Back in Business Policy Module

Welcome to AA Insurance

Thank you for choosing AA Insurance. When you need us, we’ll get things sorted for you.

This policy document explains your insurance cover, your responsibilities and how to make a claim. Please read it carefully and keep it in a safe place. 

How to contact us

For sales, service and general queries:

  • Call us on 0800 500 213


For claims enquiries:

  • Call us on 0800 500 216

Your insurance contact

Your insurance contract consists of this policy document and your policy schedule. Your policy document and policy schedule are designed to be read together. If there is a conflict between the information in this policy document and your policy schedule, your policy schedule takes priority.

This cover is subject to the limits, terms and conditions which are set out within this policy document. We agree to provide this cover as long as you have paid the premium due.

If you have any questions or need more information, please contact us.

If you have a concern

We value our customers and aim to deliver the best service possible. We also appreciate and encourage your feedback – the good and the bad. If you’re not satisfied with one of our policies, our service or a decision we make, please tell us. Often a quick conversation with one of our representatives can help resolve things.

If we can’t agree or if you are still unhappy, please let us know. We can explain our complaints procedure to you and we have a Customer Resolution Service in place to assist you if needed.  

Reading your policy

Headings

Headings in this policy document are there to help guide you. You shouldn’t rely on headings to interpret the policy. To understand your policy, the full text should be read.

Words with specific meaning

We have coloured some words blue. These words have a specific meaning and are explained in the ‘Definitions’ section at the end of this policy document.

We also use the following common terms throughout this policy document which have the below meanings:

  • ‘we’, ‘us’ or ‘our’ means AA Insurance Limited
  • ‘you’ or ‘your’ means the insured and any other persons insured.

Cancelling your policy

If you change your mind

We provide you with a 21 day cooling-off period. You can cancel your policy within 21 days from the day cover began, provided you have not made a claim. We will then refund in full any premium you have paid.

Cancellation by you

You may cancel your policy at any time, unless you have made a claim. If you cancel outside the cooling-off period and you have not made a claim, we will refund you any amount we owe after the cancellation date, less any cancellation fee shown on your policy schedule.  

Cancellation by us

We may cancel your policy at any time by sending you a notice to this effect. The cancellation will take effect on the 7th day after the notice has been sent. We will refund you any amount we owe after the cancellation date.

What you are covered for

We will cover you for your loss if your business is interrupted or interfered with as a result of damage at the premises during the period of insurance.

However, in order for there to be cover under this module:

  • your property damaged at the premises must be insured under a ‘Business Contents and Stock’, or ‘Portable Contents and Stock’ module with us, and
  • we must have accepted your claim for the damage under a ‘Business Contents and Stock’, or ‘Portable Contents and Stock’ module.

The insured items

If you have chosen to include the following items they will be shown on your policy schedule

Item 1 - Gross profit

We will cover you for loss of gross profit due to:

  • reduction in turnover, and
  • increase in cost of working.

The most we will pay for reduction in turnover is the sum produced by applying the rate of gross profit to the amount by which the turnover during the indemnity period in consequence of the damage falls short of the standard turnover.

The most we will pay for the increase in cost of working is the additional expenditure (subject to the provisions of Memo 2 below) necessarily and reasonably incurred for the sole purpose of avoiding or diminishing the reduction in turnover that, but for that expenditure, would have taken place during the indemnity period in consequence of the damage, but not exceeding the sum produced by applying the rate of gross profit to the amount of the reduction thereby avoided.

The amount we pay in either case will be reduced by any sum saved during the indemnity period in respect of such of the charges and expenses of your business payable out of gross profit as may cease or be reduced in consequence of the damage.

Memo 1: If during the indemnity period goods are sold or services are rendered elsewhere than at the premises for the benefit of your business either by you or by others on your behalf the money paid or payable in respect of such sales or services will be brought into account in arriving at the turnover during the indemnity period.

Memo 2: If this policy does not insure any charges or expenses of your business (having been deducted in arriving at the gross profit as defined) then the increase in cost of working calculation will use that proportion only of the additional expenditure which the gross profit bears to the sum of the gross profit and all such uninsured charges and expenses.

Item 2 - Additional increased cost of working

We will cover you for the additional expenditure beyond that recoverable under any other item of this policy reasonably incurred by you during the indemnity period as a result of the damage to avoid or diminish a reduction in turnover or to resume or maintain normal business operations.

This item does not include:

  • any portion of the above costs that would have been recoverable under Item 1 but for the inadequacy of the Sum Insured under that item, other than where Item 1 is not insured, or
  • costs of reinstating damage.

Item 3 - Reinstatement of records

We will cover you for the clerical, legal and other charges reasonably incurred by you during the indemnity period as a result of the damage for the replacement or restoration of business records.

We will also cover the above while anywhere in New Zealand. However, the most we will pay is 10% of the applicable item shown on your policy schedule for this item.

Item 4 - Claim preparation costs

We will cover you for reasonable fees as may be payable by you to a chartered accountant, solicitor or other professional consultant and reasonable costs incurred by your staff for quantification, but not negotiation of claims under this policy.

