Professional Indemnity Claims & Circumstances

How do I know when I have a claim?

Professional Indemnity is what we call a "claims made" policy which means a claim is accepted under the policy if made against the insured and reported to the insurer during the period of the policy. This means the events that have lead to the claim may not have necessarily occurred during the policy period but could have been prior to the current policy year. So long as it occurs after the "Retroactive Date" set on the policy and so long as it was not a circumstance that was already known about.

Circumstances of a possible claim must be reported

This means that a claim will usually start with a "circumstance". A circumstance will be when you were first made aware there could be a claim made against you. This is sometimes a subjective and contentious situation area and varies in interpretation from insurer to insurer. The safest thing to do is if you think you have a circumstance, then report it as soon as possible either direct with the insurer or through us as your Broker.

Examples of a circumstance are:

  • Threats made either verbally or in writing that your client blames you for a financial loss or situation
  • Customer Complaints about your service
  • Receiving notification by summons of an intention to commence legal action

While Courts will usually apply the "Reasonable Person" test if there is an allegation of failing to already report a known circumstance. It is best not to risk it and report anything you think may end up being a claim. If a claim does not eventuate, no harm done but at least the matter is locked in to that policy year.

If during the period of insurance you do notify a circumstance that may give rise to a claim then, because of the requirements of the Insurance Contracts Act that also triggers coverage under the policy. Therefore it is deemed to be a claim. Insurers rarely provide a definition of a circumstance but they do for a claim.

All you need to do is report the matter in writing to the insurer or via us as your Broker. Provide the name of the possible claimant, their allegations, and the period when the alleged matter took place. Insurers will usually then request you to complete one of their Claim Notification Forms.   Alternatively it may be easier to download and complete the details straight onto the insurers form and forward it as soon as possible to them or us as your Broker.

This is important because the details will be fresher in your mind. If the claimant leaves the matter for a few years before taking further action, you will not have difficulty trying to remember what it was all about.

Have a good claims reporting procedure

If employing staff, it would be a smart move to bring in a system or regular requests from staff either monthly or quarterly but most certainly before the expiry date of your current policy, asking them to declare whether they are aware of any possible circumstances or errors or omissions on their part unless otherwise already reported.

It is also a good move to educate your staff on the importance of reporting any such threats of an error or omission so they understand how they can avoid prejudicing their company's position if a matter was reported late. Also promise no ramifications in their position if they comply with this request. After all, mistakes do happen. It is just a matter of how they are handled from there.

Your Insurance Broker's role in the claims process

Although we advise to let your insurer know as soon as possible, unless you have sent such advice through us first, we may not always be informed by insurers that you have reported a matter. So let us know too.

We will then monitor the matter and make sure that you receive the best possible assistance or result from your insurers. It is often said that a true test of an insurer is when you come to make a claim but you need an expert on your side should something not go the right way.

We will support, negotiate and advise on your claim through out its life span and make sure you receive the right claims outcome.

So call or email us when you need our help

At CPR Insurance - We are experts that will save you!

What is a "Circumstance" and what is a "Claim"?

Why would someone want to make a claim against me?

Latest News

Robert Cooper - one of 100 faces of small business

This week it was announced as part of Small Business Week,  that Robert has been named one of the 100 faces of small business for a State Government promotion on the great value that small businesses play in the State of Queensland.

You can see Robert's entry here:

It is the third accolade for CPR Insurance Services in a month and after seven and a half years in business is a real pep up for the company.

For Robert, it is the culmination of many years experience, becoming well qualified, experiencing the highs and lows of a career and always wanting to contribute to his community. Sometimes, these things just come together and you receive recognition for your efforts.

Robert says that there is no doubt that starting your own business is a huge challenge, but with the right research and planning, the right people around you and a good set of values that you apply to the vision of the company, you have a very good chance of making it all succeed.

Robert says he is lucky. He has a strong supportive Wife, Mandy, who is also part of the business, along with efficient and hard working staff such as Julia McLauchlan and Aidan Harmer who are building up their own skills in a learning environment. 

However, the most important and most supportive people for CPR Insurance Services are our clients who have stuck by us and supported us over the past seven years. Our focus remains on providing the best possible service we can and always acting in their best interests. To all our clients, we say thank you!

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CPR Insurance wins Brokerage of the year

CPR Insurance Services picked up the award for the Best Brokerage (1-5 staff) in Australia, last Friday Night (4th May 2018) at the Insurance Business Magazine Awards held at the Westin in Sydney.

Judging came from various parts of the industry. It is a great honour to be recognised for our hard work and particular Business values we follow. A full list of winners is listed here.

Success comes from having great staff, and we thank Aidan Harmer and Julia McLauchlan as important support staff for helping us win such an award.

CPR Insurance has been in operation for more than 7 years now and is only successful because of the wonderful support from our staff, insurers and most importantly, our fantastic clients who put their faith and trust into our company to be their Risk Advisers and Brokers. 

Thank you to all.

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