# CommercialBuildingInsurance.co.nz — full Markdown bundle Generated: 2026-05-27T07:27:59.969Z Vertical: commercial-building Counts: 8 insurers · 6 active products · 6 with ingested wording --- # Insurer summaries # AIG — NZ Commercial Building Insurance **Legal entity:** AIG Insurance New Zealand Limited **Primary website:** https://www.aig.co.nz **RBNZ financial strength rating:** (see RBNZ register) **Brand family:** `AIG` ## Active retail products - **AIG Steadfast Material Damage** — `aig/steadfast-mdbi` ## Machine-readable endpoints - Insurer JSON: `/api/insurer/aig/facts.json` - Insurer Markdown (this file): `/api/insurer/aig/summary.md` - Per-product (replace `{product}` with a slug above): - `/api/product/aig/{product}/facts.json` — structured policy facts - `/api/product/aig/{product}/summary.md` — human + LLM readable summary - `/api/product/aig/{product}/wording.md` — full markdown policy wording - `/api/product/aig/{product}/history.json` — version history ## Primary sources - AIG website: https://www.aig.co.nz - Policy wordings (PDFs): see `source_url` field on each product - RBNZ Financial Strength Register: https://www.rbnz.govt.nz/regulation-and-supervision/insurers/financial-strength-ratings ## Citation Cite as: AIG commercial-building-insurance profile, CommercialBuildingInsurance.co.nz, accessed 2026-05-27. Canonical URL: https://commercialbuildinginsurance.co.nz/api/insurer/aig/summary.md License: CC BY 4.0 — attribute https://commercialbuildinginsurance.co.nz --- # Delta Insurance — NZ Commercial Building Insurance **Legal entity:** Delta Insurance New Zealand Limited **Primary website:** https://www.deltainsurance.co.nz **RBNZ financial strength rating:** (see RBNZ register) **Brand family:** `delta` ## Active retail products - **Delta NZ Property MDBI (March 2024)** — `delta-insurance/commercial-md` ## Machine-readable endpoints - Insurer JSON: `/api/insurer/delta-insurance/facts.json` - Insurer Markdown (this file): `/api/insurer/delta-insurance/summary.md` - Per-product (replace `{product}` with a slug above): - `/api/product/delta-insurance/{product}/facts.json` — structured policy facts - `/api/product/delta-insurance/{product}/summary.md` — human + LLM readable summary - `/api/product/delta-insurance/{product}/wording.md` — full markdown policy wording - `/api/product/delta-insurance/{product}/history.json` — version history ## Primary sources - Delta Insurance website: https://www.deltainsurance.co.nz - Policy wordings (PDFs): see `source_url` field on each product - RBNZ Financial Strength Register: https://www.rbnz.govt.nz/regulation-and-supervision/insurers/financial-strength-ratings ## Citation Cite as: Delta Insurance commercial-building-insurance profile, CommercialBuildingInsurance.co.nz, accessed 2026-05-27. Canonical URL: https://commercialbuildinginsurance.co.nz/api/insurer/delta-insurance/summary.md License: CC BY 4.0 — attribute https://commercialbuildinginsurance.co.nz --- # Dual New Zealand — NZ Commercial Building Insurance **Legal entity:** DUAL New Zealand Limited **Primary website:** https://www.dualnewzealand.co.nz **RBNZ financial strength rating:** (see RBNZ register) **Brand family:** `dual` ## Active retail products - **DUAL New Zealand MDBI (04.22)** — `dual-nz/commercial-md` ## Machine-readable endpoints - Insurer JSON: `/api/insurer/dual-nz/facts.json` - Insurer Markdown (this file): `/api/insurer/dual-nz/summary.md` - Per-product (replace `{product}` with a slug above): - `/api/product/dual-nz/{product}/facts.json` — structured policy facts - `/api/product/dual-nz/{product}/summary.md` — human + LLM readable summary - `/api/product/dual-nz/{product}/wording.md` — full markdown policy wording - `/api/product/dual-nz/{product}/history.json` — version history ## Primary sources - Dual New Zealand website: https://www.dualnewzealand.co.nz - Policy wordings (PDFs): see `source_url` field on each product - RBNZ Financial Strength Register: https://www.rbnz.govt.nz/regulation-and-supervision/insurers/financial-strength-ratings ## Citation Cite as: Dual New Zealand commercial-building-insurance profile, CommercialBuildingInsurance.co.nz, accessed 2026-05-27. Canonical URL: https://commercialbuildinginsurance.co.nz/api/insurer/dual-nz/summary.md License: CC BY 4.0 — attribute https://commercialbuildinginsurance.co.nz --- # FMG — NZ Commercial Building Insurance **Legal entity:** Farmers Mutual Group **Primary website:** https://www.fmg.co.nz **RBNZ financial strength rating:** (see RBNZ register) **Brand family:** `FMG` ## Active retail products _None on file._ ## Legacy / closed-to-new products - **FMG Material Damage** — `fmg/commercial-md` (status: off-panel) ## Machine-readable endpoints - Insurer JSON: `/api/insurer/fmg/facts.json` - Insurer Markdown (this file): `/api/insurer/fmg/summary.md` - Per-product (replace `{product}` with a slug above): - `/api/product/fmg/{product}/facts.json` — structured policy facts - `/api/product/fmg/{product}/summary.md` — human + LLM readable summary - `/api/product/fmg/{product}/wording.md` — full markdown policy wording - `/api/product/fmg/{product}/history.json` — version history ## Primary sources - FMG website: https://www.fmg.co.nz - Policy wordings (PDFs): see `source_url` field on each product - RBNZ Financial Strength Register: https://www.rbnz.govt.nz/regulation-and-supervision/insurers/financial-strength-ratings ## Citation Cite as: FMG commercial-building-insurance profile, CommercialBuildingInsurance.co.nz, accessed 2026-05-27. Canonical URL: https://commercialbuildinginsurance.co.nz/api/insurer/fmg/summary.md License: CC BY 4.0 — attribute https://commercialbuildinginsurance.co.nz --- # NZI — NZ Commercial Building Insurance **Legal entity:** IAG New Zealand Limited (NZI brand) **Primary website:** https://www.nzi.co.nz **RBNZ financial strength rating:** (see RBNZ register) **Brand family:** `IAG` ## Active retail products - **NZI Commercial Property Material Damage** — `nzi/commercial-property-md` ## Machine-readable endpoints - Insurer JSON: `/api/insurer/nzi/facts.json` - Insurer Markdown (this file): `/api/insurer/nzi/summary.md` - Per-product (replace `{product}` with a slug above): - `/api/product/nzi/{product}/facts.json` — structured policy facts - `/api/product/nzi/{product}/summary.md` — human + LLM readable summary - `/api/product/nzi/{product}/wording.md` — full markdown policy wording - `/api/product/nzi/{product}/history.json` — version history ## Primary sources - NZI website: https://www.nzi.co.nz - Policy wordings (PDFs): see `source_url` field on each product - RBNZ Financial Strength Register: https://www.rbnz.govt.nz/regulation-and-supervision/insurers/financial-strength-ratings ## Citation Cite as: NZI commercial-building-insurance profile, CommercialBuildingInsurance.co.nz, accessed 2026-05-27. Canonical URL: https://commercialbuildinginsurance.co.nz/api/insurer/nzi/summary.md License: CC BY 4.0 — attribute https://commercialbuildinginsurance.co.nz --- # QBE — NZ Commercial Building Insurance **Legal entity:** QBE Insurance (Australia) Limited (NZ branch) **Primary website:** https://www.qbe.com/nz **RBNZ financial strength rating:** (see RBNZ register) **Brand family:** `QBE` ## Active retail products - **QBE Material Damage & Business Interruption** — `qbe/mdbi` ## Machine-readable endpoints - Insurer JSON: `/api/insurer/qbe/facts.json` - Insurer Markdown (this file): `/api/insurer/qbe/summary.md` - Per-product (replace `{product}` with a slug above): - `/api/product/qbe/{product}/facts.json` — structured policy facts - `/api/product/qbe/{product}/summary.md` — human + LLM readable summary - `/api/product/qbe/{product}/wording.md` — full markdown policy wording - `/api/product/qbe/{product}/history.json` — version history ## Primary sources - QBE website: https://www.qbe.com/nz - Policy wordings (PDFs): see `source_url` field on each product - RBNZ Financial Strength Register: https://www.rbnz.govt.nz/regulation-and-supervision/insurers/financial-strength-ratings ## Citation Cite as: QBE commercial-building-insurance profile, CommercialBuildingInsurance.co.nz, accessed 2026-05-27. Canonical URL: https://commercialbuildinginsurance.co.nz/api/insurer/qbe/summary.md License: CC BY 4.0 — attribute https://commercialbuildinginsurance.co.nz --- # Vero — NZ Commercial Building Insurance **Legal entity:** Vero Insurance New Zealand Limited **Primary website:** https://www.vero.co.nz **RBNZ financial strength rating:** (see RBNZ register) **Brand family:** `Suncorp` ## Active retail products _None on file._ ## Legacy / closed-to-new products - **Vero Steadfast Material Damage** — `vero/commercial-md` (status: off-panel) ## Machine-readable endpoints - Insurer JSON: `/api/insurer/vero/facts.json` - Insurer Markdown (this file): `/api/insurer/vero/summary.md` - Per-product (replace `{product}` with a slug above): - `/api/product/vero/{product}/facts.json` — structured policy facts - `/api/product/vero/{product}/summary.md` — human + LLM readable summary - `/api/product/vero/{product}/wording.md` — full markdown policy wording - `/api/product/vero/{product}/history.json` — version history ## Primary sources - Vero website: https://www.vero.co.nz - Policy wordings (PDFs): see `source_url` field on each product - RBNZ Financial Strength Register: https://www.rbnz.govt.nz/regulation-and-supervision/insurers/financial-strength-ratings ## Citation Cite as: Vero commercial-building-insurance profile, CommercialBuildingInsurance.co.nz, accessed 2026-05-27. Canonical URL: https://commercialbuildinginsurance.co.nz/api/insurer/vero/summary.md License: CC BY 4.0 — attribute https://commercialbuildinginsurance.co.nz --- # Zurich New Zealand — NZ Commercial Building Insurance **Legal entity:** Zurich Australian Insurance Limited (NZ branch) **Primary website:** https://www.zurich.co.nz **RBNZ financial strength rating:** (see RBNZ register) **Brand family:** `zurich` ## Active retail products - **Zurich Material Damage** — `zurich/commercial-md` ## Machine-readable endpoints - Insurer JSON: `/api/insurer/zurich/facts.json` - Insurer Markdown (this file): `/api/insurer/zurich/summary.md` - Per-product (replace `{product}` with a slug above): - `/api/product/zurich/{product}/facts.json` — structured policy facts - `/api/product/zurich/{product}/summary.md` — human + LLM readable summary - `/api/product/zurich/{product}/wording.md` — full markdown policy wording - `/api/product/zurich/{product}/history.json` — version history ## Primary sources - Zurich New Zealand website: https://www.zurich.co.nz - Policy wordings (PDFs): see `source_url` field on each product - RBNZ Financial Strength Register: https://www.rbnz.govt.nz/regulation-and-supervision/insurers/financial-strength-ratings ## Citation Cite as: Zurich New Zealand commercial-building-insurance profile, CommercialBuildingInsurance.co.nz, accessed 2026-05-27. Canonical URL: https://commercialbuildinginsurance.co.nz/api/insurer/zurich/summary.md License: CC BY 4.0 — attribute https://commercialbuildinginsurance.co.nz --- # Product summaries # Delta Insurance — Delta NZ Property MDBI (March 2024) **Vertical:** commercial-building **Status:** active **Wording effective:** 2024-03-01 **Confidence tier:** inferred **Source PDF:** https://deltainsurance.co.nz/hubfs/Documents%20-%20policy%20wordings/DELTA%20NZ_Property%20MDBI_Policy%20Wording_March%202024.pdf ## Bi Basis Gross Profit: rate of Gross Profit multiplied by Reduction In Turnover, plus increase in cost of working (capped at Gross Profit rate applied to reduction avoided), less savings in costs; Gross Revenue: shortfall in Gross Revenue during Indemnity Period plus increase in cost of working (capped at reduction avoided); Gross Rentals: shortfall in Gross Rentals during Indemnity Period plus increase in cost of working; Additional Cost of Working also available as a standalone item ## Exclusions - **0:** the applicable Excess stated in the Schedule - **1:** fraudulent misappropriation of Insured Property committed by any employee, partner or director of the Insured - **2:** voluntarily parting with title or possession of any Insured Property if induced to do so by any fraudulent scheme, trick or false pretence - **3:** any consequential economic loss including penalties, loss of use of any property, delays or loss of market - **4:** 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 - **5:** unexplained loss or inventory shortages revealed only at stocktaking or shortages due to accounting or clerical errors - **6:** Loss Or Damage caused by or resulting from normal settling, shrinkage or expansion of Building or foundations - **7:** Loss Or Damage caused by landslip, subsidence, erosion or expansion of the ground - **8:** Loss Or Damage to Insured Property deliberately caused by You - **9:** design fault, error or omission in design, plan or specification - **10:** wear and tear, gradual deterioration, corrosion - **11:** vermin or insects - **12:** change in artificially controlled temperature or atmosphere - **13:** 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 - **14:** Loss Or Damage to any plant or equipment directly caused by its own electrical malfunction - **15:** Loss Or Damage to Stock undergoing any production process where the Loss Or Damage is directly caused by the normal operation of that process - **16:** 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) - **17:** Loss Or Damage directly caused by mechanical or electronic breakdown of machinery or electrical equipment - **18:** 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 - **19:** shortages caused by errors in receiving or paying out Money - **20:** fraud or dishonesty of any employee of the Insured unless discovered within 72 hours (excluding Saturday, Sunday and/or Public Holiday) of its occurrence - **21:** payment of Money for or in consideration of a cheque which is subsequently dishonoured - **22:** Money being entrusted to any person other than You, Your employees, Your authorised agents, or a professional Money carrier - **23:** war and warlike operations (general policy exclusions — referenced but full text truncated) - **24:** nuclear (general policy exclusions — referenced but full text truncated) ## Flood Cover covered as an Event under the insuring clause — not explicitly excluded; no specific sub-limit stated in wording (sub-limits if any would be in Schedule) ## Glass Cover not specifically addressed as a standalone cover in the wording; glass forming part of a Building would be covered under the general insuring clause as Insured Property subject to Loss Or Damage caused by an Event ## Claims Basis occurrence — cover is for Loss Or Damage occurring during the Period Of Insurance ## Excess Basis per Event — the applicable Excess stated in the Schedule is deducted from any payment in respect of each claim or series of claims arising from any one Event; where an Event occurs over more than 72 consecutive hours, one excess is deducted per 72 consecutive hour period ## Flood Excess applicable excess as stated in the Schedule; one excess per 72 consecutive hour period for events extending beyond 72 hours ## Valuation Basis Indemnity Value for buildings, contents and other property (default); Replacement Value (reinstatement) where elected and shown in Schedule; replacement value for stock; replacement value for electronic items up to 3 years old ## Earthquake Cover covered for Natural Disaster Damage (defined as earthquake, subterranean fire, volcanic eruption, tsunami, geothermal activity, hydrothermal activity or fire occasioned by or through or in consequence of any of these); for residential buildings and personal property as defined under Natural Hazards Insurance Act 2023, cover is excess of Natural Hazards Commission (NHC) payment; no automatic reinstatement of sum insured after Natural Disaster Damage unless agreed in writing ## Earthquake Excess applicable excess as stated in the Schedule; where an Event occurs over more than 72 consecutive hours, one excess is deducted per 72 consecutive hour period; specific earthquake excess rate not stated in wording — refer to Schedule ## Territorial Scope New Zealand — Insured Property at the Situation as stated in the Schedule; temporary removal cover applies within New Zealand (clause 5.25); transit cover within New Zealand and internationally until goods pass over ship's rail or through air transport loading doors for overseas transit; suppliers and customers extensions limited to New Zealand premises ## Bomb Terrorism Cover not explicitly addressed or excluded in wording — no terrorism pool reference; general exclusions do not specifically exclude terrorism; refer to Schedule and general policy exclusions ## Bi Waiting Period Hours 24 ## Indemnity Value Available y — default basis for buildings, contents and other property not specifically scheduled for reinstatement; defined as cost of repair to pre-loss condition, or replacement with property of similar condition/age/specification, or market value immediately prior to loss ## Machinery Breakdown Cover limited automatic cover included: mechanical or electrical breakdown of motors not exceeding 5kw covered up to Sub-Limit shown in Schedule (clause 5.14); computer/electronic systems breakdown covered up to Sub-Limit shown in Schedule (clause 5.5); general mechanical/electronic breakdown of machinery excluded under exclusion 7.13 except where caused by an external Event ## Average Coinsurance Clause not explicitly stated as a co-insurance or average clause in the wording; Special Provision 2 requires the Sum Insured to be not less than the estimated cost of reinstatement as certified by an acceptable valuer, adjusted at renewal within two months of renewal date ## Replacement Value Available y — available where reinstatement is elected and shown in Schedule; applies to buildings (equivalent building using modern materials), contents and plant (equivalent property); electronic items replacement value where no more than 3 years old; no payment beyond Indemnity Value if reinstatement not commenced promptly or elected ## Reinstatement Of Sum Insured automatic reinstatement after partial loss from the date Insured Property is fully repaired, replaced or reinstated; pro-rata premium payable; no automatic reinstatement following Natural Disaster Damage unless specifically agreed in writing by insurer; applies to both Material Damage and Business Interruption sections ## Sum Insured Inflation Adjustment none — no automatic inflation adjustment basis stated in wording; sum insured may be adjusted at renewal if valuation is provided within two months of renewal date ## Volcanic Tsunami Landslide Cover volcanic eruption and tsunami covered as Natural Disaster Damage; landslip and subsidence covered up to Sub-Limit shown in Schedule under additional cover clause 5.13 (overrides exclusion 7.8); erosion excluded under exclusion 7.8 unless covered by 5.13 ## Machine-readable endpoints - Facts JSON: `/api/product/delta-insurance/commercial-md/facts.json` - Summary Markdown (this file): `/api/product/delta-insurance/commercial-md/summary.md` - Full wording: `/api/product/delta-insurance/commercial-md/wording.md` - Version history: `/api/product/delta-insurance/commercial-md/history.json` ## Citation Cite as: Delta Insurance Delta NZ Property MDBI (March 2024) (NZ), CommercialBuildingInsurance.co.nz, accessed 2026-05-27. Canonical URL: https://commercialbuildinginsurance.co.nz/api/product/delta-insurance/commercial-md/summary.md License: CC BY 4.0 — attribute https://commercialbuildinginsurance.co.nz --- # Dual New Zealand — DUAL New Zealand MDBI (04.22) **Vertical:** commercial-building **Status:** active **Wording effective:** 2022-04-01 **Confidence tier:** inferred **Source PDF:** https://nz.dualinsurance.com/hubfs/DUAL%20ANZ/DUAL%20New%20Zealand/NZ%20policy%20wording/DUAL-NZ-MDBI-Wording.pdf ## Bi Basis Item A: Loss of Gross Profit — sum produced by applying the Rate of Gross Profit to the reduction in Turnover during the Indemnity Period, plus increase in cost of working necessarily and reasonably incurred to avoid or diminish the reduction in Turnover, less savings; Item B: Loss of Gross Revenue — amount by which Gross Revenue falls short during the Indemnity Period plus increase in cost of working, less savings; Item C: Loss of Rental Income — amount by which Rental Income falls short during the Indemnity Period plus increase in cost of working, less savings; Item D: Wages (Dual Basis) — Rate of Wages applied to Shortage in Turnover during Indemnity Period plus increase in cost of working ## Exclusions - **0:** 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) - **1:** 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) - **2:** Insured Property in the course of installation, construction, demolition, erection, or testing following any of them (Contract Works) - **3:** Damage directly resulting from shortages revealed only by the taking of an inventory or shortages due to clerical or accounting errors (Disappearance) - **4:** 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) - **5:** 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) - **6:** 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) - **7:** 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) - **8:** Damage to Insured Property directly caused by, or resulting from, subsidence, landslip or erosion of land (Land Movement) - **9:** 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) - **10:** 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) - **11:** 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) - **12:** 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) - **13:** 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) - **14:** 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) - **15:** 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) - **16:** 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) - **17:** 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) - **18:** 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) - **19:** war and warlike operations (General Exclusions — to be confirmed from full General Exclusions text) - **20:** nuclear risks (General Exclusions — to be confirmed from full General Exclusions text) ## Flood Cover covered as part of the general 'Accidental physical loss or damage' insuring clause under Section 1, subject to exclusions; flood is also a named cause under the Transit (Limited Cover) Extension; no specific flood sub-limit stated in the wording (limits set in Schedule) ## Glass Cover Buildings definition includes fixed signs and lettering; accidental physical damage to Buildings is covered under Section 1; no separate glass-specific extension or sublimit identified in the wording ## Claims Basis occurrence — cover applies to Damage that 'happens' during the Period of Insurance ## Excess Basis per Event — 'Event' means loss or series of losses directly occasioned by and arising from one and the same event; where an Event occurs over more than 72 consecutive hours, one Deductible is deducted for every 72 consecutive hour period ## Flood Excess standard Deductible as stated in the Schedule applies; specific flood excess not separately stated in the wording ## Valuation Basis replacement value for Buildings, Contents and Other Property where designated RV, FRV or SRV in the Schedule; indemnity value for property designated IV and for Machinery Breakdown items 10 years of age or older ## Earthquake Cover excluded by default under Exclusion 10 (Natural Disaster exclusion) unless specified with a Sum Insured in the Schedule; available as Extension 16 (Natural Disaster) covering earthquake, subterranean fire, volcanic eruption, tsunami, geothermal activity, hydrothermal activity or fire occasioned by any of these; where residential property is insured and compulsory EQC cover under the Earthquake Commission Act 1993 applies, Insurers' liability is limited to the difference between the EQC amount paid or payable and the applicable Sum Insured ## Earthquake Excess Deductible as stated in the Schedule applies; for EQC-covered residential property the applicable Deductible is the difference between the Deductible stated in the Schedule and the amount recoverable from EQC, but only if the Schedule Deductible exceeds the EQC payment — specific percentage or minimum dollar amount not stated in the wording (set in Schedule) ## Territorial Scope within the territory or locations named in the Schedule ('Territory' defined as such); Temporary Removal Extension covers anywhere in the Territory including transit but not international transit; Transit extensions limited to within the Territory including transit between ports of the same country but not international transit ## Bomb Terrorism Cover not explicitly addressed in the wording — no terrorism pool reference or specific terrorism sublimit found ## Indemnity Value Available y — applies to Buildings and Other Property designated 'IV' (Indemnity Value) in the Schedule, and to Machinery Breakdown items 10 years of age or older; defined as 'the value of Insured Property at the time of Damage, being an amount sufficient to place the Insured back in the same financial position to that immediately prior to the Damage' ## Machinery Breakdown Cover available as optional Extension 14 (Machinery Breakdown) subject to a Sum Insured specified in the Schedule; covers mechanical, electrical or electronic breakdown of machinery or electrical equipment being Insured Property; settlement on replacement cost for items less than 10 years old and Indemnity Value for items 10 years or older; requires maintenance in accordance with manufacturer's instructions as a condition of cover ## Average Coinsurance Clause Margin Clause (Condition e) applies to Contents, Stock and Other Property — Insurers' liability will not exceed 110% of the Sum Insured for each category at each Premise where more than one Premise is listed; this Margin Clause does not apply to Natural Disaster Damage; no general average/co-insurance penalty clause identified in the wording ## Replacement Value Available y — applies to Buildings, Contents and Other Property designated 'RV' (Reinstatement Value), 'FRV' (Functional Replacement Value) or 'SRV' (Specified Replacement Value) in the Schedule; for Machinery Breakdown, replacement cost applies to items less than 10 years old only; no depreciation reduction where Damage is repaired under Machinery Breakdown extension ## Reinstatement Of Sum Insured not explicitly stated in the wording — no automatic reinstatement clause or sublimit on number of reinstatements found ## Sum Insured Inflation Adjustment none — no automatic inflation adjustment clause found in the wording ## Volcanic Tsunami Landslide Cover volcanic eruption, tsunami, geothermal and hydrothermal activity are part of the defined 'Natural Disaster' and excluded by default under Exclusion 10 unless Extension 16 (Natural Disaster) is specified with a Sum Insured in the Schedule; landslip is excluded under Exclusion 9 (Land Movement) by default but available via Extension 12 (Landslip) subject to a Schedule Sum Insured and the greater of the Schedule Deductible or $10,000; subsidence available via Extension 26 subject to Schedule Sum Insured and the greater of the Schedule Deductible or $10,000 ## Machine-readable endpoints - Facts JSON: `/api/product/dual-nz/commercial-md/facts.json` - Summary Markdown (this file): `/api/product/dual-nz/commercial-md/summary.md` - Full wording: `/api/product/dual-nz/commercial-md/wording.md` - Version history: `/api/product/dual-nz/commercial-md/history.json` ## Citation Cite as: Dual New Zealand DUAL New Zealand MDBI (04.22) (NZ), CommercialBuildingInsurance.co.nz, accessed 2026-05-27. Canonical URL: https://commercialbuildinginsurance.co.nz/api/product/dual-nz/commercial-md/summary.md License: CC BY 4.0 — attribute https://commercialbuildinginsurance.co.nz --- # Zurich New Zealand — Zurich Material Damage **Vertical:** commercial-building **Status:** active **Wording effective:** 2026-01-01 **Confidence tier:** inferred **Source PDF:** https://edge.sitecorecloud.io/zurichinsur0b40-zwpaustrali7d46-prod0760-b10c/media/project/zurich-headless/shared/content/dam/nz-documents/property-insurance/material-damage-business-interruption-insurance/marerial-damage-policy.pdf ## Exclusions - **0:** war, invasion, acts of foreign enemies, hostilities or warlike operations (whether war be declared or not), civil war - **1:** mutiny, civil commotion assuming the proportions of or amounting to a popular rising, military rising, insurrection, rebellion, revolution, military or usurped power - **2:** any act of terrorism - **3:** confiscation, requisition, or destruction of or damage to property by order of government or local authority (unless for fire or covered peril control) - **4:** nuclear weapons material - **5:** ionising radiations or contamination by radioactivity from any nuclear fuel or from any nuclear waste from the combustion of nuclear fuel - **6:** 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 - **7:** total or partial destruction, distortion, erasure, corruption, alteration, misinterpretation or misappropriation of electronic data - **8:** error in creating, amending, entering, deleting or using electronic data - **9:** total or partial inability to use or failure to receive, send or access electronic data for any time or at all - **10:** any loss of use, reduction in functionality, repair, replacement, restoration or reproduction of any electronic data - **11:** natural hazard damage (unless Optional Additional Cover 3.3 applies) - **12:** landslip, subsidence, erosion or expansion of the land (unless Additional Cover 2.31 applies) - **13:** normal settlement, shrinkage or expansion of buildings, foundations, walls, pavements, roads and other structural improvements - **14:** any loss, claim, cost or expense directly or indirectly caused by a notifiable disease under the Health Act 1956 - **15:** any pest management plan under the Biosecurity Act 1993 - **16:** any communicable disease - **17:** losses in respect of transmission and distribution lines (subject to exception for lines within 300 metres of insured structure that are your responsibility) - **18:** seismic strengthening costs to a level greater than immediately prior to the loss - **19:** 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 - **20:** cost of repairing or replacing faulty materials, putting right faulty workmanship, or putting right work performed to a faulty design, plan or specification - **21:** unexplained disappearances; shortages revealed only by inventory; shortages due to clerical or accounting errors, shoplifting, misplacing of information - **22:** your decision to hand over the property to someone else before you have paid for it - **23:** theft of insured property from unlocked or insecure vehicles or insured property left in the open air unless in a secure yard - **24:** theft or fraud by you or by any of your employees or principals - **25:** any fraudulent scheme or device or false pretence practiced on you or on any other person having care of your property - **26:** 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 - **27:** action of micro-organisms (including but not limited to rot and mould), vermin or insects - **28:** 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) - **29:** 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 - **30:** loss in connection with a change in any artificially controlled temperature or atmosphere (subject to Additional Cover 2.24 Refrigerated goods) - **31:** property in the course of installation, construction, demolition, erection, or testing (subject to Additional Cover 2.18) - **32:** 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) - **33:** jewellery, precious stones, furs, precious metals or bullion (other than as stock of the business or as part of any plant) - **34:** motor vehicles and other mechanical or electrically propelled vehicles and accessories (subject to exceptions for unregistered crane/mobile plant and stock) - **35:** watercraft and aircraft of every kind and accessories (except as stock or for auction and not in use or on demonstration) - **36:** property in transit other than at premises owned or occupied by you (subject to Additional Cover 2.35 Transit) - **37:** property damaged as a result of it undergoing any production process where the damage is directly caused by the operation of that process - **38:** 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) ## Flood Cover covered — flood is a listed peril under the Electronic Data exclusion carve-back and under Additional Cover 2.7 Electronic Data; flood is referenced as an insured peril throughout the policy; no specific sub-limit stated for flood in the wording ## Glass Cover covered under contents definition which extends to include landlord's glass, fixtures and fittings; Additional Cover 2.34 Theft covers theft including glass; no specific standalone glass sublimit stated in the wording ## Claims Basis occurrence — cover applies if 'during the period of insurance, a loss happens to any of your property at the situation' ## Excess Basis per event — 'excess means the first amount you bear in relation to each loss'; an event is defined as continuous or repeated exposure to substantially the same conditions or a series of events from one source/cause; a series of events from any one cause during any 72 consecutive hours is treated as one event ## Flood Excess standard per-event excess as stated in the schedule applies; no separate flood-specific excess is stated in the wording ## Valuation Basis replacement value for property designated in the schedule as being insured for replacement value; indemnity value (market value) for all other property; specific bases apply to customers' goods (market value), stock (replacement cost of raw materials/labour or market value), electric motors >7 years (depreciated replacement cost), portable tools of trade (age-dependent replacement or market value) ## Earthquake Cover excluded by default under Exclusion 5 (natural hazard damage excluded unless explicitly stated in the policy and/or specifically shown in the schedule); available as Optional Additional Cover 3.3 Natural Disaster (Earthquake etc) — extends cover to loss directly or indirectly caused by natural hazard (earthquake, hydrothermal/geothermal activity, subterranean fire, volcanic activity, tsunami, or fire caused by any of these perils) or measures taken under proper authority to avoid spreading or reduce consequences; only applies to property for which indemnity is not provided under the NHI Act 2023; for NHI residential property, liability is limited to costs in excess of NHI Act cover ## Earthquake Excess the excess to be paid by you is the amount or percentage shown in the schedule; for NHI residential property the minimum site deductible amount specified in the schedule applies to each and every claim; the excess under this policy only applies to the extent it exceeds the amount of cover (including excess) under the NHI Act ## Territorial Scope New Zealand — 'situation means the situations described in the schedule located in New Zealand'; portable tools of trade covered anywhere in the world while away from business premises; transit cover applies anywhere in New Zealand including between New Zealand ports; general average cover applies between places in New Zealand by sea or air; temporary removal cover applies to any place in New Zealand ## Standard Excess Nzd the amount stated in the schedule; portable tools of trade excess is $1,000 per event (unless different amount in schedule); subsidence/landslip excess is $20,000 per event (or schedule amount); theft excess is $2,500 per event (unless stated otherwise in schedule); portable tools away from premises excess is $1,000 per event ## Bomb Terrorism Cover excluded — Exclusion 1 excludes any act of terrorism (including use or threat of force or violence for political, religious, ideological, ethnic or similar purposes) and war/warlike operations; no terrorism pool reference or sublimit provided ## Indemnity Value Available y — indemnity value (value of property insured at the time of loss, sufficient to place you back in the same financial position to that immediately prior to the loss) applies to all property not designated for replacement value, including customers' goods, employees' and directors' property, and machinery breakdown claims where equipment is >10 years old ## Machinery Breakdown Cover optional — available under Optional Additional Cover 3.2 Machinery Breakdown (must be shown in schedule); extends cover to mechanical, electrical or electronic breakdown of machinery or electrical equipment; settlement on replacement cost if <10 years old, indemnity value if >10 years old; excludes belts, ropes, tyres, glass, ceramics, wear and tear, gradual deterioration, alterations/maintenance; limit as specified in schedule ## Replacement Value Available y — available only for property designated in the schedule as insured for replacement value, subject to the Reinstatement clause; specific age limits apply to electric motors (7 years), portable tools/electric equipment (5 years), portable computers/video projectors (2 years), other portable tools (10 years); modern equivalent materials, skills and techniques; must incorporate alterations to comply with any Act of Parliament or Regulation in force at date of loss ## Reinstatement Of Sum Insured partial automatic reinstatement for contents and stock only: sum insured for contents/stock at any situation is increased by 10% or $100,000 (whichever is lesser) during the period of insurance; this increase does not apply to Natural Disaster (Earthquake) optional cover; no general automatic reinstatement clause after partial loss is stated ## Sum Insured Inflation Adjustment none — no automatic inflation adjustment basis is stated in the policy wording ## Volcanic Tsunami Landslide Cover volcanic activity and tsunami are included within the definition of 'natural hazard' and are covered under Optional Additional Cover 3.3 Natural Disaster (Earthquake etc) where that cover is activated in the schedule; landslip/subsidence is excluded by default under Exclusion 5 but covered under Additional Cover 2.31 Subsidence or Landslip (sudden and unforeseen subsidence or landslip) subject to a $500,000 limit per event and a $20,000 excess (or schedule amount); land removal limited to 5 metres from external walls up to $10,000 ## Machine-readable endpoints - Facts JSON: `/api/product/zurich/commercial-md/facts.json` - Summary Markdown (this file): `/api/product/zurich/commercial-md/summary.md` - Full wording: `/api/product/zurich/commercial-md/wording.md` - Version history: `/api/product/zurich/commercial-md/history.json` ## Citation Cite as: Zurich New Zealand Zurich Material Damage (NZ), CommercialBuildingInsurance.co.nz, accessed 2026-05-27. Canonical URL: https://commercialbuildinginsurance.co.nz/api/product/zurich/commercial-md/summary.md License: CC BY 4.0 — attribute https://commercialbuildinginsurance.co.nz --- # NZI — NZI Commercial Property Material Damage **Vertical:** commercial-building **Status:** active **Wording effective:** 2020-12-01 **Confidence tier:** inferred **Source PDF:** https://www.insurancepartners.co.nz/site_files/24864/upload_files/NZISteadfastMaterialDamagePolicyWordingCSR-STE(12.2020)withendorsements2.2024(005).pdf?dl=1 ## Exclusions - **0:** 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 - **1:** 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 - **2:** act of terrorism, including controlling, preventing, suppressing, retaliating against, or responding to an act of terrorism - **3:** nuclear — ionising radiation or contamination by radioactivity from any nuclear fuel or nuclear waste from combustion or fission of nuclear fuel; nuclear weapons material - **4:** gradually developing deformation or distortion - **5:** marring or scratching - **6:** gradual deterioration - **7:** rot or mildew - **8:** wear and tear, corrosion or rust - **9:** action of micro-organisms, vermin or pests - **10:** action of light, or inherent nature of the property (including shrinkage, evaporation, loss of weight, change of flavour or colour or texture or finish) - **11:** fumes, gas, dust, smoke or soot - **12:** maintenance of insured property including servicing, cleaning and subsequent testing - **13:** spontaneous combustion - **14:** spontaneous fermentation - **15:** interruption of supply of water, gas, electricity or any fuel to the situation - **16:** total or partial stoppage of work, or interruption or cessation of any process - **17:** change in artificially controlled temperature or atmosphere - **18:** loss only evidenced by unexplained disappearance - **19:** loss only revealed by taking of an inventory - **20:** loss due to clerical or accounting errors - **21:** theft or attempted theft (except as covered by Automatic Policy Extensions Burglary Cover, Theft Cover, Money Cover, Stolen Keys Cover) - **22:** fraudulent scheme or device, or false pretence - **23:** theft, attempted theft or fraud by insured or employee (except as covered by Automatic Policy Extension Money Cover) - **24:** exposure to weather conditions if property is not designed to be left in the open (unless reasonable precautions taken) - **25:** landslip or subsidence (except Automatic Policy Extension Landslip and Subsidence and Optional Extension Natural Disaster Cover) - **26:** erosion or expansion of the ground - **27:** normal settlement, normal shrinkage or expansion of buildings, foundations, walls, pavements, roads and other structural improvements - **28:** settling, warping or cracking caused by earth or other movements (except Optional Policy Extension Natural Disaster Cover) - **29:** 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 - **30:** confiscation, nationalisation, requisition or destruction by order of government, public or local authority - **31:** consequential financial loss including delays, loss of market, penalties, rates, taxes, duties, development charges, loss of use of property - **32:** cost of repairing or replacing faulty materials or faulty workmanship or faulty design plan/specification - **33:** cost of altering or modifying refrigeration or air conditioning plant to operate with more ozone friendly refrigerant - **34:** machinery breakdown (except Automatic Policy Extension Electric Motors Cover, Refrigerated Goods, and Optional Policy Extension Machinery Breakdown) - **35:** boiler or pressure vessel — cost of repairing or replacing parts suffering explosion, overheating, rupture, bursting, collapse, cracking or leaking - **36:** loss to electronic data and software from any cause including computer virus (except Automatic Policy Extension Electronic Data and Software) - **37:** infectious diseases — notifiable infectious disease under the Health Act 1956 or notifiable disease under the Biosecurity Act 1993 - **38:** seepage, pollution and contamination (except where resulting from sudden and accidental loss to insured property otherwise covered, or Automatic Extension Illegal Substances) - **39:** production processes — loss to insured property while undergoing any production process where any part of that process causes or contributes to the loss - **40:** sanctions — payment contravening UN resolutions or trade/economic sanctions of New Zealand, Australia, United Kingdom, USA or European Union - **41:** property located outside New Zealand - **42:** asbestos removal limited to 5% of site sum insured or $25,000 (lesser) per event ## Flood Cover Covered under the base policy as flood is not specifically excluded and the insuring clause covers 'any sudden and accidental loss to insured property at the situation'; landslip/subsidence caused by earthquake, subterranean fire, volcanic activity, tsunami, geothermal activity or hydrothermal activity is excluded from the Landslip and Subsidence extension. No specific flood sub-limit stated in the wording (schedule may vary) ## Glass Cover Covered as insured property (contents/building) under the base policy for sudden and accidental loss. Automatic Policy Extension Tenanted Premises covers glass, doors and windows, light fittings/power points and floor coverings not owned by insured but for which insured is responsible under lease, up to $20,000 per annual period unless schedule shows different amount ## Claims Basis occurrence ## Excess Basis Per event — the applicable excess is deducted from the amount payable for each event. Where an event occurs over more than 72 consecutive hours, one excess is deducted for every 72 consecutive hour period. Where a single event causes loss to property insured under this and any other policy, only the highest applicable individual policy excess applies (except for natural disaster damage) ## Flood Excess Standard per-event excess applies unless a specific excess is shown in the schedule ## Valuation Basis Reinstatement (replacement value) or indemnity value, depending on basis of settlement shown in the schedule; certain property types (e.g. redundant plant/spare parts, customers' goods, works of art, portable electronic equipment over 3 years old, limited lifetime construction materials) settled on indemnity basis regardless of schedule election ## Earthquake Cover Excluded under base policy — natural disaster damage (defined as loss resulting directly or indirectly from earthquake, subterranean fire, volcanic activity, tsunami, geothermal activity, hydrothermal activity, or fire caused by any of these) is only covered under Optional Policy Extension Natural Disaster Cover. Where insured property is covered wholly or in part by the EQC Act, this policy only pays in excess of the maximum EQC entitlement ## Earthquake Excess Natural disaster excess shown in the schedule applies to the aggregate of all natural disaster damage claims under this policy (and the business interruption policy if applicable) arising from any one event at each common site. The natural disaster excess is reduced by any payment made by the Earthquake Commission except for payments for land ## Territorial Scope New Zealand — insured property must be at the situation (a location in New Zealand shown in the schedule); capital additions, employee effects, temporary removal and transit extensions also limited to New Zealand; property located outside New Zealand is excluded ## Bomb Terrorism Cover Excluded — 'This policy does not insure any loss in connection with an act of terrorism, including in connection with controlling, preventing, suppressing, retaliating against, or responding to an act of terrorism.' No terrorism pool reference or sublimit stated ## Indemnity Value Available y — where schedule shows 'indemnity': pay cost to replace with property of similar condition, age and specification as immediately prior to loss, or cost to repair to condition immediately prior to loss, or indemnity value of damaged part. Also applies as fallback when reinstatement conditions are not met ## Machinery Breakdown Cover Optional — cover available under Optional Policy Extension Machinery Breakdown for machines with pre-breakdown value not greater than $25,000 (or amount shown in schedule). Machinery breakdown is otherwise excluded from the base policy ## Replacement Value Available y — where schedule shows 'reinstatement': lost/destroyed property replaced to condition substantially the same as when new; damaged property repaired to standard reasonably equivalent to condition and quality when new. Reinstatement basis does not apply if repair/replacement not commenced within reasonable period, not actually carried out, property awaiting demolition, or repair not permissible under regulations ## Reinstatement Of Sum Insured After a partial loss the sum insured is reduced by the amount of the loss and reinstated progressively as repair/replacement progresses (if automatically covered during repair) or only upon completion (if not automatically covered). No reinstatement following natural disaster damage unless agreed in writing by insurer. Additional premium may be required for reinstatement ## Sum Insured Inflation Adjustment none — no automatic CPI or percentage inflation adjustment described in the wording; capital additions cover provides up to 10% of sum insured or $100,000 (lesser) for acquisitions/improvements notified within 90 days ## Volcanic Tsunami Landslide Cover Volcanic activity, tsunami, geothermal activity and hydrothermal activity are defined as natural disaster damage and excluded from the base policy — covered only under Optional Policy Extension Natural Disaster Cover. Landslip and subsidence (not caused by natural disaster perils) covered under Automatic Policy Extension Landslip and Subsidence up to $500,000 per situation per annual period with a minimum $10,000 excess per event; landslip/subsidence caused by earthquake, subterranean fire, volcanic activity, tsunami, geothermal activity or hydrothermal activity is excluded from that extension ## Machine-readable endpoints - Facts JSON: `/api/product/nzi/commercial-property-md/facts.json` - Summary Markdown (this file): `/api/product/nzi/commercial-property-md/summary.md` - Full wording: `/api/product/nzi/commercial-property-md/wording.md` - Version history: `/api/product/nzi/commercial-property-md/history.json` ## Citation Cite as: NZI NZI Commercial Property Material Damage (NZ), CommercialBuildingInsurance.co.nz, accessed 2026-05-27. Canonical URL: https://commercialbuildinginsurance.co.nz/api/product/nzi/commercial-property-md/summary.md License: CC BY 4.0 — attribute https://commercialbuildinginsurance.co.nz --- # QBE — QBE Material Damage & Business Interruption **Vertical:** commercial-building **Status:** active **Wording effective:** 2026-05-26 **Confidence tier:** inferred **Source PDF:** https://www.qbe.com/media/qbe/apac/new-zealand/document-listing/2025/02/27/03/33/qbe-mdbi-policy-mdbi-0718qia.pdf ## Bi Basis Gross profit basis (Insured Profit defined as excess of combined Turnover plus closing Stock over combined opening Stock plus Uninsured Working Expenses); also covers Insured Revenue (money paid or payable for goods/services) and Insured Rentals and Management Fees; Shortage in Turnover is the trigger measure; Payroll cover also available; Standard Turnover is the 12-month pre-loss comparator period ## Exclusions - **0:** total or partial cessation of work unless also resulting from an otherwise insured Event - **1:** Computer Virus — Loss or Damage directly or indirectly caused by or arising from any Computer Virus - **2:** confiscation, requisition or destruction of or Damage to Insured Property by order of government or local authority (except for fire or another insured peril control purpose) - **3:** consequential losses including fines, penalties, loss of use, delays, loss of market, rates, tax, duty or development charges, and charges arising out of capital appreciation to comply with Regulations (unless under Section 2) - **4:** destruction, distortion, erasure, corruption, alteration, misinterpretation or misappropriation of Electronic Data from any cause - **5:** error in creating, amending, entering, deleting or using Electronic Data - **6:** inability or failure to receive, send, access or use Electronic Data - **7:** faulty materials — cost of repairing or replacing faulty materials - **8:** faulty workmanship — cost of putting right faulty workmanship - **9:** faulty or defective design, plan or design specification - **10:** Historic, heritage or cultural heritage significance or value — additional costs to comply with Regulations in connection with such significance - **11:** illegal substances — Loss, Damage, interruption or interference directly or indirectly caused by or arising from any activity in connection with drugs or illegal substances (except fire or explosion) - **12:** notifiable infectious disease under the Health Act 1956 - **13:** pest management plan under the Biosecurity Act 1993 - **14:** interruption of supply — Loss or Damage or business interruption directly or indirectly caused by interruption of supply of electricity, fuel, water, gas, steam or refrigerant - **15:** leaky building — Loss or Damage caused by moisture or water build-up, penetration of external moisture or water, or action of mould, fungi, mildew, rot, decay, gradual deterioration, micro-organisms, bacteria, protozoa - **16:** machinery breakdown — explosion, overheating, rupture, bursting, cracking, leakage or collapse of Machine; mechanical, hydraulic, electrical or electronic breakdown, failure, malfunction or derangement of any Machine (unless caused by non-excluded loss) - **17:** geothermal activity or subterranean fire - **18:** landslip, subsidence or erosion of the land (subject to Extension 12) - **19:** earthquake, tsunami, volcanic eruption, hydrothermal activity, and fire following any of these - **20:** normal settlement, shrinkage or expansion of Buildings, foundations, walls, pavements, roads or other structural improvements - **21:** nuclear weapons material - **22:** ionising radiation from or contamination by radioactivity from nuclear fuel, nuclear waste or combustion of nuclear fuel - **23:** radioactive, toxic, explosive or other hazardous or contaminating properties of any nuclear installation, reactor or nuclear assembly - **24:** any weapon or device employing atomic or nuclear fission and/or fusion or other like reaction or radioactive force or matter - **25:** fumes, gas, dust, smoke or smuts - **26:** normal working, normal maintenance, wear and tear, erosion, corrosion, slowly developing deformation or distortion, marring or scratching - **27:** action of micro-organisms, animal, vermin or insects - **28:** inherent nature of the property or action of light - **29:** seepage, pollution or contamination - **30:** changes in artificially controlled temperature, or changes in atmosphere or humidity - **31:** property in the course of installation, construction, demolition or erection, or testing (subject to Extension 18) - **32:** Money (as property — subject to Extension 15) - **33:** jewellery, precious stones, furs, precious metals or bullion (other than as Stock or part of plant/machinery) - **34:** motor vehicles, other mechanically or electrically propelled vehicles, watercraft and aircraft (other than as Stock) - **35:** property in transit other than at Premises owned or occupied by You - **36:** property damaged as a result of undergoing any Production Process where Damage is directly caused by that process - **37:** standing timber, growing crops, live plants, livestock or any living creature, trees, hedges, dams, canals, reservoirs, artificial turf, railways, road or railway tunnels, bridges, docks, piers, wharves, mining property beneath the surface, any land including topsoil and backfill - **38:** property located outside New Zealand (unless shown in Schedule) - **39:** sanctions — Loss or Damage or benefit that would contravene any UN resolution or trade/economic sanctions laws of New Zealand, Australia, United Kingdom, United States of America or European Union - **40:** seismic strengthening — costs of seismic strengthening to a level greater than immediately prior to Damage for damaged but not Destroyed property - **41:** terrorism — Loss, Damage, death, injury, illness, cost or expense directly or indirectly caused by, resulting from or in connection with any act of Terrorism; and actions taken in controlling, preventing or suppressing any act of terrorism - **42:** Transmission and Distribution Lines (except lines from public highway to insured Premises within 300 metres of an insured structure that are the responsibility of the Insured) - **43:** unexplained disappearances, shortages revealed only by inventory, shortages due to clerical or accounting errors - **44:** fraudulent scheme or device, theft or false pretence practised on or by You or any person having care of Insured Property including employees - **45:** war, invasion, acts of foreign enemies, hostilities or war-like operations (whether war be declared or not), civil war - **46:** mutiny, civil commotion amounting to a popular rising, military rising, insurrection, rebellion, revolution, military or usurped power - **47:** exposure to weather conditions where property is not normally left in the open unless reasonable precautions taken ## Flood Cover Not explicitly addressed as a covered or excluded peril in the main body of the truncated wording; flood is referenced in the Electronic Data exclusion carve-back list as a named peril. No specific flood sub-limit identified in the wording provided. ## Glass Cover Covered as part of Contents definition (glass, fixtures and fittings). Extension 24 (Rented premises) covers glass in rented premises up to NZD 5,000 per event / NZD 10,000 per Period of Insurance. Fixed signs and lettering covered under Appurtenances definition. ## Claims Basis occurrence — Policy insures Loss or Damage happening during the Period of Insurance; Event defined as accident or series of accidents from one source/original cause with 72-hour aggregation ## Excess Basis per event — Excess is the amount shown in the Policy or Schedule to be borne by You in respect of each and every claim, or series of claims, arising out of any one Event; Extension 16 (Multiple excesses) provides that where more than one Excess is payable for any claim or series of claims arising from any one Event, only the highest Excess shall apply ## Flood Excess Not specified in policy wording — Schedule-dependent ## Valuation Basis Reinstatement value (replacement cost new) where shown in Schedule; Indemnity value (lesser of repair cost, replacement less depreciation, or market value) where not shown for Reinstatement; special bases apply to Stock, Portable Electronic Data Equipment, Works of Art, Money, Software and Records ## Earthquake Cover Excluded under Exclusion 13 (Natural events) — earthquake, tsunami, volcanic eruption, hydrothermal activity and fire following any of these are excluded. EQC Act 1993 referenced in definitions (Residential Property, EQC Act). No automatic reinstatement of Natural Disaster Sum Insured. Cover may be available only if separately agreed/scheduled. ## Earthquake Excess Not specified in policy wording — Schedule-dependent ## Territorial Scope New Zealand — Insured Property must be located at Premises shown in Schedule; Extension 3 (Capital additions) applies to property in New Zealand; Employees effects covered in New Zealand or Australia; property located outside New Zealand excluded under Exclusion 16(g) unless shown in Schedule ## Bomb Terrorism Cover Excluded — Exclusion 19 (Terrorism) excludes all loss, damage, death, injury, illness, cost or expense directly or indirectly caused by, resulting from or in connection with any act of Terrorism regardless of any other contributing cause; also excludes actions taken in controlling, preventing or suppressing any act of terrorism. No terrorism pool reference found. ## Indemnity Value Available y — applies to items not shown in Schedule as insured for Reinstatement; settled as lesser of: (a) cost of repair/replacement to pre-loss condition, (b) cost of rebuild/repair as new less allowance for age and condition, or (c) current market value having regard to condition and state of repair; also applies as fallback under Reinstatement clause in defined circumstances ## Machinery Breakdown Cover Excluded under Exclusion 12 (Machinery breakdown) for explosion, overheating, rupture, bursting, cracking, leakage, collapse, and mechanical/hydraulic/electrical/electronic breakdown of any Machine, unless caused by a loss not otherwise excluded. Partially reinstated by Extension 13 (Machinery breakdown) up to NZD 10,000 per event with a combined MD and BI maximum of NZD 50,000, unless otherwise stated in Schedule. ## Average Coinsurance Clause Not found in truncated policy wording — Extension 5 (Valuation of property) under Reinstatement clause requires sum insured to be not less than quantity surveyor/valuer estimate of reinstatement cost but no explicit average/coinsurance penalty clause was identified in the provided text ## Replacement Value Available y — applies where item is shown in Schedule as insured for Reinstatement; means replacement/restoration to condition as when new using current equivalent materials; Indemnity basis applies if insured elects not to reinstate, work not started with reasonable despatch, repair not permissible by regulation, or property awaiting demolition ## Reinstatement Of Sum Insured Automatic reinstatement of Sum Insured after partial loss from date property is repaired, replaced or reinstated, subject to payment of additional premium. No automatic reinstatement following Natural Disaster loss — any reinstatement of Natural Disaster Sum Insured must be agreed in writing by insurer. ## Professional Fees Sublimit Nzd 20000 ## Sum Insured Inflation Adjustment none — no automatic inflation/CPI adjustment clause found in policy wording ## Volcanic Tsunami Landslide Cover Volcanic eruption, tsunami and hydrothermal activity excluded under Exclusion 13 (Natural events) as Natural Disaster perils. Landslip/subsidence excluded under Exclusion 13(b) but partially reinstated by Extension 12 (Landslip and subsidence) up to NZD 100,000 per event / NZD 500,000 per Period of Insurance for non-gradual, non-progressive landslip/subsidence not caused by Natural Disaster. ## Machine-readable endpoints - Facts JSON: `/api/product/qbe/mdbi/facts.json` - Summary Markdown (this file): `/api/product/qbe/mdbi/summary.md` - Full wording: `/api/product/qbe/mdbi/wording.md` - Version history: `/api/product/qbe/mdbi/history.json` ## Citation Cite as: QBE QBE Material Damage & Business Interruption (NZ), CommercialBuildingInsurance.co.nz, accessed 2026-05-27. Canonical URL: https://commercialbuildinginsurance.co.nz/api/product/qbe/mdbi/summary.md License: CC BY 4.0 — attribute https://commercialbuildinginsurance.co.nz --- # AIG — AIG Steadfast Material Damage **Vertical:** commercial-building **Status:** active **Wording effective:** 2026-05-26 **Confidence tier:** inferred **Source PDF:** https://www.baileysinsurance.co.nz/images/documentation/AIG-Steadfast-Material-Damage-Policy-Wording-62016.pdf ## Exclusions - **0:** natural disaster damage (unless Optional Policy Extension A: Natural Disaster Cover applies) - **1:** 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 - **2:** act of terrorism, including controlling, preventing, suppressing, retaliating against, or responding to an act of terrorism - **3:** nuclear — ionising radiation or contamination by radioactivity from any nuclear fuel or nuclear waste; nuclear weapons material - **4:** gradual deterioration - **5:** wear and tear, corrosion or rust - **6:** slowly developing deformation or distortion - **7:** marring or scratching - **8:** rot or mildew - **9:** action of micro-organisms, vermin or pests - **10:** action of light, or inherent nature of the property (including shrinkage, evaporation, loss of weight, change of flavour or colour or texture or finish) - **11:** fumes, gas, dust, smoke or soot (to directly affected property only) - **12:** spontaneous combustion - **13:** spontaneous fermentation - **14:** interruption of supply of water, gas, electricity or fuel to the situation (except Refrigerated Goods extension) - **15:** total or partial stoppage of work, or interruption or cessation of any process - **16:** change in artificially controlled temperature or atmosphere (except Refrigerated Goods extension) - **17:** loss only evidenced by unexplained disappearance - **18:** loss only revealed by taking of an inventory - **19:** loss due to clerical or accounting errors - **20:** theft or attempted theft (except where covered by Burglary, Money, Portable Electronic Equipment, Stolen Keys or Theft Cover extensions) - **21:** fraudulent scheme or device, or false pretence - **22:** theft, attempted theft or fraud by insured or employee (except Money Cover extension) - **23:** exposure to weather conditions if property not designed to be left in the open (unless reasonable precautions taken) - **24:** landslip or subsidence (except Automatic Extension N: Landslip and Subsidence and Optional Extension A: Natural Disaster Cover) - **25:** erosion or expansion of the ground - **26:** normal settlement, normal shrinkage or expansion of buildings, foundations, walls, pavements, roads and other structural improvements - **27:** settling, warping or cracking caused by earth or other movements (except Optional Policy Extension A: Natural Disaster Cover) - **28:** 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 - **29:** confiscation, nationalisation, requisition or destruction by order of government, public or local authority - **30:** consequential financial loss including delays, loss of market, penalties, rates, taxes, duties, development charges, loss of use - **31:** cost of repairing or replacing faulty materials or faulty workmanship or faulty design - **32:** altering or modifying refrigeration or air conditioning plant to operate with more ozone friendly refrigerant - **33:** machinery breakdown of a machine (except as provided by Automatic Extension O: Machinery Breakdown and Electric Motors extension) - **34:** boiler or pressure vessel loss through explosion, overheating, rupture, bursting, collapse, cracking or leaking (except Machinery Breakdown extension) - **35:** electronic data and software loss from any cause including computer virus (except Automatic Extension E: Electronic Data and Software) - **36:** seepage, pollution or contamination (unless resulting from sudden and accidental loss otherwise covered) - **37:** notifiable infectious disease under the Health Act 1956 or notifiable disease under the Biosecurity Act 1993 - **38:** loss to insured property while undergoing any production process where the process causes or contributes to the loss - **39:** property located outside New Zealand (except Portable Electronic Equipment extension) - **40:** property in transit away from the situation (except specified extensions) - **41:** asbestos removal — capped at 5% of site sum insured or $50,000 whichever is lesser - **42:** sanctions — no coverage where payment would violate any sanctions law or regulation ## Flood Cover not explicitly referenced as a named peril; covered under the broad 'sudden and accidental loss' insuring clause unless excluded; natural disaster flood would require Optional Policy Extension A: Natural Disaster Cover; no specific flood sub-limit identified in wording ## Glass Cover covered under Automatic Policy Extension BB (Tenanted Premises) for glass, doors and windows not owned by insured but for which insured is responsible under lease agreement; general accidental breakage of glass covered under broad 'sudden and accidental loss' insuring clause subject to policy terms ## Claims Basis occurrence — cover applies to 'sudden and accidental loss to insured property' occurring during the period of insurance ## Excess Basis per event — 'The applicable excess shown in this Material Damage Policy will be deducted from the amount payable for each event. Where an event occurs over a period of more than 72 consecutive hours, one excess will be deducted for every 72 consecutive hour period.' Single highest excess applies where one event causes loss across multiple AIG policies, except for natural disaster damage. ## Flood Excess not separately specified in wording; standard per-event excess applies unless natural disaster, in which case natural disaster excess per schedule applies ## Valuation Basis replacement value (reinstatement) where schedule shows reinstatement; indemnity value where schedule shows indemnity; specific indemnity rules apply to certain property types including stock, works of art, electronic data, software, portable electronic equipment over 2 years old, and limited lifetime construction materials ## Earthquake Cover excluded under main policy (Exclusion K: Natural Disaster); available only as Optional Policy Extension A — Natural Disaster Cover; where EQC Cover applies, this policy pays only in excess of the maximum EQC Act entitlement; EQC entitlement (whether or not actually paid) is deducted from the Maximum Amount Payable ## Earthquake Excess natural disaster damage excess shown in schedule per region; excess is reduced by any payment made by the Earthquake Commission except for payments for land ## Territorial Scope New Zealand — insured property must be at the situation (as shown in schedule); limited extensions for portable electronic equipment worldwide while in transit; temporary removal cover within New Zealand; transit cover beginning and ending within New Zealand; unspecified locations within New Zealand; property located outside New Zealand otherwise excluded ## Bomb Terrorism Cover terrorism excluded — 'This policy does not insure any loss in connection with an act of terrorism, including in connection with controlling, preventing, suppressing, retaliating against, or responding to an act of terrorism.' No terrorism pool reference or sublimit. ## Indemnity Value Available y — where schedule specifies indemnity basis; also applies by default when reinstatement conditions are not met; indemnity = cost to replace with property of similar condition, age and specification, or cost to repair to pre-loss condition, or indemnity value of damaged part ## Machinery Breakdown Cover automatic — Automatic Policy Extension O: Machinery Breakdown; covers accidental loss from mechanical or electrical breakdown, derangement or failure of any machine, boilers, pressure vessels, refrigerating or air conditioning vessels; limit $100,000 any one event for property damage; additional $100,000 any one event for Business Interruption following machinery breakdown (where BI policy held with AIG) ## Replacement Value Available y — where schedule specifies reinstatement basis; insured property replaced to condition substantially the same as when new (buildings/contents); indemnity applies if repair/replacement not commenced within reasonable period, or actual costs not yet incurred, or replacement not permissible under regulations ## Reinstatement Of Sum Insured automatic reinstatement after partial loss only where insured property is automatically covered during repair/replacement, progressively reinstated at rate of repair/replacement progress; if not automatically covered during repair, reinstated only once repair/replacement completed; sum insured does not reinstate following natural disaster damage unless agreed in writing by insurer; additional premium may be required ## Sum Insured Inflation Adjustment none — no automatic inflation adjustment clause identified in wording ## Volcanic Tsunami Landslide Cover volcanic activity, tsunami and geothermal/hydrothermal activity are excluded from Automatic Policy Extension N (Landslip and Subsidence); natural disaster cover for these perils available only via Optional Policy Extension A: Natural Disaster Cover; landslip/subsidence (non-natural-disaster) covered under Automatic Extension N up to $250,000 per situation per annual period with $10,000 minimum excess ## Machine-readable endpoints - Facts JSON: `/api/product/aig/steadfast-mdbi/facts.json` - Summary Markdown (this file): `/api/product/aig/steadfast-mdbi/summary.md` - Full wording: `/api/product/aig/steadfast-mdbi/wording.md` - Version history: `/api/product/aig/steadfast-mdbi/history.json` ## Citation Cite as: AIG AIG Steadfast Material Damage (NZ), CommercialBuildingInsurance.co.nz, accessed 2026-05-27. Canonical URL: https://commercialbuildinginsurance.co.nz/api/product/aig/steadfast-mdbi/summary.md License: CC BY 4.0 — attribute https://commercialbuildinginsurance.co.nz --- # Source wordings (verbatim) ## Delta Insurance — Delta NZ Property MDBI (March 2024) > _Markdown transcription of Delta Insurance Delta NZ Property MDBI (March 2024) policy wording, effective 2024-03-01. Source: https://deltainsurance.co.nz/hubfs/Documents%20-%20policy%20wordings/DELTA%20NZ_Property%20MDBI_Policy%20Wording_March%202024.pdf_ --- Material Damage & Business Interruption Insurance Policy wording 1 of 22 Delta Property 10/20 R0324 © Delta Insurance New Zealand Ltd. All rights reserved. Material Damage & Business Interruption Insurance Policy wording Contents 1.0 Our promise to you ...................................................................................................................................................................................................................................................................................................................................... 3 2.0 Important information ............................................................................................................................................................................................................................................................................................................................. 3 3.0 Your obligations under this policy.............................................................................................................................................................................................................................................................................................. 4 Section 1: Material Damage ............................................................................................................................................................................................................................ 5 4.0 Insuring clause – what you are covered for .................................................................................................................................................................................................................................................................. 5 5.0 Additional cover to Section 1 ............................................................................................................................................................................................................................................................................................................. 5 6.0 Basis of settlement – how we will pay you ....................................................................................................................................................................................................................................................................... 8 Definitions .................................................................................................................................................................................................................................................................... 9 Special Provisions .................................................................................................................................................................................................................................................... 9 7.0 Policy exclusions applying to Material Damage Section .............................................................................................................................................................................................................................. 10 Section 2: Business Interruption .................................................................................................................................................................................................................... 11 8.0 Insuring clause – what you are covered for .................................................................................................................................................................................................................................................................. 11 9.0 Additional cover to Section 2 ..........................................................................................................................................................................................................................................................................................................13 10.0 Basis of settlement – how we will pay you ..................................................................................................................................................................................................................................................................... 14 11.0 General definitions ..................................................................................................................................................................................................................................................................................................................................... 15 12.0 Definitions applying only to Business Interruption Section ........................................................................................................................................................................................................................ 16 13.0 General policy exclusions ................................................................................................................................................................................................................................................................................................................... 17 14.0 General policy conditions .................................................................................................................................................................................................................................................................................................................. 18 Lloyd’s Specific Clauses Applicable to this Insurance Policy ........................................................................................................................................................... 20 2 of 22 Delta Property 10/20 R0324 © Delta Insurance New Zealand Ltd. All rights reserved. 1.0 Our promise to you In return for You agreeing to pay the required premium We will provide You with the cover set out in this Policy. 2.0 Important information 2.1 Reading This Policy This Policy is not a completed contract unless provided with a completed Schedule which together shall be read as one contract. Words and phrases appearing in capital letters have the meaning defined in the definitions section. In addition: a. The definitions apply to the plural and any derivatives of the words in capitals. b. The headings are for descriptive purposes only; c. “Person” includes individuals, partnerships, body corporates and associations; If any portion of the Policy is found to be invalid or unenforceable, the remainder shall remain in full force and effect. 2.2 About The Insurers – Several Liability This insurance is underwritten by Certain Underwriters at Lloyd’s. Delta Insurance New Zealand Limited is a Lloyd’s Coverholder. An insurer is liable only for the proportion of liability it has underwritten. An insurer is not jointly liable for the proportion of liability underwritten by any other insurer. Nor is an insurer otherwise responsible for any liability of any other insurer that may underwrite this Policy. The proportion of liability under this Policy underwritten by an insurer (or, in the case of a Lloyd’s syndicate, the total of the proportions underwritten by all members of the syndicate taken together) is shown in the Schedule. In the case of a Lloyd’s syndicate, each member of the syndicate (rather than the syndicate itself) is an insurer. Each member has underwritten a proportion of the total shown for the syndicate (that total itself being the total of the proportions underwritten by all the members of the syndicate taken together). The liability of each member of the syndicate is several and not joint with other members. A member is liable only for that member’s proportion. A member is not jointly liable for any other member’s proportion. Nor is any member otherwise responsible for any liability of any other insurer that may underwrite this contract. You can obtain further details of the syndicate numbers and the proportions of this insurance for which each of the Lloyd’s Underwriters is liable by requesting them from US. 2.3 The Fair Insurance Code Lloyd’s is a member of the Insurance Council of New Zealand, and is committed to comply with the Council’s Fair Insurance Code. For further information on the Code, please visit www.icnz.org.nz 2.4 Complaints And Dispute Resolution Process If you have any concerns or wish to make a complaint in relation to this policy, our services or your insurance claim, please let us know and we will attempt to resolve your concerns in accordance with our Internal Dispute Resolution procedure. Please contact Delta Insurance New Zealand Limited in the first instance: Complaints officer Delta Insurance New Zealand Limited complaints@deltainsurance.co.nz Auckland +64 9 300 3079 Level 22 48 Shortland Street Auckland Central Auckland 1010 PO Box 106 276 Auckland 1143 We will acknowledge receipt of your complaint within 5 business days and do our utmost to resolve the complaint to your satisfaction within 10 business days, unless we require further information in which case, we will agree an alternate time frame with you. If we cannot resolve your complaint to your satisfaction, you can escalate the matter to Lloyd’s General Representative in New Zealand: Lloyd’s General Representative in New Zealand Email: IDRNewZealand@lloyds.com Telephone: +64 4 472 7582 Post: PO Box 5639 Wellington New Zealand Following receipt of your complaint, you will be advised whether your dispute will be handled by the Complaints team at Lloyd’s Australia or the Lloyd’s Complaints team in the UK, or what other avenues are available to you. A final decision will be provided to you within two months of the date on which you first made the complaint unless certain exceptions apply. If your complaint is not resolved in a manner satisfactory to you or we do not resolve your complaint within two months of originally receiving it, you may refer the matter to the Insurance and Financial Services Ombudsman (IFSO Scheme). IFSO Scheme can be contacted as follows: 3 of 22 Delta Property 10/20 R0324 © Delta Insurance New Zealand Ltd. All rights reserved. Telephone: 0800 888 202 or +64 4 499 7612 Email: info@ifso.nz or via their website www.ifso.nz . Post: PO Box 10-845 Wellington New Zealand Your complaint must be referred to IFSO Scheme within 3 months of the final decision, unless IFSO Scheme considers special circumstances apply. If your complaint is not eligible for consideration by IFSO Scheme, you may be referred to the Financial Ombudsman Service (UK) or you can seek independent legal advice. You can also access any other external dispute resolution or other options that may be available to you. 2.5 Governing Law And Jurisdiction The Underwriters accepting this Insurance agree that: (i) if a dispute arises under this Insurance, this Insurance will be subject to New Zealand law and practice and the Underwriters will submit to the jurisdiction of any competent Court in New Zealand;. (ii) any summons notice or process to be served upon the Underwriters may be served upon: Lloyd’s General Representative in New Zealand Level 29 Plimmer Tower 2-6 Gilmer Terrace Wellington 6011 New Zealand who has authority to accept service on the Underwriters’ behalf; (iii) if a suit is instituted against any of the Underwriters, all Underwriters participating in this Insurance will abide by the final decision of such Court or any competent Appellate Court. 3.0 Your obligations under this policy 3.1 Duty Of Disclosure Before You take out insurance with Us, You have a duty to tell Us of everything that You know, or could reasonably be expected to know, that may affect Our decision to insure You and on what terms. If You are not sure whether something is relevant You should inform Us anyway. You have the same duty to inform Us of those matters before You renew, extend, vary, or reinstate Your Policy. The duty applies until the Policy is entered into, or where relevant, renewed, extended, varied or reinstated. If anything changes between when the answers are provided to Us or disclosures are made, You need to tell Us. However, You are not required to disclosure matters that: • reduce the risk; • are common knowledge; • We know or, in the ordinary course of Our business, ought to know; or • We have indicated We do not want to know. If You do not comply with Your duty of disclosure, We may: • Refuse to pay all or part of Your claim; • cancel the Policy; or • cancel Your insurance from the start date of the Policy. After the Policy is entered into, ongoing disclosure obligations can apply. These are set out in the Policy. 3.2 Alteration Of Risk You must notify Us as soon as possible if you become aware of any change in the nature of the occupation, use or otherwise of the Property. Unless such change is notified to Us prior to the happening of any circumstances giving rise to a claim, You may not be covered in relation to the Insured Property affected by the increased risk. However, no notification is required to: a. do such work and to make such changes in the use or occupancy of the Situation as is usual and/or incidental to the Business. b. Carry out any alterations and/or repairs to any Insured Property provided structural alterations and/or repairs are reported to US within a reasonable time and any reasonable additional premium for the increased risk is paid. c. Shut down or cease operations and for individual buildings to remain vacant or unoccupied for up to 90 days. 3.3 False Or Fraudulent Claim You must make sure that all statements are true (whether given by You or any other person) when You apply for this insurance, You notify Us regarding any change in circumstance and/or You make any claim under the Policy. If You make any statement to Us that is false in any way, We may: 4 of 22 Delta Property 10/20 R0324 © Delta Insurance New Zealand Ltd. All rights reserved. • Refuse to pay all or part of Your claim; • cancel the Policy; or • cancel Your insurance from the start date of the Policy. For the purposes of this condition, if the Insured comprises more than one person or corporation, each Insured will be treated as having been issued with a separate Policy. 3.4 Notification Of Claims If any Event is likely to give rise to a claim under the Policy You must: a. take prompt steps to avoid or minimise further Loss Or Damage or Business Interruption Loss; b. notify Us immediately by contacting Us by post, email or telephone as follows: Delta Insurance New Zealand Property Claims Level 22, 48 Shortland Street Auckland Central, Auckland 1010 P.O. Box 106 276 Auckland 1143 Tel 09 300 3079 Tel Claims - 0800 260 079 Claims email - propertyclaims@deltainsurance.co.nz c. Provide Us with all information as We reasonably require in connection with the claim; d. If a criminal act is suspected, notify the police. Section 1: Material Damage 4.0 Insuring clause – what you are covered for You are covered for Loss Or Damage to Insured Property during the Period Of Insurance due to an Event. The maximum amount payable by Us during the Period Of Insurance shall not exceed the Total Sum Insured stated in the Schedule. 5.0 Additional cover to Section 1 Where the Schedule contains a Sub-Limit in relation to any additional cover referred to below then Our liability shall not exceed that Sub- Limit in respect of the additional cover. 5.1 Acts Of Civil Authorities You are covered for all acts of destruction undertaken at the order of any lawfully constituted civil authority for the prevention or restriction of Loss Or Damage covered by this Policy. 5.2 Alternative Residential Accommodation Where any residential accommodation insured under this Policy is rendered uninhabitable as a result of Loss Or Damage covered by this Policy, You are covered for the reasonable costs and expenses of alternative accommodation necessarily incurred by You or the occupant (being Your employee only) provided that: a. The costs and expenses are not otherwise Insured; b. The period for which the costs and expenses are covered will be limited to the period reasonably required for reinstatement of the Insured Property; c. We may deduct a reasonable allowance for costs and expenses reduced or avoided as a result of the Insured Property being rendered uninhabitable; and d. Our liability for such costs and expenses is limited to $10,000 or an amount equal to 25% of the cost of reinstating any one dwelling or residential unit following Loss Or Damage, whichever is the lesser. e. Our liability for such costs and expenses arising out of one Event is included in the Sum Insured of the Insured Property that has been Loss Or Damage. 5.3 Capital Additions Cover You are covered for Loss Or Damage to: a. Alterations, additions (including additional buildings) and improvements to Insured Property; and b. Property acquired by You after the commencement of the Period Of Insurance up to the Sub-Limit stated in the Schedule. Provided that You advise Us of any such alterations, additions, improvements or acquisitions (other than Stock) and You pay any additional premium and associated additional statutory levies and taxes required by Us for this additional cover. You are not covered for any appreciation in value of the Insured Property which is not due to a physical alteration, addition or improvement. 5.4 Change In Temperature You are covered for Loss Or Damage resulting from a change in temperature in connection with Loss Or Damage to any Insured Property following an Event, or as a result of accidental or malicious disconnection of the power supply, up to the Sub-Limit shown in the Schedule. This includes any reasonable costs You incur in the removal and/or storage of such property at alternative premises. Material Damage Exclusion 7.10(d) does not apply to this additional cover. 5 of 22 Delta Property 10/20 R0324 © Delta Insurance New Zealand Ltd. All rights reserved. 5.5 Computer Breakdown You are covered for any breakdown of Your computer or electronic systems up to the Sub-Limit shown in the Schedule. Material Damage Exclusions 7.11 and 7.14 do not apply to this additional cover. 5.6 Cost Of Rewriting Records You are covered for all reasonable costs and expenses You incur up to the Sub-Limit stated in the Schedule replacing or restoring office and business records that have been Lost Or Damaged which shall include documents, specifications, plans, books of account, and Electronic Data. 5.7 Demolition And Other Costs You are covered for the reasonable costs necessarily incurred for the following purposes as a result of Loss Or Damage to Insured Property: a. demolishing, dismantling, shoring up or propping of Insured Property; b. the removal and disposal of debris and foreign matter (including the transport and storage costs of property whether damaged or undamaged); and c. temporary repairs to the Insured Property that has been Lost Or Damaged, including the erection and maintenance of street and/or pavement hoardings and/or scaffolding. Provided that Our total liability is not increased beyond the Sum Insured of the Insured Property that has been Lost Or Damaged. You are not covered for any sums that You become legally liable to pay by way of compensation or other damages consequent upon pollution or contamination of property. 5.8 Expediting Costs You are covered for the additional costs of express freight, air freight and overtime labour that You reasonably incur for the purpose of expediting the reinstatement of any Insured Property. Provided that Our total liability is not increased beyond the Sum Insured of the Insured Property that has been Lost Or Damage. 5.9 General Average Where Insured Property is Lost Or Damage in transit You are covered for any general average and salvage charges payable in accordance with any freight contract. 5.10 Gradual Damage You are covered for Loss Or Damage to Insured Property due to gradual damage, mildew, mould or rot caused by water which accidentally leaks, overflows, or is discharged from any piping or water system installed at the Situation up to the Sub-Limit shown in the Schedule. Provided that action is taken to minimise the Loss Or Damage and to prevent any further Loss Or Damage as soon as the Loss Or Damage is apparent. Material Damage Exclusion 7.10 (b) does not apply to this additional cover. 5.11 Hazardous Substance Emergency You are covered for any charge(s) which Fire and Emergency New Zealand is authorised to make against You in respect of any Hazardous Substance Emergency arising out of or in connection with any Insured Property, as a result of any Loss Or Damage or threat of Loss Or Damage to Insured Property. "Hazardous Substance Emergency" has the same meaning as defined in the Fire and Emergency New Zealand Act 2017 or any subsequent amending legislation. 5.12 Keys And Locks You are covered for the reasonable costs necessarily incurred in altering or replacing locks and keys (including electronic access devices) and combinations where keys and/ or combinations are stolen or lost, or if You have reasonable grounds to believe these may have been stolen or duplicated without proper authority, together with the cost of opening safes and strong-rooms as a result of loss of keys up to the Sub-Limit specified in the Schedule. 5.13 Landslip And Subsidence You are covered for Loss Or Damage to any Building shown in the Schedule caused by landslip or subsidence during the Period Of Insurance up to the Sub-Limit shown in the Schedule. Material Damage Exclusion 7.8 does not apply to this additional cover. 5.14 Mechanical Failure You are covered for Loss Or Damage to Insured Property due to mechanical or electrical breakdown, derangement or failure (motors not exceeding 5kw) up to the Sub-Limit shown in the Schedule. This Sub-Limit applies to the combined Material Damage and Business Interruption Loss. 5.15 Money You are covered for Loss Or Damage to Money up to the Sub-Limit shown in the Schedule. 5.16 Natural Disaster Damage Where any Insured Property detailed in the Schedule comprises residential buildings or personal property (both as defined in the Natural Hazards Insurance Act 2023), You are covered for Natural Disaster Damage, provided that: a. the Natural Hazards Commission (NHC) admits liability, either in full or in part, for such Natural Disaster Damage; and b. Our liability: i. shall not apply to the amount payable by NHC; and ii. shall not exceed the difference between the amount that the NHC pays or ought to pay, and the Sum Insured. 6 of 22 Delta Property 10/20 R0324 © Delta Insurance New Zealand Ltd. All rights reserved. 5.17 Professional Fees You are covered for professional fees reasonably incurred as a result of Loss Or Damage to Insured Property up to the SUB-LIMIT specified in the Schedule. Provided that Our total liability is not increased beyond the Sum Insured of the Insured Property that has been Lost Or Damage You are not covered for any costs associated with the preparation or proving of claims made under this section of the Policy. 5.18 Property In Course Of Construction You are covered for any property that You Own, will own, occupy or will occupy in the course of installation, construction, demolition, erection, or testing. The Sub-Limit shown in the Schedule includes allowances for: a. Professional Fees, b. Demolition Costs, c. Escalation in Cost during the building and rebuilding periods. The Insured Property under this clause will also be insured in transit and elsewhere in New Zealand. You shall declare to the Us the value of such works as soon as You become aware of the necessity to do so at which a time a suitable premium will be paid if required by Us. This clause provides cover for contracts where the completed value of the works does not exceed the Sub-Limit shown in the Schedule. The Sub-Limit stated is additional to the Sum Insured stated in the Schedule unless otherwise Specified. 5.19 Protection Costs You are covered for any costs reasonably incurred as a direct result from fighting or controlling any Event that involves or threatens to involve Insured Property. Provided that Our total liability is not increased beyond the Sum Insured of the Insured Property that has been Lost Or Damage. 5.20 Redundant Plant You are covered for any undamaged or salvaged plant as if such plant had suffered Loss Or Damage where: a. The plant forms part of the same interdependent system or line, or b. Spare parts held exclusively for the Lost Or Damaged plant, or other plant in that system or line, are rendered redundant due to Loss Or Damage to other Insured Property. The redundant plant and parts shall be treated as if the Loss Or Damage had occurred from the same Event that caused the Loss Or Damage covered by this Policy. Any claim for redundant plant shall be net of any salvage value from the redundant plant or parts. This additional cover does not apply where You have elected to carry out replacement by changing the nature or use of the Insured Property. 5.21 Release Of Liability Where You are required by legislation or by contractual agreement to release from liability: a. the Crown; b. any Government corporation; c. any municipal or Local Authority d. Fire and Emergency New Zealand e. any fire protection equipment supplier approved by the Insurance Council of New Zealand Inc; f. any lift maintenance engineers; g. any oil company; h. any party storing goods for, or leasing property to, You; or i. any other party to an agreement which has been declared to and accepted by Us in relation to Loss Or Damage covered by this Policy, the release is allowed without prejudice to this Policy and notwithstanding the subrogation condition of this Policy. Provided that the waiver was made in writing before the Loss Or Damage occurred. 5.22 Rewards You are covered for any payment You make by way of a reward, provided that the payment contributed towards the protection and/or recovery of all or part of the Insured Property Lost Or Damage and that We agreed to the terms of the reward prior to it being offered. 5.23 Sale Of Buildings You are covered for Loss Or Damage to any Building included in the Schedule which is for sale, and where an agreement to sell the interest in the Building has not been fully completed and is not otherwise insured by or on behalf of the purchaser against such Loss Or Damage. 5.24 Sustainable Rebuilding Costs You are covered for additional costs You reasonably incur to upgrade Building(S) with sustainable products up to 10% of the Buildings Sum Insured or $100,000, whichever is greater, provided that: a. the Building(S) has been Destroyed; 7 of 22 Delta Property 10/20 R0324 © Delta Insurance New Zealand Ltd. All rights reserved. b. the Building(S) is insured for Replacement Value as shown on the Schedule; c. the Building(S) is reinstated; and d. We approve the sustainable products (approval will not be unreasonably withheld). “Sustainable Products” means products that increase the efficiency of the Building relating to the use of energy and/or water and rebuilding materials that reduce environmental impacts including (but not limited to) double glazing, solar water heating systems, environmentally friendly timber, rainwater collection tanks and water efficient interior plumbing. It does not include fire protection devices or systems, security devices or systems or natural hazard protection. 5.25 Temporary Removal (Excluding Stock) You are covered for all Insured Property excluding Stock whilst temporarily removed to any other premises in New Zealand (but excluding whilst in transit to and from the Situation). The amount payable shall not exceed the amount which would have been payable had the Loss Or Damage occurred at the Situation. 5.26 Transit Of Property You are covered for Loss Or Damage to Insured Property (including Stock) that is in transit up to the Sub-Limit shown in the Schedule. Where goods are destined for transit beyond New Zealand, cover under this Policy ceases at the time goods pass over the ships rail or through air transport loading doors for overseas transit from any New Zealand port or airport, or at the time Your interests in the goods has ceased at a point of sale, whichever is the earlier. 5.27 Unlawful Substances You are covered for Loss Or Damage to an insured Building or Insured Property within a Building as shown on the Schedule, due to the manufacture, storage or distribution of any controlled drug as defined in the Misuse of Drugs Act 1975, if: a. the Building is tenanted; and b. We or the person who manages the tenancy on Your behalf has met the Landlord Obligations. Provided that the most We will pay is $25,000 for any one Event, up to a maximum of $100,000 in the Period Of Insurance. “Landlords Obligations” means You or the person who manages the Insured Property on Your behalf must: a. Exercise reasonable care in the selection of tenant(s) 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(s), and c. Keep a written record of the outcome of each inspection, and provide a copy to Us if a copy is requested. 5.28 Utilities You are covered for Loss Or Damage due to contamination or interruption of the supply of utilities such as telecommunications, water, gas, electricity where the Event causes Loss Or Damage to any Insured Property. 6.0 Basis of settlement – how we will pay you The basis upon which We will pay You for Loss Or Damage to Insured Property is as stated below. For the purpose of determining the heading under which property is insured, We agree to accept the designation under which such property has been entered into Your books of account. 6.1 Buildings, Contents And Other Property Unless an alternative basis of settlement is shown in the Schedule, We will pay You the Indemnity Value for any Insured Property not more particularly set out below, that is Lost Or Damaged during the Period Of Insurance. 6.2 Stock We will pay You the replacement value of raw materials and finished goods plus any work in progress, labour or overhead charges that cannot be recovered due to the Loss Or Damage to Stock. In the event of a claim for Loss Or Damage to branded Stock, such Stock will only be sold with Your consent. Where You do not consent to the sale of branded Stock, the salvage value shall be taken into account in the settlement of the claim. 6.3 Cost Of Rewriting Of Records We will pay You the reasonable costs and expenses You incur for the replacement or restoration of office and business records which shall also include documents, specifications, plans, books of account, and Electronic Data together with the costs of reproduction. You are not covered for the value of the information contained in the records. 6.4 Electronic Items We will pay You the replacement value of the following Insured Property where items are no more than 3 years old: a. Cell phones, video data projectors, digital cameras; b. Other audio visual equipment; c. Portable computing devices and portable data storage devices. 6.5 Media And Electronic Data We will pay You the replacement cost of blank media (including the cost of any proprietary software and licensed software fees), plus the reasonable cost of transferring the Electronic Data from back-up or from originals of a previous generation. These costs will not include research and engineering nor any costs associated with recreating, gathering or assembling such Electronic Data. 8 of 22 Delta Property 10/20 R0324 © Delta Insurance New Zealand Ltd. All rights reserved. If the media is not repaired, replaced or restored, We will pay You the replacement cost of blank media. We will not pay any costs in relation to the value of the Electronic Data to You or any other party, even if the Electronic Data cannot be recreated, gathered or assembled. 6.6 Works Of Art Where there is Loss Or Damage to Insured Property comprising a Work Of Art or Artefact, We may appoint an independent and suitably qualified valuer or restorer to determine whether the Work Of Art or Artefact can be restored to its pre-damage condition. If the valuer or restorer determines that the Work Of Art or Artefact cannot be economically restored to its pre-damage condition, the Work Of Art or Artefact will be deemed Destroyed. Its pre-damage value will be determined by the valuer, or providing the restorer is suitably qualified, by the restorer. We will pay the pre-damage value less any salvage value of the damaged Work Of Art or Artefact. If the valuer or restorer determines that the Work Of Art or Artefact can be economically restored to its pre-damage condition, We will pay the cost of restoration, or if the restoration is not carried out, the restorer’s reasonable estimate of the cost of restoration, In the event of the total loss of any Work Of Art(s) or Artefact(s), that forms part of a set, We will pay the cost of the complete set and You must give Us the remainder of the set. We will not pay for any reduction in value due to a Work Of Art or Artefact having been damaged and restored. The most We will pay for a Work Of Art or Artefact is $10,000 any one item or $50,000 in total, unless a higher amount is shown in the Schedule. 6.7 Restoration And Reproduction Costs We will pay You all costs and expenses You reasonably and necessarily incur replacing, reinstating, repairing, restoring and/or reproducing proof materials which shall include but not be limited to print blocks, plates-lettering, films (positive or negative), artwork, typeset and/or paste-up. The replacement, reinstatement, repair, restoration and/or reproduction shall be deemed to mean the restoration of the damaged property to a condition substantially the same as but not better or more extensive than its condition when new, or if destroyed its replacement by similar property in a condition substantially the same as but not better than the condition of the Insured Property when new. 6.8 Reinstatement Where any item(s) of Insured Property is insured for reinstatement it will be shown in the Schedule. Whenever reinstatement cover applies, We will indemnify You by reinstating the Insured Property in accordance with the following the following definitions and Special Provisions. Definitions 1. "reinstatement" means: a. where Insured 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 modern equivalent materials, skills and techniques that are readily available and including all costs incurred to comply with any Act of Parliament or Regulation. b. where Insured Property is lost or Destroyed, replacement by an equivalent building or by equivalent property as the case may require. 2. "equivalent building" means a Building which is as nearly as practicable the same as the Building lost or Destroyed, using modern equivalent materials, skills and techniques that are readily available and incorporating such alterations as are necessary to comply with any regulations that are in force when the Loss Or Damage occurs, but excluding all costs and expenses of whatsoever nature in connection with seismically strengthening Insured Property to a level greater than its level before the Loss Or Damage. Where an equivalent building: a. cannot be constructed, or b. is not suitable to Your reasonable requirements, then with Our consent (which will not be unreasonably withheld) We will pay for another similar Building provided that it is not more extensive than the Building that has been lost or Destroyed. 3. "equivalent property" means any other property as nearly as practicable the same as or equivalent to the property Destroyed, having regard to the current state of technology, and having an equivalent capacity to that of the Destroyed property, but not greater capacity unless property with an equivalent capacity is not available and the replacement property has the nearest to an equivalent capacity. Special Provisions 1. If We request it, You must provide Us with a written valuation which includes an estimate of the cost of reinstatement of the Insured Property prepared and certified by a valuer acceptable to Us. 2. The Sum Insured under the Policy in respect of each item will not be less than the amount of such estimate, and may be adjusted for renewal provided this is done within a two month period of the renewal date. 3. When Insured Property is damaged but not Destroyed, Our liability shall not exceed the amount We would have been called upon to pay for reinstatement if such property had been Destroyed. 4. Where a Building is Destroyed, You may carry out the replacement by an equivalent building upon another site and in any manner suitable to Your requirements including a change in the nature and use of the building, provided that Our liability does not exceed the cost which would have been incurred had reinstatement been carried out on the original site. 5. No payment will be made beyond the Indemnity Value: a. If You elect not to reinstate the property; b. If reinstatement is not commenced and carried out promptly; 9 of 22 Delta Property 10/20 R0324 © Delta Insurance New Zealand Ltd. All rights reserved. c. Until the cost of reinstatement has been actually incurred. 6. All reasonable costs and expenses incurred in complying with Regulations that are in force on the date that the Loss Or Damage occurs are included in the amount payable for reinstatement except for the following: a. costs and expenses for any work which You had already been required to carry out by notice served prior to the happening of the Loss Or Damage; or b. costs and expenses incurred in respect of undamaged property or undamaged portions of property other than foundations; or c. costs and expenses of whatsoever nature in connection with seismically strengthening Insured Property to a level greater than its level before the Loss Or Damage. 7. Our liability in respect of any item of Insured Property will not exceed the Sum Insured for that item. 8. Foundations, Buildings and/or major plant items which prove to be unsuitable for further use following Loss Or Damage and/or due to the action or regulations of any Municipal or Government or Local Authority or similar Body or due to the operation of any health or similar Regulation shall be considered part of the Lost Or Damaged Insured Property. 6.9 Destruction Of Undamaged Property Where Insured Property is insured for reinstatement You are covered for the cost of partial or total demolition and subsequent replacement of undamaged property or undamaged portions of property (whether or not the undamaged property or portions of property comprises a separate Building or item of plant) where such partial or total demolition and subsequent replacement is solely necessary in order to carry out repairs or reinstatement of Insured Property following Loss Or Damage by an Event. Our total liability shall not increase beyond the Sum Insured of the Insured Property that has been Lost Or Damaged. You are not covered under this Policy for any work required to undamaged property solely to comply with any Act, By-Law or requirement of any Local or Public Authority. 6.10 Floor Space Ratio Where Insured Property is insured for reinstatement and is subject to payment of any fee, tax, or other cost then We will pay the following: a. The difference between: i. the cost of reinstatement actually incurred in accordance with the reduced floor space requirement, and; ii. the cost that would have been incurred had reinstatement with the original floor area been permitted. b. Any additional demolition, dismantling and debris removal costs necessarily incurred to comply with Regulation. c. The cost of any fee, tax, or other cost to which the permission to reinstate is subject. The amount payable under a) above is to be ascertained and certified by an Architect or other suitably qualified person acting on Your behalf in connection with the reinstatement. 6.11 Contractual Value Where Insured Property is the subject of a lease, rental, hire or similar agreement which requires You to insure and/or be responsible for the property at an agreed value then We will pay You in accordance with the agreed value as stipulated in the lease, rental or hire agreement up to a Sub-Limit of $100,000. Provided that Our total liability is not increased beyond the Sum Insured of the Insured Property that has been Lost Or Damaged. 6.12 Progress Payments Following Our acceptance of a claim under this Policy, We will provide You with progress payments. Where the Insured Property is insured for reinstatement and You elect to replace, then You shall be entitled to receive the Indemnity Value as soon as such sum has been established. If the cost of reinstatement exceeds the Indemnity Value, then You shall be entitled to reimbursement of the additional costs of reinstatement as they are incurred, up to the Sum Insured. 6.13 Repair Or Reinstatement By Insured You are covered for the reasonable cost of any reasonable repair or reinstatement work in relation to Loss Or Damage under this section of the Policy undertaken by You. Due allowances shall be made for a reasonable margin of profit in respect of such work, provided these costs are reasonable and competitive. You must obtain Our permission prior to undertaking such work unless the work is urgent and necessary to prevent further Loss Or Damage . 6.14 Reinstatement Of Amount Of Insurance In the event of Loss Or Damage under this Policy the Sum Insured shall automatically and immediately reduce by the amount We have to pay for the Loss Or Damage . The reduced Sum Insured as a result of the Loss Or Damage will be automatically reinstated from the date the Insured Property has been fully repaired, replaced or reinstated. You must pay Us any further premium required by Us for the reinstated cover. However, if the Loss Or Damage is as a result of Natural Disaster Damage there will be no automatic reinstatement of the Sum Insured unless specifically agreed in writing by Us. 7.0 Policy exclusions applying to Material Damage Section In addition, to the General Policy Exclusions (Section 13) You are not covered for the following: 7.1 the applicable Excess stated in the Schedule which shall be deducted from any payment made under the Policy in respect of each claim or series of claims arising from any one Event. 7.2 fraudulent misappropriation of Insured Property committed by any employee, partner or director of the Insured. 7.3 You voluntarily parting with title or possession of any Insured Property if induced to do so by any fraudulent scheme, trick or false pretence. 10 of 22 Delta Property 10/20 R0324 © Delta Insurance New Zealand Ltd. All rights reserved. 7.4 any consequential economic loss including penalties, loss of use of any property, delays or loss of market. 7.5 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 to protect the Insured Property from those conditions. 7.6 unexplained loss or inventory shortages revealed only at stocktaking or shortages due to accounting or clerical errors other than that covered by the additional cover for Money (Clause 5.15). 7.7 Loss Or Damage caused by or resulting from normal settling, shrinkage or expansion of Building or foundations, but You are covered for resulting Loss Or Damage this causes to other Insured Property. 7.8 Loss Or Damage caused by landslip, subsidence, erosion or expansion of the ground. 7.9 Loss Or Damage to Insured Property deliberately caused by You. 7.10 Loss Or Damage indirectly or directly caused by: a. Design fault, error or omission in design, plan or specification; b. Wear and tear, gradual deterioration, corrosion; c. Vermin or insects; d. Change in artificially controlled temperature or atmosphere; e. 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. 7.10 Loss Or Damage to any plant or equipment directly caused by its own electrical malfunction. 7.11 Loss Or Damage to Stock undergoing any production process where the Loss Or Damage is directly caused by the normal operation of that process. 7.12 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). 7.13 Loss Or Damage directly caused by mechanical or electronic breakdown of machinery or electrical equipment ("breakdown" means a failure due solely to internal stress or fault, the failure not being caused by an Event external to the effected machine or equipment). 7.14 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. 7.15 Loss of Money due to: a. Shortages caused by errors in receiving or paying out; b. Fraud or dishonesty of any employee of the Insured unless such loss is discovered within 72 hours (excluding Saturday, Sunday and/or Public Holiday) of its occurrence; c. Payment of Money for or in consideration of a cheque which is subsequently dishonoured; d. Money being entrusted to any person other than You, Your employees, Your authorised agents, or a professional Money carrier. Exclusions 7.10 to 7.15 (inclusive) do not apply where the Loss Or Damage is caused by or arises out of or in connection with an Event not otherwise excluded. Exclusions 7.10 to 7.15 (inclusive) shall be limited to the item immediately affected and shall not extend to subsequent Loss Or Damage to other Insured Property. Section 2: Business Interruption 8.0 Insuring clause – what you are covered for You are covered for Business Interruption Loss that occurs during the Period Of Insurance as a result of Loss Or Damage up to the Sum Insured specified in the Schedule for each item insured below. 8.1 Gross Profit 1. You are insured for loss of Gross Profit due to: Reduction In Turnover. The amount payable shall be the rate of Gross Profit multiplied by the Reduction In Turnover. 2. Increase in cost of working The amount payable shall be the additional expenditure necessarily and reasonably incurred solely to avoid or diminish a Reduction In Turnover during the Indemnity Period, provided that this additional expenditure does not exceed the sum produced by applying the rate of Gross Profit to the amount of the reduction thereby avoided. We will deduct from Your claim for loss of Gross Profit any sum saved during the Indemnity Period for costs and expenses of the Business payable out of Gross Profit which cease or reduce because of the Loss Or Damage 11 of 22 Delta Property 10/20 R0324 © Delta Insurance New Zealand Ltd. All rights reserved. 8.2 Gross Revenue You are covered for loss of Gross Revenue due to: 1. Loss of Revenue The amount payable shall be the amount by which the Gross Revenue during the Indemnity Period falls short of the Standard Revenue as a result of the Loss Or Damage. 2. Increase in cost of working The amount payable shall be the additional expenditure necessarily and reasonably incurred solely to avoid or diminish a reduction in Gross Revenue during the Indemnity Period, provided that this additional expenditure does not exceed the amount of the reduction in Gross Revenue thereby avoided. We will deduct from Your claim for loss of Gross Revenue any sum saved during the Indemnity Period for costs and expenses of the Business payable out of Gross Revenue which cease or reduce because of the Loss Or Damage. 8.3 Gross Rentals You are covered for loss of Gross Rentals due to: 1. Loss of Gross Rentals The amount payable shall be the amount by which the Gross Rentals during the Indemnity Period falls short of the Standard Gross Rentals as a result of the Loss Or Damage. 2. Increase in cost of working; The amount payable shall be the additional expenditure necessarily and reasonably incurred solely to avoid or diminish a reduction in Gross Rentals during the Indemnity Period, provided that this additional expenditure does not exceed the amount of the reduction in Gross Rentals thereby avoided. We will deduct from Your claim for Loss of Gross Rentals any sum saved during the Indemnity Period for costs and expenses of the Business payable out of Gross Rentals which cease or reduce because of the Loss Or Damage. 8.4 Redundancy Payments You are covered for all payments which You make to employees in accordance with their employment contracts whose services are terminated as a result of the Loss Or Damage. 8.5 Payroll/Wages - Dual Basis You are covered for loss in respect of Payroll/Wages due to: 1. Reduction In Turnover: a. The amount payable during the Initial Period shall be the sum produced by applying the Rate Of Payroll/Wages to the Reduction In Turnover, less any savings in Payroll/Wages; b. The amount payable during the remaining portion of the Indemnity Period, shall be the sum produced by applying the Rate Of Payroll/Wages to the Reduction In Turnover, less any savings in Payroll/Wages, but not exceeding the sum produced by applying the remainder percentage of the Rate Of Payroll/Wages to the Reduction In Turnover, plus savings in Payroll/Wages deducted under clause 1 (a); Note: If an “Alternative Period” is shown in the Schedule, this may be substituted for the Initial Period at Your option, provided that the claim under clause 1 (b) shall not exceed savings in Payroll/Wages deducted under clause 1 (a). 2. Increase in cost of working: The amount payable shall be the additional expenditure necessarily and reasonably incurred solely to avoid or diminish a Reduction In Turnover provided that this additional expenditure does not exceed the amount that would have been payable under the provisions of clause 1 (a) and 1 (b) of this Item had such expenditure not been incurred. 8.6 Payroll/Wages In Lieu Of Notice You are covered for Financial Loss You incur for the payment of Payroll/Wages in lieu of notice for a period beginning with the commencement of the Indemnity Period and ending not later than the number of weeks stated in the Schedule. 8.7 Additional Cost Of Working You are covered for the additional expenditure You necessarily and reasonably incur during the Indemnity Period as a result of Loss Or Damage in order to: 1. minimise any Business Interruption Loss; 2. resume or maintain any normal operation or service of the Business. No cover is provided for expenditure which is: a. covered under another insured item’s “increase in cost of working”, until the amount of cover under that insured item for those expenses is exhausted; or b. incurred for reinstating Insured Property. 8.8 Redeployment Expenses You are covered for expenditure You reasonably incur in the necessary relocation of employees where as a result of the Loss Or Damage, You elect to permanently redeploy employees at any alternative sites. Your expenses will include all such expenses as You would normally incur or reimburse to employees when transferring employees and their families to different places of permanent residence for the purpose of the Business. 12 of 22 Delta Property 10/20 R0324 © Delta Insurance New Zealand Ltd. All rights reserved. 8.9 Debtors Balances You are covered for Financial Loss You sustain in respect of outstanding debtors balances directly due to the Loss Or Damage. The amount payable in respect of the Financial Loss after due allowance for bad debts shall not exceed: 1. the difference between: a. the outstanding debit balances; and b. the total of the amount received or traced in respect of the outstanding debit balances with due allowance made for bad debts; plus 2. the additional expenditure incurred in tracing and establishing customers debit balances after the Loss Or Damage. 8.10 Preparation Of Claim Costs You are covered for the additional expenditure You reasonably incur in preparing and presenting, any claim accepted as a result of Loss Or Damage under either this section of the Policy, the Material Damage section of the Policy or both. Salaries, wages, overheads and other expenses relating to Your employees incurred in the preparation of claims shall be deemed to be part of these costs and expenses. 9.0 Additional cover to Section 2 Where the Schedule contains a Sub-Limit in relation to any additional cover referred to below then Our liability shall not exceed that Sub- Limit in respect of the additional cover. Where the Schedule shows a deferment period, this period will be the applicable Excess for the Additional Cover. 9.1 Acts Of Civil Authorities You are covered for Financial Loss resulting from any action of a lawfully constituted civil authority consequent upon: a. Loss Or Damage to any property; b. bodily injury to any person on or within 10 Kilometres of the Situation; c. fumes, escape of any hazardous material, defective sanitation or effluent system; or any threat or fear of any of them. Our liability is subject to a time excess of twenty four (24) hours from the beginning of the Event that caused the Financial Loss. 9.2 Contractual Commitments You are covered in respect of contractual commitments as a result of the Loss Or Damage. The amount payable shall be the amount You are legally liable to pay under contracts for purchases not used during the Indemnity Period. Any sums You receive or are receivable in respect of such purchases through any salvage handling operations or resale shall be deducted from the amount payable. Provided payment under this extension is not as a result of You electing to carry out replacement by changing the nature or use of the Insured Property. 9.3 Deterioration Of Undamaged Property You are covered for Financial Loss resulting from deterioration or loss of value of any raw material or partially processed product or commodity due to Your inability to process it in the normal way following Loss Or Damage to Insured Property. Provided payment under this extension is not as a result of You electing to carry out replacement by changing the nature or use of the Insured Property. 9.4 Penalty Payments You are covered for any penalties, fines, damages or other amounts which You are legally liable to pay in accordance with the terms and conditions of any contract, due to any unavoidable breach of contract by You during the Indemnity Period resulting from any interruption to or interference with Your Business solely as a result of Loss Or Damage. Provided payment under this extension is not as a result of You electing to carry out replacement by changing the nature or use of the Insured Property. 9.5 Fumes Gases And Toxic Chemicals You are covered for Business Interruption Loss as a result of: a. fumes or gases; b. toxic chemicals or hazardous substances; Our liability is subject to a time excess of twenty four (24) hours from the beginning of the Event that caused the Loss Or Damage . 9.6 Prevention Of Access You are covered for Business Interruption Loss as the result of Loss Or Damage, or threat to property or persons within a 10 Kilometre radius of the Situation that prevents or hinders the use of such premises or its access or egress irrespective of whether Your premises or property is damaged, up to the Sub-Limit shown in the Schedule. Our liability is subject to a time excess of twenty four (24) hours from the beginning of the Event caused by the Loss Or Damage. 9.7 Suppliers And Customers You are covered for Business Interruption Loss, in consequence of Loss Or Damage to: a. property and/or premises in New Zealand of suppliers of goods and services to You; b. property and/or premises in New Zealand of Your customers; 13 of 22 Delta Property 10/20 R0324 © Delta Insurance New Zealand Ltd. All rights reserved. c. premises in New Zealand where You have property stored, processed, repaired or for outwork; d. transport routes, port or airport installations anywhere in New Zealand which shall have an effect upon Your Business including not only closure due to an Event, but also closure by order of any authority or other body as a result of or fear of any Event, subject to a time excess of seven (7) days from the happening of the Event giving rise to such closure or disruption; e. Property Insured in transit within New Zealand or whilst temporarily housed in the course of transit. Our liability shall not exceed the Sub-Limit stated in the Schedule or agreed for a named customer or supplier as stated in the Schedule for a specified percentage. 9.8 Supply Of Basic Services You are covered for Business Interruption Loss following Loss Or Damage to anything that affects the supply of electricity, tele- communications, gas or water to Your Business, or the disposal of waste by Your Business. This section excludes off-shore gas facilities and pipelines including pipelines to shore. Our liability is subject to a time excess of twenty four (24) hours from the beginning of the Event which caused the Loss Or Damage. 9.9 Keymoney Or Goodwill You are covered for the additional expenditure You reasonably and necessarily incur during the Indemnity Period for the purpose of purchasing, leasing premises or business goodwill and/or key monies in order to establish the Business at alternative premises as a result of Loss Or Damage. If the goodwill and/or key monies of the new premises exceeds the amount that applied to the Situation, then the difference is to be borne by You. 9.10 Closure Due To Injury If there is, within a 10 Kilometre radius of the Situation, during the Period Of Insurance: a. danger to human life; or b. injury to, murder or suicide of, any person; or c. the Situation or part thereof are closed by any authority due to defects in the drains and other sanitary arrangements or the escape of fumes or any hazardous material; or d. the threat or fear of any of them, and this prevents or hinders access or egress or the use of the Situation there is deemed to be Loss Or Damage. If this Loss Or Damage results in Business Interruption Loss, You are covered as set out in each item stated in the Schedule. 9.11 Raw Materials Contingency We will reimburse You for the value of Your Stocks of raw materials which, in the event of Business Interruption Loss due to Loss Or Damage, You are unable to utilise in the production and/or manufacture of finished products. Provided that We have accepted a claim by You under this Policy and the loss is not as a result of You electing replacement. In the event of a claim under this item, the Stocks of raw materials not utilised or intended to be utilised by You shall be Our property to sell or dispose of as We see fit. The value of Stocks of raw materials shall be the landed cost of goods. The cover provided shall only apply to Stock which at the time of the interruption of the Business, shall have been owned by You for not longer than twelve (12) months. 10.0 Basis of settlement – how we will pay you 10.1 Accumulated Stocks In adjusting any claim under this section of the Policy, We shall take account of and an equitable allowance shall be made if during the Indemnity Period Turnover is temporarily maintained from accumulated stocks of finished goods held by You, thus causing a shortage of finished goods and/or reduced Turnover after the Indemnity Period has expired. 10.2 Departments If the Business is conducted in branches, departments, subsidiaries or other units and the independent trading results are ascertainable, this Policy shall apply separately to each branch, department, subsidiary or other unit affected by the Loss Or Damage. However Our total liability remains unchanged. 