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: UK COMMERCIAL ALL RISKS 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 Introduction This is a Chubb Commercial insurance policy. Please read the entire policy carefully. The various sections of this policy, together with the policy schedule and any endorsements explain the insurance cover. Words and Phrases that appear in bold print are defined in the definitions provisions in this policy. Words that start with a capital letter (aside from names etc.) are defined in the Schedule. Insuring Agreement: Chubb Insurance Company of Europe SE ( the Company ) agrees to provide the insurance described in each section of this insurance policy ( the Policy ) subject to the conditions detailed herein and payment of the premium set out in the Schedule. The proposal made by the Insured together with any additional information supplied to the Company on behalf of the Insured forms the basis of, and is part of this Policy. Please Note: All parts of this policy together with 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. Signed for the Company:. CCI/PMM/PDBI_UKPRD/05/1C CCIPMM061C Page 1 of 85

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4 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 shown in the Schedule. CCI/PMM/PDBI_UKPRD/05/1C CCIPMM061C Page 3 of 85

5 SECTION 1 EXTENSIONS 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 Insurance shown in the Schedule. ELECTRONIC DATA RECOMPILATION COSTS Cover under Section 1 is extended to include 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. LOSS PREVENTION EXPENSES Cover under Section 1 is extended to include the reasonable and necessary costs the Insured incurs to protect: Buildings; General Contents; or Research and development property, at the Insured Locations from imminent damage caused by or resulting from a cause not otherwise excluded. EUROPEAN COMMUNITY & PUBLIC AUTHORITIES (Including Undamaged Property) Cover under Section 1 includes 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, 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. (hereafter referred to as the Requirements ) in respect of damage to property insured, and undamaged portions thereof. CCI/PMM/PDBI_UKPRD/05/1C CCIPMM061C Page 4 of 85

6 This extension does not cover: 1. the cost incurred in complying with the Requirements: in respect of damage occurring prior to the granting of this extension; in respect of damage not insured by this policy; under which notice has been served upon the Insured prior to the happening of the damage; for which there is an existing requirement which has to be implemented within a given period; 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. Notwithstanding paragraph 1 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 insured property. CCI/PMM/PDBI_UKPRD/05/1C CCIPMM061C Page 5 of 85

7 Temporary Removal Cover under Section 1 is extended to include 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 Cover under Section 1 is extended to include valuable papers whilst temporarily removed to any building not occupied by the Insured and during inland transit anywhere within the Territorial Limits. Removal of Debris and Cleaning/Clearance of Drains Cover under Section 1 is extended to include 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 Contracting Purchaser s Interest If at the time of damage the Insured has contracted to sell its interest in any 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. CCI/PMM/PDBI_UKPRD/05/1C CCIPMM061C Page 6 of 85

8 Acquisitions Cover under Section 1 is extended to include any newly acquired or constructed property insured at a new location. 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, of full particulars. The cover will end when: the Insured provides particulars and the Company agrees to add such property to this Policy; 60 days pass from the date of acquisition or completion; or this Policy expires, whichever occurs first. The Company may charge additional premium from the date of acquisition or completion. This Extension does not apply to damage caused by or resulting from flood. Capital Additions Cover under Section 1 is extended to include, in so far as the same are not otherwise Insured: any newly acquired machinery and plant or newly constructed buildings, and alterations additions and improvements to buildings subsequent to a certificate of completion, alterations additions and improvements to machinery and plant, 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 Insurer s liability and to effect specific insurance before the expiry of the Period of Insurance and to pay an additional premium on demand. Inadvertent Omissions 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 immediately. CCI/PMM/PDBI_UKPRD/05/1C CCIPMM061C Page 7 of 85

