Public and Products Liability Policy Module

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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 all amounts you become legally liable to pay as direct compensation for:

• personal injury, or

• damage to property

happening within the geographical limits during the period of insurance as a result of an occurrence in connection with the business.

The total amount payable by us for all amounts in respect of:

• one occurrence or series of occurrences as a result of or attributable to one source or original cause

• any one period of insurance for all claims in respect of products, and

• any one period of insurance for all claims in respect of releases (including discharge, dispersal, seepage, migration and escape) of pollutants

is the limit of indemnity shown in your policy schedule irrespective of the number of parties entitled to cover under this policy module.

For the purposes of establishing the total amount payable by us for one period of insurance, it is understood that any releases of pollutants as a result of or attributable to one source or original cause (regardless of whether the release is continuous or intermittent) will be considered as one release.

If we accept a claim under this policy we will also pay defence costs for any actual or threatened legal action against you relating to or otherwise arising from the occurrence or occurrences.

The following extensions are automatically included in your cover.

If any of the following extensions or memoranda apply, they will be shown on your policy schedule under ‘Additional extensions’.

Unless otherwise stated these extensions and memoranda are subject to all provisions of this policy module.

If there is any conflict or inconsistency between this extension or memoranda, only the more particular extension or memorandum will apply.

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.

Asbestos

This policy does not cover any personal injury or damage to property 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.

Building defects and mould

This policy does not cover any personal injury or damage to property directly or indirectly caused by or arising in connection with any of the following:

• the action or effects of micro-organisms, mildew, rot, decay, gradual deterioration, or any similar or like forms present in any building or structure

• the failure of any building or structure to comply with or perform to the requirements of any building code or to meet the level of performance, quality, fitness or durability of its intended purpose

• the failure of any building or structure to contain or incorporate materials, a design, a system or a standard of work which effectively prevents or manages the presence or penetration of moisture or water to which the building or structure might reasonably be subjected.

In addition, this policy does not cover you for any costs or expenses arising out of 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.

However, we will cover you for personal injury or damage to property that is caused by or arises out of leakage of internal water pipes, cisterns or sewerage systems.

Aerial device products

This policy does not cover any personal injury or damage to property directly or indirectly caused by products intended specifically for, and installed in or on, any aerial device, or directly or indirectly caused by or arising in connection with products which you knew would be installed and where such products are essential to the operation or navigation of any aerial device.

Defective work

This policy does not cover any personal injury or damage to property where your liability is for the cost of performing, completing, correcting or improving any work done or undertaken by you.

However, we will cover you for your legal liability for resultant damage to other separate property or parts that you have not been working on.

This exclusion does not apply where cover is provided under the Additional extension – ‘Defective workmanship’.

Watercraft and aircraft

This policy does not cover any personal injury or damage to property directly or indirectly caused by your ownership, possession, operation, repair, maintenance or use of any:

• aerial devices, or

• watercraft exceeding 8 metres in length.

Vehicles

This policy does not cover any personal injury or damage to property caused by the ownership, possession, or your use of any vehicle which is or should have been registered or is otherwise insured in respect of the same liability.

However if you are not entitled to cover under any other policy, this exclusion will not apply to claims arising from:

• the loading or unloading of a vehicle or the bringing to or taking away of a load from a vehicle, or

• the use of the vehicle as a tool of trade but not use as a motor vehicle.

This exclusion does not apply where cover is provided under the Automatic extension – ‘Motor and watercraft repair’.

Property in care, custody or control

This policy does not cover any damage to property owned, occupied or held in trust by you or in your care, custody or control other than:

• premises that are not owned or rented by you but at which you are undertaking work in connection with the business, or

• property in your custody or control in any free car park operated by you.

This exclusion does not apply where cover is provided under the Automatic extensions – ‘Motor and watercraft repair’, ‘Property in care custody or control’ or ‘Goods on hook’.

Fines and penalties

This policy does not cover your legal liability, in respect of any fines, penalties, reparation, exemplary, aggravated or liquidated damages, except where cover is provided under the Automatic extensions – ‘Exemplary damages’ or ‘Reparation’.

Fraudulent or criminal intent

This policy does not cover any personal injury or damage to property directly or indirectly caused by any act or omission having fraudulent, dishonest, criminal or malicious intent.

Loss of use

This policy does not cover any personal injury, damage to property or loss of use of tangible property that has not been physically damaged or destroyed resulting from:

• a delay in or lack of performance by you of any contract or agreement, or

• the failure of products or work performed by you to meet the level of performance, quality, fitness or durability warranted or represented by you.

This does not apply to loss of use of other tangible property resulting from the sudden and accidental physical damage to or destruction of products or work performed by you after such products or work have been put to their intended use by any person or organisation other than you.

Product repair or replacement

This policy does not cover in respect of any amount payable for the cost of recalling, withdrawing, replacing, or repairing products or of making any refund on the price paid for products, provided that this exclusion does not apply to liability for physical loss or damage to products caused by other products if they were physically independent at the time of such physical loss or damage.

This exclusion does not apply where cover is provided under the Additional extension – ‘Defective workmanship’.

Underground services

This policy does not cover any damage to property in respect of underground services, pipes or cables or legal liability arising out of that damage regardless of how the damage is caused unless you have taken all reasonable steps immediately prior to the commencement of the work to establish the position of such services and have taken all reasonable steps to avoid damage.

An excess of $5,000 will apply for each occurrence.

Professional duty

This policy does not cover any personal injury or damage to property arising out of a breach of the duty owed in a professional capacity by you, but this does not apply to services rendered by members of your own first aid or ambulance services.

