FAQ

Choose your profession or the insurance type your are interested in from the “Get covered” tab and then click on the “get quotes” button most relevant to you.You will then need to answer the questions on the following pages. Once the questions have been answered, the quotations will be provided instantly.

We estimate that from whole process from the beginning to incepting the policy will take 5 minutes.

Our friendly customer service team would be happy to assist you through the internet quotation system. BizCoverBrokers provides an instant online quotation as long as certain criteria are met. If you do not meet these criteria, your application form will be sent to one of our insurance advisors who will contact you within 24 hours.

Quotations are valid for 30 days. If you do not wish to purchase the insurance policy straight away, you will be provided with a username and password, and you can come back later to retrieve your quotation. However, your quotation will be deleted after 30 days.

BizCoverBrokers aims to provide quotations from a range of leading insurers, and we expect our list of insurers to continue to grow over time. Currently, there are four insurers that provide automatic quotes via the BizCoverBrokers website, and these are:

• Chartis, a member company of American International Group, Inc. (AIG)
• DUAL Australia offer policies on behalf of Lloyds of London
• Vero Insurance Ltd (Vero) is a member of the Suncorp Group of companies
• QBE Insurance (Australia) Limited
• Hixcox Insurance Limited

You can start the policy immediately. However, if you are renewing a policy, the policy will commence from the renewal date.

When you initially obtained a quotation, you would have been provided with a username and password. On the homepage of the BizCoverBrokers website, you can login by entering this username and password. You can then view the quotes that were previously obtained.

You will receive an email with you policy documents and a certificate of currency which will confirm that cover is in place. You can also view these documents on the BizCoverBrokers website.

You will receive an email with your policy documentation and invoice immediately upon binding cover

When you receive an email with your policy documents, this will also contain your username and password. On the homepage of the BizCoverBrokers website, you can login by entering this username and password. You can then view your policy online.

BizCoverBrokers receives a commission from the insurer when a policy is incepted. In addition, there may be an administration charge on the policy.

Your credit terms are 60 days from the date start date of the Policy

In order to obtain a quotation, personal information is requested by BizCoverBrokers. This information is solely used to provide you with a quotation and to complete the policy documentation. BizCoverBrokers does not sell or trade customer information.

Yes, you have the ability to make policy amendments during the course of the policy period. On the homepage of the BizCoverBrokers website, you can login by entering this username and password. You can then make policy amendments by clicking the ‘Amendments’ Tab.

You can cancel your policy at any time by providing written notice to BizCoverBrokers. However, due to the Claims Made basis of cover, it is not advisable to do so unless you are absolutely certain that there is no risk of a circumstance or claim arising or being made against you for work already completed. With a Claims Made policy, you will lodge a claim or notice of circumstance with the policy that is in force at the time you become aware of the claim or circumstance – not the policy in force at the time you completed the work from where the claim has emanated (unless it is in the same insurance/policy year, of course). Therefore, once you have completed a contract, it is advisable to keep your policy renewed and updated for as long as possible within the statute of limitations, usually six years in New Zealand. As an example, most retired professionals keep a policy in force for six years after retirement.

The insured may cancel the policy at any time by notifying us in writing. On cancellation of any insurance policy effected through BizCoverBrokers, the commission and any fees paid to BizCoverBrokers are non refundable. The insurers will retain the proportion of the premium calculated pro rata as at the date of the cancellation plus a percent of that amount.
Please refer to any applicable cancellation provisions in the relevant insurer policy wording.

90 days prior to the renewal of your policy, you will be sent an email advising that your policy is due for renewal. You will be provided with login details and a link to enable you to renew your policy with ease.

Click on the ‘Make a Claim’ tab. You will be able to download a claim form which you will need to complete and submit to BizCoverBrokers. BizCoverBrokers will provide this to your insurer, who will handle the claim. Alternatively, you can contact our call centre on 1300 BIZCOVER (1300 249 268).

A claim is usually defined as another party making a verbal or written threat against you seeking compensation for alleged negligence or wrongful actions. A circumstance is a happening or series of happenings that you reasonably suspect may lead to a claim in the future. You should report both claims and circumstances as soon as you become aware of them.

If you are not fully satisfied with our services, you should contact our customer relations officer on 1300 BIZCOVER (1300 249 268). BizCoverBrokers is an Authorised Representative of Mega Capital Pty Ltd who subscribe to the Insurance Brokers’ Dispute Facility, a free consumer service, and the General Insurance Brokers’ Code of Practice. Please click on the following link for further information.

PI insurance policies typically will cover the following:

• The entity, including any subsidiaries (held or acquired during the policy period);
• All past, present or future partners, directors and executives; and
• All past, present or future employees.

