CHUBB INSURANCE COMPANY OF EUROPE SE

Transcription

1 CHUBB INSURANCE COMPANY OF EUROPE SE 106 Fenchurch Street, London EC3M 5NB, England Telephone: +44 (0) Facsimile: +44 (0) Website: TELECOMMUNICATIONS PACKAGE INSURANCE POLICY CHUBB INSURANCE COMPANY OF EUROPE SE Registered Office: 106 Fenchurch Street, London, EC3M 5NB, United Kingdom. A European company incorporated in England & Wales registered under company number SE13. Authorised and regulated by the Financial Services Authority.

2 This page has been left blank intentionally

3 How to read your Telecommunication Package Your Package is made up of the following covers: Policy Schedule Operative Parts The Policy Schedule provides key details about your policy including: your name; address; period of insurance; premium; parts / sections operative; limits; territorial limits; excess / deductible apportionment (if applicable) specification The various covers in this Package contain descriptions of the insurance cover provided therein. Each contains the grant of cover, together with any extensions, exclusions, conditions or definitions applicable to that cover. The Covers are arranged as follows: Part 1 Property Insurance Part 2 Commercial Liability Insurance Part 3 Professional Indemnity Part 4 Commercial Employee Fidelity Insurance Part 5 Cancellation of Event Insurance Part 6 Marine Insurance CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 1 of 176

4 This page has been left blank intentionally CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 2 of 176

5 Introduction This is a Chubb Telecommunication Package. Please read the entire policy carefully. Insuring Agreement Chubb Insurance Company of Europe SE (the Company ) agrees to provide the covers described in each Part of this insurance policy (the Policy ) subject to the following conditions: the Insured must pay or have paid the premium set out in the Schedule. the information contained in any proposal made by the Insured together with any information supplied to the Company on behalf of the Insured form the basis of and are part of this Policy. Please Note All parts of this Package, including the Schedule and any endorsements, shall be read together and considered as one contract. The operative Sections of this Policy are indicated in the Schedule. Unless a particular Section is identified in the Schedule as operative, it is of no effect and no cover is granted under it. Words that appear in bold print are defined in the Definitions. IN RESPECT OF PART 3 PROFESSIONAL INDEMNITY POLICY, COVER IS PROVIDED ON A CLAIMS MADE AND REPORTED BASIS. SAVE AS OTHERWISE STIPULATED, IT APPLIES ONLY IN RESPECT OF CLAIMS FIRST MADE AGAINST THE INSURED AND REPORTED TO THE COMPANY DURING THE PERIOD OF INSURANCE. PLEASE ENSURE YOU READ AND UNDERSTAND THE CLAIMS CONDITIONS CONTAINED THEREIN. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 3 of 176

7 PROPERTY INSURANCE Part 1 of this Telecommunication Package is as follows: Section 1 Property Damage Section 2 Business Interruption Section 3 Telecommunication Property Section 4 Research & Development Operations Section 5 Impairment of Computer Services Section 6 Money Section 7 Property in Transit Section 8 Contractors All Risks Section 9 Machinery Breakdown Section 10 Computer Breakdown Section 11 UK Terrorism Exclusions Conditions Definitions CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 5 of 176

9 PROPERTY INSURANCE Section 1 PROPERTY DAMAGE The Company will pay for damage occurring during the Period of Insurance to property insured at or within 250 metres of an Insured Location shown in the Schedule caused by or resulting from a cause not otherwise excluded. At the Company s option, the Company shall either: pay the value of the property insured (or any part of it that sustains damage) at the time of the damage having regard to physical deterioration, physical depreciation, obsolescence or depletion; or reinstate or replace the property insured (or any part of it that sustains damage). The most the Company will pay is the applicable Limit of Insurance or aggregate per occurrence limit shown in the Schedule. Section 1 Loss Prevention Expenses European Community & Public Authorities (Including Undamaged Property) EXTENSIONS TO COVER Where shown in the Schedule as operative, the following extensions of cover are provided under Section 1 of this Policy, subject to the applicable Limits of Liability or aggregate per occurrence limit shown in the Schedule. Cover under Section 1 is extended to include: The reasonable and necessary costs incurred by the Insured to protect: Building; or General Contents at the Insured Locations from imminent damage caused by or resulting from a cause not otherwise excluded. To the extent possible, the Insured must notify the Company of their intent to incur such costs before any loss prevention action is taken. In any event, the Insured must notify the Company within 48 hours after having taken any loss prevention action. Such additional costs of reinstatement of property insured that suffers damage as may be incurred solely by reason of the necessity to comply with the requirements of: European Community Legislation; or Building or other Regulations made pursuant to any Act of Parliament or Bye-Laws of any Public Authority; or the Company requiring conformity to the applicable Sprinkler Rules of an automatic sprinkler installation which conformed to the applicable Rules when installed but fail to conform to subsequent amendments to those Rules CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 7 of 176

