Intermediaries ades & Services€¦ · Allianz Trades and Services Pack Policy Document. Tr ades & Services 84025 POL063BA/FI COVS 14/11/2003 15:12 Page 2. If this insurance has been

Trades and ServicesIntermediaries

Allianz Trades and Services PackPolicy Document.

Trad

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Ser

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84025 POL063BA/FI COVS 14/11/2003 15:12 Page 2

If this insurance has been issued through aninsurance intermediaryIf Your Policy has been issued through Our agent, or abroker who is acting under an agency arrangementsuch as a binder with Us, then they are acting as Ouragent and not as Your agent.

If Your Policy has been issued by a broker, other than abroker acting under such an agency arrangement withUs, then the broker is acting as Your agent.

Where this Policy has been arranged through anintermediary, a commission is payable by Us to themfor arranging the insurance.


Table of ContentsPage

Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2About Allianz. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2Understanding Your Policy and its important terms and conditions . . . . . . . . . . . . . . . . . . . . . . . 2Applying for cover . . . . . . . . . . . . . . . . . . . . . . . . . 3Cooling off and cancellation rights . . . . . . . . . . . . . . 4Basis on which We insure You. . . . . . . . . . . . . . . . . 4Your Duty of Disclosure . . . . . . . . . . . . . . . . . . . . . 4Privacy Act 1988 – Information . . . . . . . . . . . . . . . 5General Insurance Code of Practice . . . . . . . . . . . . . 7Dispute resolution process –helping You solve any problems. . . . . . . . . . . . . . . . 7Contact for assistance or confirmation of cover . . . . . 8Renewal procedure. . . . . . . . . . . . . . . . . . . . . . . . . 8General definitions . . . . . . . . . . . . . . . . . . . . . . . 8General exclusions applicable toall Sections of this Policy . . . . . . . . . . . . . . . . . 11General conditions applicable toall Sections of this Policy . . . . . . . . . . . . . . . . . 13Section One – General Property . . . . . . . . . . . . 20The cover . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20Definitions applicable to this Section . . . . . . . . . . . 20Defined Events applicable to this Section . . . . . . . . 20Basis of Settlement applicable to this Section . . . . . 21Additional benefit applicable to this Section . . . . . . 22Specific exclusions applicable to this Section. . . . . . 22Specific conditions applicable to this Section. . . . . . 25Section Two – Public and Products Liability . . . 26The cover . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26Definitions applicable to this Section . . . . . . . . . . . 26Limit of Indemnity and Excess applicable to this Section . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30Supplementary payments . . . . . . . . . . . . . . . . . . . 30Specific exclusions applicable to this Section. . . . . . 31Specific conditions applicable to this Section. . . . . . 38

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IntroductionThis document contains information designed to helpYou decide whether to buy Our Trades and ServicesPackage Policy.

About AllianzAllianz Australia Insurance Limited ABN 15 000 122 850is the insurer of the Policy and is one of Australia’slargest general insurers. We utilise years of localexpertise, combined with global experience to offer arange of products and services to Our customers. As amember of the worldwide Allianz Group, We arecommitted to continuous improvement of Our productsand services and strive to achieve this throughknowledge transfer within the Group, dedicatedtechnical research units, sharing globally new productdevelopments and a wide range of risk managementservices.

Understanding Your Policy and its importantterms and conditionsTo properly understand the Policy’s significant features,benefits and risks You need to carefully read:• about each of the available types of cover and

benefits in each of the Sections One and Two (thecover provided under each Section can be affectedby the following);

• the rest of this “Introduction” section – this setsout how You apply for cover, the basis on whichWe insure You, the duty of disclosure You need tomeet before We insure You, Our privacyinformation and Our dispute resolution procedures;

• the “General definitions” section – this sets outwhat We mean by certain words used in the Policy.These words begin with a capital letter throughoutthis document;

• the “General exclusions applicable to all Sections ofthis Policy” section – this sets out the generalexclusions and limits that apply to all covers andbenefits;

• the “General conditions applicable to all Sections ofthis Policy” section – this sets out certain generalrights and obligations that You and We have. If Youdo not meet them We may be able to refuse to paya claim;


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• the Schedule and any endorsements or otherwritten changes to the cover We issue You with –these contain specific details relevant to You andcan affect the cover.

Applying for coverWhen You apply for the Policy by completing aProposal, We or Our representative will confirm withYou:• the covers You require (including the property You

wish to cover, the limits You require for certaincovers (if optional), whether any third parties willbe noted as having an interest, and the Excessesthat You must contribute for certain claims) – Weonly cover You for those Policy Sections andoptional benefits shown as covered on YourSchedule up to the relevant specified limits.The maximum amount We will pay will not exceedthe Sum Insured or the Limit of Indemnity for therelevant Policy Sections shown as insured on YourSchedule.The Policy sets out the cover We provide. You needto decide if the limits, type and level of cover areappropriate for You and will cover Your potentialloss. If they are not, You may be underinsured andhave to bear part of any loss Yourself. You should also read the GST Notice in the“General conditions applicable to all Sections of thisPolicy” section to understand how GST is appliedto a claim.

• whether any standard terms need to be varied (thismay be by way of an endorsement);

• the Period of Insurance;• Your premium – the base premium We charge

varies according to Your risk profile (e.g. location ofrisk, the type of property being insured, the coverrequired, other people being insured and Yourclaims history etc). In some cases discounts mayapply if You meet certain criteria We set. You willalso have to pay any compulsory governmentcharges (e.g. Stamp Duty and GST) and FireServices Levy (where applicable). In some cases aservice fee will apply where You select to pay Yourpremium by instalments.


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We tell You the total amount payable when Youapply and when and how it can be paid. This isconfirmed in the Schedule We issue You with.

If You pay Your premium by instalments, refer tothe “General conditions applicable to all Sections ofthis Policy” section for important details on Yourand Our rights and obligations. Note that aninstalment premium outstanding for 14 days mayresult in Our refusal to pay a claim.

The above details are recorded in the Schedule Weissue to You after cover is entered into.

Cooling off and cancellation rightsYou have cooling off and cancellation rights (see“General conditions applicable to all Sections of thisPolicy” section on page 13 for details).

Basis on which We insure YouWe agree to insure You:• based on the information provided in Your Proposal

and subject to payment of the required premium bythe required date.

• in accordance with the Policy terms and conditions– Your Policy is made up of Your Proposal, thisPolicy Document, the Schedule and any writtenendorsements We issue to You. You should carefullyread all of these as if they are one document andkeep them in a safe place.

If You require further information about the Policy orwish to confirm a transaction, please refer to thecontact details on the back cover.

Your Duty of DisclosureBefore You enter into an insurance contract with Us,the Insurance Contracts Act 1984 requires You toprovide Us with the information We need to enable Usto decide whether and on what terms Your Proposal forinsurance is acceptable and to calculate how muchpremium is required for Your insurance.

The Act imposes a different duty the first time Youenter into the Policy with Us to that which applieswhen You renew, vary, extend, reinstate or replaceYour Policy. We set these two duties out below.


