1 We insure you as follows:

In addition to insurance under other clauses the Directors may decide that we will reimburse you in an amount in their discretion for risks incurred:

1.1 incidental to insured services

1.2 in case of interference by an international organisation or authority, which the Directors consider is unwarranted or requires investigation

1.3 where the Directors by special direction consider this in our interests, or those of our members

1 We insure you for your liability for:

1.1 Malicious prosecution, false arrest, false detention and false imprisonment

1.2 Defamation

1.3 Wrongful entry/eviction or other invasion of rights of private occupancy

1.4 Advertising injury arising from an offence, committed within your period of insurance, in the course of advertising your goods, products or services

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

2.1 arising from wilful violation of a penal regulation - by you or with your knowledge (or by or with the knowledge of your executive officer)

2.2 to a person and relating to your direct or indirect employment of that person

2.3 arising from a false oral or written publication - by you or on your direction - with knowledge of its falsity

2.4 arising under a contract

2.5 for defamation under 1.2 which:

2.5.1 was published before your period of insurance started - or where a similar defamation was published before your insurance started

2.5.2 concerns any organisation/business and was published by you (or on your order or by or on the order of your executive officer) knowing it to be false

2.6 under 1.2 for any risk which is covered under 1.4

2.7 for advertising injury under 1.4 arising from:

2.7.1 breach of contract - other than misappropriation of advertising ideas under an implied contract

2.7.2 failure of goods, products or services to conform with advertised quality or performance

2.7.3 wrong description of the price of goods, products or services

2.7.4 an offence committed by an assured or joint assured whose business is advertising, broadcasting, publishing or telecasting

1 We insure you for:

1.1 Physical loss of and damage to insured handling equipment arising from: 1.1.1 an accident including mechanical/electrical breakdown or malfunction

1.1.2 strikes riots & terrorist risks and piracy risks

1.1.3 war risks on board

1.2 Your liability for general average and salvage contributions in respect of insured handling equipment (including strike riots & terrorist risks and piracy risks)

1.3 Per diem lease charges incurred when as a result of an insured risk re-delivery to the lessor of your insured leased handling equipment is:

1.3.1 prevented because the equipment is a total loss or

1.3.2 delayed because you have a liability to repair the equipment

2 We do not insure you under this clause for:

2.1 physical loss or damage arising from the following, unless this also causes loss of or damage to another part of the insured equipment or to other insured equipment:

2.1.1 defects in design or manufacture

2.1.2 wear and tear

2.1.3 inherent vice or latent defect

2.1.4 subsidence which is not sudden, unintended and unexpected

2.1.5 computer, data processing or program error/breakdown

2.1.6 mechanical/electrical breakdown or malfunction of:

a. communications equipment, alarm systems or external computers
b. equipment with market value less than USD 75,000

2.2 spare parts, accessories, plant, tools or materials for maintenance/repair of equipment found to be missing on stocktaking, if you are unable to provide reasonable proof of the accident which caused the loss  

2.3 loss/damage arising from:

2.3.1 order, nationalisation, embargo, quarantine, requisition or compulsory purchase by an authority

2.3.2 tests under abnormal conditions unless to comply with regulations  

2.3.3 overload unless:

a. to comply with regulations or
b. for inspection/testing or
c. it is not intentional or habitual

2.3.4 any modification - unless agreed by:

a. the manufacturer or
b. an authority or
c. a surveyor approved by the Managers

2.3.5 erection or dismantling of equipment - unless for inspection, maintenance or repair (or movement which is not excluded under 2.3.6)

2.3.6 movement of equipment - other than within the same terminal, port or depot

2.4 loss of or damage to an expendable/replaceable part - unless arising from loss of or damage to equipment which is external to the part

2.5 war risks on land

Qualifications 

3 Declaration 

3.1 You may add equipment which you have not previously declared, subject to notifying us within 28 days of acquisition, and to terms to be agreed

3.2 You will not reduce the insured value of any equipment during your account year

3.3 You will give us immediate notice of any change in location/working conditions which may increase the risk of a claim. If we do not agree to the increased risk, we will not be liable for resulting claims

3.4 A statement of value in your certificate reflects information which you have provided and is not binding on us for the purposes of 6 below

4 War Risks 

We do not insure you for war risks arising from: 

4.1 hostile detonation of a nuclear weapon

4.2 war (declared or not) between permanent members of the UN Security Council

4.3 seizure by an authority of your country

4.4 seizure under any customs or quarantine regulation

4.5 ordinary judicial process, failure to pay a fine/penalty or provide security or any financial cause

5 War, Strikes Riots & Terrorist (SR&T) and Piracy Risks

5.1 Insurance for war, SR&T and piracy risks will automatically cease on:

5.1.1 hostile detonation of a nuclear weapon (anywhere - whether your equipment is involved or not)

5.1.2 war as at 4.2

5.2 We do not insure you for war, SR&T or piracy risks which arise while your insured handling equipment is in a listed area

5.3 Subject to 5.4, the Managers may at any time:

5.3.1 update the schedule of listed areas

5.3.2 cease your insurance for war, SR&T or piracy risks entirely

5.4 In case of update or cesser as at 6.3 the Managers will notify you by Circular as at G2:41. The effective date will be at least seven days after the date of the Circular.

