> _Markdown transcription of QBE QBE Material Damage & Business Interruption policy wording, effective 2026-05-26. Source: https://www.qbe.com/media/qbe/apac/new-zealand/document-listing/2025/02/27/03/33/qbe-mdbi-policy-mdbi-0718qia.pdf_ --- # Material Damage and Business Interruption Policy ## Introduction This Policy sets out the definitions, terms, exclusions and conditions of insurance provided by QBE Insurance (Australia) Limited and the operative sections of the Policy are shown in the Schedule. We ask You to read this Policy, the Schedule and any endorsements carefully so that You are aware of the terms and conditions. If these are not completely in accordance with Your intentions, please contact Your insurance adviser. Please bear in mind that no insurance policy covers everything and the coverage provided is subject to the definitions, terms, exclusions and conditions of this Policy. The Policy, Schedule and endorsements (if any) are to be read together and any word or expression to which a specific meaning has been given shall bear such meaning wherever it may appear unless otherwise specifically stated. Marginal notes or headings do not form part of this Policy but are used solely for identification. This Policy is based upon the information provided in the application for insurance and any statements or documents which are deemed to be incorporated in this contract. ## Your duty of disclosure When You apply for insurance You have a legal duty of disclosure. This means You must disclose all information that is relevant and/or material which would influence the judgment of a prudent underwriter: (a) to accept or decline the risk of insurance; and (b) if accepted, on what terms and at what cost. In addition, You confirm that You have made full and proper enquiries of all the entities insured under this Policy and warrant the accuracy of the information disclosed to Us. If this information proves to be inaccurate, We may at Our option void this Policy. The duty to disclose relevant or material information is not limited to the questions listed in the proposal form if a proposal form is completed. You have a duty of disclosure each time this Policy renews or if You make changes to this Policy. ## Insuring agreement In consideration of the payment of premium QBE Insurance agrees to indemnify You in accordance with the insurance selected during the Period of Insurance. ## Definitions (applying to all sections) If words are shown with initial capital letters, they are definitions and have a special meaning. These definitions apply to both singular and plural. ### 'Adjusted Loss' The amount We agree is payable for Your claim after the application of any Sum Insured or sub-limit, and of any Excess. ### 'Alternative Period' The number of weeks shown in the Schedule during which the results of the Business shall be affected in consequence of the Insured Damage, starting from the date of the Insured Damage. ### 'Appurtenances' - fixed signs and lettering - walls - roads - fixtures - tanks - retaining walls - paths - pipes - poles - gates - yards - cables - power lines and their supports - fences - plant if You are legally responsible for insuring them and their value is not included in the Sum Insured on Contents or Stock. However, it does not include Landscaping. ### 'Buildings' Any permanent structures and their Appurtenances located in or about the Premises if You are legally responsible for insuring them and their value is not included in the Sum Insured on Contents or Stock. However, it does not include Landscaping. ### 'Business' All activities which You have declared to Us at the start of this Policy and all other activities of a similar or less hazardous nature You later enter into. ### 'Business Hours' Any hours during which You or any principal or any employee entrusted with the care, custody or control of Money is on the Premises for the purpose of Your Business. ### 'Computer Virus' A set of corrupting, harmful or otherwise unauthorised instructions or code including a set of maliciously introduced unauthorised instructions or code, programmatic or otherwise, that propagate themselves through a computer system or network of whatsoever nature. This includes but is not limited to 'Trojan Horses', 'worms' and 'time or logic bombs'. ### 'Contents' All tangible property located in or about the Premises including: - plant - equipment - tenant's improvements - glass, fixtures and fittings if You are legally responsible for insuring them and if their value is not included in the Sum Insured on Buildings or Stock. However, it does not include Landscaping. ### 'Damage' Physical Loss or physical damage unintended and unforeseen by You. ### 'Deferment Period' The period by which the start of the Indemnity Period is delayed. ### 'Destroyed' So damaged by an insured Event that the property, by reason only of that Damage, cannot be repaired. ### 'Electronic Data' Facts, concepts and information converted to a form usable for communications, display, distribution, interpretation or processing by electronic and electromechanical data processing or electronically controlled equipment and includes programmes, software and other coded instructions for such equipment. ### 'EQC Act' The Earthquake Commission Act 1993 or any subsequent amending legislation. ### 'Event' An accident, including continuous or repeated exposure to substantially the same conditions, or series of accidents resulting from, or attributable to, one source or original cause. A series of accidents arising from any one cause during any period of seventy-two (72) consecutive hours will be treated as one Event. ### 'Excess' The amount shown in the Policy or the Schedule to be borne by You in respect of each and every claim, or series of claims, arising out of any one Event. ### 'Hazardous Substance Emergency' The same as that used in the Fire Service Act 1975 or any subsequent amending legislation. ### 'Hidden Gradual Damage' hidden: - mildew - rot, or - other gradual deterioration caused by water that: - leaks - overflows, or - is discharged from any permanent Internal Plumbing at the Premises. ### 'Historic' The same as that used in the Heritage New Zealand Pouhere Taonga Act 2004 and/or the Resource Management Act 1991, or any subsequent amending legislation. ### 'Indemnity Period' The number of months shown in the Schedule during which the results of the Business shall be affected in consequence of the Insured Damage, starting from the date of the Insured Damage. ### 'Initial Period' The number of weeks shown in the Schedule during which the results of the Business shall be affected in consequence of the Insured Damage, starting from the date of the Insured Damage. ### 'Insured Damage' Destruction or Damage which interrupts or interferes with the Business carried on by You at the Premises if: (a) such risks are covered under Section 1; or (b) would have been covered but for the application of an Excess. ### 'Insured Profit' The amount by which the combined total of the Turnover and the amount of the closing Stock shall exceed the combined total of the amount of the opening Stock and the amount of the Uninsured Working Expenses. ### 'Insured Property' Buildings, Contents or Stock at the Premises, if You are legally responsible for insuring them and which are specified as Sums Insured in the Schedule. ### 'Insured Rentals and Management Fees' The money paid or payable to You in respect of rentals, management fees, licence fees and other services recoverable by You from the Premises. ### 'Insured Revenue' The money paid or payable to You for goods supplied or services rendered in the course of the Business at the Premises. ### 'Internal Plumbing' Any water pipe, waste disposal pipe, water cylinder or water storage tank which is permanently connected to and is contained within the walls, floors or roof of the Building, if You are legally responsible for insuring them. It does not include any: - solar heating or rain or grey-water collection systems, or - underfloor heating system. ### 'Landlords Obligations' You or the person who manages the Insured Property on behalf of You must: (a) exercise reasonable care in the selection of tenants by obtaining at least satisfactory verbal or written references, and (b) complete an external and internal inspection of the property at a minimum of three-monthly intervals and upon the change of every tenant, and (c) keep a written record of the outcome of each inspection, and provide a copy to Us if a