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Your Duty of Disclosure when You enter into thisPolicy with Us for the first time

You will be asked various questions when You firstapply for this Policy. When You answer these questions,You must:• give Us honest and complete answers,• tell Us everything You know, and• tell Us everything that a reasonable person in the

circumstances could be expected to tell Us.

Your Duty of Disclosure when You renew, vary,extend, reinstate or replace Your policy

When You renew, vary, extend, reinstate or replace thepolicy, Your duty is to tell Us before the renewal,variation, extension, reinstatement or replacement ismade, every matter known to You which:• You know, or• a reasonable person in the circumstances could be

expected to know, is relevant to Our decision whether to insure You andwhether any special conditions need to apply to Yourpolicy.

What You do not need to tell Us for either duty

You do not need to tell Us about any matter:• that diminishes Our risk,• that is of common knowledge,• that We know or should know as an insurer, or• that We tell You We do not need to know.

Who do the above two duties apply to?

Everyone who is insured under the Policy must complywith the relevant duty.

What happens if You or they do not comply witheither duty?

If You or they don’t comply with the relevant duty, Wemay cancel the Policy or reduce the amount We pay ifYou make a claim. If fraud is involved, We may treatthe Policy as if it never existed and pay nothing.

Privacy Act 1988 – InformationThe Privacy Act 1988 contains National PrivacyPrinciples which require Us to tell You that as aninsurer We collect, handle, store and disclose Yourpersonal and sensitive information in order to:• decide whether to issue a Policy,• determine the terms and conditions of Your Policy,


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• compile data, and• handle claims.

Sensitive information includes, amongst other things,information about an individual’s health, membershipof professional associations and criminal records. Youhave given Us Your consent to collect Your personaland sensitive information in order to issue You withthis Policy.

We disclose personal information to third parties whoWe deal with in providing Our services to You. Forexample, in handling claims, we may have to discloseYour personal and other information to third partiessuch as other insurers, reinsurers, loss adjusters,external claims data collectors, investigators and agents,or other parties as required by law. We limit the useand disclosure of any personal information providedby Us to them to the specific purpose for which Wesupplied it.

You have the right to seek access to Your personal andsensitive information and to correct it at any time.Allianz Australia aims to ensure that Your personalinformation is accurate, up-to-date and complete. Pleasecontact Us on 1300 360 529 EST 9am-5pm, Mondayto Friday if You would like to seek access to, or reviseYour personal information or feel that the informationWe currently have on record is incorrect or incompleteor believe that the privacy of Your personal informationat Allianz Australia has been interfered with. In thesecases You are entitled to raise Your concerns. Yourcomplaint will be managed and resolved through Ourinternal Privacy Complaint Procedure.

Should You wish to obtain more information aboutAllianz’s privacy policies, please contact Us and ask fora copy of Our booklet called “General InsuranceInformation Privacy Code”.

From time to time We may advise or offer Youinformation on other Allianz products or services thatmay be relevant and of interest to You. If You do notwish to receive these offers or information please callthe Allianz Direct Marketing Privacy Service Line –Freecall 1800 000 284 EST 9am-5pm, Monday toFriday or indicate Your decision in the appropriate areaof the Privacy section of Our website atwww.allianz.com.au.


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General Insurance Code of PracticeThe General Insurance Code of Practice was developedby the Insurance Council of Australia to further raisestandards of practice and service across the insuranceindustry.

We keenly support the standards set out in the Code.

You can obtain more information on the Code ofPractice and how it assists You by contacting Us.Contact details are provided on the back cover of thisPolicy.

Dispute resolution process –helping You solve any problemsComplaints or disputes are not an everyday occurrenceat Allianz. We strive to do things the right way andkeep Our customers happy.

Sometimes though, complaints or disputes do occurand when this happens, Our objective is to resolve anydisagreement as amicably and as quickly as possible.We believe the best way to achieve this is to provideYou with an opportunity for an unbiased review of theissue.

Here’s what to do if a complaint or dispute arises

Regardless of whether the complaint or disputeinvolves Our staff, an agent, loss adjuster, assessor,investigator or the service We provide, simply contactUs on 13 1000, speak to one of Our call centreoperators and provide them with the details of theissue concerning You. They will attempt to resolve thecomplaint or dispute; if they are unable to do so theywill log it and refer it to the appropriate business unitfor resolution.

Within Our organisation We have established acomplaints and disputes resolution process. This is afree service. It is a system designed to log, track,escalate and monitor complaints received from clientsand customers about Our services and products. A staffmember involved in the complaints and disputesresolution process will write to You within 15 workingdays advising the outcome of the review and reasonsfor their decision. We do not consider a complaint ordispute to be resolved until a proposed resolution orsolution has been communicated to You and You haveaccepted the resolution or solution.


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If You are not satisfied with the outcome ofthis processIf We are unable to resolve the complaint or disputeWe will offer You the option of referring the matter tothe insurance industry’s external independentcomplaints scheme, subject to eligibility.

The scheme will only review complaints or disputes ifthey have gone through our internal complaints anddisputes resolution process.

Contact for assistance or confirmation of coverIf You need to confirm any Policy transaction or clarifyany of the information contained in this policydocument or if You have any other queries, please referto the contact details on the back cover.

Renewal procedureBefore Your Policy expires, We will normally offerrenewal by sending a notice advising the amountpayable to renew the Policy. It is important that Youcheck the Sums Insured before renewing each year tosatisfy Yourself that they continue to represent currentfull replacement values, to ensure that You are properlycovered in the event of a major loss.

General definitionsThese definitions apply to and should be read inrelation to each of the Policy Sections unless they aredefined differently in the relevant Section.

“Basis of Settlement” means the method by whicha claim is met. This will be either Replacement orIndemnity according to the method You have selectedin those Sections where a choice is available andspecified in the Schedule, or otherwise as stated in theappropriate Section.

“Business” means the business described in theSchedule, carried on by You or on Your behalf at orfrom the Situation and any trade or occupationincidental to that business.

“Customers’ Goods” means goods and/ormerchandise held by You in trust or on commission.

“Damage(d)” means any physical destruction of ordamage to the Property Insured so as to lessen its valueor any physical loss.


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“Defined Event” means an event shown in theindividual Section (which the Schedule says isoperative) under the heading “Defined Eventsapplicable to this Section”, and for which cover isavailable under that Section only.

“Excess” means either the amount of money specifiedin the Schedule or otherwise stated in the Policy foreach applicable Section that You must contribute as thefirst payment for all claims arising out of one eventspecified in the Schedule or otherwise stated in thePolicy for which no payment will be made by Us.

“Limit of Indemnity” means the amount(s) specifiedin the Schedule as the Sum Insured which will be themaximum amount that We will pay for any one loss orseries of losses arising out of a Defined Event andwhich may be determined after consideration of anyspecial condition or sub-limit contained either in theapplicable Section or as shown as an item in theSchedule. The Limit of Indemnity is inclusive of andnot additional to any applicable Excess.

