A Background to Insurance, Professional Indemnity & Risk Management for Architects

Save this PDF as:
 WORD  PNG  TXT  JPG

Size: px
Start display at page:

Download "A Background to Insurance, Professional Indemnity & Risk Management for Architects"

Transcription

1 A Background to Insurance, Professional Indemnity & Risk Management for Architects By Graham Strez NZACS Claims Director and Chairman of Acanthus Insurance Company (Note: Several diagrams in the original are not reproduced here) History Modern living and business activities in general involve the risk of sustaining losses of varying type and degree. If risks to life and limb, and capital weren t taken there would have been little technological, economic or social advancement; e.g. Gothic architecture, aviation, hydrodams, nuclear power generation, and medical surgery techniques. The economic loss consequences of risk taking can be substantial and sometimes ruinous. Insurance is a method of compensating for these losses. Insurance of a kind is known to have existed in Greek and Phoenician societies. Bottomly was an early form of shipping insurance wherein investors would place a deposit with a shipping owner, who agreed to refund the deposit plus a premium when the ship returned safely to port. If the ship failed to return, the deposit would be retained by the ship owner for the purpose of rebuilding another ship. Marine insurance was conducted in England in 1574; Fire insurance in As an alternative to intoxicated bars, a number of coffee houses were established in London to cater for different clientele. Edward Lloyd was a coffee house proprietor who attempted to attract marine underwriters as customers by printing a weekly shipping news sheet. It was from this background in 1696 that a group of marine underwriters formed an underwriting exchange known as Lloyds, which has continued to become the world s specialist insurance underwriter. Companies formed to transact insurance now operate globally as important commercial entities. Commercial Basis of Insurance Insurance is one of the more interesting and important transactions engaged in by individuals and business firms. It embraces two related interests - financial and legal. A financial definitions of insurance is a financial arrangement that distributes the cost of unexpected losses (losses which would have occurred irrespective of insurance). Predictability of losses in advance is basic to an insurance system s operations. Because the insurance system allows the cost of losses to be predetermined, it allows

2 the cost of losses to be financed and redistributed in advance. Insurance companies therefore rarely pay for losses; they merely provide the facility for the payment of losses from a pool of funds contributed by policyholders. Legally, insurance may be defined as a contractual arrangement wherein one party (Insurer) agrees to compensate another party (Insured) for losses. This contract (policy) specifies the particular loss and provides for the insured to pay a contribution (premium) to the insurer. The policy creates rights and corresponding obligations for both insurer and insured. The insurer cannot force the insured to pay the premium, but it can cancel the policy or deny a claim for payment. Insurance Principles When referred to in insurance, loss means an undesired, unplanned reduction in economic value. It may be direct e.g. life, fire, structural collapse - or indirect (consequential loss) e.g. accommodation costs incurred as a consequence of a house fire. Property insurance policies are very specific as to whether coverage is provided for either or both. The chance of loss (probability of loss) may or may not be known before a loss takes place, but it is the ratio of the number of losses (predicted or actual) to the number of exposure units. If there was no possibility of loss, or if loss was certain to occur, then insurance would not exist. In the first instance there would be no need to insure, and in the second the loss would be an expense. Hazards are conditions that serve to increase either the frequency or severity of losses e.g. poor street lighting may result in more burglaries or storage of petrol in a garage may result in a greater loss if the garage caught on fire. If an insured materially increases a hazard, the insurer may suspend the insurance coverage. If an individual causes a loss to collect the insurance (e.g. arson) this is know as a moral hazard - it increases the frequency of loss. Where an attitude of indifference to loss is created by the purchase of insurance this is known as morale hazard. This why should I care attitude increases the severity of loss. Risk is subject to many definitions, but a convenient expression is the variation in possible outcomes of an event based upon chance i.e. the greater the variation around an average expected loss, the greater the risk. The degree of risk is a measure of the accuracy with which the outcome of an event based on chance can be predicted - the more accurate the prediction, the lower the degree of risk. Because insurance companies keep accurate statistics on losses that have occurred, they are in a better position to predict losses that will occur.

3 Additionally insurers, by accepting a large pool of risks, rely upon a mathematical principle known as the law of large numbers. For exampie, the greater the number of observations of an event based on chance, the more likely the actual result will approximate the expected result e.g. tossing a coin or rolling a dice. Ironically, a calculated risk is something that cannot be calculated. Insurers however will pay regard to the following to arrive at an underwriting risk average. The probability of loss The possible severity of loss Types of Insurance The possible degree of variation in actual results. Insurance is a Special Kind of Contract Contracts normally assume an equal understanding of the terms by both parties e.g. A agrees to pay B for item C. Insurance is concerned with unequal knowledge i.e. the insured has full knowledge of their risk circumstances which could disadvantage the insurer. Insurance contracts therefore require the insured to disclose all information, which is material to the risk and which might influence the insurer in accepting or declining the risk. Insurance contracts are required to be made with the utmost good faith (uberrimae fide) in which both parties deal honestly with each other. Additionally the insured is required to warrant that the information provided to the insurer is accurate. Failure to disclose accurate material information may invalidate the insurance policy. Professional Indemnity (Negligence) Insurance Professional indemnity or professional negligence, insurance is a special type of legal liability insurance, which applies to professional services. Professional negligence is failure to exercise reasonable knowledge, skill, care and diligence normally expected of a particular profession. This duty of care is owed contractually to the client, but also tortiously to the client and to other classes of person who ought reasonably be contemplated as being likely to be affected by the actions of the professional - e.g. new building owner, together with subsequent owners or tenants.

