POLICY WORDING CIVIL LIABILITY PROFESSIONAL INDEMNITY INSURANCE

Transcription

1 POLICY WORDING CIVIL LIABILITY PROFESSIONAL INDEMNITY INSURANCE CBRI PI 0616 Effective Date 14 June 2016 CLBR APO ISR 1115 Effective Date 16 November 2015

2 CALIBRE CIVIL LIABILITY PROFESSIONAL INDEMNITY INSURANCE Notice of Change This notice supplements and amends the following Calibre Commercial Insurance Pty Ltd* Policy Wording dated 14 June 2016: Policy Code Policy Wording Effective Date CBRI PI 0616 Calibre Civil Liability Professional Indemnity Insurance 14 June 2016 This notice forms part of and is to be read together with the Policy Wording. All other Policy terms and conditions remain unaltered. This notice is dated 31 August 2017, and takes effect on 31 August THE FOLLOWING AMENDMENTS HAVE BEEN MADE TO THE POLICY WORDING: Important Information The Insurer All references to Great Lakes Reinsurance (UK) SE (ARBN , ABN , AFSL ) within the Important Information provisions are deleted and replaced with the insurer s new entity details as follows: Great Lakes Insurance SE (ARBN , ABN , AFSL ) trading as Great Lakes Australia ( GLA ). The third paragraph is replaced as follows: GLA is a branch office of Great Lakes Insurance SE, a limited liability company incorporated in Germany and a wholly owned subsidiary of Münchener Rückversicherungs-Gesellschaft AG ( Munich Re ), part of Munich Re (Group). Munich Re (Group) is one of the largest insurance groups in the world. The Agent The provision titled The Agent is deleted and replaced with: The Agent Calibre Commercial Insurance Pty Ltd (ABN , AFSL ) ( Calibre Insurance ) arranges policies for and on behalf of GLA. Calibre Insurance acts under a binding authority given to it by GLA to administer and issue policies, alterations and renewals. In all aspects of arranging the Policy, Calibre Insurance acts as an agent for GLA and not for You. Calibre Insurance s contact details are: Address: Level 8, 1 Pacific Highway, North Sydney, NSW 2060 Phone: connect@calibreinsurance.com.au Definitions Insurer The definition of Insurer in The Policy is deleted and replaced with: Insurer means Great Lakes Insurance SE (ARBN , ABN , AFSL ), trading as Great Lakes Australia. All other references to the insurer within The Policy is a reference to the entity stated above. Front and Back Covers Address of Calibre Commercial Insurance Pty Ltd All references to Calibre Insurance s address at Level 9, Exhibition Street Melbourne, VIC 3000 is deleted and replaced with: Level 8, 1 Pacific Highway, North Sydney, NSW 2060 All other contact details remain unchanged. *Calibre Commercial Insurance Pty Ltd (ABN , AFSL ) ( Calibre Insurance ) acts under a binder as agent for Great Lakes Insurance SE (ARBN , ABN , AFSL ) trading as Great Lakes Australia ( GLA ). Great Lakes Insurance SE is a limited liability company incorporated in Germany CBRI PI NOC 0817

3 TABLE OF CONTENTS CIVIL LIABILITY PROFESSIONAL INDEMNITY INSURANCE POLICY IMPORTANT INFORMATION 1 Our Agreement 1 The Insurer 1 The Agent 1 Claims Made and Notified Basis of Coverage 1 Duty of Disclosure 2 GST 2 Privacy 2 Dispute Resolution Process 3 Financial Claims Scheme 3 General Insurance Code of Practice 3 Non-Renewable Policy 3 Retroactive Date 3 Subrogation Rights 3 Cost of this Insurance 3 Defined Terms 4 DEFINITIONS 5 1. PREAMBLE 7 2. INSURING CLAUSES 7 3. AUTOMATIC EXTENSIONS 7 4. OPTIONAL COVER EXCLUSIONS CLAIMS CONDITIONS GENERAL CONDITIONS 15

