Alterations to your Out of School Policy (This document is also available as part of the online renewal process.)

Transcription

1 Alterations to your Out of School Policy (This document is also available as part of the online renewal process.) We are delighted to announce that we are making extensive enhancements to the options available for your Out of School policy, which take effect from the renewal date. These changes have been made following a review of the performance of the policy and demonstrate our commitment to the continuous improvement of our policy offering. We have listed the most significant alterations below. There are also some changes being made to your Out of School policy as a result of a new piece of legislation, The Insurance Act 2015, which introduces changes to UK insurance contracts. Further details are provided later in this document. In addition, please see the policy Summary and Guide online at the following address: The Summary and Guide highlights the significant features and benefits and the significant exclusions and limitations of the cover provided by the updated policy. Please note that the details in the Summary and Guide are not the full policy document. We will be sending you a new policy document at renewal which will contain full details of your cover and should be read in conjunction with your Policy Schedule to ensure that your requirements have been met. In the meantime, a copy policy can be provided on request, to assist you in considering the renewal invitation. The Out of School policy is insured by Covéa Insurance plc (Covéa Insurance) for all sections other than the Legal Expenses Section, which is administered by ARAG plc a coverholder of the insurer Brit Syndicate 2987 at Lloyd's. The page numbers stated below refer to the Summary and Guide. Enhancements to Standard Covers - the number of sections of cover included as standard has been increased for both cover options as follows: Out of School: Public and Products Liability, Professional Indemnity, Employers Liability, Legal Expenses, Helplines Out of School Gold: Public and Products Liability, Professional Indemnity, Employers Liability, Legal Expenses, Club Contents, Loss of Revenue, Personal Accident for Children at the Club, Personal Accident for Club Officials, Club Money, Club Officials Personal Money, Club Officials Personal Effects, Club Children s Personal Effects, Glass, All Risks, Deterioration of Refrigerated Stock, Helplines Section 1a Public and Products Liability - Page 5 Compensation for court attendance - has now been included which covers you for the costs of attendance at court to help defend or act as a witness in connection with any claim as agreed with Covéa Insurance up to a limit of 100 per day Data Protection Act 1998 cover now includes any amount you are legally liable to pay under Section 13 of the Data Protection Act 1998 in connection with data held by you. This cover will not pay for any fines or penalties or replacing, reinstating, rectifying or erasing any personal data Health & Safety at Work the policy is extended to cover payments to you for any legal costs and expenses incurred (with Covéa Insurance s consent) in the defence of any criminal proceedings brought in respect of a breach of Health and Safety at Work etc. Act 1974 Food Safety Acts the policy is extended to cover legal costs incurred (with Covéa Insurance s consent) in connection with the defence of proceedings or an appeal against conviction arising from such proceedings brought for breach of the Consumer Protection Act 1987 and the Food Safety Act Face Painting, Skate Boarding, Roller Blading please be aware that new Conditions have been introduced in relation to these activities. Please see the Policy document for details. KH

2 Section 1b Professional Indemnity Page 8 Professional Indemnity has been included as standard for 25,000 but higher limits of indemnity are available on request for an additional premium. Section 2 Employers Liability Page 7 Health & Safety at Work there is no longer a limit of liability of 10,000 in respect of payments to you for any legal costs and expenses incurred (with Covéa Insurance s consent) in the defence of any criminal proceedings brought in respect of a breach of Health and Safety at Work etc. Act 1974 Compensation for court attendance - has been included which covers you for the costs of attendance at court to help defend or act as a witness in connection with any claim as agreed with Covéa Insurance up to a limit of 100 per day Indemnity to other persons cover by this section is extended to pay at your request any of your directors, partners, principal or committee members or employees for amounts which they are legally liable in respect of which you would have been entitled to payment under this policy had the claim been made against you Unsatisfied Court Judgement cover is extended to include payment of judgements for damages obtained by employees in respect of bodily injury that have remained unsatisfied wholly or in part for six months provided that there is no appeal outstanding and that the judgement is assigned to Covéa Insurance. Section 3 Legal Expenses - Page 9 The Legal Expenses section is now administered by ARAG PLC on behalf of Insurer Brit Syndicate 2987 at Lloyds. We are pleased to advise that as well as improved cover, you now also have access to Business Legal Service which provides access to legal documents to assist you with commercial matters. You will need to register at using voucher code ARAG7537BIZ. There are new telephone numbers for Claims and Helplines. Please quote Morton Michel policy and your policy number: Legal and Tax Advice Helpline: Redundancy approval Helpline: Crisis communication: Counselling Helpline: Please note that Health & Medical Information Service helpline is withdrawn as NHS 111 is freely available. Making a Claim If you need to make a claim you must notify Insurers as soon as possible and under no circumstances should you instruct your own lawyer or accountant as the insurer will not pay any costs incurred without prior agreement. You can request a claim form between 9am and 5pm Monday to Friday (except bank holidays) by telephoning or by downloading one at A written acknowledgement within one working day of receiving your claim form will be provided and within five working days of receiving all the information needed to assess the availability of cover under this section of the policy, Insurers will either: confirming the appointment of a qualified representative who will promptly progress the claim for you; or if the claim is not covered, explain in full why and whether they can assist in another way. The cover provided is now listed as Insured events. The following changes apply to all events: New exclusions apply relating to allegations involving: the manufacture, dealing in or use of alcohol, illegal drugs, illegal immigration. money Laundering offences. 2 KH

