Professional Indemnity Policy Accountants - Allianz …...Professional Indemnity Policy Accountants Policy Document. 39149 POL785 Pro Indemnity_Account_cov_D6.indd 1POL785 0618 Allianz

Professional Indemnity Policy AccountantsPolicy Document.

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• promotesbettercommunicationbetweeninsurersandcustomerswhichwillleadtobetterpublicunderstandingofinsurancetoallowcustomerstomakeinformedchoices,and

• outlinesgoodstandardsofpracticeandservicetobemetbyinsurerstoenhancetheirreputationforrespondingefficientlytotheircustomers’needs.

(a) Disputeresolutionprocess

Wewilldoeverythingpossibletoprovideaqualityservicetoyou.However,werecognisethatoccasionallytheremaybesomeaspectofourserviceoradecisionwehavemadethatyouwishtoqueryordrawtoourattention.

WehaveaComplaintsandDisputeResolutionProcedurewhichundertakestoprovideananswertoyourcomplaintwithinfifteen(15)workingdays.

Ifyouwouldliketomakeacomplaintoraccessourinternaldisputeresolutionservicepleasecontactournearestofficeandasktospeaktoadisputeresolutionspecialist.

(b) Contactforassistanceorconfirmationofcover

Ifyouneedtoconfirmanypolicytransactionorclarifyanyoftheinformationcontainedinthispolicydocumentorifyouhaveanyotherqueries,pleasecontactanyofourofficesorrefertoourwebsiteatwww.allianz.com.au.

(c) Ifthisinsurancehasbeenissuedthroughaninsuranceintermediary

Ifyourpolicyhasbeenarrangedthroughouragent,orabrokerwhoisactingunderanagencyarrangementsuchasabinderwithus,thentheyareactingasouragentandnotasyouragent.Theywilltellyouwhenthisisthecase.

Ifyourpolicyhasbeenarrangedbyabroker,otherthanabrokeractingundersuchanagencyarrangementwithus,thenthebrokerisactingasyouragent.

Wherethispolicyhasbeenarrangedthroughanintermediaryacommissionmaybepayablebyustothemforarrangingtheinsurance.

PrivacyThisdocumentsetsouthowweuse,collectanddisclosepersonalinformationaboutyou.Itsupplementsanyinformationaboutprivacyintheinsurancedocumentationwehaveprovidedorwillprovidetoyou.FurtherinformationisinourPrivacyPolicyavailableatwww.allianz.com.au

AtAllianz,ourpriorityistoprotecttheprivacyofyourpersonalinformation.WedothisbyhandlingpersonalinformationinaresponsiblemannerandinaccordancewiththePrivacyAct1988(Cth).

GeneralInformationTheGeneralInformationsetoutbelowisprovidedforyourinformationonly.Itdoesnotformpartoftheinsurancecontractwithyou,andisnotpartofthepolicy.NothingcontainedintheGeneralInformationimposescontractualobligationsonyou,orcreatescontractualrights.Thesearecontainedinthepolicyandanyendorsement.

ClaimsMadeThispolicyoperatesona‘claimsmade’basis.Thismeansthatthepolicycoversyouforclaimsmadeagainstyouduringtheperiodofinsurance.

Thepolicydoesnotprovidecoverinrelationto:

• acts,errorsoromissionsactuallyorallegedlycommittedpriortotheretroactivedateofthepolicy(ifsuchadateisspecified);

• claimsmadeaftertheexpiryoftheperiodofcovereventhoughtheeventgivingrisetotheclaimmayhaveoccurredduringtheperiodofcover;

• claimsnotifiedorarisingoutoffactsorcircumstancesnotified(orwhichoughtreasonablytohavebeennotified)underanypreviouspolicy;

• claimsmade,threatenedorintimatedagainstyoupriortothecommencementoftheperiodofcover;

• factsorcircumstancesofwhichyoufirstbecameawarepriortotheperiodofcover,andwhichyoukneworoughtreasonablytohaveknownhadthepotentialtogiverisetoaclaimunderthispolicy;

• claimsarisingoutofcircumstancesnotedontheproposalformforthecurrentperiodofcoveroronanypreviousproposalform.

Whereyougivenoticeinwritingtousofanyfactsthatmightgiverisetoaclaimagainstyouassoonasreasonablypracticableafteryoubecomeawareofthosefactsbutbeforetheexpiryoftheperiodofcover,youmayhaverightsunderSection40(3)oftheInsuranceContractsAct1984tobeindemnifiedinrespectofanyclaimsubsequentlymadeagainstyouarisingfromthosefactsnotwithstandingthattheclaimismadeaftertheexpiryoftheperiodofcover.Anysuchrightsariseunderthelegislationonly.Thetermsofthepolicyandtheeffectofthepolicyisthatyouarenotcoveredforclaimsmadeagainstyouaftertheexpiryoftheperiodofcover.

GeneralInsuranceCodeofPracticeWeareasignatorytotheGeneralInsuranceCodeofPractice.TheCodeaimstoraisestandardsofpracticeandserviceintheinsuranceindustry.It:

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ThecountriestowhichthisinformationmaybedisclosedwillvaryfromtimetotimebutmayincludeCanada,Germany,NewZealandandothercountriesinwhichtheAllianzGrouphasapresenceorengagessubcontractors.

Weregularlyreviewthesecurityofoursystemsthatareusedforsendingpersonalinformationoverseas.Anyinformationwedisclosetooverseasrecipientsmayonlybeusedforthepurposesofcollectiondetailedaboveandsystemadministration.

AccesstoYourPersonalInformationandComplaints

Youmayaskforaccesstothepersonalinformationweholdaboutyouandseekcorrectionbycalling1300360529EST8am6pm,MondaytoFriday.

OurPrivacyPolicycontainsdetailsabouthowyoumaymakeacomplaintaboutabreachoftheprivacyprinciplescontainedinthePrivacyAct1988(Cth)andhowwedealwithcomplaints.OurPrivacyPolicyisavailableatwww.allianz.com.au.

TelephoneCallRecording

Wemayrecordincomingand/oroutgoingtelephonecallsfortrainingorverificationpurposes.Ifyourequireaccesstoarecordedcall,acopyorappropriateaccesswillbeprovidedbyuswhereavailable.Itshouldbenotedthatnotallcallsarerecordedandthereforenotallcallswillbeaccessibleuponrequest.

YourDutyofDisclosureBeforeyouenterintoacontractofinsurancewithus,youhaveadutyundertheInsuranceContractsAct1984todisclosetouseverymatterthatyouknow,orcouldreasonablybeexpectedtoknow,isrelevanttoourdecisionwhethertoaccepttheriskoftheinsuranceand,ifso,onwhatterms.

Youhavethesamedutytodisclosethosematterstousbeforeyourenew,extend,varyorreinstatethecontract.

Thisdutyofdisclosureappliesuntilthecontractisenteredinto(orrenewed,extended,variedorreinstatedasapplicable).Wemayprovidefurtherinformationonyourdutypriortoanyrenewal,extension,variationorreinstatement.

Yourdutyhoweverdoesnotrequiredisclosureofanymatter:

• thatdiminishestherisktobeundertakenbyus;or

• thatisofcommonknowledge;or

• thatweknowor,intheordinarycourseofourbusinessasaninsurer,oughttoknow;or

• astowhichcompliancewithyourdutyiswaivedbyus.

HowWeCollectYourPersonalInformation

Weusuallycollectyourpersonalinformationfromyouoryouragents.Wemayalsocollectitfromouragentsandserviceproviders;otherinsurersandinsurancereferencebureaus;peoplewhoareinvolvedinaclaimorassistusininvestigatingorprocessingclaims,includingthirdpartiesclaimingunderyourpolicy,witnessesandmedicalpractitioners;thirdpartieswhomaybearranginginsurancecoverforagroupthatyouareapartof;lawenforcement,disputeresolutionbodiesandstatutoryandregulatorybodies;marketinglistsandindustrydatabases;andpubliclyavailablesources.

WhyWeCollectYourPersonalInformation

Wecollectyourpersonalinformationtoenableustoprovideourproductsandservices,includingtoprocessandsettleclaims;offerourproductsandservicesandtheproductsandservicesofourrelatedcompanies,brokers,intermediariesandbusinesspartnersthatmayinterestyou;andconductmarketorcustomerresearchandtodeterminethoseproductsorserviceswhichmayparticularlysuityou.Youcanchoosenottoreceiveproductorserviceofferingsfromusorourrelatedcompanies,brokers,intermediariesand/orourbusinesspartnersbycallingtheAllianzDirectMarketingPrivacyServiceLineon1300360529EST8amto6pmMondaytoFridayorgoingonlinetoourwebsite’sPrivacysectionatwww.allianz.com.au

WhoDoWeDiscloseYourPersonalInformationTo?

Wediscloseyourpersonalinformationtopeoplewhoassistusinofferingandprovidingourproductsandservices,conductingmarketorcustomerresearch(includingtodeterminethoseproductsorserviceswhichmayparticularlysuityou),orinactivitiesrelatedtocarryingonourinsurancebusiness,includinginsurers,insuranceintermediaries,reinsurers,insurancereferencebureaus,partieswithwhomwehavearelationshiporinsuranceschemeinplacewiththemunderwhichyoupurchasedyourpolicy(suchasafinancierormotorvehiclemanufacturerand/ordealer)andothers;toourintermediariesorbusinesspartnerstoenablethemtooffertheirproductsandservicestoyou;asrequiredbylaworgovernment,lawenforcementbodiesordisputeresolutionbodies.

DisclosureOverseas

YourpersonalinformationmaybedisclosedtoothercompaniesintheAllianzGroup,businesspartners,reinsurersandserviceprovidersthatmaybelocatedinAustraliaoroverseas.


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Non-disclosure

Ifyoufailtocomplywithyourdutyofdisclosure,wemaybeentitledtoreduceourliabilityunderthecontractinrespectofaclaim,cancelthecontractorboth.

Ifyournon-disclosureisfraudulent,wemayalsohavetheoptionofavoidingthecontractfromitsbeginning.


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Table of contentsProfessional Indemnity PolicyPart 1 – What We Insure You For 2

1. InsuringClause 2

2. DefenceCosts 2

3. LimitofIndemnity 2

4. Deductible 3

5. ExtentofIndemnity 3

6. MultipleClaims 3

Part 2 – Automatic Extensions 4

7. Consultants,Sub-contractorsandAgents 4

8. ContinuousCover 4

9. InsurancePreparationCosts 4

10. CourtAttendance 4

11. DomesticPartners 4

12. ExtendedNotificationPeriod 4

13. EstatesandLegalRepresentatives 4

14. FormerSubsidiary,FormerPrincipalsetc 5

15. FraudandDishonesty 5

16. InquiryCosts 5

17. JointVentures 5

18. LossofDocuments 5

19. MitigationCosts 5

20. NewlyAcquiredorCreatedSubsidiaries 5

21. PublicRelationsExpenses 6

22. Run-OffCoverUntilExpiryofPeriodofCover 6

23. Imputation 6

24. ExternalAppointments 6

25. ExternalDisputeResolution 6

26. LiabilityforBreachofAuditingStandardsor theTaxAgentServiceAct 6

Part 3 – Optional Extensions 7

27. BreachofPrivacy:ResponseCostsandFinesandPenalties 7

28. FidelityInsurance 7

29. Subsidiaries–Pre-AcquisitionLiability 7

30. JointVentures 7

31. PreviousBusiness 7

32.Run-offafterMerger,TakeoverorSale 7

33.IncomingContinuousCover 8

Part 4 – Exclusions 8

34. Asbestos 8

35. AssociatedPersonsorEntities 8

36. ContractualLiability/GuaranteeorWarranty 8

37. FinesandPenalties 8

38. FraudandDishonesty 9

39. Insolvency 9

40. ObligationtoEmployees 9

41. RadioactivityandNuclearRisk 9

42. PriorClaims/Circumstances 9

43. RetroactiveDate 9

44. TradingDebts 9

45. USAJurisdiction 9

46. WarandTerrorism 9

47. TaxSchemes 9

48. FinancialPlanning 9

Part 5 – Claims Conditions 10

49. Notification 10

50. Co-operation 10

51. Mitigation 10

52. OurConsent 10

53. DefenceandSettlement 10

54. Disputes 10

55. ElectiontoContest 10

56. Allocation 10

Part 6 – Other Conditions 11

57. Assignment 11

58. Cancellation 11

59. ChangeofControl 11

60. Currency 11

61. GST 11

62. Plurals,HeadingsandTitles,Interpretation 11

63. ScopeandGoverningLaw 11

64. Subrogation 11

65. AlterationtoRisk 12

Part 7 – Definitions 12

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ProfessionalIndemnityPolicyWe,AllianzAustraliaInsuranceLimited,ABN15000122850,AFSLicenceNo.234708willprovideinsuranceinaccordancewiththetermsofthepolicy.

