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Motor Trade Combined InsurancePolicy document

Document of motor trade combined insurance

1Document of motor trade combined insurance Document of motor trade combined insurance

WELCOME TO LV=

Thank you for choosing to purchase an LV= Insurance policy.Your policy is underwritten by Highway Insurance, part of the Liverpool Victoria group of companies. Founded in 1843 Liverpool Victoria, which also trades as LV=, is the UK’s largest friendly society and together with its subsidiaries is a major provider of insurance and financial services products.

As a friendly society and mutual, LV= exists wholly for the benefit of its members. We have no shareholders taking a share of our profits. Instead we invest our profits in making our products competitive and delivering an outstanding customer service.

Our claims service goes the extra mile. Committed to doing the right thing for our policyholders, we will aim to settle claims quickly, even in the most difficult circumstances.

If you would like to learn more about LV= please visit our website at: www.LV.com/commercial

John O’Roarke Managing Director Liverpool Victoria Insurance Company Limited

2 Document of motor trade combined insurance

CONTENTS

Definitions 4General Conditions including Cancellation 11General Exclusions 15

Section 1 – Material Damage 17Insurable Perils 17Additional Covers 20Extensions to Section 1 26Clauses 30Basis of Settlement Clauses 31Exclusions 34Conditions 34

Section 2 – Business Interruption 39Clause 39Basis of Settlement Clauses 39Extensions to Section 2 41Exclusions 43Conditions 43Additional Cover 44

Section 3 – Business Money and PersonalAccident (Assault) 45Business Money Sub-Section 45Extensions 45Conditions 46Exclusions 47Personal Accident (Assault) Sub-Section 47Exclusions 47Conditions 48Extensions 48General Conditions 48

Section 4 – Wrongful Conversion 49

Section 5 – Loss of MOT Licence 50 Basis of Cover 50Definition 50Condition 50Exclusions 50

Section 6 – Engineering Inspection 51Section Definitions 51Inspecting Authority’s Services 53

Section 7 – Employers’ Liability 56Limit of Indemnity 56Section Definition 56Extensions to Section 7 56Additional Cover 57Exclusions 57Conditions 57

Section 8 – Public and Products Liabilityand Defective Workmanship 59

Sub-Section A – Public and Products Liability 59Limit of Indemnity 59Conditions 59Definition 59Extensions 59Exclusion 61

Sub-Section B - Defective Workmanship 62Definitions 62Interpretations 62Limit of Indemnity 62Conditions 63Exclusions 63Excess 63Additional Cover Extensions 63

Exclusions applying to Sub-Section Aand Sub-Section B 65Conditions applying to Sub-Section Aand Sub-Section B 66

Section 9 – Legal Expenses 68Section Definitions 68Sub-Section A – Contract Disputes 70Sub-Section B – Criminal Prosecution 70Sub-Section C – Employment Disputes 71Sub-Section D – Tax Protection 71Sub-Section E – Property Disputes 72Sub-Section F – Data Protection 73Sub-Section G – Statutory Licence 73Sub-Section H – Personal Injury 73Sub-Section I – Wrongful Arrest Defence 73Sub-Section J – Jury Service Allowance 73Sub-Section K – Pension Trustee Defence 73Exclusions to Section 9 73Legal Expenses Claims Conditions 74

Section 10 – Terrorism 79Definitions 79Exclusions 80Conditions 80

Section 11 – Road Risks 81Definitions 81Sub-Section 1 – Accidental Damage 81Sub-Section 2 – Liability to Third Parties 84Sub-Section 3 – Legal Costs 86Sub-Section 4 – Emergency Treatment 86Sub-Section 5 -– Foreign Use 86Sub-Section 6 – Unauthorised Use 86Sub-Section 7 – Car Sharing 86

General Claims Conditions 88

Important Informationand How to Make a Claim 90


MOTOR TRADE COMBINED INSURANCE POLICY

Highway Insurance Company Limited (the Insurer) will provide the insurance described in the Policy subject to its terms and conditions for the Period of Insurance stated in the Schedule and any subsequent period for which the Insured shall pay and the Insurer shall agree to accept the premium. Any information supplied by or on behalf of the Insured shall be incorporated in the contract.

The Policy the Schedule the Proposal Form and/or Statement of Fact and any endorsements shall be read together as one contract and this is the contract of Insurance between the Insured and the Insurer.

It is therefore essential that the Proposal Form and/or Statement of Fact and Schedule are accurate and true to the best of the Insured’s knowledge and belief. If the Proposal Form and/or Statement of Fact and/or Schedule are inaccurate or untrue it may affect the Insured’s rights under the Policy.

Any word or expression to which a specific meaning has been given shall have that meaning wherever it appears.

If the Proposal Form and/or Statement of Fact and/or Schedule are incorrect you should notify the Broker, Intermediary or Agent who arranged the Policy immediately.

You must ensure that all documentation in your possession is accurate.

The Policy has been signed on behalf of Highway Insurance Company Limited.

John O’Roarke

Managing Director Liverpool Victoria Insurance Company Limited


DEFINITIONS

Book DebtsThe total amount of the outstanding debit balances in customers’ credit accounts including hire purchase and credit sales accounts at the date of the Damage adjusted for bad debts

Building(s)The Building or Buildings at the risk address(es) stated in the Schedule includinga) outbuildings attached to or detached from the main Buildingb) walls gates and fences around the Buildings and belonging to themc) landlord’s fixtures and fittingsd) car parks yards paved areas roads pavements and footpathsall belonging to the Insured or for which the Insured is legally responsible

BusinessThe Business specified in the Schedule conducted solely from within the Territorial Limits includinga) the ownership repair and maintenance of the Premisesb) the provision of fire security and ambulance services at the Premisesc) the provision of first aid but excluding any first aid provided by any qualified medical practitioner or nursed) private work undertaken by the Insured’s Employees with the consent of the Insured for any director partner or

senior official of the Insurede) the provision and management of sports social and welfare organisations by the Insured for the benefit of the

Insured’s Employeesf) the sale or supply of food and drink to Employees or visitors

Business HoursThe period during which the Premises are actually occupied by the Insured and/or their Employees for Business purposes

ComputersAll equipment including interconnected wiring fixed disks and telecommunications equipment used at the Premises for the storage and communication of electronically processed data but excluding a) mobile devices where the sole or primary function of the item is to make send and receive telephone calls and

SMS messages b) any equipment controlling any manufacturing process belonging to the Insured or leased hired or rented to the Insured and for which the Insured is legally responsible

Computer RecordsAll current and backup Computer Records excluding fixed disks and paper records of any description incorporating stored programs and information stored on them belonging to the Insured or leased hired or rented to the Insured and for which the Insured is legally responsible

Consequential LossLoss resulting from interruption or interference with the Business carried on by the Insured at the Premises in consequence of Damage

Customers’ GoodsProperty (not being Motor Vehicles) held in the custody or control of the Insured including the contents of Customers’ Vehicles (unless otherwise more specifically insured) for which the Insured has accepted responsibility

Customers’ VehiclesAny Motor Vehicle (not being vehicles temporarily on site for fuel sales or similar passing trade) held in the custody or control of the Insured for which the Insured has accepted responsibilityCustomers’ Vehicles also includes any vehicles privately owned by any Director Partner Employee or relative of the Insured or hired to them under a hire purchase agreement where such vehicle is in the custody or control of the Insured for sale repair testing servicing maintenance cleaning or inspection

DamageLoss destruction of or damage to the Property insured


DEFINITIONS CONTINUED

Declared ValueThe Insured’s assessment of the cost of reinstatement of the Buildings Plant Machinery and Trade Fixtures and Tenants’ Improvements insured at the level of costs applying at the inception of the Period of Insurance including the extent to which indemnity is provided for a) the additional cost of reinstatement to comply with Public Authority requirementsb) professional feesc) removal of debris costsignoring inflationary factors which may operate subsequently

Denial of Service AttackAny 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 including but not limited to 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

Employee (not applicable to Section 9 – Legal Expenses)a) Any person under a contract of service or apprenticeship with the Insured orb) any of the following persons whilst working for the Insured in connection with the Business i. any labour master or labour only subcontractor or person supplied by them ii. any self employed person providing labour only iii. any trainee or person undergoing work experience iv. any voluntary helper v. any person who is hired to or borrowed by the Insured

Estimated Gross ProfitThe amount the Insured has declared to the Insurer as representing the Gross Profit anticipated to be earned by the Business during the financial year most nearly concurrent with the Period of Insurance or a proportionately increased multiple where the Maximum Indemnity Period exceeds 12 months

ExcessThe amount for which the Insured is responsible for each and every claim or loss as specified in the Schedule or in the Policy

Goods in TransitStock in Trade Portable Hand Tools Plant Machinery and Trade Fixtures and specified Stock Items as stated in the Schedule belonging to or the responsibility of the Insured whilst beinga) loaded on or in a Vehicle belonging to or in the custody or control of the Insuredb) carried by a Vehiclec) temporarily contained on or in a Vehicle whilst parked or stationary or within a secure storage location for a

continuous period of no more than 48 hoursd) unloaded off or from a Vehicle but excluding positioning installation commissioning or erection once it has been

unloaded

Gross ProfitThe amount by which the sum of the Turnover and the amount of the closing Stock in Trade shall exceed the sum of the amount of the opening Stock in Trade and the amount of the Specified Working Expenses

HackingUnauthorised access to any computer or other equipment or component or system or item which processes stores transmits or retrieves data whether the property of the Insured or not

Increased Cost of WorkingThe additional expenditure incurred with the prior written consent of the Insurer for the sole purpose of avoiding or diminishing the reduction in Turnover which but for that expenditure would have taken place during the Indemnity Period



Indemnity PeriodThe period beginning with the occurrence of the Damage and ending not later than the Maximum Indemnity Period as stated in the Schedule afterwards during which the results of the Business shall be affected in consequence of the Damage

InjuryBodily injury death illness or disease

InsuredThe person persons or company named in the Schedule including subsidiary companies notified to and agreed as accepted by the Insurer

Insured PerilsThose Insurable Perils which are operative as stated in the Schedule subject always to the terms conditions and exclusions applying to the Insurable Peril and of Section 1 and the Policy

Insured’s VehiclesAny Motor Vehiclei. the property of the Insured ii. or in the custody or control of the Insured for retail sale including those leased in or on consignment from

manufacturers or distributors or on commission for which the Insured is responsibleThe Insured’s Vehicles do not include vehiclesa) that are not proven to be an asset of the Business. In the event of a loss the Insured will be required to provide

evidence that the vehicles are assets of the Business other than those which have been previously noted and agreed by the Insurer

b) that are privately owned by any Director Partner Principal Employee or relative of the Insured or hired to them under a hire purchase agreement unless disclosed to and agreed by the Insurer in writing

c) whilst out on loan hire or unaccompanied demonstration unless otherwise agreed by the Insurer and stated on the Schedule

InsurerHighway Insurance Company Limited or any other Insurer authorised by Highway Insurance Company Limited to act on their behalf

Intruder Alarm SystemAll the component parts of the alarm and including devices used to transmit or receive signals

KeyholderThe Insured or any person or company authorised by the Insured who has been fully trained in the operation of the Intruder Alarm System including but not limited to the setting and unsetting of the system and is available at all times to accept notification of faults or alarm signals relating to the Intruder Alarm System and to attend and allow access to the Premises

Legal CostsAll costs and expenses incurred with the prior written consent of the Insurer in addition to claimant’s costs and expenses for which the Insured is legally liable

Loss of Limbs or EyesPhysical Injury which solely and directly results ina) total loss or permanent and total loss of use of one or more limbs orb) total and irrecoverable loss of all sight in one or both eyes

Maximum Indemnity PeriodThe number of Months stated in the Schedule as applying to the Indemnity Period



MoneyCash bank currency notes uncrossed cheques uncrossed postal orders and money orders unused postage stamps National Insurance stamps trading stamps luncheon vouchers lottery and other prize scratch cards utility vouchers top up cards mobile phone vouchers and International Phone Cards held in connection with the Business belonging to the Insured or for which the Insured is legally liable

Motor VehicleAny vehicle including accessories plant and equipment fixed thereto including a) any vehicle (mechanically propelled or otherwise) attached for the purpose of being towed by or being transported

on an Motor Vehicle b) any trailer c) caravan agricultural implement or small craft

Non-Negotiable MoneyCrossed cheques crossed girocheques crossed bankers drafts crossed giro drafts crossed postal and crossed money orders national savings certificates premium bonds unexpired units in franking machines stamped national insurance cards credit card sales vouchers debit card sales vouchers VAT purchase invoices held in connection with the Business belonging to the Insured or for which the Insured is legally liable

Notifiable Human DiseaseAn illness sustained by any person caused bya) food or drink poisoningb) any human infectious or contagious diseasean outbreak of which the competent local authority has stipulated shall be notified to them

Offshore Installationa) any installation in the sea or tidal waters which is intended for underwater exploitation of mineral resources or

exploration with a view to such exploitationb) any installation in the sea or tidal waters which is intended for the storage or recovery of gas or generation of

electricityc) any pipe or system of pipes in the sea or tidal watersd) any accommodation installation for persons who work on or from the locations specified above

Permanent Total DisablementPhysical Injury not resulting in death or Loss of Limbs or Eyes which results in the permanent inability of the Insured or Employee to engage in any gainful employment

Physical InjuryBodily injury by external violent and visible means sustained by the Insured or Employee in the course of the Business where such injury arises directly from assault

Plant Machinery and Trade Fixturesa) machinery plant fixtures fittings tools and other trade equipment including fixed fuel installations and their

storage tanksb) vending machines (but not the contents of the machine or any cash therein)c) all office equipment and other contents including Computersd) patterns models moulds plans and designse) documents manuscripts and business books but only for the value of the materials as stationery together with

the cost of clerical labour expended in writing up and not for the value to the Insured of the information contained therein

f) directors’ partners’ visitors’ and Employees’ personal effects in so far they are not otherwise insured for an amount not exceeding £1,000 per person and

all the property of the Insured or held by them in trust for which they are responsible but excluding Motor Vehicles Portable Hand Tools and Computer Records



Pollution or Contaminationa) all Pollution or Contamination of buildings or other structures or of water or land or the atmosphere andb) all Injury loss or damage directly or indirectly caused by such Pollution or ContaminationAll Pollution or Contamination which arises out of one incident shall be deemed to have occurred at the time such incident takes place

Portable Hand ToolsPortable hand tools (including hand held electronic vehicle diagnostic equipment) used in connection with the Business belonging to the Insured and Employees for which the Insured has accepted responsibility and are not more specifically insured Subject to a maximum for any one loss of £2,500 for any one tool and £10,000 for any one director partner or Employee

PremisesThe Buildings and the land inside the boundaries at the risk address stated in the Schedule

PrincipalAny person firm company ministry or authority for whom the Insured is undertaking work

Products SuppliedAny goods or other property including containers packaging labelling and instructions for use sold supplied delivered erected repaired serviced altered treated installed processed manufactured or tested by the Insured in connection with the Business

Propertya) Buildings Plant Machinery and Trade Fixtures Tenants’ Improvements Portable Hand Tools Customers’ Goods

Customers’ Vehicles Insured’s Vehicles Computer Records Stock in Trade and specified Stock Items as stated in the Schedule and in respect of Section 1 of the Policy such other Items to which cover is expressly extended in Section 1 of the Policy or Schedule or

b) in respect of Section 9 of the Policy land and/or Buildings owned or occupied by the Insured or otherwise for which the Insured is legally responsible

The Insurer agrees to accept the classification under which any Property has been entered in the books of the Insured

Rate of Gross ProfitFor the purpose of a new business that has not yet been trading 12 months The Rate of Gross Profit earned on the Turnover during the period between the date of commencement of the Business and the date of the DamageFor all other businesses The Rate of Gross Profit earned on the Turnover during the financial year immediately before the date of the Damage

RentThe money paid or payable by the Insured for accommodation and services provided (including service charges unless excluded by Endorsement) at the Premises

Rent ReceivableThe money paid or payable to the Insured by tenants or lessees for accommodation and services provided in the course of the Business at the Premises

Safe/StrongroomAn item being of substantial construction with key and /or combination locks and manufactured for the secure storage of Money or Non-Negotiable MoneyThis does not include cash boxes tills filing cabinets or any item constructed of sheet metal whether lockable or not



Shop FrontThe windows doors frames signs external blinds and walling all forming part of the front of the Building

Solicitors’ FeesSolicitors’ Fees for the representation of the Insured at any Coroner’s Inquest or Fatal Accident Inquiry or at proceedings in any court of summary jurisdiction in respect of any occurrence which may be the subject of indemnity under Sections 7 and 8

Specified Working ExpensesThe total ofa) purchases less discounts receivedb) discounts allowedc) carriage freight and packaging andd) bad debts

Standard Rent ReceivableThe Rent Receivable during the period immediately before the date of the Damage which corresponds with the Indemnity Period

Standard TurnoverFor the purpose of a new business that has not yet been trading 12 months The proportional equivalent for a period equal to the Indemnity Period of the Turnover realised during the period between the commencement of the Business and the date of the DamageFor all other businesses The Turnover during the period immediately before the date of the Damage which corresponds with the Indemnity Period

Stock in TradeStock in trade items incidental to the Business (not being Motor Vehicles) the property of the Insured or held in trust or on commission for which the Insured is responsible

Temporary Total DisablementPhysical Injury which results in the temporary inability of the Insured or Employee to engage in any gainful employment

Tenants’ ImprovementsAll improvements alterations and decorations effected by or on behalf of the Insured as occupier of the Premises

Territorial LimitsGreat Britain Northern Ireland the Isle of Man or the Channel Islands

TerrorismActs 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

Trade ValueThe cost to replace the Insured’s Vehicles is limited to the price the Insured would pay at the time of damage to buy a replacement vehicle of equivalent quality and specification with the intention of selling it for a profit at a later date

TurnoverThe money paid or payable to the Insured for Products Supplied and services rendered in the course of the Business



UnoccupiedAny Building or part of any Building which is empty or not in use by the Insured or any tenant of the Insured for more than 30 consecutive days

Virus or Similar MechanismProgram 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 including but not limited to trojan horses worms and logic bombs


GENERAL CONDITIONS

1) Misrepresentation

If the Insured or anyone representing the Insured

nn provides the Broker Intermediary or Agent who arranged the Policy or the Insurer with misleading or incorrect information when applying for amending or renewing this insurance

nn deliberately and/or recklessly withholds information or misleads the Broker Intermediary or Agent who arranged the Policy or the Insurer in order to obtain cover or gain a cheaper premium or more favourable terms

nn provides the Broker Intermediary or Agent who arranged the Policy or the Insurer with false documents

The Insurer may

nn amend the Insured’s Policy to record the correct information

nn provide different terms with effect from the date of the misrepresentation and amend the Insured’s Policy to record the correct information. Where different terms are applied which results in an additional premium the Insured shall be liable to pay for such additional premium from the date of the misrepresentation

nn cancel the Insured’s Policy in accordance with General Condition 6) Cancellation

nn void the Insured’s Policy and treat it as if it had never existed and return the premium paid other than in circumstances of

i. deliberate and /or reckless misrepresentation where no premium shall be returned by the Insurer

ii. where the Insured has made claims under the Policy then

– any sums that have been paid by way of benefit under the Policy will be deducted from any return premium due to the Insured or

– in the event that the premium paid does not exceed the sums paid by way of benefit under the Policy the Insured will be responsible for reimbursing the Insurer the difference

nn in addition to voiding the Insured’s Policy the Insurer may also void any other policies which the Insured has with the Insurer and return the premium paid for such policies except in the circumstances where

i. deliberate and/or reckless misrepresentation has also occurred on these policies or

ii. claims have also been made on these policies

in these circumstances no premium shall be returned by the Insurer

2) Fraud

If the Insured or anyone representing the Insured

nn makes a fraudulent payment by bank account and/or card

nn provides the Broker Intermediary or Agent who arranged the policy or the Insurer with false documents or false statements to support a claim

nn makes a claim or part of any claim that is fraudulent, false or exaggerated

The Insurer may

nn cancel the Insured’s policy and not return any premium paid by the Insured in accordance with General Condition 6) Cancellation

nn reject a claim or reduce the amount of payment that would have been paid

nn recover from the Insured any sums paid by way of benefit under the Policy in respect of any claim or part of any claim that is fraudulent, false or exaggerated

nn pass details to fraud prevention and law enforcement agencies who may access and use this information


GENERAL CONDITIONS CONTINUED

3) Reasonable Care

The Insured shall

a) take all reasonable precautions to prevent or diminish loss destruction damage or injury

b) take all reasonable steps to comply with statutory requirements obligations and regulations imposed by any authority

c) exercise care in the selection and supervision of Employees

d) maintain all Buildings ways works machinery and plant in sound condition

As soon as possible after discovery of any defect or danger the Insured shall cause such defect or danger to be made good or remedied and in the meantime shall cause such additional precautions to be taken as the circumstances may require

4) Alteration

This Policy shall cease to be in force from the date of the alteration if

a) any alteration is made either in the Business or at the Premises or to any Property insured after the commencement of the insurance that increases the risk of loss destruction damage or injury or

b) the Insured’s interest ceases except by will or operation of law or

c) the Business is wound up or carried on by a liquidator or receiver or permanently discontinued or

d) the Premises become Unoccupied

unless the Insurer has agreed in writing to accept such alteration

5) Payment of Premium

It is a condition precedent to the Insurer’s liability that

a) the premium for the Policy or any endorsement attaching to the Policy shall be paid when due

b) if the premium for the Policy or endorsement is payable by instalments then

i. each instalment shall be paid when due or

ii. where a notice has been issued requiring the outstanding amount must be paid by a specific date then such payment is made by that date

6) Cancellation

a) Cancellation by the Insured

i. Cooling off cancellation rights

The Insured has the right to cancel the insurance from inception within 14 days of the receipt of the documents at the start of the insurance (“the cooling off period”) if the cover does not meet their requirements by returning all documents and any certificate to the Broker Intermediary or Agent who arranged the Policy

The Insurer shall return any premium paid in full within 30 days of the receipt of the notice of cancellation from the Broker Intermediary or Agent if the cover is cancelled either

a) before the inception date or

b) within the 14 day cooling off period provided that no claim has been made or incident advised that could give rise to a claim in these circumstances no return of premium will be made

ii. Cancelling the Policy after the cooling off period

The Insured may cancel the insurance at any other time by contacting the Broker Intermediary or Agent who arranged the Policy



On receipt of the notification from the Broker Intermediary or Agent the Insurer will cancel the Policy and provide a proportionate return of the premium in respect of the unexpired period of insurance provided that no claim has been made or incident advised that could give rise to a claim in these circumstances no return of premium will be made

b) Cancellation by the Insurer

i. Non-payment of Premium

If the Insurer has not received the premium in accordance with the terms of Condition 5) Payment of Premium the Insurer will cancel the Policy by giving 7 days’ notice in writing by letter to the Insured at the Insured’s last known address

The insurance will end immediately the 7 days’ notice runs out

If the Insured has just incepted the Policy or renewed the Policy with the Insurer and the premium is unpaid then the Insurer will cancel the insurance from the inception or renewal date

ii. Cancellation for any other reason

The Insurer may cancel the Policy or any section or endorsement by giving 7 days’ notice in writing by letter to the Insured at the Insured’s last known address

The Insurer does not have to give a reason for the cancellation although valid reasons for doing so may include but are not limited to the following

– the Insured has not provided to the Broker Intermediary or Agent the information or documents the Insurer has requested as part of the terms and conditions in providing the insurance

– the Insured has not met the terms and conditions contained in this document of insurance including those shown on their schedule

– where the Insured does not comply with any of the different policy terms and conditions imposed by the Insurer as a result of the identification of misrepresentation as detailed in General Condition 1) Misrepresentation

– where an alteration is made to the Business the Premises or the Property or where the Insured’s interest ceases unless agreed by the Insurer as detailed in General Condition 4) Alteration

– where the survey arranged by the Insurer has identified additional risks which were not evident to the Insurer prior to the survey or where the Insured have not complied with the Insurer’s acceptance criteria nor with the timely completion of any risk improvements as detailed in General Condition 10) Subject to Survey

– The Insured has behaved in a manner that makes it inappropriate for the Insurer to continue the insurance, e.g. the Insured harassing or showing abusive or threatening behaviour towards the Insurer’s staff or the Insurer’s appointed representatives

The insurance will end immediately the 7 days’ notice runs out

If the Insured has just incepted the Policy or renewed the Policy with the Insurer and the premium is unpaid then the Insurer will cancel the insurance from the inception or renewal date

The Insurer will provide a proportionate return of premium in respect of the unexpired period of insurance of the Policy or Section other than in circumstances listed below

a) where the Insurer identifies fraud as detailed in General Condition 2) Fraud

b) where a claim has been made or incident advised that could give rise to a claim

in these circumstances no premium shall be returned by the Insurer



7) Choice of Law and Language

Both parties to this contract have a choice as to which law should be applied. In the absence of written agreement to the contrary English law applies to this contract

All communications will be in English

8) Observance of Terms

It is a condition precedent to the Insurer’s liability that the Insured shall observe the terms of the Policy so far as they relate to anything to be done or complied with

9) Legal Representatives

In the event of the death of the Insured the Insurer will indemnify the Insured’s legal personal representatives in respect of liability at law previously incurred by the Insured provided they observe fulfil and be subject to the terms conditions and limitations of the Policy to the extent that they can apply

10) Subject to Survey

If any insurance by the Policy either at inception or subsequent renewal has been granted subject to the completion of a survey of the Premises or if during the Period of Insurance following notification of a claim or an alteration to the Business or the Premises or to any Property under the Policy the Insurer requires a survey

a) then pending completion of such survey the terms conditions exclusions and limits as specified in the Policy and Schedule shall apply

b) if following completion of the survey and in the opinion of the Insurer this has identified additional risks which were not evident to the Insurer prior to the survey then the Insurer reserves the right to alter or amend the terms and conditions of the Policy or to suspend or withdraw cover immediately

c) the continuation of cover after the survey by the Insurer shall be subject to the Insured complying with the Insurer’s acceptance criteria and the completion of any risk improvements required within the time frame agreed with the Insurer otherwise the Insurer may at its option invoke the Cancellation Condition

11) Limit of Indemnity

All the Sums Insured Limits of Indemnity and any other restrictions on the amount of the Insurer’s liability stated in the Policy shall apply as maximum limits to the Insurer’s liability irrespective of the number of persons entitled to indemnity under the Policy

For the purposes of the Sums Insured Limits of Indemnity and any other restrictions on the amount of the Insurer’s liability the Insured and all other persons entitled to be indemnified under the Policy shall be treated as one party or legal entity so that there shall be only a single contract of insurance between the Insurer as one party and the Insured and all other persons entitled to be indemnified as the other party

