AVR-Chat

On Saturday 03 September 2005 11:12, Don Ingram wrote:
> > The story so far:
> > Worker's compensation is compulsory in Australia if
> > you operate as a company. Should look at some other
> > form of accident insurance if you don't.

> In Queensland at least, Worker's compensation is mandatory if you
> employ others. If you are the company director / sole employees
> then you are exempt. In QLD the definition of a worker has been
> dramatically revised & may include independent contractors which
> come to your premises & use your equipment. In short they have
> extended it to just about everybody aside from yourself...
> Directors are expendable.

Pretty much the case in WA. Directors can be insured by Worker's
Comp. but it's likely that the insurer will never pay anyway. The
government actually sees sense in accepting that. Directors work
under their own direction so they cannot insure themselves.

Accident insurance is a worthwhile "extra" for directors. Something
to pay the bills while you're laid up in hospital.

> $5M is a common PI requirement, but becoming increasingly
> difficult to obtain. The kicker is that after years of scaring
> everyone with horror stories to encourage people to require/buy
> bigger policies the Insurance Industry has done a back flip and
> doesn't want to write the insurance!  They have discovered that
> selling a $5M policy to someone that would be adequately covered
> by a $1M actually just makes them potentially liable for a higher
> risk if the issue goes to court. Figure that! ( & that IS directly
> from the horses mouth).

The case of blood from a stone.

Insurers scared themselves more than anybody else. There were a
flurry of huge claims when Lloyds wasn't able to cover its
liabilities and the underwriters had to feed themselves somehow so
the ire of PI risk became the catch-cry. As you note; the insurers
have begun to realize that they're only creating trouble for
themselves.

-- 
/"\ Bernd Felsche - Innovative Reckoning, Perth, Western Australia
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