10 European Community & Public Authorities (Including Undamaged Property) Continued (hereafter referred to as the Requirements ) in respect of damage to property insured; and undamaged portions thereof This extension does not cover: 1. the cost incurred in complying with the Requirements: 1.1 in respect of damage occurring prior to the granting of this extension; 1.2 in respect of damage not insured by this Policy; 1.3 under which notice has been served upon the Insured prior to the happening of the damage; 1.4 for which there is an existing requirement which has to be implemented within a given period; or 1.5 in respect of property entirely undamaged 2. the additional cost that would have been required to make good the property which has sustained damage to a condition equal to its condition when new had the necessity to comply with the Requirements not arisen 3. the amount of any charge or assessment arising out of capital appreciation which may be payable in respect of the property or by the owner thereof by reason of compliance with the Requirements. Undamaged Portions Notwithstanding paragraph 1.5 above, cover under this extension shall include the additional cost of reinstatement as described herein in respect of undamaged portions of the property insured provided that: The Company will not pay for such additional cost in respect of any property insured, which has not sustained damage; the amount recoverable shall not exceed in respect of undamaged portions of property insured (other than foundations), more than 15% of the total amount which the Company would have paid had the property insured been totally lost or destroyed. Special Conditions applicable to this provision The work of reinstatement must be commenced and carried out with reasonable despatch and in any case must be completed within twelve months after the damage or within such further time as the Company may (during the said twelve months) in writing allow, and may be carried out wholly or partially upon another site (if the Requirements necessitate); In no event will the Company pay more than the applicable Sum Insured for such property insured. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 8 of 176

11 Temporary Removal Property insured (other than stock) whilst temporarily removed from an Insured Location for cleaning renovation, repair or similar purposes, and during inland transit to and from such Insured Location within the Territorial Limits. Temporary Removal of Valuable Papers Valuable papers whilst temporarily removed to a building not occupied by the Insured and during inland transit anywhere within the Territorial Limits. Removal of Debris and Cleaning/Clearance of Drains Costs and expenses (unless separately insured) necessarily incurred by the Insured, with the consent of the Company, in: removing debris, dismantling and/or demolishing, shoring up or propping up of the portion or portions of the property insured which have sustained damage; clearing, cleaning and repairing drains gutters sewers and the like on the Insured s property blocked or damaged as a result of damage by a defined peril. This extension does not cover costs or expenses: incurred in removing debris except from the Insured Location and within 250 metres thereof; arising from pollution or contamination of property not insured by this Policy Capital Additions In so far as the same are not otherwise insured: (a) any newly acquired machinery and plant or newly constructed building; (b) alterations additions and improvements to a building subsequent to a certificate of completion; (c) alterations additions and improvements to personal property; (d) alterations additions and improvements to electronic data processing equipment at the Insured Locations but not in respect of any appreciation in value during the current Period of Insurance, provided that the Insured undertakes to give particulars within 60 days of commencement of the liability of the Company to effect specific insurance and before the expiry of the Period of Insurance and to pay an additional premium on demand. Newly Acquired Property Any newly acquired or constructed property insured at a new location within the Territorial Limits. Such cover shall be effective from the date of acquisition or completion or from the date the Insured first acquires an insurable interest, whichever is the sooner. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 9 of 176

12 Newly Acquired Property Continued The cover will end when the first of the following occurs: the Insured provides full particulars and the Company agrees to add such property to this Policy; 60 days pass from the date of acquisition or completion by the Insured; or this Policy expires, The Company may charge an additional premium from the date of acquisition or completion by the Insured if such premises or property is added to this Policy. This Extension does not apply to damage caused by or resulting from flood. Property insured being moved from vacated premises to new premises is not considered newly acquired property. Contracting Purchaser s Interest Inadvertent Omissions Replacement of Locks Leasehold Premises Extension If at the time of damage the Insured has contracted to sell its interest in a building, and the purchase has not been but shall thereafter be completed, the purchaser, on completion of the purchase (if and so far as the property is not otherwise Insured against such damage by them or on their behalf), shall at the option of the Insured be entitled to benefit under this Policy for such damage without prejudice to the rights and liabilities of the Insured or the Company until completion. The Insured having notified the Company of the Insured s intention to insure all property in which they are interested and it being their belief that all such property is insured, if any such property shall be found to have been inadvertently omitted, the Company will deem it to be insured within the terms of this Policy subject to payment of the premium on all such property as from the inception of this Policy, or from the date of the Insured s interest in such property if it is constructed or purchased after the inception of this Policy provided that as soon as the Insured is aware of such error or omission, it declares full details to the Company. Costs incurred as a result of the necessary replacement or adjustment of locks at an Insured Location following burglary or larceny from such location. Cover under this extension is in addition to the applicable Limit of Insurance. To protect the interest of the Insured as tenant in respect of damage to any building leased or rented by the Insured but only: to the extent that the insurance provided by this Policy is broader in meaning or scope than any other Policy of insurance covering such building arranged by or on behalf of the landlord or lessor (any such Policy being hereafter referred to in this Extension as the Underlying Policy ); In the event of the failure of the landlord or lessor to maintain insurance on such building or the failure of the Underlying Policy to operate due to any act of omission unknown to or beyond the control of the Insured. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 10 of 176