6 Reimbursement

We will in no case pay more than the insured value of the equipment lost or damaged. Subject to this, we will pay as follows:

6.1 Damage

6.1.1 We will pay the cost of repair of the equipment unless you opt not to repair the equipment, when we will pay the indemnity value of the damaged part

6.1.2 We will, in our discretion, pay reasonable costs of your own materials and labour not exceeding the market cost

6.1.3 We will deduct the value of any part that you can use again

6.1.4 We will not pay for temporary repairs, or for damage arising from use of equipment in a state of temporary repair, unless we have approved the temporary repair in advance

6.1.5 You may commence permanent repairs immediately after notifying the Managers – provided you keep any damaged part for our inspection

6.2 Actual Total Loss

We will pay the insured value

6.3 Constructive Total Loss (CTL)

If the reasonable repair costs of damage sustained in one accident are estimated to exceed the insured value, we will pay the insured value as a CTL, less any salvage value

6.4 Leased Equipment

We will pay the value of the item which you are liable to pay under a lease, not exceeding the insured value

7 Average

If the market value of an item of equipment at the time of an accident is greater than the insured value, we will reduce reimbursement, calculated as at 6 above, by the percentage by which the insured value of the item is less than the market value. This paragraph (7):

7.1 applies only if the insured value is less than 80% of the market value of the item

7.2 applies separately to each item of equipment

7.3 does not apply to freight charges and labour costs

7.4 does not apply if the insured value is an agreed value

7.5 does not require us to pay more than the insured value for any item of equipment

8 Storm Earthquake Flood SR&T

An extended definition of accident, stated at G2:40, applies to storm, earthquake, flood and strikes riots & terrorist risks

9 Debris Removal Costs

9.1 We insure you for the following costs in respect of insured equipment
damaged as specified at 1 above:

9.1.1 debris removal from the site of the equipment, or immediately
adjacent to it

9.1.2 dismantling/demolishing the equipment

9.1.3 shoring/propping up the equipment

9.1.4 clearing drains/sewers

9.2 We do not insure you under this paragraph 9 for costs arising from pollution/contamination

9.3 We do not insure you under any other provision in your policy for costs specified at 9.1

9.4 Costs specified at 9.1 are in excess of the insured value of the equipment concerned (subject to G2:29.3)

9.5 We only insure you for costs specified at 9.1 if:

9.5.1 the Managers have agreed to the costs or

9.5.2 the Directors decide that the costs were properly incurred

10 Limit (Per Diem Lease Charges)

The maximum of charges which you incur for 30 days from and including the original redelivery date

11 Interest in Ship/Aircraft

G1:5 does not apply to this clause

1 We insure you for:

1.1 Physical loss of and damage to insured handling equipment arising from: 1.1.1 an accident including mechanical/electrical breakdown or malfunction

1.1.2 strikes riots & terrorist and piracy risks

1.2 Your liability for general average and salvage contributions in respect of insured handling equipment  (including strike riots & terrorist risks  and piracy)

1.3 Per diem lease charges incurred when as a result of an insured risk re-delivery to the lessor of your insured leased handling equipment is:

1.3.1 prevented because the equipment is a total loss or

1.3.2 delayed because you have a liability to repair the equipment

2 We do not insure you under this clause for:

2.1 physical loss or damage arising from the following, unless this also causes loss of or damage to another part of the insured equipment or to other insured equipment:

2.1.1 defects in design or manufacture

2.1.2 wear and tear

2.1.3 inherent vice or latent defect

2.1.4 subsidence which is not sudden, unintended and unexpected

2.1.5 computer, data processing or program error/breakdown

2.1.6 mechanical/electrical breakdown or malfunction of:

a. communications equipment, alarm systems or external computers
b. equipment with market value less than USD 75,000

2.2 spare parts, accessories, plant, tools or materials for maintenance/repair of equipment found to be missing on stocktaking, if you are unable to provide reasonable proof of the accident which caused the loss

2.3 loss/damage arising from:

2.3.1 order, nationalisation, embargo, quarantine, requisition or compulsory purchase by an authority

2.3.2 tests under abnormal conditions unless to comply with regulations

2.3.3 overload unless:

a. to comply with regulations or
b. for inspection/testing or
c. it is not intentional or habitual

2.3.4 any modification - unless agreed by:

a. the manufacturer or
b. an authority or
c. a surveyor approved by the Managers

2.3.5 erection or dismantling of equipment - unless for inspection, maintenance or repair (or movement which is not excluded under 2.3.6)

2.3.6 movement of equipment - other than within the same terminal, port or depot

2.4 loss of or damage to an expendable/replaceable part - unless arising from loss of or damage to equipment which is external to the part

2.5 loss/damage while the equipment is:

2.5.1 leased to someone else

2.5.2 used with your consent by someone else

2.6 war risks

Qualifications

3 Declaration

3.1 You may add equipment which you have not previously declared, subject to notifying us within 28 days of acquisition, and to terms to be agreed  

3.2 You will not reduce the insured value of any equipment during your account year

3.3 You will give us immediate notice of any change in location/working conditions which may increase the risk of a claim. If we do not agree to the increased risk, we will not be liable for resulting claims  

3.4 A statement of value in your certificate reflects information which you have provided and is not binding on us for the purposes of 5 below

4 SR&T (Strikes Riots & Terrorist) & Piracy Risks

4.1 We do not insure you for SR&T risks arising from war - including civil war, revolution, rebellion, insurrection and hostile act by/against a belligerent power

4.2 The Managers may at any time decide that we will not insure you for SR&T  or piracy risks either entirely or in respect of your equipment which is in any country, territory or area (whether of land or sea). The Managers will notify you by Circular as at G2:41 of this decision, which will take effect at 2400 GMT on the seventh day after notice is given

4.3 Insurance for SR&T risks will automatically terminate on:

4.3.1 hostile detonation of a nuclear weapon (anywhere - whether your equipment is involved or not)

4.3.2 war (declared or not) between permanent members of the UN Security Council

5 Reimbursement

We will in no case pay more than the insured value of the equipment lost or damaged. Subject to this, we will pay as follows:

5.1 Damage

5.1.1 We will, in our discretion, pay the cost of repair of the equipment   or the indemnity value of the damaged part

5.1.2 We will, in our discretion, pay reasonable costs of your own materials and labour not exceeding the market cost

5.1.3 We will deduct the value of any part that you can use again

5.1.4 We will not pay for temporary repairs, or for damage arising from use of equipment in a state of temporary repair, unless we have approved the temporary repair in advance

5.1.5 You may commence permanent repairs immediately after notifying the Managers – provided you keep any damaged part for our inspection

5.2 Actual Total Loss

We will pay the insured value

5.3 Constructive Total Loss (CTL)

If the reasonable repair costs of damage sustained in one accident are estimated to exceed the insured value, we will pay the insured value as a CTL, less any salvage value

5.4 Leased Equipment

We will pay the value of the item which you are liable to pay under a lease, not exceeding the insured value

6 Average

If the market value of an item of equipment at the time of an accident is greater than the insured value, we will reduce reimbursement, calculated as at 5 above, by the percentage by which the insured value of the item is less than the market value. This paragraph (6):

6.1 applies only if the insured value is less than 80% of the market value  of the item

6.2 applies separately to each item of equipment

6.3 does not apply to freight charges and labour costs  

6.4 does not apply if the insured value is an agreed value

6.5 does not require us to pay more than the insured value for any item of equipment

7 Storm Earthquake Flood SR&T

An extended definition of accident, stated at G2:40, applies to storm, earthquake, flood and strikes riots & terrorist risks

8 Debris Removal Costs  

8.1 We insure you for the following costs in respect of insured equipment damaged as specified at 1 above:

8.1.1 debris removal from the site of the equipment, or immediately adjacent to it

8.1.2 dismantling/demolishing the equipment

8.1.3 shoring/propping up the equipment  

8.1.4 clearing drains/sewers

8.2 We do not insure you under this paragraph 8 for costs arising from pollution/contamination

8.3 We do not insure you under any other provision in your policy for costs specified at 8.1

8.4 Costs specified at 8.1 are in excess of the insured value of the equipment concerned (subject to G2:29.3)

8.5 We only insure you for costs specified at 8.1 if:

8.5.1 the Managers have agreed to the costs or

8.5.2 the Directors decide that the costs were properly incurred

9 Limit (Per Diem Lease Charges)

The maximum of charges which you incur for 30 days from and including the original redelivery date

10 Interest in Ship/Aircraft

G1:5 does not apply to this clause

1 We insure you for:

Physical loss of and damage to insured property arising from:

1.1 an accident including mechanical/electrical breakdown or malfunction

1.2 strikes riots & terrorist risks

2 We do not insure you under this clause for:

2.1 physical loss or damage arising from the following, unless this also causes loss of or damage to another part of the insured property or to other insured property:

2.1.1 defects in design or manufacture

2.1.2 wear and tear

2.1.3 inherent vice or latent defect

2.1.4 subsidence which is not sudden, unintended and unexpected

2.1.5 normal settling, shrinking or expansion in buildings, structures or foundations

2.1.6 atmospheric conditions (dampness, dryness, extremes or changes of temperature), condensation, fog or smog

2.1.7 rot, spoilage, decay, decomposition or leakage

2.1.8 insects, vermin or microorganisms  

2.1.9 computer, data processing or program error/breakdown

2.2 loss/damage arising from modifying, testing, erecting or dismantling insured property

2.3 war risks

2.4 insured property found to be missing on stocktaking, if you are unable to provide reasonable proof of the accident which caused the loss  

2.5 loss/damage arising from order, nationalisation, embargo, quarantine, requisition, compulsory purchase by authority

2.6 fines (and other penalties)

2.7 theft, fraud, wrongful conversion or abstraction by you, your employee or your bailee whether or not in collusion with others or in the course of anyone’s duties

2.8 loss/damage to buildings or structures which are:

2.8.1 in the course of construction or

2.8.2 unoccupied for more than 30 days unless 24 hour security is provided, or the building is within the port confines 

2.9 loss of or damage to electronic recordings arising from electrical/magnetic interference - other than by lightning

2.10 loss of or damage to cargo  

2.11 loss/damage arising from natural disasters, to the extent that compensation is available to uninsured parties under a government sponsored scheme

Qualifications

3 Declaration

3.1 You may add property which you have not previously declared, subject to notifying us within 28 days of acquisition, and to terms to be agreed  

3.2 You will not reduce the insured value of any property during your account year

3.3 You will give us immediate notice of any change in location/working conditions which may increase the risk of a claim. If we do not agree to the increased risk, we will not be liable for resulting claims  

3.4 A statement of value in your certificate reflects information which you have provided and is not binding on us for the purposes of 5-6 below

4 SR&T (Strikes Riots & Terrorist) Risks

4.1 We do not insure you for SR&T risks arising from war - including civil war, revolution, rebellion, insurrection and hostile act by/against a belligerent power

4.2 We do not insure you for SR&T risks which arise while your insured handling equipment is in a listed area

4.3 Subject to 4.4, the Managers may at any time:

4.3.1 update the schedule of listed areas

4.3.2 cease your insurance for SR&T risks entirely

4.4 In case of update or cesser as at 4.3 the Managers will notify you by Circular as at G2:41. The effective date will be at least seven days after the date of the Circular

4.5 Insurance for SR&T risks will automatically terminate on:

4.5.1 hostile detonation of a nuclear weapon (anywhere - whether your property is involved or not)

4.5.2 war (declared or not) between permanent members of the UN Security Council

5 Reimbursement: Loss & Damage

5.1 Damage

5.1.1 We will pay the cost of repair of the property unless you opt not to repair the property, when we will pay the indemnity value of the damaged part

5.1.2 We will, in our discretion, pay reasonable costs of your own materials and labour not exceeding the market cost

5.1.3 We will deduct the value of any part that you can use again

5.1.4 We will not pay for temporary repairs, or for damage arising from use of property in a state of temporary repair, unless we have approved the temporary repair in advance

5.1.5 You may commence permanent repairs immediately after notifying the Managers - provided you keep any damaged part for our inspection

5.2  Actual Total Loss

We will pay the insured value

5.3 Constructive Total Loss (CTL)

If the reasonable repair costs of damage sustained in one accident are estimated to exceed the insured value, we will pay the insured value as a CTL, less any salvage value

6 Reimbursement: Special Cases

We will in no case pay more than the insured value. Subject to this, we will pay as follows:

6.1 Leased Property

We will pay the value of the item which you are liable to pay under a lease  

6.2 Third Party Property

We will pay the amount for which you are liable  

6.3 Tenants Improvements/Betterments

If you make an improvement or betterment we will pay up to the indemnity value. We do not insure you in the case of improvement/betterment by others for your use

Documents/Data

6.4.1 Film, tape, disc and electronic recording or storage media

a. if electronic data is restored or replaced

we will pay the cost of restoring or replacing the media to its condition before the accident, including recreating and assembling data

b. if electronic data is not (or cannot be) restored or replaced

we will pay up to the cost of the media in unexposed or blank form

6.4.2 Documents other than as at 6.4.1:

We will pay up to the cost of blank material plus labour costs of restoration, transcription and copying

Average

If the market value of an item of property at the time of an accident is greater than the insured value, we will reduce reimbursement, calculated as at 5-6 above, by the percentage by which the insured value of the item is less than the market value. This paragraph (7):

7.1 applies only if the insured value is less than 80% of the market value  of the item

7.2 applies separately to each item

7.3 does not apply to freight charges and labour costs  

7.4 does not apply if the insured value is an agreed value

7.5 does not require us to pay more than the insured value for any item of property

8 Storm Earthquake Flood SR&T

An extended definition of accident, stated at G2:40, applies to storm, earthquake, flood and strikes riots & terrorist risks

9 Public Authorities

9.1 We insure you for the additional cost of reinstatement of lost/damaged property solely to comply with a regulation, excluding:

9.1.1 loss/damage which occurred before the commencement of your insurance

9.1.2 loss/damage in respect of which notice was served on you before the loss/damage occurred

9.1.3 loss/damage in respect of undamaged property (or part of property). This exclusion does not apply:

a. to foundations (unless foundations are excluded elsewhere under your policy)
b. if compliance is required in order to ensure repair or reinstatement of damaged property

9.1.4 rates, taxes, duties, charges and assessments arising from capital arising from compliance with the regulation.

9.2 The reinstatement must be completed with reasonable despatch, and in any case within twelve months from the loss/damage, unless the Managers otherwise agree  

10 Debris Removal Costs  

10.1 We insure you for the following costs in respect of insured property damaged as specified at 1 above:

10.1.1 debris removal from the site of the property, or immediately adjacent to it

10.1.2 dismantling/demolishing the property

10.1.3 shoring/propping up the property

10.1.4 clearing drains/sewers

10.2 We do not insure you under this paragraph 10 for costs arising from pollution/contamination

10.3 We do not insure you under any other provision in your policy for costs specified at 10.1

10.4 Costs specified at 10.1 are in excess of the insured value of the property concerned (subject to G2:29.3)

10.5 We only insure you for costs specified at 10.1 if:

10.5.1 the Managers have agreed to the costs or

10.5.2 the Directors decide that the costs were properly incurred

1 We insure you for:

The following arising from an accident as defined at 3.1:

1.1 Loss of Profits

1.2 Increased Cost of Working

1.3 Costs of investigating or verifying a claim under this clause from your accounts or other information or evidence, including legal, survey, accountants and other professional fees (subject to A7:4)

2 We do not insure you under this clause for:

2.1 your liability for sales tax

2.2 war risks and strikes riots & terrorist risks arising from war - including civil war, revolution, rebellion, insurrection and hostile act by/against a belligerent power

2.3 cessation of work

2.4 risks arising directly or indirectly from subsidence unless this is sudden, unintended and unexpected

2.5 risks arising directly or indirectly from faulty repairs during the indemnity period. If there is a dispute on this point the burden is on you

2.6 increases in loss arising from suspension, lapse or cancellation of a lease, licence, contract or order unless arising directly from insured business interruption and then only to the extent that this affects gross earnings during the indemnity period

2.7 increases in loss arising from enforcement of a regulation relating to the use, reconstruction, repair or damage of an insured asset

2.8 loss of market

Qualifications

3 Definitions

3.1 Accident as at 1 above means an accident which results in a claim for loss of or damage to your insured handling equipment or insured property shown as covered for business interruption, which we pay, or which we would have paid except for an applicable deductible and which results in your (wholly/ partly) being unable to provide your insured services

3.2 An extended definition of accident, stated at G2:40, applies to storm, earthquake, flood and strikes riots & terrorist risks

3.3 Loss of Profits as at 1.1 means loss of revenue during the indemnity period less:

3.3.1 savings from reduction in necessary expenses during the indemnity period as a result of an accident

3.3.2 revenue from re-located operations as a result of an accident

3.3.3 taxes saved in consequence of loss of revenue

3.3.4 reduction of loss which would have been made possible by complete/partial resumption of operation of the asset

3.4 Increased Cost of Working as at 1.2 means additional costs during the indemnity period solely to avoid/minimise loss of revenue:

3.4.1 not exceeding the potential loss being avoided/minimised

3.4.2 excluding costs in extinguishing a fire

3.5 Revenue means monies which you receive for providing insured services. We will take account of the previous experience of your operations and probable future experience if no loss/damage had occurred

3.6 Deductible period means the period of time following the accident, as stated in your certificate, during which we do not insure you under this clause

3.7 Indemnity period means:

3.7.1 the period during which revenue is affected, not exceeding 12 months from the termination of the deductible period (subject to 3.7.2)

3.7.2 in the case of loss/damage of media/records for electronic data processing or electronically controlled property or equipment, and data on these, where no other insured asset is lost/damaged, the indemnity period will not exceed 30 consecutive days from the termination of the deductible period

4 Costs  

4.1 We only insure you under 1.3 if:

4.1.1 the Managers have agreed to the costs or

4.1.2 the Directors decide that the costs were properly incurred

4.2 We do not insure you under any other provision in your policy for risks specified at 1.3

5 Change of Risk

5.1 Without prejudice to G2:32 you will give the Managers immediate notice of any change to property or handling equipment available to you which may impact on a risk under this clause.

5.2 If the Managers do not agree the change in risk, we will not be liable for claims caused or increased by the change

6 On Account Payment

6.1 We may at your request make payments on account during the indemnity period provided you produce sufficient evidence to allow us to estimate your loss  

6.2 You will immediately repay to us payments on account if, for any reason, you have been overpaid or your claim turns out to be uninsured

7 SR&T (Strikes Riots & Terrorist) & Piracy Risks

7.1 We do not insure you for SR&T or piracy risks which arise while your insured handling equipment is in a listed area

7.2 Subject to 7.3, the Managers may at any time:

7.2.1 update the schedule of listed areas

7.2.2 cease your insurance for SR&T and/or piracy risks entirely

7.3 In case of update or cesser as at 7.2 the Managers will notify you by Circular as at G2:41. The effective date will be at least seven days after the date of the Circular

7.4 Insurance for SR&T and piracy risks will automatically terminate on:

7.4.1 hostile detonation of a nuclear weapon (anywhere - whether your property is involved or not)

7.4.2 war (declared or not) between permanent members of the UN Security Council

8 Limits

Without prejudice to G2:29-30, your total claim will not exceed any limit which applies, regardless of the number of locations affected by business interruption arising from one accident

1 We insure you for:

The following arising from an accident as defined at 3.1:

1.1 Loss of Profits

1.2 Increased Cost of Working

1.3 Costs of investigating or verifying a claim under this clause from your accounts or other information or evidence, including legal, survey, accountants and other professional fees. (Subject to A8:4)

2 We do not insure you under this clause for:

2.1 your liability for sales tax

2.2 war risks and strikes riots & terrorist risks arising from war - including civil war, revolution, rebellion, insurrection and hostile act by/against a belligerent power

2.3 cessation of work

2.4 risks arising directly or indirectly from subsidence unless this is sudden, unintended and unexpected

2.5 risks arising directly or indirectly from faulty repairs during the indemnity period. If there is a dispute on this point the burden is on you

2.6 increases in loss arising from suspension, lapse or cancellation of a lease, licence, contract or order unless arising directly from insured business interruption and then only to the extent that this affects gross earnings during the indemnity period

2.7 loss of market

2.8 risks arising from nationalisation, requisition or compulsory purchase by an authority of the insured berth or of access to it

Qualifications

3 Definitions

3.1 Accident as at 1.1 means an accident causing physical blockage as a result of which:

3.1.1 ships are unable to gain access to your insured berth and

3.1.2 you are unable (wholly/partly) to provide insured services

3.2 An extended definition of accident, stated at G2:40, applies to storm, earthquake, flood and strikes riots & terrorist risks

3.3 Loss of Profits as at 1.1 means loss of revenue during the indemnity period less:

3.3.1 savings from reduction in necessary expenses during the indemnity period as a result of an accident

3.3.2 revenue from re-located operations as a result of an accident

3.3.3 taxes saved in consequence of loss of revenue

3.3.4 reduction of loss which would have been made possible by complete/partial resumption of operation of the asset

3.4  Increased Cost of Working as at 1.2 means here additional costs during the indemnity period solely to avoid/minimise loss of revenue:

3.4.1 not exceeding the potential loss being avoided/minimised

3.4.2 excluding costs in extinguishing a fire

3.5 Revenue means monies which you receive for providing insured services. We will take account of the previous experience of your operations and probable future experience if no loss/damage had occurred

3.6 Deductible period means the period of time following the accident, as stated in your certificate, during which we do not insure you under this clause

3.7 Indemnity period means the period during which revenue is affected, not exceeding 12 months from the termination of the deductible period

4 Costs  

4.1 We only insure you under 1.3 if:

4.1.1 the Managers have agreed to the costs or

4.1.2 the Directors decide that the costs were properly incurred

4.2 We do not insure you under any other provision in your policy for risks specified at 1.3

5 Change of Risk & Loss Prevention

5.1 Without prejudice to G2:32 you will give the Managers immediate notice of any change in a berth available to you which may impact on a risk under this clause.

