Commercial insurance
Material damage
This policy covers the following:
Buildings
Plant
Stock
Full Insurance on all these policies is imperative, as under insurance can be devastating.
Material Damage Policy
In consideration of the Insured named in the Schedule having paid or promised to pay the required premium, the Company named in the Schedule agrees to indemnify the Insured as set out in the Policy.
If, during the Period of Insurance, any:
Loss or Damage happens to any Insured Property at the location; e.g. Plant, Fixtures, Fittings, Stock, Buildings and other Contents
Costs or losses arise for which this Policy is expressly extended;
then, subject to the terms, conditions and exclusions of this policy, the company will indemnify the Insured for the Loss or Damage and costs.
Policy Exclusions
All Insurance policies contain exclusions; these are the types or causes of loss, damage or liability that are not insured. The following list summarises those exclusions that are common to many insurance policies.
Terrorism, War and Nuclear risks
Asbestos, pollution or contamination
Deliberate act error or omission by you
Fraudulent claims
Gradually developing losses, wear and tear, maintenance and the like
Leaky Buildings/Building defects
IT/Data date recognition failure.
In addition, each policy contains a number of specific exclusions; these may vary considerably according to the type of policy. The main exclusions are summarised in the policies.
Many policies are subject to an excess or deductible; this is the amount of the claim that you are required to pay, before insurers are obligated to pay.
Business interruption
This policy puts you in the same position after a loss as you were before a loss occurred. The cover only responds where you have a claim under a material damage policy. It is designed to pay all overheads and wages, during the period your business is interrupted as a result of a fire or a similar event. Talk to your broker to ensure you have the full cover you need. The policy also has an indemnity period (most usually 12 months) which is the maximum amount of time that the policy will pay for.
Business Interruption Policy
Physical Loss or physical damage, unintended and unforeseen by the Insured as insured by the Insured’s Material Damage Policy(ies), or would be but for the application of an excess or deductible, or explosion, rupture, bursting, cracking, leakage or collapse due to generated or applied fluid pressure within or without unintended and unforeseen by the Insured, of any steam boiler, economiser, pipe, or other vessel.
(All such loss or damage being hereinafter terms ‘Damage)’ and business carried out by the Insured at the Premises is consequently interrupted or interfered with, then the Company will pay to the Insured in respect of each item in the Schedule - the amount of loss resulting from such interruption or interference in accordance with the provisions of this policy eg shortfall in turnover.
Commercial motor vehicle
There are numerous items insured under these policies. Examples are as below, but are not limited to these items:
Business cars
Trucks
Forklifts
Tractors
The policy also has liability cover for damage caused to property.
Commerical Motor Vehicle Policy
Limit of Liability -Section 1(Own Vehicle Damage)
Market value of the Insured Vehicle at the time of its Loss or the Agreed Value of the Insured Vehicle declared to the Company (if insured on this basis) and the Special Limits of Liability specified in the Insurer’s Schedule.
Limit of Liability - Section 2 (Third Party Liability)
Limit any one Accident (including the cover provided by the Automatic Extensions to Section 2 – subject to the Insurer’s limit of indemnity
Loss to property where the costs are recoverable from the Insured under section 43 of the Forest and Rural Fire Act 1997 – subject to the Insurer’s limit of Indemnity.
Public liability
This is a liability cover (subject to policy terms) to cover your legal liability for damage or personal injury caused by an occurrence in connection with your business.
This policy requires an insurance broker to advise you of the amount of cover and type of cover required.
General Liability
Public and Products Liability
Subject to the Policy terms, the Insurer will indemnify the Insured for all sums that the Insured shall become legally liable to pay as Damages in respect of Personal Injury or Property Damage happening during the Period of Insurance within the Policy Territory and caused by an Occurrence in connection with the Business of the Insured.
Limit of Indemnity
The Insurer’s maximum liability in respect of any claim, or any series of claims, arising out of one Occurrence, or in the aggregate during the Period of Insurance in respect of an Occurrence involving the Insured’s Products, shall not exceed the Limit of Indemnity stated in the Policy of Schedule, or the sub-limit in any applicable Automatic Coverage Clause. All Personal Injury or Property Damage in respect of continuous or repeated exposure to substantially the same general conditions shall be construed as arising out of one Occurrence.
