childcare combined liability
policy
Vero Liability Insurance Limited
Private Bag 92055
Auckland New Zealand
This is Your insurance Policy underwritten by Vero Liability Insurance Limited (hereinafter referred to as “the Company”). It consists of the wording and
a Schedule. As You have applied to the Company in writing for this insurance and provided You have paid the Company the premium the Company will
indemnify You as set out below for claims falling within the scope of the Policy.
section 1 - trustees & officers liability
(This is a claims made and notified Section)
the cover
A
The Board of Trustees
The Company will pay each and every Loss arising from claims first made against You and notified to the Company during the Period of
Insurance and caused by reason of any Wrongful Act in the management of the board of trustees to the extent that You are legally liable for
such Loss.
Individual Trustee’s Reimbursement Extension
The Company will pay on Your behalf, or on behalf of any member of the board of trustees who has become legally liable, any c laim(s) made
against him/her and for which the Company has confirmed that cover exists under this Policy.
B.
Professional Indemnity Extension
The Company will pay on behalf of:
(a)
(b)
(c)
Your Organisation; or
any Employee; or
any past, present, current or acting early childhood centre principal or licensee,
Legal Expenses and Damages on account of any claim first made against those noted above during the Period of Insurance and arising from
any breach or alleged breach of Your Business.
limits of liability
Our total aggregate liability under this Section per board of trustees for any one Organisation for Loss arising from all claims first made against You and
notified to the Company during the Period of Insurance, shall not exceed the amount specified in the Policy Schedule and shall be deemed to include all
costs, charges and expenses incurred in the investigation and defence of claims, actions or proceedings or appeals relating t o those claims.
definitions
(See also the General Definitions applicable to all Sections of this Policy)
“Loss” shall mean sums which You are legally liable to pay in respect of any Wrongful Act including damages, judgements, settlements, claimants’
costs and expenses, and costs, charges and expenses incurred in the investigation and defence of actions, suits or proceeding s and appeals, but
excluding Fines, penalties or punitive damages.
“Trustees & Officers” shall include committee members, volunteers, proprietors, directors, partners or any other person involved in the
administration or running of the Early Childhood Centre.
“Wrongful Act” shall mean any actual or alleged breach of trust, breach of duty, neglect, error, misstatement, misleading statement, omission or
other act wrongfully committed or attempted by You which arises solely by reason of the performance of Your duties as trustees and officers.
exclusions
(See also the General Exclusions applicable to all Sections of this Policy)
This Section shall not indemnify You for Loss arising from any claim or claims made against You:
(a)
where any provision in the Education Act 1989 or Education (Early Childhood) Regulations Act 1998 operates to exonerate trustees from personal
liability provided that this exclusion shall not allow the Company to avoid defending claims brought against any trustee for personal liability until
legal process shall establish the validity of such Indemnity Provisions.
(b)
for Loss in connection with or arising from or by reason of or directly or indirectly caused by;
i.
bodily injury, sickness, disease or death of any person; or
ii.
Property Damage (including the loss of use thereof); or
iii.
seepage, pollution or contamination and based upon or attributed to a violation or alleged violation of any law prohibiting or providing
for the control or regulation of emissions or effluent of any kind into the atmosphere or any body of land, water, waterway or
watercourse or arising from any action or proceeding brought for enforcement purposes pursuant to any such law or arising from any
suits alleging seepage, pollution or contamination and based upon nuisance, trespass, negligence or otherwise.
(c)
for any Punitive and/or Exemplary Damages;
(d)
arising out of any Wrongful Act which occurred prior to the Retroactive Date;
(e)
that are payable under Sections 2, 3, 4, 5, 6 or 7.
childcare combined liability
policy
conditions
(See also the General Conditions applicable to all Sections of this Policy)
You agree to give the Company such information and co-operation as the Company may reasonably require in defence or investigation of any actual or
alleged Wrongful Act which could give rise to a claim under this Policy.
section 2 – employment disputes
(This is a claims made and notified Section)
the cover
The Company will indemnify the Insured against all claims first made against them by any current, former or prospective Employees for Damages
during the Period of Insurance and notified to the Company during the Period of Insurance alleging any breach of any Employment Contract, the Privacy
Act 1993 and/or the Human Rights Act 1993 which arise by reason of any acts, errors or omissions as employer or prospective employer on the part of
the Insured or of any person now or previously employed by the Insured subject to the Limit of Indemnity. The Company will also pay reasonable costs
and expenses incurred with its prior written consent in the investigation, defence, negotiation, arbitration or settlement of any such claim PROVIDED
THAT the Company’s liability for such costs and expenses incurred with its consent shall form part of the Limit of Indemnity. All expenses incurred by
the Company pursuant to the engagement of professional advisers considered necessary by the Company to adequately determine the liability of the
Insured and to resolve the claim to the satisfaction of the Company shall also form part of the Limit of Indemnity. In respect of each claim made
against the Insured the Excess shall be borne by the Insured at their own risk. Where a claim is made by or on behalf of more than one Employee a
separate Excess shall apply in respect of each Employee’s claim.
extensions
Injunctions and Reinstatement Legal Costs
The Company will also indemnify the Insured for reasonable legal costs and legal expenses incurred with its prior written consent in the defence or
settlement of any claim against the Insured by any current, former or prospective Employees seeking either an Injunction, Reinstatement or an order
from the Complaints Review Tribunal or any other Court or Tribunal authorised to make orders under the Human Rights Act 1993, in relation to any
acts, errors or omissions as employer or prospective employer on the part of the Insured or of any person now or previously employed by the Insured.
PROVIDED THAT the Company will not indemnify the Insured for the costs of complying with any Injunction, any order for Reinstatement or with any
order of the Complaints Review Tribunal or any other Court or Tribunal authorised to make orders under the Human Rights Act 1993 or the Privacy Act
1993.
Dishonest Employees
The Company will also indemnify the Insured for any claim made against it by any current, former or prospective Employees arising from actual or
alleged dishonest, fraudulent, criminal, deliberate or malicious acts or omissions as employer or prospective employer on the part of any person now or
previously employed by the Insured. PROVIDED THAT the Company will not indemnify the Insured where the Insured either condoned or authorised, or
could reasonably have suspected or discovered or ought reasonably to have suspected the dishonest, fraudulent, criminal, deliberate or malicious acts
or omissions.
definitions
“Employment Contract” means any contract or agreement of service between the Insured and any Employee covered by the Employment Relations
Act 2000 but shall not include any contract for the provision of services
“Damages” shall mean any claim by a current, former or prospective Employee for compensation pursuant to:
(a) the Employment Relations Act 2000;
(b) the Privacy Act 1993;
(c) the Human Rights Act 1993; but shall not mean any fine, penalty, or injunctive remedy or costs awarded or incurred in relation to any fine,
penalty or injunctive remedy.
