Professional Indemnity Policy Projuris PlusPolicy 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
Part3–OptionalExtensions
24. BreachofPrivacy:ResponseCostsandFinesandPenalties
25. FidelityInsurance
26. Subsidiaries–Pre-AcquisitionLiability
27. JointVentures
28. PreviousBusiness
29.Run-offafterMerger,TakeoverorSale
30.IncomingContinuousCover
Part4–Exclusions
31. Asbestos
32. AssociatedPersonsorEntities
33. ContractualLiability/GuaranteeorWarranty
34. FinesandPenalties
35. FraudandDishonesty
36. Insolvency
37. ObligationtoEmployees
38. RadioactivityandNuclearRisk
39. PriorClaims/Circumstances
40. RetroactiveDate
41. TradingDebts
42. USAJurisdiction
43. WarandTerrorism
Part5–ClaimsConditions
44. Notification
45. Co-operation
46. Mitigation
47. OurConsent
48. DefenceandSettlement
49. Disputes
50. ElectiontoContest
51. Allocation
Part6–OtherConditions
52. Assignment
53. Cancellation
54. ChangeofControl
55. Currency
56. GST
57. Plurals,HeadingsandTitles,Interpretation
58. ScopeandGoverningLaw
59. Subrogation
60. 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.
Exclusion35‘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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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) butfortheExclusion39‘PriorClaims/Circumstances’youwouldbeentitledtoindemnityunderthispolicy;and
(d) youhavenotcommittedorattemptedtocommitfraudulentnon-disclosureorfraudulentmisrepresentation.
Weareonlyliabletoindemnifyyoutotheextentthatweareobligedtoindemnifyyouunderthetermsandconditionsofthepolicyineffectduringthepreviouspolicyperiod,butinnocircumstancesshallthecovergrantedbythisExtensionbegreaterthanthetermsandconditionsofthepolicyineffectduringthisperiodofcover(includingthelimitofindemnityanddeductible).
9. InsurancePreparationCosts
Wewillpayupto$25,000intheaggregateduringtheperiodofcoverforreasonableprofessionalfeesandsuchotherexternalexpensesincurredbyyouinconnectionwiththepreparationofanyinsuranceinformationorsimilarmaterialatourrequestconcerningamatteryouhavenotifiedtousunderthispolicybutonlywherethatmatterisindemnifiedbyusunderthispolicy.
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.
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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:
14. FormerSubsidiary,FormerPrincipals,etc
14.1 Thedefinitionofsubsidiaryisextendedtoincludeanyformersubsidiary,butonlyinrespectoftheformersubsidiary’sconductwhileitwasstillyoursubsidiary.
14.2 Thedefinitionofyouisextendedtoincludeanyformerprincipal,officeroremployee,butonlyinrespectoftheirconductwhiletheywerestillyourprincipal,officeroremployee.
15. FraudandDishonesty
Weagreetoindemnifyyouagainstcivilliabilityarisingfromanyclaimthatisfirstmadeagainstyouduringtheperiodofcover,inrespectofanydishonest,fraudulent,maliciousorrecklessactoromissioncommittedorallegedtohavebeencommittedbyanyotherpersonorentitycoveredbythispolicyintheconductofyourprofessionalservices.
WewillnotprovideindemnityunderthisExtension:
(a) toanyinsuredpersonorentitycommittingorcondoningtheact,omissionorbreachthatwouldotherwisehaveresultedinExclusion35‘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.
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(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
(c) failurebyaninsuredpersonorentitytocomplywithanytermsorconditionsofthispolicy,
doesnotprejudicetherightofanyotherinsuredpersonorentitytoindemnityunderthispolicy.However,thisclauseonlyappliesif:
(i) theotherinsuredpersonorentityisinnocentof,andhasnoknowledgeof,suchconduct;and
(ii) assoonaspracticableafterbecomingawareoftheconduct,theynotifyusofallfactsrelatingtosuchconduct.
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(c) youmustbearanydirectfinanciallossthatyouincurasaconsequenceofanyactoromissionoccurringafterthedatethatyoudiscover,orhavereasonablesuspicionof,thedishonest,fraudulent,maliciousorrecklessactoromission;
(d) allinterrelatedindividualdishonest,fraudulentormaliciousactsshallbedeemedtoconstituteasinglelossunderthisExtension.
CoverunderthisExtensionshallnotexceedtheFidelityGuaranteelimitofindemnityspecifiedinthescheduleintheaggregateduringtheperiodofcover.TheFidelityGuaranteedeductiblespecifiedinthescheduleshallapplytoeachdirectfinanciallosscoveredunderthisExtension.
