Professional Indemnity Policy Architects - Allianz Australia...• that we know or, in the ordinary course of our business as an insurer, ought to know; or • as to which compliance

Professional Indemnity Policy ArchitectsPolicy Document.

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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.BreachofContract

25.PursuitCosts

26.PrincipalsIndemnity

Part3–OptionalExtensions

27. BreachofPrivacy:ResponseCostsandFinesandPenalties

28. FidelityInsurance

29. Subsidiaries–Pre-AcquisitionLiability

30. JointVentures

31. PreviousBusiness

32.Run-offafterMerger,TakeoverorSale

33.IncomingContinuousCover

34.WorkplaceStatutoryLiabilityInsurance

35.CollateralWarranties

36.NovatedContracts

37.ProportionateLiabilityWaiver

Part4–Exclusions

38. Asbestos

39. AssociatedPersonsorEntities

40. AssumedDutyorObligation

41. ContractualLiability/GuaranteeorWarranty

42. FinesandPenalties


44. ObligationtoEmployees

45. RadioactivityandNuclearRisk

46. PriorClaims/Circumstances

47. RetroactiveDate

48. TradingDebts

49. USAJurisdiction

50. WarandTerrorism

51.CostEstimates

52.Insolvency

53.InsuranceandFinancialAdvice

54.Manufacturing,ConstructionandPropertyDevelopment

55.UseofProperty

56. PersonalInjuryandPropertyDamage

Part5–ClaimsConditions

57. Notification

58. Co-operation

59. Mitigation

60. OurConsent

61. DefenceandSettlement

62. Disputes

63. ElectiontoContest

64. Allocation


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Part6–OtherConditions

65. Assignment

66. Cancellation

67. ChangeofControl

68. Currency

69. GST

70. Plurals,HeadingsandTitles,Interpretation

71. ScopeandGoverningLaw

72. Subrogation

73. 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.

Exclusion43‘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) butforyourfailuretonotifyusofthefactsduringthepreviouspolicyperiod,youwouldhavebeenentitledtoindemnityunderapreviouspolicyissuedbyus;and

(c) butfortheExclusion46‘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,omissionorbreachthatwouldotherwisehaveresultedinExclusion43‘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. BreachofContract

Weagreetoindemnifyyouagainstallcivilliabilityfordamagesandawardsofclaimants’costsinrespectofanyclaimfirstmadeagainstyouduringtheperiodofcoverinrespectofabreachoranallegedbreachofcontractinyourprovisionoforfailuretoprovideprofessionalservices.

25. PursuitCosts

Weagreetopay,inrespectofaninsuredeventofwhichyoufirstbecameawareduringtheperiodofcover,anypursuitcoststhatyouincurwithourwrittenconsent.

25.1 Definitions

ForthepurposesofthisExtensiononly:

(i) pursuitcostsmeansreasonableexternallegalcosts,charges,fees(includinglegalcounselsfeesandexpertsfees)andexpensesnecessarilyincurredinpursuitofaninsuredevent.Thisdoesnotincludeyourownfirstpartyand/orprofessionalcostsinvolvedinthepursuitofaninsuredevent,suchaspreparationofevidence,attendanceatcourthearings,professionaltimecostsandthelike;

(ii) insuredeventmeansanactionforrecoveryofprofessionalfeesorotheramountsduetoyouunderacontractenteredintobyyoutoprovideprofessionalserviceswheresuchprofessionalfeesoramountsexceed$20,000;

(a) theprosecutionofacauseofactionarisingoutoftheownershiporpossessionofanyrealpropertybyyouintheprovisionofprofessionalservices.However,thisdoesnotincludeanydisputesorcauseofactionrelatingtoorarisingoutofanyrentalagreements.

