How much does Professional Indemnity Insurance cost for Real Estate Agents?

Professional Indemnity (PI) insurance is one of the most essential forms of cover for Real Estate Agents due to the potential for losses that can arise out of acts, errors or omissions from the professional services provided. Depending on the state you operate in, holding a minimum level of PI cover is often a requirement under state or territory legislation, or to become a member of your local Real Estate Institute.

The cost of PI insurance can vary greatly for Real Estate Agents, due to a number of key factors including:

  • Business turnover and size
  • The amount of insurance cover required
  • The individuals being covered – are they qualified for the job they are performing, and do they have a previous history of claims?
  • Individual claims history of the insured

We have put together a snapshot of how much Professional Indemnity insurance can cost for Real Estate Agents using data from BizCover policies sold during the 2016/17 financial year. The sample we analysed includes more than 250 Real Estate Agents in NSW that have ten or fewer employees.

We know, sometimes you just want a quick idea of how much your insurance is actually going to cost.  However, it’s important to note that the data included within this article was sourced from BizCover customer data during 2016/2017 and is intended as a guide only.  It may not reflect pricing for your particular business as individual underwriting criteria will apply.  Get a hassle-free quote for your business here.

What is the average premium for Professional Indemnity insurance?

On average, Real Estate Agents can expect to pay around $184.63 per month for Professional Indemnity insurance.

Below is the full breakdown:


*Data based on NSW BizCover customers

How does revenue affect the premium?

Generally, the higher the revenue your business generates, the higher your PI insurance premium will most likely be. For example, a real estate agency generating up to $200,000 could pay up to $154 per month, where as an agency earning between $200,000 to $500,000 could pay up to $196 per month.

This is mainly because a higher turnover indicates that your business is undertaking a greater amount of work, creating a higher exposure to more risks and greater chance that something may go wrong.

Below is the full breakdown:


*Data based on NSW BizCover customers

Do the number of employees affect the premium?

Similarly, the more employees you have can also demonstrate a higher volume of work, and with more people comes an increased risk of a claim occurring, meaning your premium is most likely to increase as your business grows in size.

Over fifty percent of Real Estate Agents who hold their PI insurance through BizCover are sole traders. They pay around $154.58 per month for their PI cover. However, those with three to five employees are paying between $252 to $286 per month.


*Data based on NSW BizCover customers

Does the level of cover affect the premium?

Fortunately, when it comes to Professional Indemnity insurance, the cost does not rise too significantly with an increase in the amount of coverage. Double the amount of cover does not necessarily mean double the premium.

According to BizCover customer data, $1 million is the most popular level of cover purchased, with the average monthly premium equating to $170.89. However, doubling the cover to $2 million only increases the premium between $195 to $215 per month.

It is important to note, that cost of Professional Indemnity insurance is not influenced by one factor alone, but a combination of key factors mentioned above.

Average monthly cost of Professional Indemnity insurance by level of cover

Coverage level Average monthly premium
$250k $140.32
$500k $146.87
$1 million $170.89
$1.5 million $215.23
$2 million $194.73
$2.5 million $159.15
$3 million $282.55
$4 million $246.92
$5 million $300.93
$10 million $327.69

*Data based on NSW BizCover customers