> _Markdown transcription of Vero Vero Combined Broadform / Employers / Statutory Liability policy wording, effective 2024-07-01. Source: https://www.vero.co.nz/documents/business/vero-combined-broadform-liability-07-24.pdf_ --- # Combined Broadform, Employers and Statutory Liability ## Policy Wording --- ## Introduction ### Insurance contract In consideration of you having paid or promised to pay the required premium we agree to indemnify you in the manner and to the extent set out in the applicable parts of this policy. The insurance contract consists of any statements on which this insurance is based, your proposal, the applicable parts of this policy, and the schedule. --- ## General obligations These are the general obligations that apply to all parts of this policy. In addition, there are specific obligations, conditions, memoranda or warranties set out in the different sections of this policy. You must comply with all the obligations, memoranda, conditions or warranties of this policy. If you do not in some instances your claim will not be paid. Some parts of this policy may cover other people or companies or entities as well as you. To gain the benefit of any cover under this policy they must meet all the same conditions and obligations you are required to meet. ### To disclose material information You must advise us of all material information before inception of the policy and before each renewal or variation of the policy. Failure to do so entitles us to avoid the policy. Material information includes any information which might influence the decision we make as to whether or not to provide insurance and if so on what terms and at what premium. ### If circumstances change 1. You must notify us immediately of any change in circumstances that has happened after the start of this policy or that you know is going to happen and which may increase: (a) the amount of the risk; or (b) the risk of loss or liability; or (c) the risk of insuring you. 2. If you do notify us of a change we may alter the premium and/or the terms of this contract. 3. If you do not comply with this obligation any loss or liability that happens after the date of the change in circumstance may not then be insured and we may not continue to insure you. ### To provide accurate information You must make sure all statements made to us are in every respect correct and complete. ### To avoid loss, damage, or liability If you are insured with us then you must take all reasonable care at all times to avoid any loss, damage or personal injury for which you could be held legally liable. You must not intentionally or recklessly cause loss or damage to any property for which you could be held legally liable. You must not allow anyone else to cause loss, damage or personal injury, or do anything for which you could be held legally liable. You must comply with all legal requirements imposed by any government or public authority for the safety of people or property. You must comply at your expense with all reasonable recommendations we give you to prevent loss, damage or personal injury for which you could be held legally liable. --- ## Claims conditions ### What you need to know about making a claim These general claim conditions apply to all parts of this policy. In addition, there may be specific claim conditions set out in the different sections of this policy. As soon as you are aware of any event, circumstance or occurrence that is likely to result in a claim under this policy: You must: (a) notify us immediately; (b) take prompt steps to minimise the loss, damage, personal injury or liability and avoid any further loss, damage, personal injury or liability; and (c) take reasonable steps to obtain details of any other person, property or vehicle involved and any witnesses. You must not: (a) start any repairs without our permission unless it is necessary to prevent further loss or liability; (b) admit responsibility for any loss or liability; or (c) make or give any admission (of fault or fact), offer, promise, payment or indemnity or say or do anything that prejudices our ability to defend, negotiate or settle any claim made against you or make recovery for the loss from any other person who may be responsible for it; whether or not any such action or statement is ultimately relied upon in determining any issue of liability. ### If you wish to make a claim on this policy You must then: 1. fully complete our claim form as soon as practical; 2. give us free access to examine and assess any loss or liability; 3. provide any other information or assistance we reasonably request in relation to your claim. 4. forward any letter of demand or court documents to us immediately; 5. if we request it provide a statutory declaration to verify the loss or liability; 6. if we request it attend interviews with any person we nominate; and 7. unless we are deducting it from any claim settlement to you be responsible for the payment of the excess to us. ### After you have made a claim After you have made a claim on this policy we have the sole right to act in your name and on your behalf to negotiate, defend or settle any action against you. If we do this it will be at our expense, except in relation to any excess that applies. ### After your claim is accepted After we have paid a claim or accepted liability for a claim on this policy either in whole or in part we have the right to take over in full any legal right of recovery or indemnity that you have. If we do this we may exercise these rights for our own benefit at our own expense and you must co-operate with us in all respects to allow us to do anything reasonably necessary to enforce that right. If you do not co-operate with us you must repay any amounts we have paid to you or any other party in respect of your claim. You must not voluntarily and knowingly release any third party from liability arising from loss or damage insured by this policy unless first declared to and accepted by us. If any person is ordered to make or otherwise makes reparation to you for loss or damage to any property for which we have paid a claim under this policy you must reimburse us for that payment as soon as any reparation is made, subject to adjustment if you have not been fully indemnified. ### If you don't agree with our claim decision If you do not agree with our decision on your claim then you should ring your adviser, your agent or your broker. If you are still not satisfied and believe our decision is incorrect you can ring our Head Office on 0800 800 134 or write to us at Private Bag 92 120 Auckland. --- ## General exclusions These are the general exclusions that apply to all parts of this policy. In addition, there are specific exclusions set out in the different sections of this policy. There is no cover under this policy for any claim, loss, damage, liability, death, disablement, injury, illness, any increased or additional costs or expenses of a claim or any other form of cover otherwise available under this policy resulting from or directly or indirectly arising out of, contributed to, by, or in connection with: ### 1. Communicable disease (a) communicable disease; or (b) fear or threat (whether actual or perceived) of communicable disease; or (c) actions taken by any person, entity or public authority to respond to, control, prevent or suppress communicable disease; regardless of any other cause or event contributing concurrently or in any other sequence to it. "Communicable Disease" means: (a) any disease (whether human, animal, plant or otherwise) which can be transmitted directly or indirectly from any organism to another organism by means of any substance or agent (including without limitation any virus, bacterium, parasite or other organism or any variation thereof, whether living or not), where the disease, substance or agent can cause or threaten: (i) damage to human health or welfare; or (ii) damage to, deterioration of, loss of value of, marketability of or loss of use of property; or (b) any Infectious Disease or Quarantinable Disease as defined in or declared under the Health Act 1956. A reference to the Health Act 1956 includes any amendment, replacement or successor legislation. A reference to Infectious Disease or Quarantinable Disease shall have the meaning found in any replacement definition or of any equivalent or substantially similar term defined in or declared under any amendment, replacement or successor legislation. ### 2. Computer systems any loss of, alteration of, or damage to or a reduction in the functionality, availability or operation of a computer system. (a) Subject to the other terms, conditions and exclusions of this policy, this exclusion shall not apply to physical loss or physical damage to insured property and interruption or interference to the insured business directly resulting therefrom. (b) Provided that, clause (a) does not apply where such damage or interruption or interference is directly or indirectly caused by, contributed to by, resulting from, arising out of, or in connection with: (i) Cyber Act; or (ii) any action taken in controlling, preventing, suppressing or remediating any Cyber Act. ### 3. Confiscation confiscation, requisition, destruction