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NurseryCareInsurance for Day Nurseries

Policy

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NurseryCare Policy

We are pleased to welcome you as a policyholder of Sterling Insurance Company Limited.

This policy is evidence of the contract which you have made with us andthe completed proposal form incorporating the declaration which you have signed and any other information provided by you inaddition to the proposal or in substitution thereforORthe information you have supplied and the application for insurance you have made electronically (hard copy of same is enclosedwith this policy) and any other information provided by you in addition to or in substitution therefore is the basis of the contract.

What forms your contract of insurance:• the application for insurance completed by you or on your behalf (Proposal Form, Statement of Fact or electronic application),• any declaration signed by you in connection with the above,• any written information supplied by you supplementary to the Proposal Form, Statement of Fact or electronic application,• any quotation or confirmation of cover letter,• any document issued by us setting out any conditions that will apply to your policy,• any document stating that this policy of insurance has been issued subject to certain outstanding items and/or actions by you

or us,• the Policy, Schedule, Memoranda, Endorsements and Warranties.

Please note that information contained on your website is not regarded as information supplied by you and does not form part of thecontract of insurance, unless we have specifically agreed to include it.Please refer to the “Definitions” in the policy. These will tell you what words or expressions have specific meanings wherever theyappear in bold throughout the policy.Where a statute is referred to in this policy, this will also include any later amendments/replacements of it.We will indemnify or compensate you, by payment or, at our option, by replacement, reinstatement or repair in the event ofloss, destruction, damage, accident or liability occurring during any period of insurance, subject to the terms and conditions of thepolicy.

The policy consists of the Page(s)

Schedule (including Endorsements andWarranties applicable) Inside front cover or sent to you electronically

Customer service information 3

Sections1 Public and Products Liability 6

Professional Indemnity Extension 82 Employers’ Liability 123 Nursery Contents 144 Loss of Revenue 195 Legal Expenses 216 Personal Accident for Children at the Nursery 277 Personal Accident for Nursery Officials 288 Loss of Registration Certificate 299 Nursery Money 3010 Nursery Officials’ Personal Money 3211 Nursery Officials’ Personal Effects 3312 Nursery Children’s Personal Effects 3413 Contents in Transit 3514 Deterioration of Refrigerated/Frozen Food 3615 Glass 3716 Computer Breakdown 3817 All Risks 4018 Buildings 4119 Terrorism 4520 Yellowtag 46

General Conditions 47

General Exclusions 49

Definitions 51

Endorsements and Warranties 56

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The Sections applicable are as stated on the Schedule.

The policy has been prepared in accordance with your instructions - please read it carefully to make certain that it meets yourrequirements. Morton Michel will be pleased to provide any further information which you may require.

Alterations to the cover will be confirmed by the issue of a new schedule which you should file with your policy. Please refer to thesereplacement documents and the policy to obtain precise details of the cover currently in force.

Our promise of satisfaction and serviceWe are confident that your NurseryCare policy will bring you complete satisfaction.

We undertake to refund the premium in full if you are not satisfied with the cover provided by your policy if it is returned within 14 daysof issue, but if there has been an incident which has resulted or could result in a claim youmust reimburse us for any amounts we havepaid or may be required to pay in respect of that incident.

We wish to provide you with a high standard of service and to meet any claims covered by this policy fairly and promptly. Page 3 ofyour policy provides information on how to proceed with enquiries or complaints and gives details of Sterling’s important and valuableHelplines - there to provide you with quality advice.

DisclosureIt is most important that you tell us of any material change in your circumstances which may affect this insurance cover. Material factscan have an effect on what you are covered for and how much you pay. If you are not sure whether something is important, please tellus anyway, since a failure to disclose a material fact relevant to this insurance, could result in your cover being invalid.We recommendthat you keep a copy or a record of all information you give to us.

ConfidentialityWe promise complete confidentiality and security in all matters relating to your insurance arrangements.

J BlundellManaging DirectorSterling Insurance Company LimitedRegistered in England and Wales No. 00498605Registered Office: Ambassador House, Paradise Road, Richmond upon Thames, Surrey, TW9 1SQAuthorised & Regulated by the Financial Services Authority

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Customer Service Information

1. Sterling Insurance Company Limited

Sterling Insurance Company Limited is a private company limited by shares, registered in England and Wales number 498605. Itunderwrites general insurance business. It is authorised and regulated by the Financial Services Authority (FSA). The FSA is theindependent watchdog that regulates financial services.

FSA Register number is 202012. You can check this on the FSA’s Register by visiting the FSA’s website www.fsa.gov.uk/register or bycontacting the FSA on 0845 606 1234.

Sterling Insurance Company Limited is a member of Sterling Insurance Group Limited.

Registered Office:Ambassador HouseParadise RoadRichmond upon ThamesSurrey TW9 1SQ

Branch Office:50 Kings Hill AvenueKings HillWest MallingKent ME19 4JX

2. Disability Discrimination Act 1995

In accordance with the Disability Discrimination Act 1995 Sterling are able to provide upon request a textphone facility, audio tapes,large print documentation and Braille documentation. Please advise Sterling if you require any of these services to be provided so thatwe can communicate in an appropriate manner.

3. Law applicable to the contract

We propose to choose English law as the law applicable to the contract unlesswe agree another choice of law with you prior to the startdate.

4. Premiums

Premiums are payable annually to Morton Michel. Insurance premium tax, as imposed by current legislation, is incorporated into allpremiums.

5. Promise of satisfaction and service

We are confident that your NurseryCare policy will bring you complete satisfaction. Sterling undertake to refund the premium in full ifyou are not satisfied with the cover provided by your policy if it is returned within 14 days of issue, but if there has been an incidentwhich has resulted or could result in a claim you must reimburse Sterling for any amounts we have paid or may be required to pay, inrespect of that incident.

6. Duration of contract

The first period of insurance under your NurseryCare policy will be 12 months unless otherwise requested by you and agreed by us.

7. Financial Services Compensation Scheme

Sterling Insurance Company Limited are covered by the Financial Services Compensation Scheme (FSCS). You may be entitled tocompensation from the scheme if we cannot meet our obligations. This depends on the type of business and the circumstances of theclaim. Further information about compensation scheme arrangements is available from the FSCS, telephone number 0207 892 7300.

8. Notification of a claim

If you have a claim, or are aware of an incident that could result in a claim, please contact Morton Michel on 0845 257 0900 or SterlingInsurance Company Limited on 0845 271 1300.

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9. Enquiries or complaints

If you have an enquiry or complaint regarding:

• the suitability of this policy for your needs; or

• the information and advice you received whilst it was originally being discussed; or

• the operation or administration of the policy

or an enquiry concerning a claim that you may have made; you should contact Morton Michel at Alhambra House, 9 St Michaels Road,Croydon CR9 3DD; telephone number 0845 257 0900.

If you have a complaint concerning a claim you have made, you should contact Sterling Insurance Company Limited, 50 Kings HillAvenue, Kings Hill, West Malling, Kent ME19 4JX; telephone number 0845 271 1300.

(A copy of Sterling’s complaints handling procedure is available on request by writing to the Customer Services Manager, SterlingInsurance Company Limited, 50 Kings Hill Avenue, Kings Hill, West Malling, Kent ME19 4JX or by telephoning 0845 271 1300.)

If your complaint relates to the Legal Expenses cover, please write to The Customer Relations Department, DAS Legal ExpensesInsurance Company Limited, DAS House, Quay Side, Temple Back, Bristol BS1 6NH or telephone 0117 934 0066 or emailcustomerrelations@das.co.uk.

Details of the DAS internal complaint-handling procedures are available on request.

Please be ready to provide all relevant details of your policy and in particular your policy number (if allocated) to help your enquiry orcomplaint to be dealt with speedily.

If you are not satisfied with the way in which your complaint has been handled, you may have the right to refer it to the FinancialOmbudsman Service at South Quay Plaza, 183 Marsh Wall, London E14 9SR; telephone number 0845 080 1800.

Please note that the Financial Ombudsman Service will normally only consider a complaint once we have issued a final decision letter.

Nothing in the terms and conditions of this policy will reduce your statutory rights relating to faulty or mis-described goods or services.For further information about your statutory rights, you should contact your local authority Trading Standards Department or Citizen’sAdvice Bureau.

Following this procedure will not affect your legal rights.

10. Information about DAS Legal Expenses Insurance Company Limited

DAS Legal Expenses Insurance Company Limited is a private company limited by shares incorporated in England and Wales underregistered number 103274. It underwrites legal expenses business.Its head and registered office is DAS House, Quay Side, Temple Back, Bristol, BS1 6NH.It is authorised and regulated by the Financial Services Authority and appears on the Financial Services Authority’s register undernumber 202106. You can check this on the FSA’s Register by visiting the FSA’s website www.fsa.gov.uk/register or by contacting the FSAon 0845 606 1234.

11. Morton Michel

Morton Michel is authorised and regulated by the Financial Services Authority (FSA).FSA Register number is 308590. You can check this on the FSA’s Register by visiting the FSA’s website www.fsa.gov.uk/register or bycontacting the FSA on 0845 606 1234.

Morton MichelAlhambra House9 St. Michaels RoadCroydon CR9 3DD

Telephone: 0845 2570900Fax: 0845 2570547/0548www.mortonmichel.com

12. The Employment Manual

The DAS Employment Manual offers comprehensive, up to date guidance on rapidly changing employment law. To view it, please visitthe DAS website at www.das.co.uk. From the Home Page click on the Employment Manual icon. All the sections of this web-baseddocument can be printed off for your own use. Contact DAS at employmentmanual@das.co.uk with your e mail address, quoting yourpolicy number and DAS will contact you by e mail to inform you of future updates to the information.

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Helplines

Glass Helpline: 0800 474747A fast and efficient glass and frame replacement service arranged by Solaglas Replacement Glazing, Ashbourne House, FishpondsRoad, Bristol BS5 6SH. Operates 24 hours a day, 365 days a year, utilising their fleet of radio controlled mobile glaziers. If the glassbreakage or frame damage is insured by your policy, Sterling will be debited direct by Solaglas. You pay only the policy deductible andVAT where appropriate.

Helpline ServicesDAS Legal Expenses Insurance Company Limited provide these services 24 hours a day, seven days a week during the period ofinsurance. To help DAS check and improve service standards, all calls are recorded except those to the counselling helpline.

Commercial Legal AdviceConfidential legal advice is given over the phone on any commercial legal problem affecting your business.

Tax AdviceConfidential advice is given over the phone on any tax matters affecting your business, under the laws of the United Kingdom.

Emergency Repair SupportIn the event of an unforeseen emergency affecting your business premises (even if you work from home) which causes damage orpotential danger, such as a burst pipe, blocked drain or broken window, DAS will contact a suitable repairer or contractor and arrangeassistance on your behalf. All costs of assistance provided are your responsibility.

Health and Medical Information ServiceInformation is given over the phone on general health issues and non-diagnostic advice on medical matters. Advice can be given on allergies,side effects of drugs and how to improve overall health. Information is available on health services including hospital waiting lists.Between the hours of 7pm and 9am DAS will take a message and one of their health and medical advisors will contact you the next dayor at an agreed time.

To contact the above services, phone 0117 934 0568 quoting Morton Michel NurseryCare policy and your policy number.

CounsellingDAS will provide you and your employees (including any members of their immediate family who permanently live with them) with aconfidential counselling service over the phone including, where appropriate, onward referral to relevant voluntary and/or professionalservices.

To contact the counselling helpline, phone 0117 934 2121. These calls are not recorded.

DAS will not accept responsibility if the Helpline Services fail for reasons they cannot control.Please do not use the helpline numbers to report a general insurance claim.

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Section 1 – Public and Products Liability

CoverWe will indemnify you against all amounts which you shall become legally liable to pay as damages in respect ofa) accidental bodily injury to any personb) accidental loss or destruction of or accidental damage to material propertyc) accidental obstruction, accidental trespass or accidental nuisance resulting in interference with or loss of enjoyment of material

property happening in connection with the business and occurring during the period of insurance within the territorial limits.

Additional coverThe cover under this section is extended to include the following

1 Consumer Protection Act 1987Wewill indemnify you, and at your request, any of your directors, partners or employees against legal costs and expenses incurredin the defence of any criminal proceedings brought for a breach of the Consumer Protection Act 1987 committed or alleged to havebeen committed during the period of insurance, including legal costs and expenses incurred with our consent in any appealagainst conviction arising from such proceedings. Our liability shall not exceed £1 0,000 in any one period of insurance.

2 Contingent motor liability (non-owned vehicles)Notwithstanding Special exclusion 2iii) we will indemnify you in respect of legal liability for accidental bodily injury to any personor accidental loss or destruction of or accidental damage to material property arising out of the use of anymotor vehicle not yourproperty of nor provided by you but being used in connection with the business.

Provided that we shall not be liable under this extensiona) in respect of loss or destruction of or damage to such motor vehicle or to goods conveyed therein or thereonb) for bodily injury to any person or loss or destruction of or damage to property arising whilst suchmotor vehicle is being driven

by under the control of any person who does not hold a licence to drive such vehiclec) in respect of any liability in connection with any motor vehicle which to your knowledge does not have the necessary

insurance or security to meet the requirements of road traffic legislationd) in respect of any liability more specifically insured.

3 Corporate Manslaughter

We will indemnify you againsta) legal costs and expenses incurred with our prior written consent andb) prosecution costs awarded against you in the defence of any criminal proceedings including an appeal against conviction

arising from such proceedings brought under The Corporate Manslaughter and Corporate Homicide Act 2007 as a result of anydeath happening in connection with the business during the period of insurance and which may be the subject of indemnityunder this section.

Provided thati) our liability under this extension shall not exceed the limit of indemnity stated in the schedule during any one period of

insuranceii) all amounts payable under this extension will form part of and not be in addition to the limit of indemnity stated in the

scheduleiii) where we have already provided an indemnity in respect of any legal costs or expenses incurred in connection with the

defence of any criminal proceedings including appeals against conviction arising from such proceedings brought under TheCorporate Manslaughter and Corporate Homicide Act 2007 arising out of the same occurrence which gave rise to suchproceedings any amount paid or payable by us will be deducted from the amount payable under this extension

iv) we agree in writing to the appointment of any solicitor or counsel who is to act on your behalf prior to their appointment.

We will not be liable fori) any fines or penalties or the cost of implementing any remedial order or publicity orderii) an appeal against any fines, penalties, remedial order or publicity orderiii) any costs incurred which result from the failure to comply with any remedial order or publicity orderiv) costs and expenses in connection with an appeal unless advice has been obtained from solicitors or council that there are

strong prospects of successv) costs and expenses in connection with the defence of any criminal proceedings resulting from any deliberate or

intentional criminal act or omission by you or any of your directors partners or employeesvi) costs and expenses provided by any other source or any other insurance or where but for the existence of this extension

would have been provided by such source or insurancevii) costs and expenses in connection with the defence of any criminal proceedings unless such proceedings are brought against

you in a Court of Law in Great Britain, Northern Ireland, the Isle of Man or the Channel Islands.

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4 Court attendanceIn the event of any your directors, partners or employees attending court as a witness at our request in connection with any claimfor which an indemnity is provided by this section, we will pay compensation to you at the rate of £250 per day for each day onwhich such attendance is required.

5 Cross liabilitiesWhere there is more than one person named as the insured in the schedule this section shall apply separately to each namedperson as if each is insured by a separate policy, provided always that ourmaximum liability in the aggregate to all parties insuredshall not exceed the limit of liability in any one period of insurance.

6 Defective Premises Act 1972We will indemnify you against all amounts which you shall become legally liable to pay as damages in respect of accidental bodilyinjury to any person or accidental loss or destruction of or accidental damage to material property occurring during a period ofseven years immediately following disposal by you of buildings that have been insured by this policy.

Provided that such liability is incurred in connection with such buildings and by virtue of Section 3 of the Defective Premises Act1972.

We will not be liablea) if at the date of their disposal by you such buildings were not insured by this policy or any other policies in respect of which

this policy has been issued in substitutionb) for the cost of repairing or rectifying any defect or alleged defect in such buildingsc) if you are entitled to indemnity under any other policy.

7 Food Safety Act 1990We will indemnify you and, at your request, any of your directors, partners or employees against legal costs and expensesincurred in the defence of any criminal proceedings brought for a breach of the Food Safety Act 1990 committed or alleged to havebeen committed during the period of insurance, including legal costs and expenses incurred with our consent in any appealagainst conviction arising from such proceedings.Our liability shall not exceed £10,000 in any one period of insurance.

8 Health and Safety at Work etc. Act 1974We will indemnify you and, at your request, any of your directors, partners or employees against legal costs and expensesincurred, with our written consent, in the defence of any criminal proceedings brought in respect of a breach of the Health andSafety at Work etc. Act 1974 committed or alleged to have been committed during the period of insurance, including legal costsand expenses incurred with our written consent in an appeal against conviction arising from such proceedings.

We will not be liable fora) fines and penalties of any kindb) legal costs and expenses where an indemnity is provided by any other insurancec) proceedings arising out of any deliberate act or omission by youd) more than £10,000 in any one period of insurance.

9 Indemnity to membersWe will indemnify, at your request, any member of the insured organisation, or any legal representative of such member in theevent of their death, against legal liability in respect of which you would have been entitled to indemnity under this policy if theclaim had been made against you

Provided thata) any person indemnified is not entitled to indemnity under any other insuranceb) any person indemnified shall observe, fulfil and be subject to the terms and conditions of the policy so far as they can applyc) we will retain the sole conduct of any claimd) our maximum liability in the aggregate for damages to you and any such members shall not exceed the limit of liability.

10 Indemnity to other personsWe will indemnify at your requesta) any of your directors, partners or employeesb) any officer, committee member or other person employed by your catering, social, sports, educational or welfare

organisations or first-aid, medical, ambulance, fire or security servicesc) any director, partner or official for whom, with your consent, an employee is undertaking private workd) any principal or public or local authority as far as is necessary to meet the requirements of any contract or agreement entered

into by you for the performance of worke) the owner of plant hired by you but only to the extent of the conditions of hiref) any legal representative of any of the above in the event of their death

against legal liability in respect of which you would have been entitled to indemnity under this policy if the claim had been madeagainst you

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Provided thati) any person indemnified is not entitled to indemnity under any other insuranceii) any person indemnified shall observe, fulfil and be subject to the terms and conditions of this policy as far as they can applyiii) we will retain the sole conduct and control of any claimiv) our maximum liability in the aggregate for damages to you and any such persons shall not exceed the limit of liability.

11 Leased, hired and rented premisesIn the event of the premises being leased, hired or rented to you or in your custody or under your control, Special exclusion 3relating to such property shall be deemed not to apply provided that we shall not be liable in respect of liability assumed by youunder a contract or under a tenancy agreement if such liability would not have attached in the absence of such contract oragreement.