26. Subsidiaries–Pre-AcquisitionLiability
Weagreetoindemnifyasubsidiaryagainstallcivilliabilityfordamagesandawardsofclaimantscostsarisingfromanyclaimthatisfirstmadeagainstthesubsidiaryduringtheperiodofcoverandisnotifiedtousduringtheperiodofcoverinrespectofanyact,errororomissioncommittedorallegedtohavebeencommittedbythesubsidiarybeforethedatethatyouacquiredthesubsidiarybutaftertheretroactivedatespecifiedinthescheduleinrespectofitsconductofthesameprofessionasyourprofessionalservices.
27. JointVentures
AutomaticExtension17‘JointVentures’shallbeextendedtoprovideindemnityforyourjointandindividualcivilliabilityarisingoutofanyclaimmadeagainstyouduringtheperiodofcover,butonlyinrespectofjointventure(s)namedintheschedule.
28. PreviousBusiness
Wherespecificallyagreedbyusbyendorsementtothispolicy,wewillextendindemnityforanyclaimmadeduringtheperiodofcoveragainstsuchpersonwhoisorbecomesaprincipal,orofficerofyoursinrespectofcivilliabilityfordamagesandawardsofclaimants’costsincurredorallegedtohavebeenincurredonthepartofsuchpersonintheconductofthesameprofessionasyourprofessionalbusinessbeforethatpersonjoinedyou.
29. Run-OffafterMerger,TakeoverorSale
Intheeventoftheinsuredbeingsubjecttoamerger,takeoverorsaleduringtheperiodofcover,thenonapplicationbytheinsurednolaterthan30daysafterthemerger,takeoverorsaleiscompletedorbecomeseffective,wemayextendcovertoapplyinrespectofclaimsfirstmadeagainstyou,orinquiriesfirstcommencedandinvolvingyou,foraperiodofupto84calendarmonthsfromtheexpirydateoftheperiodofcoverbutonlyforclaimsthatarisefromacts,errors,omissionsorotherconductoccurringpriortothedateofsuchmerger,takeoverorsale.
Part3–OptionalExtensions24. BreachofPrivacy:ResponseCostsandFinesandPenalties
24.1 Wewillpaythereasonableandnecessaryresponsecostsincurredbyyou,withourpriorconsent,tonotifyanyclient,thirdpartyorregulatorinaccordancewithyourlegalorregulatorydutiesasaresultofanyactual,allegedorsuspectedbreachofprivacyfirstdiscoveredbyyouandnotifiedtousduringtheperiodofcoverinrelationtopersonaldatacollectedduringtheprovisionofprofessionalservices,regardlessofwhetheraclaimhasbeenmadeagainstyou.
24.2 Forthepurposesofsubclause24.1,suchresponsecostsshallnotinclude:
(a) publicrelationsexpenses;
(b)wages,overtime,salariesorfeestoofficersoremployees;
(c) costtocomplywithanyinjunctiverelief.
24.3 NotwithstandingExclusion34‘FinesandPenalties’,wewillalsopayfinesandpenaltiespayablebyyouarisingfromsuchactual,allegedorsuspectedbreachofprivacyunderthePrivacy Act 1988 (Cth)amendmentstheretoorsimilarlegislation.
24.4 Forthepurposesofsubclause24.3,wewillnotbeliabletoindemnifyyouforanysuchfineorpenalty:
(a) forwhichwearelegallyprohibitedfromindemnifyingyouunderanylaw;
(b)basedupon,attributabletoorinconsequenceofanyrecklessnessoranywilful,intentionalordeliberatefailuretocomplywithanylawfulnoticeordirection,enforcementactionorproceedingunderanylegislation.
24.5 CoverunderthisExtension24shallnotexceed$100,000intheaggregatefortheperiodofcover.
25. FidelityInsurance
Wewillindemnifytheinsuredfordirectfinanciallossdiscoveredandnotifiedtousduringtheperiodofcoverresultingfromanydishonest,fraudulentormaliciousactofanyemployeeorofficer,whethercommittedaloneorincollusionwithothers.
OurliabilitytoindemnifyyouunderthisExtensionissubjecttothefollowing:
(a) wearenotliabletoindemnifyyouunderthisExtensionifyoupersonallycommittedorcondonedanyact,omissionorbreachexcludedbyExclusion35‘FraudandDishonesty’;
(b) youmustbearanycostsorexpensesthatyouincurinestablishingorsubstantiatingtheexistenceoramountofthedirectfinancialloss;
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ThisExtensionisonlyavailableiftheinsuredacceptstheadditionalterms,conditions,exclusionsorpremiumaswemayrequire.
