Professional Indemnity FAQ

Glossary of Terms

APRA: the Australian Prudential Regulatory Authority.

Circumstance notification clause: where an insured notifies the insurer of circumstances (during the period the policy is in force) that might give rise to a claim against the insured.
Following the introduction of the ICA, the failure to include a notification provision would result in one being imposed by subsection 40(3) anyway (see also ‘deeming clause’).

‘Claims made’ policies: a type of liability insurance policy in which the trigger of coverage is not the occurrence of a loss, but the making of a claim in respect of that loss by a third party, upon the insured. This means that an insurer indemnifies the insured against claims made during a policy year, notwithstanding that the negligent act, error or omission may have
occurred before the policy came into force and the actual claim might be made after the policy expires. (see ‘Long tail’ claims).

‘Claims made and notified’ policies: a type of claims made liability insurance in which notification during the period of cover is required under a circumstance notification requirement in the operative clause so that cover under the policy only arises for claims made upon the insured and notified to the insurer during the term of the cover. (see also ‘circumstance notification’ clause).

Conditions: the rules that the parties to the contract agree to follow in relation to the operation of the contract.

Deeming clause: a clause any claim which is subsequently made arising out of those circumstances is deemed to have been made at the time of the notification or during the policy period.

IBNR: the acronym for the insurer’s estimate of its liability for ‘incurred but not reported’ claims. IBNR’s are theoretically better controlled under the professional indemnity claims made and notified policy format that under the occurrence–based insurance policy.

Liability insurance: a policy indemnifying an insured for civil liability exposures from third party claims of loss. Exposures are often ‘long tail’ whilst liability insurance policies can be in a ‘claims made’/‘claims made and notified’ format (eg. professional indemnity, product liability, Directors and Officers insurance) or an occurrence-based format (eg. public liability).

Long tail: the description given to the nature of the risk in respect of an unknown number of claims which might be made many years after the actual occurrence that gives rise to the claim.

Occurrence-based insurance: common to certain types of liability insurance (eg. public liability) and property insurance policies where the trigger for liability is an insured event or occurrence that occurs during the period of the policy irrespective of when a claim is ultimately made.

Operative Clause: Sets out in very broad terms the cover provided by the policy. This cover is then narrowed subsequently be the exclusions (also known as an ‘insuring clause’).

Professional indemnity insurance: a liability insurance policy that indemnifies the insured for civil liability cover for members of a profession arising from the conduct of insured’s professional business practice. (usually written as a ‘claims made and notified’ policy).

Retroactive date: refers to the earliest date on which an event could occur that would attach coverage of an insurance policy before a claim will be covered under the policy 

Latest News

Three Years running - Insurance Brokerage of the Year 1 to 5 staff

Mandy and Robert Cooper were extremely honoured and astounded to once again win, Insurance Brokerage of the Year for 2020 from Insurance Business Australia magazine. This is the third year running.

While this year has not been the easiest of years for the business with Covid 19, the Recession, the hard market and issues at Lloyds of London, we are literally all in this together as an Insurance Industry.

CPR Insurance Services continues to make our clients the number one focus of our business while managing our relationships with Insurers, who we need more than ever in this market climate.

CPR Insurance Services are a highly ethical Brokerage with a reputation as a trusted advisor who always acts in the Client's best interests. Their experience, knowledge and expertise is amongst the highest in the industry.

CPR Insurance Services is now ten years old as a business and is proud of being an Authorised Representative of Ausure and their partnership with Steadfast, giving CPR the strength and backing to match it with any Broking firm in the Insurance Industry, but remain focussed on supporting the Small to Medium business segment.

Memberships of the National Insurance Brokers Association, Australia and New Zealand Institute of Insurance and Finance, Australian Insurance Law Association, Australian Professional Indemnity Group and the Australian Institute of Company Directors, ensures CPR Insurance Services maintains the high standard of knowledge and expertise required to be one of the best Brokerages in Australia.

CPR Insurance Services also plays a strong role in their local community supporting other Sporting Clubs and Community organisations. They also support and promote local businesses with their operation of the Kedron Brook Business Group who meet regularly and has 174 members.

We are truly honoured to receive this National award once again for the third year as a recognition of CPR Insurance Services contribution.

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Finalist for QLD Broker of the Year

Robert Cooper was honoured to be nominated as a finalist for Queensland Insurance Broker of the year for 2020, as part of the National Insurance Brokers Association. Unfortunately he missed out on the ultimate award but is a reflection of the high standard that the industry now has for such awards.

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