Commercial Business Package Insurance Policy

Commercial Business Package Insurance Policy
Lumley Insurance Commercial Business Package > Policy Wording

Commercial Business Package
Insurance Policy
Lumley Insurance Commercial Business Package > Policy Wording                                                                                                                Lumley Insurance Commercial Business Package > Policy Wording > Table of Contents

Commercial Business Package                                                                                                  Commercial Business Package                                                                                          3
Policy Wording and Product Disclosure Statement                                                                              IMPORTANT INFORMATION                                       6          THEFT COVER SECTION                                    35
The insurer of this Commercial Business Package insurance is                                                                 1. Entering the Policy with Us                              6          Cover                                                  35
WFI Insurance Limited ABN 24 000 036 279 AFS Licence No.                                                                     2. Cost of the Insurance                                    6          Basis of settlement                                    35
241461, trading as Lumley Insurance.                                                                                         3. Duty of disclosure                                       6          Additional Benefits                                    35
This document contains important information about this                                                                      4. Other party’s interests                                  7          Optional Extension                                     37
insurance and how it works. Before making a decision to take                                                                 5. Cooling Off                                              7          Exclusions                                             37
up this insurance, please read this document carefully.                                                                      6. Code of Practice                                         7
To determine if this insurance is appropriate for You, it is                                                                 7. Complaints                                               7
                                                                                                                                                                                                    MONEY COVER SECTION                                    38
important that You read:                                                                                                     8. Privacy                                                  7
                                                                                                                                                                                                    Definitions                                            38
•   this Introduction and the Important Information - it                                                                     9. Goods and Services Tax (GST)                             9
                                                                                                                                                                                                    Cover                                                  38
    contains information on important matters You need to                                                                    10. Terrorism Insurance Act 2003 (Cth)                      9
                                                                                                                                                                                                    Defined events                                         38
    be aware of before applying for this product;                                                                            11. Intermediaries, General Advice Services provided
                                                                                                                                  by Lumley Insurance or its intermediaries              9          Basis of settlement                                    38
•   the Policy, which explains the features, benefits, terms                                                                                                                                        Additional Benefits                                    38
                                                                                                                             12. Underinsurance                                         10
    conditions and exclusions of this product;                                                                                                                                                      Optional Extensions                                    40
                                                                                                                             13. Financial Claims Scheme                                10
•   any other documents We provide to You about this                                                                         14. Exclusions and Conditions                              10          Conditions                                             40
    product which may change the features, benefits, terms,                                                                                                                                         Exclusions                                             40
                                                                                                                             15. Updating Product Disclosure Statement                  10
    conditions and exclusions described in the Policy.
                                                                                                                             16. Section 40 Insurance Contracts Act 1984(Cth)           10
                                                                                                                             17. Victorian Fire Service Levy                            10          GLASS COVER SECTION                                    42
Preparation Date: 12 May 2014
                                                                                                                                                                                                    Definitions                                            42
                                                                                                                             GENERAL PROVISIONS                                         11          Cover                                                  42
                                                                                                                             General definitions                                        11          Basis of settlement                                    42
                                                                                                                             General exclusions                                         12          Additional Benefits                                    42
                                                                                                                             General conditions                                         14          Exclusions                                             43

                                                                                                                             FIRE AND PERILS COVER SECTION                              18          BROADFORM LIABILITY COVER SECTION                      44
                                                                                                                             Definitions                                                18          Definitions                                            44
                                                                                                                             Cover                                                      19          Cover                                                  46
                                                                                                                             Basis of settlement                                        19          Limits of liability and excess                         47
                                                                                                                             Defined events cover                                       20          Additional Benefit                                     47
    NEW SOUTH WALES                                      VICTORIA                             WESTERN AUSTRALIA              Accidental damage cover                                    20          Optional Extensions                                    48
    Lumley House                                         Level 3, 99 King Street              Level 7, 5 Mill Street                                                                                Exclusions                                             49
                                                                                                                             Additional Benefits                                        21
    Level 9, 309 Kent Street                             Melbourne VIC 3000                   Perth WA 6000                                                                                         Conditions                                             52
    Sydney NSW 2000                                      Phone: (03) 8627 4333                Phone: (08) 9220 8222          Optional Extensions                                        24
    Phone: (02) 9248 1111                                Fax: (03) 8627 4312                  Fax: (08) 9220 8251            Exclusions                                                 24
    Fax: (02) 9248 1122                                                                                                      Conditions                                                 25          GENERAL PROPERTY COVER SECTION                         54
                                                         TASMANIA                             QUEENSLAND
    50 Glebe Road                                        76 York Street                       Level 2, 99 Melbourne Street                                                                          Definitions                                            54
    The Junction                                         Launceston TAS 7250                  South Brisbane QLD 4101                                                                               Cover A – Accidental Loss or Damage                    54
                                                                                                                             BUSINESS INTERRUPTION COVER SECTION                        27
    Newcastle NSW 2291                                   Phone: (03) 6345 4700                Phone: (07) 3307 4800                                                                                 Cover B – Fire, Theft, Collision and other
    Phone: (02) 4925 7500                                Fax: (03) 6345 4711                  Fax: (07) 3307 4899            Definitions                                                27
                                                                                                                                                                                                    expressed perils                                       54
    Fax: (02) 4940 0295                                                                                                      Cover                                                      28
                                                         SOUTH AUSTRALIA                      NORTHERN TERRITORY                                                                                    Basis of settlement – Covers A & B                     54
                                                                                                                             Part A – Annual revenue basis                              28
    CANBERRA                                             465 Pulteney Street                  Level 2, Beagle House                                                                                 Cover C– Goods in transit                              54
    Level 4, 10 Rudd Street                              Adelaide SA 5000                     38 Mitchell Street             Part B – Weekly revenue basis                              28
                                                                                                                                                                                                    Basis of settlement – Cover C                          54
    Canberra City ACT 2600                               Phone: (08) 8228 1700                Darwin NT 0800                 Part C – Insurable gross profit basis                      29
                                                                                                                                                                                                    Exclusions – Cover C                                   54
    Phone: (02) 6279 0333                                Fax: (08) 8228 1777                  Phone: (08) 8946 4600          Common clauses to parts A, B and C                         30
    Fax: (02) 6279 0330                                                                       Fax: (08) 8946 4666                                                                                   Exclusions – Covers A, B & C                           55
                                                                                                                             Additional Benefits                                        32
                                                                                                                             Optional Extension                                         33
                                                                                                                             Conditions                                                 34
Lumley Insurance is a trading name of WFI Insurance Limited ABN 24 000 036 279 AFSL 241461.
The ‘Greater Than’ symbol is a registered trademark of Lumley Insurance.
Lumley Insurance Commercial Business Package > Policy Wording > Table of Contents                                                                                             Lumley Insurance Commercial Business Package > Policy Wording > Table of Contents

