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Ship Repairers’ Liability Insurance

Policy Document.

Allianz Marine & Transit Underwriting Agency

As a specialist, our exclusive focus is on providing solutions to clients in the marine, transport and logistics industries.

allianzmarineandtransit.com.au

77173 POL400 AM&T Ship Repairer cov_D1.indd 1 7/04/15 2:05 PM

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Table of contentsPage

Optional covers 13

1. Detention 13

2. HotWorkextension 13

3. Otherwork 13

4. Pollutionliability 13

5. Subcontractors 13

6. Towingliability 13

7. Travellingworkmen 13

General exclusions 14

Propertyexclusions 14

Activityexclusions 15

Typesofclaim 15

Perilsexclusions 16

Failuretonotify 18

General conditions 19

ActionsofpartiesotherthanYou 19

Assignment 19

Crossliability 19

Governinglawandjurisdiction 19

GSTnotice 19

OtherInsurance/Non-contributionClause 19

Premiumadjustment 20

Prohibitedcoverorpayments 20

Reasonablecareandmaintenance 20

Inspections 20

Claims 21

Page

Introduction and important notices 2

Introduction 2

WhoIstheInsurer? 2

AboutAllianzMarine&TransitUnderwritingAgencyandAllianz 2

OurcontractwithYou 2

UnderstandingYourPolicyanditsimportanttermsandconditions 2

Summary 3

Applyingforcover 3

Premium 3

Howtomakeaclaim 4

CancellationrightsunderthePolicy 4

Contactforassistanceorconfirmationofcover 4

Renewalprocedure 4

Alterationtorisk 4

YourDutyofDisclosure 5

Privacynotice 5

GeneralInsuranceCodeofPractice 6

Disputeresolutionprocess–helpingYousolveanyproblems 6

Ifthisinsurancehasbeenissuedthroughaninsuranceintermediary 6

Words with special meaning 7

Cover 10

StandardTermsandConditions 10

Principal’sLiability 10

Supplementarypayments 10

DischargeofLiabilities/ClaimsControlClause 11

Deductible 11

Additional benefits 12

Berthoccupiersliability 12

Boatbuildingandreconstruction/extension 12

Chandlery/Incidentalmarinesales–ProductLiability 12

Employeepersonalproperty 12

HiredinequipmentusedinShipRepairingactivities 12

Inspectionsandvaluations–errorsandomissions 12

RectificationoffaultyworkmanshipconsequentuponDamage 12

77173 POL400 AM&T Ship Repairer txt_D1.indd 1 7/04/15 2:08 PM

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Our contract with YouWhereWeagreetoenterintoaPolicywithYouitisacontractofinsurancebetweenUsandYou(seethedefinitionof“You”fordetailsofwhoiscoveredbythisterm).

ThePolicyconsistsof:

• thisdocumentwhichsetsoutthestandardtermsofYourcoveranditslimitations;

• YourcurrentScheduleissuedbyUs.TheScheduleisaseparatedocument,whichshowstheinsurancedetailsrelevanttoYou.Itmayincludeadditionalterms,conditionsandexclusionsrelevanttoYouthatamendthestandardtermsofthisdocument.OnlythosesectionsshownascoveredinYourScheduleareinsured;and

• anyotherchangetothetermsofthePolicyotherwiseadvisedbyUsinwriting(suchasanendorsement).Thesewrittenchangesmayvaryormodifytheabovedocuments.

Theseareallimportantdocumentsandshouldbecarefullyreadtogetherandkeptinasafeplaceforfuturereference.

Wereservetherighttochangethetermsofthisinsurancewherepermittedtodosobylaw.

AnyneworreplacementScheduleWemaysendYou,detailingchangestoYourinsuranceorthePeriodofInsurance,willbecomethecurrentSchedule,whichYoushouldcarefullyreadandretain.

Understanding Your Policy and its important terms and conditionsToproperlyunderstandthesignificantfeatures,benefitsandrisksofthisinsuranceYouneedtocarefullyread:

• therestofthis“Introductionandimportantnotices”section–thissetsouthowYouapplyforcover,thebasisonwhichWeinsureYou,thedutyofdisclosureYouneedtocomplywith,Ourprivacyinformation,Ourdisputeresolutionproceduresandotherimportantinformation;

• the“Wordswithspecialmeaning”section–thissetsoutwhatWemeanbycertainwordsusedinthePolicy.Thesewordsbeginwithacapitalletterthroughoutthisdocument;

• theCoversection,includingthestandardcoversandOptionalcovers;

• the“Generalexclusions”section–thissetsoutthegeneralexclusionsandlimitsthatapplytocoverandbenefits;

• the“Generalconditions”and“Claims”sections–thesesetoutcertaingeneralrightsandobligationsthatYouandWehave;

Introduction and important noticesIntroductionWelcomeandthankYouforchoosingOurShipRepairers’LiabilityInsurance.

Thisisanimportantdocument.Youshouldreaditcarefullybeforemakingadecisiontopurchasethisinsurance.

ItwillhelpYouto:

• decidewhetherthisinsurancewillmeetYourneeds;and

• compareitwithotherproductsYoumaybeconsidering.

PleasenotethatanyrecommendationoropinioninthisdocumentisofageneralnatureonlyanddoesnottakeintoaccountYourobjectives,financialsituationorneeds.

ThePolicyconsistsofthisdocumentandanyendorsement,specification,attachmentormemorandaaffixed(orintendedtobeaffixed)toitandtheSchedule.Allofthemshouldbereadasiftheywereonedocument.

Who Is the insurer?TheinsurerisAllianzAustraliaInsuranceLimited(Allianz)AFSLicenceNo.234708,ABN15000122850of2MarketStreet,Sydney,NSW,2000.

InthePolicydocumentWerefertoAllianzAustraliaLimitedas“We”,“Us”,“Our”and“Allianz”.

About Allianz Marine &Transit Underwriting Agency and AllianzAllianzMarine&TransitUnderwritingAgencyPtyLimitedAFSRepresentativeNo.423910ABN98155554279ofLevel1,61LavenderStreet,MilsonsPointNSW2061isanAustralianorganisationthatspecialisesinprovidinginsuranceproductsforCargo,CommercialHullandMarineLiabilities.

AllianzMarine&TransitUnderwritingAgencyhavebeengivena“binding”authoritybyAllianztoissue,varyanddisposeofthisinsuranceandsettleclaimsasagentsofAllianzasiftheywereAllianztheinsurer.

AllianzisoneofAustralia’slargestgeneralinsurers.Weutiliseyearsoflocalexpertise,combinedwithglobalexperiencetoofferawiderangeofproductsandservicestoOurcustomers.AsamemberoftheworldwideAllianzGroup,WearecommittedtocontinuousimprovementofOurproductsandservicesandstrivetoachievethisthroughknowledgetransferwithintheAllianzGroup,dedicatedtechnicalresearchunits,sharingnewproductdevelopmentsandawiderangeofriskmanagementservicesglobally.


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Applying for coverWhenYouapplybycompletingOurapplicationprocessYouneedtoprovidetheinformationWerequiretodeterminewhethertoissueaPolicyandifso,onwhatterms,including(totheextenttheyareoptional):

• thecoversandbenefitsYouwant(includingthebusinessactivitiesYouwishtocover);

• thelimitsYouwant;

• thePeriodofInsuranceYouwant;

• theDeductiblethatYouagreetocontributeforcertainclaims;

• whetheranystandardtermsneedtobevaried(thismaybebywayofanendorsement).

WhereWeagreetoissueaPolicy,coverisprovidedonthebasis:

• thatYouhavepaidoragreedtopayUsthepremiumforthecoverprovided;

• oftheverbaland/orwritteninformationprovidedtoUsbyYouwhichmusthavegiveninaccordancewithYourDutyofDisclosure.

IfYoufailtocomplywithYourDutyofDisclosureorhavemadeamisrepresentationtoUs,WemaybeentitledtoreduceOurliabilityunderthePolicyinrespectofaclaimand/orWemaycancelthePolicy.IfYouhavetoldUssomethingwhichisfraudulent,WealsohavetheoptionofavoidingthePolicy(i.e.treatingitasifitneverexisted).

YourDutyofDisclosureandtheconsequencesofnondisclosure,areprovidedundertheheading‘YourDutyofDisclosure’.

PremiumYourpremium–thebasepremiumWechargeiscalculatedbasedonanumberoffactorssuchas:

• thecoverandbenefitsprovidedincludingtheLimitofIndemnity;

• theservicesYouprovide,YourpastlosshistoryandthetotalgrossreceiptsgeneratedbyYourbusiness;

• Ourobligationtopayrelevantgovernmenttaxesandcharges.Forexample,WeincludeanamountthatcoversanystampdutyandGSTpayableinrelationtothePolicy.

WhenYouapplyforthisinsurance,Youwillbeadvisedofthetotalpremiumamountpayable,whenitneedstobepaidandhowitcanbepaid.ThisamountwillbesetoutintheSchedule,whichwillbesenttoYouaftertheentryintothePolicy.IfYoufailtopayWemayreduceanyclaimpaymentbytheamountofpremiumowingand/orcancelthePolicy.

• allofthedocumentsthatmakeupthePolicy,includingtheScheduleandanyendorsementsorotherwrittenchangestothecoverWeissueYouwith–thesecontainspecificdetailsrelevanttoYouandcanaffectthecover.

HeadingsareprovidedforreferenceonlyanddonotformpartofYourPolicyforinterpretationpurposes.

WhenYouenterintothePolicyYouconfirmandwarrantthatYouhavereadorwillreadthePolicydocumentswhenprovidedtoYou.

SummaryPleasenotethatthisisalimitedsummaryonlyanddoesnotformpartofthetermsofthePolicy.Thecoverissubjecttoterms,conditions,exclusionsandlimitationsandanyendorsementsapplyingtothePolicythatarenotlistedinthesummary.YouneedtoreadthePolicy(i.e.thisdocumentandanyendorsement,specification,attachmentormemorandaaffixed(orintendedtobeaffixed)toitandtheSchedule)toproperlyunderstandthecoverprovided.

1. Cover summary

WewillcoverYouduringthePeriodofInsuranceshownontheScheduleforamountsthatYouarelegallyliabletopayasCompensationforDamagetoWatercraftinYourphysicalorlegalcontroland/orcertainPersonalInjurywhichoccursduringthePeriodofInsuranceandinconnectionwithYourShipRepairBusiness(asdefined).

WeonlycoverthosepartiesshownintheScheduleunlessotherwisestatedinthePolicyasbeingapersonorentityentitledtocover.

