Alterations to your Group Policy

Transcription

1 Alterations to your Group Policy (This document is also available as part of the online renewal process) We are delighted to announce that we are making extensive enhancements to the options available for your Group policy, which take effect from the renewal date. These changes have been made following a review of the performance of the policy and demonstrate our commitment to the continuous improvement of our policy offering. We have listed the most significant alterations below. There are also some changes being made to your Group policy as a result of a new piece of legislation, The Insurance Act 2015, which introduces changes to UK insurance contracts. Further details are provided later in this document. In addition, please see the policy Summary and Guide online at the following address: The Summary and Guide highlights the significant features and benefits and the significant exclusions and limitations of the cover provided by the updated policy. Please note that the details in the Summary and Guide are not the full policy document. We will be sending you a new policy document at renewal which will contain full details of your cover and should be read in conjunction with your Policy Schedule to ensure that your requirements have been met. In the meantime, a copy policy can be provided on request, to assist you in considering the renewal invitation. The Group policy is insured by Covéa Insurance plc (Covéa Insurance) for all sections other than the Legal Expenses Section, which is administered by ARAG plc, a coverholder of the insurer Brit Syndicate 2987 at Lloyd's. The page numbers stated below refer to the Summary and Guide. NEW SECTION Professional Indemnity Section Page 7 NEW SECTION Directors, Trustees and Officers Liability Section Page 8 NEW SECTION Group Officials Personal Effects Section Page 15 NEW SECTION Group Officials Personal Money Section Page 15 NEW SECTION Employee Dishonesty Page 20 NEW SECTION Group Extra Section Page 21, made up of the following: Crisis Containment Website Hacker Damage Lottery Win Indemnity NEW SECTION - Cancellation Section covers your events against cancellation, abandonment or postponement Public Liability Section Now called Public and Products Liability Section Page 4 Products Liability now included as standard rather than being an optional cover 1 KH

2 Compensation for court attendance has now been included which covers you for the costs of attendance at court to help defend or act as a witness in connection with any claim as agreed with Covéa Insurance up to a limit of 250 per day Data Protection Act 1998 cover now includes any amount you are legally liable to pay under Section 13 of the Data Protection Act 1998 in connection with data held by you. This cover will not pay for any fines or penalties or replacing, reinstating, rectifying or erasing any personal data Defective Premises Act 1972 has now been included which covers any amount you are legally liable to pay under the terms of the Defective Premises Act 1972 or the Defective Premises (Northern Ireland) Order 1975 in connection with any business premises or land which have been disposed of by you Health and Safety at Work Act 1974 the policy is extended to cover payments to you for any legal costs and expenses incurred (with Covéa Insurance s consent) in the defence of any criminal proceedings brought in respect of a breach of Health and Safety at Work etc. Act 1974 Consumer Protection and Food Safety Acts the policy is extended to cover legal costs incurred (with Covéa Insurance s consent) in connection with the defence of proceedings or an appeal against conviction arising from such proceedings brought for breach of the Consumer Protection Act 1987 and the Food Safety Act Face Painting, Skate Boarding, Roller Blading please be aware that new Conditions have been introduced in relation to these activities. Please see the Policy document for details. Employers Liability Section Page 6 Compensation for court attendance has now been included which covers you for the costs of attendance at court to help defend or act as a witness in connection with any claim as agreed with the insurer up to a limit of 250 per day Health and Safety at Work Act 1974 there is no longer a limit of liability of 10,000 in respect of payments to you for any legal costs and expenses incurred (with insurer s consent) in the defence of any criminal proceedings brought in respect of a breach of the Health and Safety at Work etc. Act 1974 Indemnity to other persons cover by this section is extended to pay at your request any of your directors, partners, principal or committee members or employees for amounts which they are legally liable in respect of which you would have been entitled to payment under this policy had the claim been made against you Unsatisfied Court Judgements cover is extended to include payment of judgements for damages obtained by employees in respect of bodily injury that have remained unsatisfied wholly or in part for six months provided that there is no appeal outstanding and that the judgement is assigned to Covéa Insurance Legal Expenses Section - Page 9 The Legal Expenses section is now administered by ARAG PLC on behalf of Insurer Brit Syndicate 2987 at Lloyds. We are pleased to advise that as well as improved cover, you now also have access to Business Legal Service which provides access to legal documents to assist you with commercial matters. You will need to register at using voucher code ARAG7537BIZ. There are new telephone numbers for Claims and Helplines. Please quote Morton Michel policy and your policy number: Legal and Tax Advice Helpline: Redundancy approval Helpline: Crisis communication: Counselling Helpline: Please note that Health & Medical Information Service helpline is withdrawn as NHS 111 is freely available. 2 KH

