12879 Z1487TP POL - AXA Connect

COMMERCIAL COMBINEDYour Policy Terms and ConditionsMay 2006 Edition

12879_Z1487TP_POL.qxd 22/5/06 12:07 pm

WELCOME TO AXA

2

Introducing AXA

One of the world’s largest insurersWith more than 50 million customers across the globe, AXA is one of the world’slargest financial services providers. We have a presence in over 50 countries,yet we pride ourselves on having a real understanding of local issues.

Care, guidance & support – when you need itAs one of the world leaders in financial protection and wealth management, weoffer a wide range of insurance and financial products to meet your businessand personal needs. Our commitment is to deliver our products with consistentcare, guidance and support as and when you need it.

We employ 117,000 people worldwide, and are also one of the thirty largestcompanies of any kind (Fortune magazine’s Global 500 for 2003).

AXA provides products that help people to get the best out of life. Our productsand services include: Business Insurance, Home and Motor Insurance,Investments, Life Assurance, Retirement Planning, Long Term Care, Asset Management, Medical Insurance and Dental Payment Plans.

AXA Insurance UK plc is authorised and regulated by the Financial ServicesAuthority. This can be checked on the FSA's website at www.fsa.gov.uk/registeror by contacting them on 0845 606 1234.

12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

3

CONTENTS

Contents

• Your Policy 4

• General Conditions 5

• Making Yourself Heard 9

• Material Damage 11

• Business Interruption 29

• Theft 51

• Money 60

• Employers Liability 67

• Public and Product Liability 72

• Selected All Risks 84

• Goods in Transit – Sendings 89

• Goods in Transit – Own Goods 95

• Public Liability – Building and Allied Trades 101

• Contractors All Risks 109

• Theft by Employees 117

• Legal Expenses 121

• Terrorism 135

• Computer Insurance 137

• Sudden and Unforseen Damage 152

12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

4

YOUR POLICY

Your Policy

The Company in consideration of the payment of the premium shallprovide insurance against loss destruction damage or liability forinjury or damage occurring at any time during the Period ofInsurance (or any subsequent period for which the Companyaccepts a renewal premium) in accordance with the Sections of thePolicy shown as operative in the Schedule subject to the exclusionsprovisions and conditions of the Policy

The Policy and the Schedule should be read together as onecontract and the Proposal/Statement of Fact made by the Insured isthe basis of the contract

Important

We recommend that You read this Policy inconjunction with Your Schedule to ensurethat it meets with Your requirements ShouldYou have any queries please contact Us orYour Insurance Adviser Your attention isdrawn to the Complaints Procedure on page 9

The law applicable to this Policy

You are free to choose the law applicable tothis Policy Your Policy will be governed bythe law of England and Wales unless Youand We have agreed otherwise

Definitions

The following words will have the samemeanings wherever they appear in the Policyor Schedule

AXA Insurance/We/Company/Our/UsAXA Insurance UK plc

Insured/You/Your(s)/YourselfThe person(s) or company named in the Schedule

12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

5

GENERAL CONDITIONS

General Conditions

1 Policy Voidable This Policy shall be voidable in the event of misrepresentation misdescription or non-disclosure in any material particular

2 AlterationThis Policy shall be avoided with respect toany item thereof in regard to which there beany alteration after the commencement ofthis insurance

a) by removal or

b) whereby the risk of loss or damage isincreased or

c) whereby the interest of the Insuredceases except by will or operation of law

unless admitted to the Company in writing

3 Claims Conditions1) In the event of any loss destruction or

damage or event likely to give rise to aclaim under this Policy the Insured shall

a) notify the Company immediately

b) notify the Police Authority immediatelyif it becomes evident that any loss ordamage has been caused by theft ormalicious persons

c) carry out and permit to be taken anyaction which may be reasonablypracticable to prevent further lossdestruction or damage

d) deliver to the Company at the Insureds expense

i) full information in writing of theproperty lost destroyed or damagedand of the amount of lossdestruction or damage

ii) details of any other insurances onany property hereby insured within30 days after such loss destructionor damage or such further time asthe Company may allow

iii) all such proofs and informationrelating to the claim as may bereasonably required

iv) if demanded a statutory declarationof the truth of the claim and of anymatters connected with it

2) No claim under this Policy shall bepayable unless the terms of this conditionhave been complied with

12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

6

GENERAL CONDITIONS

4 FraudIf a claim is fraudulent in any respect or iffraudulent means are used by the Insured or by anyone acting on their behalf to obtainany benefit under this Policy or if anydestruction loss or damage is caused by the wilful act or with the connivance of theInsured all benefit under this Policy shall be forfeited

5 ReinstatementIf any property is to be reinstated or replacedby the Company the Insured shall at theirown expense provide all such plansdocuments books and information as mayreasonably be required The Company shallnot be bound to reinstate exactly but only ascircumstances permit and in a reasonablysufficient manner and shall not in any casebe bound to expend in respect of any one ofthe items insured more than its Sum Insured

6 Reasonable PrecautionsThe Insured shall take all reasonableprecautions to prevent the loss destruction or damage

7 The Companys rights following a claim

On the happening of any loss destruction ordamage in respect of which a claim is madethe Company and any person authorised bythe Company may without thereby incurringany liability or diminishing any of theCompanys rights under this Policy enter takeor keep possession of the premises wheresuch loss destruction or damage hasoccurred and take possession of or requireto be delivered to the Company any propertyinsured and deal with such property for allreasonable purposes and in any reasonablemanner No claim under this Policy shall bepayable unless the terms of this conditionhave been complied with No property maybe abandoned to the Company whethertaken possession of by the Company or not

8 Contribution and AverageIf at the time of any loss destruction ordamage there is any other insuranceeffected by or on behalf of the Insuredcovering any of the property lost destroyedor damaged the liability of the Companyhereunder shall be limited to its rateableproportion of such loss destruction ordamage If any such other insurance shall besubject to any average condition this Policy ifnot already subject to any such condition of average shall be subject to average in like manner

If any such other insurance is subject to anyprovision whereby it is excluded from rankingconcurrently with this Policy either in wholeor in part or from contributing rateably theliability of the Company under this Policyshall be limited to that proportion of the lossdestruction or damage which the SumInsured under this Policy bears to the valueof the property

9 SubrogationAny claimant under this Policy shall at therequest and expense of the Company takeand permit to be taken all necessary stepsfor enforcing rights against any other party inthe name of the Insured before or after anypayment is made by the Company

10 CancellationOur Rights

We shall not be bound to accept any renewalof this Policy and may at any time give 21days notice of cancellation by recordeddelivery to Your last known addressThereupon You shall be entitled to the returnof a proportionate part of the premium paidin respect of the unexpired term of this Policyprovided that there have been

• no claims made under the Policy forwhich We have made a payment

• no claims made under the Policy whichare still under consideration

• no incidents likely to give rise to a claimbut are yet to be reported to Us

12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

7

GENERAL CONDITIONS

during the current Period of Insurance

This termination will be without prejudice toany rights or claims of the Insured or theCompany prior to the expiration of such notice

If a claim has been submitted or there hasbeen any incident likely to give rise to aclaim during the current Period of Insurance,no refund for the unexpired portion of thepremium will be given

Your Rights

You may cancel this Policy in the first year ofinsurance during the 14 days after theContract has been concluded by givingnotice in writing to Your Insurance Adviser atthe address shown in their correspondenceor to the AXA Insurance address shown onYour Policy schedule This right does notapply at the first or any subsequentrenewal of the Policy

Provided that there have been

• no claims made under the Policy forwhich We have made a payment

• no claims made under the Policy whichare still under consideration

• no incidents likely to give rise to a claimbut are yet to be reported to Us

during this 14 day period, We will give arefund for the proportionate part of thepremium paid in respect of the unexpiredterm of this Policy, subject to a minimumpremium of £50

If a claim has been submitted or there hasbeen any incident likely to give rise to aclaim during the current Period of Insurance,no refund for the unexpired portion of thepremium will be given

11 InstalmentsIf the premium on this Policy is payable bythe Company’s Budget Plan and You do notpay each instalment on the due date allcover under the Policy is cancelledautomatically from the date such instalmentwas due or where statute requires the givingof prior notice the day following the expiry ofsuch notice

If the premium on this Policy is payable bythe Company’s Budget Plan and during thecurrent Period of Insurance

• a claim has been made under the Policyfor which We have made a payment

• a claim has been made under the policywhich is still under consideration

• an incident has occurred which is likely togive rise to a claim but is yet to bereported to Us

the annual premium remains due in full Insuch case monthly collections must continueor a one off payment be agreed to settle theoutstanding amount

Where a one off payment is not made tosettle the outstanding amount You mustcontinue with the instalment paymentsAlternatively We may deduct any outstandinginstalments from any claim payment thatmay be due to You or payable on Your behalf

Any instalments payments legitimately takenprior to the notification of cancellation of theBudget Plan agreement will be retained Anyrefund of premium will be in respect of anysubsequent collections taken between thetime of notification and cancellation

12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

8

12 ProceedingsThe Insured shall not except at their owncost negotiate pay settle admit or repudiateany claim without the written consent of theCompany The Company shall be entitled toundertake in the name and on behalf of theInsured the absolute conduct and control ofany proceedings and any settlement of thesame The Insured shall render to theCompany all necessary information andassistance to enable the Company to settleor resist any claim or to institute proceedings

13 WarrantiesEvery warranty to which this Policy or anyitem thereof is or may be made subject shallfrom the time the warranty attaches applyand continue to be in force during the wholecurrency of this Policy Non-compliance withany such warranty in so far as it increasesthe risk of loss destruction or damage shallbe a bar to any claim in respect of such lossdestruction or damage provided thatwhenever this Policy is renewed a claim inrespect of loss destruction or damageoccurring during the renewal period shall notbe barred by reason of a warranty not havingbeen complied with at any time before thecommencement of such period

14 Arbitration If any difference arises as to the amount tobe paid under this Policy (liability beingotherwise admitted) such difference shall bereferred to an arbitrator to be appointed bythe parties in accordance with statutoryprovisions Where any difference is by thiscondition to be referred to arbitration themaking of any award shall be a conditionprecedent to any right of action against the Company

15 Condition PrecedentIt is a condition precedent to any liability onthe part of the Company under this Policythat a) the terms hereof so far as they relateto anything to be done or complied with bythe Insured are duly and faithfully observedand fulfilled by the Insured and by any otherperson who may be entitled to beindemnified under this Policy b) thestatements made and the answers given inthe proposal herein before referred to aretrue and complete

GENERAL CONDITIONS

12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

9

MAKING YOURSELF HEARD

Making Yourself Heard

If You have cause for complaint, it is important You know We arecommitted to providing You with an exceptional level of service andcustomer care.

We realise that things can go wrong and there may be occasionswhen You feel that We have not provided the service You expected.When this happens We want to hear about it so We can try to putthings right.

Who to contact?

The most important factors in getting Yourcomplaint dealt with as quickly and efficientlyas possible are:

• to be sure You are talking to the rightperson, and;

• that You are giving them the rightinformation.

When You contact Us

• Please give Us Your name and a contacttelephone number.

• Please quote Your Policy and/or claimnumber, and the type of Policy You hold.

• Please explain clearly and concisely thereason for Your complaint.

So We begin by establishing Your first pointof contact.

Step One - Initiating Your complaint

Does Your complaint relate to:

A: Your Policy?

B: a claim on Your Policy?

If A, You need to contact the agent or AXAoffice who sold You Your Policy. Call thenumber on Your Policy document and stateYour complaint.

If B, You need to contact whoever is currently dealing with Your claim and stateYour complaint.

In either case, if You wish to provide writtendetails, the following checklist has beenprepared for You to use when drafting Your letter:

• Head Your letter ‘COMPLAINT’.

• Give Your full name, postcode andcontact telephone number(s).

• Quote the type of Policy and Your Policyand /or claim number.

• Advise the name of Your insuranceagent/firm (if applicable).

• Explain clearly and concisely thereason(s) for Your complaint.

The letter should be sent to the persondealing with Your complaint along with anyother material required.

We expect that the majority of complaints willhave been quickly and satisfactorily resolvedat this stage, but if You are not satisfied, Youcan take the issue further:

12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

10

Step Two - If You are still unhappy

Should the response You receive beunsatisfactory please refer the matter usingthe relevant details below:

Does Your complaint relate to:

A: Your Policy?

B: a claim on Your Policy?

If A, ask to speak to the Branch Manager.Where they cannot assist they will ensureYou are put into contact with the person whocan resolve Your complaint.

If B, please contact the relevant ClaimsOffice, details of which You will havereceived following notifying Us of Your claim.

Step Three - Contacting AXA Insurance Head Office

If Your complaint is one of the few thatcannot be resolved by this stage contact the Head of Customer Care who will arrangefor an investigation on behalf of the Chief Executive:

Head of Customer Care AXA InsuranceCivic DriveIpswichSuffolk IP1 2AN

Tel: 01473 205926Fax: 01473 205101email: [email protected]

Step Four - Beyond AXA

If We have given You Our final response andYou are still dissatisfied You may refer Yourcase to the Financial Ombudsman Service(FOS). The FOS in an independent body thatarbitrates on complaints about generalinsurance products. It will only considercomplaints if:

• We have provided You with writtenconfirmation that Our internal complaintsprocedure has been exhausted.

• Your business has a turnover of less than£1,000,000.

The FOS can be contacted at:

Financial Ombudsman Service South Quay Plaza 183 Marsh WallLondon E14 9SR

Tel: 0845 080 1800 Fax: 020 7964 1001

Referral to the FOS will not affect Your rightto take legal action against Us.

Our promise to You

• Acknowledge written complaints promptly.

• Investigate quickly and thoroughly.

• Keep You informed of progress.

• Do everything possible to resolve Your complaint.

• Learn from Our mistakes.

• Use the information from complaints tocontinuously improve Our service.

To help us improve our service, we mayrecord or monitor telephone calls.

MAKING YOURSELF HEARDMAKING YOURSELF HEARD

12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

1. Definitions

Wherever the following words and phrasesappear in this Section they will always havethese meanings -

Standard ConstructionBrick stone or concrete built and roofed withslates tiles metal concrete asphalt or sheetsor slabs composed entirely of incombustiblemineral ingredients and plastic rooflights

Non Standard ConstructionConstructed of materials other than those detailed in the definition Standard Construction

2. Property Insured

Column 1 – The building(s) includinglandlords fixtures and fittingstherein and thereonoutbuildings walls gates andfences yards car parks andpavements piping ductingcables wires and associatedcontrol gear and accessories on the premises andextending to the public mainsbut only to the extent of the Insureds responsibility

Column 2 – Contents therein and thereon the property of theInsured or held by them intrust for which they areresponsible excludinglandlords fixtures and fittingsand stock and materials in

trade and vehicles licencedfor road use (andaccessories thereon)

Column 3 – Stock and materials in tradetherein and thereon theproperty of the Insured orheld by them in trust forwhich they are responsible

Column 4 – Miscellaneous and on property as specified in thedescription column

3. Plan References

Plan references (if any) refer to plans and reports of the premises lodged with AXA Insurance

4. Construction of Buildings

Except as otherwise stated the buildingsdescribed in the Schedule are of Standard Construction

5. Changes in Tenancy

The Insured must advise AXA Insurance ofall changes in tenancy or occupation withinthe premises in accordance with GeneralCondition 2 of this Policy

Property Memoranda

Only applicable if this Section is shown as operative in the Schedule

MATERIAL DAMAGE SECTION

1111

12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

12

MATERIAL DAMAGE

6. Architects Surveyors Legal and Consulting Engineers Fees Clause

The insurance by each item under Columns1 and 2 includes an amount in respect ofarchitects surveyors legal and consultingengineers fees necessarily incurred in thereinstatement or repair of the PropertyInsured consequent upon its DAMAGE butnot for preparing any claim it beingunderstood that the amount payable under the item shall not exceed in total its sum insured

7. Average Clause

The sum insured by each item of this Section(other than those applying solely to fees rentor removal of debris) is declared to beseparately subject to Average i.e. if suchsum shall at the commencement of anyDAMAGE be less than the value of theproperty covered within such sum insuredthe amount payable by the Company inrespect of such DAMAGE shall beproportionately reduced

Exceptions:

a) a private dwelling house or householdgoods and personal effects

b) a building used mainly for public religious worship or for activities inconnection therewith

c) agricultural produce on a farm in GreatBritain which will be subject to the SpecialCondition of Average

d) any item subject to the Two Conditions of Average

e) any item subject to the Day One Average Memorandum

8. Capital Additions Clause

The insurance by this Section shall subjectto its terms and conditions extend to cover

a) any newly acquired and/or newly erectedbuildings or buildings in course of erection(excluding any property for which abuilding contractor is responsible)machinery and plant in so far as the sameare not otherwise insured

and

b) alterations additions and improvements tobuildings machinery and plant but not inrespect of any appreciation in value

anywhere in the United Kingdom provided that

i) at any one situation this cover shallnot exceed 10% of the sum insured byColumns 1 and 2

ii) the Insured undertake to giveparticulars of such extension of cover as soon as practicable and to effect specific insurance thereonretrospective to the date of thecommencement of the Companys liability

iii) the provisions of this extension shall be fully maintained notwithstanding any specific insurance effected under ii) above

9. Contents Clause

It is agreed that the term contents isunderstood to include in so far as they arenot otherwise insured -

a) money and stamps (including NationalInsurance stamps) for an amount notexceeding £500

b) documents manuscripts and businessbooks but only for the cost of thematerials and clerical labour expended inreproducing such records (excluding anyexpense in connection with the productionof information to be recorded therein)

12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

13

MATERIAL DAMAGE

c) computer systems records but only for thecost of the materials and clerical labourand computer time expended inreproducing such records (excluding anyexpense in connection with the productionof information to be recorded therein)

d) patterns models moulds plans anddesigns for an amount not exceeding thecost of the labour and materials expendedin reinstatement

e) contents of outbuildings

f) contents of open yards

g) tenants improvements alterations and decorations

h) directors partners customers visitors andemployees personal effects of everydescription (other than motor vehicles andmoney) for an amount not exceeding£500 in respect of any one person

10. Contract Price Clause

In respect only of goods sold but notdelivered for which the Insured areresponsible subject to a sale contract whichfollowing DAMAGE is cancelled by reason ofits conditions wholly or to the extent of theDAMAGE the liability of the Company shallbe based on the contract price For thepurpose of this insurance the value of allgoods to which this clause could apply in theevent of DAMAGE shall also be ascertainedon this basis

11. Debris Removal Clause

The insurance by each item of this Sectionextends to include costs and expensesnecessarily incurred by the Insured with theconsent of the Company in -

a) removing debris

b) dismantling and/or demolishing

c) shoring up or propping

of the portion or portions of the PropertyInsured as a result of DAMAGE herebyinsured against

The Company shall not pay for any costs orexpenses

i) incurred in removing debris exceptfrom the site of such propertydestroyed or damaged and the areaimmediately adjacent to the site

ii) arising from pollution or contaminationof property not insured by this Section

The liability of the Company under thisextension and this Section in respect of any item shall in no case exceed the suminsured thereby

12. Designation Clause

For the purpose of determining wherenecessary the heading under which anyproperty is insured the Company agrees to accept the designation under which such property has been entered in the Insureds books

13. Exhibition Clause

The insurance by any item on stock andmaterials in trade extends to cover theproperty described thereby for a period notexceeding 15 days whilst at any exhibition inGreat Britain and Northern Ireland Theliability of the Company under this extensionshall not exceed 10% of the sum insured bysaid item

14. Fire-Break Doors and Shutters Clause

It is warranted that all fireproof doors andshutters be kept closed except during working hours and be maintained in efficientworking order

13

12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

14

MATERIAL DAMAGE

15. Fire Extinguishing Appliances Clause

Where the Company has agreed to allow adiscount for fire extinguishing appliances theInsured warrant that the said appliances willbe maintained in efficient working orderduring the currency of the insurance

16. Inflation Protection Clause

The Company will adjust the sum insured inline with suitable indices of costs and therenewal premium for this Section will bebased on the adjusted Sum Insured

17. Mortgagees Clause

The act or neglect of any mortgagor oroccupier of any building hereby insuredwhereby the risk of DAMAGE is increasedwithout the authority or knowledge of anymortgagee shall not prejudice the interestof the latter party (or parties) in thisinsurance provided they shall notify AXAInsurance immediately on becoming awareof such increased risk and pay additionalpremium if required

18. Non Invalidation Clause

This insurance shall not be invalidated byany act or omission or by an alterationwhereby the risk of DAMAGE is increasedunknown to or beyond the control of theInsured provided that the Insuredimmediately they become aware thereofshall give notice to AXA Insurance and payan additional premium if required

19. Notice Clause

AXA Insurance UK plc must be notified inwriting immediately any empty building orempty portion of a building insured herebybecome(s) occupied or any occupiedbuilding becomes empty and the Insuredundertake to pay an additional premium if required

20. European Community andPublic Authorities (includingUndamaged Property) Clause

Subject to the following special conditionsthe insurance by Columns 1 and 2 of thisSection extends to include such additionalcost of reinstatement as may be incurredsolely by reason of the necessity to complywith the Stipulations of

a) European Community Legislation or

b) Building or other Regulations under orframed in pursuance of any Act ofParliament or Bye-laws of any PublicAuthority (hereafter referred to as theStipulations) in respect of

– the lost destroyed or damagedproperty thereby insured

– undamaged portions thereof

Excluding

a) the cost incurred in complying with theStipulations:

i) in respect of DAMAGE occurringprior to the granting of thisExtension

ii) in respect of DAMAGE not insuredby this Section

iii) under which notice has beenserved upon the Insured prior tothe happening of the DAMAGE

iv) for which there is an existingrequirement which has to beimplemented within a given period

v) in respect of property entirelyundamaged by any peril herebyinsured against

b) the additional cost that would havebeen required to make good theproperty lost destroyed or damagedto a condition equal to its conditionwhen new had the necessity to complywith the Stipulations not arisen

12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

15

MATERIAL DAMAGE

c) the amount of any charge orassessment arising out of capitalappreciation which may be payable inrespect of the property or by the ownerthereof by reason of compliance withthe Stipulations

Special Conditions1) The work of reinstatement must be

commenced and carried out withoutunreasonable delay and in any case mustbe completed within twelve months afterthe DAMAGE or within such further timeas the Company may allow (during thesaid twelve months) and may be carriedout upon another site (if the Stipulationsso necessitate) subject to the liability ofthe Company under this extension notbeing thereby increased

2) If the liability of the Company under (anyitem of) this Section apart from thisextension shall be reduced by theapplication of any of the terms andconditions of the Policy then the liability ofthe Company under the extension (inrespect of any such item) shall bereduced in like proportion

3) The total amount recoverable under anyitem of this Section in respect of thisextension shall not exceed

a) in respect of the lost destroyed ordamaged property

i) 15% of its sum insured

ii) where the sum insured by the itemapplies to property at more thanone premises 15% of the totalamount for which the Companywould have been liable had theproperty insured by the item at thepremises where the DAMAGE hasoccurred been wholly destroyed

b) in respect of undamaged portions ofproperty (other than foundations) 15%of the total amount for which theCompany would have been liable had

the property insured by the item at thepremises where the DAMAGE hasoccurred been wholly destroyed

4) The total amount recoverable under anyitem of this Section shall not exceed itssum insured

5) All the terms and conditions of the Policyexcept insofar as they are varied herebyshall apply as if they had beenincorporated herein

21. Reinstatement Clause

(N.B. not applicable to motor vehicles andtheir accessories personal effects or stockand materials in trade)

Subject to the following Special Conditionsthe basis upon which the amount payable inrespect of Property Insured under sumsinsured marked R on the Schedule is to becalculated shall be the reinstatement of theproperty lost destroyed or damaged

For this purpose Reinstatement means

a) the rebuilding or replacement of propertylost or destroyed which provided theliability of the Company is not increasedmay be carried out

i) in any manner suitable to the requirements of the Insured

ii) upon another site

b) the repair or restoration of property damaged

in either case to a condition equivalent to orsubstantially the same as but not better ormore extensive than its condition when new

Special Conditions1) The liability of the Company for the repair

or restoration of property damaged in partonly shall not exceed the amount whichwould have been payable had suchproperty been wholly destroyed

2) If at the time of reinstatement the sumrepresenting 85% of the cost which would

12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

16

MATERIAL DAMAGE

have been incurred in reinstating the wholeof the property covered by any item subjectto this memorandum exceeds its suminsured at the commencement of anyDAMAGE the liability of the Company shallnot exceed that proportion of the amount ofthe DAMAGE which the said sum insuredshall bear to the sum representing the totalcost of reinstating the whole of such propertyat that time

3) No payment beyond the amount whichwould have been payable in the absenceof this memorandum shall be made

a) unless reinstatement commences andproceeds without unreasonable delay

b) until the cost of reinstatement shallhave been actually incurred

c) if the Property Insured at the time ofits loss destruction or damage shall beinsured by any other insuranceeffected by or on behalf of the Insuredwhich is not upon the same basis ofreinstatement

4) All the terms and conditions of the Policyshall apply

a) in respect of any claim payable under the provisions of thismemorandum except in so far as they are varied hereby

b) where claims are payable as if this memorandum had not been incorporated

22. Reinstatement of Sum Insuredafter Loss Clause

In the event of loss the sum insured by thisSection will be automatically reinstated fromthe date of the loss unless written notice isgiven to the contrary either by AXAInsurance or by the Insured and the Insuredundertake to pay such necessary premiumsas may be required for such reinstatementfrom that date

23. Rent Clause

The insurance on rent applies only if (any of)the said building(s) or any part thereof isunfit for occupation in consequence of itsDAMAGE and then the amount payable shall not exceed such proportion of the suminsured on rent as the period necessary for reinstatement bears to the term of rent insured

24. Repairs and Alterations Clause

Joiners and other tradesmen may beemployed to effect repairs or minor structural alterations in all or any of thebuildings insured without prejudice to theinsurance hereby

25. Subrogation Waiver Clause

In the event of a claim arising under thisSection the Company agrees to waive anyrights remedies or relief to which they mighthave become entitled by subrogation against

a) any Company standing in relation ofParent to Subsidiary (Subsidiary toParent) to the Insured as defined in theCompanies Act or the Companies (N.I.)Order as appropriate current at the timeof the DAMAGE

b) any Company which is a subsidiary of aParent Company of which the Insured arethemselves a Subsidiary in each casewithin the meaning of the Companies Actor the Companies (N.I.) Order asappropriate current at the time of the DAMAGE

12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

17

MATERIAL DAMAGE

26. Temporary Removal Clause

a) The Property Insured by this Section(other than stock if insured) is coveredwhilst temporarily removed for cleaningrenovation repair or similar purposeselsewhere and in transit thereto andtherefrom all in Great Britain and NorthernIreland

b) The liability of the Company under thisextension in respect of each item of thisSection for any DAMAGE occurringelsewhere than at the within mentionedpremises shall not exceed 10% of thesum insured by the item

c) This extension does not apply to propertyin so far as it is otherwise insured nor asregards losses occurring elsewhere thanat the premises from which the property istemporarily removed to motor vehiclesand motor chassis licensed for normalroad use

d) All the terms and conditions of the Policyexcept in so far as they are varied herebyshall apply as if they had been incorporated herein

27. Temporary Removal ofDocuments Clause

The insurance of deeds and other documents(including stamps thereon) manuscripts plansand writings of every description computersystems records and books (written andprinted) extends to cover such property for anamount not exceeding 10% of the valuethereof whilst temporarily removed to anypremises not in the Insureds occupation andin transit all in Great Britain and NorthernIreland This extension does not apply toproperty insofar as it is otherwise insured

28. Transfer of Interest Clause

If at the time of DAMAGE the Insured shallhave contracted to sell their interest in anybuilding hereby insured and the purchaseshall not have been but shall be thereaftercompleted the purchaser on completion ofthe purchase (if and so far as the property isnot otherwise insured against such DAMAGEby him or on his behalf) shall be entitled tobenefit under this Section without prejudiceto the rights and liabilities of the Insured orthe Company until completion

12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

18

MATERIAL DAMAGE

Date Recognition Clause

This section does not cover

DAMAGE directly or indirectly caused by orcontributed to by or arising from the failure ofany computer or other equipment dataprocessing service product microchip microprocessor integrated circuit embedded chipor similar device computer software programor process or any other electronic system orany design or advice in connection with anyof the foregoing irrespective of ownershippossession or use and whether occurringbefore during or after the year 2000

i) correctly to recognise any date as itstrue calendar date

ii) to capture save or retain and/orcorrectly to manipulate interpret orprocess any data or information orcommand or instruction as a result oftreating any date otherwise than as itstrue calendar date

iii) to capture save or retain or correctly toprocess any data as a result of theoperation of any command which hasbeen programmed into any computersoftware being a command whichcauses the loss of data or the inabilityto capture save retain or correctly toprocess such data on or after any date

but this shall not exclude subsequentDAMAGE not otherwise excluded whichitself results from fire lightning explosionaircraft or other aerial devices or articlesdropped therefrom riot civil commotionstrikers locked out workers persons takingpart in labour disturbances maliciouspersons theft earthquake storm floodescape of water from any tank apparatusor pipe or impact by any road vehicle oranimal provided such contingency isinsured by this Section

Terrorism Exclusion Clause


Loss damage cost or expense of whatsoevernature directly or indirectly caused byresulting from or in connection with

1. any act of Terrorism regardless of anyother cause or event contributingconcurrently or in any other sequence tothe loss

2. any action taken in controlling preventingsuppressing or in any way relating to anyact of Terrorism

If the Company alleges that by reason ofthis exclusion any loss damage cost orexpense is not covered by this Section ofthe Policy the burden of proving thecontrary shall be upon the Insured

In the event any portion of this exclusionis found to be invalid or unenforceablethe remainder shall remain in full forceand effect

Definition - Terrorism

For the purpose of this exclusion an act ofTerrorism shall mean an act including but notlimited to the use of force or violence and orthreat thereof of any person or group(s) ofpersons whether acting alone or on behalf ofor in connection with any organisation(s) orgovernment(s) committed for politicalreligious ideological or similar purposesincluding the intention to influence anygovernment and or put the public or anysection of the public in fear

In respect of private house(s) or contentsthereof insured in the name of an individualthis Terrorism Exclusion only applies to lossdamage cost or expense caused by nuclearchemical or biological contaminationresulting directly or indirectly from terrorism

12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

19

MATERIAL DAMAGE

The Cover - Specified Perils

Only applicable to Items as shown in the Schedule

Indemnity

The Company agrees that if any of theProperty Insured described in the Schedulebe lost destroyed or damaged by any of theundernoted Perils which are shown as inforce in the Schedule the Company will paythe Insured the value of the property at thetime of its loss or destruction or the amountof the damage or at the Companys optionreinstate or replace such property or anypart of it

Provided that the liability of the Companyunder this Section shall not exceed

i) in the whole the total sum insured or inrespect of any item its sum insured at thetime of loss destruction or damage

ii) the sum insured remaining afterdeduction for any other loss destruction or damage occurring during the sameperiod of insurance unless the Companyshall have agreed to reinstate any suchsum insured

adjusted in accordance with the InflationProtection Clause if applicable

This Section incorporates the schedulememoranda and endorsements which shallbe read together as one contract Words andexpressions to which specific meaning isgiven in any part of this Section shall havethe same meaning wherever they appear

Additional Definition

The word DAMAGE in capital letters shallmean loss destruction of or damage to theProperty Insured

Perils

A FIRE but excluding DAMAGE caused by

a) explosion resulting from fire

b) earthquake or subterranean fire

c) i) its own spontaneous fermentationor heating or

ii) its undergoing any heating processor any process involving theapplication of heat

LIGHTNING

EXPLOSION

a) of boilers

b) of gas

used for domestic purposes only butexcluding DAMAGE caused byearthquake or subterranean fire

B EXPLOSION excluding DAMAGE

a) caused by or consisting of the burstingof a boiler economiser or other vesselmachine or apparatus in which internalpressure is due to steam only andbelonging to or under the control of the Insured

b) in respect of and originating in anyvessel machinery or apparatus or itscontents belonging to or under thecontrol of the Insured which requiresto be examined to comply with anyStatutory Regulations unless suchvessel machinery or apparatus shallbe the subject of a policy or othercontract providing the requiredinspection service

c) by pressure waves caused by aircraftor other aerial devices travelling atsonic or supersonic speeds

12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

20

MATERIAL DAMAGE

C AIRCRAFT or other aerial devices orarticles dropped therefrom excludingDAMAGE by pressure waves caused byaircraft or other aerial devices travellingat sonic or supersonic speeds

D RIOT CIVIL COMMOTION STRIKERSLOCKED-OUT WORKERS or personstaking part in labour disturbances ormalicious persons acting on behalf of orin connection with any politicalorganisation excluding DAMAGE

a) arising from confiscation requisition ordestruction by order of thegovernment or any public authority

b) arising from cessation of work

E RIOT CIVIL COMMOTION STRIKERSLOCKED-OUT WORKERS or personstaking part in labour disturbances orMALICIOUS PERSONS excluding

a) DAMAGE arising from confiscationrequisition or destruction by order of the government or any public authority

b) DAMAGE arising from cessation of work

c) as regards DAMAGE (other than byfire or explosion) directly caused bymalicious persons not acting on behalf of or in connection with anypolitical organisation

i) DAMAGE by theft

ii) DAMAGE in respect of any buildingwhich is empty or not in use

iii) the first £300 of each and everyloss in respect of each separatepremises as ascertained after the application of any condition of Average

F EARTHQUAKE

G SUBTERRANEAN FIRE

H STORM excluding

a) DAMAGE by

i) the escape of water from thenormal confines of any natural orartificial water course lake reservoircanal or dam

ii) inundation from the sea

whether resulting from storm or otherwise

b) DAMAGE attributable solely to changein the water table level

c) DAMAGE by frost subsidence groundheave or landslip

d) DAMAGE in respect of movableproperty in the open fences and gates

e) the first £300 of each and every lossin respect of each separate premisesas ascertained after the application ofany condition of Average

I STORM OR FLOOD excluding

a) DAMAGE attributable solely to achange in the water table level

b) DAMAGE by frost subsidence groundheave or landslip

c) DAMAGE in respect of movableproperty in the open fences and gates

d) the first £300 of each and every lossin respect of each separate premisesas ascertained after the application ofany condition of Average

J ESCAPE OF WATER FROM ANY TANKAPPARATUS OR PIPE excluding

a) DAMAGE by water discharged orleaking from any automatic sprinkler installation

b) DAMAGE in respect of any buildingwhich is empty or not in use

c) the first £300 of each and every lossin respect of each separate premisesas ascertained after the application ofany condition of Average

12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

21

MATERIAL DAMAGE

K IMPACT by any road vehicle or animalnot belonging to or under the control ofthe Insured or any occupier of thepremises or their respective employees

L IMPACT by any road vehicle or animalexcluding in respect of road vehicles oranimals belonging to or under the controlof the Insured or any occupier of thepremises or their respective employeesthe first £300 of each and every loss inrespect of each separate premises asascertained after the application of anycondition of Average

M ACCIDENTAL ESCAPE OF WATERFROM ANY AUTOMATIC SPRINKLERINSTALLATION in the premises notcaused by

a) freezing whilst the building insofar asit is in the Insureds ownership ortenancy is empty or not in use

b) explosion earthquake subterraneanfire or heat caused by fire

N FIRE only resulting from the propertysown SPONTANEOUS FERMENTATIONOR HEATING

Exclusions

This Section does not cover1. DAMAGE occasioned by

a) riot or civil commotion unless theseperils are specified in the Scheduleand then only to the extent stated

b) war invasion act of foreign enemyhostilities (whether war be declared or not) civil war rebellion revolutioninsurrection or military or usurped power

2. loss or destruction of or damage to anyproperty whatsoever or any loss orexpense whatsoever resulting or arisingtherefrom or any consequential lossdirectly or indirectly caused by orcontributed to by or arising from

a) ionising radiations or contamination byradioactivity from any nuclear fuel orfrom any nuclear waste from thecombustion of nuclear fuel

b) the radioactive toxic explosive or otherhazardous properties of any explosivenuclear assembly or nuclearcomponent thereof

3. DAMAGE in Northern Ireland occasionedby or happening through or inconsequence directly or indirectly of

i) civil commotion

ii) TERRORISM as defined in theTerrorism Exclusion Clause

In any action suit or other proceedingswhere the Company alleges that byreason of this definition any DAMAGE isnot covered by this Section the burden ofproving that such DAMAGE is coveredshall be upon the Insured

4. loss or destruction or damage caused by pollution or contamination except(unless otherwise excluded) destruction of or damage to the Property Insuredcaused by

a) pollution or contamination which itself results from a peril herebyinsured against

b) any peril hereby insured against which itself results from pollution or contamination

12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

22

MATERIAL DAMAGE

5. property which at the time of thehappening of DAMAGE is insured by orwould but for the existence of this Sectionbe insured by any marine policy orpolicies except in respect of any excessbeyond the amount which would havebeen payable under the marine policy or policies had this insurance not been effected

