Audit Insurance Product Disclosure Statement
SMART Business Solutions has a practice wide audit insurance policy that clients can 'opt'd in" to be covered by the policy.
Insurer’s Notice to the Client: (These notices are subject to and do not affect the provisions of this Policy)
- Non-Standard Policy
The terms and conditions of this Tax Audits & Investigations Professional Expenses Insurance Policy are distinct and exclusive from the terms and conditions of all other business insurances arranged by us. It may contain provisions which are unusual or different from any other policies and you should read the entire Policy carefully prior to entering into any contract.
- Legal Advice
Your clients can e-mail the Advice Provider via firstname.lastname@example.org for legal advice on any problem related to their business, trade or profession. The advice available is limited to the law and practice of Australia.
This insurance is only available to business organisations whose Normal Business Activities are conducted within the Territorial Limits.
- Claims Made and Notified
This is a “claims made and notified” insurance policy, which means that it provides cover only in relation to a claim against you that is:
- first made against you during the Period of Insurance; and
- notified by you to the Claims Administrator during the Period of Insurance;
provided that you were not aware before the commencement of the Period of Insurance of any facts that alerted you or would have alerted a reasonable person in your position that the claim might arise (see GENERAL CONDITION 2 and EXCLUSION 3).
- This Policy also responds to “claims circumstances” notified by you to the Claims Administrator during the Period of Insurance pursuant to section 40(3) of the Insurance Contracts Act 1984 (Cwlth), which provides:
Where the Client gave notice in writing to the insurer of facts that might give rise to a claim against the Client as soon as was reasonably practicable after the Client became aware of those facts but before the insurance cover provided by the contract expired, the insurer is not relieved of liability under the contract in respect of the claim, when made, by reason only that it was made after the expiration of the period of insurance cover provided by the contract.
- This Policy does not provide cover for any professional costs or expenses that you incur before the Claims Administrator accepts the claim.
- Please note that, in addition to GENERAL CONDITION 2, special conditions dealing with the reporting of claims apply to claims under the Tax Audit and Investigation cover – see ‘WHAT IS COVERED’.
- Your Duty of Disclosure
- Before you enter into an insurance contract, you have a duty to tell us anything that you know, or could reasonably be expected to know, may affect our decision to insure you and on what terms.
- You have this duty until we agree to insure you. You have the same duty before you renew, extend, vary or reinstate an insurance contract.
- You do not need to tell us anything that:
- Reduces the risk we insure you for: or
- is common knowledge; or
- we know or should know as an insurer; or
- as to which compliance with your duty is waived by the insurer.
- If You Do Not Tell Us Something
- If you do not tell us anything you are required to, we may cancel your contract or reduce the amount we will pay you if you make a claim, or both.
- If your failure to tell us is fraudulent, we may refuse to pay a claim and treat the contract as if it never existed.
- Material Alterations of Risk
- You shall throughout the Period of Insurance disclose to us as soon as reasonably practicable any material change in any fact, activity or circumstance as described in the Proposal.
- The Insurer is entitled to refuse to cover the additional exposure or to charge a reasonable additional premium or, if the nature of the change in circumstances entails a substantially different risk, whether in type or degree, from that previously envisaged, to cancel the contract or reduce its liability.
- Waived Recourse Rights
Please note that the Policy excludes any claim or claims where and to the extent Insurers have or would have rights of recourse in respect of such claim but you have granted without the Insurers prior consent a waiver of such recourse rights to others whether by express term or by reason of an assumption of liability under contract.
- Enquiries, Complaints or Disputes
This Certificate is Insurance Council of Australia’s General Insurance Code of Practice compliant, apart from any claims adjusted outside of Australia. Underwriters at Lloyd’s proudly support the General Insurance Code of Practice. The purpose of the Code is to raise standards of practice and service in the general insurance industry. Any enquiry or complaint relating to this Insurance should be referred to London Australia Underwriting shown above in the first instance. If this does not resolve the matter or you are not satisfied with the way a complaint has been dealt with, you should write to:
Lloyd’s Underwriters’ General Representative in Australia
Suite 2, Level 21
123 Pitt Street
SYDNEY NSW 2000
Tel: 02 9223 1433 Fax: 02 9223 1466
who will refer your dispute to Policyholder & Market Assistance at Lloyd’s.
