Who is Pacific Indemnity?
Pacific Indemnity Underwriting Solutions Pty Ltd ABN 14 606 511 639 is a boutique underwriting agency specialising in professional risk insurance products. The Australian Financial Services Licence number of Pacific Indemnity is 480863.
Launched in September 2015, Pacific Indemnity is led by Jun Acance who is one of the industry’s most respected professional risk underwriters and is widely known for his expert underwriting knowledge having led the CGU Professional Risks business unit for over 15 years and having in excess of 25 years experience with professional risk insurance. Jun is supported by a team of highly skilled and experienced underwriters.
Who are the insurers behind pacific indemnity?
Pacific Indemnity issue policies on behalf of Insurance Australia Limited (IAL) ABN 11 000 016 722. IAL’s Australian Financial Service Licence number is 227681.
On 1 August 2017 CGU Insurance Limited ABN 27 004 478 371, as part of Insurance Australia Group Limited ABN 60 090 739 923 (IAG), transferred all of its insurance into a related company IAL.
As a result, Pacific Indemnity now issue policies on behalf of IAL. For more details, see ‘Why has CGU Insurance Limited has transferred its business into Insurance Australia Limited?’ below.
Why has CGU Insurance Limited has transferred its business into Insurance Australia Limited?
Transfer of CGU Insurance Limited business into Insurance Australia Limited
Pacific Indemnity Underwriting Solutions Pty Ltd, specialises in Professional Risk insurance (including Professional Indemnity Insurance, Malpractice Insurance, Information & Communication Technology Insurance and similar products).
In arranging this insurance, Pacific Indemnity is acting on behalf of the insurer, Insurance Australia Limited (IAL) ABN 11 000 016 722 AFSL 227681.
What did happen?
CGU Insurance Limited ABN 27 004 478 371 had its Federal Court of Australia Confirmation Hearing and received approval to transfer all of its insurance into a related company Insurance Australia Limited ABN 11 000 016 722 (IAL) on the 1 August 2017. CGU’s application was one of seven happening at the same time, as separate IAG businesses are transferred into IAL.
Why did IAG do this?
CGU was part of Insurance Australia Group Limited ABN 60 090 739 923 (IAG). Businesses within IAG had nine separate insurance licences. IAG is working to become a simpler, more efficient and agile business. Reducing the number of insurance licences they hold will help to achieve this, and will contribute to providing a better service to customers.
What does this mean for our customers?
The transfer has no impact on our customers. The terms of the policy does not change after 1st August 2017 other than IAL becoming the insurer under the policy; there is no impact on claims; and your policies will continue to operate and be renewed in the same way.
How to find out more?
More information is available at www.iag.com.au/licences.
What is the financial security of policies issued by pacific indemnity?
Standard & Poors have affirmed the financial strength rating of Insurance Australia Limited at AA-
What experience do the pacific indemnity underwriters have with professional indemnity?
Pacific indemnity is led by Jun Acance who is one of the industry’s most respected professional risk underwriters and is widely known for his expert underwriting knowledge having led the CGU Professional Risks business unit for over 15 years and having in excess of 25 years experience with professional risk insurance. Jun is supported by a team of highly skilled and experienced underwriters.
What does a professional indemnity policy cover?
Persons and companies who provide advice or service of a specialised nature, whether for a fee or not, are required by law to provide that service or advice with due care and skill so as not to cause their client or a third party loss, damage or injury. If they do cause loss damage or injury then the aggrieved client or third party may make a claim to recover or be indemnified for that loss, damage or injury. Professional Indemnity insurance provides cover to pay any such claims on behalf of the insured. In addition, the insurance will provide cover for legal and other costs incurred in investigating and defending such claims.
What is a claims made policy?
A Claims Made policy is a form of insurance contract which only covers claims made against the insured during the policy period arising from facts that were first discovered by the insured in that policy period. The claim may arise from acts, errors or omissions at any time (subject to any retroactive cover limitations). If the insured first becomes aware during the policy period of facts that might give rise to a claim – then the insured may notify the insurer (pursuant to Section 40(3) of the insurance Contracts Act) and any claim which eventuates from the facts so notified will also be covered under the policy which is in force at the time of notification, notwithstanding that the claim was not made during the policy period.
How is a claims made policy different to other types of liability policy?
Most insurance policies covering liability (whether a public liability policy or other form of liability policy) will provide cover for claims arising out of events occurring during the policy period.
A Claims Made policy is different in that the date of the event is not relevant (except if retroactive cover is limited) – what is important is when the insured first became aware of the claim or the facts which might give rise to the claim.