“Office Contents” means all contents such asfurniture, stationery, computers and communicationsequipment (excluding mobile phones) used in YourBusiness, as stated in the Schedule, whilst at Yourdomestic residence or Situation shown on theSchedule.

“Period of Insurance” means the periodcommencing on the Effective Date and ending at 4pmon the Expiry Date as shown in the Schedule.

“Policy” means this document and any endorsement,specification, attachment or memoranda affixed (orintended to be affixed) to it, the Schedule and theProposal.

“Property Insured” means Office Contents, Stock inTrade and Tools of Trade or Profession limited to theSum Insured stated in the Schedule.

“Proposal” means the application form completed byYou or on Your behalf in which You provided theinformation upon which We relied to enter into thisPolicy.

“Premises” means within the confines of thebuilding(s) at the Situation.

“Rewriting of Business Records” means the costof restoration of computer records, documents,


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manuscripts, securities, deeds, specifications, plans,drawings, designs, business books and other records ofevery description.

“Schedule” means the most recently dated scheduleto the Policy We have provided to You which specifiesimportant information such as the Policy number,Situation and Sections that are in force, the details ofthe Property Insured and the Sums Insured.

“Situation” means the situation stated in theSchedule.

“Stock in Trade” means:

a. stock in trade, merchandise or raw materials,including the value of work done, containers andpackaging materials;

b. Customers’ Goods and items held in trust or oncommission;

as stated in the Schedule.

“Sum Insured” means the relevant amount shown inthe Schedule as the sum insured.

“Territorial Limits” means anywhere within theCommonwealth of Australia.

“Tools of Trade or Profession” means thoseimplements or appliances used in the Business at worksites for the purpose of the Business or located at thePremises at the Situation specified in the Scheduleother than construction plant and other vehicles ortrailers all belonging to You or for which You are liable.

“We”, “Us”, “Our”, “Allianz” means AllianzAustralia Insurance Limited ABN 15 000 122 850 of2 Market Street, Sydney, NSW, 2000.

“You”, “Your”, “Yours” means either the person orthe entity named as The Insured in the Schedule.


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General exclusionsapplicable to all Sections ofthis Policy1. The Policy does not cover loss, destruction, liability,

or Damage:

a. Warcaused by, contributed to by or arising from anywar, whether war be declared or not, hostilitiesor rebellion, civil war, revolution, insurrection,military or usurped power, invasion, act offoreign enemy;

b. Nuclearcaused by, contributed to by or arising fromionising radiation or contamination byradioactivity from:

(i) any nuclear fuel or from any nuclear waste,or

(ii) the combustion of nuclear fuel (includingany self-sustaining process of nuclearfission), or

(iii) nuclear weapons material;

c. Lawful seizurecaused by, contributed to by or arising from thelawful seizure, detention, confiscation,nationalisation or requisition of the PropertyInsured;

d. Wilful actscaused by, contributed to by or arising from anyactual or alleged:

(i) dishonest, fraudulent, criminal or maliciousact,

(ii) wilful breach of any statute, contract or duty,

(iii) conduct intended to cause loss or Damageor with reckless disregard for theconsequences,

carried out by You or any person acting withYour knowledge, consent or connivance;

e. Territorial limitsoccurring outside the Territorial Limits exceptas specifically stated otherwise in theappropriate Section.


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2. Except as specifically provided otherwise, thisPolicy does not cover:

a. consequential loss of any kind;

b. legal liability to pay compensation or damages;

c. Damage caused by faults or defects known toYou or any employee whose knowledge in lawwould be deemed to be Yours and not disclosedto Us at the time this Policy was entered into.

3. This Policy does not cover loss or Damage to anyappliance, machinery, equipment or other propertywhich is a computer or which contains orcomprises any computer technology (includingcomputer chip or control logic) and which fails toperform or function in the precise manner forwhich it was designed for any reason arising fromthe performance or functionality of such computertechnology (including computer chip or controllogic).


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General conditionsapplicable to all Sectionsof this Policy1. Cooling off and cancellation rights under

the Policya. You may cancel and return this Policy at any

time by notifying Us in writing;

b. We have the right to cancel this Policy wherepermitted by law. For example, We can cancel:• if You failed to comply with Your Duty of

Disclosure, or• where You have made a misrepresentation

to Us during negotiations prior to the issueof this Policy, or

• where You have failed to comply with aprovision of Your Policy, including the termrelating to payment of premium, or

• where You have made a fraudulent claimunder Your Policy or under some othercontract of insurance that provides coverduring the same period of time that OurPolicy covers You, or

• where We agree to accept payment ofpremium by periodic instalment and at leastone instalment remains unpaid in excess ofone month from the date on which it wasdue and payable;

c. If You or We cancel the Policy We may deducta pro rata proportion of the premium for timeon risk, reasonable administrative costs relatedto the acquisition and termination of the Policyand any government taxes or duties We cannotrecover;

d. In the event that You have made a claim underthis Policy and We have agreed to pay the fullSum Insured for Your Property Insured noreturn of premium will be made for any unusedportion of the premium for the Sections underwhich the full Sum Insured has been paid.

2. Claims preparation expensesWe will pay for costs necessarily and reasonablyincurred for the preparation of a valid claim underthis Policy. The most We will pay is $10,000 in


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total or 25% of the amount otherwise payable,whichever is the lesser.

3. Actions of parties other than the insuredThe acts or omissions of:a. a tenant of Yours; orb. the owner of, or another tenant in, the

building; which breach any provision of this Policy will notaffect Your entitlement to cover provided that:(i) the act or omission was committed without

Your prior knowledge or complicity, and(ii) You notify Us of the happening or existence of

the act or omission as soon as You becomeaware of it, and

(iii) You pay any reasonable extra premium whichWe require.

4. GST NoticeThis Policy has a GST provision in relation topremium and Our payment to You for claims.It may have an impact on how You determine theamount of insurance You need. Please read itcarefully. Seek professional advice if You have anyqueries about GST and Your insurance.

Sums Insured

All monetary limits in this Policy may be increasedfor GST in some circumstances (see below).

Claim settlements – Where We agree to pay

• When We calculate the amount We will payYou, We will have regard to the items below:Where You are liable to pay an amount for GSTin respect of an acquisition relevant to Yourclaim (such as services to repair a Damageditem insured under the Policy) We will pay theGST amount.We will pay the GST amount in addition to theSum Insured or Limit of Indemnity or otherlimits shown in the Policy or in the Schedule.If Your Sum Insured or Limit of Liability is notsufficient to cover Your loss, We will only paythe GST amount that relates to Our settlementof Your claim.We will reduce the GST amount We pay for bythe amount of any input tax credits to whichYou are or would be entitled.


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• Where We make a payment under this Policy ascompensation instead of payment for a relevantacquisition, We will reduce the amount of thepayment by the amount of any input tax creditthat You would have been entitled to had thepayment been applied to a relevant acquisition.

• Where the Policy insures business interruption,We will (where relevant) pay You on Your claimby reference to the GST exclusive amount ofany supply made by Your Business that isrelevant to Your claim.

