SME Office Tenant — Professional Services / Tech Startup
10-50 person professional services / tech firm in leased office — IT + contents + revenue-interruption BI.
Office tenants run lighter MD cover (less stock, more IT equipment) but heavier BI cover because revenue interruption from office unavailability is the bigger risk. Electronic data exclusion is standard — separate Cyber cover needed for data recovery.
FCIB panel for this scenario
For this operator profile, FCIB typically places business through: NZI , QBE , AIG .
What matters in the wording
For this scenario, the fact keys to compare across the ingested wordings are:
sum_insured_basis — Sum insured basis
sublimits — Sublimits
indemnity_period — BI indemnity period
bi_basis — BI basis
exclusions — Exclusions
Watch out for
Electronic data exclusion in standard MDBI — get a separate Cyber cover for data recovery + system reinstatement.
Portable equipment (laptops, phones) at off-site locations may need explicit extension.
Working-from-home rotation needs declared coverage for employee-home-located equipment.
natural disaster damage (earthquake, subterranean fire, volcanic activity, tsunami, geothermal activity, hydrothermal activity, or fire caused by any of these) — unless Optional Policy Extension Natural Disaster Cover applies
war, invasion, act of foreign enemy, hostilities or warlike operations (whether war is declared or not), civil war, mutiny, rebellion, revolution, civil commotion assuming the proportions of or amounting to an uprising, insurrection, military or usurped power
act of terrorism, including controlling, preventing, suppressing, retaliating against, or responding to an act of terrorism
nuclear — ionising radiation or contamination by radioactivity from any nuclear fuel or nuclear waste from combustion or fission of nuclear fuel; nuclear weapons material
gradually developing deformation or distortion
marring or scratching
gradual deterioration
rot or mildew
wear and tear, corrosion or rust
action of micro-organisms, vermin or pests
action of light, or inherent nature of the property (including shrinkage, evaporation, loss of weight, change of flavour or colour or texture or finish)
fumes, gas, dust, smoke or soot
maintenance of insured property including servicing, cleaning and subsequent testing
spontaneous combustion
spontaneous fermentation
interruption of supply of water, gas, electricity or any fuel to the situation
total or partial stoppage of work, or interruption or cessation of any process
change in artificially controlled temperature or atmosphere
loss only evidenced by unexplained disappearance
loss only revealed by taking of an inventory
loss due to clerical or accounting errors
theft or attempted theft (except as covered by Automatic Policy Extensions Burglary Cover, Theft Cover, Money Cover, Stolen Keys Cover)
fraudulent scheme or device, or false pretence
theft, attempted theft or fraud by insured or employee (except as covered by Automatic Policy Extension Money Cover)
exposure to weather conditions if property is not designed to be left in the open (unless reasonable precautions taken)
landslip or subsidence (except Automatic Policy Extension Landslip and Subsidence and Optional Extension Natural Disaster Cover)
erosion or expansion of the ground
normal settlement, normal shrinkage or expansion of buildings, foundations, walls, pavements, roads and other structural improvements
settling, warping or cracking caused by earth or other movements (except Optional Policy Extension Natural Disaster Cover)
building defects — moisture/water build-up or penetration, mould, fungi, mildew, rot, decay, gradual deterioration, micro-organisms caused by non-compliance with NZ Building Code, faulty design/specification, faulty materials or faulty workmanship
confiscation, nationalisation, requisition or destruction by order of government, public or local authority
consequential financial loss including delays, loss of market, penalties, rates, taxes, duties, development charges, loss of use of property
cost of repairing or replacing faulty materials or faulty workmanship or faulty design plan/specification
cost of altering or modifying refrigeration or air conditioning plant to operate with more ozone friendly refrigerant
machinery breakdown (except Automatic Policy Extension Electric Motors Cover, Refrigerated Goods, and Optional Policy Extension Machinery Breakdown)
boiler or pressure vessel — cost of repairing or replacing parts suffering explosion, overheating, rupture, bursting, collapse, cracking or leaking
loss to electronic data and software from any cause including computer virus (except Automatic Policy Extension Electronic Data and Software)
infectious diseases — notifiable infectious disease under the Health Act 1956 or notifiable disease under the Biosecurity Act 1993
seepage, pollution and contamination (except where resulting from sudden and accidental loss to insured property otherwise covered, or Automatic Extension Illegal Substances)
production processes — loss to insured property while undergoing any production process where any part of that process causes or contributes to the loss
sanctions — payment contravening UN resolutions or trade/economic sanctions of New Zealand, Australia, United Kingdom, USA or European Union
property located outside New Zealand
asbestos removal limited to 5% of site sum insured or $25,000 (lesser) per event
