Architects Professional Indemnity Insurance Policy

Transcription

1 1. Architects Professional Indemnity Insurance Policy v12.15

2 Pen Underwriting Pty Ltd ABN AFSL Our name comes from the expression to pass the pen. It reflects what we do and what we bring to the insurance industry specialist expertise and quality underwriting. We strive to exceed the expectations of brokers by providing professional and flexible solutions for their clients risks across a wide range of major and boutique general insurance products. Contents Important Information 1 1. Insuring Clause 2 2. Automatic Extensions 2 3. Optional Extensions 4 Contact Details: Current as at December Exclusions 4 5. Claims Conditions 6 6. General Conditions 7 7. Definitions 8 Level 9, 60 Edward St Brisbane Qld 4000 GPO Box 541 Brisbane Qld 4001 Level 3, 333 Collins St Melbourne Vic 3000 PO Box 230 Collins St West Vic 8007 BRISBANE P: F: MELBOURNE P: F: Level 19, 347 Kent St Sydney NSW 2000 GPO Box 4431 Sydney NSW 2001 SYDNEY P: F: E: info.au@penunderwriting.com W:

3 IMPORTANT INFORMATION This Policy This Policy is an important document and should be kept in a safe place. Please read it carefully so that you understand the insurance provided. Your Duty of Disclosure Before you enter into an insurance contract, you have a duty to tell us anything that you know, or could reasonably be expected to know, may affect our decision to insure you and on what terms. You have this duty until we agree to insure you. You have the same duty before you renew, extend, vary or reinstate an insurance contract. You do not need to tell us anything that: reduces the risk we insure you for; or is common knowledge; or we know or should know as an insurer; or we waive your duty to tell us about. If you do not tell us something If you do not tell us anything you are required to, we may cancel your contract or reduce the amount we will pay you if you make a claim, or both. If your failure to tell us is fraudulent, we may refuse to pay a claim and treat the contract as if it never existed. Claims Made Policy This Policy is issued on a claims made and notified basis. This means that the Policy only covers the Insured for claims first made against the Insured during the Period of Insurance and notified to the insurer during the Period of Insurance. Section 40(3) of the Insurance Contracts Act 1984 may provide additional rights at law. That section provides that where the insured gave notice in writing to the insurer of facts that might give rise to a claim against the insured as soon as was reasonably practicable after the insured became aware of those facts but during the period of insurance, the insurer is not relieved of liability under the contract in respect of the claim, when made, by reason only that it was made after the expiration of the period of insurance. provide personal information about others, you represent to us that you have made them aware of that disclosure and of our Privacy Policy and that you have obtained their consent. If you do not consent to provide us with the personal information that we request, or withdraw your consent to the use and disclosure of your personal information at any stage, we may not be able to offer you the products or provide the services that you seek. For information about how to access and or correct the personal information we hold about you or if you have any concerns or complaints, ask us for a copy of our Privacy Policy or visit Complaints Handling If you are dissatisfied with a decision Pen Underwriting makes, our service, the service of others we appoint to discuss insurance matters with you, or a claim settlement, we have an internal dispute resolution process to assist you. For further information, ask for a copy of our Complaints and Disputes Resolution Policy or visit Further Information Your insurance broker has arranged this insurance on your behalf. If you have any questions or need further information concerning your insurance, you should contact your insurance broker to assist you with your enquiry. You should direct all of your correspondence to us through your insurance broker as he is your agent for this insurance. Retroactive Date This Policy does not provide cover in relation to the provision of the Professional Services or the conduct of the Professional Business prior to the Retroactive Date. Privacy Pen Underwriting handles your personal information with care and in accordance with the Privacy Act 1988 and the Australian Privacy Principles. We collect personal information about you to provide you with insurance and insurance related services. We may disclose your personal information to third parties for the purposes described in our Privacy Policy, including related entities, insurers, reinsurers, agents and service providers, some of whom may be located in the United Kingdom and India. By asking us to provide you with insurance and insurance related services, you consent to the collection, use and disclosure (including overseas disclosure) of your personal information for the purposes described in our Privacy Policy. Where you Page 1