Thepolicywording,endorsementsandthescheduleshallbereadtogetherasonecontract(the“policy”).

Whenreadingthispolicy,pleasenotethatsomewordsandphraseshavedefinedmeanings.ThelistofdefinedwordsandphrasesisincludedinPart7ofthepolicy.Thedefinedwordsandphrasesarehighlightedinblue.

Headingsaredescriptiveonlyandnotdefinedterms.

Part1–WhatWeInsureYouFor1. InsuringClause

1.1 General

Weagreetoindemnifyyouagainstallcivilliabilityfordamagesandawardsofclaimants’costsarisingfromanyclaimthat:

(a) arisesfromtheprovisionbyyouorfailurebyyoutoprovideprofessionalservices;and

(b) isfirstmadeagainstyouduringtheperiodofcover.

1.2 Thecivilliabilityreferredtoinsubclause1.1includes,butisnotrestrictedtocivilliabilityarisingoutof:

(a) anyactualorallegedmisleadingordeceptiveconductatlaworundertheCompetitionandConsumerAct2010(Cth),TradePracticesAct1974(Cth),AustralianSecuritiesandInvestmentsCommissionAct2001(Cth),CorporationsAct2001(Cth)oranyequivalentprovisionsintheStateFairTradingActs,ortheirrespectivesuccessorlegislation;

(b) defamation,slanderorlibel;

(c) anybreachofintellectualorindustrialpropertyortradesecretwhetherregisteredorunregistered,includingbutnotlimitedtotrademarks,designs,patentsandcopyright;

(d) breachofprivacyordutyofconfidentiality;

(e) anymonetarycompensationinrespectoffindingsrawardsrenderedagainstyoubyanASICapprovedexternaldisputeresolutionschemeandmadeinaccordancewiththatscheme’stermsofreference.

2. DefenceCosts

2.1 General

Weagreetopayanydefencecosts:

(a) thatweincur;or

(b) thatyouincurwithourwrittenconsent.

2.2 Advancementofdefencecosts

Wewilladvancedefencecostscoveredbythispolicypromptlyafterdetailedinvoicesforthosecostsarereceivedbyus.However,anydefencecoststhatareactuallypaidshallberepayabletousbyyouintheeventandtotheextentthatitisdeterminedunderthepolicythatyouwerenotentitledtoapaymentofdefencecosts.

Exclusion38‘FraudandDishonesty’willnotapplyuntiltheconductisestablishedbyfinaladjudicationofajudicialorarbitraltribunalorbyawrittenadmissionbyyou.

3. LimitofIndemnity

3.1 General

Weareonlyliabletoindemnifyyouforanamountoramountsnogreaterthanthelimitofindemnityforanyoneclaimasstatedintheschedule.

3.2 Defencecostsarepayableinadditiontothelimitofindemnity.However,themaximumamountpayablebyusunderthispolicyinrespectofdefencecostsistheequivalentofthelimitofindemnity.

3.3 Intheeventthattheamountpaidbyyouoronyourbehalftodisposeofaclaimexceedsthepolicy’slimitofindemnityforanyoneclaim,thenthispolicyshallonlycoverthesameproportionofdefencecostsasthispolicy’slimitofindemnityforanyoneclaimbearstothetotalamountpaidtodisposeoftheclaim(exclusiveofdefencecosts).

Ifwehavepaidoradvanceddefencecostsinexcessofthisproportion,youmustreimburseusforsuchdefencecosts.

3.4 Whereweconsiderthatthelimitofindemnityislikelytobeexhaustedbythepaymentofamountspayableunderthispolicywemay,inourabsolutediscretion,electtopayyoutheamountwhichexhauststhelimitofindemnity.Ifweelecttodothis,weshallhavenofurtherobligationtopayanyfurtherdefencecosts.

3.5 Whereaclaimismadeagainstmorethanoneinsuredpersonorentityunderthispolicy,thisshallnotoperatetoincreasethetotalamountpayablebyusunderthispolicy.


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3.6 Unlessotherwisestatedinthepolicy:

(i) allamountspayablebyusunderthispolicyshallbeinclusiveofthelimitofindemnityanyoneclaimandnotinadditiontothelimitofindemnityanyoneclaim;

(ii) allamountspaidbyusunderthispolicyshallerodethelimitofindemnityintheaggregate.

(iii) allsublimitsofindemnity,whereprovidedinthepolicy,areinclusiveofthelimitofindemnityanyoneclaimandnotinadditiontothelimitofindemnityanyoneclaim;

(iv) ifthescheduleprovidesforalimitofindemnitythatishigherintheaggregatethanforanyoneclaim,thenreferencesinthispolicytothelimitofindemnityshallonlybeinrespectofthelimitofindemnityforanyoneclaim.

4. Deductible

Unlessotherwisestatedinthepolicy:

(a) wewillbeliableonlyforamountspayableunderthepolicywhichexceedthedeductible;

(b) thedeductibleisnotpartofthelimitofindemnity;

(c) thedeductibleistobebornebytheinsuredandistoremainuninsured;

(d) thedeductibleappliestoallamountspayableunderthepolicy,exceptwherethedeductibleisexpressedinthescheduleas‘exclusiveofcosts’;

(e) ifthedeductibleisexpressedinthescheduleas‘exclusiveofcosts’then:

(i) youmustbearalldefencecostsuptothelimitofthedeductibleiftheclaimmadeagainstyouisforanamountthatislessthanthedeductible;

(ii) otherwisethedeductibleshallnotapplytodefencecostspayableunderthepolicy;

(f) anycostsandexpensesthatweincurtodeterminewhetherweareliabletoindemnifyyouunderthispolicyarenotsubjecttothedeductible;

(g) asingledeductibleshallapplytoeachclaimoreachcoverprovidedbyanExtension.

5. ExtentofIndemnity

5.1 Extensions

Ourliabilitytoindemnifyyouisextendedby:

(a) theautomaticextensionssetoutinPart2ofthispolicyunlessspecificallyexcludedintheschedule;and

(b)anyoptionalextensionssetoutinPart3ofthispolicythatarespecificallyincludedintheschedule;and

(c) anyextensionsincorporatedbyendorsementtothispolicy.

5.2 ExclusionsandConditions

However,unlessexpresslyprovidedotherwise,ourliabilitytoindemnifyyouunderthispolicyandanyendorsementissubjectto:

(a) thelimitofindemnityanddeductiblesetoutinclauses3and4ofthispolicy;and

(b) theexclusionsfromliabilitysetoutinPart4ofthispolicy;and

(c) theclaimsconditionssetoutinPart5ofthispolicy;and

(d) theotherconditionssetoutinPart6ofthispolicy;and

(e) anyexclusions,conditionsorotherprovisionsincorporatedbyendorsementtothispolicy.

6. MultipleClaims

(a) Allcausallyconnectedorinterrelatedacts,errorsoromissionsshalljointlyconstituteasingleact,errororomissionunderthispolicy.

(b)Whereasingleact,errororomissiongivesrisetomorethanoneclaim,allsuchclaimsshalljointlyconstituteoneclaimunderthispolicy.


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Part2–AutomaticExtensions7. Consultants,Sub-ContractorsandAgents

Weagreetoindemnifyyouagainstcivilliabilityfordamagesandawardsofclaimants’costsinrespectofanyclaimfirstmadeagainstyouduringtheperiodofcover,arisingfromtheprovisionoforfailuretoprovideprofessionalservicesbyanyconsultant,sub-contractororagentforwhichyouarelegallyliable.

Wewillalsoindemnifyanysuchconsultant,subcontractororagent,providedthattherelevantact,errororomissiongivingrisetotheclaimoccurred:

(a) inthecourseoftheconductbytheconsultant,sub-contractororagentofyourprofessionalserviceswhilstactingforyouoronyourbehalf;and

(b) atthetimewhentheconsultant,sub-contractororagentwasunderyourdirectcontrolandsupervision.

8. ContinuousCover

Weagreetoindemnifyyouagainstcivilliabilityarisingfromanyclaimthatarisesoutoffactswhichfirstbecameknowntoyoupriortotheperiodofcoverwhere:

(a) wewereyourprofessionalindemnityinsureratthetimethefactsfirstbecameknowntoyou(the“previouspolicyperiod”)andhavecontinuedtobeyourprofessionalindemnityinsurerfromthenuntiltheactualdateofnotificationofclaim;and

(b) butforyourfailuretonotifyusofthefactsduringthepreviouspolicyperiod,youwouldhavebeenentitledtoindemnityunderapreviouspolicyissuedbyus;and

(c) butfortheExclusion42‘PriorClaims/Circumstances’youwouldbeentitledtoindemnityunderthispolicy;and

(d) youhavenotcommittedorattemptedtocommitfraudulentnon-disclosureorfraudulentmisrepresentation.

Weareonlyliabletoindemnifyyoutotheextentthatweareobligedtoindemnifyyouunderthetermsandconditionsofthepolicyineffectduringthepreviouspolicyperiod,butinnocircumstancesshallthecovergrantedbythisExtensionbegreaterthanthetermsandconditionsofthepolicyineffectduringthisperiodofcover(includingthelimitofindemnityanddeductible).

9. InsurancePreparationCosts

Wewillpayupto$25,000intheaggregateduringtheperiodofcoverforreasonableprofessionalfeesandsuchotherexternalexpensesincurredbyyouinconnectionwiththepreparationofanyinsuranceinformationorsimilarmaterialatourrequestconcerningamatteryouhavenotifiedtousunderthispolicybutonlywherethatmatterisindemnifiedbyusunderthispolicy.

Thecoverprovidedunderthisextensionoperatesinadditiontothelimitofindemnityanyoneclaimanddoesnoterodetheaggregatelimitofindemnity.

10. CourtAttendance

Wewillpaytheinsured$500perpersonforeachdaythatanofficeroremployeeislegallycompelledtoanddoesattendcourttogiveevidenceinconnectionwithaclaim.ThedeductibledoesnotapplytothisExtension.

11. DomesticPartners

Thedefinitionofyouisextendedtoincludeanyspouseorcivilpartnerofanofficeroremployeeinrespectofaclaimarisingfromtheconductofsuchofficeroremployeeonlyandinwhichthespouseorpartnerhadnoinvolvementandisduesolelytothespouseorcivilpartner’sstatusassuch.

