Hospitality Operators — NZ Commercial Property MDBI
Restaurants, cafes, bars, hotels — high theft + glass + spoilage + kitchen-fire risk.
Hospitality MDBI carries elevated kitchen-fire + flue-grease risk, glass breakage, liquor stock theft, food/beverage spoilage. Cover is placeable across most FCIB-panel insurers; underwriting scrutiny on cleaning logs + fire-suppression compliance.
Risk classes for this industry
- Hospitality — Restaurants, cafes, bars, hotels — high theft + glass + spoilage + liquor + business interruption exposure.
- Accommodation — Hotels, motels, holiday parks, lodges — building + linen + guest-property + BI from room-night interruption.
FCIB panel for this industry
FCIB typically places business through: NZI , QBE , Delta Insurance .
Watch out for
- Kitchen flue-cleaning logs must be current — most wordings make flue-fires un-covered without recent cleaning records.
- Late-night liquor operations have stricter underwriting + higher excesses.
- Food spoilage from cool-room/freezer failure needs explicit cover — not standard MDBI inclusion.
Side-by-side wording extract
NZI
NZI Commercial Property Material Damage
Perils covered
Not on file.
Exclusions
- natural disaster damage (earthquake, subterranean fire, volcanic activity, tsunami, geothermal activity, hydrothermal activity, or fire caused by any of these) — unless Optional Policy Extension Natural Disaster Cover applies
- war, invasion, act of foreign enemy, hostilities or warlike operations (whether war is declared or not), civil war, mutiny, rebellion, revolution, civil commotion assuming the proportions of or amounting to an uprising, insurrection, military or usurped power
- act of terrorism, including controlling, preventing, suppressing, retaliating against, or responding to an act of terrorism
- nuclear — ionising radiation or contamination by radioactivity from any nuclear fuel or nuclear waste from combustion or fission of nuclear fuel; nuclear weapons material
- gradually developing deformation or distortion
- marring or scratching
- gradual deterioration
- rot or mildew
- wear and tear, corrosion or rust
- action of micro-organisms, vermin or pests
- action of light, or inherent nature of the property (including shrinkage, evaporation, loss of weight, change of flavour or colour or texture or finish)
- fumes, gas, dust, smoke or soot
- maintenance of insured property including servicing, cleaning and subsequent testing
- spontaneous combustion
- spontaneous fermentation
- interruption of supply of water, gas, electricity or any fuel to the situation
- total or partial stoppage of work, or interruption or cessation of any process
- change in artificially controlled temperature or atmosphere
- loss only evidenced by unexplained disappearance
- loss only revealed by taking of an inventory
- loss due to clerical or accounting errors
- theft or attempted theft (except as covered by Automatic Policy Extensions Burglary Cover, Theft Cover, Money Cover, Stolen Keys Cover)
- fraudulent scheme or device, or false pretence
- theft, attempted theft or fraud by insured or employee (except as covered by Automatic Policy Extension Money Cover)
- exposure to weather conditions if property is not designed to be left in the open (unless reasonable precautions taken)
- landslip or subsidence (except Automatic Policy Extension Landslip and Subsidence and Optional Extension Natural Disaster Cover)
- erosion or expansion of the ground
- normal settlement, normal shrinkage or expansion of buildings, foundations, walls, pavements, roads and other structural improvements
- settling, warping or cracking caused by earth or other movements (except Optional Policy Extension Natural Disaster Cover)
- building defects — moisture/water build-up or penetration, mould, fungi, mildew, rot, decay, gradual deterioration, micro-organisms caused by non-compliance with NZ Building Code, faulty design/specification, faulty materials or faulty workmanship
- confiscation, nationalisation, requisition or destruction by order of government, public or local authority
- consequential financial loss including delays, loss of market, penalties, rates, taxes, duties, development charges, loss of use of property
- cost of repairing or replacing faulty materials or faulty workmanship or faulty design plan/specification
- cost of altering or modifying refrigeration or air conditioning plant to operate with more ozone friendly refrigerant
- machinery breakdown (except Automatic Policy Extension Electric Motors Cover, Refrigerated Goods, and Optional Policy Extension Machinery Breakdown)
- boiler or pressure vessel — cost of repairing or replacing parts suffering explosion, overheating, rupture, bursting, collapse, cracking or leaking
- loss to electronic data and software from any cause including computer virus (except Automatic Policy Extension Electronic Data and Software)
- infectious diseases — notifiable infectious disease under the Health Act 1956 or notifiable disease under the Biosecurity Act 1993
- seepage, pollution and contamination (except where resulting from sudden and accidental loss to insured property otherwise covered, or Automatic Extension Illegal Substances)
- production processes — loss to insured property while undergoing any production process where any part of that process causes or contributes to the loss
- sanctions — payment contravening UN resolutions or trade/economic sanctions of New Zealand, Australia, United Kingdom, USA or European Union
- property located outside New Zealand
- asbestos removal limited to 5% of site sum insured or $25,000 (lesser) per event
Sublimits
Not on file.
