Liability Policy Wording. Faith Organisations

Transcription

1 Liability Policy Wording Faith Organisations

2 Introduction Comprehensive insurance for your place of worship from New Zealand s leading specialist insurer of faith organisations. From small beginnings, Ansvar Insurance has grown to become the pre-eminent insurer of places of worship in New Zealand. We have a unique record of service to faith organisations. As a specialist insurer, our products and services have been designed to respond to the increasingly complex challenges facing faith organisations today. We appreciate the uniqueness of a place of worship and understand insurance risks associated with them. Our comprehensive Faith Organisations liability insurance portfolio has been specifically designed to provide protection for the liability exposures faced by faith organisations operating in today s society. The covers available include broadform (general and products) liability, professional indemnity, trustees liability, directors and officers liability, associations liability, statutory liability, employers liability, employment disputes liability, fidelity, sexual abuse and criminal defence costs. Ansvar Insurance Ansvar Insurance began serving New Zealanders back in 1983 and has always been a prominent insurer of faith organisations. In 1998, Ansvar Insurance was purchased by the Ecclesiastical Insurance Office plc, a leading insurer of heritage, religious and charitable organisations in the UK. Since then we have gone from strength to strength providing insurance in our specialist areas. By law we are required to have a Financial Strength Rating. The rating agency A.M. Best has assigned us a Financial Strength Rating which is updated annually. Our current rating is recorded in the certificate of insurance. The rating emphasises a sound operating performance, adequate capital, a responsible investment profile and sound liquidity. Our business focuses on serving organisations devoted to providing services and support to the community in both spiritual and practical ways. Faith organisations, educational institutions, care facilities, community groups and charitable organisations comprise the portfolio of our business partnerships. They all add something very positive to the lives they touch. Our experience Insuring around 30,000 places of worship in Australia, the UK, Ireland, Canada and New Zealand we have developed specialist knowledge on faith organisations by drawing upon our global experience. Each year we survey around 4,000 places of worship globally to help identify and manage potential risks. Our claims management team share knowledge and outcomes to monitor faith organisations closely. This ensures our claims management advice is at the forefront of global developments. We are a member of Ecclesiastical Office plc who also insures an impressive 17,000 places of worship including the world famous Westminster Abbey and St Pauls Cathedral in London. Our approach As a specialist insurance company we have developed a deep understanding of the issues confronting our faith customers of all religions. Our products and services are tailored accordingly. We understand the religious beliefs and customs of our customers and have developed products to cater for their needs. Our dedicated staff are committed to helping customers protect their assets and people by providing: specialist insurance advice in the area of religious assets and protection of their people flexibility in underwriting expert advice and practical solutions opportunities to attend risk management seminars that address specific issues affecting our clients Ansvar Insurance believes that claims should be managed quickly and compassionately, with the needs of our customers being paramount. We are always mindful of the reputation of our customers when we are managing claims made by injured parties and work in partnership on sensitive matters. 1

3 Supporting our community Central to the Ansvar Insurance brand is our desire to make a difference in the world. At a practical level, we are able to provide grants to grass roots programs designed to assist young New Zealanders develop a positive attitude to life. Every year we provide support to community education programs touching and enriching the lives of young New Zealanders. In Australia our community support was acknowledged by the Australian and New Zealand Institute of Insurance and Finance in 2007 when we received the award for Service to the Community. The industry s acknowledgement of our contribution to the community through our grants is very satisfying and whilst we are proud to have won this award, we are delighted that these programs can provide such a positive impact on the lives of New Zealand youth. About this document The financial product offered in this policy document is provided by Ansvar Insurance Limited. Please ensure you read and fully understand this policy document as it sets out the terms and conditions of the agreement between you and us. If there is anything in this policy document you do not understand you should contact your insurance adviser or Ansvar Insurance representative. Who is the insurer and how can we be contacted? Ansvar Insurance Limited is the issuer of this insurance policy. The registered office of Ansvar Insurance is Level 6, Sofrana House, 396 Queen St, Auckland You can contact us by: visiting in person or writing to Ansvar Insurance telephoning to insure@ansvar.co.nz The contract between you and Ansvar Insurance Your insurance policy is a contract between you (the insured) and us (Ansvar Insurance Ltd). In return for payment of your premium, we will provide you with the covers listed in the schedule and on the terms set out in the respective policy wordings. This policy is for the period of insurance shown in the schedule. This policy document, together with your insurance proposal (application) form and the statement containing your specific information called the policy schedule or renewal, gives you the details of the insurance provided by your Ansvar Insurance policy. They are to be read as one document. Together they are your contract of insurance with us. Your duty of disclosure You are required to tell us anything you know, or ought to know, that may affect the decision of a prudent insurer whether to accept your insurance, or renew your policy, and if so, on what terms. If you have not disclosed all material information, or if you have misrepresented that information, then we are entitled to avoid the policy retrospectively from the beginning. Set out below are some examples of the types of information you should disclose and the types you do not need to disclose. They are a guide only. If you are unsure whether you should disclose something to us, please ask. Types of information that should be disclosed include: any previous insurance claim you have made anything that increases the risk of a claim if another insurer has ever cancelled or refused to renew your insurance or has imposed special terms on it any criminal record Types of information that do not need to be disclosed include: anything which reduces the risk of a claim anything which you have already told us or which in the ordinary conduct of our business we could be expected to be aware of anything which is common knowledge 2

4 Insurance Council membership We are a member of the Insurance Council of New Zealand Inc (ICNZ), and this carries with it responsibilities for conducting business in a professional manner. Fair Insurance Code As members of the ICNZ, we are bound by the terms of the Fair Insurance Code. This can be viewed on the ICNZ website icnz.org.nz or through a brochure available from our office. Under the Fair Insurance Code we are committed to raising standards of service to our customers. This voluntary code sets out the minimum standards we will uphold in the services we provide to you. This means we will: answer your questions accurately explain the information you need to give us when you apply for insurance, renew your policy, or make a claim explain the importance of giving us information that is complete, up to date, and relevant give you or your broker a copy of your policy that sets out in plain English what is insured, what is not insured, and what your obligations are tell you about any changes to your policy We will give you information about the best policies we can offer you. You are entitled to ask for and receive help to understand the terms, conditions, and exclusions of your insurance policy. You are entitled to ask for and receive a copy of the information you gave us when you applied for insurance. You also authorise us to obtain from ICR Ltd personal information about you that is (in our view) relevant to this policy or any claim made against it. You have certain rights of access to and correction of this information, subject to the provisions of the Privacy Act The easy solution to a problem Ansvar Insurance places the highest priority on providing prompt, efficient and friendly service including protecting your privacy. However, if you do not believe this has been achieved the best first step is to go back to the employee or broker with whom you were dealing to see if they can resolve the problem. If that is not possible, then we invite you to contact the Manager for New Zealand who will review the problem. Acknowledgement of the complaint will be made within three working days from the day the complaint is received by telephone or in writing. Your complaint will be fully investigated as quickly as possible by someone not involved in the original decision. You will be provided with the name of the person dealing with your complaint. You will receive written advice about the progress or outcome of the complaint within ten working days from the day the complaint is received by telephone or in writing. You will be advised within sixty days if we are unable to resolve your complaint and of what further options may be available to you. Insurance Claims Register The Insurance Claims Register (ICR) is a database of insurance claims to which participant insurers have access. The purpose of the ICR is to prevent insurance fraud. The ICR is operated by Insurance Claims Register Limited (ICR Ltd), PO Box 474, Wellington. This policy is issued to you on the condition that you authorise us to place details of any claims made against this policy on the database of ICR Ltd, where they will be retained and be available for other insurance companies to inspect. 3

5 Professional Indemnity Insurance Policy You only have cover under this policy if the schedule lists it as included. This policy should be read in conjunction with the schedule. Contents 1 Definitions What You Are Insured For Automatic Extensions Defamation cover Previous business Loss of documents Non-imputation of dishonesty or fraud Consecutive cover Dishonesty or fraud of employees Disciplinary Proceedings and Enquiries Fair Trading Act Intellectual Property Joint Ventures Optional Extensions Automatic reinstatement of sum insured Exclusions Asbestos Bodily injury Claims by certain people Directors' liability Dishonesty / fraud / malice / crime Employment disputes Exemplary damages Financial condition Fines Goods Illegal profit Intentional liability Information Technology Operations Investment Advice Joint Ventures Jurisdiction Land / buildings / aircraft / watercraft / vehicles Leaking Building Liability assumed by agreement Medical Malpractice Offering securities Pollution

6 5.23 Prior claims or enquiries Refund of fees Terrorism Trustees liability War / Confiscation / Nuclear What We Pay Connected wrongful acts Maximum amount payable Excess How To Claim Under The Policy To make a claim After you have made a claim Dishonest or fraudulent claims

7 1 Definitions These definitions apply to the following words, and their derivatives, whenever they are used in this policy in bold typeface: 'Accident' means an event that is unintended and unexpected by you. 'Act of terrorism' means any act, or preparation in respect of action, or threat of action designed to influence the government de jure or de facto of any nation or any political division of that nation, or in pursuit of political, religious, ideological, ethnic or similar purposes or reasons 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 or government de jure or de facto, and which: (c) (d) (e) involves force or violence against one or more persons, or threat thereof, or involves damage to property, or endangers life other than that of the person committing the action, or creates a risk to health or safety of the public or a section of the public, or is designed to interfere with or disrupt an electronic system. 'Bodily injury' means the accidental death of, or the accidental bodily injury to, any person, including sickness, disease, disability, shock, fright, mental anguish or mental injury. 'Business' means the faith organisation and any associated entities that are described in the schedule. 'Claim' means: (c) A civil proceeding brought against you alleging you are civilly legally liable for a wrongful act, or Any advice you receive of an intention to hold you civilly legally liable for a wrongful act, or Any circumstance you become aware of that is likely to give rise to or above. This is regardless of whether or not the amount claimed against you exceeds the excess. 'Defence costs' means the necessary and reasonable legal defence costs to defend your alleged legal liability, but only if that alleged legal liability will be covered under this policy, if proven. 'Employees' means employees directly employed by you in the business. It does not include independent contractors. 'Excess' means the amount stated in the policy or shown in the schedule. 'Family' means spouse, de facto partner, parent, child, brother, sister (including 'step' and 'half' relationships). 'Period of insurance' means the period shown in the schedule. 'Retroactive date' means the date shown in the schedule. 'Schedule' means the most recent Schedule to this Faith Organisations Liability Insurance Portfolio that we have issued to you. 'Territory' means the country or countries named in the schedule. 'We/us/our' means Ansvar Insurance Limited. 'Wrongful act' means any alleged: Act or omission, or Misleading statement, or Negligence, or Error, or Breach of duty by you after the retroactive date, solely in the course of your advice or services in a professional capacity for the business. 'You' means: The faith organisation named in the schedule and its associated entities named in the schedule; and All past and present directors, trustees, managers, employees, secretaries, committee members, officers, religious leaders, religious counsellors, lay persons and volunteers of that faith organisation and its associated entities in above, and 3

8 (c) The estate or legal representatives of any of the people in to above who are deceased. 2 What You Are Insured For 2.1 We will indemnify you against your civil legal liability arising out of any wrongful act occurring in a territory after the retroactive date in connection with your business, provided: You first become aware of a claim, during the period of insurance, and You first notify us about the claim: during the period of insurance, or within 30 days after the period of insurance ends. 2.2 We will also indemnify you for your defence costs. 3 Automatic Extensions The following extensions are subject to the terms of this policy, except to the extent they are varied in each extension. They are all included within the Sum Insured shown in the schedule and are not in addition to it. They are also subject to any specified sub limits. 3.1 Defamation cover The cover includes wrongful acts involving defamation in connection with the provision of professional advice or professional services for the business. 3.2 Previous business The cover includes wrongful acts in relation to your former businesses. 3.3 Loss of documents The cover includes wrongful acts that result in the loss of documents entrusted to and not belonging to you. 3.4 Non-imputation of dishonesty or fraud The dishonesty or fraud by one insured is not imputed to any other insureds. 3.5 Consecutive cover The cover is extended to claims first notified to you, or which you first became aware of, during previous periods of insurance that we have issued this policy to you, as long as: This policy has been continuously issued to you between that previous period of insurance and this period of insurance, and You first notified to us during: This period of insurance, or Within 30 days after the end of this period of insurance. Provided, cover shall be on the terms of the policy current when the claim was first notified to you, or when you first became aware of it. Exclusion 5.23 does not apply. 3.6 Dishonesty or fraud of employees The cover is extended to include your civil legal liability arising from a dishonest, fraudulent, criminal or malicious wrongful act by an employee. There is no cover under this extension for the offending employee and anyone conspiring with the offending employee. However, where theft or misappropriation of money is involved: You must have kept a separate trust account for that money and the trust account must have been audited at least annually by a qualified independent accountant, and All payments or withdrawals from the trust account, whether by cheque or otherwise, must have had to be authorised by at least two authorised people. The most we will pay you in total under this extension for all covered claims during the period of insurance is the amount shown in the schedule for this extension. Exclusion 5.5 does not apply to this extension. 4

9 3.7 Disciplinary Proceedings and Enquiries The cover is extended to insure legal costs necessarily and reasonably incurred by you with our consent for your representation at a legal or quasi legal enquiry: provided: into whether, in the conduct of your advice or services for the business, you have breached any relevant professional code of conduct administered by any overseeing professional association, or about a complaint against you in the conduct of your professional advice or professional services for the business, by a statutory registration board, similar regulatory authority or coronial enquiry, you first become aware of the enquiry during the period of insurance, and you have advised us of the enquiry within 30 days after the period of insurance ends. The most we will pay under this extension for all enquires you become aware of during the period of insurance is the Sum Insured shown in the schedule for Disciplinary Proceedings and Enquires. 3.8 Fair Trading Act The cover is extended to insure your civil legal liability arising from a breach of the Fair Trading Act Intellectual Property The cover is extended to insure your civil legal liability arising from an infringement of any patent, copyright, design or trademark in your professional advice or professional services Joint Ventures The cover is extended to insure your individual and joint civil legal liability in respect of joint ventures of which you are a party, provided the joint venture is shown in the schedule. You are not insured for civil legal liability arising from claims brought against you by your joint venture partner. No cover is provided to your joint venture partner. After we have paid a claim under this Extension, we are entitled to exercise by subrogation, your rights to seek indemnity or contribution from your joint venture partner. Exclusion 5.15 does not apply to this extension. 4 Optional Extensions 4.1 Automatic reinstatement of sum insured This optional extension only applies if it is listed in the schedule. If the cover under this policy during the period of insurance exceeds the Sum Insured shown in the schedule, we will provide one automatic reinstatement of the Sum Insured during that period of insurance. However, this does not apply: to any claim and/or enquiry that is connected with the same act or omission as a claim and/or enquiry already met, or to be met, under this policy, and until any separate excess layer policy that insures you, after the Sum Insured under this policy is exceeded, is exhausted. 5 Exclusions 5.1 Asbestos There is no cover for legal liability connected in any way with asbestos. 5.2 Bodily injury There is no cover for legal liability arising in connection with the bodily injury to, or the harassment of, or discrimination against any person. 5.3 Claims by certain people There is no cover for legal liability arising in connection with a claim brought by: Another insured under this policy, or A subsidiary or associated entity of an insured under this policy, or Any member of your family. 5

10 5.4 Directors' liability There is no cover for a wrongful act in your capacity as a director of a company or other incorporated body. 5.5 Dishonesty / fraud / malice / crime There is no cover for a wrongful act by you, that is: Dishonest, or Fraudulent, or Malicious, or Criminal. 5.6 Employment disputes There is no cover for legal liability for a wrongful act in connection with an employment dispute. 5.7 Exemplary damages There is no cover for any punitive or exemplary damages awarded against you. 5.8 Financial condition There is no cover for legal liability arising out of your insolvency, bankruptcy, receivership, statutory management or liquidation. 5.9 Fines There is no cover for any fine or penalty imposed on you Goods There is no cover for legal liability in connection with your sale, supply, storage or manufacture of goods of any kind Illegal profit There is no cover for legal liability in connection with your: Gaining of any profit or advantage, or 5.13 Information Technology Operations There is no cover for legal liability arising from the provision of advice or services in connection with computer or information technology systems and operations but this exclusion shall not apply to liability arising out of normal everyday use of the internet for , intranet and associated activity, or arising out of any material on your website in support of your products or services Investment Advice There is no cover for legal liability arising from any investment advice or information or opinion or failure to provide advice or information regarding investments Joint Ventures There is no cover for legal liability in connection with your business being part of a joint venture Jurisdiction There is no cover for legal liability established by any court other than a New Zealand court, unless the judgment can be enforced in New Zealand by a New Zealand court Land / buildings / aircraft / watercraft / vehicles There is no cover for legal liability in connection with the ownership, possession or use of any kind of: Land or buildings, or Aircraft, or Watercraft, or Vehicle Leaking Building There is no cover for legal liability connected in any way with any building or structure: Receiving any remuneration to which you are not legally entitled Intentional liability There is no cover for legal liability arising from wrongful acts committed by you with the intention of causing harm or loss of any kind to the claimant or as a result of a deliberate breach of statute or regulation by you. Containing moisture or being penetrated by external moisture or water, Containing mould, fungi, mildew, rot, micro-organisms, bacteria, protozoa or anything similar that is caused directly or indirectly by: (i) Non-compliance with the New Zealand Building Code, or 6

11 (ii) (iii) (iv) Faulty or defective design or specification, or Faulty materials, or Faulty workmanship when the building or structure was constructed, altered or repaired Liability assumed by agreement There is no cover for legal liability arising solely because you agree to obligations beyond what the law compulsorily imposes on you in the normal course of conduct of your business Trustees liability There is no cover for any wrongful act in your capacity as a trustee of a trust or superannuation fund War / Confiscation / Nuclear There is no cover for legal liability connected in any way with: war, invasion, act of foreign enemy, hostilities or warlike operations (whether war is declared or not), civil war, mutiny, rebellion, revolution, insurrection, military or usurped power, 5.20 Medical Malpractice There is no cover for your legal liability or the legal liability of any person who is a medical practitioner or a self-employed registered health professional where the claim is in connection with such person acting in their capacity as a medical practitioner or prescribed registered health professional Offering securities There is no cover for legal liability arising in connection with any public or private offering of securities Pollution There is no cover for legal liability connected in any way with pollution of any kind (including any removal, neutralising, or cleaning up costs) Prior claims or enquiries There is no cover for any claim or enquiry first notified to you prior to the period of insurance, or which you first became aware of prior to the period of insurance Refund of fees There is no cover for legal liability in connection with your fees, whether by way of a liability to refund such fees by way of damages or otherwise Terrorism There is no cover for legal liability directly or indirectly caused by, resulting from or in connection with any act of terrorism, regardless of any other cause or event contributing concurrently or in any other sequence to the loss, or any action taken in controlling, preventing, suppressing, retaliating against, responding to or in any way relating to an act of terrorism. (c) (d) confiscation, nationalisation, requisition or destruction of, or damage to property by order of government, public or local authority, nuclear power generation or nuclear weapons, ionising radiations or contamination by radioactivity from any nuclear fuel, or from any nuclear waste from the fusion or fission of nuclear fuel. 6 What We Pay 6.1 Connected wrongful acts If a number of claims and/or enquiries reported to us all arise out of causally connected wrongful acts, they shall be deemed to be one claim and/or enquiry for the purpose of the application of the Sum Insured and the excess payable under this policy. They shall all be deemed to have been reported during the period of insurance in which the first claim and/or enquiry was reported to us. 6.2 Maximum amount payable The most we will pay you or on your behalf in total under this policy for all covered claims and/or enquiries during the period of insurance (including defence costs) is the Sum Insured shown in the schedule. 6.3 Excess We deduct the excess from the amount payable for any one claim and/or enquiry. 7

12 7 How To Claim Under The Policy 7.1 To make a claim You must: (c) (d) (e) (f) (g) You must not: Tell us as soon as you are aware of any circumstances likely to result in a claim under this policy. Take steps to minimise your claim, and try to avoid any further claim. Complete our claim form in full if we request it. Allow us to investigate the circumstances of the claim and provide any other information or assistance that we need. Authorise the disclosure to us of your personal information held by any other party that relates to your claim. Forward to us all relevant information and correspondence as soon as you receive it. Provide a statutory declaration to verify the claim, if we request it. Say or do anything that may prejudice our ability to: Defend, negotiate or settle any liability you face, and Make recovery from any person who may be responsible for your liability. 7.2 After you have made a claim After you have made a claim: We have the sole right to act in your name and defend, negotiate or settle any liability on your behalf at our expense. This includes publishing a retraction or apology in defamation proceedings. We may appoint the lawyer to defend you. That lawyer reports to us, and you agree to that lawyer passing all information on to us. (c) (d) (e) We are not required to defend a claim against you unless a mutually agreed lawyer advises that the claim should be defended after taking into account the following: (i) (ii) (iii) (iv) the economics of the matter, and the damages and costs likely to be recovered, and the likely costs of defence, and the prospects of successfully defending the claim. The cost of that lawyer s opinion will form part of the defence costs. In the event that the parties are unable to agree on a lawyer then the lawyer will be appointed by the President of the New Zealand Law Society. If that lawyer advises that the claim should be settled, and if the terms of the settlement that we recommend are reasonable in light of that lawyer s opinion, then: you cannot object to the settlement, and you must immediately pay the excess shown in the schedule. We may take over in full any legal right of recovery that you have. If we do so, you must fully cooperate with us at no cost. This includes completing court documentation and attending hearings if necessary. We may pay the maximum amount payable under this policy (or any lesser amount for which the liability can be settled), plus the defence costs incurred to date. This meets our obligations under the policy in full. 7.3 Dishonest or fraudulent claims If your claim is dishonest or fraudulent in any way, we may, at our discretion: Decline your claim, wholly or partially, and/or Declare this policy unenforceable from the date of the dishonest or fraudulent act. 8

13 General Conditions - applicable to all policies Acts of Parliament Where a policy refers to any Act of Parliament, this includes any Statutory Regulations made under it. It also includes any Act or Regulations enacted in substitution. Cancellation You may cancel any policy by giving us written notice. We will refund to you the unexpired portion of any premium you have already paid to us. We may cancel any policy at any time by giving notice to you. Cancellation will be effective from 4.00pm 30 days after the notice is given. The 30-day period starts on the day the notice is delivered, posted or ed to you. We will refund to you the unused portion of any premium you have already paid to us. Change in circumstances During each policy, you must tell us immediately if you know about any material fact that will: Increase the risk insured, or Alter the risk insured. After you have told us, we may immediately amend the terms of your policy, including the premium. If you fail to tell us, we may: Declare the policy unenforceable, or Refuse to pay any subsequent claim. Comply with the policy You, and anyone else covered under each policy, must comply with all the policy terms before we will pay any claim. Double insurance You must notify us immediately of any other insurance policy that covers any of the risks covered under a policy in this Faith Organisations Liability Insurance Portfolio. If there is another insurance policy, we will only pay over and above the limit payable under that policy. Goods and Services Tax and Currency Where GST is recoverable by us under the Goods and Services Tax Act 1985: All Sums Insured exclude GST (unless otherwise stated), and GST will be added, where applicable, to claim payments. All sums referred to in the schedule and each policy are in New Zealand dollars. Governing Law The law of New Zealand applies to each policy. Any disputes about a policy are subject to the New Zealand Courts' exclusive jurisdiction. Headings Headings in each policy are for reference only. They do not form part of the policy, and are not to be used as an aid to interpretation. Honesty All statements and answers, whether by you or anyone else, must be true when you: Apply for this insurance, and Notify us about any change in circumstances, and Make any claim. Notices Notices from you to us must be in writing and delivered personally, posted or ed to us. Notices from us to you, must be in writing and delivered personally, posted or ed to your last known address, or that of your insurance broker. Separate insurance If more than one person or entity is insured under a policy, they are insured separately as though a separate policy has been issued to each person/entity. However, the limits contained in each policy are the most we pay to all persons and entities combined. 1

14 Take reasonable care You, and anyone else covered under each policy, must take reasonable care at your own expense to avoid circumstances that may result in a claim under that policy. The claim under the policy will not be covered if you, or they, are reckless or grossly irresponsible. 2

15 ansvar.co.nz New Zealand AD PO Box 7042 Wellesley St Auckland 1141 FX EM insure@ansvar.co.nz Ansvar Insurance Ltd. Member of the Ecclesiastical Insurance Group