ThemaximumamountWewillpayunderthePolicyforanyoneOccurrenceandintheaggregateforallOccurrenceswillnotexceedtheLimitofIndemnityshownontheSchedule.

2. No Workers Compensation cover

ThisPolicydoesnotprovidecoverforanyliabilityunderWorkersCompensationLaw.Suchcoveriscompulsoryforemployers(exceptexemptemployers)andYoushouldarrangeseparateinsurance.

3. Your obligation to comply with the Policy terms and conditions

YouarerequiredtocomplywiththetermsandconditionsofthePolicy.PleaserememberthatifYoudonotcomplywithanytermorcondition,Wemay(totheextentpermittedbylaw)declineorreduceanyclaimpaymentand/orcancelYourPolicy.

IfmorethanonepersonisinsuredunderthePolicy,afailureorwrongfulactionbyoneofthosepersonsmayadverselyaffecttherightsofanyotherpersoninsuredunderthePolicy.


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How to make a claimIfYouneedtomakeaclaimunderthePolicy,pleaserefertotheClaimsSection.

Cancellation rights under the Policya) YouorYourbrokeronYourbehalfmaycancelYour

PolicyatanytimebynotifyingUsinwriting.

b) WehavetherighttocancelYourPolicywherepermittedbylaw.

1. Where the Insurance Contracts Act 1984 applies

TheInsuranceContractsAct1984permitsUstocancelpoliciesinanumberofsituations,includingbutnotlimitedto:

(i) whereYoufailedtocomplywithYourdutyofdisclosure;or

(ii) whereYouhavemadeamisrepresentationtoUsduringnegotiationspriortotheissueofYourPolicy;or

(iii)whereYoufailedtocomplywithaprovisionofYourPolicy,includingthetermrelatingtopaymentofpremium;or

(iv)whereYoumadeafraudulentclaimunderYourPolicyorundersomeothercontractofinsurancethatprovidescoverduringthesameperiodoftimethatYourPolicycoversYou.

2. Where the Marine Insurance Act 1909 applies

WemaycancelthisPolicyintheeventofnon-paymentofthePremiumorforanyotherreasonavailableatlawbygiving30daysnoticeofcancellation.

3. Cancellation notice

IfWedecidetocancelYourPolicy,WewillgivenoticetoYouorYouragentinwriting.Suchcancellationwillbeeffectivefrom4pmonthethirdbusinessdayafterthedaythenoticeisgiventoYouorYouragent,unlessitspecifiesalaterdate.

Note:ApostednoticeisdeemedgiventoYouatthetimeitwouldhavebeendeliveredintheordinarycourseofthepostalservice.

4. Returns for cancellation

IfYouorWecancelYourPolicyWemaydeductfromtherefundamount:

(i) aprorataproportionofthepremiumfortimeonrisk;

(ii) 10%ofthepremiumremainingafterapplyingClause(i)above,asadministrativecostsrelatedtotheacquisitionandterminationofYourPolicy;and

(iii)anygovernmenttaxesordutiesWecannotrecover.

YouwillnotreceivearefundofpremiumifYouhavealreadymadeaclaimorifcircumstanceshavearisenentitlingYoutomakeaclaim.

5. Premium funders

IfthepremiumhasbeenfundedbyapremiumfundingcompanywhichholdsalegalrightoverthePolicybyvirtueofanoticeofassignmentand/orirrevocablepowerofattorney,anyrefundcalculatedinaccordancewithClause4abovewillbemadetothepremiumfundingcompany.

Contact for assistance or confirmation of coverIfYouneedtoconfirmanyPolicytransactionorclarifyanyoftheinformationcontainedinthisdocumentorifYouhaveanyotherqueries,pleasecontactUsviathedetailsonthebackcover.

Renewal procedureBeforeYourPolicyexpires,WewilladviseYouwhetherWeintendtoofferrenewalandifsoonwhatterms.

ThisdocumentalsoappliesforanysubsequentPeriodofInsurance(renewal),unlessWetellYouotherwise.

ItisimportantthatYoucheckthetermsofanyrenewalbeforerenewingtosatisfyYourselfthatthedetailsarecorrect.InparticularcheckthesuminsuredamountstoensurethelevelsofcoverareappropriateforYouandtoensurethatYouareproperlycoveredintheeventofamajorclaim.

PleasenotethatYouneedtocomplywithYourDutyofDisclosurebeforeeachrenewal(seebelow).

Alteration to riskWhere the Insurance Contracts Act applies

ItisimportantthatYouadviseUsimmediatelyifYoubecomeawareofanychangestothefactsorcircumstanceswhichexistedwhenthisinsurancecommencedthatalterthenatureoftherisk(forexample,thenature,ortype,ofYourShipRepairBusiness),oranyothercircumstancesthataffectorinawaythatwouldincreasetheriskofloss,Damageorliability.WhenWereceivenotificationofachangeWemaydecidetoagreetothechangeandadjustthepremiumortermsofthePolicy,ortocancelthePolicy.

RegardlessofOurdecision,WewillinformYouinwritingand,whereWehaveagreedtothechanges,YoumustpayUsanyadditionalpremiumWemayrequire.

Where the Marine Insurance Act applies

YoumustgiveUsimmediatenoticeinwritingifthereisanymaterialchangeinthecircumstancesornatureoftheriskscoveredbythisPolicy,ornoclaimarisingafterthechangeshallbepayableunlessWehaveagreedtothechangeinwriting.


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Your Duty of DisclosureBeforeenteringintoacontractofgeneralinsurancewithUs,Youhaveaduty,undertheInsuranceContractsAct1984andtheMarineInsuranceAct1909(asapplicable)todisclosetoUseverymatterwhich:

• Youknow;or

• couldreasonablybeexpectedtoknow,

isrelevanttoOurdecisionwhetherandonwhattermsYourapplicationforinsuranceisacceptableandtocalculatehowmuchpremiumisrequiredforYourinsurance.

YouhavethesamedutytodisclosethosematterstoUsbeforeYourenew,extend,varyorreinstatethePolicy.

Thisdutyofdisclosureappliesuntilthecontractisenteredinto(orwhererelevantrenewed,extended,variedorreinstated(RelevantTime)).IfanythingchangesbetweenthetimeYouprovideanswersormakedisclosureandtheRelevantTime,YouneedtotellUs.

What You do not need to tell Us

YoudonotneedtotellUsaboutanymatterthat:

• diminishesOurrisk;

• isofcommonknowledge;

• Weknoworshouldknowasan;or

• WetellYouWedonotneedtoknow.

Who does the duty apply to?

ThedutyofdisclosureappliestoYouandeveryonethatisaninsuredunderthePolicy.IfYouprovideinformationforanotherinsured,itisasiftheyprovidedittoUs.

What happens if the duty of disclosure is not complied with?

Where the Insurance Contracts Act appliesIfthedutyofdisclosureisnotcompliedwithWemaycancelthePolicyand/orreducetheamountWepayifYoumakeaclaim.Iffraudisinvolved,WemaytreatthePolicyasifitneverexisted,andpaynothing.

Where the Marine Insurance Act 1909 appliesWheretheMarineInsuranceAct1909applies,ifYoufailtocomplywithYourdutyofdisclosure,Wemayavoidthecontractfromitsbeginning.

Privacy noticeAtAllianz,WegiveprioritytoprotectingtheprivacyofYourpersonalinformation.WedothisbyhandlingpersonalinformationinaresponsiblemannerandinaccordancewiththePrivacy Act 1988 (Cth).

How We collect Your personal information

WeusuallycollectYourpersonalinformationfromYouorYouragents.WemayalsocollectitfromOuragentsandserviceproviders;otherinsurersandinsurancereferencebureaus;peoplewhoareinvolvedinaclaimorassistUsininvestigatingorprocessingclaims,includingthirdpartiesclaimingunderYourPolicy,witnessesandmedicalpractitioners;thirdpartieswhomaybearranginginsurancecoverforagroupthatYouareapartof;lawenforcement,disputeresolution,statutoryandregulatorybodies;marketinglistsandindustrydatabases;andpubliclyavailablesources.

Why We collect Your personal information

WecollectYourpersonalinformationtoenableUstoprovideOurproductsandservices,includingtoprocessandsettleclaims;offerOurproductsandservicesandthoseofOurrelatedcompanies,brokers,intermediariesandbusinesspartnersthatmayinterestYou;andconductmarketorcustomerresearchtodeterminethoseproductsorservicesthatmaysuitYou.YoucanchoosenottoreceiveproductorserviceofferingsfromUs(includingproductorserviceofferingsfromUsonbehalfofOurbrokers,intermediariesand/orOurbusinesspartners)orOurrelatedcompaniesbycallingtheAllianzDirectMarketingPrivacyServiceLineon1300360529,EST8am-6pmMondaytoFriday,orgoingtoOurwebsite’sPrivacysectionatwww.allianz.com.au.

Who We disclose Your personal information to

WemaydiscloseYourpersonalinformationtootherswithwhomWehavebusinessarrangementsforthepurposeslistedintheparagraphaboveortoenablethemtooffertheirproductsandservicestoYou.Thesepartiesmayincludeinsurers,intermediaries,reinsurers,insurancereferencebureaus,relatedcompanies,Ouradvisers,personsinvolvedinclaims,externalclaimsdatacollectorsandverifiers,partiesthatWehaveaninsuranceschemeinplacewithunderwhichYoupurchasedYourPolicy(suchasafinancierormotorvehiclemanufacturerand/ordealer).Disclosuremayalsobemadetogovernment,lawenforcement,disputeresolution,statutoryorregulatorybodies,orasrequiredbylaw.

Disclosure overseas

YourpersonalinformationmaybedisclosedtoothercompaniesintheAllianzGroup,businesspartners,reinsurersandserviceprovidersthatmaybelocatedinAustraliaoroverseas.Thecountriestowhichthisinformationmaybedisclosedwillvaryfromtimetotime,butmayincludeCanada,Germany,NewZealand,UnitedStatesofAmericaandothercountriesinwhichtheAllianzGrouphasapresenceorengagessubcontractors.WeregularlyreviewthesecurityofOursystemsusedforsendingpersonalinformationoverseas.Anyinformationdisclosedmayonlybeusedforthepurposesofcollectiondetailedaboveandsystemadministration.


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Access to Your personal information and complaints

YoumayaskforaccesstothepersonalinformationWeholdaboutYouandseekcorrectionbycalling1300360529EST8am-6pm,MondaytoFriday.OurPrivacyPolicycontainsdetailsabouthowYoumaymakeacomplaintaboutabreachoftheprivacyprinciplescontainedinthePrivacy Act 1988 (Cth)andhowWedealwithcomplaints.OurPrivacyPolicyisavailableatwww.allianz.com.au.

