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Estate Agents Professional Indemnity Insurance

Here at Hensure Business Insurance we provide Estate Agents Professional Indemnity Insurance. Professional Indemnity insurance tailored to protect you from the specific risks of your profession.

As Estate Agents are involved in the selling, renting, letting or management of both residential and commercial properties/other buildings there may be occasions where they would need to be covered by Estate Agents Professional Indemnity Insurance. The act of marketing a seller’s property, negotiating with prospective buyers or tenants can generate situations where a client may feel that you haven’t delivered your agreed service. Even with the legal side for transactions being carried out by solicitors, clients may aim their criticisms at the Estate Agent.

Unless the Estate Agents are members of the National Association of Estate Agents (NAEA), or the Association of Residential Letting Agents (ARLA) there is no legal requirement to carry Professional Indemnity Insurance but most firms would consider this to be sensible risk management.

Below is a list, by no means exhaustive, of the type of work undertaken:

  • Residential & commercial estate agency – Estate Agents sell properties by various advertising methods or auction.
  • Residential property letting & management – This involves the management & letting of residential properties that may be freehold or leasehold.
  • Commercial property management/land management – The management of commercial premises including the maintenance, collecting of the rent & services provision.
  • Rent Review/lease renewals – The owners or tenants of commercial properties sold  that are under lease may require a periodic assessment & and a review of the rent being charged.
  • Property surveys & valuations – Estate Agents will establish the marketing price for sale but can also inspect buildings to establish their value.  Estate Agents undertaking surveys may need to be Royal Institute of Chartered Surveyors (RICS) qualified.

What insurers are looking for to assess the risk:

  • Company size –This is the gross annual income of the company & the number of partners/directors/employees.
  • Qualifications and experience – Insurers will want confirmation that there is sufficient experience and that the estate agent is suitably qualified to carry out the role.
  • Type of work – What will want to understand the split of annual income derived from each discipline that the estate agent is involved in. For example what proportion of the work residential or commercial estate agency. Is there any involvement with property management or letting?
  • Property values – The area that the Estate Agents work in gives the idea of average house values but information of the highest value of a property sold could potentially result in a more expensive claim. Purchasers and sellers of high valued properties can be more demanding & litigious.
  • Retroactive exposure – Does the business have an exposure to claims arising from past work, whether in the current business or a previous company.
  • Overseas exposure – Does the practice carry out work for overseas clients? Exposure to the USA/Canada will be of particular interest due to the litigious nature of the society in North America.
  • Claims experience –This information reflects on the type of work carried out by a company. It also reflects the quality of the company’s work, experience, staff & internal risk management.
  • Hensure Business Insurance can cater for all types of estate agents risks and approach a number of different insurers to obtain the best cover and premiums available in the market.

 

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Typical policy coverage under an Estate Agents Professional Indemnity policy would include;

  • Breach of civil liability
  • Negligent act error or omission
  • Unintentional intellectual property rights infringement (other than patents)
  • Unintentional breach of confidentiality
  • Unintentional defamation
  • Loss of third party documents or data
  • Breach of estate agents’ legislation
  • Computer virus transmission
  • Ombudsmen awards
  • Negligence of sub-contractors
  • Irrecoverable fees
  • Bodily injury or property damage arising from breach of professional duty
  • Defence costs
  • Court attendance costs

Other Insurance Services

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Insurance For Property Owners
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