Comcare purchased directors and officers’ liability insurance and professional indemnity insurance for 2010–11 from Comcover.
The insurance provided coverage for the CEO and senior executive staff. Members of the Commission are covered under a separate insurance policy. Directors and officers’ liability insurance covered the consequences of any wrongful act of these officers.
Comcare is also required to notify Comcover as soon as practicable, or within 30 days of the expiry of the cover, of any incidents that may give rise to a claim under this cover. There is no excess payable in the event of a claim under this insurance cover with the exception of defence costs which have a $2000 limit.
The cost to Comcare of directors and officers’ insurance for 2010–11 was $25 920.36 (not including GST).
There were no claims against the directors and officers’ liability insurance during 2010–11.
Professional indemnity insurance indemnifies Comcare, the CEO and senior executive staff, for damages or judgments and defence costs awarded against Comcare arising from the execution of or breach of their duty. Directors and officers’ liability does not cover any wilful breach of duty. Comcare is required to pay the first $20 000 of any claim made for professional indemnity.
Comcare is also required to notify Comcover within 30 days of becoming aware of a claim for loss in respect of this insurance, or within 60 days of the expiry of the cover, but as soon as practicable.
The cost to Comcare for professional indemnity insurance for 2010–11 was $39 523.84 (net of GST).
There were no claims against the professional indemnity cover during 2010–11.