Telephone call recording

Wemayrecordincomingand/oroutgoingtelephonecallsfortrainingorverificationpurposes.WhereWehaverecordedatelephonecall,WecanprovideYouwithacopyatYourrequest,whereitisreasonabletodoso.

General Insurance Code of PracticeTheGeneralInsuranceCodeofPracticewasdevelopedbytheInsuranceCouncilofAustraliatofurtherraisestandardsofpracticeandserviceacrosstheinsuranceindustry.WekeenlysupportthestandardssetoutintheCode.YoucanobtainmoreinformationontheCodeofPracticeandhowitassistsYoubycontactingUs.Contactdetailsareprovidedonthebackcover.

Dispute resolution process – helping You solve any problemsWestrivetodothingstherightwayandkeepOurcustomershappy.Sometimesthough,complaintsordisputesdooccurandwhenthishappensOurobjectiveistoresolveanydisagreementasamicablyandasquicklyaspossible.

WebelievethebestwaytoachievethisistoprovideYouwithanopportunityforanunbiasedreviewoftheissue.

Here is what to do if a complaint or dispute arises

RegardlessofwhetherthecomplaintordisputeinvolvesOurstaff,anagent,lossadjuster,assessor,investigatorortheserviceWeprovide,simplycontactUson132664EST8am-6pm,MondaytoFriday,speaktooneofOurcallcentreoperatorsandprovidethemwiththedetailsoftheissueconcerningYou.Theywillattempttoresolvethecomplaintordispute;iftheyareunabletodosotheywilllogitandreferittotheappropriatebusinessunitforresolution.

WithinOurorganisationWehaveestablishedacomplaintsanddisputesresolutionprocess.Thisisafreeservice.Itisasystemdesignedtolog,track,escalateandmonitorcomplaintsreceivedfromclientsandcustomersaboutOurservicesandproducts.AstaffmemberinvolvedinthecomplaintsanddisputesresolutionprocesswillwritetoYouwithin15workingdaysadvisingtheoutcomeofthereviewandreasonsfortheirdecision.WedonotconsideracomplaintordisputetoberesolveduntilaproposedresolutionorsolutionhasbeencommunicatedtoYouandYouhaveacceptedtheresolutionorsolution.

If You are not satisfied with the outcome of this process

IfWeareunabletoresolvethecomplaintordispute,WewilladviseYouaboutanyexternaldisputeresolutionoptionsthatareavailableoradviseYoutoseekindependentlegaladvice.

If this insurance has been issued through an insurance intermediaryIfYourPolicyhasbeenissuedthroughOuragent,orabrokerwhoisactingunderanagencyarrangementsuchasabinderwithUs,thentheyareactingasOuragentandnotasYouragent.

IfYourPolicyhasbeenarrangedorissuedbyabroker,otherthanabrokeractingundersuchanagencyarrangementwithUs,thenthebrokerisactingasYouragent.

WherethisPolicyhasbeenarrangedthroughanintermediaryacommissionmaybepayablebyUstothemforarrangingtheinsurance.


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Words with special meaningAircraftmeansanyvessel,craftordevicemadeorintendedtoflyormoveinorthroughtheatmosphereorspace.

Business Premisesmeansthelandandbuildingsorpartsofbuildings,includingcarparks,yard,berthsandfacilitiesowned/occupiedbyYoumakingupthefacilitywhereYouperformYourShipRepairBusinessattheSituation(s)notedintheSchedule.

CompensationmeansmoneypayablebywayofDamagesbyreasonofajudgementorderedbyaCourtofcompetentjurisdiction,orbyreasonofanyawardofacompetentarbitraltribunal,orbyreasonofanysettlementofanyclaimnegotiatedwithOurpriorconsent.Compensationdoesnotincludeanypunitive,exemplary,aggravateddamagesandanyadditionaldamagesresultingfromthemultiplicationofcompensatorydamages.

Damage(d)meansphysicalloss,destructionorDamage.

EmployeesmeansanypersonemployedbyYouordeemedtobeemployedbyYouoronYourbehalfinanycapacitypursuanttoanylaw,butnotincludingSubcontractorsortheworkersofSubcontractors.

Employment Practicesmeansanywrongfulorunfairdismissal,failuretopromote,negligentreassignment,negligentdisciplinaryaction,denialofnaturaljustice,refusaltoemploy,demotion,negligentevaluation,harassment,invasionofprivacy,defamation,misleadingrepresentationoradvertising,sexualharassmentordiscriminationinrespectofemployment,orprospectiveemployment,byYou.

DeductiblemeanseithertheamountofmoneyspecifiedintheScheduleorPolicythatYoumustcontributeasthefirstpaymentforeachclaimforwhichnopaymentwillbemadebyUswhereapplicable.AnyseparatedeductiblesforspecificcoverslistedintheSchedulewillapplycumulatively.Adeductiblemaybeexpressedaseitheramonetaryamountor,insomeinstances,asaperiodoftime.

Fungus/Fungi meansanyplantsororganismsbelongingtothemajorgroupFungi,lackingchlorophyllandincludingMoulds,rusts,mildews,smutsandmushrooms.

Gross Earnings meansthetotalcharges(collectedoruncollected)madebyYouinrelationtoYourShipRepairBusinessduringthePeriodofInsurancewhichareincludedintherevenuefiguresstatedinYourannualprofitandlossstatement/statementoffinancialperformance.NodeductionshallbemadefromtheGrossEarningsinrespectofanysub-contractedwork.

Hot Work meansworkinvolvingtheuseofoxyacetylenetorches,soldering,weldingoroiltankcleaningequipment.HotWorkconductedonanyWatercraftpreviouslyutilisedtocarryexplosives,oilorotherflammableliquidsorgasesorarisinginconnectionwithworkonornearanyfueltank,fuelorpipeline,bunkerspace,machinerycompartmentorengineroomisnotcoveredunlessYouhaverequestedtheOptionalCover2HotWorkextensionandhavecompliedwiththeconditionsoftheextensionasdetailedonpage13.

Hovercraftmeansanyvessel,craftordevicemadeorintendedtofloatonorinortravelonorthroughtheatmosphereorwateronacushionofairprovidedbyadownwardblast.

Intentional or Reckless Conduct meanseitheranact,orfailuretoact,wheresuchactoromissionisintendedtocauselossorperformedrecklesslyandwithknowledgethatsuchlosswaslikely.

Incidental Contracts means:

1. anywrittenrentalagreementorleaseofrealpropertywhichdoesnotimposeonYou:

• anobligationtoinsuresuchproperty;or

• anyliabilityregardlessoffault;

2. anywrittencontractwithanypublicauthorityforthesupplyofwater,electricity,fuel,gas,air,steam,wastedisposalfacilities,telecommunications,orotheressentialservices/utilitiesexceptthosecontractsinconnectionwithworkdoneforsuchauthoritiesorentities,butonlytotheextentofindemnifyinganysuchauthorityinrespectofliabilityarisingoutofYourShipRepairBusiness;

3. anywrittencontractmadeorenteredintowithanyrailwayauthorityinconnectionwithYourShipRepairBusiness.

Limit of Indemnity meanstheamountstatedintheSchedule.ThisisthemaximumamountWewillpayforanyclaimorclaimsarisingfromoneOccurrence,providedthat,foralllegalliabilitydirectlyorindirectlyarisingoutoforinanywayrelatedtoYourProductsorYourShipRepairBusiness,OurtotalaggregateliabilityduringanyonePeriodofInsurancewillnotexceedtheLimitofIndemnity.TheLimitofIndemnityisinclusiveofandnotadditionaltoanyapplicableDeductible.

Mould means,anysuperficialgrowthproducedondampordecayingorganicmatteroronlivingorganisms,andFungithatproducedMoulds.

Occurrence meansanyeventresultinginPersonalInjuryorPropertyDamageneitherexpectednorintendedbyYou.Anyseriesofeventsconsequentuponorattributabletoonesourceororiginatingcause,includingcontinuousorrepeatedexposuretosubstantiallythesamegeneralconditions,whichresultinPersonalInjuryand/orPropertyDamage,aredeemedtobeoneOccurrence.


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Period of Insurance meanstheperiodcommencingontheeffectivedateandendingontheexpirydateasshownintheSchedule.

Personal Injurymeans:

• death,bodilyinjury,sickness,disease,disability,shock,fright,lossofconsortium,mentalanguishandmentalinjury;

• assaultand/orbattery,notcommittedbyYouoratYourdirection,unlesscommittedforthepurposeofpreventingoreliminatingdangertoanypersonorproperty.

UnderthisPolicywording,PersonalInjurydoesnotincludelibel,slander,defamationofcharacterorinvasionofrightofprivacy,anybreachesofEmploymentPracticeslegislationoranyactoractsofsexualorphysicalmolestationoforsexualinterferencebyYou.

Policy meansthisdocument,theScheduleandanyendorsement,specification,attachmentormemorandaaffixedtoitandanyotherdocumentthatpartiesagreeinwritingwillformpartofthePolicy.

Pollutants meansanysolid,liquid,gaseousorthermalirritantorcontaminant,includingbutnotlimitedtosmoke,vapour,soot,fumes,acids,alkalis,chemicalsorwaste.Wasteincludesmaterialtoberecycled,reconditionedorreclaimed.

Pollution meansthedischarge,dispersal,releaseorescapeofsmoke,vapours,soot,fumes,acids,alkalis,toxicchemicals,toxicliquids,toxicgasses,wastematerials(includesmaterialstoberecycledreconditionedorreclaimed)orotherirritants,contaminantsorPollutantsintooruponanyproperty,land,theatmosphereoranywatercourseorbodyofwater(includinggroundwater).

Premises Liability meansYourlegalliabilityarisingfromtheownership,tenancyoruseofYourBusinessPremises(includingbuildings,outbuildings,structures,openspacesandcarparks),oranyotherpremises.

Principal’s Liability meansliabilityYouhaveinrespectofanOccurrencewhereYouareperformingYourShipRepairBusinessassub-contractortoanotherparty(the“Principal”).

Products meansanything(afterithasceasedtobeinYourphysicalpossessionorunderYourcontrol)manufacturedordeemedtohavebeenmanufactured,constructed,extracted,produced,processed,assembled,erected,installed,repaired,serviced,treated,sold,supplied(includingservices)ordistributedbyYou,whichformspartoftherepair,installation,assemblyormaintenanceworkcarriedoutbyYouonWatercraftinthecourseoforarisingfromYourShipRepairBusinessincludinganycontainerotherthanaVehicleusedtopackageorcontainYourProduct(s),butexcluding:

• second–handorusedparts;

• anyitemwhichdoesnotformpartoftherepair,installation,assemblyormaintenanceworkcarriedoutbyYouonWatercraftorasprovidedundertheAdditionalBenefit–Chandlery/IncidentalMarineSales–ProductLiability,unlessYouhaverequestedandWehaveagreedtoprovidetheOptionalcoverforOtherworkandthentotheextentofcoverprovidedundertheOptionalExtension–Otherworkonly.

