Summary of Professional and Public Liability Insurance for Prospect Members in Communication, Media and Digital Sectors

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1 Summary of Professional and Public Liability Insurance for Prospect Members in Communication, Media and Digital Sectors 31st January, 2014

2 Contents Page Introduction 3 Part 1 Professional Indemnity Insurance Part 2 Public & Products Liability Insurance Indemnity to Principal Run Off Cover Claims Reporting Scheme Brokers Complaints

3 Introduction This Summary is not intended to be exhaustive and does not in any way alter the Terms & Conditions of the Policy. In the event of any conflict, the Terms & Conditions of the Policy will take precedence over this Summary. Members are advised to examine the Policy Documents for full details of the Terms & Conditions which are available as a download from the website link This Scheme is exclusively available to Prospect Members only. The Policy is provided by HCC International Insurance Company plc. (a subsidiary of HCC Insurance Holdings Inc.) which is regulated by the Financial Conduct Authority. Quotations under the Scheme are available following submission and acceptance of individual application forms. On acceptance a Schedule and Policy will be issued to each Member for a 12 month period from the date of commencement. Each Member will be invited to renew the Policy at prevailing rates prior to expiry each year. 3

4 PART 1 PROFESSIONAL INDEMNITY INSURANCE Indemnity Limit The limit of indemnity selected is on an any one claim basis (in other words no restrictions as to the number of claims in a year apply, but each claim is subject to the maximum limit selected (which applies to a single or series of claims arising from one originating cause regardless of the number of persons claiming indemnity under the Policy). Members have options to select limits best suited to their needs starting at 1,000,000 any one claim to a maximum of 5,000,000 any one claim. Key Features of the Cover No excess is deducted in respect of any claim Full retroactive cover is provided in respect of the Members previous work (provided they are not aware of any claims or circumstances likely to give rise to a claim prior to commencement of the Policy) Legal Defence Costs are covered in addition to the limit of indemnity Selected Cover is provided on a worldwide basis provided Members are ordinarily resident in the United Kingdom Claims can be settled anywhere in the World except claims brought within the jurisdiction of U.S.A. or Canadian Courts 4

5 Includes Claims made against Members for Legal Liability arising from:- Breach of Professional Duty Breach of Contracts to design or supply deliverables such as software, hardware, firmware and other electronic equipment Libel & Slander Unintentional Breach of Confidentiality Unintentional Infringement of Intellectual Property Rights Loss off or damage to digitised data and other documents Dishonesty of Employees Virus Cover (should the Member inadvertently pass on a virus to an independent third party assuming it has not been created by the Member) up to an aggregate of 1,000,000 (inclusive of Defence Costs and Expenses) in total for all claims made during the period of insurance Costs for prosecuting infringements of Members Intellectual Property Rights (up to a maximum of 25,000 in total in any period of insurance) Irrecoverable fees often Claims can be avoided (and therefore business relationships saved) by consideration being given to waiving outstanding fees owed to Members. Where it can be shown that the pursuit of such fees would result in a greater counter claim then the cover permits insurers to work with Members closely and potentially reimburse their outstanding fees Data Protection Cover included up to 250,000 in total in any period of insurance to defend a Criminal Prosecution under the Data Protection Act 5

6 Main Exclusions Any claim that is not notified during the period of insurance Risks that should be insured elsewhere e.g. Employers Liability Any claims brought within the jurisdiction of North American Courts Any claims relating to War, Terrorism and Nuclear Risks Any claims relating from the infringement of any patent Where Rights of Recovery are restricted or the Members Duty of Care has been extended by contract beyond that which would apply at Common Law Where the Member has failed to take reasonable steps to ensure that any Contract entered into is capable of being fulfilled in accordance with its Terms Cost and expenses incurred in recall, repair or replacement of deliverables Defects in third party deliverables Claims and circumstances known at inception of the cover Trading losses, Fines and Penalties, Insolvency or Bankruptcy of any Member This Policy does not provide coverage in respect of risks located offshore 6

7 PART 2 PUBLIC & PRODUCTS LIABILITY INSURANCE Indemnity Limit The limit of indemnity is on an any one claim basis except claims under the Products Liability or Pollution Liability extensions where the limit of indemnity is the total amount that can be claimed in any one period insurance. The limits of indemnity are inclusive of Defence Costs and expenses. Key Features of the Cover Cover is provided on a worldwide basis provided Members are ordinarily resident in the United Kingdom Claims can be settled anywhere in the World except claims brought within the jurisdiction of U.S.A. or Canadian Courts Retroactive Cover is not applicable as this section will only cover work undertaken during the currency of the Policy and will not apply to accidents which have occurred prior to the commencement of this Insurance Excess The first 250 of any third party property damage claim is excluded Members are insured for their liability to pay damages and Defence Costs following damage to Property or Personal Injury arising from the work insured (including from the sale or supply of products) 7

8 Main Exclusions Any work of demolition (other than demolition solely undertaken with hand tools or structures not exceeding 5m in height), construction, alteration or repair of bridges, towers, steeples, chimneys, shafts, blast furnaces, viaducts, mines, dams or transport tunnels, pile driving, tunnelling or quarrying, use of explosives for any purpose, excavations below 3m in depth, any work carried out in excess of 15m in height, any work involving ship repair, ship breaking or work on vessels or aircraft Any claims the subject of insurance by any other Policy Any injuries to employees or damage to their personal effects Deriving out of any deliberate, conscious or intentional disregard by the Member s technical or administrative management of the need to take all reasonable steps to prevent injury or damage Claims arising from exposure or alleged exposure to asbestos, or materials or products containing asbestos Arising out of or in connection with the design, sale or supply of computer software (but not the media or its packaging on which the software is stored) Loss, damage, deterioration of or corruption to computer programmes or electronic data including consequential or Pure Financial Loss Arising out of work on any part of any aerodrome/airport provided for take off or landing of aircraft or movement of aircraft or parking of aircraft including associated surface roads and ground equipment, parking areas This policy does not provide coverage in respect of Risks located offshore Incidents arising from work undertaken prior to inception of cover Indemnity to Principal Where Members request the Insurers agree to indemnify any Principal of the Member in accordance with the Policy Terms 8

9 Run-off Cover Members that retire, cease to trade or practice or otherwise no longer require Professional Liability Insurance may request quotations for run-off cover under this Scheme (or alternatively arrange for any subsequent policy to include full retroactive cover) to deal with claims that may arise from their previous work. As the Public Liability section is arranged on a Claims Occurring basis it is not necessary for the Public Liability section to be extended to include run-off cover. Claims Reporting Any Member becoming aware of any circumstances that could lead to a potential claim under the Policy should notify the Scheme Brokers as soon as reasonably practical and follow the advice of the Insurers or their Legal Representatives. 9

10 Scheme Brokers This Scheme is managed by Graybrook Insurance Brokers Limited who are authorised and regulated by the Financial Conduct Authority registered number Each Member is subject to the Terms of Business of Graybrook Insurance Brokers, a copy of which is available as a download from Graybrook Insurance Brokers Limited 8 Chandlers Way South Woodham Ferrers Tel Essex CM3 5TB Fax enquiry@graybrook.co.uk Website: 10

11 Complaints Whilst all reasonable care has been taken in preparing this Scheme, any complaint should be directed to:- William Hulse ACII Managing Director, Graybrook Insurance Brokers Limited, 8 Chandlers Way, Tel: South Woodham Ferrers, Fax: Essex. CM3 5TB williamhulse@graybrook.co.uk 11