Liability insurance premium increase
AON our insurance brokers have advised us that over the last few years the liability insurance market has hardened with Insurers requiring a mandatory 5% increase in premiums for open market placements. For full information click on the Insurance link to the right. The change is a result of high frequency and high cost claims arising from Earthquake and flooding perils within New Zealand. The costs associated with these claims have filtered through to the liability market. Unfortunately the change has now begun to impact on scheme business and this has resulted in an increase in premiums as follows:
Limit of Indemnity $500,000 has increased from $140.75 to $163.75
Limit of Indemnity $1,000,000 has increased from $169.50 to $192.50
Limit of Indemnity $2,000,000 has increased from $192.50 to $221.25
Students Limit of Indemnity $500,000 has increased from $57.50 to $143.75
Why do I need indemnity insurance?
Claims can come from upset clients who feel they have suffered additional expense or stress and/or consider your performance was below professional standards. Sometimes complaints can come from the families, particularly when children are involved. Sometimes clients or their families are simply unhappy with the way they have been treated or feel their expectations have not been met. These situations can result in complaints being made directly against you or via OTNZ-WNA or sometimes directly to a higher authority such as the Health and Disability Commissioner.
Other sources of claims arise from alleged breach of confidentiality or privacy, defamation, loss or destruction of documents in your care, investigations into an incident by the Occupational Therapy Board of New Zealand or through an accident compensation inquiry.
Often these types of claims do not result in large settlements or compensation payments and can be dealt to without any court action or the need for a formal inquiry, but they do need to be handled appropriately and often quickly. Your liability insurance policy also gives you access to specialists who assist in managing these types of scenarios and can provide you with support and advice.
OTNZ-WNA strongly recommends all private practitioners to take out professional indemnity insurance. OTNZ-WNA has secured special rates for liability insurance – to be eligible for this policy you must be a current member of OTNZ-WNA Aotearoa.
The period of insurance runs from 1 July 2017- 1 July 2018 with individual cover starting from your payment date until the 1 July. If you pay for the cover any day after the start of the period, you will not be covered for the full period.
Who provides insurance?
The cover is managed by insurance advisers Aon who work with the association to provide you with comprehensive affordable insurance in the specialist area of professional liability.
Vero Liability Insurance Limited is the Insurer, one of the largest and most experienced professional risks insurers in Australasia. Under the Insurance (Prudential Supervision) Act 2010, Vero Liability Insurance Limited carries a financial strength rating of A+ (Strong) as rated by Standard and Poor’s and has been given a Stable outlook.
What am I covered for?
Professional Indemnity (PI) provides each member with their own transportable protection designed to defend against allegations of professional negligence, acts, errors or omissions in the course of practising (or as a student) in the profession of an occupational therapist.
- Legal costs and expenses
- Settlements and court awards
- Other associated costs that may arise out of an official investigation or enquiry
- Access to specialists who assist in managing these types of scenarios and can provide you with support and advice.
- Cover for fines or penalties that may be awarded against you by a tribunal, board or other regulatory body that has jurisdiction to investigate you and award fines.
- Cover relating to your liability to others arising out of the ownership, occupation or use of property or products used in your profession. Products include property sold, supplied, constructed, repaired or installed by you.
Claims can arise from:
- Upset clients who feel they have suffered additional expense or stress and/or consider your performance was below professional standards.
- Sometimes complaints can come from the families, particularly when children are involved.
- Sometimes clients or their families are simply unhappy with the way they have been treated or feel their expectations have not been met.
These situations can result in complaints being made directly against you or via your Association or sometimes directly to a higher authority such as the Health and Disability Commissioner.
Other sources of claims arise from alleged breach of confidentiality or privacy, defamation, loss or destruction of documents in your care, investigations into an incident by the Occupational Therapy Board of New Zealand or through an accident compensation Inquiry.
As with any contract, the liability insurance policy is a contract with terms and conditions that have to be adhered to. Aon can provide you with advice and assistance around understanding your policy obligations.
How much am I covered for?
Option 1: $500,000 any one claim and $1,000,000 in the aggregate
Option 2: $1,000,000 any one claim and $2,000,000 in the aggregate
Option 3: $2,000,000 any one claim and $4,000,000 in the aggregate
Option 4: Student $500,000 any one claim and $1,000,000 in the aggregate
How much is the excess?
An excess of $250 each and every claim ‘costs exclusive’ applies.
Features and restrictions
- Includes your employees (provided they are not occupational therapists) who assist you with your role as an occupational therapist
- Existing insured members are able to apply for Run Off cover should they cease active practice in New Zealand due to retirement, maternity leave or leaving New Zealand. Cover is provided for six years and is available to members who have continuously held insurance through the OTNZ-WNA facility for two or more years.
- Insurance arranged specifically for occupational therapist practitioners
- Internet Liability Cover (NEW!) Sub Limit $100,000 any one claim and in the aggregate – provides cover for claims made against you arising out of your use of the Internet or Email. This includes cover for breach of copyright arising from use of information on a website, unintentional transmission of a computer virus via email, defamation.
- Cover extended to Australia and the Pacific where the insured member is temporarily (less than 8 weeks) undertaking training or attending a conference where practical therapy is provided. The excess under this cover is $2,000 each and every claim costs inclusive. Please contact us if you would like to arrange cover for this.
- Claims could be excluded if they arise from any deliberate or reckless breach of civil, statutory or professional duty.
- Known claims or circumstances that exist prior to the insurance policy
- Activity outside of New Zealand
- Asbestos, terrorism or war
- Trading debts, insolvency
- Fraud or dishonesty
- Personal injury to employees
- Claims that fall outside the retroactive date
- You are covered for your past activities provided you were a member of OTNZ-WNA at the time. The only provision is that any existing claims or known circumstances that you were aware of before the insurance policy was taken, are excluded.
- Claims or inquiries not brought against you as the individual occupational therapist but against a trading entity or company name that you may work under.
COVER IS NOT EXTENDED TO CLAIMS MADE AGAINST YOUR TRADING ENTITY OR COMPANY NAME!
We will automatically issue you with a quotation with your individual membership certificate, where you have identified on your proposal form that you own and operate under a limited liability company or trading name.
Who should I talk to?
For an application form or if changes are required to your existing cover please contact OTNZ-WNA on 04 473 6510 or email [email protected]
For specific policy queries please contact Lisa Bryant 04 819 4080 or email [email protected]