12) Third Party Rights

A person or company who is not a party to the Policy has no right under the Contracts (Rights of Third Parties) Act 1999 to enforce any clause or term of the Policy but this does not affect any right or remedy of a third party which exists or is available apart from that Act

The Insured shall not assign or transfer their rights under the Policy without the written agreement of the Insurer

13) Insured’s Contribution

Where stated in the Schedule the Insured shall be responsible for paying an Excess in relation to each claim made by the Insured under this Policy

14) Motor Insurance Database

It is a condition of the Policy that the Insured supply directly to the Motor Insurers’ Information Centre details of the Motor Vehicles whose use is covered by the Policy as required by the relevant law applicable in Great Britain and Northern Ireland for entry onto the Motor Insurance Database


GENERAL EXCLUSIONS

This Policy does not cover

1) War Government Action Radioactive Contamination and Sonic Bangs

Damage to any property whatsoever or any loss or expense whatsoever resulting or arising therefrom or any Consequential Loss or any legal liability of whatsoever nature directly or indirectly caused by or contributed to by or arising from

a) war invasion act of foreign enemy hostilities (whether war be declared or not) civil war rebellion revolution insurrection or military or usurped power

b) nationalisation confiscation requisition seizure or destruction by the government or any public authority

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

d) the radioactive toxic explosive or other hazardous properties of any explosive nuclear assembly or nuclear component thereof

e) pressure waves caused by aircraft and other aerial devices travelling at sonic or supersonic speeds

2) Terrorism and Civil Commotion

Damage to any Property whatsoever or any loss or expense whatsoever resulting or arising therefrom or any Consequential Loss directly or indirectly caused by or contributed to by or arising from

a) Terrorism

b) civil commotion in Northern Ireland

In any action suit or other proceedings where the Insurer alleges that by reason of this Exclusion as far as it relates to Terrorism any Damage or resulting loss or expense or Consequential Loss is not covered by the Policy the burden of proving that such Damage loss expense or Consequential Loss is covered shall be upon the Insured

3) Date Recognition

Damage or Consequential Loss of whatsoever nature or liability for damages attaching to the Insured or any associated costs relating thereto arising directly or indirectly from or consisting of the failure or inability of any

a) computer data processing equipment microchip integrated circuit or any similar device or any computer software or computer firmware

b) media or systems used in connection with any of the above

whether the property of the Insured or not

i. to recognise correctly any date as its true calendar date

ii. to 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

but

a) in respect of Section 1 and Section 2 this shall not exclude subsequent Damage not otherwise excluded which itself results from the Insured Perils

b) this exclusion shall not apply to Section 7

4) Marine Policies

Damage to Property which at the time of the happening of the Damage is insured by or would but for the existence of this Policy be insured by any marine policy or policies except in respect of any excess beyond the amount which would have been payable under the marine policy or policies had this Policy not been effected


GENERAL EXCLUSIONS CONTINUED

5) Computer Virus

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 Insured or not where such damage is caused by Virus or Similar Mechanism or Hacking or Denial of Service Attack or Consequential Loss directly or indirectly caused by or arising from Virus or Similar Mechanism or Hacking or Denial of Service Attack

6) Illegal Deliberate and Criminal Activities

Damage or Consequential Loss of whatsoever nature or liability for damages attaching to the Insured or any associated costs relating thereto arising directly or indirectly from

a) damage or liability caused as a result of the Premises being used for illegal activities by the Insured

b) deliberate or criminal acts by the Insured


SECTION 1 – MATERIAL DAMAGE

In the event of Damage to Property insured at the Premises from an Insured Peril during the Period of Insurance the Insurer will indemnify the Insured for the loss or amount of Damage or at its option replace or reinstate such Property in accordance with the provisions of the Policy and provided that during the Period of Insurance the liability of the Insurer under this Section shall not exceed the lesser of

a) in respect of any item its Sum Insured or Limit stated in the Policy or the Schedule at the time of the Damage

b) the Sum Insured or Limit remaining after deduction for any other Damage in the same Period of Insurance unless the Insurer has agreed to reinstate any such Sum Insured or Limit

In addition the Insurer will indemnify the Insured in respect of loss of Rent as a result of Damage to the Premises from an Insured Peril during the Period of Insurance rendering the Buildings uninhabitable provided that the liability of the Insurer shall not exceed the lesser of

a) the Rent Sum Insured stated in the Schedule at the time of Damage

b) the Rent payable for the period the Buildings are uninhabitable

Insurable PerilsThe following are the Insurable Perils operative as Insured Perils if stated in the Schedule

1) Fire

Excluding Damage caused by

a) its own spontaneous fermentation or heating or its undergoing any heating process or any process involving the application of heat

b) explosion resulting from fire

2) Lightning

3) Explosion

Excluding Damage caused by the bursting by steam pressure of a boiler economiser or other vessel machine or apparatus in which internal pressure is due to steam only belonging to or under the control of the Insured

However this exclusion does not apply to Damage caused by the explosion of any boiler or gas used only for domestic purposes

4) Aircraft or other aerial devices or articles dropped from them

5) Earthquake and subterranean fire

6) Riot civil commotion strikers locked out workers persons taking part in labour disturbances or malicious persons

Excluding Damage

a) arising from cessation of work or due to confiscation nationalisation seizure requisition or destruction by order of the government or any public authority

b) by theft or attempted theft

c) whilst any Building is Unoccupied

7) Theft or attempted theft involving entry to or exit from the Buildings at the Premises by forcible and violent means or actual or threatened hold up assault or violence

Excluding

a) loss from any structure which is incapable of being locked

b) Damage

i. in respect of Property in the open other than Customers’ Vehicles and Insured’s Vehicles

ii. whilst any Building is Unoccupied

iii. in respect of Stock in Trade and specified Stock Items as stated in the Schedule at exhibitions that is not contained in an indoor exhibition hall which is locked and/or guarded outside business hours

c) theft or attempted theft by Employees


SECTION 1 – MATERIAL DAMAGE CONTINUED

8) Storm

Excluding Damage

a) caused by frost subsidence ground heave or landslip

b) attributable solely to change in the water table level

c) to fences gates and moveable Property (other than Customers’ Vehicles and Insured’s Vehicles) in the open or in open fronted or open sided Buildings

9) Flood

Excluding Damage

a) caused by frost subsidence ground heave or landslip

b) attributable solely to change in the water table level

c) to fences gates and moveable Property (other than Customers’ Vehicles and Insured’s Vehicles) in the open or in open fronted or open sided Buildings

10) Impact by

a) any road vehicles or animals

b) falling trees or boughs

c) breakage or collapse of aerials or satellite dishes

Excluding Damage by lopping pruning or felling of trees

11) Escape of water from any tank apparatus or pipe or escape of oil from any fixed oil-fired heating installation

Excluding Damage

a) by water discharged or leaking from any automatic sprinkler installation

b) whilst any Building is Unoccupied

c) caused by subsidence ground heave or landslip

d) for subsidence ground heave or landslip caused by the escape of water

12) Accidental escape of water from any automatic sprinkler installation

Excluding Damage occasioned by or attributable to

a) heat caused by fire

b) freezing whilst any Building is Unoccupied

c) repairs alterations or extensions to the Buildings and/or sprinkler installations

13) Accidental damage

Excluding Damage

a) caused by any other Insurable Peril

b) to a Building or structure caused by its own collapse or cracking

c) to Property insured caused by Pollution or Contamination other than Damage caused by

i. Pollution or Contamination which itself results from an Insured Peril

ii. an Insured Peril which itself results from Pollution or Contamination

d) to Property resulting from its undergoing any process of production packing treatment testing commissioning servicing adjustment or repair



e) to Property insured caused by or consisting of

i. inherent vice latent defect gradual deterioration wear and tear frost or change in water table level

ii. its own faulty or defective design or materials

iii. faulty or defective workmanship operational error or omission on the part of the Insured or any of their Employees

but this shall not exclude subsequent Damage which results from a cause not otherwise excluded

f) caused by

i. corrosion rust wet or dry rot shrinkage evaporation loss of weight dampness dryness marring scratching

ii. scratching tearing or fouling by pets or domesticated animals

iii. vermin or insects

iv. change in temperature colour flavour texture or finish

v. joint leakage failure of welds cracking fracturing collapse or overheating of boilers economisers superheaters pressure vessels or any range of steam and feed piping connected to them

vi. mechanical or electrical breakdown or derangement in respect of the particular machines apparatus or equipment in which the breakdown or derangement originates overrunning or electrical surges or spikes in electricity

but this shall not exclude such Damage not otherwise excluded which itself results from any other accidental damage or subsequent Damage which itself results from a cause not otherwise excluded

g) caused by disappearance unexplained or inventory shortage misfiling or misplacing of information

h) caused by acts of fraud or dishonesty

i) occasioned by delay embargo nationalisation confiscation requisition seizure or destruction by the government or any public authority

j) caused by electrical or magnetic disturbance or erasure of electronic records

14) Subsidence ground heave or landslip

Excluding Damage

a) to outbuildings yards pipes cables wires ducting car parks roads pavements walls gates fences swimming pools tennis courts and children’s play areas unless the structure of the main building or buildings at the risk address stated in the Schedule is also affected at the same time by the same cause

b) to solid floor slabs or Damage resulting from their movement unless the foundations beneath the outside walls of the main building or buildings at the risk address stated in the Schedule are also affected at the same time by the same cause

c) arising from the settlement or movement of made-up ground or by coastal or river erosion

d) occurring as a result of the construction demolition structural alteration or structural repair of any property at the Premises

e) arising from normal settlement or bedding down of new structures

f) which originated prior to the granting of this cover

g) caused by faulty or defective workmanship materials or design

h) caused by fire subterranean fire explosion earthquake

i) recoverable under any warranty or guarantee including NHBC guarantee



Additional CoversAll terms exclusions and conditions of Section 1 apply to these Additional Covers in addition to those shown below as applying to each Additional Cover

Glass Shop Front Blinds and SignsThe Insurer will indemnify the Insured in respect of Damage to fixed glass and Shop Front for which the Insured is responsible at the Premises occurring during the Period of Insurance

Following Damage to fixed glass and Shop Front at the Premises the Insurer will also indemnify the Insured in respect of

a) the cost of reinstating Intruder Alarm Systems damaged as a result of glass breakage

b) any boarding up costs incurred

c) Damage to goods on display in windows caused by the impact of falling glass

The Insurer will also indemnify the Insured for Damage at the Premises to

d) neon and illuminated signs and electric light fitments

e) external blinds

f) sanitary ware (fixed baths wash basins pedestals bidets shower trays sinks lavatory pans and cisterns) where such Damage renders such article completely unserviceable

g) lettering or other ornamental work and alarm foil on fixed glass

The liability of the Insurer under c) d) e) f) and g) shall be restricted to £2,500 for any one loss

Exclusions

The Insurer shall not be liable for Damage

a) to glass and Shop Front

i. caused by repairs or alterations to the Premises

ii. caused by alteration installation or removal

iii. in any Building which is Unoccupied

b) to neon and illuminated signs and electric light fitments

i. caused by or traceable to wear and tear or gradual deterioration mechanical or electrical breakdown or removal from the fixed position other than by theft or attempted theft

ii. of bulbs or tubes unless consequent upon Damage to signs or fitments

c) caused by or arising from

i. superficial Damage or scratching or cracking which does not result in the complete breakage of the glass or Shop Front

ii. inherent or latent defect its own faulty or defective design or materials

iii. gradual deterioration or gradually operating cause wear and tear change in colour or finish

iv. changes in temperature or atmospheric or climatic conditions

v. defects in frames framework or any fitting

Theft by EmployeesThis Additional Cover is only operative if shown in the Schedule

For the purposes of this Additional Cover employee shall mean permanent employees under a contract of service or apprenticeship with the Insured and the Definition of Employee shall not apply

The Insurer will indemnify the Insured for direct loss of Money or Non-Negotiable Money or Property belonging to the Insured or for which they are legally responsible



a) caused by any act of fraud or dishonesty committed during the Period of Insurance by any employee with the clear intention of making or which results in improper financial gain for themselves or for any other person or organisation and

b) which is discovered by the Insured and notified to the Insurer within 30 days of the loss

Provided that

a) all losses insured by this Additional Cover and committed by any one employee or series of employees working in collusion with each other shall be regarded as one specific event

b) the liability of the Insurer shall be restricted to £10,000 in respect of any one specific event

Exclusions

The Insurer shall not be liable under this Additional Cover for

a) loss attributable solely to any unexplained shortages

b) loss caused by an employee before this Additional Cover incepted

c) loss where the Insured continues to entrust the defaulting employee with access to Money or Non- Negotiable Money or Property after becoming aware of any material fact that questions the honesty of the employee

d) any indirect loss arising as an indirect consequence of the specific event in respect of which indemnity is provided by this Additional Cover

Basis of Settlement

The Insurer will pay the value of the Money or Non-Negotiable Money or Property at the time of the loss or at its option replace or reinstate the Property

Goods in Transit (other than Motor Vehicles)For the purposes of this Additional Cover Vehicle shall mean a mechanically driven conveyance with or without attached trailers for conveying the Goods in Transit

The insurance by this Section extends to include Damage to Goods in Transit

a) being carried on any Vehicle owned or operated by the Insured whilst in the course of its journey on such Vehicle to or from any destination within the Territorial Limits or any member country of the European Union

b) whilst at any premises within the Territorial Limits for the purposes of cleaning renovation repair or similar purposes

during the Period of Insurance and subject to the Sum Insured stated in the Schedule but excluding

a) Damage outside of Business Hours unless the Vehicle is housed in a locked building or in a secure compound or guarded under constant surveillance

b) defective or inadequate packing or insufficient addressing

c) delay confiscation requisition embargo or nationalisation by order of the government or any public authority

d) spillage leakage evaporation loss of weight or shrinkage

e) mechanical and/or electrical derangement or breakdown

f) breakdown of refrigeration and/or insufficient insulation unless caused by or directly traceable to fire lightning or collision or overturning of the conveying Vehicle

All Risks on Portable PropertyThis Additional Cover is operative only if stated in the Schedule

The Insurer will indemnify the Insured against Damage from the Insured Perils to the portable property specified in the Schedule used in connection with the Business within the Geographical Areas specified in the Schedule



The liability of the Insurer under this Additional Cover shall be restricted to the Sums Insured stated in the Schedule for any one loss

Exclusions

The Insurer shall not be liable for

a) Damage to portable property left unattended unless contained in

i. a securely locked building or

ii. a vehicle which has been securely locked at all points of access and any security alarms and immobilisers fitted to the vehicle are in full operation and the portable property is concealed from view

b) depreciation or electrical or mechanical breakdown

c) Damage arising from wear and tear or from any process of cleaning restoring adjusting or repairing

d) Damage by official confiscation or detention

Engineering DamageIn the event of an Accident at the Premises to Covered Engineering Equipment owned by the Insured or for which the Insured is responsible during the Period of Insurance the Insurer will indemnify the Insured in respect of any loss resulting from such loss destruction or damage or at its option replace or reinstate such Covered Engineering Equipment in accordance with the provisions of the Policy and this Additional Cover provided that during the Period of Insurance the liability of the Insurer under this Additional Cover shall not exceed the Limit of Indemnity stated in the Schedule

Definitions applying to this Additional Cover

Accident(s) means

a) electrical or mechanical Breakdown including rupture or bursting caused by centrifugal force

b) artificially generated electrical current including electric arcing that disturbs electrical devices appliances or wires

c) Engineering Explosion or Engineering Collapse of Covered Engineering Equipment operating under steam or other fluid pressure

d) loss destruction or damage to Covered Engineering Equipment operating under steam or other fluid pressure caused by or resulting from any condition or event (not otherwise excluded) occurring inside such boilers or equipment

e) loss destruction or damage to hot water boilers other water heating equipment oil or water storage tanks caused by or resulting from any condition or event (not otherwise excluded) occurring inside such equipment

f) loss destruction or damage caused by operator error

g) loss destruction or damage caused by materials being processed

All Accidents that are the result of the same event shall be considered one Accident

Breakdown means

a) the actual breaking failure distortion or burning out of any part of the Covered Engineering Equipment whilst in ordinary use arising from defects in the Covered Engineering Equipment causing its sudden stoppage and necessitating repair or replacement before it can resume work

b) fracturing of any part of the Covered Engineering Equipment by frost when such fracture renders the Covered Engineering Equipment inoperative

c) the actual and complete severance of a rope but not breakage or abrasion of wires or strands even though replacement may be necessary



Computer Equipment means

a) electronic computer or other data processing and/or storage equipment

b) peripherals used in conjunction with a)

c) software and programs licensed to the Insured and installed on a)

Covered Engineering Equipment means

a) Computer Equipment

b) Equipment at the Premises owned by the Insured or for which the Insured is responsible

i. built to operate under vacuum or pressure (other than weight of contents) or

ii. oil and water storage tanks or

iii. used for the generation transmission storage or conversion of energy

Excluding

a) any supporting structure foundation masonry brickwork cabinet

b) any insulating or refractory material

c) any vehicle aircraft floating vessels or any equipment mounted thereon (other than vehicle recovery cranes or equipment which are included but not the actual vehicle)

d) self-propelled plant and equipment (other than fork lift trucks used by the Insured at their Premises) dragline excavation or construction equipment

e) equipment manufactured by the Insured for sale

f) tools dies cutting edges crushing surfaces trailing cables non-metallic linings driving belts or bands or any part requiring periodic renewal

g) any electronic equipment (other than Computer Equipment) used for research diagnostic treatment experimental or other medical or scientific purposes

h) any Manufacturing Production or Process Equipment

i) any electricity generating equipment other than emergency back-up power equipment or wind turbines(less than 10kw) or photovoltaic equipment less than 50kw

Derangement means

Electrical or mechanical malfunction of the machinery arising from a cause internal to the Computer Equipment unaccompanied by visible damage to or breaking out of any parts of the equipment

Engineering Collapse means

The sudden and dangerous distortion (whether or not attended by rupture) of any part of the Covered Engineering Equipment caused by crushing stress by force of steam or other fluid pressure (other than pressure of chemical action or ignited flue gases or ignition of the contents)

Engineering Explosion means

The sudden and violent rending of Covered Engineering Equipment by force of internal steam or other fluid pressure (other than pressure of chemical action or ignited flue gases or ignition of the contents) causing bodily displacement of any part of the Covered Engineering Equipment together with forcible ejection of the contents

Hazardous Substance means

Any substance other than ammonia that has been declared to be hazardous to health by a governmental agency

Manufacturing Production or Process Equipment means

Any machine or apparatus (other than boilers lifts fork lift trucks dock levelers and lifting tables) which has a primary purpose of processing or producing a product or service intended for eventual sale by the Insured and any equipment which exclusively serves such machinery or apparatus



Media means

All forms of electronic magnetic and optical tapes and discs for use in any Computer Equipment

Verified means

Checked for accuracy and integrity to ensure a precise match with the source data and capable of restoration

Extensions and Sub Limits to this Additional Cover

1) Hazardous Substances

The Insurer shall be liable for the additional cost to repair or replace Covered Engineering Equipment because of contamination by a Hazardous Substance including any additional expenses incurred to clean up or dispose of such property

The liability of the Insurer shall not exceed £10,000 any one Accident in respect of such additional costs

2) Computer Equipment

The Insurer shall be liable under this Extension for loss destruction or damage caused by or resulting from

a) an Accident to Computer Equipment at the Premises. The liability of the Insurer shall not exceed £500,000 for any one Accident

b) an Accident to portable Computer Equipment providing it is insured and within the Geographical Areas specified in the Schedule under Section 1 - All Risks on Portable Property. The liability of the Insurer shall not exceed £5,000 any one Accident

3) Public Authorities/Law or Ordinance

If an Accident to Covered Engineering Equipment damages Buildings and the loss is increased by enforcement of any public authority ordinance or law in force at the time of the Accident that regulates the construction or repair of buildings or establishes zoning or land use requirements the Insurer shall be liable for the following additional costs to comply with such ordinance or law

a) the Insured’s actual expenditures for the cost to demolish and clear the site of undamaged parts

b) the Insured’s actual expenditures for increased costs to repair rebuild or construct the Buildings If the Buildings are repaired or rebuilt it must be intended for similar use or occupancy as the current Buildings unless otherwise required by zoning or land use ordinance or law

c) loss as described in Section 2 – Business Interruption as a result of a) or b) above only if Section 2 – Business Interruption is operative


a) any fine

b) any liability to a third party

c) any increase in loss due to a hazardous substance other than as specifically insured under Extension 1

d) increased construction costs until the Buildings are actually repaired or replaced

This Extension is within and does not increase the Sum Insured for such Buildings stated in Section 1 – Material Damage of the Schedule

4) Expediting Expenses

With respect to damaged Covered Engineering Equipment or Computer Equipment the Insurer shall be liable for the reasonable extra cost to make temporary repairs and expedite permanent repairs or permanent replacement subject to a maximum of £20,000 in respect of any one Accident

5) Contents of Oil Storage Tanks

The Insurer shall be liable for the loss of the contents of static oil storage tanks caused by

a) escape of contents - leakage discharge or overflow from the oil storage tanks caused by or resulting from an Accident



b) contamination - contamination of the contents of oil storage tanks caused by or resulting from an Accident including cleaning costs incurred as a result of such loss

For the purposes of this Extension reference to oil storage tanks shall include all connected piping other than buried flexible or non-metallic piping

The liability of the Insurer under this Extension shall not exceed £10,000 any one Accident

6) Refrigerator Contents

The Insurer shall be liable for loss destruction or damage to frozen or chilled foodstuffs drugs or medicines owned by the Insured or for which the Insured is responsible in any frozen food cabinet deep freezer cold room cold store or refrigerator which is owned by the Insured or for which the Insured is responsible by or due to a change in temperature caused by an Accident or failure of the electricity supply

The Insurer shall not be liable for loss destruction or damage caused by

a) the deliberate act of any electricity undertaking in terminating disconnecting restricting or withholding the public supply of electricity

b) neglect or misuse

c) wear tear deterioration of the cabinet or other gradually operating cause

d) arising as a result of incorrect setting of thermostats or automatic controlling devices

This Extension is provided subject to an aggregate maximum of £15,000 at any one Premises in any one Period of Insurance however the Insurer shall not be liable for the amount of the Excess or 20% of any loss whichever is the greater amount where the frozen food cabinet deep freezer cold room cold store or refrigerator is over 10 years old

7) Damage to own surrounding property

The Insurer shall be liable for loss destruction or damage to property belonging to or in the custody and control of the Insured and for which they are responsible directly resulting from the Engineering Explosion or Engineering Collapse of any steam boiler steam generator economiser superheater steam pipework or steam vessel for an amount of up to £1,000,000 any one Accident

Basis of Settlement Clause applying to this Additional Cover

Subject to the following Special Conditions the basis upon which the amount payable in respect of Covered Engineering Equipment is to be calculated shall be the reinstatement of the Covered Engineering Equipment the subject of an Accident

For this purpose reinstatement means

a) the replacement of Covered Engineering Equipment the subject of an Accident which provided the liability of the Insurer is not increased may be carried out

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

ii. upon another site

b) the repair or restoration of Covered Engineering Equipment the subject of an Accident

in the case of a) or b) to a condition equivalent to or substantially the same as but not better or more extensive than its condition when new

Special Conditions

1) The Insurer’s liability for the repair or restoration of Covered Engineering Equipment the subject of an Accident shall not exceed the amount payable for replacement of the Covered Engineering Equipment

2) No payment beyond the amount which would have been payable in the absence of this clause shall be made

a) unless reinstatement commences and proceeds without unreasonable delay

b) until the cost of reinstatement shall have been actually incurred



3) All the terms and conditions of the Policy shall apply in respect of any claim payable under this clause except insofar as they are varied hereby

Clause applying to this Additional Cover

Reinstatement of Losses

Unless written notice to the contrary is given by either the Insurer or the Insured the insurance by this Additional Cover shall not be reduced by the amount of any loss from the date of the loss destruction or damage to the date of expiry of the Period of Insurance

Conditions applying to this Additional Cover

1) Precautions

The Insured shall exercise due diligence in

a) complying with any statute or order

b) ensuring that insured items are properly maintained and used in accordance with manufacturers’ recommendations and in taking reasonable precautions to prevent loss or damage

2) Back-up Records

The Insured shall maintain a minimum of two generations of Verified back-up Computer Records taken at intervals no less frequently than 48 hours and take all reasonable precautions to store and maintain records in accordance with the manufacturers’ recommendations

Exclusions applying to this Additional Cover

The following Exclusions are in addition to those in the Policy and the Section to which this Additional Cover forms part

1) The Insurer will not be liable for loss destruction or damage caused by or resulting from

a) a hydrostatic pneumatic or gas pressure test of any boiler or pressure vessel or an insulation breakdown test of any type of electrical equipment

b) defect or programming error or programming limitation or computer virus or malicious code or loss of data (other than as specifically provided for under Extension 2) of this Additional Cover) or loss of access or loss of use or loss of functionality or other condition within or involving data or Media of any kind

2) The Insurer will not be liable for loss destruction or damage caused by

a) depletion deterioration corrosion erosion wear and tear or other gradually developing conditions

b) any condition which can be corrected by re-setting calibrating re-aligning tightening adjusting or cleaning or by the performance of maintenance

but if insured loss destruction or damage from an Accident results the Insurer shall be liable for that resulting loss or damage

3) The Insurer will not be liable for

a) loss destruction or damage recoverable under the maintenance agreement or any warranty or guarantee or which would be recoverable but for breach of the Insured’s obligations under the agreement

b) the Excess as stated in the Schedule

Extensions to Section 1All terms exclusions and conditions of the Insured Perils under Section 1 apply to these Extensions in addition to those shown below as applying to each Extension

1) Underground Services

The Insurer will indemnify the Insured for Damage to underground water pipes gas pipes electricity and telephone cables extending from the Premises to the public mains from the Insured Perils but only to the extent of the Insured’s responsibility



2) Theft of Keys and Lock Replacement (other than Motor Vehicles)

The Insurer will indemnify the Insured for the cost of replacing locks and keys to the Buildings Safes Strongrooms or tills subject to an aggregate maximum of £10,000 in any one Period of Insurance provided that

a) the original keys were stolen from the Buildings or the private residence of the Insured or any authorised Employee

b) Damage by theft is not excluded in its entirety

c) this Extension shall not apply in respect of Motor Vehicles

3) Theft Damage to Buildings

The Insurer will indemnify the Insured against the cost of repairing Damage to the Buildings for which the Insured is legally responsible and are not otherwise insured which directly results from Insured Peril 7 provided that if the Buildings of the Premises are not insured by this Section the liability of the Insurer under this Extension shall not exceed an aggregate maximum of £25,000 in any one Period of Insurance