13 Leasehold Premises Extension Continued Undamaged Tenants Improvements and Betterments Burglary Damage to Buildings Refilling of Fire Extinguishment Appliances Refrigerated Stock Glass Exhibitions, Fair or Trade Shows This insurance shall not be brought into contribution with any cover granted by the Underlying Policy other than in respect of any excess over and above the sums insured, limits or cover applicable under such Policy. To provide the value of undamaged tenants improvements and betterments when the Insured s lease is cancelled: by the lessor; and by a valid condition of the Insured s lease, in consequence of damage to a building or general contents or tenants improvements and betterments. To cover damage to a building at the Insured Locations occupied by the Insured for the business (which is not otherwise insured) for which the Insured is responsible and which arises during the pursuance of burglary or attempted burglary. If the property insured sustains damage by a cause not otherwise excluded, the Company will pay expenses and charges for which the Insured may become liable to pay to any organisation responsible for preserving public safety in respect of the cost of refilling fire extinguishing appliances. To include damage to refrigerated stock at the Insured Locations as a result of deterioration or putrefaction caused by: a rise in temperature as a result of: (a) breakdown of or damage to the refrigerator; (b) non operation of any thermostatic or automatic controlling devices pertaining to the refrigerator; (c) accidental failure of the public supply of electricity not occasioned by the deliberate act of the supply authority action of refrigerant fumes escaping from the refrigerator This extension does not cover damage caused by any wilful act or wilful neglect by the insured or any director partner or employee of the Insured. The reasonable and necessary costs incurred by the Insured in respect of undamaged parts of the fixed glass in consequence of damage to a building. Stock and general contents whilst at any exhibition, fair or trade show including whilst in direct transit to and from the exhibition, fair or trade show venue. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 11 of 176

14 Exhibitions, Fair or Trade Shows Continued Unspecified Locations Installation Automatic Reinstatement of Loss This extension does not cover: electronic data processing property which is not permanently secured to and fully integrated into an exhibit or exhibition stand; fine art; and damage to property insured whilst in or on an unattended vehicle. Stock and general contents whilst at any locations within the Territorial Limits not shown in the Schedule. This extension does not apply to stock and general contents: at any exhibition, fair or trade show; at any newly acquired premises; whilst in transit; at a job site or temporarily warehoused elsewhere awaiting installation at the job site; temporarily removed from an Insured Location for cleaning, renovation, repair or similar purposes; or which is deeds or documents otherwise insured. No payment will be made for damage caused by or resulting from larceny. Stock and general contents whilst at a job site or temporarily warehoused elsewhere awaiting and during installation, awaiting and during tests or awaiting acceptance by the buyer. No payment will be made for: contractors equipment; or stock or general contents not a part of or destined to become part of the installation Cover ends when the first of the following occurs: the Insured s interest in the stock or general contents ceases; the buyer accepts the stock or general contents; the stock or general contents are put to use for its intended purpose; 30 days pass from the date of completion of the installation; or the Policy is terminated. In the absence of written notice by the Company to the contrary, the insurance by this Section shall not be reduced by the amount of any loss. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 12 of 176

15 SPECIAL PROPERTY BASKET Cover under Section 1 is extended by the Special Property Basket. This is a Special Limit of Insurance that the Insured may elect at its discretion to apportion between the following heads of cover: Fine Art The Company will pay for damage to fine art at an insured location caused by or resulting from a cause not otherwise excluded. Leasehold Interest Processing Water Trees, Shrubs, Plants or Lawns Deferred Payments Pairs and Sets The Company will pay for the bonus payment, prepaid rent, sublease profit, tenants lease interest loss incurred by the Insured directly resulting from the cancellation of the Insured s written lease for an Insured Location shown in the Schedule, provided that the cancellation of the lease is: by the lessor; by a valid condition of the Insured s lease; and due to damage to a building caused by or resulting from a cause not otherwise excluded at an Insured Location. The Company will pay the cost to the Insured to replace water that is used in the insured s processing operations and contained in any: above-ground tank; processing equipment; or any associated above-ground piping when such water has been released or rendered unuseable for its intended purpose as a direct result of damage to such tank, equipment or piping caused by or resulting from a cause not otherwise excluded. The Company will pay for damage to trees, shrubs, plants or lawns at an Insured Location caused by or resulting from fire or explosion. The Company will pay to the Insured the difference between the amount owed to the Insured less the market value of the stock following damage caused by or resulting from a cause not otherwise excluded in respect of stock sold and delivered (or in transit) to a customer of the Insured under a credit agreement or instalment or deferred payment plan where, in consequence of damage to such stock, the customer has refused to make payment. The Company will pay for the reduced value of undamaged stock that is part of the Insured s product or any product in the Insured s care custody or control which has become unmarketable as a complete product because of damage to stock caused by or resulting from a cause not otherwise excluded which is part of the same product. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 13 of 176