The most we will pay is the applicable item Sum Insured shown on your policy schedule for this item.

Limits on what we will pay

The most we will pay is the total of the Sums Insured, or any Sum Insured or limit applicable to any insured item and/or premises.

Reinstatement of amount of insurance

Where a claim is accepted under this module, the amount of cover available for future claims will be automatically reinstated from the date of loss. However, before any amount of your cover is reinstated following loss you must pay any additional premium that we may charge.

This does not apply in respect of any natural disaster damage.

If your claim is for natural disaster

The most we will pay for natural disaster damage in any one period of insurance is the total Sum Insured for natural disaster. Where more than one premises or item is included in your policy schedule the most we will pay is the natural disaster Sum Insured in respect of each premises or item.

Any one event, or a series of events arising from any one cause during any period of 72 consecutive hours, for each natural disaster loss, or series of losses will be adjusted separately net of salvage and other recoveries for each premises.

Automatic extensions

The following extensions are automatically included in your cover.

Contingent business interruption

We will cover you for loss in respect of each item insured under this module resulting from interruption or interference with your business caused by any of the circumstances listed below.

The most we will pay in respect of:

  • any one loss caused by the circumstances below, and
  • all losses caused by one or more of the circumstances below arising out of any one event, source or originating cause;

will not exceed 10% of the Sum Insured or limit applicable to any item and/or premises or $1,000,000 in total, whichever is the lesser.

For any claim under this extension, except for a claim under ‘Closure of transport routes’, and a claim arising out of natural disaster, we will not pay for the first 24 hours of your loss. This 24 hour period commences from the first day a loss would otherwise become payable under this extension.

Where there is loss arising out of natural disaster cover is available under this extension only if you have selected the ‘Additional extension – Natural disaster’.

For any claim arising from natural disaster, we will not pay for the first 21 days of your loss. This 21 day period commences from the first day a loss would otherwise become payable under this extension.

The indemnity period applying to any claim under this extension begins at the expiry of the number of days specified in this extension as the period we will not pay for your loss, not at the occurrence of the damage.

Customers' and suppliers' premises

We will cover you for loss arising from damage within New Zealand at any:

  • premises from where you are directly supplied with goods or services, or
  • premises of any of your direct customers,

provided that we would have paid a loss if the damage had been to your own property.

We will not cover you for any amount where the damage is to the property of any customer or supplier that receives from or sends to the premises electricity, gas, natural gas, water, sewage or telecommunications.

Where any loss is covered under both ‘Customers’ and suppliers’ premises’ and ‘Utilities and services’, only ‘Utilities and services’ will apply.

Prevention of access

We will cover you for loss arising from damage to property within a ten kilometre radius of the premises that prevents or hinders access to or use of the premises. This cover applies whether the premises or property are damaged or not.

Business that attracts customers

We will cover you for loss where the premises is in a retail shopping complex, and damage at the complex causes a major tenant whose business attracts customers for your business to temporarily cease business, provided that we would have paid a loss if the damage had been to your own property.

The indemnity period is limited to 30 days.

Public authorities

We will cover you for loss arising from the closure of the whole or part of the premises shown in your policy schedule by order of a competent public authority as a result of any of the following:

  • personal injury to any person on or close to the premises
  • damage to any property
  • defects in drains or other sanitary arrangements, but not defects, contaminants or imperfections or inferiority of water or sewage
  • vermin or pests
  • fumes or escape of any hazardous materials

but not a closure as a result of any infectious animal or human disease, or as a result of any event or circumstances for which you are responsible.

For the purposes of a claim under this extension, such closure of the whole or part of the premises will be deemed to be damage under this module.

Utilities and services

We will cover you for loss arising from damage to any of the following:

  • electricity station or sub-station or power lines
  • gas works or natural gas works or gas storage facilities of any gas distributor and any pipe lines of any supply authority (but excluding the Maui and any other off-shore installations and the Kapuni installation)
  • waterworks or water treatment plants and any pipe lines of any public supply authority
  • sewerage works or sewerage treatment plants and any pipe lines of any public supply authority
  • telecommunication lines or cables that are directly connected to the premises

from which you receive or send electricity, gas, natural gas, water, sewage or telecommunications.

Where any loss is covered under both ‘Customers’ and suppliers’ premises’ and ‘Utilities and services’, only ‘Utilities and services’ will apply.

Closure of transport routes

We will cover you for loss where any:

  • transport route, port or airport, or
  • port building, wharf or railway warehouse or airport building and/or their contents,

anywhere in New Zealand is damaged or is closed by order of a competent public authority as a result of property damage.

For any claim other than one arising out of natural disaster, we will not pay for the first seven days of your loss. This seven day period commences from the first day a loss would otherwise become payable under this extension.

Accumulated stock

Where the indemnity period is 12 months or more then in adjusting any claim an allowance will be made if, during the indemnity period, turnover is temporarily maintained from accumulated stocks held by you.