4) Exhibitions

The Insurer will indemnify the Insured for Damage to Plant Machinery and Trade Fixtures Stock in Trade and specified Stock Items as stated in the Schedule from the Insured Perils whilst in any buildings (not being of a temporary nature) and being used for an exhibition anywhere within the Territorial Limits and whilst in transit to and from the exhibition premises subject to a maximum of £2,500 for any one loss

5) Other Locations

The Insurer will indemnify the Insured for Damage to Plant Machinery and Trade Fixtures Stock and specified Stock Items as stated in the Schedule from the Insured Perils

a) whilst within the main building of the private residential home of a director or Employee anywhere within the Territorial Limits and

b) whilst in transit to and from the main building of such private residential home and the Premises

subject to a maximum of £2,500 for any one loss and an aggregate maximum of £10,000 in any one Period of Insurance

6) Third Party Storage Locations

The Insurer will indemnify the Insured for Damage to Plant Machinery and Trade Fixtures Stock in Trade and specified Stock Items as stated in the Schedule from the Insured Perils whilst at third party storage locations within the Territorial Limits subject to aggregate maximums of £5,000 at any one location and £20,000 in any one Period of Insurance

7) Landscaped Gardens

The Insurer will indemnify the Insured for costs and expenses incurred by the Insured with the consent of the Insurer in making good Damage to landscaped gardens and grounds caused by Fire Brigade equipment and personnel in the course of combating or reducing Damage from the Insured Perils at the Premises subject to an aggregate maximum of £10,000 in any one Period of Insurance

8) Loss of Metered Water

The Insurer will indemnify the Insured for the unit cost of metered water calculated at the current rate per cubic metre consumed as a direct result of Damage from the Insured Perils to any tank apparatus or pipe not being automatic sprinkler installations at the Premises subject to a maximum of £10,000 for any one loss

9) Trace and Access

The Insurer will indemnify the Insured for the costs incurred in locating the source of an escape of water or fuel from any tank apparatus or pipe on the Premises and subsequent making good of Damage caused as a consequence of locating such source subject to a maximum of £10,000 for any one loss



10) Clearing of Drains

The Insurer will indemnify the Insured for the costs and expenses incurred in cleaning clearing or repairing drains gutters or sewers at the Premises as a consequence of Damage from the Insured Perils but only to the extent of the Insured’s responsibility subject to a maximum of £5,000 for any one loss

11) Fire Extinguishment Expenses

The Insurer will indemnify the Insured for costs incurred with the consent of the Insurer in refilling fire extinguishment appliances replacing used sprinkler heads and refilling sprinkler tanks in the event of Damage to insured Property caused by fire subject to a maximum of £10,000 for any one loss

12) Computer Records

The Insurer will indemnify the Insured for the cost of the materials together with the cost of clerical labour and computer time expended in reproducing Computer Records and not for the value to the Insured for the information contained therein but excluding any expenses in connection with the production of information to be recorded in such Computer Records for a maximum of £10,000 for any one loss and in the aggregate

13) Temporary Removal of Motor Vehicles

The Insurer will indemnify the Insured for Damage to the Insured’s Vehicles and Customers’ Vehicles whilst such property is temporarily removed from the Premises for the purposes of cleaning renovation repair or other similar purposes to any other premises within the Territorial Limits from the Insured Perils subject to a maximum of £25,000 any one loss

This Extension shall not apply whilst such property is in transit either from or to the Premises

14) New Vehicle Concession Insured’s Vehicles and Customers’ Motor Vehicles

If within one year of registration as new any Motor Vehicle insured for Damage under this Section is

a) lost by theft and not recovered within 30 days of such theft being notified to the Insurer by the Insured or

b) damaged to the extent that the cost of repairs will exceed 50% of the manufacturer’s recommended retail price plus taxes immediately prior to such Damage and the claim is settled as a total loss

the Insurer will pay for the cost of purchasing a new replacement vehicle of the same make and model

Provided that

i. the Insured requests such a replacement vehicle

ii. such a replacement vehicle is available and

iii. the total payment will be limited to a maximum of £50,000 for any one loss above the amount which would otherwise have been payable under this Section had this Extension not been incorporated

15) Motor Vehicles Held for Sale

If a new Motor Vehicle held for sale by the Insured is subject to Damage to the extent that it necessitates

a) a declaration of such Damage to a prospective purchaser and

b) a discount to effect a sale

the Insurer will consider such discount as forming part of the claim under this Policy

Provided that

i. the Insurer has agreed the level of discount necessary to effect the sale and

ii. the total payment in respect of such discount will be limited to a maximum of £10,000 for such Motor Vehicle for any one loss



16) Loss of use of Customers’ Vehicles

The Insurer will pay costs or expenses incurred by any customer with the Insurer’s written consent in being deprived of the use of a Motor Vehicle following Damage to such Motor Vehicle at the Insured’s Premises and within the terms and conditions of this Section but only during a reasonable period necessary to allow for repair or replacement thereof

Provided that the maximum liability of the Insurer shall not exceed £50,000 for any one loss

17) Seasonal Increase for Insured’s Vehicles

The Sum Insured in respect of Insured’s Vehicles is increased by 30% during the following periods

a) February and March

b) August and September

18) Depreciation in Value (Stolen New Motor Vehicles)

In the event of theft of a new Motor Vehicle held for sale by the Insured whereby such Motor Vehicle is recovered undamaged and necessitates

a) a declaration of such to a prospective purchaser and

b) a discount to effect a sale

the Insurer will consider such discount as forming part of the claim under this Policy

Provided that

i. the Insurer has agreed the level of discount necessary to effect the sale and

ii. the total payment in respect of such discount will be limited to a maximum of £5,000 for such Motor Vehicle or 10% of the new Motor Vehicle value whichever is the lesser amount for any one loss

19) Insured’s Vehicles at Exhibitions

The Insurer will indemnify the Insured for Damage to the Insured’s Vehicles whilst on the site of any indoor exhibition anywhere within the Territorial Limits but excluding

a) theft or any attempt thereat unless involving forcible and violent entry to or exit from the exhibition premises and

b) any amount exceeding £250,000 for any one loss or in aggregate during any one Period of Insurance

20) Lock Replacement (Motor Vehicles)

The insurance by this Section extends to include the cost of replacing locks or lock mechanisms and all keys necessary to maintain the security of Motor Vehicles following theft of such keys by forcible and violent means for an amount not exceeding £50,000 for any one claim or in aggregate in any one Period of Insurance

21) Fraud Trick False Pretence

The insurance by this Section extends to include theft of Motor Vehicles during Business Hours by fraud trick or false pretence not arising from

a) the wilful parting of title for such Motor Vehicle or

b) unaccompanied demonstration

c) bank charge credit debit or cash card transactions initially authorised by the issuing company and then subsequently withdrawn unless discovered and reported by the Insured to the Police and the Insurer within 14 days of the transaction

For the purposes of this Extension the Conditions to this Section (where applying) and set out below shall not apply

The maximum liability of the Insurer under this Extension shall not exceed £50,000 for any one loss or in aggregate in any one Period of Insurance



22) Inadvertent Omission to Insure

The Insurer will indemnify the Insured for Damage to Property (other than Customers’ Goods and Customers’ Vehicles) within the Territorial Limits where such property has been inadvertently omitted to be insured

Provided that

a) the Insured had previously notified the Insurer of their intention to insure such property in which they have an interest and it is their belief that all such property is insured under this Section

b) the liability of the Insurer shall not exceed £100,000 for any one loss

c) the Insured shall give notice in writing to the Insurer immediately they become aware of an omission to insure and will pay the appropriate premium from the date upon which the insurance of the Property (other than Customers’ Goods and Customers’ Vehicles) became the Insured’s responsibility or the Effective Date of this Policy whichever is the later

23) Theft of Building Fabric

The Insurer will indemnify the Insured for Damage to

a) the external fabric of the Buildings as a result of theft or attempted theft

b) Property as a result of rainwater entry following theft or attempted theft of the external fabric of the Buildings

for which the Insured is legally responsible and is not otherwise insured

Subject to an aggregate maximum of £5,000 in any one Period of Insurance

This Extension shall not apply

a) to any Buildings which are Unoccupied

b) when scaffolding is erected at the Buildings

c) where Insured Peril 7 - Theft is not operative

Clauses1) Non-invalidation

The insurance by this Section shall not be invalidated by any act or omission or alteration unknown to or beyond the control of the Insured whereby the risk of Damage is increased as long as immediately the Insured becomes aware of the increase in risk they inform the Insurer in writing and pay an appropriate additional premium if required by the Insurer

2) Reinstatement of Losses

Unless written notice to the contrary be given by either the Insurer or the Insured the insurance by this Section shall not be reduced by the amount of any loss and the Insured shall pay the appropriate additional premium from the date of the Damage to the date of expiry of the Period of Insurance

3) Mortgagees

The interest of any mortgagee shall not be prejudiced by any act or neglect of the mortgagor or occupier which may increase the risk of Damage to any Buildings insured by this Section provided the mortgagee immediately upon becoming aware of such increase in risk shall give notice to the Insurer and pay an appropriate additional premium if required

4) Property more specifically insured

The Insurer shall not be liable for Damage to any Property insured more specifically by or on behalf of the Insured

5) Workmen

The insurance by this Section shall not be prejudiced where workmen are allowed in and about the Premises for the purpose of undertaking erection alteration repair decoration plant installation general maintenance and the like



Basis of Settlement Clauses1) Average

If the Property insured by this Section (other than Customers’ Goods and Customers’ Vehicles) shall at the time of the Damage be collectively of greater value than the Sums Insured then the Insured shall be considered as being their own insurer for the difference and shall bear a rateable share of their Damage accordingly

2) Reinstatement

In the event of Damage to Property insured by this Section (other than Stock in Trade specified Stock Items as stated in the Schedule Customers’ Vehicles Insured’s Vehicles and Computers) the basis of settlement shall be the cost of reinstatement meaning the rebuilding replacement repair or restoration of such property to a condition substantially the same as but not better or more extensive than its condition when new

In the event of Damage to Computers the basis of settlement shall be the cost of reinstatement meaning

a) where any item suffers Damage beyond economic repair replacement by a new item of equal performance and/or capacity or if such be impossible replacement by an item having the nearest higher performance and/or capacity to the item damaged

b) where the item suffers Damage the repair of the Damage and the restoration of the damaged portions to a working condition substantially the same as but not better or more extensive than its condition when new

Special Provisions

i. The replacement must be carried out without undue delay and no payment beyond the amount which would have been paid in the absence of this clause will be made until the cost of reinstatement has been incurred

ii. Where Damage occurs to only part of such property the liability of the Insurer shall not exceed the amount which the Insurer would have been liable to pay had such property been wholly destroyed

iii. If at the time of reinstatement of any item the sum representing 85% of the cost which would have been incurred in reinstating the whole of the property covered by such item exceeds its Sum Insured at the time of the Damage the liability of the Insurer shall not exceed that proportion of the amount of the Damage which the said Sum Insured shall bear to the sum representing the total cost of reinstating the whole of such property at that time

3) Day One

For any item specified on the Schedule showing a Declared Value and a Sum Insured this shall be deemed to be a Day One Basis of Settlement and the following clause shall replace Basis of Settlement Clause 2) above

In the event of Damage to Buildings Plant Machinery and Trade Fixtures (other than Computers) the basis of settlement shall be the cost of reinstatement meaning the rebuilding replacement repair or restoration of such property to a condition substantially the same as but not better or more extensive than its condition when new

Special Provisions relating to Buildings Plant Machinery and Trade Fixtures (other than Computers)

a) At the inception of each Period of Insurance the Insured shall notify the Insurer of the Declared Value of the Buildings Plant Machinery and Trade Fixtures insured by each item described in the Schedule

b) If at the time of Damage the Declared Value of such property insured by each item is less than the cost of reinstatement at the inception of the Period of Insurance the liability of the Insurer shall not exceed the proportion which the Declared Value bears to the costs of such reinstatement

c) Where Damage occurs to only part of the Buildings Plant Machinery and Trade Fixtures the liability of the Insurer shall not exceed the amount which the Insurer would have been liable to pay had such property been wholly destroyed

d) The replacement must be carried out without undue delay and no payment beyond the amount which would have been paid in the absence of this clause will be made until the cost of reinstatement has been incurred

e) No payment will be made beyond the amount the Insurer would have paid where such property insured at the time of Damage is covered by any other insurance effected by the Insured or on behalf of the Insured which is not on the same basis of reinstatement



In the event of Damage to Computers the basis of settlement shall be the cost of reinstatement meaning

a) where any Computer item suffers Damage beyond economic repair replacement by a new item of equal performance and/or capacity or if such be impossible replacement by an item having the nearest higher performance and/or capacity to the item damaged

b) where the Computer item suffers Damage the repair of the Damage and the restoration of the damaged portions to a working condition substantially the same as but not better or more extensive than its condition when new

Special Provisions relating to Computers

i. If at the time of reinstatement of any Computer item the sum representing 85% of the cost which would have been incurred in reinstating the whole of the property covered by such item exceeds its Sum Insured at the time of the Damage the liability of the Insurer shall not exceed that proportion of the amount of the Damage which the said Sum Insured shall bear to the sum representing the total cost of reinstating the whole of such property at such time

ii. Where Damage occurs to only part of the property the liability of the Insurer shall not exceed the amount which the Insurer would have been liable to pay had the property been wholly destroyed

iii. The replacement must be carried out without undue delay and no payment beyond the amount which would have been paid in the absence of this clause will be made until the cost of reinstatement has been incurred

iv. No payment will be made beyond the amount the Insurer would have paid where such property insured at the time of Damage is covered by any other insurance effected by the Insured or on behalf of the Insured which is not on the same basis of reinstatement

4) Stock in Trade and specified Stock Items

In respect of Stock in Trade and specified Stock Items as stated in the Schedule the Insurer will pay the Insured the value of the Stock in Trade and specified Stock Items as stated in the Schedule at the time of its Damage with adjustment for wear and tear

If at the time of any Damage the value of the Stock in Trade and specified Stock Items as stated in the Schedule insured under any item is greater than its Sum Insured the Insured shall be considered as being their own insurer for the difference and shall bear a rateable share of the loss accordingly

5) Customers’ Vehicles

The Insurer may at its option repair or replace Customers’ Vehicles or accessories or make a settlement in cash not exceeding the replacement value at the time of the damage

If any damaged part or accessory is unobtainable the Basis of Settlement shall be the manufacturer’s last list price

6) Insured’s Vehicles

If the Insured’s Vehicles are damaged the Insurer will at its discretion repair or replace the Insured’s Vehicles or make a cash settlement

The most the Insurer will pay is

a) the Trade Value of the Insured’s Vehicles at the time of the damage or

b) the purchase price of the Insured’s Vehicles

whichever is the lesser amount

7) European Union and Public Authorities

The Insurer will indemnify the Insured for the additional cost of

a) reinstating the damaged parts of the Buildings

b) upgrading any undamaged parts of the Buildings



for an amount not exceeding 15% of the amount that would have been payable if the Buildings had been totally destroyed incurred solely by the necessity to comply with any building or other statutory regulations or Public Authority Bylaw or European Community Legislation excluding

i. any cost resulting from any such requirement first imposed upon the Insured before the date of the Damage

ii. the amount of any rate tax duty development or other charge arising out of capital appreciation as a result of complying with any such requirements which may be payable in respect of the Buildings

Conditions

a) The work of reinstatement must be completed within 12 months of the date of the Damage or such further period as the Insurer may in writing allow

b) The liability of the Insurer for Damage to such property including such costs and expenses shall not exceed the Sum Insured stated in the Schedule

8) Cost of Debris Removal/Re-erection

The insurance by each item of Property insured extends to include costs and expenses incurred by the Insured with the consent of the Insurer in

a) removing debris

b) dismantling and/or demolishing

c) shoring up or propping or

d) re-erecting fitting and fixing in respect of Plant Machinery and Trade Fixtures (including all other contents)

but only in respect of the portion of the Property insured which is the subject of a claim under this Section

The Insurer will not pay for any costs or expenses

a) incurred in removing debris except from the site of any Property insured which is the subject of a claim under this Section and the area immediately adjacent to such site or

b) arising from Pollution or Contamination of property not insured by this Section

The liability of the Insurer for Damage to such Property including such costs and expenses shall not exceed the Sums Insured stated in the Schedule

9) Capital Additions

To the extent that they are not otherwise insured the insurance of Buildings Tenants’ Improvements and Plant Machinery and Trade Fixtures shall extend to cover

a) alterations additions and improvements to Buildings Tenants’ Improvements and Plant Machinery and Trade Fixtures but not appreciation of the value of the such property

b) any newly erected or acquired Buildings Tenants’ Improvements and Plant Machinery and Trade Fixtures within the Territorial Limits from the commencement date of the responsibility of the Insured

subject to

i. the Insured advising the Insurer of the amendments as soon as practicable on becoming aware of the increase in the extent of cover required and paying the appropriate additional premium

ii. the Sums Insured for Buildings Tenants’ Improvements and Plant Machinery and Trade Fixtures at each location only being increased by the value of the additional property up to no more than 10% of the existing Sums Insured or £250,000 whichever is the lesser at any one location

10) Professional Fees

The insurance by each item on Buildings Tenants’ Improvements and Plant Machinery and Trade Fixtures includes an amount for architects’ surveyors’ consulting engineers’ and legal fees incurred in the reinstatement or repair of such property consequent upon its Damage but not for preparing any claim. The total liability of the Insurer for Damage to such property including such fees shall not exceed the Sums Insured stated in the Schedule



11) Contracting Purchaser

Where the Insured at the time of Damage has contracted to sell their interest in any insured Building and the purchase is subsequently completed the contracting purchaser shall be entitled to benefit under the Policy provided that the Building is not otherwise insured by the Insured or on their behalf

12) Contract Price

In respect only of Stock in Trade sold but not delivered for which the Insured is responsible under the terms of a sale contract which following Damage is cancelled due to the contract conditions wholly or to the extent of the Damage the liability of the Insurer shall be based on the contract price

13) Subrogation Waiver

In the event of a claim arising under this Section the Insurer agrees to waive any rights remedies or relief to which it might become entitled by subrogation against

a) any company standing in the relation of parent or subsidiary to the Insured or

b) any company which is a subsidiary of or a parent company of which the Insured themselves are subsidiary in each case within the meaning of the Companies Act or Companies (Northern Ireland) Order current at the time of the Damage

14) Other Interests

Interests of third parties which the Insured is required to include herein under the terms of any mortgage property lease or hiring leasing or hire purchase agreement are automatically deemed to be held covered subject to notification by the Insured to the Insurer at the time of the Damage

15) Business Books

The basis of settlement of any claim for business books shall be their value as stationery together with the cost of clerical labour expended in their reproduction

Exclusions applying to Section 1 - Material DamageThe Insurer shall not be liable for Damage to or arising out of or attributable to

1) loss of market monetary devaluation loss of use or any other resultant loss other than that provided under Extension 16) of this Section

2) defective workmanship or Damage to any Property sustained whilst it is actually being worked upon and directly resulting from such work but this Exclusion shall not apply to Damage by fire or explosion to the Insured’s Vehicles

3) unexplained losses shortages due to error or omission losses discovered at times of normal stocktaking or making an inventory loss resulting from the Insured voluntarily parting with title or possession of any property if induced to do so by deception

4) railway locomotives rolling stock watercraft or aircraft

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

6) land piers jetties bridges culverts or excavations

7) livestock growing crops or trees

8) jewellery precious stones precious metals bullion or furs

Conditions1) Intruder Alarm System

This Condition only applies where an Intruder Alarm Requirement is stated in the Schedule as being applicable under Section 1 – Material Damage

It is a condition precedent to the Insurer’s liability for Damage by Insured Peril 7 that in respect of the Intruder Alarm System installed at the Premises



a) the Intruder Alarm System is maintained in full and effective working order under a contract to provide corrective and preventive maintenance with the installer or such other contractor agreed by the Insurer in writing

b) the Premises are not left unattended

i. unless the Intruder Alarm System is tested and set in its entirety and is together with the means of communication used to transmit or receive signals in full and effective operation

ii. where the Police have withdrawn their response to alarm activation

c) the Intruder Alarm System

i. is installed in accordance with a specification agreed in writing by the Insurer

ii. must not be altered or amended in any way unless such amendment or alteration has been approved by the Insurer and no alteration or substitution of the structure of the Premises or changes to the layout of the Premises which would affect the effectiveness of the Intruder Alarm System shall be made without the written consent of the Insurer

iii. maintenance contract must not be altered or substituted without the written consent of the Insurer

iv. procedures agreed by the Insured for the police or any other response to any activation of or other warning signal pertaining to the Intruder Alarm System must not be altered or substituted without the written consent of the Insurer

d) the Insured must

i. maintain secrecy of the codes for the operation of the Intruder Alarm System and no details of such codes shall be left on the Premises when the Premises are left unattended

ii. immediately notify the Insurer upon receipt of any communication giving notice that the level response to the Intruder Alarm System has been or will be reduced

iii. appoint at least 2 Keyholders and lodge written details with the alarm company

e) in the event of notification of

i. any alarm fault

ii. activation of the Intruder Alarm System

iii. interruption of the means to transmit or receive signals to or from the Intruder Alarm System during the period that the Intruder Alarm System is set

a Keyholder must attend the Premises as soon as possible in order to confirm the security of the Premises and reset the Intruder Alarm System in its entirety

If the Intruder Alarm System cannot be reset in its entirety or all means of communication used to transmit signals are not in full operation a Keyholder must remain at the Premises unless otherwise agreed in writing by the Insurer

2) Minimum Level of Security

It is a condition precedent to the Insurer’s liability for loss or Damage by Insured Peril 7 under the Policy that the Insured shall have in place in full working order and in operation whenever the Premises are closed for business or left unattended the following minimum level of security or such level as is specified in the Schedule

a) the final exit door of the Insured’s portion of the Buildings is to be fitted with either

i. for timber or steel framed doors a mortice deadlock that has 5 or more levers and matching box striking plate which conform to BS 3621 or

ii. for timber or steel framed doors a rim latch deadlock that conforms to BS 3621

b) all other external doors and internal doors giving access to any part of the buildings not occupied by the Insured are to be fitted with either

i. as described in a) i. and ii. above or



ii. 2 key-operated security bolts for doors fitted approximately 30cms from the top and bottom of the doors respectively

c) aluminium or UPVC framed doors are to be fitted with integral cylinder key operated mortice deadlocks

d) all ground floor and basement opening windows/skylights and other opening windows/skylights accessible from roofs decks balconies fire escapes canopies down pipes are to be fitted with key operated window locks. This requirement does not apply to windows/skylights which are protected by solid steel bars grilles gates expanded metal or weld-mesh securely fixed to the brickwork surrounding the window

e) all manually operated roller shutters are to be secured by either

i. two key operated security shutter locks with the locking mechanisms positioned as close as possible to the bottom of the shutter to prevent it from being prised up to allow entry or

ii. with a close shackle padlock conforming to Security Grade 4 of BS EN 12320 or

iii. as e) i. above together with the roller shutter manufacturer’s corresponding locking bar

f) all electrically operated doors must be secured by either

i. an internal opening switch locked in the off position by means of an integral lock and/or padlock or

ii. such doors are to have the power supply to the operating switch isolated at a suitable electrical power distribution board which is secured against unauthorised use and/or

iii. the security level as detailed in e) above

g) all outward opening doors must be fitted with two hinge bolts one fitted approximately 600mm from the top of the door and one fitted approximately 600mm from the bottom of the door

h) all double doors must have the first closing leaf secured with two flush bolts or two mortice rack bolts and the final closing leaf must be secured with a mortice deadlock conforming to BS 3621: Specification for thief resisting locks together with a compatible boxed striking plate. Where aluminium doors are fitted the final closing leaf of aluminium doors must be secured by a cylinder pin tumbler mortise deadlock with a hook bolt locking mechanism or similar

Any door or window officially designated a fire exit by the fire authority is excluded from these requirements. These are to be secured internally by panic bolts or fire exit bolts. Any additional devices are to be approved by the local Fire Prevention Officer

3) Fire Extinguishing Appliances

The fire extinguishing appliances at the Premises whether installed at the commencement of this insurance or subsequently at the request of or with the knowledge of the Insurer shall be maintained in good and efficient working order

The Insured undertakes to maintain the said appliances in efficient working order during the Period of Insurance in accordance with the manufacturers guidelines

Subject to observance of this undertaking Section 1 – Material Damage of this Policy shall not be invalidated by any defect in any of the said appliances due to any circumstances unknown or beyond the control of the Insured

4) Motor Trade Fire Precautions

It is a condition precedent to the Insurer’s liability under Section 1 – Material Damage that

a) all oily and all dirty waste and greasy cloths shall be kept in metal receptacles and completely removed from the Premises at least once a week

b) no woodworking by power is undertaken

c) all battery charging benches are covered with slate glass tile or other non-conducting and non-porous material

d) no overnight lead acid battery charging will be done

e) no motor spirit with a flash point below 32 degrees centigrade shall be kept except for a maximum of 45 litres in closed tins kept under the following conditions



i. in or on any vehicle for the use of such vehicle only

ii. in closed nine litre tins contained within a compartment the sides of which are constructed of brickwork masonry or concrete and the floor roof or ceiling including any supports of incombustible material of at least 8 centimetres thick and having a closely fitting door of incombustible material or hardwood to each opening

iii. in an enclosed underground tank filled and emptied by hose connection or pump only

5) Paint Spraying Condition

It is a condition precedent to the Insurer’s liability under Section 1 – Material Damage that no spraying of cellulose or other paint with flash points below 32 degrees centigrade be undertaken unless

a) all paint spraying is undertaken in a booth

b) such booth has self closing doors and a ventilating fan extracting to the outside of the Building

c) the ventilating fan shall be kept running for a period of at least 5 minutes after cessation of spraying

d) a nine litre foam fire extinguisher must be kept immediately outside the booth at all times

e) the booth be thoroughly cleaned at least once a week and whenever a change from cellulose paints to synthetic paints is made the booth is cleaned with stiff fibre or non-ferrous metal brushes or scrapers and the residue placed in water

f) only the actual paint in use is kept in the booth and all other stocks of paints and thinners shall be kept in a designated paint store in sealed tins

g) all switches and electrical apparatus have flameproof fittings

6) Vehicle Keys Condition

It is a condition precedent to the Insurer’s liability under Section 1 – Material Damage that all unattended Motor Vehicles must be securely locked and all windows and similar openings are tightly closed with the vehicle keys removed from such vehicle

During Business Hours all keys to unattended Motor Vehicles must be kept in a securely locked place out of sight of the public

Outside of Business Hours all keys to unattended Motor Vehicles are to be removed from the Premises or retained within a locked Safe or purpose built key cabinet within an alarmed part of the Building and the key to such Safe or cabinet removed from the Premises

