30/06/2006
Professional Indemnity Insurance
INSURANCE PROGRAM
ICB is proud to announce the appointment of Willis Insurance Australia as broker of choice in preparation of the ICB Professional Indemnity Insurance program. The Insurance being provided by Dexta Corporation.
ICB & Willis have worked together to create a policy relevant and costed to all bookkeepers, from those in sole practice just for themselves through to larger organisations with multiple employees providing services. Designed and priced to appeal to bookkeepers. (ICB definition of bookkeepers: All persons commencing with data entry through processors, accounts clerks,reviewers, payroll administrators and troubleshooting consultants.)
Professional Indemnity Insurance, other than just being logical, is required for all members of ICB who are in the business of providing bookkeeping services. A professional bookkeeper is assisted in establishing their credibility through being able to state that they are insured.
PI insurance is about you protecting your client but also yourself in the case of error.
The ICB PI program
The following is a bullet point summary of policy coverage offering,
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Premium Cost effective policy limit per bookkeeper,
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Costs Exclusive policy limit, ie Defence Costs in addition to, and not part of, the Policy sum insured,
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Costs Exclusive policy excess, ie no excess applies to Defence Costs. The policy excess is only $1,000 too,
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Civil Liability policy coverage. This is broader than a negligence wording as it covers strict liability where no negligence is involved,
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Broad business description to cover the many normal business activities of bookkeepers,
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One Reinstatement of Policy Limit per period of insurance,
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Automatic policy coverage up to the policy limit for: Libel, Slander or Defamation; Intellectual Property Rights; Misleading, Deceptive or Unconscionable Conduct; Loss of Documents; Dishonesty of Employees
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Policy coverage to a sub limit of $100,000 for Costs of Official Inquiries,
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Policy coverage to a sub limit of $50,000 for Fidelity,
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Automatic coverage for employees of bookkeepers and cover for any sub contractors whilst performing work on behalf of Insured bookkeepers can be negotiated case by case,
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Broad Definition of Claim
Reading between the lines you can see that it is a policy very applicable to us as bookkeepers. NOTE your costs involved in defending a claim ARE NOT part of the excess nor limit. NOTE Inclusion of employees and sub-contractors to be considered.
PREMIUMS
Willis Insurance Australia has created a PI insurance package with premiums I believe are attractive and applicable
The premiums vary based on two main factors
1) The level of fee income that you earn
2) The level of cover that you require
Your precise premium is confirmed following your submission of an application for Insurance.
Stamp duty is on the premium (excluding the GST). GST is on the premium (excluding stamp duty).
Where a bookkeeper has fee income up to $120,000pa; indicative (all costs included) total premiums of $528 (GST Incl.) + stamp duty for cover of $250,000 per claim through to $1089(GST Incl.) + stamp duty for $2m cover.
Where your fee income is upto $150k then premium range is $621 through to $1430
Where your fee income is upto $250k then premium range is $940 through to $2233
Stamp Duty rates
State |
Rate |
VIC |
10.00% |
NSW |
5.00% |
QLD |
5.00% |
WA |
10.00% |
SA |
11.00% |
TAS |
8.00% |
NT |
10.00% |
ACT |
10.00% |
Insurance enquiries to
Andrew McInnes
Commercial Manager
Professional Risk Practice - Commercial
Willis Australia Limited
GPO BOX 956
Melbourne, Vic, 3001
Tel(direct): 03 8635 1136
Toll Free: 1800 184 025
Fax(direct): 03 8635 2679
Email: mcinnesa@willis.com
