There is no single Professional Indemnity limit suitable for every Real Estate Agent or agency.

The appropriate limit can depend on:

• State or territory requirements
• Services provided
• Residential, commercial or rural activities
• Property values
• Number of transactions
• Property management portfolios
• Business size
• Franchise requirements
• Contractual requirements
• Potential defence costs
• Claims history

What are the NSW requirements? #

In New South Wales, a licensee undertaking activities requiring a property licence must generally be covered by complying Professional Indemnity Insurance.

The current minimum requirements include at least:

• $1 million for any one claim
• $3 million in aggregate for all claims during the policy period

These amounts are inclusive of certain claim-related costs.

A licensee may be covered under their employer’s complying policy rather than necessarily holding an individual policy.

Is the statutory minimum always enough? #

Not necessarily.

A minimum regulatory amount should not automatically be treated as the appropriate limit for every agency.

Higher or different limits can be relevant depending on:

• Larger transactions
• Commercial property
• Property management portfolios
• Franchise arrangements
• Contractual requirements
• Other professional activities

Contact our team if you would like us to review the Professional Indemnity limits relevant to your agency.