What is the primary purpose of professional indemnity insurance for property agents?

Professional indemnity insurance for property agents is primarily designed to protect them against claims of negligence or breach of duty. This type of insurance is crucial because property agents have a significant responsibility to their clients. When agents provide advice, manage transactions, or handle sensitive information, there is always a risk that they could inadvertently make a mistake or overlook important details. If a client believes they were harmed due to such errors, they may file a claim against the agent.

Having professional indemnity insurance means that if a claim arises, the insurance will cover legal costs, settlements, or any damages awarded, thereby protecting the agent's financial stability. This coverage is essential for maintaining trust and professionalism in the property industry, allowing agents to perform their duties confidently, knowing they are protected against potential legal repercussions stemming from their professional conduct.