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Professional Indemnity Policy Construction ProjectsPolicy 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. InsurancePreparationCosts
9. CourtAttendance
10. DomesticPartners
11. EstatesandLegalRepresentatives
12. FormerSubsidiary,FormerPrincipalsetc
13. FraudandDishonesty
14. InquiryCosts
15. JointVentures
16. LossofDocuments
17. MitigationCosts
18. NewlyAcquiredorCreatedSubsidiaries
19. PublicRelationsExpenses
20. Imputation
21. PrincipalsIndemnity
Part3–OptionalExtensions
22. BreachofPrivacy:ResponseCostsandFinesandPenalties
23. FidelityInsurance
24. JointVentures
25.ContractualLiability
26 LimitationofLiability
27.WorkplaceStatutoryLiabilityInsurance
28.CollateralWarranties
29.ProportionateLiabilityWaiver
Part4–Exclusions30. Asbestos
31. AssociatedPersonsorEntities
32. ContractualLiability/GuaranteeorWarranty
33. FinesandPenalties
34. FraudandDishonesty
35. ObligationtoEmployees
36. RadioactivityandNuclearRisk
37. PriorClaims/Circumstances
38. RetroactiveDate
39. TradingDebts
40. USAJurisdiction
41. WarandTerrorism
42.CostsEstimates
43. Insolvency
44.InsuranceandFinancialAdvice
45.Manufacturing,ConstructionandPropertyDevelopment
46.PersonalInjuryandPropertyDamage
47.UseofProperty
Part5–ClaimsConditions48. Notification
49. Co-operation
50. Mitigation
51. OurConsent
52. DefenceandSettlement
53. Disputes
54. ElectiontoContest
55. Allocation
Part6–OtherConditions56. Assignment
57. ChangeofControl
58. Currency
59. GST
60. Plurals,HeadingsandTitles,Interpretation
61. ScopeandGoverningLaw
62. Subrogation
63. 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 2.1General
Weagreetopayanydefencecosts:
(a)thatweincur;or
(b)thatyouincurwithourwrittenconsent.
2.2 Advancementofdefencecosts
Wewilladvancedefencecostscoveredbythispolicypromptlyafterdetailedinvoicesforthosecostsarereceivedbyus.However,anydefencecoststhatareactuallypaidshallberepayabletousbyyouintheeventandtotheextentthatitisdeterminedunderthepolicythatyouwerenotentitledtoapaymentofdefencecosts.
Exclusion34‘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;
(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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Part2–AutomaticExtensions7. Consultants,Sub-ContractorsandAgents
Weagreetoindemnifyyouagainstcivilliabilityfordamagesandawardsofclaimants’costsinrespectofanyclaimfirstmadeagainstyouduringtheperiodofcover,arisingfromtheprovisionoforfailuretoprovideprofessionalservicesbyanyconsultant,sub-contractororagentforwhichyouarelegallyliable.
Wewillalsoindemnifyanysuchconsultant,subcontractororagent,providedthattherelevantact,errororomissiongivingrisetotheclaimoccurred:
(a) inthecourseoftheconductbytheconsultant,sub-contractororagentofyourprofessionalserviceswhilstactingforyouoronyourbehalf;and
(b) atthetimewhentheconsultant,sub-contractororagentwasunderyourdirectcontrolandsupervision.
8. InsurancePreparationCosts
Wewillpayupto$25,000intheaggregateduringtheperiodofcoverforreasonableprofessionalfeesandsuchotherexternalexpensesincurredbyyouinconnectionwiththepreparationofanyinsuranceinformationorsimilarmaterialatourrequestconcerningamatteryouhavenotifiedtousunderthispolicybutonlywherethatmatterisindemnifiedbyuscoveredunderthispolicy.
Thecoverprovidedunderthisextensionoperatesinadditiontothelimitofindemnityanyoneclaimanddoesnoterodetheaggregatelimitofindemnity.
9. CourtAttendance
Wewillpaytheinsured$500perpersonforeachdaythatanofficeroremployeeislegallycompelledtoanddoesattendcourttogiveevidenceinconnectionwithaclaim.ThedeductibledoesnotapplytothisExtension.
10. DomesticPartners
Thedefinitionofyouisextendedtoincludeanyspouseorcivilpartnerofanofficeroremployeeinrespectofaclaimarisingfromtheconductofsuchofficeroremployeeonlyandinwhichthespouseorpartnerhadnoinvolvementandisduesolelytothespouseorcivilpartner’sstatusassuch.
11. EstatesandLegalRepresentatives
Thedefinitionofyouisextendedtoincludeyourlegalrepresentatives,heirs,assignsorestatesintheeventofyourdeath,incapacity,insolvencyorbankruptcybutonlytotheextentthatwewouldotherwisehavebeenliabletoindemnifyyou.
12. FormerSubsidiary,FormerPrincipalsetc
12.1 Thedefinitionofsubsidiaryisextendedtoincludeanyformersubsidiary,butonlyinrespectoftheformersubsidiary’sconductwhileitwasstillyoursubsidiary.
12.2 Thedefinitionofyouisextendedtoincludeanyformerprincipal,officeroremployee,butonlyinrespectoftheirconductwhiletheywerestillyourprincipal,officeroremployee.
