Asset Recovery Appointment Insurance

Transcription

1 Asset Recovery Appointment Insurance Effected through: JLT UK LTD, t/a JLT Corporate Recovery Risks Corporate Recovery Risks St Philips Point Temple Row Birmingham B2 5AB Telephone: THIS IS TO CERTIFY that in accordance with the authorisation granted under Binding Authority Number : B A to the undersigned by certain Insurance Companies, whose names and the proportions underwritten by them appear below (all of whom are hereinafter referred to as Underwriters ) and in consideration of the premium specified herein, the said Underwriters are hereby bound, each for his own part and not for another, their Executors and Administrators, to insure in accordance with the terms and conditions contained herein or endorsed hereon. THE UNDERWRITERS hereby agree to the extent and in the manner hereinafter provided, to indemnify the Assured against loss or damage sustained or legal liability for accidents happening during the period stated in the Schedule, after such loss, damage or liability are proved. PROVIDED always that: 1) the liability of the Underwriters shall not exceed the limits of liability expressed in the said Schedule or such other limits of liability as may be substituted therefore by memorandum hereon or attached hereto signed by or on behalf of the Underwriters; 2) this Policy insures in respect ONLY of such of the sections hereof as are so specified in the Schedule. Continued Overleaf 1

2 IN WITNESS whereof this Policy has been signed as follows: 100% with GREAT LAKES REINSURANCE (UK) PLC The subscribing Underwriters obligations under contracts of insurance to which they subscribe are several and not joint and are limited solely to the extent of their individual subscriptions. The subscribing Underwriters are not responsible for the subscription of any co-subscribing Underwriters that for any reason does not satisfy all or part of its obligations. The Assured is requested to read this Policy and, if it is incorrect, return it immediately for alteration. This Policy is made and accepted subject to all the provisions, conditions, warranties and exclusions set forth herein, attached or endorsed, all of which are to be considered as incorporated herein. In Witness whereof, this Policy has been signed at the place stated and on the date specified in the Schedule on behalf of Authorised signatory Date 2

3 INDEX GENERAL DEFINITIONS..4 SECTION A SECTION B MATERIAL LOSS OR DAMAGE..5 PROPERTY OWNERS LIABILITY..14 GENERAL EXCLUSIONS.20 GENERAL CONDITIONS COMPLAINTS PROCEDURE

4 GENERAL DEFINITIONS APPLICABLE TO SECTIONS A - D OF THIS POLICY ASSURED The Insolvency Practitioner (s) firm, company or Court Order reference, and/or the Receiver, Manager or Trustee named in the Schedule BUSINESS Duties and activities undertaken by the Assured in the course or the furtherance of a Court order or appointment or duties, activities or actions related thereto. DAMAGE(D) Save where expressly provided otherwise, loss, destruction or Damage to the Property Insured DEFINED PERILS The Perils defined in Section A of this Policy EXCESS The first part of each and every loss which the Assured must bear after the application of any condition of average. PERIOD OF INSURANCE Any period for which the Underwriters may accept payment of a premium in respect of this Policy. POLICY The entirety of the Policy of insurance specified in the Schedule and/or contained in any and all endorsements or amendments forming part of the Policy (whether or not such endorsements or amendments are agreed prior to the Policy of insurance coming into force or at any time thereafter). All references to the terms of this Policy shall be construed as references to the entire Policy, including all terms, conditions, warranties, exclusions, Sums Insured, excesses, deductibles, limits, Schedules, endorsements, amendments and any other written contractual provisions that form part of the Policy. PREMISES The property as specified in the schedule for which the Receiver, Manager or Trustee is responsible whilst the property is subject of a court order or appointment. PROPERTY INSURED Save where expressly provided otherwise, the Buildings, Landlord s Fixtures and Fittings and Contents at the Premises, all as defined in these General Definitions, if and to the extent they are included as Property Insured in the Schedule PROPOSAL Any proposal and/or declaration and any information in addition to or in substitution of such proposal or declaration supplied to the Underwriters by or on behalf of the Assured. SCHEDULE The Schedule specifying the terms and extent of this Policy SUM INSURED/LIMIT OF INDEMNITY The sum or limit specified in the Schedule as applying to the relevant Section of this Policy or items insured. TERRITORIAL LIMITS Great Britain, Northern Ireland, the Isle of Man or the Channel Islands. TERRORISM An act of any person or groups of persons acting on behalf of, or in the name of, or in support of, or in connection with any organisation, association or affiliation of persons which carries out activities directed towards the overthrowing or influencing by force, destruction or violence or by the threat of force, destruction or violence, any government or political institution. UNDERWRITERS Great Lakes Reinsurance (UK) PLC. UNLAWFUL ASSOCIATION Any organisation which is engaged in terrorism and includes an organisation which at any relevant time is a proscribed organisation within the meaning of the Terrorism Act 2000 or any similar legislation. THE COVERHOLDERS JLT Corporate Risks Ltd trading under the name Jardine Lloyd Thompson Corporate Recovery Risks 4