10.3 New Business For the purpose of any claim arising from Loss Or Damage occurring before the completion of the first year's trading of the Business at the Situation the terms Rate Of Gross Profit, Annual Turnover, Standard Turnover and Standard Gross Rentals shall bear the meanings as defined in the "Definitions to be Adjusted". 10.4 Output Turnover Option At Your option, the term output may be substituted for the term Turnover or other index of business activity and for the purpose of this section of the Policy “output” shall mean sale value of goods manufactured by You or such other definition of index normal to that business activity in the course of such business. 10.5 Progress Payments In the event of a valid claim under this Policy, We will provide You with progress payments. 14 of 22 Delta Property 10/20 R0324 © Delta Insurance New Zealand Ltd. All rights reserved. 10.6 Premium Adjustment The premium charged under this section of the Policy for any Gross Profit or Wages item is provisional only. The premium is adjustable at the end of the current Period Of Insurance in accordance with the following conditions: a. You shall furnish a return of the annual Gross Profit earned in the financial year most nearly concurrent with the Period Of Insurance on which the premium shall be adjusted. b. We will refund You the amount by which the provisional premium paid shall exceed the actual premium payable or alternatively, You shall pay Us the amount by which the provisional premium paid shall fall short of the actual premium due to Us. c. The minimum premium for any one annual Period Of Insurance shall not be less than 50% of the deposit premium charged. d. Where the Indemnity Period is in excess of twelve (12) months the adjustment shall be calculated on a proportionate increase on Gross Profit and/or Wages earned in direct proportion to which the Indemnity Period bears to the annual figures stated under a) above. 10.7 Reinstatement Of Amount Of Insurance In the event of Loss Or Damage for which a claim for Business Interruption Loss is payable under this Policy, and in the absence of written notice by Us to the contrary, the amount payable under the Policy for that Business Interruption Loss will be automatically reinstated from the date the Insured Property which was Lost Or Damaged was repaired or replaced. You undertake to pay such pro-rata premium as may be required for the reinstatement. However, if the Loss Or Damage is as a result of Natural Disaster Damage, the amount payable will not be reinstated unless We agree to this. 11.0 General definitions The Following Definitions Apply To All Sections Of This Policy ARTEFACT means an object of cultural or historical interest and includes sporting memorabilia. ASSESSOR means a loss adjuster or assessor appointed by Us and that is acceptable to You. BURGLARY means Loss Or Damage resulting from Theft or any attempt at Theft accompanied by: a. violent and forcible entry to or exit from any enclosed Building; or b. violence or threat of violence to a person. BUSINESS means Your business as specified in the Schedule. BUILDING means any Building or structure together with underground and above ground services directly associated with the Building, permanently attached fixtures and fittings, including but not limited to signs, fire protection systems, wired security systems, site improvements and landscaping. DESTROYED means so damaged by an Event that the Insured Property, by reason only of that damage, cannot be economically repaired. A Building shall be deemed uneconomic to repair where the estimated costs of reinstatement exceed 85% of that Building’s Sum Insured. However the cost of seismically strengthening Insured Property to a level greater than its level before the Loss Or Damage will not be taken into account in determining whether any Insured Property is Destroyed a can be economically repaired. EVENT means any happening or series of happenings arising from one source or original cause. ELECTRONIC DATA means facts, concepts and information converted to a form useable for communications, display, distribution, interpretation or proceeding by electronic and electromechanical data proceeding or electronically controlled equipment and includes programmes, software and other coded instructions for such equipment. EXCESS means the applicable excess shown in the Schedule that will be deducted from the amount payable in respect of Loss Or Damage to Insured Property caused by an Event. Where an Event occurs over a period of more than 72 consecutive hours, one excess will be deducted for every 72 consecutive hour period. INSURED means the person(s) or entity/entities named in the Schedule and any subsidiary company (of which more than half the nominal value of whose equity share capital is owned by the named Insured either directly or through other subsidiaries) and any entity over which an Insured exercises management control. INSURED PROPERTY means all real and personal property of every kind at the Situation including: a. Property which You own or which is in Your care, custody and control; and b. The personal effects and tools of Your employees, directors, consultants and visitors which are in Your care, custody or control or for which You are responsible; But excluding the following property (unless stated in the Schedule). a. Waterborne craft or vessels, aircraft, railway locomotives and railway rolling stock including their accessories unless held as Stock for the Business or auction; b. Livestock, animals, standing timber and growing crops; c. Bullion, precious stones, jewellery, furs and precious metals unless held as Stock or forming part of plant and tools of the Business; d. Motor vehicles and other mechanically or electrically propelled vehicles including their accessories, unless held as Stock for the Business or as stated in the Schedule; (but this exclusion does not apply to mobile plant used in or around the Situation); e. Dams, canals, reservoirs and rail or road bridges, road or rail tunnels, docks, piers, wharves, mining property located beneath the surface of the ground and land (other than landscaping and planting costs). This shall not apply to any reservoirs, tunnels and bridges located at any Situation owned or occupied by You which do not individually exceed $100,000 in value; or f. Property in the course of construction and/ or building alterations and/or installation of additional machinery/plant where the total value of the contract work exceeds $100,000 or a higher amount as may be stated in the Schedule. 15 of 22 Delta Property 10/20 R0324 © Delta Insurance New Zealand Ltd. All rights reserved. INDEMNITY VALUE means whichever of the following options We choose: a. the cost of repairs to restore the Insured Property to a condition that is as near as possible to its condition immediately prior to the Loss Or Damage, or b. the replacement of the Insured Property with property of a similar condition, age and specification, as it was in, immediately prior to the Loss Or Damage, or c. the payment of an amount equal to either (a) or (b) above based on a market value of the Insured Property immediately prior to the Loss Or Damage. LOSS OR DAMAGE means sudden physical loss of or physical damage to Insured Property that was unintended or unforeseen by You. MONEY means current coin, bank notes, currency notes, cheques including non-negotiable cheques, postal orders, travellers cheques, Money orders, credit card vouchers, petrol vouchers, tickets, other negotiable instruments, unused postage, unused franking machine credits and revenue stamps belonging to the Insured or for which the Insured is responsible. NATURAL DISASTER DAMAGE means any of the following: earthquake, subterranean fire, volcanic eruption, tsunami, geothermal activity, hydrothermal activity or fire occasioned by or through or in consequence of any of these. PERIOD OF INSURANCE means the period that commences and ends at the times and dates as stated in the Schedule and including any extension of this period as agreed to in writing by Us. POLICY means this policy wording, the Schedule, and any endorsement attaching to and forming part of the Policy either at commencement or during the Period Of Insurance. REGULATION means regulation made under or framed in pursuance of any Act of Parliament or regulation or by-law of any Local Authority. SITUATION means the situation stated in the Schedule. SCHEDULE means the most recent version of the Schedule issued for the relevant section of the Policy (namely the Material Damage Schedule and the Business Interruption Schedule). STOCK means stock and materials in trade owned by You. SUB-LIMIT means the Sum Insured relating to specified additional cover as shown in the Schedule. Any Sub-Limit indicated on the Schedule is included within, and not in addition to, the Sum Insured for that item of Insured Property shown on the Schedule. SUM INSURED means the limit of Our liability in relation to specified items of Insured Property as stated in the Schedule. THEFT means the taking of any property with the intent to permanently deprive the owner of that property. TOTAL SUM INSURED means the maximum amount payable by Us under this Policy. WE/US/OUR means Delta Insurance New Zealand Limited for and on behalf of Certain Underwriters at Lloyd’s as noted in the Schedule. WORK OF ART means an object of artistic or cultural value including but not limited to pictures, paintings, prints, sculptures or ornaments, hand woven carpets, rugs or mats. YOU/YOUR means the Insured. 12.0 Definitions applying only to Business Interruption Section BUSINESS INTERRUPTION LOSS means Financial Loss caused by interruption to or interference with Your Business operations. FINANCIAL LOSS means the reduction in the financial value of Your Business in respect of those items shown in the Schedule but excluding consequential financial losses such as losses arising out of the following: a. delays b. loss of market; c. penalties; d. rate, taxes, duties, development charges; e. other charges or assessments arising out of capital appreciation, that are payable to comply with any regulations. GROSS PROFIT means the amount by which Your Turnover plus Your Closing Stock exceeds Your Opening Stock plus Your Uninsured Working Expenses. Note: The amount of the Opening Stock and Closing Stock shall be arrived at in accordance with Your normal accountancy methods allowing for depreciation. GROSS RENTALS means the Money paid to You or Monies billed by You in respect of rent or management fees for the Situation including rates, insurance premiums on the building tenanted, car parking rentals and other services rendered. GROSS REVENUE means the Money paid to You or Monies billed by You for goods sold, work done or services provided as part of Your Business. INDEMNITY PERIOD means the period beginning when the Business is first interrupted or interfered with in consequence of Loss Or Damage and ending no later than the number of months specified in the Schedule You have the option to defer the commencement of the Indemnity Period by up to 12 months from the date of the Event which causes Loss Or Damage, provided We have not already paid or agreed to pay a claim under this section of the Policy. INITIAL PERIOD is the period beginning with the Event and ending upon completion of the number of weeks shown in the Schedule. PAYROLL means the gross remuneration (including but not limited to wages, salaries, accident compensation, redundancy payments, levies, bonuses, sick pay, holiday pay, superannuation contributions and other payments pertaining to payroll calculated on "per capita" or percentage of Payroll basis), for all employees of the Business. 16 of 22 Delta Property 10/20 R0324 © Delta Insurance New Zealand Ltd. All rights reserved. REDUCTION IN TURNOVER means the amount that the Turnover, during any part of the Indemnity Period, falls short of the Standard Turnover as a result of Loss Or Damage. TURNOVER means the Money paid or payable to You for goods sold and delivered and for services rendered in the course of the Business at the Situation. If during the Indemnity Period goods are sold or services rendered elsewhere than at the Situation for the benefit of the Business either by You or by others on Your behalf, the Money paid or payable in respect of such sales or services shall be brought into account in arriving at the Turnover during the Indemnity Period. UNINSURED WORKING EXPENSES means purchases less discounts received, bad debts, or other expenses as may be stated in the Schedule. WAGES means all remunerations (including a pro-rata proportion of bonuses, holiday pay, accident compensation levies and any other charges relating to wages) of all employees other than those whose remunerations are treated as salaries in Your accounts. Definitions To Be Adjusted The following are to be adjusted so that they represent as closely as possible what the figures would have been during the Indemnity Period if the Loss Or Damage had not happened. In calculating the Rate Of Gross Profit, Standard Turnover, Standard Revenue and Standard Gross Rentals (as defined below) the financial year/ twelve month period prior to the damage shall be read as the period between the date of the commencement of Business and the date of damage. Rate Of Gross Profit The rate of Gross Profit, earned on the Turnover during the financial year immediately before the date of Loss Or Damage. Rate Of Payroll/Wages The rate of Payroll/Wages to Turnover during the financial year immediately before the date of Loss Or Damage. Standard Turnover The Turnover during the period in the 12 months immediately before the date of Loss Or Damage. Standard Revenue The Gross Revenue earned during the period in the 12 months immediately before the date of Loss Or Damage. Standard Gross Rentals The Gross Rentals during the period in the 12 months immediately before the date of Loss Or Damage. 13.0 General policy exclusions 13.1 Structural Defects Exclusion You are not covered for any Loss Or Damage or Business Interruption Loss of any type connected in any way with a Building being affected by: a. Moisture or water build-up or the penetration of external moisture or water, or b. the action or effects of mould, fungi, mildew, rot, decay, gradual deterioration, micro-organisms, bacteria, protozoa, or any similar or like forms, that is caused directly or indirectly by: i. faulty design or faulty specification, including but not limited to faulty sequence, procedure or program, or ii. faulty materials, or iii. faulty workmanship, when the building or structure was constructed, manufactured, altered, repaired, renovated or maintained. This exclusion does not apply, however: a. to Loss Or Damage or Business Interruption Loss that is caused by or directly arises from the leakage of internal pipes, internal water systems or internal cisterns. b. Where fire or explosion is the result of (b)(i), (ii) and (iii) above, then the Policy will insure against any Loss Or Damage or Business Interruption Loss directly caused by the fire or explosion, subject to all the terms of this Policy in so far as they can apply. 13.2 Infectious Diseases Exclusion You are not covered for Loss Or Damage or Business Interruption Loss in connection with a Notifiable Infectious Disease under the Health Act 1956. 13.3 War And Terrorism Exclusion Notwithstanding any provision to the contrary within this insurance or any endorsement thereto it is agreed that this insurance excludes loss, damage, cost or expense of whatsoever nature directly or indirectly caused by, resulting from or in connection with any of the following regardless of any other cause or event contributing concurrently or in any other sequence to the loss; 1. war, invasion, acts of foreign enemies, hostilities or warlike operations (whether war be declared or not), civil war, rebellion, revolution, insurrection, civil commotion assuming the proportions of or amounting to an uprising, military or usurped power; or 2. any act of terrorism. For the purpose of this exclusion an act of terrorism means an act, including but not limited to the use of force or violence and/or the threat thereof, of any person or group(s) of persons, whether acting alone or on behalf of or in connection with any organisation(s) or government(s), committed for political, religious, ideological or similar purposes including the intention to influence any government and/or to put the public, or any section of the public, in fear. This exclusion also applies to loss, damage, 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 1 and/ or 2 above. 17 of 22 Delta Property 10/20 R0324 © Delta Insurance New Zealand Ltd. All rights reserved. If We allege that by reason of this exclusion, any loss, damage, cost or expense is not covered by this insurance the burden of proving the contrary shall be upon the Insured. In the event any portion of this endorsement is found to be invalid or unenforceable, the remainder shall remain in full force and effect. 13.4 Electronic Data Exclusion Notwithstanding any provision to the contrary within the Policy or any endorsement thereto, it is understood and agreed as follows: a. This Policy does not insure loss, damage, destruction, distortion, erasure, corruption or alteration of Electronic Data from any cause whatsoever (including but not limited to COMPUTER VIRUS) or loss of use, reduction in functionality, cost, expense of whatsoever nature resulting therefrom, regardless of any other cause or event contributing concurrently or in any other sequence to the loss. b. Electronic Data means facts, concepts and information converted to a form useable for communications, interpretation or processing by electronic and electromechanical data processing or electronically controlled equipment and includes programmes, software and other coded instructions for the processing and manipulation of data or the direction and manipulation of such equipment. c. Computer Virus means 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. COMPUTER VIRUS includes but is not limited to 'Trojan Horses', 'worms' and 'time or logic bombs'. Computer includes computer hardware computer software microchip microprocessor any electronic equipment and any device which gives or processes or receives or stores electronic instructions or information. 13.5 Radioactive Contamination And Explosive Nuclear Assemblies This Policy does not cover Loss Or Damage to any property whatsoever or any Business Interruption Loss, expense, consequential loss or any legal liability of whatsoever nature directly or indirectly caused by or contributed to, by, or arising from: a. ionising radiations or contamination by radioactivity from any nuclear fuel or from any nuclear waste from the combustion of nuclear fuel; or b. the radioactive, toxic, explosive or other hazardous properties of any explosive nuclear assembly or nuclear component thereof. 13.6 Industries, Seepage, Pollution And Contamination This Policy does not cover any liability for: a. personal injury or bodily injury or Loss Or Damage to or loss of use of Insured Property or Business Interruption Loss directly or indirectly caused by seepage, pollution or contamination, provided always that this paragraph 1 shall not apply to liability for personal injury or bodily injury or Loss Or Damage to or destruction of Insured Property, or loss of use of such Insured Property damaged or destroyed, or Business Interruption Loss where such seepage, pollution or contamination is caused by a sudden, unintended and unexpected happening during the Period Of Insurance. b. The cost of removing, nullifying or cleaning-up seeping, polluting or contaminating substances unless the seepage, pollution or contamination is caused by a sudden, unintended and unexpected Event during the Period Of Insurance. c. Fines, penalties, punitive or exemplary damages. 13.7 Biological Or Chemical Materials This Policy does not cover Loss Or Damage costs or expenses of whatsoever nature directly or indirectly caused by resulting from or in connection with the actual threatened malicious use of pathogenic or poisonous biological or chemical materials regardless of any other cause or event contribution concurrently or in any other sequence hereto. 13.8 Asbestos And Hazardous Substances This Policy does not cover Loss Or Damage, costs or expense directly or indirectly arising out of or resulting as a consequence of the manufacture, mining, processing, ownership, distribution, testing, remediation, removal, storage, disposal, sale, transportation, use of or exposure to asbestos or silica or polychlorinated biphenyl or materials or products containing such substances (or any other component building material hazardous to health) whether or not there is another cause of Loss Or Damage which may have contributed concurrently or in any sequence to the Loss Or Damage. 13.9 Sanctions This Policy does not cover and We will not be liable to pay any claim or provide any benefit under this Policy to the extent that the provision of such cover, payment of such claim or provision of such benefit would be in violation of any sanction, prohibition or restriction under United Nations resolutions or the trade or economic sanctions, laws or regulations of the European Union, United Kingdom, United States of America or New Zealand 13.10 Seismic Strengthening Notwithstanding any provision to the contrary within this Policy or any endorsement thereto, this Policy does not cover Loss Or Damage costs or expenses of whatsoever nature in connection with seismically strengthening Insured Property to a level greater than its level before the Loss Or Damage. The cost of seismically strengthening Insured Property to a level greater than its level before the Loss Or Damage will not be taken into account in determining whether any Insured Property is Destroyed. 14.0 General policy conditions 14.1 Cancellation You may cancel this Policy at any time with immediate effect by notifying Us in writing. If You do, We will refund any premium that is due to You based on the unused portion of the Period Of Insurance. You must pay any outstanding premium due for the used portion of the Period Of Insurance. We may cancel or modify the Policy at any time by advising You (or Your broker or agent) by letter or email. Cancellation will take effect at 4pm on the 30th day after the date of Our letter or email. We will refund any premium that is due to You based on the unused portion of the Period Of Insurance. 18 of 22 Delta Property 10/20 R0324 © Delta Insurance New Zealand Ltd. All rights reserved. 14.2 Goods And Services Tax (GST) Provided GST is recoverable by Us under the Goods and Services Tax Act 1985 (or any statutory amendment or re-enactment of the Act) then: a. All Sum Insured stated in the Policy exclude GST and; b. GST will be added, where applicable, to claim payments. 14.3 Inspection We may inspect Your property and operations at any time provided We give You prior notice and You shall provide all details and information We may reasonably require that relates to the subject of the insurance. Neither Our right to make inspections nor the making thereof nor any report in relation to such inspections may be used by You or any other party to determine or warrant that such operations are safe. 14.4 Misdescription This Policy will not be invalidated or prejudiced by: a. Any innocent or inadvertent alteration or mis-description of property or occupancy or any other innocent inaccuracy which does not affect the Sum Insured; b. Any innocent or inadvertent misrepresentation or non-disclosure of any material fact; c. The breach of any condition or warranty without Your knowledge and consent; d. Any act of an occupier whereby the risk of Loss Or Damage to Insured Property not occupied by You is increased without Your authority or knowledge or the authority or knowledge of Your representative; provided that: i. You complied with the landlord obligations and; ii. written notice is given to Us as soon as practicable once You become aware of the above and You agree to pay an appropriate additional premium and/ or agree to a change in terms and conditions if required by Us. For the purposes of this clause, each Insured (if more than one) will be treated as having been insured with a separate Policy. 14.5 Observance Of Terms And Conditions You must comply with all of the terms and conditions of this Policy insofar as they are relevant to You. The truth of any statements made by You shall be conditions precedent to any liability to Us to provide cover under this Policy. Nothing in this Policy affects Our common law rights, including the right to avoid the Policy for non-disclosure. 14.6 Other Insurance This Policy does not cover You for Loss Or Damage or Business Interruption Loss if it is insured to any extent under any other insurance policy. We will only pay the amount of any Loss Or Damage or Business Interruption Loss that is in excess of that recoverable under the other insurance policy. 14.7 Other Interests We will cover any person or entity having an insurable interest in the Insured Property. This includes contractors and subcontractors as co- insureds to the extent required by any contract. Subrogation is waived against such interested parties to the extent required by the contract. The words "unintended or unforeseen" in this section of the Policy are to be interpreted from the standpoint of the Insured person seeking cover in respect of such loss. Our liability to any other person or entity having an insurable interest in the Insured Property will be no greater than any liability We have to You. Any amount We pay to an interested party or parties will meet Our obligations to You under this Policy. 14.8 Subrogation Once We have accepted any part of Your claim under this Policy, We may assume Your legal right of recovery at Our cost. You shall provide all reasonable assistance to Us and our legal advisors in relation to any recovery action. If We initiate a recovery, We will include Your Excess and, at Your option, any other uninsured losses suffered by You. Where We do this, You must pay Your proportional share of the recovery costs, and subsequently the proceeds of the recovery will be shared on the same proportional basis, except that We will reimburse Your Excess first. 14.9 Commercial Cooking Warranty It is a condition of this Policy that You and anyone using cooking equipment for commercial gain at the Situation must take all of the following precautions: a. All deep fryers and other cooking equipment in which frying is carried out at the Situation must have close-fitting metal lids. The metal lid must be fitted and in the closed position outside normal working hours and when the fryer is not in operation. During working hours the metal lid must be readily available for immediate use at all times if required. b. A fire blanket, not less than 1.2 metres x 1.8 metres in size, must be installed in a conspicuous place in the vicinity of, but at a safe distance away from, the commercial cooking operation. The fire blanket must be readily accessible for immediate use at all times if required. c. At least one correctly labelled fire extinguisher, suitably rated “F” in accordance with AS/NZS1850:2009, must be mounted in a conspicuous place in the vicinity of, but at a safe distance away from, the commercial cooking operation. The fire extinguisher must be readily accessible for immediate use at all times if required. All fire extinguishers at the Situation must be serviced at least once a year and maintained in efficient working order at all times. 19 of 22 Delta Property 10/20 R0324 © Delta Insurance New Zealand Ltd. All rights reserved. d. A separate external non-adjustable and manually operated cut-out mechanism must be fitted to all deep fryers at the Situation. All cut- out mechanisms must automatically disconnect each heat source from the energy supply when the temperature of the cooking liquid reaches a maximum of 220 Centigrade. e. All cut-outs, thermostats, heating elements and associated controls must comply with all relevant New Zealand Standards/Codes of Practice and must be maintained in safe efficient working condition at all times and checked by a registered electrician at least once a year. f. All cooking equipment must comply with all applicable electrical/gas regulations at all times and must be maintained in good working order in accordance with the manufacturer’s recommendations. g. Each deep fryer at the Situation must have an on/off switch to the energy supply which is remote from the deep fryer. The switch must be in the ‘off’ position outside Your normal operating hours and when the premises are unattended. The switch must be readily accessible for immediate use at all times if required. h. A metal extraction hood must be installed above all deep fryers with a metal flue venting externally. Grease filters must be fitted in the flue and must be readily accessible for cleaning. Grease filters must be cleaned at frequent and regular intervals, but at least weekly. Extraction flues and ducting must be inspected monthly. Extraction flues and ducting must be cleaned frequently and at regular intervals, but at least every 6 months. All associated fans and blades must be inspected at least annually, and cleaned as necessary but at least once a year. i. All food, fat and food scraps must be removed from each deep fryer at the Situation at the end of each day’s operations. All cooking liquids to be disposed of must be stored in a closed metal container at all times until removal from the Situation. If You are not the occupier of the Situation or the operator of the cooking equipment, You must instruct the occupier or operator in writing that the above requirements are a condition of insurance and must be complied with at all times. If You or the occupier of the Situation or the operator of the cooking equipment fails to comply with any of the above and that failure causes and/or contributes in any way to Loss Or Damage to Insured Property, We may refuse to pay all or part of Your claim. For the purposes of this Warranty “cooking equipment” means deep fryers, frying pans, bench top or miniature deep fryers, woks and other similar equipment and appliances. Lloyd’s Specific Clauses Applicable to this Insurance Policy Microorganism Exclusion (Absolute) This Policy does not insure any loss, damage, claim, cost, expense or other sum directly or indirectly arising out of or relating to: mold, mildew, fungus, spores or other microorganism of any type, nature, or description, including but not limited to any substance whose presence poses an actual or potential threat to human health. This Exclusion applies regardless whether there is i. any physical loss or damage to Insured property; ii. any insured peril or cause, whether or not contributing concurrently or in any sequence; iii. any loss of use, occupancy, or functionality; or iv. any action required, including but not limited to repair, replacement, removal, cleanup, abatement, disposal, relocation, or steps taken to address medical or legal concerns. This Exclusion replaces and supersedes any provision in the Policy that provides insurance, in whole or in part, for these matters. 14/09/2005 LMA5018 Form approved by Lloyd’s Market Association Communicable Disease Endorsement 1. This Policy, subject to all applicable terms, conditions and exclusions, covers losses attributable to direct physical loss or physical damage occurring during the Period Of Insurance. Consequently and notwithstanding any other provision of this Policy to the contrary, this Policy does not insure any loss, damage, claim, cost, expense or other sum, directly or indirectly arising out of, attributable to, or occurring concurrently or in any sequence with a Communicable Disease or the fear or threat (whether actual or perceived) of a Communicable Disease. 2. For the purposes of this endorsement, loss, damage, claim, cost, expense or other sum, includes, but is not limited to, any cost to clean-up, detoxify, remove, monitor or test: 2.1 for a Communicable Disease, or 2.2 any property insured hereunder that is affected by such Communicable Disease. 3. As used herein, a Communicable Disease means any disease which can be transmitted by means of any substance or agent from any organism to another organism where: 3.1 the substance or agent includes, but is not limited to, a virus, bacterium, parasite or other organism or any variation thereof, whether deemed living or not, and 3.2 the method of transmission, whether direct or indirect, includes but is not limited to, airborne transmission, bodily fluid transmission, transmission from or to any surface or object, solid, liquid or gas or between organisms, and 3.3 the disease, substance or agent can cause or threaten damage to human health or human welfare or can cause or threaten damage to, deterioration of, loss of value of, marketability of or loss of use of property insured hereunder. 4. This endorsement applies to all coverage extensions, additional coverages, exceptions to any exclusion and other coverage grant(s). All other terms, conditions and exclusions of the Policy remain the same. 20 of 22 Delta Property 10/20 R0324 © Delta Insurance New Zealand Ltd. All rights reserved. Property Cyber and Data Exclusion 1. Notwithstanding any provision to the contrary within this Policy or any endorsement thereto this Policy excludes any: 1.1 Cyber Loss; 1.2 loss, damage, liability, claim, cost, expense of whatsoever nature directly or indirectly caused by, contributed to by, resulting from, arising out of or in connection with any loss of use, reduction in functionality, repair, replacement, restoration or reproduction of any Data, including any amount pertaining to the value of such Data; regardless of any other cause or event contributing concurrently or in any other sequence thereto. 2. In the event any portion of this endorsement is found to be invalid or unenforceable, the remainder shall remain in full force and effect. 3. This endorsement supersedes and, if in conflict with any other wording in the Policy or any endorsement thereto having a bearing on Cyber Loss or Data, replaces that wording. Definitions 4. Cyber Loss means any loss, damage, liability, claim, cost or expense of whatsoever nature directly or indirectly caused by, contributed to by, resulting from, arising out of or in connection with any Cyber Act or Cyber Incident including, but not limited to, any action taken in controlling, preventing, suppressing or remediating any Cyber Act or Cyber Incident. 5. Cyber Act means an unauthorised, malicious or criminal act or series of related unauthorised, malicious or criminal acts, regardless of time and place, or the threat or hoax thereof involving access to, processing of, use of or operation of any Computer System. 6. Cyber Incident means: 6.1 any error or omission or series of related errors or omissions involving access to, processing of, use of or operation of any Computer System; or 6.2 any partial or total unavailability or failure or series of related partial or total unavailability or failures to access, process, use or operate any Computer System. 7. System means: any computer, hardware, software, communications system, electronic device (including, but not limited to, smart phone, laptop, tablet, wearable device), server, cloud or microcontroller including any similar system or any configuration of the aforementioned and including any associated input, output, data storage device, networking equipment or back up facility, owned or operated by the Insured or any other party. 8. Data means information, facts, concepts, code or any other information of any kind that is recorded or transmitted in a form to be used, accessed, processed, transmitted or stored by a Computer System. Industries, Seepage, Pollution and Contamination Clause No. 3 This Insurance does not cover any liability for: 1. Personal Injury or Bodily Injury or loss of, damage to, or loss of use of property directly or indirectly caused by seepage, pollution or contamination, provided always that this paragraph 1. shall not apply to liability for Personal Injury or Bodily Injury or loss of or physical damage to or destruction of tangible property, or loss of use of such property damaged or destroyed, where such seepage, pollution or contamination is caused by a sudden, unintended and unexpected happening during the period of this Insurance. 2. The cost of removing, nullifying or cleaning-up seeping, polluting or contaminating substances unless the seepage, pollution or contamination is caused by a sudden, unintended and unexpected happening during the period of this Insurance. 3. Fines, penalties, punitive or exemplary damages. This Clause shall not extend this Insurance to cover any liability which would not have been covered under this Insurance had this Clause not been attached. Cancellation Clause Notwithstanding anything contained in this Insurance to the contrary this Insurance may be cancelled by Us at any time by written notice or by surrendering of this Contract of Insurance. This Insurance may also be cancelled by or on behalf of Us by delivering to the Insured or by mailing to the Insured, by registered, certified or other first class mail, at the Insured address as shown in this Insurance, written notice stating when, not less than 10 days thereafter, the cancellation shall be effective. The mailing of notice as aforesaid shall be sufficient proof of notice and this Insurance shall terminate at the date and hour specified in such notice. If this Insurance shall be cancelled by the Insured We shall retain the customary short rate proportion of the premium hereon, except that if this Insurance is on an adjustable basis We shall receive the Earned Premium hereon or the customary short rate proportion of any Minimum Premium stipulated herein whichever is the greater. If this Insurance shall be cancelled by or on behalf of Us We shall retain the pro rata proportion of the premium hereon, except that if this Insurance is on an adjustable basis We shall receive the Earned Premium hereon or the pro rata proportion of any Minimum Premium stipulated herein whichever is the greater. Payment or tender of any Unearned Premium by Us shall not be a condition precedent to the effectiveness of Cancellation but such payment shall be made as soon as practicable. If the period of limitation relating to the giving of notice is prohibited or made void by any law controlling the construction thereof, such period shall be deemed to be amended so as to be equal to the minimum period of limitation permitted by such law. Biological or Chemical Materials Exclusion It is agreed that this Insurance excludes loss, damage, cost or expense of whatsoever nature directly or indirectly caused by, resulting from or in connection with the actual or threatened malicious use of pathogenic or poisonous biological or chemical materials regardless of any other cause or event contributing concurrently or in any other sequence thereto. 21 of 22 Delta Property 10/20 R0324 © Delta Insurance New Zealand Ltd. All rights reserved. Embrace Change. Delta Insurance New Zealand Limited Level 22 48 Shortland Street Auckland Central Auckland 1010 22 of 22 Delta Property 10/20 R0324 © Delta Insurance New Zealand Ltd. All rights reserved. --- ## Dual New Zealand — DUAL New Zealand MDBI (04.22) > _Markdown transcription of Dual New Zealand DUAL New Zealand MDBI (04.22) policy wording, effective 2022-04-01. Source: https://nz.dualinsurance.com/hubfs/DUAL%20ANZ/DUAL%20New%20Zealand/NZ%20policy%20wording/DUAL-NZ-MDBI-Wording.pdf_ --- DUAL Property Insurance Material Damage & Business Interruption 1 DUAL New Zealand Material Damage and Business Interruption Wording 04.22 DUAL New Zealand Material Damage and Business Interruption Wording Contents Insurance Clause 3 Definitions Applicable to Sections 1 and 2 3 Section 1 – Material Damage 5 Exclusions to Section 1 5 Conditions to Section 1 7 Extensions to Section 1 10 Section 2 – Business Interruption 22 Interests Insured Under Section 2 22 Extensions to Section 2 28 Conditions to Section 2 30 General Conditions Applicable To Sections 1 and 2 32 General Exclusions Applicable To Sections 1 and 2 35 Endorsements 39 Australian Locations 39 2 DUAL New Zealand Material Damage and Business Interruption Wording 04.22 Insurance Clause In consideration of the Insured named in the Schedule having paid or promised to pay the required premium, the Insurers named in the Schedule will indemnify the Insured as set out in this Policy. Except where provided to the contrary, the Insurers’ liability in total during the Period of Insurance will not exceed the Sum(s) Insured stated in the Schedule and, if more than one Item is included in the Schedule, will not exceed in respect of each Item the Sum Insured applicable to that Item. Definitions Applicable to Sections 1 and 2 These definitions apply to any derivatives of the words defined below. ‘Accidental’ means unintended and unforeseen by the Insured. ‘Breakdown’ means the actual breaking, seizing, deformation or burning out of any part of the machinery or equipment while in use; the cause being a defect in the machinery or equipment while in use; the result being a stoppage in the function of the machinery or equipment; and repair or replacement being necessary before the machinery or equipment can resume working. ‘Building’ means any building, other structure, and its appurtenances at the Premises listed under Section 1 in the Schedule. This includes but not restricted to the plant, fixtures, fittings, pipes and cables pertaining to the building or structure, and includes any fixed sign and lettering, tank, pole, power line and its supports, wall, gate, fence, road, path, yard and the like. ‘Business’ means the business described in the Schedule. ‘Contents’ means the contents of a Buildings, and includes plant, chattels in the open or under shelter, tenants improvements and all other tangible property not more specifically defined, all being owned by the Insured or held by the Insured in trust or on commission, or for which the Insured is under a contractual obligation to arrange insurance. ‘Damage’ means Accidental physical loss of or Accidental physical damage to, or destruction of, Insured Property. ‘Deductible’ means the applicable amount stated in the Schedule. ‘Event’ means loss or series of losses directly occasioned by and arising from one and the same event. Where an Event occurs over a period of more than 72 consecutive hours, one Deductible will be deducted for every 72 consecutive hour period. ‘Indemnity Value’ means the value of Insured Property at the time of Damage, being an amount sufficient to place the Insured back in the same financial position to that immediately prior to the Damage. ‘Indemnity Period’ means the period, beginning with the occurrence of the Damage and continuing for the maximum period stated in the Schedule, during which the results of the Business are affected in consequence of the Damage. ‘Insured’ as named in the Schedule. ‘Insured Property’ means tangible property of every description not expressly excluded, the Insured’s own or held by the Insured jointly or in trust or on commission and for which the Insured is responsible that comes within the following defined words: • Buildings • Contents • Stock • Other Property ‘Insurers’ as named in the Schedule. 3 DUAL New Zealand Material Damage and Business Interruption Wording 04.22 ‘Money’ means current coin, bank notes, cheques, postal notes, traveller’s cheques, money orders, postage stamps, franking machine credits, tickets, unrealised credit card vouchers or other negotiable instruments. ‘Natural Disaster’ means any of the following: earthquake, subterranean fire, volcanic eruption, tsunami, geothermal activity, hydrothermal activity or fire occasioned by or through or in consequence of any of these. ‘Other Property’ means any specific items that the insured individually described as Other Property under Section 1 of the Schedule. ‘Period of Insurance’ means the period specified in the Schedule. ‘Policy’ means all documents (both physical and electronic) relating to this insurance including: 1. this policy document; and 2. the Schedule; and 3. any endorsements or warranties that the Insurers’ apply, and the information that has been provided in the statements, proposal(s) and documentation on which this insurance is based. ‘Premises’ means any premises listed under Section 1 in the Schedule. ‘Schedule’ means the most recent Policy Schedule to this Policy document. ‘Stock’ means stock in trade and includes stock owned by the Insured or held by the Insured in trust or on commission and for which the Insured is responsible, or for which the Insured is under a contractual obligation to arrange insurance. ‘Sum Insured’ the most the Insurers will pay as stated in this Policy or in the Schedule. ‘Territory’ means within the territory or locations named in the Schedule. 4 DUAL New Zealand Material Damage and Business Interruption Wording 04.22 Section 1 – Material Damage If, during the Period of Insurance, Damage to Insured Property happens at the Premises anywhere in the Territory, the Insurers will indemnify the Insured for that Damage subject to the terms of this Section of the Policy. Exclusions to Section 1 This Section does not cover: 1. Boilers and Pressure Vessels 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, but this exclusion only applies to the vessel in which the explosion, rupture, bursting, cracking, leakage, or collapse occurs and does not apply to Damage to Insured Property by chemical explosion. 2. Breakdown Mechanical or electrical Breakdown of machinery or electrical equipment, but this exclusion only applies to the machine or equipment in which the Breakdown occurs and does not apply to resultant Damage to other Insured Property that is not otherwise excluded. 3. Contract Works Insured Property in the course of installation, construction, demolition, erection, or testing following any of them. 4. Disappearance Damage directly resulting from shortages revealed only by the taking of an inventory or shortages due to clerical or accounting errors. 5. Electronic Date Recognition Any Damage, cost, claim or expense, whether preventative, remedial or otherwise, directly or indirectly arising out of or relating to: a. 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, by any computer system, hardware, programme or software and/or any microchip, integrated circuit or similar device in computer equipment or non-computer equipment, whether the property is of the Insured or not; or b. any change, alteration, or modification involving the date change to the year 2000, or any other date change, including leap year calculations, to any such computer system, hardware, programme or software and/or any microchip, integrated circuit or similar device in computer equipment or non-computer equipment, whether the property is of the Insured or not. This Exclusion applies regardless of any other cause or event that contributes concurrently or in any sequence to the loss, Damage, cost, claim or expense. 6. Faulty Materials, Workmanship or Design The cost of: a. repairing or replacing defective materials; b. putting right defective workmanship; c. putting right work performed to a defective design plan or design specification. 5 DUAL New Zealand Material Damage and Business Interruption Wording 04.22 However, this Exclusion does not apply to any Damage occurring as a result of the defective materials, workmanship, or work. 7. Fumes, Dust, Smoke, Soot Damage to the Insured Property, or part immediately affected, caused by or arising out of fumes, dust, smoke or soot; but this Exclusion does not apply to any resultant Damage to other Insured Property. 8. Interruption 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. 9. Land Movement Damage to Insured Property directly caused by, or resulting from, subsidence, landslip or erosion of land. 10. Natural Disaster Damage to Insured Property directly caused by, or resulting from, Natural Disaster unless specified with a Sum Insured in the Schedule. 11. Nature of the Property 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, or colour or texture or finish) or the action of light. 12. Normal Damage Damage to Insured Property comprising wear and tear, erosion, corrosion, slowly developing deformation or distortion or the consequences of normal working; or arising out of or from mould, rot, vermin or insects. Nor does this insurance cover the cost of normal maintenance. However, this Exclusion does not apply to resultant Damage to Insured Property not otherwise excluded. 13. Order of Authorities 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 peril of a kind insured against under this Policy. 14. Pollution Damage to the Insured Property, or part immediately affected, caused by or arising out of pollution or contamination unless the pollution or contamination itself is caused by an Accidental event not otherwise excluded. 15. Precious Goods 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. 16. Pre-Existing Damage or Deferred maintenance Any Damage, cost or expense of whatsoever nature directly or indirectly caused by, resulting from or in consequence of any Insured Property hereunder where such property has pre-existing damage or deferred maintenance, at the inception date of this insurance. 17. Process Damage to Insured Property caused by the normal operation of a process where the Damage is a direct and natural consequence of the process. 6 DUAL New Zealand Material Damage and Business Interruption Wording 04.22 18. Theft Damage to Insured Property directly resulting from theft: a. by any of the Insured’s employees; or b. by any other person unless accompanied by violence or threat of violence to any person or by violent or forcible entry to or exit from the Premises. However, if a special limit for Theft appears in the Schedule, part (b) of this Exclusion will only apply to loss in excess of that limit. 19. Utilities 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. Conditions to Section 1 a. Claims Upon becoming aware of any occurrence or circumstance giving rise, or likely to give rise, to a claim under this insurance, the Insured must: a. take prompt steps to minimise the Damage; b. take reasonable steps to protect Insured Property from further Damage; c. immediately notify the Insurers; d. if a criminal act is suspected, inform the police; e. as soon as practicable, submit full particulars of the claim in writing to the Insurers; f. provide the Insurers with any reasonably required proof and information in respect of the claim. b. Warranties for Premises with Composite Panel Construction In respect of Premises constructed with or containing Composite Panel Construction, the Insured warrants that: a. all Buildings to have maintained operational heat or smoke detection. b. the electrical supplies are to be checked by a registered electrician on a maximum three-year rolling basis and a certificate issued as to their adequacy. This check must include the use of thermo-graphic scanning on all major electrical components. c. all electrical service penetrations are to be run in appropriate plastic conduit and where appropriate sealed at the penetration. d. there shall be a weekly inspection (and logbook kept) of the composite panel and any breaches of the metal sheathing or unsealed service penetrations must be repaired immediately. e. no waste bins, idle pallets or other combustible materials are to be stored within 5 metres of any external composite panel wall. f. forklift truck or other battery charging facilities are to be against non-combustible walls or, where against a composite panel, they must be fitted with a non- combustible metal or other barrier extending a minimum of 1.8 metres horizontally (both sides) and vertically between the charger and the wall. g. all hose reels and fire extinguishers are to be serviced on an annual basis. h. no open flame gas heaters and the like are to be situated adjacent to composite panel walls 7 DUAL New Zealand Material Damage and Business Interruption Wording 04.22 i. no potential must exist for the foam core to be exposed to temperatures in excess of 75 degrees Celsius. Any hot flue ducts and the like are to be adequately fire separated from the composite panel. j. any grease, oils or solid particle carrying flues, vents or ducts are to be inspected regularly and cleaned. k. a welding and hot work permit system is to be in place and operational. There shall be a total prohibition on welding or other hot work on or within the vicinity of composite panel without executive sign off prior to any work being carried out. Precautions shall include the use of welding screens and blankets, fire watch and adequate first aid firefighting equipment and post “hot work” checks. c. Deep Frying Warranty In respect of Premises in which deep frying is carried out, the Insured warrants that: a. a secondary non-adjustable manually reset thermostat (known as an over-temp cut out) is fitted to each deep fat frying pan that will disconnect each heating element from the power supply when the temperature of the cooking liquid in the pan reaches 220 degrees centigrade. b. an easily accessible remote switch is in the “off” position when the fryer is not in use. c. each pan is fitted with a close-fitting steel lid which will be shut down when the pans are not in use. d. a fire blanket is installed in a position where it can be readily accessed in the event of fire in any pan. e. one fully charged wet chemical extinguisher of not less than 3 litres capacity shall be mounted in a conspicuous and readily accessible place no closer than 2 metres from, and be the nearest extinguisher to, the fryer. f. all pans, their thermostats and protection devices are at all times maintained in good working order in accordance with manufacturer’s recommendations. g. extraction filters are cleaned weekly and extraction flues, ducting and fans are inspected monthly and cleaned as necessary but at least six-monthly. h. all cooking liquids for disposal are at all times stored in a metal bin with a close-fitting lid until removal from the Premises. d. Deep Frying Warranty (Bench top or Miniature Deep Fryers) In respect of Premises in which deep frying is carried out with pans that do not have dual thermostats, the Insured warrants that: a. each pan is fitted with a close-fitting lid which must be shut when the pans are not in use. b. a fire blanket and container are installed in a position where it can be readily accessed in the event of fire in any pan. c. one fully charged wet chemical extinguisher of not less than 3.5 litres capacity shall be mounted in a conspicuous and readily accessible place no closer than 2 metres from, and be the nearest extinguisher to, the fryer. d. all pans, their thermostats and protection devices are at all times maintained in good working order in accordance with manufacturer’s recommendations. e. any extraction filters are cleaned monthly and extraction flues, ducting and fans are inspected quarterly and cleaned as necessary but at least six-monthly. f. all cooking liquids for disposal are at all times stored in a metal bin with a close-fitting lid until removal from the Premises. e. Margin Clause – Limit of Liability Notwithstanding the Sums Insured stated in the Schedule, the Insurers’ liability in respect of Damage to insured Property in each of the categories of ‘Contents’, ‘Stock’, and any ‘Other Property’ at each Premise stated in the 8 DUAL New Zealand Material Damage and Business Interruption Wording 04.22 Schedule will not exceed 110% of the Sum Insured stated in the Schedule for that category at that Premise. Nothing in this condition is to be construed as increasing the Insurers’ liability beyond the Sum(s) Insured under Section 1 of the Schedule. This memorandum only applies in the event that there are more than one Premise is listed under Section 1 of the Schedule. This memorandum does not apply to Damage to Insured Property directly caused by or resulting from Natural Disaster. f. Other Interests Where the Insured is under an obligation to insure the interest of any mortgagee, debenture holder, lessor, agent or any other person with an insurable interest in Insured Property, this Policy extends to indemnify that mortgagee, debenture holder, lessor, agent, other person, or any of them, together with the Insured, for their respective rights and interests. g. Progress Claim Payments In the event of Damage to Insured Property giving rise to a claim under this insurance, the Insurers will make progress claim payments on production of acceptable evidence of insured Damage. If the aggregate of progress payments exceeds the total amount payable under this Policy, the Insured shall immediately refund the difference between the total amount payable and the aggregate of payments actually made. h. Salvage Where the Insurers have agreed to indemnify the Insured for Damage to Insured Property, the Insurers may: a. enter any building where the Damage to Insured Property has occurred and take and keep possession of the Damaged property; and b. deal with the salvage in any reasonable manner. However: a. the Insured shall not be entitled to abandon any Insured Property to the Insurers; and b. the Insurers will not be entitled to sell or otherwise dispose of salvaged branded goods without the prior consent of the Insured. In the event of the Insured declining to give consent, the Insured shall retain possession of the salvaged goods and their reasonable salvage value will be deducted from the amount of claim that would otherwise be payable. Where it is practical to remove brands labels or other marks, which identify the goods as supplied by the Insured, the salvage value of the goods will be determined after such removal at the Insurers’ expense. i. Stock Declaration Conditions The premium charged for the cover on Stock is provisional. It is adjustable at the end of the Period of Insurance in accordance with the following conditions: a. declarations of the actual value of the insured Stock held on the last day of each month within the Period of Insurance must be made to the Insurers not later than six weeks after the end of each month. b. the Sum Insured on Stock is the limit of the Insurers’ liability in respect of that Stock. If any monthly declaration exceeds that amount, then in computing the average of the monthly declarations, the Sum Insured on Stock will be included in place of the actual declaration for that month. c. if no declaration is received for any one month, the Sum Insured on Stock will apply in place of the declaration for that month. d. the average of these monthly declarations will be computed at the end of the Period of Insurance and the actual premium payable will be assessed on that average (or on one half of the Sum Insured on Stock, whichever is greater). 9 DUAL New Zealand Material Damage and Business Interruption Wording 04.22 e. the Insurers will refund to the Insured the amount by which the provisional premium paid exceeds the actual premium payable as calculated above. Alternatively, the Insured shall pay to the Insurers the amount by which the provisional premium paid falls short of the actual premium. Extensions to Section 1 In the event of any conflict or inconsistency between this Section of the Policy and any Extension incorporated in this Section, the terms of the Extension will prevail. In the event of any conflict or inconsistency between Extensions, the Extension most favourable to the Insured will prevail. Unless otherwise stated, all cover under these Extensions is included within the Sum(s) Insured for the applicable Insured Property. Unless otherwise stated, each Extension only applies if a limit or Sum Insured is stated for it in the Schedule. The Insurers’ liability, in respect of loss or Damage to Insured Property, is limited to the Sub Limit specified in the Schedule for each Extension below in respect of any one Event. The Insurers will indemnify the Insured in accordance with this Policy for any of the following: 1. Alternative Residential Accommodation The reasonable costs of alternative accommodation where any residential accommodation insured by this Policy is rendered uninhabitable by an insured contingency necessarily incurred by the Insured or by the occupant (being an employee of the Insured) provided that: a. the costs are not otherwise insured; b. the period for which the costs are covered will not exceed the period reasonably required for reinstatement of the affected accommodation; c. the Insurers will be entitled to deduct a reasonable allowance for costs reduced or avoided in consequence of the affected accommodation being rendered uninhabitable; and d. the amount recoverable under this Extension will be limited to an amount equal to 25% of the cost of reinstating Insured Property following Damage to Insured Property, to a maximum of $10,000. 2. Capital Additions Additions to: a. any newly acquired Buildings, machinery, plant, or other similar property, but not Stock; b. alterations, additions and improvements to buildings, machinery, plant, or other similar property, but not Stock at any Premises specified in the Schedule. Provided that: c. the Insured must give particulars to the Insurers within 28 days of the last day of each quarter of the Period of Insurance of any extension of cover becoming operative during the preceding quarter. Following notification of the particulars, the Insured must pay the appropriate additional premium on the insured Property, retrospective to the date on which the cover became operative; d. the provisions of this Extension will be fully reinstated following notification of particulars in accordance with paragraph b) above; e. cover under this Extension will be deemed to have become operative upon the date on which the risk in the insured Property passes to the Insured; f. this Extension does not apply to any appreciation in value of Insured Property that is not consequent upon any acquisition, alteration, addition or improvement covered by this Extension; g. unless the Insured gives notice to the contrary, the insurance on Insured Property described in a) and b) above will be subject to the Reinstatement of Property Extension. 10 DUAL New Zealand Material Damage and Business Interruption Wording 04.22 The Insurers’ liability, in respect of any one Event of Damage to Insured Property, is limited to the Sum Insured specified in the Schedule for Capital Additions. This amount is payable in addition to the Sum(s) Insured of the applicable insured Property. 3. Claim Preparation Costs The reasonable cost of fees (excluding legal fees) incurred by or on behalf of the Insured for the purpose of assessing insured Damage to insured Property, preparing a claim on the insurance, or both. 4. Constructive Loss If, in the event of Damage to Insured Property, any local authority refuses to issue the necessary permit or permits for reinstatement of the Insured Property and, in consequence of that refusal, the Insured is prevented from making reasonable use of the Damaged Insured Property and any other structures on the same site, then the Damaged Insured Property and other structures will be deemed constructively totally lost for the purpose of claims under this insurance. In determining whether reasonable use can be made of the affected Insured Property and any other structures, due account will be taken of the reasonable requirements of the Insured’s Business at the site. 5. Contract Works Notwithstanding Exclusion 3 in Section 1, Damage to contract works undertaken at the Premises during the course of installation, construction, demolition, erection or testing. The Insurers’ liability under this Extension is limited to Damage arising out of contracts where the contract price does not exceed the Sum Insured specified in the Schedule. This amount is payable in addition to the Sum(s) Insured of the applicable Insured Property. 6. Damage by Electric Current Notwithstanding Exclusion 2 in Section 1, Damage to Insured Property caused by the actual burning out of part or parts of the Insured Property by artificially generated electric current in them. However, this Extension of cover does not apply to Damage to lighting heating elements, fuses or protective devices, electrical contracts at which sparking or arcing occurs in ordinary working. The Insurers’ liability, in respect of any one Event of Damage to Insured Property, is limited to the Sum Insured specified in the Schedule for Damage by Electric Current. This Extension does not apply to Damage that would be recoverable under this insurance in the absence of the Extension. 7. Demolition and Removal of Debris The following costs which are incurred in consequence of Damage to Insured Property for which a claim is payable under this Policy: a. costs incurred in the necessary demolition, dismantling, shoring up or propping of the Damaged Insured Property, disposal of debris (whether or not the debris is part of the Insured Property), and the recovery, removal, storage, and return of chattels whether Damaged or undamaged; b. costs actually incurred for temporary repairs and other measures necessary to secure the Damaged Insured Property or to make it safe or suitable for continued use. Where any costs are in connection with the removal of asbestos, the maximum the Insurers’ will pay for any Event is: a. 5% of the Building Sum Insured at the Premises; or b. $100,000, whichever is the lesser. 