4 Professional, indemnity policies are normally written on a claims made basis i.e. the policy must be in force when the claim, is notified, notwithstanding that the negligent act or omission which gave rise to the claim occurred before the policy was written. Often it may take many years for the negligence to fully manifest itself and then for claims to be settled. Writs for professional negligence typically allege breach of contract and breach of tortious duty. Such tortious claims sue the various co-defendants jointly and severally. The net effect of this is that where any of the joint tortfeasors is found to be of little financial worth, the liability payment falls upon the remaining solvent defendants. In the case of building works, this is typically the professional and the territorial authority that issued the building consent and code compliance certificate. Professionals and territorial authorities are typically insured by PI policies, and accordingly provide a good deep pocket for litigants. Clients often erroneously believe that the professional s PI policy is for their immediate benefit, whereas it merely increases the net worth of the professional, and in doing so affords the client greater surety when liability is proven. PI insurance does not protect a firm against risk occurring, it offers restoration after the eventual loss. Types of Risk Fundamental Fundamental risks affect entire communities and are uninsurable through private insurers - e.g. war, nuclear fission, and earthquake. Government assistance is involved e.g. EQC. Pure Pure risks can only result in a loss -e.g. death, fire, theft, and liability. These risks are insurable by private insurers. Speculative Speculative risks may result in a gain, loss or no change. These are uninsurable risks: cf. casino gambling, horse racing. Society may benefit from speculative risks, but always loses from pure risk loss.

5 Important Insurance Terms Actuary A statistician who solves insurance risk problems. Agent A person who sells insurance policies as an agent for the insurer. Agents may be employed by the insurer or commissioned to them. Broker A person who arranges insurance as an agent for the insured. Consequential Loss A secondary loss resulting from an insured peril. Claims Made A type of liability policy that responds to claims made during the period covered by insurance - even through the cause of loss arose earlier e.g. PI policies. This differs from an occurrence made policy where the policy responds when the loss is sustained e.g. fire or vehicle insurance. Estoppel Conduct of insurer or agent, which suggests that a waiver applies. Excess Sometimes called deductible. This is the initial loss cost, which is borne by the insured. Group Insurance A pool of like risks with one shared policy. It generally attracts a lower premium because of its minimal administrative and marketing overheads. NZACS, CEAS, and PSBG operate Group Insurance schemes. Indemnity Putting the insured in the same financial position after a loss as before the insured event took place. It recognises depreciation, unlike replacement cost insurance. Loss Adjuster An insurance investigator as agent for insurer, who checks if loss is covered by the policy, and negotiates the settlement of any Claim. Loss Assessor A person who as agent for insurer, assesses the value of loss. Proximate Relationship

6 First peril in a chain of events which results in a loss. Primary Insurer The insurer which contracts with the insured. Reinsurer A secondary insurer which contracts with the primary insurer to accept a specified portion of risk for a share of the premium. Subrogation The substitution of one party (insurer) to another party s (insured) rights. This permits the insurer to recover from a third party who is responsible for the loss. Underwriter A person who selects and rates applications for insurance. Waiver An intentional abandonment of insurance terms.

A Background to Insurance, Professional Indemnity & Risk Management for Architects

A Background to Insurance, Professional Indemnity & Risk Management for Architects A Background to Insurance, Professional Indemnity & Risk Management for Architects (Note: Several diagrams in the original are not reproduced here) History Modern living and business activities in general

More information

Role in the project (e.g. Prime Engineering Consultant or Contractor), and summary of professional Duties : Name Professional Duties Contract Awarded?

Role in the project (e.g. Prime Engineering Consultant or Contractor), and summary of professional Duties : Name Professional Duties Contract Awarded? PROPOSAL FORM FOR SINGLE PROJECT PROFESSIONAL INDEMNITY NOTE: THIS IS A PROPOSAL FOR A CLAIMS MADE POLICY Note : Please provide any necessary explanations or additional details by attachment to this Proposal

More information

Glossary of Insurance Terms

Glossary of Insurance Terms From the Insurance Bureau of Canada (IBC) Accident: An event that happens by chance and is not expected in the normal course of events, which results in harm to people, damage to property or equipment,

More information

GENERAL CONDITIONS FOR INSURANCE OF A TRANSPORT COMPANY S LIABILITY AS CARRIER IN CONNECTION WITH CARRIAGE OF GOODS BY ROAD

GENERAL CONDITIONS FOR INSURANCE OF A TRANSPORT COMPANY S LIABILITY AS CARRIER IN CONNECTION WITH CARRIAGE OF GOODS BY ROAD GENERAL CONDITIONS FOR INSURANCE OF A TRANSPORT COMPANY S LIABILITY AS CARRIER IN CONNECTION WITH CARRIAGE OF GOODS BY ROAD These general conditions are approved by the Swedish Insurance Federation and

More information

UNIVERSITY OF CALICUT SCHOOL OF DISTANCE EDUCATION. (2011 Admn. onwards) VI Semester RISK MANAGEMENT AND INSURANCE

UNIVERSITY OF CALICUT SCHOOL OF DISTANCE EDUCATION. (2011 Admn. onwards) VI Semester RISK MANAGEMENT AND INSURANCE UNIVERSITY OF CALICUT SCHOOL OF DISTANCE EDUCATION (2011 Admn. onwards) VI Semester B.Com-BANKING - SPECIALISATION RISK MANAGEMENT AND INSURANCE Question Bank & Answer Key Choose the correct Answer from

More information

Glossary of Insurance Terms: (obtained from website: http://www.iii.org/individuals/glossary/alfa.l/)

Glossary of Insurance Terms: (obtained from website: http://www.iii.org/individuals/glossary/alfa.l/) Glossary of Insurance Terms: (obtained from website: http://www.iii.org/individuals/glossary/alfa.l/) ACTUAL CASH VALUE A form of insurance that pays damages equal to the replacement value of damaged property

More information

INSURANCE DICTIONARY

INSURANCE DICTIONARY INSURANCE DICTIONARY Actuary An actuary is a professional who uses statistical data to assess risk and calculate dividends, financial reserves, and insurance premiums for a business or insurer. Agent An

More information

Common Insurance & Contractual Terms

Common Insurance & Contractual Terms Common Insurance & Contractual Terms Ab Initio Adjectives Agent Aggregate Liability Arising out of or arising from or in connection with Automatic Reinstatement Aviation Insurance Building Certifier Insurance

