Independent Auctioneers

Insurance Packages for Real Estate Auctioneers

Don’t Put Your Business Under the Hammer

We know that working as a Real Estate Auctioneer brings with it a set of challenges and risks unique to the industry.  That’s why it’s so important to make sure you have the right coverage to protect your asset and livelihood – your business.

Professional Indemnity Insurance is specifically designed to protect anyone who provides advice to a third party and in return are paid for that advice.

Our PI insurance offering includes:

  • Set Limits of: $1,500,000 for any one claim and $3,000,000 in the aggregate.

Public Liability insurance protects you and your business against the financial risk of being found liable to a third party for death or injury, loss or damage of property or ‘pure economic’ loss resulting from your negligence.

  • Set Limit of $20,000,000 for any one occurrence and in the aggregate.

    1. Insured Name/Entity:

    Are you linked or contracted to any Real Estate Agencies?

    YesNo

    If Yes, please supply details:

    4. Please provide details of the Principal(s) of the Firm:
    Name in full of all Partners / Principals / Directors Qualifications Date Qualified This Practice Prior Practice
    5. Please state total numbers of:
    Principals/ Partners / Directors Other Professional staff
    Skilled and Technical Employees Administrative & clerical staff
    Skilled and Technical Contractors TOTAL

    6.Does the Firm belong to any Professional Associations?

    YesNo

    If Yes, please supply details:

    7.If a sole practitioner, does the Applicant have a locum arrangement in force for periods of absence from the office due to leave or sickness?

    YesNo

    8.Is the Applicant or any of its principals, directors, partners or employees or sub-contractors required to be licensed or registered under any government legislation or regulation?

    YesNo

    8.a) If Yes, please provide details of such license or registration:

    8.b) Are all such licenses / registrations current?

    9a. Please provide details of gross fees received for the following financial years:
    Activities Auctioneering 100%
    *Please note that this insurance ONLY provides cover in relation to real estate auctioneering services. If you require insurance to cover other activities (e.g. real estate valuations, appraisal, sale, settlement, property management or development) we will need to cover these under a separate policy. Please confirm you understand and accept.
    YesNo
    Fee Income Last Year Current Year
    Year End (Month / Year)
    Total Fees
    9b. Please provide a percentage split of your income by geographical area:
    NSW
    VIC
    QLD
    SA
    WA
    TAS
    ACT
    NT
    Overseas

    If you are a small business you may be eligible for the exemption from the requirement to pay NSW duty on certain types of insurance?
    (you are considered a small business if your aggregated turnover is less than $2 million.)
    For more information, visit www.revenue.nsw.gov.au/taxes/insurance/exemptions

    10.Are you exempt from NSW stamp duty?

    YesNo

    GUIDELINES TO SIGNING THE NSW STAMP DUTY EXEMPTION - SMALL BUSINESS DECLARATION
    WHAT IS THE NSW SMALL BUSINESS EXEMPTION?

    From 1 January 2018, NSW small businesses will be exempt from paying stamp duty on certain types of insurance.

    WHAT IS A SMALL BUSINESS?

    Revenue NSW has stated that: "You are a small business if you are an individual, partnership,
    company or trust that is carrying on a business, and the business has an aggregated
    tumover of less than $2 million. Aggregated turnover is your annual turnover plus the annual
    turnovers of any business entities that are your affiliates or are connected with you."

    WHICH INSURANCE TYPES WILL THE EXEMPTION APPLY TO?

    This exemption can be applied for NSW small businesses with one the following insurance types:

    • Commercial vehicle insurance
    • Commercial aviation insurance
    • Occupational indemnity insurance
    • Product and public liability insurance
    INSTRUCTIONS FOR APPLYING FOR AN EXEMPTION

    To receive the exemption, please complete this declaration declaring that you / your client are a small business. Email the completed declaration to (Insurer). (Whoever is the Insurer)

    PLEASE NOTE:

    (a) This declaration covers all policies issued to you during the financial year ended 30 June 2018.

    (b) If you are uncertain whether you classify as a small business, please speak to your financial adviser.

