Professional Indemnity Policy

A policy designed for professional offices and medical practices.

Focus PIP Policy Wording

PIP 2016.1/03.05.16

Important Notices

Introduction Focus Underwriting is a trading division of IBL Limited AFS

Licence number: 231203

You can contact us at enquiries@focusuw.com.au or on 1800

234 338 or at:

Melbourne Perth Level 21 41 Exhibition Street Melbourne 3000

123a Colin Street West Perth 6008

Introduction The cover provided by this Policy may vary from the cover

provided by your existing or previous policies. You should

read this policy wording and important notices carefully and

satisfy yourself that you understand their contents. Please

refer any questions regarding the information contained in

these documents to your intermediary.

The Policy is written on a ‘claims made’ basis

Privacy Notice IBL Limited trading as Focus Underwriting, is committed to

protecting your privacy in accordance with the Privacy Act

1998 (Cth) and the Australian Privacy Principles. This Privacy

Policy describes our current policies and practices in relation

to the collection, handling, use and disclosure of personal

information. It also deals with how you can complain about a

breach of the privacy laws and how you can access the

personal information we hold and how to have that

information corrected.

Our contact details for all privacy enquiries:

Level 21, 41 Exhibition Street Melbourne 3000

Phone: 1800 234 338 Fax 03 9500 2274

Email: enquiries@focusuw.com.au

Web: www.focusuw.com.au

We encourage you to check our website regularly for any

updates to our Privacy Policy.

Our website utilises cookies to provide you with a better user

experience. Cookies also allow us to identify your browser

while you are using our site. They do not identify you. If you

do not wish to receive cookies, you can instruct your browser

to refuse them.

What information do we collect and how do we use it?

When we arrange insurance on your behalf, we ask you for

the information we need to advise you about your insurance

needs and management of your risks. This can include a

broad range of information ranging from your name,

address, contact details, age etc. We provide any information

that the insurers who we ask to quote for your insurances

require to enable them to decide whether to insure you and

on what terms.

Insurers may in turn pass on this information to their

reinsurers. Some of these companies are located outside

Australia. When you make a claim under your policy, we

assist you by collecting information about your claim.

Sometimes we also need to collect information about you

from others. We provide this information to your insurer (or

anyone your insurer has appointed to assist it to consider

your claim, e.g. legal advisers etc) to enable it to consider

your claim. Again this information may be passed on to

reinsurers.

We may use your information internally to help us improve

our services and help resolve any complaints or problems.

What if you don’t provide some information to us?

The insurance laws require you to provide your insurers with

all the information they need in order to be able to decide

whether to insure you and on what terms. You have a duty to

disclose the information which relevant to the insurer’s

decision to insure you. If you provide inaccurate or

incomplete information we may not be able to provide you

with the products or services you are seeking.

When do we disclose your information overseas?

This policy is provided by Lloyd’s of London. Your information

may be given to the Lloyd’s broker and underwriters at

Lloyd’s of London to make a decision about whether to

insure you. Lloyd’s are regulated by laws which protect your

information in a way that is similar to the Privacy Act.

Your insurer may acquire reinsurance from reinsurance

companies that are located throughout the world, so in some

cases your information may be disclosed to them for

assessment of risks and in order to provide reinsurance to

your insurer. We do not make this disclosure, this made by

the insurer (if necessary) for the placement for their

reinsurance program.

How do we hold and protect your information?

We strive to maintain the reliability, accuracy, completeness

and currency of the personal information we hold and to

protect its privacy and security. We keep personal

information only for as long as is reasonably necessary for

the purpose for which it was collected or to comply with any

applicable legal or ethical reporting or document retention

requirements.

We hold the information we collect from you in a working file

and/or electronically on our own servers.

Working files are maintained and held in secure premises or

securely destroyed. In some cases, your file is archived and

sent to an external data storage provider for a period of

time. We only use storage providers located in Australia who

are also regulated by the Privacy Act.

We ensure that your information held on our servers is safe

by restricting access by use of individual logons and

passwords. Access is on a need to know basis with only the

necessary staff having access to your information.

We ensure that your information is safe by protecting it from

unauthorised access, modification and disclosure. We

maintain physical security over our paper and electronic data

and premises, by using locks and security systems. We also

maintain computer and network security; for example, we

use firewalls (security measures for the Internet) and other

security systems such as user identifiers and passwords to

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control access to computer systems where your information

is stored.

Anonymous data – We use technology to collect anonymous

information about the use of our website, for example when

you browse our website our service provider logs your server

address, the date and time of your visit, the pages and links

accessed and the type of browser used. It does not identify

you personally and we only use this information for statistical

purposes and to improve the content and functionality of our

website, to better understand our clients and markets and to

improve our services.

Cookies – In order to collect this anonymous data we may

use “cookies”. Cookies are small pieces of information which

are sent to your browser and stored on your computer’s hard

drive. Sometimes they identify users where the website

requires information to be retained from one page to the

next. This is purely to increase the functionality of the site.

Cookies by themselves cannot be used to discover the

identity of the user. Cookies do not damage your computer

and you can set your browser to notify you when you receive

a cookie so that you can decide if you want to accept it. Once

you leave the site, the cookie is destroyed and no personal or

other information about you is stored.

Forms - Our website allows visitors to submit information via

self-service forms. The information submitted via the forms

is not encrypted.

Information collected via on-line forms is sent to our offices

via email (not encrypted) and may also be stored on local

email and/or servers which are accessible by IBL staff only

and is password protected.

Will we disclose the information we collect to anyone?

We do not sell, trade, or rent your personal information to

others.

We may need to provide your information to contractors

who supply services to us, eg to handle mailings on our

behalf, external data storage providers or to other

companies in the event of a corporate sale, merger,

reorganisation, dissolution or similar event. However, we will

do our best to ensure that they protect your information in

the same way that we do.

We may provide your information to others if we are

required to do so by law, you consent to the disclosure or

under some unusual other circumstances which the Privacy

Act permits.

How can you check, update or change the information we

are holding?

Upon receipt of your written request and enough

information to allow us to identify the information, we will

disclose to you the personal information we hold about you.

We will also correct, amend or delete any personal

information that we agree is inaccurate, irrelevant, out of

date or incomplete.

If you wish to access or correct your personal information

please write to our Compliance Manager at the address

noted above.

We do not charge for receiving a request for access to

personal information or for complying with a correction

request. We do not charge for providing access to personal

information.

In some limited cases, we may need to refuse access to your

information, or refuse a request for correction. We will advise

you as soon as possible after your request if this is the case

and the reasons for our refusal. If you do not agree with our

refusal you may request the decision to be reviewed via our

internal complaints handling policy.

What happens if you want to complain?

If you have concerns about whether we have complied with

the Privacy Act or this Privacy Policy when collecting or

handling your personal information, please write to our

Compliance Manager at the address noted above.