12. ExtendedNotificationPeriod

12.1 Ifthispolicyisneitherrenewednorreplacedwithprofessionalindemnityinsuranceatexpiryoftheperiodofcover,thenyouhaveuntiltheearlierof:

(a) suchtimethatyoueffectanotherprofessionalindemnityinsurancepolicy;or

(b) aperiodofsixty(60)dayscommencingonthedayimmediatelyfollowingexpiryoftheperiodofcover;

duringwhichtonotifyusinwritingofanyclaimfirstmadeagainstyou.

12.2 Theextensionofcoverunderclause12.1issubjecttoeachofthefollowingconditionsbeingsatisfied:

(a) wewilltreattheclaimasifithadbeenmadeagainstyouandnotifiedtousduringtheperiodofcover;

(b) coverageaffordedhereunderdoesnotreinstateorincreasethelimitofindemnityorextendtheperiodofcover;and

(c) coverageaffordedhereunderwillonlyapplytoacts,errorsoromissionscommittedorallegedtohavebeencommittedbyyou:

(i) beforetheendoftheperiodofcover;and

(ii) aftertheretroactivedatespecifiedintheschedule.

13. EstatesandLegalRepresentatives

Thedefinitionofyouisextendedtoincludeyourlegalrepresentatives,heirs,assignsorestatesintheeventofyourdeath,incapacity,insolvencyorbankruptcybutonlytotheextentthatwewouldotherwisehavebeenliabletoindemnifyyou.


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Part2–AutomaticExtensions7. Consultants,Sub-ContractorsandAgents

Weagreetoindemnifyyouagainstcivilliabilityfordamagesandawardsofclaimants’costsinrespectofanyclaimfirstmadeagainstyouduringtheperiodofcover,arisingfromtheprovisionoforfailuretoprovideprofessionalservicesbyanyconsultant,sub-contractororagentforwhichyouarelegallyliable.

Wewillalsoindemnifyanysuchconsultant,subcontractororagent,providedthattherelevantact,errororomissiongivingrisetotheclaimoccurred:

(a) inthecourseoftheconductbytheconsultant,sub-contractororagentofyourprofessionalserviceswhilstactingforyouoronyourbehalf;and

(b) atthetimewhentheconsultant,sub-contractororagentwasunderyourdirectcontrolandsupervision.

8. ContinuousCover


(a) wewereyourprofessionalindemnityinsureratthetimethefactsfirstbecameknowntoyou(the“previouspolicyperiod”)andhavecontinuedtobeyourprofessionalindemnityinsurerfromthenuntiltheactualdateofnotificationofclaim;and

(b) butforyourfailuretonotifyusofthefactsduringthepreviouspolicyperiod,youwouldhavebeenentitledtoindemnityunderapreviouspolicyissuedbyus;and



Weareonlyliabletoindemnifyyoutotheextentthatweareobligedtoindemnifyyouunderthetermsandconditionsofthepolicyineffectduringthepreviouspolicyperiod,butinnocircumstancesshallthecovergrantedbythisExtensionbegreaterthanthetermsandconditionsofthepolicyineffectduringthisperiodofcover(includingthelimitofindemnityanddeductible).

9. InsurancePreparationCosts

Wewillpayupto$25,000intheaggregateduringtheperiodofcoverforreasonableprofessionalfeesandsuchotherexternalexpensesincurredbyyouinconnectionwiththepreparationofanyinsuranceinformationorsimilarmaterialatourrequestconcerningamatteryouhavenotifiedtousunderthispolicybutonlywherethatmatterisindemnifiedbyusunderthispolicy.

Thecoverprovidedunderthisextensionoperatesinadditiontothelimitofindemnityanyoneclaimanddoesnoterodetheaggregatelimitofindemnity.

10. CourtAttendance

Wewillpaytheinsured$500perpersonforeachdaythatanofficeroremployeeislegallycompelledtoanddoesattendcourttogiveevidenceinconnectionwithaclaim.ThedeductibledoesnotapplytothisExtension.

11. DomesticPartners

Thedefinitionofyouisextendedtoincludeanyspouseorcivilpartnerofanofficeroremployeeinrespectofaclaimarisingfromtheconductofsuchofficeroremployeeonlyandinwhichthespouseorpartnerhadnoinvolvementandisduesolelytothespouseorcivilpartner’sstatusassuch.

12. ExtendedNotificationPeriod

12.1 Ifthispolicyisneitherrenewednorreplacedwithprofessionalindemnityinsuranceatexpiryoftheperiodofcover,thenyouhaveuntiltheearlierof:

(a) suchtimethatyoueffectanotherprofessionalindemnityinsurancepolicy;or

(b) aperiodofsixty(60)dayscommencingonthedayimmediatelyfollowingexpiryoftheperiodofcover;

duringwhichtonotifyusinwritingofanyclaimfirstmadeagainstyou.

12.2 Theextensionofcoverunderclause12.1issubjecttoeachofthefollowingconditionsbeingsatisfied:

(a) wewilltreattheclaimasifithadbeenmadeagainstyouandnotifiedtousduringtheperiodofcover;

(b) coverageaffordedhereunderdoesnotreinstateorincreasethelimitofindemnityorextendtheperiodofcover;and

(c) coverageaffordedhereunderwillonlyapplytoacts,errorsoromissionscommittedorallegedtohavebeencommittedbyyou:

(i) beforetheendoftheperiodofcover;and

(ii) aftertheretroactivedatespecifiedintheschedule.

13. EstatesandLegalRepresentatives

Thedefinitionofyouisextendedtoincludeyourlegalrepresentatives,heirs,assignsorestatesintheeventofyourdeath,incapacity,insolvencyorbankruptcybutonlytotheextentthatwewouldotherwisehavebeenliabletoindemnifyyou.


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18.2 Yourobligationtonotifyus

Youmustnotifyusofthelossofdocumentsassoonaspracticableafteryoudiscoverthelossandinanyeventwithin30days.

18.3 Approvalofbillsoraccounts

Onceyouprovideuswithbillsoraccounts,wemayeither:

(a) indemnifyyou;or

(b)nominateacompetentpersontoreviewthebillsoraccounts.

Ifwenominateacompetentperson,youmustnotifyuswhetherornotyouapproveofournominee.

18.4 Deductible

Notwithstandingclause4,youdonothavetobearthedeductibleinrespectofcostsandexpensescoveredbythisclause.

18.5 Meaningof‘lostdocuments’

Forpurposesofthisclause,‘lostdocuments’meansdocumentsthathavebeendestroyed,damagedormislaidandcannotbefoundafterdiligentsearch.

19. MitigationCosts19.1 Weagreetoindemnifyyouagainstmitigationcosts.

19.2 Weareonlyliabletoindemnifyyouunderclause19.1if:

(a) youwerefirstawareduringtheperiodofcoverofthefacts,circumstances,actsoromissionswhichhavegivenrisetothemitigationcosts(andwhichwouldhavegivenrisetoaclaimbutforthemitigationcosts);and

(b) wearenotifiedwithin15daysofyourdecisiontoincurmitigationcosts;and

(c) youestablishtoourreasonablesatisfactionthatthereisaprobabilitythat:

(i) aclaimwouldhavebeenmadeagainstyouandthatyouwouldhavebeenliableforthatclaimintheabsenceofyourcarryingoutthemitigationorrectificationthesubjectofthemitigationcosts;and

(ii) theamountofyourliabilityfortheclaimwouldhavebeengreaterthanthemitigationcosts.

19.3 Coverformitigationcostsshallnotexceed10%ofthelimitofindemnityanyoneclaim.

20. NewlyAcquiredorCreatedSubsidiariesWeagreetoindemnifyanysubsidiarythatyouacquireorcreateduringtheperiodofcoveragainstcivilliabilityfordamagesandawardsofclaimants’costsarisingfromanyclaimfirstmadeagainstthesubsidiaryuptotheearlierof:

14. FormerSubsidiary,FormerPrincipals,etc

14.1 Thedefinitionofsubsidiaryisextendedtoincludeanyformersubsidiary,butonlyinrespectoftheformersubsidiary’sconductwhileitwasstillyoursubsidiary.

14.2 Thedefinitionofyouisextendedtoincludeanyformerprincipal,officeroremployee,butonlyinrespectoftheirconductwhiletheywerestillyourprincipal,officeroremployee.

15. FraudandDishonesty

Weagreetoindemnifyyouagainstcivilliabilityarisingfromanyclaimthatisfirstmadeagainstyouduringtheperiodofcover,inrespectofanydishonest,fraudulent,maliciousorrecklessactoromissioncommittedorallegedtohavebeencommittedbyanyotherpersonorentitycoveredbythispolicyintheconductofyourprofessionalservices.

WewillnotprovideindemnityunderthisExtension:

(a) toanyinsuredpersonorentitycommittingorcondoningtheact,omissionorbreachthatwouldotherwisehaveresultedinExclusion38‘FraudandDishonesty’applying;

(b) foranylossofcurrency.

16. InquiryCosts

Weagreetoindemnifyyouforinquirycostsuptoanamountnotexceeding$500,000intheaggregatefortheperiodofcover,whichshallbepartofandnotinadditiontothelimitofindemnity.

17. JointVentures

Weagreetoindemnifyyouagainstcivilliabilityfordamagesandawardsofclaimants’costsarisingfromanyclaimfirstmadeagainstyouduringtheperiodofcover,inrespectoftheprovisionoforfailuretoprovideprofessionalservicesbyanyjointventureofwhichyouareapart,providedhoweverthat:

(a) thisExtensionshallindemnifyyouforyourindividualcivilliabilityinrespectofsuchjointventure,butnotforyourjointcivilliability;and

(b) weshallnotbeliabletopayacontributiontoanyinsurerofanyotherparticipantinsuchjointventure.

18. LossofDocuments18.1 General

Weagreetoindemnifyyouagainstcostsandexpensesthatyouincurinreplacingorrestoringlostdocumentsforwhichyouarelegallyresponsiblewhereyoufirstdiscoverthelossduringtheperiodofcover.However,weareonlyliabletoindemnifyyouagainstthosecostsandexpensesforwhichyouprovideuswithbillsoraccountsthatareapprovedundersubclause18.3.


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(i) sixty(60)daysaftersuchacquisitionorcreation;or

(ii) theexpiryoftheperiodofcover;

inrespectoftheprovisionoforfailuretoprovideprofessionalservices.

ThisExtensionwillonlyapplyinrespectofclaimsagainstthesubsidiaryarisingfromanact,errororomissionoccurringsubsequenttothedateofyouracquisitionorcreationofthesubsidiary.

ForthepurposesofthisExtension,thedefinitionofsubsidiaryisextendedtomeananyentitythatforthefirsttimeduringtheperiodofcover,theinsuredeitherdirectlyorindirectly:

(a) controlsthecompositionoftheboardofdirectors;

(b) controlsmorethanhalfofthevotingpower;or

(c) holdsmorethanhalfoftheissuedsharecapital.

ShouldtheinsuredrequirethepolicytobeextendedtoincludecoverforsubsidiarieswhichisnotautomaticallyprovidedbythisExtension,thentheinsuredshallprovideuswithanyadditionalinformationrequestedbyustopermitustoevaluatetheacceptabilityoftheadditionalexposure.Weshallhavetheright,butnottheobligation,tooffercoverfortheacquiredorcreatedsubsidiaryonsuchadditionalterms,conditions,exclusionsandadditionalpremiumaswemayrequire.

