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.

Current New South Wales minimum requirements are summarised in the NSW Fair Trading Professional Indemnity Insurance information sheet. See also our overview of industry and legislative insurance requirements for Real Estate Agents.