Check that your full business name is correctly listed. This needs to be the legal entity in which you trade under.
2. Business Description
Ensure that the business description correctly reflects the business services that are insured under the policy.
3. Prior Business
Ensure all prior company names (legal entities) are listed under the insured name and that the Business Services are listed under the Business Description. (If they are not listed, it is likely you are not covered for work undertaken through these entities).
4. Retro-active Date
The retro-active date should provide cover for either unlimited date or the date your business commenced. In some circumstances, insurers may not be able to provide full information from the date your business commenced if no previous professional indemnity insurance was in place before.
5. Policy Limits (Limit of Indemnity)
Review your policy limit to ensure that you are adequately protected. Consider your prior, current and forthcoming work.
6. Policy Excess
Minimum excesses are set by insurance companies. Whilst increasing your excess may have a slight reduction in premium (generally not more than 5–10%), the premium saving should be compared to the additional amount payable in the event of a claim or multiple claims.
7. Territorial and Jurisdictional Limits
Insurance policies issued within Australia provide at minimum Australian Territorial and Jurisdictional Limits. If you are providing products and services to or in other countries, then you should ensure that your policy is suitable for this.
8. Policy Extensions
Review the policy extensions to ensure that you understand the nature of cover provided.
9. Policy Endorsements, Exclusions & Conditions
Review the policy endorsements, exclusions and conditions to ensure that you understand the extent of the cover provided.
10. Claims & Notifications of Circumstances
It is extremely important in order to comply with the policy coverage to notify all claims or circumstances to your insurer in the year that they arose, prior to the expiry of your policy.
Failure to do so may result in a claim not being insured. Ask all your employees/ contractors to confirm in writing that they are not aware of any circumstances or claims against them. Encourage openness and not a culture of fear regarding notifications to PI Insurers. If in doubt, refer any issues to your insurance broker or adviser, or in their absence directly to your PI Insurer.
The policyholder has an obligation to understand the terms of the contract. Whilst an insurance broker’s role is to provide advice and to ensure that the policy is in accordance with your instructions, current legislation places responsibility on all parties to an Insurance Contract to be aware of the details of that Contract. We recommend you read these documents in conjunction with the Policy Wording and retain these documents and that you keep them both in a safe place.
Disclaimer – “This material contains general information only and may not suit your particular circumstances. To decide if a policy is right for you please carefully read the relevant Product Disclosure Statement (PDS) and/or Policy wording. While we have exercised due care and skill in preparing this information, Optimum Insurance Services (Optimum) does not accept any legal responsibility or liability for negligence or otherwise to you or anyone else who seeks to rely on this information. This includes, without limitation, loss arising from a possible failure of the information to comply with statutory or regulatory requirements or the failure of the information to identify other terms and conditions beyond those considered in this document. You should obtain advice to ensure that your policy provides adequate cover for your circumstances.
“Optimum Insurance Services Pty Ltd is a Corporate Authorised Representative of Insurance Advisernet Australia Pty Ltd (Car No. 291220), Australian Financial Services Licence No 240549, ABN 15 003 886 687.