POLICY WORDING
CIVIL LIABILITY
PROFESSIONAL INDEMNITY
INSURANCE
CBRI PI 0616 Effective Date 14 June 2016
CLBR APO ISR 1115 Effective Date 16 November 2015
CALIBRE
CIVIL LIABILITY PROFESSIONAL
INDEMNITY INSURANCE
Notice of Change
This notice supplements and amends the following Calibre Commercial Insurance Pty Ltd* Policy Wording dated 14 June 2016:
Policy Code
Policy Wording
Effective Date
CBRI PI 0616
Calibre Civil Liability Professional Indemnity
Insurance
14 June 2016
This notice forms part of and is to be read together with your Policy Wording. All other Policy terms and conditions remain unaltered.
This notice is dated 2 January 2017, and takes effect on 2 January 2017 or soon after (please refer to Calibre Insurance’s website for the
exact effective date of the change).
THE FOLLOWING AMENDMENTS HAVE BEEN MADE TO YOUR POLICY WORDING:
Important Information
The Insurer
Subject to successful company transfer registration in Germany in the first week of
January or soon after (please refer to Calibre Insurance’s website where a notice will be
provided once the registration is completed):
All references to ‘Great Lakes Reinsurance (UK) SE (ARBN 127 740 532, ABN 18 964
580 576, AFSL 318603)’ within the Important Information provisions are deleted and
replaced with the Insurer’s new entity details as follows:
“Great Lakes Insurance SE (ARBN 127 740 532, ABN 18 964 580 576, AFSL 318603)
trading as Great Lakes Australia (‘GLA’).”
The third paragraph is replaced as follows:
‘GLA is a branch office of Great Lakes Insurance SE, a limited liability company
incorporated in Germany and a wholly owned subsidiary of Münchener
Rückversicherungs-Gesellschaft AG (‘Munich Re’), part of Munich Re (Group).
Munich Re (Group) is one of the largest insurance groups in the world.’
Definitions
Insurer
The definition of “Insurer” in Your Policy is deleted and replaced with:
“Insurer means Great Lakes Insurance SE (ARBN 127 740 532, ABN 18 964 580 576,
AFSL 318603), trading as Great Lakes Australia.”
All other references to the insurer within Your Policy is a reference to the entity stated
above.
*Calibre Commercial Insurance Pty Ltd (ABN 86 603 039 023, AFSL 474540) (‘Calibre Insurance’) acts under a binder as agent for Great Lakes Insurance SE (ARBN 127 740 532, ABN 18 964 580 576, AFSL 318603) trading as Great Lakes Australia (‘GLA’). Great Lakes Insurance SE is a limited liability company incorporated
in Germany.
CBRI PI NOC 0117
TABLE OF CONTENTS
CIVIL LIABILITY PROFESSIONAL INDEMNITY INSURANCE POLICY
IMPORTANT INFORMATION 1
Our Agreement
1
The Insurer 1
The Agent 1
Claims Made and Notified Basis of Coverage
1
Duty of Disclosure
2
GST2
Privacy 2
Dispute Resolution Process 3
Financial Claims Scheme
3
General Insurance Code of Practice
3
Non-Renewable Policy
3
Retroactive Date
3
Subrogation Rights
3
Cost of this Insurance
3
Defined Terms 4
DEFINITIONS
5
1.PREAMBLE
7
2. INSURING CLAUSES
7
3. AUTOMATIC EXTENSIONS
7
4. OPTIONAL COVER
11
5.EXCLUSIONS
12
6. CLAIMS CONDITIONS
14
7.
15
GENERAL CONDITIONS
IMPORTANT INFORMATION
This Policy and the Schedule are important. They should be
read together and kept in a safe place.
If the Insured has any questions regarding the Policy,
please contact the insurance broker or Calibre Commercial
Insurance Pty Ltd (‘Calibre Insurance’).
OUR AGREEMENT
Where the Insurer has agreed to insure the Insured, the
Insurer will issue a Schedule confirming cover.
The information contained in the Schedule sets out
information specific to the Insured such as the cover the
Insurer has agreed to provide and the Policy Limits of
Indemnity.
The Insurer’s agreement with the Insured (‘the Policy’)
will comprise this document, each Schedule and any
endorsements We issue.
In issuing this Policy, the Insurer has relied upon the
Application completed by the Insured, together with all
supplementary information and material provided by or on
behalf of the Insured.
THE INSURER
This insurance is underwritten by Great Lakes Reinsurance
(UK) SE (ARBN 127 740 532, ABN 18 964 580 576, AFSL
318603) trading as Great Lakes Australia (‘GLA’).
Great Lakes Reinsurance (UK) SE is an insurer authorised by
the Australian Prudential Regulation Authority (‘APRA’) to
carry on insurance business in Australia.
GLA is a branch office of Great Lakes Reinsurance (UK) SE, a limited liability company incorporated in England and
Wales and a wholly owned subsidiary of Münchener Rückversicherungs-Gesellschaft AG (‘Munich Re’), part of
Munich Re (Group). Munich Re (Group) is one of the largest
insurance groups in the world.
Great Lakes Reinsurance (UK) SE has strong financial
security characteristics. However, please note that ratings
can vary from time to time. Great Lakes Reinsurance (UK)
SE’s current rating can be checked at the following website,
Standard & Poors: www.standardandpoors.com.
Calibre Commercial Insurance Pty Ltd (‘Calibre Insurance’)
should be contacted in the first instance in relation to this
insurance.
GLA’s contact details are:
THE AGENT
Calibre Commercial Insurance Pty Ltd (ABN 86 603 039 023,
AFSL 474540) (‘Calibre Insurance’) is a subsidiary of Munich
Re, part of Munich Re (Group). Munich Re (Group) is one of
the largest insurance groups in the world.
Calibre Insurance arranges policies for and on behalf of
GLA (‘the Insurer’). Calibre Insurance acts under a binding
authority given to it by the Insurer to administer and issue
policies, alterations and renewals. In all aspects of arranging
this Policy, Calibre Insurance acts as an agent for the Insurer
and not for the Insured.
Calibre Insurance’s contact details are:
• Address: Level 8, 1 Pacific Highway, North Sydney, NSW 2060
• Phone: 1300 306 226
• Email: [email protected]
CLAIMS MADE AND NOTIFIED BASIS OF COVERAGE
The Civil Liability Professional Indemnity Insurance Policy is
issued on a ‘claims made and notified’ basis.
This means that the Insuring Clause responds to:
a) claims first made against the Insured during the Period
of Insurance and notified to the Insurer during the Period
of Insurance, provided that the Insured was not aware at
any time prior to the Policy inception of circumstances
which would have put a reasonable person in the
Insured’s position on notice that a claim may be made
against the Insured; and
b) written notification of facts pursuant to section 40(3)
of the Insurance Contracts Act 1984 (Cth). The facts that
the Insured may decide to notify, are those which might
give rise to a claim against the Insured. Such notification
must be given as soon as reasonably practicable after
the Insured becomes aware of the facts and prior to the
Period of Insurance expiring. If the Insured gives written
notification of facts the Policy will respond even though
a claim arising from those facts is made against the
Insured after the Policy has expired.
