Application for Australian and New Zealand Certified Personnel Professional Indemnity Insurance

This is a "Claims-Made and Reported" policy.  Please read carefully.

WHEREAS the person(s) or partnership or company named in the schedule (hereinafter referred to as the Assured, which term shall include their executors or personal representatives) has submitted a written proposal containing particulars and statements which (together with any other information which may have been supplied) it is agreed shall be the basis of this contract and are to be considered as incorporated herein and in consideration of the Premium stated in the schedule.

NOW THEREFORE, we, the Underwriters, hereby agree to indemnify the Assured up to but not exceeding in the aggregate the Limit of Liability stated in the schedule for any sum or sums which the Assured may become legally liable to pay arising from any Claim or Claims made against them and notified to Underwriters during the Period stated in the schedule as a direct result of any negligent act error or omission in the professional conduct of their Business, as submitted in the proposal and stated in the schedule, by the Assured or any partner or any person employed by the Assured.

FURTHER for the purpose of this insurance, 'Claim' means any of the following:

(a)           a writ, statement of claim, summons, application or other originating legal or arbitral process, cross-claim, counter claim or third or similar party notice served on the Assured; and

(b)           an oral or written demand for compensation made against the Assured.

FURTHER it is understood and agreed that the Underwriters will pay the costs and expenses incurred with the Underwriters prior written consent in the defence and/or settlement of any Claim.  Such costs and expenses are inclusive of and not in addition to the Limit of Liability.

PROVIDED ALWAYS THAT the Underwriters shall be liable only, in respect of any claim hereunder, for that part of the Claim (which for the purpose of this clause shall be deemed to include all costs and expenses incurred by Underwriters in investigating and defending the Claim) which exceeds the amount stated as the Excess in the schedule.  It being understood and agreed that if any expenditure is incurred by the Underwriters which, by virtue of this clause, is the responsibility of the Assured then such amount shall be reimbursed to the Underwriters by the Assured forthwith.

EXCLUSIONS

This insurance does not cover any liability whatsoever arising out of:-

1.            The manufacture, construction, alteration, repair, servicing, treating of any goods or products sold, supplied or distributed by or for and/or on behalf of the Assured.

2.             Any contract where the Assured acts as a Contractor whether in conjunction with the Business or not.

3.            Bodily Injury, Sickness, Disease or Death sustained by any person arising out of and in the course of their employment by the Assured under a contract of service or apprenticeship with the Assured.

4.            Any Claim made against the Assured as a result of any dishonest, malicious, or illegal acts of the Assured or their employees.

5.            The ownership, use, occupation or leasing of property mobile and/or immobile by, to or on behalf of the Assured.

6.            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.  It also being understood that Underwriters have no liability to investigate or defend the Assured against such Claim or Claims or be liable to enforce a judgement obtained in any court of the United States of America or Canada or any territories which come within the jurisdiction of the United States of America or Canada.

7.         (a)            Loss or destruction of or damage to any property whatsoever or any loss or expense whatsoever resulting or arising therefrom or any consequential loss

(b)           Any legal liability or whatsoever nature

directly or indirectly caused by or contributed to by or arising from

(i)            ionising radiations or contamination by radioactivity from any nuclear fuel or from any nuclear waste from the combustion of nuclear fuel

(ii)          the radioactive, toxic, explosive or other hazardous properties of any explosive nuclear assembly or nuclear component thereof.

8.             Any consequence of war, invasion, act of foreign enemy, hostilities (whether war be declared or not), civil war, terrorist act, rebellion, revolution, insurrection or military or usurped power.

9.             Libel and Slander/Defamation.

10.           Loss of Documents.

11.          Any liability directly or indirectly assumed by the Assured under any contract, warranty, agreement or guarantee, unless such liability would have attached to the Assured notwithstanding such contract, warranty, agreement or guarantee.

12.           Any fines, penalties, punitive or exemplary damages.

13.           Any liability for:

(a)        Bodily Injury, sickness, disease or death or loss of, damage to, or loss of use of property directly or indirectly caused by seepage, pollution or contamination, provided always that this paragraph  shall not apply to loss of or physical damage to or destruction of tangible property, or loss of use of such property damaged or

destroyed, where such seepage, pollution or contamination is caused by a sudden, unintended and unexpected happening during the period of this insurance where the same is as a direct result of any negligent act, error or omission by the Assured  in the professional conduct of their Business.

