It is so important to be diligent. Make sure you have the correct Entity Name noted as the Insured Name on your insurance policy, and you have the correct Entity Name used on your contracts. It is so easy to forget to note an entity or call it by the wrong name, however remember it is only a named insured that is entitled to make a claim under the policy. If your insured name is not correct it could hinder the claim being lodged with the insurer or could leave you uninsured.
When listing your Insured name on an insurance proposal form you should stop and think if these details are correct. If you have more than one legal entity it can be difficult, however you will need to list all on your insurance policy.
The insured name should reflect your registered ABN details and it might be necessary for you to refer to your Accountant to clarify all your registered business names. The ABN lookup tool is also available https://abr.business.gov.au/
It is also imperative that this correct name be listed on the contracts you enter into with your clients. In the event that an action is brought against you, you will need to provide to the insurer a copy of the contract documentation and they will review the names on the contract to check if they match the names on the insurance policy. If these names do not mirror each other this could result in delays in the Insurer notifying the matter. Any staff involved in creating contract documentation, invoices, letters etc should be aware of the correct legal names of the business and periodic audits should occur to check all is in order.
Any time you change your name or create a new entity, you need to update your insurance policies to reflect this change. If you close down an entity you should keep this name listed on your Professional Indemnity insurance policy in case a matter is brought against this company in the future.
If you are in partnership both names should be listed along with your trading name.
Please contact your Planned Cover broker if you have any questions.
State Manager QLD & NT