13. FraudandDishonesty
Weagreetoindemnifyyouagainstcivilliabilityarisingfromanyclaimthatisfirstmadeagainstyouduringtheperiodofcover,inrespectofanydishonest,fraudulent,maliciousorrecklessactoromissioncommittedorallegedtohavebeencommittedbyanyotherpersonorentitycoveredbythispolicyintheconductofyourprofessionalservices.
WewillnotprovideindemnityunderthisExtension:
(a) toanyinsuredpersonorentitycommittingorcondoningtheact,omissionorbreachthatwouldotherwisehaveresultedinExclusion34‘FraudandDishonesty’applying;
(b) foranylossofcurrency.
14. InquiryCosts
Weagreetoindemnifyyouforinquirycostsuptoanamountnotexceeding$500,000intheaggregatefortheperiodofcover,whichshallbepartofandnotinadditiontothelimitofindemnity.
15. JointVentures
Weagreetoindemnifyyouagainstcivilliabilityfordamagesandawardsofclaimants’costsarisingfromanyclaimfirstmadeagainstyouduringtheperiodofcover,inrespectoftheprovisionoforfailuretoprovideprofessionalservicesbyanyjointventureofwhichyouareapart,providedhoweverthat:
(a) thisExtensionshallindemnifyyouforyourindividualcivilliabilityinrespectofsuchjointventure,butnotforyourjointcivilliability;and
(b) weshallnotbeliabletopayacontributiontoanyinsurerofanyotherparticipantinsuchjointventure.
16. LossofDocuments
16.1 General
Weagreetoindemnifyyouagainstcostsandexpensesthatyouincurinreplacingorrestoringlostdocumentsforwhichyouarelegallyresponsiblewhereyoufirstdiscoverthelossduringtheperiodofcover.However,weareonlyliabletoindemnifyyouagainstthosecostsandexpensesforwhichyouprovideuswithbillsoraccountsthatareapprovedundersubclause16.3.
16.2 Yourobligationtonotifyus
Youmustnotifyusofthelossofdocumentsassoonaspracticableafteryoudiscoverthelossandinanyeventwithin30days.
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ThisExtensionwillonlyapplyinrespectofclaimsagainstthesubsidiaryarisingfromanact,errororomissionoccurringsubsequenttothedateofyouracquisitionorcreationofthesubsidiary.
ForthepurposesofthisExtension,thedefinitionofsubsidiaryisextendedtomeananyentitythatforthefirsttimeduringtheperiodofcover,theinsuredeitherdirectlyorindirectly:
(a) controlsthecompositionoftheboardofdirectors;
(b) controlsmorethanhalfofthevotingpower;or
(c) holdsmorethanhalfoftheissuedsharecapital.
ShouldtheinsuredrequirethepolicytobeextendedtoincludecoverforsubsidiarieswhichisnotautomaticallyprovidedbythisExtension,thentheinsuredshallprovideuswithanyadditionalinformationrequestedbyustopermitustoevaluatetheacceptabilityoftheadditionalexposure.Weshallhavetheright,butnottheobligation,tooffercoverfortheacquiredorcreatedsubsidiaryonsuchadditionalterms,conditions,exclusionsandadditionalpremiumaswemayrequire.
19. PublicRelationsExpensesWewillpaytoyouoronyourbehalfallpublicrelationsexpenses.
CoverunderthisExtensionshallnotexceed$50,000intheaggregatefortheperiodofcover.
20. ImputationWheremorethanonepersonorentityisinsuredunderthispolicy:
(a) failurebyaninsuredpersonorentitytocomplywiththedutyofdisclosureundertheInsuranceContractsAct1984(C’wealth);or
(b) misrepresentationbyaninsuredpersonorentitytousbeforethepolicycommences;or
(c) failurebyaninsuredpersonorentitytocomplywithanytermsorconditionsofthispolicy,
doesnotprejudicetherightofanyotherinsuredpersonorentitytoindemnityunderthispolicy.However,thisclauseonlyappliesif:
(i) theotherinsuredpersonorentityisinnocentof,andhasnoknowledgeof,suchconduct;and
(ii) assoonaspracticableafterbecomingawareoftheconduct,theynotifyusofallfactsrelatingtosuchconduct.
21. PrincipalsIndemnity
Weagreetoindemnifyanyprincipalwhereyouareobligatedbyvirtueofawrittencontractfortheprovisionofprofessionalservicestothatprincipaltoprovideinsuranceasisaffordedbythispolicy,foranyclaimfirstmadeduringtheperiodofcoveragainsttheprincipalforitscivilliabilityarisingvicariouslyfromyourperformanceofprofessionalservicesfortheprincipal.
16.3 Approvalofbillsoraccounts
Onceyouprovideuswithbillsoraccounts,wemayeither:
(a) indemnifyyou;or
(b)nominateacompetentpersontoreviewthebillsoraccounts.
Ifwenominateacompetentperson,youmustnotifyuswhetherornotyouapproveofournominee.
16.4 Deductible
Notwithstandingclause4,youdonothavetobearthedeductibleinrespectofcostsandexpensescoveredbythisclause.
16.5 Meaningof‘lostdocuments’
Forpurposesofthisclause,‘lostdocuments’meansdocumentsthathavebeendestroyed,damagedormislaidandcannotbefoundafterdiligentsearch.
