Applies to new and renewing policies with a period of insurance starting on or after 22 May 2022
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
Go to aainsurance.co.nz/contact
Or if you would prefer to phone us:
For sales, service and general queries, call us on 0800 500 213
For claims queries, call us on 0800 500 216
The documents that make up your insurance contract
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.
You have a cooling-off period if you change your mind
We provide you with a 21-day cooling-off period if you change your mind. You can cancel your policy within 21 days from the day your policy started, as long as you have not made a claim.
If you choose to cancel your policy within this period, we will cancel your policy back to the policy start date and refund you the full amount of any premium paid. The cooling-off period does not apply if you renew your policy.
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 unhappy with one of our policies, our service or a decision on your claim, please tell us.
Often a quick conversation can help sort things out.
If we can’t reach a resolution, please let us know. We can explain our complaints procedure to you, and we have a Customer Resolution Service to help you if needed.
Headings and defined words in your policy
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
Words in italics have specific definitions
Some words in this policy document are in italics. These words have specific meanings. We have explained them in the ‘Definitions’ section at the end of this policy document.
The meaning of other common words in your policy document
We use some common terms throughout this policy document. The meaning of these words are explained below.
‘We’, ‘us’ or ‘our’
When we say ‘we’, ‘us’ or ‘our’, we mean AA Insurance Limited.
‘You’ or ‘your’
When we say ‘you’ or ‘your’, we mean the insured and any other persons insured.
Cancelling your policy
If you choose to cancel your policy
You may cancel your policy at any time, unless you have made a claim.
If you cancel your policy outside the cooling-off period and you have not made a claim, we will refund you any amount we owe after the cancellation date. We will deduct any cancellation fee shown on your policy schedule from the amount we refund you.
If we choose to cancel your policy
We may cancel your policy at any time by notifying you in writing. The cancellation will take effect on the 7th day after we have sent the notice. We will refund you any amount we owe after the cancellation date.
What you are covered for
We will cover you for defence costs and all sums that you become legally liable to pay as damages as a consequence of proceedings arising from any employee sustaining personal injury in New Zealand in the course of, or related to, their employment in the business if:
you first become aware of the proceeding during the period of insurance, and
the proceeding is notified to us during the period of insurance or within 30 days after the end of the period of insurance, and
the personal injury occurred on or after the continuity date.
Take-over
If during the period of insurance a take-over occurs, the cover provided is amended to apply only to personal injury occurring before the effective date of the take-over.
Limits on what we will pay
The most we will pay on your behalf in respect of all damages and defence costs arising out of all proceedings in any one period of insurance is the applicable limit of indemnity shown on your policy schedule.
Automatic extensions
The following extensions are automatically included in your cover.
Advancement of defence costs
We will advance defence costs to you as and when they are incurred before the final disposition of the proceeding. Such payments will be repaid to us by you severally, according to your respective interests, in the event and to the extent that the proceeding is in fact determined not to be covered or is resolved on terms or in a manner that excludes it from cover.
Continuous cover
Where:
you first became aware of any proceeding, fact or circumstance as described in ‘Notification of circumstance’, after the continuity date and before the period of insurance, and
you do not notify us of such proceeding, fact or circumstance, until a date during the period of insurance or within 30 days after the period of insurance,
then:
in the absence of fraudulent non-compliance with the duty of disclosure or fraudulent misrepresentation by any of you in respect of such proceeding, fact or circumstance; and
provided that we have continuously been your employer’s liability insurer from and after the continuity date;
we will accept notification of such proceeding, or any proceeding arising from such facts or circumstances, during the period of insurance.
The cover provided will be in the terms of this policy except that the applicable limit of indemnity and excess will be as they were at the date when you first became aware of the proceeding, facts or circumstances.
Additional extension
If you have chosen to include the following extension, it will be shown on your policy schedule.
Defence costs
In the event of any proceeding which involves a charge under Section 9 of the Law Reform Act 1936, and as a consequence of which defence costs cannot be paid under this policy module, then the policy is extended to indemnify defence costs for all claims or a series of claims as a result of or attributable to one source or original cause and in the aggregate during the period of insurance.
