W.R. Berkley Insurance (Europe), Limited

Transcription

1 W.R. Berkley Insurance (Europe), Limited Contractors Plant & Equipment Insurance Policy IMPORTANT NOTICE TO THE INSURED This insurance is a legal contract. Please read it carefully to ensure that it is in accordance with your requirements and that you understand its terms and conditions. The Insurance Broker or other intermediary who arranged this insurance should be contacted immediately if any correction is necessary. Your attention is particularly drawn to the notice that appears overleaf. Registered Office: 2 nd Floor, 40 Lime Street, London, EC3M 7AW Registered in England & Wales

2 NOTICE TO THE INSURED It is always our intention to provide a first class standard of service. However, if you have any cause for complaint or you wish to make any enquiry regarding this insurance you should, in the first instance, contact the Insurance Broker or other intermediary who arranged this insurance for you. Alternatively you may contact ourselves at the following address: Compliance Officer, W.R. Berkley Insurance (Europe), Limited 2 nd Floor 40 Lime Street London EC3M 7AW If you are not satisfied with the way a complaint has been dealt with you have the right to request that the Financial Ombudsman Service ( FOS ) review your case. Their address is: Financial Ombudsman Service South Quay Plaza 183 Marsh Wall London E14 9SR Telephone: There are, however, some circumstances in which the FOS is not empowered to consider complaints. If you contact the FOS in respect of any complaints, this will not affect any rights you have in law.

3 W.R. Berkley Insurance (Europe), Limited Contractors Plant & Equipment Insurance Policy INDEX Item Page Preamble 4 Definitions 5 Cover 6 Limit of Liability 7 Memoranda 7-8 Special Conditions 9 General Conditions Claims Conditions Exclusions

4 Please read this Policy carefully to ensure that it meets your requirements. This policy the Schedule (including any schedule issued in substitution) and any Memoranda or Endorsements shall be read together as one document and shall be collectively referred to as the Policy. Any word or expression to which a specific meaning has been given in any part of this Policy shall bear such meaning wherever it appears. The Insured having paid or agreed to pay the Insurers will (subject to the terms definitions exclusions and conditions) provide the cover described in this Policy for the Period of Insurance stated in the Schedule and any subsequent period for which the Insured shall pay and the Insurers shall agree to accept the Premium. Provided that this Policy shall not be in force unless it has been initialled by an authorised official of the Company. Initialled 4

5 DEFINITIONS DAMAGE DAMAGE shall mean sudden and unforeseen physical loss destruction or damage Defereed Purchase Deferred Purchase shall mean an arrangement whereby the Insured enters into an agreement which entitles the Insured to defer payment for property for a period in excess of usual trade credit Property Property shall mean those items detailed in the Schedule Reinstatement Reinstatement shall mean a) where any item of Property suffers DAMAGE to the extent that it cannot be economically repaired replacement by new Property of equal performance and/or capacity or if such be impossible replacement by new Property having the nearest higher performance and/or capacity to the Property which has suffered DAMAGE b) where any item of Property otherwise suffers DAMAGE the repair of the DAMAGE and the restoration of the portion of Property suffering DAMAGE to a working condition substantially the same as but not better or more extensive than its condition when new Territorial Location As defined in the Schedule 5

6 COVER SECTION 1 DAMAGE TO OWNED PROPERTY In the event of DAMAGE (subject to any exclusions) to Property owned by or on Deferred Purchase or lease to the Insured happening during the Period of Insurance whilst situated or in transit anywhere within the Territorial Limits and at the time of such DAMAGE the Property a) is less than or equal to 18 months old from the date of sale as new the amount payable by the Insurers shall be Reinstatement b) is more than 18 months old from the date of sale as new the Insurers will pay to the Insured the value of the property at the time of the DAMAGE or the cost of repair of the DAMAGE to a condition substantially the same as but not better or more extensive than the condition at the time of the DAMAGE or at its option reinstate or replace such Property SECTION 2 DAMAGE TO OTHER PROPERTY In the event of DAMAGE (subject to any exclusions) to Property hired in by Insured, or Property for which the Insured is legally responsible to insure prior to the occurrence of any DAMAGE, happening during the period of Insurance whilst situated or in transit anywhere within the Territorial Limits the Insurers will pay to the Insured all sums which the Insured shall become legally liable to pay for a) DAMAGE to the Property hired in by the Insured, or Property for which the Insured is legally responsible b) hiring charges levied upon the Insured in consequence of such Damage 6

