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| Read the following information and then signup using the registration form at the bottom of this page. |
Introduction
Welcome to the Liability Insurance Facility for Members of PMINZ. This facility is only available to current members of PMINZ.
PMINZ and Aon New Zealand Ltd are pleased to invite you to obtain your liability insurance requirements via this on line liability insurance facility developed exclusively for members of PMINZ with the assistance of PMINZ. The facility provides the following insurance solutions at a competitive cost:
- Professional Indemnity – Civil Liability
- General Public Liability
- Statutory Liability
- Directors and Officers Liability/Company Reimbursement (optional)
- Employers Liability/Employment Disputes Liability (optional)
Aon New Zealand Ltd is the insurance broker and consultant to this facility.
Lumley General Insurance (NZ) Ltd is the insurer.
TechCertain Group Limited provides the on line technical support.
PMINZ is not an agent of Aon New Zealand Limited or Lumley General Insurance (NZ) Limited or TechCertain Group Limited in relation to the development or operation of this insurance facility.
PMINZ is not a party to any contract of insurance broking services provided by Aon New Zealand Limited to PMINZ members under this insurance facility.
PMINZ is not a party to any contract of insurance between any PMINZ member and Lumley General Insurance (NZ) Limited under this insurance facility.
It is the responsibility of Aon New Zealand Limited to administer this insurance facility in conjunction with TechCertain Group Limited and Lumley General Insurance (NZ) Limited.
It is the responsibility of Aon New Zealand Limited to act as the insurance broker to each PMINZ member who accepts the insurance under this facility. All insurance services offered are independent of PMINZ who remain an interested party in so far as the interests of their members are served by Aon New Zealand Limited. In this regard, PMINZ is entitled to receive such information that does not breach the privacy of members from Aon New Zealand Limited as required and for the purposes of providing relevant services to members.
PMINZ does not accept any liability whatsoever arising directly or indirectly from the provision of insurance services via this website.
Insurer Strength
Lumley General Insurance (NZ) Limited has been assigned a claims paying ability rating of A- (strong) on 7 November 2010 by Standard & Poor’s (Australia) Pty Ltd.
Insurances
The insurances included under this facility are:
- Professional Indemnity
- General Public Liability
- Statutory Liability
- Directors and Officers Liability/Company Reimbursement (optional)
- Employers Liability/Employment Disputes Liability (optional)
The professional indemnity insurance covers “Civil Liability”. This broadest form of professional indemnity covers liability for claims against you for financial loss arising from the professional services you provide. These can arise under contract as well as a breach of the duty of care in the tort of negligence.
Cover includes breach of the Fair Trading Act 1986 (sections 9 - 14), Defamation, Breach of intellectual property rights, joint venture liability (own), dishonesty of employees, vicarious liability for consultants and sub-contractors, breach of fiduciary duty, loss of documents, late notifications subject to continuous insurance with Lumley, automatic reinstatement of the limit of indemnity, severability of insurance for multiple insureds, non disclosure or misrepresentation of material facts and costs of representation at disciplinary proceedings. Unlike most professional indemnity insurance policies issued to PM’s, this exclusive insurance to PMINZ members is inclusive of cover for cost overruns, time delays and a broader weathertightness cover than normally available (please refer to the policy document for further details).
The minimum level of cover has been set at $1,000,000 any one claim and $2,000,000 to meet the aggregate of all claims subject to an excess of $2,000 applicable to the sum of defence costs and settlements. Defence costs are covered in addition to the limit of indemnity.
$1,000,000 is a realistic minimum level of cover. Although some client contracts will specify a lower insurance limit e.g. $500,000, this cannot be interpreted as a limitation of liability. You can still be sued for an amount beyond the specified insurance limit. Even if a limitation of liability is available, a duty of care exists to parties beyond the contract who will not be constrained by any contractual limitations.
The professional indemnity insurance is complemented by general public liability insurance at $2,000,000 any one occurrence with defence costs payable in addition, covering liability to pay compensation for personal injury or property damage. This insurance is free of any excess application.
The above insurances are accompanied by statutory liability insurance at $500,000 to meet the aggregate of all claims including defence costs covering liability to pay fines and penalties under most Acts of parliament including the Resource Management Act and reparation costs under the Health and Safety in Employment Act. This insurance is free of any excess application.
An option is available to extend the insurance programme to include directors’ and officers’ liability insurance which essentially responds to “managerial” errors and omissions as opposed to “professional” errors and omissions. Cover is offered for a limit of indemnity of $500,000 any one claim and the aggregate inclusive of defence costs based on a nil excess for claims that are not indemnified by the company where an excess of $1,000 would otherwise apply.
If you operate a business which employs staff, the insurance can be further extended to include employers liability and employment disputes liability to provide essential cover for you, as the employer, for liability arising out of:
a) Personal Injury to employee(s) in their course of employment. Some injuries may fall outside the provisions of the Injury Prevention, Rehabilitation, and Compensation Act 2001 and you may be liable to pay damages to the employee, or even if the Injury is one for which compensation is provided for under the Act, you may still be liable for an award of exemplary & punitive damages.
AND
b) Breaches, or costs in defending alleged breaches, of the Employment Relations Act 2000. If an employee raises a personal grievance then you could be liable, e.g. for constructive dismissal or sexual harassment, and the legal costs associated with defending any such claim.
Under this extension cover is offered under the following two policies:
1) Employers Liability:
Limit of Indemnity: $500,000 any one claim and in the aggregate inclusive of costs
Excess: Nil
2) Employment Disputes Liability:
Limit of Indemnity: $250,000 any one claim and in the aggregate inclusive of costs
Excess: $2,500 each and every claim inclusive of costs
With the exception of the general public liability insurance, these insurances are on a “claims made” format. This format requires a claim that arises out of professional services provided subsequent to the retroactive date, to be discovered and notified to insurers during the period of insurance. The retroactive date will be equivalent to the commencement date of the insurance. If the member has been previously and continuously insured and this insurance is replacing that insurance, the same retroactive date will apply.
Premium Guide
For members falling within the automatic quotation and acceptance parameters of the facility where their proposal does not have to be referred to insurers for underwriting.
The annual premium is calculated on a sliding scale approach based on risk factors determined by the industry sectors members operate in and their activities.
An IT PM earning $150,000 can expect to pay an annual premium of $690 + GST for the liability package based on PI cover of $1,000,000.
A Construction PM earning $150,000 can expect to pay an annual premium of $1,683 + GST for the liability package based on PI cover of $1,000,000.
The scale also differentiates between the categories of membership so that advanced members receive preferential rating.
The additional annual premium for the optional directors’ & officers’ liability insurance is $450 + GST based on a company with assets of no more than $250,000 and revenues up to $500,000.
The additional annual premium for the optional Employers Liability and Employment Disputes Liability insurance is $350 + GST to cover up to 4 employees and $50 + GST per employee thereafter.
Application
- You can now register by entering the name and email address in below (at the bottom of this page).
- A proposal will become available for completion online.
- Upon your submission of the proposal, the TechCertain system will immediately generate a quotation if the proposal parameters are met.
- a) If the proposal parameters are NOT met, the TechCertain system will inform you of the referral of the proposal to Lumley.
b) Aon and Lumley will receive notification from TechCertain and call up your proposal. Aon will negotiate terms with Lumley.
c) The quotation will then be entered on the TechCertain system and you will be notified by email from TechCertain to access the quotation.
- If accepted, a certificate of insurance with policies will be issued.
- Aon will raise the premium invoice and dispatch to you. Payment is required immediately upon your receipt. A premium funding option will be included enabling payment over ten months.
- TechCertain will email you when the insurance is due for renewal with link/password to proposal to complete on line for renewal repeating the above process.
Do you wish to complete the proposal now? Click here to jump to the registration form at the bottom of the page
Claims Process
What is a claim?
The common thread of what must be notified is “a set of circumstances that you become aware of that leads you to believe that the possibility exists that a claim may be made against you”.
The above covers a wide spectrum of situations from the extreme of a verbal intimation of an error or omission to the more obvious formal letter of demand or a writ or summons served on you.
The question to ask oneself is – “given the circumstance, am I positive that no claim will be made against me?” If the answer is “no, I am not positive” then you must notify the insurer via Aon.
As some policies do differ on what constitutes a circumstance to be notified, please refer to Aon for guidance.
General Procedure
A notification is made to Aon by logging into TechCertain using your TechCertain proposal login. If you use the TechCertain system, we will get an email and can then advise you on your next step.
It is important that any communication between you and the claimant be approved by insurers to avoid a possible prejudicing of your ability to obtain indemnity under the policy.
Insurers may require the appointment of legal counsel from their legal panel to report on any indemnity issues and otherwise assist you in the defence of the claim. Such assistance will be on a “reservation of rights” basis until indemnity under the policy can be determined. Aon will consult with you regarding the appointment of counsel to ensure that you are comfortable with them representing your interests in defence of the claim.
KEY CONDITIONS
Do not admit liability.
Do not enter into correspondence or discussion with the claimant without insurers consent and input.
Do not incur defence costs without the prior written approval of insurers.
Do not offer to settle the claim without the prior written approval of insurers.
Do co-operate with insurers in the defence of a claim.
Enquiries in relation to this facility or other insurance requirements may be directed to:
Lee Gornall
Aon New Zealand Ltd
PO Box 1184
Shortland Street
Auckland 1140
DDI: 09 362 9061
Email: lee.gornall@aon.co.nz
Mark Koschak
DDI: 09 362 9091
Mobile: 021 592 684
Email: mark.koschak@aon.co.nz
You agree that Aon’s Terms of Business apply to the provision of services by us. These are located at www.aon.co.nz/terms.
To release the proposal for your completion please enter your details below and click Register.
The Financial Adviser Act 2008 which regulates insurance advisors became effective 1 July 2011. Any person providing advice in relation to the purchase or suitability of an insurance product, must be a registered financial adviser and provide a personal disclosure statement.
All Aon broking staff have received training on this, and have been registered. Our primary responsibilities are to:
- be a registered financial adviser
- act in the best interests of our clients
- exercise reasonable care, diligence and skill at all times
- be competent
- provide disclosure statements from 1 July 2011.
The format and content of a disclosure statement is prescribed in the Act. A copy of the relevant disclosure statement will be provided with the invoice for the premium due, or can be requested at any time.
NOTE: if you enter a company name below the proposal will be issued under the name of the company. If no company name is entered, the proposal will be issued under your name.
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