Requirements for entities conducting business to have Professional Indemnity Insurance to be licensed
Property Agents that conduct business must have professional indemnity (PI) insurance that indemnifies the property agent against any liability that the property may incur during his or her business as a property agent.
The PI insurance cover must cover claims by clients and people who are not clients of the property agent and claims arising from any act, default, omission, neglect, or defalcation by the property agent and by any person employed by or acting on behalf of the property agent.
Current minimum level of PI insurance cover required
The minimum level of PI insurance cover required to be licensed in Tasmania is:
New Policy including changes to minimum level of PI Insurance cover required
As part of its ongoing commitment to safeguarding the public interest and ensuring high professional standards, the Property Agents Board has recently endorsed a new PI Insurance Policy. Amongst other things, it confirms that property agents must provide to the Board a Certificate of Currency evidencing PI insurance held, changes to the minimum level of cover required, and details processes when PI insurance is not held.
For new entities seeking to be licensed from 1 January 2026 and PI insurance renewals occurring in 2026 calendar year PI insurance will need to meet the following levels:
You can read more about these changes in the Property Agent Board's PI Insurance Policy, available here.
Property Agents that conduct business must have professional indemnity (PI) insurance that indemnifies the property agent against any liability that the property may incur during his or her business as a property agent.
The PI insurance cover must cover claims by clients and people who are not clients of the property agent and claims arising from any act, default, omission, neglect, or defalcation by the property agent and by any person employed by or acting on behalf of the property agent.
Current minimum level of PI insurance cover required
The minimum level of PI insurance cover required to be licensed in Tasmania is:
- All real estate agents and property managers conducting business must hold a minimum PI insurance cover of $500,000; and
- All general auctioneers conducting business must hold a must hold a minimum PI insurance cover of $250,000.
New Policy including changes to minimum level of PI Insurance cover required
As part of its ongoing commitment to safeguarding the public interest and ensuring high professional standards, the Property Agents Board has recently endorsed a new PI Insurance Policy. Amongst other things, it confirms that property agents must provide to the Board a Certificate of Currency evidencing PI insurance held, changes to the minimum level of cover required, and details processes when PI insurance is not held.
For new entities seeking to be licensed from 1 January 2026 and PI insurance renewals occurring in 2026 calendar year PI insurance will need to meet the following levels:
- All real estate agencies/property management conducting business must hold a minimum PI insurance cover of $2 million for any one event.
- All general auctioneers conducting business must hold a minimum PI insurance cover of $1million for any one event.
You can read more about these changes in the Property Agent Board's PI Insurance Policy, available here.