Question 1

What is a Directors and Officer Liability Insurance Clause?

Accepted Answer

Directors & Officers Liability - covers directors and officers for personal liability arising from claims made against them as a result of their role as managers of the company where the company is unable or unwilling to pay their defence costs or damages. Eg. Allegations of fraud or in cases where the company is insolvent.

Question 2

Do WH&S regulators charge a fee for investigating WH&S contraventions?

Accepted Answer

WH&S regulators do not generally charge a fee for investigating alleged WH&S contraventions. However, the entity the subject of an investigation will often incur expenses involved with providing information to the WH&S regulator. This can include engaging experts to assist with responding to queries from WH&S regulators

Question 3

Can contractors also claim under the Employment Practices Liability Extension?

Accepted Answer

Our policy only provides cover for Company Employee's. It does not cover independent contractors, consultants or labour hire workers. Contractors are generally engaged under a contract for services, whereas employees are employed under an employment contract. The EPL cover responds to claims for breaches of employment contracts, not contracts for services.

Question 4

Can you provide examples of fines against NSW commercial property owners (non strata)?

Accepted Answer

There could be fines for many areas but probably the most relevant is a breach of WH&S laws. That is a non-safe workplace or non-safe property.

Question 5

Why you need Management Liability Insurance?

Accepted Answer

There are few (if any) industries where companies can afford to ignore the legal and regulatory risks of their operations. The liability environment is constantly evolving particularly in the current economic climate, business failures, regulatory investigations and actions, employment practices claims, commercial disputes, and employee theft are becoming more prevalent. As a result, directors and officers of Australian companies are increasingly vulnerable.

Question 6

Are WH&S fines / penalties in NSW, VIC, WA covered by Statutory Liability under Management Liability?

Accepted Answer

No. However, costs for defending allegations of WH&S contraventions are still covered. Defence costs may be more than the WH&S fine.

Question 7

Is the exclusion in respect of consumer protection law common with insurers?

Accepted Answer

Yes, it is. The fines under consumer protection laws are extremely high and with premiums under Management Liability low, consumer protection fines are too high to be covered under Management Liability insurance.

Question 8

Who is a Design & Construct Policy for?

Accepted Answer

Berkley Insurance Australia’s (BIA) Design and Construct (D&C) insurance policy is a Professional Indemnity (PI) insurance policy, specifically designed to cater to entities that perform the physical construction or manufacture of products, goods, structures or buildings as well as having responsibility for the provision of any design, advice or any other professional services relating to those works. The policy provides protection for an Insured against claims for financial loss arising out of an act, error or omission in the course of their professional activities and duties.

Question 9

Are you able to provide a brief explanation of the Mitigation Cost extension, and how it operates under the policy?

Accepted Answer

If a structural engineer discovers an error in their design which could result in a building falling down, the engineer may be covered for mitigation costs of supporting the building to ensure it does not fall down in the short term until they can contact us. The insured must notify us immediately when they discover the problem and work with us to reduce the liability as much as possible.

Question 10

For Excess capacity can you separate the two sections of Professional Indemnity and Public & Products Liability?

Accepted Answer

Yes, we can do them individually. They are written under separate Excess of Loss Professional Indemnity and Public Liability policies.

Question 11

Is it industry standard for Professional Indemnity (PI) policies to exclude cover for bodily injury (BI) where the event links back to the insured’s professional services?

Accepted Answer

No. You should ask for a write back to the exclusion that covers BI arising out of a breach of professional duty. Most PI policies issued by BIA do not contain an exclusion for claims arising from BI if that injury is a result of a breach of professional duty.

Question 12

If an insured reduces their activities should it keep the previous activities performed in the last 7 years listed on the current policy schedule to ensure cover for them?

Accepted Answer

You should note all past, present and future activities on the current policy schedule no matter how long ago the activities were undertaken. The statute of limitations is different depending on the type of claim being brought so it’s a good idea to list all past, present and future activities on PI policies.

Question 13

Are cost exclusive terms generally more expensive than cost inclusive terms?

Accepted Answer

Yes, but it depends on the profession involved. Less exposed professions may not pay much more (if any) for costs exclusive limits. For more exposed professions it will be more expensive or may not be available at all.

Question 14

Does the named insured also include trading / business names?

Accepted Answer

The insured must be a natural person or legal entity. Trading or business names are not legal entities and therefore do not have legal capacity to enter contracts (including a contract of insurance) or be the subject of legal proceedings. If desired, the trading name can appear alongside the named insured.

Question 15

Does BIA require all entities within a group to be named on the policy schedule if they are to be covered under the policy?

Accepted Answer

Yes. Any legal entity that is to be covered under a policy must be named on the policy schedule. Subsidiaries are not automatically covered.

Question 16

How broad is Berkley’s new Listed Human Disease Exclusion really meant to be?

Accepted Answer

We originally applied a Communicable Disease exclusion but we were concerned that this exclusion was too broad. That is why we now apply Listed Human Disease exclusion as it specifically refers back to diseases listed by the World Health Organisation, so not as broad an exclusion as the previous Communicable Disease exclusion.

Question 17

What Is Public and Product Liability Insurance?

Accepted Answer

Public and Product Liability Insurance (PPL) protects you and your business against financial loss arising from your legal liability to pay compensation to a third party when they have suffered a personal injury, property damage or an advertising injury. This injury or damage must be in the direct course of your business or as a result of one of your Products.

Question 18

Does the association need to have separate Public Liability cover?

Accepted Answer

Does the association need to have separate Public Liability cover?

Question 19

For Excess capacity can you separate the two sections of Professional Indemnity and Public & Products Liability?

Accepted Answer

Yes, we can do them individually. They are written under separate Excess of Loss Professional Indemnity and Public Liability policies.

