policy - home | st giles insurance & finance · company: tokio marine europe insurance limited...

A spirit of trust

Policy

TMEI - PROPERTY OWNERS WORDING Page 1 of 84

Version 2 [1_10_08]

Introduction: Thank you for choosing the “Property Owners Insurance Policy” for your Business insurance requirement which is underwritten by Tokio Marine Europe Insurance Limited (the Company) This Policy is a legal contract between the Company and you (the Policyholder). It is important that this document is checked to make sure that it meets your requirements and that all the details stated in the Schedule and Specifications (which are attached and form an integral part of the Policy wording) are correct and reflects the covers requested. The Policyholder or the Policyholder’s insurance advisor must notify the Company as soon as is reasonably practicable 1 if there is a discrepancy omission or if the Policyholder’s insurance requirements change 2 of any fact(s) or change(s) that the Company would take into account in the assessment or

acceptance of this insurance as failure to disclose all relevant fact(s) or change(s) may invalidate the Policy or result in the Policy not operating fully.

The Policyholder should comply with all procedures stated in the Policy as failure to do so may be a bar to any claim.

Property Owners Policy (Combined Wording)


Version 2 [1_10_08]


Version 2 [1_10_08]

Policy content Page No.s Schedule --------------------------------------------------------------------------------------see attached Specifications --------------------------------------------------------------------------------see attached Introduction------------------------------------------------------------------------------------------ 1 Policy content--------------------------------------------------------------------------------------- 3 Complaints procedure ---------------------------------------------------------------------------- 5 Data Protection Notice --------------------------------------------------------------------------- 7 Policy contract -------------------------------------------------------------------------------------- 9 General: Definitions --------------------------------------------------------------------------------------- 11 - 13 Claims Conditions ----------------------------------------------------------------------------- 15 - 16 Conditions --------------------------------------------------------------------------------------- 17 - 19 Exclusions --------------------------------------------------------------------------------------- 20 – 22 Sections: Property Damage “All Risks”---------------------------------------------------------------- 23 - 44 Business Interruption “All Risks” ----------------------------------------------------------- 45 - 59 Employers’ Liability---------------------------------------------------------------------------- 60 - 65 Property Owners’ Liability ------------------------------------------------------------------- 67 - 75 Loss of Book Debts --------------------------------------------------------------------------- 77 - 79 Terrorism----------------------------------------------------------------------------------------- 81 - 84


Version 2 [1_10_08]


Version 2 [1_10_08]

Complaints procedure: The Company is committed to providing the Policyholder with the very highest level of service at all times. However if the Policyholder feels that the Company’s service has fallen short of their expectation the Policyholder may contact the Company at any time with their complaint. The first point of contact should be either the Policyholder’s insurance advisor who arranged the Policy at their address or the Company at the contact details given below: Company: Tokio Marine Europe Insurance Limited Address: 150 Leadenhall Street, London EC3V 4TE Telephone: 020 7283 8844 If the Policyholder’s complaint cannot be immediately resolved satisfactorily the Company will acknowledge the complaint in writing within five working days and request the Policyholder to submit full details of the complaint in writing. The Company will respond within twenty working days of receipt. If the matter cannot be satisfactorily resolved within in this time the Company will provide a written explanation of why and indicate when the Company will respond further. If the Policyholder is still not happy with the response or with any aspect of the procedure the Policyholder may write to the Company Secretary. Where the Policyholder is unsatisfied with the Company’s response to resolve the complaint and the Policyholder’s annual turnover is less than GBP1,000,000 then the Policyholder has the right to refer the complaint to the Financial Ombudsman Service at the address below: Address: South Quay Plaza, 183 Marsh Wall, London E14 9SR Telephone: 0845 080 1800


Version 2 [1_10_08]


Version 2 [1_10_08]

Data Protection Notice Tokio Marine Europe Insurance Limited (the Company) is part of the Tokio Marine Holdings Inc. The Company and other group companies will use information given together with other information for the administration of this Policy, the handling of claims and the provision of customer services. The information may also be disclosed to the Company’s service providers and agents for these purposes. It may also be disclosed to the Policyholder’s Insurance Advisor, where appointed. The Insured has a right to request a copy of the information (for which the Company may charge a small fee) and to correct any inaccuracies. To ensure instructions are followed correctly and to improve the Company’s service through staff training, telephone calls may be recorded.


Version 2 [1_10_08]


Version 2 [1_10_08]

Policy contract: In consideration of the Policyholder (named in the Schedule) having paid or agreed to pay the premium stated in the Schedule the Company agrees to indemnify the Policyholder or otherwise to pay the benefits and compensations stated to the extent and in the manner specified in this Policy provided that 1 the Policyholder shall be subject to all the terms, Conditions limitations and/or

Exclusions contained in this Policy contract or by additional endorsements 2 the Company’s liability shall not exceed the Sums insured or the Limits of liability

expressed herein 3 the Schedule, Specifications, General Claims Conditions, General Conditions,

General Definitions, General Exclusions, and Active covers shall be read together as part of one contract and any word or expression to which a specific meaning has been attached shall bear the same meaning throughout this Policy.

Signed on behalf of Tokio Marine Europe Insurance Limited


Version 2 [1_10_08]


Version 2 [1_10_08]

General Definitions (The following General Definitions shall apply to this Policy and that wherever these words appear within the wording starting with a capital letter shall bear the same meaning throughout the Policy other than where specifically amended) The following definitions shall mean: Building(s): the structure of the Premises owned or used by the Policyholder

in connection with the Policyholder’s Business which unless otherwise declared shall be built mainly of brick stone concrete or other non-combustible materials including

1 (a) landlords’ fixtures and fittings if not insured separately in and/or

(b) tenants’ improvements comprising of fixtures and fittings only where the Policyholder is responsible if tenants have surrendered such property at the conclusion of any lease agreement

2 yards, car parks, forecourts, roads, paved areas,

pavements, footpaths and similar surfaces all constructed of solid materials

3 walls, gates, fences, outbuildings, annexes, extensions,

gangways, canopies, fixed signs, temporary buildings, conveniences, lamp posts, street furniture, and other structures around and pertaining to the Premises and/or

4 telephone, gas, water, electricity meters, associated

control gear and accessories, pipes, cables and the like including such property which is underground and/or in adjoining yards or roadways and which partly or wholly serves to supply the Premises but only to the extent of the Policyholder’s responsibility and/or

5 Landlords’ contents in accordance with the inner limit

stated in the Specification where Landlords’ contents item under Property Damage ‘All Risks’ Section is not made operative by the Policyholder.

Business: as stated in the Schedule and no other for the purpose of this

Policy. Company: Tokio Marine Europe Insurance Limited and/or other Insurers as

stated in the Schedule for their indicated proportion.


Version 2 [1_10_08]

Computer virus: a set of corrupting harmful or otherwise unauthorised

instructions or code including a set of maliciously introduced unauthorised or code programmatic or otherwise hat propagate themselves through a computer system or network of whatsoever nature. Computer virus includes but is not limited to “Trojan horses” “worms” and “time logic bombs”.

Damage: accidental physical loss of or destruction or damage. Deductible(s): the first amount (stated in the individual Specifications) of each

and every valid claim for which the Policyholder is responsible. Defined perils: fire, lightning, explosion, aircraft or other aerial devices or

articles dropped therefrom, riot, civil commotion, strikers locked-out workers, persons taking part in labour disturbances, malicious persons, earthquake, subterranean fire, storm, storm and flood, escape of water or fuel oil from water or oil tanks, apparatus or pipes, sprinkler leakage, impact by any road vehicle or animals.

Electronic data: facts concepts and information converted to a form useable for

communications interpretation or processing by electronic and electromechanical data processing or electronically controlled equipment and includes programmes software and other coded instructions for the processing and manipulation of data or direction and manipulation of such equipment.

Money: cash, bank and currency notes cheques and girocheques

(other than blank or partly completed cheques and girocheques), travellers cheques, bankers drafts and giro drafts, postal order, money orders, national savings certificates and premium bonds, current postage and revenue stamps, unexpired units in franking machines, trading stamps, national insurance stamps (whether affixed to cards or otherwise), national savings and holiday with pay stamps, gift tokens and bills of exchange, luncheon vouchers and VAT purchase invoices, travel tickets, travel warrants, phone cards, credit and charge cards all belonging to the Policyholder or for which the Policyholder has accepted responsibility.

Period of Insurance: the dates stated in the Schedule and shall start from one

minute past midnight (00.01am) and end at midnight (00.00pm) GMT

Policy: the script and Schedule and Specifications that form this

document. Policyholder: the person(s) or corporate body named in the Schedule.


Version 2 [1_10_08]

Pollution: the discharge, dispersal, release or escape of smoke vapours,

soot, fumes, acids, alkalis, toxic chemicals, liquids or gases, waste materials or other irritants contaminants or pollutants into or upon the atmosphere land (including Building(s) or other structures thereon) or any water course or body of water.

Premises: those premises stated in the Schedule. Schedule/Specification(s): those parts of the Policy that detail information provided to the

Company that forms the basis of this contract and that show(s) the coverage and limits selected.

Section(s): the part(s) of the Policy that detail(s) the insurance cover

provided. Terrorism: an act including but not limited to the use of force or violence

and/or the threat thereof of any person or group(s) of persons whether acting alone or on behalf of or in connection with any organisation(s) or government(s) committed for political religious ideological or similar purposes including the intention to influence any government and/or to put the public or any section of the public in fear.

United Kingdom: England, Scotland, Wales, Northern Ireland, the Channel

Islands and the Isle of Man. Unoccupied: any Building(s) or part of any Building(s) which is empty or not

in use by the Policyholder or any tenant of the Policyholder or in which the Policyholder does not nor intends to have authorised person(s) present during Business hours.


Version 2 [1_10_08]


Version 2 [1_10_08]

General Claims Conditions (The following General Claims Conditions shall apply to all Sections of this Policy other than where specifically amended) Admission of liability: No admission of liability or negotiation or settlement of any claim

shall be made without the Company’s written consent. Arbitration: (not applicable to the Employers’ and Property Owners’ Liability Sections)

If any difference shall arise to the amount to be paid under any Section of this Policy (liability being otherwise admitted) such difference shall be referred to an arbitrator to be appointed by the parties in accordance with the relevant statutory provisions and the making of an award shall be a condition precedent to any right of action against the Company.

Claims – Rights of the Company:

The Company shall be entitled whether before or after indemnification of the Policyholder to conduct in the Policyholder’s name the defence or settlement of any claim or to take action to seek recovery or secure indemnity form any third party in respect of any claim covered by this Policy and shall have full discretion in the conduct of any such proceedings

The Policyholder shall allow the Company to access any Premises

where Damage has occurred and to take and keep possession of or to deal with property in any reasonable manner. No property may be abandoned to the Company.

Discharge of liability: The Company may pay to the Policyholder in the event of any one

claim or series of claims arising out of one occurrence that specified Limit of liability or Sum Insured after deducting any sums already paid or any lesser amount for which the claim(s) can be settled and then be under no further liability in respect of such claim or series of claims except for the amount of any costs and expenses incurred prior to the date of the payment.

Electronic data processing media valuation:

Where electronic data processing media insured by this Policy suffer Damage then the basis of valuation shall be the cost of the blank media plus the costs of copying the electronic data from back up or from originals of a previous generation. These costs will not include research and engineering nor any costs of recreating gathering or assembly of such electronic data. If the media is not repaired replaced or restored the basis of valuation shall be the cost of the blank media

However this Policy does not cover any amount excluded by the

Electronic data exclusion contained in the General Exclusions of this Policy or any amount pertaining to the value of such electronic data to the Policyholder or any other party even if such electronic data cannot be recreated gathered or assembled.

Information and assistance:

All particulars information and assistance as may be reasonably required by the Company must be supplied by the Policyholder at their own expense.


Version 2 [1_10_08]

Mitigation: Following Damage immediate action must be taken by the Policyholder to minimise such Damage and avoid interruption or interference with the Business

Follow notification of a loss immediate action must be taken by the

Policyholder to minimise further Damage or bodily injury.

The Policyholder shall notify the Company Notification to the Company: 1 immediately in writing in the event of any occurrence causing

Damage or bodily injury for which this Policy may indemnify 2 as soon as possible in writing in the event of any legal

proceedings being brought against the Policyholder for which this Policy may indemnify

A detailed statement of any claim must be submitted within (a) 7 days of any Damage by malicious persons riot or civil

commotion strikers locked out workers or persons taking part in labour disturbances

(b) 30 days of the expiry of the Indemnity Period in respect of a loss under the Business Interruption Section

(c) 30 days of the happening of any other Damage or bodily injury

or such further time as the Company may in writing allow. All relevant and supporting documents held by the Policyholder

must be sent to the Company. Notification to the Police:

If theft or attempted theft or Damage by malicious persons (including arson) occurs or is suspected notice must be given immediately upon discovery to the police and all practical steps taken to recover property lost or stolen.

Terms of settlement: If the Company elects to repair reinstate or replace any property it

shall only do so in a reasonably sufficient manner as circumstances permit and shall not be bound to expend more than the relevant Sum Insured.


Version 2 [1_10_08]

General Conditions (The following General Conditions shall apply to all Sections of this Policy other than where specifically amended) Adjustment: If any part of the premium is shown in the Schedule as being

adjustable the Policyholder shall within one month of the expiry of each Period of Insurance or such further periods as the Company may allow furnish such details as the Company may require and the premium for such period shall be adjusted accordingly subject to any minimum premium(s) that may be required.

If any part of the premium is calculated on estimates provided by

the Policyholder the Policyholder shall keep accurate records containing all particulars relating thereto and shall permit the Company or its representatives to inspect such records at any time.

Applicable law: In the absence of any written agreement to the contrary the law

applicable to this contract will be English law. Average: Wherever a Sum Insured is said to be subject to Average if at the

time of any Damage such Sum Insured is less than the total value of respective property the Policyholder shall be considered as being their own insurer for the difference and shall bear a rateable share of the claim accordingly.

Cancellation: The Company may cancel this Policy or any Section thereof by

giving 30 days' notice by registered letter to the Policyholder at their last known address in which event the Policyholder at the discretion of the Company may receive a pro rata return of premium for the unexpired Period of Insurance.

Changes in facts: This Policy shall be avoided with respect to any Item or Section if in

regard to which after the commencement of this insurance 1 there is any alteration in the Premises or Business or

otherwise whereby the risk of loss or Damage is increased 2 there is any change of material facts 3 the Policyholder's interest ceases except by will or operation

of law unless the Policyholder immediately they become aware shall give

written notice to the Company and the Company agrees to continue this Insurance. The Policyholder shall pay an additional premium if required.