Complaints that cannot be resolved by Policyholder & Market Assistance may be referred to the Financial Ombudsman Service (UK). Further details will be provided at the appropriate stage of the complaints process.
- Service of Suit
The Insurer agrees that:
In the event of a dispute arising under this policy, the Insurer will at your request submit to the jurisdiction of any competent court in the Commonwealth of Australia. Such dispute shall be determined in accordance with the law and practice applicable in such court.
Any summons notice or process to be served upon the Insurer may be served upon:
Lloyd’s Underwriters’ General Representative Australia
Level 21 Angel Place
123 Pitt Street
SYDNEY NSW 2000
who has authority to accept service and to enter an appearance on the Insurer’s behalf, and who is directed at your request to give a written undertaking to you that he will enter an appearance on the Insurer’s behalf.
If a suit is instituted against any one of the Lloyd’s Underwriters, all Underwriters hereon will abide by the final decision of such court or any competent Appellate Court.
Lloyd’s and its agents are bound by the obligations of the Privacy Act 1998 as amended by the Privacy Amendment (Private Sector) Act 2000 (the Act). This sets out basic standards relating to the collection, use, disclosure and handling of personal information.
“Personal Information” is essentially information or an opinion about a living individual whose identity is apparent or can reasonably be ascertained from the information or opinion.
Information will be obtained from individuals directly where possible. Sometimes it may be collected indirectly (e.g. from your representatives).
Only information necessary for the arrangement and administration of Lloyd’s business by Lloyd’s, its agents and their representatives will be collected. This includes information necessary to accept risk, to assess a claim, to determine competitive and appropriate premiums, etc.
Lloyd’s and its agents disclose personal information to third parties who they believe are necessary to assist them in doing the above. These parties will only use the personal information for the purposes we provided it to them for (or if required by law).
When you give Lloyd’s and its agents personal information about other individuals, we rely on you to have made or to make them aware that you will or may provide their personal information to us, the types of third parties we may provide it to, ther relevant purposes we and the third parties we disclose it to will use it for, and how they can access it. If it is sensitive information we rely on you to have obtained their consent on these matters. If you have not done or will not do either of these things, you must tell us before you provide the relevant information.
You are entitled to access your information if you wish and request correction if required.
An individual who believes their privacy may have been prejudiced has a right to make a complaint about the matter. In the first instance, your complaint should be addressed to London Australia Underwriting. This may be done either verbally or in writing to The Compliance Officer, London Australia Underwriting Pty Ltd, Level 9, 140 Arthur Street, North Sydney NSW 2060.
If you are dissatisfied with the response, you may refer the matter to Lloyd’s Australia Ltd, which has the appropriate authority to investigate and address matters of this nature. Lloyd’s Australia Ltd can be contacted at:
21 Angel Place
123 Pitt Street
Sydney NSW 2000
Phone 02 9223 1433 Fax 02 9223 1466.
Lloyd’s Australia Ltd will respond in writing within 15 working days, and if you remain dissatisfied with their response you will be provided at that time with the details of any other avenues for resolution that may be available to you.
- Terrorism Insurance Act 2003 Notice
The Insurer has treated this Insurance (or part of it) as an Insurance to which the Terrorism Insurance Act 2003 (TIA) applies. TIA and the supporting regulations made under the Act deem cover into certain policies and provided that the Terrorism exclusion to which this Insurance is subject shall not apply to any “eligible terrorism loss” as defined in TIA.
Any coverage established by TIA is only in respect of any “eligible terrorism loss” resulting from a “terrorist act” which is a “declared terrorist incident” as defined in TIA. The Terrorism exclusion to which this Insurance is subject applies in full force and effect to any other loss and any act or event that is not a “declared terrorist incident”.
