FAQ about fidelity guarantee
FAQ about professional indemnity insurance ( PI )
FINANCE
FAQ about fidelity guarantee
Question : Who is insured ? Answer : All employees are covered on a blanket basis . Any person who is :
• Employed by you under a contract of service or apprenticeship .
• Hired by you , or seconded into your service , and whom you have the right , at all times , to control and direct in the performance of their work in the course of your business
Question : Do I need a fidelity fund certificate first ? Answer : No , all permanent estate agency staff qualify for fidelity guarantee . However , a valid FFC is required for professional indemnity insurance .
Question : What is the maximum limit of indemnity ? Answer : You can choose an amount of indemnity from R1 million to 10 million , in increments of millions .
FAQ about professional indemnity insurance ( PI )
Question : Why do I need PI cover if I run my business carefully ? Answer : Even if you have acted in full accordance with the law and professional standards , you will need to defend your position and actions in any legal claim against you , the costs of which can be onerous .
Liability claims can be complex , fraught and financially crippling , especially if your organisation has no experience or expertise in managing these legal proceedings .
If an estate agent has PI cover , the policy will not only provide the best legal representation but also pay the damages in terms of the legal defence and settlement awarded by a court of law in terms of the insured ’ s negligent act .
77 JUNE / JULY 2023 SA Real Estate Investor Magazine