> _Markdown transcription of NZI NZI Professional Indemnity policy wording, effective 2018-06-01. Source: https://www.nzi.co.nz/content/dam/insurance-brands-nz/nzi/nz/en/documents/nzi/liability/nzi-liability-professional-indemnity-pw-nz6520-1-0618.pdf_ --- # NZI Professional Indemnity ## Policy Wording **Wording no: PI 0618** | **Form no: NZ6520/1 06/18** | **Issued: June 2018** --- ## Introduction ### About this policy This Professional Indemnity Policy consists of: - (a) this policy document, and - (b) the schedule, and - (c) any endorsements that have been applied. ### Duty of disclosure The insured has a legal duty of disclosure when they apply for insurance. This means the insured or anyone acting on the insured's behalf must tell us everything they know (or could be reasonably expected to know) that a prudent insurer would want to take into account in deciding: - (a) to accept or decline the insurance, and/or - (b) the cost or terms of the insurance, including the excess. The insured also has this duty every time their insurance renews and when they make any changes to it. If the insured or anyone acting on the insured's behalf breaches this duty, we may treat this policy as being of no effect and to have never existed. Please ask if you are not sure whether you need to tell us about something. ### Defined words If a word is shown in bold, it has a specific meaning. There is a list of these words and what they mean in 'Section 8 – 'Definitions'. ### Headings The headings in this policy document are for reference only and do not form part of it. They must not be used when interpreting the policy document. --- ## 1. Insurance agreement ### 1.1 Our agreement The insured agrees to pay us the premium and comply with this policy. In exchange, and in reliance on the information provided in the application, we agree to provide cover as set out in this policy. --- ## 2. What this policy covers ### 2.1 Civil liability We will cover the **insured** for **civil liability** arising out of a **claim**: - (a) first made against the **insured** and notified to us during the **period of insurance** or within 30 days of its expiry, and - (b) for any actual or alleged act, error, omission or conduct in connection with the **insured's professional services** that happened after the **retroactive date**. ### 2.2 Defence costs In addition to the **limit of indemnity**, we will also cover all reasonable and necessary **defence costs** incurred with our prior written consent, for the investigation, defence, settlement or appeal of a **claim** covered by this policy. --- ## 3. Automatic extensions Subject to the terms of Section 2 – 'What this policy covers', and all the other terms of this policy, the following extensions are included automatically. Some automatic extensions have a specified sub-limit and **excess** and these will apply unless specifically stated otherwise in the **schedule**. Unless specifically stated otherwise, all sub-limits are included in, and are not in addition to, the **limit of indemnity** or the amount payable for **defence costs**, whichever is applicable. ### 3.1 Automatic reinstatement On payment of a **claim** under this policy, the **limit of indemnity** will be reinstated, without additional premium, to the extent of the amount paid in respect of that **claim**, provided that: - (a) the total amount payable by us for any one **claim** will not exceed the **limit of indemnity**, and - (b) in respect of all **claims** in a **period of insurance**, the total amount reinstated will not exceed an amount equal to the **limit of indemnity**. ### 3.2 Consultants and sub-contractors We will cover the **insured** for **civil liability** arising out of the acts, errors, omissions or conduct of any of the **insured's** consultants, contractors, sub-contractors or agents offering services that are the same as the **professional services**. This extension does not extend cover to the consultant, contractor, sub-contractor or agent. ### 3.3 Continuity of cover We will cover the **insured** for **civil liability** arising from a **claim** that would be covered by this policy but for Exclusion 4.14 'Known claims and circumstances', provided that: - (a) we were the **insured's** professional indemnity insurer under a policy ('the former policy') at the time the **insured** should have notified us of the **claim** or circumstance that might give rise to a **claim**, and - (b) we have continued without interruption as the **insured's** professional indemnity insurer from the time the **insured** should have notified us up until such time as the **claim** was made against the **insured** and notified to us, and - (c) our liability is limited to the amount for which we would have been liable at the time referred to in (a) in accordance with the terms and conditions of the former policy, and - (d) our liability will be reduced by the amount that fairly represents the extent to which liability for the **claim** could have been reduced had the circumstances been reported under the former policy. ### 3.4 Court attendance costs We will pay to the **insured**: - (a) $500 per day for any principal, partner or director, - (b) $250 per day for any **employee**, of the **insured**, for each day they are required to attend a court as a witness in connection with a **claim** covered by this policy. The most we will pay under this extension during the **period of insurance** is $20,000. ### 3.5 Defamation We will cover the **insured** for **civil liability** arising from unintentional defamation. Exclusion 4.4 'Defamation' does not apply to this extension. ### 3.6 Disciplinary proceeding costs We will cover the **insured** for: - (a) **defence costs** reasonably and necessarily incurred with our prior written consent, and - (b) all monetary orders or determinations made against the **insured**, in relation to **disciplinary proceedings** first instituted against the **insured** and notified to us during the **period of insurance** or within 30 days of its expiry, provided that: - (a) the act, error, omission or conduct that gave rise to the **disciplinary proceedings** happened after the **retroactive date**, and - (b) the **disciplinary proceedings** do not involve allegations of fraud, dishonesty or criminal conduct, and - (c) we will be entitled to appoint a lawyer to represent the **insured**. An **excess** of $1,000 is payable in respect of this extension. ### 3.7 Dishonesty of employees We will cover the **insured** for **civil liability** arising from a dishonest, fraudulent, criminal or malicious act or omission of an **employee** provided that the **insured**: - (a) maintains a separate trust account for client funds which must be audited annually by a qualified independent auditor or accountant, and - (b) has dual authorisation requirements for all payments or withdrawals from the trust account. There is no cover under this extension for any person committing or condoning any dishonest fraudulent, criminal or malicious act or omission. Exclusion 4.10 'Fraud or dishonesty' does not apply to this extension. ### 3.8 Extended reporting period If we do not offer to renew this policy, then the **insured** may extend cover under this policy for another 12 months. However, the extended policy will only cover **civil liability** arising from any actual or alleged act, error, omission or conduct that happened before the expiry of this policy's **period of insurance** and not any actual or alleged act, error omission or conduct happening in the extended period. If the **insured** elects to extend the policy as described above, notice of such election must be given to us within 30 days of our refusal to renew this policy and the **insured** must pay us an additional premium (being 50% of the last annual premium). This policy cannot be extended if we cancel this policy or declare this policy unenforceable because the **insured** did not: - (a) pay the premium, - (b) disclose information material to the risk, - (c) comply with terms of this policy. This extension does not provide a new **limit of indemnity** for the extended period. ### 3.9 Fair Trading Act We will cover the **insured** for **civil liability** arising from a breach of the Fair Trading Act 1986 (or equivalent legislation in Australia where the jurisdiction specified in the **schedule** includes Australia). Exclusion 4.6 'Fair Trading Act' does not apply to this extension. ### 3.10 Fiduciary duty We will cover the **insured** for **civil liability** arising from a breach of fiduciary duty by the **insured**. ### 3.11 Incoming partners and directors We will cover incoming partners and directors, on the same terms as we cover the **insured** for their **civil liability** arising from an actual or alleged act, error, omission or conduct that occurred while they were acting in their capacity as a sole practitioner, a partner or a director of a company, offering services that are the same as the **professional services**. Cover under this extension will only apply where no other insurance is available. ### 3.12 Intellectual property We will cover the **insured** for **civil liability** arising from an unintentional breach of confidential information or plagiarism or an unintentional infringement of any copyright, design or trademark. Exclusion 4.11 'Intellectual property' (a) to (c) do not apply to this extension. ### 3.13 Joint venture liability We will cover the **insured** for **civil liability** arising from the **insured's** involvement in any joint venture or partnership. There is no cover for the joint venture, the joint venture partners or partnerships. Exclusion 4.13 'Joint venture liability' does not apply to this extension. ### 3.14 Loss of documents We will cover the **insured** for **civil liability** arising out of the loss of, damage to or destruction of any **documents** that were in the custody or control of: - (a) the **insured**, - (b) any other person to whom the **insured** had entrusted, lodged, deposited or delegated custody of the **documents** to in the ordinary course of business. Exclusion 4.15 'Loss of documents' does not apply to this extension. ### 3.15 New subsidiary If during the **period of insurance** the **insured** creates an entity, or acquires more than 50% of the voting rights of another entity, we will automatically cover the new entity: - (a) from the date of acquisition, but only in respect of activities carried out after the date of acquisition, or - (b) from the date it was created, but only if the entity being acquired or created: - (a) performs services of the same type as the **professional services**, and - (b) is not incorporated, domiciled or conducting business outside New Zealand, and - (c) does not have revenue or estimated revenue of more than 25% of the combined gross annual consolidated revenue of the **insured** at the commencement of the **period of insurance**. ### 3.16 Public relations expenses We will cover the **insured** for the reasonable fees, costs, charges and expenses incurred by the **insured** with our prior written consent, to engage a public relations firm in order to minimise the effect of, prevent or limit, any adverse or negative publicity as a result of a **claim**. The most we will pay under this extension during the **period of insurance** is $25,000. --- ## 4. Exclusions ### 4.1 Asbestos This policy does not cover any **claim** arising out of, relating to or in any way connected with asbestos. ### 4.2 Building defects This policy does not cover any **claim** arising from or in connection with a building or structure: - (a) being affected by moisture or water build-up or the penetration of external moisture or water, - (b) being affected by the action or effects of mould, fungi, mildew, rot, decay, gradual deterioration, micro-organisms, bacteria, protozoa, or any similar or like forms, - (c) failing: - (i) to comply with, or perform to, the requirements of any building code or standard, - (ii) to meet any standard of performance, quality, fitness or durability, - (iii) to be fit for its intended purpose. This exclusion does not apply to any **civil liability** that is caused by, or directly arises from the leakage of internal pipes, internal water systems or internal cisterns. ### 4.3 Contractual liability This policy does not cover any **claim** arising from or in connection with any contractual liability, warranty or guarantee assumed or provided by the **insured** except if the **insured** would have been liable in the absence of the contractual liability, warranty or guarantee. ### 4.4 Defamation This policy does not cover any **claim** for defamation. ### 4.5 Director's liability This policy does not cover any **claim** arising from or in connection with any act, error, omission or conduct of a director or officer of any company, while acting in that capacity. ### 4.6 Fair Trading Act This policy does not cover any **claim** arising from or in connection with the Fair Trading Act 1986 or equivalent legislation in any other jurisdiction. ### 4.7 Financial condition This policy does not cover any **claim** arising from or in connection with the insolvency, bankruptcy, receivership, statutory management or liquidation of the **insured**. ### 4.8 Fines and penalties This policy does not cover any: - (a) fine or penalty imposed, whether under contract or statute, - (b) punitive, aggravated, liquidated, or exemplary damages. ### 4.9 Foreign courts This policy does not cover any **claim** arising from or in connection with any legal action or proceedings: - (a) first brought in a court outside of the jurisdiction stated in the **schedule**, - (b) brought in a court within the jurisdiction stated in the **schedule** for the purposes of enforcing a judgment made by a court outside the jurisdiction stated in the **schedule**, - (c) where the proper law to be applied to the issue/s is that of a country outside the jurisdiction stated in the **schedule**. ### 4.10 Fraud or dishonesty This policy does not cover any **claim** arising from or in connection with any actual or alleged dishonest, fraudulent, criminal or malicious act, error, omission or conduct by the **insured**, or any **employee**, principal, officer or director of the **insured** or any other person covered by this policy. ### 4.11 Intellectual property This policy does not cover any **claim** arising from or in connection with: - (a) breach of confidential information, - (b) plagiarism, - (c) infringement of any copyright, design or trademark, - (d) infringement of any patent. ### 4.12 Intentional or reckless acts This policy does not cover any: - (a) wilful or intentional breach of statute, or - (b) actual or alleged act, error, omission or conduct committed or omitted with a reckless disregard for the consequences. ### 4.13 Joint venture liability This policy does not cover any **claim** arising from or in connection with a joint venture or partnership. ### 4.14 Known claims and circumstances This policy does not cover any **claim**: - (a) made or intimated against the **insured** prior to the commencement of the **period of insurance**, - (b) notified under a previous policy, - (c) arising from or in connection with circumstances: - (i) that the **insured** was aware of prior to the **period of insurance**, and - (ii) that a