When the Period of Insurance expires, no new notification
of facts can be made on the expired Policy even though the
event giving rise to the claim against the Insured may have
occurred during the Period of Insurance.
• Address: 143 Macquarie Street, Sydney, NSW 2000
• Mail: PO Box H35 Australia Square, Sydney, NSW 1215
• Phone: +61 2 9272 2050
1
DUTY OF DISCLOSURE
PRIVACY
Before the Insured enters into an insurance contract, the
Insured has a duty to tell the Insurer anything that the
Insured knows, or could reasonably be expected to know,
may affect the Insurer’s decision to insure the Insured and
on what terms.
Both the Insurer and Calibre Insurance are committed to the
safe and careful use of the Insured’s personal information
in the manner required by the Privacy Act 1988 (Cth), the
Australian Privacy Principles and the terms of the Policy.
The Insured has this duty until the Insurer agrees to insure
the Insured.
The Insured has the same duty before the Insured renews,
extends, varies or reinstates an insurance contract.
The Insured does not need to tell the Insurer anything that:
• reduces the risk the Insurer insures the Insured for; or
• is common knowledge; or
• the Insurer knows or should know as an insurer; or
• the Insurer waives the Insured’s duty to tell the Insurer
about.
If the Insured does not tell the Insurer something
If the Insured does not tell the Insurer anything the Insured
is required to, the Insurer may cancel the Insured’s contract
or reduce the amount the Insurer shall pay the Insured if the
Insured makes a Claim, or both.
If the Insured’s failure to tell the Insurer is fraudulent, the
Insurer may refuse to pay a Claim and treat the contract as
if it never existed.
After the Policy is entered into, ongoing disclosure
obligations apply. See Policy for details.
GST
The limits of cover that the Insured chooses should exclude
Goods and Services Tax (‘GST’).
If the Insured is not registered for GST in the event of
a Claim the Insurer will reimburse the Insured the GST
component in addition to the amount that the Insurer pay.
The amount that the Insurer is liable to pay under this Policy
will be reduced by the amount of any input tax credit that
the Insured is or may be entitled to claim for the supply of
goods or services covered by that payment.
If the Insured is entitled to an input tax credit for the
premium, The Insured must inform the Insurer of the extent
of that entitlement at or before the time the Insured makes
a Claim under this Policy. The Insurer will not indemnify the
Insured for any GST liability, fines or penalties that arise
from or are attributable to the Insured’s failure to notify the
Insurer of the Insured’s entitlement (or correct entitlement)
to an input tax credit on the premium.
If the Insured is liable to pay an Excess under this Policy,
the amount payable will be calculated after deduction of
any input tax credit that the Insured is or may be entitled to
claim on payment of the Excess.
2
Calibre Insurance and/or the Insurer collect the Insured’s
personal information in order to assess the Insured’s
Application for insurance and, if the Insured’s Application
is accepted, to administer and manage the Policy and
respond to any claim that the Insured makes. To do this, the
Insured’s personal information may need to be disclosed to
reinsurers, service providers and related entities who carry
out activities on the Insurer’s and Calibre Insurance’s behalf,
such as assessors, facilitators or credit references bureaus
(for a full list please see Calibre Insurance’s and the Insurer’s
privacy policies), some of whom may be located in overseas
countries. The Insurers contractual arrangements generally
include an obligation for these reinsurers, service providers
and related entities to comply with Australian privacy laws.
By providing the Insurer and Calibre Insurance with the
Insured’s personal information, the Insured consents to
the disclosure of their personal information (including
sensitive information) to reinsurers, service providers and
related entities in overseas countries to enable the Insurer
and Calibre Insurance to assess the Insured’s Application,
to administer and manage the Insured’s insurance Policy
and to respond to any claim that the Insured makes.
The Insured’s personal information (including sensitive
information) may be disclosed to entities in the following
countries: Canada, Germany, India, Singapore, South
Africa and the United Kingdom. If the Insured consents to
the disclosure of their personal information to overseas
recipients, and the overseas recipient handles the Insured’s
personal information in a way other than in accordance
with the Australian privacy laws, the Insurer and Calibre
Insurance may not be responsible for the handling of the
Insured’s personal information by the overseas recipient.
If the Insured chooses not to provide their personal
information and/or chooses not to consent and/or
withdraw their consent to the disclosure of their personal
information to overseas entities at any stage, the Insurer
and/or Calibre Insurance may not be able to assess the
Insured’s Application or administer and manage the Policy
and respond to any claim that the Insured makes.
The Insurer’s and Calibre Insurance’s privacy policies contain
information on how the Insured may access personal
information that the Insurer and/or Calibre Insurance hold,
or seek correction of their personal information and
information on how to make a complaint about the handling
of their personal information and how complaints are
handled. If the Insured requires more information, they can
access the Insurer’s Privacy Policy and Privacy Statement at www.munichre.com/io/gla/en/privacy_statement.aspx,
and Calibre Insurance’s Privacy Policy at www.calibreinsurance.com.au/privacy-policy-pdf/
and Privacy Statement at
www.calibreinsurance.com.au/privacy-security/privacystatement/
DISPUTE RESOLUTION PROCESS
FINANCIAL CLAIMS SCHEME
If the Insured is not satisfied with the Insurer’s service
please tell the Insurer so the Insurer can help. The Insurer
will address complaints in accordance with Calibre
Insurance’s Complaints Handling Process (available at:
www.calibreinsurance.com.au/wp-content/uploads/
Complaints-process.pdf) and the Insurance Council of
Australia’s General Insurance Code of Practice.
In the event of the insolvency of the Insurer, the Insured
may be entitled to payment under the Financial Claims
Scheme. Access to the scheme is subject to eligibility criteria.
Information about the scheme can be obtained from the
APRA website at www.apra.gov.au and the APRA hotline on
1300 558 849.
If the Insured has a complaint:
GENERAL INSURANCE CODE OF PRACTICE
Step 1: Contact Calibre Insurance by:
The Insurer is a signatory to the General Insurance Code
of Practice (‘the Code’). The Code aims to raise standards
of service between insurers and their customers. Calibre
Insurance’s service standards are in accordance with the Code.
• Phone: 1300 306 226
• Fax: 1300 559 936
• Email: [email protected]
• Mail: Level 8, 1 Pacific Highway, North Sydney, NSW 2060
If Calibre Insurance requires additional information
they shall contact the Insured to discuss. If the Insured’s
complaint is not immediately resolved Calibre Insurance
shall respond within 15 business days of receipt of the
Insurer’s complaint or agree a reasonable alternative
timetable with the Insured.