Theft cover
Not on file.
BI indemnity period
Not on file.
QBE
QBE Material Damage & Business Interruption
Perils covered
Not on file.
Exclusions
- total or partial cessation of work unless also resulting from an otherwise insured Event
- Computer Virus — Loss or Damage directly or indirectly caused by or arising from any Computer Virus
- 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)
- 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)
- destruction, distortion, erasure, corruption, alteration, misinterpretation or misappropriation of Electronic Data from any cause
- error in creating, amending, entering, deleting or using Electronic Data
- inability or failure to receive, send, access or use Electronic Data
- faulty materials — cost of repairing or replacing faulty materials
- faulty workmanship — cost of putting right faulty workmanship
- faulty or defective design, plan or design specification
- Historic, heritage or cultural heritage significance or value — additional costs to comply with Regulations in connection with such significance
- 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)
- notifiable infectious disease under the Health Act 1956
- pest management plan under the Biosecurity Act 1993
- 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
- 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
- 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)
- geothermal activity or subterranean fire
- landslip, subsidence or erosion of the land (subject to Extension 12)
- earthquake, tsunami, volcanic eruption, hydrothermal activity, and fire following any of these
- normal settlement, shrinkage or expansion of Buildings, foundations, walls, pavements, roads or other structural improvements
- nuclear weapons material
- ionising radiation from or contamination by radioactivity from nuclear fuel, nuclear waste or combustion of nuclear fuel
- radioactive, toxic, explosive or other hazardous or contaminating properties of any nuclear installation, reactor or nuclear assembly
- any weapon or device employing atomic or nuclear fission and/or fusion or other like reaction or radioactive force or matter
- fumes, gas, dust, smoke or smuts
- normal working, normal maintenance, wear and tear, erosion, corrosion, slowly developing deformation or distortion, marring or scratching
- action of micro-organisms, animal, vermin or insects
- inherent nature of the property or action of light
- seepage, pollution or contamination
- changes in artificially controlled temperature, or changes in atmosphere or humidity
- property in the course of installation, construction, demolition or erection, or testing (subject to Extension 18)
- Money (as property — subject to Extension 15)
- jewellery, precious stones, furs, precious metals or bullion (other than as Stock or part of plant/machinery)
- motor vehicles, other mechanically or electrically propelled vehicles, watercraft and aircraft (other than as Stock)
- property in transit other than at Premises owned or occupied by You
- property damaged as a result of undergoing any Production Process where Damage is directly caused by that process
- 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
- property located outside New Zealand (unless shown in Schedule)
- 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
- seismic strengthening — costs of seismic strengthening to a level greater than immediately prior to Damage for damaged but not Destroyed property
- 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
- 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)
- unexplained disappearances, shortages revealed only by inventory, shortages due to clerical or accounting errors
- fraudulent scheme or device, theft or false pretence practised on or by You or any person having care of Insured Property including employees
- war, invasion, acts of foreign enemies, hostilities or war-like operations (whether war be declared or not), civil war
- mutiny, civil commotion amounting to a popular rising, military rising, insurrection, rebellion, revolution, military or usurped power
- exposure to weather conditions where property is not normally left in the open unless reasonable precautions taken
Sublimits
Not on file.
Theft cover
Not on file.
BI indemnity period
Not on file.
Delta Insurance
Delta NZ Property MDBI (March 2024)
Perils covered
Not on file.
