Cyber Liability Insurance

Transcription

1 Cyber Liability Insurance Contents Declaration form A summary of cover A statement of demands and needs Our range of services Our terms of business agreement How to proceed Please ensure that you read this document thoroughly. Should you wish to proceed with the insurance, please select the level of cover required from the proposal form and return this together with your cheque in settlement. Cheques should be made payable to Jelf Insurance Brokers Ltd. All completed forms should be signed and returned to the address below. Alternatively, scan and send your completed form to enquiry.professions@bluefingroup.co.uk. Bluefin Professions Castlemead Lower Castle Street Bristol BS1 3AG Cover will only commence once the enclosed declaration form and payment have been received, accepted and acknowledged by Bluefin. A copy of this application pack should be retained for your insurance records. A copy of your policy wording can be downloaded from our website at the following address: As a client of Bluefin you will have access to the following additional benefits: Free legal and tax advice helplines Free health, medical and counselling advice helplines We would also take this opportunity to remind you that you are responsible, on an ongoing basis, for providing us with all material facts relating to the insurance cover we have arranged on your behalf. Failure to advise material changes at the earliest possible opportunity may mean that your cover is invalid. If you are in any doubt as to what facts are considered to be material then you should disclose them to us. Bluefin Professions is a trading name of Jelf Insurance Brokers Ltd which is authorised and regulated by the Financial Conduct Authority (FCA). Not all products and services offered are regulated by the FCA. Registered in England and Wales number Registered Office: Hillside Court, Bowling Hill, Chipping Sodbury, BS37 6JX. Cyber liability insurance 2018 v1.0

2 CyberEdge Declaration Instructions The following proposal form is only applicable to proposed policyholders with total gross revenue of 20,000,000 or less and excludes Insurance Brokers and Independent Financial Advisors. Please request a Proposal Form if you fall outside of these parameters. Signing or completing this proposal does not bind the Proposer, or any individual or entity he or she is representing to complete this insurance. Please provide by addendum on the Company headed paper of the Proposer any supplementary information which is material to the response of the questions herein, and/or complete answers to the listed questions if they do not fit in the space provided on the application. For the purpose of this proposal form, Proposer means the entity stated below and all its subsidiaries to be covered. All answers should be given as a group response i.e. if any subsidiary company has different responses these should be provide separately on your headed paper. Cover will only commence once this declaration form and payment have been received, accepted and acknowledged by Bluefin. 1 Proposer information Company name Registered address Business address Postcode: Business description / industry Postcode: Web address Total gross revenue / fee income for the last financial year YYYY Number of client records 2 Cover selection Based on the total gross revenue for the last financial year, tick the box indicating the Premium for the option required. Limit of Liability (Any one claim and in the aggregate) Total Gross Revenue 100,000* 250,000* 500,000* 1,000,000* 2,000,000* 3,000,000* Excess** Up to 100, , , , ,001 to 250, , , , ,0001 to 500, , , , ,001 to 1,000, , , , , ,000,001 to 2,500, , , , , , ,500,001 to 5,000, , , , , , , ,000,001 to 10,000,000 1, , , , , , , ,000,001 to 20,000,000 2, , , , , , , If you require a limit of liability above the 3,000,000, or the total gross revenue is above 20,000,000, approach your Broker to obtain a specific alternative quote. Please note that this document does not represent a unilateral offer and that the terms herein are subject to confirmation by the Insurer. *Standard premiums above are including insurance premium tax currently levied at 12%. A Bluefin administration fee of 35 will be added to the total. **Applicable to all sections of the policy, except for First Response where Nil excess applies. 3 Coverage. Coverage Sub Limit of Liability Separate Excess A. Event Management Full policy limit General policy excess A.1 First Response Full policy limit Nil excess B.1 Data Protection Investigators Full policy limit General policy excess B.2 Data Protection Fines Full policy limit General policy excess C. Liability Full policy limit General policy excess Bluefin Professions CyberEdge Declaration v1.0

3 4 Optional extensions If you would like to add any of the optional extensions, tick the box(es) indicating the option(s) required. Coverage Sub Limit of Liability Separate Retention/Excess Additional Premium *** Digital Media Full policy limit General policy excess 10% of standard premium Cyber / Privacy Extortion Liability Full policy limit General policy excess 5% of standard premium Outsource Service Provider 100,000 General policy excess 10% of standard premium Network Interruption Full policy limit Waiting period 12 hours 25% of standard premium *** Select the optional extra cover required and add the percentages together to find the TOTAL PERCENTAGE to be added to the STANDARD PREMIUM Total % to add to STANDARD PREMIUM % If you have ticked to include the Outsource Service Provider extension please complete the following questions: (N.B. An OSP is defined as an entity which is not owned, operated or controlled by the Company that the Company has appointed to provide specified services) i) Please provide the name of the biggest outsource provider used ii) If applicable, please provide details of the second largest outsource provider used iii) Please confirm what type of service is being provided: a) Application Service Provider b) Data Centre Hosting c) Data Processing d) Intrusion Detection e) Managed Security f) Other please provide details below 5 Premium calculation Standard premium from page 1 (inclusive of IPT) Add % for optional extensions (if applicable) (inclusive of IPT) Add Bluefin administration fee Total Premium Due (inclusive of IPT and administration fee) 6 Conditions Applicable Wording: AIG CyberEdge Version: CyberEdge 2014 Retroactive Date Inception Period requested: 12 months with inception from / / Quote valid for: 30 days from date of declaration

4 Confirmation of insured s status I/We confirm that the Insured and its subsidiaries: a) Are not Financial Institutions, Medical, Call Centres, Telemarketing, Data Processing (outsourcers), Internet Service Providers, Telecommunications b) Have security software controls (Antivirus protection, firewalls, intrusion detection, vulnerability testing) on all IT systems, including portable devices c) Have back up and recovery procedures for all mission critical systems, data and information assets d) Do not have any domiciled operation or derived revenue from the territory/jurisdiction of USA and/or Canada e) Has a documented Business Continuity Plan (BCP) or Disaster Recovery Plan (DRP) YES NO f) After a full enquiry of its directors and officers, do not have any knowledge of any act or omission, fact, event or circumstance which might give rise to a loss under this Cyber Edge insurance contract If you tick NO to any of the above statements, please provide full details and approach Bluefin to obtain a specific alternative quote. Declaration Your duty to make a fair presentation of the risk You must make a fair presentation of the risk to us when you take out, renew or amend your policy. A fair presentation requires you to tell us about all facts and circumstances which may be material to the insurance or sufficient information to put a prudent insurer on notice that further enquiries are needed, in a clear and accessible manner. Material facts are those which are likely to influence an insurer in the acceptance or assessment of the terms or pricing of your policy. If you are in any doubt as to whether a fact is material, you should tell us about it. If you fail to make a fair presentation of the risk, where that failure is deliberate or reckless, the insurer may treat your policy as if it had not existed, refuse to pay any claims and keep the premium paid. Where the failure is not deliberate or reckless but the insurer would not have accepted the policy had you told them about a material fact or circumstance, the insurer may treat your policy as if it had not existed and refuse to pay any claims but must return the premium. In other cases, the insurer may only pay part of the value of your claim or impose additional terms. For these reasons, it is important that you check all of the facts, statements and information set out in the documentation provided by us are complete and accurate, and that you answer any questions completely and accurately. If there is more than one person involved in your business or employed by you, you should check with them, where appropriate, that the facts and statements that you make are complete and accurate. If any of the facts, statements and information in this document, or any additional information provided are incomplete or inaccurate, you must contact us immediately. Failure to do so could invalidate your policy or lead to a claim not being paid. I declare that the above statements and particulars are true, full enquiry having been made, and I have not omitted, suppressed or misstated any material facts and undertake to inform the insurer of any change to any material fact. I understand that the information provided will be used by the insurer and/or their agents to arrange and administer the insurance and in handling claims which may necessitate sharing information with third parties and that information may be shared with business partners to deliver any additional services provided with this insurance. A copy of this proposal should be retained by you for your own records This form must be signed by a principal of the firm Signature: Date: / / Print name: Position: Please return this application form along with any other supplementary information sheets to the address detailed below:- Bluefin Professions Castlemead Lower Castle Street Bristol BS1 3AG t: enquiry.professions@bluefingroup.co.uk Bluefin Professions is a trading name of Jelf Insurance Brokers Ltd which is authorised and regulated by the Financial Conduct Authority (FCA). Not all products and services offered are regulated by the FCA. Registered in England and Wales number Registered Office: Hillside Court, Bowling Hill, Chipping Sodbury, BS37 6JX Jelf Insurance Brokers Ltd

5 Summary of cover AIG CyberEdge The following information is a brief outline of the cover provided by the AIG CyberEdge policy. It is only a summary for general guidance and scope and terms are subject to the terms and conditions of the policy wording, CyberEdge 2014 (Ref: CIS /13). You are advised to read the policy document in full in order to ensure that you understand the cover provided. Policy summary features and benefits The best way to protect against cyber attacks is to prevent them in the first place, but sometimes that is not possible. If the first line of your defence is breached, CyberEdge is designed to help you manage and control the impact and get back to business as usual. The typical covers available are: First Response A specialist response service that you can access in the event of a data or privacy breach and thereby ensure your and your customer s positions are protected Immediate response from a breach coach within 1 hour of notification Expert forensics, what s been affected, how can it be contained, repaired or restored Expert legal response and PR consultancy to contain reputational damage Main exclusions The First Response fees and expenses will only be paid during the 48 hours from notification Consultancy services All necessary costs and expenses up to your selected sum insured incurred in determining whether electronic data can or cannot be restored or recreated Professional consultancy costs to prevent or minimise potentially adverse effects of a newsworthy cyber event Costs of notifying data subjects who may be affected by the breach and costs of credit monitoring to prevent further losses Main exclusions The Insurer will only pay fees and expenses for the above that are incurred during 185 days from notification Data Protection Legal costs incurred to defend a criminal prosecution or an enforcement action brought under the Data Protection Act Defence costs in respect of any regulatory investigation Data protection fines and penalties that you are legally liable to pay in respect of any regulatory investigation Main exclusions Regulatory investigation will not include any industry-wide, non-firm specific, inquiry or action Excludes any criminal fines and penalties Liabilities Necessary costs and expenses to defend a claim against you and damages awarded in connection with: Any breach of personal or corporate data Contaminating someone else s data with a virus Theft of system access code Jan 2015 AIG CyberEdge2014 CIS /13

6 Theft of hardware containing personal data A negligent act or error by an employee in relation to any of the above Optional extensions Digital Media Liability Defence costs and damages relating to your performance of or failure to perform digital media activities arising from the following wrongful acts: Libel or slander Unintentional infringement of intellectual property rights Infringement of privacy or breach of confidentiality Plagiarism, piracy or misappropriation Passing off Main exclusions Any loss arising out of the publication of financial data Any broadcast on your internal messaging services Any infringement of trademarks Any claim in relation to disputes over the ownership or exercise of rights in digital media Any software copyright infringement Cyber/Privacy Extortion Liability Monies paid in relation to an extortion threat relating to your data or data held on behalf of a third party company Ransom monies Necessary fees to conduct an investigation to determine the cause of and to end an extortion threat Main exclusions Any loss arising out of a threat made by a government entity or public authority It is a condition precedent under this section that you must notify the Cyber Extortion Advisor immediately in the event of an extortion threat at the contact details provided in the policy Schedule Network Interruption Insurance Cover for loss of net profit following a material interruption to your network caused by a security breach, including: Receipt of or transmission of malware which causes damage to third party data Physical theft of hardware Theft of a password or network access code Conditions There is no cover provided in the first 12 hours of a material interruption Mitigation costs during a material interruption to be paid after half of the Waiting Period has elapsed Written proof of loss to be provided within 180 days after resolution of the material interruption Main exclusions Any claims made by third parties Any network loss involving an order of any government entity or public authority, other than as a result of a Regulatory Investigation Network interruption caused by loss of communications with a third party Legal costs, unfavourable business conditions or removal of software programme errors Enhancement of system to a level beyond what existed prior to the loss Any failure of any hosted computer infrastructure or computing platforms Jan 2015 AIG CyberEdge2014 CIS /13

7 Outsource Service Provider (OSP) Cover responds to a security failure at your OSP that results in the loss of protected data or stops you accessing data or services. Legal and consulting costs to manage and mitigate the incident Costs of reconstituting data and software Network interruption loss resulting from a material interruption to an OSP s computer system OSP interruption and mitigation costs Conditions Written proof of loss to be provided within 180 days after resolution of the material interruption Main exclusions Any network loss involving an order of any government entity or public authority Network interruption controlled by an OSP caused by failure of an electronic device Legal costs, unfavourable business conditions or removal of software programme errors Enhancement of system to a level beyond what existed prior to the loss Any failure of any hosted computer infrastructure or computing platforms Significant exclusions and limitations Please refer to the policy wording for all exclusions and conditions of cover that apply. Notable exclusions, applicable to the whole policy, include: Antitrust violation, restraint of trade or unfair competition Any deliberate, intentional or reckless act committed by or in collusion with your directors, principals, partners or responsible officer Any dishonest, fraudulent or criminal act committed by or in collusion with your directors, principals, partners or responsible officer Infringement of intellectual property due to unauthorised disclosure Obligations to make licensing fees or royalty payments Violation of any law or regulation relating to the purchase or sale of securities Face value of coupons, price discounts, prizes or awards given in excess of the contracted amount Failure to put right deficiencies that a responsible officer was aware of Rectifying deficiencies that existed prior to the security or system failure Wrongful collection of corporate or personal information Fees, compensation or costs of providing services In addition, points a - g under the Confirmation of insured s status on the final page of the separate CyberEdge Declaration form part of the policy contract and may affect the cover provided under this policy. It is, therefore, important that you have answered those questions honestly and accurately. Limit of Liability The limit of liability is an aggregate limit for the policy period and is the total amount payable in respect of all insurance covers, including any cover provided by the optional extensions. Except with respect to First Response and OSP First Response of the Outsource Service Provider Additional Coverage Section (if purchased) where the insurers liability is in addition to the limit of liability but limited to the fees and expenses incurred within the first 48 hours of notification. A sub limit of 100,000 will apply to the Outsource Service Provider extension, and is included in the overall limit of indemnity. Policy excess General policy retention varies depending on total gross revenue: Up to 1,000,000 revenue, 1,000 retention 1,000,001 to 5,000,000 revenue, 2,500 retention 5,000,001 to 10,000,000 revenue, 5,000 retention 10,000,001 to 20,000,000 revenue, 7,500 retention No retention is applicable to First Response or OSP First Response of the Outsource Service Provider Additional Coverage Section (if purchased) Jan 2015 AIG CyberEdge2014 CIS /13

8 Claims notification This policy is underwritten on a claims made basis which means that the policy will only respond to claims that are first made against the insured and notified to the insurer during the policy period. It is a condition precedent that all claims are to be made in writing as soon as practicable and no later than 60 days after the end of the policy period. Failure to comply with a condition precedent could result in the insurer avoiding a claim. The insurer The insurance policy is underwritten by AIG Europe Limited Policy duration This is an annually renewable policy Law applicable The laws of England and Wales apply to this policy Cancellation rights You may cancel this policy and as long as no claims have been made or circumstances notified prior to the cancellation the insurer shall retain 25% of the original premium plus the pro-rata proportion due for time on risk. The insurer can cancel the policy giving you a minimum of 30 days written notice (10 days in the event of cancellation for non-payment of premium). In such case the insurer shall be entitled to a pro-rata proportion of the premium. Complaints Sometimes things may not go entirely to plan. Both Bluefin and the Insurer welcome the opportunity to discuss any concerns that you may have about any aspect of the service you have received. Should you wish to discuss a problem please contact Bluefin in the first instance at the following: Bluefin Professions Castlemead Lower Castle Street Bristol BS1 3AG Tel: Fax: If Bluefin are unable to resolve your complaint then this can be referred to the insurer at the following: Claims related complaints Head of Financial Lines & Professions Claims Claims Manager 58 Fenchurch Street London EC3M 4AB Tel: claims.fl2@aig.com All other complaints Customer Relations Unit AIG Europe Limited 2-8 Altyre Road Croydon CR9 2LG Tel: Fax: uk.customer.relations@aig.com Financial Services Compensation Scheme (FSCS) The insurer is covered by the FSCS and you may be entitled to compensation from the scheme in the unlikely event that the insurer cannot meet its obligations. This depends on the type of business and the circumstances of the claim. Full details are available at Jan 2015 AIG CyberEdge2014 CIS /13

9 Our range of services What we do for our commercial customers The services delivered to you by our trained, professional staff depend upon the particular risks you face and your insurance cover requirements. Here are some examples of what we may do for you, depending on your individual circumstances: Initially and at renewal confirm the purpose of making contact with you answer your queries and provide insurance advice collate and check the information required to review your insurable risks. Market search identify insurance products that match your needs review relevant insurers for their suitability, including things such as pricing, policy terms, service standards, claims service present your requirements to insurers monitor the receipt of insurers quotations and negotiate price, terms & conditions. Presenting our recommendations provide a breakdown of the price give an explanation of the cover including any significant or unusual conditions or exclusions explain the scope of our search of the market clarify on whose behalf we act when arranging your policy tell you if we have used another intermediary to place your insurance cover clarify on whose behalf we act for when dealing with a claim make clear any fees or charges due in the period of the policy in addition to the insurance premium. Confirming cover discuss our personal recommendation and take your instruction as to how you wish to proceed request insurers to start cover and confirm to you when they have agreed check the policy is issued correctly and meets your demands and needs. Day-to-day Claims carry out regular analysis of the insurance market to enable us to provide you with professional advice answer queries on the policy cover, insurance matters or proposed change to your insurance risk confirm mid term adjustments to your insurer under your instruction. report claims on your behalf or ensure you have the relevant contact details for speedy reporting of a claim liaise with your insurer or with the loss adjuster they may appoint. Accounting - we will arrange monthly payments if requested (subject to qualification) issue an invoice detailing the payment we require reconcile your payment and pay your insurer obtain return premiums for you, when appropriate. You are entitled, at any time, to request information regarding any commission which we may have received as a result of placing your insurance business. Cyber Liability Advised Jan 2015

10 Statement of demands and needs Client name Business description We ve assessed what you need based on the information you gave us, and our recommendations are summarised below. Your main requirements are for insurance policies that give you the following cover: Policy type Cyber Liability Insurance Your main requirements You require a policy that provides cover against risks associated with accidental loss or misappropriation of electronically stored data or unauthorised accessing of your computer system. We recommend: Policy type Cyber Liability Insurance Recommendation We are recommending a policy from AIG (Europe) Ltd, because they have become one of the market leaders in cyber liability insurance. In addition to the above, the cover from AIG also includes; your accidental contamination of a third party s data with a virus indemnity for your legal liability arising out of breaches of data protection legislation following a cyber attack access to specialist PR consultants to help manage any serious data breach should one occur Cyber Liability Advised Jan 2015

11 Our capacity and services The capacity in which Bluefin is acting Bluefin usually acts as your agent in its capacity as an insurance intermediary. Because of this we are subject to the law of agency, which sets out our duty of care to you. In some circumstances, we may act for and have a duty of care to insurers. The following table sets out these circumstances, so you can see any possible conflicts of interest. Sourcing a suitable policy when we get quotes for you Placing the insurance when we arrange for your cover to start In the event of a claim Cyber Liability Insurance We act We act We act We act We will We will as your as agent as your as agent act as act as agent of the agent of the your agent of insurer insurer agent the insurer How we made our selection Policy Cyber Liability Insurance Market selection Fair Limited Single Other Delegated analysis number of insurer intermediary authority insurers What we mean by: Fair analysis: we have carried out a fair analysis of the market in order to identify a suitable product. This means that we have compared products from a sufficiently large range of insurance providers in terms of cover, price, quality of service and other relevant features in order to select an appropriate policy for you. Limited number of insurers: our search for a product to meet your requirements has involved a limited number of insurers. We are happy to discuss with you the scope and outcome of our search. You can ask us at any time for a list of the insurers we may, and do, use. Single insurer: we have chosen to approach one insurer for this specific type of insurance. You can ask us at any time for a list of the insurers we may, and do, use. Other intermediary: to access the insurance product that best suits your needs, we will use another intermediary to place your business. Delegated authority: the terms for your policy have been provided using an authority delegated to us by an insurer. Cyber Liability Advised Jan 2015

12 The duty of disclosure and fair presentation Please read this guidance note carefully, as any failure to comply with the duty of fair presentation and disclose material information to your insurer could adversely affect the validity of your insurance policy. If you have any questions, please do not hesitate to contact your usual Bluefin adviser. REMEMBER You are responsible for the accuracy and completeness of all the information you provide to us and to your insurer. Your Obligations If you are a business and your insurance policy is governed by English law, you must, at all times, act with utmost good faith towards your insurer. Before your policy is placed, at renewal, and when varying or extending the policy you have a duty under the Insurance Act 2015 to make a fair presentation of the risk and you must disclose to your insurer all information, facts, and circumstances which are, or ought to be, known to you and which are material to the risk. In addition, if your policy contains a particular clause stating that any change in circumstances must be advised to your insurer, you will also have to disclose certain information during the policy period. When providing information or completing a proposal form or otherwise confirming any information to your insurer, you should take care to ensure that the details provided are complete and accurate. Even where a proposal form is used, you should note that your duty to make a fair presentation is not confined to answering the specific questions listed in the form and/or asked by us or your insurer and that all material circumstances should be disclosed to your insurer, regardless of whether or not your insurer has asked for the information. The Insurance Act 2015 gives some guidance as to what a fair presentation of the risk means: You must disclose every material circumstance which is known by: i. your senior management (the Act defines senior management as those individuals who play significant roles in the making of decisions about how the insured s activities are to be managed or organised ); and ii. those individuals responsible for arranging your insurance (which includes risk managers and any employee who assists in the collection of data, or who negotiates the terms of the insurance, such as your individual brokers). 1 You ought to know what should reasonably have been revealed by a reasonable search of information available to you. This means you must conduct a reasonable search for, and disclose, material information that is available to you. It is important to note that this includes not only information held within your organisation 2 but also outside it, including information held by your agents, and also by persons and entities who are to be covered by the insurance. You must not make any misrepresentations to your insurer. You must provide the information to your insurer in a manner which would be reasonably clear and accessible to a prudent insurer. This is a new standalone, duty. What is Material? Under English law, every circumstance is material if it would influence the judgement of a prudent insurer in fixing the premium and/or the terms of the insurance and/or determining whether to accept the risk. This refers to any prudent insurer, not just the insurer who has been offered the risk. A circumstance may be material even if disclosure would not necessarily lead to an increased premium or declinature of the risk.

13 In the context of business insurance policies, insurers are likely to regard matters such as, but not limited to, the examples detailed on the following page of this document as material. If you are unsure whether a fact or circumstance should be disclosed, or whether the duty to disclosure information continues throughout the period of a particular policy, we recommend that you disclose the information anyway, as failure to do so may lead to your insurer reducing its claim payment, applying additional terms or even avoiding the policy. When to disclose Your duty to make a fair presentation applies throughout the negotiations preceding the placing of your policy until your insurer has agreed to accept the risk and has set the terms, price and level of participation, and the contract has been finalised. After the policy has been placed, your duty to make a fair presentation arises again: if you wish to make changes to the policy so that your insurer takes additional risk; or when there is an extension of the policy period; or when a policy condition requires you to advise your insurer of a specific increase or alteration in risk. Your duty to make a fair presentation and disclose material facts and circumstances also arises again during the renewal process. Failure to disclose The consequences of failing to comply with the duty of fair presentation and failing to disclose a material fact or circumstance will depend on the precise terms of your insurance policy. The Insurance Act 2015 sets out remedies that your insurer will have if you fail to comply with the duty of fair presentation. Your insurer s remedies will depend on whether or not your failure was deliberate or reckless: If you deliberately or recklessly fail to comply with your duties, your insurer will be able to avoid the policy, that is, to treat it as if it had never existed, and may retain the premium. If your failure to comply with your duties was not deliberate or reckless, your insurer s remedy will depend on what the insurer can show it would have done had you made a fair presentation of the risk : If your insurer would not have entered into the contract on any terms, it can still avoid the contract but must return the premium; i. If your insurer would have entered into the contract but on different terms (not relating to premium), the contract may be treated as if it included those terms from the outset; ii. If your insurer would have entered into the contract but would have charged a higher premium, the amount paid on a claim may be reduced proportionately. Please note that the proportionate remedies available to your insurers under the Insurance Act 2015 will also apply to alterations made to policies on or after 12 August 2016, even if the policy commenced before this date 3 1 If you are an individual taking out a business insurance policy, for example if you are a sole trader or a trustee, you must disclose the material information that you know and this is known by the individuals responsible for arranging your insurance. 2 If you are an individual taking out a business insurance policy, this means that it will not only be information that is known or held by you that may have to be disclosed. 3 Similar proportionate remedies are available to your insurer in the event of a breach of the duty of fair presentation in relation to a variation of your policy made on or after 12 August 2016, and will depend on whether the breach was deliberate or reckless and what the insurer can show it would have done had the duty not been breached. This may result in the insurer treating the policy as if the variation was never made, reducing your claim payment, applying additional terms, or even avoiding the entire policy.

14 Non-exhaustive illustrative examples of material information Circumstances which may be considered material are: Special or unusual facts relating to the risk. Any particular concerns which led you to seek insurance cover for the risk. Anything which would generally be understood as something that should be disclosed for the type of risk in question. By way of example: General information about your business Business activity (or change to business activity), including processes, products and geographical presence. New companies, markets, acquisitions, or disposals. Additional premises/insurable items Changes to premises Higher than ordinary degree of risk or liability (specific to your business or industry-specific). Business financial status. Loss history/experience, including paid and outstanding claims and potential claims / circumstances / incidents / losses that were not reported as claims (whether insured or not). Details of criminal charges and convictions of your organisation, its directors or employees; regulatory investigations or enforcement / health and safety investigations and prosecutions. Any insurers previous declinatures, refusals to renew, imposed terms / restrictions in cover, midterm cancellations, etc. Material damage policies Changes in construction and/or purpose. New/amended processes. Changes to fire protections. Increased storage of hazardous materials / attractive stock. Any attempted break-in or arson attack Use of temporary / third party premises. Liability policies Changes to business activities (including disclosing historic activities that have ceased). The creation or acquisition of new companies for which cover is required. Products export to, or work in, overseas territories (particularly the USA or Canada). Work in or on hazardous locations such as offshore installations. Health and safety investigations / prosecutions. Motor fleet policies Driving convictions. Corporate investigations / prosecutions. Undisclosed accidents. Changes to vehicle performance. Change of use of vehicle. Business personal accident and travel policies Changes to business activities. Material differences in the travel pattern (different geographies, number of journeys, etc.). REMEMBER this list provides examples only. If in doubt disclose.

15 Instructions and guidance Your operations in countries / regions / territories that are subject to sanctions You must notify us with the relevant details of all circumstances, including those which may arise during the period of your insurance cover, involving activity by your business or its group companies (including direct or indirect imports and exports, other forms of trading, services, travel and working abroad) in the following countries, regions, territories: Belarus, Crimea, Cuba, Democratic Republic of Congo, Iran, North Korea, Russia, Somalia, South Sudan, Sudan, Syria, Ukraine and Zimbabwe. Confidentiality and copyright To protect our intellectual rights we ask that you don t show this pack, or the advice within it, to anyone else or reproduce it for them. Key conditions Please take time to read your policy documents and make sure you understand the terms and conditions. If you breach the conditions of your policy any claim you make might not be paid or your cover might be withdrawn. Reasonable care Despite being insured, you still need to take the same care that you would if you weren t insured. And if something happens that could lead to a claim, you need to take reasonable steps to minimise any losses. Subjectivities Sometimes your insurer will need specific information from you or ask you to take particular action, and generally you will still be covered while doing what they ve asked. If this happens we will make sure you know what to do and by when, and what will happen if you don't. Warranties and conditions precedent Your policy will tell you clearly what you need to do to comply with 'warranties' and 'conditions precedent'. If you don't comply then a claim, or claims, may not be paid until the warranty or condition is complied with. Terrorism Most policies don't insure you against losses caused by terrorist activities. You can usually arrange separate cover for this, so please get in touch if you d like a quotation. Complaints Sometimes things may not go entirely to plan. Both Bluefin and the insurers we deal with welcome the opportunity to discuss any concerns that you may have about any aspect of the service you receive. Should you need to discuss a problem, please contact us in the first instance. Details of how to contact the insurer will be in the policy document. Law applicable You and the insurers are free to choose the laws applicable to a policy. As insurers are based in England, they propose to apply the laws of England and Wales and by purchasing a policy you will have agreed to this.

16 Commercial Terms of Business The purpose of this document is to set out the professional relationship and the services Jelf Insurance Brokers Limited (registered office: Hillside Court, Bowling Hill, Chipping Sodbury, Bristol BS37 6JX and company number: ) will provide to you. This is our standard client agreement upon which we intend to rely ( Terms of Business ). For your own benefit and protection you should read the terms carefully and in particular, we would like to draw your attention to sections 7 ( Client money ), 13 ( Information and changes we need to know about ) and section 19 ( Limit of liability ). If there are any terms which you do not understand, please ask us for further information. Jelf Insurance Brokers Limited is authorised and regulated by the Financial Conduct Authority ( FCA ) with FCA reference number and you can check our permissions and the names under which we trade on the FCA s website or by calling them on (freephone) or Not all products and services offered are regulated by the FCA. We will tell you where this is the case. For the purposes of this agreement the term affiliate means any member of our group, which means our subsidiaries, ultimate holding company and all of that ultimate holding company s subsidiaries as defined in section 1159 of the Companies Act In the interests of security, staff training and to generally improve our service please be aware that telephone calls may be monitored and/or recorded. 1. Our services 1.1. We are an insurance intermediary and risk consultant, and will act on your behalf in arranging your insurance requirements. However, in certain circumstances we may act for or owe a duty of care to other parties such as insurers. We will inform you when these circumstances occur so you will be aware of any possible conflict Insurance policies taken out, amended or renewed through our online/remote service (i.e. without speaking to one of our advisors) will be on a non-advised basis. This means information will be provided in order for you to make an informed decision about any insurance transactions undertaken by you. You should therefore ensure such transactions are suitable for your needs If you speak to one of our advisors about taking out, amending or renewing your policy, then you are likely to do so on an advised basis. This will include the provision of advice and recommendations where appropriate, in order to ensure insurance discussed is suitable for your needs We offer a wide range of products and our services may include: advising on and recommending insurance cover following an assessment of your demands and needs; negotiating terms on your behalf with insurers; providing you with sufficient information so you can make an informed decision as to which policy you want; making arrangements with the insurer for your policy to start; and helping you with any on-going changes you have to make and providing assistance should you need to make a claim Depending on the type of cover you require, we will either: look at a range of insurers that is representative of the insurance market; or select from a limited panel of insurers; or offer you a contract from a single insurer We will confirm which one of these applies before we arrange your insurance contract. A list of the insurers considered will be available on request Any information we provide on insurance regulatory and tax issues will be based on information available publicly and our experience from working on similar matters for other clients. We are not qualified to provide, and will not provide, legal, accounting, regulatory or tax advice. We recommend that you obtain your own advice on such matters from relevant professional advisers As part of our negotiations with insurers on your behalf, we may on occasion be able to obtain more favourable terms and conditions for your placement by providing insurers with certain types of information. Where we believe your interests would be advanced by doing so, you authorise us to do the following: at the outset of the negotiations, to provide insurers with the terms of the expiring policy, including pricing, and/or a pricing JIB Combined Commercial GI & EB April 2018 Page 1 of 8

17 objective for your placement; during negotiations, to provide one or more insurers with the terms of a quote received from another insurer, where in our judgment doing so may lead to improved terms for you; and at the end of negotiations, to provide one or more insurers with an opportunity to submit an improved quote after all other quotes have been received We will be entitled to provide the services ourselves or, where appropriate, through one or more of our affiliates or subcontractors. 2. How we are paid 2.1. In most cases we are paid by commission from the insurer but in some circumstances, we may charge you a fee instead of commission or a combination of both. We may also receive an additional UK brokerage commission on certain policy placements, which will be retained by Jelf any arrangements we have with you for the rebating of commission will not apply to this fixed brokerage We receive payments from insurers for providing consulting, data analytics and other services. These services are designed to: improve the range of products we can offer to our clients; help insurers to identify new opportunities; and make insurers more efficient The scope and nature of these services vary. A list of insurers who pay us for consulting services is available on request by writing to markets@jelf.com In addition to commission payments and/or client fees, we may also receive remuneration for certain consultancy, administrative and other services provided to insurers (e.g. risk management services or claims preparation) or income derived from the arrangement of finance (see section 4) or other services with third party suppliers We will also make individual charges of up to 45, per policy (up to a maximum of 3 policies, per policy period) to cover the costs associated with administering your insurances e.g. arranging a new policy, carrying out short-period or mid-term cancellations, providing replacement or duplicate documents and for other administrative tasks. If you make midterm changes to your policy, a charge of up to 45 will apply to the third and each subsequent policy change during the policy period. We will advise you of the amount of fee before you become liable to paying it. Individual charges will not be made in relation to employee benefit-related products If you make a change, or cancel your policy midterm which results in a return of premium, we will retain any commission and/or fee amount to cover our administration and advisory costs. This amount will be specified to you during the transaction process If you would like details of how much commission we earn for arranging your policy, please let us know. 3. Premiums 3.1. You must settle the premium(s) due in cleared funds in accordance with the amounts and payment dates specified in our correspondence with you. Failure to meet the payment dates may lead to insurers cancelling your policy, thus leaving you without insurance cover. Please note that where insurers have specified that the premium must be settled by a certain date (i.e. premium payment warranty ), failure to comply can result in the automatic termination of your insurance contract Premiums can be settled direct with the insurer or in many cases can be paid by premium finance (see section 4) or paid to us (see section 7 client money) Please also note that your policy cover will cease if you fail to keep up payments on an instalment agreement or premium finance facility related to it. 4. Premium financing For the purposes of arranging premium finance, Jelf Insurance Brokers Limited acts as a credit broker and in arranging premium finance, we are acting on behalf of and owe a duty to the premium finance provider. We work exclusively with Close Brothers Limited, trading as Close Brothers Premium Finance ( Close ) to provide a premium finance facility to our insurance clients a loan with Close is designed for the repayment of insurance premiums only. We will provide you with information about this payment option on a non-advised basis i.e. we are not providing you with advice as to the choice of finance provider or the suitability of the premium finance product and you will need to make your own decision about whether to JIB Combined Commercial GI & EB April 2018 Page 2 of 8

18 proceed. If you do elect to finance your premium payments via Close, Jelf Insurance Brokers Limited will receive a payment in return for the work that it undertakes on behalf of the finance provider. Acceptance is subject to status and terms & conditions apply and Close may undertake an enquiry with a credit reference agency such as Experian when you make an application. The credit reference agency will add details of the search and the application to their record about you whether or not the application proceeds. Further details will be provided when an application for finance is made. Insurers own credit facilities may also be available if appropriate. 5. Awareness of policy terms & conditions When your policy is issued, you are strongly advised to read it carefully as it is that document, along with the schedule/certificate, that details the policy terms and conditions of the insurance contract you have purchased. You should make sure the documents are accurate and contact us if they contain any errors. If you are in any doubt over any of the policy terms or conditions or you do not understand them, please ask a member of our staff for further clarification. 6. Claims service 6.1. As part of our service, whilst we are your appointed broker, we will help you submit a claim on your policy to your insurer but it remains your responsibility to have read, understood or queried all documentation upon receipt. We may also provide a claims handling service but should we do so, we reserve the right to charge a reasonable fee for our services. In the event that we no longer act as your appointed broker, we may provide (at your request) a claims handling service or if we are already providing one, continue to provide a claims handling service but in each case, subject to payment of a reasonable fee All incidents that could possibly give rise to a claim must be notified to us or your insurer in accordance with the terms of your policy and a claim form completed where required. If you are unsure whether a matter constitutes a claim or not, please contact us and we will advise you. A delay in notifying a claim and/or completing required forms will risk a loss you/the policyholder suffer not being paid in part or in full. You should not, however, admit liability or agree a course of action, other than emergency measures carried out to minimise the loss, until you have agreement from your insurer. 7. Client money 7.1. Client money is money that we receive and hold on behalf of our clients over the course of our relationship such as premium payments, premium refunds and claim payments. We hold this either on your behalf or on behalf of your insurer(s) as determined by the agreement we have in place with each insurer In most cases we will have an agreement with the insurers where we act as agent for the insurer and any money received by us will be treated as if it has been received by the insurer and the insurer will bear the risk of any losses in the event that our firm becomes insolvent. In the same way, we may also have an agreement with the insurer that any claims money or premium refunds received by us from the insurer will not be treated as received by you until they are actually paid over to you. We may hold both insurer and client money in the same bank account but when this happens insurers will have previously agreed that any claim by you on monies that are client money will come before their claim In cases where we do not have such an agreement with an insurer, we will hold your money in either a statutory or a non-statutory trust client money bank account. These accounts are governed by rules that seek to protect clients against any inability of an insurance broker to transfer premiums to an insurer, or to transfer refunds and/or claims money to a client The terms of a non-statutory trust account allow us to use the money held in trust on behalf of one client to pay another client s premium before it is received from that client and to pay premium refunds or claims before we receive payment from the insurer. This is in line with standard industry practice and we are not permitted to use client money for any other purpose. If you do not wish us to hold your money in a non-statutory trust account, please let us know Any commission due to us may be taken from the client money account and this may be taken before we pass the premium onto the insurer. If we earn interest on any money held in this account this will be retained by us and not passed on to you We may need to transfer money to an affiliate, where this is required, you authorise us to do so. If we use a third party to place your JIB Combined Commercial GI & EB April 2018 Page 3 of 8