Commercial Business Package                                                                                                     Commercial Business Package                                                                                        5
Important information                                  56          Premium                                                85    Definitions                                             114
Definitions                                            56          Excess                                                 85    Section 1 – Material damage                             115
Part 1    – Machinery Cover                            56                                                                       Section 2 – Road risk liability                         118
          – Basis of settlement                        56                                                                       General extensions                                      120
                                                                   MOTORPACK® SIGNIFICANT FEATURES AND BENEFITS           86
          – Exclusions                                 57                                                                       General exclusions                                      121
                                                                   Part A – Commercial Motor                              86
          – Optional Extensions                        58                                                                       Specific exclusions applicable to section 1             122
                                                                   Part B – Heavy Motor                                   88
Part 2    – Electronic Cover                           58                                                                       Specific exclusions applicable to section 2             123
                                                                   Part C – Mobile Plant & Equipment                      90
          – Basis of settlement                        59                                                                       General conditions                                      125
          – Exclusions                                 59
          – Conditions                                 59          PART A - COMMERCIAL MOTOR                               94
          – Optional Extensions                        59          Definitions                                             94
Exclusions                                             60          Section 1 – Cover for Your vehicle                      94
Conditions                                             62          Specific exclusions - Applicable to Section 1           98
                                                                   Section 2 – Cover for Damage to Third Party Property    98
                                                                   Specific exclusions - Applicable to Section 2           99
                                                                   General extensions applicable to all sections           99
Definitions                                            63
                                                                   General exclusions applicable to all sections          100
Cover                                                  63
                                                                   General conditions applicable to all sections          101
Basis of settlement                                    64
Additional Benefits                                    64
Exclusions                                             64          PART B - HEAVY MOTOR                                   103
Conditions                                             64          Definitions                                            103
                                                                   Section 1 – Cover for Your vehicle                     104
                                                                   Specific exclusions - Applicable to Section 1          107
TRANSIT COVER SECTION                                  66
                                                                   Section 2 – Liabilities to third parties               107
Definitions                                            66
                                                                   Specific exclusions - Applicable to Section 2          109
Cover                                                  66
                                                                   General extensions - Applicable to all sections        110
Basis of settlement                                    66
                                                                   General exclusions - Applicable to all sections        110
Additional Benefits                                    66
                                                                   General conditions - Applicable to all sections        111
Exclusions                                             66
Conditions                                             67

About this Policy Section                              68
General Provisions                                     68
General Extensions                                     71
Coverage Part 1 – Directors & Officers Liability       77
Coverage Part 2 – Employment Practices Liability       80
Coverage Part 3 – Statutory Liability                  81
Coverage Part 4 – Company Liability                    81
Lumley Insurance Commercial Business Package > Policy Wording > Important Information                                                                                            Lumley Insurance Commercial Business Package > Policy Wording > Important Information

                                                                                                                                     Information                                                                                                              7
    1. ENTERING INTO THE POLICY WITH US                             2. COST OF THE INSURANCE                                         You have a duty, under the Insurance Contracts Act 1984, to            7. COMPLAINTS
Where We have agreed to insure You, We confirm this by              In order to calculate Your Premium, We take various factors      disclose to Us every matter that You know, or could reasonably        If You have a complaint, You may contact Us and request that
issuing You with a Policy Schedule which provides details           into consideration, including the level of cover requested and   be expected to know, is relevant to our decision whether to           We review the matter. If You are dissatisfied with our decision,
relevant to You, such as Sums Insured, Limits of Liability,         the property to be insured.                                      accept the risk of the insurance and, if so, on what terms.           You may request it be reviewed by Our Internal Dispute
Premium and Excesses.                                               Factors that increase the risk to Us generally increase the      Your duty however does not require disclosure of a matter:            Resolution (IDR) Committee.
The Policy, which is Your contract with Us, is entered into on      Premium (eg. high claims experience or higher Sum Insured)       •     that diminishes the risk to be undertaken by Us;                If You are unhappy with Our decision You may refer Your
the basis of the information provided by You in the                 and factors that reduce the risk to Us generally reduce the      •     that is of common knowledge;                                    dispute to the Financial Ombudsman Service (FOS). The FOS
application process. Please ensure You have complied with           premium (eg. low claims experience or lower Sums Insured).                                                                             is a free and independent external dispute resolution scheme
Your Duty of Disclosure as this can affect Your ability to claim.                                                                    •     that We know or, in the ordinary course of our business,        for consumers approved by the Australian Securities and
                                                                    Your Premium also includes amounts that take into account              ought to know;
The Policy is entered into on the condition that You will pay       Our actual or estimated obligation to pay any relevant                                                                                 Investment Commission for disputes. The scheme applies to
the Premium required by Us by the agreed time (including            compulsory government charges, taxes or levies (for example      •     where compliance with Your duty is waived by Us.                matters that are covered by the FOS’ Terms of Reference. We
any adjustments).                                                   Stamp Duty, GST and Fire Services Levy). Where We are                                                                                  are a member of this scheme and We agree to be bound by
                                                                                                                                     When answering any questions, You must be honest.
                                                                    required to pay an estimated amount (eg. For Fire Services                                                                             the FOS’ determinations on disputes but You are not so
In order to calculate Your Premium, We take various factors                                                                          We will use the information You disclose in deciding whether          bound. If You wish Your dispute to be determined by the FOS,
into consideration, including the level of cover requested and      Levies) based on criteria set by the Government, We allocate
                                                                                                                                     to insure You and anyone else to be insured under the Policy,         You must refer Your dispute to the FOS within 2 years of the
the property to be insured.                                         to the Policy Our estimate of the amount We will be required
                                                                                                                                     and on what terms.                                                    date of Our final IDR response. You may refer the matter to
                                                                    to pay. We may under or over recover in any particular year
Your Premium also includes amounts that take into account           but We will not adjust Your Premium because of this. You can     Consequence of non-disclosure                                         the FOS by contacting them at:
Our actual or estimated obligation to pay any relevant              ask Us for more details if You wish.                                                                                                   Financial Ombudsman Service
                                                                                                                                     If You fail to comply with Your duty of disclosure for a new
compulsory government charges, taxes or levies (for example                                                                                                                                                GPO Box 3
                                                                    When You apply for this insurance, You will be advised of the    Policy, or before You renew, extend, vary or reinstate Your
Stamp Duty, GST and Fire Services Levy)                                                                                                                                                                    Melbourne Victoria 3001
                                                                    total amount payable, when it needs to be paid and how it can    Policy We may be entitled to reduce our liability under the
The Policy is made up of:                                           be paid. This amount will be clearly set out in Your Schedule,   Policy in respect of a claim or may cancel it. If Your non-           Phone: 1300 78 08 08
•     this document;                                                which will be sent to You within 5 days of the issue of this     disclosure is fraudulent, We may also have the option of              Email:
                                                                    product. If You fail to pay, We may reduce any claim payment     avoiding the Policy from its commencement.                            Website:
•     the Policy Schedule;
                                                                    by the amount of Premium owing and/or cancel the Policy.
•     any endorsements to the Policy issued by Us.
                                                                    You may also be required to pay an excess in the event of a          4. OTHER PARTY’S INTERESTS                                         8. PRIVACY
You need to:                                                        claim under this Policy. The amount of any excess will be
                                                                    shown on Your Policy schedule.                                   We only cover persons specified in the Policy as entitled to          We are committed to meeting Our privacy obligations to You
•     read these documents together as they set out all of the                                                                       cover for the relevant interest specified. If You want to cover a     under the Privacy Act 1988 (Cth) (‘the Act’). The Act provides
      terms and conditions of Your cover;                                                                                            person’s interest that is not specified You need to apply to Us       for information to be collected, used, disclosed and held in
•     check them to make sure that the cover given is what You      3. DUTY OF DISCLOSURE                                            for this.                                                             accordance with the Australian Privacy Principles (APPs) from
      want;                                                                                                                                                                                                12 March 2014 and prior to 12 March 2014 in accordance with
                                                                    Your duty of disclosure for a new Policy
•     keep them together in a safe place for future reference                                                                                                                                              the National Privacy Principles (“NPP”).
                                                                    The Insurance Contracts Act 1984 requires that any information       5. COOLING OFF
      along with receipts, and other evidence of ownership and                                                                                                                                             You agree that We may collect, use, disclose and hold Your
                                                                    that We seek must be collected by a specific question.           If You are not completely satisfied with the Policy You may
      value of items You have specified on the proposal form, or                                                                                                                                           personal information as set out below.
      any other application for insurance, and for any other        When answering our questions, You must be honest and You         cancel it by notifying Us in writing within 30 days of cover
                                                                    have a duty under the Insurance Contracts Act 1984 to tell Us    having commenced. You will receive a refund of the amount             Collection
      items of significant value.
                                                                    anything known to You, and which a reasonable person in the      You have paid unless You have made or are entitled to                 We collect information which is reasonably necessary to
If You do not meet Your obligations under the Policy, We may                                                                         make a claim under the Policy. You still have cancellation
                                                                    circumstances, would include in answer to the question. We                                                                             provide Our services for underwriting and administering Your
cancel it and/or reduce Our liability in respect of a claim to                                                                       rights after this Cooling Off period ends, which are set out
                                                                    will use the answers in deciding whether to insure You and                                                                             insurance, claims handling, market and customer satisfaction
the extent permitted by law.                                                                                                         in the General Conditions.
                                                                    anyone else to be insured under the Policy, and on what                                                                                research and to develop and identify products and services
If You need more information about the Policy please contact        terms. It is important that You understand You are answering                                                                           that may interest You. Collection will only take place by lawful
Your insurance adviser or Us.                                       our questions in this way for yourself and anyone else that                                                                            and fair means.
                                                                    You want to be covered by the Policy.                                6. CODE OF PRACTICE
                                                                                                                                                                                                           We collect information regarding You, other people, any risk
                                                                    Your duty of disclosure before You renew, extend, vary or        The Insurance Council of Australia Limited has developed the          to be insured, previous claims or losses, details of previous
                                                                    reinstate Your Policy                                            General Insurance Code of Practice, which is a self regulatory        insurances and insurers, credit status and any matters relevant
                                                                                                                                     code for use by all insurers. The Code aims to raise the              to the insurance to be provided.
                                                                                                                                     standards of practice and service in the insurance industry.
                                                                                                                                                                                                           We collect personal information directly or indirectly by
                                                                                                                                     We are a signatory to the Code. If You require further                telephone, email, facsimile, online, post, external agencies and
                                                                                                                                     information about the General Insurance Code of Practice,             in person from You or another person or persons.
                                                                                                                                     please contact Us.
Lumley Insurance Commercial Business Package > Policy Wording > Important Information                                                                                             Lumley Insurance Commercial Business Package > Policy Wording > Important Information

