CGU is a leader in Professional Risk Insurance and has been one of Australia’s leading Professional Indemnity providers for the past 20 years
CGU’s Professional Indemnity policy provides your client’s business with comprehensive protection against claims for financial loss, bodily/personal injury or property damage arising from an act, error or omission in the performance of professional services covered by the policy.
Put yourself in their shoes…
The Insured designed a bulk storage warehouse in Queensland, the owner of which used it to store a potassium based fertilizer. Three months after the construction of the warehouse was completed, the wall panels of the warehouse began to bow and crack under the weight of the fertilizer. The Insured believed the warehouse would only be used for the storage of a nitrogen based fertilizer (a lighter substance) and designed the warehouse on this basis. The owner produced a design brief which does not restrict the intended use to a nitrogen based fertilizer. The Insured was found to be at fault and liable for rectification costs amounting to $1 million.
The Insured was appointed as the managing agent (MA) under a lease of a large commercial premises in a suburban shopping centre. The lease came up for review failed to issue the notices required by the lease for the formal review to occur. The tenant argued that the time for review of the lease had passed and that the rent could not be reviewed for a further 12 months. Upon investigation, it was clear that the MA's systems were simply at fault and that the formal notice had not been issued. The landlord missed out on the increased rent for 12 months so it pursued the MA for damages. Valuation evidence was obtained as to what would have happened under the rent review with the matter being resolved by commercial negotiation for an amount in excess of $100,000.
Clients of the Insured made a claim against the Insured alleging that the Insured was negligent in failing to advise the passengers about the travel conditions of the country they were visiting. As a result, the passengers alleged that they incurred additional expenses and part of the travel arrangements had to be cancelled. The insured advised that the passengers were cautioned about visiting the country at that particular time because it was in the middle of a religious festival. As a result, certain facilities would not be open and they were at risk of not being able to travel on a particular tour. As the Insured had documented evidence of their advice, on their behalf we denied liability to the clients as the clients decided to travel in spite of the Insured’s warnings. We incurred legal costs on behalf of the Insured of approximately $1,100 in defending this claim.
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