Allianz Office Pack PDS (Product Disclosure Statement / Policy Wording)

Allianz Offi ce PackPolicy Document (Product Disclosure Statement).

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Contentspage

Introduction 3

About Allianz 3

Summary of the available covers 3

Understanding Your Policy and its important terms and conditions 4

Applying for cover 4

Cooling off and cancellation rights 4

Basis on which We insure You 5

Information on this Product Disclosure Statement (PDS) 5

Your Duty of Disclosure 5

Privacy information 5

General Insurance Code of Practice 6

Dispute resolution process – helping You solve anyproblems 6

Contact for assistance or confirmation of cover 6

If this insurance has been issued through an insurance intermediary 6

Renewal procedure 7

Terrorism Insurance Act 7

General definitions 7

General exclusions applicable to all Sections of this Policy 9

Claims procedure and conditions 11

General conditions applicable to all Sections of this Policy 12

Section One – Material Damage 15

The cover 15

Definitions applicable to this Section 15

Basis of settlement applicable to this Section 15

Additional benefits applicable to this Section 16

Specific exclusions applicable to this Section 18

Specific conditions applicable to this Section 20

Section Two – Business Interruption 21

The cover 21



page


Optional Benefits applicable to this Section 23


Section Three – Theft 24

The cover 24

Defined Event applicable to this Section 24





Section Four – Money 27

The cover 27

Definition applicable to this Section 27

When cover is provided 27



Section Five – General Property 28

The cover 28



Section Six – Glass 30

The cover 30






Section Seven – Public and Products Liability 31

The cover 31


Limit of Indemnity and Excess applicable to this Section 32

Supplementary payments 32



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Section Eight – Employee Dishonesty (FidelityGuarantee) 37

The cover 37

Definition applicable to this Section 37






Section Nine – Machinery Breakdown 39

The cover 39


Defined Events applicable to this Section 40



Optional Benefit applicable to this Section 41



Section Ten – Computer/Electronic Equipment 43

The cover 43




Additional benefit applicable to this Section 43

Optional Benefits applicable to this Section 44



Section Eleven – Tax Audit 46

The cover 46




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IntroductionThis document contains information designed to help You decide whether to buy Our Office Package Policy.

About AllianzAllianz Australia Insurance Limited AFS Licence No. 234708, ABN 15 000 122 850 is the insurer of the Policy and is one ofAustralia's largest general insurers. We utilise years of local expertise, combined with global experience to offer a rangeof products and services to Our customers. As a member of the worldwide Allianz Group, We are committed tocontinuous improvement of Our products and services and strive to achieve this through knowledge transfer within theGroup, dedicated technical research units, sharing globally new product developments and a wide range of riskmanagement services.

Summary of the available covers

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Cover Type Summary of covers (See relevant Section for details, relevant limits, and specific conditions andexclusions that apply)

Section One – This covers Damage to Property Insured at the Situation caused by any sudden or unexpected orMaterial Damage unforeseen occurrence which is not otherwise excluded, and provides a number of automatic additional

benefits.

Section Two – This covers consequential loss of income and/or profits from the interruption of or interference withBusiness Your insured Business caused by events covered under Sections One, Three or Six and provides a numberInterruption of automatic additional benefits and Optional Benefits.

Section Three – This covers loss of or Damage to Property Insured due to Defined Events relating to theft andTheft provides a number of automatic additional benefits.

Section Four – This covers Property Insured against specified loss of or Damage to Money in transit, MoneyMoney contained in the Premises, Money in Your personal custody and Safes or Strongrooms.

Section Five – This covers Damage to Property Insured caused by any sudden or unexpected or unforeseenGeneral Property occurrence which is not otherwise excluded.

Section Six – This covers You for accidental Breakage of Glass at the Situation and provides two automaticGlass additional benefits.

Section Seven – This covers You for amounts You are legally liable to pay as compensation for Personal Injury and/orPublic and Property Damage occurring within the Territorial Limits as a result of an Occurrence in connectionProducts Liability with Your Business. It also provides a number of automatic supplementary payments.

Section Eight – This covers You against any loss of Property Insured (including Money) due to the fraudulent orEmployee dishonest conduct of an Employee for their own gain or the financial benefit of any other person orDishonesty organisation. It also provides a number of automatic additional benefits.

Section Nine – This covers Damage to Your insured electrical, electronic and mechanical machinery including theirMachinery interconnecting cabling and piping and to boilers and pressure vessels caused by Breakdown. It alsoBreakdown provides a number of automatic additional benefits and an Optional Benefit for deterioration of stock.

Section Ten – This covers Breakdown of the computers and/or electronic equipment specified in the Schedule.Computer/ It also provides an automatic additional benefit and a number of Optional Benefits.ElectronicEquipment

Section Eleven – This covers the Professional Fees reasonably and necessarily incurred in connection with an AuditTax Audit of Your Business’ financial or tax affairs by the Australian Taxation Office, or by a Commonwealth, State or

Territory Department, body or agency.

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Understanding Your Policy and itsimportant terms and conditionsTo properly understand the Policy's significant features,benefits and risks You need to carefully read:

• about each of the available types of cover andbenefits in the relevant Sections One to Eleven (thecover provided under each Section can be affectedby the following);

• the rest of this “Introduction” section – this sets outhow You apply for cover, the basis on which Weinsure You, the duty of disclosure You need to meetbefore We insure You, Our privacy information andOur dispute resolution procedures;

• the “General definitions” section – this sets out whatWe mean by certain words used in the Policy. Thesewords begin with a capital letter throughout thisdocument. Each coverage Section may also containdefinitions relevant to that Section;

• the “General exclusions applicable to all Sections ofthis Policy” Section – this sets out the generalexclusions and limits that apply to all covers andbenefits;

• the “Claims procedure and conditions” and “Generalconditions applicable to all Sections of this Policy”Sections – these set out certain general rights andobligations that You and We have. If You do notmeet them We may be able to refuse to pay orreduce what We pay for a claim to the extentpermitted by law;

• the Schedule and any endorsements or other writtenchanges to the cover We issue You with – thesecontain specific details relevant to You and canaffect the cover.

Headings are included for reference purposes only anddo not form part of Your Policy for interpretation.

Applying for coverWhen You apply for the Policy, We or Our representativewill confirm with You:

• the covers You require (including the property Youwish to cover, the limits You require for certaincovers (if optional), whether any third parties will benoted as having an interest, and the Excesses thatYou must contribute for certain claims) – We onlycover You for those Policy Sections and OptionalBenefits shown as covered on Your Schedule up tothe relevant specified limits.

The maximum amount We will pay will not exceedthe Sum Insured or the Limit of Indemnity for therelevant Policy Sections shown as insured on YourSchedule.

The Policy sets out the cover We provide. You need todecide if the limits, type and level of cover areappropriate for You and will cover Your potentialloss. If they are not, You may be underinsured andhave to bear part of any loss Yourself.

You should also read the GST Notice in the “Claimsprocedure and conditions” section to understandhow GST is applied to a claim;

• whether any standard terms need to be varied (thismay be by way of an endorsement);

• the Period of Insurance;

• Your premium – the base premium We charge iscalculated based on a number of factors such as:

– Your risk profile and the ratings We apply toYour profile (e.g. where the Property Insured issituated, the type of property being insured, thecover and limits required, other persons beinginsured and Your insurance history etc). Insome cases, discounts may apply if You meetcertain criteria We set;

– certain costs incurred by Us in relation to theTerrorism Insurance Act;

– Our obligation to pay relevant government taxesand charges. For example, We include anamount that covers stamp duty and GSTpayable in relation to the Policy. We also includean amount estimated to cover Our obligation topay any applicable government Fire Service Levyin relation to the Policy. These amounts arespecified separately in the Schedule We issue.

In some cases a service fee will apply where Youselect to pay Your premium by instalments. We tellYou the total amount payable when You apply andwhen and how it can be paid. This is confirmed inthe Schedule We issue to You.

If You pay Your premium by instalments, refer to the“General conditions applicable to all Sections of thisPolicy” section for important details on Your and Ourrights and obligations. Note that an instalmentpremium outstanding for at least 14 days may resultin Our refusal to pay a claim.

The above details are recorded in the Schedule We issueto You after cover is entered into.

Cooling off and cancellation rightsYou have cooling off and cancellation rights (see the“General conditions applicable to all Sections of thisPolicy” Section on page 12 for details).

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Basis on which We insure YouWe agree to insure You:

• based on the information provided in Your Proposaland subject to payment of the required premium bythe required date.

• in accordance with the Policy terms and conditions –Your Policy is made up of Your Proposal, this PolicyDocument, the Schedule and any writtenendorsements We issue to You. You should carefullyread all of these as if they are one document andkeep them in a safe place.

If You require further information about the Policy orwish to confirm a transaction, please refer to the contactdetails provided on Your Schedule.

Information on this Product DisclosureStatement (PDS)This Policy provides a number of covers which may ormay not be provided to You as a retail client under theCorporations Act 2001 (Cth) (the Act) depending on Yourcircumstances. Only the parts of this Policy Documentrelevant to cover provided to You as a retail client andany other documents We tell You are included, make upthe PDS for the purposes of the Act. It is important thatYou read this document and all other Policydocumentation We provide to ensure You are happy withthe cover You choose. Should You have any concerns,please refer to the contact details on Your Schedule.

Information in the PDS may need to be updated fromtime to time where permitted by law. You can obtain apaper copy of any updated information without chargeby calling Us – please refer to the contact details on YourSchedule. If the update is to correct a misleading ordeceptive statement or an omission, that is materiallyadverse from the point of view of a reasonable persondeciding whether to acquire the cover, We will provideYou with a new PDS or a supplementary PDS.

Preparation date 22/11/2006.

Your Duty of DisclosureBefore You enter into an insurance contract with Us, theInsurance Contracts Act 1984 requires You to provide Uswith the information We need to enable Us to decidewhether and on what terms Your Proposal is acceptableand to calculate how much premium is required for Yourinsurance.

The Act imposes a different duty the first time You enterinto the Policy with Us to that which applies when Yourenew, vary, extend, reinstate or replace Your Policy. Weset these two duties out below.

Your Duty of Disclosure when You enter into thisPolicy with Us for the first time

You will be asked various questions when You first applyfor this Policy. When You answer these questions, Youmust:

• give Us honest and complete answers;

• tell Us everything that You know; and

• tell Us everything that a reasonable person in thecircumstances could be expected to tell Us.

Your Duty of Disclosure when You renew, vary,extend, reinstate or replace Your Policy

When You renew, vary, extend, reinstate or replace thePolicy, Your duty is to tell Us before the renewal,variation, extension, reinstatement or replacement ismade, every matter known to You which:

• You know, or

• a reasonable person in the circumstances could beexpected to know,

is relevant to Our decision whether to insure You andwhether any special conditions need to apply to YourPolicy.

What You do not need to tell Us for either duty

You do not need to tell Us about any matter:

• that diminishes Our risk;

• that is of common knowledge;

• that We know or should know as an insurer; or

• that We tell You We do not need to know.

Who do the two duties above apply to?

Everyone who is insured under the Policy must complywith the relevant duty.

What happens if You or they do not comply witheither duty?

If You or they do not comply with the relevant duty, Wemay cancel the Policy or reduce the amount We pay ifYou make a claim. If fraud is involved, We may treat thePolicy as if it never existed and pay nothing.

Privacy informationWe are required to comply with state and federal privacylegislation, which covers the collection, handling, storageand disclosure of Your personal information (includingsensitive information).

In the course of providing products and services, Allianzmay, in certain circumstances, disclose Your personalinformation (including sensitive information) to thirdparties (such as other insurers, reinsurers, loss adjusters,

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external claims data collectors, Your employer,insurance reference bureaus, investigators, and agentsor other parties as required by law) in order to:

• decide whether to issue a policy;

• determine the terms and conditions of a policy;

• compile data;

• assess and verify Your current and subsequentinsurance applications and details;

• create, underwrite, price and issue a policy;

• administer and maintain a policy; and

• investigate, verify, assess, manage and pay a claim.

If You do not provide the relevant personal informationWe may not be able to do business with You.

Where You provide Allianz with personal informationabout other individuals, You must be authorised toprovide that information and agree to inform them ofthe information contained within this privacy statement.

Allianz aims to ensure that Your personal informationis accurate, up to date and complete. Please contact Uson 13 1000 if You would like to seek access to thisinformation or in order to revise any information Wehave on record that is incorrect or incomplete. If Youhave any issues regarding the way Allianz has handledYour personal information You may contact Us. Allcomplaints are managed through Our internal PrivacyComplaint Procedure. Should You wish to obtain furtherinformation about Allianz’s privacy policies, pleasecontact Us on 13 2664 and ask for a copy of Our “GeneralInsurance Information Privacy Code” booklet.

From time to time We may advise You of other Allianzproducts or services that may be relevant or of interest toYou. If You do not wish to receive this advice, please callUs on 13 2664 EST 8am-6pm, Monday-Friday or indicateYour decision in the appropriate area of the privacysection of Our website at www.allianz.com.au.

General Insurance Code of PracticeThe General Insurance Code of Practice was developedby the Insurance Council of Australia to further raisestandards of practice and service across the insuranceindustry. We keenly support the standards set out in theCode. You can obtain more information on the Code ofPractice and how it assists You by contacting Us on13 2664 EST 8am-6pm, Monday-Friday.

Dispute resolution process – helpingYou solve any problemsComplaints or disputes are not an everyday occurrenceat Allianz. We strive to do things the right way and keepOur customers happy. Sometimes though, complaints or

disputes do occur and when this happens, Our objectiveis to resolve any disagreement as amicably and asquickly as possible. We believe the best way to achievethis is to provide You with an opportunity for anunbiased review of the issue.

Here is what to do if a complaint or dispute arises

Regardless of whether the complaint or dispute involvesOur staff, an agent, loss adjuster, assessor or investigatoror the service We provide, simply contact Us on 13 1000,speak to one of Our call centre operators and providethem with the details of the issue concerning You. Theywill attempt to resolve the complaint or dispute; if theyare unable to do so they will log it and refer it to theappropriate business unit for resolution. Within Ourorganisation We have established a complaints anddisputes resolution process. This is a free service. It is asystem designed to log, track, escalate and monitorcomplaints received from clients and customers aboutOur service and products. A staff member involved in thecomplaints and disputes resolution process will write toYou within 15 working days advising You of the outcomeof the review and reasons for their decision. We do notconsider a complaint or dispute to be resolved until aproposed resolution or solution has been communicatedto You and You have accepted the resolution or solution.

If You are not satisfied with the outcome ofthis process

If We are unable to resolve the complaint or dispute, Wewill offer You the option of referring the matter to theinsurance industry’s external independent complaintsscheme subject to eligibility. The scheme will only reviewcomplaints or disputes if they have gone through Ourinternal complaints and disputes resolution process.

Contact for assistance or confirmationof coverIf You need to confirm any Policy transaction or clarifyany of the information contained in this PolicyDocument or if You have any other queries, please referto the contact details provided on Your Schedule.

If this insurance has been issuedthrough an insurance intermediaryIf Your Policy has been issued through Our agent, or abroker who is acting under an agency agreement such asa binder with Us, then they are acting as Our agent andnot as Your agent.

If Your Policy has been issued by a broker, other than abroker acting under such an agency arrangement withUs, then the broker is acting as Your agent.

Note: You may purchase insurance through the insurerof Your choice.

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Where this Policy has been arranged through anintermediary, a commission is payable by Us to themfor arranging the insurance.

Renewal procedureBefore Your Policy expires, We will advise You whetherWe intend to offer renewal of Your Policy. Renewal will beoffered by sending a notice advising the amount payableto renew the Policy. It is important that You check theSums Insured before renewing each year to satisfyYourself that they continue to represent current valuesor if You are insuring for Reinstatement or Replacementvalue, the full replacement value of Your property,to ensure that You are properly covered in the eventof a major loss.

Terrorism Insurance ActWe have determined that this Policy (or part of it) isa Policy to which the Terrorism Insurance Act 2003applies. We have reinsured Our liability under the Actwith the Commonwealth Government reinsurer, theAustralian Reinsurance Pool Corporation (ARPC). As aconsequence, We are required to pay a premium to ARPCand that amount (together with the cost of that part ofthe cover provided by Us and administrative costsassociated with the legislation) is reflected in thepremium charged to You. As with any other part of Ourpremium, it is subject to government taxes and chargessuch as GST, Stamp Duty and where applicable, FireService Levy.

For further information contact Allianz.

General definitionsThese definitions apply to and should be read in relationto each of the Policy Sections unless they are defineddifferently in the relevant Section.

“Building(s)” means the Building(s) at the Situation,including outbuildings, underground services, walls,gates and fences, signs, landlord’s fixtures and fittings, ofevery kind and description and additions forming part ofthe Building complex.

“Business” means the Business described in theSchedule, carried on by You or on Your behalf at or fromthe Situation and any occupation incidental to thatBusiness.

“Contents” means office Contents of every descriptionnot otherwise excluded but does not mean Stock inTrade or Customers’ Goods.

“Customers’ Goods” means goods and/or merchandiseheld by You in trust or on commission for which You areliable.

“Damage(d)” means any physical destruction of orDamage to the Property Insured so as to lessen its valueor any physical loss.

“Debris” means the residue of Damaged Property Insuredbut does not mean material that is itself a pollutant orcontaminant and is deposited beyond the boundaries ofthe Situation.

