Our large number of members, with similar needs, gives LPMS excellent buying power resulting in comprehensive high quality insurance cover.
We obtain rapid response to notification of possible claims with confidential advice to members from experienced practitioners, our specialist insurance consultants and legal advisers. Polices as arranged via LPMS are relevant to the New Zealand commercial and legal environment.
The LPMS Professional Indemnity policies are modern “civil liabilities” contracts of insurance which cover Members for legal liabilities to clients or third parties caused by errors or omissions or breach of professional duty in the performance of their advice or services. The costs of legal defence are also provided when this is appropriate.
The policies include a number of automatic and optional extensions:
The LPMS Statutory Liability policy is designed to cover the costs of legal defence and the settlement of fines or penalties as may imposed by the courts for inadvertent breach of a range of statutes, except for breaches of certain Acts that are considered against the public interest or involve the enforcement of tax collections by the revenue collecting authorities.
Excluded from the policy are any fines, penalties or infringement fees under the Health & Safety in Employment Act 1992. The Health & Safety in Employment Amendment Act 2002 (“HSE Act”) enacted by the Government on 1 May 2003 prohibits insurance against the fines or penalties under that Act.
Legal defence costs, however, are still included and the policy has been extended by LPMS to cover any reparation awards (victim compensation) under the HSE Act.
Some of the significant Acts that are included and have particular relevance to Members, amongst others, are:
The General (Public) Liability policy caters for liabilities arising from “accidents” or “occurrences” in business that cause either property damage or personal injury to members of the public, as distinct from the liabilities that arise from the provision of professional advice. Examples of general liability claims may be accidental damage caused to rented premises (i.e. glass breakage, water damage or fire) or accidentally knocking over another party’s equipment whilst carrying out a site inspection.
The policy includes a number of automatic extensions:
The Employment Practices Liability policy provides coverage in two sections:
Legal costs and awards against members as employers following claims by current, former or prospective employees for breach of employment contracts and breach of certain provisions of the Human Rights Act 1993 and the Privacy Act 1993.
Legal costs incurred in the defence of injunctions or applications for reinstatement brought against an employer by current, former or prospective employees.
The Accident Insurance Act 1998 provides statutory coverage for personal injury to employees in New Zealand caused by “accidents”.
The Employers Liability policy is designed to include the costs of defence and any awards of compensation to employees for personal injuries falling outside of the scope of the Workers Compensation legislation in New Zealand.
This form of coverage is aimed at picking up certain of the “residual commercial risks” that may fall outside the scope of Professional Indemnity cover as a “difference in conditions” protection to augment Professional Indemnity cover (.e.. to cover the liability Directors & Officers may have for any “wrongful acts” in the management of a firm and/or other matters that may fall outside the scope of Professional Indemnity Cover)
It is available for the directorships and appointments within a Member Firm and for any outside appointments to other Companies undertaken by principals and staff on behalf of the firm. This extended coverage is not intended to apply to any listed companies.
Herewith some text for Cadastral Surveys
“Subsection (1) of the Cadastral Survey Act 2002 states that if an error is found in a cadastral survey dataset affecting any title under the Land Transfer Act 1952 or tenure under any other Act, the Surveyor General may, in writing, require the cadastral surveyor responsible for the error to undertake the work necessary to correct the error.”
Under the Act, the Surveyor is personally responsible for the cadastral survey, not necessarily the firm or company for whom the Surveyor works or may have worked in the past. The LPMS Professional Indemnity Insurance policy responds on behalf of the current or former Partners, Directors and Employees, subject of course, to its terms conditions and limitations to a legal liability for claims for damages by parties to whom a duty of care is owed that may have suffered a proven loss as the result of an erroneous survey. This is provided a Member Firm continues to take out Professional Indemnity Insurance under the LPMS Scheme, The Surveyor’s own costs to correct any erroneous survey will, in any event, of course have to be met by the Surveyor.
A Partner, Director or Employee will not, however, continue to be covered, if for instance the firm does not for some reason have a current policy when a circumstance that may give rise to a Claim is first discovered or a Claim is first made. Alternately, if a firm ceases practice and does not take out the appropriate “Run Off” cover, then the former Partners, Directors or Employees will not have insurance for past work.
LPMS provides an Extension of cover for any Partner, Director or Employee who has no other recourse to “Run-Off” cover from their work with a former practice in respect of S52 claims. This Extension is optional and can be applied for by the Member Firm.
The limit of indemnity under the Extension is $250,000 for any one claim and in the aggregate for all claims during the Period of Insurance, with a costs inclusive Deductible of $5,000.
The Professional Indemnity policies do not contain any specific exclusion relative to a loss arising from civil liabilities when providing professional advice or services through use of the Internet or E-Commerce communications.
The Internet Liability policy provides for other liabilities which can occur for a Member including the transmission of viruses to various other sites, defamation, infringement of intellectual property, breach of copyright, confidentiality, transmission of obscene material and other issues arising from the non-professional or non-work related activities of the staff with access to the Internet, Electronic mail or any Electronic Network.
The Legal Defence Costs policy is designed, in general terms, to provide for emergency legal advice at any time, day or night, and meet legal costs if a Partner, Director or Employee of a Member Firm is wrongly sued or charged with a work related criminal offence.
The types of legal defence costs included:
LPMS provides an annual renewable Complimentary Professional Indemnity “Run Off Cover for retired Principals of long term Members:
LPMS has a Complimentary Term Life Cover for Principals of long term Member Firms:
