Trades and Services PackPolicy Document.

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Table of ContentsPage

Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2About Allianz . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2Understanding Your Policy and its important terms and conditions . . . . . . . . . . . . . . . . . . . . . . . . 2Applying for cover . . . . . . . . . . . . . . . . . . . . . . . . . . 3Cooling off and cancellation rights . . . . . . . . . . . . . . 4Basis on which We insure You . . . . . . . . . . . . . . . . . 4Your Duty of Disclosure . . . . . . . . . . . . . . . . . . . . . . 5Privacy information. . . . . . . . . . . . . . . . . . . . . . . . . . 6General Insurance Code of Practice . . . . . . . . . . . . . 7Dispute resolution process –helping You solve any problems . . . . . . . . . . . . . . . . 7Contact for assistance or confirmation of cover . . . . . 8Renewal procedure . . . . . . . . . . . . . . . . . . . . . . . . . . 8Terrorism Insurance Act . . . . . . . . . . . . . . . . . . . . . . 9General definitions . . . . . . . . . . . . . . . . . . . . . . . . 9General exclusions applicable toall Sections of this Policy . . . . . . . . . . . . . . . . . . 12Claims procedure and conditions . . . . . . . . . . . 16General conditions applicable toall Sections of this Policy . . . . . . . . . . . . . . . . . . 18Section One – General Property . . . . . . . . . . . . 24The cover . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24Definitions applicable to this Section . . . . . . . . . . . . 24Defined Events applicable to this Section . . . . . . . . 24Basis of Settlement applicable to this Section. . . . . . 25Additional benefit applicable to this Section. . . . . . . 25Specific exclusions applicable to this Section . . . . . . 26Specific conditions applicable to this Section . . . . . . 28Section Two – Public and Products Liability . . . 30The cover . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30Definitions applicable to this Section . . . . . . . . . . . . 30Limit of Indemnity and Excess applicable to this Section. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34Supplementary payments . . . . . . . . . . . . . . . . . . . . 34Specific exclusions applicable to this Section . . . . . . 35Specific conditions applicable to this Section . . . . . . 43

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IntroductionThis document contains information designed to helpYou decide whether to buy Our Trades and ServicesPack Policy.

About Allianz

Allianz Australia Insurance Limited ABN 15 000 122 850is the insurer of this Policy and is one of Australia’slargest general insurers. We utilise years of localexpertise, combined with global experience to offer arange of products and services to Our customers. As amember of the worldwide Allianz Group, We arecommitted to continuous improvement of Our productsand services and strive to achieve this throughknowledge transfer within the Group, dedicatedtechnical research units, sharing globally new productdevelopments and a wide range of risk managementservices.

Understanding Your Policy and its importantterms and conditions

To properly understand the Policy’s significant features,benefits and risks You need to carefully read:• about each of the available types of cover and

benefits in each of the Sections One and Two (thecover provided under each Section can be affectedby the following);

• the rest of this “Introduction” section – this setsout how You apply for cover, the basis on whichWe insure You, the duty of disclosure You need tomeet before We insure You, Our privacyinformation and Our dispute resolution procedures;

• the “General definitions” section – this sets outwhat We mean by certain words used in the Policy.These words begin with a capital letter throughoutthis document. Each coverage Section may alsocontain definitions relevant to that Section;

• the “General exclusions applicable to all Sections ofthis Policy” section – this sets out the generalexclusions and limits that apply to all covers andbenefits;

• the “Claims procedure and conditions” and“General conditions applicable to all Sections of thisPolicy” sections – these set out certain generalrights and obligations that You and We have. If You

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do not meet them We may be able to refuse to payor reduce what We pay for a claim to the extentpermitted by law;

• the Schedule and any endorsements or otherwritten changes to the cover We issue You with –these contain specific details relevant to You andcan affect the cover.

Headings are included for reference purposes only anddo not form part of Your Policy for interpretation.

Applying for cover

When You apply for the Policy, We or Ourrepresentative will confirm with You:• the covers You require (including the property You

wish to cover, the limits You require for certaincovers (if optional), whether any third parties willbe noted as having an interest, and the Excessesthat You must contribute for certain claims) – Weonly cover You for those Policy Sections shown ascovered on Your Schedule up to the relevantspecified limits.The maximum amount We will pay will not exceedthe Sum Insured or the Limit of Indemnity for therelevant Policy Sections shown as insured on YourSchedule.

The Policy sets out the cover We provide. You needto decide if the limits, type and level of cover areappropriate for You and will cover Your potentialloss. If they are not, You may be underinsured andhave to bear part of any loss Yourself.

You should also read the GST Notice in the“General conditions applicable to all Sections of thisPolicy” section to understand how GST is appliedto a claim;

• whether any standard terms need to be varied (thismay be by way of an endorsement);

• the Period of Insurance;• Your premium – the base premium We charge is

calculated based on a number of factors such as:– Your risk profile and the ratings We apply to

Your profile (e.g. where the Property Insured issituated, the type of property being insured, thecover and limits required, other persons beinginsured and Your insurance history etc). In

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some cases, discounts may apply if You meetcertain criteria We set;

– certain costs incurred by Us in relation to theTerrorism Insurance Act;

– Our obligation to pay relevant governmenttaxes and charges. For example, We include anamount that covers stamp duty and GSTpayable in relation to the Policy. We alsoinclude an amount estimated to cover Ourobligation to pay any applicable governmentFire Service Levy in relation to the Policy. Theseamounts are specified separately in theSchedule We issue.

In some cases a service fee will apply where Youselect to pay Your premium by instalments. We tellYou the total amount payable when You apply andwhen and how it can be paid. This is confirmed inthe Schedule We issue to You.

If You pay Your premium by instalments, refer tothe “General conditions applicable to all Sections ofthis Policy” section for important details on Yourand Our rights and obligations. Note that aninstalment premium outstanding for 14 days mayresult in Our refusal to pay a claim.

The above details are recorded in the Schedule Weissue to You after cover is entered into.

Cooling off and cancellation rights

You have cooling off and cancellation rights (see the“General conditions applicable to all Sections of thisPolicy” section on page 19 for details).

Basis on which We insure You

We agree to insure You:• based on the information provided in Your Proposal

and subject to payment of the required premium bythe required date.

• in accordance with the Policy terms and conditions– Your Policy is made up of Your Proposal, thisPolicy Document, the Schedule and any writtenendorsements We issue to You. You should carefullyread all of these as if they are one document andkeep them in a safe place.

If You require further information about the Policy orwish to confirm a transaction, please refer to thecontact details provided on Your insurance Schedule.

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Your Duty of Disclosure

Before You enter into an insurance contract with Us,the Insurance Contracts Act 1984 requires You toprovide Us with the information We need to enable Usto decide whether and on what terms Your Proposal forinsurance is acceptable and to calculate how muchpremium is required for Your insurance.

The Act imposes a different duty the first time Youenter into the Policy with Us to that which applieswhen You renew, vary, extend, reinstate or replaceYour Policy. We set these two duties out below.

Your Duty of Disclosure when You enter into thisPolicy with Us for the first time

You will be asked various questions when You firstapply for this Policy. When You answer these questions,You must:• give Us honest and complete answers,• tell Us everything You know, and• tell Us everything that a reasonable person in the

circumstances could be expected to tell Us.

Your Duty of Disclosure when You renew, vary,extend, reinstate or replace Your Policy

When You renew, vary, extend, reinstate or replace thePolicy, Your duty is to tell Us before the renewal,variation, extension, reinstatement or replacement ismade, every matter known to You which:• You know, or• a reasonable person in the circumstances could be

expected to know, is relevant to Our decision whether to insure You andwhether any special conditions need to apply to YourPolicy.

What You do not need to tell Us for either duty

You do not need to tell Us about any matter:• that diminishes Our risk,• that is of common knowledge,• that We know or should know as an insurer, or• that We tell You We do not need to know.

