Policy wording. General conditions. AMI Businesspack Business Insurance. Your duty to comply. About this Businesspack policy. Interpreting this Policy

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1 AMI Businesspack Business Insurance Policy wording Welcome, thanks for choosing to protect your business with IAG New Zealand Limited. AMI Insurance Limited is part of the IAG group of companies in New Zealand. About this Businesspack policy This Businesspack has the following Parts available under it: 1. Business Assets Part 2. Business Interruption Part 3. Business Vehicles Part 4. Business Liability Part i. Broadform Liability cover ii. Statutory Liability cover iii. Employer s Liability cover 5. Business Income Protection Part 6. Business Machinery Breakdown Part. The Parts you have selected are shown in your schedule. Each Part is an individual contract (Policy) consisting of: 1. this Business Insurance policy wording insert, which applies to all Parts, and 2. the policy wording insert for each Part you selected, and 3. the schedule, and 4. any endorsements or warranties that we apply, and 5. the Proposal for Insurance and information you have provided in the application. Your duty of disclosure When you apply for insurance, you have a legal duty of disclosure. This means you or anyone on your behalf must tell us everything you know (or could be reasonably expected to know) that a prudent insurer would want to take into account in deciding: 1. to accept or decline your insurance, and/or 2. the cost or terms of the insurance, including the excess. You also have this duty every time your insurance renews and when you make any changes to it. If you or anyone on your behalf breaches this duty, we may treat this Policy as being of no effect and to have never existed. Please ask us if you are not sure whether you need to tell us about something. Your duty to comply You (and any other person or entity we cover) must comply with the conditions of this Policy at all times. Interpreting this Policy Certain words in this Policy have a specific meaning. These words appear in bold and you will find the meaning listed in the Definitions. The definitions apply to the plural and any derivatives of the bolded words. You will also find examples and comments to make parts of this policy easier to understand. These examples and comments, which appear in italics, do not affect or limit the meaning of the section they refer to. The headings in this Policy document are for reference only and do not form part of it. They must not be used when interpreting the Policy document. General conditions How we will administer this Policy Cancellation By You You may cancel this Policy at any time by notifying us. If you do, we will refund any premium that is due to you based on the unused portion of the period of insurance. You must pay any outstanding premium due for the used portion of the period of insurance. By Us We may cancel this Policy by giving you or your agent notice in writing or by electronic means at your or your agent s last known address. Your policy will be cancelled from 4pm on the 30th day after the date of the notice. We will refund you any premium that is due to you based on the unused portion of the period of insurance. Change of Terms We may change the terms of this Policy (including the excess) by giving you or your agent notice in writing or by electronic means at your or your agent s last known address. Unless otherwise specified in this Policy the change in terms will take effect from 4pm on the 30th day after the date of the notice. Insurance Agreement You agree to pay us the premium described in the schedule and comply with this Policy. In exchange, we agree to insure you as set out in this Policy. AMI Businesspack Business Insurance 1

2 Other Insurance You must notify us as soon as you know of any other insurance policy that covers you for any of the risks covered under this Policy. This Policy does not cover your loss or liability at all if it is insured to any extent under any other insurance policy. We will not contribute towards any claim under any other insurance policy. This does not apply to cover provided by Automatic Policy Extension Employee Effects Cover or Automatic Policy Extension Tenanted Premises under the Business Assets Part. Interests of other Parties If we are advised of any party having a financial interest over your insured property, we may pay part or all of any valid claim proceeds to that party to the extent of their interest. This will form part of our obligations to you under this Policy. You consent to us transferring your relevant personal information to that party. Any party, who is recorded as having a financial interest under this Policy, is not covered by this Policy and does not have rights to claim under this Policy. Separate Insurance If more than one person or entity is named as Insured in the schedule, then all the parties are insured separately (as though a separate Policy had been issued to each person/entity). However, the sum insured and any sub limit in this Policy will apply to the aggregate of all amounts payable to all insureds for any event. Premium Payment Options You may choose either an annual or a monthly renewable contract. If you have elected a monthly renewable contract, then: 1. you must pay by direct debit using the Direct Debit Authority we require, and 2. the Policy is for the initial period of insurance stated in the schedule, and 3. the Policy will be renewed for further monthly periods of insurance upon receipt of the renewal premium due under the Deduction Authority. 