5 SECTION A - MATERIAL LOSS OR DAMAGE COVER Damage to the Premises by any of the following Perils during the Period of Insurance:- 1. Fire, lightning, explosion or earthquake 2. Aircraft or other aerial devices or articles dropped from them 3. Storm or flood excluding Damage: a. caused by frost b. solely due to change in the water table level c. caused by wet or dry rot, rust, corrosion or other wear and tear 4. Escape of water from water pipes, water mains, water tanks or water apparatus or escape of oil from any fixed heating installation excluding Damage: a. whilst the water pipes, mains, tanks, apparatus or heating installations are being worked upon b. as a result of wet or dry rot, rust, corrosion or other wear and tear c. caused by subsidence, ground heave or landslip 5. Impact by any road vehicle or animal 6. Riot, civil commotion, strikers, persons taking part in labour disturbances or malicious persons or vandalism excluding Damage: a. arising directly from nationalisation, confiscation, destruction, seizure or requisition by order of the Government or any Public Authority b. resulting from cessation of work 7. Falling trees or branches but excluding Damage: a. caused by cutting down or trimming trees or branches b. to fences and gates 8. Breakage or collapse of radio or television aerials, fixed satellite dishes, their fittings and masts but excluding Damage whilst such apparatus are being worked upon 9. Theft or attempted theft excluding Damage caused by theft or attempted theft not involving entry or exit from the Premises by forcible and violent means 10. Subsidence Lanslip or Heave 11. Sprinkler Leakage 12 Any other Accidental Damage not otherwise excluded above and excluding confiscation, destruction, seizure or requisition by order of the Government or any Public Authority and excluding gradually operating causes. SECTION A DEFINITIONS BUILDING(S) The building(s) situate at the address(es) specified in the Schedule which include: a. Landlord s Fixtures and Fittings b. annexes, gangways, outbuildings and extensions; c. walls, gates and fences, d. yards, car parks, roads and pavements all belonging to the Assured or for which the Assured is legally responsible. The term Landlord s Fixtures and Fittings means those fixtures and fittings which form a permanent part of the structure including: i. additional structural fixtures and fittings which were not part of the original structure; ii. central heating sytems; iii. sanitary fittings. DECLARED VALUE The Assureds assessment of the cost of Reinstatement of the Property Insured arrived at in accordance with paragraph a. of the Reinstatement Extension at the level of Costs applying at the inception of the Period of Insurance (ignoring inflationary factors which may operate subsequently) including in so far as the insurance by the item provides, due allowance for: i. the additional cost of Reinstatement to comply with local authority requirements, ii. professional fees, iii. removal of debris costs. LANDLORDS CONTENTS Contents of common parts, furniture, furnishings, fitted carpets, domestic appliances and fixtures and fittings all belonging to the Assured or for which the Assured is responsible whilst contained in the Buildings insured by this section excluding:- a. Landlord s Fixtures and Fittings; b. Stock and materials in trade; c. Property more specifically insured. 5

6 REINSTATEMENT a. where property is destroyed the rebuilding of the property if a building or in the case of other property its replacement by similar property in either case in a condition equal to but not better or more extensive than its condition when new. b. where property is Damaged the repair of the Damage or the restoration of the Damaged portion of the property to a condition substantially the same but not better or more extensive than its condition when new. UNOCCUPIED BUILDINGS A building or range of buildings is deemed unoccupied in any of the following circumstances: A) When vacant B) When unattended ) Whether or not any property remains on site C) When disused ) D) When the business of the tenant(s) or former occupant(s) has ceased to trade during normal working hours. If the premises are unoccupied at the time of your appointment the 30 day periods referred to below will start from the date of your appointment NB. If during the initial period immediately following your appointment, there is regular daily attendance by yourselves and/or senior officials of the business (eg. for the purposes of checking its accounts and identifying its assets) Insurers may at their option extend the period for the implementation of the Code of Practice. If this extension is required you must contact Jardine Lloyd Thompson and request an extension. SECTION A - STANDARD CLAUSES AVERAGE If, at the time of any Damage to property, the Sum Insured by the relevant item is less than the full value of the Property Insured by that item, the amount payable by the Underwriters will be proportionately reduced. ARCHITECTS, SURVEYORS AND CONSULTANTS FEES The Sum Insured by each item of the Schedule for Buildings or Landlords Contents includes an amount in respect of architects', surveyors, consulting engineers' and legal fees necessarily and reasonably incurred in the Reinstatement or repair of the property consequent upon its Damage but not for preparing any claim. The total amount payable under this Extension for any item will not exceed its Sum Insured. DESIGNATION OF PROPERTY For the purpose of determining where necessary the item under which property is insured, the Underwriters agree to accept the designation under which such property has been entered in the Assureds books. EUROPEAN UNION AND PUBLIC AUTHORITIES The insurance by each item on Buildings or Landlords Contents includes the additional cost of reinstating any Damage to the Property Insured incurred solely by reason of the necessity to comply with the Stipulations of European Union Legislation or building or other regulations under, or framed in pursuance of, any act of parliament or with bye-laws of any public authority (hereafter referred to as the Stipulations ), excluding: a. the cost incurred in respect of Damage occurring with any of the aforesaid Stipulations; 1. In respect of Damage occurring prior to the granting of this Extension. 2. In respect of Damage not insured by this section. 3. Under which notice has been served upon the Assured prior to the happening of the Damage. 4. In respect of property entirely undamaged by any Defined Peril hereby insured against. b. the additional cost that would have been required to make good the Damage to a condition equal to its condition when new had the necessity to comply with the Stipulations not arisen. c. the amount of any charge or assessment arising out of capital appreciation which may be payable in respect of the property by the owner of it by reason of compliance with the Stipulations. Conditions applicable 1. The work of Reinstatement must be commenced without unreasonable delay and in any case must be completed within twelve months after the Damage or within such further time as the Underwriters may allow(during the said twelve months) and may be carried out upon another site (if the Stipulations so necessitate), subject to the liability of the Underwriters under this Extension not being increased. 2. If the liability of the Underwriters under any item of this section apart from this Extension will be reduced by the application of any of the terms and conditions of the Policy, then the liability of the Assured under this Extension for any such item will be similarly reduced. 3. The total amount recoverable under any item of this section in respect of this Extension shall not exceed: 6