9 Replacement of Locks Cover under Section 1 is extended to include costs incurred as a result of the necessary replacement or adjustment of locks at an Insured Location following theft from such location. Cover under this extension is in addition to the applicable Limit of Insurance. Leasehold Buildings Extension Cover under Section 1 is extended 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 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. This insurance shall not be brought into contribution with any cover granted by the Underlying Policies other than in respect of any excess over and above the sums insured, limits or cover applicable under such Policies. Undamaged Tenants Improvements and Betterments Cover under section 1 is extended 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. Theft Damage to Buildings Cover under Section 1 is extended to cover damage to the buildings at the Insured Locations occupied by the Insured for the Business (and are not otherwise insured) for which the Insured is responsible and which arises during the pursuance of theft or attempted theft thereat. Refilling of Fire Extinguishment Appliances If the property insured is damaged by a cause not otherwise excluded, the Company will pay expenses and charges made by any municipal agency charged with preserving public safety for which the Insured may be assessed in respect of refilling fire extinguishing appliances. Included in the Limit of Liability shown against Buildings, General Contents and Stock. CCI/PMM/PDBI_UKPRD/05/1C CCIPMM061C Page 8 of 85

10 Refrigerated Stock Cover under Section 1 is extended to include damage to refrigerated stock at the Insured Locations as a result of deterioration or putrefaction caused by: 1. A rise in temperature as a result of: breakdown of or damage to the refrigerator; non operation of any thermostatic or automatic controlling devices pertaining to the refrigerator; accidental failure of the public supply of electricity not occasioned by the deliberate act of the supply authority; 2. 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. Glass Cover under Section 1 is extended to provide costs to the Insured in respect of undamaged parts of the fixed glass in consequence of damage to a building. Exhibitions, Fair or Trade Shows Cover under Section 1 is extended to include stock and general contents whilst at any exhibition, fair or trade show and including transit to and from such exhibitions, fairs, tradeshows and Insured Locations. This extension does not cover: electronic data processing equipment; electronic data processing media; fine art; and damage to property insured while left unattended. CCI/PMM/PDBI_UKPRD/05/1C CCIPMM061C Page 9 of 85

11 Property at Unspecified Locations Cover under Section 1 is extended to include stock and general contents whilst at any locations 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 locations, whilst in transit; or 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. Automatic Reinstatement of Loss 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. 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 to apportion in the event of damage caused by or resulting from a cause not otherwise excluded at the Insured Locations as follows: Fine Art The Company will pay for Fine Art. Leasehold Interest 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 resulting from a cause not otherwise excluded at an Insured Location. CCI/PMM/PDBI_UKPRD/05/1C CCIPMM061C Page 10 of 85

12 Processing Water 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 resulting from a cause not otherwise excluded. Trees, Shrubs, Plants or Lawns The Company will pay for damage to trees, shrubs, plants or lawns at an Insured Location caused by or resulting from listed perils. Deferred Payments 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 in respect of stock sold and delivered (or 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,. Pairs and Sets 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 which is part of the same product. Trace and Access The Company will pay the costs incurred with the consent of the Company to detect the point of escape of substances which have caused damage to property insured. Arson or Theft Reward The Company will pay a reward for information leading to a conviction in respect of arson, theft or vandalism of property insured. Municipal Agency, Fire Brigade Charges and Extinguishing Expenses. If the property insured is damaged by a cause not otherwise excluded, the Company will pay fire brigade charges and other extinguishing expenses and other charges made by any municipal agency charged with preserving public safety for which the Insured may be assessed including replacing sprinkler heads. CCI/PMM/PDBI_UKPRD/05/1C CCIPMM061C Page 11 of 85

13 Research and Development Property The Company will pay for damage to property insured resulting from a cause not otherwise excluded and the necessary and reasonable additional cost the Insured incurs to repair or replace research and development property. These additional costs must be in excess of the cost the Insured would incur to repair or replace research and development property that suffers damage in order to meet the last scheduled introduction date (prior to damage) for any new product which is based on such research and development property. CCI/PMM/PDBI_UKPRD/05/1C CCIPMM061C Page 12 of 85

14 SECTION 1 SPECIAL CONDITIONS - VALUATION REINSTATEMENT CONDITIONS In the event of the damage to the property insured under Section 1 (other than Stock), 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 than its condition when new, or Where property insured is damaged, 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 Special Provisions 1. 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. 2. 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. 3. No payment beyond the amount which would have been payable under this Section 1 if this condition had not been incorporated therein shall be made until the cost of reinstatement has actually been incurred. 4. 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. 5. 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 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/PMM/PDBI_UKPRD/05/1C CCIPMM061C Page 13 of 85

