Chris Lamb, account manager at Wymark Sirius Insurance Brokers, explains the key terminology that it’s important to understand when it comes to insurance policies.
With regard to pest control insurance policies, there are three key definitions that pest managers need to understand.
Claims made policies
Claims made policies require all claims and any fact, situation or circumstance that is likely to result in a claim, to be notified to the insurer within the Period of Insurance. The actual mistake could occur at any time after the retroactive date.
The Insured must not have had any prior knowledge of the fact, situation or circumstance before the Period of Insurance. Claims made policies are renewed on an offer and acceptance basis.
The policy will only provide indemnity in respect of conduct and wrongful acts committed (or alleged to have been committed) after this date, the retroactive date.
Period of insurance
Professional indemnity and similar contracts require actual replacement each year. The period of insurance, usually one year, relates to the period in which claims must be both discovered and notified. Upon the termination of the contract all liability ceases absolutely except for those circumstances which were notified within the period of insurance.
To protect against any claims that may arise once a policy is cancelled or lapsed, run-off Insurance is strongly recommended. Run-off insurance is available if ceasing just a particular activity of your business (such as termite work), and also available to protect all past business activities if you retire, sell your business and/or leave the industry. Often times, the first notification of a claim may be 12 months or longer after the actual work was performed, and if you are no longer in business, Run-off insurance is vital to protect against these types of claims.
Wymark Sirius Insurance Brokers have a wide range of products available to pest controllers, building inspectors, pool safety inspectors and carpet cleaners. Our specialised pest, building and pool safety inspectors insurance facility is underwritten by QBE an ‘Australian authorised insurer’. Our brokerage was established in 1985 and our pest control facility has now been offering insurance services to the market for over ten years. In the event of a claim Wymark Sirius Insurance Brokers will stand with you. Our very experienced claims management team will ensure your case is professionally managed to completion.