5.2 If the Managers do not agree the change in risk, we will not be liable for claims caused or increased by the change

5.3 You will take all reasonable endeavours to:

5.3.1 prevent accidents  

5.3.2 maintain any insured berth and its access in good working order

5.3.3 comply with regulations  

5.4 You will allow the Managers to examine an insured berth and its access at any reasonable time

5.5 The Managers may give notice that your insurance is suspended until you comply with our reasonable requirements for safe operation

6 On Account Payment

6.1 We may at your request make payments on account during the indemnity period provided you produce sufficient evidence to allow us to estimate your loss  

6.2 You will immediately repay to us payments on account if, for any reason, you have been overpaid or your claim turns out to be uninsured

7 SR&T (Strikes Riots & Terrorist) Risks

7.1 We do not insure you for SR&T risks which arise while your insured handling equipment is in a listed area

7.2 Subject to 7.3, the Managers may at any time:

7.2.1 update the schedule of listed areas

7.2.2 cease your insurance for SR&T risks entirely

7.3 In case of update or cesser as at 7.2 the Managers will notify you by Circular as at G2:41. The effective date will be at least seven days after the date of the Circular

7.4 Insurance for SR&T risks will automatically terminate on:

7.4.1 hostile detonation of a nuclear weapon (anywhere - whether your property is involved or not)

7.4.2 war (declared or not) between permanent members of the UN Security Council

8 Limits

Without prejudice to G2:29-30, your total claim will not exceed any limit which applies, regardless of the number of locations affected by business interruption arising from one accident

1 We insure you for:

Your liability for physical destruction/damage of buildings which:

1.1 are leased to you and

1.2 you use in your insured services

2 We do not insure you under this clause:

2.1 where you have a contractual obligation to insure the building

2.2 for risks for which you are insured under any other insurance or for which you would have been insured except for an exclusion/qualification. We also do not insure you for any reduction in the amount recoverable from that other insurance because of:

2.2.1 a deductible or limit of liability

2.2.2 the existence of our insurance (directly or indirectly)

Qualifications

3 Contractual Liabilities

We only insure you for contractual liabilities to the extent that your liability does not exceed what it would have been without the contract

1 We insure you for:

1.1 The liabilities stated at 1.2 below arising out of an accident on a public road in USA, Canada or Mexico and involving a chassis or trailer, or an intermodal shipping container carried on a chassis or trailer, for use on public roads which:

1.1.1 you own, lease, maintain, manage or use or

1.1.2 is used in a declared activity specified in your certificate  

1.2 The following liabilities are insured as stated at 1.1 above, including resulting consequential loss:

1.2.1 for physical loss of and damage to and damage of third party property

1.2.2 for death, injury or illness of any third party

1.2.3 to indemnify a third party for its liability for:

a. physical loss of and damage to third party property
b. death, injury or illness of any third party except as at 1.2.3(c)
c. death, injury or illness of your employee unless excluded at 2.1

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

2.1 for death, injury or illness of your employee, or your employee’s spouse, child, parent or sibling arising out of or relating to employment by you of the employee - or contractual liability to compensate anyone in respect of this

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

2.3 arising from an accident involving a chassis/trailer attached to a road vehicle which is required to be licensed which you (or your employee) own, lease or operate

2.4 in respect of your equipment leased to someone else other than:

2.4.1 to your joint service partner for use in the joint service or

2.4.2 while interchanged to a motor carrier or used in a chassis pool in which you participate

2.5 in respect of your handling equipment used with your consent by someone else

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

2.7 for accidents occurring:

2.7.1 before you accept the cargo for movement on to the insured chassis/trailer

2.7.2 after you move the cargo from the insured chassis/trailer to the place where you finally deliver it

2.8 arising from your product or any part of your product

2.9 arising from your work, after that work has been completed or abandoned. For the purposes of this paragraph (2.9) your work includes manufacture and remanufacture of chassis/trailers but excludes maintenance or repair of chassis/trailers by you

2.10 arising from:

2.10.1 transportation of pollutants as waste

2.10.2 release of gases, fumes or vapours within a building from materials brought there in connection with operations performed by you or on your behalf

2.10.3 investigation, clean up or removal of pollution  

This paragraph (2.10) will prevail in case of inconsistency with G1:1.2 or G1:3

2.11 to the extent that they are incurred/increased by your agreeing to hold harmless a transporter of chassis/trailers  

2.12 for war risks

Qualifications

3         Scope of Insurance

We only insure you to the extent that liabilities are not insured under other insurances available to you and other parties besides the domestic policy

3.2 You will use your best endeavours to recover losses, and pursue indemnity against other parties (and their insurers)

3.3 This insurance:

3.3.1 does not insure other parties

3.3.2 is in excess of any sums recoverable from other parties (or their insurers)

3.3.3 is not automobile or excess automobile liability insurance

3.4 Other parties means parties other than you involved in the accident, and any owner, lessor, lessee, operator or user of the chassis/trailer (or motor vehicle towing it)

4 Domestic Policy

4.1 On your request we will provide you with a certificate of insurance evidencing a policy issued by an approved insurer in USA/Canada, insuring your liability as specified at 1 above (a domestic policy)

4.2 The domestic policy is subject to:

4.2.1 its terms  

4.2.2 a limit each accident equal to the minimum insurance requirements for each person and under the law of the state, province or other jurisdiction for which the policy is issued, not to exceed the limits specified in your certificate  

4.2.3 a retained amount of USD 1 million each accident or the limits of the domestic policy, whichever is the less

4.3 The limits at 4.2 are not in addition to your limit with us. The total of your limits under the domestic policy, and under your insurance with us will therefore not exceed your limit for claims under this clause

4.4 You will be a joint assured together with us under the domestic policy, but will not:

4.4.1 be responsible for payment of premium to the domestic underwriter

4.4.2 exercise any right to cancel the policy

4.4.3 be responsible for the retained amount unless otherwise stated in your certificate  