4 In consideration of the payment of the Premium and in reliance on the contents of the Proposal, Underwriters will indemnify the Insured in accordance with the terms of this Policy. 1. INSURING CLAUSES Civil Liability Insuring Clause 1.1. Underwriters agree to indemnify the Insured against civil liability whatsoever and howsoever incurred in connection with the provision of Professional Services for any Claim first made against the Insured and notified to Underwriters during the Period of Insurance, including but not limited to, any Claim arising from: Breach of Professional Duty breach of professional duty, including breach of a duty of confidentiality; Contractual Liability contractual liability, provided that: (i) (ii) such liability was assumed by the Insured in the normal course of the provision of Professional Services; there is no indemnity for any liability assumed by an Insured by way of contract, warranty, guarantee or indemnity, unless such liability would have attached to the Insured in the absence of the contract, warranty, guarantee or indemnity; and (iii) the indemnity available to the Insured will not be reduced by the mere fact that contributory negligence is not available as a defence; Defamation defamation; Intellectual Property Infringement unintentional infringement of intellectual property rights; The Australian Consumer Law (e) unintentional breaches of The Australian Consumer Law, where the Insured s conduct is or is alleged to be: (i) misleading or deceptive, or likely to mislead or deceive; (ii) the making of false or misleading representations; (iii) unconscionable; or (iv) in breach of a warranty implied into a contract for the provision of services; Dishonesty (f) dishonest, fraudulent, criminal or malicious acts or omissions of any Insured, provided that there is no indemnity to any Insured who committed or condoned any such act or omission. Costs Insuring Clause 1.2. Underwriters agree to pay the Costs incurred with the prior written consent of Underwriters in the investigation, defence or settlement of any Claim indemnified under Insuring Clause 1.1, or any alleged civil liability which would, if such allegations were correct, be indemnified under Insuring Clause AUTOMATIC EXTENSIONS Underwriters agree to extend indemnity as stated in each of the Automatic Extensions, subject to all the terms of this Policy. The Automatic Extensions do not increase the Limit of Indemnity or the Aggregate Limit. Consultants, Contractors and Agents 2.1. Underwriters agree to indemnify the Insured under the Insuring Clauses for the acts, errors or omissions of the Named Insured s consultants, contractors and agents in the provision of Professional Services. Continuous Cover 2.2. Notwithstanding Exclusion 4.10(e), Underwriters agree to indemnify the Insured under the Insuring Clauses for any Claim first made against the Insured, or any notice of Criminal Prosecution or Inquiry first received by the Insured during the Period of Insurance arising from facts, matters or circumstances of which the Insured was aware prior to the Period of Insurance provided that: Underwriters via Pen Underwriting were the Insured s professional indemnity insurer at the time that the Insured first became aware of such facts, matters or circumstances and Underwriters via Pen Underwriting have continued without interruption to be the Insured s professional indemnity insurer; There is an absence of fraudulent non-disclosure; and The Limit of Indemnity under this Automatic Extension shall be the lesser available under the terms of the Policy in force at the time that the Insured first became aware of the facts, matters or circumstances and this Policy. The terms of this Policy shall otherwise apply. Court Attendance Costs 2.3. Underwriters agree to indemnify the Insured for the cost of attendance at Court or an Inquiry by any Insured as a witness, where such attendance is required by the Page 2

5 Insured s legal advisers, in respect of any Claim or Inquiry indemnified under this Policy provided that: such indemnity shall be limited to $500 per day or part day for any Principal and $250 per day or part day for any Employee; and Underwriters aggregate liability to indemnify the Insured under this Automatic Extension shall not exceed $100,000 in the aggregate for the Period of Insurance. Criminal Prosecution Defence Costs 2.4. Underwriters agree to indemnify the Insured for Criminal Prosecution Defence Costs provided that: notice of the Criminal Prosecution is first received by the Insured and notified to Underwriters during the Period of Insurance; the circumstances giving rise to the Criminal Prosecution could otherwise give rise to a Claim for which indemnity would be available