“Defined Event” means an event shown in the individualSection (which the Schedule says is operative) under theheading “Defined Events applicable to this Section”, andfor which cover is available under that Section only.

“Excess” means either the amount of Money specified inthe Schedule or otherwise stated in the Policy that Youmust contribute as the first payment for all claimsarising out of any one event, or the period specified inthe Schedule or otherwise stated in the Policy for whichno payment will be made by Us.

“Excluded Event” means any event specifically excludedfrom the covers granted under an individual PolicySection or any event excluded in the “General exclusionsapplicable to all Sections of this Policy”.

“Flood” means the inundation of normally dry land bywater overflowing from the normal confines of anynatural watercourse or lake whether or not altered ormodified or of any reservoir, canal or dam.

“Money” means current coin, bank notes, currency notes,cheques, credit card sales/service vouchers, pre-paidtravel passes, postal orders, money orders, negotiableand non-negotiable securities and valuable documents,the unused value of postage stamps, revenue stamps,

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cab charges, credit cards, stored-value cards, travellerscheques and the contents of franking machines.

“Optional Benefit” means the Optional Benefit describedas being available in certain Sections of this Policy.Optional Benefits that are covered are shown in theSchedule.

“Period of Insurance” means the period commencing onthe effective date and ending at 4pm on the expiry dateas shown in the Schedule.

“Policy” means this document and any endorsement,specification, attachment or memoranda affixed (orintended to be affixed) to it, the Schedule and YourProposal.

“Policy Section” or “Section” means any part of this Policynumbered and described as a Policy Section or Section.

“Premises” means within the confines of the Building(s)at the Situation.

“Property Insured” means all tangible property, both realand personal shown as insured in the Schedule inrespect of each Section and not otherwise excludedwhich belongs to You, or for which You are legallyresponsible, or have assumed responsibility to insureprior to the occurrence of any Damage.

“Proposal” means the application for insurancecompleted by You or Your behalf by which You providedthe information upon which We relied to enter thisPolicy.

“Safe” means a burglar resistant container that has beendesigned to resist fire and attack by hand-held or poweroperated tools and has been specifically designed for thestorage of Money and valuables.

“Schedule” means the most recently dated Schedule Wehave provided to You which specifies importantinformation such as the Policy number, Situation, thoseSections and Optional Benefits that are in force, thedetails of the Property Insured and the Sums Insured.

“Situation” means the Situation(s) stated in the Schedule.

“Stock in Trade” means stock of doctors, dentists,veterinarians, physiotherapists, radiographers andadvertising agencies or stock held for Your own use or assamples, but excluding tobacco, cigars, cigarettes andliquor.

“Strongroom” means a burglar resistant room that hasbeen designed to resist fire and attack by hand-held orpower operated tools and has been specifically designedfor the storage of Money and valuables.

“Sum Insured” means the relevant amount shown in theSchedule as the Sum Insured.

“The Insured” means only the person(s) and/orentity(ies) shown in the Schedule as The Insured unlessotherwise stated in the relevant Policy Section as being aperson entitled to cover.

“We”, “Us”, “Our”, “Allianz” means Allianz AustraliaInsurance Limited AFS Licence No. 234708,ABN 15 000 122 850 of 2 Market Street, Sydney, NSW,2000.

“You”, “Your”, “Yours” means either the person or theentity named as The Insured in the Schedule.

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General exclusionsapplicable to allSections of this Policy1. The Policy does not cover loss, destruction, liability,or Damage:

a. War

caused by, contributed to by or arising from any war,whether war be declared or not, hostilities orrebellion, civil war, revolution, insurrection, militaryor usurped power, invasion, act of foreign enemy;

b. Nuclear

caused by, contributed to by or arising from ionisingradiation or contamination by radioactivity from:

(i) any nuclear fuel or from any nuclear waste; or

(ii) the combustion of nuclear fuel (including anyself-sustaining process of nuclear fission); or

(iii) nuclear weapons material;

c. Lawful seizure

caused by, contributed to by or arising from thelawful seizure, detention, confiscation,nationalisation or requisition of the PropertyInsured;

d. Wilful acts

caused by, contributed to by or arising from anyactual or alleged:

(i) dishonest, fraudulent, criminal or malicious act;

(ii) wilful breach of any statute, contract or duty; or

(iii) conduct intended to cause loss or Damage orwith reckless disregard for the consequences;

carried out by You or any person acting with Yourknowledge, consent or connivance;

e. Territorial limits

occurring outside the Commonwealth of Australiaexcept as specifically stated otherwise in theappropriate Section.

2. Except as specifically provided otherwise, this Policydoes not cover:

a. consequential loss of any kind;

b. legal liability to pay compensation or damages;

c. Damage caused by faults or defects known to You orany employee or representative whose knowledge inlaw would be deemed to be Yours and not disclosedto Us at the time this Policy was entered into.

3. This Policy does not cover any loss or Damage to anyappliance, machinery, equipment or other propertywhich is a computer or which contains or comprises anycomputer technology (including computer chip orcontrol logic) and which fails to perform or function inthe precise manner for which it was designed for anyreason arising from the performance or functionality ofsuch computer technology (including computer chip orcontrol logic).

4. Terrorism

Notwithstanding any provision to the contrary withinthis Policy or any endorsement thereto, this Policyexcludes and does not cover death, injury, illness, loss,Damage, cost or expense directly or indirectly caused by,contributed to by, resulting from or arising out of or inconnection with any Act of Terrorism, as defined herein,regardless of any other cause or event contributingconcurrently or in any other sequence to the loss.

An Act of Terrorism includes any act, or preparationin respect of action, or threat of action designed toinfluence the government de jure or de facto of anynation or any political division thereof, or in pursuit ofpolitical, religious, ideological or similar purpose tointimidate the public or a section of the public of anynation by any person or group(s) of persons whetheracting alone or on behalf of or in connection with anyorganisation(s) or government(s) de jure or de facto,and which:

(i) involves violence against one or more persons; or

(ii) involves Damage to property; or

(iii) endangers life other than that of the personcommitting the action; or

(iv) creates a risk to health or safety of the public or asection of the public; or

(v) is designed to interfere with or to disrupt anelectronic system.

This Policy also excludes and does not cover death,injury, illness, loss, Damage, cost or expense directly orindirectly caused by, contributed to by, resulting from,or arising out of or in connection with any action incontrolling, preventing, suppressing, retaliating againstor responding to any Act of Terrorism.

5. Electronic Data

a. Electronic Data – Part 1

This Electronic Data exclusion is applicable to thefollowing Sections of this Policy:

• Section One – Material Damage

• Section Two – Business Interruption

• Section Three – Theft

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• Section Four – Money

• Section Five – General Property

• Section Six – Glass

• Section Eleven – Tax Audit

(i) These Policy Sections do not insure:

(a) total or partial destruction, distortion,erasure, corruption, alteration,misinterpretation or misappropriationof Electronic Data;

(b) error in creating, amending, entering,deleting or using Electronic Data; or

(c) total or partial inability or failure to receive,send, access or use Electronic Data for anytime or at all,

from any cause whatsoever, regardless of anyother contributing cause or event wheneverit may occur.

Electronic Data means facts, concepts andinformation converted to a form useable forcommunications, display, distribution,interpretation, or processing by electronic orelectromechanical data processing orelectronically controlled equipment andincludes programs, software and other codedinstructions for such equipment.

(ii) However, in the event that a peril listed below(being a peril insured by the relevant PolicySections but for this exclusion) is caused by anyof the matters described in paragraph (i) above,then the relevant Policy Sections, subject to alltheir provisions, will insure:

• physical loss of or Damage or destructionto Property Insured directly caused by suchlisted peril, and/or

• consequential loss insured by this Policy.

Further, this exclusion does not apply in theevent that a peril listed below (being a perilinsured by the relevant Policy Sections but forthis exclusion) causes any of the mattersdescribed in paragraph (i) above.

fire, lightning, thunderbolt, explosion,implosion, earthquake, subterranean fire,volcanic eruption, impact by aircraft or aerialobject dropped therefrom, impact by roadvehicle or animal, sonic boom, theft of ElectronicData, solely where such theft is a consequence oftheft of any computer and/or computerhardware and/or firmware and/or microchipand/or integrated circuit and/or similar devicecontaining such Electronic Data, breakage of

glass, the acts of persons taking part in riots orcivil commotions or of strikers or of locked-outworkers or of persons taking part in labourdisturbances, storm and/or tempest and/orrainwater and/or wind and/or hail, water andother liquids and/or substances dischargedand/or overflowing and/or leaking from anyapparatus and/or pipes at the Premises.

(iii) For the purposes of the Basis of Settlementprovision in these Policy Sections, computersystems records includes Electronic Data asdefined in paragraph (i) above.

Any terrorism exclusion in these Policy Sections or anyendorsement thereto prevails over this exclusion.

b. Electronic Data – Part 2

This Electronic Data exclusion is applicable to thefollowing Sections of this Policy:

• Section Nine – Machinery Breakdown

• Section Ten – Computer/Electronic Equipment.

These Policy Sections do not cover any loss orDamage of whatsoever kind arising directly orindirectly out of:

(i) total or partial destruction, distortion, erasure,corruption, alteration, misinterpretation ormisappropriation of Electronic Data;

(ii) error in creating, amending, entering, deletingor using Electronic Data;

(iii) total or partial inability or failure to receive,send, access or use Electronic Data for any timeor at all; or

(iv) any business interruption losses resultingtherefrom,

regardless of any other contributing cause or eventwhenever it may occur, unless such loss or Damageis a direct consequence of otherwise insuredphysical Damage and provided that restorationof data and/or business interruption is insuredby these Policy Sections.

Electronic Data means facts, concepts andinformation converted to a form useable forcommunications, display, distribution, interpretationor processing by electronic and electromechanicaldata processing or electronically controlledequipment and includes programs, software andother coded instructions for such equipment.

Any terrorism exclusion in these Policy Sections orany endorsement thereto prevails over thisexclusion.

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Claims procedure andconditions1. Claims procedurea. As soon as You become aware of anything

happening which may result in a claim under thisPolicy You must, at Your own expense (unless theexpense is covered under Claims preparationexpenses below):

(i) immediately inform the police of any maliciousDamage, theft, attempted theft or loss ofproperty,

(ii) advise Us as soon as possible, telling Us how theloss, Damage or liability occurred,

(iii) take all reasonable action to recover lost orstolen property and minimise the claim,

(iv) as far as possible preserve any products,appliances, plant or other items which mightprove necessary or useful as evidence until Wehave had an opportunity for inspection,

(v) give Us all the information, proof and assistanceWe may require to prosecute, defend or settleYour claim including details of any otherinsurance effected by You or on Your behalf,

(vi) as soon as is reasonably practicable after theloss or Damage (or any further time which Wemay allow in writing) deliver to Us a writtenclaim containing as detailed an account as isreasonably practicable of the circumstancessurrounding the loss or Damage, and theamount claimed. If We ask You to provide Uswith a Statutory Declaration You must provideit,

(vii)immediately send Us any claim, writ, summons,or full details of other relevant legal or otherproceedings such as an impending prosecutionor inquest You receive or become aware of,

(viii)at all times give Us all the information andassistance We may reasonably require.

b. You MUST NOT:

(i) admit liability for, or offer, or agree to settle anyclaim without Our prior written consent,

(ii) authorise the repair or replacement of anythingwithout Our prior written consent unless forsafety reasons or to minimise or prevent furtherimminent loss, Damage or liability.

c. After You have advised Us of any loss or Damage asset out in this condition:

(i) You must comply with all the terms of the Policyincluding the general conditions before We willmeet any claim under this Policy,

(ii) We have the right to recover from any personagainst whom You may be able to claim anymoney paid by Us. We will have full discretion inthe conduct, settlement or defence of any claimin Your name. The amount recovered will beapplied first to reducing the amount by whichYour loss exceeds the payment made by Us plusany Excess applied. Any balance remaining afterYou have been fully compensated for Your loss,up to the amount We have paid to You to settleYour claim (including Our legal fees forrecovery), will be retained by Us,

(iii) We may take over and conduct, in Your name,the defence or settlement of any claim and Wewill have full discretion in the conduct of anyproceedings in connection with the claim,

(iv) We may pay You the Sum Insured or Limit ofIndemnity under the applicable Section or anylesser amount for which a claim or claims underthat Section may reasonably be settled. After Wehave paid You, We will no longer be liable for theclaim(s) (or future conduct of the claim(s))except for costs and expenses incurred up untilthe time We agreed to pay,

d. If You recover or find any lost or stolen PropertyInsured for which We have paid a claim, You must:

(i) tell Us immediately; and

(ii) give Us the recovered or found Property Insuredif We request You to do so.

e. If You advise Us of loss or Damage to PropertyInsured, as set out in this condition:

(i) We may, or anybody We appoint may:

(a) enter, take or keep possession of theBuildings where destruction or Damagehas happened;

(b) take or keep possession of the PropertyInsured for the purposes of Ourinvestigations; and

(c) if We accept liability for the loss, sell suchProperty Insured or dispose of it in areasonable manner;

but, You are not entitled to abandon suchBuildings or Property Insured to Us. If Weenter, take or keep possession of theBuildings or the Property Insured it will notbe an admission of liability nor will it affectany of Your obligations under this Policy;

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(ii) if We elect or become bound to reinstate orreplace any Property Insured, You must at Yourown expense produce and give Us all suchplans, documents, books and information as Wemay reasonably require;

(iii) We will not be bound to reinstate exactly orcompletely, but only in a reasonable mannergiven the circumstances. In no case will We bebound to pay, in respect of any of the PropertyInsured, more than the Sum Insured or Limit ofIndemnity specified in the Schedule.

2. Claims preparation expensesWe will pay for costs necessarily and reasonably incurredfor the preparation of a valid claim under this Policy. Themost We will pay is $10,000 or 25% of the claim amountotherwise payable, whichever is the lesser.

3. Multiple ExcessesIf a claim arises from a single event and You can obtaincover under more than one Section, You will only berequired to pay the highest single Excess applicableregardless of the number of Excesses applying to theindividual Sections.

Provided that this shall not apply to claims arising fromloss or Damage claimable under the Optional Benefit ofSection Nine – Machinery Breakdown.

General conditionsapplicable to allSections of this Policy1. Actions of parties other than TheInsuredThe acts or omissions of:

a. a tenant of Yours; or

b. the owner of, or another tenant in, the Building;

which breach any provision of this Policy will not affectYour entitlement to cover provided that:

(i) the act or omission was committed without Yourprior knowledge or complicity, and

(ii) You notify Us of the happening or existence of theact or omission as soon as You become aware of it,and

(iii) You pay any reasonable extra premium which Werequire.

2. Cooling off and cancellation rightsunder the Policya. You may cancel and return this Policy at any time by

notifying Us in writing;

b. We have the right to cancel this Policy wherepermitted by law. For example, We can cancel:

• if You failed to comply with Your duty ofdisclosure, or

• where You have made a misrepresentation to Usduring negotiations prior to the issue of thisPolicy, or

• where You have failed to comply with aprovision of Your Policy, including the termrelating to payment of premium, or

• where You have made a fraudulent claim underYour Policy or under some other contract ofinsurance that provides cover during the sameperiod of time that Our Policy covers You, or

• where We agree to accept payment of premiumby periodic instalment and at least oneinstalment remains unpaid in excess of onemonth from the date on which it was due andpayable.

c. If You or We cancel the Policy We may deduct a prorata proportion of the premium for time on risk,reasonable administrative costs related to the

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acquisition and termination of the Policy and anygovernment taxes or duties We cannot recover.

d. In the event that You have made a claim under thisPolicy and We have agreed to pay the full SumInsured for Your Property Insured, no return ofpremium will be made for any unused portion of thepremium for the Sections under which the full SumInsured has been paid.

3. Governing law and jurisdictionThis Policy is governed by the laws of Australia. Anydispute relating to this Policy shall be submitted to theexclusive jurisdiction of an Australian Court within theState or Territory in which the Policy was issued.

4. GST NoticeThis Policy has a GST provision in relation to premiumand Our payment to You for claims. It may have an impacton how You determine the amount of insurance You need.Please read it carefully. Seek professional advice if Youhave any queries about GST and Your insurance.

Sums Insured

All monetary limits in this Policy may be increased forGST in some circumstances (see below).

Claim settlements – Where We agree to pay

When We calculate the amount We will pay You, We willhave regard to the items below:

• Where You are liable to pay an amount for GST inrespect of an acquisition relevant to Your claim(such as services to repair a Damaged item insuredunder the Policy) We will pay the GST amount.

We will pay the GST amount in addition to the SumInsured or Limit of Indemnity or other limits shownin the Policy or in the Schedule.

If Your Sum Insured or Limit of Liability is notsufficient to cover Your loss, We will only pay theGST amount that relates to Our settlement of Yourclaim. We will reduce the GST amount We pay by theamount of any input tax credits to which You are orwould be entitled.

• Where We make a payment under this Policy ascompensation instead of payment for a relevantacquisition, We will reduce the amount of thepayment by the amount of any input tax credit thatYou would have been entitled to had the paymentbeen applied to a relevant acquisition.

• Where the Policy insures business interruption,We will (where relevant) pay You on Your claim byreference to the GST exclusive amount of any supplymade by Your Business that is relevant to Yourclaim.