5 Uniform Intermodal Interchange & Facilities Access Agreement

It is a condition precedent that the Uniform Intermodal Interchange and Facilities Access Agreement (UIIA), or other similar equipment interchange or lease agreement which the Managers have approved, remain in effect and in good standing at all times during your period of insurance

6 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

1 We insure you for:

1.1 Physical loss of and damage to insured carrying equipment arising from:

1.1.1 an accident

1.1.2 war risks on board, strikes riots & terrorist risks or piracy risks

1.1.3 war risks on land

1.2 Your liability for general average and salvage contributions in respect of insured carrying equipment (including war/strikes riots & terrorist risks and piracy)

2 We do not insure you under this clause for:

2.1 physical loss or damage arising from:

2.1.1 defects in design/manufacture

2.1.2 wear and tear

2.1.3 mechanical/electrical breakdown or malfunction

2.1.4 equipment found to be missing on stocktaking, if you are unable to provide reasonable proof of the accident which caused the loss  

2.2 loss/damage to lights, winding handles, tyres/wheels of a chassis/trailer unless due to loss of the chassis/trailer or to an accident also damaging another part of the chassis/trailer

2.3 risks:

2.3.1 while the equipment is leased to someone else

2.3.2 after you cease to have an interest in the equipment

2.4 loss/damage - except actual total loss - to equipment valued as at 7 below at less than:

2.4.1 USD 5000: reefer/tank container; reefer/tank trailer; rail wagon

2.4.2 USD 3000: trailer (except as specified at 2.4.1)

2.4.3 USD 1000: all other carrying equipment

Qualifications

3 Declaration

3.1 You will show in your declaration the number of items - and aggregate insured value on the adjustment date - of each type of carrying equipment

3.2 You will not reduce the insured value of any item during your account year

4 Container Stowage & Securing System

The Directors may reduce or reject a claim arising from container stowage on a ship which you own or charter to the extent that the claim is incurred or increased by:

4.1 your failure to adhere to the relevant provisions of the SOLAS Convention, IMDG Code or any other IMO Code or

4.2 a stowage/securing system which is deficient unless:

4.2.1 the system:

a. complies with classification society recommendations or
b. has been approved by an organisation which the Managers have approved or

4.2.2 you have taken other reasonable measures to ensure the system was appropriate

5 War Risks

We do not insure you for war risks arising from:

5.1 hostile detonation of a nuclear weapon

5.2 war (declared or not) between permanent members of the UN Security Council

5.3 seizure by an authority of your country

5.4 seizure under any customs or quarantine regulation

5.5 ordinary judicial process, failure to pay a fine/penalty or provide security or any financial cause

6 War, Strikes Riots & Terrorist (SR&T) and Piracy Risks

6.1 Insurance for war, SR&T and piracy risks will automatically cease on:

6.1.1 hostile detonation of a nuclear weapon (anywhere - whether your equipment is involved or not) 

6.1.2 was as at 5.2

6.2 We do not insure you for SR&T or piracy risks which arise while your insured
carrying equipment is in a listed area

6.3 Subject to 6.4, the Managers may at any time: 

6.3.1 update the schedule of listed areas

6.3.2 cease your insurance for SR&T and/or piracy risks entirely

6.4 In case of update or cesser as at 6.2 the Managers will notify you by Circular as at G2:41. The effective date will be at least seven days after the date of the Circular

7 Amounts Recoverable

Amounts recoverable from us will not exceed:

7.1 Owned equipment:

7.1.1 Loss:                  insured value at time of loss  

7.1.2 Damage:            reasonable repair costs - not exceeding insured value

7.2 Leased equipment:

7.2.1 Loss:                  amount payable under lease - or insured value if no amount specified

7.2.2 Damage:            reasonable repair costs - not exceeding amount payable under lease

8 Constructive Total Loss (CTL)

If the reasonable repair costs of damage sustained in one accident are estimated to exceed the applicable amount specified at 7 above, we will pay this amount as a CTL, less any salvage value

9 Interest in Ship/Aircraft

G1:5 does not apply to this clause

10 Storm Earthquake Flood SR&T

An extended definition of accident, stated at G2:40, applies to storm, earthquake, flood and strikes riots & terrorist risks

1 We insure you for:

1.1 Reasonable medical expenses as at 1.2 as a result of injury arising from an accident:

1.1.1 on premises which you own or rent - or ways next to premises which you own or rent and

1.1.2 arising from your operations

1.2 The following costs arising as at 1.1:

1.2.1 first aid administered at the time of an accident  

1.2.2 necessary medical, surgery, x-ray and dental services, including prosthetic devices and ambulance, hospital, professional nursing and funeral services

2 We do not insure you under this clause for expenses for injury:

2.1 to any assured or joint assured/co-assured

2.2 to anyone hired to do work for (or on behalf of) you or your tenant

2.3 to anyone injured on that part of your owned or rented premises which the person normally occupies

2.4 to anyone if benefits are payable under workers compensation, disability benefits or similar law whether or not the person is your employee

2.5 to anyone injured taking part in recreational activities

2.6 excluded under N3:2

2.7 due to war (declared or not) or any act incident to war - including civil war, insurrection, rebellion and revolution

Qualifications

3 No Fault

We will make payments as specified at 1 above regardless of fault

4 Injuries Off Premises

We insure injuries occurring off premises which you own or rent only if:

4.1 the accident takes place in the coverage territory and during the period of insurance and

4.2 the expenses are incurred and reported to us within one year of the accident and

4.3 the injured person submits to examination (at our expense) by physicians of our choice as often as we require

1 We insure you for:

The following arising from an accident as defined at 3.1:

1.1 Loss of Profits

1.2 Increased Cost of Working

1.3 Costs of investigating or verifying a claim under this clause from your accounts or other information or evidence, including legal, survey, accountants and other professional fees. (Subject to A13:6.)

