Employee Theft Policy Module

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.

Your insurance contract consists of this policy document and your most recent policy schedule.

Your policy document and policy schedule are designed to be read together.

When read together, your policy schedule and policy document outline your cover, which is the insurance we agree to provide you. This cover is governed by the limits, terms and conditions set out within this policy document and your policy schedule.

Your policy schedule takes priority if the information in this policy document and your policy schedule is different.

We agree to provide cover as long as you have paid your premium.

We have used the headings in this policy document to help guide you. These headings are purely descriptive in nature. You should not rely on headings to interpret the policy

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.

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.

The following extensions are automatically included in your cover.

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

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 the 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 or costs you incur

This policy does not cover any of the following:

• loss of use

• consequential losses of any kind

• costs or expenses you may incur to prove or help us with your claim

• repairs that are not related to your claim.

This exclusion includes, but is not limited to, the following:

• loss of income

• loss of or reduction in value

• additional costs incurred

• your time or anyone else’s time or materials used

• inconvenience or disruption

• expenses and 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.

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 loss, cost or liability, directly or indirectly caused by, arising from, contributed to by, or in any way connected to any of the following:

• electronic data being damaged, distorted, deleted, corrupted, altered, misinterpreted, or misappropriated

• error in creating, amending, entering, deleting or using electronic data

• inability or failure to receive, send, access or use electronic data for any period of time

• any loss of use, reduction of functionality, repair, replacement, restoration or reproduction of any electronic data

• the value of any electronic data

• a computer virus.

Cyber events

This policy does not cover loss, cost or liability, directly or indirectly caused by, arising from, contributed to by, or in any way connected to a cyber act or cyber incident. However, we will not apply this exclusion for any of the following:

• an event otherwise covered by this policy that causes a cyber incident

• loss resulting from an event otherwise covered by this policy that has been caused by a cyber incident or cyber act.

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.

Communicable disease

This policy does not cover any loss, cost, any other sum of any kind, or liability, directly or indirectly caused by, arising from, contributed to by, or in any way connected to any of the following:

• communicable disease

• the fear or threat of any communicable disease, whether it is actual or perceived

• actions by any person, entity or public authority to respond to, control, prevent or suppress communicable disease.

Any other sum of any kind also includes any increased or additional costs or expenses of a claim that is otherwise covered by this policy.

Communicable disease means any disease that can be transmitted by any substance or agent, directly or indirectly from one organism to another, including any:

• virus, bacterium, parasite, or any other organism

• any variation of the above, whether considered living or not.

Communicable disease also includes any Infectious Disease or Quarantinable Disease as defined in or declared under the Health Act 1956, future amendments to the Act, or any replacement Act.

This exclusion applies, regardless of any other contributing cause or event that happens at the same time or some other time.

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.

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 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.

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 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:

• any money of the employee held by you; and

• any money which but for the employee’s theft would have been due to the employee from you

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.

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.

Business

The business and occupation described on your policy schedule.

Computer system

Any of the following systems:

• computer, communication system, or any other electronic device

• hardware, software, server or cloud

• any microcontroller.

A computer system also includes any system, output or data storage device that is similar to those mentioned above.

Cyber act

One or more unauthorised, malicious or criminal acts involving accessing, using, processing, or operating of any computer system. This also includes any threat or hoax of these acts.

Cyber incident

Any of the following:

• one or more errors or omissions involving accessing, using, processing, or operating any computer system

• one or more occurrences when any computer system is partially or totally unavailable

• one or more failures to access, process, use or operate any computer system.

Electronic data

Facts, concepts and information converted to a form useable for communications, display, distribution, interpretation or processing by electronic and electromechanical data processing or electronically controlled equipment.

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 you do not intend or expect.

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, subterranean fire, or fire resulting from 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.

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.

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.