The most we will pay in any one period of insurance under this extension is $250,000, unless an alternative limit is shown on your policy schedule.
If you have cover under the Statutory Liability policy module, the most we will pay for in any one period of insurance for defence costs under both modules is $250,000 unless an alternative limit is shown on your policy schedule.
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, proceeding or occurrence you must comply with the following conditions:
take all reasonable steps to minimise the loss and prevent further loss
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
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.
Conduct of claim
We will be entitled to take over and conduct in your name, with full discretion in the conduct of the proceedings, the defence of any proceeding, or the prosecution in your name for your own benefit, of any proceeding. If you do not agree with our decision to settle a proceeding, the terms of Making a claim – ‘Senior counsel’ will apply.
Election to settle
We may settle any proceeding with your consent, or where a senior counsel recommends settlement or a guilty plea in accordance with the terms of Making a claim – 'Senior counsel’.
If you withhold consent to such settlement, the most we will pay for the proceeding is the amount for which the proceeding could have been settled plus defence costs incurred with our consent up to the date such settlement was recommended.
Senior counsel
If you and we disagree as to whether a proceeding should be settled or defended, a senior counsel will be appointed by us to recommend whether to settle or defend the proceeding. The senior counsel will take into consideration the economics of the matter, costs that are likely to be recovered by the prosecuting authority, the likely defence costs and the prospects of you successfully defending the action. We will pay the cost of the senior counsel’s opinion and this will be payable in addition to the limits of indemnity shown in your policy schedule.
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.
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.
Instalment premiums
If you are paying your premiums by instalments, we will deduct any unpaid instalments from any payments that we make in relation to your claim.
What you are not covered for
This section explains what your policy does not cover. These exclusions apply to all sections of this policy.
Deliberate or wilful non-compliance
This policy does not cover any liability arising directly or indirectly from, or in any way connected with any proceeding that arises from:
your deliberate or wilful breach of, or failure to comply with, or disregard for, the provisions of any Act, or
your deliberate or wilful failure to comply with or disregard for any lawful notice or order issued by any regulatory authority under any Act.
Prior injury
This policy does not cover any personal injury sustained before the continuity date.
Prior claims and known circumstances
Except where cover is provided under the Automatic extension – 'Continuous cover’, we will not cover you for:
any proceeding made, threatened or intimated against you before the continuity date, or
any proceeding arising directly or indirectly from any facts or circumstances:
notified under any insurance that was in force before the inception of this policy, or
known to you before the continuity date and which might reasonably be expected to give rise to a proceeding.
Health and safety notices
This policy does not cover any proceeding arising directly or indirectly out of any failure by you to comply with any improvement, prohibition or suspension notice issued to you or any employee under The Health and Safety at Work Act 2015 or equivalent notices issued under any replacement Act.
Asbestos
This policy does not cover any proceeding directly or indirectly caused by or arising out of or in connection with:
the inhalation of
exposure to
fears of the consequences of inhalation or exposure to
cleaning up, removal of, or
damage to or loss of use of any property arising out of asbestos, asbestos fibres or any derivatives of asbestos.
Third parties
This policy does not cover any liability arising directly or indirectly from, or in any way connected with any proceeding that arises from, the acts or omissions of any third party (other than an employee) contracted by you in accordance with your business.
Building defects or mould
This policy does not cover any proceeding that is directly or indirectly caused by or contributed to, or arises in connection with:
the action or effects of micro-organisms, mildew, rot, decay, gradual deterioration, or any similar or like forms, in any building or structure, or
the abating, testing for, monitoring, cleaning up, removing, containing, treating, detoxifying, neutralising, remediating or disposal of, or in any way responding to or assessing the effects of micro-organisms, mildew, rot, decay, gradual deterioration, or any similar or like forms, in any building or structure.
Consequential loss or costs you incur
This policy does not cover:
consequential losses of any kind, or
costs or expenses you may incur to prove or help us with 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
any other liability incurred.
