Combined Liability Insurance Technology and Communications. Policy document

Transcription

1 Combined Liability Insurance Technology and Communications Policy document

2 Contents A warm welcome to Zurich 3 Your Combined Liability Insurance for the Technology and Communications Sectors policy 4 General definitions 7 General exclusions 10 General provision 11 General conditions 12 Part A employers liability 15 Part B public and products liability 19 Part C professional indemnity 32 Our complaints procedure 45 2

3 A warm welcome to Zurich Thank you for taking out your Combined Liability Insurance policy with us and welcome to Zurich Insurance plc. Zurich Insurance plc is a member of a group of companies of which the ultimate parent company is Zurich Insurance Group Ltd, a company registered in Switzerland (Zurich). Zurich has a global network of subsidiaries and offices in North America and Europe as well as in Asia Pacific, Latin America and other markets. Founded in 1872, the Group is headquartered in Zurich, Switzerland. It employs approximately 60,000 people serving customers in more than 170 countries. At Zurich we have your future in mind and look forward to working closely with you. 3

4 Your Combined Liability Insurance for the Technology and Communications Sectors policy This policy is a contract between you and us. You have made a proposal to us which is the basis of and forms part of this contract. This policy and any schedule and endorsement should be read as if they are one document. We will insure you under those parts stated in the schedule during any period of insurance for which we have accepted your premium provided always that all the terms and conditions of this policy are kept. Our liability will in no case exceed the amount of any limit of indemnity stated in this policy, the schedule or any endorsement to this policy. Any reference to the singular will include the plural and vice versa. Any reference to any statute or statutory instrument will include any amendments thereto or re-enactment thereof. Any heading in this policy is for ease of reference only and does not affect its interpretation. Law Applicable to this Contract In the UK the law allows both you and us to choose the law applicable to this contract. This contract will be subject to the relevant law of England and Wales, Northern Ireland, Scotland, Isle of Man or the Channel Islands depending upon your address stated in the schedule. If there is any dispute as to which law applies it will be English law. You agree to submit to the exclusive jurisdiction of the English courts. For and on behalf of Zurich Insurance plc Stephen Lewis Chief Executive Officer of Zurich Insurance plc, UK Branch. This is a legal document and should be kept in a safe place. Please read this policy and any schedule and endorsement carefully and if they do not meet your needs return them to us or your insurance intermediary. 4

5 How we use personal information We hold personal information in accordance with the Data Protection Act The information supplied to us by you may be held on computer and passed to other insurers and reinsurers for underwriting and claims purposes. You should show this to anyone whose personal information may be processed to administer this policy including handling any claims. We use a variety of security technologies and procedures to help protect personal information from inappropriate use, and we will continue to revise procedures and implement additional security features as new technology becomes available. We may use personal information for underwriting and claims purposes, statistical analysis, management information, market research, audits on the handling of claims, systems integrity testing, and risk management. We will only share personal information as described in this notice or where we are required or allowed to do so by law. We may record or monitor telephone calls for security and regulatory purposes. Policy administration In order to administer your insurance policy and any claims made against this policy we may share personal information provided to us with other companies within the Zurich Insurance Group and with business partners including companies inside and outside the European Economic Area. If we do transfer personal information including where we propose a change of underwriter we make sure that it is appropriately protected. We may conduct searches about anyone whose personal information may be processed to administer this policy (including handling any claims) using publicly available sources. Examples are the edited electoral roll, county court judgments/scottish decrees, bankruptcy registers and other public databases. This helps us assess applications for insurance, provide renewal quotations and check the accuracy of information. These searches may be recorded by credit reference agencies but they will not affect any credit standing. Claims history Under the conditions of this policy you must tell us when you become aware of any incident that could give rise to a claim under this policy, whether or not it is your intention to claim. When you tell us about an incident or claim we may pass information relating to it to the Claims and Underwriting Exchange Register (CUE), run by Insurance Database Services Ltd (IDSL) or other relevant database. We and other insurers may search these databases when you apply for insurance, in the event of any incident or claim or at time of renewal to validate your claims history or that of any other person or property likely to be involved in the policy or claim. This helps to check information provided and prevent fraudulent claims. 5