4 IMPORTANT INFORMATION This Policy and the Schedule are important. They should be read together and kept in a safe place. If the Insured has any questions regarding the Policy, please contact the insurance broker or Calibre Commercial Insurance Pty Ltd ( Calibre Insurance ). OUR AGREEMENT Where the Insurer has agreed to insure the Insured, the Insurer will issue a Schedule confirming cover. The information contained in the Schedule sets out information specific to the Insured such as the cover the Insurer has agreed to provide and the Policy Limits of Indemnity. The Insurer s agreement with the Insured ( the Policy ) will comprise this document, each Schedule and any endorsements We issue. In issuing this Policy, the Insurer has relied upon the Application completed by the Insured, together with all supplementary information and material provided by or on behalf of the Insured. THE INSURER This insurance is underwritten by Great Lakes Reinsurance (UK) SE (ARBN , ABN , AFSL ) trading as Great Lakes Australia ( GLA ). Great Lakes Reinsurance (UK) SE is an insurer authorised by the Australian Prudential Regulation Authority ( APRA ) to carry on insurance business in Australia. GLA is a branch office of Great Lakes Reinsurance (UK) SE, a limited liability company incorporated in England and Wales and a wholly owned subsidiary of Münchener Rückversicherungs-Gesellschaft AG ( Munich Re ), part of Munich Re (Group). Munich Re (Group) is one of the largest insurance groups in the world. Great Lakes Reinsurance (UK) SE has strong financial security characteristics. However, please note that ratings can vary from time to time. Great Lakes Reinsurance (UK) SE s current rating can be checked at the following website, Standard & Poors: Calibre Commercial Insurance Pty Ltd ( Calibre Insurance ) should be contacted in the first instance in relation to this insurance. GLA s contact details are: THE AGENT Calibre Commercial Insurance Pty Ltd (ABN , AFSL ) ( Calibre Insurance ) is a subsidiary of Munich Re, part of Munich Re (Group). Munich Re (Group) is one of the largest insurance groups in the world. Calibre Insurance arranges policies for and on behalf of GLA ( the Insurer ). Calibre Insurance acts under a binding authority given to it by the Insurer to administer and issue policies, alterations and renewals. In all aspects of arranging this Policy, Calibre Insurance acts as an agent for the Insurer and not for the Insured. Calibre Insurance s contact details are: Address: Level 8, 1 Pacific Highway, North Sydney, NSW 2060 Phone: connect@calibreinsurance.com.au CLAIMS MADE AND NOTIFIED BASIS OF COVERAGE The Civil Liability Professional Indemnity Insurance Policy is issued on a claims made and notified basis. This means that the Insuring Clause responds to: a) claims first made against the Insured during the Period of Insurance and notified to the Insurer during the Period of Insurance, provided that the Insured was not aware at any time prior to the Policy inception of circumstances which would have put a reasonable person in the Insured s position on notice that a claim may be made against the Insured; and b) written notification of facts pursuant to section 40(3) of the Insurance Contracts Act 1984 (Cth). The facts that the Insured may decide to notify, are those which might give rise to a claim against the Insured. Such notification must be given as soon as reasonably practicable after the Insured becomes aware of the facts and prior to the Period of Insurance expiring. If the Insured gives written notification of facts the Policy will respond even though a claim arising from those facts is made against the Insured after the Policy has expired. When the Period of Insurance expires, no new notification of facts can be made on the expired Policy even though the event giving rise to the claim against the Insured may have occurred during the Period of Insurance. Address: 143 Macquarie Street, Sydney, NSW 2000 Mail: PO Box H35 Australia Square, Sydney, NSW 1215 Phone:

5 DUTY OF DISCLOSURE Before the Insured enters into an insurance contract, the Insured has a duty to tell the Insurer anything that the Insured knows, or could reasonably be expected to know, may affect the Insurer s decision to insure the Insured and on what terms. The Insured has this duty until the Insurer agrees to insure the Insured. The Insured has the same duty before the Insured renews, extends, varies or reinstates an insurance contract. The Insured does not need to tell the Insurer anything that: reduces the risk the Insurer insures the Insured for; or is common knowledge; or the Insurer knows or should know as an insurer; or the Insurer waives the Insured s duty to tell the Insurer about. If the Insured does not tell the Insurer something If the Insured does not tell the Insurer anything the Insured is required to, the Insurer may cancel the Insured s contract or reduce the amount the Insurer shall pay the Insured if the Insured makes a Claim, or both. If the Insured s failure to tell the Insurer is fraudulent, the Insurer may refuse to pay a Claim and treat the contract as if it never existed. After the Policy is entered into, ongoing disclosure obligations apply. See Policy for details. GST The limits of cover that the Insured chooses should exclude Goods and Services Tax ( GST ). If the Insured is not registered for GST in the event of a Claim the Insurer will reimburse the Insured the GST component in addition to the amount that the Insurer pay. The amount that the Insurer is liable to pay under this Policy will be reduced by the amount of any input tax credit that the Insured is or may be entitled to claim for the supply of goods or services covered by that payment. If the Insured is entitled to an input tax credit for the premium, The Insured must inform the Insurer of the extent of that entitlement at or before the time the Insured makes a Claim under this Policy. The Insurer will not indemnify the Insured for any GST liability, fines or penalties that arise from or are attributable to the Insured s failure to notify the Insurer of the Insured s entitlement (or correct entitlement) to an input tax credit on the premium. If the Insured is liable to pay an Excess under this Policy, the amount payable will be calculated after deduction of any input tax credit that the Insured is or may be entitled to claim on payment of the Excess. PRIVACY Both the Insurer and Calibre Insurance are committed to the safe and careful use of the Insured s personal information in the manner required by the Privacy Act 1988 (Cth), the Australian Privacy Principles and the terms of the Policy. Calibre Insurance and/or the Insurer collect the Insured s personal information in order to assess the Insured s Application for insurance and, if the Insured s Application is accepted, to administer and manage the Policy and respond to any claim that the Insured makes. To do this, the Insured s personal information may need to be disclosed to reinsurers, service providers and related entities who carry out activities on the Insurer s and Calibre Insurance s behalf, such as assessors, facilitators or credit references bureaus (for a full list please see Calibre Insurance s and the Insurer s privacy policies), some of whom may be located in overseas countries. The Insurers contractual arrangements generally include an obligation for these reinsurers, service providers and related entities to comply with Australian privacy laws. By providing the Insurer and Calibre Insurance with the Insured s personal information, the Insured consents to the disclosure of their personal information (including sensitive information) to reinsurers, service providers and related entities in overseas countries to enable the Insurer and Calibre Insurance to assess the Insured s Application, to administer and manage the Insured s insurance Policy and to respond to any claim that the Insured makes. The Insured s personal information (including sensitive information) may be disclosed to entities in the following countries: Canada, Germany, India, Singapore, South Africa and the United Kingdom. If the Insured consents to the disclosure of their personal information to overseas recipients, and the overseas recipient handles the Insured s personal information in a way other than in accordance with the Australian privacy laws, the Insurer and Calibre Insurance may not be responsible for the handling of the Insured s personal information by the overseas recipient. If the Insured chooses not to provide their personal information and/or chooses not to consent and/or withdraw their consent to the disclosure of their personal information to overseas entities at any stage, the Insurer and/or Calibre Insurance may not be able to assess the Insured s Application or administer and manage the Policy and respond to any claim that the Insured makes. The Insurer s and Calibre Insurance s privacy policies contain information on how the Insured may access personal information that the Insurer and/or Calibre Insurance hold, or seek correction of their personal information and information on how to make a complaint about the handling of their personal information and how complaints are handled. If the Insured requires more information, they can access the Insurer s Privacy Policy and Privacy Statement at and Calibre Insurance s Privacy Policy at and Privacy Statement at 2