reasonable person in the position of the **insured** would have considered might give rise to a **claim**. ### 4.15 Loss of documents This policy does not cover any **claim** arising from or in connection with the loss of, damage to or destruction of any **documents**. ### 4.16 Nuclear This policy does not cover **claim** arising from or in connection with any atomic energy risks, being operations employing the process of nuclear fission or fusion or handling of radioactive material, which operations include but are not limited to: - (a) the use of nuclear reactors such as atomic piles, particle accelerators or generators or similar devices, - (b) the use, handling or transportation of radioactive materials, - (c) the use, handling or transportation of any weapon of war or explosive device employing nuclear fission or fusion. ### 4.17 Obligations to employees This policy does not cover any **claim** arising from or in connection with any breach of any obligation as an employer. ### 4.18 Pollution This policy does not cover any **claim** arising from or in connection with pollution or contamination. ### 4.19 Product liability This policy does not cover any **claim** arising from or in connection with the sale, supply, installation or manufacture of goods by, or on behalf of, the **insured**. ### 4.20 Property liability This policy does not cover any **claim** arising from or in connection with the ownership, possession or use by, or on behalf of, the **insured** of any land, buildings, aircraft, watercraft or vehicle. ### 4.21 Refund of fees This policy does not cover any **claim** arising from or in connection with a refund of professional fees or charges, by way of damages or otherwise. ### 4.22 Related party claims This policy does not cover any **claim** brought by, or maintained on behalf of, any person, firm, company or entity: - (a) that is entitled to cover under this policy, - (b) that is a **subsidiary** of the **insured**, - (c) that is operated or controlled by any **insured** or any **employee**, partner, **family member**, nominee or trustee of any **insured**, - (d) in which any **insured** or any **family member** has a direct or indirect financial interest (a shareholding of less than 5% in a publicly listed company will not constitute a financial interest), - (e) who at the time of the act, error, omission or conduct that gave rise to the **claim** was a **family member**, - (f) that was advised or induced by the **insured** to invest in or lend money to, the **insured** or to any person, firm, company or entity referred to in any of (a) to (d) above. ### 4.23 Sanctions This policy does not cover any **claim** or provide any cover to the extent such cover would expose us to any sanction, prohibition or restriction under any United Nations resolution, or any trade or economic sanctions, laws or regulations of the European Union, United Kingdom, United States of America, Australia or New Zealand. ### 4.24 Territorial limits This policy does not cover any **claim** arising from or in connection with any act, error, omission or conduct that occurred outside of the territorial limit specified in the **schedule**. ### 4.25 Terrorism This policy does not cover any **claim** for death, injury, illness, loss or damage directly or indirectly caused by, contributed to by, resulting from or arising out of or in connection with any **act of terrorism**, regardless of any other cause or event contributing concurrently or in any other sequence to the loss including in connection with controlling, preventing, suppressing, retaliating against, or responding to an **act of terrorism**. ### 4.26 War This policy does not cover any **claim** for loss or damage directly or indirectly occasioned by, happening through or in consequence of war, invasion, acts of foreign enemies, hostilities (whether war be declared or not) civil war, rebellion, revolution, insurrection, military or usurped power or confiscation or nationalisation or requisition or destruction of or damage to property by or under the order of any government or public or local authority. --- ## 5. Basis of settlement ### 5.1 Maximum amount payable **(a) Civil Liability** Subject to Automatic extension 3.1 'Automatic reinstatement', the most we will pay in total for any one **claim** and all **claims** covered by this policy during the **period of insurance** is the **limit of indemnity**. Where more than one **claim** arises out of the same act, error, omission or conduct or connected or interrelated acts, errors, omissions or conduct then all those **claims** will be treated as one **claim** for the purposes of the application of the **limit of indemnity**. **(b) Defence Costs** The most we will pay for **defence costs** during the **period of insurance** for all **claims** covered by this policy is an amount equal to the **limit of indemnity**. ### 5.2 Excess payable The **excess** applies to any **defence costs** covered under this policy. We will only pay that part of **defence costs** that exceeds the amount of the **excess**. Where more than one **claim** arises out of the same