Exclusive professional indemnity rates
Exclusive professional indemnity
AusIMM Platinum Resource Professional Indemnity Insurance policy wording
Benefits for AusIMM members
We are pleased to convey that as the endorsed Insurance Broker to AuSIMM we have been able to negotiate upgraded cover from the Previous Professional Indemnity Insurance wording on offer. The improved wording was released on 1st May 2018 includes additional benefits at no change to premium rates.
Resource Professionals encompass a range of specialised occupations and it is essential to have appropriate cover. Your Professional Indemnity provides for indemnity for civil liability actions against you arising out of your Professional Business under the newly branded name of AusIMM Platinum Resource Professional Indemnity Insurance.
New inclusions to the policy wording include:
- Advancement of Defence Costs extension in order to defend Insured’s in the event of a claim or circumstance ahead of determination of entitlement to indemnity;
- Contractual Liability Defence Costs extension to $100,000 for a straight breach of contract arising from your Professional Duty that is not otherwise covered which is essentially an extra addition that brings the wording to a new standard.
- Reinstatement of the Indemnity limit. For clarity this is now addressed in the wording, in addition to the schedule, to show that the Indemnity limit has one automatic reinstatement, i.e. if the Indemnity limit is $1,000,000 per claim, it is $2,000,000 in the aggregate for the period of Insurance.
Increased covers to existing extensions within the wording:
- Statutory Fine and Penalties extension – increased from $250,000 to $500,000. This is an important adjustment to increase the limit as civil penalties imposed under Statute have increased. Your breach may be unintentional however strict liability may apply. If a fine or penalty arises out of your professional advice and the law permits indemnification of the cost of the fine or penalty, the policy will respond.
- Loss of Documents extension – increased from $500,000 to full policy limit for costs and expenses to have documents replaced / restored due to a physical loss or damage to such documents used to conduct your Business;
- Inquiry Costs extension – improved wording extends to representation of the Insured at any inquiry or other proceeding and is not limited to Regulatory Inquiries. Cover is increased to $1,000,000 in addition to the limit of liability. This section also does not require a claim under the Insuring clause to trigger the extension.
- Mitigation Costs extension – increased from $50,000 to $250,000. This is a significant increase in order to take reasonable action to reduce the amount of any potential claim.
- Bodily Injury and Property Damage cover – now broader, covering claims directly and indirectly arising out of your Professional Duty in the conduct of your business. Previously only provided cover for direct bodily injury or property damage.
- Pollution cover – now covering claims directly and indirectly arising out of a Professional Duty. This is a very important upgrade for professionals involved in environmental work who become involved in an action arising out of issues of pollution. Previously the wording only provided cover for a direct breach of professional duty. Please note that site clean-up costs are not covered by this policy.
- Territorial Limits have improved to Worldwide. USA/Canada is no longer excluded from the coverage and negotiation for specialist USA cover is now not required. This is important for those performing work in these countries. The Court Jurisdiction still excludes USA / Canada and representation is still particularly arduous and costly in the Northern American court system. From an Insurer view point it is preferable that if an action arises against you, it occurs elsewhere preferably under Australian law.
- Joint Venture Liability – clarification of intention that cover applies to the Insured in a Joint Venture, however despite this, it is necessary to advise participation in a Joint Venture and Joint Venture entity in advance in order for cover to be agreed in writing by the Insurer.
The new wording is designed for Resource Professionals and still includes additional JORC endorsements to cater for specialist’s activities within the Mining Profession as required.
Importantly, if your occupation involves estimating or valuing minerals and you report and sign off to attest to this it is essential to disclose this activity and, an endorsement to the wording can be arranged to override the standard exclusions. The valuation or estimation of any resources must adhere to the Valmin Code, Society of Petroleum Engineers or JORC guidelines.
Professional Indemnity is the key product for advice giving professionals and is still essential to combine with Public Liability Insurance which is often required for visiting sites and provides coverage in the event that accidental bodily injury or property damage occurred. As far as possible we look to arrange Professional Indemnity and Public Liability with the same Insurer, particularly for more complex risks in order to minimise potential gaps in cover.
As for previously, on the Public Liability Insurance policy side whilst a lot of Resource Professionals do not conduct manual work our policies can give consideration to going underground, blue collar work, direct supervision of manual activities or blasting activities. It is important that these type of activities are disclosed as standard policy exclusions may require amendment or deletion.
Importantly, in conducting your Business as Resource Professionals there may be other Insurances you need to arrange depending on your individual activities. You may give consideration to the following coverages:
- Office insurance – for static location/s that you work from;
- Electronic equipment / portable property – equipment that goes with you outside the office including laptops and cameras, as well as surveying equipment;
- Corporate travel – economical annual policy for both interstate and overseas business trips and leisure travel for directors. Coverage includes medical and luggage benefits.
- Management Liability Insurance – Package policy incorporating cover for Directors and Officers, Employment Practices Liability if you have employees, Statutory Liability, Taxation Investigation;
- Cyber Insurance – cover for cyber events including, investigation, privacy and notification, extortion, identity theft and computer crime;
- Workers compensation – statutory product for injury to employees;
- Income protection – protection if your ability to earn income changes;
As the AusIMM endorsed Insurance Broker we would be happy to discuss any or all of these classes of Insurance with you and arrange on your behalf in order that you can get back to what you do best as a Resource Professional.
For obligation free quotations please phone 1800 245 123 or request a quotation
This advice and comments are provided in the capacity as your insurance broker and should not be construed as legal advice. Separate legal advice relating to the interpretation and implication of this article for your individual contracts should be obtained.