copy is requested. ### 'Landscaping' Permanently sited trees, plants, hedges, shrubs, grass, paving and ornamentation at the Premises used to adorn or improve the appearance of the Site, except if any of these are Stock of the Business. ### 'Loss' Sudden physical loss or sudden physical Damage unintended and unforeseen by You. ### 'Machine' Any contrivance for the conversion and direction of motion or energy, or for the performance of any electronic process, and includes any protective device in connection with that contrivance. It does not include any permanently installed electrical switchboard and/or reticulation, or any electric motors or starters. ### 'Money' Current coin, bank and currency notes, cheques, traveller's cheques, postal notes, money orders, unused postage stamps, redeemable vouchers and tokens, franking machine credits, and other tangible negotiable instruments. ### 'Natural Disaster' Earthquake, tsunami, volcanic eruption, hydrothermal or geothermal activity or fire following any of these and subterranean fire. ### 'Payroll' The remuneration (including a due proportion of bonuses, leave entitlements, accident compensation levies, superannuation or KiwiSaver contributions) of all employees. ### 'Period of Insurance' The dates and times specified in the Schedule. ### 'Policy' This document together with any Schedule and endorsements. ### 'Portable Electronic Data Equipment' Portable computers, tablets, portable data storage devices, digital cameras, laptops, mobile 'smart' phones, electronic gaming equipment, portable electronic music or entertainment systems and portable video equipment. ### 'Post 1934 Buildings' Any Building, or Insured Property contained within any Building, that was constructed in 1935 or later. ### 'Post 2004 Buildings' Any Building, or Insured Property contained within any Building, that was constructed in 2005 or later. ### 'Pre 1935 Buildings' Any Building, or Insured Property contained within any Building, that was constructed in 1934 or earlier. ### 'Premises' The physical location where the Business is conducted. This includes all Sites shown in the Schedule attaching to and forming part of this Policy that have a common business purpose. ### 'Production Process' Any process of producing, making, treating or servicing goods. ### 'Rate of Insured Profit' The rate of Insured Profit earned on the Turnover during the financial year immediately before the date of the Insured Damage. ### 'Rate of Payroll and Wages' The ratio that Payroll and Wages bear to Turnover during the financial year immediately before the date of the Insured Damage. ### 'Region' The areas of land in the Regions and Districts as defined in the local government New Zealand (LGNZ) Regional and Districts boundaries map. ### 'Regulations' Any statute, regulations, by-laws of any municipal or local authority, rules, Orders-in-Council, codes, municipal or government directives, or conditions of consent under any of them. ### 'Residential Property' That property that is covered by the relevant sections of the EQC Act 1993 or any subsequent amending legislation. There is no cover under this Policy for Residential Land as defined by the EQC Act 1993 or any subsequent amending legislation. ### 'Schedule' The current schedule of insurance which has been issued by Us or on Our behalf. ### 'Shortage in Turnover' The amount by which the Turnover during a period shall in consequence of the Insured Damage fall short of the part of the Standard Turnover which relates to that period. ### 'Site' Any parcel or contiguous parcel of land owned or occupied by You. ### 'Software' Programs, procedures, routines and other coded instructions associated with the operation of electronic, electromechanical or electromagnetic data processing or electronically controlled equipment including any operating system. ### 'Standard Insured Rentals and Management Fees' The Insured Rentals and Management Fees during that period in the twelve (12) months immediately before the date of the Insured Damage which corresponds with the Indemnity Period. ### 'Standard Insured Revenue' The Insured Revenue during that period in the twelve (12) months immediately before the date of the Insured Damage which corresponds with the Indemnity Period. ### 'Standard Turnover' The Turnover during that period in the twelve (12) months immediately before the date of the Insured Damage which corresponds with the Indemnity Period. ### 'Stock' Materials in trade located in or about the Premises if You are legally responsible for insuring them and if their value is not included in the Sum Insured on Buildings or Contents. ### 'Sum Insured' The amount shown for each Site in the Schedule. ### 'Sustainable Products' (a) products that increase the efficiency of the Building relating to the use of energy and/or water (b) rebuilding materials that reduce environmental impacts. They do not include any: - fire protection systems or devices; - security systems or devices; - natural hazard protection. Examples of Sustainable Products include: - double glazing; - solar water heating systems; - environmentally friendly timber; - environmentally friendly carpets and/or paints; - rainwater collection tanks and/or water-efficient interior plumbing; - natural lighting and/or ventilation; - best-practice insulation (as recommended by Standards New Zealand); - wind turbines. ### 'Temporarily Removed' Removed for a particular purpose, with the intention that the property be returned to the place from which it has been removed once that purpose has been served. However, the maximum period for removal is six (6) months. ### 'Terrorism' An act, including but not limited to the use of force or violence and/or threat thereof, by any person or group(s) of persons, whether acting alone or on behalf of or in connection with any organisation(s) or government(s) which from its nature or context is done for, or in connection with, political, religious, ideological, ethnic or similar purposes or reasons, including the intention to influence any government and/or to put the public, or any section of the public, in fear. ### 'Transmission and Distribution Lines' Overhead transmission and distribution lines and their supporting structures or any equipment which includes but is not limited to; wire, cables, poles, pylons, standards, towers, other supporting structures and any equipment of any type which may be attendant to such installations of any description for the purpose of transmission or distribution of electrical power, telephone or telegraphic signals, and all communication signals whether audio or visual. ### 'Turnover' The money paid or payable to You for goods sold and delivered and for services rendered in the course of the Business at the Premises. ### 'Undamaged' Not damaged physically and/or directly by an Event insured under Section 1. ### 'Uninsured Working Expenses' All expenses subtracted in the annual calculation of Insured Profit for the purpose of premium adjustment (which are not insured under Insured Profit). ### 'Vicinity' Within a five (5) kilometre radius of the Premises. ### 'Wages' The remuneration (including bonuses, leave entitlement, accident compensation levies, superannuation, KiwiSaver and other charges pertaining to wages) of all employees other than those whose remunerations are treated as salaries in Your books of accounts. ### 'Works of Art' An object of intrinsic rarity, artistic, historical or cultural value, including but not limited to carvings, paintings, pictures, prints, sculptures, sketches, tapestries, ornaments, antiques, valuable rugs or mats, porcelain, rare glassware and similar property. ### 'We', 'Our', 'QBE' or 'Us' QBE Insurance (Australia) Limited. ### 'You', 'Your' or 'Yours' The person or entity shown in the Schedule as the Insured. This Policy may also use the word 'Insured' to describe You. ## Conditions (applying to all sections) ### 1. Alteration of risk You must notify Us immediately if for any reason other than Loss or Damage there is any change in the nature of occupation or any other material change in the risk to the Insured Property. This includes: (a) any change which increases the risk of Loss or Damage to the Insured Property, or (b) the appointment of a liquidator or receiver, or (c) the cessation of the Business, or (d) the sale of Your interest in the Business. This Policy will cease in respect of the Insured Property unless any material change in risk has been declared to and accepted by Us in writing. However, this