Professional Indemnity Insurance
No matter your experience or qualifications we are all likely to make a mistake or worse still, deal with a client who believes you have made one. Only a professional indemnity insurance policy can protect you from any such unpredictable scenario.
Whether or not your advice or design was negligent, or your hard earned professional reputation is questioned, Professional Indemnity Insurance protects you and your business are against potential allegations made against you and provides protection against expensive and time consuming litigation.
McKenzie Ross employs experienced professional indemnity practitioners who will provide you with a comprehensive review of your professional exposure and provide a tailored professional indemnity insurance solution to suit your practice’s needs.
In addition to your clients , businesses are also exposed to potential litigation from:
- Regulatory Authorities such as the ACCC, ASIC or the OPC.
- Government Registration Bodies such as the Tax Practitioners Board or Medical Registration Board
- Your professional associations who governs the rules and regulations regarding your business
- Another third party who suffers a financial or bodily injury due to the performance of your professional services.
Design & Construct Professional Indemnity
Design and Construct (D&C) insurance is a Professional Indemnity (PI) product, specifically designed to cater for entities that perform physical construction and installation, plus also design the products and systems they are installing or constructing. The policy provides protection for a business against claims for loss arising out of a breach of professional duty in the exercise and conduct of the activities and duties of the business.
Why D&C Over Standard Professional Indemnity?
Any entity that is involved in design and construction activities, including the provision of advice, design, physical construction, erection or installation should consider D&C Professional Indemnity.
D&C policies include a number of additional coverage extensions, (and most importantly do not contain a supply of goods exclusion) that are not available under traditional PI offerings. D&C Professional Indemnity ensures design and construct professionals can manage their risks and exposures within an ever increasing and complex industry.
A large proportion of contracts for construction require design and construct entities to maintain their own PI insurance policies. More importantly, customers are becoming increasingly aware of their rights to pursue design entities where they believe those entities are responsible for loss they have suffered in relation to poor or inadequate design. Claims for financial loss can be made against a business for a number of reasons, including:
- Failure to exercise your professional duty
- Breaching misleading and deceptive conduct provisions of consumer legislation
- Breaches of intellectual property rights
- Breach of contract
- Failure to warn
Extensive Legal costs and expenses can be incurred even in cases where the claim made against a business is unfounded.
Under a D&C policy, a claim will trigger the policy when there is a breach of professional duties, by Professional Staff, in relation to the Activities and Duties of those Professional Staff.
Activities and duties can be more specifically defined as follows:
- Specification of technical requirements including technical requirements of any products or goods supplied
- Project management
- Feasibility studies
- Programming and time flow management
- The provision of advice or technical information, plus
- Such additional services as declared
Cover For Deemed Employees
Coverage under a D&C policy automatically extends to include contractors and consultants who are deemed employees under Australian workers’ compensation laws.
Coverage can be provided under a D&C policy for claims arising from sudden & accidental pollution.
Limitation Of Liability Contracts
Express language is included within a D&C policy confirming that coverage will not be excluded solely on the basis of the business agreeing to any indemnity or hold-harmless conditions. Without this language, coverage could be excluded under the Contractual or Assumed Liability Exclusion of a policy.
Implied Warranties & Conditions
A D&C policy extends to include coverage for Claims for civil liability alleging a breach of warranty or condition with respect to fitness for purpose, merchantable quality or due care and skill that are implied into contracts under common law.
Cover under a D&C policy extends to your Principals, where a claim is made directly against them arising from your activities and duties.
Bodily Injury & Property Damage
A D&C policy can provide coverage for Claims for bodily injury and property damage where it arises out of the conduct of the Activities & Duties of a business. This coverage is typically excluded under standard PI offerings where it arises from a breach of professional duty.
Contractual & Novated Contractual Liability
McKenzie Ross can arrange coverage for Claims made under an indemnity or hold-harmless provision of a contact. This coverage is typically excluded under a Contractual or Assumed Liability Exclusion within most typical PI and Public Liability offerings.
Coverage for Claims for civil liability assumed by the Insured as a result of them contracting out of Proportionate Liability Legislation. Typically, this coverage would normally be excluded under a Contractual or Assumed Liability Exclusion as well.
Need guidance on the type of commercial insurance product or service that’s best for you? Talk to our broking teams today – Call us on (03) 9691 2222
Key Benefits Of Using McKenzie Ross
High level assurance that risks are transferred where intended.
A greater understanding of the risks retained in your organisation, some of which may require alternative management methods.
A formal process of risk identification that demonstrates good corporate governance to stakeholders.
Linkage between insurance and your organisation’s overall process for risk management.
Enhanced ability for ‘insurable’ risk to be transferred to insurance markets in the best possible light by demonstrating sophistication in identification and analysis.