Step 2: Internal Dispute Resolution
If the Insured is not satisfied with Calibre Insurance’s
response the Insured may refer it in writing to Calibre
Insurance’s Internal Dispute Resolution Panel, which is
independent of the original complaint review. The Panel
shall respond within 15 business days. Should this be
unachievable, the Panel may request a later response date.
If the Insured is not satisfied with the resolution, the
Insured’s complaint shall be referred to the Dispute
Resolution officer or their delegate from the Insurer.
For any information about the Code, including a copy of the
Code, contact the Insurer or the FOS Australia on 1800 367 287 (or 1800 FOS AUS) or look at www.codeofpractice.com.au.
NON-RENEWABLE POLICY
This Policy will terminate at the end of the Period of
Insurance specified in the Schedule.
If the Insured wants to obtain similar insurance for a
subsequent Period of Insurance, the Insured will need to
complete a new Application before the end of the Period of
Insurance specified in the Schedule.
RETROACTIVE DATE
This Policy does not apply to, and the Insurer will not be
liable in respect of any Claim and/or Loss arising from,
attributable to or in any way connected with any act, error
or omission occurring prior to the Retroactive Date where
one is specified in the Schedule.
The Insured may contact the Insurer by:
• Phone: +61 2 9272 2157
• Email: [email protected]
• Mail: Great Lakes Australia, 143 Macquarie Street,
Sydney, NSW 2000
Step 3: External Dispute Resolution scheme
If the Insurer is unable to resolve the Insured’s complaint
within 45 days of the date the Insurer first received the
Insured’s complaint or if the Insured remain unsatisfied,
the Insured may seek a free review by the Financial
Ombudsman Service Limited (‘FOS Australia’). The FOS
Australia is an independent national body and the Insurer
agrees to accept its decision.
The Insured may contact the FOS Australia by:
• Phone: 1800 367 287 (or 1800 FOS AUS)
• Email: [email protected]
• Website: www.fos.org.au
• Mail: Financial Ombudsman Service Ltd, GPO Box 3, Melbourne, VIC 3001
SUBROGATION RIGHTS
This Policy does not apply to, and the Insurer will not
be liable in respect of any Claim and/or Loss in respect
of which the Insured has at any time foregone, waived,
excluded or limited a right of recovery against any other
person, firm or entity, but only to the extent that the
Insurer is prevented from exercising a recovery action for
compensation from such parties.
Should the Insured now be a party to such agreement or be
requested to enter such an agreement in the future please
advise the Insurer immediately in writing.
COST OF THIS INSURANCE
The cost of this Policy will be shown on the quotation
provided, once all required information has been received.
The cost of this Policy is calculated based on a number of
considerations including Limit of Indemnity, Professional
Services, the insurance history and the gross fee/income.
3
These factors, and the degree to which they affect the
premium, will depend on the information the Insured
provides to the Insurer.
The cost of this Policy is made up of premium, government
taxes such as Goods & Services Tax (GST) and stamp duty,
where applicable.
DEFINED TERMS
This Policy has capitalised words with special meaning
wherever they appear, to show that those words have a
particular defined meaning. These words are defined in the
Definitions section of the Policy. Where any word is defined
every derivative of that word has a corresponding meaning.
References to the singular also includes the plural and vice
versa.
4
DEFINITIONS
When used in this Policy, its Schedule and its Endorsements
the following definitions will apply:
Act of Terrorism
Means any act, or preparation in respect of action, or threat
of action designed to influence the government de jure
or de facto of any nation or any political division thereof,
or in pursuit of political, religious, ideological or similar
purposes to intimidate the public or a section of the public
of any nation by any person or group(s) of persons whether
acting alone or on behalf of or in connection with any
organisation(s) or government(s) de jure or de facto, and
which:
a)
involves violence against one or more persons;
b)
involves damage to property;
c)
endangers life other than that of the person
committing the action;
d)
creates a risk to health or safety of the public or a
section of the public; or
e)
is designed to interfere with or to disrupt an
electronic system.
Application
Means the written Application form together with all
supplementary information and material provided by or on
behalf of the Insured.
books, letters, certificates, written or printed documents
or forms of any nature. Documents does not mean money,
negotiable instruments, bearer bonds or coupons, stamps,
bank or currency notes.
Employee
Means any person (other than a director or partner of
the Insured) employed under a contract of service or
apprenticeship by the Insured and includes any trainee,
volunteer and casual, part-time, seasonal, temporary and
work experience personnel.
Excess
Means the Excess specified in the in the Schedule, being
the amount that the Insured must first pay in respect of
any compensation and Defence Costs payable under this
Policy in respect of any Claim or Loss under this Policy.
Inquiring Body
Means a court, tribunal, or legally constituted industry or
professional board.
Inquiry Costs
Means necessary and reasonable legal costs and expenses
incurred by the Insured arising out of any notice requiring
the Insured’s attendance at an inquiry or hearing before an
Inquiring Body.
Insolvent
Civil Liability
Means becoming a body corporate, entity or person:
Means the Insured’s liability for any civil cause of action
made by a third party for compensation based solely on the
provision of or failure to provide the Professional Services.
a)
that is bankrupt or unable to pay its debts as and when
they fall due; or
b)
in respect of which an application for bankruptcy or
winding up has been made; or
c)
in respect of which a Liquidator, Provisional Liquidator,
Receiver, Receiver and Manager, or Official Manager
has been appointed (whether or not by a Court); or
d)
in respect of which an administrator has been
appointed or that is under administration; or
e)
that has executed a Deed of Company Arrangement
that has not yet terminated; or
f)
that has entered into a compromise or arrangement
with another person.
Claim
Means:
a)
the receipt by the Insured of any written or verbal
notice of a demand for compensation made by a third
party against the Insured; or
b) any 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 Insured.
All claims arising directly or indirectly out of or in
connection with the same source or originating cause shall
be considered to constitute a single claim, for the purposes
of the Limit of Indemnity and the Excess.
Insured
Defence Costs
a)
Means reasonable legal costs and other expenses incurred
by or on behalf of the Insured (with the written consent of
the Insurer) or by the Insurer in the investigation, defence
and/or settlement of a Claim.
b) any person who is a director, principal, partner, or
Employee of the named Insured specified in the
Schedule;
Documents
Means deeds, wills, agreements, maps, plans, records,
computer records, electronic data, written or printed
Means:
any person, company, organisation and/or any other
entity specified in the Schedule as the named Insured;
c) any person who ceased to be a director, principal,
partner, or Employee of the named Insured specified in
the Schedule.
5
Insurer
Professional Services
Means Great Lakes Reinsurance (UK) SE (ARBN 127 740 532,
ABN 18 964 580 576, AFSL 318603) trading as Great Lakes
Australia (‘GLA’).
Means only those Professional Services that are provided by
the Insured or on the Insured’s behalf that are specified in the
Schedule.
Joint Venture
Public Relations Expenses
Means an enterprise, which the Insured carries on together
with some other party.
Means the reasonable costs, charges, fees and expenses of a
public relations firm or consultant engaged to prevent or limit
the adverse effects of or negative publicity from an adverse
publicity event.