Policy will not be prejudiced by: (i) changes to Your Business which are usual or incidental to the Business, or (ii) the cessation of operations or vacancy of any Building for a period not exceeding sixty (60) days, unless agreed to by Us, or (iii) other changes to Your Business without Your knowledge or consent if notice is given to Us immediately You become aware of them and You agree to pay a reasonable additional premium for the increased risk if so required by Us. ### 2. Breach of condition This Policy will not be invalidated or prejudiced if You have breached any of its conditions, but: (a) only if such breach occurs without Your knowledge or consent, and (b) notice is given to Us immediately You become aware of such breach, and (c) You agree to pay a reasonable additional premium if so required by Us. ### 3. Cancellation This Policy may be cancelled: (a) by You at any time by giving notice in writing to Us or Your insurance adviser stating when the cancellation shall be effective, but no later than thirty (30) days after the effective date of such cancellation. If You cancel this Policy, We will be entitled to a pro-rata proportion of the premium (subject to the terms of any adjustment required by the terms of this Policy) for the time during which this Policy has been in force; or (b) by Us at any time by giving written notice to You or Your insurance adviser of Our intention to cancel this Policy. The cancellation will take effect at 4pm on the thirtieth (30th) day after the notice has been delivered. If We cancel this Policy, We will refund to You a pro-rata proportion of the premium (subject to the terms of any adjustment required by the terms of this Policy). ### 4. Currency Where any Sum Insured, sub-limits, Excess or other amounts are stated, these amounts are in New Zealand dollars (NZD) unless expressed otherwise. ### 5. When a claim happens If anything occurs which could give rise to a claim under this Policy, You must: (a) notify Us as soon as practicable, and (b) promptly take all reasonable steps to prevent or diminish further Loss or Damage, and (c) inform the Police as soon as possible if any property is lost or if theft, burglary or malicious damage including arson is suspected, and (d) forward to Us on request: - a completed claim form; - details and/or photos of the Loss or Damage, including business records, information and other evidence as may reasonably be required for investigation and verification of the claim; - copies of notices, statements of claim, and (e) assist Us in all measures which We consider necessary to minimise the Loss and enable Us to investigate, settle or defend the claim. ### 6. Fraud If any claim under this Policy is in any respect fraudulent or if any fraudulent means are used to obtain any benefit under this Policy, then this Policy shall become void or the claim can be declined (at Our sole election) and We shall not be liable to make any payment. ### 7. Goods and services tax Where Goods and Services Tax (GST) is recoverable by Us, the Sum Insured, limits or sub-limits covered by this Policy are exclusive of GST. When a claim happens We will pay the amount of such claim, subject to a maximum of the Sum Insured, plus, where payable, GST at the current rate. However, all Excesses shown in this Policy are inclusive of GST. ### 8. Inspection We shall be permitted but not obligated to inspect any of the Insured Property at any reasonable time and You must provide such information as may be reasonably required by Us in relation to the Premises. This condition or any inspection or report carried out by Us is not an undertaking by Us to determine or warrant that any operation or Premises are safe. ### 9. Material facts The truth of any statements and answers in any: (a) claim form; (b) proposal or underwriting information provided for the purposes of obtaining this insurance or any renewal or extension thereof; by You or on Your behalf shall be a condition precedent to Our liability to make payment under this Policy. ### 10. New Zealand jurisdiction Any disputes arising out of or under this Policy are subject to the law of New Zealand and the New Zealand courts have sole jurisdiction. ### 11. Notices by us (a) Any written notice by Us to Your insurance adviser shall be deemed to be notice to You, and (b) written notice includes sending by electronic means and will be deemed received at the time of transmission. ### 12. Other insurance If, at the time of any claim arising under this Policy, there is other valid and collectable insurance covering all or part of the same Loss, this Policy will apply only to the amount of any Loss over and above such other insurance, whether paid or not. ### 13. Other interests Where You are under an obligation to insure the interest of any person or corporate body having an insurable interest in any of the Insured Property, We will indemnify You and that person or corporate body as if a separate policy had been issued to each. However, (a) We will not be liable to indemnify any person or corporate body whose interest has not been declared to Us by the time indemnity becomes payable; and (b) Our liability will not be increased beyond the amount that would have been payable if this condition had not been incorporated in this Policy. ### 14. Progress claim payments When a claim happens We agree We will make progress claim payments on production of acceptable evidence of insured Loss. However, if the total amount of progress payments exceeds the total amount of the Adjusted Loss, You will immediately refund the difference. ### 15. Reasonable precautions You shall take all reasonable precautions to: (a) avoid or minimise Loss or Damage to Insured Property; (b) maintain all Premises, fittings, appliances, machinery and electronic equipment in safe and sound condition; (c) maintain and keep operational all security, fire protection, warning equipment and installations; (d) comply with all statutory regulatory or local authority requirements pertaining to the ownership occupation and use of the Insured Property. Where any building of Yours is tenanted, You or the person who manages it on Your behalf must: (i) exercise reasonable care in the selection of tenants by obtaining at least satisfactory verbal or written references, and (ii) complete an external and internal inspection of the property at a minimum of three (3) monthly intervals and upon the change of every tenant, and (iii) keep a written record of the outcome of each inspection, and provide a copy to Us if a copy is requested. ### 16. Recovery When We make a payment to You or on Your behalf: (a) We shall receive assignment of all Your rights of recovery; (b) You shall do all that is necessary to assist Us in the exercise of such rights including prosecuting proceedings in Your name at Our expense; (c) any such amount so recovered shall firstly be apportioned to pay any uninsured Losses over and above the Sum Insured or beyond the scope of this Policy, secondly Your Excess and thirdly to reimburse Us to the extent of the total paid by Us including fees and disbursements; (d) if any sum is recovered in addition to the total We and You have paid, it will be apportioned in the ratio that Your uninsured losses and Excess bear to the total paid by Us. ## Exclusions (applying to all sections) ### 1. Cessation of work This Policy does not insure Loss or Damage resulting from total or partial cessation of work unless it is also the result of an Event which is otherwise insured by this Policy. ### 2. Computer virus This Policy does not insure Loss or Damage directly or indirectly caused by or arising from any Computer Virus. ### 3. Confiscation This Policy does not insure any Loss, Damage or interruption in connection with confiscation, requisition or destruction of or Damage to Insured Property by order of government or local authority unless the order is given for the purpose of controlling fire or another peril for which insurance is provided by this Policy. ### 4. Consequential loss This Policy does not insure any consequential losses whatsoever, including: (a) fines, penalties, loss of use of any Insured Property, delays or loss of market, rates, tax, duty or development charges, or (b) any other charge or assessment arising out of capital appreciation which may be payable to comply with any Regulations (except for those consequential losses referred to in Exclusion 6 (Faulty materials and workmanship) below) unless expressly provided by Section 2. ### 5. Electronic