Disclosure – Input Tax Credit entitlementIf You register, or are registered, for GST You arerequired to tell Us Your entitlement to an input taxcredit on Your premium. If You fail to disclose orYou understate Your entitlement, You may be liablefor GST on a claim We may pay. This Policy doesnot cover You for this GST liability, or for any fine,penalty or charge for which You may be liable.

5. Interests of other partiesa. The insurable interest of only those lessors,

financiers, trustees, mortgagees, owners and allother parties having a legal interest or chargeover the Property Insured and who arespecifically noted in Your records shall beautomatically included as third partybeneficiaries without notification orspecification. The nature and extent of suchinterest is to be disclosed to Us in the event ofDamage. Any other persons not in this categoryor not named on the Schedule are not coveredand cannot make a claim. All third partybeneficiaries must comply with the terms andconditions of the Policy.

b. Where the protection provided by this Policycovers the interest of more than one party, anyact or omission of an individual party will notprejudice the rights of the remaining parties:

(i) subject to the general exclusion d. Wilfulacts, and

(ii) provided the remaining parties must,immediately on becoming aware of any actor omission that increases the risk of loss,Damage or liability, give notice in writing toUs and on demand pay any reasonableadditional premium We may require.


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6. Governing law and jurisdictionThis Policy is governed by the laws of Australia.Any dispute relating to this Policy shall besubmitted to the exclusive jurisdiction of anAustralian Court within the State or Territory inwhich the Policy was issued.

7. Your representative – authorisationBy entering into this Policy, You agree that theperson representing You when completing theProposal is authorised to give and receiveinformation on Your behalf in relation to all mattersarising under this Policy and in accordance with theInsurance Contracts Act 1984.

If you do not meet the following conditions We may beentitled to cancel the Policy and/or reduce or refuse topay a claim.

8. Reasonable care and maintenanceYou must take all reasonable care:

a. to prevent loss, Damage or legal liability;

b. to maintain the Property Insured and Premisesin sound condition, in particular to minimise oravoid theft, loss, Damage or liability;

c. to comply with all statutory obligations, by-laws, regulations, public authority requirementsand safety requirements;

d. to minimise any loss or Damage;

e. to only employ competent employees andensure they adhere to the requirementsspecified in a. – d. above.

9. Non payment of premium by instalments –right to refuse a claimWhen You pay Your premium by instalments, Youmust ensure that they are paid on time because ifan instalment has remained unpaid for a period ofat least 14 days, We may refuse to pay a claim. Wewill notify You if an instalment has not been paid.

10.Alteration to riskIf You become aware of any changes to the facts orcircumstances which existed when this insurancecommenced that change the nature of the risk (forexample, the nature of Your Business or othercircumstances that affect the Situation or PropertyInsured) in a way that would increase the risk ofloss or Damage You must notify Us in writing.


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If We agree to the change We will do so in writingand You must pay Us any additional premium Werequire.

11.Waiver of subrogation rightsWe may not be liable to pay any benefits under thisPolicy for loss, Damage or liability if You agree orhave agreed to limit or exclude any right ofrecovery against any third party who would beliable to compensate You with respect to that loss,Damage or liability.

12.Other insuranceYou must give Us written notice of any insuranceor insurances already effected or which may besubsequently effected covering, whether in wholeor in part, the subject matter of the various Sectionsof this Policy.

13.Claims procedurea. As soon as You become aware of anything

happening which may result in a claim underthis Policy You must, at Your own expense:

(i) immediately inform the police of anymalicious Damage, theft, attempted theftor loss of property,

(ii) advise Us as soon as possible, telling Ushow the loss, Damage, or liability occurred,

(iii) take all reasonable action to recover lost orstolen property and minimise the claim,

(iv) as far as possible preserve any products,appliances, plant or other items whichmight prove necessary or useful asevidence until We have had anopportunity for inspection,

(v) give Us all the information, proof andassistance We may require to prosecute,defend or settle Your claim includingdetails of any other insurance effected byYou or on Your behalf,

(vi) as soon as is reasonably practicable afterthe loss or Damage (or any further timewhich We may allow in writing) deliver toUs a written claim containing as detailedan account as is reasonably practicable ofthe circumstances surrounding the loss orDamage and the amount claimed. If Weask You to provide Us with a StatutoryDeclaration You must provide it,


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(vii) immediately send Us any claim, writ,summons, or full details of other relevantlegal or other proceedings such as animpending prosecution or inquest Youreceive or become aware of,

(viii) at all times give Us all the information andassistance We may reasonably require.

b. You MUST NOT:

(i) admit liability for, or offer, or agree to settleany claim without Our written consent,

(ii) authorise the repair or replacement ofanything without Our prior written consentunless for safety reasons or to minimise orprevent further imminent loss, Damage,liability or Injury.

c. After You have advised Us of any loss orDamage as set out in this General Condition:

(i) You must comply with all the terms of thegeneral conditions before We will meet anyclaim under this Policy,

(ii) We have the right to recover from anyperson against whom You may be able toclaim any money paid by Us and We willhave full discretion in the conduct,settlement or defence of any claim in Yourname. The amount recovered will beapplied first to reducing the amount bywhich Your loss exceeds the payment madeby Us plus any Excess applied.

Any balance remaining after You have beenfully compensated for Your loss, up to theamount We have paid to You to settle Yourclaim (including Our legal fees forrecovery), will be retained by Us,

(iii) We may take over and conduct, in Yourname, the defence or settlement of anyclaim and We will have full discretion in theconduct of any proceedings in connectionwith the claim,

(iv) We may pay You the Sum Insured or Limitof Indemnity under the applicable Sectionor any lesser amount for which a claim orclaims under that Section may reasonablybe settled. After We have paid You, We willno longer be liable for the claim(s) (or


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future conduct of the claim(s)) except forcosts and expenses incurred up until thetime We agreed to pay,

(v) If You recover or find any lost or stolenProperty Insured for which We have paid aclaim, You must:• tell Us immediately, and• give Us the recovered or found Insured

Property if We request You to do so.

d. If You advise Us of loss or Damage to PropertyInsured, as set out in this General Condition:

(i) We may, or anybody We appoint may:

a. take or keep possession of the PropertyInsured for the purposes of Ourinvestigations; and

b. if We accept liability for the loss, sellsuch Property Insured or dispose of it ina reasonable manner;

but You are not entitled to abandon suchProperty Insured to Us. If We enter, take orkeep possession of the Property Insured itwill not be an admission of liability nor willit affect any of Your obligations under thisPolicy,

(ii) if We elect or become bound to reinstate orreplace any Property Insured, You must atYour own expense produce and give Us allsuch plans, documents, books andinformation as We may reasonably require,

(iii) We will not be bound to reinstate exactly orcompletely, but only in a reasonable mannerin all the circumstances. In no case will Webe bound to pay, in respect of any of theProperty Insured, more than the SumInsured or Limit of Indemnity.


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Section One –General PropertyThe coverWe will pay You in accordance with the Basis ofSettlement if any of the Property Insured shown in theSchedule under this Section is Damaged by a DefinedEvent which occurred during the Period of Insurance.

