# QBE — QBE Material Damage & Business Interruption

**Vertical:** commercial-building
**Status:** active
**Wording effective:** 2026-05-26
**Confidence tier:** inferred
**Source PDF:** https://www.qbe.com/media/qbe/apac/new-zealand/document-listing/2025/02/27/03/33/qbe-mdbi-policy-mdbi-0718qia.pdf

## Bi Basis

Gross profit basis (Insured Profit defined as excess of combined Turnover plus closing Stock over combined opening Stock plus Uninsured Working Expenses); also covers Insured Revenue (money paid or payable for goods/services) and Insured Rentals and Management Fees; Shortage in Turnover is the trigger measure; Payroll cover also available; Standard Turnover is the 12-month pre-loss comparator period

## Exclusions

- **0:** total or partial cessation of work unless also resulting from an otherwise insured Event
- **1:** Computer Virus — Loss or Damage directly or indirectly caused by or arising from any Computer Virus
- **2:** confiscation, requisition or destruction of or Damage to Insured Property by order of government or local authority (except for fire or another insured peril control purpose)
- **3:** consequential losses including fines, penalties, loss of use, delays, loss of market, rates, tax, duty or development charges, and charges arising out of capital appreciation to comply with Regulations (unless under Section 2)
- **4:** destruction, distortion, erasure, corruption, alteration, misinterpretation or misappropriation of Electronic Data from any cause
- **5:** error in creating, amending, entering, deleting or using Electronic Data
- **6:** inability or failure to receive, send, access or use Electronic Data
- **7:** faulty materials — cost of repairing or replacing faulty materials
- **8:** faulty workmanship — cost of putting right faulty workmanship
- **9:** faulty or defective design, plan or design specification
- **10:** Historic, heritage or cultural heritage significance or value — additional costs to comply with Regulations in connection with such significance
- **11:** illegal substances — Loss, Damage, interruption or interference directly or indirectly caused by or arising from any activity in connection with drugs or illegal substances (except fire or explosion)
- **12:** notifiable infectious disease under the Health Act 1956
- **13:** pest management plan under the Biosecurity Act 1993
- **14:** interruption of supply — Loss or Damage or business interruption directly or indirectly caused by interruption of supply of electricity, fuel, water, gas, steam or refrigerant
- **15:** leaky building — Loss or Damage caused by moisture or water build-up, penetration of external moisture or water, or action of mould, fungi, mildew, rot, decay, gradual deterioration, micro-organisms, bacteria, protozoa
- **16:** machinery breakdown — explosion, overheating, rupture, bursting, cracking, leakage or collapse of Machine; mechanical, hydraulic, electrical or electronic breakdown, failure, malfunction or derangement of any Machine (unless caused by non-excluded loss)
- **17:** geothermal activity or subterranean fire
- **18:** landslip, subsidence or erosion of the land (subject to Extension 12)
- **19:** earthquake, tsunami, volcanic eruption, hydrothermal activity, and fire following any of these
- **20:** normal settlement, shrinkage or expansion of Buildings, foundations, walls, pavements, roads or other structural improvements
- **21:** nuclear weapons material
- **22:** ionising radiation from or contamination by radioactivity from nuclear fuel, nuclear waste or combustion of nuclear fuel
- **23:** radioactive, toxic, explosive or other hazardous or contaminating properties of any nuclear installation, reactor or nuclear assembly
- **24:** any weapon or device employing atomic or nuclear fission and/or fusion or other like reaction or radioactive force or matter
- **25:** fumes, gas, dust, smoke or smuts
- **26:** normal working, normal maintenance, wear and tear, erosion, corrosion, slowly developing deformation or distortion, marring or scratching
- **27:** action of micro-organisms, animal, vermin or insects
- **28:** inherent nature of the property or action of light
- **29:** seepage, pollution or contamination
- **30:** changes in artificially controlled temperature, or changes in atmosphere or humidity
- **31:** property in the course of installation, construction, demolition or erection, or testing (subject to Extension 18)
- **32:** Money (as property — subject to Extension 15)
- **33:** jewellery, precious stones, furs, precious metals or bullion (other than as Stock or part of plant/machinery)
- **34:** motor vehicles, other mechanically or electrically propelled vehicles, watercraft and aircraft (other than as Stock)
- **35:** property in transit other than at Premises owned or occupied by You
- **36:** property damaged as a result of undergoing any Production Process where Damage is directly caused by that process
- **37:** standing timber, growing crops, live plants, livestock or any living creature, trees, hedges, dams, canals, reservoirs, artificial turf, railways, road or railway tunnels, bridges, docks, piers, wharves, mining property beneath the surface, any land including topsoil and backfill
- **38:** property located outside New Zealand (unless shown in Schedule)
- **39:** sanctions — Loss or Damage or benefit that would contravene any UN resolution or trade/economic sanctions laws of New Zealand, Australia, United Kingdom, United States of America or European Union
- **40:** seismic strengthening — costs of seismic strengthening to a level greater than immediately prior to Damage for damaged but not Destroyed property
- **41:** terrorism — Loss, Damage, death, injury, illness, cost or expense directly or indirectly caused by, resulting from or in connection with any act of Terrorism; and actions taken in controlling, preventing or suppressing any act of terrorism
- **42:** Transmission and Distribution Lines (except lines from public highway to insured Premises within 300 metres of an insured structure that are the responsibility of the Insured)
- **43:** unexplained disappearances, shortages revealed only by inventory, shortages due to clerical or accounting errors
- **44:** fraudulent scheme or device, theft or false pretence practised on or by You or any person having care of Insured Property including employees
- **45:** war, invasion, acts of foreign enemies, hostilities or war-like operations (whether war be declared or not), civil war
- **46:** mutiny, civil commotion amounting to a popular rising, military rising, insurrection, rebellion, revolution, military or usurped power
- **47:** exposure to weather conditions where property is not normally left in the open unless reasonable precautions taken

## Flood Cover

Not explicitly addressed as a covered or excluded peril in the main body of the truncated wording; flood is referenced in the Electronic Data exclusion carve-back list as a named peril. No specific flood sub-limit identified in the wording provided.

