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Why Migration Agents Need Insurance

Aug 03, 2022
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Insurance Claim Business Insurance Professional Indemnity Insurance Professional Services Insurance Migration Agents Insurance

Oftentimes, we think of insurance as a means to protect anything that is personal to us–our belongings, properties, and health among others. What we do not realize is that it can also safeguard our livelihood. From September 2019, under the Migration act 1958 and Migration Agents Regulations 1998, Professional Indemnity, Australian migration agents are required to have at least $250,000 worth of coverage.

What are the Liabilities of a Migration Agent?

Clients planning to relocate overseas seek the assistance of migration agents like you in navigating Australia’s immigration policies and processes. You prepare applications and ensure that they are correctly completed and submitted. The advice you give regarding application costs and suitable visas clients may apply for may also be used against you.

With more than 100 visas offered, you cater to people carrying different requirements, and this wide work scope increases the likelihood of mistakes and miscommunication. Having Professional Indemnity insurance may protect you in case a claim arises from your negligence, errors, or omissions.

How Does Professional Indemnity Insurance Protect Migration Agents?

Generally, Professional Indemnity insurance helps pay for legal expenses incurred from defending and settling claims. Depending on your policy, it may cover MARA complaints and claims arising from breach of contract or privacy. In addition, the costs of hiring consultants could be reimbursed. Since Professional Indemnity insurance also applies to other service providers such as life coaches, real estate agents, and engineers, brokers tailor policies according to the unique risks professionals face in their respective industries.

In line with this, some policies include run-off coverage, which covers claims filed due to errors, omissions, and acts that occurred in the past. This caters to professionals who have left or retired from their jobs as migration agents.

Why Do Migration Agents Need Insurance?

There is a reason why the Migration Act 1958 and Migration Agents Regulations 1998 require migration agents to hold insurance. You have the right to protect yourself from legal actions the same way clients have the right to hold you accountable for errors, whether they concern a document, application, or piece of advice. Some of the reasons migration agents need Professional Indemnity Insurance are:

Management Liability Insurance

Management Liability insurance is designed to provide protection to both the business and its directors or officers for claims of wrongful acts in the management of the business.

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Business Insurance

A business insurance pack can provide cover for your business premises and contents, against loss, damage, theft or financial loss from an insured interruption to the business.

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Business Package

Purchase up to six products under one Business Insurance Package.

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To uphold professional standards of conduct
- All professionals, regardless of the industry they belong in, have reputations to maintain. Holding the appropriate insurance coverage establishes your credibility, earns your clients’ trust, and portrays professionalism.

Protect yourself against lawsuits arising from errors or negligence
- Just like any other service provider, migration agents make mistakes. In the event that a client files a claim against you because of an application error or improper guidance on migration concerns, Professional Indemnity insurance covers financial losses resulting from legal actions.

Give yourself peace of mind
- One of the best ways to ensure that your business is protected in the event of an unforeseen circumstance is to have appropriate insurance policies in place.

Reach out to an insurance broker today to find out how you can protect yourself and your business from the unique risks you are exposed to as a migration agent.

General Advice Warning: This advice is general and does not take into account your objectives, financial situation or needs. You should consider whether the advice is appropriate for you and your personal circumstances. Before you make any decision about whether to acquire a certain product, you should obtain and read the relevant product disclosure statement.

All information above has been provided by the author.

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