Frequently Asked Questions

Lets Take some of the Confusion out of Insurance!


What is Business Interuption?


The business interruption policy indemnifies the insured for the loss suffered as a result of an interruption or interference to the business by an insured peril resulting in a reduction in gross profit. The business interruption exposure is obviously linked to the underlying property exposure, since the policy is triggered by the property policy. The factors considered in assessing the material damage loss also need to be considered in assessing the business interruption exposure. These are not repeated here and users should refer to the Property Section as necessary.

In many cases, the business interruption exposure is even more significant financially than the associated physical loss. Even if there is a partial damage to the building and/or machinery & equipment, it may well stop the operations at the premises for a considerable period of time.


What is Business Management Liability?


It's not only directors or officers of large public companies who may be exposed to personal liability. If you have a small to medium sized private company, you could be protected by a policy that covers claims from a wide range of management liabilities, such as;


  • directors and officers liability

  • company reimbursement

  • company liability

  • employment practice liability

  • trustee liability

  • fidelity, and

  • business crisis consultant fees.


Policy features include:

  • cover for OH&S and pollution defence costs, including representation expenses and the insured persons’ pecuniary penalties (as permitted by law), and

  • extension of cover for company pecuniary penalties (as permitted by law)

What is Directors and Officers Cover?


Directors and Officers Liability Insurance provides essential protection if, as a director or officer, you have to fund your own legal defence and meet any damages, costs or pecuniary penalties awarded against you. This can happen when your company cannot indemnify you under the Corporations Act, or is not required to do so under your company’s constitution or your director’s indemnity agreement. Whether or not you are ultimately found liable, the cost of defending such proceedings can be considerable


We live in volatile times – persistent uncertainty in the global economic landscape has an unsettling effect on many Australian companies. As a result, corporate executives and boards of directors are arguably under greater scrutiny from their stakeholders than ever.


What is covered

D&O liability insurance covers the decisions made by people involved in managing and running an organisation. D&O insurance started out only covering the individuals’ liability, not the company’s. These days there is also the option to include cover for securities claims brought against the company. 


The individuals covered include the past, present & future:

  • Directors or officers,

  • Shadow directors,

  • Outside entity executives, and

  • Employees acting in a management or supervisory role.

What is Professional indemnity insurance? 


Professional indemnity insurance protects a business and its employees when they are sued for an act, error or omission in relation to the provision of professional services. Complicated legal issues relating to professional indemnity can result in the professional incurring significant legal costs in protecting their business and their professional reputation. A Professional Indemnity Insurance policy provides protection for the professional against those costs and the resultant impact on their business and their livelihood.


 Types of claims
  • Professional indemnity claims arising out of the provision of professional services

  • Libel, slander or defamation against a third party

  • Loss of client documentation

  • Legal liability for damages and claimants' costs/expenses arising from an act, error or omission/civil liability of the "company's" employees

  • Wrongful or inadequate advice to a third party

  • Acting without proper instructions or failure to act in accordance with the third party's instructions

  • Failure to advise third party

  • Breaches of Trade Practices Act/Fair Trading Legislation - eg misleading or deceptive conduct

  • Breaches of statutes - eg Corporations Law, Uniform Consumer Credit Code.


What is Tax Audit Insurance?


Tax Audit Insurance covers your professional accounting fees arising from an audit conducted by the Australian Taxation Office (ATO) or any other Australian (Federal, State or Territory) government agency which has the statutory responsibility to conduct audits in relation to taxation, duties, levies or other such statutory imposts in connection with a Return of your client.


Any individual or entity, can be the subject of an audit regardless of the professionalism and/or technical advice you provide.


Features of Tax Audit Insurance may include:

  • Protection for your client for professional accounting fees in relation to an Audit.

  • Reimbursement for your time and resources spent on Audits

  • Assistance from IBG in managing AuditCover Insurance

  • Product underwritten by one of Australia’s largest general insurers


Cyber Liability & Privacy Protection


Both the new Privacy legislation introduced in March 2014, and increased publicity around cyber attacks, have brought a heightened awareness of privacy and cyber exposures. The numbers are alarming with more than 20% of Australian businesses experiencing cyber crime, and 40% of all attacks directed at SME’s.


Some of the common events that can result in a cyber claim include:

  • a hack attack

  • breach of privacy

  • lost or stolen iPad or laptop


Cyber Liability & Privacy Protection policies usually provide the following key elements of cover:


  • Third Party Claims - covers the Insured's liability to third parties from a failure to keep data secure, such as claims for compensation by third parties, investigations, defence costs and fines and penalties from breaching the Privacy Act.

  • First Party Costs - reimburses the Insured for the costs they would incur to respond to a breach, such as IT Forensic Costs, Credit Monitoring Costs, Public Relations Expenses and Cyber Extortion Costs (including ransom payments to hackers).

  • Business Interruption - this section provides reimbursement for the Insured's loss of profits resulting from the breach, as well as any additional necessary expenses it may need to incur to continue business as usual.


Association Liability


Designed for not-for-profit organisations, this insurance covers the office bearers and employees against personal liability for breaches of their duties as well as theorganisation’s liability.


Policy features may include:

  • professional indemnity cover for the provision of professional services

  • association liability cover for claims against the association

  • office bearer's liability cover and association reimbursement for claims against directors, officers and employees of the association

  • employment practice liability such as wrongful dismissal or discrimination claims

  • representation expenses at official investigations or inquiries

  • fidelity cover, and

  • optional tax audit insurance.


Medical indemnity cover

Medical indemnity insurance plays a vital role within the Australian health system by working to protect both doctors and patients in the event of an adverse incident arising from medical care. While Australia’s health system is generally very safe, things occasionally go wrong and patients may sometimes be harmed in the process of receiving medical care.



Medical malpractice claims can be financially devastating for the accused party, through legal fees or disruption to business. It is important that you are protected by the correct medical malpractice insurance to minimise damages.


Malpractice claims expose medical professionals from all sectors of the healthcare industry to expensive litigation costs –regardless of whether any negligence actually occurred. For this reason, developing the right medical malpractice insurance plan is essential to all health and medical institutions, agencies, surgeries and practitioners.



General Advice Warning: Please be aware that any advice that may have been given or implied is general advice only. We have not taken into consideration your individual needs, objectives or financial requirements. Before deciding to purchase a financial product, you should consider the appropriate Product Disclosure Statement to ensure the product is suitable for your needs.