6. any property more specifically insured byor on behalf of the Insured

7. consequential loss or damage of any kindor description except loss of rent whensuch loss is included in the cover underthis Section

8. DAMAGE to any electrical plant orapparatus caused by its own over-running short-circuiting excessivepressure or self-heating but shouldDAMAGE extend to and damage ordestroy any other part of the plant orapparatus or other Property Insuredhereby such DAMAGE is not excluded bythis Section

12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

23

MATERIAL DAMAGE

The Cover - All Risks


Indemnity

The Company agrees that if any of theProperty Insured described in the Schedulebe accidentally lost destroyed or damagedthe Company will pay the Insured the valueof the property at the time of its loss ordestruction or the amount of the damage orat the Companys option reinstate or replacesuch property or any part of it

Provided that the liability of the Companyunder this Section shall not exceed

i) in the whole the total sum insured or inrespect of any item its sum insured orany other limit of liability stated in theSchedule at the time of loss destructionor damage

ii) the sum insured (or limit) remaining afterdeduction for any other loss destructionor damage occurring during the sameperiod of insurance unless the Companyshall have agreed to reinstate any suchsum insured (or limit)


This Section incorporates the schedulememoranda and endorsements which shallbe read together as one contract Words andexpressions to which specific meaning isgiven in any part of this Section shall havethe same meaning wherever they appear

Additional Definitions

1. The word DAMAGE in capital letters shallmean accidental loss or destruction of ordamage to the Property Insured

2. The words Defined Peril shall mean firelightning explosion aircraft or other aerialdevices or articles dropped therefrom riotcivil commotion strikers locked-outworkers persons taking part in labourdisturbances malicious persons otherthan thieves earthquake storm floodescape of water from any tank apparatusor pipe or impact by any road vehicle or animal

Exclusions

This Section does not cover

1. the amount shown below after theapplication of the condition of Average in respect of

i) DAMAGE by fire lightning explosion aircraft riot civil commotion strikers locked-out workers persons taking part in labour disturbances or earthquake . . . . .£NIL

ii) all other DAMAGE . . . . . . . . . . .£300

2. DAMAGE caused by or consisting of

a) inherent vice latent defect gradualdeterioration wear and tear frostchange in water table level its own faulty or defective design or materials

b) The bursting by steam pressure of aboiler (not being a boiler used fordomestic purposes only) economiseror other vessel machine or apparatusin which internal pressure is due tosteam only and belonging to or underthe control of the Insured

c) pressure waves caused by aircraft orother aerial devices travelling at sonicor supersonic speeds

but this shall not exclude subsequentDAMAGE which itself results from acause not otherwise excluded


a) faulty or defective workmanshipoperational error or omission on the part of the Insured or any of his employees

but this shall not exclude

i) such DAMAGE not otherwiseexcluded which itself results from aDefined Peril

12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

24

MATERIAL DAMAGE

ii) subsequent DAMAGE which itself results from a cause not otherwise excluded

b) acts of fraud or dishonesty by theInsureds employees but this shall notexclude such DAMAGE not otherwise excluded which itself results from a Defined Peril


a) corrosion rust wet or dry rot shrinkageevaporation loss of weight dampnessdryness marring scratching vermin or insects

b) change in temperature colour flavourtexture or finish

c) theft or attempted theft

DAMAGE consisting of

d) joint leakage failure of welds cracking fracturing collapse oroverheating of boilers economiserssuper heaters pressure vessels or any range of steam and feed piping in connection therewith

e) mechanical or electrical breakdown or derangement in respect of theparticular machine apparatus orequipment in which such breakdownor derangement originates


i) such DAMAGE not otherwiseexcluded which itself results from a Defined Peril or from any otheraccidental loss destruction or damage

ii) subsequent DAMAGE which results from a cause not otherwise excluded

5. loss or destruction or damage caused bypollution or contamination but this shallnot exclude destruction of or damage tothe Property Insured not otherwiseexcluded caused by

a) pollution or contamination which itselfresults from a Defined Peril

b) a Defined Peril which itself resultsfrom pollution or contamination


a) subsidence ground heave or landslipunless resulting from fire explosionearthquake or the escape of waterfrom any tank apparatus or pipe

b) normal settlement or bedding down of new structures

c) disappearance unexplained orinventory shortage misfiling ormisplacing of information

7. destruction of or damage to a building or structure caused by its own collapse or cracking unless resulting from aDefined Peril insofar as it is not otherwise excluded

8. DAMAGE in respect of movable propertyin the open fences and gates caused bywind rain hail sleet snow flood or dust

9. DAMAGE

a) caused by fire resulting from itsundergoing any heating process orany process involving the applicationof heat

b) (other than by fire or explosion)resulting from its undergoing anyprocess of production packingtreatment testing commissioningservicing or repair

10. DAMAGE

a) caused by freezing

b) caused by escape of water from anytank apparatus or pipe

c) caused (other than by fire orexplosion) by malicious persons notacting on behalf of or in connectionwith any political organisation

in respect of any building which is emptyor not in use

12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

25

MATERIAL DAMAGE

11. DAMAGE in respect of

a) jewellery precious stones preciousmetals bullion furs curiosities works of art or rare books

b) property in transit

c) fixed glass

d) glass (other than fixed glass) chinaearthenware marble or other fragile or brittle objects

e) computers or data processing equipment

f) money cheques stamps bonds creditcards or securities of any description

other than such DAMAGE caused by aDefined Peril in so far as it is nototherwise excluded

12. a) vehicles licensed for road use(including accessories thereon)caravans trailers railway locomotivesrolling stock watercraft or aircraft

b) property or structures in course ofconstruction or erection and materialsor supplies in connection with all suchproperty in course of construction or erection

c) land roads pavements piers jettiesbridges culverts and excavations

d) livestock growing crops or trees

unless specifically mentioned as insuredby this Section

13. property which at the time of thehappening of DAMAGE is insured byor would but for the existence of thisSection be insured by any marine policyor policies except in respect of anyexcess beyond the amount which wouldhave been payable under the marinepolicy or policies had this insurance notbeen effected

14. any property more specifically insured byor on behalf of the Insured

15. DAMAGE occasioned by war invasion actof foreign enemy hostilities (whether warbe declared or not) civil war rebellionrevolution insurrection or military orusurped power nationalisation confiscationrequisition seizure or destruction by thegovernment or any public authority

16. loss or destruction of or damage to anyproperty whatsoever or any loss orexpense whatsoever resulting or arisingtherefrom or any consequential lossdirectly or indirectly caused by orcontributed to by or arising from



17. DAMAGE in Northern Ireland occasionedby or happening through or inconsequence directly or indirectly of

i) riot civil commotion and (except inrespect of DAMAGE by fire orexplosion) strikers locked-out workersor persons taking part in labourdisturbances or malicious persons


In any action suit or other proceedings where the Company alleges that byreason of this definition any DAMAGE isnot covered by this Section the burden ofproving that such DAMAGE is coveredshall be upon the Insured

18. consequential loss or damage of anykind or description except loss of rentwhen such loss is included in the coverunder this Section

12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

26

MATERIAL DAMAGE

19. DAMAGE to any computer or otherequipment or component or system oritem which processes stores transmitsor retrieves data or any part thereofwhether tangible or intangible(including but without limitation anyinformation programs or software) andwhether the property of the Insured ornot where such DAMAGE is caused byprogramming or operator error Virus orSimilar Mechanism or Hacking

but this shall not exclude DAMAGE nototherwise excluded which itself results froma Defined Peril save in respect of maliciouspersons other than thieves

Definitions

For the purposes of this Section Exclusionthe following Definitions apply

a) Virus or Similar Mechanism shall meanprogram code programming instruction orany set of instructions intentionallyconstructed with the ability to damageinterfere with or otherwise adverselyaffect computer programs data files oroperations whether involving self-replication or not

This Definition of Virus or SimilarMechanism includes but is not limited toTrojan horses worms and logic bombs

b) Hacking shall mean unauthorised accessto any computer or other equipment orcomponent or system or item whichprocesses stores transmits or retrieves data

General Provisions

1. DeductiblesThis Section does not cover the amountexcluded stated in Exclusion 1 in respectof each and every loss as ascertainedafter the application of all other terms andconditions of this Section including anycondition of Average

2. ExplosionIn respect of any vessel machinery orapparatus or its contents belonging to orunder the control of the Insured whichrequires to be examined to comply withany Statutory Regulations cover againstdestruction or damage caused by anexplosion thereof is subject to theprovision that such vessel machinery orapparatus shall be the subject of a policyor other contract providing the requiredinspection service

12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

27

MATERIAL DAMAGE

Special Clauses

Clauses 1-3 applicable only if the Clause numbers are entered inthe Schedule Clause 4 applicable only if referred to in the Schedule

1. Day One Average

A Subject to the following Special Conditionsthe basis upon which the amount payablein respect of the Property Insured undersums insured marked DA in the Scheduleis to be calculated shall be thereinstatement of the property lostdestroyed or damaged

For this purpose reinstatement means

a) the rebuilding or replacement ofproperty lost or destroyed whichprovided the liability of the Company isnot increased may be carried out

(i) in any manner suitable to therequirements of the Insured

(ii) upon another site

b) the repair or restoration of propertydamaged

in either case to a condition equivalent toor substantially the same but not better ormore extensive than its condition whennew

B The Insured having stated in writing theDeclared Value shown in bracketsbelow the sum insured for each of thesaid items the premium has beencalculated accordingly

Declared Value means the Insuredsassessment of the cost of reinstatement ofthe Property Insured arrived at in accordancewith paragraph A a) at the level of costsapplying at the inception of the Period ofInsurance (ignoring inflationary factors whichmay operate subsequently) together withinsofar as the insurance by the item providesdue allowance for

a) the additional cost of reinstatement tocomply with public authority requirements

b) professional fees

c) debris removal costs

Special Conditions

1 At the inception of each period ofinsurance the Insured shall notify AXAInsurance of the Declared Value of theProperty Insured by each of the saiditem(s) In the absence of such declarationthe last amount declared by the Insuredshall be taken as the Declared Valuewhich shall be adjusted for inflation for theensuing Period of Insurance

2 If at the time of DAMAGE the DeclaredValue of the property covered by suchitem be less than the cost ofreinstatement (as defined in paragraph Babove) at the inception of the Period ofInsurance then the Companys liability forany DAMAGE shall not exceed thatproportion thereof which the DeclaredValue bears to such cost of reinstatement

3 The liability of the Company for the repairor restoration of property damaged in partonly shall not exceed the amount whichwould have been payable had suchproperty been wholly destroyed

4 No payment beyond the amount whichwould have been payable in the absenceof this memorandum shall be made


b) until the cost of reinstatement shall havebeen actually incurred

c) if the Property Insured at the time of itsloss destruction or damage shall beinsured by any other insurance effectedby or on behalf of the Insured which isnot upon the same basis of reinstatement

12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

28

MATERIAL DAMAGE

5 All the terms and conditions of this Policyshall apply

a) in respect of any claim payable underthe provisions of this memorandumexcept in so far as they are variedhereby

b) where claims are payable as if thismemorandum had not beenincorporated except that the sum(s)insured shall be limited to 115% of theDeclared Value(s)

2. Stock Declaration Conditions

The premium in respect of any item in theSchedule where the sum insured is markedD is provisional and subject to adjustment asprovided below

The value of the property on the last day ofeach calendar month shall be declared by theInsured to AXA Insurance within thirty daysthereafter and if a declaration be not so giventhe Insured shall be deemed to have declaredthe Sum Insured as the value

On the expiry of each Period of Insurancethe actual premium shall be calculated at therate applicable on the total of the amountsdeclared divided by the number of thedeclarations If the actual premium be greaterthan the provisional premium the Insuredshall pay the difference If it is less thedifference shall be paid to the Insured

In consideration of the insurance not beingreduced by the amount of any loss theInsured shall pay the appropriate extrapremium on the amount of the loss from thedate thereof to the expiry of the Period of Insurance

It is warranted that every insurance on suchproperty covering DAMAGE insured herebyis on a similar basis of adjustment against declarations

3. Temporary Cover

The first premium has been calculated totake into account the cost of temporary cover(in accordance with particulars lodged withthe Company) pending issue of this Policy

4. Long Term Agreement

The discount shown in the Schedule isallowed off the net premiums on this Sectionin consideration of the Insured having givenan undertaking expiring on the date stated inthe Schedule to offer annually the insuranceunder this Section on the terms andconditions in force at the expiry of eachPeriod of Insurance and to pay the premiumannually in advance it being understood that

a) the Company shall be under no obligationto accept an offer made in accordancewith the above-mentioned undertaking

b) where appropriate the Sum Insured maybe reduced at any time to correspondwith any reduction in value

The above-mentioned undertaking applies toany policy (or policies) which may be issuedby the Company in substitution for thisSection and the same discount shall beallowed off the net premiums on anysubstituted policy or policies issued by theCompany as aforesaid

Payment of the premium due at the expirydate shown in the Schedule shall be deemedacceptance by the Insured of the terms ofthis clause

12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

29

BUSINESS INTERRUPTION SECTION

Memoranda


Definitions

NOTE 1: To the extent that the Insured areaccountable to the tax authorities for ValueAdded Tax all terms in this Section shall beexclusive of such tax

NOTE 2: For the purpose of these definitionsany adjustment implemented in current costaccounting shall be disregarded

Incident Loss or destruction of or damage to propertyused by the Insured at the Premises for thepurpose of the Business

or

Loss destruction of or damage to theInsureds books of account or other businessbooks or records at the Premises in respectof any item on Accounts Receivable

Indemnity PeriodThe period beginning with the occurrence ofthe Incident and ending not later than theMaximum Indemnity Period thereafter duringwhich the results of the Business shall beaffected in consequence thereof

TurnoverThe money paid or payable to the Insured for goods sold and delivered and for servicesrendered in the course of the Business at the Premises

Maximum Indemnity Period as stated in the Schedule

Uninsured Working Expenses as stated inthe Schedule

Gross ProfitThe amount by which

1) the sum of the amount of the Turnoverand the amounts of the closing stock andwork in progress shall exceed

2) the sum of the amount of the opening stock and work in progress and the amount of the UninsuredWorking Expenses

Note: The amounts of the opening andclosing stocks (including work in progress)shall be arrived at in accordance with theInsureds usual accounting methods dueprovision being made for depreciation

Gross RevenueThe money paid or payable to the Insured forservices rendered in the course of theBusiness at the Premises less the amount ofany Uninsured Working Expenses

Gross RentalsThe money paid or payable to the Insured fortenancies and other charges and for servicesrendered in the course of the Business at the Premises

Estimated Gross ProfitThe amount declared by the Insured to theCompany as representing not less than theGross Profit which it is anticipated will beearned by the Business during the financialyear most nearly concurrent with the Periodof Insurance (or a proportionately increasedmultiple thereof where the MaximumIndemnity Period exceeds twelve months)

12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

30

BUSINESS INTERRUPTION

Estimated Gross RevenueThe amount declared by the Insured to theCompany as representing not less than theGross Revenue which it is anticipated will beearned by the Business during the financialyear most nearly concurrent with the Periodof Insurance (or a proportionately increasedmultiple thereof where the MaximumIndemnity Period exceeds twelve months)

Estimated Gross RentalsThe amount declared by the Insured to theCompany as representing not less than theGross Rentals which it is anticipated will beearned by the Business during the financialyear most nearly concurrent with the Periodof Insurance (or a proportionately increasedmultiple thereof where the MaximumIndemnity Period exceeds twelve months)

Accounts ReceivableThe total amount of the balances debited toCustomers in the Insureds accounts anddeclared in the statement last given underthe provisions of the Premium AdjustmentClause after equitable allowances have beenmade for bad debts and for amounts debited(or invoiced but not debited) and credited(including credit notes and cash not passedthrough the books at the time of the Incident)to Customers accounts in the periodbetween the date of said statement and thedate of the Incident

CustomersAll customers of the Insured who obtaingoods or services from the Insured on acredit basis

12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

31


Rate of Gross ProfitThe rate of Gross Profit earned on theTurnover during the financial yearimmediately before the date of the Incident

Annual TurnoverThe Turnover during the twelve monthsimmediately before the date of the Incident

Standard TurnoverThe Turnover during the period in the twelvemonths immediately before the date of theIncident which corresponds with theIndemnity Period

Annual Gross RevenueThe Gross Revenue during the twelvemonths immediately before the date of the Incident

Standard Gross RevenueThe Gross Revenue during that period in thetwelve months immediately before the dateof the Incident which corresponds with theIndemnity Period

Annual Gross RentalsThe Gross Rentals during the twelve monthsimmediately before the date of the Incident

Standard Gross RentalsThe Gross Rentals during that period in thetwelve months immediately before the dateof the Incident which corresponds with theIndemnity Period

to which such adjustments shall be madeas may be necessary to provide for thetrend of the Business and for variations inor other circumstances affecting theBusiness either before or after the Incidentor which would have affected the Businesshad the Incident not occurred so that thefigures thus adjusted shall represent asnearly as may be reasonably practicablethe results which but for the Incident wouldhave been obtained during the relativeperiod after the Incident

12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

32


Basis of Loss Settlement

The undernoted terms of settlement applyonly if the paragraph title appears in theSchedule to this Section

Gross Profit/Estimated Gross ProfitThe insurance under this item is limited toloss of Gross Profit due to a) Reduction inTurnover and b) Increase in Cost of Workingand the amount payable as indemnitythereunder shall be

a) in respect of Reduction in Turnover: thesum produced by applying the Rate ofGross Profit to the amount by which theTurnover during the Indemnity Periodshall fall short of the Standard Turnoverin consequence of the Incident

b) in respect of Increase in Cost of Working:the additional expenditure (subject to theprovisions of the Uninsured WorkingExpenses clause) necessarily andreasonably incurred for the sole purposeof avoiding or diminishing the reductionin Turnover which but for thatexpenditure would have taken placeduring the Indemnity Period inconsequence of the Incident but notexceeding the sum produced by applying the Rate of Gross Profit to theamount of the reduction thereby avoided

less any sum saved during the IndemnityPeriod in respect of such of the charges andexpenses of the Business payable out ofGross Profit as may cease or be reduced inconsequence of the Incident

provided that if the sum insured by the itemon Gross Profit be less than the sumproduced by applying the Rate of GrossProfit to the Annual Turnover (or to aproportionately increased multiple thereofwhere the Maximum Indemnity Periodexceeds twelve months) the amount payableshall be proportionately reduced

Gross Revenue/Estimated Gross RevenueThe insurance under this item is limited to (a)loss of Gross Revenue and (b) Increase inCost of Working and the amount payable asindemnity thereunder shall be

a) in respect of loss of Gross Revenue: theamount by which the Gross Revenueduring the Indemnity Period shall fallshort of the Standard Gross Revenue inconsequence of the Incident

b) in respect of Increase in Cost of Working:the additional expenditure necessarilyand reasonably incurred for the solepurpose of avoiding or diminishing thereduction in Gross Revenue which butfor that expenditure would have takenplace during the Indemnity Period inconsequence of the Incident but notexceeding the amount of the reduction inGross Revenue thereby avoided

less any sum saved during the IndemnityPeriod in respect of such of the charges orexpenses of the Business payable out ofGross Revenue as may cease or be reducedin consequence of the Incident

provided that if the sum insured by the itemon Gross Revenue be less than the AnnualGross Revenue (or a proportionatelyincreased multiple thereof where theMaximum Indemnity Period exceeds twelvemonths) the amount payable shall beproportionately reduced

Additional Increased Cost of WorkingThe insurance under this item is limited tosuch further additional expenditure beyondthat recoverable under paragraph (b) of anyof the above items insured hereby as theInsured shall necessarily and reasonablyincur during the Indemnity Period inconsequence of the Incident for the solepurpose of avoiding or diminishing areduction in Turnover or Gross Revenue

12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

33


Increase in Cost of WorkingThe insurance under this item is limited toIncreased Cost of Working and the amountpayable as indemnity thereunder shall be

The Additional Expenditure necessarily andreasonably incurred by the Insured inconsequence of the Incident in order toprevent or minimise the interruption to theBusiness during the Indemnity Periodprovided that the Company shall not beliable for more than 50% of the sum insuredduring the first 3 months of the IndemnityPeriod and the balance in equal proportionsmonthly thereafter

Gross Rentals/Estimated Gross RentalsThe insurance under this item is limited to (a)loss of Gross Rentals and (b) Increase inCost of Working and the amount payable asindemnity thereunder shall be

a) in respect of loss of Gross Rentals: theamount by which the Gross Rentalsduring the Indemnity Period shall fallshort of the Standard Gross Rentals inconsequence of the Incident

b) in respect of Increase in Cost of Working:the additional expenditure necessarilyand reasonably incurred for the solepurpose of avoiding or diminishing theloss of Gross Rentals which but for thatexpenditure would have taken placeduring the Indemnity Period inconsequence of the Incident but notexceeding the amount of the reduction inGross Rentals thereby avoided

less any sum saved during the IndemnityPeriod in respect of such of the expensesand charges payable out of Gross Rentalsas may cease or be reduced in consequenceof the Incident

provided that if the sum insured by the itemon Gross Rentals be less than the AnnualGross Rentals (or a proportionatelyincreased multiple thereof where theMaximum Indemnity Period exceeds twelve

months) the amount payable shall beproportionately reduced

Accounts ReceivableThe insurance under this item is limited to (a)loss of Accounts Receivable and (b)Additional Expenditure and the amountpayable as indemnity thereunder shall be

a) in respect of loss of Accounts Receivable:the difference solely due to the Incidentbetween the amount of the AccountsReceivable at the date of the Incidentand the total amount received inpayment of them during the twelvemonths after the Incident

b) in respect of Additional Expenditure: theadditional expenditure necessarily andreasonably incurred for the sole purposeof avoiding or diminishing the loss ofAccounts Receivable which but for thatexpenditure would have occurred inconsequence of the Incident but notexceeding the amount which wouldotherwise have been payable under (a) above

provided that if at the time of the Incident the sum insured by this item be less than the total amount of the Accounts Receivablethe amount payable shall be proportionately reduced

12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

34


Clauses

Alternative Trading Clause

If during the Indemnity Period goods shall besold accommodation provided or servicesshall be rendered elsewhere than at thePremises for the benefit of the Businesseither by the Insured or by others on theInsureds behalf the money paid or payable inrespect of such sales accommodation orservices shall be brought into account inarriving at the Turnover Gross Revenue orGross Rentals during the Indemnity Period

Automatic Reinstatement of Sum Insured

In the event of loss the sum insured by thisSection will be automatically reinstated fromthe date of the loss unless written notice isgiven to the contrary either by AXA Insuranceor by the Insured and the Insured undertaketo pay such necessary premiums as may berequired for such reinstatement from that date

Inflation Protection Clause

The Company will adjust the sum insured inline with suitable indices of costs and therenewal premium for this Section will bebased on the adjusted sum insured

12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

35


New Business Clause

For the purpose of any claim arising from anIncident occurring before the completion ofthe first years trading of the Business at thePremises the terms Rate of Gross Profit

Annual Turnover Standard Turnover AnnualGross Revenue Standard Gross RevenueAnnual Gross Rentals and Standard GrossRentals shall bear the following meaningsand not as within stated -

Rate of Gross ProfitThe rate of Gross Profit earned on theTurnover during the period between the dateof the commencement of the Business andthe date of the Incident

Annual TurnoverThe proportional equivalent for a period oftwelve months of the Turnover realised duringthe period between the commencement of theBusiness and the date of the Incident

Standard TurnoverThe proportional equivalent for a period equalto the Indemnity Period of the Turnoverrealised during the period between thecommencement of the Business and the dateof the Incident

Annual Gross RevenueThe proportional equivalent for a period oftwelve months of the Gross Revenue realisedduring the period between the commencementof the Business and the date of the Incident

Standard Gross RevenueThe proportional equivalent for a period equalto the Indemnity Period of the Gross Revenuerealised during the period between thecommencement of the Business and the dateof the Incident

Annual Gross RentalsThe proportional equivalent for a period oftwelve months of the Gross Rentals realisedduring the period between the commencementof the Business and the date of the Incident

Standard Gross RentalsThe proportional equivalent for a period equalto the Indemnity Period of the Gross Rentalsrealised during the period between thecommencement of the Business and the dateof the Incident

to which such adjustments shall bemade as may be necessary to providefor the trend of the Business and forvariations in or other circumstancesaffecting the Business either before orafter the Incident or which would haveaffected the Business had the Incidentnot occurred so that the figures thusadjusted shall represent as nearly asmay be reasonably practicable theresults which but for the Incident wouldhave been obtained during the relativeperiod after the Incident

12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

36


Payments on Account Clause

Payments on account may be made to theInsured monthly during the Indemnity Periodif desired

Premium Adjustment Clause

a) The premium paid hereon may beadjusted on receipt by AXA Insurance of adeclaration of Gross Profit GrossRevenue or Gross Rentals earned duringthe financial year most nearly concurrentwith the Period of Insurance as reportedby the Insureds auditors

If any incident shall have occurred givingrise to a claim for loss of Gross ProfitGross Revenue or Gross Rentals theabove mentioned declaration shall beincreased by the Company for thepurpose of premium adjustment by theamount by which the Gross Profit GrossRevenue or Gross Rentals was reducedduring the financial year solely inconsequence of the Incident

If either declaration (adjusted as providedfor above and proportionately increasedwhere the Maximum Indemnity Periodexceeds 12 months) is less than the suminsured on Gross Profit Gross Revenue orGross Rentals for the relative period ofinsurance the Company will allow a prorata return of premium not exceeding50% of the premium paid

N.B. Accountants may be substituted forAuditors in respect of companies exemptfrom credit requirements

b) It is a condition precedent to liabilitywhere Accounts Receivable are insuredby this Section that the Insured shallwithin thirty days of the end of eachmonth deposit with AXA Insurance asigned statement showing the totalamount of the balance in the Insuredsaccounts debited to Customers andremaining unpaid as at the end of the

said month In the event of the averageamount of the said signed statementsduring any annual Period of Insurancebeing less than the sum insured by theitem on Accounts Receivable a pro ratareturn of premium not exceeding 50% ofthe premium paid on such sum insuredfor such Period of Insurance will be madein respect of the difference

Prevention of Access Clause

Subject to the conditions of this Section lossresulting from interruption of or interferencewith the Business in consequence of lossdestruction of or damage to property in thevicinity of the Premises loss or destruction ofor damage to which shall prevent or hinderthe use of the Premises or access theretowhether the Premises or property of theInsured therein shall be damaged or not (butexcluding loss or destruction of or damage toproperty of any supply undertaking fromwhich the Insured obtain electricity gas orwater or telecommunications services whichprevents or hinders the supply of suchservices) shall be deemed to be an Incident

12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

37


Professional Accountants Clause

Any particulars or details contained in theInsureds books of account or other businessbooks or documents which may be requiredby the Company under part (b) of SpecialCondition 2 for the purpose of investigatingor verifying any claim hereunder may beproduced by professional accountants if atthe time they are regularly acting as such forthe Insured and their report shall be primafacie evidence of the particulars and detailsto which such report relates

The Company will pay to the Insured thereasonable charges payable by the Insuredto their professional accountants forproducing such particulars or details or anyother proofs information or evidence as maybe required by the Company under part (b)of Special Condition 2 of this Section andreporting that such particulars or details arein accordance with the Insureds books of account or other business books or documents

provided that the sum of the amount payableunder this Clause and the amount otherwisepayable under the Section shall in no caseexceed the liability of the Company as stated

Uninsured Working Expenses Clause

If any working expenses of the Business benot insured by this Section (having beendeducted in arriving at the Gross Profit asdefined herein) then in computing theamount recoverable hereunder as Increasein Cost of Working that proportion only ofany additional expenditure shall be broughtinto account which the Gross Profit bears tothe sum of the Gross Profit and theUninsured Working Expenses

Subrogation Waiver Clause

In the event of a claim arising under thissection the Company agree to waive anyrights remedies or relief to which they mighthave become entitled by subrogation against

a) any Company standing in relation ofParent to Subsidiary (Subsidiary toParent) to the Insured as defined inthe Companies Act or the Companies(NI) Order as appropriate current atthe time of the Damage

b) any Company which is a subsidiary ofa Parent Company of which theInsured are themselves a Subsidiary ineach case within the meaning of theCompanies Act or the Companies (NI)Order as appropriate current at thetime of the Damage

12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

38


Exclusion Clauses

Terrorism Exclusion Clause

This Section does not coverLoss damage cost or expense of whatsoevernature directly or indirectly caused byresulting from or in connection with



If the Company alleges that by reason of thisexclusion any loss damage cost or expenseis not covered by this Section of the Policythe burden of proving the contrary shall beupon the Insured

In the event any portion of this exclusion isfound to be invalid or unenforceable theremainder shall remain in full force and effect

Definition – TerrorismFor the purpose of this exclusion an act ofTerrorism shall mean an act including but notlimited to the use of force or violence and orthreat thereof of any person or group(s) ofpersons whether acting alone or on behalf ofor in connection with any organisation(s) orgovernment(s) committed for politicalreligious ideological or similar purposesincluding the intention to influence anygovernment and or put the public or anysection of the public in fear

In respect of private house(s) or contentsthereof insured in the name of an individualthis Terrorism Exclusion applies to lossdamage cost or expense caused by nuclearchemical or biological contaminationresulting directly or indirectly from Terrorism

Date Recognition Exclusion Clause

This Section does not coverCONSEQUENTIAL LOSS directly orindirectly caused by or contributed to by orarising from the failure of any computer orother equipment data processing serviceproduct microchip micro processor integratedcircuit embedded chip or similar devicecomputer software program or process orany other electronic system or any design oradvice in connection with any of theforegoing irrespective of ownershippossession or use and whether occurringbefore during or after the Year 2000

i) correctly to recognise any date as its truecalendar date

ii) to capture save or retain and/or correctlyto manipulate interpret or process anydata or information or command orinstruction as a result of treating any dateotherwise than as its true calendar date

iii) to capture save or retain or correctly toprocess any data as a result of theoperation of any command which hasbeen programmed into any computersoftware being a command which causesthe loss of data or the inability to capturesave retain or correctly to process suchdata on or after any date

but this shall not exclude subsequentCONSEQUENTIAL LOSS not otherwiseexcluded which itself results from firelightning explosion aircraft or other aerialdevices or articles dropped therefrom riotcivil commotion strikers locked out workerspersons taking part in labour disturbancesmalicious persons theft earthquake stormflood escape of water from any tankapparatus or pipe or impact by any roadvehicle or animal provided such contingencyis insured by this Section

12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

39


Special Conditions

1. Alterations

This Section shall be avoided if after thecommencement of this insurance theBusiness be wound up or carried on by a liquidator or receiver or permanently discontinued

2. Claims Conditions

a) In the event of any loss destruction ordamage in consequence of which a claimis or may be made under this Section theInsured shall

– notify the Company immediately

– deliver to the Company at the Insuredsexpense within 7 days of its happeningfull details of loss destruction ordamage caused by riot civil commotionstrikers locked-out workers personstaking part in labour disturbances ormalicious persons

– with due diligence carry out and permitto be taken any action which may bereasonably practicable to minimise orcheck any interruption of orinterference with the Business or toavoid or diminish the loss

b) In the event of a claim being made underthis Section the Insured at their ownexpense shall

– (not later than 30 days after the expiryof the Indemnity Period or within suchfurther time as the Company mayallow) deliver to the Company inwriting particulars of their claimtogether with details of all otherinsurances covering property used bythe Insured at the Premises for thepurpose of the Business or any part ofit or any resulting consequential loss

NB The words in brackets do not apply to any item on Accounts Receivable

– deliver to the Company such books ofaccount and other business booksvouchers invoices balance sheets andother documents proofs informationexplanation and other evidence asmay be reasonably required by theCompany for the purpose ofinvestigating or verifying the claimtogether with if demanded a statutorydeclaration of the truth of the claimand of any matters connected with it

c) If the terms of this condition have notbeen complied with

– no claims under this Section shall bepayable and

– any payment on account of the claimalready made shall be repaid to theCompany forthwith

12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

40


Special Clauses

Clauses 1-3 applicable only if the clause numbers are entered in theSchedule Clause 4 applicable only if referred to in the Schedule

1. Deposit Premium Clause

The first and annual premiums areprovisional being 75% of the premiumspayable at the commencement of the Periodof Insurance with the balance of 25% to bepaid within 6 months of the expiry of thatperiod except that in respect of any item onGross Profit Gross Revenue or GrossRentals the premium paid shall be adjustedon receipt by AXA Insurance of a declaration of Gross Profit Gross Revenue or Gross Rentals earned during the financialyear most nearly concurrent with the year of insurance as reported by the Insureds auditors

NB Accountants may be substituted forAuditors in respect of companies exemptfrom audit requirements

If any Incident shall have occurred giving riseto a claim for loss of Gross Profit GrossRevenue or Gross Rentals the abovementioned declaration shall be increased byAXA Insurance for the purpose of premiumadjustment by the amount by which theGross Profit Gross Revenue or GrossRentals was reduced during the financialyear solely in consequence of the Incident

If the declaration (adjusted as provided forabove and proportionately increased wherethe Maximum Indemnity Period exceeds 12 months)

a) is less than 75% of the sum insured onGross Profit Gross Revenue or GrossRentals for the relative period theCompany will allow a pro rata return ofpremium not exceeding 331/3 % of theprovisional premium paid

b) is greater than 75% of the sum insured onGross Profit Gross Revenue or GrossRentals for the relative period the Insuredshall pay a pro rata additional premiumnot exceeding 331/3 % of the provisionalpremium paid

In the event that no declaration is receivedwithin 6 months of the expiry of the Period ofInsurance the balance of 25% shall be paid

Part A of the Premium Adjustment Clause is deleted

2. Declaration Linked Clause

a) The Insured shall prior to each renewalfurnish AXA Insurance with the EstimatedGross Profit Estimated Gross Revenue orEstimated Gross Rentals as insuredhereby for the financial year most nearlyconcurrent with the ensuing year of insurance

b) The first and annual premiums in respectof each item on Estimated Gross ProfitEstimated Gross Revenue or EstimatedGross Rentals as insured hereby areprovisional and are based on theEstimated Gross Profit Estimated GrossRevenue or Estimated Gross Rentals

The Insured shall provide AXA Insurance notlater than six months after the expiry of eachPeriod of Insurance with a declarationconfirmed by the Insureds auditors of theGross Profit Gross Revenue or GrossRentals earned during the financial yearmost nearly concurrent with the Period of Insurance

NB Accountants may be substituted forAuditors in respect of companies exemptfrom audit requirements

If any Incident shall have occurred giving riseto a claim for loss of Gross Profit GrossRevenue or Gross Rentals the abovementioned declaration shall be increased bythe Company for the purpose of premium

12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

41


adjustment by the amount by which theGross Profit Gross Revenue or GrossRentals was reduced during the financialyear solely in consequence of the Incident

If the declaration (adjusted as providedabove and proportionately increased wherethe Maximum Indemnity Period exceeds12 months)

(i) is less than the Estimated Gross ProfitEstimated Gross Revenue orEstimated Gross Rentals as insuredhereby for the relative Period ofInsurance the Company will allow apro rata return of the premium paid onthe Estimated Gross Profit EstimatedGross Revenue or Estimated GrossRentals as insured hereby but notexceeding 50% of such premium

(ii) is greater than the Estimated GrossProfit Estimated Gross Revenue orEstimated Gross Rentals as insuredhereby for the relative Period ofInsurance the Insured shall pay a prorata addition to the premium paid onthe Estimated Gross Profit EstimatedGross Revenue or Estimated GrossRentals as insured hereby

c) Notwithstanding proviso 2 in IndemnityClause A the liability of the Company shallin no case exceed in respect of GrossProfit Gross Revenue or Gross Rentals133 1/3% of the Estimated Gross ProfitEstimated Gross Revenue or EstimatedGross Rentals stated herein and inrespect of each other item 100% of thesums insured by the said items or suchother amounts as may be substitutedtherefor by memorandum signed by or onbehalf of the Company

Part A of the Premium Adjustment clause is deleted

3. Temporary Cover

The first premium has been calculated totake into account the cost of temporary cover(in accordance with particulars lodged withthe Company) pending issue of this Section

4. Long Term Agreement Clause

The discount shown in the Schedule isallowed off the net premiums on this Sectionin consideration of the Insured having givenan undertaking expiring on the date stated in the Schedule to offer annually theinsurance under this Section on the termsand conditions in force at the expiry of eachPeriod of Insurance and to pay the premiumannually in advance it being understood that:-

a) the Company shall be under no obligationto accept an offer made in accordancewith the above mentioned undertaking

b) the sum insured may be reduced at anytime to correspond with any reduction in Business

The above mentioned undertaking applies toany section or sections which may be issuedby the Company in substitution for thisSection and the same discount shall beallowed off the net premium on anysubstituted section or sections issued by theCompany as aforesaid


