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Professional Indemnity Claims Examples for the Property Sector

Managing Agent

A tenant, at one of the insured’s client’s properties under management, fell downstairs and injured himself. He claimed that the lights in the stairway did not work properly and that this had been previously reported. The tenant sued the landlord and the landlord sought to recover his loss from the insured, on the basis that it was the insured’s responsibility to inspect and maintain the common parts of the property. The insured had not documented their visits to the property or kept records of inspections making them vulnerable.

Property Manager

Claim made by blind tenant who fell over a collapsed wall, despite requests for managing agent to repair dilapidated wall. Claimant is claiming damages for personal injuries sustained.

The insured were able to show that they had asked their appointed facilities company to repair and make safe and thus were able to subrogate the claim.

Estate Agency

Claim made by purchaser of property, as property was detailed as having double glazing in estate agents’ particulars, but there was no double glazing. Claimant is claiming cost of installing double glazing. The matter was settled by an ex-gratia payment as the purchaser would have been able to see the lack of double glazing and should have raised the issue prior to completing.

Letting Agency

Insured did not obtain a guarantor when letting property. Tenant began to pay rent late, and then defaulted on several payments. Landlord is pursuing the letting agent for the outstanding rent, as the tenant has disappeared. The contract between landlord and managing company should be fully explained to clients so that they are aware of responsibilities.

Estate Agency

A buyer sued an estate agent for advertising a property in a brochure featuring an image that clearly showed the surrounding land forming part of the premises for sale. However, when the documents reached the buyer, it became apparent the land was not part of the premises and they sued the estate agent for the costs they had incurred in carrying out a survey and arranging their mortgage. The retainer/Contract should make clear that images and actual land registry records may differ, and it is the responsibility of the buyer to check what area is included in the purchase.

Investment Agent

It was alleged that a junior employee had informed third parties that an advisor acting for a wealthy client had been involved in fraudulent transactions involving multimillion pound properties, a comment that had no evidence behind it. The advisor made a claim against the estate agent for defamation. It is important to ensure that all employees are fully trained and mentored. The rules of GDPR should be strictly adhered to which would prohibit mentioning any unconnected individuals or companies.

Cox Mahon

Cox Mahon are specialist professional indemnity insurance brokers who have a team with

extensive experience in this complex area. Our role is to provide advice and guidance through the entire insurance buying and claims handling process. Unlike many of our peer / competitor brokers, we have a dedicated Claims department staffed by full time, experienced claims brokers.