“Employee” shall mean a person employed and working in New Zealand pursuant to a contract of service between him or her and the Insured covered
by the Employment Relations Act 2000. It shall not include any person employed pursuant to a contract for services
“Remuneration” shall mean wages, salary, holiday pay, allowances (whether reimbursing or otherwise) benefits and all other emoluments.
“Reinstatement” shall mean the restoration of an Employee to a position pursuant to an order under section 40(1)(b) of the Employment Relations
Act 2000.
“Injunction” shall mean an interim or permanent order of the Employment Tribunal, Employment Court, District Court or High Court:
(a)
that an Employee be reinstated to a position with the Insured that he or she formerly occupied, or;
(b) restraining the Insured from instituting or continuing disciplinary or dismissal procedures
exclusions
This Agreement shall not indemnify the Insured in respect of any claim:
(a)
for breach of copyright design or patent or for misuse of confidential information PROVIDED THAT this exclusion shall not apply to claims by
current, former or prospective Employees for breaches of the Privacy Act 1993;
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(b)
directly or indirectly caused or contributed to by or arising from the dismissal or disciplining of or manner of dealing with any Employee unless
before that dismissal or disciplining of or manner of dealing with such an Employee occurred the Insured obtained and acted in accordance with
the advice of the Company or of an employment law practitioner whose engagement to act in that matter has been approved by the Company in
writing PROVIDED ALWAYS that the Insured shall first bear the Excess stated in the Schedule including legal fees and related expenses incurred
with the consent of the Company once a grievance has been submitted or proceedings issued;
(c)
for any legal fees or related expenses incurred as a result of obtaining legal advice prior to the submission of a grievance to or the issue of
proceedings against the Insured (whichever shall be first);
(d)
for any Remuneration payable under an Employment Contract including any failure to pay compensation or adequate compensation on termination
of employment;
(e)
arising out of a breach or alleged breach by the Insured of the Health and Safety in Employment Act 1992 or any replacement or amending
legislation which results in a prosecution by the Department of Labour;
(f)
arising from any breach of Employment Contract committed or allegedly committed by the Insured or any claim brought against the Insured
outside New Zealand jurisdiction PROVIDED THAT this Exclusion is not applicable to breaches committed or allegedly committed by the Insured
against any Employee during any trip outside New Zealand of less than 30 consecutive days;
(g)
for the costs incurred by the Insured in complying with any Injunction or any order for Reinstatement of any Employee or with any order of the
Employment Tribunal, Employment Court, Complaints Review Tribunal or any other Court or Tribunal authorised to make orders under the Human
Rights Act 1993, the Employment Relations Act 2000 or the Privacy Act 1993;
(h)
arising from allegations that the Insured has locked out any Employee;
(i)
arising from any circumstance notified under the Policy where 2 years or more have elapsed since notification and no actual claim has been made
against the Insured within that time.
(j)
Payable under Sections 1, 3, 4, 5, 6 or 7
This Section shall not indemnify the Insured in respect of any breach of any Employment Contract committed or alleged to have been committed prior
to the Retroactive Date stated in the Schedule.
conditions
(See also the General Conditions applicable to all Sections of this Policy)
Irrespective of whether the amount of any claim is likely to be within the Excess the Insured shall give written notice to the Company immediately it
becomes aware of any circumstance which may give rise to an employment dispute, including but not restricted to:
(a)
concerns about competence or performance;
(b)
the institution of disciplinary investigations;
(c)
allegations concerning harassment (sexual or otherwise);
(d)
any investigation by the Human Rights Commission or the Privacy Commissioner;
(e)
the institution of any redundancy procedures or discussions;
(f)
any intention to change contracts from collective to individual;
(g)
any intention to advertise a position held by an existing staff member whether temporary or part-time;
(h)
any intention not to appoint any applicant who has claimed priority rights by reason of redundancy or parental leave provisions or otherwise;
(i)
receipt of any actual or threatened claim or grievance or threat thereof by any former, current or prospective Employee again st it or its Employees
and shall immediately thereafter obtain and act in accordance with the advice of the Company or of an employment law practitioner whose
engagement to act in that matter has been approved by the Company in writing.
section 3 – public liability
the cover
(Under this Section the term “You” shall also include an Insured Person.)
Liability
The Company will pay to or on Your behalf all sums which the You become legally liable to pay by way of compensation in respe ct of Personal Injury
(including Punitive and/or Exemplary Damages) or Property Damage happening during the Period of Insurance caused by an Occurrence in connection
with Your Business. Under this Section cover for Punitive and/or Exemplary Damages is limited to claims arising from Personal injury sustained in New
Zealand during the period of Insurance which was caused by an Occurrence that arose out of the conduct of your Business in New Zealand PROVIDED
THAT the Personal Injury sustained was a Personal Injury within the meaning ascribed to those words in the Injury Prevention, Rehabilitation, and
Compensation Act 2001 or any replacement or amending legislation and in respect of which injury that Act provides cover.
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policy
Legal Costs and Expenses
The Company will also cover You for Legal Expenses which You incur with Our written consent and the costs of any Legal Expenses which any claimant
is entitled to recover from You. These amounts will be paid in addition to the Limits of Indemnity shown in the Schedule.
limit of indemnity
The maximum amount the Company will pay for any claim or any series of claims for Personal Injury and/or Property Damage caused by or arising out
of one Occurrence shall not exceed the Limit of Indemnity shown in the Schedule. All Personal Injury and Property Damage from continuous or
repeated exposure to substantially the same general conditions shall be treated as arising out of one Occurrence. Our total aggregate liability during
the Period of Insurance for all claims arising out of Your Product shall not exceed the Limit of Indemnity specified in the Schedule.
extensions
Forest & Rural Fires Act
The Company will cover you for amounts that You become liable to pay for costs imposed on You by a Fire Authority under the Forest and Rural Fires
Act 1977. The Company will not cover You for:
(a) levies payable under Sections 45, 46 and 46a;
(b) more than $250,000 Any One Period Of Insurance.
Vicarious Liability
Where You authorise an Employee to use any motor Vehicle under his or her control on Your behalf in New Zealand and damage occurs to the property
of others, the Company will pay for damage for which You are legally liable. This extension does not cover:
(a) Property belonging to You;
(b) Property being conveyed by or loaded into or unloaded from the Vehicle;
(c) Liability arising out of the use of rental Vehicles or Vehicles owned by You;
(d) Property belonging to or under the control of the Employee concerned.
Landlord’s Liability
The Company will indemnify the Insured in respect of Personal Injury or Property Damage arising from the Insured’s legal ownership, but not physical
occupation, of any premises.