7 a. In respect of the Damaged property, i. 15% of its Sum Insured. ii. Where the Sum Insured by the item applies to property at more than one Premises 15% of the total amount for which the Underwriters would have been liable had the Property Insured by the item at the Premises where the Damage has occurred been wholly destroyed. b. In respect of undamaged portions of the property (other than foundations) 15% of the total amount for which the Underwriters would have been liable had the Property Insured by the item at the Premises where the Damage has occurred been wholly destroyed. 4. The total amount payable under this Extension and the section for any item will not exceed its Sum Insured. 5. All the terms and conditions of this section, except in so far as they may be expressly varied by this Extension, will apply as if they had been incorporated. NO REDUCTION IN SUM INSURED In the event of a claim, and in the absence of written notice by the Underwriters or the Assured to the contrary, the relevant Sum Insured will be maintained provided that the Assured agrees to pay any additional premium. REINSTATEMENT In the event of any Buildings or Landlords Contents insured by this section sustaining Damage the basis upon which the amount payable under such items is to be calculated will be the cost of Reinstatement subject to the provisions set out below. Provisions 1. No payment beyond the amount which would have been payable had this Extension not been operative will be made: a. unless the work of Reinstatement is commenced and carried out with reasonable despatch, b. until the cost of Reinstatement has been incurred, c. unless any other insurance covering the Assureds interest in the property at the same time of Damage is upon the same basis of Reinstatement as this Policy, and if no such payment is made then the rights and liabilities of the Underwriters and the Assured will be those which would have applied had this Extension not been operative. 2. Reinstatement may be carried out at another site and in any manner suitable to the Assured subject to the liability of the Assured not being increased as a result. 3. In the event of partial Damage to any Property Insured under this extension the Underwriters liability for any loss will not exceed the cost which would have been incurred had such property been totally destroyed. 4. Each item insured under this Extension is declared to be separately subject to the following Average Condition: If the Sum Insured on any item at the time of Damage is less than 85% of the cost of reinstating the whole Property Insured by such item at the time of Reinstatement then the Assured will be considered as being their own insurer for the difference between the Sum Insured and the cost of Reinstatement of the whole of the property and will bear a rateable proportion of the loss accordingly. REINSTATEMENT (DAY ONE NON ADJUSTABLE BASIS) This Extension applies to each item stated in the Schedule as being on a Day 1 Basis. a. The Assured having stated in writing the Declared Value (shown in the Schedule for each item to which this Endorsement applies) the premium has been calculated accordingly. b. At the inception of each Period of Insurance the Assured will notify the Underwriters of each Declared Value of the Property Insured by each of the said items and in the absence of such declaration the last amount declared by the Assured will be taken as the Declared Value for the ensuing Period of Insurance. c. Where because of Provision 1 of the Reinstatement Extension no payment is to be made beyond the amount which would have been payable had the Extension not been operative the Sum Insured will be limited to the Declared Value(s) shown in the Schedule. d. In respect of each item to which this Extension applies: Provision 4 of the Reinstatement Extension is amended to read: Each item insured under this Extension is declared to be separately subject to the following Average Condition. If at the time of Damage the Declared Value of the Property Insured by any item is less than the cost of Reinstatement at the inception of the Period of Insurance, then the Assureds liability in respect of such Damage will be limited to the proportion that the Declared Value bears to the cost of Reinstatement. 7