12 Legal costs and solicitors’ feesWe will pay in addition to the indemnity provideda) all legal costs recoverable from you by any claimantb) any other costs and expenses of litigation incurred with our written consentc) solicitors’ and counsels’ fees for legal representation at any coroner’s inquest or fatal accident enquiry

Professional Indemnity Extension

Notwithstanding Special exclusion 5e), the indemnity by this section is extended to indemnify you against all sums which you shallbecome legally liable to pay as damages and claimant’s costs and expenses as a result of any claim or claims first made against youand notified to us during the period of insurance arising out of

A) any breach of professional duty as a direct result of any unintentional negligent act, error or omission on the part ofa) youb) any of your employees, trustees, officers or directors, orc) any other person, persons, partnership, firm or company acting for you or on your behalf

in or about the conduct of the business

B) libel or slander committed unintentionally by reason of words written or spoken bya) you, orb) any of your employees, trustees, officers or directors

in or about the conduct of the business

Subject otherwise to all terms, exclusions and conditions of the section and the policy, and the following Extension Special exclusionsand Special conditions:

Extension Special exclusions (See also section Special exclusions on pages 9 and 10 and General Exclusions on pages 49 and 50)We will not be liable under this Extension in respect of(i) claims made upon you prior to inception of this Extension(ii) claims caused by or contributed to by any dishonest, fraudulent, criminal or malicious act or omission by you(iii) any loss arising out of any claim against you resulting from any circumstances or occurrence which is known to you at inception of

this Extension and likely to give rise to a claim against you(iv) liability arising out of or relating directly or indirectly to

(a) your insolvency(b) your bankruptcy(c) a take-over of your business(d) a merger involving your business

(v) liability arising out of, caused by or relating to products(vi) alleged infringement of Copyright, Patents, Registered Designs, Trade Marks or Passing-off(vii) libel or slander arising out of publication made in any journal, magazine or newspaper or by means of radio and/or television.

Extension Special conditions (See also section Special conditions on pages 10 and 11 and General Conditions on pages 47 and 48)(i) Claims notification

It is a condition precedent to liability that you shall give to us immediate notice in writing during the period of insurance of:(a) any claim made against you; or(b) the receipt of notice from any person or entity of their intention to make a claim against you for the results of any negligent

act, error or omission; or(c) any circumstances of which you shall become aware which might reasonably be expected to give rise to a claim being made

against you, giving reasons for the anticipation of such claim, with full particulars as to dates and persons involved.

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Such notice having been given as required by (b) or (c) above, any subsequent claim made shall be deemed to have been madeduring the period of insurance.

(ii) Disclosure of policy detailsIn the event of a claim or circumstances that may lead to a claim, youmust not disclose details of the policy to any person withoutour written consent.

Limits of liabilityOur liability in respect of damages

a) for all damages, claimant’s costs and expenses, and costs and expenses of litigation incurred with our written consent inrespect of all claims arising under the Professional Indemnity Extension first made against you and notified to us during theperiod of insurance shall not exceed the Professional Indemnity Limit of liability stated in the schedule

b) for all occurrences giving rise to a claim or a number of claims arising from products supplied shall not exceed the amountstated in the schedule in any one period of insurance

c) for any other occurrence giving rise to a claim or number of claims which arise from one cause shall not exceed the amountstated in the schedule.

Special exclusions (See also the General Exclusions on pages 49 and 50)We will not be liable under this section in respect of1 bodily injury to any employee arising out of and in the course of his employment by you in the business (see Section 2)2 a) loss or destruction of or damage to property

b) bodily injury sustained by any personarising from the ownership, possession or use by you or on your behalf ofi) any aircraft, aerial device, hovercraft, watercraft, caravan or animalii) any lift, elevator, hoist, crane, steam boiler or other apparatus operating under steam pressure, for which a statutory

inspection certificate is required but which is not in forceiii) anymotor vehicle

3 loss or destruction of or damage toa) property owned by or leased, hired or rented to youb) property belonging to or held in trust by or in the custody of or under the control of any Nursery official or any child attending

the Nursery (see Sections 3, 9, 10, 11 and 12)4 liability which attaches solely under the terms of any contract or agreement if such liability would not have attached in the absence

of such contract or agreement5 liability arising from or caused by

a) the use of any adventure playground equipmentb) i) the making up, sale or supply of medicines, drugs, syringes, dressings or medical supplies or equipment of any kind

whatsoeverii) the making up, sale or supply of cosmetics, toiletries, animal feeds, seeds, fertilisers or pesticides unless of a

proprietary manufactureiii) any products manufactured, constructed or prepared in accordance with their plan, design, formula or specification

failing to perform the function for which they are intended by youc) the provision or administering of any treatment other than

i) first aid treatmentii) the administration of drugs and medicines strictly in accordance with Special condition 2iii) the administration or provision of oxygen, gastro feeding, naso-gastric tube feeding, cleaning and changing of feeding

or tracheotomy/tracheostomy tubes and emptying/changing stoma bags strictly in accordance with Special condition 3d) the provision of any plan, design, formula or specificatione) the provision of advice or breach of professional duty other than as described in the Professional Indemnity Extension of this

sectionf) the use of solaria, sunbeds, saunas and hydro-massage facilitiesg) fund raising activities other than

i) events of a non-sporting activity nature involving only Nursery officials, children who attend the Nursery and membersof their family

ii) any other event notified to and accepted in writing by Morton Michelh) the use or ownership of velcro wall, “bar fly” or similar equipmenti) any diagnosis, therapy, or medical advice given or performedj) inflatable play equipment, other than bouncy castles used by the Nursery for the children attending the Nursery (or other

children in their family)k) cycling on public roads

6 loss or destruction of or damage to products nor the cost of making good or recalling such products7 loss or destruction of or damage to that part of any property upon which you are or have been working8 fines, penalties or liquidated, punitive, exemplary or multiple damages9 liability arising from and/or caused by any processes or work in connection with offshore installations for the purposes of this

special exclusion only

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a) offshore installation means any platform or rig or any aircraft or vessel servicing a platform or rigb) it is understood that any person is deemed to be ‘offshore‘ as from the time when they embark onto a conveyance at the point

of final departure to an offshore installation and that any person shall continue to be deemed to be ‘offshore’ until such timeas they disembark from a conveyance onto land upon their return from an offshore installation.

10 liability arising, directly or indirectly, out of exposure to inhalation of, or fears of the consequences of exposure to, or inhalationof, asbestos

11 the cost of cleaning up, or removal of, or damage to property arising out of any asbestos12 liability at law for loss, damage, cost or expense of whatsoever nature directly or indirectly arising out of, contributed by, caused

by, resulting from, or in connection with any of the following, or any action taken in controlling, preventing, suppressing,retaliating against or responding to any of the following, regardless of any other cause or event contributing concurrently or in anyother sequence of the loss:a) war, invasion, acts of foreign enemies, hostilities or warlike operations (whether war be declared or not), civil war, mutiny,

revolution, rebellion, insurrection, uprising, military or usurped power, confiscation by order of any public authority orgovernment de jure or de facto or martial law; or

b) riots, strikes, or civil commotion; orc) any act of terrorismIf we allege that by reason of this exclusion any actual or alleged losses, liabilities, damages, injuries, defence costs, costs orexpenses are not covered by this section the burden of proving the contrary shall be upon you

13 liability arising from or caused by or contributed to by activities not advised to and agreed in writing by Morton Michel14 damages for bodily injury or loss or destruction of or damage to property unless the action is brought against you in a Court of

Law within the territorial limits.

Special conditions (See also the General Conditions on pages 47 and 48)1 It is a condition precedent to our liability that whenever bouncy castles are used:

a) the manufacturers’ and/or suppliers’ instructions regarding use, safety and maximum recommended numbers of childrenmust be complied with at all times;

b) no adult must be allowed to play on the bouncy castle;c) the location and the moorings for the bouncy castle must be safe and suitable;d) the bouncy castle equipment must be checked by a Nursery Official before use to ensure that there is no defect or damage;e) at least two members of staff must supervise the bouncy castle at all times;f) safety mats must be in the correct place and kept clear at all times;g) supervising staff must be able to see all children on the bouncy castle and be close enough to support any child that may

come off or be in need of help;h) the bouncy castle must be deflated when not in use;i) one member of staff must check the bouncy castle every half hour to ensure that the moorings are stable, the blower is

pumping in air correctly and the air vents are secure;j) a trained First Aider must be present on site;k) food and drink must not be permitted on the bouncy castle;l) children must not be permitted to

(i) wear jewellery, watches or shoes/boots/trainers etc, or have any sharp or pointed objects whilst on the bouncy castle(ii) perform any type of acrobatics or climb the walls or supporting pillars of the bouncy castle(iii) go either around the back or the sides of the bouncy castle at any time(iv) have access to the bouncy castle whilst it is being deflated;

m) chldren must(i) walk on and off the bouncy castle on all occasions(ii) be grouped in relation to their size and age.

2 It is a condition precedent to liability that the administration of drugs or medicines takes place only under the followingconditions:-a) In all cases:

(i) The parent/guardian of each child attending the Nursery must provide details of any known allergy to medicationsuffered by their child. Such details to be recorded by you or your employees in the drugs/medicine register andconsulted before any emergency administration of drugs or medicines.

(ii) The drug or medicine must have been prescribed by the child’s General Practitioner or consultant or given to the Nurseryby the child’s parent/guardian or the child’s General Practitioner or consultant.

(iii) The drug or medicine must be kept in a secure place with access only by authorised persons.(iv) A clear label, with the child’s name, must be attached to the drugs or medicine.(v) A drugs/medicine register must be kept showing:

(a) the child’s name(b) type of drug/medicine administered(c) date and time administered(d) dosage(e) name and signature of person administering the drug/medicine(f) name and signature of witness

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(g) time of notification to child’s parent/guardian when an administration of drug or medicine has been given in anemergency

(h) note of any known allergy to medication suffered by children attending the Nursery.(vi) You must familiarise yourself and comply with all relevant requirements of your statutory registering authority

concerning the administration of drugs and medicines.(vii) You must have a letter of authorisation from the child’s parent/guardian containing clear instructions for the

administration of non-prescribed drugs or medicines, prescribed oral medication or asthma inhalers.

b) In cases where occasional, regular or emergency medication is required such as epipens, hypodermic injections or tube-administered medication (but not including non-prescribed drugs or medicines, prescribed oral medication or asthmainhalers, which are dealt with under 2 a) above), you must comply with (i) to (vi) above AND IN ADDITION(viii) Youmust have a letter from the child’s parent/guardian providing specific consent for you to administer the medication.(ix) You must have a letter from the child’s General Practitioner or consultant stating:

(a) what condition the drug or medicine is for with its name(b) how and when the drug or medicine is to be given(c) what training of personnel is required, if any(d) any other relevant information

(x) Training in the administration of the drug or medicine must be as stipulated by the child’s general practitioner orconsultant and, if required, you must provide proof of such training.

3 It is a condition precedent to liability that the administration or provision of oxygen, gastro feeding, naso-gastric tube feeding,cleaning and changing of feeding or tracheostomy/tracheotomy tubes and emptying/changing stoma bags takes place only underthe following conditions:a) You must have a letter from the child’s General Practitioner or consultant stating:

(i) the child’s condition and the health support procedures required(ii) what training of personnel is required(iii) what medical experience is required(iv) any other relevant information.

b) You must have a letter from the child’s parent/guardian providing specific consent for your staff to administer/provide thehealth support procedures required.

c) You must ensure that any person administering/providing the required health support procedures has the medicalexperience and training specified by the child’s General Practitioner or consultant and, if required, provide proof of suchtraining.

d) Youmust familiarise yourself and comply with all relevant requirements of their statutory registering authority concerning theadministration/provision of the health support procedures.

4 We may at any time pay to you the amount of the Limit of liability less any amount already paid, or any lesser amount for whichany claim or claims can be settled and shall then cease to have the conduct and control of the negotiations, actions or proceedingsand be under no further liability in respect of such claim or claims except for costs and expenses incurred prior to the date of suchpayment.

5 It is a condition precedent to our liability that, when selecting and appointing staff, you shall:a) carry out all investigations recommended by Ofsted or any other competent authority on all current and prospective

employees and regular voluntary helpers;b) obtain all relevant Criminal Records Bureau Disclosures on all current and prospective employees and regular voluntary

helpers;c) act reasonably in response to the information obtained.

6 All visiting instructors or demonstrators must have their own Public Liability insurance covering their activities, effective and witha limit of indemnity of at least £1,000,000.

7 Any horse riding activity must be at authorised riding centres only, with their own Public Liability insurance, effective and with alimit of indemnity of at least £1,000,000.

8 A qualified Life Saver or a qualified swimming teacher/coach must be in attendance at all times whenever swimming activities areundertaken.

9 It is a condition precedent to our liability that whenever trampolines are used:a) the manufacturers’/suppliers’ instructions regarding use, safety and recommended numbers of children must be complied

with at all times;b) the use of such equipment has been notified to Ofsted or other registering authority and no concerns or objections have been

raised, and any requirements complied with.

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Section 2 – Employers’ LiabilityCoverWewill indemnify you against all amounts which you shall become legally liable to pay as damages in respect of accidental bodily injuryto any employee if such injury arises out of and in the course of his employment by you in the business and occurring during the periodof insurance within the territorial limits.

Additional coverThe cover under this section is extended to include the following

1 Corporate ManslaughterWe will indemnify you againsta) legal costs and expenses incurred with our prior written consent andb) prosecution costs awarded against you in the defence of any criminal proceedings including an appeal against conviction

arising from such proceedings brought under The Corporate Manslaughter and Corporate Homicide Act 2007 as a result of anydeath happening in connection with the business during the period of insurance and which may be the subject of indemnityunder this section.

Provided thati) our liability under this extension shall not exceed the limit of indemnity stated in the section and/or schedule during any one

period of insuranceii) all amounts payable under this extension will form part of and not be in addition to the limit of indemnity stated in the

scheduleiii) where we have already provided an indemnity in respect of any legal costs or expenses incurred in connection with the

defence of any criminal proceedings, including appeals against conviction arising from such proceedings brought under TheCorporate Manslaughter and Corporate Homicide Act 2007 arising out of the same occurrence which gave rise to suchproceedings, any amount paid or payable by us will be deducted from the amount payable under this extension

iv) we agree in writing to the appointment of any solicitor or council who is to act on your behalf prior to their appointment.We will not be liable fori) any fines or penalties or the cost of implementing any remedial order or publicity orderii) an appeal against any fines penalties remedial order or publicity orderiii) any costs incurred which result from the failure to comply with any remedial order or publicity orderiv) costs and expenses in connection with an appeal unless advice has been obtained from solicitors or counsel that there are

strong prospects of successv) costs and expenses in connection with the defence of any criminal proceedings resulting from any deliberate or intentional

criminal act or omission by you or any of your directors, partners or employeesvi) costs and expenses provided by any other source or any other insurance or where but for the existence of this extension

would have been provided by such source or insurancevii) costs and expenses in connection with the defence of any criminal proceedings unless such proceedings are brought against

you in a Court of Law in Great Britain, Northern Ireland, the Isle of Man or the Channel Islands.

2 Court attendanceIn the event of any your directors, partners or employees attending court as a witness at our request in connection with any claimfor which an indemnity is provided by this section, we will pay compensation to you at the rate of £250 per day for each day onwhich such attendance is required.

3 Health and Safety at Work etc. Act 1974We will indemnify you and, at your request, any of your directors, partners or employees against legal costs and expensesincurred, with our written consent, in the defence of any criminal proceedings brought in respect of a breach of the Health andSafety at Work etc. Act 1974 committed or alleged to have been committed during the period of insurance, including legal costsand expenses incurred with our written consent in an appeal against conviction arising from such proceedings.

We will not be liable fora) fines and penalties of any kindb) legal costs and expenses where an indemnity is provided by any other insurancec) proceedings arising out of any deliberate act or omission by youd) more than £10,000 in any one period of insurance.

4 Indemnity to other personsWe will indemnify at your requesta) any of your directors, partners or employeesb) any officer, committee member or other person employed by your catering, social, sports, educational or welfare

organisations or first-aid, medical ambulance, fire or security servicesc) any director, partner or official for whom with your consent an employee is undertaking private workd) any principal or public or local authority as far as is necessary to meet the requirements of any contract or agreement entered

into by you for the performance of worke) the owner of plant hired by you but only to the extent of the conditions of hire

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f) any legal representative of any of the above in the event of their deathagainst legal liability in respect of which you would have been entitled to indemnity under this policy if the claim had been madeagainst you

Provided thati) any person indemnified is not entitled to indemnity under any other insuranceii) any person indemnified shall observe, fulfil and be subject to the terms and conditions of this policy as far as they can applyiii) we will retain the sole conduct and control of any claimiv) our maximum liability in the aggregate for damages to you and any such persons shall not exceed the limit of liability.

5 Legal costs and solicitors’ feesWe will pay in addition to the indemnity provideda) all legal costs recoverable from you by any claimantb) any other costs and expenses of litigation incurred with our written consentc) solicitors’ and counsels’ fees for legal representation at any coroner ’s inquest or fatal accident enquiry.

6 Unsatisfied court judgementsIn the event of a judgement for damages being obtained by any employee or his personal representatives in respect of bodilyinjury to such employee caused during the period of insurance and arising out of and in the cause of employment by you in thebusiness against any company or person operating from premises within the territorial limits in any court situate within such limitsand remaining unsatisfied in whole or in part six months after the date of such judgement, we will, at your request, pay to suchemployee or his personal representatives the amount of the unsatisfied damages and awarded costs

Provided thata) there is no appeal against the judgement outstandingb) if any payment is made under this Additional Cover the judgement concerned shall be assigned to us.

Limits of liabilityOur liability in respect of

a) accidental bodily injury to employeesb) all legal costs recoverable from you by any claimantc) any other costs and expenses of litigation incurred with our written consentd) solicitors’ and counsels’ fees for legal representation at any coroner ’s inquest or fatal accident inquirye) the costs incurred, with our written consent, for defending in a Court Summary Jurisdiction, any proceedings arising out of

any alleged breach of statutory duty in respect of any cause which may be the subject of indemnity under this section of thepolicy

which arises out of and in the course of employment in the business shall not exceedi) £5,000,000 as regards bodily injury which is directly or indirectly caused by, contributed to by, results from or arises out of

or in connection with any act of terrorism or any action taken in controlling, preventing, suppressing, retaliating against,responding to or in any way relating to any act of terrorism

ii) £10,000,000 as regards any other bodily injuryin respect of any one claim against you or series of claims against you arising out of one cause.