Who do the two duties above apply to?

Everyone who is insured under the Policy must complywith the relevant duty.

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What happens if You or they do not comply witheither duty?

If You or they do not comply with the relevant duty,We may cancel the Policy or reduce the amount Wepay if You make a claim. If fraud is involved, We maytreat the Policy as if it never existed and pay nothing.

Privacy information

We are required to comply with state and federalprivacy legislation, which covers the collection,handling, storage and disclosure of Your personalinformation (including sensitive information).

In the course of providing products and services,Allianz may, in certain circumstances, disclose Yourpersonal information (including sensitive information)to third parties (such as other insurers, reinsurers, lossadjusters, external claims data collectors, Youremployer, insurance reference bureaus, investigators,and agents or other parties as required by law) in orderto:

• decide whether to issue a policy;

• determine the terms and conditions of a policy;

• compile data;

• assess and verify Your current and subsequentinsurance applications and details;

• create, underwrite, price and issue a policy;

• administer and maintain a policy; and

• investigate, verify, assess, manage and pay a claim.

If You do not provide the relevant personal informationWe may not be able to do business with You.

Where You provide Allianz with personal informationabout other individuals, You must be authorised toprovide that information and agree to inform them ofthe information contained within this privacystatement.

Allianz aims to ensure that Your personal information isaccurate, up to date and complete. Please contact Uson 13 2664 EST 8am-6pm, Monday-Friday if Youwould like to seek access to this information or inorder to revise any information We have on record thatis incorrect or incomplete. If You have any issuesregarding the way Allianz has handled Your personalinformation You may contact Us. All complaints are

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managed through Our internal Privacy ComplaintProcedure. Should You wish to obtain furtherinformation about Allianz’s privacy policies, pleasecontact Us on 13 2664 and ask for a copy of Our“General Insurance Information Privacy Code” booklet.

From time to time We may advise You of other Allianzproducts or services that may be relevant or of interestto You. If You do not wish to receive this advice, pleasecall Us on 13 2664 EST 8am-6pm, Monday-Friday orindicate Your decision in the appropriate area of theprivacy section of Our website at www.allianz.com.au.

General Insurance Code of Practice

The General Insurance Code of Practice was developedby the Insurance Council of Australia to further raisestandards of practice and service across the insuranceindustry. We keenly support the standards set out inthe Code. You can obtain more information on theCode of Practice and how it assists You by contactingUs on 13 2664 EST 8am-6pm, Monday-Friday.

Dispute resolution process – helping You solveany problems

Complaints or disputes are not an everyday occurrenceat Allianz. We strive to do things the right way andkeep Our customers happy.

Sometimes though, complaints or disputes do occurand when this happens, Our objective is to resolve anydisagreement as amicably and as quickly as possible.We believe the best way to achieve this is to provideYou with an opportunity for an unbiased review of theissue.

Here is what to do if a complaint or dispute arises

Regardless of whether the complaint or disputeinvolves Our staff, an agent, loss adjuster, assessor,investigator or the service We provide, simply contactUs on 13 2664 EST 8am-6pm, Monday-Friday, speak toone of Our call centre operators and provide them withthe details of the issue concerning You. They willattempt to resolve the complaint or dispute; if they areunable to do so they will log it and refer it to theappropriate business unit for resolution.

Within Our organisation We have established acomplaints and disputes resolution process. This is afree service. It is a system designed to log, track,

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escalate and monitor complaints received from clientsand customers about Our services and products. A staffmember involved in the complaints and disputesresolution process will write to You within 15 workingdays advising the outcome of the review and reasonsfor their decision. We do not consider a complaint ordispute to be resolved until a proposed resolution orsolution has been communicated to You and You haveaccepted the resolution or solution.

If You are not satisfied with the outcome ofthis processIf We are unable to resolve the complaint or dispute,We will offer You the option of referring the matter tothe insurance industry’s external independentcomplaints scheme (subject to eligibility). The schemewill only review complaints or disputes if they havegone through our internal complaints and disputesresolution process.

If this insurance has been issued through aninsurance intermediary

If Your Policy has been issued through Our agent, or abroker who is acting under an agency arrangementsuch as a binder with Us, then they are acting as Ouragent and not as Your agent.

If Your Policy has been issued by a broker, other than abroker acting under such an agency arrangement withUs, then the broker is acting as Your agent.

Note: You may purchase insurance through the insurerof Your choice.

Where this Policy has been arranged through anintermediary, a commission is payable by Us to themfor arranging the insurance.

Contact for assistance or confirmation of cover

If You need to confirm any Policy transaction or clarifyany of the information contained in this PolicyDocument or if You have any other queries, please callUs on 13 2664 EST 8am-6pm, Monday-Friday.

Renewal procedure

Before Your Policy expires, We will advise You whetherWe intend to offer renewal of Your Policy. Renewal willbe offered by sending a notice advising the amountpayable to renew the Policy. It is important that You

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check the Sums Insured before renewing each year tosatisfy Yourself that they continue to represent currentfull replacement values, to ensure that You are properlycovered in the event of a major loss.

Terrorism Insurance Act

We have determined that this Policy (or part of it) is apolicy to which the Terrorism Insurance Act 2003applies. We have reinsured Our liability under the Actwith the Commonwealth Government reinsurer, theAustralian Reinsurance Pool Corporation (ARPC).

As a consequence, We are required to pay a premiumto ARPC and that amount (together with the cost ofthat part of the cover provided by Us andadministrative costs associated with the legislation) isreflected in the premium charged to You. As with anyother part of Our premium, it is subject to governmenttaxes and charges such as GST, Stamp Duty and whereapplicable, Fire Service Levy.

For further information contact Allianz or Yourintermediary.

General definitionsThese definitions apply to and should be read inrelation to each of the Policy Sections unless they aredefined differently in the relevant Section.

“Basis of Settlement” means the method by whicha claim is met. This will be either Reinstatement orReplacement or Indemnity according to the methodYou have selected and as specified in the Schedule inthose Sections where a choice is available, or otherwiseas stated in the appropriate Section.

“Business” means the business described in theSchedule, carried on by You or on Your behalf at orfrom the Situation and any trade or occupationincidental to that business.

“Customers’ Goods” means goods and/ormerchandise held by You in trust or on commission.

“Damage(d)” means any physical destruction of ordamage to the Property Insured so as to lessen its valueor any physical loss when such damage is neithercaused by nor arises out of an excluded event.

“Defined Event” means an event shown in the

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individual Section under the heading “Defined Eventsapplicable to this Section”, and for which cover isavailable under that Section only.

“Excess” means either the amount of money specifiedin the Schedule or otherwise stated in the Policy foreach applicable Section that You must contribute as thefirst payment for all claims arising out of one eventspecified in the Schedule or otherwise stated in thePolicy for which no payment will be made by Us.

“Limit of Indemnity” means the amount(s) specifiedin the Schedule as the Sum Insured which will be themaximum amount that We will pay for any one loss orseries of losses arising out of a Defined Event andwhich may be determined after consideration of anyspecial condition or sub-limit contained either in theapplicable Section or as shown as an item in theSchedule. The Limit of Indemnity is inclusive of andnot additional to any applicable Excess.

“Office Contents” means all contents such asfurniture, stationery, computers and communicationsequipment (excluding mobile phones) used in YourBusiness, as stated in the Schedule, whilst at Yourdomestic residence or Situation shown on theSchedule.

“Period of Insurance” means the periodcommencing on the effective date and ending at 4pmon the expiry date as shown in the Schedule.

“Policy” means this document and any endorsement,specification, attachment or memoranda affixed (orintended to be affixed) to it, the Schedule and theProposal.

“Policy Section” or “Section” means any part of thisPolicy numbered and described as a policy section orsection.

