Real estate agent insurance

Professional indemnity insurance is among the most highly recommended covers for any business – especially if advice or recommendations are part of its services.

This policy covers claims made by clients if your advice or guidance causes them or another third party financial loss.

A typical professional indemnity policy can cover allegations relating to:

• Breach of duty

• Breach of privacy or confidentiality

• Intellectual property infringement 

• Defamation

• Lost or damaged documents

• Reputation repair

• Claims investigation costs

• Negligence.

Typically, professional indemnity insurance cannot cover:

• Existing circumstances

• Intentional damage

• Contractual obligations 

• Bankruptcy.

Professional indemnity insurance can cover your business for up to $10 million.

Each real estate agency will face different risks. However, generally speaking, common risk exposures for real estate agents include:

• Professional negligence

• Incorrect advice

• Compliance and reporting mistakes

• Fraud and dishonesty

• Conflicts of interest

• Documentation mistakes 

• Misleading information

• Cybersecurity breaches

• Breach of duty

• Poor client communication.

Some risks are more prevalent for certain businesses. Whatever your risk profile, our brokers will tailor your policy to you.

In January 2019, Phase Two of the Anti-Money Laundering and Counter Financing of Terrorism Act 2009 (AML/CFT) came into effect.

This act encourages real estate agents to look out for:

• Inconsistent activity in the customer’s business activity or profile, such as unusually large or complex transactions

• Uneconomical purchases that don’t seem to cause the customer concern 

• Hastiness to complete a property transaction
• Attempts to evade customer due diligence by acting through an intermediary
• Attempts to obscure the true beneficial owner of the property.

To get more information on how Marsh’s Specialty Practice can assist with real estate risk management, reach out to a Marsh specialist broker today.  

Yes. Professional indemnity insurance and errors and omissions insurance are interchangeable terms referring to the same cover.