25.2 ScopeofIndemnity

OurliabilitytoindemnifyyouunderthisExtensionissubjecttothefollowing:

(i) weareonlyliabletoindemnifyyouforpursuitcostsonceyouhaveinstitutedlegalproceedings;and

(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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(ii) wehavereceivedlegaladvice,atyourcost,thatyouhavereasonableprospectofsuccessinthepursuitofaninsuredevent.Ifweagreetopaypursuitcostsand,duringtheconductofthelitigation,wereceivelegaladvicethattheinsuredeventcannolongerbepursuedwithreasonableprospectsofsuccess,wewillnotbeliableforanyfurtherpursuitcostsfromthedateofsuchlegaladvice;and

(iii) wearenotliabletoindemnifyyouforpursuitcostsinrespectofaninsuredeventwhereyoufirstbecameawareacauseofactionmorethan12monthspriortotheinceptionoftheperiodofcover.

25.3 SublimitofIndemnity

WeareonlyliabletoindemnifyyouunderthisExtensionforpursuitcostsuptoanamountnotexceeding:

(i) $100,000inrespectofaninsuredevent;or

(ii) 75%ofyourpursuitcosts;or

(iii)25%oftheoutstandingamountdueundercontract;

whicheveristhelesser.

However,weareonlyliabletoindemnifyyouforanamountnotexceeding$100,000intheaggregateduringtheperiodofcover.

25.4 Deductible

Youmustpayallpursuitcostsuptoanamountof$2,000beforeweareliabletoindemnifyyouunderthisExtension.

25.5 AdditionalexclusionsapplicabletothisExtension

Wearenotliabletoindemnifyyouinrespectofpursuitcostsdirectlyorindirectlybasedupon,attributableto,orinconsequenceof:

(i) thepaymentorfailuretopayanytaximposedorchargeleviedby,orentitledtobeleviedby,anyGovernmentorstatutoryauthority,orpursuanttoanystatute;or

(ii) thetransitbyseaorairofanygoodsorpropertyofanykind;or

(iii) pollution,seepageorcontaminationofwhatevernaturecausedbyorallegedlycausedbyyou;or

(iv)youactingincollusionwithanyotherpersonorentity;or

(v) anypursuitcostsincurredwithoutourpriorwrittenapproval;or

(vi)anymatter,causeofactionorrightofentitlementwhichisthesubjectofanycompulsorythirdpartymotorinsuranceoraccidentcompensationschemeorworkerscompensationofworkersaccidentscheme;or

(vii) youactingasadirector,orholdinganyotherpositionorofficeinacorporation;or

(viii) anymatter,causeofactionorrightofentitlementinrelationtothedeathorbodilyinjuryofanypersonorthecontraction,accelerationoraggravationofanydiseasebyanyperson;or

(ix) thepaymentofanyfine,penalty,compensationordamagesofanykind.

26. 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.


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

(d) allinterrelatedindividualdishonest,fraudulentormaliciousactsshallbedeemedtoconstituteasinglelossunderthisExtension.

CoverunderthisExtensionshallnotexceedtheFidelityGuaranteelimitofindemnityspecifiedinthescheduleintheaggregateduringtheperiodofcover.TheFidelityGuaranteedeductiblespecifiedinthescheduleshallapplytoeachdirectfinanciallosscoveredunderthisExtension.

29. Subsidiaries–Pre-AcquisitionLiability

Weagreetoindemnifyasubsidiaryagainstallcivilliabilityfordamagesandawardsofclaimantscostsarisingfromanyclaimthatisfirstmadeagainstthesubsidiaryduringtheperiodofcoverandisnotifiedtousduringtheperiodofcoverinrespectofanyact,errororomissioncommittedorallegedtohavebeencommittedbythesubsidiarybeforethedatethatyouacquiredthesubsidiarybutaftertheretroactivedatespecifiedinthescheduleinrespectofitsconductofthesameprofessionasyourprofessionalservices.

30. JointVentures

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

31. PreviousBusiness

Weagreetoextendindemnityforanyclaimmadeduringtheperiodofcoveragainstsuchpersonwhoisorbecomesaprincipal,orofficerofyoursinrespectofcivilliabilityfordamagesandawardsofclaimants’costsincurredorallegedtohavebeenincurredonthepartofsuchpersonintheconductofthesameprofessionasyourprofessionalbusinessbeforethatpersonjoinedyou.