Version 2 [1_10_08]

Condition precedent to liability:

Each and every condition applied to this Policy whether as a General or Section Condition shall apply from the time the Condition attaches and continue to be in force during the whole currency of this Policy. Failure to comply with any such Condition shall be a bar to any claim.

Fraud: All benefit under this Policy shall be forfeited if any claim be in any

respect fraudulent or intentionally exaggerated or if any Damage be occasioned by the wilful act or with the connivance of the Policyholder.

Non-disclosure: This Policy shall be voidable in the event of misrepresentation

misdescription or non-disclosure of any material fact. Non-invalidation: The insurance provided by this Policy shall not be prejudiced by

any act or omission unknown to or beyond the control of the Policyholder whereby the risk of Damage or bodily injury is increased provided that the Policyholder immediately they become aware shall give notice in writing to the Company and pay an additional premium if required.

Personal representatives:

In the event of the Policyholder’s death the Company will pay such sums to the Policyholder’s personal representatives as would have been payable under this Policy to the Policyholder but for the death provided that they comply with the terms and Conditions of this Policy in so far as they apply.

Premium payment warranty:

It is a condition precedent to liability that the Policyholder undertakes to pay in full to the Company the premium amount within 90 days from inception of this Policy

If the premium amount has not been paid to the Company within

the specified time limits the Company shall have the right to cancel this Policy by notifying the Policyholder in writing

Cancellation shall be subject to 1 the Premium amount paid in full in the event of a claim prior to

the date of cancellation 2 a pro rata premium charge for the time that the Company has

been on risk It is agreed that the Company shall give no less than 5 days prior

notice of cancellation to the Policyholder. Rights of parties: A person or company who is not a party to this Policy has no right

under the Contracts (Rights of Third Parties) Act 1999 or any subsequent legislation to enforce any term of this Policy but this does not affect any right or remedy of a third party which exists or is available apart from such Act.


Version 2 [1_10_08]

Reasonable precautions:

It is a condition precedent to liability that the Policyholder shall take all reasonable precautions to prevent or reduce all losses under this Policy

The Policyholder shall take all reasonable care: 1 to prevent accidents and any injury or Damage 2 to observe and comply with statutory or local authority laws

obligations and requirements 3 in the selection and supervision of employees 4 to maintain the Premises machinery and equipment and

everything used in the Business in efficient and safe working order

5 to make good or remedy any defect or danger which becomes

apparent and take such additional precautions as the circumstances may require.

Unoccupancy: It is understood that as soon as the Policyholder or their Managing

Agent becomes aware that the Building(s) or part thereof is Unoccupied notice shall be given to the Company and that

1 the mains services shall be switched off and the water system drained whenever the Building(s) are vacated unless

(a) electricity is needed to maintain any fire or intruder alarm system in operation

(b) mains services are needed to maintain any sprinkler system in full working order. In these circumstances heating must be maintained at a minimum temperature of 5 degrees centigrade

2 the Building(s) shall be inspected thoroughly both internally

and externally at least weekly by the Policyholder and (a) A record maintained of such inspections (b) All defects in security and maintenance are rectified

immediately 3 all letter boxes must be sealed up and steps taken to prevent

accumulations of mail 4 accumulations of combustible materials shall be removed

during inspection 5 the Building(s) shall be secured against unlawful entry

including the setting of all security locking and other security mechanisms in operation

The Company shall also have the right to vary the terms or cancel

cover where appropriate.


Version 2 [1_10_08]

General Exclusions (The following General Exclusions shall apply to all Sections of this Policy other than where specifically amended) Date recognition: The Company shall not be liable under this Policy for any 1 claim resulting from Damage directly or indirectly caused by or

consisting of or arising 2 liability of whatsoever nature directly or indirectly caused by or

contributed to by or arising 3 proceedings that result directly or indirectly 4 additional expenditure arising directly or indirectly from the failure of any computer or data processing equipment or

media or microchip or integrated circuit or similar device or any computer software whether the property of the Policyholder or not to

(a) correctly recognise any date as its true calendar date (b) capture save or retain and/or correctly to manipulate

interpret or process any data or information or command or instruction as a result of treating any date otherwise than as its true calendar date

(c) capture save or retain and/or correctly to process the data as a result of the operation of any command which has been programmed into any computer software being a command which causes the loss of data or the inability to capture save or retain and/or correctly to process such data on or after any date

but this shall not exclude (other than in respect of liability and/or

proceedings as stated above) claims resulting from subsequent Damage not otherwise excluded which itself results from a Defined peril as stated in relevant Sections.

Deductible: The Company shall not be liable for the amounts stated in the

relevant Specifications in respect of each and every claim as ascertained after the application of all other terms and conditions of the Section including any condition of average.

The Policyholder shall effect no insurance in respect of any amount

specified as a Deductible herein.


Version 2 [1_10_08]

Electronic data: This Policy does not cover Damage distortion erasure corruption or

alteration of Electronic data from any cause whatsoever (including but not limited to Computer virus) or loss of use reduction in functionality cost expense of whatsoever nature resulting therefrom regardless of any other cause or event contributing concurrently or in any other sequence to the claim.

However in the event that a fire and/or explosion results from any of

the matters described above this Policy subject to all its terms Conditions and Exclusions will cover Damage occurring during the Period of Insurance to Property insured by this Policy.

Northern Ireland: (applicable only to Property Damage or Business Interruption Sections)

This Policy does not cover Damage to any property in Northern Ireland or loss resulting therefrom caused by or happening through or in consequence of riot civil commotion and (except in respect of Damage by fire or explosion) strikers locked-out workers or persons taking part in labour disturbances or malicious persons.

In any action suit or other proceedings where the Company alleges

that by reason of the provisions of this Exclusion any Damage is not covered by this Policy the burden of proving that such Damage is covered shall be upon the Policyholder.

Pollution: This Policy does not cover 1 in respect of Property Damage or Business Interruption or

Book Debts Sections of this Policy Damage caused by Pollution to Property insured other than caused by

(a) Pollution which itself results from a Defined peril (b) any Defined peril which itself results from Pollution 2 in respect of Property Owners’ Liability Section Pollution unless

such Pollution is caused by a sudden identifiable unintended and unexpected incident which occurs in its entirety at a specific time and place during the Period of Insurance.

Radioactivity:

This Policy does not cover Damage to any property whatsoever or any claim or expense resulting or arising from any consequential loss or from any legal liability directly or indirectly caused by or contributed to by or arising from

1 ionising radiations or contamination by radioactivity from any nuclear fuel or from any nuclear waste from the combustion of nuclear fuel

2 the radioactive toxic explosive or other hazardous properties of any explosive nuclear assembly or nuclear component thereof.

Sonic bang(s): (not applicable to the Employers’ Liability or Property Owners’ Liability Sections)

This Policy does not cover Damage occasioned by pressure waves caused by aircraft and other aerial devices travelling at sonic or supersonic speeds.


Version 2 [1_10_08]

1 This Policy does not cover (a) Damage to property (b) any Business interruption loss (c) any liability (d) any bodily injury of whatsoever nature cost or expense

Terrorism: (not applicable to the Terrorism, Employers’ and Property Owners’ Liability Sections)

resulting from or arising directly or indirectly from Terrorism 2 If the Company alleges that by reason of this exclusion any

loss Damage cost expense or liability is not covered by this insurance the burden of proving the contrary shall be upon the Policyholder

3 In respect of Property and Business Interruption covers only: (a) This Policy does not cover Damage to property or any

Business interruption loss resulting therefrom of whatsoever nature directly or indirectly caused by occurring from or in connection with any action taken in controlling preventing suppressing or in any way relating to any act of Terrorism

(b) In the event that any portion of the Terrorism exclusion is found to be invalid or unenforceable the remainder shall remain in full force and effect.

This Policy does not cover Damage Unoccupied

Building(s): 1 caused by the escape of water or fuel oil from water or oil tanks

2 caused by malicious persons not acting on behalf of or in conjuction with any political organisation

3 caused to fixed glass 4 caused by theft or any attempt thereat 5 the first GBP1,000 of each and every claim where the Building(s) or any part has been Unoccupied for more

than 30 days and results in Damage other than by fire or explosion. War & kindred risks: (not applicable to Employers’ Liability Section)

This Policy does not cover Damage or bodily injury directly or indirectly occasioned by or in consequence of or arising out of war invasion act of foreign enemy hostilities or warlike operations (whether war be declared or not) civil war rebellion revolution insurrection or military or usurped power or nationalisation confiscation requisition seizure or destruction by order of the Government or any Public Authority except destruction by the order of any Public Authority at the time of and for the purpose of preventing the spread of fire or explosion.


Version 2 [1_10_08]

Property Damage “All Risks” Section Additional Definitions (The following Additional Definitions shall apply to the whole of this Section and that wherever these words appear within this Section starting with a capital letter shall bear the same meaning throughout this Section) The following definitions shall mean: Computer equipment: all equipment and related software used by the Policyholder in

connection with their data processing operations. Landlords’ contents: furniture, furnishings, potted plants, trees and shrubs video, audio

building management systems and security equipment including cameras and lights and other similar equipment contents of fuel tanks statues and garden furniture the property of the Policyholder or held by them in trust and for which they are responsible situate at the Premises.

Property insured: Building(s) Landlords’ contents and other Items shown and/or

described in the Specification. Rent: the amount of Rent payable by the Policyholder in respect of the

lease of the Premises. Stock: Stock and materials in trade including work in progress the

property of the Policyholder or held by them in trust or on commission and for which they are responsible situate at the Premises.

Cover

The Company agrees that if any of the Property insured suffers Damage other than by an Excluded cause during the Period of Insurance the Company will pay to the Policyholder the value of the Property insured at the time of any Damage or at the Company’s option reinstate or replace such Property insured or any part of the Property insured subject to the terms Additional Conditions and Exclusions or this Section and the General Conditions limitations and Exclusions of the Policy.


Version 2 [1_10_08]

Additional Exclusions Excluded causes: This Section does not cover: 1 Damage caused by: (a) (i) faulty or defective design materials or inherent vice

latent defect gradual deterioration wear and tear or frost

(ii) explosion occasioned by the bursting of a boiler (not being used for domestic purposes only) economiser or other vessel machine or apparatus in which internal pressure is due to steam only and belonging to or under the control of the Policyholder

(iii) change in the water table level but this shall not exclude subsequent Damage which itself results from a cause not otherwise excluded

(b) (i) corrosion rust change in temperature dampness dryness wet or dry rot shrinkage evaporation loss of weight change in colour flavour texture or finish vermin insects marring or scratching

(ii) cracking fracturing collapse or overheating of boilers economisers vessels tubes or pipes nipple leakage and or the failure of welds of boilers

(iii) theft or attempted theft of Property insured: (1) unless involving forcible and violent entry to

or exit from the Building(s) at the Premises (2) unless involving assault or violence or threat

of assault or violence to the Policyholder or any of the Policyholder’s directors’ or employees’ or members of their families or any other person lawfully on the Premises

(3) where any of the Policyholder’s directors’ or employees’ are concerned as principal or accessory

(4) from any act of fraud, trick or false pretence (iv) mechanical or electrical breakdown including self-

ignition and or derangement of machinery or equipment

(v) faulty or defective workmanship or operational error or omission on the part of the Policyholder or any employee of the Policyholder

but this shall not exclude (1) such Damage not otherwise excluded which

itself results from a Defined peril or from any other accidental loss destruction or damage

(2) subsequent Damage which itself results from a cause not otherwise excluded

(c) disappearance unexplained or inventory shortage misfiling or misplacing of information clerical error book keeping accounting or billing errors or omissions


Version 2 [1_10_08]

(d) (i) subsidence ground heave or landslip (1) occasioned by the settlement or movement of

made up ground or by coastal or river erosion (2) occurring whilst the Premises or any part

thereof is in the course of erection or undergoing demolition or structural repair

(3) to roads pavements car parks outbuildings annexes walls gates or fences unless the main structure of the Premises is damaged by the same cause at the same time

The Policyholder shall give immediate notice to the Company in the event of building demolition or excavation operations being commenced on any adjoining site. In such event the Company shall have the right to vary or cancel the cover provided under this Section against Damage caused by subsidence ground heave or landslip

(4) due to defective design or workmanship or the use of defective materials

(ii) normal settlement or bedding down of new structures

2 Damage by wind rain hail sleet snow flood or dust to fences

and gates and/or moveable property in the open or in open-sided Building(s)

3 consequential loss of any kind or description except loss of

Rent when such loss of Rent is included in the Specification to this Section

4 breakage of fixed glass directly or indirectly resulting from (a) defects in framework beadings or other fittings (b) disfiguration or Damage other than fracture extending

through the entire thickness of the fixed glass (c) any attempt to remove any fixed glass change its

position or carry out any work on it or its framework beadings or other fittings.

5 the first GBP1,000 of the total of all losses as ascertained

after the application of any Condition of Average arising separately from Storm and Flood occurring within each and every period of 72 consecutive hours during the currency of this Policy


Version 2 [1_10_08]

Excluded property 1 explosives 2 Stock 3 vehicles licensed for road use (including accessories

thereon) caravans trailers railway locomotives and or rolling stock watercraft or aircraft

4 property in transit outside the Premises stated in the

Schedule 5 property or structures in the course of construction or

erection and materials or supplies in connection with all such property in the course of construction or erection

6 land piers jetties wharves bridges tunnels culverts

excavations or railways 7 livestock and/or growing crops and/or plants and/or trees

and/or landscaping 8 property damaged as a result of its undergoing any process 9 mobile phones, PDAs and/or other hand held computers 10 property which at the time of the happening of such Damage

is insured by any marine policy or policies 11 any property more specifically insured by or on behalf of the

Policyholder or by any other Section(s) of this Policy. Additional Conditions Automatic reinstatement:

In the absence of written notice by the Company or the Policyholder to the contrary within 30 days of Damage the Sum Insured shall not be reduced by the amount of any payment provided that the Policyholder pays the premium from the date of Damage to the date of expiry of the Period of Insurance and agrees to comply with any risk improvements or other measures the Company may require to mitigate any claim.

Company’s liability: The Company’s limit of liability in respect of any one loss or in the

aggregate in any one Period of Insurance shall in no case exceed 1 the Sum Insured in the Specification or the Total Sum Insured or 2 any Inner Limit shown in the Specification or 3 any Inner Limit shown in this Section or such other sum or sums as may be substituted by endorsement

signed by or on behalf of the Company.


Version 2 [1_10_08]

Condition of average:

Each Sum Insured (other than cover relating to Rent, fees, Removal of debris or Private Dwelling Houses) is declared to be separately subject to Average.