Products Liability meansYourlegalliabilitytopaydamagesforanOccurrencecausedbyanunknowndefectinYourProducts.

Property Damage means:

a) physicalDamageto,physicallossoforphysicaldestructionoftangibleproperty,includinganyresultantlossofuse;or

b) lossofuseoftangiblepropertythathasnotbeenphysicallyDamaged,physicallylostorphysicallydestroyed,providedsuchlossofuseiscausedbyphysicalDamageto,physicallossoforphysicaldestructionofothertangibleproperty;

Proposal meanstheapplicationformcompletedbyYouoronYourbehalforthequotationslipsubmittedonYourbehalfinwhichYouprovidedtheinformationuponwhichWereliedtoenterintoYourPolicy.

Schedule meansthemostcurrentScheduletoYourPolicythatWegiveYouwhichspecifiesdetailssuchasPolicynumber,Deductible(s)andLimitsofIndemnity.ItalsoincludesanydocumentsthatWeandYouagreeinwritingwillformpartoftheSchedule.

Ship Repair Business means,andislimitedto,Youractivitiesasashiprepairerwhichincludesrepair,installation,serviceand/ormaintenanceworkcarriedoutonWatercraft,includingrigging,mastassemblyandoperationoftravellifts.

ShipRepairBusinessdoesnotmean:

• thebuilding,assemblyand/orrebuilding,reconstruction,extensionorconversionofWatercraft–otherthanasprovidedundertheAdditionalBenefits–BoatBuildingandreconstruction/extension;

• towingorstorageofWatercraft;

• drilling,blasting,coresampling,dredgingand/ordepositingofspoil,piledriving,cableorpipelaying,orprofessionaloilspillresponse;or

• anyotherpartofYourbusinessthatisnottheactivityofrepairing,servicingand/ormaintainingWatercraft;

unlessWehavespecificallyagreedinwritingtoacceptandprovidecoverforsuchactivitiesunderoneoftheAdditionalBenefitsonpage12orOptionalCoversnotedonpage13wheretherelevantOptionalCoverislistedintheSchedule.


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Workers Compensation Law meansanylawrelatingtocompensationforinjurytoworkersoremployees.

We, Us, Our, Allianz meanstheinsurer,AllianzAustraliaInsuranceLimitedAFSLicenceNo.234708ABN15000122850(Allianz)of2MarketStreet,Sydney,NSW,2000,actingthroughitsagentAllianzMarine&TransitUnderwritingAgencyPtyLimited.

You, Your, Yours means:

a) theinsuredshownintheSchedule;

b) anysubsidiarycompaniesoftheinsuredreferredtoinClausea)aboveexistingatthecommencementdateofthePeriodofInsuranceasshownintheSchedule,whoseplaceofincorporationiswithinAustraliaoritsexternalterritories;

c) (i) anycompanyacquiredby,andwhoseoperationsarecontrolledandmanagedby,YouoracompanyreferredtoinClauseb.aboveduringthePeriodofInsuranceasaresultofconsolidation,mergerorpurchase;

(ii) anysubsidiarycompanythatisincorporatedbyYou,orbyacompanyreferredtoinClauseb)above,duringthePeriodofInsurance;

Providedthat:

(iii) anysuchacquisitionorincorporationisnotifiedtoUswithinninety(90)days;

(iv) thenewly-acquiredorincorporatedcompanyisincorporatedwithinAustraliaoritsexternalterritories;

d) (i) anydirector,executiveofficer,EmployeeorpartnerofYouoracompanyreferredtoinClausesb)orc)above,butonlywhileactingwithinthescopeoftheirdutiesinsuchcapacity;and

(ii) anyshareholderofacompanyreferredtoinClausesa),b)orc)above,butonlywhileactingwithinthescopeoftheircapacityasshareholdersofsuchcompany;

e) anyprincipalinrespectofsuchprincipal’svicariousliabilityfortheactsoromissionsoftheInsuredshownintheScheduleoracompanyreferredtoinClausesb.orc.above,intheperformanceofworkforsuchprincipal,subjectalwaystotheextentofcoverandLimitofIndemnityprovidedinthePolicy.

Situation(s)meanstheSituation(s)statedintheSchedule.

Spore(s) meansanydormantorreproductivebodyproducedbyorarisingoremanatingoutofanyFungus/Fungi,Mould(s),mildew,plants,organismsormicroorganisms.

Standard Terms and Conditions meansthedocumentsettingoutYourentiretermsandconditionsrelatingtotheprovisionofYourShipRepairBusinesswhichexcludeYourliabilityforlossorDamagewhatsoeverandhowsoevercaused.

Subcontractors meanscompanies(andtheemployeesofsuchcompanies),personsorabusinesswhoarenotYourEmployeesthatareengagedbyYoutoperformworkassociatedwithYourShipRepairBusiness.

Sub Limit meanstherelevantsublimitshowninthePolicyforaparticularitemorOccurrencethatWewillnotpaymorethan.

Territorial Limits meansthegeographicalareaofoperationsWehaveagreedtoasspecifiedintheSchedule.Unlessotherwiseprovided,thisislimitedtoYourBusinessPremises,theshipyard,ortheportatwhichtheworkisbeingcarriedoutatandTrialTrips.

Terrorism Terrorism,oran“actofterrorism”includesanyact,orpreparationforaction,orthreatofactiondesignedtoinfluencethegovernmentdejureordefactoofanynationoranypoliticaldivisionthereof,orinpursuitofpolitical,religious,ideologicalorsimilarpurposestointimidatethepublicorasectionofthepublicofanynationbyanypersonorgroup(s)ofpersons,whetheractingaloneoronbehalfoforinconnectionwithanyorganisation(s)orgovernment(s)dejureordefacto,andwhich:

a) involvesviolenceagainstoneormorepersons;or

b) involvesDamagetoproperty;or

c) endangerslifeotherthanthatofthepersoncommittingtheaction;or

d) createsarisktohealthorsafetyofthepublicorasectionofthepublic;or

e) isdesignedtointerferewithortodisruptanelectronicsystem.

Trial Trip meansatrialtripfromtheyardorportatwhichtherepairsormaintenancewerecarriedoutwhichiswithin200kilometresfromsuchyardorport.

Vehicle meansanytypeofselfpoweredmachinethatisdesignedtotravelonwheelsoronself-laidtracks(otherthanship-lifters,marinetravellifts,jinkers,slipways,cradlesoranyothermobileship-liftingdevice).

Watercraft meansanyvessel,craftorthing(otherthanaHovercraftorsubmersible,fixedpontoons,berthsorjetties)designedtofloatonorinortravelonorthroughwater.


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CoverSubjecttotheterms,conditionsandexclusionscontainedinthisPolicyWewillindemnifyYou,uptotheLimitofIndemnityshownintheSchedule,forallamountswhichYoubecomelegallyliabletopayasCompensation(excludingpunitive,exemplary,aggravateddamagesandanyadditionaldamagesresultingfromthemultiplicationofcompensatorydamages)byreasonofYourlegalliabilityforanOccurrencethatarisesduringthePeriodofInsuranceinthecourseofYourShipRepairBusinesswhichresultsin:

a) LossoforDamageto:

(i) anyWatercraft,includingmachineryandequipmentwhichisinYourphysicalorlegalcontrolforthepurposeofYourShipRepairBusinessincluding:

• TrialTrips,shiftingandmovingoftheWatercraftwithinthelimitsoftheportatwhichtheworkisbeingcarriedout;

• itemstemporarilyremovedfromtheWatercraftincludingwhilstintransitforthepurposesofrepairs;

(ii) anyotherthirdpartyWatercraftinthevicinityofYourShipRepairBusinessorarisingfromYournavigationofaWatercraftreferredtoinClausea)(i);

(iii) cargo,contentsorotherpropertyonordischargedfromanyoftheWatercraftreferredtoinClausesa)(i)or(ii)above;

(iv) otherthirdpartyproperty(excludinghiredinequipmentandEmployeeorvisitorpersonalpropertyexceptasprovidedforundertheAdditionalbenefitssection);

b) removalofwreckcostsincurredbyYouinrelationtoWatercraftreferredtoinClausesa)(i)and(ii)andfollowingDamagetotheWatercraft;

c) ProductsLiability;

d) PersonalInjurybutexcluding:

• anyclaimarisingdirectlyorindirectlyunderWorkersCompensationLawororanyotherStatutoryorCommonLawliabilityinrespectoflossoflife,bodilyinjuryto,orillnessofanyworkerorotherpersonemployedinanycapacitywhatsoeverbyYou,YouragentsorSub-Contractorswhensuchlossoflife,bodilyinjuryorillnessarisesoutoforinthecourseoftheemploymentofsuchworkerorotherperson;

• PersonalInjurydirectlyorindirectlycausedbyasbestosorsilicaproducts.

WewillalsopayforthirdpartyPropertyDamageorPersonalInjuryarisingfromorinconnectionwithincidentalmedical,nursingandfirstaidservices,firebrigadeandambulanceservicesprovidedbyYouatYourBusinessPremisesincludingtheservicesadministeredbyYourEmployeesexceptwheremorespecificallyinsuredelsewhereandsubjectalwaystoallterms,clauses,exclusionsandconditionsofthisinsurance.

WereservetherightsofsubrogationagainstanySubcontractorexceptthosespecificallydeclaredtoUsandaddedtothisPolicyasanadditionalinsuredundertheOptionalCover5.Subcontractorsbelow.

Standard Terms and ConditionsForrepairsconductedtoanycommerciallyoperatedWatercraft,itisaconditionofthiscoverthatYoumustincorporateYourStandardTermsandConditionswhichexcludeYourliabilityforlossorDamagewhatsoeverandhowsoevercausedintotheagreementwiththeowneroftheWatercraftor,theirauthorisedrepresentative,priortocommencinganyrepair,serviceand/ormaintenance.

Principal’s LiabilityWhereYouareemployedasasub-contractortoanotherparty(The“Principal”)thecoverprovidedunderthisPolicywillindemnifyYouforamountsYouarelegallyliabletopayinrelationtoYourShipRepairBusinessassub-contractortothePrincipalforanOccurrenceduringthePeriodofInsuranceinthecourseoftheworkYouareengagedtoperform.