32. Run-OffafterMerger,TakeoverorSale

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

Part3–OptionalExtensions27. BreachofPrivacy:ResponseCostsandFinesandPenalties

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

27.2 Forthepurposesofsubclause27.1,suchresponsecostsshallnotinclude:

(a) publicrelationsexpenses;

(b)wages,overtime,salariesorfeestoofficersoremployees;

(c) costtocomplywithanyinjunctiverelief.

27.3 NotwithstandingExclusion42‘FinesandPenalties’,wewillalsopayfinesandpenaltiespayablebyyouarisingfromsuchactual,allegedorsuspectedbreachofprivacyunderthePrivacy Act 1988 (Cth)amendmentstheretoorsimilarlegislation.

27.4 Forthepurposesofsubclause27.3,wewillnotbeliabletoindemnifyyouforanysuchfineorpenalty:

(a) forwhichwearelegallyprohibitedfromindemnifyingyouunderanylaw;

(b)basedupon,attributabletoorinconsequenceofanyrecklessnessoranywilful,intentionalordeliberatefailuretocomplywithanylawfulnoticeordirection,enforcementactionorproceedingunderanylegislation.

27.5 CoverunderthisExtension27shallnotexceed$100,000intheaggregatefortheperiodofcover.

28. FidelityInsurance

Wewillindemnifytheinsuredfordirectfinanciallossdiscoveredandnotifiedtousduringtheperiodofcoverresultingfromanydishonest,fraudulentormaliciousactofanyemployeeorofficer,whethercommittedaloneorincollusionwithothers.

OurliabilitytoindemnifyyouunderthisExtensionissubjecttothefollowing:

(a) wearenotliabletoindemnifyyouunderthisExtensionifyoupersonallycommittedorcondonedanyact,omissionorbreachexcludedbyExclusion43‘FraudandDishonesty’;

(b) youmustbearanycostsorexpensesthatyouincurinestablishingorsubstantiatingtheexistenceoramountofthedirectfinancialloss;


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ThisExtensionisonlyavailableiftheinsuredacceptstheadditionalterms,conditions,exclusionsorpremiumaswemayrequire.

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

33. IncomingContinuousCover

Weagreetoindemnifyyouagainstcivilliabilityfordamagesandawardsofclaimants’costsinrespectofanyclaimfirstmadeagainstyouduringtheperiodofcover,thatarisesoutoffactswhichfirstbecameknowntoyoupriortotheperiodofcoverwhere:

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

(b) butforyourfailuretonotifyyourpreviousprofessionalindemnityinsurerofthefactsduringthe“previouspolicyperiod”,youwouldhavebeenentitledtoindemnityunderapreviouspolicy;and

(c) butfortheExclusion46‘PriorClaims/Circumstances’youwouldbeentitledtoindemnityunderthispolicy;and

(d) youhavenotcommittedorattemptedtocommitfraudulentnon-disclosureorfraudulentmisrepresentation.

Weareonlyliabletoindemnifyyoutotheextentthatweareobligedtoindemnifyyouunderthetermsandconditionsofthispolicy,butinnocircumstancesshallthecovergrantedbythisExtensionbegreaterthanthetermsandconditionsofthepolicyineffectduringthe“previouspolicyperiod”(includingthelimitofindemnityanddeductible).

Wemayreduceourliabilitytoyoubytheamountthatfairlyrepresentstheextenttowhichwehavebeenprejudicedasaresultofthelatenotification.ForthepurposesofthisExtension,prejudicewillincludelostopportunitiestoresolvetheclaimanddifficultiesorincreasedcostsincurredindefendingaclaimduetothedelayinnotification.

34. WorkplaceStatutoryLiabilityInsurance

NotwithstandingExclusion42‘FinesandPenalties’andExclusion44‘ObligationtoEmployees’,wewillpayonyourbehalfalldefencecostsandanyfinesandpenaltiesincurredinconnectionwithanyclaimfirstmadeagainstyouduringtheperiodofcoverforanyact,error,omissionorotherconductthatgivesrisetoanotifiableincidentunderworkhealthandsafetylegislationinAustralia,providedthattheconductgivingrisetotheclaimwasnotintentional,wilful,recklessordeliberate.