under this Policy; in Underwriters opinion, the defence of the Criminal Prosecution would assist in the defence of any Claim arising from such circumstances; Underwriters written consent is obtained prior to legal costs being incurred; (e) (f) Underwriters shall be entitled to nominate lawyers to represent the Insured; and Underwriters aggregate liability to indemnify the Insured under this Automatic Extension shall not exceed $100,000 in the aggregate for the Period of Insurance. Inquiry Costs 2.5. Underwriters agree to indemnify the Insured for Inquiry Costs provided that: notice of the Inquiry is first received by the Insured and notified to Underwriters during the Period of Insurance; the Insured s attendance is directly related to the Insured s provision of Professional Services; Underwriters written consent is obtained prior to legal costs being incurred; (e) Underwriters shall be entitled to nominate lawyers to represent the Insured; and Underwriters aggregate liability to indemnify the Insured under this Automatic Extension shall not exceed the Limit of Indemnity for the Period of Insurance. Joint Venture Liability 2.6. Underwriters agree to indemnify the Insured under the Insuring Clauses for the Insured s proportion of liability resulting from the Insured s participation in any joint venture in the provision of Professional Services, provided that, where required by Underwriters, the nature of the joint venture and the Insured s income from the joint venture have been declared to Underwriters and assessed for the purposes of calculating Premium. Where the Insured has not declared the joint venture and income from the joint venture, where required to do so, Underwriters agree to indemnify the Insured under the Insuring Clauses for the Insured s civil liability arising out of the acts, errors or omissions of the Insured, subject to payment of the additional premium that would have applied had the joint venture and joint venture income been declared. Principals Previous Business 2.7. Underwriters agree to extend indemnity under the Insuring Clauses to the Principals where the Claim arises from a Principal s conduct of the Previous Business stated in the Schedule. For the purposes of this Automatic Extension only, the Retroactive Date shall be unlimited. Loss of Documents 2.8. Underwriters agree to indemnify the Insured against all costs and expenses reasonably incurred in replacing and or restoring lost or damaged Documents, provided that: (e) such loss or damage is sustained during the Period of Insurance and notified to Underwriters during the Period of Insurance and within twenty-eight days of the loss or damage; at the time the loss or damage was sustained, the Documents were in the Insured s physical custody or control in the course of the normal provision of Professional Services; there is no indemnity under this Automatic Extension for loss or damage caused by normal wear and tear or gradual deterioration; the costs and expenses shall be substantiated by invoices and accounts, which shall be subject to approval by Underwriters; notwithstanding Definition 7.8 Excess, the Excess under this Automatic Extension shall be $500 each and every loss; and Page 3

6 (f) Underwriters liability to indemnify the Insured under this Automatic Extension shall not exceed the Limit of Indemnity in the aggregate for the Period of Insurance. Run-Off Cover 2.9. Underwriters agree that, where the Named Insured is an entity and that entity ceases to exist or operate or is consolidated with, merged into or acquired by any other entity then the coverage provided to any Insured under this Policy with respect to that entity shall continue until the expiry of the Period of Insurance but only in respect to Professional Services provided prior to the date that the entity ceased to exist, operate, or was consolidated with, merged into or acquired by any other entity. 3. OPTIONAL EXTENSIONS Where an Optional Extension is stated as included in the Schedule, Underwriters agree to extend indemnity as stated in that Optional Extension, subject to all the terms of this Policy. The Optional Extensions do not increase the Limit of Indemnity or the Aggregate Limit. Fidelity 3.1. Underwriters agree to indemnify the Insured against loss of money, negotiable instruments, bearer bonds or coupons, stamps, bank or currency notes belonging to the Named Insured or for which the Named Insured is legally liable in the provision of Professional Services, where such loss is sustained in consequence of any dishonest or fraudulent act or omission of any Insured, provided that: (e) such loss is first discovered by the Insured during the Period of Insurance and is notified in writing to Underwriters within the Period of Insurance and within twenty-eight days of first discovery; there is no indemnity for any loss sustained after the date of the Insured s first discovery of any loss or any such