Limit of Indemnity
Means the applicable Limit of Indemnity specified in the
Schedule inclusive of any applicable sub-limits as specified
in this Policy.
Retroactive Date
Means the Retroactive Date specified in the Schedule.
Loss
Schedule
Means the following:
Means any Schedule, Renewal Schedule or endorsement
Schedule issued by the Insurer in connection with this Policy
for the applicable Period of Insurance.
a) Inquiry Costs;
b) Loss of Documents;
c) Compensation for court attendance;
d) Public relations expenses;
e) Privacy breach costs;
f) Court attendance costs;
g) Compensatory penalties; or
h) All other costs payable under this Policy which do not
require the making of a Claim.
Maximum Aggregate Limit of Indemnity
Means the applicable Maximum Aggregate Limit of Indemnity
specified in the Schedule inclusive of any applicable sub-limits
as specified in this Policy.
Period of Insurance
Means the period specified in the Schedule.
Policy
Means this document each Schedule and any endorsements
issued by the Insurer in connection with this Policy.
6
Senior Counsel
Means a barrister in active practice who is entitled to
use the post nominals QC or SC in any superior court in
the Commonwealth of Australia or the Dominion of New
Zealand.
Subsidiary
Means a subsidiary of the named Insured as defined in the
Corporations Act 2001 (Cth).
1. PREAMBLE
Subject to payment of the premium specified in the Schedule,
the Insurer agrees to provide insurance to the Insured on the
terms of this Policy.
2. INSURING CLAUSES
2.1 COVER
2.3 CLARIFICATION OF INSURING CLAUSE
Subject to the terms, exclusions, conditions, limitations,
definitions and the Limit of Indemnity that apply to this
Policy, the Insurer will indemnify the Insured against Civil
Liability for compensation and claimant’s costs and expenses
in respect of any Claim first made against the Insured during
the Period of Insurance and notified to the Insurer during
the Period of Insurance resulting from the conduct of the
Professional Services.
For the purposes of clarifying the scope of cover under
Insuring Clause 2.1 Cover of this Policy, Civil Liability includes:
The Insurer’s maximum liability to pay compensation and
claimant’s costs and expenses in respect of any one Claim
first made against the Insured and notified to the Insurer
during the Period of Insurance shall not exceed the Limit of
Indemnity.
The Insurers aggregate liability under this Policy will not
exceed the Maximum Aggregate Limit of Indemnity for all
Claims first made against the Insured and notified to the
Insurer during the Period of Insurance.
2.2 DEFENCE COSTS
In addition to the Limit of Indemnity the Insurer will pay
Defence Costs incurred with the Insurer’s prior written
consent in the investigation, defence and/or settlement of any
Claim for which the Insured is entitled to be indemnified under
Insuring Clause 2.1.
Provided that if a judgment or an amount required to settle
a Claim exceeds the Limit of Indemnity, the Insurer’s liability
to pay Defence Costs is limited to the proportion the Limit of
Indemnity bears to the amount required to be paid to dispose
of the Claim.
Consumer Protection Legislation
Claims for Civil Liability (excluding criminal liability) resulting
from a breach of a statutory duty under the Competition
and Consumer Act 2010 (Cth), Corporations Act 2001 (Cth),
National Consumer Credit Protection Act 2009 (Cth) or similar
legislation enacted for the protection of consumers, within any
Australian jurisdiction including any amendment, consolidation
or re-enactment of such legislation, resulting from the conduct
of the Professional Services.
Libel or Slander
Claims for Civil Liability for unintentional libel, unintentional
slander or unintentional defamation committed by the Insured
in the conduct of the Professional Services.
Contractual Liability
Claims for contractual liability, provided that:
a) the Insurer will not be liable for any liability assumed by
the Insured under any express warranty, guarantee, hold
harmless agreement, indemnity clause or the like unless
such liability would have attached to the Insured in the
absence of such agreement; and
b) where a Claim is an alleged breach of contract the
Insurer will not reduce their liability by the mere fact that
contributory negligence is not available as a defence.
3. AUTOMATIC EXTENSIONS
PREAMBLE
The Insurer agrees to provide cover under these extensions,
for no additional premium, provided that:
a) the indemnity provided is subject to the terms, exclusions,
conditions, limitations, definitions, Excess and the Limit
of Indemnity that apply to this Policy, unless otherwise
stated within these extensions; and
b) the inclusion of any Policy extension shall not increase the
Limit of Indemnity nor the Maximum Aggregate Limit of
Indemnity.
3.1 COMPENSATION FOR COURT ATTENDANCE
The Insurer will pay the named Insured compensation if
any Principal or Employee is required to attend court as a
witness in connection with a Claim covered under this Policy,
provided that the lawyers acting on behalf of the Insured
requested the Principal or Employee to attend. The Insurer
will pay the rate equivalent to the Principal or Employee
daily take home salary up to $250 per person each day
subject to a maximum of $10,000 for all persons any one
Claim.
7
under a Civil Liability Professional Indemnity
Insurance Policy issued by the Insurer and was
insured by the Insurer at the time when the
Insured first became aware of such facts or
circumstances; and
3.2 COMPENSATORY PENALTIES
Notwithstanding exclusion 5.13 Multiple Damages, Fines
and Penalties the Insurer will indemnify the Insured for
compensatory civil penalties awarded against the Insured,
which results from a proceeding commenced and notified
to the Insurer in the Period of Insurance resulting from the
conduct of the Professional Services.
iii)
Provided that, the Insurer will not indemnify the Insured for
compensatory civil penalties which:
a) the Insurer is legally prohibited by law from indemnifying;
or
b) which result from a wilful, intentional or deliberate act,
error or omission.
The total liability of the Insurer under this extension will
not exceed $250,000 in the aggregate during the Period of
Insurance.
3.3 CONSULTANTS, SUB-CONTRACTORS AND AGENTS
The Insurer will indemnify the Insured against Civil Liability
for compensation and claimant’s costs and expenses in
respect of any Claim first made against the Insured during
the Period of Insurance and notified to the Insurer during
the Period of Insurance, resulting from the conduct of the
Professional Services by any consultants, sub-contractors
or agents of the Insured.
No indemnity is provided for any Claim made against such
consultants, sub-contractors or agents.
3.4 CONTINUOUS COVER
Where the Insured:
a) first became aware of facts or circumstances that might
give rise to a Claim or Loss, prior to the Period of Insurance;
and
b) had not notified the Insurer of such facts or circumstances
prior to the Period of Insurance, then exclusions 5.11
Known Circumstances and 5.12 Known Claims will not
apply to any notification during the Period of Insurance
of any Claim or Loss resulting from such facts or
circumstances, provided that:
8
i)
there is an absence of fraudulent non-compliance
with the Insured’s duty of disclosure and an
absence of fraudulent misrepresentation by the
Insured in respect of such facts or circumstances;
and
ii)
the Insured has been continuously insured,
without interruption at the time of the
notification of the Claim or Loss to the Insurer,
the Insurer may reduce its liability under the
Policy to the extent of any prejudice the Insurer
may suffer in connection with the Insured’s
failure to notify the facts or circumstances giving
rise to a Claim or Loss prior to the Period of
Insurance.
