Allianz Insurance plc

Construction
Project All Risks

Policy Wording
 Construction Project All Risks Policy Wording

Contents Thank you for choosing

Allianz Engineering.
Policy Definitions 2 Cover Five
Cover One Public Liability 27
Contract Works 4 Limit of Liability 28
Limit of Liability 5 Extensions 29
Extensions 6 Exclusions 38
Exclusions 10 Conditions 40 Our technical expertise built over many years of
Conditions 11 Cover Six providing engineering insurance and inspection
Cover Two Contractors JCT 6.5.1 41 products and services means you can trust us to
Owned Plant and Limit of Liability 42 be there when you need us.
Machinery 12 Exclusions 43
Limit of Liability 13 Conditions 44 If you need further details or have any questions,
Extensions 14 Exclusions your broker or local Allianz Engineering branch
Exclusions 15 Applying to Cover One
will be delighted to help. Alternatively help and
Cover Two Cover Three & guidance can be obtained from:
Cover Three
Hired In Plant 16 Cover Four 45
Allianz Engineering
Limit of Liability 17 General Exclusions
Head Office
Exclusions 18 Applying to the Policy 47
Haslemere Road
Cover Four General Conditions
Liphook
Advanced Business Applying to the Policy 48
Hampshire
Interruption 19 Claims Conditions GU30 7UN
Limit of Liability 20 Applying to the Policy 52 UK
Basis of Settlement 21
Complaints Procedure 55
Extensions 24
Notifying a Claim 55
Exclusions 25
Conditions 26 Financial Services
Compensation Scheme 55
Fair Processing Notice 56

Important
The insurance cover
provided by this Policy
may be varied by
clauses printed in
the Schedule.

Please read both the

Policy and Schedule to
make sure that you
have the insurance
cover required.
Construction Project All Risks Policy Wording

Construction Project All Risks Policy

Allianz Insurance plc (referred to as 'the Insurers' or 'the Insurer') will indemnify or
otherwise compensate the Insured named in the Schedule (referred to as ‘the Insured’) in
accordance with and subject to the terms and conditions of the insurance in return for the
Insured having paid or agreed to pay the Insurance Premium for the Period of Insurance.

Your insurance policy is made up of this Policy including all Exclusions

Extensions and Conditions the Schedule and the proposal which you
made to the Insurers prior to taking out this cover. These documents
shall be read together as one contract.

Any word or expression to which a specific meaning has been given

shall have the same meaning wherever it may appear in this Policy.

Please read all the pages of this Policy and Schedule carefully to
ensure that your insurance requirements are met.

For Allianz Insurance plc

Jonathan Dye
Chief Executive

Allianz Engineering is a trading name used by

Allianz Insurance plc

1
Construction Project All Risks Policy Wording

Policy Definitions

The following definitions apply to this Policy unless amended by 8 Contractor

Section Definitions and are denoted by capital letters The party undertaking the Contract Works on behalf of the
throughout this Policy. Employer and whose name is detailed in the Schedule as the
Contractor.
1 Accident
Damage to Contract Works or Temporary Works insured by Cover 9 Contractors Plant
One – Contract Works. Tools tackle plant and equipment belonging to the Insured or for
which the Insured is responsible under a hire purchase or lease
2 Business Activity agreement.
The undertaking of the Contract Works shown in the Schedule
including the provision by the Insured of sports social or welfare 10 Damage
organisation primarily for Employees. a In respect of Cover One Cover Two Cover Three and Cover
Four : physical loss physical destruction or physical damage.
3 Commissioning b In respect of Cover Five and Cover Six: loss damage or
Operational testing commencing either with the introduction into destruction.
the Contract Works of feedstock or other materials for processing
or handling or when supply to a system commences. 11 Employee
a Any person under a contract of service or apprenticeship with
Commissioning does not include any processes involving
the Insured and
chemical action or reaction unless the prior agreement of the
b shall extend to include any of the following persons whilst
Insurers has been obtained.
working for the Insured in connection with the Business
Activity
4 Contract
The agreement under which the Contract Works are undertaken. i any labour master or labour only subcontractor or person
supplied by him
5 Contract Value ii any self-employed person providing labour only
The awarded value of the Contract Works including the value of iii any trainee or person undergoing work experience
Free Issue Materials and all other costs associated with the iv any voluntary helper
completion of the Contract. v any person who is borrowed by or hired to the Insured.