“Premises” means within the confines of thebuilding(s) at the Situation.

“Property Insured” means Office Contents, Stock inTrade and Tools of Trade limited to the Sum Insuredstated in the Schedule.

“Proposal” means the application for insurancecompleted by You or on Your behalf by which Youprovided the information upon which We relied toenter into this Policy.

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“Rewriting of Business Records” means the costof restoration of computer records, documents,manuscripts, securities, deeds, specifications, plans,drawings, designs, business books and other records ofevery description.

“Schedule” means the most recently dated scheduleWe have provided to You which specifies importantinformation such as the Policy number, Situation andSections that are in force, the details of the PropertyInsured, the Sums Insured and any Excess payable.

“Situation” means the situation stated in theSchedule.

“Stock in Trade” means:

a. stock in trade, merchandise or raw materials,including the value of work done, containers andpackaging materials;

b. Customers’ Goods and other items held in trust oron commission for which You are liable;

as stated in the Schedule.

“Sum Insured” means the relevant amount shown inthe Schedule as the sum insured.

“Territorial Limits” means anywhere within theCommonwealth of Australia.

“The Insured” means only the person(s) and/orentity(ies) shown in the Schedule as The Insured unlessotherwise stated in the relevant Policy Section as beinga person entitled to cover.

“Tools of Trade” means those implements orappliances used in the Business at work sites for thepurpose of the Business or located at the Premises atthe Situation specified in the Schedule other thanconstruction plant and other vehicles or trailers allbelonging to You or for which You are liable.

“We”, “Us”, “Our”, “Allianz” means AllianzAustralia Insurance Limited ABN 15 000 122 850 of2 Market Street, Sydney, NSW, 2000.

“You”, “Your”, “Yours” means either the person orthe entity named as The Insured in the Schedule.

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General exclusionsapplicable to all Sections ofthis Policy1. The Policy does not cover loss, destruction, liability,

or Damage:

a. Warcaused by, contributed to by or arising from anywar, whether war be declared or not, hostilitiesor rebellion, civil war, revolution, insurrection,military or usurped power, invasion, act offoreign enemy;

b. Nuclearcaused by, contributed to by or arising fromionising radiation or contamination byradioactivity from:

(i) any nuclear fuel or from any nuclear waste;or

(ii) the combustion of nuclear fuel (includingany self-sustaining process of nuclearfission); or

(iii) nuclear weapons material;

c. Lawful seizurecaused by, contributed to by or arising from thelawful seizure, detention, confiscation,nationalisation or requisition of the PropertyInsured;

d. Wilful actscaused by, contributed to by or arising from anyactual or alleged:

(i) dishonest, fraudulent, criminal or maliciousact; or

(ii) wilful breach of any statute, contract orduty; or

(iii) conduct intended to cause loss or Damageor with reckless disregard for theconsequences;

carried out by You or any person acting withYour knowledge, consent or connivance;

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e. Territorial limitsoccurring outside the Territorial Limits exceptas specifically stated otherwise in theappropriate Section.

2. Except as specifically provided otherwise, thisPolicy does not cover:

a. consequential loss of any kind;

b. legal liability to pay compensation or damages;

c. Damage caused by faults or defects known toYou or any employee whose knowledge in lawwould be deemed to be Yours and not disclosedto Us at the time this Policy was entered into.

3. This Policy does not cover any loss or Damage toany appliance, machinery, equipment or otherproperty which is a computer or which contains orcomprises any computer technology (includingcomputer chip or control logic) and which fails toperform or function in the precise manner forwhich it was designed for any reason arising fromthe performance or functionality of such computertechnology (including computer chip or controllogic).

4. TerrorismNotwithstanding any provision to the contrarywithin this Policy or any endorsement thereto, thisPolicy excludes and does not cover death, injury,illness, loss, Damage, cost or expense directly orindirectly caused by, contributed to by, resultingfrom or arising out of or in connection with any Actof Terrorism, as defined herein, regardless of anyother cause or event contributing concurrently or inany other sequence to the loss.

An Act of Terrorism includes any act, or preparationin respect of action, or threat of action designed toinfluence the government de jure or de facto of anynation or any political division thereof, or in pursuitof political, religious, ideological or similar purposeto intimidate the public or a section of the public ofany nation by any person or group(s) of personswhether acting alone or on behalf of or inconnection with any organisation(s) orgovernment(s) de jure or de facto, and which:

(i) involves violence against one or more persons;or

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(ii) involves Damage to property; or

(iii) endangers life other than that of the personcommitting the action; or

(iv) creates a risk to health or safety of the public ora section of the public; or

(v) is designed to interfere with or to disrupt anelectronic system.

This Policy also excludes and does not cover death,injury, illness, loss, Damage, cost or expensedirectly or indirectly caused by, contributed to by,resulting from, or arising out of or in connectionwith any action in controlling, preventing,suppressing, retaliating against, or responding toany Act of Terrorism.

5. Electronic Data

This Electronic Data exclusion is applicable to theGeneral Property Section of the Policy.

a. This Policy Section does not insure:(i) total or partial destruction, distortion,

erasure, corruption, alteration,misinterpretation or misappropriation ofElectronic Data;

(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 forany time or at all,

from any cause whatsoever, regardless of anyother contributing cause or event whenever itmay occur.

Electronic Data means facts, concepts andinformation converted to a form useable forcommunications, display, distribution,interpretation, or processing by electronic orelectromechanical data processing or electronicallycontrolled equipment and includes programmes,software and other coded instructions for suchequipment.

b. However, in the event that a peril listed below(being a peril insured by the relevant PolicySections but for this exclusion) is caused by anyof the matters described in paragraph a. above,

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then the relevant Policy Sections, subject to alltheir provisions, will insure:• physical loss of or Damage or destruction to

Property Insured directly caused by suchlisted peril, and/or

• consequential loss insured by this Policy.

Further, this exclusion does not apply in theevent that a peril listed below (being a perilinsured by the relevant Policy Sections but forthis exclusion) causes any of the mattersdescribed in paragraph a. above

Accidental Damage other than non-physicalDamage, fire, lightning, thunderbolt,explosion, implosion, earthquake,subterranean fire, volcanic eruption, impactby aircraft or aerial object dropped therefrom,impact by road vehicle or animal, sonicboom, theft of Electronic Data soley wheresuch theft is a consequence of theft of anycomputer and/or computer hardware and/orfirmware and/or microchip and/orintegrated circuit and/or similar devicecontaining such Electronic Data, breakage ofglass, the acts of persons taking part in riotsor civil commotions or of strikers or of lockedout workers or of persons taking part inlabour disturbances, storm and/or tempestand/or rainwater and/or wind and/or hail,water and other liquids and/or substancesdischarged and/or overflowing and/orleaking from any apparatus and/or pipes atthe Premises.

c. For the purposes of the Basis of Settlementprovision in these Policy Sections, computersystems records includes Electronic Data asdefined in paragraph a. above.

Any terrorism exclusion in these Policy Sections orany endorsement thereto prevails over thisexclusion.