17. MitigationCosts
17.1 Weagreetoindemnifyyouagainstmitigationcosts.
17.2 Weareonlyliabletoindemnifyyouunderclause17.1if:
(a) youwerefirstawareduringtheperiodofcoverofthefacts,circumstances,actsoromissionswhichhavegivenrisetothemitigationcosts(andwhichwouldhavegivenrisetoaclaimbutforthemitigationcosts);and
(b)wearenotifiedwithin15daysofyourdecisiontoincurmitigationcosts;and
(c) youestablishtoourreasonablesatisfactionthatthereisaprobabilitythat:
(i) aclaimwouldhavebeenmadeagainstyouandthatyouwouldhavebeenliableforthatclaimintheabsenceofyourcarryingoutthemitigationorrectificationthesubjectofthemitigationcosts;and
(ii) theamountofyourliabilityfortheclaimwouldhavebeengreaterthanthemitigationcosts.
17.3 Coverformitigationcostsshallnotexceed10%ofthelimitofindemnityanyoneclaim.
18. NewlyAcquiredorCreatedSubsidiaries
Weagreetoindemnifyanysubsidiarythatyouacquireorcreateduringtheperiodofcoveragainstcivilliabilityfordamagesandawardsofclaimants’costsarisingfromanyclaimfirstmadeagainstthesubsidiaryuptotheearlierof:
(i) sixty(60)daysaftersuchacquisitionorcreation;or
(ii) theexpiryoftheperiodofcover;
inrespectoftheprovisionoforfailuretoprovideprofessionalservices.
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TheindemnityprovidedbythisExtensionissubjecttothefollowing:
(a) indemnityisprovidedonlytotheextentrequiredbysuchcontractandsubjecttothetermsandconditionsofthispolicy;and
(b) iftheclaimhadbeenfirstmadeagainstyou,youwouldhavebeenentitledtoindemnityunderthispolicy;and
(c) weshallmaintaintheconductandcontrolofanyclaimforwhichtheprincipalseeksindemnityunderthispolicy;and
(d) theindemnitydoesnotapplytotheprincipal’sownacts,errorsoromissions.
ForthepurposesofthisExtension,‘principal’meanstheownerorproprietoroftheproject,providedthat:
(i) theprincipalhasnoinvolvementinthedesign,construction,managementorsupervisionoftheproject;and
(ii) youhaveenteredintoawrittenagreementtoprovideprofessionalservicestotheprincipal.
Part3–OptionalExtensions22. BreachofPrivacy:ResponseCostsandFinesandPenalties
22.1 Wewillpaythereasonableandnecessaryresponsecostsincurredbyyou,withourpriorconsent,tonotifyanyclient,thirdpartyorregulatorinaccordancewithyourlegalorregulatorydutiesasaresultofanyactual,allegedorsuspectedbreachofprivacyfirstdiscoveredbyyouandnotifiedtousduringtheperiodofcoverinrelationtopersonaldatacollectedduringtheprovisionofprofessionalservices,regardlessofwhetheraclaimhasbeenmadeagainstyou.
22.2 Forthepurposesofsubclause22.1,suchresponsecostsshallnotinclude:
(a) publicrelationsexpenses;
(b)wages,overtime,salariesorfeestoofficersoremployees;
(c) costtocomplywithanyinjunctiverelief.
22.3 NotwithstandingExclusion33‘FinesandPenalties’,wewillalsopayfinesandpenaltiespayablebyyouarisingfromsuchactual,allegedorsuspectedbreachofprivacyunderthe Privacy Act 1988 (Cth)amendmentstheretoorsimilarlegislation.
22.4 Forthepurposesofsubclause22.3,wewillnotbeliabletoindemnifyyouforanysuchfineorpenalty:
(a) forwhichwearelegallyprohibitedfromindemnifyingyouunderanylaw;
(b)basedupon,attributabletoorinconsequenceofanyrecklessnessoranywilful,intentionalordeliberatefailuretocomplywithanylawfulnoticeordirection,enforcementactionorproceedingunderanylegislation.
22.5 CoverunderthisExtensionshallnotexceed$100,000intheaggregatefortheperiodofcover.
23. FidelityInsurance
Wewillindemnifytheinsuredfordirectfinanciallossdiscoveredandnotifiedtousduringtheperiodofcoverresultingfromanydishonest,fraudulentormaliciousactofanyemployeeorofficer,whethercommittedaloneorincollusionwithothers.
OurliabilitytoindemnifyyouunderthisExtensionissubjecttothefollowing:
(a) wearenotliabletoindemnifyyouunderthisExtensionifyoupersonallycommittedorcondonedanyact,omissionorbreachexcludedbyExclusion34‘FraudandDishonesty’;
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Wewillnotbeliabletoindemnifyyouforanyfineorpenaltyforwhichwearelegallyprohibitedfromindemnifyingyouunderanylaw.
CoverunderthisExtensionshallnotexceed$250,000intheaggregatefortheperiodofcover.
28. CollateralWarranties
NotwithstandingExclusion32‘ContractualLiability/GuaranteeorWarranty’,weagreetoindemnifyyouagainstcivilliabilityfordamagesandawardsofclaimants’costsinrespectofanyclaimisfirstmadeagainstyouduringtheperiodofcoverinrespectofanycollateralwarrantiesorsimilaragreementsprovidedtousbyyou,andwherewehavespecificallyagreedinwritingtoindemnifyyouinrespectofsuchcollateralwarrantyorsimilaragreement.