16 Trace and Access Arson or Theft Reward The Company will pay the costs incurred with the consent of the Company to detect the point of escape of substances, which have caused or resulted in damage to property insured by a cause not otherwise excluded. The Company will pay a reward for information leading to a conviction in respect of arson, burglary, larceny or vandalism of property insured. Municipal Agency, Fire Brigade and Public Safety Service Charges If the property insured sustains damage caused by or resulting from a cause not otherwise excluded, the Company will pay fire brigade charges and other extinguishing expenses and other charges made by any municipal agency or local authority responsible for preserving public safety for which the Insured may be assessed including replacing sprinkler heads. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 14 of 176

17 SPECIAL CONDITIONS SECTION 1 VALUATION Reinstatement Conditions In the event of damage to the property insured under Section 1 (other than stock and electronic data), the basis upon which the amount payable under this Section is to be calculated shall be the cost of: where property insured is destroyed or lost, the rebuilding of the property if a building or in the case of other property its replacement by similar property in either case in a condition equal to but not better or more extensive then its condition when new; or where property insured sustains damage, the repair of the damage and the restoration of the damaged portion of the property to a condition substantially the same as but not better than or more extensive than its condition when new. Subject to the following Special Provisions: The work of reinstatement (which may at the Company s option be carried out upon another site and in any manner suitable to the requirements of the Insured, subject to the amount that the Company will pay not being thereby increased) must be commenced and carried out with reasonable despatch otherwise no payment, beyond the amount which would have been payable under Section 1 if this condition had not been incorporated shall be made. When any property insured is lost or damaged in part only, the amount that the Company will pay shall not exceed the sum representing the cost, which the Company could have been called upon to pay for reinstatement if such property insured had been wholly destroyed. No payment beyond the amount which would have been payable under Section 1 if this condition had not been incorporated therein shall be made until the cost of reinstatement has actually been incurred. Where by reason of any of the above special provisions no payment is to be made beyond the amount which would have been payable under Section 1 if this condition had not been incorporated therein, the rights and liabilities of the Company and the Insured in respect of the damage shall be subject to the terms and conditions of the Section as if this condition had not been incorporated. No payment beyond the amount which would have been payable under Section 1 if this condition had not been incorporated shall be made if the property insured at the time of its damage shall be insured by any other insurance effected by or on behalf of the Insured which is not upon the same basis of reinstatement. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 15 of 176

18 Day One Basis (Non Adjustable) Stock Electronic Data Recompilation Costs If the building or general contents items in the Schedule to this Policy show declared value and Sums Insured, then the insurance provided by this Policy on the said building or general contents shall be on a Day One Reinstatement basis. The Limit of Liability of the Company is the declared value plus a percentage increase as agreed between the Insured and the Company. Special Provisions: 1. The Insured having stated in writing the declared value of property insured (other than stock or merchandise motor vehicles personal effects or pedal cycles) the premium has been calculated accordingly. 2. At the inception of each Period of Insurance, the Insured shall notify the Company of the declared value of the property insured. In the absence of such declaration, the last amount declared by the Insured shall be taken as the declared value for the ensuing annual period of insurance. 3. Where by reason of any of Special Provisions 1 & 2 above no payment is to be made beyond the amount which would have been payable under Section 1 if this condition had not been incorporated therein, the rights and liabilities of the Company and the Insured in respect of the damage will be subject to the terms and conditions of the Section as if this memorandum had not been incorporated therein except that the sums insured shall be limited to % of the declared value. In the event of damage to stock the basis upon which the amount payable by the Company is to be calculated shall be: The cost to repair or replace stock at the time of damage with material of like kind and quality less allowance for physical deterioration, physical depreciation, obselence or depletion; or In the event that the stock is unrepairable or totally destroyed or lost, and the Insured elects not to replace the property, the Company will pay: (a) the outstanding capital value of the damaged or lost property as recorded in the Insured s books; or (b) the cost of material of like kind and quality less allowance for physical deterioration, physical depreciation, obselence or depletion of the actual cash value, whichever is less. In the event of damage to electronic data the basis upon which the amount payable by the Company is to be calculated shall be the cost incurred by the Insured of reproducing any electronic data contained on any electronic data processing media. Such costs shall include all reasonable and necessary amounts, but shall not exceed that amount shown in the Schedule in recreating, gathering and assembling such electronic data. However, this Policy does not insure any amount pertaining to the value of such electronic data to the Insured or any other party, even if such electronic data cannot be recreated, gathered or assembled. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 16 of 176