Unattended Motor Vehicles means any Motor Vehicles left without the Insured keeping such Motor Vehicles under observation

7) No Smoking Condition

It is a condition precedent to the Insurer’s liability under Section 1 – Material Damage that smoking is prohibited in the Premises and suitable “No Smoking” notices are displayed as prescribed under

a) Section 2 of The Smoke-free (Signs) Regulations 2007 (English Statutory Instrument 2007 No. 923) or

b) Section 2 of The Prohibition of Smoking in Certain Places (Scotland) Regulations 2006 (Scottish Statutory Instrument 2007 No. 90) or

c) Section 5 of The Smoke-free Premises etc. (Wales) Regulations 2007 (Welsh Statutory Instrument No. 787) or

d) Section 7 of The Smoking (Northern Ireland) Order 2006 (Northern Ireland Statutory Instrument No. 2957)

Any of a) to d) above apply to Premises insured under this policy based upon the actual location of the Premises

All ashtrays bins sand buckets or other receptacles for smoking materials are removed from any Premises affected by this legislation



8) Drainage of Vehicle Fuel Tanks

It is a condition precedent to the Insurer’s liability in respect of loss or damage under Insured Perils 1 and 3 of Section 1 – Material Damage that in respect of the drainage of vehicle fuel tanks the Insured must ensure that

a) the procedure is carried out

i. in a safe position in the open or

ii. in a well-ventilated area away from pits and ignition sources using a proprietary retriever fitted with adaptors suitable for that type of vehicle

b) all Employees in the vicinity must be advised that a hazardous procedure is taking place

9) Vehicles in the Open Condition

It is a condition precedent to the Insurer’s liability under Section 1 – Material Damage that all

a) of the Insured’s Vehicles displayed for retail sale purposes and

b) Customers’ Vehicles

in the open during Business Hours must be securely locked and all windows and similar openings tightly closed with the ignition key removed therefrom

10) Welding Precautions Condition

It is a condition precedent to the Insurer’s liability under Section 1 – Material Damage that the following precautions are complied with whenever welding or flame cutting equipment are used

a) all flammable trim upholstery and other loose combustible material is removed from the areas to be cut or welded to a place of safety

b) fuel lines and other combustible materials which cannot be removed are adequately shielded using a suitable incombustible heat resistant material

c) any fuel tanks which may be affected by hot work repairs are to be emptied and removed ensuring that

i. all fuel is drained into storage containers suitable for the purpose

ii. the vehicle ignition switch is turned off and there are no ignition sources in the vicinity during decanting including unsealed electrical fittings

iii. petrol is never removed over an inspection pit

d) effective non-return valves and flame arresters are used on oxyacetylene welding equipment

e) a suitable multi-purpose fire extinguisher is kept available for immediate use within close proximity of the area in which the equipment is to be used

f) all welding and cutting equipment is kept in an effective condition and maintained on a regular basis

g) a thorough examination is made in and about the area in which the work has been undertaken immediately after each period of work to ensure that there is no smouldering or damaged combustible material

11) Portable Hand Tools Condition

It is a condition precedent to the Insurer’s liability under Section 1 – Material Damage that outside of Business Hours Portable Hand Tools are kept in a securely locked tool chest which is fixed to the fabric of the Building or a fixed vehicle lifting platform

12) Roof Maintenance Condition

It is a condition precedent to the Insurer’s liability under Section 1 – Material Damage that

a) any section of flat felted roof over 7 years old is inspected at least once every two years by a competent builder or qualified property surveyor and any defect identified by that inspection is repaired immediately

b) any roof valley guttering is checked annually for blockages or defects and any remedial action required is immediately implemented


SECTION 2 – BUSINESS INTERRUPTION

This Section of the Policy is operative only if stated in the Schedule

In the event of Damage to the Property used by the Insured for the purposes of the Business carried on by the Insured at the Premises during the Period of Insurance from the Insured Perils under Section 1 - Material Damage

a) resulting in interruption or interference with the Business or

b) which prevents the Insured from tracing or establishing customers’ Book Debts in whole or in part as a result of the Insured’s books of account at the Premises being damaged

the Insurer will indemnify the Insured

i. in respect of a) the amount of loss resulting from such interruption or interference provided that at the time of the Damage there shall be in force an insurance covering the interest of the Insured in the Property at the Premises and that liability shall be admitted or payment made therefore or payment would have been made or liability admitted but for the operation of a proviso in the insurance excluding liability for losses below a specified amount

ii. in respect of b) the amount of loss resulting from the Damage

The liability of the Insurer under this Section at the time of the event shall not exceed 133 1/3% of the Estimated Gross Profit if Declaration Linking is shown as operative in the Schedule or the Sum Insured or Limit shown in the Schedule for any other item insured under this Section

ClauseReinstatement Following a Loss

The liability of the Insurer under this Section shall not exceed the Sum Insured or Limit remaining after deduction for any other interruption or interference resulting from Damage occurring during the same Period of Insurance unless the Insurer has agreed to reinstate any such Sum Insured or Limit

Basis of Settlement Clauses1) Gross Profit

The Insurer will pay as indemnity to the Insured the amount of their loss in respect of each item stated in the Schedule as a result of loss of Gross Profit due to reduction in Turnover and/or Increased Cost of Working

a) the amount payable in respect of a reduction in Turnover shall be the sum produced by applying the Rate of Gross Profit to the amount by which the Turnover shall fall short of the Standard Turnover during the Indemnity Period as a result of the Damage

b) the amount payable in respect of the Increased Cost of Working as a result of the Damage not exceeding the sum produced by applying the Rate of Gross Profit to the amount of the reduction in Turnover thereby avoided

less any sum saved during the Indemnity Period in respect of such charges and expenses of the Business payable out of Gross Profit that may cease or be reduced as a result of the Damage

2) Gross Profit (declaration linked basis)

Where Declaration Linking is shown as operative on the Schedule under Section 2 the following Basis of Settlement Clause will apply

The Sum Insured shown as Gross Profit in the Schedule represents the Estimated Gross Profit and the Insurer will pay as indemnity to the Insured the amount of their loss as a result of loss of Gross Profit due to reduction in Turnover and Increased Cost of Working

a) the amount payable in respect of a reduction in Turnover shall be the sum produced by applying the Rate of Gross Profit to the amount by which the Turnover shall fall short of the Standard Turnover during the Indemnity Period as a result of the Damage

b) the amount payable in respect of the Increased Cost of Working as a result of the Damage not exceeding the sum produced by applying the Rate of Gross Profit to the amount of the reduction in Turnover thereby avoided

less any sum saved during the Indemnity Period in respect of such charges and expenses of the Business payable out of Gross Profit that may cease or be reduced as a result of the Damage


SECTION 2 – BUSINESS INTERRUPTION CONTINUED

Special Provision relating to Basis of Settlement Clauses 1 and 2

Adjustments shall be made 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 the Damage or which would have affected the Business had the Damage not occurred so that the figures thus adjusted shall represent as nearly as may be reasonably practicable the results which but for the Damage would have been obtained during the relative period after the Damage

3) Increased Cost of Working

The Insurer will pay as indemnity to the Insured the additional expenditure incurred with the prior written consent of the Insurer for the sole purpose of avoiding or diminishing the reduction in Turnover which but for that expenditure would have taken place during the Indemnity Period in consequence of the Damage but not exceeding the sum produced by applying the Rate of Gross Profit to the amount of the reduction thereby avoided

4) Rent Receivable

The Insurer will pay as indemnity to the Insured the amount of their loss in respect of

a) the amount by which the Rent Receivable during the Indemnity Period shall fall short of the Standard Rent Receivable as a result of the Damage

b) the amount of additional expenditure incurred by the Insured with the prior written consent of the Insurer as a result of the Damage but not exceeding the loss of Rent Receivable thereby avoided

provided that if the Sum Insured for loss of Rent Receivable is less than the Standard Rent Receivable the amount payable shall be proportionately reduced

5) Book Debts

The amount payable by the Insurer in respect of Book Debts is limited to loss sustained by the Insured directly due to Damage and the amount payable in respect of any one event shall not exceed

a) the difference between the Book Debts and the total of the amounts received or traced in respect thereof

b) the additional expenditure incurred with the written consent of the Insurer in tracing and establishing customers’ debit balances after Damage

6) Average

Applicable to Basis of Settlement 1) Gross Profit

If the Sum Insured is less than the Gross Profit for the 12 months (or a proportionately increased multiple thereof where the Maximum Indemnity Period as stated in the Schedule exceeds 12 months) immediately prior to the occurrence of Damage the amount payable shall be proportionately reduced after due provision has been made for the trend or variation in or other circumstances affecting or which would have affected the Business either before or after the Damage

Applicable to Basis of Settlement 4) Rent Receivable

If the Sum Insured is less than the Rent Receivable for the 12 months (or a proportionately increased multiple thereof where the Maximum Indemnity Period as stated in the Schedule exceeds 12 months) immediately prior to the occurrence of the Damage the amount payable shall be proportionately reduced after due provision has been made for the trend or variation in or other circumstances affecting or which would have affected the Business either before or after the Damage

7) Specified Working Expenses

If any of the working expenses of the Business are excluded by this Section having been deducted in arriving at the Gross Profit then in calculating the amount recoverable under this Section as Increased Cost of Working that proportion only of any additional expenditure shall be brought into account which the Gross Profit bears to the sum of the Gross Profit and the Specified Working Expenses



8) Alternative Trading

If during the Indemnity Period work is done or services rendered elsewhere than at the Premises for the benefit of the Business either by the Insured or by others on behalf of the Insured the amount paid or payable in respect of such work or services shall be accounted for in arriving at the Turnover during the Indemnity Period

9) Departmental

If the Business is conducted in departments the independent trading results of which are ascertainable the basis of Gross Profit shall apply separately for each department

10) Accountants’ and Auditors’ Charges

The Insurer will pay to the Insured the charges payable by the Insured to their professional accountants and auditors for producing and certifying any particulars or details or any other proofs information or evidence as may be required by the Insurer under the terms of this Section and reporting that such particulars or details are in accordance with the Insured’s books or documents

11) Current Cost Accounting

For the purpose of this Section any adjustment implemented in current cost accounting shall be disregarded

12) Value Added Tax

To the extent that the Insured is accountable to the tax authorities for Value Added Tax all terms in this Section shall be exclusive of such tax

13) Payments on Account

Payments on account will be made to the Insured during the Indemnity Period if so requested subject to appropriate adjustment at the end of the Indemnity Period

Extensions to Section 2All terms exclusions and conditions of the Insured Perils under Section 1 and all terms exclusions and conditions of Section 2 apply to these Extensions in addition to those shown below as applying to each Extension

These extensions are operative only if Gross Profit is stated in the Schedule.

The liability of the Insurer includes loss as insured by this Section resulting from interruption or interference with the Business in consequence of

1) Premises Closure or Restrictions

a) closure or restrictions placed on the Premises on the advice of or with the approval of the Medical Officer of Health for the Public Authority as a result of a Notifiable Human Disease occurring at the Premises

b) injury or illness sustained by any person caused by or traceable to foreign or injurious matter in food or drink sold from the Premises by the Insured

c) vermin and pests at the Premises

d) closure of the whole or part of the Premises by order of the Public Authority consequent upon defects in the drains and other sanitation at the Premises

e) murder or suicide occurring at the Premises

subject to a maximum of £50,000 for any one loss

The Insurer shall not be liable under this extension for costs incurred in cleaning repair replacement recall or checking of property

2) Customers

Damage from the Insured Perils at the premises of any of the Insured’s customers within Great Britain Northern Ireland the Channel Islands or the Isle of Man provided that for the purpose of this extension customers means those companies and organisations or individuals with whom at the time of damage the Insured has contracts or trading relationships to supply goods or services subject to a maximum of £100,000 for any one loss



3) Suppliers

Damage from the Insured Perils at the premises of any of the Insured’s suppliers manufacturers or processors within Great Britain Northern Ireland the Channel Islands or the Isle of Man but excluding

a) the premises of any supply undertaking from which the Insured obtains electricity gas water or telecommunications services

b) where more specifically insured under Extension 10 or 11 of this Section

Subject to a maximum of £100,000 for any one loss

4) Denial of Access

Damage from the Insured Perils to property within a one mile radius of the Premises which shall prevent or hinder the use of or access to the Insured’s Premises whether or not there has been Damage to the Premises or Property of the Insured but excluding the property of any supply undertaking from which the Insured obtains electricity gas water or telecommunications services subject to a maximum of £100,000 for any one loss

5) Accidental Failure of Public Supply

Accidental failure at the terminal ends of the public supply undertakings’ feed to the Premises of electricity gas water or telecommunications services as a direct result of damage subject to a maximum of £100,000 for any one loss and providing the cessation of supply is of at least 30 minutes in respect of electricity gas or water and for a minimum of 8 consecutive hours in respect of telecommunications excluding

a) atmospheric solar or lunar conditions causing temporary interference with transmission to or from any satellite

b) total or partial failure of the public supply occasioned by strike or lock-out total or partial withdrawal of labour or total or partial cessation of work

6) Goods in Transit

Damage to Goods in Transit if insured by Section 1 and for which the Insurer has admitted liability subject to a maximum of £50,000 for any one loss

7) Documents

Damage from the Insured Perils to documents belonging to or held in trust by the Insured whilst temporarily at premises not in the occupation of the Insured or whilst in transit by road rail or inland waterway in Great Britain Northern Ireland the Channel Islands or the Isle of Man subject to a maximum of £25,000 for any one loss

8) Storage Sites

Damage from the Insured Perils at any premises in Great Britain Northern Ireland the Channel Islands or the Isle of Man not in the occupation of the Insured where Property of the Insured is stored subject to a maximum of £25,000 for any one loss

9) Contract Sites

Damage from the Insured Perils at any situation in Great Britain Northern Ireland the Channel Islands or the Isle of Man where the Insured is carrying out a contract subject to a maximum of £25,000 for any one loss

10) Unspecified Suppliers - Vehicles and Components

Damage from the Insured Perils to property at the premises of any

a) motor manufacturers or manufacturer of material or components supplied to such manufacturers

b) vehicle suppliers or distributors

all situate in Great Britain Northern Ireland the Channel Islands the Isle of Man or in any other member country of the European Union from which the Insured obtains regular supplies of Motor Vehicles components and accessories subject to a maximum of £250,000 for any one loss



11) Unspecified Suppliers - Fuel

Damage from the Insured Perils to property at the premises of any company or supplier situate in Great Britain Northern Ireland the Channel Islands the Isle of Man or in any other member country of the European Union from which the Insured obtains regular supplies of motor fuels subject to a maximum of £250,000 for any one loss

12) Unspecified Suppliers - Rest of the World

Damage from Insurable Perils 1 2 3 and 4 to property at the premises of any

a) motor manufacturers or manufacturer of material or components supplied to such manufacturers

b) vehicle suppliers or distributors

c) fuel supplier

anywhere outside the European Union from which the Insured obtains regular supplies of Motor Vehicles components accessories or fuel subject to a maximum of £100,000 for any one loss

Exclusions1) The Insurer shall not be liable for Increased Cost of Working due to

a) failure of any satellite prior to its obtaining its full operating function or while in or beyond the final year of its design life

b) atmospheric solar or lunar conditions causing temporary interference with transmission to or from any satellite

2) The Insurer shall not be liable under this Section for loss arising directly or indirectly from

a) erasure loss distortion or corruption of information on computer systems or other records programmes or software caused deliberately by rioters strikers locked out workers persons taking part in labour disturbances or civil commotion or malicious persons

b) other erasure loss distortion or corruption of information on computer systems or other records programmes or software unless resulting from the Insured Perils insofar as it is not otherwise excluded

Conditions1) Debit Recording and Storage

On a monthly basis the Insured shall record the total amount of Book Debts as set out in business books of account and such record shall be kept elsewhere than the Insured’s Premises

2) Declaration – applicable to Basis of Settlement 2) Gross Profit (declaration linked basis)

a) The Insured shall provide the Insurer with the Estimated Gross Profit based on the financial year most nearly concurrent with the forthcoming Period of Insurance prior to each renewal date

b) The Insured shall provide the Insurer with a declaration confirmed by the Insured’s auditors of the Gross Profit earned during the financial year most nearly concurrent with the expired Period of Insurance within six months of the expiry of the Period of Insurance

c) If any Damage has occurred giving rise to a loss of Gross Profit such declaration will be increased by the Insurer for the purpose of premium adjustment by the amount which the Gross Profit was reduced during the financial year solely in consequence of the Damage

d) Premiums are provisional and if the declaration of Gross Profit provided by the Insured and confirmed by the Insured’s auditors proportionately increased where the Maximum Indemnity Period exceeds 12 months is

i. less than the Estimated Gross Profit for the relevant Period of Insurance the Insurer will allow a pro rata return of premium not exceeding 50% of such premium paid

ii. greater than the Estimated Gross Profit for the relevant Period of Insurance the Insured shall pay a pro rata addition to the premium



Additional Cover

Engineering Damage Subject to the terms exclusions and conditions of this Policy Section 1 – Material Damage and Section 2 – Business Interruption where an Accident would be covered by Additional Cover – Engineering Damage under Section 1 – Material Damage this Additional Cover includes loss resulting from such an Accident

The liability of the Insurer in any one Period of Insurance shall not exceed £100,000 under this Additional Cover

Extensions to this Additional Cover

1) Reinstatement of Computer Data

The Insurer shall be liable for costs incurred in reinstating data lost or damaged in consequence of an Accident to or Derangement of Computer Equipment

The liability of the Insurer shall not exceed £50,000 for any one Accident

Provided that

a) liability is limited solely to the cost of reinstating data onto Media

b) the Insurer shall not be liable for loss of or damage to software

2) Computer Increased Cost of Working

The Insurer shall be liable for costs necessarily incurred in minimising or preventing the resulting interruption or interference to the computer operations of the Insured

The liability of the Insurer shall not exceed £50,000 for any one Accident in respect of such additional costs

3) Hire of Substitute Item

If Covered Engineering Equipment is damaged as a result of an Accident the Insurer shall be liable for the cost of hire charges actually incurred by the Insured during the Period of Insurance for the necessary hire of a substitute item of similar type and capacity during the period of repair or until permanent replacement of the item damaged subject to a maximum of £5,000 in respect of any one Accident


SECTION 3 – BUSINESS MONEY & PERSONAL ACCIDENT (ASSAULT)


All terms exclusions and conditions of Section 1 – Material Damage apply to this Section in addition to those shown below as applying to each Sub-Section

Business Money Sub-SectionFor the purposes of this Sub-Section Premises shall mean the main building(s) occupied by the Insured at the risk address stated in the Schedule

The Insurer will indemnify the Insured in respect of loss of or damage to Money and Non-Negotiable Money held in connection with the Business as detailed below occurring during the Period of Insurance

a) In the Premises during Business Hours

In an enclosed building at the Premises during Business Hours

b) In transit or on Contract Sites or in a Bank Night Safe

In transit in the custody of the Insured or an authorised person acting on behalf of the Insured or by registered post or at any of the Insured’s contract sites while Employees are working at such sites or in a bank night safe

c) Private Dwellings

In the private dwelling of the Insured or any authorised partner director or Employee of the Insured

d) In the Premises outside Business Hours not in a locked Safe

Not in a locked Safe or locked till in an enclosed building at the Premises outside Business Hours or in the custody of fuel sales Employees outside Business Hours

e) In the Premises outside Business Hours in a specified Safe

In a locked Safe (details of which shall be lodged with the Insurer by the Insured) in an enclosed building at the Premises outside Business Hours

f) In the Premises outside Business Hours in a locked Safe

In an unspecified locked Safe in an enclosed building at the Premises outside Business Hours

g) Non-Negotiable Money

Non-Negotiable Money in any of the situations described above

The liability of the Insurer under this Sub-Section shall be restricted to the Limits stated in the Schedule for any one loss

Extensions to Business Money Sub-Section

a) Damage to Safes

Damage to

i. any Safe Strongroom franking machine or automated teller machine for which the Insured is responsible

ii. any container or waistcoat whilst being used for carrying Money resulting from theft or attempted theft of Money up to an amount not exceeding the cost of repair or replacement

b) Damage to Clothing

Damage to clothing and personal effects belonging to the Insured or any partner or director of the Insured or Employee resulting from theft or attempted theft of Money up to an amount not exceeding £1,000 for any one person any one claim

c) Credit Cards

The Insurer will indemnify the Insured for any amount for which the Insured becomes liable under the terms of issue of any bank charge credit debit or cash card used only in connection with the Business following fraudulent use by any unauthorised person

The liability of the Insurer shall not exceed £500 during any one Period of Insurance

Provided that the Insured reports the loss to the issuing company immediately and to the Police within 24 hours of discovering the loss and has complied with the conditions of use of the card


SECTION 3 – BUSINESS MONEY & PERSONAL ACCIDENT (ASSAULT) CONTINUED

Conditions to Business Money Sub-Section

1) Theft Protections

a) The following Conditions of Section 1 – Material Damage shall apply to the insurance provided under this Sub-Section in respect Money and Non-Negotiable Money at the Premises

i. Condition 1) Intruder Alarm System (Condition 1 only applies where an Intruder Alarm Requirement is stated in the Schedule as being applicable under Section 1 – Material Damage)

ii. Condition 2) Minimum Level of Security

b) It is a condition precedent to the Insurer’s liability that when Money is left unattended in the private dwelling of the Insured or any authorised partner director or Employee of the Insured

i. all locks bolts and other protective devices are in full operation

ii. all keys must be held in the personal custody of the Insured or an authorised partner director or Employee and removed from the final exit door of the Insured’s or such authorised person’s unattended private dwelling house

2) Money Records

A complete record of all Money and Non-Negotiable Money at the Premises must be kept in a secure place other than in any Safe or other receptacle containing the Money or Non-Negotiable Money

3) Safe Keys

Safe Keys must be removed from the Premises outside Business Hours

4) Safes

Details of the Safes used for containing Money must be lodged with the Insurer by the Insured

5) Cash Tills

After Business Hours all cash tills must have their drawers left open with all contents other than small change removed elsewhere

6) Automated Teller Machines

a) Automated Teller Machine Units must be emptied at the end of each working day and the cash within transferred to a Safe approved by the Insurer for the amount of cash involved

Such transfer is to be carried out only after the Premises concerned has been cleared of all customers then locked to deny further access to that Premises and whilst there are at least two able bodied persons authorised by the Insured present in the Premises during the transfer

Alternatively the cash must be deposited in a bank night safe with the transfer to the bank being undertaken in accordance with the accompaniment requirements in Condition 7) of this Sub-Section

b) outside of Business Hours the automated teller machine door and security container within must be left open empty and unlocked

c) whenever the automated teller machine is opened the Premises concerned must be cleared of all customers then locked to deny further access to that Premises and at least two able bodied persons authorised by the Insured are present in the Premises

d) notices must be prominently displayed within the Premises concerned stating that the automated teller machine is protected by a smoke generating and/or banknote degradation system and holds no cash outside of working hours



7) Transit Limits

Money (other than Non-Negotiable Money) in transit must be accompanied by the following numbers of persons who shall be at least 18 years of age

Amount of money in transit at any one time Accompaniment requirement

Up to £3,000 1 person

Over £3,000 up to £6,000 2 persons

Over £6,000 up to £12,000 3 persons

Over £12,000 Approved Security Company

Exclusions to Business Money Sub-Section

The Insurer shall not be liable for loss

a) arising from theft or attempted theft fraud or dishonesty of any partner or director of the Insured or Employee if not discovered within 14 working days of the occurrence of the loss or where Additional Cover Theft by Employees is operative under Section 1 – Material Damage as shown in the Schedule

b) theft or attempted theft from the Premises as stated in the Schedule or any authorised person’s private dwelling house unless involving entry to or exit from such Premises or such private dwelling by forcible and violent means or actual or threatened hold up assault or violence

c) arising from shortage due to error or omission

d) arising from forgery deception or the use of counterfeit Money or Non-Negotiable Money

e) arising from the use of any form of payment which proves to be counterfeit false fraudulent invalid uncollectible or irrecoverable for any reason

f) from an unattended vehicle

g) arising from any business or other activity not connected with the Business conducted from the Premises as stated in the Schedule

h) occurring outside the Territorial Limits

i) due to errors omissions depreciation in value loss of market or indirect loss of any kind

Personal Accident (Assault) Sub-SectionThe Insurer will indemnify the Insured and any Employee for compensation in accordance with the Schedule of Benefits detailed below in respect of Physical Injury

Schedule of Benefits

1) Death occurring within 2 years of sustaining the Physical Injury

2) Loss of Limbs or Eyes occurring within 2 years of sustaining the Physical Injury

3) Permanent Total Disablement

4) Temporary Total Disablement

The liability of the Insurer under this additional cover shall be restricted to the Limits stated in the Schedule for any one loss

Exclusions to Personal Accident (Assault) Sub-Section


a) more than one of the Benefits 1 to 3 inclusive in respect of any one person arising out of the same Physical Injury

b) Benefits 1 to 4 inclusive in respect of any person under 18 at the time of sustaining the Physical Injury

c) Benefits 1 to 4 inclusive consequent upon any pre-existing physical or mental defect or infirmity



Conditions to Personal Accident (Assault) Sub-Section

1) All sums paid under Benefit 4 shall be deducted from any sum which may subsequently be paid under any of Benefits 1 to 3 inclusive in respect of the same Physical Injury

2) Payment under Benefit 3 is not payable before 104 weeks from the date of the Physical Injury

3) Benefit 4 is payable for a maximum of 104 weeks from the date of the Physical Injury

Extensions to Personal Accident (Assault) Sub-Section

For the purposes of these Extensions Insured Person shall mean the Insured or any partner director or Employee of the Insured aged not less than 18 years nor more than 65 years

The insurance provided by this Sub-Section extends to include the following

1) Victim Support

If as a result of the theft or attempt thereat of Money or other Non-Negotiable Money at any of the situations above or of other property insured under Section 1 – Material Damage from the Premises during Business Hours the Insured Person shall suffer social and/or emotional impairment following assault or violence or threat thereof the Insurer shall pay the fees for professional counselling but not exceeding

a) any hourly cost of more than £40

b) £1,000 for any Insured Person in respect of any one event

c) £5,000 in total for all Insured Persons in respect of any one event

2) Medical Expenses

In the event of Physical Injury to an Insured Person under this Sub-Section the Insurer will pay the cost of medical surgical or other remedial attention treatment or appliances given or prescribed by a qualified member of the medical profession and all hospital nursing home and ambulance charges up to a maximum amount of £1,000 any one Insured Person any one claim

