Specialities | Professional & Financial Risks

Typically the policies summarised below cover damages, third party legal costs and defence costs.

Associations Liability
Is a combined policy designed to protect an association from legal liability the association may incur in the conduct of its activities or incurred by directors / office bearers / management / committee members in the performance of their duties.

If you are an Incorporated Association, Not For Profit Organisation, Community / Sporting / Social / Cultural Group or an Industry Association, this policy is designed to protect you.

The most common of these policies include: Directors and Officers Liability, Professional Indemnity, Employment Practices Liability and Fidelity.

The policy limit is shared across all of the insured sections which makes it highly affordable.

CrimeCrime policies are also know as Fidelity policies and cover financial loss which the insured has sustained directly as a result of dishonest or fraudulent acts of any person.

The policies have several optional sections, the purchasing of which depends on the exposures a business has and wishes to insure against.

The primary section is the fidelity section, which covers direct financial loss arising out of the dishonest or fraudulent acts of employees of the insured corporation. Examples of claims are embezzlement of money or theft of stock.
Direct financial loss resulting from computer related crime is also available.

Directors and Officers Liability / Company ReimbursementDirectors or officers of a corporation are exposed to personal financial liability in relation to claims or allegations of wrongful conduct, made against them in connection with the discharge of their duties. The duties imposed by statute are numerous (e.g. the Corporations Act, Workers Compensation and OH&S Acts) and may also arise at common law.

Potential sources of legal action are; Shareholders, employees, customers, suppliers and regulatory bodies. The personal assets of a director or officer may be at risk in such circumstances.

D&O policies automatically cover past, present and future directors and officers for claims against them for wrongful acts in their capacity as directors or officers.

The policy also provides cover under the Company Reimbursement section of the policy to protect the corporate entity where it is legally entitled to indemnify its directors and officers to defend allegations made against them.

If you would like to obtain a quotation for this cover, please read our fact finding document here and then contact our office.

Entity Employment Practices LiabilityEmployment Practices Liability (EPL) insurance covers the insured company, its management and employees against claims for wrongful employment practices.

This insurance covers the corporation for employment related claims.

A Directors'' and Officers'' policy covers claims against individual directors and officers for their legal liability for wrongful employment practices, but, unless specifically extended to do so, does not cover claims against the corporation itself, which is usually the target of these actions.

The policy can be written as an extension of a Directors & Officers policy or it can be written as separate policy.

Wrongful employment practices include:

  • wrongful or unfair dismissal;
  • wrongful failure to hire or promote;
  • discrimination and harassment;
  • misleading representation or advertising relating to employment;
  • invasion of privacy; and
  • employment-related defamation.
Information and Communication TechnologyInformation and Communications Liability insurance provides coverage for claims arising from failure of the insured''s products, services and/or advice. Cover can also include infringement of intellectual property rights, defamation or breach of confidentiality, loss of documents/data and some policies can be extended to include defence costs for breach of contract.


These policies combine a Public/Products Liability policy with a Professional Indemnity policy to protect against the potential uncertainties of which policy a claim should fall under.

A public/product liability policy covers third party claims for property damage and personal injury where a Professional Indemnity policy covers third party claims for financial loss.

If the policies are placed separately and, particularly, if they are placed with different insurers, a claim could potentially fall between the two policies.

It is preferable to insure these exposures under a policy which has been designed to specifically address this.

Initial Public Offerings or Prospectus Liability InsuranceProspectus Liability or IPO offers protection to the corporation and its directors and officers for claims arising from a listing or the issue of a product disclosure statement.

It is common for policies to be arranged for either 6 or seven years (statute of limitations period) from the date of lodgement of the offer document. Once the premium is paid, the policy cannot be cancelled.

Purchasing this form of insurance is an alternative to extending a Directors & Officers insurance policy to cover these exposures and provides a separate limit of indemnity for claims arising from an offer document and protects the limit of indemnity available to Directors & Officers under the D&O policy.

Because the policy cannot be cancelled, continuous protection is available for the full period of insurance chosen. This eliminates the potential difficulties associated with an annual renewal should cover be effected as an extension of a D&O policy an a claim arises.

Investment Managers InsuranceInvestment managers face a wide range of risks in the conduct of their business.

Whilst certain insurance requirements such as Professional Indemnity and protection against Fraud of its officers are regulated through legislation, protection for the private assets of Directors & Officers is also an prudent exposure to insure against.

Investment Managers insurance combines Professional Indemnity insurance, Directors'' and Officers'' Liability insurance and Crime insurance. The limit of indemnity is usually shared across the three policy sections which has the impact of reducing the overall premium. Policies with individual limits are also available.

A managed investment scheme, rests liability to the scheme members with the responsible entity, even if caused by the negligence of an agent. Further, officers, employees and compliance committee members all have duties, breaches of which can expose them to the prospect of claims.

The introduction of ASIC Regulatory Guideline 126 (RG126) for all Australian Financial Services Licencees has further defined the scope and level of cover that should be purchased and the manner in which the policy should be structured.

Medical MalpracticeThe major difference between Professional Indemnity and Medical malpractice policies is that a malpractice policy covers legal liability triggered by a by breach of professional duty causing defined bodily injury, common definitions of bodily injury are; death, bodily injury, mental anguish, mental injury, illness or disease.

Hospitals, clinics, ambulance companies, pathology laboratories, diagnostic companies, respite centres, aged-care homes, telephone counselling services and medical employment agencies are examples of healthcare providers for which medical malpractice insurance is designed.

Professional IndemnityProfessional Indemnity policies in their purest form are designed to cover financial loss suffered by third parties as a result of a breach of professional duty in the provision of professional services.

Policies can be written to cover individuals or a corporation including its partners, principals, directors and employees.

Whilst PI insurance is generally purchased by the more traditional professions such as architects, engineers, lawyers and financial service providers (E.G. accountants), any party who is providing advice and/or service for a fee should consider their exposures and the need for this type of cover.

Securities Entity Cover (Publicly Listed Companies)Written as an extension to a Directors and Officers Liability policy it provides protection to the corporation for claims arising from the purchase or sale or the offer to purchase or sell securities of the corporation.

For more details, click here.
For further details, please contact the Manager of our Professional & Financial Risks Team.

  The Pitfalls of Free Credit Card Travel Insurance  
  Looking For a Finance Broker? PTR Asset Finance May Be Able to Assist  
  Proportionate Liability  
  New Workers Compensation Claim Forms  
  New Code Of Practice For Safer Plant & Machinery in WA  
  State of the Insurance Market  
  Is Your Liability Limit Sufficient?  
  View all