Special exclusions (See also the General Exclusions on pages 49 and 50)We will not be liable under this section in respect of1 liability arising from and or caused by any processes or work in connection with offshore installations;

for the purposes of this special exclusion onlya) offshore installation means any platform or rig or any aircraft or vessel servicing a platform or rigb) it is understood that any person is deemed to be “offshore” as from the time when they embark onto a conveyance at the

point of final departure to an offshore installation and that any person shall continue to be deemed to be “offshore” until suchtime as they disembark from a conveyance onto land upon their return from an offshore installation

2 damages for bodily injury unless the action is brought against you in a Court of Law within the territorial limits.

Special conditions (See also the General Conditions on pages 47 and 48)1 The indemnity granted includes protection to you as required by any law relating to compulsory insurance of the employer’s legal

liability to his employees whilst employed in Great Britain, Northern Ireland, the Isle of Man or the Channel Islands but you shallrepay to us all sums paid by us which we would not have been liable to pay but for the provisions of such law.

2 If the policy or this section is cancelled then any Certificate of Employers’ Liability Insurance issued by us is deemed to be cancelledat the same time.

3 We may at any time pay to you the amount of the Limit of liability less any amount already paid, or any lesser amount for whichany claim or claims can be settled, and shall then cease to have the conduct and control of the negotiations, actions or proceedingsand be under no further liability in respect of such claim or claims except for costs and expenses incurred prior to the date of suchpayment.

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Section 3 – Nursery Contents

CoverWe will indemnify you in respect of loss, destruction or damage to Nursery contents in the premises caused by the following perils

1 fire (whether resulting from explosion or otherwise) not occasioned by or happening througha) its own spontaneous fermentation or heatingb) earthquake or subterranean fire

2 lightning3 explosion but excluding loss, destruction or damage (other than loss, destruction or damage by fire resulting from explosion)

a) caused by or consisting of the bursting of a boiler (not being a boiler used for domestic purposes only) economiser or othervessel, machine or apparatus in which internal pressure is due to steam only and belonging to or under the control of theinsured

b) in respect of and originating in any vessel, machinery or apparatus or its contents, belonging to or under the control of theinsured which requires to be examined to comply with any statutory regulations unless such vessel, machinery or apparatusshall be the subject of a policy or other contract providing the required inspection service

4 aircraft and other aerospatial devices or articles dropped therefrom5 theft or any attempt thereat involving

a) forcible and violent entry to or exit from the premisesb) assault or violence or threat thereof to you or any of your employees but excluding loss, destruction or damage to loose or

moveable property in the open6 riot, civil commotion, strikers, locked-out workers or persons taking part in labour disturbances or malicious persons acting on

behalf of or in connection with any political organisation but excluding loss, destruction or damage caused in Northern Ireland orresulting from cessation of work

7 malicious persons not acting on behalf of or in connection with any political organisation but excluding loss, destruction ordamage by theft or any attempt thereat

8 earthquake or subterranean fire9 impact by any mechanically propelled vehicle (whether the vehicle be licensed for normal road use or not) or by goods falling

therefrom or by animals but excluding loss or destruction of or damage to property in transit (see Section 11)10 storm but excluding loss, destruction or damage

a) caused byi) the escape of water from the normal confines of any natural or artificial watercourse, lake, reservoir, canal or damii) inundation from the sea, whether resulting from storm or otherwiseiii) frost, subsidence, ground heave or landslip

b) attributable solely to change in the water table levelc) to property in the open

11 flood but excluding loss, destruction or damagea) caused by frost, subsidence, ground heave or landslipb) attributable solely to change in the water table levelc) to property in the open

12 sudden escape of water from any fixed water installation, tank, apparatus or pipes but excluding loss, destruction or damage bywater discharged or leaking from any automatic sprinkler installation

13 water accidentally discharged or leaking from any automatic sprinkler installation in the premises or the buildings not occasionedby or happening througha) freezing whilst the premises or the buildings in the insured’s ownership or tenancy are empty or disusedb) explosion, the blowing up of buildings, blasting, earthquake or subterranean fire or heat caused by fire but excluding loss or

destruction of or damage to such installation other than that caused by water accidentally discharged or leaking from anysuch installation

subject to the following special conditionsi) the insured shall take all reasonable steps to prevent frost and other damage to any such automatic sprinkler installation and

to prevent the freezing of water in any part of such installation and so far as his responsibility extends to maintain all suchinstallations including the automatic external alarm signals in efficient working condition and in the event of any dischargeor leakage from any such installation the insured shall do and permit to be done all things practicable whether by removal orotherwise to save and protect the property insured

ii) when any changes, repairs or alterations to any such automatic sprinkler installation are proposed written notice thereof isto be given to the Company and its agreement obtained in writing

iii) the Company shall have access to the premises and the buildings at all reasonable times for the purposes of inspection andif the Company notifies the insured of defects in the construction or condition of any automatic sprinkler installation requiringalteration or repair the Company may also at its option by notice in writing suspend this insurance until such alterations orrepairs be made and approved by the Company

14 sudden escape of oil from any fixed installation15 falling trees or branches but excluding loss, destruction or damage

a) caused by felling or lopping carried out by you or on your behalfb) to loose or moveable property in the open

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16 accidental damage occurring at the premises but excludinga) wear, tear or depreciation or diminution in valueb) loss, destruction or damage caused by or arising from

i) frost, subsidence, ground heave or landslip or from settlement or bedding down of new structuresii) collapse or cracking of buildingsiii) inherent vice, latent defect, faulty workmanship, defective design, plan or specification or the use of faulty materialsiv) marring, scratching or denting or mechanical or electrical defect, failure, breakdown or derangementv) atmospheric or climatic conditions or any other gradually operating cause, rot, fungus, rust, corrosion, woodworm,

moths, insects, vermin or pestsvi) any process involving cleaning, dyeing, staining, repairing, restoring, renovating, fitting, alteration or maintenance of

any propertyvii) use of any article contrary to manufacturers’ instructions

c) loss, destruction or damage caused by or resulting fromi) any exclusions to perils 1 to 15 aboveii) any peril excluded or deleted from 1 to 1 5 above

d) loss, destruction or damage to loose or moveable property in the open.

Additional coverThe cover under this section is extended to include the following

1 Consulting engineers’ and legal feesWithin the overall limit of the sum insured on Nursery contents, we will pay the cost of consulting engineers’, legal and other feesnecessarily and reasonably incurred in the reinstatement or repair of the property following loss, destruction or damage causedby any peril hereby insured against but excluding fees charged for the preparation of any claim.

2 Debris removalThe costs and expenses necessarily and reasonably incurred in the removal of debris following loss, destruction or damage toNursery contents caused by any peril hereby insured against, subject to the adequacy of the sum insured.

Provided that we will not be liable for any such costs or expensesa) incurred in removing debris except from the site of such insured property so lost, destroyed or damaged and from the area

immediately adjacent to such siteb) arising from pollution or contamination of property not insured by this section.

3 External CCTV equipment and security lightingThis section extends to include loss, destruction or damage to external CCTV equipment and security lighting at the premises, forwhich you are legally responsible, provided that such property is located and fixed in an inaccessible position.

Our liability will not exceed £1000 in any one period of insurance.

4 Extinguishment expensesThe cost of refilling fire extinguishing equipment used solely as a consequence of loss, destruction or damage caused by any perilhereby insured against.

5 Fire brigade damageCosts and expenses incurred by the insured with our consent in repairing or reinstating damage to the landscaped gardens andgrounds, at the risk address or any location stated in the schedule, caused by fire brigade equipment and personnel in the courseof combating fire or any other peril hereby insured against.

Provided that you are responsible for the repair or reinstatement of such damage. Our liability will not exceed £1,000 in any oneperiod of insurance.

6 Fixed outside equipmentDamage to fixtures (including fixed play equipment) in the garden(s) of the premises by any peril hereby insured against other thanby perils 10 or 11.

Theft cover subject to there being forcible and violent entry to or exit from the perimeter fencing or gates.

Our liability will not exceed £5,000 in any one period of insurance.

7 Groundsmen’s machines etc in garden(s)Damage to groundsmen‘s machines and equipment in the garden(s) of the premises caused by any peril hereby insured againstother than by perils 5, 7, 10 or 11.

Our liability will not exceed £1,000 in any one period of insurance.

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8 Loss of metered waterThis section extends to include the cost of loss of metered water for which you are legally responsible arising from loss, destructionor damage at the premises caused by any peril hereby insured against.

Our liability will not exceed £5,000 in any one period of insurance.

9 Public authorities costsWithin the overall limit of the sum insured on Nursery contents and following loss, destruction or damage caused by any perilhereby insured against, we will pay the additional cost of reinstatement necessarily and reasonably incurred to comply withmunicipal or local bye-laws in respect of any lost, destroyed or damaged part of the property provided that notice under such bye-law had not been served on you before such loss, destruction or damage had occurred.

10 Sanitary ware and underground service pipes or cablesThis section extends to include the cost of reinstatement or repair for which you are legally liable following accidental damage toa) fixed sanitary ware and fittingsb) underground service pipes or cables extending from the public mains to the premises or the buildings.

Our liability will not exceed £1,000 in any one period of insurance.

11 ShedsThe insurance by this section is extended to include:a) the structure of any timber or metal sheds at the premises that are used for storage up to

i) £1,500 in the aggregate for timber sheds } or such other amounts asii) £2,500 in the aggregate for metal sheds } stated in the scheduleiii) maximum £2,500 in the aggregate overall }

b) the contents of any timber or metal sheds at the premises up toi) £1,500 in the aggregate in timber sheds } or such other amounts asii) £2,500 in the aggregate in metal sheds } stated in the scheduleiii) maximum £2,500 in the aggregate overall }

subject to the adequacy of the sum insured

12 SignsDamage to signs (other than glass) affixed to the buildings of the premises by any peril hereby insured against other than by peril10.

Our liability will not exceed £1,000 in any one period of insurance.

13 Temporary removalNursery contents as defined (other than stock) are covered for the perils insured while temporarily removed for cleaningrenovation repair or other similar purposes elsewhere on the same premises or to any other premises and in transit thereto andtherefrom in Great Britain, Northern Ireland, the Isle of Man or the Channel Islands but the amount recoverable hereunder shallnot exceed 10% of the sum insured after deducting the value of any stock insured.

14 Theft damage to the premisesDamage to the premises resulting from theft or any attempt thereat involving forcible and violent entry thereto or exit therefrom.

Provided that you are responsible for the repair of such damage.

15 Theft of external metalDamage to the Nursery contents directly caused as a result of entry of rainwater following theft of external lead, copper or othermetal.

16 Theft of keysThe cost of replacing locks or keys to the premises or any safe or strongroom therein resulting from loss of keys following theirthefta) involving forcible and violent entry to the premises or your home or the home of any authorised employeeb) by hold up involving assault or violence or threat thereof whilst such keys are in your personal custody or the custody of any

authorised employee.

Provided that we will not be liable for the cost of replacing locks or keys of any safe or strongroom following theft of the keys ifthey are left on the premises outside business hours.

Our liability will not exceed £2,500 in any one period of insurance.

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17 Trace and accessIn the event of loss, destruction or damage at the premises caused by peril 12 or peril 14 where insured, this section extends toinclude costs necessarily and reasonably incurred with our consent ina) locating the source of such loss, destruction or damage in order to effect repairsb) making good.

Our liability will not exceed £2,500 in any one period of insurance.

Limit of liabilityOur liability in respect of any one occurrence will not exceed the sum insured by this section.

Sum insuredAs shown in the schedule, subject to General Condition 17 - Underinsurance.

Inflation protectionThe sum insured on contents is index linked and will be adjusted each month in line with the percentage change in the ProducerPrice Index issued by the Department of Trade and Industry or suitable alternative index selected by us.

Provided that any adjustment made to the sum insured will be based on the latest figures available to us and at each renewal thepremium will be calculated on the adjusted sum insured then in force.

Protection after lossSubject to the provisions of the above Inflation protection clause the sum insured in respect of any property insured hereby whichsustains loss, destruction or damage by any peril insured hereby, will continue to be index linked following such loss, destruction ordamage while the property is being reinstated, provided that you take all reasonable steps to ensure that the reinstatement is carriedout without undue delay.

Basis of claims settlementFollowing loss, destruction or damage insured by this section and subject to the adequacy of the sums insured and to the limits ofliability we will pay in respect ofa) stock - the cost price of replacing the goods at the time of the loss, destruction or damageb) deeds, documents and business books - their value as stationery only together with the cost of clerical labour expended in writing

up and not for the value to you of the information contained thereinc) computer systems records - the value of the materials only together with the cost of clerical labour and computer time expended

in reproducing such records (excluding any expense in connection with the production of information to be recorded therein) andnot for the value to you of the information contained therein, for an amount not exceeding 5% of the sum insured on Nurserycontents

d) patterns, models, moulds, plans and designs - the value of the materials only together with the cost of labour expended inreinstatement of such property

e) all other property - the cost of repairing or reinstating the property equal to its condition when new

Provided thati) this is carried out without delay and in the most economical mannerii) when property is partially lost, destroyed or damaged our liability shall not exceed the estimated reinstatement cost which would

have been payable had it been wholly lost or destroyediii) until reinstatement has been carried out no payment shall be made beyond the amount which would be payable if an allowance

were made for wear, tear or depreciationiv) for the purpose of this sub-paragraph General Condition 17 - Underinsurance shall be deemed to read - whenever a sum insured

is declared to be subject to this underinsurance condition, if at the time of repair or reinstatement, the amount representing thecost which would have been incurred in repair or reinstatement if the whole of the property insured by any item insured herebyhad been lost or destroyed, exceeds the sum insured by such item at the commencement of the loss, destruction or damage, thenthe insured shall be considered as being your own insurer for the difference and shall bear a rateable proportion of the loss

v) where for any reason no payment is to be made on the basis of repair or reinstatement as new (liability being otherwise admitted)then our liability will be arrived at as if this basis of claims settlement had not been incorporated herein and sub- paragraph e)shall then be deemed to read - all other property - the cost of repair or replacement at the time of the loss, destruction or damageafter due allowance for wear, tear or depreciation.

Special exclusions (See also the General Exclusions on pages 49 and 50)We will not be liable under this section for1 the first £250 of each claim in respect of accidental damage to sanitary ware, underground pipes and cables2 the first £100 of any other claim after the application of the underinsurance condition3 loss, destruction or damage caused by other authorised users of the premises4 loss, destruction or damage occurring outside business hours unless the Nursery contents are stored in a securely locked hall,

room or cupboard at the premises

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5 loss, destruction or damage to Nursery contents stored in any outbuilding or basement caused by storm, flood, sudden escape ofwater from any fixed water installation, tank, apparatus or pipes or from any automatic sprinkler installation, unless such propertyis raised at leasta) 100mm above the ground floor level of the outbuildingb) 300mm above the floor level of the basement

6 breakage of or damage to glass or lettering or designs superimposed thereon (see Section 15)7 loss of metered water except where such loss is caused by any peril hereby insured against8 losses not directly associated with

the incident that caused you to claim.

Special condition (See also the General Conditions on pages 47 and 48)In the event of a claim under this section, we may impose an excess during the term of any period of insurance until any requiredrisk improvements have been implemented.

Additional clauses(a) Capital additions

Newly acquired equipment, machinery and plant are held covered before their inclusion in the schedule, for an amount notexceeding 10% of the sum insured on Nursery contents but this shall not include appreciation in value.

Youmust notify us of such capital additions as soon as possible and pay the appropriate additional premium that may be requiredto provide retrospective cover from the commencement date of the your liability for such property. Following such notification theprovisions of this clause are fully reinstated.

(b) DesignationFor the purpose of determining where necessary the item against which any property is insuredwe agree to accept the designationunder which such property has been entered in your books.

(c) ExtensionsExcept where specifically insured the contents ofa) outbuildings, annexes, tanks, bunds, gangways and conveniencesb) extensions adjoining or communicating with main buildings described hereinare deemed to be insured under the respective item applying to the main buildings.

(d) Non-invalidationThe insurance by this section, other than loss, destruction or damage by theft or any attempt thereat, shall not be invalidated byany act or omission or by any alteration whereby the risk of loss, destruction or damage is increased, unknown to you or beyondyour control , providing that you, immediately you become aware thereof, shall give notice to us and pay an additional premium ifrequired.

(e) Unoccupied buildingsNotice is to be given to us when any buildings or portions thereof become unoccupied by any authorised person or when any suchunoccupied building or portion thereof is again occupied by any authorised person and a suitable additional premium paid ifrequired.

(f) WorkmenWorkmen are allowed in all or any of the buildings for the purpose of effecting minor alterations, repairs, decorations andmaintenance without prejudice to this insurance.

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Section 4 – Loss of Revenue

CoverIn the event of damage to any building or other property or any part thereof used by you at the premises for the purpose of the businessor to any of your records of outstanding debit balances contained within the premises, we will by payment indemnify you in respect of

a) any loss of gross revenue or additional expenditure incurred as a result of the business at the premises being interrupted orinterfered with in consequence of such damage provided that at the time of the happening of the damage there shall be in forcean insurance covering your interest in the property at the premises against such damage and that payment shall have been madeor liability admitted therefor under such insurance

b) any net outstanding debit balances which you are unable to recover from customers during the indemnity period as a result ofdamage to such records and any additional expenditure incurred after such damage in tracing and establishing outstanding debitbalances

c) professional accountants’ charges incurred in accordance with the basis of claims settlement.

Additional cover ALoss as insured by this section resulting from interruption of or interference with the business in consequence of1 damage to property in the vicinity of the premises which prevents or hinders the use of or prevents access to the premises but

excluding damage to property of any public utility from which you obtain supplies or services2 damage to property at any

i) generating station or sub-station of the public electricity supply undertakingii) land based premises of the public gas supply undertaking or of any natural gas producer linked directly therewithiii) land based premises of the public telecommunications undertakingiv) waterworks or pumping station of the public water supply undertakingwithin the territorial limits from which you obtain electricity, gas or water supplies or telecommunication services

3 accidental failure of public supplies of electricity, gas or water at the terminal ends of the public supply undertaking‘s feed to thepremises excepti) in consequence of a deliberate act of any supply authority or the exercise by any such authority of its power to withdraw or

restrict supplyii) where such failure is for a period of less than sixty minutesiii) in consequence of a fault in any part of the installation belonging to you

4 damage to plans, deeds, briefs, manuscripts, books, documents and office records whilst temporarily removed from the premisesto elsewhere within the territorial limits

5 the compulsory closure of the premises by order of any competent public authority following:a) the occurrence at the premises of murder or suicideb) the occurrence at the premises of any outbreak of a human infectious or contagious diseasec) defective sanitation of the premises or the presence at the premises of vermin or pests;d) injury or illness of any person traceable to food or drink sold, supplied or provided at the premises;e) the occurrence within 25 miles of the premises of a notifiable human infectious or contagious disease

shall be deemed to be loss resulting from damage at the premises to property used by you for the purpose of the business.

