professional indemnity policy design and construction · fidelity insurance 27. subsidiaries –...

Professional Indemnity Policy Design and ConstructionPolicy Document.

39309 POL810 Pro Indemnity_Design_cov_D5.indd 1 24/11/2015 1:50 pm

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• promotesbettercommunicationbetweeninsurersandcustomerswhichwillleadtobetterpublicunderstandingofinsurancetoallowcustomerstomakeinformedchoices,and

• outlinesgoodstandardsofpracticeandservicetobemetbyinsurerstoenhancetheirreputationforrespondingefficientlytotheircustomers’needs.

(a) Disputeresolutionprocess

Wewilldoeverythingpossibletoprovideaqualityservicetoyou.However,werecognisethatoccasionallytheremaybesomeaspectofourserviceoradecisionwehavemadethatyouwishtoqueryordrawtoourattention.

WehaveaComplaintsandDisputeResolutionProcedurewhichundertakestoprovideananswertoyourcomplaintwithinfifteen(15)workingdays.

Ifyouwouldliketomakeacomplaintoraccessourinternaldisputeresolutionservicepleasecontactournearestofficeandasktospeaktoadisputeresolutionspecialist.

(b) Contactforassistanceorconfirmationofcover

Ifyouneedtoconfirmanypolicytransactionorclarifyanyoftheinformationcontainedinthispolicydocumentorifyouhaveanyotherqueries,pleasecontactanyofourofficesorrefertoourwebsiteatwww.allianz.com.au.

(c) Ifthisinsurancehasbeenissuedthroughaninsuranceintermediary

Ifyourpolicyhasbeenarrangedthroughouragent,orabrokerwhoisactingunderanagencyarrangementsuchasabinderwithus,thentheyareactingasouragentandnotasyouragent.Theywilltellyouwhenthisisthecase.

Ifyourpolicyhasbeenarrangedbyabroker,otherthanabrokeractingundersuchanagencyarrangementwithus,thenthebrokerisactingasyouragent.

Wherethispolicyhasbeenarrangedthroughanintermediaryacommissionmaybepayablebyustothemforarrangingtheinsurance.

PrivacyThisdocumentsetsouthowweuse,collectanddisclosepersonalinformationaboutyou.Itsupplementsanyinformationaboutprivacyintheinsurancedocumentationwehaveprovidedorwillprovidetoyou.FurtherinformationisinourPrivacyPolicyavailableatwww.allianz.com.au

AtAllianz,ourpriorityistoprotecttheprivacyofyourpersonalinformation.WedothisbyhandlingpersonalinformationinaresponsiblemannerandinaccordancewiththePrivacyAct1988(Cth).

GeneralInformationTheGeneralInformationsetoutbelowisprovidedforyourinformationonly.Itdoesnotformpartoftheinsurancecontractwithyou,andisnotpartofthepolicy.NothingcontainedintheGeneralInformationimposescontractualobligationsonyou,orcreatescontractualrights.Thesearecontainedinthepolicyandanyendorsement.

ClaimsMadeThispolicyoperatesona‘claimsmade’basis.Thismeansthatthepolicycoversyouforclaimsmadeagainstyouduringtheperiodofinsurance.

Thepolicydoesnotprovidecoverinrelationto:

• acts,errorsoromissionsactuallyorallegedlycommittedpriortotheretroactivedateofthepolicy(ifsuchadateisspecified);

• claimsmadeaftertheexpiryoftheperiodofcovereventhoughtheeventgivingrisetotheclaimmayhaveoccurredduringtheperiodofcover;

• claimsnotifiedorarisingoutoffactsorcircumstancesnotified(orwhichoughtreasonablytohavebeennotified)underanypreviouspolicy;

• claimsmade,threatenedorintimatedagainstyoupriortothecommencementoftheperiodofcover;

• factsorcircumstancesofwhichyoufirstbecameawarepriortotheperiodofcover,andwhichyoukneworoughtreasonablytohaveknownhadthepotentialtogiverisetoaclaimunderthispolicy;

• claimsarisingoutofcircumstancesnotedontheproposalformforthecurrentperiodofcoveroronanypreviousproposalform.

Whereyougivenoticeinwritingtousofanyfactsthatmightgiverisetoaclaimagainstyouassoonasreasonablypracticableafteryoubecomeawareofthosefactsbutbeforetheexpiryoftheperiodofcover,youmayhaverightsunderSection40(3)oftheInsuranceContractsAct1984tobeindemnifiedinrespectofanyclaimsubsequentlymadeagainstyouarisingfromthosefactsnotwithstandingthattheclaimismadeaftertheexpiryoftheperiodofcover.Anysuchrightsariseunderthelegislationonly.Thetermsofthepolicyandtheeffectofthepolicyisthatyouarenotcoveredforclaimsmadeagainstyouaftertheexpiryoftheperiodofcover.

GeneralInsuranceCodeofPracticeWeareasignatorytotheGeneralInsuranceCodeofPractice.TheCodeaimstoraisestandardsofpracticeandserviceintheinsuranceindustry.It:

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ThecountriestowhichthisinformationmaybedisclosedwillvaryfromtimetotimebutmayincludeCanada,Germany,NewZealandandothercountriesinwhichtheAllianzGrouphasapresenceorengagessubcontractors.

Weregularlyreviewthesecurityofoursystemsthatareusedforsendingpersonalinformationoverseas.Anyinformationwedisclosetooverseasrecipientsmayonlybeusedforthepurposesofcollectiondetailedaboveandsystemadministration.

AccesstoYourPersonalInformationandComplaints

Youmayaskforaccesstothepersonalinformationweholdaboutyouandseekcorrectionbycalling1300360529EST8am6pm,MondaytoFriday.

OurPrivacyPolicycontainsdetailsabouthowyoumaymakeacomplaintaboutabreachoftheprivacyprinciplescontainedinthePrivacyAct1988(Cth)andhowwedealwithcomplaints.OurPrivacyPolicyisavailableatwww.allianz.com.au.

TelephoneCallRecording

Wemayrecordincomingand/oroutgoingtelephonecallsfortrainingorverificationpurposes.Ifyourequireaccesstoarecordedcall,acopyorappropriateaccesswillbeprovidedbyuswhereavailable.Itshouldbenotedthatnotallcallsarerecordedandthereforenotallcallswillbeaccessibleuponrequest.

YourDutyofDisclosureBeforeyouenterintoacontractofinsurancewithus,youhaveadutyundertheInsuranceContractsAct1984todisclosetouseverymatterthatyouknow,orcouldreasonablybeexpectedtoknow,isrelevanttoourdecisionwhethertoaccepttheriskoftheinsuranceand,ifso,onwhatterms.

Youhavethesamedutytodisclosethosematterstousbeforeyourenew,extend,varyorreinstatethecontract.

Thisdutyofdisclosureappliesuntilthecontractisenteredinto(orrenewed,extended,variedorreinstatedasapplicable).Wemayprovidefurtherinformationonyourdutypriortoanyrenewal,extension,variationorreinstatement.

Yourdutyhoweverdoesnotrequiredisclosureofanymatter:

• thatdiminishestherisktobeundertakenbyus;or

• thatisofcommonknowledge;or

• thatweknowor,intheordinarycourseofourbusinessasaninsurer,oughttoknow;or

• astowhichcompliancewithyourdutyiswaivedbyus.

HowWeCollectYourPersonalInformation

Weusuallycollectyourpersonalinformationfromyouoryouragents.Wemayalsocollectitfromouragentsandserviceproviders;otherinsurersandinsurancereferencebureaus;peoplewhoareinvolvedinaclaimorassistusininvestigatingorprocessingclaims,includingthirdpartiesclaimingunderyourpolicy,witnessesandmedicalpractitioners;thirdpartieswhomaybearranginginsurancecoverforagroupthatyouareapartof;lawenforcement,disputeresolutionbodiesandstatutoryandregulatorybodies;marketinglistsandindustrydatabases;andpubliclyavailablesources.

WhyWeCollectYourPersonalInformation

Wecollectyourpersonalinformationtoenableustoprovideourproductsandservices,includingtoprocessandsettleclaims;offerourproductsandservicesandtheproductsandservicesofourrelatedcompanies,brokers,intermediariesandbusinesspartnersthatmayinterestyou;andconductmarketorcustomerresearchandtodeterminethoseproductsorserviceswhichmayparticularlysuityou.Youcanchoosenottoreceiveproductorserviceofferingsfromusorourrelatedcompanies,brokers,intermediariesand/orourbusinesspartnersbycallingtheAllianzDirectMarketingPrivacyServiceLineon1300360529EST8amto6pmMondaytoFridayorgoingonlinetoourwebsite’sPrivacysectionatwww.allianz.com.au

WhoDoWeDiscloseYourPersonalInformationTo?