3 The changes to each Insured event are as follows: Employment There is no longer an exclusion applying to current T.U.P.E regulations (these regulations impose obligations on employers where employees transfer from one employer to another following acquisition of business or the transfer of a contract to provide services between service providers.) Employment compensation awards There are no longer exclusions for: a settlement agreed and payable following conciliation under the ACAS Early Conciliation procedure compensation awards relating to pregnancy or maternity rights, paternity, parental or adoption rights any award ordered because you have failed to provide relevant records to employees under the National Minimum Wage laws any compensation award or increase in compensation award ordered by the tribunal for failure to comply with a recommendation it has made, including non-compliance with a reinstatement or reengagement order. Employment Restrictive Covenants Cover is included for legal costs to seek damages from your employee or ex-employee where they have breached a restrictive covenant in their employment contract with you or to defend a claim where another party alleges that you are in breach of a restrictive covenant. Tax Protection Cover has been widened to include: HMRC enquiries into the personal tax affairs of your directors and/or partners (in addition to your business tax affairs) an enquiry into your tax affairs, the personal tax affairs of your directors and/or partners arising from an alleged discovery by HM Revenue and Customs. Exclusion applies to any enquiry that concerns assets, monies or wealth outside of Great Britain and Northern Ireland. There is no longer an exclusion relating to your failure to register for Pay As You Earn. Property Cover is now provided for property which you wish to recover or repossess from an employee or ex-employee. There are no longer exclusions for: motor vehicles owned by or used by, or hired to an insured person Goods not at a premises other than those occupied by you Mining subsidence Legal Defence Cover has been extended to defend your business and your employees if they are prosecuted for a motoring offence. Your directors and/or partners also enjoy cover while driving for personal, social or domestic purposes or to commute to or from their place of work. Territorial Limits now extends to include countries of the European Union plus Norway and Switzerland. Compliance and Regulation You are covered for legal costs for advice and representation if you receive notice of a formal investigation or disciplinary hearing by any professional or regulatory body (for example OFSTED). You are also covered for legal costs to appeal against a legal notice issued against you by your regulator (for example an OFSTED initial or final warning letter). KH

