Professional Indemnity FAQ

Bodily Injury Exclusions - Watch out

Bodily Injury/Property Damage Exclusions

There are probably three main categories of Professional Indemnity (four if we include Medical Malpractice) which are Financial Lines, Construction Related Risks and Miscellaneous Consultants. It does not matter if the Financial lines has a Bodily Injury Exclusion along with most consultants, however Construction Related Risks such as Engineers, Architects, Project Managers must have this exclusion removed as simply, most of their types of claims may well lead to Bodily Injury and/or Property Damage. Insurers have been known to leave these exclusions in testing the skill of the poor unsuspecting Brokers. Make sure any profession where a mistake could lead to bodily injury or property damage does not have this exclusion.

Latest News

D&O premium pool ‘must treble’ to return to profitability

A new report – called "Show Me The Money!" by insurer XL Catlin and law firm Wotton + Kearney – is the second in a series of three white papers on securities class actions and their impact on the Directors & Officers Liability (D&O) market. The main conclusion is that Directors’ and officers’ (D&O) insurance premiums are under-priced significantly and need to rise strongly to restore profitability. The main risk areas are those exposed to securities class actions, 

It says Directors & Officer's Side A, Side B and Side C cover has been chronically underpriced since at least 2011, while the frequency of class actions is increasing as more plaintiff lawyers and litigation funders enter the space.

The analysis suggests last year’s overall premium pool of about $210 million would need to increase by at least three times to establish a profitable market, if it is assumed all other factors stay unchanged.

“Recent market developments would indicate most D&O insurers are now endeavouring to restore some semblance of profitability to their portfolios after years of market losses,” the report says.

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75% of Cyclone Debbie claims settled

In the 6 months since Cyclone Debbie devastated Queensland and parts of northern New South Wales:

• more than 31,000 homes and business have been repaired or received settlements from their insurance company

• more than 20,000 families have had possessions replaced

• more than 4,500 motor vehicles have been repaired or new vehicles provided

• hundreds of local builders and trades have been working on properties to repair the damage and destruction caused by the cyclone

• over $5 million has been paid EACH DAY to assist local communities, residents and businesses.

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