6 Fraud prevention and detection In order to prevent and detect fraud we may at any time: a) share information about you with other organisations including the police b) conduct searches using publicly available databases c) undertake credit searches d) check and share your details with fraud prevention and detection agencies. If false or inaccurate information is provided and fraud is identified details will be passed to fraud prevention agencies. Law enforcement agencies may access and use this information. We and other organisations may also access and use this information to prevent fraud and money laundering for example when: a) checking details on applications for credit and credit related or other facilities b) managing credit and credit related accounts or facilities c) recovering debt and tracing beneficiaries d) checking details on proposals and claims for all types of insurance e) checking details of job applicants and employees. Please contact us if you want to receive details of the relevant fraud prevention agencies. We and other organisations may access and use from other countries the information recorded by fraud prevention agencies. Data protection rights Individuals have certain rights under the Data Protection Act 1998, including the right to ask for a copy of the information we hold about them. We may make a small charge for this. Individuals also have the right to ask us to correct their information if it is inaccurate. If you want to know more about how we use personal information or have any data protection questions, please contact the Data Protection Officer, Zurich Insurance plc, 3000 Parkway, Whiteley, Fareham, Hants, PO15 7JZ. 6

7 General definitions Certain words in this policy have special meanings. These meanings are given below and apply where the words appear in bold. Business Not applicable to part C. a) Those activities stated in the schedule b) maintenance of property and premises owned or occupied by you c) the provision and management of catering, social, sports and welfare organisations for the benefit of any employee d) first aid, security, fire and ambulance services e) private work carried out by an employee for any director, member or senior executive of yours f) participation in exhibitions. Business Partner Any person in business with you under the terms of a partnership agreement whether express or implied under legislation. Damage Physical loss or damage. Data Information stored or transmitted in digital format. Electromagnetic Field Any field of force that is made up of associated electric and magnetic components. Electromagnetic Radiation Any succession of electromagnetic waves. Electromagnetism Magnetism that is developed by a current of electricity. Employee Any natural person who is: a) under a contract of service or apprenticeship with you b) a labour master or labour only subcontractor or persons supplied by any of them c) self employed d) under a work experience or similar scheme e) hired or borrowed by you from another employer and working for you in connection with the business while under your direct control or supervision. Intellectual Property Rights Copyright, trademark, database rights, design right or registered domain name but does not include patent or trade secret. 7

8 Malware Any code specifically designed to: a) erase or corrupt data b) damage or disrupt any network or system c) circumvent any security product or service. Member Any member of yours or your committees or subcommittees. Nuclear Installation Any installation of such class or description as may be prescribed by regulations made by the relevant Secretary of State from time to time by statutory 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 radiation 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 production or use of nuclear fuel. Nuclear Reactor Any plant including any machinery, equipment or appliance whether affixed to land or not designed or adapted for the production of atomic energy by a fission process in which a controlled chain reaction can be maintained without an additional source of neutrons. Products Hardware, firmware, software or other electronic device or component designed or manufactured by you or any such items that have been installed, supplied or sold by you. Property Physical property. Related Entity Any individual or entity or its subcontractors or assignees: a) which wholly or partially own, operate or manage you b) in which you have an ownership interest in excess of 20% c) which is controlled, operated or managed by you. Services Any advice, design, or work on any specification performed by you or on behalf of you for a fee or for which a fee would ordinarily be charged. Special Definitions Wherever words commencing with a capital letter appear within a part of this policy following Special Definition they will have the same defined special meaning within that part of this policy. 8

9 Territorial Limits Great Britain, Northern Ireland, the Isle of Man and Channel Islands. Terrorism a) Any act or preparation in respect of action or threat of action designed to influence the government de jure or de facto of any nation or any political division thereof or in pursuit of political, religious, ideological or similar purposes to intimidate the public or a section of the public of any nation by any person or group whether acting alone or on behalf of or in connection with any organisation or government de jure or de facto and which: i) involves violence against one or more persons ii) involves damage to property iii) endangers life other than that of the person committing the action iv) creates a risk to health or safety of the public or a section of the public v) is designed to interfere with or to disrupt an electronic system b) any action in controlling, preventing, suppressing, retaliating against or responding to any act or preparation in respect of action or threat of action described in a) above. Third Party Any natural person, firm, individual, partnership, organisation or corporation other than you and will not include any related entity or any other person or entity having a financial or executive interest in you. Volunteer Any person volunteering to assist or co-opted to assist you in the business. Unauthorised Access Use of your computer system or network infrastructure by any person not authorised to do so including any Employee. We, Us, Our or Ours Zurich Insurance plc. You, Your, Yours or Yourselves The person, people (either acting in partnership or on behalf of an unincorporated organisation) or the company stated in the schedule as the insured including your predecessors. 9

10 General exclusions This policy does not cover: 1. Asbestos Not applicable to parts A or C. liability, loss, cost or expense directly or indirectly caused by, contributed to by or arising out of any asbestos, asbestos fibres or any derivatives of asbestos including any product containing any asbestos fibres or derivatives 2. Foreign Operations any associated or subsidiary company of yours or branch office or representative of yours with power of attorney domiciled outside the territorial limits 3. Nuclear and War Risks and Government or Public Authority Order Not applicable to part A. death, injury, disablement or loss or damage to any property or any loss or expense 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) ionising radiations from or contamination by radioactivity from any nuclear fuel or from any nuclear waste from the combustion of nuclear fuel b) the radioactive, toxic, explosive or other hazardous or contaminating properties of any nuclear installation, nuclear reactor or other nuclear assembly or nuclear component thereof c) any weapon or device employing atomic or nuclear fission and/or fusion or other like reaction or radioactive force or matter d) i) war, invasion, act of foreign enemy, hostilities whether war be declared or not, civil war, rebellion, revolution, insurrection, military or usurped power ii) nationalisation, confiscation, requisition, seizure or destruction by any government or public authority. 10

