Property Manager Professional Indemnity Insurance

Premiums for property manager PI insurance typically range from $1,200 to $6,000 per year for small to mid-sized agencies, depending on rent roll size, revenue, property types managed and claims history. Larger agencies managing commercial or strata portfolios may pay significantly more. The best way to get an accurate price is to request a free quote through Shielded.

Most property managers carry between $1 million and $5 million depending on portfolio size, fee income and any contractual requirements from landlords or franchise groups. Agencies managing high-value commercial or strata portfolios may need $10 million or more. Your broker can help assess the appropriate limit based on your specific exposure.

Yes. Most property manager PI policies cover financial loss arising from genuine errors or omissions in trust account management, including incorrect disbursements, bond handling mistakes and reconciliation errors. However, deliberate fraud or dishonesty by principals is typically excluded, though some policies offer fidelity extensions for employee dishonesty.

Professional indemnity insurance covers claims arising from your professional advice, errors or omissions in property management services. Public liability covers claims for bodily injury or property damage to third parties, such as a visitor being injured at an open inspection. Most property managers need both policies, and they are often bundled together by insurers.

Yes. If a tenant suffers financial loss or injury due to a property manager's negligence, such as failing to address a known safety hazard or providing incorrect information about lease terms, the PI policy can respond to the resulting claim. The policy covers defence costs and any damages awarded.

Because PI insurance operates on a claims-made basis, you need to maintain cover or purchase a run-off policy after selling your rent roll. Claims can be lodged years after the alleged error occurred. Run-off cover, typically for a period of seven years, ensures you remain protected against claims arising from work performed before the sale.

It depends on the policy wording. Some property manager PI policies are limited to management activities only, while others extend to cover property sales, auctions and associated advisory services. If your agency handles both management and sales, ensure your policy definition of professional services covers all activities you perform.

Professional indemnity (PI) insurance protects professionals and businesses against claims arising from negligent acts, errors, omissions or breaches of professional duty in the provision of services or advice. It covers legal defence costs, settlements and damages awarded against you. PI insurance operates on a claims-made basis, meaning the policy in force when the claim is made responds – not the policy in force when the work was performed.

Any professional who provides advice, designs, recommendations or services to clients should carry PI insurance. This includes accountants, architects, engineers, lawyers, financial planners, mortgage brokers, IT consultants, real estate agents, builders, health practitioners, management consultants and many more. For many professions, PI insurance is mandatory under Australian legislation or industry body requirements.

PI insurance premiums depend on your profession, annual revenue or fee income, claims history, limit of indemnity required and the scope of services you provide. A sole practitioner consultant might pay $500 to $2,000 per year for $1M cover, while a mid-size engineering or accounting firm could pay $5,000 to $20,000+ for $5M to $10M cover. High-risk professions like financial planning or building design attract higher premiums.

PI insurance typically covers legal defence costs (solicitors, barristers, court fees), damages or settlements awarded to the claimant, investigation costs from regulatory bodies, breach of professional duty, negligent acts or omissions, unintentional breach of confidentiality, loss or damage to client documents, and defamation arising from professional activities. Cover extends to past work through retroactive dates.

Yes, for many regulated professions in Australia. Mandatory PI insurance requirements apply to solicitors, financial advisers (AFSL holders), mortgage brokers, accountants (registered tax agents), architects, building practitioners in most states, real estate agents, migration agents, customs brokers, and various health practitioners. Requirements vary by state and professional body – check your specific obligations.

Professional indemnity covers financial loss caused by your professional advice or services – for example, an accounting error that costs a client money. Public liability covers physical injury or property damage caused by your business operations – for example, a client tripping over a cable in your office. Most professionals need both, but they cover fundamentally different risks.

PI insurance operates on a 'claims-made' basis, meaning the policy that responds is the one in force when the claim is first made or notified – not the policy that was in force when the work was performed. This is why continuous, unbroken cover is essential. If you change insurers or let your policy lapse, you may lose cover for past work. Run-off cover is available for professionals who retire or close their practice.

The limit of indemnity you need depends on your contractual obligations, regulatory requirements and risk exposure. Many contracts require $1M, $2M, $5M or $10M minimum cover. Regulatory requirements vary by profession – for example, AFSL holders have specific minimums set by ASIC. Consider your largest client contracts and the potential financial impact of a claim when selecting your limit.

Contact us at Shielded Insurance on 1800 97 98 99 or your insurer directly. With PI insurance, early notification is critical – you must notify your insurer of any claim or circumstance that could give rise to a claim as soon as you become aware of it. Late notification can jeopardise your cover. Never admit liability or attempt to settle a claim without insurer approval.

We access a broad range of Australian domestic markets, specialist underwriting agencies and international capacity including Lloyd's of London syndicates. This allows us to place cover for standard professions through to complex or hard-to-place risks. As brokers, we compare multiple options to find competitive and suitable cover for your profession and risk profile.