of, or damage to property by order of any Government or Local Authority unless it is to prevent or control loss or damage that would otherwise have been covered by this policy. ### 4. Data (a) total or partial destruction, distortion, erasure, corruption, alteration, misinterpretation or misappropriation of data; (b) error in creating, amending, entering, deleting or using data; (c) total or partial inability or failure to receive, send, access or use data for any time or at all; (d) any loss of use, reduction in functionality, repair, replacement, restoration or reproduction of any data; or (e) the value of any data; from any cause whatsoever, regardless of any other contributing cause or event whenever it may occur. ### 5. Radioactivity nuclear weapons material, ionising radiations or contamination from any nuclear fuel or from any nuclear waste which results from the combustion (including self sustaining process of nuclear fission) of nuclear fuel. ### 6. Terrorism any act of terrorism regardless of any other cause or event contributing concurrently or in any other sequence to such loss, damage, liability, death, injury, illness, cost or expense or action taken in controlling, preventing, suppressing or in any way relating to any act of terrorism. ### 7. Unlawful to insure any act, event or occurrence deemed to be unlawful to insure against. ### 8. War war, invasion, act of foreign enemy, hostilities or warlike operations (whether war is declared or not), civil war, civil commotion assuming the proportions of or amounting to a popular rising, military rising, mutiny, rebellion, revolution, insurrection, military or usurped power. --- ## General conditions These general conditions apply to all parts of this policy. In addition, there are specific conditions set out in the different sections of this policy. ### 1. Breach of condition If you or any insured under this policy breaches any condition in this policy all benefits under this policy will be forfeited. However, nothing in this policy affects our common law rights, including our right to avoid the policy for non-disclosure. ### 2. Cancellation by us We may cancel this policy at any time by sending a letter, facsimile or e-mail to you at your last postal address, facsimile number or e-mail address on our records. The cancellation will take effect at 4 pm on the 14th day after the letter, facsimile or e-mail has been sent. In the event of such cancellation we will refund to you a pro rata proportion of the premium (subject to any adjustment required by the terms of this policy). ### 3. Cancellation by you You may cancel this policy at any time, and with immediate effect, by written notice delivered to us or by facsimile transmission or e-mail. In the event of such cancellation, we will be entitled to a pro rata proportion of the premium (subject to any adjustment required by the terms of this policy) for the time during which the policy has been in force. ### 4. Change of terms In the following circumstances, we may change the terms of this policy (including the excess) during the period of insurance: (a) we are no longer able to obtain or retain full reinsurance protection from natural disaster events covered by this policy on terms acceptable to us; or (b) in response to a material change to relevant law; or (c) to increase cover or add new cover; or (d) to allow for a material change in the risk profile of a group of similar policy holders (or similar insured property) that will not be commercially sustainable for us under current policy terms. We may change the terms by sending a letter, facsimile, or e-mail advising you of this to you at your last known postal address, facsimile number, or e-mail address, or to your insurance adviser. The change or changes will take effect at 4.00pm on the 30th day after the communication has been sent. If you are not happy with the change of terms, you may terminate the policy on 14 days' notice. We will refund any unused premium. ### 5. Correctness of statements and fraud All statements made by you or on your behalf either in the application or otherwise in support of this policy or any claim must be correct in all respects. If any claim under this policy is supported by any incorrect information or statement or is in any respect fraudulent, then your claim is not payable and the entire policy automatically terminates from the date that the incorrect statement or fraudulent claim was made to us. ### 6. Goods and services tax Provided that goods and services tax (GST) is recoverable by us, the sum or sums insured by this policy are exclusive of GST to the extent that, in the event of a claim, we will pay a maximum of the sum insured plus additional GST to a maximum of the current rate of GST applied to that sum insured. ### 7. Headings Where headings or margin references are used in this policy they are purely descriptive in nature and are not to be used for interpretative purposes. ### 8. Instalment premiums Where we have agreed to accept payment of premium by instalments: (a) in the event of a claim being made against the policy we reserve the right to require immediate payment of the balance of any annual premium; and (b) all benefits under this policy will be forfeited from the date the first unpaid instalment was due and your policy automatically cancelled if any premium instalment remains unpaid for 28 days. Where any instalment is overdue but the policy has not been cancelled, all benefits under this policy will be suspended from the date the first unpaid instalment was due until the date we receive all the overdue premiums. ### 9. Joint insurance Except in respect of the Employers Liability and the Statutory Liability sections of this policy if there is more than one insured named in the schedule this policy insures the insureds jointly. This means that if one of you does or fails to do anything so that there is no cover there will be no cover for any of you, not just the person or entity responsible. ### 10. New Zealand law This policy is governed by New Zealand law and New Zealand courts have exclusive jurisdiction over any legal proceedings about it. When this policy mentions an Act of New Zealand Parliament, this includes any substitution, amendment, or replacement of the Act. If the Act has been repealed and there is no substitution or replacement, we mean any part of an Act with substantially the same purpose and function. It includes the regulations under the Act. ### 11. Observance of terms and conditions The due observance and fulfilment of the terms and conditions of this policy by you in so far as they relate to anything to be done or complied with by you, and the correctness of any statements made to us (whether made by you or not), are conditions precedent to any liability we may have to provide any indemnity under this policy. ### 12. Other insurance If, at the time of any claim arising under this policy, there is any other valid and collectable insurance covering all or part of the same loss or liability this policy will apply only to the amount of any loss or liability in excess of that recoverable under the other insurance. ### 13. Recovery apportionment If in exercising our rights of subrogation, we recover all or any part of a loss for which a claim has been paid or is payable under this policy the amount of the recovery will be shared between you and us in the following manner: (a) Excluding the excess applicable, you will be fully reimbursed for any uninsured portion of the loss. (b) The remaining amount after the application of (a) above will be shared between you and us in the ratio of their respective losses; the loss to you being that portion of the loss which is uninsured by reason of the excess, and the loss to us being the amount of our actual payment under this policy. The expenses of all of the recovery effort will be borne in the ratio of the respective recoveries. If no recovery is made then the costs will be for our account. Notwithstanding anything in the excess clause, no account will be taken of any subrogated recoveries in establishing the amount of the adjusted loss to which the excess applies. ### 14. Renewal terms If we intend to refuse renewal of this policy, or to offer renewal on any terms less favourable to you or your insurance broker than those applying during the current period of insurance, we must give you or your broker notice of that intention not less than 15 days before the expiry of the current period of insurance. If the notice is not received by that time, we will, if so required by you or your insurance broker, extend the current period of insurance so that it will expire not less than 15 days after the notice provided. You undertake to pay a pro rata proportion of the annual premium for the period of any such extension. ### 15. Sanctions This policy will not provide cover, service, or benefit, or pay anything in connection with your policy, including any premium refund, if doing so may breach or risk exposure to any of the following. 1. Penalties, sanctions, prohibitions, proscriptions, preventions, or restrictions under United Nations resolutions. 