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Claims procedure andconditions1. Claims procedure

a. As soon as You become aware of anythinghappening which may result in a claim underthis Policy You must, at Your own expense(unless the expense is covered under Claimspreparation expenses below): (i) immediately inform the police of any

malicious Damage, theft, attempted theft orloss of property,

(ii) advise Us as soon as possible, telling Ushow the loss, Damage or liability occurred,

(iii) take all reasonable action to recover lost orstolen property and minimise the claim,

(iv) as far as possible preserve any products,appliances, plant or other items whichmight prove necessary or useful asevidence until We have had an opportunityfor inspection,

(v) give Us all the information, proof andassistance We may require to prosecute,defend or settle Your claim includingdetails of any other insurance effected byYou or on Your behalf,

(vi) as soon as is reasonably practicable afterthe loss or Damage (or any further timewhich We may allow in writing) deliver toUs a written claim containing as detailedan account as is reasonably practicable ofthe circumstances surrounding the loss orDamage and the amount claimed. If Weask You to provide Us with a StatutoryDeclaration You must provide it,

(vii) immediately send Us any claim, writ,summons, or full details of other relevantlegal or other proceedings such as animpending prosecution or inquest Youreceive or become aware of,

(viii)at all times give Us all the information andassistance We may reasonably require.

b. You MUST NOT: (i) admit liability for, or offer, or agree to settle

any claim without Our prior writtenconsent,

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(ii) authorise the repair or replacement ofanything without Our prior written consentunless for safety reasons or to minimise orprevent further imminent loss, Damage orliability.

c. After You have advised Us of any loss orDamage as set out in this condition: (i) You must comply with all the terms of the

Policy including the general conditions andclaims conditions before We will meet anyclaim under this Policy,

(ii) We have the right to recover from anyperson against whom You may be able toclaim any money paid by Us. We will havefull discretion in the conduct, settlement ordefence of any claim in Your name. Theamount recovered will be applied first toreducing the amount by which Your lossexceeds the payment made by Us plus anyExcess applied. Any balance remainingafter You have been fully compensated forYour loss, up to the amount We have paidto You to settle Your claim (including Ourlegal fees for recovery), will be retained byUs,

(iii) We may take over and conduct, in Yourname, the defence or settlement of anyclaim and We will have full discretion inthe conduct of any proceedings inconnection with the claim,

(iv) We may pay You the Sum Insured or Limitof Indemnity under the applicable Sectionor any lesser amount for which a claim orclaims under that Section may reasonablybe settled. After We have paid You, We willno longer be liable for the claim(s) (orfuture conduct of the claim(s)) except forcosts and expenses incurred up until thetime We agreed to pay,

d. If You recover or find any lost or stolen PropertyInsured for which We have paid a claim, Youmust: • tell Us immediately; and

• give Us the recovered or found PropertyInsured if We request You to do so.

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e. If You advise Us of loss or Damage to PropertyInsured, as set out in this condition: (i) We may, or anybody We appoint may:

(a) take or keep possession of the PropertyInsured for the purposes of Ourinvestigations; and

(b) if We accept liability for the loss, sellsuch Property Insured or dispose of it ina reasonable manner;

but You are not entitled to abandon suchProperty Insured to Us. If We take or keeppossession of the Property Insured it willnot be an admission of liability nor will itaffect any of Your obligations under thisPolicy;

(ii) if We elect or become bound to reinstate orreplace any Property Insured, You must atYour own expense produce and give Us allsuch plans, documents, books andinformation as We may reasonably require;

(iii) We will not be bound to reinstate exactlyor completely, but only in a reasonablemanner given the circumstances. In nocase will We be bound to pay, in respect ofany of the Property Insured, more than theSum Insured or Limit of Indemnityspecified in the Schedule.

2. Claims preparation expenses We will pay for costs necessarily and reasonablyincurred for the preparation of a valid claim underthis Policy. The most We will pay is $10,000 or25% of the claim amount otherwise payable,whichever is the lesser.

General conditionsapplicable to all Sections ofthis Policy1. Actions of parties other than the insured

The acts or omissions of: a. a tenant of Yours; or b. the owner of, or another tenant in, the

Building;

which breach any provision of this Policy will notaffect Your entitlement to cover provided that:

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(i) the act or omission was committed withoutYour prior knowledge or complicity, and

(ii) You notify Us of the happening or existenceof the act or omission as soon as Youbecome aware of it, and

(iii) You pay any reasonable extra premiumwhich We require.

2. Cooling off and cancellation rights under thePolicy a. You may cancel and return this Policy at any

time by notifying Us in writing;

b. We have the right to cancel this Policy wherepermitted by law. For example, We can cancel: • if You failed to comply with Your duty of

disclosure, or • where You have made a misrepresentation

to Us during negotiations prior to the issueof this Policy, or

• where You have failed to comply with aprovision of Your Policy, including the termrelating to payment of premium, or

• where You have made a fraudulent claimunder Your Policy or under some othercontract of insurance that provides coverduring the same period of time that OurPolicy covers You, or

• where We agree to accept payment ofpremium by periodic instalment and atleast one instalment remains unpaid inexcess of one month from the date onwhich it was due and payable;

c. If You or We cancel the Policy We may deducta pro rata proportion of the premium for timeon risk, reasonable administrative costs relatedto the acquisition and termination of the Policyand any government taxes or duties We cannotrecover.

d. In the event that You have made a claim underthis Policy and We have agreed to pay the fullSum Insured for Your Property Insured, noreturn of premium will be made for any unusedportion of the premium for the Sections underwhich the full Sum Insured has been paid.

3. Governing law and jurisdictionThis Policy is governed by the laws of Australia.Any dispute relating to this Policy shall be

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submitted to the exclusive jurisdiction of anAustralian Court within the State or Territory inwhich the Policy was issued.

4. GST NoticeThis Policy has a GST provision in relation topremium and Our payment to You for claims. Itmay have an impact on how You determine theamount of insurance You need. Please read itcarefully. Seek professional advice if You have anyqueries about GST and Your insurance.

Sums insured All monetary limits in this Policy may be increasedfor GST in some circumstances (see below).

Claim settlements – Where We agree to pay When We calculate the amount We will pay You,We will have regard to the items below: • Where You are liable to pay an amount for GST

in respect of an acquisition relevant to Yourclaim (such as services to repair a Damageditem insured under the Policy) We will pay theGST amount.

We will pay the GST amount in addition to theSum Insured or Limit of Indemnity or otherlimits shown in the Policy or in the Schedule.

If Your Sum Insured or Limit of Liability is notsufficient to cover Your loss, We will only paythe GST amount that relates to Our settlementof Your claim. We will reduce the GST amountWe pay by the amount of any input tax creditsto which You are or would be entitled.

• Where We make a payment under this Policy ascompensation instead of payment for a relevantacquisition, We will reduce the amount of thepayment by the amount of any input tax creditthat You would have been entitled to had thepayment been applied to a relevant acquisition.

• Where the Policy insures business interruption,We will (where relevant) pay You on Your claimby reference to the GST exclusive amount ofany supply made by Your Business that isrelevant to Your claim.

Disclosure – Input tax credit entitlement If You register, or are registered, for GST You arerequired to tell Us Your entitlement to an input taxcredit on Your premium. If You fail to disclose or

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You understate Your entitlement, You may be liablefor GST on a claim We may pay. This Policy doesnot cover You for this GST liability, or for any fine,penalty or charge for which You may be liable.

5. Interests of other partiesa. The insurable interest of only those lessors,

financiers, trustees, mortgagees, owners and allother parties having a legal interest or chargeover the Property Insured and who arespecifically noted in Your records, shall beautomatically included as third partybeneficiaries without notification orspecification. The nature and extent of suchinterest is to be disclosed to Us in the event ofDamage. Any other people not in this categoryor not named on the Schedule are not coveredand cannot make a claim. All third partybeneficiaries must comply with the terms andconditions of the Policy.

b. Where the protection provided by this Policycovers the interest of more than one party, anyact or omission of an individual party will notprejudice the rights of the remaining parties: (i) subject to General exclusion 1.d. Wilful

acts, and (ii) provided the remaining parties must,

immediately on becoming aware of any actor omission that increases the risk of loss,Damage or liability, give notice in writingto Us and on demand pay any reasonableadditional premium We may require.

6. Your representative – authorisationBy entering into this Policy, You agree that theperson representing You when completing theProposal is authorised to give and receiveinformation on Your behalf in relation to all mattersarising under this Policy and in accordance with theInsurance Contracts Act 1984.