Wewillnotbeliabletoindemnifyyouforanyfineorpenaltyforwhichwearelegallyprohibitedfromindemnifyingyouunderanylaw.

CoverunderthisExtensionshallnotexceed$250,000intheaggregatefortheperiodofcover.

35. CollateralWarranties

NotwithstandingExclusion41‘ContractualLiability/GuaranteeorWarranty’,weagreetoindemnifyyouagainstcivilliabilityfordamagesandawardsofclaimants’costsinrespectofanyclaimthatisfirstmadeagainstyouduringtheperiodofcoverinrespectofanycollateralwarrantiesorsimilaragreementsprovidedtousbyyou,andwherewehavespecificallyagreedinwritingtoindemnifyyouinrespectofsuchcollateralwarrantyorsimilaragreement.

Weareonlyliabletoindemnifyyoutotheextentthatthebenefitsofsuchwarrantiesoragreementsarenotgreaterorlongerlastingthanthosegiventothepartywithwhomyouoriginallycontractedtoprovideprofessionalservices,andonlytotheextentthatsuchliabilitywouldhaveattachedtoyouintheabsenceofsuchcontractualduty,termoragreement.

ForthepurposeofthisExtension,wearenotliabletoindemnifyyouinrespectofanyclaimdirectlyorindirectlybasedupon,attributableto,orinconsequenceofany:

(a) liabilityarisingfromtheprovisionbyyouofanexpresstermguaranteeingorwarrantingthefitnessforpurposeorsimilar;

(b) liabilityarisingunderanyexpressguaranteethattheworkswillsatisfyanyparticularperformancespecificationoranyexpressguaranteerelatingtotheperiodoftheproject;

(c) anyexpresscontractualpenaltyofafinancialnatureorliquidateddamages.

36. NovatedContracts

WeagreethatExclusion40‘AssumedDutyorObligation’doesnotapplytoadutyorobligationassumedbyyouunderanovatedcontractwhere:

(a) youpurchaseoracquireanotherbusinessorcontract;

(b) youassumeresponsibilityforprofessionalservicespreviouslyundertakenbyanotherparty;or

(c) yourcontracttoprovideprofessionalservicesisnovatedtoanotherparty.

WearenotliabletoindemnifyyouunderthisExtensioninrespectof:

(i) liabilitiesinthenovatedcontractthatwerenototherwisecoveredbythepolicypriortosuchcontractbeingnovated;or

(ii) anyadditionalliabilitiesyouincurbyvirtueofthenovationofanovatedcontracttoyou.


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

38. Asbestos

asbestosoranymaterialscontainingasbestos.

39. Associatedpersonsorentitiesanyclaimmadebyoronbehalfof:

(a) anyinsuredpersonorentity;or

(b) anyparent,successororassignofanyinsuredpersonorentity,or

(c) anyentityinwhichaninsuredpersonorentityorthemanagementoftheinsuredorsubsidiaryhasanexecutiveorcontrollinginterest,or

(d) anyofficeroremployeeunlesssuchclaimismadebyoronbehalfofanofficeroremployeeasacustomerorclientofyours.

40. AssumedDutyorObligation

anydutyorobligationassumedbyyououtsidethenormalcourseofyourprofessionalbusiness.

41. ContractualLiability/GuaranteeorWarranty

(a) anyliabilityassumedunderanycontractoragreement;or

(b) anyexpressorimpliedguaranteeorwarranty;

excepttotheextentsuchliabilitywouldhaveattachedtoyouintheabsenceofsuchcontractoragreement.

42. FinesandPenalties

punitive,aggravated,multipleorexemplarydamages,orfinesorpenaltiesimposedbylaw.