Contribution: If at the time of Damage any other insurance has been effected by or

on behalf of the Policyholder covering any of the Property insured by this Section of the Policy then the Company’s limit of liability shall be the Company’s rateable proportion of such Damage

If such other insurance is subject to a condition of Average this

Section of the Policy if not already subject to a condition of Average shall be subject to Average in like manner

If such other insurance is subject to any provision which excludes it

from ranking concurrently with this Section of the Policy either in whole or in part or from contributing rateably the liability of the Company under this Section of the Policy shall be limited to that proportion of the Damage which the Sum Insured under these Sections of the Policy bears to the value of the Property insured

Contracting purchasers:

Without prejudice to the rights and liabilities of the Company or the Policyholder if at the time of Damage the Policyholder has contracted to sell their interest in any Premises and the purchase has not been but shall afterwards be completed then such purchaser shall be entitled to benefit under this Section until completion except insofar as such Premises are more specifically insured by or on behalf of the purchaser.

Contractors’ interest:

Where the Policyholder is required to effect insurance on the Building(s) in the joint names of themselves and the contractor under the terms of a contract condition then the interest of the contractor in the Building(s) as a joint Policyholder is noted subject to any single contract valued in excess of GBP100,000 or 10% of the Sum Insured on the Building(s) whichever is the less being advised to the Company and an additional premium being paid as appropriate.

Designation: For the purpose of determining where necessary the Item or heading

under which any of the property is insured the Company agrees to accept the designation under which such property has been entered in the Policyholder's records.

Mortgagees and lessors:

Any increase in the risk of Damage resulting from any act or neglect of any mortgagor, leaseholder, lessee or occupier of any Building(s) insured by this Section of the Policy shall not prejudice the interest of any mortgagee, freeholder or lessor provided such increase in risk is without their prior knowledge or authority and that the Company is notified immediately they become aware of such increase in risk and pay an additional premium if required.

Other interests: Where various lessees, freeholders, mortgagees or debenture

holders are interested in the insurance by this Section the Policyholder undertakes to declare the names nature and extent of the interest of any such lessees, freeholders, mortgagees or debenture holders at the time of Damage.


Version 2 [1_10_08]

Reinstatement: Reinstatement may be given at the Company’s option as a basis of

settlement to a claim that has occurred under this Section. Where Reinstatement is implemented by the Company the amount

payable shall be calculated in accordance with the following and shall be subject to the special provisions stated below

1 Where Property insured is destroyed: (a) if a Building – the rebuilding of the property (b) if other property – its replacement by similar property in either case in a condition equal to or substantially the same as

but not better or more extensive than its condition when new 2 Where Property insured is damaged: The repair or the restoration of the damaged portion of the

property to a condition equal to or substantially the same as but not better or more extensive than its condition when new.

Special provisions (a) The work of Reinstatement which may be carried out

upon another site and in any manner suitable to the requirements of the Policyholder subject to the liability of the Company not being thereby increased must be commenced and carried out with reasonable despatch otherwise no payment beyond the amount which would have been payable under this Policy if this condition had not been incorporated therein shall be made.

(b) The Company’s limit of liability shall not exceed the Sum Insured or the limit of liability stated in the Specification.

(c) When any Property insured suffers Damage in part only the liability of the Company shall not exceed the sum representing the cost that the Company could have been called upon to pay for Reinstatement if such Property insured had been wholly destroyed.

(d) No payment beyond the amount which would have been payable in the absence of this Condition shall be made

(i) unless Reinstatement commences and proceeds without unreasonable delay

(ii) until the cost of Reinstatement shall have been actually incurred

(iii) if the Property insured at the time of its Damage is insured by any other insurance effected by or on behalf of the Policyholder which is not upon the same basis of Reinstatement


Version 2 [1_10_08]

(e) Each Item under this Condition is declared to be

separately insured subject to the following Condition of Average namely:

If at the time of Reinstatement the sum representing eighty-five per cent of the cost that would have been incurred in Reinstatement if the whole of the property covered by such Item had been destroyed exceeds the Sum Insured thereon shall at the commencement of any Damage be less than the value of the property covered within such Sum Insured the amount payable by the Company in respect of such Damage shall be proportionately reduced.

(f) All the terms and Conditions of this Section and the general terms Conditions and Exclusions of this Policy shall apply.

(g) (i) To any claim payable under the provisions of this Condition other than where they are expressly varied by the terms of this Condition.

(ii) Where claims are payable as if this Condition had not been incorporated.

Subrogation waiver: The Company agrees to waive any rights remedies or relief to which it

may become entitled by subrogation against 1 any company standing in the relation of parent to subsidiary or

subsidiary to parent to the Policyholder as defined in section 736 of the Companies Act 1985 or Companies (N.I.) Order

2 any company which is a subsidiary of a parent company of

which the Policyholder are themselves a subsidiary in each case within the meaning of section 736 of the Companies Act 1985 or Companies (N.I.) Order

3 any tenant or lessee in respect of Damage where the premium

has been paid by the tenant or lessee unless such Damage arises out of a criminal or malicious act of the tenant or lessee.

Waiver of Average Condition:

It is understood and agreed that any Average Condition applicable to this Section shall be waived at the time of Damage if the Policyholder undertakes to re-value the Building(s) by or under the supervision of a Fellow Associate member of the Royal Institute of Chartered Surveyors at least every three years and to update the relevant Building(s) Declared value or Sum Insured accordingly.

Workmans clause: Workmen are allowed on the Premises for the purpose of carrying out

any repairs minor additions and alterations or decorations from time to time without prejudice to this insurance.


Version 2 [1_10_08]

Additional Coverages (The following Additional Coverages shall be subject otherwise to the terms Additional Exclusions and Conditions of this Section and the General Exclusions limitations and Conditions of the Policy) This Section extends to cover: Architects’ surveyors’ engineers’ legal fees:

Architects’ surveyors’ legal and consulting engineers’ fees necessarily and reasonably incurred in the Reinstatement of the Property insured consequent upon Damage but not for preparing any claim it being understood that the amount payable for such Damage and fees shall not exceed in the aggregate the Sum Insured by each item.

Capital additions: In respect of Building(s) and Contents Items anywhere in the United

Kingdom insofar as the same are not otherwise insured alterations additions and improvements of the Policyholder’s Premises

provided that 1 the Company’s limit of liability shall not exceed 10% of the

Total Sum Insured or GBP1,000,000 any one Premises whichever is the less

2 the Policyholder undertakes to advise the Company on the

last day of each quarter and the last day of the Period of Insurance of all such acquisitions additions and extensions and to pay the appropriate additional premium on the amount of all increases so advised such additional premium to be calculated pro rata from the date of such addition so declared

3 this Additional Coverage shall not include any appreciation in

value in excess of the Sums Insured under the said Items. Day one uplift: (non-adjustable)

A percentage uplift amount as stated in the specification on the Declared value for Items of Building(s) and Contents. The uplift amount may be increased on the request of the Policyholder and agreement of the Company. This Additional Coverage shall be subject to the following Definition Conditions and any additional premium that may be required

Definition Declared value: shall mean the Policyholder’s assessment of the

cost of reinstatement of the Property insured arrived at in accordance with sub-paragraphs (e) & (f) of the Reinstatement Condition at the level of costs applying at the inception of the Period of Insurance but ignoring inflationary factors which may operate subsequently and making due allowance for:

1 the additional costs of reinstatement to comply with European Union Legislation or Public Authorities requirements

2 professional fees 3 debris removal costs


Version 2 [1_10_08]

in so far as the insurance by the item provides for such costs to be

covered. Conditions At the inception of each Period of Insurance the Policyholder shall

notify the Company of the Declared value of the Property insured by each of the said item(s). In the absence of such declarations the last amount declared by the Policyholder shall be taken as the Declared value for the ensuing Period of Insurance.

It is understood that the following wordings shall replace Special

provisions (e) and (f) of the Reinstatement Condition: (e) Each Item under this Condition is declared to be

separately insured subject to the following Condition of Average namely:

If at the time of Damage the Declared value of the Property insured covered by such Item is less than the cost of reinstatement at the inception of the Period of Insurance then the Company’s liability for any amount insured shall be limited to that proportion thereof which the Declared value bears to such cost of Reinstatement.

(f) Where by reason of any of the above Special

provisions no payment is to be made beyond the amount which would have been payable under this Section if this Condition had not been incorporated therein the rights and liabilities of the Company and the Policyholder in respect of the Damage shall be subject to the terms and Conditions of this Section and of the Policy including any Condition of Average as if this Condition had not been incorporated except that the Sums Insured shall be limited to 105% of the Declared values on an agreed uplift figure of 30%.

European Union and Public Authorities:

Such additional cost of Reinstatement for Building(s) and Contents which is incurred solely by reason of the necessity to comply with building or other regulations under or framed in pursuance of any Act of Parliament with bye-laws of any Public Authority or to comply with the stipulations of European Union legislation in consequence of Damage excluding

1 the cost incurred in complying with such regulations bye-laws or stipulations

(a) in respect of Damage occurring prior to the granting of this Additional Coverage

(b) in respect of Damage not insured by this Section (c) under which notice has been served upon the

Policyholder prior to the happening of the Damage (d) for which there is an existing requirement which has

not yet been implemented


Version 2 [1_10_08]

(e) in respect of undamaged property or undamaged

portions of property other than foundations (unless specifically excluded) of that portion of the damaged property

2 the additional cost that would have been required to make good

the damaged property to a condition equal to its condition when new had the necessity to comply with such regulations bye-laws and stipulations not arisen

3 the amount of any rate tax duty development or other charge or

assessment arising out of capital appreciation which may be payable in respect of the property by reason of compliance with any of the aforesaid Stipulations

The work of Reinstatement must be commenced and carried out

with reasonable despatch and in any case must be completed within twelve months after the Damage or within such further time as the Company may allow in writing and may be carried out wholly or partially upon another site subject to the liability of the Company under this Additional Coverage not being increased

If the liability of the Company apart from this Additional Coverage

shall be reduced by the application of any of the terms and Conditions of this Section or of the Policy (other than as a result of this clause) then the liability of the Company under this Additional Coverage shall be reduced in proportion

The total amount recoverable shall not exceed 15% of the Sum

Insured shown in the Specification. Explosion of steam pressure to any boiler economiser or other vessel machine:

Damage to Building(s) insured with a Declared Value in excess of GBP1,000,000 resulting from the bursting of any boiler or economiser or other vessel machine belonging to or is under the control of the Policyholder and in which internal pressure is due to steam only and which is not caused by any boiler or gas used for domestic purposes

provided that 1 the Company’s limit of liability shall not exceed GBP4,000,000

any one claim in excess of GBP1,000,000 any one claim 2 a separate Engineering insurance is in force for the primary

GBP1,000,000 3 any boiler economiser or other vessel machine plant is regularly

inspected by an independent competent engineer in accordance with statutory requirements.


Version 2 [1_10_08]

Fire extinguishing expenses:

Reasonable costs incurred by the Policyholder as a consequence of Damage in

1 refilling fire extinguishing appliances 2 replacing used sprinkler heads 3 refilling sprinkler tanks where costs are metered 4 recharging gaseous flooding systems 5 resetting fire alarms, intruder alarms and closed circuit

television systems Landscaped gardens: Costs and expenses incurred with the consent of the Company in

making good Damage to landscaped gardens or grounds at the Premises

provided that 1 the Company shall not be liable for (a) the cost of movement of soil other than as

necessary for surface preparation (b) the failure of trees, shrubs or turf to become

established following replanting (c) the failure of seeds to germinate (d) for the first GBP1,000 in respect of each and every

loss (other than by fire or explosion) or the amount of Deductible stated in the Specification whichever is the greater

2 the Company’s limit of liability shall not exceed GBP25,000 or

10% of the Sum Insured by the relevant item whichever is the less.

Leased Building(s): Damage to leased Building(s) or Rent derived therefrom which the

lessee is responsible for arranging insurance under the terms of a lease with the Policyholder but has failed to arrange or maintain insurance to comply with the terms of the lease or has failed to insure for an adequate amount whether the amount had been approved by the Policyholder or not

provided that 1 there is no other specific insurance cover provided under any

other part of this Policy 2 the Company shall not be liable for (a) Damage or loss of Rent that the Policyholder

recovers from any other party (b) due to the operation of any excess or deductible

under any other specific insurance (c) where the lessee’s policy fails due to a breach of

any warranty or condition as a result of any action of the landlord


Version 2 [1_10_08]

(d) due to the failure of the lessee to make or pursue a

legitimate insurance claim (e) any loss of Rent where there is no Damage claim

rendering the Building being unfit for occupation 3 the Company’s limit of liability shall not exceed in respect of

Building(s) and Rent combined for any one premise 10% of the Total Sum Insured or GBP1,000,000 any one Premise whichever is the less

4 Rent payable shall be subject to that portion as may be

equivalent to the time necessary for reinstating the Damage sustained but limited to 24 months.

The costs and expenses necessarily and reasonably incurred by or on behalf of the Policyholder to

Loss minimisation and prevention expenditure: 1 minimise or prevent further insured Damage at the Premises

1 2 prevent Damage threatened by the illegal deposit of

combustible property in on or around the Premises provided that (a) such cost shall be as a direct result of the Damage

incurred or threatened Damage (b) there is no other more specific insurance in force (c) the Company shall have given consent (d) the Company shall not be liable for the first 10% of

each and every claim or GBP250 whichever is the greater

(e) the Company’s limit of liability shall not exceed GBP25,000 in respect of any one Period of Insurance.

Metered water: The cost for which the Policyholder is responsible in respect of loss

of metered water provided that the Policyholder maintains a record of readings from the Water Authority meter at intervals of not more than seven days.

The amount payable in respect of any one Premises is limited to

such excess water charges demanded by the Water Authority resulting from the escape of water from pipes apparatus or tanks in consequence of Damage

provided that 1 the Policyholder takes all practicable steps to terminate

such escape of water as soon as it is discovered 2 the Company’s limit of liability shall not exceed

GBP25,000 in respect of any one Period of Insurance.


Version 2 [1_10_08]

Newly acquired, constructed or refurbished Building(s):

In respect of Building(s) and Landlords contents items including Rent any newly acquired, newly constructed or refurbished Building(s) the property of the Policyholder anywhere in the United Kingdom insofar as the same are not otherwise insured

provided that 1 the Policyholder undertakes to give particulars of such

extension of cover as soon as practicable and to effect specific insurance thereon retrospective to the date of the commencement of the Company’s liability

2 the Company’s limit of liability shall not exceed in respect of

Building(s) Landlord contents or Rent combined for any one premise 10% of the Total Sum Insured or GBP1,000,000 any one Premise whichever is the less

3 Additional Coverages – Day one uplift and/or European

Union and Public Authorities shall not apply where any premise is purchased for renovation, refurbishment, redevelopment or demolition.