Wediscloseyourpersonalinformationtopeoplewhoassistusinofferingandprovidingourproductsandservices,conductingmarketorcustomerresearch(includingtodeterminethoseproductsorserviceswhichmayparticularlysuityou),orinactivitiesrelatedtocarryingonourinsurancebusiness,includinginsurers,insuranceintermediaries,reinsurers,insurancereferencebureaus,partieswithwhomwehavearelationshiporinsuranceschemeinplacewiththemunderwhichyoupurchasedyourpolicy(suchasafinancierormotorvehiclemanufacturerand/ordealer)andothers;toourintermediariesorbusinesspartnerstoenablethemtooffertheirproductsandservicestoyou;asrequiredbylaworgovernment,lawenforcementbodiesordisputeresolutionbodies.

DisclosureOverseas

YourpersonalinformationmaybedisclosedtoothercompaniesintheAllianzGroup,businesspartners,reinsurersandserviceprovidersthatmaybelocatedinAustraliaoroverseas.


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Non-disclosure

Ifyoufailtocomplywithyourdutyofdisclosure,wemaybeentitledtoreduceourliabilityunderthecontractinrespectofaclaim,cancelthecontractorboth.

Ifyournon-disclosureisfraudulent,wemayalsohavetheoptionofavoidingthecontractfromitsbeginning.


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TableofcontentsProfessionalIndemnityPolicyPart1–WhatWeInsureYouFor

1. InsuringClause

2. DefenceCosts

3. LimitofIndemnity

4. Deductible

5. ExtentofIndemnity

6. MultipleClaims

Part2–AutomaticExtensions

7. Consultants,Sub-contractorsandAgents

8. ContinuousCover

9. InsurancePreparationCosts

10. CourtAttendance

11. DomesticPartners

12. ExtendedNotificationPeriod

13. EstatesandLegalRepresentatives

14. FormerSubsidiary,FormerPrincipalsetc

15. FraudandDishonesty

16. InquiryCosts

17. JointVentures

18. LossofDocuments

19. MitigationCosts

20. NewlyAcquiredorCreatedSubsidiaries

21. PublicRelationsExpenses

22. Run-OffCoverUntilExpiryofPeriodofCover

23. Imputation

24. PrincipalsIndemnity

Part3–OptionalExtensions

25. BreachofPrivacy:ResponseCostsandFinesandPenalties

26. FidelityInsurance

27. Subsidiaries–Pre-AcquisitionLiability

28. JointVentures

29. PreviousBusiness

30.Run-offafterMerger,TakeoverorSale

31.IncomingContinuousCover

32.ContractualLiability

33.LimitationofLiability

34.NovatedContracts

35.CollateralWarranties

36.ProportionateLiabilityWaiver

37.WorkplaceStatutoryLiabilityInsurance

Part4–Exclusions

38. Asbestos

39. AssociatedPersonsorEntities

40. ContractualLiability/GuaranteeorWarranty

41. FinesandPenalties


43. ObligationtoEmployees

44. RadioactivityandNuclearRisk

45. PriorClaims/Circumstances

46. RetroactiveDate

47. TradingDebts

48. USAJurisdiction

49. WarandTerrorism

50.CostsEstimates

51.Insolvency

52.InsuranceandFinancialAdvice

53.Manufacturing,ConstructionandPropertyDevelopment

54.PersonalInjuryandPropertyDamage

55.UseofProperty

Part5–ClaimsConditions

56. Notification

57. Co-operation

58. Mitigation

59. OurConsent

60. DefenceandSettlement

61. Disputes

62. ElectiontoContest

63. Allocation


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Part6–OtherConditions

64. Assignment

65. Cancellation

66. ChangeofControl

67. Currency

68. GST

69. Plurals,HeadingsandTitles,Interpretation

70. ScopeandGoverningLaw

71. Subrogation

72. AlterationtoRisk

Part7–Definitions


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ProfessionalIndemnityPolicyWe,AllianzAustraliaInsuranceLimited,ABN15000122850,AFSLicenceNo.234708willprovideinsuranceinaccordancewiththetermsofthepolicy.

Thepolicywording,endorsementsandthescheduleshallbereadtogetherasonecontract(the“policy”).

Whenreadingthispolicy,pleasenotethatsomewordsandphraseshavedefinedmeanings.ThelistofdefinedwordsandphrasesisincludedinPart7ofthepolicy.Thedefinedwordsandphrasesarehighlightedinblue.

Headingsaredescriptiveonlyandnotdefinedterms.

Part1–WhatWeInsureYouFor1. InsuringClause

1.1 General

Weagreetoindemnifyyouagainstallcivilliabilityfordamagesandawardsofclaimants’costsarisingfromanyclaimthat:

(a) arisesfromtheprovisionbyyouorfailurebyyoutoprovideprofessionalservices;and

(b) isfirstmadeagainstyouduringtheperiodofcover.

1.2 Thecivilliabilityreferredtoinsubclause1.1includes,butisnotrestrictedtocivilliabilityarisingoutof:

(a) anyactualorallegedmisleadingordeceptiveconductatlaworundertheCompetitionandConsumerAct2010(Cth),TradePracticesAct1974(Cth),AustralianSecuritiesandInvestmentsCommissionAct2001(Cth),CorporationsAct2001(Cth)oranyequivalentprovisionsintheStateFairTradingActs,ortheirrespectivesuccessorlegislation;

(b) defamation,slanderorlibel;

(c) anybreachofintellectualorindustrialpropertyortradesecretwhetherregisteredorunregistered,includingbutnotlimitedtotrademarks,designs,patentsandcopyright;

(d) breachofprivacyordutyofconfidentiality.

2. DefenceCosts

2.1 General

Weagreetopayanydefencecosts:

(a) thatweincur;or

(b) thatyouincurwithourwrittenconsent.

2.2 Advancementofdefencecosts

Wewilladvancedefencecostscoveredbythispolicypromptlyafterdetailedinvoicesforthosecostsarereceivedbyus.However,anydefencecoststhatareactuallypaidshallberepayabletousbyyouintheeventandtotheextentthatitisdeterminedunderthepolicythatyouwerenotentitledtoapaymentofdefencecosts.

Exclusion42‘FraudandDishonesty’willnotapplyuntiltheconductisestablishedbyfinaladjudicationofajudicialorarbitraltribunalorbyawrittenadmissionbyyou.

3. LimitofIndemnity

3.1 General

Weareonlyliabletoindemnifyyouforanamountoramountsnogreaterthanthelimitofindemnityforanyoneclaimasstatedintheschedule.

3.2 Defencecostsarepayableinadditiontothelimitofindemnity.However,themaximumamountpayablebyusunderthispolicyinrespectofdefencecostsistheequivalentofthelimitofindemnity.

3.3 Intheeventthattheamountpaidbyyouoronyourbehalftodisposeofaclaimexceedsthepolicy’slimitofindemnityforanyoneclaim,thenthispolicyshallonlycoverthesameproportionofdefencecostsasthispolicy’slimitofindemnityforanyoneclaimbearstothetotalamountpaidtodisposeoftheclaim(exclusiveofdefencecosts).

Ifwehavepaidoradvanceddefencecostsinexcessofthisproportion,youmustreimburseusforsuchdefencecosts.

3.4 Whereweconsiderthatthelimitofindemnityislikelytobeexhaustedbythepaymentofamountspayableunderthispolicywemay,inourabsolutediscretion,electtopayyoutheamountwhichexhauststhelimitofindemnity.Ifweelecttodothis,weshallhavenofurtherobligationtopayanyfurtherdefencecosts.

3.5 Whereaclaimismadeagainstmorethanoneinsuredpersonorentityunderthispolicy,thisshallnotoperatetoincreasethetotalamountpayablebyusunderthispolicy.

3.6 Unlessotherwisestatedinthepolicy:

(i) allamountspayablebyusunderthispolicyshallbeinclusiveofthelimitofindemnityanyoneclaimandnotinadditiontothelimitofindemnityanyoneclaim;

(ii) allamountspaidbyusunderthispolicyshallerodethelimitofindemnityintheaggregate.


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(iii) allsublimitsofindemnity,whereprovidedinthepolicy,areinclusiveofthelimitofindemnityanyoneclaimandnotinadditiontothelimitofindemnityanyoneclaim;

(iv) ifthescheduleprovidesforalimitofindemnitythatishigherintheaggregatethanforanyoneclaim,thenreferencesinthispolicytothelimitofindemnityshallonlybeinrespectofthelimitofindemnityforanyoneclaim.

4. Deductible

Unlessotherwisestatedinthepolicy:

(a) wewillbeliableonlyforamountspayableunderthepolicywhichexceedthedeductible;

(b) thedeductibleisnotpartofthelimitofindemnity;

(c) thedeductibleistobebornebytheinsuredandistoremainuninsured;

(d) thedeductibleappliestoallamountspayableunderthepolicy,exceptwherethedeductibleisexpressedinthescheduleas‘exclusiveofcosts’;

(e) ifthedeductibleisexpressedinthescheduleas‘exclusiveofcosts’then:

(i) youmustbearalldefencecostsuptothelimitofthedeductibleiftheclaimmadeagainstyouisforanamountthatislessthanthedeductible;

(ii) otherwisethedeductibleshallnotapplytodefencecostspayableunderthepolicy;

(f) anycostsandexpensesthatweincurtodeterminewhetherweareliabletoindemnifyyouunderthispolicyarenotsubjecttothedeductible;

(g) asingledeductibleshallapplytoeachclaimoreachcoverprovidedbyanExtension.