6 DISPUTE RESOLUTION PROCESS If the Insured is not satisfied with the Insurer s service please tell the Insurer so the Insurer can help. The Insurer will address complaints in accordance with Calibre Insurance s Complaints Handling Process (available at: Complaints-process.pdf) and the Insurance Council of Australia s General Insurance Code of Practice. If the Insured has a complaint: Step 1: Contact Calibre Insurance by: Phone: Fax: feedback@calibreinsurance.com.au Mail: Level 8, 1 Pacific Highway, North Sydney, NSW 2060 If Calibre Insurance requires additional information they shall contact the Insured to discuss. If the Insured s complaint is not immediately resolved Calibre Insurance shall respond within 15 business days of receipt of the Insurer s complaint or agree a reasonable alternative timetable with the Insured. Step 2: Internal Dispute Resolution If the Insured is not satisfied with Calibre Insurance s response the Insured may refer it in writing to Calibre Insurance s Internal Dispute Resolution Panel, which is independent of the original complaint review. The Panel shall respond within 15 business days. Should this be unachievable, the Panel may request a later response date. If the Insured is not satisfied with the resolution, the Insured s complaint shall be referred to the Dispute Resolution officer or their delegate from the Insurer. The Insured may contact the Insurer by: Phone: disputes@gla.com.au Mail: Great Lakes Australia, 143 Macquarie Street, Sydney, NSW 2000 Step 3: External Dispute Resolution scheme If the Insurer is unable to resolve the Insured s complaint within 45 days of the date the Insurer first received the Insured s complaint or if the Insured remain unsatisfied, the Insured may seek a free review by the Financial Ombudsman Service Limited ( FOS Australia ). The FOS Australia is an independent national body and the Insurer agrees to accept its decision. The Insured may contact the FOS Australia by: Phone: (or 1800 FOS AUS) info@fos.org.au Website: Mail: Financial Ombudsman Service Ltd, GPO Box 3, Melbourne, VIC 3001 FINANCIAL CLAIMS SCHEME In the event of the insolvency of the Insurer, the Insured may be entitled to payment under the Financial Claims Scheme. Access to the scheme is subject to eligibility criteria. Information about the scheme can be obtained from the APRA website at and the APRA hotline on GENERAL INSURANCE CODE OF PRACTICE The Insurer is a signatory to the General Insurance Code of Practice ( the Code ). The Code aims to raise standards of service between insurers and their customers. Calibre Insurance s service standards are in accordance with the Code. For any information about the Code, including a copy of the Code, contact the Insurer or the FOS Australia on (or 1800 FOS AUS) or look at NON-RENEWABLE POLICY This Policy will terminate at the end of the Period of Insurance specified in the Schedule. If the Insured wants to obtain similar insurance for a subsequent Period of Insurance, the Insured will need to complete a new Application before the end of the Period of Insurance specified in the Schedule. RETROACTIVE DATE This Policy does not apply to, and the Insurer will not be liable in respect of any Claim and/or Loss arising from, attributable to or in any way connected with any act, error or omission occurring prior to the Retroactive Date where one is specified in the Schedule. SUBROGATION RIGHTS This Policy does not apply to, and the Insurer will not be liable in respect of any Claim and/or Loss in respect of which the Insured has at any time foregone, waived, excluded or limited a right of recovery against any other person, firm or entity, but only to the extent that the Insurer is prevented from exercising a recovery action for compensation from such parties. Should the Insured now be a party to such agreement or be requested to enter such an agreement in the future please advise the Insurer immediately in writing. COST OF THIS INSURANCE The cost of this Policy will be shown on the quotation provided, once all required information has been received. The cost of this Policy is calculated based on a number of considerations including Limit of Indemnity, Professional Services, the insurance history and the gross fee/income. 3

7 These factors, and the degree to which they affect the premium, will depend on the information the Insured provides to the Insurer. The cost of this Policy is made up of premium, government taxes such as Goods & Services Tax (GST) and stamp duty, where applicable. DEFINED TERMS This Policy has capitalised words with special meaning wherever they appear, to show that those words have a particular defined meaning. These words are defined in the Definitions section of the Policy. Where any word is defined every derivative of that word has a corresponding meaning. References to the singular also includes the plural and vice versa. 4

