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Complete version of the QBE Chamber Public Liability Policy


Complete version of the QBE Chamber Public Liability Policy

More Info

                    Liability Policy
C o r p o r a t e

  Welcome to QBE Insurance ___________________________ 2            Contractual Liability __________________________________ 6
                                                                    Employment Liability __________________________________ 6
Information Page                                                    Exports to the USA or Canada ________________________ 6
  Please Check the Schedule Details ___________________ 2           Faulty Workmanship __________________________________ 6
  Preventing QBE’s Right of Recovery __________________ 2           Fines, Penalties or Liquidated Damage________________ 6
  Other Party’s Interests ________________________________ 2        Information Technology, Computer Data,
                                                                    Program and Storage Media __________________________ 6
1. Definitions
                                                                    Jurisdiction ___________________________________________ 7
  Act of Terrorism _______________________________________ 2
                                                                    Libel and Slander _____________________________________ 7
  Aircraft ________________________________________________ 2
                                                                    Loss of Use ___________________________________________ 7
  Business ______________________________________________ 2
                                                                    Participant to Participant _____________________________ 7
  Deductible ____________________________________________ 2
                                                                    Pollution ______________________________________________ 7
  Employee ______________________________________________ 2
                                                                    Product Defect ________________________________________ 8
  Employment Practices ________________________________ 2
                                                                    Product Recall ________________________________________ 8
  Hovercraft _____________________________________________ 2
                                                                    Professional Liability _________________________________ 8
  Internet Operations ___________________________________ 2
                                                                    Property in Custody or Control _______________________ 8
  Limit of Liability ______________________________________ 3
                                                                    Punitive, Exemplary, Aggravated or
  Medical Persons ______________________________________ 3
                                                                    Multiple Damages _____________________________________ 8
  Occurrence ____________________________________________ 3
                                                                    Radioactivity __________________________________________ 8
  Period of Insurance ___________________________________ 3
                                                                    Sexual Molestation ____________________________________ 9
  Personal Injury ________________________________________ 3
                                                                    Terrorism ______________________________________________ 9
  Policy _________________________________________________ 3
                                                                    Tobacco _______________________________________________ 9
  Pollutants _____________________________________________ 3
                                                                    Vehicles _______________________________________________ 9
  Premium ______________________________________________ 3
                                                                    War ____________________________________________________ 9
  Property Damage _____________________________________ 3
  QBE ___________________________________________________ 3     4. Conditions
  Schedule ______________________________________________ 3         Acquisition of Properties and Businesses ____________ 9
  Territorial Limits ______________________________________ 3       Adjustment of Premium _______________________________ 10
  Vehicle ________________________________________________ 3        Cancellation ___________________________________________ 10
  Watercraft _____________________________________________ 3        Claims _________________________________________________ 10
  You/Your ______________________________________________ 4         Discharge of Liabilities _______________________________ 10
  Your Products _________________________________________ 4         Due Observance _______________________________________ 11
                                                                    Goods and Services Tax (GST) ________________________ 11
2. Coverage                                                         Governing Law ________________________________________ 11
  Liability _______________________________________________ 4       Inspection of Property ________________________________ 11
  Defence of Claims ____________________________________ 4          Insurance Contracts Act 1984 ________________________ 11
  Limit of Liability ______________________________________ 5       Notices ________________________________________________ 11
  Cross Liability _________________________________________ 5       Other Insurance _______________________________________ 12
                                                                    Payment of Premium __________________________________ 12
3. Exclusions                                                       Preventing QBE’s Right of Recovery __________________ 12
  Aircraft, Aircraft Products,
                                                                    Payment of Deductible ________________________________ 12
  Hovercraft and Watercraft ____________________________ 5
                                                                    Reasonable Care ______________________________________ 12
  Asbestos ______________________________________________ 5
                                                                    Subrogation ___________________________________________ 12
  Assault and Battery ___________________________________ 5
  Contractors or Subcontractors ________________________ 6      Q B E ’s P r i va cy P r o m i s e   _______________________ 12

                                                                                                                            Page 1
Welcome to QBE Insurance                                                    from its nature or context is done for, or in
                                                                            connection with, political, religious, ideological,
In this policy document You’ll find all the information
                                                                            ethnic or similar purposes or reasons, including the
You need to know about the type of cover(s) available,
                                                                            intention to influence any government and/or to
QBE’s terms and conditions, and making a claim.
                                                                            put the public, or any section of the public, in fear.
Please read this booklet and make sure that You are
                                                                    1.2     “Aircraft” means any vessel, craft or thing made
satisfied with what QBE offer.
                                                                            or intended to fly or move in or through the
This booklet and the insurance schedule QBE sends You                       atmosphere or space.
form Your legal contract with QBE, so please keep them
                                                                    1.3     “Business” means the business described in the
together in a safe place.
                                                                            Schedule including the provision and management
Please do not hesitate to contact Your broker or agent if                   of canteens, social, sports and welfare organisations
You have any questions about this policy booklet or Your                    for the benefit of Your employees, first aid, fire and
insurance cover.                                                            ambulance services formed with Your consent.