2. Sanctions, proscriptions, preventions, laws or regulations of New Zealand, Australia, the United Kingdom, the United States of America, or the European Union. ### 16. Terms, exclusions and conditions In all cases "The Indemnity" in each section is subject to all the terms, exclusions and conditions of the relevant section, and all the general obligations, general exclusions and general conditions of this policy. --- ## Broadform liability ### The indemnity We will indemnify you for all amounts you become legally liable to pay as direct compensation consequent upon: (a) personal injury; or (b) damage to property; happening within the geographical limits during the period of insurance as a result of an occurrence in connection with the business. ### Limit of indemnity The total amount payable by us for all amounts in respect of: (a) one occurrence or series of occurrences as a result of or attributable to one source or original cause; (b) any one period of insurance for all claims in respect of products; and (c) any one period of insurance for all claims in respect of releases (including discharge, dispersal, seepage, migration and escape) of pollutants; will not exceed the limit of indemnity shown in the schedule irrespective of the number of parties entitled to indemnity under this broadform liability section. For the purposes of establishing the total amount payable by us for one period of insurance, it is understood that any releases of pollutants as a result of or attributable to one source or original cause (regardless of whether the release is continuous or intermittent) will be considered as one release. If we accept a claim under this broadform liability section we will pay, in addition to the applicable limit of indemnity, defence costs for any actual or threatened legal action against any of the persons insured. ### Automatic extensions These automatic extensions form part of this broadform liability section and are subject to all its provisions (unless otherwise stated). The total of all payments made under these automatic extensions will be part of and not in addition to the applicable policy limit of indemnity unless otherwise stated. If there is any conflict or inconsistency between this broadform liability section and the extension, only the extension will apply. If there is any conflict or inconsistency between the extensions, only the more particular extension will apply. #### 1. Business Advice or Service We will cover you for your legal liability in respect of personal injury or damage to property arising out of errors or omissions in: 1. advice or services rendered by you without charge or fee; 2. product training and demonstrations by you without charge or fee; 3. medical advice by persons employed by you to provide first aid and other medical services on the insured's premises. Exclusion 13 (Professional duty) does not apply to this extension. #### 2. Compensation for court appearance We will provide payment at the rate of $250 per day for each day on which any of the persons insured attend as a witness in connection with a claim brought under the broadform liability section of this policy. The total amount payable under this extension will not exceed $7,500 in any one period of insurance. #### 3. Defamation We will cover you for your legal liability for defamation or invasion of right of privacy, excluding claims arising out of defamation: (a) when the first publication was made before the commencement of the period of insurance; or (b) made at the direction of any of the persons insured with knowledge of its falsity; or (c) made in the course of or relating to: (i) advertising, broadcasting or telecasting activities; (ii) activities using the internet, intranet or the world wide web; (iii) publication of newspapers, journals, books, or periodicals; conducted by or on behalf of any of the persons insured. #### 4. Employees personal effects Notwithstanding exclusion 5 (Employees and Accident Compensation Act) of this broadform liability section we will cover you for your legal liability to pay direct compensation as a result of damage to the personal effects of your employees. #### 5. Exemplary damages We will cover you for your legal liability for exemplary damages awarded by any New Zealand court in respect of personal injury happening in New Zealand, provided that: (a) our liability to pay under this extension for any one period of insurance will not exceed the lesser of the limit of indemnity or $1 million, inclusive of any defence costs; (b) there is no cover in respect of exemplary damages arising out of any dishonest or malicious act or omission by any of the persons insured; and (c) none of the persons insured has revealed the existence of terms of this cover without our written consent, unless legally obliged to do so. #### 6. Fire risk work away We will cover you for your legal liability to pay direct compensation for personal injury or damage to property in respect of the application of heat involving a naked flame or open heat source that takes place away from your premises providing the following precautions have been complied with on each occasion: (a) the area of the work will be cleared of combustible material for a safe distance from or beneath the place where such work is being carried out. A safe distance will be not less than six metres when welding or cutting operations are carried out. Where such precautions are impracticable such material will be covered with fireproof blankets or similar protective equipment. Combustible parts of premises will be similarly protected; (b) a fire extinguisher of a type and capacity suitable for the combustible material and the premises will be kept immediately adjacent to the area of work and available for immediate use; (c) equipment will be lit or switched on for as short a time as possible before use and extinguished immediately after use; (d) lighted or heated equipment will not be left unattended; (e) a thorough examination for any signs of combustion will be made within or below the area in which work has been undertaken half an hour after the termination of each period of work; (f) before applying heat to metal built into or projecting through walls, floors or ceilings an examination will be made to ensure that the other end of the metal is not in hazardous proximity to combustible material. #### 7. Goods on hook We will cover you for your legal liability to pay direct compensation for damage to property not owned by you arising out of being lifted or lowered or moved by cranes or fork hoists under your care, custody or control. We will pay the costs incurred for the necessary repair or replacement of property on a crane's hook or a fork hoist. This extension will not pay for consequential loss. The limit of our liability in respect of any one period of insurance will not exceed $500,000. An excess of $2,500 will apply under this extension for each occurrence. #### 8. Indemnity to landlord Notwithstanding exclusion 9 (Liability under Agreement) of this broadform liability section we will cover you for your legal liability under a lease agreement to indemnify your lessor against third party actions, suits or demands to pay direct compensation as a result of personal injury or damage to property. #### 9. Innkeeper's Act We will cover you for your legal liability as an innkeeper as regulated by the Innkeepers Act 1962 (or any replacement Act) and any subsequent amendments. Provided that property specifically entrusted to any of the persons insured as an innkeeper must be kept in a locked safe or strongroom. Our liability under this extension will not exceed the lesser of the limit of indemnity of this broadform liability section of the policy or $250,000 unless an alternative limit is shown in the schedule. #### 10. Landlord's liability We will cover you for your legal liability to pay direct compensation as a result of personal injury or damage to property arising in connection with your legal ownership, but not physical occupation, of any premises. #### 11. Lost keys and access control devices We will cover you for your legal liability to pay direct compensation for damage to property arising out of loss of keys or access control devices under your care, custody or control. We will pay the costs incurred for the necessary replacement or alteration of the locks at third party premises. This extension will not pay for consequential loss. The limit of our liability in respect of any one period of insurance will not exceed $500,000. An excess of $1,000 will apply under this extension for each occurrence. #### 12. Mechanical plant and machinery We will cover you for your legal liability to pay direct compensation as a result of personal injury or damage to property arising in connection with any tool of trade or item of mechanically propelled plant or item of machinery that is being operated as such, independent of any vehicle whether or not it is attached to a vehicle, and not operated solely as a vehicle. Exclusion 16 (Vehicles) does not apply to this extension. #### 13. Motor and watercraft repair We will cover you for your legal liability caused by or arising out of the repair, renovation, maintenance, installation or servicing by any of the persons insured of any: (a) vehicle; (b) watercraft not exceeding 10 metres in length; (c) internal combustion engines; or (d) accessories or fittings of either of the above; where such items are or have been in the care, custody or control of, but are not owned, hired, leased, rented or borrowed by, any of the persons insured. However, cover is not provided for your legal liability to pay the cost of performing, completing, correcting or improving any work done or undertaken or rectifying defective work. This exclusion will not apply to legal liability for resultant damage to other separate property or parts that any of the persons insured have not been working on. Our liability to cover you under this extension: (a) for the item under repair, renovation, installation or servicing will not exceed for any one occurrence $500,000 unless an alternative limit is shown in the schedule for motor and watercraft repair; and (b) in total under this extension will not exceed the limit of indemnity applicable to this broadform liability section. An excess of $1,000 will apply under this extension for each occurrence unless an alternative amount is shown in the schedule. We will not cover you under this extension for your legal liability for personal injury or damage to property that occurs while any vehicle or watercraft is being driven, sailed or navigated by any of the persons insured who: (a) does not have a valid licence that authorises them to drive the vehicle at the time of the accident; (b) at the time of the accident giving rise to a claim under this extension is under the influence of intoxicating liquor or a drug or who has a proportion of alcohol in their blood or breath that is higher than that allowed under New Zealand traffic law; or (c) fails to stop or leaves the scene of the accident when it is an offence to do so or refuses to undergo a breath test or provide a blood sample having been lawfully requested to do so. Exclusions 14 (Property in care, custody or control) and 16 (Vehicles) do not apply to this extension. #### 14. Product recall We will contribute to those costs you are legally liable to pay for physically recalling or withdrawing products that have already given rise to a claim covered by the broadform liability section of this policy, if we agree that such recall or withdrawal is necessary to prevent similar claim arising. Our contribution will be limited to 80% of the costs in excess of the first $2,500. Subject to a maximum contribution by us of $100,000 in respect of all such costs incurred in respect of all such recalls or withdrawals in any one period of insurance unless an alternative limit is shown in the schedule. #### 15. Property in care, custody or control We will cover you for your legal liability to pay direct compensation as a result of damage to property held in trust by or in the care, custody or control of any of the persons insured. However we will not be liable under this extension for damage to property: (a) in respect of which and to the extent that any of the persons insured has agreed to provide insurance; (b) owned, leased, rented or hired by any of the persons insured or under any hire purchase or conditional agreement; (c) being land or buildings including their fixtures and fittings; (d) being vehicles or watercraft held for service or repair; or (e) being property in storage and in the care, custody or control of any of the persons insured while they store the property as a bailee for reward. (f) being property covered under the Goods on hook automatic extension and the 'Lost keys and access devices' automatic extension. Our liability under this extension will not exceed $500,000 in any one period of insurance unless an alternative limit is shown in the schedule. An excess of $1,000 will apply under this extension for each occurrence unless an alternative amount is shown in the schedule. Exclusion 14 (Property in care, custody or control) does not apply to this extension. #### 16. Reparation Notwithstanding exclusion 6 (Fines and penalties) of this broadform liability section, we will cover you for your legal liability to pay an award of reparation in respect of personal injury or damage to property happening within the geographical limits during the period of insurance as a result of an occurrence in connection with the business. Provided that: (a) you notify us immediately if you or any other person entitled to cover under this broadform liability section for liability to pay reparation is charged with any offence in connection with the business which has resulted in personal injury to another person or damage to property; (b) you do not make any offer of reparation (including as part of any case management conference or sentencing hearing) without our written approval. Our liability for Sentencing Act reparation claims will not exceed the limit of indemnity shown in the schedule or $10,000,000, whichever is the lesser, irrespective of the number of parties entitled to indemnity under this policy. Cover for defence costs does not apply to a claim under this extension. We will not pay defence costs in relation to an offence or where your liability is to pay reparation. This extension does not cover reparation arising from prosecution of an offence under the Health and Safety at Work Act 2015 (or any replacement Act) and any subsequent amendments. #### 17. Tenant's liability Notwithstanding exclusion 14 (Property in care, custody or control) of this broadform liability section we will cover you for your legal liability to pay direct compensation as a result of damage to premises (including their fixtures and fittings) leased or rented by you or in your custody or control but not owned by you, or for damage to property in business premises that you temporarily occupy, but excluding legal liability arising in connection with the failure of you or the persons insured to arrange insurance on the property. #### 18. Vibration or weakening of support Notwithstanding exclusion 17 (Vibration or weakening of support) of this broadform liability section we will cover you for all amounts that you become legally liable to pay as direct compensation as a result of personal injury or damage to property caused by vibration or the withdrawal or weakening of support of any structure or land. Our liability under this extension will not exceed $500,000 in any one period of insurance unless an alternative limit is shown in the schedule. An excess of $5,000 will apply to claims under this extension for each occurrence unless an alternative amount is shown in the schedule. --- ### Exclusions Refer also to the general exclusions of this policy. We will not be under any obligation to indemnify you or any other insured under this broadform liability section for legal liability for personal injury or damage to property: #### 1. Aerial device products Directly or indirectly caused by products intended specifically for, and installed in or on, any aerial device, or directly or indirectly caused by or arising in connection with products which any of the persons insured knew would be so installed where such products are essential to the operation or navigation of any aerial device. #### 2. Asbestos Directly or indirectly caused by or arising out of or in connection with: (a) the inhalation of; (b) exposure to; (c) fears of the consequences of inhalation of or exposure to; (d) cleaning up, removal of; or (e) damage to or loss of use of any property arising out of; asbestos, asbestos fibres or any derivatives of asbestos. #### 3. Building defects and mould In respect of any building or structure directly or indirectly caused by or arising in connection with: (a) the action or effects of micro-organisms, mould, fungi, mildew, rot, decay, gradual deterioration, bacteria, protozoa or any similar or like forms; or (b) the failure of any building or structure to comply with or perform to the requirements of any building code or to meet the level of performance, quality, fitness or durability of its intended purpose; or (c) the failure of any building or structure to contain or incorporate materials, a design, a system or a standard of work which effectively prevents or manages the presence or penetration of moisture or water to which the building or structure might reasonably be subjected. In addition, we will not be liable to indemnify you for any costs or expenses arising out of the abating, testing for, monitoring, cleaning up, removing, containing, treating, detoxifying, neutralising, remediating or disposal of, or in anyway responding to or assessing the effects of micro-organisms, mould, fungi, mildew, rot, decay, gradual deterioration, bacteria, protozoa or any similar or like forms. This exclusion will not exclude any indemnity for personal injury or damage to property that is caused by or arises out of leakage of internal water pipes, cisterns or sewerage systems. #### 4. Defective work Where your liability is for the cost of performing, completing, correcting or improving any work done or undertaken by any of the persons insured. This exclusion will not apply to legal liability for resultant damage to other separate property or parts that any of the persons insured have not been working on. #### 5. Employees