Supplementary paymentsSubjecttotheprovisosbelow,inadditiontotheLimitofIndemnity,Wewillalsomakethefollowingsupplementarypayments:

a) allcharges,expensesandlegalcostsincurredbyUsand/orbyYouwithOurpriorwrittenconsentintheinvestigation,reporting,settlementordefenceofanyclaimorsuitforCompensationforwhich:

(i) YouareentitledtocoverunderthisPolicy;or

(ii) YouwouldbeentitledtocoverunderthisPolicyifsuchclaimorsuitweretobesustained;

b) alllegalcostsawardedororderedorassessedagainstYouinanysuchsuitorclaimandallinterestonthejudgmentorsettlementamountaccruingaftertheentryofjudgmentagainstYouuntilWehavepaid,tenderedordepositedincourtsuchpartofthejudgmentasdoesnotexceedtheLimitofIndemnity;

c) allexpensesincurredbyYouforprovidingfirstaidtoothersforPersonalInjuryforwhichYouarecoveredbythisPolicy(otherthanmedicalexpensesprohibitedbylaw);


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e) WemayatanytimepaytoYoutheappropriateLimitofIndemnity(afterdeductingfromitanyamountsalreadypaid)oranylesseramountforwhichaclaimorclaimsmaybesettled.IndoingsoWewillrelinquishtheconductof,andshallbeundernofurtherliabilityinconnectionwith,suchclaimorclaimsexceptforcostsandexpensesincurredbeforeWemadesuchpayment.

IfYouobjecttoOurproposaltosettleorcompromiseanyclaimandwishtocontestorlitigatethematter,thenYoumayelecttodosobyinformingUsinwriting.However,shouldYoudecidetodoso,Ourliabilityshallnotexceedtheamountforwhich,butforYourelection,itcouldhavebeensettledorcompromisedbyUs,togetherwithcostsandexpensespayableinaccordancewiththetermsofthisPolicyandincurreduptothetimeofsuchelection,alwayssubjecttotheDeductibleandLimitofIndemnity.

DeductibleYoumustbeartheDeductibleshownintheScheduleforthisPolicyforeachOccurrence,includingforanysupplementarypaymentsmade.

Providedthat:

d) ifapaymentexceedingtheLimitofIndemnityhasorisrequiredtobemadetodisposeofaclaim,OurliabilitytomakesupplementarypaymentswillbelimitedtosuchproportionofthesupplementarypaymentsastheLimitofIndemnitybearstotheamountpaidorrequiredtobepaidtodisposeoftheclaim.WheretheapplicationofthisClausemeansthatYouareliabletorepaysupplementarypaymentstoUs,WemaysetofftheamountthatYouoweUsagainstanyotherentitlementsYouhaveunderthePolicy;

e) supplementarypaymentsinconnectionwithclaimsmadeand/oractionsinstitutedagainstYouwithintheUnitedStatesofAmericaorCanadaorclaimsandactionstowhichthelawsoftheUnitedStatesofAmericaorCanadaapplywillformpartoftheLimitofIndemnityandnotbeadditionaltoit;

f) ifinsettlingordisposingofanyclaimcoveredunderthisPolicyCompensationispayableinexcessoftheLimitofIndemnity,OuradditionalliabilityinrespectofanycostsincurredforaclaimarisingunderoneoftheAdditionalBenefitslistedonpage12orOptionalCoverslistedonpage13towhichaSublimitapplies,willbelimitedtothesameproportionofthesecostsastheSublimitbearstothetotalCompensationpayabletodisposeoforsettletheclaim.

Discharge of Liabilities/Claims Control ClauseWemay,atanytime,beentitled(butnotobliged)tocontrolortakeovertheconductoftheinvestigationdefenceandsettlementofanyclaimsuitorproceedingagainstYouwhichisorislikelytobethesubjectofindemnityunderthisinsurance.Inthesecircumstances:

a) Weshallhavefulldiscretionintheconduct,defenceorsettlementofanyclaim.ThisincludestherighttoinstructlawyerstoprovideadviceastoYourliabilityandtorepresentYou;

b) subjecttotheprovisionsoftheInsuranceContractsAct1984orMarineInsuranceAct1909,WehavetherighttorecoverorobtaincontributionfromanypersonagainstwhomYoumaybeabletoclaimandtherighttotakeactioninYourname;

c) YouandanyotherpersonentitledtobenefitunderthisPolicymustnothindertheserightsandmustgiveallsuchinformationandcooperationasWemayrequire;

d) Youmustnot,intheabsenceofOurconsent,makeoracceptanyofferorpayment,orinanyotherwayadmitliability,settleorattempttosettleanyclaim,ordefendanyclaim;


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Additional benefitsBerth occupiers liabilityThisPolicyisextendedtoprovidecoverforYourlegalliabilityarisingfromYourownership,tenancyoruseofaberth,jetty,pontoonandmooringinthecourseofYourShipRepairBusiness.

Boat building and reconstruction/extensionThedefinitionofShipRepairBusinessisextendedtoincludetheconstruction(includingreconstructionorextensionswhichentailachangeindimension,tonnageortype)ofWatercraftwithContractvaluesuptobutnotexceeding$50,000(unlessadifferentlimitisspecifiedintheSchedule)providedsuchworkdoesnotconstitutemorethan20%ofthetotalGrossEarningsofYourShipRepairBusiness,unlessotherwiseagreedbyUsinwriting.

Chandlery/Incidental marine sales – Product LiabilityThisPolicyisextendedtocoverYourlegalliabilityforincidentalchandlery/salesofmarineProductsnotdirectlyassociatedwithShipRepairs,providingsuchsalesdonotexceed10%ofYourtotalincomeandsubjecttoalimitanyoneOccurrenceof$100,000(unlessotherwiseagreedandlistedintheSchedule).

Employee personal propertyWhereWehaveacceptedaclaimforYourlegalliabilitytopayCompensationasaresultofoneofthecircumstanceslistedunderTheCoveritemsa)toi)above,WewillalsoindemnifyYouagainstlegalliabilityforDamagetothepersonalproperty,toolsandeffectsofanyofYourdirectors,partners,proprietors,officers,executivesorEmployeesfollowinganOccurrence,uptoamaximumof$1,500perEmployeeand$10,000intheaggregateanyoneOccurrence.

Hired in equipment used in Ship Repairing activitiesWhereYouhireinequipmentandmachineryonashorttermbasis(notexceeding60days)forthepurposesofYourShipRepairBusiness,WewillcoverYouwhereYouareliableforlossorDamagetosuchequipmentormachinery,providedsuchequipmentormachineryisnototherwiseinsuredunderapropertyinsurancepolicyarrangedbyYou,followinganOccurrenceduringthePeriodofInsurance,uptoamaximumof$100,000perOccurrence.

Inspections and valuations – errors and omissionsThisPolicyisextendedtocoverYourlegalliabilityforerrorsandomissionsassociatedwithYourprovisionofincidentalWatercraftvaluationorinspectionservices,subjecttoalimitof$200,000eachandeverylossorseriesoflossesandintheaggregatecausedbyanOccurrenceduringthePeriodofInsurance,unlessotherwiseagreedandnotedontheSchedule.

Thiscoverbenefitexcludes:

• reportsprovidedtoclientspriortothisPolicycommencing;

• deliberatemisrepresentations,errorsoromissionsmadebyYou;

• reportspreparedbyunqualifiedorinexperiencedstaffmemberswhichhavenotbeenthoroughlycheckedandapprovedbyaqualifiedseniorinspector/valuer;

• reportswhichdonotcontainanapproveddisclaimerofliabilitynotedandagreedbyUs.

ForthepurposesofthisAdditionalBenefittheterm“incidental”shallmeanmakingupnomorethan10%ofthetotalGrossEarningsofYourShipRepairBusiness.

ADeductibleof$5,000willapplytoclaimsunderthisAdditionalBenefitunlessadifferentDeductibleisspecifiedintheSchedule.

Rectification of faulty workmanship consequent upon DamageWhereYouarerequiredtoperformorre-perform,inwholeorpart,workonanypropertywhich:

1. YouhadcontractedtoperformworkorserviceonpriortotheOccurrencecausingDamage;and

2. theperformanceorre-performanceoftheworkorserviceismadenecessarybythatsameOccurrencecausingtheDamage;

inadditiontoanyindemnityprovidedelsewhereinthisPolicyinrespectofresultantDamage,YourPolicyisextendedtoinclude:

3. thewholesalecostofparts;and

4. thenetlabourcost;

requiredtoperformorre-performthework.

ThemostWewillpayunderthisAdditionalBenefitis$25,000forallOccurrencesintheaggregateforanyonePeriodofInsurance,unlessotherwisespecifiedintheSchedule.


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WewillindemnifyYouagainstlegalliabilityforPersonalInjuryorPropertyDamageincurredtothirdpartiesuptoalimitof$1,000,000eachandeverylossorseriesoflossescausedbyPollutionasaresultofanOccurrencewhichisidentifiedasoccurringataninstantaneousmomentintimeduringthePeriodofInsurance,isaccidentalandneitherexpectednorintendedbyYou,andbecameknowntoYouwithin72hoursafteritcommencingandisreportedtoUswithin72hoursthereafter.

Irrespectiveoftheabove,Wewillnotprovidecoverfororinrelationto:

a) contractualorassumedliability;

b) anylossofuseorconsequentialloss;

c) fines,penalties,punitivedamages,exemplarydamage,trebledamagesoranyotherdamagesresultingfromthemultiplicationofcompensatorydamages;

d) anysiteorlocationusedinwholeorinpartforthehandling,processing,treatment,storage,disposalordumpingofanywastematerialsorsubstances;

e) thecostofevaluatingand/ormonitoringand/orcontrollingseepageand/orPollutionand/orcontaminatingsubstances;

f) thecostoftesting,monitoring,containment,treatment,detoxifying,removing,neutralisingand/ornullifyingand/orcleaningupseepageand/orPollutionand/orcontaminatingsubstancesonpropertyatanytimeownedand/orleasedand/orrentedbyYouand/orunderYourcontrolwhetherornotanyoftheforegoingareorshouldbeperformedbyYouorbyothers;

g) theactual,allegedorthreateneddischarge,dispersal,releaseorescapeofPollutantscausedbyanyofYourProductsthathavebeendiscarded,dumped,abandonedorthrownawaybyYouorothers;

h) radioactivematerialorasbestos.

5. SubcontractorsThisPolicyisextendedtocovernamedSubcontractorsandtowaiveanyrightsofsubrogationagainstthemintheeventthattheyarethepartyfoundtoberesponsiblefortheOccurrencegivingrisetotheclaim.

