Project Specific Professional Liability Insurance Policy

Project Specific Professional Liability Insurance Policy

1 2 3 4 5 6 Our agreement in general ......................................................................................................... 2 Insured section - Professional liability ...................................................................................... 4 Duties in the event of a claim or potential claim ....................................................................... 8 General terms and conditions ................................................................................................. 10 General definitions and interpretation..................................................................................... 13 Complaints .............................................................................................................................. 16

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1
1.1

Our agreement in general

Parties to this agreement
This Project Specific Professional Liability Insurance is between the insured and the insurer as declared in the schedule. This document, together with its schedule and any attached endorsements is the policy which sets out this insurance. It is a legal contract so please read all of it carefully

1.2

Words in bold
Words in bold type face used in this policy document, other than in the headings, such as insured in clause 1.1 above, have specific meanings attached to them as set out in clause 5, the General definitions and interpretation section of this document.

1.3

Primary purpose of the policy

By this policy, the insurer agrees, subject to the policys terms, limitations, exclusions and conditions, to:

1.3.1

indemnify the insured up to the limit of indemnity for all sums that the insured becomes legally liable to pay as compensatory damages, including claimant costs recoverable from the insured; and pay costs and expenses; arising from claims first made against the insured during the period of insurance in respect of negligence in the conduct of its professional practice, to the extent more fully described and set out in clause 2 below.

1.3.2

1.4
1.4.1

Policy structure
Clause 2 sets out the scope of main coverage and the circumstances in which the insurers liability to the insured is limited or may be excluded. Finally this clause sets out the insurers other terms and conditions. Clauses 3 - 6 set out the insurers: a) b) c) d) claims handling terms and conditions, including conditions precedent; general terms and conditions, including further conditions precedent; definitions; complaints procedure.

1.4.2

1.5
1.5.1

Policy period and premium

The policy will provide insurance as described in clauses 1.3 and 1.4 above for the period of insurance provided the premium and other charges are paid to and accepted by the insurer on or before the payment date shown in the schedule. The premium is deemed paid and accepted on receipt by the insurer or the intermediary appointed to place this insurance with the insurer. Taxes, levies and other relevant fiscal charges are payable in addition to the premium. If any premium (including the instalment of premium) is not paid and accepted by the insurer on or before its payment date shown in the schedule, the insurer can give written notice to the insured at its address shown on the schedule cancelling the policy

1.5.2 1.5.3

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with effect from the fourteenth (14th) day after the notice has been served. Without prejudice to other forms of service, notice of cancellation is deemed to be served on the third day after being posted if sent by pre-paid letter post properly addressed.

1.6
1.6.1

Basis for the policy

All information supplied by the insured in connection with the application for insurance including any proposal form, application form or otherwise and supplied by or on behalf of the insured will be incorporated into and form the basis of the policy. It shall be a condition of the policy that all such information is true so far as is within the insureds knowledge or could, with reasonable diligence, have been ascertained. It is a further condition of the policy that any material change in, or material addition to, the information mentioned in clause 1.6.1, either before or during the period of insurance, shall immediately be notified in writing as soon as practical after the insured becomes aware of any such change or addition, to the insurer who will continue the policy on such terms and conditions as it may determine. In the event of a breach of any provision of this clause 1.6, and without prejudice to any other rights of the insurer, the insurer may reject or reduce claims connected with the breach and may avoid, cancel or continue the policy on such terms as it may determine.

1.6.2

1.6.3

1.7
1.7.1

Privacy
The insurer collects non-public personal information about the insured and the insured person from the following sources: a) information the insurer receives from the insured on applications or other forms; b) information about the insureds transactions with the insurer, its subsidiary, parent and or other group companies, or others; c) information the insurer receives from consumer reporting agencies.

1.7.2

The insurer does not disclose any non-public personal information relating to the insured and/or any insured person to anyone except as is necessary in order to provide its products or services to the insured or otherwise as it is required or permitted by law (e.g., a subpoena, fraud investigation, regulatory reporting etc.). The insurer restricts access to non-public personal information relating to the insured and/or any insured person to its employees, its subsidiary, parent and or other group companies, or others, their employees or others who need to know that information to service the insureds account. The insurer maintains physical, electronic, and procedural safeguards to protect the insureds non-public personal information. As a consequence, any non-public personal information disclosed to one such employee or company is not deemed disclosed to all such employees or companies.