3.5 COURT ATTENDANCE COSTS
The Insurer will pay an Insured up to $250 per day for costs
incurred attending court where that Insured is required to
attend court as a witness in connection with a Claim covered
under this Policy, provided that the lawyers acting on behalf of
the Insured requested the Insured to attend.
The total liability of the Insurer under this extension will
not exceed $50,000 in the aggregate during the Period of
Insurance.
3.6DISHONESTY
The Insurer agrees that, exclusion 5.6 Dishonesty will not apply
to any Claim first made against the Insured during the Period
of Insurance and notified to the Insurer during the Period
of Insurance arising from or attributable to any dishonest,
fraudulent, criminal or malicious act, error or omission of any
Employee occurring or committed in connection with the
Professional Services.
Provided that, no indemnity is available:
a)
where the Insured has knowingly engaged in or
condoned such conduct;
b)
for any person committing or condoning the act,
error or omission; or
c)
for any loss sustained or liability incurred as a result
of any act, error or omission occurring after the date
on which the Insured first discovers, or has reasonable
cause for suspicion of, dishonest, fraudulent, criminal
or malicious conduct on the part of any such person.
3.7 ESTATES
The Insurer will indemnify the estate, heirs, legal
representatives or assigns of any deceased, incompetent or
Insolvent Insured against Civil Liability for compensation and
claimant’s costs and expenses in respect of any Claim first
made against the Insured during the Period of Insurance and
notified to the Insurer during the Period of Insurance.
3.8 EXTENDED REPORTING PERIOD
Provided that:
In the event that this Policy is neither renewed nor replaced
at the end of the Period of Insurance with a policy that covers
substantially the same risk, the named Insured will be entitled
to purchase an extended reporting period of 365 days.
a)
at the time of any act, error or omission such contractor
was not an Employee of the named Insured and they:
i)
had entered into a contract for Professional Services
with the named Insured where they earnt at least
90% of their income (for the 6 months prior) from
the named Insured; and
ii)
were under the direct control and supervision of
the Insured;
Provided that:
a)
the name Insured will not be entitled to purchase an
extended reported period under this extension if the
named Insured becomes Insolvent during the Period of
Insurance;
b)
the named Insured is required to pay the additional
premium the Insurer determines to be applicable; and
c)
the entitlement to purchase this extension lapses on
the expiry of the Period of Insurance.
b)
the named Insured declared the income to
the Insurer generated by the contractor in the
Application; and
c)
such contractor shall be subject to all the terms of
this Policy as if they were an Insured.
3.9 FORMER PRINCIPALS
3.12 INQUIRY COSTS
The Insurer will indemnify former principals, partners, directors
and Employee(s) of the Insured against Civil Liability for
compensation and claimant’s costs and expenses in respect
of any Claim first made against them during the Period of
Insurance and notified to the Insurer during the Period of
Insurance, provided always that the definition of the Insured
includes those persons resulting from the conduct of the
Professional Services performed while a principal, partner,
director or Employee of the Insured.
Insurer will indemnify the Insured for Inquiry Costs Incurred by
the Insured with the Insurer’s prior written consent.
3.10 FORMER SUBSIDIARY
The Insurer will indemnify the former Subsidiary of the named
Insured against Civil Liability for compensation and claimant’s
costs and expenses in respect of any Claim first made against
the former Subsidiary during the Period of Insurance and
notified to the Insurer during the Period of Insurance resulting
from the conduct of the Professional Services.
Provided that:
a)
the former Subsidiary is specified in the Application;
and
b)
such indemnity only applies arising out of any act, error
or omission occurring prior to the date such Subsidiary
ceased to be a Subsidiary of the named Insured.
3.11 INDEMNITY TO CONTRACTORS
The Insurer will indemnify any person who is a past and/or
present contractor of the named Insured against Civil Liability
for compensation and claimant’s costs and expenses in
respect of any Claim first made against the contractor during
the Period of Insurance and notified to the Insurer during
the Period of Insurance resulting from the conduct of the
Professional Services.
Provided that:
a)
the notice requiring the Insured’s attendance at the
inquiry or hearing is first received by the Insured and
notified to the Insurer during the Period of Insurance;
b)
such attendance arises directly from conduct allegedly
committed by the Insured resulting from the conduct of
the Professional Services;
c)
regular or overtime wages, salaries or fees of the Insured
are excluded from this indemnity; and
d)
the total liability of the Insurer under this clause shall
not exceed $250,000 during the Period of Insurance.
3.13 INTELLECTUAL PROPERTY
The Insurer will indemnify the Insured against Civil Liability
for compensation and claimant’s costs and expenses in
respect of any Claim first made against the Insured during
the Period of Insurance and notified to the Insurer during the
Period of Insurance, for infringement of rights of intellectual
property, provided that the act, error or omission by the
Insured is unintentional and is committed in the conduct of the
Professional Services.
3.14 JOINT VENTURE
The Insurer will indemnify the Insured against Civil Liability for
compensation and claimant’s costs and expenses in respect
of any Claim first made against the Insured during the Period
of Insurance and notified to the Insurer during the Period of
Insurance, resulting from the conduct of the Professional
Services as part of a Joint Venture.
9
Provided that:
a)
b)
the fees or income derived from participation in such
Joint Venture have been included in the Application for
the purposes of calculating the premium for this Policy;
and
b)
to acts, errors or omissions occurring after the date the
named Insured created or acquired the Subsidiary;
c)
to Subsidiaries which are domiciled in Australia or New Zealand; and
d)
to Subsidiaries that conduct the same Professional
Services as the named Insured.
the Joint Venture is not otherwise insured by any other
more specific insurance in respect of the Joint Venture.
There is no cover under this Policy for the Insured’s Joint
Venture partner(s) and the Insurer will only indemnify the
Insured for their portion of the Joint Venture.
3.15 LOSS OF DOCUMENTS
If during the Period of Insurance the Insured first discovers
that any Documents the property of or entrusted to the
Insured have been destroyed, damaged, lost or mislaid the
Insurer agrees to provide cover for costs and expenses of
whatsoever nature incurred by the Insured in replacing or
restoring such Documents.
Provided that:
3.17 PRIVACY BREACH COSTS
The Insurer will indemnify the Insured against Civil Liability
for compensation and claimant’s costs and expenses in
respect of any Claim first made against the Insured during
the Period of Insurance and notified to the Insurer during
the Period of Insurance, for breach of any duty of privacy or
confidentiality, provided that the act, error or omission by the
Insured is unintentional and is committed in the conduct of the
Professional Services.