Disclosure – Input tax credit entitlement

If You register, or are registered, for GST You are requiredto tell Us Your entitlement to an input tax credit on Yourpremium. If You fail to disclose or You understate Yourentitlement, You may be liable for GST on a claim Wemay pay. This Policy does not cover You for this GSTliability, or for any fine, penalty or charge for which Youmay be liable.

5. Interests of other partiesa. The insurable interest of only those lessors,

financiers, trustees, mortgagees, owners and allother parties having a legal interest or charge overthe Property Insured and who are specifically notedin Your records, shall be automatically included asthird party beneficiaries without notification orspecification. The nature and extent of such interestis to be disclosed to Us in the event of Damage. Anyother people not in this category or not named onthe Schedule are not covered and cannot make aclaim. All third party beneficiaries must comply withthe terms and conditions of the Policy.

b. Where the protection provided by this Policy coversthe interests of more than one party, any act oromission of an individual party will not prejudicethe rights of the remaining parties:

(i) subject to General exclusion d. Wilful acts, and

(ii) provided the remaining parties must,immediately on becoming aware of any act oromission that increases the risk of loss, Damageor liability, give notice in writing to Us and ondemand pay any reasonable additionalpremium We may require.

6. One event for earthquakeOnly for the purpose of the application of any Excess, allDamage resulting from earthquake occurring duringeach period of 72 consecutive hours will be consideredas one event, whether the earthquake is continuous orsporadic in its sweep and/or scope and the Damage wasdue to the same seismological conditions. Each eventwill be considered to have commenced on the firsthappening of Damage, not within the period of anyprevious event.

7. Reinstatement of Sum InsuredIn the event of Damage insured under Section One –Material Damage, Section Two – Business Interruption,Section Three – Theft, Section Four – Money and SectionSix – Glass of this Policy, the amount by which the SumInsured or Limit of Indemnity is reduced as aconsequence of the loss or Damage will be automaticallyreinstated from the date of loss or Damage provided that:

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a. there is no written request from You or writtennotice by Us to the contrary;

b. the Section is an operative Section of the Policy; and

c. You pay the premium which We require for thereinstatement.

8. Your representative – authorisationBy entering into this Policy, You agree that the personrepresenting You when completing the Proposal isauthorised to give and receive information on Your behalfin relation to all matters arising under this Policy and inaccordance with the Insurance Contracts Act 1984.

If You do not meet the following conditions, We maycancel the Policy and/or reduce or refuse to pay a claim:

9. Alteration to riskIf You become aware of any changes to the facts orcircumstances which existed when this insurancecommenced that change the nature of the risk (forexample, the nature of Your Business, or othercircumstances that affect the Situation or PropertyInsured in a way that would increase the risk of loss orDamage) You must notify Us in writing. If We agree tothe change We will do so in writing and You must pay Usany additional premium We require.

10.Non payment of premium byinstalments – Right to refuse a claimWhere You pay Your premium by instalments, You mustensure that they are paid on time because if aninstalment has remained unpaid for a period of at least14 days, We may refuse to pay a claim. We will notify Youif an instalment has not been paid.

11.Other insuranceYou must give Us written notice of any insurance alreadyeffected, or which may be subsequently effectedcovering, whether in whole or in part, the subject matterof the various Sections of this Policy.

12.Reasonable care and maintenanceYou must take all reasonable care:

a. to prevent loss, Damage or legal liability;

b. to maintain the Property Insured and Premises insound condition, in particular to minimise or avoidtheft, loss, Damage or liability;

c. to comply with all statutory obligations, by-laws,regulations, public authority requirements andsafety requirements;

d. to minimise any loss or Damage;

e. to only employ competent employees and ensure theyadhere to the requirements specified in a. – d. above.

13.Storage of hazardous goodsHazardous goods stored at the Situation by any personas part of that person’s business must be stored inquantities and in a manner permitted by relevant laws orregulations.

14.UnoccupancyIf Your Buildings have not been occupied for any periodin excess of 60 consecutive days, We will not pay forDamage to Property Insured under:

• Section One – Material Damage,

• Section Three – Theft,

• Section Four – Money,

• Section Six – Glass,

• Section Eight – Employee Dishonesty,

• Section Ten – Computer/Electronic Equipment,

unless You have Our prior agreement in writing and havepaid any additional premium We may require.

15.Waiver of subrogation rightsWe may not be liable to pay any benefits under thisPolicy for loss, Damage or liability if You agree or haveagreed to limit or exclude any right of recovery againstany third party who would be liable to compensate Youwith respect to that loss, Damage or liability however:

a. We shall waive any rights and remedies or reliefto which We are or may become entitled undersubrogation against:

(i) any co-insured (including directors, officersand employees);

(ii) any corporation or entity (including itsdirectors, officers and employees) ownedor controlled by any Insured or againstany co-owner of the Property Insured.

b. You may without prejudicing Your position underthis Policy:

(i) release any statutory government, semi-government or municipal authority from anyliability if required by contract to do so;

(ii) agree to enter into a contract for storage ofgoods or merchandise if the terms of thecontract include a disclaimer clause;

(iii) agree to enter into a lease for occupancy of anybuilding or part of a building or a lease or hiringof property where the terms of the lease orhiring include a disclaimer clause in favour ofthe lessor or the owner.

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Section One – MaterialDamageThe coverWhere this Section is shown as insured on the Schedule,We will settle Your claim in accordance with the basis ofsettlement if any of the Property Insured:

1. is Damaged at the Situation;

2. by any sudden or unexpected or unforeseenoccurrence which is not otherwise excluded; and

3. which occurs during the Period of Insurance.

Definitions applicable to this Section“Pollution or Contamination” means Damage or lossarising out of the discharge, dispersal, release or escapeof smoke, vapours, soot, fumes, acids, alkalis, toxicchemicals, liquids or gases, waste materials or otherirritants, contaminants or pollutants into or upon anyproperty, land, atmosphere or any watercourse or bodyof water (including groundwater);

“Sea” means all oceans, seas, bays, ports or tidal waters;

“Storm Surge” means the short period rise or fall of thesea level produced by a cyclone;

“Water” includes snow, sleet or hail.

Basis of settlement applicable tothis Section1. For the Property Insured, the basis of settlement willbe as follows:

Property Insured Basis of Settlement

Building and Reinstatement or Replacement orContents (other Indemnity as specified in the Schedule.than those For empty Buildings awaitingspecified below) demolition, We will only pay the

salvage value of building materials,fixtures and fittings.

Customers’ Goods Reinstatement or Replacement

Directors’, Reinstatement or ReplacementPartners’ andEmployees’Personal Property

Stock in Trade The cost of restocking such goods or, ifthe goods are not restocked, theIndemnity value of the goods at thetime of the Damage.

2. For the purpose of this Section, the termsReinstatement or Replacement and Indemnity will applyas follows:

a. Reinstatement or Replacement

Where Your Schedule states that cover is forReinstatement or Replacement, claims will besettled as follows:

Where Property Insured is lost or whollydestroyed:in the case of a Building, its rebuilding or in thecase of Property Insured other than a Building,its replacement with similar property: in eithercase in a condition equal to, but not better ormore extensive than, its condition when new.

Where Property Insured is Damaged in partonly: the repair of the Damage and the restoration ofthe Damaged portion of the Property Insured toa condition substantially the same as, but notbetter or more extensive than, its conditionwhen new.

Provided that:

(i) the work of rebuilding, replacing, repairing orrestoring as the case may be (which may becarried out upon any other site(s) and in anymanner suitable to Your requirements, butsubject to Our liability not being increased),must be commenced and carried out within areasonable period, failing which We will not paymore than the Indemnity value of the DamagedProperty Insured at the time the Damageoccurred.

(ii) when any Property Insured to which this clauseapplies is Damaged in part only, Our liability willnot exceed the sum representing the cost whichWe could have been called upon to pay forreinstatement had the Property Insured beenwholly destroyed.

b. Indemnity

Where Your Schedule states that cover is forIndemnity, claims will be settled as follows:

If the Property Insured is Damaged in part or lost ortotally destroyed, We will pay the cost necessary toreinstate, replace or repair the Property Insured to acondition substantially the same as but not better ormore extensive than its condition at the time of theDamage, loss or destruction, taking intoconsideration age, condition, depreciation andremaining useful life.

3. Extra cost of reinstatement(Applicable to Buildings and Contents).

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Where cover is for Reinstatement or Replacement, thisSection extends to include the extra cost ofreinstatement (including demolition or dismantling) ofDamaged Property Insured necessarily incurred tocomply with the requirements of any Act of Parliamentor regulation made under an Act or any by-law or theregulation of any Municipal or other Statutory Authority.This cover is subject to the following provisions and theterms, conditions and sums insured of this Section.

However:

a. the work of reinstatement must be commenced andcarried out within a reasonable period, failing whichWe will not pay more than the amount which wouldhave been payable under the Policy if this additionalcoverage had not been included;

b. the work of reinstatement may be carried out whollyor partially upon any other site, if the requirementsof the Act, regulation or by-law necessitate it, subjectto Our liability not being increased;

c. all other insurances covering the Property Insuredeffected by You or on Your behalf must be on asimilar basis;

d. if the cost of reinstatement of Damaged PropertyInsured is less than 50% of that which would havebeen the cost of reinstatement if the PropertyInsured had been destroyed, the amount We will paywill be limited to the extra cost necessarily incurredin reinstating only that portion Damaged;

e. Our total liability will not exceed 50% of the SumInsured specified in the Schedule for the relevantProperty Insured;

f. the amount recoverable shall not include theadditional costs incurred in complying with anysuch Act, regulation, by-law or requirement withwhich You had been required to comply prior to theDamage occurring.

4. Floor space ratio index (plot ratio)

Where Reinstatement or Replacement is shown on theSchedule and Buildings are Damaged and reinstatementof the Damage is limited or restricted by:

a. any Act of Parliament or regulation under an Act; or

b. any by-law or regulation of any Municipal or otherStatutory Authority, resulting in the reduction of thefloor space ratio index (plot ratio) of the site, thenWe will pay in addition to any amount payable onreinstatement of these Buildings, the differencebetween:

(i) the actual costs incurred in reinstatementsubject to the reduced floor space ratio index(plot ratio); and

(ii) the estimated cost of reinstatement at the timeof Damage, had the reduced floor space ratioindex (plot ratio) not applied.

Our liability arising from any one occurrence for Damageor expenses caused by any of the Defined Events will notexceed in aggregate the sum insured stated in theSchedule in respect of the Building that is the subject ofthe claim.

5. Undamaged foundations

If, where a Building is destroyed but the foundations arenot, and, due to the exercising of Statutory Powersand/or Authority by any Government Department, LocalGovernment or other Statutory Authority, reinstatementof the Building has to be carried out upon another site,then the abandoned foundations will be considered to bedestroyed.

However, if the presence of the abandoned foundationsincreases the resale value of the original Building sitethen the increase in resale value will be regarded assalvage and will be payable to Us.

6. Maximum payment

Unless specifically stated, we will not pay more than theSum Insured shown against each item in the Schedule.

7. Claim payment

Until You actually incur the cost of Reinstatement orReplacement, We will not pay more than would berequired to settle Your claim in accordance with clause2b. Indemnity of the basis of settlement.

8. Cost of complying with regulations

The amount recoverable will not include any costincurred in complying with any Act, by-law, regulation,or requirement with which You had been required tocomply before the Damage occurred.

9. Excess

We will not pay the amount shown in the Schedule asthe Excess for this Section.

Additional benefits applicable tothis SectionWhere We have agreed to pay a claim under this Section,We will pay for the reasonable and necessary costs thatare incurred for the following additional benefits.

Our liability for these additional benefits will be limitedto:

a. the amount shown in the Schedule of the relevantadditional benefit; or

b. if no amount is shown in the Schedule then theamounts shown below, subject to the extent that the

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Sum Insured on Buildings, Contents or Stock inTrade (whichever is applicable) is not otherwiseexhausted.

1. Removal of Debris

a. the removal, storage and/or disposal of Debris or thedemolition, dismantling, shoring up, propping,underpinning or other temporary repairs;

b. the demolition and removal of any Property Insuredbelonging to You that is no longer useful for thepurpose for which it was intended, providing suchdemolition and removal is necessary for the purposeof the Reinstatement or Replacement;

These costs must be incurred with Our written consent.The most We will pay for one event is $20,000 or 10% ofthe Sum Insured, whichever is the greater.

2. Fire extinguishment costs

The reasonable costs necessarily incurred by You in theextinguishment of any fire at Your Situation, or any firewhich threatens Your Property Insured. This will includethe wages of employees necessarily and reasonablyincurred in extinguishing the fire and the cost ofreplenishing firefighting appliances.

The most We will pay for any one event is $25,000.

3. Temporary protection

Temporary protection and safety of Property Insuredpending replacement or repair of Damage covered bythis Section.

The most We will pay for any one event is $25,000.

4. Professional fees

Architects’, surveyors’, consulting engineers’, legal andother fees and clerks of works’ salaries for estimates,plans, specifications, quantities, tenders and supervisionnecessarily incurred in reinstatement or repair ofProperty Insured. We will not cover costs, fees andsalaries for preparing any claim under this Section. Allcosts must be incurred following Our written consent.

The most We will pay in respect of any one event is$20,000 or 10% of the Sum Insured, whichever is thegreater.

5. Government fees

Any fee, contribution or other impost payable to anyGovernment, Local Government or other StatutoryAuthority where payment of the fee, contribution orimpost is a condition precedent to the obtaining ofconsent to reinstate any Property Insured. However, Wewill not be liable for payment of any fines or penaltiesimposed upon You by any such authorities.

The most We will pay in respect of any one event for thisadditional benefit is $5,000.

6. Rewriting of records

The reasonable cost of clerical labour to restorecomputer records, documents, manuscripts, securities,deeds, specifications, plans, drawings, designs, businessbooks and other records of every description. All costsmust be incurred with Our written consent.

The most We will pay in respect to any one event is$25,000.

7. Directors’, Partners’ and Employees’ PersonalProperty

The repair or replacement of Directors’, Partners’ andEmployees’ Personal Property, which is Damaged by anevent not otherwise excluded, but only if the propertywas at the Situation at the time the Damage occurred.

The most We will pay is limited to $5,000 for any oneperson and $15,000 for any one event.

8. Contractual agreements

Notwithstanding general condition 15. Waiver ofsubrogation rights, where You:

a. enter into a lease for occupancy of any Building andthe terms of the lease contain a disclaimer ofliability in favour of the lessor; or

b. have been required by contractual agreement torelease Railways, Local Governments, Governmentsor semi-Government Authorities from their liabilityto You for loss or Damage covered by this Policy;

this insurance will not be prejudiced by You agreeing tosuch disclaimers or agreements.

In addition to the sums insured shown in the Schedule,We will also:

9. Capital additions

cover as Property Insured, alterations and additionsduring the Period of Insurance to the Property Insured,other than Stock in Trade.

The most We will pay is 10% of the Sum Insured for suchproperty or $500,000, whichever is the lesser.

10. Temporary removal

cover Property Insured while temporarily removed to anyother premises within the Commonwealth of Australia.

However:

a. the most We will pay for this additional benefit willbe 10% of the Sum Insured or $50,000, whichever isthe lesser;

b. this additional benefit will not apply to any PropertyInsured which has been removed from the Premises

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for a period greater than 60 days without Our priorwritten consent;

c. while property temporarily removed is in transit,cover is limited to Damage arising out of:

(i) fire,

(ii) lightning or thunderbolt,

(iii) explosion,

(iv) earthquake,

(v) impact by aircraft or other aerial devices orarticles dropped from them,

(vi) the acts of persons taking part in riots, civilcommotions, or labour disturbances or strikersor locked out workers,

(vii)malicious Damage,

(viii)wind or rainwater,

(ix) water bursting, overflowing, discharging orleaking from water tanks, pipes or apparatus,

(x) sprinkler leakage, or

(xi) impact by a vehicle.

11. Documents

cover documents (which means agreements,manuscripts, plans, specifications and writings of everydescription, office and business records includingcomputer systems records), anywhere within theCommonwealth of Australia whilst:

a. in the actual possession of any of Your partners,directors or authorised employees including whilstheld in their private residence;

b. in the actual possession of any other person withwhom the documents have been entrusted to ordeposited with in the normal course of business;

but excluding documents in transit by courier or post.

In the event of a claim, We will pay the cost ofreinstating, replacing, reproducing or restoring Yourdocuments, including information contained in or onthem, but excluding the value to You of that information;or, if this is not required, the replacement cost ofmaterials as blank stationery at the time and place of theDamage.

The most We will pay for this additional benefit is 20% ofthe Contents Sum Insured.

12. Exploratory costs

cover the reasonable costs of identifying and locating thesource of the Damage for which a claim is payable,where the Damage is caused by the discharge,overflowing or leakage from fixed apparatus, fixed

appliances, fixed pipes or other systems used to hold orconvey liquid of any kind. We will not pay for the repairor replacement of the apparatus, appliances, pipes orother systems which give rise to the Damage.

The most We will pay under this additional benefit is$5,000 for any one loss or series of losses arising out ofany one event.

13. Landscaping

cover the reasonable cost of restoring landscaping, trees,shrubs, plants and lawns following Damage but notroadways and paths. “Specific exclusions applicable tothis Section” 1.i. and 1.j., will not apply to this additionalbenefit.

We will not pay for Damage caused by storm, tempest orWater.

The most We will pay under this additional benefit islimited to $2,000 for any one loss or series of lossesarising out of any one event.