More information

HEALTH INSURANCE. IC 01 - PRINCIPLES OF INSURANCE (Revised Edition: 2011) Objectives

HEALTH INSURANCE. IC 01 - PRINCIPLES OF INSURANCE (Revised Edition: 2011) Objectives HEALTH INSURANCE IC 01 - PRINCIPLES OF INSURANCE (Revised Edition: 2011) Objectives This course intends to provide a basic understanding of the insurance mechanism. It explains the concept of insurance

More information

Professional Indemnity Insurance Glossary of Terms

Professional Indemnity Insurance Glossary of Terms Professional Indemnity Insurance Glossary of Terms Index Aggregation of claims Automatic reinstatement Average provision Cancellation Civil liability Claim Claims made Consumer protection legislation Continuous

More information

QUEST - QBE COMPREHENSIVE MOTOR INSURANCE MASTER POLICY

QUEST - QBE COMPREHENSIVE MOTOR INSURANCE MASTER POLICY QUEST - QBE COMPREHENSIVE MOTOR INSURANCE MASTER POLICY CONTENTS PAGE SECTION 1: LOSS OR DAMAGE TO VEHICLE 1 INSURING CLAUSE 1 AUTOMATIC EXTENSION 1 LIMIT OF INDEMNITY 1 EXCLUSIONS 1 EXCESS FOR SECTION

More information

Your Exam Content Outline

Your Exam Content Outline Your Exam Content Outline The following outline describes the content of one of the Wisconsin insurance examinations. The outlines are the basis of the examinations. The examination will contain questions

More information

TERMS OF BUSINESS AGREEMENT

TERMS OF BUSINESS AGREEMENT Insurance and Reinsurance Brokers Iris Insurance Brokers Ltd 7 th Floor, New London House 6 London Street, London, EC3R 7LP United Kingdom. Tel: +44 (0)20 3178 7872 Fax: +44 (0)1702 431 644 Email: mail@irisib.com

More information

ACI Presentation January 2014. Owner s Protective Professional Indemnity. Ray Bustamante Managing Director

ACI Presentation January 2014. Owner s Protective Professional Indemnity. Ray Bustamante Managing Director ACI Presentation January 2014 Owner s Protective Professional Indemnity Ray Bustamante Managing Director I - Financial Risks to Owner from Design Errors on design/bid/build projects Owner implies warranty

More information

Professional Indemnity Insurance Guide for FCA Regulated Firms (2015)

Professional Indemnity Insurance Guide for FCA Regulated Firms (2015) Professional Indemnity Insurance Guide for FCA Regulated Firms (2015) Nathan Sewell, CEO of Protean Risk, answers the Top 50 questions we are regularly asked as a specialist provider of Professional Indemnity

More information

C11 Principles and Practice of Insurance

C11 Principles and Practice of Insurance Sample Exam C11 Principles and Practice of Insurance IMPORTANT The time allowed for this exam is 3 hours. Total marks: 200 You must hand in this paper and any paper used for rough work to the supervisor

More information

MEDIATORS DECLARATION PEACEWISE MASTER POLICY

MEDIATORS DECLARATION PEACEWISE MASTER POLICY Marsh Pty Ltd ABN 86004651512 PO Box H176 AUSTRALIA SQUARE NSW 1215 PROFESSIONAL INDEMNITY INSURANCE MEDIATORS DECLARATION PEACEWISE MASTER POLICY Professional Indemnity Declaration for Mediators who have

More information

DGI04 Liability Insurance Underwriting

DGI04 Liability Insurance Underwriting DGI04 Liability Insurance Underwriting Module Description: This module aims to provide the candidate with the knowledge and skills in commercial liability insurance operations. It deals with the legal

More information

PROFESSIONAL INDEMNITY INSURANCE COUNCIL OF ENGINEERS JANUARY 22, 2014

PROFESSIONAL INDEMNITY INSURANCE COUNCIL OF ENGINEERS JANUARY 22, 2014 PROFESSIONAL INDEMNITY INSURANCE COUNCIL OF ENGINEERS JANUARY 22, 2014 RISKS MANAGEMENT MIX STRATEGY Transferred Risk (Insurance) Level Of Risk Reduced Risk (Safety Measures) Avoided Risk Retained Risk

More information

INSURANCE AGENCY AGREEMENT

INSURANCE AGENCY AGREEMENT INSURANCE AGENCY AGREEMENT BritAmerica Management Group, Inc., hereinafter referred to as the Company, hereby appoints: Agent Agency Address City State Zip Tax ID hereinafter referred to as the Agent.

More information

INS 3101: PRINCIPLES OF RISK MANAGEMENT AND INSURANCE. By 5315045 Pichaya Sadudeechevin

INS 3101: PRINCIPLES OF RISK MANAGEMENT AND INSURANCE. By 5315045 Pichaya Sadudeechevin INS 3101: PRINCIPLES OF RISK MANAGEMENT AND INSURANCE By 5315045 Pichaya Sadudeechevin Chapter 1: Risk and Its treatment What is risk? Risk is uncertainty concerning the occurrence of loss. - Objective

More information

Limitation of Liability

Limitation of Liability Limitation of Liability Submission to the Attorney-General (Western Australia) July 2000 The Institution of Engineers, Australia Institution of Engineers, Australia 11 National Circuit, Barton, ACT, 2604

More information

Who we are and how to contact us

Who we are and how to contact us welove agents.co. uk Who we are and how to contact us WeLoveAgents The Boardwalk, Cambridge Research Park, Cambridge CB25 9PD Phone: 01223 792297 Fax: 01223 792273 Email: info@weloveagents.co.uk The Financial

More information

Chapter 1 Insurance Concepts & Principles

Chapter 1 Insurance Concepts & Principles Chapter 1 Chapter Objectives Your learning objectives are as follows: Understand the mechanism of insurance. Understand the difference between property and casualty insurance. Learn the parts of the insurance

More information

SCHEDULE 9: INSURANCE REQUIREMENTS

SCHEDULE 9: INSURANCE REQUIREMENTS SCHEDULE 9: INSURANCE REQUIREMENTS Part 1: General Requirements 1 Public Liability and Products Liability 1.1 Cover Legal liability of the Insured Party (being the parties listed in paragraph 1.2 of this

More information

Professional Indemnity Proposal Form

Professional Indemnity Proposal Form Professional Indemnity Proposal Form IMPORTANT NOTES This insurance cover is based upon representations given to us by you. Should any particulars have changed or be incorrect you must notify us immediately.