Other than usual business
This policy does not cover any proceeding by an employee not directly employed to carry out the normal activities of the business unless you give prior notice of such employment to us and we confirm our agreement in writing.
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.
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, proceeding, 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.
Accident Compensation Act 2001
This policy does not cover any personal injury where the personal injury falls within the scope of cover provided by the Accident Compensation Act 2001 or any liability imposed by the provisions of any worker’s compensation legislation or any accident compensation legislation or any industrial award or agreement or determination, or would fall within the scope of cover but for:
a failure by the victim to correctly notify a claim to the Accident Compensation Corporation within the time required under the Act, or to claim any amount he or she would be entitled to under the Act for any other reason whatsoever, or
the decision of any authority including the Accident Compensation Corporation to decline a claim or limit its liability in whole or in part and for any reason whatsoever.
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.
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.
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.
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.
You must tell us if there is a change in circumstances
You must tell us immediately of any change in circumstances that has 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 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 liability that happens after the date of the change in circumstances
cancel your policy.
Notification of circumstance
If during the period of insurance you become aware of any facts or circumstances that may give rise to a proceeding against you, and such facts or circumstances are notified to us during the period of insurance, any proceeding that may subsequently arise out of those facts or circumstances will be deemed to have been first made against you during the period of insurance and notified to us during the period of insurance in which the facts or circumstances were notified.
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:
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.
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.
Severability and non-imputation of proposal and policy
Cover under this policy is provided severally to each of you. The proposal or submission will be construed to be a separate application for cover by each of you.
When determining the availability of cover with respect to proceedings made against any of you, no fact pertaining to, no statement or declaration made in the proposal or submission, no state of mind or knowledge possessed, and no failure to comply with the general and claims conditions by one of you will be imputed to any other of 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.
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 Acts 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 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.
Continuity date
The date from which you have maintained uninterrupted cover with us for this type of insurance.
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.
Damages
Amounts payable under any judgment against you and/or settlements negotiated by us, including the other party’s costs where applicable, and includes interest on any judgment that accrues after entry of the judgment and before we have paid, tendered or deposited in court that part of the judgment that does not exceed the appropriate limit of liability, limit of indemnity or sum insured shown in your policy schedule.
Damages do not include fines, penalties, reparation, or any other form of criminal sanction, non-pecuniary relief, taxes or any payment deemed to be unlawful to insure against.
Defence costs
All reasonable legal costs and expenses for expert assistance (other than your wages, salaries, lost earnings or fees) incurred by you or on your behalf with our consent (which will not be unreasonably withheld) in defending, investigating, monitoring, settling, or appealing any proceeding made against you.
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, accidental and unforeseen occurrence that causes damage or personal injury that you do not intend or expect.
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.
Fine
Any monetary penalty or other monetary fine or costs and disbursements assessed that may be payable by you as a result of a conviction for an offence under an Act arising out of an occurrence.
A fine does not include any of the following:
the cost or payment of any enforcement order, remedial order or compliance order
any tax (including any fine or penalty resulting from the failure to pay any tax), rate, duty, or interest on such tax, rate, or duty, except GST
any damages, restitution, compensation or reparation
the value of any property subject to confiscation or forfeiture
a fine, penalty or infringement fee paid, or which becomes due to be paid under the Health and Safety at Work Act 2015, but does include reparation ordered as a result of a conviction under the Health and Safety at Work Act 2015
any other monetary payment, penalty or fine deemed to be unlawful to insure against.
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.
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, 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.
Occurrence
Any act or omission that results in, or may result in, an allegation of the commission of an offence 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.
Proceedings
Any threatened or actual legal proceedings, investigation, or inquiry that may give rise to damages, the imposition of fines, and/or the incurring of defence costs, and that is a result of either:
an occurrence in respect of your business, or
any of your employees sustaining personal injury in New Zealand while in the course of their employment in your business.
Regulations
Any regulations made under or framed in accordance with any Act, or any regulation or by law 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.
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.
Take-over
Either of the following events: