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

Illegal or unsuitable cladding now a big issue

Why we have laws, regulations and Australian standards? Because some people just do the wrong thing all for the sake of making money. The cladding issue is the subject of 4 Corners program on the ABC.

We are already seeing Insurance policies now placing exclusion endorsements into their policies excluding and claims relating to illegal cladding. We are seeing Governments demanding Audits of all existing buildings above a certain height. There are accusations of Builders taking other short cuts such as on Wiring, Pipes and sprinkler systems. 

The question is, who is to blame? Who will take responsibility?

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Small business in NSW

Right after the NSW Government have reimposed Fire Service Levies, they have at least made an effort for small business. The government has announced it will abolish stamp duty on a number of policies taken out by a small business. This is an important change.

What is a small business? In order to gain the exemptions, the business must be a small business for Capital Gains Tax Purposes for the income year in which the insurance is effected or renewed. A small business for CGT purposes is: “an individual, partnership, company or trust that is carrying on a business, and has an aggregated turnover of less than $2 million.”

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