Your complaint will be considered by us through our internal

complaints resolution process and we will try to respond with

a decision within 45 days of you making the complaint.

Your consent

By asking us to assist with your insurance needs, you consent

to the collection and use of the information you have

provided to us for the purposes described above.

Tell us what you think

We welcome your questions and comments about privacy. If

you have any concerns or complaints, please contact our

Compliance Manager on the number listed above.

Duty of Disclosure Before you enter into a contract of general insurance with an

Insurer, you have a duty under the Insurance Contracts Act

1984 (Cth) to disclose to the Insurer every matter that you

know, or could reasonably be expected to know, is relevant

to the Insurer’s decision whether to accept the risk of the

insurance and, if so, on what terms.

You have the same duty to disclose those matters to the

Insurer before you renew, extend, vary or reinstate a

contract of general insurance. Your duty however, does not

require disclosure of matter–

that diminishes the risk to be undertaken by the

Insurer;

that is of common knowledge;

that your Insurer knows or, in the ordinary course of

its business, ought to know;

as to which compliance with your duty is waived by

the Insurer.

It should be noted that this duty continues after the proposal

form has been completed up until the Policy is entered into.

Non Disclosure

If you fail to comply with your duty of disclosure, the Insurer

may be entitled to reduce its liability under the contract in

respect of a claim or may cancel the contract. If your non-

disclosure is fraudulent, the Insurer may also have the option

of avoiding the contract from its beginning.

It is therefore vital that you enquire of all principals and

senior staff before you complete your proposal form, and

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before you sign any declaration that there has been no

change in the information disclosed.

Agent of the Insurer Please note that in arranging the contract of insurance, we

are acting under an authority given to us by the insurer, and

we will be effecting the contract of insurance as agent of the

insurer, and not as your agent.

General Insurance Code of Practice We support and adhere to the General Insurance Code of

Practice. A copy of the code can be obtained from the

Insurance Council of Australia by visiting

www.codeofpractice.com.au or phoning (02) 9253 5100.

Retroactive Liability The insurance does not provide cover in relation to acts,

errors or omissions that occurred prior to the

commencement of this insurance unless the policy is

extended accordingly.

Average Provision One of the insuring provisions of the professional indemnity

insurance policy provides that where the amount required to

dispose of a claim or claims exceeds the limit of indemnity in

the policy then the insurer shall be liable only for a

proportion of the total costs and expenses. This shall be the

same proportion of the total expenses as the policy limit

bears to the total amount required to dispose of the claim or

claims.

Surrender or Waiver of any Right of

Contribution or Indemnity Where another person or company would be liable to

compensate you or hold you harmless for part, or all, of any

loss or damage otherwise covered by the policy, but you

have agreed with that person either before or after the

inception of the policy that you would not seek to recover

any loss or damage from that person, you are not covered

under the policy for any such loss or damage.

Other information you should know Upon receipt of your unqualified written acceptance of the

quotation terms offered, and subject to the total premium

payable we will place your insurance cover.

Making a Claim Planned Professional Risks Underwriting Agency acts as

agent of the insurer, in relation to receiving and managing

claims.

The Claim Process

Claims or notifications must be reported in writing by

completing a notification form which can be obtained by

telephoning 1800 234 338, emailing cm@focusuw.com.au or

from www.focusuw.com.au. Do not make any statement on

the notification form that could be construed as an admission

of fault. Confine your notification to statements of fact, and

leave expressions of opinion for later discussion with a Claims

Manager.

If the matter is urgent, advice can be obtained from one of

our legally qualified Claims Managers on telephone number

1800 234 338

Return the completed notification form with any supporting

documents to:

Focus Underwriting Level 21, 41 Exhibition Street Melbourne 3000 Fax: (03) 9500 2274 Email: cm@focusuw.com.au

Receipt of your notification form will be acknowledged in

writing. A Claims Manager will then evaluate the matter, and

contact you if necessary, to obtain further information that

may be required, and advise you as to the steps to be taken

in the management of the matter.