If You do not meet the following conditions, We maybe entitled to cancel the Policy and/or reduce or refuseto pay a claim:

7. Alteration to risk If You become aware of any changes to the facts orcircumstances which existed when this insurancecommenced that change the nature of the risk (for

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example, the nature of Your Business, or othercircumstances that affect the Situation or PropertyInsured) in a way that would increase the risk ofloss or Damage You must notify Us in writing. IfWe agree to the change We will do so in writingand You must pay Us any additional premium Werequire.

8. Non payment of premium by instalments –right to refuse a claim Where You pay Your premium by instalments, Youmust ensure that they are paid on time because ifan instalment has remained unpaid for a period ofat least 14 days, We may refuse to pay a claim. Wewill notify You if an instalment has not been paid.

9. Other insurance You must give Us written notice of any insurancealready effected, or which may be subsequentlyeffected covering, whether in whole or in part, thesubject matter of the various Sections of this Policy.

10.Reasonable care and maintenance You must take all reasonable care: a. to prevent loss, Damage or legal liability; b. to maintain the Property Insured and Premises

in sound condition, in particular to minimise oravoid theft, loss, Damage or liability;

c. to comply with all statutory obligations, by-laws, regulations, public authority requirementsand safety requirements;

d. to minimise any loss or Damage; ande. to only employ competent employees and

ensure they adhere to the requirementsspecified in a. – d. above.

11.Storage of hazardous goods Hazardous goods stored at the Situation by anyperson as part of that person’s business must bestored in quantities and in a manner that ispermitted by relevant laws or regulations.

12.Waiver of subrogation rights We may not be liable to pay any benefits under thisPolicy for loss, Damage or liability if You agree orhave agreed to limit or exclude any right ofrecovery against any third party who would beliable to compensate You with respect to that loss,Damage or liability however:a. We shall waive any rights and remedies or relief

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to which We are or may become entitled undersubrogation against:(i) any co-insured (including directors, officers

and employees);(ii) any corporation or entity (including its

directors, officers and employees) owned orcontrolled by any Insured or against any co-owner of the Property Insured.

b. You may without prejudicing Your positionunder this Policy:(i) released any statutory government, semi-

government or municipal authority fromany liability if required by contract to do so;

(iii) agree to enter into a contract for storage ofgoods or merchandise if the terms of thecontract include a disclaimer clause;

(iv) agree to enter into a lease for occupancy ofany building or part of a building or a leaseor hiring of property where the terms ofthe lease or hiring include a disclaimerclause in favour of the lessor or the owner.

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Section One –General Property

The cover

We will pay You in accordance with the Basis ofSettlement for Damage to any of the Property Insuredshown in the Schedule under this Section that iscaused by a Defined Event which occurs during thePeriod of Insurance.

Definitions applicable to this Section

“Flood” means the inundation of normally dry land bywater overflowing from the normal confines of anynatural watercourse or lake whether or not altered ormodified or of any reservoir, canal or dam.

“Money” means current coin, bank notes, currencynotes, cheques, credit card sales/service vouchers,postal orders, money orders, negotiable and non-negotiable securities and valuable documents, theunused value of postage stamps, revenue stamps,instant lottery tickets (for their face value only),metropolitan transport tickets, phone cards, creditcards, stored-value cards, travellers cheques, pre-paidtravel passes, cab charge vouchers and the contents offranking machines.

Defined Events applicable to this Section

Part A – Accidental damage

Any sudden or unexpected or unforeseen occurrencenot otherwise excluded.

Part B – Restricted cover

If the Schedule shows You have selected “RestrictedCover” under this Section, the Defined Events underthis Section will be limited to:

1. fire (whether resulting from explosion orotherwise);

2. collision and/or overturning of the conveyingvehicle; and

3. Flood.

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Basis of Settlement applicable to this Section

The Basis of Settlement will be:

1. where Damage to Property Insured can be repaired,the reasonable cost of restoring the Damaged itemto its former working order. If You complete therepairs Yourself We will pay the reasonable cost ofmaterials and wages as well as a reasonableallowance to cover any overheads.

2. where a Damaged item is not repaired:

a. for items that could not be repaired, theirreplacement with similar items in a conditionequal to, but not better or more extensivethan the condition of the original items whennew; or

b. for items that could be repaired but have beenreplaced, the estimated cost that would havebeen incurred for necessary repairs to returnthe Damaged items to their former state ofserviceability.

We will not pay more than $2,000 for any item notspecifically listed in the Schedule.

We will not pay more than the Sum Insured shown foreach item in the Schedule for any one event.

Excess

We will not pay the first $250 of any claim arising outof any one event, or the amount shown in theSchedule as the Excess for this Section, whicheveramount is the greater.

Additional benefit applicable to this Section

Rewriting of Business Records

Consequent upon a claim being admitted for loss orDamage to Office Contents following a Defined Eventoccurring, We will, subject to the extent that the SumInsured on Office Contents is not otherwise exhausted,pay the cost of repairing, replacing, or restoring YourBusiness Records, including the information containedon or in them, but excluding the value to You of thatinformation. If repair, replacement, reproduction orrestoration is not required, We will only pay thereplacement cost of the materials as blank stationerycalculated at the time and place of the Damage,provided that replacement will have been carried outwith reasonable despatch.

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Specific exclusions applicable to this Section

We will not pay for:

1. Damage to Property Insured outside the TerritorialLimits.

2. loss or Damage to Stock in Trade which has beenpermanently transferred to the site, commencingfrom the time the Stock in Trade would be deemedto be insured under any other form of ContractWorks Insurance Policy covering the contract onwhich You are working.

3. Damage caused by or arising directly or indirectlyout of or in any way connected with:

a. spontaneous combustion, fermentation, heatingor any process involving the direct applicationof heat, deterioration and putrefaction ofrefrigerated goods;

b. action of the sea or tidal wave;

c. Flood, other than for Damage to PropertyInsured from Flood when contained in a motorvehicle;

d. theft other than theft resulting from forcible andviolent entry evidenced by visible Damage to:

(i) the securely locked portion of any buildingcontaining the Property Insured, or

(ii) the securely locked portion of any vehiclecontaining the Property Insured, or

(iii) a locked container secured to a vehicle.

Where You have selected “Restricted Cover”under this Section, We will not pay for Damagecaused by theft;

e. theft of property in the open air;

f. fraud or dishonest acts, embezzlement, forgery,erasure, counterfeiting and fraudulentmisappropriation by electronic means orotherwise;

g. (i) unexplained inventory shortages ordisappearances, or

(ii) shortages in the supply or delivery ofmaterials to or from You,

(iii) loss induced by deception;

h. loading or unloading, delivery or dispatch;

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i. demolition;

j. testing, intentional overloading or experiments;

k. any process of heat treatment, welding,grinding, cutting, drilling, shaping or theapplication of tools to the Property Insured;

l. Damaged or faulty doors, lids, catches, latches,locks or any door lid closing or securingmechanism or device;

m. faulty packing, storage, inherent defect ordisease;

n. mechanical, hydraulic, electrical or electronicbreakdown, failure, malfunction orderangement of any machine or electrical orelectronic device or temperature-controllingequipment;

o. moths, termites or other insects, vermin, rust oroxidation, mildew, mould, contamination orpollution, wet or dry rot, corrosion, change ofcolour, dampness, light, variations in orextremes of temperature, evaporation, disease,inherent vice, latent defect, change in flavour,texture or finish, or smut or smoke fromindustrial operations;

p. wear and tear, fading, scratching or marring,chipping or denting, gradual deterioration,developing flaws, normal upkeeping or makinggood;

q. data processing or media failure or breakdown,or malfunction of a processing system, includingoperator error or omission, or computer virus.

