What Insurance Cover Do I Need?
Professional Indemnity (PI) is one of the most important insurances for real estate property managers across Australia. The most common types of claims brought against real estate professionals involve allegations of professional negligence and/or misleading and deceptive conduct.
In addition to professional indemnity insurance it is recommended to have Public Liability (PL) insurance to cover the legal liability to third parties for damage arising as the result of an occurrence in connection with the insured’s business or premises against bodily injury or property damage.
- Professional Indemnity
- Cyber Insurance
- Public Liability
- Management Liability
Cyber Insurance is also recommended to protect your business from the financial impact of computer hacking or a data breach. If your business has a website or electronic records, you’re vulnerable to cyber hackers.
Management Liability is also recommended if your agency has employees or contractors. Management Liability can protect Directors and Officers for legal liability they may incur personally in managing a corporation, it also extends to the corporation itself for certain types of claims. It can also include Employment Practices Liability Insurance which covers a range of liabilities that an employer may face following wrongful termination, refusal to employ, failure to promote, demotion, disciplinary action, sexual harassment, discrimination or defamation of an employee.
Claim Example
The purchaser issued proceedings in VCAT against the vendor and our agent insured. The main allegations against the Insured is that they allegedly represented to the purchaser that the auction was not conducted on a GST exclusive nature and the purchaser was led to believe that he did not have to pay an additional sum of $48,000.
The claim settled out of court for $48,000. The Insured’s contribution was $30,000. The legal costs incurred were $10,000. Both the legal costs and the insured’s contribution were covered by the policy.
