A disturbing response to my post today on buying business insurance direct – Get Ready for a Manning Rant!

In response to my earlier post today I received this email from a distressed broker. Thanks yet again Allan for your insights. Yes; it is extremely distressing to note the upsurge in the so-called ‘direct’ market influence. I’m going to be very blunt now & tell you about an experience I’ve had during the last week. The son of a very loyal commercial client of 30 […]

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Beware of Changes in Liability Policies

I have noticed that there has been a few insurers that have been altering their exclusions under Liability and/or the Liability Section in their Business Pack policies. The change is in the Defamation, Libel and Slander exclusion. One of the ones that has changed reads: Defamation, Libel, Slander in respect of the Cover provided under Section –  Public and Products Liability: the publication or utterance […]

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Understanding Section 46 of the “Insurance Contracts Act”

Like most sections of the Insurance Contracts Act 1984 [Cth Act  80 of 1984] it is designed to protect the Insured. The main point is that an insurer is not able to deny liability for a defect, unless the defect is known to the Insured or ought to reasonably be known to them. The Section, however, does not protect all Insureds. The attached paper by South […]

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Blog Question – Cafe tables and chairs on the council footpath

I received this question late last week” “Good afternoon Prof Manning,  I have a Liability query.  We have an insured who has a cake/coffee shop. On one side of our insured is a restaurant and on the other side there is a dwelling. Our Insured has asked permission from both landlords if they can extend their setting of outdoor tables and chairs (see drawing attached […]

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The need for “contract certainty” # 1 Statutory Fines and Penalties Cover

The need for any contract to provide certainty is, on the face of it, important. This allows each party to the contract to know exactly what their rights and responsibilities are. As a contract of insurance is, to my mind, the most important contract a business owner enters into in their business life, coupled with the fact that insurance is a product that does not […]

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The need for “contract certainty” # 2 Claims Preparation Fees

The second area that has to be addressed sooner rather than later is claims preparation fees. Under an Industrial Special Risks (“ISR” ) Policy, the Insured has the right to appoint a claims preparer. The words from the Mark IV, both Advisory and Modified versions reads: Item No. 2 “The insurance under this item is to cover such reasonable professional fees as may be payable by […]

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News Corp claim under their Directors and Officers Policy

On Monday 22nd April 2013, News Corporation advised that it had recovered $139 million in insurance proceeds in a settlement with shareholders over the board of directors’ actions related to the company’s phone hacking scandal and its acquisition of Shine studios. The company said the money would come from insurance policies held by members of the board who were the defendants in the suits. While this matter did […]

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Caution in Premium Funding Directors & Officers Liability Insurance

One of the areas of coverage that is available, but not always, under a Directors & Officers, or Management, Liability Policy is for insolvency. Particularly in these tough times companies do go into liquidation and this can create an risk exposure for the directors from creditors and perhaps shareholders. It is at this time that the directors and senior officers of the organisation require the protection afforded by […]

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New reinsurance capital – what does it mean for the insurance industry?

Global reinsurance capital has grown to record levels,  on the back of an influx of funds from non-traditional sources (now estimated to be 14% of global capacity) and this is clearly changing the face of the market. David Flandro, Global Head of Business Intelligence, Guy Carpenter & Company, stated in an article on 11 April: “it is having a ‘significant impact’ on property catastrophe business in […]

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Another Council another Problem

Just as one problem appears to be solved (see posting above) another one rears its ugly head. This time from New South Wales. The following email explains the problem: Dear Allan, I was wondering if I could call on your expertise to assist with the following. The local council has introduced an Awning Policy. This has not come about from any recent events locally and […]

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