Additional premises

We will cover you for loss arising out of interruption of or interference with your business as a result of damage to property at additional premises in New Zealand that you use or acquire for the purposes of your business. This loss will be considered as loss arising out of damage to property used by you at the premises provided that:

  • separate business interruption insurance in respect of such premises has not been arranged, and
  • we are given notice of the addition of such premises within a reasonable period.

Departments

If your business is conducted in departments and independent trading results are ascertainable this module will apply separately to each department affected by the damage.

Electric motors

We will cover you for loss arising out of interruption of or interference with your business as a result of damage to:

  • electric motors and starters that do not individually exceed 3.75kW (5hp), and
  • distribution switchboards and permanently installed electrical reticulation 

directly caused by failure of electrical insulation, or abnormal electric current, or electrically induced self-heating and while located at the premises.

This extension does not apply where the damage is to refrigeration machinery.

First aids costs

We will cover you for first aid costs you incur at the time of an event during the period of insurance which gives rise to damage, and which is not otherwise covered by entitlements under the Accident Compensation Act 2001.

Deferral of indemnity period

You may defer the date on which the indemnity period begins if:

  • you notify us within three months of the date of the damage that you have elected to defer the commencement of the indemnity period, and
  • we have not already paid or agreed to pay a claim for any insured item or interest in consequence of that damage (other than for Item 3 ‘Reinstatement of records’, or Item 4 ‘Claim preparation costs’).

The deferred indemnity period must begin within the number of months shown in your policy schedule as the indemnity period, or 12 months from the date of the damage whichever is the earlier, otherwise this option to defer expires.

If you defer the commencement of the indemnity period as described above, then:

  • you must notify us as soon as possible of the date on which you want the indemnity period to commence, and no later than one month after the date on which the deferred indemnity period commences
  • the amount payable under this module for all insured items or interests as a result of the damage will be calculated on the basis that references in the policy to the date of the damage are deemed to be references to the date of the commencement of the indemnity period. The standard adjustments will apply such that the final adjusted figures will represent as nearly as may be reasonably practicable the results that would have been obtained during the deferred indemnity period but for the damage
  • if prior to or during the indemnity period goods are sold or services are rendered elsewhere than at the premises for the benefit of your business either by you or by others on your behalf the money paid or payable in respect of such sales or services will be brought into account in arriving at the turnover during the indemnity period
  • if in consequence of the damage there is an increase in turnover prior to the commencement of the indemnity period, the amount of the increase will be subtracted from the reduction in turnover during the indemnity period.

Once the deferred indemnity period commences, there will be no further right of deferral of the indemnity period applicable to a claim for any insured item or interest as a result of that damage.

Additional extension

If you have chosen to include the following extension, it will be shown on your policy schedule.

Natural disaster

The word damage as defined in this module extends to include natural disaster damage.

Making a claim

This section explains what you need to do when you make a claim.

Claim conditions

You must co-operate with us and give us any information or help we ask for in relation to your claim.

As soon as you are aware of an event, circumstance or occurrence, you must comply with the following conditions:

  • take all reasonable steps to minimise the loss and prevent further loss or damage
  • tell the police in the case of theft, burglary, vandalism or arson, or the attempt at these
  • do not admit responsibility for any loss, damage or liability
  • do not, without our consent, incur any expense or negotiate pay, settle, or make any agreement in relation to any claim.

As soon as possible you must also:

  • tell us of the event and give full details and circumstances of what has happened, including details of everyone involved
  • send us all relevant communications which you receive
  • obtain our permission before you incur any expense, other than the reasonable cost of urgent work to prevent further loss or damage
  • keep damaged property for our inspection and let us inspect any building or other property where loss or damage has occurred
  • provide a detailed description of the lost, damaged or stolen items, proof of ownership and any other information or evidence that we may require
  • let us at our expense and in your name to take any action necessary against any other party and to take over and conduct the defence and settlement of any claim against you
  • provide all reasonable assistance and co-operate with us and our assessors, investigators, lawyers or anyone else we appoint to assist, in the making of your claim, its settlement and any defence of a potential claim against you or any action against anyone else.

If you do not comply with these conditions

If you do not comply with any of these conditions, we can:

  • decline your claim
  • recover from you what we have already paid.

After your claim is accepted

If any person, company or entity is ordered to make or otherwise makes reparation to you for damage for which we have paid a claim under this policy you must reimburse us for that payment as soon as any reparation is made, subject to adjustment if you have not been fully indemnified.

You will have to pay an excess

An excess is the amount you must pay for each individual event. We may deduct your excess from the total settlement amount. 

The total excess is determined by the circumstances of your claim. You might have to pay more than one type of excess when you make a claim. The excesses will be noted in this policy document and/or in your policy schedule.

If you claim under more than one policy with us for loss, damage, or liability caused by a single event or occurrence at the same location, you will only have to pay one excess. This will be the highest total applicable excess. This does not apply to any loss caused by natural disaster damage.

A series of events arising from any one cause during any period of 72 consecutive hours will be treated as one event for the purposes of determining the excess you need to pay.

How we will settle your claim

Payment on account

We will make payments on account to you during the indemnity period where you produce a statement of claim that is certified by a charted accountant who is appointed by both you and us.

