PI Insurance helps protect agents from legal claims over incorrect advice or loss of earnings incurred through negligence.
There's also an increasing amount of regulation and legislation facing the Private Rented Sector, which may make you more liable for more things.
All businesses seek to ensure that their customers are always happy, but sometimes, one disgruntled client can be all it can take to destroy a company's hard-earned reputation. The damage can be devastating.
One way to protect your business against such occurrences is to invest in Professional Indemnity Insurance, which helps protect you by covering the legal costs and claim expenses for accusations of breach of professional duty or employee dishonesty.
Why do I need Professional Indemnity Insurance?
As an agent, you will likely handle sensitive client data and manage relationships. Any breach of these could bring a complaint against your business. Similarly, if a customer were to suffer financial loss due to advice you provided, they may seek legal action to claim financial compensation from you. Mistakes happen, and even something as simple as a room mismeasurement on a listing could impact the rental income a client could achieve and be enough to warrant a claim. Professional Indemnity Insurance has you covered.
As you probably know, industry bodies such as the Association of Regional Letting Agents (ARLA) require agents to have Professional Indemnity Insurance before joining. Since these are important to bolster your visibility and reputation, such an insurance policy may be seen as an essential investment. As well as shielding you from the financial and reputational impact of an unhappy and litigious client, PI Insurance also provides evidence of your professionalism and commitment as a business, boosting your reputation further.
You don't just need PI cover while your business is trading, but also for six years afterwards. The good news is that it's a tax-deductible expense.
Why changing legislation makes Professional Indemnity Insurance more vital than ever
PI Insurance covers a range of business sizes for any civil liability arising out of the ordinary course of your professional business. It can cover the costs of compensation to correct a mistake and your legal defense expenses. It's equally vital for individual property agents as it is for regional chains.
It also offers peace of mind in an environment where rights change quickly. Last year saw the UK Government unveil the full details of its Fairer Private Rented Sector White Paper, which is likely to include a suite of reforms that give more power than ever to tenants.
What this means to you
The cost of your policy will depend on your level of business turnover as well as your claims history. Other factors, such as your work, will also influence how much a Professional Indemnity Insurance policy will cost.
We provide between £100k to £2m of PI cover to suit your needs with various optional add-ons. Click here to find out more about our cover. Alternatively, you can fill out an enquiry form or get in touch on 0800 035 8258.