4. the Policy terms, including the premium, will be reviewed on the anniversary date stated in the schedule. Laws and Acts that Govern this Policy Governing Law and Jurisdiction The law of New Zealand applies to this Policy and the New Zealand Courts have exclusive jurisdiction. Legislation Changes Any reference to any Act of Parliament or subordinate rules referred to in this Policy includes any amendments made or substitutions to that law. Insurance Law Reform Acts The exclusions and conditions in this Policy are subject to your rights under the Insurance Law Reform Act 1977 and Insurance Law Reform Act Currency All sums in this Policy are specified in New Zealand dollars unless stated otherwise. Goods and Services Tax Where GST is recoverable by us under the Goods and Services Tax Act 1985: 1. all sums insured exclude GST, and 2. all sub limits exclude GST, and 3. all excesses include GST, and 4. GST will be added, where applicable, to claim payments. Your obligations Breach of Any Condition If: 1. you, or 2. any other person or entity we cover under this Policy, or 3. anyone acting on your behalf, breaches any of the terms and/or conditions of this Policy, we may: a. decline your claim either in whole or in part, and/or b. declare either this Policy or all insurance you have with us to be of no effect from the date of the breach. True statements and answers True statements and answers must be given, whether by you or any other person, when you: a. apply for this insurance, and/or b. notify us regarding any change in circumstances, and/or c. make any claim under this Policy, and provide any further communication regarding the claim. Reasonable Care You must take reasonable care at all times to avoid circumstances that could result in a claim. Your claim will not be covered if you are reckless or grossly irresponsible. Change in Circumstances You must notify us immediately if, after we have accepted your application for this Policy, there is a material: 1. increase in the risk covered, or 2. alteration of the risk covered. Once you have told us of the change, we may cancel or alter the premium and/or terms of this policy. If you fail to notify us about a change in the risk insured, we may: a. declare this policy unenforceable, and/or b. decline any subsequent claim either in whole or in part. These actions will be taken from the date you knew, or ought to have known, of the increase or alteration in the risk insured. AMI Businesspack Business Insurance 2

3 Information is material where we would have made different decisions about either: a. accepting your insurance, or b. setting the terms of your insurance, if we had known that information. If in any doubt, notify us anyway. The risk covered refers to both: a. the actual property or liabilities insured, and b. you or other persons covered by this Policy. Claims What you must do If anything happens that may lead to a claim under this Policy, you must: 1. take all reasonable steps to minimise the claim and prevent any further loss, expense or liability, and 2. not admit you are liable or do or say anything that may prejudice our ability to defend the claim against you or take recovery action in your name, and 3. tell us immediately, and 4. notify the police as soon as possible if you think any loss was caused by an illegal act, and 5. give us free access to examine and assess the claim, and 6. allow us to examine the insured property before any repairs are started, and 7. not destroy or dispose of anything that is or could be part of a claim, and 8. send to us as soon as possible anything you receive from anyone about a claim or possible claim against you, and 9. give us any information or help that we ask for, and 10. complete a claim form or statutory declaration to confirm the claim if we request it, and 11. consent to your personal information, in connection with the claim, being: a. disclosed to us, and b. transferred to the Insurance Claims Register Limited. What you must obtain our agreement to do You must obtain our agreement before you: 1. incur any expenses in connection with any claim under this Policy, or 2. negotiate, pay, settle, admit or deny any claim against you, or 3. do anything that may prejudice our rights of recovery. Be truthful If your claim is dishonest or fraudulent in any way, we may: 1. decline your claim either in whole or in part, and/or 2. declare either this Policy or all insurance you have with us to be of no effect from the date of the dishonest or fraudulent act. This is at our sole discretion. Actions we may take Subrogation Once we have accepted any part of your claim under this Policy, we may assume your legal right of recovery. If we initiate a recovery we will include your excess, and any other uninsured losses suffered by you. Where we do this, you agree to pay your proportional share of the recovery costs, and subsequently the proceeds of the recovery will be shared on the same proportional basis, except that we will reimburse your excess first. You must fully co-operate with any recovery process. If you do not, we may recover from you the amount paid in relation to the claim. Recoveries If any property that we have paid a claim for is later found or recovered, you must tell us immediately and hand it over to us if we request it. We have the right to keep any property that we have paid a claim for under this Policy, including any proceeds if it is sold. Reparation If any person is ordered to make reparation to you for loss to any property that we have paid a claim under this Policy for, then you must tell us. Any payments received, must first reimburse our claims payment up to the amount of any reparation received. Salvage In settling any claim we may deal with any salvage in a reasonable manner. Excess The excess is the first amount you must contribute towards the cost of a claim. The Excess applicable is either stated in each policy wording insert and/or shown in the schedule. This amount will be deducted from the amount payable in respect of each happening. This does not apply to the Business Liability Part, which has its own separate Excess clauses in the Broadform, Employer s and Statutory Liability policy wordings. Inspection We may inspect any item insured under this Policy at any reasonable time and you must provide such information as may be reasonably required by us in relation to the subject of this insurance. Neither this Condition nor any inspection performed by us, nor any report arising from such an inspection, shall be regarded as an undertaking by us to determine or warrant that any operations or premises are safe. General exclusions You are not insured under this Policy for any: Beyond New Zealand 1. loss, damage, injury, liability or prosecution arising beyond New Zealand, unless specifically stated in the schedule, or policy wording insert issued to you for each Part selected. AMI Businesspack Business Insurance 3

4 Confiscation 2. loss, damage, injury, liability or prosecution of any type in connection with confiscation, nationalisation, requisition or destruction of, or damage to property by order of government, public or local authority (unless the order is given to control any accidental loss that is covered by this Policy). Electronic Data and Software 3. loss of or damage to electronic data and software, from any cause whatsoever including, but not limited to, a computer virus. This includes loss of use, reduction in functionality or any other associated loss or expense in connection with electronic data and software. However this exclusion does not apply to physical damage to other insured property that results from that loss of or damage to electronic data, and which is not otherwise excluded. Electronic data means facts, concepts and information converted to a form useable for communications, display, distribution, interpretation or processing by electronic and electromechanical data processing or electronically controlled equipment. Software means programs, procedures and routines associated with the operation of electronic or electromagnetic data processing or electronically controlled equipment Computer virus means a set of corrupting, harmful or otherwise unauthorised instructions or code including a set of maliciously introduced unauthorised instructions or code, programmatic or otherwise, which propagate themselves through a computer system or network of whatsoever nature. This includes but is not limited to Trojan Horses, Worms and Time or Logic Bombs. This exclusion 3 does not apply to the Business Liability Part and Business Income Protection Part. Infectious Diseases 4. loss, damage, injury, liability or prosecution of any type in connection with a: a. notifiable infectious disease under the Health Act 1956, and/or b. notifiable disease under the Biosecurity Act This exclusion 4 does not apply to the Business Liability Part. Nuclear 5. loss, damage, injury, liability or prosecution of any type in connection with: a. ionising radiation or contamination by radioactivity from: i. any nuclear fuel, or ii. any nuclear waste from the combustion or fission of nuclear fuel. b. nuclear weapons material. War 6. loss, damage, injury, liability or prosecution of any type in connection with any of the following, including controlling, preventing or suppressing any of the following: war, invasion, act of foreign enemy, hostilities or war like operations (whether war is declared or not), civil war, mutiny, rebellion, revolution, civil commotion assuming the proportions of or amounting to an uprising, insurrection, military or usurped power. Seepage, Pollution and Contamination 7. loss, damage, injury, liability or prosecution of any type in connection with seepage, pollution or contamination, other than any cover provided under the Broadform, Statutory or Employers Liability policy wordings. Terrorism 8. loss, damage, injury, liability or prosecution of any type in connection with an act of terrorism, including in connection with controlling, preventing, suppressing, retaliating against, or responding to an act of terrorism. An act of terrorism means any act, or preparation in respect of action, or threat of action designed to influence or coerce 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(s) of persons whether acting alone or on behalf of or in connection with any organisation(s) or government(s) de jure or de facto, and that: a. involves violence against one or more persons, or b. involves damage to property, or c. endangers life other than that of the person committing the action, or d. creates a risk to health or safety of the public or a section of the public, or e. is designed to interfere with or disrupt an electronic system. Definitions period of insurance The period shown in the schedule, that specifies the start and end dates of this Policy. schedule The latest version of the Schedule we issued to you for this Policy. we/us/our IAG New Zealand Limited This policy wording is subject to copyright. AMI Businesspack Business Insurance AMI0537/1 08/14 4

5 AMI Businesspack Business Vehicles Policy wording The Insurance 1. This part applies while the vehicle insured is being used a. for private, social, domestic or pleasure purposes including community work b. in connection with any trade or business specified in the Schedule This part will not apply while the vehicle insured is let out on hire unless being driven by the Insured or Insured s driver during such hire. 2. If the Schedule names more than one person as the Insured a. Sections 1 and 2 of this Part insure all the named persons jointly and in respect of the application of all terms provisions exceptions and conditions of the Policy such persons shall be deemed jointly to constitute one Insured and be deemed to have knowledge of all such terms provisions exceptions and conditions; b. we will treat a breach, whether express or implied, of any part of this Policy by any one of the named persons as a breach by all of them. Any such breach shall result in all benefit under this Part being forfeited. Definitions 1. Your Vehicle is any vehicle described in the Schedule, including a. any standard tool supplied by the vehicle s manufacturer or a similar substitute tool; b. any Accessory or spare part whilst in or on your Vehicle; c. any Accessory which is away from your Vehicle if it is designed for use in a vehicle and has been temporarily removed for security purposes or servicing. 2. An Accessory is a part of your Vehicle not directly related to its function as a vehicle including a. any radio, audio equipment or other in-vehicle entertainment and communication equipment forming an integral part of your Vehicle; b. any portable telephone which connects to a power source in your Vehicle; c. any detachable and fixed equipment such as radar detectors, on board computers, or heating and/or cooling units, tarpaulins, chains and twitches, bearers and load securing and lifting equipment, ropes, signwriting and artwork and the like; d. LPG, CNG or other fuel conversion or performance improvement installations e. any car seat covers, child car seats or mats. 3. An Event is any accident, loss, damage, Injury or legal liability. 4. Liability is legal liability for a. accidental loss of or damage to anyone else s property, or b. accidental Injury to any person. 5. Injury is bodily injury caused solely and directly by violent, accidental, external and visible means. Section 1 Loss of or damage to your vehicle 1. Loss of or damage to your Vehicle where a Sum Insured is shown in the Schedule for that Vehicle. 2. Reasonable costs incurred to take care of your Vehicle and its Accessories if it is disabled following an Event for which a claim is payable under Paragraph 1 of this Section. 3. General Average or Salvage charges you are legally required to pay as a result of your Vehicle being carried by ship between the North and South Islands of New Zealand. 1. If we consider your Vehicle is economic to repair, we may a. arrange to repair your Vehicle, or b. pay the cost of repairs as estimated by our assessor. 2. If we consider your Vehicle is uneconomic to repair or if your Vehicle is stolen and not recovered, we may a. replace your Vehicle with a new vehicle of the same model and specification, if available in New Zealand, following an Event within 12 months of purchase new by you, or b. replace your Vehicle with an equivalent vehicle, if available in New Zealand, following an Event when your Vehicle is over 12 months old or if you did not purchase your Vehicle new, or c. pay the market value up to the current Sum Insured. 3. We will pay the market value at the time of the Event for any new parts, accessories or tools that are unobtainable in New Zealand but not more than the last selling or list price in New Zealand. AMI Businesspack Business Vehicles 1