Salvage sale

If, following damage giving rise to a claim under this policy, you hold a salvage sale during the indemnity period, we will reduce the amount we pay by the turnover during the period of the salvage sale.

Alternative index

Adjustments may be based on “turnover” or “output” or whatever other index of business activity we consider affords the most equitable result.

What you are not covered for

This section explains what your policy does not cover. These exclusions apply to all sections of this policy.

Faulty workmanship design or materials

This policy does not cover damage caused by the work of putting right any of the following:

  • repairing or replacing faulty materials
  • faulty workmanship
  • work performed to a faulty or defective design, plan or design specification
  • faulty or defective work where the fault or defect results from an error or omission in design, plan or design specification.

Criminal acts and disappearance

This policy does not cover loss resulting from any of the following:

  • theft by you or any of your employees
  • theft unless accompanied by forcible entry to or exit from any enclosed building
  • any fraudulent scheme or device or false pretence practised on you or on any other person having care of property insured under this policy
  • unexplained disappearances
  • shortages revealed only by the taking of an inventory
  • shortages due to clerical or accounting errors.

Damage to machinery

This policy does not cover damage in respect of a machine or pressure vessel caused by:

  • the explosion, overheating, rupture, bursting, cracking, leakage, collapse, of steam boilers, or pipes, or economisers, or any other pressure vessel, due in each case to generated or applied fluid pressure within or without (excluding pressure caused by chemical explosion), or
  • mechanical or electrical breakdown or derangement of any machine or pressure vessel except where cover is provided under Automatic extension – ‘Electric motors’.

Moisture penetration

This policy does not cover damage in connection with the failure of any building or structure to contain or incorporate:

  • materials, or
  • a design, or
  • a system, or
  • a standard of workmanship,

that effectively prevents or manages the presence or penetration of moisture or water to which the building or structure might reasonably be subjected.

Types of property not covered

This policy does not cover damage to any of the following:

  • property undergoing installation, construction, demolition, erection, or testing following any of them
  • money
  • jewellery, precious stones, furs, precious metals or bullion, other than as stock of the business or as part of any plant
  • motor vehicles, other mechanically or electrically propelled vehicles (including but not limited to railway locomotives and rolling stock), watercraft and aircraft of every kind, and accessories contained in them or on them, other than as stock of the business
  • standing timber, growing crops, pastures, livestock, trees, hedges, dams, canals, reservoirs (but not tanks), road or railway tunnels, road or railway bridges, decks, piers, wharves, mining property located beneath the surface of the ground, any land including topsoil and backfill
  • property in transit other than at premises you own or occupy
  • property damaged as a result of it undergoing any process of producing, making, treating or servicing goods where the damage is directly caused by the normal operation of that process
  • refrigeration machinery.

Computer virus and data corruption

This policy does not cover damage directly or indirectly caused by or resulting from any of the following:

  • the gaining of access to your computer system via data communication media that terminate in your computer system
  • data corruption, amendment of data or erasure of data by electronic or non-electronic means
  • computer virus, being an executable programme or computer code segment that is self-replicating (or requires a host programme to replicate itself), requires a host programme or executable disc segment in which it can be contained, and which destroys or alters the host programme or other computer code or data, causing undesired programme or computer system operation.

Consequential loss or incurred costs

This policy does not cover any of the following (except as expressly included by this policy):

  • consequential losses of any kind
  • costs or expenses you may incur in order for you to prove or assist us with your claim
  • loss of interest.

Natural events

This policy does not cover loss arising out of damage directly or indirectly caused by or resulting from any of the following:

  • action or effects of micro-organisms, mildew or rot, other than direct damage by fire as a result of any of these
  • normal settlement, shrinkage or expansion of buildings, foundations, walls, pavements, roads and other structural improvements
  • natural disaster, unless you have chosen the Additional extension – ‘Natural disaster’.

Other damages

This policy does not cover damage directly caused by:

  • fumes, gas, dust, smoke, soot
  • normal working, maintenance, wear and tear, erosion, corrosion, slowly developing deformation or distortion, marring or scratching
  • action of vermin or insects
  • the inherent nature of the property
  • the action of light, atmospheric or climactic conditions
  • changes in artificially controlled temperature or atmosphere
  • exposure to weather conditions where the property is not normally left in the open unless reasonable precautions have been taken to protect the property from those conditions
  • interruption of the supply to the site of water, gas, electricity or any fuel
  • total or partial cessation of work, retarding or interruption or cessation of any process.

Excesses and other insurance

This policy does not cover your excess on this or any other policy.

This policy does not provide cover where cover is provided by other insurance or by a warranty or guarantee. We will not contribute towards any claim made under any other policy.

Pollution or contamination

This policy does not cover any loss, damage, personal injury, or liability caused by, arising from, or involving, pollution or contamination. This includes any contamination by the use, consumption, storage or manufacture of illegal drugs.

Confiscation

This policy does not cover any loss, damage, personal injury, liability or prosecution of any type directly or indirectly caused by, arising from, or involving confiscation, nationalisation, requisition or destruction of, or damage to property by order of government, public or local authority (unless the order is given to control any loss or damage that is covered by this policy).