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INDEX

Important Notices i

Introduction i

Introduction i

Privacy Notice i

Duty of Disclosure ii

Agent of the Insurer iii

General Insurance Code of Practice iii

Retroactive Liability iii

Average Provision iii

Surrender or Waiver of any Right of Contribution or

Indemnity iii

Other information you should know iii

Making a Claim iii

Professional Indemnity Insurance Policy 3

SECTION 1 – INSURING CLAUSES 3

1.1 Indemnity Clause 3

1.2 Additional Benefits 3

1.2.1 Libel and Slander 3

1.2.2 Principal’s Previous Business 3

1.2.3 Breach of Contract 3

1.2.4 Intellectual Property 3

1.2.5 Joint Ventures 4

1.2.6 Severability and Non-Imputation 4

1.2.7 Outgoing Principals 4

1.2.8 Project/Construction Managers 4

1.2.9 Prior Corporate Entity 5

1.2.10 Employee Dishonesty 5

1.2.11 Continuity of Cover 5

1.2.12 Inquiry and Hearings Representation Costs 6

1.2.13 Loss of Documents 6

1.2.14 Consultants, Sub-Contractors and Agents 7

1.2.15 Retroactive Cover 7

1.2.16 Fidelity 7

1.2.17 Court Attendance 7

1.2.18 Novation 7

1.2.19 Public Relations Expenses 8

1.2.20 Claims Preparations Costs 8

SECTION 2 – EXCLUSION 9

2.1 Claims and Circumstances Known at Inception 9

2.2 Dishonesty 9

2.3 Insolvency 9

2.4 Assumed Liability 9

2.5 Director’s Liability 9

2.6 Occupier’s Liability 9

2.7 Employer’s Liability 9

2.8 Waiver of Rights 9

2.9 Professional Fees 9

2.10 Trading Debts 9

2.11 Real Estate Developer, Builder, Manufacturer 9

2.12 Goods Sold 9

2.13 Joint Venture, Project or Construction Business 9

2.14 Other Business 10

2.15 Related Parties 10

2.16 Jurisdiction and Territory 10

2.17 Taxes and Punitive Damages 10

2.18 Aircraft 10

2.19 War/Terrorism 10

2.20 Nuclear Risks 10

2.21 Asbestos 10

2.22 Toxic Mould 10

2.23 Pre-purchase Building Inspections 11

SECTION 3 - CONDITIONS 12

3.1 Notification of Claims 12

3.2 Defence and/or Settlement 12

3.3 Deductible 12

3.4 Subrogation 12

3.5 Insurer’s Right to Contest 12

3.6 Claims Co-operation 12

3.7 Senior Counsel 12

3.8 Joint and Several Liability 12

3.9 Multiple Claims 13

3.10 Cancellation 13

3.11 Notices 13

3.12 Headings 13

3.13 GST 13

3.14 Governing Law 13

3.15 Insurers Several Liability 13

3.16 Complaints Handling and General Insurance Code of

Practice 13

3.17 Service of Suit 13

SECTION 4 - DEFINITIONS 15

4.1 Adverse Publicity Event 15

4.2 Appropriate Professional Qualifications: 15

4.3 Business: 15

4.4 Claim: 15

4.5 Continuity Date: 15

4.6 Costs and Expenses: 15

4.7 Deductible: 15

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4.8 Employee: 15

4.9 Inception Date of the Policy: 15

4.10 Insured: 15

4.11 Insurer: 15

4.12 Joint Venture: 15

4.13 Known Circumstances: 16

4.14 Legal Proceedings: 16

4.15 Limit of Indemnity: 16

4.16 Outgoing Principals: 16

4.17 Period of Insurance: 16

4.18 Policy: 16

4.19 Premium: 16

4.20 Principal: 16

4.21 Public Relations Expenses: 16

4.22 Schedule: 16

4.23 Senior Counsel: 16

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Professional Indemnity Insurance Policy

In consideration of the Insured named in the Schedule

hereto having agreed to pay to us who have hereunto

subscribed our names (hereinafter called “the Insurer”)

the Premium mentioned herein.

The Insurer agrees in accordance with the insuring

clauses of and subject to the conditions expressed in or

endorsed upon or attached to the Policy that if liability or

loss as specified in the said conditions be incurred by the

Insured

THEN the Insurer will indemnify the Insured the amount

of loss resulting therefrom in accordance with the

provisions herein contained

AND THAT the liability of the Insurer shall in no case

exceed the Limit of Indemnity as specified in the said

Schedule and in accordance with the conditions of the

Policy.

SECTION 1 – INSURING CLAUSES

1.1 Indemnity Clause

The Insurer agrees to indemnify the Insured, in

accordance with the provisions of the Policy, for any

amount which the Insured may become legally liable to

pay up to the Limit of Indemnity as specified in the

Schedule for any Claim(s) first made against the Insured

during the Period of Insurance and arising from the

conduct of the profession stated in the Schedule and

notified in writing to the Insurer during the Period of

Insurance, for legal liability for any Claim(s) caused or

arising by reason of any civil liability whatsoever and

howsoever incurred (including any breach of the

provisions of the Competition and Consumer Act

2010(Cth), the Fair Trading Act 1987(NSW), the Fair

Trading Act 1985 (Vic) or similar legislation enacted by

the other states or territories of the Commonwealth of

Australia or the Dominion of New Zealand, which does

not constitute a breach of the penal or criminal

provisions of those statutes) in connection with the

Business of the Insured committed or alleged to have

been committed subsequent to the retroactive date

specified in the Schedule.

In addition, the Insurer will pay the Costs and Expenses

incurred with the Insurer’s prior written consent, in the

investigation, defence or settlement of any such Claim(s)

up to an amount equal to, but not exceeding in the

aggregate for all Costs and Expenses, the Limit of

Indemnity in respect of any one Claim or series of Claims

arising out of one causal event. If payment exceeding

the Limit of Indemnity has to be made to settle a Claim or

series of causally related Claims against the Insured, the

Insurer’s liability for such Costs and Expenses shall be

such rateable proportion as the Limit of Indemnity bears

to the amount required to be paid in settlement of such

Claim(s) but not, in any event, exceeding in the

aggregate the amount equal to the Limit of Indemnity.

1.2 Additional Benefits

For the avoidance of doubt, the following coverage is

provided in accordance with, and subject to, the terms,

conditions, exclusions and limitations of the Policy.

1.2.1 Libel and Slander The Insurer will indemnify the Insured in respect of any

Claim made against the Insured, by any person, for libel

or slander by reason of words written or spoken

provided that such Claim arises out of or in the course of

the conduct of the Business of the Insured.

1.2.2 Principal’s Previous Business Provided that the Principal(s) was a qualified Principal of

a prior professional practice(s) noted in the proposal

then, notwithstanding Exclusion 2.14 (Other Business)

the Policy shall indemnify such Principal(s) in respect of

Claims otherwise within the scope of the Policy arising

from that prior professional practice(s).

For the purposes of this clause the retroactive date

shown in the Schedule shall read without limitation of

date but Claims arising from Known Circumstances are

excluded from cover.

1.2.3 Breach of Contract The Insurer will indemnify the Insured in respect of any

Claim made against the Insured for breach or alleged

breach of contract for the provision of professional

services in the conduct of the Business of the Insured.

1.2.4 Intellectual Property The Insurer will indemnify the Insured in respect of any

Claim made against the Insured for any inadvertent

infringement in the conduct of the Business of the

Insured of copyright, moral rights, trademarks,

registered designs or patents, or any breach of

confidentiality.

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1.2.5 Joint Ventures In relation to Claims against the Insured in its

professional capacity as a Joint Venture partner:

a. The Insurer will indemnify the Insured for the

Insured’s civil liability for Claims first made against

the Insured within the Period of Insurance in its

professional capacity as a Joint Venture partner

providing the person(s) allegedly responsible for

the civil liability hold Appropriate Professional

Qualifications and:

i. the Insured had disclosed the nature of

the Joint Venture to the Insurer before the

Insured knew or ought reasonably to have

known of circumstances which might give

rise to the Claim; and

ii. the Insured has declared fees derived

from the Joint Venture where required to

do so by the Insurer.

b. If subclause (a) applies and the Insured and the

other Joint Venture partner(s) have agreed in their

Joint Venture Agreement that all Claims against the

Joint Venture will be apportioned between them

on a fixed percentage basis without regard to fault,

then provided that the agreed apportionment is

proportionate to the extent of the Insured’s

obligations under the agreement and is fair and

reasonable taking account of the total fees the

Insured is to derive from the Joint Venture,

exclusion clauses 2.4 and 2.8 shall not apply to that

apportionment;

c. Without affecting subclause (b), the Insurer is

entitled to exercise subrogation rights contained in

clause 3.4 of this Policy;

d. Where the Insured has not disclosed the Joint

Venture to the Insurer in accordance with

subclause (a), and/or where required by the

Insurer, the Insured has not declared the fees from

the Joint Venture:

i. the Insurer will only indemnify the Insured

in relation to a Claim arising out of a Joint

Venture, including a Third Party Claim,

where the Claim directly relates to a

breach of the Insured’s professional duty,

but only on the condition that the Insured

pay the additional premium that would

have been applied if the Insured had

made the disclosures to the Insurer as

required;

ii. where indemnity is extended to the Insured

under subclause (d) (i) the Insurer’s liability is

limited to the extent of the Insured’s civil

liability arising from the Claim and the Insurer

will not indemnify the Insured for any legal or

contractual liability or other legal obligations

assumed under the Joint Venture or otherwise

by agreement unless such liability would have

attached to the Insured in the absence of such

agreements.