                                                                    1.4     “Deductible” means the amount You first bear
INFORMATION PAGE                                                            in relation to each Occurrence. The Deductible
                                                                            will apply to any costs and expenses incurred in the
Please Check the Schedule Details
                                                                            defence or investigation of claims under Coverage
Please check that the Schedule accurately states what You                   Clause 2.2 first, then to amounts (if any), which are
have insured. Especially check that the Limits of Liability                 subject to indemnity under the Coverage Clause 2.1.
are adequate.
                                                                    1.5     “Employee” means any person engaged under
                                                                            a contract of or for service or apprenticeship with You
Preventing QBE’s Right of Recovery
                                                                            but does not include any person employed under such
If You have agreed not to seek compensation from another                    a contract who is not a worker or employee for the
person who is liable to compensate You for any loss, damage                 purposes of any workers’ compensation legislation.
or liability, which is covered by this Policy, QBE will not cover
                                                                    1.6     “Employment Practices” means any wrongful or
You under this Policy for that loss, damage or liability.
                                                                            unfair dismissal, denial of natural justice, defamation,
                                                                            misleading representation or advertising, harassment
Other Party’s Interests
                                                                            or discrimination directly or indirectly related to
You must tell QBE about all parties (eg financiers, lessors) to             employment or prospective employment of any
be covered by this insurance. QBE will protect their interests              person or persons by You.
only if You have told QBE about them and QBE have agreed
                                                                    1.7     “Hovercraft” means any vessel, craft or thing made
to cover them.
                                                                            or intended to float on or in or travel on or through
                                                                            the atmosphere or water.
                                                                    1.8     “Internet Operations” means:
Any word or expression which this Policy defines as
having a particular meaning will have the meaning                   1.8.1   transfer of computer data or programs by use of
everywhere it appears.                                                      electronic mail systems by You or Your employees,
                                                                            including for the purpose of this Definition only,
1.1      “Act of Terrorism” means an act, including but
                                                                            part-time and temporary staff, contractors and
         not limited to the use of force or violence and/or the
                                                                            others within Your organisation whether or not such
         threat thereof, of any person or group(s) of persons,
                                                                            data or programs contain any malicious or damaging
         whether acting alone or on behalf of or in connection
                                                                            code, including but not limited to computer virus,
         with any organisation(s)or government(s) which
                                                                            worm, logic bomb, or Trojan horse;

Page 2
1.8.2    access through Your network to the world wide web             1.13.5   the effects of assault and battery not committed
         or a public internet site by Your employees, including                 by You or at Your direction unless reasonably
         for the purposes of this Definition only, part-time                    necessary for the purpose of preventing or
         and temporary staff, contractors and others within                     eliminating danger to persons or property.
         Your organisation;
                                                                       1.14     “Policy” means this document and each
1.8.3    access to Your intranet (meaning internal company                      endorsement issued by QBE attached, or intended
         information and computing resources) which is                          to be attached, to it.
         made available through the world wide web for Your
                                                                       1.15     “Pollutants” means any solid, liquid, gaseous or
         customers or others outside Your organisation; and
                                                                                thermal irritant or contaminant, including but not
1.8.4    the operation and maintenance of Your web site.                        limited to smoke, vapour, soot, fumes, acids, alkalis,
                                                                                chemicals and waste. Waste includes material to be
1.9      “Limit of Liability” means the applicable Limit
                                                                                recycled, reconditioned or reclaimed.
         of Liability specified in the Schedule and includes
         the amount of the Deductible.                                 1.16     “Premium” means the amounts payable
                                                                                for insurance under the Policy including any
1.10     “Medical Persons” means qualified medical
                                                                                amounts for GST.
         practitioners, nurses, dentists and first aid attendants.
                                                                       1.17     “Property Damage” means:
1.11     “Occurrence” means an event which results in
         Personal Injury or Property Damage, neither of                1.17.1   physical damage to or physical loss or physical
         which is expected nor intended from any person’s                       destruction of tangible property including any
         standpoint. All Personal Injury or Property Damage                     resulting loss of use of that property; or
         arising out of continuous or repeated exposure to
                                                                       1.17.2   loss of use of tangible property which has
         substantially the same general conditions shall be
                                                                                not been physically damaged, lost or destroyed
         construed as arising out of one Occurrence.
                                                                                provided such loss of use is caused by physical
1.12     “Period of Insurance” means the period specified                       damage to or physical loss or physical destruction
         in the Schedule.                                                       of other tangible property.

1.13     “Personal Injury” means:                                      1.18     “QBE” means QBE Insurance (Australia) Limited
                                                                                ABN 78 003 191 035.
1.13.1   bodily injury, disease, sickness, death, disability, shock,
         fright, mental anguish and mental injury. In the event        1.19     “Schedule” means the most current schedule issued
         of any claims, except claims caused by, contributed to                 by QBE in connection with this Policy.
         by or arising from exposure to asbestos, for Personal
                                                                       1.20     “Territorial Limits” means anywhere in the world
         Injury arising from latent injury, latent disease or
                                                                                subject to Exclusions 3.7 and 3.11.
         latent sickness, such injury, disease or sickness in
         respect of each claim shall be deemed to have first           1.21     “Vehicle” means any type of machine on wheels or
         happened on the day such injury, disease or sickness                   self laid track made or intended to be propelled by
         was first medically diagnosed and to be covered under                  other than manual or animal power and any trailer
         this Policy, that diagnosis must first occur during the                or other attachment made or intended to be drawn
         Period of Insurance;                                                   by any such machine.