15 DAY ONE BASIS (Non Adjustable) If the buildings or general contents items in the Schedule to this Policy show declared values and Sums Insured, then the insurance provided by this Policy on the said buildings or general contents shall be on a Day One Reinstatement basis. Limits of Liability are the declared values 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. Stock In the event of damage to stock the basis upon which the amount payable by the Company is to be calculated shall be: 1. 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 2. 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 : the outstanding capital value of the damaged or lost property as recorded in the Insured s books, or the cost of material of like kind and quality less allowance for physical deterioration, physical depreciation, obselence or depletion the actual cash value, whichever is less. CCI/PMM/PDBI_UKPRD/05/1C CCIPMM061C Page 14 of 85

16 Computer Betterment In the event that new computer property of like kind and quality is not obtainable, computer property 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. Contract Price 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 conditions wholly or to the extent of the damage, the amount that the Company will pay shall be based on the contract price. Brands or Trademarks 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 stock 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. Professional Fees 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/PMM/PDBI_UKPRD/05/1C CCIPMM061C Page 15 of 85

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18 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. Loss shall be calculated: in accordance with the Basis of Settlement; and subject to the Maximum Indemnity Period, shown as applicable in the Schedule. BASIS OF SETTLEMENT Gross Profit Loss will be calculated by: 1. applying the rate of gross profit to the difference between turnover during the indemnity period and the standard turnover; 2. subtracting any amount by which the insured has reduced the loss by incurring increased cost of working which, but for that expenditure, would have taken place during the indemnity period; 3. adding the increased cost of working which, but for that expenditure, would have taken place during the indemnity period, but only to the extent such reduction in turnover is reduced; and 4. subtracting any sum saved during the indemnity period in respect of such of the charges and expenses of the 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. CCI/PMM/PDBI_UKPRD/05/1C CCIPMM061C Page 17 of 85

19 Gross Revenue Loss will be calculated by: 1. Determining the difference between gross revenue during the indemnity period and the standard gross revenue; 2. subtracting any amount by which the insured has reduced the loss by incurring increased cost of working which, but for that expenditure, would have taken place during the indemnity period; 3. adding the increased cost of working which, but for that expenditure, would have taken place during the indemnity period, but only to the extent such reduction in gross revenue is reduced; and 4. subtracting any sum saved during the indemnity period in respect of such of the charges and expenses of the Business payable out of gross revenue as may cease or be reduced in consequence of damage. Additional Increase in Cost of Working Loss will be calculated by determining the additional increase in cost of working in excess of the amount payable under 1-4 above (as applicable) necessarily incurred during the indemnity period for the sole purpose of: 1. avoiding or diminishing a: Reduction in turnover, if gross profit is the applicable Basis of Settlement; or Reduction in gross revenue, if gross revenue is the applicable Basis of Settlement; or Reduction in rent receivable, if rent receivable is the applicable Basis of Settlement. 2. resuming or maintaining normal business operations. Rent Receivable Loss will be calculated by: 1. Determining the difference between rent receivable during the indemnity period and the standard rent receivable; 2. subtracting any amount by which the insured has reduced the loss by incurring increased cost of working which, but for that expenditure, would have taken place during the indemnity period; 3. adding the increased cost of working which, but for that expenditure, would have taken place during the indemnity period, but only to the extent such reduction in rent receivable is reduced; and CCI/PMM/PDBI_UKPRD/05/1C CCIPMM061C Page 18 of 85

