1 We insure you for your liability for:

Physical loss of and damage to the following, and for resulting consequential loss: 

1.1 Cargo  

1.2 Your customer’s property (except ships)

1.3 Your customer’s ships 

2 We do not insure you under this clause for:

2.1 liabilities arising from cargo found to be missing on stocktaking, if you are unable to provide reasonable proof of the accident which caused the loss  

2.2 liabilities excluded at G1:2

2.3 your liability under 1.2 for loss/damage to your customer’s equipment which you lease for use in your insured services 

Qualifications

3 Valuable Cargo

3.1 We do not insure you for liabilities in respect of bullion, precious stones or cash/securities unless:

3.1.1 your customer did not inform you that you were handling these cargoes or

3.1.2 these cargoes were being handled at your insured location and you could not, in the circumstances, reasonably have known that you were handling these cargoes or that the cargoes were being handled.

3.2 In relation to the exception at 3.1, we will apply a limit of USD 1 million each accident and in the aggregate each account year

3.3 A limit of USD 1 million each accident and in the aggregate each account year applies to claims in respect of:

a. processed tobacco/tobacco products
b. bottled spirits
c. precious jewellery/precious metal 
d. valuable works of art
e. thoroughbred horses
f. computers/handheld electronic products/mobile telephones (and electronic components of these)

1 We insure you for your liability for financial loss: 

1.1 incurred by your customer arising from failure to perform your contractual obligations

1.2 arising from delay in performing your contractual obligations 

1.3 arising from delivery of cargo contrary to your contractual obligations
which is incurred by:

1.3.1 your customer or

1.3.2 the person entitled to delivery under a bill of lading or other contract of carriage or handling documentation

2 We do not insure you under this clause for:

2.1 your liability for consequential loss resulting from physical loss of or damage to cargo or other property

2.2 officials liability

2.3 your own financial loss 

Qualifications

3 Intentional or Reckless Conduct

The Directors may in their discretion reduce or reject a claim if you or your employee has acted (or failed to act) intentionally or recklessly. In exercising this discretion the Directors may, among other things, consider your corporate and compliance systems/procedures

4 References to N1

The following paragraphs of N1 also apply to this clause:

4.1 Stocktaking (N1:2.1)

4.2 Liabilities excluded at G1:2 (N1:2.2)

4.3 Valuable cargo (N1:3), save that the limits of USD 1 million stated at N1:3.2 and N1:3.3 are reduced to USD 100,000

5 Limit

Limit: USD 100,000 each accident and in the aggregate each account year

1 We insure you as stated below

1.1 We insure you for your liability for the following, including resulting consequential loss: 

1.1.1 physical loss of and damage to third party property

1.1.2 death, injury or illness of any third party

1.1.3 pollution 

1.2 We insure you for your liability to indemnify a third party for its liability for the following, including resulting consequential loss: 

1.2.1 physical loss of and damage to third party property

1.2.2 death, injury or illness of any third party except as at 1.2.3

1.2.3 death, injury or illness of your employee unless excluded at 2.1

1.2.4 pollution 

1.3 We insure an assured for liabilities directly to an employee of a joint assured  and conversely a joint assured for liabilities directly to an employee of the assured or another joint assured 

1.4 We insure you for your liability to indemnify:

1.4.1 a shipowner in respect of a liability under the 1969/1992 Civil
Liability Conventions (as amended)

1.4.2 the International Oil Pollution Compensation Fund in respect of a
liability under the 1992 Fund Convention (as amended)

2 We do not insure you under this clause for liabilities:

2.1 for injury to your employee (or to the spouse, child, parent or sibling of your employee) arising from and in the course of employment by you or of duties related to your business.