Our liability under each of 5 a), b), c), d) and e) will not exceed £25,000 in any one period of insurance.

Additional cover BThe indemnity by this section is extended to cover the cost of wages paid to temporary employees hired solely to replace members ofstaff who have been suspended in accordance with Ofsted regulations (or the regulations of any other registering authority) as a directconsequence of an accusation of child abuse.

Provided that:a) the suspension shall be due solely to Ofsted regulations (or the regulations of any other registering authority)b) the suspension shall have followed a reported incident or allegation of child abusec) the maximum amount payable for any one replacement employee shall be £200 per week or 75% of the weekly wages paid to the

replacement employee, whichever is the lessd) the maximum period of payment shall be 5 weeks in respect of any one suspended employeee) our liability under this Additional cover shall not exceed £3,000 in any one period of insurance.

Limit of liabilityOur liability in respect of loss of gross revenue or net outstanding debit balances and their associated additional expenditure andaccountants’ charges shall not exceed in the aggregate in respect of any one occurrence nor in all in any one period of insurance thesum insured in the schedule.

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Basis of claims settlementOur liability shall not exceeda) the amount by which the gross revenue during the indemnity period shall fall short of the standard gross revenue in consequence

of the damage less any amount saved during the indemnity period in respect of such of the charges and expenses of the businesspayable out of gross revenue as may cease or be reduced in consequence of the damage

b) the additional expenditure necessarily and reasonably incurred in increase in cost of working for the sole purpose of avoiding ordiminishing the reduction in gross revenue which but for that expenditure would have taken place during the indemnity period inconsequence of the damage, but not exceeding the amount of reduction in gross revenue thereby avoided

c) the amount by which the net outstanding debit balances traced and received after the damage and during the indemnity periodfalls short of the outstanding debit balances at the time of such damage provided that our liability shall not exceed £10,000 inrespect of any one occurrence

d) the reasonable charges payable to your professional accountant which may be incurred for producing and reporting on detailsrequired by us under the terms of General Condition 4.

Special exclusions (See also the General Exclusions on pages 49 and 50)We will not be liable under this section for1 increased metered water charges except where such increased charges are caused by any peril insured against under Section 3 of

this policy2 loss due to

a) erasure loss distortion or corruption of information on computer systems or other records programs or software causeddeliberately by rioters strikers locked-out workers persons taking part in labour disturbances or civil commotion or maliciouspersons

b) other erasure loss distortion or corruption of information on computer systems or other records programs or software unlessresulting from any of the perils 1 to 15 of Section 3 of this policy in so far as it is not otherwise excluded

Special conditions (See also the General Conditions on pages 47 and 48)1 The insurance by this section shall not apply if the business be wound up, permanently discontinued or carried on by a liquidator

or receiver.2 At the end of each month you shall record the total amount outstanding in customers’ accounts and shall maintain a separate

record, in addition to the books of account, in a place other than the premises.3 If at the time of any damage the sum insured on gross revenue be less than the gross revenue which it is estimated would have

been earned during themaximum indemnity period had such damage not occurred, then the amount payable in respect of loss ofgross revenue and associated additional expenditure shall be proportionately reduced.

Additional clauses(a) Alternative trading

If during the indemnity period work shall be done or services shall be rendered elsewhere than at the premises for the benefit ofthe business either by you or by others on your behalf the money paid or payable in respect of such work or services shall bebrought into account in arriving at the gross revenue during the indemnity period.

(b) New businessFor the purpose of any claim arising from damage occurring before the completion of the first year’s trading of the business at thepremises, the terms “annual gross revenue” and “standard gross revenue” stated above are amended to “annual gross revenue(new business)” and “standard gross revenue (new business)” respectively.

(c) Payments on accountPa yments on account may be made to you during the indemnity period at our discretion subject to any necessary adjustment atthe termination of such period.

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Section 5 – Legal ExpensesThis is your Commercial Legal Expenses Section

This section will cover the insured person in respect of any insured incident arising in connection with the business.

We agree to provide the insurance in this section as long as:

(a) the date of occurrence of the insured incident happens during the period of insurance and within the territorial limits; and(b) any legal proceedings will be dealt with by a court, or other body which we agree to, in the territorial limits; and(c) in civil claims it is always more likely than not that an insured person will recover damages (or obtain any other legal remedy which

we have agreed to) or make a successful defence.

For all insured incidents, we will help in appealing or defending an appeal as long as the insured person tells us within the timelimits allowed that they want us to appeal. Before we pay any costs and expenses for appeals, we must agree that it is always morelikely than not that the appeal will be successful.

If a representative is used, we will pay the costs and expenses incurred for this.

We will pay Compensation Awards that we have agreed to.

Limit of LiabilityThe most we will pay for all claims resulting from one or more event arising at the same time or from the same originating cause isshown as the limit of indemnity in the schedule.

COVER

1 EMPLOYMENT DISPUTES AND COMPENSATION AWARDS(a) Employment Disputes

We will defend your legal rights:(1) prior to the issue of legal proceedings in a court or tribunal following the dismissal of an employee; or(2) in the resolution of unfair dismissal disputes under the ACAS Arbitration Scheme; or(3) in legal proceedings in respect of any dispute with

(a) an employee or ex-employee or a trade union acting on behalf of an employee or ex-employee which arises out of,or relates to, a contract of employment with you; or

(b) an employee, prospective employee or ex-employee arising from alleged breach of their statutory rights underemployment legislation.

Special exclusions(1) Any claim in respect of damages for personal injury or loss of or damage to property.(2) Any claim arising from or relating to any transfer of business which falls within the scope of the Transfer of Undertakings

(Protection of Employment) Regulations 2006 or the Transfer of Employment (Pension Protection) Regulations 2005.

(b) Compensation AwardsWe will pay:(1) any basic and compensatory award; and/or(2) an order for compensation following a breach of your statutory duties under employment legislationin respect of a claim we have accepted under insured incident 1(a).

Provided that(1) In cases relating to performance and/or conduct, you have throughout the employment dispute either:

(a) followed the ACAS Code of Disciplinary and Grievance Procedures as prepared by the Advisory Conciliation andArbitration Service; or

(b) followed equivalent codes of practice issued by the Labour Relations Agency in Northern Ireland; or(c) sought and followed advice from our legal advice service.

(2) For an order of compensation following your breach of statutory duty under employment legislation you have at all timessought and followed advice from our legal advice service since the date when you should have known about the employmentdispute.

(3) For any compensation award for redundancy or alleged redundancy or unfair selection for redundancy, you have sought andfollowed advice from our Claims Department prior to serving notice of redundancy.

(4) The compensation is awarded by a tribunal or through the ACAS Arbitration Scheme, under a judgment made after fullargument and otherwise than by consent or default, or is payable under settlement approved in writing in advance by us.

(5) The total of the compensation awards payable by us shall not exceed £1,000,000 in any one period of insurance.

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Special exclusions(1) Any compensation award relating to the following:

– trade union activities, trade union membership or non-membership;– pregnancy or maternity rights;– health and safety related dismissals brought under section 44 of the Employment Rights Act 1996;– statutory rights in relation to trustees of occupational pension schemes;– statutory rights in relation to Sunday shop and betting work.

(2) Non-payment of money due under the relevant contract of employment or statutory provision relating thereto.(3) Any award ordered because you have failed to provide relevant records to employees under the National Minimum Wage laws.(4) Any compensation award or increase in compensation award ordered by the tribunal for failure to comply with a

recommendation it has made, including non-compliance with a reinstatement or re-engagement order.

(c) Service OccupancyWe will negotiate for your legal rights against an employee or ex-employee to recover possession of premises owned by you,or for which you are responsible.

Special exclusionAny claim relating to defending your legal rights other than defending a counter-claim.

2 LEGAL DEFENCEAt your request(1) We will defend the insured person’s legal rights:

(a) prior to the issue of legal proceedings when dealing with the– Police– Health and Safety Executive and/or Local Authority Health andSafety Enforcement Officerwhere it is alleged that the insured person has or may have committed a criminal offence; or

(b) following an event which leads to the insured person being prosecuted in a court of criminal jurisdiction; or(c) if civil action is taken against the insured person for compensation under section 13 of the Data Protection Act 1998.We will also pay any compensation award made against the insured person under section 13 of the Data Protection Act 1998.

(2) We will defend your legal rights following civil action taken against you for wrongful arrest in respect of an accusation of theftalleged to have been carried out during the period of insurance.

(3) We will defend the insured person’s legal rights (other than your legal rights) if:(a) an event arising from their work as an employee leads to civil action being taken against them under legislation for

unlawful discrimination on the grounds of sex, sexual orientation, race, disability, age, religious belief or politicalopinion; or

(b) civil action is taken against them as a trustee of a pension fund set up for the benefit of your employees.(4) We will represent the insured person in appealing against the imposition or terms of any Statutory Notice issued under

legislation affecting your business.(5) We will represent you in appealing against the refusal of the Information Commissioner to register your application for

registration.(6) We will pay the attendance expenses of an insured person for jury service.

Provided that(1) In so far as proceedings under the Health and Safety at Work etc Act 1974 are concerned, the territorial limits shall be any

place where the Act applies.(2) At the time of the insured incident, you have registered with the Information Commissioner in respect of insured incident

(1)(c).

Special exclusionAny claim which leads to the insured person being prosecuted for infringement of road traffic laws or regulations in connectionwith the ownership, driving or use of a motor vehicle.

3 CONTRACT DISPUTESWe will negotiate for your legal rights in a contractual dispute arising from that agreement or that alleged agreement which hasbeen entered into by you or on your behalf for the purchase, hire, sale or provision of goods or of services.

Provided that(1) The amount in dispute exceeds £250. If the amount in dispute exceeds £5000, you will be responsible for the first £500 of

legal costs in each and every claim.(2) If the amount in dispute is payable in instalments, the instalments due and payable at the time of making the claim exceed

£250.

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(3) If the dispute relates to money owed to you, a claim under the policy is made within 90 days of the money becoming due andpayable.

Special exclusions(1) Any dispute arising from an agreement entered into prior to the inception date of this policy if the date of occurrence is within

the first 90 days of the inception date of this policy.(2) Any claim relating to the following:

– the settlement payable under an insurance policy;– a lease, licence or tenancy of land or buildings other than a dispute with a professional– adviser in connection with the drafting of a lease, licence or tenancy agreement;– a loan, mortgage, pension or any other financial product and choses in action;– a motor vehicle owned by, or hired or leased to, you.

(3) A dispute with an employee or ex-employee which arises out of, or relates to, a contract of employment with you.(4) A dispute which arises out of the:

– sale or provision of computer hardware, software, systems or services; or– the purchase or hire of computer hardware, software, systems or services tailored by a supplier to your own

specification.(5) A dispute arising from a breach or alleged breach of professional duty by an insured person.(6) The recovery of money and interest due from another party other than disputes where the other party intimates that a

defence exists.

4 DEBT RECOVERYWe will negotiate for your legal rights including enforcement of judgment to recover money and interest due from the sale orprovision of goods or services.

Provided that(1) The debt exceeds £250.(2) A claim for debt recovery under this section is made within 90 days of the money becoming due and payable.(3) We have the right to select the method of enforcement, or to forego enforcing judgment, if we are not satisfied that there are,

or will be, sufficient assets available to satisfy judgment.

Special exclusons(1) Any debt arising from an agreement entered into prior to the inception date of this policy if the debt is due within the first 90

days of the inception date of this policy.(2) Any claim relating to the following:

– the settlement payable under an insurance policy;– a lease, licence or tenancy of land or buildings;– a loan, mortgage, pension or any other financial product and choses in action;– a motor vehicle owned by, or hired or leased to, you.

(3) A dispute which arises out of the supply, hire, sale or provision of computer hardware, software, systems or services.(4) The recovery of money and interest due from another party where the other party intimates that a defence exists.

5 PROPERTY PROTECTION AND BODILY INJURY(a) Property Protection

We will negotiate for your legal rights in any civil action relating to material property which is owned by you, or yourresponsibility, following:(1) any event which causes physical damage to such material property; or(2) any nuisance or trespass.

Special exclusionsAny claim relating to the following:(1) a contract entered into by you;(2) goods in transit or goods lent or hired out;(3) goods at premises other than those occupied by you unless the goods are at such premises for the purpose of installations

or use in work to be carried out by you;(4) mining subsidence;(5) defending your legal rights other than in defending a counter-claim;(6) a motor vehicle owned or used by, or hired or leased to an insured person.

(b) Bodily InjuryAt your request, we will negotiate for an insured person’s and their family members’ legal rights following an event which causesthe death of, or physical injury to them.

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Special exclusionsAny claim relating to the following:(1) any illness, disease, shock or injury which develops gradually or is not caused by a specific or sudden accident; or(2) defending an insured person’s or their family members’ legal rights other than in defending a counter-claim; or(3) a motor vehicle owned or used by, or hired or leased to an insured person or their family members.

6 TAX PROTECTION(a) Full or Aspect Enquiries

We will negotiate on your behalf in respect of a full enquiry and/or aspect enquiry and represent you in any subsequentappeal proceedings.

(b) Tax Intervention EnquiriesWe will negotiate on your behalf and represent you in any dealings with HM Revenue and Customs in respect of a taxintervention enquiry.

(c) Employers’ ComplianceWe will negotiate on your behalf and represent you in any appeal proceedings in respect of a dispute concerning yourcompliance with Pay As You Earn or Social Security Regulations following a review by HM Revenue and Customs.

(d) VAT DisputesWe will negotiate on your behalf and represent you in any appeal proceedings following an assessment issued by HMRevenue and Customs in respect of Value Added Tax due.

Provided that(1) For all insured incidents, you have taken reasonable care to ensure that all returns are complete and correct and that such

returns are submitted within the statutory time limits allowed.(2) We will not pay more than £2000 for claims in respect of aspect enquiries or tax intervention enquiries.

Special exclusions(1) In respect of aspect enquiries and tax intervention enquiries the first £200 of costs and expenses in each and every claim.(2) Any insured incident arising from a tax avoidance scheme.(3) Any insured incident caused by your failure to register for Value Added Tax.(4) Any insured incident arising from any investigation or enquiries undertaken by HM Revenue and Customs Special

Investigations Section or Special Civil Investigations or the Revenue and Customs Prosecution Office.(5) Any insured incident arising from any investigation or enquiry by HM Revenue and Customs into alleged dishonesty or alleged

criminal offences.

7 STATUTORY LICENCE PROTECTIONWe will represent you in appealing to the relevant statutory or regulatory authority, court, or tribunal following a decision by alicensing or regulatory authority to suspend, or alter the terms of, or refuse to renew, or cancel your licence, mandatory registrationor British Standard Certificate of Registration.

Special exclusions(1) An original application or application for renewal of a statutory licence, mandatory registration or British Standard Certificate

of Registration.(2) Any licence appeal relating to the ownership, driving or use of a motor vehicle.

SPECIAL EXCEPTIONS APPLYING TO THIS SECTION

1 Any claim reported to usmore than 180 days after the date the insured person should have known about the insured incident.2 Costs and expenses incurred before the written acceptance of a claim by us.3 Fines, penalties, compensation or damages which the insured person is ordered to pay by a court or other authority other

than compensation awards as covered under insured incident 1(b) Compensation Awards and 2 Legal Defence.4 Any claim relating to patents, copyrights, trademarks, merchandise marks, registered designs, intellectual property, secrecy

and confidentiality agreements.5 Any claim relating to rights under a franchise or agency agreement entered into by you.6 Any insured incident deliberately or intentionally caused by an insured person.7 A dispute with us not otherwise dealt with under Special Condition 7 of this section.8 Any claim relating to a shareholding or partnership share in your business unless such shareholding was acquired under a

scheme open to all your employees or a substantial number of them of a certain minimum grade other than your directors orpartners.

9 Judicial review.10 Legal action an insured person takes which we or the representative have not agreed to or where the insured person does

anything that hinders us or the representative.11 When either at the commencement of or during the course of a claim, you are bankrupt or have filed a bankruptcy petition or

winding-up petition, or have made an arrangement with your creditors, or have entered into a deed of arrangement or are inliquidation or part or all of your affairs or property are in the care or control of a receiver or administrator.

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SPECIAL CONDITIONS APPLYING TO THIS SECTION

1 An insured person must:(a) keep to the terms and conditions of this section;(b) notify us immediately of any alteration which may materially affect our assessment of the risk;(c) take reasonable steps to keep any amount we have to pay as low as possible;(d) try to prevent anything happening that may cause a claim;(e) send everything we ask for, in writing;(f) give us full details of any claim as soon as possible and give us any information we need.

2 (a) We can take over and conduct in the name of the insured person, any claim or legal proceedings at any time.We can negotiate any claim on behalf of an insured person.

(b) We will choose the representative to represent an insured person in any proceedings where we are liable to pay acompensation award. In any other case an insured person is free to choose a representative (by sending us a suitablyqualified person’s name and address) if:(i) we agree to start legal proceedings and it becomes necessary for a lawyer to represent the interests of an insured person

in those proceedings; or(ii) there is a conflict of interest.

(c) Before an insured person chooses a lawyer or an accountant, we can appoint a representative.(d) Any representative will be appointed by us and represent an insured person according to our standard terms of appointment

(which may include a ‘no win, no fee’ agreement). The representative must co-operate fully with us at all times.(e) We will have direct contact with the representative.(f) An insured person must co-operate fully with us and with the representative and must keep us up-to-date with the progress

of the claim.(g) An insured person must give the representative any instructions that we require.

3 (a) An insured person must tell us if anyone offers to settle a claim and must not agree to any settlement without our writtenconsent.

(b) If an insured person does not accept a reasonable offer to settle a claim, we may refuse to pay further costs and expenses.(c) We may decide to pay the insured person the amount of damages that the insured person is claiming or is being claimed

against them instead of starting or continuing legal proceedings.4 (a) If we ask, an insured person must tell the representative to have costs and expenses taxed, assessed or audited.

(b) An insured person must take every step to recover costs and expenses that we have to pay and must pay us any costs andexpenses that are recovered.

5 If a representative refuses to continue acting for an insured person with good reason or if an insured person dismisses arepresentative without good reason, the cover we provide will end at once, unless we agree to appoint another representative.

6 If an insured person settles a claim or withdraws their claim without our agreement, or does not give suitable instructions to arepresentative, the cover we provide will end at once and we will be entitled to re-claim any costs and expenses paid by us.