4 Rent payable shall be subject to that portion as may be

equivalent to the time necessary for reinstating the Damage sustained but limited to 24 months.

5 the Company shall not be liable for any loss of Rent where

there is no Damage claim rendering the Building being unfit for occupation.

Obsolete building materials:

The reasonable additional cost incurred in replacement of damaged materials which given consideration to the scientific and technical knowledge at the time of installation construction or fitting were reasonably deemed to be fit for the purpose intended but require replacement with more suitable modern materials after the Damage.

The Building(s) shall not be regarded as being better or more

extensive than when new provided that the Company’s limit of liability shall not exceed 10% of the Declared Value of such Building(s) in respect of such additional costs.

Other premises: Any Landlord’s Contents if shown as insured in the specification

whilst temporarily removed to any other premises in the occupation of the Policyholder within the United Kingdom only if they are not otherwise insured

provided that the Company’s limit of liability shall not exceed

GBP10,000 any one claim.


Version 2 [1_10_08]

Privity of contract – contingent cover (Landlord and Tenant Covenant Act 1995):

All sums as the Policyholder shall become legally liable to pay and shall pay as indemnity to the tenant(s) in respect of the repair or reinstatement of premises previously owned but which are no longer the property of the Policyholder and where the current owner has failed to maintain adequate insurance cover.

provided that 1 this Additional Coverage shall not contribute in respect of any

more specific insurance effected by the new owner, tenants or sub-tenants

2 the Policyholder shall take all reasonable and appropriate

steps to obtain release from their liabilities under the covenants to insure such property on its disposal

3 the Company’s limit of liability shall not exceed

GBP2,500,000 in any one Period of Insurance. Refurbishment work and extensions to existing structures:

Any refurbishment work and extensions to existing structures including materials or supplies whilst refurbishment and/or extension work is being carried out at the Policyholder’s Premises

provided that the contract value shall not exceed GBP250,000. It is understood and agreed that Excluded property 5 shall not apply

in respect of this Additional Coverage. Reinstatement to match:

The cost of replacement, repair or modification of undamaged part of Building(s) that form part of a suite common design or function where Damage is restricted to a clearly identifiable area or to a specific part

The Company’s limit of liability shall not exceed the amount which

would have been payable for replacement repair or modification of the whole property forming part of a suite common design or function if such property had been wholly destroyed but in no case exceeding GBP25,000 any one occurrence and shall be limited to and not in any way increase the relevant Item’s Sum Insured.

Removal of debris: Costs and expenses necessarily incurred by the Policyholder with

the consent of the Company in 1 removing debris 2 dismantling and/or demolishing 3 shoring up or propping 4 boarding up 5 weatherproofing of the portion or portions of the Property insured by this Section.


Version 2 [1_10_08]

The liability of the Company shall be limited to and shall not in any

way increase the relevant Item’s Sum Insured The Company shall not pay any costs and expenses 1 incurred in removing debris except from the site of such

Property insured destroyed or damaged and the area immediately adjacent to such site

2 arising from Pollution of property and/or land not insured by

this Section. Replacement of locks:

The costs incurred as a result of the necessary replacement of all locks at the Premises following theft of the keys from the Premises or from the home of any director partner or employee authorised to hold such keys


GBP25,000 in respect of any one Period of Insurance. Residential property: In the event of any loss destruction or damage in 1 a residential Building or residential portion of any Building

insured under this Section of the Policy being uninhabitable or 2 access being prevented to such property this Section extends

to include Rent Receivable as defined in the Business Interruption “All Risks” Section and the reasonable additional cost of comparable accommodation incurred by the lessee occupant or owner until the said property is habitable or accessible

provided that Company’s limit of liability shall not exceed 20% of the

Sum insured applicable to the residential Building or residential portion of the Building concerned during any one Period of Insurance.

Tax liability (Enterprise zone allowance):

Building(s) on which the Policyholder has received enterprise zone allowance which suffers Damage and as a consequence of the payment of claims monies in respect of the rebuilding of that Damage the Policyholder incurs liability to Tax the Company will indemnify the Policyholder as follows:

1 Up to the Sum Insured specified in the Specification under the heading “Enterprise zone allowance”

2 In respect of the costs of rebuilding on another site or in

respect of the payment of loss of market value (as specified in the cost of rebuilding within this Section of the Policy) the Company’s liability shall not exceed the Sum Insured specified in 1 above of this Additional Coverage or the amount which would have been payable had rebuilding taken place on the site on which Damage occurred and on the date on which Damage occurred whichever is the less


Version 2 [1_10_08]

provided that (a) the amount payable under this Additional Coverage shall

be reduced by the amount of any tax concession or allowance available to the Policyholder (whether claimed or not) which could off set the liability to the Tax referred to above

(b) if the Sum Insured is less than the insurable amount then the amount payable will be proportionately reduced

(c) the Policyholder shall not be liable under this Additional Coverage for any sum payable by the Policyholder as a penalty or interest on the non-payment or late payment of Tax or for liability for Tax which arises from the replacement Building(s) having greater floor area than or being better or more extensive than the destroyed Building(s).

For the purpose of this Additional Coverage 1 Tax shall mean Corporation Tax or Income Tax at the

prevailing rate applicable to the Policyholder 2 Insurable amount shall mean the Policyholder’s liability to Tax

as specified in this special provision Temporary removal: Contents whilst temporarily removed for cleaning renovation repair

testing, servicing or other similar purposes anywhere within the United Kingdom including whilst in transit

provided that the Company’s limit of liability in respect of Damage

occurring elsewhere than in the Premises shall not exceed 10% of the Sum Insured by each Item.

This Additional Coverage does not apply to 1 property more specifically insured 2 motor vehicles and motor chassis licensed for normal road use 3 property held by the Policyholder in trust other than machinery

and plant. Theft by persons lawfully on the Premises:

Damage caused by theft or attempted theft by persons lawfully on the Premises. It is understood and agreed that Excluded cause 1(b)(iii) shall not apply to this Additional Coverage

provided that 1 the Company’s limit of liability shall not exceed GBP10,000 any

one claim 2 the Company shall not be liable for the first amount of GBP1,000

or any other overriding amount stated in the Specification in respect of each and every claim arising from Damage contributed to or by any person lawfully on the Premises.


Version 2 [1_10_08]

Theft Damage to building(s):

Damage caused by theft or attempted theft to Building(s) which is/are not insured by this Section provided the Policyholder is the owner of the Building(s) or is legally liable for such Damage.

Trace and access: Costs necessarily and reasonably incurred by the Policyholder in

locating the source of the escape of water or fuel oil from any tank apparatus or pipe and the subsequent making good of Damage


GBP25,000 or 10% of the relevant Sum Insured whichever is the less in respect of any one Period of Insurance.

Unauthorised use of electricity, gas, oil or water:

The cost of metered electricity, gas, oil or water for which the Policyholder is legally responsible arising from its unauthorised use by persons taking possession, keeping possession or occupying the Premises without the Policyholder’s authority

provided that 1 all steps are taken to terminate such unauthorised use as

soon as it is discovered 2 the Company’s limit of liability shall not exceed GBP25,000 in

respect of any one Period of Insurance. Upgrading sprinkler installations:

The additional costs incurred following Damage to the automatic sprinkler installation at the Premises in the event that on repair or reinstatement the Company requires the sprinkler system installation to conform with the Loss Prevention Council Rules at that time

provided that the Company’s limit of liability shall not exceed the

Sum Insured which applies to the relevant Premises. Value Added Tax: Value Added Tax paid by the Policyholder which is not

subsequently recoverable provided that 1 (a) the Policyholder’s liability for such tax arises solely

as a result of reinstatement or repair of the Building(s) to which such items relate following Damage

(b) the Company has paid or have agreed to pay for such Damage

(c) if any payment made by the Company in respect of the reinstatement or repair of such Damage shall be less than the actual cost of the reinstatement or repair any payment under this Additional Coverage resulting from that Damage shall be reduced in like proportion

2 the Policyholder’s liability for such tax does not arise from

the replacement Building(s) having greater floor area than or being better or more extensive than the destroyed or damaged Building(s)


Version 2 [1_10_08]

3 where an option to reinstate on another site is exercised the

Company’s liability under this Additional Coverage shall not exceed the amount of tax that would have been payable had the Building been rebuilt on its original site

4 the Company’s liability shall not include amounts payable by

the Policyholder as penalties or interest for non-payment or late payment of tax

N.B. Provisions to the contrary elsewhere in this Policy are

overridden as follows in respect of those items to which this clause applies:

(a) for the purposes of any condition of average rebuilding costs shall be exclusive of Value Added Tax

(b) the liability of the Company may exceed the Sum Insured by an item or in the whole the Total Sum Insured where such excess is solely in respect of Value Added Tax

Endorsements (The following Endorsements shall only apply if mentioned within the Specification) Automatic fire alarm: It is a condition precedent to liability that the Policyholder

undertakes the following when there is an automatic fire alarm system in any of the Premises:

1 To make a test every week for the purpose of ascertaining

the condition of each of the batteries and the Fire Brigade or off-site constantly attended location connection(s)

2 To test every aspect of the system on a six monthly

frequency and to remedy any defect revealed and to file such report ready for examination by the Company’s representatives when required

3 To notify the Company in advance of any impairment to the

fire alarm system using the Company’s proper standard impairment form

4 To notify immediately the Company of the removal of any

automatic fire alarm. Further the Policyholder shall hereby undertake that the installation

will be maintained in efficient working order. Subject to the observance of the above undertaking this Policy shall

not be invalidated by any defect in the said automatic fire alarm system due to any circumstances unknown to or beyond the control of the Policyholder.


Version 2 [1_10_08]

Electrical inspections: It is a condition precedent to liability that (Premises and appliances)

1 the electrical system at the Premises (or the Policyholder’s portion of the Premises) be inspected and tested by a member of the National Inspection Council for Electrical Installation Contracting in accordance with the Institution of the Electrical Engineers regulation for electrical installations and an inspection certificate issued following such an inspection.

2 any work specified on such certificate to ensure that the

electrical installation meets the standards of the Institution of Electrical Engineers and shall be undertaken within 60 days of the issue of the certificate.

3 a copy of each completion and inspection certificate is

retained by the Policyholder and available to the Company at the Company’s request.

4 the electrical installation shall be further inspected and tested

within the timescale recommended on the completion and inspection certificate.

5 all electrical appliances at the Policyholder’s Premises shall

be checked and inspected by a member of the National Inspection Council for Electrical Contracting at least once a year to ascertain their condition and safety and suitable “Tested for Electrical Safety” notice (bearing the date of such inspection) attached to all such appliances.

Fire doors: It is a condition precedent to liability that the Policyholder

undertakes to maintain all firebreak doors and shutters within their custody or control in efficient working order and to keep them free from obstruction at all times.

Glass (stained or etched) or neon or electrical fittings:

The Section does not cover fixed glass that is etched or stained or neon or other electrical light fittings signs or tubes.

Minimum security standards: (applicable in respect of theft or malicious damage cover only)

It is a condition precedent to liability that the Policyholder must ensure that the following minimum security standards shall be provided at the Premises and shall be in full and proper operation whenever the Premises are left unattended:-

1 all external doors and all internal doors allowing access into shared or common areas of the building are fitted with: -

(a) a mortice deadlock conforming to British Standard 3621 or a 5 lever or 6 pinned hardened steel close shackle padlock in conjunction with a matching boxed striking plate or locking bar and staple

(b) two hinge bolts to be installed at the top and bottom of any outward opening door


Version 2 [1_10_08]

2 all ground floor level and basement opening

windows/skylights and other opening windows or skylights accessible from roof deck or balcony areas fire escapes canopies or down pipes are fitted with key operated window locks unless such windows or skylights are protected by solid steel bars grilles lockable gates expanded metal or weld-mesh

3 any additional security measures imposed by the Company

shall be fitted in accordance with the Company’s requirements

Definitions: Intruder alarm installation:

Security and alarm requirements:

shall mean all the component parts detailed in the alarm specification and include the devices used to transmit or receive signals.

Keyholder: shall mean the Policyholder or any person or key holding company

authorised by the Policyholder who 1 is available at all times to (a) accept notification of faults or alarm signals relating to

the Intruder alarm installation (b) attend and allow access to the Premises 2 has been fully trained in the operation of the Intruder alarm

installation including but not limited to the setting /unsetting of the Intruder alarm installation.

Responsible person: shall mean a person authorised by the Policyholder to be

responsible for the security of the Premises. Requirements: It is a condition precedent to liability that the Policyholder or other

Responsible person must ensure that all security protections in force as required by the Company shall be in full operation securing the Premises whenever the Premises are left Unoccupied unattended or closed for Business

and where the Premises or part of the Premises are protected by an

Intruder alarm installation that 1 such Intruder alarm installation (a) must not be altered or amended in any way unless

such alteration or amendment has been approved by the Company


Version 2 [1_10_08]

(b) must be maintained under contract with the Company

approved installers or as otherwise agreed in writing by the Company.

2 all keys to such Intruder alarm installation including duplicate

keys relative to the security (and to any safe or strong room within the Premises) must be removed from the Premises when the Premises are left Unoccupied unattended or closed for Business.

3 the Policyholder must (a) maintain the secrecy of codes for the operation of the

Intruder alarm installation and no details of such codes shall be left on the Premises when the Premises are left Unoccupied unattended or closed for Business

(b) change the security code whenever a Keyholder leaves their employment

(c) immediately notify the Company upon receipt of any communication giving notice that the level of response to the Intruder alarm installation has been or will be reduced or withdrawn

(d) appoint at least two (2) Keyholders’ and lodge written details (which must be kept up to date) of the Keyholders’ names residential addresses and contact telephone numbers with alarm company alarm receiving centre and police and provide such further information as they may require.

4 in the event of (a) notification of alarm fault (b) activation of the Intruder alarm installation (c) interruption of the means to transmit or receive

signals to or from the Intruder alarm installation during any period that the Intruder alarm installation is set a

Keyholder must attend the Premises as soon as possible. 5 the Premises must not be left without at least one

Responsible person in attendance without the agreement of the Company

(a) unless the Intruder alarm installation is set in its entirety and with the means to transmit or receive signals (including the signalling path or paths) in full and effective operation

(b) where the police have withdrawn their response to (i) an alarm activation (where the Intruder alarm

installation does not include confirmed alarm activation technology)

(ii) a confirmed alarm activation where the Intruder alarm activation where the Intruder alarm installation includes confirmed alarm activation technology.


