VMIA improved its Liability Insurance offering effective 1 July 2018, by combining both VMIA’s Public and Products Liability and Professional Indemnity insurance into one simpler policy.

Coverage for each of these policies is specified across two sections within the policy, clause 1.1.1 - Public and Products Liability and clause 1.1.2 – Professional Indemnity.

A new section has been added to the policy for 2020-2021 called Formal Investigation and Representation Expenses. This cover was previously provided under an extension of cover for each of the above policy sections.

With fewer definitions and simpler wording, this new single policy better reflects your current insurance requirements.

What’s covered?

Public and Products Liability

Public and Products Liability insurance provides cover for any legal liability your organisation must pay compensation for:

  • personal injury to third parties arising from business activities or goods sold
  • damage to third party property arising from business activities and goods sold
  • personal injury to third parties arising from advertising liability.

Professional Indemnity

Professional Indemnity insurance provides cover for any legal liability your organisation has for financial losses suffered by third parties arising from conduct of your organisation as a result of:

  • a breach of professional duty
  • an act, error or omission
  • misleading or deceptive conduct
  • libel, slander or defamation.

In addition to the above indemnity, both policy sections provide cover for legal costs incurred in the defence of claims made against your organisation.

Formal Investigation and Representation Expenses

Formal Investigation and Representation expenses provides cover for reasonable expenses incurred by your organisation to prepare for, respond to and attend a formal administration or regulatory inquiry, such as a Royal Commission.

Policy updates for 2020-2021

Professional Liability

  • Policy limits are no longer shown as Cover A and Cover B on your Policy Schedule
  • Mitigation costs have been added:
  • Cover for costs incurred by your organisation, with our prior consent, in taking action to mitigate or correct any economic loss that otherwise would result in a professional indemnity claim
  • New sub-limit of $100,000.

Formal Investigation and Representation Expenses

A new deductible will apply to this cover. The deductible will either be your Public and Products Liability or Professional Liability deductible, depending on which is the greatest.

More Information

Contact us on 03 9270 6900 or contact@vmia.vic.gov.au.

Please read the full 2020-2021 policy terms and conditions [PDF, 897KB].