1.2.6 Severability and Non-Imputation The Insurer agrees that where the Policy insures more

than one party, any conduct on the part of any party or

parties whereby such party or parties:

a. failed to comply with the duty of disclosure in

terms of the Insurance Contracts Act 1984 (Cth);

or

b. made a misrepresentation to the Insurer before

this contract of insurance was entered into; or

c. failed to comply with any terms or conditions

of the Policy;

shall not prejudice the right of the remaining parties to

indemnity as may be provided by the Policy; provided

always that such remaining parties shall be entirely

innocent of and have had no prior knowledge of any

such conduct.

1.2.7 Outgoing Principals The Insurer agrees to provide coverage in respect of any

Claim made against any former partner, director,

Principal or Employee of the Insured or any entity as

disclosed in the proposal that previously directed the

business now being conducted by the Insured for any

civil liability incurred on the part of such person in the

conduct of the Business of the Insured.

1.2.8 Project/Construction Managers Where the Insured is retained for a fee or other benefit

as Project or Construction Manager then the Policy shall

provide coverage to the Insured in accordance with

clause 1.1 (Indemnity Clause) but only in respect of

design consultancy, project construction co-ordination

or advice where such activities are carried out by

persons holding Appropriate Professional Qualifications

to perform the Insured’s professional duty.

However, the Policy shall not cover Claims arising from:

a. failure to procure or maintain any financing

for the payment of contract work or

services in connection therewith for any

cause whatsoever;

b. the final cost of a project or any part

thereof exceeding a pre-set financial limit

to which the Insured agreed to be bound;

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c. any incorrect inadequate or misleading

representations or estimates by the Insured

in relation to profit or return on capital;

d. bankruptcy, liquidation or insolvency of any

of the parties involved in the project;

e. use or repair of any real or personal

property or ownership, rental, occupation,

deemed occupation, leasing, maintenance

or operation of any real or personal

property;

f. bodily injury, sickness, disease or death

sustained in the course of their

employment to or of any person arising out

of their employment by the Insured under

either a contract of service or an

apprenticeship with the Insured.

1.2.9 Prior Corporate Entity In the event of a Claim against the incorporated

body(ies) disclosed in the proposal who have previously

directed the business now being conducted by the

Insured firm or incorporated body, the Policy will, to the

extent and in the manner provided for herein, extend, at

the express written request of the Insured, and on the

agreement of the Insurer, made subsequent to the

notification to the Insurer, and upon the written

agreement of the Insured incorporated body(ies) to be

bound by all the terms, exclusions and conditions of the

Policy, to indemnify such incorporated body(ies) as if

they were named Insured PROVIDED ALWAYS THAT the

Policy shall not respond to any Claim made against the

said incorporated body(ies) named in the said proposal

arising from work undertaken after the conduct of such

business has passed to the Insured firm or incorporated

body, unless such work was undertaken in the conduct

by the Insured of the profession stated in the Schedule.

The Insured identified in the Schedule shall be jointly and

severally liable for the payment of the Deductible on

behalf of the named incorporated body(ies).

1.2.10 Employee Dishonesty For the purposes of this Clause 1.2.10 an Employee shall

mean a person or persons in the direct service of the

Insured but in the case of an incorporated body shall

exclude any director.

Provided a dishonest fraudulent criminal or malicious act

or omission is not committed by the Insured, the Insurer

shall indemnify the Insured, in accordance with Clause 1.1

(Indemnity Clause) hereof for any Claim(s) arising from

the conduct of its professional Business, for legal liability

to third parties by reason of:

a. dishonest, criminal, fraudulent or malicious

acts or omissions of an Employee of the

Insured; or

b. misappropriation or theft of funds by an

Employee, provided that all funds were

maintained by the Insured in separate trust

accounts subject to independent annual

audit by a qualified Accountant and that all

such accounts require(d) not less than two

authorised signatories for all payments.

Indemnity under this Additional Benefit shall be limited

to the Limit of Indemnity specified in the Schedule and

that no indemnity shall be given for civil liability involving

the same Employee(s) where there have been previous

notifications under this benefit.

1.2.11 Continuity of Cover Notwithstanding the provisions of Clause 1.1 (Indemnity

Clause), the exclusions of the Policy and only in the

absence of fraudulent non disclosure, the Insurer will

accept Claim notification under the Policy where:

a. a Claim is made during the currency of the

Policy against the Insured by reason of a

fact or circumstance which occurred prior

to the Period of Insurance shown in the

Schedule; and

b. the Insurer was the Insured’s professional

indemnity Insurer at the time when the

Insured first became aware of the

circumstance(s) which subsequently gave

rise to the Claim; and

c. but for the failure of the Insured to have

notified the Insurer of the Known

Circumstance(s) when the Insured first had

knowledge of such circumstance(s), the

Insured would otherwise have been entitled

to indemnity in accordance with the terms

and conditions of the Policy in force at the

time the circumstance(s) ought to have

been notified; and

d. the Insurer has continuously been the

Insured’s professional indemnity Insurer

from the date when the Insured first

became aware of the Claim circumstance(s)

in respect of which notification should have

been given and the date when such

notification was given.

Notwithstanding the above, the indemnity provided by

this Additional Benefit shall be the lesser of the available

Limit of Indemnity under the Policy or the earlier Policy

and otherwise subject to the terms and conditions

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provided under the Policy. For the purposes of this

Clause 1.2.11, insofar as the Insured was insured through

Planned Professional Risks Underwriting Agency at the

time when the Insured first became aware of the

circumstance(s) which subsequently gave rise to the

Claim after the Continuity Date and remained

continuously insured through Planned Professional Risks

Underwriting Agency up to the date of commencement

of this Policy, the provisions of this clause apply as

though the previous insurer(s) was the Insurer.

1.2.12 Inquiry and Hearings Representation

Costs 1.2.12.1 Coronial Inquests

Where the Insured is required by law to attend any

Coronial Inquest arising directly from or out of an

occurrence in connection with the conduct by the

Insured of the profession stated in the Schedule, the

Insurer shall pay all reasonable legal costs, charges and

expenses arising out of the legal representation incurred

by the Insured with the prior written consent of the

Insurer.

1.2.12.2 Registration Board Proceedings

In so far as any complaint (which may form the basis of a

Claim against the Insured as covered by the Policy)

lodged during the Period of Insurance against the Insured

with any professional regulatory authority, or in so far as

any statutory or professional body claims jurisdiction to

enquire into or adjudicate in any such matter, relates to a

Claim, or circumstances which may give rise to a Claim,

under the Policy then the Policy shall pay, within the

terms, including limits, of Clause 1.1 (Indemnity Clause) of

the Policy, all reasonable costs, charges and expenses

incurred by or on behalf of the Insurer or by or on behalf

of the Insured with the Insurer’s prior written consent, in

respect of the investigation and defence of the Insured

at such proceedings.