Ifcoverissoextended,Extension20‘NewlyAcquiredorCreatedSubsidiaries’,andExtension12‘ExtendedNotificationPeriod’aredeletedfromthispolicyfromtheeffectivedateofsuchmerger,takeoverorsale.
30. IncomingContinuousCover
Weagreetoindemnifyyouagainstcivilliabilityarisingfromanyclaimthatarisesoutoffactswhichfirstbecameknowntoyoupriortotheperiodofcoverwhere:
(a) youheldprofessionalindemnityinsuranceatthetimethefactsfirstbecameknowntoyou(the“previouspolicyperiod”);and
(b) butforyourfailuretonotifyyourpreviousprofessionalindemnityinsurerofthefactsduringthepreviouspolicyperiod,youwouldhavebeenentitledtoindemnityunderapreviouspolicy;and
(c) butfortheExclusion39‘PriorClaims/Circumstances’youwouldbeentitledtoindemnityunderthispolicy;and
(d) youhavenotcommittedorattemptedtocommitfraudulentnon-disclosureorfraudulentmisrepresentation.
Weareonlyliabletoindemnifyyoutotheextentthatweareobligedtoindemnifyyouunderthetermsandconditionsofthispolicy,butinnocircumstancesshallthecovergrantedbythisExtensionbegreaterthanthetermsandconditionsofthepolicyineffectduringthe“previouspolicyperiod”(includingthelimitofindemnityanddeductible).
Wemayreduceourliabilitytoyoubytheamountthatfairlyrepresentstheextenttowhichwehavebeenprejudicedasaresultofthelatenotification.ForthepurposesofthisExtension,prejudicewillincludelostopportunitiestoresolvetheclaimanddifficultiesorincreasedcostsincurredindefendingaclaimduetothedelayinnotification.
Part4–ExclusionsWeshallhavenoliabilityunderthispolicy,includinginrespectofanyclaimorcostorexpenseorindemnityorpaymentorloss,arisingoutof,basedupon,attributabletoorinconsequenceof:
31. Asbestos
asbestosoranymaterialscontainingasbestos.
32. Associatedpersonsorentitiesanyclaimmadebyoronbehalfof:
(a) anyinsuredpersonorentity;or
(b) anyparent,successororassignofanyinsuredpersonorentity,or
(c) anyentityinwhichaninsuredpersonorentityorthemanagementoftheinsuredorsubsidiaryhasanexecutiveorcontrollinginterest,or
(d) anyofficeroremployeeunlesssuchclaimismadebyoronbehalfofanofficeroremployeeasacustomerorclientofyours.
33. ContractualLiability/GuaranteeorWarranty
(a) anyliabilityassumedunderanycontractoragreement;or
(b) anyexpressorimpliedguaranteeorwarranty;
excepttotheextentsuchliabilitywouldhaveattachedtoyouintheabsenceofsuchcontractoragreement.
34. FinesandPenalties
punitive,aggravated,multipleorexemplarydamages,orfinesorpenaltiesimposedbylaw.
Thisexclusionshallnotapplytocompensatorycivilpenalties,providedthat:
(a) ourtotalliabilityforthepaymentofcompensatorycivilpenaltiesduringanyoneperiodofcovershallnotexceed$250,000intheaggregate,whichamountshallformpartofandisnotinadditiontothelimitofindemnity;
(b) wewillnotbeliabletoindemnifyyouforanycompensatorycivilpenaltyforwhichwearelegallyprohibitedfromindemnifyingyouunderanylaw;
(c) wewillnotbeliabletoindemnifyyouforanycompensatorycivilpenaltybasedupon,attributabletoorinconsequenceofany:
(i) wilful,intentionalordeliberatefailuretocomplywithanylawfulnoticeordirection,enforcementactionorproceedingunderanylegislation;
(ii) recklessness;
(iii) requirementtopaytaxes,rates,duties,levies,charges,feesoranyotherrevenueorimpost.
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42. USAJurisdiction
(a) anyclaimmadeinordeterminedpursuanttothelawoftheUnitedStatesofAmericaoranyofitsterritoriesorprotectorates,oranyinquiryconductedintheUnitedStatesofAmericaoranyofitsterritoriesorprotectorates;or
(b) theenforcementofjudgments,ordersorawardsobtainedwithinordeterminedpursuanttothelawoftheUnitedStatesofAmericaoranyofitsterritoriesorprotectorates.
