Policy Documentation

Transcription

1 Policy Documentation

2 Important Information Welcome to AIG Europe Limited On 3 December 2012 we changed our company name from Chartis Europe Limited to AIG Europe Limited. This change of name does not impact your insurance cover or your ability to claim. The name change does not impact either our regional or country operational management structure - the same teams continue to provide you with expert underwriting and claims handling service, as they did before. Our policyholders in the UK will continue to enjoy the security of being insured by a financially strong FSA regulated company. We believe that by going to market under one powerful brand with AIG s long history of success around the world, we will have greater marketplace impact and become a much stronger franchise. As a result we will be able to provide even more value to you. We look forward to continuing to insure you under our new name. AIG Europe Limited is authorised and regulated by the Financial Services Authority (FSA number ). This information can be checked by visiting the FSA website ( Registered in England: company number Registered address: The AIG Building, 58 Fenchurch Street, London, EC3M 4AB.

3 SUMMARY OF COVER Comprehensive Liability AIG Europe Limited 05/09v1 Comprehensive Energy Liability Policy provides cover for the traditional liability classes of business, as well as a range of additional covers and services. This is a summary of the policy and does not contain the full terms and conditions of the cover, which are found in the policy document. It is important that you read the policy document carefully when you receive it. You should discuss with your insurance broker whether this cover is appropriate for your needs. EMPLOYERS LIABILITY ACCEL ELITE Employers Liability Legal costs and expenses provided on an in addition basis No radioactive contamination restriction Medical and Vocational Rehabilitation at no extra premium cost RoSPA Accredited Health and Safety Training A complimentary online health and safety compliance self management system Modular web-based H&S compliance support system accredited by RoSPA Employment Related Accident Benefits Immediate personal accident payments for workplace injuries suffered by employees No liability trigger PUBLIC/PRODUCT LIABILITY Wide Policy Cover: Automatically covering: Legionella Advertising liability Blanket vendors liability Member to member liability ADDITIONAL COVERS AND SERVICES TUPE as standard Health and Safety loss Control Rapid 24 hour 365 day incident reporting Reportline facility Absence management services Complimentary training places for the insured s employees Serves to enhance Health & Safety awareness and proficiency Payable to employer (insured) for use as they see fit Complimentary cover Legal costs and expenses provided on an in addition basis (excluding USA/Canada) Advice design service & specification cover provided if resulted in injury or damage Product Recall: Covering costs of a recall, defence costs and associated consultant costs in the event of any: Governmental recall Malicious product tampering Product defect Crisis Containment: Covering costs of specialist communications consultants to handle a crisis. A crisis is an event that: Causes a material interruption to the business Has potential to cause adverse publicity Has potential to cause a financial loss Environmental Clean Up Costs: Pollution cover in respect of legal liability for clean up costs compensation In respect of 3 rd parties (subject to trade Required by environmental laws and any government exclusions for full list refer to the policy) or statutory body PLEASE REFER TO YOUR QUOTATION DOCUMENT TO ESTABLISH WHICH COVERS APPLY This insurance is underwritten by AIG Europe Limited which is authorised and regulated by the Financial Services Authority (FSA number ). AIG Europe Limited is a member of the Association of British Insurers. Registered in England: company number Registered address: The AIG Building, 58 Fenchurch Street, London, EC3M 4AB.

4 bility Policy Guide & Contents On receipt of this Policy document please read it carefully. If it does not meet your requirements or you do not understand any part of this Policy please contact your insurance broker or adviser as soon as possible. This Policy consists of the following: Page 1 Page 2 Page 4 Page 5 Page 6 Welcome to AIG Europe Limited - This explains who we are, what we do and where we have offices in the United Kingdom Notification of Claims - Here you will find contact telephone numbers should you need to speak to or contact us Policy Schedule - This includes your details, your business activities, the Policy Number, the period of this insurance and the premium. Importantly this tells you which Sections of this Policy you are covered for Limits Schedule - This sets out the Limit of Indemnity or sum insured we cover you for under each Section of this Policy together with the level of Deductible or Co-insurance applicable General Definitions - This gives meaning to words used in Italics in this Policy Page 11 General Conditions & Provisions - These set out your obligations and rights under this Policy Page 14 Claims Conditions & Procedures - These detail the procedures required when you make a claim Page 16 General Exclusions - These detail precisely what you are not covered for in certain Sections of this Policy Page 17 Coverage Sections - These detail precisely what cover is provided, what is excluded in addition to the General Exclusions, what extensions are provided, and any additional provisions or definitions specific to each Section Section 1 Employers Liability Section 2 Public & Products Liability Section 3 Product Recall Section 4 Employment Related Accident Benefits Section 5 Crisis Containment Section 6 Clean-Up Costs Note: Please check your Policy Schedule to see which Sections you are covered for. Page 38 Disputes and Complaints - Here you will find the procedure to follow if you have a dispute or complaint Page 39 Endorsements - This sets out any specific amendments to your cover which are made via Endorsement AIG Europe Limited, The AIG Building, 58 Fenchurch Street, London EC3M 4AB This insurance is underwritten by AIG Europe Limited which is authorised and regulated by the Financial Services Authority (FSA number ). AIG Europe Limited is a member of the Association of British Insurers. Registered in England: company number Registered address: The AIG Building, 58 Fenchurch Street, London, EC3M 4AB. 05/09v1 Comprehensive Energy Liability Policy Index