8 DEFINITIONS When used in this Policy, its Schedule and its Endorsements the following definitions will apply: Act of Terrorism Means any act, or preparation in respect of action, or threat of action designed to influence the government de jure or de facto of any nation or any political division thereof, or in pursuit of political, religious, ideological or similar purposes to intimidate the public or a section of the public of any nation by any person or group(s) of persons whether acting alone or on behalf of or in connection with any organisation(s) or government(s) de jure or de facto, and which: a) involves violence against one or more persons; b) involves damage to property; c) endangers life other than that of the person committing the action; d) creates a risk to health or safety of the public or a section of the public; or e) is designed to interfere with or to disrupt an electronic system. Application Means the written Application form together with all supplementary information and material provided by or on behalf of the Insured. Civil Liability Means the Insured s liability for any civil cause of action made by a third party for compensation based solely on the provision of or failure to provide the Professional Services. Claim Means: a) the receipt by the Insured of any written or verbal notice of a demand for compensation made by a third party against the Insured; or b) any writ, statement of claim, summons, application or other originating legal or arbitral process, cross-claim, counter claim or third or similar party notice served on the Insured. All claims arising directly or indirectly out of or in connection with the same source or originating cause shall be considered to constitute a single claim, for the purposes of the Limit of Indemnity and the Excess. Defence Costs Means reasonable legal costs and other expenses incurred by or on behalf of the Insured (with the written consent of the Insurer) or by the Insurer in the investigation, defence and/or settlement of a Claim. Documents Means deeds, wills, agreements, maps, plans, records, computer records, electronic data, written or printed books, letters, certificates, written or printed documents or forms of any nature. Documents does not mean money, negotiable instruments, bearer bonds or coupons, stamps, bank or currency notes. Employee Means any person (other than a director or partner of the Insured) employed under a contract of service or apprenticeship by the Insured and includes any trainee, volunteer and casual, part-time, seasonal, temporary and work experience personnel. Excess Means the Excess specified in the in the Schedule, being the amount that the Insured must first pay in respect of any compensation and Defence Costs payable under this Policy in respect of any Claim or Loss under this Policy. Inquiring Body Means a court, tribunal, or legally constituted industry or professional board. Inquiry Costs Means necessary and reasonable legal costs and expenses incurred by the Insured arising out of any notice requiring the Insured s attendance at an inquiry or hearing before an Inquiring Body. Insolvent Means becoming a body corporate, entity or person: a) that is bankrupt or unable to pay its debts as and when they fall due; or b) in respect of which an application for bankruptcy or winding up has been made; or c) in respect of which a Liquidator, Provisional Liquidator, Receiver, Receiver and Manager, or Official Manager has been appointed (whether or not by a Court); or d) in respect of which an administrator has been appointed or that is under administration; or e) that has executed a Deed of Company Arrangement that has not yet terminated; or f) that has entered into a compromise or arrangement with another person. Insured Means: a) any person, company, organisation and/or any other entity specified in the Schedule as the named Insured; b) any person who is a director, principal, partner, or Employee of the named Insured specified in the Schedule; c) any person who ceased to be a director, principal, partner, or Employee of the named Insured specified in the Schedule. 5

9 Insurer Means Great Lakes Reinsurance (UK) SE (ARBN , ABN , AFSL ) trading as Great Lakes Australia ( GLA ). Joint Venture Means an enterprise, which the Insured carries on together with some other party. Limit of Indemnity Means the applicable Limit of Indemnity specified in the Schedule inclusive of any applicable sub-limits as specified in this Policy. Loss Means the following: a) Inquiry Costs; b) Loss of Documents; c) Compensation for court attendance; d) Public relations expenses; e) Privacy breach costs; f) Court attendance costs; g) Compensatory penalties; or h) All other costs payable under this Policy which do not require the making of a Claim. Professional Services Means only those Professional Services that are provided by the Insured or on the Insured s behalf that are specified in the Schedule. Public Relations Expenses Means the reasonable costs, charges, fees and expenses of a public relations firm or consultant engaged to prevent or limit the adverse effects of or negative publicity from an adverse publicity event. Retroactive Date Means the Retroactive Date specified in the Schedule. Schedule Means any Schedule, Renewal Schedule or endorsement Schedule issued by the Insurer in connection with this Policy for the applicable Period of Insurance. Senior Counsel Means a barrister in active practice who is entitled to use the post nominals QC or SC in any superior court in the Commonwealth of Australia or the Dominion of New Zealand. Subsidiary Means a subsidiary of the named Insured as defined in the Corporations Act 2001 (Cth). Maximum Aggregate Limit of Indemnity Means the applicable Maximum Aggregate Limit of Indemnity specified in the Schedule inclusive of any applicable sub-limits as specified in this Policy. Period of Insurance Means the period specified in the Schedule. Policy Means this document each Schedule and any endorsements issued by the Insurer in connection with this Policy. 6