8 REMOVAL OF DEBRIS The insurance by this section extends to include Costs and expenses incurred by the Assured with the consent of the Assured in: a. removing debris, b. dismantling and/or demolishing, c. shoring up or propping, of the portion(s) of the property, which is the subject of a claim under this section. The total amount payable under this Extension and the section for any item will not exceed its Sum Insured. The Underwriters will not pay for any Costs or expenses: i. incurred in removing debris except from the site of any property which is the subject of a claim under this section and the area immediately adjacent to such site. ii. arising from Pollution or Contamination of property not insured by this section. SUBROGATION WAIVER In the event of a claim arising under this section the Underwriters agree to waive any rights, remedies or relief to which they might become entitled by subrogation against: a. any company standing in the relation of parent to subsidiary or subsidiary to parent to the Assured as defined in Section 736 and 736A of the Companies Act 1985 (as from time to time amended) or equivalent. b. any company which is a subsidiary of a parent company of which the Assured are themselves a subsidiary in each case within the meaning of Section 736 and 736A of the Companies Act 1985 (as from time to time amended) or equivalent c. any tenant of the Buildings insured by this section unless the Damage: 1. has been occasioned or contributed to by the fraudulent or criminal or malicious act of such tenant. 2. has been caused by impact by any road vehicle belonging to or under the control of the tenant or his Employees. 3. has occurred to parts of the Premises not leased or rented by such tenant (other than common parts which may be used by all tenants). d. Any company or firm of which the court appointed Receiver is employed by or a partner thereof and/or any individual employee thereof. TRANSFER OF INTEREST If at the time of destruction or Damage to any building hereby insured, the Assured shall have contracted to sell his interest in such building and the purchase shall not have been but shall be thereafter completed, the purchaser on the completion of the purchase if and so far as the property is not otherwise insured by or on behalf of the purchaser against such destruction or Damage, shall be entitled to the benefit of this Policy so far as it relates to such destruction or Damage, subject to all its terms and without prejudice to the rights and liabilities of the Assured or the Underwriters under this Material Loss or Damage Section up to the date of completion. NON-INVALIDATION CLAUSE The Insurance of this Section shall not be invalidated by any act, omission or alteration whereby the risk of destruction or damage is increased unknown to or beyond the control of the Assured provided that, immediately they become aware thereof they shall give notice to the Underwriters and pay an additional premium if required. 8

9 CONDITIONS APPLICABLE TO SECTION A CODE OF PRACTICE FOR UNOCCUPIED BUILDINGS Jardine Lloyd Thompson must be advised when a building becomes unoccupied. You have under your insurance scheme, cover for unoccupied buildings for the same perils as for occupied buildings provided Insurers have been advised the premises are unoccupied, subject to the following which are minimum levels of Loss Prevention measures required by the Insurers: All requirements must be implemented within 30 days of the premises becoming unoccupied or 30 days from the date of your appointment, whichever is the later. Code of Practice (Loss Prevention Measures). a All water supplies other than for sprinkler installations are to be turned off at the mains and the system entirely drained down.. b c d e f If the water system cannot be turned off and drained down during the period 1st November to 31st March inclusive, the previous heating system should be kept in operation to obtain a temperature of 40oF with frost stats as required, to operate at 40oF. All combustible waste material must be safely removed from the site (both internal and external to the buildings). Arrangements should be made to remove contents of no value that under the Appointment you are legally entitled to remove. If this is not possible for legal or other reasons JLT must be advised immediately and prior to the expiry of 30 days from the premises becoming unoccupied if this cannot be complied with. Unless used to heat the premises and unless such heating is continuing, all gas supplies must be turned off at the mains. Other than electrical supplies required to maintain Fire and/or Theft protection/detection equipment, all electrical supplies are to be turned off at the mains. They may of course be reinstated temporarily for the purposes of periodic checks of the property or other visits to the property. All Fire protection/detection equipment other than portable Fire Extinguisher Appliances, must be maintained in efficient working order, whenever possible. All Security protection/detection equipment must be retained in fully effective mode. Where Security and Detection equipment is subject to a maintenance agreement this should be continued. If the existing contract is not continued we should be advised immediately. In the event of the Assured receiving any notification i. that the police authority attendance or any contractually provided attendance in response to alarm signals and/or calls from any alarm system may be withdrawn or the level of response reduced or delayed; or ii. from a Local Authority or Magistrate imposing any requirement for abatement of nuisance in respect of any alarm system; or iii. that any alarm system cannot be returned to or maintained in full working order; then with immediate effect iv. it shall be a condition precedent to liability under this Policy that the Assured shall notify the Underwriter as soon as possible, at which time the Underwriter shall reserve the right to vary terms or cancel cover provided under this Policy; v. the Assured shall be responsible for the first 20% of any loss, destruction or Damage by theft or attempted theft subject to a minimum contribution of 2500; vi. it shall be a condition precedent to liability under this Policy that the Assured shall comply with any requirements that the Underwriters impose in response to such notice. g All premises must be made secure against unauthorised entry. The minimum requirements are that all ground floor and other accessible doors and windows are securely locked and letterboxes are sealed. Insurers may require additional security devices. All keys should be accounted for and if necessary locks 9

10 h should be replaced. The premises must be made secure as soon as reasonable possible, and all keys accounted for as soon as reasonably possible from the date of appointment. Any sprinkler installation should be kept in operation and weekly tests carried out. During the period 1st November to 31st March inclusive, the building should be heated to maintain a temperature of at least 40oF by an adequately maintained heating system or the system adapted to an air system. If these conditions cannot be complied with, the sprinkler installation should be turned off at the mains and drained down in accordance with (1) above. In addition JLT Corporate Recovery Risks must be advised. This will result in a substantial increase in the premium and may restrict the cover that can be provided. PROTECTIONS a. It is a condition precedent to liability under this Policy that all protections provided for the safety of the Premises and operative at inception shall be maintained in good order and shall not be withdrawn, altered or varied without the prior consent of the Underwriters and shall be in full and effective operation when the Premises are closed for Business or left unattended, and at all other appropriate times. b. It is a condition precedent to liability under this Policy that any alarm and/or system forming part of the protections and operative at inception shall be maintained in full and efficient working order under a contract to provide both corrective and preventive maintenance with the installing company or in accordance with the manufacturer s recommendations. c. In the event of the Assured receiving any notification i. that the police authority attendance or any contractually provided attendance in response to alarm signals and/or calls from any alarm system may be withdrawn or the level of response reduced or delayed; or ii. from a Local Authority or Magistrate imposing any requirement for abatement of nuisance in respect of any alarm system; or iii. that any alarm system cannot be returned to or maintained in full working order; then with immediate effect iv. it shall be a condition precedent to liability under this Policy that the Assured shall notify the Underwriter as soon as possible, at which time the Underwriter shall reserve the right to vary terms or cancel cover provided under this Policy; v. the Assured shall be responsible for the first 20% of any loss, destruction or Damage by theft or attempted theft subject to a minimum contribution of 2500; vi. it shall be a condition precedent to liability under this Policy that the Assured shall comply with any requirements that the Underwriters impose in response to such notice. 10