                                                                                                                                       Information                                                                                                               9
If We collect information pursuant to a law, regulation, or         You. You agree that We may so use Your personal                    make a determination about Your complaint, provided Your             insured which are used 100% for business use should be
court order then We will advise You of the law or the court         information. However, You can opt out of receiving such            complaint is covered by the Act. You have 12 months from the         insured on a GST exclusive basis. Any claim settlements, up to
order applicable.                                                   communications by contacting Us.                                   date You became aware of Your privacy issue to lodge Your            the total of all amounts insured, will be calculated with
If You fail to provide Us with personal information then this       Access and correction                                              complaint with the OAIC. The contact details of the OAIC are:        reference to Your GST status and the GST status of the
insurance may not meet Your needs. If You fail to provide                                                                              Office of the Australian Information Commissioner                    property which is the subject of the claim.
                                                                    You can seek access to Your personal information by
information further to Your duty of disclosure to Us, then          contacting Us. You can require Us to correct the personal          GPO Box 2999                                                         This outline of the effect of the GST on Your Policy is for
there may be no cover or a reduced cover for any claim made         information if it is inaccurate, incomplete or out of date. We     Canberra ACT 2601                                                    general information only. You should not rely on this
and in some cases the policy may also be avoided.                   will respond to any such request within a reasonable time. We      Telephone: 1300 363 992                                              information without first seeking expert advice on the
At the time of collection or as soon as practicable thereafter      will provide You with access within a reasonable time in the       Website:                                             application of the GST to Your particular circumstances.
We will notify You or make sure You are aware of Our identity,      manner requested, unless We are entitled to refuse to provide      Email:
contact details, the purposes for which We collect the              access. If We decline to provide You with access We will           You also have a right in limited circumstances to have Your           10. TERRORISM INSURANCE ACT 2003 (CTH)
information, the consequences of not providing the                  provide You with the reasons for Our refusal and how You           privacy complaint determined by the Financial Ombudsman
information, how You can access and correct the information,        may access Our internal dispute resolution (IDR) process.                                                                               Some sections of this policy exclude cover for losses as a
                                                                                                                                       Service (FOS). The FOS can determine a complaint about privacy       result of Terrorism.
that We will disclose the information overseas and the              If We correct information We will inform You. If We refuse to      where the complaint forms part of a wider dispute between You
countries We will so disclose to.                                   amend information We will provide You with Our reasons for         and Us or when the privacy complaint relates to or arises from       In the event that damage to property occurs and the cause of
Use and disclosure                                                  the refusal and details of how to access Our IDR process.          the collection of a debt. The FOS is an independent dispute          the damage is declared a terrorist incident by the responsible
                                                                                                                                       resolution body approved by the Australian Securities and            Minister, then You may be afforded protection within the
We may disclose Your personal information to companies in           Data quality and security                                                                                                               limits of indemnity of this Policy by virtue of the Terrorism
the Insurance Australia Group (IAG), Our agents, overseas                                                                              Investments Commission. We are bound by FOS’
                                                                    We will take such steps as are reasonable in the circumstances     determinations, provided the dispute falls within the FOS’ Terms     Insurance Act 2003. The operation of this Act may also serve to
service providers, other insurers, mailing houses and               to ensure the personal information We collect is accurate, up                                                                           reduce the settlement of Your loss to a percentage of the
document service providers, financial institutions, insurance                                                                          of Reference, but You are not so bound. You have two years
                                                                    to date, complete and protected from unauthorised access,          from the date of Our letter of decision to make an application to    otherwise recoverable loss. In the event that the settlement is
and claim reference agencies, credit agencies, loss assessor        misuse, modification, interference or loss.                                                                                             reduced then this will be at the direction of the Minister.
and adjusters, financial or investigative service providers,                                                                           the FOS for a determination. You can access the FOS dispute
internal dispute resolution officers and dispute resolution         Privacy policy                                                     resolution service by contacting them at:                            A more detailed explanation of the operation of the Terrorism
providers such as the Financial Ombudsman Service.                  If You would like more details about Our privacy policy, would     The Financial Ombudsman Service                                      Insurance Act 2003 can be obtained at