10 1. PREAMBLE Subject to payment of the premium specified in the Schedule, the Insurer agrees to provide insurance to the Insured on the terms of this Policy. 2. INSURING CLAUSES 2.1 COVER Subject to the terms, exclusions, conditions, limitations, definitions and the Limit of Indemnity that apply to this Policy, the Insurer will indemnify the Insured against Civil Liability for compensation and claimant s costs and expenses in respect of any Claim first made against the Insured during the Period of Insurance and notified to the Insurer during the Period of Insurance resulting from the conduct of the Professional Services. The Insurer s maximum liability to pay compensation and claimant s costs and expenses in respect of any one Claim first made against the Insured and notified to the Insurer during the Period of Insurance shall not exceed the Limit of Indemnity. The Insurers aggregate liability under this Policy will not exceed the Maximum Aggregate Limit of Indemnity for all Claims first made against the Insured and notified to the Insurer during the Period of Insurance. 2.2 DEFENCE COSTS In addition to the Limit of Indemnity the Insurer will pay Defence Costs incurred with the Insurer s prior written consent in the investigation, defence and/or settlement of any Claim for which the Insured is entitled to be indemnified under Insuring Clause 2.1. Provided that if a judgment or an amount required to settle a Claim exceeds the Limit of Indemnity, the Insurer s liability to pay Defence Costs is limited to the proportion the Limit of Indemnity bears to the amount required to be paid to dispose of the Claim. 2.3 CLARIFICATION OF INSURING CLAUSE For the purposes of clarifying the scope of cover under Insuring Clause 2.1 Cover of this Policy, Civil Liability includes: Consumer Protection Legislation Claims for Civil Liability (excluding criminal liability) resulting from a breach of a statutory duty under the Competition and Consumer Act 2010 (Cth), Corporations Act 2001 (Cth), National Consumer Credit Protection Act 2009 (Cth) or similar legislation enacted for the protection of consumers, within any Australian jurisdiction including any amendment, consolidation or re-enactment of such legislation, resulting from the conduct of the Professional Services. Libel or Slander Claims for Civil Liability for unintentional libel, unintentional slander or unintentional defamation committed by the Insured in the conduct of the Professional Services. Contractual Liability Claims for contractual liability, provided that: a) the Insurer will not be liable for any liability assumed by the Insured under any express warranty, guarantee, hold harmless agreement, indemnity clause or the like unless such liability would have attached to the Insured in the absence of such agreement; and b) where a Claim is an alleged breach of contract the Insurer will not reduce their liability by the mere fact that contributory negligence is not available as a defence. 3. AUTOMATIC EXTENSIONS PREAMBLE The Insurer agrees to provide cover under these extensions, for no additional premium, provided that: a) the indemnity provided is subject to the terms, exclusions, conditions, limitations, definitions, Excess and the Limit of Indemnity that apply to this Policy, unless otherwise stated within these extensions; and b) the inclusion of any Policy extension shall not increase the Limit of Indemnity nor the Maximum Aggregate Limit of Indemnity. 3.1 COMPENSATION FOR COURT ATTENDANCE The Insurer will pay the named Insured compensation if any Principal or Employee is required to attend court as a witness in connection with a Claim covered under this Policy, provided that the lawyers acting on behalf of the Insured requested the Principal or Employee to attend. The Insurer will pay the rate equivalent to the Principal or Employee daily take home salary up to $250 per person each day subject to a maximum of $10,000 for all persons any one Claim. 7

11 3.2 COMPENSATORY PENALTIES Notwithstanding exclusion 5.13 Multiple Damages, Fines and Penalties the Insurer will indemnify the Insured for compensatory civil penalties awarded against the Insured, which results from a proceeding commenced and notified to the Insurer in the Period of Insurance resulting from the conduct of the Professional Services. Provided that, the Insurer will not indemnify the Insured for compensatory civil penalties which: a) the Insurer is legally prohibited by law from indemnifying; or b) which result from a wilful, intentional or deliberate act, error or omission. The total liability of the Insurer under this extension will not exceed $250,000 in the aggregate during the Period of Insurance. 3.3 CONSULTANTS, SUB-CONTRACTORS AND AGENTS The Insurer will indemnify the Insured against Civil Liability for compensation and claimant s costs and expenses in respect of any Claim first made against the Insured during the Period of Insurance and notified to the Insurer during the Period of Insurance, resulting from the conduct of the Professional Services by any consultants, sub-contractors or agents of the Insured. No indemnity is provided for any Claim made against such consultants, sub-contractors or agents. 3.4 CONTINUOUS COVER Where the Insured: a) first became aware of facts or circumstances that might give rise to a Claim or Loss, prior to the Period of Insurance; and b) had not notified the Insurer of such facts or circumstances prior to the Period of Insurance, then exclusions 5.11 Known Circumstances and 5.12 Known Claims will not apply to any notification during the Period of Insurance of any Claim or Loss resulting from such facts or circumstances, provided that: i) there is an absence of fraudulent non-compliance with the Insured s duty of disclosure and an absence of fraudulent misrepresentation by the Insured in respect of such facts or circumstances; and ii) the Insured has been continuously insured, without interruption at the time of the notification of the Claim or Loss to the Insurer, iii) under a Civil Liability Professional Indemnity Insurance Policy issued by the Insurer and was insured by the Insurer at the time when the Insured first became aware of such facts or circumstances; and the Insurer may reduce its liability under the Policy to the extent of any prejudice the Insurer may suffer in connection with the Insured s failure to notify the facts or circumstances giving rise to a Claim or Loss prior to the Period of Insurance. 3.5 COURT ATTENDANCE COSTS The Insurer will pay an Insured up to $250 per day for costs incurred attending court where that Insured is required to attend court as a witness in connection with a Claim covered under this Policy, provided that the lawyers acting on behalf of the Insured requested the Insured to attend. The total liability of the Insurer under this extension will not exceed $50,000 in the aggregate during the Period of Insurance. 3.6 DISHONESTY The Insurer agrees that, exclusion 5.6 Dishonesty will not apply to any Claim first made against the Insured during the Period of Insurance and notified to the Insurer during the Period of Insurance arising from or attributable to any dishonest, fraudulent, criminal or malicious act, error or omission of any Employee occurring or committed in connection with the Professional Services. Provided that, no indemnity is available: a) where the Insured has knowingly engaged in or condoned such conduct; b) for any person committing or condoning the act, error or omission; or c) for any loss sustained or liability incurred as a result of any act, error or omission occurring after the date on which the Insured first discovers, or has reasonable cause for suspicion of, dishonest, fraudulent, criminal or malicious conduct on the part of any such person. 3.7 ESTATES The Insurer will indemnify the estate, heirs, legal representatives or assigns of any deceased, incompetent or Insolvent Insured against Civil Liability for compensation and claimant s costs and expenses in respect of any Claim first made against the Insured during the Period of Insurance and notified to the Insurer during the Period of Insurance. 8

