General Insurance Policy Concepts
18 Docs
What should I do if I receive a letter of demand
Last Updated: June 19, 2025If you receive a letter of demand alleging that your work has caused financial loss, property damage or any other issue, you should not respond directly or admit liability. The best course of action is to notify your insurer immediately. A letter of demand is often the first indication that a claim may arise under your Professional Indemnity policy. These letters typically request compensation, corrective action or a formal response to a perceived error or omission in your work. Here’s what to do: Do not reply to the letter without speaking to your insurer or broker first Do not admit fault or offer to pay, as this could prejudice your policy Forward the letter to us, and we will notify your insurer on your behalf Allow the insurer to appoint a legal advisor or provide instructions on how to proceed Acting promptly helps ensure your rights under the policy are preserved and gives your insurer the best chance to manage the situation effectively. If you need assistance, please contact us, and we will guide you through the necessary steps to protect your engineering business.
What is General Property Insurance
Last Updated: June 19, 2025General Property Insurance provides cover for portable tools, equipment, and electronic devices that are used for business purposes and taken off-site. It is ideal for tradespeople, consultants, and mobile businesses that rely on essential equipment away from their main premises. Common items covered under a General Property policy can include: Hand tools and power tools Laptops and tablets Mobile phones Surveying or testing equipment Specialist trade or professional gear Cover typically applies while these items are in transit, at a job site, or stored in vehicles. The policy can often be tailored by specifying individual items over a certain value, or applying a blanket limit across multiple tools.
How do I determine what my Insurance Policy covers me for
Last Updated: June 19, 2025The two key documents to review are your Policy Schedule and the Policy Wording. The Policy Schedule provides a summary of your cover. It outlines: Your individual policy limits Insured items Excess amounts, and Any special conditions or endorsements. The Policy Wording explains the cover in more detail. It outlines: What is included, What is excluded, How claims are managed, and Your responsibilities as the insured. If you are unsure how to interpret these documents or would like help understanding what applies to your business, we are always happy to walk through them with you and highlight the sections that matter most. Please feel free to contact us with any questions you might have.
What is a Certificate of Currency
Last Updated: June 19, 2025A Certificate of Currency (often referred to as a ‘COC’) is a document that verifies you have an active and valid insurance policy. It is provided once you have paid for your insurance policy. It is commonly requested by clients, principals, government departments, or licensing bodies before you begin work. The certificate outlines key insurance policy details such as: The insured’s name – i.e who is the policy covers Type of cover – i.e. does is cover for Professional Indemnity or Public Liability Policy limits – i.e. what is the limit of cover or sum insured The insurance period – i.e. the date the policy starts and finishes While it doesn’t include the fine print or policy terms (those are in the Policy Wording), it serves as proof of your active coverage. If you need one urgently, we can usually provide it on the same day by contacting us.
Why does my premium go up if I haven’t made a claim
Last Updated: June 24, 2025This is a common and fair question. It can feel frustrating when your premium increases even though you have not made a claim. The reality is that premiums are not only based on your individual claims history, but also on a range of broader factors that affect insurers’ costs and risk assessments across your industry or sector. Rising claim costs across the market: The cost of settling claims has increased in many areas, including legal expenses, labour, materials and specialist services. Even if you have not claimed, these rising costs affect how insurers price risk for everyone. Impacts of natural disasters or large-scale events: Major storms, floods, bushfires or other disasters increase claim numbers across the industry. This can impact the insurance pool as a whole, including sectors such as construction, engineering, and property-related businesses. Changes in your business: Growth in turnover, new services, extra staff or entering new markets can all change your risk profile. Even positive changes can result in an insurer reassessing your premium. Market and underwriting changes: Insurers regularly review their appetite for certain industries or types of risk. Changes in reinsurance costs, inflation and claim trends can influence premiums, even if your own record is...
What can I do to Reduce My Premiums
Last Updated: June 24, 2025There are several practical ways to help manage and reduce your insurance premiums without compromising the protection your business needs. Some of these include: Increase your excess – Choosing a higher excess means you agree to cover a larger share of any claim. This can help lower the cost of your premium. Strengthen your risk management – Having clear policies, procedures, training and systems in place to reduce the chance of a claim can work in your favour when insurers assess your risk. Avoid frequent small claims – While insurance is there to protect you, making multiple low-value claims over time can lead to higher premiums. Where possible, it may be worth weighing the benefits of claiming or managing a smaller loss yourself. Consolidate your coverage – Placing multiple policies with one insurer can sometimes lead to package discounts or improved terms. It is also a good idea to review your cover regularly. You may find you are still paying for insurance that no longer suits your business, or that a different policy structure could provide better value. At Webber Insurance, we are here to help you review your options and work with you on strategies to keep your premiums as...