act or omission, or the date upon which the Insured had reasonable cause for suspicion of any loss or any such act or omission; there is no indemnity to any Insured who committed or condoned any such act or omission; the Insured shall, at its own cost and expense, provide such documentation and information as is reasonably necessary, in Underwriter s opinion, to substantiate the existence of and amount of any such loss; the Excess shall apply to each and every individual dishonest or fraudulent act or omission; and (f) Underwriters liability to indemnify the Insured under this Optional Extension shall not exceed $100,000 in the aggregate for the Period of Insurance. Reinstatement of the Limit of Indemnity 3.2. Underwriters agree to reinstate the Limit of Indemnity during the Period of Insurance provided that Underwriters total liability under this Policy shall not exceed: 4. EXCLUSIONS in respect of any one Claim, the Limit of Indemnity; and in respect of all Claims, the Aggregate Limit. Underwriters shall not be liable under this Policy to provide indemnity in respect of any Claim, Costs, Criminal Prosecution Defence Costs, Inquiry Costs, costs, expenses or loss directly or indirectly based upon, attributable to, or in consequence of: Asbestos 4.1. asbestos or any materials containing asbestos in whatever form or quantity. Assumed Liability 4.2. contractual liability or any liability assumed under any warranty, guarantee or indemnity unless covered by Insuring Clause 1.1; any liability, duty or obligation assumed by any Insured which is not assumed in the normal conduct of the Professional Business. Costs Estimates 4.3. any estimate of construction cost or any cost estimate being exceeded, except where such estimate has been completed by a suitably qualified and/or experienced professional including, but not limited to, quantity surveyor, architect, engineer, or project manager. Directors and Officers Liability 4.4. any Insured s functions or duties as a director or officer of an incorporated entity. Dishonesty and Fraud 4.5. any actual or alleged: dishonest, fraudulent, criminal or malicious act or omission of any Insured or their consultants, contractors or agents, unless covered by Insuring Clause 1.1(f), Automatic Extension 2.4 Criminal Prosecution Defence Costs, Automatic Extension 2.5 Inquiry Costs or, if stated in the Schedule as included, Optional Extension 3.1 Fidelity; wilful breach of any statute, contract or duty by any Insured or their consultants, contractors or agents; or conduct of any Insured or their consultants, contractors or agents Page 4

7 with a reckless disregard for the consequences thereof. Employer s Liability 4.6. death, bodily injury, mental injury, illness or disease of any Employee, or damage to or destruction of any property of any Employee, arising out of, or in the course of, their employment; or any breach of any obligation owed by an Insured as an employer to any Employee or applicant for employment, or any dispute in connection with employment. Finance and Insurance 4.7. any actual or alleged failure by the Insured to arrange, provide, effect or maintain any finance, bond, surety or insurance; or where the Insured is retained for a fee to act as a Project Manager or Construction Manager, any actual or alleged advice provided by or on behalf of the Insured in respect to financial, accounting, taxation, investment, legal or insurance matters. Fines and Penalties 4.8. punitive, aggravated, multiple or exemplary damages, or any fines or penalties, provided that this Exclusion shall not apply to penalties of a purely compensatory nature. Insolvency 4.9. the insolvency, receivership, administration, bankruptcy or liquidation of any Insured; or the insolvency of any person or entity. Intellectual Property Infringement any infringement of intellectual property rights, unless covered by Insuring Clause 1.1. Known Claims and Circumstances any Claim made against any Insured prior to the Period of Insurance; any Criminal Prosecution or Inquiry notice of which is received by the Insured prior to the Period of Insurance; any fact, matter or circumstance disclosed by any Insured to Underwriters prior to the inception of this Policy; any fact, matter or circumstance disclosed by any Insured to any prior insurer; or (e) any fact, matter or circumstance of which any Insured was aware prior to the Period of Insurance and which the Insured knew, or ought reasonably to have known might give rise to a Claim or loss under this Policy. Nuclear nuclear incidents, nuclear material, or any radiation or contamination from any nuclear fuel, nuclear component or nuclear waste. Owners & Occupier s Liability the ownership, leasing, use, maintenance or operation by or on behalf of any Insured of any aircraft, watercraft, motor vehicle, or immobile property of any kind; or the ownership, management, control or occupation of any real property by