6 Contract Works 12 Employer

The permanent works undertaken in the performance of the The party on whose behalf the Contract Works are undertaken
Contract and allocated to or incorporated in the works including and whose name is detailed in the Schedule as the Employer.

a Temporary Works and

13 Enterprise
b Free Issue Materials.
The completed Contract Works the subject of the Contract
Contract Works does not include constructed for the generation of income.

i prototype experimental untried or unproven works or

14 Excess
machinery
The monetary amount(s) which the Insured shall bear in respect
ii Contractors Plant
of each and every occurrence for which the Insured is indemnified
iii Temporary Buildings
by this Policy.
iv Hired In Plant.

15 Free Issue Materials

7 Contract Works Programme Materials supplied by the Employer or their agents to the
The construction schedule or work programme that details the
Contractor for incorporation in the Contract Works but for which
work to be undertaken and the scheduled date(s) of completion
the Insured is responsible under the terms of the Contract and for
of the insured Contract Works.
which the value has been declared to the Insurers.

2
Construction Project All Risks Policy Wording

Policy Definitions continued

16 Hired In Plant 24 Section

Tools tackle plant and equipment site huts and other temporary The parts of this Policy that detail the insurance cover provided for
accommodation hired by the Insured solely for use in connection each individual Section of this Policy.
with the Contract Works and for which they are responsible under
the terms of their hiring agreement or otherwise but not on hire 25 Temporary Buildings
purchase or subject to a lease agreement or on free loan. Site huts and other temporary accommodation and their contents
(other than computer or other data processing equipment)
17 Injury belonging to the Insured or for which the Insured is responsible
under a hire purchase or lease agreement.
a Bodily injury death disease illness mental injury or nervous
shock.
b Invasion of the right of privacy false arrest false imprisonment 26 Temporary Works
false eviction or malicious prosecution of any person. Structures and their materials that are necessary for access to or
support of the works and will
18 Insured Property a be removed from the contract site on or before the date of
Contract Works Contractors Plant Free Issue Materials Hired In completion of the works
Plant Temporary Buildings and Temporary Works. b not normally be used again in connection with other
contracts.
19 Offshore Installations
a Any installation in the sea or tidal waters which is intended for
27 Territorial Limits
underwater exploitation of mineral resources or exploration a In respect of Cover One Cover Two Cover Three Cover Four
with a view to such exploitation. and Cover Five
b Any installation in the sea or tidal waters which is intended for Great Britain Northern Ireland the Isle of Man and the Channel
the storage or recovery of gas. Islands.
c Any pipe or system of pipes in the sea or tidal waters. b In respect of Cover Five only
d Any installation which is intended to provide accommodation Elsewhere in the world in respect of injury or Damage caused
for persons who work on or from the locations specified in by or arising from non-manual activities undertaken solely in
items a b or c in this Definition. connection with the Business Activity of any partner director
or Employee of the Insured normally resident within the
20 Period of Insurance territories specified in definition a above and occurring during
Period from the effective date to the expiry date as shown in the any journey or temporary visit.
Schedule.
28 Testing
21 Policy The application of power or driving force to an item of machinery
The contract of insurance formed of the Policy wording Schedule prior to the introduction of feedstock or raw materials or the
and any proposal made by the Insured or on their behalf to the application of a load.
Insurers (whether or not such proposal is recorded in writing).
29 The Insured
22 Products The Insured named and shown in the Schedule.
Any goods or other property (including their containers packaging
labelling and instructions for use) sold supplied delivered installed 30 The Insurers
erected repaired altered treated or tested by the Insured in Allianz Insurance plc.
connection with the Business Activity and not in the charge or
control of the Insured. As required by the context of the sentence(s) or paragraph(s) in
which they are present throughout this Policy Definitions shall be
read to:
23 Schedule
The part of this Policy that details proposal and other information i be plural where singular or singular where plural
forming the basis of this contract and that shows the Sections of
ii include any gender where gender is referred to
this Policy selected.
iii appear in current past or future tense. 3
Construction Project All Risks Policy Wording