and Accident Compensation Act To or of: (a) any employee other than (b) and (c) of the employee definition; or (b) any person where the personal injury falls within the scope of cover provided by the Accident Compensation Act 2001 (or any replacement Act) and any subsequent amendments or any liability imposed by the provisions of any workers compensation legislation or any accident compensation legislation or any industrial award or agreement or determination, or would fall within the scope of cover but for: 1. a failure by the victim to correctly notify a claim to the Accident Compensation Corporation within the time required under the Act, or to claim any amount he or she would be entitled to under the Act for any other reason whatsoever; or 2. the decision of any authority including the Accident Compensation Corporation to decline a claim or limit its liability in whole or in part and for any reason whatsoever. #### 6. Fines and penalties In respect of any fines, penalties, reparation, exemplary, aggravated or liquidated damages. #### 7. Fraudulent or criminal intent Directly or indirectly caused by any act or omission having fraudulent, dishonest, criminal or malicious intent. #### 8. Intentional or reckless acts Arising directly or indirectly from any intentional or reckless act or omission. #### 9. Liability under agreement Arising out of or in connection with liability assumed under an agreement unless such liability: (a) would have attached in the absence of such agreement; (b) is assumed by any of the persons insured under a warranty of fitness or quality, or is implied by law, in respect of products; but this extension of cover does not apply to damage to property which is the subject of the agreement. #### 10. Loss of use Or loss of use of tangible property that has not been physically damaged or destroyed resulting from: (a) a delay in or lack of performance by or on behalf of any of the persons insured of any contract or agreement; or (b) the failure of products or work performed by or on behalf of any of the persons insured to meet the level of performance, quality, fitness or durability warranted or represented by any of the persons insured. This exclusion does not apply to loss of use of other tangible property resulting from the sudden and accidental damage to or destruction of products or work performed by or on behalf of any of the persons insured after such products or work have been put to their intended use by any person or organisation other than a person insured. #### 11. Pollutants Directly or indirectly caused by or arising out of pollutants unless caused by or arising out of an identifiable and sudden accidental and unexpected release (including discharge, dispersal, seepage, migration and escape) of pollutants that takes place in its entirety at a specific time and place. #### 12. Product repair or replacement In respect of any amount payable for the cost of recalling, withdrawing, replacing or repairing products or of making any refund on the price paid for products, provided that this exclusion does not apply to liability for damage to products caused by other products if they were physically independent at the time of such damage. #### 13. Professional duty Arising out of a breach of the duty owed in a professional capacity by any of the persons insured, but this exclusion does not apply to services rendered by members of your own first aid or ambulance services. #### 14. Property in care, custody or control Owned, occupied or held in trust by or in the care, custody or control of any of the persons insured other than: (a) premises that are not owned or rented by any of the persons insured but at which any of the persons insured is undertaking work in connection with the business; (b) property in your custody or control in any free car park operated by you. #### 15. Underground services Consisting of underground services, pipes or cables or legal liability arising out of that damage regardless of how the damage is caused unless the person insured has taken all reasonable steps immediately prior to the commencement of the work to establish the position of such services and has taken all reasonable steps to avoid damage in which case a $5,000 excess for Underground Services will apply to all such valid claims. #### 16. Vehicles Caused by the ownership, possession, or use by any of the persons insured of any vehicle which is or should have been registered or is otherwise insured in respect of the same liability. However if the person insured is not entitled to indemnity under any other policy this exclusion will not apply to claims arising from: (a) the loading or unloading of a vehicle or the bringing to or taking away of a load from a vehicle; or (b) the use of the vehicle as a tool of trade and not use as a motor vehicle. #### 17. Vibration or weakening of support Directly or indirectly caused by vibration or by the withdrawal or weakening of support of any structure or land. #### 18. Watercraft and aircraft Directly or indirectly caused by the ownership, possession, operation, repair, maintenance or use by any of the persons insured of any: (a) aerial devices; (b) watercraft exceeding 10 metres in length. --- ### Conditions Refer also to the general conditions of this policy. #### 1. Change of business If any change occurs in the business that increases the risk of insuring you, then you will give written notice to us within a reasonable period of becoming aware of such change. #### 2. Contribution to costs Where the amount paid to settle any liability claim against you or any insured exceeds the limit of indemnity for this broadform liability section our obligation to pay defence costs under this broadform liability section is limited to a proportion of the defence costs that is equivalent to the proportion that the limit of indemnity bears to the total amount paid. This condition only applies when we have not exercised our right under the payment of limit of indemnity condition. #### 3. Cross liability Any claim made by a person insured against any other person insured will be treated as though the party so claiming is not a person insured. Where more than one party is described as an insured each such party will constitute a separate person insured for the purpose of this clause. Provided that nothing contained in this condition: (a) will operate to increase the limit of indemnity shown in the schedule; (b) overrides the provisions of General Condition 10 (Joint Insurance). #### 4. Duty of care The persons insured will take reasonable precautions to prevent personal injury and damage to property and to: (a) comply with all obligations and regulations set out in any legislation applicable or imposed by any authority; (b) maintain premises and plant and everything used in the business in proper repair; and (c) at their own expense remedy any defect or eliminate any danger that may give rise to personal injury or damage to property. #### 5. Excess The claim will be adjusted net of the excess shown in the schedule which you must contribute as the first amount of any claim arising from each and every occurrence inclusive of defence costs. #### 6. Jurisdiction This insurance will not apply to any judgement delivered by a court outside New Zealand (or any judgement, registration or order obtained in New Zealand to enforce that same judgement) where the persons insured are represented in a country outside New Zealand by or through any: (a) branch; (b) trading division; (c) subsidiary; (d) associated company or companies; or (e) employee or company holding a power of attorney on behalf of any of the persons insured. This condition does not apply to the activities of the persons insured who have a normal place of residence in New Zealand and are away from New Zealand for a short time in connection with the incidental performance of clerical, managerial, marketing or sales responsibilities but not the performance of actual assembly, construction, dismantling, farming, manufacture, renovation or repair work and not involving the performance of any other physical work of a manual nature or in respect of a trade. #### 7. Payment of limit of indemnity We may at any time pay to you, or at our discretion to any of the persons insured claiming to be indemnified, the appropriate limit of indemnity (after deduction of any amounts already paid) or any lesser amount for which a claim or claims can be settled. Following payment under this condition we will relinquish control of the claim or claims and we will be under no further liability in connection with it, except for costs and expenses incurred before the date of the payment. #### 8. Premium adjustment If any part of the premium or renewal premium is based on estimates furnished by you, you will keep an accurate record containing all relative particulars and will allow us to inspect such record. You will within a reasonable period of the expiry of each period of insurance furnish such information as we may require. The premium or renewal premium will be adjusted and the difference paid by or allowed to you. --- ### Additional extensions and memoranda Each of the following extensions or memoranda will have no effect