5. ExtentofIndemnity

5.1 Extensions

Ourliabilitytoindemnifyyouisextendedby:

(a) theautomaticextensionssetoutinPart2ofthispolicyunlessspecificallyexcludedintheschedule;and

(b)anyoptionalextensionssetoutinPart3ofthispolicythatarespecificallyincludedintheschedule;and

(c) anyextensionsincorporatedbyendorsementtothispolicy.

5.2 ExclusionsandConditions

However,unlessexpresslyprovidedotherwise,ourliabilitytoindemnifyyouunderthispolicyandanyendorsementissubjectto:

(a) thelimitofindemnityanddeductiblesetoutinclauses3and4ofthispolicy;and

(b) theexclusionsfromliabilitysetoutinPart4ofthispolicy;and

(c) theclaimsconditionssetoutinPart5ofthispolicy;and

(d) theotherconditionssetoutinPart6ofthispolicy;and

(e) anyexclusions,conditionsorotherprovisionsincorporatedbyendorsementtothispolicy.

6. MultipleClaims

(a) Allcausallyconnectedorinterrelatedacts,errorsoromissionsshalljointlyconstituteasingleact,errororomissionunderthispolicy.

(b)Whereasingleact,errororomissiongivesrisetomorethanoneclaim,allsuchclaimsshalljointlyconstituteoneclaimunderthispolicy.


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Thecoverprovidedunderthisextensionoperatesinadditiontothelimitofindemnityanyoneclaimanddoesnoterodetheaggregatelimitofindemnity.

10. CourtAttendance

Wewillpaytheinsured$500perpersonforeachdaythatanofficeroremployeeislegallycompelledtoanddoesattendcourttogiveevidenceinconnectionwithaclaim.ThedeductibledoesnotapplytothisExtension.

11. DomesticPartners

Thedefinitionofyouisextendedtoincludeanyspouseorcivilpartnerofanofficeroremployeeinrespectofaclaimarisingfromtheconductofsuchofficeroremployeeonlyandinwhichthespouseorpartnerhadnoinvolvementandisduesolelytothespouseorcivilpartner’sstatusassuch.

12. ExtendedNotificationPeriod

12.1 Ifthispolicyisneitherrenewednorreplacedwithprofessionalindemnityinsuranceatexpiryoftheperiodofcover,thenyouhaveuntiltheearlierof:

(a) suchtimethatyoueffectanotherprofessionalindemnityinsurancepolicy;or

(b) aperiodofsixty(60)dayscommencingonthedayimmediatelyfollowingexpiryoftheperiodofcover;

duringwhichtonotifyusinwritingofanyclaimfirstmadeagainstyou.

12.2 Theextensionofcoverunderclause12.1issubjecttoeachofthefollowingconditionsbeingsatisfied:

(a) wewilltreattheclaimasifithadbeenmadeagainstyouandnotifiedtousduringtheperiodofcover;

(b) coverageaffordedhereunderdoesnotreinstateorincreasethelimitofindemnityorextendtheperiodofcover;and

(c) coverageaffordedhereunderwillonlyapplytoacts,errorsoromissionscommittedorallegedtohavebeencommittedbyyou:

(i) beforetheendoftheperiodofcover;and

(ii) aftertheretroactivedatespecifiedintheschedule.

13. EstatesandLegalRepresentatives

Thedefinitionofyouisextendedtoincludeyourlegalrepresentatives,heirs,assignsorestatesintheeventofyourdeath,incapacity,insolvencyorbankruptcybutonlytotheextentthatwewouldotherwisehavebeenliabletoindemnifyyou.

Part2–AutomaticExtensions7. Consultants,Sub-ContractorsandAgents

Weagreetoindemnifyyouagainstcivilliabilityfordamagesandawardsofclaimants’costsinrespectofanyclaimfirstmadeagainstyouduringtheperiodofcover,arisingfromtheprovisionoforfailuretoprovideprofessionalservicesbyanyconsultant,sub-contractororagentforwhichyouarelegallyliable.

Wewillalsoindemnifyanysuchconsultant,subcontractororagent,providedthattherelevantact,errororomissiongivingrisetotheclaimoccurred:

(a) inthecourseoftheconductbytheconsultant,sub-contractororagentofyourprofessionalserviceswhilstactingforyouoronyourbehalf;and

(b) atthetimewhentheconsultant,sub-contractororagentwasunderyourdirectcontrolandsupervision.

8. ContinuousCover

Weagreetoindemnifyyouagainstcivilliabilityarisingfromanyclaimthatarisesoutoffactswhichfirstbecameknowntoyoupriortotheperiodofcoverwhere:

(a) wewereyourprofessionalindemnityinsureratthetimethefactsfirstbecameknowntoyou(the“previouspolicyperiod”)andhavecontinuedtobeyourprofessionalindemnityinsurerfromthenuntiltheactualdateofnotificationofclaim;and

(b) butforyourfailuretonotifyusofthefactsduringthe“previouspolicyperiod”,youwouldhavebeenentitledtoindemnityunderapreviouspolicyissuedbyus;and

(c) butfortheExclusion45‘PriorClaims/Circumstances’youwouldbeentitledtoindemnityunderthispolicy;and

(d) youhavenotcommittedorattemptedtocommitfraudulentnon-disclosureorfraudulentmisrepresentation.

Weareonlyliabletoindemnifyyoutotheextentthatweareobligedtoindemnifyyouunderthetermsandconditionsofthepolicyineffectduringthepreviouspolicyperiod,butinnocircumstancesshallthecovergrantedbythisExtensionbegreaterthanthetermsandconditionsofthepolicyineffectduringthisperiodofcover(includingthelimitofindemnityanddeductible).

9. InsurancePreparationCosts

Wewillpayupto$25,000intheaggregateduringtheperiodofcoverforreasonableprofessionalfeesandsuchotherexternalexpensesincurredbyyouinconnectionwiththepreparationofanyinsuranceinformationorsimilarmaterialatourrequestconcerningamatteryouhavenotifiedtousunderthispolicybutonlywherethatmatterisindemnifiedbyusunderthispolicy.


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14. FormerSubsidiary,FormerPrincipals,etc

14.1 Thedefinitionofsubsidiaryisextendedtoincludeanyformersubsidiary,butonlyinrespectoftheformersubsidiary’sconductwhileitwasstillyoursubsidiary.

14.2 Thedefinitionofyouisextendedtoincludeanyformerprincipal,officeroremployee,butonlyinrespectoftheirconductwhiletheywerestillyourprincipal,officeroremployee.


Weagreetoindemnifyyouagainstcivilliabilityarisingfromanyclaimthatisfirstmadeagainstyouduringtheperiodofcover,inrespectofanydishonest,fraudulent,maliciousorrecklessactoromissioncommittedorallegedtohavebeencommittedbyanyotherpersonorentitycoveredbythispolicyintheconductofyourprofessionalservices.

WewillnotprovideindemnityunderthisExtension:

(a) toanyinsuredpersonorentitycommittingorcondoningtheact,omissionorbreachthatwouldotherwisehaveresultedinExclusion42‘FraudandDishonesty’applying;

(b) foranylossofcurrency.

16. InquiryCosts

Weagreetoindemnifyyouforinquirycostsuptoanamountnotexceeding$500,000intheaggregatefortheperiodofcover,whichshallbepartofandnotinadditiontothelimitofindemnity.

17. JointVentures

Weagreetoindemnifyyouagainstcivilliabilityfordamagesandawardsofclaimants’costsarisingfromanyclaimfirstmadeagainstyouduringtheperiodofcover,inrespectoftheprovisionoforfailuretoprovideprofessionalservicesbyanyjointventureofwhichyouareapart,providedhoweverthat:

(a) thisExtensionshallindemnifyyouforyourindividualcivilliabilityinrespectofsuchjointventure,butnotforyourjointcivilliability;and

(b) weshallnotbeliabletopayacontributiontoanyinsurerofanyotherparticipantinsuchjointventure.

18. LossofDocuments18.1 General

Weagreetoindemnifyyouagainstcostsandexpensesthatyouincurinreplacingorrestoringlostdocumentsforwhichyouarelegallyresponsiblewhereyoufirstdiscoverthelossduringtheperiodofcover.However,weareonlyliabletoindemnifyyouagainstthosecostsandexpensesforwhichyouprovideuswithbillsoraccountsthatareapprovedundersubclause18.3.

18.2 Yourobligationtonotifyus

Youmustnotifyusofthelossofdocumentsassoonaspracticableafteryoudiscoverthelossandinanyeventwithin30days.

18.3 Approvalofbillsoraccounts

Onceyouprovideuswithbillsoraccounts,wemayeither:

(a) indemnifyyou;or

(b)nominateacompetentpersontoreviewthebillsoraccounts.

Ifwenominateacompetentperson,youmustnotifyuswhetherornotyouapproveofournominee.

18.4 Deductible

Notwithstandingclause4,youdonothavetobearthedeductibleinrespectofcostsandexpensescoveredbythisclause.