6 4. If the Schedule names other interested parties we may a. get their agreement if replacing your Vehicle, or b. make any payment to them. 1. The Excess shown in the Schedule except when a. the only damage sustained by your Business Vehicle is breakage of glass in the windscreen or windows. b. the damage to your Business Vehicle is caused by an identified uninsured driver of another vehicle and we are satisfied full liability is admitted by or established against that driver. 2. Loss of use, depreciation, wear and tear. 3. Mechanical or electrical breakdowns, failures or breakages or damage to any engine or transmission system resulting from those breakdowns, failures or breakages. 4. Damage to tyres caused by braking or by punctures, cuts or bursts. Section 2 Liability 1. Legal liability for a. accidental loss of or damage to anyone else s property, or b. accidental Injury to any person arising in connection with i. your Vehicle, including the loading and unloading of your Vehicle; ii. any trailer or caravan attached to your Vehicle; 2. The legal liability of a. any other person; b. your employee for i. accidental loss of or damage to anyone else s property, or ii. accidental Injury to any person arising in connection with the use of your Vehicle, including the loading and unloading of your Vehicle, or any trailer or caravan attached to your Vehicle in connection with your business by any person in your employment provided i. such use has your permission. ii. such person or employee shall meet all the terms limitations and exceptions under the Policy that you have to observe, fulfil and comply with. iii. the liability is not insured under any other policy. 3. Your legal liability arising out of the use of your Vehicle in such a manner as would void this indemnity provided that such use was without your knowledge or the knowledge of any senior officer controlling the use of such vehicle. We shall be entitled to exercise our subrogation rights against any person responsible for such use of your Vehicle and you shall give all information and assistance as we may require. 1. For liability for loss of or damage to property we will pay up to $20,000,000 for any one Event including costs and expenses incurred with our approval or awarded against you by a Court. 2. For liability for Injury we will pay up to $2,000,000 for any one Event including costs and expenses incurred with our approval or awarded against you by a Court. 3. We may pay the full amount under this Section for any claim or series of claims arising from one Event and give up any claim defence or proceedings. 1. Liability for loss of or damage to property owned by you or anyone we insure under this Part who claims under this Section. 2. Liability for loss of or damage to property in your care or in the care of anyone we insure under this Part who claims under this Section other than for a. a disabled motor vehicle being towed without charge by any vehicle insured; b. clothing, personal effects and personal luggage being carried by any vehicle insured that belongs to a passenger in the vehicle. 3. Liability for loss of or damage to any property being carried by or loaded into or loaded from any vehicle insured (other than property as set out in Paragraph 2 above). 4. Liability for loss of or damage to any property caused by vibration or the weight of any vehicle insured. 5. Liability for loss of or damage to underground installations of any description caused by the use of any vehicle insured. 6. Liability arising while in transit between the North and South Islands of New Zealand if the person in charge of any vehicle insured did not comply with all the requirements of the carrier. 7. Liability for Injury to a. you or any person who lives with you or any member of your family or any person you have a business relationship with; b. any person or persons we insure who claim(s) under this Section or anyone who lives with them or any member of their family or any person they have a business relationship with. 8. Liability for Injury covered by the Injury Prevention, Rehabilitation and Compensation Act 2001 or any Act in substitution therefor. 9. Any fine, penalty, punitive or exemplary damages. 10. Any consequent damage, loss, liability or consequent costs incurred by you or any other person after we have paid the full amount of our liability under Paragraph 3 of The Amounts We Will Pay. AMI Businesspack Business Vehicles 2