11 DUAL New Zealand Material Damage and Business Interruption Wording 04.22 8. Employees Effects Employees’ personal effects (including Money) as if the effects were owned by the Insured, but only while the effects are in or about Premises owned or occupied by the Insured, or elsewhere while being worn, kept, carried or used by employees acting in the course of their employment. The Insurers’ liability, in respect of any one Event of Damage to Insured Property, is limited to the Sum Insured specified in the Schedule for Employees Effects. 9. Expediting Costs Such additional costs of express freight and overtime labour as are reasonably incurred where a claim is payable under this insurance for the cost of reinstating any of the Insured Property, for the purpose of expediting that reinstatement. 10. General Average General Average and salvage charges payable according to Foreign Statement or to York Antwerp Rules if in accordance with the contract of affreightment, but only where the charges are payable in consequence of threat to a ship carrying Insured Property. This Extension of cover is not subject to any Deductible. 11. Gradual Damage Notwithstanding Exclusion 12 in Section 1, this Policy extends to cover Damage to Insured Property discovered during the Period of Insurance resulting from hidden rot, hidden mildew or hidden gradual deterioration, caused by water that leaks, overflows or is discharged from any internal tank (being a tank that is plumbed into the water reticulation system of the building and is permanently used to store water), internal water pipe or internal waste disposal pipe installed at the Building. The Insurers’ liability for each Event of Damage to Insured Property is limited to the Sum Insured specified in the Schedule for Gradual Damage. 12. Landslip Notwithstanding Exclusion 9 in Section 1, Damage to Insured Property caused by landslip. However, this Extension of cover does not apply to Damage for which a claim would also be payable under the Subsidence Extension. The Insurers’ liability for each Event of Damage, is limited to the Sum Insured specified in the Schedule for Landslip. The Deductible specified in the Schedule or $10,000, whichever is the greater applies to this Extension. 13. Lost or Stolen Keys The costs reasonably and necessarily incurred in altering or replacing locks and replacing their keys where any key giving access to Insured Property is lost, stolen or believed on reasonable grounds to have been duplicated without proper authority during the Period of Insurance. This insurance also extends to cover the reasonable cost of opening any safe or strong room following theft or loss of its key or combination. For the purpose of this Extension, ‘key’ includes any equivalent device for opening locks. The Insurers’ liability for each Event of Damage, is limited to the Sum Insured specified in the Schedule for Lost or Stolen Keys 12 DUAL New Zealand Material Damage and Business Interruption Wording 04.22 14. Machinery Breakdown Notwithstanding Exclusion 2 in Section 1, this Policy extends to cover mechanical or electrical or electronic breakdown of machinery or electrical equipment being Insured Property, with no reduction being made for parts replaced where Damage is repaired. For Insured Property that is uneconomic to repair, the basis of settlement will be the replacement cost for items less than 10 years old, and Indemnity Value for any items 10 years of age or older The Insurers will not be liable under this Extension for: a. damage to belts, ropes, wires, chains, tyres, dies, exchangeable tools, engraved cylinders, glass components, porcelain components, ceramics, refractories, felts, sieves, fabrics, jointing, packaging and operating media (except loss of refrigerant or insulating oil); b. wasting or wearing away or wearing out of any part caused by or naturally resulting from ordinary use or working, gradual deterioration, Damage due to cavitation scratching of painted or polished surfaces; c. the cost of carrying out alterations, additions, improvements, overhauls or maintenance. The cover provided by this Extension will not increase the Insurers’ liability in respect of any one Event of Damage beyond the Sum Insured specified in the Schedule for Refrigerated Goods. The Insurers’ liability for each Event of Damage, is limited to the Sum Insured specified in the Schedule for Machinery Breakdown. Provided that, for any claim under this Extension to be admitted, the machinery or electrical equipment must as a minimum have been maintained and serviced in accordance with the manufacturer’s instructions. 15. Money Notwithstanding General Exclusion 5, Damage to the Insured’s Money as follows: Money A: a. while in transit; or b. while at any of the Insured’s sites of contract during Business hours; or c. while at the Insured’s Premises during Business hours; or d. while in a locked safe or strong room outside Business hours. Money B: a. while in residences of the Insured’s authorised principals or employees; or b. while in the Insured’s Premises or sites of contract outside Business hours and while not in a locked safe or strong room. Special Exclusions The insurance under this Extension does not cover: a. loss recoverable under insurance arranged by professional Money carriers; or b. loss of Money entrusted to any person other than the Insured, the Insured’s principals, its employees or its authorised agents; or c loss due to fraud or dishonesty of any employee of the Insured unless the loss is discovered within 72 hours (excluding Saturdays and Sundays and statutory holidays) of its occurrence; or d. loss due to shortages resulting from clerical or accounting error. The Insurers’ liability, in respect of any one Event of Damage to Insured Property, is limited to the Sum Insured specified in the Schedule for Money. This amount is payable in addition to the Sum(s) Insured. 13 DUAL New Zealand Material Damage and Business Interruption Wording 04.22 16. Natural Disaster Notwithstanding Exclusion 10 in Section 1, Damage to Insured Property directly caused by or resulting from Natural Disaster. The Insurers’ liability under this Extension is subject to the Sum Insured specified in the Schedule for Natural Disaster. This Extension does not apply to Damage that would be recoverable under this insurance in the absence of the Extension. In the event of the Insured having insured residential property for which compulsory Natural Disaster Damage cover under the Earthquake Commission Act 1993 applies then in the event of such property suffering Natural Disaster Damage during the Period of Insurance and covered by Natural Disaster Damage cover as provided under Earthquake Commission, then the Insurers’ liability will be limited to the difference between the amount of the Natural Disaster Damage cover and the applicable Sum Insured. In the event that Natural Disaster is covered under this Policy the Insurers’ liability shall not exceed the Sum Insured for that item. The Sum Insured shall include any amounts paid or payable to the insured by the Earthquake Commission under the Earthquake Commission Act 1993. Example: The sum insured is $300,000. You suffer a total loss. The Earthquake Commission pays you $100,000. The maximum sum you will recover from the Insurers is $200,000, less any Deductible applicable. The applicable Deductible would be the difference between the Deductible as stated in the Schedule and the amount recoverable from EQC but only if the Deductible stated in the Schedule is greater than the amounts paid or payable to the Insured by the Earthquake Commission. 17. Professional and Other Fees All professional and clerk of works fees, salaries and costs necessarily incurred in the reinstatement of Damage to Insured Property by an insured peril. This Extension does not cover fees for preparing claims on this insurance. 18. Protection Costs Costs or Damage directly resulting from, or reasonably incurred by or imposed on the Insured for the purpose of protection against or fighting any fire or other insured peril that either involves or threatens to involve Insured Property. The Insurers’ liability for each Event of Damage, is limited to the Sum Insured specified in the Schedule for Protection Costs. In respect of claims payable under this Extension, the Deductible specified in the Schedule is amended to $100. 19. Records The expression ‘tangible property’ is deemed to include documents, manuscripts, computer systems media, Business books, microfilm, technical drawings and other records. Insured Property of these descriptions is covered by this insurance, but only for its value as materials plus the cost of collecting and reproducing the information on them. The value of the information is not insured. The Insurers’ liability for each Event of Damage is limited to the Sum Insured specified in the Schedule for Records. 20. Redundant Foundations Where the foundations of Insured Property are rendered redundant for any reason in sole consequence of Damage to the Insured Property resting on them, the affected foundations will be deemed constructively totally lost for the purpose of claims on this insurance. If it is not necessary to demolish the foundations in order to effect reinstatement of Damage, and if the presence of the abandoned foundations increases the market value of the Insured Property to which they are fixed, the amount of increase will be treated as salvage and will be deducted from the amount of claim payable by the Insurers. 14 DUAL New Zealand Material Damage and Business Interruption Wording 04.22 21. Redundant Plant Where, in sole consequence of Damage to Insured Property comprising plant, any undamaged or salvaged: a. plant in the same interdependent system or line; and b. spare parts held exclusively for the lost or Damaged plant or other plant in that system or line; are rendered redundant. The redundant plant and parts will be treated for the purpose of this insurance as lost by the same Event that caused the Damage. Claims payable under this Extension will be net of any realisable salvage value of the redundant plant and parts. 22. Refrigerated Goods Notwithstanding Exclusion 19, in Section 1, Damage to the Insured’s goods stored in refrigerated cabinets or chambers and costs reasonably incurred to avoid or minimise the Damage by transferring the threatened goods to alternative storage or by other means arising from Accidental stoppage or malfunction of refrigerating plant from any cause except as provided in the General Exclusions Applicable to Sections 1 and 2 and as provided below: Provided that: a. The words ‘goods stored’ are deemed to include goods anywhere on the Insured’s Premises at the time of the Damage causing Event and that would, but for the Event, have been placed in the refrigerated cabinets or chambers. b. This Extension does not cover Damage due to the disconnection of the public electricity supply by the supplier where prior notice of the disconnection has been given at the time of the Damage. c. The Insurers’ liability under this Extension will not exceed the Sum Insured specified in the Schedule for Refrigerated Goods. d. This Extension does not apply to Damage that would be recoverable under this insurance in the absence of this Extension. 23. Reinstatement of Property For property specified as Buildings, Contents and Other Property under Section 1 of the Schedule designated with the letters “RV”, “FRV” or “SRV”, the basis of settlement will be as set out as below. A. Reinstatement (RV) Where any Insured Property to which this Extension applies is Damaged, then, subject to the Special Provisions set out below, the basis on which the amount payable under Section 1 of this Policy is to be calculated will be the cost of its Reinstatement. DEFINITIONS: a. ‘Destroyed’ means so Damaged that the Building, Contents or Other Property by reason only of that Damage cannot be repaired or the cost of repairs is uneconomic. b. ‘Equivalent Building’ means: i. a building or structure that is as nearly as practicable the same as the building or structure lost or Destroyed, using currently equivalent materials and techniques and incorporating such alterations as are necessary to comply with any Regulations. ii. where, as a result of any special circumstances, no building or structure that falls within the scope of paragraph b) (i) can be constructed, a building or structure that 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. 15 DUAL New Zealand Material Damage and Business Interruption Wording 04.22 iii. where, as a result of any special circumstances, no building or structure that falls within the scope of paragraph b) (i) is suitable to the Insured’s reasonable requirement, a building or structure that is designed to perform a purpose or 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 to an equivalent capacity. d. ‘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, but including any alterations that may be necessary to comply with any Regulations. e. ‘Regulations’ means any statutory, regulatory or code requirement imposed by the authority of any Act of Parliament or regulation or by-law promulgated by any lawful authority. f. ‘Site’ means any parcel of land owned or occupied by the Insured. g. ‘Undamaged’ means not Damaged physically and directly by an Event insured under this Section of the Policy. B. Functional Replacement Value (FRV) In respect of any Insured Property designated as Functional Replacement Value (FRV) in Section 1 of the Schedule, the basis of settlement for A. Reinstatement (RV) above applies, except the Definitions in this Extension are amended as follows: Definition b) ‘Equivalent Building’ is deleted and replaced by the following: i. new property having a similar purpose or function; or ii. new property having any other purpose or function suitable to the requirements of the current Business at the situation, as that of the property lost or Destroyed using currently equivalent materials and techniques and incorporating such alterations as are necessary to comply with any Act of Parliament or Regulation. Definition c) ‘Equivalent Plant’ is deleted and replaced by the following: i. new property having a similar purpose, function or capacity; or ii. new property having any other purpose or function suitable to the requirements of the current Business at the situation, but not greater capacity unless new property with an equivalent capacity is not available and the new property is the nearest available to an equivalent capacity, as that of the property lost or Destroyed and incorporating such alterations as are necessary to comply with any Act of Parliament or Regulation. C. Specified Replacement Value (SRV) In respect of any Insured Property designated as Specified Replacement Value (SRV) in Section 1 of the Schedule, the basis of settlement for A. Reinstatement (RV) above applies, except the Special Provisions in this Extension are amended by adding the following to the Special Provisions – Limitations on Amount Payable: i. If, following a claim for Damage, it is reasonably established that the cost of Reinstatement exceeds the Sum Insured of the Damaged property, the Insurers may discharge their liability under this Extension by paying the relevant Sum Insured, less any applicable Deductible. 16 DUAL New Zealand Material Damage and Business Interruption Wording 04.22 Indemnity Value (IV) For property specified as Buildings and Other Property under Section 1 of the Schedule designated as Indemnity Value (IV), the basis of settlement will be the Indemnity Value. Special provisions 1. Compliance with Regulations The amount payable under this Extension will include the cost incurred in Reinstatement that is necessary to comply with any Regulations provided that the amount payable will not include any such cost: a. to the extent to which the work had already been required of the Insured by notice served prior to the happening of the Damage; or b. in respect of Undamaged property or Undamaged portions of property other than foundations (unless foundations are expressly excluded from insurance under this Section of the Policy). Special Provision b) will apply whether or not the Undamaged property or portion comprises a separate Building or structure or a separate item of plant or equipment. 2. Seismic Strengthening Notwithstanding anything in the Policy to the contrary, the amount payable under this Reinstatement of Property Extension or otherwise under the Policy in respect of a Building that is Damaged but not Destroyed shall not include any cost incurred in connection with the seismic strengthening of the Building to a level greater than it was immediately prior to the occurrence of the Damage. For the avoidance of doubt, the Insured shall bear any costs incurred or necessary to comply with any seismic strengthening requirements of the Building Code or similar Regulation, which results in an increase in the seismic strength or resistance of the Building to a level greater than it was immediately prior to the occurrence of the Damage. However this provision does not apply if the Building has been earthquake strengthened to 100% of the 1976 NZS 4203 Building Code. All other provisions in the Policy concerning Reinstatement and the basis of settlement continue to apply. 3. Site of Reinstatement Where property is Destroyed, the work of Reinstatement must be carried out on the same Site. The work may be carried out upon any other Site: a. where Reinstatement on the same Site is not permissible by reason of any Regulations; or b. where Reinstatement on the same Site is not suitable to the Insured’s reasonable requirement. 4. Limitations on Amount Payable a. Where the work of Reinstatement is carried out in terms of Definition b)(ii) or b)(iii). of “Equivalent Building”, or on any location other than the original location, the Insurers’ liability in respect of the cost of Reinstatement will not exceed the cost that would have been incurred had Reinstatement been carried out in terms of Definition b)(i) on the original location. b. Where the Insured Property is Damaged but not Destroyed, the Insurers’ liability will not exceed the amount the Insurers could have been called upon to pay for Reinstatement if the property had been Destroyed. c. The Insurers’ liability under this Extension in respect of any item of Insured Property will not exceed the Sum Insured in respect of that item. 17 DUAL New Zealand Material Damage and Business Interruption Wording 04.22 5. Circumstances Where This Extension Does Not Apply No payment, beyond the amount that would have been payable had this Extension not been incorporated in the Policy, will be made: a. if the Insured elects not to Reinstate the Insured Property; b. if the work of Reinstatement is not commenced and carried out with reasonable despatch; c. until the cost of Reinstatement has been actually incurred; d. where a Building or structure is Damaged, but not Destroyed, and the repair of the Damage is not permissible by reason of any Regulations, or by reason of the condition of the Undamaged portion of the property. Where, by reason of any of these circumstances, no payment is to be made beyond the amount that would have been payable if this Extension had not been incorporated in the Policy, the rights and liabilities of the Insured and the Insurers in respect of the Damage will be the same as if this Extension had not been incorporated in the Policy. 6. Rates, Tax and Other Charges The amount payable under this Extension will not include the amount of any rate, tax, duty, development charge, or any other charge or assessment arising out of capital appreciation, that may be payable in respect of the Insured Property by reason of compliance with any Regulations. 7. Laptop Computers and Video Data Projectors – Age limitation No payment, beyond the amount that would have been payable had this Extension not been incorporated in the Policy, will be made for any: a. laptop computer; or b. video data project, if the unit was purchased as a new unit more than 2 years before the Damage occurred. 24. Rewards The cost of any reward paid by the Insured for the purpose of protecting or recovering any of the Insured Property. However: a. no payment will be made unless it contributes to the protection or recovery of the property; b. the terms of the reward are to be agreed by the Insurers prior to the reward being offered. The Insurers will not unreasonably refuse its agreement to the terms of a reward payable under this Extension. 25. Social Club Property The property of any pension fund, social club, sports club, or similar entity, whose activities are principally for the benefit of the Insured’s employees, as if it were owned by the Insured. 26. Subsidence Notwithstanding Exclusion 9 in Section 1, Damage to Insured Property caused by the sudden and unforeseen subsidence of land beneath or adjacent to a Building. However, this Extension does not apply to Damage consequent upon normal settling, shrinkage, or expansion of any building or its foundations. The Insurers’ liability under this Extension for each Event will not exceed the Sum Insured specified in the Schedule for Subsidence. The amount to be deducted from the claim will be the Deductible specified in the Schedule or $10,000, whichever is the greater. 18 DUAL New Zealand Material Damage and Business Interruption Wording 04.22 27. Sustainable Building Costs This Policy extends to cover reasonable additional costs incurred to upgrade Buildings(s) with Sustainable Products, provided that: 1. the Building(s) is Destroyed (as defined in the Reinstatement of Property Extension); and 2. the Reinstatement of Property Extension applies to the Building(s); and 3. the Building(s) are reinstated; and the Insurers’ approve the Sustainable Products, approval of which will not be unreasonably withheld. The Insurers’ liability under this Extension is subject to the Sum Insured and Deductible specified in the Schedule in respect of any one Event and in any one Period of Insurance. For the purpose of this Extension ‘Sustainable Products’ means: 1. products that increase the efficiency of the Building relating to the use of energy and/or water; and 2. rebuilding materials that reduce environmental impacts. 28. Temporary Removal Damage to Insured Property (other than Stock) while temporarily removed from the Premises to a different location anywhere in the Territory, including while in transit to and from that location (but not international transit). The Insurers’ liability under this Extension will not exceed the amount for which the Insurers would have been liable had the Damage occurred at the Insured Property’s original location. This Extension does not apply to Damage that would be recoverable under this insurance in the absence of this Extension. 29. Theft Notwithstanding Exclusion 18, in Section 1, Damage to Insured Property caused by theft. The Insurers’ liability, in respect of any one Event of Damage to Insured Property, is limited to the Sum Insured and Deductible specified in the Schedule for Theft. 30. Transit (Limited Cover) Notwithstanding General Exclusion 18, Damage to Insured Property while in transit within the Territory, including transit between ports of the same country but not international transit, but only where the Damage is caused by fire, flood, or storm, or the collision, overturning, sinking or wrecking of the conveyance in which the Insured Property is being carried. The Insurers’ liability under this Extension is subject to the Sum Insured specified in the Schedule for Transit (Limited Cover). 31. Transit (Full Cover) Notwithstanding General Exclusion 18, Damage to Insured Property while in transit within the Territory, including transit between ports of the same country but not international transit. The Insurers’ liability under this Extension is subject to the Sum Insured specified in the Schedule for Transit (Full Cover). 32. Unharmed Property If, for the sole purpose of reinstating Damaged Insured Property, it is necessary to demolish, damage or remove any property or part unharmed by that peril, the Insurers will indemnify the Insured for the cost of doing so. The Insurers will also indemnify the Insured for the cost of reinstating the property or part to a condition the same as, but not better nor more extensive than, its condition immediately prior to the demolition, damage or removal. 19 DUAL New Zealand Material Damage and Business Interruption Wording 04.22 33. Unlawful Substances a. Notwithstanding Exclusion 14 in Section 1, Accidental Methamphetamine contamination of Insured Property that happens and is discovered during the Period of Insurance and is caused by the manufacture, storage or distribution of Methamphetamine. b. Where any Methamphetamine contamination existed or occurred prior to the Period of Insurance there is no cover under this Extension unless the existence of the pre-existing contamination was disclosed to the Insurers’ and accepted by the Insurers’ in writing. However, if the Methamphetamine contamination existed or occurred during a previous Period of Insurance with the Insurers and the Insured Property has been insured with the Insurers continuously since then, the Insurers will waive the requirement for the Methamphetamine contamination to have first occurred in the Period of Insurance. c. The indemnity provided by this Extension will only apply when the level of Methamphetamine contamination exceeds the guideline level for acceptable indoor surface residues contained in the NZ Standard NZS8510 at the time the claim is notified to the Insurers’. d. This Extension will only cover the cost of decontamination to the extent required to reduce the level of Methamphetamine to below the guideline level for acceptable indoor surface residues contained in the NZ Standard NZS 8510. This means that the Insurers will not pay to remove all traces of methamphetamine contamination and will not restore the Insured Property to its condition when it was new. e. The Insurers’ liability in total during the Period of Insurance, is limited to the Sum Insured specified in the Schedule for Unlawful Substances. f. However, for Methamphetamine contamination resulting in fire or explosion, the Insurers’ liability will not exceed the Sum Insured specified in the Schedule for the Item of Insured Property. g. A Deductible of $2500 per unit (or the Deductible specified in the Schedule if it is higher) will apply to claims under this Extension. h. Where the Methamphetamine contamination occurs to the Insured Property or any part of the Insured Property in connection with a single tenancy, lease or occupancy of more than 90 days, the cover in this Extension is extended to include Accidental Methamphetamine contamination that is caused by the consumption of Methamphetamine unless: i. the Landlord Obligations have not been complied with; ii. the Methamphetamine contamination is caused by or in connection with the Insured or their family, or a unit proprietor or their family. For the purposes of this Exclusion, the Insured includes any trustee or beneficiary of the trust if the Insured Property or residential unit is owned by a trust, or any director or shareholder of the company if the Insured Property or residential unit is owned by a company. i. Where Methamphetamine contamination is covered by this Extension it is deemed to be Damage covered by the Policy. Definitions: ‘Methamphetamine’ means the Class A controlled drug Methamphetamine or Class B controlled drug Amphetamine as defined under the Misuse of Drugs Act 1975 or any precursor chemicals or by-products for either. ‘Landlords Obligations’ means: Where any part of the Building is a residential property the Insured or person responsible for managing the residential property must: 1. exercise reasonable care in the selection of tenant(s) by obtaining at least satisfactory verbal or written references; and 2. inspect vacant residential property or units on a monthly basis; and 3. keep written records of the pre-tenancy checks conducted for each adult tenant, and provide to a copy of these to the Insurers’ if requested; and 20 DUAL New Zealand Material Damage and Business Interruption Wording 04.22 4. complete an internal and external inspection of the residential parts of the Building at a minimum of 3-monthly intervals and upon every change of tenants; and 5. keep photographs and a written record of the outcome of each inspection, and provide a copy of these to the Insurers’ if requested; and 6. make application to the Tenancy Tribunal for vacant possession in accordance with the provisions of the Residential Tenancies Act 1986, if: a. you become aware of any illegal activity by the occupant(s) at the residential unit; or b. intentional damage to the residential unit is caused by one of its occupant(s). Where the Building includes non-residential property the Insured or person responsible for managing the Building must: 7. exercise reasonable care in the selection of tenant(s); and 8. complete an external and internal inspection of the property at a minimum of six monthly intervals and upon the change of every tenant(s); and 9. keep a written record of the outcome of each inspection and provide a copy of these to the Insurers’ if requested. 21 DUAL New Zealand Material Damage and Business Interruption Wording 04.22 Section 2 – Business Interruption If, during the Period of Insurance, any property or part used or to be used by or for the Insured at the Premises for the purpose of the Business is Damaged, caused by: a. such perils as are covered under Section 1 of this Policy; or b. the explosion of any boiler or economiser or pipe or other vessel under fluid pressure; and the Business carried on by the Insured at the Premises is consequently interrupted or interfered with; the Insurers will pay to the Insured in respect of each Item of Insured Interest the amount of financial loss resulting from the interruption or interference in accordance with the provisions of this Section. However, the Insurers will only pay for financial loss in consequence of: a. Damage to Insured Property, if that Damage is covered (or would be but for the Deductible) under Section 1 of this Policy; and b. Damage to any boiler or economiser or pipe or other vessel under fluid pressure that forms part of the Insured Property; and c. Damage to any other property, if that Damage would have been covered under Section 1 of this Policy if the Insured had owned it. The most the Insurers will pay in the aggregate under this Section 2 during the Period of Insurance is the Sum Insured stated in the Schedule for each Item of Insured Interested specified. Interests Insured Under Section 2 These Items shall only apply if specified with a Sum Insured in the Schedule to this Policy: ITEM A: Loss of Gross Profit This insurance covers loss of Gross Profit due to (a) reduction in Turnover and (b) increase in cost of working and the amount payable as indemnity will be: 1. In Respect of Reduction in Turnover the sum produced by applying the Rate of Gross Profit to the amount by which the Turnover during the Indemnity Period falls short of the Standard Turnover in consequence of Damage. 2. In Respect of Increase in Cost of Working costs necessarily and reasonably incurred for the sole purpose of avoiding or diminishing the reduction in Turnover that would otherwise have occurred during the Indemnity Period in consequence of Damage, but not exceeding the sum produced by applying the Rate of Gross Profit to the amount of the reduction thereby avoided; less any sum saved during the Indemnity Period in respect of such costs of the Business payable out of Gross Profit as may cease or be reduced in consequence of Damage. Definitions applicable to Item A. Loss of Gross Profit Gross Profit: The amount by which the sum of the Turnover and closing Stock exceeds the sum of opening Stock and Uninsured Working Costs. The amount of the opening and closing Stocks is to be arrived at in accordance with the Insured’s normal accountancy methods. Uninsured Working Costs: All costs deducted by the Insured from Turnover in arriving at the sum to be insured on Gross Profit. 22 DUAL New Zealand Material Damage and Business Interruption Wording 04.22 Turnover: The money paid or payable to the Insured for goods sold and delivered and for services rendered in the course of the Business at the Premises. For the avoidance of doubt, rent paid or payable to the Insured is deemed to be money paid or payable to the Insured for service in the course of the Business. Rate of Gross Profit: The rate of Gross Profit earned on the Turnover during the financial year immediately before the date of the Damage to which such adjustments will be made as may be necessary to provide for the trend of the Business and for variations in or other circumstances affecting the Business either before or after the Damage or that would have affected the Business had the Damage not occurred so that the figures thus adjusted represent as nearly as reasonably practicable the results that, but for the Damage, would have been obtained during the relative period after the Damage. Standard Turnover: The Turnover during that period in the twelve months immediately before the date of the Damage that corresponds with the Indemnity Period. Where the Damage has occurred before completion of the first year’s trading of the Business, the words ‘during the financial year immediately before the date of the Damage’ are deemed to read ‘during the period between the date of the commencement of the Business and the date of the Damage’. Where Damage occurs before sufficient Gross Profit or Turnover has been realised for the above definitions to produce an equitable result, the Rate of Gross Profit will be the rate of Gross Profit that would have been earned and the Standard Turnover will be the Turnover that would have been realised during the Indemnity Period had no Damage occurred. Provisions (Gross Profit) applicable to Item A. Gross Profit a. Alternative Trading If, during the Indemnity Period, goods are sold or services are rendered elsewhere than at the Premises for the benefit of the Business, either by the Insured or by others on behalf of the Insured, the money paid or payable in respect of those sales or services will be brought into account in arriving at the Turnover during the Indemnity Period. b. Departments If the Business is conducted in departments or other units, the independent trading results of which are ascertainable, the provisions of Gross Profit clauses a) and b) will apply separately to each department or other unit affected by the Damage. c. Reduced Margin If, in consequence of Damage giving rise to a claim on this insurance, Turnover is maintained at a reduced Rate of Gross Profit, an equitable allowance will be made for the loss of Gross Profit resulting from an increase in the ratio of Stock usage or purchases (adjusted for Stock variation) to Turnover. No allowance will be made for an increase in the ratio of any other uninsured cost to Turnover. d. Uninsured Fixed Costs If any fixed costs of the Business are not insured by this Policy (having been deducted in arriving at the Gross Profit), then, in computing the amount payable as increase in cost of working, that proportion only of any additional cost will be brought into account that the Gross Profit bears to the sum of the Gross Profit and those uninsured fixed costs. ITEM B: Loss of Revenue This insurance covers loss of Gross Revenue and increase in cost of working and the amount payable as indemnity will be: a. In Respect of Loss of Gross Revenue the amount by which the loss of Gross Revenue during the Indemnity Period falls short, in consequence of Damage, or the loss of Gross Revenue that would have been earned during that period had no Damage occurred; 23 DUAL New Zealand Material Damage and Business Interruption Wording 04.22 b. In Respect of Increase in Cost of Working any additional cost incurred for the sole purpose of avoiding or diminishing the loss of Gross Revenue that would have taken place during the Indemnity Period in consequence of Damage had the cost not been incurred, but not exceeding the amount by which the loss of Gross Revenue is thereby avoided or diminished; less any sum saved during the Indemnity Period in respect of such costs of the Business payable out of Gross Revenue as may cease or be reduced in consequence of Damage. Definitions applicable to Item B. Loss of Gross Revenue ‘Gross Revenue’ means the money paid or payable to the Insured for services rendered in the course of the Business at the Premises, including any money paid or payable by tenants to others for rates, insurance and other fixed costs that would otherwise be payable by the Insured. ‘Rate of Gross Revenue’ means the rate of Gross Revenue earned during the financial year immediately before the date of the Damage to which such adjustments will be made as may be necessary to provide for the trend of the Business and for variations in or other circumstances affecting the Business either before or after the Damage or that would have affected the Business had the Damage not occurred so that the figures thus adjusted represent as nearly as reasonably practicable the results that, but for the Damage, would have been obtained during the relative period after the Damage. ‘Standard Gross Revenue’ means the anticipated total amount of Revenue due to the Insured at the commencement of the Period of Insurance which amount shall be adjusted as necessary to take account of any circumstances affecting the Business such that the amount so adjusted represents as nearly as may be reasonably practicable the results that would have been obtained had the Business not been interrupted or interfered with. Where the Damage has occurred before completion of the first year’s trading of the Business, the words ‘during the financial year immediately before the date of the Damage’ are deemed to read ‘during the period between the date of the commencement of the Business and the date of the Damage’. Where Damage occurs before sufficient Revenue has been realised for the above definitions to produce an equitable result, the rate of Gross Revenue will be the Rate of Gross Revenue that would have been earned and the Standard Gross Revenue will be the Gross Revenue that would have been realised during the Indemnity Period had no Damage occurred. Alternative Services If, during the Indemnity Period, services are rendered elsewhere than at the Premises for the benefit of the Business, either by the Insured or by others on behalf of the Insured, the money paid or payable in respect of those services will be brought into account in arriving at the loss of Gross Revenue during the Indemnity Period. ITEM C: Loss of Rental Income This insurance covers loss of Rental Income and increase in cost of working and the amount payable as indemnity will be: a. In Respect of Rental Income the amount by which the Rental Income during the Indemnity Period falls short, in consequence of Damage, of the Rental Income that would have been earned during that period had no Damage occurred; b. In Respect of Increase in Cost of Working any additional cost incurred for the sole purpose of avoiding or diminishing the loss of Rental Income that would have taken place during the Indemnity Period in consequence of Damage had the cost not been incurred, but not exceeding the amount by which the loss of Rental Income is thereby avoided or diminished; less any sum saved during the Indemnity Period in respect of such costs of the Business payable out of Rental Income as may cease or be reduced in consequence of Damage. 24 DUAL New Zealand Material Damage and Business Interruption Wording 04.22 Definitions applicable to Item C. Loss of Rental Income ‘Rental Income’ means the money paid or payable to the Insured for services rendered in the course of the Business at the Premises, including any money paid or payable by tenants to others for rates, insurance and other fixed costs that would otherwise be payable by the Insured. ‘Rate of Gross Rental Income’ means the rate of Gross Rental Income earned during the financial year immediately before the date of the Damage to which such adjustments will be made as may be necessary to provide for the trend of the Business and for variations in or other circumstances affecting the Business either before or after the Damage or that would have affected the Business had the Damage not occurred so that the figures thus adjusted represent as nearly as reasonably practicable the results that, but for the Damage, would have been obtained during the relative period after the Damage. ‘Standard Gross Rental Income’ means the anticipated total amount of Rental Income due to the Insured at the commencement of the Period of Insurance which amount shall be adjusted as necessary to take account of any circumstances affecting the Business such that the amount so adjusted represents as nearly as may be reasonably practicable the results that would have been obtained had the Business not been interrupted or interfered with. Where the Damage has occurred before completion of the first year’s trading of the Business, the words ‘during the financial year immediately before the date of the Damage’ are deemed to read ‘during the period between the date of the commencement of the Business and the date of the Damage’. Where Damage occurs before sufficient Rental Income has been realised for the above definitions to produce an equitable result, the Rate of Gross Rental Income will be the rate of Gross Rental Income that would have been earned and the Standard Gross Rental Income will be the Gross Rental Income that would have been realised during the Indemnity Period had no Damage occurred. Alternative Services If, during the Indemnity Period, services are rendered elsewhere than at the Premises for the benefit of the Business, either by the Insured or by others on behalf of the Insured, the money paid or payable in respect of those services will be brought into account in arriving at the loss of Rental Income during the Indemnity Period. ITEM D: Wages (Dual Basis) This insurance covers financial loss in respect of Wages due to a) reduction in Turnover and b) increase in cost of working and the amount payable as indemnity will be: a. In Respect of Reduction in Turnover i. during the portion of the Indemnity Period beginning with the occurrence of the Damage and continuing for not more than the Initial Period stated in the Schedule, the sum produced by applying the Rate of Wages to the Shortage in Turnover during that portion of the Indemnity Period less any saving, during that portion of the Indemnity Period, through reduction in consequence of the Damage in the amount of Wages paid; ii. during the remaining portion of the Indemnity Period, the sum produced by applying the Rate of Wages to the Shortage in Turnover during that remaining portion of the Indemnity Period less any saving during that remaining portion of the Indemnity Period through reduction, in consequence of the Damage, in the amount of Wages paid; but not exceeding the sum produced by applying the percentage, stated in the Schedule, of the Rate of Wages to the Shortage in Turnover during that remaining portion of the Indemnity Period, increased by such amount as is deducted for savings under the terms of Clause 1)a)(i). 25 DUAL New Zealand Material Damage and Business Interruption Wording 04.22 NOTE: At the option of the Insured, the number of weeks referred to in Clause a)(i) above may be increased to the consolidated number of weeks stated in the Schedule, provided that the amount arrived at under the provisions of Clause a)(ii) will not exceed such amount as is deducted under Clause a)(i) for savings affected during the increased number of weeks. a. In Respect of Increase in Cost of Working So much of the additional expenditure described in Clause (b) of the Loss of Gross Profit Item as exceeds the amount payable under that Item but not more than the additional amount that would have been payable in respect of Shortage in Turnover under the provision of Clauses a)(i)-(ii) of this item had such expenditure not been incurred. Definitions applicable to Specification D. Wages (Dual Basis) ‘Wages’: The remuneration (including all payments pertaining to wages, such as accident compensation levies, bonuses, holiday pay, superannuation contributions and the like) of all employees other than those where remuneration is treated as salaries in the Insured’s accounting records. ‘Rate of Wages’: The rate of Wages to Turnover during the financial year immediately before the date of the Damage, to which such adjustments will be made as may be necessary to provide for the trend of the Business and for variations in or other circumstances affecting the Business, either before or after the Damage or that would have affected the Business had the Damage not occurred, so that the figures thus adjusted will represent as nearly as reasonably practicable the results that, but for the Damage, would have been obtained during the relative period after the Damage. ‘Shortage in Turnover’: The amount by which the Turnover during a period, in consequence of the Damage, falls short of the part of the Standard Turnover that relates to that period. Where the Damage has occurred before completion of the first year’s trading of the Business, the words ‘during the financial year immediately before the date of the Damage’ are deemed to read ‘during the period between the date of the commencement of the Business and the date of the Damage’. Where Damage occurs before sufficient Wages have been paid for the above definition to produce an equitable result, the Rate of Wages will be the Rate of Wages that would have applied during the Indemnity Period had no Damage occurred. ‘Turnover’: The money paid or payable to the Insured for goods sold and delivered and for services rendered in the course of the Business at the Premises. For the avoidance of doubt, rent paid or payable to the Insured is deemed to be money paid or payable to the Insured for service in the course of the Business. ITEM E: Wages – Limited Period Basis The Insurance under this Item on the Schedule is limited to the financial loss incurred by the Insured by the payment of Wages for a period beginning with the occurrence of the Damage and ending not later than the number of weeks thereafter described in the Schedule as the Limited Period. The amount payable as indemnity under this Item shall be the actual amount which the Insured shall pay as Wages for such period to employees whose services cannot in consequence of the Damage be utilised by the Insured at all and an equitable part of the Wages paid for such period to employees whose services cannot in consequence of the Damage be utilised by the Insured to the full. Provided that: if the Sum Insured by this Item shall be less than the aggregate amount of the Wages that would have been paid during the number of weeks described in the Schedule as the Limited Period immediately following the Damage had the Damage not occurred, the amount payable shall be proportionately reduced. 26 DUAL New Zealand Material Damage and Business Interruption Wording 04.22 Definitions applicable to Specification E. Wages (Limited Period Basis) For the purpose of this Item ‘Wages’: means the remuneration (including National Insurance Contributions, Payments pertaining to Wages, Bonuses, Holiday Pay and the like) of all employees other than those whose remuneration is insured as part of a different Item of the Schedule. ‘Limited Period’: means the payment of Wages for a period beginning with the occurrence of the Damage and ending not later than the number of weeks as stated in the Schedule ‘Adjustment of Premium’: means in the event of the Sum Insured under this Item being greater than the amount arrived at by, taking that proportion of the Wages paid by the Insured during the accounting period most nearly concurrent with any period of Insurance which the Limited Period specified in the Schedule bears to 52 weeks, a pro rata return of premium not exceeding 50 per cent. of the premium paid on such Sum Insured for such period of Insurance will be made in respect of the difference. Provided that: if any Damage shall have occurred giving rise to a claim under this Item, no such return of premium shall be made. ITEM F: Professional and Other Fees This insurance covers the actual costs incurred by the Insured, of reasonable fees payable to the Insured’s accountants, auditors, or other professionals and the cost of using the Insured’s employees, for producing and certifying any particulars or details contained in the Insured’s books or documents, or such other proofs, information or evidence required by the Insurers resulting from an insured loss payable under this Policy for which the Insurers have accepted liability. ITEM G: Additional Costs This insurance covers additional costs reasonably incurred by the Insured in consequence of the Damage for the purpose of resuming or maintaining any normal operation or service of the Business during the Indemnity Period, but excluding costs: a. to the extent the costs are otherwise recoverable under this Section of the Policy; or b. incurred in the reinstatement of physically Damaged property other than those incurred in the reconstitution of records. ITEM H: Book Debts This insurance covers financial loss sustained by the Insured in respect of outstanding debit balances that remain outstanding directly due to Damage and the amount payable will be: a. the difference between the outstanding debit balance and the total of the amounts received or traced in respect of that balance; and b. the additional cost incurred with the Insurers’ prior consent in tracing and establishing customer’s debit balances after the Damage. 27 DUAL New Zealand Material Damage and Business Interruption Wording 04.22 Extensions to Section 2 In the event of any conflict or inconsistency between this Section of the Policy and any Extensions incorporated in this Section, the terms of the Extension will prevail. In the event of any conflict or inconsistency between Extensions, the Extension most favourable to the Insured will prevail. Unless stated otherwise all Extensions below are included in the Sum Insured on the Insured Item and not in addition. This insurance extends to cover: 1. Advance Interruption For the purpose of claims arising from Damage to property in the course of construction, erection, alteration, installation or testing (and the materials, components and works pertaining to any of them), the Indemnity Period will begin on the date that the property would, but for the Damage, have been put in to use for the purpose of the Business, and not as otherwise stated. The insurance by this Extension shall only apply if such work is covered under Extension 5 of Section 1 of this Policy. 2. Customers and Suppliers Financial loss consequent upon Damage to any property whatsoever at the premises of direct suppliers or direct customers anywhere in New Zealand, or at any port installation, railway premises or airport in New Zealand, as if it were financial loss resulting from Damage to property used by the Insured at the Premises. In respect of financial loss resulting from Damage described above, the Indemnity Period will commence 48 hours after the financial loss to which this insurance applies has commenced in consequence of the Damage and not as otherwise stated. The Insurers’ liability under this Extension is limited to 10% of the Sum Insured for Gross Profit, Revenue, Wages, Claim Preparation Costs, Additional Costs and Book Debts to the extent any of these Items apply. This Extension does not apply to financial loss that would fall within the scope of this insurance in the absence of the Extension. 3. Indemnity Period Deferment The Insured may elect to defer the start of the Indemnity Period after Damage occurs subject to: a. the Insured notifying the Insurers within 90 days, in writing or by electronic means, of the Damage occurring of the intention to defer the commencement of the Indemnity Period; and b. the deferred Indemnity Period must start: i. no later than the number of months specified in the Schedule as the ‘Indemnity Period’; or ii. within 12 months of the date the Damage occurred, whichever is the earlier, otherwise this option to defer the Indemnity Period expires. c. the Indemnity Period cannot be deferred if the Insurers have already paid a claim under any ‘Insured Item’ of Section 2 of this Policy (other than for Rewriting of Records or Claims Preparation Costs covered under Section 1 of this Policy) resulting from that Damage. Should the Insured elect to defer commencement of the Indemnity Period as described above, then: a. The Insured must notify the Insurers of the actual date on which the Insured elects the Indemnity Period to start as soon as possible, but no later than 30 days, in writing or by electronic means, after that actual date; and 28 DUAL New Zealand Material Damage and Business Interruption Wording 04.22 b. When calculating the Insured’s claim under all ‘Insured Items’, the Insurers will make allowance for adjustments that are necessary to provide for: i. the trend of the Insured’s Business operations; and ii. variations in the Insured’s Business operations; and c. Other circumstances affecting the Insured’s Business operations that: i. occur before or after the start of the Indemnity Period; or ii. would have affected the Insured’s Business operations had the Damage not occurred, so that the final adjusted figures should represent, as close as is reasonably practicable, the results that would have been achieved during the Indemnity Period but for the Damage. 4. Murder or Suicide Financial loss consequent upon any of the following as if it were loss consequent upon Damage to property used by the Insured at the Premises, while access to the Premises is specifically denied by order of a competent public authority: a. murder or suicide at the Premises; b. bodily injury or illness sustained by any guest arising from or traceable to foreign or injurious matter in food or drink on the Premises. ‘illness’ means Acute Poliomyelitis, Anthrax, Botulism, Chicken Pox, Dysentery, Hepatitis B, Hepatitis C, Hepatitis E, Legionellosis (Legionnaires Disease), Listeriose, Malaria, Measles, Mumps, Ophthalmia Neonatorum, Paratyphoid fever, Rabies, Rubella, Salmonella Typhi / Paratyphi, STEC, VTECen (E.coli), Tetanus, Tuberculosis, Typhoid Fever, Typhus abdominalis (Abdominal typhoid), Whooping Cough, Yellow Fever; or c. consequent upon defects in the drains and other sanitary arrangements at the Premises: For the purpose of insurance under this Extension, the Indemnity Period will commence 24 hours after commencement of the financial loss and not as otherwise stated. The Insurers’ liability under this Extension is limited to 10% of the Sum Insured for Gross Profit or $250,000, whichever is the lesser. 5. Prevention of Access Financial loss consequent upon Damage or threat of Accidental damage to any property from any cause of loss covered by this Policy within a one kilometre radius of the Premises that prevents or hinders the use of or access to the Premises will be deemed to be financial loss resulting from Damage to property used by the Insured at the Premises. For the purpose of any claim under this Extension, the Indemnity Period will commence 48 hours after the financial loss to which this insurance applies has commenced in consequence of the Accidental Damage, and not as otherwise stated. The Insurers’ liability under this Extension in respect of any one Event is limited to 10% of the Sum Insured for each specific Insured Item that applies. 6. Property in Transit For the purpose of this insurance: a. if the Insured’s Material Damage Policy covering property used by the Insured for the purpose of the Business includes cover on any of the Insured Property while it is in transit; and b. if, in consequence of Damage to that Insured Property in transit, the Business carried on by the Insured at the Premises is interrupted or interfered with. the Damage will be deemed to have occurred at the Premises. 29 DUAL New Zealand Material Damage and Business Interruption Wording 04.22 7. Public Authorities Financial loss if an order of a Public Authority prohibits or hinders the use of or access to the Premises consequent upon Accidental Damage from any cause of loss covered by this Policy to any property (whether the property is at the Premises or elsewhere within one kilometre of the Premises and whether or not the property is used or to be used by the Insured for the purpose of the Business) as if it were financial loss consequent upon Damage to property used by the Insured at the Premises. This Extension does not apply to financial loss that falls within the scope of any other Extensions incorporated in this Section of the Policy. The Insurers’ liability under this Extension in respect of any one Event is limited to 10% of the Sum Insured for each specific Insured Item that applies. 8. Utilities Financial loss consequent upon any of the following as if it were financial loss consequent upon Damage to Insured Property used by the Insured at the Premises: a. Accidental Damage to the property of any supplier of electricity, gas or water anywhere in New Zealand (other than works comprising the Maui or Kapuni gas installations) resulting in interruption to or interference with the supply of electricity, gas or water to the Premises; or b. Accidental Damage to the property of any public authority in New Zealand resulting in interruption to or interference with the discharge of effluent from the Premises. For the purpose of any claim under this Extension, the Indemnity Period will commence 48 hours after the financial loss to which this insurance applies has commenced in consequence of the Accidental Damage, and not as otherwise stated. The Insurers’ liability under this Extension in respect of any one Event is limited to 10% of the Sum Insured for each specific Insured Item of Gross Profit, Revenue, Wages, Claim Preparation Costs, Additional Costs or Book Debts that applies. Conditions to Section 2 1. Accumulated Stocks In adjusting any financial loss, account will be taken, and an equitable allowance made, if any shortage in Turnover due to the Damage is postponed by reason of the Turnover being temporarily maintained from accumulated stocks of goods held by the Insured. 2. Adjustment of Premium The premium charged for this insurance is adjustable at the end of the Period of Insurance in accordance with the following conditions: a. Within six months after the end of the Period of Insurance, or as soon as practicable thereafter, the Insured must submit to the Insurers a Policy setting out the actual Gross Profit or Revenue (and, if separately insured, the actual Wages) in the accounting year most nearly concurrent with the Period of Insurance. b. The premium will be adjusted at the agreed rates on the amounts so certified. c. If any claim occurs during the period for which the premium is to be adjusted, the amount paid or payable for financial loss (other than financial loss payable under a non-adjustable item) occurring during that period will be regarded as actually earned. 30 DUAL New Zealand Material Damage and Business Interruption Wording 04.22 3. Alternative Index A claim on this insurance will be adjusted on the basis of Turnover or any other index of Business activity, whichever affords the more equitable result. Except in the definition of ‘Turnover’, the word ‘Turnover’ wherever used in this Policy is understood to mean ‘Turnover or Alternative Index’. 4. Claims Upon becoming aware of the happening of any even that may lead to a claim, the Insured must; a. forthwith give notice thereof in writing to the Insurers; b. use due diligence and do and concur in doing all things reasonably practicable to minimise any interruption of or interference with the Business and to avoid or diminish the financial loss; c. forthwith deliver to the Insurers a statement in writing of any claim certified by the Accountant, whose reasonable fee will be paid by the Insurers, with all particulars and details reasonably practicable of the financial loss; d. produce and furnish all books of account and other Business books, invoices, vouchers and other documents, proofs, information, explanations and other evidence and facilities as may reasonably be required for investigation and verification of the claim and, if required, a statutory declaration in verification of the particulars. The term ‘Accountant’ under this condition means an accountant or adjuster whose qualifications are acceptable to both the Insurers and the Insured and is appointed by both the Insurers and Insured. 5. Departments If the Business is conducted in departments or other units, the independent trading results of which are ascertainable, the provisions of clauses (a) and (b) of the Gross Profit Item (and, if separately insured, of the item on Wages) will apply separately to each department or other unit affected by the Damage. 6. Increased Costs – Joint Insureds Where, for the purpose of avoiding or diminishing a reduction in Turnover, goods or services are purchased from a party jointly insured under this Policy, the reasonable full price of such goods or services (less any discount normally allowed) will be taken into account for the purpose of adjusting a claim, as though the goods or services were purchased during the course of normal Business. 7. Progress Claim Payments Progress claim payments will be made to the Insured during the Indemnity Period if desired on production of a statement of claim certified by the Accountant appointed in accordance with the Claims conditions of this insurance. 8. Winding Up or Cessation of Interest This Section 2 will be void if, for any reason other than Damage: a. the Business is wound up or carried on by a liquidator or receiver or is permanently discontinued; or b. the Insured’s interest ceases otherwise than by death; at any time during the Period of Insurance, unless its continuance is agreed by the Insurers. 31 DUAL New Zealand Material Damage and Business Interruption Wording 04.22 General Conditions Applicable To Sections 1 and 2 1. Innocent Breach of Warranty or Condition This insurance will not be invalidated by breach of any warranty or condition where the breach occurs without the Insured’s knowledge, providing the Insurers are advised of the circumstances immediately they become known to the Insured. For the purpose of this condition, knowledge of the Insured is deemed to mean knowledge of the Insured’s Insurance Manager (or equivalent). 2. Acts of Parliament All references to Acts of Parliament in this Policy include their Regulations and any subsequent Act of Parliament that replaces or substitutes it. 3. Alteration of Risk If with the knowledge of the Insured the risk of Damage is increased by any change in the nature or occupancy of the Insured’s Premises or otherwise, the cover provided by this Policy will be forfeited as regards the affected Insured Property. unless notice is given to Insurers of such change, and Insurers agree, prior to an Event giving rise to a claim. Provided however, notice is not required to be given: i. of any changes in the use or occupancy as are usual and/or incidental to the Business of the Insured; ii. to carry out any alterations and/or repairs to any Insured Property, provided structural alterations are notified to the Insurers’ within a reasonable period. 4. Cancellation by the Insurers This Policy may be cancelled by the Insurers at any time by giving written notice to the Insured. The notice may be delivered personally, posted, or by electronic delivery, to the Insured’s last known postal, or electronic delivery address (or the address of their appointed Insurance Broker or Agent). The cancellation will take effect at 4pm on the 30th day after the notice has been delivered or posted. In the event of such cancellation, the Insurers will refund to the Insured a pro-rata proportion of the premium, subject to any adjustment required by the terms of this Policy. In the event of cancellation for non-payment of premium, the Policy is cancelled retrospectively to its beginning and no claims will be paid. 5. Cancellation by the Insured This Policy may be cancelled by the Insured at any time, and with immediate effect, by written notice delivered to the Insurers. In the event of such cancellation, the Insurers will be entitled to a pro-rata proportion of the premium (subject to any adjustment required by the terms of this Policy) for the time during which the Policy has been in force. 6. Deductible The amount payable for each Event of Damage will be adjusted separately. The adjusted amount will be net of salvage and other recoveries. From each adjusted amount, the Deductible specified in the Schedule will be deducted. Where more than one Deductible could apply to the same loss, only the highest of them will be deducted from the amount payable. Each Section of the Policy is subject separately to this Condition. 32 DUAL New Zealand Material Damage and Business Interruption Wording 04.22 7. Diligence and Compliance The Insured must make reasonable endeavours to ensure: i. that all fire protection and security devices in the Insured’s control at Premises where Insured Property is located are maintained in working condition at all times; ii. compliance with relevant government and local authority laws and regulations, including but not limited any law or regulation relating to the storage of dangerous goods and smoking in the workplace. 