As a real estate agent in Australia, you’re in the business of helping people find their dream homes or sell their properties for the best price.
It’s rewarding work, but it’s not without challenges.
Client disputes can arise unexpectedly, and when they do, they can be costly, stressful, and time-consuming.
That’s where Professional Indemnity Insurance comes in.
Let’s break down what this insurance means for real estate agents like you, how it works, and why it’s essential for anyone in the real estate industry, whether you’re a seasoned agent or running a small agency.

What Is Professional Indemnity Insurance?
Professional Indemnity Insurance is designed to protect professionals, including real estate agents, from financial losses caused by claims of negligence or errors in their work.
Simply, it can cover you if a client believes you’ve made a mistake that caused them harm, whether it’s financial loss or another issue.
For real estate agents, disputes often stem from misunderstandings, miscommunications, or honest mistakes.
Maybe a client feels you didn’t disclose critical information about a property, or they believe your advice led to a poor financial decision.
These situations can escalate quickly, and Professional Indemnity Insurance steps in to help cover legal costs, settlements, or other expenses.
Why Real Estate Agents Need It

The real estate industry is fast-paced, with high stakes and complex transactions. Even the most careful agents can face disputes.
Real estate-related complaints can often involve issues such as misrepresentation, failure to disclose property details, or disputes over contract terms.
In fact, real estate companies are among the businesses that received the most complaints.
Here’s why Professional Indemnity Insurance is a must-have for real estate agents:
- Covers Legal Costs: If a client takes legal action, the costs of hiring lawyers, attending court, or negotiating settlements can add up fast.
Professional Indemnity Insurance can cover these expenses, so you’re not paying out of pocket. - Protects Against Claims of Negligence: Whether it’s a missed property defect or incorrect advice, clients may claim you didn’t do your job properly.
This insurance helps cover compensation or damages if you’re found liable. - Manages Reputational Risks: A dispute can harm your reputation, especially if it goes public.
By covering legal and financial issues, Professional Indemnity Insurance lets you resolve matters discreetly and professionally. - Meets Industry Requirements: In some cases, Professional Indemnity Insurance can be a legal or industry requirement.
For instance, many real estate licensing bodies in Australia, like NSW Fair Trading, recommend or mandate it for certain roles. - Peace of Mind: Knowing you’re covered lets you focus on your clients and deals without worrying about potential disputes derailing your business.
Common Client Disputes Covered by Professional Indemnity Insurance

Client disputes in real estate can come from many angles.
Here are some real-world examples where Professional Indemnity Insurance can help:
- Misrepresentation of Property Details: A buyer claims you failed to mention a property’s structural issues, leading to unexpected repair costs.
Professional Indemnity Insurance can cover legal fees or compensation if the claim escalates. - Incorrect Valuation Advice: If you provide a property valuation that a client relies on, but it turns out to be inaccurate, they might seek compensation for their financial loss.
Your insurance can help manage these costs. - Contract Errors: A mistake in a sales contract, say, incorrect terms or missed deadlines, could lead to a client losing money.
Professional Indemnity Insurance can cover the resulting claims. - Failure to Disclose: If a client believes you didn’t share critical information (e.g., a property’s zoning restrictions), they might pursue legal action.
Your insurance can assist with legal defence and settlements.
Claims against real estate agents can involve issues concerning high-value transactions and complex property laws.
Professional Indemnity Insurance ensures you’re prepared for these scenarios.
How Does Professional Indemnity Insurance Work?
Let’s say a client claims you gave them incorrect advice about a property’s market value, causing them to lose money on a sale.
Here’s how Professional Indemnity Insurance typically steps in:
- You Notify Your Broker: As soon as you’re aware of a potential claim, you contact your insurance broker to report it.
- The Insurer Assesses the Claim: The insurance provider reviews the details to determine if the claim falls under your policy’s coverage.
- Legal Support Kicks In: If the claim moves forward, the insurer may appoint legal experts to represent you, covering their fees.
- Costs Are Covered: If you’re found liable, the insurance can cover compensation, settlements, or other costs up to your policy’s limit.
- Resolution: The goal is to resolve the dispute efficiently, so you can get back to running your business.
Choosing the Right Professional Indemnity Insurance

Not all Professional Indemnity policies are the same, and real estate agents need coverage tailored to their unique risks.
Here are some tips to keep in mind when working with an insurance broker:
- Check Policy Limits: Ensure the coverage amount is enough to handle potential claims.
For example, claims in real estate can range from a few thousand dollars to millions, depending on the property’s value.
- Understand Exclusions: Some policies may exclude specific risks, like intentional misconduct.
Read the fine print to know what’s covered. - Consider Run-Off Cover: If you retire or close your business, run-off cover protects you from claims made after you stop working.
- Work with an Insurance Broker: A broker, like us at Tank Insurance, can compare policies from multiple insurers to find the best fit for your needs.
Why Work with Tank Insurance
As a local insurance broker, Tank Insurance can help you navigate the Australian real estate market by offering customised insurance solutions that match the specific challenges agents face.
Our focus is on finding you the right coverage at competitive rates, working with trusted insurers to tailor policies to suit your business, whether you’re a solo agent or running a large agency.
With so much at stake, having the right insurance is important.
We’re here to guide you through the process, answer your questions, and assist you in finding coverage for client disputes and other risks.
Get the Right Coverage Now

Client disputes are an unfortunate reality in the real estate world, but they don’t have to derail your career or business.
Professional Indemnity Insurance can provide you with a financial and legal safety net. It can help you manage claims, protect your reputation, and stay compliant with industry standards.
Here at Tank Insurance, we can offer you support in looking for a policy that fits your needs and budget, giving you the confidence to focus on your work.
Ready to explore Professional Indemnity Insurance for your real estate business? Contact us today to discuss your options and get a tailored quote.
Let’s make sure you’re covered, so you can keep on helping your clients achieve their property goals without the stress of potential disputes.