Version 2 [1_10_08]

Sprinkler installations and fire extinguishing appliances maintenance:

It is a condition precedent to liability that the Policyholder maintains and keeps in full working order automatic sprinklers if installed and fire extinguishing appliances in any of the Premises owned occupied or used by the Policyholder for the purpose of the Business and undertakes

1 to make a test at least once a week for the purpose of ascertaining the condition of

(a) the Fire Brigade connection or off-site constantly attended location and

(b) the batteries for the transmission of alarm signals for the sprinkler installation to the Fire Brigade or off-site constantly attended location.

Note: Where the Fire Brigade have given a written

undertaking to carry out this test the Policyholder’s responsibility will be confined to requirement (b)

Where the circuit concerned in (a) is not continuously

monitored this test must be made every weekday (holidays excepted).

2 to cause an inspection of all appliances to be made every

week for the purpose of ascertaining that they are in all respects maintained in proper working order.

3 promptly to remedy any defect whether disclosed by any

such inspection or otherwise and as regards automatic sprinklers the Policyholder further undertake

(a) to make tests every week for the purpose of ascertaining that the alarm gongs are in working order and that the stop valves controlling the water supply are fully open

(b) to operate the electric fire pumps for a minimum of ten minutes and diesel fire pumps for a minimum of thirty minutes each week and ensure all aspects are maintained in proper working order

(c) preventative maintenance of sprinkler systems and water supplies

(d) to make half yearly tests of all water flow switches for the purpose of ascertaining that each water supply is in order and record the particulars of each test

(e) to notify the Company in advance of any impairment to the fire protection system using the Company’s proper standard impairment form

(f) promptly to remedy any defect revealed by such tests.

Subject to the observance of the above undertaking this

Policy shall not be invalidated by any defect in any of the said automatic sprinklers and fire extinguishing appliances due to any circumstances unknown to or beyond the control of the Policyholder.


Version 2 [1_10_08]

Business Interruption “All Risks” Section (Rent receivable option) Additional Definitions (The following Additional Definitions shall apply to the whole of this Section and that wherever these words appear within this Section starting with a capital letter shall bear the same meaning throughout this Section) The following definitions shall mean: Annual rent receivable: the Rent receivable during the twelve months immediately before

the date of any Contingency. Estimated rent receivable:

the amount declared by the Policyholder to the Company as representing not less than the Rent receivable which it is anticipated will be earned by the Business during the financial year most nearly concurrent with the Period of Insurance (or proportionately increased multiple thereof where the Maximum indemnity period exceeds 12 months).

Indemnity period: the period beginning with the occurrence of any of the

Contingencies and ending not later than the Maximum indemnity period thereafter during which the results of the Rent receivable shall be affected in consequence of any of the Contingencies.

Maximum indemnity period:

the number of months stated in the Specification.

Rent receivable: the money paid or payable to the Policyholder for accommodation

and services provided in the course of the Business at the Premises situate as shown in the Specification.

Standard rent receivable:

the Rent receivable during that period corresponding with the Indemnity period in the twelve months immediately before the date of any of the Contingencies appropriately adjusted where the Indemnity period exceeds twelve months.

Cover

The Company agrees that in the event of the Business carried on by the Policyholder at the Premises being interrupted or interfered with as a consequence of any of the Contingencies during the Period of Insurance then the Company will indemnify the Policyholder in accordance with the provisions stated subject to the terms limitations Additional Conditions and Exclusions of this Section and the General Conditions limitations and Exclusions of the Policy.


Version 2 [1_10_08]

Contingencies

1 Any Damage as insured by the Property Damage “All Risks” Section of this Policy. 2 Explosion of any boiler or economiser on the Premises. 3 Any Damage occasioned in the course of theft but excluding loss due to the theft of

property. 4 Additional Coverages as otherwise extended under this Section. Basis of settlement The amount payable as indemnity shall be Current cost accounting:

Any adjustment implemented in current cost accounting shall be disregarded.

Rent receivable: 1 (a) In respect of loss of Rent receivable:

The amount by which the Rent receivable during the Indemnity period shall in consequence of any of the Contingencies fall short of the Standard rent receivable

(b) In respect of increase in cost of working: The additional expenditure necessarily and reasonably incurred for the sole purpose of avoiding or diminishing the loss of Rent receivable which but for that expenditure would have taken place during the Indemnity period in consequence of any of the Contingencies but not exceeding the amount of the reduction in Rent receivable avoided

less any sum saved during the Indemnity period in respect of

such charges and expenses payable out of Rent receivable as may cease or be reduced in consequence of any of the Contingencies

provided that if the Sum Insured is less than the Annual rent

receivable (or a proportionately increased multiple where the Maximum indemnity period exceeds twelve months) the amount payable shall be proportionately reduced.

2 this Insurance is limited to the additional increase in cost of

working (in excess of the amount payable under 1(b) relating to Rent receivable) necessarily incurred during the Indemnity period in consequence of any of the Contingencies for the sole purpose of avoiding or diminishing a reduction in Rent receivable or resuming or maintaining normal Business operations but not exceeding the Sum Insured stated in the Specification.


Version 2 [1_10_08]

Trends and variations: Adjustments shall be made to Rent receivable and Standard rent

receivable as may be necessary to provide for the trend of the Business and for variations in or other circumstances affecting the Business either before or after any of the Contingencies or which would have affected the Business had the Contingencies not occurred so that the adjusted figures shall represent as nearly as may be reasonably practicable the results which but for the Contingencies would have been obtained during the relative period after the Contingencies.

Value added tax: To the extent that the Policyholder is accountable to the tax

authorities for value added tax all terms in this Section shall be exclusive of such tax.

Additional Conditions Alternative trading: If during the Indemnity period the Business shall be conducted

elsewhere than at the Premises the money paid or payable in respect of such other Premises shall be brought into account in arriving at the Rent receivable during the Indemnity period.

Automatic reinstatement:

The Company’s limit of liability shall not be reduced by the amount of any of the Contingencies provided that the Policyholder pays the appropriate additional premium calculated from the date of Damage to the date of expiry of the Period of Insurance.

Cessation of cover: This Section shall be avoided if the Business is wound up or

carried on by a liquidator or receiver or permanently discontinued at any time after the commencement of this Insurance unless accepted by the Company in writing.

Company’s liability: The Company’s limit of liability shall in no case exceed in respect

of the insurance provided by this Section the Sum Insured or limit of liability or such other sums expressed in the Specification in any one Period of Insurance or any other sum or sums that may be substituted by Endorsement signed by or on behalf of the Company.

Contribution: If at the time of loss any other insurance has been effected by or

on behalf of the Policyholder covering such indemnity by this Section of the Policy then the Company’s limit of liability shall be the Company’s rateable proportion of such loss.

Material damage proviso waiver:

At the commencement of the Contingencies there shall be in force an insurance covering the interest of the Policyholder in the property at the Premises against Contingencies 1 2 or 3 and that payment shall have been made or liability admitted therefor under such insurance or would have been made or admitted but for the operation of a proviso excluding liability for losses below a specified amount.


Version 2 [1_10_08]

New Business: For the purpose of any claim arising from loss as a result of

Damage before the completion of the first year’s trading of the Business at the Premises the term “Standard rent receivable” shall bear the following meaning and not as stated within the Definitions to this Section

Standard rent receivable: The proportional equivalent for a period equal to the Indemnity

period of the Rent receivable realised during the period between the commencement of the Business and the date of the loss subject to the trends and variations basis of settlement.

Payments on account: Payments on account may be made during the Indemnity period if

required by the Policyholder subject to necessary adjustments at the end of the Indemnity period.

Professional accountants:

Any particulars or details contained in the Policyholder’s books of account or other Business books or records which may be required by the Company under the General Claims Conditions for the purpose of investigating or verifying any claim under this Section may be produced by Professional accountants if at the time they are regularly acting as such for the Policyholder and their report shall be prima facie evidence of the particulars and details to which such report relates the Company will pay to the Policyholder the reasonable charges payable by the Policyholder to their Professional accountants for producing such particulars or details

provided that the sum of the amount payable and the amount

otherwise payable under this Section shall in no case exceed the Sum Insured stated in the Specification.

Renewal: The Policyholder shall prior to each renewal provide the Company

with the Estimated rent receivable for the financial year most nearly concurrent with the ensuing year of insurance.

Rent free periods: If at the date of the Damage of any Building(s) insured by this

Policy which is subject to a “rent free period” concessions under the terms of the lease then the Maximum indemnity period stated in the Specification shall be adjusted by adding to the number of months shown in the Specification the remaining balance of such “rent free period” subject to allowance for the actual future rent having been included in the Day One rental value and subject to the amount added not exceeding 24 months.

Subrogation waiver: The Company agrees to waive any rights remedies or relief to

which it may become entitled by subrogation against 1 any company standing in the relation of parent to subsidiary

or subsidiary to parent to the Policyholder as defined in section 736 of the Companies Act 1985 or Companies (N.I.) Order as appropriate current at the time of the loss


Version 2 [1_10_08]

2 any company which is a subsidiary of a parent company of

which the Policyholder are themselves a subsidiary in each case within the meaning of section 736 of the Companies Act 1985 (N.I.) Order as appropriate current at the time of the loss

3 Any tenant or lessee in respect of Consequential Loss

applicable to the Premises unless such Consequential Loss arises out of a criminal or malicious act of the tenant or lessee.

Additional Coverage (The following Additional Coverages shall be subject otherwise to the terms limitations and Additional Conditions of this Section and the General Exclusions limitations and Conditions of the Policy) This Section extends to cover Building(s) awaiting sale:

loss from any Contingency where the Policyholder has contracted to sell their interest in the Building(s) and the sale is cancelled or delayed solely in consequence of the loss

Provided that the amount payable shall be based (at the

Policyholder’s option) on one of the following 1 During the period prior to the date upon which but for the

incident the Building(s) would have been sold the loss of rent being the actual amount of the reduction in the Rent receivable by the Policyholder during the Indemnity period solely inconsequence of the incident or

2 During the period commencing with the date upon which

but for the incident the Building(s) would have been sold ending with the actual date of sale or with the expiry of the Indemnity period if earlier the loss in respect of interest being

(a) the actual interest incurred on capital borrowed (solely to offset in whole or in part the loss of use of the sale proceeds) for the purpose of financing Business the rate of interest not be more than 4% above the London Interbank offered rate applying during the Indemnity period

(b) the investment interest lost to the Policyholder on

any balance of the sale proceeds (after deduction of any capital borrowed as provided for under paragraph (a) above)

less any amount receivable in respect of Rent


Version 2 [1_10_08]

(c) the additional expenditure being (i) the expenditure necessarily and reasonably

incurred in consequence of the loss solely to avoid or minimise the loss payable under 1 and 2 above but not exceeding the amount of loss avoided by such expenditure.

(ii) the additional legal fees and other expenditure solely as a result of the cancellation or delay in consequence of the loss but not exceeding either an amount equivalent to the expenditure incurred immediately prior to the Damage or GBP50,000 whichever is the less

Except the amount payable shall be adjusted to provide for any benefit derived by the Policyholder from cancellation of or delay in the sale so that it represents as nearly as may be reasonably practicable the actual loss suffered by the Policyholder.

Capital additions rent receivable:

loss from any of the Contingencies where the Policyholder’s newly acquired or newly erected Building(s) or alterations additions or extensions to the Building(s) insured by this Policy results in loss of Rent receivable

provided that 1 there is no other or more specific insurance in force 2 at any one situation the cover provided by this Additional

Coverage shall not exceed 10% of the Sum Insured under this Section or GBP500,000 during the Period of Insurance whichever is the less

3 the Policyholder shall give particulars of such Capital

additions as soon as reasonably practicable or within 3 months of renewal and effect specific insurance retrospective to the date of the commencement of the Company’s liability

4 the provisions of this Additional Coverage shall be fully

maintained. Cost of reletting: loss from any of the Contingencies where the Policyholder

incurs during the Period of Indemnity costs as a result of reletting the Building(s) (including legal fees in connection with the reletting) which with the consent of the Company are necessary and reasonable as a consequence of Damage.


Version 2 [1_10_08]

Legionellosis: loss from any of the Contingencies in consequence of any

outbreak of Legionellosis at the Premises causing restrictions on the use thereof on the order of the competent local authority.

provided that 1 the Premises shall mean only those Premises which are

stated in the Schedule to be insured and which are directly affected by the incident

2 the Company shall not be liable under this Additional

Coverage for any cost incurred in cleaning repair replacement or checking of property except those costs and expenses necessarily incurred with the consent of the Company in cleaning decontamination of the air-conditioning or water supply equipment at the Premises the use of which has been restricted on the order or advice of the competent local authority where the Company’s limit of liability shall not exceed GBP25,000 in any one Period of Insurance

3 the Indemnity period shall mean the period during which

the results of the Business shall be affected in consequence of the occurrence or discovery beginning with the date from which the restrictions on the Premises are applied and ending not later than the Maximum indemnity period thereafter

4 the Policyholder shall comply with all statutory

requirements and regulations 5 the Maximum indemnity period shall mean 3 months 6 the Company’s total limit of liability shall not exceed

GBP250,000 in any one Period of Insurance. Loss of attraction for leased premises:

loss from any of the Contingencies where the Building(s) or other property in the immediate vicinity of the Premises which would have such an effect on the Business carried on at the Premises that an agreement to lease the Premises or any part of the Premises in course of negotiation or review is avoided or amended and the rent receivable by the Policyholder is reduced the turnover of any lessee’s business is affected and rent receivable by the Policyholder is reduced subject to the Company’s limit of liability not exceeding GBP1,000,000 any one claim.

Managing agents premises:

loss from any of the Contingencies of property at the premises of any managing agents employed or engaged to collect Rent receivable

provided that 1 such Rent receivable is not paid to the Policyholder as a

direct result of the incident


Version 2 [1_10_08]

2 the Rent receivable is not outstanding for 120 days in

excess of its due date 3 such Rent receivable is not recoverable under any other

policy 4 the Company’s limit of liability shall not exceed

GBP500,000 during any one Period of Insurance.

loss from any of the Contingencies resulting from interruption of or interference with the Business carried on by the Policyholder at the Premises in consequence of

Notifiable diseases, vermin, defective sanitary arrangements, murder and suicide (Premises):

1 any occurrence of an notifiable disease (as defined below) at the Premises or attributable to food or drink supplied from the Premises

2 any discovery of an organism at the Premises likely to

result in the occurrence of a notifiable disease 3 the discovery of vermin or pests at the Premises 4 any accident causing defects in the drains or other

sanitary arrangements at the Premises which causes restrictions on the use of the Premises on the order of advice of the competent local authority

5 any occurrence or murder or suicide at the Premises provided that (a) the Company shall not be liable under this

Additional Coverage for any costs incurred in the cleaning repair replacement recall or checking of the property

(b) the Company shall not be liable for loss arising at those Premises which are directly effected by the occurrence discovery or accident

(c) the Company’s limit of liability for this Additional Coverage shall not exceed 25% of the Sum Insured as stated in the Specification or GBP250,000 in any one Period of Insurance whichever is the less.

