Australia’s anti-money laundering and counter-terrorism reforms are now in force, and conveyancers are busy embedding new compliance processes into day-to-day practice. But there is another question worth asking now: if something goes wrong, is your insurance program ready?
The answer depends on understanding how different policies respond.
Professional indemnity and management liability are not the same
Professional indemnity (PI) is designed to respond to civil claims arising from mistakes in professional services. In a conveyancing context, that might include an alleged error or omission in a transaction -such as incorrect advice on process requirements, a documentation issue, or a missed step that results in delay, additional costs, or a financial loss for a client.
PI can be relevant where a conveyancer is accused of negligence. However, it is not designed to cover regulatory investigations, fines, penalties, or enforcement action under AML/CTF laws.
Management liability (ML) sits alongside PI and is designed to help protect the business and its leaders from operational, governance and regulatory risks. Typical cover may include directors & officers, company liability, employment practices liability, crime and statutory liability.
For AML/CTF exposure, the statutory liability section is the one to review most closely. It may help with investigation and defence costs and, in some cases, fines and penalties where legally insurable.
Why this matters now
AUSTRAC has significant enforcement powers. Civil penalty proceedings, enforceable undertakings, infringement notices and remedial directions are all possible outcomes if a conveyancer falls short of their obligations.
That means conveyancers should not assume PI will provide a safety net for regulatory exposure. If AUSTRAC investigates or takes action, management liability is the policy more likely to be relevant.
What conveyancers should check
Start by reviewing whether your current program includes statutory liability cover, and whether it is part of a stand-alone ML policy or only available as a limited extension.
It is also worth checking the wording carefully. Not all policies are the same, and some offer only narrow protection.
Your insurance broker can help you compare policy wording, explain exclusions in plain English and make sure your limits reflect your business’ size, structure and risk profile.
A broader risk response
Insurance is only one part of the response. Conveyancers still need strong AML/CTF procedures, staff training and good record keeping.
But now that the reforms are in force, it is the right time to make sure your insurance program is working as hard as your compliance program.
For assistance in understanding your cover, or to arrange management liability insurance that is appropriately aligned with the new AML/CTF obligations, please contact your Marsh broker on 03 9603 2398 or email aicvic@marsh.com. Alternatively, please visit our website for further information.
To obtain a quote, please complete the Management Liability Proposal Form.
Premiums will vary depending on turnover, limits chosen and previous claims history. No insurance responds to deliberate, intentional or fraudulent acts.
Meet Marsh at the State Conference
The content in this article was prepared and provided by Marsh, who will be attending the 2026 AIC VIC state conference on the 8th of August, held at the Melbourne Convention & Exhibition Centre. Conference registrations close this Friday the 31st of July. If you would like to attend please register the close date.
Register NowMarsh Advantage Insurance Pty Ltd (ABN 31 081 358 303, AFSL 238 369) (“Marsh”) arranges this insurance and are not the insurer.
This publication contains general information, does not take into account your individual objectives, financial situation or needs and may not suit your personal circumstances. For full details of the terms, conditions and limitations of the covers and before making any decision about whether to acquire the product, refer to the specific policy wordings and/or Product Disclosure Statements available from Marsh on request. This publication is not intended to be taken as advice regarding any individual situation and should not be relied upon as such. The information contained herein is based on sources we believe reliable, but we make no representation or warranty as to its accuracy. Marsh shall have no obligation to update this publication and shall have no liability to you or any other party arising out of this publication or any matter contained herein. Marsh makes no representation or warranty concerning the application of policy wordings or the financial condition or solvency of insurers or re-insurers. Marsh makes no assurances regarding the availability, cost, or terms of insurance coverage. LCPA 26/2984