20 4. subtracting any sum saved during the indemnity period in respect of such of the charges and expenses of the Business payable out of rent receivable as may cease or be reduced in consequence of damage. Research and Development Expenditure Loss will be calculated as follows: 1. In respect of Annual Research Establishment Expenditure: For each working week in the indemnity period during which the activities of the Business are, in consequence of the damage: totally interrupted or totally given over to the re-working of projects affected by the damage, the insured amount per week; partially interrupted or partially given over to the reworking of projects affected by the damage, an equitable proportion of the insured amount per week based upon the time rendered ineffective by reason of the damage. 2. increased cost of working 3. Any reduction in the amount of grants, endowments and other financial contributions made to the insured pursuant to written agreements, in effect at the inception of this policy, to further research and development operations, provided that the insured: reports the value of such agreements to the company prior to the inception of this policy; reports the value of any agreements executed after inception of this policy within 90 days of their execution; reports any amendment to such agreements that change the value of such agreements within 90 days of the execution of such amendments; and continues the research and development operations. 4. Less any sum saved during the indemnity period in respect of research establishment expenditures as may cease or be reduced in consequence of the damage. CCI/PMM/PDBI_UKPRD/05/1C CCIPMM061C Page 19 of 85

21 SECTION 2 EXTENSIONS 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 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 shown in the Schedule, as follows: Denial of Access Any property within 1 (one) mile 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 supply undertaking from which the Insured obtains electricity, gas or water or telecom services. Suppliers and Customers The premises of any of the Insured s direct suppliers, manufacturers or processors of components, goods or materials (excluding the public supply undertakings for gas electricity water and telecommunications services), and premises of the Insured s direct customers. 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. Unspecified Locations Any location not shown in the Schedule at which the Insured s property is stored. This extension does not apply to locations of the insured s customers or suppliers. Property in Transit Property insured whilst in transit by road, rail or inland waterway, excluding damage to refrigerated goods as a result of breakdown or failure of refrigerated equipment unless such breakdown or failure is caused by fire collision or overturning of a road vehicle or railway train. Property insured whilst temporarily housed in the course of transit for the purpose of storage, making up, packing or processing. This extension does not apply if the insured is acting as a carrier for hire. CCI/PMM/PDBI_UKPRD/05/1C CCIPMM061C Page 20 of 85

22 Public Utilities 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; Water works and pumping stations of any public water supply undertaking; or Land based premises of any public telecommunications undertaking, from which the Insured obtains electricity, gas, water or telecommunications services, or the pipes or cables conveying such services (whilst at the site of the utility) from those undertakings to the Insured Locations within the Territorial Limits. For the avoidance of doubt this extension does not apply to damage at or to any over-head and underground communication, transmission or distribution equipment conveying services to the Insured Locations. 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, as follows: Restrictions on the Use of the Insured s Locations The intervention of a public body authorised to restrict or deny access to the Insured Locations arising from: notifiable disease attributable to food or drink supplied from the location, or the discovery of an organism likely to cause notifiable disease; vermin or pests; an accident causing defects in the drain or other sanitary arrangement; 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 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, CCI/PMM/PDBI_UKPRD/05/1C CCIPMM061C Page 21 of 85

23 repair, replacement, and recall or checking of property. For the purposes of this Extension only the Maximum Indemnity Period is amended to mean the period beginning twenty-four hours after the time from which the restriction on the Insured Locations are applied and ending not later than three months thereafter, during which period the results of the business shall be affected. 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 the 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 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 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/PMM/PDBI_UKPRD/05/1C CCIPMM061C Page 22 of 85

24 Advance Business Interruption Damage by a cause not otherwise excluded to: the contract works at a project site for the occupation of the Insured excluding: o o defective design materials or workmanship; damage directly resulting from testing proving operation or use of the contract works other than damage occasioned by fire. contractor s plant and equipment whilst in use on the Insured Location. machinery and plant and materials forming part of the contract works for use in connection with the Insured Location and whilst in transit between the suppliers and the Insured Location (excluding contractors plant and equipment). machinery and plant and materials in use at the Insured Location in connection with the contract works caused by or resulting from a defined peril at the premises of manufacturers or suppliers of machinery and plant and materials where similar property is stored, all for use in connection with a project site at the Insured Location. Under this extension, loss will be calculated by: estimating turnover and rate of gross profit based upon the anticipated production programme of the Business and costs and prices relating thereto after due allowance for the trend in the business; 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 which, but for that expenditure, would have taken place during the indemnity period; adding the increased cost of working which, but for that expenditure, would have taken place during the indemnity period, 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 Business payable out of gross profit as may cease or be reduced in consequence of the damage. CCI/PMM/PDBI_UKPRD/05/1C CCIPMM061C Page 23 of 85