1.2.12.3 Safe Design Investigations, Examinations and

Prosecutions

Notwithstanding Exclusion 2.17 (Taxes and Punitive

Damages) the Insurer will:

a. indemnify the Insured for any fine or pecuniary

penalty in respect of a proceeding, official

investigation or notice issued against,

commenced or served upon the Insured during

the Period of Insurance pursuant to legislation in

Australia alleging (or which might result in an

allegation) that the Insured has breached

occupational workplace health and safety laws;

b. indemnify the Insured for any compensatory civil

penalty awarded in the jurisdiction of Australia

during the Period of Insurance; and

c. pay all reasonable costs, charges and expenses

incurred by the Insured with the prior written

consent of the Insurer in the defence of any fine or

penalty which, if imposed, would be indemnified by

a or b above.

1.2.12.4 Limit of Cover

Indemnity under this Additional Benefit 1.2.12 (Inquiry,

Hearings and Prosecution Representation Costs) is

limited to Three Hundred and Fifty Thousand dollars

($350,000.00) in the aggregate during the Period of

Insurance. The Excess as specified in the Schedule does

not apply to additional benefit 1.2.12.1, 1.2.12.2 or 1.2.12.3

c.

1.2.13 Loss of Documents If during the Period of Insurance the Insured shall first

discover that any documents as defined by this clause,

the property of or entrusted to the Insured, which may

be now or hereafter be, or be supposed or believed to

be, in the custody of the Insured, or in the custody of any

person to or with whom such documents have been

entrusted, lodged or deposited by the Insured in the

ordinary course of the Business have while within

Australia or New Zealand (or while in transit in and

between Australia and New Zealand or by land, sea or air

anywhere in the world until delivery to the addressee or

their representatives) been destroyed, damaged, lost or

mislaid and after diligent search cannot be found, the

Insurer shall indemnify the Insured against:

a. legal liability which may attach to the

Insured in consequence of such documents

having been so destroyed, damaged, lost or

mislaid, and

b. Costs and Expenses of whatsoever nature

incurred by the Insured in replacing or

restoring such documents provided that

such Costs and Expenses shall be supported

by accounts approved by a competent

person nominated by the Insurer.

PROVIDED ALWAYS THAT:-

a. no indemnity shall be afforded in respect of

any loss brought about by wear and tear

and other gradually operating cause(s), and

b. the expression “documents” shall in this

clause mean deeds, wills, agreements,

maps, plans, books, letters, forms and

documents of any nature whatsoever

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including computer printouts, magnetic

tape and/or discs or other like means of

recording information for use with any

computer recording system but shall not

mean or extend to bearer bonds, coupons,

bank notes, currency notes or negotiable

instruments, and

c. the Policy does not insure loss or damage to

documents the contents of which are

unknown to the Insured at the time such

loss or damage occurs.

1.2.14 Consultants, Sub-Contractors and

Agents The Insurer agrees to provide coverage in respect of any

Claim made against the Insured arising from any conduct

giving rise to civil liability committed or alleged to have

been committed on the part of any consultant,

subcontractor or agent for whose conduct the Insured is

legally liable PROVIDED ALWAYS THAT such coverage

shall not extend to any such consultant, subcontractor

or agent.

1.2.15 Retroactive Cover Unless a retroactive date is specified in the Schedule, the

Policy shall provide cover in respect of civil liability or

alleged civil liability irrespective of when the Insured’s

conduct giving rise to the civil liability or alleged civil

liability occurred.

Where a retroactive date is specified in the Schedule, the

Policy shall only provide cover in respect of civil liability

or alleged civil liability where the Insured’s conduct

giving rise to the civil liability or alleged civil liability

occurred after the retroactive date.

1.2.16 Fidelity The Insurer shall indemnify the Insured against loss of

money belonging to or held in trust by the Insured

caused directly by any act of fraud or dishonesty

committed by any Employee or Principal of the Insured in

the conduct of the Business and discovered and notified

to the Insurer during the Period of Insurance.

PROVIDED ALWAYS THAT:

a. no person committing or condoning such fraud or

dishonesty shall be entitled to indemnity;

b. the Insured must immediately take all reasonable

steps to prevent further loss;

c. if the Insurer so requests the Insured shall take all

reasonable steps to effect recovery from the

person committing or condoning such fraud or

dishonesty;

d. the following will be deducted from any amount

payable under this Policy;

i. any monies which but for such fraud or

dishonesty would be due from the

Insured to the person committing or

condoning such act;

ii. any monies held by the Insured and

belonging to such person; and

iii. any monies recovered following action as

described in c above;

e. the Insurer shall not be liable in respect of any

Claim arising from any fraud or dishonesty

committed by any person after the discovery in

relation to that person of reasonable cause for

suspicion of fraud or dishonesty; and

f. the total amount payable by the Insurer under this

Additional Benefit shall not exceed $50,000 during

the Period of Insurance.

Notwithstanding the Deductible as specified in the

Schedule, the Deductible applicable to this Additional

Benefit 1.2.16 shall be $5,000 during the Period of

Insurance.

1.2.17 Court Attendance The Insurer agrees to pay the court attendance costs of

any Principal or Employee of the Insured who is legally

required to attend court as a witness in respect of any

Claim covered by the Policy, to an amount not exceeding

$500 per day for Principals and $250 per day for

Employees.

Indemnity under this Additional Benefit 1.2.17 Court

Attendance is limited to $1,000 per day and $10,000 in

the aggregate during the Period of Insurance. The

Deductible as specified in the Schedule, does not apply to

this Additional Benefit.

1.2.18 Novation The Insurer will indemnify the Insured in respect of any

Claim made against the Insured arising out of the Insured

having entered into a Deed of Novation provided that

this clause does not extend the Policy to cover:

a. liabilities that were not otherwise covered

by the Policy prior to novation; or

b. any additional or duplicated liability where

the Deed of Novation imposes upon the

Insured liability to both the original client

and the new client in respect of the same

professional services.

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Deed of Novation means a deed or agreement which

provides that the professional services contract between

the Insured and the Insured’s original client will be

novated so that the rights and obligations of the

Insured’s original client under the professional services

contract are assumed by a new client.

1.2.19 Public Relations Expenses The Insurer will indemnify the Insured for Public Relations

Expenses incurred by the Insured in respect of an Adverse

Publicity Event that first occurs and is notified to the

Insurer during the Period of Insurance. The total liability

of the Insurer under this extension is limited to $100,000

in the aggregate during the Period of Insurance.

