RTO Insurance Group - Frequently Asked Questions
a product of Members Benefits GroupRTO Insurance Group is pleased to announce that we now have all your insurance requirements for the Registered Training Organisation (RTO) Industry.
The following are some of the more frequently asked questions about the RTO Professional Indemnity policy as supplied by RTO Insurance Group.
Q. Will my policy cover me for a claim or an incident that happened say 2-3 years ago, but has only now been reported to us?
A. Yes, this is called Retroactive cover. If no retroactive date is specified in your schedule or the date specified is “Unlimited” then cover applies irrespective of when the alleged act, error or omissions were committed.
Q. What is automatic reinstatement?
A. An automatic reinstatement will automatically reinstate the limit of indemnity to the original limit following a claim.
Q. Will my policy cover me when I use Contractors to perform certain types of work?
A. Yes, the policy will cover you for claims brought against you arising out of an act, error or omission allegedly committed by the contractor for which you are legally liable. The cover will not extend to the contractor themselves as they should have their own policy in place. However, if you require to extend the policy to cover a contractor under your policy then we will need to have them individually named subject to additional information that the insurer may require.
Q. The policy seems to cover most things and it is competitively priced with a low excess. How come you can do this now when it has been hard to get all these things in last 3 to 4 years?
A. It has taken some time to do this for the RTO Industry. We did an extensive study of the Training and Education industry, looked at their normal activities then analysed the information and investigated the claims. In the end, we found the insurance industry did not have a good understanding of the risks involved and generally rated insurance premiums not on training or tuition but within the industry in which they work.
Q. How have you addressed the ongoing issue of providing competitively priced insurance going forward as we want to make sure that the service will be available in future years?
A. A major factor in putting the program in place was the creation of AARTO, specialist organisations servicing in the industry and professionals working in the industry. Its agenda is to create a specialist company like RTO Insurance Group where essential services that are importantly needed are made available to RTOs. It has also given a commitment to the Insurance Company where they have more confidence in being involved with the RTO Industry.
Q. We have had some problems with insurance companies in the past where a claim occurs, we report it to them and never hear anything then all of a sudden it is settled and the winners are the solicitors. Will we be likely to see the same with you guys?
A. In past years, some insurance companies were poor at keeping clients involved with what was happening to reported claims / incidents. We know the importance of getting involved early in the claim process to try to nib it in the bud before it becomes a big issue. Our roll is to get the full story of what happened and try to commercially resolve the matter before anyone runs to their solicitors and it gets blown out of all proportion.
Q. Do you offer Student Work Placement Insurance?
A. Yes. We agree to include in the Employee Definition up to 100 work experience students in a twelve month period who obtain practical work experience with the named insured as part of the academic accreditation of a university, college or advanced education or a TAFE but then only in respect of work for, or on behalf of, and under the supervision of the Named insured.
Q. Does my PI/PL policy cover me for any work I do overseas?
A. Usually these policies are Australian based only but policies may be able to be extended to NZ.
RTO Insurance Group can be contacted on 1300 137 389 to discuss this or other features of the RTO Insurance Policies.