8. Disclaimers and Release of Liability This insurance will not be invalidated by reason of the Insured having released: a. any fire brigade or firefighting authority; b. any fire protection equipment supplier; c. any oil company; d. any government authority; from liability for Damage that is covered by this Policy. Further, this insurance will not be invalidated by reason of the Insured having agreed to a disclaimer clause in any contract entered into by the Insured for: a. the storage of goods; or b. the leasing of property; whether or not the disclaimer has been disclosed to the Insurers. 9. Fraud If any claim is in any respect fraudulent or if any false declaration is made or used in support of any claim, or if any fraudulent means or devices are used by the Insured or anyone acting on behalf of the Insured to obtain any benefit under this Policy in respect of the claim, all benefit under this Policy shall be forfeited. 10. Goods and Services Tax Where the Insured is liable to pay GST on receiving any indemnity payment under this Policy, the Insurers will reimburse the Insured for the cost of that tax. The reimbursement will be made in addition to the indemnity otherwise payable and will not be subject to any Sum Insured or other limit of the Insurers’ liability. For the purposes of this clause “GST” means tax payable under section 5 (13) of the Goods and Services Tax Act 1985, or under any statutory amendment to or re-enactment of the Section or Act. 11. Landlord Where the Insured is a landlord of a Building, the Insured must advise the tenants when they are required to comply with any applicable Policy Conditions or Warranties. 12. Mis-description This insurance will not be prejudiced by: a. any innocent alteration or inadvertent mis-description of property or occupancy; b. any act of the occupier whereby the risk of Damage to property not in the occupation of the Insured is increased without the authority or knowledge of the Insured; provided that notice is given to the Insurers immediately the Insured’s Insurance Manager (or equivalent) becomes aware of any of the above happenings. The Insured agrees to pay an appropriate additional premium if required. 33 DUAL New Zealand Material Damage and Business Interruption Wording 04.22 13. Mutually Acceptable Adjusters Where the Insurers wish to appoint any loss adjuster or assessor in respect of any claim on this insurance, the appointee must be mutually acceptable to the Insurers and the Insured. 14. Observance The due observance and fulfilment of the terms of this Policy in so far as they relate to anything to be done or complied with by the Insured, and the truth of statements made , are conditions precedent to any Insurers’ liability to provide indemnity under this Policy. 15. Other Insurance If, at the time of any claim arising under this insurance, there is any other valid and collectable insurance covering all or part of the same Damage or financial loss: 1. the amount payable under the other insurance will be determined as though this insurance did not exist; and 2. this insurance will only apply to any loss in excess of either; a. the amount payable under the other insurance; or b. the amount of any Deductible applicable to this insurance; whichever is the greater. 16. Recovery Apportionment If the Insurers, having exercised their right of subrogation, recover any part or all of a loss in respect of which a claim has been paid or is payable under this Policy, the amount so recovered will be apportioned as follows: a. The Insured will be fully reimbursed for the uninsured portion of the loss, excluding that portion of the loss uninsured by reason of a Deductible. b. Any remaining balance will be apportioned between the Insured and the Insurers in the ratio of their respective losses; the loss to the Insured being that portion of the loss that is uninsured by reason of any Deductible, and the loss to the Insurers being the amount of their actual payment under the Policy. The costs of all recovery proceedings will be apportioned in the ratio of respective recoveries. If no recovery is made, proceedings conducted solely by the Insurers will be at their own expense. Notwithstanding anything to the contrary in the Deductible clause of this Policy, no account is to be taken of subrogated recoveries in determining the amount of adjusted loss to which the Deductible applies. 17. Reinstatement of Sum Insured In the event of loss for which a claim is payable under this Policy, and in the absence of written notice by the Insurers or the Insured to the contrary, the amount of insurance reduced by the loss will be automatically reinstated but only when the lost or destroyed Insured Property has been replaced. Where Insured Property is Damaged, reinstatement of the amount of the insurance reduced by the loss will only occur as and when repairs have been completed, and only to the extent of the value of those completed repairs. The Insured undertakes to pay such pro rata premium at the rate applicable to the item or items of Insured Property concerned as may be required for the reinstatement. 18. Renewal Terms If the Insurers intend to refuse renewal of this Policy, or to offer renewal on any terms less favourable to the Insured than those applying during the current Period of Insurance, the Insurers will give the Insured notice of that intention. The notice must be received by the Insured not less than 30 days before the expiry of the current Period of Insurance. If the notice is not received by that time, the Insurers will, if so required by the Insured, extend the current Period of Insurance so that it will expire not less than 30 days after the notice is received by the Insured. The Insured undertakes to pay a pro rata proportion of the annual premium for the period of any such extension. 34 DUAL New Zealand Material Damage and Business Interruption Wording 04.22 19. Subrogation Where, upon accepting liability for a claim under this Policy, the Insurers are entitled to become subrogated to the Insured’s right of recovery or indemnity from any other person or corporation, the Insured must, at the Insurers’ expense, do and concur in doing and permit to be done anything reasonably required by the Insurers for the purpose of enforcing that right. The Insured must comply with this condition when required, whether before or after having been indemnified by the Insurers. 20. Vacancy Clause In the event that the Insured becomes aware that the Insured Property might become vacant or unoccupied and remain so for more than 60 (sixty) days the Insured shall notify the Insurers of such vacancy or unoccupancy. The Insurers may agree to continue with the insurance cover at amended terms and conditions, such amendment taking immediate effect. 21. Waiver of Recovery Rights Where the Insured is a parent or subsidiary in a group of related companies, this insurance will not be invalidated by reason of the Insured waiving or having waived any right of recovery it may have against any other company in the same group. ‘Subsidiary company’ means a company, more than half the nominal value of whose equity share capital is owned by a parent company either directly or through other subsidiaries; and a group of related companies means a group of companies related to one another by virtue of such ownership. This insurance will not be invalidated if the Insured, by agreement, waives right of recovery or indemnity from any party (other than a related company as provided for above in respect of financial loss or Damage insured by this Policy, provided that the waiver is made prior to the occurrence of financial loss or Damage. General Exclusions Applicable To Sections 1 and 2 1. Antiques, Curiosities and Art This insurance does not cover any one antique, curiosity or work of art whose value exceeds the amount specified in the Schedule. 2. Explosives This insurance does not cover explosives, being any material designed to explode with the object of causing Damage for commercial or military purposes. 3. LMA3100 Sanctions Limitation And Exclusion Clause No (re)insurer shall be deemed to provide cover and no (re)insurer shall be liable to pay any claim or provide any benefit hereunder to the extent that the provision of such cover, payment of such claim or provision of such benefit would expose that (re)insurer to any sanction, prohibition or restriction under United Nations resolution or the trade or economic sanctions, laws or regulation of the European Union, United Kingdom or United States of America. 4. Micro-organism Exclusion (Absolute) LMA 5018 This Policy does not insure any loss, Damage, claim, cost, expense or other sum directly or indirectly arising out of or relating to: mould, mildew, fungus, spores or other micro-organism of any type, nature, or description, including but not limited to any substance whose presence poses an actual or potential threat to human life. This Exclusion applies regardless whether there is: a. Damage to Insured Property; 35 DUAL New Zealand Material Damage and Business Interruption Wording 04.22 b. any insured peril or cause, whether or not contributing concurrently or in any sequence; c. any loss of use, occupancy, or functionality; or e. any action required, including but not limited to repair, replacement, removal, clean up, abatement, disposal, relocation, or steps taken to address medical or legal concerns. This Exclusion replaces and supersedes any provision in the Policy that provides insurance, in whole or in part, for these matters. 5. Money This insurance does not cover Money. 6. War and Civil War Exclusion Clause NMA 464 (Approved by Lloyd’s Insurers’ Non-Marine Association) Notwithstanding anything to the contrary contained herein this Policy does not cover loss, Damage, claim, cost, expense or other sum directly or indirectly occasioned by, happening through or in consequence of war, invasion, acts of foreign enemies, hostilities (whether war be declared or not), civil war, rebellion, revolution, insurrection, military or usurped power or confiscation or nationalisation or requisition or destruction of or Damage to property by or under the order of any government or public or local authority. 7. Communicable Disease Exclusion LMA 5393 1. Notwithstanding any other provision of this Policy to the contrary, this Policy does not insure any loss, Damage, claim, cost, expense or other sum, directly or indirectly arising out of, attributable to, or occurring concurrently or in any sequence with a Communicable Disease or the fear or threat (whether actual or perceived) of a Communicable Disease. 2. For the purposes of this endorsement, loss, Damage, claim, cost, expense or other sum, includes, but is not limited to, any cost to clean-up, detoxify, remove, monitor or test: 2.1. for a Communicable Disease; or 2.2. any property insured hereunder that is affected by such Communicable Disease. 3. As used herein, a Communicable Disease means any disease which can be transmitted by means of any substance or agent from any organism to another organism where: 3.1. the substance or agent includes, but is not limited to, a virus, bacterium, parasite or other organism or any variation thereof, whether deemed living or not; and 3.2. the method of transmission, whether direct or indirect, includes but is not limited to, airborne transmission, bodily fluid transmission, transmission from or to any surface or object, solid, liquid or gas or between organisms; and 3.3. the disease, substance or agent can cause or threaten damage to human health or human welfare or can cause or threaten Damage to, deterioration of, loss of value of, marketability of or loss of use of property insured hereunder. 4. This General Exclusion applies to all coverage Extensions, additional coverages, exceptions to any exclusion and other coverage grant(s). All other terms, conditions and exclusions of the Policy remain the same. 8. Electronic Date Recognition Exclusion (EDRE) NMA 2802 This Policy does not cover any loss, Damage, cost, claim or expense, whether preventative, remedial or otherwise, directly or indirectly arising out of or relating to: a. 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, by any computer system, hardware, programme or software and/or any microchip, integrated circuit or similar device in computer equipment or non-computer equipment, whether the property of the Insured or not; or 36 DUAL New Zealand Material Damage and Business Interruption Wording 04.22 b. any change, alteration, or modification involving the date change to the year 2000, or any other date change, including leap year calculations, to any such computer system, hardware, programme or software and/or any microchip, integrated circuit or similar device in computer equipment or non-computer equipment, whether the property of the insured or not. This clause applies regardless of any other cause or Event that contributes concurrently or in any sequence to the loss, Damage, cost, claim or expense. 9. Property Cyber and Data Exclusion LMA 5401 Notwithstanding any provision to the contrary within this Policy or any endorsement thereto this Policy excludes any: 1. Cyber Loss. 2. Loss, Damage, liability, claim, cost, expense of whatsoever nature directly or indirectly caused by, contributed to by, resulting from, arising out of or in connection with any loss of use, reduction in functionality, repair, replacement, restoration or reproduction of any Data, including any amount pertaining to the value of such Data; regardless of any other cause or Event contributing concurrently or in any other sequence thereto. 3. In the event any portion of this General Exclusion is found to be invalid or unenforceable, the remainder shall remain in full force and effect. 4. This General Exclusion supersedes and, if in conflict with any other wording in the Policy or any endorsement thereto having a bearing on Cyber Loss or Data, replaces that wording. Definitions 1. ‘Cyber Loss’ means any loss, Damage, liability, claim, cost or expense of whatsoever nature directly or indirectly caused by, contributed to by, resulting from, arising out of or in connection with any Cyber Act or Cyber Incident including, but not limited to, any action taken in controlling, preventing, suppressing or remediating any Cyber Act or Cyber Incident. 2. ‘Cyber Act’ means an unauthorised, malicious or criminal act or series of related unauthorised, malicious or criminal acts, regardless of time and place, or the threat or hoax thereof involving access to, processing of, use of or operation of any Computer System. 3. ‘Cyber Incident’ means: 1. any error or omission or series of related errors or omissions involving access to, processing of, use of or operation of any Computer System; or 2. any partial or total unavailability or failure or series of related partial or total unavailability or failures to access, process, use or operate any Computer System. 4. ‘Computer System’ means any computer, hardware, software, communications system, electronic device (including, but not limited to, smart phone, laptop, tablet, wearable device), server, cloud or microcontroller including any similar system or any configuration of the aforementioned and including any associated input, output, data storage device, networking equipment or back up facility, owned or operated by the Insured or any other party. 5. ‘Data’ means information, facts, concepts, code or any other information of any kind that is recorded or transmitted in a form to be used, accessed, processed, transmitted or stored by a Computer System. 10. Terrorism Exclusion NMA 2920 Notwithstanding any provision to the contrary within this Policy or any endorsement thereto it is agreed that this Policy excludes loss, Damage, 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. 37 DUAL New Zealand Material Damage and Business Interruption Wording 04.22 For the purpose of this Exclusion an ‘Act of Terrorism’ means an act, including but not limited to the use of force or violence and/or the threat thereof, of any person or group(s) of persons, whether acting alone or on behalf of or in connection with any organisation(s) or government(s), committed for political, religious, ideological or similar purposes including the intention to influence any government and/or to put the public, or any section of the public, in fear. This General Exclusion also excludes loss, Damage, 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. If the Insurers allege that by reason of this General Exclusion, any loss, Damage, cost or expense is not covered by this insurance the burden of proving the contrary shall be upon the Insured. In the event any portion of this General Exclusion is found to be invalid or unenforceable, the remainder shall remain in full force and effect. 11. Biological or Chemical Materials Exclusion NMA 2962 It is agreed that this Policy excludes loss, Damage, cost or expense of whatsoever nature directly or indirectly caused by, resulting from or in connection with the actual or threatened malicious use of pathogenic or poisonous biological or chemical materials regardless of any other cause or Event contributing concurrently or in any other sequence thereto. 12. Property not insured This insurance does not cover any of the following property unless it is specified in the Schedule: Any standing timber, growing crop, livestock, dam, canal, tunnel, bridge (other than a bridge on the Insured’s Premises), dock, pier, wharf, mining property located beneath the surface of the ground, or any land, including but not limited to topsoil and backfill. 13. Radioactive Contamination and Explosive Nuclear Assemblies LMA 1622 This insurance does not cover: a. loss or destruction of or Damage to any property whatsoever or any loss or expense whatsoever resulting or arising there from or any consequential loss, or b. any legal liability of whatsoever nature directly or indirectly caused by or contributed to by or arising from: 1. ionising radiations or contamination by radioactivity from any nuclear fuel or from any nuclear waste from the combustion of nuclear fuel. 2. the radioactive, toxic, explosive or other hazardous properties of any explosive nuclear assembly or nuclear component thereof. 14. Riot, Civil Commotion and Industrial Dispute This insurance does not cover loss, Damage, claim, cost, expense or other sum caused directly by: a. partial or total cessation of work; or b. delay, interruption or cessation of any process; consequent upon any riot, civil commotion or industrial dispute. 15. Settling, Shrinkage or Expansion This insurance does not cover the following types of Damage in any way: normal settling, normal shrinking or normal expansion of buildings, foundations, walls, pavements, roads, or any other structural improvement. However, this General Exclusion does not apply to resulting Damage to other Insured Property arising from this excluded Damage that are not otherwise excluded. 38 DUAL New Zealand Material Damage and Business Interruption Wording 04.22 16. Transit This Policy does not cover property in transit other than at Premises owned or occupied by the Insured. 17. Vehicles This Policy does not cover any kind of motor vehicle or trailer or their accessories while in or on either of them other than as Stock of the insured. However, this General Exclusion does not apply to any mobile plant used in and around the Insured’s Premises unless the plant is more specifically insured. 18. Watercraft and Aircraft This Policy does not cover any kind of watercraft or aircraft, or accessories while in or on any of them. However, this Exclusion does not apply to Stock. 19. Weather Conditions In respect of the Insured Property or part immediately affected this Policy does not cover Damage to Insured Property directly caused by 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. Endorsements The insurance provided by this Policy is endorsed as follows: Australian Locations In respect of any insured Property located in the Territory of the Commonwealth of Australia: a. Exclusions to Section 1 are extended to include: Flood Exclusion Australia In respect of Insured Property in Australia Damage by or happening through: • flood, which shall mean the inundation of normally dry land by water overflowing from the normal confines of any natural watercourse or lake (whether or not altered or modified), reservoir, canal or dam. • water from or action by the sea, tidal wave or high water. Provided that this Exclusion shall not apply to Damage that caused by or arises out of an earthquake or seismological disturbance. b. Extensions to Section 1 are extended to include: Australian Terrorism Insurance Act 2003 Notice NMA 2984 The Insurers have treated this Policy (or part of it) as an Insurance to which the Australia Terrorism Insurance Act 2003 (ATIA) applies. ATIA and the supporting regulations made under the Act deem cover into certain policies and provide that the Terrorism exclusion to which this Insurance is subject shall not apply to any “eligible terrorism losses” as defined in ATIA. Any coverage established by ATIA is only in respect of any “eligible terrorism loss” resulting from a “terrorist act” which is a “declared terrorist incident” as defined in ATIA. The Terrorism exclusion to which this Policy is subject applies in full force and effect to any other loss and any act or event that is not a “declared terrorist incident. 39 DUAL New Zealand Material Damage and Business Interruption Wording 04.22 All other terms, conditions, insured coverage and exclusions of this Insurance including applicable limits and deductibles remain unchanged. If any or all of the Insurers have reinsured this Policy with the Australian Reinsurance Pool Corporation, then any such Insurers will not be liable for any amounts for which they are not responsible under the terms of ATIA due to the application of a “reduction percentage” as defined in ATIA which results in a cap on the Insurers’ liability for payment for “eligible terrorism losses”. The Laws of New Zealand continue to govern this Policy and any disputes arising out of this Policy are still subject to the exclusive jurisdiction of the courts of New Zealand. Helping you do more New Zealand | +64 9 973 0190 dualinsurance.com DUAL New Zealand Limited | Registered in New Zealand under Company NumberDUAL 40 3232892 New Zealand Material Damage and Business Interruption Wording 04.22 --- ## Zurich New Zealand — Zurich Material Damage > _Markdown transcription of Zurich New Zealand Zurich Material Damage policy wording, effective 2026-01-01. Source: https://edge.sitecorecloud.io/zurichinsur0b40-zwpaustrali7d46-prod0760-b10c/media/project/zurich-headless/shared/content/dam/nz-documents/property-insurance/material-damage-business-interruption-insurance/marerial-damage-policy.pdf_ --- Zurich Material Damage Policy Wording Contents Welcome to Zurich About Zurich........................................................................................................................................................................................... 2 Duty of Disclosure. ............................................................................................................................................................................. 2 Non-disclosure or Misrepresentation.................................................................................................................................... 2 Our contract with you. ...................................................................................................................................................................... 2 Zurich Material Damage Policy Wording Definitions. ............................................................................................................................................................................................... 3 Cover. .......................................................................................................................................................................................................... 9 Additional Cover. ................................................................................................................................................................................. 10 Optional Additional Covers........................................................................................................................................................... 19 Exclusions. ............................................................................................................................................................................................... 21 Conditions................................................................................................................................................................................................ 25 ZU25059 - V1 01/26 - RMEA-023851-2026 Page 1 of 31 Welcome to Zurich About Zurich The insurer of this product is Zurich Australian Insurance Limited (ZAIL incorporated in Australia), ABN 13 000 296 640, trading as Zurich New Zealand. In this policy wording, Zurich New Zealand may also be expressed as ‘Zurich’, ‘we’, ‘us’ or ‘our’. ZAIL is part of the Zurich Insurance Group, a leading multi-line insurer that serves its customers in global and local markets. Zurich provides a wide range of general insurance and life insurance products and services in more than 210 countries and territories. Zurich’s customers include individuals, small businesses, mid-sized and large companies, including multinational corporations. Duty of Disclosure Before you enter into a contract of general insurance with us, you have a duty at common law to disclose to us every matter you know, or could reasonably be expected to know, that a prudent insurer would want to take into account in deciding whether to insure you and, if so, on what terms. This applies to all persons to be covered under this contract of insurance. You have the same duty to disclose those matters to us before you renew, extend, vary or reinstate a contract of general insurance. Your duty however, does not require disclosure of a matter that: • diminishes the risk to be insured; • is of common knowledge; • we know or in the ordinary course of our business we ought to know; • we indicate to you that we do not want to know. Non-disclosure or Misrepresentation If you make a material misrepresentation to us, or if you do not comply with your duty of disclosure we may treat your policy as if it never existed. Our contract with you Your policy is a contract of insurance between you and Zurich and contains all the details of the cover that we provide. Your policy is made up of: • the policy wording. This is common to all customers who buy our Zurich Material Damage Insurance product. It tells you what is covered, sets out the claims procedure, exclusions and other terms and conditions of cover; • the proposal, or declaration which is the information you provide to us when applying for insurance cover; • your most current schedule issued by us. The schedule is a separate document unique to you, which shows the insurance details relevant to you. It includes any changes, exclusions, terms and conditions made to suit your individual circumstances and may amend the policy; and • any other written change otherwise advised by us in writing (such as an endorsement). These written changes vary or modify the above documents. Please note, only those covers shown in your schedule are insured. This policy wording is used for any offer of renewal we may make, unless we tell you otherwise. Please keep your policy in a safe place. We reserve the right to change the terms of this policy wording where permitted to do so by law. Page 2 of 31 Zurich Material Damage Policy Wording In consideration of you having paid or agreeing to pay the premium, we agree to indemnify you in the manner and to the extent set out in this policy. Definitions Whenever these words appear in this policy, they have the following meanings: Accidental accidental means unexpected and unintended by you. Act of terrorism act of terrorism means an act including but not limited to the use or threat of force or violence 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 committed 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. Buildings buildings mean buildings, other structures, and their appurtenances including but not restricted to the plant, fixtures, fittings, pipes, cables, lights, aerials, signs and lettering, tanks, poles, power lines and their supports, underground and above ground services directly associated with the building, walls, gates, fences, landscaping, gardens, ornamental trees and shrubs, roads, paths, yards and the like pertaining to any of them and located in or about the situation. Provided that the building is: 1. owned by you (including joint ownership with others); and 2. located at the situation at the start of the period of insurance. Burglary Theft accompanied by violence or threat of violence to any person or violent and forcible entry to or exit from any enclosed building, enclosed yard, or vehicle. For the purpose of this Definition “enclosed yard” means a yard fully enclosed by a security fence of no less than two metres in height with security gates having a suitable locking device. Burglary also includes theft following the forcible removal of any fixture, fitting, structure and/or item permanently affixed to or forming part of any building. Business business means your business and undertakings as stated in the schedule. Business hours business hours mean the hours that: 1. you or any director/principal or manager of yours; or 2. any employee entrusted with the care, custody or control of money, are on the premises for the purpose of your business. Common site A common physical location where the property is linked to achieve a common business purpose at that location. Communicable disease communicable disease means any disease which can be transmitted by means of any substance or agent from any organism to another organism where: 1. the substance or agent includes, but is not limited to, a virus, bacterium, parasite or other organism or any variation thereof, whether deemed living or not; and Page 3 of 31 2. the method of transmission, whether direct or indirect, includes but is not limited to, airborne transmission, bodily fluid transmission, transmission from or to any surface or object, solid, liquid or gas or between organisms; and 3. the disease, substance or agent can cause or threaten damage to human health or human welfare or can cause or threaten damage to, deterioration of, loss of value of, marketability of or loss of use of insured property. Computer system Computer system means interconnected electronic, wireless, web or similar systems, including computer hardware, software and the electronic data stored thereon, as well as associated input and output devices, mobile devices (including, but not limited to, smart phone, laptop, tablet, wearable device), electronic data storage devices, servers, cloud or microcontroller including any similar system media libraries, networking equipment, components, firmware and electronic backup facilities, including systems accessible through the internet, intranets, extranets or virtual private networks., owned or operated by you or any other party. Computer virus computer virus means a set of corrupting, harmful or otherwise unauthorised instructions or code including a set of maliciously introduced unauthorised instructions or code, programmatic or otherwise, which 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 contents mean contents of buildings, customers’ goods, chattels in the open or under shelter, tenant’s improvements, plant and equipment and all other tangible property not more specifically described in the schedule. Contents also extends to include landlord’s glass, fixtures and fittings and other landlord’s property for which you are responsible if not included under buildings , located in or about the situation and used in connection with your business. Provided that the contents are: 1. owned by you; and/or 2. leased, hired or borrowed by you. Contents does not include stock or employee’s property. Customers’ goods customers’ goods mean property, other than a building, that is: 1. owned by your customers; and 2. in your temporary possession or temporary legal control in the course of your business activities. Customers’ goods does not include contents. Cyber act cyber act means an unauthorised, malicious or criminal act or series of related unauthorised, malicious or criminal acts, regardless of time and place, or the threat or hoax thereof involving access to, processing of, use of or operation of any computer system. Cyber incident cyber incident means: 1. deliberate and unauthorised corruption, amendment or erasure of electronic data by you or your directors, partners, employees, officers or any other person who has an interest in the insured property whether acting alone or in collusion with any other person; or 2. any error or omission or series of related errors or omissions involving access to, processing of, use of or operation of any computer system; or Page 4 of 31 3. the gaining of unauthorised access to your computer via any communication system that is used by your computer system by any person other than you or your directors, partners, employees, officers or any other person who has an interest in the property covered by this policy any indirect financial loss or consequence arising from or in connection with a breakdown; or 4. the operation or presence of any computer program, including any computer virus, that alters or erases electronic data or programs in a manner that is undesired by you. Data processing media data processing media means any insured property covered by this policy on which electronic data can be stored but not the electronic data itself. Destroyed destroyed means so physically damaged by an insured loss that the property, by reason only of that loss, cannot be repaired or the cost of repair is uneconomic. Electronic data electronic data means facts, concepts and information converted to a form useable for communications, display, distribution, interpretation or processing by electronic and electromechanical data processing media or electronically controlled equipment and includes programs, software and other coded instructions for such equipment. Equivalent building equivalent building means: (a) a building or structure which is as nearly as practicable the same as the building or structure lost or destroyed, using modern equivalent materials, skills and techniques that are readily available and which, if the property is a building, are readily available in the country the damaged property is located and, incorporating such alterations as are necessary to comply with any Act of Parliament or Regulation that are in force on the date the loss occurs, but subject to any limitations or Exclusions to such Act of Parliament or Regulation under this policy; (b) where, as a result of any special circumstances, no building or structure which falls within the scope of paragraph (a) 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; (c) where, as a result of any special circumstances, no building or structure which falls within the scope of paragraph (a) 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 or function suitable to that requirement, but not more extensive than that performed by the building or structure lost or destroyed. Equivalent plant 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 to an equivalent capacity. Event event means an event, including continuous or repeated exposure to substantially the same conditions, or a series of events resulting from, or attributable to, one source or original cause. A series of events arising from any one cause during any period of 72 consecutive hours will be treated as one event. Excess excess means the first amount you bear in relation to each loss. Group of related companies group of related companies means a group of companies related or associated to one another by virtue of their ownership. Page 5 of 31 Hazardous substance emergency hazardous substance emergency means the same as the definition given to it in the Fire and Emergency New Zealand Act 2017 or any statutory amendment to or re-enactment of that Act. Imminent damage imminent damage (under the NHI Act) means any loss to a residential building or residential land that has not yet occurred if: (a) a natural disaster has occurred (‘the initial event’); and (b) NHC is of the opinion that, as a direct result of ‘the initial event’, the loss is more likely than not to occur within 12 months after the ‘initial event’ first occurred. Indemnity Value indemnity value means value of property insured at the time of loss, sufficient to place you back in the same financial position to that immediately prior to the loss. Landlord’s obligations landlord’s obligations mean you or the person who manages the insured property on your behalf must: 1. exercise reasonable care in the selection of tenant(s) by obtaining at least satisfactory verbal or written references; and 2. complete an external and internal inspection of the property at a minimum of three monthly intervals and upon the change of every tenant(s); and 3. keep a written record of the outcome of each inspection, and provide a copy to us if a copy is requested. Loss loss means accidental physical loss or accidental physical damage. Machine machine means any device that: 1. Converts and directs motion or energy; or 2. Performs any electronic process including any protective component in connection with that device. Media material media material means any optical discs or any magnetic medium that can be used to store data or software such as, but not limited to, tapes, discs or cards. Money money means current coin, bank and currency notes, cheques, traveller’s cheques, postal notes, bank drafts, phone cards, credit card vouchers, money orders, unused postage and revenue stamps, redeemable vouchers and tokens, franking machine credits, tickets, credit card vouchers, and other negotiable instruments. Natural hazard natural hazard means any sudden and accidental loss that results directly or indirectly from earthquake, hydrothermal and/or geothermal activity, subterranean fire, volcanic activity, tsunami, or fire caused by any of these perils. NHI Act NHI Act means Natural Hazards Insurance Act 2023 and any Act in substitution of that Act. NHI Act will also be taken to mean the Earthquake Commission Act 1993 where the claimed loss and/or damage occurred while that Act was in force. In such circumstances, the equivalent definitions under that Act will apply. Page 6 of 31 NHI residential property NHI residential property mean residential property that is covered by the relevant sections of the NHI Act. If any NHI residential property insured by this policy suffers natural hazard damage during the period of insurance of the kind covered by the NHI Act, our liability will be limited to any costs in excess of those covered by the Act. The excess amount under this policy will only apply to the extent that it exceeds the amount of the cover under that Act. For the purpose of this definition, the cover under the NHI Act is deemed to include the amount of ‘excess’ imposed by the terms of that cover. Period of insurance period of insurance means the period of time stated in the schedule that this policy is in force. Policy policy means the proposal and any other information you supplied us when this insurance was arranged, this Policy Wording, the schedule and any endorsement attaching to the policy. Pressure vessel pressure vessel means a vessel that during ordinary use is subject to generated or applied fluid pressure or vacuum, and includes all parts, controls and systems of that vessel. Principal principal means any of your directors and executive officers, but only in their capacity as such. Production process production process means any process of producing, making, treating or servicing goods. Property property means all tangible property of every description which you: 1. own (solely or jointly); or 2. hold in your care, custody or control, and are legally responsible or have assumed responsibility for, within the four categories in the schedule. Regulations regulations means building or other regulations made under or framed in pursuance of any Act of Parliament or regulation or by-law of any local authority. A reference to any statute, regulation or subordinate legislation includes any amendment, replacement, successor or equivalent to or of that statute, regulation or subordinate legislation. Reinstatement reinstatement means: (a) where property is lost its replacement by an equivalent building or by equivalent plant as the case may require; (b) 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 modern equivalent materials, skills and techniques that are readily available and which, if the property is a building, are readily available in the country the damaged property is located and, incorporating such alterations as are necessary to comply with any Act of Parliament or Regulation that are in force on the date the loss occurs, but subject to any limitations or Exclusions to such Act of Parliament or Regulation under this policy; Schedule schedule means the most recent schedule to this policy. Page 7 of 31 Site Deductible Amount The amount specified in the schedule applied to the Total Sum Insured of property covered under this policy at the common site. Situation situation means the situations described in the schedule located in New Zealand. Software software means any instructions used to control the operation of a computer provided that these instructions are recorded on media material. Stock stock means stock and materials in trade. Provided that they are: 1. owned by you (including joint ownership with others); or 2. in your care, custody or control and for which you are legally responsible. Subsidiary subsidiary means a company that has more than half of its equity share capital owned by a parent company either directly or through other subsidiaries. Sustainable products sustainable products means: (a) products that increase the efficiency of the building(s) relating to the use of energy and/or water; and (b) rebuilding materials that reduce environmental impacts. Transmission and Distribution lines transmission and distribution lines means 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. Undamaged undamaged means not damaged physically and directly by an event insured by this policy. Vehicle vehicle means any type of machine on wheels, tracks or rollers that is propelled by its own power, and anything designed to be towed by such a machine. Wages wages mean the remunerations (including bonuses, holiday pay, sick pay, long service leave, accident compensation levies and any other benefits and charges pertaining to wages and treated as part of remuneration) of all employees other than those whose remunerations are treated as salaries in your books of account. You, your, yours you, your, yours means the persons or entities named in the schedule as Insured, who are insured severally, and any subsidiary or any other organisation under the active management control of that insured. We may also use the word ‘insured’ to describe you. Page 8 of 31 Cover If, during the period of insurance, a loss happens to any of your property at the situation, we will indemnify you for that loss subject to the terms of this policy. 1. Maximum amount payable Our total liability under this policy to all insureds under it will not exceed the Total Sum Insured in the schedule for each situation. This Total Sum Insured is inclusive of the total of all the property listed in the schedule and any additional amounts payable under this policy. Our total liability under this policy to all insureds for all property within the categories of property in the schedule (Buildings/Contents/Stock) at each situation, will not exceed the corresponding sum insured in the schedule for that category. 1.1 Basis of Indemnity Payment/Repair/Replacement We will indemnify you by payment, repair or replacement of your property. 1. For the following property we will indemnify you on the following basis: (a) Customer’s Property – the market value at the time of the loss unless you are required to insure the property for replacement cost. (b) Employees’ and directors’ property – the market value at the time of the loss, except where you are required to insure the property for replacement cost. (c) Electric motors, starters, sealed and semi-sealed units – the replacement cost of items 7 years old or less. For items older than 7 years the depreciated replacement cost. (d) Experimental and research projects – the cost of all materials and the value of labour expended on the projects, but excluding the value of the projects themselves. (e) Hothouses, glasshouses and shade houses – where the exterior cladding is of flexible plastic material any claim in respect of such cladding will be based on a depreciated replacement value, notwithstanding the reinstatement provisions in the policy. Depreciated replacement value is a straight line depreciation based on the manufacturer’s expected effective life span of the cladding with a maximum of five years. (f) Portable tools of trade: (i) electric, electronic (excluding portable computer and video data projectors) or other motor-driven equipment – the replacement cost, if insured for replacement, for items 5 years old or less. (ii) Portable computers and video-data projectors – the replacement cost, if insured for replacement, for items 2 years old or less. (iii) All other portable tools of trade – the replacement cost, if insured for replacement, for items 10 years old or less. In all other situations, we pay the market value at the time of loss. (g) Stock – for loss to stock that is not customers’ goods, we will indemnify you by using one of the following methods: (i) for raw materials, supplies and other merchandise not manufactured by you: 1. the replacement cost at the time of replacement, provided that the replacement is carried out within a reasonable period of time; or 2. if this property is not replaced the market value of it at the time and place of the loss. (ii) for materials in the process of manufacture: the replacement cost of the raw materials and the cost of labour and other overhead charges expended at the time of the loss, Page 9 of 31 (iii) for finished goods: the replacement cost of the raw materials and the cost of labour and other overhead charges expended before any allowance for profit, or the cost of re-stocking these goods, whichever is the lesser. Stock – for loss to stock that is customers’ goods, we will pay: (i) the Indemnity Value of the customers’ goods; or (ii) the cost to repair the customers’ goods, as near as reasonably possible, to the condition they were in immediately prior to the loss. (h) Works of Art: Where a claim is payable for damage to property insured comprising a work 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-damage condition. If the valuer or restorer determines that the work of art cannot be economically restored to its pre-damage condition, the work of art will be deemed destroyed. Its pre-damage value will be determined by the valuer or, providing the restorer is suitably qualified, by the restorer. The amount payable as indemnity will be the difference between the pre-damage value and any salvage value of the damaged work of art. If the valuer or restorer determines that the work of art can be economically restored to its pre-damage condition, the amount payable as indemnity will be the cost of restoration or, if the restoration is not carried out, the restorer’s reasonable estimate of the cost of restoration. Where any lost or damaged 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-loss condition, the item will be deemed totally lost or destroyed. The amount payable as indemnity will be such proportion of the pre-loss value of the pair or set as the item bears to the set of items. Providing a work of art has been satisfactorily restored following damage, this insurance will not cover any reduction in market value due solely to the fact of the work of art having been damaged and restored. The onus of proving that any restoration work is unsatisfactory rests with you. 2. For all other property we will indemnify you on the following basis: (a) the reasonable cost of repairing the property to the condition it was in immediately preceding the loss; or (b) the cash amount equal to the reasonable cost of repairing it; or (c) replacing the property with similar property in a similar condition; or (d) the cash amount equal to the market value of the property; or (e) the replacement cost, but only for that property designated in the schedule as being insured for replacement value, subject to the Reinstatement clause in the policy. 2. Additional Cover This policy includes cover for the following: 2.1 Alternative residential accommodation If the insured property is a residential unit that is owned and occupied by you, or any of your directors or employees and it cannot be lived in due to sudden and accidental loss to the residential unit, where that loss: 1. is covered by this policy; or 2. would have been covered by this policy, but is covered by the NHI Act instead, then you are insured for the reasonable additional costs of temporary accommodation that is of a similar standard to the residential unit for: (a) you, or any of your directors or employees; and (b) your, or any of your director’s or employee’s, domestic pets. Page 10 of 31 The most we will pay for any event is limited to 25% of costs incurred in replacing, repairing, or reinstating the affected accommodation or $25,000 whichever the lesser, per residential unit, (unless a different amount per residential unit is shown in the schedule) up to a total of the sum insured shown in the schedule for Alternative Accommodation. However, in all cases we will not pay more than 12 months’ rent for any event. Payment under this extension is in addition to ‘1. Maximum Amount Payable’. If you have alternative accommodation cover under any other policy with us, then the most we will pay under all policies in total per residential unit for any event is the highest applicable limit. 2.2 Capital additions Cover is extended to property acquired by you (including but not limited to alterations, additions and improvements to existing property) at the situation described in the schedule during the period of insurance provided that you notify us within 90 days of you acquiring the property or the physical works being completed. However: 1. This additional cover does not apply to stock, or property of any kind expressly excluded from this insurance, or any appreciation of value that is not due to a physical alteration, addition or improvement. 2. This additional cover takes effect on the acquired property when the risk in the property passes to you 3. At the end of the period of insurance, or at earlier intervals if you prefer, particulars of the property acquired must be given to us. On receipt of those particulars we may charge an additional premium calculated pro-rata from the date on which cover commenced, and if the period of insurance has not yet expired, the terms of this additional cover 2.2 will be fully reinstated. The limit of cover for this clause is $100,000 for any one event or the amount shown in the schedule. The amount payable under this clause is in addition to the indemnity otherwise payable for the property listed in the schedule. 2.3 Claims assessment costs We will cover claims assessment costs, including but not limited to fees reasonably incurred by or on behalf of you for the purpose of assessing or preparing any valid claim made under this policy. These costs include the reasonable salaries, wages, overheads and other expenses of your employees and consultants. The amount payable under this clause is included within the Total Sum Insured of this policy. 2.4 Demolition and Other costs We will cover reasonable costs incurred for any of the following purposes in consequence of loss insured under this policy: 1. Demolition, dismantling, shoring or propping up of your property; 2. Recovery, removal, storage and return of stock, plant and other chattels whether damaged or undamaged; 3. Cleaning up, removal and disposal of debris (regardless of whether the debris is part of the insured property or not), including any kind of solid, liquid or gaseous matter from the site of your damaged property and the area immediately adjacent to such site. 4. Temporary repairs and other measures (including the erection and maintenance of street and/or pavement hoardings and/or scaffolding) to secure the property or to make it safe or suitable for continued use. The amount payable under this clause is included within the Total Sum Insured of this policy. The cover provided 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. Page 11 of 31 2.5 Residential property – Natural hazard damage Where the insured property includes NHI residential property that is subject to statutory cover under the NHI Act, this policy does not cover damage caused by natural hazard to the extent it is covered by the NHI Act or would have been covered but for: 1. the application of an excess under the NHI Act; 2. a failure by you or your intermediary to correctly notify a claim to the Natural Hazards Commission within the time required under the NHI Act; 3. a decision by the Natural Hazards Commission to decline a claim for the damage or limit its liability for that damage in whole or in part for any reason whatsoever; and/or 4. any act or omission on your part, the part of your intermediary, or the part of the Natural Hazards Commission. Where the Natural Hazards Commission agrees to provide cover but the damage exceeds the Natural Hazards Commission payment, the maximum we will pay is the difference between the amount paid or payable by the Natural Hazards Commission (including the NHI excess) and our maximum entitlement under this policy. In all cases, the minimum site deductible amount specified in the schedule applies to each and every claim. We are not liable for imminent damage as determined by Natural Hazards Commission under NHI Act. 2.6 Electric current damage Notwithstanding clause 2 of exclusion 16,, this policy extends to cover loss to: 1. electric motors and starters, sealed and semi-sealed units which do not individually exceed 10kw or 13.6 hp; 2. distribution switchboards and permanently installed electrical reticulation; directly caused by the failure of electrical insulation, or abnormal or artificially generated electric current, or electrically induced self-heating. The additional cover does not apply to (a) loss of use; (b) loss to lighting or heating elements, fuses or protective devices, or electric contacts at which sparking or arcing occurs in ordinary working; The amount payable is included in the sum insured on the affected property. 2.7 Electronic Data Notwithstanding Exclusion 4, this policy extends to cover loss to electronic data caused by any of the following: (a) fire, explosion, lightning; (b) windstorm, hail, tornado, cyclone, hurricane; (c) natural disaster perils; (d) flood, freezing, weight of snow; (e) impact from any external source, including but not limited to, aircraft or other aerial objects dropped from them and/or by any road vehicle or animal; (f) bursting, overflowing, discharging or leaking of water tanks, apparatus or pipes; or (g) 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. 2.8 Employees’ effects We will cover the personal effects of your directors and employees for which you are responsible, but only whilst the effects are at premises owned or occupied by you, or elsewhere whilst being worn, kept, carried or used by the directors or employees acting in the course of their duties to, or employment with, you. The effects are deemed to be included in the description of insured property as if they were owned by you. Page 12 of 31 This additional cover does not apply to loss to the personal effects of any director or employee who is entitled to indemnity for that loss under any other policy of insurance. However, we will not be liable for more than $5,000 for any one director or employee, and $10,000 for any one event, unless noted otherwise on the schedule. The amount payable is included in the sum insured on the affected property. 2.9 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, air freight, overtime labour, penalty labour and additional labour as are reasonably incurred for the purpose of expediting that reinstatement. The amount payable under this clause is included within the Total Sum Insured of this policy. 2.10 General average/Salvage charge We will indemnify you against general average and salvage charges adjusted or payable in connection with any insured property being transported during the period of insurance by sea or air between places in New Zealand according to the contract of affreightment and/or the governing law and practice. This indemnity is free of any excess amount. The amount payable under this clause is included within the Total Sum Insured of this policy. 2.11 Gradual damage – Residential portion of the building Notwithstanding clauses 1 and 2 of exclusion 12, we will cover the residential portion of your insured property for loss resulting from the action of hidden mildew, hidden rot or hidden gradual deterioration, caused by liquid which leaks or overflows from any internal water pipe, internal waste disposal pipe or internal water tank permanently installed at the situation. Provided that the leak or overflow first occurs and the loss is first discovered during the period of insurance. The limit of cover for this clause is $5,000 for any one 12 month period. The limit includes the cost of locating the leak provided we have given our prior consent (not to be unreasonably withheld). We will not pay for repairing the leak. The costs payable are included in the sum insured on the affected property. 2.12 Hazardous substance emergency We will indemnify you for the reasonable costs that the any Local Body or Authority, or any other entity is authorised to make against you for any hazardous substance emergency during the period of insurance arising out of or in connection with insured property whether or not there is loss to insured property. The limit of cover for this clause is $20,000 any one event, or the amount shown in the schedule. The costs payable are included in the sum insured on the affected property. 2.13 Illegal substances We will indemnify you for accidental loss to the building and any other insured property within that building specified in the schedule, caused by the manufacture, possession, supply, storage, distribution or use of any controlled drug as defined in the Misuse of Drugs Act 1975 including methamphetamine, and/or any pre- cursor chemicals or materials used in any of these activities provided that: 1. you own the building; and 2. the building is: (a) an accommodation business (a hotel or motel) operated by you and the damage is caused by a paying guest; or (b) leased to a tenant and you or person who manages the tenancy on your behalf has met the landlord’s obligations. Page 13 of 31 This additional cover will only apply when the level of chemical contamination exceeds 15 micrograms per 100 square centimetres (15µg/100cm2) at the time the claim is notified to us. This extension will only cover decontamination to the extent required to achieve a post remediation level of less than 15µg/100cm2. The most we will pay under this additional cover is $25,000 any one event, up to a maximum of $100,000 in the period of insurance. However, for accidental loss resulting from fire or explosion the most we will pay is the sum insured specified in the schedule. 2.14 Increased amount for Stock and Contents The amount referred to in “1. Maximum amount payable” is increased as follows: The most we will pay in total during the period of insurance: 1. for all contents at the situation shown in the schedule is the sum insured for contents at that situation plus: (a) 10%, or (b) $100,000, whichever is the lesser. 2. for all stock at a situation shown in the schedule is the sum insured for stock at that situation plus (a) 10%, or (b) $100,000, whichever is the lesser. Provided that: 1. these increases for contents and stock do not apply to cover provided by ‘Optional Additional Cover 3.3 Natural Disaster (Earthquake)’, and 2. the most we will pay in total during the period of insurance at all situations for all contents and all stock remains unchanged 2.15 Inventory We will indemnify you for the reasonable costs incurred by the insured in taking inventory (including but not limited to unpacking, repacking and restocking) to establish the value of insured property following loss covered by this policy. The amount payable under this clause is included within the Total Sum Insured of this policy. 2.16 Landscaping Following an insured loss we will cover the reasonable cost to repair or replace landscaping which shall include ornamental trees, shrubs, plants, hedges and lawns including expenses reasonably incurred in clearing, cleaning or repairing paving, drains, gutters, sewers, pipes, tanks or fixed apparatus, up to the amount shown in the schedule. The amount payable under this additional benefit is included within the Total Sum Insured of this policy. 2.17 Money Notwithstanding clause 2 of exclusion 14, cover is extended to include loss during the period of insurance of: Part A 1. money in transit. 2. money at your business situation or sites of contract during business hours. 3. money in a securely locked safe or strongroom at your business situation outside business hours. Page 14 of 31 Part B 1. money at your business situation outside business hours and not in a securely locked safe or strongroom, including money in cash machines or gambling machines. 2. money at your residential premises or of any principal or authorised employee of yours. Employee Theft: Notwithstanding clause 2 of exclusion 11, this policy extends to cover loss of money caused by or arising from theft by any of the insured’s employees if the loss is discovered within 72 hours (excluding Saturdays, Sundays and other public holidays) of the act of theft or fraud. Exclusions for this Money Clause This clause does not insure: 1. loss due to errors in receiving or paying out; 2. loss occurring whilst 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; 3. loss resulting from payment of money in exchange for any cheque which is subsequently dishonoured; 4. loss occurring whilst the money is in an unlocked and unattended vehicle; 5. loss of money stolen from a safe or strongroom opened by a key or combination, either of which was left at the situation outside business hours, unless such key or combination was properly secured; 6. loss directly resulting from theft or fraud by any of your employees. However, this exclusion does not apply to loss discovered within 72 hours (excluding Saturdays, Sundays and public holidays) of the act of theft or fraud; 7. loss covered by a valid and collectable claim under a policy of Fidelity Guarantee (or equivalent) form of insurance. Limits of Liability for this Money Clause Our liability under Part A is $10,000 any one event and Part B is $1,000 any one event, unless stated otherwise on the schedule. 2.18 Property under construction Notwithstanding clause 1 of exclusion 14, we will cover you for property in the course of installation, construction, demolition, erection, or testing following any of them, provided the property is owned or to be owned or occupied by you and provided the completed value of the contract does not exceed $100,000, or the amount otherwise stated in the schedule. 2.19 Portable tools of trade (including electronic equipment) Notwithstanding exclusion 4. for ‘Electronic Data’ we will cover portable tools of trade including portable electronic equipment such as laptops, cell phones, electronic notebooks and diaries, video data projectors or similar and their associated carrying cases used in your business while away from your business premises anywhere in the world including while in transit. However, the following conditions apply: 1. the limit of cover is $7,500 per item and $15,000 any one event. 2. the excess of $1, 000 applies for each and every event unless a different amount is stated in the schedule. 3. we will not cover you for theft of portable tools of trade including electronic equipment from unlocked or insecure vehicles or insecure containers or the open air. Page 15 of 31 2.20 Professional fees We will cover all reasonable professional and clerk of works’ fees, salaries and costs necessarily incurred in reinstating damage to your property which is insured under this policy. This clause does not apply to fees for preparing claims made under this policy. The amount payable under this clause is included within the Total Sum Insured of this policy. 2.21 Protection costs We will cover costs reasonably incurred by you, during the period of insurance for the purpose of, and for damage directly resulting from, controlling any cause of loss that threatens to involve the insured property which would be covered under this policy. However 1. this indemnity does not apply to costs or damage for which indemnity would be payable under this policy in the absence of this clause; 2. the limit of cover is $25,000 any one event. The cost payable is included in the sum insured on the affected property. 