GSA

Specialist Unique Industry Products (ie; Valuation Idustry etc)

In today’s litigious society, company directors, managers and professionals who provide specialist advice or services face the real prospect that they could be sued by any number of people from corporate regulators through to disgruntled clients or employees.

In order to ensure that you are adequately protected in the event that you are sued, you need to protect your assets (and your company’s assets) by purchasing a policy or, if you are providing professional advice or services, a Professional Indemnity insurance policy.

Our aim is to take the to worry out of your hands, from completing the application through to policy inception and beyond, we endeavour to ensure that you understand and are comfortable with the cover you have purchased. We will use our expertise to develop a policy that ensures the broadest coverage available; not just a “stock standard” policy.

Below is a brief description of a number of professional risks insurance products:

Professional Indemnity (P.I) Insurance

Individuals who provide professional services have legal obligations to clients and other third parties in conducting their business and may have a personal exposure.
Professional Indemnity (PI) insurance provides cover for claims made against professionals alleging a breach of professional duty.
Policies can cover individuals or a corporation and its directors and employees.
A PI policy typically covers damages, third party legal costs and defence costs.
PI insurance should be considered by any individual who is providing advice and/or service of a skilful nature according to an established discipline.

Directors' and Officers' (D&O) Liability Insurance

Directors or officers of a corporation are exposed to personal financial liability in relation to any claim brought against them in their capacity as a director or officer of a corporation. These duties are significant and may arise from statute or common law.

Sources of legal action against directors and officers include:
Regulatory bodies;
Shareholders;
Employees;
Customers;
Suppliers.

D&O insurance provides protection to past, present and future directors and officers for claims against them for wrongful acts in their capacity as directors or officers of a corporation.
Often the most significant cost of a D&O claim is the defence costs however it also covers damages and third party legal costs.

Prospectus Liability (IPO) Insurance

Prospectus liability insurance is essentially a specific D&O policy which provides protection to the corporation and its directors and officers against exposures relating to the listing of a corporation on a stock exchange.
The process of listing a corporation creates unique exposures to directors and officers. An IPO insurance policy provides protection to cater specifically to those issues.
Policies can be purchased on a multi year basis thereby offering long term protection to the directors and officers.

Investment Managers (IMI) Insurance

An Investment Managers Insurance policy protects investment fund managers against exposures faced by them relating to the raising of capital from investors. Importantly, an IMI insurance policy complies with the insurance requirements of the Managed Investments Act 1998 (Cth).

IMI policies combine Professional Indemnity insurance, Directors & Officers Liablity insurance and Crime Insurance in the one policy for investment fund managers which overcomes arguments over whether the claim arises out of a breach of the fund manager’s professional duty or their duty to exercise due care and diligence in the management of the company.

Medical Malpractice (Med Mal) Insurance

Medical malpractice insurance provides cover for claims arising out a breach of professional duty in the conduct of a medical practice/profession.

Medical Malpractice insurance will typically cover damages, third party legal costs and defence costs relating to legal liability for third party bodily injury, death, mental illness or disease caused by a breach of professional duty.

Information Technology (IT) Liability Insurance

Due to the nature of information technology services there can be some grey area as to whether a claim should fall under a Public & Products Liability policy providing coverage for third party claims relating to bodily injury and property damage or a Professional Indemnity Policy which covers third party claim for financial loss due to professional negligence.

The IT Liability Insurance product has been developed to address this uncertainty as it provides cover for both civil liability arising from the conduct of the Insured’s professional business practice, and third party loss caused by bodily injury or Property damage, the IT Liability policy will provide coverage for damages, third party legal costs & defence costs.

Crime Insurance/Fidelity Guarantee Insurance

Crime Insurance policies are designed to protect the company from financial losses as a result of employee fraud or dishonesty.

A company’s balance sheet is at significant risk to loss as a direct result of criminal activity such as employee dishonesty, forgery, counterfeiting, theft, destruction and disappearance of property, and computer related crime (including external computer hackers). This can be either internal (employee-based) or external (non-employee based). Such perils can have potentially devastating consequences to a company’s bottom line and can even threaten solvency.

Even companies claiming the best internal controls and compliance procedures face a real threat of incurring significant loss. Criminal intent can often outsmart the relevant controls and procedures; many companies have found to their detriment that you cannot be sure of the integrity of long-serving or senior employees.

Companies often highlight their highly professional accountants and statutory audit as justification for not purchasing relevant crime coverage. However, whilst auditors may act in a preventative role, their main function is to verify annual accounts. Few losses are discovered by auditors, but rather by chance very often several years later by an inquisitive staff member or following complaints by a client.
Crime Insurance is the only way to ensure your company is adequately protected against these exposures.

Employment Practices Liability (EPL) insurance

EPL insurance provides protection to a corporation and its management for claims alleging an employment practices breach.

An employment practices breach includes:
discrimination;
wrongful dismissal;
workplace harassment;
wrongful demotion/failure to promote;
wrongful refusal to employ;
misleading representation or advertising relating to employment and
employment-related defamation.

EPL insurance provides covers for defence costs, damages and third party legal costs.

Specialist Industry Products

For the Valuation Industry

Preferred Suppliers and Helpful Links

Phillips Fox www.dlaphillipsfox.com

NPG www.networkpropertygroup.com.au

Johnston Rorke www.jr.com.au

Australian Property Institute www.propertyinstitute.com.au

APIG www.apig.com.au

Scalepluswww.scaleplus.law.gov.au

ASIC www.asic.gov.au

ASX www.asx.com.au