Specific exclusions applicable tothis Section1. We will not pay for loss or Damage to:

a. property undergoing construction, erection,alteration or addition when the value of workexceeds 10% of the Sum Insured for Buildings or$500,000, whichever is the lesser;

b. property while in transit other than:

(i) during the incidental movement of theproperty within Situations occupied by You,and/or

(ii) as provided under “Additional benefitsapplicable to this Section”, 9. Temporaryremoval and 10. “Documents”.

c. Money, cheques, promissory notes and anyother negotiable instrument of everydescription;

d. jewellery, furs, bullion, precious metals orprecious stones unless they are in the Premisesat the Situation at the time in the Damage, andthen limited to an amount not exceeding $2,000in total unless expressly stated otherwise in theSchedule;

e. curios, antiques or works of art unless they arein the Premises at the Situation at the time ofthe Damage, and then limited to an amount notexceeding $10,000 in total unless expresslystated otherwise in the Schedule;

f. any locomotive, rolling stock, watercraft, oraircraft, including their accessories and/or spareparts;

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g. motor vehicles, caravans, trailers, motorcycles,watercraft, aircraft or aerial devices or theaccessories to any of these;

h. livestock, animals, birds or fish;

i. standing timber, growing crops and pastures;

j. land, provided that this exclusion will not applyto structural improvements that are nototherwise excluded in this Section;

k. bridges, canals, roadways, tunnels, railwaytracks (other than on the Premises occupied orused by You), dams, reservoirs (other thantanks) and their contents;

l. signs, caused by wind or Water;

m. Property Insured in the open air unless suchproperty comprises or forms part of a structuredesigned to function without the protection ofwalls or roof caused by wind or Water;

n. pressure equipment arising out of failure by Youor Your employees or agents to comply with theAustralian Standard, or other legal requirementsapplicable to pressure equipment;

o. glass (as defined in Section Six – Glass), otherthan breakage by fire, lightning, explosion,implosion, earthquake, impact by vehicles oranimals, aircraft and other aerial devices and/orarticles dropped from them, riots or civilcommotion, malicious damage, wind or Water.

2. We will not pay for loss or Damage caused directly orindirectly by or in connection with or arising from oroccasioned through:

a. any legal liability of any nature;

b. the incorrect siting of Buildings;

c. demolition ordered by Government or Public orLocal Authorities due to failure by You or Youragents to obtain the necessary permits required;

d. (i) unexplained inventory shortages ordisappearances, or

(ii) shortages in the supply or delivery ofmaterials to or from You;

e. loss or Damage as a result of trickery;

f. spontaneous combustion, heating or anyprocess involving the direct application of heat,provided that this specific exclusion will belimited to the item(s) immediately affected andwill not extend to other Property InsuredDamaged as a result of the spontaneouscombustion;

g. deterioration, fermentation and putrefaction ofrefrigerated goods;

h. consequential loss of any kind, including lossresulting from delay or lack of performance, lossof contract or depreciation in value of anyundamaged Property Insured;

i. Pollution or Contamination except loss ordestruction of or Damage to Property Insured atYour Premises caused by:

(i) Pollution or Contamination at the Premiseswhich itself results from fire, lightning,explosion, aircraft or other aerial devices orarticles dropped from them, riot, civilcommotion, strikers, locked-out workers,people taking part in labour disturbances,malicious Damage, earthquake, storm,bursting, overflowing, discharging orleaking of water tanks, apparatus or pipes,sprinkler leakage or impact by any vehicleor animal,

(ii) any of the perils listed in (i) above whichitself results from Pollution orContamination.

j. loading or unloading, delivery or dispatch;

k. demolition, where the cost of demolition isgreater than $10,000;

l. adjusting, testing or servicing operations;

m. any process of heat treatment, welding,grinding, cutting, drilling, shaping or theapplication of tools but limited only to theProperty Insured undergoing treatment;

n. the failure of water, gas, electric or fuel supply;

o. recovery or repossession of the Property Insuredfor any reason;

p. data processing or media failure, breakdown ormalfunction of the processing system, includingoperator error or omission;

q. any process of cleaning, dyeing, repairing orrestoring.

3. We will not pay for loss or Damage caused by oroccasioned through:

a. wear and tear, fading, scratching or marring,gradual deterioration or developing flaws,normal upkeep or making good;

b. error or omission in design, plan or specificationor failure of design;

c. normal settling, seepage, shrinkage, orexpansion of Buildings or foundations, walls,pavements, roads and other structuralimprovements, creeping or heaving or vibration;

d. faulty materials or faulty workmanship;

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e. total or partial cessation of work or the retardingor interruption of work or the retarding orinterruption or cessation of any process oroperation as the direct result of strikes, labourdisturbances or locked out workers. This doesnot apply to the interruption or cessation orpartial cessation of any work, process oroperation resulting from Damage to PropertyInsured at the Premises caused by strikes,people involved in labour disturbances orlocked-out workers;

f. erosion, subsidence, earth movement orcollapse resulting therefrom;

g. fusion of electric motors;

h. mechanical, hydraulic, electrical or electronicbreakdown, failure, malfunction orderangement of any machine or electrical orelectronic device or temperature controllingequipment;

However, exclusions 3.a. to 3.h. will not apply tosubsequent Damage to Property Insured caused byany sudden or unexpected or unforeseenoccurrence, despite the fact that this occurrencemay in turn have been caused by any of thecircumstances referred to in exclusions 3.a. to 3.h.

i. access by people not authorised by You to Yourcomputer systems and records;

j. the actions of moths, termites or other insects,birds or vermin;

k. any of the following:

(i) mildew, mould, wet or dry rot,

(ii) rust, oxidation or corrosion;

l. change of colour, dampness of atmosphere orother variation in temperature, evaporation;

m. disease;

n. inherent vice or latent defect;

o. loss of weight;

p. change in flavour, texture or finish;

q. smog, smut, soot or smoke from industrialoperations;

r. fraud or dishonest acts, embezzlement, forgery,erasure, counterfeiting and fraudulentmisappropriation by electronic means orotherwise;

s. theft;

t. (i) Flood, being the inundation of normally dryland by water overflowing from the normalconfines of any natural watercourse or lake,

whether or not altered or modified, or ofany reservoir, canal or dam,

(ii) action of the Sea, Storm Surge, tidal wave,high Water, seepage or percolation ofWater or Water entering the Premises as aresult of structural defects, faulty design orworkmanship, unless Damage is caused byor results from an earthquake orseismological disturbance.

Specific conditions applicable tothis SectionThe following terms, conditions and limitations apply tothis Section. If You do not meet them, We may cancel thePolicy or reduce or refuse to pay a claim.

1. Designation of property

For the purpose of determining under which item anyproperty is insured, We agree to accept the designationunder which such property appears in Your books ofaccount.

2. Progress payments

At Our election or if required by You, progress paymentson account of any loss recoverable under this Sectionwill be made at intervals to be mutually agreed uponsubject to production of an interim report by the lossadjuster (if one is appointed). These payments will bededucted from the final claim settlement.

3. Underinsurance

In the event of Damage to the Property Insured, We willbe liable for no greater proportion of the Damage thanthe Sum Insured bears to 80% of:

a. where the basis of settlement is Reinstatement orReplacement, the reinstatement or replacement costof the Property Insured;

b. where the basis of settlement is Indemnity, the valueof the Property Insured, taking into account wear,tear and depreciation;

on the day of commencement of the Period of Insurance.

Underinsurance will not apply if the amount of theDamage is less than 5% of the Sum Insured. EverySituation insured is separately subject to this clause.This clause does not apply to any of the additionalbenefits.

4. Automatic sprinklers, alarms and/or chemicalextinguishers

Where Your Buildings are fitted with:

a. automatic sprinklers; and/or

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b. an automatic external alarm connected to a firestation; and/or

c. fully charged portable extinguishers of approveddesign;

You must ensure that they are maintained in soundworking order. Written notice of all alterations andadditions to any such installations in Buildings ownedor occupied by You must be given to Us without delay. If,in the exercise of due diligence in the propermaintenance of the automatic sprinkler equipment, itbecomes necessary:

a. to disconnect any water supply to the sprinklerinstallation; or

b. to remove any sprinkler; or

c. to render any automatic alarm inoperative;

in any portion of any Building for any period exceeding24 hours, (spread over the hours of daylight of not morethan 3 consecutive days), notice must be given to Us,except in cases of emergency or impracticability only,when such notification must be given with the leastpossible delay.

In the event of any failure by You to comply with theabove, We will not be liable for Damage to any PropertyInsured caused or contributed to by such disconnection,removal or rendering inoperative.

5. Indexation

We may automatically adjust the Sum(s) Insured eachyear according to the most appropriate price indices (asdetermined by Us). The premium You pay will be basedon the adjusted Sum(s) Insured.

Section Two – BusinessInterruptionThe coverWhere this Section is shown as insured on the Schedule,We will pay You, in accordance with the basis ofsettlement, for consequential loss resulting frominterruption of or interference with the Business thatoccurs during the Period of Insurance that is caused by:

a. an insured event covered under Section 1 – MaterialDamage or a Defined Event insured under Section 3– Theft or Section 6 – Glass; or

b. explosion of any boiler, pressure vessel, compressoror economizer on the Premises for which acertificate is required to be issued under the termsof any statute or regulation; or

c. Damage to Your Property Insured under any otherpolicy that provides the same insurance cover asSection 1 – Material Damage, Section 3 – Theft orSection 6 – Glass, where liability for the Damage hasbeen admitted by Your insurer.

Where it is noted on the Schedule that cover is for“Additional increase in cost of working” only, claims willbe settled in accordance with clause 2. of the basis ofsettlement – Additional increase in cost of working.

Where the application of an Excess prevents Yourclaiming for the Damage, this will not limit Your abilityto claim under this Section of the Policy.

Definitions applicable to this Section“Annual Gross Revenue” means the Gross Revenue earnedduring the twelve months immediately before the date ofthe Damage.

Both the Standard Gross Revenue and Annual GrossRevenue will be adjusted as necessary to provide for thetrend or other variations affecting the Business, eitherbefore or after the Damage, or which would have affectedthe Business but for the Damage occurring, so that theadjusted figures will represent as nearly as reasonablypracticable the Business results that would have beenachieved during the relative period after the Damage.

“Gross Revenue” means the money paid or payable toYou for services provided (and Stock in Trade, if any,sold) in the course of the Business at the Premises.

“Indemnity Period” means the period beginning with theoccurrence of the Damage and ending not later than thenumber of months specified in the Schedule thereafterduring which the results of the Business are affected inconsequence of the Damage.

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“Standard Gross Revenue” means the Gross Revenueduring that period in the twelve months immediatelybefore the date of the Damage that corresponds with theIndemnity Period.

“Uninsured Working Expenses” means those expensesYou chose not to insure as shown in Your Proposal.

Basis of settlement applicable tothis SectionWe will pay to You:

1. Gross Revenue

the actual loss of Gross Revenue and Increase in cost ofworking and the amount payable as indemnity will be:

a. in respect of Reduction in Gross Revenue:

the amount by which the Gross Revenue during theIndemnity Period shall, as a result of the Damage,fall short of the Standard Gross Revenue,

b. in respect of Increase in cost of working:

the additional expenditure necessarily andreasonably incurred for the sole purpose of avoidingor diminishing the loss of Gross Revenue that, butfor that expenditure, would have taken place duringthe Indemnity Period in consequence of the Damage,but not exceeding the amount of the reduction inGross Revenue so avoided;

less any sum saved during the Indemnity Period inrespect of the charges and expenses of the Businesspayable out of Gross Revenue that cease or are reducedin consequence of the Damage and any UninsuredWorking Expenses.

2. Additional increase in cost of working

the increase in cost of working (not otherwiserecoverable under this Policy) necessarily andreasonably incurred during the Indemnity Period as aresult of the Damage for the purpose of avoiding ordiminishing reduction in Gross Revenue and/orresuming and/or maintaining normal Businessoperations and/or services.

Our liability under this Section will not exceed the SumInsured stated against each item in the Schedule.

Additional benefits applicable tothis Section1. Claims preparation expenses

In addition to the amount payable under item 1. GrossRevenue of the basis of settlement, We will pay the costsof reasonable professional fees as may be payable byYou, and other reasonable expenses necessarily incurred

by You and not otherwise recoverable, for preparation ofclaims under this Section.

The most We will pay in respect of any one claim is$5,000 or the amount shown in the Schedule for Claimspreparation expenses, whichever is the greater.

2. Computer

This Section extends to include loss (not otherwiserecoverable) resulting from interruption of orinterference with the Business occasioned by Damage asdetailed in a., b. or c. of The cover to computerinstallations, including ancillary equipment and dataprocessing media utilised by You anywhere in Australia.

3. Additional premises

If You acquire or use during the Period of Insurance anyother premises within the Commonwealth of Australiafor the purpose of the Business, We will treat anyDamage relating to those premises as covered by thisSection of the Policy provided that We are advised of theuse or acquisition of the premises within thirty (30) days,and You pay Us the additional premium We require tocover the premises.

4. Other property

This Section extends to include loss due to interruptionor interference to the Business due to Damage to otherproperty, which had it been insured under this Policy,would have resulted in an admissible claim underSection 1 – Material Damage, Section 3 – Theft or Section6 – Glass which occurs:

a. within a 5km radius of Your Premises whichprevents the use of or access to the Premises;

b. at any electricity station or substation, gas works orwater works of a public supply undertaking fromwhich You obtain electric current, gas or water.Where the public supply undertaking is not at orimmediately adjacent to Your Premises theinterruption of supply must extend for longer than48 hours for this additional benefit to apply.

c. in any commercial complex of which the Premisesforms a part or in which the Premises are contained,that prevents or hinders the use of or access to thePremises which results in cessation or diminution oftrade, including any cessation or diminution of tradedue to temporary falling away of potential custom.

5. Closure by authority, poisoning, murderor suicide

This Section extends to include loss due to interruptionor interference to the Business due to:

a. closure or evacuation of the whole or part of thePremises by order of a competent public authority asa result of:

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• infectious or contagious disease manifested byany person while at the Premises, vermin orpests or defects in the drains or other sanitaryarrangements at the Premises; or

• the outbreak of a notifiable human infectious orcontagious disease occurring within a 20kmradius of the Premises;

b. poisoning directly caused by the consumption offood or drink provided on the Premises;

c. murder or suicide occurring in or at the Premises.

The most We will pay for loss arising from this additionalbenefit is $50,000.

Optional Benefits applicable tothis SectionWhen the applicable Optional Benefit is shown ascovered in the Schedule and consequent upon a claimbeing admitted under this Section, We will also payYou up to the amount shown in the Schedule for theOptional Benefit for:

1. Loss of rent

Loss of rent receivable in respect of the Buildings shownon the Schedule and loss of amounts due for servicesrendered and/or recoverable expenses. We will pay theamount by which rent and amounts for servicesrendered and/or recoverable expenses received orreceivable during the Indemnity Period falls short of theamount that it may be reasonably estimated would havebeen received during that period had the Damage notoccurred, including the additional expenditurenecessarily and reasonably incurred for the sole purposeof avoiding or diminishing the loss of rent and loss ofamounts for services rendered and/or recoverableexpenses, less any sum saved during that period inrespect of the charges or expenses payable out of rentthat cease or are reduced in consequence of the Damage.

2. Accounts receivable

all sums due to You from customers that You are unableto collect because of Damage to records of accountsreceivable. We will also pay collection expenses in excessof normal collection costs made necessary because ofthe Damage as well as interest charges at the ruling rateof Your bank on any loan to offset impaired collectionspending repayment of such sums made uncollectable bysuch Damage.

If You cannot accurately establish the total amount ofaccounts receivable outstanding as at the date of loss,the amount will be computed as follows:

a. determine the amount of all outstanding accountsreceivable at the end of the same fiscal month in the

year immediately preceding the year in which theloss occurs;

b. calculate the percentage of increase or decrease inthe average monthly total of accounts receivable forthe year immediately preceding the month in whichthe loss occurs, as compared with such average forthe same months of the preceding year;

c. the amount determined under a., increased ordecreased by the percentage calculated under b.above, will be the agreed total amount of accountsreceivable as of the last day of the fiscal month inwhich said loss occurs;

d. the amount determined under c. above, will beincreased or decreased in conformity with thenormal fluctuation in the amount of accountsreceivable during the fiscal month involved,consideration being given to the experience of theBusiness since the last day of the last fiscal monthfor which statements have been rendered less:

(i) the amounts of such accounts evidenced byrecords not suffering Damage or otherwiseestablished or collected by You,

(ii) an amount to allow for probable bad debts thatwould normally have been uncollectable by You,

(iii) all unearned interest and service charges, and

(iv) settlement or term discounts normally allowed.

Specific conditions applicable tothis Section1. Underinsurance

If the Sum Insured for Gross Revenue at thecommencement of each Period of Insurance is less thanthe sum produced by applying the Gross Revenue to 80%of the Annual Gross Revenue, (or its proportionatelyincreased multiple of it, where the Indemnity Periodexceeds 12 months) the amount payable under thisSection will be proportionately reduced.

This condition will not apply if the amount of the claimdoes not exceed 10% of the Sum Insured for this Section.

2. Departmental clause

If Your Business is conducted in departments and thetrading results of each department can be determinedindependently then Clauses 1(a) and 1(b) of the basis ofsettlement applicable to this Section will applyseparately to each department affected by the Damage.