4. Damage caused to:

a. motor vehicles, caravans, trailers, motorcycles,watercraft, aircraft or aerial devices or theaccessories (whether fitted or otherwise) of orto any of these;

b. Property Insured during the course of and asthe result of its processing;

c. Property Insured in the course of construction,erection, renovation or demolition;

d. (i) Money,

(ii) glass or items of a brittle nature,

Provided that where the Property Insured isStock in Trade and Damage results from

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either fire, theft, or where in transit and theStock in Trade is adequately packed andsecured, caused by collision, overturning orjack-knifing of the conveying vehicle, thisexclusion 3.d.(ii) will not apply,

(iii) jewellery, furs, bullion, precious metals orprecious stones,

(iv) curios or works of art,

(v) mobile phones, photographic equipment,computer equipment unless specified in theSchedule, or

(vi) any guns, sporting equipment or musicalinstruments while they are in use;

e. Property Insured in the open air caused bywind, rainwater or hail unless such property isdesigned to function without the protection ofwalls or roofs;

f. Property Insured should it be lost or Damagedduring use or recovery underground,underwater or in a location from which itcannot be economically recovered;

g. livestock, animals, birds or fish;

h. standing timber, growing crops and pastures;

i. land;

j. Property Insured due to the stopping of work intotal or in part, or the interruption or retardingof any process or operation as a result of strikes,labour disturbances or locked out workers.

Specific conditions applicable to this Section

Reinstatement of Sum Insured

In the event of Damage insured under this Section ofthe Policy the amount by which the Sum Insured orLimit of Indemnity is reduced in consequence of theloss or Damage will be automatically reinstated as fromthe date of loss or Damage provided that:

a. there is no written request from You or writtennotice by Us to the contrary;

b. this Section is an operative Section of the Policy;and

c. You pay the premium which We require for thereinstatement.

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Provided further, however, that notwithstanding theamount of the loss or Damage the automaticreinstatement will be made once during the Period ofInsurance. Any subsequent reinstatement or variationof this Section will only be considered on request andon such terms that may be mutually agreed upon.

Alarm condition

If a security alarm system is installed in the Premises orto the vehicle conveying the Property Insured thefollowing conditions apply:

a. the security alarm system must be well maintainedand in good working condition at all times;

b. the security alarm system must be made operativewhenever the Premises are left unoccupied orwhen the conveying vehicle is left unattended;

c. if the security alarm system relies upon eitherelectricity or communication services to operate inthe correct manner, electricity and communicationservices must be connected to the security alarmand operational at all times unless the power supplyhas failed due to unforeseen circumstances beyondYour control.

We will not be liable for Damage if You do not complywith these conditions.

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Section Two – Public andProducts Liability

The cover

This Section insures all amounts which You becomelegally liable to pay as compensation for Personal Injuryand/or Property Damage occurring within theTerritorial Limits as a result of an Occurrence inconnection with Your Business, up to the Limit ofIndemnity stated in the Schedule.

Definitions applicable to this Section

“Aircraft” means any vessel, craft or device made orintended to fly or move in or through the atmosphereor space.

“Employment Practices” means any wrongful orunfair dismissal, denial of natural justice, defamation,misleading representation or advertising, sexualharassment or discrimination in respect of employmentby You.

“Excess” means either the amount of money specifiedin the Schedule or otherwise stated in Your Policy thatYou must pay or contribute as the first payment foreach occurrence including supplementary payments.

“Hovercraft” means any vessel, craft or device madeor intended to float on or in or travel on or through theatmosphere or water on a cushion of air provided by adownward blast.

“Incidental Contracts” means:

a. any written rental agreement or lease of realproperty which does not impose on You:

(i) an obligation to insure such property, or

(ii) any liability regardless of fault;

b. any written contract with any public authority forthe supply of water, gas or electricity but only tothe extent of indemnifying any such authority inrespect of liability arising out of Your Business andexcepting contracts for the performance of work orprovision of services by You.

“Medical Persons” means legally qualified medicalpractitioners, legally qualified, enrolled and registerednurses, dentists and first aid attendants.

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“Occurrence” means an event including continuousor repeated exposure to substantially the same generalconditions which results in Personal Injury or PropertyDamage neither expected nor intended by You. Alloccurrences of a series consequent upon or attributableto one source or originating cause are deemed to beone Occurrence.

“Personal Injury” means:

a. death, bodily injury, sickness, disease, disability,shock, fright, mental anguish and mental injury;

b. (i) false arrest, wrongful detention orimprisonment, malicious prosecution,

(ii) wrongful eviction,

(iii) assault or battery,

(iv) libel, slander, defamation of character orinvasion of right of privacy,

which occurs during the Period of Insurance.

In the event of Personal Injury claims arising fromlatent injury, latent disease, latent sickness or latentdisability, such injury, disease, sickness or disability inrespect of each claim shall be deemed to have occurredon the day such injury, disease, sickness or disabilitywas first medically diagnosed.

“Pollutants” means any solid, liquid, gaseous orthermal irritant or contaminant, including but notlimited to smoke, vapour, soot, fumes, acids, alkalis,chemicals or waste. Waste includes material to berecycled, reconditioned or reclaimed.

“Property Damage” means:

a. physical Damage to, physical loss of or physicaldestruction of tangible property that occurs duringthe Period of Insurance including any resultant lossof use; or

b. loss of use of tangible property that has not beenphysically Damaged, physically lost or physicallydestroyed provided such loss of use is caused byphysical Damage to, physical loss of or physicaldestruction of other tangible property that occursduring the Period of Insurance.

“Territorial Limits” means:

a. anywhere within Australia or its external territories;

b. elsewhere in the world but only in respect of:

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(i) travelling executives or salespeople who arenormally resident in Australia,

(ii) Your Products exported to anywhere in theworld except the United States of America orCanada or any country, territory or protectorateto which the laws of the United States ofAmerica or Canada apply.

“Tool of Trade” means a Vehicle which has any toolor plant forming part of or attached to or used inconnection with it while such tool or plant is inoperation for the purpose of the Business, but does notinclude:

a. Vehicles while in transit to or from or within anyplace of work; or

b. Vehicles used for transport or haulage.

“Underground Services” means, but is not limitedto, any underground property or structure made orintended to store, convey, transport, transmit, deliverelectricity, water, sewage, gas, fuel, telecommunicationsmedia, signals, radio and other waves.

“Vehicle” means any type of machine on wheels or onself laid tracks made or intended to be propelled byother than manual or animal power and any trailer orother attachment made or intended to be drawn by anysuch machine.

“Watercraft” means any vessel, craft or thing (otherthan a Hovercraft) made or intended to float on or in ortravel on or through water.

“Worker” means any person employed by You ordeemed to be employed by You pursuant to any law.

“Workers’ Compensation Law” means any lawrelating to compensation for injury to Workers oremployees.

“You”, “Your”, “Yours” means:

a. The Insured shown in the Schedule;

b. any subsidiary companies of a. above, existing atthe commencement date of the Period of Insuranceas shown in the Schedule, whose place ofincorporation is within Australia or its externalterritories;

c. (i) any company acquired by, and whoseoperations are controlled and managed by, TheInsured shown in the Schedule or a company

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referred to in b. above during the Period ofInsurance as a result of consolidation, merger orpurchase;

(ii) any subsidiary company that is incorporated byThe Insured shown in the Schedule or by acompany referred to in b. above, during thePeriod of Insurance;

Provided that:

(i) any such acquisition or incorporation is notifiedto Us within 90 days;

(ii) the newly acquired or incorporated companyconducts the same type of business as YourBusiness; and

(iii) the newly acquired or incorporated company isincorporated within Australia or its externalterritories;

d. (i) any director, executive officer, employee orpartner of The Insured shown in the Scheduleor a company referred to in b. or c. above, butonly while acting within the scope of theirduties in such capacity; and

(ii) any shareholder of a company referred to in a.,b. or c. above, but only while acting within thescope of their capacity as shareholders of suchcompany;

e. any principal in respect of the liability of suchprincipal arising out of the performance by TheInsured shown in the Schedule or a companyreferred to in b. or c. above, of any contract oragreement for the performance of work for suchprincipal but only to the extent required by suchcontract or agreement, and limited always to theextent of cover and Limit of Indemnity provided inthis Policy Section;

f. any office bearer or member of a social and/orsporting club formed with the consent of any of theparties in a., b., c. or d. (above).