11 SECTION A - SPECIAL CLAUSES (Applicable only if the letter set against it appears on the Schedule) A. LOCAL AUTHORITIES UNDAMAGED PROPERTIES EXTENSION Notwithstanding paragraph a. i) d) of the Local Authorities Clause (See Standard Clauses in this Section) the Insurance by each item of the Schedule on Buildings extends to include the additional cost of Reinstatement as described in the said clause in respect of undamaged portions of property provided that 1. the Underwriters shall not be liable for such additional cost in respect of any Building which has not sustained Damage by a Defined Peril, 2. the amount recoverable shall not exceed: i. in respect of undamaged portions of property other than foundations 15% of the total amount for which the Underwriters would have been liable had the Building been totally destroyed, ii. in respect of any item of this Material Loss or Damage Section the Sum Insured thereby; 3. all the conditions of the Local Authorities Clause including any condition of average shall apply except insofar as they are hereby expressly varied. B. FIRST LOSS AVERAGE CLAUSE When the Sum Insured is shown FIRST LOSS in the Schedule - The applicable item of this Section is subject to the condition of average (First Loss), that is to say, if the total value of all property covered by the item shall at the time of any loss be greater than the value notified by the Assured, then the Assured shall be entitled to recover hereunder only such proportion of the said loss as the said notified value bears to the total value, up to but not exceeding the Sum Insured for the item. C. OBSOLETE BUILDING CLAUSE The basis of valuation for the purpose of average shall be: - 1. the cost of purchasing a similar building to the insured building plus an allowance for removal of debris costs, or 2. the cost of erecting a modern building providing comparable facilities to the insured building plus an allowance for professional fees, removal of debris costs and the additional expenditure which might arise out of local authorities requirements. D LOSS OF RENT This Section is extended to include loss of Rent should damage by any operative Insured Peril render the buildings of the premises uninhabitable but only in respect of and not exceeding 10% of the sum insured on the buildings for a maximum term of 12 months or the sum insured and term stated in Section A of the Schedule whichever be the greater In no case shall the amount payable exceed such proportion of the said percentage of the sum insured on the buildings or the sum insured stated in Section A of the Schedule as the period necessary for reinstatement bears to the term of Rent insured 11

12 SECTION A - EXCLUSIONS This Section (including all Extensions) does not cover: property which at the time of the happening of Damage is insured by, or would, but for the existence of this Policy be insured by any marine policy or policies, except in respect of any excess beyond the amount which would have been payable under the marine policy or policies had this Policy not been effected. 2. any property more specifically insured by or on behalf of the Assured. 3. consequential loss of any kind 4. the amount of the Excess specified in the Schedule. Such amount will be deducted from each claim for Damage at each separate location after all other terms of the Policy have been applied, including any Condition of Average. 5. Damage caused by: a. Theft or attempted theft: i. by any person lawfully on the Premises ii. with the collusion of the Assured, any member of the Assureds family or any director, partner or Employee of the Assured b. wind, rain, hail, sleet, snow, flood or dust to fences, gates, hoardings or to any movable property left in the open or in any building which does not have permanent foundations c. normal settlement or bedding down of new structures 9. Damage to a building or structure caused by its own collapse or cracking unless resulting from a Defined Peril insofar as it is not otherwise excluded 10. Damage caused by Pollution or Contamination except (unless otherwise excluded) Damage to Property Insured caused by: a. Pollution or Contamination which itself results from a Defined Peril b. a Defined Peril which itself results from Pollution or Contamination 12. Damage to property: a. by fire resulting from its undergoing any process involving the application of heat b. (other than by fire) resulting from its undergoing any process of cleaning, restoration, renovation, testing, servicing or repair 13. Damage: a. caused by freezing, b. caused by escape of water from any tank, apparatus or pipe or escape of oil from any fixed domestic heating installation, 14. Damage caused by: a. inherent vice, latent defect, gradual deterioration, wear and tear, frost or change in water table level, b. faulty or defective design, materials or workmanship, c. the bursting of a boiler (not being a boiler being used for domestic purposes only), economiser, or other vessel, machine or apparatus in which internal pressure is due to steam only and belonging to or under the control of the Assured, but this will not exclude subsequent Damage which itself results from a cause not otherwise excluded 15. Damage caused by: a. variations in humidity or temperature, corrosion, rust, marring, scratching, vermin, insects, wet or dry rot, deformation or distortion, shrinkage, evaporation, loss of weight, change in flavour, colour, texture or finish or action of light, b. nipple or joint leakage, failure of welds, cracking, fracturing, collapse or overheating of boilers, economisers, superheaters, pressure vessels or any range of steam and feed piping in connection therewith, c. mechanical or electrical breakdown or derangement in respect of the particular machine apparatus or equipment in which such breakdown or derangement originates, but this will not exclude: i. such Damage not otherwise excluded which itself results from a Defined Peril or from any other accidental loss, destruction or Damage ii. subsequent Damage which itself results from a cause not otherwise excluded 17. Damage the cause of which cannot be explained 18. Damage caused by disturbance or failure of the power of fuel supply except where such disturbance or failure results directly from Damage to the electrical or fuel installation at the Premises by a Defined Peril insofar as it is not otherwise excluded 12

