We've got you covered
There are risks associated with being an HR professional. Recent legislative changes opened up the options leading to the personal liability of individual HR practitioners found to have breached the law. In response to this, AHRI launched AHRI ProCover, a professional indemnity master policy for professional members.
We partnered with Austbrokers Countrywide to bring you a professional indemnity insurance policy that will keep you covered when you need it. AHRI ProCover protects you from risks as an employee where your employer may not protect you, or you may be held personally liable.
In most cases, financial AHRI professional members are automatically covered. (See below for exclusions)
If you’re not an AHRI professional member but would like to enjoy the peace of mind that AHRI ProCover brings, become a member.
Who is protected by AHRI ProCover?
- All financial AHRI professional members: MAHRI, CAHRI, CPHR, FAHRI, FCPHR or Life Fellow*
- Employee members exposed to litigation with no cover from their employer or are personally named in a legal action relating to their HR activities All consultants (small business owners) who are financial AHRI members and generate gross fees of up to $150,000 annually from HR related consultancy advice services
- All consultants (small business owners) who are financial AHRI members and generate gross fees of up to $150,000 annually from HR related consultancy advice services
*Associate (Full, Student or Graduate) members are not covered by AHRI ProCover and may upgrade their membership level if working in an HR function. Upgrade now. Retired members are also not covered as part of their discounted rate.
Renewing your AHRI membership
Ensure that you continue to be covered by AHRI ProCover by renewing your AHRI professional membership before the payment due date. If payment for your AHRI membership renewal is not received by the due date, you will be considered a non-financial member and you will no longer be covered under the AHRI ProCover for current or past incidents.
For general information on AHRI ProCover or to check your membership status or level please call 1300 811 880 to speak to a AHRI Membership Support or contact us.
Your Certificate of Currency and Policy Outline Documents
If you are already a qualifying AHRI member you can find your Certificate of Currency as evidence of your cover under the AHRI ProCover policy and your policy coverage outline document from within your AHRI Profile via the “Pro-Cover” tab
Contact Austbrokers Countrywide directly on 1800 245 123 for specific policy details or assistance with any of the following:
- Learn about exclusive discounts for AHRI consultant members with business income in excess of $150,000 (gross) per annum, and get an obligation-free quotation
- Discuss other insurance options including public liability, particularly for AHRI members who undertake broader business activities beyond HR
There are two recent cases where this insurance policy would have offered significant protection to an HR professional, had they been an AHRI member:
- Centennial Financial Services case: An employee HR manager was personally sued for sham contracting breaches of the Fair Work Act. Had the individual been protected by AHRI ProCover the member would have had access to expert legal advisers and up to $1,000,000 in legal defence costs as well as access to $250,000 fines and penalties cover
- Sika case An employee human resources manager was personally sued as an individual for having breached the freedom of association provisions in the Act. Similarly, AHRI ProCover would have extended legal defence costs up to $1,000,000 and fines and penalties cover up to $250,000.
Recent legislation in areas such as workplace relations and OHS expressly provides for the personal liability of individual HR employees found to have breached the law (e.g. section 550 of the Fair Work Act).
The former Fair Work Ombudsman Nicholas Wilson stated: “My agency has the power to prosecute individuals who are involved in contraventions of workplace relations laws. This means executives and managers, and the organisations they work for, can be held accountable for failures to provide employees with their full lawful entitlements” (HRMonthly, August 2011).
In addition, the courts have increasingly been putting individual HR managers on notice. When federal magistrate, Michael Lloyd-Jones, found against an HR manager in the Sika case, he said: “This court unfortunately sees too many instances similar to the matters in this case… inappropriately and incompetently approached by persons who parade under the banner of human resources specialists”.
The policy covers the liability of financial AHRI professional members arising from HR activities undertaken in the course of their work when they are acting in a professional capacity as an employee or a consultant.
The policy does not cover activities undertaken outside the area of HR practice, such as general management consulting, financial advice or marketing advice. Enquiries about professional activities unrelated to HR practice need to be referred to AHRI’s insurance agent Austbrokers Countrywide for assessment of your broader professional insurance coverage.
AHRI ProCover provides worldwide territorial cover, which means that HR activities that are the subject of a claim can be undertaken anywhere in the world. However, jurisdictional cover is limited to Australia and New Zealand, so to trigger a claim it must first be brought in an Australian or New Zealand court.
The policy does not provide any cover where the actions of an AHRI professional member are proven to be intentional, deliberate, wilful or reckless, including but not limited to:
- Intentional defamation
- Intentional infringement of intellectual property
- Wilful breach of a statute or contract
- Criminal acts
Where an activity is found to fall into one of the excluded areas of cover, you are not required to repay the costs of any legal advice provided under the cover up to that point. Please note that for each and every claim made, an excess of $1,000 is payable by the AHRI member, exclusive of costs and expenses.
If you have a professional indemnity policy via an existing AHRI facility this will not immediately be replaced by AHRI ProCover. At renewal, you will be contacted by Austbrokers Countrywide and, if you agree, be transitioned into the AHRI ProCover policy at no cost where you fit under the $150,000 cap.
If you have professional indemnity insurance elsewhere, contact Austbrokers Countrywide to check that the AHRI ProCover policy offers all of the protection of your existing policy and, if so, arrange transition into the AHRI ProCover facility.
Contact Austbrokers Countrywide and provide your name and AHRI membership number, to obtain a certificate of insurance as proof of insurance cover.
Yes, as long as the annual gross fees generated by your business do not exceed $150,000. If the annual fees are less than $150,000 the individual and the company are covered by AHRI ProCover.
AHRI ProCover is free and is an automatic benefit of your AHRI professional membership, which means you do not have to pay additional membership fees for the benefit of insurance coverage. AHRI’s size and scale enables it to use buying power to secure a favourable deal for its members. This service is an example of AHRI continually seeking ways to offer additional products and services that are exclusively beneficial to its members.
You will no longer have cover under the policy if you let your AHRI membership lapse. AHRI ProCover only provides protection to financial professional members of AHRI. If you fail to renew your membership on time, the cover ceases.
Please bear in mind that if you require a professional indemnity policy to continue to cover past HR activities, you need to keep renewing your membership to ensure the cover remains in place. AHRI professional membership is a cost effective way of keeping you covered compared with the cost of a standard professional indemnity insurance policy.
CGU Insurance Limited is the insurer, one of Australia’s largest insurance companies. Austbrokers Countrywide administers this policy on AHRI’s behalf and will be providing advice. Austbrokers Countrywide holds Australian Financial Services Licence No. 244436 under the Corporations Act 2001 to provide general insurance broking services.
DISCLAIMER: The AHRI Professional Indemnity Master Policy (AHRI ProCover) is exclusively available to current financial AHRI professional members: registered Graduate Member, Professional Member MAHRI, Professional Member CAHRI, Fellow FAHRI, Certified Practitioner CPHR and Fellow Certified Practitioner FCPHR or Life Fellow. Affiliate and student members are not covered by this policy and should seek to upgrade if working in an HR function. AHRI ProCover is underwritten by Pacific Indemnity Underwriting Solutions Pty Ltd ACN 606 511 639 – on behalf of CGU Insurance Limited ABN 27 004 478 371 via Austbrokers Countrywide. Austbrokers Countrywide holds Australian Financial Services Licence No. 244436 under the Corporations Act 2001 to provide General Insurance Broking Services.