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
total or partial cessation of work unless also resulting from an otherwise insured Event
Computer Virus — Loss or Damage directly or indirectly caused by or arising from any Computer Virus
confiscation, requisition or destruction of or Damage to Insured Property by order of government or local authority (except for fire or another insured peril control purpose)
consequential losses including fines, penalties, loss of use, delays, loss of market, rates, tax, duty or development charges, and charges arising out of capital appreciation to comply with Regulations (unless under Section 2)
destruction, distortion, erasure, corruption, alteration, misinterpretation or misappropriation of Electronic Data from any cause
error in creating, amending, entering, deleting or using Electronic Data
inability or failure to receive, send, access or use Electronic Data
faulty materials — cost of repairing or replacing faulty materials
faulty workmanship — cost of putting right faulty workmanship
faulty or defective design, plan or design specification
Historic, heritage or cultural heritage significance or value — additional costs to comply with Regulations in connection with such significance
illegal substances — Loss, Damage, interruption or interference directly or indirectly caused by or arising from any activity in connection with drugs or illegal substances (except fire or explosion)
notifiable infectious disease under the Health Act 1956
pest management plan under the Biosecurity Act 1993
interruption of supply — Loss or Damage or business interruption directly or indirectly caused by interruption of supply of electricity, fuel, water, gas, steam or refrigerant
leaky building — Loss or Damage caused by moisture or water build-up, penetration of external moisture or water, or action of mould, fungi, mildew, rot, decay, gradual deterioration, micro-organisms, bacteria, protozoa
machinery breakdown — explosion, overheating, rupture, bursting, cracking, leakage or collapse of Machine; mechanical, hydraulic, electrical or electronic breakdown, failure, malfunction or derangement of any Machine (unless caused by non-excluded loss)
geothermal activity or subterranean fire
landslip, subsidence or erosion of the land (subject to Extension 12)
earthquake, tsunami, volcanic eruption, hydrothermal activity, and fire following any of these
normal settlement, shrinkage or expansion of Buildings, foundations, walls, pavements, roads or other structural improvements
nuclear weapons material
ionising radiation from or contamination by radioactivity from nuclear fuel, nuclear waste or combustion of nuclear fuel
radioactive, toxic, explosive or other hazardous or contaminating properties of any nuclear installation, reactor or nuclear assembly
any weapon or device employing atomic or nuclear fission and/or fusion or other like reaction or radioactive force or matter
fumes, gas, dust, smoke or smuts
normal working, normal maintenance, wear and tear, erosion, corrosion, slowly developing deformation or distortion, marring or scratching
action of micro-organisms, animal, vermin or insects
inherent nature of the property or action of light
seepage, pollution or contamination
changes in artificially controlled temperature, or changes in atmosphere or humidity
property in the course of installation, construction, demolition or erection, or testing (subject to Extension 18)
Money (as property — subject to Extension 15)
jewellery, precious stones, furs, precious metals or bullion (other than as Stock or part of plant/machinery)
motor vehicles, other mechanically or electrically propelled vehicles, watercraft and aircraft (other than as Stock)
property in transit other than at Premises owned or occupied by You
property damaged as a result of undergoing any Production Process where Damage is directly caused by that process
standing timber, growing crops, live plants, livestock or any living creature, trees, hedges, dams, canals, reservoirs, artificial turf, railways, road or railway tunnels, bridges, docks, piers, wharves, mining property beneath the surface, any land including topsoil and backfill
property located outside New Zealand (unless shown in Schedule)
sanctions — Loss or Damage or benefit that would contravene any UN resolution or trade/economic sanctions laws of New Zealand, Australia, United Kingdom, United States of America or European Union
seismic strengthening — costs of seismic strengthening to a level greater than immediately prior to Damage for damaged but not Destroyed property
terrorism — Loss, Damage, death, injury, illness, cost or expense directly or indirectly caused by, resulting from or in connection with any act of Terrorism; and actions taken in controlling, preventing or suppressing any act of terrorism
Transmission and Distribution Lines (except lines from public highway to insured Premises within 300 metres of an insured structure that are the responsibility of the Insured)
unexplained disappearances, shortages revealed only by inventory, shortages due to clerical or accounting errors
fraudulent scheme or device, theft or false pretence practised on or by You or any person having care of Insured Property including employees
war, invasion, acts of foreign enemies, hostilities or war-like operations (whether war be declared or not), civil war