4 Loss of Earnings Loss of earnings cover has been enhanced to provide for an insured person s absence from work to attend mediation, a professional body s disciplinary hearing or regulatory proceedings at the request of an appointed advisor. Employees Extra Protection Cover includes Identity theft targeted at Directors and/or partners. Cover for an insured person or a member of their family if they suffer bodily injury or death as a result of a sudden event. Crisis Communication You can get help from a professional PR consultant to deal with communications where an event causes your business significant adverse publicity or reputational damage. PR consultancy costs are covered up to 10,000. Contract and debt recovery There are no longer exclusions for: claims relating to motor vehicles disputes arising from an agreement entered into prior to the inception date of this section but where the date of occurrence is within the first 90 days of the inception date of this section; claims relating to the sale, purchase, and terms of a lease, licence or tenancy. an excess of 500 for contractual disputes that exceed 5,000 in value. Territorial Limits extend to include countries of the European Union plus Norway and Switzerland. Section 4 Club Contents Page 12 We have changed the way the Contents section of this policy operates. Instead of covering you for specific perils for instance, fire, flood, theft, etc.the policy will now cover you for All Risks unless they are specifically excluded. We have also altered some of the limits and sums insured, as below. Accidental Damage cover is extended to include accidental damage as standard to the club contents Capital Additions cover is now included as standard for newly acquired club contents up to a limit of 1,000 provided that the items are not insured elsewhere and that Covéa Insurance are notified as soon as possible or within 6 months of the addition and the appropriate premium is paid from the commencement date of your liability for such property Documents and computer system records stored away from the premises cover is extended to include damage to deeds and other documents, manuscripts, plans and writings of every description, books and computer system records being stored in the home of any authorised club official or stored in a selfcontained unit in a storage facility up to a limit of liability of 500 Documents and computer system records - temporary removal cover is extended to include damage to deeds and other documents, manuscripts, plans and writings of every description, books and computer system records whilst temporarily removed to a premises not in your occupation Exhibitions cover is now provided for damage to club contents whilst within the premises of any trade show or exhibition within Europe (including whilst in transit thereto and therefrom) up to a limit of 500 and excluding theft or attempted theft from unattended vehicle Landscaping costs cover now includes the cost of repairing damage to gardens and grounds at the premises caused by fire brigade equipment or personnel up to 500 in any one period of insurance Theft damage to the premises there is now a limit of 10,000 in this respect Theft of Keys there is no longer an exclusion for theft of keys left on the premises after business hours Additional statutory costs cover is extended to include reasonable incurred additional costs involved in complying with statutory regulations or local authority requirements following damage to the club contents Trace and access cover is extended to include necessary and reasonable costs of locating the source of damage in order to effect repairs occurring at the premises resulting from escape of water or oil from any fixed installation, up to 1,000 Unauthorised use of electricity, gas and water cover is extended to provide for the cost of loss of metered electricity, gas and water for which you are legally responsible arising from unauthorised use and the limit of liability is 1,000 in any one period of insurance 4 KH

5 Drains, sewers and gutters cover is now extended to include costs and expenses necessarily incurred for cleaning and clearing of drains, sewers and gutters in consequence of damage to the club contents up to a limit of liability of 1,000 in any one period of insurance Fire Brigade charges cover is extended to meet the reasonable costs charged by any Public Authority relating to extinguishing or fighting of fire up to a limit of liability of 1,000 Continuing interest and hire charges cover is extended to pay any interest charge or continuing hire charges not recoverable under the terms of a lease of which you are liable under contract and which do not exceed a limit of liability of 1,000 in any one period of insurance Consulting engineers and legal fees cover is extended to include within the overall club contents sum insured payment for the cost of consulting engineers, legal and other fees necessarily and reasonably incurred in the reinstatement or repair of property following damage but excluding fees charged for the preparation of any claim Groundsmen s machines etc in the garden(s) cover is extended to include cover for damage to groundsmen s machines and equipment in the garden(s) of the premises up to a limit of 500 Seasonal Increase cover is extended to provide an automatic increase in club contents sum insured by 10% up to a limit of 1,000 during the period 1 st December to 31 st December each year (both dates inclusive) Signs cover is extended to include damage to signs (other than glass) affixed to the buildings of the premises up to a limit of 250 in any one period of insurance Additional clauses in respect of a flood or storm claim, the 72 hour clause is a new clause which allows the insured to select a 72 hour period of damage to be regarded as one claim (and only subject to one excess). Section 5 Loss of Revenue Page 17 Loss of Revenue is now included as a standard cover within the Out of School Gold policy at a sum insured of 25,000. The sum insured provided under this section should be based on your estimate of the true gross revenue to be earned in the next twelve months and therefore this should be increased accordingly if necessary for an additional premium. Prevention of Access a limit of liability has been applied at 10,000 and a restriction to damage occurring within one kilometre for the interruption or interference with the business which prevents or hinders the use of or prevents access to the premises Public Utilities a limit of liability has been applied at 10,000 in any one period of insurance but cover has been extended to include interruption or interference in consequence of damage to property at an internet service provider Deeds and Documents temporary removal the liability is now limited to 10,000 in any one period of insurance for interruption or interference with the business in consequence of damage to plans, deeds, briefs, manuscripts, books, documents and office records whilst temporarily removed from the premises but now includes computer system records Documents and computer systems records stored away from the premises cover is extended to include damage to deeds and other documents, manuscripts, plans and writings of every description, books and computer system records being stored in the home of any authorised club official or stored in a selfcontained unit in a storage facility up to a limit of 10,000 in any one period of insurance Compulsory Closure the maximum indemnity period is restated as 6 months Contract Sites cover extended to include interruption of or interference with the business in consequence of damage at any location not shown in the schedule at which you are contracted to undertake work anywhere within the territorial limits up to a limit of liability of 2,500 in any one period of insurance Exhibition Sites cover is extended to include interruption of or interference with the business in consequence of damage at any trade fair or exhibition location not shown in the schedule at which you are to occupy a stand anywhere in Europe to a limit of liability of 2,500 in any one period of insurance Book Debts cover is limited to 25,000 in any one period of insurance in consequence of damage to your records of outstanding debts balances contained within the premises. A condition has been applied that at the end of each month you shall record the total amount outstanding in customers accounts and shall maintain a separate record in addition to the books of account, in a place other than the premises. Maximum amount payable cover is up to 133.3% of the sum insured on gross revenue. Section 6 Personal Accident for Children at the Club Page 17 The compensation level for death of a child has been increased from 5,000 to 10,000. KH