6. Towing LiabilityThisPolicyisextendedtoprovidecoverforYourlegalliabilityundercontractsofcustomarytowageforthepurposeofenteringorleavingportormanoeuvringwithintheport.

7. Travelling workmenThisPolicyisextendedtocoverallamountswhichYoubecomelegallyliabletopayasCompensation(excludingpunitive,exemplary,aggravateddamagesandany

Optional coversSubjectotherwisetoallterms,clauses,exclusionsandconditionsofthisinsurance,inconsiderationofanadditionalpremium,thefollowingOptionalcoversareoperativeonlywhenselectedandspecifiedinYourSchedule.

1. DetentionThisPolicyisextendedtocoverallamountswhichYoubecomelegallyliabletopayasCompensation(excludingpunitive,exemplary,aggravateddamagesandanyadditionaldamagesresultingfromthemultiplicationofcompensatorydamages)fordetentionofanyWatercraftasaconsequenceofDamagetosuchWatercraftresultinginaclaimwhichisrecoverableunderCoverClauseA(i)or(ii)asoutlinedinthisPolicy.However,thisextensionshallnotcoveranylegalliabilityfordetentionassumedundercontractorotherwisethatextendstheliabilityimposeduponYoubylawintheabsenceofsuchcontract.

2. Hot Work extensionThisPolicyisextendedtocoverYourlegalliabilityforHotWorkconductedonanyWatercraftpreviouslyutilisedtocarryexplosives,oilorotherflammableliquidsorgasesorarisinginconnectionwithHotWorkonornearanyfueltank,fuelorpipeline,bunkerspace,machinerycompartmentorengineroomprovided:

• thatanyrules,regulationsandrequirementsoftheportorgovernmentalauthoritiesattheplacewheretheworkisbeingcarriedouthavebeencompliedwith;and

• YouobtainagasfeecertificatepriortothecommencementofanyHotWorkfromapartyapprovedbyUsorthenearestLloyd’sAgentevenifagasfreecertificateisnotrequiredbytheportorgovernmentauthoritiesattheplacewheretheworkisbeingcarriedout.

3. Other workThePolicyisextendedtocoverotherrepairoperationswhichdonotcomewithinthescopeofYourShipRepairBusinessincludingDamagetopropertyinYourcare,custodyorcontrolforthepurposeofbeingworkeduponincludingwhilstintransittoorfromYourBusinessPremisesortoorfromspecialistrepairers’ormanufacturers’premiseswheretheworkdonebythesepartiesisorganisedbyYou.TheGrossEarningsinrespectofsuchoperationsshallbedeclaredtoUsandadjustedattheagreedrate.

4. Pollution liabilityGeneralexclusionCTypesofclaims5.PollutiondoesnotapplywherethisOptionalCoveristaken


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additionaldamagesresultingfromthemultiplicationofcompensatorydamages)whenYouorYourEmployeesareonboardaWatercraftatseaorinanyportorplaceotherthanYourBusinessPremiseswithintheCommonwealthofAustraliaorsuchothergeographicallimitsasaredetailedinYourScheduleforthepurposeofcarryingoutYourShipRepairBusinessnotwithstandingthatYouorYourEmployeesmaybesignedonasmembersofthevessel’screw.

General exclusionsA. Property exclusionsYourPolicydoesnotcoveranyliability,costsorexpensesdirectlyorindirectlyarisingoutoforinanywayconnectedwith:

1. Aircraft, Hovercraft

• theownership,possession,maintenance,repair,operationorusebyYouoronYourbehalf;or

• anyofYourProductswhichareincorporatedintothestructure,machineryorcontrols;

ofanyAircraftorHovercraft;

2. Watercraft owned or operated by You

collisionornavigationalliabilityassociatedwithanyWatercraftownedoroperatedbyYou.Tower’sliabilityisalsoexcludedunlessYouhaverequestedandWehaveagreedtoprovidetheOptionalCover6.TowingLiability(onpage13);

3. Underground or underwater services

undergroundorunderwaterservices,cablesorpipesofanykind;

4. Property in physical or legal control

PropertyDamageto:

• propertyownedby,usedby,leasedorrentedtoYou,exceptasprovidedundertheAdditionalBenefit–HiredinequipmentusedinShipRepairingactivitieslistedabove;or

• propertyinYourphysicalorlegalcontrolotherthanpropertyreferredtoundertheCoverClauseA(i)to(iv)above.

5. Vehicles

theexistence,maintenance,oruseof:

• anylicensedtruck,automobile,orothermechanicallypropelledVehicle;

• anyunlicensedtruck,automobile,orothermechanicallypropelledVehicleonanypublicroadoroutsideYourBusinessPremisesorSituation.


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6. Sports Participation

anyPersonalInjurytoanypersonorDamagetothepropertyofanypersondirectlyorindirectlyarisingoutoforinanywayconnectedwith,theactualparticipationofsuchpersoninanysport,exerciseoractivityincluding,butnotlimitedto,racing,competitivewatersportsandwaterskiing.Participationincludestrainingorpracticefor,supervisionorcontrolofsuchactivities.

7. Salvage operations

Yourinvolvementinsalvageoperations.

8. Smoking

anyPersonalInjurydirectlyorindirectlyarisingoutof,orinanywayconnectedwith,thesmoking,inhalationoringestionoforexposureto:

• tobaccoorothersubstancesortheirsmoke;or

• anyingredientoradditivepresentinanyarticles,itemsorgoodswhichcontainorincludetobaccoorothersubstances.

9. Watercraft in storage

inrespectoforarisinginconnectionwithanyWatercraftacceptedbyYousolelytobestored.

10. Territorial limits

anyOccurrenceoccurringorarisingoutsidetheTerritoriallimitsstatedintheScheduleunlessspecificallyagreedtobyUsinwritingfollowingYournotification.

C. Types of claimYourPolicydoesnotcover:

1. Consequential loss, loss of use and penalties

PaymentsunderpenaltyclausesinanycontractforservicesinrespectofpropertyreferredtoinCoverClauseA(i)orA(iii)ordirectlyorindirectlyarisingoutoforinanywayconnectedwithconsequentiallossorlossofuseofanykind,includingthatresultingfrom

• lossoftheuseoftangibleproperty(nothavingbeenphysicallyDamagedordestroyed);

• delayorlackofperformancebyYouoronYourbehalfinrelationtoanycontractoragreement;

• thefailureofYourProductstomeetthelevelofperformance,quality,fitnessordurabilityexpresslyorimpliedlywarrantedorrepresentedbyYou;

• lossofcontract;

• depreciationinvalueofanyundamagedproperty.

Thisexclusionwillnotapplytoclaimsfordetention,demurrage,lossoffreight,lossofcharterorlossoftimewheretheOptionalcover1.Detentiononpage13isrequestedbyYouandagreedtobyUsinwritinginwhichcasethecoverspecifiedbythatwillclausewillapply.

B. Activity ExclusionsYourPolicydoesnotcoveranyliability,costsorexpensesdirectlyorindirectlyarisingoutoforinanywayconnectedwit.

1. Building and rebuilding, reconstruction or conversion

buildingorrebuilding,reconstructionorconversionofWatercraftexceptasprovidedundertheAdditionalBenefit-BoatBuildingandreconstruction/extensiononpage12orunlessotherwiseagreedbyUsinwriting.

Thisexclusionshallnotapplyto:

• anynewvesselorcraftbeingworkeduponbyYouwhereYouarenottheprincipalbuilder;

• anyrepairsoradjustmentsormaintenanceormodificationscarriedoutbyYouunderYourmaintenanceorwarrantyworkobligations.

2. Defamation, libel and slander

directlyorindirectlyarisingoutof,orinanywayconnectedwith,thepublicationorutteranceofanylibellous,slanderous,defamatoryordisparagingmaterial:

• madepriortothecommencementofthePeriodofInsurance;

• madeatYourdirectionorwithYourauthorityandwithknowledgeofitsfalsity;or

• relatedtoadvertising,broadcasting,telecastingorpublishingactivitiesconductedbyYouoronYourbehalf.

3. Divers

theactivityofdiving,whetherforcommercialorrecreationalpurposes.

4. Premises Liability

PremisesLiabilityexcepttotheextentofthecoverasprovidedundertheAdditionalBenefit–BerthOccupiersLiabilityonpage12.

5. Oil or petrol tank Watercraft or Watercraft carrying explosives or other flammable liquids

anoilorpetroltankWatercraftorWatercraftpreviouslyengagedincarryingexplosivesorinflammableliquidsorgassesorarisinginconnectionwithwork:

• onornearanyfueltankorpipelineofanoilburningWatercraft;

• onornearanybunkerspaceofanycoalburningWatercraft;

unlesstheOptionalCover2.HotWorkExtensiononpage13hasbeenrequestedandWehaveagreedtoprovidethisextension,inwhichcasethisexclusionwillnotapply.


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2. Contractual liability

Liabilityassumedunderanycontractoragreement.

Thisexclusiondoesnotapply:

• toliabilitythatwouldhavebeenimpliedbylawintheabsenceofsuchcontractoragreement;

• toliabilityassumedbyYouunderawarrantyoffitnessorqualityregardingYourProducts;

• toliabilityassumedunderIncidentalContracts;or

• whereYouhavedeclaredtoUswrittencontractsoragreementsandWehaveagreedtoextendcovertoincludeliabilityunderthesameandthisisspecifiedintheSchedule.

3. Employer’s liability

LiabilityforPersonalInjuryto:

• anyEmployeeifYouarerequiredbylawtoinsureorotherwisefund,whetherthroughself-insurance,statutoryfundorotherstatutoryscheme,allorpartofanycommonlawliability(whetherlimitedornot)forsuchPersonalInjury;

• anyworkerorotherpersonemployedinanycapacitywhatsoeverbyYouragents,contractorsorSubcontractors;or

• YourEmployees,agents,contractorsandSubcontractors,daylabour,suppliedlabouroranyoftheirworkerswhensuchPersonalinjuryarisesoutoforinthecourseoftheemploymentofsuchworkerorotherpersonsimposedby:

• anyWorkersCompensationLaw;

• theprovisionsofanyindustrialawardoragreementordeterminationoranycontractofemploymentorworkplaceagreementwheresuchliabilitywouldnothavebeenimposedintheabsenceofsuchindustrialaward,agreementordetermination;

• anylawrelatingtoEmploymentPractices;or

• anystatutoryorcommonlawliabilityinrespectofPersonalInjuryofanyworkerorotherpersonemployedinanycapacitywhatsoeverbyYou,Youragents,contractorsorSubcontractors.

