Professional Indemnity Insurance for Agents
What are the requirements?
UKALA require all Members to provide evidence of adequate Professional Indemnity Insurance cover for their Business. This requirement ensures that your Business is protected against compensation sought by a client if you have made mistakes or are proven to have been negligent in some or all of the services that you provide for them. Professional Indemnity Insurance cover must also provide cover for fidelity (staff dishonesty) and legal costs.
Members are required to have and maintain appropriate Professional Indemnity Insurance cover for their Business for the duration of their Membership.
Your Professional Indemnity Insurance Cover must meet the UKALA minimum limits of indemnity for it to be acceptable to us and must include provision for cover:
a. that is on a civil liability basis
b. that includes claims arising from dishonesty and fraud by a Principal, Partner or Director of the Business, up to the full limit of indemnity
c. that provides indemnity arising out of all work carried out since inception of the Business
d. that provides cover for liability arising out of all aspects of your Business, not just lettings and property management
What are the limits of cover?
The minimum limit of indemnity must be:
a. £100,000 for Members whose fee income in the last financial year did not exceed £99,999
b. £250,000 for Members whose fee income in the last financial year exceeded £100,000 but was no more than £199,999
c. £500,000 for Members whose fee income in the last financial year exceeded £200,000 but was no more than £399,999
d. £1,000,000 for Members whose fee income in the last financial year exceeded £400,000 but was no more than £999,999
e. £2,000,000 for Members whose fee income in the last financial year exceeded £1,000,000
The uninsured excess shall not be more than 2.5% of the limit of indemnity or £10,000 whichever is greater.
Any Business applying to become a Member must meet the minimum sum insured stated earlier according to the level of your annual fee income. If the Business is authorised and regulated by the Financial Conduct Authority (FCA) then their minimum limit of indemnity should comply with the minimum Professional Indemnity Insurance cover required by FCA.