Weareonlyliabletoindemnifyyoutotheextentthatthebenefitsofsuchwarrantiesoragreementsarenotgreaterorlongerlastingthanthosegiventothepartywithwhomyouoriginallycontractedtoprovideprofessionalservices,andonlytotheextentthatsuchliabilitywouldhaveattachedtoyouintheabsenceofsuchcontractualduty,termoragreement.
ForthepurposeofthisExtension,wearenotliabletoindemnifyyouinrespectofanyclaimdirectlyorindirectlybasedupon,attributableto,orinconsequenceofany:
(a) liabilityarisingfromtheprovisionbyyouofanexpresstermguaranteeingorwarrantingthefitnessforpurposeorsimilar;
(b) liabilityarisingunderanyexpressguaranteethattheworkswillsatisfyanyparticularperformancespecificationoranyexpressguaranteerelatingtotheperiodoftheproject;
(c) anyexpresscontractualpenaltyofafinancialnatureorliquidateddamages.
29. ProportionateLiabilityWaiver
WeagreethatExclusion32,‘ContractualLiability/GuaranteeorWarranty’doesnotapplytoliabilityassumedbyyouunderacontractbyreasonofhavingcontractedoutoftheoperationoftheProportionateLiabilityLegislation.
ForthepurposesofthisExtension,‘ProportionateLiabilityLegislation’meansCivilLiabilityAct2002(NSW)Pt4,WrongsAct1958(Vic)PtIVAA,CivilLiabilityAct2002(WA)Pt1F,CivilLiabilityAct2003(Qld)Pt2,CivilLaw(Wrongs)Act2002(ACT)Ch7A,ProportionateLiabilityAct2005(NT),CivilLiabilityAct2002(Tas)Part9A,LawReform(ContributoryNegligenceandApportionmentofLiability)Act2001(SA)Pt3,TradePracticesAct(Cth)s87C,DevelopmentAct1993(SA)s72,BuildingAct2004(ACT)s141andBuildingAct2000(Tas)s252,andanysimilarlegislationasamendedfromtimetotime.
(b) youmustbearanycostsorexpensesthatyouincurinestablishingorsubstantiatingtheexistenceoramountofthedirectfinancialloss;
(c) youmustbearanydirectfinanciallossthatyouincurasaconsequenceofanyactoromissionoccurringafterthedatethatyoudiscover,orhavereasonablesuspicionof,thedishonest,fraudulent,maliciousorrecklessactoromission;
(d) allinterrelatedindividualdishonest,fraudulentormaliciousactsshallbedeemedtoconstituteasinglelossunderthisExtension.
CoverunderthisExtensionshallnotexceedtheFidelityGuaranteelimitofindemnityspecifiedinthescheduleintheaggregateduringtheperiodofcover.TheFidelityGuaranteedeductiblespecifiedinthescheduleshallapplytoeachdirectfinanciallosscoveredunderthisExtension.
24. JointVentures
AutomaticExtension15‘JointVentures’shallbeextendedtoprovideindemnityforyourjointandindividualcivilliabilityarisingoutofanyclaimmadeagainstyouduringtheperiodofcover,butonlyinrespectofjointventure(s)namedintheschedule.
25. ContractualLiability
NotwithstandingExclusion32‘ContractualLiability/GuaranteeorWarranty’wewillindemnifyyouagainstcivilliabilityyouincurinrespectofaclaimunderanindemnityand/orholdharmlesstermofacontracttotheextentsuchcivilliabilityarisesoutofyourperformanceofprofessionalservices.
26. LimitationofLiability
NotwithstandingClause63,‘Subrogation’,werecognisethatyoumayenterintowrittencontractswithotherpartiesrelatingtotheperformanceofyourprofessionalservicesthatmayexcludeorlimittheliabilityofsuchpartiesandweagreethatsuchcontractswillnotprejudiceyourrighttoindemnityunderthispolicy.
ThecoverprovidedunderthisExtensiondoesnotapplytocontracts(whetherornottheyarewrittencontracts)enteredintoasaresultofadisputethatinvolvesyouinanyway.
27. WorkplaceStatutoryLiabilityInsurance
Notwithstandingthe‘Exclusion33‘FinesandPenalties’andExclusion35‘ObligationtoEmployees’,wewillpayonyourbehalfalldefencecostsandanyfinesandpenaltiesincurredinconnectionwithanyclaimfirstmadeagainstyouduringtheperiodofcoverforanyact,error,omissionorotherconductthatgivesrisetoanotifiableincidentunderworkhealthandsafetylegislationinAustralia,providedthattheconductgivingrisetotheclaimwasnotintentional,wilful,recklessordeliberate.
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Part4–ExclusionsThispolicyshallnotcoveranyclaimorcostorexpensearisingoutof,basedupon,attributabletoorinconsequenceof:
30. Asbestos
asbestosoranymaterialscontainingasbestos.
31. Associatedpersonsorentities
anyclaimmadebyoronbehalfof:
(a) anyinsuredpersonorentity;or
(b) anyparent,successororassignofanyinsuredpersonorentity,or
(c) anyentityinwhichaninsuredpersonorentityorthemanagementoftheinsuredorsubsidiaryhasanexecutiveorcontrollinginterest,or
(d) anyofficeroremployeeunlesssuchclaimismadebyoronbehalfofanofficeroremployeeasacustomerorclientofyours.