All other terms, conditions, Client coverage and exclusions of this Insurance including applicable limits and deductibles remain unchanged.
If any or all of the Insurers have reinsured this insurance with the Australian Reinsurance Pool Corporation, then any such Insurers will not be liable for any amounts for which they are not responsible under the terms of TIA due to the application of a “reduction percentage” as defined in TIA which results in a cap on the Insurer’s liability for payment for “eligible terrorism losses”
TAX AUDITS & INVESTIGATIONS PROFESSIONAL
EXPENSES INSURANCE POLICY
Effected through London Australia Underwriting Pty Ltd (hereinafter called the Coverholder)
THIS IS TO CERTIFY that in accordance with the authorisation granted under Contract No. B0621P33093415 to the undersigned by certain Underwriters at Lloyds, whose definitive numbers and the proportions underwritten by them, which will be supplied on application, can be ascertained by reference to the said Contract, and in consideration of the premium specified herein, the said Underwriters are hereby bound, severally and not jointly, each for his own part and not for one another, their Executors and Administrators, to insure in accordance with the terms and conditions contained herein or endorsed hereon.
DEFINITIONS (words with special meaning)
In this Policy, unless the context otherwise requires, the following words and expressions shall bear the meaning set out below:
- Advice Provider
means the person or company specified as “Advice Provider” in the Schedule or appointed subsequently by the Insurer, who provides the legal advice service under this Policy on the Insurer’s behalf.
- Annual Aggregate Limit
means the amount specified as “Annual Aggregate Limit” in the Schedule being the maximum the
Insurer will pay for all Claims notified under this Policy during the Period of Insurance.
means the Australian Taxation Office or appropriate government authority or agency authorised to conduct the relevant activity.
- ATO Investigation
means an exercise by the ATO of the powers granted to it by means of the Taxation Administration Act
1953 to investigate the Client’s returns of income or profit from a trade, profession or business under
Income Tax Legislation.
means an enquiry, investigation or audit conducted by the ATO or State or Territory Authority of a kind described in the Sections of Cover under “WHAT IS COVERED” that:
- is first begun against the Client during the Period of Insurance and notified to the Claims Administrator before the end of the Period of Insurance; or
- first comes to the knowledge of the Client during the Period of Insurance and is first notified to the Claims Administrator before the end of the Period of Insurance;
- Claims Administrator
means the company specified as “Claims Administrator” in the Schedule or appointed subsequently by the Insurer, which administers the Claims under this Policy on the Insurer’s behalf and to whom notification of a Claim must be made.
means the client(s) of the Policyholder whose registered office or principal trading address is within the Territorial Limits and who have engaged the Policyholder’s accountancy services.
- Client’s Costs
means the professional fees and disbursements payable by the Client to the Policyholder in respect of the Claim, which have been incurred with the prior written consent of the Claims Administrator and whose reasonable amount is determined by agreement of the Claims Administrator, but excludes any such fees and disbursements recovered by the Client.
- Court or Tribunal
means a court, tribunal or other statutory body of competent jurisdiction within the Territorial Limits.
means London Australia Underwriting Pty Ltd, which is the Insurer’s agent for the purposes of this
denotes the legislation being referred to is a Commonwealth of Australia Consolidated Act.
means a director or other board member of the Client where the Client is a company.
means the amount indicated in the Schedule to this Policy which the Policyholder must bear each and every Claim before the Insurer is obliged to make any payment of indemnity.
- Fringe Benefits Audit
means an audit or investigation by the ATO regarding the amount of tax payable by the Client under the Fringe Benefits Tax Assessment Act 1986 in respect of fringe benefits.
- GST Audit
means an audit or investigation by the ATO exercising its powers under the A New Tax System (Goods and Services Tax) Act 1999 regarding the amount of GST payable by the Client.