How are Premiums Calculated
Last Updated: June 24, 2025Your insurance premium is based on the insurer’s assessment of how much risk your business presents and the likelihood of a claim. This is combined with the level of cover you choose and other factors that help the insurer work out the price for protecting you. Some of the things that influence your premium include: Your industry or occupation Your turnover or number of employees The type of insurance and level of cover you select Your claims history Where your business operates and what activities you carry out How your policy is structured, including any limits, sub-limits or excesses Certain industries carry higher risks than others. For example, professional indemnity insurance can be more complex for an insurer to assess because it involves looking at the advice or services you provide. Insurers also consider broader factors, such as market conditions, reinsurance costs, and inflation, which can impact pricing across the board. What makes up the final premium? Your total premium includes more than just the base cost of the insurance itself. When you pay a premium, it generally covers: The insurer’s charge for taking on your risk Government charges & levies such as stamp duty, emergency service levy and GST...
What Questions Should I Be Asking About My Insurance
Last Updated: June 19, 2025Good insurance decisions start with asking the right questions. These questions help ensure your cover fits your risks, contracts, and future plans. Here are some key questions to think about when reviewing your insurance: Do I have the right type of cover and enough of it? Consider whether your current insurance accurately reflects your activities. For example: Does it cover your core services or activities, including any recent changes? Have you chosen the right limits to match your exposure, contracts, or client expectations? Is your sum insured or limit of indemnity still appropriate? Are there any exclusions, conditions, or limits I should be aware of? It is easy to assume you are covered for everything, but policies often have exclusions or conditions that may not be apparent. Ask: Are there any gaps in your cover that could leave me exposed? Do I fully understand what is not covered or where limits might apply? Are subcontractors, contractors, or consultants included if I use them? Does my insurance meet contract, licensing, or regulatory requirements? In many industries, insurance is not just a safeguard; it is a requirement. It is worth checking: Does my policy meet the minimum standards required by contracts, tenders,...
How Often Should I Review My Insurance Program
Last Updated: June 24, 2025Your insurance should keep up with your business. As a general guideline, it is advisable to review your insurance program at least once a year, typically around renewal time. This helps make sure your cover still suits what you do and the risks you face. There are also times when it is worth checking in sooner. Some of these include: If you have taken on new contracts or larger projects If your services or activities have changed If you have added new staff, locations or equipment If your turnover has grown or your business has entered new markets Even small changes in how you operate can affect your risk profile. A regular review provides peace of mind that your insurance accurately reflects your business’s current status, not its past performance. At Webber Insurance, we’re always happy to review your policies whenever something changes or if you’d like a fresh look at your coverage. Our team is here to help you stay protected as your needs evolve. If you would like to arrange a review or have questions about your current coverage, please get in touch with us.
Why Use An Insurance Broker?
Last Updated: June 19, 2025Insurance can be complicated, and it’s not always easy to work out what cover you need or whether you’re getting good value. That’s where an insurance broker comes in. A broker works for you, not the insurer, and their job is to help you find the right cover, at the right price, with the right support when you need it most. One of the main benefits of using a broker is their ability to offer advice that’s specific to your circumstances. They take the time to understand your business or personal situation, assess the risks you face, and recommend insurance that suits those needs. This is especially important when you have unique requirements or risks that aren’t easily covered by a standard policy. Here’s how a broker can help: Provide expert advice tailored to your situation Find the right insurance by comparing options from multiple insurers Identify potential gaps in coverage and explain them in plain language Arrange specialised cover for harder-to-place risks Brokers can also save you time and give you peace of mind. Instead of comparing quotes and policy wordings yourself, your broker handles the research, presents clear options, and helps you avoid being caught out by hidden...
What is a Limit of Indemnity
Last Updated: June 19, 2025The limit of indemnity is the maximum amount your insurer will pay for a claim or a series of claims under a policy. It is similar to a sum insured; however, a limit of indemnity is typically found in policies such as Professional Indemnity, Cyber Insurance, and Management Liability Insurance. This limit is a key component of your cover and is outlined in your Insurance Schedule and Certificate of Currency. Some policies have limits “per claim” and “in the aggregate,” meaning there’s also a total annual limit. For example, you might have a $2 million limit per claim and a $4 million annual limit. Government contracts, professional bodies, or client agreements may require a higher limit of indemnity. It’s essential to select a level that accurately reflects your exposure, not just the minimum required. We can assist you in determining the suitable limit of cover for your business. Contact us for additional help.
What is an Exclusion vs Condition vs Limitation
Last Updated: June 19, 2025When you take out an insurance policy, it’s essential to understand not only what is covered, but also where coverage ends or is qualified by specific terms. This is where exclusions, conditions, and limitations come into play. These terms help define the scope of your insurance and set out the circumstances in which your policy will or won’t respond to a claim. Exclusion An exclusion refers to something that your policy specifically does not cover under any circumstances. If an event or item is excluded, it means no claim can be made for that particular type of loss or liability. Example: A Professional Indemnity policy may exclude claims arising from asbestos exposure. A Business Insurance policy may exclude flood damage unless flood cover has been specifically added. Exclusions are designed to remove certain risks from your policy, typically those that are uninsurable, require specialist cover, or fall outside the scope of standard protection. Condition A condition is a rule, duty, or requirement that you, as the insured, must meet for the policy to apply or for a claim to be paid. Conditions help ensure that risks are managed properly and fairly. Example: A Public Liability policy might include a condition requiring...
