There are two facets to the cover provided by professional indemnity (PI) insurance under the loss of documents section of the policy. Some policies will cover both facets, but there are others that will only cover one or the other.
A PI insurance policy normally covers the liability of the insured to a third party and the first facet of cover provided by the loss of documents extension covers the same liability where the claim is made as a result of the loss of certain documents. The documents that are covered are set out in the policy wording. This generally will include most written or printed documents, but will not include any negotiable instruments of any kind. Some policies may also include computer tapes or disks.
The other cover that can be provided by this extension is for the physical loss of the documents and the costs of replacing and / or restoring them.
The CPA Australia Scheme includes cover for both of the above.
This is the fifth in a series of articles by Fenton Green & Co, CPA Australias insurance broker, on issues to consider when selecting your professional indemnity insurance.
Further information
