Professional Indemnity

Professional Indemnity

Covers your liability and certain cost exposures when giving advice, completing design work or related conduct in the course of your professional business.

Please note that some covers under this policy operate on a ‘claims made and notified’ basis.  In broad term this means that cover is provided when a claim is made and notified within the period of insurance regardless of when the circumstances giving rise to the claim originally occurred.    For there to be cover it is also necessary for there to be continuous cover from the date when the circumstances giving rise to the claim occurred.

What Liability You Are Insured For

Covers your civil liability as a result of you conducting your professional business.

Cover, with our prior consent, for the defence costs you incur in the defence, or settlement, of any covered claim.

Additional Benefits

Cover for liability in the event you unintentionally make a defamatory statement in connection with your professional business.

Cover for liability due to the dishonest, fraudulent, criminal, reckless, or malicious conduct of an employee.

Cover for civil liability to pay compensation resulting from you breaching the Fair Trading Act 1986, Consumer Guarantees Act 1993 or similar legislation.

Cover, within New Zealand and Australia, for loss or damage to, or destruction of, documents including electronic documents.

Cover for liability when you unintentional breach or infringe privacy, or use confidential information, trademarks, trade secrets, patents, copyright, registered designs or the system or programs of others, in the course of your professional business.

Continued cover, if certain requirements are met, when you fail to earlier advise us of circumstances of a possible or actual claim and there is no fraudulent non-disclosure involved.

Cover, when certain requirements are satisfied, for civil liability both before and during the current period of insurance resulting from the work of a business you acquire or merge with that you have earlier notified us of. 

Cover when a covered claim against you is also made against your spouse (including someone you are legally married to, or who you live together and are in a defacto relationship with) due to their relationship status with you, or their ownership or other interest in property that is subject of a remedy sought by a third party.

Cover, with our prior consent, for media costs (including electronic, broadcast and print media) you incur during the period of insurance to comply with any official requirement following a privacy breach that is in the course of your professional business.

Cover for the proportionate civil liability you incur in the conduct of your professional business as a joint venture partner, provided we have earlier agreed to cover this joint venture and certain other requirements are satisfied.   

Cover for your vicarious liability arising from the work performed by contractors and sub-contractors in the course of your professional business. There is also cover for contractos/sub-contractors own civil liability provided they earn more than 80% of their income from you.

Cover for the public relations costs incurred to protect your reputation in the event this is brought into question due a claim arising in the course of your professional business.

Up to $50,000 of cover for your emergency defence costs in the event that it not reasonably possible to obtain our consent before incurring them, provided that our consent is obtained within 30 days of these costs first being incurred.

Cover for disruption expenses incurred during the period of insurance when you or your employee is required to attend court as a witness in respect of a covered claim.

Cover, with our prior consent, for the costs of legal representation at any judicial review, official investigation, examination or inquiry, or body legally empowered to investigate your professional conduct, in connection with your professional business that you are required to attend.

Covers you for the loss of money or other property owned by you, or for which you are legally liable, due to your employee’s dishonest or fraudulent conduct in the course of your professional business.

Civil liability cover for you prior to joining the insured business provided that the prior business was substantially the same kind of business, you were working in a professional capacity at that time and the civil liability arose after the relevant retroactive date.  There is also cover for any former partners of the insured business that you have earlier advised us of.

In the event the policy is cancelled, or not renewed or replaced with an equivalent policy, cover will be automatically extended until 30 days after the date of expiry.

Optional extras

Cover for liability arising out of the actual, alleged or threatened accidental and unintended discharge of pollutants in the course of your professional business due to your negligence.

Covers you for damages and defence costs arising from a breach of a security system or procedure maintained by you for the storage of your clients’ confidential information in connection with your business, or if your computer system infects a client’s computer system with a computer virus or another type of electronic infection causing damage or disruption.

This benefit automatically reinstates the relevant cover limit if it is exhausted due to a claim.  The maximum amount we will pay out for all claims in any one period of insurance is double the relevant limit of indemnity.

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