12 3.8 EXTENDED REPORTING PERIOD In the event that this Policy is neither renewed nor replaced at the end of the Period of Insurance with a policy that covers substantially the same risk, the named Insured will be entitled to purchase an extended reporting period of 365 days. Provided that: a) the name Insured will not be entitled to purchase an extended reported period under this extension if the named Insured becomes Insolvent during the Period of Insurance; b) the named Insured is required to pay the additional premium the Insurer determines to be applicable; and c) the entitlement to purchase this extension lapses on the expiry of the Period of Insurance. 3.9 FORMER PRINCIPALS The Insurer will indemnify former principals, partners, directors and Employee(s) of the Insured against Civil Liability for compensation and claimant s costs and expenses in respect of any Claim first made against them during the Period of Insurance and notified to the Insurer during the Period of Insurance, provided always that the definition of the Insured includes those persons resulting from the conduct of the Professional Services performed while a principal, partner, director or Employee of the Insured FORMER SUBSIDIARY The Insurer will indemnify the former Subsidiary of the named Insured against Civil Liability for compensation and claimant s costs and expenses in respect of any Claim first made against the former Subsidiary during the Period of Insurance and notified to the Insurer during the Period of Insurance resulting from the conduct of the Professional Services. Provided that: a) the former Subsidiary is specified in the Application; and b) such indemnity only applies arising out of any act, error or omission occurring prior to the date such Subsidiary ceased to be a Subsidiary of the named Insured INDEMNITY TO CONTRACTORS The Insurer will indemnify any person who is a past and/or present contractor of the named Insured against Civil Liability for compensation and claimant s costs and expenses in respect of any Claim first made against the contractor during the Period of Insurance and notified to the Insurer during the Period of Insurance resulting from the conduct of the Professional Services. Provided that: a) at the time of any act, error or omission such contractor was not an Employee of the named Insured and they: i) had entered into a contract for Professional Services with the named Insured where they earnt at least 90% of their income (for the 6 months prior) from the named Insured; and ii) were under the direct control and supervision of the Insured; b) the named Insured declared the income to the Insurer generated by the contractor in the Application; and c) such contractor shall be subject to all the terms of this Policy as if they were an Insured INQUIRY COSTS Insurer will indemnify the Insured for Inquiry Costs Incurred by the Insured with the Insurer s prior written consent. Provided that: a) the notice requiring the Insured s attendance at the inquiry or hearing is first received by the Insured and notified to the Insurer during the Period of Insurance; b) such attendance arises directly from conduct allegedly committed by the Insured resulting from the conduct of the Professional Services; c) regular or overtime wages, salaries or fees of the Insured are excluded from this indemnity; and d) the total liability of the Insurer under this clause shall not exceed $250,000 during the Period of Insurance INTELLECTUAL PROPERTY The Insurer will indemnify the Insured against Civil Liability for compensation and claimant s costs and expenses in respect of any Claim first made against the Insured during the Period of Insurance and notified to the Insurer during the Period of Insurance, for infringement of rights of intellectual property, provided that the act, error or omission by the Insured is unintentional and is committed in the conduct of the Professional Services JOINT VENTURE The Insurer will indemnify the Insured against Civil Liability for compensation and claimant s costs and expenses in respect of any Claim first made against the Insured during the Period of Insurance and notified to the Insurer during the Period of Insurance, resulting from the conduct of the Professional Services as part of a Joint Venture. 9