Thisexclusionshallnotapplytocompensatorycivilpenalties,providedthat:

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

(b) wewillnotbeliabletoindemnifyyouforanycompensatorycivilpenaltyforwhichwearelegallyprohibitedfromindemnifyingyouunderanylaw;

(c) wewillnotbeliabletoindemnifyyouforanycompensatorycivilpenaltybasedupon,attributabletoorinconsequenceofany:

(i) wilful,intentionalordeliberatefailuretocomplywithanylawfulnoticeordirection,enforcementactionorproceedingunderanylegislation;

ForthepurposesofthisExtension,anovatedcontractisanycontractnotedassuchbywayofendorsementtothispolicy.

37. ProportionateLiabilityWaiver

WeagreethatExclusion40‘AssumedDutyorObligation’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.


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(ii) recklessness;

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


(a) thegainingoforintentionalattempttogainprofit,remunerationoradvantagetowhichyouwerenotlegallyentitled;or

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

intheeventthatanyoftheaboveisestablishedbyfinaladjudicationofajudicialorarbitraltribunalorbyyourwrittenadmission.

44. ObligationtoEmployees

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

45. RadioactivityandNuclearRisk

ionisingradiationorthecontaminationbyradioactivityfromanynuclearfuelorfromanynuclearwastefromthecombustionofanynuclearfuel.

46. PriorClaims/Circumstances

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

(b) factsorconductwhichhaveorhasbeennotifiedunderanyearlierpolicy;or

(c) factsorconductwhichyouknew,oroughtreasonablytohaveknown,priortothecommencementofthispolicymightgiverisetoaclaimorinquiry;or

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

47. RetroactiveDate

anycivilliability,act,errororomissionorotherconductwhichfirstoccursbeforetheretroactivedatespecifiedintheschedule.

48. TradingDebts

anytradingdebtthatyouincuroranyguaranteethatyougiveforadebt.

49. USAJurisdiction

(a) anyclaimmadeinordeterminedpursuanttothelawoftheUnitedStatesofAmericaoranyofitsterritoriesorprotectorates,oranyinquiryconductedintheUnitedStatesofAmericaoranyofitsterritoriesorprotectorates;or

(b) theenforcementofjudgments,ordersorawardsobtainedwithinordeterminedpursuanttothelawoftheUnitedStatesofAmericaoranyofitsterritoriesorprotectorates.

50. WarandTerrorism

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

51. CostsEstimates

anyestimateofconstructioncostorcostestimatebeingexceededexceptwheresuchestimatesarecompiledbyaregisteredquantitysurveyororotherappropriatelyqualifiedprofessional.

52. Insolvency

theinsolvency,liquidation,administrationorreceivershipofyouoranypartyinvolvedinanyprojectorcontract.

53. InsuranceandFinancialAdvice

(a) anyfailuretoeffectormaintaininsurance,suretyorbond;or

(b) adviceoninsurance;or

(c) adviceoninvestment,marketing,financialortaxmatters;or

(d) theprovisionoffinance.

54. Manufacturing,ConstructionandPropertyDevelopment

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

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


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Part5–ClaimsConditions57. Notification

Youmustnotifyusofanyclaimmadeagainstyouduringtheperiodofcoverassoonaspracticableaftertheclaimismade.Youmustgivenoticeofanyclaim,lossorothermatterinwriting,andsenditto:

TheClaimsManager,ProfessionalRisksDivisionAllianzAustraliaInsuranceLimited2MarketStreet,Sydney,NSW,2000.

58. Co-operation

Youmustatyourowncost:

(i) renderallreasonableassistancetousandco-operateinthedefenceofanyclaimorinquiryandtheassertionofindemnificationandcontributionrights;

(ii) givesuchinformationandassistancetousaswemayreasonablyrequiretoenableittoinvestigateanyclaimorinquiryordetermineourliabilityunderthispolicy.

59. Mitigation

Youmustuseallduediligenceanddoandconcurindoingallthingsreasonablypracticabletoavoidordiminishanycivilliability,defencecostsoranyothercostsorlossinrespectofwhichweareliabletoindemnifyyouunderthispolicy.

