REAL ESTATE PI INSURANCE
REAL ESTATE PI INSURANCE
AMC Insurance are a broker that can obtain Real Estate PI insurance cover for your business. We are experienced with Professional Indemnity insurance and work closely with specific teams of insurers. In turn, we tailor policies to protect our clients’ from risk, while maintaining competitive rates.
We are committed to guiding firms on real estate PI insurance through the process of obtaining cover providing professional advice in easy-to-understand language.
WHAT DOES REAL ESTATE PROFESSIONAL INDEMNITY INSURANCE COVER?
Real Estate PI insurance protects businesses from claims from a wide array of services and advice you may have provided (e.g. Real Estate Sales, Commercial Sales, Auctioneering, Mortgage Broking, Property Management, Body Corporate/Strata Title Management etc.). Traditional claims from real estate professional indemnity insurance matters may include, but not be limited to:
- A breach in your duty of care owed from your services
- Errors and omissions from real estate listings and advertising of a property
- Breach of confidentiality, or, privacy
- Incorrect advice in relation to investments or properties
HOW DOES PI COVER PROTECT MY REAL ESTATE BUSINESS?
In short, Professional Indemnity is a legal defence costs policy. It responds to many exposures, however, a few examples are:
- Written or verbal threats of legal action by a client from an actual or alledged negligence or failure in the services provided
- Demands for financial compensation from your clients
- Actual legal demands or Court proceedings against your business from services provided
Circumstances that could result in a claim need to be notified to your real estate PI insurance broker. In turn, they report it to the insurer. Mattters that do not eventuate into a claim should not impact renewal premiums offered by the insurer. However, failing to notify a matter can result in claims being declined in some cases. This is due to the ‘claims made and notified’ structure of the policy (speak with us for further information).
Formal claims require a lawyer to be appointed from by your insurer. Their initial role is to investigate and provide interim advice to your business. The lawyer reports back to your insurer on the facts and provides guidance to them on policy coverage. Once indemnity is granted by the insurer the lawyer will represent your business in defending the allegations, or, reaching a settlement if appropriate.
To recap: real estate Professional Indemnity insurance covers your business for legal defence costs. Also, payments for damages (or settlements if deemed appropriate by your insurer) along with any other extensions offered by the insurer.
HOW MUCH DOES PI FOR A REAL ESTATE AGENT COST?
The cost of any insurance policy is an important consideration for any business, not just real estate agents. Unfortunately, it is too difficult to provide an indicative cost; many factors are involved including:
- Professional fees or gross revenue
- Staff numbers
- Types of real estate services offered (e.g. Residential Sales, Commercial Sales, Property Management, etc.)
- Policy limit
- Prior claims
As a broker who focuses on real estate Professional Indemnity insurance we understand your time is important. We aim to streamline the process by only obtaining the relevant information to obtain quotes. For prospective clients it is possible for us to approach insurers and email you an indication before deciding if a formal quote and recommendation is beneficial.
WHAT INFORMATION IS NEEDED TO OBTAIN A REAL ESTATE PROFESSIONAL INDEMNITY INSURANCE QUOTE?
Our real estate PI insurance proposal form is available for download on this page. You can contact us to have a copy emailed to you if preferred.
Brokers that specialise in real estate professional indemnity insurance quotes will require a proposal form, renewal declaration or addendum outlining your risk exposure. This applies to the previous year and a forecast for the next twelve months. We can use another broker/insurer form so long as it includes the relevant information to accurately assess your risk.
An overview of documents that can assist quoting are:
- Proposal Form / Addendum / Renewal Declaration
- Expiring Certificate of Currency (to match the insured entities, expiry dates, policy limits, retroactive date and who you are currently insured with as not to approach them in error)
- Claims History (only required if there have been previous notifications or claims reported)
- Complaints Register (a copy is requested if providing Property Management services)
WHY DO I NEED A BROKER TO OBTAIN PROFESSIONAL INDEMNITY INSURANCE?
Professional Indemnity insurance requires an insurance broker or agent to act as an intermediary between your business and the insurance company. At AMC Insurance we only ever work as a broker. We always act on behalf of your business and not for the insurer.
Even if you access your PI via an online portal you are not dealing direct with an insurer. Online brokers provide an advantage for businesses who require transactional coverage. However, real estate professional indemnity insurance should be provided from an experienced broker.
WHAT ARE THE ADVANTAGES OF USING AMC INSURANCE AS A BROKER COMPARED TO OUR EXISTING PROVIDER?
We are a niche broker specialising in limited industry segments. Therefore, we can provide our clients tailored advice on their insurance program. Our structure and experience allows us to respond quickly with high quality service standards.
For existing clients start review of their renewal programs approx. eight (8) weeks out from the expiry date. We do streamline this process where possible and only obtain the relevant information to negotiate replacement cover.
It is important to promptly return your declarations to us once received. We can start renewal negotiations immediately allowing time to address any unexpected challenges that occur. Alternative quotes will be sought as needed too. The process should be completed in one (1) or two (2) weeks. That’s right – no more getting quotes a few days out from your expiry date!
For prospective clients with an existing policy or quote we are happy to provide a policy comparison service to highlight primary differences in cover. As a result, you’re able to make a more informed decision on your options.
We ensure claims are handled with urgency by notifying your insurer immediately. Also, ensuring where appropriate panel lawyers are appointed and in contact with your business promptly. They can then commence review and defence on any allegations received.
Lastly, our primary point of difference as a niche broker means that once you have appointed us you are most likely at all times to only deal with our Director, Alex Conlon. This provides many of our clients peace of mind: one consistent point of contact year on year. No more being passed around from different team members on every inquiry, as can be the frustrating case in some other broking firms.
…SECONDARY REAL ESTATE INSURANCE COVERS:
Please contact us for assistance on the following:
- Public & Products Liability
- Management Liability
- Office/Business Insurance
- Cyber Liability Insurance
Alex Conlon
Director | M: 0409 092 947 | E: alexc@abterrace.com.au