General Conditions to Personal Accident (Assault) Sub-Section

1) death shall not be presumed by the disappearance of the Insured Person

2) in the event of death of an Insured Person the Insurer shall be entitled to have a post-mortem examination at its own expense

3) in the event of disablement of an Insured Person the Insured Person must immediately place themselves under the care of a qualified medical practitioner and as often as may be required submit to medical examination at the Insurer’s expense

4) all certificates information and evidence required by the Insurer shall be furnished at the expense of the Insured Person and shall be in such a form and of such a nature as the Insurer shall prescribe


SECTION 4 – WRONGFUL CONVERSION


The Insurer will indemnify the Insured in the event of any Motor Vehicle purchased by the Insured during the Period of Insurance within the Territorial Limits in connection with the Business of which there is a breach of implied warranty of title in that

a) the true owner thereof substantiates a valid claim for the return of the Motor Vehicle or its equivalent value

b) the person to whom the Insured has purported to have sold the Motor Vehicle substantiates a valid claim for damages in lieu of such vehicle being returned to its rightful owner

the Insurer will pay the Insured up to the Indemnity Limit stated in the Schedule in any one Period of Insurance

Provided that

a) all payments for Motor Vehicles purchased or allowances for part exchange shall be settled by cheque or credit against the new purchase

b) no payment must be made until H P Information Ltd or Experian confirm the vehicle is not the subject of hire purchase interest

Such confirmation in writing will be required by the Insurer in the event of a claim

Provided also that the Insurer shall not be liable for 20% of each and every claim under this Section


SECTION 5 – LOSS OF MOT LICENCE


If during the Period of Insurance the Insured’s MOT Licence is suspended or withdrawn by the Department of Transport and as a consequence the Business carried out by the Insured at the Premises is interrupted or interfered with the Insurer will pay to the Insured the amount of loss resulting from such interruption or interference in accordance with the Basis of Cover shown below

Basis of CoverThe amount payable shall be

a) the depreciation in value of the interest of the Insured in the Premises or the Business

b) reasonable charges payable to parties agreed by the Insurer for services provided to enable the Insured to appeal against a suspension or withdrawal of the MOT Licence by the Department of Transport

c) the loss of Gross Profit due to reduction in Turnover and Increased Cost of Working

i. the amount payable in respect of a reduction in Turnover shall be the sum produced by applying the Rate of Gross Profit to the amount by which the Turnover shall fall short of the Standard Turnover during the Period of Insurance as a result of the loss of MOT Licence

ii. the amount payable in respect of the Increased Cost of Working as a result of the loss of MOT Licence not exceeding the sum produced by applying the Rate of Gross Profit to the amount of any reduction in the Turnover thereby avoided

less any sum saved during the Period of Insurance in respect of such charges and expenses of the Business payable out of Gross Profit as may cease or be reduced as a result of the loss of MOT Licence

Provided that the maximum liability of the Insurer shall not exceed the Indemnity Limit shown in the Schedule

Definition applicable to this SectionMOT Licence

The licence granted by the Department of Transport to carry out MOT tests on Motor Vehicles and issued to the Insured as an authorised examiner or to a nominated tester employed by the Insured in connection with the Business

ConditionIt is a condition precedent to the Insurer’s liability under this Section that upon receipt of a formal warning letter from the Vehicle and Operator Services Agency the Insured must immediately notify and provide written confirmation to the Insurer of such warning letter together with copies of documentation received

ExclusionsThe Insurer shall not be liable for any loss arising from the loss of an MOT Licence due to

a) a suspension or warning received during the four weeks immediately following inception of cover under this Section

b) extension of or actual or proposed compulsory purchase of the Premises

c) any scheme of town or country planning improvement or development

d) any policy by the Department of Transport to reduce the number of authorised examiners and nominated testers

e) any alteration following inception of cover under this Section to any relevant law unless the Insurer confirms in writing that cover will continue after such alteration

f) failure to maintain the equipment or machinery at the Premises in good general repair

g) failure to keep accurate and up to date documentation as required by the Department of Transport and/or Vehicle and Operator Services Agency

h) a criminal conviction


SECTION 6 – ENGINEERING INSPECTION

This Section of the Policy is operative only if Option Level 1 or 2 is stated in the Schedule

Where the Insured contracts the Insurer to carry out an Inspection the Inspecting Authority will make periodical inspections of Statutory Plant

The Insured agrees to prepare and make available the Statutory Plant at no expense to the Insurer or the Inspecting Authority to enable the Inspecting Authority to carry out such inspections and report thereon

Section DefinitionsForce Majeure

Acts of nature (including fire flood earthquake storm hurricane or other natural disaster) war invasion act of foreign enemies hostilities (whether war is declared or not) civil war rebellion revolution insurrection military or usurped power or confiscation terrorist activities nationalisation government sanction blockage embargo labour dispute strike lockout or interruption or failure of power sources

Inspecting Authority

HSB Engineering Insurance Services Limited

Thorough Examination

A thorough examination of Statutory Plant in accordance with the requirements of the Statutory Regulations which apply to the Statutory Plant at the time of examination

Unless otherwise agreed in writing the scope of any such prescribed examination shall not include approval or verification of the fitness for purpose of any design or design features of Statutory Plant performing or witnessing tests of a non-routine nature (unless stipulated as the responsibility of the Competent Person in a HSE (Health & Safety Executive) or SAFed (Safety Assessment Federation) Approved Code of Practice or Guidance) including but not limited to

in the case of boiler/pressure Statutory Plant ultrasonic radiographic hydrostatic or other non-destructive testing

in the case of lifting and handling Statutory Plant any proof load stability anchorage supplementary or similar test in accordance with industry guidance or thorough examination as required when exceptional circumstances have occurred

in the case of mechanical power press Statutory Plant subject to the requirements of PUWER 98 Part IV the examination of enclosed parts and tests thereof

in respect of local exhaust ventilation Statutory Plant the initial appraisal of the Statutory Plant

Inspection

An inspection of Statutory Plant which is exempt or excluded from the requirement for a periodic thorough examination or examination in accordance with a Written Scheme as specified in the Statutory Regulations

Unless otherwise agreed in writing any such inspection will be visual in nature limited by the design of the Statutory Plant and the extent to which the Insured has prepared the Statutory Plant and made available a safe means of access to the Statutory Plant and may include such tests as are deemed appropriate to establish general condition and standard of Statutory Plant maintenance by a Competent Person

Any such inspection will not be deemed to comply with any specific regulations or Statutory Regulations unless specified in the Schedule

Normal Working Hours

8:00 a.m. to 6:00 p.m. Monday to Friday excluding public bank and local holidays

Insured

The owner/user of Statutory Plant subject to Thorough Examination/Inspection

Competent Person

An Engineer Surveyor employed and authorised by the Inspecting Authority to perform the Inspecting Authority Services


SECTION 6 – ENGINEERING INSPECTION CONTINUED

Inspecting Authority Services

a) the periodic performance of a Thorough Examination/Inspection of Statutory Plant within Normal Working Hours and

b) the provision of a Report of Thorough Examination/Inspection within a reasonable time or within legal requirements if prescribed by applicable Statutory Regulations

Report

A document in the Inspecting Authority’s standard format issued to the Insured electronically or on paper that provides details of the Thorough Examination/Inspection of the Statutory Plant that was undertaken

Site

The location(s) shown in the Schedule

Statutory Regulations

The following statutory regulations (as amended or extended by any enactment or statutory re-enactment thereof) as may be applicable to the Thorough Examination of Statutory Plant at the time of any such Thorough Examination

a) The Lifting Operations and Lifting Equipment Regulations

b) The Pressure Systems Safety Regulations

c) The Provision and Use of Work Equipment Regulations Part IV (“PUWER Part IV”)

d) The Control of Substances Hazardous to Health Regulations (as amended)

e) The Workplace (Health Safety and Welfare) Regulations

f) The Control of Major Accident Hazard Regulations

g) The Electricity at Work Regulations

h) The Dangerous Substances and Explosive Atmospheres Regulations

i) The Factories Act 1955 (as amended by the Safety in Industry Act 1980)

j) The Safety in Industry Act 1980

k) The Safety Health and Welfare at Work (General Application) (Amendment) Regulations

l) The Safety Health and Welfare at Work (Quarries) Regulations

Written Scheme

A document drawn up by a Competent Person in accordance with Regulation 8 of the Pressure Systems Safety Regulations which contains information about selected items of Statutory Plant that form a pressure system including but not limited to the parts which require examination and the nature and frequency of such examinations

Statutory Plant

Boiler/pressure plant lifting/handling plant and local exhaust ventilation plant

Thorough Examination/Inspection

Option 1

In respect of Statutory Plant

Boiler/pressure plant

Thorough Examination/Inspection of all pressure systems containing a relevant fluid which require a written scheme of examination under regulation 8 of The Pressure Systems Safety Regulations 2000

AND

Lifting/handling plant

Thorough Examination/Inspection of equipment used for the purpose of raising and/or lowering a load (where the load can include persons) as required by regulation 9 of The Lifting Operations & Lifting Equipment Regulations



Option 2

Option 1 plus

Local exhaust ventilation plant

Thorough Examination/Inspection and test of all systems used for the extraction of vehicle exhaust gases solvent or paint fumes and brake lining dust as required by regulation 9 of The Control of Substances Hazardous to Health Regulations

This excludes the initial appraisal or re-validation of such systems as may be required under the Health and Safety Guidance note HSG 258

Visual inspection of motors/compressors contained within qualifying pressure systems under the boiler/pressure plant included under Inspection Option 1

Provision of Inspecting Authority’s Services 1) The Inspecting Authority shall provide to the Insured the Inspecting Authority Services at the Site within Normal

Working Hours during the Period of Insurance subject to the terms and conditions of this Policy and in consideration of which the Insured shall pay the Premium

2) The Inspecting Authority will comply with the Insured’s safe systems of work provided such systems are notified to the Inspecting Authority in advance of any Thorough Examination/Inspection

3) During the Period of Insurance the Inspecting Authority may

a) decline to undertake any Thorough Examination/Inspection if at its sole discretion to do so would pose a health safety or welfare risk

b) appoint sub-contractors to provide services to support the Thorough Examination/Inspection and shall retain responsibility for the execution of any such sub-contracted work

c) make a charge in addition to the Premium shown in the Schedule if

i. the Insured requests and the Inspecting Authority agrees to perform Inspecting Authority Services outside Normal Working Hours

ii. the Insured requires additional hard copies of Reports

iii. the Insured fails to prepare or make the Statutory Plant available at the date and time agreed

iv. the Insured requires additional services

v. the Insured requires the Competent Person to undertake training or particular risk assessment specific to the Insured’s own premises or the Insured’s health safety and welfare procedures

Insured’s Responsibilities During the Period of Insurance the Insured shall

a) retain sole responsibility for the care custody and control of the Statutory Plant at all times

b) allow the Inspecting Authority access to the Site and Statutory Plant at such reasonable times during Normal Working Hours or as shall be agreed between the Insured and the Inspecting Authority

c) provide the Inspecting Authority with

i. a safe working environment on the Site on which the Statutory Plant is located

ii. a safe physical means by which to gain access to perform the Inspecting Authority Services

d) have the Statutory Plant properly prepared dismantled and reassembled as necessary in order to enable the Inspecting Authority to carry out the appropriate Thorough Examination/Inspection

e) cooperate with and upon request provide the Inspecting Authority with information and data relating to the Statutory Plant as required by the Competent Person to perform the Inspecting Authority Services including without limitation full information concerning any modification to the Statutory Plant that has been made since the last Thorough Examination/Inspection and in respect of Statutory Plant that is capable of being moved from one location to another the precise location of any such Statutory Plant



Premium

1) The Inspecting Authority shall charge premium for the provision of Inspecting Authority Services and any such premium shall be subject to Value Added Tax (or any other similar tax or duty levied by any government or other authority) at the appropriate rate

Any such taxes or duties will be payable by the Insured in addition to the premium

2) The premium shall be calculated on Statutory Plant as notified by the Insured to the Inspecting Authority at the start of the Period of Insurance and the Insured shall pay the premium at the start of the Period of Insurance or as otherwise agreed in writing between the parties

3) The Insured agrees that the Inspecting Authority may adjust the premium

a) to take into account any charges identified in Provision of Insurer’s Services 3 c) above

b) during and at the end of the Period of Insurance to take into account any Sites or individual items of Statutory Plant added to or deleted from the Schedule

c) upon any renewal of the Policy

d) where the Period of Insurance is greater than 12 months annually to take into account any changes to the Statutory Plant the intervals between Thorough Examination/Inspections and the retail price index and the Insured’s payment of any such adjusted premium shall be deemed acceptance by the Insured of the adjusted premium

Term and Termination 1) The term of this Policy is as shown in the Schedule unless terminated in accordance with 2) below

2) Where the Insured goes into liquidation or in the case of an individual or partnership the individual(s) become(s) bankrupt make(s) a voluntary arrangement with his or her (their) creditors or has (have) a receiver or administrator appointed

3) Where an event of Force Majeure delays a scheduled Thorough Examination/Inspection for more than 30 days

Confidentiality 1) Neither the Insured nor the Inspecting Authority shall disclose or communicate to any third party any technical

business or similar information relating to the business affairs of the other party obtained as a result of this Policy and neither party shall use the other party’s information for any purpose other than to perform its obligations under this Policy

2) Nothing in this Section shall impose an obligation of confidentiality on information that was already in the public domain that was rightfully in the possession of the party prior to the commencement of the Policy or that is required to be disclosed pursuant to any applicable law or regulatory body

3) Unless otherwise agreed between the parties all Reports and similar material prepared by the Inspecting Authority in connection with the Inspecting Authority Services shall be released only to the Insured or its designated representative

4) The Insurer may use data gathered in connection with the Inspecting Authority Services for statistical use

5) The obligations under this Section shall come into effect at the start of the Period of Insurance and shall survive termination of the Policy

Limitation of Liability and Indemnification 1) Neither the Inspecting Authority nor any of its employees shall be liable directly or indirectly for any loss damage or

injury to property or persons resulting from any accident or defect in any Statutory Plant nor shall the Inspecting Authority be liable directly or indirectly for loss damage or injury of any kind arising from or connected in any way with any Inspecting Authority Services or documentation of any Inspecting Authority Services including but not limited to Reports or from the omission of any Inspecting Authority Services or documentation of any Inspecting Authority Services including but not limited to Reports whether or not such Inspecting Authority Services documentation or omission was at the request of the Insured



2) Neither the Inspecting Authority nor any of its employees makes any warranty express or implied concerning the activities described in this Policy

3) Notwithstanding anything else in this Policy to the contrary to the fullest extent permitted by law

a) the Inspecting Authority shall not be liable to the Insured for any special incidental indirect consequential or exemplary damages including but not limited to loss of profits or revenue loss of use loss of opportunity loss of goodwill cost of substitute facilities goods or services cost of capital governmental and regulatory sanctions and claims of third parties for such damages

b) the total cumulative liability of the Inspecting Authority to the Insured whether in tort or in contract for all claims losses damages and expenses resulting in any way from this Policy shall not be greater than the total amount received by the Inspecting Authority from the Insured as premium during the Period of Insurance

c) except in the case of death or personal injury caused by the Inspecting Authority’s negligence or in other circumstances where liability may not be so limited under applicable law the Inspecting Authority’s liability under or in connection with this Policy whether arising in contract tort negligence breach of statutory duty or otherwise shall not exceed the sum of £5,000,000 (five million pounds)

4) The Insured shall indemnify and keep the Inspecting Authority indemnified in respect of any claims made against and all damages costs and expenses suffered or incurred by the Inspecting Authority as a result of any third party claim arising out of the Insured’s failure to comply with its obligations under the Policy

5) Upon completion of the Inspecting Authority Services or termination of this Policy the provisions relating to indemnity waivers limitations of remedies and limitations of liability including but not limited to those contained in this Section shall remain in full force and effect

Force MajeureThe Inspecting Authority shall not be liable for any delay or the consequences of any delay in performing the Inspecting Authority Services if such delay is due to any cause beyond its reasonable control and shall be entitled to a reasonable extension of time for performance of the Policy


SECTION 7 – EMPLOYERS’ LIABILITY


In the event of Injury sustained by any Employee of the Insured caused during the Period of Insurance and arising out of and in the course of their employment by the Insured for the purposes of the Business within the Territorial Limits the Insurer will indemnify the Insured in respect of all sums for which the Insured become legally liable to pay as compensation and claimant’s costs and expenses in respect of such Injury

The Insurer will also pay Legal Costs and Solicitors’ Fees

Limit of Indemnity The liability of the Insurer under this Section for compensation and claimant’s costs and expenses (and Legal Costs and Solicitors’ Fees) in respect of one occurrence or all occurrences of a series consequent on or attributable to one source or original cause shall not exceed the Limit of Indemnity stated in the Schedule

Section DefinitionTerritorial Limits

a) Great Britain Northern Ireland the Isle of Man or the Channel Islands

b) elsewhere in the world in respect of Injury sustained by any Employee resident within the territories specified in a) above and caused whilst such Employee is temporarily outside these territories provided that any action for compensation in respect of such Injury is brought in a court of law within the territories specified in a) above or any other member country of the European Union

Extensions to Section 71) Court Attendance Compensation

The Insurer will indemnify the Insured for the costs of attendance at court to help defend or act as a witness in connection with any claim for which the Insured is entitled to indemnity under this Section and with the Insurer’s agreement up to a maximum of £250 per day per person

2) Health and Safety at Work – Legal Defence Costs

The Insurer will indemnify the Insured and at the Insured’s request any director or partner of the Insured or any Employee against Legal Costs incurred in defending prosecutions for a breach of the Health and Safety at Work Act 1974 or similar legislation in Northern Ireland the Channel Islands or the Isle of Man committed or alleged to have been committed in the course of the Business during the Period of Insurance. The Insurer will also pay prosecution costs awarded and the costs incurred with its written consent in appealing against any judgment given

Provided that this indemnity shall not apply to the payment of fines or penalties

3) Indemnity to Other Parties

If the Insured so request the Insurer will indemnify the following parties

a) any officer or committee member or other member of the Insured’s canteen social sports or welfare organisations or ambulance first aid fire medical or security services (but excluding medical practitioners) against liability incurred in such capacity

b) any partner director or Employee of the Insured against liability incurred in such capacity and in respect of which the Insured would have been entitled to indemnity under this Section if the claim had been made against the Insured as though each party was individually named as the Insured in this Section

c) any Principal for whom the Insured have agreed to execute work under contract or agreement against liability arising out of the performance of such work by the Insured and in respect of which the Insured are legally liable and would have been entitled to indemnity under this Section if the claim had been made against the Insured

Provided that

i. each such party shall observe fulfil and be subject to the terms and conditions of this Section insofar as they can apply

ii. the Insurer’s liability to the Insured and all parties indemnified shall not exceed in total the Limit of Indemnity stated in the Schedule


SECTION 7 – EMPLOYERS’ LIABILITY CONTINUED

4) Unsatisfied Court Judgments

In the event of a judgment for damages being obtained by any Employee or the personal representatives of any Employee in respect of Injury caused to the Employee during any Period of Insurance and occurring in connection with the Business against any person or company operating from premises in Great Britain Northern Ireland the Channel Islands or the Isle of Man in any court situate in these territories and remaining unsatisfied in whole or in part six months after the date of such judgment the Insurer will at the Insured’s request pay to the Employee or the personal representatives of the Employee the amount of such damages and any awarded costs to the extent that they remain unsatisfied

Provided that

a) there is no appeal outstanding

b) if any payment is made under the terms of this Extension the Employee or the personal representatives of the Employee shall assign the judgment to the Insurer

5) Corporate Manslaughter and Corporate Homicide – Legal Defence Costs

The Insurer will indemnify the Insured against Legal Costs incurred with the Insurer’s written consent in defending prosecutions under the Corporate Manslaughter and Corporate Homicide Act 2007 committed or alleged to have been committed in the course of the Business during the Period of Insurance. The Insurer will also pay prosecution costs awarded and the costs incurred with its written consent in appealing against any judgment given provided that this indemnity shall not apply to the payment of fines or penalties or the costs of remedial orders or publicity orders

Additional CoverAll terms exclusions and conditions of Section 7 apply to this Additional Cover

Injury to Working Partners This Additional Cover is operative only if stated in the Schedule

For the purposes of Section 7 – Employers’ Liability any working partner named as an Insured in the Schedule shall be regarded as an Employee but only in respect of Injury sustained while working in connection with the Business and for which a partner or Employee of the Insured is legally liable

ExclusionsThe indemnity granted under this Section shall not apply to

1) liability in respect of Injury to any Employee arising out of the ownership possession or use by or on behalf of the Insured of any mechanically propelled vehicle or trailer attached thereto if such liability is required by the Road Traffic Acts to be the subject of compulsory insurance or other security

2) liability in respect of Injury to any Employee who is working in or on any Offshore Installation or any support vessel for any Offshore Installation or whilst in transit to or from any Offshore Installation or support vessel

Conditions1) Certificate of Employers’ Liability Insurance

If this Policy or Section is cancelled any Certificate of Employers’ Liability Insurance is similarly cancelled from the same date

2) Compulsory Insurance Legislation

The indemnity granted by this Section is deemed to be in accordance with the provisions of any law relating to compulsory insurance of liability to Employees in the Territorial Limits but the Insured shall repay to the Insurer all sums paid by the Insurer which the Insurer would not have been liable to pay but for the provisions of such law


SECTION 7 – EMPLOYERS’ LIABILITY CONTINUED

3) Discharge of Liability

The Insurer may at any time pay to the Insured in connection with any claim or series of claims

a) the amount of the Limit of Indemnity or

b) any lesser amount for which such claim or claims can be settled less any sum or sums already paid as compensation claimant’s costs and expenses Legal Costs and Solicitors’ Fees recoverable prior to the date of such payment

On payment the Insurer shall relinquish the conduct and control of and be under no further liability in connection with such claim or claims except for the payment of costs and expenses incurred prior to the date of such payment

4) Other Insurances

If any claim under this Section is also covered in whole or in part by any other existing insurance or by an indemnity from any other source the liability of the Insurer shall be limited to any excess beyond the amount which would have been payable under such other insurance or from such other source had this Section not been effected


SECTION 8 – PUBLIC AND PRODUCTS LIABILITY AND DEFECTIVE WORKMANSHIP

This Section of the Policy and Sub-Section A and Sub-Section B of this Section are operative only if stated in the Schedule

Sub-Section A – Public and Products LiabilityIn the event of accidental

a) Injury to any person

b) physical loss of or physical damage to material property

c) obstruction trespass nuisance or interference with any right of way light air or water

d) wrongful arrest detention imprisonment or eviction of any person malicious prosecution or invasion of the right of privacy

occurring during the Period of Insurance and arising out of ownership of the Premises or in the course of the Business within the Territorial Limits the Insurer will indemnify the Insured in respect of all sums which the Insured become legally liable to pay as compensation and claimant’s costs and expenses

The Insurer will also pay Legal Costs and Solicitors’ Fees

Limit of Indemnity applying to Sub-Section A The liability of the Insurer under this Sub-Section for compensation in respect of

a) one occurrence or all occurrences of a series consequent on or attributable to one source or original cause

b) all Injury and damage occurring during any one Period of Insurance in respect of Products Supplied

c) all Pollution or Contamination which is deemed to have occurred during any Period of Insurance

shall not exceed the Limit of Indemnity stated in the Schedule

Conditions applying to Sub-Section A1) Costs inclusive in USA and Canada

Where indemnity is provided by this Sub-Section for liability in respect of occurrences in the United States of America or Canada or their dependencies or trust territories the Limit of Indemnity stated in the Schedule shall be the maximum amount payable and due by the Insurer inclusive of all costs and expenses

2) Contractual Liability

The indemnity provided by this Sub-Section will not apply to liability which attaches because of a contract or agreement but which would not have attached in the absence of such contract or agreement

3) Damage to property worked upon

The indemnity provided by this Sub-Section shall not apply to liability caused by or arising from damage to property sustained whilst being worked upon and directly resulting from such work

Definition applying to Sub-Section A Territorial Limits

a) Great Britain Northern Ireland the Isle of Man or the Channel Islands

b) and in respect of Products Supplied anywhere in the world except for the United States of America or Canada or their dependencies or trust territories unless specifically agreed by the Insurer provided that the Products Supplied are supplied from or are worked upon in the territories specified in a) above

Extensions applying to Sub-Section A1) Consumer Protection and Food Safety Acts - Legal Defence Costs

The Insurer will indemnify the Insured and at the Insured’s request any director partner or Employee of the Insured against Legal Costs incurred with the Insurer’s written consent in connection with the defence of any proceedings or an appeal against conviction arising from such proceedings brought for a breach of

a) Part 2 of the Consumer Protection Act 1987 or


SECTION 8 – PUBLIC AND PRODUCTS LIABILITY AND DEFECTIVE WORKMANSHIP CONTINUED

b) Section(s) 7 8 14 and/or 15 of the Food Safety Act 1990

committed or alleged to have been committed in the course of the Business during the Period of Insurance

Provided that this indemnity shall not apply to

i. the payment of fines or penalties

ii. proceedings or appeals in respect of any deliberate act or omission by the Insured

iii. costs or expenses insured by any other policy

2) Court Attendance Compensation

The Insurer will indemnify the Insured for the costs of attendance at court to help defend or act as a witness in connection with any claim for which the Insured is entitled to indemnity under this Sub-Section and with the Insurer’s agreement up to a maximum of £250 per day per person

3) Cross Liabilities

Where the Insured comprises more than one party the Insurer shall treat each party as the Insured as if a separate Policy had been issued to each provided that nothing in this Extension shall increase the liability of the Insurer beyond the amount for which the Insurer would have been liable had this Extension not applied

4) Data Protection Act

The Insurer will indemnify the Insured against liability at law incurred by the Insured under Section 13 of the Data Protection Act 1998 in connection with personal data (as defined in such Act) held by the Insured provided always that the Insurer shall not be liable for

a) the payment of fines and penalties

b) the cost of replacing reinstating rectifying or erasing any personal data

5) Defective Premises Act

The Insurer will indemnify the Insured in respect of any legal liability incurred by the Insured during the Period of Insurance under the terms of the Defective Premises Act 1972 or the Defective Premises (Northern Ireland) Order 1975 in connection with any business premises or land which have been disposed of by the Insured

Provided that the Insurer shall not be liable

a) for the cost of remedying any defect or alleged defect in the premises disposed of

b) if the Insured is entitled to indemnity from any other source

6) Health and Safety at Work – Legal Defence Costs

The Insurer will indemnify the Insured and at the Insured’s request any director or partner of the Insured or any Employee against Legal Costs incurred in defending prosecutions for a breach of the Health and Safety at Work Act 1974 or similar legislation in Northern Ireland the Channel Islands or the Isle of Man committed or alleged to have been committed in the course of the Business during the Period of Insurance. The Insurer will also pay prosecution costs awarded and the costs incurred with its written consent in appealing against any judgment given

