Real Estate Agents Insurance Australia
Why All Successful Agents Should Take Out This Cover
The Australian real estate market has seen unprecedented growth in the last two decades. Cities such as Sydney and Melbourne have radically transformed their real estate landscape in a minuscule amount of time. As a result of this, a boom in lucrative opportunities within these real estate markets has emerged, leading to a massive influx of new real estate agents and property managers. It’s critical that those involved in Australian real estate take out real estate agents insurance to protect themselves from unforeseen circumstances.
Why Do I Need Real Estate Agents Insurance?
Although on the surface the service provided by real estate agents may be simple, there are lots of far-reaching legal consequences that occur. Many seasoned and successful agents will be scrupulous and careful about every bit of advice that they provide clients as they understand entirely the ramifications that may arise if they are found to have offered neglectful and careless advice.
However, even the most successful agents understand that there are still circumstances where even acting in the best interest of their clients can make them vulnerable to legal action. For example, during the Global Financial Crisis, a vast amount of otherwise honest and hard-working agents were subject to legal proceedings.
With this in mind, it is highly recommended that all real estate agents, new or experienced, explore the real estate agents insurance options that are available to them.
What Insurance Policies Do Real Estate Agents Commonly Require?
The most popular type of insurance policy that real estate agents require is both public and private indemnity insurance. Almost all communications and advice that is provided by a real estate agent can be subject to legal action. Real estate agents are seen under Australian corporate law as professionals that are hired to provide expert advice to their clients. The legal implications of this mean that any sort of actual or alleged negligence or error by the agent can lead to a lawsuit.
Public and private indemnity insurance protects from both alleged or actual negligence, errors or misrepresentations that were a result of the communications provided by the agent. There are many grey areas regarding whether or not a given statement of advice is to be regarded as falling within the realm of negligence. Because of this, real estate agents can never be sure that the advice that they provide will be completely free from being subject to legal proceedings in the future.
Another type of insurance that is commonly taken out by real estate agents is management liability insurance. In tandem with the booming Australian real estate market, many real estate agents started their own real estate agencies and property management firms. Leaping from being just a real estate agent to being both a real estate agent and a manager of a realty firm comes with it a whole new range of different risks.
Management liability insurance ensures that any sort of mismanagement by a realty business that has lead to third-party losses is covered. Although indemnity insurance is focused on advice, management insurance is focused on actually running a real estate agency and covering the risks that come with this type of venture. By taking out this type of insurance, agents ensure that not only themselves, but the directors and managers of their company are safeguarded.
Types Of Coverage We Recommend For Real Estate Agents
The advice that real estate agents provide their clients is numerous. Comparing different property prices, providing an outlook on future real estate market conditions, issuing guidance on selling or renting price of a property are all within the domain of an agent. All of these types of activities, as well as many others routinely performed by a real estate agent, can lead to legal action by their clients. Because of this, we highly recommend that all real estate agents take out both public and private indemnity insurance.
Furthermore, for real estate agents that have decided to start their own agency or property management business, we recommend that they take out management liability insurance as well. Many real estate agents are unaware of all of the risks that come with making the jump towards managing a real estate agency. In order to ensure the future financial health and expansion of a real estate company, we believe it is critical that management protection is utilised.
Apply For Real Estate Agents Insurance Today
Many real estate agents are unaware of the far-reaching consequences of the activities that they have undertaken routinely through the services that they provide. Unfortunately, many real estate agents have fallen victim to legal proceedings that have left them in financial ruin. Because of this, we cannot stress how vital real estate agents insurance is for any kind of agent working in the Australian market.
For an obligation-free, competitive quote, professional insurance advice or more information on how we can help you find the best Real Estate Agents Insurance solution, please contact one of our expert consultants today!