1.13.2   the effects of false arrest, wrongful detention,              1.22     “Watercraft” means any vessel, craft or thing made
         false imprisonment or malicious prosecution;                           or intended to float on or in or travel on or through
                                                                                or under water.
1.13.3   the effects of wrongful entry or eviction;

1.13.4   the effects of a publication or utterance of a libel or
         slander or other defamatory or disparaging material;

                                                                                                                                  Page 3
1.23     “You/Your” means:                                           1.24    “Your Products” means any goods, products
                                                                             and property (after they have ceased to be in Your
1.23.1   The Insured named in the Schedule;
                                                                             possession or under Your control), which are or is
         (and including as if they were You):
                                                                             deemed to have been manufactured, grown, extracted,
1.23.2   all the subsidiary companies (now or subsequently                   produced, processed, assembled, constructed, erected,
         constituted) of the Insured named in the Schedule                   installed, repaired, serviced, treated, sold, supplied or
         provided their places of incorporation are within                   distributed by You (including any container thereof
         Australia or any Territory of Australia;                            other than a Vehicle).
1.23.3   every director, executive officer, employee, partner
         or shareholder of one of the Insureds designated in         2. COVERAGE
         clause 1.23.1 or 1.23.2 but only whilst acting within
                                                                     In consideration of the payment to QBE of the Premium,
         the scope of their duties in such capacity;
                                                                     QBE will indemnify You in accordance with this Policy,
1.23.4   every principal, in respect of that principal’s vicarious   provided that QBE will only be liable after the exhaustion
         or contingent liability for the acts or omissions of one    of the Deductible.
         of the Insureds designated in clause 1.23.1 or 1.23.2
         in the performance by them of work for that
                                                                     2.1     Liability
         principal, but subject always to the extent of coverage             QBE will pay in respect of Personal Injury or
         and the Limit of Liability provided by this Policy;                 Property Damage first happening during the Period
                                                                             of Insurance and caused by an Occurrence within the
1.23.5   every office bearer or member of social and sporting
                                                                             Territorial Limits in connection with Your Business:
         clubs, canteen and welfare organisations and first aid,
         fire and ambulance services formed with Your consent        2.1.1   all sums which You become legally liable to pay
         in respect of claims arising from their duties                      by way of compensation;
         connected with the activities of any such club,
                                                                     2.1.2   all costs awarded against You.
         organisation or service;

1.23.6   each partner, joint venturer, co-venturer or joint          2.2     Defence of Claims
         lessee of the Insured named in the Schedule but only:               With respect to the indemnity provided by this if the Insured named in the Schedule assumes active                 Policy QBE will:
         control of, or is required to arrange insurance for         2.2.1   defend in Your name and on Your behalf any claim
         the partnership, joint venture, co-venture or joint                 or legal action against You seeking damages on
         lease; and                                                          account of Personal Injury or Property Damage with respect to liability incurred as the partnership,              even if the action is groundless, false or fraudulent
         joint venture, co-venture or joint lease;                           and QBE will investigate, negotiate and settle any
                                                                             claim or legal action as QBE sees fit;
1.23.7   any director or senior executive of the Insured
         designated in clause 1.23.1 and 1.23.2 in respect           2.2.2   pay all legal costs and expenses incurred by QBE
         of private work undertaken by Your employees for                    and all interest accruing after entry of judgment
         such director or senior executive.                                  until QBE have paid, tendered or deposited in
                                                                             court such part of the judgment as does not
         “You/Your” does not include the interest of any person
                                                                             exceed the Limit of Liability;
         other than as described in 1.23.1 to 1.23.7 above.
                                                                     2.2.3   reimburse You for all reasonable expenses, other
                                                                             than loss of earnings, incurred with QBE’s consent,
                                                                             in the defence of a claim or legal action against You
                                                                             seeking damages on account of Personal Injury or
                                                                             Property Damage;

Page 4
2.2.4   pay reasonable expenses incurred by You for first aid               Any claim by an Insured party in respect of Personal
        to others at the time of Personal Injury caused by an               Injury to any person who is or was an employee
        Occurrence (other than medical expenses prohibited                  or deemed employee of any one or more Insured
        by Section 126 of the Health Insurance Act 1973).                   parties under the Policy or persons to whom
                                                                            the policy extends (regardless of the basis of their
        Provided that:
                                                                            liability) will be subject to a Deductible of $50,000
2.2.5   QBE will not be obliged to pay any claim or judgment                each and every Occurence or as specified in the
        or to defend any claim or legal action after the Limit              Schedule, whichever is the greater.
        of Liability has been exhausted by payment of
        judgments or settlements;
                                                                   3. EXCLUSIONS
2.2.6   if a payment exceeding the Limit of Liability has to
                                                                   This Policy does not cover liability in respect of:
        be made to dispose of a claim, or legal action, QBE’s
        liability to pay any costs, expenses and interest under    3.1      Aircraft, Aircraft Products,
        section 2.2 will be limited to that proportion of those             Hovercraft and Watercraft
        costs, expenses and interest as the Limit of Liability
                                                                            claims arising out of:
        bears to the amount paid to dispose of the claim.
                                                                   3.1.1    the ownership, maintenance, operation or use by
        The amounts thus incurred, except payments in
                                                                            You or on Your behalf of:
        settlement of claims, actions and all costs awarded
        against You, are payable by QBE in addition to the any Aircraft; or
        Limit of Liability up to a maximum aggregate liability any Watercraft exceeding 10 metres in length, except
        of $5,000,000 during any one Period of Insurance.                   where such Watercraft are owned and operated by
                                                                            others and used by You for business entertainment; or
2.3     Limit of Liability
                                                          any Hovercraft.
2.3.1   QBE’s maximum liability in respect of any claim or
        any series of claims for Personal Injury or Property       3.1.2    Your Products that are Aircraft component parts used
        Damage caused by or arising out of one Occurrence                   for maintaining an Aircraft in flight or moving upon
        shall not exceed the Limit of Liability;                            the ground or used in the construction of an Aircraft
                                                                            hull or machinery which to Your knowledge are
2.3.2   QBE’s total aggregate liability during any one Period of
                                                                            incorporated in an Aircraft.
        Insurance for all claims arising out of Your Products
        shall not exceed the Limit of Liability.                   3.2      Asbestos

