Gary Ward, Howden Insurance
Every day, buyers’ agents are doing what they do best for clients, sourcing the right property, negotiating hard, and protecting their buyers’ interests. But while you’re focused on the deal in front of you, four significant risk areas are quietly reshaping the professional landscape for BAs across Australia.
Risk sits at the core of my work as an insurance broker. These are the issues currently on my radar, and why they matter.
1. Anti-Money Laundering Compliance
This is the big one. From 1 July 2026, buyers’ agents (along with other real estate professionals) will come under direct federal oversight by AUSTRAC, entering an entirely new regulatory risk landscape. The rules are real, the deadlines are firm, and the penalties for non-compliance are material. Obligations will apply from day one.
Here’s the important caveat on the insurance side: while Insurance Policies can potentially cover certain investigation and legal defence costs, fines and penalties can be uninsurable under the law, depending on the nature and circumstances. Insurance may not be available to help. The most effective protection is to invest time, governance, and resources now to be fully compliant by the July deadline.
2. Cyber Risk — Cheap to Cover, Costly to Ignore
Buyers’ agents can’t trade without their systems and technology. A cyber event, such as a hack, ransomware attack, or a malicious third party accessing your network, can be catastrophic for your income and reputation. And the real estate industry is an attractive target, precisely because of the large sums involved in property transactions.
The exposures are broad: costs to respond to an attack, loss of income during downtime, liability to third parties whose data is compromised, and even theft of funds.
Sound cyber risk management is your first line of defence, but insurance is your critical second line.
The good news is that cyber cover is currently more affordable than ever. A quality policy gets you immediate access to incident response specialists. There are legal, forensic, and technical experts whose sole job is containment, recovery, and getting your business back up and running quickly. The cost of not having it far outweighs the premium.
3. The Investment Advice Grey Zone
This one often catches BAs off guard. When dealing with investment property transactions, it’s not uncommon for discussions to edge toward matters that could be perceived as investment advice, even where that isn’t the objective.
The problem is that many standard PI policies contain broad exclusions that strip out cover for claims arising from investment advice or opinions. If that exclusion exists in your policy and a client makes a claim against you regarding this, you could be completely unprotected.
The solution starts with clear engagement terms, well-structured disclaimers and disciplined language around the scope of your services. It’s worth checking whether your current PI policy includes an exclusion of this nature. If it does, address it. Specialist products, including the REBAA PI offering through Howden, can remove this exclusion for BAs who hold QPIA accreditation.
4. Directors’ Personal Liability
As a BA, PI insurance is essential, but it doesn’t cover everything. Directors of Pty Ltd companies can be held personally liable for their actions and decisions, and in the right circumstances, personal assets – including the family home – can be at risk. Directors carry hundreds of obligations across corporations’ law, workplace health and safety, employment, privacy, and beyond. Most underestimate the breadth of those duties.
Large corporates and experienced non-executive directors won’t sit on a board without Directors & Officers (D&O) or Management Liability insurance in place. By contrast, uptake in the SME real estate sector has been relatively limited. SMEs tend to assume it won’t happen to them. Management Liability insurance is currently very affordable and provides broad protection. If you operate through a company and don’t have this cover, it’s worth a conversation with your broker.
The insurance market right now is genuinely favourable for buyers’ agents. Conditions are soft, premiums are competitive, and it’s an ideal time to review and bolster your program. But markets turn, and risks don’t wait for convenient timing. If any of these four areas prompt a question, that question is worth asking sooner rather than later.
Gary Ward is a specialist insurance broker with more than 15 years’ experience in the insurance industry and leads Howden Insurance’s national practice for property professionals and the real estate sector. Howden will have a presence at the REBAA National Conference, 5–6 August, Crowne Plaza, Melbourne.
Any advice or recommendations we have provided are general in nature only and do not take into account your individual objectives, financial situation or needs. Each insurance policy operates strictly in accordance with its specific policy wording and schedule. You should carefully review the terms, conditions and exclusions of any policy to ensure it meets your individual needs and requirements.
The information regarding the insurance products, the market and their availability was current at the time of publication. No representation is made as to its continued accuracy or completeness, and no responsibility is accepted for any reliance placed on the content after the publication date. If you have any questions regarding your insurance program, please do not hesitate to contact the Howden Team on 1300 525 439.