Definitions applicable to this Section“Money” means current coin, bank notes, currencynotes, cheques, credit card sales/service vouchers,postal orders, money orders, negotiable and non-negotiable securities and valuable documents, theunused value of postage stamps, revenue stamps,instant lottery tickets, metropolitan transport tickets,phone cards, credit cards, stored-value cards, travellerscheques and the contents of franking machines.

“Obsolete” means any item which has beensuperseded by a new model, where the originalspecifications are no longer in production or available.

“Present Value” means the value at the time of lossor Damage to reinstate or repair the Property Insured,subject to an allowance for wear, tear or depreciation,or improvement.

Defined Events applicable to this SectionPart A – Accidental damage

Any sudden or unexpected or unforeseen occurrencenot otherwise excluded.

Part B – Restricted cover

If the Schedule shows You have selected “RestrictedCover” under this Section, the Defined Events underthis Section will be limited to:

1. fire (whether resulting from explosion orotherwise);

2. collision and/or overturning of the conveyingvehicle; and

3. flood.


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Basis of Settlement applicable to this SectionThe Basis of Settlement will be:

Replacement

Where Replacement is shown in the Schedule We willat Our option pay the cost of repairing or replacing theProperty Insured to a condition equal to, but not betterthan the condition of the Property Insured when it wasnew.

Provided that, until a sum equal to the cost of repair orreplacement is actually spent, Our liability is limited tothe Present Value of the Property Insured lost,Damaged or destroyed.

Indemnity

Where Indemnity is shown in the Schedule, We will atOur option:

a. pay to You the actual value of the DamagedProperty Insured up to the Sum Insured; or

b. pay to You the cost of replacing the DamagedProperty Insured; or

c. pay to You the cost of repairing the DamagedProperty Insured; or

d. repair or replace the damaged Property Insured;and

We may deduct a reasonable allowance fordepreciation, age, wear and tear before making anypayment.

Notwithstanding which Basis of Settlement You haveselected We will not pay more than:

a. the Present Value for Obsolete Property Insured orStock in Trade;

b. the Present Value for computer equipment that ismore than five (5) years old;

c. $2,000 for any one item insured under“Unspecified items of Tools of Trade or Profession”;

d. the Sum Insured, shown in the Schedule for eachitem, for specified items;

e. the Sum Insured shown for each item in theSchedule for any one event.


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Excess

We will not pay the first $250 of any loss arising out ofany one event, or the amount shown in the Scheduleas the Excess for this Section, whichever amount is thegreater.

Additional benefit applicable to this SectionRewriting of Business Records

Consequent upon a claim being admitted for loss orDamage to Office Contents following a Defined Eventoccurring, We will, subject to the extent that the SumInsured on Office Contents is not otherwise exhausted,pay the cost of repairing, replacing, or restoring YourBusiness Records, including the information containedon or in them, but excluding the value to You of thatinformation. If repair, replacement, reproduction orrestoration is not required, We will only pay thereplacement cost of the materials as blank stationerycalculated at the time and place of the Damage,provided that replacement will have been carried outwith reasonable despatch.

Specific exclusions applicable to this Section We will not pay for:

1. Damage to Property Insured outside the TerritorialLimits.

2 loss or Damage to Stock in Trade which has beenpermanently transferred to the site, commencingfrom the time the Stock in Trade would be deemedto be insured under any other form of ContractWorks Insurance Policy covering the contract onwhich You are working.

3. Damage caused by or arising directly or indirectlyout of or in any way connected with:

a. spontaneous combustion, fermentation, heatingor any process involving the direct applicationof heat, deterioration and putrefaction ofrefrigerated goods;

b. action of the sea, tidal wave or tsunami;

c. theft other than theft resulting from forcible andviolent entry evidenced by visible Damage to:

(i) the securely locked portion of any building,or


23

(ii) the securely locked vehicle containing theProperty Insured, or

(iii) a locked container secured to a vehicle.

When you have selected “Restricted Cover”under this Section, We will not pay for Damagecaused by theft;

d. theft of property in the open air;

e. fraud or dishonest acts, embezzlement, forgery,erasure, counterfeiting and fraudulentmisappropriation by electronic means orotherwise;

f. (i) unexplained inventory shortages ordisappearances, or

(ii) shortages in the supply of materials to orfrom You,

(iii) loss induced by deception;

g. loading or unloading, delivery or dispatch;

h. demolition;

i. testing, intentional overloading or experiments;

j. any process of heat treatment, welding,grinding, cutting, drilling, shaping or theapplication of tools to the Property Insured;

k. Damaged or faulty doors, lids, catches, latches,locks or any door lid closing or securingmechanism or device;

l. faulty packing, storage, inherent defect ordisease;

m. mechanical, hydraulic, electrical or electronicbreakdown, failure, malfunction orderangement of any machine or electrical orelectronic device or temperature controllingequipment;

n. moths, termites or other insects, vermin, rust oroxidation, mildew, mould, contamination orpollution, wet or dry rot, corrosion, change ofcolour, dampness, variations in temperature,evaporation, disease, inherent vice, latentdefect, change in flavour, texture or finish, orsmut or smoke from industrial operations;

o. wear and tear, fading, scratching or marring,chipping or denting, gradual deterioration,developing flaws, normal up keeping or makinggood.


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3. Damage caused to:

a. motor vehicles, caravans, trailers, motorcycles,watercraft, aircraft or aerial devices or theaccessories to any of these;

b. Property Insured during the course of and asthe result of its processing;

c. Property Insured in the course of construction,erection, renovation or demolition;

d. (i) Money,

(ii) glass or items of a brittle nature,

Provided that where the Property Insured isStock in Trade and Damage results fromeither fire, theft, or where in transit and theStock in Trade is adequately packed andsecured, caused by collision, overturning orjack-knifing of the conveying vehicle, thisexclusion 3.d.(ii) will not apply,

(iii) jewellery, furs, bullion, precious metals orprecious stones,

(iv) curios or works of art,

(v) mobile phones, photographic equipment,computer equipment unless specified in theSchedule,

(vi) any guns, sporting equipment or musicalinstruments while they are in use;

e. Property Insured in the open air caused bywind, rainwater or hail unless such property isdesigned to function without the protection ofwalls or roofs;

f. Property Insured should it be lost or Damagedduring use or recovery whilst in useunderground, underwater or within inaccessiblelocations;

g. livestock, animals, birds or fish;

h. standing timber, growing crops and pastures;

i. land;

j. Property Insured due to the stopping of work intotal or in part, or the interruption or retardingof any process or operation as a result of strikes,labour disturbances or locked out workers.


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Specific conditions applicable to this SectionReinstatement of Sum Insured

In the event of Damage insured under this Section ofthe Policy the amount by which the Sum Insured orLimit of Indemnity is reduced in consequence of theloss or Damage will be automatically reinstated as fromthe date of loss or Damage provided that:

a. there is no written request from You or writtennotice by Us to the contrary;

b. this Section is an operative Section of the Policy;and

c. You pay the premium which We require for thereinstatement.