2.4     Cross Liability                                                     claims directly or indirectly caused by, contributed to
                                                                            by or arising from exposure to asbestos or materials
        Where more than one party comprises the Insured,
                                                                            containing asbestos.
        each of the parties will be considered as a separate
        and distinct entity and this Policy shall be considered    3.3      Assault and Battery
        as applying to each party in the same manner as if
                                                                            Personal Injury or Property Damage caused by or
        a separate policy had been issued to each of them.
                                                                            arising from assault and battery committed by You
        Provided that nothing in this clause will result in
                                                                            or at Your direction unless reasonably necessary for
        an increase of QBE’s Limit of Liability in respect
                                                                            the protection of persons or property.
        of any Occurrence or Period of Insurance.

                                                                                                                             Page 5
3.4      Contractors or Subcontractors                          3.6.4    liability imposed by the provisions of any Workers’
                                                                         Compensation legislation or any industrial award
         Personal Injury or Property Damage arising directly             or agreement or determination.
         or indirectly out of or caused by, contributed to by
         or arising from any act or omission of:                3.6.5    arising out of Employment Practices.

3.4.1    any contractor or subcontractor of Yours; or           3.6.6    Personal Injury to volunteers, labour hire staff,
                                                                         contractors, sub-contractors or employees of such
3.4.2    any contractor or subcontractor of any contractor
                                                                         contractors or sub-contractors performing work
         or subcontractor of Yours or any tier thereof;
                                                                         for You or on Your behalf.
3.4.3    any director, executive officer, employee or partner
         of any contractor or subcontractor (or any of their    3.7      Exports to the USA or Canada
         contractors or subcontractors) of Yours or any                  Personal Injury or Property Damage caused by or
         tier thereof.                                                   arising out of Your Products knowingly exported by
                                                                         You, or Your agents or servants, to the United States
         For the avoidance of doubt, this Exclusion does not
                                                                         of America or Canada.
         apply to You for Your own liability for any act or
         omission of any contractor, subcontractor or any       3.8      Faulty Workmanship
         other person or entity in 3.4.1, 3.4.2 and/or 3.4.3
         above in their performance of work for You.                     Property Damage to that part of any property
                                                                         upon which You are or have been working where
3.5      Contractual Liability                                           the Property Damage arises from Your work or the
                                                                         cost of performing, correcting or improving any
         any obligation assumed by You under any agreement
                                                                         work undertaken by You.
         or contract except to the extent that:

3.5.1    the liability would have been implied by law;          3.9      Fines, Penalties or Liquidated Damages

3.5.2    the liability arises from a provision in a contract             Fines, penalties or liquidated damages.
         for lease of real or personal property other than a
         provision which obliges You to effect insurance or     3.10     Information Technology, Computer Data,
                                                                         Program and Storage Media
         provide indemnity in respect of the subject matter
         of that contract;                                      3.10.1   Personal Injury or Property Damage arising directly
                                                                         or indirectly out of or in any way involving Your
3.5.3    the liability is assumed by You under Your warranty
                                                                         Internet Operations.
         of fitness or quality as regards to Your Products;
                                                                         This Exclusion does not apply to Personal Injury or
3.5.4    the obligation is assumed under those agreements
                                                                         Property Damage arising out of any material which
         specified in the Schedule.
                                                                         is already in print by the manufacturer in support of
3.6      Employment Liability                                            its product, including but not limited to product use
                                                                         and safety instructions or warnings, and which is
3.6.1    Personal Injury to any of the Your Employees
                                                                         also reproduced on its site.
         arising out of or in the course of their employment
         in Your business.                                               This Exclusion also does not apply to liability which
                                                                         arises irrespective of the involvement of Your
3.6.2    Personal Injury to any person who is deemed to
                                                                         Internet Operations.
         be an Employee of You pursuant to any legislation
         relating to Workers’ Compensation.                              Nothing in this Exclusion shall be construed to
                                                                         extend coverage provided under this Policy to any
3.6.3    which You are entitled to seek indemnity under
                                                                         Liability which would not have been covered in the
         any policy of insurance required to be taken out
                                                                         absence of this Exclusion.
         pursuant to any legislation relating to Workers’
         Compensation, whether or not You are party to
         such contract of insurance.