data This Policy does not insure: (a) (i) total or partial destruction, distortion, erasure, corruption, alteration, misinterpretation or misappropriation of Electronic Data, or (ii) error in creating, amending, entering, deleting, or using Electronic Data, or (iii) total or partial inability or failure to receive, send, access or use Electronic Data for any time or at all from any cause whatsoever, regardless of any other contributing cause or event whenever it may occur. However, in the event that a peril listed below (being a peril insured by this Policy but for this exclusion) is caused by any of the matters described in (a) above, this Policy, subject to all its provisions, will insure: (b) (i) physical Loss of or Damage or destruction to Insured Property directly caused by such listed peril, and/or (ii) consequential loss insured by this Policy. Further, this exclusion does not apply in the event that a peril listed below (being a peril insured by this Policy but for this exclusion) causes any of the matters described in (a) above: fire, explosion, lightning, windstorm, hail, tornado, cyclone, hurricane, earthquake, volcano, tsunami, flood, freezing, weight of snow, impact by aircraft or other aerial objects dropped therefrom, impact by any road vehicle or animal, bursting overflowing discharging or leaking of water tanks apparatus or pipes, or theft of Electronic Data solely where such theft is accompanied by theft of the computer hardware, firmware, medium, microchip, integrated circuit or similar device containing such Electronic Data. For the purposes of the Basis of Settlement provision in this Policy, a computer system's records includes Electronic Data as defined in this Policy. Any Terrorism exclusion in this Policy or any endorsement thereto prevails over this exclusion. ### 6. Faulty materials and workmanship This Policy does not insure the cost of: (a) repairing or replacing faulty materials; (b) putting right faulty workmanship; (c) putting right work performed to a faulty defective design, plan or design specification; (d) putting right faulty or defective work where the fault or defect results from an error or omission in design plan or design specification; but this exclusion does not apply to any flow-on Loss or Damage occurring as a result of the faulty or defective materials, workmanship, design plan, design specification or work. ### 7. Historic, heritage or cultural heritage significance or value This Policy does not insure any additional costs resulting from Loss or Damage directly or indirectly incurred by You to comply with any Regulations in connection with any Historic, heritage or cultural heritage significance or value of the Insured Property, unless specifically waived and agreed to by Us in writing. ### 8. Illegal substances This Policy does not insure any Loss, Damage, interruption or interference directly or indirectly caused by or arising from, any activity in connection with any drug(s) or illegal substances(s) including pre-cursor chemicals or materials used in or near the Insured Property. This exclusion does not apply to Loss or Damage to Insured Property caused by fire or explosion, including resulting smoke damage. ### 9. Infectious disease or pest management This Policy does not insure any Loss, Damage, interruption or interference in connection with any: (a) notifiable infectious disease under the Health Act 1956; (b) pest management plan under the Biosecurity Act 1993; or any subsequent amending legislation. ### 10. Interruption of supply This Policy does not insure any Loss or Damage to Insured Property or any interruption or interference with Your Business directly or indirectly caused by the interruption of the supply to the Site of electricity, fuel, water, gas, steam or refrigerant. ### 11. Leaky building This Policy does not insure Loss or Damage to a Building or structure directly or indirectly caused by: (a) moisture or water build-up or the penetration of external moisture or water; (b) the action or effects of mould, fungi, mildew, rot, decay, gradual deterioration, micro-organisms, bacteria, protozoa, or any similar or like forms. ### 12. Machinery breakdown In respect of the Machine or vessel to or from which fluid pressure is applied or generated, this Policy does not insure: (a) explosion, overheating, rupture, bursting, cracking, leakage or collapse; (b) mechanical, hydraulic, electrical or electronic breakdown, failure, malfunction or derangement, or cessation of function of any Machine; unless caused by Loss which is not otherwise excluded. ### 13. Natural events This Policy does not insure any Loss or Damage directly or indirectly caused by or arising from: (a) geothermal activity or subterranean fire; (b) landslip, subsidence or erosion of the land; (c) earthquake, tsunami, volcanic eruption, hydrothermal activity, and fire following any of the aforementioned; (d) normal settlement, shrinkage or expansion of Buildings, foundations, walls, pavements, roads or any other structural improvements. ### 14. Nuclear This Policy does not insure any Loss, Damage, liability or expense directly or indirectly caused by or contributed to or arising from: (a) nuclear weapons material; (b) ionising radiation from or contamination by radioactivity from any nuclear fuel or from any nuclear waste or from the combustion of nuclear fuel; (c) the radioactive, toxic, explosive or other hazardous or contaminating properties of any nuclear installation, reactor or other nuclear assembly or nuclear component thereof; (d) any weapon or device employing atomic or nuclear fission and/or fusion or other like reaction or radioactive force or matter; (e) the radioactive, toxic, explosive or other hazardous or contaminating properties of any radioactive matter. ### 15. Pollution and wear and tear This Policy does not insure Loss or Damage directly or indirectly caused by or arising from: (a) fumes, gas, dust, smoke or smuts; (b) normal working, normal maintenance, wear and tear, erosion, corrosion, slowly developing deformation or distortion, or marring or scratching; (c) action of micro-organisms, animal, vermin or insects; (d) the inherent nature of the property or action of light; (e) seepage, pollution or contamination; (f) changes in artificially controlled temperature, or changes in atmosphere or humidity. ### 16. Property This Policy does not insure: (a) property in the course of installation, construction, demolition or erection, or testing following any of them; (b) Money; (c) jewellery, precious stones, furs, precious metals or bullion, other than as Stock or as part of any plant or machinery; (d) motor vehicles, other mechanically or electrically propelled vehicles (including but not limited to railway locomotives and rolling stock), watercraft and aircraft of every kind, and accessories contained in them or on them, other than as Stock of the Business; (e) property in transit other than at Premises owned or occupied by You; (f) property damaged as a result of undergoing any Production Process where the Damage is directly caused by that process; (g) standing timber, growing crops, live plants, livestock or any living creature, trees, hedges, dams, canals, reservoirs (but not tanks), artificial turf, railways, road or railway tunnels, road or railway bridges, docks, piers, wharves, mining property located beneath the surface of the ground, any land including topsoil and backfill, or property located outside New Zealand, unless it is shown in the Schedule. ### 17. Prohibitions and sanctions This Policy does not insure any Loss or Damage or provide any benefit hereunder to the extent that the provision of such cover or the payment of such claim would contravene any sanction, prohibition or restriction under any United Nations resolution or the trade or economic sanctions, laws or regulations of New Zealand, Australia, United Kingdom, the United States of America or the European Union or any other sanction, prohibition or restriction with which We are obligated to comply with. ### 18. Seismic strengthening Notwithstanding any provision in this Policy to the contrary, the amount payable under this Policy in respect of property that is damaged but not Destroyed shall not include any cost incurred in connection with the seismic strengthening of the property to a level greater than it was immediately prior to the occurrence of the Damage. For the avoidance of doubt, You shall bear any costs of compliance with any seismic strengthening codes or