Definitions applicable for this Additional Coverage Indemnity period: shall mean the period during which

the results of the Business shall be affected in consequence of the occurrence discovery or accident beginning with the date from which the restriction on the Premises are applied (or in the case of 4 above with the date of the occurrence) ending not later than the Maximum indemnity period thereafter.


Version 2 [1_10_08]

Notifiable disease: shall mean illness sustained by any

person resulting from 1 food and drink or 2 any human infectious or human

contagious disease excluding Acquired Immune Deficiency Syndrome (AIDS) an outbreak of which the competent local authority has stipulated shall be notified to them

Maximum indemnity

period: shall mean 3 months

Premises: shall mean only those locations state

in the Schedule under “Premises”. In the event that the policy includes an extension which deems loss destruction or damage at other locations to be an incident such extension shall not apply to this Additional Coverage.

Prevention of access:

loss from any of the Contingencies resulting from property in the vicinity of the Premises loss or Damage to which shall prevent or hinder the use of the Premises or access thereto whether the Premises or property of the Policyholder therein shall be damaged or not but excluding loss or Damage to property of any supply undertaking from which the Policyholder obtains electricity gas water or telecommunication services which prevent or hinders the supply of such services to the Premises

provided that 1 the Company’s limit of liability shall not exceed the Sum

Insured stated within the Specification 2 the Maximum indemnity period shall mean 3 months. Prevention of access: (Non- Damage)

loss in consequence of access to or use of the Premises being hindered or prevented due to property or rights of way in the immediate vicinity and not more than 1 mile radius of the Premises being:

1 occupied by terrorists or persons thought to be terrorists 2 unlawfully occupied by third parties except in the course

of a dispute between any employer and employee or group of workers

3 thought to contain or actually containing a harmful

devise provided that the police are immediately informed


Version 2 [1_10_08]

4 closed down or sealed off in accordance with

instructions issued by the police or by any other statutory body except where the cause of such closure or sealing off is

(a) the condition of the Buildings or the Business carried on within the Buildings

(b) the Policyholder’s non compliance with a prior order of the police or any other statutory body

(c) action taken as a result of drought or diseases or other hazards to health

provided that 1 the Company shall not be liable for loss arising from any

cause within the control of the Policyholder or the lessee 2 the Company shall not be liable for loss which is the

direct result of repairs or maintenance being carried out to property as a result of inherent defect or wear and tear.

3 the Maximum indemnity period shall mean 3 months 4 the Company shall not be liable for loss resulting from

interruption or interference with the Business during the first 24 hours of each and every claim

5 the Company’s limit of liability shall not exceed the

amount stated as the Sum Insured in the Specification or GBP250,000 during any one Period of Insurance whichever is the less.

loss from any of the Contingencies resulting from failure of public supply at any generating station or sub-station of land based Premises of

Public utilities:

1 the public electricity supply undertaking 2 the public gas supply undertaking 3 any natural gas producer linked directly therewith 4 water works or pumping station of public supply

undertaking 5 land based premises of the public telecommunications

undertakings from which the Policyholder obtains electricity gas water or

telecommunications services all in the United Kingdom provided that (a) the Company’s limit of liability shall not exceed

25% of the Sum Insured as stated in the Specification

(b) the Maximum indemnity period is 3 months


Version 2 [1_10_08]

Business Interruption “All Risks” Section (Increase cost of working only option) Additional Definitions (The following Additional Definitions shall apply to the whole of this Section and that wherever these words appear within this Section starting with a capital letter shall bear the same meaning throughout this Section) The following definitions shall mean: Indemnity period: the period beginning with the occurrence of any of the

Contingencies and ending not later than the Maximum indemnity period thereafter during which the results of the Rent receivable shall be affected in consequence of any of the Contingencies.

Maximum indemnity period:

the number of months stated in the Specification.

Cover

The Company agrees that in the event of the Business carried on by the Policyholder at the Premises being interrupted or interfered with as a consequence of any of the Contingencies during the Period of Insurance then the Company will indemnify the Policyholder in accordance with the provisions stated subject to the terms limitations Additional Conditions and Exclusions of this Section and the General Conditions limitations and Exclusions of the Policy. Contingencies

1 Any Damage as insured by the Property Damage “All Risks” Section of this Policy. 2 Explosion of any boiler or economiser on the Premises. 3 Any Damage occasioned in the course of theft but excluding loss due to the theft of

property. 4 Additional Coverages as otherwise extended under this Section. Basis of settlement The amount payable as indemnity shall be Current cost accounting:

Any adjustment implemented in current cost accounting shall be disregarded.


Version 2 [1_10_08]

Increase cost of working:

The additional expenditure necessarily and reasonably incurred by the Policyholder during the Indemnity period in consequence of any of the Contingencies for the sole purpose of avoiding or diminishing any interruption or interference with the Business.

Provided that in the event of loss the Company shall not be liable

for more than one third of the Sum Insured as stated in the Specification in respect of such additional expenditure arising in the first quarter of the Maximum indemnity period following the date of the incident nor more than an equal proportion of the balance of the Sum Insured per month in respect of the additional expenditure in the remainder of the Maximum indemnity period.

Additional Conditions

Payments on account: Payments on account may be made during the Indemnity period if

required by the Policyholder subject to necessary adjustments at the end of the Indemnity period.


Any particulars or details contained in the Policyholder’s books of account or other Business books or records which may be required by the Company under the General Claims Conditions for the purpose of investigating or verifying any claim under this Section may be produced by Professional accountants if at the time they are regularly acting as such for the Policyholder and their report shall be prima facie evidence of the particulars and details to which such report relates the Company will pay to the Policyholder the reasonable charges payable by the Policyholder to their Professional accountants for producing such particulars or details



Additional Coverage (The following Additional Coverages shall be subject otherwise to the terms limitations and Additional Conditions of this Section and the General Exclusions limitations and Conditions of the Policy) This Section extends to cover


Version 2 [1_10_08]

Legionellosis: loss from any of the Contingencies in consequence of any

outbreak of Legionellosis at the Premises causing restrictions on the use thereof on the order of the competent local authority.

provided that 1 the Premises shall mean only those Premises which are

stated in the Schedule to be insured and which are directly affected by the incident

2 the Company shall not be liable under this Additional

Coverage for any cost incurred in cleaning repair replacement or checking of property except those costs and expenses necessarily incurred with the consent of the Company in cleaning decontamination of the air-conditioning or water supply equipment at the Premises the use of which has been restricted on the order or advice of the competent local authority where the Company’s limit of liability shall not exceed GBP25,000 in any one Period of Insurance

3 the Indemnity period shall mean the period during which

the results of the Business shall be affected in consequence of the occurrence or discovery beginning with the date from which the restrictions on the Premises are applied and ending not later than the Maximum indemnity period thereafter

4 the Policyholder shall comply with all statutory

requirements and regulations 5 the Maximum indemnity period shall mean 3 months 6 the Company’s total limit of liability for this Additional

Coverage shall not exceed GBP250,000 in any one Period of Insurance.

Loss of attraction for leased premises:

loss from any of the Contingencies where the Building(s) or other property in the immediate vicinity of the Premises which would have such an effect on the Business carried on at the Premises that an agreement to lease the Premises or any part of the Premises in course of negotiation or review is avoided or amended and the rent receivable by the Policyholder is reduced the turnover of any lessee’s business is affected and rent receivable by the Policyholder is reduced subject to the Policyholders’ liability not exceeding GBP1,000,000 any one claim.


Version 2 [1_10_08]

Managing agents premises:

loss from any of the Contingencies of property at the premises of any managing agents employed or engaged to collect Rent receivable

provided that 1 such Rent receivable is not paid to the Policyholder as a

direct result of the incident 2 the Rent receivable is not outstanding for 120 days in

excess of its due date 3 such Rent receivable is not recoverable under any other

policy 4 the Company’s limit of liability shall not exceed

GBP500,000 during any one Period of Insurance. Prevention of access:

loss from any of the Contingencies resulting from property in the vicinity of the Premises loss or Damage to which shall prevent or hinder the use of the Premises or access thereto whether the Premises or property of the Policyholder therein shall be damaged or not but excluding loss or Damage to property of any supply undertaking from which the Policyholder obtains electricity gas water or telecommunication services which prevent or hinders the supply of such services to the Premises

provided that 1 the Company’s limit of liability shall not exceed the Sum

Insured stated within the Specification 2 the Maximum indemnity period shall mean 3 months. Prevention of access: (Non- Damage)

loss in consequence of access to or use of the Premises being hindered or prevented due to property or rights of way in the immediate vicinity and not more than 1 mile radius of the Premises being:

1 occupied by terrorists or persons thought to be terrorists 2 unlawfully occupied by third parties except in the course of

a dispute between any employer and employee or group of workers

3 thought to contain or actually containing a harmful device

provided that the police are immediately informed 4 closed down or sealed off in accordance with instructions

issued by the police or by any other statutory body except where the cause of such closure or sealing off is

(a) the condition of the Building(s) or the Business carried on within the Building(s)

(b) the Policyholder’s non compliance with a prior order of the police or any statutory body

(c) action taken as a result of drought or diseases or other hazards to health


Version 2 [1_10_08]

provided that 1 The Company shall not be liable for any loss arising from

any cause within the control of the Policyholder or the lessee

2 The Company shall not be liable for loss which is the direct

result of repairs or maintenance being carried out to property as a result of inherent defect or wear and tear.

3 the Maximum indemnity period shall mean 3 months 4 the Company shall not be liable for loss resulting from

interruption or interference with the Business during the first 24 hours of each and every claim

5 the Company’s limit of liability shall not exceed the amount

stated as the Sum Insured in the Specification or GBP250,000 during any one Period of Insurance whichever is the less.

loss from any of the Contingencies resulting from failure of public supply at any generating station or sub-station of land based Premises of

Public utilities:

1 the public electricity supply undertaking 2 the public gas supply undertaking 3 any natural gas producer linked directly therewith 4 water works or pumping station of public supply

undertaking 5 land based premises of the public telecommunications

undertakings from which the Policyholder obtains electricity gas water or

telecommunications services all in the United Kingdom provided that (a) the Company’s limit of liability shall not exceed

25% of the Sum Insured as stated in the Specification

(b) the Maximum indemnity period is 3 months


Version 2 [1_10_08]

Employers’ Liability Section Additional Definitions (The following Additional Definitions shall apply to the whole of this Section and that wherever these words appear within this Section starting with a capital letter shall bear the same meaning throughout this Section) The following definitions shall mean: Bodily injury: physical or psychiatric injury or illness and shall include death or

disease Employee: any of the following whilst working for and under the direct control

and supervision of the Policyholder in connection with the Business

1 any person under a contract of service or apprenticeship with (a) the Policyholder (b) any other party who is supplied or hired to the

Policyholder 2 any labour master or labour only sub-contractor or any

person supplied by them 3 any self-employed person working for the Policyholder 4 any person supplied to the Policyholder under a contract or

agreement stipulating that such person shall be deemed to be in the employment of the Policyholder for the period of such contract or agreement

5 any person participating in any government or otherwise

authorised work experience training study exchange or similar scheme

6 unpaid persons whilst temporarily working for the

Policyholder Geographical limits: 1 United Kingdom 2 Any other member country of the European Union 3 Elsewhere in the world in respect of Bodily injury caused by

or arising from non-manual activities of any Employee of the Policyholder normally resident within the United Kingdom and occurring during any Business journey or temporary visit.

Offshore: from the point of embarkation onto a conveyance at the point of

final departure to an offshore rig offshore platform or offshore installation until disembarkation from a conveyance onto land following return from an offshore rig offshore platform or offshore installation.


Version 2 [1_10_08]

Cover The Company agrees to indemnify the Policyholder against Bodily injury caused during the Period of Insurance to any Employee arising out of and in the course of their employment by the Policyholder occurring within the Geographical limits for 1 all sums which the Policyholder shall become legally liable to pay as damages and

claimant’s costs and expenses in connection with the Business (as defined in the Schedule of this Policy)

2 all costs and expenses incurred with the written consent of the Company in respect of a

claim against the Policyholder to which the indemnity expressed herein applies 3 the payment of solicitors’ fees incurred with the written consent of the Company for

representation of the Policyholder at proceedings in any court arising out of any alleged act or omission resulting in a claim which may be the subject of indemnity hereunder or at any Coroner’s Inquest or Fatal Accident Inquiry

provided that 1 the Company’s Limit of liability shall not exceed the sum stated in the Specification 2 when any Acts Regulations or Legislation stated herein have been amended or replaced

this Section of the Policy shall automatically refer to the amended or replaced Acts Regulations or Legislation

3 the indemnity granted by this Section is deemed to be in accordance with the provisions

of law relating to compulsory insurance of liability to Employees but the Policyholder shall repay to the Company all sums paid by the Company which the Company would not have been liable to pay but for the provisions of such law

subject to the terms Additional Exclusions and Conditions of this Section and the General Exclusions limitations and Conditions of the Policy. Additional Exclusions This Section shall not apply to any liability: Motor insurance: for which compulsory motor insurance or security is required under

any road traffic legislation within the European Community. Offshore: arising from Bodily injury in connection with work or visits

Offshore. Additional Conditions Asbestos: Arising out of or related in any way to asbestos or asbestos

containing materials from any loss demand claim or suit shall not exceed the inner Limit of liability as defined within the Specification.


Version 2 [1_10_08]

Contribution: The Company will not indemnify the Policyholder where cover is

provided by or would but for the existence of this Section of the Policy be insured by any other policy or section thereof except in respect of any excess beyond the amount payable under such other policy or section thereof or which would have been payable under such other policy or section thereof had this Section of the Policy not been effected.

Costs inclusive: The liability of the Company in respect of all damages payable

together with 1 costs and expenses recoverable by any claimant from the

Policyholder 2 costs and expenses incurred by the Company or by the

Policyholder with the written consent of the Company 3 the solicitors’ fees incurred by the Company for the

representation at any coroner’s inquest or fatal accident inquiry or for defending any proceedings in any court of summary jurisdiction

shall not exceed the Limit of liability stated in the Specification. Discharge of liability: The Company may pay to the Policyholder the maximum sum

payable under this Section in respect of any one occurrence or lesser sum for which the claim or claims arising from such occurrence can be settled and the Company shall not be under any further liability in respect of that occurrence except for payment of costs and expenses of litigation incurred prior to such payment.