2.1.1 This exclusion (2.1) applies to:

a. your liability as an employer or in any other capacity
b. your obligation to share damages with or repay damages
to someone else

2.1.2 This exclusion (2.1) does not apply to liabilities which you assume
under an insured contract

2.2 arising from your obligation under a workers compensation, disability benefits, unemployment compensation or similar law

2.3 arising from ownership, lease or operation by you/your employee of a road vehicle which is required to be licensed

2.4 arising from an accident on a public road in USA/Canada or Mexico involving a trailer or chassis  

2.5 in respect of your owned or leased carrying equipment which we do not insure for loss/damage

2.6 as owner/lessee of land which is not an insured location - an insured location may be added subject to terms to be agreed, and to your giving us full details within 28 days of your first acquiring it

2.7 arising from erection or dismantling of handling equipment - unless for inspection, maintenance or repair (or movement which is not excluded under 2.8)

2.8 arising from movement of handling equipment - other than within the same terminal, port or depot

2.9 for physical loss or damage of your customer’s property and consequential loss arising from this

2.10 excluded at G1:2

2.11 in respect of cargo  

2.12 in respect of property which you own, rent or occupy

2.13 in respect of premises which you sell, give away or abandon - if the property damage arises out of any part of these premises. This exclusion (2.13) will not apply if the premises are your work and you never occupied or rented them (or held them for rental)

2.14 in respect of property leased to you (for example: equipment, land or buildings)

2.15 which are contractual liabilities to compensate someone else for physical loss or damage to your owned or leased property

2.16* in respect of property loaned to you

2.17* in respect of personal property in your care, custody or control

2.18* in respect of that particular part of real property on which you (or contractors/subcontractors working on your behalf) are performing operations - if the property damage arises out of those operations

2.19* in respect of that particular part of any property that must be restored or replaced because your work has been incorrectly performed on it *these exclusions (2.16-2.19) do not apply to liability assumed under a sidetrack agreement 

2.20 for any risk which is insured under N4

Qualifications

3 Contracts

With the exception of claims under 1.2, we only insure you for liabilities assumed in a contract if:

3.1 you would have the liability in the absence of the contract or

3.2 the liability is assumed in an insured contract, and then only if the accident occurs subsequent to execution of the contract. In this case legal costs incurred by a third party are covered if:

3.2.1 liability to the third party (or for its costs) is assumed in the same insured contract and

3.2.2 the costs are for the third party’s defence against a civil or alternative dispute resolution for damages covered by your insurance

4 Limits of Liability

4.1 In the event that it is held in any court or tribunal that anyone, other than the assured or a named joint assured or co-assured, is entitled to be insured  under this insurance, then the limit of liability for this insurance for such a person will not exceed the lesser of the minimum insurance requirements under the applicable law and the limit stated in your policy 

4.2 Claims under 1.4 are subject to a limit of USD 1 million each accident and in the aggregate each account year

5 Transfer of Interest in Equipment under Contract of Sale

We only insure you for liabilities in respect of equipment after your interest in it has been transferred under a contract of sale if:

5.1 we insured the equipment immediately before the transfer and

5.2 the contract of sale includes no warranty except that the equipment is as described and that the purchaser has quiet use 

6 Cross Liability

We insure the assured for liabilities to a co-assured/joint assured and conversely we insure a co assured/joint assured for liabilities to the assured or another co-assured/joint assured, as if separate polices had been issued to the assured, and each co-assured and joint assured. In no event will this paragraph (6):

6.1 increase any limit

6.2 provide cover for physical loss of or damage to or defect in property insured under this clause as your work or your product

6.3 provide cover which is otherwise expressly excluded in your policy  

7 Products & Completed Operations

We do not insure you for liabilities arising from the failure of your products or your work and arising:

7.1 from a mistake/deficiency in design or specification of the product or work, or in advertising materials or instructions which you prepare or develop or

7.2 other than from your direct negligence or

7.3 from your services as a building contractor, engineer or architect (or supervisor of these) or your services with regard to building construction or

7.4 from your manufacturing of products

8 Impaired Property & Property not physically Damaged

8.1 We do not insure you for damage to impaired property or property that has not been physically damaged arising from:

8.1.1 a defect, deficiency or dangerous condition in your product or your work

8.1.2 delay or failure by you (or anyone acting on your behalf) to perform a contract 

8.2 This exclusion does not apply to loss of use of other property arising from sudden and accidental physical damage to your product or your work after it has been put to its intended use