Regulations, which result in an increase in the seismic strength or resistance of the property to a level greater than it was immediately prior to the occurrence of the Damage. The fact You must incur seismic strengthening costs in order to obtain a building consent or otherwise in connection with the reinstatement of any damaged property shall be disregarded when assessing or adjusting the Loss. All other provisions in this Policy concerning Reinstatement and the Basis of Settlement continue to apply. ### 19. Terrorism Notwithstanding any provision to the contrary within this insurance or any endorsement thereto it is agreed that this Policy excludes Loss, Damage, death, injury, illness, cost or expense of whatsoever nature directly or indirectly caused by, resulting from or in connection with any act of terrorism regardless of any other cause or event contributing concurrently or in any other sequence to the Loss. This exclusion also excludes Loss, Damage, death, injury, illness, cost or expense of whatsoever nature directly or indirectly caused by, resulting from or in connection with any action taken in controlling, preventing, suppressing or in any way relating to any act of terrorism. ### 20. Transmission and distribution lines This Policy does not insure losses in respect of Transmission and Distribution Lines. However, this exclusion shall not apply in respect of Transmission and Distribution Lines that extend from the public highway to the insured Premises and are the responsibility of the Insured and which are on or within three hundred (300) metres of any insured structure. ### 21. Unexplained disappearances This Policy does not insure any Loss or Damage directly or indirectly caused by or resulting from: (a) unexplained disappearances, shortages revealed only by taking of an inventory or shortages due to clerical or accounting errors; (b) any fraudulent scheme or device, or theft or false pretence practised on or by You or on or by any other person having care of the Insured Property including but not limited to Your employees. ### 22. War This Policy does not insure any Loss or Damage occasioned by or through, or in consequence directly or indirectly of any of the following occurrences, namely: (a) war, invasion, acts of foreign enemies, hostilities or war-like operations (whether war be declared or not), civil war; (b) mutiny, civil commotion assuming the proportions of or amounting to a popular rising, military rising, insurrection, rebellion, revolution, military or usurped power. ### 23. Weather conditions This Policy does not insure Loss or Damage directly or indirectly caused by or arising from exposure to weather conditions where the property is not normally left in the open unless reasonable precautions have been taken to protect the property from those conditions. --- # SECTION 1: MATERIAL DAMAGE ## The indemnity We will indemnify You under Section 1, subject to the terms, conditions and exclusions of this Policy, for Loss or Damage happening to any of the Insured Property during the Period of Insurance. You will be indemnified by payment or, at Our option, by repair or by replacement of the lost or damaged property and by payment of any insured costs. ### 1. Damage caused by a prior event This Policy does not cover Loss, Damage, cost or expense of any nature arising directly or indirectly from an Event predating the start of this Policy ('Prior Damage'). In the event that Prior Damage to the Insured Property has not been repaired or reinstated at the date of an Event during the Period of Insurance: (a) where Insured Property was an actual or constructive total loss prior to the Event during the Period of Insurance, this Policy does not cover Loss, Damage, cost or expense of any nature relating to that Insured Property; (b) in any other case, the amount that would have been required to repair any unrepaired Prior Damage, assessed at the date of settlement of the claim, will be deducted when calculating the Loss, Damage, cost or expense arising directly or indirectly from the Event. ### 2. Damage caused by successive events Where there is Loss or Damage to Insured Property arising directly or indirectly from successive Events during the Period of Insurance, and the Loss or Damage arising directly or indirectly from an earlier Event has not been repaired or reinstated at the date of a subsequent Event, the amount payable under this Policy in respect of each Event shall be calculated as follows: (a) where Insured Property was an actual or constructive total loss prior to the subsequent Event, this Policy does not cover Loss, Damage, and cost or expense of any nature relating to that Insured Property arising directly or indirectly from the subsequent Event; (b) in any other case, the amount that would have been required to repair any unrepaired Damage, arising directly or indirectly from an earlier Event, assessed at the date of settlement of a claim in respect of the subsequent Event, will be deducted when calculating the Loss, Damage, cost or expense arising directly or indirectly from the subsequent Event. ### 3. Maximum amount payable The maximum amount We will pay under this Policy during the Period of Insurance for each insured item is the Sum Insured declared for that item at its location stated in the Schedule; however, (a) We will not pay more than the total Sum Insured for each item as stated in the Schedule during any one Period of Insurance, subject to Automatic Extension 14 (Margins clause for Contents and Stock) (above) applying to Section 1; (b) the limits of liability in this Policy and sub-limits as stated in the Schedule are additional to the Sums Insured, unless otherwise stated in this Policy. ### 4. Reinstatement of amount of insurance When there is Loss to Insured Property, the amount of insurance reduced by Loss or Damage will be automatically reinstated as from the date the Insured Property is either repaired, replaced or reinstated, subject to You undertaking to pay such premium as may be required for any reinstatement. However, there will be no automatic reinstatement of the Sum Insured following Loss or Damage as a result of a Natural Disaster. Any reinstatement of the Natural Disaster Sum Insured will need to be agreed to in writing by Us. ## Basis of settlement We will indemnify You in accordance with the applicable basis of settlement as set out below. ### 1. Reinstatement This clause applies to those items of Insured Property where it is shown in the Schedule to be insured for Reinstatement. Insurance under this clause is subject to the Definitions and Special Provisions set out below, but otherwise to the terms and conditions of this Policy. #### Definitions In this clause, and unless the context requires otherwise: (a) **'Reinstatement'** means: (i) where property is lost or Destroyed, its replacement by an Equivalent Building or by Equivalent Plant, as the case may require; (ii) where property is damaged but not Destroyed, the restoration of the damaged portion of the property to a condition substantially the same as, but not better or more extensive than, its condition when new, using current equivalent materials, skills and techniques that are readily available. (b) **'Equivalent Building'** means: (i) a building or structure which is as nearly as practicable the same as the building or structure lost or Destroyed, using current equivalent materials, skills and techniques that are readily available in the country in which the lost or destroyed building is located and incorporating such alterations as are necessary to comply with any building or other regulations made under or framed in pursuance of any Regulations; (ii) where, as a result of any special circumstances, no building or structure which falls within the scope of paragraph 1 (b) (i) above can be constructed, a building or structure which is designed to perform a purpose or function the same as or equivalent to (but not more extensive than) that performed by the building or structure lost or Destroyed; (iii) where as a result of any special circumstances, no building or structure which falls within the scope of paragraph 1 (b) (i) above is suitable to Your reasonable requirement, then, with Our consent (which will not be unreasonably withheld), a building or structure which is designed to perform a purpose of function suitable to that requirement, but not more extensive than that performed by the building or structure lost or Destroyed. (c) **'Equivalent Plant'** means: any plant or equipment