Cover One – Contract Works

Damage to the Contract Works described in the Schedule anywhere Damage to the Contract Works described in the Schedule anywhere
in the Territorial Limits occurring during the Period of Insurance in the Territorial Limits occurring during the maintenance or defects
liability period
a Transit
while in transit other than by sea or air to and from the contract c Maintenance
site (including incidental storage for a period not exceeding
i from a defect originating prior to the commencement of this
fourteen (14) calendar days) from the commencement of loading
period or
on to transport vehicles until the completion of unloading at the
ii caused by the Contractor in the course of any operations they
destination.
carry out at the contract site for the purpose of remedying any
defects in the Contract Works or otherwise fulfilling the
b Contract Site maintenance obligations under the terms of the Contract.
at the contract site until
i the issue of a certificate of completion or taking over Provided that c above
certificate or 1 shall not exceed the period shown in the Schedule from the
ii the completion of construction or issue of a certificate of completion or taking over certificate or
iii until taken into use completion of construction or being taken into use whichever
is the earlier
whichever is the earlier and for a further fourteen (14) calendar
2 applies to the extent that the Contractor is responsible under
day period where the Contractor is required to insure under the
the terms of the Contract.
terms of the Contract.

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Construction Project All Risks Policy Wording

Cover One – Limit of Liability

The liability of the Insurers shall not exceed the lesser of

a the Contract Value plus the cost of any additions amendments or
variations including the value of Free Issue Materials or
b the Limit of Liability shown in the Schedule

and in addition
c any amounts shown in the Extensions

in respect of any one accident or series of accidents arising from one

occurrence of Damage.

The amount under b above may be increased by not more than the
percentage shown in the Schedule should the Contract Value plus the
cost of any additions amendments or variations including the value of
any Free Issue Materials exceed the Limit of Liability shown in the
Schedule.

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Construction Project All Risks Policy Wording

Cover One – Extensions

Cover One is extended to cover 4 Fire Brigade Charges

the cost of charges arising from the activities of the Fire Brigade in
1 Professional Fees dealing with the consequences of Damage for which the Insurers
architects surveyors consulting engineers or other professional have admitted liability.
fees in accordance with those authorised by the appropriate
professional body necessarily incurred in the reinstatement of the Provided that the liability of the Insurers shall not exceed the
Contract Works following Damage for which the Insurers have amount shown in the Schedule.
admitted liability but not the cost of preparing a claim under this
Policy. 5 Offsite Storage
Damage to Contract Works while in store at any location in the
2 Breakdown or Explosion Territorial Limits other than the contract site for a period not
Damage to new and unused machinery forming part of the exceeding six (6) months.
Contract Works caused by electrical or mechanical breakdown or Provided that
explosion.
a the Contract Works are ready for delivery to the contract site
This Extension shall continue for a period of b allocation to an insured Contract can be proved
a seven (7) calendar days from the commencement of Testing c the value of the Contract Works in store at any one location
of an individual item and shall not exceed the amount shown in the Schedule
b one (1) calendar month from the commencement of unless the prior consent of the Insurers has been obtained.
Commissioning.
6 Debris Removal
3 Plans the cost necessarily and reasonably incurred by the Insured in
the cost of materials and labour necessarily incurred to restore
plans drawings and other documents held at the contract site a removing debris
following Damage for which the Insurers have admitted liability. b dismantling or demolishing
c shoring up or propping
Provided that the liability of the Insurers shall not exceed the
amount shown in the Schedule. following Damage for which the Insurers have admitted liability.

Provided that the liability of the Insurers shall not exceed the
amount shown in the Schedule.

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Construction Project All Risks Policy Wording

Cover One – Extensions continued

Cover One is extended to cover c if the liability of the Insurers under this Policy apart from this
Extension shall be reduced by the application of any of the
7 European Union and Local Authorities Cost terms Conditions and Exclusions of this Policy then the liability
the additional cost of reinstatement of the Contract Works subject of the Insurers under this Extension in respect of any such
to Damage for which the Insurers have admitted liability as may item shall be reduced in like proportion
be incurred solely to comply with European Union legislation and d all the Conditions of this Policy except insofar as they may be
/ or building or other regulations under or framed in pursuance of expressly varied for the purposes of this Extension shall apply
any act of parliament and / or with by-laws of any municipal or as if they had been incorporated into this Extension
local authority and / or any change by the Secretary of State to e the liability of the Insurers shall not exceed the amount shown
regulations with or without an act of parliament and / or the in the Schedule.
Insurers requirements to replace an automatic sprinkler
installation in accordance with the current LPC Sprinkler Rules or 8 Speculative Building
any change in interpretation of existing regulations provided that Damage to buildings constructed by the Insured other than under
a the amount recoverable under this Extension shall not include: Contract

