Employee Theft 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 contract

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 loss of money or goods belonging to your business resulting from theft by any employee during the period of insurance.

The theft must be discovered and notified to us within 30 days of the end of the period of insurance.

Limits on what we will pay

The most we will pay for all events combined in any one period of insurance is the applicable Sum Insured noted on your policy schedule.

Any theft committed before the current period of insurance but indemnifiable under Automatic extension ‘Continuous cover’ will be regarded as having been committed during the first period of insurance.

Automatic extensions

The following extensions are automatically included in your cover. 

Ex-employees

We will cover you following any theft committed during any period of insurance by any former employee within 30 days of the end of the employee's employment with you.

Provided that:

  • the employee has not ceased to be employed by you due to any circumstances tending to cast doubt on the honesty of the employee, and
  • upon termination of employment you will have taken all reasonable security precautions to prevent any theft being committed by the employee.

Social club

We will cover you for loss of money belonging to or held in trust by any social or sporting club formed for the benefit of your employees and with your consent, directly caused by any theft committed during any period of insurance by any social or sporting club member.

Continuous cover

We will cover you in respect of any theft discovered during the period of insurance, but committed during a previous period of insurance, provided:

  • you have held Employee Theft cover continuously from the time the theft was committed until the current period of insurance, and
  • this policy would have covered the loss at the time of the event.

We will pay up to the limit of indemnity applicable at the time of the event, or the limit of indemnity currently applicable, whichever is the lesser.

There is no cover for any theft committed more than three years before it was discovered. 

Making a claim

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

Claims 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 theft
  • tell the police of the theft
  • do not admit responsibility for any lossdamage, 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
  • keep damaged property for our inspection and allow us to inspect any building or other property where loss 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 don't 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 lost or stolen property for which we have paid a claim is later found or recovered, you must:

  • tell us immediately, and
  • if we request it, hand the property over to us.

We have the right to keep any property, including any proceeds from its sale, for which we have paid a claim under this policy subject to adjustment if you have not been fully indemnified for your loss.

If any person is ordered to make or otherwise makes reparation to you for loss or damage to any property for which we have paid a claim under this policy you must reimburse us for that payments 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. 

What you are not covered for

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

Circumstances not covered

This policy does not cover any loss:

  • caused by an employee you knew or reasonably ought to have known was dishonest
  • shown only by an inventory count or profit and loss analysis
  • resulting directly from any intentional act by anyone with an ownership interest in your business
  • resulting from forgery or fraudulent alteration of any financial instrument, or
  • resulting from any electronic payment or transfer of funds.

Salaries and other benefits

This policy does not cover any loss in respect of any improper financial gain obtained by any employee in the form of salaries, fees, commission or other benefits earned in the normal course of employment.

Consequential loss and incurred costs

This policy does not cover any of the following:

  • loss of use
  • consequential losses of any kind
  • costs or expenses you may incur in order for you to prove or assist us with your claim
  • repairs that are not related to your claim.

This includes any loss of income, loss of or reduction in value, additional costs or expenses, compensation for your time or anyone else’s time or materials used, and any other liability incurred.

Confiscation

This policy does not cover any loss, damage, 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).

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.

Electronic data

This policy does not cover any loss of or damage to electronic data and software, from any cause whatsoever including, but not limited to, a computer virus. This includes loss of use, reduction in functionality or any other associated loss or expense in connection with electronic data and software.

War, terrorism or nuclear incidents

This policy does not cover any loss, cost or liability, 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, injury, liability, or prosecution of any type, 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 can cover other parties as well as you. You and any person covered by this policy must meet all the following conditions and obligations to gain benefit of any cover under this policy. 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 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.

You must tell us if there is a change in 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.

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 alarms, in an operational condition
  • avoid any loss, damage or 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.

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. 

You must support loss reduction and recovery

You must give all reasonable assistance to enable us to obtain by legal proceedings or otherwise the reimbursement of any loss from the employee or by the employee’s estate or recovery of the loss from any other source.

The following will be deducted from any amount otherwise payable under this policy:

to the extent you are lawfully able to retain it to offset your loss.

You and we will share any other recovery made by either on account of any loss in the proportion that the amount of the loss borne by each bears to the total amount of the loss.

Premium adjustment

If any part of the premium or renewal premium is based on estimates furnished by you, you will keep an accurate record containing all relevant details and will allow us to inspect such record. You will within one month after the expiry of each period of insurance furnish any information we may require. The premium or renewal premium will subsequently be adjusted and the difference paid by or refunded to you.

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 cancelled and you will not be sent a cancellation 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

Business

The business and occupation described on your policy schedule.

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 and unforeseen occurrence that causes loss, or damage that is not intended or expected by you.

Insured

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

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.

Money

Current coin, bank and currency notes, cheques, traveller’s cheques, postal notes, money orders, unused postage stamps, redeemable vouchers and tokens, franking machine credits, and other negotiable instruments.

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.

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.

Period of insurance

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

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.

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.

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.

Theft

Physical removal of money, goods, stock or contents by any employee with the clear intent of obtaining an improper financial gain for themselves or for any other person or organisation intended by the employee to receive such gain.

Business

Event

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

Insured

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

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. 

Money

Current coin, bank and currency notes, cheques, traveller’s cheques, postal notes, money orders, unused postage stamps, redeemable vouchers and tokens, franking machine credits, and other negotiable instruments.

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.

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

Period of insurance

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

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.

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.

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.

Theft

Physical removal of money, goods, stock or contents by any employee with the clear intent of obtaining an improper financial gain for themselves or for any other person or organisation intended by the employee to receive such gain.

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.