3. Alterations and forfeiture

We will not pay any claim under this Section if theBusiness is dissolved, wound up or carried on by either aliquidator, administrator or a receiver or is permanently

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discontinued or You, being a natural person, aredeclared bankrupt.

4. Turnover elsewhere after Damage

If during the Indemnity Period You or others on Yourbehalf operate the Business from premises other thanthose specified in the Schedule then the revenue soearned will be brought into account when calculatingthe Gross Revenue.

5. Progress claim payments

Progress payments on account of any loss recoverableunder this Section will be made at intervals to bemutually agreed upon if You so require and uponproduction of an interim report by the loss adjuster (ifone is appointed).

6. Books of account

Any particulars or details contained in Your books ofaccount or other Business books or documents that maybe required by Us for investigating or verifying any claimmade under this Section may be produced and certifiedby Your auditors and their certificate will be prima facieevidence of the particulars and details to which thecertificate relates.

The words and expressions used in this Section will havethe meanings usually attached to them in Your booksand accounts unless otherwise defined in this Policy.

7. New business

In the event of Damage occurring at the Premises beforethe completion of the first year’s trading of the Business,the terms “Annual Gross Revenue” and “Standard GrossRevenue” shall have their meanings altered to reflect theperiod the Business has been trading to the date of theDamage, converted to a 12 month equivalent figure.

Section Three – TheftThe coverWhere this Section is shown as insured on the Schedule,We will cover the Property Insured against loss orDamage due to a Defined Event. The most We will pay isthe Sum Insured for Contents, Stock in Trade andCustomers’ Goods under Section One – Material Damageor $500,000 whichever is the lesser. All claims will besettled in accordance with the basis of settlement.

Defined Event applicable to this SectionTheft from the Premises.

Basis of settlement applicable tothis SectionThe basis of settlement following the happening of aDefined Event to the Property Insured will beReinstatement or Replacement unless otherwise shownin the Schedule.

For the purpose of this Section, the term Reinstatementor Replacement means the cost necessary to replace,repair or rebuild the Property Insured to a conditionsubstantially the same as but not better or moreextensive than its condition when new.

However:

a. other than for additional benefits 6. and 7., We willnot pay more than the Sum Insured shown againsteach item in the Schedule;

b. until You actually incur the cost of reinstatement Wewill not pay any more than the cost necessary toreinstate, replace or repair the Property Insured to acondition substantially the same as but not better ormore extensive than its condition at the time of theDamage, loss or destruction, taking intoconsideration age, condition, depreciation andremaining useful life.

ExcessWe will not pay the amount shown in the Schedule asthe Excess for this Section.

Additional benefits applicable tothis SectionFollowing a claim being admitted under this Section, Wewill pay for the reasonable and necessary costs that areincurred for the additional benefits listed below.

Our liability for these additional benefits will be:

(i) limited to the relevant amount shown in theSchedule; or

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(ii) if no amount is shown in the Schedule, the amountshown below, subject to the extent that the SumInsured is not otherwise exhausted.

1. Damage to the Building at the Situation

Damage to the Building and/or its fixtures and fittingscaused by forcible and violent entry to or exit from theBuilding.

2. Temporary protection

Temporary protection of Property Insured pending repairor replacement following Damage by a Defined Event, toa maximum of $5,000 for any one event.

3. Rewriting or replacing records

Rewriting or replacing necessary written or printeddocuments, computer system records, Business records,plans or designs to a maximum of $5,000 for any oneevent, however We will not cover the cost of obtainingany information to be rewritten or recorded.

4. Documents

Documents (which means deeds, wills, agreements,manuscripts, plans, specifications and writings of everydescription, office and business records includingcomputer systems records), anywhere within theCommonwealth of Australia whilst:

a. in the actual possession of any of Your partners,directors or authorised employees including whilstheld in their private residence;

b. in the actual possession of any other person withwhom the documents have been entrusted to ordeposited within the normal course of business;

but excluding:

a. documents in transit by courier or post;

b. theft whilst in an unattended vehicle, unless therewas forcible and violent entry into the vehicle.

In the event of a claim, We will pay the cost ofreinstating, replacing, reproducing or restoring Yourdocuments, including information contained in or onthem, but excluding the value to You of that information;or, if this is not required, the replacement cost ofmaterials as blank stationery at the time and place of theDamage. The most We will pay for this additional benefitis up to a limit of 20% of the Contents Sum Insured.

5. Directors’, Partners’ and Employees’ PersonalProperty

To the extent the Directors’, Partners’ and Employees’Personal Property is not otherwise insured, to amaximum of $2,000 for any one person and $5,000 forany one event.

6. Replacement keys and locks

For:

a. replacing locks and/or keys and/or combinationsand/or the cost of opening Safes, where, if because ofa Defined Event the keys and/or combinations arestolen, or if there are reasonable grounds to believethe keys may have been duplicated;

b. replacing and developing security film where it isexposed because of a Defined Event;

up to a maximum of $5,000 in any one period ofinsurance.

7. Temporary removal

Property Insured while temporarily removed from YourPremises to any other premises within theCommonwealth of Australia.

Provided that:

a. We will not cover the following property:

(i) Stock in Trade, Customers’ Goods and/ormerchandise,

(ii) tobacco, cigarettes, cigars and liquor,

(iii) registered motor vehicles,

(iv) Property Insured whilst in transit.

b. The most We will pay for this additional benefit willbe 20% of the Sum Insured for Contents, Stock inTrade and Customers’ Goods under Section One –Material Damage or $100,000, whichever is thelesser.

c. This additional benefit will not apply to PropertyInsured which has been removed for a period greaterthan 60 days.

d. This additional benefit will not apply to any otherpremises where the physical security and protectionare of a lower standard than at the Situation.

Specific exclusions applicable tothis SectionWe will not pay for:

1. loss or Damage arising directly or indirectly out ofor in any way connected with theft or any attempt attheft, to:

a. Money, patterns, models, moulds, plans, ordesigns;

b. jewellery, furs, bullion, precious metals orprecious stones for an amount in excess of$1,000 for any one item or $5,000 in total;

c. curios or works of art for an amount in excess of$1,000 for any one item or $10,000 in total;

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d. live animals, birds or fish or any other livingcreature; or

e. plants, shrubs, landscaping or growing crops,pastures or standing timber;

unless expressly stated in the Schedule;

2. loss or Damage arising directly or indirectly out of orin any way connected with theft or any attempt attheft committed by:

a. any member of Your family or a director;

b. any persons while lawfully on the Premises;

c. the collusion of or the fraudulent embezzlementby or the fraudulent misappropriation by You orany person employed by You;

3. loss or Damage arising directly or indirectly out of orin any way connected with fire;

4. loss or Damage to glass or the cost of replacingsign-writing, ornamentation, reflective materialsand burglar alarm tapes and connections attachedto the glass;

5. loss or Damage arising during or in consequence ofearthquake or subterranean fire, unless You are ableto prove that the Damage happened independentlyof these events;

6. loss or Damage arising directly or indirectly out of orin any way connected with Your relaxing orchanging any security precaution that affects itseffectiveness without Our consent;

7. loss or Damage to motor vehicles, unless expresslystated in the Schedule;

8. loss or Damage to Property Insured in the open air;

9. loss or Damage arising directly or indirectly out of orin any way connected with theft or any attempt attheft of Property Insured from a Safe, Strongroom orsecurity enclosure opened by a key or by use of thedetails of a combination either of which has beenleft on Your Premises while closed for Business;

10. loss or Damage arising directly or indirectly out of orin any way connected with the dishonestmanipulation of any database or computer system.

Specific conditions applicable tothis SectionIf a burglar alarm system is installed in the Premises thefollowing conditions apply:

1. The burglar alarm must be well maintained and ingood working condition at all times.

2. The burglar alarm must be made operativewhenever the Premises are left unoccupied.

3. If the burglar alarm system relies upon eitherelectricity or communication services to operate inthe correct manner, electricity and communicationservices must be connected to the burglar alarm andoperational at all times unless the power supply hasfailed due to unforeseen circumstances beyond Yourcontrol.

If You do not comply with these conditions, We maycancel Your Policy or reduce or refuse to pay a claim.

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Section Four – MoneyThe coverWhere this Section is shown as insured on the Schedule,We will cover You against loss or Damage, not otherwiseexcluded, to Money as specified below which occursduring the Period of Insurance. We will also coverDamage to Safes or Strongrooms as specified below. Allclaims will be settled in accordance with the basis ofsettlement.

Definition applicable to this Section“Business Hours” means the period You or peopleauthorised by You are normally at the Premises for thepurpose of conducting the Business.

When cover is providedYou have the option of selecting from a number ofcovers. Your Schedule will show which covers You haveselected and the applicable Sum Insured.

1. Money in transit, which covers:

a. Money in transit to or from the Premises while inYour personal custody or the custody of people thatYou have authorised;

b. Money while contained in the nightsafe of any bankat which You normally transact business providedthat Our liability for Money in nightsafes will ceaseat bank closing time on the next bank business dayfollowing deposit;

c. Money drawn as wages and/or salaries and carriedby You and/or people authorised by You while on thePremises until paid out provided that:

(i) Our liability in respect of Money not paid out onthe day of withdrawal from the bank will belimited to a maximum of 40% of the withdrawal;

(ii) during non-business hours Money is kept in asecurely locked Safe or Strongroom on thePremises.

2. Money contained in the Premises, which coversMoney:

a. during Business Hours;

b. outside Business Hours;

c. only while contained in a securely locked Safe orsecurely locked Strongroom.

3. Money in Your personal custody, which coversMoney in Your personal custody or the custody ofpeople that You have authorised while contained inYour/their private residences but Our liability willcease at bank closing time on the next bank

business day or after 48 hours, whichever is the later,following the day on which the Money was takeninto custody.

4. Safes or Strongrooms, which covers loss or Damagecaused by unauthorised people attempting to gainentry to the Safe or Strongroom.

Basis of settlement applicable tothis SectionWe will pay You the amount of Money lost or Damaged,less the Excess listed in the Schedule.

We will not pay more than the Sum Insured statedagainst each item in the Schedule.

In the case of loss of subscription, conversion orredemption privileges through the loss of any security,the value of such privileges will be their valueimmediately before their expiration, such valuationbeing in the currency in which the loss was sustained.Losses sustained in currencies other than Australiandollars will be settled by converting the amount of lossto Australian dollars at the market rate at the time ofsettlement of the loss or such other rates as may havebeen expressly agreed with Us. If there is no market priceor value on the relevant day stated in this paragraph,then the value will be agreed between You and Us, or ifWe cannot agree, We and You will submit to arbitrationand will be bound by the decision of the umpire.

In the case of Safes, Strongrooms or cash carrying bags,the Basis of Settlement will be:

a. Where stolen or Damaged beyond repair:Replacement with similar property in a conditionequal to, but not better or more extensive than,its condition when new.

b. Where Damage can be repaired:The repair of the Damage and/or the restorationof the Damaged portion of the Safe, Strongroom orcash carrying bags to a condition substantially thesame as, but not better or more extensive than, itscondition when new.

c. We will also pay for demolition or destruction ofsound property necessary for the purpose ofreplacement or reinstatement and for Damage tothe Building and/or fixtures and fittings as a resultof theft or attempted theft of Money.

Provided that Our liability will not exceed the SumInsured shown against Defined Event 4. in the Schedule.

ExcessWe will not pay the amount shown in the Scheduleas the Excess for this Section.

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1. loss or Damage due to shortages arising directly orindirectly from or in any way connected with clericalor accounting errors or loss due to errors inreceiving or paying out;

2. loss or Damage not discovered within 7 workingdays of the occurrence;

3. loss or Damage by or through the collusion of or thefraudulent embezzlement or fraudulentmisappropriation by You, a member of Your familyor any person employed by You;

4. loss of or Damage to Money carried by professionalmoney carriers, collectors or professional carriers orcommon carriers;

5. loss from an unattended motor vehicle;

6. loss from a Safe or Strongroom opened by a key or byuse of details of a combination, either of which hasbeen left on Your Premises while closed for Business;

7. loss arising out of the payment of Money for, or inconsideration of, a cheque or negotiable instrumentwhich is subsequently dishonoured;

8. loss or Damage as a result of trickery.

Section Five – GeneralPropertyThe coverWhere this Section is shown as insured on the Schedule,We will settle Your claim in accordance with the basis ofsettlement if any of the Property Insured shown in theSchedule under this Section:

1. is Damaged;

2. by any sudden or unexpected or unforeseenoccurrence not otherwise excluded; and

3. which occurs during the Period of Insurance.

Basis of settlement applicable tothis SectionThe basis of settlement will be:

1. where Damage to Property Insured can be repaired,the reasonable cost of restoring the Damaged itemto its former working order. If You complete therepairs Yourself We will pay the reasonable cost ofmaterials and wages as well as a reasonableallowance to cover any overheads.

2. where a Damaged item is not repaired:

a. for items that could not be repaired, theirreplacement with similar items in a conditionequal to, but not better or more extensive thanthe condition of the original items when new; or,

b. for items that could be repaired but have beenreplaced, the estimated cost that would havebeen incurred for necessary repairs to return theDamaged items to their former state ofserviceability.

We will not pay more than $2,000 for any item notspecifically listed in the Schedule.

We will not pay more than the Sum Insured shown foreach item in the Schedule for any one event.



1. Damage to Property Insured outside theCommonwealth of Australia.

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2. Damage caused by or arising directly or indirectlyout of or in any way connected with:

a. spontaneous combustion, heating or anyprocess involving the direct application of heat,provided that this specific exclusion will belimited to the item(s) immediately affected andwill not extend to other Property InsuredDamaged as a result of the spontaneouscombustion;

b. fermentation, deterioration and putrefaction ofrefrigerated goods;

c. action of the Sea or tidal wave;

d. Flood, other than Damage to Property Insuredfrom Flood when contained in a motor vehicle;

e. theft other than theft resulting from forcible andviolent entry evidenced by visible damage to:

(i) the securely locked portion of any Building,or

(ii) the securely locked vehicle containing theProperty Insured, or

(iii) a locked container secured to a vehicle.

f. theft of property in the open air;

g. fraud or dishonest acts, embezzlement, forgery,erasure, counterfeiting and fraudulentmisappropriation by electronic means orotherwise;

h. (i) unexplained inventory shortages ordisappearances,

(ii) shortage in the supply or delivery ofmaterials to or from You;

i. loss or Damage as a result of trickery;

j. loading or unloading, delivery or dispatch;

k. demolition, where the cost of demolition isgreater than $10,000;

l. adjusting, testing or servicing operations;

m. any process of heat treatment, welding,grinding, cutting, drilling, shaping or theapplication of tools to the Property Insured;

n. mechanical, hydraulic, electrical or electronicbreakdown, failure, malfunction orderangement of any machine or electrical orelectronic device or temperature controllingequipment;

o. moths, termites or other insects, vermin, rust oroxidation, mildew, mould, contamination orpollution, wet or dry rot, corrosion, change ofcolour, dampness, light, variations in or

extremes of temperature, evaporation, disease,inherent vice, latent defect, change in flavour,texture or finish, or smut or smoke fromindustrial operations;

p. wear and tear, fading, scratching or marring,chipping or denting, gradual deterioration,developing flaws, normal upkeep or makinggood;

q. the failure of water, gas, electric or fuel supply;

r. recovery or repossession of the Property Insuredfor any reason;

s. data processing or media failure or breakdown,or malfunction of a processing system,including operator error or omission, orcomputer virus; or

t. any process of cleaning, dyeing, repairing orrestoring.

3. Damage caused to:

a. motor vehicles, caravans, trailers, motorcycles,watercraft, aircraft or aerial devices or theaccessories to any of these;

b. Property Insured in the course of construction,erection, renovation or demolition;

c. (i) Money,

(ii) glass or items of a brittle nature,

(iii) jewellery, furs, bullion, precious metals orprecious stones,

(iv) curios or works of art,

(v) mobile phones, photographic equipment,computer equipment unless specified inthe Schedule, or

(vi) any guns, sporting equipment or musicalinstruments while they are in use.

d. Property Insured in the open air caused by wind,rainwater or hail unless the property is designedto function without the protection of walls or aroof;

e. Property Insured should it be lost or Damagedduring use or recovery whilst in useunderground, underwater or within inaccessiblelocations;

f. livestock, animals, birds or fish;

g. standing timber, growing crops and pastures;

h. land.

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Section Six – GlassThe coverWhere this Section is shown as insured on the Schedule,We will pay You in accordance with the basis ofsettlement if any Glass is Damaged at the Situation by aDefined Event which occurs during the Period ofInsurance.

Definitions applicable to this Section“Breakage” means a fracture extending through theentire thickness of the Glass, perspex or plastic or in thecase of laminated Glass, the entire thickness of thelaminate. “Broken” has a corresponding meaning to“Breakage”.

“External Glass” means fixed glass, perspex and plasticmaterial used in external windows, doors, skylights andshowcases at the Premises.

“Glass” External Glass and Internal Glass, belonging toYou or for which You are legally responsible or haveassumed responsibility before the Damage.

“Internal Glass” means fixed glass, perspex and plasticmaterial in internal partitions, doors, windows, counters,shelves and stock restraints, showcases, mirrors(including hanging mirrors) and ceramic vitreous chinaurinals, lavatory pans, cisterns and wash basins.

Defined Event applicable to this SectionLoss or Damage caused by accidental breakage.