32. ContractualLiability/GuaranteeorWarranty
(a) anyliabilityassumedunderanycontractoragreement;or
(b) anyexpressorimpliedguaranteeorwarranty;
excepttotheextentsuchliabilitywouldhaveattachedtoyouintheabsenceofsuchcontractoragreement.
33. FinesandPenalties
punitive,aggravated,multipleorexemplarydamages,orfinesorpenaltiesimposedbylaw.
Thisexclusionshallnotapplytocompensatorycivilpenalties,providedthat:
(a) ourtotalliabilityforthepaymentofcompensatorycivilpenaltiesduringanyoneperiodofcovershallnotexceed$250,000intheaggregate,whichamountshallformpartofandisnotinadditiontothelimitofindemnity;
(b) wewillnotbeliabletoindemnifyyouforanycompensatorycivilpenaltyforwhichwearelegallyprohibitedfromindemnifyingyouunderanylaw;
(c) wewillnotbeliabletoindemnifyyouforanycompensatorycivilpenaltybasedupon,attributabletoorinconsequenceofany:
(i) wilful,intentionalordeliberatefailuretocomplywithanylawfulnoticeordirection,enforcementactionorproceedingunderanylegislation;
(ii) recklessness;
(iii) requirementtopaytaxes,rates,duties,levies,charges,feesoranyotherrevenueorimpost.
34. FraudandDishonesty
(a) thegainingoforintentionalattempttogainprofit,remunerationoradvantagetowhichyouwerenotlegallyentitled;or
(b) dishonest,fraudulent,malicious,wilfulorcriminalactoromissionbyyouoryourconsultants,sub-contractorsoragents;
intheeventthatanyoftheaboveisestablishedbyfinaladjudicationofajudicialorarbitraltribunalorbyyourwrittenadmission.
35. ObligationtoEmployees
bodilyinjury,mentalinjury,sickness,diseaseordeathofanyemployeeordamagetoordestructionofanypropertyofanemployee,includinglossofuse,arisingoutoforinthecourseoftheiremployment.
36. RadioactivityandNuclearRisk
ionisingradiationorthecontaminationbyradioactivityfromanynuclearfuelorfromanynuclearwastefromthecombustionofanynuclearfuel.
37. PriorClaims/Circumstances
(a) disclosuretousinthesubmission,ofanyclaim,inquiry,investigation,conduct,factormatterregardlessofhowitisexpressed;or
(b) factsorconductwhichhaveorhasbeennotifiedunderanyearlierpolicy;or
(c) factsorconductwhichyouknew,oroughtreasonablytohaveknown,priortothecommencementofthispolicymightgiverisetoaclaimorinquiry;or
(d) anyproceeding,inquiryorsimilarprocessonfootatthecommencementofthispolicy,oranyproceeding,inquiryorsimilarprocessderivedfromessentiallythesamefactsasinsuchproceeding,inquiryorprocess.
38. RetroactiveDate
anycivilliability,act,errororomissionorotherconductwhichfirstoccursbeforetheretroactivedatespecifiedintheschedule.
39. TradingDebts
anytradingdebtthatyouincuroranyguaranteethatyougiveforadebt.
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(c) supervisionofanyconstruction,assembly,installation,erectionormaintenanceunlesssuchsupervisionisprovidedasaspecificallycontractedconstructionmanagerorprojectmanager(butnotincludingsupervisionaswouldbeundertakeninacapacitynormallyprovidedbyabuildingorengineeringcontractoractinginsuchcapacityalone);or
(d) youractivitiesasapropertydeveloper.
46. PersonalInjuryandPropertyDamage
(a) bodilyinjury,sickness,disease,mentalinjury,mentalanguish,nervousshock,emotionaldistressordeathofanyperson;or
(b) physicallossof,damageto,ordestructionofanytangiblepropertyincludinganylossofuseoftangibleproperty;
unlessdirectlyarisingoutofyourprovisionoforfailuretoprovideprofessionalservices.
47. UseofProperty
theownership,use,occupationorleasingofanypropertybyyou,tooronyourbehalf.
40. USAJurisdiction(a) anyclaimmadeinordeterminedpursuanttothelaw
oftheUnitedStatesofAmericaoranyofitsterritoriesorprotectorates,oranyinquiryconductedintheUnitedStatesofAmericaoranyofitsterritoriesorprotectorates;or
(b) theenforcementofjudgments,ordersorawardsobtainedwithinordeterminedpursuanttothelawoftheUnitedStatesofAmericaoranyofitsterritoriesorprotectorates.
41. WarandTerrorismwar(declaredorotherwise),terrorism,warlike,military,terroristorguerrillaactivity,sabotage,forceofarms,hostilities(declaredorundeclared),rebellion,revolution,civildisorder,insurrection,usurpedpower,confiscation,nationalisationordestructionofordamagetopropertybyorundertheorderof,anygovernmental,publicorlocalauthorityoranyotherpoliticalorterroristorganisation.
42. CostsEstimatesanyestimateofconstructioncostorcostestimatebeingexceededexceptwheresuchestimatesarecompiledbyaregisteredquantitysurveyororotherappropriatelyqualifiedprofessional.