18.5 Meaningof‘lostdocuments’

Forpurposesofthisclause,‘lostdocuments’meansdocumentsthathavebeendestroyed,damagedormislaidandcannotbefoundafterdiligentsearch.

19. MitigationCosts19.1 Weagreetoindemnifyyouagainstmitigationcosts.

19.2 Weareonlyliabletoindemnifyyouunderclause19.1if:

(a) youwerefirstawareduringtheperiodofcoverofthefacts,circumstances,actsoromissionswhichhavegivenrisetothemitigationcosts(andwhichwouldhavegivenrisetoaclaimbutforthemitigationcosts);and

(b) wearenotifiedwithin15daysofyourdecisiontoincurmitigationcosts;and

(c) youestablishtoourreasonablesatisfactionthatthereisaprobabilitythat:

(i) aclaimwouldhavebeenmadeagainstyouandthatyouwouldhavebeenliableforthatclaimintheabsenceofyourcarryingoutthemitigationorrectificationthesubjectofthemitigationcosts;and

(ii) theamountofyourliabilityfortheclaimwouldhavebeengreaterthanthemitigationcosts.

19.3 Coverformitigationcostsshallnotexceed10%ofthelimitofindemnityanyoneclaim.

20. NewlyAcquiredorCreatedSubsidiariesWeagreetoindemnifyanysubsidiarythatyouacquireorcreateduringtheperiodofcoveragainstcivilliabilityfordamagesandawardsofclaimants’costsarisingfromanyclaimfirstmadeagainstthesubsidiaryuptotheearlierof:


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(c) failurebyaninsuredpersonorentitytocomplywithanytermsorconditionsofthispolicy,

doesnotprejudicetherightofanyotherinsuredpersonorentitytoindemnityunderthispolicy.However,thisclauseonlyappliesif:

(i) theotherinsuredpersonorentityisinnocentof,andhasnoknowledgeof,suchconduct;and

(ii) assoonaspracticableafterbecomingawareoftheconduct,theynotifyusofallfactsrelatingtosuchconduct.

24. PrincipalsIndemnity

Weagreetoindemnifyanyprincipalwhereyouareobligatedbyvirtueofawrittencontractfortheprovisionofprofessionalservicestothatprincipaltoprovideinsuranceasisaffordedbythispolicy,foranyclaimfirstmadeduringtheperiodofcoveragainsttheprincipalforitscivilliabilityarisingvicariouslyfromyourperformanceofprofessionalservicesfortheprincipal.

TheindemnityprovidedbythisExtensionissubjecttothefollowing:

(a) indemnityisprovidedonlytotheextentrequiredbysuchcontractandsubjecttothetermsandconditionsofthispolicy;and

(b) iftheclaimhadbeenfirstmadeagainstyou,youwouldhavebeenentitledtoindemnityunderthispolicy;and

(c) weshallmaintaintheconductandcontrolofanyclaimforwhichtheprincipalseeksindemnityunderthispolicy;and

(d) theindemnitydoesnotapplytotheprincipal’sownacts,errorsoromissions.

ForthepurposesofthisExtension,‘principal’meanstheownerorproprietorofaconstructionproject,providedthat:

(i) theprincipalhasnoinvolvementinthedesign,construction,managementorsupervisionoftheproject;and

(ii) youhaveenteredintoawrittenagreementtoprovideprofessionalservicestotheprincipal.

(i) sixty(60)daysaftersuchacquisitionorcreation;or

(ii) theexpiryoftheperiodofcover;

inrespectoftheprovisionoforfailuretoprovideprofessionalservices.

ThisExtensionwillonlyapplyinrespectofclaimsagainstthesubsidiaryarisingfromanact,errororomissionoccurringsubsequenttothedateofyouracquisitionorcreationofthesubsidiary.

ForthepurposesofthisExtension,thedefinitionofsubsidiaryisextendedtomeananyentitythatforthefirsttimeduringtheperiodofcover,theinsuredeitherdirectlyorindirectly:

(a) controlsthecompositionoftheboardofdirectors;

(b) controlsmorethanhalfofthevotingpower;or

(c) holdsmorethanhalfoftheissuedsharecapital.

ShouldtheinsuredrequirethepolicytobeextendedtoincludecoverforsubsidiarieswhichisnotautomaticallyprovidedbythisExtension,thentheinsuredshallprovideuswithanyadditionalinformationrequestedbyustopermitustoevaluatetheacceptabilityoftheadditionalexposure.Weshallhavetheright,butnottheobligation,tooffercoverfortheacquiredorcreatedsubsidiaryonsuchadditionalterms,conditions,exclusionsandadditionalpremiumaswemayrequire.

21. PublicRelationsExpenses

Wewillpaytoyouoronyourbehalfallpublicrelationsexpenses.

CoverunderthisExtensionshallnotexceed$50,000intheaggregatefortheperiodofcover.

22. Run-OffCoverUntilExpiryofPeriodofCover

Weagreethatintheeventthatyouceasetoexistoroperateorbecomeconsolidatedwith,mergedintooracquiredbyanyotherentityeitherbeforeorduringtheperiodofcover,thenthecoverageprovidedunderthispolicywithrespecttosuchpersonorentityshallcontinueuntiltheexpirydateoftheperiodofcover.

ThisExtensiononlyappliesinrespectofclaimsarisingfromanyact,errororomissionoccurringpriortotheeffectivedatethatyouceasedtoexistoroperateorwereconsolidatedwith,mergedintooracquiredbyanotherentity.

23. Imputation

Wheremorethanonepersonorentityisinsuredunderthispolicy:

(a) failurebyaninsuredpersonorentitytocomplywiththedutyofdisclosureundertheInsuranceContractsAct1984(C’wealth);or

(b) misrepresentationbyaninsuredpersonorentitytousbeforethepolicycommences;or


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Part3–OptionalExtensions25. BreachofPrivacy:ResponseCostsandFinesandPenalties

25.1 Wewillpaythereasonableandnecessaryresponsecostsincurredbyyou,withourpriorconsent,tonotifyanyclient,thirdpartyorregulatorinaccordancewithyourlegalorregulatorydutiesasaresultofanyactual,allegedorsuspectedbreachofprivacyfirstdiscoveredbyyouandnotifiedtousduringtheperiodofcoverinrelationtopersonaldatacollectedduringtheprovisionofprofessionalservices,regardlessofwhetheraclaimhasbeenmadeagainstyou.

25.2 Forthepurposesofsubclause25.1,suchresponsecostsshallnotinclude:

(a) publicrelationsexpenses;

(b)wages,overtime,salariesorfeestoofficersoremployees;

(c) costtocomplywithanyinjunctiverelief.

25.3 NotwithstandingExclusion41‘FinesandPenalties’,wewillalsopayfinesandpenaltiespayablebyyouarisingfromsuchactual,allegedorsuspectedbreachofprivacyunderthePrivacy Act 1988 (Cth)amendmentstheretoorsimilarlegislation.

25.4 Forthepurposesofsubclause25.3,wewillnotbeliabletoindemnifyyouforanysuchfineorpenalty:

(a) forwhichwearelegallyprohibitedfromindemnifyingyouunderanylaw;

(b)basedupon,attributabletoorinconsequenceofanyrecklessnessoranywilful,intentionalordeliberatefailuretocomplywithanylawfulnoticeordirection,enforcementactionorproceedingunderanylegislation.

25.5 CoverunderthisExtensionshallnotexceed$100,000intheaggregatefortheperiodofcover.

26. FidelityInsurance

Wewillindemnifytheinsuredfordirectfinanciallossdiscoveredandnotifiedtousduringtheperiodofcoverresultingfromanydishonest,fraudulentormaliciousactofanyemployeeorofficer,whethercommittedaloneorincollusionwithothers.

OurliabilitytoindemnifyyouunderthisExtensionissubjecttothefollowing:

(a) wearenotliabletoindemnifyyouunderthisExtensionifyoupersonallycommittedorcondonedanyact,omissionorbreachexcludedbyExclusion42‘FraudandDishonesty’;

(b) youmustbearanycostsorexpensesthatyouincurinestablishingorsubstantiatingtheexistenceoramountofthedirectfinancialloss;

(c) youmustbearanydirectfinanciallossthatyouincurasaconsequenceofanyactoromissionoccurringafterthedatethatyoudiscover,orhavereasonablesuspicionof,thedishonest,fraudulent,maliciousorrecklessactoromission;

(d) allinterrelatedindividualdishonest,fraudulentormaliciousactsshallbedeemedtoconstituteasinglelossunderthisExtension.

CoverunderthisExtensionshallnotexceedtheFidelityGuaranteelimitofindemnityspecifiedinthescheduleintheaggregateduringtheperiodofcover.TheFidelityGuaranteedeductiblespecifiedinthescheduleshallapplytoeachdirectfinanciallosscoveredunderthisExtension.

27. Subsidiaries–Pre-AcquisitionLiability

Weagreetoindemnifyasubsidiaryagainstallcivilliabilityfordamagesandawardsofclaimantscostsarisingfromanyclaimthatisfirstmadeagainstthesubsidiaryduringtheperiodofcoverandisnotifiedtousduringtheperiodofcoverinrespectofanyact,errororomissioncommittedorallegedtohavebeencommittedbythesubsidiarybeforethedatethatyouacquiredthesubsidiarybutaftertheretroactivedatespecifiedinthescheduleinrespectofitsconductofthesameprofessionasyourprofessionalservices.