i the cost incurred in complying with any of the legislation a for a period not exceeding one hundred and eighty (180)
or requirements or regulations or by-laws detailed in this calendar days for domestic buildings or ninety (90) calendar
Extension days for commercial buildings following Practical Completion or
b until the date of sale occupation or hand over whichever
1 in respect of Damage not insured by this Policy occurs first.
2 under which notice has been served upon the Insured
prior to the happening of the Damage Practical Completion means the completion of construction apart
3 in respect of Insured Property or portions of Insured from decorations finishes and fitments that will be chosen by the
Property which have not suffered Damage other than purchaser or tenant.
foundations (unless foundations are specifically
excluded or not insured by this Policy) of that portion 9 Expediting Expenses and Temporary Repairs
of the Insured Property subject to Damage the necessary and reasonable additional cost of effecting
ii the additional cost that would have been required to make temporary repairs and expediting permanent repair replacement
good the Insured Property subject to Damage to a or rectification including overtime weekend and shift working
condition equal to its condition when new had the payments plant hire charges express delivery including airfreight
necessity to comply with any of the legislation or following Damage for which the Insurers have admitted liability
regulations or by-laws or requirements detailed in this but excluding any cost solely to expedite the completion of any
Extension not arisen construction or installation of Insured Property that has not
iii the amount of any rate or tax or duty or development or suffered Damage.
other charge or assessment arising out of capital Provided that the liability of the Insurers shall not exceed the
appreciation which may be payable in respect of the amount shown in the Schedule.
Insured Property or by the owner of the property by
reason of compliance with any of the legislation or
regulations or by-laws detailed in this Extension
b the work of reinstatement is commenced and carried out
within a reasonable timescale and in any case completed
within twelve (12) months after the occurrence of the
Damage or within such further time as the Insurers may
during that twelve (12) months in writing allow and may be
carried out wholly or partially upon another site (if the
legislation or regulations or by-laws or requirements detailed
in this Extension so necessitate) subject to the liability of the
Insurers under this Extension not being thereby increased

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Construction Project All Risks Policy Wording

Cover One – Extensions continued

Cover One is extended to cover

11 Additional Costs of Completion of Unbuilt
10 Avoidance of Impending Damage Works
the Additional Cost of Construction incurred by the Insured in the
the cost incurred by the Insured in taking exceptional measures
event of Damage to the Contract Works for which liability has
that are reasonable to avoid or reduce impending Damage which
been admitted (or would have been admitted but for the
would have resulted in a claim under this Policy.
application of the Excess).
Provided that
Provided that the liability of the Insurers shall not exceed the
a the impending Damage did not arise from any defect in the amount shown in the Schedule.
Insured Property
b the impending Damage did not arise from a reasonably This Extension does not include any cost
foreseeable cause a which would have been incurred irrespective of whether the
c the Damage would have been the natural outcome to be Damage had occurred
expected in the absence of the measures taken b incurred solely to expedite the completion of the Contract or
d the Insurers are satisfied that Damage which would have been any part of the Contract at an earlier date than would have
insured under this Policy has been avoided or reduced in been attained had the Damage not occurred
consequence of the measures taken c associated with redesigning altering adding to or improving
e the liability of the Insurers shall not exceed the cost which the Contract Works or rectification of defects or faults or
would have been incurred had the measures not been taken elimination of any deficiencies carried out after the
and Damage insured by this Policy had occurred. occurrence of the Damage or any increase in the cost as a
result of redesigning alteration addition or improvement
d or additional cost resulting from any delay due to the inability
of the Insured to provide sufficient funds for the repair or
replacement of the Contract Works suffering the Damage
e in respect of any
i additional insurance premiums
ii management expenses and/or overheads of any kind
whatsoever
iii idle time costs in respect of Contractors Plant Temporary
Buildings Hired In Plant or labour
iv additional finance charges or legal expenses
v any change from the Contract Works programme which
would otherwise have occurred had it not been for the
Damage
f arising from or in respect of any other consequential losses
not specifically provided for in this Extension
g incurred which is covered elsewhere in this Policy
h arising out of avoidable delay in making good the Damage or
completing the Contract Works.
Definition
Additional Cost of Construction
For the purposes of this Extension Additional Cost of Construction
shall mean the additional amount by which the cost of Contract
Works uncommenced or unbuilt at the date of the Damage shall
exceed the cost which would have been incurred but for the
occurrence of the Damage.