as nearly as practicable the same as or equivalent to the plant or equipment lost or Destroyed, having regard to the current state of technology, and having an equivalent capacity to that of the lost or Destroyed plant or equipment but not greater capacity unless plant or equipment with an equivalent capacity is not available and the replacement plant or equipment has the nearest equivalent capacity. #### Special provisions (a) **Compliance with regulations** The amount payable under this clause will include the cost incurred in Reinstatement which is necessary to comply with any Regulations. However, We will not pay for: (i) work that has already been required of You by notice served prior to the happening of the Loss or Damage; (ii) Undamaged property or Undamaged portions of property; (iii) work required, whether in whole or in part, because the damaged (but not Destroyed) property or any portion of it is an earthquake-prone building as described in the Building Act 2004 or any subsequent amending legislation. These Special Provisions (a) (ii) and (a) (iii) above will apply whether or not the Undamaged property or portion comprises a separate building or structure or a separate item of plant or equipment. (b) **Site of reinstatement** Where property is Destroyed, the work of Reinstatement must be carried out on the same Site; however, the work may be carried out upon another Site only: (i) where Reinstatement on the same Site is not permissible by reason of any Regulations, or (ii) where Reinstatement on the same Site is not suitable to Your reasonable requirement, in which case, and with Our consent (which will not be unreasonably withheld), Reinstatement may be carried out on any alternative Site in the same country as the current Site. In any case where Reinstatement is carried out on any alternative Site then We will not pay more than what would have been the cost of rebuilding on the original Site. (c) **Limitation of amount payable** (i) Where the work of Reinstatement is carried out in terms of Definition 1 (b) (ii) or (b) (iii) of the Equivalent Building definition above, or on any location other than the original location at the same Site, Our liability will not exceed the cost which would have been incurred had Reinstatement been carried out in terms of Definition 1 (b) (i) of the Equivalent Building definition on the original location. (ii) Where the Insured Property is damaged but not Destroyed, Our liability will not exceed the amount We could have been called upon to pay for Reinstatement of the property had the property been Destroyed. (iii) Our liability under this clause in respect of any item of Insured Property will not exceed the Sum Insured in respect of that item. (d) **Circumstances where reinstatement does not apply** The Indemnity basis of settlement will apply in the following circumstances, regardless of the basis of settlement shown in the Schedule to the contrary: (i) if You elect not to reinstate the property; (ii) if the work of Reinstatement is not started and carried out with reasonable despatch; (iii) where a Building, structure or plant is damaged, but not Destroyed, and the repair of the Damage is not permissible by reason of any Regulations, or by reason of the Undamaged portion of the property; (iv) if the Insured Property is awaiting demolition or disposal at the time of Loss or Damage. (e) **Valuation of the property** At the start of each Period of Insurance, and in respect of that period, You should provide Us with a certificate by a suitably qualified quantity surveyor or valuer specifying the estimated cost of Reinstatement of any item of Insured Property to which this clause applies. The certificate should also contain such other estimates and information as We may reasonably require. The sum to be insured under this clause in respect of each item will not be less than the amount of the estimate shown in the certificate in respect of that item. (f) **Rates, taxes and other charges** The amount payable under this clause will not include the amount of any rate, tax, duty, development charge, or any other assessment arising out of capital appreciation, which may be payable in respect of the property by reason of compliance with any Regulations. ### 2. Indemnity This clause applies to those items of Insured Property where they are shown as not insured for Reinstatement. For Property insured for Indemnity Value, the basis of settlement shall be the lesser of: (a) the cost of repairing or replacing that part of the Insured Property damaged, to the condition existing immediately prior to the Loss or Damage; or (b) the cost of rebuilding or repairing the Insured Property to a condition as when new, less due allowance for the age and condition of the Insured Property immediately prior to the Loss or Damage; or (c) the current market value of the Insured Property (having due regard to its condition and state of repair immediately prior to the Loss or Damage); and shall include, where appropriate: (i) the cost of demolition and removal of debris including the removal of Contents; (ii) architects, surveyors, legal and other related expenses. ### 3. Special property The basis of settlement for the following types of Insured Property will apply: (a) **Money** In respect of Money, We will pay the actual value immediately prior to the Loss or Damage. (b) **Portable Electronic Data Equipment** In respect of Portable Electronic Data Equipment, We will pay the replacement cost, if insured for replacement, for items which are less than two (2) years of age from new and where supported by documentation to that effect. Items older than two (2) years, or where no supporting documentation is supplied, will be settled on the following basis, at Our option: (i) the reasonable cost of repairing the Insured Property to the condition it was in immediately preceding the Loss or Damage; or (ii) replacing the Insured Property with similar Portable Electronic Data Equipment in a similar condition; or (iii) the cash amount equal to the current market value of the Insured Property at the time of Loss or Damage. (c) **Records** In respect of Loss of Electronic Data, We will pay the cost of blank media, plus the cost of copying the Electronic Data from back-up or from originals of a previous generation. These costs will not include research and engineering, or any costs of recreating, gathering or assembling the Electronic Data. If the media is not repaired, replaced or restored, We will pay the cost of blank media. However, We do not cover the value of the Electronic Data to You, even if the Electronic Data cannot be recreated, gathered or assembled. (d) **Software** In respect of Loss to Software, We will pay the reasonable cost of restoring, resetting or re-programming the Software that is necessary to operate any electronic equipment or Machine insured under this Policy. (e) **Stock** In respect of property insured under 'Stock' We will pay for: (i) raw materials, supplies and other merchandise not manufactured by You – the replacement cost at the time and place of replacement or, if such property is not replaced, the value at the time and place of the Damage; (ii) material in process of manufacture – the replacement value of the raw materials and the value of labour and other overhead charges expended thereon at the time and place of the Damage; (iii) finished goods – the replacement value of the raw materials and the value of labour and other overhead charges expended thereon before any allowance for profit or the cost of re-stocking such goods, whichever is the lesser; (iv) customers' goods – the Indemnity Value. (f) **Works of Art** We may appoint an independent and suitably qualified valuer or restorer to determine whether the Work of Art can be restored to its pre-damaged condition. If the valuer or restorer determines that the Work of Art: (i) can be economically restored to its pre-damaged condition, the amount payable as indemnity will be the cost of restoration or the Sum Insured of the item, whichever is the lesser; (ii) cannot be economically restored to its pre-damaged condition, the amount payable as indemnity will be the difference between the pre-damaged value or the Sum Insured, whichever is the lesser. Where the Work of Art is an item forming part of a pair or set of items and the lost or damaged item cannot be economically restored to its pre-damaged condition, the item will be deemed totally lost or Destroyed. The amount payable as indemnity will be such