Page 6
3.10.2   Property Damage to computer data or programs              3.13     Loss of Use
         and their storage media arising directly or indirectly
                                                                            loss of use of tangible property which has not been
         out of or caused by, through or in connection with:
                                                                            physically damaged, or physically lost or physically the use of computer hardware or software; or                       destroyed resulting from: the provision of computer or telecommunication            3.13.1   a delay in or lack of performance by or on Your
         services by You or on Your behalf; or                              behalf of any agreement; the use of computer hardware or software                  3.13.2   the failure of Your Products to meet the level of
         belonging to any third party, whether authorised                   performance, quality, fitness or durability expressed
         or unauthorised including Property Damage                          or implied, warranted or represented by You, but this
         caused by any computer virus.                                      Exclusion does not apply to the loss of use of other
                                                                            tangible property resulting from the sudden and
3.11     Jurisdiction
                                                                            accidental physical damage to, or physical loss
3.11.1   claims made and actions instituted within the United               or physical destruction of Your Products after
         States of America or Canada or any other territory                 they have been put to use by any person or
         coming within the jurisdiction of the courts of the                organisation other than You.
         United States of America or Canada.
                                                                   3.14     Participant to Participant
3.11.2   Claims and actions to which the laws of the
         United States of America or Canada apply.                          Personal Injury to any person arising out of the actual
                                                                            participation by that person in any of the sporting
         Provided that:
                                                                            activities (including but not limited to practice, trials,
3.11.3   Exclusions 3.11.1 and 3.11.2 do not apply to claims                training and competition) covered by this Policy.
         and actions arising from the presence of any of Your
                                                                            However, this Exclusion shall only apply where
         Employees’ and/or directors, partners or proprietors
                                                                            such Personal Injury is caused by another person
         resident outside the United States of America or
                                                                            (excluding coaches, referees and umpires) who
         Canada who is not undertaking manual work or
                                                                            is also participating in the same sporting activity.
         supervision of work of any kind whilst in the
         United States of America or Canada;                       3.15     Pollution
3.11.4   the Limit of Liability in respect of coverage provided    3.15.1   Personal Injury or Property Damage caused by
         under clause 3.11.3 is inclusive of all costs, expenses            or arising out of the discharge, dispersal, release,
         and interest as set out in clause 2.2 of this Policy.              seepage, migration or escape of Pollutants into or
                                                                            upon land, the atmosphere, or any water course or
3.12     Libel and Slander
                                                                            body of water, but this Exclusion does not apply if
         the publication or utterance of a libel or slander                 the discharge, dispersal, release or escape is sudden,
         or other defamatory or disparaging material:                       identifiable, unexpected and unintended and takes
3.12.1   made prior to the commencement of the Period                       place in its entirety at a specific time and place,
         of Insurance; or                                                   and which occurs outside of the United States
                                                                            of America or Canada.
3.12.2   made by You or at Your direction with knowledge
         of its falsity; or

3.12.3   related to publishing, advertising, broadcasting
         or telecasting activities conducted by You or
         on Your behalf.

                                                                                                                                  Page 7
3.15.2   any costs and expenses incurred in the prevention,          3.19     Property in Custody or Control
         removing, nullifying or clean-up of such
                                                                              Property Damage to:
         contamination or pollution but this Exclusion
         does not apply to clean-up, removal or nullifying           3.19.1   property owned by or leased or rented to You; or
         expenses only, which are consequent upon a sudden,          3.19.2   property in Your physical or legal control.
         identifiable, unexpected and unintended happening
                                                                              But this Exclusion does not apply to liability for
         taking place in its entirety at a specific time and place
                                                                              Property Damage to:
         which results in Personal Injury and/or Property
         Damage and which occurs outside of the United               3.19.3   premises (including landlord’s fixtures and fittings)
         States of America and Canada.                                        which are leased or rented to You;

3.15.3   the actual, alleged or threatened discharge, dispersal,     3.19.4   premises (or their contents) not owned, leased or
         release, seepage, migration or escape of Pollutants                  rented by You but temporarily occupied by You for
         caused by any Product that has been discarded,                       work therein;
         dumped, abandoned or thrown away by others.
                                                                     3.19.5   Vehicles (not belonging to or used by You) in Your
         QBE’s aggregate liability under clauses 3.15.1                       physical or legal control where the Property Damage
         and 3.15.2 for all discharges, dispersals, releases,                 occurs whilst such Vehicles are in a car park owned or
         seepage, migration or escape of Pollutants during                    operated by You, unless You own or operate the car
         any one Period of Insurance shall not exceed the                     park for reward;
         Limit of Liability.
                                                                     3.19.6   the property of an Employee of You designated in
3.16     Product Defect                                                       clause 1.23.1 or 1.23.2;

         Property Damage to Your Products if the damage is           3.19.7   property (excluding any Vehicle which is registered
         attributed to any defect in them or to their harmful                 or which is required under any legislation to be
         nature or unsuitability.                                             registered) in Your physical or legal control for the
                                                                              purpose of repair, service, maintenance or alteration
3.17     Product Recall                                                       or which is on temporary hire or loan to You,
                                                                              subject to a maximum indemnity of $50,000
         Claims arising out of or resulting from any loss,
                                                                              for any one Occurrence.
         cost or expense incurred by You for the loss of use,
         withdrawal, recall, inspection, repair, replacement,
                                                                     3.20     Punitive, Exemplary, Aggravated
         adjustment, removal or disposal of Your Products                     or Multiple Damages
         or of any property of which they form a part, if such
                                                                              punitive damages, exemplary damages, aggravated
         Products or property are withdrawn from the market
                                                                              damages and any additional damages resulting from
         or from use because of any known or suspected
                                                                              the multiplication of compensatory damages.
         defect, deficiency, inadequacy or dangerous
         condition in them.
                                                                     3.21     Radioactivity
3.18     Professional Liability                                               Personal Injury or Property Damage directly or
                                                                              indirectly caused by, contributing to or arising from:
         the rendering of or failure to render professional
         advice or service by You or any related error or            3.21.1   ionising radiations or contamination by radioactivity
         omission but this Exclusion does not apply to:                       from any nuclear fuel or from any nuclear waste from
                                                                              the Combustion of nuclear fuel. For the purpose of
3.18.1   the rendering of or the failure to render professional
                                                                              this Exclusion only, “Combustion” shall include any
         medical advice by Medical Persons employed by
                                                                              self-sustaining process of nuclear fission;
         You to provide first aid and other medical
         services on Your premises; or                               3.21.2   nuclear weapons material.