War, terrorism or nuclear incidents

This policy does not cover any loss, damage, personal injury, liability or prosecution of any type directly or indirectly caused by, arising from or involving:

  • war, invasion, act of foreign enemy, hostilities, civil war or warlike operations (whether war is declared or not)
  • mutiny, civil commotion assuming proportions of or amounting to a popular uprising, military uprising, rebellion, revolution, insurrection, military or usurped power
  • any act, including but not limited to the threat, or use of violence, which from its nature and context is done for, or in connection with, political, religious, ideological, ethnic, or similar purposes including the intention to influence any government and/or to put the public or any member of the public in fear
  • nuclear weapons, ionising radiations, or contamination by radioactivity from nuclear fuel or the combustion of waste from nuclear fuel.

Unlawful or otherwise prohibited to insure

This policy does not cover any loss, damage, personal injury, liability or prosecution, directly or indirectly caused by, or arising from any act, event, occurrence or thing against which insurance is either:

  • unlawful, or
  • prohibited by any sanction, prohibition or restriction under the laws or regulations of any jurisdiction applicable to us or our parent company or its ultimate controlling entity.

You must tell us about certain things

Some parts of this policy may cover other people or companies or entities as well as you. To gain the benefit of any cover under this policy they must meet all the same conditions and obligations you are required to meet.  No claim will be payable where any person covered under this policy does not meet any of the terms and conditions.

Nothing in this policy affects the common law rights of either party, including our right to avoid your policy for non-disclosure. This means your policy will be treated as if it never existed and any claim payments must be returned to us.

You must disclose material information and give us full and accurate statements

Your policy with us relies on the accuracy of the information supplied by you, or any person on your behalf. You must advise us of all material information before the start of this policy and before each renewal or variation of the policy.

You must also give us full and accurate information and answer honestly, correctly and completely all questions we ask you. Failure to do so entitles us to deny any claim and to cancel this and any other policy you have with us from the date the information should have been provided. 

Alteration of risk

Unless we agree otherwise in writing, your cover will cease if, for any reason other than damage:

  • your business is wound up or carried on by a liquidator or receiver or is permanently discontinued, or
  • your interest in your business ceases otherwise than by death, or
  • with your knowledge any alteration is made, either to your business or to the premises or property in your business, whereby the risk of damage is increased.

However, your cover will not be prejudiced by:

  • such change in the use or occupancy of premises as are usual or incidental to your business, or
  • the performance of any structural alterations or repairs to property at the premises,

providing the circumstances are reported to us within a reasonable time after you become aware of them and you agree to pay an additional premium for the increased risk if required.

You must tell us if there is a change of circumstances

You must tell us immediately of any change in circumstances that have happened after the start of this policy or that you know is going to happen and which may increase any of the following:

  • the amount of the risk
  • the risk of loss, damage, or liability
  • the risk of insuring you.

As a result of these changes in circumstances, or if you fail to tell us immediately of any change in circumstances, we may:

  • change your policy terms and make alterations to your premium
  • reduce cover or change limits
  • not insure you for any loss, damage or liability that happens after the date of the change in circumstances
  • cancel your policy.

Misdescription

Your cover will not be prejudiced by:

  • any innocent and inadvertent misdescription of the business in the proposal or submission, or
  • any act whereby the risk of loss is increased without your authority or knowledge,

provided you notify us immediately on becoming aware of any of the above happenings. However, we may require you to pay an additional premium if the risk of loss has changed as a result.

Adjustment of premium: Item 1 - Gross profit

The premium for ‘Item 1 – Gross profit’ is provisional and you must tell us the actual insured gross profit for the period of insurance within three months of the end of each period of insurance for us to calculate your final premium.

The premium will be adjusted as follows:

  • we will recalculate the provisional premium using the actual amounts, or a multiple of such amounts if the indemnity period exceeds 12 months
  • in the event of a claim occurring during the period of insurance the amount paid or payable by us for the loss in respect of the period will be regarded as gross profit earned by you.

Any difference between the provisional and the final premiums will either be payable to us as an additional premium, or as a refund of premium to you, however, any refund of premium to you will not exceed 50% of the provisional premiums charged.

If you do not tell us the actual figures within three months, we will consider the premium to be final and no adjustments will be made.

You must comply with certain conditions

You must avoid loss, damage or liability

You must take all reasonable care to avoid doing anything that could result in a claim, and at your cost and expense, must take reasonable steps to:

  • ensure all property covered by this insurance is kept safe and protected from possible loss or damage
  • maintain any protective devices, including but not limited to, sprinkler systems and alarms, in an operational condition
  • keep closed during non-working hours any fire resisting doors and shutters and maintain them in efficient working order
  • maintain any security protection in efficient operating order and activate it during non-working hours
  • avoid any loss, damage or personal injury to any person or thing for which you could be held legally liable
  • comply with all legal requirements for the safety of people or property.
  • comply with all statutory, regulatory or local authority requirements pertaining to the ownership, occupation and use of property insured under this policy
  • keep any dangerous goods in accordance with the provisions of the Hazardous Substances and New Organisms Act 1996 and the Health and Safety at Work (Hazardous Substances) Regulations 2017.