13 SECTION A - WARRANTIES If the letter set against them appears on the Schedule the following warranties will apply from the date of commencement of this Policy and throughout the Period of Insurance a. Portable Heater Warranty It is a condition precedent to liability that there will be no use or storage on the Premises of paraffin or portable electric or gas heaters or containers unless specifically agreed by the Underwriters prior to such use or storage. b. Electrical Circuit Maintenance Warranty It is a condition precedent to liability that a current and valid electrical certificate is issued for the Premises and that electrical installation will be inspected and tested once every three years by a contractor approved by the National Inspection Council for Electrical Installation Contractors (NICEIC) and that defects found will be remedied forthwith in accordance with regulations of the institute of electrical engineers. c. No Smoking Warranty It is a condition precedent to liability that smoking will not be permitted on the Premises at any time and signs to this effect will be prominently displayed. d. Composite Panel Warranty It is a condition precedent to liability that in respect of any building containing composite panels that: 1. suitable fire extinguisher appliances to be supplied in all cooking areas 2. ducting, conduit wiring and hot flues be adequately protected within fire resistant sleeves where passing through composite panels 3. at least weekly inspections to be undertaken by the Assured to check for Damage to composite panels or panel joints. Any defects found to be rectified without delay or replaced by a panel with a noncombustible core within 7 days 4. no repairs to be made to composite panels that involve welding, grinding, cutting or other obvious ignition sources 5. all heat sources to be kept at least 2 metres from any composite paneling or such paneling to be of a non-combustible core 6. no external storage of combustible stock, packaging pallets, waste or waste skips or bins within 10 metres of the Buildings 7. any work involving the application of heat must only be carried out by a qualified Contractor and the Assured is to ensure the Contractor has adequate Public Liability Insurance in force and shall confirm same through sight of certificate of insurance. Subrogation rights against such Contractor shall not be waived by the Assured. The following warranties apply: i. the area in which work is to be carried out shall be adequately cleared and combustible materials shall be removed to a distance not less than 6 metres from the area of proposed work ii. if work is to be carried out overhead then the area beneath shall be similarly cleared and all iii. combustible materials removed suitable fire extinguisher with a capacity of not less than 9 litres shall be kept available for immediate use iv. blow lamps and blow torches shall be lit in as short a time as possible before use and extinguished immediately after use v. lighted blow lamps and torches shall not be left unattended vi. half an hour after each period of work a thorough examination shall be made of and in the area in which works has been undertaken vii. if work is to be carried out in the vicinity of composite/sandwich panels then such panels must be protected by non-combustible blankets, drapes or screens. e. Storm Exclusion The Underwriters will not be liable for Damage caused by storm. 13

14 SECTION B - PROPERTY OWNERS LIABILITY COVER AND AMOUNT PAYABLE The Underwriters will indemnify the Assured against all sums which the Assured becomes legally liable to pay as Damages for: a. accidental Injury to any person other than an Employee where such Injury arises out of and in the course of the employment b. Wrongful arrest, detention or false imprisonment c. Damage to Property d. accidental obstruction, accidental trespass, accidental nuisance, accidental interference with pedestrian, road, rail, air or waterborne traffic, accidental invasion of the right of privacy or accidental interference with any right of air, light, water or way occurring in connection with the Business, within the Territorial Limits, during the Period of Insurance. The total liability of the Underwriters under this section (including any cover extensions) for all claims arising out of one occurrence or number of occurrences arising directly or indirectly from one source, original cause or incident will not exceed the Limit of Indemnity stated in the Schedule. In addition Underwriters will pay Costs. SECTION B DEFINITIONS (Unless restated hereunder Definitions are deemed to be as stated in the General Definitions of the Policy) BUSINESS shall mean the description shown in the Definitions including: a. the provision and management of canteen, sports and social, educational, training and welfare organisations for the benefit of Employees and first aid, fire, security and ambulance services; b. maintenance, decoration, minor alteration or repair of Premises owned or occupied by the Assured in connection with the Business; c. repair or maintenance of vehicles or plant owned or used by the Assured; d. participation in trade shows or exhibitions; e. private work undertaken with the consent of the Assured by Employees for the Assured or any director or Employee of the Assured. COSTS 1. Legal Costs and expenses: a. recoverable form the Assured by any claimant which have been incurred before the Underwriters have paid or offered to pay the full amount of the claim, or the Limit of Indemnity started in the Schedule. b. incurred with the written consent of the Underwriters for representation at: i. any coroner s inquest or fatal accident enquiry; ii. proceedings in any Court of Summary Jurisdiction arising out of any alleged breach of statutory duty. 2. Other Costs and expenses incurred by the Assured with the written consent of the Underwriters. EMPLOYEE a. any person under a contract of service or apprenticeship with the Assured b. any labour master or labour only sub-contractor or person supplied by any of them c. any self-employed person providing labour only d. any person under a contract of service or apprenticeship with another employer and who is hired to or borrowed by the Assured e. any person participating in any Government or otherwise authorised work experience or similar scheme, in all cases whilst working for the Assured in connection with the Business INJURY Bodily Injury, death, illness, disease or nervous shock. POLLUTION OR CONTAMINATION 1. all pollution and contamination of buildings or other structures or of water or land or the atmosphere; and 2. all loss or Damage or Injury directly or indirectly caused by such pollution or contamination. PRODUCTS Goods (including containers, packaging, labels or instructions for use) manufactured, sold, supplied, repaired, altered, installed, erected, processed, tested, cleaned or treated by the Assured. PROPERTY Material property 14