60. OurConsent

Youshallnotadmitorassumeanyliability,enterintoanysettlementagreementorconsenttoanyjudgmentinrelationtoanyclaimorinquirywithoutourpriorwrittenconsent.

61. DefenceandSettlement

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

IfthereisanydisputebetweenusandyouaboutwhethertoagreetoaproposedsettlementoraboutwhetheraclaimshouldcontinuetobedefendedthedisputeshallbedealtwithinaccordancewithCondition61‘Disputes’.

62. Disputes62.1 General

NeitherwenoryoumayrequiretheothertocontestanyclaimunlessSeniorCounseladvisesthattheclaimshouldbecontested.

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

(d) youractivitiesasapropertydeveloper.

55. UseofProperty

theownership,use,occupationorleasingofanypropertybyyou,tooronyourbehalf.

56. PersonalInjuryandPropertyDamage

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

(b) physicallossof,damageto,ordestructionofanytangiblepropertyincludinganylossofuseoftangibleproperty;

unlessdirectlyarisingoutofyourprovisionoforfailuretoprovideprofessionalservices.


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Part6–OtherConditions65. Assignment

Thispolicyandanyrightsunderorinrespectofitcannotbeassignedbyyouwithoutourpriorwrittenconsent.

66. Cancellation

(i) Youmaycancelthispolicybygivingnoticeinwritingtous.Ifsuchnoticeisgiven,thecancellationwilltakeeffectonthedaythenoticeisreceivedbyus.

(ii) WemaycancelthispolicyinanyofthecircumstancessetoutintheInsuranceContractsAct1984.Suchcancellationistotakeeffect30daysfromthetimenotificationisreceivedbyyou.

(iii) Uponcancellationbyyouorus,youwillreceivean80%proratarefundofpremiumfortheunexpiredportionoftheperiodofcoversubjecttonoclaimsorcircumstancesorinquirieshavingbeenmadeduringtheperiodofcover.

(iv) Whenthepremiumissubjecttoadjustment,cancellationwillnotaffectyourobligationtosupplytoussuchinformationasisnecessarytopermitthepremiumadjustmenttobecalculatedandtopaytheamountoftheadjustmentapplicableuptothedateofcancellation.

67. ChangeofControl

Weshallnotbeliabletomakeanypaymentortoprovideanyservicesinconnectionwithanyclaimorinquiryarisingoutof,baseduponorattributabletoanycivilliability,act,errororomissionorotherconductcommittedaftertheoccurrenceofamerger,takeover,orsale,excepttotheextentthatthereiscoverunderOptionalExtension32‘Run-offafterMerger,TakeoverorSale’,andsuchcoverhasbeenincludedunderthispolicy.

68. Currency

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

Informulatinghisorheradvice,SeniorCounselmusttakeintoconsiderationthedamagesandcostswhicharelikelytoberecoveredbytheplaintiff,thelikelydefencecostsandyourprospectsofsuccessfullydefendingtheclaim.

62.2 AppointmentofSeniorCounsel

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

62.3 CostsofSeniorCounsel’sOpinion

ThecostofSeniorCounsel’sopinionisincludedinthedefencecosts.

62.4 Meaningof‘SeniorCounsel’

Forpurposesofthisclause,‘SeniorCounsel’meansapractisingbarristerwhoisentitledtopracticeasaQueensCounselorSeniorCounselinAustraliaorNewZealand.

63. ElectiontoContestIfwerecommendsettlementofanyclaimandyoudonotagreetosuchsettlement,youmayelecttocontesttheclaim.However,ourliabilityinconnectionwiththeclaimisthenlimitedtotheamountwerecommendinsettlementplusdefencecostsincurredwithourconsentuptothedatewerecommendsettlementtoyou.

64. Allocation64.1 General

Intheeventthereareanumberofcauseswhichcontributetoaclaimmadeagainstyou,weagreetoindemnifyyouinrespectofyourliabilityforthatpartoftheclaim,includingdefencecosts,whichiscoveredunderthepolicyirrespectiveofwhetheroneormoreoftheothercausesisexcludedunderthepolicy.