PI policies need to provide cover to all persons who provide professional services including those that may not be authorised to provide professional services (e.g. administration staff).

Professional Indemnity insurance is a claims made policy. A claims made policy means that the policy responds to:

• Claims first made against you during the policy period; and
• Events of which you become aware during the policy period, which could give rise to a future claim provided that you notify the Insurer during the policy period of the circumstances of such events.
• Both situations described above are subject to the advice that resulted in the claim circumstance, being provided after the retroactive date.

When the policy expires, no claims can be made on the policy even though the event giving rise to the claim may have occurred during the policy period. It is therefore essential that you always notify the insurer of any events of which you become aware during the policy period, which could give rise to a future claim. Failure to notify
during the current policy period may result in the insurer declining to pay the relevant claim.

PI insurance provides cover for losses sustained by third parties as a result of a breach of your professional duty. This is commonly referred to as Professional Liability. In addition, policies typically cover:

• Misleading and Deceptive conduct;
• Defamation;
• Breach of Intellectual Property Rights;
• Damages arising from Fraud/Dishonesty of employees;
• Defence Costs associated with covered claims.

Extension of cover can also be negotiated for the following:

• Findings and Awards by Dispute Resolution Bodies/ Investigations Costs;
• Lost Documents – for damaged or lost documents that are part of providing professional services;
• Previous Business – for when the entity or persons now providing professional services on behalf of the entity were with another organization;
• Continuous cover – provides cover in certain situations for known circumstances arising prior to the period of insurance, as long as the insured was continuously insured with the same insurer and was insured at the time they first became aware of the known circumstance.

PI insurance policies have a number of exclusions that restrict cover. Many exclusions are common across a number of policies. Some of these include:

• Insured vs Insured Claims
• Claims arising out of Bodily Injury and Property Damage
• Claims arising out of any kind of Pollution
• Prior/Known Circumstances
• Claims arising out of Trade Debts of Insolvency
• Contractual Liability

There are often other exclusions in addition to these, therefore it is important that you read the policy wording.

PI Insurance policies may have Limits of Liability from $500,000 up to $100,000,000 depending on the nature of the professional services being performed.

This means that should a claim arise a policy will pay up to the Limit of Liability.

Limits of Liabilities can either be Inclusive of Costs or Exclusive of Costs.

• Inclusive of Costs means that the Limit of Liability includes any costs that are associated with the claim such as defence costs.
• Exclusive of Costs means that the Limit of Liability does not include any costs that are associated with the claim and therefore defence costs would be paid in addition to the Limit of Liability.

A Limit of Liability that is Exclusive of Costs is typically seen as preferable to a Limit of Liability that is Inclusive of Costs.

PI Insurance policies have traditionally offered reinstatements of the Limit of Liability. When there is a claim under the policy a Reinstatement of the Limit of Liability effectively tops up the policy equal to the amount of any claim. This means that should you have a claim that reduces the policies Limit of Liability
it will be reinstated so as to keep the Limit of Liability available for future claims. Reinstatements can be restricted to a certain number or be unlimited.

You should read the policy wording for the relevant insurer which is on our website and is available at the time that a quotation is provided.

You’ve just completed your final project as a freelance consultant and will soon be retiring to the beach. No more commuting, deadlines, or tedious management meetings. You’ve had a great career, been fortunate enough to make some money along the way and now after 25 years of freelancing are looking forward to living the good life.

Before you close shop, you’ll want to make sure that no-one can ruin your retirement. In particular all those people you’ve worked for over the years. You may be surprised to learn that when you retire liability for your past actions don’t cease. You can still be stung by costly claims of negligence years after services are completed.

Fortunately there is a simple and cost effective professional indemnity insurance solution that protects your business after it has ceased trading. Its called ‘Run Off Cover’.

What Is Run Off Cover ?

Run off cover is a professional indemnity policy which provides cover after you have closed your business. It provides useful protection when you no longer need to be covered for new work, but still need professional indemnity to cover possible future claims.

Why Is Run Off Cover Necessary?

Professional indemnity insurance is underwritten on a ‘claims made’ basis rather than an ‘occurance’ basis’. Under a ‘claims made’ policy coverage is provided only for claims reported to insurers during the policy period. It does not provide cover for claims made after the period of cover expires. (even where the event giving rise to the claim occured during the period of insurance).

So if for example you worked on an engineering project, retired and then one year later a claim was made against you the professional indemnity policy you held at the time would not protect you. Run off cover would. (providing the claim occured during the period of run off insurance.)

Run Off Cover – How Long?

Its difficult to suggest the period of time that run off cover ought to be taken out. Cover should be continued until you are comfortable that there is no longer any likelihood of problems with your work.

