Willis Insolvency Scheme. HSB Master Schedule Engineering Policies Version 3.3

Transcription

1 Willis Insolvency Scheme HSB Master Schedule Engineering Policies Version 3.3 This Master Schedule is issued under the terms and conditions of the Binding Authority Agreement granted to Willis Limited ( Willis ) by HSB Engineering Insurance Limited ( HSB ) in respect of HSB insurance policies ( Policy or Policies ) under the Willis Insolvency Scheme ( the Scheme ). Criteria for acceptance of insurance placements under the Scheme shall be provided in the Operating Manual for the Willis Insolvency Open Cover Scheme for Insolvency Practitioners (as issued or amended from time to time) ( the Scheme Manual ) in respect of Insolvency Practitioner Appointments as defined below. Insolvency Practitioner Appointment shall mean the appointment of any partner or authorised employee (an Insolvency Practitioner ) in any of the following capacities: the Insolvent Party has become insolvent and/or has a petition presented for its liquidation or administration or the appointment of a provisional liquidator or an order has been made or a resolution passed for its liquidation, administration or dissolution (otherwise than for the purposes of a bona fide solvent amalgamation or reconstruction); or in the event that the Insolvent Party is a partnership (or limited partnership) any of the partners becomes insolvent or a resolution is passed for his or her bankruptcy; or (c) an administrative or other receiver, manager, trustee, liquidator, administrator or similar officer is appointed over all or any substantial part of the Insolvent Party 's assets or notice of intention to appoint an administrator is filed; or (d) the Insolvent Party or, where it is a partnership (or limited liability partnership), any of its partners, enters into or proposes any composition or arrangement with its or his or her creditors generally or the partnership is dissolved or an administration order is made or receiver or other similar officer is appointed (otherwise than for the purposes of a bona fide solvent amalgamation or reconstruction); or (e) in the event that the Insolvent Party is a sole trader or unincorporated person, an interim order is made or petition presented for his or her bankruptcy; or (f) the Insolvent Party is unable to pay its debts within the meaning of Section 123 of the Insolvency Act 1986; or (g) any event which has a similar or analogous effect to the matters set out in to (f) above occurs in any jurisdiction in relation to the Insolvent Party; and where the Insolvency Practitioner requires insurance cover under the Scheme insurance arrangements. Cover is provided under each insurance Policy described below subject to notification of risk information in accordance with the timescales shown in the Scheme Manual. Cover is subject to the limits, terms, conditions or endorsements issued on an individual Risk Schedule issued by Willis in respect of a specific Insolvency Practitioner Appointment. The individual Risk Schedule shall be read in conjunction with the Master Schedule, the Scheme Manual and Policy Wording(s) as one document and the limits, terms, conditions or endorsements on an individual Risk Schedule amend the limits, terms, conditions or endorsements on the Master Schedule where they differ. Premiums, terms and conditions of the Policies provided under the Scheme for specific Insolvency Practitioner Appointments are based on information provided to Willis including the completed questionnaire, declarations or any additional information provided to Willis. Page 1 of 24 Version 3.0 Engineering Master Schedule

2 In accordance with the Appointed Insolvency Practitioner(s) instructions we confirm cover is bound subject to the terms, conditions, limitations and exceptions of the Willis Insolvency Practice HSB Master Schedule (version 3.1) and the policy wordings noted below unless specifically amended below by endorsement under the Master Schedule Endorsements or more specifically amended on an individual Risk Schedule in respect of a specific Insolvency Practitioner appointment Master Policy holder: Insured: Trades/Business Covered: Risk Address (es) Covered: Insolvency Practitioner(s) who have been admitted to the Scheme Appointed Insolvency Practitioner(s) as shown on the individual Risk Schedule As referred to in the individual Risk Schedule and as declared to and accepted by Willis on behalf of HSB As referred to in the individual Risk Schedule and as declared to and accepted by Willis on behalf of HSB Period of Master Schedule of Insurance Or Inspection Contracts: For: (1) All appointments of the Insured within the terms of the Scheme which are made between 01 st November 2013 and 31 st October 2014, both days inclusive (GMT) and in respect of each such appointment for a period of up to but no more than 12 months from the date of appointment (2) All appointments of the Insured in respect of which cover has been confirmed by Willis under the Scheme prior to 01 st November 2013 and where such coverage is required by the Insured to be renewed during the period described in (1) above, subject always to a maximum coverage period on such a renewal of 12 months from the date of renewal Computer HSB Master Policy Number: LBL Policy Wording Computer Insurance Policy Wording Reference STA-COM and STA-PLA Where cover is provided for the specific Insolvency Appointment under the Scheme Computer Policy, the Computer Policy will be shown as insured on the individual Risk Schedule. The above policy wording is subject to the following Master Schedule Endorsement which applies to all Scheme Computer policies unless amended by the individual Risk Schedule. WISCP01 Master Schedule Endorsement Under Policy Wording STA-PLA enclosing the general policy terms and conditions, item 10 Alterations in Risk is restated as follows Page 2 of 24 Version 3.0 Engineering Master Schedule

3 Alterations in Risk 10. The Insurance under this Policy may be avoided if any alterations are made either to the business as stated in the schedule or in the premises or property whereby the risk of loss or damage is increased any loss minimising factors in existence at the commencement of the insurance are reduced discontinued or not maintained unless its continuance be accepted by The Company and the Policy endorsed accordingly The sections How To Notify Us of Claims and Customer Service and Complaints Procedure are replaced with the following wordings How to Notify us of Claims Claims should be notified promptly to Willis Limited at the address shown in the Operating Manual for the Insurance Facility for Insolvency Practitioners (the Manual). Customer Service & Complaints Procedure HSB is committed to the highest standards of customer service and aims to achieve customer satisfaction in all cases. If you have any cause for complaint, therefore, you should let us know immediately. If your complaint relates to your policy, in the first instance please contact Willis Ltd. The Manager Willis Insolvency Services Willis Ltd 40 St Paul s Square Birmingham B3 1FQ Tel Fax If your complaint relates to a claim on your policy, please contact the department dealing with your claim. When you make contact please tell Willis the following information: Your policy and / or claim number, and the type of policy you hold The reason for your complaint Telephone contact is often the most effective way to resolve complaints quickly. If the matter cannot be resolved simply with Willis Limited, you should contact us at the following address:- Group Operations Manager HSB Engineering Insurance Ltd Chancery Place, 50 Brown Street Manchester, M2 2JT Tel Fax Page 3 of 24 Version 3.0 Engineering Master Schedule

4 We shall always acknowledge your complaint within 5 business days and do our best to resolve it within four weeks. If the matter remains unresolved at the end of eight weeks, or you are unhappy with our response, you may, if you are a small business, have recourse to the Financial Ombudsman Service, or other dispute resolution service. Your right to take legal proceedings is not affected by this complaints procedure. Under Policy Wording STA-COM Computer Insurance Specification the following amendments are made SECTION 1 - HARDWARE is restated as follows Section 1 - HARDWARE The Company will indemnify the Insured against loss of or damage to the Hardware described in the Schedule in consequence of an Accident whilst at the Premises specified in the Schedule or to the Portable Computer Equipment anywhere in Europe unless specifically stated otherwise in the Schedule. Subject to the terms Conditions and Exclusions of this Policy The following wording is added to DEFINITIONS APPLYING TO ALL SECTIONS Unoccupied means unoccupied or untenanted for the foreseeable future without any prospect of the Premises being reoccupied or tenanted within 30 consecutive days or temporarily unoccupied for more than 30 consecutive days or where the business has ceased and will not be recommencing Willis/Your Broker means Willis Limited The definition of Computer Equipment within the policy is restated as follows Computer Equipment Computer Equipment shall mean All electronic equipment used for the storage and communication of electronically processed data including peripheral devices interconnecting wiring fixed disks telecommunications equipment computerised telephone systems electronic access equipment Portable Computer Equipment and Electronic Point of Sale Systems Computer Equipment shall not include (i) Computer Equipment controlling manufacturing processes (ii) Computer Equipment manufactured for sale or held as stock for sale (iii) Facsimile or photocopying machines not used for the storage and communication of electronically processed data unless otherwise specified in the Schedule Ancillary equipment solely for use with the Hardware comprising air conditioning equipment generating equipment voltage regulating equipment temperature and humidity recording equipment electronic access equipment heat and smoke detection equipment gas flooding cylinders and pipework and computer room partitioning (c) Data Carrying Materials Page 4 of 24 Version 3.0 Engineering Master Schedule

5 (d) All current and backup computer software and programs held on hard disks or Data Carrying Materials unless specifically described otherwise in the Schedule (e) Lock down plates security enclosures security cables and other similar devices owned by or on deferred purchase leased hired or rented to the Insured or whilst on trial with a view to purchase by the Insured Portable Computer Equipment shall mean Laptops Palmtops and Notebooks Personal Digital Assistants (PDA s) (c) Projectors printers and other peripheral devices which are designed to be carried and used in conjunction with other Portable Computer Equipment (d) Removable satellite navigation systems (e) Digital Cameras ADDITION OF CONDITIONS The following is added to Conditions Applying to Section 1 Unoccupied Premises Condition 5. Cover for Unoccupied freehold and leasehold Buildings and Buildings where normal trading has ceased to be on the same basis is subject to the following Code of Practice being complied with unless otherwise agreed or modified in writing by the Company Within 30 days of the appointment if the Buildings are Unoccupied at the time of appointment Within 30 days of the Buildings becoming Unoccupied Code of Practice 1. All water supplies shall be turned off at the mains and the system entirely drained down OR For the period 1 November to 31 March inclusive the heating system is to be kept in operation This requirement applies whether or not a sale of the Building or disposal of the lease has been negotiated. 2. Any sprinkler system should be kept in operation subject to weekly tests being continued: a) for water filled systems the heating must be kept in operation for the period 1 November to 31 March inclusive b) for combined air and water systems the system should be air filled for the period 1 November to 31 March inclusive 3. All gas supplies should be disconnected unless used to heat the Building 4. All electricity supplies should be turned off at the mains unless required to maintain fire and/or theft protection/detection equipment The electricity supply may be reconnected for the duration of visits to the Building Page 5 of 24 Version 3.0 Engineering Master Schedule

6 5. All fire and theft protection/detection equipment shall be maintained in efficient working order and put into effective operation whenever there is no person lawfully in the Building. Existing maintenance contracts on such equipment must be continued 6. All letter boxes should be completely sealed to prevent any insertions 7. Manned guarding or periodic visits by a professional security company must be maintained at those times where stipulated by the Company in writing 8. The Building should be cleared of all combustible waste materials 9. All basement ground floor and other accessible windows and glazing to doors to be securely boarded up and the Building to be inspected internally and externally at least once during every 14 day period by a representative of the Insured unless otherwise agreed by the Company Boarding-up is not required for Buildings which were previously occupied solely as offices or as a hotel private dwelling block of flats individual Flat or motor vehicle showroom Physical Security Condition Where the total value of Hardware exceeds 5,000 at any one location the requirement for the Physical Security Condition must be compiled with.. Where the total value of Hardware exceeds 5,000 but less than 25,000 at any one location and the Physical Security Condition has not been met, additional excesses shall apply as per the the General Exclusion Application of Excess. Where the total value of Hardware exceeds 25,000 at any one location and the Physical Security Condition has not been met no cover applies.. Physical Security Condition 6. The Company shall not be liable for any loss or damage resulting from theft or attempt thereat or malicious damage unless the following Physical Security Condition is complied with at the Premises in which the Hardware is situated. Where this condition is not met upon commencement of computer cover under the Willis Insolvency Insurance Scheme via HSB, it must be completed within 30 days of commencement of computer cover under the Willis Insolvency Insurance Scheme via HSB but will not apply as a condition precedent to liability until 30 days after the Insolvency Practitioner Appointment. Doors 1. Except for openings designated as fire exits by the Fire Authority the final exit door of the Premises must be secured depending on door frame construction with (i) a mortice deadlock which has five or more levers and/or conforms to BS3621: 1980 specification for thief resistant locks and matching boxed striking plate or (ii) a cylinder operated mortice deadlock or deadlocking multi-point locking system or (iii) a good quality close shackle cylinder or minimum four lever operated padlock on matching locking bar all other external doors and all internal doors giving access from an external source to any part of the Premises must be fitted with (i) any of the locking arrangements as specified in above according to the construction of the door frame or (ii) two key operated security bolts for doors one fitted approximately 30 centimetres from the top of the door and the other 30 centimetres from the bottom Page 6 of 24 Version 3.0 Engineering Master Schedule

7 Fire Doors 2. Any door officially designated as a fire exit by the Fire Authority must be secured by means of a suitable lock for use in emergency escape situations and it must not be possible for the lock to be operated by breaking or removing glazing either in the door itself or in a window immediately adjacent to the door Windows 3. All ground floor and basement opening windows and skylights and other opening windows and skylights accessible from roofs decks scaffolding (temporary or permanent) balconies fire escapes canopies down pipes or any other externally protruding feature of the building such as roller shutter encasements or design features must be fitted with key operated window locks or protected by solid steel bars lockable steel gates expanded metal or weld mesh grilles Unattended Premises The Premises must not be left unattended unless all locks bolts and other protective devices are in full operation all keys are removed from the Premises or placed in a locked safe or strong room the keys to which are removed from the Premises (c) all Portable Computer Equipment including but not limited to laptop computers palmtop computers digital cameras and digital projectors insured under this Policy are locked in cupboards drawers or other secure storage the keys for which must be stored in accordance with point above Alarm Condition 7. Where the total value of Hardware exceeds 25,000 at any one location the requirement for the ALARM CONDITION must be compiled with. Alarm Condition the Company shall not be liable for any loss or damage resulting from theft or attempt thereat or malicious damage unless the following conditions are complied with at the Premises in which the Hardware is situated The Alarm System 1. The Premises must be protected by an intruder alarm system installed and maintained by a company which is recognised as an installer of intruder alarms either by the National Security Inspectorate (NSI) or the Security Systems and Alarms Inspection Board (SSAIB) All Insured Property must be within the alarm protected area and the alarm system must: incorporate remote signalling to an alarm receiving centre qualify for police response (c) be designed and configured such that when an intruder enters the Premises an alarm condition will be signalled to the alarm receiving centre (d) incorporate technology which enables the user to (i) detect a failure of any signalling path to the alarm receiving centre and this must be clearly indicated at the users control equipment so that the user is aware of the fault before proceeding to set the system (ii) detect if the alarm has not been set in its entirety and this must be clearly indicated at the users control equipment so that the user is aware that the alarm has not been set properly DEFINITIONS Keyholder The Insured a representative of the Insured or a keyholding company who must be available at all times to receive notifications of alarm faults or alarm activations and who can be in attendance and allow access to the Premises Page 7 of 24 Version 3.0 Engineering Master Schedule

8 CONDITIONS Unattended Premises The Premises must not be left unattended unless the alarm system is tested and checked set in its entirety and where the equipment permits any central station to which the alarm is connected has acknowledged the setting signal In the event of an alarm activation or notification of a failure of signal path to the alarm receiving centre whilst the alarm system is active a Keyholder must attend the Premises as soon as possible Notification of Changes The Insured must inform the Company immediately or not later than the Company s next working day if notification is served to the effect that the level of police response will be downgraded or removed Amendments to CONDITIONS APPLYING TO SECTIONS 2 AND 3 Back Up Records is restated as follows 1. The Insured shall maintain a minimum of 2 generations of Verified back-up computer records taken at intervals no less frequently than 48 hours one copy as a minimum being held off site The Insured must take reasonable precautions to ensure that all backup tapes storage devices or other computer records are used and stored in accordance with the manufacturers recommendations Where this condition is not met upon commencement of computer cover under the Willis Insolvency Insurance Scheme via HSB, it must be completed within 30 days of commencement of computer cover under the Willis Insolvency Insurance Scheme via HSB but will not apply as condition precedent to liability until 30 days after Insolvency Practitioner Appointment. The following condition is added Theft restricted to Forcible and Violent Entry Interruption or loss of or damage to Hardware data programs or software due to theft or attempted theft unless such loss or damage is accompanied by visible signs of forcible and violent entry to or exit from the perimeter protections of the Premises in which the Computer Equipment is situated (or transporting vehicle in the case of Portable Computer Equipment or Computer Equipment covered under the Temporary Removal Extension) The following wording is added to ADDITIONAL COVER - EXTENSIONS OF COVER APPLYING TO ALL SECTIONS 72 hour clause 3. It is agreed that any loss or damage to insured property arising during any period of 72 consecutive hours caused by storm tempest flood or earthquake shall be deemed as a single event and therefore to constitute one occurrence with regard to the Excess provided for herein. For the purpose of the foregoing the commencement of any such 72 hour period shall be decided as the discretion of the Insured it being understood and agreed however that there shall be no overlapping in any two or more such 72 hour periods in the event of damage occurring over a more extended period. First Loss Limit 4. Where The Insured has not yet declared limits of indemnity required The Company shall only be liable up to 750,000 at any one location or in aggregate for each and every loss under Section 1 Hardware up to 50,000 any one accident or series of accidents in respect of Section 2 Reinstatement of Data up to 100,000 any one accident or series of accidents in respect of Section 3 Increased Costs of Working and up to 50,000 (or the Page 8 of 24 Version 3.0 Engineering Master Schedule

9 aggregate limit of Sections 2 and 3 if this limit is lower) any one accident or services of accidents in respect of Section 4 Virus Hacking and Denial Of Service Attack unless otherwise agreed with The Company. Where Willis have received a declared sum insured and the limits of indemnity are in excess of the above stated limits, the Insurer will only be liable up to the limits shown above unless otherwise agreed with The Company. All other terms and conditions remain unaltered General Exclusions Applying to all Sections - the Application of Excess is deleted and replaced as follows: Application Of Excess 2. One Excess specified in the Schedule shall be applied to any one loss across all Sections other than Where the Sums Insured are less than 5,000 a 50 Excess applies to each and every loss under Section 1 Hardware and a 50 Excess applies to each and every loss under Section 2- Reinstatement of Data and Section 3 Increased Cost of Working Where the Sums Insured are greater than 5,000 but less than 25,000 and where the Physical Security Condition has been met.a 250 Excess appies to each and every loss under Section 1 Hardware and 100 Excess applies to each and every loss under to Section 2 Reinstatement of Data and Section 3 Increased Cost of Working (c) Where the Sums Insured are greater than 5,000 but less than 25,000 and where the Physical Security Condition has not been met.a 2500 Excess applies in respect of theft and malicious damage losses under Section 1 Hardware. In respect of all other losses, the excess is 250. for Section 1 Hardware and Section 2 Reinstatement of Data and Section 3 Increased Cost of Working (d) Where the Sums Insured are greater than 25,000 and the Physical Security Condition and Alarm Condition has been met.a 250 Excess for each and every loss applies in under Section 1 Hardware and 100 Excess applies to each and every loss under to Section 2 Reinstatement of Data and Section 3 Increased Cost of Working (e) Where the Sums Insured are greater than 25,000 and Alarm Condition has not been met a 2500 Excess applies in respect of theft and malicious damage losses under Section 1 Hardware. In respect of all other losses, for Section 1 Hardware and Section 2 Reinstatement of Data and Section 3 Increased Cost of Working the excess is 250. however the excess reduces to 1500 in respect of theft and malicious damage losses where an alarm system has been installed by Vacant Property Services Ltd or any other system as agreed to by the Insurer (f) in respect of loss or damage resulting from fire lightning explosion aircraft or articles dropped there from the Excess shall be nil (g) where the only loss sustained by the Insured as a result of theft or attempted theft is loss of or damage to items defined under Computer Equipment Definition (e) the Excess shall be nil (h) In respect of Breakdown, the Excess is 1000 excess with the exception of (i) Desktop Personal Computers (ii) Portable Computer Equipment (iii) Hardware where a Maintenance Agreement warranty or guarantee is in force on the item at the time of the loss or damage Where the standard policy excess applies. (i) if there is no Maintenance Agreement in force in respect of Hardware, cover for Section 3 - Increased Costs of Working will include breakdown but will exclude the first 48 hours Page 9 of 24 Version 3.0 Engineering Master Schedule

10 In the event that the loss under Section 1 does not exceed the Breakdown Excess and the loss involves costs under other Sections of the policy other than Section 1 Hardware then the standard policy excess shall apply to those sections In the event that the loss under Section 1 resulting from Breakdown exceeds the Breakdown Excess then the higher Excess shall apply to the whole loss Page 10 of 24 Version 3.0 Engineering Master Schedule

11 BASIS OF COVER - COMPUTER Section 1 - Hardware Where the Insured requests indemnity under Section 1- Hardware, cover is in respect of all premises declared by the Insured and stated in the individual Risk Schedule or in any Endorsement(s) used by the Insured for the purposes of the Business. Where cover is provided for the specific Insolvency Appointment under the Scheme, Section 1 Hardware will be shown as insured in the individual Risk Schedule. Cover is in respect of Hardware as defined in the Master Schedule Endorsement as declared by the Insured and for the Limit of Liability declared by the Insured and shown on the Risk Schedule for the Basis of Settlement declared by the Insured and shown on the Risk Schedule up to a total Limit of Liability of 750,000 at any one Premises or in aggregate across all Premises or any one Accident or series of Accidents arising from one occurrence of loss or damage unless otherwise agreed and accepted by HSB. Any amounts shown in the Extensions shall be in excess of the Limit of Liability of 750,000. Where the Insured has yet to declare the Limit of Liability under Section 1 - Hardware or the Insured has declared the Limit of Liability under Section 1 - Hardware and the total Limit of Liability is in excess of 750,000 at any one Premises or in aggregate across all Premises, HSB shall only be liable up to 750,000 at any one Location or in aggregate across all Locations or any one Accident or series of Accidents arising from any occurrence of loss or damage unless otherwise agreed and accepted by HSB. Any amounts shown in the Extensions shall be in excess of the Limit of Liability of 750,000. Section 2 Reinstatement of Data Where the Insured requests indemnity under Section 2 Reinstatement of Data, cover is in respect of all Premises declared by the Insured under Section 1 - Hardware Cover is in respect of the Limit of Liability as declared by the Insured and shown on the Risk Schedule up to a Limit of Liability of 50,000 at any one Premises or in aggregate across all Premises or any one Accident or series of Accidents arising from one occurrence of loss or damage unless otherwise agreed and accepted by HSB. Where the Insured has yet to declare the Limit of Liability under Section 2 Reinstatement of Data or the Insured has declared the Limit of Liability under Section 2 Reinstatement of Data and upon declaration the Limit of Liability declared is in excess of 50,000, HSB shall only be liable up to 50,000 at any one Premises or in aggregate across all Premises or any one Accident or series of Accidents arising from one occurrence of loss or damage unless otherwise agreed and accepted by HSB. Section 3 Increased Costs Of Working Where the Insured requests indemnity under Section 3 Increased Costs of Working section cover is in respect of all Premises declared by the Insured under Section 1 - Hardware. Cover is in respect of the Limit of Liability as declared by the Insured and shown on the individual Risk Schedule for the Indemnity Period declared by the Insured and shown on the individual Risk Schedule up to a Limit of Liability of 100,000 any one Accident or series of Accidents arising from any one occurrence of loss or damage unless otherwise agreed and accepted by HSB. Page 11 of 24 Version 3.0 Engineering Master Schedule

12 Where the Insured has yet to declare the Limit of Liability under Section 3 - Increased Costs of Working section or the Insured has declared the Limit of Liability under Section 3 Increased Costs of Working but where upon declaration the Limit of Liability declared is in excess of 100,000, HSB shall only be liable up to 100,000 at any one Premises or in aggregate across all Premises or any one Accident or series of Accidents arising from one occurrence of loss or damage unless otherwise agreed and accepted by HSB. Section 4 Virus Hacking and Denial of Service Attack Where the Insured requests indemnity under Section 2 Reinstatement of Data and/or Section 3 Increased Costs of Working cover in respect of Section 4 Virus Hacking and Denial of Service Attacked is insured. Cover is in respect of the Limit of Liability declared by the insured up to a maximum limit of the aggregate of the Limits of Indemnity under Section 2 Reinstatement of Data and/or Section 3 Increased Costs of Working or 50,000 (whichever Limit of Indemnity is the lower of these two figures) Where the Insured has yet to declare Limit of Liability under Section 4 Virus Hacking and Denial of Service Attack the maximum Limit of Liability is 50,000. Where the Insured has declared the Limit of Liability but where upon declaration the Limit of Liability declared is in excess of 50,000HSB shall only be liable up to 50,000 any one Accident or series of Accidents arising from one occurrence of loss or damage unless otherwise agreed and accepted by HSB. Terrorism attaching to Computer Policies Where the Insured declares terrorism cover is required in respect of limits of liability covered under the Scheme for a specific Insolvency appointment, cover is subject to the premiums, conditions and wordings issued by HSB on a risk by risk basis. Page 12 of 24 Version 3.0 Engineering Master Schedule

13 Engineering HSB Master Policy Number: LBL Policy Wording Equipment Breakdown & Damage Insurance Policy Wording Reference STA-SUD and STA-PLA Where cover is provided for the specific Insolvency Appointment under the Scheme Engineering Policy, the Engineering Policy will be shown as insured on the individual Risk Schedule. The above policy wording is subject to the following Master Schedule Endorsements which apply to all Scheme Engineering policies unless amended by the individual Risk Schedule. WISEN01 Master Schedule Endorsement Under Policy Wording STA-PLA enclosing the general policy terms and conditions, the following is deleted General Conditions Item 10 Alterations in Risk The sections How To Notify Us of Claims and Customer Service and Complaints Procedure are replaced with the following wordings How to Notify us of Claims Claims should be notified promptly to Willis Limited at the address shown in the Operating Manual for the Insurance Facility for Insolvency Practitioners (the Manual). Customer Service & Complaints Procedure HSB is committed to the highest standards of customer service and aims to achieve customer satisfaction in all cases. If you have any cause for complaint, therefore, you should let us know immediately. If your complaint relates to your policy, in the first instance please contact Willis Ltd. The Manager Willis Insolvency Services Willis Ltd 40 St Paul s Square Birmingham B3 1FQ Tel Fax If your complaint relates to a claim on your policy, please contact the department dealing with your claim. When you make contact please tell Willis the following information: Your policy and / or claim number, and the type of policy you hold The reason for your complaint Telephone contact is often the most effective way to resolve complaints quickly. If the matter cannot be resolved simply with Willis Limited, you should contact us at the following address:- Group Operations Manager Page 13 of 24 Version 3.0 Engineering Master Schedule

14 HSB Engineering Insurance Ltd Chancery Place, 50 Brown Street Manchester, M2 2JT Tel Fax We shall always acknowledge your complaint within 5 business days and do our best to resolve it within four weeks. If the matter remains unresolved at the end of eight weeks, or you are unhappy with our response, you may, if you are a small business, have recourse to the Financial Ombudsman Service, or other dispute resolution service. Your right to take legal proceedings is not affected by this complaints procedure. Under Policy Wording STA-SUD Equipment Breakdown and Damage Insurance Specification the following amendments are made The following amendments are made to Special Definitions The following wording is added Willis/Your Broker means Willis Limited Fuel Tanks Tanks or similar containers designed and used to store oil and other fossil fuels or liquid propane gas The following wording is added to Definition - Insured Property (i) plant machinery pipes or cables situated underground Additional Cover is amended to include the following 11. Fuel Storage Tanks Loss of Contents Where Fuel Tanks are specified on the Risk Schedule the Company will subject to the Limit of Indemnity for this Extension indemnify The Insured against a) loss or damage to contents stored therein caused by damage which would or would but for the excess be insured under Specification SUD b) the cost incurred by the insured in cleaning up the spilled or leaked contents from fuel tanks insured by this policy. This endorsement does not cover loss due to 1. subsidence or other ground movement or displacement 2. seepage evaporation or any normal trade loss 3. solidification (howsoever caused) Limit of Indemnity: Item a) 50,000 per tank and 250,000 in the aggregate Item b) 50, Tank Damage Extension Page 14 of 24 Version 3.0 Engineering Master Schedule

15 Where Fuel Tanks are specified in the Risk Schedule the indemnity provided under Specification SUD is extended to include:- (i) (ii) Cleaning and mopping up costs resulting from insured damage Damage to Own Surrounding Property as detailed under Additional Cover OSP attaching to Specification SUD This endorsement does not cover loss due to:- (i) (ii) (iii) Solidification of the contents of the Insured Property Damage to any non-metallic linings unless such damage arises out of an accident causing more overall damage for which The Company is responsible under this Specification to other parts of the Machinery (see Special Definitions of Specification SUD for Definition of Machinery) Pollution or contamination of any nature Limit of Indemnity: 250, Damage to goods being lifted The Company will subject to the Limit of Indemnity for this Extension indemnify The Insured against accidental direct damage to property owned by or leased to or in the custody or control of The Insured whilst being handled by the Insured Property and arising out of its normal use This Extension does not cover damage resulting from a fault in or fragility of the property being lifted or its container Limit of Indemnity 5,000 The excess to be applied in the event of a claims shall be: 1. 1,000 or 2. 10% of the loss or 3. The policy excess whichever is the greater. 14. Own Surrounding Property Extension Cover Clause The Company will subject to the Limit of Indemnity for this Extension indemnify The Insured against damage to property owned by or leased to The Insured and for which The Insured is responsible a) directly resulting from Explosion of Pressure Plant b) directly resulting from any damage to the Insured Property insured under this Specification c) caused by impact through the normal operation of lifting and handling Insured Property though the Insured Property itself may not be damaged This Extension does not cover damage (i) (ii) (iii) to the Insured Property causing the damage or any Insured Property directly driving or driven by the Insured Property to property being handled conveyed heated cooled or processed by or contained in the Insured Property caused by leakage or by lack of heat cooling light power or steam excepting that (ii) and (iii) above shall not apply to damage directly consequent upon and solely due to Explosion Limit of Indemnity 2,000,000 Page 15 of 24 Version 3.0 Engineering Master Schedule

16 The policy excess shall apply in the event of a claim All other terms and conditions remain unaltered Excess Sudden & Unforseen Damage, Breakdown, Explosion, Collapse, Accidental Damage and damage to Own Surrounding Property the first 250 of each and every claim Damage to Fuel Tanks the first 250 of each and every claim The first 48 hours immediately following the occurrence under the increase costs extension Equipment Breakdown and Damage Where the Insured requests indemnity for Sudden & Unforeseen Damage Section, cover is in respect of all plant and machinery (or as more specifically described in the individual Risk Schedule) owned by or leased to the Insured at the Location and ready for use in connection with the Business declared by the Insured and stated in the individual Risk Schedule or in any Endorsement(s). Where cover is provided for the specific Insolvency Appointment under the scheme, the Equipment Breakdown and Damage section will be shown as insured in the individual Risk Schedule. Cover is in respect of the Limit of Liability declared by the Insured and shown on the Risk Schedule up to a maximum Limit of Liability of 500,000 for any one accident or series of accidents arising from one occurrence of loss or damage unless otherwise agreed and accepted by HSB. Where the Insured has yet to declare the Limit of Liability for Equipment Breakdown and Damage or the Insured has declared the Limit of Liability for Equipment Breakdown and Damage and the Limit of Liability is in excess of 500,000, HSB shall only be liable up to 500,000 any one accident or series of accidents arising from one occurrence of loss or damage unless otherwise agreed and accepted by HSB. Page 16 of 24 Version 3.0 Engineering Master Schedule

17 Engineering Inspection HSB Master Policy Number: Contract Wording Policy Wording Reference LBL Contract for Thorough Examination/Inspection of Plant STA-INS Where cover is provided for the specific Insolvency Appointment under the Scheme Engineering Inspection Contract, the Engineering Inspection Contract will be shown as Contract in Force on the individual Risk Schedule. The service contract is in respect of inspections required under Statute or additional inspections requested by the Insured during the Contract Period at the Sites declared by the Insured. Where a written scheme of examination is required to carry out the inspection but the document is not made available for the inspection, HSB will provide a written scheme of examination for an additional charge. Deterioration of Stock HSB Master Policy Number: LBL Policy Wording: Deterioration of Stock Insurance Policy Wording Reference: STA-DOS and STA-PLA Where cover is provided for the specific Insolvency Appointment under the Scheme Deterioration of Stock Policy, the Deterioration of Stock Policy will be shown as insured in the individual Risk Schedule. The above policy wording is subject to the following Master Schedule Endorsement which applies to all Scheme Deterioration of Stock policies unless amended by an individual Risk Schedule. WISDOS01 Master Schedule Endorsement Under Policy Wording STA-PLA enclosing the general policy terms and conditions, item 10 Alterations in Risk is restated as follows Alterations in Risk 10. The Insurance under this Policy may be avoided if any alterations are made either to the business as stated in the schedule or in the premises or property whereby the risk of loss or damage is increased any loss minimising factors in existence at the commencement of the insurance are reduced discontinued or not maintained unless its continuance be accepted by The Company and the Policy endorsed accordingly Excess The first 5% of each and every Accident subject to a minimum deductible of 500 each and every Accident The sections How To Notify Us of Claims and Customer Service and Complaints Procedure are replaced with the following wordings How to Notify us of Claims Page 17 of 24 Version 3.0 Engineering Master Schedule

18 Claims should be notified promptly to Willis Limited at the address shown in the Operating Manual for the Insurance Facility for Insolvency Practitioners (the Manual). Customer Service & Complaints Procedure HSB is committed to the highest standards of customer service and aims to achieve customer satisfaction in all cases. If you have any cause for complaint, therefore, you should let us know immediately. If your complaint relates to your policy, in the first instance please contact Willis Ltd. The Manager Willis Insolvency Services Willis Ltd 40 St Paul s Square Birmingham B Fax If your complaint relates to a claim on your policy, please contact the department dealing with your claim. When you make contact please tell Willis the following information: Your policy and / or claim number, and the type of policy you hold The reason for your complaint Telephone contact is often the most effective way to resolve complaints quickly. If the matter cannot be resolved simply with Willis Limited, you should contact us at the following address:- Group Operations Manager HSB Engineering Insurance Ltd Chancery Place, 50 Brown Street Manchester, M2 2JT Tel Fax We shall always acknowledge your complaint within 5 business days and do our best to resolve it within four weeks. If the matter remains unresolved at the end of eight weeks, or you are unhappy with our response, you may, if you are a small business, have recourse to the Financial Ombudsman Service, or other dispute resolution service. Your right to take legal proceedings is not affected by this complaints procedure. Under Policy Wording STA-DOS the following is added Special Condition 1. The Insured shall take daily temperature readings of all items in the Schedule and shall log the same for production if requested Where items are not the property of The Insured The Insured shall obtain written confirmation from the owners that temperature readings are undertaken and logged and ensure the log is made available to The Company if so requested Page 18 of 24 Version 3.0 Engineering Master Schedule

19 All other terms and conditions remain unaltered Page 19 of 24 Version 3.0 Engineering Master Schedule

20 BASIS OF COVER DETERIORATION OF STOCK Where the Insured requests indemnity under the Deterioration of Stock Policy, cover is in respect of stock in any cold chamber specified in the Risk Schedule or in any Endorsement(s) in consequence of an Accident or which are at The Situation and would have been placed in the normal course of business in the declared cold chamber(s) but for the Accident as declared by the Insured and stated in the individual Risk Schedule. Cover is in respect of the Limit(s) of Indemnity declared by the Insured and shown on the Risk Schedule up to the maximum Limits of Indemnity shown in the table below for any one Accident or series of Accidents arising from one occurrence of loss or damage unless otherwise agreed and accepted by HSB. Any amounts shown in the Extensions shall be in excess of the Limits of Indemnity shown below. Description Maximum Limit of Indemnity Public Cold Stores Up to 500,000 Private Cold Stores Up to 50,000 Refrigerated Vehicles (per vehicle limit) Up to 10,000 Any one Accident or series of Accidents arising from one occurrence of loss or damage Other Equipment (Chilled Goods) Up to 5,000 Where the Insured has yet to declare the Limit(s) of Liability under the Deterioration of Stock Policy or the Insured has declared the Limit(s) of Liability under the Deterioration of Stock Policy and the Limit(s) of Liability are in excess of those shown in the table above, HSB shall only be liable up to the Limit(s) of Liability shown above unless otherwise agreed and accepted by HSB. Page 20 of 24 Version 3.0 Engineering Master Schedule

21 Machinery Movement HSB Master Policy Number: LBL Policy Wording Machinery Movement Insurance Policy Wording Reference STA-MMI and STA-PLA Where cover is provided for the specific Insolvency Appointment under the Scheme Machinery Movement Policy, the Machinery Movement Policy will be shown as insured on the individual Risk Schedule. The above policy wording is subject to the following Master Schedule Endorsement which applies to all Scheme Machinery Movement policies unless amended by an individual Risk Schedule. WISMM01 Master Schedule Endorsement Under Policy Wording STA-PLA enclosing the general policy terms and conditions, item 10 Alterations in Risk is restated as follows Alterations in Risk 10. The Insurance under this Policy may be avoided if any alterations are made either to the business as stated in the schedule or in the premises or property whereby the risk of loss or damage is increased any loss minimising factors in existence at the commencement of the insurance are reduced discontinued or not maintained Excess unless its continuance be accepted by The Company and the Policy endorsed accordingly The first 5% of each and every loss subject to a minimum of 500 The sections How To Notify Us of Claims and Customer Service and Complaints Procedure are replaced with the following wordings How to Notify us of Claims Claims should be notified promptly to Willis Limited at the address shown in the Operating Manual for the Insurance Facility for Insolvency Practitioners (the Manual). Customer Service & Complaints Procedure HSB is committed to the highest standards of customer service and aims to achieve customer satisfaction in all cases. If you have any cause for complaint, therefore, you should let us know immediately. If your complaint relates to your policy, in the first instance please contact Willis Ltd. The Manager Willis Insolvency Services Willis Ltd 40 St Paul s Square Birmingham B3 1FQ Tel Fax Page 21 of 24 Version 3.0 Engineering Master Schedule

22 If your complaint relates to a claim on your policy, please contact the department dealing with your claim. When you make contact please tell Willis the following information: Your policy and / or claim number, and the type of policy you hold The reason for your complaint Telephone contact is often the most effective way to resolve complaints quickly. If the matter cannot be resolved simply with Willis Limited, you should contact us at the following address:- Group Operationsl Manager HSB Engineering Insurance Ltd Chancery Place, 50 Brown Street Manchester, M2 2JT Tel Fax We shall always acknowledge your complaint within 5 business days and do our best to resolve it within four weeks. If the matter remains unresolved at the end of eight weeks, or you are unhappy with our response, you may, if you are a small business, have recourse to the Financial Ombudsman Service, or other dispute resolution service. Your right to take legal proceedings is not affected by this complaints procedure. All other terms and conditions remain unaltered BASIS OF COVER MACHINERY MOVEMENT Where the Insured requests indemnity under the Machinery Movement Policy, cover is in respect of all Insured Property declared by the Insured and stated in the individual Risk Schedule or in any Endorsement(s). Cover is in respect of the Limit of Indemnity declared by the Insured and shown on the Risk Schedule up to a maximum Limit of Indemnity of 750,000 for any one Operation unless otherwise agreed and accepted by HSB. Any amounts shown in the Extensions shall be in excess of the Limit of Liability for Machinery Movement. Where the Insured has yet to declare the Limit of Indemnity under the Machinery Movement Policy or the Insured has declared the Limit of Indemnity and the Limit of Indemnity is in excess of 750,000, HSB shall only be liable up to 750,000 any one Operation unless otherwise agreed and accepted by HSB. Page 22 of 24 Version 3.0 Engineering Master Schedule

23 Willis Limited is remunerated through brokerage received from HSB. The brokerage amounts as a percentage of the premium are ENGINEERING INSPECTION Service Contract 22.0 GOODS IN COLD STORAGE ENGINEERING MACHINERY MOVEMENT COMPUTERS BINDING AUTHORITY Goods In Cold Storage 27.5 Terrorism 10.0 Sudden and Unforeseen Damage Own Surrounding Property 27.5 Terrorism 10.0 Machinery Movement 27.5 Terrorism 10.0 Material Damage Computer Media Additional Expenditure 27.5 Terrorism 10.0 Please note that the Scheme is arranged through a binding authority, which provides Willis with delegated authority to underwrite, prepare, sign and issue policy documentation on behalf of insurers. This enables Willis to improve the service to you in delivering your insurance policy. Further, in performing this function for insurers, we act as their agent and for the other services we provide them. This is a specially agreed insurance arrangement exclusive to Willis. Should you appoint another broker during the currency of the policy they will not have access to this Scheme and therefore they will need to contact Willis to discuss the arrangements should you require this cover to continue until its natural expiry. CANCELLATION Willis may cancel this Master Schedule by giving the Master Policy holder thirty (30) calendar days notice in writing at their last known address. Where a specific Insolvency Practitioner appointment has been made under the Scheme prior to cancellation of the Master Schedule, cover will continue in accordance with the limits, terms, conditions or endorsements on an individual Risk Schedule issued by Willis in respect of a specific Insolvency Practitioner appointment until its expiry unless specifically cancelled in accordance with the cancellation terms for the specific Insolvency Practitioner appointment within the Policy wording. Page 23 of 24 Version 3.0 Engineering Master Schedule