Exclusions
- the applicable Excess stated in the Schedule
- fraudulent misappropriation of Insured Property committed by any employee, partner or director of the Insured
- voluntarily parting with title or possession of any Insured Property if induced to do so by any fraudulent scheme, trick or false pretence
- any consequential economic loss including penalties, loss of use of any property, delays or loss of market
- Loss Or Damage caused solely by exposure to weather conditions to Insured Property not normally left in the open unless reasonable precautions have been taken
- unexplained loss or inventory shortages revealed only at stocktaking or shortages due to accounting or clerical errors
- Loss Or Damage caused by or resulting from normal settling, shrinkage or expansion of Building or foundations
- Loss Or Damage caused by landslip, subsidence, erosion or expansion of the ground
- Loss Or Damage to Insured Property deliberately caused by You
- design fault, error or omission in design, plan or specification
- wear and tear, gradual deterioration, corrosion
- vermin or insects
- change in artificially controlled temperature or atmosphere
- fumes, gas, dust, smoke or smuts, action of light, inherent nature of the property, shrinkage, evaporation, loss of weight, change of flavour, colour, texture or finish, pollution, contamination, and interruption of the supply of water, gas, electricity or fuel
- Loss Or Damage to any plant or equipment directly caused by its own electrical malfunction
- Loss Or Damage to Stock undergoing any production process where the Loss Or Damage is directly caused by the normal operation of that process
- Loss Or Damage directly caused by explosion, rupture, bursting, cracking, leakage, collapse, of steam boilers due to fluid pressure within or without (other than pressure caused by chemical explosion)
- Loss Or Damage directly caused by mechanical or electronic breakdown of machinery or electrical equipment
- any costs incurred for the purpose of seismically strengthening the Insured Property to a performance level greater than its performance level before the Loss Or Damage
- shortages caused by errors in receiving or paying out Money
- fraud or dishonesty of any employee of the Insured unless discovered within 72 hours (excluding Saturday, Sunday and/or Public Holiday) of its occurrence
- payment of Money for or in consideration of a cheque which is subsequently dishonoured
- Money being entrusted to any person other than You, Your employees, Your authorised agents, or a professional Money carrier
- war and warlike operations (general policy exclusions — referenced but full text truncated)
- nuclear (general policy exclusions — referenced but full text truncated)
Sublimits
Not on file.
Theft cover
Not on file.
BI indemnity period
Not on file.
Dual New Zealand
DUAL New Zealand MDBI (04.22)
Perils covered
Not on file.
Exclusions
- Explosion, rupture, bursting, cracking, leaking, or collapse of any steam boiler or pipe or economiser or any other pressure vessel due to fluid pressure within or without (Boilers and Pressure Vessels)
- Mechanical or electrical Breakdown of machinery or electrical equipment (applies only to the machine or equipment in which the Breakdown occurs; resultant Damage to other Insured Property not excluded)
- Insured Property in the course of installation, construction, demolition, erection, or testing following any of them (Contract Works)
- Damage directly resulting from shortages revealed only by the taking of an inventory or shortages due to clerical or accounting errors (Disappearance)
- Any Damage, cost, claim or expense directly or indirectly arising out of or relating to the calculation, comparison, differentiation, sequencing or processing of data involving the date change to the year 2000 or any other date change including leap year calculations (Electronic Date Recognition)
- The cost of repairing or replacing defective materials; putting right defective workmanship; putting right work performed to a defective design plan or design specification (Faulty Materials, Workmanship or Design)
- Damage to the Insured Property, or part immediately affected, caused by or arising out of fumes, dust, smoke or soot (resultant Damage to other Insured Property not excluded)
- Damage directly caused in respect of the Insured Property, or part immediately affected, by total or partial cessation of work, retarding or interruption or cessation of any process (Interruption)
- Damage to Insured Property directly caused by, or resulting from, subsidence, landslip or erosion of land (Land Movement)
- Damage to Insured Property directly caused by, or resulting from, Natural Disaster unless specified with a Sum Insured in the Schedule (Natural Disaster — earthquake, subterranean fire, volcanic eruption, tsunami, geothermal activity, hydrothermal activity)
- Damage to Insured Property, or part immediately affected, caused by or arising out of the nature of the property including shrinkage, evaporation, loss of weight, change in flavour, colour, texture or finish, or the action of light (Nature of the Property)
- Wear and tear, erosion, corrosion, slowly developing deformation or distortion or the consequences of normal working; mould, rot, vermin or insects; cost of normal maintenance (Normal Damage)
- Confiscation, requisition or Damage to Insured Property by lawful order of any government or local authority unless the order is given for the purpose of controlling any insured peril (Order of Authorities)
- Damage caused by or arising out of pollution or contamination unless the pollution or contamination itself is caused by an Accidental event not otherwise excluded (Pollution)
- Jewellery, precious stones, furs, precious metals or bullion other than as Stock of the Business or as part of any plant that forms part of the Contents of the Business (Precious Goods)
- Any Damage, cost or expense directly or indirectly caused by, resulting from or in consequence of any Insured Property where such property has pre-existing damage or deferred maintenance at the inception date of this insurance (Pre-Existing Damage or Deferred Maintenance)
- Damage to Insured Property caused by the normal operation of a process where the Damage is a direct and natural consequence of the process (Process)
- Damage to Insured Property directly resulting from theft by any of the Insured's employees; or theft by any other person unless accompanied by violence or threat of violence or by violent or forcible entry to or exit from the Premises (Theft)
- Damage to Insured Property or part immediately affected, directly or indirectly caused by interruption of the supply to the site of water, gas, electricity or any fuel (Utilities)
- war and warlike operations (General Exclusions — to be confirmed from full General Exclusions text)
- nuclear risks (General Exclusions — to be confirmed from full General Exclusions text)
Sublimits
Not on file.