3.18.2   professional advice or service, in respect of
         Your Products, which is not given for a fee.

Page 8
3.22     Sexual Molestation                                         3.25.4   Property Damage arising out of and during the
                                                                             loading or unloading of goods to or from any Vehicle.
         Personal Injury or Property Damage arising from,
         contributed to by or in connection with sexual and/or      3.25.5   Property Damage caused by or arising from the
         child assault, abuse, molestation or attempt thereat.               operation or use of any Vehicle which is being used
                                                                             for lifting, lowering, loading or unloading, whilst
3.23     Terrorism                                                           being operated or used by You or on Your behalf
         Personal Injury or Property Damage of whatsoever                    within the confines of Your premises.
         nature directly or indirectly caused by, or resulting      3.25.6   Property Damage caused by the use of any tool
         from or in connection with any:                                     or plant forming part of or attached to or used in
3.23.1   Act of Terrorism regardless of any other cause or event             connection with any Vehicle (excluding whilst the
         contributing concurrently or in any other sequence to               Vehicle is travelling, transporting or carting goods)
         the Personal Injury or Property Damage; or                          at any work site.

3.23.2   action taken in controlling, preventing, suppressing       3.26     War
         or in any way relating to any Act of Terrorism.
                                                                             any consequence of war, invasion, act of foreign
3.24     Tobacco                                                             enemy, hostilities (whether war be declared or not),
                                                                             civil war, rebellion, revolution, insurrection, military
         Personal Injury arising directly or indirectly out of or
                                                                             or usurped power, or expropriation including lawful
         due to the inhalation or ingestion of, or exposure to:
                                                                             seizure, resumption, confiscation, nationalisation,
3.24.1   tobacco or tobacco smoke;                                           destruction or damage to property by or under the
                                                                             order of any Government or public or local authority.
3.24.2   any ingredient or additive present in any articles,
         items or goods which contain or include tobacco.
                                                                    4. CONDITIONS
3.25     Vehicles
                                                                    4.1      Acquisition of Properties or Companies
         Personal Injury or Property Damage arising out of
         the ownership, possession, operation, maintenance                   The indemnity granted by this Policy extends to
         or use by You or on Your behalf of any Vehicle:                     properties, assets, companies, firms, entities or
                                                                             other bodies:
3.25.1   which is registered or which is required under
         any legislation to be registered; or                       4.1.1    formed or acquired by You or of which You assume
                                                                             management responsibility during the Period of
3.25.2   in respect of which compulsory liability insurance
                                                                             Insurance; and
         or statutory indemnity is required by virtue of
         any legislation (whether or not that insurance             4.1.2    which undertake activities consistent with the
         is effected).                                                       description of the Business in the Schedule subject
                                                                             to disclosure to QBE prior to any new acquisition
         Exclusion 3.25.1 and 3.25.2 do not apply to:
                                                                             which represents more than 15% of the current group
3.25.3   Personal Injury where:                                              turnover in which event QBE may seek revised terms
                                                                             including but not limited to payment of additional that compulsory liability insurance or statutory
                                                                             Premium. You are not obliged to accept such terms,
         indemnity does not provide indemnity; and
                                                                             but if You do not, that new acquisition will not be the reason or reasons why that compulsory liability                 covered under this Policy.
         insurance or statutory indemnity does not provide
         indemnity do not involve a breach of legislation
         relating to Vehicles.