Business insurance policies typically cover the entity listed as the insured, and any subsidiary companies and those acquired or incorporated during the period of insurance.

Business insurance is a claims occurrence policy. A claims occurrence policy obligates the insurance company to pay for claims arising out of occurrences during the policy period regardless of when the claim is reported, subject to the terms and conditions of the policy. In other words, the policyholder is covered for any incident that occurs during the term of the policy regardless of when the claim arising from the incident is reported to the company.

A business insurance policy can provide the following cover:

• Material Damage Contents

  This covers contents owned by the insured or for which the insured is legally responsible. This cover does not include money and items which are removed from the office e.g. laptops, mobile phones, personal organisers. This policy section typically provides cover for Fire, Storm Damage, Water Damage, Earthquake, Malicious Damage, Impact,
  Explosion etc.

• Accidental Damage

  This covers Accidental Damage or Loss to Contents owned by the insured or for which the insured is legally responsible at insured’s premises. Cover does not include money.

• Burglary

  This provides cover in respect of physical loss or damage to property whilst within the Premises caused by a Burglary.

• Money

  This provides cover in respect of loss of Money whilst the Money is in Transit, in Residence (You or Your Authorised Employee), at the office premises in and out of a Safe.

• Fidelity

  This provides cover for Loss of Money or Negotiables due to dishonest acts of employees.

• Tax Audit

  This provides cover for the fees for an accountant to be engaged by the insured in connection with an audit by the ATO.

• Glass

  This provides cover for the cost of repairs or replacement of Glass which belongs to the insured or for which the insured is legally responsible.

• Additional Increase Cost of Working (AICOW)

  This provides cover for the additional expenditure the insured incurs to minimise the effects of a loss or damage following an insurable event e.g. cost to relocate offices as a result of a fire.

• Public/Product Liability

  This provides cover for personal injury or property damage caused to a third party arising out of the business operations of the Insured.

• Other Cover Available

  Additional cover can be purchased for general property items (e.g. laptops, mobile phones, PDAs, etc.) whilst away from the business premises,

You should read the policy wording for the relevant insurer which is on our website and is available at the time that a quotation is provided.

Management Liability insurance policies typically will cover the following:

The entity, including any subsidiaries (held or acquired during the policy period); and All past, present or future directors and officers of the insured entity.

Management Liability insurance is a claims made policy. A claims made policy means
that the policy responds to:

• Claims first made against you during the policy period; and
• Events of which you become aware during the policy period, which could give rise to a future claim provided that you notify the Insurer during the policy period of the circumstances of such events.
• Both situations described above are subject to the advice that resulted in the claim circumstance, being provided after the retroactive date.

When the policy expires, no claims can be made on the policy even though the event giving rise to the claim may have occurred during the policy period. It is therefore essential that you always notify the insurer of any events of which you become aware during the policy period, which could give rise to a future claim. Failure to notify during the current policy period may result in the insurer declining to pay the relevant claim.

Management Liability insurance protects the individuals and the company in relation to the exposures associated with managing a company. The key elements to the cover are as follows:

• Directors and Officers Liability

  This provides cover for the Directors and Officers (including where the company can reimburse the directors) for any claim alleging a Wrongful Act (negligence, breach of duty, misrepresentations) by a Director or Officer.

• Company Cover

  This provides cover for the Company where there is a claim against the entity alleging
  wrongful acts

• Employment Practices liability

  This provides cover for the Company for claims alleging an employment breach including wrongful dismissal, discrimination, harassment, deprivation of career opportunity, beach of employment contract, etc.

• Trustee Liability

  This provides cover for where the insured or one of its officers acts as trustee of the insured entity’s own staff superannuation fund.

• Crime Cover

  This provides cover for the insured for theft by its employees

You should read the policy wording for the relevant insurer which is on our website and is available at the time that a quotation is provided.

Public Liability insurance policies typically cover the entity listed as the insured,
and any subsidiary companies and those acquired or incorporated during the period
of insurance.

Public Liability insurance is a claims occurrence policy. A claims occurrence policy obligates the insurance company to pay for claims arising out of occurrences during the policy period regardless of when the claim is reported, subject to the terms and conditions of the policy. In other words, the policyholder is covered for any
incident that occurs during the term of the policy regardless of when the claim arising from the incident is reported to the company.

Public Liability Insurance provides cover for legal liability to pay compensation (including legal expenses) to third parties in the event of the Insured causing injury, death or loss of or damage to property arising out of the business operations of the Insured.

The amount of public liability cover is usually driven by either an office tenancy lease or a contract with a client. You should review your lease agreement, and any client contracts. Typically, the level of cover is either $10 million or $20 million.

You should read the policy wording for the relevant insurer which is on our website and is available at the time that a quotation is provided.