3.18 PUBLIC RELATIONS EXPENSES
The Insurer will indemnify the named Insured for Public
Relations Expenses incurred with the written consent of the
Insurer in respect of an adverse publicity event that first
occurs in the Period of Insurance and is notified to the Insurer
in the Period of Insurance.
a)
such costs and expenses are supported by accounts
approved by a competent person nominated by the
Insurer;
b)
the Documents were not lost due to wear, tear, vermin,
mould or mildew or any other gradually operating cause;
Provided that:
c)
such loss or damage is sustained during the Period of
Insurance while the Documents are either in custody of
the Insured or any person who the Insured has entrusted
them resulting from the conduct of the Professional
Services;
a)
the adverse publicity event is one that has the potential
to seriously impact the reputation of the named Insured;
b)
the named Insured is liable for the first $1,000 of Public
Relations Expenses incurred for any one event; and
c)
the total liability of the Insurer under this extension will
not exceed $50,000 in the aggregate during the Period
of Insurance.
d)
e)
where the Documents are in electronic format, the
Insured or any person to whom the Insured has entrusted
them, have sufficient and proper procedures in place for
the security and the daily back-up of those Documents;
3.19 RUN-OFF COVER
the maximum aggregate amount payable by the Insurer
under this extension in any Period of Insurance is
$300,000.
The Insurer agrees to continue the cover under this Policy to
any person, corporation, Subsidiary or entity insured by this
Policy until expiry of the Period of Insurance if:
3.16 NEWLY CREATED OR ACQUIRED
SUBSIDIARY
If during the Period of Insurance the named Insured acquires
or creates a new Subsidiary, the Insurer will indemnify the
new Subsidiary against Civil Liability for compensation and
claimant’s costs and expenses in respect of any Claim first
made against the Subsidiary during the Period of Insurance
and notified to the Insurer during the Period of Insurance
resulting from the conduct of the Professional Services.
Provided that, this indemnity only applies:
a)
10
from the date of acquisition or creation and ending 30 days after (or earlier if the Policy ends sooner);
a)
such person retires or otherwise ceases to provide
Professional Services; or
b)
such entity ceases to exist or operate or is consolidated
with, merged into or acquired by any other entity.
Provided that this extension only applies in relation to Civil
Liability for a breach of Professional Services by reason of any
act, error or omission occurring prior to the date that any such
person retires or otherwise ceases to provide Professional
Services or such corporation, entity or Subsidiary ceases
to exist or operate or is consolidated with, merged into or
acquired by any other entity.
3.20 SPOUSAL LIABILITY
3.21 THIRTY DAY REPORTING PERIOD
The Insurer will indemnify an Insured’s spouse against Civil
Liability for compensation and claimant’s costs and expenses
in respect of any Claim first made against the Insured’s spouse
during the Period of Insurance and notified to the Insurer
during the Period of Insurance resulting from the conduct of
the Professional Services.
The Insurer agrees that the Insured may continue to notify
the Insurer of Claims up to 30 days after the expiry of the
Period of Insurance in relation to Claims first made against
the Insured during the Period of Insurance which result from
any act, error or omission committed or alleged to have
been committed prior to expiry of the Period of Insurance.
Any notification under this extension will be deemed to
have been first notified to the Insurer during the Period of
Insurance.
Provided that:
a)
the Claim is being made against the spouse solely by
reason of the spouse’s legal status as spouse or due to
the spouse’s ownership interest in property which the
claimant seeks recovery; and
b)
the Claim is not as a result of any act, error or omission by
such spouse.
4. OPTIONAL COVER
PREAMBLE
4.1 PRINCIPAL’S PREVIOUS BUSINESS
The Insurer agrees to provide cover under this Optional Cover
if it is specified as included in the Schedule, provided that:
The Insurer will indemnify past and/or present principal
of the Insured against Civil Liability for compensation and
claimant’s costs and expenses in respect of any Claim first
made against the principal during the Period of Insurance
and notified to the Insurer during the Period of Insurance,
resulting from the conduct of their Professional Services
whilst they were a sole practitioner, a partner of a firm
or a director of a company not included as an Insured
under this Policy, prior to their becoming a principal of the
Insured. Provided that, the Professional Services of the sole
practitioner or company which is not included as an Insured
is no different from the Professional Services specified in
the Schedule of the Insured.
a)
the indemnity provided is subject to the terms,
exclusions, conditions, limitations, definitions, Excess and
the Limit of Indemnity that apply to this Policy, unless
otherwise stated within this Optional Cover; and
b)
the inclusion of this Optional Cover shall not increase the
Limit of Indemnity.
11
5. EXCLUSIONS
This Policy does not apply to, and the Insurer will not be liable
in respect of any Claim and/or Loss:
5.7 EMPLOYER’S LIABILITY
5.1 AIRCRAFT, MOTOR VEHICLE AND
WATERCRAFT
a) the death, bodily injury, disease or illness of any Insured
arising out of or in the course of or in respect of their
employment with the Insured; or
Arising from, attributable to or in any way connected with the
Insured’s ownership, lease, operation or use of any aircraft,
motor vehicle or watercraft.
Arising from, attributable to or in any way connected with:
b) a breach of any obligation owed by the Insured as an
employer, to an Employee.
5.2 ASBESTOS
5.8 GEOGRAPHICAL LIMITS
Arising from, attributable to or in any way connected
with, resulting as a consequence of, or related to asbestos,
whether or not there is another cause of loss which may have
contributed concurrently or in any sequence to a loss.
Arising from, attributable to or in any way connected with
any act, error or omission occurring in the United States of
America (including its territories and protectorates).
5.3 CONSENSUAL CLAIMS
Brought or maintained by or on behalf of any person or
entity with the solicitation, co-operation or assistance of any
Insured.
5.4 CONTRACTUAL LIABILITY
Arising from, attributable to or in any way connected with
any duty, obligation or liability assumed by the Insured by
contract, warranty, guarantee or indemnity, unless such duty,
obligation or liability would have existed in the absence of
such assumption.
5.5 DIRECTOR AND OFFICERS’ LIABILITY
Arising from, attributable to or in any way connected
with the Insured’s functions and duties as a director and/or
officer of the Insured or any legal entity, corporation or
other incorporated body.
5.6 DISHONESTY
Arising from, attributable to or in any way connected with
any dishonest, fraudulent, criminal or malicious conduct of
the Insured or any Employee. Such conduct also includes,
but is not limited to, acts or omissions which are:
a) committed with reckless disregard for the consequences
thereof; or
5.9 INSOLVENCY
First made or intimated subsequent to the date upon which
the Insured becomes Insolvent. This exclusion shall not apply
where the Insured establishes, to the satisfaction of the
Insurer, that the Claim would have arisen notwithstanding that
the Insured was Insolvent.
5.10 JURISDICTION
Brought in a court of law, tribunal or other body entitled to
enforce orders against the Insured in the United States of
America (including its territories and protectorates) or from
the enforcement of any judgment, order or award in respect of
any court of law, tribunal or other body in the United States of
America (including its territories and protectorates).
