- Posted August 12, 2014 by
Professional Indemnity Insurance Vs. Public Liability Insurance For Real Estate Agents
The real estate industry is one of the prospering industries these days. And this is the main reason why most people want to pursue a career in this industry by becoming a real estate agent. If you are a real estate agent, it is very important for you to understand what professional indemnity cover insures against, as well as how it differs from public liability insurance. Be mindful that both are very important for real estate practice, however, they cover different circumstances.
Public Liability Insurance
This will protect the agency against personal injury or property damage claims due to an incident for which an agent can be held legally liable. Know that this will likewise cover any related legal costs. Furthermore, this will protect your practice from those costs that will arise from an incident on your property, even when it is not caused by you. It is indeed connected to the ownership and/or occupation of the premises. Among the most important triggers of a public liability policy is the degree of physical control of the property of the agent. Basically, every agent that lets their clients visit their office must have public liability insurance for them to be protected against the possibility that they will be sued for damages due to an injury incurred on the premises.
Professional Indemnity Insurance
This will protect every real estate agent from any civil liability for claims made by third parties that arise from the conduct of an agent’s real estate business that has caused alleged damage or loss. In the real estate world, plenty of professional indemnity litigation will involve the breach of duty of care, breach of contract, poor property management, breach of statutory provisions in certain laws, and allegations of misrepresentation. Experts highly emphasized that most public liability policies will exclude claims that involve professional-duty breaches, and claims associated with public liability and claims which arise from any occupation or ownership of property.
Due to the fact that exact circumstances that involve public liability-related claims might not be clear, real estate agents must have adequate cover for both types of insurance. What real estate agents must always bear in mind is that the public liability insurance policies will cover the agency on the date of the incident incurred while the public indemnity insurance will cover them from the claims that is first made against them. Every agent must ensure that they are protected adequately.