1.7.3

1.8
1.8.1

Signature
In evidence of the insurers intention to be bound by this insurance, it prints the signature of its Chief Operating Officer below.

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2
2.1
2.1.1

Insured section - Professional liability

Professional liability cover
Professional liability This policy is issued by the insurer subject to its terms, exclusions, limitations, and conditions and provides an indemnity to the insured in respect of the insured's legal liability to third Parties for any third party claim which meets the following requirements: A third party claim must: i) ii) iii) be for compensatory damages, such indemnity to include Claimant costs and the insured's approved costs and expenses; and be first made against the insured and notified by the insured to the insurer during the policy period or any applicable extended reporting period; and be arising or relating to a negligent act, negligent error, or negligent omission committed or omitted or alleged to have been committed or omitted (as the case may be) by the insured after the retroactive date; and arise out of the ordinary course of the performance of the professional activities & duties.

iv)

2.2
2.2.1

Additional Professional liability costs and expenses

Following any event which is or may be the subject of indemnity under clause 2.1, the insurer agrees to indemnify the insured for costs and expenses but the costs and expenses form part of the limit of indemnity and do not increase the limit of indemnity.

2.3

Professional liability limitations and exclusions

This insured section excludes and does not cover any claim or loss:

2.3.1

From any negligent act, negligent error or negligent omission which was or may have been or is alleged to have been committed or omitted (as the case may be) after the policy period, including during the extended reporting period; made other than by a third party; in respect of work undertaken as a contractor; for gross negligence or wilful misconduct by the insured or its representatives including gross negligence or wilful misconduct in relation to the failure to observe or comply with any applicable statutory building regulations; arising from liability assumed by the insured by agreement under any contract, whether oral or in writing, unless such liability would have attached to the insured in the absence of such agreement; arising out of the conduct of an individual, corporation, partnership or joint venture of which the insured is a partner, officer, member or employee, which is not designated in the schedule as a named insured, unless specifically endorsed hereon; subject to the provision of clause 2.3.8 below:

2.3.2 2.3.3 2.3.4

2.3.5

2.3.6

2.3.7

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(a) (b)

for death, bodily injury, disease or sickness sustained by any person and /or for loss of or damage to property other than that property on which professional activities and duties have been or are being performed undertaken or provided by or on behalf of the insured;

2.3.8

clause 2.3.7 will not apply where the insured is undertaking work solely for a fee in respect of the performance of its professional activities and duties, and the following exclusion will apply in its place: The policy shall not indemnify the insured in respect of claims: (a) for death, bodily injury, disease or sickness sustained by any person arising out of and in the course of their employment by the insured under a contract of service or apprenticeship with the insured; and/or for death, bodily injury, disease or sickness sustained by any person arising in respect of the performance of a contract the primary purpose of which is the provision of labour or service only for the performance of work of a kind ordinarily performed under a contract of service;

(b)

2.3.9 2.3.10

any claim against any insured in their capacity as a director, officer or trustee in respect of the performance or non-performance of their duties as a director, officer or trustee; arising from the advising of requirements for, or failure to advise of requirements for, or failure to maintain any form of insurance, suretyship or bond, either with respect to the insured or any other person; arising from the infringement of any trademark or patent; arising from the ownership, rental, leasing, operation, maintenance, use or repair of any real or personal property, including property damage to property owned by, occupied by, rented or leased to the insured; any liability in respect of any judgment, award, payment, defence costs or settlement delivered, made or incurred within countries which operate under the laws of United States of America, its territories and possessions or Canada (or to any order made anywhere in the world to enforce such judgment, award, payment, defence costs or settlement either in whole or in part) unless otherwise stipulated in the schedule;. any claim: a) made, threatened or intimated against the insured prior to the period of insurance; b) directly or indirectly arising out of, or in any way involving any fact or circumstance: i) of which written notice has been given under any previous policy (whether insured by the insurer or not); or ii) of which the insured first became aware prior to the period of insurance and which the insured knew or ought reasonably to have known had the potential to give rise to a claim or loss.