- Income Tax Legislation
means either or both of the Income Tax Assessment Act 1936 (Cwlth) and the Income Tax Assessment
Act 1997 (Cwlth).
means Certain Underwriters at Lloyd’s specified as “Insurer” in the Schedule.
- Limit of Indemnity
means the amount specified as “Limit of Indemnity” in the Schedule being the maximum sum the Insurer will pay in connection with the one event or series of events attributable to a single source or cause or to a single set of circumstances, from which the Excess is deducted, and is subject always to the Annual Aggregate Limit.
- Normal Business Activities
means the Client’s normal business activities as declared to the Policyholder.
means where the Client is a partnership, any of the partners within that partnership.
- Period of Insurance
means the period specified as “Period of Insurance” in the Schedule.
means the contract of insurance between the Insurer and Policyholder as set out in this document and the Schedule.
means the accountant or firm of accountants regulated by their professional body/association who have declared clients to the Insurer for coverage under this Policy and who will act on behalf of the Client in respect of the resolution of a Claim.
means the Schedule to this Policy.
- State or Territory Authority
means a relevant State or Territory department, body, agency or Office of State Revenue exercising relevant Commonwealth, State or Territory legislation in bringing a Claim against the Client.
- Territorial Limits
means the Commonwealth of Australia and its external territories and an Australian State or Territory.
Reference to any statute or statutory provision and orders or regulations there under shall include a reference to that statute, provision, order or regulation as amended, re-enacted or replaced from time to time.
Unless the context otherwise requires reference to the singular includes the plural and the plural includes the singular.
Headings are for convenience only and do not affect the interpretation or form part of this policy.
WHAT IS COVERED
The Insurer provides indemnity under the following Sections of Cover subject to the terms of this Policy
and up to but not exceeding the Limit of Indemnity and the Annual Aggregate Limit:
Tax Audits and Investigations
- The Client’s Costs of a Claim arising directly from a GST Audit with the ATO where the ATO is seeking additional amounts of GST. For the purpose of this clause, the Claim is first made against the Client on the earliest of the following:
- the date on which the ATO requests a meeting with the Client or enters the Client’s
premises or expresses dissatisfaction with any of the Client’s GST returns in writing;
- date on which the Client or his or her adviser first became aware, or could reasonably have become aware, that a GST Audit was likely to arise with the ATO; or
- the date on which the Client is served with a notice of assessment or amended notice of assessment relating to the additional amounts of GST.
- The Client’s Costs of a Claim arising directly from a Fringe Benefits Audit. For the purpose of this clause, the Claim is first made against the Client on the earliest of:
- the date on which the ATO expresses dissatisfaction with the amounts of FBT (as defined in the Fringe Benefits Tax Assessment Act 1986) paid by the Client or his or her returns relating to FBT; or
- the date on which the ATO starts an investigation into the accuracy of FBT returns or information or into the Client’s liability to pay additional tax because of alleged inaccuracies in such returns or information.
- The Client’s Costs arising directly from an ATO Investigation in respect of a Claim being a notification from the ATO that it is taking action, carrying out an audit or an investigation, or making an enquiry under the provisions of Income Tax Legislation.
- The Client’s Costs arising directly from a Claim being an audit or investigation undertaken by a State or Territory Authority in relation to:
- Payroll tax;
- Land tax; or
- Stamp duty.
Superannuation Fund Investigations
- The Client’s Costs of a Claim arising directly from an audit of the Client’s Regulated Superannuation Fund by the Australian Prudential Regulation Authority or the Federal Commissioner of Taxation.
Workers Compensation Audits
- The Client’s Costs arising directly from a Claim being an audit of a Workers Compensation return undertaken by a relevant authorised body.