Tenant’s Liability
The Company will indemnify the Insured in respect of Property Damage to premises (including landlord’s fixtures and fittings) leased or rented, but not
wholly owned, by the Insured.
exclusions
(See also the General Exclusions applicable to all Sections of this Policy)
This Section does not cover liability in respect of:
Injury to Employees
(a) Personal Injury to any person arising directly or indirectly out of or in the course of their employment in Your Business;
(b) any obligation for which You may be held liable under the Injury Prevention, Rehabilitation, and Compensation Act 2001 or any amending or
replacement legislation;
(c) the provisions of any workers' compensation legislation or any industrial award, employment contract, agreement or determination.
Property in Custody or Control
Property Damage to:
(a) any property owned by or leased or rented to You, or any property in Your physical care, custody or legal control;
(b) any property in Your physical care for any amount in excess of $50,000;
(c) Vehicles other than those parked in any Early Childhood Centre car park;
(d) Employees’ property, goods, equipment, merchandise and property.
Aircraft
an Occurrence arising directly or indirectly from any aircraft or aerial device.
Watercraft
an Occurrence arising directly or indirectly out of the use of any Watercraft exceeding 10 metres in length.
Vehicles
an Occurrence arising directly or indirectly from any Vehicle when it is being used as a Vehicle required by law to be regist ered for road use and the
Vehicle is owned by You or in Your care, custody or control. But this Exclusion does not apply to Personal Injury or Property Damage arising out of the
loading or unloading of any Vehicle or by the use of the Vehicle as an item of plant
Professional Liability
breach of professional duty but this exclusion does not apply to the rendering of or failure to render professional medical advice by Medical Persons
employed by You to provide first aid and other medical services at Your premises, but no cover is provided where the services are reimbursed by a
Regional Health Authority under a contract between them and You.
Libel and Slander
the publication or utterance of libel, slander or other defamatory or disparaging material:
(a) made prior to the commencement of this Period of Insurance, or
(b) made by or at Your direction with knowledge that it is false, or
(c) related to advertising, broadcasting or telecasting activities conducted on Your behalf.
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childcare combined liability
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Territorial Limits
(a) Claims made and actions instituted and/or;
(b) judgements, awards or settlements and/or;
(c) legal costs and expenses; made within countries which operate under the laws of the United States of America or Canada (or to any order made
anywhere in the world to enforce such judgement, award, settlement or liability in whole or in part). But this exclusion does not apply to liability
arising from Personal Injury or Property Damage caused by and arising out of Your business visits to the United States of America or Canada or to
a country which operates under the laws of the United States of America or Canada.
Faulty Workmanship
The cost of rectifying faulty workmanship or performing, completing, correctly or improving any work undertaken by You.
Punitive and/or Exemplary Damages - Indemnity for Personal Injury
(a) any liability for Punitive and/or Exemplary Damages for Personal Injury arising from trespass to the person, assault, battery, false imprisonment,
intentional physical harm, malicious prosecution, sexual harassment or sexual abuse;
(b) more than $1,000,000 inclusive of costs in Any One Period Of Insurance that are payable under Sections 1, 2, 4, 5, 6 or 7.
section 4 – fidelity guarantee
the cover
The Company will pay You up to the Limit of Indemnity stated in the Schedule, for any loss of money or other personal property which arises out of a
dishonest act committed by one or more of Your Employees and which You discover and notify to the Company during the Period of Insurance Cover
includes property belonging to You or in which You have a pecuniary interest, or for which You are legally liable. Cover includes PTA funds and property.
Reimbursement of Investigation Costs
The Company will reimburse You to an amount not exceeding $25,000 or ten (10) percent of any claim paid under this Section, whichever is the lesser,
for the fees You have paid to any external auditors, consultants, investigators, private enquiry agents and the like (but not to Employees) which are
reasonable and necessary to support a valid claim under this Section of the Policy provided that Our total liability under this Section of the Policy is not
otherwise exhausted
An Excess applies to both the fidelity claim and the investigation costs but the Company will not deduct more than one Excess per claim.
exclusions
(See also the General Exclusions applicable to all Sections of this Policy)
There is no cover under this Section for:
(a) acts committed prior to the commencement of this Policy except where previous continuous fidelity cover has been in force;
(b)
losses not discovered and reported to the Company within 12 months of the death, retirement, resignation or dismissal of the defaulting
Employee;
(c)
losses not discovered during the Period of Insurance or within 12 months after any date on which Your Policy expires and the Company do not
offer You renewal;
(d)
more than the Limit of Indemnity stated in the Policy Schedule even if act or acts of fraud or Dishonesty were committed during more than one
Period of Insurance;
(e)
any loss arising as a result of a cheque or similar instrument being signed by an authorised signatory that does not include details of the payee or
the amount payable in words and figures;
(f)
any loss where the proof is revealed solely by an inventory computation or a profit and loss computation;
(g)
any loss arising from any act or acts of fraud or Dishonesty committed by an Employee after You have knowledge or information of any act or acts
of fraud or Dishonesty by such Employee or reasonable cause for suspicion of any such act or any want of integrity on the part of such Employee
whether committed whilst in Your employ or earlier;
(h)
any consequential loss whatsoever;
(i)
that are payable under Sections 1, 2, 3, 5, 6 or 7.
conditions
(See also the General Conditions applicable to all Sections of this Policy)
(a)
You must make reasonable enquires as to the honesty and good character of each Employee prior to employing them and may be asked to satisfy
the Company that such enquires have been made.
(b)
If the Company require, You must use all diligence in prosecuting or assisting to prosecute any person for any Criminal Act for which You have
made a claim under this Policy and shall give all necessary information to enable the Company to sue them to obtain reimbursement.
(c)
If Your loss under this Section exceeds the Limit of Indemnity stated in the Schedule, You shall be entitled to all recoveries from any Employee on
account of such loss until fully reimbursed and any remainder shall be applied to reimbursing the Company.
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childcare combined liability
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section 5 – legal expenses
(This is a claims made and notified Section)
the cover
Under this Section the Company will pay:
(a)
Legal Expenses reasonably incurred by Your Appointed Representative including costs and expenses of witnesses;
(b)
Costs payable by You or any Insured Person following an award of costs;
(c)
Costs You or any Insured Person are required to pay following any arbitration or out of court settlement provided agreement to settle was reached
with Your Appointed Representative; in relation to Legal Proceedings, or threatened Legal Proceedings, that arise out of any act, circumstance or
dispute resulting from the performance of any Insured Person’s duties and obligations to the Organisation. The Company will only be liable to pay
or to continue to pay Legal Expenses incurred by You where You demonstrate to Our satisfaction that there are reasonable grounds for taking,
commencing, defending or continuing to participate in Legal Proceedings. Where we consider no such reasonable grounds exist, the Company will
provide You with reasons and in the event of a dispute will refer the same to an independent barrister for a second opinion, which opinion shall be
finally determinative.
limit of indemnity
The maximum amount the Company will pay under this Section of the Policy for Legal Expenses arising out of any or all of insured Occurrences, acts,
events, circumstances, omissions or disputes of which You have notified the Company during Any One Period is limited in the aggregate to the amount
specified in the Schedule.
extensions
Contract Cover
The Company will pay Legal Expenses for You to pursue or defend a dispute with:
(a) a manufacturer or supplier or a customer (including the Ministry of Education) relating to contracts with You for the purchase, sale, lease, hire,
hire purchase, repair or servicing of any goods or services;
(b) a services supplier in relation to contracts with You for the provision of professional or financial services;
(c) an insurer, other than the Company, in relation to the liability of that insurer to indemnify You under a contract of insurance.