proportion of the pre-damaged value of the pair or set as the item bears to the set of items. If a Work of Art has been satisfactorily restored following damage, We will not cover any reduction in market value due solely to the fact of the Work of Art having been damaged and restored. If the Work of Art is alleged not to have been satisfactorily restored, the onus of proof rests with You. ## Automatic extensions (applying to Section 1: Material Damage) Unless otherwise stated, any amounts payable under these Automatic Extensions are additional to the Sums Insured, as stated within 'Maximum Amount Payable' in Section 1, item 3 above. ### 1. Acts of civil authorities This Policy is extended to cover Loss or Damage undertaken at the order of any lawfully constituted civil authority for the prevention or restriction of imminent Loss or imminent Damage to Insured Property. However, this extension excludes such acts of destruction as may be ordered or exercised by the Canterbury Earthquake Recovery Authority (or any equivalent authority) pursuant to the Canterbury Earthquake Recovery Act 2011, or any similar or substituted legislation, except to the extent that You are otherwise indemnified under this Policy. ### 2. Alternative accommodation costs Where any residential accommodation occupied by You or any of Your employees is insured under Section 1 and is rendered uninhabitable by Loss or Damage covered by this Policy, this Policy is extended to include reasonable expenses for alternative accommodation (including the cost of boarding out domestic cats and/or dogs which normally reside there) necessarily incurred by You. However: (a) only if the expenses are not otherwise insured; (b) the period for which the expenses are covered will be limited to the period reasonably required for reinstatement of the affected accommodation; (c) We will be entitled to deduct a reasonable allowance for expenses reduced or avoided in consequence of the affected accommodation being rendered uninhabitable. The most We will pay under this extension is NZD 10,000 for any one Event, up to a maximum of NZD 25,000 in the Period of Insurance, unless otherwise stated in the Schedule. ### 3. Capital additions This Policy is extended to cover property acquired by You situated anywhere in New Zealand during the Period of Insurance. This extension of cover does not apply to: (a) Stock; (b) property of any kind expressly excluded from this insurance; (c) any increase in the value of the property that results from alterations, additions and improvements to existing property. Cover under this extension starts on each acquired property when the risk in the property becomes Your responsibility. This additional cover is subject to You advising Us within three (3) months of the acquisition of the particulars of any such capital additions and the payment of any additional premium We may require. The most We will pay under this extension is NZD 100,000 for any one Event, unless otherwise stated in the Schedule. ### 4. Demolition and other costs This Policy is extended to cover costs necessarily incurred for any of the following purposes in consequence of Loss or Damage insured under this Policy: (a) demolition, dismantling, shoring up or propping up of the Insured Property; (b) disposal of debris (including any kind of solid, liquid or gaseous matter) from the site of the Insured Property damaged and the area immediately adjacent to such site; (c) removal of Insured Property whether damaged or Undamaged. This extension of cover does not include any sums which You become legally liable to pay by way of compensation or other damages consequent upon pollution or contamination of property by any of the debris. The indemnity provided by this extension will not increase Our liability beyond the Sum Insured on the affected property. Where any costs are in connection with the removal of asbestos, the most We will pay is five per cent (5%) of the Site's Sum Insured, or NZD 25,000, whichever is the lesser. ### 5. Disclaimer clause Notwithstanding any provisions of Extension 23 (Release of liability), this Policy will not be prejudiced by any disclaimer clause in any contract entered into by You for the: (a) storage of goods, or (b) leasing of property whether or not the storage and leasing contracts are declared to Us. ### 6. Employees effects This Policy is extended to insure the personal effects of Your directors and employees, but only while: (a) at Premises owned or occupied by You, or (b) being worn, kept, carried or used by the directors or employees acting in the course of their duties of employment when they are in New Zealand or Australia. The personal effects are deemed to be included in the description of Insured Property as if they were owned by You. Unless You are responsible for the Loss or Damage, this extension of cover does not apply to Loss or Damage to the personal effects of any director or employee who is entitled to indemnity for that Loss or Damage under any other policy of insurance. The most We will pay under this extension is NZD 10,000 for any one Event, unless otherwise stated in the Schedule. ### 7. Expediting costs Where a claim is payable under this Policy for the cost of reinstating any Insured Property, We will also indemnify You for such additional costs of express freight, airfreight and overtime labour as are reasonably incurred for the purpose of expediting that reinstatement. The indemnity provided by this extension will not increase Our liability beyond the Sum Insured on the affected property and is subject to Our prior approval before incurring any costs. ### 8. Hazardous substance emergency This Policy will indemnify You for any charge which the New Zealand Fire Service is authorised to make against You in respect of any Hazardous Substance Emergency during the Period of Insurance arising out of or in connection with any Insured Property. The most We will pay under this extension is NZD 100,000 for any one Event, unless otherwise stated in the Schedule. ### 9. Hidden gradual damage Notwithstanding Exclusion 11 (Leaky building) of this Policy, this extension provides cover for: (a) Hidden Gradual Damage to Insured Property discovered by You during the Period of Insurance, and (b) the cost of searching for the source of the Hidden Gradual Damage if We have accepted a claim for the Loss or Damage. The most We will pay under this extension is NZD 5,000 for any one Event, up to a maximum NZD 20,000 in the Period of Insurance, unless otherwise stated in the Schedule. The indemnity provided by this extension will not increase Our liability beyond the Sum Insured on the affected property. ### 10. Illegal substances Notwithstanding Exclusion 15 (Pollution and wear and tear) or Exclusion 8 (Illegal substances) of this policy, this extension provides cover for contamination to any Building and any other Insured Property within that Building shown in the Schedule, caused by the manufacture, supply, storage, distribution or use of any controlled drug as defined in the Misuse of Drugs Act 1975, and/or any pre-cursor chemicals or materials used in any of these activities if: (a) You own the Building, and (b) the Building is: (i) an accommodation Business operated by You and the Damage is caused by a paying guest; or (ii) leased to a tenant and You or person who manages the tenancy on Your behalf has met the Landlord's Obligations. Cover under this extension will only apply when the level of chemical contamination exceeds the guidelines for acceptable indoor surface residues issued by the New Zealand Ministry of Health in its Guidelines for the Remediation of Clandestine Methamphetamine Laboratory Sites or the applicable New Zealand Standard, at the time the claim is notified to Us. This extension will only cover decontamination to the extent required to achieve acceptable post remediation re-occupancy levels for indoor surfaces residues contained in the Guidelines or Standard. The most We will pay under this extension is: (i) NZD 25,000 for any one Event, up to a maximum of NZD 250,000 in the Period of Insurance, or (ii) NZD 250,000 any one Event and in the Period of Insurance, where the premises have a professionally installed and monitored Methminder alarm system that is maintained in working order and monitored by Methminder during the Period of Insurance and at the time the claim is notified to Us. However for Loss or Damage from fire or explosion the most We will pay is the Sum Insured declared in the Schedule. ### 