Notwithstanding the Deductible as specified in the

Schedule, the Deductible applicable to this subclause

shall be $1,000 each and every Claim.

1.2.20 Claims Preparations Costs The Insurer will pay up to $25,000 in the aggregate

during the Period of Insurance for reasonable

professional fees and such other expenses payable by

the Insured to third parties with the Insurer’s prior

written consent, which consent will not be unreasonably

withheld, for the preparation of any Claim that is covered

by this Policy.

This amount is in addition to the Limit of Indemnity.

Provided that such claims preparation costs shall not

include any Costs and Expenses.

Notwithstanding the Deductible as specified in the

Schedule, the Deductible applicable to this subclause

shall be Nil.

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SECTION 2 – EXCLUSION

The Insurer shall not be liable for any Claim(s) or loss

(including Costs and Expenses) arising from or in respect

of or as a result of:

2.1 Claims and Circumstances Known at

Inception any Claim made against the Insured prior to the

commencement of the Period of Insurance; nor in respect

of any Claim(s) or circumstance(s) notified under any

previous policy; nor in respect of any Claim(s) or Known

Circumstances; nor in respect of any Claim(s) or

circumstance(s) noted on the proposal form, declaration

or underwriting information being the basis of the Policy.

2.2 Dishonesty any actual or alleged dishonest, fraudulent, malicious,

criminal or deliberate conduct of or on behalf of the

Insured, or any Employee(s) of the Insured or agent(s) of

the Insured other than as provided for under Additional

Benefit 1.2.10 (Employee Dishonesty).

2.3 Insolvency the insolvency or bankruptcy or liquidation of the

Insured.

2.4 Assumed Liability any liability assumed by the Insured under any express

warranty, guarantee or agreement unless such liability

would have attached to the Insured notwithstanding

such express warranty, guarantee or agreement.

2.5 Director’s Liability liability or alleged liability of the Insured or any Principal

of the Insured arising solely from the duties of the

Insured or such Principal as a director or officer of any

company.

2.6 Occupier’s Liability liability incurred or alleged to have been incurred as a

result of any occupation or ownership of any real

property by the Insured.

2.7 Employer’s Liability bodily injury, mental injury, sickness, disease or death of

any Employee of the Insured or damage to or destruction

of any property of any Employee, including loss of use,

arising out of, or in the course of, their employment.

2.8 Waiver of Rights the Insured having at any time forgone, excluded or

limited a right of recovery.

2.9 Professional Fees any action for a refund of professional fees whether by

way of damages or otherwise.

2.10 Trading Debts any trading debt incurred or alleged to have been

incurred by the Insured or any guarantee given by the

Insured or alleged to have been given for any debt.

2.11 Real Estate Developer, Builder,

Manufacturer arising directly or indirectly from the Insured undertaking

or allegedly undertaking:

a. the manufacture, sale or distribution of any

product or process or patented production

process (including any breach of any

express or implied warranty);

b. construction, fabrication, erection,

installation, assembly, alteration, repair or

servicing activities or any form of building

contracting;

c. faulty or inadequate workmanship;

d. real estate or property development by or

on behalf of the Insured. However, this

Exclusion shall not apply to Claim(s) by

independent third parties arising out of the

actual or alleged negligence of the Insured

in the conduct of the Business of the

Insured.

2.12 Goods Sold the sale or supply of goods by or on behalf of the

Insured.

2.13 Joint Venture, Project or Construction

Business any activities or the performance of or by the Insured of

services, where the Insured:

a. was involved as a joint venturer or partner,

or

b. acted as a Project or Construction Manager

except where otherwise expressly covered elsewhere in

the Policy.

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2.14 Other Business the conduct of any Business not conducted by or on

behalf of the Insured or for the benefit of the Insured.

2.15 Related Parties any matter(s) in respect of which a Claim is made against

the Insured:

a. by any person or entity named as an Insured in

the Policy; or

b. by any company or trust operated or controlled

by an Insured and/or by Employees, nominees or

trustees of an Insured or in which that Insured

or that Insured’s spouse or child has a direct or

indirect financial interest; or

c. by any person or entity advised or induced by

the Insured or by anyone acting on the Insured’s

behalf to invest in or lend money to any

company being a company or trust referred to

in the preceding subclause, or to any person or

entity named as an Insured under the Policy; or

d. by the Insured’s spouse, de facto partner or

child;

except where a Claim by a party referred to in subclause

a, b or d above seeks contribution from an Insured to a

claim made by a third party (not being a party referred to

in subclauses a-d above) and that Claim, if made directly

against the Insured, would have been covered by the

Policy.

2.16 Jurisdiction and Territory a. any Claim or action brought in a Court of law or

pursuant to an arbitral process within the territorial limits of, or governed by the laws of, the United States of America or Canada or their territories or protectorates;

i. or b. the enforcement of any judgment, order or

award obtained within, or determined pursuant to, the laws of the United States of America or Canada or their territories or protectorates; or

c. any act, error or omission committed or alleged

to have been committed within the territorial

limits of the United States of America or

Canada or their territories or protectorates.

2.17 Taxes and Punitive Damages punitive and/or exemplary and/or aggravated damages,

fines and/or penalties imposed by law and/or taxes

(other than GST).

2.18 Aircraft the ownership, use, maintenance or operation of any

aircraft, boats, automobiles or vehicles of any kind by or

on behalf of the Insured.

2.19 War/Terrorism a. war, invasion, acts of foreign enemies, or

hostilities (whether war is declared or

otherwise); or

b. insurrection, civil or military uprising,

rebellion, civil war or usurped power; or

c. terrorism; being any act of any person or

group of people, involving the use of or

threat of force or violence, where the

purpose of the act by its nature or context

is to further a political, religious or

ideological aim and/or to intimidate or

influence a government (whether lawfully

constituted or otherwise), the public or any

section of the public; or

d. the confiscation, nationalisation, requisition

or destruction of, or damage to, any

property by or under order (whether lawful

or otherwise) of any government, public or

local authority; or

e. the imposition of any economic, trade or

political sanctions (whether lawful or

otherwise) by any sovereign power.

2.20 Nuclear Risks a. ionising radiation or contamination by

radioactivity from any nuclear fuel,

weapon, medical isotope, waste or other

material whether occurring naturally or

otherwise; or

b. the radioactive, toxic, explosive or other

hazardous properties of any explosive

nuclear assembly or nuclear component

thereof; or

c. the storage, transport, assembly,

disassembly, maintenance or operation of

any nuclear weapon or nuclear component

thereof.

2.21 Asbestos arising directly or indirectly out of or resulting from or in

consequence of, or in any way involving asbestos, or any

materials containing asbestos in whatever form or

quantity.