Limit of liability: The liability of the Company for all damages payable for any one

claimant or number of claimants in respect of or arising out of any one occurrence or all occurrences of a series consequent on one original cause shall not exceed the sum stated in the Specification as the Limit of liability or any inner limit.

Additional Coverages (The following Additional Coverages shall be subject otherwise to the terms Additional Exclusions and Conditions of this Section and the General Exclusions limitations and Conditions of the Policy) The Additional Coverages stated below shall not increase the Company’s Limit of liability stated within the Specification for this Section. The insurance by this Section extends to cover: Additional insured parties:

1 any director, partner, proprietor or Employee


Version 2 [1_10_08]

2 any officer member voluntary helper or Employee of the

Policyholder’s canteen social sports and welfare organisation or first aid or medical arrangements (excluding medical practitioners) security fire or ambulance services

3 any director or senior official of the Policyholder in their

private capacity arising out of work undertaken for them by Employees

at the request of the Policyholder. Compensation for court attendance:

any director partner or Employee attending court as a witness at the request of the Company in connection with a claim in respect of which the Policyholder is entitled to indemnity under this Section the Company will provide compensation to the Policyholder up to following rates per day on which attendance is required

1 any director or partner of the Policyholder GBP250 2 any Employee GBP100 Death of the Policyholder:

in the event of death of the Policyholder the Policyholder’s personal representatives in respect of legal liability incurred by the Policyholder provided that such representative shall act as though they were the Policyholder.

The Policyholder and if the Policyholder requires any Employee in respect of the costs or legal representation and other legal costs incurred in defending a prosecution brought under Sections 2 and 8 of the Health and Safety at Work etc Act 1974 and other relevant legislation or regulations provided that the prosecution:

Health and safety at work Act 1974:

1 relates to an offence alleged to have been committed during the Period of Insurance and in the course of the Business and

2 relates to matters affecting the health safety and welfare of

Employees. In addition the Company shall pay: 1 the costs of legal representation and other legal costs of

appeal including an appeal against improvement and prohibition notices incurred with the Company’s written consent

2 prosecution costs awarded to the Policyholder In respect of this Additional Coverage (a) the Company’s limit of liability shall be limited to

GBP250,000 any one offence (b) the Company shall not be liable if there be any other

insurance policy in existence.


Version 2 [1_10_08]

Indemnity to principals: any principal or Public or Local Authority as though they were also

the Policyholder in respect of liability arising out of Bodily injury resulting from the performance of work by the Policyholder but solely insofar as is necessary to meet the requirements of any contract or agreement entered into for the performance of such work.

provided that the principal shall observe fulfil and be subject to the

terms Exclusions and Conditions of this Section and General Conditions of the Policy.

Motor vehicle contingent liability:

the Policyholder in respect of Bodily injury to an Employee if at the relevant time the Employee is

1 travelling as a passenger in or on any motor vehicle 2 entering any motor vehicle 3 alighting from any motor vehicle which is neither the property of or provided by the Policyholder but

which is being used in connection with the Business provided that this Additional Coverage shall not apply in respect of

any liability (a) for Bodily injury (i) to an Employee who is driving such a vehicle (ii) whilst such vehicle is being driven by the

Policyholder (iii) to an Employee in circumstances where such

vehicle is being driven by any person who to the knowledge of the Policyholder does not hold a licence to drive such vehicle unless such person has held and is not disqualified from holding or obtaining such a licence.

(b) any liability arising from a vehicle being used outside of any member states of the European Union

(c) any liability in respect of which the Policyholder is entitled to indemnity under any motor policy or other more specific insurance.

Terrorism: Terrorism as stated in the General Definitions provided that the

Company’s Limit of liability for such Additional Coverage shall not exceed the inner limit stated in the Specification.


Version 2 [1_10_08]

Unsatisfied court judgements:

judgements for damages being obtained by an Employee in respect of Bodily injury caused during the Period of Insurance and arising out of and in the course of their employment in the Business against any company or individual in any court and remaining unsatisfied in whole or in part six months after the date of such judgement the Company will pay to the Employee or the personal representatives of the Employee at the request of the Policyholder the amount of any such damages and any awarded costs to the extent that they remain unsatisfied

provided that 1 there is no appeal outstanding 2 if any payment is made under the terms of this Additional

Coverage the Employee or the personal representatives of the Employee shall assign the judgement to the Company.


Version 2 [1_10_08]


Version 2 [1_10_08]

Property Owners Liability Section Additional Definitions (The following Additional Definitions shall apply to the whole of this Section and that wherever these words appear within this Section starting with a capital letter shall bear the same meaning throughout this Section) The following definitions shall mean: Bodily injury: physical psychiatric injury illness or disease including resulting

death wrongful arrest detention or imprisonment.

any of the following whilst working for and under the direct control and supervision of the Policyholder in connection with the Business 1 any person under a contract of service or apprenticeship

with (a) the Policyholder (b) any other party who is supplied or hired to the

Policyholder 2 any labour master or labour only sub-contractor or any

person supplied by them 3 any self-employed person working for the Policyholder 4 any person supplied to the Policyholder under a contract or

agreement stipulating that such person shall be deemed to be in the employment of the Policyholder for the period of such contract or agreement

5 any person participating in any government or otherwise

authorised work experience training study exchange or similar scheme

Employee:

6 unpaid persons whilst temporarily working for the Policyholder.

Geographical limits: 1 anywhere in the United Kingdom and offshore installations

within the continental shelf around the United Kingdom 2 elsewhere in Europe but only in connection with the

Business carried on by the Policyholder at or from any premises situated in the United Kingdom

3 elsewhere in the world other than the United States of

America or Canada arising out of the Business visits by directors or non-manual Employees ordinarily resident in the United Kingdom


Version 2 [1_10_08]

Product: any commodity article goods or item manufactured sold supplied

installed erected repaired altered or treated by the Policyholder and no longer in the custody or under the control of the Policyholder or any Employee but excluding food and/or drink supplied for consumption whilst on the Policyholder’s Premises.

Cover The Company agrees to indemnify the Policyholder in respect of all sums that the Policyholder shall become legally liable to pay as damages and claimant’s costs and expenses arising out of accidental 1 Bodily injury to any person except to any Employee where such injury arises out of and

in the course of their employment 2 Damage to material property not belonging to or in the custody or under the control of

the Policyholder or any Employee 3 obstruction, trespass, nuisance or interference with pedestrian, road, rail, air or

waterborne traffic, any invasion of the right of privacy or interference with any right of air, light, water or way

occurring during the Period of Insurance in connection with the Business within the Geographical limits provided that the Company’s Limit of liability shall not exceed the sums stated in the Specification. In addition the Company shall also indemnify the Policyholder for (a) all costs and expenses incurred with the written consent of the Company in

respect of a claim against the Policyholder to which the indemnity expressed herein applies

(b) the payment of solicitors’ fees incurred with the Company’s written consent for representation of the Policyholder at proceedings in any court arising out of any alleged act or omission resulting in a claim which may be the subject of indemnity hereunder or at any Coroner’s Inquest or Fatal Accident Inquiry

subject to the terms Additional Exclusions and Conditions of this Section and the General Exclusions limitations and Conditions of the Policy. Additional Exclusions This section shall not apply to liability or indemnity: Advice and professional negligence:

arising out of the provision of or failure to provide instruction advice information or professional service whether or not a fee is involved. This exclusion shall not apply in respect of instruction advice or information which is provided or which should be provided in connection with a Product.


Version 2 [1_10_08]

Aircraft/watercraft: arising from any Product which is incorporated in or could affect

the operation or safety of 1 any aircraft or aero-spatial or aerial device or other craft

intended to travel through air or space 2 watercraft. Asbestos: arising out of or related in any way to asbestos or asbestos

containing materials from any loss demand claim or suit The Company shall have no duty or of any kind with respect to any such loss demand claim or suit.

Contractual liability: that has been assumed under a contract or agreement and would

not have attached in the absence of such contract or agreement. Defective workmanship:

arising from the cost of rectifying defective work carried out by or on behalf of the Policyholder.

in respect of 1 the payment of any fines penalties or liquidated damages

Fines penalties and other damages:

2 punitive or exemplary damages. Offshore work: in respect of a visit to or work at or on any offshore rig offshore

platform or offshore installation or arising from transit by sea or by air to or from including embarkation and disembarkation.

Pollution: arising out of Pollution unless such Pollution is caused by a

sudden identifiable unintended and unexpected incident which occurs in its entirety at a specific time and place during the Period of Insurance

All Pollution which arises out of one incident shall be deemed to

have occurred at the time such incident takes place The Company’s Limit of liability shall be as stated in the

Specification for any one occurrence and in the aggregate in any one Period of Insurance.

Vehicles vessels or craft:

in respect of Bodily injury or Damage to material property arising from the ownership possession or use by or on behalf of the Policyholder of

1 any mechanically propelled vehicle or plant used in circumstances where insurance or security is required by law or where indemnity is provided under any motor policy or other more specific insurance provided that this Exclusion shall not apply to

(a) the loading or unloading of any vehicle or trailer or delivery or collection of goods in connection with any vehicle or trailer

(b) such vehicle whilst the same is being used as a tool of trade


Version 2 [1_10_08]

2 any vessel or craft or oil rig made or intended to float on or

in or travel through water or air or space or the loading or unloading of such vessel or craft other than

(a) any watercraft owned by others and used by the Policyholder for Business entertainment

(b) non powered watercraft (c) barges (d) motor launches whilst on inland waterways. Additional Conditions Contribution: The Company will not indemnify the Policyholder where

cover is provided by or would but for the existence of this Section of the Policy be insured by any other policy or section thereof except in respect of any excess beyond the amount payable under such other policy or section thereof or which would have been payable under such other policy or section thereof had this Section of the Policy not been effected.

Property damage deductible:

The amount payable under this Section in respect of each and every claim arising from Damage to material property shall be reduced by the amount shown in the Specification as the Deductible.

Worldwide jurisdiction: (excluding USA/Canada)

The indemnity provided by this Section of the Policy shall apply to judgements of first instance against the Policyholder in any Court in the World excluding judgements obtained in the Courts of the United States of America its territories or possessions or Canada or orders obtained in the said Courts for the endorsement of foreign judgements whether by way of reciprocal agreements or otherwise

The premium for this insurance has been calculated

accordingly and no consideration has been paid in respect of liabilities arising under any other law or the jurisdiction of any other courts.


Version 2 [1_10_08]

Additional Coverages (The following Additional Coverages shall be subject otherwise to the terms Additional Exclusions and Conditions of this Section and the General Exclusions limitations and Conditions of the Policy) The Additional Coverages stated below shall not increase the Company’s Limit of liability stated within the Specification for this Section. The insurance by this Section extends to indemnify: Additional Business activities:

in addition to the Business stated in the Schedule the following activities shall apply to this Section

1 maintenance of property and Premises owned or occupied by the Policyholder

2 activities carried out by any director partner or Employee

on behalf of the Policyholder 3 activities carried out by any officer, member, voluntary

helper or Employee on behalf of the Policyholder in respect of the Policyholder’s canteen social sports or welfare organisation or first aid, medical arrangements (but excluding medical practitioners) security fire or ambulance service

4 any private work within the Geographical limits carried

out by an Employee of the Policyholder undertaken for and on behalf of any director or senior official of the Policyholder.

5 participation in exhibitions within the Geographical limits. Compensation for court attendance:

any director partner or Employee attending court as a witness at the request of the Company in connection with a claim in respect of which the Policyholder is entitled to indemnity under this Section the Company will provide compensation to the Policyholder up to following rates per day on which attendance is required

1 any director or partner of the Policyholder GBP250 2 any Employee GBP100 Cross liabilities: where more than one party is named as the Policyholder each

party as though they were individually insured provided that 1 this Additional Coverage shall not apply to liability for

which an indemnity is or would be granted but for the existence of this insurance under any Employers’ Liability insurance


Version 2 [1_10_08]

2 this Additional Coverage shall not apply to liability arising

directly or indirectly in connection with Damage to premises (including contents) the occupancy of which is shared between two or more parties named as insured.

Custody or control: the Policyholder’s liability for Damage to material property in the

custody of or under the control of the Policyholder but solely in respect of

1 directors’ Employees’ or visitors’ personal effects (including motor vehicles)

2 property at premises not owned leased hired or rented by

the Policyholder but in their temporary occupation or possession for the purpose of work therein or thereon except for the specific part of the premises or for material property which is being worked on

3 premises leased or rented to the Policyholder provided

that liability for such Damage is not assumed by the Policyholder under agreement which would not have attached in the absence of such agreement.

Data Protection Act: the Policyholder’s liability to pay compensation in respect of

damage or distress under Section 13 of the Data Protection Act 1998 including defence costs and expenses

provided that 1 an offence is first committed by the Policyholder during the

Period of Insurance 2 this Additional Coverage shall not apply in respect of (a) the cost of replacing reinstating rectifying or erasing

any personal data (b) claims which arise out of circumstances notified to

previous insurers or known to the Policyholder at inception of this insurance

(c) liability for which indemnity is provided under any other insurance

3 the Policyholder is registered under the Data Protection

Act 1998 or has applied for such registration which has not been refused or withdrawn

4 the Policyholder has taken all reasonable care to comply

with the provisions of the Data Protection Act 1998 5 the Company’s Limit of liability for such Additional

Coverage shall be limited to GBP250,000 any one offence. Death of the Policyholder:

in the event of death of the Policyholder the Policyholder’s personal representatives in respect of legal liability incurred by the Policyholder provided that such representative shall act as though they were the Policyholder.