or on behalf of any Insured. Professional Fees, Profit and Trading Debts any fee, commission or disbursement charged, received or incurred by any Insured or any Claim to refund, account for, or pay damages calculated by reference to any such fee, commission or disbursement; any profit derived or derivable by the Insured from the sale or supply of any services, goods, or rights by or on behalf of the Insured; or any trading debt, loan, or personal debt of any Insured. Products and Workmanship the sale, distribution, manufacture, installation, construction, alteration, repair, servicing or treating of any goods or products by or on behalf of any Insured, except where any actual or alleged defect arises directly from the Insured s design, drawing or specifications prepared by a suitably qualified and/or experienced professional including, but not limited to, architect or engineer; any actual or alleged faulty or inadequate workmanship; or any cost or expense incurred in withdrawing any good or product from sale or recalling any good or product, unless such cost or expense arises directly from the insured s design, drawing or specifications prepared by a suitably qualified and/or experienced professional including, but not limited to, architect or engineer. Real Estate Development the Insured undertaking real estate development. Page 5

8 Related Parties any actual or alleged liability to any other Insured, any Family Member of any Insured, any Subsidiary, any parent company, or any firm, company or partnership in which any Insured has a financial or executive interest unless the Claim originally emanates from an independent and unrelated third party. Retroactive Liability the provision of Professional Services prior to the Retroactive Date. The Australian Consumer Law any breaches of The Australian Consumer Law unless covered by Insuring Clause 1.1(e). Toxic Mould Toxic Mould. USA and Canada any Claim brought in a court of law within the territorial limits of the United States of America or the Dominion of Canada or their territories or protectorates; or the enforcement of any judgment, order or award obtained within, or determined pursuant to the laws of the United States of America or the Dominion of Canada or their territories or protectorates. War and Terrorism war, invasion, acts of foreign enemies, hostilities or warlike operations (whether war be declared or not), civil war, rebellion, revolution, insurrection, civil commotion assuming the proportions of or amounting to an uprising, military or usurped power; confiscation, nationalisation, requisition, or destruction of or damage to property by or under the order of any government or public or local authority; or Terrorism, or any action taken in controlling, preventing, suppressing, or in any way relating to Terrorism. Sanctions Underwriters shall not be deemed to provide cover and shall not be liable to pay any Claim or provide any benefit to the extent that the provision of such cover, payment of such Claim or provision of such benefit would expose Underwriters to any sanction, prohibition or restriction under United Nations resolutions or the trade or economic sanctions, laws or regulations of the European Union, Commonwealth of Australia, United Kingdom or United States of America. 5. CLAIMS CONDITIONS Claims Co-operation 5.1. Each Insured shall diligently do, and allow to be done, everything reasonably practicable to avoid or diminish any liability in respect of a potential Claim, a Claim, or any loss, costs or expense otherwise covered by this Policy. Each Insured shall, at their own expense, immediately give to Underwriters all assistance and information which Underwriters reasonably require to investigate and defend a Claim or loss, costs or expense under this Policy and to enable Underwriters to ascertain their liability under this Policy. Claims Reporting 5.2. In the event of a Claim arising under this Policy, the Insured shall give immediate notice of the Claim during the Period of Insurance in which the Claim is made. Notice of any Claim shall be given in writing to Pen Underwriting at the address stated in the Schedule. Investigation, Defence and Settlement 5.3. The Insured agrees not to settle any Claim, incur any Costs, costs or expense, make any admission, offer or payment or otherwise assume any contractual obligation with respect to any Claim or loss, Costs, costs or expense without Underwriters prior written consent, which consent shall not be unreasonably withheld. Underwriters shall not be liable for any settlement, Costs, costs or expense, admission, offer or payment, or assumed obligation to which Underwriters have not first consented in writing. Underwriters shall be entitled at any time to take over and conduct, in the name of the Insured, the defence or settlement of any Claim, and Underwriters shall have full discretion in the conduct of any such proceedings and in the settlement of any such Claim. Underwriters may allow or instruct the Insured to conduct the defence of the Claim, if Underwriters believe the Claim will not exceed the Excess. In this event, the Insured will be required to provide Underwriters with regular progress reports and Underwriters reserve the right to take over conduct of the defence or settlement of any such Claim at any time. Lawyers retained by Underwriters to conduct the investigation, defence or settlement of any Claim on behalf of Page 6