28. JointVentures

AutomaticExtension17‘JointVentures’shallbeextendedtoprovideindemnityforyourjointandindividualcivilliabilityfordamagesandawardsofclaimants’costsinrespectofanyclaimmadeagainstyouduringtheperiodofcover,butonlyinrespectofjointventure(s)namedintheschedule.

29. PreviousBusiness

Weagreetoextendindemnityforanyclaimmadeduringtheperiodofcoveragainstsuchpersonwhoisorbecomesaprincipal,orofficerofyoursinrespectofcivilliabilityfordamagesandawardsofclaimants’costsincurredorallegedtohavebeenincurredonthepartofsuchpersonintheconductofthesameprofessionasyourprofessionalbusinessbeforethatpersonjoinedyou.

30. Run-OffafterMerger,TakeoverorSale

Intheeventoftheinsuredbeingsubjecttoamerger,takeoverorsaleduringtheperiodofcover,thenonapplicationbytheinsurednolaterthan30daysafterthemerger,takeoverorsaleiscompletedorbecomeseffective,wemayextendcovertoapplyinrespectofclaimsfirstmadeagainstyou,orinquiriesfirstcommencedandinvolvingyou,foraperiodofupto84calendarmonthsfromtheexpirydateoftheperiodofcoverbutonlyforclaimsthatarisefromacts,errors,omissionsorotherconductoccurringpriortothedateofsuchmerger,takeoverorsale.


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33. LimitationofLiability

NotwithstandingClause71,‘Subrogation’,werecognisethatyoumayenterintowrittencontractswithotherpartiesrelatingtotheperformanceofyourprofessionalservicesthatmayexcludeorlimittheliabilityofsuchpartiesandweagreethatsuchcontractswillnotprejudiceyourrighttoindemnityunderthispolicy.

ThecoverprovidedunderthisExtensiondoesnotapplytocontracts(whetherornottheyarewrittencontracts)enteredintoasaresultofadisputethatinvolvesyouinanyway.

34. NovatedContracts

WeagreethatExclusion40‘ContractualLiability/GuaranteeorWarranty’doesnotapplytoadutyorobligationassumedbyyouunderanovatedcontractwhere:

(a) youpurchaseoracquireanotherbusinessorcontract;

(b) youassumeresponsibilityforprofessionalservicespreviouslyundertakenbyanotherparty;or

(c) yourcontracttoprovideprofessionalservicesisnovatedtoanotherparty.

WearenotliabletoindemnifyyouunderthisExtensioninrespectof:

(i) liabilitiesinthenovatedcontractthatwerenototherwisecoveredbythepolicypriortosuchcontractbeingnovated;or

(ii) anyadditionalliabilitiesyouincurbyvirtueofthenovationofanovatedcontracttoyou.

ForthepurposesofthisExtension,anovatedcontractisanycontractnotedassuchbywayofendorsementtothispolicy.

35. CollateralWarranties

NotwithstandingExclusion40‘ContractualLiability/GuaranteeorWarranty’,weagreetoindemnifyyouagainstcivilliabilityfordamagesandawardsofclaimants’costsinrespectofanyclaimfirstmadeagainstyouduringtheperiodofcoverinrespectofanycollateralwarrantiesorsimilaragreementsprovidedtousbyyou,andwherewehavespecificallyagreedinwritingtoindemnifyyouinrespectofsuchcollateralwarrantyorsimilaragreement.

Weareonlyliabletoindemnifyyoutotheextentthatthebenefitsofsuchwarrantiesoragreementsarenotgreaterorlongerlastingthanthosegiventothepartywithwhomyouoriginallycontractedtoprovideprofessionalservices,andonlytotheextentthatsuchliabilitywouldhaveattachedtoyouintheabsenceofsuchcontractualduty,termoragreement.

ForthepurposeofthisExtension,wearenotliabletoindemnifyyouinrespectofanyclaimdirectlyorindirectlybasedupon,attributableto,orinconsequenceofany:

ThisExtensionisonlyavailableiftheinsuredacceptstheadditionalterms,conditions,exclusionsorpremiumaswemayrequire.

Ifcoverissoextended,AutomaticExtension20‘NewlyAcquiredorCreatedSubsidiaries’,andAutomaticExtension12‘ExtendedNotificationPeriod’aredeletedfromthispolicyfromtheeffectivedateofsuchmerger,takeoverorsale.

31. IncomingContinuousCover

Weagreetoindemnifyyouagainstcivilliabilityfordamagesandawardsofclaimants’costsinrespectofanyclaimfirstmadeagainstyouduringtheperiodofcover,thatarisesoutoffactswhichfirstbecameknowntoyoupriortotheperiodofcoverwhere:

(a) youheldprofessionalindemnityinsuranceatthetimethefactsfirstbecameknowntoyou(the“previouspolicyperiod”);and

(b) butforyourfailuretonotifyyourpreviousprofessionalindemnityinsurerofthefactsduringthe“previouspolicyperiod”,youwouldhavebeenentitledtoindemnityunderapreviouspolicy;and

(c) butfortheExclusion45‘PriorClaims/Circumstances’youwouldbeentitledtoindemnityunderthispolicy;and

(d) youhavenotcommittedorattemptedtocommitfraudulentnon-disclosureorfraudulentmisrepresentation.

Weareonlyliabletoindemnifyyoutotheextentthatweareobligedtoindemnifyyouunderthetermsandconditionsofthispolicy,butinnocircumstancesshallthecovergrantedbythisExtensionbegreaterthanthetermsandconditionsofthepolicyineffectduringthe“previouspolicyperiod”(includingthelimitofindemnityanddeductible).

Wemayreduceourliabilitytoyoubytheamountthatfairlyrepresentstheextenttowhichwehavebeenprejudicedasaresultofthelatenotification.ForthepurposesofthisExtension,prejudicewillincludelostopportunitiestoresolvetheclaimanddifficultiesorincreasedcostsincurredindefendingaclaimduetothedelayinnotification.

32. ContractualLiability

NotwithstandingExclusion40‘ContractualLiability/GuaranteeorWarranty’weagreetoindemnifyyouagainstcivilliabilityfordamagesandawardsofclaimants’costsinrespectofanyclaimfirstmadeagainstyouduringtheperiodofcoverunderanindemnityand/orholdharmlesstermofacontracttotheextentsuchcivilliabilityarisesoutofyourperformanceofprofessionalservices.


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(a) liabilityarisingfromtheprovisionbyyouofanexpresstermguaranteeingorwarrantingthefitnessforpurposeorsimilar;

(b) liabilityarisingunderanyexpressguaranteethattheworkswillsatisfyanyparticularperformancespecificationoranyexpressguaranteerelatingtotheperiodoftheproject;

(c) anyexpresscontractualpenaltyofafinancialnatureorliquidateddamages.

36. ProportionateLiabilityWaiver

WeagreethatExclusion40,‘ContractualLiability/GuaranteeorWarranty’doesnotapplytoliabilityassumedbyyouunderacontractbyreasonofhavingcontractedoutoftheoperationoftheProportionateLiabilityLegislation.

ForthepurposesofthisExtension,‘ProportionateLiabilityLegislation’meansCivilLiabilityAct2002(NSW)Pt4,WrongsAct1958(Vic)PtIVAA,CivilLiabilityAct2002(WA)Pt1F,CivilLiabilityAct2003(Qld)Pt2,CivilLaw(Wrongs)Act2002(ACT)Ch7A,ProportionateLiabilityAct2005(NT),CivilLiabilityAct2002(Tas)Part9A,LawReform(ContributoryNegligenceandApportionmentofLiability)Act2001(SA)Pt3,TradePracticesAct(Cth)s87C,DevelopmentAct1993(SA)s72,BuildingAct2004(ACT)s141andBuildingAct2000(Tas)s252,andanysimilarlegislationasamendedfromtimetotime.

37. WorkplaceStatutoryLiabilityInsurance

NotwithstandingtheExclusion41‘FinesandPenalties’andtheExclusion43‘ObligationtoEmployees’,wewillpayonyourbehalfalldefencecostsandanyfinesandpenaltiesincurredinconnectionwithanyclaimfirstmadeagainstyouduringtheperiodofcoverforanyact,error,omissionorotherconductthatgivesrisetoanotifiableincidentunderworkhealthandsafetylegislationinAustralia,providedthattheconductgivingrisetotheclaimwasnotintentional,wilful,recklessordeliberate.

Wewillnotbeliabletoindemnifyyouforanyfineorpenaltyforwhichwearelegallyprohibitedfromindemnifyingyouunderanylaw.

CoverunderthisExtensionshallnotexceed$250,000intheaggregatefortheperiodofcover.

Part4–ExclusionsWeshallhavenoliabilityunderthispolicy,includinginrespectofanyclaimorcostorexpenseorindemnityorpaymentorloss,arisingoutof,basedupon,attributabletoorinconsequenceof:

38. Asbestos

asbestosoranymaterialscontainingasbestos.

