New South Wales Consolidated Regulations

PROPERTY AND STOCK AGENTS REGULATION 2022 - REG 12

12 Professional indemnity insurance--the Act, s 22

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

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

(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 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 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) The policy must provide cover of at least--

(a) $1 million for any one claim, and

(b) $3 million in the aggregate for all claims made during the period of insurance.

(4) The amounts referred to in subsection (3) are inclusive of all costs incurred or payable by the claimant in connection with the claim, including legal costs.

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

(6) A licensee is not required to be insured under this section in relation to civil liability arising in the conduct of either of the following activities--

(a) commercial property agency work in relation to property with a value greater than $10 million,

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

(7) An indemnity provided to a licensee by its affiliate must cover--

(a) claims arising from a type of civil liability referred to in this section, and

(b) an amount equivalent to the amount of cover that is otherwise required for claims under this section.

(8) In this section--

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

"civil liability" includes liability for personal injury.

"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.