9 the Insured and Underwriters may also provide advice solely to Underwriters regarding their liability to indemnify the Insured. All communications between Pen Underwriting, Underwriters and the lawyers in regard to the Insured s entitlement to indemnity are privileged as between the lawyers, Pen Underwriting and Underwriters. The lawyers are free to disclose to Pen Underwriting and Underwriters any information obtained while acting on behalf of the Insured and the Insured agrees to waive any legal professional privilege as between the Insured, the lawyers, Pen Underwriting and Underwriters. If any actual or apparent conflict arises between the interests of Underwriters and the Insured s interests, the lawyers retained by Underwriters may cease acting on behalf of the Insured and may continue to act on behalf of Underwriters in relation to any dispute between Underwriters and the Insured with respect to the Insured s entitlement to indemnity under this Policy. Multiple Claims 5.4. All Claims which arise from a single act, error or omission, or which arise from causally connected or interrelated acts, errors or omissions shall be regarded as one Claim under this Policy, and the Limit of Indemnity and Excess shall apply accordingly. Right to Contest 5.5. In the event that Underwriters recommend a settlement in respect of any Claim and the Insured does not agree to that recommendation and decides to contest the Claim, then Underwriters liability in respect to such Claim shall be limited to the amount of the recommended settlement plus Costs, less the Excess, up to the time of the Insured s decision to contest the Claim. Senior Counsel 5.6. Underwriters shall not require the Insured to contest any Claim unless a Senior Counsel, to be appointed by mutual agreement of the Insured and Underwriters and as part of the Costs, advises that the Claim should be contested having regard to the economics of the matter and the prospects of successfully defending the Claim. Subrogation 5.7. In respect of any payment made under this Policy, Underwriters become entitled to any rights the Insured may have against any party. The Insured must assist Underwriters and provide such information and execute all documents, including giving evidence at any civil trial and providing signed statements, as is reasonably required to enable Underwriters to exercise such rights of subrogation. 6. GENERAL CONDITIONS Alteration to Risk 6.1. The Insured shall give to Underwriters written notice as soon as practicable and within thirty days of any material alteration to the risk during the Period of Insurance, including but not limited to: any material change in the nature of the Professional Services; the appointment of an administrator, receiver, or liquidator to any Insured, any act of insolvency of any Insured, or the bankruptcy of any Insured; or the cancellation, suspension or termination of any Insured s license, registration or membership of any professional association which is relevant to the provision of Professional Services. Cancellation 6.2. Underwriters may cancel this Policy at their discretion in accordance with the provisions of the Insurance Contracts Act The Insured may cancel this Policy at any time in writing to Pen Underwriting at the address shown on this Policy. In the event of cancellation, Underwriters will allow a refund of Premium calculated in accordance with Pen Underwriting s short term cancellation rates for the unexpired Period of Insurance, subject to Pen Underwriting and Underwriters retaining a minimum amount of thirty percent (30%) of the Premium plus Pen Underwriting s fee and commission, which shall be deemed fully earned at Policy inception. Where any fact or circumstance, Claim or loss has been notified under this Policy, the Premium shall be deemed fully earned. Excess 6.3. The Insured is liable for the amount of the Excess in respect of each Claim, Criminal Prosecution, Inquiry, and in respect of each and every loss under Automatic Extension 2.8 Loss of Documents. If Optional Extension 3.1 Fidelity is stated in the Schedule as included, the Insured is liable for the amount of the Excess in respect of each and every individual dishonest or fraudulent act or omission. Page 7