(d) a landlord or tenant or other party over any dispute arising out of any lease, tenancy, occupancy agreement or licence, enter ed into by You as
landlord, tenant or occupier.
Property Cover
The Company will pay:
(a) for Legal Expenses You incur in bringing Legal Proceedings against any person in respect of any negligent act, error, omission, nuisance or
trespass committed by that person which causes or may cause physical loss or damage (including loss of use) to property or go ods owned or used
by You or for which You are responsible;
(b) for Legal Expenses incurred in defending Legal Proceedings brought by any person against You or any Insured Person where it is alleged such
person has suffered or may suffer physical loss or damage (including loss of use) to property or goods owned or used by him/her caused by the
negligent act, error, omission, nuisance or trespass by You or an Insured Person in circumstances where You are vicariously l iable for the action of
the Insured Person.
exclusions
(See also the General Exclusions applying to all Sections of this Policy)
The Company will not pay any Legal Expenses in relation to:
(a)
disputes relating to the amount of payment of or non-payment of rent or occupancy charge or fees;
(b)
the cost of preparation, negotiation or renegotiation of any agreement or contract;
(c)
any contract where the amount in dispute does not exceed $1,000;
(d)
a dispute in respect of the recovery of any money due from or to another party unless there is a genuine dispute as to the liability of such party to
account for such money;
(e)
a dispute in relation to a contract of insurance if the dispute relates solely to the amount of compensation or money payable under such contract;
(f)
any contract of employment.
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section 6 – statutory liability
(This is a claims made and notified Section)
the cover
(Under this Section the term “You” and “Your” shall also include an Insured human being.)
Under this Section the Company will pay:
(a)
any Fine payable by You upon Your conviction for an Offence;
(b)
Defence Legal Costs incurred in the defence of prosecutions or threatened prosecutions for any Offence other than in respect of Defence Legal
Costs provided for under (c);
(c)
Defence Legal Costs incurred in Your defence of a prosecution for any Offence where it is alleged that You have knowingly, wilfully or intentionally
taken an action or failed to take an action where You are subsequently Acquitted by a Court of having committed the Offence a lleged;
(d)
Civil Defence Legal Costs incurred by You in being represented at or in relation to:
i.
an inquiry into the cause of an Occurrence; and/or
ii.
an inquiry or settlement conference proceedings before a Complaints Review Tribunal; under any Act of Parliament, other than an Excluded
Act, where any liability arises out of an Occurrence.
PROVIDED THAT:
(a)
You first become aware of an Occurrence during the Period of Insurance; and
(b)
the Occurrence occurred subsequent to the Retroactive Date; and
(c)
You first notify the Company of the Occurrence in writing during the Period of Insurance, or within 21 days after the expiry of the Policy
limit of indemnity
Our liability to pay for all claims under this Policy is limited in the aggregate to the amount specified in the Policy Schedule applicable for the Period of
Insurance within which the notification of the Occurrence was made. The Company will not pay more than the Limit of Indemnity stated in the Po licy
Schedule even if the Occurrence is alleged to have taken place over more than one Period of Insurance.
exclusions
(See also the General Exclusions applying to all Sections of this Policy)
The Company will not pay for Fines, Defence Legal Costs or Civil Defence Legal Costs in respect of:
(a)
a prosecution for any Offence which has resulted from Your deliberate disregard to comply with any of the provisions of any Act in respect of which
You are alleged to have breached;
(b)
Your prosecution as principal for any Offence which has resulted from Your instruction to another person to discharge one or more of Your
obligations under any of the provisions of the Acts and failing to take all reasonable steps to ensure that other person properly discharged Your
obligations as so instructed;
(c)
Your prosecution for any Offence which has resulted from Your failure to comply with any lawful abatement notice or enforcement order,
improvement notice, prohibition notice or suspension notice, building consent, notice to rectify, compliance Schedule, gazette notice, or order
made by a Complaints Review Tribunal; other than Defence Legal Costs as provided for under clause (c) of “The Cover”.
The Company will not pay for:
(a)
the cost or payment of any enforcement order, remedial order or compliance with such order;
(b)
any daily continuing Fine imposed in relation to a daily continuing Offence where such daily continuing Fine is imposed in relation to a period of
time after You first received notice from the informant, or his employing body, of the intention to commence a prosecution in relation to that
Offence;
(c)
the cost or payment of any sum in respect of any; tax (penalty or otherwise), interest, compliance costs, duty or monetary obligation to the Inland
Revenue Department;
(d)
any pecuniary penalty, restitution, compensation or order for payment imposed by a court upon You pursuant to Sections 78, 80, 83 or 89(3)(b)
of the Commerce Act 1986;
(e)
any order for payment of costs made under the Commissions of Inquiry Act 1908.
(f)
any damages or compensation, not part of a Fine, imposed by a court having civil jurisdiction.
(g)
any claim payable under Sections 1, 2, 3, 4, 5 or 7.
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section 7 – employers liability
Including Punitive & Exemplary Damages (This is a claims made and notified Section)
Under this Section the Company agree to pay for all claims made against You (including the Legal Expenses of defending such claims) which You
become legally liable to pay as compensation and which are notified to the Company during the Period of Insurance as a result of any of Your
Employees sustaining Personal Injury in New Zealand after the Inception Date on which this Section of the cover first commenced which arises out of or
in the course of their employment in the Business
the cover
Under this Section the Company will pay for:
1.
Damages for which You are legally liable as a result of any claim made against You by an Employee, as a result of that Employee sustaining
Personal Injury in New Zealand that arose out of, or in the course of, such Employee's employment in the Business;
2.
Legal Expenses incurred where, in a claim made against You by an Employee in respect of Personal Injury suffered by him or her, You make an
application to the court to determine whether such claim is properly the subject of cover pursuant to the Injury Prevention, Rehabilitation, and
Compensation Act 2001 and its amendments.
3.
Exemplary Damages resulting from any claim made against You by an Employee as a result of that Employee sustaining Personal Injury in New
Zealand which arose out of, or in the course of such Employee's employment in the Business, including Legal Expenses incurre d in the defence of
such claims.