    (c) (Insurer) will place reliance on your declaration in charging the applicable insurance duty.

    (d) False declarations may result in penalties up to of $11,000 by Revenue NSW plus the insurance duty not paid and penal interest on that balance.

    (e) Revenue NSW may also be able to clarify your queries relating to the law and your obligations.

    (f) If you are a not for profit organisation already entitled to a NSW Stamp Duty Exemption, your premium is already exempt and the NSW Stamp Duty Exemption for Small Business is not relevant..

    NSW STAMP DUTY EXEMPTION – SMALL BUSINESS DECLARATION

    This declaration covers policies effected or renewed during the year ended 30 June 2018
    I hereby declare that I am a Capital Gains Tax small business entity (within the meaning of section 152-10 (IAA) of the Income Tax Assessment Act 1997 of the Commonwealth).
    I am a small business individual / partnership/ company and/ or trust, which is carrying on a business, and the business has an aggregated turnover of less than $2 million*

    You must check the box for Q10 to submit this form

    11.Has the Firm (or its predecessors) had any insurer decline a proposal, impose special terms or had a similar insurance cancelled or refused to renew?

    YesNo

    If Yes, please provide full details:

    12.Are you currently insured for Professional Indemnity and Public Liability insurance?

    YesNo

    If Yes, please confirm:

    Coverage Details Current Insurance Period
    Name of Insurer(s)
    Limit of Indemnity
    Retroactive Date
    Renewal Date

    Limits:

    • Professional Indemnity
    • $1,500,000 any one claim and $3,000,000 in the aggregate
    13. CLAIMS INFORMATION

    13a.After full enquiry has any claim been made against the proposer’s business or any principal, partner, director or employee whilst in this or any other business?

    YesNo

    If Yes, please provide details:

    13b.After full enquiry is the proposer aware of any circumstances or incident which has or could result in any claim being made against the proposer’s business, or any principal, partner, director or employee whilst in this or any other business?

    YesNo

    13c.After full enquiry, has any principal, partner, director of employee been subject to any disciplinary proceedings or actions for misconduct in a professional respect whilst in this or any other business?

    YesNo

    If Yes, what steps have been taken to prevent a recurrence?

    14. GENERAL INFORMATION

    a.After enquiry, has any person for whom insurance is now sought or for whom this proposed insurance would cover ever been the subject of disciplinary proceedings by any professional organisation?

    YesNo

    b.In the last complete financial year, did more than 20% of fee income derive from one client?

    YesNo

    c.In the last 5 years, has the firm merged with or acquired the business of any sole practitioner, valuation firm or any other business entity?

    YesNo

    d.Do you anticipate any material changes to the firm or its practice within the next 12 months

    YesNo

    If Yes to any of the above, please give full details (attached on separate Letterhead if appropriate):

    15.Are you linked or contracted to any Real Estate Agencies?

    YesNo

    If yes, please provide details:

    Declaration

    I hereby declare that:

    • I/we am authorised to complete this Proposal Form and to accept the quotation terms for this insurance on behalf of the Firm referred to in Question 1 (including on behalf of its partners, principals and directors); and
    • All answers to the questions contained in this Proposal Form are, AFTER ENQUIRY, true, correct and complete and that no material facts have been misstated, omitted or suppressed; and
    • I/we have diligently made all necessary and detailed enquiries to comply with the Duty of Disclosure; and
    • I/we have received the Important Notice at the beginning of this Proposal Form and I have read and understood the contents therein; and
    • I/we understand that, up until a contract of insurance is entered into, I am under a continuing obligation to immediately inform the Underwriters of any change in the particulars or statements contained in this Proposal Form or accompanying documents; and
    • Except where indicated to the contrary, I/we understand that any statement made in this Proposal Form (or Addendum or attachment hereto) will be treated by the Underwriters as a statement by all entities and all persons to be insured; and
    • I/we understand that the submission of this Proposal Form does not bind either the Underwriters or the Firm specified in Question 1 to enter into a binding contract of insurance.

    16.Please tick here to confirm you agree to the declaration

    YesNo