- In addition to the General Conditions, the Client must contact the Policyholder as soon as possible after the Claim is first made and comply with the advice given by the Policyholder;
- The Client must have maintained and must continue to maintain accurate, truthful and up to date records and make returns in due time in accordance with statute and accounting conventions acceptable to the ATO or State or Territory Authority where applicable and have made all returns and payments except those which are disputed and provide all information to relevant authorities in due time;
- The Client and the Policyholder must provide information to the ATO or State or Territory Authority in due time and must comply with any statutory notice requesting information which is not the subject of an appeal;
- The Policyholder must immediately notify the Claims Administrator in writing of any invitation by the ATO or State or Territory Authority to make an offer in settlement; and
- The Policyholder must provide copies of relevant correspondence between the ATO or State or Territory Authority and the Policyholder and the Client (including the notice of investigation) together with copies of the accounts, tax computations and returns giving rise to the investigation.
What is Not Covered
The following exclusions apply in respect of this Policy:
- Tax Disputes and Investigations
- Any costs incurred in dealing with routine matters and reviews which do not fall within a Claim by the ATO or a State or Territory Authority in respect of a GST Audit, Fringe Benefits Audit, ATO Investigation or investigation into Payroll Tax, Land Tax or Stamp Duty, or a Superannuation Fund.
- Any costs or legal fees incurred in respect of a court action or prosecution arising out of a
- In respect of an ATO Investigation only:
- costs arising after the issue of a notice under Income Tax Legislation notifying the
Client that the investigation has been completed; and/or
- costs incurred in respect of an amendment under Income Tax Legislation; and/or
- costs incurred otherwise than wholly in connection with an ATO Investigation into the
Client’s business profits. Where appropriate, Policyholder’s fees will be apportioned.
- Any Claim where:
- deliberate mis-statements have been made in respect of accounts, returns or any other submissions made to the relevant authorities with intent to deceive;
- the Client has failed to notify his or her business status to the relevant authorities within a statutory period;
- there has been a failure to maintain or submit accurate, truthful and up-to-date records and returns or a failure to observe statutory time limits or requirements;
- a false representation has been made either knowingly or without belief in its truth and this has resulted in a mis-statement of amounts payable, expenses claimed, income or profits chargeable or losses allowable for tax or contributions purposes or of expenses payments made.
- Any Claim arising from or relating to:
- an investigation or enquiry by the Investigations and Prosecutions Division of the ATO
or following the transfer of an enquiry to that Division;
- avoidance schemes relating to tax or superannuation contributions under the
Superannuation Industry (Supervision) Act 1993 (Cwlth); and/or
- GST refunds in countries outside Australia or Import GST.
- Excess and Various Liabilities
The Insurer will not pay for:
- the Excess;
- compensation, damages, interest, penalties or taxes which the Client or his or her Partners or
Directors are ordered or agree to pay.
- Excluded Claims
- Any Claim:
- notified to the Claims Administrator after the Period of Insurance expires;
- where the Client or Policyholder’s delay during the Period of Insurance in notifying the Claims Administrator has prejudiced the Insurer’s position;
- where, before the commencement of the Period of Insurance, the Client or Policyholder was aware, or should have been aware, that a Claim was likely to be made;
- where, before the commencement of the Period of Insurance, the Client or
Policyholder was aware of facts or circumstances that might give rise to a Claim;
- more specifically insured or any amount that the Client cannot recover from a more specific insurance because the insurer refuses the claim for indemnity under the other insurance;
- where no Court or Tribunal will or would entertain a hearing on the substantive merits of the dispute or which is otherwise not within the jurisdiction of a Court or Tribunal.
- Any claim for indemnity under the Policy which is false, fraudulent or exaggerated.
- Any Claim concerning or arising from:
- a dispute between the Policyholder, Client, Coverholder, Claims Administrator,
Advice Provider and/or Insurer about this Policy;
- an application for judicial review.
- Any civil claim against the Client arising from:
- the death or injury to any person including (without limitation) any sickness, disease or any naturally occurring condition or degenerative process;
- the loss destruction or damage to property owned or occupied by or under the control of a third party.
- Excluded Costs
- All costs associated with an appeal.
- All costs that the Client pays or agrees to pay before the Claims Administrator has accepted the Client’s claim for indemnity in writing.
- All costs greater than agreed by the Claims Administrator.