9 Recall of Products, Work & Impaired Property

We do not insure you for liabilities arising from loss of use, withdrawal, recall, inspection, repair, replacement, adjustment or disposal of the following which is withdrawn from the market because of a known/ suspected defect or dangerous condition:

a. your product
b. your work
c. impaired property

1 We insure you for:

1.1 The following, imposed on you by an authority, as a result of breach of regulations listed at 1.3:

1.1.1 Fines and other penalties, including confiscation 

1.1.2 Duty and sales/excise tax and similar fiscal charges

1.1.3 Costs  

1.2 Liability for financial loss incurred by a third party as a result of a liability specified at 1.1

1.3 The regulations referred to at 1.1 relate to:

1.3.1 import/export and carriage of cargo, conveyances or equipment 

1.3.2 immigration

1.3.3 safety at work, including corporate manslaughter and corporate homicide

1.3.4 security/anti-terrorism

1.3.5 pollution  

1.3.6 the following - to the extent that you are insured for services to which the regulations apply:

a. navigational aids 
b. marine traffic control
c. pilotage

2 We do not insure you under this clause: 

for liability/confiscation arising from:

2.1 breach of regulations relating to competition, regulation of companies or privacy and protection of personal data, including the General Data Protection Regulation (GDPR)

2.2 ownership, lease or operation by you/your employee of a road vehicle which is required to be licensed

2.3 your owned/leased carrying equipment which we do not insure for loss/damage

2.4 your making your customs bond/guarantee available to another person -unless this arises from:

2.4.1 assistance which an operator provides to you in your insured services 
or
2.4.2 other insured services which you provide

Qualifications

3 Intentional or Reckless Conduct

The Directors may in their discretion reduce or reject a claim if you or your employee have acted (or failed to act) intentionally or recklessly.

4 Illegality

If insurance for any of the matters specified at 1 above is held to be illegal, this will apply only to the matters concerned and will not affect other insurance under this clause or elsewhere in your policy 

5 Enforcement of Reimbursement

If it is held by a court or tribunal that you have no right to enforce reimbursement of a claim under this clause, we undertake to treat the claim as if your right is enforceable unless it would be illegal for us to do so

6 Limit

Limit for claims under 1.3.5: USD 1 million each accident and in the aggregate each account year

1 We insure you for the following costs (subject to N5:3):

1.1 Mitigation

Costs of minimising a claim 

1.2 Investigation & Defence

Costs arising from investigating an accident which may give rise to a claim and protecting your interests in relation to it (including legal and survey fees) - including the costs of recovering a debt if payment is withheld solely because of a claim  

1.3 Disposal

Costs, additional to costs which you would have incurred in any event, of disposing of cargo, insured carrying equipment or your customer’s property - except a ship/aircraft (or wreck) - after an accident to it

1.4 Quarantine & Disinfection (including fumigation)

Costs other than costs incurred in the normal course of business

1.5 Wreck Removal

Costs of removing the wreck of a ship, where during your period of insurance, one of the following circumstances arises:

1.5.1 you incur a liability under a regulation or under an order of an authority or

1.5.2 the wreck is a danger to navigation or

1.5.3 the wreck has to be removed in order to avoid or reduce the risk of a claim or

1.5.4 the wreck has to be removed in order to mitigate a claim or

1.5.5 the wreck has to be removed in order to provide your insured services

1.6 Clean Up Costs

Clean up costs which you incur under compulsorily applicable law or by order of an authority.

2 We do not insure you under this clause:

2.1 for costs which are insured under N4:1.1.3

2.2 for costs under 1.5 or 1.6 which are insured under any other provision in your policy 

Qualifications

3 Approval/Agreement

We only insure you if:

3.1 the Managers have agreed to the costs or

3.2 the Directors decide that the costs were properly incurred

4 Limits

Claims are subject to limits as below:

4.1 1.1-1.2: as for the claim being investigated/defended, or mitigated, and costs will be included in this claim for this purpose

4.2 1.3-1.4: as stated in your certificate  

4.3 1.5-1.6: USD 1 million each accident and in the aggregate each account year 

5 Deductibles

Claims are subject to deductibles as below:

5.1 1.1: as for the claim being mitigated

5.2 1.2-1.6: nil