Why is it important to notify claims or facts that might give rise to a claim when i first become aware of them?
Claims Made policies will typically exclude cover for claims arising from ‘known claim circumstances’ as at the policy inception. If an insured does not notify a claim during the period of the policy in force at the date of the claim, then cover under that policy may be in question. Any subsequent policy will typically exclude cover for that claim.
What if i don't disclose potential claims to an insurer before the policy incepts?
A failure to disclose known claims to a new insurer is likely to have several consequences. Firstly cover under the expiring policy for that claim will not be triggered if that claim is not notified to the expiring insurer before policy expiry; secondly, an insured has a duty of disclosure to the new insurer. A breach of that duty of disclosure may have negative consequences for cover under the new policy. As a minimum that claim will be excluded from cover under the new policy by reason of the known claims and circumstances exclusion.
What if i don't renew my pi policy?
A Professional Indemnity (PI) policy written on a Claims Made basis only covers claims first made during the policy period and claims arising from facts first discovered and notified during the policy period. Once a policy expires no new claims can be made on that policy notwithstanding that the work giving rise to the claim may have occurred during the policy period. Any claims made after the policy expiry will not be covered if a policy is not then current. Accordingly, if you don’t renew your policy you will not be covered if a claim then is made arising from work done in the past. This is particularly important to note if you are no longer in business, you may like to enquire about obtaining run-off cover.
What is a civil liability?
A Civil Liability is a liability one party has to another party arising under the civil law as opposed to the criminal law or statutory law – although some statutes give rise to civil liability – particularly related to consumer protection. Typically civil liability results in claims for compensation.
What is continuous cover?
Continuous cover is in effect a loyalty bonus – so that if an insured first becomes aware of facts that might give rise to a future claim in one policy period but fails to notify that to the insurer then so long as the insured renews cover with the same insurer (without any hiatus in cover) then (subject to the terms of the continuous cover clause in that policy wording) the insurer will not apply the known circumstances exclusion in the policy in which the claim was notified. The insured will be entitled to cover under the later policy subject to qualifications – such as the limit and scope of cover not being more than under the policy in force at the time the claim could have been originally notified – and possibly cover being potentially reduced due to any prejudice suffered by the insurer arising from the delayed notification.
What is the difference between a 'costs inclusive' excess and a 'costs exclusive' excess?
If the excess is inclusive of costs – the excess will be required to be paid towards costs and expenses incurred in investigating and defending claims.
If the excess is costs exclusive the excess will only be required to be paid when a claim settlement payment is made.
What is the difference between a 'costs inclusive' limit and a 'costs exclusive' limit?
If the limit is inclusive of costs then investigation and defence costs are not covered in addition to the policy limit.
A Costs Inclusive limit is therefore more restrictive than a costs exclusive policy limit.
The policy limit - are there restrictions on claims covered by the policy limit?
The policy limit is typically an aggregate limit. The policy will typically have a limit any one claim (which is the policy limit) and any number of smaller claims can be covered up to the amount of the policy limit. The policy may be subject to a reinstatement or a higher aggregate limit – which may define how many policy limit amounts the policy will cover in the aggregate.
What are reinstatements?
A reinstatement is a multiple of the policy limit (typically one) for unrelated claims. Subject to the policy wording, a reinstatement may be triggered after the first claim.
Are reinstatements different to an aggregate limit?
An aggregate limit is the limit in aggregate for all claims in the policy period. It may be equal to the policy limit (equivalent to no reinstatement) of more typically may be multiples of the policy limit – equivalent to number of reinstatements.
What is retroactive cover?
The policy will cover claims made arising from acts, errors or omissions which may have been made before the policy period. If there is no retroactive date then typically there is no limitation on retroactive cover. If a retroactive date is specified then claims will only be covered if they arise out of acts, errors or omissions after that specified retroactive date.
how do i obtain a username and password to use the broker portal?
Only our partner brokers can be issued with a username and password to utilise the Broker Portal to obtain a quote for Professional Indemnity.
If you are a partner broker requiring a login, please speak to your underwriting contact or email us at email@example.com
Don’t know about the Broker Portal? Please have a look at these documents to see how it works:
what do I do if I didn't receive my password?
Click the FORGOT PASSWORD link on the Login page to go to the ‘reset password’ page.
Enter the details (please enter your first name and last name starting with a capital, e.g. Joe Bloggs) and click ‘submit’. An email containing a link to reset and create a new password will be sent.