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What type of Professional Indemnity cover is right for me? Profiling: I C Frith & Associates
Phone
David Ferris of IC Frith today for all your professional Indemnity insurance
cover on: (02) 8853 9100
Professional indemnity insurance is an essential insurance cover for any
professional firm that is selling their advice or skills to members of the
public.
No longer are Professional Indemnity exposures limited to
the “traditional professions” of doctors, lawyers architects and consultants.
Speak to a professional Insurance Broker like IC Frith and Associates to get
a custom professional indemnity insurance package for your small business
insurance cover.
Visit our comprehensive list of Australian
Insurance Brokers
Professional Indemnity Insurance
Profiling: I C Frith & Associates
NorWest Business Park,
Capital Business Centre,
Suite 1, Building B,
34-46 Brookhollow Avenue,
Baulkham Hills New South Wales 2153
Phone: (02) 8853 9100
Demystifying Professional Indemnity
The Fundamentals of Professional Indemnity Insurance and
Risk. Prepared for Australasian Institute of Engineer Surveyors
Written By David Ferris
Introduction – who is IC Frith?
IC Frith are a General Insurance Broker, Australia’s largest privately owned
insurance firm. We have offices in Sydney, Perth, Adelaide, Melbourne,
Brisbane.
Our National Head Office is located in Sydney’s Norwest Business Park.
The international offices are in New Zealand (3) and Singapore.
IC Frith has been in business for 26 years and specialise
in “tailoring risk solutions” for Associations and Affinity Groups
Introduction – who is David Ferris?
David has worked the Insurance Industry for over 30 years in
the following areas;
Loss Control / Risk Management / Insurance underwriting
Reinsurance / Agency Management / Broking
National Accounts and Affinity Manager
In 2009 it is his 4th year at IC Frith
Presentation goals –
To enhance your understanding of Professional Indemnity as a class of
insurance –
Explaining PI terminology / definitions
Detailing policy coverage triggers
Evaluate required underwriting information
Assist you to improve your PI insurability –
outline risk and risk management
identify what influences pricing
Understand claims types
Association opportunities
Questions
Introduction
Professional Indemnity
Legal proceedings for negligent advice and/or services are not restricted to the
traditional professions
The everyday activities of your company and your people can leave you exposed
The provision of services and offering of advice can leave you open to
allegations of negligence and the ever-increasing possibility of civil actions
against your company or its employees
Definitions – Insurance Terminology
What is “Insurance”?
Transfer of risk and uncertainty to an insurance company
Basic principle –
…where the small contributions of many, pay for the losses of the few…
Assists businesses to manage risks / protect against particular insured events
Definitions – Insurance Terminology
What is a “Professional”?
Anyone who gives to another person, advice and/or Services of a skill, which can
be relied upon by another,
One who exercises or professes to have a special skill.
No longer limited to traditional Professions – lawyer, doctor, engineers,
architects.
What is “Professional Duty”?
A professional owes a duty of care to a client or third party in the performance
of their professional work
All service providers have a legal liability to clients and third parties
Duty may be owed in tort (any civil wrong doing) or in contract
Professional Indemnity Insurance
Protects professionals for claims made against them by any third party affected
by the provision of their professional activities
Financial loss / injury or damage
Aims to protect professional’s assets
Insurer promises to pay (indemnify) the Professional
Basically, insures you against your skill
Professional Indemnity coverage
Protection of -
Company / Principals
Partners
employees
Protection for –
Settlements / judgements
Investigation cost / defence costs
Professional Indemnity coverage
No longer simply Breach of Professional duty / negligence,
now is more
comprehensive Civil Liability Professional Indemnity
Examples of Civil liabilities –
Breach of Duty
Unintentional defamation
Dishonest / fraudulent / criminal
Loss / Damage to documents
Breach of fiduciary duty (innocent party)
Unintentional infringement Intellectual Property
Misleading / deceptive conduct
Breaches of Trade Practices
Policy Period -
Commences at Policy inception (start) and concludes at Policy expiration (end) -
usually an annual period
Claims Made
provide access to Indemnity for claims made against the Professional and
reported to the Insurer during the Policy period.
Run - off cover
As cover is claims made, requires an in-force policy in order for claim to be
triggered.
When PI coverage ceases, a business remains exposed to all the previous year’s
unknown and unreported potential for incident / claims.
Notifications
Insurers require notification of –
Fact, situation or circumstance, which
A reasonable person in your profession,
Considers may result in someone claiming
Why Notify ?
- In order to avoid complications should later materialise
- Insurers may be able to assist with claim and;
- Claim may be more widespread – other claimants may have
the need to claim on there own insurance policies
“The insurer agrees......”
is a promise to pay contract between Insurer and Insured. It is a
promise based upon all information supplied to insurer via the Proposal
“to Indemnify the Insured......”
make good for an insurable event and
pay on insured’s behalf.
I look forward to exploring such opportunities with your executive
Thank you
David Ferris
National Accounts and Affinity Manager
IC Frith and Associates
david.ferris@icfrith.com.au
0413 744 603
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