2.3.11 2.3.12

2.3.13

2.3.14

2.3.15 2.3.16 2.3.17

arising from or as a consequence of estimates of probable construction cost or cost estimates being exceeded; or estimates of profit or return on capital not being achieved; arising from inadequate accounting or imperfect control of accounts, or from financial operations or advices; for libel or slander;

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2.3.18 2.3.19

for consequential loss whatsoever and howsoever arising; arising from or contributed to by any dishonest fraudulent, criminal or malicious act or omission of the insured or of any director or of any officer or employee or of any subcontractor or agent of the insured; arising out of deterioration, depletion, rust, corrosion or erosion, wear and tear as might reasonably be expected given the physical conditions; arising out of the manufacture, sale or supply of products even though such activity may be carried on by the insured in conjunction with their professional services; in respect of liability loss or expense arising out of defective workmanship, defective materials, manual labour operations, or any defective materials, workmanship or production techniques used in the actual manufacture of the product. This exclusion shall not apply where such liability is otherwise indemnifiable hereunder and arises from negligent design where such professional activities and duties are undertaken by a professionally qualified architect or engineer; for injury, sickness, disease, death, loss, destruction of or damage to any property whatsoever or any loss or expense whatsoever resulting or arising therefrom or any consequential loss; b) for any legal liability of whatsoever nature; c) for any sum which the insured becomes legally liable to pay or any loss or expense; directly or indirectly caused by or contributed to by or arising from or, in the case of (c) above, attributable to: i) ionising radiations or contamination by radioactivity from any nuclear fuel or from any nuclear waste from the combustion of nuclear fuel; ii) the radioactive, toxic, explosive or other hazardous properties of any explosive nuclear assembly or nuclear component thereof. for loss or damage occasioned by or through or in consequence, directly or indirectly, of any of following occurrences, namely: a) b) c) war, invasion, act of foreign enemy, hostilities, or warlike operations (whether war be declared or not), and/or civil war. mutiny, civil commotion assuming the proportions of or amounting to a popular rising, military rising, insurrection, rebellion, revolution, military or usurped power. acts of terrorism . a)

2.3.20 2.3.21 2.3.22

2.3.23

2.3.24

In any action, suit or proceeding, where the insurer relies upon the provisions of this exclusion to exclude loss or damage, the burden of proving that such loss or damage is covered shall rest upon the insured; 2.3.25 directly or indirectly caused by or alleged to be caused by or contributed to in whole or in part by or arising from the existence of or exposure to asbestos and/or any asbestos containing materials. Nor shall there be any obligation to defend any claim or suit against the insured alleging liability resulting from the above and insurer shall have no liability for costs and expenses arising therefrom; for damages caused by seepage pollution or contamination of the atmosphere soil or water, or arising from the effects of atmospheric conditions, temperature, smoke, dust, soot, gases, steam, odours, noise or vibrations. However, this exclusion shall not apply if the harmful effect is due to a sudden occurrence neither intended nor expected where the same results as a direct consequence of an act of negligence in the conduct or the professional activities and duties undertaken by the insured;

2.3.26

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2.3.27

for the costs of removing, nullifying or cleaning-up seeping polluting or contaminating substances unless the seepage pollution or contamination is caused by a sudden unintended and unexpected occurrence where the same results as a direct consequence of an act of negligence in the conduct or the professional activities and duties undertaken by the insured; for losses for which the insured has or ought reasonably to have purchased insurance cover under an erection, construction, or CAR, or guarantee policy, including any public liability cover that would typically be provided by such covers, and even if such covers contain an exclusion of liability for professional indemnity risks; in respect of the insolvency of the insured.

2.3.28

2.3.29

2.4
2.4.1

Professional liability extensions

Project Managers The insurance by this insured section under clause 2.1.1 is extended to indemnify the insured against any liability incurred by the insured as managers of a project where they are remunerated for a fee for their services and shall be limited to the overall control and general supervision of the contract, provided the insurer shall not be liable for; a) any claim resulting from failure to procure or maintain any financing for the payment of contract work or services in connection therewith from any cause whatsoever; b) any claim which would normally be the responsibility of the contractor if a separate project manager were not appointed; c) any claim as a result of failure to effect and maintain insurance; d) insolvency of any of the parties involved in the project; e) any liability assumed by the insured under contract which would not have attached to them but for the existence of the contract; f) error or omission by the insured in estimates of probable construction cost or cost estimates being exceeded.

2.5
2.5.1

Other Professional liability terms and conditions

Retroactive date This policy excludes any claim arising from any breach of professional duty committed or alleged to have been committed or for any loss discovered prior to the retroactive date stated in the schedule.