10 Where the Excess is stated in the Schedule as costs inclusive, the Excess shall also apply to Costs, but not collectively exceeding the amount of the Excess. The amount of the Excess is net of any GST payable in respect of Costs. Underwriters shall only be liable to indemnify the Insured for amounts payable above the Excess. Any legal costs and expenses incurred by Underwriters to determine whether Underwriters have a liability to indemnify the Insured under this Policy shall be borne by Underwriters and shall not be subject to the Excess. GST 6.4. The Premium includes an amount for GST. Underwriters liability to indemnify the Insured under this Policy is calculated less any Input Tax Credit to which the Insured is entitled for any relevant Acquisition, or to which the Insured would have been entitled had it made a relevant Acquisition. The Insured must inform Underwriters of the extent to which it is entitled to an Input Tax Credit for that GST amount each time that it notifies a Claim under this Policy, and any GST liability arising from the Insured s provision of incorrect advice is payable by the Insured. Governing Law 6.5. This Policy will be construed in accordance with the laws of Australia. Any disputes relating to interpretation will be submitted to the exclusive jurisdiction of the Courts of Australia. Limit of Indemnity 6.6. Underwriters total liability under this Policy in respect of any one Claim shall not exceed the Limit of Indemnity, and in respect of all Claims shall not exceed the Aggregate Limit. Amounts payable by Underwriters for Criminal Prosecution Defence Costs, Inquiry Costs, costs and expenses and loss under Automatic Extension 2.8 Loss of Documents and, if stated in the Schedule as included, Optional Extension 3.1 Fidelity, form part of the Limit of Indemnity and are subject to the aggregate liability limits for the Period of Insurance as set out in the relevant Extension. Where the Limit of Indemnity is stated in the Schedule to be costs exclusive, Underwriters agree to pay Costs in addition to the Limit of Indemnity, provided that if an amount is required to dispose of a Claim which is in excess of the Limit of Indemnity, Underwriters liability for Costs shall be limited to the proportion that the Limit of Indemnity bears to the amount required to dispose of the Claim. Non-imputation and Severability 6.7. Underwriters agree that, where this Policy insures more than one Named Insured, any conduct on the part of any Principal or Employee of a Named Insured, whereby such person failed to comply with their duty of disclosure under the Insurance Contracts Act 1984, or made a misrepresentation to Underwriters before this contract of insurance was entered into, shall not prejudice the right of any other Named Insured, or Principal or Employee of any other Named Insured, to indemnity under this Policy, provided that: such other Named Insured, Principal and Employee of such other Named Insured shall be entirely innocent of and have no prior knowledge of such conduct; such other Named Insured, Principal and Employee of such other Named Insured shall, as soon as is reasonably practicable upon becoming aware of any such conduct, advise Underwriters in writing of all known facts in relation to such conduct; and enquiry was made, before this contract of insurance was entered into, of each Insured for the purposes of complying with the duty of disclosure under the Insurance Contracts Act This provision is not intended in any way to limit the duty of disclosure owed by each Insured. Payment of Premium 6.8. Indemnity under this Policy is in consideration of the payment of the Premium. The Premium shall be paid within forty-five days of inception of this Policy. Policy Interpretation 6.9. Paragraph titles in this Policy are for descriptive purposes only and do not form part of this Policy for the purposes of its construction or interpretation 7. DEFINITIONS In this Policy, the singular includes the plural and vice versa Aggregate Limit means the amount stated as the Aggregate Limit in the Schedule. Where no Aggregate Limit is stated, the Aggregate Limit is the Limit of Indemnity. Page 8

11 7.2. Claim means: the receipt by the Insured of any written communication alleging any civil liability in connection with the provision of the Professional Services; any writ, summons, application, statement of claim or other form of legal or arbitral process served upon the Insured containing a demand for compensation or alleging any civil liability in connection with the provision of the Professional Services Costs means the reasonable legal costs and other expenses incurred by or on behalf of the Insured or by Underwriters in the investigation, defence or settlement of a Claim Criminal Prosecution means criminal proceedings brought against the Insured in respect to an alleged breach of any construction industry statutory regulation in the provision of Professional Services Criminal Prosecution Defence Costs means all legal costs reasonably incurred in connection with the Insured s representation at a Criminal Prosecution