25 Accounts Receivable 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. Accountants Fees 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 Companys 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. Contractual Penalties The Company will pay for the fines and 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. CCI/PMM/PDBI_UKPRD/05/1C CCIPMM061C Page 24 of 85

26 SECTION 2 SPECIAL CONDITIONS Alternative Trading If during the indemnity period goods shall be sold or services rendered elsewhere than at the Insured Locations for the benefit of the 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 profits; or gross revenue, if the applicable Basis of Settlement is gross revenue, during the indemnity period. Renewal The Insured shall, prior to each expiration, provide the Company with the estimated gross profit/revenue for the financial year most nearly concurrent with the ensuing year of insurance. Professional Accountants 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. Payments on Account In the event of loss the Company may at their discretion and if requested by the Insured, make payments on account during the indemnity period. Value Added Tax To the extent that the Insured is accountable to the tax authorities for Value Added Tax the Policy shall be exclusive of such tax. Accumulated Stock 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. Salvage Sale 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 CCI/PMM/PDBI_UKPRD/05/1C CCIPMM061C Page 25 of 85

27 Premium Adjustment The first and annual premiums are provisional and are based upon the estimated gross profit or revenue. 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 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 as applicable, 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 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 revenue for the current period the Company will allow a pro rata return premium not exceeding 50% premium paid on the estimated gross profit or revenue. greater than the estimated gross profit or revenue for the current period, the Insured shall pay a pro rata addition to the premium paid on the estimated gross profit or revenue. CCI/PMM/PDBI_UKPRD/05/1C CCIPMM061C Page 26 of 85

28 SECTION 3 MONEY If shown as operative in the Schedule the Company will pay for damage occurring during the Period of Insurance to money caused by or resulting from a cause not otherwise excluded. In no event shall the Company s liability exceed in respect of any item insured the Limit of liability shown in the Schedule. Insured Location in the buildings at the Insured Locations or, at any of the Insured s contract sites during business hours or, in residences of the Insured s principals, directors and employees or, in a bank night safe until removed by a bank official or, in transit in the personal custody of the Insured s principals, directors or employees, or of an approved security organisation. Extensions The Company will pay for damage other than by an excluded cause to: any safe strong room or franking machine the property of the Insured or for which they are responsible, any container or waistcoat whilst being used for carrying money as a result of theft or attempted theft of money unless such damage is otherwise Insured damage to clothing and personal effects of any director, partner or employee of the Insured resulting from an assault in an attempt to steal money all within the Territorial Limits. CCI/PMM/PDBI_UKPRD/05/1C CCIPMM061C Page 27 of 85

29 Personal Accident Assault In addition to the Limits of Liability stated in the Schedule, the Company will pay the relevant sum stated in the schedule if any director, partner or employee suffers physical injury as described below as a direct result of robbery or attempted robbery in the course of the Business physical injury which within 24 months from its occurrence is the sole and direct cause of: loss of one or more limbs by physical separation at or above the wrist or ankle, permanent and total loss of use of one or more limbs by physical separation at or above the wrist or ankle, or total and irrecoverable loss of sight in one or both eyes. Physical injury which within 24 months from its occurrence is the sole and direct cause of: any director, partner or employee of the Insured being totally disabled and prevented from attending to his occupation. Compensation for the period of such disablement (but not exceeding 104 weeks Limit of Liability) is shown in the Schedule. SECTION 3 SPECIAL CONDITIONS 1. It is a condition precedent to any liability of the Company under this Section that out of business hours the keys to all safes and strong rooms in which money is kept shall be removed from the Insured Location by the Insured or persons authorised by the Insured and retained in their custody. 2. The Insured person shall act upon medical or surgical advice as soon as practicable and submit to medical examination at the Company expense and as often as they require. 3. The Insured shall take all reasonable care for the safety of the money insured and in the selection and supervision of employees. 4 It is a condition precedent to liability under this Section that money in transit, other than transit by an accredited security organisation, will be accompanied by two able-bodied employees of the insured for amounts between 2500 and 10,000. Subject to the terms and conditions of this policy amounts in excess of 10,000 must be carried by an accredited security organisation approved by the Company. If the applicable limit of liability exceeds 10,000 no person or organisation other than an accredited security organisation may carry amounts in excess of 10,000. SECTION 3 EXCLUSIONS CCI/PMM/PDBI_UKPRD/05/1C CCIPMM061C Page 28 of 85