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3
3.1
3.1.1

Duties in the event of a claim or potential claim

Claim notification
It is a condition precedent to liability under this policy that the insured shall at the earliest practical moment, and within the policy period or any applicable extended reporting period, notify the firm named for that purpose in the schedule of: a) any third party claim made against the insured b) the receipt of notice from any person of an intention to make a third party claim against the insured c) any circumstances which could reasonably be anticipated to give rise to a third party claim under this policy of which the insured first become aware during the policy period or any applicable extended reporting period.

3.1.2

Any matters for which written notice has been given under a), b) and c) above, whether such proceedings are brought during or after the expiration of the policy period or any applicable extended reporting period, shall be considered to be a third party claim first made against the insured at the time the insured first became aware of the said matter or matters irrespective of the date on which, subsequent legal proceedings may be brought against the insured as a direct result of any matter so advised. All matters should be notified prior to the expiry of the policy period unless the insured is prevented from doing so by virtue of such matter coming to their attention immediately prior to expiry in which case the insurer will allow the time period specified under the extended reporting period.

3.2
3.2.1

Insureds duties and Claim procedure

Following written notice of a third party claim or circumstance having been given, the insured shall provide full information with respect to the time, place and circumstances of the loss discovered, and the names and addresses of the injured and of available witnesses, to the insurer or to any of its authorised agents, at the earliest practical moment. The insured shall immediately forward to the insurer every demand, notice, summons or other process received by him or his representative in connection with any third party claim or circumstance notified. No admission, offer, promise or payment shall be made or given by or on behalf of the insured without the written consent of the insurer. The insurer shall be entitled to assume conduct, in the name of the insured, of the defence or settlement of any third party claim or to prosecute any such claim in the name of the insured for its own benefit and shall have full discretion in the conduct of any proceedings and in the settlement of any third party claim. The insured shall co-operate with the insurer and upon the insurer's request, shall submit itself and any of its employees, representatives or agents to examination and interrogation by a representative of the insurer, under oath if required, and shall attend any hearings, depositions and trials, including providing the powers of attorney reasonably required, effecting settlement, securing and giving evidence, obtaining the attendance of witnesses and in the conduct of suits, as well as in the provision of written statements to the insurer's representatives and meetings with such representatives for the purpose of investigation and/or defence, and all without charge to the insurer. The insured shall take all steps reasonably required, once any third party claim or circumstances have been notified, to mitigate any loss or damage that may have occurred. The insured shall at all times act in those circumstances as if uninsured, and

3.2.2

3.2.3

3.2.4

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in accordance with the normal skill and attention required in carrying out the insureds professional activities and duties in accordance with internationally recognised norms and standards, including those prescribed by any regulatory authority or professional body. 3.2.5 The insured shall co-operate with the insurers instructions in respect of the exercise of any contractual right, including arbitration or other form of legal proceedings in respect of any third party claim.

3.3
3.3.1

Insurers duties
The insurer shall defend any suit brought by way of third party claim against the insured, even if any of the allegations of the suit are groundless, false or fraudulent and it is agreed that the insurer may make such investigation and settlement of any claim or suit as it deems expedient, but the insurer shall not be obliged to pay any claim or judgement or to defend any suit after the aggregate limit of indemnity has been exhausted. The insurer shall not be liable to pay any costs and expenses unless the express written consent of the insurer is obtained prior to such costs or expenses being incurred, which consent shall not be unreasonably withheld. The insurer shall not settle any claim without the consent of the insured. If, however, the insured refuses to agree to any settlement recommended by the insurer and elects to contest the claim or continue any legal proceedings in connection with such claim, then the insurer's liability shall not exceed the amount for which the claim could have been so settled including costs and expenses incurred up to the date of such refusal. The reasonableness of costs and expenses shall be determined by the insurer in line with prevailing standards.

3.3.2

3.3.3

3.3.4

3.4
3.4.1

Subrogation
In the event of any claim under this policy, the insurer shall be subrogated to all the insured's rights of recovery against any person or organisation and the insured shall execute and deliver all instruments and papers, including any powers of attorney required, and do whatever else is necessary to secure such rights. The insured shall not take any action whatsoever, without the prior written consent of the insurer, which may serve to prejudice such rights.

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4
4.1
4.1.1

General terms and conditions

Assignment
This policy shall be void if assigned or transferred without the prior written consent of the insurer. However, if the insured shall die or be adjudged incompetent this policy shall cover the insured's legal representatives as the insured with respect to liability previously incurred and covered by this policy.