We use and disclose Your personal information for the               like to seek access to or correct Your personal information, or    GPO Box 3
purposes of providing insurance, administration of Your             opt out of receiving materials We send, please contact Us.         Melbourne Victoria 3001
                                                                                                                                                                                                             11. INTERMEDIARIES, GENERAL ADVICE SERVICES
Policy, claims handling and dispute resolution.                     You can also view a copy of Our privacy policy on Our website      Telephone: 1300 780 808                                               PROVIDED BY LUMLEY INSURANCE OR ITS
                                                                    at                                              Website:                                               INTERMEDIARIES
We may also use or disclose Your personal information for a
secondary purpose and You agree that We may so use it.              Complaints                                                         Email:
                                                                                                                                                                                                            Lumley Insurance is an Australian Financial Services licensee
Indirect collection                                                 If You have a complaint regarding Our management of Your                                                                                (No 241461) and is authorised under its licence to deal in and
                                                                    privacy You may access Our internal dispute resolution (IDR)       9. GOODS AND SERVICES TAX (GST)                                      provide general advice about this insurance.
When You provide information about other individuals You            process by contacting Us. In the first instance You should
must make them aware of the disclosure and the use to                                                                                  All amounts insured by the Policy are in accordance with the         Any advice We or Our representatives provide is general only
                                                                    contact Us requesting a resolution. The person contacted has                                                                            and does not take into account Your personal objectives,
which their personal information will be put.                       one business day to resolve Your complaint and if he or she        advice You have given to Us regarding Your GST status. Any
                                                                                                                                       claim settlements, up to the total of all amounts insured, will      financial situation or needs. Because of this
We will only collect personal information about an individual       cannot do so must refer the complaint to a manager. The
from that individual, unless it is unreasonable or impractical to   manager has a further five business days to resolve the            be calculated with reference to Your GST status and the GST          You should, before acting on the advice, decide if it is right
do so.                                                              matter. If the manager cannot resolve the matter You may ask       status of the property which is the subject of the claim.            for You and consider the information contained in this
                                                                    him or her to refer it to the Lumley IDR Committee which           We will not be liable to pay any GST, or any fine, penalty           document carefully.
Overseas recipients
                                                                    then has 15 business days to make a decision. When We make         or charge that You are liable for arising out of Your                Lumley Insurance’s employees are paid an annual salary and
If Your personal information is collected by or supplied to a       Our decision We will also inform You of Your right to take this    misrepresentation of, or failure to disclose, Your proper input      possibly bonuses based on performance criteria and
foreign organisation We will ensure it will be held, used or        matter to the Office of the Australian Information                 tax credit entitlement on the Premium relating to the Policy.        achievement of company goals. They are not otherwise
disclosed only in accordance with the Act. We collect and           Commissioner (OAIC) together with contact details and the                                                                               remunerated for any advice or dealing service that they
provide Your personal information to a call centre in South                                                                            In respect of Your Policy with Us, where You are registered for
                                                                    time limit for applying to the OAIC. In addition if You have not   GST purposes, You should calculate Your proposed Sums                provide to You unless they tell You otherwise.
Africa, an information technology centre in India and a             received a response of any kind to Your complaint within 30
customer survey service in New Zealand.                                                                                                Insured with reference to the GST status of each item of             If an intermediary has been used to arrange the Policy, We
                                                                    days, then You have the right to take the matter to the OAIC.      property to be insured. Depending on the GST status of each          may pay them remuneration such as a commission or fee.
Marketing                                                           The OAIC is the statutory body given the responsibility of         property to be insured, the Sums Insured may or may not
We also collect Your information so that We and Our related         complaint handling under the Act. The OAIC is independent          include a GST component. An amount for GST should only be
companies and business alliance partners can offer You              and will be impartial when dealing with Your complaint. The        included in the Sum Insured if the property to be insured is
services and products that We believe may be of interest to         OAIC will investigate Your complaint, and where necessary,         not used 100% for business use. All items of property to be
Lumley Insurance Commercial Business Package > Policy Wording > Important Information                                                                                               Lumley Insurance Commercial Business Package > Policy Wording > General Provisions

                                                                                                                                     Provisions                                                                                                       11
12. UNDERINSURANCE                                                 internal record of such changes (You can get a paper copy         GENERAL DEFINITIONS                                                   “Period of Insurance” means the time cover commences to
It is Your responsibility to ensure that the Sums Insured of the   free of charge by calling Us).                                    These definitions shall apply unless there is a more specific         the time cover expires. The dates are shown on the current
Vehicle or property You want insured by this Policy are            Other documents may form part of our Product Disclosure           definition.                                                           Policy Schedule. Unless stated otherwise, cover shall expire at
adequate. Sums Insured should reflect the new replacement          Statement and Policy. If they do We will tell You in the                                                                                4.00pm local time at the place where You arranged the cover.
                                                                                                                                     “Aircraft” means any craft or object designed to travel
value of any Vehicle or property to be insured. If Sums Insured    relevant document.                                                through air or space, other than model Aircraft.                      “Policy” means this document, the Policy Schedule and any
are not adequate, claims may not be paid in full.                                                                                                                                                          attachment or memoranda affixed and any future documents
                                                                                                                                     “Business Hours” means when You or any of Your                        issued to You which amends the Policy wording or Policy
You should review the adequacy of Sums Insured periodically        16. SECTION 40 INSURANCE CONTRACTS ACT 1984(CTH)                  employees are at the Business Premises for the purpose of
during the Period of Insurance and prior to renewal each year.                                                                                                                                             Schedule. Together they form the insurance contract.
                                                                   The following only applies to the Management Liability Cover      conducting Your Business.
Inadequacy of Sums Insured can present significant issues of                                                                                                                                               “Policy Schedule” means the most current Schedule of
financial hardship. If You are unable to establish the adequacy    Section of this Policy:                                           “Business Premises” the buildings, outbuildings, yards and            Insurance or any future renewal Schedule, including any
of Sums Insured, You should seek assistance from Your              Management Liability is issued on a “Claims made and              land used by You for Your Business at the Situation.                  endorsements issued by Us in connection with this Policy.
insurance advise.                                                  notified basis”.                                                  “Business Property” means buildings, contents, Stock                  “Rewriting of Records” means the cost of restoration of
13. FINANCIAL CLAIMS SCHEME                                        This insurance contract does not provide any cover for events     and items listed on the current Policy Schedule and used              computer records, documents, manuscripts, securities, deeds,
                                                                   which occurred before the contract was entered into, unless       in Your Business.                                                     specifications, plans, drawings, designs, business books and
This policy may be a ‘protected policy’ under the Federal
Government’s Financial Claims Scheme (FCS) and only applies        the Policy Schedule specifies otherwise.                          “Computer Virus” means an executable program or                       other records of every description.
in the event of an insurer becoming insolvent and the Federal      This insurance Policy does not provide any cover for Claims       computer code segment that is self-replicating, requires a            “Situation” means the Situation stated in the current
Treasurer declaring that the FCS will apply to that insurer.       made after the expiry of Your Policy. However, under s40(3) of    host program or executable disc segment in which it can be            Policy Schedule.
                                                                   the Insurance Contracts Act 1984(Cth) (ICA) We are not relieved   contained and which destroys or alters the host program or
Payment of a claim under the FCS is subject to the Scheme’s                                                                          other computer code or data causing undesired program or              “Stock” means:
eligibility criteria being met.                                    of liability by reason only that the Claim was made after the
                                                                   expiration of the insurance if:                                   computer system operation.                                            a) products and material You intend to sell;
Information about the FCS can be obtained from the                                                                                   “Excess” means the amount, or the loss applicable to a                b) raw or consumable materials used by You to make or alter
Australian Prudential Regulation Authority at                      a) You give notice before the Policy expires to Us of facts
                                                                      which may give rise to a claim against You; and                specified period of time, expressed as an Excess on the                  Your products; or by calling 1300 55 88 49.                                                                                         current Policy Schedule or elsewhere in the Policy. This is the
                                                                   b) That notice is given to Us as soon as reasonably                                                                                     c) Your products while being made, repaired or altered;
                                                                                                                                     first amount of any loss that You must pay before We pay
                                                                      practicable after You became aware of those facts.             Your claim.                                                           d) any consumable products or materials used in Your
14. EXCLUSIONS AND CONDITIONS                                                                                                                                                                                 Business;
                                                                   The above explanation of the operation of s40(3) of the ICA       “Family” means any member of Your Family who lives
General Exclusions apply to all sections of this Policy. Each      does not form part of this Policy wording.                                                                                              e) goods for which You are responsible.
section also contains exclusions which apply specifically to                                                                         permanently with You, including Your partner.
that section. The exclusions explain the circumstances in                                                                            “Flood” means the inundation of normally dry land by water            Under the Theft cover section, Stock does not include tobacco,
which We will not cover You. Please refer to the General           17. VICTORIAN FIRE SERVICE LEVY (“FSL”)                           escaping or released from the normal confines of any natural          products containing tobacco, cigars, cigarettes or alcohol
Exclusions and the exclusions in each section for full details.                                                                      watercourse or lake (whether or not they have been altered or         unless they are specified on the current Policy Schedule.
                                                                   Any amount paid or payable under this Policy for the Victorian
General Conditions apply to all sections of this Policy. Each                                                                        modified) or from any dam, reservoir or canal.                        “Strongroom” means a burglar-resistant structure
                                                                   component of the FSL shown in the (“the Victorian FSL”) will
section also contains exclusions which apply specifically to       not be refunded if a premium refund is allowed as a result of     “Hovercraft” means any vessel, craft or device made or                constructed of masonry and steel which has been designed
that section. The conditions explain the obligations which         this Policy being amended or cancelled except:                    intended to float on, or in, or travel on or through the              to resist fire and attack by hand-held or power operated tools
You must comply with to be able to make a valid claim.                                                                               atmosphere or water on a cushion of air provided by a                 and has been specifically designed for the storage of Money
                                                                   a) if this Policy is cancelled during the cooling off period as                                                                         and valuables.
Please refer to the General Conditions and the conditions in                                                                         downward blast.
                                                                      shown under ‘Important Information 5: Cooling off’, We
each section for full details.                                                                                                       “Money” means current coin, bank notes, currency notes,               “Subsidiary Company” means any company in which You
                                                                      will refund the FSL; or
                                                                                                                                     cheques, credit card sales vouchers, securities, postal orders,       have a controlling interest. For the purpose of this definition
                                                                   b) if this Policy is amended or cancelled due to the sale of                                                                            the term ‘controlling interest’ shall mean the beneficial
15. UPDATING THE PRODUCT DISCLOSURE STATEMENT                                                                                        Money orders, negotiable and nonnegotiable securities and
                                                                      Business Property insured by this Policy and provided that                                                                           ownership of shares carrying more than fifty per cent (50%) of
                                                                                                                                     other like documents of value, phone cards and/or stored
We may need to update this Product Disclosure Statement               the property sold was the subject of the Victorian FSL, We                                                                           votes capable of being cast at a general meeting of all
                                                                                                                                     value cards, unused postage and revenue stamps, public
from time to time if certain changes occur where required             will refund the unused portion of the Victorian FSL that                                                                             shareholders of the company.
                                                                                                                                     transport tickets, private transport tickets (excluding airline
and permitted by law. We will issue You with a new Product            had been charged in relation to that property.
                                                                                                                                     tickets), bridge or highway tokens, car wash tokens, lottery          “Terrorism” means an act including but not limited to the
Disclosure Statement or a Supplementary Product Disclosure         Subject otherwise to the terms, conditions and exclusions of      tickets, authorised gift vouchers, discount vouchers from             use or threat of force or violence by any person or group(s) of
Statement or other compliant document to update the                the Policy.                                                       external parties, contents of franking machines; and includes         persons, whether acting alone or on behalf of or in
relevant information except in limited cases. Where the                                                                              cash boxes, alarm bags, or any other portable container used          connection with any organisation(s) or government(s) which
information is not something that would be materially                                                                                to convey Money all belonging to You or for which You are             from its nature or context is committed for or in connection
adverse from the point of view of a reasonable person                                                                                legally responsible or have assumed a responsibility to insure        with any political, religious, ideological, ethnic or similar
considering whether to buy this insurance, We may issue You                                                                          but does not mean any of these in the possession of or                purposes or reasons, including the intention to influence any
with notice of this information in other forms or keep an                                                                            carried by professional Money carriers, professional carriers or      government and/or to put the public or any section of the
                                                                                                                                     common carriers.                                                      public in fear.
Lumley Insurance Commercial Business Package > Policy Wording > General Provisions                                                                                                          Lumley Insurance Commercial Business Package > Policy Wording > General Provisions

