Professional Indemnity for Real Estate Agents
The wrong wording can cost your client more than a commission.
A familiar Tuesday for brokers.
Jess’s client, Lease Whitherspoon, runs three real estate offices. A misfiled tenancy ledger triggers a complaint. Then a buyer claims a misleading estimate cost them thousands. The agency wants answers. The board wants proof of cover. Jess needs to demonstrate what’s covered, what’s not, and how quickly a claim can be processed.
The existing Professional Indemnity wording is vague. Costs eat into the limit. No clarity on comingling, valuations, or franchisor responsibilities. The quote path requires emails and delays. Everyone’s on edge.
Hutch’s Real Estate Professional Indemnity gives brokers a clear wording, costs and expenses in addition to the limit, and real estate specific endorsements. Quote on Ebix Sunrise Exchange or SCTP, lodge claims with our in-house team, and keep clients moving.
Get a quote on Ebix Sunrise Exchange or SCTP
Coverage at a glance
Core sections
Section 1: Professional Indemnity up to the policy’s Indemnity Limit.
Civil Liability for claims first made and notified in the period of insurance, arising from professional real estate services.
Costs and Expenses paid in addition to the limit, unless otherwise specified in the schedule.
Section 2: Public Liability (where selected), with defence costs and supplementary payments per the wording.
Section 3: Cyber - available on Sunrise as a separate section; on SCTP it is provided via an endorsement applied to all quotes (aggregate limit as shown on the Schedule).
Optional Extensions
Fidelity: Up to $500,000. Covers loss of money or other property held as part of the professional business that is discovered during the policy period and caused by the dishonest or fraudulent act or omission of an employee.
Sudden and Accidental Pollution: Up to the Section 1 limit. Provides cover for claims first made and notified during the policy period arising from sudden, accidental and unintended discharge, dispersal, release or escape of pollutants directly caused by a negligent act, error or omission in the conduct of the professional business.
Previous Business: provides cover for professional services undertaken before the policy inception date, when performed by a director, partner or principal of the insured under a prior business of the same nature, as disclosed and noted on the Schedule.
Optional extensions apply only when selected and noted on the Schedule. Refer to the Policy Wording (HCL3RE) for full terms, conditions and sub-limits.
Real Estate–Specific Endorsement Highlights
Designed for: Australian real estate agencies, property managers and strata professionals seeking clear, industry-aligned wording that combines professional indemnity, public liability and cyber cover in one policy.
Extensions: Former Subsidiary, Franchisors’ Indemnity, General Insurance Distribution.
Clarified Exclusions: Occupier’s Liability (updated to allow for management of property), Comingling, Conflict of Interest, Valuation or Conveyancing services.
Also see: Financial Services Guide (FSG)
Key Covers
- Civil Liability for claims first made and notified during the period of insurance arising from professional real estate services.
- Defence Costs paid in addition to the Indemnity Limit for covered claims (up to an amount equal to that Limit), unless the Schedule states inclusive. We may advance reasonable defence costs subject to policy conditions.
- Investigation and inquiry costs, subject to sub-limits.
- Public relations expenses to help manage reputation after a covered event, sub-limits apply.
- Real Estate endorsement adding sector-specific extensions and clarified exclusions.
- Optional Fidelity for employee dishonesty, if selected, with limits and conditions applying.
Appetite & Fit
(quick guide)
| Typically suitable for | May not be suitable for | Not suitable for |
|---|---|---|
Real estate agencies, property management businesses, and strata managers with SME profiles. Revenue up to $10M, with $1M preferred. Licensed professionals providing residential, commercial, or strata management services, including holiday letting and facilities management within stated thresholds. |
Groups with mixed activities or franchised structures that include non-real estate operations. Agencies with poor risk management or unique contract terms. Businesses involved in development or investment activities beyond agency or management scope. |
Business brokers, mortgage brokers, or valuation service providers. Businesses providing investment or financial advice. Manual, blue-collar, or construction-based activities outside professional real estate services. |
Examples only. Subject to underwriting. Always refer to the current Policy Wording for terms, conditions, limits and exclusions.
Broker FAQs
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Is this wording different from a generic liability policy?
Yes. This wording is written specifically for real estate agencies. It includes a Real Estate endorsement that adds extensions and clarifies exclusions relevant to agency and property management work. A generic liability policy won’t address exposures like comingling, franchisor obligations or valuation services. Always review the Policy Wording and Schedule for full details.
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Does the wording address common Real Estate exposures?
Yes. The Real Estate endorsement adds extensions such as Franchisors’ Indemnity and General Insurance Distribution, and clarifies exclusions like comingling and certain valuation/conveyancing services. It also refines Occupier’s Liability to allow for property management. Always review the Schedule and endorsement for specifics.
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Are costs inside the limit?
No, costs and expenses are in addition to the Indemnity Limit unless the Schedule states otherwise.
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What isn’t covered?
Every policy has exclusions. Common examples include audit of publicly listed companies, financial or legal services, unauthorised funds transfer unless conditions are met, trading debts, and general cyber loss (except where covered under Section 3). Refer to the full policy wording for the complete list of exclusions, terms and conditions.
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What documentation do I need to quote?
Agency details, services, revenue, prior claims information, business activities, fee income, desired limits, and any material contracts that might affect cover.
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How do I place this?
- Review the docs – Download Policy Wording (HCL3RE).
- Quote – Use Ebix Sunrise Exchange or SCTP.
- Bind - Bind and Close instantly.
- Issue Documents – Issue automatically generated Schedule and CoC; and share with your client.
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How do I lodge a claim?
Notify Hutch Claims as soon as practicable and provide relevant documents (contract, scope, correspondence). Our in-house claims team will confirm next steps.
Why brokers choose Hutch
A broker-first quoting experience, built for today’s Real Estate sector.
Many PI wordings for real estate professionals don’t clearly address exposures like comingling, franchisor responsibilities, or property management liabilities. Ambiguities in coverage can slow down settlements and strain client relationships when complaints arise. Principals and landlords often demand a Certificate of Currency before listings, management agreements, or lease settlements can proceed.
Fast, smart quote pathways within Ebix Sunrise Exchange and SCTP mean brokers can enter, quote and bind in minutes. No double-keying. No closings. Invoices auto-populate.
When a referral is needed, you won’t be waiting long. Our Financial Lines Underwriters typically respond within one business day and are available to talk through complex property management, franchise or principal indemnity scenarios.
Our wording is purpose-built for Real Estate professionals, not retrofitted from general PI. Extensions such as Former Subsidiary, Franchisors’ Indemnity, and General Insurance Distribution ensure coverage reflects how real estate agencies and property managers actually operate.
Built for brokers. Designed for your clients' modern-day complexities. Backed by Lloyd’s and other insurers.
The clear way to better cover.
Downloads
Policy Documents
Underwriter Spotlight
Ross Chambers
Head of Financial Lines
Ross brings a rich work history and a passion for insurance intricacies. Armed with a double degree in Economics and Finance, Ross began his career in a graduate program, where he gained exposure to diverse insurance facets, sparking his industry interest. Transitioning to underwriting in 2014, he specialises in professional indemnity insurance, relishing its complexity.
This page is intended for licensed insurance brokers. General advice only. It does not take into account your client’s objectives, financial situation or needs. Coverage is subject to the terms, conditions, limits and exclusions in the Policy Wording. Available via Ebix Sunrise Exchange and SCTP. Hutch follows the General Insurance Code of Practice and ASIC RG 234 guidance in our communications.