What is professional indemnity insurance
Professional indemnity insurance protects professionals if they are found negligent or in breach of their professional duty. This is important, as if a third party like a client or customer claims your services or advice has caused damages, injury, or loss, you can be subject to hefty legal costs.
What does professional indemnity insurance cover
Professional indemnity (PI) insurance policies cover your business against mistakes and breaches (whether they are founded or not), as well as the cost of legal fees, claims of damages, investigation, and, in some cases, defending your business’ advice and conduct.
According to the new RERA regulations, Real Estate Professionals are advised to enter into a Professional Indemnity Insurance Scheme. This scheme Is currently compulsory for real estate Brokers, Valuers, Owners Association Managers and Property Managers.
The Minimum PI insurance cover required for real estate brokers is as follows:
Real Estate Brokerage (Individual): 50,000- BD (mandatory)
Real Estate Brokerage (Corporate): 100,000- BD.
The following members of the Bahrain Insurance Association (BIA) can provide appropriate schemes for the Real Estate Professionals.
In our helpdesk you can find more information and a few indicative scenarios for different cases