4.2
4.2.1

Audit
The insurer may examine and audit the insured's books and records at any time during the policy period and extensions thereof and within three years after the final termination of this policy, as far as they relate to the subject matter of this policy.

4.3
4.3.1

Disclosure
It is a condition precedent to the insurerss liability that the statements and particulars in the proposal form and any supplementary information pertaining thereto provided by or on behalf of the insured form the basis of this policy and shall be deemed incorporated herein. The insured warrants, by acceptance of this policy:

4.3.2

that the statements and particulars in the proposal form, and any supplementary information contain a full description of all material facts and information relating to the risks insured hereunder, and acknowledges that this policy is issued in reliance upon the truth and extent of such representations; and that in the event the proposal form, or any supplementary information provided conceals any matter or provides incorrect information relating to any risk insured hereunder, the insurer, may avoid or cancel the policy in its entirety.

4.3.3

4.4

Fraudulent Claims
If the insured shall make any claim for indemnity knowing the same to be false or fraudulent, as regards amount or otherwise, the insurer shall be entitled in its sole discretion to avoid or to cancel the policy in its entirety, and all premium paid and claims for indemnity hereunder shall be forfeited.

4.5
4.5.1

Jurisdiction Limits
The indemnity provided by this policy shall apply only to final judgements against the insured according to the laws of, and obtained in the courts of, the country or countries of jurisdiction stated in the schedule, and not to judgements obtained elsewhere nor to judgements or orders obtained in the said courts for the enforcement of judgements obtained elsewhere whether by way of reciprocal agreements or otherwise. It is agreed between the insurer and the insured that the premium for this policy has been calculated accordingly and no consideration has been paid in respect of liabilities arising under any other law or the jurisdiction of any other courts.

4.5.2

4.6
4.6.1

Limit of Indemnity
The total liability (inclusive of claimants costs and all costs and expenses and regardless of the total number or amount of third party claims made against the insured) of the insurer shall never exceed the aggregate limit of indemnity stated in

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the schedule, for all third party claims made against the insured during the policy period. 4.6.2 The inclusion herein of more than one insured or the submitting of claims or the bringing of suits by more than one person or organisation, shall not operate to increase the aggregate limit of indemnity. The insurer may at any time pay to the insured in connection with any third party claim or series of third party claims notified hereunder the amount of the limit of indemnity as shown in the schedule (after deduction of any sum or sums already paid by the insurer whether as costs and expenses or as compensation) or any lesser amount for which such claim or claims can be settled. Upon such payment being made the insurer shall be under no further liability in connection therewith and shall (except with respect to any subrogation action) relinquish the conduct and control of and be under no further liability in connection with such claim or claims or associated costs and expenses.

4.6.3

4.7
4.7.1

Material Changes
Change of control of the insured In the event of there being any change in the effective ownership or control of the insured whether financial or otherwise and whether occurring by operation of law, voluntary act on the part of the insured or by merger, purchase or sale of assets or shares or in any other way then the insured shall advise the insurer in advance any such change and the insurer shall have the right to either maintain the policy unchanged, amend coverage, increase the premium or cancel the policy

4.7.2

Increase and decrease in risk If during the policy period any material information, notice of which was or ought to have been given in the proposal form or otherwise, should change, resulting in a material change in risk, the insured shall notify the insurer as soon as practicable in writing of such change whereupon the insurer may elect to terminate this policy or to offer the insured a continuation of cover on such revised terms and conditions as the insurer may require.

4.7.3

Notice Notice to any agent or knowledge possessed by any agent or other person acting on behalf of the insurer shall not effect a waiver or a change in any part of this policy or estop the insurer from asserting any right under the terms of the policy, nor shall the terms of this policy be waived or changed, except by endorsement issued by the insurer, any such endorsement to form a part of this policy.

4.7.4

Any exercise of the right to terminate this policy in accordance with the foregoing shall be subject to the provisions of clause 4.10. In the case of failure to reach agreement on revised terms and conditions, within 30 (thirty) days of the insurer advising the insured thereof, this policy shall be deemed to have been terminated by the insurer, such termination to take effect after a further 30 (thirty) days, and to be subject to the provisions of clause 4.10.