                                                                                                                                 Page 9
          Provided that:                                             4.3.3   When the Premium is subject to adjustment,
                                                                             under Clause 4.2.1, cancellation will not affect Your
4.1.3     no indemnity shall be granted in respect of claims
                                                                             obligation to supply to QBE such information as is
          for Personal Injury or Property Damage which first
                                                                             necessary to permit the Premium adjustment to be
          happened prior to the date of such acquisition,
                                                                             calculated and to pay the amount of the adjustment
          formation or assumption of management
                                                                             above the estimated Premium up to the date of
                                                                             cancellation. In accordance with Clause 4.3.4,
4.1.4     where existing insurance applies to the acquired                   You will not be entitled to a refund of any
          properties, companies, firms, corporations, entities               Premium below the estimated Premium.
          or other bodies over which You exercise management
                                                                     4.3.4   If this Policy is cancelled by either You or QBE,
          responsibility, this Policy will indemnify You for any
                                                                             QBE will not refund any Premium for the unexpired
          difference in conditions and Limit of Liability, until
                                                                             portion and You have no right to, part or all of
          expiry or cessation of such existing insurance.
                                                                             the Premium.
4.2       Adjustment of Premium
                                                                     4.4     Claims
4.2.1     If the first or renewal Premium for the Policy
                                                                     4.4.1   You must not without QBE’s written consent
          has wholly or partly been calculated on estimates,
                                                                             make any admission, offer, promise or payment
          You must within 30 days after the expiry of each
                                                                             in connection with any Occurrence or claim and
          Period of Insurance provide to QBE such matters,
                                                                             QBE will be entitled to take over and conduct in
          particulars and information relevant to the policy
                                                                             Your name the defence or settlement of any claim.
          as QBE may reasonably require. The Premium for
          the Period of Insurance will then be adjusted and          4.4.2   You must use Your best endeavours to preserve
          any difference paid by or allowed to You as the                    all property, products, appliances and plant and
          case may be, provide that the adjusted Premium                     all other things which may assist in the investigation
          will not be less than the minimum Premium                          or defence of a claim or in the exercise of right
          specified in the Schedule.                                         of subrogation and so far as may be reasonably
                                                                             practicable, You must not without QBE’s written
4.2.2     You must keep a record of all matters, particulars
                                                                             consent carry out any alteration or repair until
          and information requested by QBE and must on
                                                                             QBE has had an opportunity of inspection.
          reasonable notice allow QBE or QBE’s nominee
          to inspect and make copies of those records.               4.4.3   QBE will have full discretion in the conduct of any
                                                                             proceedings in connection with any claim and You
4.2.3     QBE may, in its absolute discretion, charge additional
                                                                             must give all information and assistance as QBE may
          Premium for what it considers to be an increase in
                                                                             require in the prosecution, defence or settlement of
          risk in respect of facts of circumstances which are or
                                                                             any claim.
          should be notified under Clause or it may, in
          its absolute discretion, cancel the Policy in accordance
                                                                     4.5     Discharge of Liabilities
          with Clause 4.3.2.
                                                                             QBE may at any time pay to You in respect of all
4.3       Cancellation                                                       claims against You arising from an Occurrence the
                                                                             balance of the Limit of Liability or any smaller sum
4.3.1     You may cancel this Policy by giving written notice
                                                                             for which the claim or claims can be settled and upon
          to QBE.
                                                                             that payment QBE will relinquish conduct or control
4.3.2     QBE may cancel this Policy in any of the circumstances             of and be under no further liability under this Policy
          set out in the Insurance Contracts Act 1984.                       in connection with those claims except for costs,
                                                                             charges and expenses:

Page 10
4.5.1   recoverable from You for all or part of the period         4.9.3    QBE may examine and audit Your books and records
        prior to the date of such payment;                                  at any time during the Period of Insurance and
                                                                            within three years thereafter but that examination
4.5.2   incurred by QBE;
                                                                            and audit will be restricted to matters which in
4.5.3   incurred by You with QBE’s written consent prior                    QBE’s opinion are relevant to the Policy.
        to the date of such payment.
                                                                   4.10     Insurance Contracts Act (1984)
4.6     Due Observance
                                                                            Nothing contained in this Policy is to be construed
        If You fail to comply with any provision of the Policy,             to reduce or waive either Your or QBE’s privileges,
        QBE may refuse to pay a claim, but in any event                     rights or remedies available under the Insurance
        QBE’s rights will be subject to Section 54 of the                   Contracts Act (1984).
        Insurance Contracts Act (1984).
                                                                   4.11     Notices
4.7     Goods and Services Tax (GST)
                                                                   4.11.1   You must as soon as possible give to QBE notice in
        GST and Input Tax Credit have the same meaning                      writing of:
        as given to those expressions in A New Tax System
                                                          every Occurrence, claim, writ, summons, proceeding,
        (Goods and Services Tax) Act (1999) and related
                                                                            impending prosecution and inquest together with
        legislation as amended from time to time.
                                                                            all relevant information which may result in a claim
        Taxable Percentage is Your entitlement to an Input                  under this Policy, whether or not You believe any
        Tax Credit on Your Premium as a percentage of the                   claim amount might fall below the applicable
        total GST on that Premium.                                          Deductible;
        Where QBE pay a claim and You have paid an        every change (including anything done or not
        amount for GST on acquisitions in connection                        done by You) that comes to Your knowledge which
        with Your claim, QBE will cover You for that GST,                   materially varies any of the facts or circumstances
        less any input Tax Credit You may be able to claim                  existing at the commencement of this Policy. QBE
        for Your acquisitions. This amount is included in the               may, in its discretion, for what it considers to be an
        Limit of Liability shown on the Schedule. This is the               increase in the risk, charge additional Premium,
        maximum amount QBE will pay inclusive of GST.                       amend or impose additional terms or conditions
        You must advise us of Your correct Taxable                          or cancel the Policy.
        Percentage. Any GST liability arising from Your            4.11.2   Any notice given in writing by QBE to the first named
        incorrect advice is payable by You.                                 Insured specified in the Schedule will be treated as
                                                                            notice to each of the parties comprising the Insured.
4.8     Governing Law
                                                                            Service of notices by QBE will be effective
        All disputes arising out of or under this Policy will be
                                                                            immediately on receipt by the first named Insured
        subject to determination by any Court of competent
                                                                            of a letter or electronic communication sent by
        jurisdiction within Australia.
                                                                            QBE or in the case of notices by post, three business
4.9     Inspection of Property                                              days after having been posted by QBE.