15 SUBSIDIARY COMPANY A Subsidiary Company as defined in Section 736 and 736A of the Companies Act 1985 (as from time to time amended) TERRITORIAL LIMITS 1. Great Britain, Northern Ireland, the Isle of Man or the Channel Islands; 2. elsewhere in the world for commercial visits undertaken by the Assured or any director or Employee of the Assured normally resident in 1 above, not involving the supervision or performance of manual work SECTION B - EXTENSIONS CONSUMER PROTECTION ACT 1987 AND FOD SAFETY ACT 1990 LEGAL DEFENCE COSTS The Underwriters will indemnify the Assured or at the request of the Assured any director or Employee of the Assured against legal costs and expenses incurred in the defence of any criminal proceedings brought for a breach of Part II of the Consumer Protection Act 1987 or Food Safety Act 1990 or any regulations made thereunder committed or alleged to have been committed during the Period of Insurance including legal costs and expenses incurred with the consent of the Underwriters in an appeal against conviction arising from such proceedings Provided always that: 1. The criminal proceedings relate to an offence committed in the course of the Business 2. This extension shall apply only to proceedings brought in Great Britain, Northern Ireland, the Isle of Man or the Channel Islands 3. The Underwriters shall not be liable under this Extension: i) where the Assured or any director, partner or Employee of the Assured is insured by any other Policy of Insurance ii) where the criminal proceedings are in respect of any deliberate or intentional criminal act or omission of the Assured or any director, partner or Employee of the Assured iii) in respect of legal costs and expenses which the Assured or any director partner or Employee of the Assured may be ordered to pay by a Court of Criminal Jurisdiction in respect of the deliberate or intentional criminal act or omission of the Assured or any director partner or Employee of the Assured iv) in respect of fines or Damages v) for the cost of any investigation or inquiry other than a solicitor s investigation restricted to criminal proceedings as above defined vi) unless the Underwriters have the sole conduct and control of all claims 4. The Assured, director or Employee shall give to the Underwriters immediate notice of any summons or other process served upon the Assured, director or Employee and of any event that may give rise to proceedings against the Assured, director or Employee CONTRACTUAL LIABILITY AND INDEMNITY TO PRINCIPAL The Underwriters will subject otherwise to the terms of this Policy indemnify the Assured under Sub-Sections 1 and 2 against liability in respect of Bodily Injury or loss of or Damage to Property as follows:- To the extent that any contract or agreement entered into by the Assured with any principal so requires the Underwriters will a. indemnify the Assured against liability assumed by the Assured b. indemnify the principal in like manner to the Assured in respect of the liability of the principal arising out of the performance by the Assured of such contract or agreement, provided that i) the conduct and control of claims is vested in the Underwriters ii) the principal shall observe fulfil and be subject to the terms of this Policy so far as they can apply iii) the indemnity shall not apply to liability in respect of liquidated damages or under any penalty clause iv) the indemnity granted under Sub-Section 1 shall only apply in respect of liability to any person who is an Employee of the Assured Where any indemnity is provided to any principal the Underwriters will treat each principal and the Assured as though a separate insurance had been issued to each of them provided that nothing in this clause shall increase the liability of the Underwriters to pay any amount in respect of any one claim or during any one Period of Insurance in excess of the amount stated in the Limits of Indemnity. CONTINGENT LIABILITY (NON OWNED VEHICLES) Indemnity will be provided in respect of legal liability for bodily Injury and loss of or Damage to property arising out of the use of any motor vehicle which is not the property of the Assured or leased or hired to the Assured, being used in connection with the Business. The indemnity does not apply in respect of a. loss of or Damage to such vehicle b. Injury or Damage to property while such vehicle is being driven by the Assured c. Liability arising from circumstances in which it is compulsory for the Assured to insure or provide security in respect of such vehicle as a requirement of the relevant Road Traffic Act legislation or 15