19 General Contents and Stock not Owned by the Insured Computer Betterment Contract Price Brands or Trademarks Professional Fees General contents and stock not owned by the Insured (but which if owned by the Insured would be deemed to be general contents or stock) is valued on the same basis as general contents or stock, subject to all other Policy terms and conditions, but the company will not pay more than the amount for which the Insured is contractually liable. Labour, materials and services furnished or arranged by the insured on general contents or stock not owned by the insured is valued based on the actual cost of the labour, materials and services. In the event that new electronic data processing equipment of like kind and quality is not obtainable, equipment which is as similar as possible to that which has sustained damage and which is capable of performing the same function shall be deemed to be new property of like kind and quality and in no event shall this be considered as betterment to the Insured. In respect only of stock sold but not delivered for which the Insured is responsible subject to a sale contract which following damage is cancelled by reason of its condition wholly or to the extent of the damage, the liability of the Company shall be based on the contract price. In case of damage to stock bearing a brand or trademark or which in any way carries or implies the guarantee of the responsibility of the manufacturer or Insured, the salvage value of such damaged property insured shall be determined after removal at the Company s expense in the customary manner of all such brands or trademarks or other identifying characteristics. It is understood that such salvage if any shall be dealt with in agreement with the Insured. In the event of damage to property insured, the basis upon which the amount payable by the Company is to be calculated shall include the cost of Architects, Consulting Engineers, Legal, and other Professional Fees necessarily incurred by the Insured in the reinstatement of the property insured (other than stock) consequent upon its damage but not for preparing any claim under this Policy provided that the Insured includes these costs in the declared value at inception of the period of insurance. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 17 of 176

20 Section 2 BUSINESS INTERRUPTION COVER The Company will pay the amount of loss resulting from interruption of or interference with the Business carried on by the Insured at the Insured Locations consequent upon damage to property insured at or within 250 metres of the Insured Locations caused by or resulting from a cause not otherwise excluded that occurs during the Period of Insurance, provided that cover under this Section 2 is stated as being operative in the Schedule, and subject to the applicable limits of liability or aggregate per occurrence limit. Loss shall be calculated: in accordance with the Basis of Settlement; subject to the Maximum Indemnity Period; and after application of the appropriate deductible, time franchise or waiting period shown as applicable in the Schedule BASIS OF SETTLEMENT Gross Profit Gross Revenue Loss will be calculated by: applying the rate of gross profit to the difference between turnover during the indemnity period and the standard turnover; subtracting any amount by which the Insured has reduced the loss by incurring increased cost of working; adding the increased cost of working, but only to the extent such reduction in turnover is reduced; and subtracting any sum saved during the indemnity period in respect of such of the charges and expenses of the Insured s business payable out of gross profit as may cease or be reduced in consequence of the damage. If the Insured holds a salvage sale during the indemnity period, the turnover from the salvage sale shall be deducted from any reduction in turnover. Loss will be calculated by: determining the difference between gross revenue during the indemnity period and the standard gross revenue; subtracting any amount by which the insured has reduced the loss by incurring increased cost of working; adding the increased cost of working, but only to the extent such reduction in gross revenue is reduced; and subtracting any sum saved during the indemnity period in respect of such of the charges and expenses of the Insured s business payable out of gross revenue as may cease or be reduced in consequence of the damage. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 18 of 176

21 Rent Receivable Increased Cost of Working Additional Increased Cost of Working Flexible First Loss Limit (Gross Profit) Loss will be calculated by: determining the difference between rent receivable during the indemnity period and the standard rent receivable; subtracting any amount by which the insured has reduced the loss by incurring increased cost of working; adding the increased cost of working, but only to the extent such reduction in rent receivable is reduced; and subtracting any sum saved during the indemnity period in respect of such of the charges and expenses of the Insured s business payable out of rent receivable as may cease or be reduced in consequence of the damage. Loss will be calculated by determining the additional expenditure necessarily and reasonably incurred for the sole purpose of minimising any interruption to or interference with the Insured s business during the Indemnity period but not exceeding the sum produced by applying the rate of gross profit or gross revenue (whichever is applicable) to the amount of the reduction thereby avoided. Such additional expenditure shall include the cost of moving to and from and the additional rent of temporary premises, additional rates and taxes thereon and expenses incurred in equipping the said premises to make them suitable for the Insured s business, additional cost in respect of lighting, heating and water, additional cost in respect of additional staff and overtime. Loss will be calculated by determining the additional increased cost of working in excess of the amount payable under the gross profit or gross revenue basis above (whichever is applicable) necessarily incurred during the indemnity period for the sole purpose of : avoiding or diminishing: (a) a reduction in turnover, if gross profit is the applicable Basis of Settlement; or (b) a reduction in gross revenue, if gross revenue is the applicable Basis of Settlement; or (c) a reduction in rent receivable, if rent receivable is the applicable Basis of Settlement resuming or maintaining normal business operations. Loss will be calculated as any combination of: Gross Profit; and Additional Increased Cost of Working as defined herein. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 19 of 176

