Why is it important to notify all Known Claims or Circumstances to your insurance company with in the current policy period?

A 'known circumstance' could be defined as any fact, situation or circumstance, which a  reasonable person in the insured’s professional position would have thought, might result in someone making a claim against him/her. Therefore if a claim arises after the inception date of the policy from a fact, situation or circumstance that the insured knew or should have known, at the time of the  commencement of the policy that might give rise to a claim, it would normally be excluded as it arose from a ‘known  circumstance’.  

By notifying all known claims and circumstances that might give rise to a claim, during a policy period, an insured can get the benefit of their statutory rights under Section 40(3) of the Insurance Contracts Act 1984 (the Act). Section 40(3) provides an insured with statutory rights to notify a circumstance or insured, to an insurer, during the currency of the policy. If a claim eventuates against an insured from the notified circumstances, then the insurer cannot deny indemnity, despite the fact that the claim arose outside the period of insurance. Therefore, any fact, situation or circumstance, which a reasonable person in the    insured's professional position would have thought might result in someone making a claim against them, should be notified to their current insurer. 

Why it’s not safe to provide a Professional Service to your clients without Professional Indemnity Insurance

As a professional providing a service to the public, you are putting yourself out there. You are also human and mistakes do happen. In the event that you, or one of your employees unintentionally makes an error, or have an omission in your work and you could be held liable for in the event your client or third party suffers a financial loss.

Even if you think this is something that is not possible for you, the truth that it is no business is immune. Things do happen and generally when you least expect it.

3 Major Advantages of using an insurance broker vs. an Insurance Company

When looking to purchase insurance, it can be confusing as to what company is the best to buy your insurance from. If that isn't bad enough, you also have to decide whether or not to buy your insurance from an insurance broker or an insurance company. There may be differing opinions when it comes to this because people have had different experiences.

 WARNING: Not all insurance policies are created equal… 

“… please don’t burden yourself or your family with the financial stress of not having the right insurance protection… especially when the best professional advice that you can rely on is only a FREE toll phone call away.”

The importance of understanding the extent of your policy coverage and it’s limitations is vital to ensure that you are adequately protected in the event a claim should arise. It goes without saying that the ensuring that taking the time to ensure that you have the right policy in place, with terms and conditions that meet your needs, will prove to be invaluable you in the event of a claim.