Frequently Asked Questions:

1. Professional Liability Insurance Defined
2. Who does the policy cover?
3. What does the policy Cover?
4. How much do I pay each claim?
5. Is there anything that I should not do when a claim is made against me?
6. What is the limit of liability under the policy?
7. What does the policy exclude?
8. Will this policy cover all of my work?
9. How long is the policy for?
10. Does the policy cover claims brought against me for professional services whenever these were undertaken?

Professional Liability Insurance Defined

Professional Liability Insurance is designed to provide insurance protection for the legal liability of companies, partnerships and sole traders whose business it is to offer their clients professional services, as a result of any negligent act error or ommision in the professional conduct of their business. Claims arise when clients or other third parties allege they have suffered a loss as a result of negligent act or error ommision by the insured entity or those whom the insured entity may have been associated with or engaged for the purpose of carrying on the business for which the insurance was arranged.

Who does the policy cover?   [^]

It covers the person(s) or partnership or company (including their executors or personal representatives) while acting in the professional conduct of their business.

What does the policy cover?   [^]

The policy will indemnify you up to but not exceeding in the AUD 10 million aggregate the Limit of Liability for any sum or sums which you may become legally liable to pay arising from any Claim or Claims made against you and notified to Underwriters during the Period as a direct result of any negligent act error or ommision in the professional conduct of your business.

For example, the policy will pay as part of the AUD 10 million aggregate Limit any costs and expenses incurred in the investigation, defence or settlement of any claim.

You shall give the Insurer such information and cooperation as it may reasonably require.

How much do I have to pay for each claim?   [^]

You will have to pay an excess of $2,500 each and every claim that includes the costs of the investigation, defence or settlement of any claim.

Is there anything that i should not do when a claim is made against me?   [^]

It is condition precedent to Underwriters' liability under this insurance that should you receive notice of a Claim or Claims, you shall immediately notify us (see the person(s) named for that purpose in the policy schedule), so that this can be advised to the Underwriters.

You shall also provide full information insofar as such information is in your possession.

Please note that shall not admit liability for or settle or make or promise any payment in respect of any Claim or incur any costs or expenses in connection with the Claim without the written consent of the Underwriters who if they so wish shall be entitled to take over and conduct in your name the defence and/or settlement of any such claim.

What is the Limit of Liability under the policy?   [^]

The policy issued to every policy holder will be for a shared limit of AU$ 10 million any one claim but AU$ 20 million in the aggregate.

This means that all policy holders during the period of insurance shall have up to AU$ 10 million available for claims arising from the professional conduct of their Business whether from one claim or a number of claims made and notified to Underwriters during the policy period.

In the event that the aggregate Limit of AU$ 10 million is exhausted then a further Limit of AU$ 10 million will be provided for the same policy period. In effect this provides you and other policy holders with two AU$ 10 million aggregate Limits.

Please note that the costs of the investigation, defence or settlement of any claim are included within this aggregate Limit and are not in addition to it.

What does the policy exclude?   [^]

The policy will not cover:

• The manufacture, construction, alteration, repair, servicing, treating of any goods or products sold, supplied or distributed by or for and/or on your behalf.
• Any contract where you act as a Contractor whether in conjunction with the Business or not.
• Bodily Injury, Sickness, Disease or Death
• Dishonest, malicious, or your illegal acts or of your employees.
• The ownership, use, occupation or leasing of property mobile and/or immobile by, to or on your behalf.
• Any Claim or Claims made or actions instituted within the United States of America or Canada or any territories which come within the jurisdiction of the United States of America or Canada.
• Loss liability arising from ionising radiations or contamination by radioactivity
• War and terrorism
• Contract liability
• Any fines, penalties, punitive or exemplary damages
• Any negligence in connection with the estimate of construction costs
• Any Claims for liability arising out of any failure to meet contractual requirements relating to output, efficiency or durability, unless such failure relates to a negligent act, error or omission by the Assured in the professional conduct of their Business.
• Asbestos and toxic mould however this exclusion would not apply where the claim arises out of your professional services.

Will this policy cover all of my work?   [^]

No – the policy will only cover your Certified Competency professional services declared in your Application form.

How long is the policy for?   [^]

12 months.

Does the policy cover claims brought against me for professional services whenever these were undertaken?   [^]

Yes - the policy is written on a 'claims made' basis and would provide cover (subject to policy terms and conditions) so long as written notice of the claim has been notified to the Underwriters.