22 Flexible First Loss Limit (Gross Revenue) Loss will be calculated as any combination of: Gross Revenue; and Additional Increased Cost of Working as defined herein. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 20 of 176

23 Section 2 EXTENSIONS TO COVER Where shown in the Schedule as operative, cover under Section 2 is extended to include loss resulting from the interruption of or interference with the Insured s business in consequence of damage to property of a type insured by this Policy at the locations described below, caused by or resulting from a cause not otherwise excluded that occurs during the Period of Insurance, subject always to the applicable Limit of Liability or aggregate per occurrence limit shown in the Schedule, as follows: Denial of Access Suppliers and Customers Unspecified Locations Any property within one (1) kilometre of any insured location which shall prevent or hinder the use of the Insured Location or access thereto. This extension shall not apply to property of any: public supply undertaking from which the Insured obtains gas, water and electricity services; and telecommunication service provider. The premises of any of the Insured s direct customers, suppliers, manufacturers or processors of components, goods or materials excluding the premises of any: public supply undertaking from which the Insured obtains gas, water and electricity services; and telecommunication service provider For the purposes of this extension, suppliers of Specified Suppliers, manufacturers or processors and customers of Specified Customers of the Insured shall be considered Unspecified Suppliers or Unspecified Customers. This extension does not cover any loss, expense or business interruption resulting or arising from damage to property of a type insured by this Policy at the premises of any supplier or customer of the Insured outside the UK caused by or resulting from flood, earthquake or windstorm. Any location not shown in the Schedule at which the Insured s property is stored. This extension does not: cover any loss, expense or business interruption resulting or arising from damage to property of a type insured by this Policy at unspecified locations outside the UK caused by or resulting from flood, earthquake or windstorm; or apply to locations of the Insured s customers, suppliers, manufacturers or processors of components, goods or materials. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 21 of 176

24 Property in Transit Public Utilities Telecommunication Service Provider Property insured whilst: in transit by road, rail or inland waterway, excluding damage to frozen or refrigerated goods as a result of breakdown or failure of refrigeration equipment unless such breakdown or failure is caused by fire collision or overturning of a road vehicle or railway train; and temporarily housed in the course of transit for the purpose of storage, making up, packing or processing caused by or resulting from a defined peril This extension does not apply: if the Insured is acting as a carrier for hire; or to stock and general contents temporarily warehoused elsewhere awaiting and during installation. Property at any: Generating station or sub-station of any public electricity supply undertaking; Land based premises of any public gas supply undertaking or of any natural gas producer linked directly therewith; or Water works and pumping stations of any public water supply undertaking from which the Insured obtains electricity, gas or water or the underground pipes or underground cables conveying such services from those undertakings to the Insured s Premises within the Territorial Limits. For the avoidance of doubt this extension does not apply to damage at or to: property at the premises of any telecommunication service provider; or overhead communication, transmission or distribution equipment, including the overhead lines or overhead cables conveying services to the Insured s premises. Property at the premises of any telecommunication service provider or the underground cables conveying such services from those undertakings to the Insured s Premises within the Territorial Limits. For the avoidance of doubt this extension does not apply to damage at or to overhead communication, transmission or distribution equipment, including the overhead lines or overhead cables conveying services to the Insured s premises. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 22 of 176

25 Where shown in the Schedule as operative, cover under Section 2 is extended to include loss resulting from the interruption of or interference with the Business, subject always to the applicable Limit of Liability, if any, or aggregate per occurrence limit as follows: Restrictions on the Use of the Insured s Premises The intervention of a public body authorised to restrict or deny access to the Insured s locations arising from: notifiable disease attributable to food or drink supplied from the location, or 1.2 the discovery of an organism likely to cause notifiable disease; 2. vermin or pests; 3. an accident causing defects in the drain or other sanitary arrangement; 4. an enforcement action taken in the United Kingdom under the Food Safety Act 1990 against products of the Insured which subsequent analysis establishes are not contaminated and are safe for human consumption; or 5. Murder or suicide other than by the Insured, or any Director or Officer of the Insured leading to restriction or denial of the use of the location on the order or advice of the local health authority or other competent authority. Cover under this Extension does not include the costs incurred in cleaning, repair, replacement, and recall or checking of property. For the purposes of this Extension only, the Indemnity Period shall be 3 months. It is a condition precedent to any claim relating to closure or restrictions on the use of the Insured locations due to Legionnaires Disease that the Insured has carried out tests for Legionnaires Disease at the appropriate intervals with satisfactory results. For the purposes of 4 above, the amount payable under this extension shall be the sale value of all products of the Insured which cannot be produced or sold in consequence of the enforcement action, less: any sum saved in respect of such of the charges and expenses of the Insured s business as may cease or be reduced in consequence of the enforcement action; and any sum payable to the insured as compensation under the terms of the Food Safety Act or otherwise The amount payable will be reduced by any sum saved in respect of such of the charges and expenses of the Insured s business as may cease or be reduced in consequence of the enforcement action and any amount awarded as compensation within the terms of United Kingdom legislation. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 23 of 176