43. Insolvencytheinsolvency,liquidation,administrationorreceivershipofyouoranypartyinvolvedinanyprojectorcontract.
44. InsuranceandFinancialAdvice(a) anyfailuretoeffectormaintaininsurance,
suretyorbond;or
(b) adviceoninsurance;or
(c) adviceoninvestment,marketing,financialortaxmatters;or
(d) theprovisionoffinance.
45. Manufacturing,ConstructionandPropertyDevelopment(a) defectsorallegeddefectsinanyproduct
manufactured,supplied,installed,assembled,erectedormaintainedbyyouexcepttotheextentthatsuchdefectsareattributabletoyourfaultydesignorspecification;or
(b) anyconstruction,assembly,installation,erectionormaintenanceotherthanwhereaclaimisattributabletoyourfaultydesignorspecification;or
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Part5–ClaimsConditions48. Notification
Theinsuredshallgivewrittennoticetousofanyclaimfirstmadeagainstyouorinquiryduringtheperiodofcoverordirectfinanciallossdiscoveredassoonasreasonablypracticablefollowingfirstawarenessofsuchclaim,inquiryordirectfinancialloss.
Allnotificationsmustbeinwritingto:
ClaimsManager–FinancialLines
AllianzAustraliaInsuranceLimited
2MarketStreet,SydneyNSW2000,Australia
Ifposted,thedateofpostingshallconstitutethedatethatnoticewasgiven,andproofofpostingshallbesufficientproofofnotice.
Noticeofanyclaimorinquirymustincludefullparticulars,includingbutnotlimitedto:
(i) fulldetailsofsuchclaimorinquiry,
(ii) thepartiesinvolved,and
(iii) acopyofanydocumentcommencingproceedings,oranywrittennoticeofanyinquiry.
Wemustbeadvised,withinareasonabletimeofanynotification,ofanyotherinsurancepolicywhichmayapplytoanyclaimorinquirycoveredunderthispolicy.
49. Co-operation
Youmustatyourowncost:
(i) renderallreasonableassistancetousandco-operateinthedefenceofanyclaimorinquiryandtheassertionofindemnificationandcontributionrights;
(ii) givesuchinformationandassistancetousaswemayreasonablyrequiretoenableittoinvestigateanyclaimorinquiryordetermineourliabilityunderthispolicy.
50. Mitigation
Youmustuseallduediligenceanddoandconcurindoingallthingsreasonablypracticabletoavoidordiminishanycivilliability,defencecostsoranyothercostsorlossinrespectofwhichweareliabletoindemnifyyouunderthispolicy.
51. OurConsent
Youshallnotadmitorassumeanyliability,enterintoanysettlementagreementorconsenttoanyjudgmentinrelationtoanyclaimorinquirywithoutourpriorwrittenconsent.
52. DefenceandSettlement
Wedonotassumeanydutytodefend,andyoushalldefendandcontestanyclaimmadeagainstyouunlessweelectinwritingtotakeoverandconductthedefenceandsettlementofanyclaim.Ifwedonotsoelect,weshallbeentitled,butnotrequired,toparticipatefullyinsuchdefenceandthenegotiationofanysettlement.
IfthereisanydisputebetweenusandyouaboutwhethertoagreetoaproposedsettlementoraboutwhetheraclaimshouldcontinuetobedefendedthedisputeshallbedealtwithinaccordancewithCondition53‘Disputes’.
53. Disputes
53.1 General
NeitherwenoryoumayrequiretheothertocontestanyclaimunlessSeniorCounseladvisesthattheclaimshouldbecontested.
Informulatinghisorheradvice,SeniorCounselmusttakeintoconsiderationthedamagesandcostswhicharelikelytoberecoveredbytheplaintiff,thelikelydefencecostsandyourprospectsofsuccessfullydefendingtheclaim.
53.2 AppointmentofSeniorCounsel
Ifaclaimismadeagainstyou,wemaynominateaSeniorCounsel.IfwenominateaSeniorCounsel,youmustnotifyuswhetherornotyouapproveofournomineeassoonaspracticable.IfwecannotagreewithyouuponSeniorCounselwithinareasonabletime,SeniorCounselwillbesuchpersonasthePresidentoftheNewSouthWalesBarAssociationappoints.
53.3 CostsofSeniorCounsel’sOpinion
ThecostofSeniorCounsel’sopinionisincludedinthedefencecosts.
53.4 Meaningof‘SeniorCounsel’
Forpurposesofthisclause,‘SeniorCounsel’meansapractisingbarristerwhoisentitledtopracticeasaQueensCounselorSeniorCounselinAustraliaorNewZealand.
54. ElectiontoContest
Ifwerecommendsettlementofanyclaimandyoudonotagreetosuchsettlement,youmayelecttocontesttheclaim.However,ourliabilityinconnectionwiththeclaimisthenlimitedtotheamountwerecommendinsettlementplusdefencecostsincurredwithourconsentuptothedatewerecommendsettlementtoyou.
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Part6–OtherConditions56. Assignment
Thispolicyandanyrightsunderorinrespectofitcannotbeassignedbyyouwithoutourpriorwrittenconsent.
