Real Estate and Strata Professional Indemnity Insurance — Endorsement

Application

This endorsement attaches to and forms part of the Meridian Professional Indemnity Insurance wording, version 1.5.0-DRAFT (document reference 2026/PI/0001), referred to here as the base wording. It changes the base wording only as set out below. All other terms, conditions, exclusions and limits of the base wording continue to apply.

Words defined in the base wording have the same meaning in this endorsement. Where this endorsement and the base wording conflict, this endorsement applies to the extent of the conflict.

The same terms are published as a single integrated wording, Real Estate and Strata Professional Indemnity Insurance, version 1.1.0-DRAFT. Both documents are generated from the same source and have the same effect.

Replaced: Professional services

The definition of Professional services in the base wording is deleted and replaced with the following.

Professional services

The following services provided to a third party for a fee or commission:

(a) the sale, purchase, leasing and management of real property, including residential, commercial, industrial and rural property;

(b) the management of strata and community schemes, including acting as strata managing agent;

(c) stock and station agency, including the sale of livestock and rural property;

(d) auctioneering;

(e) arranging general insurance as an authorised representative, where shown in the schedule; and

(f) any other service shown in the schedule as a professional service.

Appraisals and market assessments of the likely selling price or rent of a property are part of these services.

Added: Dishonesty of Employees and Agents

The following extension is added to the base wording, after the First-Party Dishonesty extension.

Dishonesty of Employees and Agents

Despite the Deliberate and Dishonest Acts exclusion, the cover for dishonesty of your employees under the Claims Against You clause also applies to the dishonest or fraudulent conduct of your agents, including contractors, sub-agents and assistant agents acting on your behalf, where you are legally liable for that conduct to a claimant who did not take part in it. That exclusion otherwise continues to apply, including to an insured person who committed, condoned or participated in the conduct.

This extension does not apply to conduct described in the Trust Money Taken by Principals exclusion.

Added: Franchisor's Indemnity

The following extension is added to the base wording, after the Predecessor Practices extension.

Franchisor's Indemnity

If you operate under a franchise agreement that requires you to insure the franchisor, and the franchisor is named in the schedule, we will cover the franchisor for a claim against it arising from your professional services, as if the franchisor were an insured.

This extension covers the franchisor only for its liability for your acts, errors or omissions, and not for its own conduct.

Added: Rent Roll Acquisitions

The following extension is added to the base wording, after the Franchisor's Indemnity extension.

Rent Roll Acquisitions

If you acquire a rent roll or strata management rights, we will cover you for a claim arising from the management of a property in that rent roll or scheme before you acquired it, to the extent that you are legally liable for it as the successor to the vendor, if you told us about the acquisition in your proposal or within 30 days after it.

For a claim under this extension, the retroactive date does not apply to the management of the property before you acquired the rent roll or rights. The Prior Known Circumstances exclusion and the rest of this policy continue to apply. If another insurance policy also covers the claim, the Other Insurance provision applies; this extension does not make this policy excess of that other insurance.

Added: Tribunal Proceedings

The following extension is added to the base wording, after the Rent Roll Acquisitions extension.

Tribunal Proceedings

An application to a civil and administrative tribunal of a state or territory seeking compensation from you, or an order that you pay money, is a claim within paragraph (b) of the definition of Claim.

Added: Formal Valuations

The following exclusion is added to the base wording, after the Contractual Liability exclusion.

Formal Valuations

Arising from a formal valuation of real property, unless the valuation was prepared by a person registered or certified as a valuer where the law requires it, and is shown in the schedule as a professional service.

This exclusion does not apply to an appraisal or market assessment of the likely selling price or rent of a property.

Added: Trust Money Taken by Principals

The following exclusion is added to the base wording, after the Deliberate and Dishonest Acts exclusion.

Trust Money Taken by Principals

For money held in trust that is misappropriated by a principal, director or licensee in charge of your business, or with their knowledge — but only to the extent that a Final adjudication establishes the misappropriation. Until then, we will advance defence costs under the Defence Costs provision. If a Final adjudication then establishes the misappropriation, the defence costs advanced for it must be repaid, as that clause provides.

This exclusion does not apply to an insured person who did not commit, condone or know of the misappropriation. That protection applies separately to each insured person.

[WP REVIEW: confirm whether this exclusion is a permitted exclusion under the NSW licence insurance condition, and under the requirements of any other state.]

Real Estate and Strata Endorsements

The following endorsements apply to this policy only when the schedule shows that they apply.

An endorsement does not apply to the extent that a law requiring you to hold this insurance does not permit the cover it removes to be excluded or limited.

Payment Redirection

Despite the Cyber Event exclusion, we will pay:

(a) your liability to a client or other party; and

(b) your direct loss of money held in trust,

where money you hold or control is paid to a third party because of a fraudulent instruction that appears to come from a client, a party to a transaction, or a supplier.

In assessing a claim under this endorsement, we consider whether, before making the payment, you confirmed any new or changed payment details by calling the person who appeared to give the instruction on a telephone number that you already held and did not obtain from the instruction. This is a factor in our assessment. It is not a condition of cover. If you did not confirm the details, we may reduce what we pay only by the amount that fairly represents the extent to which that failure caused or contributed to the loss. We will not refuse a claim only because you did not confirm the details.

The most we will pay for all losses under this endorsement in the policy period is the sub-limit shown in the schedule for this endorsement, which is part of the limit of liability.

Commercial Property Value Exclusion

We do not cover any claim, loss or liability arising from services for a commercial or industrial property, or a portfolio of such properties in one transaction, with a value of more than the amount shown in the schedule for this endorsement (or $10,000,000 if no amount is shown).

This endorsement does not apply to the extent that the law requiring you to hold this insurance permits an exclusion of this kind only above a higher amount, or does not permit it.

[WP REVIEW: confirm whether the NSW regulation prescribes the permitted threshold, so that the amount shown in the schedule cannot be lower.]

Strata Defects Advice Exclusion

We do not cover any claim, loss or liability arising from advice you give about building defects in a strata or community scheme, or about their rectification, other than passing on advice from a qualified building professional.

This endorsement does not apply to a claim that you failed to notify the owners corporation of a defect, or to arrange an inspection, when your agreement required it.

Business Broking

Business broking, which means acting as agent in the sale or purchase of a business, including any real property or lease included in the sale, is a professional service under this policy, if the person who provides it holds any licence the law requires.

Off-the-Plan Sales Sub-limit

For all claims arising from the sale of property off the plan, the most we will pay in total, including defence costs, is the sub-limit shown in the schedule for this endorsement. The sub-limit is part of, and not in addition to, the limit of liability.

Livestock Sales Injury and Damage Exclusion

Despite the exception in the Bodily Injury and Property Damage exclusion, we do not cover any claim for death, bodily injury or property damage caused by livestock at a sale, yard or property where you are conducting or preparing for a sale. This exposure is designed to be covered under a public liability policy.