You must not transfer your legal rights

You must not assign or transfer or attempt to assign or transfer this policy or your interest in this policy to any other party.

Building Act 2004 - compliance schedule

Where required under the Building Act 2004 you must ensure that all inspections, maintenance and reports are completed as required by the compliance schedule for any building for which interference or interruption following damage is insured. This module does not insure interference or interruption following any loss or damage directly or indirectly caused by or contributed to by circumstances that would not have existed at the time of the loss or damage if these requirements had been met.

How we administer your policy

Paying premiums

If your premium is overdue, we may refuse to make any claim payments until your overdue premiums have been paid.

If there is a change to your premium which remains unpaid, or you do not pay the full amount of your premium, we may reduce the period of insurance in line with the proportion of the unpaid premium.

If your premium remains unpaid for 28 days, your policy will automatically be terminated and you will not be sent a notice.

Sending notices

We will send any notice, policy schedule or other written documents to your last known physical, postal or email address.

Noting interested parties

By noting an Interested party on your policy schedule, you are authorising us to disclose your information to them. If your policy schedule shows an Interested party, we may partially or fully settle your claim by making a payment to them, fulfilling our obligations under this policy. Anyone noted as an Interested party is not covered by this policy and cannot make a claim under this policy.

You are jointly insured

All those listed as insured are jointly insured and are considered to act with the expressed authority of each other. This means that if anyone does or fails to do anything so that there is no cover, there will be no cover for any of the insureds.

Each insured has the right to:

  • make a change to the policy
  • make a claim under the policy
  • receive claim proceeds under the policy, and
  • cancel the policy.

Currency

All amounts referred to in your policy are expressed in New Zealand currency and include Goods and Services Tax (GST).  We will pay all claims in New Zealand currency.

Governing law

This policy is governed by New Zealand law, and the New Zealand courts have exclusive jurisdiction over any legal proceedings about it.

Definitions

Act

Any Act of the New Zealand parliament that is not an Excluded Act in force at the commencement of the period of insurance, or which comes into force during the period of insurance, and any substitution of, amendment to, replacement of or any regulation made under, such Act.

Any specific Act referred to also means any substitution of, amendment to, replacement of and any statutory regulation made under such Act.

Business

The business and occupation described in your policy schedule.

Damage

Sudden, unforeseen, accidental physical loss, or sudden, unforeseen, accidental physical damage.

Employee

Any of the following while working for any insured in connection with the business:

  • a person under a contract of service or apprenticeship with any insured
  • a person hired or borrowed by any insured
  • a labour only sub-contractor.

Event

A sudden, accidental and unforeseen occurrence that causes damage, or personal injury that is not intended or expected by you.

Excluded Acts

The following Acts of the New Zealand Parliament and any amendment to, re-enactment or substitution of, regulation of, or other subordinate legislation made under, such Acts:

  • Arms Act 1983
  • Aviation Crimes Act 1972
  • Commerce Act 1986
  • Crimes Act 1961
  • Criminal Investigations (Blood Samples) Act 1995
  • Hazardous Substances and New Organisms Act 1996 but only as it relates to new organisms
  • Misuse of Drugs Act 1975
  • Criminal Proceeds (Recovery) Act 2009
  • Summary Offences Act 1981
  • Land Transport Act 1998, or
  • any other Act shown in your policy schedule as an Excluded Act.

Gross profit

The amount by which the sum of the turnover and the amount of the closing stock will exceed the sum of the amount of the opening stock and the amount of the uninsured working expenses.

Note: The amount of the opening and closing stocks will be arrived at in accordance with your normal accounting methods, due provision being made for depreciation. The words and expressions used will have the meaning usually attached to them in your books and accounts including uninsured working expenses listed in your policy schedule.

Indemnity period

The indemnity period means the continuous period beginning with:

  • the date of occurrence of the damage; or
  • if you have elected Automatic extension – ‘Deferral of indemnity’, the date to which you have deferred the commencement of the indemnity period in accordance with the extension and ending not later than the expiry of the number of months shown in your policy schedule during which the results of the business are affected in consequence of the damage.

Insured

The person, company, or entity listed as ‘Who’s insured’ on your policy schedule domiciled in New Zealand.

Machine

Any contrivance for the conversion and direction of motion or energy, or for the performance of any electronic process, and includes any protective device in connection with that contrivance.

Material information

Any information which might influence the decision we make as to whether to provide insurance and if so on what terms and at what premium.

Micro-organisms

Living things such as amoeba, bacteria, fungi, mould, protozoa, and any similar or like forms.

Natural disaster

Earthquake, tsunami, volcanic activity, hydrothermal activity, geothermal activity, or subterranean fire, or fire occasioned by, through or in consequence of any of these.

Natural disaster damage

Any of the following:

  • damage directly or indirectly caused by or resulting from natural disaster
  • damage occurring (whether accidentally or not) as the direct result of measures taken under proper authority to avoid the spreading of, or otherwise to reduce the consequences of, any such damage but does not include any damage for which compensation is payable under any Act.

