Insurance

 

Why must I hold insurance? 

 

Section 5.2 Insurance of the Fire Protection Accreditation Scheme (FPAS) requires accredited individuals to be appropriately covered by insurance for the regulated work they perform. 

 

Public and product liability and professional indemnity insurances protect both practitioners and their assets against claims in response to injury / property damage or against the professional services they provide. 

 

What insurance must I hold as an accredited individual? 

 

Section 5.2 Insurance of the Fire Protection Accreditation Scheme requires an accredited individual to have the following minimum insurance cover: 

  • public and product liability:  $10 million; and
  • professional indemnity for any one claim of: 
    • $2 million inclusive of defence costs; or
    • $1 million exclusive of defence costs.

 

Public and products liability and Professional indemnity insurance must: 

  • include in the list of business activities, all work activities relevant to the accreditation class and category held;
  • be in the name of the accredited individual or the company name only and not be a joint policy with any other party; and
  • cover all past work of an accredited individual whilst accredited with Fire Protection Association Australia (FPA Australia) up to a maximum of 10 years.

 

 

What is public and product liability insurance? 

 

Public and product liability insurance covers third parties against injury and/or property damage as a result of your occupation.  This includes the associated legal costs, in the event a claim is made.

 

 

What is professional indemnity insurance? 

 

Professional indemnity insurance covers negligence arising from professional advice or services provided to clients. This includes the associated legal costs, in the event a claim is made against the business by third parties. 

 

 

How does professional indemnity insurance work? 

 

Professional Indemnity (PI) is a claim made basis insurance, which means you must have a current insurance policy in place in order to make a claim. 

 

Section 5.2 Insurance of FPAS outlines that accredited individuals must maintain insurance for up to 10 years after finalising accreditation. This is to ensure accredited individuals are covered for any claims that may be made against them for the period of time they were accredited.

 

 

Why do I need both public and product liability AND professional indemnity insurance?   

 

Both public and product liability insurance and professional indemnity insurance cover different scenarios which accredited individuals must be insured for.

FPA Australia recommends you contact your insurance provider to explain this in more detail.

 

What insurance must an accredited practitioner provide to FPA Australia? 

 

Accredited individuals must provide a certificate of currency from their insurer as proof of their insurance cover for both public and product and professional indemnity insurance. 

 

 This certificate should be on the insurance company's letterhead and should include: 

  • insurance company name;
  • confirmation that the insurance is public liability or professional indemnity insurance;
  • confirmation that the insurance covers civil liability for accredited competent fire safety practitioners;
  • the policy number;
  • the name of the insured;
  • the professions that the policy covers;
  • the words"Fire Systems Design"or"Fire Safety Assessment";
  • the start and end dates for the policy;
  • the retroactive date - the date from which the insurance applies;
  • limits of indemnity:
    • for public and product liability:  minimum $10 million; and
    • for professional indemnity:  minimum of $2 million (inclusive of defence costs) or $1 million (exclusive of defence costs) for any one claim; and
  • the Aggregate Limit of each policy.

 

 

This advice is general and does not take into account your objectives, financial situation or needs. You should consider whether the advice is suitable for you and your personal circumstances. If you have any further questions, please email FPA Australia at fpas@fpaa.com.au