- All costs arising from the Client’s or Policyholder’s unreasonable behaviour or failing.
- All costs arising from breach of the Client’s or Policyholder’s duties under this Policy or acts of the Client or the Policyholder that cause prejudice to the Insurer.
- All costs arising from the Client acting against or differently from the advice of the
- All costs incurred in unnecessary correspondence.
- All costs incurred by any party other than the Policyholder.
- Claims not arising from Normal Business Activities
This Policy does not provide cover in relation to Claims not arising out of the Normal Business
- Professional Negligence Claims
This Policy does not provide cover in relation to Claims against the Client or any Partner or Director for alleged negligent act, error or omission of a type normally covered under professional indemnity, directors and officers, management liability or similar insurance.
- Terrorism / War and Contamination Exclusions
- This Policy does not cover any claims or legal proceedings (including any costs or expenses of any description) arising out of or in connection with:
- war (whether declared or not), invasion, acts of a foreign enemy, hostilities, or any similar act, condition or warlike operation, warlike action by a regular or irregular military force or other authority to hinder or defend against an actual or expected attack;
- insurrection, rebellion, revolution, riot, attempt to usurp power, popular uprising, or any action taken by any governmental or martial authority in hindering or defending against any of these;
- discharge, explosion, or use of a weapon of mass destruction, whether or not employing nuclear fission or fusion, or chemical, biological, radioactive or similar agents, by any party at any time for any reason;
- any claims or legal proceedings (including any costs or expenses of any description) arising out of or in connection with any terrorist action (regardless of any other cause or event contributing concurrently or in any other sequence to the liability) or any action taken in controlling, preventing or suppressing terrorist action.
- This Policy does not cover any claims or legal proceedings (including any costs or expenses of any description) arising out of or in connection with any pollution, seepage, discharge, dispersal, release or escape of any solid, liquid, gaseous or thermal irritant or contaminant including, but not limited to, smoke, vapours, soot, dust, fibres, fungi, mould, fumes, acids, alkalis, chemicals and waste (including but not limited to material to be recycled, reconditioned or reclaimed) or contamination of any kind; or ionising radiation or contamination by radioactivity from any nuclear fuel or from any nuclear waste or from the combustion of nuclear fuel; or radioactive, toxic, explosive or other hazardous properties of any explosive.
The Policyholder must have paid the relevant premium and have been declared to the Insurer by the
Coverholder as having done so.
- Reporting of Claims
This is a “claims made and notified” professional expenses insurance which means that, subject to the terms of this Policy as a whole, the following conditions apply:
- Claims are only covered under this Policy if:
- the Claim is first made against the Client during the Period of Insurance; and
- the Policyholder notifies the Claims Administrator of the Claim before the expiration of the Period of Insurance.
- The Policyholder must notify the Claims Administrator by e-mail or post to the address stated in the Schedule immediately upon becoming aware of the Claim or facts and circumstances, as relevant. Delay may prejudice the Client’s legal position. If the Policyholder is in any doubt about the need to notify a Claim under this insurance or the eligibility to make a claim in respect of such a Claim, then the Policyholder should contact the Claims Administrator.
- The Policyholder will be sent a claim form. The Policyholder must fill this in fully and truthfully and return it to the Claims Administrator and give the Claims Administrator, at the Policyholder’s own cost, any documentation, evidence, or other information that the Claims Administrator may reasonably need in order to assess the Claim.
The due observance and fulfilment of the terms, conditions and endorsements of this Policy insofar as they relate to anything to be done or complied with by the Policyholder and the truth of any statements in the Policyholder’s proposal and declaration shall be conditions of any liability of the Insurer to make any payment under this Policy.
- Acceptance of claim
- The Insurer will pay the Client’s Costs incurred after the Claims Administrator accepts the Claim in writing and the Policyholder confirms in writing that he or she will co-operate with the Client to keep to the terms of this Policy.
- The Insurer will only meet the Client’s Costs of the Claim which have been agreed in advance by the Claims Administrator as to both amount and purpose.
