Victoria follows Queensland and NSW on PI insurance for Building Consultants

Victoria follows Queensland and NSW on PI insurance for Building Consultants

The Victorian Government has lowered the insurance requirements for building professionals operating in this State. In effect, it means that the requirement on Building Practitioner’s to have NO exclusion in respect of non-conforming building materials has been done away with. What disappoints me is that some insurers were taking, what to me was, a very fair approach and only excluding known non-conforming building materials. With […]

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Blog Question: Contribution between insurers

Blog Question: Contribution between insurers

Hello Allan, I have a claim where the Insured has two policies. One insurer [Insurer X] is deducting the gross settlement from other insurer [Insurer Y] from their settlement so the client is in effect worse off by taking out a second policy. Fundamentally, I cannot agree with an insurers approach and feel that despite our insured purchasing additional cover through a second insurer to […]

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Take care on reducing coverages

As the team at PolicyComparison.com go through new policies and update, they bring to my attention any changes that gives them concern. What is being noticed is, at the same time rates are increasing in many classes of general insurance,  some new and/or broader in their effect exclusions are being introduced and that these could easily be missed. One such change has been the introduction […]

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Blog Question: new exclusion on professional indemnity policies in respect of non-compliant building materials

I recently received this email: Hi Allan, Further to your posts regarding issues with shoddy building products, unfortunately insurers are now seeking to exclude this risk in a very heavy handed manner. In particular, exclusions to professional indemnity insurance for building surveyors, architects etc that removes all cover irrespective of fault. The below clause for example is extremely onerous & removes all cover even in […]

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Insuring Trusts

Following on this week’s theme for the blog of who to name on the policy, I focus today on trusts. I do this before I tackle liability and financial lines policies where trusts are common place.  The important issue to remember is that a trust is not a separate legal entity, it is a relationship where the trustee is under a legal obligation to administer trust […]

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Defence costs are not litigation costs

You cannot live in Melbourne and not have a story involving the Australian Football League as a lead story each day. Earlier this week it spilt over to the insurance industry when high profile personality, James Hird allegedly is taking action against an insurer for not meeting the costs of his litigating against the AFL and ASADA (Australian Sports Anti-doping Authority). As I read what has […]

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Lloyd’s Have Extended Their Sanctions Limitations and Exclusion Clause to Include Australia

Sanctions exclusion clauses and warranties are nothing new and, in fact, are commonly used across the insurance industry as a tool for insurers to mitigate risk arising from the international sanctions regimes to which they may become exposed (e.g. suppliers and /or customers coverage). Wordings vary according to the country of origin. Lloyd’s have put out a Market Bulletin, No Ref: Y4861 on the subject which covers […]

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English Case sets to explain the duty of a broker when it comes to setting the sum insured

In the case of Eurokey Recycling Ltdv Giles Insurance Brokers Ltd [2014] EWHC 2989 (Comm) the broker was being sued when the Insured found they did not have any where near adequate business insurance. Far too often we see the broker being seen as a second line insurer when the Insured find themselves without the incorrect or inadequate insurance. While the case is an English one and is not binding […]

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Podcast on Directors and Officers (D&O) Insurance #insurance

A series of interviews I had with Dallas Booth on his television program Dollars with Sense has aired recently. Those interested may like to see the interview by clicking here. To the brokers, it may be worth sending out the link to clients who need the cover but do not have it in place. That way it is a sales tool as well as protecting your […]

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Blog Question on the need for Professional Indemnity Insurance

The question put to me was: Hi Allan We have a client whose activities include, Alarm installation (no consulting, manufacturing or importing alarms). Where does the client stand legally if they are not charging a fee for advice or recommendations and there are no reports issued? Would you still recommend a PI policy? I had a look at LMI’s Risk Coach, which says the exposure […]

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