21. PublicRelationsExpenses

Wewillpaytoyouoronyourbehalfallpublicrelationsexpenses.

CoverunderthisExtensionshallnotexceed$50,000intheaggregatefortheperiodofcover.

22. Run-OffCoverUntilExpiryofPeriodofCover

Weagreethatintheeventthatyouceasetoexistoroperateorbecomeconsolidatedwith,mergedintooracquiredbyanyotherentityeitherbeforeorduringtheperiodofcover,thenthecoverageprovidedunderthispolicywithrespecttosuchpersonorentityshallcontinueuntiltheexpirydateoftheperiodofcover.

ThisExtensiononlyappliesinrespectofclaimsarisingfromanyact,errororomissionoccurringpriortotheeffectivedatethatyouceasedtoexistoroperateorwereconsolidatedwith,mergedintooracquiredbyanotherentity.

23. Imputation

Wheremorethanonepersonorentityisinsuredunderthispolicy:

(a) failurebyaninsuredpersonorentitytocomplywiththedutyofdisclosureundertheInsuranceContractsAct1984(C’wealth);or

(b) misrepresentationbyaninsuredpersonorentitytousbeforethepolicycommences;or

(c) failurebyaninsuredpersonorentitytocomplywithanytermsorconditionsofthispolicy,

doesnotprejudicetherightofanyotherinsuredpersonorentitytoindemnityunderthispolicy.However,thisclauseonlyappliesif:

(i) theotherinsuredpersonorentityisinnocentof,andhasnoknowledgeof,suchconduct;and

(ii) assoonaspracticableafterbecomingawareoftheconduct,theynotifyusofallfactsrelatingtosuchconduct.

24. ExternalAppointments

Weagreetoindemnifyyouagainstallcivilliabilityfordamagesandawardsofclaimants’costsinrespectofanyclaimfirstmadeagainstyouduringtheperiodofcover,arisingoutofanyappointmentsheldbyyouindividuallywhenactingastrustees,executors,receivers,managers,liquidators,administrators,directorsorsecretariesofproprietarycompaniesincludingpartialsecretarialworksuchassharetransfers,dividendorinterestwarrantsorcapitalredemptionwarrantsoranyotherdocumentcoveringthatpaymentofmoniesorasclerksormanagersofacharityprovidedthat:

(a) thefeesreceivedfromsuchappointmentsformpartoftheprofessionalservicesconductedonyourbehalf;or

(b) wherenofeeisreceived,theappointmentisheldonbehalfoforwiththeconsentoftheinsuredoranysubsidiarythereof.

25. ExternalDisputeResolution

WeagreetoindemnifyyouforamountsthatyouarelegallyliabletopaytoathirdpartyasmonetarycompensationinrespectoffindingsorawardsrenderedagainstyoubyanASIC-approvedexternaldisputeresolutionschemeandmadeinaccordancewiththatscheme’stermsofreference,subjecttotheapplicablelimitofindemnityorsublimitedlimitofindemnity.

26. LiabilityforBreachofAuditingStandardsortheTaxAgentServicesAct

Weagreetoindemnifyyouinrespectofyourstrictliabilitypenaltiesincurredbyyouorcompensationordersincurredbyyouasaresultofanyactualorallegedbreachof:

(a) AustralianAuditingStandardsinrelationtoauditsthatarethesubjectoftheprovisionsoftheCorporationsAct2001(Cth);or

(b) theTaxAgentServicesAct2009(Cth)(TASA).


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(c) youmustbearanydirectfinanciallossthatyouincurasaconsequenceofanyactoromissionoccurringafterthedatethatyoudiscover,orhavereasonablesuspicionof,thedishonest,fraudulent,maliciousorrecklessactoromission;

(d) allinterrelatedindividualdishonest,fraudulentormaliciousactsshallbedeemedtoconstituteasinglelossunderthisExtension.

CoverunderthisExtensionshallnotexceedtheFidelityGuaranteelimitofindemnityspecifiedinthescheduleintheaggregateduringtheperiodofcover.TheFidelityGuaranteedeductiblespecifiedinthescheduleshallapplytoeachdirectfinanciallosscoveredunderthisExtension.

29. Subsidiaries–Pre-AcquisitionLiability

Weagreetoindemnifyasubsidiaryagainstallcivilliabilityfordamagesandawardsofclaimantscostsarisingfromanyclaimthatisfirstmadeagainstthesubsidiaryduringtheperiodofcoverandisnotifiedtousduringtheperiodofcoverinrespectofanyact,errororomissioncommittedorallegedtohavebeencommittedbythesubsidiarybeforethedatethatyouacquiredthesubsidiarybutaftertheretroactivedatespecifiedinthescheduleinrespectofitsconductofthesameprofessionasyourprofessionalservices.

30. JointVentures

AutomaticExtension17‘JointVentures’shallbeextendedtoprovideindemnityforyourjointandindividualcivilliabilityarisingoutofanyclaimmadeagainstyouduringtheperiodofcover,butonlyinrespectofjointventure(s)namedintheschedule.

31. PreviousBusiness

Wherespecificallyagreedbyusbyendorsementtothispolicy,wewillextendindemnityforanyclaimmadeduringtheperiodofcoveragainstsuchpersonwhoisorbecomesaprincipal,orofficerofyoursinrespectofcivilliabilityfordamagesandawardsofclaimants’costsincurredorallegedtohavebeenincurredonthepartofsuchpersonintheconductofthesameprofessionasyourprofessionalbusinessbeforethatpersonjoinedyou.

32. Run-OffafterMerger,TakeoverorSale

Intheeventoftheinsuredbeingsubjecttoamerger,takeoverorsaleduringtheperiodofcover,thenonapplicationbytheinsurednolaterthan30daysafterthemerger,takeoverorsaleiscompletedorbecomeseffective,wemayextendcovertoapplyinrespectofclaimsfirstmadeagainstyou,orinquiriesfirstcommencedandinvolvingyou,foraperiodofupto84calendarmonthsfromtheexpirydateoftheperiodofcoverbutonlyforclaimsthatarisefromacts,errors,omissionsorotherconductoccurringpriortothedateofsuchmerger,takeoverorsale.

Part3–OptionalExtensions27. BreachofPrivacy:ResponseCostsandFinesandPenalties

27.1 Wewillpaythereasonableandnecessaryresponsecostsincurredbyyou,withourpriorconsent,tonotifyanyclient,thirdpartyorregulatorinaccordancewithyourlegalorregulatorydutiesasaresultofanyactual,allegedorsuspectedbreachofprivacyfirstdiscoveredbyyouandnotifiedtousduringtheperiodofcoverinrelationtopersonaldatacollectedduringtheprovisionofprofessionalservices,regardlessofwhetheraclaimhasbeenmadeagainstyou.

27.2 Forthepurposesofsubclause27.1,suchresponsecostsshallnotinclude:

(a) publicrelationsexpenses;

(b)wages,overtime,salariesorfeestoofficersoremployees;

(c) costtocomplywithanyinjunctiverelief.

27.3 NotwithstandingExclusion37‘FinesandPenalties’,wewillalsopayfinesandpenaltiespayablebyyouarisingfromsuchactual,allegedorsuspectedbreachofprivacyunderthePrivacy Act 1988 (Cth)amendmentstheretoorsimilarlegislation.

27.4 Forthepurposesofsubclause27.3,wewillnotbeliabletoindemnifyyouforanysuchfineorpenalty:

(a) forwhichwearelegallyprohibitedfromindemnifyingyouunderanylaw;

(b)basedupon,attributabletoorinconsequenceofanyrecklessnessoranywilful,intentionalordeliberatefailuretocomplywithanylawfulnoticeordirection,enforcementactionorproceedingunderanylegislation.

27.5 Coverunderthisclause27shallnotexceed$100,000intheaggregatefortheperiodofcover.

28. FidelityInsurance

Wewillindemnifytheinsuredfordirectfinanciallossdiscoveredandnotifiedtousduringtheperiodofcoverresultingfromanydishonest,fraudulentormaliciousactofanyemployeeorofficer,whethercommittedaloneorincollusionwithothers.

OurliabilitytoindemnifyyouunderthisExtensionissubjecttothefollowing:

(a) wearenotliabletoindemnifyyouunderthisExtensionifyoupersonallycommittedorcondonedanyact,omissionorbreachexcludedbyExclusion38‘FraudandDishonesty’;

(b) youmustbearanycostsorexpensesthatyouincurinestablishingorsubstantiatingtheexistenceoramountofthedirectfinancialloss;


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(c) youmustbearanydirectfinanciallossthatyouincurasaconsequenceofanyactoromissionoccurringafterthedatethatyoudiscover,orhavereasonablesuspicionof,thedishonest,fraudulent,maliciousorrecklessactoromission;

(d) allinterrelatedindividualdishonest,fraudulentormaliciousactsshallbedeemedtoconstituteasinglelossunderthisExtension.

CoverunderthisExtensionshallnotexceedtheFidelityGuaranteelimitofindemnityspecifiedinthescheduleintheaggregateduringtheperiodofcover.TheFidelityGuaranteedeductiblespecifiedinthescheduleshallapplytoeachdirectfinanciallosscoveredunderthisExtension.

29. Subsidiaries–Pre-AcquisitionLiability

Weagreetoindemnifyasubsidiaryagainstallcivilliabilityfordamagesandawardsofclaimantscostsarisingfromanyclaimthatisfirstmadeagainstthesubsidiaryduringtheperiodofcoverandisnotifiedtousduringtheperiodofcoverinrespectofanyact,errororomissioncommittedorallegedtohavebeencommittedbythesubsidiarybeforethedatethatyouacquiredthesubsidiarybutaftertheretroactivedatespecifiedinthescheduleinrespectofitsconductofthesameprofessionasyourprofessionalservices.

30. JointVentures

AutomaticExtension17‘JointVentures’shallbeextendedtoprovideindemnityforyourjointandindividualcivilliabilityarisingoutofanyclaimmadeagainstyouduringtheperiodofcover,butonlyinrespectofjointventure(s)namedintheschedule.

31. PreviousBusiness

Wherespecificallyagreedbyusbyendorsementtothispolicy,wewillextendindemnityforanyclaimmadeduringtheperiodofcoveragainstsuchpersonwhoisorbecomesaprincipal,orofficerofyoursinrespectofcivilliabilityfordamagesandawardsofclaimants’costsincurredorallegedtohavebeenincurredonthepartofsuchpersonintheconductofthesameprofessionasyourprofessionalbusinessbeforethatpersonjoinedyou.

32. Run-OffafterMerger,TakeoverorSale

Intheeventoftheinsuredbeingsubjecttoamerger,takeoverorsaleduringtheperiodofcover,thenonapplicationbytheinsurednolaterthan30daysafterthemerger,takeoverorsaleiscompletedorbecomeseffective,wemayextendcovertoapplyinrespectofclaimsfirstmadeagainstyou,orinquiriesfirstcommencedandinvolvingyou,foraperiodofupto84calendarmonthsfromtheexpirydateoftheperiodofcoverbutonlyforclaimsthatarisefromacts,errors,omissionsorotherconductoccurringpriortothedateofsuchmerger,takeoverorsale.

Part3–OptionalExtensions27. BreachofPrivacy:ResponseCostsandFinesandPenalties

27.1 Wewillpaythereasonableandnecessaryresponsecostsincurredbyyou,withourpriorconsent,tonotifyanyclient,thirdpartyorregulatorinaccordancewithyourlegalorregulatorydutiesasaresultofanyactual,allegedorsuspectedbreachofprivacyfirstdiscoveredbyyouandnotifiedtousduringtheperiodofcoverinrelationtopersonaldatacollectedduringtheprovisionofprofessionalservices,regardlessofwhetheraclaimhasbeenmadeagainstyou.