## Glass Cover

Covered as part of Contents definition (glass, fixtures and fittings). Extension 24 (Rented premises) covers glass in rented premises up to NZD 5,000 per event / NZD 10,000 per Period of Insurance. Fixed signs and lettering covered under Appurtenances definition.

## Claims Basis

occurrence — Policy insures Loss or Damage happening during the Period of Insurance; Event defined as accident or series of accidents from one source/original cause with 72-hour aggregation

## Excess Basis

per event — Excess is the amount shown in the Policy or Schedule to be borne by You in respect of each and every claim, or series of claims, arising out of any one Event; Extension 16 (Multiple excesses) provides that where more than one Excess is payable for any claim or series of claims arising from any one Event, only the highest Excess shall apply

## Flood Excess

Not specified in policy wording — Schedule-dependent

## Valuation Basis

Reinstatement value (replacement cost new) where shown in Schedule; Indemnity value (lesser of repair cost, replacement less depreciation, or market value) where not shown for Reinstatement; special bases apply to Stock, Portable Electronic Data Equipment, Works of Art, Money, Software and Records

## Earthquake Cover

Excluded under Exclusion 13 (Natural events) — earthquake, tsunami, volcanic eruption, hydrothermal activity and fire following any of these are excluded. EQC Act 1993 referenced in definitions (Residential Property, EQC Act). No automatic reinstatement of Natural Disaster Sum Insured. Cover may be available only if separately agreed/scheduled.

## Earthquake Excess

Not specified in policy wording — Schedule-dependent

## Territorial Scope

New Zealand — Insured Property must be located at Premises shown in Schedule; Extension 3 (Capital additions) applies to property in New Zealand; Employees effects covered in New Zealand or Australia; property located outside New Zealand excluded under Exclusion 16(g) unless shown in Schedule

## Bomb Terrorism Cover

Excluded — Exclusion 19 (Terrorism) excludes all loss, damage, death, injury, illness, cost or expense directly or indirectly caused by, resulting from or in connection with any act of Terrorism regardless of any other contributing cause; also excludes actions taken in controlling, preventing or suppressing any act of terrorism. No terrorism pool reference found.

## Indemnity Value Available

y — applies to items not shown in Schedule as insured for Reinstatement; settled as lesser of: (a) cost of repair/replacement to pre-loss condition, (b) cost of rebuild/repair as new less allowance for age and condition, or (c) current market value having regard to condition and state of repair; also applies as fallback under Reinstatement clause in defined circumstances

## Machinery Breakdown Cover

Excluded under Exclusion 12 (Machinery breakdown) for explosion, overheating, rupture, bursting, cracking, leakage, collapse, and mechanical/hydraulic/electrical/electronic breakdown of any Machine, unless caused by a loss not otherwise excluded. Partially reinstated by Extension 13 (Machinery breakdown) up to NZD 10,000 per event with a combined MD and BI maximum of NZD 50,000, unless otherwise stated in Schedule.

## Average Coinsurance Clause

Not found in truncated policy wording — Extension 5 (Valuation of property) under Reinstatement clause requires sum insured to be not less than quantity surveyor/valuer estimate of reinstatement cost but no explicit average/coinsurance penalty clause was identified in the provided text

## Replacement Value Available

y — applies where item is shown in Schedule as insured for Reinstatement; means replacement/restoration to condition as when new using current equivalent materials; Indemnity basis applies if insured elects not to reinstate, work not started with reasonable despatch, repair not permissible by regulation, or property awaiting demolition

## Reinstatement Of Sum Insured

Automatic reinstatement of Sum Insured after partial loss from date property is repaired, replaced or reinstated, subject to payment of additional premium. No automatic reinstatement following Natural Disaster loss — any reinstatement of Natural Disaster Sum Insured must be agreed in writing by insurer.

## Professional Fees Sublimit Nzd

20000

## Sum Insured Inflation Adjustment

none — no automatic inflation/CPI adjustment clause found in policy wording

## Volcanic Tsunami Landslide Cover

Volcanic eruption, tsunami and hydrothermal activity excluded under Exclusion 13 (Natural events) as Natural Disaster perils. Landslip/subsidence excluded under Exclusion 13(b) but partially reinstated by Extension 12 (Landslip and subsidence) up to NZD 100,000 per event / NZD 500,000 per Period of Insurance for non-gradual, non-progressive landslip/subsidence not caused by Natural Disaster.

## Machine-readable endpoints

- Facts JSON: `/api/product/qbe/mdbi/facts.json`
- Summary Markdown (this file): `/api/product/qbe/mdbi/summary.md`
- Full wording: `/api/product/qbe/mdbi/wording.md`
- Version history: `/api/product/qbe/mdbi/history.json`

## Citation

Cite as: QBE QBE Material Damage & Business Interruption (NZ), CommercialBuildingInsurance.co.nz, accessed 2026-05-27.
Canonical URL: https://commercialbuildinginsurance.co.nz/api/product/qbe/mdbi/summary.md
License: CC BY 4.0 — attribute https://commercialbuildinginsurance.co.nz