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4.8

Measures for the prevention of loss or damage

The insured is under an obligation to remedy, at its own expense and within a reasonable time, any dangerous state which might lead to a loss or damage or the elimination of which has been demanded by the insurer. The insured shall at all times act as if uninsured and in accordance with the usual skill and attention required in carrying out the insureds professional activities and duties in accordance with internationally recognised norms and standards, including those prescribed by any regulatory authority or professional body.

4.9

Other Insurance
This insurance shall be excess insurance over any other valid and collectible insurance available to the insured whether such other insurance is stated to be primary, contributing, excess, contingent or otherwise, unless such other insurance specifically applies as excess insurance over the limits of liability provided in this policy.

4.10
4.10.1

Termination provisions
This policy may be cancelled by the insurer by mailing written notice stating when, not less than thirty (30) days thereafter such cancellation shall be effective. However, If the insurer cancels the policy because the insured has failed to pay a premium when due, this policy may be cancelled by the insurer by giving the insured not less than fourteen (14) days written notice of their intention to cancel this policy. There is no right of cancellation on the part of the insured, please ensure the policy is suitable for requirements. Any notice provided shall run from midnight of the day following that upon which the letter is posted. Premium adjustment may be made at the time cancellation is effected or as soon as practicable thereafter. The cheque of the insurer or any of its representatives, mailed or delivered, shall be sufficient tender of any refund due to the insured. If the insurer elects to cancel, the unearned premium will be refunded to the insured on a pro rata basis. This policy shall also terminate immediately upon exhaustion of the aggregate limit of indemnity by one or more payments made under this policy in which event the premium is deemed to be fully earned.

4.10.2 4.10.3 4.10.4

4.10.5 4.10.6

4.11
4.11.1

Uninsured Excess
Subject to the aggregate limit of indemnity, the insurer shall be liable only for that part of each and every third party claim during the policy period, including any third party claimant costs payable and the insured's approved costs and expenses, which exceeds the uninsured excess stated in the schedule. The uninsured excess will apply to each and every third party claim whether or not loss payments shall be made and shall be subject to no aggregate limitation. It is agreed that the insured will pay, within ten days, such part of the claims expenses and loss payment as may be demanded in writing by the insurer. However, either individually or combined, the total payments requested from the insured in respect of each single claim shall not exceed the amount of the uninsured excess shown in the schedule.

4.11.2 4.11.3

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General definitions and interpretation

The following words will have the same meaning attached each time they appear in this policy in bold type face, whether with a capital first letter or not. Where the context so admits or requires, words importing the singular will include the plural and vice versa and words importing the masculine will import the feminine and the neuter. References to 'a person' will be construed so as to include any individual, company, partnership, or any other legal entity. References to a statute will be construed to include all its amendments or replacements. All headings within the policy are included for convenience only and will not form part of this policy.

5.1

Aggregate Limit of Indemnity

Aggregate Limit of Indemnity means the aggregate maximum sum insured as set out in the schedule hereto, representing the maximum sum payable under this policy for claims made during the policy period, regardless of whether the losses are due to one single or to several loss occurrences.

5.2

Bodily Injury
Bodily Injury means death of, injury to or other health impairment of persons.

5.3

Contractor
Contractor means the person or persons performing physical construction work including but not limited to erection, installation, alteration, repair, service, treatment., as opposed to carrying out professional activities and duties. This policy does not provide cover for work undertaken by the insured in respect of the same

5.4

Damages
Damages means compensatory damages only and does not include punitive damages, penalties, liquidated damages or the return or withdrawal of professional fees.

5.5

Costs and Expenses

Costs and expenses means

5.5.1 5.5.2 5.5.3

fees and expenses charged by any lawyer appointed or approved by the insurer; all other fees, costs and expenses properly incurred in the investigation, adjustment, defence and appeal of a third party claim, if incurred or approved by the insurer; or fees charged by any lawyer designated by the insured with the written consent of the insurer. but excludes salary expenses, management expenses and the costs of regular employees or officials of the insured and the insurer.

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5.6

Extended reporting period

Extended reporting period means the period as set out in the schedule running concurrent from the end of the policy period, which the insured may continue to notify a valid third party claim that would but for the extended reporting period have been excluded by the insurer as having been notified outside of the policy period. However, any negligent act, negligent error or negligent omission which was or may have been or is alleged to have been committed or omitted (as the case may be) after the policy period shall be excluded. If no extended reporting period is stated in the schedule it shall be deemed to be not applicable and no additional time will be granted.

