Even the most skilled professionals can make inadvertent errors, and the financial impact can be significant. Professional indemnity insurance helps protect consumers if an error causes loss, providing a pathway for issues to be resolved fairly and reinforcing that the service is genuinely professional.

Professional indemnity (PI) insurance is one of the most important protections clients can look for when engaging an auctioneer or valuer. It provides financial protection where a client suffers loss due to professional negligence, error or omission. While professionalism and care should always come first, PI insurance provides reassurance that the service is backed by accountability if something does go wrong.

Many people assume insurance is only relevant for large businesses, but PI insurance is critical in professional services where clients rely on advice, reports or process management. A valuation may influence an insurance claim, an estate distribution, a taxation position or a commercial agreement. An auction may involve handling deposits, managing documentation and running transactions under time pressure. If a mistake occurs, the financial consequence can be significant.

From a client perspective, PI insurance is part of what separates an informal service provider from a professional operator. It supports confidence that the business is established, understands risk and has planned for the possibility of human error. It can also reduce stress during disputes, because there is a recognised pathway for assessment and resolution.

Professional indemnity insurance is important because it:

• Provides financial protection if a professional error causes loss, helping legitimate claims be handled properly.
• Encourages disciplined professional practice, because insured providers typically maintain clearer records, processes and documentation.
• Reduces client exposure in higher-value or higher-risk matters, where the cost of getting it wrong is substantial.
• Demonstrates accountability, showing the provider is prepared to stand behind their work and rectify issues responsibly.

The criteria to become an AVAA Certified Auctioneer or AVAA Certified Valuer include the need for these professionals to have PI insurance. Auctioneers and valuers must not act in their certified professional capacity until evidence of professional indemnity insurance has been provided and approved. This requirement helps ensure that professionals operating under recognised membership maintain appropriate protection for clients and for the integrity of the work performed.

Clients should feel comfortable asking direct questions before engagement: Is your PI insurance current? Does it cover the type of work being performed? Can you confirm it in writing if required? Responsible professionals expect these questions and will respond positively, because they understand clients have a right to conduct due diligence.

In a polite but practical sense, engaging a provider who cannot demonstrate appropriate PI cover may increase the risk that, if a problem occurs, the client has limited practical options for recovering loss. Even where a client has a valid complaint, recovery can be difficult and time-consuming without insurance supporting a fair resolution.

Ultimately, PI insurance protects clients, reinforces professional standards and supports better outcomes. It is not about expecting something to go wrong. It is about ensuring that if something does go wrong, there is a professional structure in place to deal with it fairly, efficiently and with the client’s interests properly protected.

So, looking to engage an auctioneer or valuer?

When engaging an auctioneer or valuer, choose an AVAA Certified Auctioneer or AVAA Certified Valuer. Their AVAA membership means they are required to hold professional indemnity (PI) insurance appropriate to their work, giving you greater confidence that professional standards are met and you are better protected if issues arise.