Do real estate agents need insurance?

Yes, business insurance is essential for estate agents. Though there are no legal requirements to have business insurance, it is a requirement of most professional bodies to become a member.

The UK’s leading professional body for estate agents – the National Association of Estate Agents (NAEA) – states that you must have professional indemnity insurance or you will not permitted membership.

It’s also recommended that you have public liability, employers’ liability (if you have employees) and contents insurance (if you have an office).

Is my company car covered?

Some estate agencies will have company cars that will require car insurance. While this is not a component of business insurance, you should always ensure that private or company cars have the proper insurance.

Why types of insurance do estate agents need?

Professional indemnity insurance for estate agents

Professional indemnity insurance protects your business against claims made by your clients if they lose money because they followed your advice or due to negligent services you’ve offered.

What does professional indemnity cover me for?

  • A client losing money due to bad advice or negligent services
  • Breach of confidentiality, copyright, or professional duty
  • Defamation
  • Loss of documents
  • Dishonesty of employees

For example:

  • You give your client poor advice regarding the final sale of their property which leads to them losing money
  • You accidentally send a buyer’s information to the wrong seller, leading to a breach of confidentiality

Public liability insurance for estate agents

Public liability protects you if someone makes a claim against you because they were accidentally injured, or their property was damaged.

What does public liability cover me for?

  • Accidentally injury a third party – such a prospective buyer, seller, or a member of the public
  • Accidentally damage someone’s property
  • Accidental damage or injuries caused by your employees

For example:

  • You’re showing a prospective buyer around a new property, and they trip over some loose carpeting and suffer a nasty fall
  • You’re meeting with a seller to sort an issue with paperwork and accidentally spill coffee on their laptop

Employers’ liability for estate agents

In case an employee gets accidentally injured at work or falls ill as a result of working for you. This cover applies anyone working for your regardless of employment status.

Please note: employers liability is a legal requirement for business with employees. You can be fined up to £2,500 for every day you’re not insured.

What does employers’ liability cover me for?

  • An employee getting accidentally injured on the job
  • An employee falling ill as a result of working for your
  • Accidental damage or theft of an employee’s belongings

For example:

  • One of your employees is hosting an open house for a new property and trips, falling down the stair and getting a serious injury
  • At a property viewing a loose shelf collapses and lands on your employee, injuring their shoulder

Business equipment insurance for estate agents

To cover replacing or repairing lost, stolen or accidentally damaged equipment.

What kinds of equipment does business equipment cover me for?

  • Communication tools including laptops, mobiles, and tablets
  • Photography equipment including cameras and lighting

For example:

  • The laptop you’re using to compile the final documents for a client stops working the day before the sale is finalised
  • You accidentally drop and smash the mobile phone you use to keep in touch with clients and schedule viewings

Legal expenses insurance or estate agent

To handle the costs of a legal dispute either made by or against you.

What kind of disputes does legal expenses cover me for?

  • Contracts
  • Criminal prosecution
  • Data protection
  • Employment
  • Personal injury
  • Property
  • Statutory License Protection
  • Tax Protection and VAT

For example:

  • An employee raises a case against you to dispute their contracted working hours and breaks
  • A client thinks raises dispute as they believe you’ve breached their data protection rights

How much does estate agent insurance cost?

How much your policy costs will depend on the covers you choose during the quote process and the individual circumstances of your business.

AXA customers pay from £82** per year for business insurance.

To get an accurate quote for what a policy for your business would cost, get a quote online today. Plus – get a quote online and you’ll save 10%*.

What will happen if I don’t have professional indemnity insurance?

Since professional indemnity isn’t a legal requirement, you won’t be fined or end up in any legal trouble if you don’t have professional indemnity insurance.

You will, however, be solely responsible for handling any legal fees if someone makes a claim against your business, as well as paying out on any compensation if a claim is successful.

You’ll also be unable to join most professional bodies without professional indemnity.

Ready to get started?

Don’t wait – get business insurance with AXA today and Future You will thank you

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*This discount is applied automatically and lasts for the lifetime of your policy.

**10% of our customers paid this or less between January and March 2024.