27.2 Forthepurposesofsubclause27.1,suchresponsecostsshallnotinclude:

(a) publicrelationsexpenses;

(b)wages,overtime,salariesorfeestoofficersoremployees;

(c) costtocomplywithanyinjunctiverelief.

27.3 NotwithstandingExclusion37‘FinesandPenalties’,wewillalsopayfinesandpenaltiespayablebyyouarisingfromsuchactual,allegedorsuspectedbreachofprivacyunderthePrivacy Act 1988 (Cth)amendmentstheretoorsimilarlegislation.

27.4 Forthepurposesofsubclause27.3,wewillnotbeliabletoindemnifyyouforanysuchfineorpenalty:

(a) forwhichwearelegallyprohibitedfromindemnifyingyouunderanylaw;

(b)basedupon,attributabletoorinconsequenceofanyrecklessnessoranywilful,intentionalordeliberatefailuretocomplywithanylawfulnoticeordirection,enforcementactionorproceedingunderanylegislation.

27.5 Coverunderthisclause27shallnotexceed$100,000intheaggregatefortheperiodofcover.

28. FidelityInsurance

Wewillindemnifytheinsuredfordirectfinanciallossdiscoveredandnotifiedtousduringtheperiodofcoverresultingfromanydishonest,fraudulentormaliciousactofanyemployeeorofficer,whethercommittedaloneorincollusionwithothers.

OurliabilitytoindemnifyyouunderthisExtensionissubjecttothefollowing:

(a) wearenotliabletoindemnifyyouunderthisExtensionifyoupersonallycommittedorcondonedanyact,omissionorbreachexcludedbyExclusion38‘FraudandDishonesty’;

(b) youmustbearanycostsorexpensesthatyouincurinestablishingorsubstantiatingtheexistenceoramountofthedirectfinancialloss;


8

ThisExtensionisonlyavailableiftheinsuredacceptstheadditionalterms,conditions,exclusionsorpremiumaswemayrequire.

Ifcoverissoextended,Extension20‘NewlyAcquiredorCreatedSubsidiaries’,andExtension12‘ExtendedNotificationPeriod’aredeletedfromthispolicyfromtheeffectivedateofsuchmerger,takeoverorsale.

33. IncomingContinuousCover


(a) youheldprofessionalindemnityinsuranceatthetimethefactsfirstbecameknowntoyou(the“previouspolicyperiod”);and

(b) butforyourfailuretonotifyyourpreviousprofessionalindemnityinsurerofthefactsduringthepreviouspolicyperiod,youwouldhavebeenentitledtoindemnityunderapreviouspolicy;and



Weareonlyliabletoindemnifyyoutotheextentthatweareobligedtoindemnifyyouunderthetermsandconditionsofthispolicy,butinnocircumstancesshallthecovergrantedbythisExtensionbegreaterthanthetermsandconditionsofthepolicyineffectduringthe“previouspolicyperiod”(includingthelimitofindemnityanddeductible).

Wemayreduceourliabilitytoyoubytheamountthatfairlyrepresentstheextenttowhichwehavebeenprejudicedasaresultofthelatenotification.ForthepurposesofthisExtension,prejudicewillincludelostopportunitiestoresolvetheclaimanddifficultiesorincreasedcostsincurredindefendingaclaimduetothedelayinnotification.

Part4–ExclusionsWeshallhavenoliabilityunderthispolicy,includinginrespectofanyclaimorcostorexpenseorindemnityorpaymentorloss,arisingoutof,basedupon,attributabletoorinconsequenceof:

34. Asbestos

asbestosoranymaterialscontainingasbestos.

35. Associatedpersonsorentitiesanyclaimmadebyoronbehalfof:

(a) anyinsuredpersonorentity;or

(b) anyparent,successororassignofanyinsuredpersonorentity,or

(c) anyentityinwhichaninsuredpersonorentityorthemanagementoftheinsuredorsubsidiaryhasanexecutiveorcontrollinginterest,or

(d) anyofficeroremployeeunlesssuchclaimismadebyoronbehalfofanofficeroremployeeasacustomerorclientofyours.

36. ContractualLiability/GuaranteeorWarranty

(a) anyliabilityassumedunderanycontractoragreement;or

(b) anyexpressorimpliedguaranteeorwarranty;

excepttotheextentsuchliabilitywouldhaveattachedtoyouintheabsenceofsuchcontractoragreement.

37. FinesandPenalties

punitive,aggravated,multipleorexemplarydamages,orfinesorpenaltiesimposedbylaw.

Thisexclusionshallnotapplytocompensatorycivilpenalties,providedthat:

(a) ourtotalliabilityforthepaymentofcompensatorycivilpenaltiesduringanyoneperiodofcovershallnotexceed$250,000intheaggregate,whichamountshallformpartofandisnotinadditiontothelimitofindemnity;

(b) wewillnotbeliabletoindemnifyyouforanycompensatorycivilpenaltyforwhichwearelegallyprohibitedfromindemnifyingyouunderanylaw;

(c) wewillnotbeliabletoindemnifyyouforanycompensatorycivilpenaltybasedupon,attributabletoorinconsequenceofany:

(i) wilful,intentionalordeliberatefailuretocomplywithanylawfulnoticeordirection,enforcementactionorproceedingunderanylegislation;

(ii) recklessness;

(iii) requirementtopaytaxes,rates,duties,levies,charges,feesoranyotherrevenueorimpost.


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(b) theenforcementofjudgments,ordersorawardsobtainedwithinordeterminedpursuanttothelawoftheUnitedStatesofAmericaoranyofitsterritoriesorprotectorates.

46. WarandTerrorism

war(declaredorotherwise),terrorism,warlike,military,terroristorguerrillaactivity,sabotage,forceofarms,hostilities(declaredorundeclared),rebellion,revolution,civildisorder,insurrection,usurpedpower,confiscation,nationalisationordestructionofordamagetopropertybyorundertheorderof,anygovernmental,publicorlocalauthorityoranyotherpoliticalorterroristorganisation.

47. TaxSchemes

anytaxproduct,taxschemeortaxarrangement,includingbutnotlimitingthegeneralitythereofanyadvicegivenbyyoutoanyclientonhowtominimisetheirtaxationobligationsbyinvestinginanysuchtaxproduct,taxschemeortaxarrangement:

(a) allegedtobedesignedtoavoidtaxation;or

(b) towhichPartIVAoftheIncomeTaxAssessmentAct1936(Cth)(oritsequivalentorreplacement)applies,

unlessyoutookreasonablestepstoestablishthatanyprofessionalservicesprovidedinrelationtoanysuchtaxproduct,taxschemeortaxarrangementwasconsistentwiththeintentofanyrelevantdeterminations,rulingsornoticesissuedbytheAustralianTaxOfficeandanyapplicablecaselawatthetimethoseprofessionalserviceswereprovided.

48. FinancialPlanning

theprovisionorfailuretoprovideinvestmentadviceoranyadviceforwhichanAustralianFinancialServicesLicenceisrequired,otherthanwheresuchadvicewasprovidedunderandinaccordancewithavalid“LimitedAustralianFinancialServicesLicence”.

Forthepurposesofthispolicy,“LimitedAustralianFinancialServicesLicence”meansthe“limitedlicence”issuedtoyoufortheprovisionoflimitedfinancialservicesundertheprovisionsoftheCorporationsAct2001(Cth)and/oranyregulationsandamendmentsthereto.


(a) thegainingoforintentionalattempttogainprofit,remunerationoradvantagetowhichyouwerenotlegallyentitled;or

(b) dishonest,fraudulent,malicious,wilfulorcriminalactoromissionbyyouoryourconsultants,sub-contractorsoragents;

intheeventthatanyoftheaboveisestablishedbyfinaladjudicationofajudicialorarbitraltribunalorbyyourwrittenadmission.

39. Insolvency

yourinsolvency,liquidation,administrationorreceivership.

40. ObligationtoEmployees

bodilyinjury,mentalinjury,sickness,diseaseordeathofanyemployeeordamagetoordestructionofanypropertyofanemployee,includinglossofuse,arisingoutoforinthecourseoftheiremployment.

41. RadioactivityandNuclearRisk

ionisingradiationorthecontaminationbyradioactivityfromanynuclearfuelorfromanynuclearwastefromthecombustionofanynuclearfuel.

42. PriorClaims/Circumstances(a) disclosuretousinthesubmission,ofanyclaim,

inquiry,investigation,conduct,factormatterregardlessofhowitisexpressed;or

(b) factsorconductwhichhaveorhasbeennotifiedunderanyearlierpolicy;or

(c) factsorconductwhichyouknew,oroughtreasonablytohaveknown,priortothecommencementofthispolicymightgiverisetoaclaimorinquiry;or

(d) anyproceeding,inquiryorsimilarprocessonfootatthecommencementofthispolicy,oranyproceeding,inquiryorsimilarprocessderivedfromessentiallythesamefactsasinsuchproceeding,inquiryorprocess.

43. RetroactiveDate

anycivilliability,act,errororomissionorotherconductwhichfirstoccursbeforetheretroactivedatespecifiedintheschedule.

44. TradingDebts

anytradingdebtthatyouincuroranyguaranteethatyougiveforadebt.

45. USAJurisdiction

(a) anyclaimmadeinordeterminedpursuanttothelawoftheUnitedStatesofAmericaoranyofitsterritoriesorprotectorates,oranyinquiryconductedintheUnitedStatesofAmericaoranyofitsterritoriesorprotectorates;or


9

(b) theenforcementofjudgments,ordersorawardsobtainedwithinordeterminedpursuanttothelawoftheUnitedStatesofAmericaoranyofitsterritoriesorprotectorates.

46. WarandTerrorism

war(declaredorotherwise),terrorism,warlike,military,terroristorguerrillaactivity,sabotage,forceofarms,hostilities(declaredorundeclared),rebellion,revolution,civildisorder,insurrection,usurpedpower,confiscation,nationalisationordestructionofordamagetopropertybyorundertheorderof,anygovernmental,publicorlocalauthorityoranyotherpoliticalorterroristorganisation.

47. TaxSchemes

anytaxproduct,taxschemeortaxarrangement,includingbutnotlimitingthegeneralitythereofanyadvicegivenbyyoutoanyclientonhowtominimisetheirtaxationobligationsbyinvestinginanysuchtaxproduct,taxschemeortaxarrangement:

(a) allegedtobedesignedtoavoidtaxation;or

(b) towhichPartIVAoftheIncomeTaxAssessmentAct1936(Cth)(oritsequivalentorreplacement)applies,

unlessyoutookreasonablestepstoestablishthatanyprofessionalservicesprovidedinrelationtoanysuchtaxproduct,taxschemeortaxarrangementwasconsistentwiththeintentofanyrelevantdeterminations,rulingsornoticesissuedbytheAustralianTaxOfficeandanyapplicablecaselawatthetimethoseprofessionalserviceswereprovided.

48. FinancialPlanning

theprovisionorfailuretoprovideinvestmentadviceoranyadviceforwhichanAustralianFinancialServicesLicenceisrequired,otherthanwheresuchadvicewasprovidedunderandinaccordancewithavalid“LimitedAustralianFinancialServicesLicence”.

Forthepurposesofthispolicy,“LimitedAustralianFinancialServicesLicence”meansthe“limitedlicence”issuedtoyoufortheprovisionoflimitedfinancialservicesundertheprovisionsoftheCorporationsAct2001(Cth)and/oranyregulationsandamendmentsthereto.


(a) thegainingoforintentionalattempttogainprofit,remunerationoradvantagetowhichyouwerenotlegallyentitled;or

(b) dishonest,fraudulent,malicious,wilfulorcriminalactoromissionbyyouoryourconsultants,sub-contractorsoragents;

intheeventthatanyoftheaboveisestablishedbyfinaladjudicationofajudicialorarbitraltribunalorbyyourwrittenadmission.

39. Insolvency

yourinsolvency,liquidation,administrationorreceivership.

40. ObligationtoEmployees

bodilyinjury,mentalinjury,sickness,diseaseordeathofanyemployeeordamagetoordestructionofanypropertyofanemployee,includinglossofuse,arisingoutoforinthecourseoftheiremployment.

41. RadioactivityandNuclearRisk

ionisingradiationorthecontaminationbyradioactivityfromanynuclearfuelorfromanynuclearwastefromthecombustionofanynuclearfuel.

42. PriorClaims/Circumstances(a) disclosuretousinthesubmission,ofanyclaim,

inquiry,investigation,conduct,factormatterregardlessofhowitisexpressed;or

(b) factsorconductwhichhaveorhasbeennotifiedunderanyearlierpolicy;or

(c) factsorconductwhichyouknew,oroughtreasonablytohaveknown,priortothecommencementofthispolicymightgiverisetoaclaimorinquiry;or

(d) anyproceeding,inquiryorsimilarprocessonfootatthecommencementofthispolicy,oranyproceeding,inquiryorsimilarprocessderivedfromessentiallythesamefactsasinsuchproceeding,inquiryorprocess.

43. RetroactiveDate

anycivilliability,act,errororomissionorotherconductwhichfirstoccursbeforetheretroactivedatespecifiedintheschedule.

44. TradingDebts

anytradingdebtthatyouincuroranyguaranteethatyougiveforadebt.

45. USAJurisdiction

(a) anyclaimmadeinordeterminedpursuanttothelawoftheUnitedStatesofAmericaoranyofitsterritoriesorprotectorates,oranyinquiryconductedintheUnitedStatesofAmericaoranyofitsterritoriesorprotectorates;or


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Part5–ClaimsConditions49. Notification

Youmustnotifyusofanyclaimmadeagainstyouduringtheperiodofcoverassoonaspracticableaftertheclaimismade.Youmustgivenoticeofanyclaim,lossorothermatterinwriting,andsenditto:

TheClaimsManager,ProfessionalRisksDivisionAllianzAustraliaInsuranceLimited2MarketStreet,Sydney,NSW,2000.

50. Co-operation

Youmustatyourowncost:

(i) renderallreasonableassistancetousandco-operateinthedefenceofanyclaimorinquiryandtheassertionofindemnificationandcontributionrights;

(ii) givesuchinformationandassistancetousaswemayreasonablyrequiretoenableittoinvestigateanyclaimorinquiryordetermineourliabilityunderthispolicy.

51. Mitigation

Youmustuseallduediligenceanddoandconcurindoingallthingsreasonablypracticabletoavoidordiminishanycivilliability,defencecostsoranyothercostsorlossinrespectofwhichweareliabletoindemnifyyouunderthispolicy.

52. OurConsent

Youshallnotadmitorassumeanyliability,enterintoanysettlementagreementorconsenttoanyjudgmentinrelationtoanyclaimorinquirywithoutourpriorwrittenconsent.

53. DefenceandSettlement

Wedonotassumeanydutytodefend,andyoushalldefendandcontestanyclaimmadeagainstyouunlessweelectinwritingtotakeoverandconductthedefenceandsettlementofanyclaim.Ifwedonotsoelect,weshallbeentitled,butnotrequired,toparticipatefullyinsuchdefenceandthenegotiationofanysettlement.

IfthereisanydisputebetweenusandyouaboutwhethertoagreetoaproposedsettlementoraboutwhetheraclaimshouldcontinuetobedefendedthedisputeshallbedealtwithinaccordancewithCondition54‘Disputes’.

54. Disputes54.1 General

NeitherwenoryoumayrequiretheothertocontestanyclaimunlessSeniorCounseladvisesthattheclaimshouldbecontested.

Informulatinghisorheradvice,SeniorCounselmusttakeintoconsiderationthedamagesandcostswhicharelikelytoberecoveredbytheplaintiff,thelikelydefencecostsandyourprospectsofsuccessfullydefendingtheclaim.

54.2 AppointmentofSeniorCounsel

Ifaclaimismadeagainstyou,wemaynominateaSeniorCounsel.IfwenominateaSeniorCounsel,youmustnotifyuswhetherornotyouapproveofournomineeassoonaspracticable.IfwecannotagreewithyouuponSeniorCounselwithinareasonabletime,SeniorCounselwillbesuchpersonasthePresidentoftheNewSouthWalesBarAssociationappoints.

54.3 CostsofSeniorCounsel’sOpinion

ThecostofSeniorCounsel’sopinionisincludedinthedefencecosts.

54.4 Meaningof‘SeniorCounsel’

Forpurposesofthisclause,‘SeniorCounsel’meansapractisingbarristerwhoisentitledtopracticeasaQueensCounselorSeniorCounselinAustraliaorNewZealand.

55. ElectiontoContestIfwerecommendsettlementofanyclaimandyoudonotagreetosuchsettlement,youmayelecttocontesttheclaim.However,ourliabilityinconnectionwiththeclaimisthenlimitedtotheamountwerecommendinsettlementplusdefencecostsincurredwithourconsentuptothedatewerecommendsettlementtoyou.

56. Allocation56.1 General

Intheeventthereareanumberofcauseswhichcontributetoaclaimmadeagainstyou,weagreetoindemnifyyouinrespectofyourliabilityforthatpartoftheclaim,includingdefencecosts,whichiscoveredunderthepolicyirrespectiveofwhetheroneormoreoftheothercausesisexcludedunderthepolicy.

56.2 BestEfforts

Bothpartieswillusetheirbesteffortstoagreeuponwhatisattributabletoindemnifiedandexcludedcauses.IntheeventthatanagreementcannotbereachedanExpertshalldetermine,asanExpertbutnotanarbitrator,thecausesofthelossandthepercentageattributabletoeachcause.UntilsuchExperthasmadehisorherdetermination,wemay,atourabsolutediscretion,paysuchamountinsuredunderthisConditionasweconsiderappropriate.

56.3 Meaningof‘Expert’

‘Expert’shallmeananappropriatelyqualifiedindustryexpertnominatedbyus.


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Part5–ClaimsConditions49. Notification

Youmustnotifyusofanyclaimmadeagainstyouduringtheperiodofcoverassoonaspracticableaftertheclaimismade.Youmustgivenoticeofanyclaim,lossorothermatterinwriting,andsenditto:

TheClaimsManager,ProfessionalRisksDivisionAllianzAustraliaInsuranceLimited2MarketStreet,Sydney,NSW,2000.

50. Co-operation

Youmustatyourowncost:

(i) renderallreasonableassistancetousandco-operateinthedefenceofanyclaimorinquiryandtheassertionofindemnificationandcontributionrights;

(ii) givesuchinformationandassistancetousaswemayreasonablyrequiretoenableittoinvestigateanyclaimorinquiryordetermineourliabilityunderthispolicy.

51. Mitigation

Youmustuseallduediligenceanddoandconcurindoingallthingsreasonablypracticabletoavoidordiminishanycivilliability,defencecostsoranyothercostsorlossinrespectofwhichweareliabletoindemnifyyouunderthispolicy.

52. OurConsent

Youshallnotadmitorassumeanyliability,enterintoanysettlementagreementorconsenttoanyjudgmentinrelationtoanyclaimorinquirywithoutourpriorwrittenconsent.

53. DefenceandSettlement

Wedonotassumeanydutytodefend,andyoushalldefendandcontestanyclaimmadeagainstyouunlessweelectinwritingtotakeoverandconductthedefenceandsettlementofanyclaim.Ifwedonotsoelect,weshallbeentitled,butnotrequired,toparticipatefullyinsuchdefenceandthenegotiationofanysettlement.

IfthereisanydisputebetweenusandyouaboutwhethertoagreetoaproposedsettlementoraboutwhetheraclaimshouldcontinuetobedefendedthedisputeshallbedealtwithinaccordancewithCondition54‘Disputes’.

54. Disputes54.1 General

NeitherwenoryoumayrequiretheothertocontestanyclaimunlessSeniorCounseladvisesthattheclaimshouldbecontested.

Informulatinghisorheradvice,SeniorCounselmusttakeintoconsiderationthedamagesandcostswhicharelikelytoberecoveredbytheplaintiff,thelikelydefencecostsandyourprospectsofsuccessfullydefendingtheclaim.

54.2 AppointmentofSeniorCounsel

Ifaclaimismadeagainstyou,wemaynominateaSeniorCounsel.IfwenominateaSeniorCounsel,youmustnotifyuswhetherornotyouapproveofournomineeassoonaspracticable.IfwecannotagreewithyouuponSeniorCounselwithinareasonabletime,SeniorCounselwillbesuchpersonasthePresidentoftheNewSouthWalesBarAssociationappoints.

54.3 CostsofSeniorCounsel’sOpinion

ThecostofSeniorCounsel’sopinionisincludedinthedefencecosts.

54.4 Meaningof‘SeniorCounsel’

Forpurposesofthisclause,‘SeniorCounsel’meansapractisingbarristerwhoisentitledtopracticeasaQueensCounselorSeniorCounselinAustraliaorNewZealand.

55. ElectiontoContestIfwerecommendsettlementofanyclaimandyoudonotagreetosuchsettlement,youmayelecttocontesttheclaim.However,ourliabilityinconnectionwiththeclaimisthenlimitedtotheamountwerecommendinsettlementplusdefencecostsincurredwithourconsentuptothedatewerecommendsettlementtoyou.

56. Allocation56.1 General

Intheeventthereareanumberofcauseswhichcontributetoaclaimmadeagainstyou,weagreetoindemnifyyouinrespectofyourliabilityforthatpartoftheclaim,includingdefencecosts,whichiscoveredunderthepolicyirrespectiveofwhetheroneormoreoftheothercausesisexcludedunderthepolicy.

56.2 BestEfforts

Bothpartieswillusetheirbesteffortstoagreeuponwhatisattributabletoindemnifiedandexcludedcauses.IntheeventthatanagreementcannotbereachedanExpertshalldetermine,asanExpertbutnotanarbitrator,thecausesofthelossandthepercentageattributabletoeachcause.UntilsuchExperthasmadehisorherdetermination,wemay,atourabsolutediscretion,paysuchamountinsuredunderthisConditionasweconsiderappropriate.

56.3 Meaningof‘Expert’

‘Expert’shallmeananappropriatelyqualifiedindustryexpertnominatedbyus.


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61. GST

Theamountthatweareliabletopayunderthispolicywillbereducedbytheamountofanyinputtaxcreditthatyouareormaybeentitledtoclaimforthesupplyofgoodsorservicescoveredbythatpayment.

Ifyouareentitledtoaninputtaxcreditforthepremium,youmustinformusoftheextentofthatentitlementatorbeforethetimeyoumakeaclaimunderthispolicy.WewillnotindemnifyyouforanyGSTliability,finesorpenaltiesthatarisefromorisattributabletoyourfailuretonotifyusofyourentitlement(orcorrectentitlement)toaninputtaxcreditonthepremium.

Ifyouareliabletopayadeductibleunderthispolicy,theamountpayablewillbecalculatedafterdeductionofanyinputtaxcreditthatyouareormaybeentitledtoclaimonpaymentofthedeductible.

62. Plurals,HeadingsandTitles,Interpretation

Wordsandexpressionsinthesingularshallincludetheplural,andviceversa.Also,whereatermofthispolicyisnotspecificallydefined,itisagreedthatthedefinitionnormallyattributedtoitbyanyapplicablelaworbusinesspracticeshallapply.

Thispolicy,itsscheduleandanyendorsementsareonecontractinwhich,unlessthecontextotherwiserequires:

(i) headingsaredescriptiveonly,notanaidtoconstruction;

(ii) singularincludestheplural,andviceversa;

(iii) themaleincludesthefemaleandneuter;

(iv) allreferencestospecificlegislationincludeamendmentstoandre-enactmentsofsuchlegislation;and

(v) referencestopositions,officesortitlesshallincludetheirequivalentsinanyjurisdictioninwhichacoveredclaimismadeorcoveredinquiryconducted.

63. ScopeandGoverningLaw

Anyissuerelatingtotheconstruction,validityoroperationofthispolicyshallbedeterminedinaccordancewiththelawsoftheCommonwealthofAustraliaandtheAustralianStateorTerritoryinwhichthepolicyisissued.Exceptasotherwiseprovidedherein,thepartiessubmittotheexclusivejurisdictionoftheAustraliancourts.

64. Subrogation

Unlessotherwisestatedinthepolicy,intheeventofanypaymentunderthispolicy,weshallbesubrogatedtoallofyourrightsofrecoveryinrespectofsuchpayment.Inaddition,youshallexecuteallandanydocumentationanddoanyotherthings,atyourowncost,asmaybenecessarytoenableustobringanactionorsuitforsuchrecovery.

Part6–OtherConditions57. Assignment

Thispolicyandanyrightsunderorinrespectofitcannotbeassignedbyyouwithoutourpriorwrittenconsent.

58. Cancellation

(i) Youmaycancelthispolicybygivingnoticeinwritingtous.Ifsuchnoticeisgiven,thecancellationwilltakeeffectonthedaythenoticeisreceivedbyus.

(ii) WemaycancelthispolicyinanyofthecircumstancessetoutintheInsuranceContractsAct1984.Suchcancellationistotakeeffect30daysfromthetimenotificationisreceivedbyyou.

(iii) Uponcancellationbyyouorus,youwillreceivean80%proratarefundofpremiumfortheunexpiredportionoftheperiodofcoversubjecttonoclaimsorcircumstancesorinquirieshavingbeenmadeduringtheperiodofcover.

(iv) Whenthepremiumissubjecttoadjustment,cancellationwillnotaffectyourobligationtosupplytoussuchinformationasisnecessarytopermitthepremiumadjustmenttobecalculatedandtopaytheamountoftheadjustmentapplicableuptothedateofcancellation.

59. ChangeofControl

Weshallnotbeliabletomakeanypaymentortoprovideanyservicesinconnectionwithanyclaimorinquiryarisingoutof,baseduponorattributabletoanycivilliability,act,errororomissionorotherconductcommittedaftertheoccurrenceofamerger,takeover,orsale,excepttotheextentthatthereiscoverunderOptionalExtension32‘Run-offafterMerger,TakeoverorSale’,andsuchcoverhasbeenincludedunderthispolicy.

60. Currency

AllmonetaryamountsunderthispolicyareexpressedandpayableinAustraliancurrency.Ifjudgementisrendered,settlementisdenominatedorotheramountpayableunderthispolicyisstatedinacurrencyotherthanAustraliandollars,paymentunderthispolicyshallbemadeinAustraliandollarsatthecashrateofexchangeforthepurchaseofAustraliandollarsdeterminedbythefreemarketrateofexchangeaspublishedinthecurrencyconversionwebsitewww.oanda.com,orifnolongercurrent,acurrencyconversionwebsiteselectedbyusonthedatethefinaljudgementisreachedortheamountofthesettlementisagreedupon.


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Anyrecoveryreceivedshallfirstbeappliedagainstthecostsoftherecoveryproceeding,thenanypaymentmadebyusandthentoanybalanceremainingthereafterbeingremittedtoyouuptotheamountofanyuninsuredloss.

YoushallnotdoanythingwhichshallprejudiceourrightsunderthisCondition.

WeagreenottoexerciseanysuchrightsofrecoveryagainstanyofficeroremployeeunlessitisestablishedthatExclusion38‘FraudandDishonesty’appliestotheclaimandtheofficeroremployee.

Inoursolediscretion,wemay,inwriting,waiveanyofitsrightssetforthinthisCondition.

65. AlterationtoRisk

65.1 Youmustnotifyusassoonaspracticableofanymaterialalterationtoriskduringtheperiodofcoverincluding:

(a) ifyousubmittovoluntarybankruptcy,receivershiporliquidation;or

(b) ifyoufailtopaydebts;or

(c) ifyoubreachanyotherobligationgivingrisetotheappointmentofareceiver,bankruptcy,orwindingupproceedings;or

(d) anymaterialchangeinthenatureoftheprofessionalservices.

65.2 Wheresuchnoticeisgivenand/orwherethereisanymaterialalterationtotherisk,wereservetherighttocancelthispolicyinaccordancewiththeInsuranceContractsAct1984(Cth).

65.3 Notwithstanding65.2,intheeventthatyoushouldbecomebankruptorinsolvent,weshallnotberelievedtherebyofthepaymentofanyclaimhereundersolelyduetosuchbankruptcyorinsolvency.

Part7–DefinitionsInthispolicy,unlessthecontextrequiresotherwise:

(a) claimmeans

(i) awrittenorverbaldemandbyathirdpartyforcompensationordamages;or

(ii) acivilproceedingbroughtbyathirdpartyforrecoveryofcompensationordamages,

inrespectofanactualorallegedbreachofprofessionalduty.

(b) currencymeans

anynegotiableinstruments,bearerbonds,coupons,stamps,money,bankorcurrencynotes.

(c) damagesmeans

anyamountthatyoushallbelegallyliabletopayasmonetarycompensationinrespectofjudgmentsorarbitralawardsrenderedagainstyou,orsettlementsenteredintowithourpriorwrittenconsent.

(d) deductiblemeans

theamountspecifiedassuchintheschedule.

(e) defencecostsmeans

allreasonablelegalfees,costsandexpenses,includingdisbursementsforwhichyouarelegallyliableandwhichyouincurredafteraclaimismade,withourpriorwrittenconsent(suchconsentnottobeunreasonablydelayedorwithheld),intheinvestigation,defence,adjustment,settlementorappealofanyclaim.

(f) directfinanciallossmeans

thephysicallossofcurrencybelongingtoyouorinyourcare,custodyorcontrol,sustainedbyyoudirectlyasaresultofadishonest,fraudulentormaliciousact.Itdoesnotmean:

(i) costs,feesorexpensesofprosecutingordefendinganydemand,claimorlegalproceedingresultingfromadirectfinanciallosscoveredbythispolicy;

(ii) costs,feesorotherexpensesinestablishingtheexistenceoramountofanydirectfinancialloss;

(iii) salary,wages,commissions,fees,bonuses,promotions,awards,profit-sharing,superannuationoranyotherremunerationofanyemployeeorofficer;

(iv) completeorpartialnon-paymentunderanycreditarrangement;

(v) interestorotherindirectorconsequentialloss;


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However,inquirydoesnotinclude:

(iv) anyof(i),(ii)or(iii)abovethatrelatestoanindustryeventorpracticeandnotspecificallytoyourconductprovidingprofessionalservices;

(v) routineregulatorysupervision,inspectionorcompliancereviews;

(vi) anyinquiryconductedintheUnitedStatesofAmericaorCanadaoranyofitsterritoriesorpossessions.

(j) inquirycostsmeans

allreasonablelegalcostsandexpensesforwhichyouarelegallyliableandwhichareincurredbyyou,withourpriorconsent(suchconsentnottobeunreasonablydelayedorwithheld),forlegalrepresentationinconnectionwith,preparationfor,attendanceatorcompliancewithaninquiry.

(k) insuredmeans

theorganisationornaturalperson(s)specifiedassuchintheschedule.

(l) limitofindemnitymeans


(m) mitigationcostsmeans

allcostsandexpensesnecessarilyincurredbyyouthatare:

(i) directly,solelyandexclusivelyattributableto;and

(ii) reasonablyincurred;

tomitigateorrectifyanerrororomissionthatcouldhaveresultedinaclaimbeingmadeagainstyouandforwhichthepolicywouldrespondifaclaimhadbeenmade.

Itdoesnotmeanorinclude:

(i) yourlossofopportunity,revenueorprofits;

(ii) amountspaidbyyousolelyforthepurposeofreducingorremovingreputationalrisktothebusiness;

(iii) damages,compensationorotherpaymentsmade,orconsiderationgiven,tocustomers,clientsorpotentialclaimants;

(iv) anyamountonceaclaimismade.

(n) officermeans

(i) adirectororsecretaryoftheinsuredorsubsidiary;or

(ii) aperson:

(a) whomakes,orparticipatesinmaking,decisionsthataffectthewhole,orasubstantialpart,ofthebusinessoftheinsuredorsubsidiary;or

(b) whohasthecapacitytoaffectsignificantlytheinsured’sorsubsidiary’sfinancialstanding;or

(vi) anyfinanciallosssustained,whilstinthecare,custodycontrolofanyfinancialinstitutionorarmouredsecuritycompany;

(vii) expensesincurredinreplacingdataorredesigningofsoftware;

(viii) losssustainedbyoneinsuredpersonorentitytotheadvantageofanotherinsuredpersonorentity.

(g) discoveredmeans

whenanofficerfirstbecomesawareoffactswhichwouldcauseareasonablepersontobelievethatadirectfinanciallosshasbeenorislikelytobeincurred,eventhoughtheexactamountordetailsofthedirectfinanciallossarenotknownatthetimeofdiscovery.

(h) employeemeans

anynaturalpersonwhois,hasbeenorduringtheperiodofcoverbecomesexpresslyengagedunderacontractofemploymentwithanyinsuredorsubsidiary.

(i) inquirymeans

(i) aninvestigation,examinationorinquirybyanyprofessionalbodyofwhichyouareamember,orexternalofficialpersonorbodyhavinglegalauthoritytoconductaninvestigation,includingaRoyalCommission,intoyourprofessionalservicesandforwhich:

(a) thenoticeorprocessrequiringyoutoattendortoproducedocumentsoranswerquestionsisfirstservedduringtheperiodofcover;or

(b) youareidentifiedinwritingduringtheperiodofcoverbysuchauthorisedpersonorbodyasatargetoftheinvestigation,examinationorinquiry;or,

(ii) araidon,oron-sitevisitto,youwhichfirsttakesplaceduringtheperiodofcoverbyaregulator,governmentbodyoranyotherexternalofficialpersonorbodyhavinglegalauthoritytoconductaninvestigationintotheprovisionofyourprofessionalservicesandwhichinvolvesyouintheproduction,review,copyingorconfiscationofdocumentsoraninterview;or

(iii) apublicannouncementrelatingto(ii)abovemadebytheauthorityperformingtheraidoron-sitevisit.

Itisnotnecessarythataclaimismadeagainstyou.


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Anyrecoveryreceivedshallfirstbeappliedagainstthecostsoftherecoveryproceeding,thenanypaymentmadebyusandthentoanybalanceremainingthereafterbeingremittedtoyouuptotheamountofanyuninsuredloss.

YoushallnotdoanythingwhichshallprejudiceourrightsunderthisCondition.

WeagreenottoexerciseanysuchrightsofrecoveryagainstanyofficeroremployeeunlessitisestablishedthatExclusion38‘FraudandDishonesty’appliestotheclaimandtheofficeroremployee.

Inoursolediscretion,wemay,inwriting,waiveanyofitsrightssetforthinthisCondition.

65. AlterationtoRisk

65.1 Youmustnotifyusassoonaspracticableofanymaterialalterationtoriskduringtheperiodofcoverincluding:

(a) ifyousubmittovoluntarybankruptcy,receivershiporliquidation;or

(b) ifyoufailtopaydebts;or

(c) ifyoubreachanyotherobligationgivingrisetotheappointmentofareceiver,bankruptcy,orwindingupproceedings;or

(d) anymaterialchangeinthenatureoftheprofessionalservices.

65.2 Wheresuchnoticeisgivenand/orwherethereisanymaterialalterationtotherisk,wereservetherighttocancelthispolicyinaccordancewiththeInsuranceContractsAct1984(Cth).

65.3 Notwithstanding65.2,intheeventthatyoushouldbecomebankruptorinsolvent,weshallnotberelievedtherebyofthepaymentofanyclaimhereundersolelyduetosuchbankruptcyorinsolvency.

Part7–DefinitionsInthispolicy,unlessthecontextrequiresotherwise:

(a) claimmeans

(i) awrittenorverbaldemandbyathirdpartyforcompensationordamages;or

(ii) acivilproceedingbroughtbyathirdpartyforrecoveryofcompensationordamages,

inrespectofanactualorallegedbreachofprofessionalduty.

(b) currencymeans

anynegotiableinstruments,bearerbonds,coupons,stamps,money,bankorcurrencynotes.

(c) damagesmeans

anyamountthatyoushallbelegallyliabletopayasmonetarycompensationinrespectofjudgmentsorarbitralawardsrenderedagainstyou,orsettlementsenteredintowithourpriorwrittenconsent.

(d) deductiblemeans


(e) defencecostsmeans

allreasonablelegalfees,costsandexpenses,includingdisbursementsforwhichyouarelegallyliableandwhichyouincurredafteraclaimismade,withourpriorwrittenconsent(suchconsentnottobeunreasonablydelayedorwithheld),intheinvestigation,defence,adjustment,settlementorappealofanyclaim.

(f) directfinanciallossmeans

thephysicallossofcurrencybelongingtoyouorinyourcare,custodyorcontrol,sustainedbyyoudirectlyasaresultofadishonest,fraudulentormaliciousact.Itdoesnotmean:

(i) costs,feesorexpensesofprosecutingordefendinganydemand,claimorlegalproceedingresultingfromadirectfinanciallosscoveredbythispolicy;

(ii) costs,feesorotherexpensesinestablishingtheexistenceoramountofanydirectfinancialloss;

(iii) salary,wages,commissions,fees,bonuses,promotions,awards,profit-sharing,superannuationoranyotherremunerationofanyemployeeorofficer;

(iv) completeorpartialnon-paymentunderanycreditarrangement;

(v) interestorotherindirectorconsequentialloss;


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However,inquirydoesnotinclude:

(iv) anyof(i),(ii)or(iii)abovethatrelatestoanindustryeventorpracticeandnotspecificallytoyourconductprovidingprofessionalservices;

(v) routineregulatorysupervision,inspectionorcompliancereviews;

(vi) anyinquiryconductedintheUnitedStatesofAmericaorCanadaoranyofitsterritoriesorpossessions.

(j) inquirycostsmeans

allreasonablelegalcostsandexpensesforwhichyouarelegallyliableandwhichareincurredbyyou,withourpriorconsent(suchconsentnottobeunreasonablydelayedorwithheld),forlegalrepresentationinconnectionwith,preparationfor,attendanceatorcompliancewithaninquiry.

(k) insuredmeans

theorganisationornaturalperson(s)specifiedassuchintheschedule.

(l) limitofindemnitymeans


(m) mitigationcostsmeans

allcostsandexpensesnecessarilyincurredbyyouthatare:

(i) directly,solelyandexclusivelyattributableto;and

(ii) reasonablyincurred;

tomitigateorrectifyanerrororomissionthatcouldhaveresultedinaclaimbeingmadeagainstyouandforwhichthepolicywouldrespondifaclaimhadbeenmade.


(i) yourlossofopportunity,revenueorprofits;

(ii) amountspaidbyyousolelyforthepurposeofreducingorremovingreputationalrisktothebusiness;

(iii) damages,compensationorotherpaymentsmade,orconsiderationgiven,tocustomers,clientsorpotentialclaimants;

(iv) anyamountonceaclaimismade.

(n) officermeans

(i) adirectororsecretaryoftheinsuredorsubsidiary;or

(ii) aperson:

(a) whomakes,orparticipatesinmaking,decisionsthataffectthewhole,orasubstantialpart,ofthebusinessoftheinsuredorsubsidiary;or

(b) whohasthecapacitytoaffectsignificantlytheinsured’sorsubsidiary’sfinancialstanding;or

(vi) anyfinanciallosssustained,whilstinthecare,custodycontrolofanyfinancialinstitutionorarmouredsecuritycompany;

(vii) expensesincurredinreplacingdataorredesigningofsoftware;

(viii) losssustainedbyoneinsuredpersonorentitytotheadvantageofanotherinsuredpersonorentity.

(g) discoveredmeans

whenanofficerfirstbecomesawareoffactswhichwouldcauseareasonablepersontobelievethatadirectfinanciallosshasbeenorislikelytobeincurred,eventhoughtheexactamountordetailsofthedirectfinanciallossarenotknownatthetimeofdiscovery.

(h) employeemeans

anynaturalpersonwhois,hasbeenorduringtheperiodofcoverbecomesexpresslyengagedunderacontractofemploymentwithanyinsuredorsubsidiary.

(i) inquirymeans

(i) aninvestigation,examinationorinquirybyanyprofessionalbodyofwhichyouareamember,orexternalofficialpersonorbodyhavinglegalauthoritytoconductaninvestigation,includingaRoyalCommission,intoyourprofessionalservicesandforwhich:

(a) thenoticeorprocessrequiringyoutoattendortoproducedocumentsoranswerquestionsisfirstservedduringtheperiodofcover;or

(b) youareidentifiedinwritingduringtheperiodofcoverbysuchauthorisedpersonorbodyasatargetoftheinvestigation,examinationorinquiry;or,

(ii) araidon,oron-sitevisitto,youwhichfirsttakesplaceduringtheperiodofcoverbyaregulator,governmentbodyoranyotherexternalofficialpersonorbodyhavinglegalauthoritytoconductaninvestigationintotheprovisionofyourprofessionalservicesandwhichinvolvesyouintheproduction,review,copyingorconfiscationofdocumentsoraninterview;or

(iii) apublicannouncementrelatingto(ii)abovemadebytheauthorityperformingtheraidoron-sitevisit.

Itisnotnecessarythataclaimismadeagainstyou.


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(r) schedulemeans

theschedulerelatingtoandformingpartofthispolicy,includinganyendorsementsthereto.

(s) submissionmeans

eachandeveryproposalform,thestatements,andrepresentationstherein,itsattachmentsandallothermaterialinformationsubmittedtousinrespectofthispolicy.

(t) subsidiarymeans

anyentityatthecommencementoftheperiodofcoverthattheinsuredeitherdirectlyorindirectly:

(i) controlsthecompositionoftheboardofdirectors;

(ii) controlsmorethanhalfofthevotingpower;or

(iii) holdsmorethanhalfoftheissuedsharecapital.

(u) terrorismmeans

anact,includingbutnotlimitedtotheuseofforceorviolenceand/orthethreatthereof,ofanypersonorgroup(s)ofpersonswhetheractingaloneoronbehalfoforinconnectionwithanyorganisation(s)orgovernment(s),committedforpolitical,religious,ideologicalorsimilarpurposesincludingtheintentiontoinfluenceanygovernmentand/ortoputthepublicoranysectionofthepublicinfear.

(v) we,us,ourmeans

AllianzAustraliaInsuranceLimited,ABN15000122850,AFSLicenceNo.234708.

(w) you,yourmeans

(i) theinsuredandanysubsidiarythereof;and

(ii) anyofficerbutonlywhenactingwithinthescopeoftheirdutiesintheperformanceofprofessionalservices(asdistinguishedfromcarryingoutdutiesasanofficeroftheinsuredinrelationtotheinsured’sownaffairs);or

(iii) anyemployeebutonlywhenactingwithinthescopeoftheirdutiesintheperformanceofprofessionalservices.

(c) inaccordancewithwhoseinstructionsorwishesthedirectorsoftheinsuredorsubsidiaryareaccustomedtoact(excludingadvicegivenbythepersonintheproperperformanceoffunctionsattachingtotheperson’sprofessionalcapacityortheirbusinessrelationshipwiththedirectorsortheinsuredorsubsidiary).

(o) periodofcovermeans

theperiodoftimespecifiedassuchintheschedule.

(p) professionalservicesmeans

theprofession,practice,occupationorbusinessasdescribedinthescheduleastheprofessionalbusiness,beingadvicegivenorservicesperformedbyyouoronyourbehalfas:

(i) trustees;or

(ii) receivers,liquidatorsorofficialmanagers;or

(iii) directorsorsecretariesorregistrarsofproprietarycompanies;or

(iv) anyactivitydeclaredbytheethicalpronouncementsorcodeofethicsoftheInstituteofCharteredAccountantsinAustraliaortheAustralianSocietyofCertifiedPractisingAccountantsortheNationalInstituteofAccountantsortheAssociationofTaxationandManagementAccountantsLtdortheNationalTax&AccountantsAssociationoranylikeprofessionalorganisation,tobeundertakenaspartofanaccountant’spractice.

(q) publicrelationsexpensesmeans

allreasonablepaymentsincurredbyyouwithourpriorwrittenconsent(suchconsentnottobeunreasonablydelayedorwithheld)forpublicrelations,crisismanagementorlegalservicesreasonablyrequiredtopreventorminimiseadverseornegativepublicityasadirectresultofaclaimorinquirycoveredbythispolicy.


(i) responsecostsasdefinedunderOptionalExtension27;

(ii) youroverheads,staffremunerationormanagementtime;

(iii) compensationorotherpaymentsmadetocustomers,clientsorpotentialclaimants;

(iv) finesorpenalties;or

(v) thecostsandexpensesofcomplyingwithanyorderfor,grantoforagreementtoprovideinjunctiveorothernon-monetaryrelief.


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39149 POL785 Pro Indemnity_Account_txt_D6.indd 16 10/05/2016 3:19 pm POL785 0618 Allianz Professional Indemnity Policy Accountants_D9.indd 3 13/6/18 11:17 am

POL7

85BA

06/

18

Contact: [email protected]

Allianz Australia Insurance Limited (Allianz)ABN 15 000 122 850AFS Licence No. 2347082 Market Street Sydney NSW 2000 Telephone: 13 2664

39149 POL785 Pro Indemnity_Account_cov_D6.indd 4 10/05/2016 3:23 pmPOL785 0618 Allianz Professional Indemnity Policy Accountants_D9.indd 4 13/6/18 11:17 am