PROVIDED THAT:
(a) the Personal Injury sustained by the Employee was not a Personal Injury within the meaning ascribed to those words in the Injury Prevention,
Rehabilitation, and Compensation Act 2001 and in respect of which that Act does not provide cover; and
(b) the Personal Injury sustained arose out of an event circumstance accident or happening that occurred after the Inception Date of this Policy (or if
applicable, the Retroactive Date) and before the expiry of the Period of Insurance; and
(c) the claim in respect of such Personal Injury sustained, was first made against You during the Period of Insurance; and
(d) You notified the Company in writing of such claim prior to the expiry of the Period of Insurance, except that where You first become aware of a
claim made against You in the seven days prior to the expiry of the Period of Insurance and a renewal of this Policy is not effected, it shall have an
extended notification period of 30 days from the expiry of the Period of Insurance within which to notify the Company of such claim (time being of
the essence).
limit of indemnity
Where You first give the Company a notice of claim in Any One Period of Insurance, Our payment of (or Our obligation to pay) any Damages,
Exemplary Damages or Legal Expenses in any subsequent period, shall be treated for the purpose of the applicable Limits of Indemnity and Excess as if
they had been incurred in the period within which notice of the claim was first given.
Where:
(a) an Employee during a Period of Insurance, makes a claim against You for a Personal Injury; and
(b) You notify the Company of this claim during that Period of Insurance; and
(c) that Employee in a subsequent Period of Insurance makes further claims, or, alleges further and/or different injuries ("the additional claims") were
suffered in the event, circumstance, accident or happening which first gave rise to the original claim; then all such additional claims shall be
treated for the purposes of the applicable Limit of Indemnity and Excess as if they had been incurred in the Period of Insurance in which the first
notice of claim was originally made.
exclusions
(See also the General Exclusions applying to all Sections of this Policy)
This Section does not cover any claim:
1.
for damages and/or Exemplary Damages sought by, or awarded to, an Employee alleging trespass to the person, assault, battery, false
imprisonment, intentional physical harm, malicious prosecution, sexual harassment, or sexual abuse.
2.
as a result of Your Employee/s sustaining Personal Injury which arose out of Your wilfully intentional or deliberate conduct which You knew or
should have known could cause injury to that Employee;
3.
by an Employee as a result of that Employee sustaining Personal Injury which was caused by Your wilfully reckless and/or contumelious conduct.
4.
as a result of Your Employee(s) sustaining Personal Injury which arose out of Your failure to comply with any improvement, prohibition or
suspension notice issued to You or Your Employees under the Health and Safety in Employment Act 1992 or any replacement or amending
legislation.
5.
made against You by an Employee in respect of Personal Injury suffered by that employee as a result of You directing the Employee to undertake
activities otherwise than in the course of or in connection with the usual activities of Your Business.
6.
for liability made in any court outside New Zealand.
7.
in respect of Personal Injury suffered by an Employee which if made the subject of a claim under the Injury Prevention, Rehabilitation, and
Compensation Act 2001 would not be eligible for cover under that Act.
8.
Payable under Sections 1, 2, 3, 4, 5 or 6.
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childcare combined liability
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general definitions
“We”, “Our”, “the Company” means Vero Liability Insurance Limited.
“You” means the Organisation shown in the Schedule. The word “Your” may also be used to refer to You.
“Acquitted by a Court” means, where You have completed a defended hearing of a prosecution for one or more of the Offences set out in Section 6,
the delivery by the presiding judge of either, a dismissal of the information(s) at the conclusion of the prosecution case, or a verdict of not guilty at the
conclusion of the defended hearing (but shall not include, other than with Our prior consent, a dismissal pursuant to a plea bargain where multiple
informations have been laid).
“Any One Period Of Insurance” means the individual periods of time specified in either the Schedule of this Policy or any renewal Schedule(s) of this
Policy, as the Period Of Insurance.
“Appointed Representative” means any solicitor, firm of solicitors or appropriately qualified and experienced person appointed to act on Your behalf.
“Business” means the control and management of Your Organisation by or through its Board of Trustees or Directors, specifically in relation to:
(a)
the implementation and delivery of Te Whariki curricula set by the Ministry of Education, and the establishment and delivery of new
curricula initiatives in line with national guidelines and/or the school charter; and/or
(b)
the provision of child care facilities for pre-school children
under license provided in accordance with the Education Act 1989.
“Civil Defence Legal Costs” means the legal costs and expenses and/or witness costs and expenses incurred in investigating and/or being
represented at:
(a) an inquiry or settlement conference provided that the Company will not indemnify You in relation to any order for payment of costs by You under
Section 11 of the Commissions of Inquiry Act 1908;
(b) proceedings before a Complaint Review Tribunal.
“Criminal Act” means an alleged act or omission for which You can be prosecuted under the Crimes Act 1961, Summary Offences Act 1981, Misuse of
Drugs Act 1976, Transport Act 1962 and any amendments of these Acts.
“Damages” means monies ordered to be paid or agreed to be paid pursuant to any judgement (or agreed to be paid pursuant to a settlement) in
respect of an indemnified claim for damages (including any legal costs, court costs, witnesses or experts costs, and interest awarded as part of that
judgement or agreed to form part of a settlement agreement) and interest accruing against You after the date of entry of judgement and until the date
the Company pay, tenders or deposits in court the judgement sum or such part of that judgement sum as is required to satisfy Our liability to You in
terms of the relevant Limit of Indemnity specified for such type of claim in the Policy Schedule.
“Defence Legal Costs” means the legal costs and expenses and/or defence witness costs and expenses and/or defence expert costs and expenses
incurred in investigation and/or defending any prosecution or threatened prosecution alleging the commission of an Offence.
“Dishonesty” means and includes, but not by way of limitation, any larceny, theft, embezzlement, forgery, misappropriation, wrongful abstraction,
wilful misapplication or other fraudulent or dishonest act or acts.
“Early Childhood Centre” means as defined by the Education Act 1989.
“Employee/s" means:
(a) any person You employ under a contract of service
(b) any person while hired or seconded from any other party into Your service whom You have the right at all times to govern, control and direct in
the performance of their work in the course of Your Business, but shall not include any broker, factor, commission agent, consignee, contractor or
other agent.
(c) Employees shall also include, without limiting the generality of the foregoing, members of the board of trustees, whether elected or co-opted and
voluntary workers including volunteers acting for or on behalf of any fund raising group associated with and authorised by the Early Childhood
Centre, unpaid assistants, teachers, religious assistant teachers and aides of any kind.
“Excess” means the first amount of any claim that You must pay and is stated in the Schedule.
“Excluded Acts” means the Arms Act 1983, Aviation Crimes Act 1972, Crimes Act 1961, Proceeds of Crimes Act 1991, Summary Offences Act 1981,
Transport Act 1962, Transport (Vehicle and Driver Registration and Licensing) Act 1986 and any statutory amendment, or re-enactment of such Acts.