7 Section 3 Transport costs 1. Reasonable costs incurred following an Event for which a claim is payable under Section 1 for a. transport by rail or bus from the place where the Event happened to your home or normal place of business in New Zealand or to your next immediate destination in New Zealand for i. you, ii. your employee(s) if such persons are prevented from returning in the vehicle to their home or normal place of business as a result of the Event. b. returning your Vehicle to your place of business in New Zealand or to another place you and we both agree upon after your Vehicle has been repaired. 2. Reasonable costs incurred for the return of your Vehicle to the place from where it was stolen or to another place you and we both agree upon when it is recovered following theft or conversion. Expenses covered by the Injury Prevention, Rehabilitation and Compensation Act 2001 or any Act in substitution therefor. We will pay the actual reasonable costs incurred up to $2,000 for any one Event. Section 4 Defence costs for a charge of manslaughter Your legal costs incurred for defending a charge of 1. manslaughter, or 2. reckless or dangerous or careless driving causing death arising in New Zealand from a. you driving your Vehicle. b. your employee driving your Vehicle. c. any other person driving your Vehicle provided they have your permission. Any costs arising from a deliberate or wilful act. We will pay up to $2,000 for legal costs incurred for any one Event. Section 5 Removal of debris/hazardous substance Reasonable costs incurred following an Event for which a claim is payable under Section 1 for 1. removal of debris, including property carried by you as a load. 2. any charge made for a hazardous substance emergency pursuant to the Fire Service Act 1975 or any Act in substitution therefor. We will pay the actual reasonable costs incurred up to $10,000 for any one Event. Section 6 Vicarious liability Liability under Section 2 following an Event where any vehicle owned by your employee is being used in connection with your trade or business specified in the Schedule. Liability for loss of or damage to property owned by you or in your care or property owned or in the care of anyone we insure under this Section. Section 7 Protection against uninsured drivers If your vehicle is damaged in an accident caused by an identified, uninsured driver of another vehicle and full liability is admitted by or established against that driver we will a. not deduct the Excess or adjust your No Claim Rebate if a claim is payable under Section 1 or, b. indemnify you under Section 1 up to a maximum of $3,000 and not deduct the Excess or adjust your No Claim Rebate if cover for your vehicle applies under Section 2 only. AMI Businesspack Business Vehicles 3

8 For all sections you are not insured for 1. Any Event arising while any vehicle insured is being driven or used by you or by any authorised person who a. does not hold a licence required by law to drive the vehicle. b. does not comply with any limitation, term or condition of their driver s licence. Paragraph 1 will not apply i. if that person does not hold a licence but obtains a licence without a further driving test, or ii. if your Vehicle is being used for the purpose of teaching a learner to drive if all requirements of the law are being complied with; or iii. while the vehicle is parked, garaged or stored. 2. Any Event arising while any vehicle insured is being driven or used by any person who a. at the time of the Event has a proportion of alcohol in their breath or blood which exceeds the legal limit. b. in connection with the Event is convicted of failing or refusing to undergo a breath or blood test. c. at the time of the Event is under the influence of alcohol to such an extent as to be incapable of having proper control of the vehicle. This sub-section shall not apply if the person has a breath or blood test for alcohol. d. at the time of the Event is under the influence of a drug or substance to such an extent as to be incapable of having proper control of the vehicle. Paragraph 2 will not apply i. where the claim arises from theft or conversion of your Vehicle, or ii. while the vehicle is parked, garaged or stored. 3. Any Event arising while any vehicle insured is being driven or used by any person in an unsafe or unroadworthy condition where that condition causes or contributes to the Event and you or the driver could reasonably be expected to have been aware of that condition. ( Unsafe or unroadworthy condition includes any condition that may result in damage to the vehicle or any part of it.) 4. Any Event arising while any vehicle insured is either practising for or taking part in any race, rally, time trial, speed test, or used on any racetrack. 5. Any Event if your Vehicle or its engine has been modified since manufacture unless details of all the modifications have been given to us. 6. Legal liability arising out of a contract or agreement (except where you would have been liable even without such contract or agreement). This policy wording is subject to copyright. AMI Businesspack Business Vehicles AMI0545/1 08/14 4