13 Provided that: a) the fees or income derived from participation in such Joint Venture have been included in the Application for the purposes of calculating the premium for this Policy; and b) the Joint Venture is not otherwise insured by any other more specific insurance in respect of the Joint Venture. There is no cover under this Policy for the Insured s Joint Venture partner(s) and the Insurer will only indemnify the Insured for their portion of the Joint Venture LOSS OF DOCUMENTS If during the Period of Insurance the Insured first discovers that any Documents the property of or entrusted to the Insured have been destroyed, damaged, lost or mislaid the Insurer agrees to provide cover for costs and expenses of whatsoever nature incurred by the Insured in replacing or restoring such Documents. Provided that: a) such costs and expenses are supported by accounts approved by a competent person nominated by the Insurer; b) the Documents were not lost due to wear, tear, vermin, mould or mildew or any other gradually operating cause; c) such loss or damage is sustained during the Period of Insurance while the Documents are either in custody of the Insured or any person who the Insured has entrusted them resulting from the conduct of the Professional Services; d) where the Documents are in electronic format, the Insured or any person to whom the Insured has entrusted them, have sufficient and proper procedures in place for the security and the daily back-up of those Documents; e) the maximum aggregate amount payable by the Insurer under this extension in any Period of Insurance is $300, NEWLY CREATED OR ACQUIRED SUBSIDIARY If during the Period of Insurance the named Insured acquires or creates a new Subsidiary, the Insurer will indemnify the new Subsidiary against Civil Liability for compensation and claimant s costs and expenses in respect of any Claim first made against the Subsidiary during the Period of Insurance and notified to the Insurer during the Period of Insurance resulting from the conduct of the Professional Services. Provided that, this indemnity only applies: a) from the date of acquisition or creation and ending 30 days after (or earlier if the Policy ends sooner); b) to acts, errors or omissions occurring after the date the named Insured created or acquired the Subsidiary; c) to Subsidiaries which are domiciled in Australia or New Zealand; and d) to Subsidiaries that conduct the same Professional Services as the named Insured PRIVACY BREACH COSTS The Insurer will indemnify the Insured against Civil Liability for compensation and claimant s costs and expenses in respect of any Claim first made against the Insured during the Period of Insurance and notified to the Insurer during the Period of Insurance, for breach of any duty of privacy or confidentiality, provided that the act, error or omission by the Insured is unintentional and is committed in the conduct of the Professional Services PUBLIC RELATIONS EXPENSES The Insurer will indemnify the named Insured for Public Relations Expenses incurred with the written consent of the Insurer in respect of an adverse publicity event that first occurs in the Period of Insurance and is notified to the Insurer in the Period of Insurance. Provided that: a) the adverse publicity event is one that has the potential to seriously impact the reputation of the named Insured; b) the named Insured is liable for the first $1,000 of Public Relations Expenses incurred for any one event; and c) the total liability of the Insurer under this extension will not exceed $50,000 in the aggregate during the Period of Insurance RUN-OFF COVER The Insurer agrees to continue the cover under this Policy to any person, corporation, Subsidiary or entity insured by this Policy until expiry of the Period of Insurance if: a) such person retires or otherwise ceases to provide Professional Services; or b) such entity ceases to exist or operate or is consolidated with, merged into or acquired by any other entity. Provided that this extension only applies in relation to Civil Liability for a breach of Professional Services by reason of any act, error or omission occurring prior to the date that any such person retires or otherwise ceases to provide Professional Services or such corporation, entity or Subsidiary ceases to exist or operate or is consolidated with, merged into or acquired by any other entity. 10

14 3.20 SPOUSAL LIABILITY The Insurer will indemnify an Insured s spouse against Civil Liability for compensation and claimant s costs and expenses in respect of any Claim first made against the Insured s spouse during the Period of Insurance and notified to the Insurer during the Period of Insurance resulting from the conduct of the Professional Services. Provided that: a) the Claim is being made against the spouse solely by reason of the spouse s legal status as spouse or due to the spouse s ownership interest in property which the claimant seeks recovery; and 3.21 THIRTY DAY REPORTING PERIOD The Insurer agrees that the Insured may continue to notify the Insurer of Claims up to 30 days after the expiry of the Period of Insurance in relation to Claims first made against the Insured during the Period of Insurance which result from any act, error or omission committed or alleged to have been committed prior to expiry of the Period of Insurance. Any notification under this extension will be deemed to have been first notified to the Insurer during the Period of Insurance. b) the Claim is not as a result of any act, error or omission by such spouse. 4. OPTIONAL COVER PREAMBLE The Insurer agrees to provide cover under this Optional Cover if it is specified as included in the Schedule, provided that: a) the indemnity provided is subject to the terms, exclusions, conditions, limitations, definitions, Excess and the Limit of Indemnity that apply to this Policy, unless otherwise stated within this Optional Cover; and b) the inclusion of this Optional Cover shall not increase the Limit of Indemnity. 4.1 PRINCIPAL S PREVIOUS BUSINESS The Insurer will indemnify past and/or present principal of the Insured against Civil Liability for compensation and claimant s costs and expenses in respect of any Claim first made against the principal during the Period of Insurance and notified to the Insurer during the Period of Insurance, resulting from the conduct of their Professional Services whilst they were a sole practitioner, a partner of a firm or a director of a company not included as an Insured under this Policy, prior to their becoming a principal of the Insured. Provided that, the Professional Services of the sole practitioner or company which is not included as an Insured is no different from the Professional Services specified in the Schedule of the Insured. 11

