Professional Indemnity Insurance for Estate Agents: How to Compare Policies Properly

For many estate agents, professional indemnity cover is something that gets reviewed once a year. A few quotes come in. One is selected. The paperwork is filed. Then everyone moves on.

But PI cover should never be treated like a routine admin renewal.

The property market is high value and high pressure. Buyers and sellers are emotionally invested. Landlords want security. Tenants want fairness. And when expectations aren’t met, complaints can escalate quickly.

Even where your agency has acted professionally, disagreements can turn into formal disputes. If a client believes your advice led to financial loss, you could face a claim. Legal fees alone can be expensive.

This is why comparing PI policies properly matters. A lower premium is not always a better deal. The most important question is whether the cover matches the risks your agency faces in day-to-day work.

This guide breaks down what to look for, how to compare policies fairly, and the common mistakes estate agents make when selecting cover.

Step 1: Compare policies based on what you actually do

Before reviewing quotes, get clear on your business activities.

Different agencies have completely different exposures. A single-branch sales agency has a different risk profile to a multi-branch firm that offers lettings, management, and rent collection.

Ask yourself:

• Are you involved in sales, lettings, or both?
• Do you provide property management services?
• Do you handle client money or deposits?
• Do you provide written valuation advice and pricing strategy?
• Do you operate under multiple negotiators and teams?
• Do you work with premium or higher value properties?
• Do you refer clients to brokers, solicitors, or other services?

Your PI policy must reflect these realities. If the insurer believes you are “sales only” but you also manage tenancies, that can create complications later.

Step 2: Understand how PI cover responds (claims-made vs incident-based)

This is one of the most misunderstood parts of PI cover.

Most PI policies operate on a “claims-made” basis. That means the policy responds when the claim is made, not when the work was carried out.

So if you advised a vendor in 2024 and the complaint becomes a formal claim in 2026, it is the 2026 policy that usually matters.

Why it affects comparisons

If you switch insurers without careful review, you can accidentally create a gap.

When comparing policies, always check:

• Whether “prior acts” are covered
• Whether a retroactive date applies
• Whether continuity is protected when switching insurer
• What happens if the business closes or sells (run-off cover)

This is not just technical wording. It can determine whether your business is protected at all.

Step 3: Limit of indemnity is not just a number

Most agencies compare limit levels and choose based on budget.

But the structure matters as much as the limit itself.

Check:

• Limit level (e.g., £1m / £2m / £5m)
• Whether cover is per claim (“any one claim”) or annual total (“aggregate”)
• Whether legal defence costs are included within the limit

Why this matters in practice

A £1m limit may sound fine, but if costs come out of that same £1m, and legal fees rise quickly, your available settlement cover could shrink.

If the policy is in aggregate and you have multiple claims in a year, the limit reduces with each one.

For multi-branch agencies, aggregate policies can be a risk.

Step 4: Always review exclusions (this is where cover becomes weak)

Two PI quotes can look identical. The premium can be similar. The limits can match.

But exclusions can make one policy significantly weaker.

When comparing policies, look carefully for exclusions related to:

• Misrepresentation and property particulars
• Leasehold-related issues and disclosures
• Contractual liability disputes
• Referral fees, commissions, or introductions
• Lettings, management, and compliance work
• Data protection and cyber incidents
• Poor documentation / missing record keeping

This is critical because many PI claims start from property descriptions and advice disputes.

If the policy wording excludes those areas, you may technically have PI cover, but not meaningful protection.

This is why professional indemnity insurance for estate agents must be compared based on the work you do, not just the insurer or price.

Step 5: Excess levels can change the true cost of a policy

Excess is what the agency pays per claim.

A cheaper premium can be misleading if the excess is very high.

Check:

• Excess level per claim
• Whether excess changes by type of claim
• Whether excess applies to defence costs
• Whether excess applies as soon as a claim is notified (even if unfounded)

If your excess is £5,000 and you face two complaints that turn into claim notifications, you might pay £10,000 before insurance even starts supporting you.

So premium alone is not the real cost.

Step 6: Claims support is often more valuable than compensation

In estate agency, many disputes are not “clear-cut negligence”. They are messy disagreements.

Claims can begin as:

• A vendor complaint
• A buyer allegation
• A landlord dispute
• A redress escalation
• A solicitor letter

A policy that provides strong claims support helps you respond correctly early, which can prevent escalation.

When comparing insurers, ask:

• How quickly do they respond to notifications?
• Do they provide specialist solicitors?
• Are they experienced with estate agency claims?
• Do they support early resolution?
• Do they cover redress-related disputes?

A good insurer can protect your reputation by helping you manage the situation properly from the start.

Step 7: Check whether cover still applies if your business changes

Agency structures change all the time. This needs to be reflected in policy comparison.

Check policy terms regarding:

• Cover for past employees (important when negotiators leave)
• Cover for temporary or contract staff
• Cover when branches open or close
• Cover during mergers or acquisitions
• Run-off cover options (if the agency closes)

Claims often surface months later. Sometimes years later. Business change is not an excuse insurers accept unless cover is properly in place.

Step 8: Use compliance standards to strengthen your position

A well-run business has fewer disputes. It also handles claims better.

Insurers often consider:

• Complaint procedures
• AML compliance systems
• Record keeping standards
• Staff training
• Internal auditing of key processes

Step 9: A simple comparison checklist (use this for every renewal)

Here is a practical checklist you can use when reviewing quotations:

A) Does it cover your activities?

• Sales: Yes / No
• Lettings: Yes / No
• Property management: Yes / No
• Client money handling: Yes / No
• Referral activity: Yes / No

B) Cover structure

• Limit: £___
• Any one claim or aggregate: ___
• Defence costs inside/outside limit: ___

C) Key exclusions

• Misrepresentation excluded: Yes / No
• Leasehold matters excluded: Yes / No
• Cyber/data excluded: Yes / No
• Compliance-related exclusions: Yes / No

D) Cost and excess

• Premium: £___
• Excess: £___
• Excess applies to defence costs: Yes / No

E) Continuity

• Claims-made confirmed: Yes / No
• Retroactive date: ___
• Prior acts included: Yes / No
• Run-off options: Yes / No

This approach prevents you choosing based on price alone.

Final thoughts

PI cover is not only about “having insurance”. It is about protecting the stability and reputation of your business.

Comparing PI policies properly means looking beyond the headline numbers. It means assessing the exclusions, continuity, claims support, and whether the policy matches your services.

The right policy strengthens your ability to operate confidently in a complex property market.

And it ensures that if a dispute does arise, you have the protection and support your agency needs.