unless there is a statement in the schedule that the particular extension or memorandum will apply. They are subject to all the provisions of the policy and of this broadform liability section (unless otherwise stated). If there is any conflict or inconsistency between this broadform liability section and the extension or memorandum only the extension or memorandum will apply. If there is any conflict or inconsistency between extensions or memoranda only the more particular extension or memorandum will apply. #### Additive products PLB500 We will not cover you under this section in respect of damage to or loss of any mixture of which any product supplied by any of the persons insured is a constituent. #### Burning in the open air PLB502 It is a condition of this section that when you burn in an open air location that the following precautions will be complied with on each occasion: (a) fires to be in a cleared area and at a distance of at least nine metres from any property; (b) fires not to be left unattended at any time; (c) a suitable fire extinguisher to be kept available for immediate use; and (d) fires to be extinguished at least one hour before leaving the site. #### Concrete products PLB504 We will not cover you under this section for your legal liability for damage to any building or other structure incorporating concrete products supplied by any of the persons insured where the damage is caused by those products. #### Deep frying equipment PLB507 If on any premises owned or occupied by you there is any deep frying with oil or fat you warrant that: (a) each vat is fitted with a close-fitting steel lid that is shut when the vat is not in use; (b) a fire blanket is installed in a conspicuous place in the vicinity of, but at a safe distance away from, the frying operation and that the fire blanket is readily accessible for immediate use at all times during any deep frying operation; (c) a fully charged multi-purpose extinguisher of not less than 2.25kg capacity or a fully charged extinguisher specifically designed for use on flammable liquid fires is installed in a conspicuous place in the vicinity of, but at a safe distance away from, the frying operation and is accessible for immediate use at all times during any deep frying operation; (d) all thermostats, pans, blankets and extinguishers are at all times maintained in good working order; (e) extraction filters are cleaned weekly and extraction flues and ducting inspected monthly and cleaned as necessary; (f) where the fryer is an electric fryer a separate non-adjustable manual reset thermostat is fitted to it and set to disconnect the power supply when the temperature of the cooking liquids reaches 240 degrees centigrade; and (g) all cooking liquids for disposal are at all times stored in a metal bin with a close-fitting metal lid until removal from the premises. If you are not the occupier of the premises or operator of the equipment you will in writing instruct the occupier and operator to carry out the requirements in (a) to (g) above to ensure that the terms of this warranty are met at all times. #### Drugs clinical trials PLB508 We will not cover you under this section for your legal liability for personal injury arising in connection with clinical trials. #### Paints and cladding products PLB515 We will not cover you under this section for your legal liability for damage to any surface to which any product supplied by any of the persons insured is applied. #### Hairdressers and Beauty Therapists treatment risk PLB516 We will cover you for your legal liability for direct compensation as a result of personal injury to customers arising in connection with treatment prescribed or administered by or on behalf of any of the persons insured provided that: (a) our liability will not exceed $100,000 in respect of any one occurrence or series of occurrences as a result of or attributable to one source or original cause and limited in total in any one period of insurance to that amount; and (b) no claims will be admitted for any personal injury sustained or alleged to be sustained or becoming evident more than 30 days after treatment; and (c) no claims will be admitted for any personal injury sustained arising from surgical beauty treatments or the use of ultraviolet (UV) or any similar radiation. An excess of $1,000 will apply under this extension for each occurrence unless an alternative amount is shown in the schedule. #### New Zealand jurisdiction PLB521 The jurisdiction condition is deleted and replaced by the following: The cover under this section will only apply to judgements that are delivered by or obtained from a court within New Zealand. In addition, the insurance will not apply in respect of any judgement or order obtained in New Zealand for the enforcement of a judgement obtained elsewhere. #### Non-efficacy PLB522 We will not cover you under this section for your legal liability for personal injury or damage to property directly or indirectly caused by or alleged to be caused by the failure of any products manufactured or supplied by any of the persons insured to correctly perform their intended function. #### Non-efficacy installation PLB523 We will not cover you under this section for your legal liability for personal injury or damage to property directly or indirectly caused by or alleged to be caused by the failure of any products installed, serviced or repaired by any of the persons insured to correctly perform their intended function where the failure arises from such installation, servicing or repair. #### Faulty packing PLB524 We will not cover you under this section for your legal liability for personal injury or damage to property directly or indirectly caused by inadequate or incorrect packing. #### Advice design, formula or specification exclusion PLB525 We will not cover you under this section for your legal liability arising in connection with error or omission in: (a) advice, directions, instructions, markings or warnings given or omitted to be given; or (b) design, formula or specification. #### Electromagnetic radiation exclusion PLB526 We will not cover you under this section for your legal liability for personal injury or damage to property directly or indirectly caused by exposure to or contact with electromagnetic radiation. For the purposes of this exclusion electromagnetic radiation includes but is not limited to magnetic energy, waves, fields or forces generated, produced, distributed, transmitted or maintained by charges, currents, frequencies, energy or forces of electricity. #### Amended pollutants exclusion PLB527 The pollutants exclusion 11 of this broadform liability section is deleted and replaced by the following: Directly or indirectly caused by or arising out of pollutants unless caused by or arising out of an identifiable, unexpected and accidental release (including discharge, dispersal, seepage, migration and escape) of pollutants which commences during any period of insurance and is: (a) detected within 7 days of its commencement; and (b) reported to us within 7 days of its being detected. The commencement of any intermittent release shall be deemed to be at the start of the first release of the series. #### Clean up costs exclusion PLB528 We will not be under any obligation to indemnify you or any other insured for any costs arising out of any obligation on any of the persons insured to test for, monitor, clean up, remove, contain, treat, detoxify or neutralise or in any way respond to or assess the effects of pollutants on structures, premises, sites or land currently or previously owned, occupied, used by or under the control of any of the persons insured where the obligation arises out of such ownership, occupancy, use or control by any of the persons insured. #### USA and Canada exports PLB531 The geographical limits definition 2 (b) is amended to read: (b) products supplied from New Zealand. The following is added to the Limit of indemnity clauses: Notwithstanding the provision for the payment of defence costs for any actual or threatened legal action against any of the persons insured the Limit of indemnity will be inclusive of defence costs in respect of any personal injury or damage to property happening in the United States of America or its territories or possessions or in Canada. #### Australian operations PLB533 With the exception of the extension for Exemplary damages (if it is included in this section) the words "New Zealand" are replaced by the words "New Zealand and Australia" wherever else they appear in this section. This change does not in any way alter the provisions of General Condition no. 7 (Governing Law) in the Introduction section of this policy. #### Competitors exclusion PLB534 We will not cover you under this section for your legal liability for personal injury or damage to property to or of any competitor or participant directly or indirectly caused by participation in or practice or preparation for any performance, game, contest, race or display. #### Computer services PLB535 We will not cover you under this section for your legal liability arising in connection with the supply of computer software which does not correctly perform its intended function