4.9.1   QBE will be permitted but not obligated to inspect
        Your property and operations at any time.

4.9.2   Neither QBE’s right to inspect nor QBE’s failure
        to inspect nor the making of any inspection nor
        any report of an inspection may be used by You or
        others in any action or proceeding involving QBE.

                                                                                                                             Page 11
4.12      Other Insurance                                    safety of persons or property;

          As soon as is reasonably practical but in any case disposal of waste products;
          within 15 days after entering into any other contract
                                                             handling, storage or use of flammable liquids
          of insurance, You must notify QBE of, and give QBE
                                                                                or substances, gases or toxic chemicals;
          full details of, any other insurance which provides
          indemnity, in full or in part, for any of the liabilities   4.16.3    at Your own expense take reasonable action to trace,
          insured under this Policy.                                            recall or modify any of Your Products containing any
                                                                                defect or deficiency of which You have knowledge or
4.13      Payment of Premium                                                    have reason to suspect, including (but not limited to)
                                                                                any of Your Products subject to governmental or
          You will pay promptly to QBE the premium, any
                                                                                statutory ban.
          adjustments of premium, any amount on account of
          GST and other amounts charged for this Policy and
                                                                      4.17      Subrogation
          any renewal, extension or endorsement to the Policy.
                                                                                QBE may prosecute in Your name for damages or
4.14      Preventing QBE’s Right of Recovery                                    otherwise. QBE may do this before or after QBE have
                                                                                paid Your claim and whether or not You have been
          If You have agreed not to seek compensation from
                                                                                fully compensated for Your actual loss. You must
          another person who is liable to compensate You for
                                                                                execute and deliver instruments and papers and
          any loss, damage or liability, which is covered by this
                                                                                do everything that is necessary to assist QBE in
          Policy, QBE will not cover You under this Policy for
                                                                                the exercise of those rights.
          that loss, damage or liability.

4.15      Payment of Deductible                                       QBE’S PRIVACY PROMISE
          You will pay to QBE the amount of the Deductible            QBE are committed to safeguarding privacy and the
          which You must bear in relation to each Occurrence,         confidentiality of personal information. QBE will only
          within 14 days of receiving a request from QBE to pay       collect personal information from You, which is relevant
          Your Deductible. Indemnity provided by Clause 2.            to Your application for insurance or Your insurance policy,
          Coverage will not be available until such time as the       including claims made by You and use it in a way You would
          Deductible has been paid.                                   reasonably expect.

4.16      Reasonable Care                                             When QBE collect information about Your business that
                                                                      identifies an individual, it becomes personal information
          You must:                                                   and subject to the Privacy Act. Without this personal
4.16.1    exercise reasonable care that only competent                information QBE may not be able to issue insurance
          Employees are employed and take reasonable                  cover or process Your claim.
          measures to maintain all premises, fittings and             QBE or QBE’s authorised agent, may disclose personal
          plant in sound condition;                                   information collected from You:
4.16.2    take all reasonable precautions to prevent Personal
                                                                      •   To an investigator, assessor, surveyor, accountant, repairer,
          Injury and Property Damage and prevent the                      supplier, health service provider, Your broker or State or
          manufacture, sale or supply of defective Products,              Federal Authority (for the purpose of investigating,
          and comply with and ensure that Your Employees,                 assessing or processing Your claim);
          servants and agents comply with all statutory
          obligations, by-laws or regulations imposed
          by all relevant public authorities for the:

Page 12
•   To a lawyer or recovery agent (for the purpose of defending
    an action by a third party against You or for the purpose
    of recovering QBE’s costs including Your Deductible or for
    the drafting of policy wording or documentation);

•   To another insurer (for the purpose of seeking recovery
    from them or to assist them to assess insurance risks)
    or a reinsurer or reinsurance broker;

•   To an insurance reference bureau (for the purpose of
    recording any claims You make upon Us);

•   To a witness or another party in a claim (for the purpose
    of obtaining a statement from them or seeking recovery
    from them or to defend an action by a third party).

Personal information may also be obtained from the above
people or organisations relating to Your insurance. QBE may
also obtain personal information when obtaining financial
or credit information from commercial credit reporting
organisations or financial institutions.

In addition QBE will:

•   Give the individual the opportunity to correct
    their personal information, or obtain access to it
    (some restrictions and costs may apply);

•   Provide QBE’s dispute resolution procedures to the
    individual in respect of any complaint they may have
    regarding their personal information.

Where You name a person as a partner, director, officer,
employee or other position as required on QBE’s proposal
form, QBE will rely on You having informed those people
that You will be providing their names, positions, professional
body membership or other personal information to QBE.

QBE would appreciate it if You would provide a copy of
this Privacy Promise to any person whose information has
been provided to QBE by You for the purpose of obtaining
Corporate Liability insurance cover.

Further information can be obtained by contacting
QBE’s Compliance Manager by:

Telephone: 02 9375 4656
Fax: 02 9221 1330
or e-mail:

                                                                  Page 13
SYDNEY                    MELBOURNE               BRISBANE
Phone: (02) 9375 4444     Phone: (03) 9246 2444   Phone: (07) 3215 8433
Fax: (02) 9375 4988       Fax: (03) 9246 2112     Fax: (07) 3215 8426
Level 5, 82 Pitt Street   628 Bourke Street       133 Mary Street
Sydney NSW 2000           Melbourne VIC 3000      Brisbane QLD 4000

                                                                          L401 671 (10/03) 4K OI

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