Provided that this indemnity shall not apply to the payment of fines or penalties

7) Indemnity to Other Parties

If the Insured so request the Insurer will indemnify the following parties

a) any officer or committee member or other member of the Insured’s canteen social sports or welfare organisations or ambulance first aid fire medical or security services (but excluding medical practitioners) against liability incurred in such capacity

b) any partner director or Employee of the Insured against liability incurred in such capacity and in respect of which the Insured would have been entitled to indemnity under this Sub-Section if the claim had been made against the Insured as though each party was individually named as the Insured under this Sub-Section



c) any Principal for whom the Insured have agreed to execute work under contract or agreement against liability arising out of the performance of such work by the Insured and in respect of which the Insured are legally liable and would have been entitled to indemnity under this Sub-Section if the claim had been made against the Insured

Provided that

i. each such party shall observe fulfil and be subject to the terms and conditions of this Sub-Section and of Section 8 insofar as they can apply

ii. the Insurer’s liability to the Insured and all parties indemnified shall not exceed in total the Limit of Indemnity for Public and Products Liability as stated in the Schedule

8) Motor Contingent Liability

The Insurer will indemnify the Insured against legal liability arising out of the use of any motor vehicle in the course of the Business anywhere in Great Britain Northern Ireland the Channel Islands or the Isle of Man

Provided that the Insurer shall not be liable for

a) any vehicle owned or provided by the Insured or any Principal for whom the Insured is working or

b) any sub-contractor acting for or on behalf of the Insured

c) damage to such vehicle or to goods conveyed in or on it

d) any vehicle being driven by the Insured

e) any vehicle being driven by any person who to the knowledge of the Insured or of the Insured’s representative 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

f) in respect of which the Insured is entitled to indemnity under any other insurance

9) Overseas Personal Liability

The Insurer will indemnify the Insured and if the Insured so request any director or partner of the Insured or any Employee or spouse of such person against legal liability incurred in a personal capacity whilst temporarily outside Great Britain Northern Ireland the Channel Islands or the Isle of Man in connection with the Business

The indemnity shall not apply to legal liability

a) arising out of ownership or occupation of land and buildings

b) in respect of which any person referred to above is entitled to indemnity under any other insurance

10) Corporate Manslaughter and Corporate Homicide – Legal Defence Costs

The Insurer will indemnify the Insured against Legal Costs incurred with the Insurer’s written consent in defending prosecutions under the Corporate Manslaughter and Corporate Homicide Act 2007 committed or alleged to have been committed in the course of the Business during the Period of Insurance

The Insurer will also pay prosecution costs awarded and the costs incurred with its written consent in appealing against any judgment given provided that this indemnity shall not apply to the payment of fines or penalties or the costs of remedial orders or publicity orders

Exclusion to Sub-Section A 1) Property in the Charge or Control of the Insured

Liability in respect of loss or damage to any property belonging to or in the charge or control of the Insured other than

a) personal effects or vehicles of any partner director or Employee of or visitor to the Insured

b) premises (and their contents) not belonging leased rented or hired to the Insured but temporarily in the charge of the Insured for the purpose of carrying out work

c) premises (including their fixtures and fittings) leased rented or hired to the Insured but this Section does not cover liability attaching to the Insured solely under the terms of any tenancy or other agreement



Sub-Section B - Defective Workmanship The Insurer will subject to the Limit of Indemnity stated in the Schedule indemnify the Insured in respect of the Contingencies stated below against

a) all sums which the Insured shall become legally liable to pay as damages including interest thereon and

b) claimants’ costs and expenses

in respect of the Occurrences stated below and

c) all costs and expenses incurred by the Insured with the Insurer’s written consent in defending any claim

d) solicitor’s fees incurred with the Insurer’s written consent for representation at proceedings in any court of summary jurisdiction in respect of any alleged act causing or relating to any Occurrence which may be the subject of indemnity under this Sub-Section or at any coroner’s inquest or fatal accident inquiry

Definitions applying to Sub-Section B Contingencies

a) the repair servicing or maintenance of any Motor Vehicle including the supply of parts components or accessories relevant to such work

b) the examination of Motor Vehicles in accordance with the Motor Vehicles (Tests) Regulations

c) the pre-delivery check of new vehicles as required by the manufacturers and the fitting of additional accessories to them

d) the sale of Motor Vehicles or any other goods including any containers relevant to the Business

Territorial Limits

Great Britain Northern Ireland the Isle of Man or the Channel Islands

Interpretations applying to Sub-Section B Insured shall include

a) personal representatives of the Insured in the event of the death of the Insured but only in respect of liability incurred by the Insured

b) if the Insured so requests

i. any director partner or Employee of the Insured while acting in connection with the Business provided that the Insured would have been entitled to indemnity under this Sub-Section if the claim had been made against the Insured

ii. any officer or member of the Insured’s canteen sports social or welfare organisations and fire security first aid medical and ambulance services in their respective capacity as such

Provided that such persons shall observe fulfil and be subject to the terms conditions Exclusions and limits of this Sub-Section and of Section 8 in so far as they can apply

Occurrences

a) accidental Injury to any person

b) accidental physical loss of or physical damage to material property

occurring anywhere within the Territorial Limits during the Period of Insurance and caused by any Contingencies performed effected sold or supplied by the Insured in or from Great Britain Northern Ireland the Isle of Man or the Channel Islands in connection with the Business

Limit of Indemnity applying to Sub-Section BThe Insurer’s liability under this Sub-Section for all damages including interest thereon payable in respect of all Occurrences during any one Period of Insurance shall not exceed the Limit of Indemnity stated in the Schedule



Conditions applying to Sub-Section B1) Costs Inclusive in U.S.A. and Canada

Where indemnity is provided by this Sub-Section for liability in respect of Occurrences in the United States of America or Canada or their dependencies or trust territories the Limit of Indemnity stated in the Schedule shall be the maximum amount payable by the Insurer inclusive of all costs and expenses

2) Contractual Liability

The indemnity provided by this Sub-Section will not apply to liability assumed by the Insured under agreement other than under any condition or warranty of goods implied by law unless such liability would have attached in the absence of such agreement

3) Actions Brought Elsewhere in the World

In respect of legal liability

a) arising in any country not being a member of the European Union or

b) any action for damages brought in that country or

c) if any subsequent action is brought elsewhere in the world

the Limit of Indemnity stated in the Schedule for Defective Workmanship shall be the maximum payable by the Insurer inclusive of all costs and expenses

Exclusions applying to Sub-Section B The Insurer shall not be liable under this Sub-Section in respect of

a) any claim arising whilst any Motor Vehicle is being driven by or on behalf of the Insured on a road or public highway within the meaning of the Road Traffic Acts

b) the cost of repair reinstatement or rectification of the original repair servicing or maintenance work by or on behalf of the Insured which gives rise to a claim under this Sub-Section

c) the cost of repair alteration replacement removal or recall of

i. any Motor Vehicle other than in respect of damage to such Motor Vehicle arising as a direct result of any of the activities described by Contingencies a) b) and c) having been carried out by or on behalf of the Insured

ii. any other Products Supplied including parts components and accessories by or on behalf of the Insured in connection with the Business which gives rise to a claim under this Sub-Section or any refund for such Motor Vehicle or Products Supplied

Excess applying to Sub-Section B The Insurer shall not be liable for the first amount of each and every claim under this Extension in respect of damage to Customers’ Vehicles undergoing work as applying to Section 8 Public and Products Liability and Defective Workmanship

Additional Cover Extensions applying to Sub-Section B 1) Merchantable Quality

The Insurer will indemnify the Insured against legal liability for damages and claimants’ costs and expenses in respect of any claim for Financial Loss first made against the Insured during the Period of Insurance

Provided that the liability of the Insurer in respect of all claims made against the Insured during any one Period of Insurance including costs and expenses incurred with the Insurer’s written consent in the defence and settlement of any claims shall not exceed the Limit of Indemnity stated in the Schedule for Merchantable Quality

For the purposes of this Additional Cover Extension Financial Loss means

a pecuniary loss cost or expense incurred by any retail purchaser in connection with any Motor Vehicle or other Products Supplied including parts components and accessories by the Insured or any Employee of the Insured in or from Great Britain Northern Ireland the Isle of Man or the Channel Islands in connection with the Business which is not of merchantable quality or reasonably fit for the purpose for which it is intended



Exclusions to this Additional Cover Extension

The indemnity provided by this Additional Cover Extension shall not apply to

a) Financial Loss resulting from Injury loss or damage to property

b) liability which attaches to the Insured by reason of an express term of contract unless liability would have attached to the Insured in the absence of such term

c) the cost of repair alteration replacement removal or recall of any Products Supplied including parts components and accessories by or on behalf of the Insured

d) liability arising from any professional act error omission or advice

e) Products Supplied which to the knowledge of the Insured are exported directly or indirectly to the United States of America or Canada or their dependencies or trust territories unless otherwise agreed by the Insurer

f) claims which arise out of any circumstances notified to previous insurers or circumstances known to the Insured at the inception of this this Additional Cover Extension which may give rise to a claim for Financial Loss

g) the first £250 of each and every claim under this Additional Cover Extension

Special provision applying to this Additional Cover Extension

If during the currency of this Policy the Insured become aware of any circumstances which may be likely to give rise to a claim falling under this Additional Cover Extension and the Insured give written notice to the Insurer of such circumstances during the Period of Insurance any claim which may subsequently be made against the Insured arising out of the circumstances of which notification has been given shall be deemed to be a claim arising during the period of this Policy whenever such claim may actually be made

2) Damage to Own Motor Vehicles

The Insurer will indemnify the Insured against damage to any Motor Vehicle belonging to or hired by the Insured occurring during the Period of Insurance in connection with the Business and caused by or arising from any of the activities described by Contingencies a) b) and c) above having been carried out by or on behalf of the Insured

Provided that the liability of the Insurer shall not exceed the Limit of Indemnity stated in the Schedule for Damage to own Motor Vehicles in respect of all claims in any one Period of Insurance

In the event of damage giving rise to a claim falling under this Additional Cover Extension the Insurer may at the Insurer’s option repair reinstate or replace such Motor Vehicle or part thereof or make good the damage by payment of money

If the Insurer elects or becomes bound to repair reinstate or replace such Motor Vehicle or part thereof the Insurer shall not be bound to reinstate exactly or completely but only as circumstances permit and in a reasonably sufficient manner

Exclusions to this Additional Cover Extension

The indemnity provided by this Additional Cover Extension shall not apply to

a) any claim arising whilst any Motor Vehicle is being driven by or on behalf of the Insured

b) any damage sustained whilst the Motor Vehicle is actually undergoing any of the activities described by Contingencies a) b) and c) above

c) any damage caused by or arising from wear and tear depreciation or mechanical or electrical breakdown or failure

d) any amount in excess of the market value of the Motor Vehicle at the time the damage occurs

e) the first £250 of each and every claim under this Additional Cover Extension



Exclusions applying to Sub-Section A and Sub-Section B of Section 8The indemnity granted under Sub-Section A and Sub-Section B shall not apply to

1) Advice and Design

Liability arising from advice design formula specification inspection certification or testing provided by or on behalf of the Insured for a fee or in circumstances where a fee would normally be charged

2) Damage to Goods Supplied

Liability in respect of

a) damage to any goods or other property sold supplied delivered installed or erected by or on behalf of the Insured

b) all costs of or arising from the need for making good removal repair rectification replacement or recall of any such goods or property or any defective work carried out by or on behalf of the Insured

3) Tyre Fitters and Dealers

Liability caused by or arising from the sale supply or fitting of

a) race tyres

b) tyres re-moulded re-cut or re-treaded by the Insured other than commercial vehicle tyres re-cut in accordance with the manufacturer’s instructions

c) tyres imported by the Insured

d) second-hand or part-worn tyres

4) Safety Critical Products

Liability in respect of

a) any Products Supplied which to the knowledge of the Insured are to be used as a critical part in connection with aircraft hovercraft aerial or aero spatial devices watercraft drilling platforms or rigs railways railway locomotives or carriages operational areas of gas chemical nuclear petrochemical or power generation plants or mines

b) any Products Supplied which are second-hand and safety critical including the fitting of such items

5) Exports to USA and Canada

Liability in respect of any Products Supplied knowingly exported directly or indirectly to the United States of America or Canada or their dependencies or trust territories

6) Fines

Liability in respect of liquidated damages fines penalties exemplary punitive aggravated or multiplied damages

7) Injury to Employees

Liability in respect of Injury to any Employee arising out of and in the course of the employment or engagement of such person by the Insured

8) Mechanically Propelled Vehicles

Liability arising out of the ownership possession or use by or on behalf of the Insured of any mechanically propelled vehicle or trailer attached thereto which is required by any the Road Traffic Acts to be the subject of compulsory insurance or other security but this Exclusion shall not apply

a) while such vehicle is being used as a tool of trade other than on a road or public highway within the meaning of the Road Traffic Acts

b) in respect of the loading or unloading of such vehicle or the delivery or collection of goods to or from such vehicle

except where more specifically insured by any other policy



9) Pollution or Contamination

Liability arising

a) out of Pollution or Contamination unless caused by a sudden identifiable unintended and unexpected incident which takes place in its entirety at a specific time and place during the Period of Insurance provided that all Pollution or Contamination arising out of one incident shall be deemed to have occurred at the time such incident takes place

b) directly or indirectly by Pollution or Contamination occurring in the United States of America or Canada or their dependencies or trust territories

10) Vessels or Craft

Liability arising out of ownership possession or use by or on behalf of the Insured of any vessel or craft designed to travel in on or through water air or space (other than hand-propelled watercraft)

11) Work on Offshore Installations

Liability in respect of Injury loss or damage in or on any Offshore Installation or any support vessel for any Offshore Installation or whilst in transit to or from any Offshore Installation or support vessel

12) Asbestos

Any liability of whatsoever nature arising out of the manufacture mining processing distribution testing remediation removal storage disposal sale use of or exposure to asbestos or materials or products containing asbestos

This Exclusion shall not apply in respect of such removal storage or disposal provided that

a) the Insurer’s liability in respect of Injury loss or damage occurring during any one Period of Insurance shall not exceed £2,000,000 in the aggregate or the amount of the Limit of Indemnity for this Section as stated in the Schedule whichever is the lower

b) such activity does not form part of the Insured’s usual trade or Business or contract

c) the discovery of asbestos by the Insured is unintentional and accidental

d) upon discovery of asbestos or products made entirely or mainly of asbestos all work immediately stops

e) an HSE licensed asbestos removal contractor who has Employers’ Liability and Public and Products Liability insurances in force that

i. provide Limits of Indemnity no less than those stated in the Schedule and

ii. do not exclude the work to be carried out

is contracted if legally required to make safe the area in which the discovery is made as soon as is practicable

Conditions applying to Sub-Section A and Sub-Section B of Section 81) Products Supplied

It is a condition precedent to the Insurer’s liability under this Section that

a) they are supplied as received by the Insured without alteration change modification adjustment variation adaptation or amendment and that

b) the Insured shall maintain and retain adequate records of all suppliers of Products Supplied to them

2) Pre-Sale Checks

It is a condition precedent to the Insurer’s liability under this Section that the Insured shall ensure

a) that every vehicle sold is inspected by a competent motor engineer or mechanic and

b) any faults found are rectified and

c) such inspection is in addition to any MOT check completed on the vehicle

prior to its delivery to the customer



3) Discharge of Liability

The Insurer may at any time pay to the Insured in connection with any claim or series of claims

a) the amount of the Limit of Indemnity or

b) any lesser amount for which such claim or claims can be settled less any sum or sums already paid as compensation claimant’s costs and expenses Legal Costs and Solicitors’ Fees recoverable prior to the date of such payment

On payment the Insurer shall relinquish the conduct and control of and be under no further liability in connection with such claim or claims except for the payment of costs and expenses incurred prior to the date of such payment

4) Other Insurances

If any claim under this Section is also covered in whole or in part by any other existing insurance or by an indemnity from any other source the liability of the Insurer shall be limited to any excess beyond the amount which would have been payable under such other insurance or from such other source had Sub-Section A or Sub-Section B of this Section not been effected

5) Heat Application Condition

It is a condition precedent to any liability of the Insurer that the following precautions are complied with in respect of any work involving the use or application of heat involving a naked flame open heat source angle grinder hot air stripper or the heating of bitumen or similar bituminous compounds anywhere other than at the Insured’s Premises

a) the area in the immediate vicinity of the application of heat must be cleared of any loose combustible materials before work commences

b) other combustible materials including floors and walls must be covered by overlapping sheets of non-combustible material

c) blow lamps and torches must be filled in the open and only kept lit for the time they are in use

d) any sources of heat used must be continuously attended

e) at least one suitable fire extinguisher must be kept in the area where the heat is being applied

f) a thorough inspection for any signs of combustion within adjacent to behind and below the area being worked on must be undertaken after each separate application of heat and also 60 minutes after the completion of the period of work

6) Bona Fide Subcontractors

It is a condition precedent to any liability of the Insurer in respect of injury loss destruction or damage arising out of work carried out on behalf of the Insured by bona fide subcontractors commencing during the Period of Insurance that the Insured obtain and retain a written record that such subcontractors have in force throughout the duration of any work undertaken by them for the Insured the following insurance

a) Employers’ Liability insurance in accordance with any law relating to compulsory insurance of liability to employees

b) Public Liability insurance covering legal liability for Injury to any person other than described in a) above and loss destruction or damage to property with a limit of indemnity of not less than the Limit of Indemnity stated in the Schedule

This condition shall not apply where bona fide subcontractors are engaged to carry out work on behalf of the Insured in an emergency and there is insufficient time to obtain a written record from such subcontractor provided that the Insured shall obtain verbal confirmation and confirm such confirmation in writing and retain a copy as a written record


SECTION 9 – LEGAL EXPENSES

The Insurer will only indemnify the Insured for Claims where the dispute and/or legal proceedings and/or HMRC Investigation are or would be within the Territorial Limits and the Claim is notified to the the Insurer’s appointed representative Lyons Davidson Solicitors during the Period of Insurance and is in connection with the activities within the scope and extent of the Business activities of the Insured as specified in the Schedule

If the Insured’s Claim is covered under this Section and no exclusions apply then it is vital that the Insured complies with the conditions of this Section in order for the Insured’s Claim to proceed. The conditions applicable to this Section are contained below and should be read carefully. Two of the main conditions to this Section are that the Claim has Prospects of Success and that costs associated with the Claim are Proportional

Section DefinitionsLV= Legal Line

As specified in the Schedule. The legal advice is provided by Lyons Davidson Solicitors who are authorised and regulated by the Solicitors Regulation Authority. Lyons Davidson Solicitors make no charge to the Insured for providing these services. Calls to the LV= Legal Line may be recorded. The Insured agrees that in all circumstances the Insurer’s Representative has the Insured’s express permission to review/listen to any call for auditing and monitoring purposes

Acts of Parliament

All Acts of Parliament referred to in the Policy shall include any subsequent amendments re-enactments or regulations and equivalent legislation enforceable within the Territorial Limits

Any One Claim

All Claims consequent upon the same original cause event or circumstance

Appointed Representative

A solicitor barrister or other appropriately qualified person appointed to act for the Insured in accordance with the terms of the Policy

Awards of Compensation

Basic and Compensatory Awards and compensation for unlawful discrimination made against the Insured by an Employment Tribunal or settlement thereof subject to the consent of the Insurer’s Representative but not including Additional Awards Protective Awards Interim Relief Arrears of Pay or Awards of Damages under the Equal Pay Act or arising out of failure to comply with awards in respect of reinstatement or re-engagement or any awards made under the Agency Workers Regulations. The Insurer will not pay any fine award or damages incurred by deliberately avoiding a payment or liability under statutory requirements. The Insurer will not pay any redundancy payment or any monies due or properly payable arising under or from a contract of employment service agreement or related document or from any related implied or incorporated terms of a contract of service

Claim

A claim under the Policy for Legal Expenses Professional Expenses Awards of Compensation or Jury Service Allowance

Contracting Party

A person firm or company domiciled within the Territorial Limits with whom the Insured has a direct contractual relationship

Debt Collection Service

The debt collection service nominated by the Insurer’s Representative

Due Date

The date monies owed to the Insured first become due and payable

Employee

Any person under a contract of service with the Insured

HMRC Investigation

Inland Revenue Investigations and VAT Disputes


SECTION 9 – LEGAL EXPENSES CONTINUED

Inland Revenue Investigation

a) Business Self Assessment Full Enquiry

The investigation which takes place when an officer of Her Majesty’s Revenue & Customs (HMRC) makes a request to examine all of the Insured’s business books and records and issues a formal notice under S9A or S12AC of the Taxes Management Act 1970 or under Paragraph 24(1) Schedule 18 Finance Act 1998

b) Employer Compliance Dispute

The enquiries which take place following an expression of dissatisfaction with the Insured’s PAYE and/or NIC affairs following an employer compliance visit by HMRC or following an expression of dissatisfaction with the Insured’s P11Ds or P9Ds

c) Business Self Assessment Aspect Enquiry

The enquiry which takes place when an officer of HMRC issues a formal notice under Paragraph 24(1) Schedule 18 Finance Act 1998 or S9A or S12AC of the Taxes Management Act 1970 in order to make an Aspect Enquiry into only certain boxes on the Insured’s Self Assessment Return

Insurer’s Representative

Arc Legal Assistance Limited who administers and manages Section 9 – Legal Expenses – of the Policy on behalf of the Insurer

Jury Service Allowance

The amount of money the Insured is liable to pay an Employee each day they attend on jury service less any recovery from the court

Legal Expenses

a) Fees

i. Any professional fees expenses and other disbursements reasonably incurred by the Appointed Representative with the consent of the Insurer’s Representative and

ii. any costs incurred by other parties insofar as the Insured is held liable in court or tribunal proceedings to pay such costs or becomes liable to pay such costs under a settlement made with another party with the consent of the Insurer’s Representative but excluding any costs which the Insured may be ordered to pay by a court of criminal jurisdiction

b) Witness Attendance Allowance

The amount of money the Insured is liable to pay an Employee each day they are required by the Appointed Representative to attend as a witness at a court or tribunal hearing. This indemnity is limited to £100 per day and a maximum of £1,000 for Any One Claim

Professional Expenses

Any fees expenses and other disbursements reasonably incurred by the Appointed Representative with the consent of the Insurer’s Representative but excluding any tax or VAT additional tax or VAT interest or penalties demanded assessed or required by the relevant authorities or other penalties imposed by a court of criminal jurisdiction

Proportional

An estimate of the Legal Expenses and Professional Expenses to deal with the Insured’s claim must not be more than the amount of money at stake. If the estimate exceeds the amount in dispute then the Insurer’s Representative may decline or discontinue support for the Insured’s case

Prospects of Success

In the professional opinion of the Appointed Representative there must be more than a 50% chance of winning the case and achieving a positive outcome. A positive outcome includes but is not limited to recovering the amount of money at stake enforcing a judgment or achieving an outcome which best serves the Insured’s interests



Statutory Licence

A licence or certificate of registration issued under statute statutory instrument or by a Government or local authority to the Insured provided that such licence or certificate is necessary to engage in the Business of the Insured and the licence or certificate has been declared to the Insurer

VAT Disputes

The enquiries which take place following a written decision assessment or statement of alleged arrears made by HMRC into the Insured’s Value Added Tax Return and/or any related Value Added Tax default surcharges and misdeclaration penalties

Sub-Section A – Contract DisputesThe Insurer agrees to indemnify the Insured against Legal Expenses incurred in the pursuit or defence of any dispute or legal proceedings made by or brought against the Insured in a contractual dispute with a Contracting Party over a contract for the sale of goods or a contract for the hire of goods or a contract for the supply of a service within the meaning laid down in the Sale of Goods Act 1979 and/or the Supply of Goods and Services Act 1982

Provided that

a) Legal Expenses incurred in the pursuit of any dispute or legal proceedings shall be limited to 75% of the amount in dispute

b) the amount in dispute exceeds £1,000

c) the Insured will only be indemnified by this sub section for contract disputes arising from construction work carried out by the Contracting Party for the repair and renovation of the Buildings insured under Section 1 - Material Damage owned by the Insured and used in connection with the Business

d) where the dispute relates to monies owed to the Insured and such liability is not contested the Insured refers the debt to the Debt Collection Service within 30 days of the Due Date and agrees use of the service shall be paid for by the Insured and not indemnified by the Insurer. If the Debt Collection Service exhausts its normal recovery procedure and recommends to the Insurer’s Representative that legal proceedings are necessary the Insured shall immediately notify a Claim under this Sub-Section of Cover

Exclusions

The Insurer shall not be liable to indemnify the Insured in respect of Claims arising out of or in connection with

a) contracts that provide or arrange credit insurance securities or guarantees

b) contracts where the liability or right of recovery of the Insured is incurred through their agent or by assignment

c) franchise contracts

d) contracts governed by or alleged to be governed by the Consumer Credit Act 1974

e) contracts of employment

f) any tenancy or licence to use the property

g) construction contracts unless the construction work is carried out by a Contracting Party for the repair and renovation of the Buildings insured under Section 1 - Material Damage owned by the Insured and used in connection with the Business

Sub-Section B – Criminal ProsecutionThe Insurer agrees to indemnify the Insured against Legal Expenses incurred in

a) defending a prosecution against the Insured in a court of criminal jurisdiction

b) an appeal by the Insured against the service of an Improvement or Prohibition Notice under the Health & Safety at Work Act 1974 or the Food Safety Act 1990



Exclusions

The Insurer shall not be liable to indemnify the Insured in respect of Claims arising out of or in connection with

a) any prosecution relating to or arising from investigations by HMRC

b) any prosecution for offences against the person including offences of a sexual nature

c) any prosecution for criminal damage

d) any prosecution alleging dishonesty

e) any prosecution for non-endorsable road traffic offences except tachograph prosecutions and weight prosecutions

f) an allegation of speeding or driving whilst under the influence of alcohol and/or drugs

g) failure to insure a motor vehicle as required by law

Sub-Section C – Employment DisputesThe Insurer agrees to indemnify the Insured against Legal Expenses and Awards of Compensation incurred by the Insured in defending legal proceedings brought against the Insured by an Employee ex-Employee or prospective Employee in respect of their contract of employment with the Insured or a breach of employment-related legislation