or which causes personal injury or damage to property. #### Bailees liability PLB537 Exclusion 14 (e) in the Property in Care Custody or Control extension is deleted. The limit of indemnity and the excess to apply in respect of this deletion is the same as for that extension unless an alternative amount for Bailees Liability is shown in the schedule. #### Treatment risk PLB538 We will not cover you in respect of personal injury arising out of treatment given and/or products sold, prescribed or administered by or on behalf of any of the persons insured. #### Genetic modification PLB539 We will not cover you under this section for your legal liability for personal injury or damage to property directly or indirectly caused by: (a) the presence on any premises of or the production of or the supply of any genetically modified organism or any other material that has been genetically modified where liability may be directly or indirectly attributed to the genetic characteristics of such organism or material; (b) the spread of or the threat of spread of any genetically modified organism characteristics into the environment or any change to the environment arising from research into, testing of or production of genetically modified organisms or other material. #### Warrant of Fitness PLB552 We will cover you for your legal liability to pay direct compensation for any negligent act, error or omission occurring within the period of insurance arising from your inspection and certification of vehicles for the purpose of issuing Warrants of Fitness, other inspection certificates, vehicle appraisal services and pre-purchase reports. Provided that: 1. this extension will not apply to your liability in connection with the valuation of any vehicle; 2. this extension will not apply to your liability in connection with Certificates of Fitness; 3. you are licensed and qualified to issue Warrants of Fitness; and 4. you hold any required license or qualification to issue other inspection certificates or pre-purchase reports, or to offer any vehicle appraisal services. Our liability to cover you under this extension will not exceed the figure specified in the schedule in any one period of insurance including claimants' costs and expenses. The following excesses will apply under this extension for each occurrence unless an alternative amount is shown in the schedule: $1,000 for Warrants of Fitness. $2,500 for pre purchase reports, vehicle appraisal services and other inspection certificates. #### Warrant of Fitness and Certificate of Fitness PLB553 We will cover you for your legal liability to pay direct compensation for any negligent act, error or omission occurring within the period of insurance arising from your inspection and certification of vehicles for the purpose of issuing Warrants of Fitness, Certificates of Fitness, other inspection certificates, vehicle appraisal services and pre-purchase reports. Provided that: 1. this extension will not apply to your liability in connection with the valuation of any vehicle; 2. you are licensed and qualified to issue Warrants of Fitness or Certificates of Fitness; and/or 3. you hold any required license or qualification to issue other inspection certificates or pre-purchase reports, or to offer any vehicle appraisal services. Our liability to cover you under this extension will not exceed $1,000,000 unless an alternative limit is shown in the schedule, in any one period of insurance including claimants' costs and expenses. The following excesses will apply under this extension for each occurrence unless an alternative amount is shown in the schedule: $1,000 for Warrants of Fitness and Certificates of Fitness. $2,500 for pre-purchase reports, vehicle appraisal services and other inspection certificates. #### Defective workmanship PLB554 We will cover you for your legal liability to pay direct compensation (including liability for resulting loss of use) consequent upon accidental damage to property on which you are or have been working, where the damage is caused by your defective workmanship, providing that: (a) the defective workmanship is done or undertaken by any of the persons insured during the period of insurance; and (b) the damage to property happens within the geographical limits. Exclusions 4 (Defective Work) and 12 (Product repair or replacement) do not apply to this extension. We will also cover you under this extension for your legal liability that would have been covered by automatic extensions 13 (Motor and watercraft repair) or 15 (Property in care, custody or control) of this Broadform liability section but for the exclusion from cover for your legal liability to pay the cost of performing, completing, correcting or improving any work done or undertaken or rectifying defective work, providing that all requirements for cover under this extension are also met and your liability would have been covered under this extension but for exclusion 14 (Property in care, custody or control). Our liability under this extension will not exceed $100,000 unless an alternative limit is shown in the schedule, in any one period of insurance inclusive of any defence costs. An excess of $1,000 will apply to claims under this extension for each occurrence unless an alternative amount is shown in the schedule. Except as expressly stated, nothing in this extension overrides any exclusion including exclusions 3 (Building defects and mould) and 13 (Professional duty). Workmanship means work done in the process of manufacturing, constructing, erecting, installing, servicing, repairing or treating property. #### Winemakers liability including defective workmanship PLB 555 We will cover you for your legal liability for damage occurring during the period of insurance to grapes, grape juice or wine not owned by you. Cover is limited to the value of the grapes, grape juice or wine when the damage occurred, not including any processing or bottling fee. Provided that: 1. this extension will not apply to claims in respect of: (a) unsatisfactory quality, flavour, bouquet or colour of wine, where the winemaker or bottler adhered to the standard winemaking or bottling process; (b) damage for which indemnity is available (or would be available except for the application of any excess) under a material damage policy, or liability for which cover is available under the broadform liability section; (c) damage, however caused, where any contract or agreement requires that insurance shall be effected by you; (d) damage caused by gradual deterioration or inherent vice; loss of use or market or delays or consequential losses of any description; (e) damage caused by change of temperature, resulting from the breakdown or total or partial destruction of any refrigeration or cooling apparatus from any cause; (f) damage or gradual deterioration due to faulty corks whether supplied by you or by another party. 2. It is warranted that any blending of wine or the addition of chemical additives during the winemaking process will be done under the direct supervision of a qualified winemaker. Exclusions 4 (Defective work), 11 (Pollutants) and 14 (Property in care, custody and control) do not apply to this extension. Our liability to cover you under this extension will not exceed the figure specified in the schedule in any one period of insurance including claimants' costs and expenses. The following excesses will apply under this extension for each occurrence unless an alternative amount is shown in the schedule: $1,000 for Warrants of Fitness. $2,500 for pre purchase reports, vehicle appraisal services and other inspection certificates. #### Winemaking liability PLB 556 We will cover you for your legal liability for damage occurring during the period of insurance to grapes, grape juice or wine not owned by you. Cover is limited to the value of the grapes, grape juice or wine when the damage occurred, not including any processing or bottling fee. Provided that: 1. this extension will not apply to claims in respect of: (a) unsatisfactory quality, flavour, bouquet or colour of wine, where the winemaker or bottler adhered to the standard winemaking or bottling process; (b) damage for which indemnity is available (or would be available except for the application of any excess) under a material damage policy, or liability for which cover is available under the broadform liability section; (c) damage, however caused, where any contract or agreement requires that insurance shall be effected by you; (d) damage caused by gradual deterioration or inherent vice; loss of use or market or delays or consequential losses of any description; (e) damage caused by change of temperature, resulting from the breakdown or total or partial destruction of any refrigeration or cooling apparatus from any cause; (f) damage or gradual deterioration due to faulty corks whether supplied by you or by another party. 