1. on Glass (other than illuminated signs), the value ofinsured Glass being the purchase price of Glass ofsimilar manufacture and quality, or the manufactureand quality that are necessary to comply with therequirements of any statutory authority, whichever ishigher, including the cost of installation;

2. on illuminated signs, the cost of repairing orreplacing them. Where they are not repaired or replaced,We will pay to You the value of them at the time andplace of the Damage. We will not pay more than the SumInsured shown against illuminated signs in theSchedule.


Additional benefits applicable tothis SectionWhere we have agreed to pay a claim under this Section,We will pay for the reasonable and necessary costs thatare incurred for the following additional benefits:

1. Damage to window or door frames, tiled shop frontsand Stock in Trade;

2. the cost of temporary shuttering and security,signwriting, ornamentation, reflective materials andalarm tapes.

Our liability for these additional benefits will be limitedto a maximum of $5,000 for any one event.


1. any disfiguration or Damage to Glass other thana fracture extending through its entire thickness,or in the case of laminated glass, through an entirelaminate;

2. Breakage arising directly or indirectly from or inconsequence of fire, artificial heat, subterraneanfire or Flood;

3. cracked, chipped or imperfect Glass;

4. Glass when in transit or while being fitted intoposition or removed from its fitting;

5. Damage to Glass forming part of Your Stockin Trade;

6. Damage to Glass forming part of shade houses,fibreglass houses or glasshouses.

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Section Seven – Publicand Products LiabilityThe coverWhere this Section is shown as insured on the Schedule,We will insure You for all amounts which You becomelegally liable to pay as compensation (excludingpunitive, exemplary and aggravated damages) forPersonal Injury and/or Property Damage occurringwithin the Territorial Limits as a result of an Occurrencein connection with Your Business, up to the Limit ofIndemnity stated in the Schedule.

Definitions applicable to this Section“Aircraft” means any vessel, craft or device made orintended to fly or move in or through the atmosphere orspace.

“Employment Practices” means any wrongful or unfairdismissal, denial of natural justice, defamation,misleading representation or advertising, sexualharassment or discrimination in respect of employmentby You.

“Hovercraft” means any vessel, craft or device made orintended to float on or in or travel on or through theatmosphere or water on a cushion of air provided by adownward blast.

“Incidental Contracts” means:

a. any written rental agreement or lease of realproperty which does not impose on You;

(i) an obligation to insure such property, or

(ii) any liability regardless of fault;

b. any written contract with any public authority forthe supply of water, gas or electricity but only to theextent of indemnifying any such authority in respectof liability arising out of Your Business andexcepting contracts for the performance of work orprovision of services by You.

“Limit of Indemnity” means the amount(s) stated in theSchedule as the Limit of Indemnity or any lesser limitshown in the Schedule or this document. The Limit ofIndemnity is inclusive of and not additional to anyapplicable Excess.

“Medical Persons” means legally qualified medicalpractitioners, legally qualified enrolled and registerednurses, dentists and first aid attendants.

“Occurrence” means an event including continuous orrepeated exposure to substantially the same generalconditions which results in Personal Injury or Property

Damage neither expected nor intended by You. Alloccurrences of a series consequent upon or attributableto one source or originating cause are deemed to be oneOccurrence.

“Personal Injury” means:

a. death, bodily injury, sickness, disease, disability,shock, fright, mental anguish and mental injury;

b. (i) false arrest, wrongful detention orimprisonment, malicious prosecution,

(ii) wrongful eviction,

(iii) assault or battery,

(iv) libel, slander, defamation of character orinvasion of right of privacy;

which occurs during the Period of Insurance.

In the event of Personal Injury claims arising from latentinjury, latent disease, latent sickness or latent disability,such injury, disease, sickness or disability in respect ofeach claim shall be deemed to have occurred on the daysuch injury, disease, sickness or disability was firstmedically diagnosed.

“Pollutants” means any solid, liquid, gaseous or thermalirritant or contaminant, including but not limited tosmoke, vapour, soot, fumes, acids, alkalis, chemicals orwaste. Waste includes material to be recycled,reconditioned or reclaimed.

“Property Damage” means:

a. physical damage to, physical loss of or physicaldestruction of tangible property that occurs duringthe Period of Insurance including any resultant lossof use; or

b. loss of use of tangible property that has not beenphysically damaged, physically lost or physicallydestroyed provided such loss of use is caused byphysical damage to, physical loss of or physicaldestruction of other tangible property that occursduring the Period of Insurance.

“Territorial Limits” means:

a. anywhere within Australia or its external territories;

b. elsewhere in the world but only in respect of:

(i) travelling executives or salesmen who arenormally resident in Australia;

(ii) Your Products exported to anywhere in theworld except the United States of America orCanada or any country, territory or protectorateto which the laws of the United States ofAmerica or Canada apply.

“Tool of Trade” means a Vehicle which has any tool orplant forming part of or attached to or used in

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connection with it while such tool or plant is inoperation for the purpose of the Business, but does notinclude:

a. Vehicles while in transit to or from or within anyplace of work; or

b. Vehicles used for transport or haulage.

“Vehicle” means any type of machine on wheels or onself laid tracks made or intended to be propelled by otherthan manual or animal power and any trailer or otherattachment made or intended to be drawn by any suchmachine.

“Watercraft” means any vessel, craft or thing (other thana Hovercraft) made or intended to float on or in or travelon or through water.

“Worker” means any person employed by You or deemedto be employed by You pursuant to any law.

“Workers’ Compensation Law” means any law relating tocompensation for injury to Workers or employees.

“You”, “Your”, “Yours" means:

a. The Insured shown in the Schedule;

b. any subsidiary companies of a. above, existing at thecommencement date of the Period of Insurance asshown in the Schedule, whose place of incorporationis within Australia or its external territories;

c. (i) any company acquired by, and whoseoperations are controlled and managed by, TheInsured shown in the Schedule or a companyreferred to in b. above during the Period ofInsurance as a result of consolidation, merger orpurchase;

(ii) any subsidiary company that is incorporated byThe Insured shown in the Schedule or by acompany referred to in b. above, during thePeriod of Insurance.

However:

(i) any such acquisition or incorporation must benotified to Us within 90 days;

(ii) the newly acquired or incorporated companymust conduct the same type of business as YourBusiness, and

(iii) the newly acquired or incorporated companymust be incorporated within Australia or itsexternal territories;

d. (i) any director, executive officer, employee orpartner of The Insured shown in the Schedule ora company referred to in b. or c. above, but onlywhile acting within the scope of their duties insuch capacity, and

(ii) any shareholder of a company referred to in a.,b. or c. above, but only while acting within thescope of their capacity as shareholders of suchcompany;

e. any principal in respect of the liability of suchprincipal arising out of the performance by TheInsured shown in the Schedule or a companyreferred to in b. or c. above, of any contract oragreement for the performance of work for suchprincipal but only to the extent required by suchcontract or agreement, and limited always to theextent of cover and Limit of Indemnity provided inthis Policy;

f. any office bearer or member of a social and/orsporting club formed with the consent of any of theparties in a., b., c. or d. above.

“Your Products” means anything (after it has ceased to bein Your physical possession or under Your control)manufactured or deemed to have been manufactured,constructed, grown, extracted, produced, processed,assembled, erected, installed, repaired, serviced, treated,sold, supplied (including services) or distributed by Youincluding any container (other than a Vehicle).

Limit of Indemnity and Excessapplicable to this SectionThe Limit of Indemnity is the amount stated in theSchedule. This is the maximum amount We will pay inrespect of any one Occurrence provided that, for all legalliability directly or indirectly arising out of Your Products,Our total aggregate liability during any one Period ofInsurance will not exceed the Limit of Indemnity. Youmust pay the amount shown in the Schedule as theExcess in respect of each claim for Property Damage.

Supplementary paymentsSubject to the provisos below, in addition to the Limit ofIndemnity, We will also make the followingsupplementary payments:

a. all charges, expenses and legal costs incurred by Usand/or by You with Our prior written consent in theinvestigation, reporting, settlement or defence of anyclaim or suit for compensation for which:

(i) You are entitled to cover under this Policy, or

(ii) You would be entitled to cover under this Policyif such claim or suit were to be sustained;

b. all legal costs taxed against You in any such suit orclaim and all interest on the judgement orsettlement amount accruing after the entry ofjudgement against You until We have paid, tenderedor deposited in court such part of the judgement asdoes not exceed the Limit of Indemnity;

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c. all expenses incurred by You for providing first aid toothers for Personal Injury for which You are coveredby this Policy (other than medical expensesprohibited by law).

However:

(i) if a payment exceeding the Limit of Indemnity has oris required to be made to dispose of a claim, Ourliability to make supplementary payments will belimited to the proportion of the supplementarypayments as the Limit of Indemnity bears to theamount paid or required to be paid to dispose of theclaim. Where the application of this clause meansthat You are liable to repay supplementarypayments to Us, We may set off the amount that Youowe Us against any other entitlements You haveunder this Policy;

(ii) supplementary payments in connection with claimsmade and/or actions instituted against You withinthe United States of America or Canada or claimsand actions to which the laws of the United States ofAmerica or Canada apply form part of the Limit ofIndemnity and will not be additional to it.

Specific exclusions applicable tothis SectionThis Section does not cover any actual or alleged liability:

1. Aircraft, Hovercraft

arising directly or indirectly out of or in any wayconnected with:

a. the ownership, possession, maintenance, repair,operation or use by You or on Your behalf;

b. any of Your Products which are incorporated into thestructure, machinery or controls;

of any Aircraft or Hovercraft.

2. Asbestos

for any claim or claims in respect of loss or lossesdirectly or indirectly arising out of, resulting from or inconsequence of, or in any way involving asbestos, or anymaterials containing asbestos in whatever form orquantity, notwithstanding any provision to the contrarywithin this Policy or any endorsement thereto.

3. Assault and battery

arising directly or indirectly out of or in any wayconnected with assault and/or battery committed by Youor at Your direction.

This exclusion will not apply when the assault and/orbattery is committed for the purpose of preventingPersonal Injury or Property Damage or eliminatingdanger.

4. Contractual liability

assumed under any contract or agreement.

This exclusion does not apply to:

a. liability that would have been implied by law in theabsence of such contract or agreement;

b. liability assumed by You under a warranty of fitnessor quality regarding Your Products;

c. those written contracts shown in the Schedule;

d. liability assumed under Incidental Contracts.

5. Defamation, libel and slander

arising directly or indirectly out of or in any wayconnected with, the publication or utterance of anylibellous, slanderous, defamatory or disparagingmaterial:

a. made prior to the commencement of the Period ofInsurance;

b. made at Your direction or with Your authority andwith knowledge of its falsity; or

c. related to advertising, broadcasting, telecasting orpublishing activities conducted by You or on Yourbehalf.

6. Defect in design

arising directly or indirectly out of or in any wayconnected with, any defective design or error inspecification or formula in any of Your Products.

Exclusion 6. shall not apply in respect of any design,specification or formula in any of Your Products, whichwas not provided for a fee.

7. Employer’s liability

a. for Personal Injury to any Worker, if You are requiredby law to insure or otherwise fund, whether throughself insurance, statutory fund or other statutoryscheme, all or part of any common law liability(whether limited or not) for such Personal Injury; or

b. imposed by:

(i) any Workers’ Compensation Law;

(ii) the provisions of any industrial award oragreement or determination or any contract ofemployment or workplace agreement wheresuch liability would not have been imposed inthe absence of such industrial award,agreement or determination;

(iii) any law relating to Employment Practices.

8. Erections, alterations and additions

arising directly or indirectly out of or in any wayconnected with, the construction, erection, alteration,

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demolition of and/or addition to Buildings by You or onYour behalf.

This exclusion will not apply to the alteration of oraddition to Buildings owned and/or occupied by Youwhere the cost of such alterations or additions does notexceed $500,000.

9. Faulty workmanship

for the costs or expenses incurred in performing,completing, correcting or improving any work or serviceundertaken or provided by You or on Your behalf.

10. Loss of use

for loss of the use of tangible property (not having beenphysically damaged or destroyed) arising directly orindirectly out of or in any way connected with:

a. a delay in or lack of performance by You or on Yourbehalf in relation to any contract or agreement; or

b. the failure of Your Products to meet the level ofperformance, quality, fitness or durability expresslyor impliedly warranted or represented by You.

This exclusion (10.b.) does not apply to the loss ofuse of other tangible property resulting from thesudden and accidental physical Damage to ordestruction of Your Products after such Productshave been put to use by any person or organisationother than You.

11. More specific policy

for which Indemnity is provided, or would have beenprovided but for any applicable deductible or Excess,under a more specific policy shown as such in theSchedule.

12. Participation

for Personal Injury to any person or Property Damage tothe property of any person arising directly or indirectlyout of or in any way connected with, the actualparticipation of such person in any sport exercise oractivity such as but not limited to aerobics, athletics,football, aquatic, aerial or equestrian activity.

The term “participation” as used in this exclusionincludes the participation, training or practice for,supervision or control of such activities.

This exclusion does not apply to Personal Injury orProperty Damage, caused by any fault or defect inequipment provided by You at any location ownedand/or occupied by You for the purpose of Your Business.

13. Penalties, liquidated damages, punitive,exemplary and/or aggravated damages

for fines or penalties imposed by law or liquidateddamages or punitive, exemplary and/or aggravated

damages and/or any additional damages resulting fromthe multiplication of compensatory damages.

14. Pollution


a. the actual, alleged or threatened discharge,dispersal, release or escape of Pollutants;

This exclusion (14.a.) will not apply to liability forPersonal Injury or Property Damage where suchdischarge, dispersal, release or escape is caused by asudden, identifiable, unintended and unexpectedhappening which takes place in its entirety at aspecific time and place;

b. testing, monitoring, clean-up, removal, containment,treatment, detoxifying or neutralising of Pollutantswhether or not any of the foregoing are or should beperformed by You or by others;

c. the actual, alleged or threatened discharge,dispersal, release or escape of Pollutants caused byany of Your Products being used or that have beendiscarded, dumped, abandoned or thrown away byothers; or

d. the actual, alleged or threatened discharge,dispersal, release or escape of Pollutants in theUnited States of America or Canada or in anycountry to which the laws of the United States ofAmerica or Canada apply.

15. Product defect

for Property Damage to Your Products if such PropertyDamage arises directly or indirectly out of or is in anyway connected with:

a. any defect in them or their harmful nature;

b. their unsuitability for the purpose for which theywere intended; or

c. their inherent vice or inefficiency or ineffectiveness.

16. Product liability

arising directly or indirectly out of or in any wayconnected with Your Products other than Stock in Trade.

17. Product recall

arising directly or indirectly out of or in any wayconnected with, the removal, withdrawal, recall,inspection, repair, reconditioning, replacement or loss ofuse of Your Products or any property of which suchProducts form a part if they are withdrawn from themarket or from use because of any known or suspecteddefect or deficiency in them.

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18. Professional liability

arising directly or indirectly out of or in any wayconnected with the provision by You or anyone on Yourbehalf, of professional advice or service or any error oromission connected therewith.

Provided that this exclusion 18. does not apply to:

a. rendering of or failure to render medical advice byMedical Persons employed by You to provide first aidand other medical services on Your Premises, otherthan where Your Business involves the provision ofprofessional medical services or advice (whichincludes dental and veterinary services and advice)and the provision or sale of medication or othermedical equipment, prosthetics, aids or devices ofany description; or

b. Personal Injury or Property Damage where suchprofessional advice is not given for a fee.

19. Property in physical or legal control

for Property Damage to:

a. property owned by or leased or rented to You;

b. property in Your physical or legal control.

Provided that this exclusion 19. will not apply to liabilityfor Property Damage to:

(i) buildings which are leased or rented to You;

(ii) buildings, including their contents, not owned,leased or rented to You but temporarily occupied byYou for the purpose of carrying out work inconnection with Your Business, but We will not payfor Property Damage to that part of the property onwhich You are or have been working which arisesout of such work;

(iii) Vehicles (not belonging to or used by You or on Yourbehalf) in Your physical or legal control where suchProperty Damage occurs while any such Vehicles arein a car park which is not owned or operated forreward by You as part of Your Business;

(iv) property belonging to visitors or Your employees; or

(v) other property in Your physical or legal control(except for that part of any property that isundergoing any process or is being worked uponwhere Property Damage arises out of such process orwork) for which You have not assumed anyresponsibility to obtain insurance.

Our liability under this proviso e. will be limited to$25,000 in the aggregate in respect of any one periodof insurance, unless a higher amount is shown inthe Schedule, and will be subject to the Excessshown in the Schedule.

20. Smoking

for any Personal Injury arising directly or indirectly out ofor in any way connected with, the inhalation or ingestionof or exposure to:

a. tobacco or tobacco smoke; or

b. any ingredient or additive present in any articles,items or goods which contain or include tobacco.

21. Technology, information and the internet

arising directly or indirectly out of or in any wayconnected with Your internet operations.

This exclusion does not apply to liability otherwisecovered by this Policy which would have arisenirrespective of Your internet operations.

Internet operations includes but is not limited to,the following:

a. use of electronic mail systems by You or Youremployees, including part-time and temporary staff,and others acting on Your behalf;

b. access through Your network to the world wide webor a public internet site by You or Your employees,including part-time and temporary staff, and othersacting on Your behalf;

c. access to Your intranet (meaning internal companyinformation and computing resources) which ismade available through the world wide web for Yourcustomers or others outside Your organisation; and

d. the operation and maintenance of Your website.