12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

42


The Cover - Specified Perils


Indemnity Clause A

(Applicable to all items other than any itemon Accounts Receivable)

The Company agrees that if any building orother property used by the Insured at thePremises for the purpose of the Business belost destroyed or damaged by any of thePerils detailed overleaf which are shown asin force in the Schedule and in consequencethe Business carried on by the Insured at thePremises be interrupted or interfered withthen the Company will pay to the Insured inrespect of each item in the Schedule theamount of loss resulting from suchinterruption or interference provided that

1. at the time of the happening of the lossdestruction or damage there shall be inforce an insurance covering the interestof the Insured in the property at thePremises against such loss destruction ordamage and that

i) payments shall have been made orliability admitted therefor

or

ii) payment would have been made orliability admitted therefor but for theoperation of a proviso in suchinsurance excluding liability for lossesbelow a specified amount

2. the liability of the Company under thisSection shall not exceed

i) in the whole the total sum insured orin respect of any item its sum insuredat the time of the loss destruction or damage

ii) the sum insured remaining afterdeduction for any other interruption orinterference consequent upon lossdestruction or damage occurring duringthe same Period of Insurance unless theCompany shall have agreed to reinstateany such sum insured


Indemnity Clause B

(Applicable to any item on AccountsReceivable)

The Company agrees that if any of theInsureds books of account or other businessbooks or records at the Premises be sodestroyed or damaged by any of the Perilsdetailed overleaf which are shown as inforce in the Schedule as to render itimpossible for the Insured to obtain fromCustomers all the sums due to them andoutstanding at the date of the damage thenthe Company will pay to the Insured theamount they may be entitled to recoverunder the provisions of this Section providedthe liability of the Company under thisSection shall not exceed

i) in the whole the total sum insured orin respect of any item its sum insuredat the time of the loss destruction ordamage

ii) the sum insured remaining afterdeduction for any other claim underthis Section consequent upon lossdestruction or damage occurring duringthe same Period of Insurance unlessthe Company shall have agreed toreinstate any such sum insured


12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

43


Additional Definition

The words CONSEQUENTIAL LOSS incapital letters shall mean loss resulting frominterruption of or interference with theBusiness carried on by the Insured at thePremises in consequence of loss ordestruction of or damage to property used bythe Insured at the Premises for the purposeof the Business

This Section incorporates the ScheduleMemoranda and Endorsements which shallbe read together as one contract Words andexpressions to which a specific meaning isgiven in any part of this Section shall havethe same meaning wherever they appear

Perils

A FIRE but excluding CONSEQUENTIALLOSS caused by

a) explosion resulting from fire

b) earthquake or subterranean fire

c) i) its own spontaneous fermentationor heating or

ii) its undergoing any heating processor any process involving theapplication of heat

LIGHTNING

EXPLOSION

a) of boilers used for domestic purposes only

b) of any other boilers or economisers onthe Premises

c) of gas used for domestic purposes only

but excluding CONSEQUENTIAL LOSScaused by earthquake or subterranean fire

B EXPLOSION excluding CONSEQUENTIAL LOSS

a) caused by or consisting of the burstingof any vessel machine or apparatus(not being a boiler or economiser onthe Premises) in which internal

pressure is due to steam only andbelonging to or under the control of the Insured

b) by pressure waves caused by aircraftor other aerial devices travelling atsonic or supersonic speeds

C AIRCRAFT or other aerial devices orarticles dropped therefrom excludingCONSEQUENTIAL LOSS by pressurewaves caused by aircraft or other aerialdevices travelling at sonic or supersonicspeeds

D RIOT CIVIL COMMOTION STRIKERSLOCKED-OUT WORKERS or personstaking part in labour disturbances ormalicious persons acting on behalf of orin connection with any politicalorganisation excludingCONSEQUENTIAL LOSS

a) arising from confiscation requisition ordestruction by order of the governmentor any public authority


c) arising from deliberate erasure lossdistortion or corruption of informationon computer systems or other recordsprograms or software

E RIOT CIVIL COMMOTION STRIKERSLOCKED-OUT WORKERS or personstaking part in labour disturbances orMALICIOUS PERSONS excludingCONSEQUENTIAL LOSS

a) arising from confiscation requisition ordestruction by order of the governmentor any public authority


c) caused (other than by fire orexplosion) by malicious persons notacting on behalf of or in connectionwith any political organisation inrespect of any building which is emptyor not in use

12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

44


d) arising from deliberate erasure lossdistortion or corruption of informationon computer systems or other recordsprograms or software

F EARTHQUAKE

G SUBTERRANEAN FIRE

H STORM excluding CONSEQUENTIAL LOSS

a) caused by

i) the escape of water from thenormal confines of any natural orartificial water course lake reservoircanal or dam

ii) inundation from the sea

whether resulting from storm or otherwise

b) attributable solely to change in thewater table level

c) caused by frost subsidence groundheave or landslip

d) in respect of movable property in theopen fences and gates

I STORM OR FLOOD excludingCONSEQUENTIAL LOSS

a) attributable solely to change in thewater table level

b) caused by frost subsidence groundheave or landslip

c) in respect of movable property in theopen fences and gates

J ESCAPE OF WATER FROM ANY TANKAPPARATUS OR PIPE excludingCONSEQUENTIAL LOSS

a) caused by water discharged or leakingfrom any automatic sprinklerinstallation

b) in respect of any building which isempty or not in use

K IMPACT by any road vehicle or animalnot belonging to or under the control ofthe Insured or any occupier of thePremises or their respective employees

L IMPACT by any road vehicle or animal

M ACCIDENTAL ESCAPE OF WATERFROM ANY AUTOMATIC SPRINKLERINSTALLATION in the Premises not caused by

a) freezing whilst the building insofar as itis in the Insureds ownership ortenancy is empty or not in use

b) explosion earthquake subterraneanfire or heat caused by fire

N FIRE only resulting from the propertysown SPONTANEOUS FERMENTATION OR HEATING

O THEFT or any attempt thereat involvingentry to or exit from the Premises byforcible and violent means

12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

45


EXCLUSIONS


1. CONSEQUENTIAL LOSS occasioned by

a) riot or civil commotion unless theseperils are specified in the Scheduleand then only to the extent stated

b) war invasion act of foreign enemyhostilities (whether war be declared or not) civil war rebellion revolutioninsurrection or military or usurped power

2. loss or destruction of or damageoccasioned by or happening through oroccasioning loss destruction of ordamage to any property whatsoever orany loss or expense whatsoever resultingor arising therefrom or any consequentialloss directly or indirectly caused by orcontributed to by or arising from



3. CONSEQUENTIAL LOSS in NorthernIreland occasioned by or happeningthrough or in consequence directly orindirectly of

(i) civil commotion

(ii) TERRORISM as defined in theTerrorism Exclusion Clause

In any action suit or other proceedingswhere the Company alleges that byreason of this definition anyCONSEQUENTIAL LOSS is not coveredby this Section the burden of proving thatsuch CONSEQUENTIAL LOSS iscovered shall be upon the Insured

4. loss resulting from pollution orcontamination but this shall not excludeloss resulting from destruction of ordamage to property used by the Insuredat the Premises for the purposes of the Business not otherwise excludedcaused by

a) pollution or contamination at thePremises which itself results from aperil hereby insured against

b) any peril hereby insured against which itself results from pollution or contamination

12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

46

The Cover - All Risks


Indemnity Clause A

(Applicable to all items other than any itemon Accounts Receivable)

The Company agrees that if any building orother property used by the Insured at thePremises for the purpose of the Business beaccidentally lost destroyed or damaged and inconsequence the Business carried on by theInsured at the Premises be interrupted orinterfered with then the Company will pay tothe Insured in respect of each item in theSchedule the amount of loss resulting fromsuch interruption or interference provided that

1. at the time of the happening of the lossdestruction or damage there shall be inforce an insurance covering the interest ofthe Insured in the property at thePremises against such loss destruction ordamage and that

i) payment shall have been made orliability admitted therefor

or

ii) payment would have been made orliability admitted therefor but for theoperation of a proviso in suchinsurance excluding liability for lossesbelow a specified amount

2. the liability of the Company under thisSection shall not exceed

i) in the whole the total sum insured or in respect of any item its sum insuredat the time of the loss destruction or damage

ii) the sum insured remaining afterdeduction for any other interruption orinterference consequent upon lossdestruction or damage occurring duringthe same Period of Insurance unless theCompany shall have agreed to reinstateany such sum insured


Indemnity Clause B

(Applicable to any item on AccountsReceivable)

The Company agrees that if any of theInsureds books of account or other businessbooks or records at the Premises be sodestroyed or damaged as to render itimpossible for the Insured to obtain fromCustomers all the sums due to them andoutstanding at the date of the damage thenthe Company will pay to the Insured theamount they may be entitled to recover underthe provisions of this Section provided theliability of the Company under this Sectionshall not exceed

i) in the whole the total sum insured or inrespect of any item its sum insured at thetime of the loss destruction or damage

ii) the sum insured remaining afterdeduction for any other claim under thisSection consequent upon loss destructionor damage occurring during the samePeriod of Insurance unless the Companyshall have agreed to reinstate any suchsum insured



12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

47

Additional Definitions

1. The words CONSEQUENTIAL LOSS incapital letters shall mean loss resultingfrom interruption of or interference withthe Business carried on by the Insured atthe Premises in consequence of loss ordestruction of or damage to property usedby the Insured at the Premises for thepurpose of the Business

2. The words Defined Peril shall mean firelightning explosion aircraft or other aerialdevices or articles dropped therefrom riotcivil commotion strikers locked-outworkers persons taking part in labourdisturbances malicious personsearthquake storm flood escape of waterfrom any tank apparatus or pipe or impactby any road vehicle or animal

This Section incorporates the ScheduleMemoranda and Endorsements which shallbe read together as one contract Words andexpressions to which a specific meaning isgiven in any part of this Section shall havethe same meaning wherever they appear

Exclusions


1. CONSEQUENTIAL LOSS caused by or consisting of

a) inherent vice latent defect gradualdeterioration wear and tear frostchange in water table level its ownfaulty or defective design or materials

b) faulty or defective workmanshipoperational error or omission on thepart of the Insured or any of theiremployees

c) the bursting of any vessel machine orapparatus (not being a boiler oreconomiser on the Premises or aboiler used for domestic purposesonly) in which internal pressure is dueto steam only and belonging to orunder the control of the Insured

d) pressure waves caused by aircraft orother aerial devices travelling at sonicor supersonic speeds

but this shall not excludeCONSEQUENTIAL LOSS which itselfresults from a cause not otherwiseexcluded

2. CONSEQUENTIAL LOSS

a) caused by or consisting of corrosionrust wet or dry rot shrinkageevaporation loss of weight dampnessdryness marring scratching vermin orinsects

b) caused by or consisting of change intemperature colour flavour texture orfinish

c) arising directly from theft or attemptedtheft

d) consisting of joint leakage failure ofwelds cracking fracturing collapse oroverheating of boilers economiserssuperheaters pressure vessels or anyrange of steam and feed piping inconnection therewith

e) consisting of mechanical or electricalbreakdown or derangement in respectof the particular machine apparatus orequipment in which such breakdownor derangement originates

f) caused by the deliberate act of asupply undertaking in withholding thesupply of water gas electricity fuel ortelecommunications services


i) such CONSEQUENTIAL LOSS nototherwise excluded which itselfresults from a Defined Peril or fromany other accidental lossdestruction or damage

ii) subsequent CONSEQUENTIALLOSS which itself results from acause not otherwise excluded


12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

48

3. loss resulting from pollution orcontamination but this shall not excludeloss resulting from destruction of ordamage to property used by the Insuredat the Premises for the purpose of theBusiness not otherwise excluded causedby

i) pollution or contamination at thePremises which itself results from aDefined Peril

ii) a Defined Peril which itself resultsfrom pollution or contamination

4. CONSEQUENTIAL LOSS caused by or consisting of

a) subsidence ground heave or landslipunless resulting from fire explosionearthquake or the escape of waterfrom any tank apparatus or pipe

b) normal settlement or bedding down ofnew structures

c) acts of fraud or dishonesty

CONSEQUENTIAL LOSS arising directlyor indirectly from

d) disappearance unexplained orinventory shortage misfiling ormisplacing of information

e) i) erasure loss distortion or corruptionof information on computer systemsor other records programs orsoftware caused deliberately byrioters strikers locked-out workerspersons taking part in labourdisturbances or civil commotion ormalicious persons

ii) other erasure loss distortion orcorruption of information oncomputer systems or other recordsprograms or software unlessresulting from a Defined Peril in sofar as it is not otherwise excluded

5. loss resulting from destruction of ordamage to a building or structure used bythe Insured at the Premises caused by itsown collapse or cracking unless resultingfrom a Defined Peril in so far as it is nototherwise excluded

6. CONSEQUENTIAL LOSS in respect ofmoveable property in the open fencesand gates caused by wind rain hail sleetsnow flood or dust


a) caused by fire resulting from itsundergoing any heating process orany process involving the applicationof heat

b) (other than by fire or explosion)resulting from its undergoing anyprocess of production packingtreatment testing commissioningservicing or repair


a) caused by freezing

b) caused by escape of water from anytank apparatus or pipe

c) caused (other than by fire orexplosion) by malicious persons notacting on behalf of or in connectionwith any political organisation

in respect of any building which is emptyor not in use


12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

49

9. CONSEQUENTIAL LOSS in respect of

a) fixed glass

b) glass (other than fixed glass) chinaearthenware marble or other fragile orbrittle objects

c) computers or data processing equipment

d) vehicles licensed for road use(including accessories thereon)caravans trailers railway locomotivesrolling stock watercraft or aircraft

e) property or structures in course ofconstruction or erection and materialsor supplies in connection with all suchproperty in course of construction or erection

f) land roads pavements piers jettiesbridges culverts or excavations

g) livestock growing crops or trees

other than in respect of suchCONSEQUENTIAL LOSS caused by aDefined Peril in so far as it is nototherwise excluded

10. CONSEQUENTIAL LOSS occasioned bywar invasion act of foreign enemyhostilities (whether war be declared ornot) civil war rebellion revolutioninsurrection military or usurped powernationalisation confiscation requisitionseizure or destruction by the governmentor any public authority

11. loss destruction or damage occasionedby or happening through or occasioningloss or destruction of or damage to anyproperty whatsoever or any loss orexpense whatsoever resulting or arisingtherefrom or any consequential lossdirectly or indirectly caused by or contributed to by or arising from



12. CONSEQUENTIAL LOSS in NorthernIreland occasioned by or happeningthrough or in consequence directly orindirectly of

i) riot civil commotion and (except inrespect of CONSEQUENTIAL LOSSby fire or explosion) strikers locked-out workers or persons takingpart in labour disturbances ormalicious persons

ii) TERRORISM as defined in the Terrorism Exclusion Clause

In any action suit or other proceedingswhere the Company alleges that byreason of this definition anyCONSEQUENTIAL LOSS is not coveredby this Section the burden of proving thatsuch CONSEQUENTIAL LOSS iscovered shall be upon the Insured

13. CONSEQUENTIAL LOSS directly orindirectly caused by or arising from anyprogramming or operator error Virus orSimilar Mechanism or Hacking in respectof any computer or other equipment orcomponent or system or item whichprocesses stores transmits or retrievesdata or any part thereof whether tangibleor intangible (including but withoutlimitation any information or programs orsoftware) and whether the property of theInsured or not

but this shall not excludeCONSEQUENTIAL LOSS not otherwiseexcluded which itself results from aDefined Peril save in respect of malicious persons otherthan thieves


12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

50


Definitionsa) Virus or Similar Mechanism shall mean

program code programming instruction orany set of instructions intentionallyconstructed with the ability to damageinterfere with or otherwise adverselyaffect computer programs data files oroperations whether involving self-replication or not


b) Hacking shall mean unauthorised accessto any computer or other equipment orcomponent or system or item whichprocesses stores transmits and retrievesdata

The above Exclusion is deemed to apply inaddition to Section Exclusion 4 (e)


12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

51

THEFT SECTION


1. Indemnity

The Company agrees subject to the termscontained herein or endorsed hereon that inthe event of

1. any of the Property Insured while withinthe Premises being lost or damaged asthe result of

a) theft (or attempted theft) involvingentry to or exit from the Premises byforcible and violent means

b) theft following assault or violence orthreat thereof to the Insured anyemployee of the Insured or any otherperson lawfully in the Premises

2. the Premises sustaining damage forwhich the Insured are responsible as theresult of theft involving entry to or exitfrom the Premises by forcible and violentmeans or any attempt thereat

the Company will by payment or at its optionby repair reinstatement or replacementindemnify the Insured in respect of such loss or damage

The liability of the Company during any onePeriod of Insurance shall not exceed in respect of

1. each item of the Property Insured thesum insured set against it and for allitems the total sum insured adjusted inaccordance with the Inflation ProtectionClause if applicable

2. damage to the Premises the sumequivalent to make good such damage forwhich the Insured are responsible

The word Premises shall not include unlessspecifically mentioned any garden yardoutbuilding or other building notcommunicating with the main building of the Premises

2. Property Insured

Column 1 Contents the property of theInsured or held by them intrust for which they areresponsible excludinglandlords fixtures and fittingsand stock and materials intrade and vehicles licensedfor road use (andaccessories thereon)

Column 2 Stock and materials in tradethe property of the Insuredor held by them in trust forwhich they are responsible

Column 3 Miscellaneous and as specified in thedescription column

3. Security of Premises

If this insurance has been granted followinga survey of your Premises it is important thatyou should not alter door and windowfastenings and other security devices (exceptas may be provided in the Further ProtectionClause if shown in the Schedule) without thewritten consent of the Company In your owninterest please give early notification ofproposed changes so that if necessary afurther survey can be undertaken

4. Plan References

Plan References (if any) refer to plansand reports of the premises lodged withAXA Insurance

5. Changes in Tenancy

The Insured must advise AXA Insurance ofall changes in tenancy or occupation withinthe Premises in accordance with GeneralCondition 2 of the Policy

12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

52

THEFT

6. Exclusions


1. Amount Excludedthe first £300 of each and every loss afterthe application of any condition of Average

2. Money Etcbills of exchange promissory notes cashbank and currency notes cheques postalorders money orders crossed bankersdrafts current postage stamps unusedunits in franking machines NationalSavings stamps and Certificates NationalInsurance stamps Trading stamps Gifttokens Customer redemption vouchersVAT purchase receipts Credit Companysales vouchers credit card counterfoilstravellers tickets and insofar as such arenot otherwise insured Holidays with paystamps and Luncheon Vouchers

3. Property Excludedloss or damage

a) which can be insured against by a standard fire policy

b) to glass

c) to property more specifically insuredby or on behalf of the Insured

4. War Etc Risksloss destruction or damage occasioned by war invasion act of foreign enemy hostilities (whether war be declared or not) civil war rebellion revolution insurrection or military or usurped power

5. Nuclear Risksloss or destruction of or damage to any property whatsoever or any loss or expense whatsoever resulting or arising therefrom or any consequential loss or any legal liability of whatsoever nature directly or indirectly caused by or contributed to by or arising from

a) ionising radiations or contamination by radioactivity from any nuclear fuelor from any nuclear waste from thecombustion of nuclear fuel

b) the radioactive toxic explosive or other hazardous properties of anyexplosive nuclear assembly or nuclear component thereof

6. Northern Irelandloss destruction or damage in Northern Ireland occasioned by or happening through or in consequence directly or indirectly of

i) civil commotion

ii) TERRORISM as defined under Material Damage Terrorism Exclusion Clause

In any action suit or other proceedings where the Company alleges that by reason of this definition any loss destruction or damage is not covered by this Section the burden of proving that such loss destruction or damage is covered shall be upon the Insured

7. Clauses

Average ClauseThe sum insured by each item of this Section(other than any item subject to the Day OneAverage Clause) is declared to be separatelysubject to Average i.e. if such sum insuredshall at the commencement of any loss ordamage be less than the value of theproperty covered within such sum insuredthe amount payable by the Company inrespect of such loss or damage shall beproportionately reduced

ContentsIt is agreed that the term Contents isunderstood to include insofar as they are nototherwise insured

a) documents manuscripts and businessbooks but only for the cost of thematerials and clerical labour expended in reproducing such records (excludingany expense in connection with theproduction of information to be recorded therein)

12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

53

THEFT

b) computer systems records but only for thecost of the materials and clerical labourand computer time expended inreproducing such records (excluding any expense in connection with theproduction of information to be recorded therein)

c) patterns models moulds plans anddesigns for an amount not exceeding the cost of the labour and materialsexpended in reinstatement

d) tenants improvements alterations and decorations

e) directors partners customers visitors andemployees personal effects of everydescription (other than motor vehicles andMoney) for an amount not exceeding£500 in respect of any one person

Contract Price ClauseIn respect only of goods sold but notdelivered for which the Insured areresponsible subject to a sale contract whichfollowing loss or damage is cancelled byreason of its conditions wholly or to theextent of the loss or damage the liability ofthe Company shall be based on the contractprice For the purpose of this insurance thevalue of all goods to which this clause couldapply in the event of loss or damage shallalso be ascertained on this basis

Designation ClauseFor the purpose of determining wherenecessary the heading under which anyproperty is insured the Company agrees toaccept the designation under which suchproperty has been entered in the Insuredsbooks

ExplosivesThis Section will (in addition to the total suminsured) indemnify the Insured in respect ofdamage to any property included in thisSection directly or indirectly caused by or inconsequence of the use of explosives on theoccasion of any Theft (within the meaning ofthis Section) or any attempt thereat at thePremises but only insofar as the risk of

explosion is not insured under any otherpolicy effected by or on behalf of the Insured in respect of the same propertyprovided always that the limit of theCompanys liability in any one Period ofInsurance under this extension clause shallbe £10,000 for each Premises

GlassThis Section extends to cover destruction ofor damage to glass (where the Insured isresponsible for its replacement) whetherinternal or external plain or ornamentalattached to and forming part of the Premisesand the cost of boarding up the sameresulting from Theft (within the meaning ofthis Section) or any attempt thereat but onlyif the said glass is not otherwise insured

It is understood that no liability in respect ofdestruction of or damage to such glass shallbe insured unless the said destruction ordamage is accompanied by and directlyforms part of other loss or damage within theprotection of this Section except where suchdestruction of or damage to glass isaccepted by a Police Authority as prima facieevidence of Theft (within the meaning of thisSection) or any attempt thereat

Inflation Protection ClauseThe Company will adjust the Sum Insured inline with suitable indices of costs and therenewal premium for this Section will bebased on the adjusted Sum Insured

Reinstatement Clause(NB Not applicable to motor vehicles andtheir accessories personal effects or stockand materials in trade)

Subject to the following Special Conditionsthe basis upon which the amount payable inrespect of Property Insured under sumsinsured marked R on the Schedule is to becalculated shall be the reinstatement of theproperty lost destroyed or damaged

12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

54

THEFT



i) in any manner suitable to therequirements of the Insured


b) the repair or restoration of property damaged


Special Conditions1. The liability of the Company for the repair

or restoration of property damaged in partonly shall not exceed the amount whichwould have been payable had suchproperty been wholly destroyed

2. If at the time of reinstatement the sumrepresenting 85% of the cost which wouldhave been incurred in reinstating thewhole of the property covered by any itemsubject to this memorandum exceeds itsum insured at the commencement of anyloss or damage the liability of theCompany shall not exceed that proportionof the amount of the loss or damagewhich the said sum insured shall bear tothe sum representing the total cost ofreinstating the whole of such property atthat time

3. No payment beyond the amount whichwould have been payable in the absenceof this memorandum shall be made



c) if the Property Insured at the time ofits loss or damage shall be insured byany other insurance effected by or onbehalf of the Insured which is not uponthe same basis of reinstatement

4. All the terms and conditions of the Policyshall apply

a) in respect of any claim payable under the provisions of thismemorandum except insofar as theyare varied hereby

b) where claims are payable as if this memorandum had not been incorporated

Reinstatement of the Sum Insured afterLoss ClauseIn the event of loss the sum insured by thisSection will automatically be reinstated from the date of the loss unless written notice isgiven to the contrary either by the Company or by the Insured

provided always that in the event ofreinstatement the Insured will

a) pay such necessary premiums as may berequired for such reinstatement from thedate of reinstatement

b) give effect forthwith to any additionalprotective devices for the further securityof the Premises which the Company mayreasonably require

Temporary Removal Clausea) The Property Insured by this Section

(other than stock if insured) is coveredwhilst temporarily removed for cleaningrenovation repair or similar purposeselsewhere and in transit thereto andtherefrom all in Great Britain and Northern Ireland

b) The liability of the Company under thisextension in respect of each item of thisSection for any loss or damage occurringelsewhere than at the within mentionedPremises shall not exceed 10% of the sum insured by the item

12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

55

THEFT

c) This extension does not apply to propertyinsofar as it is otherwise insured nor asregards losses occurring elsewhere thanat the Premises from which the Propertyis temporarily removed to motor vehiclesand motor chassis licensed for normalroad use

d) All the terms and conditions of the Policyexcept insofar as they are varied herebyshall apply as if they had beenincorporated herein

Temporary Removal of Documents ClauseThe insurance of deeds and other documents(including stamps thereon) manuscripts plansand writings of every description computersystem records and books (written andprinted) extends to cover such property for anamount not exceeding 10% of the valuethereof whilst temporarily removed to anypremises not in the Insureds occupation andin transit all in Great Britain and NorthernIreland This extension does not apply toproperty insofar as it is otherwise insured

Special Conditions1. Protective and Locking Devices

It is a condition precedent to any liability on the part of the Company under thisSection that all locks bolts bars windowfastenings and other protective andlocking devices installed in the Premisesbe maintained and put into actualoperation whenever the Premises areclosed for business or left unattended

2. Police NotificationImmediately after the occurrence of anyloss or damage occasioned by riskscovered by this Section shall have cometo the knowledge of the Insured they shallgive notice to the police and take allpractical steps to cause the discovery andpunishment of the guilty person orpersons and to trace and recover the property lost

12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

56

THEFT

Special Clauses

(Clauses 1, 2, 3 and 5 applicable only if the Clause numbers areentered in the Schedule Clause 4 applicable only if referred to in the Schedule)

1. Day One Average

A Subject to the following SpecialConditions the basis upon which theamount payable in respect of the PropertyInsured under sums insured marked DAin the Schedule is to be calculated shallbe the reinstatement of the property lostdestroyed or damaged



i) in any manner suitable to therequirements of the Insured


b) the repair or restoration of propertydamaged


B The Insured having stated in writing theDeclared Value shown in brackets belowthe sum insured for each of the said items the premium has been calculated accordingly

Declared Value means the Insuredsassessment of the cost of reinstatementof the Property Insured arrived at inaccordance with paragraph A(a) at thelevel of costs applying at the inception ofthe Period of Insurance (ignoringinflationary factors which may operatesubsequently) together with in so far asthe insurance by the item provides dueallowance for

a) the additional cost of reinstatement to comply with public authority requirements

b) professional fees

c) debris removal costs

Special Conditions1) At the inception of each Period of

Insurance the Insured shall notify AXAInsurance of the Declared Value for theProperty Insured by each of the saiditem(s) In the absence of such declarationthe last amount declared by the Insuredshall be taken as the Declared Value forthe ensuing Period of Insurance

2) If at the time of loss destruction ordamage the Declared Value of theproperty covered by such item be lessthan the cost of reinstatement (as definedin paragraph B above) at the inception ofthe Period of Insurance then theCompanys liability for any loss destructionor damage shall not exceed thatproportion thereof which the DeclaredValue bears to such cost of reinstatement

3) The liability of the Company for the repairor restoration of property damaged in partonly shall not exceed the amount whichwould have been payable had suchproperty been wholly destroyed

4) No payment beyond the amount whichwould have been payable in the absenceof this memorandum shall be made



c) if the Property Insured at the time ofits loss destruction or damage shall beinsured by any other insuranceeffected by or on behalf of the Insuredwhich is not upon the same basis of reinstatement

12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

57

THEFT

5) All the terms and conditions of this Policyshall apply

a) in respect of any claim payable underthe provisions of this memorandumexcept in so far as they are variedhereby

b) where claims are payable as if thismemorandum had not beenincorporated except that the sum(s)insured shall be limited to 115% of theDeclared Value(s)

2. Stock Declaration ConditionsThe premium in respect of any item in theSchedule where the sum insured is markedD is provisional and subject to adjustment asprovided below

The value of the property on the last day ofeach calendar month shall be declared bythe Insured to AXA Insurance within thirtydays thereafter and if a declaration be not sogiven the Insured shall be deemed to havedeclared the sum insured as the value

On the expiry of each Period of Insurancethe actual premium shall be calculated at therate applicable on the total of the amountsdeclared divided by the number of thedeclarations If the actual premium be greaterthan the provisional premium the Insuredshall pay the difference If it is less thedifference shall be paid to the Insured

In consideration of the insurance not beingreduced by the amount of any loss theInsured shall pay the appropriate extrapremium on the amount of the loss from thedate thereof to the expiry of the Period of Insurance

It is warranted that every insurance on suchproperty covering loss destruction or damageinsured hereby is on a similar basis ofadjustment against declarations

3. Temporary CoverThe first premium has been calculated totake into account the cost of temporary cover(in accordance with particulars lodged withthe Company) pending issue of this Policy

4. Long Term AgreementThe discount shown in the Schedule isallowed off the net premiums on this Sectionin consideration of the Insured having givenan undertaking expiring on the date stated inthe Schedule to offer annually the insuranceunder this Section on the terms andconditions in force at the expiry of eachPeriod of Insurance and to pay the premiumannually in advance it being understood that


b) the Sum Insured may be reduced at anytime to correspond with any reduction in value

The above-mentioned undertaking applies toany Section (or policies) which may be issuedby the Company in substitution for this Sectionand the same discount shall be allowed off thenet premium on any substituted policy (orpolicies) issued by the Company


5. Alarm ClauseIt is a condition precedent to liability underthis Section in respect of loss or damage byTheft following entry or attempted entry to orexit from the Premises by forcible and violentmeans that

a) The Premises are protected by anIntruder Alarm System designed, installedand maintained to British StandardBS4737 or EN50131including, wherestipulated by the Company or the localPolice Authority, Code of Practice DD243.

b) The intruder alarm installation andmaintenance company must be both:

I. A member of an Alarm Inspectoratewhich is accredited by UKAS to EN45011 or EN 45012

and

12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

II. Accredited and operate a QualityManagement System in accordancewith EN ISO 9000.

c) The Intruder Alarm System shall bemaintained in full and efficient workingorder under a contract to provide bothcorrective and preventative maintenance,as per the requirements of BS4737 or EN 50131, with the installing company orsuch other company as agreed with theCompany.

Where remote alarm signalling is requiredthe signal transmission must betransmitted to an Alarm Receiving Centrefully compliant with BS5979:2000 andoperated by a company accredited andoperating to a Quality ManagementSystem in accordance with EN ISO 9000

d) No alteration to or substitution of

i) any part of the Intruder Alarm System

ii) the maintenance contract

iii) the structure of the Premises orchanges to the layout of the Premiseswhich would affect the effectiveness ofthe Intruder Alarm System

iv) the procedures agreed with theCompany for police or any otherresponse to any activation of theIntruder Alarm System

be made without the written agreement ofthe Company

e) The Alarmed Premises shall not be leftunattended without the agreement of the Company

i) unless the Intruder Alarm System isset in its entirety with the means ofcommunication used to transmitsignals (including both alarmtransmission systems for dual

signalling systems) in full operation

ii) if the police have withdrawn theirresponse to alarm activations

f) The Insured shall maintain secrecy ofcodes for the operation of the IntruderAlarm System and detail of such codesand all keys to the Intruder Alarm Systemshall be removed from the Premiseswhen the Premises are left unattended

g) The Insured shall appoint at least two KeyHolders and lodge written details (whichmust be kept up to date) with the alarmcompany and either the Police or theAlarm Receiving Centre

h) In the event of notification of anyactivation of the Intruder Alarm System orinterruption of means of communicationincluding one or both alarm transmissionsystems in respect of dual signallingsystems during any period the IntruderAlarm System is set a Key Holder shallattend the Premises as soon asreasonably possible

i) In the event of the Insured receiving anynotification

i) the police attendance in response toalarm signals/calls from the IntruderAlarm System may be withdrawn orthe level of response reduced ordelayed

ii) from a Local Authority or Magistrateimposing any requirement forabatement of nuisance

iii) that the Intruder Alarm System cannotbe returned to or maintained in fullworking order

the Insured shall advise the Company assoon as possible and comply with anysubsequent requirements stipulated by the Company

THEFT

58

12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

59

DEFINITIONSIntruder Alarm SystemThe component parts including the means ofcommunication used to transmit signals tothe alarm-receiving centre.