mutiny, civil commotion amounting to a popular rising, military rising, insurrection, rebellion, revolution, military or usurped power
exposure to weather conditions where property is not normally left in the open unless reasonable precautions taken
war, invasion, act of foreign enemy, hostilities or warlike operations (whether war is declared or not), civil war, mutiny, rebellion, revolution, civil commotion assuming the proportions of or amounting to an uprising, insurrection, military or usurped power
act of terrorism, including controlling, preventing, suppressing, retaliating against, or responding to an act of terrorism
nuclear — ionising radiation or contamination by radioactivity from any nuclear fuel or nuclear waste; nuclear weapons material
gradual deterioration
wear and tear, corrosion or rust
slowly developing deformation or distortion
marring or scratching
rot or mildew
action of micro-organisms, vermin or pests
action of light, or inherent nature of the property (including shrinkage, evaporation, loss of weight, change of flavour or colour or texture or finish)
interruption of supply of water, gas, electricity or fuel to the situation (except Refrigerated Goods extension)
total or partial stoppage of work, or interruption or cessation of any process
change in artificially controlled temperature or atmosphere (except Refrigerated Goods extension)
loss only evidenced by unexplained disappearance
loss only revealed by taking of an inventory
loss due to clerical or accounting errors
theft or attempted theft (except where covered by Burglary, Money, Portable Electronic Equipment, Stolen Keys or Theft Cover extensions)
fraudulent scheme or device, or false pretence
theft, attempted theft or fraud by insured or employee (except Money Cover extension)
exposure to weather conditions if property not designed to be left in the open (unless reasonable precautions taken)
landslip or subsidence (except Automatic Extension N: Landslip and Subsidence and Optional Extension A: Natural Disaster Cover)
erosion or expansion of the ground
normal settlement, normal shrinkage or expansion of buildings, foundations, walls, pavements, roads and other structural improvements
settling, warping or cracking caused by earth or other movements (except Optional Policy Extension A: Natural Disaster Cover)
building defects — moisture/water build-up or penetration of external moisture/water; mould, fungi, mildew, rot, decay, gradual deterioration, micro-organisms, bacteria caused by non-compliance with NZ Building Code, faulty design, faulty specification, faulty materials or faulty workmanship
confiscation, nationalisation, requisition or destruction by order of government, public or local authority
consequential financial loss including delays, loss of market, penalties, rates, taxes, duties, development charges, loss of use
cost of repairing or replacing faulty materials or faulty workmanship or faulty design
altering or modifying refrigeration or air conditioning plant to operate with more ozone friendly refrigerant
machinery breakdown of a machine (except as provided by Automatic Extension O: Machinery Breakdown and Electric Motors extension)
boiler or pressure vessel loss through explosion, overheating, rupture, bursting, collapse, cracking or leaking (except Machinery Breakdown extension)
electronic data and software loss from any cause including computer virus (except Automatic Extension E: Electronic Data and Software)
seepage, pollution or contamination (unless resulting from sudden and accidental loss otherwise covered)
notifiable infectious disease under the Health Act 1956 or notifiable disease under the Biosecurity Act 1993
loss to insured property while undergoing any production process where the process causes or contributes to the loss
property located outside New Zealand (except Portable Electronic Equipment extension)
property in transit away from the situation (except specified extensions)
asbestos removal — capped at 5% of site sum insured or $50,000 whichever is lesser
sanctions — no coverage where payment would violate any sanctions law or regulation
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
the applicable Excess stated in the Schedule
fraudulent misappropriation of Insured Property committed by any employee, partner or director of the Insured
voluntarily parting with title or possession of any Insured Property if induced to do so by any fraudulent scheme, trick or false pretence
any consequential economic loss including penalties, loss of use of any property, delays or loss of market
Loss Or Damage caused solely by exposure to weather conditions to Insured Property not normally left in the open unless reasonable precautions have been taken
unexplained loss or inventory shortages revealed only at stocktaking or shortages due to accounting or clerical errors
Loss Or Damage caused by or resulting from normal settling, shrinkage or expansion of Building or foundations
Loss Or Damage caused by landslip, subsidence, erosion or expansion of the ground
Loss Or Damage to Insured Property deliberately caused by You
design fault, error or omission in design, plan or specification
wear and tear, gradual deterioration, corrosion
vermin or insects
change in artificially controlled temperature or atmosphere
fumes, gas, dust, smoke or smuts, action of light, inherent nature of the property, shrinkage, evaporation, loss of weight, change of flavour, colour, texture or finish, pollution, contamination, and interruption of the supply of water, gas, electricity or fuel