39. Associatedpersonsorentitiesanyclaimmadebyoronbehalfof:

(a) anyinsuredpersonorentity;or

(b) anyparent,successororassignofanyinsuredpersonorentity,or

(c) anyentityinwhichaninsuredpersonorentityorthemanagementoftheinsuredorsubsidiaryhasanexecutiveorcontrollinginterest,or

(d) anyofficeroremployeeunlesssuchclaimismadebyoronbehalfofanofficeroremployeeasacustomerorclientofyours.

40. ContractualLiability/GuaranteeorWarranty

(a) anyliabilityassumedunderanycontractoragreement;or

(b) anyexpressorimpliedguaranteeorwarranty;

excepttotheextentsuchliabilitywouldhaveattachedtoyouintheabsenceofsuchcontractoragreement.

41. FinesandPenalties

punitive,aggravated,multipleorexemplarydamages,orfinesorpenaltiesimposedbylaw.

Thisexclusionshallnotapplytocompensatorycivilpenalties,providedthat:

(a) ourtotalliabilityforthepaymentofcompensatorycivilpenaltiesduringanyoneperiodofcovershallnotexceed$250,000intheaggregate,whichamountshallformpartofandisnotinadditiontothelimitofindemnity;

(b) wewillnotbeliabletoindemnifyyouforanycompensatorycivilpenaltyforwhichwearelegallyprohibitedfromindemnifyingyouunderanylaw;

(c) wewillnotbeliabletoindemnifyyouforanycompensatorycivilpenaltybasedupon,attributabletoorinconsequenceofany:

(i) wilful,intentionalordeliberatefailuretocomplywithanylawfulnoticeordirection,enforcementactionorproceedingunderanylegislation;

(ii) recklessness;

(iii) requirementtopaytaxes,rates,duties,levies,charges,feesoranyotherrevenueorimpost.


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(b) theenforcementofjudgments,ordersorawardsobtainedwithinordeterminedpursuanttothelawoftheUnitedStatesofAmericaoranyofitsterritoriesorprotectorates.

49. WarandTerrorism

war(declaredorotherwise),terrorism,warlike,military,terroristorguerrillaactivity,sabotage,forceofarms,hostilities(declaredorundeclared),rebellion,revolution,civildisorder,insurrection,usurpedpower,confiscation,nationalisationordestructionofordamagetopropertybyorundertheorderof,anygovernmental,publicorlocalauthorityoranyotherpoliticalorterroristorganisation.

50. CostsEstimates

anyestimateofconstructioncostorcostestimatebeingexceededexceptwheresuchestimatesarecompiledbyaregisteredquantitysurveyororotherappropriatelyqualifiedprofessional.

51. Insolvency

theinsolvency,liquidation,administrationorreceivershipofyouoranypartyinvolvedinanyprojectorcontract.

52. InsuranceandFinancialAdvice

(a) anyfailuretoeffectormaintaininsurance,suretyorbond;or

(b) adviceoninsurance;or

(c) adviceoninvestment,marketing,financialortaxmatters;or

(d) theprovisionoffinance.

53. Manufacturing,ConstructionandPropertyDevelopment

(a) defectsorallegeddefectsinanyproductmanufactured,supplied,installed,assembled,erectedormaintainedbyyouexcepttotheextentthatsuchdefectsareattributabletoyourfaultydesignorspecification;or

(b) anyconstruction,assembly,installation,erectionormaintenanceotherthanwhereaclaimisattributabletoyourfaultydesignorspecification;or

(c) supervisionofanyconstruction,assembly,installation,erectionormaintenanceunlesssuchsupervisionisprovidedasaspecificallycontractedconstructionmanagerorprojectmanager(butnotincludingsupervisionaswouldbeundertakeninacapacitynormallyprovidedbyabuildingorengineeringcontractoractinginsuchcapacityalone);or

(d) youractivitiesasapropertydeveloper.


(a) thegainingoforintentionalattempttogainprofit,remunerationoradvantagetowhichyouwerenotlegallyentitled;or

(b) dishonest,fraudulent,malicious,wilfulorcriminalactoromissionbyyouoryourconsultants,sub-contractorsoragents;

intheeventthatanyoftheaboveisestablishedbyfinaladjudicationofajudicialorarbitraltribunalorbyyourwrittenadmission.

43. ObligationtoEmployees

bodilyinjury,mentalinjury,sickness,diseaseordeathofanyemployeeordamagetoordestructionofanypropertyofanemployee,includinglossofuse,arisingoutoforinthecourseoftheiremployment.

44. RadioactivityandNuclearRisk

ionisingradiationorthecontaminationbyradioactivityfromanynuclearfuelorfromanynuclearwastefromthecombustionofanynuclearfuel.

45. PriorClaims/Circumstances

(a) disclosuretousinthesubmission,ofanyclaim,inquiry,investigation,conduct,factormatterregardlessofhowitisexpressed;or

(b) factsorconductwhichhaveorhasbeennotifiedunderanyearlierpolicy;or

(c) factsorconductwhichyouknew,oroughtreasonablytohaveknown,priortothecommencementofthispolicymightgiverisetoaclaimorinquiry;or

(d) anyproceeding,inquiryorsimilarprocessonfootatthecommencementofthispolicy,oranyproceeding,inquiryorsimilarprocessderivedfromessentiallythesamefactsasinsuchproceeding,inquiryorprocess.

46. RetroactiveDate

anycivilliability,act,errororomissionorotherconductwhichfirstoccursbeforetheretroactivedatespecifiedintheschedule.

47. TradingDebts

anytradingdebtthatyouincuroranyguaranteethatyougiveforadebt.

48. USAJurisdiction

(a) anyclaimmadeinordeterminedpursuanttothelawoftheUnitedStatesofAmericaoranyofitsterritoriesorprotectorates,oranyinquiryconductedintheUnitedStatesofAmericaoranyofitsterritoriesorprotectorates;or


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54. PersonalInjuryandPropertyDamage

(a) bodilyinjury,sickness,disease,mentalinjury,mentalanguish,nervousshock,emotionaldistressordeathofanyperson;or

(b) physicallossof,damageto,ordestructionofanytangiblepropertyincludinganylossofuseoftangibleproperty;

unlessdirectlyarisingoutofyourprovisionoforfailuretoprovideprofessionalservices.

55. UseofProperty

theownership,use,occupationorleasingofanypropertybyyou,tooronyourbehalf.

Part5–ClaimsConditions56. Notification

Youmustnotifyusofanyclaimmadeagainstyouduringtheperiodofcoverassoonaspracticableaftertheclaimismade.Youmustgivenoticeofanyclaim,lossorothermatterinwriting,andsenditto:

TheClaimsManager,ProfessionalRisksDivisionAllianzAustraliaInsuranceLimited2MarketStreet,Sydney,NSW,2000.

57. Co-operation

Youmustatyourowncost:

(i) renderallreasonableassistancetousandco-operateinthedefenceofanyclaimorinquiryandtheassertionofindemnificationandcontributionrights;

(ii) givesuchinformationandassistancetousaswemayreasonablyrequiretoenableittoinvestigateanyclaimorinquiryordetermineourliabilityunderthispolicy.

58. Mitigation

Youmustuseallduediligenceanddoandconcurindoingallthingsreasonablypracticabletoavoidordiminishanycivilliability,defencecostsoranyothercostsorlossinrespectofwhichweareliabletoindemnifyyouunderthispolicy.

59. OurConsent

Youshallnotadmitorassumeanyliability,enterintoanysettlementagreementorconsenttoanyjudgmentinrelationtoanyclaimorinquirywithoutourpriorwrittenconsent.

60. DefenceandSettlement

Wedonotassumeanydutytodefend,andyoushalldefendandcontestanyclaimmadeagainstyouunlessweelectinwritingtotakeoverandconductthedefenceandsettlementofanyclaim.Ifwedonotsoelect,weshallbeentitled,butnotrequired,toparticipatefullyinsuchdefenceandthenegotiationofanysettlement.

IfthereisanydisputebetweenusandyouaboutwhethertoagreetoaproposedsettlementoraboutwhetheraclaimshouldcontinuetobedefendedthedisputeshallbedealtwithinaccordancewithCondition61‘Disputes’.

61. Disputes61.1 General

NeitherwenoryoumayrequiretheothertocontestanyclaimunlessSeniorCounseladvisesthattheclaimshouldbecontested.


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Part6–OtherConditions64. Assignment

Thispolicyandanyrightsunderorinrespectofitcannotbeassignedbyyouwithoutourpriorwrittenconsent.

65. Cancellation

(i) Youmaycancelthispolicybygivingnoticeinwritingtous.Ifsuchnoticeisgiven,thecancellationwilltakeeffectonthedaythenoticeisreceivedbyus.

(ii) WemaycancelthispolicyinanyofthecircumstancessetoutintheInsuranceContractsAct1984.Suchcancellationistotakeeffect30daysfromthetimenotificationisreceivedbyyou.