Nothing in this exclusion shall be construed to extendcoverage under this Section to any liability which wouldnot have been covered in the absence of this exclusion.

22. Treatment or dispensing


a. the treatment of humans or animals for any physicalor mental deficiency, injury or disease; or

b. the dispensing of drugs, medicines, pharmaceuticalsupplies, or artificial aids, Personal Injury or PropertyDamage arising from the treatment of thosehumans or animals or caused through thedispensing of drugs, medicines, pharmaceuticalsupplies, or artificial aids.

23. Vehicles

arising directly or indirectly out of or in any wayconnected with, the ownership, possession, operation oruse by You or on Your behalf of any Vehicle:

a. which is registered or is required under anylegislation to be registered;

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This exclusion 20.a. will not apply to:

(i) liability for Personal Injury or Property Damagearising beyond the limits of any carriageway orthoroughfare or caused by the loading orunloading of any Vehicle or trailer;

(ii) liability for Personal Injury and/or PropertyDamage arising from the use of any Vehicle as aTool of Trade;

b. where such liability is required by virtue of anylegislation to be insured under a policy of bodilyinjury insurance required by law.

24. Watercraft


a. the ownership, possession, operation or use by Youor on Your behalf; or

b. any of Your Products which are incorporated into thestructure, machinery or control;

of any Watercraft, the hull of which exceeds 8 metres inlength.

25. Welding and allied processes

arising directly or indirectly out of or in any wayconnected with, You or other people working on Yourbehalf not having strictly complied with the AustralianStandard 1674.1-1997 “Safety in welding and alliedprocesses – Fire precautions” as set out in the Standardor as amended when involved in welding, thermal oroxygen cutting or heating or other related heatproducing or spark producing operations.

Specific conditions applicable tothis Section1. Applicable law

Any phrase or word in this Section and Schedule will beinterpreted in accordance with the law of theCommonwealth of Australia.

2. Cross liability

Where You are comprised of more than one entity, theterm “You” will be considered as applying to each entityin the same manner as though a separate policy hadbeen issued to each entity, provided that Our Limit ofIndemnity and liability to make supplementarypayments will apply as though there were not separatepolicies issued to each entity.

3. Discharge of liabilities

We may at any time pay to You or on Your behalf inrespect of all claims against You:

a. the amount of the Limit of Indemnity (afterdeduction of any sum or sums already paid by Us);or

b. any lesser sum for which the claim or claims may besettled.

Upon such payment We will relinquish conduct orcontrol of the defence of all claims against You and beunder no further liability under this Policy in connectionwith such claim or claims.

Provided that We will pay for costs, charges andexpenses recoverable from You in respect of the periodprior to the date of such payment (whether or not this ispursuant to an order made subsequently) or incurred byUs or by You with Our written consent prior to the date ofsuch payment.

4. Premium adjustment

If the premium for this Policy has been calculated on anyestimates given by You, You must keep accurate recordscontaining all relevant particulars and at any reasonabletime allow Us to inspect such records.

5. Reasonable care and maintenance

You must:

a. take reasonable precautions to prevent themanufacture, sale or supply of defective Products;

b. at Your expense, take reasonable action to trace,recall or modify any Products containing any defector deficiency which defect or deficiency You haveknowledge of or have reason to suspect.

If You do not meet the above condition, We may cancelthe Policy and or reduce or refuse to pay a claim.

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Section Eight –Employee Dishonesty(Fidelity Guarantee)The coverWhere this Section is shown as insured on the Schedule,We will pay You in accordance with the basis ofsettlement for any loss of Property Insured (includingMoney) occasioned by or arising out of the happening ofa Defined Event, provided that:

a. the loss happens during the Period of Insurance;

b. the loss is discovered not later than 12 months afterthe expiry of the Period of Insurance or not laterthan 12 months after the termination of theemployment of the Employee, whichever occurs first;

c. the Sum Insured for any one Employee shown in theSchedule under this Section will be reduced by thetotal of any claims payable by Us for losses resultingfrom the fraudulent or dishonest conduct of thatEmployee in any period before the current Period ofInsurance;

d. We will not be liable for more than the Sum Insuredfor all Employees shown in the Schedule in respectof all losses suffered during the Period of Insurance.

Definition applicable to this Section“Employee” means any person who is employed by Youin the Business who You compensate by salary, wages,commission or other benefit and have the right at alltimes to govern, control and direct in the performance oftheir work. An Employee does not include:

a. a partner, director or trustee unless they are actingin their capacity as an employee; or

b. any broker, factor, consignee or contractor.

Defined Event applicable to this SectionFraudulent or dishonest conduct of an Employee(whether acting alone or in collusion with others) fortheir own gain or for the financial benefit of any otherperson or organisation intended by the Employee toreceive a benefit.


1. for Property Insured other than Money, We will atOur option:

a. pay to You the amount of the loss of PropertyInsured; or

b. reinstate or replace that property, but in sodoing We will not be bound to reinstate orreplace exactly and completely, but only ascircumstances permit and in a reasonablysufficient manner.

2. for Money, We will pay to You the amount of Yourloss.

However:

1a. We will not pay more than the amount shown in theSchedule for any one Employee and for any loss thatarises out of the act or acts of any one Employee orfor which that Employee is concerned or implicatedby acting in concert with any other person;

b. for all losses suffered during the Period of Insurance,We will not pay in total more than the amountshown in the Schedule for all Employees.

2a. for Property Insured other than Money, afterpayment for or replacement of any lost property,that property, if recovered will belong to Us subjectto Your right to reclaim it upon repayment of anyamount paid by Us;

b. for Money, any recovery made either by You or by Usafter settlement of the claim will first be applied toany uninsured loss borne by You.

ExcessWe will not pay the amount of the Excess shown in theSchedule for this Section.

Additional benefits applicable tothis SectionConsequent upon a claim being admitted, We will also:

1. Retroactive cover

cover any loss that is within the time limitations, if thisSection of the Policy is substituted for any prior policy ofEmployee Dishonesty insurance carried by You that isterminated, cancelled or allowed to expire at the time ofsubstitution, provided that:

a. the loss would have been recoverable by You underthe prior policy except for the fact that the timewithin which to discover any loss had expired;

b. the cover We provide will fall within, and will not bein addition to, the Sum Insured shown in theSchedule;

c. the loss would have been covered under this Sectionhad this Section with its terms, limitations andconditions at the time of the substitution been inforce when the acts or defaults causing the loss werecommitted;

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d. recovery under this Section for the loss will notexceed the amount that would:

(i) be recoverable under this Section had those actsor defaults been committed immediately beforediscovery; or

(ii) have been recoverable under the prior policyhad it continued in force until the discovery ofthe loss;

whichever is the lesser;

e. We will not be liable for any loss arising from any actof fraud or dishonesty committed more than 12months before the commencement of this Section ofthe Policy.

2. Unidentifiable Employee

pay for any loss You suffer, where You are unable toidentify the specific Employee whose conduct has givenrise to the loss, provided that:

a. You have insured for the conduct of all Employees;and

b. You can prove to Our reasonable satisfaction thatthe loss was caused by the fraud or dishonestconduct of one or more Employees.

3. Automatic reinstatement

reinstate the Sum Insured to the original amountimmediately preceding such claim subject to thepayment of any extra premium We may require,provided that We will not be liable more than once forthe Sum Insured stated in the Schedule for any loss thatarises out of the act or acts of any one Employee or forwhich that Employee is concerned or implicated byacting in concert with any other person.


1. any loss or part of a loss the proof or quantificationof which depends upon any shortage revealed by orinconsistency in any accounting records, aninventory computation or enumeration, acomparison of inventory records with an actualphysical count, or a profit and loss computation;

2. any loss arising from the conduct of an Employeeafter You have knowledge or information of any prioract of fraud or dishonesty by that Employee;

3. any loss arising from a failure to make payment of ordefault under any loan or credit transactionobtained from or made by You whether authorisedor unauthorised unless there is fraud or dishonestyby an Employee;

4. any loss arising out of a change or variation in themethod of conducting the Business that results ininformation furnished to Us in any Proposal orapplication for this insurance or any supportingdocumentation being different in some materialdegree;

5. any consequential loss (for example loss of use ofthe Property Insured) or other loss of any kind notspecifically referred to in this Section.

6. a. total or partial destruction, distortion, erasure,corruption, alteration, misinterpretation ormisappropriation of Electronic Data,

b. error in creating, amending, entering, deletingor using Electronic Data, or

c. total or partial inability or failure to receive,send, access or use Electronic Data for any timeor at all,

from any cause whatsoever, regardless of any othercontributing cause or event whenever it may occur.

Electronic Data means facts, concepts andinformation converted to a form useable forcommunications, display, distribution,interpretation, or processing by electronic orelectromechanical data processing or electronicallycontrolled equipment and includes programs,software and other coded instructions for suchequipment.

Specific conditions applicable tothis SectionIf You do not meet the following conditions, We mayreduce or refuse to pay a claim.

1. Checks and precautions

You must perform all checks or precautions described byYou in any Proposal for this insurance or anydocumentation supporting the Proposal;

2. Change in Business arrangements

You must inform Us immediately in writing and obtainOur written consent if there has been any change in:

a. the method of conducting the Business to make thefacts differ in some material degree from thosedescribed in the Proposal for this insurance or anysupporting documentation;

b. the ownership of the Business without Our priorwritten consent.

3. Claims against Employee

In the event of any loss being discovered You must, to theextent allowed by law, retain all salary, commission

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moneys or assets that are the property of the Employeein respect of whose conduct a claim is made and whichare or may come within Your control and You mustapply them towards making good the amount of the loss.

4. Dishonest Employee

You must give to Us written notice immediately upon thediscovery of any conduct that is fraudulent or dishonestby any Employee or of reasonable cause for suspicion asto any such conduct or of any lack of integrity by anEmployee whether giving rise to a claim or not. We willnot pay for any loss occurring after the date of discoveryof such conduct.

5. Counter-signatories for financial transactions

All cheques and other financial transactions in excess of$1,000 must be counter-signed by Your authorised officerwho must, independently of the Employee(s) drawingthe cheque or handling the financial transaction, verifythe efficacy of the supporting documentation for thecheque or financial transaction.

It is a further condition of cover provided in this Sectionthat arrangements be in place with Your financialservice provider to not honour cheques or financialtransactions in excess of $1,000 that have not beencounter-signed by Your authorised officer.

Section Nine –Machinery BreakdownThe coverWhere this Section is shown as insured on the Schedule,We will pay You in accordance with the basis ofsettlement for a Defined Event occurring during thePeriod of Insurance to the Property Insured as defined inthis Section.

Definitions applicable to this Section“Additional Machinery” means any machinery (other thanof a type excluded within the Property Insureddefinition) that is of a similar kind to the PropertyInsured which is insured under this Policy and isinstalled or brought into use at the Situation after thecommencement of the Period of Insurance.

“Blanket Machinery” means all the machinery at theSituation other than Specified Machinery and machineryitems excluded under the definition of Property Insuredbelow up to the amount stated as the limit for any oneloss stated in the Schedule.

“Breakdown” means unforeseen and sudden Damagefrom any cause not excluded which necessitates itsrepair or replacement before the Property Insured can beused again.

“Property Insured” means Specified Machinery and/orBlanket Machinery comprising of:

a. electrical, electronic and mechanical machineryincluding their interconnecting cabling and piping,and/or

b. boilers and pressure vessels,

but excluding:

• any item exceeding $100,000 new replacementvalue,

• any item of machinery that is powered by a motor ofmore than 4 kilowatt/5.5 horse power capacityunless expressly stated otherwise in the Schedule,

• research, electro-medical and diagnostic equipment,

• refrigeration or display cabinet housing,

• submersible pumps and bore pumps of more than2.2 kilowatt/3 horse power capacity, turbine pumps,or helical rotor pumps unless specifically shown asinsured on the Schedule,

• vehicles or mobile or portable machinery,

• electronic equipment (including television receivers,video or DVD players and the like) other than

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electronic scales, electronic cash registers, check-outscanners, or control equipment used exclusively andsolely with an insured item,

• domestic items in residential quarters,

• vending or amusement machines or any coin-operated machine,

• lawn maintenance equipment,

• lifts and escalators,

• hand dryers,

• portable hand-held tools other than vacuumcleaners,

• reticulating electrical wiring, liquid or gas piping.

“Specified Machinery” means machinery shown in the

Schedule as Specified Machinery.

Defined Events applicable tothis Section1. Breakdown.

2. Breakdown of Additional Machinery at the Situationfor 90 days after the earlier of the date it is installedor the date it is first used. The Additional Machinerymust have worked satisfactorily for 8 hours and havebeen handed over after commissioning.

Where the Optional Benefit ‘Deterioration of stock’ hasbeen selected, the Defined Event shown under thatOptional Benefit will apply.


1. where Damage to Property Insured can be repaired,the reasonable costs of:

a. restoring the Damaged item to its formerworking order;

b. dismantling and re-erecting and removal ofDebris necessary to complete the repairs;

c. ordinary freight costs to and from a repair shop;

d. any customs duties;

e. charges for overtime and work on publicholidays limited to 25% of the Sum Insured forthe item.

If You complete the repairs Yourself We will pay thereasonable cost of materials and wages as well as areasonable allowance to cover overheads.

2. where Damage to Property Insured is not repaired:

a. for Property Insured that could not be repaired,the actual value of the Property Insuredimmediately before the Damage;

b. for Property Insured that could be repaired buthas been replaced, the estimated cost thatwould have been incurred for necessary repairsto return the Damaged Property Insured to itsformer state of serviceability.

We will not pay more than the Sum Insured shown in theSchedule for:

a. each item of Specified Machinery,

b. the limit for any one loss for any one item forBlanket Machinery,

for any one event.


Where the Optional Benefit is selected, a separate Excessas shown in the Schedule will apply to that OptionalBenefit.

Additional benefits applicable tothis SectionWhen We have agreed to pay a claim following theoccurrence of a Defined Event, We will also pay:

1. Hire of temporary machinery andexpediting costs

the following reasonable and necessary costs of hiringtemporary machinery and expediting the repair of theDamage. The cost of:

(i) hiring the temporary machinery for use at theSituation;

(ii) effecting temporary repairs to the Damaged PropertyInsured;

(iii) overtime or air freight within Australia (but not on aspecifically chartered aircraft), necessary to expeditepermanent repairs to the Damaged Property Insured;

(iv) consultants’ fees in connection with the hire andrepair of the Damaged Property Insured if You haveobtained Our approval.

2. Insulating oil and refrigerant gas or liquid

the reasonable cost of cleaning, storing, recycling andreplacing:

a. insulating oil in transformers, capacitors or switchgear; and

b. refrigerant gas or liquid in air-conditioning orrefrigeration units.

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The most amount We will pay for these additionalbenefits 1. and 2. will be the lesser of $2,000 or 50% of thenormal cost of the repair of the Damaged item.

3. Additional Machinery

We will cover Additional Machinery acquired during thePeriod of Insurance, subject to the following:

a. Our limit of liability under this additional benefitwill not exceed:

(i) where the Property Insured is “SpecifiedMachinery” the lesser of:

(a) 25% of the total Sum Insured stated in theSchedule for Specified Machinery; or

(b) $10,000.

(ii) where the Property Insured is “BlanketMachinery” the limit any one loss stated in theSchedule as the sum insured.

b. You must give Us notice in writing of the installationor operation of Additional Machinery within 90 daysafter it occurs;

c. You must pay Us any additional premium which Wemay require, calculated from the date of installationor initial operation;

d. within three (3) business days of receiving noticefrom You, We may give You seven (7) days noticethat We will not insure the Additional Machinery.Upon the expiry of that notice the AdditionalMachinery will no longer be covered.

Optional Benefit applicable tothis SectionThe following Optional Benefit is operative only when itis included in the Schedule as covered.

We will also Indemnify You for:

1. Deterioration of stock

deterioration of perishable stock, whether Your own orthat for which You are responsible, caused by a DefinedEvent.

Defined Event applicable to this Optional Benefit

Deterioration resulting from a change in temperaturedue to:

a. a Breakdown in the refrigeration machinery forwhich a claim has been admitted under this Section;

b. the accidental escape of refrigerant liquid or gasfrom the refrigeration machinery or from pipesforming part of it;

c. the operation of fuses or overload devices protectingthe machinery;

d. failure of the public power supply to the point ofattachment to the Building resulting from accidentalDamage outside the Situation.

Sum Insured applicable to this Optional Benefit

We will not pay more than the Sum Insured shown in theSchedule for this Optional Benefit.

Specific exclusions applicable to this Optional Benefit

We will not pay for:

a. Damage caused by:

(i) shrinkage, inherent defects or diseases, naturaldeterioration or natural putrefaction;

(ii) improper storage or stowage, collapse ofpacking material, deviations from designers’specifications or instructions;

(iii) any wilful act by You;

b. penalties for delay or detention.


