Australia’s real estate services industry is expected to turn over $33 billion this year, a healthy 1.8% growth from 2021. According to IBIS World the industry is “remarkably resilient” despite the pandemic. Despite the industry’s buoyancy, it is still important to select the right professional indemnity (PI) insurance.

PI insurance is mandatory

Corporate and individual real estate license holders operating in Australia must have professional indemnity insurance. Licensees also include stock and station agents, business agents, strata and on-site residential property managers.

What does PI insurance cover?

Professional indemnity insurance aims to protect you against financial loss and covers your legal costs and damages payable. Your policy should cover liability arising from your acts as a licensee, such as negligence, breaches of professional duty or misleading conduct. These can also include incorrect paperwork, fraud, poor property management or non-compliance with laws and guidelines. The ramifications of the above risks can affect your personal and professional life.

How does it differ from public liability?

Don’t confuse it with public liability which covers paying compensation to a third party for an injury or property damage arising out of your business operations.

If you would like to know more about having the right professional indemnity insurance for you, please CLICK HERE or contact us for more information.