act, error omission or conduct or connected or interrelated acts, errors, omissions or conduct then all of those **claims** will together constitute one **claim** for the purposes of determining the **excess**. --- ## 6. Claims conditions ### The insured's obligations ### 6.1 Advise us of a claim or circumstance If the **insured** becomes aware of any **claim**, or circumstance that may give rise to a **claim** under this policy, regardless of the anticipated amount, they must notify us in writing as soon as possible. Once a circumstance is notified to us in writing, any subsequent **claim** arising from that circumstance is deemed to be a **claim** in the **period of insurance** in which the circumstance was first notified. ### 6.2 Co-operation The **insured** must, at their own cost, provide all information and reasonable assistance to us to determine cover under this policy and to enable us to investigate, defend or settle a **claim**. The **insured** must fully co-operate with any recovery process. ### 6.3 Dishonest or fraudulent statements If the **insured** makes any dishonest or fraudulent statement in connection with a **claim** or any application for cover under this policy, we may: - (a) decline the **claim**, either in whole or in part, and/or - (b) declare either this policy or all insurance the **insured** has with us to be of no effect and to no longer exist from the date of the dishonest or fraudulent statement. ### 6.4 Do not admit liability The **insured** must not: - (a) admit liability, - (b) do or say anything that may prejudice our ability to defend the **claim** against the **insured** or take recovery action in the **insured's** name. ### 6.5 Minimise the claim The **insured** must, at their own cost, take all reasonable steps to minimise a **claim** and avoid any further loss or liability arising. ### 6.6 Obtain our agreement The **insured** must obtain our agreement in writing before: - (a) incurring any **defence costs** or other expenses in connection with any **claim** under this policy, - (b) negotiating, paying, settling, admitting or denying any **claim** against them. ### 6.7 Other insurance The **insured** must notify us as soon as they know of any other insurance policy that may cover or partially cover them for any of the risks covered under this policy. If the **insured** holds other insurance cover with another insurer in respect of any **claim** covered under this policy, then we will only pay under this policy once cover under any other policy has been exhausted. ### 6.8 Waiver of legal privilege The lawyers we instruct to act on behalf of the **insured** in relation to any **claim** against the **insured**, are at liberty to disclose to us any information they receive in that capacity, including information they receive from the **insured**. The **insured** authorises the lawyer to disclose this information to us. ### How we manage a claim ### 6.9 Allocation of defence costs If a **claim** is only partly covered by this policy, we will attempt to ensure fair and proper allocation of the **defence costs** for covered and uninsured portions. If we and the **insured** are unable to agree upon the allocation of the **defence costs** then that allocation will be decided by a lawyer that we and the **insured** agree to instruct, whose determination will be binding. The cost of the lawyer's determination is to be taken as part of the **defence costs** covered under this policy. If we and the **insured** cannot agree on a lawyer, then a lawyer will be appointed by the President of the New Zealand Law Society. ### 6.10 Claim below the excess If we believe that a **claim** will not exceed the **excess**, we may instruct the **insured** to conduct the investigation, defence and settlement at the **insured's** expense. Should the **claim** subsequently exceed the **excess**, we agree to reimburse the reasonable **defence costs** incurred by the **insured** that exceed the **excess** or pay on behalf of the **insured** any additional **defence costs**. ### 6.11 Claim in excess of the limit of indemnity If any payment, settlement or judgment in excess of the **limit of indemnity** has to be made to settle or dispose of any **claim**, our liability for **defence costs** is limited to such proportion as the **limit of indemnity** bears to the amount payable to dispose of the **claim**. The **insured** must refund to us all amounts we pay for **defence costs** in excess of our proportion. ### 6.12 Defence of a claim We have the sole right (which will be a condition precedent to the **insured's** right to be covered) to: - (a) act in the **insured's** name and on the **insured's** behalf to defend, negotiate or settle a **claim** as we see fit, - (b) appoint our own lawyers to defend or legally represent the **insured** and the lawyers will report directly to us. ### 6.13 Discharge of a claim We may elect at any time to pay the **insured**: - (a) the maximum amount payable under this policy in relation to a **claim**, or - (b) any lesser sum that the **claim** against the **insured** can be settled for. Once we have