Version 2 [1_10_08]

Defective Premises Act 1972:

the Policyholder against liability incurred by the Policyholder by virtue of Section 3 of the Defective Premises Act 1972 or Section 5 of the Defective Premises Measure (Northern Ireland) Order 1975 in connection with premises disposed of by the Policyholder excluding

1 any liability where the Policyholder is entitled to indemnity under any other insurance

2 any claim for the cost of remedying any defect or alleged

defect which if not remedied may result in liability to which the indemnity expressed in this Section applies

3 the Company’s Limit of liability for such Additional

Coverage shall be limited to GBP250,000. Food Safety Act legal costs:

the Policyholder or at the request of the Policyholder any Employee director or partner of the Policyholder against legal costs and expenses incurred with the prior approval of the Company in the defence of any criminal proceedings for breach of the Food Safety Act 1990 first brought during the Period of Insurance in the course of the Business

provided that 1 this Additional Coverage shall not apply to proceedings

consequent upon any deliberate act or omission 2 this Additional Coverage shall not apply to costs in respect

of which the Policyholder or their Employees directors or partners are covered by any other policy of insurance

3 the Company’s liability for such Additional Coverage shall

be limited to GBP250,000 any one proceeding.

the Policyholder for costs and expenses 1 (other than claimant costs recoverable from the

Policyholder or any additional insured party) incurred with the Company’s written consent in the investigation adjustment appraisal defence or settlement of a claim to which an indemnity applies under this Section including expert legal appeal and defence costs

2 of legal representation (a) any Coroner’s Inquest or Fatal Accident Inquiry or

any allegations of manslaughter or corporate killing made against the Policyholder

(b) any proceedings in any court arising out of any breach or alleged breach of a statutory duty

which may be the subject of indemnity under this Section

Health and safety at work Act 1974:


Version 2 [1_10_08]

3 cost and expenses incurred in connection with the defence

of criminal proceedings brought against the Policyholder or with an appeal against a conviction or improvement or prohibition notice arising from such proceedings relating to an offence committed or alleged to have been committed in the course of the Business during the Period of Insurance under the Health and Safety at Work Act 1974 (other than in respect of matters relating to the health safety or welfare of Employees) or regulations or legislation (or amendments or replacements thereto)

provided that 1 the Company shall not indemnify the Policyholder in

respect of any fines or penalties imposed on or ordered to be paid by the Policyholder under any legislation

2 the Company’s limit of liability shall be limited to

GBP250,000 any one offence 3 the Company shall not be liable if there be any other

insurance policy in existence. Indemnity to principals: any principal or Public or Local Authority as though they were

also the Policyholder in respect of liability arising out of Bodily injury or Damage to material property resulting from the performance of work by the Policyholder but solely insofar as is necessary to meet the requirements of any contract or agreement entered into for the performance of such work

provided that the principal shall observe fulfil and be subject to

the terms exclusions and conditions of this Section and the General Conditions of the Policy.

the Policyholder for Bodily injury or Damage to material property arising from the ownership possession or use of mechanically propelled vehicles used in connection with the Business of the Policyholder and that are neither the property of or provided by the Policyholder nor being driven by the Policyholder but only to the extent where there is no entitlement to indemnity under any motor policy or other more specific insurance provided that 1 the Company shall not be liable in respect of Damage to

such vehicle or to goods conveyed therein or thereon and shall indemnify the Policyholder and no other person hereunder

Motor vehicle contingent liability:

2 the Company shall not be liable whilst such vehicle is being driven by any person who to the knowledge of the Policyholder does not hold a licence to drive such vehicle unless such person has held and is not disqualified from holding or obtaining such a licence.


Version 2 [1_10_08]

the personal liability of any director or Employee or any member of the family of such director or Employee during temporary visits anywhere in the world in connection with the Business of the Policyholder provided that 1 this Additional Coverage shall not apply (a) to legal liability arising directly from (i) any agreement or contract unless liability would

have existed otherwise (ii) the ownership or occupation of land or buildings (iii) the carrying on of any trade or profession

Overseas personal liability:

(iv) the ownership possession or use of fire arms (other than sporting guns) mechanically propelled vehicles craft designed to travel through air or space hovercraft watercraft or animals of dangerous species

(v) Damage to material property owned or held in trust by any director or Employee or any member of the family of such director or Employee

(b) in respect of liability more specifically insured under any other insurance

(c) to legal liability for Bodily injury to any member of the family of any director or Employee or to any Employee of any director or Employee or any member of the family of such Employee

2 any person indemnified under this Additional Coverage shall act as though they were the Policyholder and observe fulfil and be subject to the terms provisions and conditions of this Section

3 the Company shall not be liable for such Additional

Coverage unless the Company has the sole conduct and control of all claims.


Version 2 [1_10_08]


Version 2 [1_10_08]

Loss of Book Debts Section Additional Definitions (The following Additional Definitions shall apply to the whole of this Section and that wherever these words appear within this Section starting with a capital letter shall bear the same meaning throughout this Section) The following definitions shall mean: Customers’ accounts: hire purchase or credit accounts of the Business. Outstanding debit balances:

the total declared in the statement last given under the provisions of the declaration condition adjusted for

1 bad debts 2 amounts debited (or invoiced but not debited) and

credited (including credit notes and cash not passed through the books at the time of the Damage) and

3 any abnormal condition of trade which had or could have

had a material effect on the Business so that the figures thus adjusted shall represent as nearly as

may be reasonably practicable those that would have been obtained on the date of the Damage had the Damage not occurred.

Property insured: the Policyholder’s books of accounts or other Business books

or records. Cover The Company agrees that if any of the Property insured at the Policyholder's Premises suffers Damage other than by an Excluded cause during the Period of Insurance as covered within the Property Damage “All Risks” Section of this Policy the Company will pay to the Policyholder the amount of Outstanding debit balances that they are unable to trace subject to the terms and Conditions of this Section and the General Exclusions limitations and Conditions of the Policy.


Version 2 [1_10_08]

Basis of Settlement This Insurance is limited to the loss sustained in respect of Outstanding debit balances directly due to the Damage and the amount payable shall not exceed 1 the difference between (a) the Outstanding debit balances and (b) the total of the amounts received or traced in respect thereof 2 the additional expenditure incurred with the prior written consent of the Company in

tracing and establishing customers’ Outstanding debit balances after the Damage provided that if the Sum Insured is less than the Outstanding debit balances the amount payable shall be proportionately reduced. NB Any adjustment implemented in current cost accounting shall be disregarded. Additional Conditions Automatic reinstatement:

The liability of the Company shall not be reduced by the amount of any payment provided that the Policyholder pays the appropriate additional premium calculated from the date of Damage to the date of expiry of the Period of Insurance.

Cessation of cover: This Section shall be avoided if the Business is wound up or

carried on by a liquidator or receiver or permanently discontinued at any time after the commencement of this Insurance unless accepted by the Company in writing.

Company’s liability: The liability of the Company in respect of any one loss in any

one Period of Insurance shall in no case exceed the amount shown in the Specification as the Sum Insured or such other sum or sums as may be substituted by endorsement signed by or on behalf of the Company.

Contribution: If at the time of loss any other insurance has been effected by or

on behalf of the Policyholder covering such indemnity by this Section of the Policy then the Company’s liability shall be limited to the Company’s rateable proportion of such loss.

Premium adjustment: The Policyholder shall submit to the Company within thirty days

of the expiry of the Period of Insurance the amount of the Outstanding debit balances as set out in the Policyholder’s accounts as at the end of each month or any other alternative method of adjustment as specified by the Company

If the amount of a monthly declaration exceeds the Sum Insured

applicable at the date of such declaration then for the purposes of this Condition only the Policyholder shall be deemed to have declared the Sum Insured.


Version 2 [1_10_08]


Any particulars or details contained in the Policyholder’s books of account or other Business books or records which may be required by the Company under the General Claims Conditions for the purpose of investigating or verifying any claim under this Section may be produced by professional accountants if at the time they are regularly acting as such for the Policyholder and their report shall be prima facie evidence of the particulars and details to which such report relates the Company will pay to the Policyholder the reasonable charges payable by the Policyholder to their Professional accountants for producing such particulars or details



It is a Condition precedent to liability of the Company that the Policyholder 1 shall keep all Business books or records in fire-resisting

safes or cabinets when not in use

Storage and duplicate records:

2 shall at the end of each calendar month keep duplicate

Business books or records in alternative premises other than in the Premises in which the original Business books or records are kept

3 in storing data and/or software and/or programs and

maintaining adequate back up copies of data and or programs on the following basis

the original disk or media shall be backed up and stored in

a fire resistant data safe or removed to another secure location away from the Premises with a further copy of the back up record made and kept in a fire resistant data safe or be maintained in a different secure location away from the Premises the data produced by the software and or programs shall be backed up at least once every seven days or any other period agreed by the Company.

Additional Coverage (The following Additional Coverage shall be subject otherwise to the terms Additional Exclusions and Conditions of this Section and the General Exclusions limitations and Conditions of the Policy) Temporary removal & transit:

The Insurance by this Section is extended to cover Damage to the Policyholder’s books of account or other Business books or records whilst temporarily at premises not in the occupation of the Policyholder or whilst in transit anywhere in the United Kingdom.


Version 2 [1_10_08]


Version 2 [1_10_08]

Terrorism Section Additional Definitions (The following Additional Definitions shall apply to the whole of this Section and that wherever these words appear within this Section starting with a capital letter shall bear the same meaning throughout this Section) The following definitions shall mean: Act of Terrorism: acts of persons acting on behalf of or in connection with any

organisation which carries out activities directed towards the overthrowing or influencing by force or violence of Her Majesty’s government in the United Kingdom or any other government de jure or de facto.

Denial of service attack: any actions or instructions constructed or generated with the

ability to Damage interfere with or otherwise affect the availability of networks network services network connectivity or information systems. Denial of service attacks include the generation of excess traffic and the generation of excess traffic into network addresses the exploitation of system or network weaknesses and the generation of excess or non-genuine traffic between and amongst networks.

Event: all individual losses arising in respect of a continuous period of

seventy-two hours of which the proximate cause is the same Act of Terrorism.

Hacking: unauthorised access to any computer or other equipment or

component or system or item that processes stores or retrieves data whether the property of the Policyholder or not.

Nuclear installation: any installation of such class or description as may be

prescribed by regulations made by the relevant Secretary of State from time to time by statutory instruments being an installation designed or adapted for

1 the production or use of atomic energy 2 the carrying out of any process that is preparatory or

ancillary to the production or use of atomic energy and which involves or is capable of causing the emission of ionising radiations or

3 the storage processing or disposal of nuclear fuel or of

bulk quantities of other radioactive matter being matter that has been produced or irradiated in the course of the production or use of nuclear fuel.

Nuclear reactor: any plant (including any machinery equipment or appliance

whether affixed to land or not) designed or adapted for the production of atomic energy by a fission process in which a controlled chain reaction can be maintained without an additional source of neutrons.


Version 2 [1_10_08]

Private individual: any person other than 1 a Trustee or body of Trustees where insurance is

arranged under the terms of a trust 2 a person who owns Residential property for the purposes

of their business as a sole trader The definition of Private individual shall also include two or

more persons where insurance is arranged in their several names and/or the title of the Policyholder includes the name of a bank or building society or other financial institution for the purpose of noting their interest in the Property insured.

Residential property: 1 houses and blocks of flats and other dwellings insured in

the name of a Private individual 2 household goods and personal effects of every

description. Territorial limits: England and Wales and Scotland but not the territorial seas

adjacent thereto as defined by the Territorial Sea Act 1987. Virus or similar mechanism:

program code programming instruction or any set of instructions intentionally constructed with the ability to Damage interfere with or otherwise adversely affect computer programs data files or operations whether involving self replication or not

The definition of virus or similar mechanism includes but is not

limited to Trojan horses worms and logic bombs. Cover (This Section is applicable to the Policyholder’s Business and Premises specified in the Schedule. The Property insured shall be that defined by other Sections of this Policy as stated in provisos 1 to 4 below and shall be subject to the terms and Additional Conditions of the relevant Section other than where expressly varied hereby) The Company agrees to cover loss or Damage occurring during the Period of Insurance to property or Business interruption loss resulting therefrom within the Territorial limits occasioned by or happening through or in consequence of any Act of Terrorism provided that the liability of the Company shall not exceed the relevant limit(s) or sum(s) insured stated within 1 the Property Damage “All Risks” Section (Building(s) and other property) 2 the Business Interruption Section 3 the Book Debts Section or any other limit stated in this Section.


Version 2 [1_10_08]

Additional Exclusions This Section does not cover 1 any loss or Damage whatsoever or any expenditure resulting or arising therefrom or any

consequential loss directly or indirectly caused by or contributed to by or arising from (a) the use of radioactive toxic explosion or other hazardous properties of any

explosive nuclear assembly or nuclear component thereof (b) ionising radiation or contamination by radioactivity or from any radioactive material (c) the release of chemical and/or biological and/or radiological irritants contaminants

or pollutants Exclusion 1 applies solely in respect of (a) in respect only of Residential Property insured in the name of a Private individual (b) any Nuclear installation or Nuclear reactor and all fixtures and fittings situated

thereon and attached thereto and all pipes wires cables drains or other conduits or service media of any description that are affixed or connected to or in any way serve such Nuclear installation or Nuclear reactor

2 any loss whatsoever directly or indirectly caused by or contributed to by or arising from or

occasioned by or resulting from riot or civil commotion war invasion act of foreign enemy hostilities (whether war be declared or not) civil war rebellion revolution insurrection or military or usurped power

3 any loss whatsoever directly or indirectly caused by or contributed to by or arising from or

occasioned by or resulting from (a) Damage to any computer or other equipment or component or system or item

which processes stores transmits or receives data or any part thereof whether tangible or intangible (including but without limitation any information or programs or software) and whether the property of the Policyholder or not where such Damage is caused by Virus or similar mechanism or Hacking or Denial of service attack or

(b) consequential loss directly or indirectly caused by or arising from Virus or similar mechanism or Hacking or Denial of service attack.

Additional Conditions Adjustable premiums: Any terms in the Policy which provide for adjustments of

premium based upon declarations on expiry or during the Period of Insurance does not apply to this Terrorism Insurance.

Automatic reinstatement:

Any provision within this Policy that provides for any limit(s) or sum(s) insured to be automatically reinstated following a loss shall apply to this Terrorism Section but subject to the Policyholder undertaking to pay the appropriate additional premium as may be required for such reinstatement.

Burden of proof: If the Company alleges that any loss Damage cost or expense is

not covered by this Section the burden of proving the contrary shall be upon the Policyholder.


Version 2 [1_10_08]

Further claims procedure:

Any claim or proceedings or any loss Damage or Business interruption which might give rise to a claim must be notified immediately to the Company in writing. A detailed statement of any claim must be submitted within thirty days of the happening of any loss Damage or Business interruption or such further time as the Company may in writing allow.

Long term agreement: Any long term undertaking applying to the Policy shall not apply

to this Terrorism Section. Period of Insurance: It is understood that the Period of Insurance shall be as stated in

the Schedule and shall not exceed twelve months for any one period.

www.tokiomarine.co.uk

Member of the Association of British InsurersAuthorised and regulated by the Financial Services Authority Firm Reference Number 202574Registered Office: 150 Leadenhall Street, London EC3V 4TE Registered Number: 989421 England

Recycled

Guaranteed Chlorine free paper

Supporting responsibleuse of forest resources

policy - home | st giles insurance & finance · company: tokio marine europe insurance limited...

Documents