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.

Latest News

CPR joins Ausure

We would like to announce to all our Clients, Prospective Clients, Suppliers and Insurers, that Cooper Professional Risks Pty Ltd trading as CPR Insurance Services, will be leaving National Adviser Services Pty Ltd (NAS) and joining Ausure Pty Ltd as a Corporate Authorised Representative from 5 March 2018.

Fundamentally, there is no difference to you, except our Invoices will look a little different, and the Banking details will be in a different name and account number. Everything else at CPR stays the same.

There are a number of reasons we have made this decision, but the primary reason is for what we believe is best for our clients.

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Special offer to CPR Insurance clients

Employsure are providing a FREE Business Health Check to all our clients and gives you the opportunity to receive an analysis of the health and safety requirements in your workplace. Also. Employsure  will review your employment agreements as well as your wage rates helping you to avoid workplace claims.

Ordinarily this would cost you at least $1,250 but because you are a CPR Insurance client, it is free!

It involves the following review for you.

SAFECHECK

A specialist Work Health and Safety Consultant will visit your workplace and carry out:

A review of your business’ current work health and safety policies, procedures and systems to identify areas of concern or non-compliance

Following the review, you will receive a report summarising the findings and the health and safety

Status of your workplace

WAGE CHECK

A Wages Adviser will review your rates of pay and produce a Wage Check report.

The review will be conducted against the industrial instrument applicable

A report will be supplied advising if the wages are compliant and what steps to take to achieve compliance

CONTRACT REVIEW

A Document Consultant will review an employment agreement and provide recommendations.

The review will highlight compliance issues with the Fair Work Act 2009 as well as best practice

The report will make recommendations to achieve compliance and provide protection to your business.

This will remove any areas of potential dispute and risk

So what do you have to lose? Contact us on 07 3123 1137 and arrange 

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