“Fine” means any Fine, infringement fee, court costs, witness expenses or solicitor's costs, ordered by a court to be paid by You upon Your conviction
of an Offence for which the Company may legally indemnify You. This does not include a Fine imposed pursuant to the Health and Safety in
Employment Act, but this Definition is extended to include a sentence of reparation imposed following a conviction under that Act.
“Inception Date” means the commencement date of the first annual Period of Insurance.
“Indemnity Provisions” shall mean all or any indemnities/exoneration’s against personal liability given to You by the provisions of the Education Act
1989 or Education (Early Childhood) Regulations Act 1998 or conferred upon You in respect of duties in connection with the board of trustees by the
operation of law.
“Insured Person” means members of the board of trustees and early childhood centre trustees or directors for the time being of the Early Childhood
Centre designated in the Schedule, commissioners appointed in place of early childhood centre trustees, the public trustee (in respect of any property
vested in him pursuant to the Public Trustee Act), Employees and any other parties (except the Ministry of Education), for whom the responsibility for
Early Childhood Centre property or Early childhood Centre administration is proposed or may be created by the Education Act 1989 or Education (Early
Childhood) Regulations Act 1998.
“Legal Expenses” means:
(a) Legal fees, costs and disbursements reasonably incurred by Your Appointed Representative and includes costs and expenses of witnesses.
(b) Costs payable by You following an award of costs in any civil claim or employment dispute but excludes any costs or expenses which You are
ordered to pay by a court of criminal jurisdiction.
(c) Costs which You are required to pay following any arbitration or out of court settlement provided agreement to settle was reached with the
approval of Your Appointed Representative.
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childcare combined liability
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(d)
The wages or salary costs paid by You to Employees during their absence from work to attend any court or tribunal hearing of any Legal
Proceedings.
“Legal Proceedings” means:
(a) civil actions or criminal prosecutions brought or threatened to be brought against You; and/or
(b) civil actions brought by You.
“Medical Persons” means any legally qualified medical practitioner, legally qualified registered nurse, dentist and first aid attendant.
“Occurrence” means any event (including continuous or repeated exposure to substantially the same general conditions), act, circumstance or
omission in the course of Your Business that gives rise, or may give rise to:
(a) a prosecution, inquiry, settlement negotiation or proceeding
(b) Personal Injury, or Property Damage, neither expected nor intended by You in respect of which You are entitled to be indemnified.
“Offence” means any information alleging You have committed an Offence under any Act of Parliament, other than an Excluded Act, for which You are
liable to a Fine if convicted.
“Organisation” means the Early Childhood Centre specified in the Schedule.
“Period of Insurance” means the period commencing from the Inception Date of the annual period specified in the Policy Schedule until the expiry of
that period, or if renewed, the expiry of that renewed annual period(s).
“Personal Injury” means:
(a) bodily injury (which expression includes death, illness and care resulting therefrom), disability, shock, fright, mental angu ish or mental injury;
(b) false arrest, wrongful detention, false imprisonment or malicious prosecution or humiliation;
(c) a publication or utterance of a libel or slander or other defamatory or disparaging material;
(d) wrongful entry or eviction or other invasion of the right of privacy;
(e) assault and battery not committed by or at Your direction unless committed for the purpose of preventing or eliminating danger to persons or
property.
“Policy” means:
(a) the terms in this document; and
(b) the special conditions referred to in the Schedule, if any; and
(c) any endorsement attaching to and forming part of this Policy either at inception or during the Period of Insurance; and
(d) the Proposal, if any.
“Pollutants” means any solid, liquid, gaseous or thermal irritant or contaminant, including but not limited to smoke, vapour, soot, fumes, acid, alkalis,
chemicals and waste. Waste includes material to be recycled, reconditioned or reclaimed.
“Product” means any goods, products, including labels, instructions for use and advice and property sold, supplied or distributed by You (including
their containers) after they have ceased to be in Your possession or under Your control.
“Property Damage” means:
(a) physical injury to or destruction or loss of tangible property including the loss of use thereof at any time resulting therefrom, or
(b) loss of use of tangible property which has not been physically injured or destroyed provided such loss of use is caused by an Occurrence.
“Punitive and/or Exemplary Damages” means monies You are ordered to pay as punitive and/or exemplary damages (including any legal costs,
court costs, witnesses or experts costs, and interest awarded as part of that judgement or agreed to form part of a settlement agreement);
“Retroactive Date” means the date specified as the Retroactive Date in the Schedule of the Policy.
“Schedule” means the current Schedule of insurance issued by the Company or on Our behalf.
“Vehicle” means any type of machine on wheels or on self laid tracks made or intended to be propelled by other than manual or animal power and any
trailer or other attachment made or intended to be drawn by any such machine.
“Watercraft” means any vessel, craft or thing made or intended to float on or in or travel on or through water.
general exclusions
Note: Each Section of this Policy also has its own Exclusions as well as these General Exclusions. Where these General Exclusions are
inconsistent with the Exclusions of each separate Section, the Exclusions of each Section shall take precedence over these Ge neral
Exclusions
1.
If an incident or dispute which might result in a claim under this Policy arises between the board of trustees and any Insured Person, then this
Policy will only protect the board of trustees and early childhood centre trustees for the time being or commissioners appointed in place of early
childhood centre trustees.
2.
This Policy shall not protect You against:
(a) any alleged acts, events, circumstances or omissions where such alleged acts, events, circumstances or omissions giving rise to Legal
Proceedings were deliberate or resulted from Your deliberate disregard of Your duty to comply with a statutory provision;
(b) any Fines other than those that are insured in Section 6 - Statutory Liability;
(c) the breach of any obligation or the failure to arrange adequate insurance coverage;
(d) any Legal Expenses, if the Insured Person is otherwise entitled to be represented in a Legal Proceeding by virtue of the Insured Person’s
membership of any professional association or organisation;
(e) any Legal Expenses incurred by You in claiming or counterclaiming against or defending a claim made or against any other member of Your
board of trustees or Manager(s);
(f) liability You may have which is caused by any Insured Person who commits or condones any dishonest, fraudulent or malicious act or
omission unless legal process shall establish that any such acts or omissions committed or condoned with actual dishonest, fraudulent, or
malicious purpose or intent were not material to the cause of action. PROVIDED ALWAYS THAT the dishonest, fraudulent or malicious act of
any Insured Person shall not be imputed to any other Insured Person or to the named Organisation for the purpose of this clause;
(g) any circumstance or Occurrence prior to the commencement of the Period of Insurance of which You are aware or ought reasonabl y to be
aware at the inception of this insurance which may give rise to a claim against You whether notified under any other insurance or not;
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(h)
(i)
any cost of any legal action or litigation brought in a court of law outside of New Zealand;
any liability incurred arising from the sale and/or promotion of travel and/or financial services products.
3.