“Your Products” means anything (after it has ceasedto be in Your physical possession or under Your control)manufactured or deemed to have been manufactured,constructed, grown, extracted, produced, processed,assembled, erected, installed, repaired, serviced,treated, sold, supplied (including services) ordistributed by You including any container (other thana Vehicle).

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Limit of Indemnity and Excess applicable tothis Section

The Limit of Indemnity is the amount stated in theSchedule. This is the maximum amount We will pay inrespect of any one Occurrence provided that, for alllegal liability directly or indirectly arising out of YourProducts, Our total aggregate liability during any onePeriod of Insurance will not exceed the Limit ofIndemnity.

You must pay the amount shown in the Schedule asthe Excess in respect of each claim for PropertyDamage.

Supplementary payments

Subject to the provisos below, in addition to the Limitof Indemnity, We will also make the followingsupplementary payments:

a. all charges, expenses and legal costs incurred by Usand/or by You with Our prior written consent inthe investigation, reporting, settlement or defenceof any claim or suit for compensation for which:

(i) You are entitled to cover under this Policy, or

(ii) You would be entitled to cover under thisPolicy if such claim or suit were to besustained;

b. all legal costs taxed against You in any such suit orclaim and all interest on the judgement orsettlement amount accruing after the entry ofjudgement against You until We have paid,tendered or deposited in court such part of thejudgement as does not exceed the Limit ofIndemnity;

c. all expenses incurred by You for providing first aidto others for Personal Injury for which You arecovered by this Policy (other than medical expensesprohibited by law);

Provided that:

(i) if a payment exceeding the Limit of Indemnity hasbeen made or is required to be made to dispose of aclaim, Our liability to make supplementarypayments will be limited to the proportion of thesupplementary payments as the Limit of Indemnitybears to the amount paid or required to be paid to

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dispose of the claim. Where the application of thisclause means that You are liable to repaysupplementary payments to Us, We may set off theamount that You owe Us against any otherentitlements You have under this Policy,

(ii) supplementary payments in connection with claimsmade and/or actions instituted against You withinthe United States of America or Canada or claimsand actions to which the laws of the United Statesof America or Canada apply will form part of theLimit of Indemnity and not be additional to it.

Specific exclusions applicable to this Section

This Section does not cover any actual or allegedliability:

1. Aircraft, Hovercraftarising directly or indirectly out of or in any wayconnected with:

a. the ownership, possession, maintenance, repair,operation or use by You or on Your behalf; or

b. any of Your Products which are incorporatedinto the structure, machinery or controls;

of any Aircraft or Hovercraft.

2. Asbestosarising directly or indirectly out of, resulting fromor in consequence of, or in any way involvingasbestos, or any materials containing asbestos inwhatever form or quantity.

3. Assault and batteryarising directly or indirectly out of or in any wayconnected with assault and/or battery committedby You or at Your direction.

This exclusion 3. will not apply when such assaultand/or battery is committed for the purpose ofpreventing or eliminating danger to persons orDamage to property.

4. Contractual liabilityassumed under any contract or agreement.

This exclusion 4. does not apply to:

a. liability that would have been implied by law inthe absence of such contract or agreement;

b. liability assumed by You under a warranty offitness or quality regarding Your Products;

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c. those written contracts shown in the Schedule;

d. liability assumed under Incidental Contracts.

5. Defamation, libel and slanderarising directly or indirectly out of or in any wayconnected with, the publication or utterance of anylibellous, slanderous, defamatory or disparagingmaterial:

a. made prior to the commencement of the Periodof Insurance;

b. made at Your direction or with Your authorityand with knowledge of its falsity; or

c. related to advertising, broadcasting, telecastingor publishing activities conducted by You or onYour behalf.

6. Defect in designarising directly or indirectly out of or in any wayconnected with, any defective design or error inspecification or formula in any of Your Products.

Exclusion 6. shall not apply in respect of anydesign, specification or formula in any of YourProducts, which was not provided for a fee.

7. Demolitionarising directly or indirectly out of or in any wayconnected with the demolition of any building orstructure by You or on Your behalf where thebuilding or structure exceeds 10 metres in height.

8. Employer’s liabilitya. for Personal Injury to any Worker, if You are

required by law to insure or otherwise fund,whether through self insurance, statutory fundor other statutory scheme, all or part of anycommon law liability (whether limited or not)for such Personal Injury; or

b. imposed by:

(i) any Workers’ Compensation Law;

(ii) the provisions of any industrial award oragreement or determination or any contractof employment or workplace agreementwhere such liability would not have beenimposed in the absence of such industrialaward, agreement or determination;

(iii) any law relating to Employment Practices.

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9. Erections, alterations and additionsarising directly or indirectly out of or in any wayconnected with, the construction, erection,alteration, demolition of and/or addition tobuildings by You or on Your behalf.

This exclusion 9. will not apply to alteration of oradditions to buildings owned and/or occupied byYou where the cost of such alterations or additionsdoes not exceed $500,000.

10.Excavationarising directly or indirectly out of or in any wayconnected with excavation works by You or onYour behalf where the depth of such excavationexceeds 3.5 metres in depth.

11.Faulty workmanshipfor the costs or expenses incurred in performing,completing, correcting or improving any work orservice undertaken or provided by You or on Yourbehalf.

12.Loss of usefor loss of the use of tangible property (not havingbeen physically Damaged or destroyed) arisingdirectly or indirectly out of or in any wayconnected with:

a. a delay in or lack of performance by You or onYour behalf in relation to any contract oragreement; or

b. the failure of Your Products to meet the level ofperformance, quality, fitness or durabilityexpressly or impliedly warranted or representedby You.

This exclusion 12.b. does not apply to the lossof use of other tangible property resulting fromthe sudden and accidental physical Damage toor destruction of Your Products after suchproducts have been put to use by any person ororganisation other than You.

13.More specific policyfor which Indemnity is provided, or would havebeen provided but for any applicable deductible orExcess, under a more specific policy shown as suchin the Schedule.

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14.Participationfor Personal Injury to any person or PropertyDamage to the property of any person arisingdirectly or indirectly out of or in any wayconnected with, the actual participation of suchperson in any sport, exercise or activity such as butnot limited to aerobics, athletics, football, aquatic,aerial or equestrian activity.

The term “participation” as used in this exclusionincludes the participation, training or practice for,supervision or control of such activities.

This exclusion 14. does not apply to Personal Injuryor Property Damage, caused by any fault or defectin equipment provided by You at any locationowned and/or occupied by You for the purpose ofYour Business.

15.Penalties, liquidated damages, punitive,exemplary and/or aggravated damagesfor fines or penalties imposed by law or liquidateddamages or punitive, exemplary and/or aggravateddamages and/or any additional damages resultingfrom the multiplication of compensatory damages.

16.Pollutionarising directly or indirectly out of or in any wayconnected with:

a. the actual, alleged or threatened discharge,dispersal, release or escape of Pollutants;

This exclusion 16.a. will not apply to liabilityfor Personal Injury or Property Damage wheresuch discharge, dispersal, release or escape iscaused by a sudden, identifiable, unintendedand unexpected happening which takes place inits entirety at a specific time and place;

b. testing, monitoring, clean-up, removal,containment, treatment, detoxifying orneutralising of Pollutants whether or not any ofthe foregoing are or should be performed byYou or by others;

c. the actual, alleged or threatened discharge,dispersal, release or escape of Pollutants causedby any of Your Products being used or that havebeen discarded, dumped, abandoned or thrownaway by others; or

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d. the actual, alleged or threatened discharge,dispersal, release or escape of Pollutants in theUnited States of America or Canada or in anycountry to which the laws of the United Statesof America or Canada apply.

17.Product defectfor Property Damage to Your Products if suchProperty Damage arises directly or indirectly out ofor is in any way connected with:

a. any defect in them or their harmful nature;

b. their unsuitability for the purpose for whichthey were intended; or

c. their inherent vice or inefficiency orineffectiveness.

18.Product recallarising directly or indirectly out of or in any wayconnected with, the removal, withdrawal, recall,inspection, repair, reconditioning, replacement orloss of use of Your Products or any property ofwhich such Products form a part if they arewithdrawn from the market or from use because ofany known or suspected defect or deficiency inthem.

19.Professional liabilityarising directly or indirectly out of or in any wayconnected with the provision by You or anyone onYour behalf to provide professional advice or anyerror or omission connected therewith.

Provided that this exclusion 19. does not apply to:

a. the rendering of or failure to render medicaladvice by Medical Persons employed by You toprovide first aid and other medical services onYour Premises, other than where Your Businessinvolves the provision of professional medicalservices or advice (which includes dental andveterinary services and advice) and theprovision or sale of medication or other medicalequipment, prosthetics, aids or devices of anydescription; or

b. Personal Injury or Property Damage where suchprofessional advice is not given for a fee.

20.Property in physical or legal controlfor Property Damage to:

a. property owned by or leased or rented to You;

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b. property in Your physical or legal control.

Provided that this exclusion 20. will not apply toliability for Property Damage to:

(i) buildings which are leased or rented to You;

(ii) buildings, including their contents, not owned,leased or rented to You but temporarilyoccupied by You for the purpose of carryingout work in connection with Your Business,but We will not pay for Property Damage tothat part of the property on which You are orhave been working which arises out of suchwork;

(iii) Vehicles (not belonging to or used by You oron Your behalf) in Your physical or legal controlwhere such Property Damage occurs while anysuch Vehicles are in a car park which is notowned or operated for reward by You as part ofYour Business;

(iv) property belonging to visitors or Youremployees; or

(v) other property in Your physical or legal control(except for that part of any property that isundergoing any process or is being workedupon where Property Damage arises out of suchprocess or work) for which You have notassumed any responsibility to obtain insurance.

Our liability under this proviso (v) will belimited to $100,000 in the aggregate in respectof any one Period of Insurance, unless a higheramount is shown in the Schedule, and will besubject to the Excess shown in the Schedule.

21.Smokingfor any Personal Injury arising directly or indirectlyout of or in any way connected with, the inhalationor ingestion of or exposure to:

a. tobacco or tobacco smoke; or

b. any ingredient or additive present in anyarticles, items or goods which contain orinclude tobacco.

22.Technology, information and the Internetarising directly or indirectly out of or in any wayconnected with Your Internet Operations.

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This exclusion does not apply to liability otherwisecovered by this Policy which would have arisenirrespective of Your Internet Operations.

Internet Operations includes but is not limited to,the following:

a. use of electronic mail systems by You or Youremployees, including part-time and temporarystaff, and others acting on Your behalf;

b. access through Your network to the world wideweb or a public internet site by You or Youremployees, including part-time and temporarystaff, and others acting on Your behalf;

c. access to Your intranet (meaning internalcompany information and computing resources)which is made available through the worldwide web for Your customers or others outsideYour organisation; and

d. the operation and maintenance of Your website.

Nothing in this exclusion shall be construed toextend coverage under this Section to any liabilitywhich would not have been covered in the absenceof this exclusion.

23.Tree fellingarising directly or indirectly out of or in any wayconnected with tree felling, or lopping by You or onYour behalf where the tree exceeds 3.5 metres inheight.

24.Vehiclesarising directly or indirectly out of or in any wayconnected with, the ownership, possession,operation or use by You or on Your behalf of anyVehicle:

a. which is registered or is required under anylegislation to be registered;

This exclusion 24.a. will not apply to:

(i) liability for Personal Injury or PropertyDamage arising beyond the limits of anycarriageway or thoroughfare or caused bythe loading or unloading of any Vehicle ortrailer;

(ii) liability for Personal Injury and/or PropertyDamage arising from the use of any Vehicleas a Tool of Trade;

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We will not be liable for any claim for damageto Underground Services and/or their contents,nor any consequential loss arising therefrom,unless, prior to the commencement of work,You have inquired with the relevant authorities,or owners of such services, as to the exactlocation of such Underground Services, tracedtheir existence and indicated their location in-situ.

You will be liable for the first $1,000 or suchother amount as may be shown in theSchedule, for each and every claim for damageto Underground Services;

b. where such liability is required by virtue of anylegislation to be insured under a policy of bodilyinjury insurance.

25.Watercraftarising directly or indirectly out of or in any wayconnected with, the ownership, maintenance,possession, operation or use by You or on Yourbehalf of any Watercraft, the hull of which exceeds8 metres in length except where such Watercraftare owned and operated by others and used by Youfor business entertainment.

26.Weakening of support arising directly or indirectly out of or in any wayconnected with, vibration, restumping,underpinning, dewatering or removal or weakeningof and/or interference with support to land,buildings or any other property.

27.Welding and allied processesarising directly or indirectly out of or in any wayconnected with, You or other persons working onYour behalf not having complied with theAustralian Standard 1674.1-1997 “Safety inwelding and allied processes - Fire precautions” asset out in the Standard or as amended wheninvolved in welding, thermal or oxygen cutting orheating or other related heat-producing or spark-producing operations.

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Specific conditions applicable to this Section

1. Cross liabilityWhere You are comprised of more than one entity,the term “You” will be considered as applying toeach entity in the same manner as though a separatepolicy had been issued to each entity, provided thatOur Limit of Indemnity and liability to makesupplementary payments will apply as though therewere not separate policies issued to each entity.

2. Discharge of liabilitiesWe may at any time pay to You or on Your behalf inrespect of all claims against You:

a. the amount of the Limit of Indemnity (afterdeduction of any sum or sums already paid byUs); or

b. any lesser sum for which the claim or claimsmay be settled.

Upon such payment We will relinquish conduct orcontrol of the defence of all claims against You andbe under no further liability under this Policy inconnection with such claim or claims.

Provided that We will pay for costs, charges andexpenses recoverable from You in respect of theperiod prior to the date of such payment (whetheror not this is pursuant to an order madesubsequently) or incurred by Us or by You with Ourwritten consent prior to the date of such payment.

3. Premium adjustmentIf the premium for this Policy has been calculatedon the basis of any estimates given by You, Youmust keep accurate records containing all relevantparticulars and at any reasonable time allow Us toinspect such records.

Following the expiry of each Period of InsuranceYou must supply Us with such records as We mayreasonably require so that the premium for thatperiod may be calculated. Subject to any minimumpremium applicable, the difference must be paid byor will be allowed to You as the case may be.

4. Reasonable care and maintenanceYou must:

a. take reasonable precautions to prevent themanufacture, sale or supply of defectiveproducts;

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b. at Your expense, take reasonable action totrace, recall or modify any products containingany defect or deficiency which defect ordeficiency You have knowledge of or havereason to suspect.

If You do not meet the above condition, Wemay cancel the Policy and/or reduce or refuseto pay a claim.

5. Applicable lawAny phrase or word in this Section and Schedulewill be interpreted in accordance with the law ofthe Commonwealth of Australia.

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For all enquiries please call Allianz on 13 1000 or talk to your broker

allianz.com.au

Allianz Australia Insurance LimitedAFS Licence No. 234708ABN 15 000 122 8502 Market Street Sydney NSW 2000 PO

L063

BA/F

I 10/

07

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