(iii) Uponcancellationbyyouorus,youwillreceivean80%proratarefundofpremiumfortheunexpiredportionoftheperiodofcoversubjecttonoclaimsorcircumstancesorinquirieshavingbeenmadeduringtheperiodofcover.

(iv) Whenthepremiumissubjecttoadjustment,cancellationwillnotaffectyourobligationtosupplytoussuchinformationasisnecessarytopermitthepremiumadjustmenttobecalculatedandtopaytheamountoftheadjustmentapplicableuptothedateofcancellation.

66. ChangeofControl

Weshallnotbeliabletomakeanypaymentortoprovideanyservicesinconnectionwithanyclaimorinquiryarisingoutof,baseduponorattributabletoanycivilliability,act,errororomissionorotherconductcommittedaftertheoccurrenceofamerger,takeover,orsale,excepttotheextentthatthereiscoverunderOptionalExtension30‘Run-offafterMerger,TakeoverorSale’,andsuchcoverhasbeenincludedunderthispolicy.

67. Currency

AllmonetaryamountsunderthispolicyareexpressedandpayableinAustraliancurrency.Ifjudgementisrendered,settlementisdenominatedorotheramountpayableunderthispolicyisstatedinacurrencyotherthanAustraliandollars,paymentunderthispolicyshallbemadeinAustraliandollarsatthecashrateofexchangeforthepurchaseofAustraliandollarsdeterminedbythefreemarketrateofexchangeaspublishedinthecurrencyconversionwebsitewww.oanda.com,orifnolongercurrent,acurrencyconversionwebsiteselectedbyusonthedatethefinaljudgementisreachedortheamountofthesettlementisagreedupon.

Informulatinghisorheradvice,SeniorCounselmusttakeintoconsiderationthedamagesandcostswhicharelikelytoberecoveredbytheplaintiff,thelikelydefencecostsandyourprospectsofsuccessfullydefendingtheclaim.

61.2 AppointmentofSeniorCounsel

Ifaclaimismadeagainstyou,wemaynominateaSeniorCounsel.IfwenominateaSeniorCounsel,youmustnotifyuswhetherornotyouapproveofournomineeassoonaspracticable.IfwecannotagreewithyouuponSeniorCounselwithinareasonabletime,SeniorCounselwillbesuchpersonasthePresidentoftheNewSouthWalesBarAssociationappoints.

61.3 CostsofSeniorCounsel’sOpinion

ThecostofSeniorCounsel’sopinionisincludedinthedefencecosts.

61.4 Meaningof‘SeniorCounsel’

Forpurposesofthisclause,‘SeniorCounsel’meansapractisingbarristerwhoisentitledtopracticeasaQueensCounselorSeniorCounselinAustraliaorNewZealand.

62. ElectiontoContestIfwerecommendsettlementofanyclaimandyoudonotagreetosuchsettlement,youmayelecttocontesttheclaim.However,ourliabilityinconnectionwiththeclaimisthenlimitedtotheamountwerecommendinsettlementplusdefencecostsincurredwithourconsentuptothedatewerecommendsettlementtoyou.

63. Allocation63.1 General

Intheeventthereareanumberofcauseswhichcontributetoaclaimmadeagainstyou,weagreetoindemnifyyouinrespectofyourliabilityforthatpartoftheclaim,includingdefencecosts,whichiscoveredunderthepolicyirrespectiveofwhetheroneormoreoftheothercausesisexcludedunderthepolicy.

63.2 BestEfforts

Bothpartieswillusetheirbesteffortstoagreeuponwhatisattributabletoindemnifiedandexcludedcauses.IntheeventthatanagreementcannotbereachedanExpertshalldetermine,asanExpertbutnotanarbitrator,thecausesofthelossandthepercentageattributabletoeachcause.UntilsuchExperthasmadehisorherdetermination,wemay,atourabsolutediscretion,paysuchamountinsuredunderthisConditionasweconsiderappropriate.

63.3 Meaningof‘Expert’

‘Expert’shallmeananappropriatelyqualifiedindustryexpertnominatedbyus.


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Anyrecoveryreceivedshallfirstbeappliedagainstthecostsoftherecoveryproceeding,thenanypaymentmadebyusandthentoanybalanceremainingthereafterbeingremittedtoyouuptotheamountofanyuninsuredloss.

YoushallnotdoanythingwhichshallprejudiceourrightsunderthisCondition.

WeagreenottoexerciseanysuchrightsofrecoveryagainstanyofficeroremployeeunlessitisestablishedthatExclusion42‘FraudandDishonesty’appliestotheclaimandtheofficeroremployee.

Inoursolediscretion,wemay,inwriting,waiveanyofitsrightssetforthinthisCondition.

72. AlterationtoRisk

72.1 Youmustnotifyusassoonaspracticableofanymaterialalterationtoriskduringtheperiodofcoverincluding:

(a) ifyousubmittovoluntarybankruptcy,receivershiporliquidation;or

(b) ifyoufailtopaydebts;or

(c) ifyoubreachanyotherobligationgivingrisetotheappointmentofareceiver,bankruptcy,orwindingupproceedings;or

(d) anymaterialchangeinthenatureoftheprofessionalservices.

72.2 Wheresuchnoticeisgivenand/orwherethereisanymaterialalterationtotherisk,wereservetherighttocancelthispolicyinaccordancewiththeInsuranceContractsAct1984(Cth).

72.3 Notwithstanding72.2,intheeventthatyoushouldbecomebankruptorinsolvent,weshallnotberelievedtherebyofthepaymentofanyclaimhereundersolelyduetosuchbankruptcyorinsolvency.

68. GST

Theamountthatweareliabletopayunderthispolicywillbereducedbytheamountofanyinputtaxcreditthatyouareormaybeentitledtoclaimforthesupplyofgoodsorservicescoveredbythatpayment.

Ifyouareentitledtoaninputtaxcreditforthepremium,youmustinformusoftheextentofthatentitlementatorbeforethetimeyoumakeaclaimunderthispolicy.WewillnotindemnifyyouforanyGSTliability,finesorpenaltiesthatarisefromorisattributabletoyourfailuretonotifyusofyourentitlement(orcorrectentitlement)toaninputtaxcreditonthepremium.

Ifyouareliabletopayadeductibleunderthispolicy,theamountpayablewillbecalculatedafterdeductionofanyinputtaxcreditthatyouareormaybeentitledtoclaimonpaymentofthedeductible.

69. Plurals,HeadingsandTitles,Interpretation

Wordsandexpressionsinthesingularshallincludetheplural,andviceversa.Also,whereatermofthispolicyisnotspecificallydefined,itisagreedthatthedefinitionnormallyattributedtoitbyanyapplicablelaworbusinesspracticeshallapply.

Thispolicy,itsscheduleandanyendorsementsareonecontractinwhich,unlessthecontextotherwiserequires:

(i) headingsaredescriptiveonly,notanaidtoconstruction;

(ii) singularincludestheplural,andviceversa;

(iii) themaleincludesthefemaleandneuter;

(iv) allreferencestospecificlegislationincludeamendmentstoandre-enactmentsofsuchlegislation;and

(v) referencestopositions,officesortitlesshallincludetheirequivalentsinanyjurisdictioninwhichacoveredclaimismadeorcoveredinquiryconducted.

70. ScopeandGoverningLaw

Anyissuerelatingtotheconstruction,validityoroperationofthispolicyshallbedeterminedinaccordancewiththelawsoftheCommonwealthofAustraliaandtheAustralianStateorTerritoryinwhichthepolicyisissued.Exceptasotherwiseprovidedherein,thepartiessubmittotheexclusivejurisdictionoftheAustraliancourts.

71. Subrogation

Unlessotherwisestatedinthepolicy,intheeventofanypaymentunderthispolicy,weshallbesubrogatedtoallofyourrightsofrecoveryinrespectofsuchpayment.Inaddition,youshallexecuteallandanydocumentationanddoanyotherthings,atyourowncost,asmaybenecessarytoenableustobringanactionorsuitforsuchrecovery.


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(vi) anyfinanciallosssustained,whilstinthecare,custodycontrolofanyfinancialinstitutionorarmouredsecuritycompany;

(vii) expensesincurredinreplacingdataorredesigningofsoftware;

(viii) losssustainedbyoneinsuredpersonorentitytotheadvantageofanotherinsuredpersonorentity.

(g) discoveredmeans

whenanofficerfirstbecomesawareoffactswhichwouldcauseareasonablepersontobelievethatadirectfinanciallosshasbeenorislikelytobeincurred,eventhoughtheexactamountordetailsofthedirectfinanciallossarenotknownatthetimeofdiscovery.

(h) employeemeans

anynaturalpersonwhois,hasbeenorduringtheperiodofcoverbecomesexpresslyengagedunderacontractofemploymentwithanyinsuredorsubsidiary.