5.11 KNOWN CIRCUMSTANCES
Arising from, attributable to or in any way connected with any
facts, circumstances or occurrences:
a)
noted on the Application for the current Period of
Insurance or on any previous application to any insurer or
of which notice had been given to any insurer under any
previous policy, however expressed; or
b)
of which the Insured was aware prior to the
commencement of the Period of Insurance and which the
Insured knew (or ought reasonably to have realised) may
give rise to a Claim or Loss.
b) a wilful breach of statute, contract or duty.
5.12 KNOWN CLAIMS
This exclusion will only apply where it is established by an
admission of such Insured or Employee or by a judgment,
award, finding or other adjudication of a court, tribunal,
commission, or arbitrator that such conduct did in fact occur.
Arising from, attributable to or in any way connected with any
Claim first made against the Insured prior to the start of the
Period of Insurance.
12
5.13 MULTIPLE DAMAGES, FINES AND
PENALTIES
5.20WAR, TERRORISM AND NUCLEAR
MATERIAL
For:
a) caused by or arising directly or indirectly out of or in
connection with war, invasion, acts of foreign enemies,
hostilities or warlike operations (whether war be declared
or not), civil war, mutiny, civil commotion, coup, military
rising, insurrection, military or usurped power, rebellion,
revolution, confiscation, nationalisation, requisition or
looting, sacking or pillage, destruction of or damage to
a)
exemplary, aggravated, punitive or liquidated damages;
or
b)
fines or penalties.
5.14 OCCUPIER’S LIABILITY
Arising from, attributable to or in any way connected with
the Insured’s ownership, occupation, control or management
of real property.
5.15 RELATED PARTIES
Brought or maintained by or on behalf of:
a)
any other person or entity who is an Insured or a
subsidiary of an Insured; or
b)
any person or entity who or which is related to or
associated with an Insured.
5.16 RETROACTIVE DATE
Arising from, attributable to or in any way connected with any
act, error or omission occurring prior to the Retroactive Date.
5.17 RIGHTS OF CONTRIBUTION OR
INDEMNITY
b) property by or under the order of any government or local
authority;
c) for death, injury, illness, loss, damage, cost or expense
directly or indirectly caused by, contributed to by,
resulting from or arising out of or in connection with any
Act of Terrorism regardless of any other cause or event
contributing concurrently or in any other sequence to the
loss;
d) for death, injury, illness, loss, damage, cost or expense
directly or indirectly caused by, contributed to by, resulting
from, or arising out of or in connection with any action in
controlling, preventing, suppressing, retaliating against, or
responding to any Act of Terrorism; or
e) caused by or arising directly or indirectly out of or in
connection with nuclear weapons material or ionising
radiation or contamination by radioactivity from any
nuclear fuel or nuclear waste or from the combustion of
nuclear fuel or from any other self- sustaining process of
nuclear fission.
In respect of which the Insured has at any time foregone,
waived, excluded or limited a right of recovery against any
other person, firm or entity, but only to the extent that the
Insurer is prevented from exercising a recovery action for
compensation from such parties.
5.18SANCTIONS
To the extent that the provision of such cover, payment or
benefit is prohibited by law or by doing so will expose the
Insurer to any sanction, prohibition or restriction under United
Nations resolutions or any applicable trade or economic
sanctions, laws or regulations.
5.19 TRADING DEBT
Arising from, attributable to or in any way connected with any
trading debt incurred by the Insured or any guarantee given
by the Insured for any debt.
13
6. CLAIMS CONDITIONS
6.1CLAIMS REPORTING
The Insured must give to the Insurer immediate notice in
writing of any Claim against the Insured or Loss. Such notice
shall be within the Period of Insurance and sent to The Claims
Manager, Calibre Insurance, Level 8, 1 Pacific Highway, North
Sydney, NSW 2060.
6.2 CLAIMS CO-OPERATION AND MITIGATION
The Insured will not make any offer or payment or admit
liability for or settle any Claim or matter covered by this Policy
or incur any costs or expenses or otherwise assume any
liability in connection therewith without the written consent
of the Insurer. The Insured shall not forego, waive, exclude or
limit any rights of recovery. The Insured shall otherwise, at
its own cost, diligently do all things reasonably practicable to
avoid or minimise any liability.
The Insurer shall not be liable for any settlement or other
liability assumed, or costs and expenses incurred by the
Insured without the written consent of the Insurer.
The Insured shall, at its own cost, immediately provide to
the Insurer such assistance and information as the Insurer
may reasonably require to enable the Insurer to determine
whether or not the Insured is entitled to an indemnity under
this Policy, and to enable the Insurer to investigate and defend
any Claim.
6.3 CONDUCT OF DEFENCE
The Insurer shall be entitled at any time to take over and
conduct in the name of the Insured the investigation, defence
and/or settlement of any Claim or Loss. Any amounts incurred
by the Insurer or the Insured with the written consent of the
Insurer in the conduct of the defence on behalf of the Insured
shall be deemed to be part of Defence Costs.
If the conduct of the defence of a Claim or Loss is assumed by
the Insurer, or the Insured is permitted by the Insurer to
expend costs and expenses in the defence of the Claim,
without prejudice to the question of indemnity until sufficient
facts and information are available to make a decision on the
question of indemnity, this does not:
a) indicate an Insured is entitled to indemnity under the
Policy; or
b) waive or prejudice the Insurer’s rights under the Policy.
6.4 DISCHARGE OF LIABILITY
If in the opinion of the Insurer the amount required to dispose
of any Claim may exceed the available Limit of Indemnity, the
Insurer shall be entitled, at its discretion, to discharge its
liability by paying (or agreeing to pay upon settlement of the
Claim) the available Limit of Indemnity to the Insured or on the
Insured’s behalf and paying the Defence Costs incurred up to
the time of election to discharge its liability. If at the time of
making such an election the Insurer is conducting the defence
14
of the Claim, the Insurer shall relinquish conduct. The Insurer
shall have no further liability for Defence Costs after written
notice of such election has been given to the Insured.
If the Insured disagrees with a Claim settlement recommended
by the Insurer, the Insured may elect to contest such Claim.
However, the liability of the Insurer in respect of the Claim will
not exceed the amount for which the Claim could have been so
settled plus the Defence Costs incurred up to the date of such
election, less the Excess.
6.5 OTHER INSURANCE
If for any Claim, Defence Costs or Loss there is any other
insurance or indemnity which may afford indemnity to the
Insured or a right of contribution by the Insurer, the Insured
shall notify the Insurer and provide full details of such other
insurance or indemnity and such further information as the
Insurer may reasonably require.
6.6 SENIOR COUNSEL
If a dispute arises between the Insurer and Insured as to
whether or not to contest any legal proceedings, neither the
Insurer nor the Insured shall be required to contest such legal
proceedings unless a Senior Counsel (to be mutually agreed
upon by the Insurer and the Insured or, failing agreement, the
President of the Law Society or equivalent body in the State
where the Claim is being heard or defended) shall advise that
such proceedings should be contested. Senior Counsel shall
advise having regard to the economics of the matter, the
damages and costs which are likely to be recovered against
the Insured and the likely Defence Costs that will be incurred
in defending the Claim. The costs of Senior Counsel so advising
will be Defence Costs.
