When something goes wrong in property management – a slip and fall, a maintenance dispute, or an alleged mismanagement issue – it’s often the policy excess that really stings. Even when you’ve tried to do everything right, you can still be left out of pocket.

One of the standout benefits of Aon’s Professional Indemnity (PI) insurance for real estate is the potential to have your excess waived on eligible property management claims, where certain risk management criteria are met. For many agencies, that can mean real, tangible savings when it matters most.

To unpack how this works in practice, Peter Lynch from Aon sat down with Michael Gapes, Partner at Carter Newell Lawyers. Carter Newell has operated Aon’s professional indemnity legal hotline for over 30 years, and Michael has been closely involved for more than two decades, overseeing and triaging the team that supports real estate professionals when claims arise.

In this video, Peter and Michael explore:

• The five key requirements that may help agencies to qualify for a nil excess on property management claims

• The range of claims where the excess waiver can potentially apply – from slip and fall incidents to mismanagement and paperwork errors

• What “systems, processes and documentation” can look like in day-to-day property management

• Some common reasons agencies may not qualify for the nil excess benefit

• How file quality and record keeping may have improved since the waiver was introduced, and what that could mean for today’s principals and property managers

Whether you’re already an Aon client or you’re hearing about this benefit for the first time, this short discussion explores how good risk management may help support both your professional standards and your bottom line.

As Peter and Michael highlight, the excess waiver isn’t about adding new burdens – it’s about doing what good property managers should already be doing and being able to demonstrate it on file. In practice, that can mean:

• Using an appropriate standard property management agreement

• Keeping thorough inspection records that align with state or territory legislation

• Properly documenting repair and maintenance requests

• Showing that repairs and maintenance are acted on in a timely way

• Engaging suitably qualified, licensed and insured contractors where required

Agencies that have these systems embedded – and can evidence them – may be eligible to have their excess reduced to nil on a range of property management claims.

For principals, this isn’t just about compliance – it’s about protecting your business and its cash flow. On larger claims, having the excess waived may result in a significant saving, reinforcing the value of disciplined processes, good governance and clear documentation across your rent roll.

• If you’re an existing Aon client, consider using the five criteria discussed in the video as a quick health check on your current property management systems and file quality. Speak with your usual Aon contact if you’d like to understand how this benefit applies to your specific program.

• If you’re not currently insured with Aon but want to explore PI cover that may reward strong risk management, contact Aon or speak with your industry association about how the Aon Real Estate PI offering may be able to support your business.

By tightening your systems today and understanding how the excess waiver works, you may help place your agency in a stronger position when a claim arises – both from a risk management and a financial perspective.

Our team can help you:

• Understand how the Excess Waiver feature works in practice

• Review your current risk management procedures against policy conditions

• Explore whether Professional Indemnity Insurance arranged through Aon is suitable for your business

Speak to one of our dedicated Real Estate Brokers today on 1300 734 274 or via email at [email protected]

© 2026 Aon Risk Services Australia Limited ABN 17 000 434 720 | AFSL 241141 (Aon)
The information contained in this communication is general in nature and should not be relied on as advice (personal or otherwise) because your personal needs, objectives and financial situation have not been considered. Before deciding whether a particular product is right for you, please consider your personal circumstances, as well as the relevant Product Disclosure Statement (if applicable), Target Market Determination and full policy terms and conditions available from Aon on request. All representations in this communication in relation to the insurance products Aon arranges are subject to full terms and conditions of the relevant policy. Please contact Aon if you have any queries.
The Real Estate Agents Professional Indemnity insurance is arranged by Aon under a binder agreement on behalf of CGU Australia Pty Ltd (ABN 62 004 478 960) trading as CGU Insurance (CGU) AFSL 700014. When acting under a binder we will be acting as agent of CGU and not as your agent. Our binder arrangements with CGU are such that we remain your agent in the handling of any claim. If you purchase this insurance, Aon will receive a commission that is a percentage of the premium. Further information can be found in our FSG or provided upon request.