(b)        The cost of removing, nullifying or cleaning-up seeping, polluting or contaminating substances unless the seepage, pollution or contamination is caused by a sudden, unintended and unexpected happening during the period of the Insurance where the same is as a direct result of any negligent act, error or omission by the Assured in the professional conduct of their Business.

14.           Any negligence on the part of the Assured in connection with the estimate of construction costs.

15.          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.

                                                               CONDITIONS

1.            ASSUREDS DUTIES IN THE EVENT OF A CLAIM:

It is a condition precedent to Underwriters liability under this insurance that:

(a)        Upon receipt by the Assured of a Claim or Claims, the Assured shall immediately notify the person(s) named for that purpose in the schedule, for transmission to the Underwriters of the Claim or Claims and shall provide full information insofar as such information is in their possession.

This is a claims made Certificate. The Certificate does not provide cover for circumstances which may give rise to a Claim, whether or not those circumstances are notified to the Underwriters.  The Assured may have statutory rights under Section 40(3) of the Insurance Contracts Act, but those rights do not form part of the Certificate.

(b)          The Assured shall not admit liability for or settle or make or promise any payment in respect of any Claim which may be the subject of indemnity hereunder or incur any costs or expenses in connection therewith without the written consent of the Underwriters who if they so wish shall be entitled to take over and conduct in the name of the Assured the defence and/or settlement of any such Claim for which purpose the Assured shall give all such information and assistance as the Underwriters may reasonably require.

2.            RETROACTIVE DATE: Where a Retroactive Date is specified in the schedule this insurance will not apply to Claims made against the Assured by reason of any negligent act, error or omission committed or alleged to have been committed prior to the said Retroactive Date.

3.            AGREEMENT TO PAY CLAIMS: Underwriters agree to provide indemnity under this insurance without requiring the Assured to dispute any Claim unless a Queen's Counsel  (to be mutually agreed upon by the Underwriters and the Assured) advises that the same could be contested with a reasonable prospect of success by the Assured and the Assured consents to such Claim being contested, but such consent is not to be unreasonably withheld.  In the event of any dispute arising between the Assured and the Underwriters as to what constitutes an unreasonable refusal to contest a Claim at Law, the President for the time being of the Professional Body of which the Assured is a member shall nominate a Referee to decide this point (only) and the decision of such Referee shall be binding on both parties.

4.            OTHER INSURANCE: If at the time any claim arises under this insurance the Assured is or would but for the existence of this insurance be entitled to indemnity under any other Certificate or Certificates, the Underwriters shall not be liable except in respect of any excess beyond the amount which would have been payable under such other Certificate or Certificates had this insurance not been effected.

5.            WAIVER OF SUBROGATION AGAINST EMPLOYEES: It is hereby agreed that if any payment is made under this insurance in respect of a Claim and the Underwriters are thereupon subrogated to all the Assured's rights of recovery in relation thereto the Underwriters shall not exercise any such rights against any employee of the Assured unless the Claim has been brought about or contributed to by the dishonest, fraudulent, criminal or malicious act or omission of the employee.

6.            FRAUDULENT CLAIMS: Subject to the Insurance Contracts Act, if the Assured shall make any claim under the Certificate knowing the same to be false or fraudulent, as regards amount or otherwise, the Underwriters can deny liability to the Assured in respect of the claim under the Certificate.

7.            AGREEMENT TO PAY LIMIT: It is hereby agreed that the Underwriters may at any time pay to the Assured in connection with any Claims or series of Claims under this Certificate the Limit of Liability (less any sums already paid) or any lesser sum for which such claims can be settled and upon such payment the Underwriters shall not be under any further liability in respect of such Claims.

8.            GOVERNING LAW: This Certificate is governed by the laws of Australia.

9.        JURISDICTION: The Underwriters and the Assured irrevocably and unconditionally submit to the exclusive jurisdiction of the Courts of Australia.

Any summons notice or process to be served upon the Underwriters may be served upon [Underwriters to insert details] who has authority to accept service and to enter an appearance on Underwriters' behalf.

10.      CANCELLATION: Underwriters are entitled, by notice in accordance with the Insurance Contracts Act 1984, to cancel this Certificate on the grounds set out in that Act.