26 Accounts Receivable Accountants Fees Contractual Penalties Automatic Reinstatement of Loss Damage to the Insured s books of account or other business books or records resulting in the inability to trace or establish outstanding debit balances in whole or in part. The amount payable under this extension shall be the total of sums due to the Insured from customers, less the amount of any such sum evidenced by records not damaged or otherwise established or collected by the Insured, and an amount to allow for probable bad debts which would normally have been uncollectible by the Insured. On hire purchase and deferred payment accounts receivable, unearned interest and service charges shall be deducted. The Company will pay for the reasonable charges payable by the Insured to their professional accountants for producing such particulars or details or any other proofs, information or evidence as may be required by the Company under the terms of this Policy and reporting that such particulars or details are in accordance with the Insured's books of account or other business books or documents The Company will pay for the fines and damages (excluding liquidated damages) that the Insured shall be legally liable to pay for breach of a written contract for non-completion or late completion or orders incurred solely in consequence of the damage. In the absence of written notice by the Company to the contrary, the insurance by this Section shall not be reduced by the amount of any loss. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 24 of 176

27 Section 2 Alternative Trading Renewal Professional Accountants Payments on Account Value Added Tax Accumulated Stocks SPECIAL CONDITIONS If during the indemnity period goods shall be sold or services rendered elsewhere than at the Insured locations for the benefit of the Insured s business either by the Insured or by others on their behalf, the money paid or payable in respect of such sales or services shall be brought into account in arriving at the: turnover, if the applicable Basis of Settlement is gross profit; or gross revenue, if the applicable Basis of Settlement is gross revenue, during the indemnity period. The Insured shall, prior to expiry, provide the Company with the estimated gross profit or estimated gross revenue (whichever is applicable) for the financial year most nearly concurrent with the ensuing year of insurance. Any particulars or details contained in the Insured's books of account or other business books or documents which may be required by the Company under the claims conditions of this Policy for the purpose of investigating or verifying any claim hereunder, may be produced by professional accountants if at the time they are regularly acting as such for the Insured, and their report shall be prima facie evidence of the particulars and details to which such report relates. In the event of loss the Company may in their discretion and if requested by the Insured, make payments on account during the indemnity period. To the extent that the Insured is accountable to the tax authorities for Value Added Tax the Policy shall be exclusive of such tax. In adjusting any loss, account shall be taken, and an equitable allowance made, if any reduction in turnover due to the damage is postponed by reason of the turnover being temporarily maintained from accumulated stocks of finished goods in warehouses or depots. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 25 of 176

28 Premium Adjustment The first and annual premiums are provisional and are based upon the estimated gross profit or estimated gross revenue (whichever is applicable) Not later than six months after the expiry of each Period of Insurance the Insured shall provide the Company with a declaration, confirmed by the Insured s auditors, of gross profit or gross revenue (whichever is applicable) earned during the financial year most nearly concurrent with such Period of Insurance If any damage has occurred giving rise to a claim for loss of gross profit or gross revenue (whichever is applicable) that is indemnified under this Policy, the above mentioned declaration shall be increased by the Company for the purposes of premium adjustment by the amount by which the gross profit or gross revenue (whichever is applicable) was reduced during the financial year solely in consequence of the damage. If the declaration (adjusted as provided for above, and proportionally increased where the Maximum Indemnity Period exceeds twelve months) is: less than the estimated gross profit or estimated gross revenue (whichever is applicable) for the relative period of insurance the Company will allow a pro rata return premium not exceeding 50% of the premium paid on the estimated gross profit or estimated gross revenue (whichever is applicable); or greater than the estimated gross profit or estimated gross revenue (whichever is applicable) for the relative period of insurance, the Insured shall pay a pro rata addition to the premium paid on the estimated gross profit or estimated gross revenue (whichever is applicable) CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 26 of 176