11 General provision 1. Automatic Cover for Acquisitions a) The indemnity provided under this policy will apply in respect of any new or acquired company with an annual turnover not exceeding 1,000,000 for a period 90 days from the date of creation or acquisition pending provision of information and agreement on terms to be applied provided always that in the case of any new or acquired company whose business activities are substantially different from the business you will wherever possible notify us in advance of any such acquisition and in any event as soon as is reasonably possible. In respect of part B the indemnity provided under this provision includes all sums for which you become legally liable to pay as damages or compensation consequent upon Bodily Injury or damage to property arising out of any one occurrence during the period of insurance in respect of Products manufactured and or supplied prior to the date of acquisition. 11

12 General conditions 1. Arbitration Provided that liability for a Claim has been admitted any dispute as to the amount to be paid will be referred to an arbitrator who will be appointed by the parties in accordance with the statutory provisions in force at the time and the making of an award will be a condition precedent to any right of action against us. 2. Cancellation Not applicable to part A. We may cancel this policy by giving 30 days notice in writing by special delivery mail to you at your last known address and in such event you will be entitled to a return of premium in respect of the unexpired portion of the period of insurance. 3. Claims Procedures a) Your Responsibilities It is agreed that: i) on the happening of any Circumstance or on receiving verbal or written notice of any Claim you will: 1) as soon as reasonably possible give notice to us; and 2) as soon as reasonably possible forward to us any Claim, writ or summons issued against any Insured and any notice of prosecution, inquest or fatal inquiry; and 3) at your own expense and as soon as reasonably possible supply full details of the Claim in writing to us together with any evidence and information that may be reasonably required by us for the purpose of investigating or verifying the claim and keep us up to date with any future evidence and information received by you or reasonably required by us 4) in the case of notification of a Circumstance supply full particulars including all material facts, dates and persons involved and the reasons for anticipating that it is by definition a Circumstance ii) no settlement, admission of liability, payment or promise of payment will be made to a third party without our written consent. b) Our Rights We will: i) be entitled to conduct the defence or settlement of any Claim made against any Insured and they will give all assistance as may be reasonably required by us; and ii) be entitled to appoint legal counsel; and iii) be entitled to take the benefit of any rights of any Insured against any other party before or after any Insured has received indemnification under this policy and they will give all assistance as may be reasonably required by us; and iv) treat any circumstance notified during the period of insurance which subsequently gives rise to a Claim after the period of insurance as a Claim first made during the period of insurance. c) Prejudice Where in our opinion you have prejudiced the handling of or the settlement of any Claim the amount payable in respect of such Claim including Defence Costs will be reduced to such an amount as in our opinion would have been payable in the absence of such prejudice. 12

13 4. Contractual Right of Renewal (Tacit) If you pay the premium using our direct debit instalment scheme we will have the right which we may choose not to exercise to renew this policy each year and continue to collect premiums using this method. We may vary the terms and conditions of this policy including the premium at renewal. If you do not wish to renew this policy you or your insurance intermediary must notify us prior to the next renewal date. 5. Fraud Not applicable to part A If any claim is in any respect fraudulent or if any fraudulent means be used by any Insured or anyone acting on their behalf to obtain any benefit under this policy or if any loss, damage or injury be occasioned by their wilful act or with their connivance all benefit under this policy will be forfeited. 6. Non-Disclosure Not applicable to part A In the event of misrepresentation, misdescription or non-disclosure: a) of any material particular at the inception of this policy or from the time of any variation in cover including at renewal we may at our discretion waive our right to avoid this policy but exclude the consequences of any matter which ought to have been disclosed to us b) at the time of any variation in cover or at renewal we will waive our right to avoid this policy provided always that: i) you are able to establish to our satisfaction that such misrepresentation, misdescription or non-disclosure was innocent and free from any fraudulent conduct or intent to deceive ii) in respect of part C where you should have notified during a preceding period any Circumstance or Claim or an entitlement under this policy and the indemnity or cover to which you would have been entitled was in any way more restrictive than that provided at the date of notification we will only be liable to the extent applicable during such preceding period of insurance Provided always that: 1) we will be entitled to adjust the premium and the terms and conditions to those which would have applied had the circumstances of the misrepresentation, misdescription or non-disclosure been disclosed 2) for the purposes of this condition renewal will mean a renewal of any immediately preceding public and products liability and professional indemnity insurance policy or policies issued by us under which you were entitled to indemnity. 7. Observance The due observance and fulfilment of the terms and conditions of this policy by you in so far as they relate to anything to be done or complied with by you will be a condition precedent to our liability to make any payment under this policy. 8. Other Insurances If at the time of any occurrence giving rise to a Circumstance or Claim there is any other insurance effected by or on behalf of you providing an indemnity in respect of such Circumstance or Claim our liability will be limited to its rateable proportion. If any other insurance is subject to any provision whereby it is excluded from ranking concurrently with this policy in whole or in part or from contributing proportionally our liability under this policy will be limited to any excess beyond the amount which would be payable under such other insurance had this policy not been effected. 13

14 9. Payment by Instalments Reference to the payment of premium includes payment by monthly instalments. If you pay by this method this policy remains an annual contract and the date of the payment and the amount of instalments are governed by the terms of the credit agreement. If an instalment is not received by the due date then subject to the Consumer Credit Act 1974 if applicable the credit agreement and this policy will be cancelled immediately. 10. Premium Adjustment If any part of the premium is calculated on estimates supplied by you an accurate record will be kept by you containing all information relative thereto and you will allow us to inspect such record. You will within one month from the expiry of each period of insurance supply to us such particulars and information as we may require. The premium for such period will thereupon be adjusted and the difference paid by or allowed to you as the case may be subject always to the minimum premium stipulated. 11. Reasonable Care Not applicable to part C. You will comply with all regulations imposed by any competent authority and take all reasonable precautions to prevent or minimise accident, injury, damage or claims being made against you. 12. Sanctions Notwithstanding any other terms of this policy we will be deemed not to provide cover nor will we make any payment or provide any service or benefit to you or any other party to the extent that such cover, payment, service, benefit and/or any business or activity of yours would violate any applicable trade or economic sanctions law or regulation. 14

15 Part A employers liability Section 1 Special Definitions Bodily Injury Death or any bodily or mental injury or disease. Costs and Expenses a) Claimants costs and expenses b) costs incurred with our written consent in defending any claim for damages c) costs incurred with our written consent for: i) representation at any coroner s inquest or fatal injury inquiry ii) defending in any court of summary jurisdiction any proceedings in respect of any act or omission relating to any event which may be the subject of indemnity under this part. Section 2 The Cover We will indemnify you in respect of all sums which you may become legally liable to pay as damages in respect of Bodily Injury caused during the period of insurance to any employee, director or officer arising out of and in the course of their employment by you in the business. In addition to any claim for damages we will pay Costs and Expenses. 2.1 Corporate Manslaughter and Corporate Homicide Act 2007 We will also indemnify you in respect of legal costs and expenses incurred with our prior written consent in connection with the defence of any criminal proceedings (including any appeal against conviction arising from any such proceedings) brought in respect of a charge and or investigations connected with a charge of corporate manslaughter or corporate homicide under the Corporate Manslaughter and Corporate Homicide Act 2007 or any equivalent legislation in the Isle of Man or the Channel Islands committed or alleged to have been committed during the period of insurance in the course of the business. Provided always that: a) our liability under this clause will not exceed 5,000,000 in any one period of insurance. This limit will form part of and not be in addition to the limit of indemnity stated in the schedule b) this clause will only apply to proceedings brought within the territorial limits c) we must consent in writing to the appointment of any solicitor or counsel who are to act for and on behalf of you d) you will give us immediate notice of any summons or other process served upon you which may give rise to proceedings under this clause e) in relation to any appeal counsel has advised there are strong prospects of such appeal succeeding 15

16 f) we will be under no liability: i) where you have committed any deliberate or intentional criminal act giving rise to a corporate manslaughter or corporate homicide charge ii) in respect of fines or penalties of any kind iii) in respect of the defence of any criminal proceedings brought or in an appeal against conviction rising from such proceedings in respect of breach of the Health and Safety at Work Act 1974 or the Health and Safety at Work Act (Northern Ireland) Order 1978 or any regulations made thereunder iv) where indemnity for defence costs is available from any other source or is provided by any other insurance or where but for the existence of this clause indemnity would have been provided by such other source or insurance g) where we have already indemnified you in respect of legal costs and expenses incurred in the defence of any criminal proceedings arising out of the same cause or occurrence which gave rise to the charge of and or investigation connected with corporate manslaughter or corporate homicide under another part of this policy the amount paid under that part will be taken into account in arriving at our liability payable under this clause. 2.2 Court Attendance Costs We will pay you the daily rates stated below if any of these people are required to attend court as a witness at our request: a) any director, officer, business partner or member 500 b) any employee or volunteer Health and Safety at Work Defence Costs We will also indemnify you and at your request any director, officer, business partner, member, employee or volunteer against: a) costs and expenses incurred with our prior consent b) costs awarded against you or such director, officer, business partner, member, employee or volunteer in the defence of any criminal proceedings arising from an alleged breach of the Health and Safety at Work etc. Act 1974 or the Health and Safety at Work (Northern Ireland) Order 1978 occurring during the period of insurance in the course of the business including any appeal against conviction arising from such proceedings. Provided always that this will not apply to: i) fines or penalties of any kind ii) costs in respect of which you or any director, officer, business partner, member, employee or volunteer has effected a more specific legal expenses protection or insurance iii) proceedings or appeals consequent upon any deliberate act or omission and you will immediately repay us all costs and expenses paid by us prior to any deliberate act or omission being established iv) proceedings not related to the health, safety or welfare of an employee, director or officer. 16

17 2.4 Indemnity to Other Persons including Personal Representatives We will also indemnify at your request: a) any director, officer, business partner or member b) any employee or volunteer c) any public or local authority or other principal for whom you are or have been carrying out work but only to the extent required under the contract for the work d) any employee, director or officer acting as a member of your first aid or medical arrangements but excluding medical practitioners in respect of liability for damages and legal costs to any other employee resulting from treatment given in connection with any Bodily Injury caused to such person and arising out of and in the course of the employment of such person by you e) any officer or member of your catering, social, sports or welfare organisations f) any personal representative of yours in the event of your death. Provided always that: i) such person is not entitled to indemnity under any other insurance; and ii) such person will as though they were you observe, fulfil and be subject to the terms and conditions of this policy; and iii) we will not be liable unless we have the sole conduct and control of all claims. 2.5 Mitigation of Damage to Reputation In the event of a claim or series of claims arising out of one incident for which you would be entitled to receive indemnity under this part we will also indemnify you for reasonable costs incurred by you with our prior written consent to mitigate resultant damage to your reputation. Provided always that: a) the damage to your reputation is a direct consequence of media coverage in print or by radio or television or news agency b) the value of the claim or series of claims arising out of one incident which results in damage to your reputation occurring at any time held by us will be 1,000,000 or above c) our liability under this clause will not exceed the inner limit of indemnity stated in the schedule in any one period of insurance. This limit will be in addition to the limit of indemnity stated in the schedule d) we will not be liable under this clause unless we have sole conduct and control of the claim or series of claims arising out of one incident which results in damage to your reputation occurring. 17

18 2.6 Unsatisfied Court Judgments If any employee, director or officer or their personal representative obtains a judgment from a court within the territorial limits for damages for Bodily Injury against any company or individual operating from premises within the territorial limits and that judgment remains unpaid for more than 6 months after the date of the award we will pay at your request the amount of any unpaid damages and awarded costs to the employee, director or officer or their personal representative. Provided always that: a) the Bodily Injury: i) is caused during the period of insurance ii) arises out of and in the course of employment in the business b) there is no appeal outstanding. If a payment is made the employee, director or officer or their personal representative will assign the judgment to us. Section 3 Special Exclusions This part does not cover: 1. Motor liability for which compulsory motor insurance or security is required under road traffic legislation 2. Work Offshore liability for Bodily Injury caused: a) on any offshore installation or support or accommodation vessel for any offshore installation b) in transit to from or between any offshore installation or support or accommodation vessel for any offshore installation 3. Work Overseas liability in respect of any Bodily Injury caused outside the territorial limits but this exclusion will not apply to any employee, director or officer normally resident in the territorial limits temporarily employed elsewhere in connection with your business provided always that the contract of service or apprenticeship was entered into within the territorial limits. Section 4 Special Provisions 1. Limit of Indemnity Our liability will not exceed the sum stated in the schedule including all costs and expenses (other than any limit otherwise stated) and any limit applies to any claim or series of claims arising from any one cause. 2. Limit of Indemnity - Terrorism The limit of indemnity in respect of any claim or series of claims arising directly or indirectly from terrorism is 5,000,

19 Part B public and products liability Section 1 Special Definitions Bodily Injury a) Death, injury, disease or illness b) mental injury or mental anguish and shock that results in a recognisable psychiatric injury but this will not apply to or include any liability, loss, cost or expense directly or indirectly caused by fear of contracting a disease or illness. Costs and Expenses a) Claimants costs and expenses b) costs incurred with our written consent in defending any claim for damages c) costs incurred with our written consent for: i) representation at any coroner s inquest or fatal injury inquiry ii) defending in any court of summary jurisdiction any proceedings in respect of any act or omission relating to any event which may be the subject of indemnity under this part. Enforcing Authority Any government or statutory authority or body implementing or enforcing environmental protection legislation within the territorial limits. Fungal Pathogens Any fungus or mycota or any by-product or type of infestation produced by such fungus or mycota including but not limited to mould, mildew, mycotoxins, spores or any biogenic aerosols. Geographical Limits For the purposes of Section 2: a) the territorial limits b) i) anywhere in the world in respect of non-manual work ii) anywhere in the world other than the United States of America, Canada and any territory under their jurisdiction in respect of manual work carried out during temporary visits by you or any director, officer, business partner, member, employee or volunteer normally resident in and travelling from the territorial limits. For the purposes of Section 3: anywhere in the world in respect of Products supplied in or from the territorial limits. Malicious Product Tampering Any actual, alleged or threatened, intentional, malicious and wrongful alteration of Products by any person including any employee so as to render the Product unfit or dangerous for its intended use or to create such impression to the public. Pollution or Contamination a) Pollution or contamination of buildings or other structures or of water, land or the atmosphere; and b) loss or damage or Bodily Injury directly or indirectly caused by such pollution or contamination. 19

20 Product Recall Costs and Expenses Reasonable and necessary costs incurred by you to withdraw or destroy recalled Products including but not limited to: a) notification to known owners of the Product or public notification to unknown owners of the Product b) transportation including packaging of the Product from the owner to you or to the nearest suitable place (including but not restricted to dealers, wholesalers, retailers or other workshops) where the defects in the Product can be repaired or the Product can be replaced c) return of the repaired or replaced Product including packaging to the owner d) the expenses of: i) transportation, accommodation and board incurred by any employee or a duly instructed third party ii) the temporary hiring of additional personnel by you or a duly instructed third party directly arising from the recall should it prove expedient on cost grounds to repair the defect or replace the Product on the premises of the business or owner instead of recovering or recalling the Product to the nearest suitable place e) overtime paid to any employee for work devoted exclusively to the recall of the Product f) expense of renting or hiring additional warehouse or storage space for the recall of the Product for a maximum period of 12 months g) the destruction of the Product instead of its recovery or recall to the nearest suitable place: i) where necessary because of legal requirements ii) where ordered by authorised regulatory body or other competent authority iii) where expedient on cost grounds h) the examination of those Products (including the cost of transportation to the nearest suitable place) that it can be proven belong to a batch affected by defects. Provided always that: i) such checking is found to be expedient on cost grounds; and ii) that the costs incurred as a result thereof do not exceed the value of the goods. The checking can be done by you or by an appointed third party. Where checking is carried out by you this subclause will cover your own costs i) legal costs and expenses incurred relating to the affected Products. Products Goods or anything including packaging, containers, labels and instructions sold, supplied, hired out, constructed, erected, installed, treated, repaired, serviced, processed, stored, handled, transported or disposed of by you or on your behalf in the business. Remediation Remedying the effects of Pollution or Contamination including primary, complementary and compensatory actions as specified in the Environmental Damage (Prevention and Remediation) Regulations

21 Section 2 Public Liability The Cover We will indemnify you in respect of all sums which you may become legally liable to pay as damages in respect of: a) accidental Bodily Injury to any person other than an employee b) accidental damage to property c) accidental obstruction, accidental trespass, accidental nuisance, accidental interference with pedestrian, road, rail, air or waterborne traffic, accidental invasion of the right of privacy or accidental interference with any right of air, light, water or way d) wrongful arrest or false imprisonment occurring during the period of insurance within the Geographical Limits in the business. In addition to the limit of indemnity we will pay Costs and Expenses. 2.1 Advertising Liability We will also indemnify you in respect of all sums which you become legally liable to pay as damages arising in connection with the business during the period of insurance for: a) libel, slander or defamation b) infringement of copyright, title or slogan c) piracy or unfair competition or idea misappropriation under any implied contract d) any invasion of the rights of privacy committed or alleged to have been committed in any advertising, publicity article, broadcast or telecast and arising out of your advertising activities. Provided always that we will not be liable for any liability arising from: a) the failure of performance of a contract but this exception does not apply to the unauthorised appropriation of ideas based upon breach of or alleged breach of an implied contract b) infringement of trademark, service mark or trade name other than titles or slogans by use thereof in connection with Products or services sold, offered for sale or advertised c) incorrect description or mistake in the advertised price of Products or services sold, offered for sale or advertised d) the failure of Products or services to conform with advertised quality or performance e) an offence committed by you where your business is principally advertising, broadcast publishing or telecasting. 21