5.7

Insured
Insured means the person or persons named as being insured in the schedule, which shall include

5.7.1 5.7.2

any other person or persons who may at any time during the subsistence of this policy become a partner of the firm named in the schedule. any person at any time employed by the insured in the conduct, by or on behalf of the insured, in their capacity as architects, engineers and/or designers.

5.8

Insurer
Insurer means the party specified as insurer in the schedule and any other subscribing insurers.

5.9

Policy
Policy means this document, the schedule (including any schedules issued in substitution) and any endorsements attaching to this document or the schedule that will be considered part of the legal contract and any word or expression in bold type face on any of these documents will bear the specific meaning stated in these definitions.

5.10

Policy Period
Policy period means the period from the inception date of this policy to the policy expiration date, as set forth in the schedule, or its earlier termination date, if any.

5.11

Professional Activities and Duties

Professional activities and duties means the performance by the insured of any professional;

5.11.1 5.11.2 5.11.3 5.11.4 5.11.5

design or specification inspection feasibility study technical information calculation survey undertaken only by or under the direction and direct control of a properly qualified Architect or Engineer or Surveyor or Quantity Surveyor

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For the avoidance of doubt if the insured acts as a contractor, professional activities and duties do not include supervision by the insured of its own or its subcontractor s work where such supervision is undertaken in its capacity as a building or engineering contractor.

5.12

Proposal Form
Proposal form means the form referred to in the schedule comprising all information and particulars that are material to the risks insured under the policy.

5.13 5.14

Schedule
Schedule means the schedule attached to and forming part of this policy.

Single Claim
Single claim means two or more claims arising out of a single act of negligence, or arising from the same or similar cause or occurrence (e.g. from the same calculation, planning or supervision error) regardless of the number of injured parties. They shall be treated together as a single claim. Each separate act of negligence shall be treated as a separate claim.

5.15

Terrorism
Terrorism shall mean an act, including but not limited to the use of force or violence and / or threat thereof, 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), committed for political or religious or similar purposes including the intention to influence any government and / or to put the public, or any section of the public, in fear.

5.16

Third Parties
Third parties means all persons not named or insured under the policy. Where there is more than one named insured, the additional insured party shall have no right to claim against any other insured as if it was a third party.

5.17

Third Party Claim

Third party claim means any demand made against or received by the insured for money or services during the policy period, including the service of suit or commencement and service of legal or arbitration proceedings against the insured, during the policy period.

5.18

Uninsured Excess
Uninsured excess means that part of the loss which has to be borne by the insured as a deductible, including loss payments and claims expenses, whether or not loss payment is made.

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6 Complaints
6.1
6.1.1

What the insured should do?

The insurer strives to provide an excellent service to all its customers but occasionally things can go wrong. The insurer takes all complaints seriously and endeavours to resolve all customers problems promptly. If the insured has a question or complaint about this insurance or the conduct of its intermediary they should contact that intermediary in the first instance. If the insured wishes to contact the insurer directly the insured should write to the complaints address shown in the schedule. Please quote the policy number or claim number as appropriate in any correspondence. If you remain unable to resolve the situation and wish to continue to make a complaint you can do so at any time by referring the matter to the Complaints Department at Lloyds. Their address is: Complaints Department Lloyds One Lime Street London EC3M 7HA Tel No: 020 7327 5693 Fax No: 020 7327 5225 E-mail: Complaints@Lloyds.com

6.1.2

6.1.3

6.1.4

Complaints that cannot be resolved by the Complaints Department may be referred to the Financial Ombudsman Service. Further details will be provided at the appropriate stage of the complaints process.

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QBE European Operations

Plantation Place 30 Fenchurch Street London EC3M 3BD tel +44 (0)20 7105 4000 fax +44 (0)20 7105 4019 differently@uk.qbe.com www.QBEeurope.com

795/PSPLIP/APR2009 QBE European Operations is a trading name of QBE Insurance (Europe) Limited and QBE Underwriting Limited. QBE Insurance (Europe) Limited and QBE Underwriting Limited are authorised and regulated by the Financial Services Authority. QBE Management Services (UK) Limited and QBE Underwriting Services (UK) Limited are both Appointed Representatives of QBE Insurance (Europe) Limited and QBE Underwriting Limited.