6.7 REPRESENTATION ISSUES
The lawyers instructed by the Insurer to act on the Insured’s
behalf can disclose to the Insurer any information they receive
in that capacity, whenever and from wherever it is obtained.
The Insured agrees to waive any legal professional or client
privilege to the extent such privilege may have prevented
disclosure to or use of that information by the Insurer. By
claiming under this Policy the Insured authorises such lawyers
to disclose this information to the Insurer and waives any claims
for legal professional or client privilege as against the Insurer.
If there is a dispute between the Insured and the Insurer,
the lawyers appointed by the Insurer to conduct the
defence of the Claim will also continue to advise the
Insurer on all issues, including but not limited to the right
of the Insured to indemnity under the Policy or any
related issue. It is agreed that this will not prevent those
lawyers from acting on the defence of the Claim on the
instructions of the Insurer.
If any actual or potential conflict arises between the
respective interests of the Insured and the Insurer, the
lawyers appointed by the Insurer to investigate and defend
the Claim may cease acting on behalf of the Insured and
continue to advise the Insurer in any dispute with respect to
the entitlement of the Insured to indemnity under the Policy.
The Insured agrees that all communications between the
Insurer and the lawyers appointed by the Insurer to
investigate, defend or settle a Claim are privileged as between
the Insurer and the lawyers and that the Insured is not
entitled to demand, access or obtain any such communications
or information contained therein.
7. GENERAL CONDITIONS
7.1CANCELLATION
7.3GOVERNING LAW
This Policy may be cancelled by the Insured giving written
notice to the Insurer at any time. This Policy may be cancelled
by the Insurer in accordance with the Insurance Contracts Act
1984 (Cth).
This Policy is to be governed by the laws of Australia and the
State or Territory where the Policy was issued. The relevant
courts of the place where the Policy was issued shall have
jurisdiction in any dispute concerning or under this Policy.
Upon cancellation by the Insured a refund of premium will
be allowed, pro-rata less 15% for the unexpired portion of
the Period of Insurance and any non-refundable government
charges, taxes and levies. If there has been a notification of a
Claim or Loss the Insured is not entitled to a premium refund.
7.2EXCESS
The Insurer’s liability under this Policy shall apply only to that
part of the amount, up to the available Limit of Indemnity,
required to dispose of a Claim, which exceeds the Excess.
Such Excess will be borne by the Insured and shall remain
uninsured. The Excess is inclusive of Defence Costs.
The Excess applies to each Claim covered by this Policy.
However, where more than one Claim arises from or is
attributable to the same act, error or omission or a series of
related acts, errors or omissions, only one Excess is payable
under the Policy.
In the event a payment required to dispose of a Claim does
not exceed the Excess, that part of the Excess not required to
dispose of such Claim shall be applied to the Defence Costs
otherwise paid or payable by the Insurer and such amount
shall be paid by the Insured to the Insurer or at its direction on
request.
Where the Insurer makes a payment in respect of a Claim,
including for Defence Costs, which includes payment of part
or all of the Excess, the Insured shall within 30 days of being
notified by the Insurer reimburse the Insurer for the amount of
the Excess paid by the Insurer on behalf of the Insured.
7.4GST BASIS OF SETTLEMENT
The amount that the Insurer is liable to pay under this Policy
will be reduced by the amount of any input tax credit that the
Insured is or may be entitled to claim for the supply of goods
or services covered by that payment.
If the Insured is entitled to an input tax credit for the premium,
the Insured must inform the Insurer of the extent of that
entitlement at or before the time the Insured makes a claim
under this Policy. The Insurer will not indemnify the Insured
for any GST liability, fines or penalties that arise from or is
attributable to the Insured’s failure to notify the Insurer of the
Insured’s entitlement (or correct entitlement) to an input tax
credit on the premium.
If the Insured is liable to pay an Excess under this Policy, the
amount payable will be calculated after deduction of any input
tax credit that the Insured is or may be entitled to claim on
payment of the Excess.
7.5 INSURANCE CONTRACTS ACT 1984
Nothing contained in this Policy will be construed to reduce
or waive either the Insured or the Insurer’s privileges, rights
or remedies available under the Insurance Contracts Act 1984
(Cth).
15
7.6 INTERPRETATION
Paragraph headings are included for convenience only and do
not form part of this Policy for the purposes of interpretation
of this Policy. Words and expressions in the singular include
the plural and vice versa.
7.7 MATERIAL CHANGES TO THE RISK
The Insured will immediately advise the Insurer of any
material alteration to the Insured’s Professional Services
including but not limited to:
a) any change in the nature of the services comprising the
Professional Services; or
b) any merger with or acquisition by the Insured of, or
acquisition of the Insured by, any other business; or
c) an Insured going into bankruptcy, administration,
receivership or liquidation; or
d) an Insured entering into a debt agreement or arrangement
with creditors; or
e) the cancellation or suspension of, or the imposing
of special conditions upon, the Insured’s statutory
professional registration or licensing or registration with a
professional association.
7.8 SUBROGATION
In the event of a payment under this Policy to the Insured
or on its behalf the Insurer will, subject to the Insurance
Contracts Act 1984 (Cth), be subrogated to all the Insured’s
rights of recovery against all persons and organisations and
the Insured will execute and deliver instruments and papers
and do all that is necessary to assist the Insured in the exercise
of such rights.
7.9 SEVERABILITY
The Insurer agrees that any conduct on the part of any party
who is an Insured, whereby such party breached the duty of
disclosure or made a misrepresentation to the Insurer before
this contract was entered into, will not prejudice the right
of any other party who is an Insured to indemnity under the
Policy.
Provided that such other Insured:
a) is innocent of and has no prior knowledge of any such
conduct; and
b) will immediately upon becoming aware of any such
conduct advise the Insurer in writing of all known facts in
relation to such conduct.
Nothing in this condition relieves any Insured from the duty of
disclosure owed to the Insurer.
16
Level 8, 1 Pacific Highway
North Sydney, NSW 2060
P 1300 306 226 | F 1300 559 936
calibreinsurance.com.au
Calibre Commercial Insurance Pty Ltd (ABN 86 603 039
023, AFSL 474540) (‘Calibre Insurance’) is a subsidiary of
Munich Re, part of Munich Re (Group). Munich Re (Group)
is one of the largest insurance groups in the world.
© Calibre Commercial Insurance Pty Ltd 2016
Insured and issued by Great Lakes Reinsurance (UK) SE
(a member of the global Munich Re (Group))
ARBN 127 740 532 ABN 18 964 580 576 AFSL 318603
trading as Great Lakes Australia.
CBRI PI 0616 Effective Date 14 June 2016