11. Landscaping This Policy is extended to cover Landscaping at the Premises shown in the Schedule following Loss or Damage covered by this Policy, up to a maximum of five per cent (5%) of the Buildings Sum Insured or NZD 25,000, whichever is the lesser, in the Period of Insurance. ### 12. Landslip and subsidence Notwithstanding Exclusion 13 (b) (under 'Natural events') of this Policy, this extension provides cover for Loss or Damage to Insured Property directly or indirectly consequent upon: (a) landslip that is neither gradual nor progressive; (b) subsidence that is neither gradual nor progressive, of land beneath or adjacent to the affected property; (c) the movement (whether by way of sinking, collapsing, falling, sliding or flowing) of ground; but excluding: (i) compaction or erosion of soil; (ii) the normal settling, expansion or shrinking of any building or its foundations; (iii) movement as a result of the water-table drying out from atmospheric or climatic conditions; (iv) actions by the sea, or high water, or tidal wave; (v) Loss or Damage caused by Natural Disaster. The most We will pay under this extension is NZD 100,000 for any one Event, up to a maximum NZD 500,000 in the Period of Insurance, unless otherwise stated in the Schedule. ### 13. Machinery breakdown Notwithstanding Exclusion 12 (Machinery breakdown) of this Policy, this Policy provides cover for Machinery breakdown up to NZD 10,000 for any one Event, subject to a maximum limit of NZD 50,000 applying to the combined Material Damage and Business Interruption Loss unless otherwise stated in the Schedule. ### 14. Margins clause for contents and stock This Policy is extended to increase: (a) Contents at each stated location by five per cent (5%) of the Contents Sum Insured declared at that location or NZD 100,000, whichever is the lesser; (b) Stock at each stated location by five per cent (5%) of the Stock Sum Insured declared at that location or NZD 100,000, whichever is the lesser. However, for both 14 (a) and (b) above, (i) the increases do not apply to Loss or Damage as a result of Natural Disaster; (ii) the maximum amount payable for Contents or Stock is the total Sum Insured shown in the Schedule for each item in the Period of Insurance; (iii) We will not pay any seasonal Stock increase as provided for under Extension 26 (Seasonal stock increase) in addition to the margin under this extension. ### 15. Money This Policy is extended to cover the Loss or Damage of Money for any one Event with limits of liability as follows: | Section | Limit | |---------|-------| | Section A | NZD 25,000 | | Section B | NZD 5,000 | unless otherwise stated in the Schedule. **Section A** means Money when it is: (a) in transit; (b) at Your Premises or sites of contract during Business Hours; (c) in a securely locked burglar-resistant safe or strongroom at Your Premises outside Business Hours. **Section B** means Money when it is: (a) at Your Premises outside Business Hours and not in a securely locked burglar-resistant safe or strongroom; (b) at either Your, Your principal's or Your authorised employee's residence. #### Additional Exclusions This extension is subject to the following additional exclusions: (i) Loss due to errors in receiving payment or paying out; (ii) Loss or Damage occurring while the Money is entrusted to any person other than: - You, or any principal, or any employee or agent of Yours, or - any professional Money carrier; (iii) Loss resulting from payment of Money in exchange for any cheque which is subsequently dishonoured; (iv) Loss occurring while the Money is in an unlocked and unattended vehicle; (v) notwithstanding Exclusion 21 (Unexplained disappearances), cover does not apply to Loss discovered within seventy-two (72) hours (excluding Saturdays, Sundays and public holidays) of the act of theft or fraud; (vi) Loss occurring while the Money is in a burglar-resistant safe or strongroom opened by a key or by use of a combination, either of which has been left at Your Business Premises or sites of contract outside Business Hours, unless such key or combination details have been properly secured. ### 16. Multiple excesses If more than one Excess is payable under this Policy for any claim or series of claims arising from any one Event, then only the highest Excess shall apply. ### 17. Professional fees This Policy is extended to cover all reasonable professional and clerk-of-works fees, salaries and costs necessarily incurred in reinstating Damage to Insured Property which is insured under this Policy. The insured fees, salaries and costs are deemed to be included in the Sum Insured on the affected property. This extension does not apply to fees for preparing claims made under this Policy. The most We will pay under this extension is NZD 20,000 for any one Event, unless otherwise stated in the Schedule. ### 18. Property under construction Notwithstanding Exclusion 16 (a) (under 'Property') of this Policy, this extension provides cover for property in the course of installation, alteration and/or repair to existing property, construction, demolition, erection or testing following any of them if the property is owned or to be owned or occupied by You. The most We will pay under this extension is limited to NZD 100,000, unless otherwise stated in the Schedule. ### 19. Protection costs This Policy is extended to cover Your reasonable temporary costs incurred to directly control or reduce imminent Loss or Damage insured by this Policy. However, this extension does not apply to costs for any permanent loss controlling or reduction device or system. The most We will pay under this extension is NZD 50,000 for any one Event, unless otherwise stated in the Schedule. ### 20. Redundant foundations This Policy is extended to cover Undamaged foundations that are made redundant where the Insured Property resting on them has been Destroyed as a result of Loss or Damage covered under Section 1. If it is not necessary to demolish the foundations in order to reinstate damaged property, and if the presence of the abandoned foundations increases the market value of the Site to which they are fixed, the amount of increase will be treated as salvage in the Adjusted Loss. ### 21. Redundant plant This Policy is extended to cover: (a) plant and machinery made redundant as a result of Loss or Damage to other Insured Property under this Policy; (b) spare parts held exclusively for the lost or damaged plant and machinery, subject to the plant and machinery being part of the same interdependent system or line as the lost or damaged plant and machinery. The basis of settlement for redundant plant and machinery will be its market value, less any salvage recovery. ### 22. Refrigerated goods Notwithstanding Exclusion 10 (Interruption of supply) of this Policy, this extension provides cover for: (a) Loss or Damage to refrigerated goods at the Premises if the Loss results from: (i) breakdown or accidental disconnection of the refrigerating plant, or (ii) sudden failure of power supplied by a public utility to Your Premises, or (iii) the operation of an overload switch, and (b) expenses reasonably incurred to avoid or minimise the Loss or Damage insured by 22 (a) above by transferring the threatened refrigerated goods to alternative storage or by other means. The most We will pay under this extension is NZD 5,000 for any one Event, unless otherwise stated in the Schedule. ### 23. Release of liability This Policy is extended, where You are required by legislation or by contractual agreement to release: (a) the New Zealand Fire Service Commission and any contractor, service provider or agent approved by them to carry out fire alarm monitoring; (b) any fire protection equipment supplier approved by the Insurance Council of New Zealand; (c) Kiwi Rail Holdings Limited; (d) any oil company; or (e) any other party, to an agreement which has been declared to and accepted by Us from liability arising from Loss or Damage insured by this Policy; such release is allowed without prejudice to this insurance and notwithstanding Condition 16 (Recovery) of this Policy. ### 24. Rented premises This Policy is extended to cover Loss or Damage to glass, floor coverings, floating floors, doors and windows including landlord's fixtures and fittings that are not owned by You, but You are responsible for them under the terms of Your lease or rental agreement. The most We will pay under this extension is NZD 5,000 for any one Event, and a maximum of NZD 10,000 in the Period of Insurance.