Loss Or Damage to any plant or equipment directly caused by its own electrical malfunction
Loss Or Damage to Stock undergoing any production process where the Loss Or Damage is directly caused by the normal operation of that process
Loss Or Damage directly caused by explosion, rupture, bursting, cracking, leakage, collapse, of steam boilers due to fluid pressure within or without (other than pressure caused by chemical explosion)
Loss Or Damage directly caused by mechanical or electronic breakdown of machinery or electrical equipment
any costs incurred for the purpose of seismically strengthening the Insured Property to a performance level greater than its performance level before the Loss Or Damage
shortages caused by errors in receiving or paying out Money
fraud or dishonesty of any employee of the Insured unless discovered within 72 hours (excluding Saturday, Sunday and/or Public Holiday) of its occurrence
payment of Money for or in consideration of a cheque which is subsequently dishonoured
Money being entrusted to any person other than You, Your employees, Your authorised agents, or a professional Money carrier
war and warlike operations (general policy exclusions — referenced but full text truncated)
nuclear (general policy exclusions — referenced but full text truncated)
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
Explosion, rupture, bursting, cracking, leaking, or collapse of any steam boiler or pipe or economiser or any other pressure vessel due to fluid pressure within or without (Boilers and Pressure Vessels)
Mechanical or electrical Breakdown of machinery or electrical equipment (applies only to the machine or equipment in which the Breakdown occurs; resultant Damage to other Insured Property not excluded)
Insured Property in the course of installation, construction, demolition, erection, or testing following any of them (Contract Works)
Damage directly resulting from shortages revealed only by the taking of an inventory or shortages due to clerical or accounting errors (Disappearance)
Any Damage, cost, claim or expense directly or indirectly arising out of or relating to the calculation, comparison, differentiation, sequencing or processing of data involving the date change to the year 2000 or any other date change including leap year calculations (Electronic Date Recognition)
The cost of repairing or replacing defective materials; putting right defective workmanship; putting right work performed to a defective design plan or design specification (Faulty Materials, Workmanship or Design)
Damage to the Insured Property, or part immediately affected, caused by or arising out of fumes, dust, smoke or soot (resultant Damage to other Insured Property not excluded)
Damage directly caused in respect of the Insured Property, or part immediately affected, by total or partial cessation of work, retarding or interruption or cessation of any process (Interruption)
Damage to Insured Property directly caused by, or resulting from, subsidence, landslip or erosion of land (Land Movement)
Damage to Insured Property directly caused by, or resulting from, Natural Disaster unless specified with a Sum Insured in the Schedule (Natural Disaster — earthquake, subterranean fire, volcanic eruption, tsunami, geothermal activity, hydrothermal activity)
Damage to Insured Property, or part immediately affected, caused by or arising out of the nature of the property including shrinkage, evaporation, loss of weight, change in flavour, colour, texture or finish, or the action of light (Nature of the Property)
Wear and tear, erosion, corrosion, slowly developing deformation or distortion or the consequences of normal working; mould, rot, vermin or insects; cost of normal maintenance (Normal Damage)
Confiscation, requisition or Damage to Insured Property by lawful order of any government or local authority unless the order is given for the purpose of controlling any insured peril (Order of Authorities)
Damage caused by or arising out of pollution or contamination unless the pollution or contamination itself is caused by an Accidental event not otherwise excluded (Pollution)
Jewellery, precious stones, furs, precious metals or bullion other than as Stock of the Business or as part of any plant that forms part of the Contents of the Business (Precious Goods)
Any Damage, cost or expense directly or indirectly caused by, resulting from or in consequence of any Insured Property where such property has pre-existing damage or deferred maintenance at the inception date of this insurance (Pre-Existing Damage or Deferred Maintenance)
Damage to Insured Property caused by the normal operation of a process where the Damage is a direct and natural consequence of the process (Process)
Damage to Insured Property directly resulting from theft by any of the Insured's employees; or theft by any other person unless accompanied by violence or threat of violence or by violent or forcible entry to or exit from the Premises (Theft)
Damage to Insured Property or part immediately affected, directly or indirectly caused by interruption of the supply to the site of water, gas, electricity or any fuel (Utilities)
war and warlike operations (General Exclusions — to be confirmed from full General Exclusions text)
nuclear risks (General Exclusions — to be confirmed from full General Exclusions text)
