{"id":3903,"date":"2019-11-28T11:24:32","date_gmt":"2019-11-28T11:24:32","guid":{"rendered":"http:\/\/www.policybee.co.uk\/blog\/?p=3903"},"modified":"2024-06-25T12:09:25","modified_gmt":"2024-06-25T11:09:25","slug":"risk-management-for-estate-and-letting-agents","status":"publish","type":"post","link":"https:\/\/www.policybee.co.uk\/blog\/risk-management-for-estate-and-letting-agents","title":{"rendered":"Insurance for estate agents and letting agents explained"},"content":{"rendered":"
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\"Insurance<\/figure>\n<\/div>\n\n\n

Investing in property is probably the single biggest financial commitment most of us will ever make. <\/p>\n\n\n\n

Likewise, protecting yourself with insurance for estate agents<\/a> and letting agents could be the most sensible professional investment you’ll<\/em> ever make.<\/p>\n\n\n\n

That’s because people like us seek expert help from people like you when we’re buying or renting property. We rely on you to guide us and help us make the right choices.<\/p>\n\n\n\n

It’s no problem though, right? That sort of thing is right up your, ahem, street.<\/p>\n\n\n\n

Well, yes, but your clients\u2019 dream moves are fraught with potential issues. Are the details accurate? Was the property valued correctly? Did you give your opinion or a statement of fact? Is your clients\u2019 data secure?<\/p>\n\n\n\n

And that can<\/em> cause problems. The kind of problems insurance for estate agents and letting agents is designed to help with.<\/p>\n\n\n\n

<\/p>\n\n\n\n

Wrong move<\/h2>\n\n\n\n

There\u2019s a decent argument to suggest that being an estate or letting agent is fundamentally risky, purely because of the sums of money involved. <\/p>\n\n\n\n

Property isn\u2019t cheap and when there\u2019s thousands, perhaps millions of pounds swilling about you need to have your wits about you. Throw in an emotional edge and all of a sudden even a small mistake could turn into a big mess.<\/p>\n\n\n\n

To compound the issue, and in the interests of maximising profits, it\u2019s likely you\u2019re not just limiting yourself to marketing property and negotiating sales\/leases either. What about property management? Or financial services broking? Vital streams of revenue, sure, but all this adds to the risk mix.<\/p>\n\n\n\n

<\/p>\n\n\n\n

In need of updating<\/h2>\n\n\n\n

Just in case you\u2019re not already aware, you have something called a professional duty of care<\/a> to your clients. Both legally and morally.<\/p>\n\n\n\n

And although the fact you’re a professional has a nice ring to it, it can also be a bit of a double-edged sword. It means you can charge for your expertise but it also means you\u2019re open to claims of professional negligence if something (however small) goes wrong.<\/p>\n\n\n\n

The service you offer has got to be of a higher standard than that of the \u2013 no pun intended \u2013 average man in the street. It\u2019s what your clients pay you for.<\/p>\n\n\n\n

If that service isn’t up to scratch, or you make a mistake and your client suffers a loss as a result, they\u2019re perfectly at liberty to sue you. That\u2019s what we insurance people call a breach of your duty of care.<\/p>\n\n\n\n

What you have to think about is this: what could I be sued for? Where’s my risk?<\/p>\n\n\n\n

<\/p>\n\n\n\n

What does insurance for estate agents and letting agents cover?<\/h2>\n\n\n\n

We know that claims rarely arise from a basic lack of skill or competence. More likely, it\u2019s something small and unexpected that leads to something big and expensive.<\/p>\n\n\n\n

Thankfully, professional indemnity insurance for estate and letting agents<\/a> exists to help fend off claims of all sizes. Once thought of as luxury cover, members of both NAEA<\/a> and ARLA<\/a> now need it as a condition of membership. It’s also required if you want to join the Safeagent<\/a> (formerly NALS) scheme. <\/p>\n\n\n\n

That\u2019s all very well but what sort of thing does it cover? Exactly what allegations can you face?<\/p>\n\n\n\n

If it helps, here are some typical reasons estate and letting agents face claims:<\/p>\n\n\n\n