2 We do not insure you under this clause for:

2.1 your liability for sales tax

2.2 war risks and strikes riots & terrorist risks arising from war - including civil war, revolution, rebellion, insurrection and hostile act by/against a belligerent power

2.3 cessation of work

2.4 risks arising directly or indirectly from subsidence unless this is sudden, unintended and unexpected

2.5 risks arising directly or indirectly from faulty repairs during the indemnity period. If there is a dispute on this point the burden is on you

2.6 increases in loss arising from suspension, lapse or cancellation of a lease, licence, contract or order unless arising directly from insured business interruption and then only to the extent that this affects gross earnings during the indemnity period

2.7 increases in loss arising from enforcement of a regulation relating to the use, reconstruction, repair or damage of an insured asset

2.8 risks arising from nationalisation, requisition or compulsory purchase by an authority of an insured berth or of access to it

2.9 loss of market

Qualifications

3 Accident

Accident as at 1 above means an accident:  

3.1 which results in a claim for loss of or damage to your insured handing equipment or insured property, which we pay, or which we would have paid except for an applicable deductible and which results in your (wholly/ partly) being unable to provide your insured services or

3.2 causing physical blockage as a result of which:

3.2.1 ships are unable to gain access to your insured berth and

3.2.2 you are unable (wholly/partly) to provide insured services or

3.3 causing damage to:

3.3.1 property near insured property and preventing, hindering or denying access to, insured property (whether or not the insured property is itself lost/damaged).

3.3.2 property which is operated by public supply undertakings as below from which you obtain electricity, gas or water, or receive telecommunication services:

a. electricity: generating/sub station
b. gas (including connected natural gas suppliers): land based premises
c. water: water works or pumping station
d. land based telecommunications: premises

4 Accident (Storm Earthquake Flood SR&T)

An extended definition of accident, stated at G2:40, applies to storm, earthquake, flood and strikes riots & terrorist risks

5 Definitions

5.1 Loss of Profits as at 1.1 means loss of revenue during the indemnity period less:

5.1.1 savings from reduction in necessary expenses during the indemnity period as a result of an accident

5.1.2 revenue from re-located operations as a result of an accident

5.1.3 taxes saved in consequence of loss of revenue

5.1.4 reduction of loss which would have been made possible by complete/partial resumption of operation of the insured asset

5.2 Increased Cost of Working as at 1.2 means additional costs during the indemnity period solely to avoid/minimise loss of revenue:

5.2.1 not exceeding the potential loss being avoided/minimised

5.2.2 excluding costs in extinguishing a fire

5.3 Revenue means monies which you receive for providing insured services. We will take account of the previous experience of your operations and probable future experience if no loss/damage had occurred

5.4 Deductible period means the period of time following the accident, as stated in your certificate, during which we do not insure you under this clause

5.5 Indemnity period means:

5.5.1 the period during which revenue is affected, not exceeding 24 months from the termination of the deductible period - unless otherwise stated in your certificate (subject to 5.5.2 & 5.5.3)

5.5.2 in the case of loss/damage of media/records for electronic data processing or electronically controlled equipment, and data on these, where no other insured asset is lost/damaged, the indemnity period will not exceed 30 consecutive days from the termination of the deductible period

5.5.3 in the case of loss/damage arising from an accident as defined at 3.3 above, the indemnity period will not exceed 3 months from the termination of the deductible period

6 Costs  

6.1 We only insure you under 1.3 if:

6.1.1 the Managers have agreed the costs or

6.1.2 the Directors decide that the costs were properly incurred

6.2 We do not insure you under any other provision in your policy for risks specified at 1.3

7 Change of Risk & Loss Prevention

7.1 Without prejudice to G2:32 you will give the Managers immediate notice of any change in the property, handling equipment or berths available to you which may impact on a risk under this clause.

7.2 If the Managers do not agree to the change in risk, we will not be liable for claims caused or increased by it

7.3 You will take all reasonable endeavours to:

7.3.1 prevent accidents at your insured berth

7.3.2 maintain any insured berth and its access in good working order

7.3.3 comply with regulations in respect of your insured berth

7.4 You will allow the Managers to examine an insured berth and its access at any reasonable time

7.5 The Managers may give notice that your insurance is suspended until you comply with our reasonable requirements for safe operation of your insured berth

8 On Account Payment

8.1 We may at your request make payments on account during the indemnity period provided you produce sufficient evidence to allow us to estimate your loss  

8.2 You will immediately repay to us payments on account if, for any reason, you have been overpaid or your claim turns out to be uninsured

9 SR&T (Strikes Riots & Terrorist) & Piracy Risks

9.1 The Managers may at any time decide that we will not insure you for SR&T or piracy risks either entirely or in respect of your property or equipment which is in any country, territory or area (whether of land or sea). The Managers will notify you by Circular as at G2:41 of this decision, which will take effect at 2400 GMT on the seventh day after notice is given 

9.2 Insurance for SR&T and piracy risks will automatically terminate on:

9.2.1 hostile detonation of a nuclear weapon (anywhere - whether your property, equipment or insured berth is involved or not)

9.2.2 war (declared or not) between permanent members of the UN Security Council

10 Limit

Without prejudice to G2:29-30, your total claim will not exceed any limit which applies, regardless of the number of locations affected by business interruption arising from one accident