1. loss or Damage directly or indirectly arising out of orin any way connected with fire, extinguishing a fire,demolition following a fire, smoke, soot, lightning,chemical explosion, impact of vehicles, aircraft orwatercraft, earthquake, subterranean fire, volcaniceruption, land slip, subsidence, riot, strike, lockout,civil commotion, malicious Damage, wind andwater, Flood, inundation, water discharged orleaking from any pipe or water system, theft orattempted theft;

2. loss of or Damage to belts, ropes, wires, chains,rubber tyres, dies or exchangeable tools, engravedcylinders, objects made of glass or porcelain,ceramics, refractory linings, felt sieves or fabrics,jointings or packings (including lubrication, oil, fuel,catalysts or refrigerants) unless specially shown asinsured in the Schedule;

3. wasting or wearing away or wearing out of any partof an insured item caused by or naturally resultingfrom ordinary use or working, gradual deteriorationincluding erosion, rust, corrosion, boilers, scale oroxidation (due to normal atmospheric conditions orotherwise), Damage due to pitting, scratching ofpainted or polished surfaces, adjustment orcleaning;

4. the cost of converting refrigeration and/or air-conditioning units from the use of C.F.C.(chlorofluorocarbon) refrigerant gas to any othertype of refrigerant gas;

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5. any costs associated with submersible pumps orwell casings unless specifically shown in theSchedule;

6. the cost of any:

a. alterations, additions, improvements oroverhauls;

b. temporary repairs unless those temporaryrepairs form part of the final repairs and do notincrease the final repair costs;

7. Damage to Property Insured for which successfulinitial commissioning has not been completed;

8. loss or Damage due to any act of the power supplier,including withholding, restricting or load sheddingthe supply of electricity;

9. loss or Damage arising:

a. out of the machinery being subjected to testsinvolving abnormal stresses or arising out ofmachinery being intentionally overloaded; or

b. prior to successful initial commissioning orduring test or experimentation;

10. loss or Damage due to faults or defects known toYou;

11. loss or Damage due to failure to comply withstatutory requirements relating to safeguarding oroperation of the machinery or electronic equipment;

12. the costs for repairing or replacing if themanufacturer, supplier, agent or any other person isresponsible under the terms of a maintenanceagreement;

13. consequential loss of any kind (for example loss ofuse of the Property Insured) or any other type of lossnot specifically covered in this Section;

14. loss of or Damage to computers and/or ancillaryequipment including, but not limited to, electronicdata processors, printers, modems, servers, discdrives, visual display units, telecommunicationequipment or software.


1. Inspection

Our representatives will have the right to inspect andexamine the Property Insured at any reasonable time.

2. Undeclared Property Insured

Where the cover is for Blanket Machinery, the number ofmachine items declared either:

a. in the Proposal; or

b. in a subsequent written declaration to Us;

must be the actual total of the Property Insured itemspresent at the Situation at the time of the declaration. Ifat the time of the loss or Damage it is found that thedeclared total number of Property Insured items is lessthan the total number present at the time of thedeclaration, the amount payable by Us will be reduced inproportion to the amount of the underdeclaration.

3. Claims procedure

Once You have advised Us that You intend to make aclaim, You may commence necessary repairs to mitigateYour loss provided You keep any Damaged or replacedparts for Our inspection.

We will not be liable to make any payment under thisSection unless You have produced to Our reasonablesatisfaction all accounts, estimates, invoices, receiptsand other documentation showing that repairs havebeen effected or replacement has taken place, as thecase may be.

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Section Ten –Computer/ElectronicEquipmentThe coverWhere this Section is shown as insured on the Schedule,We will pay You in accordance with the basis ofsettlement if any of the Property Insured shown in theSchedule under this Section is Damaged at the Premises(unless otherwise stated in the Schedule) by theoccurrence of a Defined Event during the Period ofInsurance.

Definitions applicable to this Section“Additional Computer/Electronic Equipment” means anycomputer/electronic equipment that is of a similar kindto the Property Insured which is insured under thisPolicy and is installed or brought into use at theSituation after the commencement of the Period ofInsurance.

“Breakdown” means a sudden and unforeseenmechanical, electrical or electronic malfunction orfailure which becomes apparent at the time it occursand requires immediate repair or replacement to enablenormal operation to continue.

“Computer Virus” means an executable program orcomputer code segment that is self-replicating, requiresa host program or executable segment in which it can becontained, and which destroys or alters the hostprogram or other computer code or data, causingundesired program or computer system operation.

“Property Insured” means the computer and/or electronicequipment specified in the Schedule.

Defined Event applicable to this SectionBreakdown of computer and/or electronic equipment.

Basis of settlement applicable tothis SectionWhen the Property Insured is Damaged, the followingbasis of settlement will apply:

1. Where an equivalent make and model or all partsnecessary for repairs are obtainable from themanufacturer or its agent at listed prices and theProperty Insured is:

a. Damaged beyond repair, We will replace theProperty Insured with new or equivalent makesand models;

b. Damaged, but the Damage is repairable, We willrestore the Damaged portion to a conditionsubstantially the same as but not better or moreextensive than its condition when new, providedthat the work is carried out within a reasonableperiod.

2. Where an equivalent make and model or all partsnecessary for repairs are not obtainable from themanufacturer or its agent at listed prices and theProperty Insured is:

a. Damaged beyond repair, We will replace theProperty Insured with the nearest equivalentreplacement based on make, model andconfiguration of Your existing systems andprograms;

b. Damaged, but the Damage would have beenrepairable had all parts necessary for repairsbeen obtainable from the manufacturer or itsagent at listed prices, We will pay an amountequal to the cost of repair to the nearestequivalent of current manufacture had all theparts been obtainable from the manufacturer orits agent.

We will not pay more than the Sum Insured stated in theSchedule for any computer or item of electronicequipment.


Additional benefit applicable tothis SectionAdditional Computer/Electronic Equipment

We will cover Additional Computer/ElectronicEquipment acquired during the Period of Insurance,subject to the following:

a. Our limit of liability under this additional benefitwill not exceed the lesser of:

(i) 25% of the total Sum Insured stated in theSchedule for Specified Computer/ElectronicEquipment;

(ii) $10,000.

b. You must give Us notice in writing of the installationor operation of Additional Computer/ElectronicEquipment within 90 days after it occurs;

c. You must pay Us any additional premium which Wemay require, calculated from the date of installationor initial operation;

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d. within three (3) business days of receiving noticefrom You, We may give You seven (7) days noticethat We will not insure the AdditionalComputer/Electronic Equipment. Upon the expiry ofthat notice the Additional Computer/ElectronicEquipment will no longer be covered.

Optional Benefits applicable tothis SectionThe following Optional Benefits are operative only whenincluded as covered in the Schedule:

Following a claim being admitted for Damage under thisSection, We will also pay for:

1. Restoration of data

the costs incurred for the purpose of restoring data lostas a result of Damage covered under this Section to acondition equivalent to that existing prior to theDamage, including the cost of overtime necessarilyincurred, provided that:

a. the data is backed up daily and precautions existingor agreed to for its safeguarding and retention aremaintained and observed at all times;

b. except as provided in Optional Benefit 1.d. below, Wewill not pay more than the Sum Insured shown inthe Schedule for this Optional Benefit;

c. We will not pay for any loss or Damage to recordscaused by access to Your computer systems andrecords by people not authorised by You;

d. We will pay no more than $1,000 or the Sum Insuredshown in the Schedule for this Optional Benefit,whichever is the lesser, for any loss or Damage toYour records, data, or software caused by computervirus, being an executable program or computercode segment that is self-replicating, requires a hostprogram or executable disc segment in which it canbe contained, and which destroys or alters the hostprogram or other computer code or data, causingundesired program or computer system operation.

2. Increased cost of working

the increased cost of working incurred during a periodnot exceeding three (3) months from the date thatincreased working costs are first incurred, followinginterruption to the normal operation of an insured itemfor which We have agreed to meet a claim under thisSection, provided that:

a. the cost is proved to have been necessarily andreasonably incurred during the period, over andabove the normal expenses You would have incurredduring the period in respect of the operation of theitem;

b. We will not pay for more than the costs actuallyincurred by You; and

c. We will not pay more than the Sum Insured shownin the Schedule for this Optional Benefit.

Additional benefit applicable to this Optional Benefit

To the extent that the Sum Insured is not otherwiseexhausted, We will reimburse You for fees payable byYou to external accountants and other professionaladvisers that are reasonably and necessarily incurred tosupport a valid claim. The maximum amount We willpay will be $10,000 or 10% of any claim paid, whichever isthe lesser.

This additional benefit will not apply to professional feesincurred by You directly or indirectly in respect of publicloss assessors.

The cover provided by this additional benefit to thisOptional Benefit is in addition to 2. Claims preparationexpenses, under “Claims procedure and conditions”.

Excess applicable to this Optional Benefit

A two (2) day Excess applies to this Optional Benefitunless stated otherwise in the Schedule. The amount ofthe Excess will be two (2) days multiplied by the averagedaily increased cost for the period of interruption.

Specific exclusions applicable to this Optional Benefit

We will not pay for:

1. any expenses incurred during:

a. periods of interruption due to alterations,improvements or additions to The insureditems;

b. periods of interruption due to the need forcleansing, adjustment, inspection, maintenanceor overhaul.

2. more than four (4) weeks extension of interruptiondue to delays in the repair or restoration of items offoreign manufacture where such delays result fromone or more of the following:

a. restrictions, measures or regulations imposedby any government authority;

b. the time required to obtain replacementcomponent parts or complete items overseas;

c. the time required to transport parts or completeitems between the Situation and the overseasplace of repair or restoration;

d. the time required to engage and transportoverseas specialists or consultants to attendlocal repairs.

3. any increase in cost of working occurring as a resultof loss or Damage to Your records, data, or software

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caused by computer virus, being an executableprogram or computer code segment that is self-replicating, requires a host program or executabledisc segment in which it can be contained, andwhich destroys or alters the host program or othercomputer code or data, causing undesired programor computer system operation.

Specific condition applicable to this Optional Benefit

We will not be liable to make any payments under thisOptional Benefit unless You have produced to Ourreasonable satisfaction all accounts, invoices, receiptsand other documentation substantiating that theexpenditure has been incurred.


1. Breakdown caused by atmospheric moisture ortemperature unless directly resulting from Damageto or malfunction of air-conditioning equipment.

2. the cost of:

a. replacement of Damaged, worn or spentbatteries, belts, chains, tapes, ribbons, filters,fuses, electric heating elements or electricalcontacts;

b. replacement of component parts worn throughnormal use or operation, unless Damagedbecause of loss or Damage insured by the Policy;

c. preventative maintenance work;

d. alterations, additions, improvements oroverhauls whether carried out in the course ofindemnifiable repairs or as a separateoperation;

e. replacement or restoration following gradualdeterioration (including rust, corrosion, erosion,oxidation or scale formation);

f. temporary repairs unless such repairsconstitute part of the final repairs and do notincrease the total repair costs.

3. Breakdown occurring to an insured item during anyperiod when it is out of Your possession on hire,rental, lease or loan.

4. Breakdown which is covered under a service orwarranty agreement except where the amount paidunder such an agreement is less than the total costof repair. In this event We will, subject to anyexclusion and Excess which may apply, indemnifyYou for the difference.

5. Breakdown due to access by people not authorisedby You to Your computer systems and records.

6. loss or Damage arising:

a. out of the machinery being subjected to testsinvolving abnormal stresses or arising out ofmachinery being intentionally overloaded; or

b. prior to successful initial commissioning orduring test or experimentation.

7. loss or Damage due to faults or defects known toYou.

8. loss or Damage due to failure to comply withstatutory requirements relating to safeguarding oroperation of the machinery or electronic equipment.

9. the costs for repairing or replacing if themanufacturer, supplier, agent or any other person isresponsible under the terms of a maintenanceagreement.

10. consequential loss of any kind (for example loss ofuse of the Property Insured) or any other type of lossnot specifically covered in this Section.


1. Maintained and serviced

All Property Insured shown in the Schedule which isinsured under this Section must be maintained andserviced in accordance with the manufacturer’sspecifications. We will not be liable if You do not complywith this condition.

2. Underinsurance

If, at the time of the Damage, an item of Property Insuredbe of greater value than the Sum Insured (also takingprice changes into consideration), then You shall bedeemed Your own insurer for the difference and shallbear a proportionate share of the loss accordingly.

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Section Eleven – TaxAuditThe coverWhere this Section is shown as insured on the Schedule,We will insure You for the Professional Fees reasonablyand necessarily incurred within the Commonwealth ofAustralia in connection with an Audit whichcommences during the Period of Insurance.

We will not pay You more than the amount shown in theSchedule during any one period of insurance.

Definitions applicable to this Section“Audit” means the investigation of Your Business,financial or tax affairs by:

• the Australian Tax Office (ATO) following lodgementof Your tax returns; or

• the responsible Commonwealth, State or TerritoryDepartment, Body or Agency following lodgement ofYour returns and the making of an assessment(including a self-assessed liability) or relevantdocument in regard to Your obligation to pay anamount under the Commonwealth, State or Territorylegislation, in relation to:

1. income tax;

2. fringe benefits tax;

3. capital gains tax;

4. wholesale and sales tax;

5. payroll tax;

6. goods & services tax; or

7. superannuation contributions tax.

For the purpose of this Section, the Audit commences atthe time You first receive notice that the Auditorproposes to conduct an Audit, and is completed when:

a. the Auditor has given written notice to You tothat effect,

b. the Auditor notifies You that it has madefindings in connection to an Audit and notifiedYou of those findings and/or the actions theAuditor proposes to take in connection withthose findings, or

c. when the Auditor has issued an assessment oramended assessment as to Your liability to payan amount under any relevant legislation.

“Auditor” is an officer authorized under Commonwealth,State or Territory legislation to conduct Audits oftaxation or financial affairs.

“Professional Fees” means:

1. fees paid to registered tax agents, financial advisers,company auditors, accountants and solicitors whoare not Your employees, for the preparation ofevidence to be submitted to the Auditor;

2. fees charged to You for preparation of evidence byYour financial service providers;

3. overtime paid by You to Your employees to preparefor or represent You in any Audit;

4. travelling and accommodation expenses incurred byYou or Your employees in order to attend an Audit.

ExcessYou will bear as an uninsured contribution, 10% of allProfessional Fees incurred with a minimum contributionof $500 in respect of each and every claim under thisSection. All payments of Professional Fees made by Us insettlement of a claim under this Section will be exclusiveof Your contribution directly to the supplier(s) of theservice for which Professional Fees are payable.

Specific exclusions applicable tothis SectionWe will not pay:

1. for any legal liability, court costs, fines, penalties,tax, penalty tax or interest;

2. in relation to routine enquiries or enquiries from anAuditor which are not identified as being eitherpreliminary to or relating to an Audit beingconducted by an Auditor;

3. for Professional Fees incurred:

a. after the Audit has been completed,

b. due to Your improper, unwarranted orunjustified refusal or failure to comply with anylawful request for the production of documentsor the supply of information. Refusal or failureto comply will not be deemed to be improper,unwarranted or unjustified if You refuse or failto comply upon the written advice of Youraccountant or solicitor,

c. from Audits under customs legislation,

d. from Audits which You were notified of or knewof prior to the Period of Insurance,

e. from Audits of income received or earned, orwhere the source of income is, outside theCommonwealth of Australia or where theservice giving rise to the claim are performed bypeople or entities ordinarily resident outside theCommonwealth of Australia,

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f. from any fraudulent act or omission committedby You or on Your behalf or by Youremployee(s),

g. which are ordinarily associated with themaintenance and upkeep of Your Businessaccounts, returns, taxation and financialrecords and the preparation prior to lodgementof Your accounts, returns, taxation and financialrecords as required by any relevant legislation,

h. incurred more than twelve (12) months after thecommencement of the Audit, unless You canshow that completion of the Audit has beendelayed as a result of the conduct of the Auditor;

4. if the return in relation to which the Audit isproposed to be conducted was not reviewed by anaccountant prior to dispatch;

5. if You have not maintained all records that You arerequired to maintain or should or would maintain inthe ordinary course of Your Business.


1. Errors

If You or any person acting on Your behalf becomesaware of any error in any return of income or otherdocuments supplied to a Commonwealth, State orTerritory Commissioner of Taxation, You must notify theCommissioner of Taxation without delay.

2. Tax returns

You must submit all returns and documents within thetime limits prescribed by all relevant statutes orregulations or within any extensions of time as lawfullygranted by a Commissioner of Taxation.

3. Income disclosure

You must make full and complete disclosure of allincome (including capital gains), turnover and expensesrequired by any tax legislation. If the final assessment ofYour taxable income for the period being audited ismore than 20% higher than the taxable income whichYou originally declare, We will not pay any of Your claim.

4. Claims

If You have a claim under this Section You agree to:

a. keep Us fully informed of all material matters inrelation to Your claim;

b. send Us copies of all correspondence in relation toYour claim within five (5) working days of receivingthem;

c. instruct Your accountants and solicitors to provideUs with all relevant documents and information inrelation to Your claim; and

d. permit Us, when necessary, to instruct Youraccountants and solicitors in matters relating toYour claim and for the cost of these instructions toform part of Your claim. This does not mean We willtake over or represent You in the Audit orinvestigation.

We or Our duly appointed agent may conduct Our owninvestigation to any matter which is or may be thesubject of a claim under this Policy.

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For all enquiries please call Allianz on 13 1000 or talk to your broker

allianz.com.au/business

Allianz Australia Insurance LimitedAFS Licence No. 234708ABN 15 000 122 850 2 Market Street Sydney NSW 2000 PO

L114

BA /F

I 01/

07

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Allianz Office Pack PDS (Product Disclosure Statement / Policy Wording)

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Transcript of Allianz Office Pack PDS (Product Disclosure Statement / Policy Wording)