                                                                                                                                           Provisions                                                                                                          13
“Vehicle” means any type of machine on wheels or on                c) Radioactive Contamination                                            4. Unoccupancy                                                          consequential loss that is solely and directly occasioned by a
self-laid tracks made or intended to be propelled by other              We will not pay for any:                                           Unless We otherwise agree in writing, We will not pay for any           defined contingency (as defined hereunder), arising under
than manual or animal power, and any trailer or other                                                                                      loss or damage to Your Business Property if the occurrence              any of the following cover sections:
attachment to be utilised in conjunction with or drawn by               a) loss or damage to property eligible for insurance by
                                                                           the relevant Nuclear Insurance Pool and/or                      happens after Your Business Premises has been unoccupied                a) Fire and Perils;
any such machine.                                                                                                                          for more than 90 consecutive days.
                                                                           Association; or                                                                                                                         b) Business interruption;
“Watercraft” means any vessel, craft or thing made or
intended to float on or in or travel through water, other than          b) loss, cost, damage, liability or expense directly               5. Wilful acts                                                          c) Money;
model boats.                                                               or indirectly caused by or contributed to by or                 Subject to the provisions of the Insurance Contracts Act 1984,          d) Glass;
                                                                           arising from:                                                   We will not pay for any loss or damage caused by either Your
“You” or “Your” means the person(s), companies or firms                                                                                                                                                            e) Machinery and electronic;
named on the current Policy Schedule as the ‘Insured’.                      i)   ionising radiation from or contamination                  wilful act or by the wilful act of another party committed
                                                                                 by radioactivity from any nuclear fuel or from            with Your knowledge and consent, which You were capable                 f)   General Property;
“Your Business” means the business as described in the                           any nuclear waste or from the combustion of               of preventing.                                                          but only to the extent that such claim would otherwise be
Policy Schedule (and, where applicable, as further described                     nuclear fuel;                                                                                                                     insured under those sections.
in any more specific underwriting information provided to Us                                                                               6. Known defects
at the time when this insurance was negotiated).                            ii) the radioactive, toxic, explosive or other                                                                                         This exclusion does not apply in respect of the Theft cover
                                                                                hazardous or contaminating properties of any               We will not pay for loss or damage caused by faults or defects          section, if provided by this Policy.
“We”, “Us”, or “Our” means the insurer of the Policy, WFI                       nuclear installation, reactor or other nuclear             known to You, or any employee whose knowledge in law
Insurance Limited A.B.N. 24 000 036 279, trading as Lumley                                                                                 would be deemed to be Yours, and not disclosed to Us at the             For the purposes of this exclusion only, ‘Defined contingency’
                                                                                assembly or nuclear component thereof;
Insurance.                                                                                                                                 time this insurance was arranged.                                       shall mean fire, lightning, explosion (other than loss or
                                                                            iii) any weapon or device employing atomic or                                                                                          destruction of or damage to boilers and pressure vessels),
                                                                                 nuclear fission and/or fusion or other like reaction      7. Date recognition                                                     Aircraft and other aerial devices or articles dropped from
GENERAL EXCLUSIONS                                                               or radioactive force or matter; or                                                                                                them, riot, civil commotion, strikers, locked out workers,
                                                                                                                                           In respect of any claim of whatsoever nature which consists
The following General exclusions apply to all Parts of this                 iv) the radioactive, toxic, explosive or other                 of, or arises directly or indirectly out of, or in connection with      persons taking part in labour disturbances, malicious persons,
Policy.                                                                         hazardous or contaminating properties of any               the failure or inability of any:                                        earthquake, storm, Flood, escape of water from any tank or
                                                                                radioactive matter.                                                                                                                apparatus or pipe, impact by any road Vehicle or animal, or
1. a) War                                                                                                                                  a) electronic circuit, microchip, integrated circuit,                   theft (other than theft by employees).
                                                                   This Policy also excludes any loss, destruction, damage, death,            microprocessor, embedded system, BIOS or other
We will not pay for any loss or damage arising directly or         injury, illness, liability, cost or expense of any nature directly or      instruction set, hardware, software, firmware, program,              8. Electronic Data exclusion
indirectly as a result of:                                         indirectly caused by, (or contributed to by, resulting from, or            computer, data processing equipment,                                 We will not cover Electronic Data or the cost of rewriting
    i)   war, invasion, act of foreign enemy, hostilities or       arising out of, or in connection with) any action taken in                 telecommunication equipment or systems, or any similar               records as a result of loss of electronic data.
         warlike operations (whether declared or not) and/ or      controlling, preventing, suppressing, retaliating against, or              device; or any
         civil war; and/or                                         responding to or in any way relating to the above.                                                                                              However, We will provide cover for losses to electronic data
                                                                                                                                           b) media or systems used in connection with any of the                  and Rewriting of Records arising out of the following perils:
    ii) mutiny, civil commotion assuming the proportions of        2.   Business in liquidation or ceases to trade                            foregoing, whether Your property or not, at any time to
        or amounting to a popular rising, military rising,                                                                                    achieve fully and successfully any or all of the purposes            fire, lightning; thunderbolt, explosion, implosion, earthquake,
        insurrection, rebellion, revolution, military and/or       If Your Business is placed into liquidation or administration, a           and consequential effects intended by the use of any                 subterranean fire, volcanic eruption, impact, Aircraft and/or
        usurped power.                                             receiver is appointed or the business is wound up or is                    number, symbol or word to denote, represent or express               other aerial device, breakage of glass, the acts of persons taking
                                                                   permanently discontinued, then unless otherwise agreed by                  a date including, but without being limited to, any failure          part in riots or civil commotions or of strikers or of locked out
    b) Terrorism                                                   Us in writing, all cover under this Policy ceases from the time                                                                                 workers or of persons taking part in labour disturbances which
                                                                                                                                              or inability to recognise, capture, save, retain or restore
    i)   We will not pay for any death, injury, illness, loss,     Your interest is transferred or Your Business ceases to trade.             and/or correctly to manipulate, interpret, transmit, return,         do not assume the proportions of or amount to an uprising,
         damage, liability, cost or expense of any nature                                                                                     calculate or process any date, data, information,                    storm, tempest, rainwater, wind, hail, water and/or other
         directly or indirectly caused by, resulting from, or in   3.   Geographical limitations                                                                                                                   liquids, substances discharged, overflowing and/or leaking
                                                                                                                                              command, logic or instruction as a result of or in
         connection with, any act of Terrorism regardless of       Unless We agree in writing to the contrary, We will not pay for            connection with:                                                     from any apparatus, appliance or pipes.
         any other contributing cause or event.                    any loss or damage to a Vehicle or property insured by this                                                                                     If the Theft cover section of the Policy is current We will also
                                                                   Policy that is outside the Commonwealth of Australia at the                 i)   anything referred to in (a) or (b) recognising, using or
    ii) We will not pay for any death, injury, illness, loss,                                                                                       adopting any date, day of the week or period of time,          provide cover for losses to electronic data arising out of theft
        damage, liability, cost or expense of any nature           time of its loss or damage, except as specifically stated                                                                                       of any computer and/or computer hardware, firmware,
                                                                   otherwise in the appropriate Part.                                               otherwise than as, or other than, the true or correct
        directly or indirectly caused by, resulting from, or in                                                                                     date, day of the week or period of time; or                    microchip, integrated circuit or device containing such
        connection with, any action taken in controlling,                                                                                                                                                          electronic data.
        preventing, suppressing or in any way relating to the                                                                                  ii) the operation of any command or logic which has
                                                                                                                                                   been programmed or incorporated into anything                   If the Electronic equipment cover section of the Policy is
        matters set out in paragraph b)(i) of this Exclusion.                                                                                                                                                      current and Electronic Data and electronic data media is
                                                                                                                                                   referred to in (a) or (b) above.
General exclusion b) does not apply to the Theft, Money, Glass                                                                                                                                                     insured We will also provide cover for losses to electronic data
and General Property Sections.                                                                                                             This exclusion will not exclude any claim for subsequent loss,          arising out of vibration, power surge, low voltage, mechanical,
                                                                                                                                           destruction of, or damage to any Business Property or                   electrical and electronic breakdown, but not breakdown
Lumley Insurance Commercial Business Package > Policy Wording > General Provisions                                                                                                    Lumley Insurance Commercial Business Package > Policy Wording > General Provisions