More information

JUA Underwriting Agency Pty Ltd

JUA Underwriting Agency Pty Ltd JUA Underwriting Agency Pty Ltd Engineers & Architects Professional Indemnity Proposal Form Please answer every question fully, incomplete answers will not be accepted, and may result in a delay in terms

More information

WORKERS COMPENSATION GLOSSARY

WORKERS COMPENSATION GLOSSARY WORKERS COMPENSATION GLOSSARY ACCIDENT An unplanned and unexpected event which occurs suddenly and at a definite place resulting in injury and/or damage. ACCIDENT FREQUENCY The rate of the occurrence of

More information

Alliance Insurance Company of Zimbabwe (Private) Limited

Alliance Insurance Company of Zimbabwe (Private) Limited Alliance Insurance Company of Zimbabwe (Private) Limited MEDICAL PROFESSIONAL INDEMNITY POLICY WHEREAS the Insured, as defined herein, has made to Insurers a written proposal or risk profile bearing the

More information

Dotting the i s & Crossing the t s Professional Indemnity Insurance

Dotting the i s & Crossing the t s Professional Indemnity Insurance Dotting the i s & Crossing the t s Professional Indemnity Insurance Michael Earp 26 th May 2009 Dotting the i s & Crossing the t s Professional Indemnity Insurance CONTENTS OF PRESENTATION What is Professional

More information

PROFESSIONAL INDEMNITY INSURANCE SCHEME (AGGREGATED & POOLED LIMIT) FOR SMALL AND MEDIUM SIZE CONSULTANTS

PROFESSIONAL INDEMNITY INSURANCE SCHEME (AGGREGATED & POOLED LIMIT) FOR SMALL AND MEDIUM SIZE CONSULTANTS THE INSTITUTION OF ENGINEERS, MALAYSIA (8029-A) MALAYSIAN ASSURANCE ALLIANCE BHD PROFESSIONAL INDEMNITY INSURANCE SCHEME (AGGREGATED & POOLED LIMIT) FOR SMALL AND MEDIUM SIZE CONSULTANTS Background: Whilst

More information

Agent Agreement WITNESSETH

Agent Agreement WITNESSETH PATRIOT NATIONAL UNDERWRITERS, INC. Agent Agreement THIS AGENT AGREEMENT (the Agreement ) is made and entered into by and between Patriot National Underwriters, Inc., a Texas corporation ( Patriot ), and

More information

INFORMATION FOR OBSERVERS. IASB Meeting: Insurance Working Group, April 2008 Paper: Non-life insurance contracts (Agenda paper 6)

INFORMATION FOR OBSERVERS. IASB Meeting: Insurance Working Group, April 2008 Paper: Non-life insurance contracts (Agenda paper 6) 30 Cannon Street, London EC4M 6XH, England International Phone: +44 (0)20 7246 6410, Fax: +44 (0)20 7246 6411 Accounting Standards Email: iasb@iasb.org.uk Website: http://www.iasb.org Board This document

More information

Professional Indemnity

Professional Indemnity Professional Indemnity What is Professional Indemnity insurance? Insurance cover that protects a Professional (company, organisation or entity providing a professional service) Against the Insured s legal

More information

What is an insurance policy? Financial Risk: Insurance Questions and Answers. What is insurable interest? What is insurable interest?

What is an insurance policy? Financial Risk: Insurance Questions and Answers. What is insurable interest? What is insurable interest? Financial Risk: Insurance Questions and Answers What is an insurance policy? A legally binding contract Insurance company and the policyholder (person insured) In exchange for payment (premium) The insurance

More information

Actuary - A specialist in the mathematics of insurance who calculates rates, reserves, etc.

Actuary - A specialist in the mathematics of insurance who calculates rates, reserves, etc. AAAAA Actuary - A specialist in the mathematics of insurance who calculates rates, reserves, etc. Adjuster - An individual representing the insurance company and acting for the company in working on agreements

More information

A GUIDE TO PURCHASING LAWYER S PROFESSIONAL LIABILITY INSURANCE IN VIRGINIA

A GUIDE TO PURCHASING LAWYER S PROFESSIONAL LIABILITY INSURANCE IN VIRGINIA A GUIDE TO PURCHASING LAWYER S PROFESSIONAL LIABILITY INSURANCE IN VIRGINIA Presented By The Virginia State Bar's Special Committee on Lawyer Malpractice Insurance May 2008 The Need For Professional Liability

More information

Professional Indemnity Insurance Policy

Professional Indemnity Insurance Policy Table of Contents Introduction... 1 Page Definitions... 1 Act of Terrorism... 1 Claim... 1 Documents... 1 Excess... 1 Inquiring Body... 1 Inquiry Costs... 1 Insured... 2 Insured Costs... 2 Insurer... 2

More information

What you need to know about......run off. Call us Mon-Fri 9am-6pm

What you need to know about......run off. Call us Mon-Fri 9am-6pm Call us Mon-Fri 9am-6pm 0345 251 4000 Run off cover is a professional indemnity insurance policy which comes into effect when a business stops trading and any claims made under it will relate to work carried

More information

Florida Senate - 2016 SB 1274

Florida Senate - 2016 SB 1274 By Senator Latvala 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 A bill to be entitled An act relating to sinkhole insurance; amending s. 624.407, F.S.; specifying

More information

EVS - Information Paper 1/13

EVS - Information Paper 1/13 EVS - Information Paper 1/13 ASSESSMENT OF VALUE OF INSURED DAMAGE 1 Introduction 2 Scope 3 Definitions 4 Recommendations 5 Assessment Methodology 6 Other Issues 7 References 1. Introduction 1.1. This

More information

Application for Credit (Business Account)

Application for Credit (Business Account) Application for Credit (Business Account) APPLICANT INFORMATION Structure Public Company Proprietory Company Sole Proprietor Partnership Company Trading As Trustee for ACN / ABN Phone Fax Mobile Email

More information

Steadfast Client Broker Agreement (Wholesale Broker) [Steadfast member] and GSA Insurance Brokers Pty Ltd

Steadfast Client Broker Agreement (Wholesale Broker) [Steadfast member] and GSA Insurance Brokers Pty Ltd Steadfast Client Broker Agreement (Wholesale Broker) [Steadfast member] and GSA Insurance Brokers Pty Ltd Table of contents Parties... 1 Background... 1 Operative provisions... 1 1 Licence and registration...