43. WarandTerrorism
war(declaredorotherwise),terrorism,warlike,military,terroristorguerrillaactivity,sabotage,forceofarms,hostilities(declaredorundeclared),rebellion,revolution,civildisorder,insurrection,usurpedpower,confiscation,nationalisationordestructionofordamagetopropertybyorundertheorderof,anygovernmental,publicorlocalauthorityoranyotherpoliticalorterroristorganisation.
35. FraudandDishonesty
(a) thegainingoforintentionalattempttogainprofit,remunerationoradvantagetowhichyouwerenotlegallyentitled;or
(b) dishonest,fraudulent,malicious,wilfulorcriminalactoromissionbyyouoryourconsultants,sub-contractorsoragents;
intheeventthatanyoftheaboveisestablishedbyfinaladjudicationofajudicialorarbitraltribunalorbyyourwrittenadmission.
36. Insolvency
yourinsolvency,liquidation,administrationorreceivership.
37. ObligationtoEmployees
bodilyinjury,mentalinjury,sickness,diseaseordeathofanyemployeeordamagetoordestructionofanypropertyofanemployee,includinglossofuse,arisingoutoforinthecourseoftheiremployment.
38. RadioactivityandNuclearRisk
ionisingradiationorthecontaminationbyradioactivityfromanynuclearfuelorfromanynuclearwastefromthecombustionofanynuclearfuel.
39. PriorClaims/Circumstances
(a) disclosuretousinthesubmission,ofanyclaim,inquiry,investigation,conduct,factormatterregardlessofhowitisexpressed;or
(b) factsorconductwhichhaveorhasbeennotifiedunderanyearlierpolicy;or
(c) factsorconductwhichyouknew,oroughtreasonablytohaveknown,priortothecommencementofthispolicymightgiverisetoaclaimorinquiry;or
(d) anyproceeding,inquiryorsimilarprocessonfootatthecommencementofthispolicy,oranyproceeding,inquiryorsimilarprocessderivedfromessentiallythesamefactsasinsuchproceeding,inquiryorprocess.
40. RetroactiveDate
anycivilliability,act,errororomissionorotherconductwhichfirstoccursbeforetheretroactivedatespecifiedintheschedule.
41. TradingDebts
anytradingdebtthatyouincuroranyguaranteethatyougiveforadebt.
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Part5–ClaimsConditions44. Notification
Youmustnotifyusofanyclaimmadeagainstyouduringtheperiodofcoverassoonaspracticableaftertheclaimismade.Youmustgivenoticeofanyclaim,lossorothermatterinwriting,andsenditto:
TheClaimsManager,ProfessionalRisksDivisionAllianzAustraliaInsuranceLimited2MarketStreet,Sydney,NSW,2000.
45. Co-operation
Youmustatyourowncost:
(i) renderallreasonableassistancetousandco-operateinthedefenceofanyclaimorinquiryandtheassertionofindemnificationandcontributionrights;
(ii) givesuchinformationandassistancetousaswemayreasonablyrequiretoenableittoinvestigateanyclaimorinquiryordetermineourliabilityunderthispolicy.
46. Mitigation
Youmustuseallduediligenceanddoandconcurindoingallthingsreasonablypracticabletoavoidordiminishanycivilliability,defencecostsoranyothercostsorlossinrespectofwhichweareliabletoindemnifyyouunderthispolicy.
47. OurConsent
Youshallnotadmitorassumeanyliability,enterintoanysettlementagreementorconsenttoanyjudgmentinrelationtoanyclaimorinquirywithoutourpriorwrittenconsent.
48. DefenceandSettlement
Wedonotassumeanydutytodefend,andyoushalldefendandcontestanyclaimmadeagainstyouunlessweelectinwritingtotakeoverandconductthedefenceandsettlementofanyclaim.Ifwedonotsoelect,weshallbeentitled,butnotrequired,toparticipatefullyinsuchdefenceandthenegotiationofanysettlement.
IfthereisanydisputebetweenusandyouaboutwhethertoagreetoaproposedsettlementoraboutwhetheraclaimshouldcontinuetobedefendedthedisputeshallbedealtwithinaccordancewithCondition49‘Disputes’.
49. Disputes49.1 General
NeitherwenoryoumayrequiretheothertocontestanyclaimunlessSeniorCounseladvisesthattheclaimshouldbecontested.