                                                                                                                                       Provisions                                                                                                        15
occurring as a result of any virus, worm, Trojan Horse, hacking,   c) a premium funding company only in accordance with the            7. Designation of property                                            11. Jurisdiction
or any unauthorised access.                                           power of attorney You granted to such company. We will           For the purpose of determining under which item any                   All disputes arising out of or under this Policy shall be subject
For the purposes of this exclusion electronic data means any          refund the premium for the unexpired Period of Insurance         property is insured, We agree to accept the designation under         to determination by any court of competent jurisdiction within
facts, concepts and/or information converted to a form usable         to the premium funding company, from the date We                 which such property appears in Your books of account.                 Australia according to the law which applies to that jurisdiction.
for communications, displays , distribution,                          receive the request or, the date they specify if that is a
                                                                      later date.                                                      Provided always that this General Policy condition shall not          12. Non-imputation
processing by electronic and/or electromechanical data                                                                                 apply to the Theft cover section with respect to tobacco,
processing or electronically controlled equipment which            5. Claims preparation expenses                                      products containing tobacco, cigars, cigarettes and alcohol.          Where this insurance is arranged in the joint names of more
includes but is not limited to programs, software or other                                                                                                                                                   than one insured, as described in the definitions of You, it is
                                                                   We will pay for costs necessarily and reasonably incurred for       Furthermore, under the Theft cover section, Stock does not            hereby declared and agreed that:
coded instructions for such equipment.                             the preparation of a claim for which We agree to indemnify          include tobacco, products containing tobacco, cigars,
                                                                   You under this Policy. The most We will pay is $25,000 in total     cigarettes or alcohol unless they are specified on the current        a) each insured shall be covered as if it made its own
                                                                   for any one claim, unless a higher amount is included in the        Policy Schedule.                                                         proposal for this insurance;
                                                                   particular section of the Policy.                                                                                                         b) any declaration, statement or representation made in any
The following general conditions apply to all sections of                                                                              8. Excess                                                                proposal shall be construed as a separate declaration,
this Policy.                                                       This is provided that before You incur these claim preparation
                                                                   costs You obtain Our written approval to incur these costs.         If more than one Excess can be applied to one occurrence,                statement or representation by each insured;
1. Breach of Condition or Warranty                                                                                                     then You will only need to pay the highest Excess. Sums               c) any knowledge possessed by any insured shall not be
                                                                   6. Claims                                                           Insured, Limits and sub-Limits of Liability shall apply in               imputed to the other insured(s).
Breach of a condition or warranty without Your knowledge or                                                                            addition to, and shall not be reduced by, the amount of any
consent or error in name, description or Situation of property     What You must do after loss, damage or accident:
                                                                                                                                       applicable Excess.                                                    13. Other persons or organisations
will not prejudice Your rights under this Policy provided          a) Protect Yourself from any danger present;
notice in writing is given to Us when such breach or error                                                                             This General Condition will not apply to the Motorpack®               If any person or entity shall have any interest in the Business
                                                                   b) Assist other people within Your capabilities if required;        Section of the Policy.                                                Property, We shall protect that interest in the event of a claim,
comes to Your knowledge. Reasonable extra premium shall
be paid if required, from the date of such breach or error.        c) Take reasonable steps to prevent further loss, damage                                                                                  provided that interest is disclosed in Your Business records
                                                                      or liability;                                                    9. Goods and Services Tax (GST)                                       and You shall have disclosed the nature and extent of that
2. Accountancy records                                             d) Notify the police immediately if any of Your property is lost,   The amount of premium payable by You for this Policy                  interest to Us at the time of notification of the claim.
You must provide to Us all books of account, business books           stolen, or maliciously damaged and provide the police with       includes an amount on account of the GST on the premium.              Where the separate interests of more than one party in the
and other documents as may be required to investigate or              all assistance to apprehend the offending party;                 When We pay a claim, Your GST status will determine the               Business Property are insured under this Policy, any act or
verify claims. If You do not, We may refuse to pay or may                                                                              amount We pay.                                                        neglect of one party will not prejudice the rights of the
                                                                   e) Advise Us of the claim as soon as practicable and then
reduce the amount of a claim.                                         supply Us with full written details by completing Our            When You are:                                                         remaining party or parties provided that the remaining
                                                                      claim form. You or someone acting on Your behalf must            a) not registered for GST, the amount We pay is the Sum               party(ies) shall, within a reasonable time after becoming
3. Bankruptcy or insolvency                                                                                                                                                                                  aware of any act or neglect whereby the risk of loss, damage
                                                                      complete a claim form within a reasonable time of an                Insured/limit of indemnity or the other limits of insurance
In the event that You should become bankrupt or insolvent,            occurrence. If You do not, We may reduce the amount We              cover including GST;                                               or destruction has increased, give notice in writing to Us and
We shall not be relieved thereby of the payment of any claims         pay if the delay causes increased costs or prevents Us                                                                                 shall on demand pay such reasonable additional premium as
hereunder because of such bankruptcy or insolvency.                                                                                    b) registered for GST, We will pay the Sum Insured/ limit of          We may require.
                                                                      investigating the claim;                                            indemnity or the other limits of insurance. Any payments
In case of execution against You of any final judgment             f)   Any invoices, bills, demands letters or notices You receive       We make will be reduced by any relevant GST                        You cannot transfer the Policy into someone else’s name
covered by this Policy being returned ‘unsatisfied’ by reason           from other people involved in the loss, damage or                 component, including but not limited to, any input tax             without Our written consent.
of such bankruptcy or insolvency, then an action may be                 accident must be sent to Us as soon as possible.                  credit to which You are entitled for any acquisition which         All persons entitled to claim under the Policy are bound by
maintained by the injured party or their representative against                                                                           is relevant to Your claim, or which You would have been            the terms and conditions of the Policy.
Us in the same manner, and to the same extent as You but           What You must not do after a loss or accident:
                                                                                                                                          entitled were You to have made a relevant acquisition.             When a claim is paid under the Policy and is also recoverable
not in excess of the Limit of Liability.                           a) You must not admit fault or agree to pay for damage
                                                                      without Our consent. Do not make an offer, settle, or            You must advise Us of Your correct entitlement to an input            under another Policy or policies, You agree to permit Us to
4. Cancellation                                                       attempt to settle any claim against You. If You do We may        tax credit on Your Premium and the correct entitlement to an          seek contribution from the other insurer or insurers.
                                                                      not pay all or part of the claim.                                input tax credit on each item of property to be insured.
The Policy may be cancelled by:                                                                                                                                                                              14. Our maximum liability
                                                                   b) You must not incur any costs or expenses or authorise            Any GST liability arising from Your incorrect advice is payable
a) You at any time by notifying Us in writing. We will refund                                                                                                                                                Except as otherwise stated elsewhere in this Policy, the
                                                                      repairs (other than necessary temporary repairs) without         by You.
   the premium for the unexpired Period of Insurance;                                                                                                                                                        maximum amount We will pay will not exceed the amount
                                                                      Our agreement.                                                   10. Inspections                                                       stated in the Policy Schedule as the Sum Insured or the Limit
b) Us, only where allowed by the Insurance Contracts Act
   1984. We will refund the premium for the unexpired                                                                                  We (or agents appointed by Us) have the right to inspect              of Liability for those sections selected.
   Period of Insurance;                                                                                                                and examine, by mutual appointment, any Business                      The Sum Insured and sub-Limits of Liability shall apply in
                                                                                                                                       Property insured.                                                     addition to, and shall not be reduced by, the amount of any
                                                                                                                                                                                                             applicable Excess.
Lumley Insurance Commercial Business Package > Policy Wording > General Provisions                                                                                                         Lumley Insurance Commercial Business Package > Policy Wording > General Provisions