Alarmed PremisesThe Premises or those portions of thePremises protected by the Intruder AlarmSystem

Key HolderThe Insured or any person or key holdingcompany authorised by the Insured who isavailable at all times to accept notification offaults or alarm signals to the Intruder AlarmSystem attend and allow access to thePremises

PremisesThe buildings occupied by or under thecontrol of the Insured (unless otherwisestated in the Schedule)

THEFT

12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

60

MONEY SECTION

Part 1 – Money


Definitions

Wherever the following words and phrasesappear in Part 1 of this Section they willhave these meanings

Money Cash bank and currency notes chequespostal orders money orders crossed bankersdrafts current postage stamps unused unitsin franking machines National Savingsstamps and Certificates National Insurancestamps Trading stamps Gift tokens Customerredemption vouchers VAT purchase receiptsCredit Company sales vouchers credit cardcounterfoils travellers tickets phonecards(excluding phonecards held in stock forresale) and insofar as such are not otherwiseinsured Holidays-with-pay stamps andLuncheon Vouchers

Business Hours The Insureds usual office hours and theworking hours (including overtime) duringwhich the Insured or his employeesentrusted with Money are on the Insuredspremises or sites of contracts for thepurposes of the Business

PremisesAny premises occupied by the Insured for thepurposes of the Business including any sitesof contracts

IndemnityThe Company shall

1. indemnify the Insured against

a) loss of Money appertaining to theBusiness occurring whilst

i) in transit

ii) at any of the Insureds Premises

iii) in night safe at a bank

iv) at the residence of any principal orauthorised employee of the Insured

b) loss of or damage to safes andstrongrooms resulting from theft of moneyor any attempt thereat

anywhere in Great Britain Northern Irelandthe Channel Islands or the Isle of Man up tothe Limits of Liability stated in the Scheduleto this Section subject to the limit any oneloss of crossed cheques crossed postalorders crossed money orders crossedbankers drafts National Savings CertificatesCredit Company sales vouchers or receiptsNational Insurance stamps affixed to cardsand VAT purchase receipts being £250,000

2. pay for loss of or damage to clothing andpersonal effects belonging to the Insuredor any employee of the Insured causedby robbery or attempt thereat occurring inthe course of the Business subject to alimit of £250 in respect of any one person

12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

61

ExceptionsPart 1 shall not indemnify the Insured against

a) the first £250 of each and every loss

b) loss from unattended motor vehicles

c) loss arising from fraud or dishonesty ofthe Insureds employees unless such lossbe discovered within fourteen clearworking days of the occurrence

d) loss due to clerical or accounting errors

e) loss insured (or which would but for theexistence of this Section be insured) by any Fidelity Guarantee or Theft Policyexcept for the excess of any amountrecoverable (or which would but for the existence of this Section berecoverable) thereunder

Security WarrantyWhenever Money in transit exceeds £2,500at any one time it is warranted that

a) the Money will be accompanied by notless than two responsible adult persons

b) not more than the amount shown in the Schedule will be carried by any one person

Security of Keys to Safes – Your attentionis drawn to Special Condition 3

MONEY

12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

62

Part 2 – Personal Accident – Assault

Indemnity

If any principal or employee of the insuredwithin the age limits of 16 and 70 yearsinclusive (hereinafter called the InsuredPerson) shall suffer bodily injury sustainedas the result of

a) robbery or attempted robbery or

b) hold-up or attempted hold-up

in the course of the Business (which injuryshall be the sole and direct cause of death ordisablement as described in the Table ofCompensations) the Company will pay theInsured in trust for the Insured Person or inthe event of death for the personalrepresentatives of the Insured Personcompensation upon the basis of and inaccordance with the Table of Compensations

For the purposes of item 4 the compensationpayable shall not exceed the InsuredPersons average weekly remuneration fromthe Insured over the period of 13 weeksimmediately prior to the event giving rise to the bodily injury

Provided always that

a) the Insured Person shall not be entitled tocompensation under more than one of theitems of the Table of Compensations inrespect of the same injury

b) no further liability to make any paymentunder Part 2 in respect of any InsuredPerson shall attach to the Company aftera claim under one of items 1 to 3 hasbeen admitted and become payable

c) weekly compensation under item 4 shallnot become payable until the total amounthas been agreed

d) this extension does not insure againstdeath or disablement

i) arising from or influenced by anyexisting physical defect or infirmity ofthe Insured Person or

ii) where the Insured person is a femaleresulting directly or indirectly frompregnancy or childbirth

Table of Compensations The amountsshown represent one unit

1 Death* £1,000

2 Total loss or permanent £1,000and total loss of use ofone or more limbs*

3 Total and irrecoverable £1,000loss of all sight in oneor both eyes*

4 Total disablement from engaging in or giving attention to the Insured Persons usual profession or occupation – compensation (while the Insured Person shall be so disabled) for a period not exceeding 104 weeks in respect of any one injury calculated from the date thereof at the rate of

5 Reimbursement of incurred medical expenses* up to £250

*Occurring within 2 years of the eventgiving rise to the bodily injury

Table of Compensations

£10 per weeksubject tothis not

exceedingthe Insured

Personsweekly

remunerationfrom theInsured

MONEY

12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

63

MONEY

Special Conditions Applicable to Part 2

1. Notice of every injury in respect of whicha claim is to be made shall be given to theCompany in writing as soon as possiblebut in any case within three months of theevent giving rise to the injury

2. All certificates information and evidencerequired by the Company shall befurnished at the expense of the Insuredand shall be in such form and of suchnature as the Company may prescribeThe Insured Person as often as requiredshall submit to medical examination onbehalf of the Company at its ownexpense in respect of any alleged bodilyinjury

3. The Company shall in the case of death of the Insured Person be entitled to havea post-mortem examination at its own expense

Exclusions Applicable to this Section


a) loss destruction or damage occasionedby war invasion act of foreign enemyhostilities (whether war be declared ornot) civil war rebellion revolutioninsurrection or military or usurped power

b) loss or destruction of or damage to anyproperty whatsoever or any loss orexpense whatsoever resulting or arisingtherefrom or any consequential loss orany legal liability of whatsoever naturedirectly or indirectly caused by orcontributed to by or arising from

i) ionising radiations or contamination byradioactivity from any nuclear fuel orfrom any nuclear waste from thecombustion of nuclear fuel

ii) the radioactive toxic explosive or otherhazardous properties of any explosivenuclear assembly or nuclearcomponent thereof

c) loss destruction or damage in NorthernIreland occasioned by or happeningthrough or in consequence of

a) civil commotion

b) Terrorism as defined in d) belowTerrorism Exclusion Clause

d) Terrorism Exclusion clause

Loss damage cost or expense of whatsoevernature directly or indirectly caused byresulting from or in connection with :

1. Any act of Terrorism regardless of any othercause or event contributing concurrently orin any other sequence to the loss

2. Any action taken in controlling preventingsuppressing or in any way relating to anyact of Terrorism



Definition - Terrorism

For the purpose of this exclusion an act ofTerrorism shall mean an act including but notlimited to the use of force or violence and orthreat thereof of any person or group[s] ofpersons whether acting alone or on behalf ofor in connection with any organisation[s] orgovernment[s] committed for politicalreligious ideological or similar purposesincluding the intention to influence anygovernment and or put the public or anysection of the public in fear

In any action suit or other proceedings wherethe Company alleges that by reason of theprovisions of this exclusion any lossdestruction or damage is not covered by thisSection the burden of proving that such lossdestruction or damage is covered shall beupon the Insured

12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

64

MONEY

Special Conditions Applicable to this Section

1. If the premium for this Section has beencalculated on an estimate furnished bythe Insured and stated in the Schedule tothis Section the Insured shall keep anaccurate record of all particulars relativethereto and shall at all reasonable timesallow the Company to inspect such recordWithin one month from the expiry of eachPeriod of Insurance the Insured shallsupply the Company with a correctaccount of the amount of notes and coinsin transit during the period and thepremium for such period shall thereuponbe adjusted and the difference paid by orallowed to the Insured as the case maybe subject to the retention by theCompany of 75% of the estimatedpremium for the period being adjusted or£75 whichever is the greater

2. The Insured shall take all reasonableprecautions for the safety of the moneyand immediately upon having knowledgeof any event giving rise or likely to give riseto a claim under this Section shall

a) give immediate notice to the Policeand to the Company and take allpracticable steps to discover the guiltyperson or persons and to recover themoney lost

b) give immediate notice to the InlandRevenue of any loss of stampedNational Insurance cards

c) deliver to the Company within fourteendays from the date on which the eventshall have come to his knowledge adetailed statement in writing of the loss

d) furnish all explanations vouchers proof of ownership and other evidence tosubstantiate the claim and the Company may if it deem necessaryrequire corroborative evidence of thestatements of the Insured or of any of the Insureds employees

3. The Insured shall keep a daily record ofthe amount of money contained in safesor strongrooms and such record shall bedeposited in a secure place other thanthe said safes or strongrooms and beproduced as documentary evidence insupport of a claim under this Section Thekeys of safes or strongrooms shall not beleft on the premises out of BusinessHours unless the premises are stilloccupied by the Insured or any authorisedemployee of the Insured in which eventsuch keys if left on the premises shall bedeposited in a secure place not in thevicinity of safes or strongrooms

4. Nothing in General Condition 7 shallimpose on the Company any liability fromwhich but for that Condition it would havebeen relieved under Exception (d) of theexceptions to Part 1 of this Section

12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

65

MONEY

Special Clauses

(Clause 1 and 3 applicable only if the Clause number is entered inthe Schedule Clause 2 applicable only if referred to in the Schedule)

1. Temporary Cover

The first premium has been calculated totake into account the cost of temporary cover(in accordance with particulars lodged withthe Company) pending issue of this Policy


The discount shown in the Schedule isallowed off the net premiums on this Sectionin consideration of the Insured having givenan undertaking expiring on the date stated in the Schedule to offer annually theinsurance under this Section on the termsand conditions in force at the expiry of each Period of Insurance and to pay thepremium annually in advance it beingunderstood that –


b) where appropriate the sum insured mayhe reduced at any time to correspondwith any reduction in value

The above-mentioned undertaking applies toany Section which may be issued by theCompany in substitution for this Section andthe same discount shall be allowed off thenet premiums on any substituted Sectionissued by the Company as aforesaid


3. Alarm Clause

It is a condition precedent to liability underthis Section in respect of loss or damagefollowing entry or attempted entry to or exitfrom the Premises by forcible and violentmeans that

a) The Premises are protected by an Intruder Alarm System designed, installedand maintained to British Standard BS4737 or EN50131 including, where stipulated by the Company or the local Police Authority, Code of Practice DD243

b) The intruder alarm installation and maintenance company must be both:

I. A member of an Alarm Inspectorate which is accredited by UKAS to EN 45011 or EN 45012

and

II. Accredited and operate a Quality Management System in accordance with EN ISO 9000

c) The Intruder Alarm System shall be maintained in full and efficient working order under a contract to provide both corrective and preventative maintenance,as per the requirements of BS4737 or EN50131, with the installing company orsuch other company as agreed with theCompany Where remote alarm signallingis required the signal transmission mustbe transmitted to an Alarm ReceivingCentre fully compliant with BS5979:2000and operated by a company accreditedand operating to a Quality ManagementSystem in accordance with EN ISO 9000

12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

66




iii) the structure of the Premises or changes to the layout of the Premises which would affect the effectiveness ofthe Intruder Alarm System

iv) the procedures agreed with the Company for police or any other response to any activation of the Intruder Alarm System

be made without the written agreement of the Company

e) The Alarmed Premises shall not be left unattended without the agreement of the Company

i) unless the Intruder Alarm System is set in its entirety with the means of communication used to transmit signals( including both alarm transmission systems for dual signalling systems ) in full operation

ii) if the police have withdrawn their response to alarm activations

f) The Insured shall maintain secrecy of codes for the operation of the Intruder Alarm System and detail of such codes and all keys to the Intruder Alarm System shall be removed from the Premises when the Premises are left unattended

g) The Insured shall appoint at least two Key Holders and lodge written details(which must be kept up to date) with thealarm company and either the Police orthe Alarm Receiving Centre

h) In the event of notification of any activation of the Intruder Alarm System orinterruption of means of communication including one or both alarm transmission systems in respect of dual signalling systems during any period the IntruderAlarm System is set a Key Holder shallattend the Premises as soon asreasonably possible

i) In the event of the Insured receiving any notification

i) the police attendance in response to alarm signals/calls from the Intruder Alarm System may bewithdrawn or the level of responsereduced or delayed

ii) from a Local Authority or Magistrate imposing any requirement for abatement of nuisance

iii) that the Intruder Alarm System cannot be returned to or maintained in fullworking order

the Insured shall advise the Company assoon as possible and comply with any subsequent requirements stipulated by the Company

Definitions

Intruder Alarm SystemThe component parts including the means of communication used to transmit signals to the alarm-receiving centre

Alarmed PremisesThe Premises or those portions of thePremises protected by the Intruder Alarm System

Key HolderThe Insured or any person or key holdingcompany authorised by the Insured who isavailable at all times to accept notification offaults or alarm signals to the Intruder AlarmSystem attend and allow access to the Premises


MONEY

12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

67

EMPLOYERS LIABILITY SECTION


1. Definitions

Wherever the following words and phrasesappear in this Section they will always havethese meanings

Injurybodily injury death disease illness or nervous shock

Businessthe business stated in the Scheduleconducted by the Insured at or from premises in Great Britain NorthernIreland the Channel Islands or the Isle of Man including

a) the provision and management ofcanteen sports social or welfareorganisations for the benefit ofEmployees and fire security first aidmedical and ambulance services

b) private work undertaken with the priorconsent of the Insured by Employees for any director or senior official of the Insured

c) the ownership maintenance and repair of premises within such territories

Employeea) any person under a contract of service or

apprenticeship with the Insured

b) any person who is hired to or borrowed bythe Insured

c) any person engaged in connection with awork experience or training scheme

d) any labour master or person supplied by him

e) any person engaged by labour only sub-contractors

f) any self-employed person working on alabour only basis under the control orsupervision of the Insured

g) any voluntary helper

while working for the Insured in connectionwith the Business

Territorial Limitsa) anywhere within Great Britain Northern

Ireland the Channel Islands or the Isle of Man other than offshore

b) elsewhere in the world other than offshorein connection with temporary visitsundertaken in the course of the Businessby any person normally resident in theterritories described in (a) above

Offshorefrom the time of embarkation onto aconveyance at the point of final departurefrom land to any offshore rig or any offshoreplatform and until such time ofdisembarkation from a conveyance onto land upon return from any offshore rig or anyoffshore platform

2. Interpretation

Additional Persons Insureda) In the event of the death of any person

entitled to indemnity under this Sectionthe Company will indemnify in the termsof this Section the deceaseds legalpersonal representatives but only inrespect of liability incurred by suchdeceased person

b) At the request of the Insured theCompany will indemnify in the terms ofthis Section

a) i) any principal in respect of liabilityarising out of the performance bythe Insured of any agreemententered into by the Insured with theprincipal to the extent required bysuch agreement

ii) any director of the Insured orEmployee in respect of liabilityarising in connection with theBusiness

provided that the Insured would havebeen entitled to indemnity under thisSection if the claim had been madeagainst the Insured

12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

68

EMPLOYERS LIABILITY

b) i) any officer committee or member ofthe Insureds canteen sports socialor welfare organisations firesecurity first aid medical orambulance services in theirrespective capacities as such

ii) any director or senior official of theInsured in respect of private workundertaken by any Employee forsuch director or senior official

provided that

i) each such person shall asthough he were the Insuredobserve fulfil and be subject tothe terms of this Section insofaras they can apply

ii) the Company shall retain the soleconduct and control of all claims

3. Indemnity

The Company will indemnify the Insuredagainst all sums that the Insured shallbecome legally liable to pay as damagestogether with costs and expenses shownbelow in respect of Injury sustained withinthe Territorial Limits during the Period ofInsurance by any Employee arising out of hisemployment by the Insured in the course ofthe Business

Limit of Indemnity The liability of the Company under thisSection for damages costs and expensespayable in respect of any one claim againstthe Insured or series of claims against theInsured arising out of one event shall notexceed the amount stated in the Schedule tothis Section as the Limit of Indemnity

Costs and expenses shall be deemed to mean –

1) costs and expenses of claimants forwhich the Insured is legally liable

2) other costs and expenses incurred withthe Companys written consent in respectof any claim which may be the subject ofindemnity under this Section

3) solicitors fees incurred with theCompanys written consent for

a) defence in any Court of SummaryJurisdiction of any proceedingsbrought against the Insured in respectof breach or alleged breach of anystatutory duty resulting in Injury

b) representation at a Coroners Court orFatal Accident Inquiry in respect of anydeath which may be the subject ofindemnity under this Section

4) legal costs and expenses incurred by theInsured and at the request of the Insuredany director or Employee with theCompanys written consent and costsawarded against the Insured or director orEmployee arising in connection with aprosecution (including an appeal againstany conviction resulting from aprosecution) as a result of an allegedoffence occurring during the Period ofInsurance under the Health and Safety atWork etc Act 1974 or similar safetylegislation of Great Britain NorthernIreland the Channel Islands or the Isle of Man provided that

a) the proceedings relate to the healthsafety or welfare of Employees

b) the Company will not indemnify theInsured in respect of

i) fines or penalties

ii) costs and expenses insured by any other policy

12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

69

EMPLOYERS LIABILITY

4. Exclusions

Radioactive ContaminationSo far as concerns the liability of anyprincipal or liability assumed by the Insuredunder agreement and which would not have attached in the absence of suchagreement this Section shall not apply to any liability of whatsoever nature directly or indirectly caused by or contributed to by or arising from

a) ionising radiations or contamination byradioactivity from any nuclear fuel or fromany nuclear waste from the combustion ofnuclear fuel

b) the radioactive toxic explosive or otherhazardous properties of any explosivenuclear assembly or nuclear component thereof

VehiclesThis Section does not provide an indemnityin respect of any liability for whichcompulsory motor insurance or security isrequired under the Road Traffic Act 1988 asamended by the Motor Vehicles (CompulsoryInsurance) Regulations 1992 and the RoadTraffic (Northern Ireland) Order 1981 asamended by the Motor Vehicles (CompulsoryInsurance) Regulations (Northern Ireland)1993 or any other compulsory Road TrafficAct legislation

5. Extensions

Compensation for Court AttendanceIn the event of the undermentioned personsattending court as a witness at the request ofthe Company in connection with a claim inrespect of which the Insured is entitled toindemnity under this Section the Companywill provide compensation to the Insured atthe following rates per day for each day onwhich attendance is required

a) any director or partner of the Insured £100

b) any Employee £50

Unsatisfied Court JudgementsIn the event of Injury to an Employeesustained during the Period of Insurance andarising out of his employment by the Insuredin the course of the Business which results ina judgement for damages being obtained bysuch Employee or his personalrepresentatives and which remainsunsatisfied in whole or in part six monthsafter the date of such judgement theCompany will at the request of the Insuredpay to the Employee or his personalrepresentatives the amount of any suchdamages and any awarded costs to theextent that they remain unsatisfied provided that

a) the judgement for damages is obtained

i) in a court of law within Great BritainNorthern Ireland the Channel Islandsor the Isle of Man

ii) against a company partnership orindividual other than the Insuredconducting a business at or frompremises within the territoriesdescribed in a) i) above

b) there is no appeal outstanding

c) if any payment is made under the terms of this extension the Employee orthe personal representatives of theEmployee shall assign the judgement tothe Company

12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

70

EMPLOYERS LIABILITY

Special Conditions

1. Observance of Terms

It is a condition precedent to any liability onthe part of the Company under this Sectionthat the terms hereof so far as they relate toanything to be done or complied with by theInsured shall be duly and faithfully observed

2. Material Facts

The Insured shall give immediate notice tothe Company of any alteration in risk whichmaterially affects this insurance

3. Reasonable Precautions

The Insured shall

a) take all reasonable precautions to preventoccurrences which may give rise toliability under this Section

b) take all reasonable steps to comply withstatutory requirements obligations and regulations imposed byany authority

c) forthwith make good or remedy anydefect or danger which becomesapparent or take such additionalprecautions as the circumstances may require

4. Notification of Claims

In the event of any occurrence which maygive rise to a claim under this Section theInsured shall immediately

a) give written notice with full particulars tothe Company

b) forward to the Company upon receipt every letter claim writ summons or process

c) notify the Company of any knowledge ofimpending prosecution inquest fatalaccident or ministry inquiry

5. Claims Control

a) no admission offer promise payment orindemnity shall be made or given by or onbehalf of the Insured without the writtenconsent of the Company

b) the Company shall be entitled to takeover and conduct in the name of theInsured the defence or settlement of anyclaim or to prosecute in the name of theInsured at its own expense and for itsown benefit any claim for indemnity ordamages or otherwise

c) the Company shall have full discretion inthe conduct of any proceedings and in thesettlement of any claim

d) the Insured shall give all information andassistance the Company may require

6. Other Insurances

The Company will not indemnify the Insuredin respect of liability which is insured by orwould but for the existence of this Section beinsured by any other policy except in respectof any excess beyond the amount payableunder such other policy or which would havebeen payable under such other policy hadthis insurance not been effected

12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

71

EMPLOYERS LIABILITY

7. Premium Adjustment

If any part of the premium has beencalculated on estimates the Insured shallwithin one month from the expiry of eachPeriod of Insurance furnish such particularsand information as the Company may requireand shall at the request of the Companyprovide an auditors certificate in supportthereof The premium for such period shallthen be adjusted subject to the Companyretaining 75% of the premium paid for thePeriod of Insurance which corresponds tothe period which is being adjusted Shouldthe Insured fail to supply such particulars theCompany shall be entitled to charge areasonable additional premium in respect ofthat Period of Insurance

8. Right of Recovery

This Section is deemed to be in accordancewith the provisions of any law relating tocompulsory insurance of liability toemployees in Great Britain Northern Irelandthe Channel Islands or the Isle of Man butthe Insured shall repay to the Company allsums paid by the Company which theCompany would not have been liable to paybut for the provisions of such law

THE GENERAL CONDITIONS OF THEPOLICY SHALL NOT APPLY TO THISSECTION OTHER THAN THOSE HEADEDINSTALMENTS AND CANCELLATION

12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

72

PUBLIC AND PRODUCT LIABILITY SECTION


1. Definitions


Injury bodily injury death disease illness or nervous shock

Businessthe business stated in the Scheduleconducted by the Insured at or from premises in Great Britain Northern Ireland the Channel Islands or the Isle of Man including



c) the ownership maintenance and repair ofsuch premises within such territories



b) any person who is hired to or borrowed by the Insured

c) any person engaged in connection with a work experience or training scheme


e) any person engaged by labour only sub-contractors





Ireland the Channel Islands or the Isle ofMan other than Offshore

b) elsewhere in the world other thanOffshore in connection with temporaryvisits undertaken in the course of theBusiness by any person normally residentin the territories described in a) above

Offshorefrom the time of embarkation onto aconveyance at the point of final departurefrom land to any offshore rig or any offshoreplatform and until such time ofdisembarkation from a conveyance onto land upon return from any offshore rig or any offshore platform

Products Supplieda) products including containers packaging

or instructions sold or supplied

b) work or services undertaken includinggoods or materials used

by or on behalf of the Insured in the courseof the Business

12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

73

PUBLIC AND PRODUCT LIABILITY

2. Interpretation

Additional Persons Insureda) In the event of the death of any person

entitled to indemnity under this Sectionthe Company will indemnify in the termsof this Section the deceaseds legalpersonal representatives but only inrespect of liability incurred by suchdeceased person

b) At the request of the Insured theCompany will indemnify in the terms of this Section


ii) any director of the Insured or Employee in respect of liability arising in connection with the Business

provided that the Insured would havebeen entitled to indemnity under thisSection if the claim had been madeagainst the Insured

b) i) any officer committee or member ofthe Insureds canteen sports social orwelfare organisations fire security firstaid medical or ambulance services intheir respective capacities as such


provided that

i) each such person shall asthough he were the Insuredobserve fulfil and be subject tothe terms of this Section in so far as they can apply

ii) the Company shall retain thesole conduct and control of all claims

iii) where the Company is requiredto indemnify more than oneparty the total amount ofindemnity payable to all partiesin respect of damages shall notexceed the Limit of Indemnity

Cross LiabilitiesIf more than one Insured is referred to in theSchedule this Section shall apply to eachone as if a separate policy had been issuedto each (provided that the total amount ofindemnity payable to all parties in respect of damages shall not exceed the Limit of Indemnity)

12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

74

Part 1 – Public Liability

Indemnity

The Company will indemnify the Insuredagainst all sums that the Insured shallbecome legally liable to pay as damages andcosts and expenses of claimants in respectof accidental

a) Injury to any person

b) loss of or damage to material property

c) nuisance or trespass obstruction loss oramenities or interference with any right ofway light air or water

d) wrongful arrest detention imprisonment oreviction of any person or invasion of theright of privacy

occurring within the Territorial Limits during the Period of Insurance and happening in connection with the Business

Limit of Indemnity

The liability of the Company for all damagespayable to any claimant or number ofclaimants as a result of any one occurrenceor all occurrences of a series consequentupon or attributable to one source or originalcause shall not exceed the amount stated inthe Schedule to this Section as the Limit ofIndemnity for Part 1

Costs

The Company will in addition

pay all other costs and expenses incurredwith its written consent in respect of anyclaim which may be the subject of indemnityunder this Part

pay solicitors fees incurred with its writtenconsent for

a) defence in any Court of SummaryJurisdiction of any proceedings broughtagainst the Insured in respect of breach oralleged breach of any statutory dutyresulting in Injury

b) representation at a Coroners Court orFatal Accident Inquiry in respect of any death

which may be the subject of indemnity underthis Part

indemnify the Insured and at the request ofthe Insured any director or Employee inrespect of legal costs and expenses incurredwith the Companys written consent andcosts awarded against the Insured or directoror Employee arising in connection with aprosecution (including an appeal against anyconviction resulting from a prosecution) as aresult of an alleged offence occurring duringthe Period of Insurance under the Health andSafety at Work etc Act 1974 or similar safetylegislation of Great Britain Northern Irelandthe Channel Islands or the Isle of Manprovided that

a) the proceedings relate to the health safety or welfare of persons other than Employees



ii) costs and expenses insured by anyother policy


12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

75


Exclusions

The indemnity will not apply to legal liability

1. Aviation and Craftarising out of

a) work in or on aircraft

b) work in or on airport or aerodromerunways manoeuvring areas or apronsor those parts of airports oraerodromes to which aircraft have access

c) the ownership possession or use by oron behalf of the Insured of any

i) aircraft

ii) watercraft (other than watercraft not exceeding 8 metres in length or any hand-propelled boat or pontoon)

2. Vehiclesarising out of the ownership possession oruse by or on behalf of the Insured of anymechanically propelled vehicle or trailerattached thereto in circumstances wherecompulsory insurance or security is requiredor where insurance is provided by another policy

3. Products Suppliedin respect of Injury or loss of or damage toproperty caused by or in connection with anyProducts Supplied which have ceased to bein the custody or control of the Insured otherthan food or drink provided as a service atthe Insureds premises to Employees or visitors

12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

76

Part 2 - Product Liability

Indemnity

The Company will indemnify the Insuredagainst all sums that the Insured shallbecome legally liable to pay as damages andcosts and expenses of claimants in respectof accidental



occurring anywhere in the world during thePeriod of Insurance and caused by anyProducts Supplied

Limit of Indemnity

The liability of the Company for all damagespayable as a result of all occurrences duringany one Period of Insurance shall notexceed the amount stated in the Schedule to this Section as the Limit of Indemnity for Part 2

Costs

The Company will in addition

pay all other costs and expenses incurredwith its written consent in respect of anyclaim which may be the subject of indemnityunder this Part

pay Solicitors fees incurred with its writtenconsent for

a) defence in any Court of SummaryJurisdiction of any proceedings broughtagainst the Insured in respect of breachor alleged breach of any statutory dutyresulting in Injury

b) representation at a Coroners Court orFatal Accident Enquiry in respect of any death

which may be the subject of indemnityunder this Part

Indemnify the Insured in respect of legalcosts and expenses incurred with theCompanys written consent in the defence ofany criminal proceedings brought or in anappeal against conviction arising from suchproceedings in respect of a breach of Part IIof the Consumer Protection Act 1987provided that

a) the proceedings relate to an offencealleged to have been committed in thecourse of the Business during the Periodof Insurance




Exclusions


1. Products under Insureds Controlin respect of Injury or loss of or damageto property caused by or in connectionwith any Products Supplied which are inthe custody or control of the Insured

2. Aviation Productsin respect of Injury or loss of or damageto property caused by or in connectionwith any Products Supplied which to theknowledge of the Insured are for use in oron any aircraft and which are critical tothe safety or airworthiness of the aircraft

3. Export to USA or Canadain respect of Injury or loss of or damage toproperty caused by or in connection withany Products Supplied which to theknowledge of the Insured are directly orindirectly exported to the United States ofAmerica or Canada


12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

77

Extensions

Compensation for Court Attendance

In the event of any of the undermentionedpersons attending court as a witness at therequest of the Company in connection with aclaim in respect of which the Insured isentitled to indemnity under this Section theCompany will provide compensation to theInsured at the following rates per day foreach day on which attendance is required



Rented Premises

General Exclusion 2 b) shall not apply topremises leased let rented hired or lent tothe Insured provided that the indemnity willnot apply to legal liability in respect of

a) loss or damage under agreement unless liability would have attached tothe Insured in the absence ofsuch agreement

b) loss of or damage to premises caused byfire or any other peril against which atenancy or other agreement stipulatesthat insurance shall be effected by or onbehalf of the Insured

c) the first £250 of each and everyoccurrence of loss or damage causedotherwise than by fire or explosion

Defective Premises Act

Legal liability in respect of Injury loss ordamage arising solely by reason of Section 3of the Defective Premises Act 1972 or Article5 of the Defective Premises (NorthernIreland) Order 1975 in respect of anypremises previously owned for purposespertaining to the Business and sincedisposed of by the Insured is included withinthe terms of the indemnity provided in Part 1of this Section but indemnity will not apply ifthe Insured is entitled to indemnity under anyother insurance

Contingent Motor Liability

Notwithstanding Exclusion 2 of Part 1 theCompany will indemnify the Insured in theterms of Part 1 against legal liability inrespect of Injury loss or damage arising outof the use in connection with the Business ofany motor vehicle not owned or provided bythe Insured


a) in respect of loss of or damage to anysuch vehicle or to goods conveyedtherein or thereon

b) in respect of Injury loss of or damagearising while such vehicle is being

i) driven by the Insured

ii) driven with the general consent of theInsured or of his representative by anyperson who to the knowledge of theInsured or his representative does nothold a licence to drive a vehicle unlesssuch person has held and is notdisqualified from holding such a licence

iii) used elsewhere than in Great BritainNorthern Ireland the Channel Islandsor the Isle of Man

c) in respect of which the Insured is entitledto indemnity under any other insurance


12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

78


Overseas Personal Liability

The Company will indemnify the Insured and if the Insured so requests any director or partner of the Insured or any Employee or spouse of such person against legalliability incurred in a personal capacity whilst temporarily outside Great BritainNorthern Ireland the Channel Islands or the Isle of Man


a) arising out of the ownership or occupationof land or buildings

b) in respect of which any person referred toabove is entitled to indemnity under anyother insurance

Subject otherwise to the terms Exclusions &Conditions of this Section

12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

79



General Exclusions

1. Injury to Employees

in respect of Injury to any Employee

2. Property under Insureds Control

in respect of loss of or damage to

a) property belonging to the Insured

b) property which is leased let rented hiredor lent to or which is the subject of abailment to the Insured

3. Rectification Costs

a) in respect of the cost or value of anyProducts Supplied or replacement repairremoval rectification or reinstatementthereof where legal liability arises from adefect in or the unsuitability of suchProducts Supplied

b) for any costs incurred in recalling ormodifying any Products Supplied

c) for the costs of remedying any defect oralleged defect in land or premises sold ordisposed of by the Insured or for anyreduction in the value thereof

4. Liability under Agreement

assumed by the Insured under agreementunless the conduct and control of claims isvested in the Company but indemnity shallnot in any event apply to

a) liquidated damages fines or penalties

b) legal liability which attaches by virtue ofan express warranty indemnity orguarantee given or entered into by theInsured in connection with any ProductsSupplied and which would not haveattached in the absence of such warrantyindemnity or guarantee

5. War Risks

arising from any consequence of warinvasion act of foreign enemy hostilities(whether war be declared or not) civil warrebellion revolution insurrection or military or usurped power

6. Radioactive Contamination

of whatsoever nature directly or indirectlycaused by or contributed to by or arising from


b) the radioactive toxic explosive or other hazardous properties of anyexplosive nuclear assembly or nuclear component thereof

12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

80


General Exclusions and Limitations

1. Pollution or Contamination

a) this Section excludes all liability in respectof Pollution or Contamination other thancaused by a sudden identifiableunintended and unexpected incidentwhich takes place in its entirety at aspecific time and place during the Periodof Insurance

All Pollution or Contamination whicharises out of one incident shall bedeemed to have occurred at the timesuch incident takes place

b) The Liability of the Company for allcompensation payable under Parts 1 and2 of this Section in respect of all Pollutionor Contamination which is deemed tohave occurred during the Period ofInsurance shall not exceed in theaggregate the amount shown in theSchedule to this Section as the Limit ofIndemnity for Part 1

c) For the purpose of this Exclusion andLimitation Pollution or Contamination shallbe deemed to mean

i) all Pollution or Contamination ofbuildings or other structures or ofwater or land or the atmosphere and

ii) all loss or damage or injury directly orindirectly caused by such Pollution or Contamination

2. USA and Canada

In so far as this Section applies to legalliability arising in the United States ofAmerica or Canada or if an action fordamages is commenced therein or in anysubsequent action in connection therewith isbrought elsewhere in the world

a) the liability of the Company in respect ofall damages payable together with thecosts and expenses of claimants and anyother costs and expenses incurred withthe Companys written consent shall notexceed the Limit of Indemnity

b) the indemnity will not apply in respect ofpunitive damages and/or exemplarydamages and/or aggravated damagesand/or any additional damages resultingfrom the multiplication of compensatorydamages or by way of fines or penalties

12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

81


Fire Precautions Condition

It is a condition precedent to liability underthis Section that in respect of use away fromthe Insureds premises of blow lamps blowtorches flame guns hot air guns electric oxy-acetylene or other welding or cuttingequipment and angle grinders (incircumstances where sparks are emitted) theundernoted precautions will be complied withon each occasion –

Blow lamps blow torches flameguns and hot air guns

i) the area in which work is to be carried outto be examined and combustible propertywithin the vicinity of the work eitherremoved or as far as practicable coveredby non-combustible materials

ii) suitable fire extinguishing appliances tobe kept available for immediate use at thepoint of work or as near as is practicable

iii) blow- lamps blow torches and flame gunsnot to be lighted until required for use andextinguished immediately after use

iv) lighted blow lamps torches and flameguns not to be left unattended

v) hot air guns to be switched off when unattended

vi) upon completion of each period of work athorough fire safety check to be made ofthe vicinity of the work

Electric oxy-acetylene or otherwelding or cutting equipment andangle grinders

i) the area in which the work is to be carriedout including adjoining shafts or openingsand the area on the other side of any wallor partition to be inspected to see whetherany combustible property other than theproperty to be worked upon is in danger of ignition either directly or by conductionof heat

ii) all combustible property to be removed toa distance of not less than 6 metres fromthe point of work and property whichcannot be moved to be covered and fullyprotected by overlapping sheets of non-combustible material or equivalent protection

iii) the Insured shall arrange for a personwho is competent in the use of fireextinguishing appliances to work inconjunction with the operative using theequipment to act as a firewatcher and toremain in attendance at all times untillighted flame equipment is extinguished

iv) suitable fire extinguishing appliances tobe made available for immediate use atthe point of work

v) gas cylinders not in use to be keptoutside the building in which the work istaking place where practicable but in anyevent at least 15 metres from the point ofapplication of the heat

vi) upon completion of each period of work athorough fire safety check to be made ofall areas referred to in paragraph i) above

The fire safety check to be undertaken atregular intervals for a period of at leastone hour after completion

12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

82

Special Conditions



2. Material Facts



The Insured shall


b) take all reasonable steps to comply withstatutory requirements obligations andregulations imposed by any authority





b) forward to the Company upon receiptevery letter claim writ summons or process


5. Claims Control





6. Discharge of Liability

The Company may pay the Limit ofIndemnity or any lesser sum for which anyclaim or claims against the Insured can besettled and the Company shall be under nofurther liability in respect of such claim orclaims except for costs or expenses incurredprior to the date of such payment

7. Other Insurances



12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

83


If any part of the premium has beencalculated on estimates the Insured shallwithin one month from the expiry of eachPeriod of Insurance furnish such particularsand information as the Company may requireand shall at the request of the Companyprovide an auditors certificate in supportthereof The premium for such period shallthen be adjusted subject to the Companyretaining 75% of the premium paid for thePeriod of Insurance which corresponds tothe period which is being adjusted Shouldthe Insured fail to supply such particulars theCompany shall be entitled to charge areasonable additional premium in respect ofthat Period of Insurance

9. Fraud

If a claim is fraudulent in any respect or iffraudulent means are used by the Insured orby anyone acting on their behalf to obtainany benefit under this Policy all benefit underthis Policy shall be forfeited



12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

84

SELECTED ALL RISKS SECTION

1. Definitions

Wherever the following words and phrasesappear in this Section they will always havethese meanings –

PremisesThe premises shown in the Schedule

Great BritainAnywhere in Great Britain Northern Irelandthe Channel Islands or the Isle of Man

EuropeAnywhere in Europe

WorldwideAnywhere in the World

2. Indemnity

The Company shall indemnify the Insuredagainst loss or damage to any of theProperty shown in the Schedule by anyaccident or misfortune of a fortuitous natureoccurring at the location shown in theSchedule for an amount in respect of

a) Property lost or stolen – such sum asshall be equal to the intrinsic value of theProperty at the time of the loss

b) damage to Property – such sum as shallbe sufficient to make good the damage

not exceeding in respect of any one item thesum insured thereon nor exceeding in thewhole the total sum insured adjusted inaccordance with the Inflation ProtectionClause if in force

3. Exclusions


a) the first £250 of each claim

b) theft or any attempt thereat from thePremises not involving entry to or exittherefrom by forcible and violent means

c) loss or damage arising from wear andtear or from any process of cleaning orrestoring or adjusting or repairing

d) loss or damage arising from orattributable to the action of light oratmosphere moths parasites or vermin

e) loss by official confiscation or detention

f) loss or damage to any electrically drivenmachine or apparatus directly caused byits own overrunning short-circuiting self-heating or by the application ofexcessive electrical energy or mechanical derangement not arising fromexternal impact

g) loss or damage to any component part ofany item insured in the Schedule whilesuch part is removed from its normalposition in the item

h) loss or destruction or damage directlyoccasioned by pressure waves caused byaircraft or other aerial devices travelling atsonic or supersonic speeds

i) loss or destruction or damage occasionedby war invasion act of foreign enemyhostilities (whether war be declared ornot) civil war rebellion revolutioninsurrection or military usurped power

j) loss or destruction of or damage to anyproperty whatsoever or any loss orexpense whatsoever resulting or arisingtherefrom or any consequential loss orany legal liability of whatsoever naturedirectly or indirectly caused by orcontributed to by or arising from


12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

85



k) loss or destruction of or damage to anycomputer or other equipment orcomponent or system or item whichprocesses stores transmits or retrievesdata or any part thereof whether tangibleor intangible (including but withoutlimitation any information or programs orsoftware) and whether the property of theInsured or not where such lossdestruction or damage is caused byprogramming or operator error Virus orSimilar Mechanism or Hacking includingwhere this results from the actions ofmalicious persons other than thieves


Definitionsi) Virus or Similar Mechanism shall mean

program code programming instruction orany set of instructions intentionallyconstructed with the ability to damageinterfere with or otherwise adverselyaffect computer programs data files oroperations whether involving self-replication or not

This definition of Virus or Similar Mechanismincludes but is not limited to Trojan horsesworms and logic bombs

ii) Hacking shall mean unauthorised accessto any computer or other equipment orcomponent or system or item whichprocesses stores transmits or retrieves data

4. Clauses

Average ClauseIf at the time of loss or damage the value ofthe Property Insured under any item isgreater than its sum insured the Insuredshall be considered as being his own insurerfor the difference and shall bear a rateableshare of the loss accordingly

Inflation Protection ClauseThe Company will adjust the sum insured inline with suitable indices of costs and therenewal premium for this Section will bebased on the adjusted sum insured

Reinstatement ClauseWhere the sum insured on the Schedule ismarked R the basis of claims settlement willbe the cost of repair or the currentreplacement value without deduction forwear and tear provided that all necessaryrepairs or replacements are carried outwithout delay

Terrorism Exclusion ClauseThis section does not cover

Loss damage cost or expense of whatsoevernature directly or indirectly caused byresulting from or in connection with



3. civil commotion occurring in Northern Ireland



SELECTED ALL RISKS

12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

86

Definition – TerrorismFor the purpose of this exclusion an act ofTerrorism shall mean an act including but notlimited to the use of force or violence and orthreat thereof of any person or group(s) ofpersons whether acting alone or on behalf ofor in connection with any organisation(s) orgovernment(s) committed for politicalreligious ideological or similar purposesincluding the intention to influence anygovernment and or put the public or anysection of the public in fear

In respect of private house(s) or contentsthereof insured in the name of an individualthis Terrorism Exclusion only applies to lossdamage cost or expense caused by nuclearchemical or biological contaminationresulting directly or indirectly from Terrorism

5. Special Condition

Police NotificationThe Insured shall give immediate notificationto the Police of loss or damage by theft ormalicious means

6. Date Recognition Exclusion

This Section does not cover loss or damagedirectly or indirectly caused by or contributedto by or arising from the failure of anycomputer or other equipment data processingservice product microchip micro processorintegrated circuit embedded chip or similardevice computer software program orprocess or any other electronic system or anydesign or advice in connection with any of theforegoing irrespective of ownershippossession or use and whether occurringbefore during or after the Year 2000

i) correctly to recognise any date as its truecalendar date

ii) to capture save or retain and correctlymanipulate interpret or process any dataor information or command or instructionas a result of treating any date otherwisethan as its true calendar date

iii) to capture save or retain or correctly toprocess any data as a result of theoperation of any command which hasbeen programmed into any computersoftware being a command which causesthe loss of data or the inability to capturesave retain or correctly to process suchdata on or after any date

but this shall not exclude subsequent loss ordamage not otherwise excluded which itselfresults from fire lightning explosion aircraft orother aerial devices or articles droppedtherefrom riot civil commotion strikers lockedout workers persons taking part in labourdisturbances malicious persons theftearthquake storm flood escape of water fromany tank apparatus or pipe or impact by anyroad vehicle or animal provided suchcontingency is insured by this Section

SELECTED ALL RISKS

12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

87

Special Clauses

(Clause 1 and 3 applicable only if the Clause number is entered inthe Schedule Clause 2 applicable only if referred to in the Schedule)

1. Temporary Cover

The first premium has been calculated totake into account the cost of temporary cover (in accordance with particulars lodged with the Company) pending thisPolicy being issued


The discount shown in the Schedule isallowed off the net premiums on this Sectionin consideration of the Insured having givenan undertaking expiring on the date stated inthe Schedule to offer annually the insuranceunder this Section on the terms andconditions in force at the expiry of eachPeriod of Insurance and to pay the premiumannually in advance it being understood that


b) where appropriate the sum insured maybe reduced at any time to correspondwith any reduction in value

The above-mentioned undertaking applies toany Section which may be issued by theCompany in substitution for this Section andthe same discount shall be allowed off thenet premiums on any substituted Sectionissued by the Company as aforesaid


3. Alarm ClauseIt is a condition precedent to liability underthis Section in respect of loss or damage byTheft following entry or attempted entry to orexit from the Premises by forcible and violentmeans that

a) The Premises are protected by anIntruder Alarm System designed, installedand maintained to British StandardBS4737 or EN50131including, where

stipulated by the Company or the localPolice Authority, Code of Practice DD243.

b) The intruder alarm installation andmaintenance company must be both:

I. A member of an Alarm Inspectoratewhich is accredited by UKAS to EN45011 or EN 45012

and

II. Accredited and operate a QualityManagement System in accordancewith EN ISO 9000.

c) The Intruder Alarm System shall bemaintained in full and efficient workingorder under a contract to provide bothcorrective and preventative maintenance,as per the requirements of BS4737 or EN 50131, with the installing company orsuch other company as agreed with theCompany.