57. ChangeofControl
Weshallnotbeliabletomakeanypaymentortoprovideanyservicesinconnectionwithanyclaimorinquiryarisingoutof,baseduponorattributabletoanycivilliability,act,errororomissionorotherconductcommittedaftertheoccurrenceofamerger,takeover,saleorwindingup.
58. Currency
AllmonetaryamountsunderthispolicyareexpressedandpayableinAustraliancurrency.Ifjudgementisrendered,settlementisdenominatedorotheramountpayableunderthispolicyisstatedinacurrencyotherthanAustraliandollars,paymentunderthispolicyshallbemadeinAustraliandollarsatthecashrateofexchangeforthepurchaseofAustraliandollarsdeterminedbythefreemarketrateofexchangeaspublishedinthecurrencyconversionwebsitewww.oanda.com,orifnolongercurrent,acurrencyconversionwebsiteselectedbyusonthedatethefinaljudgementisreachedortheamountofthesettlementisagreedupon.
59. GST
IfyouareregisteredforGSTyouarerequiredtotellusofanyentitlementtoaninputtaxcreditforthispolicy.Ifyoufailtodiscloseorunderstatesuchentitlement,youmaybeliableforGSTonanyamountwemaypay.ThispolicydoesnotcoveryouforthisGSTliabilityorforanyfine,penaltyorchargethatyoumaybeliableforduetoafailuretodiscloseamisstatementmadeinrelationtoanyentitlementtoaninputtaxcreditforthepremium.
60. Plurals,HeadingsandTitles,Interpretation
Wordsandexpressionsinthesingularshallincludetheplural,andviceversa.Also,whereatermofthispolicyisnotspecificallydefined,itisagreedthatthedefinitionnormallyattributedtoitbyanyapplicablelaworbusinesspracticeshallapply.
Thispolicy,itsscheduleandanyendorsementsareonecontractinwhich,unlessthecontextotherwiserequires:
(i) headingsaredescriptiveonly,notanaidtoconstruction;
(ii) singularincludestheplural,andviceversa;
(iii) themaleincludesthefemaleandneuter;
(iv) allreferencestospecificlegislationincludeamendmentstoandre-enactmentsofsuchlegislation;and
55. Allocation
(i) General
Intheeventthereareanumberofcauseswhichcontributetoaclaimmadeagainstyou,weagreetoindemnifyyouinrespectofyourliabilityforthatpartoftheclaim,includingdefencecosts,whichiscoveredunderthepolicyirrespectiveofwhetheroneormoreoftheothercausesisexcludedunderthepolicy.
(ii) BestEfforts
Bothpartieswillusetheirbesteffortstoagreeuponwhatisattributabletoindemnifiedandexcludedcauses.IntheeventthatanagreementcannotbereachedanExpertshalldetermine,asanExpertbutnotanarbitrator,thecausesofthelossandthepercentageattributabletoeachcause.UntilsuchExperthasmadehisorherdetermination,wemay,atourabsolutediscretion,paysuchamountinsuredunderthisConditionasweconsiderappropriate.
(iii) Meaningof‘Expert’
‘Expert’shallmeananappropriatelyqualifiedindustryexpertnominatedbyus.
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(v) referencestopositions,officesortitlesshallincludetheirequivalentsinanyjurisdictioninwhichacoveredclaimismadeorcoveredinquiryconducted.
61. ScopeandGoverningLaw
Anyissuerelatingtotheconstruction,validityoroperationofthispolicyshallbedeterminedinaccordancewiththelawsoftheCommonwealthofAustraliaandtheAustralianStateorTerritoryinwhichthepolicyisissued.Exceptasotherwiseprovidedherein,thepartiessubmittotheexclusivejurisdictionoftheAustraliancourts.
62. Subrogation
Unlessotherwisestatedinthepolicy,intheeventofanypaymentunderthispolicy,weshallbesubrogatedtoallofyourrightsofrecoveryinrespectofsuchpayment.Inaddition,youshallexecuteallandanydocumentationanddoanyotherthings,atyourowncost,asmaybenecessarytoenableustobringanactionorsuitforsuchrecovery.Anyrecoveryreceivedshallfirstbeappliedagainstthecostsoftherecoveryproceeding,thenanypaymentmadebyusandthentoanybalanceremainingthereafterbeingremittedtoyouuptotheamountofanyuninsuredloss.
YoushallnotdoanythingwhichshallprejudiceourrightsunderthisCondition.
WeagreenottoexerciseanysuchrightsofrecoveryagainstanyofficeroremployeeunlessitisestablishedthatExclusion34‘FraudandDishonesty’appliestotheclaimandtheofficeroremployee.
Inoursolediscretion,wemay,inwriting,waiveanyofitsrightssetforthinthisCondition.
63. AlterationtoRisk
(i) Youmustnotifyusassoonaspracticableofanymaterialalterationtoriskduringtheperiodofcoverincluding:
(a) ifyousubmittovoluntarybankruptcy,receivershiporliquidation;or
(b) ifyoufailtopaydebts;or
(c) ifyoubreachanyotherobligationgivingrisetotheappointmentofareceiver,bankruptcy,orwindingupproceedings;or
(d) anymaterialchangeinthenatureoftheprofessionalservices.
(ii) Wheresuchnoticeisgivenand/orwherethereisanymaterialalterationtotherisk,wereservetherighttocancelthispolicyinaccordancewiththeInsuranceContractsAct1984(Cth).