30 In addition to the exclusions contained in the General Exclusions of this Policy, this Section will not cover: 1. loss or shortage due to errors or omissions in receipts or payments, accountancy depreciation, currency fluctuations, or interruption of any kind; 2. any loss resulting directly or indirectly from forgery, fraudulent alteration or substitution, or fraudulent use of a computer or electronic transfer; 3. loss resulting from use of any form of payment which proves to be counterfeit, false, fraudulent, invalid, uncollectible, or irrecoverable for any reason; 4. loss from an unattended vehicle; 5. any loss arising from fraud or dishonesty of any employee of the Insured: unless such loss is discovered within seven working days after occurrence of the fraudulent or dishonest act; or covered by a policy of fidelity guarantee insurance. Where a policy of fidelity guarantee has been purchased the Company will not be liable for any such loss under this Policy. 6. loss from any safe or strong room outside of business hours unless the keys thereof are removed from the Insured Location; 7. extortion, kidnap or ransom; 8. manuscripts, media tapes and other records of money; 9. loss of income, interest or dividends; 10. any unauthorised representation of the Insured. CCI/PMM/PDBI_UKPRD/05/1C CCIPMM061C Page 29 of 85

31 SECTION 4 PROPERTY IN TRANSIT If shown as operative in the Schedule the Company will pay for damage to the property insured whilst in transit by road rail or inland waterway including loading and unloading and temporary housing in course of transit within the Territorial Limits. The Company will also pay the reasonable cost incurred in: conveyance of the property insured and its container to another vehicle following the disabling of the original conveying vehicle by its catching fire, collision or overturning including delivery to original destination or return to point of despatch; reloading the property insured and its container in the event of its falling from the conveying vehicle; clearance of the debris of the property insured and its container following its damage or destruction provided that this cost is not recoverable under another policy or from any other source. CCI/PMM/PDBI_UKPRD/05/1C CCIPMM061C Page 30 of 85

32 SECTION 4 EXCLUSIONS In addition to the exclusions contained in the General Exclusions of this Policy, this section does not cover damage to property insured in transit: by air or sea; resulting from atmospheric or climatic conditions unless reasonable precautions have been taken to protect the property insured against such conditions; arising as a result of packing being inadequate to withstand normal handling during transit or due to insufficient labelling or incorrect addressing; carried by the Insured for hire or reward unless the Insured is contractually responsible for damage occurring to such property insured; by theft or attempted theft from any vehicle whilst the vehicle is unattended by the driver or mate unless all windows, doors and other means of access are fully closed, fastened and, where possible, locked and all keys are removed from the vehicle to a place of safety; which is contract works property; which is money whilst in transit or property which is insured by, or would but for the existence of this policy be insured by, any marine policy(ies). The Company will not be liable for any business interruption loss. The liability of the Company under this extension in respect of any one transit shall not exceed the Limit of Liability shown in the Schedule. REINSTATEMENT CONDITIONS In the event of the damage to the property insured under Section 4, other than stock, 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, its replacement by similar property in either case in a condition equal to but not better or more extensive than its condition when new, or Where property insured is damaged, 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 Special Provisions 1. The work of reinstatement (which may at the Company s option be CCI/PMM/PDBI_UKPRD/05/1C CCIPMM061C Page 31 of 85