[BPP] Business Practices Protection

Statutory Liability|Defence Costs Indemnity|Employment Practices Liability|Directors & Officers Liability
 
Have you ever considered your client’s vulnerability to fines and penalties imposed by breaches of Acts of Parliament? Did you also realise that investigations and prosecutions brought by Government agencies may not necessarily be covered under a Directors & Officers Liability Policy? What about discrimination complaints, wrongful dismissals and other employment practices?
Companies and individuals can be held responsible not only for their own actions but also for those of others. These areas can be complex and often misunderstood – the cost to your clients can be substantial.
Specialist Underwriting Agencies Pty Ltd, in conjunction with the underwriter, Wesfarmers General Insurance Ltd T/as Lumley General, has created a policy that will protect these Business Practices by combining a Defence Costs Indemnity policy with two already successful products: Statutory Liability and Employment Practices Liability.

Statutory Liability

What is covered:
 Fines
 Costs and expenses to defend the imposition of a fine
 All acts administered by Commonwealth, State and Local Government
 Includes legislation relating to Workplace Health & Safety and Environmental Protection.
What isn’t covered:
 Intentional, deliberate, dishonest, fraudulent or malicious acts, including acts of Gross negligence or recklessness
 Fines attributable to the requirement to pay taxes (ie GST related issues)
 Fines arising from Industrial Disputes and/or breaches of Consumer Protection Acts. However, under some circumstances cover is provided for Officers and/or employees

Defence Costs Indemnity

What is covered:
 Legal expenses arising from:
 The requirement to attend a Royal Commission or Coronial Inquiry
 Any other investigation, examination, inquiry or other proceeding
 Any other writ or summons that is not coverable under any other policy of general insurance.
What isn’t covered:
 Intentional, deliberate, dishonest, fraudulent or malicious acts, including acts of Gross negligence or recklessness
 Any damages, including fines, penalties and punitive costs
 Legal expenses arising from Industrial Disputes and/or breaches of Consumer Protection Acts. However, under some circumstances cover is provided for Officers and/or employees

Employment Practices Liability

What is covered:
 Wrongful termination, failure to promote, refusal to employ and/or demotion
 Harassment, including invasion of privacy
 Unlawful workplace harassment, unlawful discrimination or unlawful workplace bullying
 Defamation of character; Libel and/or slander
 Damages, which includes humiliation, mental anguish claims the third party suffers
 Legal costs in defending an allegation

What isn’t covered:
 Any express obligation, or breach thereof to make payments ie. of statute, award, contract of employment etc
 Any dishonest, criminal, fraudulent or wilful act, failure to comply with any law, government or administrative order or regulation, or order or award of any court or tribunal
 Claims arising from Laws relating to:

• Redundancy payout procedures;
• Unconscionable contracts.

Directors & Officers Liability -Only Available With Defence Cost Indemnity

What is covered:
 Damages and Legal Costs arising from alleged Wrongful Acts arising from Duties as a Director or responsible person
 Advance Payment of Defence Costs
 Spousal Property  

What isn’t covered:
 Not available for Publicly Listed companies
 Trading whilst insolvent
 Major Shareholders/Insured Vs Insured                                                Inadequate acquisition price

These four covers are now available in the one product, with aggregated limits of $1,000,000, $2,000,000 and $5,000,000.

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