Period of insurance

When your policy starts, to when it ends. It is shown on your policy schedule, unless the policy is ended earlier.

Personal injury

Any of the following:

  • death, or physical external or internal bodily injury
  • illness, sickness, disease, debilitating or degenerative condition, or disability
  • mental injury, mental anguish, shock, or fright.

Persons insured

Any of the following:

  • any person who holds the position of or performs the duties of director, executive officer, trustee, secretary, manager, partner, or who holds any other position as an employee of the insured while acting in that capacity
  • the officers, committees and members of the insured’s own canteen, social sports and child care facilities or welfare organisations, first aid, fire and ambulance services, pension fund management and administrative committees in their respective capacities as such
  • any subsidiary company.

Policy schedule

The most recent policy schedule we have sent you which includes, who’s insured, business description, business address and the policy modules you have selected.

Premises

The business address shown on your policy schedule.

Pressure vessel

A vessel that, in normal use, is subject to generated or applied fluid pressure.

Rate of gross profit

Subject to any standard adjustments:

  • where your business has been trading for less than 12 months: the rate of gross profit earned on the turnover during the period between the date of the commencement of your business and the date of the damage, or
  • in all other cases: the rate of gross profit earned on the turnover during the financial year of the business immediately before the date of the damage.

Refrigeration machinery

Refrigeration units ordinarily used for the storage of food including all integral parts of them.

Regulations

Any regulations made under or framed in accordance with any Act, or any regulation or bylaw of any local authority.

Any specific regulation referred to also means any substitution of, amendment to or replacement of such regulation.

Reparation

An amount ordered by a New Zealand Court under Section 32 of the Sentencing Act 2002 to be paid to the victim of an offence. Reparation does not include:

  • damages, court costs, fines, penalties, any other form of criminal sanction, non-pecuniary relief, taxes, any payment deemed to be unlawful to insure against, or
  • your defence costs in relation to an offence.

Standard adjustments

Any adjustments necessary to provide for:

that occur before or after the damage, or would have affected your business had the damage not occurred.

The final adjusted figures will represent as nearly as may be reasonably practicable the results that would have been obtained during the relative period after the loss but for the insured damage.

Standard turnover

Subject to any standard adjustments:

  • where your business has been trading for less than 12 months: the proportional equivalent, for a period equal to the indemnity period, of the turnover realised during the period between the commencement of your business and the date of the damage, or
  • in all other cases; the turnover during that period in the twelve months immediately before the date of the damage that corresponds with the indemnity period.

Stock

Stock and materials in trade.

Subsidiary company

Any of the following:

  • any company that, at the inception of the period of insurance, by any applicable legislation, was or is deemed to be a subsidiary of the insured
  • any company in which the company named in your policy schedule:
    • owns or directly or indirectly controls more than fifty percent of the issued share capital
    • controls the composition of the board of directors
    • exercises effective management and control, either directly or through one or more of its subsidiary companies, or
  • any other company whose accounts are consolidated into those of the company named in your policy schedule in accordance with the relevant New Zealand Accounting Standard.

Sum Insured

The applicable Sum Insured shown on your policy schedule. The Sum Insured is the amount determined when your policy begins and at each renewal. It is shown on your policy schedule and you can discuss the value with us at any time.

Turnover

The money paid or payable to you for goods sold and delivered and for services rendered in course of the business at the premises.

Vehicle

Any type of machine on wheels or on self-laid tracks made or intended to be propelled by other than manual power and any trailer made or intended to be drawn by any such machine while attached to it.

Watercraft

Any type of craft, vessel or thing made or intended to float on or in or travel through water.

Act

Any Act of the New Zealand parliament that is not an Excluded Act in force at the commencement of the period of insurance, or which comes into force during the period of insurance, and any substitution of, amendment to, replacement of or any regulation made under, such Act.

Any specific Act referred to also means any substitution of, amendment to, replacement of and any statutory regulation made under such Act.

Business

Damage

Sudden, unforeseen, accidental physical loss, or sudden, unforeseen, accidental physical damage.

Employee

Any of the following while working for any insured in connection with the business:

  • a person under a contract of service or apprenticeship with any insured
  • a person hired or borrowed by any insured
  • a labour only sub-contractor.

Event

A sudden, accidental and unforeseen occurrence that causes damage, or personal injury that is not intended or expected by you. 

Excluded Acts

The following Acts of the New Zealand Parliament and any amendment to, re-enactment or substitution of, regulation of, or other subordinate legislation made under, such Acts:

  • Arms Act 1983
  • Aviation Crimes Act 1972
  • Commerce Act 1986
  • Crimes Act 1961
  • Criminal Investigations (Blood Samples) Act 1995
  • Hazardous Substances and New Organisms Act 1996 but only as it relates to new organisms
  • Misuse of Drugs Act 1975
  • Criminal Proceeds (Recovery) Act 2009
  • Summary Offences Act 1981
  • Land Transport Act 1998, or
  • any other Act shown in your policy schedule as an Excluded Act.