2.22 Redundant foundations Where the foundations of any building or plant are made redundant for any reason in consequence of loss to the property resting on them covered under this policy and, if the value of the foundations is reduced as a result, the loss of value will be deemed to be loss for the purpose of any claim under this policy. 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 property to which they are fixed, the amount of the increase will be treated as salvage in the adjustment of loss for claim settlement purposes. The amount payable under this clause is included within the Total Sum Insured of this policy. 2.23 Redundant plant, Equipment and Stock We will cover the market value of your insured plant, equipment and stock made redundant as a result of loss to other insured property covered under this policy. However, the following conditions apply: 1. the plant and equipment must be: (a) part of the same interdependent system or line as the lost or damaged insured property; or (b) part of a stock of spares held exclusively for the lost or damaged insured property. 2. if the presence of the redundant plant and equipment increases the resale value of the original building site then we will offset the increase in resale value from the claim payment. 3. If, due to the loss, stock is made redundant, that stock will be considered as part of the loss. The amount payable under this clause is included within the Total Sum Insured of this policy. 2.24 Refrigerated goods Notwithstanding clause 2 of exclusion 13, we will cover: 1. loss during the period of insurance to perishable goods at your business’s situation where the goods are stored in refrigerated cabinets or chambers from; (a) accidental breakdown, damage, stoppage or malfunction of refrigerating plant from any cause, including accidental or malicious disconnection of the power supply or disconnection or failure of the public electricity supply by the supply authority; or (b) contamination by the escape of refrigerant gas or liquid into the refrigerated cabinet, chamber or cool store; Page 16 of 31 2. additional costs reasonably and necessarily incurred to avoid or minimise loss during the period of insurance to refrigerated goods by transferring the threatened property to alternative refrigerated storage or by other means. The limit of cover for this clause is $5,000 per event. The amount payable under this clause is included in the sum insured on the affected property. 2.25 Rewards We will cover the cost of any reward paid by you for the purpose of recovering any of your property that has suffered a loss covered under this policy. However: 1. no payment will be made unless it contributes to the protection or recovery of the property; 2. the terms of the reward must be agreed by us prior to the reward being offered; 3. our liability will not be increased beyond the sum insured on your property concerned. We will not unreasonably refuse our agreement to the terms of a reward payable under this clause. The amount payable under this clause is included within the Total Sum Insured of this policy. 2.26 Rewriting of records Notwithstanding the definition of property and notwithstanding the exclusion 4, for ‘Electronic Data’ we will pay the reasonable costs of collecting and reproducing the information on your business records that suffer a loss covered under this policy. The value of the information itself is not insured. However, the following conditions apply in respect of electronic data: 1. you must have all electronic data on back-up files; 2. there must be an adequate back-up system in operation and that back-up system must have been effectively tested; and 3. back-ups must be kept secure on or off site and must be updated at least on a weekly basis. The limit of cover for this clause is $10,000 per event. The amount payable under this clause is included in the sum insured on the affected property. 2.27 Social club The property of any pension fund, social club, sports club or similar body whose activities are principally for the benefit of your employees is deemed to be included in the description of insured property as if it were owned by you. The amount payable under this clause is included within the Total Sum Insured of this policy. 2.28 Sustainable Rebuilding Costs We will cover additional reasonable costs incurred to upgrade building(s) with sustainable products, provided that: 1. the building(s) is destroyed; and 2. reinstatement Additional cover applies to the building(s); and 3. the building(s) are reinstated; and 4. we approve the sustainable products, approval of which will not be unreasonably withheld. The most we will pay for any event for such costs, is limited to 5% of the actual cost of reinstating the building or $250,000 whichever is lesser. The amount payable under this clause is included within the Total Sum Insured of this policy. Page 17 of 31 2.29 Lost or Stolen keys Where any key (including electronic keys and swipe cards or any equivalent device) or combination giving access to insured property is lost or stolen or believed on reasonable grounds to have been duplicated without proper authority during the period of insurance, we will indemnify you for the costs reasonably and necessarily incurred in altering or replacing locks and their keys or combinations. Cover also includes the reasonable cost of opening any safe or strongroom following theft of its key or combination. The amount payable under this clause is limited to $10,000 per event and included within the Total Sum Insured of this policy. 2.30 Repair or Reinstatement by the Insured We will allow the insured to undertake any repair, reinstatement or replacement work in relation to loss covered by this policy and due allowance shall be made for a reasonable margin of profit, provided the insured has the required qualifications and capability to undertake such work and their charges and/or costs are competitive. 2.31 Subsidence or Landslip Notwithstanding clause 2 of exclusion 5, this policy extends to cover loss during the period of insurance arising directly or indirectly from sudden and unforeseen subsidence or landslip of land beneath or adjacent to the affected property. However, the following conditions apply: 1. In relation to the removal of land which has moved or slipped, we will only provide cover for the area of the building line and immediately adjacent areas up to a maximum of 5 metres from the external walls of the building. Cover for the removal of land is limited to $10,000. We will not cover any land stabilisation charges incurred. 2. We will not cover: (a) any loss or decrease in the value of the land or site; (b) subsidence of land or erosion of land by the action of the sea; (c) normal settling, shrinkage or expansion of land, buildings or foundations; (d) subsurface subsiding due to the water table drying out through atmospheric or climatic conditions. 3. The limit of cover is $500,000 for each event. The excess amount is the amount specified in the schedule or if no amount is stated then $20,000 for each event. The costs payable under this clause are included in the sum insured on the affected property. 2.32 Temperature change protection We will cover the reasonable costs of avoiding loss to insured property in a temperature-controlled environment resulting directly from loss to insured property covered under this policy. This includes the reasonable costs incurred of removing your property and storing it at another place. The amount payable under this clause is included within the Total Sum Insured of this policy. 2.33 Temporary removal Notwithstanding clause 6 of exclusion 14, we will cover your property (except stock) whilst temporarily removed to any place in New Zealand and whilst in transit to or from that place, subject to the Transit limit specified in the schedule as per additional cover 2.35 Transit. However, our liability will not exceed the amount for which we would be liable had the loss occurred at the particular place from which the property is temporarily removed. In this clause, temporarily removed means 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. Page 18 of 31 2.34 Theft We will cover theft or any attempt thereat, subject to exclusion 4.. The portable tools of trade clause applies in priority over this clause. The maximum amount payable under this clause for such loss is $100,000 subject to $2,500 excess per event, unless stated otherwise in the policy schedule. 2.35 Transit We will cover your property whilst it is in transit anywhere in New Zealand, including between New Zealand ports. However, the following conditions apply: 1. The limit of cover is $25,000 for each event. 2. Clause 6 of exclusion 14 does not apply. In respect of any goods destined for transit beyond New Zealand, cover under this policy ceases at the time the goods pass over the ship’s rail or through air transport loading doors at any New Zealand port or airport. The amount payable under this clause is included in the sum insured on the affected property. 2.36 Unharmed property If, for the sole purpose of reinstating your property which is insured under this policy, it is necessary to demolish, damage or remove any property or part unharmed, we will indemnify you for the cost of doing so. We will also indemnify you for the cost of reinstating the property or part to a condition the same as, but not better nor more extensive than, its condition immediately prior to the demolition, damage or removal. The amount payable under this clause is included within the Total Sum Insured of this policy. 2.37 Working from home We will cover you for accidental loss to office equipment while situated at the residence in New Zealand of any of your employees for the purpose of working from home. The amount payable under this cover is limited to the lesser of $10,000 for any one event or the sum insured for contents shown in the schedule. 3. Optional Additional Covers Each of the following clauses will have no effect unless there is a statement in the schedule that the particular clause will apply. 3.1 Boiler explosion Notwithstanding Exclusion 5 (a), this policy extends to cover explosion, rupture, bursting, cracking, leakage, collapse or overheating of any steam boilers economiser, pipe or any other vessel being insured property due to generated or applied fluid pressure within or without. We will not be liable under this additional cover for: (a) loss or damage caused by rust, corrosion, boiler scale or oxidation of any kind; or (b) the cost of carrying out alterations, additions, improvements, overhauls or maintenance. The amount payable under this clause, in respect of any one loss, is limited to the amount shown in the schedule. Page 19 of 31 3.2 Machinery breakdown Notwithstanding clause 2 of exclusion 16, this policy extends to cover mechanical or electrical or electronic breakdown of machinery or electrical equipment being insured property, with no reduction being made for parts replaced where damage is repaired. For insured property that is uneconomic to repair the basis of settlement will be the replacement cost at the time of its replacement if less than 10 years old, or its Indemnity Value if more than 10 years old. We will not be liable under this optional additional cover for: 1. damage to belts, ropes, wires, chains, tyres, dies, exchangeable tools, engraved cylinders, glass components, porcelain components, ceramics, refractories, felts, sieves, fabrics, jointing, packaging and operating media (except loss of refrigerant or insulating oil); 2. wasting or wearing away or wearing out of any part caused by or naturally resulting from ordinary use or working, gradual deterioration, damage due to cavitation scratching of painted or polished surfaces; 3. the cost of carrying out alterations, additions, improvements, overhauls or maintenance. Our liability, in respect of any one loss, is limited to the amount specified in the schedule for Machinery Breakdown. 3.3 Natural Disaster (Earthquake etc) Notwithstanding clause 1 of exclusion 5, this policy extends to cover loss to your property directly or indirectly caused by: 1. natural hazard; or 2. measures taken under proper authority, following any event covered by this optional additional cover to (a) avoid its spreading; or (b) reduce its consequences; Provided that the following conditions apply: 1. the clause only applies to your property for which indemnity is not provided under the provisions of the Natural Hazard Insurance Act 2023; 2. The excess to be paid by you is the amount or percentage shown in the schedule. Page 20 of 31 Exclusions 1. War and Terrorism This policy does not insure any death, injury, loss, damage, liability, cost or expenses of whatever nature directly or indirectly caused by, resulting from, or in connection with, any of the following regardless of any other contributing cause or event: 1. war, invasion, acts of foreign enemies, hostilities or warlike operations (whether war be declared or not), civil war; 2. mutiny, civil commotion assuming the proportions of or amounting to a popular rising, military rising, insurrection, rebellion, revolution, military or usurped power, or any act of any person or persons acting on behalf of or in connection with any organisation the objects of which are or include the overthrowing or influencing of any de jure or de facto government by terrorism or by any violent means; 3. any act of terrorism. This policy also excludes any cost or expense of any 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, the events excluded above. 2. Confiscation, Nuclear This policy does not insure loss directly or indirectly caused by: 1. confiscation, requisition, or destruction of or damage to 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; 2. nuclear weapons material; 3. ionising radiations or contamination by radioactivity from any nuclear fuel or from any nuclear waste from the combustion of nuclear fuel. (For the purpose of this exclusion, combustion includes any self-sustaining process of nuclear fission). 3. Cyber risk This policy does not cover 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. However, subject to all the terms, conditions, limitations and exclusions of this policy, we will cover any loss to insured property, resulting from any ensuing fire, explosion, implosion, impact by aircraft or aerial object dropped therefrom, impact by road vehicle water, flood and/or water and other liquids and/or substances discharged and/or overflowing and/or leaking from any apparatus and/or pipes only, occurring at your situation, which directly results from a direct cyber incident or cyber act causing such loss and including any consequential loss insured by this policy. 4. Electronic data This policy does not insure: 1. total or partial destruction, distortion, erasure, corruption, alteration, misinterpretation or misappropriation of electronic data; 2. error in creating, amending, entering, deleting or using electronic data; 3. total or partial inability to use or failure to receive, send or access electronic data for any time or at all, or 4. any loss of use, reduction in functionality, repair, replacement, restoration or reproduction of any electronic data. However, 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 above, then subject to all provisions in this policy, we will insure: (i) physical loss of or damage or destruction to insured property directly caused by ‘Listed peril’, and/or (ii) consequential loss. Page 21 of 31 ‘Listed perils’ are fire, lightning, explosion, implosion, earthquake, impact by aircraft or aerial object dropped therefrom, impact by road vehicle, the acts of persons taking part in riots or civil commotions, storm and/or flood and/or water and other liquids and/or substances discharged and/or overflowing and/or leaking from any apparatus and/or pipes at the premises and the theft of electronic data solely where such theft is a consequence of theft of any computer and/or computer hardware and/or firmware and/or microchip and/or integrated circuit and/or similar device containing such electronic data. For the purposes of the Basis of Settlement provision in this policy, computer systems records include electronic data as defined. 5. Natural hazard/Normal Settlement Unless explicitly stated in this policy and/or specifically shown in the schedule, this policy does not insure: 1. natural hazard damage; 2. landslip, subsidence, erosion or expansion of the land; and/or 3. normal settlement, shrinkage or expansion of buildings, foundations, walls, pavements, roads and other structural improvements. 6. Infectious disease This policy does not insure any loss, claim, cost, expense, or other sum, directly or indirectly caused by, arising out of, attributable to, or occurring concurrently or in any sequence with: 1. a notifiable disease under the Health Act 1956; or 2. any pest management plan under the Biosecurity Act 1993; or 3. any communicable disease. 7. 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 your responsibility and which are on or within 300 metres of any insured structure. 8. 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 accidental loss. 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 accidental loss. 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. 9. Building defects and Deterioration This policy does not insure against loss to any building or structure directly or indirectly caused by the failure of that building or structure to contain: 1. a material; or 2. a design; or 3. a system; or 4. a reasonable standard of workmanship; that was necessary to effectively prevent or manage the presence or penetration of moisture or water to which the building or structure might reasonably be subjected. Page 22 of 31 10. Faulty design, material, workmanship This policy does not cover the cost of: 1. repairing or replacing faulty materials; or 2. putting right faulty workmanship; or 3. putting right work performed to a faulty design, plan or specification; but this exclusion does not apply to any loss occurring as a result of that faulty material, workmanship or design, plan, or specification not otherwise excluded by exclusion 9. 11. Disappearances/Fraud/Theft This policy does not insure loss directly resulting from: 1. unexplained disappearances; shortages revealed only by the taking of an inventory; shortages due to clerical or accounting errors, shoplifting, misplacing of information; 2. your decision to hand over the property to someone else before you have paid for it; 3. theft of insured property from unlocked or insecure vehicles or insured property that is left in the open air unless in a secure yard; 4. theft or fraud by you or by any of your employees or principals; 5. any fraudulent scheme or device or false pretence practiced on you or on any other person having care of your property. 12. Deterioration This policy does not insure loss directly caused by: 1. normal working, normal maintenance, wear and tear, erosion, corrosion, gradual deterioration (including but not limited to gradual deterioration caused by dampness or penetration of moisture), slowly developing deformation or distortion; 2. action of micro-organisms (including but not limited to rot and mould), vermin or insects; 3. 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); 4. dust, fumes, smoke or smut, from industrial operations (other than sudden and unforeseen Damage) resulting therefrom moths, termites or other insects, vermin, rust, oxidation, mildew, mould, wet or dry rot, corrosion, change of colour, dampness, or atmosphere. 13. Artificially controlled temperature This policy does not insure loss in connection with a change in any artificially controlled temperature or atmosphere. 14. Excluded items Unless specifically shown in the schedule, this policy does not insure: 1. property in the course of installation, construction, demolition, erection, or testing following any of them; 2. 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 in value in each case for any one loss at any one situation, except as insured under the money clause; 3. jewellery, precious stones, furs, precious metals or bullion, other than as stock of the business or as part of any plant; Page 23 of 31 4. motor vehicles and other mechanical or electrically propelled vehicles (including but not limited to railway locomotives and rolling stock), and accessories contained in them or on them, other than: (a) any unregistered crane or other mobile plant used within or in the vicinity of any situation owned or occupied or operated by you; (b) held as stock of the business but not whilst in use or on demonstration; 5. watercraft and aircraft of every kind, and accessories contained in them or on them, except as held as stock of the business or for auction but not whilst in use or on demonstration; 6. property in transit other than at premises owned or occupied by you; 7. property damaged as a result of it undergoing any production process where the damage is directly caused by the operation of that process. 8. any of the following property unless it is specified in the schedule: standing timber, growing crops, crops harvested but not yet in storage, live plants, trees, hedges (other than live plants, trees and hedges covered under the building definition), livestock, dams, canals, reservoirs (but not tanks), road or railway tunnels, road or railway bridges (other than bridges or tunnels at premises owned or occupied by you included in the sum insured), docks, piers, wharves, mining property located beneath the surface of the ground, any land including topsoil and backfill; 9. any consequential economic losses whatsoever including penalties, loss of use of any property, delays, or loss of market. 15. Exposure to weather/Utilities/Cessation of work This policy does not insure loss: 1. directly caused by 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; 2. in connection with the interruption of the supply to your situation of water, gas, electricity or any other fuel; 3. in connection with the total or partial cessation of work, retarding or interruption or cessation of any process. 16. Machinery breakdown 1. In respect of the boiler or pressure vessel immediately affected, this policy does not insure the cost of repairing or replacing any part that has exploded, overheated, ruptured, burst, cracked, leaked or collapsed due to generated or applied fluid pressure or vacuum (but not pressure caused by chemical explosion). However, this exclusion does not apply to resultant loss to other insured property. 2. In respect of the machine immediately affected, this policy does not insure any mechanical or electrical breakdown or derangement. However, this exclusion does not apply: (a) If any insured loss originating completely outside the machine results in the mechanical or electrical breakdown or derangement of the machine. For the avoidance of doubt, there is no cover when the breakdown or derangement results from: (i) A part of the machine being drawn into it, or (ii) Any operator error or omission, or any servicing error or omission. (b) To resultant loss to other insured property. 17. Seepage, pollution and contamination This policy does not insure loss in connection with seepage, pollution or contamination except if the seepage, pollution or contamination results from sudden and accidental loss to insured property, which is otherwise covered under this policy. Page 24 of 31 Conditions 1. Application of Additional Cover clauses Where the terms of any Additional Cover clause in this policy are inconsistent with any other terms of the policy, the terms of the Additional Cover clause will prevail. Where the terms of any Additional Cover clause are inconsistent with the terms of any other Additional Cover clause, the terms most favourable to you will prevail. Where the schedule states that an Additional Cover clause is subject to a special limit or other special provision, the limit or provision will apply to that Additional Cover clause but not to other loss that would be covered under the policy without the Additional Cover clause. 2. Breach of warranty or condition The indemnity provided by this policy will not be invalidated or prejudiced by reason of any breach of warranty or condition of this policy where the breach occurs without your knowledge. This insurance will also not be prejudiced by any act of the owner or occupier whereby the risk of loss to property is increased without your authority or knowledge provided that notice is given to us immediately when you become aware of any of the above happenings, and you agree to pay an appropriate additional premium if required. 3. Cancellation 1. By you: This policy may be cancelled by you at any time, and with immediate effect, by written notice delivered to us. In the event of such cancellation, we will be entitled to a pro rata proportion of the premium and any tax or duty paid or owing for which we are unable to obtain a refund (subject to any adjustment required by the terms of this policy). 2. By us: This policy may be cancelled by us at any time by giving notice to you. The notice may be by letter, facsimile or email to your last postal address, facsimile or email address on our records (or your insurance broker’s or agent’s). To the extent permitted by law, we may also cancel this policy by giving you written notice to the effect where: (i) you, or any person who was at any time the insured, failed to comply with the duty of utmost good faith; (ii) the person who was the insured at the time when this policy was entered into failed to comply with the duty of disclosure; (iii) the person who was you at the time when this policy was entered into made a misrepresentation to us during the negotiations for this policy but before it was entered into; (iv) you or any person who was at any time the insured failed to comply with a provision of this policy, including a provision with respect to the payment of the premium; (v) you made a fraudulent claim under this policy or any other policy of insurance (whether with us or some other insurer) that provided insurance cover during any part of the period during which this policy provides insurance cover; (vi) you failed to notify us of any specific act or omission where such notification is required under the terms of this policy; or (vii) you acted in contravention of or omitted to act in compliance with any condition of this policy which empowers us to refuse to pay, or reduce its/their liability in respect of, a claim in the event of such contravention or omission. The cancellation will take effect at 4 p.m. on the 30th day after the notice has been posted, faxed or emailed. In the event of such cancellation, we will refund to you the pro rata proportion of the premium and any tax or duty paid or owing for which we are unable to obtain a refund (subject to any adjustment required by the terms of this policy). If the premium has been funded by a premium funding company which holds a legal right over this policy by virtue of a notice of assignment and irrevocable power of attorney, a refund will be made to the premium funding company of the proportionate part of the premium applicable to the unexpired portion of the period of insurance excluding any tax or duty paid or owing for which we are unable to obtain a refund. Page 25 of 31 4. Change of facts or circumstances You must notify us as soon as reasonably practicable if the risk of loss, damage, injury, illness or liability covered by your policy is materially increased by any change in circumstances, existing at the commencement of your policy, or at any subsequent renewal date, including, for example, a change to: (a) the nature or type of business carried on by you or your tenants; or (b) other circumstances that affect the premises or the property insured in such a way as to materially increase the risk of loss or damage. We reserve the right to assess any such change and may accept or deny coverage and/or vary the terms of coverage for any increased risk the change poses. If we and you agree to accept or vary the terms of coverage, you must pay such reasonable additional premium as we may require for any such coverage. If you fail to comply with this condition, we may be able to: (i) refuse a claim; (ii) reduce our liability to pay a claim by an amount that fairly represents the extent to which our interests are prejudiced by the failure to comply; or (iii) cancel this policy. However, this insurance will not be prejudiced by: 1. such changes in the use or occupancy of the situation as are usual or incidental to your business; 2. the performance of any structural alterations or repairs to insured property, providing the circumstances are reported to us in writing within a reasonable time after you become aware of them; and provided that you agree to pay a reasonable additional premium for the increased risk if so required by us; 3. the cessation of operations or vacancy of any building for a period not exceeding 30 days; However, the cessation of operations or vacancy of any building for a period in excess of 30 consecutive days is allowed, providing the circumstances are reported to us within a reasonable time after you become aware of them; and provided that you exercise reasonable care and attention to the premises and make sure the situation is safe and secure. 5. Claims Upon becoming aware of any circumstance, occurrence or loss giving rise, or likely to give rise, to a claim under this policy: You must: 1. take prompt steps to minimise the loss; 2. take reasonable steps to protect the property from further loss; 3. notify us as soon as reasonably practicable; 4. if a criminal act is suspected, inform the police; 5. at your expense, provide us with any reasonably required proof and information in respect of the claim. You must not: 1. prejudice our ability to settle the claim; 2. dispose of or abandon any property for which you intend to make a claim; 3. start any repairs without our permission unless it is necessary to prevent further loss. Page 26 of 31 You must then: 1. fully complete our claim form as soon as reasonably practicable; 2. give us free access to examine and assess any loss; 3. provide any other information or assistance we reasonably request in relation to your claim; 4. forward any letters of demand or court documents to us immediately; 5. if we request it, provide a statutory declaration to verify the loss; 6. if we request it, attend interviews with any person we nominate; 7. be responsible for the payment of the excess to us or to the repairer unless we are deducting it from any claim settlement to you. Your compliance with the terms and conditions of this policy, and the truth of any statements made to us (whether made by you or not), are conditions precedent to any liability for us to provide any indemnity under this policy. In the event of a valid claim under this policy, we will make progress claim payments on production of acceptable evidence of insured loss; Provided that, if the aggregate of progress payments exceeds the total amount of the adjusted loss, you will immediately refund the difference between the amount of adjusted loss and the aggregate of payments actually made. 6. Fraud If any claim is in any respect dishonest or fraudulent, all benefit under the claim to you will be forfeited. For the purpose of this condition if you consist of more than one person or entity, each of them will be treated as having been issued with a separate policy. 7. Headings Headings have been included for ease of reference, but do not form part of the policy. 8. Goods and Services Tax Provided that Goods and Services Tax (GST) is recoverable by us, the sums insured by this policy are exclusive of GST to the extent that, in the event of a claim, we will pay a maximum of the sum insured plus additional GST to a maximum of the current rate of GST applied to that sum insured. However, all excess specified in this policy are inclusive of GST. 9. Inspection We are entitled to inspect the insured property at any reasonable time and you must provide such information as may be reasonably required by us in relation to your property. Neither this condition, nor any inspection performed by us, nor any report arising from such an inspection, are to be regarded as an undertaking by us to determine or warrant that any operations or premises are safe. 10. Misdescription This policy is voidable retrospectively by us in the event of any misrepresentation, misdescription or non-disclosure of any material fact prior to inception. However, the insurance will not be prejudiced by: 1. any innocent and inadvertent misdescription of property or occupancy in the proposal; 2. any act of the occupier whereby the risk of loss to insured property is increased without your authority or knowledge; provided that notice is given to us immediately when you become aware of any of the above happenings and you agree to pay an appropriate additional premium if required. Page 27 of 31 11. More than one insured Where this policy is to the benefit of more than one person or entity named as the insured in the schedule: 1. The person or entity first named in the schedule will be responsible for payment, on behalf of all of you, of any premium due or that may become due in terms of this policy; 2. Our obligation to make any payment to you in terms of this policy will be discharged on making that payment to the person or entity first named in the schedule; 3. Any notice, for which provision is made in this policy, given by or given to the person or entity first named in the schedule will be deemed sufficient notice by or to all of you. 12. Mutually acceptable adjusters Where we wish to appoint a loss adjuster in respect of any claim under this policy, the appointee must be mutually acceptable to you and us. 13. Other Insurance When you make a claim on your policy you must provide us with details of all insurance policies that may respond in whole or in part to that claim. 14. Other interested parties If there is any mortgagee, debenture holder, hire purchase company, conditional purchaser or other party with a financial interest in any insured property which has been notified to us, we may, at our option, pay any claim to the interested parties in the order of their legal priorities, and to the extent of their financial interest. However, our total liability will not exceed the amount that would have been paid to you. 15. Proper law and jurisdiction The construction, interpretation and meaning of the provisions of this policy shall be determined in accordance with New Zealand law. A reference to any statute, regulation or subordinate legislation includes any amendment, replacement, successor or equivalent to or of that statute, regulation or subordinate legislation. In the event of any dispute arising under this policy including, but not limited to, its construction and/or validity and/or performance and/or interpretation, you will submit to the exclusive jurisdiction of any competent Court in New Zealand. 16. Recovery apportionment If we, having exercised our right of subrogation, recover any part or all of a loss in respect of which a claim has been paid or is payable under this policy, the amount so recovered will be apportioned as follows: 1. you will be fully reimbursed for any uninsured portion of the loss, excluding any underinsurance, including that portion of the loss which is uninsured by reason of an excess; 2. we will be fully reimbursed to the extent of our actual payment under this policy; with 3. any remaining balance belonging to you. Notwithstanding anything to the contrary in the excess Clause of this policy, no account will be taken of subrogated recoveries in determining the amount of adjusted loss to which the excess applies. 17. Sanctions regulation Notwithstanding any other terms or conditions under this policy, Zurich shall not be deemed to provide coverage and will not make any payments nor provide any service or benefit to you or any other party to the extent that such cover, payment, service, benefit and/or any business or activity of yours would violate any applicable trade or economic sanctions, law or regulation. Page 28 of 31 18. Subrogation Where, upon accepting liability for a claim under this policy, we are entitled to become subrogated to your right of recovery or indemnity from any other person or corporation, you must, at our expense, do and permit to be done anything reasonably required by us for the purpose of enforcing that right. You must comply with this condition when required, whether before or after having been indemnified by us. You shall not voluntarily and knowingly release any third party from liability arising from loss insured by this policy unless declared to and accepted by us. 19. Waiver of recovery This policy will not be invalidated or prejudiced by reason of you: 1. having waived any right of recovery or indemnity you may have against any: (a) party to a contract or agreement with you in the ordinary course of your business, provided the contract or agreement is not for the supply of goods or services by you and the waiver was made in writing before the loss occurred; (b) related company forming part of a group of related companies of which you are a member. For the purpose of this General Condition, ‘related company’ has the same meaning as the definition of those words in the Companies Act 1993; (c) other party provided that the waiver is made and has been declared to and accepted by us; or 2. having to release from liability any party in accordance with any legislative or regulatory requirement. 20. Bankruptcy or insolvency In the event that you should become bankrupt or insolvent, we shall not be relieved thereby of the payment of any claims because of such bankruptcy or insolvency. In case of execution against you of any final judgement covered by this policy being returned ‘unsatisfied’ by reason of such bankruptcy or insolvency, then an action may be maintained by the injured party or their representative against us in the same manner, and to the same extent as you, but not in excess of the Total Sum Insured. 21. Diligence You must not be reckless and must take reasonable care at all times and at your own expense to prevent loss to your property. You must do each of the following during the period of insurance, unless such impairment of system is notified, agreed and accepted by us: 1. Maintain in accordance with the manufacturer’s recommendations any fire protection or detection system, security equipment (including locks and alarms) or other protective installations, in good working order and activated. 2. If the situation is protected by a security alarm system (burglar alarm) the alarm must be in efficient working order and be activated at all times when the situation is unoccupied. 22. Fat frying warranty If there is a fat fryer at any of the situation(s) described in the schedule then you must comply with the following: 1. an automatic ‘over temperature’ device must be fitted to the fryer and maintained to prevent fire by overheating by isolating the power supply from the deep fat fryer; 2. during non working hours a close-fitting metal lid must be fitted to the deep fat fryer; during working hours it must be readily available to be used if required; 3. grease filters must be fitted in the flue venting and must be clean and free of any build-up of grease at all times; Page 29 of 31 4. an F rated extinguisher or other similar suitable extinguisher must be installed near the fryer and accessible in the event of a fire in the unit. The extinguisher/s must be serviced at least once a year and maintained in good working order. If a fire blanket is installed, it must be a minimum of 1.2m x 1.8m in size and staff should be trained in its use; 5. the fryer must have a master switch for the energy supply, which must be remote from the fryer and the switch must be in the ‘off’ position at the finish of each day’s operation and/or when the premises are unattended. The switch must be easily accessible at all times. 23. Reinstatement of amount of insurance In the event of a claim payment under this policy, and in the absence of written notice by us or you to the contrary, any amount of insurance cancelled by the payment will be automatically reinstated. You will not be required to pay any additional premium. 24. Salvage Where insured property suffers loss, we or anybody we appoint may, for reasonable purposes and in a reasonable manner: 1. enter any building where the loss has occurred and take and keep possession of the damaged property for purposes of investigations; 2. deal with the salvage in any reasonable manner; provided that: (a) you are not entitled to abandon any property to us; (b) we are not entitled to sell or otherwise dispose of salvaged branded goods without your prior consent. In the event of you declining to give consent, you will retain possession of the salvaged goods and their reasonable salvage value will be deducted from the amount of claim that would otherwise be payable. Where it is practical to remove brands, labels or other marks, which identify the goods as supplied by you, the salvage value of the goods will be determined after such removal at our expense. 25. Reinstatement Applicable to those items of insured property where it is stated in the schedule (RV) that this clause applies. In the event of any insured property to which this clause applies suffering loss, the basis on which the amount payable under this policy (or under each item of this policy if the property is described under separate items) is to be calculated will be the cost of reinstatement of that property. Insurance under this clause is subject to the special provisions set out below and is subject also to the terms and conditions of this policy except in so far as they are varied by this clause. Special Provision Compliance with Regulations The amount payable under this clause will include the cost incurred in reinstatement which is necessary to comply with any regulations, provided that the amount payable will not include any such cost: 1. to the extent to which the work had already been required of you by notice served prior to the happening of the loss; or 2. in respect of undamaged property or undamaged portions of property other than foundations (unless foundations are expressly excluded from insurance under this policy). This special provision will apply whether or not the undamaged property or portion comprises a separate building or structure or a separate item of plant or equipment. Page 30 of 31 Site of reinstatement Where property is destroyed, the work of reinstatement must be carried out on the same site; provided that the work may be carried out upon another site: 1. where reinstatement on the same site is not permissible by reason of any regulations; or 2. where reinstatement on the same site is not suitable to your reasonable requirements, in which case, and with our consent (which will not be unreasonably withheld), reinstatement may be carried out on any alternative site subject to our liability in respect of the cost of reinstatement not exceeding the cost which would have been incurred had reinstatement been carried out on the same site. Limitations on amount payable 1. Where the work of reinstatement is carried out in terms of the equivalent building definition (b) or (c), or on any location other than the original location at the same site, our liability in respect of the cost of reinstatement will not exceed the cost which would have been incurred had reinstatement been carried out in terms of definition (a) on the original location; 2. Where your property is damaged but not destroyed, our liability will not exceed the amount we could have been called upon to pay for reinstatement if the property had been destroyed; 3. Our liability under this clause in respect of any item of insured property will not exceed the sum insured in respect of that item. Circumstances where this clause does not apply No payment, beyond the amount which would have been payable had this clause not been incorporated in this policy, will be made: 1. if you elect not to reinstate the property; 2. if the work of reinstatement is not commenced and carried out with reasonable dispatch; 3. until the cost of reinstatement has been actually incurred; 4. where a building or structure 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. Where, by reason of any of these circumstances, no payment is to be made beyond the amount which would have been payable if this clause had not been incorporated in this policy, the rights and liabilities of you and us in respect of the loss will be the same as if this clause had not been incorporated this policy. Valuation of the property 1. If we require a valuation for any period of insurance, you must at your expense provide us with a certificate by a registered professional valuer approved by us specifying the estimated cost of reinstatement of any item or items of insured property to which this clause applies; 2. The certificate must also contain such other estimates and information as we may reasonably require; 3. The sum to be insured under this clause in respect of each item will not be less than the amount of the estimate specified in the certificate in respect of that item. Rates, tax and other charges The amount payable under this clause will not include the amount of any rate, tax, duty, development charge, or any other charge or assessment arising out of capital appreciation, which may be payable in respect of the property by reason of compliance with any regulations. 26. Excess We are not liable for the excess shown in the schedule for each event. Page 31 of 31 Zurich Australian Insurance Limited (incorporated in Australia) Trading as Zurich New Zealand ABN 13 000 296 640, AFS Licence No: 232507 Level 9, 29 Customs Street West, Auckland Central 1010 Client Enquiries Telephone: 0508 987 424 www.zurich.co.nz --- ## NZI — NZI Commercial Property Material Damage > _Markdown transcription of NZI NZI Commercial Property Material Damage policy wording, effective 2020-12-01. Source: https://www.insurancepartners.co.nz/site_files/24864/upload_files/NZISteadfastMaterialDamagePolicyWordingCSR-STE(12.2020)withendorsements2.2024(005).pdf?dl=1_ --- MATERIAL DAMAGE POLICY WORDING NZI/Steadfast Material Damage Wording CSR-STE – (12.2020) | 2 NZI/Steadfast Material Damage Policy Wording Contents Introduction ........................................................................................................................... 3 Insurance agreement .............................................................................................................. 4 What you are covered for ........................................................................................................ 4 Automatic policy extensions ..................................................................................................... 4 Optional policy extensions ..................................................................................................... 11 Exclusions ............................................................................................................................ 12 How we will pay ................................................................................................................... 17 What we will pay .................................................................................................................. 20 How to claim ........................................................................................................................ 22 General conditions ................................................................................................................ 24 Definitions ........................................................................................................................... 26 © 2019 Steadfast Group Limited NZI/Steadfast Material Damage Wording CSR-STE – (12.2020) | 3 Introduction Welcome Welcome to NZI. Thank you for selecting us as your insurer. About this policy Your Material Damage Policy consists of: 1. this policy document, and 2. the schedule, and 3. any endorsements or warranties that we apply, and 4. the information you have provided in the application. About Steadfast Steadfast NZ Ltd (Steadfast) is part of Steadfast Group Ltd, an Australian Stock Exchange listed company. It includes a network of insurance brokerages who operate in New Zealand as Steadfast Brokers. This policy is available exclusively to you through a Steadfast broker. Steadfast does not guarantee or underwrite this policy. Your duty of disclosure When you apply for insurance, you have a legal duty of disclosure. This means you or anyone acting on your behalf must tell us everything you know (or could be reasonably expected to know) that a prudent insurer would want to take into account in deciding: 1. to accept or decline your insurance, and/or 2. the cost or terms of the insurance, including the excess. You also have this duty every time your insurance renews and when you make any changes to it. If you or anyone acting on your behalf breaches this duty, we may treat this policy as being of no effect and to have never existed. Please ask us if you are not sure whether you need to tell us about something. Examples We have used examples and comments to make parts of this policy document easier to understand. These examples and comments are printed in italics and do not affect or limit the meaning of the section they refer to. Headings The headings in this policy document are for reference only and do not form part of it. They must not be used when interpreting the policy document. Defined words If a word is shown in bold, it has a specific meaning. There is a list of these words and what they mean at the back of this policy in the section ‘DEFINITIONS’. © 2019 Steadfast Group Limited NZI/Steadfast Material Damage Wording CSR-STE – (12.2020) | 4 Insurance agreement Our agreement You agree to pay us the premium and comply with this policy. In exchange, we agree to insure you as set out in this policy. What you are covered for Damage to insured property You are insured for any sudden and accidental loss to insured property at the situation. Automatic policy extensions In addition to the cover under ‘What You Are Covered For - Damage to Insured Property’ above, we also provide the following Automatic Policy Extensions. Unless expressly stated otherwise, any amounts payable under these Automatic Extensions are included within ‘What We Will Pay – Maximum Amount Payable’. They are not additional. Alternative residential accommodation If the insured property is a residential unit that is owned and occupied by you, or any of your directors or employees and it cannot be lived in due to sudden and accidental loss to the residential unit, where that loss: 1. is covered by this Material Damage Policy, or 2. would have been covered by this Material Damage Policy, but is covered by the EQC Act instead, then you are insured for the reasonable additional costs of temporary accommodation that is of a similar standard to the residential unit for: a) you, or any of your directors or employees, and b) your, or any of your director's or employee's, domestic pets. The most we will pay for any event is $25,000 per residential unit, (unless a different amount per residential unit is shown in the schedule) up to a total of the sum insured shown in the schedule for Alternative Residential Accommodation. However, in all cases we will not pay more than 12 months' rent for any event. Payment under this extension is in addition to ‘What We Will Pay - Maximum Amount Payable’. If you have alternative accommodation cover under any other policy with us, then the most we will pay under all policies in total per residential unit for any event is the highest applicable limit. © 2019 Steadfast Group Limited NZI/Steadfast Material Damage Wording CSR-STE – (12.2020) | 5 Burglary cover You are insured for sudden and accidental loss to insured property: 1. at the situation, or 2. during the period the insured property is covered by: (a) Automatic Policy Extension Temporary Removal Cover, or (b) Automatic Policy Extension Transit Cover, or (c) Automatic Policy Extension Unspecified Locations caused by theft or attempted theft: 1. accompanied by threat of violence, or actual violence, to any person, or 2. involving physical evidence of violent and forcible entry to, or exit from, an enclosed building (or part of an enclosed building), or 3. involving physical evidence of violent and forcible entry to, or exit from a securely locked motor vehicle or storage container, or 4. of a permanently attached part of the building by the forcible removal of it. If the loss is covered by one of the Automatic Policy Extensions referred to in 2 (a), (b) or (c) above, any sub-limit detailed in that extension also applies to the cover under this extension. Capital additions cover You are insured for: 1. sudden and accidental loss to a building or contents, located in New Zealand, that you acquire during the period of insurance, provided you own or are responsible for that property, and 2. appreciation in value of a building or contents that results solely from a physical: (a) alteration, or (b) addition, or (c) improvement, provided that you notify us within 90-days of you acquiring the property or the physical works being completed. Once you have notified us: 1. we may charge you additional premium, and 2. any increased value of the property will be added to your sum insured. The most we will pay under this extension during any annual period is: (a) 10% of the sum insured for the building and 10% of the sum insured for the contents, or (b) $100,000 in total for both, whichever is the lesser. Docks, piers, wharves and road bridges cover You are insured for sudden and accidental loss to docks, piers, wharves and road bridges owned by you at the situation. The most we will pay under this extension is $100,000 for any event at any one situation, unless a different amount for Docks, Piers, Wharves and Road Bridges is shown in the schedule. Electric motors cover You are insured for sudden and accidental loss to: 1. electric motors and starters not exceeding 10kw (13.4 hp), and 2. distribution switchboards and permanently installed electric reticulation, at the situation provided that the damage is fusion immediately preceded by: 1. the failure of electrical insulation, or 2. an identifiable abnormal electric current fluctuation from any power supply network, or 3. electrically induced self-heating. © 2019 Steadfast Group Limited NZI/Steadfast Material Damage Wording CSR-STE – (12.2020) | 6 Electronic data and software You are insured for the loss of electronic data and software resulting from electronic equipment that is insured by this policy suffering loss covered by this policy. Please also read ‘How We Will Pay: Basis of settlement: certain types of property- ‘Electronic Data’ and ‘Software’. Employee effects cover You are insured for sudden and accidental loss to the clothing, personal effects and tools of trade of your directors and employees (but not your contractors). We will cover this property as if it were contents, provided that: 1. the property is at the situation, or 2. the property is being worn, carried or used by your directors or employees while they are acting in the course of their directors' duties or employment, anywhere in New Zealand. The most we will pay under this extension: 1. is $5,000 for any event, per person, and 2. in total during the annual period is the sum insured shown in the schedule for contents. Expediting costs cover You are insured for the reasonable costs of express freight and overtime to expedite the repair or replacement of insured property following a loss covered under this policy. You must have our prior approval before incurring any costs. Our approval will be based on the economic benefit gained. Fire fighting equipment You are insured for the reasonable costs you incur to replenish your portable hand-held fire fighting equipment after the equipment has been used to protect your insured property from loss covered under this policy, or immediate and imminent threat of loss, provided that the loss would be covered under this policy if it did occur. The most we will pay under this extension in total during any annual period is $10,000. Hidden gradual damage You are insured for: 1. hidden gradual damage to any insured property that happens and that you discover during the period of insurance, and 2. any other part of any insured property that is not directly affected but must be removed, damaged or destroyed to locate the cause of the hidden gradual damage. The most we will pay during any annual period is: 1. $10,000 for each event, and 2. $30,000 for all events. Illegal substances You are insured for accidental loss to the building and contents shown in the schedule, arising from the chemical contamination caused by the manufacture, storage or distribution of any controlled drug as defined in the Misuse of Drugs Act 1975, if: (a) the building is tenanted, and (b) you or the person who manages the tenancy on your behalf has met the landlord obligations. The most we will pay under this extension is $50,000 in any annual period. © 2019 Steadfast Group Limited NZI/Steadfast Material Damage Wording CSR-STE – (12.2020) | 7 Infrastructure You are insured for sudden and accidental loss to 1. driveways, patios, footpaths, paving or landscaping, constructed or consisting of gravel or shingle, and 2. well or bore hole including its pump, lining or casing, and 3. artificial turf, swimming pools or tennis courts, that are owned by you at the situation. The most we will pay under this extension is $25,000 for any event at any one situation, unless a different amount for Infrastructure is shown in the schedule. Inventory You are insured for the costs reasonably incurred by you in taking an inventory to establish the value of lost or damaged insured property following a loss covered by this policy. Landslip and subsidence You are insured for sudden and accidental loss to insured property at the situation caused by landslip or subsidence. The most we will pay under this extension for any one situation in any annual period is $500,000 unless a different amount for Landslip and Subsidence is shown in the schedule. An excess of $10,000 applies for each event under this extension, unless a higher excess for Landslip and Subsidence is shown in the schedule. This extension does not include landslip or subsidence caused by earthquake, subterranean fire, volcanic activity, tsunami, geothermal activity, hydrothermal activity, or fire caused by any of these. Money cover You are insured for sudden and accidental loss of money, provided that the loss occurs in any of the circumstances outlined below: Money Section A 1. money in transit, or 2. money at the situation during business hours, or 3. money at the situation in a securely locked safe or strong room outside business hours. Money Section B 1. money at the situation outside business hours and not in a securely locked safe or strong room, or 2. money at residential premises occupied by you or any director, employee, or agent, authorised to have possession of the money. This extension does not provide cover for loss of money: 1. caused by errors in receiving it or paying it out, or 2. occurring while the money is entrusted to any person other than: (i) you or any director or executive officer of yours, or (ii) any employee or agent of yours, or (iii) any professional money carrier, or 3. resulting from payment of money in exchange for any cheque that is subsequently dishonoured, or 4. occurring while the money is in an unlocked and unoccupied vehicle, or 5. caused by theft or fraud by any of your employees, unless the loss is discovered within three consecutive business days of the act of theft or fraud, or 6. through electronic means. The most we will pay under this extension is: 1. $10,000 or the ‘Special Carry’ sum insured (during the months specified) for any event under Money Section A, and 2. $3,000 for any event under Money Section B, unless a different amount for Money Section A or Money Section B is shown in the schedule. © 2019 Steadfast Group Limited NZI/Steadfast Material Damage Wording CSR-STE – (12.2020) | 8 Payment under this extension is in addition to ‘What We Will Pay - Maximum Amount Payable’. Property under construction You are insured for sudden and accidental loss to any building and contents at the situation during the course of: 1. demolition, or 2. installation, construction or erection, or 3. testing and commissioning following 2. above, provided that: 1. the property is owned, will be owned or will be occupied by you, and 2. the completed value of contract works does not exceed: (a) 10% of the sum insured for the building and/or contents (whichever is/are relevant), or (b) $100,000, whichever is the lesser. Protection costs cover You are insured for reasonable costs you incur to temporarily protect insured property by preventing or minimising an imminent sudden and accidental loss, provided that the loss would be covered under this policy if it did occur. The most we will pay under this extension during the annual period is $100,000. Redundant foundations You are insured for undamaged foundations that are made redundant, where the insured property resting on them has been destroyed as a result of a loss covered by this policy. Where the redundant and undamaged foundations are not demolished, and the presence of them increases the market value of the site to which they are fixed, the amount of the market value increase will be deducted from the amount payable for your claim. Redundant plant and stock You are insured for any of the following provided it is also insured property: 1. stock rendered redundant as a result of loss covered by this policy to other insured property. 2. (a) plant which is interdependent with insured property, and/or (b) spare parts held exclusively for insured property, rendered redundant as a result of loss covered by this policy to its respective insured property in (a) or (b) above. Regardless of any Basis of Settlement shown in the schedule, we will only ever pay you the indemnity value of the redundant plant and/or spare parts. Refrigerated goods You are insured for: 1. damage to goods in refrigerated cabinets or chambers arising from accidental stoppage, damage, or malfunction of refrigerating plant. The words “goods in refrigerated cabinets or chambers” are deemed to include goods that are at the situation at the time of the event and that would, but for the event, have been placed in the refrigerated cabinets or chambers; and 2. expenses reasonably incurred to avoid or minimise the loss insured by 1. above by either transferring the threatened goods to alternative storage or by other means; provided that this extension does not cover damage due to the disconnection of the public electricity supply by the supply authority where notice of the disconnection has been given a minimum of 24 hours prior to the time of damage. © 2019 Steadfast Group Limited NZI/Steadfast Material Damage Wording CSR-STE – (12.2020) | 9 The most we will pay under this extension is $10,000 in total during the annual period, unless a different amount for Refrigerated Goods is shown in the schedule. Rewards cover You are insured for a reward that you offer and pay to successfully secure the return of insured property that suffers a loss, provided that: 1. the loss is covered under this policy, and 2. you have our prior approval to offer the reward. Social club cover You are insured for sudden and accidental loss to property and money of any: 1. social club, and/or 2. sports club or similar body, provided that the clubs’ activities are principally for the benefit of your employees. We will cover: 1. this property as if it were contents, and 2. money on the same basis as provided by Automatic Extension Money Cover. Stolen keys cover You are insured for the reasonable costs to: 1. open a safe or strong room, and 2. alter or replace locks, keys and combinations that give access to your insured property, provided that the costs are incurred because the keys or combinations are: 1. stolen, or 2. believed on reasonable grounds to have been duplicated without proper authority, during the period of insurance. The most we will pay under this extension during the annual period is $15,000 unless a different amount for Stolen Keys Cover is shown in the schedule. Temporary removal cover You are insured for sudden and accidental loss to contents while temporarily removed from the situation to another location within New Zealand [including while in transit].The most we will pay under this extension shall not exceed the amount which would have been recoverable had the loss occurred at the situation. Tenanted premises You are insured for sudden and accidental loss to: 1. glass, and 2. doors and windows, and 3. light fittings and power points, and 4. floor coverings, that are not owned by you at the situation, provided that you are responsible to arrange and bear the cost to repair them under the terms of your lease agreement. The most we will pay under this extension during the annual period is $20,000 unless a different amount for Tenanted Premises is shown in the schedule. © 2019 Steadfast Group Limited NZI/Steadfast Material Damage Wording CSR-STE – (12.2020) | 10 Theft cover You are insured for sudden and accidental loss to insured property caused by theft occurring: 1. at the situation, and 2. when the insured property is covered by: (a) Automatic Policy Extension Temporary Removal Cover, or (b) Automatic Policy Extension Transit Cover, or (c) Automatic Policy Extension Unspecified Locations. No cover is provided under this extension for theft from any motor vehicle, or part of any motor vehicle, that is not securely locked. If the loss is covered by one of the Automatic Policy Extensions referred to in 2 (b) or (c) above, any sub- limit detailed in that extension also applies to the cover under this extension. An excess of $2,500 applies for each event under this extension, unless a higher excess for Theft Cover is shown in the schedule. Transit cover You are insured for sudden and accidental loss to contents and/or stock during any transit beginning and ending within New Zealand. We will include your liability for general average and salvage charges where the contract of carriage or governing law and practice make you liable for such payments. No cover is provided under this extension for: (a) contents while temporarily removed, or (b) contents and/or stock otherwise insured. The most we will pay under this extension is: $25,000 in total for any event, unless a different amount for Transit Cover is shown in the schedule. Unharmed property cover You are insured for the reasonable cost to: 1. damage, demolish or remove, and 2. subsequently repair, replace or reassemble, insured property that has not suffered loss, if this action becomes necessary to repair or replace insured property that has suffered a loss which is covered by this policy. We will pay these costs provided that they are not being incurred solely to comply with any regulations. Unspecified locations You are insured for sudden and accidental loss to contents and/or stock while situated at any unspecified location in New Zealand away from the situation. This extension does not apply to: 1. contents and/or stock that are temporarily removed, and 2. any portable electronic equipment, and 3. any portable tools of trade. The most we will pay under this extension is: 1. $50,000 for any event, or 2. the sum insured for contents and/or stock, whichever is the lesser, unless a different amount for Unspecified Locations is shown in the schedule. © 2019 Steadfast Group Limited NZI/Steadfast Material Damage Wording CSR-STE – (12.2020) | 11 Optional policy extensions These optional extensions only apply where specified in the schedule. Unless stated otherwise, Optional Extensions are included within ‘What We Will Pay - Maximum Amount Payable’. They are not additional. Machinery breakdown You are insured for machinery breakdown of any machine that has (i) a pre-breakdown value not greater than $25,000, or (ii) the amount shown in the schedule. Basis of Settlement applying to this Optional Policy Extension 1. If the machine is repairable, we will pay you for the cost of restoring the machine to its state of serviceability before the loss occurred. 2. If the machine is destroyed we will pay you for: (i) the replacement cost of the machine at the time of its replacement provided that the machine was less than 10 years old at the time of the machinery breakdown and the machine is replaced within a reasonable time, otherwise (ii) the indemnity value of the machine at the time of the machinery breakdown. Exclusions applying to this Optional Policy Extension This Optional Policy Extension does not insure: a. any of the following parts of the machine: belts, ropes, wires, chains, tyres, dies, exchangeable tools, engraved cylinders, glass components, porcelain components, ceramics, refractories, felts, sieves, fabrics, jointing, packaging and operating media; or b. wasting or wearing out of any part caused by the ordinary use or working, gradual deterioration of the part; or c. damage due to cavitation scratching of painted or polished surfaces; or d. loss to a vehicle that has either plant or machinery attached to it, or is primarily designed as mobile plant or mobile machinery; or e. against damage resulting from experiments, overload or similar tests, requiring the imposition of abnormal conditions; or f. damage due to faults or defects that you knew of. Natural disaster cover You are insured for natural disaster damage to insured property. The excesses shown in the schedule will apply to the aggregate of: 1. all natural disaster damage claims under this policy, and 2. all natural disaster damage claims under the business interruption policy (if applicable), arising from any one event at each common site as shown in the schedule. Where the insured property that suffers natural disaster damage has been temporarily removed, the site sum insured excess applicable will be that of the insured property’s original situation. Where insured property is covered wholly or in part by the EQC Act, the following apply: 1. What we will pay if EQC Cover applies If EQC Cover applies: (a) this policy only pays in excess of the maximum cover under the EQC Act, and (b) the most we will pay for loss to insured property from any event is the difference between your EQC entitlement (whether or not that is actually paid to you) and the Maximum Amount Payable under this policy for that loss. 2. Excess The natural disaster damage excess is reduced by any payment made by the Earthquake Commission except for payments for land. © 2019 Steadfast Group Limited NZI/Steadfast Material Damage Wording CSR-STE – (12.2020) | 12 Seasonal stock adjustments Where stock has suffered a loss covered by the policy, the maximum amount payable for stock is increased by the percentage shown in the schedule (as ‘Seasonal Stock Increase’), for the months of October, November and December, unless another period for the Seasonal Stock Increase is shown in the schedule. Payment under this extension is in addition to ‘What We Will Pay –Maximum Amount Payable’. Sustainable rebuilding costs You are insured for the reasonable costs you incur to upgrade the building with sustainable products following a loss covered by this policy, provided that: 1. the building is destroyed, and 2. the ‘Basis of Settlement – Reinstatement’ applies to the building, and 3. you replace the building, and 4. the sustainable products are first approved by us. The most we will pay under this extension for any event is: 1. 5% of the actual cost to replace the building, or 2. $250,000 in total, whichever is the lesser, unless a different amount for Sustainable Rebuilding Costs is shown in the schedule. Payment under this extension is in addition to ‘What We Will Pay –Maximum Amount Payable’. Exclusions Types of property not covered This policy does not insure: 1. any insured property during: (a) demolition, or (b) installation, construction or erection, or (c) testing and commissioning following 1. (b) above, other than cover provided by Automatic Policy Extension Property under Construction. 2. jewellery, precious stones, furs, precious metals or bullion, except if any of these items are: (a) stock of your business, or a component of any plant or machinery that is insured under this policy as contents. 3. any of the following (including plant attaching to, or accessories in or on any of them): (a) any vehicle or trailer that is required to be registered or licensed to travel on a public road, (b) any mechanically or electrically propelled vehicles (including railway locomotives and rolling stock), (c) watercraft of any kind, (d) aircraft of any kind, except if any of these items are stock of your business, and at the time of the loss they are at the situation and are: (i) stationary, or (ii) not in operation, or (iii) not being used. 4. any of the following property: (a) standing timber or growing crops, © 2019 Steadfast Group Limited NZI/Steadfast Material Damage Wording CSR-STE – (12.2020) | 13 (b) live plants including any trees, shrubs, hedges or grass, other than those forming part of landscaping, (c) livestock, (d) any living creature, (e) dams, canals, or reservoirs, (f) road bridges or road tunnels, (g) railways, railway bridges or railway tunnels, (h) docks, piers, or wharves, (i) mining property located below ground level, (j) any land, earth or fill (including topsoil and backfill), (k) driveways, patios, footpaths, paving or landscaping, constructed or consisting of gravel or shingle, (l) transmission and distribution lines not located at the situation, (m) well or bore hole including its pump, lining or casing, (n) artificial turf, swimming pools or tennis courts, (o) property located outside New Zealand, other than 1. cover provided by (i) Automatic Policy Extension Docks, Piers, Wharves and Road Bridges Cover, or (ii) Automatic Policy Extension Infrastructure, or 2. if the item of property is specifically listed in the schedule as being insured. 5. money, other than cover provided by Automatic Policy Extension Money Cover. 6. insured property that is in transit away from the situation, other than cover provided by: (a) Automatic Policy Extension Money Cover, (b) Automatic Policy Extension Temporary Removal Cover, (c) Automatic Policy Extension Transit Cover. Losses not covered This policy does not insure: 1. any of the following types of damage to insured property: (a) slowly developing deformation or distortion, (b) marring or scratching, (c) gradual deterioration, (d) rot or mildew, (e) wear and tear, corrosion or rust. This exclusion does not apply to cover provided by Automatic Policy Extension – Hidden Gradual Damage. 2. loss immediately preceded by any of the following: (a) interruption of the supply of water, gas, electricity, or any fuel to the situation, other than cover provided by Automatic Policy Extension Refrigerated Goods, (b) total or partial stoppage of work, or interruption or cessation of any process, (c) a change in artificially controlled temperature or atmosphere, other than cover provided by Automatic Policy Extension Refrigerated Goods. 3. loss caused by or arising from any of the following: (a) action of micro-organisms, vermin or pests, (b) action of light, or inherent nature of the property (including shrinkage, evaporation, loss of weight, change of flavour or colour or texture or finish), (c) fumes, gas, dust, smoke or soot, (d) maintenance of insured property including servicing, cleaning and subsequent testing, (e) spontaneous combustion, (f) spontaneous fermentation. © 2019 Steadfast Group Limited NZI/Steadfast Material Damage Wording CSR-STE – (12.2020) | 14 This exclusion only applies to the insured property, or to the part of the insured property (as applicable), directly affected. It does not apply to any resultant sudden and accidental loss to separate insured property, or to other parts of the same insured property (as applicable). 4. loss that is: (a) only evidenced by an unexplained disappearance, (b) only revealed by the taking of an inventory, (c) due to clerical or accounting errors. 5. loss caused by any of the following: (a) theft or attempted theft, other than cover provided by: (i) Automatic Policy Extension Money Cover, (ii) Automatic Policy Extension Stolen Keys Cover, (iii) Automatic Policy Extension Theft Cover, (b) any fraudulent scheme or device, or false pretence practised on you or any other person, (c) theft, attempted theft or fraud by you or an employee of yours other than cover provided by Automatic Policy Extension Money Cover. 6. loss following any of these events: (a) exposure to weather conditions if the property is not designed to be left in the open (unless reasonable precautions have been taken to protect the property from those conditions), (b) landslip or subsidence, other than cover provided by Automatic Policy Extension Landslip and Subsidence and Optional Extension Natural Disaster Cover, (c) erosion or expansion of the ground, (d) normal settlement, normal shrinkage or expansion of buildings, foundations, walls, pavements, roads and other structural improvements. (e) settling, warping or cracking caused by earth or other movements, other than cover provided by Optional Policy Extension Natural Disaster Cover. Building defects This policy does not insure loss in connection with a building or structure being affected by: 1. moisture or water build-up or the penetration of external moisture or water, or 2. the action or effects of mould, fungi, mildew, rot, decay, gradual deterioration, micro-organisms, bacteria, protozoa, or any similar or like forms, that is caused directly or indirectly by: 1. non-compliance with the New Zealand Building Code, or 2. faulty design or faulty specification, including but not limited to faulty sequence, procedure or programme, or 3. faulty materials, or 4. faulty workmanship, when the building or structure was constructed, manufactured, altered, repaired, renovated or maintained. This exclusion does not apply to loss that is caused by or directly arises from the leakage of internal pipes, internal water reticulation systems or internal cisterns. Confiscation This policy does not insure loss in connection with confiscation, nationalisation, requisition or destruction of, or damage to property by order of government, public or local authority (unless the order is given to control any immediate and imminent threat of loss provided that the loss would be covered by this policy if it did occur). © 2019 Steadfast Group Limited NZI/Steadfast Material Damage Wording CSR-STE – (12.2020) | 15 Consequential financial loss This policy does not insure any kind of consequential financial loss (e.g. financial loss that occurs as a direct or indirect result of the loss of insured property), including the following: 1. delays, 2. loss of market, 3. penalties, 4. rates, taxes, duties, development charges, 5. other charges or assessments arising out of capital appreciation, that are payable to comply with any regulations, 6. Loss of use of any property. This exclusion does not apply to cover provided by: (a) Automatic Policy Extension Expediting Costs Cover, (b) Automatic Policy Extension Redundant Foundations, (c) Automatic Policy Extension Redundant Plant and Stock. (d) Automatic Policy Extension Alternative Residential Accommodation. Costs not insured This policy does not insure the cost of: 1. repairing or replacing faulty materials, or 2. fixing faulty workmanship, or 3. fixing any work performed to a faulty: (a) design plan, or (b) design specification, or 4. altering or modifying any part of any refrigeration or air conditioning plant to enable the plant to operate with a more ozone friendly refrigerant. This exclusion does not apply to any resultant sudden and accidental loss to separate insured property or to other parts of the same insured property arising from the above. Damage to machinery This policy does not insure any machinery breakdown of a machine. This does not apply: (a) where sudden and accidental loss covered under this policy (or that would have been covered if the property was insured under this policy) occurs completely outside the machine resulting in the machinery breakdown occurring. However, this proviso does not apply to machinery breakdown resulting directly or indirectly from any: (i) error in: setting, programming or operating the machine, or (ii) stock or part of the machine being drawn into the machine, or (iii) failure to service or maintain the machine correctly, or (b) to resultant sudden and accidental loss to other parts of the machine that is not machinery breakdown, or (c) to the cover provided by Automatic Policy Extension Electric Motors Cover, or (d) to the cover provided by Automatic Policy Extension Refrigerated Goods, or (e) to the cover provided under Optional Policy Extension Machinery Breakdown. Damage to boilers and pressure vessels This policy does not insure the cost of repairing or replacing any part of a boiler or pressure vessel that suffers loss through: 1. explosion, overheating, rupture, bursting or collapse (but not pressure caused by chemical explosion), or 2. cracking or leaking. This exclusion does not apply to any resultant sudden and accidental loss to other parts of the boiler or pressure vessel arising from the above. © 2019 Steadfast Group Limited NZI/Steadfast Material Damage Wording CSR-STE – (12.2020) | 16 Electronic data and software This policy does not insure loss to electronic data and software, from any cause whatsoever including, but not limited to, a computer virus. This includes loss of use, reduction in functionality or any other associated loss or expense in connection with electronic data and software. This exclusion does not apply to: 1. any sudden and accidental loss to other parts of the insured property, that occurs as a result of the loss to electronic data and software, or 2. cover provided by Automatic Policy Extension Electronic Data and Software. Infectious diseases This policy does not insure loss in connection with any: 1. notifiable infectious disease under the Health Act 1956, and/or 2. notifiable disease under the Biosecurity Act 1993. Natural disaster This policy does not insure natural disaster damage other than cover provided by Optional Policy Extension Natural Disaster Cover. Nuclear This policy does not insure any loss in connection with: 1. ionising radiation or contamination by radioactivity from: (a) any nuclear fuel, or (b) any nuclear waste from the combustion or fission of nuclear fuel. 2. nuclear weapons material. Production processes This policy does not insure loss to insured property while undergoing any production process where any part of that production process (including any accidental modification of the process), causes or contributes towards the loss in any way. Sanctions We will not pay any claim when the payment would contravene: 1. any sanction, prohibition, or restriction under United Nations resolutions, or 2. the trade or economic sanctions, laws or regulations of New Zealand, Australia, United Kingdom, the United States of America or the European Union. Seepage, pollution and contamination This policy does not insure loss in connection with seepage, pollution or contamination. This exclusion does not apply: 1. if the seepage, pollution or contamination results from sudden and accidental loss to insured property, which is otherwise covered under this policy, or 2. to the cover provided by Automatic Extension Illegal Substances. © 2019 Steadfast Group Limited NZI/Steadfast Material Damage Wording CSR-STE – (12.2020) | 17 Terrorism This policy does not insure any loss in connection with an act of terrorism, including in connection with controlling, preventing, suppressing, retaliating against, or responding to an act of terrorism. War This policy does not insure any loss in connection with any of the following, including controlling, preventing or suppressing any of the following: War, invasion, act of foreign enemy, hostilities or war like 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. How we will pay Basis of settlement: reinstatement Where the schedule shows any item(s) of insured property are insured for reinstatement, we will indemnify you as follows: 1. where insured property is lost or destroyed: by paying you the cost to replace the insured property to a condition substantially the same as its condition when new, or 2. where insured property is physically damaged but not lost or destroyed: by paying you the cost to repair the loss to the damaged part of the insured property to a standard that is reasonably equivalent to its condition and relative quality when new, but without necessarily reproducing it exactly. Circumstances Where Reinstatement Does Not Apply ‘How We Will Pay –Basis of Settlement: Indemnity’ will apply in the following circumstances, regardless of any basis of settlement shown in the schedule to the contrary: 1. if you do not repair or replace the loss to the insured property, or 2. repair or replacement of the loss to the insured property is not started within a reasonable period of time, or 3. until the actual costs of repair or replacement of the loss to the insured property are incurred, or 4. if the insured property is awaiting demolition or disposal at the time of the loss, or 5. either of the following apply: (a) repair or replacement of the damaged, lost or destroyed insured property is not permissible under any regulations, or (b) repair or replacement of the damaged, lost or destroyed insured property is not permissible because of the undamaged portion of the property. Basis of settlement: indemnity Where the schedule shows any item(s) of insured property are insured for indemnity, we will indemnify you using whichever of the following options we choose: 1. where insured property is lost or destroyed: pay you the cost to replace the insured property with property of a similar condition, age and specification, as it was in, immediately prior to the loss, or 2. where insured property is physically damaged but not destroyed: pay you the cost to repair the loss to the damaged part of the insured property, as nearly as possible, to the condition it was in immediately prior to the loss, or 3. pay you an amount equal to the indemnity value of the damaged part of the insured property. © 2019 Steadfast Group Limited NZI/Steadfast Material Damage Wording CSR-STE – (12.2020) | 18 Additional costs you are covered for Where insured property has suffered a loss covered by this policy, then included in ‘What We Will Pay - Maximum Amount Payable’ for the insured property are: Costs of Compliance Necessary and reasonable costs incurred in complying with regulations in order to repair or replace loss to the damaged, lost or destroyed part of insured property, except costs incurred: 1. for work that you have already been ordered to carry out, or 2. solely for the purpose of seismically strengthening the insured property to a performance level greater than its performance level before the loss. We will repair your building to the same structural performance level it had before the loss. 3. in connection with undamaged property, or undamaged parts of property. This applies even if the undamaged property comprises a separate building, structure or item of plant or equipment. Demolition Costs Necessary and reasonable costs incurred to: 1. demolish or dismantle insured property, and/or 2. temporarily shore or prop insured property, and/or 3. remove debris from the situation (including any kind of solid, liquid or gas), and/or 4. clear, clean and repair gutters, drains and the like, and/or 5. recover, defend, safeguard, remove, temporarily store, and return insured property, whether damaged or undamaged, and/or 6. temporarily repair and secure insured property to make it comply with safety rules and regulations suitable for continued use, provided that the costs arise from a loss covered by this policy. Where any costs are in connection with the removal of asbestos, the maximum we will pay for any event is: (a) 5% of the site sum insured, or (b) $25,000, whichever is the lesser. Fees and Other Costs Necessary and reasonable costs incurred for: 1. architect’s, engineer’s, surveyor’s, building consultant’s fees, and/or 2. consents and associated legal fees, and/or 3. training consultants and IT technicians, to repair or replace the damaged, lost or destroyed insured property following a loss covered by this policy. Claims Preparation Costs Necessary and reasonable costs incurred to assess or prepare a claim following a loss covered by this policy. You are not insured for any costs incurred to investigate or negotiate a claim made under this policy. The most we will pay for any event is $25,000. Location of replacement Where we pay to replace damaged, lost or destroyed insured property, you may choose to replace the property at: 1. the situation, or 2. any alternative site that you provide in New Zealand. Where you choose to use an alternative site we will not pay more than the cost to replace the damaged, lost or destroyed insured property at the situation in accordance with the terms of this policy. © 2019 Steadfast Group Limited NZI/Steadfast Material Damage Wording CSR-STE – (12.2020) | 19 Method of repair or replacement We will pay the reasonable cost to repair or replace insured property based on current industry accepted building materials and construction methods. Basis of settlement: certain types of property The method of indemnity for the following types of insured property will be as follows, regardless of any basis of settlement shown in the schedule to the contrary. Stock For loss to stock that is not customers’ goods, we will indemnify you by using one of the following methods: 1. for raw materials, supplies and other merchandise not manufactured by you: (a) the replacement cost at the time of replacement, provided that the replacement is carried out within a reasonable period of time, or (b) if this property is not replaced, the market value of it at the time and place of the loss. 2. for materials in the process of manufacture: the replacement cost of the raw materials and the cost of labour and other overhead charges expended at the time of the loss. 3. for finished goods: the replacement cost of the raw materials and the cost of labour and other overhead charges expended before any allowance for profit, or the cost of re-stocking these goods, whichever is the lesser. For loss to stock that is customers’ goods, we will at our option pay: 1. the indemnity value of the customers’ goods, or 2. the cost to repair the customers’ goods, as near as reasonably possible, to the condition they were in immediately prior to the loss. Works of Art For loss to a work of art, we will at our option pay: 1. the indemnity value of the work of art, or 2. the cost to repair the work of art, as near as reasonably possible, to the condition it was in immediately prior to the loss. Electronic Data For loss to 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, nor 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. Software For loss to software, we will pay the reasonable cost of, restoring, re-setting or re-programming the software that is necessary to operate any electronic equipment or machine insured under this policy. Portable electronic equipment For loss to portable electronic equipment more than 3 years old we will at our option pay: 1. the indemnity value of the portable electronic equipment, or 2. the cost to repair the portable electronic equipment, as near as reasonably possible, to the condition it was in immediately prior to the loss. © 2019 Steadfast Group Limited NZI/Steadfast Material Damage Wording CSR-STE – (12.2020) | 20 Limited Lifetime construction materials For loss to: 1. cladding, roofing or skylights, where they are made of plastic, polycarbonate, acrylic or PVC materials, and/or 2. any textile awnings or shade sails, we will at our option pay: (a) the indemnity value of the materials, or (b) the cost to repair the materials, as near as reasonably possible, to the condition they were in immediately prior to the loss. The indemnity value of the materials will be depreciated over the lifetime of the product based upon the manufacturer’s UV rating. Office Equipment Upgrade For loss to office equipment, we will pay the cost for you to replace the equipment with an alternative model(s) of office equipment, provided that: 1. the alternative model has more energy-efficient features, and 2. the alternative model has otherwise comparable features and capabilities, and 3. the office equipment is destroyed, and we approve the upgrade. What we will pay Maximum amount payable 1. The most we will pay in total during an annual period for a building (or group of buildings) at a specified location in the schedule is the corresponding sum insured noted in the schedule for that building (or group of buildings). 2. The most we will pay in total during an annual period for contents is the corresponding sum insured for contents in the schedule. If there is a separate sum insured for contents at a specified location, the most we will pay during an annual period for contents at that location is the corresponding sum insured for that location in the schedule. 3. The most we will pay in total during an annual period for stock is the corresponding sum insured for stock in the schedule. If there is a separate sum insured for stock at a specified location, the most we will pay during an annual period for stock at that location is the corresponding sum insured for that location in the schedule. 4. The most we will pay in total during an annual period for any other item of insured property that is individually specified in the schedule with a corresponding sum insured is that sum insured. However, the most we will pay for all insured property in total during an annual period is the Total Sum Insured shown in the schedule, subject always to clauses ’Increased Maximum Amount Payable’, ‘Reinstatement Of Sum Insured Once Repaired’ and ‘Sum Insured Adjustment On Renewal For Unrepaired Items’. Increased maximum amount payable The amount referred to in ‘What We Will Pay - Maximum Amount Payable’ is increased as follows: The most we will pay in total during an annual period: 1. for all contents at a situation shown in the schedule is the sum insured for contents at that situation plus: (a) 10%, or (b) $100,000, whichever is the lesser. 2. for all stock at a situation shown in the schedule is the sum insured for stock at that situation plus: (a) 10%, or (b) $100,000, © 2019 Steadfast Group Limited NZI/Steadfast Material Damage Wording CSR-STE – (12.2020) | 21 whichever is the lesser. Provided that: 1. these increases for contents and stock do not apply to cover provided by Optional Policy Extension Natural Disaster Cover, and 2. the most we will pay in total during an annual period at all situations for all contents and all stock remains unchanged. Reinstatement of sum insured once repaired Following a loss for which a claim is payable under this policy, the sum insured for the item of insured property that suffered the loss is reduced by the amount of the loss. The sum insured will only be reinstated as follows: If the insured property: 1. is automatically covered under this policy during its repair or replacement, the amount reduced will be progressively added back to the sum insured at the rate that the insured property that suffered the loss is progressively repaired or replaced. 2. is not automatically covered under this policy during its repair or replacement, the amount reduced will only be added back to the sum insured once the repair or replacement of the insured property that suffered the loss has been completed. The sum insured will not reinstate following natural disaster damage unless we have agreed to the reinstatement in writing. We may ask you to pay an additional premium for any reinstatement of the sum insured. Sum insured adjustment on renewal for unrepaired items The sum insured for any item of insured property that has suffered loss in any previous annual period and that has not been repaired or replaced at the start of the current annual period is: 1. the maximum amount payable for that item, less 2. the estimated cost of remedying the existing unrepaired or unreplaced loss. The sum insured will only be reinstated to its pre-loss level as per the conditions outlined under ‘Reinstatement of sum insured once repaired’ (1.) and (2.). The sum insured will not reinstate following any claim arising from natural disaster damage unless we have agreed to the reinstatement in writing. We may ask you to pay an additional premium for any reinstatement of the sum insured. Sub limits If any sub limit in this policy is higher than the maximum amount payable for the applicable insured property as shown in the schedule, the sub limit does not apply and the most we will pay is the maximum amount payable. Items of insured property with limited cover The amount we will pay for some items of insured property is limited as follows: Customers’ goods The most we will pay for customers’ goods in total during an annual period is $20,000 unless a different amount for customers’ goods is shown in the schedule. Site Improvements The most we will pay for site improvements at the site in total during any annual period is: 1. 10% of the maximum amount payable for building(s) at that site, or 2. $500,000, whichever is the lesser, unless a different amount for site improvements is shown in the schedule. © 2019 Steadfast Group Limited NZI/Steadfast Material Damage Wording CSR-STE – (12.2020) | 22 Landscaping The most we will pay for landscaping at the site in total during any annual period is: 1. 5% of the maximum amount payable for building(s) at that site, or 2. $50,000, whichever is the lesser, unless a different amount for landscaping is shown in the schedule. Works of Art The most we will pay for any individual work of art for any event is $25,000 unless a different amount for that work of art is shown in the schedule. Excess The applicable excess shown in this Material Damage Policy will be deducted from the amount payable for each event. Where an event occurs over a period of more than 72 consecutive hours, one excess will be deducted for every 72 consecutive hour period. One excess If a single event causes sudden and accidental loss to tangible property that you insure with us under this or any other policy only one excess will apply being the highest applicable individual policy excess. This does not apply to natural disaster damage. GST Where GST is recoverable by us under the Goods and Services Tax Act 1985: 1. all sums insured exclude GST, and 2. all sub limits exclude GST, and 3. all excesses include GST, and GST will be added, where applicable, to claim payments. How to claim What you must do If anything happens that may lead to a claim under this policy, you must: 1. do what you can to take care of the insured property to prevent any further loss, expense or liability, and 2. tell us as soon as possible, and 3. notify the police as soon as possible if you think any loss was caused by an illegal act, and 4. allow us to examine the insured property before any repairs are started, and 5. not destroy or dispose of anything that is or could be part of a claim, and 6. send to us as soon as possible anything you receive from anyone about a claim or possible claim against you, and 7. give us any information or help that we ask for, and 8. consent to your personal information, in connection with the claim, being: (a) disclosed to us, and (b) transferred to the Insurance Claims Register Limited. © 2019 Steadfast Group Limited NZI/Steadfast Material Damage Wording CSR-STE – (12.2020) | 23 What you must obtain our agreement to do You must obtain our agreement before you: 1. incur any expenses in connection with any claim under this policy, or 2. negotiate, pay, settle, admit or deny any claim against you, or 3. do anything that may prejudice our rights of recovery. Dishonesty If your claim is dishonest or fraudulent in any way, we may: 1. decline your claim either in whole or in part, and/or 2. declare either this policy or all insurance you have with us to be of no effect and to no longer exist from the date of the dishonest or fraudulent act. This is at our sole discretion. Actions we may take 1. Subrogation Once we have accepted any part of your claim under this policy, we may assume your legal right of recovery. If we initiate a recovery we will include your excess, and any other uninsured losses suffered by you. Where we do this, you agree to pay your proportional share of the recovery costs, and subsequently the proceeds of the recovery will be shared on the same proportional basis, except that we will reimburse your excess first. You must fully co-operate with any recovery process. If you do not, we may recover from you the amount paid in relation to the claim. 2. Recoveries If any property that we have paid a claim for is later found or recovered, you must tell us immediately and hand it over to us if we request it. We have the right to keep any property that we have paid a claim for under this policy, including any proceeds if it is sold. 3. Reparation If any person is ordered to make reparation to you for loss to any property that we have paid a claim under this policy for, then you must tell us. Any payments received, must first reimburse our claims payment up to the amount of any reparation received. 4. Branded Stock For salvage that is branded goods or merchandise, we will not dispose of these items by sale unless you agree. If you do not agree, the value of the salvage will be deducted from any claim payment. Mutually acceptable assessors Where we appoint any loss adjuster, assessor, surveyor, valuer or investigator to any claim under this policy, the appointee must be mutually acceptable to both us and you. © 2019 Steadfast Group Limited NZI/Steadfast Material Damage Wording CSR-STE – (12.2020) | 24 General conditions How we will administer this policy 1. Cancellation BY YOU You may cancel this policy at any time by notifying us. If you do, we will refund any premium that is due to you based on the unused portion of the period of insurance. You must pay any outstanding premium due for the used portion of the period of insurance. BY US We may cancel this policy by giving you or your broker notice in writing or by electronic means at your or your broker’s last known address. Your policy will be cancelled from 4pm on the 30th day after the date of the notice. We will refund you any premium that is due to you based on the unused portion of the period of insurance. 2. Change of Terms We may change the terms of this policy (including the excess) by giving you or your broker notice in writing or by electronic means at your or your broker’s last known address. Unless otherwise specified in this policy the change in terms will take effect from 4pm on the 30th day after the date of the notice. 3. Other Insurance You must notify us as soon as you know of any other insurance policy that covers you for any of the risks covered under this policy. This policy does not cover your loss at all if it is insured to any extent under any other insurance policy. We will not contribute towards any claim under any other insurance policy. This does not apply to cover provided by Automatic Policy Extension Employee Effects Cover or Automatic Policy Extension Tenanted Premises, or to cover for customers’ goods. 4. Interests of Other Parties If we are advised of any party having a financial interest over your insured property, we may pay part or all of any valid claim proceeds to that party to the extent of their interest. This will form part of our obligations to you under this policy. You consent to us transferring your relevant personal information to that party. Any party, who is recorded as having a financial interest under this policy, is not covered by this policy and does not have rights to claim under this policy. 5. Separate Insurance If more than one person or entity is named as ‘Insured’ in the schedule, then all the parties are insured separately (as though a separate policy had been issued to each person/entity). However, the sum insured and any sublimit in this policy will apply to the aggregate of all amounts payable to all insureds for any event. 6. Premium Payment Options If you choose to pay the premium other than annually, then: (a) you must pay by direct debit using the Deduction Authority we require, and (b) this policy is for the initial period of insurance stating on the ‘From’ date and ending on the ‘To’ date stated in the schedule. The policy will be renewed for further monthly or quarterly periods of insurance (as indicated in the schedule) by payment of each premium due under the Deduction Authority. 7. Premium Adjustments If the premium for this policy has been calculated based on estimated figures, then the premium is only a provisional premium for the annual period. Within 3 months of the expiry of the annual period, you must tell us what the actual figures are. We will re-calculate your actual premium based on the actual figures. The difference between the actual and the provisional premiums will either be payable to us or refunded to you depending on the outcome of the adjustment, but any refund will be limited to a maximum of 50% of the provisional premium. © 2019 Steadfast Group Limited NZI/Steadfast Material Damage Wording CSR-STE – (12.2020) | 25 8. Stock Declarations Where stock is insured on a Stock Declaration basis, the premium charged on the item stock is provisional and represents 75% of the full premium payable for that item. At the end of each annual period we will adjust it as follows: 1. you must give us a declaration of the actual value of the stock you held on the last business day of each month for the annual period. This must be received by us within six weeks from the end date of the annual period, 2. if a monthly declaration exceeds the sum insured then we will adjust it back to the sum insured for the purpose of calculating your stock averages, 3. if no declaration is received for any one month, the stock sum insured will apply for that month, 4. the average of the monthly declarations will be calculated at the end of the annual period and the final premium payable will be based on the greater of: (a) that average, or (b) one half of the sum insured on stock, 5. we will re-calculate your actual premium based on the actual figures. The difference between the actual and the provisional premiums will either be payable to us or refunded to you depending upon the outcome of the adjustment, but any refund will be limited to a maximum of 50% of the provisional premium. Laws and acts that govern this policy 1. Governing Law and Jurisdiction The law of New Zealand applies to this policy and the New Zealand Courts have exclusive jurisdiction. 2. Legislation Changes Any reference to any Act of Parliament or subordinate rules referred to in this policy included any amendments made or substitutions to that law. 3. Currency Any amounts shown in this policy and in the schedule are in New Zealand dollars. Your obligations 1. Breach of Any Condition If: 1. you, or 2. any other person or entity we cover under this policy, or 3. anyone acting on your behalf, breaches any of the terms and/or conditions of this policy, we may: (a) decline your claim either in whole or in part, and/or (b) declare either this policy or any or all insurance you have with us to be of no effect and to no longer exist. The insurance provided by this policy will not be invalidated or prejudiced by reason of any breach of Warranty or Condition of this policy where the breach occurs without your knowledge and consent. Provided that notice is given to us as soon as practicable once you become aware of any such breach and you agree to pay an appropriate additional premium if required. 2. True Statements and Answers True statements and answers must be given, whether by you or any other person, when you: (a) apply for this insurance, and/or (b) notify us regarding any change in circumstances, and/or (c) make any claim under this policy and provide any further communication regarding the claim. 3. Reasonable Care You must take reasonable care at all times to avoid circumstances that could result in a claim. Your claim will not be covered if you are reckless or grossly irresponsible. © 2019 Steadfast Group Limited NZI/Steadfast Material Damage Wording CSR-STE – (12.2020) | 26 4. Change in Circumstances You must notify us immediately if, after we have accepted your application for this policy, there is a material: 1. increase in the risk covered, or 2. alteration of the risk covered. We may change the terms of this policy in response to any material change in circumstances you or anyone else advises us of. The change in terms will be effective from the date of the change in circumstances. Information is ‘material’ where we would have made different decisions about either: (a) accepting your insurance, or (b) setting the terms of your insurance, if we had known that information. If in any doubt, notify us anyway. The ‘risk covered’ refers to both: (a) the actual property or liabilities insured, and (b) you or other persons covered by this policy. Repairs or reinstatement by the insured We will allow you to undertake any repair or replacement work in relation to the loss covered under this policy and due allowance shall be made for a reasonable margin of profit provided that: 1. we are satisfied you have the required qualifications and capability to undertake such work, and 2. your charges and/or costs are competitive. Renewal terms If we intend to refuse renewal of this policy, or to offer renewal on any terms less favourable to you than those applying during the current period of insurance, we must give you notice of that intention. The notice must be received by you not less than 30 days before the expiry of the current period of insurance. If the notice is not received by that time we will, if so required by you, extend the current period of insurance so that it will expire not less than 30 days after the notice is received by you. You undertake to pay a pro-rata proportion of the annual premium for the period of any extension. Waiver of recovery This policy will not be invalidated or prejudiced by reason of you: 1. having waived any right of recovery or indemnity you may have against any: (a) party to a contract or agreement with you in the ordinary course of business, provided the contract or agreement is not for the supply of goods or services by you and the waiver was made in writing before the loss occurred, or (b) related company forming part of a group of related companies of which you are a member. For the purpose of this General Condition, ‘related company’ has the same meaning as the definition of those words in the Companies Act 1993, or (c) other party provided that the waiver is made and has been declared to and accepted by us, or 2. having to release from liability any party in accordance with any legislative or regulatory requirement. Definitions The definitions apply to the plural and any derivatives of the bolded words. For example, the definition of ‘accidental’ also applies to the words ‘accidentally’, ‘accident’ and ‘accidents’. © 2019 Steadfast Group Limited NZI/Steadfast Material Damage Wording CSR-STE – (12.2020) | 27 Accidental Unexpected and unintended by you. Act of terrorism Includes any act, or preparation in respect of action, or threat of action designed to influence or coerce the government de jure or de facto of any nation or any political division thereof, or in pursuit of political, religious, ideological, or similar purposes to intimidate the public or a section of the public of any nation 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) de jure or de facto, and that: (a) involves violence against one or more persons, or (b) involves damage to property, or (c) endangers life other than that of the person committing the action, or (d) creates a risk to health or safety of the public or a section of the public, or (e) is designed to interfere with or disrupt an electronic system. Annual period The period of insurance. However, if: (a) you pay the premium monthly, or (b) the period of insurance is for more than 12 months, the annual period is the current 12-month period calculated consecutively from the date this policy first started. Application The information provided by you to us when you purchased this insurance or requested a quotation for this insurance from us. It also includes any subsequent information you provide us with. Building Any of the following: (a) any building, (b) underground and above ground services directly associated with the building, (c) permanent fixtures and fittings at the building(s), including but not limited to signs, sprinkler systems, wired alarm systems, and wired security cameras, (d) site improvements, (e) landscaping, provided that the property is: (a) owned by you (including joint ownership with others), and (b) located at the situation at the start of the period of insurance. Business days The days your business usually operates. Business hours The hours that: (a) you or any director or manager of yours, or (b) any of your employees who are entrusted with the care, custody or control of money, © 2019 Steadfast Group Limited NZI/Steadfast Material Damage Wording CSR-STE – (12.2020) | 28 are on your business premises for the purpose of your business. Business interruption policy The insurance policy, that we call the Business Interruption Policy, that you have with us that covers the financial interruption or interference with your business operations. Common site A common physical location where the insured property is linked to achieve a common business purpose at that location. 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, which 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 Any of the following used in connection with your business: (a) machinery, plant, tools and chattels, (b) business fixtures, fittings and furnishings, (c) if you are a tenant, tenant's improvements to the leased building of any type, (d) any other property (other than a building) of a similar nature, provided that: • they are owned by you (including joint ownership with others), or • they are leased, hired or borrowed by you. Contents do not include stock or employee’s property. Customers’ goods Property, other than a building, that: (a) is owned by your customers, and (b) is in your temporary possession or temporary legal control in the course of your business activities. Customers’ goods do not include contents. Destroyed So physically damaged by an insured loss that the property, by reason only of that loss, cannot be repaired or the cost of repair is uneconomic. Electronic data Facts, concepts and information converted to a form useable for communications, display, distribution, interpretation or processing by electronic or electromechanical data processing or electronically controlled equipment. EQC act Earthquake Commission Act 1993 and any Act in substitution of that Act. © 2019 Steadfast Group Limited NZI/Steadfast Material Damage Wording CSR-STE – (12.2020) | 29 EQC entitlement An amount payable to you or for your benefit by the Earthquake Commission as a result of loss to the insured property; and any amount that would have been payable but for: 1. the application of an excess under the EQC Act, 2. a failure by you to correctly notify a claim to the Earthquake Commission within the time required under the EQC Act, 3. a decision by the Earthquake Commission to decline a claim or limit its liability for that loss in whole or in part and for any reason whatsoever, any act or omission on your part, the part of your agent, or the part of the Earthquake Commission. Event Any one event or series of events arising from one source or original cause. Fusion The process of fusing or melting together of windings or wiring following damage to the insulating material as a result of overheating. Hidden gradual damage Hidden rot, hidden mildew or hidden gradual deterioration, caused by water leaking from any internal: 1. tank that is plumbed into the water reticulation system of the building and is permanently used to store water, or 2. water pipe, or 3. waste disposal pipe, installed at the building. Immediately preceded by The event occurring in sequence immediately prior to the loss. If there is a chain of events, this will be the last event occurring immediately prior to the loss. Insured property Tangible property shown in the schedule within the following categories: (a) buildings, and (b) contents, and (c) stock, and (d) any other tangible property listed. For the avoidance of doubt, electronic data and software is deemed to be tangible property. Landlord’s obligations You or the person who manages the insured property on your behalf must: (a) exercise reasonable care in the selection of tenant(s) 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(s), 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 live plants, trees, shrubs, hedges or grass including rock work, paving and ornamentation used to adorn or improve the grounds at the situation, except if any of these items are stock of your © 2019 Steadfast Group Limited NZI/Steadfast Material Damage Wording CSR-STE – (12.2020) | 30 business. Loss Physical loss or physical damage occurring during the period of insurance. Machine Any equipment or device or contrivance that: (a) converts and directs motion or energy, and/or (b) performs any electronic process, including any protective component connected with that device or contrivance. Machinery breakdown 1. any mechanical, hydraulic, electrical or electronic: (a) breakdown or failure, or (b) cessation of function, or (c) malfunction, or (d) derangement, or 2. fusion of any nature. Money Any of the following, where they are associated solely with your business operations: (a) current coin, bank and currency notes, (b) cheques and travellers' cheques, (c) bank drafts and money orders, (d) phone cards, (e) unused postage and revenue stamps, (f) credit card vouchers, redeemable vouchers and tokens, (g) franking machine credits, (h) other tangible negotiable instruments. For example, promissory notes or bills of exchange. Natural disaster damage Sudden and accidental loss that results directly or indirectly from earthquake, subterranean fire, volcanic activity, tsunami, geothermal activity, hydrothermal activity, or fire caused by any of these. Office equipment Any of the following office equipment: desktop or laptop computers, fax machines, computer and video monitors, printers, document scanners, refrigerators and dishwashers. Pre 1935 building risks Where: (a) the building is, or (b) the contents and/or stock are located in any building, or part of a building, originally constructed prior to 1935. Period of insurance The period shown in the schedule, that specifies the start and end dates of this insurance contract. © 2019 Steadfast Group Limited NZI/Steadfast Material Damage Wording CSR-STE – (12.2020) | 31 Portable electronic equipment Cell phones, video data projectors, digital cameras, other audio visual equipment, portable computing devices and portable data storage devices. Pre-breakdown value The new installed replacement value of the machine. Pressure vessel The parts of any insured property or vessel that during ordinary use are subjected to either generated fluid pressure or vacuum, including: (a) all integral parts, and (b) controls, and (c) systems (other than systems forming part of a building or structure). Production process Any process of producing, making, treating or servicing goods. Refrigerated stock Perishable goods and/or their containers/packaging that are kept in a refrigerated storage chamber at the situation. Region The areas of land in each of the named Regions and Districts as defined in the Local Government New Zealand (LGNZ) Regional and Districts boundaries map. Regulations Building regulations or other regulations that are: (a) made under, or (b) framed pursuant to, any Act of Parliament or any local authority regulation or by-law. Residential unit Each self-contained part of the building designated for separate residential occupancy. Schedule The latest version of the schedule we issued to you for this policy. Site Any parcel of land that you own or occupy. Site improvements Site improvements are: (a) footpaths, driveways, car parks, site roads, and yards, of permanent construction, © 2019 Steadfast Group Limited NZI/Steadfast Material Damage Wording CSR-STE – (12.2020) | 32 (b) permanently sited water storage tank, septic tank or heating oil tank, (c) retaining walls, (d) gates, fences. Site sum insured The total sum insured for all insured property located at each common site under this policy and any other material damage policy held with us. Situation The location or locations referred to in the schedule. Software Programs, procedures and routines associated with the operation of electronic or electromagnetic data processing or electronically controlled equipment including any operating system. Stock Any of the following: 1. Stock and materials in trade provided that are: (a) owned by you (including joint ownership with others), or (b) in your temporary possession in the course of your business activities. 2. Customers’ goods. Storage container Any fully enclosed: (a) shipping container or similar, or (b) portable shed or similar structure, or (c) non-portable container, such as a metal or wooden container that has been built into or secured to a vehicle. Sustainable products Sustainable products are: (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. Sustainable products do not include the following: (a) fire protection devices or systems, (b) security devices or systems, (c) natural hazard protection. Examples of sustainable products include the following: • double glazing, • solar water heating systems, • environmentally friendly timber, • environmentally friendly paints and/or carpets, • rainwater collection tanks and/or water efficient interior plumbing, • natural lighting and/or ventilation, • ‘Best Practice’ insulation (as recommended by Standards New Zealand), • Energy Star-rated electrical equipment and/or interior lighting systems, © 2019 Steadfast Group Limited NZI/Steadfast Material Damage Wording CSR-STE – (12.2020) | 33 • Energy Star-qualified roof materials, • facilities to encourage the use of alternative transport (e.g. bicycle storage), • wind turbines. Temporarily removed Contents that: (a) you have removed from their original location for a particular purpose, and (b) you intend to return it to their original location, once that purpose has been served. Tenant The party renting the building(s) from you. Undamaged Not directly or physically damaged by an event that would be covered by this policy. We NZI, a business division of IAG New Zealand Limited. We may also use the words ‘us’, ‘our’ or ‘company’ to describe NZI. Work of art An object of artistic or cultural value including but not limited to pictures, paintings, prints, sculptures or ornaments, hand woven carpets, rugs or mat You The person(s) or entity named in the schedule as ‘Insured’ and any subsidiary company, more than half the nominal value of whose equity share capital is owned by the named Insured either directly or through other subsidiaries; and any entity over which an Insured exercises management control. We may also use the word ‘insured’ to describe you. © 2019 Steadfast Group Limited Sanctions Exclusion Policy Endorsement This policy is amended as follows: This Sanctions exclusion applies despite anything to the contrary in the policy or any endorsement. This policy is deemed not to provide any cover, and no payment will be made or benefit provided, to the extent that the provision of such cover, payment, or benefit may breach or risk exposure to any: 1. sanction, prohibition or restriction under United Nations resolutions; or 2. trade or economic sanction, law or regulation of New Zealand, Australia, the United Kingdom, the United States of America or the European Union. Any equivalent clause applying to the policy is superseded by the Sanctions exclusion above. An equivalent clause may exclude, restrict, or deny cover, payments, services and/or benefits due to any sanction, prohibition, penalty, or restriction of any United Nations resolution, or the trade or economic sanctions, laws, or regulations of any country, and/or the European Union. Page 1 of 1 / NZ7428/1 07/23 NZI, a business division of IAG New Zealand Limited. Communicable Disease Exclusion – Material Damage and Business Interruption Policy Endorsement Your Material Damage/Business Assets and Business Interruption Policy is amended as follows: Notwithstanding any provision to the contrary in this policy or any other endorsement thereto: This policy does not cover any loss, damage, liability, claim, cost or expense directly or indirectly caused by, contributed to by, resulting from, arising out of or in connection with any: 1. Communicable Disease; 2. notifiable organism or disease under the Biosecurity Act 1993; 3. fear or threat (actual or perceived) or action taken to control or prevent or suppress any of the diseases, conditions or circumstances described in this exclusion. Subject to the other terms, conditions and exclusions of this policy, this exclusion will not apply to physical damage to property insured or any Time Element Loss directly resulting therefrom where such physical damage is directly caused by or arising from any of the following perils: fire, lightning, explosion, aircraft or vehicle impact, falling objects, windstorm, rainstorm, hail, tornado, cyclone, typhoon, hurricane, landslip, earthquake, seismic and/or volcanic activity, tsunami, flood, freeze, weight of snow or ice, avalanche, meteor/asteroid impact, riot, riot attending a strike, civil commotion, vandalism, malicious mischief. Definitions Communicable Disease means any disease which can be transmitted by means of any substance or agent from any organism to another organism where: (a) the substance or agent includes, but is not limited to, a virus, bacterium, parasite or other organism or any variation thereof, whether deemed living or not, and (b) the method of transmission, whether direct or indirect, includes, but is not limited to, airborne transmission, bodily fluid transmission, transmission from or to any surface or object, solid, liquid or gas or between organisms, and (c) the disease, substance or agent can cause or threaten damage to human health or human welfare or can cause or threaten damage to, deterioration of, loss of value of, marketability of or loss of use of property. Time Element Loss means business interruption, contingent business interruption or other consequential losses covered by the policy. Page 1 / NZ7195/2 01/21 Cyber Exclusion – Material Damage and Business Interruption Policy Endorsement Your Material Damage/Business Assets and Business Interruption Policy is amended as follows: Notwithstanding any provision to the contrary in this policy or any other endorsement thereto: This policy does not cover any loss, damage, liability, claim, cost or expense directly or indirectly caused by, contributed to by, resulting from, arising out of, or in connection with any: 1. Cyber Act or Cyber Incident, including any action taken in controlling, preventing, suppressing or remediating any Cyber Act or Cyber Incident; or 2. loss of use, reduction in functionality, repair, replacement, restoration or reproduction of any Data, including any amount relating to the value of such Data. Subject to the other terms, conditions and exclusions of this policy, exclusion (1.) shall not apply to physical loss or physical damage to insured property or any Time Element Loss directly resulting therefrom where such physical loss or damage is directly caused by any of the following: (a) theft or forcible entry; (b) storm, windstorm, hail, tornado, cyclone, hurricane; (c) fire, lightning or explosion; (d) earthquake, volcano activity or tsunami; (e) flood, freeze or weight of snow; (f) aircraft impact or vehicle impact or falling objects; (g) water damage; (h) loss of or damage to refrigerated goods due to a change in temperature. Provided that there is no cover where such loss, damage or Time Element Loss is directly or indirectly caused by, contributed to by, resulting from or arising out of or in connection with a Cyber Act. Definitions Cyber Act means an unauthorised, malicious or criminal act or series of related unauthorised, malicious or criminal acts, or the threat or hoax thereof involving access to, processing of, use of or operation of any Computer System. Cyber Incident means: (a) any error or omission or series of related errors or omissions involving access to, processing of, use of or operation of any Computer System; or (b) any partial or total unavailability or failure or series of related partial or total unavailability or failures to access, process, use or operate any Computer System. Computer System means any computer, hardware, software, communications system, electronic device (including, but not limited to, smart phone, laptop, tablet, wearable device), server, cloud or microcontroller and including any similar system or configuration of the aforementioned and including any associated input, output, data storage device, networking equipment or back up facility. Data means information, facts, concepts, code or any other information of any kind that is recorded or transmitted in a form to be used, accessed, processed, transmitted or stored by a Computer System. Time Element Loss means business interruption, contingent business interruption or other consequential losses covered by the policy. Page 1 / NZ7194/2 01/21 Defective Repair and Replacement Work Exclusion Policy Endorsement Your policy is amended by the addition of the following exclusion: This exclusion applies despite anything to the contrary in the policy or in any endorsement. Defective Repair and Replacement Work This policy does not insure the costs of putting right defective workmanship or design in any repair or replacement work covered by the policy. This exclusion applies to the property or part immediately affected as well as any property or parts that need to be demolished, replaced or reinstalled or otherwise made good in order to rectify the defective work or design. This exclusion does not apply to any resultant sudden and accidental physical loss or damage to separate insured property arising from the above. NZ8053/2 02/24 / Page 1 of 1 --- ## QBE — QBE Material Damage & Business Interruption > _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. --- ## AIG — AIG Steadfast Material Damage > _Markdown transcription of AIG AIG Steadfast Material Damage policy wording, effective 2026-05-26. Source: https://www.baileysinsurance.co.nz/images/documentation/AIG-Steadfast-Material-Damage-Policy-Wording-62016.pdf_ --- # MATERIAL DAMAGE POLICY Steadfast Material Damage Wording (6.2016), underwritten by AIG ## INTRODUCTION ### WELCOME Thank you for choosing the Steadfast Material Damage Policy Wording, underwritten by AIG. ### INSURER The insurer for this policy is AIG Insurance New Zealand Ltd and will be referred to throughout as "we", "us", "our" or "company" as defined. ### ABOUT THIS POLICY Your Material Damage Policy consists of: 1. this policy document, and 2. the schedule, and 3. any endorsements or warranties that we apply, and 4. the information you have provided in the application. ### YOUR DUTY OF DISCLOSURE When you apply for insurance, you have a legal duty of disclosure. This means you or anyone acting on your behalf must tell us everything you know (or could be reasonably expected to know) that a prudent insurer would want to take into account in deciding: 1. to accept or decline your insurance, and/or 2. the cost or terms of the insurance, including the excess. You also have this duty every time your insurance renews and when you make any changes to it. If you or anyone acting on your behalf breaches this duty, we may treat this policy as being of no effect and to have never existed. Please ask us if you are not sure whether you need to tell us about something. ### EXAMPLES We have used examples and comments to make parts of this policy document easier to understand. These examples and comments are printed in italics and do not affect or limit the meaning of the section they refer to. ### HEADINGS The headings in this policy document are for reference only and do not form part of it. They must not be used when interpreting the policy document. ### DEFINED WORDS If a word is shown in bold, it has a specific meaning. There is a list of these words and what they mean at the back of this policy in the section 'DEFINITIONS'. ## INSURANCE AGREEMENT ### OUR AGREEMENT You agree to pay us the premium and comply with this policy. In exchange, we agree to insure you as set out in this policy. ## WHAT YOU ARE COVERED FOR ### DAMAGE TO INSURED PROPERTY You are insured for any sudden and accidental loss to insured property at the situation. ## AUTOMATIC POLICY EXTENSIONS In addition to the cover under 'What You Are Covered For - Damage to Insured Property' above, we also provide the following Automatic Policy Extensions. Unless expressly stated otherwise, any amounts payable under these Automatic Extensions are included within 'What We Will Pay – A. Maximum Amount Payable'. They are not additional. ### A. ALTERNATIVE RESIDENTIAL ACCOMMODATION If the insured property is a residential unit that is owned and occupied by you, or any of your directors or employees and it cannot be lived in due to sudden and accidental loss to the residential unit, where that loss: 1. is covered by this Material Damage Policy, or 2. would have been covered by this Material Damage Policy, but is covered by the EQC Act instead, then you are insured for the reasonable additional costs of temporary accommodation that is of a similar standard to the residential unit for: a) you, or any of your directors or employees, and b) your, or any of your director's or employee's, domestic pets. The most we will pay for any event is $25,000 per residential unit, (unless a different amount per residential unit is shown in the schedule) up to a total of the sum insured shown in the schedule for Alternative Accommodation. However, in all cases we will not pay more than 12 months' rent for any event. Payment under this extension is in addition to 'What We Will Pay - A. Maximum Amount Payable'. If you have alternative accommodation cover under any other policy with us, then the most we will pay under all policies in total per residential unit for any event is the highest applicable limit. ### B. BURGLARY COVER You are insured for sudden and accidental loss to insured property: 1. at the situation, or 2. during the period the insured property is covered by: (a) Automatic Policy Extension Q. Portable Electronic Equipment, or (b) Automatic Policy Extension AA. Temporary Removal Cover, or (c) Automatic Policy Extension DD. Transit Cover, or (d) Automatic Policy Extension FF. Unspecified Locations caused by theft or attempted theft: 1. accompanied by threat of violence, or actual violence, to any person, or 2. involving physical evidence of violent and forcible entry to, or exit from, an enclosed building (or part of an enclosed building), or 3. involving physical evidence of violent and forcible entry to, or exit from a securely locked motor vehicle or storage container, or 4. of a permanently attached part of the building by the forcible removal of it. If the loss occurs during the period the insured property is covered by one of the Automatic Policy Extensions referred to in 2 (a), (b), (c) or (d) above, any sub-limit detailed in that extension also applies to the cover under this extension. ### C. CAPITAL ADDITIONS COVER You are insured for: 1. sudden and accidental loss to a building or contents, located in New Zealand, that you acquire during the period of insurance, provided you own or are responsible for that property, and 2. appreciation in value of a building or contents that results solely from a physical: (a) alteration, or (b) addition, or (c) improvement, provided that you notify us within 90-days of you acquiring the property or the physical works being completed. Once you have notified us: 1. we may charge you additional premium, and 2. any increased value of the property will be added to your sum insured. The most we will pay under this extension during any annual period is: (a) 10% of the sum insured for the building and 10% of the sum insured for the contents, or (b) $100,000 in total for both, whichever is the lesser. ### D. DOCKS, PIERS, WHARVES AND ROAD BRIDGES You are insured for accidental loss to docks, piers, wharves or road bridges owned by you that form part of your insured property and are at the situation shown in the schedule, subject to a combined limit of $100,000 at any one situation, unless specified for a greater amount in the schedule. Policy Exclusions A – Types of Property Not Covered - 4 (f) road bridges and 4 (h) do not apply to this Automatic Policy Extension. ### E. ELECTRIC MOTORS COVER You are insured for sudden and accidental loss to: 1. electric motors and starters not exceeding 5kw (6.7 hp), and 2. distribution switchboards and permanently installed electric reticulation, at the situation provided that the damage is fusion immediately preceded by: 1. the failure of electrical insulation, or 2. an identifiable abnormal electric current fluctuation from any power supply network, or 3. electrically induced self-heating. ### F. ELECTRONIC DATA AND SOFTWARE You are insured for the loss of electronic data and software resulting from electronic equipment insured by this policy suffering sudden and accidental loss covered by this policy. Please also read 'How We Will Pay: Basis of settlement: certain types of property- 'Electronic Data' and 'Software'. ### G. EMPLOYEE EFFECTS COVER You are insured for sudden and accidental loss to the clothing, personal effects and tools of trade of your directors and employees (but not your contractors). We will cover this property as if it were contents, provided that: 1. the property is at the situation, or 2. the property is being worn, carried or used by your directors or employees while they are acting in the course of their directors' duties or employment, anywhere in New Zealand. The most we will pay under this extension: 1. is $5,000 for any event, per person, and 2. in total during the annual period is the sum insured shown in the schedule for contents. ### H. EXPEDITING COSTS COVER You are insured for the reasonable costs of express freight and overtime to expedite the repair or replacement of insured property following a loss covered under this policy. You must have our prior approval before incurring any costs. Our approval will be based on the economic benefit gained. ### I. FIRE FIGHTING EQUIPMENT You are insured for the reasonable costs you incur to replenish your portable hand-held fire fighting equipment after the equipment has been used to protect your insured property from loss covered under this policy, or immediate and imminent threat of loss, provided that the loss would be covered under this policy if it did occur. The most we will pay under this extension in total during any annual period is $5,000. ### J. HAZARDOUS SUBSTANCE EMERGENCY You are insured for any charge the New Zealand Fire Service is authorised to impose on you in respect of any Hazardous Substance Emergency at the situation during the period of insurance. We will pay these costs where there is loss covered under this policy, or where there is an immediate and imminent threat of loss, that would be covered under this policy if it did occur. 