Estate agents’ insurance

Why do estate agents need professional indemnity insurance?

You can’t be a member of the NAEA without it. In the interests of being professional, that’s a good enough reason by itself.

But that’s not all, of course. It’s a sue-first-ask-questions-later world out there.

Mistakes happen, accusations are made, solicitors get involved and clients want payback. Rightly or wrongly these things happen every day and, sooner or later, you could be on the receiving end.

A claim won’t go away if you ignore it. And there are no shortcuts. You have to Do Something About It.

So, you need professional indemnity insurance because you have a business to run; because you have limited funds; because you’re not legally trained; and because your reputation matters.

What else is there?

How much professional indemnity insurance do I need?

For NAEA members:

A minimum of £100,000 is needed. Residential letting agencies need a minimum of £150,000, unless your annual fee income is over £150,000 and then you need at least £500,000.

Other than that, you have to decide what level of cover is enough for you. Consider what you do, who you do it for and how much it’s worth. Think about worst-case scenario and what could go wrong. What’s the most expensive mistake you could make (or be accused of making)?

Always bear in mind that you can’t have too much cover. Your legal defence can cost many tens of thousands of pounds - and that’s before the compensation bill from your client arrives. Your level of cover has to be enough to cover all of this.

It’s a tricky one to get right. Have a read of this guide or call us if you need more help.

What does professional indemnity insurance cover?

Negligence claims and allegations made against you by clients and third parties, because of mistakes you’ve made and things you’ve failed to do.

Specifically (but depending on the policy wording):

• Defamation
• Intellectual property infringement
• Loss of documents or data
• Negligent misrepresentation or misstatement
• Employee dishonesty
• Virus transmission
• Breach of confidentiality
• Failure of third-party equipment

But that’s not all. Some professional indemnity policies can fix a mistake before your client is even aware of it, thereby preventing a claim in the first place.

Clever stuff.

Do I need public liability insurance?

Most estate agents have an office. And most estate agents go out and about. If that’s you, you should probably have estate agents’ public liability insurance.

It covers claims of physical damage against your business. So, if you break something or someone’s injured, you’re covered.

What else do I need?

Employers’ liability insurance covers your business if an employee sues it for damages. Claims are usually because they’ve suffered injuries and illnesses as a consequence of working for you. It’s a legal requirement for UK businesses with employees.

Office and property insurance covers the things in your office (furniture, plants, fixed IT equipment etc) and portable insurance covers gadgets and technical equipment away from the office (laptops, tablets, projectors etc). If you’re not sure it’s worth insuring, add it all up - it’s probably worth more than you think.

Business interruption insurance means you can still work when your office is out of action. Be it flood, fire or flea infestation, you’re covered for the costs of setting up elsewhere and for any lost revenue in that time.

Directors’ and officers’ insurance covers your company bosses. Anyone from regulators to shareholders to competitors can accuse you of not running a business with due care. Worse, directors are personally liable for their actions. The good thing is this insurance covers your defence costs and any compensation you have to pay. So you can put away your chequebook.

Why choose us?

Business insurance is our bread and butter. It’s what we do, day in, day out.

We’ve ‘advised sales’ status from the FCA. Which means we’re approved to give insurance advice that’s tailored to your needs.

No sales pitch, no script, no flimflam. Just pick up the phone and speak to one of our friendly, insurance-savvy experts.

And if you’d like to sort out your cover online, that’s no problem too. You can get a quote on our website and add whatever you need.

You’ll get jargon-busting policy documents sent straight to your inbox. Plus bonus stuff like an “I’m insured” badge for your website and a reward for recommending us.

Still not convinced? Check out our customers’ reviews on Feefo. They’ll tell you everything you need to know about us.