(iii) Notwithstanding64(ii),intheeventthatyoushouldbecomebankruptorinsolvent,weshallnotberelievedtherebyofthepaymentofanyclaimhereundersolelyduetosuchbankruptcyorinsolvency.
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;
(vi) anyfinanciallosssustained,whilstinthecare,custodycontrolofanyfinancialinstitutionorarmouredsecuritycompany;
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(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
(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.
However,inquirydoesnotinclude:
(iv) anyof(i),(ii)or(iii)abovethatrelatestoanindustryeventorpracticeandnotspecificallytoyourconductprovidingprofessionalservices;
(v) routineregulatorysupervision,inspectionorcompliancereviews;
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(q) projectmeans
theproject/contractundertakenbytheinsured,specifiedastheProjectintheschedule.
(r) publicrelationsexpensesmeans
allreasonablepaymentsincurredbyyouwithourpriorwrittenconsent(suchconsentnottobeunreasonablydelayedorwithheld)forpublicrelations,crisismanagementorlegalservicesreasonablyrequiredtopreventorminimiseadverseornegativepublicityasadirectresultofaclaimorinquirycoveredbythispolicy.
Itdoesnotmeanorinclude:
(i) responsecostsasdefinedunderOptionalExtension22‘BreachofPrivacy:ResponseCostsandFinesandPenalties’;
(ii) youroverheads,staffremunerationormanagementtime;
(iii) compensationorotherpaymentsmadetocustomers,clientsorpotentialclaimants;
(iv) finesorpenalties;or
(v) thecostsandexpensesofcomplyingwithanyorderfor,grantoforagreementtoprovideinjunctiveorothernon-monetaryrelief.
(s) schedulemeans
theschedulerelatingtoandformingpartofthispolicy,includinganyendorsementsthereto.
(t) submissionmeans
eachandeveryproposalform,thestatements,andrepresentationstherein,itsattachmentsandallothermaterialinformationsubmittedtousinrespectofthispolicy.
(u) subsidiarymeans
anyentityatthecommencementoftheperiodofcoverthattheinsuredeitherdirectlyorindirectly:
(i) controlsthecompositionoftheboardofdirectors;
(ii) controlsmorethanhalfofthevotingpower;or
(iii) holdsmorethanhalfoftheissuedsharecapital.
(v) terrorismmeans
anact,includingbutnotlimitedtotheuseofforceorviolenceand/orthethreatthereof,ofanypersonorgroup(s)ofpersonswhetheractingaloneoronbehalfoforinconnectionwithanyorganisation(s)orgovernment(s),committedforpolitical,religious,ideologicalorsimilarpurposesincludingtheintentiontoinfluenceanygovernmentand/ortoputthepublicoranysectionofthepublicinfear.
(c) inaccordancewithwhoseinstructionsorwishesthedirectorsoftheinsuredorsubsidiaryareaccustomedtoact(excludingadvicegivenbythepersonintheproperperformanceoffunctionsattachingtotheperson’sprofessionalcapacityortheirbusinessrelationshipwiththedirectorsortheinsuredorsubsidiary).
(o) periodofcovermeans
theperiodoftimespecifiedassuchintheschedule.
(p) professionalservicesmeans
professionalworkperformedontheprojectinvolvingoneormoreofthefollowingactivities:
(i) design,includingpre-designandadviceinrelationtodesign;
(ii) drafting,drawingsandtechnicaldocumentation;
(iii) technicaladvice;
(iv) technicalspecification;
(v) technicalinformationcalculation;
(vi) feasibilitystudies;
(vii)surveying;
(viii)provisionofinspectionservices;
(ix) programmingandtimeflowmanagement;
(x) traininginrespectofanyoftheaboveactivities;
(xi) projectmanagement;
(xii)constructionmanagement;
inrespectoftheprofessionalbusinessspecifiedintheschedule,wheresuchprofessionalworkiscarriedoutbyorunderthecontrolofaproperlyqualifiedarchitect,engineer,surveyororappropriateprofessionalperson,whetheryouremployeeorapersonactingunderyourcontrolorundercontractwithyou.
Professionalservicesdonotinclude:
(a) performanceorsupervisionofanyconstruction,assembly,installation,erectionormaintenanceaswouldbeundertakeninacapacitynormallyprovidedbyabuildingorconstructionormaintenancecontractoractinginsuchcapacityalone;
(b)environmentalprotection,workplacehealthandsafetyorindustrialrelationsmatterswhichwouldnormallybeoverseenbyabuildingorconstructionormaintenancecontractor.
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(w) we,us,ourmeans
AllianzAustraliaInsuranceLimited,ABN15000122850,AFSLicenceNo.234708.
(x) you,yourmeans
(i) theinsuredandanysubsidiarythereof;and
(ii) anyofficerbutonlywhenactingwithinthescopeoftheirdutiesintheperformanceofprofessionalservices(asdistinguishedfromcarryingoutdutiesasanofficeroftheinsuredinrelationtotheinsured’sownaffairs);or
(iii) anyemployeebutonlywhenactingwithinthescopeoftheirdutiesintheperformanceofprofessionalservices.
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11BA
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Contact: [email protected]
Allianz Australia Insurance Limited (Allianz)ABN 15 000 122 850AFS Licence No. 2347082 Market Street Sydney NSW 2000 Telephone: 13 2664
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