paid this (including any **defence costs** already incurred up to the date of the election), our responsibility to the **insured** under this policy for that **claim** is met in full. ### 6.14 Insured's right to contest settlement of a claim If the **insured** does not agree with a decision by us to settle a **claim**, the **insured** can elect to contest the **claim** at their own expense but our liability will not exceed the amount for which the **claim** could have been settled in the opinion of the lawyer appointed under Condition 6.15 'Requirement to defend a claim'. We will pay **defence costs** incurred up to the date the **insured** notifies us in writing of their election under this clause, and will pay the **insured** (subject to the **excess**) the amount for which the **claim** could have been settled. The **insured** expressly agrees that our liability in respect of such **claim** will then be at an end. ### 6.15 Requirement to defend a claim We will not require the **insured** to defend any legal proceedings in respect of a **claim**, nor will the **insured** require us to defend on its behalf, any legal proceedings in respect of a **claim**, unless a lawyer mutually agreed by us and the **insured** advises such proceedings should be defended. In formulating his or her advice, the lawyer must be instructed to consider the: - (a) damages and costs likely to be recovered, - (b) likely costs of defence of the **claim**, and - (c) the prospects of successfully defending the **claim**. The cost of the lawyer's opinion is to be taken as part of the **defence costs** covered under this policy. If the lawyer advises that the **claim** should be settled and if the terms on which settlement can be achieved are within limits that are reasonable (in the lawyer's opinion, and in consideration of the matters), then the **insured**: - (a) will cooperate with us to effect such settlement in accordance with this policy, and - (b) if applicable, must pay the **excess** shown in the **schedule**. ### 6.16 Severability If a natural person covered under this policy fails to comply with their duty of disclosure, makes a misrepresentation or breaches any condition of this policy, we will not deny cover to any other natural person covered under this policy on these grounds if that other person was unaware of the matter not disclosed or the fact of the misrepresentation or did not breach a policy condition. ### 6.17 Subrogation We may assume the **insured's** legal right of recovery. The proceeds of any recovery will be applied first to the costs of effecting the recovery, then to us for amounts paid for a **claim**. Any remaining balance will be paid to the **insured** for uncovered loss and then the **insured's excess**. We will not exercise any rights of recovery against any **employee** unless the **claim** has been brought about or contributed to by the dishonest, fraudulent, criminal or malicious act or omission of the **employee**. --- ## 7. General conditions ### How we administer this policy ### 7.1 Assignment The **insured** may not assign this policy or any interest under this policy without our prior written consent. ### 7.2 Cancellation **By the insured** The **insured** may cancel this policy at any time by giving us, or their broker notice in writing or by electronic means. If they do, we will refund any premium that is due to the **insured** based on the unused portion of the **period of insurance**. The **insured** must pay any outstanding premium due for the expired portion of the **period of insurance**. **By us** We may cancel this policy by giving the **insured**, or their broker, notice in writing or by electronic means, at the **insured's**, or their broker's, last known address. The policy will be cancelled from 4pm on the 30th day after the date of the notice. We will refund any premium that is due to the **insured** based on the unused portion of the **period of insurance**. ### 7.3 Currency Any amounts shown in this policy or in the **schedule** are in New Zealand dollars, unless otherwise specified in the **schedule**. ### 7.4 Disputes about this policy The law of New Zealand applies to disputes about this policy and the New Zealand Courts have exclusive jurisdiction. ### 7.5 Goods and Services Tax Where GST is recoverable by us under the Goods and Services Tax Act 1985: - (a) the **limit of indemnity** excludes GST, and - (b) all sub limits exclude GST, and - (c) any **excess** includes GST, and - (d) GST will be added, where applicable, to any payments. ### 7.6 Legislation changes Any reference to any Act of Parliament or subordinate rules referred to in this policy includes any amendments made or substitutions to that law. ### The insured's obligations ### 7.7 Change in circumstances The **insured** must tell us as soon as possible if there is a material: - (a) increase in the risk insured, - (b) alteration of the risk insured. Once the **insured** has told us of the change, we may then alter the premium and/or the terms of this policy or cancel this policy. If the **insured** fails to notify us about a change in the