3 Making a Claim If you need to make a claim you must notify Insurers as soon as possible and under no circumstances should you instruct your own lawyer or accountant as the insurer will not pay any costs incurred without prior agreement. You can request a claim form between 9am and 5pm Monday to Friday (except bank holidays) by telephoning or by downloading one at A written acknowledgement within one working day of receiving your claim form will be provided and within five working days of receiving all the information needed to assess the availability of cover under this section of the policy, Insurers will either: confirming the appointment of a qualified representative who will promptly progress the claim for you; or if the claim is not covered, explain in full why and whether they can assist in another way. The cover provided is now listed as Insured events. The following changes apply to all insured events: New exclusions apply relating to allegations involving: the manufacture, dealing in or use of alcohol, illegal drugs, illegal immigration. money Laundering offences. The changes to each Insured event are as follows: Employment There is no longer an exclusion applying to current T.U.P.E regulations (these regulations impose obligations on employers where employees transfer from one employer to another following acquisition of business or the transfer of a contract to provide services between service providers.) Employment compensation awards There are no longer exclusions for: a settlement agreed and payable following conciliation under the ACAS Early Conciliation procedure compensation awards relating to pregnancy or maternity rights, paternity, parental or adoption rights any award ordered because you have failed to provide relevant records to employees under the National Minimum Wage laws any compensation award or increase in compensation award ordered by the tribunal for failure to comply with a recommendation it has made, including non-compliance with a reinstatement or reengagement order. Employment Restrictive Covenants Cover is included for legal costs to seek damages from your employee or ex-employee where they have breached a restrictive covenant in their employment contract with you or to defend a claim where another party alleges that you are in breach of a restrictive covenant. Tax Protection Cover has been widened to include: HMRC enquiries into the personal tax affairs of your directors and/or partners (in addition to your business tax affairs) an enquiry into your tax affairs, the personal tax affairs of your directors and/or partners arising from an alleged discovery by HM Revenue and Customs. Exclusion applies to any enquiry that concerns assets, monies or wealth outside of Great Britain and Northern Ireland. There is no longer an exclusion relating to your failure to register for Pay As You Earn. Property Cover is now provided for property which you wish to recover or repossess from an employee or ex-employee. 3 KH

4 There are no longer exclusions for: motor vehicles owned by or used by, or hired to an insured person goods not at a premises other than those occupied by you mining subsidence Legal Defence Cover has been extended to defend your business and your employees if they are prosecuted for a motoring offence. Your directors and/or partners also enjoy cover while driving for personal, social or domestic purposes or to commute to or from their place of work. Territorial Limits now extends to include countries of the European Union plus Norway and Switzerland. Compliance and Regulation You are covered for legal costs for advice and representation if you receive notice of a formal investigation or disciplinary hearing by any professional or regulatory body (for example OFSTED). You are also covered for legal costs to appeal against a legal notice issued against you by your regulator (for example an OFSTED initial or final warning letter). Loss of Earnings Loss of earnings cover has been enhanced to provide for an insured person s absence from work to attend mediation, a professional body s disciplinary hearing or regulatory proceedings at the request of an appointed advisor. Employees Extra Protection Cover includes Identity theft targeted at Directors and/or partners. Cover for an insured person or a member of their family if they suffer bodily injury or death as a result of a sudden event. Crisis Communication You can get help from a professional PR consultant to deal with communications where an event causes your business significant adverse publicity or reputational damage. PR consultancy costs are covered up to 10,000. Contract and debt recovery There are no longer exclusions for: claims relating to motor vehicles disputes arising from an agreement entered into prior to the inception date of this section but where the date of occurrence is within the first 90 days of the inception date of this section; claims relating to the sale, purchase, and terms of a lease, licence or tenancy. An excess of 500 for contractual disputes that exceed 5,000 in value. The minimum amount in dispute for claims to apply has been reduced to 200 from 250. Territorial Limits extend to include countries of the European Union plus Norway and Switzerland. Group Contents Section Page 12 We have changed the way the Contents section of this policy operates. Instead of covering you for specific perils for instance fire, flood, and theft etc.the policy will now cover you for All Risks unless they are specifically excluded. We have also added or altered elements of cover: Accidental Damage cover is extended to include accidental damage as standard to the group contents Capital Additions cover is now included as standard for newly acquired Group Contents (and tenant s improvements where shown as insured in the Schedule) up to a limit of liability of 50,000 or 20% of the Group Contents sum insured, whichever is the lower, provided that the items are not insured elsewhere and that Covéa Insurance are notified as soon as possible or within 6 months of the addition and the appropriate premium is paid from the commencement date of your liability for such property Computer systems records standard cover is no longer restricted to 5% of the sum insured for this section 4 KH

5 Documents and computer records stored away from the premises cover is extended to include damage to deeds and other documents, manuscripts, plans and writings of every description, books and computer systems records being stored in the home of any authorised group official or in a self-contained unit in a storage facility up to a limit of liability of 25,000 or 10% of the Group Contents sum insured, whichever is the lower Documents and computer records temporary removal cover is extended to include damage to deeds and other documents, manuscripts, plans and writings of every description, books and computer systems records whilst temporarily removed to a premises not in your occupation Exhibitions cover is now provided for damage to Group Contents whilst within the premises of any trade show or exhibition within Europe (including whilst in transit thereto and therefrom) up to a limit of liability in any one period of insurance of 50,000 or 20% of the Group Contents sum insured, whichever is the lower. Excludes theft from an unattended vehicle. Landscaping Costs cover now includes cost of repairing damage to gardens and grounds at the premises caused by fire brigade equipment or personnel, up to limit of liability in any one period of insurance of 25,000 or 20% of the Group Contents sum insured, whichever is the lower Loss of metered gas and water cover is extended to include loss of metered gas, as well as metered water, for which you are legally responsible following damage at the premises, up to a limit of liability in any one period of insurance of 25,000 or 20% of the Group Contents sum insured, whichever is the lower Additional Statutory Costs cover is extended to include reasonable incurred additional costs involved with complying with statutory regulations or local authority requirements following damage to the Group Contents up to a limit of liability of 500,000 or 20% of the Group Contents sum insured, whichever is the lower Theft Damage to premises there is now a limit of liability of 50,000 or 20% of the Group Contents sum insured, whichever is the lower, in respect of any one loss. Theft of Keys the limit of liability that applies to this section has been increased to 2,500 in any one period of insurance. Also, there is no longer a total exclusion applying to theft of keys left on the premises after business hours. Trace and Access in the event of damage at the premises caused by the escape of water or oil from any fixed installation, cover is extended to include costs necessarily and reasonably incurred in locating the source of damage in order to effect repairs and make good. Limit of liability in any one period of insurance of 25,000 or 20% of Group Contents sum insured, whichever is the lower. Unauthorised use of Electricity Gas Water cover is extended to provide for the cost of loss of metered electricity, gas and water for which you are legally responsible arising from unauthorised use. Limit of liability in any one period of insurance of 50,000 or 20% of Group Contents sum insured, whichever is the lower. Drains Sewers Gutters cover is now extended to include costs and expenses necessarily incurred for cleaning and clearing of drains, sewers and gutters in consequence of damage to the Group Contents. Limit of liability in any one period of insurance of 25,000 or 20% of the Group Contents sum insured, whichever is the lower. Fire Brigade Charges cover is extended to include reasonable costs charged by any Public Authority relating to the extinguishing or fighting of fire. Limit of liability in any one period of insurance of 50,000 or 20% of the Group Contents sum insured, whichever is the lower. Continuing interest and hire charges in the event of damage at the premises cover is extended to pay any interest charge or continuing hire charges not recoverable under the terms of a lease for which you are liable. Limit in any one period of insurance of 10,000 or 20% of the Group Contents sum insured, whichever is the lower Fixed Outside Equipment Increased limit of liability of 5,000 in any one period of insurance. Groundsmen s machines etc. in garden(s) cover is extended to include cover for damage to groundsmen s machines and equipment in the garden(s) of the premises up to a limit of liability of 1,000 in any one period of insurance Seasonal Increase cover is extended to provide an automatic increase in the Group Equipment sum insured by 10% (or 2,500, whichever is the lower) between the 1 st and the 31 st December each year 5 KH

6 Glass a limit of liability of 25,0000 or 20% of the Group Contents sum insured whichever is the lower now applies to this cover Additional Clauses: 72 hours clause in respect of a flood or storm claim, the 72 hour clause is a new clause which allows you to select a 72 hour period of damage to be regarded as one claim (and only subject to one excess). Architect and Surveyor fees - within the overall limit of the sum insured on property insured(excluding stock and specified stock) cover is extended to pay the cost of architects, surveyors, consulting engineers', legal and other fees necessarily and reasonably incurred with insurer s consent in the reinstatement or repair of the property following damage but excluding fees charged for the preparation of any claim Group Contents Anywhere in the United Kingdom Section Page 13 - this replaces the All Risks Section and provides cover for unspecified Group Contents or any other property insured described in the schedule whilst temporarily removed from the premises, including in transit, within the territorial limits. Where the Group Contents section is operative this cover will automatically apply with a limit of up to 2,500 of the Group Contents sum insured. Inner limits apply which can be increased on request. Group Money Section - Page 14 Non-negotiable Money A limit for non-negotiable money has been applied at 25,000 Personal Custody the limit for money in transit in the personal custody of any Group Official or in a bank night safe has been increased from 500 to 1,000 Money on premises during business hours - the limit for money on the premises during business hours is increased from 500 to 1,000 (amounts exceeding 500 must be kept in a locked safe, locked desk or locked filing cabinet). Money on premises out of business hours the limit for money on the premises out of business hours contained in locked safe(s) is increased from 250 to 1,000. There is now also cover for money on the premises not in locked safe(s) limit. Safes cover has been extended to include costs of repair or replacement following theft or attempted theft of safes up to a limit of 1,000 in any one period of insurance Credit Cards cover has been extended to include any amount you may become liable for under the terms of any issuing bank for any fraudulent use by any unauthorised person up to a limit of 1,000 in any one period of insurance Personal Assault cover has been extended to include group officials up to the age of 75 years whereas previously the upper age limit was 70 years Personal Assault the compensation for temporary total disablement has been increased from 50 per week to 100 per week Personal Assault/Personal Effects cover has been extended to include damage to personal effects arising as a direct result of robbery or hold up or any attempt thereat up to a limit of 250 any one group official Buildings Section - Page 16 We have changed the way the Buildings section of this policy operates. Instead of covering you for specific perils for instance fire, flood, and theft etc.the policy will now cover you for All Risks unless they are specifically excluded. We have also added or altered elements of cover: Capital Additions - cover is now included as standard for newly acquired and/or newly erected buildings up to a limit of liability of 250,000 or 10% of the buildings sum insured, whichever is the lower, provided that the items are not insured elsewhere and that Covéa Insurance are notified as soon as possible or within 6 months of the addition and the appropriate premium is paid from the commencement date of your liability for such property 6 KH

7 Theft of fixed fabric cover has been extended to include theft of fixed fabric of the building, including fixed external CCTV equipment and security lighting up to a limit of liability of 50,000 or 20% of the buildings sum insured, whichever is the lower in any one period of insurance Additional costs of construction (Energy Efficiency) cover has been extended to include (following damage to the buildings) additional costs of reinstatement arising solely from the necessity to comply with the application of the EC Directive on Energy Performance on Buildings 2002/91 up to a limit of liability of 100,000 or 10% of the buildings sum insured, whichever is the lower Trace and Access in the event of damage at the premises caused by the escape of water or oil from any fixed installation, cover is extended to include costs necessarily and reasonably incurred in locating the source of damage in order to effect repairs and make good. Limit of liability in any one period of insurance of 25,000 or 20% of Buildings sum insured, whichever is the lower. Drains Sewers and Gutters - cover is now extended to include costs and expenses necessarily incurred for cleaning and clearing of drains, sewers and gutters in consequence of damage to the Group Contents. Limit of liability in any one period of insurance of 25,000 or 20% of the Buildings sum insured, whichever is the lower. Fire Brigade Charges - cover is extended to include reasonable costs charged by any Public Authority relating to the extinguishing or fighting of fire. Further Investigation Costs cover is extended to include reasonable costs incurred (with insurer s consent) for the opinion of a competent construction professional to establish whether or not other portions of the same building or buildings in the immediate vicinity have suffered such damage by the same incident up to a limit of 5,000 in any one period of insurance. Sanitary Ware and underground service pipes or cables a limit of 2,500 now applies in any one period of insurance Landscaping Costs -cover now includes cost of repairing damage to gardens and grounds at the premises caused by fire brigade equipment or personnel, up to a limit of liability of 25,000 or 20% of the Buildings sum insured whichever is the lower Additional Clause - 72 hours clause in respect of a flood or storm claim, the 72 hour clause is a new clause which allows you to select a 72 hour period of damage to be regarded as one claim (and only subject to one excess). Endorsement and Special conditions GPE1 Subsidence - Applicable only where shown on your schedule. An increased excess of 2,500 for each claim in respect of subsidence, heave or landslip is now applicable. Terrorism Section Page 17 Phishing is added to the Terrorism risks that are not insured by the policy. Loss of Revenue Section Page 17 The sum insured provided under this section should be based on your estimate of the true gross revenue to be earned in the next twelve months and therefore this should be increased accordingly if necessary for an additional premium. Prevention of Access a limit of liability of 50,000 has been applied as well as a cover restriction to damage occurring within one kilometre of the premises which prevents or hinders the use of or prevents access to the premises Public Utilities a limit of liability of 50,000 in any one period of insurance has been applied but cover has been extended to include interruption or interference in consequence of damage to property at an internet service provider Documents and computer system records temporary removal a limit of liability of 50,000 in any one period of insurance has been applied for interruption of or interference with the business in consequence of damage to deeds and other documents, manuscripts, plans and writings of every description, books and computer system records whilst temporarily removed from the premises Documents and computer system records stored away from the premises cover is extended to include damage to deeds and other documents, manuscripts, plans and writings of every description, books and 7 KH

8 computer system records being stored in the home of any authorised group official or stored in a selfcontained unit in a storage facility up to a limit of liability of 25,000 Compulsory Closure the liability is limited to 50,000 in any one period of insurance and for a maximum indemnity period of 6 months for interruption of or interference with the business in consequence of compulsory closure by a public body authorised to prevent or restrict access to the premises. A definition has also been restated to notifiable human infectious or contagious disease to provide clarity within the wording Property in Transit cover is extended to include Interruption of or interference with the business in consequence of damage to Group contents whilst in transit by road, rail or inland waterway within the territorial limits. limit of liability of 25,000 in any one period of insurance Contract Sites cover extended to include interruption of or interference with the business in consequence of damage at any location not shown in the schedule at which you are contracted to undertake work anywhere within the territorial limits up to a limit of liability of 25,000 Exhibition Sites cover is extended to include interruption of or interference with the business in consequence of damage at any trade fair or exhibition location not shown in the schedule at which you are to occupy a stand anywhere in Europe up to a limit of liability of 25,000 Book Debts limit of liability of 100,000 in consequence of damage to your records of outstanding debit balances contained within the premises. A condition has been applied to the effect that at the end of each month you shall record the total amount outstanding in customers accounts and shall maintain a separate record in addition to the books of account, in a place other than the premises. Personal Accident for Adults at the Group Section Page 19 Cover has been extended to include adults at the group up to the age of 75 years whereas previously the upper age limit was 70 years Temporary Total Disablement benefit increased from 50 per week to 100 per week Medical Expenses now included at 50 per week in relation to valid claims under this Section The Insurance Act 2015 The Insurance Act 2015 (the Act ) has introduced changes to UK insurance contracts with effect from 12 August To assist you, we have summarised the main changes that may affect your policy. This summary does not constitute legal advice nor is it designed to be a summary of the Act itself. If you require any additional information please contact your insurance broker. Fair Presentation of Risk The main change introduced by the Act is the duty of fair presentation. We have introduced a Fair Presentation of the Risk condition into our policies. Under the new duty, at inception and renewal of our policies (and also whenever you request any changes) you will need to: tell us, in a clear and accessible manner, about all material facts; and not misrepresent any material facts. A material fact is a circumstance or representation that would influence an Insurer s decision to offer you insurance and, if so, on what terms. If you are unsure about whether a fact is material, please tell your insurance broker. Failure by you to make a fair presentation of material facts could result in a reduction in any claim payment or the imposition of additional terms. In certain circumstances, failure to make a fair representation may result in your insurance being avoided with no claims being payable. 8 KH

9 The duty to disclose continues throughout the term of your insurance and any material changes should be immediately notified to the insurer. If you are unsure as to whether or not an item is a material fact, you should disclose it. Warranties and Important conditions Prior to the Act, a breach of warranty would mean that you did not have cover and that a claim would not be paid. This is amended by the Act so that a breach of warranty will now result in cover being suspended for the duration of the breach, with cover being re-instated once the breach has been remedied (if that is possible). In order to effect these changes, we have replaced all warranties in our policies with conditions precedent. A Condition precedent to liability means that a breach of the condition will only allow an Insurer to avoid a claim where the breach of the condition is directly relevant to the claim in question. You should check your schedule to review the changes which apply to your Policy. Changes to your policy documentation Policy wording Various changes have been made to sections of your policy wording to reflect the adoption of the Act. Whilst these are summarised below we recommend that you review the policy wording carefully as these changes will apply to your policy with effect from the renewal date. Preamble and Introduction Change in risk Fair Presentation of the Risk Fraud Terms Not Relevant to a Loss Proposal Form/Statement of Fact The Proposal Form/Statement of Fact now contains a statement on the duty to make a fair presentation. The full clause is shown below; Fair Presentation of the Risk You have a duty to make a fair presentation of the risk which is covered by this policy. Therefore you should ensure that any information you have provided to us and the content of any application form, declaration and / or Statement of Fact is accurate and complete. Where you have provided us with information which relates to matters of your expectation or belief, it does not matter if such information turns out to be inaccurate provided that you acted in good faith when you provided us with such information. If you do not comply with your duty to make a fair presentation of the risk, including failing to disclose or misrepresenting a material fact, or disclosing material facts to us in a way which is not clear and accessible your policy may not be valid or the policy may not cover you fully or at all. A material fact is any fact which could influence our assessment or acceptance of your application for insurance. You must also tell us about any facts or changes which affect your insurance and which have occurred either since the policy started or since the last renewal date. If you are not sure whether certain facts are relevant please ask your insurance broker. If you do not tell us about relevant changes, your policy may not be valid or the policy may not cover you fully or at all. You must check all the information contained within this document immediately and tell us if any details are incorrect. 9 KH

10 You should keep a written record (including copies of letters) of any information you give us or your insurance broker. Other Changes to Your Policy - Cancellation The General Condition Cancellation has been amended to provide you with some examples of reasons why we may cancel your policy and explains how we will treat your premium in the event of cancellation by you or by us. 10 KH