Childcare Providers07 August 2018
What is Public Liability & Professional Indemnity Insurance?
The main difference between Public Liability and Professional Indemnity can briefly be described as follows.
Public Liability insurance protects Child Care providers against claims such as bodily injury or property damage for which they can be held legally liable. It is important to note though that most Public Liability policies exclude claims arising out of a breach of Professional Duty, so you should also obtain Professional Indemnity Insurance for this exposure.
Professional Indemnity insurance protects you for claims made against you by third parties for errors, omissions or negligent acts arising out of the operation of your Child Care business and therefore potentially a breach of Professional Duty which then results in the (alleged) personal injury or property damage.
It is a common misconception that all Public Liability and Professional Indemnity policies are equal. Among an extensive list of differences in the products available there are two key policy types.
1) Claims Made
Covers demands for compensation made against you during the insurance period. It is the policy you have in place at the time a claim is made (Claims Made) against you, irrespective of when the actual “occurrence” happened. If you don’t have an insurance policy in place at the time a claim is made against you, no insurance protection is provided under a Claims Made policy wording.
Claims made contracts of insurance require the policy holder to notify the insurer of all known incidents that may result in a claim being made against you in future within the 12 month policy period. Failure to disclose such incidents will result in no insurance protection being provided for said incident.
2) Occurrence – Preferred
An Occurrence based policy wording covers claims that arise from incidents which “occurred” during the period of insurance, irrespective of the date the claim was made. It is the policy in force at the time the incident occurred that responds.
Professional Indemnity insurance has typically adopted the Claims Made Basis for all insurance contracts. Our new to market Professional Indemnity coverage is written on an Occurrence basis to fit the particular needs to the child care industry.
If a child is injured due to inadequate supervision, courts may consider this a breach of professional duty and the claim would then have to be paid under a Professional Indemnity policy. If you consider the above diagrams and the statute of limitations it is of significant benefit to the Child Care industry to have both Public Liability & Professional Indemnity insurance on the Occurrence Policy basis.
Bridging The Gap
Historically changing your insurance from a Claims Made to Occurrence basis would leave a gap in cover. Our new method of placement remedies the issue, allowing you can make the switch without any gap in cover.
Advantages Of This Tailor Made Package
- Occurrence policies do not require expensive run-off insurance, saving you money and anguish
- One insurer for both covers, alleviates the potential for a claim to fall into the area of uncertainty between the two covers.
- No Limitation for Molestation claims
- Australian Authorised Insurer
- Competitive Premiums
- Work experience students (included)
- Events and fundraising (included)
Our Childcare Insurance Package Can Be Tailored To Include Additional Protection At Competitive Premiums
- Property & Contents
- Business Interruption
- Mechanical & Electrical Equipment Breakdown
- General Property
- Management Liability
- Cyber Protection
- Personal Accident & Voluntary Workers
Childcare Insurance Package Is Available To Individuals & Organisations
- Kindergartens & preschools
- Day Care
- Occasional & Vacation Care
- Play Centre Cafés
- Nanny’s & Babysitters
- Home Based Childcare
- Property Owners – Are you responsible for outgoings? Package & Save.
Tel: (07) 5579 1600
Policy Not Due Yet?
If your policy isn’t due just yet but you would like to discuss your options closer to the time, or you would like further information, fill in this form and we will be in touch.