Provided that:
immediately the Insurer has paid the Limit of Indemnity in respect of any judgement or settlement, its liability in relation to Costs and Expenses shall cease;
if a payment exceeding the Limit of Indemnity has to be made to dispose of a claim, the Insurer’s liability in relation to Costs and Expenses shall be limited to the same proportion as the Limit of Indemnity bears to the amount required to dispose of the claim.
Costs and Expenses
In addition to the applicable Limit of Indemnity or sub-limit, the Insurer will pay Costs and Expenses necessarily and reasonably incurred in relation to a claim against the Insured for which there is cover under this Policy (irrespective of whether or not the Insured is found legally liable).
Excess
The amount shown in the Policy Schedule, or in any applicable Automatic Coverage Clause, as the Excess, shall be borne by the Insured in respect of each and every claim, or series of claims arising out of one Occurrence.
Statutory liability
This should form part of your Liability insurance package, and requires the input of your insurance broker. The policy relates to the liability of your business for insured acts.
1. Cover
The Insurer will indemnify the Insured in accordance with the terms of this Policy in respect of:
any Fine payable by the Insured;
Defence Costs, except where it is alleged that the Insured has acted or omitted to act knowingly, wilfully or intentionally unless the Insured is subsequently acquitted
arising out of any Event of innocent breaches of a Statutory Law, as covered under the Policy.
PROVIDED THAT the Event:
happened on or after the Retroactive Date; and
is first notified in writing to the Insurer by the Insured during the Period of Insurance, or within 21 days after its expiry.
2. Limits of Indemnity
2.1 The Insurer’s liability to indemnify the Insured for all claims under this Policy is limited in the aggregate to the amount specified in the Policy Schedule applicable for the Period of Insurance within which the Insured has or should have first notified the Insurer of the Event
2.2 Where an Event is alleged to have taken place on, over or between a number of
specified dates, which fall within more than one Period of Insurance, for the purposes of the applicable Limit of Indemnity and Excess the Event will be treated as if it occurred in the Period of Insurance in which the Insured has or should have first notified the Insurer of the Event
Excess
The Excess specified in the Policy Schedule shall be borne by the Insured in respect of each and every Event.
Employers' liability
This policy is designed to cover damages both punitive and exemplary where the personal injury was not a personal injury covered under the Accident Compensation Act. Your Insurance Broker will advise you in regard to this cover.
Employers Liability Policy
The Insurer shall indemnify the insured in respect of legal liability for any Claim brought by an Employee for:
Cover A
Damages as a result of that Employee sustaining Personal Injury in New Zealand that arose out of, or in the course of such Employee’s employment in the Business PROVIDED THAT the Personal Injury WAS NOT a Personal Injury for which coverage is determined to exist under the Accident Rehabilitation and Compensation Insurance Act 1992 or the Accident Insurance Act 1998 or any amending or replacement legislation; or
Cover B
Punitive or Exemplary Damages as a result of the Employee sustaining Personal Injury in New Zealand that arose out of, or in the course of such Employee’s employment in the Business PROVIDED THAT the Personal Injury WAS a Personal Injury for which coverage is determined to exist under the Accident Rehabilitation and Compensation Insurance Act 1992 or the Accident Insurance Act 1998 or any amending or replacement legislation
PROVIDED THAT in respect of Cover A and B above:
the Claim against the Insured was first made during the Period of Insurance and
the Claim was immediately notified in writing to the Insurer by the Insured during the Period of Insurance or within 21 days of expiry, time being of the essence and
the Personal Injury arose out of an event, circumstance, accident or happening which occurred subsequent to the Retroactive Date and before the expiry of the Period of Insurance
Legal Costs and Expenses incurred in the defence of such Claims
Legal Costs and Expenses incurred where, in respect of a Claim, the Insured makes an application to the Court to determine whether the Personal Injury is properly the subject of cover pursuant to the Accident Rehabilitation and Compensation Insurance Act 1992 or the Accident Insurance Act 1998 or any amending or replacement legislation.
Professional indemnity
This is a liability cover for professionals and is required for many occupations such as law, accountancy, architecture and numerous other professions.
Your Insurance Broker will advise you if cover is required.
Professional Indemnity Policy
Civil Liability
The Insurer shall indemnify the Insured for any Valid Claim subject to the terms of the Policy for errors or omissions relating to
Costs and expenses
In addition the Insurer shall pay costs and expenses incurred with the written consent of the Insurer in the defence or settlement of any Valid Claim, up to the Limit of Indemnity
Directors' liability
This policy is designed to indemnify directors in respect of damages awarded against them.
This is complex cover and requires the assistance of your broker.