Theft cover
Not on file.
BI indemnity period
Not on file.
Zurich New Zealand
Zurich Material Damage
Perils covered
Not on file.
Exclusions
- war, invasion, acts of foreign enemies, hostilities or warlike operations (whether war be declared or not), civil war
- mutiny, civil commotion assuming the proportions of or amounting to a popular rising, military rising, insurrection, rebellion, revolution, military or usurped power
- any act of terrorism
- confiscation, requisition, or destruction of or damage to property by order of government or local authority (unless for fire or covered peril control)
- nuclear weapons material
- ionising radiations or contamination by radioactivity from any nuclear fuel or from any nuclear waste from the combustion of nuclear fuel
- any loss caused directly by or arising directly or indirectly from a cyber incident or a cyber act including any action taken in controlling, preventing, suppressing or remediating such event
- total or partial destruction, distortion, erasure, corruption, alteration, misinterpretation or misappropriation of electronic data
- error in creating, amending, entering, deleting or using electronic data
- total or partial inability to use or failure to receive, send or access electronic data for any time or at all
- any loss of use, reduction in functionality, repair, replacement, restoration or reproduction of any electronic data
- natural hazard damage (unless Optional Additional Cover 3.3 applies)
- landslip, subsidence, erosion or expansion of the land (unless Additional Cover 2.31 applies)
- normal settlement, shrinkage or expansion of buildings, foundations, walls, pavements, roads and other structural improvements
- any loss, claim, cost or expense directly or indirectly caused by a notifiable disease under the Health Act 1956
- any pest management plan under the Biosecurity Act 1993
- any communicable disease
- losses in respect of transmission and distribution lines (subject to exception for lines within 300 metres of insured structure that are your responsibility)
- seismic strengthening costs to a level greater than immediately prior to the loss
- loss to any building or structure directly or indirectly caused by failure to contain a material, design, system or reasonable standard of workmanship necessary to prevent or manage moisture or water penetration
- cost of repairing or replacing faulty materials, putting right faulty workmanship, or putting right work performed to a faulty design, plan or specification
- unexplained disappearances; shortages revealed only by inventory; shortages due to clerical or accounting errors, shoplifting, misplacing of information
- your decision to hand over the property to someone else before you have paid for it
- theft of insured property from unlocked or insecure vehicles or insured property left in the open air unless in a secure yard
- theft or fraud by you or by any of your employees or principals
- any fraudulent scheme or device or false pretence practiced on you or on any other person having care of your property
- normal working, normal maintenance, wear and tear, erosion, corrosion, gradual deterioration (including gradual deterioration caused by dampness or penetration of moisture), slowly developing deformation or distortion
- action of micro-organisms (including but not limited to rot and mould), vermin or insects
- the inherent nature of your property (including but not limited to shrinkage, evaporation, loss of weight, change in flavour, colour, texture or finish, action of light)
- dust, fumes, smoke or smut from industrial operations (other than sudden and unforeseen damage), moths, termites or other insects, vermin, rust, oxidation, mildew, mould, wet or dry rot, corrosion, change of colour, dampness, or atmosphere
- loss in connection with a change in any artificially controlled temperature or atmosphere (subject to Additional Cover 2.24 Refrigerated goods)
- property in the course of installation, construction, demolition, erection, or testing (subject to Additional Cover 2.18)
- current coin, bank and currency notes, cheques, traveller's cheques, postal notes, money orders, unused postage stamps, redeemable vouchers and tokens, franking machine credits, credit card vouchers, phone cards or other negotiable instruments in excess of $1,000 per loss per situation (subject to Money clause)
- jewellery, precious stones, furs, precious metals or bullion (other than as stock of the business or as part of any plant)
- motor vehicles and other mechanical or electrically propelled vehicles and accessories (subject to exceptions for unregistered crane/mobile plant and stock)
- watercraft and aircraft of every kind and accessories (except as stock or for auction and not in use or on demonstration)
- property in transit other than at premises owned or occupied by you (subject to Additional Cover 2.35 Transit)
- property damaged as a result of it undergoing any production process where the damage is directly caused by the operation of that process
- standing timber, growing crops, crops harvested but not yet in storage, live plants, trees, hedges (other than those covered under building definition), livestock, dams, canals, reservoirs (but not tanks), road or railway tunnels, road or railway bridges (other than at insured premises), docks, piers, wharves, mining property located beneath the surface (unless specified in schedule)
Sublimits
Not on file.