22 2.2 Contingent Motor Liability We will also indemnify you in respect of your legal liability for accidental Bodily Injury to any person or accidental damage to property arising out of the use of any motor vehicle not the property of nor provided by you and being used in the business. Provided always that we will not be liable: a) in respect of damage to such vehicle or to goods conveyed therein or thereon b) for accidental Bodily Injury to any person or accidental damage to property arising while such vehicle is being driven by you or by any person who to your 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 c) in respect of liability more specifically insured under any other insurance d) in respect of liability arising outside the territorial limits. 2.3 Data Protection Act We will also indemnify you in respect of your legal liability under Section 13 of the Data Protection Act 1998 in connection with personal data as defined in the said Act held by you. Provided always that we will not be liable for: a) the payment of fines and penalties b) the cost of replacing, reinstating, rectifying or erasing any personal data. 2.4 Defective Premises Act 1972 We will also indemnify you in respect of your legal liability under Section 3 of the Defective Premises Act 1972 or Section 5 of the Defective Premises (Northern Ireland) Order 1975 in connection with premises which have been disposed of by you. Provided always that we will not be liable: a) for the cost of remedying any defect or alleged defect in the said premises b) in respect of liability more specifically insured under any other insurance. 2.5 Personal Liability At your request this section will apply to the personal liability of any: a) director, officer, business partner, member, employee or volunteer or any member of the family of such director, officer, business partner, member, employee or volunteer in connection with the business b) member of sports and social clubs operating in the business whilst engaged in club activities. Provided always that: i) this will not apply to liability more specifically insured under any other insurance; and ii) any person indemnified will as though they were you fulfil and be subject to the terms and conditions of this section; and iii) we will not be liable unless we have the sole conduct and control of all claims. 22

23 Exclusions to Section 2 This section does not cover: 1. Motor liability arising from the ownership or possession or use by you or on your behalf of any mechanically propelled motor vehicle or mobile plant: a) which is licensed for road use b) for which compulsory motor insurance or security is required c) which is more specifically insured. Provided always that this exclusion will not apply in respect of: i) liability not more specifically insured under any other policy arising during the act of loading or unloading any mechanically propelled motor vehicle or mobile plant or the bringing to or the taking away of a load from such vehicle or plant ii) the use of any mechanically propelled motor vehicle or mobile plant solely as a tool of trade unless more specifically insured or unless compulsory motor insurance or security is required iii) the unauthorised movement on your premises or contract site of any mechanically propelled motor vehicle or mobile plant unless more specifically insured or unless compulsory motor insurance or security is required 2. Products liability arising from Products after they have ceased to be in your custody or control other than food or beverages for consumption at your premises or at any other premises where you are carrying on the business 3. Property Being Worked on damage to that part of any property upon which you or any servant or agent of yours is or has been working where the damage is the direct result of such work 4. Property Damage Excess the first 250 of damages payable for damage to property in respect of any one occurrence or all occurrences of a series arising out of one original cause provided always that you will indemnify us in respect of any such amount for which we have made a payment 5. Property Held in Trust damage to property belonging to you or held in trust by or borrowed, rented, leased or hired for use by you but this exclusion will not apply to: a) the personal effects including motor vehicles or their contents of any director, officer, business partner, member, employee, volunteer or visitor b) buildings or their contents temporarily occupied by you for the purpose of carrying out work therein or thereon c) premises or their fixtures and fittings hired, rented, leased or lent to you other than such damage if liability is assumed by you under a tenancy or other agreement and would not have attached in the absence of such agreement 6. Vessels and Craft liability arising from the ownership or possession or use by or on your behalf of craft designed to travel through air or space, hovercraft or watercraft other than waterborne vessels not exceeding 10 metres in length used on inland waterways. 23

24 Condition to Section 2 1. Use of Heat It is a condition precedent to our liability under this section that the following precautions are complied with on each occasion of the use or application of heat as defined below by or on your behalf taking place other than on your own premises. Application of heat by means of electric oxyacetylene or other welding or cutting equipment or angle grinders, blow lamps, blow torches, hot air guns or hot air strippers. 1. The area in the immediate vicinity of the work including in the case of work carried out on one side of a wall or partition the opposite side of the wall or partition must be cleared of all loose combustible material. Other combustible material must be covered by sand or over-lapping sheets or screens of non-combustible material. 2. At least 2 adequate and appropriate portable fire extinguishers in proper working order must be kept in the immediate area of the work being undertaken and used immediately smoke or smouldering or flames are detected. 3. A fire safety check of the working area must be made approximately 60 minutes after the completion of each period of work and immediate steps taken to extinguish any smouldering or flames discovered. 4. Blow lamps and blow torches must be filled in the open and must not be lit until immediately before use and must be extinguished immediately after use. 5. A person must be appointed by you to act as an observer to watch for signs of smoke or smouldering or flames. Sub-paragraph 5 does not apply to the application of heat by means of blow lamps, blow torches, hot air guns or hot air strippers. Use of asphalt, bitumen, tar, pitch or lead heaters. The heating must be carried out in the open in a vessel designed for the purpose and if carried out on a roof the vessel must be placed on a non-combustible heat insulating base. Section 3 Products Liability The Cover We will indemnify you in respect of all sums which you may become legally liable to pay as damages in respect of: a) accidental Bodily Injury to any person other than an employee b) accidental damage to property occurring during the period of insurance within the Geographical Limits and caused by Products. In addition to the limit of indemnity we will pay Costs and Expenses. It is agreed that in respect of Products which are exported to the United States of America or Canada the limit of indemnity stated in the schedule will be inclusive of all legal costs awarded to any claimant or incurred in the defence of any claim that is contested by or with our consent. 24