risk we may: - (a) declare this policy unenforceable, and/or - (b) decline any subsequent **claim** either in whole or in part. These actions will be taken from the date the **insured** knew, or ought to have known, of the increase or alteration in the risk insured. ### 7.8 Comply with the policy The **insured** (and any other person or entity covered by the policy) must comply with the terms and conditions of this policy. If: - (a) the **insured**, - (b) any other person or entity covered under this policy, - (c) anyone acting on the **insured's** behalf, breaches any of the terms and/or conditions of this policy, we may decline the **claim** either in whole or in part. --- ## 8. Definitions *The definitions apply to the plural and any derivatives of the bolded words.* **act of terrorism** Any act, or preparation in respect of action, or threat of action designed to influence the government de jure or de facto of any nation or any political division thereof, or in pursuit of political, religious, ideological, or similar purposes to intimidate the public or a section of the public of any nation by any person or group(s) of persons whether acting alone or on behalf of or in connection with any organisation(s) or government(s) de jure or de facto, and which: - (a) involves violence against one or more persons, - (b) involves damage to property, - (c) endangers life other than that of the person committing the action, - (d) creates a risk to health or safety of the public or a section of the public, - (e) is designed to interfere with or to disrupt an electronic system. **application** The information provided to us by the **insured** or on the **insured's** behalf when the **insured** purchased this insurance or requested a quotation for this insurance from us. **civil liability** Liability for: - (a) compensatory damages and interest that a civil court or arbitrator orders the **insured** to pay in civil proceedings, - (b) legal costs of a party making the **claim**. It includes settlements negotiated by us, in relation to a **claim**. **claim** - (a) legal or arbitral proceedings instituted and served upon the **insured** seeking compensatory damages, - (b) a threat or intimation that legal or arbitral proceedings will be issued against the **insured** seeking compensatory damages. It does not include proceedings seeking non-monetary relief, including judicial review, injunctions or declarations. **defence costs** Legal costs, expenses and disbursements, witnesses' costs, assessors' or experts' fees. **disciplinary proceedings** Any legal or quasi legal proceeding arising out of or in connection with an actual or alleged breach of professional duty by the **insured** where the proceeding is administered by any statutory registration board, professional body or similar regulatory authority, where such body has jurisdiction to enquire into or adjudicate any such breach. **documents** Deeds, wills, agreements, maps, plans, books, letters, policies, certificates, forms and documents of any nature whatsoever, whether written, printed or reproduced by any method including records or computer records and electronic data material but will not include bearer bonds or coupons, stamps, bank currency, notes or other negotiable instruments. **employee** Any person who is or was employed under a contract of service or apprenticeship by the **insured**. **excess** The amount specified as the 'Excess' in the **schedule** or as specified in any extension. **family member** - (a) any spouse or de facto partner, - (b) any parent, or parent of the spouse or de facto partner, - (c) any sibling or child, of an **insured**. **insured** The person, persons, partnership, entity or entities named on the **schedule**, including: - (a) any predecessor in business, - (b) any **subsidiary**, - (c) any person who is a principal, partner, director or **employee**, - (d) any former principal, partner, director or **employee**, - (e) the estate, heirs, legal representatives or assigns of any principal, partner or director in the event of their death or incapacity but only if such persons observe and are subject to the terms and conditions of this policy. **limit of indemnity** The amount specified as the 'Limit of indemnity' in the **schedule**. **period of insurance** The 'Period of insurance' shown in the **schedule**, that specifies the start and end dates of this insurance policy. **professional services** The activities, advice given or services performed or business of the **insured** as described in the **schedule**. **retroactive date** The 'Retroactive date' shown in the **schedule**. **schedule** The latest version of the 'Schedule' we have issued to the **insured** for this policy. **subsidiary** Any entity that was, or at the beginning of **period of insurance** is, controlled by the **insured** holding more than 50% of the voting rights of that organisation or one in which the **insured** has the ability to control decisions made by the board of directors (whether directly or indirectly). **we / us / our** NZI, a business division of IAG New Zealand Limited.