Australia is home to more than 46,000 real estate businesses. If yours is among them, you’ll know how tough working in and around the property industry can be.
The right insurance cover can make it easier to weather the ups and downs and overcome challenges that could otherwise see the firm you’ve fought hard to establish and grow, go to the wall.
So, what insurance do real estate businesses need? This is the cover that will protect you from some of the most common business risks.
The basics: Property, workplace injuries and public liability
If you own a premises, building insurance is often a must. It’s there to help cover the cost of relocating your operations and repairing the damage, in the event of disaster.
Property insurance, meanwhile, will help defray the cost of replacing lost, stolen or damaged equipment.
Also essential: public liability and workers compensation insurance to help cover the costs, should an employee or member of the public injure themselves while on your premises, or on the job.
Professional indemnity
“Historically, professional indemnity insurance was only recommended for accountants, lawyers, architects and other providers of professional services, but these days real estate agents must have it too”, explains Steadfast broker technical manager Michael White.
“One of the most common kinds of professional indemnity claims against a real estate agent is by a tenant who is injured at a rental residential property you manage. There’s a strong chance the tenant will make a claim against your agency, as well as their landlord”, White says.
Usually, the claim is based on allegedly unactioned maintenance requests.
“A tenant may report an electrical fault, for example, but, as an agent, you have limited authority to authorise a repair, should the landlord be unwilling to spend the money,” White explains.
If a hazard is left unrepaired and someone is injured as a result, multiple parties involved in the property's management may face legal action, including the agent overseeing the property.
Professional indemnity insurance may provide cover for such claims, provided your policy doesn’t specifically exclude personal injury and property damage.
Cyber
In 2025, cybercrime is a real and rising risk and local business owners of all stripes need to be on their guard.
The Australian Cyber Security Hotline received an average of 100 calls a day in the last financial year, according to the Australian Signals Directorate’s Annual Cyberthreat Report 2023-2024.
Recent years have seen real estate businesses become a prime target for bad actors, for two reasons. They hold large amounts of valuable personal information – think tenants’ personal ID and bank account details – and they facilitate high value transactions, when properties are bought and sold.
Incidents and attacks don’t just have the potential to disrupt your operations; remedying them can also cost you dearly, both reputationally and financially. In 2023-24, the average self-reported cost of a cyber-crime incident was $49,600 for small businesses, the Report reveals. For medium sized businesses, that figure rose to $62,800, while larger enterprises shelled out $63,600.
Hardening your high-tech defences will make your real estate business less attractive to hackers and cyber criminals.
And if you’re unfortunate enough to experience an attack, cyber insurance can help cover your losses and the cost of remediation.
Cover to protect your real estate business’ growth journey
Reviewing your business insurance will help you determine whether you have the right type and level of cover in place. If you’d like some help to clarify what’s included in your current policies, reach out to your Steadfast broker today.
Important notice - Steadfast Group Limited ABN 98 073 659 677 and Steadfast Network Brokers
This article provides information rather than financial product or other advice. The content of this article, including any information contained in it, has been prepared without taking into account your objectives, financial situation or needs. You should consider the appropriateness of the information, taking these matters into account, before you act on any information. In particular, you should review the product disclosure statement for any product that the information relates to it before acquiring the product.
Information is current as at the date the article is written as specified within it but is subject to change. Steadfast Group Ltd and Steadfast Network Brokers make no representation as to the accuracy or completeness of the information. Various third parties have contributed to the production of this content. All information is subject to copyright and may not be reproduced without the prior written consent of Steadfast Group Limited.
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Important notice - Steadfast Group Limited ABN 98 073 659 677 and Steadfast Network Brokers
This article provides information rather than financial product or other advice. The content of this article, including any information contained in it, has been prepared without taking into account your objectives, financial situation or needs. You should consider the appropriateness of the information, taking these matters into account, before you act on any information. In particular, you should review the product disclosure statement for any product that the information relates to it before acquiring the product.
Information is current as at the date the article is written as specified within it but is subject to change. Steadfast Group Ltd and Steadfast Network Brokers make no representation as to the accuracy or completeness of the information. Various third parties have contributed to the production of this content. All information is subject to copyright and may not be reproduced without the prior written consent of Steadfast Group Limited.