29 Section 3 TELECOMMUNICATION PROPERTY Subject to an applicable Limit of Insurance being shown in the Schedule the Company will pay for: 3.1 damage to: cell site property; underground communication lines; overhead communication lines; or submarine communication lines which have been declared to the Company and which are: (a) occupied by the Insured; or (b) utilised by the Insured in connection with the business. 3.2 the amount of business interruption loss resulting from interruption or interference with the business carried on by the Insured consequent upon such damage occurring during the period of insurance Loss will be calculated: in respect of item 3.1 in accordance with the Basis of Settlement contained herein; and in respect of item 3.2: in accordance with the coverage afforded by this Policy and the basis of settlement set out in Section 2 in respect of: (a) gross revenue; or (b) flexible first loss limit (gross revenue); or (c) increased cost of working; or (d) additional increased cost of working subject to the appropriate Maximum Indemnity Period; and after application of the appropriate deductible, time franchise or waiting period shown as applicable in the Schedule. The most the Company will pay is the applicable Limit of Insurance or aggregate per occurrence limit shown in the Schedule. Section 3 EXCLUSIONS In addition to the exclusions contained in the Excluded Causes Section of the Policy this Section will not cover loss or damage caused by or resulting from: the weight of snow or ice on overhead communication lines. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 27 of 176

30 Section 3.1 Reinstatement Conditions BASIS OF SETTLEMENT In the event of the destruction or loss of the telecommunications property the basis upon which the amount payable under this Section is to be calculated shall be the cost of: where cell site property is destroyed or lost: (a) the rebuilding of the property if a building or towers or antennae; or (b) in the case of other cell site property its replacement by similar property in either case to a condition equal to but not better or more extensive then its condition when new, or where communication lines sustain damage, the repair of the damage and the restoration of the damaged portion of the property to a condition substantially the same as but not better than or more extensive than its condition when new. Subject to the following Special Provisions: The work of reinstatement (which may at the Company s option be carried out upon another site and in any manner suitable to the requirements of the Insured, subject to the liability of the Company not being thereby increased) must be commenced and carried out with reasonable despatch otherwise no payment, beyond the amount which would have been payable under Section 3 if this condition had not been incorporated, shall be made. When any telecommunications property is lost or damaged in part only, the amount that the Company will pay shall not exceed the sum representing the cost, which the Company could have been called upon to pay for reinstatement if such telecommunications property had been wholly destroyed. No payment beyond the amount which would have been payable under Section 3 if this condition had not been incorporated therein shall be made until the cost of reinstatement has actually been incurred. Where by reason of any of the above special provisions no payment is to be made beyond the amount which would have been payable under Section 3 if this condition had not been incorporated therein, the rights and liabilities of the Company and the Insured in respect of the damage shall be subject to the terms and conditions of the Section as if this condition had not been incorporated. No payment beyond the amount which would have been payable under this section if this condition had not been incorporated shall be made if the telecommunications property at the time of its damage shall be insured by any other insurance effected by or on behalf of the Insured which is not upon the same basis of reinstatement. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 28 of 176

31 Day One Bases (Non Adjustable) General Contents at Cell Site Premises not Owned by the Insured Computer Betterment Professional Fees If the cell site property item in the Schedule to this Policy shows declared value and Sums Insured, then the insurance provided by this Policy on the said cell site property shall be on a Day One Reinstatement basis. Limits of Liability are the declared value plus a percentage increase as agreed between the Insured and the Company. Special Provisions The Insured having stated in writing the declared value of the cell site property the premium has been calculated accordingly. At the inception of each Period of Insurance, the Insured shall notify the Company of the declared value of the cell site property. In the absence of such declaration, the last amount declared by the Insured shall be taken as the declared value for the ensuing annual period of insurance. Where by reason of any of Special Provisions 1 & 2 above no payment is to be made beyond the amount which would have been payable under Section 3 if this condition had not been incorporated therein, the rights and liabilities of the Company and the Insured in respect of the damage will be subject to the terms and conditions of the Section as if this memorandum had not been incorporated therein except that the sums insured shall be limited to % of the declared value. General contents at a cell site premises not owned by the Insured (but which if owned by the Insured would be deemed to be general contents) is valued on the same basis as general contents at a cell site premises, subject to all other Policy terms and conditions, but the company will not pay more than the amount for which the Insured is contractually liable. Labour, materials and services furnished or arranged by the insured on general contents at cell site premises not owned by the insured is valued based on the actual cost of the labour, materials and services. In the event that new electronic data processing equipment at a cell site premises of like kind and quality is not obtainable, equipment which is as similar as possible to that which has sustained damage and which is capable of performing the same function shall be deemed to be new property of like kind and quality and in no event shall this be considered as betterment to the Insured. In the event of damage to telecommunications property, the basis upon which the amount payable by the Company is to be calculated shall include the cost of Architects, Consulting Engineers, Legal, and other Professional Fees necessarily incurred by the Insured in the reinstatement of the telecommunications property consequent upon its damage but not for preparing any claim under this Policy provided that the Insured includes these costs in the declared value at inception of the period of insurance. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 29 of 176