- If the Policyholder disagrees with the Claims Administrator’s decision, the Policyholder can refer the matter under the ENQUIRIES, COMPLAINTS OR DISPUTES procedure.
- Appointment of Policyholder and Conduct of Claims
- The Client will authorise and request the Policyholder to:
- provide the Claims Administrator, as soon as reasonably possible, with:
- their views on the merits of the Claim and the strategies and timelines to resolve the Claim;
- their detailed estimate of the Client’s Costs of the Claim; and
- any information, document or file relating to the Claim, whether or not privileged, that the Claims Administrator may ask for.
- keep the Claims Administrator fully updated during the Claim:
- on the progress of the Claim, including any offers to settle;
- of any change in their views on the merits of the Claim; and
- of any change to their estimate of Client’s Costs.
- The Policyholder and Client will co-operate at all times with:
- 5.2.1 the Claims Administrator and reply promptly to any correspondence about the Claim;
- the Policyholder and provide them with all information that they need and attend meetings and hearings whenever asked to.
- In the event that the Claims Administrator considers it appropriate to refer an issue for expert determination, the Claims Administrator will nominate the expert to be appointed for that purpose.
- The Policyholder or Client must immediately write to tell the Claims Administrator of any offer made to settle the Claim including offers relating to costs. The Client or Policyholder must not accept any offers without getting the permission of the Claims Administrator first. The Claims Administrator will not withhold consent in relation to an offer that a reasonable accountant or solicitor would recommend to a private client who is paying his or her own fees. If the Client does not accept an offer the Claims Administrator considers reasonable, the Insurer will not pay any further costs.
- All accounts for Client’s Costs payable under this Policy must be submitted to the Claims
Administrator immediately upon receipt.
- If any payment in respect of Client’s Costs is made under this Policy the Claims Administrator will be subrogated to the Client’s rights of recovery. The Client will not enter into any agreement, arrangement or understanding which has the effect of limiting or compromising the Claims Administrator’s rights of subrogation.
- Assessment and Recovery of Costs
- If the Claims Administrator asks, the Client must instruct the Policyholder to send all of his or her files and any bill of costs for certification by the appropriate professional body or auditing by cost consultants appointed by the Claims Administrator.
- The Client must:
- take reasonable steps to recover all costs awarded or agreed to be paid to the Client;
- immediately pay the Claims Administrator any Costs recovered, or instruct the
Policyholder to do so.
- Notification of Alteration in Risk
The Policyholder must notify the Coverholder immediately of any alteration in risk which materially affects this professional expenses insurance. The Policyholder must also declare information in the form and at the intervals the Claims Administrator specifies and the Policyholder will pay such additional premium to, or receive a refund of premium from, the Insurer as the case may be.
The Insurer is not obliged to indemnify if, at any time the Policyholder is made bankrupt or goes into liquidation or files a bankruptcy petition or winding up petition or makes an arrangement with the Policyholder’s creditors or enters into a deed of arrangement or part or all of the Policyholder’s affairs or property are in the control of a receiver or administrator. In the event that a Client is made bankrupt or goes into liquidation or files a bankruptcy petition or winding up petition or makes an arrangement with the Client’s creditors or enters into a deed of arrangement, no Client’s Costs will be paid in relation to that Client should a Claim arise, and no further Client’s Costs will be paid in respect of an extant Claim.
The Insurer is not bound by any agreement that the Client or Policyholder makes without the Claims
Administrator’s prior approval or permission.
If the Insurer waives any right or breach of any term of this Policy, this will not waive any other right or later breach.
- Transferring the Client’s Rights
The Policyholder or Client cannot transfer their rights under this Policy.
- Other Parties and Interests
The Insurer will not indemnify anyone not declared as a Client.
The Insurer may cancel this Policy in accordance with Sections 59 and 60 of the Insurance Contracts
Act 1984 (Cwlth) by giving the appropriate notice to the Policyholder.