Let’s face it. Working in the real estate sector can be risky business. As an estate agent, your services involve a lot of time spent directly with clients, often in their homes and other private locations.
In such circumstances, you are exposed to potential risk at every turn. If something goes wrong while selling or renting a property, you could find yourself on the receiving end of legal action – or even see your career as an estate agent come to an end. If that sounds like a worst-case scenario, that’s probably because it is! However, by taking out professional indemnity insurance as an estate agent there is no need to worry about dealing with the consequences of any potential future mishaps.
What is Professional Indemnity Insurance for Estate Agents?
Professional indemnity insurance (PII) protects you from both the financial and reputational consequences of any errors, omissions or missed deadlines you may have during your work. It is essential for anyone working in real estate, estate agency, property management, mortgage advice or surveying. It covers you for any claims made against you for mistakes made in the field of real estate, such as failing to meet a terms of service or misapplying government legislation, as well as mistakes made at work. You also get covered for miscommunication, misrepresentation of facts and negligence in the work that you do so if you are accused of malpractice you can be protected.
PII insurance is incredibly important for estate agents as they are always dealing with other people’s money as well as their own earnings. This is because real estate agents handle the buying and selling of homes. They also often deal with private landlords and tenants who may be moving into a new home. Estate agents are also often present at home viewings and open houses to help potential buyers make decisions about their purchases. This means that PII for estate agents is essential in order to protect their livelihoods.
Why is PII for Estate Agents so Important?
As an estate agent, you are a key player in the real estate sector. You may deal with a number of clients and property owners on a daily basis and be expected to meet tight deadlines and terms. If you make a mistake, it could result in a complaint from a client — and even worse, legal action against you. This type of insurance can protect you against these consequences. You may be asked to pay out of your own pocket if the complaint is minor, but if it escalates and results in legal action, you could find yourself facing a hefty bill. Even worse, you could lose your job if your employer is named in the legal action — and your reputation will be severely damaged as a result. It ensures that your employer is protected if you make a mistake as well as you. If you are looking to get cover, the team at Heath Crawford will be able to give you professional advice on the best insurance available.
Common Issues that Require PII
There are several different situations that an estate agent may encounter in the course of their work that require PII. Some of the situations include:
- A complaint from a client. This could be related to a contractual obligation not being met, a contractual obligation being met incorrectly (not meeting terms of service) or an incorrectly applied government legislation.
- An incorrect valuation of a property.
- Wrong marketing of a property.
- An incorrect estimation of a property’s rental price.
- An incorrect estimation of a property’s sale price.
- An incorrect estimation of a property’s cost to repair.
- An incorrect estimation of the time it will take to sell a property.
- An incorrect estimation of the time it will take to rent a property.
- An incorrect estimation of a property’s acquisition cost.
How Much Does Professional Indemnity Insurance Cost?
It is important to note that PII for estate agents is not a fixed price and each company will have its own criteria for setting an insurance policy’s cost. For the most accurate quotes for the most competitive prices on the market, be sure to check out the options for PII at Heath Crawford.
Is PII Mandatory in the Real Estate Business?
Although it is not required for all real estate agents to take out PII for estate agents, it is recommended. It is important to note that not all insurance policies have the same coverage, therefore take extra care in reading and understanding your policy so that you know what you are covered for.