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Construction Project All Risks Policy Wording

Cover One – Extensions continued

Cover One is extended to cover

12 Munitions of War
General Exclusion 1 - War and Kindred Risks shall not apply to
Damage to Insured Property from or occasioned by the
detonation of munitions of war or parts thereof in or about the
site of the Contract Works provided that the presence of such
munitions does not result from a state of war current at the time
of such Damage.

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Construction Project All Risks Policy Wording

Cover One – Exclusions

Cover One does not cover

1 Defective Design Material or Workmanship

Damage and the cost necessary to replace repair or rectify
a Insured Property which is in a defective condition due to a
defect in design plan specification materials or workmanship
of such Insured Property or any part thereof
b Insured Property Damaged to enable the replacement repair
or rectification of Insured Property excluded by a above.

Paragraph a above shall not apply to other Insured Property which

is free of the defective condition but is Damaged in consequence
thereof.

For the purposes of this Policy and not merely this Exclusion the
Insured Property shall not be regarded as Damaged solely by
virtue of the existence of any defect in design plan specification
materials or workmanship in the Insured Property or any part
thereof.

2 Existing Property
Damage to any property which existed on the contract site prior
to the commencement of the Contract Works.

3 Breakdown or Explosion
Damage to any part of the Contract Works caused by its own
electrical or mechanical breakdown or explosion other than
provided for under Cover One - Extension 2 Breakdown or
Explosion.

4 Contract Conditions
Damage for which the Insured or any other insured party is not
responsible under the terms of the Contract.

5 Wear and Tear or Deterioration

the cost of rectification of wear and tear erosion corrosion or
other deterioration caused by or naturally resulting from ordinary
work use or exposure but not Damage insured by this Policy
resulting from such occurrence unless otherwise excluded.

6 Excess
the amount(s) shown in the Schedule as the Excess for Cover
One in respect of each and every occurrence of Damage.

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Construction Project All Risks Policy Wording

Cover One – Conditions

1 Series Loss 3 Multiple Insureds

If the development or discovery of a defect in any part of the If there is more than one insured party each operating as a
Contract Works shall indicate that a similar defect exists separate and distinct entity then this Policy shall apply in the same
elsewhere in the Contract Works the Insured shall immediately manner and to the same extent as if individual policies had been
investigate and if necessary rectify the defects in any Contract issued to each party.
Works insured under this Policy at their own expense or
alternatively bear the cost of all Damage arising out of the defect. Provided that
a the total liability of the Insurers to all of the insured parties
2 Consecutive Damage collectively shall not exceed the Limit of Liability
For the purpose of interpreting the application of Cover One - b any payment or payments by the Insurers to any one or more
Exclusion 6 Excess Damage to Insured Property at any one insured party shall reduce to the extent of that payment the
location by storm tempest or flood in one continuous period of Insurers liability to all parties arising from any one event giving
seventy two (72) hours shall be dealt with as one accident or rise to a claim under this Policy
series of accidents arising from one occurrence. c the insured parties shall at all times preserve any available
contractual rights agreements and remedies in the event of
Damage
d the Insurers shall be entitled to avoid liability to or claim
damages from any of the insured parties in circumstances of
fraud material misrepresentation material non-disclosure or
breach of any Condition in this Policy each referred to in this
clause as a vitiating act
e the Contract is performed in Great Britain Northern Ireland
the Isle of Man or the Channel Islands.

It is however agreed that

i a vitiating act committed by one insured party shall not
prejudice the right to indemnity of any other insured party
who has an insurable interest and who has not committed a
vitiating act
ii the Insurers agree to waive all rights of subrogation which
they may have or acquire against any insured party except
where the rights of subrogation arise from a vitiating act in
which circumstances the Insurers may enforce such rights
notwithstanding the continuing or former status of the
vitiating party as an Insured
iii unless named in the Schedule as an Insured Party any lenders
to the project shall not be entitled to any indemnity under this
Policy for Damage in respect of which the Insurers are by
reason of a vitiating act no longer liable to indemnify any one
or more other insured party.

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Construction Project All Risks Policy Wording

Cover Two – Owned Plant and Machinery

Damage to
a Contractors Plant and
b Temporary Buildings

in use in transit or in temporary storage all in connection with the

Contract Works anywhere in the Territorial Limits occurring during
the Period of Insurance.