Informulatinghisorheradvice,SeniorCounselmusttakeintoconsiderationthedamagesandcostswhicharelikelytoberecoveredbytheplaintiff,thelikelydefencecostsandyourprospectsofsuccessfullydefendingtheclaim.
49.2 AppointmentofSeniorCounsel
Ifaclaimismadeagainstyou,wemaynominateaSeniorCounsel.IfwenominateaSeniorCounsel,youmustnotifyuswhetherornotyouapproveofournomineeassoonaspracticable.IfwecannotagreewithyouuponSeniorCounselwithinareasonabletime,SeniorCounselwillbesuchpersonasthePresidentoftheNewSouthWalesBarAssociationappoints.
49.3 CostsofSeniorCounsel’sOpinion
ThecostofSeniorCounsel’sopinionisincludedinthedefencecosts.
49.4 Meaningof‘SeniorCounsel’
Forpurposesofthisclause,‘SeniorCounsel’meansapractisingbarristerwhoisentitledtopracticeasaQueensCounselorSeniorCounselinAustraliaorNewZealand.
50. ElectiontoContestIfwerecommendsettlementofanyclaimandyoudonotagreetosuchsettlement,youmayelecttocontesttheclaim.However,ourliabilityinconnectionwiththeclaimisthenlimitedtotheamountwerecommendinsettlementplusdefencecostsincurredwithourconsentuptothedatewerecommendsettlementtoyou.
51. Allocation51.1 General
Intheeventthereareanumberofcauseswhichcontributetoaclaimmadeagainstyou,weagreetoindemnifyyouinrespectofyourliabilityforthatpartoftheclaim,includingdefencecosts,whichiscoveredunderthepolicyirrespectiveofwhetheroneormoreoftheothercausesisexcludedunderthepolicy.
51.2 BestEfforts
Bothpartieswillusetheirbesteffortstoagreeuponwhatisattributabletoindemnifiedandexcludedcauses.IntheeventthatanagreementcannotbereachedanExpertshalldetermine,asanExpertbutnotanarbitrator,thecausesofthelossandthepercentageattributabletoeachcause.UntilsuchExperthasmadehisorherdetermination,wemay,atourabsolutediscretion,paysuchamountinsuredunderthisConditionasweconsiderappropriate.
51.3 Meaningof‘Expert’
‘Expert’shallmeananappropriatelyqualifiedindustryexpertnominatedbyus.
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56. GST
Theamountthatweareliabletopayunderthispolicywillbereducedbytheamountofanyinputtaxcreditthatyouareormaybeentitledtoclaimforthesupplyofgoodsorservicescoveredbythatpayment.
Ifyouareentitledtoaninputtaxcreditforthepremium,youmustinformusoftheextentofthatentitlementatorbeforethetimeyoumakeaclaimunderthispolicy.WewillnotindemnifyyouforanyGSTliability,finesorpenaltiesthatarisefromorisattributabletoyourfailuretonotifyusofyourentitlement(orcorrectentitlement)toaninputtaxcreditonthepremium.
Ifyouareliabletopayadeductibleunderthispolicy,theamountpayablewillbecalculatedafterdeductionofanyinputtaxcreditthatyouareormaybeentitledtoclaimonpaymentofthedeductible.
57. 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.
58. ScopeandGoverningLaw
Anyissuerelatingtotheconstruction,validityoroperationofthispolicyshallbedeterminedinaccordancewiththelawsoftheCommonwealthofAustraliaandtheAustralianStateorTerritoryinwhichthepolicyisissued.Exceptasotherwiseprovidedherein,thepartiessubmittotheexclusivejurisdictionoftheAustraliancourts.
59. Subrogation
Unlessotherwisestatedinthepolicy,intheeventofanypaymentunderthispolicy,weshallbesubrogatedtoallofyourrightsofrecoveryinrespectofsuchpayment.Inaddition,youshallexecuteallandanydocumentationanddoanyotherthings,atyourowncost,asmaybenecessarytoenableustobringanactionorsuitforsuchrecovery.
Part6–OtherConditions52. Assignment
Thispolicyandanyrightsunderorinrespectofitcannotbeassignedbyyouwithoutourpriorwrittenconsent.
53. Cancellation
(i) Youmaycancelthispolicybygivingnoticeinwritingtous.Ifsuchnoticeisgiven,thecancellationwilltakeeffectonthedaythenoticeisreceivedbyus.