Where remote alarm signalling is requiredthe signal transmission must betransmitted to an Alarm Receiving Centrefully compliant with BS5979:2000 andoperated by a company accredited andoperating to a Quality ManagementSystem in accordance with EN ISO 9000




iii) the structure of the Premises orchanges to the layout of the Premiseswhich would affect the effectiveness ofthe Intruder Alarm System

iv) the procedures agreed with theCompany for police or any otherresponse to any activation of theIntruder Alarm System

be made without the written agreement ofthe Company

SELECTED ALL RISKS

12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

88

e) The Alarmed Premises shall not be leftunattended without the agreement of the Company

i) unless the Intruder Alarm System isset in its entirety with the means ofcommunication used to transmitsignals (including both alarmtransmission systems for dualsignalling systems) in full operation

ii) if the police have withdrawn theirresponse to alarm activations

f) The Insured shall maintain secrecy ofcodes for the operation of the IntruderAlarm System and detail of such codesand all keys to the Intruder Alarm Systemshall be removed from the Premiseswhen the Premises are left unattended

g) The Insured shall appoint at least two KeyHolders and lodge written details (whichmust be kept up to date) with the alarmcompany and either the Police or theAlarm Receiving Centre

h) In the event of notification of anyactivation of the Intruder Alarm System orinterruption of means of communicationincluding one or both alarm transmissionsystems in respect of dual signallingsystems during any period the IntruderAlarm System is set a Key Holder shallattend the Premises as soon asreasonably possible

i) In the event of the Insured receiving any notification

i) the police attendance in response toalarm signals/calls from the IntruderAlarm System may be withdrawn or thelevel of response reduced or delayed

ii) from a Local Authority or Magistrateimposing any requirement forabatement of nuisance

iii) that the Intruder Alarm System cannotbe returned to or maintained in fullworking order

the Insured shall advise the Company assoon as possible and comply with anysubsequent requirements stipulated by the Company

DEFINITIONSIntruder Alarm SystemThe component parts including the means ofcommunication used to transmit signals tothe alarm-receiving centre.

Alarmed PremisesThe Premises or those portions of the Premisesprotected by the Intruder Alarm System

Key HolderThe Insured or any person or key holdingcompany authorised by the Insured who isavailable at all times to accept notification offaults or alarm signals to the Intruder AlarmSystem attend and allow access to thePremises


SELECTED ALL RISKS

12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

89

GOODS IN TRANSIT - SENDINGS SECTION


1. Definitions


Limit Any One EventThe maximum we will pay for any occurrenceor series of occurrences attributable to oneoriginal cause

ConsignmentAll property sent at one time in more than one package in one load to the same destination

Enclosed PremisesA locked building or a compound boundedon each side by a substantial wall fence orsimilar structure and having a locked gate

ExcessThe amount for which the Insured isresponsible as the first part of each claim or incident

F.O.B.Free on board The seller agrees to deliverthe property over the ships rail and isresponsible for all expenses and insuranceup to that point

F.O.A.Free on aircraft Terms same as F.O.B.

PackageAll property sent in one self-contained parcel

PropertyGoods and tools belonging to the Insured orfor which the Insured is responsible relatingto the business shown in the Schedule tothis Section except for any goods specificallyexcluded by this Section

Territorial LimitsAnywhere including the sea crossings in orbetween England Wales Scotland NorthernIreland the Channel Islands the Isle of Man and Eire

VehicleMotor Vehicle articulated Vehicle trailer semi-trailer

2. Indemnity

The Company agrees subject to the termscontained herein or endorsed hereon toindemnify the Insured against

Loss of or damage to property in transit todestinations within the territorial limits whilstcarried by the means of conveyance shownin the Schedule to this Section

Cover commences when the property is liftedimmediately prior to despatch or loading andcontinues until arrival at destination including unloading

Cover includes temporary housing in thecourse of transit whether on or off the means of conveyance It does not includetemporary housing of property unloaded from a Vehicle at any premises owned orrented by the Insured

Cover includes incoming supplies andproperty consigned to the Insured fromaddresses within the Territorial Limits if it isthe Insureds responsibility provided that thevalue is included in the estimate supplied anddeclarations provided

The maximum the Company will pay underthis Section including any extensions for AnyOne Event shall be the amount shown in theSchedule as the Limit Any One Event

12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

90

GOODS IN TRANSIT – SENDINGS

3. Basis of Valuation

The valuation of property shall be at invoicecost If an invoice has not been raised thebasis of valuation will be the value of theproperty at the time of the commencement ofthe transit


The Company collects a deposit premiumfrom the Insured based on estimates theInsured supplies as shown in the Scheduleto this Section The Insured has to provide adeclaration of the actual figures inaccordance with the basis of valuation forthe last period of insurance as soon aspossible after that period has ended Theactual premium for the period is thencalculated subject to the minimum premiumshown in the Schedule to this Section

The Insured agrees to keep accurate recordsof all figures which are subject to adjustmentand the Company shall be allowed to inspectsuch records

If the Insured fails to provide accurate figuresthe Company may refuse to meet any claim

5. Extensions

These only apply if shown in the Schedule tothis Section

Reference Number

1. Vehicles Operated by the InsuredThe following additional cover is providedsubject to the Limitations andRequirements shown

a) ExpensesThe Company will pay expensesreasonably incurred for which theInsured is responsible in

i) the removal of debris and siteclearance of property damagedwhilst in transit from theimmediate area of the site where thedamage occurred

ii) transferring property to any otherVehicle following fire collisionoverturning or impact of theconveying Vehicle includingcarrying the property to originaldestination or to place of collection

iii) reloading onto the Vehicle anyproperty which has fallen from the Vehicle

iv) resecuring the property where there is dangerous movement of the load in transit

b) Ropes and SheetsThe Company will pay for loss or damage(excluding wear and tear) to tarpaulinssheets trailer curtains ropes chainswebbing straps and packing materialswhich belong to the Insured or for whichthe Insured is responsible whilst carriedon any Vehicle described in the Scheduleto this Section

c) Reinstatement of Sum InsuredThe Company will automatically reinstatethe Vehicle sum insured shown in theSchedule to this Section from the date ofany loss unless written notice to thecontrary is given by the Company TheInsured may be required to pay extrapremium and if the loss has resulted fromtheft the Company may require theInsured to fit additional protective devicesto the Vehicle

d) Personal EffectsIn the event of the payment of a claim under this Section for property theCompany will pay up to £100 for loss ofor damage to drivers personal effects(excluding wear and tear) whilst they arein Vehicles operated by the Insured butthe Company will not pay for audio/visual/telecommunicationsequipment or clothing watches andjewellery whilst being worn

12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

91

e) Temporary Vehicle SubstitutionIf the Insureds Vehicles are individuallyspecified in the Schedule to this Sectionthe Company will insure property carriedin any similar road Vehicle subject to thisSections terms and security requirementswhen the Insureds own Vehicle is out of use undergoing repair maintenance or testing Limitations and Requirementsi) The Company will not pay for loss or

damage to property during anyerection dismantling or installation

ii) If at the time of any loss or damage thevalue of the property is greater than thesum insured shown in the Schedule tothis Section then the Company will onlypay a proportionate share of the claimThis will be the amount that the Vehiclesum insured bears as a proportion tothe value of the property

iii) If the Insureds Vehicles are leftunattended all doors and the bootmust be securely locked and windowsand other openings securely closed

2. Travellers SamplesThe Company agrees to indemnify theInsured against loss or damage totravellers samples when they aretemporarily removed from the Vehicle andkept in any stockroom hotel or privatedwelling house provided that they remainin the custody or control of the Insured oremployees of the Insured

3. Property on Approval with CustomersThe Company agrees to indemnify theInsured against loss of or damage toproperty whilst

a) in transit to or from the Insuredscustomers premises on approval

b) on the customers premises within the territorial limits excludingloss or damage when in use

The Company will pay up to £20,000 underthis extension for any one event

4. Property on DemonstrationThe Company agrees to indemnify theInsured against loss of or damage to property whilst

a) in transit to or from any premises forthe purpose of demonstration

b) on the premises where thedemonstration takes place within theterritorial limits excluding loss ordamage caused during thedemonstration itself


5. ExhibitionsThe Company agrees to indemnify theInsured against loss of or damage toproperty and stands belonging to theInsured or for which the Insured isresponsible whilst at exhibitions within theterritorial limits including transit to and fromthe exhibition

but excluding

i) loss or damage due to atmospheric climatic or weather conditions of any kind or due to flood

ii) loss or damage to machinery due to itsown running or operation

iii) breakage of china glass scientificinstruments or any other property of abrittle or fragile nature unless resultingfrom fire

6. Packers PremisesThe Company agrees to indemnify theInsured against loss of or damage toproperty whilst

a) in transit to or from packers premises

b) on the packers premises within the territorial limits excluding loss or damage caused during the process of packing



12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

92

7. Outworkers PremisesThe Company agrees to indemnify theInsured against loss of or damage toproperty whilst

a) in transit to or from the Insuredsoutworkers premises

b) on the outworkers premises

within the territorial limits excluding loss ordamage caused during any work process


8. F.O.B./F.O.A. ConsignmentsThe Company agrees to indemnify theInsured against loss of or damage toproperty which is consigned on F.O.B. orF.O.A. terms and whilst temporarily storedawaiting shipment on any quayside or inany dock or airport store up to but notexceeding a period of 30 days

6. General Exclusions

These exclusions apply to the whole Section

1. This Section does not cover any loss ordamage to property directly or indirectlycaused by or arising from

a) pressure waves caused by aircraft orother aerial devices

b) delay

2. This Section does not cover

a) loss of or damage to money securitiesfor money (which includes certificatesof bond stock certificates bills ofexchange promissory notes) stampswatches precious stones jewellerybullion nuclear waste or loss of orinjury to living creatures

b) any indirect or consequential loss

c) natural deterioration

d) the deterioration of property conveyed in frozen chilled or insulated conditiondue to

i) faulty stowage

ii) incorrect setting or operation of theequipment

iii) variations in temperature

unless directly caused by fire accident(but not breakdown) to the conveyingVehicle theft or attempted theft

e) electrical or mechanical derangementunless caused by impact

3. loss destruction or damage occasionedby war invasion act of foreign enemyhostilities (whether war be declared ornot) civil war rebellion insurrection ormilitary or usurped power

4. loss or destruction of or damage to anyproperty whatsoever or any loss orexpense whatsoever resulting or arisingtherefrom or any consequential loss or anylegal liability of whatsoever nature directlyor indirectly caused by or contributed to byor arising from


b) the radioactive toxic explosive or other hazardous properties of anyexplosive nuclear assembly or nuclearcomponent thereof


12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

93

5. loss destruction or damage in NorthernIreland occasioned by or happeningthrough or in consequence directly orindirectly of

a) civil commotion

b) TERRORISM

for the purpose of this Section TERRORISMshall mean any act of any person acting onbehalf of or in connection with anyorganisation with activities directed towardsthe overthrowing or influencing of anygovernment de jure or de facto by force or violence

In any action suit or other proceedings wherethe Company alleges that by reason of thisdefinition any loss destruction or damage isnot covered by this Section the burden ofproving that such loss destruction or damageis covered shall be upon the Insured

7. Special Conditions

1. Other InsurancesIf at the time of a claim there is any otherinsurance arranged by the Insured or onthe Insureds behalf covering anythinginsured under this Section the Companyshall be liable only for a proportionateshare If the other insurance is morespecific in relation to the property then thisSection will only apply after the otherinsurance has been exhausted

2. The Insureds Duty of CareThe Insured must take all reasonablecare to prevent/minimise loss or damageincluding the maintenance of securityprecautions when the property is in theInsureds custody or control The Insuredmust also take reasonable care whenselecting employees

8. It is a condition of the Sectionthat the Insured complies withthe following procedures

1. Notification of ClaimsIn the event of any occurrence which may give rise to a claim the Insured shall immediately

a) give written notice with full particularsto the Company including supportingdocuments and proofs

b) forward to the Company upon receiptevery letter writ summons or process

c) tell the police if there has been a theftattempted theft or criminal damage

d) if loss or damage is caused by acarrier the Insured should notify thecarrier immediately the Insured isaware of the loss or damage and theInsured may be asked to complete thecarriers claim form Any compensationthe Insured subsequently receivesfrom a carrier should be paid to theCompany if the Company has paid the claim

2. Claims Controla) no admission offer promise payment

or indemnity shall be made or given bythe Insured or on the Insureds behalfwithout the Companys written consent

b) the Company shall be entitled to takeover and conduct in the Insuredsname the defence or settlement of any claim or to prosecute in theInsureds name at the Companys ownexpense and for indemnity ordamages or otherwise

c) the Company shall have full discretionin the conduct of any proceedings andin the settlement of any claim

d) the Insured shall give all informationand assistance that the Company may require


12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

94

e) the Company has the right to takepossession of Property insured under this Section which is affected by aclaim The Insured cannot abandonproperty to the Company

3. Basis of Claims settlementThis will normally be a payment in money in accordance with the basis of valuation but the Company has the option to repairreplace or reinstate Property lost ordamaged If the lost or damaged Propertyis not new the Company will take off an amount for wear tear and depreciation Inthe event of loss or damage to any part of a machine which when complete for sale or use consists of several parts theCompany will only pay for the value of thepart actually lost or damaged includingany replacement charges

9. Special Clauses

Only in force if shown in the Schedule to this Section in respect of Vehicles operated by the Insured

Reference Letter

A. Overnight Theft RestrictionThis Section does not cover theft orattempted theft from any unattendedVehicle between 9 p.m. and 6 a.m. unlessit is secured at all points of access and isgaraged within enclosed premises whichare securely locked or have a watchmanin constant attendance It will be up to theInsured to prove that any theft orattempted theft occurred before 9 p.m. or after 6 a.m.

B. Forcible Entry to Vehicle RestrictionThis Section does not cover theft orattempted theft from any unattendedVehicle unless there are outward signs offorced entry to the Vehicle

C. Immobiliser RequirementThe Insured must ensure that all Vehiclesare fitted with a key operated immobiliserapproved by the Company and thatwhenever the Vehicles are left unattendedthe immobiliser is put into operation

D. Alarm RequirementThe Insured must have all Vehicles fittedwith an alarm system approved by theCompany The alarm system must alwaysbe switched on and operational when theVehicles are left unattended The Insuredmust have the alarm system regularlyserviced and maintained by a qualifiedperson approved by the Company TheInsured must not make any alterations to the alarm system without theCompanys agreement

E. Never Left Unattended RequirementWhen Vehicles are carrying property theInsured must ensure that they will not beleft unattended and will always beguarded by the Insured or a responsible adult

F. Exclusion of Overnight Theft CoverThis Section does not cover theft orattempted theft from any unattendedVehicle between 9 p.m and 6 a.m. It willbe up to the Insured to prove that anytheft or attempted theft occurred before 9 p.m. and after 6 a.m.

G. Exclusion of Theft Cover in LondonThis Section does not cover theft orattempted theft which occurs within theperimeter of the M25

H. Exclusion of Travellers SamplesThis Section does not cover travellers samples

I. Exclusion of Specified PropertyThe value of property in Vehicles operatedby the Insured can be omitted from the annual declaration


12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

95

GOODS IN TRANSIT - OWN GOODS SECTION


1. Definitions

Wherever the following words and phrases appear in this Section they will always have these meanings

Any One EventAny one occurrence or series of occurrencesattributable to one original cause

Enclosed PremisesA locked building or a compound boundedon each side by a substantial wall fence orsimilar structure and having a locked gate

ExcessThe amount for which the Insured isresponsible as the first part of each claim or incident

PropertyGoods and tools belonging to the Insured orfor which the Insured is responsible relatingto the business shown in the Schedule tothis Section except for any goods specificallyexcluded by this Section

Territorial LimitsAnywhere including the sea crossings in orbetween England Wales Scotland NorthernIreland the Channel Islands the Isle of Man and Eire

VehicleMotor vehicle articulated vehicle trailer semi-trailer

Vehicle Sum InsuredThe maximum the Company will pay inrespect of property on any one Vehicle

2. Indemnity

The Company agrees subject to the termscontained herein or endorsed hereon toindemnify the Insured against

Loss of or damage to property in transit within the territorial limits whilst carried bythe means of conveyance shown in theSchedule to this Section

Cover commences when the property is liftedby the Insured or the Insureds employeesimmediately prior to loading and continuesuntil the property is placed in position(excluding erection dismantling orinstallation) by the Insured or the Insuredsemployees at destination including loadingand unloading

ExpensesThe Company will pay expenses reasonablyincurred by the Insured in

a) the removal of debris and site clearanceof Property damaged whilst in transit fromthe immediate area of the site where thedamage occurred

b) transferring Property to any other Vehiclefollowing fire collision overturning orimpact of the conveying Vehicle includingcarrying the Property to originaldestination or to place of collection

c) reloading onto the Vehicle any Propertywhich has fallen from the Vehicle

d) resecuring the Property where there is dangerous movement of the load in transit

Ropes and SheetsThe Company will pay for loss or damage(excluding wear and tear) to tarpaulinssheets trailer curtains ropes chains webbingstraps and packing materials which belong tothe Insured or for which the Insured isresponsible whilst carried on any Vehicledescribed in the Schedule to this Section

Reinstatement of Sum InsuredThe Company will automatically reinstate theVehicle Sum Insured shown in the Scheduleto this Section from the date of any lossunless written notice to the contrary is givenby the Company The Insured may berequired to pay extra premium and if the losshas resulted from theft the Company mayrequire the Insured to fit additional protectivedevices to the Vehicle

12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

96

GOODS IN TRANSIT – OWN GOODS

Temporary Vehicle SubstitutionIf the Insureds Vehicles are individuallyspecified in the Schedule to this Section theCompany will insure property carried in anysimilar road Vehicle subject to the Sectionterms and security requirements when theInsureds own Vehicle is out of useundergoing repair maintenance or testing

Temporary Cover for Fleet AdditionsIf the Insureds Vehicles are individuallyspecified in the Schedule to this Sectionsubject to the Section terms the Companywill insure Property carried in any roadVehicle the Insured operates which is to beadded on a permanent basis to the fleet butis not included in the Schedule to thisSection provided that

a) after fourteen days from the date theInsured takes custody or control of theVehicle cover shall cease unless during this period terms have beenmutually agreed between the Companyand the Insured

b) a Vehicle Sum Insured of £2,000 will apply

Personal EffectsIn the event of the payment of a claim underthis Section for Property the Company will payup to £100 for loss of or damage to driverspersonal effects (excluding wear and tear)whilst they are in Vehicles operated by theInsured but the Company will not pay foraudio/visual/telecommunications equipment or clothing watches and jewellery whilst being worn

The maximum the Company will payunder this Section including anyextensions for any one event shall be theamount shown in the schedule as thelimit one event

3. Extensions

These only apply if shown in the Schedule tothis Section

Reference Number

1. Travellers SamplesThe Company agrees to indemnify theInsured against loss of or damage totravellers samples relating to the businessshown in the Schedule to this Section

2. Stockroom and HotelThe Company agrees to indemnify theInsured against loss of or damage toproperty or travellers samples whilsttemporarily removed from the Vehicle andkept in a stockroom hotel or privatedwelling house provided that they remainin the custody and control of the Insuredor the Insureds employees

3. LivestockThe Company will indemnify the Insuredagainst death loss of or injury to livestockwhilst being loaded onto carried by orunloaded from any Vehicle described inthe Schedule to this Section anywhere inGreat Britain by either

a) fire

or

b) accidental means

or

c) theft

Loading starts as the animal mounts theramp and unloading finishes as theanimal leaves the ramp

12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

97


Additional Conditionsi) any Vehicle used must be constructed

specifically for the safe carriage of livestock

ii) the loading and unloading operationsmust be done under adequatesupervision and by means of a speciallyconstructed ramp

The Company will pay up to £500 for anyone animal

The exclusion of living creatures in Exception2a) does not apply to livestock

4. Property on Approval with CustomersThe Company agrees to indemnify theInsured against loss of or damage toproperty whilst on customers premises onapproval excluding loss or damage whilstin use The Company will pay up to£20,000 under this extension for any one event

5. Property on DemonstrationThe Company agrees to indemnify theInsured against loss of or damage toproperty whilst on any premises fordemonstration purposes excluding loss or damage caused during thedemonstration itself


6. ExhibitionsThe Company agrees to indemnify theInsured against loss of or damage toproperty and stands belonging to theInsured or for which the Insured isresponsible whilst at exhibitions

but excluding

i) loss or damage due to atmosphericclimatic or weather conditions of any kindor due to flood

ii) loss or damage to machinery due to itsown running or operation

iii) breakage of china glass or scientificinstruments or any other property of abrittle or fragile nature unless resultingfrom fire


These exclusions apply to the whole Section

1. This Section does not cover any loss ordamage to property directly or indirectlycaused by or arising from

a) pressure waves caused by aircraft orother aerial devices

b) delay

2. This Section does not cover

a) loss of or damage to money securitiesfor money (which includes certificatesof bond stock certificates bills ofexchange or promissory notes) stamps watches precious stonesjewellery bullion or loss of or injury toliving creatures

b) any indirect or consequential loss

c) natural deterioration

d) the deterioration of property conveyed in frozen chilled or insulated condition due to

i) faulty stowage

ii) incorrect setting or operation of the equipment

iii) variations in temperature

unless directly caused by fire accident (butnot breakdown) to the conveying Vehicletheft or attempted theft

3. Loss destruction or damage occasionedby war or invasion act of foreign enemyhostilities (whether war be declared ornot) civil war rebellion insurrection ormilitary or usurped power

12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

98


4. Loss or destruction of or damage to anyproperty whatsoever or any loss orexpense whatsoever resulting or arisingtherefrom or any consequential loss orany legal liability of whatsoever naturedirectly or indirectly caused by orcontributed to by or arising from


b) the radioactive toxic explosive or otherhazardous properties of any explosivenuclear assembly or nuclear component thereof

5. Loss destruction or damage in NorthernIreland occasioned by or happeningthrough or in consequence directly orindirectly of

a) civil commotion

b) TERRORISM

for the purpose of this Section TERRORISMshall mean any act of any person acting onbehalf of or in connection with anyorganisation with activities directed towardsthe overthrowing or influencing of anygovernment de jure or de facto by force or violence

In any action suit or other proceedings wherethe Company alleges that by reason of thisdefinition any loss destruction or damage isnot covered by this Section the burden ofproving that such loss destruction or damageis covered shall be upon the Insured


1. The Insureds Duty Of CareThe Insured must take all reasonablecare to prevent/minimise loss or damageto Property If the Vehicle(s) is/are leftunattended the Insured must ensure thatall doors and the boot are securely lockedand windows and other openings aresecurely closed

The Insured must also take reasonable carewhen selecting employees

2. AverageIf at the time of any loss or damage thetotal value of the Property on theconveying Vehicle to which this insurancerelates shall exceed the sum insured inrespect of such Property on such Vehiclethen the Insured shall be deemed his/herown Insurer for the difference and shallbear a proportional share of the loss ordamage accordingly This will be theamount that the Vehicle Sum Insuredbears as a proportion to the value of the Property

3. Premium AdjustmentThe Company collects a deposit premiumfrom the Insured based on estimates theInsured supplies as shown in theSchedule to this Section The Insured hasto provide a declaration of the actualfigures for the last period of insurance assoon as possible after that period hasended The actual premium for the periodis then calculated

6. Claims Conditions and Procedure

It is a condition of this Section that the Insured complies with the following requirements

1. Notification of ClaimsIn the event of any occurrence which maygive rise to a claim under this Section theInsured shall immediately

a) give written notice with full particularsto the Company

b) forward to the Company upon receiptevery letter claim writ or process

c) tell the police if there has been a theftattempted theft or criminal damage

12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

99


2. Claims Controla) No admission offer promise payment

or indemnity shall be made or given by the Insured or on the Insureds behalfwithout the written consent of the Company

b) The Company shall be entitled to takeover and conduct in the Insuredsname the defence or settlement of anyclaim or to prosecute in the Insuredsname at the Companys own expenseand for the Companys benefit anyclaims for indemnity or damages or otherwise

c) The Company shall have full discretionin the conduct of any proceedings andin the settlement of any claim

d) The Insured shall give all informationand assistance that the Company may require

e) The Company have the right to takepossession of Property insured underthis Section which is affected by aclaim The Insured cannot abandonProperty to the Company

3. Basis of Claims settlementThis will normally be a payment in moneybut the Company has the option to repair replace or reinstate Property lost or damaged

In the event of loss or damage to any part of a machine which when complete forsale or use consists of several parts theCompany will only pay for the value of thepart actually lost or damaged includingany replacement charges

7. Special Clauses

Only in force if shown in the Schedule to this Section

Reference Letter

A. Overnight Theft RestrictionThis section does not cover theft orattempted theft from any unattendedVehicle between 9 p.m. and 6 a.m. unlessit is secured at all points of access and isgaraged within enclosed premises whichare securely locked or have a watchmanin constant attendance It will be up to theInsured to prove that any theft orattempted theft occurred before 9 p.m. orafter 6 a.m.

B. Forcible Entry to Vehicle RestrictionThis Section does not cover theft orattempted theft from any unattendedVehicle unless there are outward signs offorced entry to the Vehicle

C. Immobiliser RequirementThe Insured must ensure that all Vehiclesare fitted with a key operated immobiliserapproved by the Company and thatwhenever the Vehicles are left unattendedthe immobiliser is put into operation

D. Alarm RequirementThe Insured must have all Vehicles fittedwith an alarm system approved by theCompany The alarm system must alwaysbe switched on and operational when theVehicles are left unattended The Insuredmust have the alarm system regularlyserviced and maintained by a qualifiedperson approved by the Company TheInsured must not make any alterations to the alarm system without theCompanys agreement

12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

100


E. Never Left Unattended RequirementWhen Vehicles are carrying Property theInsured must ensure that they will not be left unattended and will always beguarded by the Insured or a responsibleable bodied adult

F. Exclusion of Overnight Theft CoverThis Section does not cover theft orattempted theft from any unattendedVehicle between 9 p.m. and 6 a.m. It willbe up to the Insured to prove that anytheft or attempted theft occurred before 9p.m. or after 6 a.m

G. Exclusion of Theft Cover in LondonThis Section does not cover theft orattempted theft which occurs within theperimeter of the M25

12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

101

PUBLIC LIABILITY -

BUILDING AND ALLIED TRADES SECTION


1. Definitions


Injurybodily injury death disease illness or nervous shock

Businessthe business stated in the Scheduleconducted by the Insured at or from premises in Great Britain Northern Ireland the Channel Islands or the Isle of Man including



c) the ownership maintenance and repair ofpremises within such territories



b) any person who is hired to or borrowedby the Insured

c) any person engaged in connection with awork experience or training scheme


e) any person engaged by labour onlysub-contractors





Ireland the Channel Islands or the Isle of Man other than Offshore

b) member countries of the EuropeanCommunity other than Offshore inconnection with temporary visitsundertaken in the course of the Businessby any person normally resident in theterritories described in a) above

c) elsewhere in the world other thanOffshore in respect of business journeyswhich do not involve manual labour or thesupervision thereof

Works ExecutedWorks executed including goods or materialsused by or on behalf of the Insured in thecourse of the Business

OffshoreFrom the time of embarkation onto aconveyance at the point of final departurefrom land to any offshore rig or any offshoreplatform and until such time ofdisembarkation from a conveyance onto land upon return from any offshore rig or any offshore platform

12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

102

PUBLIC LIABILITY - BUILDING AND ALLIED TRADES

2. Interpretation

Additional Persons Insured

a) In the event of the death of any personentitled to indemnity under this Sectionthe Company will indemnify in the termsof this Section the deceaseds legalpersonal representatives but only inrespect of liability incurred by suchdeceased person

b) At the request of the Insured theCompany will indemnify in the terms ofthis Section


ii) any director of the Insured orEmployee in respect of liabilityarising in connection with theBusiness

provided that the Insured would have beenentitled to indemnity under this Section if theclaim had been made against the Insured

b) i) any officer committee or memberof the Insureds canteen sportssocial or welfare organisations firesecurity first aid medical orambulance services in theirrespective capacities as such


provided that

i) each such person shall as thoughhe were the Insured observe fulfiland be subject to the terms of thisSection in so far as they can apply

ii) the Company shall retain the soleconduct and control of all claims

iii) where the Company is required toindemnify more than one party thetotal amount of indemnity payableto all parties in respect ofdamages shall not exceed theLimit of Indemnity

Cross LiabilitiesIf more than one Insured is referred to in the Schedule this Section shall apply to eachone as if a separate policy had been issuedto each (provided that the total amount ofindemnity payable to all parties in respect of damage shall not exceed the Limit of Indemnity)

3. Indemnity

The Company will indemnify the Insuredagainst all sums that the Insured shallbecome legally liable to pay as damages andcosts and expenses in respect of accidental



c) nuisance or trespass obstruction loss ofamenities or interference with any right ofway light air or water

d) wrongful arrest detention imprisonment oreviction of any person or invasion of theright of privacy

occurring within the Territorial Limits duringthe Period of Insurance and happening inconnection with the Business

Limit of IndemnityThe liability of the Company for all damagespayable to any claimant or number ofclaimants as a result of any one occurrenceor all occurrences of a series consequentupon or attributable to one source or originalcause shall not exceed the amount stated in the Schedule to this Section as the Limitof Indemnity

12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

103


CostsThe Company will in addition pay all othercosts and expenses incurred with its writtenconsent in respect of any claim which may be the subject of indemnity under this Section

pay solicitors fees incurred with its writtenconsent for

a) defence in any Court of SummaryJurisdiction of any proceedings broughtagainst the Insured in respect of breachor alleged breach of any statutory dutyresulting in Injury

b) representation at a Coroners Court or Fatal Accident Inquiry in respect of any death

which may be the subject of indemnity underthis Section

indemnify the Insured and at the request ofthe Insured any director or Employee inrespect of legal costs and expenses incurredwith the Companys written consent andcosts awarded against the Insured or directoror Employee arising in connection with aprosecution (including an appeal againstconviction resulting from a prosecution) as aresult of an alleged offence occurring duringthe Period of Insurance under the Health andSafety at Work etc Act 1974 or similar safetylegislation of Great Britain Northern Irelandthe Channel Islands or the Isle of Manprovided that

a) the proceedings relate to the health safetyor welfare of persons other than Employees




indemnify the Insured in respect of legalcosts and expenses incurred with theCompanys written consent in the defence ofany criminal proceedings brought or in anappeal against conviction arising from suchproceedings in respect of a breach of Part IIof the Consumer Protection Act 1987provided that

a) the proceedings relate to an offencealleged to have been committed in thecourse of the Business during the Periodof Insurance




Exclusions


1. Injury to Employeesin respect of Injury to any Employee

2. Property under Insureds Controlin respect of loss of or damage to

a) property belonging to the Insured

b) property which is leased let rentedhired or lent to or which is the subjectof a bailment to the Insured

c) property comprising the permanent ortemporary works undertaken by theInsured in the course of any contractor agreement and which are under thecontrol of the Insured or for which theInsured is responsible

12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

104


3. Rectification Costsa) in respect of the cost or value of any

Works Executed or replacement repairremoval rectification or reinstatementthereof where legal liability arises froma defect in or the unsuitability of suchWorks Executed

b) for the costs of remedying any defector alleged defect in land or premisessold or disposed of by the Insured orfor any reduction in the value thereof

4. Aviation and Craftarising out of

a) work in or on aircraft

b) work in or on airport or aerodromerunways manoeuvring areas or aprons or those parts of airports or aerodromes to which aircraft have access

c) the ownership possession or use by oron behalf of the Insured of any

i) aircraft

ii) Watercraft (other than watercraftnot exceeding 8 metres in length orany hand-propelled boat or pontoon)

5. Vehiclesarising out of the ownership possessionor use by or on behalf of the Insured ofany mechanically propelled vehicle ortrailer attached thereto in circumstanceswhere compulsory insurance or security isrequired or where insurance is providedby another policy

6. Liability under Agreementassumed by the Insured under agreementunless the conduct and control of allclaims is vested in the Company butindemnity shall not in any event apply to

a) liquidated damages fines or penalties

b) an agreement to arrange insuranceunder the terms of Clause 21.2.1 of

the JCT Conditions of Contract or ofany other contract condition requiringinsurance of a like kind

c) liability which attaches solely byreason of an agreement relating to the performance of work outside Great Britain Northern Ireland theChannel Islands or the Isle of Man

7. War Risksarising from any consequence of warinvasion act of foreign enemy hostilities(whether war be declared or not) civil warrebellion revolution insurrection or militaryor usurped power

8. Radioactive Contaminationof whatsoever nature directly or indirectlycaused by or contributed to by or arising from



Exclusions and Limitation

Pollution or Contaminationa) this Section excludes all liability in respect

of Pollution or Contamination other thancaused by a sudden identifiableunintended and unexpected incidentwhich takes place in its entirety at aspecific time and place during the Periodof Insurance

All Pollution or Contamination which arisesout of one incident shall be deemed to have occurred at the time such incidenttakes place

b) The liability of the Company for allcompensation payable in respect of allPollution or Contamination which isdeemed to have occurred during the

12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

105


Period of Insurance shall not exceed inthe aggregate the amount shown in theSchedule to this Section as the Limit of Indemnity

c) For the purpose of this Exclusion andLimitation Pollution or Contamination shallbe deemed to mean

i) all Pollution or Contamination ofbuildings or other structures or ofwater or land or the atmosphere and

ii) all loss or damage or injury directly orindirectly caused by such Pollution or Contamination