(i) inquirymeans

(i) aninvestigation,examinationorinquirybyanyprofessionalbodyofwhichyouareamember,orexternalofficialpersonorbodyhavinglegalauthoritytoconductaninvestigation,includingaRoyalCommission,intoyourprofessionalservicesandforwhich:

(a) thenoticeorprocessrequiringyoutoattendortoproducedocumentsoranswerquestionsisfirstservedduringtheperiodofcover;or

(b) youareidentifiedinwritingduringtheperiodofcoverbysuchauthorisedpersonorbodyasatargetoftheinvestigation,examinationorinquiry;or,

(ii) araidon,oron-sitevisitto,youwhichfirsttakesplaceduringtheperiodofcoverbyaregulator,governmentbodyoranyotherexternalofficialpersonorbodyhavinglegalauthoritytoconductaninvestigationintotheprovisionofyourprofessionalservicesandwhichinvolvesyouintheproduction,review,copyingorconfiscationofdocumentsoraninterview;or

(iii) apublicannouncementrelatingto(ii)abovemadebytheauthorityperformingtheraidoron-sitevisit.

Itisnotnecessarythataclaimismadeagainstyou.

Part7–DefinitionsInthispolicy,unlessthecontextrequiresotherwise:

(a) claimmeans

(i) awrittenorverbaldemandbyathirdpartyforcompensationordamages;or

(ii) acivilproceedingbroughtbyathirdpartyforrecoveryofcompensationordamages,

inrespectofanactualorallegedbreachofprofessionalduty.

(b) currencymeans

anynegotiableinstruments,bearerbonds,coupons,stamps,money,bankorcurrencynotes.

(c) damagesmeans

anyamountthatyoushallbelegallyliabletopayasmonetarycompensationinrespectofjudgmentsorarbitralawardsrenderedagainstyou,orsettlementsenteredintowithourpriorwrittenconsent.

(d) deductiblemeans

theamountspecifiedassuchintheschedule.

(e) defencecostsmeans

allreasonablelegalfees,costsandexpenses,includingdisbursementsforwhichyouarelegallyliableandwhichyouincurredafteraclaimismade,withourpriorwrittenconsent(suchconsentnottobeunreasonablydelayedorwithheld),intheinvestigation,defence,adjustment,settlementorappealofanyclaim.

(f) directfinanciallossmeans

thephysicallossofcurrencybelongingtoyouorinyourcare,custodyorcontrol,sustainedbyyoudirectlyasaresultofadishonest,fraudulentormaliciousact.Itdoesnotmean:

(i) costs,feesorexpensesofprosecutingordefendinganydemand,claimorlegalproceedingresultingfromadirectfinanciallosscoveredbythispolicy;

(ii) costs,feesorotherexpensesinestablishingtheexistenceoramountofanydirectfinancialloss;

(iii) salary,wages,commissions,fees,bonuses,promotions,awards,profit-sharing,superannuationoranyotherremunerationofanyemployeeorofficer;

(iv) completeorpartialnon-paymentunderanycreditarrangement;

(v) interestorotherindirectorconsequentialloss;


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(c) inaccordancewithwhoseinstructionsorwishesthedirectorsoftheinsuredorsubsidiaryareaccustomedtoact(excludingadvicegivenbythepersonintheproperperformanceoffunctionsattachingtotheperson’sprofessionalcapacityortheirbusinessrelationshipwiththedirectorsortheinsuredorsubsidiary).

(o) periodofcovermeans

theperiodoftimespecifiedassuchintheschedule.

(p) professionalservicesmeans

professionalworkinvolvingoneormoreofthefollowingactivities:

(i) design,includingpre-designandadviceinrelationtodesign;

(ii) drafting,drawingsandtechnicaldocumentation;

(iii) technicaladvice;

(iv) technicalspecification;

(v) technicalinformationcalculation;

(vi) feasibilitystudies;

(vii) surveying;

(viii) provisionofinspectionservices;

(ix) programmingandtimeflowmanagement;

(x) traininginrespectofanyoftheaboveactivities;

(xi) projectmanagement;

(xii) constructionmanagement;

inrespectoftheprofessionalbusinessspecifiedintheschedule,wheresuchprofessionalworkiscarriedoutbyorunderthecontrolofaproperlyqualifiedarchitect,engineer,surveyororappropriateprofessionalperson,whetheryouremployeeorapersonactingunderyourcontrolorundercontractwithyou.

Professionalservicesdonotinclude:

(a) performanceorsupervisionofanyconstruction,assembly,installation,erectionormaintenanceaswouldbeundertakeninacapacitynormallyprovidedbyabuildingorconstructionormaintenancecontractoractinginsuchcapacityalone;

(b) environmentalprotection,workplacehealthandsafetyorindustrialrelationsmatterswhichwouldnormallybeoverseenbyabuildingorconstructionormaintenancecontractor.

However,inquirydoesnotinclude:

(iv) anyof(i),(ii)or(iii)abovethatrelatestoanindustryeventorpracticeandnotspecificallytoyourconductprovidingprofessionalservices;

(v) routineregulatorysupervision,inspectionorcompliancereviews;

(vi) anyinquiryconductedintheUnitedStatesofAmericaorCanadaoranyofitsterritoriesorpossessions.

(j) inquirycostsmeans

allreasonablelegalcostsandexpensesforwhichyouarelegallyliableandwhichareincurredbyyou,withourpriorconsent(suchconsentnottobeunreasonablydelayedorwithheld),forlegalrepresentationinconnectionwith,preparationfor,attendanceatorcompliancewithaninquiry.

(k) insuredmeans

theorganisationornaturalperson(s)specifiedassuchintheschedule.

(l) limitofindemnitymeans

theamountspecifiedassuchintheschedule.

(m) mitigationcostsmeans

allcostsandexpensesnecessarilyincurredbyyouthatare:

(i) directly,solelyandexclusivelyattributableto;and

(ii) reasonablyincurred;

tomitigateorrectifyanerrororomissionthatcouldhaveresultedinaclaimbeingmadeagainstyouandforwhichthepolicywouldrespondifaclaimhadbeenmade.

Itdoesnotmeanorinclude:

(i) yourlossofopportunity,revenueorprofits;

(ii) amountspaidbyyousolelyforthepurposeofreducingorremovingreputationalrisktothebusiness;

(iii) damages,compensationorotherpaymentsmade,orconsiderationgiven,tocustomers,clientsorpotentialclaimants;

(iv) anyamountonceaclaimismade.

(n) officermeans

(i) adirectororsecretaryoftheinsuredorsubsidiary;or

(ii) aperson:

(a) whomakes,orparticipatesinmaking,decisionsthataffectthewhole,orasubstantialpart,ofthebusinessoftheinsuredorsubsidiary;or

(b) whohasthecapacitytoaffectsignificantlytheinsured’sorsubsidiary’sfinancialstanding;or


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(v) we,us,ourmeans

AllianzAustraliaInsuranceLimited,ABN15000122850,AFSLicenceNo.234708.

(w) you,yourmeans

(i) theinsuredandanysubsidiarythereof;and

(ii) anyofficerbutonlywhenactingwithinthescopeoftheirdutiesintheperformanceofprofessionalservices(asdistinguishedfromcarryingoutdutiesasanofficeroftheinsuredinrelationtotheinsured’sownaffairs);or

(iii) anyemployeebutonlywhenactingwithinthescopeoftheirdutiesintheperformanceofprofessionalservices.

(q) publicrelationsexpensesmeans

allreasonablepaymentsincurredbyyouwithourpriorwrittenconsent(suchconsentnottobeunreasonablydelayedorwithheld)forpublicrelations,crisismanagementorlegalservicesreasonablyrequiredtopreventorminimiseadverseornegativepublicityasadirectresultofaclaimorinquirycoveredbythispolicy.

Itdoesnotmeanorinclude:

(i) responsecostsasdefinedunderOptionalExtension25;

(ii) youroverheads,staffremunerationormanagementtime;

(iii) compensationorotherpaymentsmadetocustomers,clientsorpotentialclaimants;

(iv) finesorpenalties;or

(v) thecostsandexpensesofcomplyingwithanyorderfor,grantoforagreementtoprovideinjunctiveorothernon-monetaryrelief.

(r) schedulemeans

theschedulerelatingtoandformingpartofthispolicy,includinganyendorsementsthereto.

(s) submissionmeans

eachandeveryproposalform,thestatements,andrepresentationstherein,itsattachmentsandallothermaterialinformationsubmittedtousinrespectofthispolicy.

(t) subsidiarymeans

anyentityatthecommencementoftheperiodofcoverthattheinsuredeitherdirectlyorindirectly:

(i) controlsthecompositionoftheboardofdirectors;

(ii) controlsmorethanhalfofthevotingpower;or

(iii) holdsmorethanhalfoftheissuedsharecapital.

(u) terrorismmeans

anact,includingbutnotlimitedtotheuseofforceorviolenceand/orthethreatthereof,ofanypersonorgroup(s)ofpersonswhetheractingaloneoronbehalfoforinconnectionwithanyorganisation(s)orgovernment(s),committedforpolitical,religious,ideologicalorsimilarpurposesincludingtheintentiontoinfluenceanygovernmentand/ortoputthepublicoranysectionofthepublicinfear.


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POL8

10BA

06/

15

Contact: [email protected]

Allianz Australia Insurance Limited (Allianz)ABN 15 000 122 850AFS Licence No. 2347082 Market Street Sydney NSW 2000 Telephone: 13 2664
