Important insurance cover for property agents

No two agencies are the same and time should be taken to understand risk exposures and specific cover requirements as well as future plans so that the business insurance programme is flexible enough to grow with the agency.

Insurance is more than a tick-box exercise

From liability risks to data privacy and cyber risks, insurance programmes should be designed to protect the different areas of a business, with cover levels that will be sufficient in the event a claim needs to be made.

Propertymark’s official insurance broker, Gallagher, can advise about agencies' requirements and day-to-day activities on the covers and cover levels you should consider.

Professional indemnity (PI) insurance

When mistakes happen or accusations of negligence are made, professional indemnity insurance can step in to help protect a business financially should a third party make a claim. For example, a failure to disclose information about a property for sale or rent could take place and the client may subsequently make a claim for negligence. In such a scenario, PI insurance could cover legal costs and other associated costs.

Office insurance

• Public liability: Cover for claims against the business for bodily injury or property damage for which a business is deemed liable, such as a potential customer sustaining an injury in a property viewing.
• Employers’ liability: In most cases, this is required by law if a business has employees. It can help protect against the costs arising should an employee make a claim due to a work-related injury or illness—from a contract cleaner having a trip or fall to an employee making a claim for a mental health issue caused by their job.
• Business interruption: If an insured event occurs and the business cannot operate for a period of time, this cover can be invaluable to protect the business from loss of revenue, additional work-related costs and loss of rent payable/receivable. For example, an office may be affected by a flood, or IT systems could be disrupted due to a power outage.
• Money: Covers cash held on the premises, in transit or at the home of an authorised individual. This can be particularly important if large sums of money are held, e.g., cash deposits for rental properties.
• Property all risks: Can include cover for laptops, tablets and phones away from the premises, offering financial protection to replace items in the event of loss or damage.

Cyber insurance

Property agents hold vast amounts of client data—much of which is sensitive—as well as engaging in online marketing activity via their website and/or social media. Should IT security be compromised, either through a cyber-attack or a simple instance of human error, it could lead to financial loss and potential disruption to day-to-day activities. Having a cyber policy in place can help protect against financial fallout from a cyber event or data breach.

Directors’ & Officers’ (D&O) liability

D&O insurance helps protect senior executives on a personal level, should a claim or allegation be made against them by an employee, the company or a third party. For example, the director of an agency may be accused of harassment of an employee, financial negligence or even fraud. Any company, no matter how large or small, has the potential for investigations into a director’s behaviour. As a director or officer of a business, personal assets can be at risk should a claim be made against them personally. Directors can still be pursued after they have left the company and D&O insurance can continue to provide cover for a period of time.

Terrorism cover

Acts of terrorism are not confined to large, global corporations. Any business, regardless of size, industry or location, could be affected directly or indirectly by a terrorist event. For example, if an event led to the denial of access to a business property, this could result in serious business interruption, even if the property suffers zero damage.

Commercial legal expenses

This cover can help protect against the financial cost of legal disputes such as contract disputes (including tenancy), personal injury and employment disputes, and tax/VAT disputes. It can be included as part of certain policies or as a standalone policy.

Specialist advice and help

Gallagher offers Propertymark members a specialist scheme that provides cover that complies with Propertymark regulations. In addition, the cover is provided on an advised basis, giving you confidence that the cover provided is suitable for your needs.

Complete a proposal form to find a cover to suit your agency  →