New South Wales Consolidated Regulations

PROPERTY AND STOCK AGENTS REGULATION 2014 - REG 10

10 Professional indemnity insurance

(1) A licensee must be insured under a policy of professional indemnity insurance in force with respect to the licensee, or the licensee's employer, that complies with the requirements of this clause.

Note : Under section 22 of the Act it is a condition of a licensee's licence that the licensee be insured as required by this clause.

(2) The policy must provide cover for the following types of civil liability arising in the conduct of an agency business--

(a) liability arising from any acts or omissions of the licensee that constitute--

(i) negligence, or

(ii) misleading or deceptive conduct, or

(iii) breach of professional duty, or

(iv) unintentional defamation, or

(v) unintentional interference with intellectual property rights,

(b) vicarious liability arising from any acts or omissions of an employee, agent or other person engaged in the agency business that constitute--

(i) negligence, or

(ii) misleading or deceptive conduct, or

(iii) breach of professional duty, or

(iv) defamation (for which the claimant is not at fault), or

(v) interference with intellectual property rights (for which the claimant is not at fault), or

(vi) fraud or dishonesty by the employee, agent or other person (for which the claimant is not at fault).

(3) To avoid doubt, civil liability includes liability for personal injury.

(4) The policy must provide cover of not less than $1 million for any one claim and not less than $3 million in the aggregate for all claims made during the period of insurance.

(5) Amounts referred to in subclause (4) are inclusive of any costs incurred or payable by the claimant in connection with the claim (including legal costs).

(6) A licensee is required to be insured under this clause only if the licensee engages in activities for which a licence is required under the Act.

(7) A licensee is not required to be insured under this clause in respect of civil liability arising in the conduct of either of the following activities--

(a) commercial property agency work with respect to any property that exceeds $10 million in value,

(b) commercial property agency work carried out by a corporation on behalf of an affiliate that has indemnified the corporation against claims in accordance with this clause.

(8) An indemnity provided to a corporation by its affiliate must cover--

(a) any claim arising from a type of civil liability referred to in this clause, and

(b) an amount equivalent to the amount of cover that would otherwise be required for such claims under this clause.

(9) In this clause--

"agency business" means a business referred to in section 8 (1) of the Act.

"employer" of a licensee means a person who employs or otherwise engages the licensee to perform services for which a licence is required under the Act.

Note : Insurers must be authorised to provide insurance under the Insurance Act 1973 of the Commonwealth.