6 Section 7 Personal Accident for Club Officials Page 18 Cover has been extended to include club officials up to the age of 75 years whereas previously the upper age limit was 70 years and cover for temporary total disablement is increased from 50 per week to 100 per week. Section 8 Club Money Page 14 Non-negotiable Money - Non-negotiable money limit now 25,000 Credit Cards - cover has been extended to include any amount you may become liable for under the terms of any issuing bank for any fraudulent use by any unauthorised person up to a limit of 1,000 Personal Assault The cover has been extended to include club officials up to the age of 75 years whereas previously the upper age limit was 70 years The compensation for temporary total disablement has been increased from 50 per week to 100 per week Personal Assault/Personal Effects the cover has been extended to include damage to personal effects arising as a direct result of robbery or hold up or any attempt thereat up to a limit of 250 any one club official. Section 9 Club Officials Personal Money Page 15 Personal Money limit is increased to 100 from 200 any one occurrence. Section 10 Club Officials Personal Effects Page 15 This section is no longer limited to personal clothing and now includes personal effects and the limit has been increased from 100 to 300 any one occurrence. Section 11 Club Children s Personal Effects Page 15 This section is no longer limited to personal clothing and now includes personal effects. Section 12 Glass Page 15 This is a new section of cover included as standard in the Out of School Gold policy and covers damage to fixed glass at the premises, temporary boarding up, repair of window and door frames, damage to alarm foil, breakage of fixed mirrors, counters and display cabinets, neon and illuminated signs up to a limit of 2,500 any one occurrence. Section 13 All Risks Page 13 A standard cover is now included in the Out of School Gold policy for unspecified all risks at a sum insured of 500. Section 14 Deterioration of Refrigerated Stock Page 16 Standard sum insured has been increased from 300 to 500 Section 15 Buildings Page 19 Capital Additions cover is extended to include newly acquired or erected buildings at a maximum sum insured of 5,000 for any one location Theft of fixed fabric of the building cover has been extended to include theft of fixed fabric of the building, including fixed external CCTV equipment and security lighting up to a limit of 500 in any one period of insurance Additional costs of construction (energy efficiency) cover has been extended to cover additional costs of reinstatement following damage to the buildings arising solely from the necessity to comply with the application of the EC Directive on Energy Performance on Buildings 2002/91 up to a limit of liability of 2,000 in any one occurrence Trace & access cover is extended to include the costs necessarily and reasonably incurred in locating the source of damage in order to effect repairs or making good in respect of damage to the buildings resulting from the escape of water or oil from any fixed installation up to a limit of 500 in any one period of insurance Drains, sewers and gutters cover is extended to include costs and expenses necessarily incurred by you (with Covéa Insurance s consent) for cleaning and/or clearing of drains, sewers and gutters in consequence of damage to the buildings up to a limit of liability of 500 in any one period of insurance Fire brigade charges cover is extended to cover the costs charged by any Public Authority relating to the extinguishing or fighting of fire 6 KH

7 Further investigation costs cover is extended to include reasonable costs incurred (with Covéa Insurance s consent) for the opinion of a competent construction professional to establish whether or not other proportions of the same building or buildings in the immediate vicinity have suffered such damage by the same incident up to a limit of liability of 500 in any one period of insurance Landscaping costs cover is extended to cover the costs and expenses incurred by you (with Covéa Insurance s consent) in repairing or reinstating damage to the landscaped gardens and grounds at the premises caused by fire brigade equipment and personnel in combating fire or any other insured event up to a limit of 500 in any one period of insurance Additional clauses 72 Hours Clause in respect of a flood or storm claim, the 72 hour clause is a new clause which allows you to select a 72 hour period of damage to be regarded as one claim (and only subject to one excess). Endorsements and Special conditions AOSE1 Subsidence - Applicable only where shown on your schedule. An increased excess of 2,500 for each claim in respect of subsidence, heave or landslip is now applicable. Section 17 - Terrorism Page 20 Phishing is added to the Terrorism risks that are not insured by the policy. The Insurance Act 2015 The Insurance Act 2015 (the Act ) has introduced changes to UK insurance contracts with effect from 12 August To assist you, we have summarised the main changes that may affect your policy. This summary does not constitute legal advice nor is it designed to be a summary of the Act itself. If you require any additional information please contact your insurance broker. Fair Presentation of Risk The main change introduced by the Act is the duty of fair presentation. We have introduced a Fair Presentation of the Risk condition into our policies. Under the new duty, at inception and renewal of our policies (and also whenever you request any changes) you will need to: tell us, in a clear and accessible manner, about all material facts; and not misrepresent any material facts. A material fact is a circumstance or representation that would influence an Insurer s decision to offer you insurance and, if so, on what terms. If you are unsure about whether a fact is material, please tell your insurance broker. Failure by you to make a fair presentation of material facts could result in a reduction in any claim payment or the imposition of additional terms. In certain circumstances, failure to make a fair representation may result in your insurance being avoided with no claims being payable. The duty to disclose continues throughout the term of your insurance and any material changes should be immediately notified to the insurer. If you are unsure as to whether or not an item is a material fact, you should disclose it. Warranties and Important conditions Prior to the Act, a breach of warranty would mean that you did not have cover and that a claim would not be paid. This is amended by the Act so that a breach of warranty will now result in cover being suspended for the duration of the breach, with cover being re-instated once the breach has been remedied (if that is possible). In order to effect these changes, we have replaced all warranties in our policies with conditions precedent. A Condition precedent to liability means that a breach of the condition will only allow an Insurer to avoid a claim where the breach of the condition is directly relevant to the claim in question. You should check your schedule to review the changes which apply to your Policy. KH

8 Changes to your policy documentation Policy wording Various changes have been made to sections of your policy wording to reflect the adoption of the Act. Whilst these are summarised below we recommend that you review the policy wording carefully as these changes will apply to your policy with effect from the renewal date. Preamble and Introduction Change in risk Fair Presentation of the Risk Fraud Terms Not Relevant to a Loss Proposal Form/Statement of Fact The Proposal Form/Statement of Fact now contains a statement on the duty to make a fair presentation. The full clause is shown below; Fair Presentation of the Risk You have a duty to make a fair presentation of the risk which is covered by this policy. Therefore you should ensure that any information you have provided to us and the content of any application form, declaration and / or Statement of Fact is accurate and complete. Where you have provided us with information which relates to matters of your expectation or belief, it does not matter if such information turns out to be inaccurate provided that you acted in good faith when you provided us with such information. If you do not comply with your duty to make a fair presentation of the risk, including failing to disclose or misrepresenting a material fact, or disclosing material facts to us in a way which is not clear and accessible your policy may not be valid or the policy may not cover you fully or at all. A material fact is any fact which could influence our assessment or acceptance of your application for insurance. You must also tell us about any facts or changes which affect your insurance and which have occurred either since the policy started or since the last renewal date. If you are not sure whether certain facts are relevant please ask your insurance broker. If you do not tell us about relevant changes, your policy may not be valid or the policy may not cover you fully or at all. You must check all the information contained within this document immediately and tell us if any details are incorrect. You should keep a written record (including copies of letters) of any information you give us or your insurance broker. Other Changes to Your Policy - Cancellation The General Condition Cancellation has been amended to provide you with some examples of reasons why we may cancel your policy and explains how we will treat your premium in the event of cancellation by you or by us. 8 KH