Consequential loss or costs you incur

This policy does not cover any of the following:

• consequential losses of any kind

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

• costs 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

• any other liability incurred.

Pollutants

This policy does not cover any personal injury or damage to property directly or indirectly caused by or arising out of pollutants unless caused by or arising out of an identifiable and sudden accidental and unexpected release (including discharge, dispersal, seepage, migration and escape) of pollutants that takes place in its entirety at a specific time and place.

Employees and Accident Compensation Act

This policy does not cover any personal injury to or damage to property of:

• any employee other than a person hired or borrowed by the insured or any labour only subcontractor; or

• any person 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.

This exclusion does not apply where cover is provided under the Automatic extension – ‘Employees’ personal effects’.

Liability under agreement

This policy does not cover any personal injury or damage to property arising out of or in connection with liability assumed under an agreement unless such liability:

• would have attached in the absence of such agreement

• is assumed by you under a warranty of fitness or quality, or is implied by law, in respect of products.

This exclusion does not apply where cover is provided under the Automatic extension – 'Indemnity to landlord’.

Vibration or weakening of support

This policy does not cover any personal injury or damage to property directly or indirectly caused by vibration or by the withdrawal or weakening of support of any structure or land.

This exclusion does not apply where cover is provided under the Automatic extension – ‘Vibration or weakening of support’.

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).

Communicable disease

This policy does not cover any damage, 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.

Intentional or reckless acts

This policy does not cover any personal injury or damage to property arising directly or indirectly from any intentional or reckless act or omission.

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 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.

Electronic data

This policy does not cover damage, 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 and software being damaged, distorted, deleted, corrupted, altered, misinterpreted, or misappropriated

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

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

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

• the value of any electronic data and software

• a computer virus.

Cyber events

This policy does not cover damage, cost or liability, directly or indirectly caused by, arising from, contributed to by, or 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

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

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.

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 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.

Cross liability

Any claim made by you against any other insured or person insured will be treated as though you are not an insured or person insured. Where more than one party is described as an insured or person insured each such party will constitute a separate insured or person insured for this clause.

Provided that nothing contained in this condition:

• will operate to increase the limit of indemnity shown on your policy schedule,

• overrides the provisions of How we administer your policy – ‘You are jointly insured’.

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. Within a reasonable period of the expiry of each period of insurance you will provide us with such information as we may require. The premium or renewal premium will be adjusted and the difference paid by or allowed to you.

You must avoid loss, damage or liability

You will 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

• 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 and property

• maintain premises and plant and everything used in the business in proper repair and at your own expense remedy any defect or eliminate any danger that may give rise to personal injury or damage to 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.

Jurisdiction

This insurance will not apply to any judgment delivered by a court outside New Zealand (or any judgment, registration or order obtained in New Zealand to enforce that same judgment) where you are represented in a country outside New Zealand by or through any of the following:

• branch

• trading division

• subsidiary company

• associated company or companies

• employee or company holding a power of attorney on your behalf.

This condition does not apply to your activities where you have a normal place of residence in New Zealand and are away from New Zealand for a short time in connection with the incidental performance of clerical, managerial, marketing or sales responsibilities, but not the performance of actual assembly, construction, dismantling, farming, manufacture, renovation or repair work, and not involving the performance of any other physical work of a manual nature or in respect of a trade.

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 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.

Accident / Accidental

An unforeseen and unintended happening or event occurring anywhere within New Zealand.

Aerial device

Any type of aircraft, hovercraft, spacecraft or other craft or thing made or intended to float on or in or travel through air or space.

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.

Damage

Sudden, unforeseen, accidental physical loss and sudden, unforeseen, accidental physical damage that occurs at a specific place and time.

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.

Damage to property

Physical loss of or damage to tangible property including resultant loss of use and also loss of use of tangible property that has not been physically damaged or destroyed provided such loss of use is caused by an occurrence.

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.

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.

Geographical limits

• New Zealand; or

• elsewhere in the world but only in respect of personal injury or damage to property that arises out of:

  • the activities of any persons insured whose normal place of residence is in New Zealand but who is away for a short time in connection with the incidental performance of clerical, managerial, marketing or sales responsibilities but not the performance of actual assembly, construction, dismantling, farming, manufacture, renovation or repair work and not involving the performance of any other physical work of a manual nature or in respect of a trade; or

  • products supplied from New Zealand but the cover granted for such products will not apply to claims happening in the United States of America or its territories or possessions and/or Canada if to the knowledge of any of the persons insured such products have been or will be supplied to a person, company or organisation within those areas whether or not in their original form.

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 or 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, 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

An event, including continuous or repeated exposure to substantially the same general conditions, that results in personal injury or damage to property neither expected nor intended by you. All occurrences of a series as a result of or attributable to one source or original cause will be deemed one occurrence.

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.

Pollutants

Any solid, liquid, gaseous or thermal irritant or contaminant including but not limited to smoke, vapour, soot, fumes, acids, alkalis, micro-organisms, chemicals, sewage and waste. Waste includes materials to be recycled, reconditioned or reclaimed.

Premises

The business address shown in your policy schedule.

Products

Anything including any packaging or container (other than a vehicle) supplied, sold, distributed, grown, extracted, manufactured, constructed, erected, installed, serviced, repaired or treated by you in the course of the business after it has ceased to be in your possession or under your control, and also includes:

• the design formula or specification of such products;

• directions, markings, instructions, warnings or advice given or omitted to be given in connection with such products.

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.

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.

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.

Workmanship

Work done in the process of manufacturing, constructing, erecting, installing, servicing, repairing or treating property.