Provided further, however, that notwithstanding theamount of the loss or Damage the automaticreinstatement will be made once during the Period ofInsurance. Any subsequent reinstatement or variationof this Section will only be considered on request andon such terms that may be mutually agreed upon.

Alarm condition

If a security alarm system is installed in the Premises orto the vehicle conveying the Property Insured thefollowing conditions apply:

a. the security alarm system must be well maintainedand in good working condition at all times;

b. the security alarm system must be made operativewhenever the Premises are left unoccupied orwhen the conveying vehicle is left unattended;

c. if the security alarm system relies upon eitherelectricity or communication services to operate inthe correct manner, electricity and communicationservices must be connected to the security alarmand operational at all times unless the power supplyhas failed due to unforeseen circumstances beyondYour control.

We will not be liable for Damage if You do not complywith these conditions.


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Section Two – Public andProducts LiabilityThe coverThis Policy insures all amounts which You becomelegally liable to pay as compensation (excludingpunitive, exemplary and aggravated damages) forPersonal Injury and/or Property Damage occurringwithin the Territorial Limits as a result of anOccurrence in connection with Your Business, up tothe Limit of Indemnity stated in the Schedule.

Definitions applicable to this Section“Aircraft” means any vessel, craft or device made orintended to fly or move in or through the atmosphereor space.

“Employment Practices” means any wrongful orunfair dismissal, denial of natural justice, defamation,misleading representation or advertising, sexualharassment or discrimination in respect of employmentby You.

“Hovercraft” means any vessel, craft or device madeor intended to float on or in or travel on or through theatmosphere or water on a cushion of air provided by adownward blast.

“Incidental Contracts” means:

a. any written rental agreement or lease of realproperty which does not impose on You:

(i) an obligation to insure such property, or

(ii) any liability regardless of fault;

b. any written contract with any public authority forthe supply of water, gas or electricity but only tothe extent of indemnifying any such authority inrespect of liability arising out of Your Business andexcepting contracts for the performance of work orprovision of services by You.

“Medical Persons” means legally qualified medicalpractitioners, legally qualified, enrolled and registerednurses, dentists and first aid attendants.

“Occurrence” means an event including continuousor repeated exposure to substantially the same generalconditions which results in Personal Injury or Property


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Damage neither expected nor intended by You. Alloccurrences of a series consequent upon or attributableto one source or originating cause are deemed to beone Occurrence.

“Personal Injury” means:

a. death, bodily injury, sickness, disease, disability,shock, fright, mental anguish and mental injury;

b. (i) false arrest, wrongful detention orimprisonment, malicious prosecution,

(ii) wrongful eviction,

(iii) assault or battery,

(iv) libel, slander, defamation of character orinvasion of right of privacy,

which occurs during the Period of Insurance.

In the event of Personal Injury Claims arising fromlatent injury, latent disease, latent sickness or latentdisability, such injury, disease, sickness or disability inrespect of each claim shall be deemed to have occurredon the day such injury, disease, sickness or disabilitywas first medically diagnosed.

“Pollutants” means any solid, liquid, gaseous orthermal irritant or contaminant, including but notlimited to smoke, vapour, soot, fumes, acids, alkalis,chemicals or waste. Waste includes material to berecycled, reconditioned or reclaimed.

“Property Damage” means:

a. physical Damage to, physical loss of or physicaldestruction of tangible property that occurs duringthe Period of Insurance including any resultant lossof use; or

b. loss of use of tangible property that has not beenphysically Damaged, physically lost or physicallydestroyed provided such loss of use is caused byphysical Damage to, physical loss of or physicaldestruction of other tangible property that occursduring the Period of Insurance.

“Territorial Limits” means:

a. anywhere within Australia or its external territories;

b. elsewhere in the world but only in respect of:

(i) travelling executives or salesmen who arenormally resident in Australia,


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(ii) Your Products exported to anywhere in theworld except the United States of America orCanada or any country, territory or protectorateto which the laws of the United States ofAmerica or Canada apply.

“Tool of Trade” means a Vehicle which has any toolor plant forming part of or attached to or used inconnection with it while such tool or plant is inoperation for the purpose of the Business, but does notinclude:

a. Vehicles while in transit to or from or within anyplace of work; or

b. Vehicles used for transport or haulage.

“Underground services” means, but is not limitedto, any underground property or structure made orintended to store, convey, transport, transmit, deliverelectricity, water, sewage, gas, fuel, telecommunicationsmedia, signals, radio and other waves.

“Vehicle” means any type of machine on wheels or onself laid tracks made or intended to be propelled byother than manual or animal power and any trailer orother attachment made or intended to be drawn by anysuch machine.

“Watercraft” means any vessel, craft or thing (otherthan a Hovercraft) made or intended to float on or in ortravel on or through water.

“Worker” means any person employed by You ordeemed to be employed by You pursuant to any law.

“Workers’ Compensation Law” means any lawrelating to compensation for injury to Workers oremployees.

“You”, “Your”, “Yours” means:

a. the Insured shown in the Schedule;

b. any subsidiary companies of a. (above), existing atthe commencement date of the Period of Insuranceas shown in the Schedule, whose place ofincorporation is within Australia or its externalterritories;

c. (i) any company acquired by, and whoseoperations are controlled and managed by, theInsured shown in the Schedule or a companyreferred to in b. (above) during the Period ofInsurance as a result of consolidation, merger orpurchase,


29

(ii) any subsidiary company that is incorporated bythe Insured shown in the Schedule or by acompany referred to in b. (above), during thePeriod of Insurance;

Provided that:

(i) any such acquisition or incorporation is notifiedto Us within 90 days,

(ii) the newly acquired or incorporated companyconducts the same type of business as YourBusiness, and

(iii) the newly acquired or incorporated company isincorporated within Australia or its externalterritories;

d. (i) any director, executive officer, employee orpartner of the Insured shown in the Schedule ora company referred to in b. or c. (above), butonly while acting within the scope of theirduties in such capacity, and

(ii) any shareholder of a company referred to in a.,b. or c. (above), but only while acting withinthe scope of their capacity as shareholders ofsuch company;

e. any principal in respect of the liability of suchprincipal arising out of the performance by theInsured shown in the Schedule or a companyreferred to in b. or c. (above), of any contract oragreement for the performance of work for suchprincipal but only to the extent required by suchcontract or agreement, and limited always to theextent of cover and Limit of Indemnity provided inthis Policy;

f. any office bearer or member of a social and/orsporting club formed with the consent of any of theparties in a., b., c. or d. (above).

“Your Products” means anything (after it has ceasedto be in Your physical possession or under Your control)manufactured or deemed to have been manufactured,constructed, grown, extracted, produced, processed,assembled, erected, installed, repaired, serviced,treated, sold, supplied (including services) ordistributed by You including any container (other thana Vehicle).


30

Limit of Indemnity and Excess applicable tothis SectionThe Limit of Indemnity is the amount stated in theSchedule. This is the maximum amount We will pay inrespect of any one Occurrence provided that, for alllegal liability directly or indirectly arising out of YourProducts, Our total aggregate liability during any onePeriod of Insurance will not exceed the limit ofIndemnity.

You must pay the amount shown in the Schedule asthe Excess in respect of each claim for PropertyDamage.

Supplementary paymentsSubject to the provisos below, in addition to the Limitof Indemnity, We will also make the followingsupplementary payments:

a. all charges, expenses and legal costs incurred by Usand/or by You with Our prior written consent inthe investigation, reporting, settlement or defenceof any claim or suit for compensation for which:

(i) You are entitled to cover under this Policy, or

(ii) You would be entitled to cover under thisPolicy if such claim or suit were to besustained;

b. all legal costs taxed against You in any such suit,claim and all interest on the judgment or settlementamount accruing after the entry of judgementagainst You until We have paid, tendered ordeposited in court such part of the judgement asdoes not exceed the Limit of Indemnity;

c. all expenses incurred by You for providing first aidto others for Personal Injury for which You arecovered by this Policy (other than medical expensesprohibited by law);

Provided that:

(i) if a payment exceeding the Limit of Indemnity hasbeen made or is required to be made to dispose of aclaim, Our liability to make supplementarypayments will be limited to the proportion of thesupplementary payments as the Limit of Indemnitybears to the amount paid or required to be paid todispose of the claim. Where the application of this


31

clause means that You are liable to repaysupplementary payments to Us, We may set off theamount that You owe Us against any otherentitlements You have under this Policy,

(ii) supplementary payments in connection with claimsmade and/or actions instituted against You withinthe United States of America or Canada or claimsand actions to which the laws of the United Statesof America or Canada apply will form part of theLimit of Indemnity and not be additional to it.

Specific exclusions applicable to this SectionThis Policy does not cover any liability:

1. Aircraft, Hovercraftarising directly or indirectly out of or in any wayconnected with:

a. the ownership, possession, maintenance, repair,operation or use by You or on Your behalf;

b. any of Your Products which are incorporatedinto the structure, machinery or controls;

of any Aircraft or Hovercraft.

2. AsbestosNotwithstanding any provision to the contrarywithin this Policy or any endorsement thereto, it isagreed that this Policy shall not apply to and doesnot cover any actual or alleged liability whatsoeverfor any claim or claims in respect of loss or lossesdirectly or indirectly arising out of, resulting fromor in consequence of, or in any way involvingasbestos, or any materials containing asbestos inwhatever form or quantity.

3. Assault and batteryarising directly or indirectly out of or in any wayconnected with assault and/or battery committedby You or at Your direction.

This Exclusion 3. will not apply when such assaultand/or battery is committed for the purpose ofpreventing Personal Injury or Property Damage oreliminating danger.

4. Contractual liabilityassumed under any contract or agreement.

This Exclusion 4. does not apply to:

a. liability that would have been implied by law inthe absence of such contract or agreement;


32

b. liability assumed by You under a warranty offitness or quality regarding Your Products;

c. those written contracts shown in the Schedule;

d. liability assumed under Incidental Contracts.

5. Defamation, libel and slanderarising directly or indirectly out of or in any wayconnected with, the publication or utterance of anylibellous, slanderous, defamatory or disparagingmaterial:

a. made prior to the commencement of the Periodof Insurance;

b. made at Your direction or with Your authorityand with knowledge of its falsity; or

c. related to advertising, broadcasting, telecastingor publishing activities conducted by You or onYour behalf.

6. Defect in designarising directly or indirectly out of or in any wayconnected with, any defective design or error inspecification or formula in any of Your Products.

7. Employer’s liabilitya. for Personal Injury to any Worker,

if You are required by law to insure orotherwise fund, whether through self insurance,statutory fund or other statutory scheme, all orpart of any common law liability (whetherlimited or not) for such Personal Injury; or

b. imposed by:

(i) any Workers’ Compensation Law;

(ii) the provisions of any industrial award oragreement or determination or any contractof employment or workplace agreementwhere such liability would not have beenimposed in the absence of such industrialaward, agreement or determination;

(iii) any law relating to Employment Practices.

8. Erections, alterations and additionsarising directly or indirectly out of or in any wayconnected with, the construction, erection,alteration, demolition of and/or addition toBuildings which are owned and/or occupied byYou or on Your behalf.


33

This Exclusion 8. will not apply to alteration of oraddition to Buildings owned and/or occupied byYou where the cost of such alterations or additionsdoes not exceed $500,000.

9. Faulty workmanshiparising directly or indirectly out of or in any wayconnected with, performing, completing, correctingor improving any work or service undertaken orprovided by You or on Your behalf.

10.Loss of usefor loss of the use of tangible property (not havingbeen physically damaged or destroyed) arisingdirectly or indirectly out of or in any wayconnected with:

a. a delay in or lack of performance by You or onYour behalf in relation to any contract oragreement; or

b. the failure of Your Products to meet the level ofperformance, quality, fitness or durabilityexpressly or impliedly warranted or representedby You.

This Exclusion 10.b. does not apply to the lossof use of other tangible property resulting fromthe sudden and accidental physical damage toor destruction of Your Products after suchproducts have been put to use by any person ororganisation other than You.

11.More specific Policyfor which Indemnity is provided, or would havebeen provided but for any applicable deductible orExcess, under a more specific Policy shown as suchin the Schedule.

12.Participationfor Personal Injury to any person or PropertyDamage to the property of any person arisingdirectly or indirectly out of or in any wayconnected with, the actual Participation of suchperson in any sport exercise or activity such as butnot limited to aerobics, athletics, football, aquatic,aerial or equestrian activity.

The term Participation as used in this exclusionincludes the participation, training or practice for,supervision or control of such activities.


34

This Exclusion 12. does not apply to PersonalInjury or Property Damage, caused by any fault ordefect in equipment provided by You at anylocation owned and/or occupied by You for thepurpose of Your Business.

13.Penalties, liquidated damages, punitive,exemplary and/or aggravated damagesfor fines or penalties imposed by law or liquidateddamages or punitive, exemplary and/or aggravateddamages.

14.Pollutionarising directly or indirectly out of or in any wayconnected with:

a. the actual, alleged or threatened discharge,dispersal, release or escape of Pollutants;

This Exclusion 14.a. will not apply to liabilityfor Personal Injury or Property Damage wheresuch discharge, dispersal, release or escape iscaused by a sudden, identifiable, unintendedand unexpected happening which takes place inits entirety at a specific time and place;

b. testing, monitoring, clean-up, removal,containment, treatment, detoxifying orneutralising of Pollutants whether or not any ofthe foregoing are or should be performed byYou or by others;

c. the actual, alleged or threatened discharge,dispersal, release or escape of Pollutants causedby any of Your Products that have beendiscarded, dumped, abandoned or thrown awayby others; or

d. the actual, alleged or threatened discharge,dispersal, release or escape of Pollutants in theUnited States of America or Canada or in anycountry to which the laws of the United Statesof America or Canada apply.

15.Product defectfor Property Damage to Your Products if suchdamage arises directly or indirectly out of or is inany way connected with:

a. any defect in them or their harmful nature;

b. their unsuitability for the purpose for whichthey were intended; or


35

c. their inherent vice or inefficiency orineffectiveness.

16.Product recallarising directly or indirectly out of or in any wayconnected with, the removal, withdrawal, recall,inspection, repair, reconditioning, replacement orloss of use of Your Products or any property ofwhich such Products form a part if they arewithdrawn from the market or from use because ofany known or suspected defect or deficiency inthem.

17.Professional liabilityarising directly or indirectly out of or in any wayconnected with the provision by You or anyone onYour behalf to provide professional advice or anyerror or omission connected therewith.

This Exclusion 17. does not apply to the renderingof or failure to render medical advice by MedicalPersons employed by You to provide first aid andother medical services on Your Premises, other thanwhere Your Business involves the provision ofprofessional medical services or advice (whichincludes dental and veterinary services and advice)and the provision or sale of medication or othermedical equipment, prosthetics, aids or devices ofany description.

18.Property in physical or legal controlfor Property Damage to:

a. property owned by or leased or rented to You;

b. property in Your physical or legal control.

However, this exclusion 18. will not apply toliability for Property Damage to:

(i) buildings which are leased or rented to You;

(ii) buildings, including their contents, not owned,leased or rented to You but temporarilyoccupied by You for the purpose of carryingout work in connection with Your Business,but We will not pay for damage to that part ofthe property on which You are or have beenworking which arises out of such work;

(iii) Vehicles (not belonging to or used by You oron Your behalf) in Your physical or legal controlwhere such Property Damage occurs while anysuch Vehicles are in a car park which is not


36

owned or operated for reward by You as part ofYour Business;

(iv) property belonging to visitors or Youremployees; or

(v) property in Your physical or legal control(except while undergoing any process or beingworked upon) for which You have not assumedany responsibility to obtain insurance.

Our liability under this proviso (v) will belimited to $20,000 in the aggregate in respectof any one Period of Insurance, unless a higheramount is shown in the Schedule, and will besubject to the Excess shown in the Schedule.

19.Smokingfor any Personal Injury arising directly or indirectlyout of or in any way connected with, the inhalationor ingestion of or exposure to:

a. tobacco or tobacco smoke; or

b. any ingredient or additive present in anyarticles, items or goods which contain orinclude tobacco.

20.Vehiclesarising directly or indirectly out of or in any wayconnected with, the ownership, possession,operation, use or legal control by You or on Yourbehalf of any Vehicle:

a. which is registered or is required under anylegislation to be registered;

This Exclusion 20.a. will not apply to:

(i) liability for Personal Injury or Property Damagearising beyond the limits of any carriageway orthoroughfare or caused by the loading orunloading of any Vehicle or trailer,

(ii) liability for Personal Injury and/or PropertyDamage arising from the use of any vehicle as aTool of Trade;

Provided that Our liability under this clausea.(ii) is limited to $250,000, unless a higheramount is shown in the Schedule, in respect ofProperty Damage occurring to UndergroundServices, their containers and fittings and anyconsequential loss arising therefrom, caused by


37

any mechanical digging, scraping, grading, orlevelling apparatus affixed to or forming part ofany Vehicle.

We will not be liable for any claim for damageto Underground Services and/or their contents,nor any consequential loss arising therefrom,unless, prior to the commencement of work,You have inquired with the relevant authorities,or owners of such services, as to the exactlocation of such Underground Services, tracedtheir existence and indicated their location in-situ.

You will be liable for the first $1,000 or suchother amount as may be shown in theSchedule, for each and every claim for damageto Underground Services;

b. where such liability is required by virtue of anylegislation to be insured under a policy of bodilyinjury insurance required by law.

21.Watercraftarising directly or indirectly out of or in any wayconnected with:

a. the ownership, possession, operation or use byYou or on Your behalf; or

b. any of Your Products which are incorporatedinto the structure, machinery or control;

of any Watercraft, the hull of which exceeds 8metres in length.

22.Welding and allied processesarising directly or indirectly out of or in any wayconnected with, You or other persons working onYour behalf not having complied with theAustralian Standard 1674.1-1997 “Safety inwelding and allied processes - Fire precautions” asset out in the Standard or as amended wheninvolved in welding, thermal or oxygen cutting orheating or other related heat producing or sparkproducing operations.

23.Demolitionarising directly or indirectly out of or in any wayconnected with the demolition of any building orstructure by You or on Your behalf where thebuilding or structure exceeds 3.5 metres in height.


38

24.Excavationarising directly or indirectly out of or in any wayconnected with excavation works by You or onYour behalf where the depth of such excavationexceeds 3.5 metres in depth.

25.Tree fellingarising directly or indirectly out of or in any wayconnected with tree felling, or lopping by You or onYour behalf where the tree exceeds 3.5 metres inheight.

26.Weakening of support arising directly or indirectly out of or in any wayconnected with vibration, underpinning,dewatering or removal or weakening of and/orinterference with support to land, buildings or anyother property.

Specific conditions applicable to this Section1. Cross liability

Where You are comprised of more than one entity,the term “You” will be considered as applying toeach entity in the same manner as though a separatePolicy had been issued to each entity, provided thatOur Limit of Indemnity and liability to makesupplementary payments will apply as though therewere not separate policies issued to each entity.

2. Discharge of liabilitiesWe may at any time pay to You or on Your behalf inrespect of all claims against You:

a. the amount of the Limit of Indemnity (afterdeduction of any sum or sums already paid byUs); or

b. any lesser sum for which the claim or claimsmay be settled.

Upon such payment We will relinquish conduct orcontrol of the defence of all claims against You andbe under no further liability under this Policy inconnection with such claim or claims.

Provided that We will pay for costs, charges andexpenses recoverable from You in respect of theperiod prior to the date of such payment (whetheror not this is pursuant to an order madesubsequently) or incurred by Us or by You with Ourwritten consent prior to the date of such payment.


39

3. Premium adjustmentIf the premium for this Policy has been calculatedon the basis of any estimates given by You, Youmust keep accurate records containing all relevantparticulars supporting those estimates and at anyreasonable time allow Us to inspect such records.

Following the expiry of each Period of InsuranceYou must supply Us with such records as We mayreasonably require so that the premium for thatperiod may be calculated. Subject to any minimumpremium applicable, the difference must be paid byor will be allowed to You as the case may be.

4. Reasonable care and maintenanceYou must:

a. take reasonable precautions to prevent themanufacture, sale or supply of defectiveproducts;

b. at Your expense, take reasonable action totrace, recall or modify any products containingany defect or deficiency which defect ordeficiency You have knowledge of or havereason to suspect.

If You do not meet the above condition, Wemay cancel the policy and/or reduce or refuseto pay a claim.


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For all enquiries please callYour Insurance Intermediary.

Allianz Australia Insurance LimitedABN 15 000 122 850Registered Office:2 Market Street, Sydney NSW 2000.Telephone: 13 2664


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