This Policy shall not protect You in respect of Liability directly or indirectly caused by or arising from:
(a) any actual or alleged liability whatsoever for any claim or claims in respect of losses directly or indirectly arising out of, resulting from, or in
consequence of, or in any way involving asbestos, or any materials containing asbestos or whatever form or quantity;
(b) Personal Injury or Property Damage caused by or arising out of the discharge, dispersal, release or escape of Pollutants into or upon land,
the atmosphere, or any water course or body of water, unless the discharge, dispersal, release or escape is sudden, identifiable, unexpected
and unintended from Your standpoint and takes place in its entirety at a specific time and place; Any costs and expenses incurred in the
prevention, removing, nullifying or clean-up of such contamination or pollution are also excluded but this Exclusion 3(b) shall not apply to
removal, nullifying or clean-up expenses only, which are consequent upon a sudden, identifiable, unexpected, unintended happening from
Your standpoint taking place in its entirety at a specific time and place which results in Personal Injury and/or Property Damage.
4.
Contractual Liability
This Policy shall not protect You for liability You have assumed under any contract or agreement except to the extent that such liability would
have been implied by law. However, this Exclusion shall not apply to:
(a) liability assumed by You under any contract or lease of real or personal property;
(b) liability assumed by the You under a warranty of fitness or quality as regards Your Products or a warranty that work performed by or on Your
behalf will be done in a workmanlike manner;
(c) those written contracts specified in the Schedule;
(d) contracts covered by Section 2 – Employment Disputes;
(e) contracts covered by Section 5 - Legal Expenses.
5.
E-Commerce
5.1 Personal Injury or Property Damage arising, directly or indirectly, out of, or in any way involving the Insured’s “Internet Operations”. This
exclusion does not apply to Personal Injury or Property Damage arising out of any material which is already in print by the manufacturer in
support of its product, including but not limited to product use and safety instructions or warnings, and which is also reproduced on its site. For
the purposes of this Exclusion “Internet Operations” means the following:
(a) Use of electronic mail systems by the Insured or the Insured’s employees, including part-time and temporary staff, contractors and others
within the Insured’s organisation;
(b) Access through the Insured’s network to the world wide web or a public internet site by the Insured’s employees, including part-time and
temporary staff, contractors and others within the Insured’s organization
(c) Access to the Insured’s intranet (meaning internal company information and computing resources) which is made available through the
world wide web for customers of the Insured or others outside the Insured’s organisation; and
(d) The operation and maintenance of the Insured’s web site. Nothing in this exclusion shall be construed to extend coverage under this Policy
to any liability which would not have been covered in the absence of this exclusion.
5.2 Property Damage to computer data or programs and their storage media arising directly or indirectly out of or caused by, through or in
connection with:
(a) the use of any computer hardware or software;
(b) the provision of computer or telecommunication services by the Insured or on the Insured’s behalf;
(c) the use of computer hardware or software belonging to any third party, whether authorised or unauthorised including damage caused by any
computer virus.
6.
Terrorism
Loss, damage, death, injury, illness, cost or expense of whatsoever nature directly or indirectly caused by, resulting from or in connection with
any Act of Terrorism regardless of any other cause or event contributing concurrently or in any other sequence to the loss. For the purpose of this
Exclusion an “Act of Terrorism” means an act, including but not limited to the use of force or violence and/or threat, of any person or group(s) of
persons, whether acting alone or on behalf of or in connection with any organisation(s) or government(s) which from its nature or context is done
for, or in connection with, political, religious, ideological, ethnic or similar purposes or reasons, including the intention to influence any
government and/or to put the public, or any section of the public, in fear. This Policy also excludes loss, damage, death, injury, illness, cost or
expense of whatsoever nature directly or indirectly caused by, resulting from or in connection with any action taken in controlling, preventing,
suppressing or in any way relating to any Act of Terrorism.
general conditions
Note: Each Section of this Policy also has its own Specific Conditions as well as these General Conditions. Where these General
Conditions are inconsistent with the Conditions of each separate Section, the Conditions of each Section shall take precedence over
these General Conditions.
1.
Misrepresentation and Non-Disclosure
If:
(a) You fail to disclose any material facts which You were under a duty to disclose to the Company; or
(b) You make a misrepresentation to the Company before the contract of insurance was entered into; and
(c) as a consequence the Company would not have entered into the contract for the same premium and on the same terms and conditions
expressed in this Policy, then
i.
our liability in respect of any claim shall be reduced to an amount to place the Company in the same position in which the Company
would have been placed if the failure to disclose had not occurred or the misrepresentation had not been made; or
ii.
if the non-disclosure or misrepresentation was fraudulent, the Company may avoid this Policy.
2.
Your Duties in the Event of a Claim
If You become aware of any circumstances which may give rise to a loss You must:
(a) promptly take all reasonable steps to prevent further loss, damage, or liability;
(b) inform the Police as soon as possible if any property is lost or if theft, fraud or Dishonesty or malicious damage is suspected;
(c) give the Company immediate notice in writing of:
i. any claim, writ, summons, proceedings, impending prosecution, inquest and provide the Company with all the information which relates
to the event;
ii. the receipt of notice from any person of an intention to make a claim against You;
iii. any circumstance of which You become aware which may give rise to a claim or claims under this Policy;
(d) send the Company a completed claim form, written details of the injury, loss or damage, copies of notices, statements of claim and any
other legal documents You receive in connection with the claim;
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childcare combined liability
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(e)
(f)
not without Our written consent make any admission of liability, offer, promise, payment or settlement in connection with or in relation to
any prosecution or claim; irrespective or whether the quantum is likely to be within or above the amount of the Excess specif ied in the Policy
Schedule;
do Your best to preserve any damaged property which the Company may need as evidence in connection with any claim and give Our
assessor any opportunity to view any damage. Once You have notified the Company, the Company will treat any claim which subsequently
arises as a claim made within the Period of Insurance.
3.
Costs and Defence Provisions
You must not incur any costs, charges or expenses in the defence of any claim without Our written consent, which consent shal l not be
unreasonably withheld. However, if You refuse to consent to any settlement recommended by the Company and elect to contest or continue any
Legal Proceedings, Our liability shall not exceed the amount for which we could have settled (less the Excess specified in the Schedule) (subject
to the aggregate Policy limit); plus the costs and expenses incurred up to the date of such refusal.
4.
Claims Co-operation
You must do everything that is reasonable to:
(a)
prevent losses occurring;
(b)
minimise the effect of any loss which has occurred;
(c)
help the Company defend claims brought against You. Once You have notified the Company of a claim, the Company may take whatever
action the Company consider appropriate to protect Your position in respect of any actual or potential claim against the You and Our action
shall not be regarded as in any way prejudicing Our position under the Policy. Our action in protecting your position does not mean that the
Company have confirmed that the Policy covers the claim. Appointed Representatives retained by the Company to act on Your behalf in
relation to any claim against You shall at all times be at liberty to disclose to the Company any information obtained in the course of acting
for You and You agree to waive all claim to legal professional privilege which might otherwise have applied to such information. In the event
that you receive any notice alleging the commission of a specified Offence You shall promptly take at Your expense all reasonable steps to
prevent its continuation.