In order to be covered by this Sub-Section the Insured must have sought and followed all the advice from the LV= Legal Line as to the procedure to be adopted and has received specific authorisation from the LV= Legal Line

a) prior to carrying out any disciplinary procedure or action or suspension of an Employee

b) prior to dismissal of an Employee

c) prior to instituting a redundancy programme and prior to making an Employee redundant

d) prior to notifying an Employee of their intended retirement date or retiring an Employee

e) upon notification formally or informally of a grievance from an Employee or ex-Employee

f) upon notification formally or informally of a complaint relating to discrimination victimisation or harassment because of age disability gender reassignment marriage/civil partnership pregnancy/maternity race religion or belief sex or sexual orientation

g) prior to any adverse variation or any attempt to adversely vary the terms and conditions of employment (including altering the hours or time or place worked or demotion or deduction from or reduction in an Employee’s remuneration)

h) immediately an Employee walks out with or without written notice

i) upon receipt of an appeal from an Employee or ex-Employee against a decision taken as a result of a disciplinary or grievance procedure or retirement procedure or a decision to dismiss

Sub-Section D – Tax ProtectionSub-Section D1 – Inland Revenue Investigations

The Insurer agrees to indemnify the Insured against Professional Expenses incurred in respect of representation of the Insured in an Inland Revenue Investigation including representation at a First-tier Tribunal and at an appeal against a decision following such a Tribunal provided that there is a reasonable prospect of reducing the liabilities alleged by HMRC

Sub-Section D2 – VAT Disputes

The Insurer agrees to indemnify the Insured against Professional Expenses incurred in representation of the Insured in a VAT Dispute in respect of

a) the local review procedure in order to reach agreement with HMRC

b) a First-tier Tribunal Upper Tribunal or VAT Tribunal including an appeal

provided that there is a reasonable prospect of reducing the liabilities alleged by HMRC



Exclusions

The Insurer shall not be liable to indemnify the Insured in respect of

a) technical or routine treatment of matters not connected with nor arising out of an expression of dissatisfaction with the Insured’s affairs

b) the defence of any criminal prosecution

c) taxation proceedings which arise out of negligent mis-statements or omissions made by or on behalf of the Insured in respect of returns or accounts or where there has been a lack of reasonable care in the keeping of business books and records

d) any HMRC Investigation which results solely from investigation of earlier accounts or records

e) any Claim where the tax return is submitted outside the statutory time limits and/or in a penalty position or where the Insured has not notified chargeability to tax within the statutory time limits

f) the preparation and/or correction of Self Assessment Returns accounts Income Tax Returns P11Ds P35s VAT returns or any other statutory returns

g) any enquiry under Public Notice 160 or Section 60 of the VAT Act 1994 or matters handled by HM Revenue and Customs Specialist Investigations Civil Investigations of Fraud and Criminal Investigations Sections. Also Code of Practice 8 and 9 cases

h) an enquiry into the validity of a claim for Working Tax Credit or a dispute concerning the payment of the Working Tax Credit by an employer

i) any dispute in connection with the payment of the National Minimum Wage

j) a dispute or enquiry in respect of IR35 legislation

k) any Claim made where a return submitted at the final filing date contains provisional figures in respect of all of the trading income and expenditure items

l) an investigation arising out of a voluntary disclosure made to HMRC in respect of omitted tax NIC or VAT liabilities which become due as a result of the Insured’s deliberate act or following an HMRC amnesty where the Insured has made an incorrect return to HMRC

m) an investigation by HMRC into a tax planning arrangement where the Anti Avoidance Intelligence Unit of HMRC has allocated a number for inclusion on the relevant Self Assessment Return or any matter relating to bespoke tax planning

Sub-Section E – Property DisputesThe Insurer agrees to indemnify the Insured against Legal Expenses incurred in any dispute or legal proceedings made by or brought against the Insured

a) over the physical possession of the Property provided that where appropriate all statutory and contractual notices have been correctly served by the Insured

b) over the terms of a tenancy agreement between the Insured and a Contracting Party relating to the use or maintenance of the Property including dilapidations

c) over the actual or alleged negligence damage or nuisance caused to the Property by anyone other than the tenant

Provided that the Insured will suffer financial loss if the Insured fails to pursue or defend the dispute or legal proceedings

Exclusions

The Insurer shall not be liable to indemnify the Insured in respect of any Claim arising out of or in connection with

a) the payment or non-payment or review of any tax rent or service charge

b) a dispute relating to planning or building regulations or decisions or compulsory purchase orders or any actual planned or proposed works by or under the order of any government or public or local authority

c) any dispute arising from the negotiation review or renewal of a tenancy agreement or the subsequent purchase of the Property whether or not such purchase is completed



d) any dispute where the Insured has failed to maintain in full force and effect during the tenancy agreement buildings insurance covering the standard range of perils if the Insured was contractually obligated to have such insurance in force

e) a dispute over subsidence or heave howsoever caused

f) a contract dispute other than where the contract is a tenancy agreement with a Contracting Party

Sub-Section F – Data ProtectionThe Insurer agrees to indemnify the Insured against Legal Expenses incurred in defending any dispute or legal proceedings brought against the Insured arising under the Data Protection Act 1998 including an appeal by the Insured against a refusal of an application for registration or alteration of registered particulars or an appeal against an Enforcement Deregistration or Transfer Prohibition Notice. The Insurer further agrees to indemnify the Insured against compensation awards which the Insured is ordered to pay under Section 13 of the Data Protection Act 1998 consequent upon the holding loss or unauthorised disclosure of data provided that any compensation award follows the unsuccessful defence of an action arising out of the Data Protection Act 1998 to which the Insurer’s Representative’s consent has been granted and has not been withdrawn

Sub-Section G – Statutory LicenceThe Insurer agrees to indemnify the Insured against Legal Expenses incurred in an appeal by the Insured against the suspension revocation imposed alteration of or refusal to renew a Statutory Licence

Exclusions

The Insurer shall not be liable to indemnify the Insured in respect of any Claim arising out of or in connection with

a) any disciplinary or internal procedures conducted by authorities charged with the regulation of the Insured in the performance of their Business or for any appeal following such procedures

b) an alteration or refusal to renew a Statutory Licence which is imposed by Act of Parliament

c) any costs incurred to comply with a notice or order

d) driving licences

Sub-Section H – Personal InjuryThe Insurer agrees to indemnify the Insured against Legal Expenses incurred in the pursuit of any dispute or legal proceeding for damages for Injury to the Insured caused by the actual or alleged act or omission of a third party

Sub-Section I – Wrongful Arrest DefenceThe Insurer agrees to indemnify the Insured against Legal Expenses incurred in the defence of civil legal proceedings against the Insured in respect of allegations of wrongful arrest or malicious prosecution

Exclusion

The Insurer shall not be liable to indemnify the Insured in respect of any Claim arising out of or in connection with allegations made by or against or on behalf of an Employee or former Employee or any other person working for the Insured whether or not an Employee

Sub-Section J – Jury Service AllowanceThe Insurer agrees to indemnify the Insured against Jury Service Allowance with such indemnity being limited to £100 per day and a maximum of £1,000 for Any One Claim

Sub-Section K – Pension Trustee DefenceThe Insurer agrees to indemnify the Insured against Legal Expenses incurred in defending civil proceedings against the Insured in the Insured’s capacity as a trustee of a pension fund set up for the benefit of the Insured’s Employees

Exclusions to Section 9The Insurer shall not be liable to indemnify the Insured in respect of

1) the defence of the Insured in civil legal proceedings for

a) injury or disease including psychiatric injury and/or stress



b) loss destruction or damage of or to property

c) alleged breach of any professional duty

d) any tortious liability (other than as specified in Sub-Sections E Property Disputes and K Pension Trustee Defence)

2) any dispute legal proceedings or HMRC Investigation made brought or commenced outside the Territorial Limits

3) Legal Expenses or Professional Expenses incurred without the prior written consent of the Insurer’s Representative or in excess of the Insurer’s Representative’s consent

4) Awards of Compensation where the Insurer’s Representative’s consent to incur Legal Expenses has not been granted or has been withdrawn

5) any Claim relating to or arising from any cause event or circumstance occurring prior to or existing at inception of the Policy and which has or which the Insured knew or ought reasonably to have known may give rise to a dispute legal proceedings or HMRC Investigation or Claim for Jury Service Allowance by or against the Insured

6) fines or other penalties imposed by a court or tribunal

7) any dispute legal proceedings or HMRC Investigation in respect of which the Insured is or but for the existence of the Policy would be entitled to indemnity under any insurance policy whether a legal expenses insurance or not or under a legal aid certificate or representation order

8) any Claim arising from the Insureds intentional wrongdoing or an act or omission with negligent disregard as to its consequences

9) any dispute or legal proceedings with Government or Local Authority departments concerning the imposition of statutory charges

10) disputes or legal proceedings between Insureds as specified in the Schedule or any endorsement thereto or with any parent company or subsidiary company or associated company or partner

11) any dispute between the Insured and the Insurer the Insurer’s Representative the Appointed Representative or their insurance broker

12) any dispute or legal proceedings arising out of breach or alleged breach of confidentiality or passing off whether related to intellectual property or not or the use or alleged use of any intellectual property

13) any dispute or legal proceedings arising out of or in connection with actual or alleged defamation or malicious falsehood

14) any Legal Expenses or Professional Expenses incurred in respect of or in connection with a judicial review

15) appeals arising out of legal proceedings or HMRC Investigations to which the Insurer’s Representative’s consent has not been granted

16) any Legal Expenses or Professional Expenses which the Insured should or would have had to incur irrespective of any dispute or legal proceeding

Legal Expenses Claims Conditions1) Notification of Claims

In order to be covered by this Section the Insured must during the Period of Insurance immediately notify the Insurer’s appointed representative Lyons Davidson Solicitors in writing if the Insured is aware of any cause event or circumstance which has given or may give rise to a Claim dispute legal proceedings or HMRC Investigation involving the Insured

Where such notification has been given the Insurer agrees to treat any subsequent Claim in respect of the cause event or circumstance notified as though the Claim had been notified during the Period of Insurance

Lyons Davidson Solictiors can be contacted by email or phone Email [email protected] Telephone 0800 0321145



2) Insurer’s Representative’s Consent

The Insurer will only indemnify the Insured under this Section if the Insurer’s consent in writing is obtained before any Legal Expenses or Professional Expenses are incurred. This consent will be given by the Insurer’s Representative on behalf of the Insurer if the Insured can satisfy the Insurer’s Representative that

a) the Legal Expenses and Professional Expenses are Proportional and

b)

i. where the Insured is pursuing there are Prospects of Success of proving the other party’s legal liability and of recovering the damages claimed or other legal remedy sought

or

ii. where the Insured is defending there are Prospects of Success of defending the claim

or

iii. in respect of a criminal prosecution and where the Insured pleads guilty there are Prospects of Success of a significant mitigation of the Insured’s sentence or fine

If during the course of a Claim the Insured ceases to satisfy the Insurer’s Representative in respect of a) or b) above indemnity will be withdrawn in respect of Legal Expenses Professional Expenses or Awards of Compensation

The decision to grant consent or to withhold it will be taken on receipt of

A) a fully completed claim form

B) the information and documentation the Insurer’s Representative reasonably requests

C) a legal opinion from the Appointed Representative as to a) and b) above

D) any advice the Insurer’s Representative may deem it necessary to take

With the agreement of the Insured the Insurer’s Representative may provide assistance in settling disputes the costs of which will be covered under the Policy subject to the payment of the Excess within the Limits of Indemnity

The Insurer’s Representative at its discretion may require the Insured to obtain an opinion from Counsel at the Insured’s expense as to the merits of the subject matter of the Claim such opinion to have regard to the same issues that the Insurer’s Representative has in assessing the merits of any legal action. If based upon such opinion the Insurer’s Representative is satisfied in respect of a) and b) above the Legal Expenses and Professional Expenses incurred in obtaining that opinion will be paid by the Insurer within the Limits of Indemnity

In granting its consent the Insurer undertakes to provide indemnity to the Insured subject to the terms and conditions of the Policy and Schedule but such consent does not imply that all Legal Expenses Professional Expenses or Awards of Compensation will be paid. In particular Legal Expenses or Professional Expenses for matters that go beyond the immediate scope of the Claim shall be deemed by the Insurer to fall outside the indemnity provided by the Policy

The Insurer’s Representative reserves the right to limit its consent by time and/or financial amount of Legal Expenses or Professional Expenses and/or stage of proceedings to allow for a review of their continued consent

If after consent has been granted it is shown that the Claim has not been brought within the terms and conditions of the Policy and Schedule the Insurer’s Representative’s consent will be withdrawn and no indemnity shall be provided. The Insurer shall be entitled to recover any Legal Expenses Professional Expenses Awards of Compensation Jury Service Allowance or compensation under Sub-Section F Data Protection previously paid

If the Insured elects to proceed with the pursuit or defence of a dispute or legal proceedings to which the Insurer’s Representative’s consent has been refused through lack of reasonable prospects as required in b) i. and ii. above and if the Insured is successful in such pursuit or defence the Insurer will pay Legal Expenses or Professional Expenses incurred after such consent had been refused subject to the terms and conditions of the Policy

3) Instruction and Choice of Appointed Representative and Counsel

The Insurer’s Representative will choose an Appointed Representative to act on behalf of the Insured in any Claim under certain Sub-Sections as specified in the Schedule



In all other Sub-Sections where recourse is necessary to a lawyer and there are enquiries or legal proceedings the Insured is free to choose an Appointed Representative to act in the name of and on behalf of the Insured in any enquiry or legal proceedings. The name and address of the Appointed Representative the Insured proposes to instruct must be notified to the Insurer’s Representative in writing. The proposed Appointed Representative will enable the Insured to comply with the terms and conditions of the Policy and will be appointed to act for the Insured in line with the Insurer’s Representative’s standard conditions of appointment. Any Professional Expenses or Legal Expenses charged by the Insured’s proposed Appointed Representative in excess of those that would normally be incurred using the Insurer’s Representative’s standard scale of charges (available on request) will be the responsibility of the Insured

In all other Claims the Insurer’s Representative will choose the Appointed Representative subject to the Excess unless there is a conflict of interest between the Insured and the Insurer’s Representative when the Insured is free to choose an Appointed Representative to act in the name and on behalf of the Insured in any Claim to which the Insurer’s Representative has consented

The Insured must not without the written consent of the Insurer’s Representative enter into any agreement with the Appointed Representative as to the basis of calculation of Legal Expenses or Professional Expenses.

In selecting the Appointed Representative the Insured shall have regard to its duty to minimise the cost of any Claim or legal proceedings. In all cases the Appointed Representative shall be appointed in the name of and on behalf of the Insured

If in the course of any Claim or legal proceedings the Appointed Representative wishes to instruct Counsel or an expert Counsel’s or the expert’s name and an explanation of the necessity for such instruction must be submitted to the Insurer’s Representative for consent to the proposed instruction which will not be unreasonably withheld

A dispute arising from the Insureds choice of Appointed Representative may be referred to arbitration

4) Disclosure

In order for the Insurer to indemnify the Insured under this Section the Insured must

a) give the Appointed Representative and the Insurer’s Representative all necessary help and information including a complete and truthful account of the facts of the case and all relevant documentary or other evidence in the Insured’s possession. The Insured must provide obtain or execute all documents as necessary and attend meetings or conferences as requested

b) instruct the Appointed Representative to provide the Insurer’s Representative any information document or advice in connection with any Claim and the subject matter of any Claim even if privileged. In addition the Insured must instruct the Appointed Representative to provide the Insurer’s Representative with regular updates on the progress of the subject matter of any Claim and inform the Insurer’s Representative immediately if and when any circumstance adversely impacts the factors taken into account in granting the Insurer’s Representative’s consent.

Indemnity may be withdrawn if the Insured fails to co-operate at all or within a reasonable time with the Insurer’s Representative’s or the Appointed Representative’s requests or if the Insured or Appointed Representative fails to provide the Insurer’s Representative with any information in connection with any Claim or the subject matter of any Claim

5) Payment of Legal Expenses Professional Expenses and Awards of Compensation

All bills for Legal Expenses or Professional Expenses which the Insured receives from the Appointed Representative should be forwarded to the Insurer’s Representative without delay. If the Insurer’s Representative so requires the Insured must ask the Appointed Representative to submit the bill of costs for assessment or certification by the appropriate Law Society court or tribunal

The Insured is responsible for payment of all Legal Expenses Professional Expenses Awards of Compensation or compensation under Sub-Section F Data Protection. The Insurer may settle these direct if requested by the Insured to do so

The payment of some Legal Expenses or Professional Expenses does not imply that all Legal Expenses Professional Expenses Awards of Compensation or compensation under Sub-Section F Data Protection will be paid



6) Offer of Settlement

In order for the Insurer to indemnify the Insured under this Section the Insured must inform the Insurer’s Representative in writing as soon as an offer to settle the subject matter of a Claim is received and/or the Insured proposes to make an offer of settlement. In any settlement the Insured must have regard to Legal Expenses Professional Expenses or Awards of Compensation or compensation under Sub-Section F Data Protection incurred or likely to be incurred by the Insurer and the recovery thereof

No indemnity will be provided if the Insured enters into any agreement to settle without the prior written consent of the Insurer’s Representative (such consent not to be unreasonably withheld) and the Insurer shall be entitled to recover any Legal Expenses Professional Expenses Awards of Compensation or compensation under Sub-Section F Data Protection previously paid

If the Insured unreasonably rejects an offer of settlement which the Insurer’s Representative recommends acceptance of or makes an offer which the Insurer’s Representative does not agree no further indemnity shall be provided

The Insurer may at its absolute discretion decide to pay the Insured the amount of damages that the Insured is claiming or is being claimed against the Insured instead of indemnifying the Insured for Legal Expenses Professional Expenses Awards of Compensation or compensation under Sub-Section F Data Protection. Where the Insurer exercises this discretion the Insurer will cease to be liable for any further Legal Expenses Professional Expenses Awards of Compensation or compensation under Sub-Section F Data Protection

The Insurer may also require the Insured to make an offer to pay an Award of Compensation to an Employee or ex-Employee or prospective Employee provided the Insurer agrees to pay that Award of Compensation. If the Insured fails to make that offer the Insurer will cease to be liable for any further Legal Expenses or Awards of Compensation

7) Recovery of Costs

Whenever the Insured is awarded costs or under the terms of any settlement where costs are included those costs are to be repaid to the Insurer

The Insured and their Appointed Representative must make every effort to make a full recovery of costs. Where a settlement purports to be a global or a without costs settlement or where costs are awarded but not recovered the Insured agrees that a fair and reasonable proportion of that settlement will be deemed costs and due to the Insurer

Where such a settlement is paid in instalments all costs to the Insurer shall be paid first

8) Appeal Procedure

If following legal proceedings to which the Insurer’s Representative has consented the Insured wishes to appeal against the judgment or decision of a court or tribunal the grounds for such appeal must be submitted to the Insurer’s Representative through the Appointed Representative immediately or as soon as practicable so that the Insurer’s Representative may consider whether to consent to such further action. If an appeal is lodged against a judgment or decision of a court or tribunal made in favour of the Insured following legal proceedings to which the Insurer’s Representative has consented the Insured must notify the Insurer’s Representative immediately in order that cover shall continue.

The Insurer’s Representative will inform the Appointed Representative of its decision. If the Insurer’s Representative so requires it the Insured must co-operate in an appeal against the judgment or decision of a court or tribunal

9) Duty to Minimise

The Insured must take all reasonable precautions to avoid and prevent Claims HMRC Investigations legal proceedings and disputes. The Insured must use every endeavour and take all reasonable measures to minimise the cost and effect of any Claim



10) Insolvency or Liquidation of the Insured

If the Insured becomes insolvent or is placed in liquidation receivership administration or bankruptcy or enters into a voluntary arrangement or deed of arrangement or if any application is made to the court or meeting convened for any such purpose the Insurer has the right to immediately cease to provide indemnity for Legal Expenses Professional Expenses Awards of Compensation Jury Service Allowance or compensation under Sub-Section F Data Protection notwithstanding any previous consent the Insurer’s Representative may have granted

11) Value Added Tax

If the Insured is registered for VAT the Insurer will not pay the VAT element of any Legal Expenses or Professional Expenses

12) Arbitration

Any dispute between the parties as to the amounts to be paid under the Section may where both parties agree be referred to an arbitrator who will be either a solicitor or a barrister. If the parties cannot agree on their choice of arbitrator the Law Society may be asked to make a nomination. The arbitration will be binding and carried out under the Arbitration Act. The costs of the arbitration will be at the discretion of the arbitrator


SECTION 10 – TERRORISM


In consideration of the payment of the premium in respect of the Period of Insurance the insurance provided under Section 1 – Material Damage and Section 2 – Business Interruption is extended to include Damage in England Scotland and Wales (but this shall not include the territorial seas adjacent thereto as defined by the Territorial Sea Act 1987) occasioned by or happening through or in consequence of Terrorism and loss consequent on interruption to or interference with the Business (but only where such loss is insured under these Sections) resulting from such Damage

The Insurer’s liability in respect of all losses arising out of any one occurrence and in the aggregate in any one Period of Insurance shall not exceed the Limits as otherwise specified under these Sections as stated in the Schedule

Section DefinitionsNuclear Installation

Means 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 instrument being an installation designed or adapted for

a) the production or use of atomic energy

b) the carrying out of any process which 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

c) the storage processing or disposal of nuclear fuel or of bulk quantities of other radioactive matter being matter which has been produced or irradiated in the course of the production or use of nuclear fuel

Nuclear Reactor

Means 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

Period of Insurance

Means the period commencing from

a) the Effective Date of the cover provided by this Section as shown in the Schedule or

b) any subsequent renewal of the Policy and of this Section

Provided that any such Period of Insurance does not exceed twelve calendar months

Private Individual

Means any person other than a

a) company association or partnership

b) trustee or body of trustees where insurance is arranged under the terms of a trust

c) person who owns Residential Property for the purpose of a business as a sole trader

d) person who owns Residential Property of which in excess of 20% is commercially occupied

Where

a) i. the Residential Property is occupied by a trustee or a sole trader as a private residence

and

ii. the property is not a block of flats

each will be deemed to be a Private Individual in respect of that same property

b) two or more persons have arranged insurance on Residential Property in

i. their several names

and/or

ii. the name of the Insured includes the name of a bank building society or other financial institution for the purpose of noting their interest in the property insured


SECTION 10 – TERRORISM CONTINUED

such persons will be deemed to be a Private Individual in respect of that property

Residential Property

Means

a) private dwelling houses and flats

b) household goods and personal effects

ExclusionsThis Section does not cover loss or destruction of or damage caused

1) to Residential Property insured in the name of a Private Individual

2) to any property at a Nuclear Installation or Nuclear Reactor

3) by riot or civil commotion

Provided also that this Section is not subject to any of the General Exclusions of the Policy other than General Exclusions 1a) and 5

Conditions1) The Insurer will not indemnify the Insured unless and until

a) the Treasury issues a certificate certifying that any loss was caused by Terrorism or

b) in the event of the Treasury refusing to issue such a certificate a tribunal formed by agreement between the Insurer and Pool Reinsurance Company Limited decides that the cause of such loss was Terrorism

2) If in relation to any claim under this Section the Insured have failed to fulfil any of the following conditions the Insured will lose their right to indemnity or payment for that claim

a) the Insured must declare to the Insurer all property and/or premises owned by them or for which they are responsible including all such property and/or premises of subsidiary companies unless it is the practice of any subsidiary company to effect its own insurance

b) the Insured must purchase Terrorism insurance from a Pool Reinsurance Company Limited member company in respect of all such property and/or premises

3) In any action suit or proceedings where the Insurer alleges that any Damage or loss resulting from Damage is not covered by this Section the burden of proving that such Damage or loss is covered will be upon the Insured


SECTION 11 – ROAD RISKS


In the event of accident injury loss or damage occurring in the Territorial Limits during any Period of Insurance but excluding any Motor Vehicle whilst in or on

a) any Premises owned or occupied by the Insured

b) any other place at which the Insured is carrying on motor trade activities (other than a road or public highway within the meaning of the Road Traffic Acts)

the Insurer will provide insurance for the cover referred to as operative in the Schedule and described under this Section

Any word or expression to which a particular meaning has been attached in the Certificate of Motor Insurance issued hereunder shall also bear such meaning wherever it may appear in respect of this Section

For the purpose of the Certificate of Motor Insurance the term Social Domestic and Pleasure purposes shall include commuting to and from a permanent place of work

DefinitionsThe Policy Definitions apply to this Section and in addition

Certificate of Motor Insurance

Legal evidence of the Insured’s insurance

Comprehensive (shown as Comp)

Cover provided under all Sub-Sections under this Section unless otherwise stated in the Schedule

Keys

Any device used to open a lock including but not restricted to any electronic device key card or remote control transmitter

Territorial Limits

Great Britain Northern Ireland the Isle of Man the Channel Islands the Republic of Ireland Andorra Austria Belgium Bulgaria Croatia Cyprus the Czech Republic Denmark Estonia Finland France (including Monaco) Germany Gibraltar Greece Hungary Iceland Italy (including San Marino and the Vatican City) Latvia Lithuania Luxembourg Malta the Netherlands Norway Poland Portugal Romania Slovakia Slovenia Spain Sweden and Switzerland (including Liechtenstein)

Including travelling by sea or rail and the port or station therein including loading or unloading

Third Party Fire and Theft (Shown as TPF & T)

Cover provided under all Sub-Sections unless otherwise stated on the Schedule but under Sub-Section – 1 Accidental Damage is restricted to loss or damage caused by fire explosion or theft

Third Party Only (Shown as TPO)

Cover provided under all Sub-Sections unless otherwise stated on the Schedule but excluding Sub-Section – 1 Accidental Damage

Sub-Section 1 - Accidental DamageThe Insurer will indemnify the Insured

a) against damage to a Motor Vehicle and its accessories whilst thereon

b) in respect of the Insured’s Vehicles a maximum amount of £1,000 per person for the Insured’s or Employee’s personal effects whilst therein

Excess(es)

The Insurer shall not be liable for the Excess which shall apply in addition to any additional Excess or endorsed Excess applied to this Section


SECTION 11 – ROAD RISKS CONTINUED

Endorsed Excess

Any Excess which is applied by Endorsement and shown in the Schedule

Inexperienced Driver Excess

An additional Excess of £250 is applicable to persons who are over 21 but under 25 years of age or holding a provisional licence or who have not held for a period of 1 year a full licence

Young Driver Excess

An additional Excess of £350 is applicable to persons 21 years of age or under

Windscreen Excess

An Excess of £100 is applicable in respect of loss of or damage to the glass in the Motor Vehicle’s windscreen windows or for any scratching of the bodywork arising from the breakage of glass

This Excess will not apply when the glass is repaired rather than replaced

Extensions to Sub-Section 1

The insurance provided by this Sub-Section 1 extends to include the following

a) Contract Price

In respect of any Motor Vehicle sold but not delivered for which the Insured is responsible under the terms of a sale contract which following damage is cancelled due to the contract conditions wholly or to the extent of the damage the liability of the Insurer shall be based on the contract price

b) Lock Replacement (Motor Vehicles)