What is an Excess
Last Updated: June 19, 2025An excess (or deductible) is the amount you agree to pay towards the cost of a claim before your insurer contributes. It represents your share of the risk and helps keep premiums affordable by discouraging minor or frivolous claims. Your excess is usually clearly shown on your policy schedule and may differ depending on: The type of policy (e.g., Business Property, Professional Indemnity (PI), Public Liability (PL), Motor Insurance) The section or coverage type within the policy The specific circumstances of a claim Excesses can work differently for different types of insurance policies. For example: Business Property Insurance With Business Insurance or Commercial Property Insurance, excesses can vary depending on the section or insured event. For example: A standard excess may apply to fire, storm, or malicious damage. A higher or separate excess may apply for theft, flood, or glass breakage. Additional excesses could apply for specific perils, locations, or types of property (e.g., portable electronics). Each section’s excess will apply separately if claims arise under multiple sections of the policy from the same event. Professional Indemnity In Professional Indemnity insurance, the excess applies to the settlement amount and/or legal costs, depending on your policy: Inclusive excess means your excess applies...
What is a Retroactive Date
Last Updated: June 19, 2025Your retroactive date is the earliest point from which your insurance will respond to claims. It applies to claims-made policies, such as Professional Indemnity, and determines how far back the policy will protect your work. For example, if your retroactive date is 1 July 2020, your current policy will cover claims made today that relate to work done any time after that date. Some insurance policies may show a retroactive date of ‘unlimited.’ This means there is no retroactive date, and all past work may be covered. Maintaining the same retroactive date each year, without interruption in coverage, is essential. If you let your policy lapse, you may lose that prior protection, even if you later take out another policy. When changing insurers and/or brokers, it is essential to ensure that your retroactive date aligns with your new coverage to maintain uninterrupted coverage. Please feel free to contact us for any questions you might have about a suitable retroactive date.
What is a Claims Made Insurance Policy
Last Updated: June 19, 2025A “claims made” insurance policy is a type of policy that provides coverage for claims made against you during the period your policy is active, regardless of when the work that gave rise to the claim actually occurred. This differs from “occurrence-based” policies, which respond to claims arising from incidents that occurred while the policy was in force, even if the claim is reported later. Professional Indemnity Insurance, Management Liability Insurance, and Cyber Insurance are examples of claims-made insurance policies. Whereas Business Insurance, Public Liability Insurance and Commercial Motor Insurance are examples of occurrence-based insurance policies. ** Note, however, that the portion of Products Liability within a Public & Products Liability policy may be claims-made. A claims-made insurance policy is designed to protect professionals and businesses from legal liability associated with advice, services, or decisions that may not surface as an issue until months or even years later. With claims-made insurance, your protection depends on having an active policy at the time the claim is made and reported. This means that if you cancel your policy or let it lapse at renewal, you could lose cover for work you’ve done in the past, even if you held insurance continuously for many...
What is Run-Off Cover
Last Updated: June 19, 2025Run-off cover is a type of insurance that kicks in after you stop working, retire, or sell your business. Run-off cover extends a claims-made insurance policy, protecting you against claims that arise from past work, even when you are no longer operating. It’s most often used with Professional Indemnity Insurance, which only responds to claims made during the policy period. Without run-off, you could be left exposed if a client brings a claim months or even years after your last job. Run-off can usually be arranged as an annual policy or paid up-front for multiple years. It has a step-down premium calculation, with a rough indication being that for 7 years of run-off cover, the premium will be around 4 times your last insurance premium. For example, your final year premium is $2,000. To obtain 7 years of run-off coverage, the premium will be approximately $8,000. If only one year of run-off cover is required, the premium is generally the same as your final year’s premium, which in this case would be $2,000. ** Note that each insurer operates differently and may offer amounts that differ from the indicated amount. ** Run-off is a smart way to protect your legacy...
What is an Occurrence-Based Insurance Policy
Last Updated: June 19, 2025An “occurrence-based” policy covers events that happen during the policy period, even if the claim is made years later. Public Liability Insurance and most property insurance policies (like home and business insurance) work this way. Note – Whilst the public liability portion of a public and products liability policy is occurrence-based, the products liability component is generally claims-made. If someone is injured while your policy is active, and they make a claim down the track, you’re still covered, as long as the incident occurred while your policy was in place. If an incident occurs after the policy is no longer active, there is generally no coverage available. This type of policy offers long-term peace of mind for past incidents, but you’ll need to ensure the policy is active when work is being done to trigger the cover. Contact us today if you have any further questions.
What is Contractual Liability
Last Updated: June 19, 2025Contractual liability refers to liabilities you agree to under a contract, even if they wouldn’t normally be your responsibility under common law. Some contracts include clauses where you agree to “hold harmless” or indemnify another party for loss, damage, or negligence. Standard insurance policies may not automatically cover this extra responsibility. In fact, many have exclusions for contractual liability unless the insurer has agreed to the terms. Before signing contracts, it’s advisable to have your broker review any indemnity clauses. You may need to disclose them or negotiate the terms to avoid gaps in your cover. To learn more about contractual liability and its relationship to your insurance program, please visit our page on Contractual Liability Essentials. If you require further assistance, please get in touch with us.