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

finesorpenaltiesimposedbylaworliquidateddamagesorpunitive,exemplaryand/oraggravateddamagesandanyadditionaldamagesresultingfromthemultiplicationofcompensatorydamages.

5. Pollution

ExceptasprovidedintheOptionalcovers4.Pollutionliabilitycoveronpage13wheretaken,liabilitydirectlyorindirectlyarisingoutoforinanywayconnectedwith:

• theactual,allegedorthreateneddischarge,dispersal,releaseorescapeofPollutants;

• thetesting,monitoring,clean-up,removal,containment,treatment,detoxifyingorneutralisingofPollutants,whetherornotanyoftheforegoingareorshouldbeperformedbyYouorbyothers;

• theactual,allegedorthreateneddischarge,dispersal,releaseorescapeofPollutantscausedbyanyofYourProductsthathavebeendiscarded,dumped,abandonedorthrownawaybyothers;

6. Product defect

DamagetoYourProductsifsuchDamagedirectlyorindirectlyarisesoutoforisinanywayconnectedwith:

• anydefectinthemortheirharmfulnature;

• theirunsuitabilityforthepurposeforwhichtheywereintended;or

• theirinherentviceorinefficiencyorineffectiveness.

7. Product recall

directlyorindirectlyarisingoutof,orinanywayconnectedwith,theremoval,withdrawal,recall,inspection,repair,reconditioning,replacementorlossofuseofYourProductsoranypropertyofwhichYourProductsformapartiftheyarewithdrawnfromthemarketorfromusebecauseofanyknownorsuspecteddefectordeficiencyinthem.

8. Professional liability

directlyorindirectlyarisingoutoforinanywayconnectedwiththeprovisionbyYouoranyoneonYourbehalftoprovideprofessionaladviceoranyerrororomissionconnectedtherewith,exceptasprovidedundertheAdditionalbenefitforInspectionsandvaluations–errorsandomissionsonpage12.Thisexclusionwillnotapplywhereprofessionaladviceorserviceisgivenwithoutfeeorcharge.

D. Perils exclusionsYourPolicydoesnotcoveranyactualorallegedliability,costsorexpensesdirectlyorindirectlyarisingoutoforinanywayconnectedwith:

1. Asbestos and silica

asbestos,silicaproducts,silicafibres,silicadust,oranymaterialscontainingasbestosorsilicainwhateverformorquantity.


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• fraudulentordishonestacts,fraudulentmisappropriation,embezzlementandforgerybyYouorYourEmployee(s)actingaloneorincollusionwithanyotherperson(s);

• circumstanceswhereYouorYourEmployeeshavewaivedorrestrictedYourrightsofrecourseagainstanyperson,unlesspreviouslyagreedinwritingbyUs;

• You,Yourmanagers,YourEmployeesoranyoneforwhomYouarelegallyresponsiblebeing,withYourorYourmanagers’knowledge,undertheinfluenceofalcoholand/ordrugs;

• Yourfailuretocomplywithallstatutoryorotherobligationsandregulationsimposedbyanyauthorityrelatingtoinspectionandtesting;

• anybreachbyYou,orwithYourconsent,ofanylaw,by-law,government,localgovernment,statutoryauthority,orotherlegallyconstitutedpublicbody’sregulationdealingwiththestorageofhazardousgoods;

• thefailuretostoreallresins,fibreglass,solvents,cellulosebasedmaterialsandthelikeoutsidebuildingsinsuitablemetalorbrickstructures,exceptfortheamountofsuchmaterialsthatisrequiredinsidebuildingsinthecourseofconductingYourShipRepairBusinessactivitiesforthatday,inwhichcasethesematerialsshallbekeptinsidebuildingsinsecuremetalcontainers.

6. Wilful acts

anyactualoralleged:

• dishonest,fraudulent,criminal,unlawful,ormaliciousact;

• wilfulbreachofanystatute,contractorduty;

• conductintendedtocauseloss,Damageorliabilitywithrecklessdisregardfortheconsequences;

byYouoranypersonactingwithYourknowledge,consentorconnivance.

7. Magnetism/ Damage to data media

thepresenceofmagneticflux,oranylossofmagnetism(exceptcausedbylightning)orlossoforDamagetodatacarryingmedia.

8. Radioactive contamination, chemical, biological, bio-chemical and electromagnetic weapons

• ionisingradiationsfromorcontaminationbyradioactivityfromanynuclearfuelorfromanynuclearwasteorfromthecombustionofnuclearfuel;

• theradioactive,toxic,explosiveorotherhazardousorcontaminatingpropertiesofanynuclearinstallation,reactororothernuclearassemblyornuclearcomponentthereof;

2. Assault and battery

assaultand/orbatterycommittedbyYouoratYourdirection,butthisexclusionwillnotapplywhensuchassaultand/orbatteryiscommittedforthepurposeofpreventingPersonalInjuryorDamageoreliminatingdangertoaperson.

3. Your design errors, known faults or rectification of faults

• Yourdesigns,specificationsorformulasoranyerrororomissioninrespectofsuchdesign,specificationorformula,otherthanwheresuchworkwasnotprovidedforremuneration(suchasafeeorcommission)whethermixedwithremunerationforotherservicesornot;

• DamagecausedbyfaultsordefectsknowntoYouoranyEmployeewhoseknowledgeinlawwouldbedeemedtobeYoursandwhichwasnotdisclosedtoUsatthetimeYourPolicywasenteredinto;

• therectificationoffaultyworkmanship,otherthantotheextentofthecoverprovidedundertheAdditionalBenefits–RectificationoffaultyworkmanshipconsequentuponDamageonpage12;

• misrepresentationormisdescriptionofpropertyforsale;

• themisalignmentormisplacementofanypilesorcastingsorthecostofabandonmentofthemforanyreason.

4. Normal Losses

• wearandtear,lackofreasonablemaintenance,gradualdeteriorationorerosion,corrosion,rust,changeintemperature,mechanicalorelectricalbreakdownorderangementofmachineryorequipment,dampness,dryness,wetordryrot,shrinkage,evaporation,lossofweight,contamination,changeincolour,flavour,textureorfinish,verminorinsect;

• Mould,Fungus/Fungi,spore(s),mildew(s),mushroom(s),yeast(s)orbiologicalcontaminant(s),toxins,substances,vapours,gas,orotheremissionororganicorinorganicbodyorsubstancecreatedorproducedbyoremanatingfromthem,orthecostclean-up,remediation,containment,removalorabatementoftheabove.

5. Deliberate Damage, lack of due care and Employee dishonesty

• intentionalorrecklessconductbyYouorconductoccurringwithYourorYourEmployees’consentorarisingfromYourorYourEmployees’failuretotakereasonableprecautionstopreventaccidentswhichmaygiverisetoaclaimunderthisPolicy;

• Yourbeinginvolvedinanyillegaltradeorventure;


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E. Failure to notifyYourPolicydoesnotcoverYouforanyactualorallegedliability,costsorexpensesdirectlyorindirectlyarisingoutoforinanywayconnectedwith:

a) anypermanentortemporaryalteration(whichincludesoccupation,useandphysicalchanges)topropertysituatedatorbroughtontoYourBusinessPremiseswhichincreasestheriskofloss,DamageorliabilitywhereYouorYourEmployeeshavefailedtonotifyUsofanysuchalterationassoonasreasonablypracticable;

b) anOccurrenceinvolvinglossorDamagetothirdpartyWatercraftcoveredbythisPolicyunlessdiscoveredandreportedtoUsinwritingwithin1yearofdeliverytotheownersorwithin1yearaftertheworkiscompletedbyYou,whichevermayfirstoccur.

• anyweaponordeviceemployingatomicornuclearfissionand/orfusionorotherlikereactionorradioactiveforceormatter;

• theradioactive,toxic,explosiveorotherhazardousorcontaminatingpropertiesofanyradioactivematter.Theexclusioninthissub-clausedoesnotextendtoradioactiveisotopes,otherthannuclearfuel,whensuchisotopesarebeingprepared,carried,stored,orusedforcommercial,agricultural,medical,scientificorothersimilarpeacefulpurposes;or

• anychemical,biological,bio-chemical,orelectromagneticweapon.

9. Terrorism

directlyorindirectlycausedby,contributedtoby,resultingfromorarisingoutoforinconnectionwithanyactofTerrorism,asdefinedherein,regardlessofanyothercauseorOccurrencecontributingconcurrentlyorinanyothersequencetotheloss.

YourPolicyalsoexcludesanddoesnotcoverdeath,injury,illness,loss,Damage,costorexpensedirectlyorindirectlycausedby,contributedtoby,resultingfrom,orarisingoutoforinconnectionwithanyactionincontrolling,preventing,suppressing,retaliatingagainst,orrespondingtoanyactofTerrorism.

10. War

• war,civilwar,revolution,rebellion,insurrection,orcivilstrifearisingtherefromoranyhostileactbyoragainstabelligerentpower;

• capture,seizure,arrest,restraint,ordetainment(barratryandpiracyexcepted)andtheconsequencesthereoforanyattemptthereat;

• derelictmines,torpedoes,bombsorotherderelictweaponsofwar;

• destructionoforDamagetopropertybyorundertheorderofanygovernmentorpublicorlocalauthority.

11. Strike, lockout, labour disturbance

anystrike,lockout,labourdisturbance,riot,civilcommotionoractofanypersontakingpartinthese,orfromanyactofanypersonactingmaliciously.


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GST noticeYourPolicyhasaGSTprovisioninrelationtoYourpremiumandOurpaymenttoYouforclaims.ItmayhaveanimpactonhowYoudeterminetheamountofinsuranceYouneed.PleasereadthePolicycarefully.SeekprofessionaladviceifYouhaveanyqueriesaboutGSTandYourinsurance.

Limit of Indemnity

AllmonetarylimitsinYourPolicymaybeincreasedforGSTinsomecircumstances(seebelow).

Claim settlements – Where We agree to pay

WhenWecalculatetheamountWewillpaytoYou,Wewillhaveregardtotheitemsbelow:

(i) WhereYouareliabletopayanamountforGSTinrespectofanacquisitionrelevanttoYourclaim(suchasservicestorepairaDamagediteminsuredunderYourPolicy),WewillpaytheGSTamount.

WewillpaytheGSTamountinadditiontotheLimitofIndemnityorotherlimitsshowninYourPolicyorintheSchedule.

IfYourLimitofIndemnityisnotsufficienttocoverYourloss,WewillonlypaytheGSTamountthatrelatestoOursettlementofYourclaim.