2.22 Toxic Mould arising directly or indirectly out of or resulting from or in

consequence of, or in any way involving:

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a. the actual, potential, alleged or threatened

formation, growth, presence, release or

dispersal of any fungi, moulds, spores or

mycotoxins of any kind; or

b. any action taken by any party in response

to the actual, potential, alleged or

threatened formation, growth, presence,

release or dispersal of fungi, moulds, spores

or mycotoxins of any kind, such action to

include investigating, testing for, detection

of, monitoring of, treating, remediating or

removing such fungi, moulds, spores or

mycotoxins; or

c. any governmental or regulatory order,

requirement, directive, mandate or decree

that any party take action in response to

the actual, potential, alleged or threatened

formation, growth, presence, release or

dispersal of fungi, moulds, spores or

mycotoxins of any kind, such action to

include investigating, testing for, detection

of, monitoring of, treating, remediating or

removing such fungi, moulds, spores or

mycotoxins.

2.23 Pre-purchase Building Inspections Any pre-purchase building inspection activities

undertaken or allegedly undertaken by or on behalf of

the Insured.

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SECTION 3 - CONDITIONS

3.1 Notification of Claims All Claims must be immediately notified to the Insurer in

accordance with Clause 1.1 (Indemnity Clause) regardless

of whether or not the Insured believes the quantum of

any such Claim is likely to be within or above the amount

of the Deductible specified in the Schedule.

3.2 Defence and/or Settlement Subject to the provisions of the Insurance Contracts Act

1984 (Cth), the Insured shall not admit liability for or

settle any Claim (including any threat or intimation of a

Claim or any circumstances which may give rise to a

Claim, notified to the Insurer during the Period of

Insurance) or incur any Costs or Expenses in connection

therewith without the prior written consent of the

Insurer who shall be entitled to take over and conduct in

the name of the Insured the defence and/or settlement

of any Claim.

3.3 Deductible In respect of each and every Claim made against the

Insured, the Deductible specified in the Schedule shall be

borne by the Insured at the Insured’s own risk and

uninsured. The Insurer shall be liable to indemnify the

Insured only for the difference between the amount of

the Deductible and the amount of the Limit of Indemnity,

provided always that the indemnity for Costs and

Expenses incurred with the prior written consent of the

Insurer shall not be subject to the Deductible.

Where the Insurer has paid a Claim inclusive of the

amount of the Deductible the Insured shall pay the

amount of the Deductible on demand to the Insurer.

3.4 Subrogation The Insurer shall be entitled to claim indemnity or

contribution at any time in the name of the Insured from

any party against whom the Insured may have such

rights provided always that the Insurer shall not exercise

any subrogated rights of recovery against any Employee

of the Insured unless the Claim has been brought about

or contributed to by the dishonest, fraudulent, criminal

or malicious act or omission of the Employee.

3.5 Insurer’s Right to Contest If the Insured refuses to consent to any settlement of

any Claim recommended by the Insurer and elects to

contest or continue any Legal Proceedings in connection

with such Claim, the Insurer’s liability shall not exceed

the amount for which the matter could have been so

settled (subject to the aggregate Limit of Indemnity) less

the Deductible specified in the Schedule together with

Costs and Expenses incurred up to the date of such

refusal.

3.6 Claims Co-operation At the Insured’s own expense, the Insured shall give to

the Insurer all such information and assistance as they

may reasonably require to enable them to investigate

and defend any Claim or any litigation against the Insured

or in the prosecution of any recovery action by the

Insurer and/or to enable the Insurer to determine their

liability under the Policy. The Insured agrees to waive any

right to claim legal professional privilege to the extent

only that the privilege would otherwise prevent any legal

representative from disclosing information to the

Insurer. The Insured shall, at its own expense, do all such

things reasonably necessary and practicable to avoid or

diminish any loss hereunder.

3.7 Senior Counsel Neither the Insurer nor the Insured shall require the

other to contest or continue to contest any Legal

Proceedings in respect of any Claim unless a Senior

Counsel (to be mutually agreed upon by the Insured and

the Insurer) shall advise that such Claim should be

contested.

In formulating such advice, Senior Counsel shall take into

consideration the economics of the matter, the damages

and costs which are likely to be recovered by the

plaintiff, the likely Costs and Expenses and the prospects

of the Insured successfully defending the Claim.

The cost of such Senior Counsel’s opinion shall be

regarded as part of the Costs and Expenses recoverable

under the Policy.

3.8 Joint and Several Liability Where the Insured is an incorporated body and, where

any legislation provides that directors of the Insured are

jointly and severally liable with the incorporated body for

any civil liability incurred by it, then the Policy shall

indemnify all directors of the Insured in respect of any

liability so imputed, but only to the extent that such

liability would have been covered by the Policy if the civil

action had been taken against the Insured incorporated

body alone. An unqualified Principal (whether a director

or otherwise) is not granted indemnity by reason of this

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PIP 2016.1/03.05.16

provision in respect of civil liability of that Principal

unless the work, the subject of the Claim, is work in

respect of the profession stated in the Schedule and was

being done under the direct supervision or control of a

qualified Principal or a professionally qualified Employee

of the Insured.

3.9 Multiple Claims All causally connected or interrelated civil liabilities shall

jointly constitute a single civil liability under the Policy.

Where conduct of an Insured results in a civil liability or

alleged civil liability and gives rise to more than one

Claim, all such Claims shall jointly constitute one Claim

under the Policy, and only one Limit of Indemnity and one

Deductible shall be applicable in respect of such Claim.

3.10 Cancellation The Insured may cancel the Policy at any time by

notifying the Insurer in writing. The Insurer may cancel

the Policy only in accordance with the relevant

provisions of the Insurance Contracts Act 1984 (Cth) and

shall provide a pro-rata refund of Premium for the

unexpired portion of the Period of Insurance.

3.11 Notices Any notices required to be given to the Insurer including

notification of Claims or applications for indemnity may

be made or notified to Planned Professional Risk

Services, P.O. Box 2257 Caulfield Junction 3161.

3.12 Headings Any headings in the Policy are included for the purpose

of reference only and do not form part of the Policy for

interpretation purposes.

3.13 GST Where under the Policy the Insurer is obliged to

indemnify the Insured against any Claim, or Costs and

Expenses, for which the Insured is entitled to an input tax

credit for the GST, the amount of any such input tax

credit will be deducted from the amount payable by the

Insurer.

3.14 Governing Law The Policy will be governed in accordance with the laws

of Australia. Any disputes relating to interpretation will

be submitted to the exclusive jurisdiction of the courts

of Australia.

3.15 Insurers Several Liability The subscribing Insurers’ obligations under this Policy to

which they subscribe are several and not joint and are

limited solely to the extent of their individual

subscriptions. The subscribing Insurers are not

responsible for the subscription of any co-subscribing

insurer who for any reason does not satisfy all or part of

its obligations.