Theft cover
Not on file.
BI indemnity period
Not on file.
AIG
AIG Steadfast Material Damage
Perils covered
Not on file.
Exclusions
- natural disaster damage (unless Optional Policy Extension A: Natural Disaster Cover applies)
- war, invasion, act of foreign enemy, hostilities or warlike operations (whether war is declared or not), civil war, mutiny, rebellion, revolution, civil commotion assuming the proportions of or amounting to an uprising, insurrection, military or usurped power
- act of terrorism, including controlling, preventing, suppressing, retaliating against, or responding to an act of terrorism
- nuclear — ionising radiation or contamination by radioactivity from any nuclear fuel or nuclear waste; nuclear weapons material
- gradual deterioration
- wear and tear, corrosion or rust
- slowly developing deformation or distortion
- marring or scratching
- rot or mildew
- action of micro-organisms, vermin or pests
- action of light, or inherent nature of the property (including shrinkage, evaporation, loss of weight, change of flavour or colour or texture or finish)
- fumes, gas, dust, smoke or soot (to directly affected property only)
- spontaneous combustion
- spontaneous fermentation
- interruption of supply of water, gas, electricity or fuel to the situation (except Refrigerated Goods extension)
- total or partial stoppage of work, or interruption or cessation of any process
- change in artificially controlled temperature or atmosphere (except Refrigerated Goods extension)
- loss only evidenced by unexplained disappearance
- loss only revealed by taking of an inventory
- loss due to clerical or accounting errors
- theft or attempted theft (except where covered by Burglary, Money, Portable Electronic Equipment, Stolen Keys or Theft Cover extensions)
- fraudulent scheme or device, or false pretence
- theft, attempted theft or fraud by insured or employee (except Money Cover extension)
- exposure to weather conditions if property not designed to be left in the open (unless reasonable precautions taken)
- landslip or subsidence (except Automatic Extension N: Landslip and Subsidence and Optional Extension A: Natural Disaster Cover)
- erosion or expansion of the ground
- normal settlement, normal shrinkage or expansion of buildings, foundations, walls, pavements, roads and other structural improvements
- settling, warping or cracking caused by earth or other movements (except Optional Policy Extension A: Natural Disaster Cover)
- building defects — moisture/water build-up or penetration of external moisture/water; mould, fungi, mildew, rot, decay, gradual deterioration, micro-organisms, bacteria caused by non-compliance with NZ Building Code, faulty design, faulty specification, faulty materials or faulty workmanship
- confiscation, nationalisation, requisition or destruction by order of government, public or local authority
- consequential financial loss including delays, loss of market, penalties, rates, taxes, duties, development charges, loss of use
- cost of repairing or replacing faulty materials or faulty workmanship or faulty design
- altering or modifying refrigeration or air conditioning plant to operate with more ozone friendly refrigerant
- machinery breakdown of a machine (except as provided by Automatic Extension O: Machinery Breakdown and Electric Motors extension)
- boiler or pressure vessel loss through explosion, overheating, rupture, bursting, collapse, cracking or leaking (except Machinery Breakdown extension)
- electronic data and software loss from any cause including computer virus (except Automatic Extension E: Electronic Data and Software)
- seepage, pollution or contamination (unless resulting from sudden and accidental loss otherwise covered)
- notifiable infectious disease under the Health Act 1956 or notifiable disease under the Biosecurity Act 1993
- loss to insured property while undergoing any production process where the process causes or contributes to the loss
- property located outside New Zealand (except Portable Electronic Equipment extension)
- property in transit away from the situation (except specified extensions)
- asbestos removal — capped at 5% of site sum insured or $50,000 whichever is lesser
- sanctions — no coverage where payment would violate any sanctions law or regulation
Sublimits
Not on file.
Theft cover
Not on file.
BI indemnity period
Not on file.