Documents means deeds, wills, agreements, maps, plans, books, letters, policies, certificates, forms and documents of any nature whatsoever, whether written, printed or reproduced by any method including computer records and electronic data material but shall not include bearer bonds or coupons, stamps, bank or currency notes or any other negotiable instrument Employee means: any person employed by the Named Insured under a contract of service, traineeship or apprenticeship; and` any sub-contractor engaged by the Named Insured but only while acting under the direct supervision and control of the Named Insured Excess means the amount payable by the Insured stated as the Excess in the Schedule Family Member means: any spouse or domestic partner; any sibling or child; any parent, or parent of any spouse or domestic partner, of any Insured GST, Input Tax Credit and Acquisition have the meaning given to those words in A New Tax System (Goods and Services Tax) Act Insured means: (e) (f) the Named Insured; Principals and Employees of the Named Insured during the Period of Insurance; former Principals and Employees of the Named Insured but only in respect to work performed while a Principal or Employee of the Named Insured; estates and legal representatives of any Insured; Subsidiaries newly incorporated or acquired by the Named Insured and practising in the same professional discipline as the Professional Services, for a maximum period of thirty days from the date of incorporation or acquisition. The retroactive date applicable for such Subsidiaries is the date of incorporation or acquisition; or entities, merged with or acquired by the Insured and practising in the same professional discipline as the Professional Services, for a maximum period of thirty days from the date of merger or acquisition. The retroactive date applicable for such entities is the date of merger or acquisition Inquiry means an inquiry, investigation, examination, or other proceeding relating to the Professional Services where the findings from such inquiry, investigation, examination or other proceeding could lead to a Claim being made against an Insured which may be indemnified under this Policy Inquiry Costs means all legal costs reasonably incurred in connection with the Insured s attendance at an Inquiry Limit of Indemnity means the amount stated in the Schedule as the Limit of Indemnity Named Insured means the person, partnership or entity stated as the Named Insured in the Schedule Pen Underwriting means Pen Underwriting Pty Ltd ABN AFSL Period of Insurance means the Period of Insurance stated in the Schedule or, in the event of Policy cancellation, the period from inception to the effective date of cancellation of this Policy Policy means this policy wording, the Schedule, any endorsements attaching to this policy wording, and the Proposal Premium means the amount stated as Premium in the Schedule and in any endorsement to this Policy. Page 9

12 7.20. Principal means where the Named Insured is an individual, that individual, where the Named Insured is a firm, a partner of that firm, or where the Named Insured is a company, a director of that company Professional Services means the professional services provided by the Named Insured as stated in the Schedule, and which the Insured is licensed and or registered to provide, where licensing and or registration is required by law Proposal means the written proposal made by the Insured to Underwriters in application for this insurance, which has been relied upon by Underwriters to determine whether to provide this Policy and on what terms Retroactive Date means the Retroactive Date stated in the Schedule Schedule means the Certificate of Insurance and Schedule to this Policy issued by Pen Underwriting or Underwriters Senior Counsel means a practising barrister who is entitled to use the postnominals QC or SC Subsidiary means any entity over which the Named Insured is in a position to exercise effective direction or control through ownership or control of more than fifty percent of the issued voting shares of that entity, or any entity deemed at law to be a subsidiary of the Named Insured Terrorism means an act, including but not limited to the use of force or violence and/or the threat thereof, of any person or group of persons, whether acting alone or on behalf of or in connection with any organisation or government, which from its nature or context is committed for or in connection with political, religious, ideological or similar purposes including the intention to influence any government and/or to put the public, or any section of the public in fear Toxic Mould means fungus, mould, mildew, yeast, spores, or any toxins, substance, vapour, gas, or other emission produced by or emanating from fungus, mould, mildew, yeast or spores Underwriters means certain Underwriters at Lloyd s and insurers participating in this Policy. Page 10