Do Real Estate Agents Need Public Liability Insurance in Australia?
If you’re a real estate agent or run a property management business, you already know how busy life can get — listing properties, managing tenants, organising inspections, and closing sales. But what about protecting yourself and your agency if something goes wrong?
One of the most common questions we hear is: “Do real estate agents need public liability insurance in Australia?” The short answer is yes — and here’s why.
What Is Public Liability Insurance?
Public liability insurance protects your business if someone is injured or their property is damaged as a result of your work. It covers legal costs, compensation payments, and associated expenses if a third party makes a claim against you.
For real estate agents, this type of insurance is particularly important because your work involves constant interaction with the public — whether at your office, at open homes, or out on property inspections.
Why Real Estate Agents Need Public Liability Insurance
Here are some everyday scenarios where public liability insurance could protect you:
Office visits: A client trips on a loose rug or slips on a wet floor in your agency’s reception.
Open homes: A visitor trips on uneven steps while attending a property inspection.
Property management: While showing a rental property, a tenant’s personal item is accidentally damaged.
Signage and equipment: A signboard falls and damages a nearby car or injures a passer-by.
Without insurance, you or your agency may be personally responsible for paying medical costs, repair bills, or legal defence expenses — which could run into tens of thousands of dollars or more.
Is Public Liability Insurance Mandatory for Real Estate Agents?
In many cases, yes. While the exact rules vary between states and territories, public liability insurance is often:
A requirement for leasing office premises (landlords may ask for proof of cover).
Part of professional licensing obligations depending on your jurisdiction.
Expected by clients and business partners as a sign of professionalism and reliability.
Even when it’s not strictly mandated, operating without public liability insurance is a serious financial risk.
How Much Does Public Liability Insurance Cost for Real Estate Agents?
Premiums can vary based on several factors, including:
The size of your agency (solo agent vs multi-office business).
Annual turnover and number of employees.
The types of services you provide (e.g. sales only vs property management).
Location and risk exposure.
On average, public liability insurance for real estate agents in Australia is affordable compared to the potential cost of an uninsured claim. The best way to know your premium is to request a tailored quote.
Public Liability vs Professional Indemnity Insurance
Many agents confuse public liability insurance with professional indemnity insurance — but they protect against very different risks.
Public Liability Insurance → covers injury or property damage to third parties (physical risks).
Professional Indemnity Insurance → covers claims of negligence, errors, or advice that causes financial loss to a client (professional risks).
Most real estate businesses need both types of insurance to be fully protected.
Public Liability Insurance and Cyber Risks
Another growing risk for real estate agencies is cyber crime. While not covered under a standard public liability policy, it’s worth considering cyber insurance if your agency handles sensitive client data (such as contracts, ID documents, or bank details).
Together, these three types of cover — public liability, professional indemnity, and cyber insurance — form the core of a strong insurance package for real estate agents.
Frequently Asked Questions
Q: Do real estate agents in Australia legally need public liability insurance?
A: In many cases, yes — especially if required by your lease or licensing body. Even if it’s not mandatory in your area, it’s strongly recommended for financial protection.
Q: How much public liability cover should a real estate agency have?
A: Most policies start from $5 million cover, with options for $10 million or $20 million depending on your agency’s needs and client requirements.
Q: Is public liability insurance tax-deductible?
A: Yes. As a business expense, your insurance premiums are generally tax-deductible.
How to Get Public Liability Insurance for Your Real Estate Agency
The best way to secure the right cover is through an experienced insurance broker who understands the real estate industry. At Design Cover Insurance Brokers, we compare policies from trusted Australian insurers and tailor cover to your agency’s needs.
Whether you’re a sole operator or manage a large team, we’ll help you protect your business against the unexpected.
👉 Ready to get started? Request a Public Liability Insurance quote today or call us on 0419 550 677.
Final Word
So, do real estate agents need public liability insurance in Australia? Absolutely. It’s not just a box to tick for licensing or leasing purposes — it’s a vital safety net that protects your reputation, finances, and future.
Don’t leave your agency exposed. Get the right insurance cover in place and focus on what you do best: helping clients buy, sell, and manage properties with confidence.
Design Cover Insurance Brokers – Protecting Real Estate Agents Across Australia
Public Liability Insurance
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