7 If there is a disagreement about the waywe handle a claim that is not resolved through our internal complaints procedure, we andthe insured person can choose a suitably qualified person to arbitrate. We and the insured person must both agree to the choiceof this person in writing. Failing this we will ask the president of a national association relevant to the arbitration to choose asuitably qualified person. All costs of resolving the matter must be paid by the party whose argument is rejected. If the decisionis not clearly made against either party, the arbitrator will decide how the costs are shared.

8 Wemay at our discretion require you to obtain an opinion from counsel at your expense as to the merits of a claim or proceedings.If counsel’s opinion indicates that there are reasonable grounds for the pursuit or defence of a claim or proceedings, the cost ofobtaining the opinion will be paid by us.

9 We will not pay any claim covered under any other policy, or any claim that would have been covered by any other policy if thissection did not exist.

10 This section will be governed by English law.11 All Acts of parliament within this section shall include equivalent legislation in Scotland, Northern Ireland, the Isle of Man or the

Channel Islands as the case may be.

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HOWWE CAN HELP

To make a claim under this section of your policy, please telephone us on 0117 934 0568.We will ask you about your legal disputeand if necessary call you back at an agreed time to give you legal advice. If your dispute needs to be dealt with as a claim under thissection of the policy, we will provide you with a claim reference number. At this point we will not be able to confirm that you arecovered but we will pass the information you have given us to our claims handling teams and explain what to do next.

If you prefer to report your claim in writing, please send it to the Claims Department,DAS Legal Expenses Insurance Company Limited, DAS House, Quay Side, Temple Back, Bristol BS1 6NH.

Alternatively you can email your claim to us at newclaims@das.co.uk

Claims are usually handled by a representative appointed by us, but sometimes we deal with them ourselves.

When we cannot help

Please do not ask for help from a solicitor or accountant before we have agreed. If you do, we will not pay the costs involved.

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Section 6 – Personal Accident for Children at the Nursery

CoverWe will pay as compensation to you or your legal personal representative the relevant amount shown below if any child attending theNursery sustains accidental bodily injury caused solely and directly by violent external and visible means during the operative time inany period of insurance and such bodily injury directly and independently of any other cause results within twelve months in death,loss of limb, loss of sight, permanent total disablement or temporary total disablement.

Result Compensation

1 Death £5,0002 Loss of limb £20,0003 Loss of sight £20,0004 Permanent total disablement £20,000

Special exclusions (See also the General Exclusions on pages 49 and 50)We will not be liable under this section for death, loss of limb, loss of sight, permanent total disablement, temporary total disablementcaused by:1 insanity, intentional self-injury, suicide or attempted suicide, participation in any criminal act or civil commotion by any child

attending the Nursery, or by any such child being under the influence of or being affected by intoxicating liquor or drugs exceptdrugs taken in accordance with proper medical prescription and directions and not for the treatment of drug addiction

2 any child attending the Nursery engaging in abseiling, activities necessitating the use of underwater breathing equipment, armedor unarmed combat sports, bungee jumping, climbing necessitating the use of ropes or guides, flying of any kind (other than as apassenger in a fully licensed passenger carrying aircraft), hunting, ice hockey, motor cycling other than by power assisted pedalcycle, parachuting, polo, pot holing or similar underground activities, professional sport, riding or driving in any kind of race,speed or duration test or practise therefor or winter sports

3 pregnancy or childbirth4 any communicable disease.

Special conditions (See also the General Conditions on pages 47 and 48)1 Compensation shall not be payable for more than one of the following: death, loss of limb, loss of sight, permanent total

disablement, in respect of any one child attending the Nursery.2 Any child attending the Nursery shall as often as required submit to a medical examination on our behalf at our expense and in

the case of death we shall be entitled to have a post mortem examination at our expense.

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Section 7 – Personal Accident for Nursery Officials

CoverWe will pay as compensation to you or your legal personal representative the relevant amount shown below if a Nursery official agedbetween 16 to 70 years sustains accidental bodily injury caused solely and directly by violent external and visible means during theoperative time in any period of insurance and such bodily injury directly and independently of any other cause results within twelvemonths in death, loss of limb, loss of sight, permanent total disablement or temporary total disablement.

Result Compensation

1 Death £20,0002 Loss of limb £20,0003 Loss of sight £20,0004 Permanent total disablement £20,0005 Temporary total disablement £100 per week6 Medical expenses £250

Special exclusions (See also the General Exclusions on pages 49 and 50)We will not be liable under this section for death, loss of limb, loss of sight, permanent total disablement, temporary total disablement(or associated medical expenses) caused by:1 insanity, intentional self-injury, suicide or attempted suicide, participation in any criminal act or civil commotion by any Nursery

official, or by any Nursery official being under the influence of or being affected by intoxicating liquor or drugs except drugs takenin accordance with proper medical prescription and directions and not for the treatment of drug addiction

2 any Nursery official engaging in abseiling, activities necessitating the use of underwater breathing equipment, armed or unarmedcombat sports, bungee jumping, climbing necessitating the use of ropes or guides, flying of any kind (other than as a passenger ina fully licensed passenger carrying aircraft), hunting, ice hockey, motor cycling other than by power assisted pedal cycle,parachuting, polo, pot holing or similar underground activities, professional sport, riding or driving in any kind of race, speedor duration test or practise therefor or winter sports

3 pregnancy or childbirth4 any communicable disease

Special conditions (See also the General Conditions on pages 47 and 48)1 Compensation shall not be payable for more than one of the following: death, loss of limb, loss of sight, permanent total

disablement, in respect of any one Nursery official.2 Compensation shall not be payable for temporary total disablement

a) until the end of the period of disablement but we will on request make interim payments at intervals of not less than fourweeks

b) for more than 104 weeks from the date of sustaining injury in respect of any one bodily injury.3 The total amount payable as compensation for temporary total disablement shall be deducted from any subsequent compensation

payment for death, loss of limb, loss of sight, permanent total disablement that follows from the same cause.4 Any Nursery official shall as often as required submit to a medical examination on our behalf at our expense and in the case of

death we shall be entitled to have a post mortem examination at our expense.

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Section 8 – Loss of Registration Certificate

CoverWe will indemnify you against depreciation in value of your interest in the premises or the business resulting from the forfeiture of theregistration certificate under the provisions of the regulations relating to such registration certificates or the refusal of the appropriateauthority to renew such registration certificate provided that such forfeiture or refusal to renew results from causes beyond yourcontrol.

Limit of liabilityOur liability during any one period of insurance shall not exceed £100,000 (or such other amount stated in the schedule).

Special exclusions (See also the General Exclusions on pages 49 and 50)We will not be liable under this section if1 you are entitled to obtain compensation under the provisions of any Act of Parliament in respect of refusal to renew the registration

certificate2 the forfeiture or refusal to renew arises directly from any town or country planning, improvement, re-development or compulsory

purchase order or the surrender, reduction or re-distribution of registration certificates in connection therewith3 the forfeiture or refusal to renew results from any alteration in the law4 a) any alterations to the premises requiring the consent of the appropriate registering authority are made without their approval

b) the premisesi) are closed for any period not required by lawii) are not maintained in a sanitary condition or satisfactory state of repair

c) any direction or requirement of the appropriate registering authority shall not be complied withd) the forfeiture of or refusal to renew the registration certificate is occasioned wholly or partly by or through your bankruptcy,

connivance, insolvency, misconduct, neglect or omission or by your failure to take any steps necessary for keeping theregistration certificate in force.

Special conditions (See also the General Conditions on pages 47 and 48)1 It is a condition precedent to liability that you shall immediately advise us in writing and supply such additional information and

give such assistance as we may reasonably require on becoming aware of anya) change in tenancy or management of the premisesb) transfer or proposed transfer of the registration certificatec) complaint about the premises or the conduct or control of the businessd) proceedings against or conviction of you or the registration certificate holder of the premises for any breach of the law or

other matters whereby the character or reputation of the person concerned is affected or called into question with respect tohis honesty, moral standing or sobriety

e) alteration in the purpose for which the premises are usedf) objection to the application for the renewal of the registration certificate or any circumstances which may endanger the

renewal of the registration certificate.

2 In the event of the registration certificate being forfeited or renewal being refused it is a condition precedent to liability that youshall (at your own expense unless otherwise stated)a) give written notice to us within twenty-four hours of becoming aware of such event stating the grounds upon which the

registration certificate was forfeited or renewal refusedb) apply if practicable and if required by us for the grant of a new registration certificate for the same or alternative premises as

may enable you to continue the business in a similar or alternative formc) take all practicable steps to minimise any claimd) within 30 days of being requested to do so by us, provide a statement of the loss and such documents and accounts as may

be reasonably required by us to verify such statemente) if requested to do so by us, make a statutory declaration as to the accuracy and completeness of the statement of the loss

and allow us free access to the premises and all books and accounts as may be necessary to ascertain the depreciation in thevalue of the premises or the business

f) at our request and at our expense, do and concur in doing and permit to be done all such acts as may be reasonably requiredby us for the purpose of enforcing any rights or remedies or of obtaining relief or indemnity from any other parties.

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Section 9 – Nursery Money

CoverWe will indemnify you against physical loss ofmoney pertaining to the business and belonging to you occurring within the territoriallimits.

Limits of liabilityOur liability will not exceed the limits stated below in respect of any one occurrence.Item Limit1 non negotiable money £100,0002 money, other than non negotiable money, whilst

a) in transit in the personal custody of any authorised Nursery officialor whilst contained in a bank night safe £2,000

b) on the premises during business hours £2,000c) on the premises outside business hours contained in locked safes as

approved by Morton Michel £1,000d) on the premises outside business hours not contained in a locked safe £250e) in your home or the home of any authorised Nursery official £500

Special exclusions (See also the General Exclusions on pages 49 and 50)We will not be liable under this section for1 loss from any unattended vehicle2 any loss due to the fraud or dishonesty of any Nursery official unless such loss is discovered within seven working days of the date

of its occurrence3 clerical or accounting errors or shortages due to error or omission4 loss caused by dishonoured cheques or by the use of counterfeitmoney5 losses not directly associated with the incident that caused you to claim6 loss, destruction or damage caused by theft or attempted theft occurring outside business hours to any till or cash register unless

its drawer has been left in an open position.

Special conditions (See also the General Conditions on pages 47 and 48)1 A true and complete account must be kept of all money in transit and on the premises and such record must be deposited in a

secure place other than in any safe containing the money.2 During business hours any safe must be kept locked other than whenmoney or other property is being placed therein or removed

therefrom and the keys kept in your personal custody or the personal custody of any authorised Nursery official.3 Outside business hours any safe must be kept locked and its keys removed from the premises.4 Money on the premises during business hours must be kept in a locked safe or locked desk or locked filing cabinet when the

amount exceeds £250.5 One copy of each completed credit card voucher must at all times be kept in a secure place separate from its counterpart.

Special extension – Personal Assault

CoverWe will pay as compensation to you or your legal personal representative the relevant amount shown below if in the course of thebusiness a Nursery official aged between 16 to 70 years sustains accidental bodily injury consequent upon robbery or hold up or anyattempt thereat occurring within the territorial limits and such bodily injury directly and independently of any other cause results withintwelve months in death loss or disablement as stated in the Results.

Results Compensation1 Death £20,0002 Loss of limb £20,0003 Loss of sight £20,0004 Permanent total disablement £20,0005 Temporary total disablement £100 per week

Special exclusions (See also the General Exclusions on pages 49 and 50)We will not be liable under this Special extension for death loss or disablement caused by1 a Nursery official being under the influence of or being affected by intoxicating liquor or drugs except drugs taken in accordance

with proper medical prescription and directions and not for the treatment of drug addiction2 pregnancy or childbirth3 any communicable disease.

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Special conditions (See also the General Conditions on pages 47 and 48)1 Compensation shall not be payable for more than one of Results 1 -4 in respect of any one Nursery official.2 Compensation shall not be payable for Result 5

a) until the end of the period of disablement but we will on request make interim payments at intervals of not less than fourweeks

b) for more than 104 weeks from the date of sustaining injury in respect of any one bodily injury.3 The total amount payable as compensation under Result 5 shall be deducted from any subsequent compensation payment under

Results 1-4 that follows from the same cause.4 A Nursery official shall as often as required submit to a medical examination on our behalf at our own expense and in the case of

death we shall be entitled to have a post mortem examination at our own expense.

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Section 10 – Nursery Officials’ Personal Money

CoverWe will indemnify you on behalf of the Nursery official against physical loss of Nursery officials’ personal money occurring at thepremises during business hours.

Limit of liabilityOur liability in respect of any one occurrence shall not exceed £100 any one Nursery official.

Special exclusions (See also the General Exclusions on pages 49 and 50)We will not be liable under this section for1 any loss due to the fraud or dishonesty of any Nursery official2 clerical or accounting errors or shortages due to error or omission3 loss caused by dishonoured cheques or by the use of counterfeitmoney4 losses not directly associated with the incident that caused you to claim5 any amount recoverable under any other policy of insurance

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Section 11 – Nursery Officials’ Personal Effects

CoverWe will indemnify you on behalf of the Nursery official in respect of loss, destruction or damage to the personal clothing or effects ofany Nursery official caused by any accident or misfortune occurring on the premises during a Nursery session.

Limit of liabilityOur liability in respect of any one occurrence shall not exceed £1,000 any one Nursery official.

Basis of claims settlementFollowing loss, destruction or damage insured by this section and subject to the limit of liability we will pay the cost of repair orreplacement of the property at the time of the loss, destruction or damage after due allowance for wear, tear or depreciation.

Special exclusions (See also the General Exclusions on pages 49 and 50)We will not be liable under this section for1 the first £50 of each claim2 property more specifically insured3 wear, tear or depreciation or diminution in value4 inherent vice, latent defect, faulty workmanship, defective design, plan or specification or the use of faulty materials5 atmospheric or climatic conditions or any other gradually operating cause, rot, fungus, rust, corrosion, woodworm, moths, insects,

vermin or pests6 any process involving heating, drying, cleaning, dyeing, staining, repairing, restoring, renovating, fitting, alteration or maintenance

of any property7 use of any article contrary to manufacturers’ instructions.

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Section 12 – Nursery Children’s Personal Effects

CoverWe will indemnify you on behalf of the parent or guardian of the child in respect of loss, destruction or damage to the personal clothingor effects of any child attending the Nursery caused by any accident or misfortune occurring on the premises during a Nursery session.

Limit of liabilityOur liability in respect of any one occurrence shall not exceed £250 any one child.

Basis of claims settlementFollowing loss, destruction or damage insured by this section and subject to the limit of liability we will pay the cost of repairreplacement of the property at the time of the loss, destruction or damage after due allowance for wear, tear or depreciation.

Special exclusions (See also the General Exclusions on pages 49 and 50)We will not be liable under this section for1 the first £25 of each claim2 property more specifically insured3 wear, tear or depreciation or diminution in value4 inherent vice, latent defect, faulty workmanship, defective design, plan or specification or the use of faulty materials5 atmospheric or climatic conditions or any other gradually operating cause, rot, fungus, rust, corrosion, woodworm, moths, insects,

vermin or pests6 any process involving heating, drying, cleaning, dyeing, staining, repairing, restoring, renovating, fitting, alteration or

maintenance of any property7 use of any article contrary to manufacturers’ instructions.

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Section 13 – Contents in Transit

CoverWe will indemnify you in respect of loss, destruction or damage to property insured whilst in the course of transit in or on any vehicleowned or operated by you within the territorial limits including whilst loading and unloading.

Limit of liabilityOur liability in respect of any one occurrence will not exceed the sum insured by this section.

Sum insured£1,000 any one vehicle (or such other amount stated in the schedule), subject to General Condition 17 - Underinsurance.

Basis of claims settlementFollowing loss, destruction or damage insured by this section and subject to the adequacy of the sum insured and to the limit of liabilitywe will pay the cost price of replacing the goods at the time of the loss, destruction or damage.

Special exclusions (See also the General Exclusions on pages 49 and 50)We will not be liable under this section for1 the first £50 of each claim after the application of the underinsurance condition2 loss, destruction or damage by theft or attempted theft from any unattended vehicle3 delay, loss of market or loss of profit4 losses not directly associated with the incident that caused you to claim5 breakage of china, glass or other brittle articles unless caused by fire, theft or an accident involving the vehicle6 loss or destruction of or damage to

a) livestock or other living creatures or organisms or culturesb) jewellery, watches, precious metals and stones, non-ferrous metals, bullion, furs, works of art, money, securities or stampsc) tobacco, cigarettes, cigars, wines, spirits, computer games and discs, compact discs, cassettes, audio, television, video and

photographic equipment, computer hardware software and ancillary equipment and clothingd) explosives or other dangerous goods

7 loss, destruction or damage caused bya) marring, scratching or denting, mechanical or electrical defect, failure, breakdown or derangementb) atmospheric or climatic conditions or any other gradually operating cause, rot, fungus, rust, corrosion, woodworm, moths,

insects, vermin or pests8 loss, destruction or damage due to leakage, spillage, contamination or deterioration unless caused by fire, theft or overturning or

collision involving the vehicle9 loss, destruction or damage resulting from

a) faulty packing or labellingb) storm or malicious damage to or theft or attempted theft of property conveyed in any soft or open topped or soft or open sided

vehicle.

Special condition (See also the General Conditions on pages 47 and 48)You shall take all reasonable measures to ensure that any vehicles owned or operated by you are roadworthy and loaded in a safe andappropriate manner.

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Section 14 – Deterioration of Refrigerated/Frozen Food

CoverWe will indemnify you in respect of loss, destruction or damage to refrigerated stock at the premises contained in any freezer orrefrigerated cabinet, caused by deterioration or putrefaction due to1 a rise or fall in temperature in the refrigerated chamber of any such cabinet resulting from

a) breakdown of or accidental damage to its refrigerating plant or associated thermostatic or other control devicesb) failure of the public electricity supply unless due to a deliberate act of the public electricity supply authority or the exercise

by any such authority of its power to withhold or restrict supply2 contamination by the escape of refrigerant fumes.

Limit of liabilityOur liability in respect of any one occurrence will not exceed the sum insured by this section.

Sum insured£2,500 (or such other amount stated in the schedule), subject to General Condition 17 - Underinsurance.

Basis of claims settlementFollowing loss, destruction or damage insured by this section and subject to the adequacy of the sum insured and to the limit of liabilitywe will pay the cost price of replacing the goods at the time of the loss, destruction or damage.

Special exclusions (See also the General Exclusions on pages 49 and 50)We will not be liable under this section for1 the first £25 of each claim after the application of the underinsurance condition2 refrigerated stock contained in any cabinet which is more than ten years old3 losses not directly associated with the incident that caused you to claim.

