Employers' Liability Insurance Notice of Change

Transcription

1 Employers' Liability Insurance

2 Employers' Liability Insurance Significant Policy Cover Changes Your policy has been revised as a response to a need to update and/or clarify cover. The undernoted summarizes the changes relating to this revision as it impacts the standard policy form. We recognise that some policyholders may previously have been issued with not the preceding policy version but an even earlier version of this insurance. Therefore in addition to listing the changes made to this new current version of your policy we also set out the changes made when the preceding version of the policy was released. This document does not reflect specific customer modifications to the policy as confirmed by any schedule or endorsement. Current new version changes to your policy P TEM Employers liability insured section Contractual liability Whilst this clause extends cover to include indemnities given under contract the clause has been modified to explain that cover does not extend beyond the indemnity stated under the insuring clause. So indemnities agreed by you under contract that go beyond your policy cover are not insured. Statutory defence costs The clause has been amended to make clear that cover for these costs is contingent upon our prior consent so as to ensure that such costs are reasonable in the circumstances and related to an insured injury. We have also introduced a Statutory defence costs exclusion (no longer limited to just manslaughter costs) so that the buyback of cover by this clause may be sub-limited as shown in your schedule. In addition we have removed the overlap cover for general prosecution costs and manslaughter prosecution costs. Prosecution costs arising from manslaughter now only form part of the manslaughter limit. Employment disputes Re-phrased to clarify the nature of employment law violations that are excluded by the policy. Road traffic cover Cover was always intended to exclude indemnities covered by compulsory road traffic legislation. The wording did not meet our intentions with regard to driving outside the EU so the clause has been revised. General terms and conditions 2013 revision Non-disclosure and misrepresentation The legal and regulatory landscape in this area is also evolving. The Consumer Insurance (Disclosure and Representation) Act 2012, which came into force on 6 April 2013, abolished basis clauses in consumer policies, while the Financial Ombudsman Service (FOS) has customarily disapplied 'basis of contract' clauses when adjudicating micro-business disputes. In addition, the Law Commission is now recommending a similar reform in business insurance contracts and is likely to propose an abolition of basis clauses in its draft Bill which is expected in December NTEM Page 2 of 5

3 Employers' Liability Insurance Given the impending legal changes and in consideration of feedback from the market, QBE is now able to clarify its position with regard to basis of contract, fraud, non-disclosure and misrepresentation clauses. Our new material inaccuracy clause addresses these issues and has been prepared with the anticipated recommendations of the Law Commission's final report firmly in mind. Sanctions Following a review of HM Treasury s criticism of market wordings we considered that our current clause is not fully compliant. This has been revised. Our regulator and other compliance changes The financial services regulator has changed both its structure and name. These changes take effect from the 1st April 2013 and insurers are required to amend all documentation to show the new details. These compliance changes do not affect your policy cover. For QBE and depending upon which member of our group provides your insurance this means changing our regulatory status to: QBE Insurance (Europe) Limited QBE Insurance (Europe) Limited (registered in England number ; Home State - United Kingdom. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority; registration number ) QBE Casualty Syndicate 386 QBE Casualty Syndicate 386 managed by QBE Underwriting Limited (company number , Home State - United Kingdom. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority; registration number ). QBE Syndicate 1886 QBE Syndicate 1886 is managed by QBE Underwriting Limited (company number , Home State - United Kingdom. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority; registration number ) Financial Services Compensation Scheme (FSCS) Coincidental with this change the Financial Services Compensation Scheme (FSCS) have moved address Complaints Our contact details in relation to complaints needed revision. Data Protection Act 1998 We have taken the opportunity to review and rename our Data Protection Act 1998 statement in anticipation of future EU Regulations. Preceding version changes to your policy P TEM Employers liability 2012 revisions Operative clause This now refers to compensation in addition to damages. NTEM Page 3 of 5

4 North America Employers' Liability Insurance Cover is extended to include North American jurisdiction in respect of temporary employment in North America but applies only to clerical, promotional, sales conference attendance and other similar nonmanual work. Cover for manual work activities and jurisdiction is excluded but will be offered on request. Other insureds clause/ Principals clause The extent of the obligation for other insureds to observe the policy terms has been relaxed. Medical treatment Now extended to indemnify any qualified medical practitioner or health care practitioner employed by the insured but not where other valid or collectible insurance available. Statutory defence costs Protection from Harassment Act 1997 defence costs are now included. Further statutory defence costs have been segmented into three being those for manslaughter, prosecution costs and other statutory defence costs. Each has its own sub-limit of indemnity which is costs inclusive. The sub-limits are shown in the schedule. War exclusion/ Hostile territories The distinct between hostile territories and terrorism/war has been dropped. Cover for war and terrorism remains sub-limited and the sub-limit is shown in the schedule. Subrogation rights Subrogation rights against the insured s subsidiaries are waived as are subrogation rights against third parties but only to the extent that the insured has waived their rights under contract. North American jurisdiction The exclusion is amended to exclude just indemnity to parties which are incorporated, domiciled or resident in North America and to exclude punitive damage. Revisions to general terms and conditions 2012 Sub-limits Sub-limits previously shown within the text of the policy wording are now moved to the schedule. Excess We have clarified that where more than one excess can apply to a claim, only one excess (the highest amount) will actually apply; also that the excess applies to defence costs (other than adjusters fees) as well as to damages. Observance We have clarified the different remedies available for the insurer if there is a breach of a condition by the insured as opposed to a breach of a condition precedent. Claims notification There is some clarification to the notification requirements, for example for certain items required to be notified within 48 or 72 hours, these have now been amended to 3 working days. NTEM Page 4 of 5

5 Non-disclosure Employers' Liability Insurance The text for basis of information at inception has been deleted. Non-disclosure and misrepresentation now form part of the Fraud, non-disclosure or misrepresentation clause. The effect is to change the implied condition of warranting the truth to one of voidable at our option or to a condition precedent to liability depending upon whether the wrong was fraudulent or otherwise. Sanctions A clause has now been introduced to preclude coverage where the operation of the coverage would be in breach of legal sanctions. Employers Liability Tracing Office This new clause describes the regulatory requirement for information on the Insured and its insured subsidiaries to be supplied to the Employers Liability Tracing Office. Claims and suits All mentions of suits are now removed as it is thought unnecessary to have both words. Defence costs There is evidence that cover for defence costs is being exploited to pay unnecessary but exceptional high legal rates. Whilst these costs have always been incurred with our prior consent we have deleted the qualification which will not be unreasonably withheld so that QBE has greater control over such expenditure. Fees for HSE Intervention The policy was previously silent as regards to fees for intervention. These fees are now expressly excluded but in exceptional circumstances cover may be provided by endorsement on case by case basis. As with all aspects of the standard policy cover it is generally possible to negotiate extensions of cover with the underwriter. NTEM Page 5 of 5

6 QBE European Operations Plantation Place 30 Fenchurch Street London EC3M 3BD tel +44 (0) fax +44 (0) QBE European Operations is a trading name of QBE Insurance (Europe) Limited, no ('QIEL'), QBE Underwriting Limited, no ('QUL'), QBE Management Services (UK) Limited, no ('QMSUK') and QBE Underwriting Services (UK) Limited, no ('QSUK'), whose registered offices are at Plantation Place, 30 Fenchurch Street, London, EC3M 3BD. All four companies are incorporated in England and Wales. QIEL and QUL are Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. QUL is a Lloyd's managing agent. QMSUK and QSUK are both Appointed Representatives of QIEL and QUL.