Director's Liability Policy
Director’s Indemnity
Indemnify a Director up to the Limit of Indemnity, for any Valid Claim made against a Director in respect of:
1.1 damages awarded or judgments entered against a Director
1.2 settlements negotiated with the prior written consent of the Insurer
1.3 an award of costs and expenses in favour of a claimant;
1.4 fines, penalties, punitive or exemplary damages (except in the USA) which are legally
insurable, the enforceability of which is governed by the applicable law which most favours cover for punitive and exemplary damages
1.5 any interest accruing after the date of entry of judgment against a Director and until the date the Insurer pays or tenders or deposits in a Court of Law the judgement sum or such part of that judgement sum as is required to satisfy the Insurers liability to the Director pursuant to this Policy.
1.6 Defence Costs
but only where the Company is not legally permitted to indemnify the Director.
Company reimbursement
Reimburse the Company up to the Limit of Indemnity, to the extent that the Company is legally permitted to indemnify a Director for a Valid Claim covered under Insuring Clause 1 (Directors Indemnity).
These are the policies that are being placed daily; other insurances are available on request.
Your duty of disclosure
As the Insured, it is your responsibility to disclose all material information to Insurers when obtaining cover, whether or not proposal forms are applicable or completed.
Information is material if it would affect the Insurer’s estimate of the risk involved, or if the misrepresentation/non-disclosure induces the Insurer to enter into the contract of insurance on particular terms.
The Insurer is not required to make enquiries, the onus falls upon you the Insured. If any material information is omitted or misrepresented, Insurers have the right to void the policy and return the premium. This means that there is no longer an insurance policy and no claims will be paid. It is therefore extremely important to take care when providing information to enable the Insurers to consider the risk, regarding the accuracy and completeness of that information.
The Duty of Disclosure arises when the insurance is first taken out and also every time you renew or amend it. The Policy may also include a requirement to advise the Insurer of changes throughout the term of the policy.
Please contact Neville Newcomb Insurance Brokers Limited immediately if you need to make any mid-term changes to your policy so that we can obtain approval from the Insurers and any further information required.
In order to remain fully protected, it is essential that any changes in risk or business developments are notified to us promptly.
Examples of changes or developments which need to be notified are:
Acquisition of new properties
Alterations or additions to existing buildings or plant (in excess of capital additions limit).
Changes in occupancy, or process of manufacture.
Alterations in type, quantity, or storage method of dangerous goods.
Removal of assets to new locations.
Arrangement of any new mortgage, debenture, or other lien on property.
Acquisition of controlling interests, or joint undertaking in another company.
Hire, lease or borrowing of equipment (inward or outside).
Contractual liability, granting of indemnity, or “hold harmless” agreements.
Dependence on a new outside supplier or customer.
New overseas markets.
Installation of pressure plant, or key machines.
Use of private aircraft, or watercraft.
If you are unsure whether a fact is material or not, It should be disclosed.
Tenders and major expansions:
Submit details in advance for advice on insurance ramifications.
Claims
Any circumstances likely to give rise to a claim should be reported immediately.
Risks
In addition to the risks currently insured, there are other risks that present serious exposure to business or individuals. The main covers are summarised below. In addition, major changes & development in your business activities or domestic situation will create a need to review your insurance programme.
We are also able to advise on a wide range of employee benefit/life/medical & related covers.
Associations Liability (Specific)
Advance Business Interruption
Bloodstock or Livestock
Boiler and Pressure Vessel Explosion
Bonds
Container Liability
Contract Bonding/Contract Guarantee
Contract Penalties/Liquidated Damages
Crops (Growing)
Crops (Forestry)
Contingency Insurance (inc non-appearance, cancellation, weather risks)
Contract Works
Customer and Payments Bonds
Electronic Computer Crime
Electronic Equipment
Breakdown Business Interruption
Employment Practices Liability
Extended Warranty
Fidelity
Fine Arts
Freight Forwarding Liability
Health Care Plans
Infringement of copyright
Livestock
Machinery Breakdown (MD & BI)
Marine Hull
Marine Cargo – Overseas
Marine Cargo – Local Transits
Mortgage and Lease Guarantee
Product Performance Guarantee
Product Recall
Strike
Technology Liability
Trustees Liability
Travel
Disclaimer:
This is only a brief summary of policies and in no way covers all the conditions and exclusions.
Neville Newcomb Insurance Brokers Limited has no liability for any of the information supplied.