                                                                                                                                          Provisions                                                                                                      17
15. Premium funders                                                  We will not reinstate the Sum Insured on the Fire and Perils         b) You may without prejudicing Your position under
If the premium has been funded by a premium funding                  cover or Business Interruption cover sections if We have paid           this Policy:
company which holds a legal right over the Policy by virtue of       a total loss under either of these sections.                            i)   release any statutory governmental, semi
a notice of assignment and irrevocable power of attorney, a          19. Rewards                                                                  -governmental or municipal authority from any
refund will be made to the premium funding company of the                                                                                         liability if required at law to do so;
proportionate part of the premium applicable to the                  We will pay You up to $5,000 or any higher amount shown in
                                                                     the current Policy Schedule for the reasonable cost of any              ii) agree to enter into a contract for storage of goods or
unexpired Period of Insurance.                                                                                                                   merchandise if the terms of the contract include a
                                                                     reward paid by You to recover any property belonging to You
16. Progress payments                                                or for which You are responsible that is lost, destroyed or                 disclaimer clause;

We will not unreasonably withhold progress payments. We              damaged and which is insured under the Fire and Perils, Theft,          iii) agree to enter into a lease for occupancy of any
will make progress payments on claims at intervals to be             Money or Glass cover sections of this Policy.                                building or part of a building, or a lease, or hiring of
agreed by Us following receipt of an interim report from Our         However:                                                                     property where the terms of the lease, or hiring,
loss adjuster or representative.                                                                                                                  include a disclaimer clause in favour of the lessor or
                                                                     a) the terms of the reward must be agreed by Us before it is                 the owner.
17. Reasonable care                                                     offered; and

You must take reasonable precautions to prevent personal             b) no such payment shall be made by You unless the value
injury or property damage as if You were not covered by this            of the property recovered exceeds the reward.
Policy such as:                                                      We shall not unreasonably withhold or refuse consent
a) if You discover Your products may be defective and the            to the terms of any reward payable under this General
   defect may cause a claim under the Public and Products            Policy condition.
   Liability cover section, at Your expense You must take            20. Sale of salvage
   reasonable steps to restrict, trace, recall, modify, replace or
   repair the products;                                              We will not sell or dispose of any salvage without giving You
                                                                     the opportunity to buy it at its salvage value, provided that this
b) maintain and look after other person’s or organisation’s          condition does not allow You to abandon the property to Us.
   property and buildings used or occupied by You, in
   accordance with Your agreement with them;                         This condition will not apply to the Motorpack® section of
                                                                     this Policy.
c) if Your occupation includes digging below ground at sites
   away from Your Business Premises You must obtain the              21. Single occurrence
   location of underground services from the owners of the
                                                                     We will not pay for loss or damage to property covered by the
                                                                     Policy under more than one section of the Policy in respect of
d) use and store all hazardous materials as required by law.         the same item and occurrence unless a relevant Sum Insured
If You do not take reasonable precautions We may refuse to           has been paid out in full and You have not been fully covered
pay part or all of Your claim.                                       for the loss or damage.

18. Reinstatement of Sum Insured                                     22. Waiver of subrogation rights

In the event of damage insured under one or more of the Fire         We may not be liable to pay any benefits under this Policy for
and Perils, Business Interruption, Theft, Money and Glass cover      loss, damage or liability if You agree, or have agreed, to limit
sections of this Policy, the amount by which the Sum Insured         or exclude any right of recovery against any third party who
or Limit of Indemnity is reduced as a consequence of the loss        would be liable to compensate You with respect to that loss,
or damage will be automatically reinstated as from the date of       damage or liability however:
loss or damage provided that:                                        a) We shall waive any rights and remedies or relief to which
a) there is no written request from You or written notice by            We are or may become entitled by subrogation against:
   Us to the contrary;                                                   i)   any co-insured (including directors, officers and
b) the section is an operative section of the Policy; and                     employees);

c) You pay the premium which We require for                              ii) any corporation or entity (including directors, officers
   the reinstatement.                                                        and employees) owned or controlled by any insured,
                                                                             or against, any co-owner of the property insured.
Lumley Insurance Commercial Business Package > Policy Wording > Fire and Perils                                                                                                            Lumley Insurance Commercial Business Package > Policy Wording > Fire and Perils