Gross profit

The amount by which the sum of the turnover and the amount of the closing stock will exceed the sum of the amount of the opening stock and the amount of the uninsured working expenses.

Note: The amount of the opening and closing stocks will be arrived at in accordance with your normal accounting methods, due provision being made for depreciation. The words and expressions used will have the meaning usually attached to them in your books and accounts including uninsured working expenses listed in your policy schedule

Indemnity period

The indemnity period means the continuous period beginning with:

  • the date of occurrence of the damage; or
  • if you have elected Automatic extension – ‘Deferral of indemnity’, the date to which you have deferred the commencement of the indemnity period in accordance with the extension and ending not later than the expiry of the number of months shown in your policy schedule during which the results of the business are affected in consequence of the damage.

Insured

The person, company, or entity listed as ‘Who’s insured’ on your policy schedule domiciled in New Zealand.

Machine

Any contrivance for the conversion and direction of motion or energy, or for the performance of any electronic process, and includes any protective device in connection with that contrivance.

Material Information

Any contrivance for the conversion and direction of motion or energy, or for the performance of any electronic process, and includes any protective device in connection with that contrivance.

Micro-organisms

Living things such as amoeba, bacteria, fungi, mould, protozoa, and any similar or like forms.

Natural disaster

Earthquake, tsunami, volcanic activity, hydrothermal activity, geothermal activity, or subterranean fire, or fire occasioned by, through or in consequence of any of these.

Natural disaster damage

Any of the following:

  • damage directly or indirectly caused by or resulting from natural disaster
  • damage occurring (whether accidentally or not) as the direct result of measures taken under proper authority to avoid the spreading of, or otherwise to reduce the consequences of, any such damage but does not include any damage for which compensation is payable under any Act.

Period of insurance

When your policy starts, to when it ends. It is shown on your policy schedule, unless the policy is ended earlier. 

Personal injury

Any of the following: 

  • death, or physical external or internal bodily injury
  • illness, sickness, disease, debilitating or degenerative condition, or disability
  • mental injury, mental anguish, shock, or fright. 

Persons insured

Any of the following:

  • any person who holds the position of or performs the duties of director, executive officer, trustee, secretary, manager, partner, or who holds any other position as an employee of the insured while acting in that capacity
  • the officers, committees and members of the insured’s own canteen, social sports and child care facilities or welfare organisations, first aid, fire and ambulance services, pension fund management and administrative committees in their respective capacities as such
  • any subsidiary company

Policy schedule

The most recent policy schedule we have sent you which includes, who’s insured, business description, business address and the policy modules you have selected.

Premises

Pressure vessel

A vessel that, in normal use, is subject to generated or applied fluid pressure.

Rate of gross profit

Refrigeration machinery

Refrigeration units ordinarily used for the storage of food including all integral parts of them. 

Regulations

Any regulations made under or framed in accordance with any Act, or any regulation or bylaw of any local authority.

Any specific regulation referred to also means any substitution of, amendment to or replacement of such regulation.

Reparation

An amount ordered by a New Zealand Court under Section 32 of the Sentencing Act 2002 to be paid to the victim of an offence. Reparation does not include:

  • damages, court costs, fines, penalties, any other form of criminal sanction, non-pecuniary relief, taxes, any payment deemed to be unlawful to insure against, or
  • your defence costs in relation to an offence.

Standard adjustments

Any adjustments necessary to provide for:

that occur before or after the damage, or would have affected your business had the damage not occurred.

The final adjusted figures will represent as nearly as may be reasonably practicable the results that would have been obtained during the relative period after the loss but for the insured damage.

Standard turnover

Subject to any standard adjustments

  • where your business has been trading for less than 12 months: the proportional equivalent, for a period equal to the indemnity period, of the turnover realised during the period between the commencement of your business and the date of the damage, or
  • in all other cases; the turnover during that period in the twelve months immediately before the date of the damage that corresponds with the indemnity period

Stock

Stock and materials in trade.

Subsidiary company

Any of the following:

  • any company that, at the inception of the period of insurance, by any applicable legislation, was or is deemed to be a subsidiary of the insured
  • any company in which the company named in your policy schedule:
    • owns or directly or indirectly controls more than fifty percent of the issued share capital
    • controls the composition of the board of directors
    • exercises effective management and control, either directly or through one or more of its subsidiary companies, or
  • any other company whose accounts are consolidated into those of the company named in your policy schedule in accordance with the relevant New Zealand Accounting Standard.

Sum insured

The applicable Sum Insured shown on your policy schedule. The Sum Insured is the amount determined when your policy begins and at each renewal. It is shown on your policy schedule and you can discuss the value with us at any time.

Turnover

The money paid or payable to you for goods sold and delivered and for services rendered in course of the business at the premises.

Vehicle

Any type of machine on wheels or on self-laid tracks made or intended to be propelled by other than manual power and any trailer made or intended to be drawn by any such machine while attached to it.

Watercraft

Any type of craft, vessel or thing made or intended to float on or in or travel through water.