7 LIMIT OF LIABILITY The liability of the Insurers shall not exceed a) if Cover is provided by this Policy in respect of Section 1 the sums Insured stated in the Schedule or the balance of such Sums Insured remaining after deduction for any other DAMAGE occurring during the same Period of Insurance unless the Insurers shall have agreed to reinstate any such Sum Insured provided that the Property description is on a specified item basis otherwise b) if Cover is provided by this Policy in respect of section 1 and/or 2 in total in respect of any one incident of DAMAGE or series of incidents of DAMAGE from a common cause the Limit of Liability stated in the Schedule. Where the basis of payment is to be Reinstatement payment of Reinstatement shall not be made a) unless Reinstatement commences and proceeds without unreasonable delay b) until Reinstatement has been carried out If at the time of Reinstatement the sum representing 85% of the cost which would have been incurred in reinstating the whole of the Property exceeds the Sum Insured thereon at the commencement of any DAMAGE the liability of the Insurers shall not exceed that proportion of the amount of the DAMAGE which the Sum Insured shall bear to the sum representing the cost of reinstating the whole of the Property at that time In the event that the Insured consists of more than one party or legal entity the liability of the Insurers shall not exceed the amount for which the Insurers would have been liable had such DAMAGE been sustained by any one of the Insured parties or legal entities. MEMORANDA Legal Proceedings The Cover provided by this Policy is extended to include legal costs incurred in the defence of proceedings against the Insured provided that the written consent of the Insurers must be obtained before any costs are incurred and the Insurers shall be entitled to nominate a solicitor to represent the Insured Hiring out The Cover provided by this Policy is extended to include Property whilst hired out provided that a) the terms of any such hirings out covered by Section 1 are no less onerous than the recognised standard hire conditions in the territory concerned. b) the terms of any such hirings out covered by Section 2 are no less onerous than those terms under which the Property was hired in by the Insured Indemnity to Other Parties The cover provided by this Policy is extended to include the Insureds employer/purchaser/principal/financier/head contractor/property owner/other party solely to the extent required by the conditions of contract in force between the Insured and the employer/purchaser/principal/financier/head contractor/property owner/other party provided always that such employer/purchaser/principal/financier/head contractor/property owner/other party shall act as if they were the Insured observe fulfil and be subject to the terms exclusions and conditions of the Policy. Immobilised Property The cover provided by this policy is extended to include costs necessarily and reasonably incurred by the Insured to recover property which has become accidentally immobilised during normal operations other than by its own explosion mechanical or electrical breakdown failure breakage or derangement (including but not limited to DAMAGE caused by any failure to maintain the Property in accordance with the manufacturers recommendations 7

8 but not including DAMAGE caused by the error or omission of the driver(s) or operator(s) of the Property other than in respect of failure to maintain ) provided that a) the liability of the Insurers shall not exceed 25,000 in respect of all recoveries during any Period of Insurance b) such costs do not exceed the sum which would otherwise have been payable under the terms of this Policy had such costs not been incurred c) the Insurers shall not be liable in respect of DAMAGE in order to effect recovery of Property Premium Payment It is hereby understood and agreed that the premium for this Policy is due to Insurers within the Period as stated in the Schedule. Failure of Insurers to receive the premium will result in cancellation of this policy from inception 8

9 SPECIAL CONDITIONS Condition Precedent All of the Special Conditions are conditions precedent to the liability of the Insurers under this policy Cranes The Insured shall ensure that all crane operations are undertaken only on firm and level ground and that such items are in a blocked or stabilised position when performing such operations Jibs/Booms The Insured shall ensure that Jibs/ Booms on cranes or similar lifting appliances are lowered to ground level at the end of each working day and/or when such items are not in use Maintenance of Property The Insured shall ensure that all Property is operated and maintained in accordance with manufacturer s recommendations Overload Alarms The Insured shall ensure that all cranes are fitted with overload alarm systems and wind speed indicators and that such systems/ indicators are monitored in an operational working condition. Operators The Insured shall ensure that all operators of the Property are licensed to operate such Property in accordance with statutory regulations. In areas where there is no statutory requirement the operators must have completed the insured s internal training programme and in all cases have sufficient practical experience with proof of same being supplied to Insurers. Reasonable Precautions The Insured shall take all reasonable precautions to prevent DAMAGE. Special Precautions The Insured shall maintain the Property in an efficient condition and fit for its purpose and shall ensure that any Property requiring inspection or test under any statute or order or regulation shall be so inspected or tested 9

10 GENERAL CONDITIONS Alteration This Policy shall be avoided with respect to any of the Property in regard to which there is any alteration after the commencement of this Policy a) whereby the risk of DAMAGE is increased either temporarily or permanently or b) whereby the interest of the Insured ceases except by will or operation of law unless admitted by the Insurers in writing. Cross Liability Each of the parties comprising the Insured shall for the purpose of this Policy be considered as separate and distinct entity and the words the Insured shall be considered as applying to each such party in the same manner as if a separate insurance policy has been issued to each of them in its name alone. Provided that nothing in this clause shall be deemed to increase the limit of the Insurers Limit of Liability under this Policy in respect of each occurrence Declaration The Premium payable under this Policy is provisional (unless the Property insured is on an individual specified basis) and subject to adjustment At the end of each period of insurance the Insured shall declare to the Insurers the total new replacement value of all Property insured under Section 1 and hiring charges paid or due in respect of Property insured under Section 2.. The actual premium shall be calculated at the rates applicable on the amounts declared If the actual premium differs from the provisional premium the Insured shall pay or the Insurers shall refund a) 50 % of the difference in respect of Section 1 Property b) 100% of hire charges in respect of Section 2. Subject to a minimum retention by the Insurers of any minimum retained premium referred to in the schedule or 75% of the provisional premium whichever is the greater. Policy avoidable This Policy shall be avoidable in the event of misrepresentation or non disclosure in any material particular Right to Examine The Insurers representatives shall have the right to examine at all reasonable times any Property Cancellation Insurance may be terminated at any time at the request of the Inured in which case the Insurer will retain the customary short rate for the time the Policy has been in force. The Insurer may also cancel this Policy by sending ten days notice by registered letter to the Insured at the Insured s last known address. The Insured shall then be entitled to a rebate of premium for the unexpired Period of Insurance. Law & Jurisdication This Policy shall be governed by the law and jurisdiction of United Kingdom and/or Eire. Subrogation waiver The Insurer agrees to waive any rights and remedies or relief to which it may become entitled by subrogation against any Insured named or described by this Policy 10

11 This Subrogation Waiver extends to include all directors, officers, employees or servants of any of the Insured entities. Several Liability Notice The subscribing insurers obligations under contracts of insurance to which they subscribe are several and not joint and are limited solely to the extent of their individual subscriptions. The subscribing insurers are not responsible for the subscription of any co- subscribing insurer who for any reason does not satisfy all or part of its obligations 11

12 CLAIMS CONDITIONS ACTION BY THE INSURED All conditions set out below are deemed to be conditions precedent to the Insurer s Liability under this insurance. The Insured shall: (a) give as soon as reasonably practicable notice by telephone and in writing to the Insurer and at their own expense supply such proofs of claim as may be reasonably be required by the Insurer and any evidence and information that may be reasonably required by the Insurer for the purposes of investigating or verifying the claim and (if demanded) a statutory declaration of truth of the claim and any matters connected therewith details of all other insurances covering the event or part of it All conditions set out below are deemed to be conditions precedent to the Insurer s Liability under this insurance. The Insured shall: (a) give as soon as reasonably practicable notice by telephone and in writing to the Insurer and at their own expense supply such proofs of claim as may be reasonably be required by the Insurer and any evidence and information that may be reasonably required by the Insurer for the purposes of investigating or verifying the claim and (if demanded) a statutory declaration of truth of the claim and any matters connected therewith details of all other insurances covering the event or part of it The Insurer shall not be liable for any loss or damage of which no notice has been received by the Insurer within 14 days of its occurrence No settlement, admission of liability, payment of promise of payment shall make to a third party without the written consent of the Insurer (b) preserve any damaged or defective property which might prove necessary as evidence for examination by the Insurer s representatives (c) in the case of property lost stolen or maliciously damaged take all practicable steps (including the giving of immediate notice to the Police) to discover any guilty person and to trace and recover the missing property. The Police must be informed immediately in all cases in respect of loss or damage due to theft, burglary or malicious act (d) in the case of any claim made upon the Insured by any third party forward to the Insurer immediately and unacknowledged every written communication or information as to any verbal notice of claim and all proceedings. Any writ or summons issued against the Insured by a third party should be notified immediately (e) take action to minimise and prevent further loss or damage, to avoid interruption or interference with the Insured s business and, if relevant, take all practicable steps to discover any persons responsible for the loss or damage and to trace and recover missing property No claim shall be payable unless the terms of this Condition have been complied with and in the event of noncompliance any payment on account of the claim already made shall be repaid to the Insurer forthwith. 12

13 Insurer s Rights The Insurer shall be entitled: (a) to take over the defence or settlement of any claim made upon the Insured (b) to take the benefit of any rights of the Insured against any other party before or after the Insured has received indemnification under this policy Fraudulent Claims If any claim is made by or on behalf of the Insured which shall be in any respect unfounded or fraudulent or intentionally exaggerated or if any false declaration or statement be made in support thereof, then no claim shall be recoverable Contribution If at the time any claim arises there is any other insurance effected by or on behalf of the Insured insuring any DAMAGE covered by this Policy the liability of the Insurers hereunder shall be limited to its rateable proportion of such loss Subrogation The Insured shall at the request and at the expense of the Insurer, do and concur in doing and permit to be done all such acts and things as may be necessary or reasonably required by the Insurer for the purpose of enforcing any rights and remedies, or of obtaining relief or indemnity from other parties to which the Insurer shall be or would become entitled or subrogated upon its paying for or making good any loss or damage under this Policy, whether such acts and things shall be or become necessary or required before or after the Insured s indemnification by the Insurer Arbitration The Insured agrees: (a) subject to a reasonable request by the Insurer for permission, to permit the Insurer to pursue legal, arbitration or other proceedings in the name of and on behalf of the Insured to challenge, appeal, open up or amend any decision, direction, award or the exercise of any power of an adjudicator or to stay the enforcement of any decision, direction, award or exercise of any power of the adjudicator. The Insured will give all such assistance as the Insurer may reasonably require in relation to such proceedings. (b) not to accept the decision of any adjudicator as finally determining the related dispute without the prior consent (not to be unreasonably withheld) of the Insurer. Local Currency If required by the Insured claims can be paid in the local currency of the territory where the claim occurred Notice of Claims Notice of an occurrence of a claim or of an event or circumstances which may lead to a claim by any one Insured or their agent shall be accepted by the Insurer(s) as notice of that occurrence by all of the Insured parties 13

14 EXCLUSIONS This Policy does not cover Breakdown Loss of or Damage in respect of Section 1 to any item by its own explosion mechanical or electrical breakdown, failure breakage or derangement. This exclusion does not apply to resultant DAMAGE to the property (other than in respect of jibs and booms on cranes or similar lifting appliances) which results from explosion mechanical or electrical breakdown, failure, breakage or derangement. Rubber Tyres DAMAGE to rubber tyres unless such DAMAGE arises out of an accident for which cover is provided under this Policy to other parts of the Property or unless such DAMAGE arises out of a malicious act which necessitates replacement of such tyres repair thereof being impracticable. Unexplained Losses Loss of Property due to theft or otherwise missing unless such loss is identifiable by the insures with a specific occurrence which has been notified under the terms of Claims Condition Actioned By The Insured Waterbourne Vesels DAMAGE to waterborne vessels or craft or Property on such vessels or craft but this exclusion shall not apply to Property on such vessels or craft whilst being transported by inland waterway Underground Recovery a) DAMAGE to Property occurring underground unless the Property can be repaired underground or brought back to the surface at Insured s own expense. b) Abandonment howsoever occurring and from any cause whatsoever in respect of Property underground. Insureds Contribution the deductible stated in the Schedule being the first part of each and every claim to be borne by the Insured as ascertained after the application of all other terms and conditions of the Policy Fixed Property Fixed or static property which is more specifically insured under Insureds Industrial All Risk Policy Drilling Rigs and Tunnel Boring Machines Oil and Gas Well Drilling Rigs and/or Tunnel Boring Machines Pollution or Contamination DAMAGE caused by pollution or contamination except (unless otherwise excluded) DAMAGE caused by pollution or contamination which itself results from any DAMAGE Transit by Air & Sea DAMAGE occurring whilst the Property is in transit by sea or air Corrosion or Erosion DAMAGE consisting of or caused by any form of corrosion or erosion howsoever the same may arise but this exclusion shall not apply to DAMAGE to any other part of the Property free from such corrosion or erosion Wear & Tear DAMAGE consisting of or caused by gradually occurring wear and tear or deterioration which is both predictable and inevitable from the normal operation or usage of the Property but this exclusion shall not apply to DAMAGE to any other part of the Property free from any such condition Financial Loss Loss of any kind whatsoever including financial loss, loss of profits loss due to delay or any consequential loss of any kind whatsoever not otherwise specifically covered by this policy. Radioactive Contamination 14

15 DAMAGE to any property whatsoever or any loss or expense whatsoever resulting or arising therefrom or any consequential loss directly or indirectly caused by or contributed to by arising from a) ionising radiations or contamination by radioactivity from any nuclear fuel or from any nuclear waste from the combustion of nuclear fuel b) the radioactive toxic explosive or other hazardous properties of any explosive nuclear assembly or nuclear component thereof Multiple Lifting DAMAGE to any property whilst undertaking lifting operations in which a single load is shared between more than one item of lifting equipment at the same time War and Civil Unrest and Political Risks (a) War, nationalisation, act of foreign enemy, hostilities or war-like operations (whether war be declared or not), civil war or acts of terrorism; (b) Mutiny, riot, civil commotion, strike, lock-out, labour disturbances, acts of persons operating on behalf of or in connections with any political organisation, military or popular rising, insurrection, rebellion, revolution, military or usurped power, martial law or state of siege or any of the events or causes which determine the proclamation or maintenance of martial law or state of siege or any of the events or causes which determine the proclamation or maintenance of material law or state of siege: (c) Confiscation, commandeering, requisition or destruction of or damage to property by order of the Government de jure or defacto or any Public, Municipal or Local Authority of the Country or area in which the property is situated. Any loss or damage happening during the existence of abnormal conditions (whether physical or otherwise) which are occasioned by or through or in consequence, directly or indirectly, of any of the said occurrences shall be deemed to be loss or damage which is not covered by this insurance, except to the extent that the Insured shall prove that DAMAGE happened independently of the existence of such abnormal conditions In any action, suit or other proceeding where the Company alleges that by reason of the provisions of this Condition any loss or damage is not covered by this insurance the burden of proving that such loss or damage is covered shall be upon the Insured The subscribing insurers obligations under contracts of insurance to which they subscribe are several and not joint and are limited solely to the extent of their individual subscriptions. The subscribing insurers are not responsible for the subscription of any co- subscribing insurer who for any reason does not satisfy all or part of its obligations Nuclear Risks Loss or damage to any property whatsoever or any loss or expense whatsoever resulting or arising therefrom or any consequential loss or any legal liability of whatsoever nature directly or indirectly caused by or contributed to by or arising from: (a) ionising radiations or contamination by radioactivity from any nuclear fuel or from any nuclear waste from the combustion of nuclear fuel (b) the radioactive toxic explosive or other hazardous properties of any explosive nuclear assembly or nuclear component thereof (c) any weapon employing atomic or nuclear fission and/or fusion or other like reaction or radioactive force or matter 15

16 Terrorism Damage, cost or expense directly or indirectly caused by, contributed to by, resulting from, or arising out of or in connection with: (a) any act, or preparation in respect of action, or threat of action designed to influence the government de jure or defacto of any nation or any political division thereof, or in pursuit of political, religious, ideological or similar purposes to intimidate the public or a section of the public of any nation by any person or groups of persons whether acting alone or on behalf of or in connection with any organisation(s) or government(s) de jure or de facto and which: (i) involves violence against one or more persons: or (ii) involves damage to property: or (iii) endangers life other than that of the person committing the action: and/or (iv) creates a risk to health or safety of the public or a section of the public; and /or (v) is designed to interfere with or to disrupt an electronic system (b) any action in controlling, preventing, suppressing, retaliating against or responding to any act or preparation in respect of action or threat of action described in part a above. In any action, suit or other proceedings where the Insurers allege that by reason of this General Exclusion cover is not provided under this Policy, the burden of proving that cover is provided under this Policy shall be upon the Insured Date Related Performance and Functionality Exclusion Endorsement This policy does not cover: a) Loss or damage b) Consequential loss additional expenditure or extra expenses. c) Legal liability. d) Other fees costs disbursements awards or the other expenses of whatsoever nature. Directly or indirectly caused by or contributed to by consisting of or arising in whole or in part from: i) the way in which any data processing system responds to or deals with or fails to respond to or fails to deal with any true calendar date ii) any data processing system responding to or dealing in any way with 1) any data denoting a calendar date or dates as if such data did not denote a calendar date or dates. 2) any data not denoting a calendar date or dates as if such data denoted a calendar date or dates whether such data processing system is the property of the Insured or not and whether operating before during or after the Year 2000 but this shall not exclude subsequent loss or damage or consequential loss additional expenditure or extra expenses (not otherwise excluded) which itself results from a defined peril otherwise covered by this policy. Definitions For the purposes of this exclusion: Data processing system shall mean any computer or data processing equipment or media or microchip or integrated circuit or any similar device or any computer software or computer firmware. Defined peril shall mean fire, lightening, explosion, aircraft or other aerial devices or articles dropped therefrom, riot, civil commotion, strikers, locked-out workers, persons taking part in labour disturbances, malicious persons, theft or attempted theft, earthquake, subterranean fire, storm, tempest, flood, escape of water from any tank, apparatus or pipe, impact by any vehicle or by goods therefrom or animal. 16