1 We insure you for:

Your liability for physical loss of and damage to cargo and resulting consequential loss

2 We do not insure you under this clause:

2.1 to the extent that your liability is incurred/increased by:

2.1.1 any voluntary acceptance by you of enhanced liability under a law or convention, as defined at 3.1.1

2.1.2 an incorrect statement in or omission from any bill of lading*

2.1.3 package/unit enumeration in your subcontractor’s bill of lading* for sea carriage which fails to correspond with the enumeration in your bill of lading*

*or other contract of carriage or handling documentation

2.2 for liabilities in respect of bullion, precious stones or cash/securities

2.3 for 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

2.4 for liabilities excluded at G1:2

Qualifications

3 Law, Conventions and Approved Contracts

3.1 We insure you only for liabilities under:

3.1.1 the provisions of a law or convention which apply compulsorily and cannot be avoided or limited by contract

3.1.2 your standard trading conditions as approved by the Managers, or other approved contract (subject to 3.3)

3.1.3 our model conditions

3.2 Subject to the terms of your insurance, we insure you if it is established by a court or tribunal or the Managers agree settlement on the basis that you are not entitled to rely on any defence or limitation of liability under a law/convention or contract as defined at 3.1

3.3 We insure you under approved contracts subject to:

3.3.1 any exclusions/qualifications in your Approved Contracts Schedule

3.3.2 all terms of your insurance unless we specifically waive these in the Schedule

3.4 If you contract on terms other than those specified at 3.1, we only insure the liabilities to which you would have been exposed if you had contracted on appropriate terms specified at 3.1

4 Limit: Valuable Cargo

A limit of USD 100,000 each accident 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:

1.1 financial loss:

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

1.1.2 incurred by your customer arising from delay in performing your contractual obligations

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

a. your customer or
b. the person entitled to delivery under a bill of lading or other contract of carriage or handling documentation

1.2 physical loss and damage of cargo - to the extent that your liability is incurred or increased by an incorrect statement or omission in any 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 (except as stated at 1.2)

2.2 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 matters, consider your corporate and compliance systems/procedures

4 References to T1

The following paragraphs of T1 also apply to this clause:

4.1 Voluntary acceptance of enhanced liability under a law or convention (T1:2.1.1)

4.2 Package enumeration (T1:2.1.3)

4.3 Valuable cargo (exclusions) (T1:2.2)

4.4 Stocktaking (T1:2.3)

4.5 Liabilities excluded at G1:2 (T1:2.4)

4.6 Law, conventions and approved contracts (11:3)

4.7 Valuable cargo (special limit) (11:4) save that the USD 100,000 limit applies each accident and in the aggregate each account year

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 or 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 or 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

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

2.1 for death, injury or illness of your employee which you incur as an employer or which would normally be insured under an Employers Liability insurance

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

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

2.4 in respect of your owned or leased:

2.4.1 equipment leased to someone else - other than to your joint service/venture partner for use in the joint service/venture

2.4.2 handling equipment used with your consent by someone else

2.4.3 carrying equipment which we do not insure for loss/damage

2.5 as owner/lessee of land which is not an insured location

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

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

2.8 excluded at G1:2

2.9 in respect of any risk which is insured under 14

Qualifications

3 Limit of Liability

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 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:

4.1 we insured the equipment immediately before the transfer and

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

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 - but only if arising from physical loss or damage of cargo or equipment

2 We do not insure you under this clause:

for liability/confiscation arising from:

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

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

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

2.3.1 assistance which an operator provides to you in your insured services
or
2.3.2 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 has 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 References to T1

The following paragraphs of T1 also apply:

6.1 Valuable cargo (exclusions) (T1:2.2)

6.2 Valuable cargo (limit) (T1:4) save that the USD 100,000 limit applies each accident and in the aggregate each account year

7 Limit

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

1 We insure you for the following costs (subject to T5:3):

1.1 Mitigation

1.1.1 Additional costs incurred:

a. in sending misdirected cargo to the correct destination - calculated as at 6 below
b. to complete your contractual obligation to transport the cargo to the place of delivery - and arising solely from the failure of your subcontractor (or person acting on its behalf) to pay its debts (or pay promptly)

1.1.2 Costs of minimising a claim, except as specified at 1.1.1

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 Clean Up Costs

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

1.6 General average & Salvage

Cargo’s contribution for which you are liable and which you cannot recover from your customer

1.7 Uncollected Cargo

Additional costs incurred solely by the failure of any party to collect or remove cargo less:

1.7.1 costs which you would have incurred in any event

1.7.2 proceeds from sale of cargo

1.7.3 sums which you can recover from anyone else

2 We do not insure you under this clause for:

costs which are insured under T4:1.1.3

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 as for the claim being investigated/defended, or mitigated, and costs will be included in this claim for this purpose: Claims under 1.1.2 & 1.2

4.2 USD 25,000*: Claims under 1.1.1(b) & 1.7

4.3 USD 1 million*: Claims under 1.5

4.4 as stated in your certificate: All other claims

*each accident and in the aggregate each account year

5 Deductibles

Claims are subject to deductibles as below:

5.1 1.1.2: as for the claim being mitigated

5.2 All other claims: Nil

6 Calculation of Misdirection Costs

6.1 We calculate misdirection costs as at 1.1.1(a) above as follows:

6.1.1 costs of carriage of cargo from the place at which you originally
received it to the place from where it was misdirected plus

6.1.2 costs of carriage from the place to which it was misdirected to the
correct place less

6.1.3 freight and other charges due to you for the carriage

6.2 Carriage from the place to which the cargo was misdirected to the correct place will not be by air unless:

6.2.1 the original carriage was agreed to be by air or

6.2.2 the Managers agree

6.3 Where the costs as calculated above do not exceed a minimum of USD 500, there is no claim under this clause

6.4 Costs of carriage as at 6.1 include storage, demurrage and other necessarily incurred ancillary costs

7 General Average & Salvage Guarantees

7.1 We may assist you in releasing cargo liened for general average or salvage contributions - usually by:

7.1.1 arranging for cargo underwriters to give the necessary guarantee or

7.1.2 ourselves giving a guarantee

7.2 When we give a guarantee you will obtain:

7.2.1 a completed valuation form for the cargo and

7.2.2 prior to delivery of the cargo, counter security acceptable to us from the consignee or its cargo underwriters

8 Clean Up Costs

We do not insure you under this clause for costs under 1.5 which are insured under any other provision in your policy.