Extensions

Compensation for Court AttendanceIn the event of the undermentioned personsattending court as a witness at the request ofthe Company in connection with a claim inrespect of which the Insured is entitled toindemnity under this Section the Companywill provide compensation to the Insured atthe following rates per day for each day onwhich attendance is required



Rented PremisesExclusion 2b) shall not apply to premisesleased let rented hired or lent to the Insuredprovided that the indemnity will not apply tolegal liability in respect of

a) loss or damage under agreement unless liability would have attached to the Insured in the absence of such agreement

b) loss of or damage to premises caused byfire or any other peril against which atenancy or other agreement stipulatesthat insurance shall be effected by or onbehalf of the Insured

c) the first £250 of each and everyoccurrence of loss or damage causedotherwise than by fire or explosion

Defective Premises ActLegal liability in respect of Injury loss ordamage arising solely by reason of Section 3of the Defective Premises Act 1972 or Article5 of the Defective Premises (NorthernIreland) Order 1975 in respect of anypremises previously owned for purposespertaining to the Business and sincedisposed of by the Insured is included withinthe terms of the indemnity provided by thisSection but indemnity will not apply if theInsured is entitled to indemnity under anyother insurance

Contingent Motor LiabilityNotwithstanding Exclusion 5 the Companywill indemnify the Insured against legalliability in respect of Injury loss or damagearising out of the use in connection with theBusiness of any motor vehicle not owned orprovided by the Insured


a) in respect of loss of or damage to anysuch vehicle or to goods conveyedtherein or thereon

b) in respect of Injury loss or damage arisingwhile such vehicle is being

i) driven by the Insured

ii) driven with the general consent of theInsured or of his representative by any person who to the knowledge ofthe Insured or his representative does not hold a licence to drive avehicle unless such person has heldand is not disqualified from holdingsuch a licence

iii) used elsewhere than in Great BritainNorthern Ireland the Channel Islandsor the Isle of Man

c) in respect of which the Insured is entitledto indemnity under any other insurance

12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

106


Overseas Personal LiabilityThe Company will indemnify the Insured andif the Insured so request any director orpartner of the Insured or any Employee orspouse of such person against legal liabilityincurred in a personal capacity whilsttemporarily outside Great Britain NorthernIreland the Channel Islands or the Isle of Man


a) arising out of the ownership or occupationof land or buildings

b) in respect of which any person referred toabove is entitled to indemnity under anyother insurance

Subject otherwise to the terms Exclusionsand Conditions of this Section

Fire Precautions Condition

It is a condition precedent to liability underthis Section that in respect of use away fromthe Insureds premises of blow lamps blowtorches flame guns hot air guns electric oxy-acetylene or other welding or cuttingequipment and angle grinders (incircumstances where sparks are emitted) theundernoted precautions will be complied withon each occasion –

Blow lamps blow torches flame guns and hot air guns

i) the area in which work is to be carried outto be examined and combustible propertywithin the vicinity of the work eitherremoved or as far as practicable coveredby non-combustible materials

ii) suitable fire extinguishing appliances tobe kept available for immediate use at thepoint of work or as near as is practicable

iii) blow lamps blow torches and flame gunsnot to be lighted until required for use andextinguished immediately after use

iv) lighted blow lamps blow torches andflame guns not to be left unattended

v) hot air guns to be switched off when unattended

vi) upon completion of each period of work athorough fire safety check to be made ofthe vicinity of the work

Electric oxy-acetylene or other welding orcutting equipment and angle grinders

i) the area in which the work is to be carriedout including adjoining shafts or openingsand the area on the other side of any wallor partition to be inspected to seewhether any combustible property otherthan the property to be worked upon is indanger of ignition either directly or byconduction of heat

ii) all combustible property to be removed to a distance of not less than 6 metresfrom the point of work and property which cannot be moved to be coveredand fully protected by overlapping sheets of non-combustible material orequivalent protection

iii) the Insured shall arrange for a personwho is competent in the use of fireextinguishing appliances to work inconjunction with the operative using theequipment to act as a firewatcher and toremain in attendance at all times untillighted flame equipment is extinguished

iv) suitable fire extinguishing appliances tobe made available for immediate use atthe point of work

v) gas cylinders not in use to be keptoutside the building in which the work istaking place where practicable but in anyevent at least 15 metres from the point ofapplication of the heat

vi) upon completion of each period of work athorough fire safety check to be made ofall areas referred to in paragraph i) above

The fire safety check to be undertaken atregular intervals for a period of at least onehour after completion

12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

107


Special Conditions



2. Material Facts



The Insured shall


b) take all reasonable steps to comply withstatutory requirements obligations and regulations imposed byany authority





b) forward to the Company upon receiptevery letter claim writ summons or process


5. Claims Control





6. Discharge of Liability

The Company may pay the Limit ofIndemnity or any lesser sum for which anyclaim or claims against the Insured can besettled and the Company shall be under nofurther liability in respect of such claim orclaims except for costs or expenses incurredprior to the date of such payment

7. Other Insurances


12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

108


If any part of the premium has beencalculated on estimates the Insured shallwithin one month from the expiry of eachPeriod of Insurance furnish such particularsand information as the Company may requireand shall at the request of the Companyprovide an auditors certificate in supportthereof The premium for such period shallthen be adjusted subject to the Companyretaining 75% of the premium paid for thePeriod of Insurance which corresponds tothe period which is being adjusted Should the Insured fail to supply such particulars the Company shall be entitled to charge areasonable additional premium in respect of that Period of Insurance



12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

109

CONTRACTORS ALL RISKS SECTION


1. Definition


Territorial LimitsShall mean anywhere within Great BritainNorthern Ireland the Channel Islands or theIsle of Man

2. Indemnity

The Company agrees (subject to the termsexceptions and conditions contained hereinor endorsed hereon) to indemnify the Insuredby payment or at its option by reinstatementor repair in respect of loss or damage to the property described in the Schedule tothis Section

The Company will also reimburse costs andexpenses necessarily incurred by theInsured with the consent of the Company for

a) removing debris

b) dismantling and/or demolishing

c) shoring up propping and fencing off

d) clearing and/or repairing drains andservice mains on site

e) architects surveyors and consultants feesin connection with the reinstatement ofthe Permanent and Temporary Worksconsequent upon its destruction ordamage but not for preparing any claim

Provided that the liability of the Companyshall not exceed the sum insured or limit ofliability shown in the Schedule plus anyadditional amount shown in the escalatorclause of the extensions

3. The Property Insured

Where the following words appear in thisSection they will always have the following meaning

The Permanent or Temporary WorksThe Permanent or Temporary Worksexecuted in performance of the Contract andMaterials for use in connection therewith

Constructional Plant and EquipmentConstructional plant tools scaffolding andequipment the property of the Insured foruse in connection with the Contract

Temporary BuildingsSite huts and temporary buildings officefurniture fixtures and fittings the property of the Insured for use in connection with the Contract

Hired in PlantProperty hired in by the Insured for use inconnection with the Contract

Employees ToolsEmployees Tools and other personal effectsfor which the Insured is responsible and foran amount not exceeding £500 any oneemployee after the application of the Amount Excluded

All intended for use in connection with theContract whilst on or adjacent to the site ofthe Contract

4. Exclusions


1. Amount Excludeda) The first £50 in respect of loss of or

damage to each employees tools andpersonal effects

b) The first £500 in respect of loss of ordamage to all other Property Insuredexcept for loss or damage by theft ormalicious act when the amountexcluded is increased to £750

12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

110

CONTRACTORS ALL RISKS

2. VehiclesLoss of or damage to any mechanicallypropelled vehicle intended for conveyanceof persons materials or plant and forwhich Insurance or Security under theRoad Traffic Acts is necessary but thisexclusion shall not apply to any vehicleprimarily intended for use at Contractsites nor any vehicle used solely atContract sites and which is not licensedfor road use

3. Craft or VesselsLoss of or damage to any waterbornevessel or craft exceeding 8 metres inlength or to any aircraft

4. Deeds EtcLoss of or damage to deeds bonds bills ofexchange promissory notes moneystamps securities or documents of titleprecious metals precious stones orarticles made therefrom

5. Vehicles Machinery or Plant BreakdownLoss of or damage to any vehicle or itemof plant or machinery caused by its ownbreakdown or its own explosion

6. Existing PropertyLoss of or damage to any existingproperty including any existing propertybeing altered or repaired

7. WaterAny work in under or over water oradjoining or adjacent to rivers lakesreservoirs dams or tidal waters or withincofferdams or caissons

8. Tunnels EtcAny work on bridges viaducts subwaystunnels motorways dams and nuclear installations

9. DepthAny work where the depth of excavationexceeds 5 metres

10. Defective Design Material or WorkmanshipThe cost necessary to replace repair orrectify any of the Property Insured whichis in a defective condition due to a defectin design plan specification materials orworkmanship notwithstanding anythingcontained herein to the contrary thisexclusion shall not apply to the remainderof the Property Insured which is free ofsuch defective condition but is damagedas a consequence of such defect

11. Normal UpkeepThe cost necessary for normal upkeep ornormal making good

12. Wear and TearLoss or damage due to wear and tear orgradual deterioration rust wet or dry rotcontamination vermin and insects

13. Certificate of CompletionLoss of or damage to any part of thepermanent works

a) after such part has been completedand delivered up to the owner tenantor occupier or

b) after such part has been taken intouse by the owner tenant or occupier or

c) for which a Certificate of Completionhas been issued other than wheresuch loss or damage

i) be occasioned during the DefectsLiability Period specified in theContract and arising from a causeoccurring prior to commencementof such period

12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

111


ii) is in respect of materials or otherInsured Property on site for thepurpose of carrying out remedialworks during the Defects LiabilityPeriod specified in the Contractand for which the Insured areresponsible under the terms of theContract during the said DefectsLiability Period

iii) within 14 days of the time of issueof such Certificate of Completionand which the contractor isrequired by the terms of theContract to insure

14.Conditions of ContractLoss or damage for which the Insured isrelieved of responsibility by theConditions of Contract

15. Penalties Under ContractPenalties under Contract for delaydetention or loss of use or losses arisingin connection with Guarantees ofPerformance or efficiency orconsequential loss or damage of any kind

16. Disappearance or ShortageLoss of any property by disappearance orby shortage where such loss issubstantiated only by the making of aninventory or a periodic stocktaking or isnot traceable to an identifiable event

17. Pressure WavesLoss destruction or damage directlyoccasioned by pressure waves caused byaircraft and other aerial devices travellingat sonic or supersonic speeds

18. War Etc RisksLoss or damage occasioned by orhappening through war invasion act offoreign enemy hostilities (whether war bedeclared or not) civil war rebellionrevolution insurrection or military orusurped power or confiscationnationalisation requisition or destructionof or damage to property by or under theorder of any Government or Public orLocal Authority

19. Nuclear RisksLoss or destruction of or damage to anyproperty whatsoever or any loss orexpense whatsoever resulting or arisingtherefrom or any consequential lossdirectly or indirectly caused by orcontributed to by or arising from



20.TerrorismLoss damage cost or expense of whatsoever nature directly or indirectly resulting from or in connection with

1. any act of Terrorism regardless of anyother cause or event contributingconcurrently or in any other sequenceto the loss

2. any action taken in controllingpreventing suppressing or in any wayrelating to any act of terrorism

If the Company alleges that by reason of this exclusion any loss damage cost or expense is not covered by this Section of the policy the burden of proving the contrary shall be upon the Insured

In the event any portion of this exclusion is found to be invalid or unenforceable the remainder shall remain in full force and effect

Definition – TerrorismFor the purpose of this exclusion an act ofTerrorism shall mean an act including but notlimited to the use of force or violence and orthreat thereof of any person or group(s) ofpersons whether acting alone or on behalf ofor in connection with any organisation(s) orgovernment(s) committed for political religiousideological or similar purposes including theintention to influence any government and orput the public or any section of the public in fear

12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

112


21.Electronic RisksLoss of or damage to any computer or other equipment or component or system or item which processes stores transmits or retrieves data or any part thereof whether tangible or intangible (including but without limitation any information or programs or software) and whether the property of the Insured or not where suchloss destruction or damage is caused by programming or operator error Virus or Similar Mechanism Hacking including where this results from the actions or malicious persons or thieves

For the purpose of this Section Exclusion the following Definitions apply

i) Virus or Similar Mechanism shallmean program code programminginstruction or any set of instructionsintentionally constructed with theability to damage interfere with orotherwise adversely affect computerprograms data files or operationswhether involving self-replication ornot

This definition of Virus or Similar Mechanism includes but is not limited toTrojan horses worms and logic bombs

ii) Hacking shall mean unauthorisedaccess to any computer or componentor system or item which processesstores transmits or retrieves data

22.Date RecognitionLoss or damage directly or indirectly caused by or contributed to by or arising from the failure of any computer or other equipment data processing service product microchip micro processor integrated circuit embedded chip or similardevice computer software program or process or any other electronic system or any design or advice in connection with anyof the foregoing irrespective of ownership possession or use and whether occurring before during or after the Year 2000


ii) to capture save or retain and correctlyto manipulate interpret or process anydata or information or command orinstruction as a result of treating anydate otherwise than as its truecalendar date


but this shall not exclude subsequent lossor damage not otherwise excluded which itself results from fire lightning explosion aircraft or other aerial devices or articles dropped therefrom riot civil commotion strikers locked out workers persons takingpart in labour disturbances malicious persons theft earthquake storm flood escape of water from any tank apparatus or pipe or impact by any road vehicle or animal provided such contingency is insured by this Section

23.Northern IrelandLoss destruction or damage in Northern Ireland occasioned by or happening through or in consequence of

a) civil commotion

b) Terrorism as defined in the Terrorism Exclusion

In any action suit or other proceedings where the Company alleges that by reason of the provisions of this exclusion any loss destruction or damage is not covered by this Section the burden of proving that such loss destruction or damage is covered shall be upon the Insured

12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

113


5. Extension Clauses

Sub-ContractorsIn respect of any Contract awarded underthe JCT Standard Form of Building Contractincorporating the 1986 Amendment toInsurance and related Liability Provisions (orequivalent thereof) and insured under thisSection the following alterations to thisSection shall apply but only in respect of thePermanent and Temporary Works

In respect of loss or damage to thePermanent and Temporary Works by any ofthe Specified Perils defined in the Contract itis agreed that so far as is required by thesub-contract the Company will not pursueany rights of subrogation against sub-contractors directly engaged by the maincontractor provided that the sub-contractorshall as if he were the Insured observe fulfiland be subject to the Terms Exceptions andGeneral Conditions of this Policy

Indemnity to PrincipalsThe insurance by this Section extends toinclude the interest of the InsuredsEmployer/Principal solely to the extentrequired by the Conditions of Contract inforce between the Insured and hisEmployer/Principal provided always thatsuch Employer/Principal shall as if he werethe Insured observe fulfil and be subject tothe Terms Exceptions and GeneralConditions of this Policy

Reinstatement of Sum InsuredIn the event of loss the sum insured by thisSection will be automatically reinstated fromthe date of the loss unless written notice isgiven to the contrary either by AXAInsurance or by the Insured and the Insuredundertake to pay such necessary premiumsas may be required for such reinstatementfrom that date

Immobilised PlantThis Section extends to include the paymentof necessary costs incurred in the recoveryof property described in the Schedule to this

Section which may become immobilised orimmovable whilst being used in connectionwith the Contract

Provided always that the cause of suchimmobilisation or immovability is the subjectof a claim covered by this Section

Local Authorities ClauseThe insurance in respect of the PermanentWorks includes such additional cost ofreinstatement following loss or damage tothe Property Insured thereby as may beincurred solely by reason of the necessity tocomply with Building or other Regulationsunder or framed in pursuance of any Act ofParliament or Bye-Laws of any Municipal orLocal Authority

but excluding

a) such costs incurred

i) which can be recovered elsewhere

ii) where notice has been served uponthe Insured under any of the aforesaidRegulations or Bye-Laws prior to thehappening of the loss or damage

b) the amount of any rate tax dutydevelopment or other charge orassessment arising out of capitalappreciation which may be payable inrespect of the property or by the ownerthereof by reason of compliance with anyof the said Regulations or Bye-Laws

Provided that the work of reinstatement shall be commenced and carried out withoutunreasonable delay

Escalator ClauseIn the event of an increase in the value ofany Contract the Sum Insured in respect ofthe Permanent and Temporary Works isautomatically increased for such Contractprovided that the amount of the saidincrease shall not exceed 20% of the saidSum Insured

12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

114


Free MaterialsThe Property Insured in respect of thePermanent and Temporary Works shallinclude any materials supplied by or providedto the Insured for inclusion in The Contractor Works for which the Insured is responsiblethe value of which will not be included in thefinal valuation of the Works carried out orfinal Contract price and which are nototherwise excluded from this Section

TransitThe insurance extends to include loss of ordamage to the Property Insured whilst intransit within the Territorial Limits other than

a) by sea or air

b) any mechanically propelled vehicle underits own power

c) employees tools and personal effects

Off-Site Storagea) The insurance in respect of the

Permanent Works extends to apply tomaterials and goods whilst not on the siteof any contract but intended for inclusionin any Contract Works covered by thisSection where the Contractor isresponsible under any standard printedcontract conditions provided that thevalue of such materials and goods hasbeen included in an interim certificate andthe materials and goods are separatelystored and identified as being designatedfor incorporation in a specific contract

The maximum liability of the Company underthis extension shall not exceed:–

i) £1,000 in respect of non ferrous metals

ii) £100,000 in respect of any other materials

b) Where the insurance by this Sectionincludes Constructional Plant andEquipment Temporary Buildings andHired in Plant such property is insuredwhilst at the Insureds own premises or ina securely locked compound or store

Expediting CostsThis Section extends to include payment ofextra charges for overtime nightwork work onpublic holidays express freight air freight andthe like necessarily incurred by the Insuredfollowing reinstatement or replacement ofany damaged property forming the basis of aclaim under this Section

Re-drawing Plans/DocumentsThe Company will reimburse costs andexpenses necessarily incurred in re-writing orre-drawing plans drawings or other contractdocuments following loss or damage theretoup to a maximum amount for any one claimof £25,000

Showhouses and ContentsThe insurance by this Section extends toinclude showhouse properties andshowhouse contents until sold provided thatthe liability of the Company under thisextension in respect of showhouse contentsshall not exceed £5,000

Speculative BuildingIt is agreed that

a) the property insured in respect ofPermanent Works includes such propertybeing built or erected by the Insured otherthan under Contract

b) in respect of property being built orerected other than under Contract theinsurance by this Section shall cease toapply from

i) the date such property is sold or let or

ii) three months after the date ofsubstantial completion of the work orbuilding or erecting such propertywhichever is the earlier

Where the property comprises several unitswithin one block then b) i) shall apply to eachindividual unit but cover in respect of thewhole block shall not exceed 3 months fromthe date of substantial completion if parts ofit are still unsold or unlet

12879_Z1487TP_POL.qxd 22/5/06 12:08 pm


c) if from any cause work on The Contractsite shall cease for a period in excess of3 consecutive months then this Sectionshall be avoided unless its continuancebe agreed in writing by the Company

Substantial Completion for the purposes ofthis Extension shall mean completion apartfrom a prospective purchasers or tenantschoice of decoration and/or final fitments

Hired in PlantWhere Hired-in-Plant is insured this Sectionwill provide indemnity against the legalliability of the Contractor under the terms ofhiring agreements It is further agreed thatnotwithstanding anything contained to thecontrary in Exclusions 5 or 15 of this Sectionthe Company will indemnify the Insuredagainst legal liability in the terms of theHiring Agreement or otherwise

a) to make good to the owner loss of ordamage to any plant hired in insuredhereby caused by its own breakdown orits own explosion

b) to pay to the owners of any such planthired in hire charges incurred as aconsequence of and solely due to

i) physical loss of or damage to the saidplant or

ii) breakdown of the said plant due to thenegligence misdirection or misuse bythe Insured or his servants

Provided that:–

a) such hire charges shall be calculated atthe appropriate idle time rate for theperiod during which the plant isnecessarily idle due to such loss damageor breakdown not exceeding 90 days fromthe time thereof and excluding the first 48 hours

b) this extension does not apply to the result of any wilful act or wilful neglect of the Insured

c) the liability of the Company shall belimited to £250 per item per day unlessotherwise stated


1. Reasonable PrecautionsThe Insured shall take all reasonableprecautions to safeguard the PropertyInsured and prevent loss or damageincluding any additional precautionsnecessary as the result of partial or totalcessation of work by the Insured at anyContract site

2. Notification to Police of Theft or Wilful DamageIn the case of theft or wilful damage theInsured shall immediately notify the Policeand shall take all reasonable steps for thediscovery and punishment of any guiltyperson and to trace and recover theproperty lost

3. Other InsurancesThis Section does not cover any loss ordamage which is insured by or would butfor the existence of this Section beinsured by any other policy or policiesexcept in respect of any excess beyondthe amount paid under such other policyor policies or which would have beenpayable thereunder had this insurancenot been effected

4. Premium AdjustmentIf any part of the Premium is calculatedon estimates furnished by the Insured theInsured shall keep an accurate recordcontaining all particulars relative theretoand shall at all times allow the Companyto inspect such record The Insured shallwithin one month from the expiry of eachPeriod of Insurance furnish to theCompany such particulars andinformation as the Company may requireThe Premium for such period shallthereupon be adjusted and the differencepaid by or allowed to the Insured as thecase may be subject to retention by theCompany of 75% of the premium paid

115

12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

116


Special Clauses

(Clause 1 applicable only if clause number is entered in theSchedule Clause 2 applicable only if referred to in the Schedule)

1. Temporary CoverThe first premium has been calculated to take into account the cost of temporary cover (in accordance with particulars lodged with the Company) pending issue of this Policy

2. Long Term Agreement ClauseThe discount shown in the Schedule is allowed off the net premiums on this Section in consideration of the Insured having given an undertaking expiring on the date specified in the Schedule to offerthe insurance on the terms and conditionsin force at the expiry of each Period of Insurance and to pay the premium annuallyin advance it being understood that

a) the Company shall be under noobligation to accept an offer made inaccordance with the above mentionedundertaking

b) the sum insured may be reduced atany time to correspond with anyreduction in value

The above mentioned undertaking appliesto any section or sections which may be issued by the Company in substitution for this Section and the same discount shall be allowed off the net premiums on any substituted section or sections issued by the Company as aforesaid

Payment of the premium due at the expirydate shown in the Schedule shall be deemed acceptance by the Insured of theterms of this clause

12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

117

THEFT BY EMPLOYEES SECTION

Only applicable if this Sectionis shown as operative inthe Schedule

Definitions


EmployeeAny person working for the Insured inconnection with the Business who is

a) engaged under a contract of service orapprenticeship between such person andthe Insured and

b) remunerated wholly or mainly by salary orwages and

c) named or otherwise described in the Schedule

Territorial LimitsAnywhere in Great Britain Northern Irelandthe Channel Islands and the Isle of Man

CoverThe Company will indemnify the Insured against

1. direct loss of money or property belongingto the Insured or for which the Insured islegally responsible as a direct result ofany act of fraud or dishonesty committedby an Employee after the commencementdate applicable to such Employee andduring the Period of Insurance providedthat

a) any loss is discovered not later thantwenty-four months after thetermination of

(i) the employment of the Employee or Employees concerned in suchloss or

(ii) the insurance in respect of theEmployee or Employees concernedin such loss or

(iii) this Section

whichever occurs first

b) the act of fraud or dishonesty iscommitted within the Territorial Limits

2. the cost of any special professional auditnecessarily incurred with the writtenconsent of the Company solely tosubstantiate the amount of loss

12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

118

Limit of Indemnity

1. The liability of the Company includingliability for Auditors fees shall not exceed

a) in respect of any Employee the Limitof Indemnity stated against his/hername or description and

b) in respect of all claims under this Section the Aggregate Limit of Indemnity

shown in the Schedule

2. In the event of this Section continuing inforce for more than one Period ofInsurance the liability of the Companyshall not be accumulated or increasedthereby and the aggregate liability of theCompany during any number of Periodsof Insurance under this Section shall notexceed the Limits of Liability as defined in1(a) and (b) above

3. The Company agrees upon notification ofa claim to reinstate the Aggregate Limit ofIndemnity by any sum or sums paid orpayable under this Section provided that

a) such reinstated sum shall apply only to Employees not the subject to such claim

b) such reinstated sum shall only apply to acts of fraud or dishonesty committed after such date of notification

c) the Insured agrees to pay anappropriate additional premiumcalculated on the reinstated amount

Exclusions

The Company will not indemnify the Insuredin respect of

1. the amount stated in the Schedule inrespect of each and every claim

2. loss of interest loss of profits orconsequential loss of any kind

3. any loss arising from any act or acts offraud or dishonesty committed by anEmployee or Employees after thediscovery of a prior act of fraud ordishonesty committed by the sameEmployee or Employees

Improper Personal Financial Gain

Notwithstanding anything contained herein tothe contrary the Company shall not be liablefor any loss under this Section unless suchloss arises from the fraudulent or dishonestact of an Employee which is committed withthe intent of making and which results inimproper personal financial gain for anyEmployee whether committed alone or incollusion with others

Salary fees commissions and otheremoluments including salary increases andpromotions shall not constitute improperfinancial gain

Subject otherwise to the terms exceptionsand conditions of the Policy

THEFT BY EMPLOYEES

12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

119

THEFT BY EMPLOYEES

Special Conditions

1. Alteration of Risk

The Insured shall comply with the system ofcheck supervision and procedures forobtaining references from former employersall as declared to the Company Unless theCompany has consented in writing to anyalteration the Company shall not be liable tomake any payment if there shall be anychange in the nature of the Business of theInsured or any non-compliance with suchsystem of check supervision and procedures

2. Notice of Loss

Whether or not it is intended to make a claimthe Insured shall give notice in writing to theCompany within 14 days of discovery of

a) any act of fraud or dishonesty committedby any Employee or

b) reasonable cause for suspicion of fraud ordishonesty committed by any Employeewhich shall have come to the knowledgeof the Insured or of any representative ofthe Insured to whom is entrusted the dutyof superintendence or audit

3. Loss Prevention

On discovery of any act of fraud ordishonesty or circumstances which couldgive rise to a claim under this Section theInsured shall immediately take all steps toprevent loss or further loss

4. Reimbursement

The Insured shall give all information andassistance to enable the Company to sue forand obtain reimbursement of any monieswhich the Company shall have paid orbecome liable to pay under this Section

5. Deduction from Loss

All monies which but for the fraud ordishonesty of the Employee would becomepayable to him/her by the Insured and anymonies recovered from the Employee by theInsured shall be deducted from the loss

6. Recoveries

Any recoveries effected by the Insured shallbe applied in the following order

a) in reduction of the loss suffered by theInsured which would have been coveredby this Section but for the application ofthe Specific Limit of Indemnity and/orAggregate Limit of Indemnity as the casemay be

b) in reduction of the loss suffered by the Company

c) in reduction of the loss suffered by theInsured in respect of the Excess

7. Arbitration

If the Company admits liability for a claim butthe Insured cannot agree with the Companythe amount to be paid the disagreement willbe referred to an arbitrator appointed jointlyby both parties in accordance with the law inforce at the time The Insured cannot takeaction in law against the Company over thisdisagreement until the arbitrator has madehis award

12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

120

8. Condition Precedent

It is a condition precedent to any liability on the part of the Company under this Policy that –

a) the terms so far as they relate to anything to be done or complied with by the Insured are duly and faithfullyobserved and

b) the statements made and the answersgiven in the proposal herein beforereferred to are true and complete

9. Check and SupervisionStatement and Business Activities

Unless the Company shall consent in writingto any alteration the Company shall not beliable to make any payment under this policyif the nature of the business carried on shallbe changed or if the system of Check andSupervision as detailed in the writtenstatement or statements received by theCompany from the Insured is not adhered to


THEFT BY EMPLOYEES

12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

121

COMMERCIAL LEGAL EXPENSES SECTION


1. Definitions


Acts of ParliamentAll Acts of Parliament referred to in thisSection shall include any subsequentamendments re-enactments or regulationsand equivalent legislation enforceable withinthe Territorial Limits

AdministratorAbbey Legal Protection Ltd which administersthis insurance on the Companys behalf

Advisory LineThe telephone advisory service provided bythe Administrator

Any One ClaimAll claims or legal proceedings consequentupon the same original cause event orcircumstance arising during the Period ofInsurance shall be regarded as one claim

Appointed RepresentativeA consultant solicitor barrister or otherappropriately qualified person appointed bythe Administrator to act for the Insured inaccordance with the terms of this Section

Authorised PersonA person authorised by the Insured to driveor to be a passenger in an Insured vehicle

Awards of CompensationBasic and Compensatory Awards madeagainst the Insured by an EmploymentTribunal or settlement thereof agreed inconciliation proceedings subject to theAdministrators consent but not includingAdditional Special Protective Awards InterimRelief arrears of pay or any award ofdamages under the Equal Pay Act or arisingout of failure to comply with awards inrespect of reinstatement or re-engagementThe Company will not pay any fine award ordamages incurred by deliberately avoiding apayment or liability under statutory

requirements The Company will not pay anyredundancy payment or any monies due orproperly payable arising under or from acontract of employment service agreement orrelated document or from implied orincorporated terms of a contract of service

Co-InsuranceThe amount specified in the Schedule theInsured must bear in respect of Any OneClaim for the Insureds own accountexpressed as a percentage of LegalExpenses incurred over and above anyExcess specified in the Schedule

CompanyAXA Insurance UK plc

Contracting PartyA person or company including parentsubsidiary and associate company withwhom the Insured has a direct contractualrelationship

Debt Collection ServiceA debt collection service nominated by theAdministrator details of which have beenpassed to the Insured at inception or renewalof this Section which may be a solicitor ordebt recovery agent as agreed by theAdministrator

Due DateThe date monies owed to the Insuredbecome due and payable

EmployeeAny person under a contract of service orapprenticeship with the Insured orundergoing training under any governmentapproved training scheme under theInsureds control

ExcessThe amount specified in the Schedule theInsured must bear in Legal Expenses inrespect of Any One Claim before theCompany shall be liable to make any payment

12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

122

COMMERCIAL LEGAL EXPENSES

Increased ExcessThe amount specified in the Schedule theInsured must bear in Legal Expenses inrespect of Any One Claim before theCompany shall be liable to make anypayment if the Insured instructs an AppointedRepresentative other than that chosen by the Administrator

InjuryBodily injury or death but excluding anysickness or disease or any naturallyoccurring condition or degenerative process

InsuredAny company firm partnership or tradingindividual specified in the Schedule and atthe Insureds request any Employee includingdirector or partner of the Insured

Insured VehicleAny vehicle which is deemed to include anycaravan or trailer properly constructed andallowed to be towed by such vehicle andwhich is attached to it by normal means fortowing which is owned by hired or leased inconnection with the motor trade or one whichtakes part in racing rallies competitions ortrials of any kind

Legal Expensesa) Fees

i) Any fees expenses and otherdisbursements reasonably incurred bythe Appointed Representative with theAdministrators consent in connectionwith or in anticipation of any legalproceedings including costs andexpenses of expert witnesses

ii) Any costs incurred by other partiesinsofar as the Insured is held liable incourt tribunal or arbitrationproceedings to pay such costs orbecomes liable to pay such costsunder a settlement made with anotherparty with the Administrators consentbut excluding any costs which theInsured may be ordered to pay by acourt of criminal jurisdiction

iii) Any fees expenses or disbursementsreasonably incurred in an appeal towhich the Administrator has consentedor in resisting an appeal subject to theAdministrators consent against thejudgment of a relevant court tribunal orarbitrator as the case may be

b) Witness Attendance Allowance

Witness Attendance Allowance notexceeding £100 per day when any officermember or Employee of the Insured isabsent from work consequent upon attendingas a witness for the Insured at a hearingcourt tribunal or arbitration at the AppointedRepresentatives request Witness AttendanceAllowance shall be limited to £1,000 in AnyOne Claim

Maximum Sum in DisputeThe sum in dispute between the Insured andthe Contracting Party as specified in theSchedule above which the Company shallnot be liable to provide indemnity under Part4.1 of this Policy

Minimum Sum in DisputeThe sum in dispute between the Insured andthe Contracting Party as specified in theSchedule below which the Company shallnot be liable to provide indemnity under Part4.1 of this Policy

Period of InsuranceAs specified in the Schedule

Professional DutyDuty owed to or by the Insured by or to anindividual partner company or firm or adirector or employee thereof who or whichhas or to be in practice would be required tohave in force professional indemnityinsurance or an equivalent insuranceproviding indemnity in the event of anegligent act error or omission

12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

123


Professional ExpensesAny fees expenses and other disbursementreasonably incurred by the AppointedRepresentative in connection with any claimor proceedings including those incurred bythe Company in connection with such claimor proceedings but excluding any tax or VATadditional tax or VAT interest or penaltiesdemanded assessed or required by therelevant authorities or other penaltiesimposed by a court of criminal jurisdiction

PropertyLand and/or buildings thereon includingcontents fixtures and fittings owned occupiedby the Insured or otherwise for which theInsured is legally responsible

Road AccidentAn event which takes place within theTerritorial Limits causing loss or damage to anInsured Vehicle or to any personal propertyeither owned by the Insured or for which theInsured is legally responsible while suchproperty is in or on the Insured Vehicle or anevent which causes Injury to an AuthorisedPerson while such person is in on mounting ordismounting from an Insured Vehicle

Territorial LimitsThe United Kingdom of Great BritainNorthern Ireland the Channel Islands or theIsle of Man

2. The Cover

The Company hereby agrees to the extentand in the manner herein provided toindemnify the Insured against LegalExpenses Professional Expenses andAwards of Compensation as specified in therelevant Parts of Cover as set out in thisSection and its Schedule in connection withactivities within the scope and extent of thebusiness activity of the Insured

This is a claims made Section of the PolicyThis insurance only covers claims notified bythe Insured during the Period of Insurance

3. Limits of Indemnity

The maximum liability of the Company underthis Section is limited to the amountsspecified in the Schedule for a) and b) below

a) Any One Claim

b) All claims or legal proceedings madebrought or commenced and notifiedduring the Period of Insurance

4. Operative Parts

These only apply if shown in the Schedule

4.1 ContractThe Company agree to indemnify theInsured against Legal Expenses incurred byreason of the pursuit or defence of any claimor legal proceedings made by broughtagainst or commenced by the Insured withinthe Territorial Limits and notified during thePeriod of Insurance in a dispute with aContracting Party in connection with acontract of sale of goods or a contract for thehire of goods or a contract for the supply of aservice within the meaning laid down in theSale of Goods Act 1979 the Supply of Goodsand Services Act 1982 and the Sale andSupply of Goods Act 1995 provided that

a) Legal Expenses incurred in the pursuit ofany claim or legal proceedings shall belimited to 75% of the amount in dispute

b) the amount in dispute exceeds theMinimum Sum in Dispute specified in theSchedule

c) the amount in dispute is less than theMaximum Sum in Dispute specified in theSchedule

d) any investigation costs hereunder are firstsubject to the deduction of the Excess orthe Increased Excess

e) where the dispute relates to monies owedto the Insured and such liability iscontested before expiry of thirty daysfrom the Due Date a claim shall be madewithin three months of the Due Date

12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

124


f) where the dispute relates to monies owedto the Insured and where such liability isnot contested the Insured agrees to notifysuch dispute within thirty days of the DueDate to the Debt Collection Service andfurther agrees that use of the serviceshall be to the Insureds account

g) where the Debt Collection Service hasexhausted its normal recovery procedureand recommends to the Administrator thatlegal proceedings are necessary and arelikely to be successful the Administratorwill subject to the terms and conditions ofthis Policy provide the indemnity againstLegal Expenses from the start of suchproceedings

Exclusions to 4.1The Company shall not be liable to indemnifythe Insured hereunder in respect of claimsarising out of:

a) contracts performed outside the TerritorialLimits

b) breach or alleged breach of ProfessionalDuty

c) bills of exchange credit and securities orguarantee

d) assignment agency franchise or bailmentother than hire

e) contracts governed by or disputes relatingthe Consumer Credit Act 1974

f) employment duties

g) landlord and tenant disputes

h) construction contracts as defined by theHousing Grants Construction andRegeneration Act

i) motor disputes

j) an arbitration clause in the contract

4.2 EmploymentThe Company agree to indemnify theInsured against

i) Legal Expenses incurred by the Insuredin defending any claim or legalproceedings including appeals madebrought or commenced within theTerritorial Limits and notified during thePeriod of Insurance following a disputewith an Employee ex employee orprospective employee which arises out ofor relates to his contract of employmentwith the Insured or a breach ofemployment related legislation and

ii) Awards of Compensation in connectionwith such claim or legal proceedings

Provided that the Insured has sought theadvice of the Advisory Line as to theprocedure to be adopted and has acted onall such advice with due diligence:

a) prior to carrying out any disciplinaryprocedure or action which must havebeen specifically authorised by theAdvisory Line

b) prior to the dismissal of an Employeewhich must have been specificallyauthorised by the Advisory Line

c) prior to instituting a redundancyprogramme which must have beenspecifically authorised by the Advisory Line

d) upon notification formally or informally of acomplaint of sexual or racial discriminationor discrimination relating to disability

e) prior to altering the hours or time workedby an Employee which must have beenspecifically authorised by the Advisory Line

f) prior to altering the remuneration of anEmployee (other than in respect ofincreasing his wages or salary) whichmust have been specifically authorised bythe Advisory Line