2. It is warranted that any blending of wine or the addition of chemical additives during the winemaking process will be done under the direct supervision of a qualified winemaker. Exclusions 11 (Pollutants) and 14 (Property in care, custody and control) do not apply to this extension. Our liability to cover you under this extension will not exceed the amount shown in the schedule in any one period of insurance inclusive of any defence costs. The excess shown in the schedule will apply to claims under this extension for each occurrence. Except as expressly stated, nothing in this extension overrides any exclusion including exclusion 4 (Defective work). --- ## Employers Liability ### The indemnity We will indemnify you for defence costs and all sums that you become legally liable to pay as damages arising from claims resulting from any employee sustaining personal injury in New Zealand arising out of or in the course of their employment in the business shown in the schedule, provided that: (a) you first become aware of the claim during the period of insurance; and (b) the claim is notified to us during the period of insurance or within 30 days after the end of the period of insurance; and (c) the personal injury occurred on or after the retroactive date. ### Automatic extensions These extensions form part of this section and are subject to all its provisions (unless otherwise stated). The total of all payments made under these automatic extensions will be part of and not in addition to the limits of indemnity for this employers liability section unless otherwise stated. Any reference to claim in these extensions will mean any claim notified to us during the period of insurance or within 30 days after the end of the period of insurance. If there is any conflict or inconsistency between this employers liability section and the extension, only the extension will apply. If there is any conflict or inconsistency between the extensions, only the more particular extension will apply. #### 1. Advancement of defence costs We will advance defence costs to you as and when they are incurred before the final disposition of the claim. Such payments will be repaid to us by you severally, according to your respective interests, in the event and to the extent that the claim is in fact determined not to be covered or is resolved on terms or in a manner that excludes it from cover under this employers liability section. #### 2. Continuous cover Notwithstanding exclusion 8 (Prior claims and known circumstances) of this employers liability section, where: (a) you first became aware of any claim, or fact or circumstance as described in condition 6 (Notification of circumstance), after the continuity date and before the period of insurance; and (b) you do not notify us of such claim, or fact or circumstance, until a date during the period of insurance or within 30 days after the period of insurance; then: (i) in the absence of fraudulent non-compliance with the duty of disclosure or fraudulent misrepresentation by any of you in respect of such claim, fact or circumstance; and (ii) provided that we have continuously been your employers liability insurer from and after the continuity date; we will accept notification of such claim, or any claim arising from such facts or circumstances, during the period of insurance. The cover provided will be in the terms of this policy except that the applicable limit of indemnity and excess will be as they were at the date when you first became aware of the claim or facts or circumstances. ### Optional Extensions Each of the following extensions will have no effect unless there is a statement in the schedule that the particular extension will apply. They are subject to all the provisions of the policy and of this employers liability section (unless otherwise stated). If there is any conflict or inconsistency between this employers liability section and the extension only the extension will apply. If there is any conflict or inconsistency between extensions only the more particular extension will apply. #### Defence Costs 565 In the event of any claim under the statutory liability or employers liability sections of this policy which is subject to a charge under Section 9 of the Law Reform Act 1936 and as a consequence of which defence costs cannot be paid under these sections then the policy is extended to indemnify defence costs up to a limit of $250,000 unless an alternative limit is shown in the schedule, for any one claim and in the aggregate: (a) during the period of insurance; and (b) over both sections. --- ### Exclusions Refer also to the general exclusions of this policy. We will not be liable for: #### 1. Accident Compensation Act cover compensation for personal injury in respect of which the claimant is entitled to compensation to any extent under the Accident Compensation Act 2001 (or any replacement Act) and any subsequent amendments, or would be so entitled had a claim been lodged under such Acts, or if you were not an exempt employer under such Acts. #### 2. Asbestos any claims directly or indirectly caused by or arising out of or in connection with: (a) the inhalation of; (b) exposure to; (c) fears of the consequences of inhalation of or exposure to; (d) cleaning up, removal of; or (e) damage to or loss of use of any property arising out of; asbestos, asbestos fibres or any derivatives of asbestos. #### 3. Building defects and mould or fulfil any obligation in respect of any claim (including defence costs or any other costs) or personal injury that is directly or indirectly caused by or contributed to, or arises in connection with: (a) the action or effects of micro-organisms, mould, fungi, mildew, rot, decay, gradual deterioration, bacteria, protozoa or any similar or like forms, in any building or structure; or (b) the abating, testing for, monitoring, cleaning up, removing, containing, treating, detoxifying, neutralising, remediating or disposal of, or in anyway responding to or assessing the effects of micro-organisms, mould, fungi, mildew, rot, decay, gradual deterioration, bacteria, protozoa or any similar or like forms, in any building or structure. #### 4. Deliberate or wilful non-compliance any liability arising directly or indirectly from, or in any way connected with any claim that arises from: (a) your deliberate or wilful breach of or failure to comply with or disregard for the provisions of any Act; (b) your deliberate or wilful failure to comply with or disregard for any lawful notice or order issued by any regulatory authority under any Act; (c) your deliberate or wilful obstruction, hindrance or resistance to any person exercising their powers under any Act. #### 5. Employment contract claims arising directly or indirectly out of the unjustifiable dismissal of any employee or other personal grievance arising out of a contract of employment. #### 6. HSE notices any claim arising directly or indirectly out of any failure by you to comply with any improvement, prohibition or suspension notice issued to you or any employee under The Health and Safety at Work Act 2015 or equivalent notices issued under any replacement Act. #### 7. Other than usual business any employee not directly employed to carry out the normal activities of the business unless you give prior notice of such employment to us and we confirm our agreement in writing. #### 8. Prior claims and known circumstances (1) any claim made, threatened or intimated against you before the continuity date; (2) any claim arising directly or indirectly from any facts or circumstances: (a) notified under any insurance that was in force before the inception of the employers liability section of this policy; or (b) known to you before the continuity date and which might reasonably be expected to give rise to a claim. #### 9. Prior injury any personal injury sustained before the retroactive date shown in the schedule. #### 10. Third party exclusion any liability arising directly or indirectly from, or in any way connected with any claim that arises from, the acts or omissions of any third party contracted by you in accordance with your business. --- ### Conditions Refer also to the general conditions of this policy. #### 1. Authority The entity agrees to act on your behalf with respect to: (a) giving notice of a claim. (b) the payment of premium and the receipt of any refund of premium that may become due; (c) the negotiation and receipt of any endorsement. #### 2. Conduct of claim We will be entitled to take over and conduct in your name, the defence of any claims or the prosecution of any claim, in your name, for your benefit. If we choose to do so, we will have full discretion in the conduct of the proceedings. If you do not agree with our decision to settle a claim the terms of Condition 7 (Senior counsel) will apply. #### 3. Election to settle We may settle any claim with your consent, or where settlement is recommended by a senior counsel in accordance with condition 7 (Senior counsel) of this employers liability section. If however consent to such settlement is still withheld by you our liability for the claim will not exceed the amount for which the claim could have been settled plus defence costs incurred with our consent up to the date such settlement was recommended. #### 4. Excess The claim will be adjusted net of the excess shown in the schedule which you must contribute as the first amount of any claim. A single excess will apply to all claims alleging a single personal injury. #### 5. Limits of indemnity The