Question 20

Why do you need Public and Products Liability Insurance?

Accepted Answer

What if an accident occurs on your premises or an injury arises directly caused by your product. Do you have adequate protection to cover large out of pocket expenses?
This is why Public and Products Liability is essential to protect your business against any financial loss resulting from an injury claim. For example, if a labour hirer suffered an injury at your premises they could potentially file two claims. One from the labour-hire company for workers’ compensation and one from the injured or their family seeking medical or pain and suffering compensation. If you are sufficiently covered Berkley Insurance Australia will cover all out of pocket expenses so you can focus on operating your business.

Question 21

Does run-off cover work in the exact same way as a typical Professional Indemnity run-off? Is there a set % premium decrease each year as long as no claims are made?

Accepted Answer

BIA can provide run-off cover on an offer and acceptance basis. It is offered on a sliding scale similar to Professional Indemnity and Management Liability policies.

Question 22

Does BIA’s Medical Malpractice policy cover NDIS participants who make fraudulent claims or submit fake invoices?

Accepted Answer

This would not be covered under our policy due to the Fraud, Dishonest, Criminal or Intentional Loss, Damage or Injury Exclusion.

Question 23

Can BIA offer higher limits for Inquiry Costs and Medical Fund Fraud?

Accepted Answer

$250,000 is the maximum limit we can offer for Inquiry Costs and Medical Fund Fraud.

Question 24

What is BIA’s appetite towards clinical trial practices?

Accepted Answer

Unfortunately, clinical trial practices are an automatic decline occupation.

Question 25

Does BIA cover NDIS service providers?

Accepted Answer

Yes, we can offer a Medical Malpractice policy to NDIS services providers.

Question 26

What medical service occupations does BIA exclude?

Accepted Answer

Standard exclusions within our Medical Malpractice policy wording exclude midwifery and obstetric services. We also exclude activities where we are not comfortable with the exposure presented.

The following occupations/professions are an automatic declinature for us:

Public/government hospitals;
Private Hospitals providing Accident & Emergency or Intensive Care Unit Services;
Independent blood banks, not operating as part of a hospital/clinical organisation;
Midwives and maternity/obstetrics;
Abortion clinics;
Medical Practitioners involved in gender reassignment, organ transplant, spinal surgeons, neuro surgeons;
Euthanasia clinics;
Radiologists;
Anaesthetists;
Any risk where the Proposer’s business is domiciled in USA;
Chiropractors;
Child Care;
Podiatrists involved in surgery where any anaesthetics other than a local anaesthetic used; and
Any business directly involved in testing or research on coronavirus or similar communicable diseases.

Question 27

Does BIA’s Medical Malpractice policy cover Employed Medical Practitioners?

Accepted Answer

Our policy is not designed to cover doctors (employed or contracted) and only covers the vicarious liability of the insured arising from its engagement of a a contracted doctor.

Question 28

Does the association need to have separate Public Liability cover?

Accepted Answer

Does the association need to have separate Public Liability cover?

Question 29

Do you apply the Human Disease Exclusion to Association Liability policies?

Accepted Answer

Yes, the Listed Human Disease is applied on all risks under BIA’s Association Liability policy.

Question 30

Does run-off cover for association work in the exact same way as a typical Professional Indemnity run-off? Is there a set % premium decrease each year as long as no claims are made?

Accepted Answer

BIA can provide run-off cover on an offer and acceptance basis. It is offered on a sliding scale similar to Professional Indemnity and Management Liability policies.

Question 31

What is the difference between Management Liability and Association Liability insurance policies?

Accepted Answer

BIA’s Association Liability policy is intended for Not for Profit entities including incorporated Associations. Associations Liability policies are Professional Indemnity based products with limited Management Liability covers (e.g. Fidelity, private D&O, EPL, Statutory Liability.

Question 32

Does BIA cover registered training organisations (RTOs), including trades/apprentices?

Accepted Answer

BIA can consider Registered Training Organisations including trades/apprenticeships.

Question 33

What are the BIA Association Liability policy limits and sub-limits?

Accepted Answer

Directors' & Officers' – up to $20M
Employment Practices Liability - up to $20M
Crime – Fidelity only, up to $250K.
Statutory Liability – up to $3M
Organisation – Up to $20M

Question 34

What is an Information Technology Organisations and Professionals Insurance Policy?

Accepted Answer

Berkley Insurance Australia’s (BIA) Information Technology Organisations and Professionals (ITOPS) insurance policy is a combined Professional Indemnity (PI) and Public and Products Liability (PL) insurance policy, specifically designed to cater to the IT industry. The PI section of the policy provides civil liability protection against claims arising out of the supply or provision of your Information Technology Services or Information Technology Products in the conduct of your business. The PL section of the policy provides protection for you against claims arising from Bodily Injury and/or Property Damage arising out of the supply or provision of your Information Technology Services, or Information Technology Products or caused by your Information Technology Products.

Question 35

Can you cover Artificial Intelligence?

Accepted Answer

Yes, this is possible. However, it is subject to the individual application being within our appetite.

Question 36

Is there cover for breach of software licence terms & conditions?

Accepted Answer

The BIA IT Liability policy does cover unintentional infringement of Intellectual Property Rights of a Third Party including Third Party Licensees as well as shrink wrap licencing.

Question 37

Does your IT Liability Policy include patent and intellectual property rights (IPR) cover?

Accepted Answer

Yes, our policy includes patent and IPR cover. For full details please refer to the policy wording.

Question 38

Are recruiters of IT consultants able to be covered under a BIA IT Liability policy?

Accepted Answer

YOUR QUESTIONS ANSWERED

General questions

Public & Products Liability

Professional indemnity

Medical Malpractice

Association Liability

IT Liability

Management Liability

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