From 1 Jan 2011, all estate agents and salespersons are required to be covered by Professional Indemnity Insurance (PII). PII protects estate agents and salespersons, who can be held legally liable for claims arising from wrongful acts (such as negligent acts, errors, and omissions or breaches of professional duty) committed during the performance of professional services.
Estate agents are required to purchase a PII policy which covers both the entity and the salespersons.
Estate agents are to ensure that both the entity and all its salespersons are sufficiently covered. The CEA has some minimum requirements. Estate agents and salespersons can choose to purchase policies with a higher coverage.
The table below sets out the CEA's requirements:
Policy Wording: Negligence-based, Cost inclusive
|Category ||Minimum Indemnity Limit* ||Minimum Sub-limit for each salesperson ||Maximum Deductible (in respect of each claim against entity) ||Maximum Deductible (in respect of each claim against salesperson) |
|Sole-Proprietorship with only 1 salesperson ||$100,000 ||$100,000 ||$5,000 ||$5,000 |
|Non-sole-proprietorships with 1-10 salespersons or Sole-proprietorship with 2-10 salespersons ||$200,000 ||$100,000 ||$5,000 ||$5,000 |
|Estate agent with 11-30 salespersons ||$300,000 ||$100,000 ||$5,000 ||$5,000 |
|Estate agent with 31-50 salespersons ||$400,000 ||$100,000 ||$5,000 ||$5,000 |
|Estate agent with 51-500 salespersons ||$600,000 ||$100,000 ||$10,000 ||$5,000 |
|Estate agent with >500 salespersons ||$1 million ||$100,000 ||$20,000 ||$5,000 |
* The minimum indemnity limit can cover both the entity and its salespersons.
Estate agents and salespersons can purchase any PII policy which satisfies their business needs from any insurance company in Singapore as long as the minimum requirements above are met. Various insurance companies are offering a variety of PII packages in the market.
Here are some links which estate agents and salespersons can refer to for more information.
AVA Insurance Brokers Pte Ltd