16 d. A vehicle being used outside the United Kingdom COURT ATTENDANCE COSTS If at the request of the Underwriters any of the undermentioned persons attend court as a witness in connection with a claim for which the Assured is entitled to indemnity under this section, the Underwriters will provide compensation to the Assured at the undernoted daily rates for each day on which attendance is required: a. the Assured or any director of the Assured 150 b. any Employee 100 CROSS LIABILITIES If more than one party is named in the Schedule as the Assured, this section applies separately to each provided that the total liability of the Underwriters will not exceed the Limit of Indemnity stated in the Schedule. DATA PROTECTION ACT The Underwriters will indemnify the Assured against legal liability to pay compensation for Damage or distress arising out of any claim under Sections 22 and 23 of Data Protection Act 1984, provided that: a. the process of registration under the above Act has been commenced or completed by the Assured and the application has not been refused or withdrawn; b. no liability arises as a result of the provision by the Assured of the services of a computer bureau. The Underwriters will not indemnify the Assured for: i. the recording or provision of data for reward or for determining the financial status of any person; ii. any liability which arises as a result of a deliberate act or omission of the Assured; iii. legal fees and expenses insured by any other Policy; iv. the costs of replacing, rectifying or erasing any personal data; v. the first 10% or 500 of each and every claim whichever ids the greater. The total liability of the Underwriters during any one Period of Insurance will not exceed 100,000. DEFECTIVE PREMISES ACT 1972 The Underwriters will indemnify the Assured against liability at law incurred by the Assured under Section 3 of the Defective Premises Act 1972 or Section 5 of the Defective Premises (Northern Ireland) Order 1975 in connection with Premises which have been disposed of by the Assured. Provided always that the Underwriters shall not be liable under this Extension for the cost of remedying any defect or alleged defect in the said premises in respect of liability more specifically insured under any other insurance. HEALTH & SAFETY AT WORK With the Underwriters written consent, cover will extend to include legal fees and expenses incurred by the Assured (or, at the Assureds request, by any director or Employee) in defending any prosecution or appealing any judgement given, under the Health and Safety at Work etc Act 1974, or the Health and Safety (Northern Ireland) Order 1978, provided that: a. the offence relates to an activity involving the health, safety or welfare of any person other than an Employee and was committed in connection with the Business during the Period of Insurance; b. indemnity does not apply to any deliberate act of omission. INDEMNITY TO OTHER PERSONS The Underwriters will indemnify in the terms of this section: a. if the Assured so requests: i. any director or Employee for liability for which the Assured would have been entitled to indemnity if the claim had been made against him; ii. any officer or member of the Assureds canteen, sports and social, educational, training or welfare organisations and first aid, fire, security and ambulance services; b. any principal to the extent that the contract between the Assured and such principal so requires for liability arising from the performance of work on behalf of such principal. c. The legal personal representatives of any person entitle to indemnity under this section for liability incurred by that person. If the Underwriters are liable to indemnify more than one party the total amount of indemnity to all such parties, including the Assured, will not exceed the Limit of Indemnity stated in the Schedule. LEASED OR RENTED PREMISES Despite exclusion 11 this section indemnifies the Assured for liability for loss or Damage to any building (including fixtures and fittings) leased, let, rented, hired or lent to the Assured. Provided that the Underwriters will not indemnify the Assured for: a. the first 100 of each and every claim caused other than by fire or explosion; b. liability arising solely because of a contract. 16

17 LIBEL AND SLANDER The Underwriters will indemnify the Assured in respect of legal liability to pay compensation and claimants Costs and expenses in respect of claims made against the Assured during the Period of Insurance arising from any act of libel or slander committed or uttered in good faith by the Assured during the Period of Insurance in the course of the Business. Provided always that: a. the indemnity granted by this Extension shall apply solely to the Assureds in-house and trade publications b. the liability of the Underwriters under this Extension shall not exceed 250,000 in any one Period of Insurance. OVERSEAS PERSONAL LIABILITY The Underwriters will indemnify the Assured and at the request of the Assured any Employee or spouse for legal liability incurred in a personal capacity whilst temporarily outside the Territorial Limits. The Underwriters will not indemnify the Assured for: a. legal liability arising directly or indirectly from, i. ownership or occupation of land or buildings; ii. the carrying on of any Business profession or trade; iii. any agreement or contract unless liability would otherwise have existed. b. liability more specifically insured. SUBROGATION WAIVER In the event of a claim arising under this section the Underwriters agree to waive any rights, remedies or relief to which they might become entitled by subrogation against: d. any company standing in the relation of parent to subsidiary or subsidiary to parent to the Assured as defined in Section 736 and 736A of the Companies Act 1985 (as from time to time amended) or equivalent. e. any company which is a subsidiary of a parent company of which the Assured are themselves a subsidiary in each case within the meaning of Section 736 and 736A of the Companies Act 1985 (as from time to time amended) or equivalent f. any tenant of the Buildings insured by this section unless the Damage: 4. has been occasioned or contributed to by the fraudulent or criminal or malicious act of such tenant. 5. has been caused by impact by any road vehicle belonging to or under the control of the tenant or his Employees. 6. has occurred to parts of the Premises not leased or rented by such tenant (other than common parts which may be used by all tenants). d. Any company or firm of which the court appointed Receiver is employed by or a partner thereof and/or any individual employee thereof. NON-INVALIDATION CLAUSE The Insurance of this Section shall not be invalidated by any act, omission or alteration whereby the risk of destruction or damage is increased unknown to or beyond the control of the Assured provided that, immediately they become aware thereof they shall give notice to the Underwriters and pay an additional premium if required. 17