Fire and Perils
Cover Section
                                                                                                                                      Fire and Perils
                                                                                                                                      Cover Section                                                                                                       19
This section forms part of the Policy only if shown in the              aesthetic, historic, scientific or social value for past,     This definition of ‘Contents’ is subject to the ‘Designation of         dismantling) of damaged property insured necessarily
Policy Schedule as having been taken by You.                            present or future generations;                                property’ General Policy condition.                                     incurred to comply with the requirements of any Act of
                                                                   e) computer systems records, manuscripts, other                    “Market Value” means the estimated amount for which the                 Parliament or Regulation made under an Act or by-law or the
                                                                      documents, deeds, specifications, plans, drawings,              Business Property should exchange immediately before the                Regulation of any Municipal or Statutory Authority, subject to
DEFINITIONS                                                                                                                                                                                                   the following provisions and subject also to the terms,
                                                                      designs, business books and other records of every              damage, between a willing buyer and a willing seller in an
Some words have special meaning wherever they appear in               description;                                                    arms-length transaction, after proper marketing, wherein the            conditions and sums insured of this section. Provided that:
this section. These words and their meanings are listed below.                                                                        parties had each acted knowledgeably, prudently and                     a) the work of reinstatement, must be commenced and
                                                                   f)   paintings, works of art and curios;
“Buildings” means Buildings and structural appurtenances at                                                                           without compulsion.                                                        carried out within a reasonable period, failing which We
the Situation. Buildings includes:                                 g) Stock;                                                                                                                                     will not pay more than the amount which would have
                                                                   h) goods sold but not delivered and goods held by You on                                                                                      been payable under the Policy if the work of
a) verandahs, carports, car parks, sealed driveways and paths,                                                                        COVER
                                                                      consignment or commission;                                                                                                                 reinstatement had been commenced and carried out
   shelters, awnings, gangways, staircases and all
                                                                                                                                      The scope of cover provided is explained in the clauses                    with reasonable dispatch;
   outbuildings;                                                   i)   property not owned by You but on Your Business
                                                                        Premises for service, repair, alteration or safe keeping;     ‘Defined events cover’ and ‘Accidental damage cover’.                   b) the work of reinstatement may be carried out wholly or
b) fixtures and fittings owned by the owner of the building;
                                                                                                                                      We will cover You for loss or damage caused by the events                  partially upon any other site, if the requirements of the
c) underground and above ground services including                 j)   property of Your welfare, sports and social clubs.
                                                                                                                                      listed under ‘Defined events cover’ and ‘Accidental damage                 Act, Regulation or by-law necessitate it, subject to Our
   aprons, supply mains and meters;                                Contents does not include:                                         cover’ to Your Business Property which occurs during the                   liability not being increased;
d) walls, gates, fences, flagpoles, floodlights and signs;         k) Buildings;                                                      Period of Insurance.                                                    c) Our total liability under this clause ‘Extra cost of
e) permanently fixed water and fuel tanks.                         l)   growing crops, trees or plants other than pot-plants;         The current Policy Schedule shows what You have covered                    reinstatement’ will be limited to;
                                                                                                                                      and the method of settlement.                                               i)   the Sum Insured shown in the current Policy Schedule
Buildings does not include:                                        m) animals, livestock, fish, birds and any other living organism
                                                                      except laboratory cultures, Stocks of foodstuffs, of nursery                                                                                     for ‘Extra cost of reinstatement’ which shall be in
    i)   Plant and machinery;                                                                                                                                                                                          addition to the Sum Insured; or
                                                                      plants, or Stocks of a pet shop;                                BASIS OF SETTLEMENT
    ii) Stock;                                                                                                                                                                                                    ii) if no such Sum Insured is stated, and the damage is
                                                                   n) motor Vehicles or trailers, caravans or motorcycles all         There are two methods of paying Your claims. They are
    iii) Contents;                                                    while registered or licensed to travel on a public road,                                                                                        less than fifty percent (50%) of the Replacement Cost
                                                                                                                                      ‘Reinstatement or replacement value’ and ‘Indemnity value’.
                                                                      provided that this exclusion will not apply to:                                                                                                 of the Buildings or Contents, Our liability shall be
    iv) Property undergoing erection, construction, alteration
                                                                                                                                      The claim payment method You are covered for is shown on                        limited to the extra cost necessarily incurred in
        or addition (including the partial dismantlement of             i)   mobile plant and equipment (excluding cars, sedans,      the current Policy Schedule.                                                    reinstating the damaged Business Property only;
        existing structures), where the total contract value of              panel vans, and trucks) not otherwise insured;
        all work to be carried out at any one Business                                                                                1. Reinstatement or replacement value                                   d) the amount recoverable shall not include the additional
        Premises exceeds $500,000 or 20% of the total Sum               ii) motor Vehicles or trailers, caravans or motorcycles                                                                                  costs incurred with complying with any such Act,
        Insured on Buildings and Contents, whichever is the                 that are Stock in trade of the business;                  We will pay the cost of rebuilding, replacing or repairing any             Regulation or by-law or requirement with which You
        lesser provided that this limit shall apply only to the    o) Money;                                                          damaged part of Your Business Property to the same condition               have been required to comply prior to the happening
        portion of the Business Premises or Business Property                                                                         as when they were new or, where appropriate, in accordance                 of the damage;
                                                                   p) jewellery, furs, bullion, articles containing gold and silver   with the ‘Output replacement’ clause set out below.
        which is the subject of any such work and not to any          which are not Stock and which exceed $10,000 any one                                                                                    e) the underinsurance condition of the Fire and Perils Cover
        other portion of the Business Property;                       item;                                                           Business Property may be rebuilt or erected at another                     Section of the Policy will not be applied to the amount
    v) Land, unsealed driveways and paths, dams, bridges,                                                                             location and in a manner suitable to You provided You pay                  payable under this clause.
                                                                   q) Contents undergoing erection, construction, alteration or       any additional costs to build or erect elsewhere.
       canals, tunnels, railway tracks and roadways (not at           addition (including the partial dismantlement of existing
       the Situation), wharves, docks and piers.                                                                                      If the Business Property is lost or damaged You must                    2. Indemnity value
                                                                      structures), where the total contract value of all work to be
This definition of ‘Buildings’ is subject to the ‘Designation of      carried out at any one Business Premises exceeds $500,000       commence to rebuild, replace or repair within a reasonable              If the basis of settlement is shown in the Policy Schedule as
property’ General Policy condition.                                   or 20% of the total Sum Insured on Buildings and Contents,      time of the loss or damage, after Our consent has been                  Indemnity, We will pay the cost to repair or replace the
                                                                      whichever is the lesser, provided that this limit shall apply   obtained. If You do not, We will pay no more than the cost              insured property less an equitable amount for age, wear, tear,
“Contents” means all property at the Business Premises,                                                                               that would have been incurred if the work of rebuilding,                depreciation and will make an adjustment for the general
belonging to You or for which You are responsible.                    only to the portion of the Business Premises or Business
                                                                      Property which is the subject of any such work and not to       replacement or reinstatement has been commenced and                     condition and remaining useful life of the individual item or
Contents includes:                                                    any other portion of the Business Property;                     carried out with reasonable dispatch.                                   components that are damaged.
a) fixtures, fittings and glass owned by Your landlord             r)   land, dams, bridges, canals, roadways, tunnels, railway       Extra cost of reinstatement                                             We will also pay, in accordance with the ‘Extra Cost of
   which You are legally responsible for and                            tracks (not at the Situation), wharves, docks and piers;                                                                              Reinstatement’ clause, the additional costs required to
   leasehold improvements;                                                                                                            (Applicable to Buildings, machinery and plant).                         comply with the requirements of any statutory authority or
                                                                   s) Watercraft, Aircraft or any accessories, equipment or spare     Where ‘Reinstatement or replacement’ basis of settlement is             by-laws, provided You were not required to comply with any
b) machinery;                                                         parts whilst contained in or on these items unless they are     shown in the Policy Schedule, this section extends to include           of the by-laws prior to the loss or damage occurring.
c) plant permanently fixed to Your Buildings;                         Stock and are on Your Business Premises at the time of          the extra cost of reinstatement (including demolition or
                                                                      any loss or damage.
d) documents of title and any other documents of
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