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)
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.
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.
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:
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).
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.
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.
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.
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.
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”
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:
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.
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.
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:
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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:
premises or expresses dissatisfaction with any of the Client’s GST returns in writing;
The following exclusions apply in respect of this Policy:
Client that the investigation has been completed; and/or
Client’s business profits. Where appropriate, Policyholder’s fees will be apportioned.
or following the transfer of an enquiry to that Division;
Superannuation Industry (Supervision) Act 1993 (Cwlth); and/or
The Insurer will not pay for:
Directors are ordered or agree to pay.
Policyholder was aware of facts or circumstances that might give rise to a Claim;
Advice Provider and/or Insurer about this Policy;
This Policy does not provide cover in relation to Claims not arising out of the Normal Business
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.
The Policyholder must have paid the relevant premium and have been declared to the Insurer by the
Coverholder as having done so.
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:
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.
Administrator immediately upon receipt.
Policyholder to do so.
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.
The Policyholder or Client cannot transfer their rights under this Policy.
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.