More information

Sample Exam 2 in Insurance Operations Spring 2011

Sample Exam 2 in Insurance Operations Spring 2011 Sample Exam 2 in Insurance Operations Spring 2011 Finance 160:163 Dr. A. F. Thompson 1. If the frequency of loss is low and the severity is high, generally the most appropriate risk management tool to

More information

III -- POLICY AND CERTIFICATE PROVISIONS

III -- POLICY AND CERTIFICATE PROVISIONS Chapter III -- POLICY AND CERTIFICATE PROVISIONS Subchapter B. -- Property and Casualty Insurance Part 71. -- Legal Defense Costs in Liability Policies (Regulation 107) Updated with all regulations adopted

More information

INSURANCE REQUIREMENTS FOR CONSTRUCTION CONTRACTS ABOVE $25,000

INSURANCE REQUIREMENTS FOR CONSTRUCTION CONTRACTS ABOVE $25,000 Page 1 of 9 DOCUMENT 00850 INDEMNIFICATION AND INSURANCE REQUIREMENTS EXHIBIT B-1 INSURANCE REQUIREMENTS FOR CONSTRUCTION CONTRACTS ABOVE $25,000 Indemnity The Contractor shall indemnify, defend, and hold

More information

INSURANCE REQUIREMENTS FOR ALL CITY CONTRACTS

INSURANCE REQUIREMENTS FOR ALL CITY CONTRACTS INSURANCE REQUIREMENTS FOR ALL CITY CONTRACTS 1. GENERAL PROVISIONS A. Indemnification. The Contractor shall indemnify and save harmless the City of Lincoln, Nebraska from and against all losses, claims,

More information

AGRICULTURAL INSURANCE

AGRICULTURAL INSURANCE AGRICULTURAL INSURANCE OVERALL DESCRIPTION Agricultural insurance is one tool to manage the risks that may arise in agricultural production, which will actively be used by financial intermediaries to hedge

More information

Professional Indemnity Proposal Form. for. Financial Planners

Professional Indemnity Proposal Form. for. Financial Planners Professional Indemnity Proposal Form for Financial Planners Address: 5/3352 Pacific Highway Postal: PO Box 976 Springwood QLD 4127 Springwood QLD 4127 Phone: 07 3387 2800 Fax: 07 3208 2200 Email: pidirect@pidirect.com.au

More information

QUEBEC AUTOMOBILE INSURANCE POLICY Q.P.F. NO. 5 COMPLEMENTARY INSURANCE FOR DAMAGE TO INSURED AUTOMOBILE FORM REPLACEMENT INSURANCE

QUEBEC AUTOMOBILE INSURANCE POLICY Q.P.F. NO. 5 COMPLEMENTARY INSURANCE FOR DAMAGE TO INSURED AUTOMOBILE FORM REPLACEMENT INSURANCE QUEBEC AUTOMOBILE INSURANCE POLICY Q.P.F. NO. 5 COMPLEMENTARY INSURANCE FOR DAMAGE TO INSURED AUTOMOBILE FORM REPLACEMENT INSURANCE October 1 st, 2010 To all interested parties: Enclosed please find the

More information

Chapter 2 The Insurance Mechanism

Chapter 2 The Insurance Mechanism Chapter 2 The Insurance Mechanism Overview Insurance is an important method of transferring pure loss exposures to an entity better positioned to handle these risks. But what is insurance and how does

More information

BUSINESS INSURANCE FAQ

BUSINESS INSURANCE FAQ BUSINESS INSURANCE FAQ Q: What is Business Insurance? A: We strive to understand your risk tolerance and financial ability to withstand the spectrum of potential losses and develop insurance programs to

More information

Client Broker Agreement (Wholesale Broker) Nepean Brokers & Associates Pty. Ltd.

Client Broker Agreement (Wholesale Broker) Nepean Brokers & Associates Pty. Ltd. Client Broker Agreement (Wholesale Broker) Nepean Brokers & Associates Pty. Ltd. and Table of contents Parties... 1 Background... 1 Operative provisions... 1 1 Licence and registration... 1 2 Relationship...

More information

THIRD PARTY ADMINISTRATOR AGREEMENT. (Hereinafter, Agreement ) Between

THIRD PARTY ADMINISTRATOR AGREEMENT. (Hereinafter, Agreement ) Between THIRD PARTY ADMINISTRATOR AGREEMENT (Hereinafter, Agreement ) Between Those underwriting members of Lloyd s, and those other insurers (if any), individually and severally subscribing to the Contract(s)

More information

many activities to be undertaken that would not otherwise take place, and is an effective mechanism for pooling and transferring risk.

many activities to be undertaken that would not otherwise take place, and is an effective mechanism for pooling and transferring risk. 9 March 2015 Royal Commission into Institutional Responses to Child Sexual Abuse Submitted by email: redress@childabuseroyalcommission.gov.au Dear Sir/Madam CONSULTATION PAPER: REDRESS AND CIVIL LITIGATION

More information

NEBRASKA PROPERTY AND LIABILITY INSURANCE GUARANTY ASSOCIATION ACT

NEBRASKA PROPERTY AND LIABILITY INSURANCE GUARANTY ASSOCIATION ACT NEBRASKA PROPERTY AND LIABILITY INSURANCE GUARANTY ASSOCIATION ACT Section. 44-2401. Purpose of sections. 44-2402. Kinds of insurance covered. 44-2403. Terms, defined. 44-2404. Nebraska Property and Liability

More information

Additional Perils Perils added to fire insurance policy, such as damage by storm, tempest or flood.

Additional Perils Perils added to fire insurance policy, such as damage by storm, tempest or flood. Key Insurance terms Act of God (Force Majeure) Nugent v Smith (1876) "Natural causes directly and exclusively without human intervention and that could not have been prevented by any amount of foresight

More information

Georgia Property and Casualty Insurance Cross Reference Study Guide

Georgia Property and Casualty Insurance Cross Reference Study Guide Georgia Property and Casualty Insurance Cross Reference Study Guide This cross reference provides you with the exam outline for your state insurance exam and a reference code where the specific topics

More information

BROKER AGREEMENT. NOW THEREFORE, in consideration of promises, covenants and agreements hereinafter contain, the parties agree as follows:

BROKER AGREEMENT. NOW THEREFORE, in consideration of promises, covenants and agreements hereinafter contain, the parties agree as follows: THIS AGREEMENT is entered into in the State of California this day of 2006, between Crestline Funding Corporation, hereinafter referred to as Crestline Funding, and, hereinafter referred to as Broker.

More information

UIBL TOBA. United Insurance Brokers Ltd. Terms of Business Agreement

UIBL TOBA. United Insurance Brokers Ltd. Terms of Business Agreement TOBA United Insurance Brokers Ltd Terms of Business Agreement 1. Introduction and business service United Insurance Brokers Ltd () is an independent international insurance and reinsurance (1) Lloyd s

More information

Professional Indemnity Proposal Form. for. Finance & Mortgage Brokers

Professional Indemnity Proposal Form. for. Finance & Mortgage Brokers Professional Indemnity Proposal Form for Finance & Mortgage Brokers Address: 5/3352 Pacific Highway Postal: PO Box 976 Springwood QLD 4127 Springwood QLD 4127 Phone: 07 3387 2800 Fax: 07 3208 2200 Email:

More information

THE FOLLOWING ARE INSTRUCTIONS FROM THE FRONT SIDE OF SEAGATE PURCHASE ORDERS:

THE FOLLOWING ARE INSTRUCTIONS FROM THE FRONT SIDE OF SEAGATE PURCHASE ORDERS: THE FOLLOWING ARE INSTRUCTIONS FROM THE FRONT SIDE OF SEAGATE PURCHASE ORDERS: INSTRUCTIONS: Read this entire order form, including the incorporated terms and conditions located at http://www.seagate.com/about/legal-privacy/purchasing-and-pricing/purchase-orders-legal-overview/

More information

Chapter 21. Agenda. Personal liability insurance 4/14/2015. Homeowners Insurance, Section II

Chapter 21. Agenda. Personal liability insurance 4/14/2015. Homeowners Insurance, Section II Chapter 21 Homeowners Insurance, Section II Agenda Personal liability insurance Section II Coverages Section II Exclusions Section II Additional Coverages Section II Conditions Endorsements to a Homeowners

More information

G&T Brokers Limited. Terms of Business Agreement ( TOBA )

G&T Brokers Limited. Terms of Business Agreement ( TOBA ) Terms of Business Agreement ( TOBA ) The purpose of this document is to describe our professional relationship and the services we will provide to you. You should read this document carefully for as well

More information

An Insurance Guide for Small Business

An Insurance Guide for Small Business INSURANCE GUIDE An Insurance Guide for Small Business The Bermuda Small Business Development Corporation (BSBDC) in conjunction with Freisenbruch-Meyer Insurance Services (FMIS) is pleased to make this

More information

Chapter 60 - UNFAIR PROPERTY AND CASUALTY SETTLEMENT PRACTICES RULE

Chapter 60 - UNFAIR PROPERTY AND CASUALTY SETTLEMENT PRACTICES RULE Title 210 NEBRASKA DEPARTMENT OF INSURANCE Chapter 60 - UNFAIR PROPERTY AND CASUALTY SETTLEMENT PRACTICES RULE 001. Authority. This rule is adopted under the authority of the Unfair Insurance Claims Settlement

More information

Pitfalls for brokers when handling professional indemnity insurance

Pitfalls for brokers when handling professional indemnity insurance Pitfalls for brokers when handling professional indemnity insurance 1 WHAT IS THE PROBLEM? 1. YOUR PI EXPOSURE 2. YOUR PI EXPOSURE 3. YOUR PI EXPOSURE DIRECT EXPENSE - THE EXCESS AND POSSIBLE RATE INCREASES

More information

Client Care and Terms and Conditions

Client Care and Terms and Conditions Client Care and Terms and Conditions Introduction We set out below our standard terms and conditions which apply if we act for you. We also provide you with information relating to the Rules of Conduct

More information

GENERAL SWEDISH MARINE INSURANCE PLAN of 1 January 2006

GENERAL SWEDISH MARINE INSURANCE PLAN of 1 January 2006 1 GENERAL SWEDISH MARINE INSURANCE PLAN of 1 January 2006 These conditions have been approved by The Swedish Association of Marine Underwriters and The Swedish Club and are only intended as guidance. There

More information

PROFESSIONAL INDEMNITY INSURANCE SCHEME 1JULY 2011 TO 30 JUNE 2012

PROFESSIONAL INDEMNITY INSURANCE SCHEME 1JULY 2011 TO 30 JUNE 2012 PROFESSIONAL INDEMNITY INSURANCE SCHEME 1JULY 2011 TO 30 JUNE 2012 PROFESSIONAL INDEMNITY INSURANCE In consideration of the Attorneys Fidelity Fund, for and on behalf of every insured (as defined in this

More information

Energy & Shipping Seminar LIABILITY INSURANCE

Energy & Shipping Seminar LIABILITY INSURANCE Institute of Energy for SE Europe - IENE IENE Eugenides Foundation Conference Center, Athens 3 rd of February 2012 Energy & Shipping Seminar LIABILITY INSURANCE George Koutinas Engineer, Insurance Expert

More information

Presentation to the University of Chester Advanced Diploma in Professional Practice in Architecture - 2012

Presentation to the University of Chester Advanced Diploma in Professional Practice in Architecture - 2012 Presentation to the University of Chester Advanced Diploma in Professional Practice in Architecture - 2012 Professional Indemnity + Insurance Roger Hawkins - Hawkins\Brown Chairman of RIBA Insurance Agency

More information

MAIN CIVIL WORKS CONTRACT SCHEDULE 13 INSURANCE TABLE OF CONTENTS

MAIN CIVIL WORKS CONTRACT SCHEDULE 13 INSURANCE TABLE OF CONTENTS MAIN CIVIL WORKS CONTRACT SCHEDULE 13 INSURANCE TABLE OF CONTENTS 1 INTERPRETATION... 1 1.1 Definitions... 1 2 CONTRACTOR PROVIDED INSURANCE COVERAGE... 1 3 BC HYDRO PROVIDED INSURANCE COVERAGE... 2 4

More information

Principles of Risk and Insurance. Introduction to the Principles of Risk and Insurance

Principles of Risk and Insurance. Introduction to the Principles of Risk and Insurance Principles of Risk and Insurance Introduction to the Principles of Risk and Insurance We are exposed to many situations that many cause a loss (perils). The primary purpose of insurance is to provide economic

More information

CHAPTER 31. SOUTH CAROLINA PROPERTY AND CASUALTY INSURANCE GUARANTY ASSOCIATION

CHAPTER 31. SOUTH CAROLINA PROPERTY AND CASUALTY INSURANCE GUARANTY ASSOCIATION CHAPTER 31. SOUTH CAROLINA PROPERTY AND CASUALTY INSURANCE GUARANTY ASSOCIATION SECTION 38-31-10. Short title. This chapter is known and may be cited as the South Carolina Property and Casualty Insurance

More information

Hiscox Professional Indemnity Insurance for IT Consultants and Suppliers Policy Summary

Hiscox Professional Indemnity Insurance for IT Consultants and Suppliers Policy Summary Hiscox Professional Indemnity Insurance for IT Consultants and Suppliers What is a? This document provides key information about Hiscox Professional Indemnity (PI) Insurance for IT consultants and suppliers.

More information

3.6. Please also note, unless your policy confirms otherwise, the rights under your policy may only be pursued in an English court.

3.6. Please also note, unless your policy confirms otherwise, the rights under your policy may only be pursued in an English court. Terms of business agreement - commercial customers M & N Insurance Service Limited Authorised and regulated by the Financial Conduct Authority No: 305837. Registered Office: 248 Hendon Way London NW4 3NL

More information

FUNDAMENTALS OF RISK MANAGEMENT AND INSURANCE

FUNDAMENTALS OF RISK MANAGEMENT AND INSURANCE Preface xv FUNDAMENTALS OF RISK MANAGEMENT AND INSURANCE CHAPTER 1 RISK AND ITS TREATMENT 2 Different Definitions 3 Chance of Loss 4 Peril and Hazard 5 Classification of Risk 6 Major Personal Risks and

More information

Risk Management and Insurance Finance 3050 Sample Final Exam Dr. A. F. Thompson

Risk Management and Insurance Finance 3050 Sample Final Exam Dr. A. F. Thompson Risk Management and Insurance Finance 3050 Sample Final Exam Dr. A. F. Thompson Directions: Please answer the following questions designed to test your knowledge of the fundamentals of risk and insurance,

More information

Galleon Marine Insurance Agency 37/39 Lime Street, London, EC3M 7AY United Kingdom +44 (0)20 7398 3310 contactus@galleon.uk.com www.galleon.uk.

Galleon Marine Insurance Agency 37/39 Lime Street, London, EC3M 7AY United Kingdom +44 (0)20 7398 3310 contactus@galleon.uk.com www.galleon.uk. Galleon Marine Insurance Agency PRODUCT SUMMARY PROFESSIONAL INDEMNITY COVER Service providers to the shipping, transport and oil & gas sectors, Including: Ship agents Ship brokers Ship managers Lloyd's

More information

Transport insurance Guide

Transport insurance Guide Transport insurance Guide Whether you are buying or selling goods from or to the international market, there is always a risk that they may be damaged, lost or delayed in transit. Most people in the supply

More information

Massachusetts Producer's Examination for Casualty Insurance Series 16-54. 100 questions Two-hour time limit Live Date-September 30, 2015

Massachusetts Producer's Examination for Casualty Insurance Series 16-54. 100 questions Two-hour time limit Live Date-September 30, 2015 Massachusetts Producer's Examination for Casualty Insurance Series 16-54 100 questions Two-hour time limit Live Date-September 30, 2015 1.0 Insurance Regulation 10% 1.1 Licensing Process (175:162G X) Types

More information

COAG National Legal Profession Reform Discussion Paper: Professional Indemnity Insurance

COAG National Legal Profession Reform Discussion Paper: Professional Indemnity Insurance COAG National Legal Profession Reform Discussion Paper: Professional Indemnity Insurance Introduction Professional indemnity insurance is insurance that:... indemnifies professional people accountants,

More information

Zurich Fidelity Guarantee Insurance. Policy Wording

Zurich Fidelity Guarantee Insurance. Policy Wording Zurich Fidelity Guarantee Insurance Policy Wording Page of 12 Contents Fidelity Guarantee Insurance Policy Wording About Zurich............................................................................................................................

More information

TERMS OF BUSINESS AGREEMENT - INSURANCE BROKING

TERMS OF BUSINESS AGREEMENT - INSURANCE BROKING 1. BROKER INFORMATION TERMS OF BUSINESS AGREEMENT - INSURANCE BROKING Stephenson s (2000) Ltd T/As Cooke & Mason, Manor House 3 Low Moor Road Lincoln LN6 3JY is an independent Chartered Insurance Broker.

More information

12/14/2015 HOT TOPICS IN MULTI-USE BUILDINGS: INSURANCE, CONSTRUCTION AND DEVELOPMENT INTRODUCTION AND OVERVIEW

12/14/2015 HOT TOPICS IN MULTI-USE BUILDINGS: INSURANCE, CONSTRUCTION AND DEVELOPMENT INTRODUCTION AND OVERVIEW HOT TOPICS IN MULTI-USE BUILDINGS: INSURANCE, CONSTRUCTION AND DEVELOPMENT Philip K. Glick, CPCU, RPLU Two Liberty Place 50 S. 16 th Street, Suite 3600 Philadelphia, PA 19102 P: 267-702-1374 C: 610-551-4734

More information

HOT TOPICS IN MULTI-USE BUILDINGS: INSURANCE, CONSTRUCTION AND DEVELOPMENT

HOT TOPICS IN MULTI-USE BUILDINGS: INSURANCE, CONSTRUCTION AND DEVELOPMENT HOT TOPICS IN MULTI-USE BUILDINGS: INSURANCE, CONSTRUCTION AND DEVELOPMENT Philip K. Glick, CPCU, RPLU Two Liberty Place 50 S. 16 th Street, Suite 3600 Philadelphia, PA 19102 P: 267-702-1374 C: 610-551-4734

More information

THE FOLLOWING ARE INSTRUCTIONS FROM THE FRONT SIDE OF SEAGATE PURCHASE ORDERS:

THE FOLLOWING ARE INSTRUCTIONS FROM THE FRONT SIDE OF SEAGATE PURCHASE ORDERS: THE FOLLOWING ARE INSTRUCTIONS FROM THE FRONT SIDE OF SEAGATE PURCHASE ORDERS: INSTRUCTIONS: Read this entire order form, including the incorporated terms and conditions located at http://www.seagate.com/about/legal-privacy/purchasing-and-pricing/purchase-orders-legal-overview/

More information

Ontario Automobile Policy (OAP 1)

Ontario Automobile Policy (OAP 1) Ontario Automobile Policy (OAP 1) Owner's Policy Approved by the Superintendent of Financial Services for use as the standard Owner's Policy on or after January 1, 2007. About This Policy This is your

More information

CHUBB INSURANCE COMPANY OF EUROPE SE

CHUBB INSURANCE COMPANY OF EUROPE SE CHUBB INSURANCE COMPANY OF EUROPE SE 106 Fenchurch Street, London EC3M 5NB, England Telephone: +44 (0) 20 7956 5000 Facsimile: +44 (0) 20 7956 5900 Website: www.chubb.com/uk EXCESS EMPLOYERS LIABILITY

More information

3. Contract Works Insurance (Public and Products Liability)

3. Contract Works Insurance (Public and Products Liability) Schedule 15A: Insurance Part 1 Required Insurances Sub-part 1 Design and Construction Phase The policies to be taken out by the Contractor, or caused to be taken out by the Major Sub-contractor, and maintained

More information

Motor Vehicle Insurance Policy Comprehensive Coverage 1 GENERAL CONDITIONS AGREEMENT

Motor Vehicle Insurance Policy Comprehensive Coverage 1 GENERAL CONDITIONS AGREEMENT Motor Vehicle Insurance Policy Comprehensive Coverage 1 GENERAL CONDITIONS AGREEMENT Under general coverage, conditions and exclusions of this policy and endorsement document Under general coverage, conditions

More information

Corporate Insurance Solutions Ltd BUSINESS INSURANCE CONSULTANTS

Corporate Insurance Solutions Ltd BUSINESS INSURANCE CONSULTANTS Terms of Business This Agreement is between You our client or potential client and Corporate Insurance Solutions Ltd and applies to all work that we carry out on your behalf. Corporate Insurance Solutions

More information

MINNESOTA STATE COLLEGES AND UNIVERSITIES General Insurance Requirements for Contractors & Vendors

MINNESOTA STATE COLLEGES AND UNIVERSITIES General Insurance Requirements for Contractors & Vendors Certificate of Liability Insurance, Form ACORD25: Following are the insurance requirements of the State of Minnesota acting through its Board of Trustees of the Minnesota State Colleges and Universities,

More information

Complete Professional Indemnity

Complete Professional Indemnity Allianz Insurance plc plc Complete Professional Indemnity Policy Details (including Policy Summary pages 1 4) Insurance Brokers Policy Summary This is a Policy Summary only and does not contain full terms

More information

Direct Marketing. INSU 2500 Chapter 5 Insurance Occupations. E-Commerce. Insurance Marketing and Distribution

Direct Marketing. INSU 2500 Chapter 5 Insurance Occupations. E-Commerce. Insurance Marketing and Distribution Direct Marketing INSU 2500 Chapter 5 Insurance Occupations Sept. 12 & 14 Insurance companies sell insurance directly to consumers. No middleman; no branch operation. Examples: Mail solicitations, E-commerce

More information

Australian Accounting Standards Board (AASB)

Australian Accounting Standards Board (AASB) FACT SHEET September 2011 1023 General Insurance Contracts (This fact sheet is based on the standard as at 1 January 2011.) Important note: This standard is an Australian specific standard with no international

More information

An introduction to insurance cover for businesses

An introduction to insurance cover for businesses An introduction to insurance cover for businesses All businesses need to be insured against potential risks such as contractual disputes, accidental damage, fire, flood or theft and claims for negligence.

More information

PRIORITY. Professional Indemnity Insurance Contract

PRIORITY. Professional Indemnity Insurance Contract PRIORITY Professional Indemnity Insurance Contract Between AC&E PI and Liability Underwriters (Pty) Ltd acting as underwriting managers on behalf of the New National Assurance Company Ltd and hereafter

More information

QBE European Operations Professional liability

QBE European Operations Professional liability QBE European Operations Professional liability Disclosure of insurance details revisited QBE Professional Liability Disclosure of insurance details revisited/november 2013 1 Disclosure of insurance details

More information