12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

125


g) on becoming aware of any event orcircumstance that may be deemed to beconstructive dismissal including absencefrom work following an Employee walkingout with or without written notice

Exclusions to 4.2The Company shall not be liable to indemnifythe Insured hereunder in respect of:

a) Legal Expenses and Awards ofCompensation under any contractual orlegislative provision insofar as any claimarises from or is connected with anybusiness transfer falling within the scopeof the Transfer of Undertakings(Protection of Employment) Regulations1981 or the Acquired Rights Directive

4.3 Criminal Prosecution DefenceThe Company agree to indemnify theInsured against Legal Expenses incurred indefending a prosecution brought orcommenced within the Territorial Limits andnotified during the Period of Insurance in acourt of criminal jurisdiction including anappeal by the Insured against the service ofan improvement or Prohibition Notice underthe Health & Safety at Work Act 1974 or theFood Safety Act 1990

Exclusions to 4.3The Company shall not be liable to indemnifythe Insured hereunder in respect of claimsarising out of:

a) the ownership possession hiring or use ofa motor vehicle

b) any prosecution relating to or arising frominvestigations by the Inland Revenue HMCustoms and Excise or the Department ofSocial Security

c) any prosecution alleging unlawful violenceor dishonesty

4.4 Property Legal ProtectionThe Company agree to indemnify theInsured against Legal Expenses incurred inthe pursuit or defence of any claim or legal

proceedings made brought or commencedwithin the Territorial Limits and notified duringthe Period of Insurance and relating to:

i) a dispute over the possession of freeholdor leasehold Property

ii) a dispute involving actual or allegednegligence damage or nuisance toProperty

provided that:

a) the Property is owned or occupied by theInsured or is Property for which theInsured is legally responsible

b) the Insured will suffer financial loss if theInsured fails to pursue or defend theclaim or legal proceedings


a) any dispute concerning the Propertywhich relates to mining or othersubsidence or heave howsoever caused

b) any dispute arising from or relating to acontract other than agreement for usebetween the Insured and a third party

c) any dispute relating to rent tax planningor building regulations or decisionscompulsory purchase orders or renewalof a contract of use

4.5 Vehicle Legal ProtectionThe Company agree to indemnify theInsured against Legal Expenses arising outof any claim or legal proceedings madebrought or commenced within the TerritorialLimits and notified during the Period ofInsurance in connection with

i) the pursuit by the Insured or anAuthorised Person of legal rights to obtaina remedy or recover damages from otherparties following a Road Accident

ii) the pursuit by the Insured of any disputearising out of a contract entered into for

12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

the sale purchase hire lease hire purchaseservice repair or test of an Insured Vehicleincluding spare parts and accessoriesprovided that the amount in dispute exceedsthe Minimum Sum in Dispute specified in theSchedule

iii) the defence of a criminal prosecution ofthe Insured or an Authorised Personrelating to the ownership or use of anInsured Vehicle

iv) an application for the removal of a drivingdisqualification where suchdisqualification results from an incidentoccurring after inception of this Policy

v) representation of the Insured at a hearingfor the suspension revocation orcurtailment of the Insureds licence tooperate an Insured Vehicle

provided that the Insured Vehicle is properlyinsured as required by law

4.6 Data Protection ActThe Company agree to indemnify theInsured against Legal Expenses incurred indefending any claim or legal proceedingsmade brought or commenced within theTerritorial Limits and notified during thePeriod of Insurance arising out of the DataProtection Act 1998 including an appeal bythe Insured against a refusal of anapplication for registration or alteration ofregistered particulars or an appeal againstan Enforcement Deregistration or TransferProhibition Notice The Company furtheragree to indemnify the Insured againstcompensation awards which the Insured isordered to pay consequent upon the holdingloss or unauthorised disclosure of data asdefined in Section 22 or 23 of the DataProtection Act 1998

4.7 Tax & VAT InvestigationThe Company agree to indemnify theInsured against Professional Expensesincurred by the Insured in connection withany claim or proceedings made by or againstthe Insured within the Territorial Limits andnotified during the Period of Insurance inconnection with

Sub-part 7A – Inland Revenue Schedule Dand Corporation Tax Investigationsi) Correspondence discussions and

meetings with the Insured and on theInsureds behalf in order to respond to theInland Revenues requests and allegations

ii) Preparation and representation of theInsured at an Inland RevenueCommissioners Hearing and at an appealagainst a decision following such Hearing

provided that:

a) the Appointed Representative hasprepared and/or submitted the mostrecent Self-Assessment Return oraccounts irrespective of whether this isthe Return or accounts that has beentaken up for investigation by the InlandRevenue

b) the Inspector of Taxes has given notice ofdissatisfaction with the Tax Return and/oraccounts and has requested examinationof all business books and records

c) the Administrator has consented to anappeal

Sub-Part 7B – VAT Decisions and Penaltiesi) correspondence discussions and

meetings with the Insured and on theInsureds behalf in connection with thelocal review procedure in order toreach agreement with HM Customsand Excise

ii) preparation and representation of theInsured at a VAT and Duties Tribunal

iii) preparation and representation of theInsured at an appeal against a VAT


126

12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

and Duties Tribunal decision provided theAdministrator has consented to an Appeal

provided that:

a) the Insured is registered for VAT from thetime the prescribed limits are exceeded inaccordance with the provisions ofSchedule One of the VAT Act 1994

b) the Administrator has consented to anappeal

Sub-Part 7C – PAYE and P11DInvestigations

i) preparation and representation of theInsured in meetings and discussionswith the Inland Revenue

ii) preparation and representation of theInsured at an Inland RevenueCommissioners Hearing and at anappeal against a decision followingsuch Hearing

provided that:

a) an expression of dissatisfaction with theAssureds PAYE and/or NIC affairs hasfollowed an employer compliance visit bythe Inland Revenue or an expression ofdissatisfaction with the Assureds P11Ds orP9Ds and there is a reasonable prospectof disputing the officers allegations

b) the Administrator has consented to anappeal

Sub-Part 7D – Department of SocialSecurity National Insurance ContributionInvestigations

i) preparation and representation of theInsured in meetings and discussionswith the Department of Social Security

provided that:

a) the investigation follows the examinationof the PAYE records at the Insureds placeof business

Exclusions to 4.7The Company shall not be liable to indemnifythe Insured hereunder in respect of

a) the defence of any criminal prosecution

b) an enquiry under Section 60 of the VATAct 1994 or matters handled by theInvestigations Division of HM Customsand Excise the Special ComplianceOffices of the Inland Revenue Board

c) taxes fines interest or any other duties orpenalties imposed upon the Insured byany Revenue authority or court or tribunal

d) any claim made where corporation taxaccounts are submitted in a penaltyposition under S10 and/or S94 of theTaxes Management Act 1970

e) any claim made where Income TaxReturns or accounts or Self AssessmentReturns are submitted in a penaltyposition under S7 S93 and/or S95 of theTaxes Management Act 1970

f) the preparation and/or correction of SelfAssessment Returns accounts IncomeTax Returns P11Ds P35s VAT returns orany other statutory returns

g) technical or routine treatment of mattersnot connected with nor arising out of anexpression of dissatisfaction with theInsureds affairs

h) taxation proceedings which arise out ofnegligent misstatements or omissionsmade by or on behalf of the Insured inrespect of returns or accounts or wherethere has been a lack of reasonable carein the keeping of business books andrecords

i) any claim or proceedings which resultsolely from investigation or earlieraccounts or records

j) any investigation undertaken by theInland Revenue Special ComplianceOffices or under Section 60 of the VAT


127

12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

Act 1994 or matters handled by theInvestigations Division of HM Customs andExcise or the Inland Revenue BoardsInvestigation Office

k) an enquiry into the validity of a claim forWorking Families Tax Credit by anemployer

l) any dispute in connection with thepayment of the national Minimum Wage

m) a dispute or enquiry in respect of thenon-compliance with the IR35 legislation

4.8 Statutory LicenceThe Company agree to indemnify theInsured against Legal Expenses incurred inconnection with the suspension revocationimposed alteration of or refusal to renew alicence or certificate of registration issuedunder statute or statutory instrument or bygovernment or local authority to the Insured

provided that:

a) such licence or certificate of registration isnecessary to engage in the businessactivity of the Insured and has beendeclared to the Company in the Proposalor Renewal Declaration

b) the Insured has sought the advice of theAdvisory Line as to the procedure to beadopted immediately upon receipt of anyverbal or written warning from a person inauthority which in any way either directlyor indirectly affects or may affect theInsureds licence or certificate ofregistration and has acted on all suchadvice with due diligence

c) a claim under this Part is made within theTerritorial Limits and notified during thePeriod of Insurance


a) Legal Expenses incurred in disciplinary orinternal hearings conducted by authorities

charged with the regulation of the Insuredin the performance of Professional Dutynor for any appeal following such hearings

b) any claim or legal proceedings arising outof an alteration or refusal to renew alicence or certificate of registration whichis imposed by Act of Parliament

c) any costs incurred of and incidental tocomplying with a notice or order


The Company shall not be liable to indemnifythe Insured hereunder in respect of

1) the defence of the Insured in civil legalproceedings arising from

a) Injury

b) Loss destruction or damage of or toproperty

c) Alleged breach of any ProfessionalDuty

d) Any tortious liability (other than orspecified in Part 4)

2) any claim made brought or commencedoutside the Territorial Limits

3) Legal Expenses incurred before theAdministrators consent has been granted

4) any claim relating to or arising from anycause event or circumstance occurringprior to or existing at inception of thisPolicy and which the Insured knew orought reasonably to have known maygive rise to a claim or legal proceedingsby or against the Insured

5) fines or other penalties imposed by acourt

6) any claim or legal proceedings in respectof which the Insured is or but for theexistence of this Policy would be entitledto indemnity under any other insurancepolicy or legal aid


128

12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

7) any claim arising out of the deliberateconscious intentional or negligentdisregard by the Insured of the need totake all reasonable steps to avoid andprevent claims or legal proceedings

8) any dispute with Government or LocalAuthority departments concerning theimposition of statutory charges

9) disputes between Insureds as specified inthe Schedule or any endorsement theretoor with any parent or subsidiary companyor partner or Authorised Person

10) any dispute between the Insured theCompany the Administrator or theAppointed Representative

11) any claim arising out of intellectualproperty or breach of confidentialitywhether related to intellectual property ornot

12) any Legal Expenses incurred inconnection with a judicial review

13) any claim consequential loss legalliability or any loss or damage toproperty directly or indirectly caused byor contributed to by seepage pollution orcontamination of any kind

14) any claim directly or indirectly caused byor resulting from any electronic devicefailing to recognise interpret or processany date as its true calendar date

15) any expense consequential loss legalliability or any loss or damage toproperty directly or indirectly caused byor contributed to by:



6. General Conditions

1) ArbitrationAny dispute between the Insured theCompany or the Administrator shall bereferred to a single arbitrator who shall beeither a solicitor or barrister agreed upon byboth parties or failing agreement one who isnominated by the President of theappropriate Law Society or by the BarCouncil or appropriate professional bodywithin the Territorial Limits

All apportionment of the costs of the arbitrationshall be determined by the arbitrator

2) CancellationThis Section may be cancelled at any timeon the instructions of the Insured in writingand the premium shall be adjusted on thebasis of the Company receiving or retainingthe customary short-term premium on thefollowing basis:-

over 9 months unexpired term 50%



less than 3 months unexpired term Nil

This Section may also be cancelled by theCompany giving thirty days notice in writingto the Insured at the Insureds last knownaddress and the premium hereon shall beadjusted on the basis of the Companyreceiving or retaining pro rata premium

If the Insured is placed in liquidationreceivership or administration or adjudicatedbankruptcy or if any application is made tothe court or meeting convened for any suchpurpose this Section will lapse and theInsured will be entitled to a pro rata return ofpremium

Provided always that no return of premiumshall be allowed if the Insured has notified aclaim which has been admitted during thePeriod of Insurance


129

12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

Cancellation under this General Conditionshall not prejudice the rights of the Insured inrespect of any cause event or circumstancewhich has given or is likely to give rise to aclaim or legal proceedings and which hasalready been notified to the Administratorduring the Period of Insurance and in respectof which the Administrators consent to LegalExpenses has been given

3) Due ObservanceThe due observance of and compliance withthe terms provisions Exclusions andConditions of this Section insofar as theyrelate to anything to be done or compliedwith by the Insured shall be conditionsprecedent to any liability of the Company tomake any payment hereunder

4) Several Liability NoticeThe subscribing Underwriters obligationsunder Contracts of insurance to which theysubscribe are several and not joint and arelimited solely to the extent of their individualsubscriptions The subscribing Underwritersare not responsible for the subscription ofany co-subscribing Underwriter who for anyreason does not satisfy all or part of itsobligations

5) Proper LawThe parties are free to choose the lawapplicable to this insurance contract Unlessspecifically agreed to the contrary thisinsurance shall be subject to the Laws ofEngland and Wales

Conditions for Claims Settlement

1. Notification of ClaimsIt is a condition precedent to the Companysliability hereunder that the Administrator benotified in writing immediately the Insured isaware of any cause event or circumstancewhich has given or may give rise to a claimor legal proceedings involving the Insured assoon as the same shall come to the Insuredsattention If the Insured fails to notify theAdministrator within a period of six months

from the date the Insured became aware ofany cause event or circumstance which maygive rise to a claim or legal proceedingsduring the Period of Insurance any claim orlegal proceedings arising from that causeevent or circumstance will not be admitted

Where such notification has been given theCompany agree to treat any subsequentclaim or legal proceedings in respect of thecause event or circumstance notified asthough the claim or legal proceedings hadbeen made brought or commenced duringthe Period of Insurance

The Administrator will forward to the Insureda claim form which must be completed andreturned immediately

An investigation by the Inland Revenue intothe Insureds tax affairs shall be notified tocomply with this Condition at the time theInland Revenue send written notification ofdissatisfaction with those affairs to either theInsured or the Insureds representative A VATassessment written decision or notice of civilpenalty shall be notified to comply with thisCondition at the date at which the relevantauthority sends an assessment or writtendecision to the Insured A PAYE/DSS/P11Dassessment or written decision shall benotified to comply with this Condition at thedate at which the relevant authority sends anassessment or written decision to theInsured

Important procedure for employmentdisputes

If a Form ET1 (Originating Application) isreceived from an Industrial Tribunal theInsured must immediately complete a claimform and forward it to the Administratorincluding copies of Forms ET1 ET2 and ET3(Notice of Appearance by Respondent) Tocomply with the 21 days statutory time limitthe ET3 form must be returned without delay


130

12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

2. Administrators ConsentIt is a condition precedent to theAdministrators liability hereunder that itsconsent must firstly be obtained in writingThis consent will be given by theAdministrator on behalf of the Company ifthe Insured can satisfy the Administrator thatit is reasonable to incur Legal Expenses orProfessional Expenses and

i) there are reasonable prospects ofrecovery of damages or other remedy

or

ii) there are reasonable prospects of asuccessful defence or (but only if CriminalProsecution Defence cover or MotorDisputes cover is included) of significantmitigation of the Insureds loss

The decision to grant consent or to withholdit will be based on consideration of theAppointed Representatives opinion and thatof any advisers the Administrator may deemit necessary to consult

With the agreement of the Insured theAdministrator may provide assistance insettling disputes the costs of which will becovered under this Section subject to thepayment of the Excess or Increased Excesswithin the Limits of the Companys Liability

The Administrator at its discretion may requirethe Insured to obtain an opinion from Counselat the Insureds expense as to the merits of aclaim or legal proceedings If such opinionindicates that there are reasonable prospectsof defence of the claim or legal proceedingsthe cost of the opinion will be paid by theCompany within the Limits of the CompanysLiability for that claim or legal proceedings

In granting its consent the Administratorundertake to provide indemnity within theLimits of the Companys Liability to the Insuredsubject to the Terms and Conditions of thisPolicy and its Schedule but such consentdoes not imply that all Legal Expenses orProfessional Expenses will be paid

If after consent has been granted it is shownthat the particular claim or legal proceedingshas not been brought within the Terms andConditions of this Section and its Schedulesuch consent shall be withdrawn and noindemnity shall be provided The Companyshall be entitled to recover any LegalExpenses or Professional Expensespreviously paid

The Administrators consent previously givenmay be withdrawn at any time when itceases to be reasonable for Legal Expensesor Professional Expenses to be incurred

Notwithstanding any general consent grantedthe Company reserve the right to limit itsliability to the payment of Legal Expenses orProfessional Expenses incurred solely for thepurpose of indemnifying the Insured LegalExpenses or Professional Expenses incurredby the Appointed Representative for theroutine presentation of the Insureds affairs orfor matters which go beyond the immediatescope of the claim or legal proceedings shallbe deemed by the Administrator to falloutside the indemnity to be provided underthis Section Where in the course of a claimthe Company pay for an experts report ofcommercial benefit to the Insured theCompany shall have the right to recover fromthe Insured the cost of such experts report tothe extent that the cost is not recoveredelsewhere at the conclusion of the claim orlegal proceedings The Company shall not beresponsible for any expense which theInsured shall necessarily incur to continueengaging in the course of a claim or legalproceedings

If the Insured elects to proceed with thepursuit or defence of a claim or legalproceedings to which the Administratorsconsent has been refused through lack ofreasonable prospects and if the Insured issuccessful in such pursuit or defence theCompany will pay for Legal Expenses orProfessional Expenses incurred after theAdministrator had refused consent on behalfof the Company the terms and conditions ofthis Section


131

12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

In all cases the Insured will be advised of the granting or refusal of theAdministrators consent

3. Conduct of Claima) Choice of Appointed Representative

The Administrator will choose an AppointedRepresentative to act on behalf of theInsured in any claim under certain Sectionsas specified in the Schedule

If a claim is in respect of a dispute where theamount or value in dispute is less than thearbitration limit in the small claims court theAdministrator on behalf of the Companyretains the right to choose an AppointedRepresentative to carry out an investigationand attempt to negotiate a settlement Such settlement will be subject to theInsureds agreement which shall not beunreasonably withheld

Where recourse is necessary to a lawyer theInsured is free to choose an AppointedRepresentative to act in the name of and onbehalf of the Insured in any claim or legalproceedings to which the Administrator hasconsented The name and address of theAppointed Representative must be notified tothe Administrator A dispute arising from theInsureds choice may be referred to Arbitrationin accordance with General Condition 1

In selecting the Appointed Representativethe Insured shall have regard to the commonlaw duty to minimise the cost of any claim orlegal proceedings

In all cases the Appointed Representativeshall be appointed in the name of and onbehalf of the Insured

b) Disclosure to the AppointedRepresentative

The Insured must give to the AppointedRepresentative all necessary help andinformation including a complete and truthfulaccount of the facts of the case and allrelevant documentary or other evidence in

the Insureds possession The Insured mustprovide obtain or execute all documents asnecessary and attend meetings orconferences as requested Cover may bewithdrawn if the Insured fails to co-operate atall or within a reasonable time with theAppointed Representatives requests

c) The Administrators Access to Information

The Administrator is entitled to receive fromthe Appointed Representative anyinformation document or advice inconnection with any claim or legalproceedings even if privileged On requestthe Insured will give to the AppointedRepresentative any instructions necessary tosecure the required access

d) Payment of Legal Expenses Bills

All bills relating to any claim or legalproceedings which the Insured receives fromthe Appointed Representative should beforwarded to the Administrator without delayIf the Administrator so requires the Insuredmust ask the Appointed Representative tosubmit the bill of costs for taxation orcertification by the appropriate Law Societyor court

The Insured is responsible for payment of allLegal Expenses or Professional ExpensesThe Administrator will settle these direct ifrequested by the Insured to do so Bills mustbe certified by the Insured to the effect thatthe charges have been properly incurred andthis will be deemed authorisation to theAdministrator to settle on the Insureds behalf

The payment of some Legal Expenses orProfessional Expenses does not imply thatall Legal Expenses or Professional Expenseswill be paid The Administrator should beconsulted if the Insured is in doubt


132

12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

The Insured must not without theAdministrators written consent enter into anyagreement with the Appointed Representativeas to the basis of calculation of LegalExpenses The Administrator may withdrawconsent previously given at any time

e) Instruction of Counsel

If in the course of any claim or legalproceedings the Appointed Representativewishes to instruct Counsel Counsels nameand an explanation of the necessity for suchinstruction must be submitted to theAdministrator for consent to the proposedinstruction which will not be unreasonablywithheld

4. Offer of SettlementIt is a condition precedent to the Companysliability hereunder that the Insured mustinform the Administrator in writing as soon asan offer to settle a claim or legal proceedingsis received or payment into court is made Inany settlement the Insured must have regardto Legal Expenses incurred or likely to beincurred by the Company and the recoverythereof Under no circumstances must theInsured enter into any agreement to settlewithout the Administrators prior consentwhich will not be unreasonably withheld If the Insured unreasonably rejects an offerof settlement which the Administratorrecommend acceptance of no furtherindemnity shall be provided by the Company

5. Recovery of CostsWhenever the Insured is awarded damagesor agrees damages or any sum under theterms of any settlement Legal Expensesafter taxation or agreement of the AppointedRepresentatives bill of costs shall first besettled out of damages or any sum oramount recovered by the Insured

6. Appeal ProcedureIf following legal proceedings to whichAdministrator have consented the Insuredwishes to appeal against the judgment ordecision of a court or tribunal the grounds for

such appeal must be submitted to theAdministrator through the AppointedRepresentative immediately or as soon aspracticable so that the Administrator mayconsider whether to consent to such furtheraction If an appeal is lodged against ajudgment or decision of a court or tribunalmade in favour of the Insured following legalproceedings to which the Administrator haveconsented the Insured must notify theAdministrator immediately in order that covershall continue The Administrator will informthe Appointed Representative of its decisionIf Administrator so require it the Insured mustco-operate in an appeal against thejudgment or decision of a court or tribunal

7. Minimising Claims or LegalProceedings

The Insured must use every endeavour andtake all reasonable measures to minimisethe cost and effect of any claim or legalproceedings under this Section

8. Fraudulent ClaimsIf the Insured makes any request forpayment under this Section knowing it to befraudulent or false in any respect or oughtreasonably in the circumstances know it tobe fraudulent or false where there iscollusion between any parties to the disputethis Section shall become void and anypremiums paid hereunder shall be forfeited

9. Insolvency or Liquidation of the Insured

If the Insured becomes insolvent or is placedin liquidation during the course of any claimor legal proceedings to which theAdministrator have given support theCompany shall reserve the right to withdrawthat support The Insured shall be deemedinsolvent or in liquidation upon theappointment of an office holder within themeaning given by section 233(1) or 372(1) ofthe Insolvency Act 1986 or upon theappointment of a receiver within the meaninglaid down in the Companies Act 1985


133

12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

10. Value Added TaxIf the Insured is registered for VAT theCompany will not pay the VAT element ofany Legal Expenses or ProfessionalExpenses bills

Legal Advice Helpline

This Section provides the Insured withunrestricted access to a confidential 24 hourlegal advisory service If you have a legalproblem you can obtain free legal advicesimply by telephoning 0870 241 8178

While this Section remains in force theservice may be used as often as necessary


134

12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

TERRORISM SECTION

In consideration of the payment of thePremium in respect of the Period ofInsurance the cover provided under theSections shown under the Terrorism Sectionof the Schedule of this Policy is extended toinclude loss destruction or damage to theProperty Insured or CONSEQUENTIALLOSS where covered occasioned by orhappening through or in consequence ofTerrorism as hereinafter defined for thepurposes of this Terrorism Section

Terrorism is defined for the purposes of thisTerrorism Section only as

1. an act of any person(s) acting on behalfof or in connection with any organisationwhich carries out activities directedtowards the overthrowing or influencingby force or violence of any governmentde jure or de facto as certified by HerMajestys Government or HM Treasury orany successor or relevant authority

or

2. an act of any person(s) acting alone andnot on behalf of or in connection with anyorganisation who carries out activitiesdirected towards the overthrowing orinfluencing by force or violence of anygovernment de jure or de facto and suchact not being certified by Her MajestysGovernment or HM Treasury or anysuccessor relevant authority and in theevent of any challenge to such non-certification the refusal to certify beingupheld by a Tribunal ruling confirmingsuch non-certification

Provided always that the insurance providedby this Terrorism Section is

A. in respect only of the insurance providedby Paragraph 1 of this Terrorism Sectionnot subject to the policy exclusions but issubject to the following War and AlliedRisks exclusion

Loss destruction or damage to the PropertyInsured or CONSEQUENTIAL LOSSoccasioned by riot civil commotion warinvasion act of foreign enemy hostilities(whether war is declared or not) civil warrebellion revolution insurrection or military orusurped power nationalisation confiscationrequisition seizure or destruction by thegovernment or any public authority

B. in respect only of the insurance providedby Paragraph 2. of this Terrorism Sectionnot subject to any terrorism exclusionapplicable to loss destruction or damageto Property Insured or CONSEQUENTIAL LOSS

C. subject to the following additional exclusions

1) Electronic Risks ExclusionThis insurance does not cover any losseswhatsoever directly or indirectly caused by orcontributed to by or arising from oroccasioned by or resulting from

loss destruction or damage to any computeror other equipment or component or systemor item which processes stores transmits orretrieves data or any part thereof whethertangible or intangible (including but withoutlimitation any information or programs orsoftware) and whether the property of theInsured or not where such loss destruction ordamage or CONSEQUENTIAL LOSS iscaused by Virus or Similar Mechanism orHacking or Denial of Service Attack

For the purposes of this Exclusion thefollowing definitions shall apply

Virus or Similar MechanismVirus or Similar Mechanism means programcode programming instruction or any set ofinstructions intentionally constructed with theability to damage interfere with or otherwise


135

12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

TERRORISM

adversely affect computer programs datafiles or operations whether involvingself-replication or not The definition ofVirus or Similar Mechanism includes butis not limited to Trojan horses worms andlogic bombs

HackingHacking means unauthorised access to anycomputer or other equipment or componentor system or item which processes storestransmits or retrieves data

Denial of Service AttackDenial of Service Attack means any actionsor instructions constructed or generated withthe ability to damage interfere with orotherwise affect the availability of networksnetwork services network connectivity orinformation systems Denial of ServiceAttacks include but are not limited to thegeneration of excess traffic into networkaddresses the exploitation of system ornetwork weaknesses and the generation ofexcess or non-genuine traffic between andamongst networks

2) Excluded PropertyThis insurance does not cover any losseswhatsoever directly or indirectly caused by orcontributed to by or arising from oroccasioned by or resulting from lossdestruction or damage or CONSEQUENTIALLOSS in respect of

i) any property located outside EnglandWales and Scotland

ii) any nuclear installation or nuclear reactor

iii) any property which is specificallyexcluded elsewhere in this policy

iv) any property which is insured by or wouldbut for the existence of this Policy beinsured by any form of transit aviation ormarine policy

D. subject to the following additional Policyterms and conditions

1) In any action or other proceedings wherethe Company alleges that any lossdestruction or damage is not covered bythis Terrorism Section the burden ofproving that such loss destruction ordamage or CONSEQUENTIAL LOSS iscovered shall be upon the Insured

2) Except where otherwise indicated in thisTerrorism Section the insurance providedby this Terrorism Section is subject to allthe terms definitions exclusions conditionsand provisions of this Policy Subject toany limits stated within this TerrorismSection the Companys liability in respectof all losses arising out of any oneoccurrence and in the aggregate in anyone period of insurance shall not exceedthe limits as otherwise specified underthis Policy

E. in respect only of the insurance providedby Paragraph 2. of this Terrorism Sectionsubject to the following additional policy term

the liability of the Company in respect of lossdestruction or damage to Property Insured orCONSEQUENTIAL LOSS directly orindirectly caused by contributed to byresulting from or arising out of or inconnection with biological chemical ornuclear pollution or contamination will besubject to a limit of up to £25 million any oneloss and in the aggregate during any oneperiod of insurance

136

12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

137

COMPUTER INSURANCE SECTION

Definitions

Computer Equipmenta) All computer equipment (including

interconnecting wiring fixed disks andtelecommunications equipment used forthe storage and communication ofelectronically processed data) butexcluding any such computer equipmentcontrolling a manufacturing process

b) Ancillary Equipment solely for use withthe computer equipment comprising airconditioning equipment generatingequipment uninterruptable power supplyvoltage regulating equipment temperatureand humidity recording equipmentelectronic access equipment heat smokeand water detection equipment lightningand transient over voltage protectiondevices computer furniture gas floodingcylinders and pipework and computerroom partitioning

c) Proprietary Software Programs and otherinformation stored upon fixed disks

d) All current and back up computer records(excluding paper records of anydescription) incorporating storedprograms and/or information thereon)

owned by or on deferred purchase leasedhired or rented to the Insured or whilst ontrial with a view to purchase by the Insured

DAMAGEThe word DAMAGE in capital letters shallmean loss destruction or damage

Proprietary Software ProgramsThe package of software programspurchased by the Insured with the ComputerEquipment at the original date of purchaseplus any subsequent upgrades excluding anybespoke computer software without the priorconsent of the Company

Deferred PurchaseAn arrangement whereby the Insured entersinto an agreement which entitles the Insuredto defer payment for Computer Equipmentfor a period exceeding 90 days (or a periodin excess of usual trade credit)

Indemnity PeriodThe period beginning with the occurrence ofan Insured Event and ending not later thanthe number of months thereafter shown inthe Schedule during which the computeroperations are affected as a result of theInsured Event

PremisesThe situation shown in the Schedule

Insured Event

i) DAMAGE insured under Part 1 and/orPart 2 of this Section

ii) Loss distortion corruption or erasure ofprograms and/or information insuredunder Part 2 of this Section

iii) DAMAGE where the cost of repair orremedy is recoverable under anyguarantee or agreement for maintenancerental hire or lease or any provision in anagreement for the supply of the Computer Equipment


12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

138

COMPUTER INSURANCE

iv) DAMAGE to any item of Category (a) or(b) of the Computer Equipment due to itsown breakdown or derangement

v) the accidental failure or fluctuations ofthe supply of electricity to Categories (a)and (b) of the Computer Equipment atthe Premises in which the ComputerEquipment is situated

vi) the accidental failure of anytelecommunications system (other thansatellite systems) used in connection withthe Computer Equipment

vii) the Insured being denied access to theComputer Equipment due to

i) DAMAGE to the Computer Equipmentat or in the vicinity of the Premises

ii) the exercise by any authority of itspowers for the sole purpose ofsafeguarding life or property

Loss of Interesti) interest payable in respect of loans raised

ii) interest foregone on reduction ininvestment capital in lieu of loans raisedas a direct result of minimising or tominimise the effect of the interruption or interference

12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

139

COMPUTER INSURANCE

Indemnity

The Company agrees if any ComputerEquipment described in the Schedule be lostdestroyed or damaged at the Premises theCompany will pay the Insured the amount ofthe DAMAGE or at the Companys optionreplace or repair the Computer Equipment orany part of it

Exclusions applicable to Part 1

1. BreakdownThe Company will not be liable forDAMAGE to the property described inparagraphs (a) and (b) of the DefinitionComputer Equipment due to its ownbreakdown or derangement unless theInsured have in force a maintenanceagreement with the manufacturers orother approved company in respect ofsuch Computer Equipment providing for

a) free repairs to or replacement of theComputer Equipment followingbreakdown or stoppage from anyinternal cause other than thenegligence of the Insured

b) preventative maintenance oradjustment of mechanical moving parts

2. Excluded PerilsThis Part does not cover DAMAGE (otherthan whilst in transit) caused by firelightning explosion aircraft or other aerialdevices or articles dropped therefrom riotcivil commotion strikers locked outworkers persons taking part in labourdisturbances malicious persons theftearthquake storm flood escape of waterfrom any tank apparatus or pipe or impactby any road vehicle or animal

Special Condition applicable to Part 1

Declaration of ValuesThe Insured shall prior to each renewalsupply the Company with declarations of thenew replacement value of each of thecategories of Computer Equipment insured

Part 1 – Computer Equipment

12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

140

COMPUTER INSURANCE

Part 2 – Reinstatement of Data

Indemnity

The Company will indemnify the Insured inthe event of loss distortion corruption orerasure of programs and/or information fromany cause not otherwise excluded toproperty described in paragraphs (c) and (d)of the Definition - Computer Equipmentwhilst at the Premises

Provided that

a) the liability of the Company is limitedsolely to the cost of reinstating data

b) the Company shall not be liable forDAMAGE to software insured under Part 1

Exclusions applicable to Part 1and Part 2

The insurance by Parts 1 and 2 does not cover

1. ExcessThe first £100 of each and every claim

2. Maintenance AgreementDAMAGE recoverable under themaintenance agreement or any warrantyor guarantee or which would berecoverable but for breach of the Insuredsobligations under the agreement

3. Consequential LossFinancial loss loss of profits loss due todelay and or any consequential loss ofany kind whatsoever not specificallyinsured by this Section

4. Lease Hire Rent Loan or SaleDAMAGE or loss resulting from DAMAGEto any Computer Equipment which is

i) offered or to be offered for lease hirerent or loan by the Insured

ii) leased hired rented or lent by theInsured to others

iii) offered or to be offered for sale or soldby the Insured where the sale of suchComputer Equipment is in the courseof the Business of the Insured

5. Property of OthersDAMAGE or loss resulting from DAMAGEto any Computer Equipment which is notowned leased rented hired or loaned tothe Insured whilst in the custody orcontrol of the Insured for programmingrepair service adjustment alterationstorage or transit purposes

12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

141

COMPUTER INSURANCE

Clauses applicable to Parts 1 and 2

ReinstatementIn the event of the Property Insured by Parts1 and 2 being destroyed or damaged theamount payable shall be the reinstatement ofthe property

For this purpose reinstatement shall mean

a) Where any item of Computer Equipmentsuffers DAMAGE to the extent that repairis uneconomic or impractical itsreplacement by new Computer Equipmentof equal performance and/or capacity or ifsuch be impossible its replacement byComputer Equipment having the nearesthigher performance and/or capacity to theComputer Equipment lost or damaged

b) Where the Computer Equipment suffersDAMAGE the repair of the DAMAGE andthe restoration of the damaged portion ofthe Computer Equipment to a workingcondition substantially the same as butnot better or more extensive than itscondition when new

provided that:

i) The liability of the Company for loss ofor DAMAGE to Computer Equipmentshall not exceed the Sum Insuredstated in the Schedule or additionallyprovided under the Automatic CoverCondition

ii) The work of Reinstatement commences and is carried out without unreasonable delay

iii) No payment beyond the amount whichwould have been payable if this Conditionhad not been incorporated shall be madeuntil the cost of Reinstatement shall havebeen incurred

iv) No payment beyond the amount whichwould have been payable if this Conditionhad not been incorporated shall be madeif at the time of any DAMAGE to thesame Computer Equipment insured itshall be covered by any other insuranceeffected by or on behalf of the Insuredwhich is not upon a Reinstatement basis

v) Each item insured is declared to beseparately subject to the followingcondition of average namely:-

If at any time of Reinstatement the sumrepresenting 85% of the cost which would have been incurred inReinstatement in the event there hadbeen a total loss exceeds the SumInsured or any further increase allowedunder the provisions of the AutomaticCover Clause at the time of DAMAGE to the Computer Equipment the Insured shall be considered as being his own insurer for the difference andbear a rateable proportion of theDAMAGE accordingly

vi) Where by reason of the above provisionsno payment is made beyond the amountwhich would have been payable if thisCondition had not been incorporated therights and liability of the Company andthe Insured in respect of the DAMAGEshall be subject to the terms andconditions of this Policy as if thisCondition had not been incorporated

12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

142

COMPUTER INSURANCE

Transit or AbroadThe Insurance by Parts 1 and 2 extends tocover the Property Insured thereby whilst atany other situation or whilst in transitanywhere in the world The liability of theCompany shall not exceed 10 % of the SumInsured under Part 1 or £100,000 any oneloss whichever is the less whilst theComputer Equipment is in transit or locatedoutside the United Kingdom or Republic of Ireland

Theft from Unattended VehiclesThe liability of the Company shall not exceed£5,000 any one loss in respect of theft fromunattended vehicles

Limit of LiabilityThe liability of the Company under Parts 1and 2 shall not exceed

i) in the whole the total sum insured or inrespect of any item its sum insured at thetime of the DAMAGE

ii) the sum insured remaining afterdeduction for any other interruption orinterference consequent upon DAMAGEoccurring during the same Period ofInsurance unless the Company shall haveagreed to reinstate any such sum insured

