Honan Insurance Brokers in association with the
Bookkeeping
Institute of Australia (BIA) has created a special Professional
Indemnity and Public/Products Liability coverage for all Bookkeepers
in Australia.
The draft Tax Laws Amendment Bill 2007 provides for Bookkeepers that meet
certain requirements to become BAS service providers. As part of these
changes, BAS service providers will need to effect their own
Professional Indemnity Insurance to undertake BAS work.
Honan's research has found that insurance is available to Bookkeepers via a
number of alternative arrangements but these other policies are often
“shared policies” where the sums insured for Professional Indemnity is
shared between all members of associations to which they belong.
The BIA
has been keen to develop stand alone policies where members have their own
individual policy limits rather than sharing the policy limits with
other Bookkeepers. This means that in the event of a claim, the policy
limit was available for your own sole use and not used or reduced by
claims from other Bookkeepers. If you hold a current Professional
Indemnity Insurance Policy you should contact your association or
insurance broker and ask if it is a shared or stand alone policy.
The BIA Bookkeepers Professional Insurance policy is a stand alone policy
limit contract and it is a package of Professional Indemnity and Public
Liability insurance.
The Professional Indemnity policy is purchased with a set limit of
indemnity of $1,000,000, any one loss and in the annual aggregate, with
one automatic reinstatement. This is the minimum limit and higher limits
are available on request.
The Public/Products Liability policy is purchased for a set limit of
$10,000,000 any one claim and unlimited in the aggregate. This is the
minimum limit and higher limits are also available on request.
BIA Membership of the BIA starts from $110 annually and the
cost for Professional Indemnity Insurance is a flat rated cost of $648
for all BIA members. Honan Insurance Brokers can also assist with your Office insurance, Workers
Compensation insurance and any other insurance need.
Why is Professional Indemnity necessary?
Where a Company or an Individual provides Professional Advice to third
parties, the need exists to cover any resultant financial loss which a
third party incurs as a direct result of that advice.
Many clients require special terms, conditions or extensions to
adequately address the exposures of individual clients. These can range
from Dispute Resolution Facilities through to internet exposures.
What the BIA Professional Indemnity Policy Covers
The policy which BIA has arranged for its members and MYOB Certified
Consultants, is designed to provide reimbursement for
legal liability
arising from any
Claim
which is first made against the
Insured
being first reported and notified to the Insurance Company during the
same period of insurance for a
breach of professional duty
in the conduct of the
Business.
The
Business
of Bookkeepers is described in the policy as Bookkeeping including data
collection and preparation of records for accounts, all BAS data
collection and reporting, all GST data collection and reporting, all
payroll activities, all credit control work, all cash payments work, all
reconciliation work and all reporting work.
The policy triggers by reason of a
Claim
being made alleging an act, error or omission occurring on or after the
commencement of your policy or such earlier time specified in the
Retroactive Date.
The policy is a Claims Made contract for all matters First Notified
during the period of Insurance. The Policy Excess starts from $1,000
each and every claim. The policy will also pay defence costs incurred in
investigation, defence or settlement of any claim for which the Insured
is entitled to cover under the policy, all with written prior consent of
the Insurance Company.
Where a Company or an Individual occupies premises, visits clients or
provides goods or services they are at risk of causing bodily injury or
damaging property belonging to others and the need exists to cover such
Third Party bodily Injury and property damage occurring in connection
with the business or a product sold or supplied.
The Insurance Industry offers this cover under the name of General
Liability or Third Party Liability but it is perhaps best known as
Public Liability Insurance.
What the BIA Policy Covers
This policy has been designed to provide you with coverage against all
sums you become legal liability to pay as compensation to third parties
for
personal injury or property damage
first occurring during the period of insurance within the territorial
limits as a result of an event arising from the business and / or the
provision of services.
The
Business
of Bookkeepers is described as the professional activity of Bookkeeping
including data collection and preparation of records for accounts, all
BAS data collection and reporting, all GST data collection and
reporting, all payroll activities, all credit control work, all cash
payments work, all reconciliation work and all reporting work
The policy is an Occurrence based contract for all claims which occur
during the period of Insurance. The Policy Excess is $500 each and every
claim.
In addition, coverage is provided for all costs and expenses incurred in
investigation, settlement or defence of any claims for compensation and
associated legal costs all incurred with the prior consent of the
Insurance Company.
Territorial Limits
The policy covers any Bookkeepers activities anywhere in Australia.
Contact Details
A copy of the insurance policy is available from Honan insurance Brokers
on request.
Please click here to view the proposal form for this insurance.
Honan Insurance Brokers would welcome the opportunity of tailoring a policy to
suit your specific needs.
Please Contact:
Alan
Taylor or Deborah Downes
Honan
Insurance Brokers,
AFS
License No. 246749,
695 Burke
Road, Camberwell Vic 3124
Phone: (03) 9813 1244
Fax: (03) 9813 5744
Disclaimer:
BIA receives commission payments from Honan Insurance Brokers in
regard to this insurance policy.