war, invasion, acts of foreign enemies, hostilities or warlike operations (whether war be declared or not), civil war
mutiny, civil commotion assuming the proportions of or amounting to a popular rising, military rising, insurrection, rebellion, revolution, military or usurped power
any act of terrorism
confiscation, requisition, or destruction of or damage to property by order of government or local authority (unless for fire or covered peril control)
nuclear weapons material
ionising radiations or contamination by radioactivity from any nuclear fuel or from any nuclear waste from the combustion of nuclear fuel
any loss caused directly by or arising directly or indirectly from a cyber incident or a cyber act including any action taken in controlling, preventing, suppressing or remediating such event
total or partial destruction, distortion, erasure, corruption, alteration, misinterpretation or misappropriation of electronic data
error in creating, amending, entering, deleting or using electronic data
total or partial inability to use or failure to receive, send or access electronic data for any time or at all
any loss of use, reduction in functionality, repair, replacement, restoration or reproduction of any electronic data
landslip, subsidence, erosion or expansion of the land (unless Additional Cover 2.31 applies)
normal settlement, shrinkage or expansion of buildings, foundations, walls, pavements, roads and other structural improvements
any loss, claim, cost or expense directly or indirectly caused by a notifiable disease under the Health Act 1956
any pest management plan under the Biosecurity Act 1993
any communicable disease
losses in respect of transmission and distribution lines (subject to exception for lines within 300 metres of insured structure that are your responsibility)
seismic strengthening costs to a level greater than immediately prior to the loss
loss to any building or structure directly or indirectly caused by failure to contain a material, design, system or reasonable standard of workmanship necessary to prevent or manage moisture or water penetration
cost of repairing or replacing faulty materials, putting right faulty workmanship, or putting right work performed to a faulty design, plan or specification
unexplained disappearances; shortages revealed only by inventory; shortages due to clerical or accounting errors, shoplifting, misplacing of information
your decision to hand over the property to someone else before you have paid for it
theft of insured property from unlocked or insecure vehicles or insured property left in the open air unless in a secure yard
theft or fraud by you or by any of your employees or principals
any fraudulent scheme or device or false pretence practiced on you or on any other person having care of your property
normal working, normal maintenance, wear and tear, erosion, corrosion, gradual deterioration (including gradual deterioration caused by dampness or penetration of moisture), slowly developing deformation or distortion
action of micro-organisms (including but not limited to rot and mould), vermin or insects
the inherent nature of your property (including but not limited to shrinkage, evaporation, loss of weight, change in flavour, colour, texture or finish, action of light)
dust, fumes, smoke or smut from industrial operations (other than sudden and unforeseen damage), moths, termites or other insects, vermin, rust, oxidation, mildew, mould, wet or dry rot, corrosion, change of colour, dampness, or atmosphere
loss in connection with a change in any artificially controlled temperature or atmosphere (subject to Additional Cover 2.24 Refrigerated goods)
property in the course of installation, construction, demolition, erection, or testing (subject to Additional Cover 2.18)
current coin, bank and currency notes, cheques, traveller's cheques, postal notes, money orders, unused postage stamps, redeemable vouchers and tokens, franking machine credits, credit card vouchers, phone cards or other negotiable instruments in excess of $1,000 per loss per situation (subject to Money clause)
jewellery, precious stones, furs, precious metals or bullion (other than as stock of the business or as part of any plant)
motor vehicles and other mechanical or electrically propelled vehicles and accessories (subject to exceptions for unregistered crane/mobile plant and stock)
watercraft and aircraft of every kind and accessories (except as stock or for auction and not in use or on demonstration)
property in transit other than at premises owned or occupied by you (subject to Additional Cover 2.35 Transit)
property damaged as a result of it undergoing any production process where the damage is directly caused by the operation of that process
standing timber, growing crops, crops harvested but not yet in storage, live plants, trees, hedges (other than those covered under building definition), livestock, dams, canals, reservoirs (but not tanks), road or railway tunnels, road or railway bridges (other than at insured premises), docks, piers, wharves, mining property located beneath the surface (unless specified in schedule)
Next step
Personalised advice on which commercial-md policy fits this operator profile is regulated under the Financial Markets Conduct Act 2013 — contact FCIB: Stewart Hunt — stewart@fcib.co.nz | 0800 437 699 | disclosure statement.
