Every business has associated risks, and whilst risk management procedures and control are paramount, insurance protection should be maintained in the unthinkable occurs.

1. IT Professional Indemnity & Liability
Insurance Commonly Asked Questions

2. Every business has associated risks, and whilst risk management procedures
and control are paramount, insurance protection should be maintained in the
unthinkable occurs.
If, in business, we could control all outcomes, we would not need insurance –
but as no has the ability to predict what’s round the corner. Knowing and
understanding what risks are associated to your business and others, it not
only realistic, but smart.
For example, A third party, being a customer, supplier, competitor, regulatory
authorities such as ACCC, ASIC, EPA, Industry bodies and others can make a
claim against you, if they have allegedly suffered a loss due to negligence (or
alleged negligence) of your Professional Services.
The Importance of Insurance Protection

3. Claims can arise from various allegations including:
• Breach of your duty of care
• Negligence / Common Law Matter
• Civil Liabilities
• Conflicts of Interest
• Breach of Confidentiality
• Trade Practices Act 1974 (Misleading and Deceptive Conduct) the Fair
Trading Act 1987 (NSW), the Fair Trading Act 1985 (Victoria) or similar
legislation enacted by the other States or Territories of the
Commonwealth of Australia
Types of Claims

4. To obtain a quotation, enquire online at www.it.optimuminsurance.com.au
As every business is different, we have several options for businesses to
obtain quotations:
• Comparative Quotation – this option is ideal for businesses with under
$2million turnover. You can obtain a quotation specific for your businesses
needs and purchase cover online.
• Online Application – Business’s exceeding to $2million turnover, please
complete the online proposal form. This will enable a quotation to be
provided based on your specific business needs.
In most circumstances we are able to provide an quote over the phone. If
you would like to discuss your needs further, contact us on 1300 739 861.
Compare Insurance Quotes & Buy Online

5. Commonly Asked Questions

6. Is anyone who gives to another person advice and/or services of a skilful
character according to an established discipline might be regarded as a
'Professional'. That means persons other than those in 'traditional'
Professions, such as doctors and lawyers, are now considered to be
Professionals i.e. Computer consultants, advertising agents, acoustics
consultants, trade associations and fund managers.
Who is a Professional adviser?

7. A Professional will hold himself or herself out as having a special skill, which
can be relied upon by another. Consequently the law requires that the
Professional exercise the required skill to an appropriate level expected by
that profession. Professionals are only human and mistakes do happen. Any
financial loss, injury or damage arising from a mistake or failure by the
Professional to exercise the required level of skill may mean that an award is
made in favour of a person who suffers a loss, damage or injury. A
Professional may also be held to be liable for a mistake even though there
was no negligence.
Why do Professionals need Professional
Indemnity Insurance?

8. Professional Indemnity policies are “Claims Made” policies, that is they only
cover Claims made or Known Circumstances that you become aware could
reasonably be expected to give rise to a claim that arise during the period of
insurance. Acts or omissions may have occurred in a prior period and, as long
as the act or omission, was after the retro-active date, the policy will extend
to those prior acts. It is essential to maintain continuity of Professional
Indemnity insurance cover (no gaps in the period of cover) as Claims made
against you or Circumstances of which you become aware could give rise to a
claim, will not be covered if they are not disclosed within the period of
insurance where they first arise. If there is any claim or potential claim or
even a circumstance that could reasonably be expected to give rise to a
claim, it should be reported to your insurer immediately it is known,
regardless of your own view as to fault. If you know of a claim or
circumstance and it is not reported within the insurance period in which it
arises your insurance policy is unlikely to respond.
Claims Made Policy

9. Professional Indemnity Insurance is offered on a "Claims Made" basis of
cover, which means that it only covers Claims made or Known
Circumstances that you become aware could reasonably be expected to give
rise to a claim that are notified to the insurer with in the current policy period
What is a Claims Made Contract?

10. A 'known circumstance' could be defined as any fact, situation or
circumstance, which a reasonable person in the insured’s professional
position would have thought, might result in someone making a claim against
him/her. Therefore if a claim arises after the inception date of the policy from
a fact, situation or circumstance that the insured knew or should have
known, at the time of the commencement of the policy that might give rise to
a claim, it would normally be excluded as it arose from a ‘known
circumstance’.
‘Known Circumstances’

11. By notifying all circumstances that might give rise to a claim, during a policy
period, an insured can get the benefit of their statutory rights under Section
40(3) of the Insurance Contracts Act 1984 (the Act). Section 40(3) provides
an insured with statutory rights to notify a circumstance or insured, to an
insurer, during the currency of the policy. If a claim eventuates against an
insured from the notified circumstances, then the insurer cannot deny
indemnity, despite the fact that the claim arose outside the period of
insurance.
Therefore, any fact, situation or circumstance, which a reasonable person in
the insured's professional position would have thought might result in
someone making a claim against them, should be notified to their current
insurer.
The Importance of Notifying All Known
Circumstances

12. If you change insurers, you will need to notify your insurer of every
conceivable circumstance before the expiry date of your policy. If this is not
done, and if a claim was to occur in the future from a circumstance not
previously notified, you may be left uninsured, with neither the previous or
the current insurer accepting liability for the claim. The prior insurer may
deny the claim as the insured failed to notify the circumstance or claim during
the period of insurance
Changing From One Insurer to Another

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14. Contact Us
Phone +61 1300 739 861
Fax +61 1300 732 225
Hours 9.00am to 5.00pm (EST)
Monday – Friday
Email service@optimuminsurance.com.au
Website www.optimuminsurance.com.au
Presentation Disclaimer –– “This material contains general information only and may not suit your
particular circumstances. To decide if a policy is right for you please carefully read the relevant Product
Disclosure Statement (PDS) and/or Policy wording. A copy of the PDS or policy wording is available by
contacting our office on 1300 739 861;”
Disclosure Statement – “Optimum Insurance Services Pty Ltd is a Corporate Authorised
Representative of Insurance Advisernet Australia Pty Ltd (Car No. 291220), Australian Financial Services
Licence No 240549, ABN 15 003 886 687.”