5 Welcome to AIG Europe Limited We are delighted that you have chosen us to provide you with this Comprehensive Liability insurance policy. AIG Europe Limited is one of the UK's largest general insurance companies. With offices throughout the country, we provide innovative products and services to more than half the country's top 1000 companies as well as many public and private sector organisations and millions of individuals. We are part of Chartis Inc., a world leading property-casualty and general insurance organisation with a 90-year history, serving more than 40 million clients in over 160 countries and jurisdictions. AIG offers an extensive range of products and services, deep claims expertise and excellent financial strength We have been operating in the UK for over 50 years and we are one of the largest companies specialising in the UK business insurance market. Based in London and with offices in Glasgow, Belfast, Leeds, Manchester, Newcastle, Birmingham, Bristol, Reading, Chelmsford and Croydon. Our programme of innovation and extensive underwriting experience underpins our ability to provide genuinely differentiated products that meet the needs of UK brokers and clients We continually develop new products and offer a wide variety of tailored products that answer the ever-changing needs of modern businesses Comprehensive Liability Our comprehensive liability Policy not only provides cover for the traditional liability classes of business, but has been adapted to meet with the needs of the modern business environment. For most Insureds, it now incorporates the following coverages as standard: Product recall coverage Employment related accident benefit Pollution clean-up cost insurance Crisis containment coverage Please check your Policy Schedule to see if your Policy includes these coverages. In addition the following features are included: Human Focus our on-line Health and Safety management system. Reportline our dedicated 24/7 claim or incident notification service for Employers, Public and Product Liability losses. Human Focus Human Focus is a complimentary online health and safety compliance self management system offered to all of our corporate customers. The e-system assists you with the management of your programme and features: Online competency training comprising key skills, topics and required knowledge. Web based risk assessment. Sharing of risk management information. All information is recorded and accessible by you for the duration of this Policy. In order to access your user account, activate the link Selecting Register here takes first time users to a registration page, where completion will trigger a request for confirmation of your Policy Number. 05/09v1 Comprehensive Energy Liability Policy Page 1

6 Notification of Claims The claims operation that underpins every AIG Europe Limited insurance Policy is one of our greatest strengths. We pride ourselves on the skills and expertise of our claims team and their approach to the development and delivery of claims services which is both transparent and solution driven. Full claim notification procedures are contained within the Policy wording, but for ease of reference our dedicated Claims telephone lines are as follows: Reportline This is our dedicated 24/7 claim and incident notification service for all Employers, Public or Products Liability claims; in the event of any such incident, please notify us immediately by telephoning: Reportline on Or Casualty Claims on / Product Recall & Crisis Containment To receive assistance following an incident, contact our Crisis Consultants by telephoning the Crisis Centre Hotline from any where in the world on All Other Incidents Please telephone our United Kingdom claims department on for assistance, or alternatively details to us using the claim advice on the following web-link aig.co.uk/2009/euk10107/euk10107_contact.html 05/09v1 Comprehensive Energy Liability Policy Page 2

7 Comprehensive Energy Liability Policy This Policy, Policy Schedule, Limits Schedule and any Endorsements should be read as if they were one document. This Policy is a contract between the Insured and the Insurer. The Insurer will provide indemnity to the Insured under those Sections shown in the Policy Schedule as being covered during any Period of Insurance for which the Insured have paid the Premium. This Policy shall not be in force unless it has been signed by the Insurer. SIGNED FOR AND ON BEHALF OF AIG EUROPE LIMITED DATE: 17 April 2013 AIG Europe Limited This insurance is underwritten by AIG Europe Limited which is authorised and regulated by the Financial Services Authority (FSA number ). AIG Europe Limited is a member of the Association of British Insurers. Registered in England: company number Registered address: The AIG Building, 58 Fenchurch Street, London, EC3M 4AB. 05/09v1 Comprehensive Energy Liability Policy Page 3

8 Policy Schedule These are your Policy details. You will need to quote your Policy Number when speaking to your broker, advisor or when contacting us. Policy Number: Insured: Northern Ireland Assembly and Northern Ireland Assembly Commission Insured s Address: Parliament Buildings Stormont Belfast BT4 Insured s Business: Parliamentary and Constituency activities related to and consequent upon Membership of the Northern Ireland Assembly but excluding activities directly relating to the promotion or membership of any Political Party and Property Owners Period of Insurance: From 01 April 2013 to 31 March 2014 (Both Days Inclusive) Sections for which the Insured is covered by this Policy: Section 1 Employers Liability Section 2 Public & Products Liability Section 3 Product Recall Section 4 Employment Related Accident Benefits Section 5 Crisis Containment Section 6 Clean-Up Costs Premium: Deposit Premium: GBP 33, Minimum Premium: GBP 33, IPT: (at 6.00%) GBP 2, Total: GBP 35, Premium is adjustable in accordance with General Condition & Provision 7 05/09v1 Comprehensive Energy Liability Policy Page 4

9 Limits Schedule This sets out the amount for which the Insurer will cover the Insured under each Section of this Policy during the Period of Insurance. Section 1: Employers Liability: Limits of Indemnity other than Legal Costs and Legal Expenses Legal Costs Legal Expenses (Extension 6) Section 2: Public & Products Liability: Limit of Indemnity Legal Costs and Legal Expenses Deductibles As per Endorsement Number 1 Section 3: Product Recall: (a) Not Covered for any one claim or number of claims arising out of one event from Offshore Activity (b) GBP 10,000,000 any one claim or number of claims arising out of one event other than arising from Offshore Activity are payable in addition to the Limit of Indemnity above; and are unlimited, save for Legal Costs and legal expenses payable under Extension 6 are limited to GBP 5,000,000 in the aggregate for any one Period of Insurance GBP 5,000,000 any one Occurrence or all Occurrences of a series consequent upon or attributable to one source or original cause but in respect of liability arising from Products in the aggregate any one Period of Insurance are payable in addition to the Limit of Indemnity and are unlimited, but (a) in respect of Legal Costs and legal expenses arising in respect of the Corporate Manslaughter and Corporate Homicide Act 2007 only such Legal Costs and legal expenses will be limited to GBP 5,000,000 for any one Period of Insurance and (b) are inclusive in the Limit of Indemnity in respect of USA its territories and possessions and Canada Limit of Indemnity Co-Insurance GBP 50,000 any one Product Recall and in the aggregate for any one Period of Insurance This Section is subject to a Co-Insurance of 10% per Product Recall with a minimum of GBP 0 Section 4: Employment Related Accident Benefits: Please refer to the Schedule of Benefits detailed within Section 4. Section 5: Crisis Containment: Limit of Indemnity Co-Insurance Section 6: Clean-Up Costs: GBP 100,000 per Crisis and in the aggregate for any one Period of Insurance This Section is subject to a Co-Insurance of 20% per Crisis Limit of Indemnity Deductible GBP 1,000,000 per incident and in the aggregate, including Legal Costs, for any one Period of Insurance This Limit of Indemnity is subject to a Deductible of either GBP 5,000 per incident or the Deductible applicable under Section 2 (Public & Products Liability) whichever is the higher 05/09v1 Comprehensive Energy Liability Policy Page 5

10 General Definitions The following words and expressions in italics in this Policy have the following meaning. There are additional definitions under Section 4 applicable solely to that Section. Adjustment Formula means the formula agreed by the Insurer and the Insured for adjusting the Premium. Bodily Injury means death, disease, illness, physical and mental injury, mental anguish or nervous shock. Business means the Insured s business as described in the Policy Schedule including: a) premises used by the Insured including their repair, maintenance and refurbishment; b) facilities provided for the benefit of Employees or their immediate family members; c) emergency services or security services in respect of the Insured s business; d) private work by an Employee for the Insured s directors, partners or senior Employees; e) participation in exhibitions or conferences in relation to the Insured s business; f) sponsorship of sporting, charity, literary and theatrical events and competitions; g) repair and maintenance of the Insured s Motor Vehicles; and h) former activities as declared to and agreed by the Insurer. Clean-Up Costs means the reasonable and necessary expenses for the investigation, removal, remediation including, but not limited to, associated monitoring or disposal of soil surface-water, ground-water or other contamination in, on or under property that is neither owned by, or in the care, custody or control of, the Insured to the extent required by Environmental Laws or that have actually been incurred by any governmental or statutory body or agency or by third parties. Clean-Up Costs also include Restoration Costs. Co-Insurance means the percentage of a claim under this Policy made by the Insured as detailed in the Limits Schedule which is not covered by the Insurer. Crisis means any decisive, unstable or crucial time in the Insured s affairs or Business which results from an Occurrence which in the Insured s reasonable opinion, if left unmanaged, could give rise to a claim under this Policy; and a) directly causes disruption to the Insured s normal operations and requires the full time involvement of all of the Insured s directors and is likely to have a significant negative impact on the Insured s revenue or net worth; or b) has the potential to cause; i) a decrease of greater than 10% in the value of the Insured s share holding within a 48 hour period; or ii) a 20% negative impact on the Insured s revenue over a twelve month period; or c) results in materially negative media reporting which has the potential to directly cause disruption to the Insured s normal operations and requires the full time involvement of all of the Insured s directors and is likely to have a significant negative impact on the Insured s revenue or net worth. Crisis Consultant means the independent consultant approved by the Insurer for use in connection with a Crisis. Crisis Coverage Period means the period commencing when the Crisis is first reported to the Insurer and ending 30 days thereafter. Deductible means the amount of a claim for which the Insured is not covered by the Insurer as detailed in the Limits Schedule and which reduces the Limit of Indemnity. 05/09v1 Comprehensive Energy Liability Policy Page 6

11 Employee means whilst working for the Insured a) any person under a contract of employment or apprenticeship with the Insured b) any of the following persons whilst working for the Insured in connection with the Business i) labour masters, labour only sub-contractors and persons supplied by them; ii) self-employed, voluntary or home workers; iii) persons hired/borrowed by or to the Insured as an employee including drivers or operators of plant; iv) persons undertaking work experience; v) persons on secondment; vi) persons working under the Community Service by Offenders (Scotland) Act 1978 or similar; vii) prospective employees who are being assessed by the Insured; viii) any person deemed to be an employee by a court of law in the United Kingdom; or ix) former employees re-hired on an internal consultancy basis. Endorsement means an attachment to this Policy agreed by the Insurer in writing that amends the terms of the Policy. Environmental Laws mean any statute, statutory instrument, by-law, regulation, guidance or standard having the force of law or any notice, ruling, judgment, order or instruction of any governmental or statutory body or agency or court within the European Economic Area concerning health and safety or environmental matters that are applicable to Pollution Conditions. General Exclusions means circumstances not covered under this Policy detailed at page [16] of this Policy. Governmental Recall means a) an official order issued by government or authorised body requiring a Product Recall; or b) where all government or regulatory recall criteria have been satisfied and an order requiring Product Recall is imminent. Insurer means AIG Europe Limited. Insured means the party detailed in the Policy Schedule. Legal Costs means all costs and expenses, excluding Product Recall Costs; a) incurred by the Insured with the Insurer's written consent; or b) recoverable by any claimant from the Insured in relation to the investigation, adjustment, appraisal, defence and appeal or settlement of any claim arising under this Policy or any Occurrence which may be covered under the relevant Section whether or not such claim is groundless, false or fraudulent; and c) at the Insured s request and with the Insurer's prior approval, for representation of the Insured at proceedings or appeals arising out of an alleged breach of a statutory or common law duty in connection with any claim arising under this Policy or any Occurrence which may be covered under the relevant Section: i) in any court; or ii) at any coroner s inquest or fatal injury inquiry or similar hearing; or iii) at any arbitration or conciliation hearings; or iv) at any pre-trial conference Legal Proceedings includes any litigation, arbitration, mediation, adjudication or any other process of formal dispute resolution and any appeal. Limits of Indemnity means as detailed at the Limits Schedule the maximum amount payable by the Insurer to the Insured under a Section subject to the application of any Deductible or Co-Insurance. Limits Schedule means the limits schedule detailed in page [5] of this Policy. 05/09v1 Comprehensive Energy Liability Policy Page 7

12 Minimum Premium means the minimum amount of premium required as detailed in the Policy Schedule. Motor Vehicle means any mechanically propelled vehicle, trailer or agricultural implement which belongs to the Insured or for which the Insured is legally responsible but not including steam-driven vehicles. Occurrence means an act, accident, event or all acts, accidents, events of a series consequent on or attributable to one source or original cause which during the Period of Insurance results in a) Bodily Injury, or b) Personal Injury, or c) Property Damage, or d) obstruction, interference with traffic, loss of amenities, nuisance, trespass or interference with any right of light, air, water or easement which is neither expected nor intended by the Insured. Offshore Activity means work in or on any offshore rig or platform including embarkation on to a vessel or aircraft for conveyance to an offshore rig or platform until disembarkation from the vessel or aircraft on to land from such offshore rig or platform. Period of Insurance means the period of insurance under this Policy as detailed in the Policy Schedule and any subsequent period agreed to in writing or any shorter period arising as a result of cancellation of this Policy. Personal Injury means:- a) Bodily Injury b) humiliation, false arrest, invasion of the right of privacy, wrongful accusation of shoplifting, detention, false imprisonment, false or wrongful entry or eviction, interfering with the right of private occupancy, discrimination, malicious prosecution, injurious falsehood, libel, slander, defamation of character, deceit; and/or c) assault committed by an Employee for the sole purposes of preventing or eliminating danger to persons or tangible property. Policy means this policy together with all Endorsements issued by the Insurer in writing from time to time. Policy Schedule means the Insured s policy schedule detailed at page [4] of this Policy. Policy Territory means anywhere in the world other than a) the United States of America, its territories and possessions where: i) Products have been knowingly exported ii) the Insured has domiciled operations or premises; or iii) manual work is undertaken; b) the Insured s domiciled operations or premises in Canada; c) any country or territory where any government embargo or sanction prohibits the Insured from trading or prevents the Insurer from providing the Insured with insurance; and/or d) where Legal Proceedings are brought to enforce an award or judgment made in any of the above specified places Pollution means pollution or contamination of the atmosphere, water, land or tangible property. Pollution Conditions means the discharge, dispersal, release or escape of any solid, liquid, gaseous or thermal irritant, pollutant or contaminant, including, but not limited to, smoke, vapours, soot, fumes, acids, alkalis, toxic chemicals, medical waste and waste materials in or on land, or any structure on land, the atmosphere or any watercourse or body of water, including groundwater, provided such conditions are not naturally present in the environment in the amounts or concentrations discovered. Premium means the premium detailed in the Policy Schedule. 05/09v1 Comprehensive Energy Liability Policy Page 8

13 Product(s) means a) the Insured s products sold, supplied, designed, leased or licensed to others, manufactured, repaired, serviced, installed, inspected, adjusted, erected, altered, tested, handled, cleaned or treated by, or on behalf of, the Insured in the ordinary course of Business; and b) all associated containers, labels, instructions and packaging material after such products have ceased to be in the Insured s custody or control. Product(s) does not mean food and drink supplied by, or on behalf of, the Insured primarily to the Insured s Employees as a staff benefit. Product Recall means the withdrawal, recall or Governmental Recall of any Product from the stream of commerce because of: a) i) a known or suspected defect, deficiency or inadequacy of any Product; or ii) accidental or unintentional contamination, impairment or mislabelling of a Product, or any adverse publicity implying such, which occurs during or as a result of its production, preparation, manufacture, processing, blending, mixing, compounding, packaging or distribution which creates a condition which if used or consumed would result in Bodily Injury (in the event the Product is intended for human consumption, the Bodily Injury must manifest itself within 360 days of consumption) or Property Damage; or b) any actual, alleged, threatened, intentional, malicious or wrongful alteration of the Product by any person so as to render it unfit, dangerous for its intended use or create such an impression to the public provided that such Product was first introduced into the stream of commerce after the first day of the Period of Insurance and was no longer in the physical possession of the Insured, its agents or Employees. Product Recall Cost(s) means reasonable and necessary a) costs incurred when executing a Product Recall by the Insured or by the Insured s Product distributors for which the Insured is legally liable including costs incurred to destroy affected Products; and/or b) costs incurred by the Insured to restore any recalled Product to merchantable quality or replace any recalled Product that has been destroyed, is unfit for sale or for its original use, with a product of similar value c) fees and costs for product safety, security or public relations consultants or advisors hired with the Insurer's prior written consent to assist the Insured in responding to a Product Recall. In the event that the Product becomes a part of a product manufactured, distributed or handled by one of the Insured s customers, this Policy shall apply to Product Recall Cost(s) a) and b) above for such Products only if the Insured becomes legally obligated to reimburse the customer for such costs. The amount the Insurer will pay to the Insured for customer s costs as described above will not exceed the costs the Insured would have incurred in recalling the aforementioned customer s products. Property Damage means physical damage to, loss of or destruction of tangible property including any loss arising directly therefrom. Restoration Costs means reasonable and necessary costs incurred by the Insured with the Insurer s prior written consent to repair, replace or restore real or personal property to substantially the same condition it was in prior to being damaged during work performed in the course of incurring Clean-Up Costs. However, such Restoration Costs shall not exceed the net present value of such property prior to incurring Clean-Up Costs. Restoration Costs do not include costs associated with improvements or betterments. Section means a section of this Policy which details what the Insured is covered for. The Insured should check the Policy Schedule to see which sections apply. 05/09v1 Comprehensive Energy Liability Policy Page 9

14 Section 1 Statute Ordinance Regulation means:- a) the Health and Safety at Work etc. Act 1974 or the Health and Safety at Work (Northern Ireland) Order 1978 b) the Corporate Manslaughter and Corporate Homicide Act 2007; and c) the Food Safety Act 1990 or any other law applicable to the Insured in respect of the health and safety of Employees. Section 2 Statute Ordinance Regulation means: a) the Health and Safety at Work etc. Act 1974 or the Health and Safety at Work (Northern Ireland) Order 1978 b) the Corporate Manslaughter and Corporate Homicide Act 2007 c) the Food Safety Act 1990; and d) Part II of the Consumer Protection Act or any other law applicable to the Insured in respect of the health and safety of any person other than an Employee. Interpretation Any Headings used in this Policy are for information purposes only and do not form part of the Policy document. References to any statutory provision and/or statutory ordinance regulation in this Policy are to be construed as references to that statutory provision and/or statutory ordinance regulation (as applicable) as amended, supplemented, re-enacted or replaced from time to time and are to include any orders, regulations, instruments or other subordinated legislation made under or deriving validity from that statutory provision or local equivalents for operations outside of the United Kingdom. 05/09v1 Comprehensive Energy Liability Policy Page 10

15 General Conditions & Provisions The following conditions and provisions are applicable to the Insured in respect of the whole Policy. There are additional General Conditions and Provisions in Sections 1, 3 and 4 relating to those Sections. 1. Information Disclosed Prior to the issuing of this Policy and during the Period of Insurance the Insured must make all reasonable efforts to ensure that the Insurer is made aware of all material information in relation to the risks covered under this Policy. Such material information should be provided by the Insured to the Insurer as soon as possible. Material information means such information that the Insured should have reasonably known would have influenced the Insurer in accepting the risk and formulating the terms of this Policy. The Insurer will not exercise its right to deny liability and will not avoid this Policy where there has been non disclosure, misrepresentation or untrue statement made in any information provided to the Insurer provided that such non disclosure, misrepresentation or untrue statement was not known to the Insured or was innocent and free of any negligent or fraudulent conduct or intent to deceive. 2. Reasonable Precautions The Insured must take all reasonable precautions to prevent injury, loss or damage and maintain all property in good repair and comply with all legal and regulatory obligations to minimise any loss or injury. A failure by the Insured to take all reasonable precautions will mean that the Insurer can refuse to pay all relevant claims. 3. Auditing and surveying The Insurer shall be entitled to conduct a survey of the Insured s premises, operations and health and safety documentation and procedures at any time, and without prior notice where deemed necessary or advisable. In all other circumstances the Insurer will use all reasonable endeavours to give the Insured reasonable notice of any intended survey. The Insured shall provide the Insurer with all reasonable co-operation and assistance as may be required, including but not limited to access to:- a) premises, plant and other places of Business b) Employees c) books, records and other documentation A failure by the Insured to provide such co-operation and assistance will entitle the Insurer to refuse to pay relevant claims. The Insurer shall notify the Insured as regards the findings of the survey. In the event of any adverse finding(s) which are reasonably capable of being remedied, the Insured shall use all reasonable endeavours to implement remedial action as required in the Insurer s risk improvements within the timeframe specified. It is understood and agreed that the Insurer shall continue to provide cover under the Policy whilst such remedial actions are being implemented. In the event that:- i) the Insured fails to implement the required remedial action within the specified timeframe, or ii) the remedial action is incapable of being implemented. The Insurer shall have the right to cancel this Policy in accordance with General Condition and Provision 8 The Insurer may examine and audit the Insured s books and records at any time during any Period of Insurance and for three years after the termination of this Policy but only in so far as they relate to the subject matter of this Policy. A failure by the Insured to allow the Insurer to examine and audit the Insured s books and records will mean that the Insurer may refuse to pay relevant claims. 05/09v1 Comprehensive Energy Liability Policy Page 11

16 4. Limits of Indemnity The Limits of Indemnity under this Policy are detailed at the Limits Schedule or otherwise in a Section. If there is more than one Insured covered by this Policy or in a Section, the applicable Limits of Indemnity will apply to all of the Insureds. A claim by one of the Insureds will reduce the applicable Limits of Indemnity for all of the Insureds. It is the Insureds responsibility to ensure that any party participating as an Insured under this Policy agrees to observe, fulfil and comply with the terms and conditions of this Policy as far as is practicable to do so. A claim by a party other than the Insured shall prohibit the same claim being made by the Insured or vice versa. The total amount of indemnity under this Policy shall not exceed the Limits of Indemnity specified in the Limits Schedule. All claims will reduce the Limits of Indemnity regardless of who brings them. 5. Alteration of Risk This Policy will apply automatically to all of the Insured s activities established, created, acquired or disposed of (including premises) during the Period of Insurance but the Insured will notify the Insurer within thirty (30) days of those alterations that represent a material change to the nature of the Business. Where the alteration represents a change to the Business or any material information already provided, the Insurer reserves the right to accept or deny coverage at the time of notification and to establish a separate rate and premium and, if appropriate, terms to provide coverage for any such change. 6. Cross Liabilities Where the Insured comprises of more than one party, the Insurer will indemnify each party as though a separate policy had been issued to each of them provided that the total amount of indemnity under this Policy shall not exceed the Limits of Indemnity specified in the Limits Schedule. This Condition 6 (Cross Liabilities) does not apply to Section 3 Product Recall. 7. Premium Adjustment If an adjustment of Premium is specified in the Policy Schedule, the Premium will be calculated by the Insurer from information provided by the Insured prior to the commencement of this Policy. Within 3 months from the end of the Period of Insurance the Insured will provide the Insurer with such actual, accurate and complete information the Insurer may reasonably require. The Insurer will then recalculate the Premium in accordance with the Adjustment Formula. On the basis of the Adjustment Formula and on sending notice to the Insured: (1) Premium may be returned to the Insured (save that the Insurer will always be entitled to the Minimum Premium); or (2) additional Premium may become due and payable to the Insurer on the date notice is sent to the Insured. 8. Cancellation The Insured may cancel this Policy by giving 60 days notice in writing to the Insurer. On cancellation the Insurer will refund to the Insured the Premium for any Period of Insurance remaining provided no claims or incidents have been reported. The Insurer will remain liable for all claims arising from an Occurrence having taken place prior to cancellation. The Insurer may cancel this Policy by giving 60 days notice to the Insured or the Insured s broker or insurance advisor. The Insurer will refund to the Insured the Premium for any Period of Insurance remaining. On cancellation, the Insured shall be entitled to retain the relevant certificate of Employers Liability insurance for the sole purpose of satisfying the requirements imposed by the Employers Liability (Compulsory Insurance) Acts and Regulations. 9. Other Insurances If at the time the Insured makes a claim and is insured for the same claim by any other insurance the Insurer can refuse to pay the Insured s claim under this Policy except for any excess beyond the amount payable by the other insurer. 05/09v1 Comprehensive Energy Liability Policy Page 12

17 10. Employers Liability (Compulsory Insurance) Act 1969 The indemnity granted by Section 1 of this Policy is deemed to be in accordance with the provisions of any law enacted in Great Britain, Northern Ireland, the Isle of Man and the Channel Islands relating to the compulsory insurance of liability to employees. 11. Governing Law Any dispute concerning the interpretation of any part of this Policy is subject to English or Welsh law (or Scottish law where applicable). Each party agrees to submit to the jurisdiction of any court of competent jurisdiction within England or Wales (or Scotland where applicable) and to comply with all requirements necessary to give such court jurisdiction. 05/09v1 Comprehensive Energy Liability Policy Page 13

18 Claims Conditions & Procedures The following conditions and procedures are applicable to the Insured in respect of the whole Policy, except as noted. If the Insured does not take the measures required in accordance with these Claims Conditions and Procedures the Insurer can refuse to pay the relevant claim under this Policy. 1. Potential Claims As soon as the Insured becomes aware of a potential claim, the Insured must immediately use all reasonable endeavours to try to limit the amount of any loss for which the Insured can claim under this Policy. 2. Notification of Claims In the event of any incident or circumstance which may result in a claim under this Policy the Insured shall: a) as soon as possible report details of any claim to the Insurer in writing b) immediately notify the Insurer of any impending prosecution, inquest, fatal injury or civil proceedings c) forward to the Insurer all claim notifications received by the Insured including all other documents received or served; and d) provide all information, evidence, documentation, periodic updates and assistance as the Insurer may require. Full details of contact numbers for the reporting of ALL claims are given on Page [2]. Particulars of Costs- Section 3 Product Recall The Insured will submit to the Insurer within 10 days of the Product Recall an initial written statement of Product Recall Costs stating the full particulars of the costs incurred and the Insured s initial calculations and/or projections of the elements and composition of the costs. Whether or not any partial payments have been made, a final statement of costs stating the full particulars of the costs incurred and the Insured s final calculations together with full supporting documentation must be submitted to the Insurer in writing no later than 12 months after the commencement of the Product Recall. Notification of Claims Section 5 Crisis Containment The Insured will give immediate notice to the Insurer of any Crisis by telephoning the Crisis Centre Hotline at the telephone numbers listed under the Notification of Claims section of this Policy. Any Crisis that meets the following conditions must be reported to the Insurer as follows: a) if it results in regional or national media coverage in print or by radio or television and relates to the Crisis must be reported to the Insurer within 24 hours of the media coverage. b) if it results in the filing of a claim or litigation against the Insured and relates to the Crisis must be reported to the Insurer within 48 hours of the claim or litigation filing. If requested by the Insurer, the verbal reporting of any Crisis must be followed by written detailed notification to The Complex Casualty Claims Manager, AIG Europe Limited, 2-8 Altyre Road, Croydon, Surrey CR9 2LG. The reporting of a Crisis does not guarantee that it will be considered a Crisis by the Insurer Notification of Claims Section 6 Clean-Up Costs The Insured shall give written notice of any notification or correspondence in respect of liability for Clean-Up Costs as soon as reasonably practicable but in any event within thirty (30) days of the expiry of the Period of Insurance. Notice shall include information sufficient to identify the Insured, the location and nature of the Pollution Conditions. The Insured shall provide to the Insurer as evidence of expenses incurred: a) copies of documentation, correspondence, notices or orders received by the Insured relating to Clean-Up Costs including but not limited to: i) any responses to any consultation carried out by the relevant governmental or statutory body or agency 05/09v1 Comprehensive Energy Liability Policy Page 14

19 ii) correspondence confirming the identity of the person responsible for the Pollution Conditions iii) all necessary reports, investigations and surveys describing the Pollution Conditions and/or Clean-Up Costs; and b) copies of all invoices for services performed by legal and/or technical experts on behalf of the Insured to undertake the Clean-Up Costs. 3. Control of Claims The Insured will not negotiate, admit liability or make any promise to pay or settle a claim made against the Insured without the Insurer's written consent. 4. Payment of Claims a) The Insurer will pay the Insured, or another party on behalf of the Insured, for a valid claim (subject to the relevant Limit of Indemnity) as soon as practicable, less any Deductible or Co-Insurance. Where the Insurer pays all or part of any Deductible or Co-Insurance to ensure payment of a claim to a third party, the Insured will promptly reimburse the Insurer such amount. b) On payment to the Insured of the appropriate Limit of Indemnity (net of any applicable Deductible or Co-Insurance and after deducting any sum or sums already paid) or any lesser amount for which such claim or claims can be settled, the Insurer may then, subject to Condition 5 (Recovery on Payment), relinquish the conduct and control to the Insured and be under no further liability in connection with such claim or claims except for any Legal Costs incurred prior to the date of such payment save that where any amount is recovered by the Insured such money will be paid to the Insurer. c) Where an amount payable by the Insured in respect of any loss or liability is subject to a value added tax (VAT), the loss or liability shall include the amount of that value added tax insofar as it is irrecoverable by the Insured. The Insured will provide a letter to the Insurer at the time that a claim is submitted, which confirms the percentage of the VAT paid on legal expenses and the Insurer will reimburse the Insured such amount. 5. Recovery on Payment On payment of a claim by the Insurer, the Insurer may in the Insured s name, at the Insurer's cost recover against any third party who is responsible for the Insured s claim amounts the Insurer becomes liable to pay under this Policy. The Insured shall assist the Insurer as the Insurer may request and shall do nothing to prevent this right other than where the Insured has entered into a contract in the normal course of Business which required such rights to have been waived. 05/09v1 Comprehensive Energy Liability Policy Page 15

20 General Exclusions The Insurer does not cover the Insured under Sections 2, 3, 4, 5 and 6 of this Policy for the following:- 1. Asbestos In respect of any loss, demand, defence, claim or suit arising out of or related in any way whether directly or indirectly to asbestos or materials containing asbestos howsoever occurring including any Legal Costs. 2. War As a consequence of war, invasion, act of a foreign enemy, hostilities (whether war be declared or not), civil war, rebellion, revolution, insurrection, invasion or military or usurped power. 3. Nuclear and Radioactive Contamination a) From any ionising radiations or contamination by radioactivity from any nuclear fuel or from any nuclear waste from the combustion of nuclear fuel, or b) from the radioactive, toxic, explosive or other hazardous properties of any nuclear assembly or nuclear component thereof other than arising from radio-isotopes, radium or radium compounds when used away from the place where such are made or produced and when used exclusively or incidental to ordinary industrial, educational or medical research. 4. Fines and Penalties From any liquidated damages, civil or criminal fines or penalties. General Exclusion 4 also applies to Section 1 (Employers' Liability). 05/09v1 Comprehensive Energy Liability Policy Page 16

21 Section 1 Employers Liability Please read the Policy Schedule to see if the Insured is covered by this Section. This Section details what employers liabilities are covered by the Insurer subject to the terms and conditions of this Policy and any additional provisions applicable to this Section. For the avoidance of doubt, this Section is not intended to replace the Insured s obligation to obtain insurance in respect of their liability to Employees in other territories. The Cover 1. Insuring Agreement The Insurer will indemnify the Insured for all sums which the Insured becomes legally liable to pay as damages or compensation, and Legal Costs in respect of Bodily Injury to an Employee caused during the Period of Insurance and arising out of and in the course of their employment or engagement by the Insured in the Business whilst: a) anywhere in the world provided that the Employee's employment or engagement is entered into in Great Britain, Northern Ireland, the Isle of Man and the Channel Islands; or b) in Great Britain, Northern Ireland, the Isle of Man and the Channel Islands in respect of employment or engagement entered into outside these territories including temporary visits outside these countries other than back to the country of employment. 2. Limit of Indemnity The amount stated in the Limits Schedule for this Section is the maximum amount payable by the Insurer including interest in respect of any one claim or number of claims arising out of one event. The indemnity provided by any Extension to this Section or any other amendment to this Policy shall not operate other than where provided so as to increase the maximum amount payable under this Section. 3. Legal Costs and Legal Expenses Legal Costs and legal expenses as provided under this Section are payable in addition to the Limit of Indemnity up to the amount stated in the Limits Schedule for this Section. Employers Liability Additional Provisions In addition to the General Conditions & Provisions the following shall apply to this Section:- Right of Recovery If the Insurer is obliged to indemnify the Insured under this Section as a legal requirement of any compulsory liability insurance in circumstances where the Insurer would otherwise have been entitled to deny such indemnity, the Insured hereby agrees to reimburse the Insurer for any such payment made. Employers Liability Extensions The indemnity provided by this Section of the Policy includes the following extensions provided that where a party other than the Insured is indemnified, such party shall act as though they were the Insured and observe, fulfil and be subject to the terms of this Policy in so far as they can apply:- 1. Indemnity to others The Insurer will indemnify: a) the Insured s executor, administrator or personal representative but only in respect of liability incurred by the Insured b) any principal whilst engaged in the course of the Insured s Business but only to the extent required by the contract and if the Insured so requests, indemnify as if they were the Insured: c) any partner or director of the Insured or any former partner or director d) any Employee or any former Employee e) any officer, committee member, Employee, paid or voluntary helper, member or family of a member of the Insured s social, sports, welfare or theatrical organisations or clubs, first aid, fire or ambulance services or security services in their respective capacity as such 05/09v1 Comprehensive Energy Liability Policy Page 17

22 f) any director, partner or executive of the Insured in respect of liability for private work undertaken by an Employee for such director, partner or executive with the consent of the Insured g) any officers or trustees of the Insured s pension scheme(s) but in respect of c) to g) above the Insurer will not provide an indemnity i) if such party is entitled to indemnity under any other policy or in any other way ii) unless the Insurer shall have the sole conduct and control of all claims. 2. Unsatisfied Court Judgments Where damages have been awarded by a court in the European Union to an Employee for Bodily Injury arising from their employment with the Insured in the European Union, and where such damages remain all or partly unpaid six months after the date of the judgment, then at the Insured s request the Insurer will pay the Employee the amount of the outstanding damages and any awarded costs provided that there is no appeal outstanding and judgment is assigned to the Insurer. 3. Compensation for Court Attendance The Insurer will pay to the Insured compensation in respect of the persons stated below when absent from work to attend any civil, criminal, tribunal, conciliation, arbitration, fatal inquiry or pre-trial conference proceedings at the Insurer's request at the following rates per day: a) directors, partners or executives of the Insured - GBP500 b) Employees - GBP250. Such amounts will be paid in addition to the Limit of Indemnity stated in the Limits Schedule. 4. Transfer of Undertakings (Protection of Employment) Regulations 2006 The Insurer will indemnify the Insured for damages or compensation for Bodily Injury to an Employee caused prior to the date the Employee commences employment with the Insured and for which the Insured is liable by virtue of the Transfer of Undertakings (Protection of Employment) Regulations This Extension will only apply if the Insured is unable to obtain an indemnity under a previous policy of insurance and this Policy is still in force. 5. Data Protection Act 1998 The Insurer will indemnify the Insured for their liability to pay: a) to an Employee compensation in respect of damage or distress arising under Section 13 of the Data Protection Act 1998 including, with prior approval from the Insurer, the Insured s Legal Costs and expenses; and/or b) with prior approval from the Insurer, the Insured s Legal Costs for a prosecution arising from a claim by an Employee brought under Section 21 of the Data Protection Act 1998 provided that the Insured is registered or has given notification in accordance with the terms of the Data Protection Act 1998, unless with prior approval from the Insurer, the Insured is exempt from doing so, and the claim is first made against the Insured during the Period of Insurance. However the Insurer will not pay: i) a claim arising from a deliberate or intentional act or omission by a party entitled to claim (including any Employee, servant or agent of a party entitled to claim) under this Policy who knew they would be breaching the Data Protection Act 1998 ii) claims which arise out of circumstances notified to previous insurers or known to the Insured at inception of this Policy; or iii) liability for which indemnity is provided under any other more specific insurance or to the extent that cover is provided elsewhere in this Policy. This extension and exclusions will also apply to compensation and Legal Costs and expenses recoverable under similar clauses in the Data Protection Act /09v1 Comprehensive Energy Liability Policy Page 18