64.2 BestEfforts

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

64.3 Meaningof‘Expert’

‘Expert’shallmeananappropriatelyqualifiedindustryexpertnominatedbyus.


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Anyrecoveryreceivedshallfirstbeappliedagainstthecostsoftherecoveryproceeding,thenanypaymentmadebyusandthentoanybalanceremainingthereafterbeingremittedtoyouuptotheamountofanyuninsuredloss.

YoushallnotdoanythingwhichshallprejudiceourrightsunderthisCondition.

WeagreenottoexerciseanysuchrightsofrecoveryagainstanyofficeroremployeeunlessitisestablishedthatExclusion43‘FraudandDishonesty’appliestotheclaimandtheofficeroremployee.

Inoursolediscretion,wemay,inwriting,waiveanyofitsrightssetforthinthisCondition.

73. AlterationtoRisk

73.1 Youmustnotifyusassoonaspracticableofanymaterialalterationtoriskduringtheperiodofcoverincluding:

(a) ifyousubmittovoluntarybankruptcy,receivershiporliquidation;or

(b) ifyoufailtopaydebts;or

(c) ifyoubreachanyotherobligationgivingrisetotheappointmentofareceiver,bankruptcy,orwindingupproceedings;or

(d) anymaterialchangeinthenatureoftheprofessionalservices.

73.2 Wheresuchnoticeisgivenand/orwherethereisanymaterialalterationtotherisk,wereservetherighttocancelthispolicyinaccordancewiththeInsuranceContractsAct1984(Cth).

73.3 Notwithstanding73.2,intheeventthatyoushouldbecomebankruptorinsolvent,weshallnotberelievedtherebyofthepaymentofanyclaimhereundersolelyduetosuchbankruptcyorinsolvency.

69. GST

Theamountthatweareliabletopayunderthispolicywillbereducedbytheamountofanyinputtaxcreditthatyouareormaybeentitledtoclaimforthesupplyofgoodsorservicescoveredbythatpayment.

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

Ifyouareliabletopayadeductibleunderthispolicy,theamountpayablewillbecalculatedafterdeductionofanyinputtaxcreditthatyouareormaybeentitledtoclaimonpaymentofthedeductible.

70. 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.

71. ScopeandGoverningLaw

Anyissuerelatingtotheconstruction,validityoroperationofthispolicyshallbedeterminedinaccordancewiththelawsoftheCommonwealthofAustraliaandtheAustralianStateorTerritoryinwhichthepolicyisissued.Exceptasotherwiseprovidedherein,thepartiessubmittotheexclusivejurisdictionoftheAustraliancourts.

72. 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

theprofessionalservicesprovidedbyyouforafeeorotherremunerationinrespectoftheprofessionalbusinessasspecifiedintheschedule.

(q) publicrelationsexpensesmeans

allreasonablepaymentsincurredbyyouwithourpriorwrittenconsent(suchconsentnottobeunreasonablydelayedorwithheld)forpublicrelations,crisismanagementorlegalservicesreasonablyrequiredtopreventorminimiseadverseornegativepublicityasadirectresultofaclaimorinquirycoveredbythispolicy.

Itdoesnotmeanorinclude:

(i) responsecostsasdefinedunderOptionalExtension27“BreachofPrivacy:ResponseCostsandFinesandPenalties”;

(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.

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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(u) terrorismmeans

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

(v) we,us,ourmeans

AllianzAustraliaInsuranceLimited,ABN15000122850,AFSLicenceNo.234708.

(w) you,yourmeans

(i) theinsuredandanysubsidiarythereof;and

(ii) anyofficerbutonlywhenactingwithinthescopeoftheirdutiesintheperformanceofprofessionalservices(asdistinguishedfromcarryingoutdutiesasanofficeroftheinsuredinrelationtotheinsured’sownaffairs);or

(iii) anyemployeebutonlywhenactingwithinthescopeoftheirdutiesintheperformanceofprofessionalservices.


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POL7

96BA

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