5.
Subrogation
Once the Company have accepted Your claim under this Policy the Company may:
(a) require You to take action to enforce any rights You have to recover Your loss;
(b) choose to exercise Our right of subrogation for the total amount of Your loss and take action Ourselves in Your name;
(c) require that You assign Your rights to the Company.
Any
(a)
(b)
(c)
such amount so recovered shall be apportioned in the following order of priority:
First to the uninsured proportion of the loss.
Second to reimburse the Company to the extent of Our actual payment under the Policy.
Third, if any balance then remains it shall be applied to reimburse You or any other Insurer as their interest may appear. You must take all
steps to recover from any other party to a Legal Proceeding the costs, fees, expenses and/or disbursements awarded to You by a court or
tribunal or incorporated into any settlement and pay the same to the Company. Such sum will be deducted from the Legal Expenses for
which indemnity is provided under this Policy. You agree that You will not waive Your rights of recovery against any person or corporation
and undertake to do and concur in doing all things which in Our view are necessary to take action against any person, persons or
corporation who may have caused or contributed to the cause of any claim brought by or against You. The Company will waive Our rights of
subrogation against any or all trustees, officers or Employees, unless the claim has been brought about or contributed by any dishonest,
fraudulent, criminal or malicious act or omission by any of them.
6.
Discharge of Liabilities
At any time the Company may pay to You the amount of the Limit of Indemnity or any lesser amount for which the claim or claims arising from
one event can be settled and upon such payment Our liability for claims arising from the event will cease except for costs incurred by You with
Our written consent prior to the date of such payment. If You disagree with Our intentions as to the manner or conduct of the defence of a
prosecution, an inquiry, a settlement conference, or proceedings, the Company shall provide You in writing with Our reasons as to the particular
manner or conduct the Company wish to follow and shall refer the same to an independent barrister for a final determination as to the
reasonableness of Our decision. Such independent determination shall be binding on You and the Company.
7.
Prejudice
Where breach or non-compliance with the General Conditions of this Policy prejudices the Company in relation to the handling of any claim which
in all other respects qualifies to be met under this Policy the Company may reduce Our payment to the amount the Company would have been
required to pay in the absence of such prejudice.
8.
Other Insurance
If in respect of any claim under this Policy You are entitled to claim under any other policy of insurance or funded scheme, whether held in Your
name or in the name of any other person or entity, the Company shall not be liable to pay or contribute to the claim.
9.
Jurisdiction For Disputes
If any dispute arises between You and the Company in relation to this Policy then that dispute will be subject to the laws of New Zealand and any
proceedings must be brought and heard in New Zealand.
10. Fraud
If any claim You make under this Policy is fraudulent (either in total or in part) or caused by Your wilful act or with Your connivance, the Company
may refuse to pay Your claim.
11. Changes in The Policy
No change in this Policy will be valid unless the Company agree to it in writing nor shall the requirements of any Section be deemed to be waived
unless the Company agree in writing.
12. Cancellation
This Policy may be cancelled
(a)
By You at any time by giving notice to the Company in writing stating when the cancellation shall be effective. After You have cancelled, a
percentage refund of premium for the current Period of Insurance will be allowed using Our short-term period rates for Our liability policies.
(b)
By the Company if You have failed to pay the premium:
i.
for renewal (It should be noted that this insurance expires at the end of the Period of Insurance stated in the Policy Schedu le.)
ii.
for alteration of this Policy and the Company may give You notice in writing of Our intention to cancel this Policy. The notice may be
delivered personally or posted by registered mail to Your last known postal address, or by facsimile transmission (fax). The
cancellation will take effect at 4pm on the 30th day after the notice has been delivered or posted.
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13. Goods and Services Tax
Where You are liable to pay tax under Section 5(13) of the Goods and Services Tax Act 1985 (or any statutory amendment or re -enactment of
the section or Act) on receiving any payment under this Policy (including any of its extensions), the Company will reimburse You for the cost of
that tax. This tax payment will be payable by the Company in addition to the Limit of Indemnity specified in the Policy Schedule.
14. Joint Insureds
Where claims are made against more than one person or Organisation in respect of the same event, the amount of any Excess and the Limit of
Indemnity for any one event will not exceed the amount specified in the Schedule regardless of the number of persons indemnified. Where the
Limit of Indemnity is insufficient to fully protect all persons and organisations entitled to protection under this Policy, it will apply in priority to the
named Organisation.
15. Validity
Should any Section of this Policy be declared or held invalid for any reason, such invalidity shall not effect the validity of the remaining Sections
which shall continue in full force and effect.
16. Excess and Aggregate Liability
Each claim is subject to an Excess shown in the Policy Schedule. The Company are only responsible to pay the difference between the amount of
the relevant Excess and the amount of the claim subject to the Limits of Indemnity and aggregates stated in the Schedule. Any Loss arising out of
any interrelated cause shall be deemed one Loss. You are required to reimburse the Company on demand for any amounts incurred by the
Company on Legal Expenses which by virtue of this Excess clause are Your responsibility.
17. Notices
(a) You must notify the Company in writing as soon as possible of every change materially varying any of the facts or circumstances existing at
the commencement of this insurance that shall come to Your knowledge;
(b) Any notice given in writing by the Company to the Organisation shall be deemed to be notice given to all parties and persons protected by
the Policy.
(c) You may advise the Company of material changes via Your agent or broker but this does not constitute notice to the Company until received
by the Company and agreed to by the Company in writing.
18. Continuity of Cover (applying to claims made Sections)
If any Section within this Policy is replacing any prior policy effected by You where there is no time gap between the prior policy ceasing and the
new cover starting, the Company agrees that the Company will pay for any loss which You discover after the commencement of this Section,
Provided:
(a) the Limit of Indemnity the Company provide shall form part of, and shall not be in addition to, the Limit of Indemnity stated in the Schedule;
(b) such loss would have been covered under this Policy/Section had this Policy / Section been in force when the acts or defaults causing such
loss were committed.
19. Disputes Tribunal
If any dispute or Legal Proceeding covered by this Policy involves less than $7,500 and is appropriate to be resolved in the Disputes Tribunal, You
agree to commence Legal Proceedings in that jurisdiction or move to have any proceedings commenced against You transferred to the Disputes
Tribunal for resolution.
20. Territorial Limits
This Policy applies in New Zealand only.
Vero Liability Insurance Limited
Private Bag 92055 Auckland New Zealand
Telephone 09 306 0350 Facsimile 09 306 0351
www.veroliability.co.nz
VL POL CROMBIE CHILDCARE-0706 (1)
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