WarrantyWarranted that during the currency of this policy there shall be in force a manufacturer’s guarantee or a maintenance contract on anyfreezer or refrigerated cabinet which does not have hermetically sealed motors and compressors.

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Section 15 – Glass

CoverWe will indemnify you in respect of

1 breakage of or damage to fixed plain plate or sheet or wired or laminated or toughened glass at the premises, together with thenecessary cost of temporary boarding up pending replacement and the cost of repairing window and door frames as a result ofsuch breakage or damage

2 loss, destruction or damage to alarm foil caused by the breakage of glass at the premises for an amount not exceeding £500 inany one period of insurance

3 breakage at the premises of fixed mirrors and fixed glass in showcases, counters and display cabinets

4 breakage of or damage to neon and illuminated signs and fixed glass therein.

Special exclusions (See also the General Exclusions on pages 49 and 50)We will not be liable under this section for1 the first £50 of each claim2 glass which was broken or cracked before the insurance commenced3 superficial scratching, chipping or cracking4 breakage caused during installation or removal or whilst alterations or repairs are being effected to the premises5 breakage of armoured, bent or other special glass or lettering or designs superimposed on glass.

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Section 16 – Computer Breakdown

CoverWe will indemnify you in respect of1 breakdown or derangement of computing and ancillary equipment happening anywhere in the territorial limits and the loss of

information stored on integral fixed disks within the computing and ancillary equipment.

Our liability in respect of any one occurrence will not exceed £10,000.

2 Accidental loss, destruction or damage to computer records and the loss of information stored on the computer records caused bybreakdown or derangement of computer and ancillary equipment happening anywhere in the territorial limits.

Our liability in respect of any one occurrence will not exceed £5,000.

3 The additional expenditure necessarily and reasonably incurred and the reasonable charges payable by you to your professionalaccountants for producing particulars of such a claim as a result of interruption or interference to the computer operations ofthe business caused bya) breakdown or derangement of the property insured by this section happening anywhere in the territorial limitsb) loss of information insured by this section.

Our liability in respect of any one occurrence will not exceed £5,000.

Additional cover

Additional Rental ChargesThe cover under Item 3 is extended to include additional rental costs incurred following the replacement of a maintenance, lease or hireagreement in respect of the computing and ancillary equipment by a new contract for similar computing and ancillary equipment andconsequent upon breakdown or derangement insured by this section up to a sum insured of £1,000

Consulting Engineers’ FeesThe cover is extended to include the cost incurred by you with the our consent for consulting engineers’ fees in conducting eitherinvestigations or tests into the possible repair (whether or not successful) replacement or reinstatement following breakdown orderangement insured by this section up to a sum insured of £1,000.

Debris Removal CostsThe cover is extended to include the costs necessarily and reasonably incurred in the removal of that part of computing and ancillaryequipment which suffers breakdown or derangement insured by this section up to a sum insured of £1,000.

Expediting CostsThe cover is extended to include the cost necessarily and reasonably incurred in either the making of temporary repairs or theexpediting of reinstatement or replacement of computing and ancillary equipment following breakdown or derangement insured by thissection up to a sum insured of £1,000.

Modification costsThe cover is extended to include eitheri) the cost of the modification of the computing and ancillary equipment orii) the costs of replacement of computer records together with the reinstatement of either programs or information thereonwhichever is less, to achieve compatibility in the event that the breakdown or derangement of the computing and ancillary equipmenthas resulted in undamaged computer records being incompatible with the replacement computer and ancillary equipment up to a suminsured of £1,000.

Basis of claims settlementFollowing breakdown or derangement insured by this section and subject to the adequacy of the limits of liability we will pay the costof repairing or replacing the property equal to its condition when new provided that

a) this is carried out without delay and in the most economical mannerb) when property is partially destroyed or damaged by breakdown or derangement our liability shall not exceed the estimated

replacement cost which would have been payable had it been wholly destroyed.

Special exclusions (See also the General Exclusions on pages 49 and 50)We will not be liable under this section for1 the first £100 of each claim

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2 breakdown or derangement caused by or consisting of wear and tear, deterioration due to atmospheric or climatic conditions, rustor corrosion

3 accidental loss, damage or destruction recoverable under any guarantee, maintenance, rental, hire or lease agreement4 increase in cost of working incurred during the first 48 hours following breakdown or derangement of any item of computing and

ancillary equipment if a guarantee, maintenance, rental, hire or lease agreement is not in force on such item5 breakdown or derangement of computing and ancillary equipment occurring whilst being used by children6 lost or damaged data caused by hacking or virus or similar mechanism7 breakdown or derangement of any item of computing and ancillary equipment unless such item is at the time of the breakdown or

derangement the subject of a guarantee, maintenance, rental, hire or lease agreement which must provide a minimum service ofeither on-call remedial or corrective maintenance at inclusive cost.

Special condition (See also the General Conditions on pages 47 and 48)1 Back-up copies of computer system records and licensed software to be kept away from the premises.

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Section 17 – All Risks

CoverWe will indemnify you in respect of loss, destruction or damage to unspecified Nursery contents caused by any accident or misfortuneoccurring within the territorial limits.

Limit of liabilityOur liability in respect of any one occurrence will not exceed the sum insured by this section.

Sum insured£1,000 subject to General Condition 17 Underinsurance

Specified Items ExtensionThe insurance by this section is extended to apply to the items specified in the schedule, each for the sum insured stated in theschedule and each subject to General condition 17 Underinsurance.Any additional terms, conditions or exclusions will be as stated in the schedule.

Basis of claims settlementFollowing loss, destruction or damage insured by this section and subject to the adequacy of the sum insured and to the Limit of liabilitywe will pay the cost of repairing or replacing the property equal to its condition when new provided that

a) this is carried out without delay and in the most economical mannerb) when property is partially lost, destroyed or damaged our liability shall not exceed the estimated replacement cost which

would have been payable had it been wholly lost or destroyedc) until replacement has been carried out no payment shall be made beyond the amount which would be payable if an allowance

were made for wear, tear or depreciationd) for the purposes of this sub-paragraph General Condition 17 Underinsurance shall be deemed to read -

whenever a sum insured is declared to be subject to this underinsurance condition, if at the time of repair or replacementthe amount representing the cost which would have been incurred in repair or replacement if the whole of the propertyinsured by any item insured hereby had been lost or destroyed exceeds the sum insured by such item at the time of theloss, destruction or damage, then you shall be considered as being your own insurer for the difference and shall bear arateable proportion of the loss

e) where for any reason no payment is to be made on the basis of repair or replacement as new (liability being otherwiseadmitted) then our liability will be arrived at as if this basis of claims settlement had not been incorporated herein and thebasis of claims settlement shall then be deemed to read -

following loss, destruction or damage insured by this section and subject to the adequacy of the sum insured and to theLimit of liability we will pay the cost of repair or replacement of the property at the time of the loss, destruction ordamage after due allowance for wear, tear or depreciation.

Special exclusions (See also the General Exclusions on pages 49 and 50)We will not be liable under this section for1 the first £100 of each claim after the application of the underinsurance condition2 loss, destruction or damage caused by

a) wear, tear or depreciation or diminution in valueb) inherent vice, latent defect, faulty workmanship, defective design, plan or specification or the use of faulty materialsc) marring, scratching, denting, mechanical or electrical defect, failure, breakdown or derangementd) atmospheric or climatic conditions or any other gradually operating cause, rot, fungus, rust, corrosion, woodworm, moths,

insects, vermin or pestse) any process involving heating, drying, cleaning, dyeing, staining, repairing, restoring, renovating, fitting, alteration or

maintenance of any propertyf) use of any article contrary to manufacturer ’s instructionsg) storm or flood unless the property is contained in an enclosed vehicle or in a building

3 loss, destruction or damage by theft or attempted theft from any unattended vehicle4 breakage of brittle articles unless forming part of photographic equipment5 losses not directly associated with the incident that caused you to claim.

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Section 18 – Buildings

This section applies only if a sum insured is shown for Section 18 in the schedule

CoverWe will indemnify you in respect of loss, destruction or damage to the buildings caused by the following perils1 fire (whether resulting from explosion or otherwise) not occasioned by or happening through

a) its own spontaneous fermentation or heatingb) earthquake or subterranean fire

2 lightning3 explosion but excluding loss, destruction or damage (other than loss, destruction or damage by fire resulting from explosion)

a) caused by or consisting of the bursting of a boiler (not being a boiler used for domestic purposes only) economiser or othervessel, machine or apparatus in which internal pressure is due to steam only and belonging to you or under your control

b) in respect of and originating in any vessel machinery or apparatus or its contents, belonging to you or under your controlwhich requires to be examined to comply with any statutory regulations unless such vessel, machinery or apparatus shall bethe subject of a policy or other contract providing the required inspection service

4 aircraft and other aerospatial devices or articles dropped therefrom5 theft or any attempt thereat involving forcible and violent entry to or exit from the buildings6 riot, civil commotion, strikers, locked-out workers or persons taking part in labour disturbances or malicious persons acting on

behalf of or in connection with any political organisation but excluding loss, destruction or damage caused in Northern Ireland orresulting from cessation of work

7 malicious persons not acting on behalf of or in connection with any political organisation but excluding loss, destruction ordamage by theft or any attempt thereat

8 earthquake or subterranean fire9 impact by any mechanically propelled vehicle (whether the vehicle be licensed for normal road use or not) or by goods falling

therefrom or by animals10 storm but excluding loss, destruction or damage

a) caused byi) the escape of water from the normal confines of any natural or artificial watercourse, lake, reservoir, canal or damii) inundation from the sea, whether resulting from storm or otherwiseiii) frost, subsidence, ground heave or landslip

b) attributable solely to change in the water table levelc) to fences and gates

11 flood but excluding loss, destruction or damagea) caused by frost, subsidence, ground heave or landslipb) attributable solely to change in the water table levelc) to fences and gates

12 sudden escape of water from any fixed water installation, tank, apparatus or pipes but excluding loss, destruction or damage bywater discharged or leaking from any automatic sprinkler installation

13 water accidentally discharged or leaking from any automatic sprinkler installation in the premises or the buildings not occasionedby or happening througha) freezing whilst the premises or the buildings in your ownership or tenancy are empty or disusedb) explosion, the blowing up of buildings, blasting, earthquake or subterranean fire or heat caused by fire but excluding loss or

destruction of or damage to such installation other than that caused by water accidentally discharged or leaking from anysuch installation

subject to the following special conditionsi) you shall take all reasonable steps to prevent frost and other damage to any such automatic sprinkler installation and to

prevent the freezing of water in any part of such installation and so far as his responsibility extends to maintain all suchinstallations including the automatic external alarm signals in efficient working condition and in the event of any dischargeor leakage from any such installation you shall do and permit to be done all things practicable whether by removal orotherwise to save and protect the property insure

ii) when any changes, repairs or alterations to any such automatic sprinkler installation are proposed written notice thereof isto be given to us and its agreement obtained in writing

iii) we shall have access to the premises and the buildings at all reasonable times for the purposes of inspection and ifwe notifyyou of defects in the construction or condition of any automatic sprinkler installation requiring alteration or repair we mayalso at our option by notice in writing suspend this insurance until such alterations or repairs be made and approved by us

14 sudden escape of oil from any fixed installation15 falling trees or branches but excluding loss, destruction or damage

a) caused by felling or lopping carried out by or on behalf of the insuredb) to fences and gates

16 accidental damage but excludinga) wear, tear or depreciation or diminution in valueb) loss, destruction or damage caused by or arising from

i) frost, subsidence, ground heave or landslip or from settlement or bedding down of new structures

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ii) collapse or cracking of buildingsiii) inherent vice, latent defect, faulty workmanship, defective design, plan or specification or the use of faulty materialsiv) marring, scratching or denting or mechanical or electrical defect, failure, breakdown or derangementv) atmospheric or climatic conditions or any other gradually operating cause, rot, fungus, rust, corrosion, woodworm,

moths, insects, vermin or pestsvi) any process involving cleaning, dyeing, staining, repairing, restoring, renovating, fitting, alteration or maintenance of

any propertyvii) use of any article contrary to manufacturers instructions

c) loss, destruction or damage caused by or resulting fromi) any exclusions to perils 1 to 15 aboveii) any perils excluded or deleted from 1 to 15 above

d) loss, destruction or damage to fences and gates.

Additional coverThe cover under this section is extended to include the following

1 Architects’ and surveyors’ fees and other costsWithin the overall limit of the sum insured on buildings, we will pay the cost of architects’, surveyors’, consulting engineers’ legaland other fees necessarily and reasonably incurred in the reinstatement or repair of the buildings following loss, destruction ordamage caused by any peril hereby insured against but excluding fees charged for the preparation of any claim.

2 Debris removal costsThe costs and expenses necessarily incurred by you with our consent ini) removing debrisii) dismantling or demolishingiii) shoring up or proppingof the portion or portions of the buildings destroyed or damaged by any peril hereby insured against.

Provided that we will not be liable under this clause for any such costs or expensesa) incurred in removing debris except from the site of such buildings so destroyed or damaged and from the area immediately

adjacent to such siteb) arising from pollution or contamination of property not insured by this section

3 Public authorities costsWithin the overall limit of the sum insured on buildings and following loss, destruction or damage caused by any peril herebyinsured against, we will pay the additional cost of reinstatement necessarily and reasonably incurred to comply with statutorybuilding regulations or municipal or local bye-laws in respect of any destroyed or damaged part of the buildings provided thatnotice under such building regulation or bye-law had not been served on you before such destruction or damage had occurred.

4 Sanitary ware and underground pipes and cablesThe cost of reinstatement or repair following accidental damage toa) fixed sanitary ware and fittingsb) underground water or gas pipes or electricity or telephone cables extending from the public mains to the buildings

Provided that you are responsible as owner for such reinstatement or repair.

Limit of liabilityOur liability in respect of any one occurrence will not exceed the sum insured by this section.

Sum InsuredAs shown in the schedule, subject to General Condition 17 – Underinsurance.

Inflation protectionThe sum insured on buildings is index linked and will be adjusted each month in line with the percentage change in the GeneralBuilding Cost Index published by the Building Cost Information Service of the Royal Institution of Chartered Surveyors or suitablealternative index selected by us.

Provided that any adjustment made to the sum insured will be based on the latest figures available to us and at each renewal thepremium will be calculated on the adjusted sum insured then in force.

Protection after lossSubject to the provisions of the above Inflation protection clause the sum insured in respect of any buildings insured hereby whichsustain loss, destruction or damage by any peril insured hereby, will continue to be index linked following such loss, destruction ordamage while the property is being reinstated, provided that you take all reasonable steps to ensure that the reinstatement is carriedout without undue delay.

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Basis of claims settlementFollowing loss, destruction or damage insured by this section and subject to the adequacy of the sum insured and the limit of liabilitywe will pay the cost of repairing or reinstating the buildings equal to their condition when new provided that

a) this is carried out without delay and in the most economical mannerb) when buildings are partially destroyed or damaged our liability shall not exceed the estimated reinstatement cost which

would have been payable had they been wholly destroyedc) until reinstatement has been carried out no payment shall be made beyond the amount which would be payable if an

allowance were made for wear, tear or depreciationd) for the purpose of this sub-paragraph General Condition 17 - Underinsurance shall be deemed to read -

whenever a sum insured is declared to be subject to this underinsurance condition, if at the time of repair orreinstatement the amount representing the cost which would have been incurred in repair or reinstatement if the wholeof the buildings had been destroyed exceeds the sum insured on buildings at the time of the loss, destruction ordamage, then you shall be considered as being your own insurer for the difference and shall bear a rateable proportionof the loss

e) where for any reason no payment is to be made on the basis of repair or reinstatement as new (liability being otherwiseadmitted) then our liability will be arrived at as if this basis of claims settlement had not been incorporated herein and thebasis of claims settlement shall then be deemed to read -

following loss, destruction or damage insured by this section and subject to the adequacy of the sum insured and thelimit of liability we will pay the value of the buildings at the time of the loss, destruction or damage, or the amount ofsuch loss, destruction or damage as the case may be, after due allowance for wear, tear or depreciation or at its optionreplace, reinstate or repair the lost, destroyed or damaged property.

Special exclusions (See also the General Exclusions on pages 49 and 50)We will not be liable under this section for1 the first £250 of each claim in respect of accidental damage to sanitary ware, underground pipes and cables2 the first £100 of any other claim after the application of the underinsurance condition3 breakage of or damage to glass or lettering or designs superimposed thereon. (see Section 15)

Special condition (See also the General Conditions on pages 47 and 48)It is a condition precedent to our liability under this section that, in the event of the buildings or portions thereof becoming unoccupiedby any authorised person, you must:(a) advise us as soon as practicable(b) comply with any additional security measures or other protections we request(c) implement the following measures no later than 15 days after the buildings or portion thereof become unoccupied and maintain

such measures throughout the period that the buildings or portion thereof are unoccupied by any authorised person (unlessotherwise agreed by us in writing)

i) all electricity, gas and water services to be turned off at the mains and all water systems drained down, except that youmust preserve the services for any intruder alarm or fire alarm or automatic sprinkler system and ensure that thesecontinue in full and effective operation at all times

ii) all fuel or storage tanks to be drained down or emptied and their contents removed from the buildingsiii) the site to be kept clear of waste materials, gas bottles and redundant contentsiv) all security devices to be in full and effective operationv) an authorised, responsible person to inspect the premises internally and externally at least once a week and report to

us immediately any deterioration in the condition of the buildings or any breach of i) – iv) above(d) advise us immediately of any illegal entry to or damage to the buildings or premises, whether you intend to make a claim or not(e) pay a suitable additional premium from the date of the change, if required(f) advise us as soon as the buildings or portion thereof are to be occupied again.

Additional clauses

(a) Capital additionsNewly erected buildings, new extensions and alterations to existing buildings are held covered before their inclusion in theschedule, for an amount not exceeding 10% of the sum insured on buildings but this shall not include appreciation in value.

Youmust notify us of such capital additions as soon as possible and pay the appropriate additional premium that may be requiredto provide retrospective cover from the commencement date of your liability for such property. Following such notification theprovisions of this clause are fully reinstated.

(b) Contracting purchaserIf at the time of loss, destruction or damage to the buildings you shall have contracted to sell your interest in such buildings andthe purchase shall not have been but shall be thereafter completed, the purchaser on the completion of the purchase if and so faras the buildings are not otherwise insured by or on behalf of the purchaser against such loss, destruction or damage shall beentitled to the benefit of this policy so far as it relates to such loss, destruction or damage without prejudice to the rights andliabilities of you or us under this policy up to the date of completion.

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(c) DesignationFor the purpose of determining where necessary the item against which any property is insuredwe agree to accept the designationunder which such property has been entered in your books.

(d) Non- invalidationThe insurance by this section, other than loss, destruction or damage by theft or any attempt thereat, shall not be invalidated byany act or omission or by any alteration whereby the risk of loss, destruction or damage is increased, unknown to you or beyondyour control, providing that you, immediately you become aware thereof, shall give notice to us and pay an additional premium ifrequired.

(e) Other interestsThe interest in the insurance by this section of the various mortgagees, lessors and freeholders of the property (as advised toMorton Michel) is hereby noted.

(f) WorkmenWorkmen are allowed in all or any of the buildings for the purpose of effecting minor alterations, repairs, decorations andmaintenance without prejudice to this insurance.

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Section 19 – Terrorism

This section is applicable only if a Sum Insured is shown for Section 19 in the schedule

Terrorism – Property DamageThis sub-section applies to the property insured as described, defined and specified as insured in the General Cover provided by thispolicy, save only that any insurance in respect of loss of rent or cost of alternative accommodation shall be deemed to be insured by theTerrorism – Consequential Loss sub-section of this section.

Terrorism – Consequential LossThis sub-section applies to loss of gross profit, gross revenue, income or rent, cost of alternative accommodation or increase in cost ofworking or other such items of loss (other than Book Debts) resulting from interruption or interference as described, defined andspecified as insured in the General Cover provided by this policy.

Provided that at the time of the happening of the loss, destruction or damage that causes the interruption or interference there shallbe in force an insurance provided by us covering your interest in the property that suffers such loss, destruction or damage and thatpayment shall have been made or liability admitted therefor under such insurance or that payment would have been made or liabilitywould have been admitted therefor but for the operation of a proviso in such insurance excluding liability for losses below a specifiedamount.

Terrorism – Book DebtsThis sub-section applies to outstanding debit balances, defined and specified as insured in the General Cover provided by this policy.

CoverWe will indemnify you in the event of loss, destruction or damage to the property insured, insofar and to the extent that it is insuredin Great Britain by the General Cover and in respect of which there is an operative section in the schedule, the cause of which is acts ofpersons acting on behalf of, or in connection with, any organisation which carries out activities directed towards the overthrowing orinfluencing, by force or violence, of Her Majesty’s Government in the United Kingdom or any other government de jure or de facto.

Special exclusionsWe will not be liable under this section in respect of1 loss, destruction or damage or consequential loss directly or indirectly caused by or contributed to by or arising from or occasioned

by or resulting froma) riot, civil commotion, war, invasion, act of foreign enemy, hostilities (whether war be declared or not), civil war, rebellion,

revolution, insurrection or military or usurped powerb) virus or similar mechanism or hacking or denial of service attack in respect of any computer equipment

2 loss, destruction or damage or consequential loss in respect ofa) any nuclear installation or nuclear reactorb) any property not being a block of flats which is insured in the name of a private individual and is occupied by that individual

for residential purposesc) any property which is insured by or would but for the existence of this policy be insured by any form of transit or aviation

or marine policy other than any Goods in Transit section, sub-section or extension of the General Cover provided by thispolicy insofar as it relates to loss, destruction or damage occurring in Great Britain

d) any other type of property which is specifically excluded elsewhere in this policy

Special conditions (See also the General Conditions on pages 47 and 48)1 This section is concurrent and conjunctional with and dependent upon the General Cover provided by this policy.2 This section is not subject to any of the General Exclusions of this policy other than those stated in the Special exclusions of this

section.3 This section is subject to all the other terms, sums insured, limits of liability, definitions, provisions, bases of claims settlement

and conditions which apply to the General Cover provided by this policy (including but without limitation any excess ordeductible to be borne by you) except as expressly varied hereby.

4 In any action, suit or other proceedings where we allege that any loss, destruction, damage or consequential loss is not covered bythis section the burden of proving that such loss, destruction, damage or consequential loss is covered shall be upon you.

5 This section is not subject to General Condition 13 Reinstatement of sum insured, nor to any Inflation protection or to any LongTerm Agreement or Undertaking which may apply to the General Cover provided by this policy.

6 This section is to be lapsed or cancelled simultaneously with any lapse or cancellation of the General Cover provided by this policy.

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Section 20 – Yellowtag

Yellowtag is a unique and innovative loss prevention service that, without revealing your personal details, lets the finder contact youimmediately when your lost keys are found.

Each Yellowtag carries a unique-to-you-and-your-keys ID and a telephone number. This enables all calls to be diverted to yourregistered mobile phone number and emails to you without revealing your identification.

If you lose your Yellowtagged keys, the finder simply calls the telephone number on the tag and the call is instantly and automaticallydiverted to your mobile phone. Additionally, you are automatically sent a SMS text alert and email, with the finders’ contact numberjust in case you missed the call.

Your Yellowtag Keyguard is enclosed with this policy.

IMPORTANT:Requires online registration and activation before use.

How to activate your free Yellowtag keyGuard

– Visit www.yellowtag.com– Click “Registration” and follow instructions– You will receive a login password and further instructions by email– Remember to activate each Yellowtag individuallyShould you need any assistance, please email support@yellowtag.com

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General Conditions

1 Avoidance of policyThis policy shall be voidable in the event of misrepresentation, misdescription or non-disclosure in any material particular.

2 CancellationYou may cancel this policy by giving written instructions to Morton Michel or to us.Wemay cancel this policy or any section by sending a recorded delivery letter to your last known address giving seven days notice.You may cancel the policy within 14 days of issue, returning the policy document and schedule, and receive a full refund ofpremium (but if there has been an incident which has resulted or could result in a claim, you must reimburse us for any amountswe have paid or may be required to pay, in respect of that incident).In the event of cancellation by you or us, we will refund a pro rata proportion of the premium paid in respect of the unexpired termof this policy unless a claim or an incident likely to give rise to a claim has occurred during the current period of insurance.If you are paying by monthly instalments we

– will stop applying for the monthly premium– may exercise our right to collect the balance of any outstanding premium in the event of a claim.

If you have agreed to pay the premiums by instalments and fail to pay any of those instalments, we reserve the right to cancel thepolicy.

3 Change in riskThis policy shall be voidable from the date of the change ifa) your interest ceases other than by death orb) the business be wound up or carried on by a liquidator or receiver or permanently discontinued orc) any alteration be made either in the business or in the premises or in any property therein or in any other circumstances

which may increase the possibility of loss, destruction, damage or accidental bodily injury covered by this policyat any time after the commencement of this insurance unless we have agreed in writing to its continuance.

4 ClaimsOn the happening of any event which could result in a claim under this policy (disregarding any excess) it is a condition precedentto liability that you shalla) advise Morton Michel or us in writing as soon as practicableb) not make any admission of liability or promise of payment without our written consentc) notify the police as soon as reasonably practicable following loss, destruction or damage by theft, riot, vandalism or

malicious act or if property be accidentally lostd) in respect of any loss, destruction or damage to the property insured submit, at your own expense, a claim in writing with all

such particulars and proofs as may be reasonably required withini) seven days (or as soon as reasonably practicable after that date) in the case of loss, destruction or damage caused by

riot, civil commotion, strikes, labour disturbances or malicious personsii) thirty days (or as soon as reasonably practicable after that date) in the case of any other loss, destruction or damage

e) inform us as soon as reasonably practicable of any claim being made, or of any impending prosecution, inquest or fatalaccident inquiry; every letter, claim, writ or other document relating to any accident, claim, prosecution or civil proceedingsmust be sent to us as soon as reasonably practicable, unacknowledged

f) give all such information and assistance as we may request.

5 Contracts (Rights of Third Parties) Act 1999No person, persons, company or other party who is not named as the insured in this policy shall have any right under the Contracts(Rights of Third Parties) Act 1999 to enforce any terms or conditions of this policy. This shall not affect any right or remedy of a thirdparty that exists or is available apart from that Act.

6 Death of the insuredIn the event of your death, we will, in respect of liability or loss incurred by you, indemnify your personal representatives in theterms of and subject to the limitations of this policy, provided that such personal representatives shall as though they were theinsured observe, fulfil and be subject to the terms and conditions of the policy as far as they can apply.

7 FraudIf you or anyone acting for youmakes a claim under this policy knowing the claim to be false or fraudulent in any respect or if anydamage is caused by your wilful act or with your connivance, we will not pay the claim and all cover under the policy will ceasefrom the date of the incident or circumstances in respect of which the fraudulent claim was made.

8 Insurance Premium TaxEffective from 1st October 1994, the premium will be subject to insurance premium tax as set out in the Finance Act 1994 (or asamended by subsequent legislation) and detailed in the policy schedule or renewal notice issued from that date.

9 Law applicableUnder United Kingdom law the parties to the contract have the right to choose the law which should apply. In the absence of anyagreement to the contrary, English law will apply.

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10 Other insuranceIf at the time of any loss, destruction or damage or at the time of the occurrence of any incident which may result in you being heldlegally liable for the consequences thereof and which is covered under this policy, there is any other insurance in force whichcovers the same loss, destruction, damage or legal liability, our liability will be limited to its rateable proportion.

11 Reasonable careIt is a condition precedent to our liability that you shall at your own expensea) take all reasonable precautions to prevent loss, destruction, damage, accident or bodily injuryb) keep the premises, buildings and other maintainable property which is insured by this policy in a satisfactory state of repairc) comply with all relevant statutory requirements and other regulations imposed by any authority and manufacturers’

recommendations all relating to the use inspection and safety of property and the safety of personsd) as soon as possible after discovery, cause any defect or danger to be made good or remedied and in the meantime shall cause

such additional precautions to be effected as the circumstances may requiree) exercise due care in the selection and supervision of employees.

12 RegistrationIt is a condition precedent to liability that the Nursery insured by this policy shall be registered with the appropriate RegisteringAuthority where applicable and all terms of such registration shall be complied with at all times.

13 Reinstatement of sum insuredIt is agreed that in the absence of written notice by you or us to the contrary, our liability shall not stand reduced by the amountof any loss, provided you undertake to pay any appropriate premium for such automatic reinstatement of cover and implementimmediately any recommendations made by us to prevent further loss, destruction or damage and effects all repair or replacementwork without delay.

14 RightsIn the event of loss, destruction or damage to the property insured we will be entitled to enter any building where such loss,destruction or damage has happened and to take and keep possession of such property insured and to deal with the salvage in areasonable manner and this policy shall be proof of leave and licence for such purpose. No property may be abandoned to us.

15 SecurityIt is a condition precedent to our liability that you shall ensure that alla) security devices are put into full and effective operation whenever the premises are closed for business or left unattendedb) keys and all details of any codes or combinations relating to any part of the intruder alarm installation and any safe or

strongroom be removed from the premises whenever the premises are closed for business or left unattendedc) fire break doors and shutters in the buildings be maintained in efficient working order and that the openings protected by

such doors and shutters be kept clear of obstruction at all times and that all such doors and shutters other than those fittedwith fusible links be kept closed except during business hours

d) alterations or additions to or changes in or removal of security devices be advised to us immediately in writing.

16 SubrogationBefore or after we have indemnified you, we will be entitled to undertake in your name and on your behalf the absolute conduct,control and settlement of any proceedings and to take proceedings at our own expense and for our own benefit but in your name,to recover compensation or secure indemnity from any third party in respect of anything covered by this policy.

17 UnderinsuranceWhenever a sum insured is declared to be subject to this underinsurance condition, if the property insured by such item shall atthe commencement of any loss, destruction or damage hereby insured against be collectively of greater value than such suminsured, then you shall be considered as being your own insurer for the difference and shall bear a rateable proportion of the loss.

18 WarrantyEvery warranty shall from the time the warranty attaches apply and continue to be in force during each subsequent period ofinsurance. Non-compliance with any such warranty in so far as it increases the risk of loss, destruction, damage or accidentalbodily injury shall be a bar to any claim for such loss, destruction, damage or accidental bodily injury.

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General Exclusions

We will not be liable for1 loss, destruction or damage to property or any cost or expense, consequential loss or bodily injury directly or indirectly caused by,

contributed to by, resulting from or arising out of or in connection with any of the following regardless of any other cause or eventcontributing concurrently or in any other sequence to the lossa) ionising radiations or contamination by radioactivity from any nuclear fuel or from any nuclear waste from the combustion of

nuclear fuelb) the radioactive, toxic, explosive or other hazardous or contaminating properties of any nuclear installation, reactor or other

nuclear assembly or nuclear component thereofc) any weapon of war employing atomic or nuclear fission and/or fusion or other like reaction or radioactive force or matterd) war, invasion, act of foreign enemy, hostilities (whether war be declared or not), civil war, rebellion, revolution, insurrection

or military or usurped powere) an act of terrorism or any action taken in controlling, preventing, suppressing, retaliating against, responding to or in any way

relating to an act of terrorism (other than in respect of bodily injury to an employee arising out of and in the course ofemployment in the business). Ifwe allege that by reason of this sub-paragraph any loss, destruction, damage, cost, expense,consequential loss or bodily injury is not covered by this policy the burden of proving the contrary shall be upon you

f) pressure waves caused by aircraft or other aerospatial devices travelling at sonic or supersonic speedsg) confiscation, nationalisation or requisition by order of any government or public, municipal, local or customs authorityh) erasure, loss, distortion or corruption of information on, or reduction in the functionality, availability or operation of any

computer system, or any hardware, program, software, data, information repository, disk, microchip, integrated circuit orsimilar device in computer equipment or non-computer equipment, whether the property of the insured or not, caused by themalicious introduction or incursion of any unauthorised, unintended, undesired or unexpected program, instruction orcommand or any other computer or electronic virus.

2 a) loss, destruction or damage to property caused by pollution or contamination except (unless otherwise excluded) loss,destruction or damage to the property insured caused byi) pollution or contamination which itself results from a contingency hereby insured against (other than by leakage of oil

or by accidental damage to underground service pipes or cables) which comprises a sudden identifiable, unintended andunexpected event and occurs in its entirety at a specific time and place during the period of insurance

ii) any contingency hereby insured against (other than by leakage of oil or by accidental damage to underground servicepipes or cables) which itself results from pollution or contamination

b) loss under the Business Interruption section of this policy resulting from pollution or contamination but this will not excludeloss resulting from damage at the premises to property used by you for the purpose of the business (unless otherwiseexcluded) caused byi) pollution or contamination at the premises which itself results from a contingency hereby insured against (other than by

leakage of oil or by accidental damage to underground service pipes or cables) which comprises a sudden, identifiable,unintended and unexpected event and occurs in its entirety at a specific time and place during the period of insurance

ii) any contingency hereby insured against (other than by leakage of oil or by accidental damage to underground servicepipes or cables) which itself results from pollution or contamination

c) loss under the Public Liability and Products Liability sections of this policy resulting from legal liability directly or indirectlycaused by or arising from pollution or contamination unless caused by a sudden, identifiable, unintended and unexpectedevent which occurs in its entirety at a specific time and place during the period of insurance provided thati) all pollution or contamination arising out of such event will be deemed to be one occurrence irrespective of the length

of time or number of periods of insurance over which such pollution or contamination occursii) our liability for all damages payable arising out of all pollution or contamination which is deemed to have occurred

during any one period of insurance will not exceed the amount stated against the Public Liability section and theProducts Liability section in the schedule

Definition and interpretation - for the purposes of General Exclusion 2 c) onlypollution or contamination includes(a) all pollution or contamination of buildings or other structures or of water or land or the atmosphere and(b) all loss or damage or injury directly or indirectly caused by such pollution or contamination.

3 loss, destruction or damagea) to property undergoing any process involving the application of heatb) to any electrical machine or apparatus or component thereof occasioned by its over-running, excessive pressure, short-

circuiting or self-heating not resulting in firec) arising from theft or attempted theft where you or any of your directors, partners or employees or any member of your family

or household be concerned as principal or accessoryd) due to theft or attempted theft, malicious damage, leakage of water following bursting or overflowing of water pipes, water

apparatus or water tanks or from any automatic sprinkler installation, leakage of oil or breakage of glass and sanitary warei) during any period when the business has ceased to trade whether the premises are unfurnished or otherwiseii) whilst the buildings are unfurnished or untenanted

e) due to disappearance, unexplained loss, inventory shortage, misfiling or misplacing of information

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4 loss, destruction or damage or any expense or consequential loss happening in Northern Ireland occasioned by or happeningthrough or in consequence directly or indirectly of riot, civil commotion and (except in respect of loss, destruction or damage orany expense or consequential loss by fire or explosion) strikers, locked out workers or persons taking part in labour disturbancesor malicious persons.

5 a) loss, destruction or damageb) consequential loss, additional expenditure or extra expensesc) legal liabilityd) other fees, costs, disbursements, awards or other expenses of whatsoever nature

directly or indirectly caused by or consisting of or contributed to by or arising from the failure in whole or in part of –i) any computerii) any data processing equipment or media, microchip, integrated circuit or similar deviceiii) any computer softwarewhether your property or not and whether occurring before, during or after the year 2000 to achieve all or any of the purposesand effects intended by the use of any number and/or word to denote a date, including the failure to -(a) correctly recognise any date as its true calendar date(b) recognise, capture, save, retain or restore and/or correctly manipulate, interpret, calculate or process any data or

information or command or instruction as a result of treating any date otherwise than its true calendar date(c) recognise, capture, save, retain, restore and/or correctly manipulate, interpret, calculate or process any data or

information as the result of the operation of any command which has been programmed into any computer software orhardware being a command which causes the loss of data or the inability to recognise, capture, save, retain, restoreand/or correctly manipulate, interpret, calculate or process any data on or after any date

but in respect of all sections other than Employers’ Liability, Public Liability or Products Liability this shall not exclude subsequentloss, destruction or damage to property specifically insured by any item, section or endorsement of this policy, or any expense orany consequential loss additional expenditure or extra expense (not otherwise excluded) which itself results from the followingcontingencies or perils -

Fire, lightning, explosion, aircraft and other aerospatial devices or articles dropped therefrom, riot, civil commotion, strikers,locked-out workers, persons taking part in labour disturbances, malicious persons, earthquake, subterranean fire, impact byany mechanically propelled vehicle or by goods falling therefrom or by animals, theft or any attempt thereat, storm, flood, orescape of water or oil from any pipe tank or apparatus.

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Definitions

The words and expressions defined below will carry the same meaning throughout the policy, wherever they appear in bold.

adventure playground Aerial runways, scrambling nets, tree walks and other structures constructed (or partly constructed) fromequipment materials not originally intended for play or recreational use (eg telegraph poles, tyres, drainage pipes, etc)

unless advised to and agreed in writing by Morton Michel.

accidental damage damage caused by accidental and external means

act of terrorism an activity thata) involves a violent act or the unlawful use of force or an unlawful act dangerous to human life, tangible

or intangible property or infrastructure, or a threat thereof; andb) appears to be intended toi) intimidate or coerce a civilian population, orii) disrupt any segment of the economy of a government de jure or de facto, state or country, oriii) overthrow, influence, or affect the conduct or policy of any government de jure or de facto by

intimidation or coercion, oriv) affect the conduct of a government de jure or de facto by mass destruction, assassination,

kidnapping or hostage taking

annual gross the gross revenue during the twelve months immediately before the date of the damage subject torevenue appropriate trend adjustments

annual gross the proportional equivalent for a period of twelve months, of the gross revenue realised during therevenue period between the commencement of the business and the date of the damage subject to appropriate(new business) trend adjustments

asbestos asbestos, asbestos fibres, any derivatives of asbestos and any product containing asbestos, asbestosfibres or any derivatives of asbestos

aspect enquiry an examination by HM revenue and Customs which considers one or more specific aspects of your selfassessment and/or corporation tax return

bodily injury death, injury, illness, disease or shock

bouncy castle play equipment with a horizontal, inflatable base and inflatable sides designed and intended solely forchildren to bounce in or on and for no other recreational activity

buildings the building or buildings of the premises (or the building or buildings of the structure of which thepremises form part), including:foundations;walls, gates and fences;landlord’s fixtures and fittings;air-conditioning, central heating and alarm systems;piping, ducting, cabling, control gear and underground services;yards, car parks, driveways, pavements, paths, steps and roadways;extensions, annexes, gangways, conveniences, outbuildings and sub-stations;fuel tanks and wind turbines;telephone, gas, water and electric meters, fibre optics or integrated services and digital network lines;all at the risk address stated in the schedule and for which you are legally responsible

business a) the provision of organised and supervised children’s day nursery activities as advised to and agreedin writing by Morton Michel (including organised and supervised outings away from the premises forup to three consecutive days)

b) the provision and management of catering, social, sports, educational and welfare facilities for thebenefit of employees, first aid, medical, ambulance, fire and security services and maintenance of thepremises

c) ownership and maintenance of buildings, premises and land used in connection therewithd) participation as an exhibitor at trade shows and exhibitions

business hours the period during which the premises are occupied by you or any authorised employee for the purposes ofthe business

computer equipment any computer or other equipment or component or system or item which processes, stores, transmits orreceives data or any part thereof whether tangible or intangible (including, but without limitation to, anyinformation or programs or software) and whether your property or not

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computing and ancillary computer equipment (including interconnected wiring fixed disks and telecommunications equipment)equipment used for the storage and communication of electronically processed data and ancillary equipment solely

used with the computer equipment comprising air conditioning equipment, generating equipment, voltageregulating equipment, temperature and humidity recording equipment, electronic access equipment, heatand smoke detection equipment, gas flooding cylinders and pipework, used by you for the purposes of thebusiness, insured under Section 3 – Nursery Contents

Costs and Legal costsexpenses All reasonable and necessary costs chargeable by the representative on a standard basis.

Also the costs incurred by opponents in civil cases if an insured person has been ordered to pay them, orpays them with our agreement.

Accountant’s costsA reasonable amount in respect of all costs reasonably incurred by the representative.

Attendance expensesThe insured person’s salary or wages for the time that the insured person is off work to attend anyarbitration, court or tribunal hearing at the request of the representative or while attending jury service.DAS will pay for each half or whole day that the court, tribunal or the insured person’s employer will notpay for.

The amount DAS will pay is based on the following:(a) the time the insured person is off work including the time it takes to travel to and from the hearing.

This will be calculated to the nearest half day assuming that a whole day is eight hours;(b) if the insured person works full time, the salary or wages for each whole day equals 1/250th of the

insured person’s yearly salary or wages;(c) if the insured personworks part-time, the salary or wages will be a proportion of the insured person’s

weekly salary or wages.

damage physical loss, destruction or damage by any of the perils insured under Section 3 of this policy

date of occurrence (a) for civil cases (other than under insured incident - 6 Tax Protection), the date of occurrence is whenthe cause of action first accrued.

(b) for criminal cases, the date of occurrence is when the insured person commenced or is alleged tohave commenced to violate the criminal law in question

(c) for full enquiries or aspect enquiries, the date of occurrence is when HM Revenue and Customs firstnotifies in writing the intention to make enquiries.

(d) for tax intervention enquiries, the date of occurrence is when HM Revenue and Customs first contactsyou in relation to commencing an intervention enquiry into your business accounts.

(e) for Employers’ Compliance and Value Added Tax disputes, the date of occurrence is when the relevantauthority sends an assessment or written decision to you

(f) for licence or registration appeals, the date of occurrence is when you first became aware of theproposal by the relevant licensing or regulatory authority to suspend, alter the terms of, refuse torenew or cancel your licence, mandatory registration or British Standard Certificate of Registration

denial of service attack any actions or instructions constructed or generated with the ability to damage, interfere with or otherwiseaffect the availability of networks, network services, network connectivity or information systemsincluding, but without limitation to, the generation of excess traffic into network addresses, theexploitation of system or network weaknesses and the generation of excess or non-genuine traffic betweenand amongst networks

employee any

person under a contract of service or apprenticeship to you

labour master or labour only sub-contractor or person supplied by them

self-employed person or delegated voluntary helper performing work of a kind ordinarily performed undera contract of service or apprenticeship to you, provided that such work is under your authority and control

person who is engaged under a Government or otherwise authorised work experience, training, study,exchange or similar scheme

whilst working for you in connection with the business

excess the amount for which you will be responsible and which will be deducted from each and every claim

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full enquiry an extensive examination by HM Revenue and Customs which considers all aspects of your tax affairs,excluding those enquiries which are limited to one or more specific aspects of your self assessment and/orcorporation tax return

General Cover any insurance by this policy in respect of property and/or consequential loss in Great Britain

Great Britain England and Wales and Scotland but not the territorial seas adjacent thereto as defined by the TerritorialSea Act 1987 nor the Isle of Man nor the Channel Islands

gross revenue the money paid or payable to you for work done and services rendered in the course of the business atthe premises

hacking unauthorised access to any computer equipment

indemnity period the period beginning with the occurrence of the damage and ending when your business ceases to beaffected by the damage, but not longer than the maximum indemnity period

insured incident as specified under “Cover” in Section 5 Legal Expenses

insured person you and the directors, proprietors or employees of the Nursery

intruder alarm the component parts of the alarm including the means of communication used to transmit signalsinstallation

loss of limb total loss of one or more limbs at or above the wrist or ankle or total and permanent loss of use of any entirelimb

loss of sight total and irrecoverable loss of sight in one or both eyes

maximum twelve months or such other period as shown in the scheduleindemnityperiod

medical expenses the cost of medical, surgical or other remedial attention, treatment or appliances given or prescribed by aqualified medical or dental practitioner and all hospital, nursing home and ambulance charges necessarilyincurred in the treatment of a Nursery official aged between 16 to 70 years in connection with Results 1 to5 of Section 7 Personal Accident for Nursery Officials

money current currency, crossed and uncrossed bankers drafts, national giro drafts and payment orders, postaland money orders, dividend warrants and cheques other than pre-signed blank cheques, travellerscheques, national savings stamps and certificates, bus and rail travel cards and passes, telephone cards,current postage stamps and unused postal franking machine units, luncheon vouchers, gift tokens, tradingstamps, national insurance stamps and stamped or impressed national insurance cards, holiday with paystamps, premium bonds, VAT purchase invoices, credit card, cheque card and debit card sales vouchers,savings stamps, consumer redemption vouchers and National Lottery ‘Instants’ and other scratch cards, allpertaining to the business and belonging to you or for which you are legally responsible

motor vehicle mechanically propelled vehicle or plant (or trailer attached thereto) in respect of which insurance orsecurity is necessary to meet the requirements of road traffic legislation

non-negotiable money crossed cheques, postal orders, money orders, bankers drafts, national giro drafts and payment orders,dividend warrants, national savings certificates, unused postal franking machine units, stamped orimpressed national insurance cards, holiday with pay stamps, premium bonds, VAT purchase invoices,credit card cheque card and debit card sales vouchers and consumer redemption vouchers, all pertainingto the business and belonging to you or for which you are legally responsible

nuclear installation any installation of such class and description as may be prescribed by regulations made by the relevantSecretary of State from time to time by statutory instrument, being an installation designed or adapted for:a) the production or use of atomic energy, orb) the carrying out of any process which is preparatory or ancillary to the production or use of atomic

energy and which involves or is capable of causing the emission of ionising radiations, orc) the storage, processing or disposal of nuclear fuel or of bulk quantities of other radioactive matter,

being matter which has been produced or irradiated in the course of the production or use of nuclearfuel

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nuclear reactor any part (including any machinery, equipment or appliance, whether affixed to land or not) designed oradapted for the production of atomic energy by a fission process in which a controlled chain reaction canbe maintained without an additional source of neutrons

Nursery any group of children assembled for the provision of organised and supervised activities by you asprescribed or required by the local authority governed by, and registered in accordance with, the ChildcareAct 2006 where applicable

Nursery contents your property or property for which you are responsible, used solely in connection with the business butexcluding property more specifically insured, motor vehicles and accessories whilst therein or thereon,money, personal effects, tenant’s improvements, alterations and decorations, landlord’s fixtures andfittings, glass and buildings

Nursery official the director, the proprietor or any employee of the Nursery

Nursery officials’ coin, bank and currency notes, cheques, postage stamps, postal and money orders belonging to anypersonal money Nursery official and held solely for private purposes

operative time anytime whilst engaged in organised and supervised Nursery activities

operative section any section against which a sum insured has been inserted in the schedule

outstanding the individual amounts owed to you by your customers and shown as outstanding in your records, afterdebit balances adjustment for bad debts, abnormal trading conditions and debit/credit amounts not passed through your

books during the period between the last record and the date of the damage

parent person with legally recognised parental or guardian responsibility

period of insurance the period stated in the schedule

permanent total injury not resulting in death or loss of limbs or eyes which results in permanent inability to engage in anydisablement gainful employment

personal effects personal effects, clothing, tools and pedal cycles not otherwise insured belonging to you or any of yourdirectors, partners, employees, customers or visitors

pollution and pollution, contamination, sooting, deposition, impairment with dust, chemical precipitation, poisoning,contamination epidemic and disease (including but not limited to foot and mouth disease), adulteration, impurification or

limitation or prevention of the use of objects because of hazards to health

premises that part of the buildings, situate at the risk address or locations stated in the schedule, occupied by youfor the purpose of the business

products any goods, including containers, packaging, labelling and instructions for use, sold, supplied, processed,delivered, installed, tested, repaired, serviced, altered, treated or hired out by you in connection with thebusiness from the premises and no longer in your possession or control

registration certificate the certificate granted for you to carry on the business at the premises

representative the lawyer, accountant or other suitably qualified person, who has been appointed to act for an insuredperson in accordance with the terms of this section.

schedule document stating details of you, the period of insurance, the operative sections of the policy, the sumsinsured and limits which apply, and specifying any warranties or endorsements which amend the standardpolicy wording

standard gross the gross revenue during that period in the twelve months immediately before the date of the damagerevenue which corresponds with the indemnity period, subject to appropriate trend adjustments

standard gross the proportional equivalent, for a period equal to the indemnity period, of the gross revenue realisedrevenue during the period between the commencement of the business and the date of the damage subject to(new business) appropriate trend adjustments

tax an examination by HM Revenue and Customs to measure the level of compliance in your financialintervention enquiry accounting records to highlight areas where errors have or may occur.

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temporary total injury resulting in temporary and absolute inability to engage in or give attention to usual occupationdisablement

tenant’s improvements improvements, alterations and decorations which have been undertaken to the buildings either by you ora previous occupier, and for which you are legally responsible as occupier, and not as owner, of thebuildings

territorial limits Great Britain, Northern Ireland, the Isle of Man or the Channel Islands

trend adjustments necessary to provide for the trend of theadjustments business and for variations in or other circumstances affecting the business before or after the damage

which would have affected the business had the damage not occurred, so that the figures thus adjustedshall represent, as nearly as may be reasonably practicable, the results which but for the damage wouldhave been obtained during the relative period after the damage

unattended vehicle any vehicle left without you, one of your employees or a responsible adult authorised by you remaining inor on such vehicle

vehicle any road vehicle together with its trailer or container

virus or similar program code, programming instruction or any set of instructions intentionally constructed with the abilitymechanism to damage, interfere with or otherwise adversely affect computer programs, data files or operations,

whether involving self-replication or not, including but, without limitation to Trojan horses, worms andlogic bombs

we, us, our for Sections 1 to 4 and 6 to 19 - Sterling Insurance Company Limitedfor Section 5 - DAS Legal Expenses Insurance Company Limited

you, your, yours the limited company, proprietor, or nominated official for the time being of the Nursery named in theschedule

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Endorsements and Warranties

The following endorsements and warranties apply only if they are shown in the schedule or the appendix thereto under the heading‘Endorsements and warranties applicable’.

NCE1 Subsidence

Peril 17 as follows is deemed to be added to the list of perils insured by Section 18 - Buildings.

17 Subsidence or ground heave (of any part of the site on which the buildings stand) or landslip but excludin

a) all such loss, destruction or damage caused by or due toi) settlement or bedding down of new structuresii) compaction of the infill to the floorsiii) the settlement or movement of newly made-up groundiv) river or coastal erosion or cliff-fallv) defective design or workmanship or the use of faulty or defective materialsvi) demolition or structural repairs or alterations to the buildings

b) movement of solid floor slabs unless the foundations beneath the external walls of the buildings are damaged atthe same time by the same cause

c) loss or destruction of or damage to fences, gates, hedges, oil tanks, paths, patios, paved areas or other artificiallycovered surfaces, swimming pools, tennis courts and walls, free-standing walls, unless the main building isdamaged at the same time by the same cause

d) loss or destruction of or damage to loose or moveable property in the open

e) loss, destruction or damage for which compensation is provided by legislation

f) the first £2,500 of each and every loss, after the application of the Underinsurance Condition, or such other amountas stated in the schedule.

In consequence of the addition of Peril 17 above, sub-paragraph c) of Peril 16 to Section 18 is amended to readc) loss, destruction or damage caused by or resulting from

i) any exclusions to perils 1 to 15 and 17 aboveii) any perils excluded or deleted from 1 to 15 or 17 above.

NCE2 Contract variations

Variations in the contract during the first period of insurance are entered in our records and the first premium has beencalculated accordingly.

NCE3 Money in safe

Item 2 c) of Section 9 - Nursery Money of this policy is restated as follows:-

Item Limit2 money, other than non negotiable money, whilst

c) on the premises outside business hours as statedcontained in the locked safe(s) specified in thein the schedule schedule

NCE4 Fidelity Guarantee

Definitions and interpretationsFor the purposes of this section only

any one claim means all acts of fraud or dishonesty during the period of insurance committed by any one employee or morethan one employee acting in collusion

amount of guarantee means the our total liability for any one claim in respect of the employees as described in the FidelityGuarantee section of the schedule

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aggregate limit of guarantee means our total liability for all claims in respect of all employees described in the FidelityGuarantee section of the schedule

CoverWe will indemnify you in respect of direct pecuniary loss sustained by you caused by any act of fraud or dishonesty which is1 committed within the territorial limits by any employee described in the Fidelity Guarantee section of the schedule

during the period of insurance and during the uninterrupted service of such employee with you and2 discovered

a) during the period of insurance by this section, or within 2 months of its expiry, orb) within 12 months of the cessation for any reason of the employment with you of such employee whichever occurs

first

Additional CoverThe cover under this section is extended to include

Auditors feesWe will indemnify you within the amount of guarantee for auditor ’s fees incurred with our written consent solely tosubstantiate a claim under this section

Limit of liabilityOur liability shall not exceed in respect ofi) any one claim the amount of guarantee of £25,000ii) all claims the aggregate limit of guarantee of £25,000

irrespective of the number of periods of insurance this section or any substituted or substitute section or policy remainsin force

Special exclusionsWe will not be liable under this section for

1 any loss dependant solely upon an inventory compilation or a profit and loss compilation and unexplained shortages2 loss which does not arise from the fraudulent or dishonest act of any employee which is intended to result in improper

financial gain by any employee or any other person3 loss of interest4 the first £500 of each and every loss5 any amount for which an indemnity is granted by the Money section of this policy6 losses not directly associated with the incident that caused you to claim.

Special conditions1 General exception 3c) shall not apply to the insurance by this section.2 Notice shall be given to us of any alteration in

a) the nature of your businessb) the duties and conditions of service of any employee insured by this sectionc) the system of check declared to us.

3 Immediately following the discovery of any act of fraud or dishonesty on the part of any employee the indemnity by thissection shall be at an end so far as regards any further act of fraud or dishonesty committed by that employee.

4 Anymoney of the employee held by you or anymoney or assets which but for the act of fraud or dishonesty would havebeen due to the employee from you shall be deducted from the amount of any claim payable under this section as aresult of that act of fraud or dishonesty.

5 You shall give all such information and assistance as we may require to enable us to seek recovery from any employeewhose act of fraud or dishonesty has given rise to a claim under this section. Any such recovery shall be shared by usand you in such proportion as the amount paid by us and the amount of the loss borne by you shall bear to the totalamount of the loss caused by the act of that employee.

6 Notwithstanding General Condition 13 of this policy any sum or sums payable by us under this section in any one periodof insurance shall reduce the Limit of indemnity in respect of the aggregate limit of guarantee so that the total of any orall of such sums shall not exceed such Limit of liability. In the event of such Limit of liability being reduced by reason ofthis Special condition such Limit may be reinstated upon payment by you of an appropriate additional premium providedthat the amount by which such Limit is reinstated shall be available solely in respect of acts of fraud or dishonestycommitted after such reinstatement.

NCW1 Alarm warranty

Warranted that1 the intruder alarm installation approved by us must be

a) set in its entirety whenever the premises are closed for business or left unattendedb) kept in full working order and maintained during the currency of the policy under a maintenance contract with the

installing company or other engineers approved by us and that the maintenance company must be advisedimmediately of any defect in the intruder alarm installation

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2 you shalla) provide a copy of the specification if so requested by usb) notify us

i) immediately any warning is received from the police that they may withdraw their response to callsii) before any alteration is made to the intruder alarm installation.

NCW2 Nursery contents warranty

Warranted that all portable Nursery contents be contained within that part of the premises protected by the intruder alarminstallation.

Arranged by

www.mortonmichel.com KH2710 06.09

Tel: 0845 2570900 Fax: 0845 2570547/0548 www.mortonmichel.com

Morton Michel Alhambra House 9 St Michaels Road Croydon CR9 3DD

www.mortonmichel.com