15 5. EXCLUSIONS This Policy does not apply to, and the Insurer will not be liable in respect of any Claim and/or Loss: 5.1 AIRCRAFT, MOTOR VEHICLE AND WATERCRAFT Arising from, attributable to or in any way connected with the Insured s ownership, lease, operation or use of any aircraft, motor vehicle or watercraft. 5.2 ASBESTOS Arising from, attributable to or in any way connected with, resulting as a consequence of, or related to asbestos, whether or not there is another cause of loss which may have contributed concurrently or in any sequence to a loss. 5.3 CONSENSUAL CLAIMS Brought or maintained by or on behalf of any person or entity with the solicitation, co-operation or assistance of any Insured. 5.4 CONTRACTUAL LIABILITY Arising from, attributable to or in any way connected with any duty, obligation or liability assumed by the Insured by contract, warranty, guarantee or indemnity, unless such duty, obligation or liability would have existed in the absence of such assumption. 5.5 DIRECTOR AND OFFICERS LIABILITY Arising from, attributable to or in any way connected with the Insured s functions and duties as a director and/or officer of the Insured or any legal entity, corporation or other incorporated body. 5.6 DISHONESTY Arising from, attributable to or in any way connected with any dishonest, fraudulent, criminal or malicious conduct of the Insured or any Employee. Such conduct also includes, but is not limited to, acts or omissions which are: a) committed with reckless disregard for the consequences thereof; or b) a wilful breach of statute, contract or duty. This exclusion will only apply where it is established by an admission of such Insured or Employee or by a judgment, award, finding or other adjudication of a court, tribunal, commission, or arbitrator that such conduct did in fact occur. 5.7 EMPLOYER S LIABILITY Arising from, attributable to or in any way connected with: a) the death, bodily injury, disease or illness of any Insured arising out of or in the course of or in respect of their employment with the Insured; or b) a breach of any obligation owed by the Insured as an employer, to an Employee. 5.8 GEOGRAPHICAL LIMITS Arising from, attributable to or in any way connected with any act, error or omission occurring in the United States of America (including its territories and protectorates). 5.9 INSOLVENCY First made or intimated subsequent to the date upon which the Insured becomes Insolvent. This exclusion shall not apply where the Insured establishes, to the satisfaction of the Insurer, that the Claim would have arisen notwithstanding that the Insured was Insolvent JURISDICTION Brought in a court of law, tribunal or other body entitled to enforce orders against the Insured in the United States of America (including its territories and protectorates) or from the enforcement of any judgment, order or award in respect of any court of law, tribunal or other body in the United States of America (including its territories and protectorates) KNOWN CIRCUMSTANCES Arising from, attributable to or in any way connected with any facts, circumstances or occurrences: a) noted on the Application for the current Period of Insurance or on any previous application to any insurer or of which notice had been given to any insurer under any previous policy, however expressed; or b) of which the Insured was aware prior to the commencement of the Period of Insurance and which the Insured knew (or ought reasonably to have realised) may give rise to a Claim or Loss KNOWN CLAIMS Arising from, attributable to or in any way connected with any Claim first made against the Insured prior to the start of the Period of Insurance. 12

16 5.13 MULTIPLE DAMAGES, FINES AND PENALTIES For: a) exemplary, aggravated, punitive or liquidated damages; or b) fines or penalties OCCUPIER S LIABILITY Arising from, attributable to or in any way connected with the Insured s ownership, occupation, control or management of real property RELATED PARTIES Brought or maintained by or on behalf of: a) any other person or entity who is an Insured or a subsidiary of an Insured; or b) any person or entity who or which is related to or associated with an Insured RETROACTIVE DATE Arising from, attributable to or in any way connected with any act, error or omission occurring prior to the Retroactive Date RIGHTS OF CONTRIBUTION OR INDEMNITY 5.20 WAR, TERRORISM AND NUCLEAR MATERIAL a) caused by or arising directly or indirectly out of or in connection with war, invasion, acts of foreign enemies, hostilities or warlike operations (whether war be declared or not), civil war, mutiny, civil commotion, coup, military rising, insurrection, military or usurped power, rebellion, revolution, confiscation, nationalisation, requisition or looting, sacking or pillage, destruction of or damage to b) property by or under the order of any government or local authority; c) for death, injury, illness, loss, damage, cost or expense directly or indirectly caused by, contributed to by, resulting from or arising out of or in connection with any Act of Terrorism regardless of any other cause or event contributing concurrently or in any other sequence to the loss; d) for death, injury, illness, loss, damage, cost or expense directly or indirectly caused by, contributed to by, resulting from, or arising out of or in connection with any action in controlling, preventing, suppressing, retaliating against, or responding to any Act of Terrorism; or e) caused by or arising directly or indirectly out of or in connection with nuclear weapons material or ionising radiation or contamination by radioactivity from any nuclear fuel or nuclear waste or from the combustion of nuclear fuel or from any other self- sustaining process of nuclear fission. In respect of which the Insured has at any time foregone, waived, excluded or limited a right of recovery against any other person, firm or entity, but only to the extent that the Insurer is prevented from exercising a recovery action for compensation from such parties SANCTIONS To the extent that the provision of such cover, payment or benefit is prohibited by law or by doing so will expose the Insurer to any sanction, prohibition or restriction under United Nations resolutions or any applicable trade or economic sanctions, laws or regulations TRADING DEBT Arising from, attributable to or in any way connected with any trading debt incurred by the Insured or any guarantee given by the Insured for any debt. 13