'Hazardous Substance Emergency' is as defined in the Fire Service Act 1975. The most we will pay under this extension is $50,000 for any event. ### K. HIDDEN GRADUAL DAMAGE You are insured for: 1. hidden gradual damage that happens and that you discover during the period of insurance, and 2. any other part of any insured property that is not directly affected but must be removed, damaged or destroyed to locate the cause of the hidden gradual damage, provided that we have first given our permission. The most we will pay during an annual period is: (a) $10,000 for each event, and (b) $30,000 for all events. ### L. ILLEGAL SUBSTANCES You are insured for accidental loss to the building and or contents within the building shown in the schedule, in connection with the manufacture, storage or distribution of any controlled drug as defined in the Misuse of Drugs Act 1975, if: (a) the building is tenanted, and (b) you or the person who manages the tenancy on your behalf has met the landlord obligations. The most we will pay under this extension is $50,000 any one event, up to a maximum of $250,000 in the period of insurance. However for accidental loss resulting from fire or explosion the most we will pay is the sum insured declared in the schedule. For the purpose of this extension "landlords obligations" means you or person who manages the insured property on your behalf must: (a) exercise reasonable care in the selection of tenant(s) 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(s), and (c) keep a written record of the outcome of each inspection, and provide a copy to us if a copy is requested. ### M. INVENTORY You are insured for the costs reasonably incurred by you in taking an inventory to establish the value of lost or damaged insured property following a loss covered by this policy. ### N. LANDSLIP AND SUBSIDENCE You are insured for sudden and accidental loss to insured property at the situation caused by landslip or subsidence. The most we will pay under this extension for any one situation in any annual period is $250,000 unless a different amount for Landslip and Subsidence is shown in the schedule. An excess of $10,000 applies for each event under this extension, unless a higher excess for Landslip and Subsidence is shown in the schedule. This extension does not include landslip or subsidence caused by earthquake, subterranean fire, volcanic activity, tsunami, geothermal activity, hydrothermal activity, or fire caused by any of these. ### O. MACHINERY BREAKDOWN 1. You are insured for accidental loss of any machine from mechanical or electrical breakdown, derangement or failure; and any boiler or pressure vessel that contains steam or water; refrigerating or air conditioning vessels, their piping and accessory equipment. The most we will pay under this extension is $100,000 any one event. If you have Business Interruption insurance with us, this automatic extension insures you under that policy following a loss that is covered by this automatic extension, or would have been but for the application of the policy excess. 2. The most we will pay for Business Interruption following Machinery Breakdown is $100,000 any one event. For the sake of clarity, this figure is in addition to 1. above. This extension does not provide cover for loss to lighting or heating elements, fuses or protective devices, or electrical contacts where sparking or arcing occurs as part of its normal function. For the purpose of this extension the following definitions apply: **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. **breakdown** The actual stopping or failing of the machine due solely to internal stress or a fault in the machinery whilst in use and not by any cause external to the affected machine. **accidental loss** does not include: i. depletion, deterioration, corrosion or erosion of material; ii. wear and tear; iii. leakage at any valve, fitting, shaft seal, gland packing, joint or connection; iv. vibration or misalignment; v. the breakdown of any structure o foundation supporting the object or any part thereof; vi. the functioning of any safety device or protective device; or vii. the cracking of any part of a gas turbine exposed to the products of combustion. ### P. MONEY COVER You are insured for sudden and accidental loss of money, provided that the loss occurs in any of the circumstances outlined below: **Money Section A** 1. money in transit, or 2. money at the situation during business hours, or 3. money at the situation in a securely locked safe or strong room outside business hours. **Money Section B** 1. money at the situation outside business hours and not in a securely locked safe or strong room, or 2. money at residential premises occupied by you or any director, employee, or agent, authorised to have possession of the money. This extension does not provide cover for loss of money: 1. caused by errors in receiving it or paying it out, or 2. occurring while the money is entrusted to any person other than: (a) you or any director or executive officer of yours, or (b) any employee or agent of yours, or (c) any professional money carrier, or 3. resulting from payment of money in exchange for any cheque that is subsequently dishonoured, or 4. occurring while the money is in an unlocked and unoccupied vehicle, or 5. caused by theft or fraud by any of your employees, unless the loss is discovered within three consecutive business days of the act of theft or fraud, or 6. through electronic means. The most we will pay under this extension is: 1. $10,000 or the 'Special Carry' sum insured (during the months specified) for any event under Money Section A, and 2. $2,500 for any event under Money Section B, unless a different amount for Money Section A or Money Section B is shown in the schedule. Payment under this extension is in addition to 'What We Will Pay - A. Maximum Amount Payable'. ### Q. PORTABLE ELECTRONIC EQUIPMENT COVER You are insured for accidental loss to portable electronic equipment, while away from the situation and whilst in transit and located anywhere in the world. The most we will pay under this extension is: 1. $7,500 for any one item of portable electronic equipment, and 2. $25,000 in total for any one event. An excess of $1,000 applies for each event under this extension, unless a different amount is shown in the schedule. ### R. PROPERTY UNDER CONSTRUCTION You are insured for sudden and accidental loss to any building and contents at the situation during the course of: 1. demolition, or 2. installation, construction or erection, or 3. testing and commissioning following 2. above, provided that: 1. the property is owned, will be owned or will be occupied by you, and 2. the completed value of contract works does not exceed $100,000. ### S. PROTECTION COSTS COVER You are insured for reasonable costs you incur to temporarily protect insured property by preventing or minimising an imminent sudden and accidental loss, provided that the loss would be covered under this policy if it did occur. The most we will pay under this extension is $100,000 any one event. ### T. REDUNDANT FOUNDATIONS You are insured for undamaged foundations that are made redundant, where the insured property resting on them has been destroyed as a result of a loss covered by this policy. Where the redundant and undamaged foundations are not demolished, and the presence of them increases the market value of the site to which they are fixed, the amount of the market value increase will be deducted from the amount payable for your claim. ### U. REDUNDANT PLANT AND STOCK You are insured for any of the following provided it is also insured property: 1. stock rendered redundant as a result of loss covered by this policy to other insured property. 2. (a) plant which is interdependent with insured property, and/or (b) spare parts held exclusively for insured property, rendered redundant as a result of loss covered by this policy to its respective insured property in (a) or (b) above. Regardless of any Basis of Settlement shown in the schedule, we will only ever pay you the indemnity value of the redundant plant and/or spare parts. ### V. REFRIGERATED GOODS You are insured for: 1. damage to goods in refrigerated cabinets or chambers arising from accidental stoppage, damage, or malfunction of refrigerating plant. The words "goods in refrigerated cabinets or chambers" are deemed to include goods that are at the situation at the time of the event and that would, but for the event, have been placed in the refrigerated cabinets or chambers; and 2. expenses reasonably incurred to avoid or minimise the loss insured by 1. above by either transferring the threatened goods to alternative storage or by other means; provided that this extension does not cover damage due to the disconnection of the public electricity supply by the supply authority where prior notice of the disconnection has been given at the time of damage. The most we will pay under this extension is $7,500 for any one event unless a different amount for Refrigerated Goods is shown in the schedule. ### W. REWARDS COVER You are insured for a reward that you offer and pay to successfully secure the return of insured property that suffers a loss, provided that: 1. the loss is covered under this policy, and 2. you have our prior approval to offer the reward. ### X. SOCIAL CLUB COVER You are insured for sudden and accidental loss to property and money of any: 1. social club, and/or 2. sports club or similar body, provided that the clubs' activities are principally for the benefit of your employees. We will cover: 1. this property as if it were contents, and 2. money on the same basis as provided by Automatic Extension M: Money Cover. ### Y. STOLEN OR LOST KEYS COVER You are insured for the reasonable costs to: 1. open a safe or strong room, and 2. alter or replace locks, keys and combinations that give access to your insured property, provided that the costs are incurred because the keys or combinations are: 1. stolen, lost, or 2. believed on reasonable grounds to have been duplicated without proper authority, during the period of insurance. ### Z. SUSTAINABLE REBUILDING COSTS You are insured for the reasonable costs you incur to upgrade the building with sustainable products following a loss covered by this policy, provided that: 1. the building is destroyed, and 2. the 'Basis of Settlement – Reinstatement' applies to the building, and 3. you replace the building, and 4. the sustainable products are first approved by us. The most we will pay under this extension for any event is: 1. 5% of the actual cost to replace the building, or 2. $250,000 in total, whichever is the lesser, unless a different amount for Sustainable Rebuilding Costs is shown in the schedule. Payment under this extension is included within the building sum insured. Refer to 'What We Will Pay – A. Maximum Amount Payable'. ### AA. TEMPORARY REMOVAL COVER You are insured for sudden and accidental loss to contents while temporarily removed from the situation to another location within New Zealand [including while in transit]. The most we will pay under this extension for portable tools of trade is: 1. $5,000 for any one item including its standard accessories, and 2. $25,000 in total for any event. ### BB. TENANTED PREMISES You are insured for sudden and accidental loss to: 1. glass, and 2. doors and windows, and 3. light fittings and power points, and 4. floor coverings, that are not owned by you at the situation, provided that: 1. you are responsible to arrange and bear the cost to repair them under the terms of your lease agreement, and 2. the provisions of sections 268 to 272 of the Property Law Act 2007 (or any relevant amendments) do not release you from this responsibility. ### CC. THEFT COVER You are insured for sudden and accidental loss to insured property caused by theft occurring: 1. at the situation, and 2. when the insured property is covered by: (a) Automatic Policy Extension Q. Portable Electronic Equipment, or (b) Automatic Policy Extension AA. Temporary Removal Cover, or (c) Automatic Policy Extension DD. Transit Cover, or (d) Automatic Policy Extension FF. Unspecified Locations. An excess of $2,500 applies for each event under this extension, unless a higher excess for Theft Cover is shown in the schedule. ### DD. TRANSIT COVER You are insured for sudden and accidental loss to contents and/or stock during any transit beginning and ending within New Zealand. We will include your liability for general average and salvage charges where the contract of carriage or governing law and practice make you liable for such payments. No cover is provided under this extension for: (a) contents while temporarily removed, or (b) contents and/or stock otherwise insured, or (c) portable electronic equipment. The most we will pay under this extension is: 1. $5,000 any one portable tool of trade, including their standard accessories, and 2. $25,000 in total for any event, unless a different amount for Transit Cover is shown in the schedule. ### EE. UNHARMED PROPERTY COVER You are insured for the reasonable cost to: 1. damage, demolish or remove, and 2. subsequently repair, replace or reassemble, insured property that has not suffered loss, if this action becomes necessary to repair or replace insured property that has suffered a loss which is covered by this policy. We will pay these costs provided that they are not being incurred solely to comply with any regulations. ### FF. UNSPECIFIED LOCATIONS You are insured for sudden and accidental loss to contents and/or stock while situated at any unspecified location in New Zealand away from the situation. This extension does not apply to: 1. contents and/or stock that are temporarily removed, and 2. any portable electronic equipment, and 3. any portable tools of trade. The most we will pay under this extension is: 1. $50,000 for any event, or 2. the sum insured for contents and/or stock, whichever is the lesser, unless a different amount for Unspecified Locations is shown in the schedule. ## OPTIONAL POLICY EXTENSIONS These optional extensions only apply where specified in the schedule. Unless stated otherwise, Optional Extensions are included within 'What We Will Pay - A. Maximum Amount Payable'. They are not additional. ### A. NATURAL DISASTER COVER You are insured for natural disaster damage to insured property. The excess that will apply in each region is shown in the schedule. Where insured property is covered wholly or in part by the EQC Act, the following apply: #### 1. What we will pay if EQC Cover applies If EQC Cover applies: (a) this policy only pays in excess of the maximum cover under the EQC Act, and (b) the most we will pay for loss to insured property from any event is the difference between your EQC entitlement (whether or not that is actually paid to you) and the Maximum Amount Payable under this policy for that loss. #### 2. Excess The natural disaster damage excess is reduced by any payment made by the Earthquake Commission except for payments for land. ### B. SEASONAL STOCK ADJUSTMENTS Where stock has suffered a loss covered by the policy, the maximum amount payable for stock is increased by 20% for the months of: October, November and December, unless another period for the Seasonal Stock Increase is shown in the schedule. ## EXCLUSIONS ### A. TYPES OF PROPERTY NOT COVERED This policy does not insure: 1. any insured property during: (a) demolition, or (b) installation, construction or erection, or (c) testing and commissioning following 1.(b) above, other than cover provided by Automatic Policy Extension P: Property under Construction. 2. jewellery, precious stones, furs, precious metals or bullion, except if any of these items are: (a) stock of your business, or (b) a component of any plant or machinery that is insured under this policy as contents. 3. any of the following (including plant attaching to, or accessories in or on any of them): (a) any vehicle or trailer that is required to be registered or licensed to travel on a public road, (b) any mechanically or electrically propelled vehicles (including railway locomotives and rolling stock), (c) watercraft of any kind, (d) aircraft of any kind, except if any of these items are stock of your business, and at the time of the loss they are at the situation and are: (i) stationary, or (ii) not in operation, or (iii) not being used. 4. any of the following property: (a) standing timber or growing crops, (b) live plants including any trees, shrubs, hedges or grass, other than those forming part of landscaping, (c) livestock, (d) any living creature, (e) dams, canals, or reservoirs, (f) road bridges or road tunnels (other than cover provided by Automatic Policy Extension C. Docks, Piers, Wharves and Road Bridges), (g) railways, railway bridges or railway tunnels, (h) docks, piers, or wharves (other than cover provided by Automatic Policy Extension C. Docks, Piers, Wharves and Road Bridges), (i) mining property located below ground level, (j) any land, earth or fill (including topsoil and backfill), (k) transmission and distribution lines not located at the situation, (l) property located outside New Zealand (other than cover provided by Automatic Policy Extension Q. Portable Electronic Equipment Cover), except if the item of property is specifically listed in the schedule as being insured. 5. money, other than cover provided by Automatic Policy Extension P: Money Cover. 6. insured property that is in transit away from the situation, other than cover provided by: (a) Automatic Policy Extension P:Money Cover, (b) Automatic Policy Extension Q. Portable Electronic Equipment Cover, (c) Automatic Policy Extension AA: Temporary Removal Cover, (d) Automatic Policy Extension DD: Transit Cover. ### B. LOSSES NOT COVERED This policy does not insure: 1. any of the following types of damage to insured property: (a) slowly developing deformation or distortion, (b) marring or scratching, (c) gradual deterioration, (d) rot or mildew, (e) wear and tear, corrosion or rust. 2. loss immediately preceded by any of the following: (a) interruption of the supply of water, gas, electricity, or any fuel to the situation, other than cover provided by Automatic Policy Extension V: Refrigerated Goods, (b) total or partial stoppage of work, or interruption or cessation of any process, (c) a change in artificially controlled temperature or atmosphere, other than cover provided by Automatic Policy Extension V: Refrigerated Goods. 3. loss caused by or arising from any of the following: (a) action of micro-organisms, vermin or pests, (b) action of light, or inherent nature of the property (including shrinkage, evaporation, loss of weight, change of flavour or colour or texture or finish), (c) fumes, gas, dust, smoke or soot, (d) maintenance of insured property including servicing, cleaning and subsequent testing, (e) spontaneous combustion, (f) spontaneous fermentation. This exclusion only applies to the insured property, or to the part of the insured property (as applicable), directly affected. It does not apply to any resultant sudden and accidental loss to separate insured property, or to other parts of the same insured property (as applicable). 4. loss that is: (a) only evidenced by an unexplained disappearance, (b) only revealed by the taking of an inventory, (c) due to clerical or accounting errors. 5. loss caused by any of the following: (a) theft or attempted theft, other than cover provided by: (i) Automatic Policy Extension B: Burglary Cover, (ii) Automatic Policy Extension P: Money Cover, (iii) Automatic Policy Extension Q. Portable Electronic Equipment Cover, (iv) Automatic Policy Extension Y: Stolen Keys Cover, (v) Automatic Policy Extension CC: Theft Cover, (b) any fraudulent scheme or device, or false pretence practised on you or any other person, (c) theft, attempted theft or fraud by you or an employee of yours other than cover provided by Automatic Policy Extension P: Money Cover. 6. loss following any of these events: (a) exposure to weather conditions if the property is not designed to be left in the open (unless reasonable precautions have been taken to protect the property from those conditions), (b) landslip or subsidence, other than cover provided by Automatic Policy Extension M: Landslip and Subsidence and Optional Extension A: Natural Disaster Damage, (c) erosion or expansion of the ground, (d) normal settlement, normal shrinkage or expansion of buildings, foundations, walls, pavements, roads and other structural improvements. (e) settling, warping or cracking caused by earth or other movements, other than cover provided by Optional Policy Extension A: Natural Disaster Cover. ### C. BUILDING DEFECTS This policy does not insure loss in connection with a building or structure being affected by: 1. moisture or water build-up or the penetration of external moisture or water, or 2. the action or effects of mould, fungi, mildew, rot, decay, gradual deterioration, micro-organisms, bacteria, protozoa, or any similar or like forms, that is caused directly or indirectly by: 1. non-compliance with the New Zealand Building Code, or 2. faulty design or faulty specification, including but not limited to faulty sequence, procedure or programme, or 3. faulty materials, or 4. faulty workmanship, when the building or structure was constructed, manufactured, altered, repaired, renovated or maintained. This exclusion does not apply to loss that is caused by or directly arises from the leakage of internal pipes, internal water reticulation systems or internal cisterns. insured property (as applicable), directly affected. It does not apply to any resultant sudden and accidental loss to separate insured property, or to other parts of the same insured property (as applicable). 4. loss that is: (a) only evidenced by an unexplained disappearance, (b) only revealed by the taking of an inventory, (c) due to clerical or accounting errors. 5. loss caused by any of the following: (a) theft or attempted theft, other than cover provided by: (i) Automatic Policy Extension B: Burglary Cover, (ii) Automatic Policy Extension P: Money Cover, (iii) Automatic Policy Extension Q. Portable Electronic Equipment Cover, (iv) Automatic Policy Extension Y: Stolen Keys Cover, (v) Automatic Policy Extension CC: Theft Cover, (b) any fraudulent scheme or device, or false pretence practised on you or any other person, (c) theft, attempted theft or fraud by you or an employee of yours other than cover provided by Automatic Policy Extension P: Money Cover. 6. loss following any of these events: (a) exposure to weather conditions if the property is not designed to be left in the open (unless reasonable precautions have been taken to protect the property from those conditions), (b) landslip or subsidence, other than cover provided by Automatic Policy Extension M: Landslip and Subsidence and Optional Extension A: Natural Disaster Damage, (c) erosion or expansion of the ground, (d) normal settlement, normal shrinkage or expansion of buildings, foundations, walls, pavements, roads and other structural improvements. (e) settling, warping or cracking caused by earth or other movements, other than cover provided by Optional Policy Extension A: Natural Disaster Cover. ### D. CONFISCATION This policy does not insure loss in connection with confiscation, nationalisation, requisition or destruction of, or damage to property by order of government, public or local authority (unless the order is given to control any immediate and imminent threat of loss provided that the loss would be covered by this policy if it did occur). ### E. CONSEQUENTIAL FINANCIAL LOSS This policy does not insure any kind of consequential financial loss (e.g. financial loss that occurs as a direct or indirect result of the loss of insured property), including the following: 1. delays, 2. loss of market, 3. penalties, 4. rates, taxes, duties, development charges, 5. other charges or assessments arising out of capital appreciation, that are payable to comply with any regulations, 6. loss of use of any property, other than cover provided by: (a) Automatic Policy Extension – G. Expediting Costs Cover, (b) Automatic Policy Extension T: Redundant Foundations, (c) Automatic Policy Extension U: Redundant Plant and Stock. ### F. COSTS NOT INSURED This policy does not insure the cost of: 1. repairing or replacing faulty materials, or 2. fixing faulty workmanship, or 3. fixing any work performed to a faulty: (a) design plan, or (b) design specification, or 4. altering or modifying any part of any refrigeration or air conditioning plant to enable the plant to operate with a more ozone friendly refrigerant. This exclusion does not apply to any resultant sudden and accidental loss to separate insured property or to other parts of the same insured property arising from the above. ### G. DAMAGE TO MACHINERY This policy does not insure any machinery breakdown of a machine. This does not apply: (a) where sudden and accidental loss covered under this policy (or that would have been covered if the property was insured under this policy) occurs completely outside the machine resulting in the machinery breakdown occurring. However, this proviso does not apply to machinery breakdown resulting directly or indirectly from any: (i) error in: setting, programming or operating the machine, or (ii) stock or part of the machine being drawn into the machine, or (iii) failure to service or maintain the machine correctly, or (b) to resultant sudden and accidental loss to other parts of the machine that is not machinery breakdown, or (c) to the cover provided by Automatic Policy Extension D: Electric Motors Cover, or (d) to the cover provided by Automatic Policy Extension O. Machinery Breakdown, or (e) to the cover provided by Automatic Policy Extension V: Refrigerated Goods. ### H. DAMAGE TO BOILERS AND PRESSURE VESSELS This policy does not insure the cost of repairing or replacing any part of a boiler or pressure vessel that suffers loss through: 1. explosion, overheating, rupture, bursting or collapse (but not pressure caused by chemical explosion), or 2. cracking or leaking. This exclusion does not apply to any resultant sudden and accidental loss to other parts of the boiler or pressure vessel arising from the above, or to the cover provided by Automatic Policy Extension O. Machinery Breakdown. ### I. ELECTRONIC DATA AND SOFTWARE This policy does not insure loss to electronic data and software, from any cause whatsoever including, but not limited to, a computer virus. This includes loss of use, reduction in functionality or any other associated loss or expense in connection with electronic data and software. This exclusion does not apply to: 1. any sudden and accidental loss to other parts of the insured property, that occurs as a result of the loss to electronic data and software, or 2. cover provided by Automatic Policy Extension E: Electronic Data and Software. ### J. INFECTIOUS DISEASES This policy does not insure loss in connection with a: 1. notifiable infectious disease under the Health Act 1956, and/or 2. notifiable disease under the Biosecurity Act 1993. ### K. NATURAL DISASTER This policy does not insure natural disaster damage other than cover provided by Optional Policy Extension A: Natural Disaster Cover. ### L. NUCLEAR This policy does not insure any loss in connection with: 1. ionising radiation or contamination by radioactivity from: (a) any nuclear fuel, or (b) any nuclear waste from the combustion or fission of nuclear fuel. nuclear weapons material. ### M. PRODUCTION PROCESSES This policy does not insure loss to insured property while undergoing any production process where any part of that production process (including any accidental modification of the process), causes or contributes towards the loss in any way. ### N. SEEPAGE, POLLUTION AND CONTAMINATION This policy does not insure loss in connection with seepage, pollution or contamination except if the seepage, pollution or contamination results from sudden and accidental loss to insured property, which is otherwise covered under this policy. ### O. TERRORISM This policy does not insure any loss in connection with an act of terrorism, including in connection with controlling, preventing, suppressing, retaliating against, or responding to an act of terrorism. ### P. WAR This policy does not insure any loss in connection with any of the following, including controlling, preventing or suppressing any of the following: War, invasion, act of foreign enemy, hostilities or war like 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. ## HOW WE WILL PAY ### A. BASIS OF SETTLEMENT: REINSTATEMENT Where the schedule shows any item(s) of insured property are insured for reinstatement, we will indemnify you as follows: 1. where insured property is lost or destroyed: by paying you the cost to replace the insured property to a condition substantially the same as its condition when new, or 2. where insured property is physically damaged but not lost or destroyed: by paying you the cost to repair the loss to the damaged part of the insured property to a standard that is reasonably equivalent to its condition and relative quality when new, but without necessarily reproducing it exactly. #### Circumstances Where Reinstatement Does Not Apply 'How We Will Pay – B. Basis of Settlement: Indemnity' will apply in the following circumstances, regardless of any basis of settlement shown in the schedule to the contrary: 1. if you do not repair or replace the loss to the insured property, or 2. repair or replacement of the loss to the insured property is not started within a reasonable period of time, or 3. until the actual costs of repair or replacement of the loss to the insured property are incurred, or 4. if the insured property is awaiting demolition or disposal at the time of the loss, or 5. either of the following apply: (a) repair or replacement of the damaged, lost or destroyed insured property is not permissible under any regulations, or (b) repair or replacement of the damaged, lost or destroyed insured property is not permissible because of the undamaged portion of the property. ### B. BASIS OF SETTLEMENT: INDEMNITY Where the schedule shows any item(s) of insured property are insured for indemnity, we will indemnify you using whichever of the following options we choose: 1. where insured property is lost or destroyed: pay you the cost to replace the insured property with property of a similar condition, age and specification, as it was in, immediately prior to the loss, or 2. where insured property is physically damaged but not destroyed: pay you the cost to repair the loss to the damaged part of the insured property, as nearly as possible, to the condition it was in immediately prior to the loss, or 3. pay you an amount equal to the indemnity value of the damaged part of the insured property. ### C. ADDITIONAL COSTS YOU ARE COVERED FOR Where insured property has suffered a loss covered by this policy, then included in 'What We Will Pay - A. Maximum Amount Payable' for the insured property are: #### Costs of Compliance Necessary and reasonable costs incurred in complying with regulations in order to repair or replace loss to the damaged, lost or destroyed part of insured property, except costs incurred: 1. for work that you have already been ordered to carry out, or 2. solely for the purpose of seismically strengthening the insured property to a performance level greater than its performance level before the loss. We will repair your building to the same structural performance level it had before the loss. 3. in connection with undamaged property, or undamaged parts of property. This applies even if the undamaged property comprises a separate building, structure or item of plant or equipment. #### Demolition Costs Necessary and reasonable costs incurred to: 1. demolish or dismantle insured property, and/or 2. temporarily shore or prop insured property, and/or 3. remove debris from the situation (including any kind of solid, liquid or gas), and/or 4. clear, clean and repair gutters, drains and the like, and/or 5. recover, defend, safeguard, remove, temporarily store, and return insured property, whether damaged or undamaged, and/or 6. temporarily repair and secure insured property to make it comply with safety rules and regulations suitable for continued use, provided that the costs arise from a loss covered by this policy. Where any costs are in connection with the removal of asbestos, the maximum we will pay for any event is: (a) 5% of the site sum insured, or (b) $50,000, whichever is the lesser. #### Fees and Other Costs Necessary and reasonable costs incurred for: 1. architect's, engineer's, surveyor's, building consultant's fees, and/or 2. consents and associated legal fees, and/or 3. training consultants and IT technicians, to repair or replace the damaged, lost or destroyed insured property following a loss covered by this policy. #### Claims Preparation Costs Necessary and reasonable costs incurred to assess or prepare a claim following a loss covered by this policy. You are not insured for any costs incurred to investigate or negotiate a claim made under this policy. The most we will pay for any event is $25,000. ### D. LOCATION OF REPLACEMENT Where we pay to replace damaged, lost or destroyed insured property, you may choose to replace the property at: 1. the situation, or 2. any alternative site that you provide in New Zealand. Where you choose to use an alternative site we will not pay more than the cost to replace the damaged, lost or destroyed insured property at the situation in accordance with the terms of this policy. ### E. METHOD OF REPAIR OR REPLACEMENT We will pay the reasonable cost to repair or replace insured property based on current industry accepted building materials and construction methods. ### F. BASIS OF SETTLEMENT: CERTAIN TYPES OF PROPERTY The method of indemnity for the following types of insured property will be as follows, regardless of any basis of settlement shown in the schedule to the contrary. #### Stock For loss to stock that is not customers' goods, we will indemnify you by using one of the following methods: 1. for raw materials, supplies and other merchandise not manufactured by you: (a) the replacement cost at the time of replacement, provided that the replacement is carried out within a reasonable period of time, or (b) if this property is not replaced, the market value of it at the time and place of the loss. 2. for materials in the process of manufacture: the replacement cost of the raw materials and the cost of labour and other overhead charges expended at the time of the loss. 3. for finished goods: the replacement cost of the raw materials and the cost of labour and other overhead charges expended before any allowance for profit, or the cost of re-stocking these goods, whichever is the lesser. For loss to stock that is customers' goods, we will at our option pay: 1. the indemnity value of the customers' goods, or 2. the cost to repair the customers' goods, as near as reasonably possible, to the condition they were in immediately prior to the loss. #### Works of Art For loss to a work of art, we will at our option pay: 1. the indemnity value of the work of art, or 2. the cost to repair the work of art, as near as reasonably possible, to the condition it was in immediately prior to the loss. #### Electronic Data For loss to 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, nor 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. #### Software For loss to software, we will pay the reasonable cost of, restoring, re-setting or re-programming the software that is necessary to operate any electronic equipment or machine insured under this policy. #### Portable electronic equipment For loss to portable electronic equipment more than 2 years old we will at our option pay: 1. the indemnity value of the portable electronic equipment, or 2. the cost to repair the portable electronic equipment, as near as reasonably possible, to the condition it was in immediately prior to the loss. #### Limited Lifetime construction materials For loss to: 1. cladding, roofing or skylights, where they are made of plastic, polycarbonate, acrylic or PVC materials, and/or 2. any textile awnings or shade sails, we will at our option pay: (a) the indemnity value of the materials, or (b) the cost to repair the materials , as near as reasonably possible, to the condition they were in immediately prior to the loss. The indemnity value of the materials will be depreciated over the lifetime of the product based upon the manufacturer's UV rating. #### Office Equipment Upgrade For loss to office equipment, we will pay the cost for you to replace the equipment with an alternative model(s) of office equipment, provided that: 1. the alternative model has more energy-efficient features, and 2. the alternative model has otherwise comparable features and capabilities, and 3. the office equipment is destroyed, and we approve the upgrade. ## WHAT WE WILL PAY ### A. MAXIMUM AMOUNT PAYABLE 1. The most we will pay in total during an annual period for a building (or group of buildings) at a specified location in the schedule is the corresponding sum insured noted in the schedule for that building (or group of buildings). 2. The most we will pay in total during an annual period for contents is the corresponding sum insured for contents in the schedule. If there is a separate sum insured for contents at a specified location, the most we will pay during an annual period for contents at that location is the corresponding sum insured for that location in the schedule. 3. The most we will pay in total during an annual period for stock is the corresponding sum insured for stock in the schedule. If there is a separate sum insured for stock at a specified location, the most we will pay during an annual period for stock at that location is the corresponding sum insured for that location in the schedule. 4. The most we will pay in total during an annual period for any other item of insured property that is individually specified in the schedule with a corresponding sum insured is that sum insured. However, the most we will pay for all insured property in total during an annual period is the Total Sum Insured shown in the schedule, subject always to clauses B, C and D below. ### B. INCREASED MAXIMUM AMOUNT PAYABLE The amount referred to in 'What We Will Pay - A. Maximum Amount Payable' is increased as follows: The most we will pay in total during an annual period: 1. for all contents at a situation shown in the schedule is the sum insured for contents at that situation plus: (a) 10%, or (b) $100,000, whichever is the lesser. 2. for all stock at a situation shown in the schedule is the sum insured for stock at that situation plus: (a) 10%, or (b) $100,000, whichever is the lesser. Provided that : 1. these increases for contents and stock do not apply to cover provided by Optional Policy Extension A: Natural Disaster Cover, and 2. the most we will pay in total during an annual period at all situations for all contents and all stock remains unchanged ### C. REINSTATEMENT OF SUM INSURED ONCE REPAIRED The sum insured will only be reinstated as follows: If the insured property: 1. is automatically covered under this policy during its repair or replacement, the amount reduced will be progressively added back to the sum insured at the rate that the insured property that suffered the loss is progressively repaired or replaced. 2. is not automatically covered under this policy during its repair or replacement, the amount reduced will only be added back to the sum insured once the repair or replacement of the insured property that suffered the loss has been completed. The sum insured will not reinstate following natural disaster damage unless we have agreed to the reinstatement in writing. We may ask you to pay an additional premium for any reinstatement of the sum insured. ### D. SUM INSURED ADJUSTMENT ON RENEWAL FOR UNREPAIRED ITEMS The sum insured for any item of insured property that has suffered loss in any previous annual period and that has not been repaired or replaced at the start of the current annual period is: 1. the maximum amount payable for that item, less 2. the estimated cost of remedying the existing unrepaired or unreplaced loss. The sum insured will only be reinstated to its pre-loss level as follows: If the insured property: 1. is automatically covered under this policy during its repair or replacement, the amount reduced will be progressively added back to the sum insured at the rate that the insured property that suffered the loss is progressively repaired or replaced. 2. is not automatically covered under this policy during its repair or replacement, the amount reduced will only be added back to the sum insured once the repair or replacement of the insured property that suffered the loss has been completed. The sum insured will not reinstate following any claim arising from natural disaster damage unless we have agreed to the reinstatement in writing. We may ask you to pay an additional premium for any reinstatement of the sum insured. ### E. SUB LIMITS If any sub limit in this policy is higher than the maximum amount payable for the applicable insured property as shown in the schedule, the sub limit does not apply and the most we will pay is the maximum amount payable. ### F. ITEMS OF INSURED PROPERTY WITH LIMITED COVER The amount we will pay for some items of insured property is limited as follows: #### Customers' goods The most we will pay for customers' goods in total during an annual period is $20,000 unless a different amount for customers' goods is shown in the schedule. #### Site Improvements The most we will pay for site improvements at the site in total during any annual period is: 1. 10% of the maximum amount payable for building(s) at that site, or 2. $500,000, whichever is the lesser, unless a different amount for site improvements is shown in the schedule. #### Landscaping The most we will pay for landscaping at the site in total during any annual period is: 1. 5% of the maximum amount payable for building(s) at that site, or 2. $50,000, whichever is the lesser, unless a different amount for landscaping is shown in the schedule. #### Works of Art The most we will pay for any individual work of art for any event is $25,000 unless a different amount for that work of art is shown in the schedule. ### EXCESS The applicable excess shown in this Material Damage Policy will be deducted from the amount payable for each event. Where an event occurs over a period of more than 72 consecutive hours, one excess will be deducted for every 72 consecutive hour period. ### ONE EXCESS If a single event causes sudden and accidental loss to tangible property that you insure with us under this or any other policy only one excess will apply being the highest applicable individual policy excess. This does not apply to natural disaster damage. ### GST Where GST is recoverable by us under the Goods and Services Tax Act 1985: 1. all sums insured exclude GST, and 2. all sub limits exclude GST, and 3. all excesses include GST, and GST will be added, where applicable, to claim payments. ## HOW TO CLAIM ### A. WHAT YOU MUST DO If anything happens that may lead to a claim under this policy, you must: 1. do what you can to take care of the insured property to prevent any further loss, expense or liability, and 2. tell us as soon as possible, and 3. notify the police as soon as possible if you think any loss was caused by an illegal act, and 4. allow us to examine the insured property before any repairs are started, and 5. not destroy or dispose of anything that is or could be part of a claim, and 6. send to us as soon as possible anything you receive from anyone about a claim or possible claim against you, and 7. give us any information or help that we ask for, and 8. consent to your personal information, in connection with the claim, being: (a) disclosed to us, and (b) transferred to the Insurance Claims Register Limited. ### B. WHAT YOU MUST OBTAIN OUR AGREEMENT TO DO You must obtain our agreement before you: 1. incur any expenses in connection with any claim under this policy, or 2. negotiate, pay, settle, admit or deny any claim against you, or 3. do anything that may prejudice our rights of recovery. ### C. DISHONESTY If your claim is dishonest or fraudulent in any way, we may: 1. decline your claim either in whole or in part, and/or 2. declare either this Policy or all insurance you have with us to be of no effect and to no longer exist from the date of the dishonest or fraudulent act. This is at our sole discretion. ### D. ACTIONS WE MAY TAKE #### 1. Subrogation Once we have accepted any part of your claim under this policy, we may assume your legal right of recovery. If we initiate a recovery we will include your excess, and any other uninsured losses suffered by you. Where we do this, you agree to pay your proportional share of the recovery costs, and subsequently the proceeds of the recovery will be shared on the same proportional basis, except that we will reimburse your excess first. You must fully co-operate with any recovery process. If you do not, we may recover from you the amount paid in relation to the claim. #### 2. Recoveries If any property that we have paid a claim for is later found or recovered, you must tell us immediately and hand it over to us if we request it. We have the right to keep any property that we have paid a claim for under this policy, including any proceeds if it is sold. #### 3. Reparation If any person is ordered to make reparation to you for loss to any property that we have paid a claim under this policy for, then you must tell us. Any payments received, must first reimburse our claims payment up to the amount of any reparation received. #### 4. Branded Stock For salvage that is branded goods or merchandise, we will not dispose of these items by sale unless you agree. If you do not agree, the value of the salvage will be deducted from any claim payment. ### E. MUTUALLY ACCEPTABLE ASSESSORS Where we appoint any loss adjuster, assessor, surveyor, valuer or investigator to any claim under this policy, the appointee must be mutually acceptable to both ourselves and you. ## GENERAL CONDITIONS ### A. HOW WE WILL ADMINISTER THIS POLICY #### 1. Cancellation ##### BY YOU You may cancel this policy at any time by notifying us. If you do, we will refund any premium that is due to you based on the unused portion of the period of insurance. You must pay any outstanding premium due for the used portion of the period of insurance. ##### BY US We may cancel this policy by giving you or your broker notice in writing or by electronic means at your or your broker's last known address. Your policy will be cancelled from 4pm on the 30th day after the date of the notice. We will refund you any premium that is due to you based on the unused portion of the period of insurance. #### 2. Change of Terms We may change the terms of this policy (including the excess) by giving you or your broker notice in writing or by electronic means at your or your broker's last known address. Unless otherwise specified in this policy the change in terms will take effect from 4pm on the 30th day after the date of the notice. #### 3. Other Insurance You must notify us as soon as you know of any other insurance policy that covers you for any of the risks covered under this policy. This policy does not cover your loss at all if it is insured to any extent under any other insurance policy. We will not contribute towards any claim under any other insurance policy. This does not apply to cover provided by Automatic Policy Extension F: Employee Effects Cover or Automatic Policy Extension W: Tenanted Premises, or to cover for customers' goods. #### 4. Interests of Other Parties If we are advised of any party having a financial interest over your insured property, we may pay part or all of any valid claim proceeds to that party to the extent of their interest. This will form part of our obligations to you under this policy. You consent to us transferring your relevant personal information to that party. Any party, who is not recorded as having a financial interest under this policy, is not covered by this policy and does not have rights to claim under this policy. #### 5. Separate Insurance If more than one person or entity is named as 'Insured' in the schedule, then all the parties are insured separately (as though a separate policy had been issued to each person/entity). However, the sum insured and any sublimit in this policy will apply to the aggregate of all amounts payable to all insureds for any event. #### 6. Premium Adjustments If the premium for this policy has been calculated based on estimated figures, then the premium is only a provisional premium for the annual period. Within 3 months of the expiry of the annual period, you must tell us what the actual figures are. We will re-calculate your actual premium based on the actual figures. The difference between the actual and the provisional premiums will either be payable to us or refunded to you depending on the outcome of the adjustment, but any refund will be limited to a maximum of 50% of the provisional premium. #### 7. Stock Declarations Where stock is insured on a Stock Declaration basis, the premium charged on the item stock is provisional and represents 75% of the full premium payable for that item. At the end of each annual period we will adjust it as follows: 1. you must give us a declaration of the actual value of the stock you held on the last business day of each month for the annual period. This must be received by us within six weeks from the end date of the annual period, 2. if a monthly declaration exceeds the sum insured then we will adjust it back to the sum insured for the purpose of calculating your stock averages, 3. if no declaration is received for any one month, the stock sum insured will apply for that month, 4. the average of the monthly declarations will be calculated at the end of the annual period and the final premium payable will be based on the greater of: (a) that average, or (b) one half of the sum insured on stock, 5. we will re-calculate your actual premium based on the actual figures. The difference between the actual and the provisional premiums will either be payable to us or refunded to you depending upon the outcome of the adjustment, but any refund will be limited to a maximum of 50% of the provisional premium. ### B. LAWS AND ACTS THAT GOVERN THIS POLICY #### 1. Governing Law and Jurisdiction The law of New Zealand applies to this policy and the New Zealand Courts have exclusive jurisdiction. #### 2. Legislation Changes Any reference to any Act of Parliament or subordinate rules referred to in this policy included any amendments made or substitutions to that law. #### 3. Insurance Law Reform Acts The exclusions and conditions in this policy are subject to your rights under the Insurance Law Reform Acts 1977 and 1985. #### 4. Currency Any amounts shown in this policy and in the schedule are in New Zealand dollars. ### C. YOUR OBLIGATIONS #### 1. Breach of Any Condition If: 1. you, or 2. any other person or entity we cover under this policy, or 3. anyone acting on your behalf, breaches any of the terms and/or conditions of this policy, we may: (a) decline your claim either in whole or in part, and/or (b) declare either this policy or any or all insurance you have with us to be of no effect and to no longer exist. The indemnity provided by this policy will not be invalidated or prejudiced by reason of any breach of Warranty or Condition of this policy where the breach occurs without the knowledge and consent of the Insured. Provided that notice is given to us as soon as practicable once you become aware of any such breach and you agree to pay an appropriate additional premium if required. #### 2. True Statements and Answers True statements and answers must be given , whether by you or any other person, when you: (a) apply for this insurance, and/or (b) notify us regarding any change in circumstances, and/or (c) make any claim under this policy, and provide any further communication regarding the claim. #### 3. Reasonable Care You must take reasonable care at all times to avoid circumstances that could result in a claim. Your claim will not be covered if you are reckless or grossly irresponsible. #### 4. Change in Circumstances You must notify us immediately if, after we have accepted your application for this policy, there is a material: 1. increase in the risk covered, or 2. alteration of the risk covered. We may change the terms of this policy in response to any material change in circumstances you or anyone else advises us of. The change in terms will be effective from the date of the change in circumstances. Information is 'material' where we would have made different decisions about either: (a) accepting your insurance, or (b) setting the terms of your insurance, if we had known that information. If in any doubt, notify us anyway. The 'risk covered' refers to both: (a) the actual property or liabilities insured, and (b) you or other persons covered by this policy. ### D. REPAIRS OR REINSTATEMENT BY THE INSURED We will allow you to undertake any repair or replacement work in relation to the loss covered under this policy and due allowance shall be made for a reasonable margin of profit provided that: 1. we are satisfied you have the required qualifications and capability to undertake such work, and 2. your charges and/or costs are competitive. ### E. RENEWAL TERMS If we intend to refuse renewal of this policy, or to offer renewal on any terms less favourable to you than those applying during the current period of insurance, we must give you notice of that intention. The notice must be received by you not less than 30 days before the expiry of the current period of insurance. If the notice is not received by that time we will, if so required by you, extend the current period of insurance so that it will expire not less than 30 days after the notice is received by you. You undertake to pay a pro-rata proportion of the annual premium for the period of any extension. ### F. WAIVER OF RECOVERY This policy will not be invalidated or prejudiced by reason of you: 1. having waived any right of recovery or indemnity you may have against any: (a) party to a contract or agreement with you in the ordinary course of business, provided the contract or agreement is not for the supply of goods or services by you and the waiver was made in writing before the loss occurred, or (b) related company forming part of a group of related companies of which you are a member. For the purpose of this General Condition, 'related company' has the same meaning as the definition of those words in the Companies Act 1993, or (c) other party provided that the waiver is made and has been declared to and accepted by us, or 2. having to release from liability any party in accordance with any legislative or regulatory requirement. ### G. SANCTIONS The Insurer will not be liable to provide any coverage or make any payment hereunder if to do so would be in violation of any sanctions law or regulation which would expose the Insurer, its parent company or its ultimate controlling entity to any penalty under any sanctions law or regulation. ### H. COMMERCIAL COOKING WARRANTY Where commercial cooking is carried out at the situation, cover under this insurance policy is conditional upon compliance with the following requirements: a) that a separate non-adjustable manually reset thermostat be fitted to each pan which thermostats shall disconnect each heating element from the power supply when the temperature of the cooking oils or cooking fats reaches 220 degrees centigrade, and b) that each pan be fitted with close-fitting steel lids which must be shut down in the event of fire and when the pans are not in use, or alternatively, an asbestos blanket and container be installed adjacent to the deep frying pans and be readily accessible for immediate use, and c) that one fully charged Dry Powder extinguisher of not less and 2 kg capacity or one fully charged BCF extinguisher of not less than 1.8 kg capacity be mounted in a conspicuous place in the area in which frying operations are carried out and be readily accessible for immediate use, and d) that all thermostats, pans, asbestos blankets and containers and extinguishers be at all times maintained in good working order. For the purposes of ---