Extensions of Cover applicable to Parts 1 and 2

The Cover extends to include

Debris Removal CostsCosts necessarily and reasonably incurredwith the consent of the Company in removalof debris and the protection of the machinery consequent upon DAMAGEinsured by this Section Provided the liabilityof the Company under this extension shallnot exceed 10% of the Sum Insured underPart 1 or £50,000 whichever is the less

Consulting Engineers Fees andInvestigation CostsCosts (including consulting engineers fees)incurred with the prior consent of theCompany in conducting investigations and/ortests into possible repair replacement orreinstatement of Computer Equipmentsuffering DAMAGE regardless of whethersuch investigations and/or tests aresuccessful or not

Expediting CostsCosts necessarily and reasonably incurred inmaking temporary repairs upon and/orexpediting the repair reinstatement orreplacement of insured items as a result ofDAMAGE (but excluding costs recoverableunder Part 3) provided that the liability of theCompany shall not exceed 10% of the costof such loss or damage or £50,000whichever is the less

Automatic CoverAdditional Computer Equipment belonging tothe Insured or for which they are responsibleat any existing Premises shown in theSchedule until the next renewal date at noadditional charge provided that theCompanys liability under this Clause doesnot exceed £250,000 at any one Premises or10% of the sum insured under Part 1whichever is the less

12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

143

COMPUTER INSURANCE

Incompatibility of RecordsWhere Reinstatement of Data is insured theCompany will indemnify the Insured inrespect of

a) the cost of modifying the ComputerEquipment insured under Part 1

or

b) the cost of replacing the Data CarryingMaterials together with Reinstatement of Data

whichever is the less

as a result of an indemnifiable loss toachieve equivalent compatibility to thatexisting immediately prior to the loss due toundamaged Data Carrying Materials beingincompatible with the replacement ComputerEquipment provided that:-

i) the replacement Computer Equipment is the nearest equivalent to that lost or damaged

ii) the amount payable under this Extensionshall not exceed 50% of the Sum Insuredunder Part 2 or £50,000 whichever is the less

Loss Avoidance MeasuresReasonable costs incurred in takingexceptional measures to prevent or mitigateimpending DAMAGE for which indemnity isprovided by Parts 1 and 2 provided that

a) DAMAGE would reasonably be expectedif such measures were not implemented

b) the Company are satisfied that DAMAGEhas been avoided or mitigated by meansof the exceptional measures

c) the amount payable will be limited to thecost of DAMAGE which would haveotherwise occurred

d) the terms and conditions of this Policyapply as if DAMAGE had occurred

e) the liability of the Company under thisExtension shall not exceed 10% of theSum Insured under Parts 1 and 2 or£50,000 whichever is the less

Accidental Discharge of Gas Flooding SystemsThe cost of recharging gas flooding systems installed solely for the protection of the Computer Equipment followingaccidental discharge

provided that:-

a) the Company shall not be liable underthis Extension for any loss as a result of gradual leakage or discharge or drop in pressure

b) the Insured shall maintain at his ownexpense the gas flooding system inaccordance with the suppliers and/ormakers recommendations

c) the Companys liability shall not exceed£10,000 any one loss or 10% of the Sum Insured under Part 1 whichever isthe less

Virus Seek and Destroy CostsCosts necessarily and reasonably incurredwith the Companys consent in locating andremoving a detected computer virus infectingany insured host program or disk providedthat the amount payable under thisExtension shall not exceed 10% of the SumInsured under Part 1 or £5,000 whichever isthe less

12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

144

COMPUTER INSURANCE

Research and Development CostsCosts of re-writing any data processingresearch or development project(s) to thestage they had reached immediately prior tothe DAMAGE but excluding any benefit tothe Insured which would have been obtainedfrom completion of the project(s) had theDAMAGE not occurred provided

i) that Part 2 is insured

ii) that the amount payable in respect of anyone claim shall not exceed the suminsured under Part 2 or £5,000 whicheveris the less

iii) that the Insured has fully complied withparagraphs (d) and (e) of GeneralCondition 3 (Precautions)

Special Conditions applicable to Parts 1 and 2

Unattended Vehicle SecurityIt is a condition precedent to liability underParts 1 and 2 that whilst any item ofComputer Equipment is being carried in avehicle which is left unattended

i) the doors of the vehicle must be lockedand all its windows and other openingsfully closed and properly fastened

ii) the vehicle must be in a locked garage orlocked parking area if left overnight

iii) the Computer Equipment must beconcealed from view in a locked bootwhere such facilities are available orconcealed from view by other securemeans where such facilities areunavailable (Secure shall mean securitydevices which have been approved by the Company)

12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

145

COMPUTER INSURANCE

Part 3 – Increase in Cost of Working

Indemnity

If the computer operations of the Businessare interrupted or interfered with due to theoccurrence during the period of insurance of an Insured Event the Company will pay as Increase in Cost of Working the additionalexpenditure necessarily and reasonablyincurred by the Insured (including Loss of Interest) during the Indemnity Period in consequence of such interruption or interference

The liability of the Company shall not exceedin any one period of insurance

a) the sum insured stated in the Scheduleand/or

b) in respect of any Loss of Interest 10% ofthe sum insured stated in the Schedule

Clauses applicable to Part 3

Additional Rental In addition to the limit of the Companysliability under this Part the Company willindemnify the Insured against the payment ofadditional lease or rental charges up to anamount not exceeding £15,000 arising out ofthe replacement of a lease/hire agreement inrespect of the Computer Equipment by anew contract for similar Computer Equipmentand consequent upon DAMAGE insuredunder Part 1 of this Section

Professional Accountants ChargesAny particulars or details contained in theInsureds books of account or other businessbooks or documents which may be requiredunder Special Condition 2 of this Part for thepurpose of investigating or verifying anyclaim hereunder may be produced byprofessional accountants if at the time theyare regularly acting as such for the Insuredand their report shall be prima facie evidenceof the particulars and details to which suchreport relates

The Company shall pay to the Insured thereasonable charges payable by the Insuredto their professional accountants forproducing such particulars or details of anyother proofs information or evidence as maybe required by the Company under the terms of Special Condition 2 of this Partand reporting that such particulars or detailsare in accordance with the Insureds books of account or other business books or documents

Provided that the sum of the amount payableunder this clause and the amount otherwisepayable under this Part shall in no caseexceed the liability of the Company as stated

Current Cost AccountingFor the purpose of this Part any adjustmentimplemented in current cost accounting shallbe disregarded

Value Added TaxTo the extent that the Insured is accountableto the tax authorities for Value Added Tax all terms in this Part shall be exclusive ofsuch tax

Exclusions applicable to Part 3

This Part does not cover

1. Costs of Reinstatement of InformationCosts of reinstatement of programsand/or information onto ComputerRecords and/or Fixed Disks

2. Exclusion PeriodsIncrease in Cost of Working incurred during

i) the first 24 hours following breakdownor derangement of any item ofCategory (a) of the DefinitionComputer Equipment if a maintenancerental hire or lease agreement is not in force on such item - Insured Event (iii) refers

12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

ii) the first 30 minutes in respect of failureof the supply of electricity - InsuredEvent (v) refers

iii) the first 4 hours in respect of failure oftelecommunications equipment -Insured Event (vi) refers

3. Deliberate Supply/Service Withdrawal

The deliberate act of the Insured or anysupply authority nor the exercise by anysuch supply authority of its power towithhold or restrict operation of the supplyor system nor the inability of the Insuredor any such authority to maintain thesupply or system due to industrial actionby any of its employees

4. Acts of TelecommunicationsAuthoritiesThe failure of any telecommunicationssystem directly or indirectly due to

a) the deliberate act of anytelecommunications authority or theexercise by any authority of its powersto withhold or restrict operation of thesystem or the inability of the authorityto maintain the system due toindustrial action by its employees

b) the use by the Insured of anyequipment which is not approved bythe telecommunications authority asproperly installed and compatible

Special Conditions applicable to Part 31. Alterations

This Part shall be avoided if after thecommencement of this insurance theBusiness be wound up or carried on by a liquidator or receiver or permanently discontinued

2. Claims Conditionsa) In the event of any loss destruction or

damage in consequence of which a claimis or may be made under this Part theInsured shall

- notify the Company immediately

- deliver to the Company at the Insuredsexpense within 7 days of its happeningfull details of loss destruction ordamage caused by riot civil commotionstrikers locked-out workers personstaking part in labour disturbances ormalicious persons

- with due diligence carry out and permitto be taken any action which may bereasonably practicable to minimise orcheck any interruption of orinterference with the Business or toavoid or diminish the loss

b) In the event of a claim being made underthis Part the Insured at their own expense shall

- not later than 30 days after the expiryof the Indemnity Period or within suchfurther time as the Company mayallow deliver to the Company in writingparticulars of their claim together withdetails of all other insurances coveringproperty used by the Insured at thePremises for the purpose of theBusiness or any part of it or anyresulting and consequential loss

- deliver to the Company such books ofaccount and other business booksvouchers invoices balance sheets andother documents proofs informationexplanation and other evidence asmay be reasonably required by theCompany for the purpose ofinvestigating or verifying the claimtogether with if demanded a statutorydeclaration of the truth of the claimand of any matters connected with it

COMPUTER INSURANCECOMPUTER INSURANCE

12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

147

COMPUTER INSURANCE

c) If the terms of this condition have notbeen complied with

- no claims under this Part shall bepayable and

- any payment on account of the claimalready made shall be repaid to theCompany forthwith

Clauses applicable to Parts 1,2and 3

Payments on AccountIn the event of loss the Company will makemonthly payments on account to the Insuredif desired

Waiver of Subrogation RightsThe cover provided by this Section isextended to indemnify the categories ofusers shown below and the Company waiverights of recovery or subrogation against:-

i) any parent company of the Insured

ii) any subsidiary company of the Insured

iii) any subsidiary company of a parentcompany of whom the Insured are a subsidiary

iv) any user of the Computer Equipmentexplicitly authorised by the Insured

provided that

a) any users so included observe andfulfil the terms and conditions of thisPolicy as if they were the Insured

b) the Insured do not receive any form ofindemnity or damages from such users

Automatic ReinstatementSums Insured or Limits of Indemnity will bereinstated from the date of occurrence of anyclaim at additional premium The Companywill waive the additional premium if the costof the claim does not exceed £25,000

Misuse or Contamination of Computer SystemsInsofar as this Section covers DAMAGEand/or Reinstatement of Data resulting frommisuse of the Computer Equipment theliability of the Company in respect of suchDAMAGE and or Reinstatement of Data shallnot exceed £100,000 (or the sum insured orany other stated limit of liability if less) afterthe application of all the provisions of theSection including any Excess

Misuse of the Computer Equipment shallmean the deliberate or accidental misuse orcontamination of any computer and/orcomputerised system (including programsand data) from

a) any act executed through accessing the system

b) any infection of any kind within the system

General Exclusions

This Section does not Cover1. War Risks

Any loss or damage directly or indirectlyoccasioned by or in consequence of warinvasion acts of foreign enemieshostilities (whether war be declared ornot) civil war rebellion revolutioninsurrection military or usurped power orconfiscation or nationalisation orrequisition or destruction of or damage toproperty by or under the order of anygovernment or public or local authority

2. Nuclear RisksLoss destruction or damage to property orloss expense or consequential lossdirectly or indirectly caused by or arising from


12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

148


ii) the radioactive toxic explosive or other hazardous properties of anyexplosive nuclear assembly or nuclear component

4. Sonic BangsAny loss directly caused by the pressurewaves of aircraft or other aerial devicestravelling at sonic or supersonic speeds

4. Pollution or ContaminationDAMAGE caused by pollution orcontamination (unless otherwiseexcluded) except DAMAGE caused by

a) pollution or contamination which itselfresults from any DAMAGE insured

b) any DAMAGE insured which itselfresults from pollution or contamination

5. Intentional ActsDAMAGE caused by

a) the intentional act or wilful neglect ofthe Insured:

b) i) intentional overloading

ii) testing or experiments involving theimposition of any abnormal conditions

6. Wear and TearDAMAGE solely due to

a) wear and tear gradual deterioration or rust

b) gradually developing defects

c) scratching or chipping of painted orpolished surfaces

d) erosion or corrosion

but this shall not exclude subsequent lossor damage not otherwise excluded

7. Guarantees of PerformancePenalties for delay or detention or inconnection with guarantees ofperformance or efficiency

8. Excluded PartsDAMAGE to safety or protective devicesdue to their functioning

9. Date RecognitionDAMAGE directly or indirectly caused byor contributed to by or arising from thefailure of any computer or otherequipment data processing serviceproduct microchip micro processorintegrated circuit embedded chip orsimilar device computer software programor process or any other electronic systemor any design or advice in connection withany of the foregoing irrespective ofownership possession or use andwhether occurring before during or afterthe Year 2000




but this shall not exclude subsequentDAMAGE not otherwise excludedwhich itself results from fire lightningexplosion aircraft or other aerialdevices or articles dropped therefromriot civil commotion strikers locked outworkers persons taking part in labourdisturbances malicious persons theftearthquake storm flood escape ofwater from any tank apparatus or pipeor impact by any road vehicle oranimal provided such contingency isinsured by this Section

12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

149

COMPUTER INSURANCE

10. Terrorism Applicable to Parts 1 2 and 3 of this Section


Loss damage cost or expense ofwhatsoever nature directly or indirectlycaused by resulting from or in connection with


2. any action taken in controllingpreventing suppressing or in any wayrelating to any act of Terrorism


In the event any portion of this exclusionis found to be invalid or unenforceable the remainder shall remain in full forceand effect

Definition – TerrorismFor the purpose of this exclusion an act ofTerrorism shall mean an act including butnot limited to the use of force or violenceand or threat thereof of any person orgroup(s) of persons whether acting aloneor on behalf of or in connection with anyorganisation(s) or government(s)committed for political religious ideologicalor similar purposes including the intentionto influence any government and or put thepublic or any section of the public in fear

11. Northern IrelandDAMAGE in Northern Ireland occasionedby or happening through or inconsequence directly or indirectly of

i) civil commotion

ii) TERRORISM as defined under Terrorism

In any action suit or other proceedings where the Company alleges that byreason of this definition any DAMAGE isnot covered by this Section the burden ofproving that such DAMAGE is coveredshall be upon the Insured

12. Error Virus or Similar Mechanism or Hacking


1. Error Virus or Similar Mechanism orHacking

i) In respect of PART 1 – COMPUTEREQUIPMENT

DAMAGE to Computer Equipment orother equipment or component orsystem or item which processes storestransmits or retrieves data or any partthereof whether tangible or intangible(including without limitation anyinformation or programs or software)directly or indirectly caused byoccasioned by or arising fromprogramming or operator error Virus orSimilar Mechanism or Hacking

ii) In respect of PART 2 –REINSTATEMENT OF DATA

loss directly or indirectly causedoccasioned by or arising fromprogramming or operator error Virus or Similar Mechanism or Hacking

iii) In respect of PART 2 – INCREASEIN COST OF WORKING

loss in consequence directly orindirectly of programming or operatorerror Virus or Similar Mechanism or Hacking

12879_Z1487TP_POL.qxd 22/5/06 12:08 pm


150


a) Virus or Similar Mechanism shall meanprogram code programming instruction orany set of instructions intentionallyconstructed with the ability to damageinterfere with or otherwise adverselyaffect computer programs data files oroperations whether involving self-replication or not


b) Hacking shall mean unauthorised accessto any computer or other equipment orcomponent or system or item whichprocesses stores transmits or retrieves data

General Conditions

1. Claims Notification and RequirementsIn the event of loss or damage for whicha claim is to be made under this Sectionthe Insured shall retain any damagedmachinery or parts for inspection

2. Claims SettlementThe Company shall be entitled to takeover defend or settle any claim in thename of the Insured

3. PrecautionsThe Insured shall

a) exercise diligence in complying withany statute or order

b) maintain the Computer Equipment in good order and efficient operating condition

c) observe the manufacturers and/orsuppliers instructions for use operationstorage transit and inspection of theComputer Equipment

d) back up information (other thansoftware programs) at least onceevery forty eight hours verify and storetaking all reasonable precautions intheir safe storage and separatelymaintain one verified back up copy ina location away from the Premises

e) maintain one verified and up to dateset of back up software programs in a separate location away from thePremises

f) obtain and keep in force and effect aproper and valid licence in respect ofany software programs in its possession

4. AccessThe Company or their representativesshall have right of access to theMachinery at reasonable times

5. Alteration or ModificationThe Insured shall notify the Company ofany proposed alterations or modificationsto the insured Computer Equipment

6. Suspension of CoverThe Company reserve the right tosuspend the insurance at any time bywritten notice to the Insured until theCompany requirements have beenfulfilled

7. IdentificationThis Section and the Schedule (whichforms an integral part of this Policy) shallbe read together as one contract andwords and expressions to which specificmeanings have been attached in any partof this Policy or of the Schedule shallbear such specific meanings whereverthey may appear

12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

151

1. Temporary CoverThe first premium has been calculated totake into account the cost of temporarycover (in accordance with particularslodged with the Company) pending issueof this Policy

2. Long Term AgreementThe discount shown in the Schedule isallowed off the net premiums on thisSection in consideration of the Insuredhaving given an undertaking expiring onthe date stated in the Schedule to offerannually the insurance under this Sectionon the terms and conditions in force atthe expiry of each Period of Insuranceand to pay the premium annually inadvance it being understood that -

a) the Company shall be under noobligation to accept an offer made inaccordance with the above-mentionedundertaking

b) where appropriate the Sum Insuredmay be reduced at any time tocorrespond with any reduction in value

The above-mentioned undertaking appliesto any Policy (or policies) which may beissued by the Company in substitution forthis Section and the same discount shallbe allowed off the net premiums on anysubstituted Policy or policies issued bythe Company as aforesaid

Payment of the premium due at the expirydate shown in the Schedule shall bedeemed acceptance by the Insured of the terms of this Clause

Special Clauses

Clause 1 applicable only if the Clause number is entered in theSchedule Clause 2 applicable only if referred to in the Schedule

COMPUTER INSURANCE

12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

152

Definitions

DAMAGEThe word DAMAGE in capital letters shallmean accidental loss destruction or damage

Explosion The sudden and violent rending of theMachinery by force of internal steam or otherfluid pressure (other than the pressure ofchemical action or ignition of the contents orof the ignited flue gases) causing bodilydisplacement of any part of the Machinerytogether with forcible ejection of the contentsincluding any resultant loss of coolinglubricating or insulating oil refrigerant or brine

Limit of IndemnityThe liability of the Company in respect of anyone accident or series of accidents arisingout of any one occurrence

MachineryAll component parts of the permanentstructure of any item described in theSchedule commencing in the case of a fixedunit at the point of anchorage and in thecase of a travelling unit at the road or trackwheels excluding

a) supporting structures lift enclosures (other than landing gates) rail tracksanchorage bolts or fixing appliancesbrickwork or foundations

b) computer or data processing equipment(unless controlling any manufacturingprocess) or office equipment such astypewriters adding machines calculatorsand equipment for the printing orreproduction of documents or otherrecords communications or alarm systems or vending machines

c) superheaters economisers piping andancillary electrical or mechanical plantattached to boilers or pressure vesselschimneys appliances used for attachingthe load to any lifting machine glass bulbsor valves or electronic apparatus unlessspecified in the Schedule

d) tools cutting edges moulds dies patternsnon-metallic linings pulverising andcrushing surfaces flexible pipes trailingcables driving belts or bands or partsrequiring periodic renewal

e) parts not made of metal (other than ropesintegral gearing bearings bushes batteriestyres the slabs of switchboards and theinsulation of electrical conductors)

f) equipment serviced processed ormanufactured as a product of theInsureds trade or business

Breakdown a) the actual failure breaking distortion or

burning out of any part of Machinerywhilst in ordinary use arising fromdefects in the Machinery causing itssudden stoppage and necessitatingrepair or replacement before it canresume work

b) fracturing of any part of the Machineryby frost when such fracture renders theMachinery inoperative

c) the actual and complete severance of arope but not breakage or abrasion ofwires or strands even thoughreplacement may be necessary

including any resultant loss of coolinglubricating or insulating oil refrigerant or brine

SUDDEN AND UNFORESEEN DAMAGE SECTION


12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

153

SUDDEN AND UNFORESEEN DAMAGE

Collapse The sudden and dangerous distortion(whether or not attended by rupture of anypart of the Machinery caused by crushingstress by force or steam or other fluidpressure (other than pressure of chemicalaction or ignited flue gases or ignition of contents)

Indemnity

The Company agrees if any Machinerydescribed in the Schedule is DAMAGED byany cause not otherwise excluded at

i) the Premises

ii) whilst temporarily elsewhere in theEuropean Community or European Free Trade Area

the Company will pay the Insured theamount of the destruction or damage or atthe Companys option replace or repair theMachinery or any part of it provided that theliability of the Company under this Sectionshall not exceed the Limit of Indemnityshown in the Schedule

This Section incorporates the Schedulememoranda and endorsements which shallbe read together as one contract Words andexpressions to which specific meaning isgiven in any part of this Section shall havethe same meaning wherever they appear

Clauses

Reinstatement In the event of

A) DAMAGE to boiler and pressure plant meaning

i) boilers

ii) Machinery subject to internal steam pressure

iii) Machinery used for storage of fluidsunder pressure

iv) piping associated with any of the above

B) DAMAGE to Machinery other than thatdescribed in A) above which at the time ofDAMAGE is less than 3 years old

C) DAMAGE by Explosion of Machinery toany other property (excluding stock intrade or goods in process of manufacture)belonging to the Insured or for which theInsured is responsible

for which indemnity is provided by thisinsurance the Company will pay

i) the cost of reinstatement meaning

a) where the Machinery or property islost destroyed or is damaged to theextent that it cannot be economicallyrepaired the cost of replacement bysimilar Machinery or property or if abuilding the cost of rebuilding

b) where the Machinery or property isdamaged the cost of repairing orrestoring the damaged portions

to a condition substantially the same as butnot better or more extensive than itscondition when new

ii) such additional cost of reinstatement asmay be incurred in complying withBuilding Regulations or local authority orstatutory requirements

In the event of DAMAGE other than asdescribed in clauses A) B) and C) abovethe Company will pay the amount of loss meaning

a) where the Machinery or property is lost ordestroyed the value of the Machinery orproperty prior to its loss or destruction

b) where the Machinery or property isdamaged the cost of repairing or restoringthe damaged portions to a conditionsubstantially the same as but not better ormore extensive than its condition prior tothe occurrence of the DAMAGE

12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

154


The following provisions apply

1. Where DAMAGE occurs to only part ofthe Machinery or property the liability ofthe Company shall not exceed theamount which the Company would havebeen liable to pay had the Machinery orproperty been wholly destroyed

2. The Company shall not be liable for

a) the cost of complying with BuildingRegulations or local authority orstatutory requirements

i) relating to undamaged property orundamaged portions of property

ii) under which notice has beenserved prior to the DAMAGE

b) any rate tax duty development or othercharge or assessment arising out ofcapital appreciation as a result ofcomplying with any of the saidregulations or requirements

3. The work of reinstatement must becommenced and carried out withoutunreasonable delay and in any case mustbe completed within twelve months afterthe DAMAGE or within such further timeas the Company may allow during thesaid twelve months and may be carriedout wholly or partially upon another siteand in any manner suitable to therequirements of the Insured provided that it does not increase the liability of the Company

4 The Companys liability for the cost ofreinstatement shall be limited to the value of the Machinery or property prior to the occurrence of DAMAGE until thecost of reinstatement shall have actuallybeen incurred

Payments on Account In the event of DAMAGE the Company willmake monthly payments on account to theInsured if desired

Extensions of Cover

The insurance by this Section extends to include

Expediting Costs and Temporary Repairs Costs necessarily and reasonably incurred in making temporary repairs upon and/orexpediting the repair reinstatement orreplacement of insured items as a result of DAMAGE provided the liability of theCompany shall not exceed

a) in respect of Machinery 50% of thenormal cost of repair or £2,500 whicheveris the less

b) in respect of all other property 50% of thecost of such DAMAGE or £50,000whichever is the less

Automatic Cover Additional Machinery belonging to or leasedby the Insured from the time the installationis completed and the Machinery is ready tocommence normal working at the Situationshown in the Schedule provided that

a) the Machinery belongs to a Categoryshown in the Schedule and is of a typesimilar to that which the Insuredpreviously declared his intention to insure

b) the Machinery is free from defects so faras the Insured is aware and complies withany statutory obligations concerning itsexamination and certification

c) the Insured shall inform the Company inwriting of such Machinery within twelvemonths of installation and shall pay theappropriate additional premium

d) if any such item proves to beunacceptable to the Company theinsurance on the item shall terminate fromthe date of notification to the Insured

Subject otherwise to the terms conditionsand exclusions of this Policy

12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

155


Repair Costs Investigation Additional costs relating to repairinvestigations and tests followingindemnifiable damage to insured items byconsulting engineers not exceeding £25,000in any one Period of Insurance with the priorwritten agreement of the Company TheCompany shall not be liable under thisExtension for fees incurred in preparing aclaim under this Section

Debris Removal Costs Subject to the Sum Insured the Company will pay for costs incurred with the Companysconsent in the removal of Machinery or otherinsured property consequent upon DAMAGEfor which indemnity is provided by thisinsurance but excluding any costs andexpenses arising from pollution orcontamination of property not covered by thisSection provided the liability of the Companyshall not exceed £25,000 or 20% of theindemnifiable DAMAGE whichever is thelower

Loss Avoidance Procedures Subject to the Sum Insured the Company willpay reasonable costs incurred in takingexceptional measures to prevent or mitigateimpending DAMAGE for which indemnity isprovided by this Section provided that

a) DAMAGE would reasonably be expectedif such measures were not implemented

b) the Company are satisfied that DAMAGEhas been avoided or mitigated by meansof the exceptional measures

c) the amount payable will be limited to thecost of DAMAGE which would haveotherwise occurred

d) the terms and conditions of this Policyapply as if DAMAGE had occurred

Special Conditions

Inspection Where contracted to do so HSB HaughtonEngineering Insurance Services Limited willon behalf of the Company periodicallyinspect the Machinery described in theSchedule and will supply reports on thebasis agreed between the Company and the Insured

The Insured shall at their expense have the insured Machinery properly prepared to enable HSB Haughton EngineeringInsurance Services Limited to carry out inspections

In undertaking inspections the HSBHaughton Engineering Insurance ServicesLimited shall be deemed to be acting as theagent of the Insured

HSB Haughton Engineering InsuranceServices Limited shall not carry out orwitness special tests of a non routine nature(including any ultrasonic radiographic testsor in the case of Lifting and Handling Plantany proof load stability anchorage or similartests) unless specifically agreed otherwise

AverageIf any Item has an individual Sum Insured setagainst it and at the time of any loss ordamage to the item its value exceeds thatSum Insured then the Insured shall beconsidered his own insurer for the differenceand shall bear a rateable proportion of theloss or damage accordingly

Multiple Lifting Operations For the insurance provided under thisSection to be operative during any operationin which a load is shared between any itemsof Machinery classed as lifting plant or liftingequipment (whether insured under thisSection or not) the lifting operation must beconducted in accordance with BS7121

12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

156


Claims Notification and RequirementsIn the event of loss or damage for which aclaim is to be made under this Section theInsured shall retain any damaged Machineryor parts for inspection

Minor Repairs The Insured may without prejudice to liability proceed with minor repairs subject to compliance with General Condition 3

Precautions The Insured shall take

a) all reasonable precautions to preventDAMAGE and shall maintain theMachinery in efficient working condition

b) comply with any statute or order

Access The Company or their representatives shallhave right of access to the Machinery atreasonable times

Alteration or ModificationThe Insured shall notify the Company of anyproposed alterations or modifications to theinsured Machinery

Suspension of CoverThe Company reserves the right to suspendthe insurance at any time by written notice tothe Insured until the Company requirementshave been fulfilled

Premium AdjustmentWhere the premium has been calculated onestimates the Insured shall within one monthfrom the expiry of each Period of Insurancefurnish such particulars and information asthe Company may require and the premiumfor such period shall then be adjustedsubject to the Company retaining theminimum retained premium shown in theSchedule Should the Insured fail to supplysuch particulars the Company shall beentitled to charge a reasonable additionalpremium in respect of that Period of Insurance

General Exclusions

The insurance by this Section does not cover

1. Excess The first £100 of each and every loss

2. War RisksAny loss or damage directly or indirectlyoccasioned by or in consequence of warinvasion acts of foreign enemieshostilities (whether war be declared ornot) civil war rebellion revolutioninsurrection military or usurped power orconfiscation or nationalisation orrequisition or destruction of or damage toproperty by or under the order of anygovernment or public or local authority

3. Nuclear Risks Loss destruction or damage to property orloss expense or consequential lossdirectly or indirectly caused by or arising from


ii) the radioactive toxic explosive or other hazardous properties of anyexplosive nuclear assembly or nuclear component

4. Sonic Bangs Any loss directly caused by the pressurewaves of aircraft or other aerial devicestravelling at sonic or supersonic speeds

5. Intentional Acts DAMAGE caused by

a) the intentional act or wilful neglect ofthe Insured:

b) i) intentional overloading

ii) testing or experiments involving the imposition of any abnormalconditions

12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

157


6. Wear and Tear a) the cost of remedying

i) wear and tear or gradualdeterioration whether by wastinggrooving rust corrosion erosion or otherwise

ii) gradually developing defects flawsdeformation distortion cracks orpartial fractures

iii) loose parts or defective joints orseams (other than joints betweenthe sections of sectional heating orhot water supply boilers)

but insured DAMAGE resulting fromthe foregoing is not excluded

b) i) scratching of painted or polished surfaces

ii) damage to rubber tyres nonmetallic protective linings batteriesflexible pipes or hoses and drivingor conveyor belts

iii) pipes or hoses and driving orconveyor belts damage to ropes(other than damage resulting incomplete severance)

unless forming part of other damagefor which indemnity is provided by thisinsurance

7. Guarantees of Performance Penalties for delay or detention or inconnection with guarantees ofperformance or efficiency

8. Erection Risk DAMAGE to machinery duringinstallation erection dismantling resitingtransportation or removal other thanresiting transportation or removal underits own power whilst at its operating site

9. Excluded Parts DAMAGE to safety or protective devicesdue to their functioning

10. Date Recognition DAMAGE directly or indirectly caused byor contributed to by or arising from thefailure of any computer or otherequipment data processing serviceproduct microchip micro processorintegrated circuit embedded chip orsimilar device computer softwareprogram or process or any otherelectronic system or any design oradvice in connection with any of theforegoing irrespective of ownershippossession or use and whether occurringbefore during or after the Year 2000




but this shall not exclude subsequentDAMAGE not otherwise excluded whichitself results from fire lightning explosionaircraft or other aerial devices or articlesdropped therefrom riot civil commotionstrikers locked out workers personstaking part in labour disturbancesmalicious persons theft earthquake stormflood escape of water from any tankapparatus or pipe or impact by any roadvehicle or animal provided suchcontingency is insured by this Section

12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

158


11. TerrorismThis Section does not cover

Loss damage cost or expense ofwhatsoever nature directly or indirectlycaused by resulting from or in connectionwith


2. any action taken in controllingpreventing suppressing or in any wayrelating to any act of Terrorism


In the event any portion of this exclusionis found to be invalid or unenforceablethe remainder shall remain in full force and effect

Definition – TerrorismFor the purpose of this exclusion an act ofTerrorism shall mean an act including butnot limited to the use of force or violenceand or threat thereof of any person orgroup(s) of persons whether acting aloneor on behalf of or in connection with anyorganisation(s) or government(s)committed for political religious ideologicalor similar purposes including the intentionto influence any government and or put thepublic or any section of the public in fear

12. Riot Strike and Civil CommotionDAMAGE resulting from riot strike lock-out or civil commotion

13. Airborne and Waterborne CraftDAMAGE to any airborne or waterbornevessel craft platform or rig nor anyMachinery situated thereon

14. Consequential LossLoss of use of Machinery or otherproperty or any other consequential losswhatsoever incurred by the Insured

15. ContingenciesDAMAGE (except while the Machineryand Plant is temporarily located awayfrom the Situation) caused by

a) fire lightning aircraft and other aerialdevices or articles dropped therefrommalicious persons theft earthquakestorm flood escape of water from anytank apparatus or pipe or impact byany road vehicle or animal or waterdischarged or leaking from aninstallation of automatic sprinklers

b) explosion (other than Explosion asdefined under Definitions)

16. Northern IrelandDAMAGE in Northern Ireland occasionedby or happening through or inconsequence directly or indirectly of

i) civil commotion


In any action suit or other proceedingswhere the Company alleges that byreason of this definition any DAMAGE isnot covered by this Section the burden ofproving that such DAMAGE is coveredshall be upon the Insured

17. Application of ToolsDAMAGE caused by or arising out of theapplication of any tool or process duringthe course of maintenance inspectionmodification or overhaul

Cover Extensions and Limitations

Where any of the following clause referencesappear against insured Machinery in theSchedule the indemnity otherwise grantedherein for such Machinery is amended accordingly

Cover Clause ADL (Accidental Damage Limitation)The Company shall not be liable forDAMAGE to Machinery caused by or arisingfrom Breakdown Collapse or Explosion

Subject otherwise to the terms conditionsand exclusions of the Policy

12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

159


Cover Clause BKL(Breakdown Limitation)The liability of the Company for DAMAGEfrom sudden and unforeseen cause shall belimited to DAMAGE to such Machinery by its Breakdown

Subject otherwise to the terms andconditions and exclusions of the Policy

Cover Clause EXC (Explosion/Collapse Limitation)The liability of the Company for DAMAGEfrom sudden and unforeseen cause shall belimited to DAMAGE to such machinery by itsexplosion (as insured by this Section) or Collapse


Cover Clause FRA (Fragmentation)The Company will subject to the SumInsured indemnify the Insured againstaccidental damage by impact to surroundingproperty to property belonging to or in thecustody and control of the Insured and forwhich they are responsible resulting fromfragmentation of the Machinery

This clause does not cover DAMAGE

a) caused by fire howsoever the firemay have been caused

b) to the item of Machinery itself or toproperty which at the time is actuallybeing handled or processed by the Machinery

c) caused by and occurring duringtesting or intentional overloading ofthe Machinery or by the applicationof any tool or process in the courseof any modification maintenancerepair or overhaul of the Machinery

d) resulting from lack of heat lightpower steam refrigeration or airconditioning

Subject otherwise to the terms andconditions of the Policy

Cover Clause MDL (Material DamageLimitation)The Company shall not be liable forDAMAGE to any Machinery


12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

160


1. Temporary CoverThe first premium has been calculated totake into account the cost of temporarycover (in accordance with particularslodged with the Company) pending issueof this Policy

2. Long Term AgreementThe discount shown in the Schedule isallowed off the net premiums on thisSection in consideration of the Insuredhaving given an undertaking expiring onthe date stated in the Schedule to offerannually the insurance under this Sectionon the terms and conditions in force atthe expiry of each Period of Insuranceand to pay the premium annually inadvance it being understood that

a) the Company shall be under noobligation to accept an offer made in accordance with the above-mentioned undertaking

b) where appropriate the Sum Insuredmay be reduced at any time tocorrespond with any reduction in value

The above-mentioned undertaking applies toany Policy (or policies) which may be issuedby the Company in substitution for thisSection and the same discount shall beallowed off the net premiums on anysubstituted Policy or policies issued by theCompany as aforesaid

Payment of the premium due at the expirydate shown in the Schedule shall be deemedacceptance by the Insured of the terms ofthis Clause

Special Clauses

Clause 1 applicable only if the Clause number is entered in theSchedule Clause 2 applicable only if referred to in the Schedule

12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

161

12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

162

12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

163

12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

AXA Insurance UK plcRegistered in England No 78950. Registered Office: 5 Old Broad Street, London EC2N 1AD

A member of the AXA Group of Companies. AXA Insurance UK plc is authorised and regulated by the Financial Services Authority.In order to maintain a quality service, telephone calls may be monitored or recorded.

www.axa.co.uk

AXA is a world leader in wealth management and financial protection. We operate in

over 50 countries and serve more than 50 million customers worldwide. We cater to a

wide range of needs, providing guidance to our individual and corporate customers on

a variety of financial products and services. In addition to Business, Motor and Home

Insurance we also offer Investments, Life Assurance, Retirement Planning, Long Term

Care, Asset Management, Medical Insurance and Dental Payment Plans.

With our expertise and commitment to customer service and consistent,

quality care, you can rely on AXA for lasting security.

ASK ABOUT AXA’S EXCELLENT RANGE OF BUSINESS,

HOME AND MOTOR INSURANCE PRODUCTS

Z14

87T

/P(0

5/06

) (1

2879

)

12879_Z1487TP_POL.qxd 22/5/06 12:08 pm

12879 Z1487TP POL - AXA Connect

Documents

Transcript of 12879 Z1487TP POL - AXA Connect