Public and Products Liability Claims Made Insurance (UK)
Significant Policy Cover Changes Your policy has been revised as a response to a need to update and/or clarify cover. The undernoted summarizes the changes relating to this revision as it impacts the standard policy form. We recognise that some policyholders may previously have been issued with not the preceding policy version but an even earlier version of this insurance. Therefore in addition to listing the changes made to this new current version of your policy we also set out the changes made when the preceding version of the policy was released. This document does not reflect specific customer modifications to the policy as confirmed by any schedule or endorsement. Current new version changes to your policy P LCM090913 Public, Products and Pollution liability insured sections Rectification of defective work Clause amended to explain that we do not pay for rectification of your work carried out as part of the work undertaken or damage to any property forming part of the work undertaken until such property is handed over and subsequent activities at the site cause damage. Aircraft products Modified so that this exclusion only applies if the liability for defective products relates to flight safety. Pollution insuring clause Clause re-phrased so as to clarify that both the injury/damage and the polluting incident must take place during the period of insurance. Environmental statutory damage Clause re-phrased so as to remove any ambiguity that the cover does not respond to pollution or contamination clean up to your own land. This restriction extends to exclude preventative costs unless spent to prevent further pollution extending to third party property. Contractual liability Whilst this clause extends cover to include indemnities given under contract the clause has been modified to explain that cover does not extend beyond the indemnity stated under the insuring clause. So indemnities agreed by you under contract that go beyond your policy cover are not insured. Principals As with the contractual liability the indemnity to principal does not extend beyond the cover granted by the policy. Statutory defence costs The clause has been amended to make clear that cover for these costs is contingent upon our prior consent so as to ensure that such costs are reasonable in the circumstances and related to an insured injury. We have also introduced a Statutory defence costs exclusion (no longer limited to just manslaughter costs) so that the buyback of cover by this clause may be sub-limited as shown in your schedule. In addition we have removed the overlap cover for general prosecution costs and NLCM090913 Page 2 of 6
manslaughter prosecution costs. Prosecution costs arising from manslaughter now only form part of the manslaughter limit. Aircraft The word spacecraft has been added to this exclusion. Costs of recall or guarantee This clause has been revised to remove any doubt that it also excludes the cost of recall or repair where the insured product forms part of or is an ingredient in any other product. Deliberate acts A rider has been added to clarify that we do not intend to exclude individual insured parties who are innocent. Employment disputes The wording has been re-phrased to clarify the nature of employment law violations that are excluded. Financial loss Rephrased and re-styled to ensure that covers granted elsewhere in the insuring sections are not inadvertently excluded. Disputed defence or appeal The requirement to refer defence dispute decisions to Queens Counsel has been changed to refer to a solicitor with 20 years experience in the field of insurance law. Definitions of deductible or excess Revised so that the amount of the deductible or excess will apply to either each claim or to each occurrence as confirmed in the schedule. General terms and conditions 2013 revision Non-disclosure and misrepresentation The legal and regulatory landscape in this area is also evolving. The Consumer Insurance (Disclosure and Representation) Act 2012, which came into force on 6 April 2013, abolished basis clauses in consumer policies, while the Financial Ombudsman Service (FOS) has customarily disapplied 'basis of contract' clauses when adjudicating micro-business disputes. In addition, the Law Commission is now recommending a similar reform in business insurance contracts and is likely to propose an abolition of basis clauses in its draft Bill which is expected in December 2013. Given the impending legal changes and in consideration of feedback from the market, QBE is now able to clarify its position with regard to basis of contract, fraud, non-disclosure and misrepresentation clauses. Our new material inaccuracy clause addresses these issues and has been prepared with the anticipated recommendations of the Law Commission's final report firmly in mind. Sanctions Following a review of HM Treasury s criticism of market wordings we considered that our current clause is not fully compliant. This has been revised. NLCM090913 Page 3 of 6
Our regulator and other compliance changes The financial services regulator has changed both its structure and name. These changes take effect from the 1st April 2013 and insurers are required to amend all documentation to show the new details. These compliance changes do not affect your policy cover. For QBE and depending upon which member of our group provides your insurance this means changing our regulatory status to: QBE Insurance (Europe) Limited QBE Insurance (Europe) Limited (registered in England number 1761561; Home State - United Kingdom. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority; registration number 202842) QBE Casualty Syndicate 386 QBE Casualty Syndicate 386 managed by QBE Underwriting Limited (company number 01035198, Home State - United Kingdom. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority; registration number 204858). QBE Syndicate 1886 QBE Syndicate 1886 is managed by QBE Underwriting Limited (company number 01035198, Home State - United Kingdom. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority; registration number 204858) Financial Services Compensation Scheme (FSCS) Coincidental with this change the Financial Services Compensation Scheme (FSCS) have moved address Complaints Our contact details in relation to complaints needed revision. Data Protection Act 1998 We have taken the opportunity to review and rename our Data Protection Act 1998 statement in anticipation of future EU Regulations. Preceding version changes to your policy P LCM080811 Public, products and pollution liability 2012 revisions Advertising liability The term advertising liability caused some confusion as to what exactly was intended. In reality QBE only covered libel and slander. Thus this term has been deleted from the insuring clause and now appears as an exclusion. Libel and slander liability remains covered and forms part of the definition of personal injury. Overseas visits Cover for temporary business trips overseas has been extended to apply to the employee s family. Materials not yet installed This exclusion has been separated from the Work Away clause but fundamentally has not changed and continues to exclude damage to materials prior to and during installation NLCM090913 Page 4 of 6
Rectification of defective work exclusion Again this exclusion has been separated from the Work Away clause and re-phrased. Legionella We have elected to remain silent as regards legionella. This has the effect of transferring cover from claims made to losses occurring basis under the public liability section. In addition, a clause granting run off cover has being provided to avoid a gap in coverage if the previous policy provided the cover on a claims made basis. Environmental Liability Extension There is a clarification that we give cover for preventative costs but is restricted to those circumstances where a pollution event has already occurred. Preventative costs are covered only to prevent or limit further pollution damage to third party property Motor Liability (loading/unloading) This coverage is no longer restricted to the driver and attendant (and there is a clarification that the extension does not apply to damage to the property being loaded or unloaded). Motor Liability (movement) We have now included an extension for the unauthorised movement of third party vehicles. Motor contingent Liability This extension is now widened from the UK to anywhere in the EU. Statutory defence Costs Defence costs have been segmented into three being those for manslaughter, prosecution costs and other statutory defence costs. Each has its own sub-limit of indemnity which is costs inclusive. The sub-limits are shown in the schedule Deliberate acts The deliberate acts exclusion is now stated not to apply to personal injury resulting from the use of reasonable force to protect persons or property. Heat work The distinction between high hazard hot work e.g. oxyacetylene, electric arc and similar welding on the one hand and other forms of heat has been removed. Thus the heat condition precedent now applies equally to all forms of heat work away from the premises. Revisions to general terms and conditions 2012 Sub-limits Sub-limits previously shown within the text of the policy wording are now moved to the schedule. Excess We have clarified that where more than one excess can apply to a claim, only one excess (the highest amount) will actually apply; also that the excess applies to defence costs (other than adjusters fees) as well as to damages. Observance We have clarified the different remedies available for the insurer if there is a breach of a condition by the insured as opposed to a breach of a condition precedent. NLCM090913 Page 5 of 6
Claims notification There is some clarification to the notification requirements, for example for certain items required to be notified within 48 or 72 hours, these have now been amended to 3 working days. Non-disclosure The text for basis of information at inception has been deleted. Non-disclosure and misrepresentation now form part of the Fraud, non-disclosure or misrepresentation clause. The effect is to change the implied condition of warranting the truth to one of voidable at our option or to a condition precedent to liability depending upon whether the wrong was fraudulent or otherwise. Sanctions A clause has now been introduced to preclude coverage where the operation of the coverage would be in breach of legal sanctions. Employers Liability Tracing Office This new clause describes the regulatory requirement for information on the Insured and its insured subsidiaries to be supplied to the Employers Liability Tracing Office. Claims and suits All mentions of suits are now removed as it is thought unnecessary to have both words. Defence costs There is evidence that cover for defence costs is being exploited to pay unnecessary but exceptional high legal rates. Whilst these costs have always been incurred with our prior consent we have deleted the qualification which will not be unreasonably withheld so that QBE has greater control over such expenditure. Fees for HSE Intervention The policy was previously silent as regards to fees for intervention. These fees are now expressly excluded but in exceptional circumstances cover may be provided by endorsement on case by case basis. As with all aspects of the standard policy cover it is generally possible to negotiate extensions of cover with the underwriter. NLCM090913 Page 6 of 6
QBE European Operations Plantation Place 30 Fenchurch Street London EC3M 3BD tel +44 (0)20 7105 4000 fax +44 (0)20 7105 4019 enquiries@uk.qbe.com www.qbeeurope.com QBE European Operations is a trading name of QBE Insurance (Europe) Limited, no.01761561 ('QIEL'), QBE Underwriting Limited, no. 01035198 ('QUL'), QBE Management Services (UK) Limited, no. 03153567 ('QMSUK') and QBE Underwriting Services (UK) Limited, no. 02262145 ('QSUK'), whose registered offices are at Plantation Place, 30 Fenchurch Street, London, EC3M 3BD. All four companies are incorporated in England and Wales. QIEL and QUL are Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. QUL is a Lloyd's managing agent. QMSUK and QSUK are both Appointed Representatives of QIEL and QUL.