(ii) WemaycancelthispolicyinanyofthecircumstancessetoutintheInsuranceContractsAct1984.Suchcancellationistotakeeffect30daysfromthetimenotificationisreceivedbyyou.
(iii) Uponcancellationbyyouorus,youwillreceivean80%proratarefundofpremiumfortheunexpiredportionoftheperiodofcoversubjecttonoclaimsorcircumstancesorinquirieshavingbeenmadeduringtheperiodofcover.
(iv) Whenthepremiumissubjecttoadjustment,cancellationwillnotaffectyourobligationtosupplytoussuchinformationasisnecessarytopermitthepremiumadjustmenttobecalculatedandtopaytheamountoftheadjustmentapplicableuptothedateofcancellation.
54. ChangeofControl
Weshallnotbeliabletomakeanypaymentortoprovideanyservicesinconnectionwithanyclaimorinquiryarisingoutof,baseduponorattributabletoanycivilliability,act,errororomissionorotherconductcommittedaftertheoccurrenceofamerger,takeover,orsale,excepttotheextentthatthereiscoverunderOptionalExtension29‘Run-offafterMerger,TakeoverorSale’,andsuchcoverhasbeenincludedunderthispolicy.
55. Currency
AllmonetaryamountsunderthispolicyareexpressedandpayableinAustraliancurrency.Ifjudgementisrendered,settlementisdenominatedorotheramountpayableunderthispolicyisstatedinacurrencyotherthanAustraliandollars,paymentunderthispolicyshallbemadeinAustraliandollarsatthecashrateofexchangeforthepurchaseofAustraliandollarsdeterminedbythefreemarketrateofexchangeaspublishedinthecurrencyconversionwebsitewww.oanda.com,orifnolongercurrent,acurrencyconversionwebsiteselectedbyusonthedatethefinaljudgementisreachedortheamountofthesettlementisagreedupon.
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Anyrecoveryreceivedshallfirstbeappliedagainstthecostsoftherecoveryproceeding,thenanypaymentmadebyusandthentoanybalanceremainingthereafterbeingremittedtoyouuptotheamountofanyuninsuredloss.
YoushallnotdoanythingwhichshallprejudiceourrightsunderthisCondition.
WeagreenottoexerciseanysuchrightsofrecoveryagainstanyofficeroremployeeunlessitisestablishedthatExclusion35‘FraudandDishonesty’appliestotheclaimandtheofficeroremployee.
Inoursolediscretion,wemay,inwriting,waiveanyofitsrightssetforthinthisCondition.
60. AlterationtoRisk
60.1 Youmustnotifyusassoonaspracticableofanymaterialalterationtoriskduringtheperiodofcoverincluding:
(a) ifyousubmittovoluntarybankruptcy,receivershiporliquidation;or
(b) ifyoufailtopaydebts;or
(c) ifyoubreachanyotherobligationgivingrisetotheappointmentofareceiver,bankruptcy,orwindingupproceedings;or
(d) anymaterialchangeinthenatureoftheprofessionalservices.
60.2 Wheresuchnoticeisgivenand/orwherethereisanymaterialalterationtotherisk,wereservetherighttocancelthispolicyinaccordancewiththeInsuranceContractsAct1984(Cth).
60.3 Notwithstanding60.2,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;
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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
(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.
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(ii) controlsmorethanhalfofthevotingpower;or
(iii) holdsmorethanhalfoftheissuedsharecapital.
(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.
(c) inaccordancewithwhoseinstructionsorwishesthedirectorsoftheinsuredorsubsidiaryareaccustomedtoact(excludingadvicegivenbythepersonintheproperperformanceoffunctionsattachingtotheperson’sprofessionalcapacityortheirbusinessrelationshipwiththedirectorsortheinsuredorsubsidiary).
(o) periodofcovermeans
theperiodoftimespecifiedassuchintheschedule.
(p) professionalservicesmeans
theprofessionalservicesprovidedbyyouforafeeorotherremunerationinrespectoftheProfessionalBusinessasspecifiedintheschedule.
(q) publicrelationsexpensesmeans
allreasonablepaymentsincurredbyyouwithourpriorwrittenconsent(suchconsentnottobeunreasonablydelayedorwithheld)forpublicrelations,crisismanagementorlegalservicesreasonablyrequiredtopreventorminimiseadverseornegativepublicityasadirectresultofaclaimorinquirycoveredbythispolicy.
Itdoesnotmeanorinclude:
(i) responsecostsasdefinedunderOptionalExtension24‘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;
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POL7
54BA
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
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