WewillreducetheGSTamountWepaybytheamountofanyinputtaxcreditstowhichYouareorwouldbeentitled.

(ii) WhereWemakeapaymentunderYourPolicyasCompensationinsteadofpaymentforarelevantacquisition,WewillreducetheamountofthepaymentbytheamountofanyinputtaxcreditthatYouwouldhavebeenentitledtohadthepaymentbeenappliedtoarelevantacquisition.

Disclosure – Input tax credit entitlement

IfYouregister,orareregistered,forGST,YouarerequiredtotellUsYourentitlementtoaninputtaxcreditonYourpremium.IfYoufailtodiscloseorunderstateYourentitlement,YoumaybeliableforGSTonaclaimWemaypay.YourPolicydoesnotcoverYouforthisGSTliability,orforanyfine,penaltyorchargeforwhichYoumaybeliable.

Other Insurance/Non-contribution ClauseWhereYouareawareofinsuranceorinsurancesalreadyeffected,orwhichmaybesubsequentlyeffectedcovering,whetherinwholeorinpart,YourliabilityorexposureswhicharethesubjectmatterofthisPolicy,YouarerequiredtonotifyUsandmustprovideUswithfullinformationandallreasonableassistanceintherecoveryofOurrateableproportionofanyclaimpaymentsWemake.

General conditionsTheseGeneralconditionsareapplicabletoYourPolicy.

IfYoudonotcomplywiththeGeneralconditions(otherthanthecancellationcondition),WemaycancelYourPolicyand/orreduceorrefusetopayaclaim,totheextentpermittedbylaw.

Actions of parties other than YouTheactsoromissionsof:

a) atenantofYours;or

b) theowneroforanothertenantinthebuildingYouoccupy;

whichresultsinabreachofanyprovisionofYourPolicywillnotaffectYourentitlementtocoverprovidedthat:

c) theactoromissionwascommittedwithoutYourpriorknowledge;and

d) YounotifyUsofthehappeningorexistenceoftheactoromissionassoonasYoubecomeawareofit;and

e) YoupayanyreasonableextrapremiumthatWerequire.

AssignmentNotransferofinterestunderthisPolicyorinanymoneyswhichmaybeormaybecomepayableunderthisPolicyistobebindingonorrecognisedbyUsunlessadatednoticeofsuchtransferofinterestissignedbyYou,andbythepartytowhomtheinterestisbeingtransferredtoisprovidedtoUsbeforethepaymentofanyclaimorreturnofpremiumbeingmadeunderthisPolicy.NothinginthisconditionistobeconsideredasanagreementbyUstoasaleortransfertoanewentity.

Cross liabilityWheretheprotectionprovidedbyYourPolicycoverstheinterestofmorethanoneparty,anyactoromissionofanindividualpartywillnotprejudicetherightsoftheremainingparties,subjectto:

a) GeneralexclusionDPerilsexclusion6.Wilfulacts;and

b) theremainingparties,immediatelyonbecomingawareofanyactoromissionthatincreasestheriskofloss,Damageorliability,givingnoticeinwritingtoUsand,ondemand,payingsuchreasonableadditionalpremiumasWemayrequire;and

c) theLimitsandSublimitswithinthePolicyapplyingasthoughthisGeneralconditiondidnotapply.

Governing law and jurisdictionYourPolicyisgovernedbythelawsofAustralia.AnydisputerelatingtoYourPolicyshallbesubmittedtotheexclusivejurisdictionofanAustralianCourtwithintheStateorTerritoryinwhichYourPolicywasissued.


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d) ToensurethatallweldingandflamecuttingcomplieswiththemostcurrentAustralianStandards,regulationsandlegislationregardingcuttingandweldingsafetyanditsamendments(theAustralianStandardsareadetailedCode,designedtoprotectpersonsandpropertyfrominjurybyfireorexplosioninthecourseofcutting,heatingorweldingoperations)and,whererequired,obtainagasfreecertificateand/oranyotherauthorisationwhichislegallyrequired;

e) tocomplywiththemanufacturer’srecommendationsfortheuseandmaintenanceofallequipmentused;

f) toonlyemploycompetentEmployees,agentsandcontractorsandensuretheymeettherequirementsspecifiedinClausesa)toe)above;

g) takereasonableprecautionstopreventthemanufacture,saleorsupplyofdefectiveProducts;

h) atYourexpense,takereasonableactiontotrace,recallormodifyanyProductscontaininganydefectordeficiency,whichdefectordeficiencyYouhaveknowledgeoforhavereasontosuspect.

InspectionsWe(oragentsappointedbyUs)havetherighttoinspectandexamine,bymutualappointment,anyproperty,BusinessPremisesorWatercraftwhichisthesubjectofthisinsurance.

Premium adjustmentThepremiumforthisPolicyhasbeencalculatedontheestimateofGrossEarnings(withoutdeductionforanysubcontractedwork)givenbyYou.YoumustkeepaccuraterecordscontainingallrelevantparticularsofYourGrossEarningsandatanyreasonabletimeallowUs(orOurauditors)toinspectsuchrecords.

FollowingtheexpiryofthePeriodofInsuranceYoumustsupplyUswithsuchrecordsasWemayreasonablyrequiretodeterminewhattheactualGrossEarningsfigureswereforthePeriodofInsurance.

ThedifferencebetweenthepremiumbasedontheactualfiguresattheendofthePeriodofInsuranceandthepremiumcalculatedatinceptionwillbepaidbyorallowedtoYou,asthecasemaybe,butinanyeventaminimumretainedpremiumequivalentto75%,orasmayotherwisebeagreed,ofthefullpremiumbasedontheinitialestimateswillberetainedbyUs.

WeagreetowaiveanyadjustmentofpremiumwherethedifferencebetweentheactualGrossEarningsandtheestimateGrossEarningsgiventoUsbyYouislessthan10%,orwhereadepositpremiumof$5,000orlesswaschargedandthefinaladjustedpremiumbasedonactualfiguressuppliedbyYoudoesnotexceed$5,000.

Prohibited cover or paymentsIrrespectiveofanyotherprovisionofthePolicy,Weshallnotbedeemedtoprovidecoverorbeliabletopayanyclaimorprovideanybenefit(includingarefundapremium)hereundertotheextentthattheprovisionofsuchcover,paymentofsuchclaimorprovisionofsuchbenefitwouldcontraveneorotherwiseexposeUstoanypenalty,sanction,prohibitionorrestrictionunderUnitedNationsresolutionsorthetradeoreconomicsanctions,lawsorregulationsofAustralia,NewZealand,theEuropeanUnion,UnitedKingdomorUnitedStatesofAmerica.

Reasonable care and maintenanceYoumusttakeallreasonablecare:

a) topreventand/orminimiseloss,Damageorliability;

b) tomaintainYourShipRepairBusinessandshipyard/premisesinsoundcondition,inparticulartominimiseoravoidloss,Damageorliability;

c) tocomplywithallstatutoryobligations,by-laws,regulations,publicauthorityrequirementsandsafetyrequirements,includingthoserelatingtofireappliancesandtheuseandstorageofhazardousgoods;


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C. AfterYouhaveadvisedUsofanyloss,DamageorliabilityassetoutinthisGeneralCondition:

(i) YoumustcomplywithallthetermsoftheGeneralConditionsbeforeWewillmeetanyclaimunderYourPolicy;

(ii) WehavetherighttorecoverfromanypersonagainstwhomYoumaybeabletoclaimanymoneypaidbyUsandWewillhavefulldiscretionintheconduct,settlementordefenceofanyclaiminYourname.TheamountrecoveredwillbeappliedfirsttoreducingtheamountbywhichYourlossexceedstheDeductibleapplied.AnybalanceremainingafterYouhavebeenfullycompensatedforYourloss,uptotheamountWehavepaidtoYoutosettleYourclaim(includingOurlegalfeesandothercostsforrecovery),willberetainedbyUs;

(iii) Wemaytakeoverandconduct,inYourname,thedefenceorsettlementofanyclaimandWewillhavefulldiscretionintheconductofanyproceedingsinconnectionwiththeclaim;

(iv) WemaypayYoutheLimitofIndemnityunderthePolicy(afterdeductionofanysumorsumsalreadypaidbyUs)oranylesseramountforwhichaclaimorclaimsunderthePolicymayreasonablybesettled.AfterWehavepaidYou,Wewillnolongerbeliablefortheclaim(s)(orfutureconductoftheclaim(s))exceptforcostsandexpensesincurredupuntilthetimeWepayYou,thatWepreviouslyagreedtopay.

ClaimsA. AssoonasYoubecomeawareofanythinghappening

whichmayresultinaclaimunderYourPolicy,Youmust,atYourownexpense:

(i) contactUsassoonaspossibletoadvisehowtheloss,Damageorliabilityoccurred;

(ii) takeallreasonableactiontominimiseanypossibleclaim;

(iii) asfaraspossible,preserveanyProducts,appliances,plantorotheritemswhichmightprovenecessaryorusefulasevidenceuntilWehavehadanopportunitytoinspectthem;

(iv) giveUsalltheinformation,proofandassistanceWemayrequiretoprosecute,defendorsettleYourclaim,includingdetailsofanyotherinsuranceeffectedbyYouoronYourbehalf;

(v) immediatelysendUsanyclaim,writ,summons,orfulldetailsofanyrelevantlegalorotherproceedingssuchasanimpendingprosecutionorinquestthatYoureceiveorofwhichYoubecomeaware;

(vi) atalltimes,giveUsalltheinformationandassistanceWemayreasonablyrequire.

B. Youmustnot:

(i) admitliabilityfor,takeanyactionwhichmaybeconsideredtobeanadmissionofliabilityfor,orofferoragreetosettle,anyclaimwithoutOurwrittenconsent;

(ii) authorisetherepairorreplacementofanythingwithoutOuragreementunlessforsafetyreasonsortominimiseorpreventfurtherimminentloss,Damage,liabilityorinjury;

(iii) release,agreenottosueon,waiveorprejudice,anyrightofrecoveryagainstanythirdpartywhowouldbeliabletocompensateYouwithrespecttothatloss,Damageorliabilityotherwise,

orWemayrefusetopayYourclaim,totheextentpermittedbylaw.


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For all enquiries please call your insurance intermediary

allianzmarineandtransit.com.au

Allianz Marine & Transit Underwriting Agency Pty LimitedAFS Representative No. 423910 ABN 98 155 554 279Level 1, 61 Lavender Street, Milsons Point NSW 2061as agents of the insurer Allianz Australia Insurance Limited AFS Licence No. 234708 ABN 15 000 122 850 PO

L400

BA/A

M&

T 0

3/15


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