The cost of replacing locks or lock mechanisms central locking interfaces and any affected parts of the engine control unit alarm and or immobiliser and all Keys of any legitimate format necessary to maintain the security of Motor Vehicles following theft of such Keys for an amount not exceeding £50,000 for any one claim

c) Loss of Use (Customers’ Vehicles)

Costs or expenses incurred by any customer with the Insurer’s written consent in being deprived of the use of a vehicle following such vehicle’s damage and within the terms and conditions of this Section but only during a reasonable period necessary to allow for repair or replacement thereof

Provided that the maximum liability of the Insurer under this Extension shall not exceed £50,000 for any one claim

d) Motor Vehicles Held for Sale

If a new vehicle held for sale by the Insured is subject to damage to the extent that it necessitates a declaration of such damage to a prospective purchaser and a discount to effect a sale the Insurer will consider such discount as forming part of the claim provided that the Insurer has agreed the level of discount necessary to effect the sale and the total payment in respect of such discount will be limited to a maximum of £10,000 any one vehicle

e) New Vehicle Concession Insured’s Vehicles and Customers’ Motor Vehicles

If within one year of registration as new any vehicle insured for damage under this Section is

a) lost by theft and not recovered within 28 days of such theft being referred to the Insurer or

b) damaged to the extent that the cost of repairs will exceed 50% of the manufacturer’s recommended retail price plus taxes immediately prior to such damage and the claim is settled as a total loss

the Insurer will pay for the cost of purchasing a new replacement vehicle of the same make and model provided that

i. the Insured requests it

ii. such a replacement is available and

iii. the total payment will be limited to a maximum of £50,000 any one claim above the amount which would otherwise have been payable under this Section had this Extension not been incorporated



f) Vehicles with Sub-Contractors

Notwithstanding anything to the contrary in the Persons Entitled to Drive as defined by the Certificate of Motor Insurance Sub-Section 1 is extended in the event of a Motor Vehicle sustaining loss or damage whilst in the possession of a sub-contractor to the Insured for the purpose of work being carried out on such vehicle on behalf of the Insured and there being no other existing insurance covering the same loss or damage

The Insurer shall not be liable hereunder for loss or damage to such vehicle whilst in or on the business premises of any sub-contractor

Exclusions to Sub-Section 1


a) loss of use loss of market value following repair depreciation deterioration wear and tear mechanical electrical electronic or computer failures or breakdowns

b) damage to tyres by punctures cuts bursts or by application of brakes

c) loss of accessories of a motor cycle unless stolen with the motor cycle itself

d) loss of a Motor Vehicle resulting from deception by a purported purchaser or their agent

e) loss of a Motor Vehicle when left unattended at any time unless the ignition Key is removed and all doors windows and other openings have been closed and locked

f) vehicles which are goods carrying vehicles being used for hire or reward (vehicles used solely for breakdown purposes or used under a trade plate for the carriage of goods for demonstration purposes in accordance with the regulations applicable to trade licences are not deemed to be used for hire or reward)

Basis of Claim Settlement under Sub-Section 1

a) Customers’ Vehicles

The Insurer may at its option repair or replace Customers’ Vehicles or accessories or make a settlement in cash not exceeding the replacement value at the time of the damage

b) Insured’s Vehicles

If the Insured’s Vehicles are damaged the Insurer will at its discretion repair or replace the Insured’s Vehicles or make a cash settlement. The most the Insurer will pay is

i. the Trade Value of the Insured’s Vehicles at the time of the damage or

ii. the purchase price of the Insured’s Vehicles

whichever is the lesser amount

If any damaged part or accessory is unobtainable the Basis of Settlement shall be the manufacturer’s last list price

The Insured may authorise repairs if the estimated cost does not exceed £1,000 provided that the Insurer is notified and a detailed estimate is supplied immediately

If a Motor Vehicle is the subject of a hire purchase agreement any settlement in cash may be made to the legal owner whose receipt will constitute a discharge

The Insurer will pay the reasonable cost of removal of a Motor Vehicle to the nearest repairers after such damage and of delivery of a Motor Vehicle to the Insured’s address when repairs have been completed

No Claims Discount applying to Sub-Section 1

The renewal premium will be reduced in accordance with the current scale of No Claims Discount which applies at the time providing no claim has been made under this Sub-Section

Any payment made in respect of a claim arising under this Sub-Section where the only loss or damage sustained by the Motor Vehicle is breakage of glass in the windscreen or windows (or any scratching of bodywork resulting solely and directly from such breakage) will not be deemed to be a claim for the purpose of the application of the No Claims Discount



Sub-Section 2 – Liability to Third Partiesa) Indemnity to the Insured

The Insurer will indemnify the Insured in the event of an accident caused by or in connection with a Motor Vehicle against liability at law for damages in respect of

i. death of or bodily injury to any person or

ii. damage to property but the indemnity against liability for such damage including any indirect loss or damage is limited in respect of any one claim or series of claims arising out of one occurrence to the sum of £5,000,000

b) Indemnity to other persons

The Insurer will also cover in the terms of item a) of Sub-Section 2

i. any authorised driver as described in the Certificate of Motor Insurance driving on the Insured’s order or with his permission

ii. the personal representatives in the event of the death of the person indemnified

iii. any person using (but not driving) a Motor Vehicle with the permission of the Insured for social domestic and pleasure or other purposes provided such use is permitted by the terms of the Certificate of Motor Insurance

iv. the owner of a Motor Vehicle and

v. any passenger whilst travelling in or getting into or out of a Motor Vehicle

Provided that such persons observe and fulfil the terms of this Policy in so far as they can apply

c) Cross Liabilities

Where the Insured comprises more than one party the Insurer will treat each party as the Insured as if a separate Policy had been issued to each provided that nothing in this extension shall increase the liability of the Insurer beyond the amount for which the Insurer would have been liable had this extension not applied

d) Indemnity for Trailers

The Insurer will also cover in the terms of item a) of Sub-Section 2 the legal liability of the Insured for any trailer which is detached from any vehicle but only in so far as it is necessary to meet the requirements of any law relating to compulsory insurance in the territory concerned and provided that the insurance of the trailer is the responsibility of the Insured

e) Indemnity for Contents of Customers’ Vehicles

The Insurer will also cover in the terms of item a) of Sub-Section 2 the legal liability of the Insured for the contents of Customers’ Vehicles whilst in the Insured’s custody or control

In respect of any one claim or series of claims arising out of one occurrence the maximum sum the Insurer will pay is

i. £ 250,000 for a commercial load

ii. £ 5,000 for all other contents

f) Indemnity for Driving Other Vehicles

The Insurer will also cover in the terms of item a) of Sub-Section 2 the legal liability of the Insured or any partner or director of the Insured while driving any vehicle not belonging to or hired to the Insured or any partner or director of the Insured under a hire purchase agreement provided such vehicle is being used with the permission of the owner of the vehicle and within the Limitations as to Use specified in the current Certificate of Motor Insurance issued with the Policy

Cover hereunder will not provide indemnity for use to secure the release of any vehicle which has been seized by or on behalf of any government or public authority which was not the property of the Insured or in his custody or control at the time of seizure



g) Indemnity for Movement of Other Vehicles

The Insurer will also indemnify the Insured against legal liability to pay for death injury or damage (including damage to the vehicle being moved) arising out of the movement of vehicles not belonging to the Insured or in the custody or control of the Insured with or without the owner’s permission by the Insured or any partner director or employee of the Insured for the purpose of

i. parking

ii. loading or unloading and

iii. allowing free passage of

any Motor Vehicle

h) Court Attendance Compensation

The Insurer will indemnify the Insured for costs of attendance at court to help defend or act as a witness in connection with any claim which the Insured is entitled to indemnity under this Section and with the Insurer’s agreement up to £ 250 per day per person

Extension to Sub-Section 2

The insurance provided by Sub-Section 2 extends to include the following

Third Party Contingent Liability

Notwithstanding anything to the contrary in the Persons Entitled to Drive and Limitations as to Use as defined by the Certificate of Motor Insurance item a) of Sub-Section 2 is extended to indemnify the Insured in respect of

a) any vehicle belonging to and driven by any Employee on the Business of the Insured

b) a Motor Vehicle being driven by or in the charge of any sub-contractor of the Insured and

c) a Motor Vehicle loaned or hired to a customer by the Insured for purposes of the customer’s business or his social domestic and pleasure use but only whilst the customer’s own vehicle is in the Insured’s possession for repair or servicing pending re-delivery to the customer


The Insurer shall not be liable

a) in respect of death of or bodily injury to any person arising out of and in the course of such person’s employment by the person claiming to be indemnified except for any passenger who is being carried in or upon or entering or getting on to or alighting from the Motor Vehicle whilst such vehicle is on a Road as described in the Road Traffic Acts

Such passenger shall not be the driver or a person in charge of the Motor Vehicle for the purpose of driving

b) for damage to an Motor Vehicle or to any property belonging to or held in trust by or in the custody of the Insured or the person claiming to be indemnified or being conveyed by such vehicle

c) in connection with the loading or unloading of a Motor Vehicle beyond the limits of the carriageway by any person other than the driver or attendant of that vehicle

d) if there is any other insurance in force covering the same liability

e) whilst the Motor Vehicle is within the precincts of an airport or aerodrome to which aircraft have access or are housed

f) in respect of death of or bodily injury to any person or damage to property directly or indirectly caused by Pollution or Contamination unless such Pollution or Contamination is directly 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

This Exclusion shall not apply

i. in circumstances where this insurance is necessary to meet the requirements of any compulsory motor insurance legislation operative within the Territorial Limits

ii. where loss damage or liability arises from Pollution or Contamination as a result of any load seeping from a Motor Vehicle or any load spilling from or shifting in a Motor Vehicle



g) in respect of loss of whatsoever nature or any costs or expense whatsoever directly or indirectly caused by or contributed to by or arising from Terrorism except so far as is necessary to meet the requirements of the Road Traffic Acts

h) vehicles which are goods carrying vehicles being used for hire or reward (vehicles used solely for breakdown purposes or used under a trade plate for the carriage of goods for demonstration purposes in accordance with the regulations applicable to trade licences are not deemed to be used for hire or reward)

Sub-Section 3 – Legal CostsThe Insurer will also pay any legal costs incurred with its written consent in respect of any event which is being dealt with as a claim under Sub-Section 2 - Liability to Third Parties

This includes the cost of representation at any Coroner’s Court or Fatal Accident Inquiry and of defending any proceedings arising from death or in a Court of Summary Jurisdiction

If the Insurer elects to pay a limit of indemnity the costs payable under Sub-Section 3 shall be those incurred by the Insurer up to the date from which they notify the Insured of such election

Sub-Section 4 – Emergency TreatmentThe Insurer will pay for emergency treatment as required by the Road Traffic Acts arising out of the use of a Motor Vehicle

Sub-Section 5 – Foreign UseIn addition to providing cover within the Territorial Limits this policy in compliance with EU Directives also provides the necessary cover to meet the laws on compulsory insurance of motor vehicles in

a) any other country which is a member of the European Union and

b) any country which the Commission of the European Communities is satisfied has made arrangements to meet the requirements of Article 7 (2) of EC Directive 72/166/EC relating to civil liabilities arising out of the use of motor vehicles

The level of cover provided will be the minimum required to comply with the laws on the compulsory insurance of motor vehicles of the country in which the accident occurs

Where the accident occurs in another EU Member State if the minimum cover required by the laws of Great Britain is wider than that of such EU Member State the level of cover provided will be that applicable in Great Britain

This Sub-Section shall also apply to other foreign use or in any other country outside the Continent of Europe provided notice of an intended foreign visit has been given but subject to payment of any additional premium that may be required and to such terms and conditions that the Insurer may require

Sub-Section 6 – Unauthorised UseThe insurance provided under Section 11 – Road Risks is extended to indemnify the Insured in the event that any person other than an authorised driver uses a Motor Vehicle without authority provided that the Insured has not been party to such unauthorised use

Sub-Section 7 – Car SharingIn respect of Sub-Section 1 – Accidental Damage and Sub-Section 2 – Liability to Third Parties the receipt of financial contributions in respect of the carriage of passengers on a journey in a vehicle as part of a car-sharing arrangement for social or other similar purposes will not be deemed to constitute the carriage of passengers for hire or reward provided

a) passengers are not being carried in the course of a business carrying passengers

b) total contributions received for the journey concerned do not involve an element of profit

Conditions to Sub-Section 7

a) The Insured must take all reasonable precautions to

i. maintain the Insured’s Vehicles in an efficient and roadworthy condition and where applicable the Insured Vehicle must be covered by a valid Department of Transport Test (MOT) Certificate if required by law and

ii. safeguard it from loss or damage



b) The Insurer shall have full access at all reasonable times to examine the Insured’s Vehicles

c) The Insured and/or the person who incurred the liability shall repay to the Insurer any sum which it has paid solely because of the law of the country in which this Section operates and which it would not otherwise have paid

Similarly the Insured and/or the person who incurred the liability shall repay the Insurer any sum which it has paid solely because of any agreement with the Motor Insurer’s Bureau

Such rights of recovery will be pursued against the Insured and/or the person who incurred the liability

d) The Insured will arrange for details of all relevant vehicles to be provided in electronic format to the Motor Insurance Database website in order to comply with the relevant law applicable in Great Britain and Northern Ireland

Failure to disclose such registration numbers may invalidate your Policy or result in claims being rejected


This Sub-Section does not cover

a) any accident injury loss or damage whilst the Insured’s Vehicles are

i. being used other than in accordance with the Limitations as to Use described in the Certificate of Motor Insurance or is being driven by or for the purpose of being driven is in the charge of any person other than an authorised driver described in the Certificate of Motor Insurance

ii. being driven by or in the charge of the Insured unless they hold a licence to drive such vehicle or has held and is not disqualified for holding or obtaining such a licence

iii. being driven by or in the charge of the Insured who does not meet the terms and conditions of their driving licence as required by the DVLA/DVLNI rules and regulations and any relevant law

iv. being driven with the consent of the Insured or his representative by any person who to their knowledge 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 or

v. being driven in an unsafe or unroadworthy condition

b) any legal liability incurred as a result of an agreement or contract unless such liability would have attached in the absence of such agreement

c) any accident (except under Sub-Section 2) arising in consequence of

i. an earthquake or

ii. riot or civil commotion arising elsewhere than in Great Britain the Channel Islands or the Isle of Man

d) any accident injury loss or damage arising out of participation in racing of any description or being used in any contest competition rally or speed trial (other than treasure hunts)

e) the Insured’s Vehicles being used on any form of race track de-restricted toll road (including the Nurburgring) or off road activity

f) any proceedings brought or judgment obtained against the Insured or any person covered by this Sub-Section in any court outside the United Kingdom unless such proceedings are brought or judgment is obtained in the court of a foreign country arising out of the use of the Insured’s Vehicles in that foreign country and the Insurer has agreed to extend cover under this Sub-Section to cover such foreign use


GENERAL CLAIMS CONDITIONS

1) Action by the Insured (not applicable to Section 9 – Legal Expenses)

On the happening of any event or circumstance which could give rise to a claim by the Insured under the Policy or on receiving verbal or written notice of any claim the Insured shall

a) as soon as reasonably possible give notice to the Insurer

b) immediately notify the Police in respect of any Damage caused by thieves or malicious persons or in respect of theft by employees or theft by fraud trick or false pretence where covered and obtain a Crime Reference Number which must be advised to the Insurer as soon as reasonably possible

c) immediately forward to the Insurer any writ or summons issued against the Insured by a third party

d) take action to minimise the loss destruction or damage and to avoid interruption or interference with the Business and to prevent further loss destruction damage or injury

e) at their own expense supply full details of the claim in writing to the Insurer together with any evidence and information that may be reasonably required by the Insurer for the purpose of investigating or verifying the claim and if demanded a statutory declaration of the truth of the claim and any matter connected with it within

i. 7 days of Damage caused by riot civil commotion strikers locked out workers or persons taking part in labour disturbances or malicious persons

ii. 30 days of expiry of the Indemnity Period in respect of business Interruption claims

iii. 30 days of the event or circumstance in the case of any other claim or of a request from the Insurer

No theft or attempted theft claim under this Policy shall be considered unless notified to the Police in accordance with 1b) above and a Crime Reference Number obtained

No settlement admission of liability payment or promise of payment shall be made to a third party without the prior written consent of the Insurer

No claim under the Policy shall be payable unless the terms of this Condition have been complied with

2) Rights of the Insurer

The Insurer shall

a) be entitled at any stage to take over the defence or settlement of any claim made upon the Insured by any other party and to prosecute for its own benefit any claim for indemnity or compensation against any other persons in respect of any event insured by the Policy and at no cost to the Insurer the Insured shall give all assistance as may be reasonably required by the Insurer

b) have the right to enter the Premises where the Damage has occurred and to keep possession of any Property insured without thereby incurring any liability or diminishing any of the Insurer’s rights under the Policy and to deal with the salvage in a reasonable manner but the Insured shall not be entitled to abandon any Property to the Insurer

c) at its option indemnify the Insured by payment reinstatement replacement or repair in respect of any Property lost or damaged or part thereof. If the Insurer elects to reinstate or replace any Property they shall not be bound to reinstate or replace exactly or completely but only as circumstances permit and in reasonably sufficient manner and shall not in any case be bound to expend in respect of any one of the items insured more than the Sum Insured thereon

3) Conditions

Every Condition to which the Policy or any part thereof is or may be subject shall from the time the Condition attaches apply and continue to be in force during the whole currency of the Policy and non-compliance with any such Condition insofar as it increases the risk of loss destruction or damage shall be a bar to any claim in respect of such loss destruction or damage provided that whenever the Policy is renewed a claim in respect of loss destruction or damage occurring during the renewal period shall not be barred by reason of a Condition not having been complied with any time before the commencement of such period


GENERAL CLAIMS CONDITIONS CONTINUED

4) Contribution in respect of Sections 1, 2 and 3 (not applicable to Personal Accident (Assault))

If in the event of Damage or liability under the Policy there shall be in force any other insurance effected by or on behalf of the Insured providing cover against such a claim

a) the liability of the Insurer shall be limited to its rateable proportion of such a claim

b) but which is subject to any provision excluding it from ranking concurrently with the Policy either in whole or in part or from contributing rateably to the claim then the liability of the Insurer shall be limited to such proportion of the claim as the Sum Insured bears to the value of the Property

5) Arbitration (not applicable to Section 9 – Legal Expenses)

If any difference shall arise as to the amounts to be paid under the Policy such difference may at the Insurer’s option be referred to an arbitrator to be appointed by the parties in accordance with statutory provisions. Where any difference is by this Condition to be referred to arbitration the making of an award shall be a condition precedent to any right of action against the Insurer

Any other difference shall be subject to the exclusive jurisdiction of the courts of England and Wales

6) Claims Co-operation

The Insured will provide all help and assistance and co-operation required by the Insurer in connection with any claim


IMPORTANT INFORMATION

Please read this policy, the schedule (including any endorsements) and the certificate of motor insurance very carefully. Together with the information you gave us in the Proposal Form and/or Statement of Fact, and the declarations that you have made, they form the contract of insurance. You should pay particular attention to the general exclusions, the general conditions and any endorsements which apply.

Please tell your insurance adviser immediately if you have any questions, the cover does not meet your needs, or any part of your insurance documentation is incorrect.

How we use your personal informationThis information explains how we may use your details and tells you about the systems we use that allow us to detect and prevent fraudulent applications and claims. The savings that we make help us to keep premiums down.

The way in which we may use your personal data is controlled by the requirements of the Data Protection Act 1998. Highway Insurance Company Limited is registered for the purpose of processing personal data.

Information provided to us may be held, whether or not you purchase a policy, on computer, paper file or other format. We will hold this information for a reasonable time to ensure that a clear and complete history of insurance enquiries, applications, policy records and transactions is maintained.

Subject to payment of a fee, you can ask for a copy of the personal information we hold about you by writing to the CCA Department, LV=, County Gates, Bournemouth, BH1 2NF. For details of the Liverpool Victoria group of companies please refer to www.LV.com

The information (some of which may be sensitive data) may be used to process and administer your insurance by us and our agents (eg service providers both within and outside the European Economic area with which we have agreements). It may also be used or disclosed to regulators for the purposes of monitoring and enforcing our compliance with any regulation. Occasionally, your personal information may be disclosed to selected third parties who are assisting us in service improvement activities.

All phone calls may be monitored and recorded and used for fraud prevention and detection, quality control and training purposes.

If credit or debit card details are provided to us we may use this information to automatically renew your insurance policies. We will only do this where we have your permission.

If your details have been obtained through one of our affinity associations we may pass some of your information, including policy details and ongoing information, to that affinity organisation for membership, business analysis and other relevant purposes.

If you move to a new insurer we may confirm certain details about your insurance to them. We will only do this if we are sure it’s a genuine request.

If we receive a request for policy information by an individual other than the policy holder we will check that the policy holder has given permission to do this.

Sensitive personal data will not be used for marketing purposes.

Credit SearchWe may use information obtained from a number of sources including credit reference agencies. This helps us to confirm your identity, allows us to give you a quote and decide which payment options we can offer you, for example, paying monthly.

You will see a record of this search if you request a Credit Report. No other organisation who may conduct credit searches will be able to see it.

The search won’t affect your credit record or credit rating in any way.


IMPORTANT INFORMATION CONTINUED

Previous claims and incidentsYou must tell us about any claim or incident (such as fire, water damage, theft or an accident) whether or not you claimed for them. When you tell us about a claim or incident we will pass information about it to various databases. We may search these databases:

nn when you apply for insurance

nn if you have a claim

nn at renewal

We will do this to validate your claims history or that of any other person or property likely to be involved in the insurance or claim.

Fraud prevention and detectionWe’ll check your information against a range of registers and anti-fraud databases for completeness and accuracy. We may also share your information with law enforcement agencies, other organisations and public bodies.

If we find that false or inaccurate information has been given to us, or we suspect fraud, we’ll take appropriate action. If fraud is identified, details will be passed to fraud prevention agencies. Law enforcement agencies may access and use this information.

We and other organisations, including those from other countries, may also access and use this information to prevent fraud and money laundering, for example, when:

nn checking details on applications for credit and credit related or other facilities

nn managing credit and credit related accounts or facilities

nn recovering debt

nn checking details on proposals and claims for all types of insurance

nn checking details of job applicants and employees

Please contact us at GFC, LV=, County Gates, Bournemouth, BH1 2NF if you want to receive details of the registers and fraud prevention agencies.

Motor Insurance DatabaseWe will add your policy details to the Motor Insurance Database (‘MID’) which is managed by the Motor Insurers’ Bureau (‘MIB’). The MID and the data stored on it may be used by the Police, the DVLA, the DVANI, the Insurance Fraud Bureau and other bodies permitted by law for purposes not limited to but including:

nn electronic licensing

nn continuous insurance enforcement

nn law enforcement (prevention, detection, apprehension and/or prosecution of offenders)

nn the provision of government services and/or other services aimed at reducing uninsured driving

If you are involved in a road traffic accident (either in the UK or abroad), insurers and/or the MIB may search the MID to obtain relevant information.

Other persons (including their appointed representatives) pursuing a claim in respect of a road traffic accident (including foreign citizens) may also obtain relevant information held on the MID.

If we advise you that it is your responsibility to maintain your vehicle details on the Motor Insurance Database (MID) then you should update the MID immediately upon any changes additions or deletions to any licensed insured vehicle or trade plate.

If you do not maintain your vehicle schedule on the MID then you may be liable for a fine or you will be at risk of the Police seizing your vehicle


IMPORTANT INFORMATION CONTINUED

Telling you about other products and servicesUnless you have indicated otherwise, we and other carefully selected organisations may use your information to keep you informed of other products and services that may be of interest to you. You may be contacted by post, telephone or other appropriate means. If you would rather not receive such information please write to CCA Department, LV=, County Gates, Bournemouth, BH1 2NF.

How To Make A ComplaintIf you have a complaint about your policy or the service you have received, please contact the broker, intermediary or agent that arranged it. If they are unable to resolve your complaint you may refer your complaint to the Financial Ombudsman Service within six months of receiving their final response letter.

Should you be unhappy with service provided by Highway please contact us by phone on 0800 678 3159 (For Textphone please dial 18001 first. Opening hours Mon-Fri 9am-5pm). If you prefer to write, please address your letter to The Customer Care Department, Highway Insurance, Highway House, 171 Kings Road, Brentwood, Essex. CM14 4EJ Email: [email protected]. When contacting us please ensure you quote your policy or claim number as appropriate. A copy of our internal complaints procedure is available on request.

If we cannot resolve your complaint, you may refer your complaint to the Financial Ombudsman Service within six months of receiving our final response letter. The address is: Financial Ombudsman Service, Exchange Tower, Harbour Exchange Square, London E14 9SR. Telephone 0800 023 4567 or 0300 123 9 123 (from mobile or non BT lines)

Email [email protected].

Website: www.financial-ombudsman.org.uk

Making a complaint will not affect your right to take legal action.

Financial Services Compensation SchemeWhat happens if we are unable to meet our liabilities?

If we are unable to meet our liabilities to our policyholders, you may be able to claim compensation from the Financial Services Compensation Scheme (FSCS). There are different levels of compensation, depending on what kind of insurance you have:

Compulsory insurance such as third party motor insurance, is covered for 100% of the claim.

Non-compulsory insurance, such as home insurance, is covered for 90% of the claim.

You can get further information from the Financial Services Compensation Scheme, 10th Floor, Beaufort House, St Botolph Street, London EC3A 7QU Telephone 0800 678 1100 or 020 7741 4100 [email protected] www.fscs.org.uk

AuthorisationHighway Insurance Company Limited, registered in England and Wales number 3730662, is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority, register number 202972.

How to make a claimPlease contact in the first instance the Broker Intermediary or Agent who arranged the Policy.

Alternatively telephone the Claims Helpline on 0800 032 1168. Please quote your Policy Number

If you need to notify a possible Claim under Section 9 - Legal Expenses please immediately contact the Insurer’s appointed Representative Lyons Davidson Solicitors to obtain a claim form by email or telephone

Email [email protected]

Telephone 0800 0321145

LV= and Liverpool Victoria are registered trade marks of Liverpool Victoria Friendly Society Limited and LV= and LV= Liverpool Victoria are trading styles of the Liverpool Victoria Group of companies. Underwritten by Highway Insurance Company Limited, part of the Liverpool Victoria group of companies. Highway Insurance Company Limited, registered in England and Wales number 3730662 is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority, register number 202972. Registered address for both companies: County Gates, Bournemouth BH1 2NF. Tel: 01202 292333

21548419 06/15

LVbroker.co.uk