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Professional Indemnity

Why the LBA Professional Indemnity Scheme

  • The most progressive Collective of Risk Advisers in the Country
  • Litigation is going to be more prolific moving forward
  • The most cost effective scheme for the benefits provided
  • Covers the adviser your business entity and non income producing employees
  • Underwritten by an insurer (Lumley General Insurance (NZ) Limited) that has experience in the insurance intermediary sector
  • Extended to cover Acc Advice
  • Investment advice extension (Defence Costs)
  • The more LBA Members that participate will ensure the benefits of the scheme keep improving

Summary of Benfits

Insured: Members of LBA
Business of the Insured: Sales & Promotion of Life, Investment & General Insurance Products, Financial Planning & Mortgage Broking Services
Period of Insurance: 1 October 2010 to 1 October 2011
Limit of Indemnity Options: $2,000,000 anyone Claim + 1 Reinstatement
$3,000,000 anyone Claim + 1 Reinstatement
$5,000,000 anyone Claim + 1 Reinstatement
Retroactive Date: Unlimited excluding known claims or circumstances
Territorial Limits: New Zealand & Australia
Jurisdictional Limits: New Zealand & Australia
Shared Excess Layers: $8,000,000 anyone claim $16,000,000 in the aggregate
Excess: $1,000 each and every claim excluding Costs & Expenses
Automatic Extensions:
  • Fair Trading Act 1986
  • Defamation
  • Intellectual Property
  • Joint Venture Liability
  • Dishonesty of Employees
  • Loss of Documents
  • Consultants & Sub- Contractors & Agents
  • Fiduciary Duty
  • Continuous Cover Clause
  • Outgoing Principals, Partners, Directors & Employees
  • Severability
  • Acquisitions & Creations
  • Previous Subsidiaries
  • Run off Cover
  • Automatic Reinstatement
  • Costs of representations at Disciplinary Proceedings
  • Discovery Period
  • Incoming Partners/Directors Principals previous business
  • Fidelity
  • Advice for Acc Cover
  • Section 12 Cover
  • Insolvent Insurer Legal Costs Cover
Public Liability: $5,000,000 Nil Excess
Statutory Liability: $1,000,000 Nil Excess
Employers Liability: $1,000,000 Nil Excess
Internet Liability: $250,000 each and every claim
$5,000,000 shared aggregate Limit For all members of LBA		 $1,000 Excess
Trustees Liability: $250,000 per adviser Nil Excess
Underwriter: Lumley General Insurance (NZ) Limited
Premiums: $2,000,000
$3,000,000
$5,000,000		 $1,137.50 + GST P.A.
$1,365.00 + GST P.A.
$1,774.50 + GST
  • Premiums can be paid monthly at no extra cost
  • Investment Advice Extension (Automatically Included)
  • Lumley shall indemnify the insured for Costs & Expenses incurred with the written consent of Lumley in the defence of any claim made against the insured. The limit of indemnity available shall be limited to $50,000 per insured subject to an annual aggregate $1,000,000 for all insured’s under the LBA scheme programme.
  • The excess applicable to this extension shall be $5,000 each and every claim, inclusive of costs and expenses.

More information

All Enquiries regarding the scheme contact the administrators

Compliance

LBA members have found the following forms useful in ensuring that their business practices comply with current laws.

Collecting and retaining personal information concerning your clients:

Ensuring that there is no confusion or doubt concerning the extent of the service you are providing with regard to the Consumers Guarantee Act 1993:

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