25 3.1 Products Recall We will also indemnify you in respect of Product Recall Costs and Expenses incurred with our prior written consent arising from the recall of Products sold or supplied during the period of insurance whose ownership has passed to third parties and where the recall is: a) necessary in order to avoid: i) accidental Bodily Injury to any person other than an employee ii) accidental damage to property b) ordered by authorised regulatory body or other competent authority c) as a result of Malicious Product Tampering and notified to us during or within 30 days of expiry of the period of insurance. Provided always that: a) our liability under this clause will not exceed the inner limit of indemnity stated in the schedule in any one period of insurance and this limit will be in addition to the limit of indemnity stated in the schedule b) in respect of any claims for which indemnity is provided by this clause you will pay the first 10,000 of each and every claim. You will indemnify us in respect of any such amounts for which we have made a payment c) we must consent in writing to the appointment of any solicitor or counsel who are to act for and on your behalf d) all the terms, conditions, limitations and exclusions of this part will apply except where they have been varied by the terms of this clause e) we will be under no liability under this clause: i) in respect of fines or penalties of any kind ii) where you have assumed liability in a contract or agreement other than liability for damages that you would have had in the absence of the contract or agreement iii) for a recall due to the failure to observe legal requirement iv) for a recall due to prototypes or test Products v) for costs associated with the expense to design, redesign, engineer, re-engineer, recalibrate or retool any Product vi) in respect of any matter of which you or any employee, officer or director of yours had actual or constructive knowledge prior to the inception of this clause vii) in respect of Products supplied prior to the inception of this clause viii) in respect of Products exported to the United States of America or Canada f) on becoming aware of any circumstance where a Product recall may be necessary you will: i) notify us as soon as reasonably possible (to report a claim or potential claim under this clause please contact us on Our claims service is available 24 hours a day, 7 days a week) ii) provide us with every assistance in investigating the cause, extent and implications of the recall iii) make arrangements for the organisation of the recall and will ensure that the affected Products are identified. 25

26 Exclusions to Section 3 This section does not cover: 1. Aircraft Products liability arising from Products which at the time of the contract of sale or supply are knowingly sold or supplied for use in craft designed to travel through air or space 2. Products in Your Custody liability arising from Products in your custody or control 3. Replacing or Rectifying Products replacing, reinstating, rectifying, recalling or guaranteeing the performance of Products other than as provided for under clause United States of America or Canada Exports in respect of Products exported to the United States of America or Canada: a) any liability, loss, cost or expense directly or indirectly caused by, contributed to by or arising out of any asbestos, asbestos fibres or any derivatives of asbestos including any product containing any asbestos, asbestos fibres or derivatives b) all loss, cost or expense directly or indirectly arising out of, resulting from or in any manner related to Fungal Pathogens whether or not there is another cause of loss which may have contributed concurrently or in any sequence to a loss c) all liability in respect of Pollution or Contamination d) any financial loss, cost or expense arising from a request, demand or order that you undertake Clean-up work or any claim or legal action for compensation by or on behalf of any governmental authority or others who undertake Clean-up work. For the purposes of this exclusion Clean-up will mean: testing for, monitoring, cleaning-up, removing, containing, treating, detoxifying or neutralising Pollution or Contamination e) any liability in respect of disease, illness or other medical conditions arising from exposure to silicon or substances containing silicon or silica. Section 4 General Extensions The insurance under this part includes the following extensions. Provided always that: a) these extensions are subject to the terms and conditions of this policy in so far as they can apply b) our total liability to pay compensation will not exceed the limit of indemnity. 4.1 Corporate Manslaughter and Corporate Homicide Act 2007 We will also indemnify you in respect of legal costs and expenses incurred with our prior written consent in connection with the defence of any criminal proceedings (including any appeal against conviction arising from any such proceedings) brought in respect of a charge and or investigations connected with a charge of corporate manslaughter or corporate homicide under the Corporate Manslaughter and Corporate Homicide Act 2007 or any equivalent legislation in the Isle of Man or the Channel Islands committed or alleged to have been committed during the period of insurance in the course of the business. 26