Introducing AHRI ProCover, an insurance safety net.
When we think about risk, most of us go one of two ways: we think prevention or insurance. That goes for down-to-earth types like me – and probably you – but it’s also true for more heroic types.
A circus trapeze artist might fit the definition of a high-risk performer at the heroic end of the scale. In taking the prevention course, such as a performer engages in regular practice and checks equipment. If all of that professional preparation fails, a safety net is the last resort.
The idea is that the net never gets used, but it’s there – just in case. That’s insurance.
Many, if not most, trapeze artists opt for both: preparation and a safety net. That’s exactly the approach we’ve taken at AHRI with respect to the professional practice of our members, and why we introduced an insurance policy as a safety net for members who might find themselves in trouble.
We call the policy AHRI ProCover, and it offers all current professional members protection. Our insurer recently reported a successful AHRI member claim under ProCover. Sensitivities prevent me from naming any of the parties, but the facts are worth passing on.
The claimant had been employed as an HR practitioner with a large corporation and had resigned. The company was engaged in a significant restructure at the time. As soon as the member departed, the former employer alleged breach of confidentiality by way of releasing trade secrets and information about the restructure to employees. The allegations amounted to breaches of the Corporations Act relating to improper and dishonest conduct in both the civil and criminal jurisdictions.
The member strongly denied the allegations, incurred legal expenses defending them, and was subsequently alerted to the AHRI ProCover protection.
The insurer reviewed the circumstances of the member’s claim and the legal fees paid, which amounted to some thousands of dollars, and reimbursed the member for the amount of the fees that the insurer would have paid had the insurer managed the case itself from the outset.
In reporting this case to you, I would simply comment that members caught in such a situation do not need to find the money to engage a lawyer themselves. By approaching the insurer immediately, they enjoy a protection that includes upfront payment of legal fees and an assurance of confidentiality if the case does not come before an open court.
Like our trapeze artist, the safety net is there for AHRI professional members – just in case.