Liability Limit
Organisations can choose a policy with a $2M liability limit or a $5M liability limit.
Duty of Disclosure
Below is the Duty of Disclosure which applies to all of the LCIS policies. It is important that you disclose to us all information which we request and any information which you feel is relevant to us accepting the policy. If you are unsure, talk to the LCIS team for guidance.
In addition, you must keep us updated of any changes to your organisation prior to renewing the policy. Some of the information we require for the Association Liability policy includes (but not limited to):
- Current Number of members (not just committee members) as defined in your constitution.
- Turnover of the Association
- Objectives and Activities of the Association
- Any claims, or any incidences which may result in a claim.
Duty of Disclosure
Before you enter into an insurance contract, you have a duty of disclosure under the Insurance Contracts Act 1984. You have a duty to tell us anything that you know, or could reasonably be expected to know, may affect the insurer’s decision to insure you and on what terms. You have this duty until the insurer agrees to insure you. You have the same duty before you renew, extend, vary or reinstate an insurance contract.
If we ask you questions that are relevant to the insurer’s decision to insure you and on what terms, you must tell us anything that you know and that a reasonable person in the circumstances would include in answering the questions.
Also, we may give you a copy of anything you have previously told us and ask you to tell us if it has changed. If we do this, you must tell us about any change or tell us that there is no change. If you do not tell us about a change to something you have previously told us, you will be taken to have told us that there is no change.
You do not need to tell us anything that reduces the risk insured, is common knowledge, the insurer knows or should know as an insurer or the insurer waives your duty to tell them about.
If you do not tell us something
If you do not tell us anything you are required to, the insurer may cancel your contract or reduce the amount it will pay you if you make a claim, or both. If your failure to tell us is fraudulent, the insurer may refuse to pay a claim and treat the contract as if it never existed.
This Policy Is ‘Claims Made And Notified’
This is a type of insurance contract. This means that the policy covers you for claims which are made against you and notified to the insurer during the period of cover, irrespective of the date when the cause of action may have occurred. We strongly recommend that you implement a program to ensure that all claims are identified and notified immediately and within the policy period.
The policy should be maintained whilst the Association is in existence. If the Association ceases operation, a ‘run-off’ cover can be considered in case a claim is made in the future. Should a ‘run-off’ cover be required, please talk to the LCIS team.
A ‘Claims Made And Notified’ Policy May Not Respond To
- claims or circumstances known to you or notified to an insurer prior to inception of the policy;
- circumstances notified after expiry of the policy;
- claims notified after expiry of the policy.
Where you become aware of facts or circumstances that might give rise to a claim against you, you should notify us in writing as soon as practical, before the policy expiry date.
We will then forward the notice to the insurers on your behalf.
Delay in notifying the insurer or failure to provide all relevant facts could result in the claim being denied.
Excess
An excess is a payment you are required to make in the event of a claim, however most of our policies have low or no excess. This Association Liability policy has nil excess.