3.16 Complaints Handling and General

Insurance Code of Practice This insurance complies with the Insurance Council of

Australia’s General Insurance Code of Practice, apart

from any claims adjusted outside Australia.

Underwriters at Lloyd’s proudly support the General

Insurance Code of Practice. The purpose of the Code is

to raise standards of practice and service in the general

insurance industry. Any enquiry or complaint relating to

this Insurance should be referred to the Coverholder

shown above in the first instance. If this does not

resolve the matter or you are not satisfied with the way

a complaint has been dealt with, you should contact:

Lloyd’s Underwriters’ General Representative in Australia Level 9, 1 O’Connell Street Sydney NSW 2000 Telephone Number: (02) 8298 0783

Who will refer your dispute to Policyholder & Market

Assistance at Lloyd’s.

Complaints that cannot be resolved by Policyholder &

Market Assistance may be referred to the Financial

Ombudsman Service (UK). Further details will be

provided at the appropriate stage of the complaints

process.

3.17 Service of Suit

The Insurers hereon agree that:

a. In the event of a dispute arising under this

Insurance, the Insurers at the request of the

Insured will submit to the jurisdiction of any

competent Court in the Commonwealth of

Australia. Such dispute shall be determined in

accordance with the law and practice

applicable in such Court.

b. Any summons notice or process to be served

upon the Insurers may be served upon: Lloyd’s Underwriters’ General Representative

in Australia Level 9, 1 O’Connell Street Sydney NSW 2000 Telephone Number: (02) 8298 0700

who has authority to accept service and to

enter an appearance on the Insurers’ behalf,

and who is directed at the request of the

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Insured to give a written undertaking to the

Insured that he will enter an appearance on the

Insurers’ behalf.

c. If a suit is instituted against any one of the

Insures, all Insurers hereon will abide by the

final decision of such Court or any competent

Appellate Court.

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SECTION 4 - DEFINITIONS

4.1 Adverse Publicity Event means an event which, in the reasonable opinion of a

Principal of the Insured, might cause the reputation of

the Insured to be seriously affected by adverse or

negative publicity.

4.2 Appropriate Professional

Qualifications: means professional qualifications which equip the

person(s) to carry out the work or undertaking required

to be carried out in the conduct of the profession stated

in the Schedule.

4.3 Business: means the carrying out of those functions normally

associated with the conduct of the members of the

profession stated in the Schedule.

4.4 Claim: means:

a. any originating process (in Legal

Proceedings or arbitration), cross claim or

counterclaim or third party or similar notice

issued and served upon an Insured claiming

compensation or alleging any civil liability in

connection with the conduct of the

Business of the Insured; or

b. any written communication received by the

Insured which alleges any civil liability in

connection with the Business of the Insured.

All Claims made against the Insured arising from the same set of circumstances or the same causal event shall be treated as one Claim for the purposes of the Policy.

4.5 Continuity Date: means the date specified in the Schedule.

4.6 Costs and Expenses: means the expenses incurred by or on behalf of the

Insurer, or by or on behalf of the Insured with the

Insurer’s prior written consent, in the investigation,

defence or settlement of a Claim covered by the Policy

and shall include legal costs and disbursements.

4.7 Deductible: means the amount borne by the Insured for each and

every Claim and not otherwise insured. Such amount

shall be net of any input tax credit the Insured may be

entitled to claim for the GST.

4.8 Employee: means a natural person who is not a Principal, who:

a. is engaged by the Insured to provide

professional services in the course of the

conduct of the profession stated in Schedule,

directly for the Insured; and

b. is throughout the engagement directly

controlled and supervised by the Insured in

the course of the conduct of the profession

stated in the Schedule at the time of the

relevant act, error or omission giving rise to a

Claim under the Policy.

4.9 Inception Date of the Policy: means the date on which the Period of Insurance as

specified in the Schedule commences.

4.10 Insured: means:

a. the person, persons, partnership, company,

or other entity specified under the heading

“Insured” in the Schedule including their

predecessors in business, and

b. any person who is or may become, during the

Period of Insurance, a Principal, partner,

director or Employee of anyone or any entity

referred to in sub-clause 4.10(a); and

c. any former Principals, partners, directors or

Employees of any person or entity referred to

in sub-clauses 4.10(a), and only in respect of

work undertaken for and on behalf of any

entity referred to in sub-clause 4.10(a); and

d. the estate, heirs, legal representatives or

legal assigns of any natural person insured

under the Policy in the event of the death or

legal incapacity of such person.

4.11 Insurer: means certain underwriters at Lloyd’s.

4.12 Joint Venture: means an enterprise carried out in common by the

Insured with a third party or parties not being a named

Insured under the Policy and:

a. where the Insured is a co-owner of the joint venture entity along with the third party or parties; or

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b. where the Insured has no legal or equitable interest in the joint venture other than a fee for service.

4.13 Known Circumstances: means any circumstance(s) of which the Insured was

aware at the Inception Date of the Policy and which the

Insured knew or ought reasonably to have known might

give rise to a Claim under the Policy.

4.14 Legal Proceedings: means any proceeding commenced whether by Writ,

Summons, Complaint or the like in any court of law,

other than in the United States of America or Canada or

their territories or protectorates.

4.15 Limit of Indemnity: means the limit of the Insurers(s) liability under the Policy

as specified in the Schedule.

4.16 Outgoing Principals: means any person who was a qualified Principal of the

Insured at any time but who is no longer, or who during

the currency of the Policy ceases to be, a Principal of the

Insured.

4.17 Period of Insurance: means the period shown in the Schedule.

4.18 Policy: means:

a. the Insuring Clauses, Additional Benefits,

Exclusions, Conditions, Definitions and

Schedule herein;

b. the Endorsement(s) attaching to and forming

part hereof either at the commencement of or

during the Period of Insurance;

c. the proposal completed by the Insured; and

d. the fee declaration completed by the Insured.

4.19 Premium: means the premium specified in the Schedule or the

premium relating to any Endorsement to the Policy.

4.20 Principal: means a person being a partner, director or sole

practitioner of the Insured (deemed to be “qualified”

only if, at the time the work giving rise to a Claim

hereunder was undertaken, he or she held the

Appropriate Professional Qualifications) but does not

mean an Employee of the Insured.

4.21 Public Relations Expenses: means the reasonable costs, charges, fees and expenses

of a public relations firm or consultant engaged to

prevent or limit the adverse effects of or negative

publicity from an Adverse Publicity Event, which the

Insured may engage with the prior written consent of

the Insurer, but only during the first thirty days

immediately following the Adverse Publicity Event.

4.22 Schedule: means the schedule to the Policy.

4.23 Senior Counsel: means a barrister in active practice who is entitled to use

the post-nominals Q.C. or S.C. in any one or more

superior court in Australia or New Zealand.