Professional Indemnity FAQ

What is Loss of Documents

Loss of Documents - What is it?

Examples of Claims for Loss of Documents

Many people ask me, what would a claim for loss or damage to documents that you see usually as an extension to a Professional Indemnity policy?

These must be documents owned by a Third Party that are in the insured’s physical custody and control. A claim for a loss must arise where a third party has suffered some financial loss and it is not intended to cover an insured’s own loss.

An example can be an Architect who releases to a builder, his sole copyright/ownership in his architectural drawings of a multi-storey office block as per an agreed contractual arrangement. The drawings may stay with the insured until completion of the project.

But what happens if the Insured suffered a fire at the premises and did not keep a back up copy off site? There could be a long delay in the construction of the building. The builder could argue that he had suffered a direct financial loss arising from the destruction of his documents (the architectural drawings). He may seek compensation from the insured for the subsequent consequential loss caused by the interruption to construction of the project.

A similar example can be an Accountant who holds on to all the original receipts of a client while calculating his tax owing for the previous financial year. Perhaps he has a Storm causing water damage coming through the roof destroying all the paperwork. The Third Party may need to go to considerable expense in obtaining replacement copies from his own suppliers etc. He may seek compensation from the Insured for these additional expenses caused by the loss of the documents held in the Accountant’s care, custody and control.

Not a common claim but worth having the extension as it is usually free.

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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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It is the fourth time in six years Robert has received this honour.

It is a great recognition for CPR Insurance Services who strive to provide the best possible standard of customer care and service to assist obtaining the best possible cover at the best possible price to meet the needs of for our clients.

Such awards are not possible without the outstanding support provided in the office by Julia, Aidan and Mandy, along with the fantastic support our clients continue to show to us. Thank you to all.

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