Insurance Complaints Put Policy Clarity Back on the Agenda

For real estate professionals, the lesson is practical rather than theoretical. An agency may buy cover to protect against a negligence allegation, an injury at an open home, stolen laptops, a cyber incident or damage to leased premises, but the real value of that cover is tested when a claim is lodged. If the policy wording is unclear, the sum insured is too low, the excess is higher than expected, or an exclusion applies, the business can still face cash flow pressure and reputational stress.

This is especially important for property managers and agency principals because their work often involves urgent decisions, sensitive client information and high-value assets. A landlord dispute, trust account concern, tenant injury, lost keys incident or data breach can quickly involve several parties. Where responsibilities are not well documented, insurers may need more time to assess liability, which can add to the pressure on staff and clients.

Agencies can reduce this risk by treating insurance as part of governance, not simply as an annual renewal task. Useful steps include:

• checking that professional indemnity limits reflect the size and type of work being performed;
• reviewing public liability exposure across inspections, auctions and open homes;
• confirming cyber cover responds to phishing, compromised credentials and privacy notification costs;
• keeping asset registers current for laptops, signage, phones, security systems and office equipment;
• recording incidents early, even where a formal claim has not yet been made.

It is also worth asking how a policy will operate in a real claim scenario. Who must be notified first? What evidence will be required? Are subcontractors, casual staff and authorised representatives covered? Are defence costs included within the policy limit or paid in addition? These details can make a material difference when an agency is under pressure.

Before renewal, agency owners may benefit from using a structured process to estimate appropriate sums insured and then discussing the results with a licensed adviser or broker. The goal is not only to buy cover, but to understand how it should respond when a client complaint, accident or operational disruption becomes a claim.