Provided that where Contractors Plant or Temporary Buildings have

been loaned or hired out insurance under Cover Two is conditional
on the terms of the loan or hire
i being no less onerous than Model Conditions for the hiring of
Plant approved by The Construction Plant-hire Association and
ii applying during transit to and while at the site until returned to or
collected by the Insured.

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Construction Project All Risks Policy Wording

Cover Two – Limit of Liability

The liability of the Insurers shall not exceed in respect of Contractors

Plant and Temporary Buildings
a the Limit of Liability shown in the Schedule
Provided that the liability of the Insurers for any individual item of
Insured Property shall not exceed the market value of the item at
the time of the Damage
and in addition
b any amounts shown in the Extensions

in respect of any one accident or series of accidents arising from one

occurrence of Damage.

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Construction Project All Risks Policy Wording

Cover Two – Extensions

Cover Two is extended to cover

1 Damage to Security Devices

the cost incurred in repairing or replacing any immobiliser
locating tracking or other security device permanently fitted to
the Insured Property following Damage as a result of theft or
attempted theft for which the Insurers have admitted liability.

Provided that
a the liability of the Insurers shall not exceed the amount shown
in the Schedule
b Cover Two - Exclusion 8 Excess does not apply to this
Extension.

2 Loss of Keys
the cost incurred in replacing the lock cylinder of any security
device permanently fitted to any Insured Property following
Damage to the keys operating the security device.

Provided that
a the liability of the Insurers shall not exceed the amount shown
in the Schedule
b Cover Two - Exclusion 8 Excess does not apply to this
Extension.

3 Repair Cost Investigation

the cost incurred in repair investigations and tests by consulting
engineers following Damage to Insured Property for which the
Insurers have admitted liability.

Provided that
a the prior written agreement of the Insurers has been obtained
b the liability of the Insurers does not exceed the amount shown
in the Schedule during any one Period of Insurance
c the Insurers shall not be liable under this Extension for any
cost incurred in preparing a claim under this Policy.

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Construction Project All Risks Policy Wording

Cover Two – Exclusions

Cover Two does not cover 6 Overloading or Abnormal Conditions

Damage to any item of
1 Breakdown or Explosion
a Contractors Plant or Temporary Buildings caused by or arising
Damage to the Insured Property caused by its own electrical or
from the imposition of abnormal conditions deliberate
mechanical breakdown or its own explosion.
overloading or overload testing other than overload testing in
accordance with the Code of Practice for the Safe Use of
2 Excluded Parts and Components Cranes BS7121 including any subsequent amendments or
Damage to cutting edges tools trailing cables flexible pipes
revisions
driving belts and chains or conveyor bands unless accompanied
b Contractors Plant during overload testing in accordance with
by Damage to the complete item.
the Code of Practice for the Safe Use of Cranes BS7121
including any subsequent amendments or revisions and
3 Materials Processed or Foreign Bodies caused by or arising from a defect in the item.
Damage caused by materials processed or treated by the Insured
Property or foreign bodies entering the Insured Property with the
7 Wear and Tear or Gradual Deterioration
materials.
the cost of rectification of

4 Tyres a wear and tear erosion corrosion or other deterioration caused

Damage to tyres by the application of brakes or by punctures cuts by or naturally resulting from ordinary work use or exposure
or bursts. b gradually developing flaws or fractures which do not
necessitate immediate stoppage
5 Maintenance Faulty Workmanship or but not Damage insured by this Policy resulting from a or b unless
Application of Tools otherwise excluded.
the cost of
a maintenance 8 Excess
b rectification of faulty workmanship occurring during the the amount(s) shown in the Schedule as the Excess for Cover
execution of repairs Two in respect of each and every occurrence of Damage.

but not Damage resulting from a or b unless otherwise excluded

c Damage caused by the direct application of tools.

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Construction Project All Risks Policy Wording

Cover Three – Hired In Plant

The Insured’s legal liability under the terms of their hiring agreement
or otherwise to pay
a compensation for Damage to Hired In Plant anywhere in the
Territorial Limits during the Period of Insurance
b continuing hire charges as a result of Damage to Hired In Plant for
which indemnity is provided by a above.

In addition the Insurers will pay all legal expenses for which the
Insured may be liable where legal proceedings have been defended
with the written consent of the Insurers.

Provided that the liability of the Insurers under Cover Three for
i Damage and continuing hire charges in respect of any Hired In
Plant which is more than one (1) year old shall be no more than
the liability which would be incurred under the Model Conditions
for the hiring of plant approved by The Construction Plant-hire
Association
ii Damage to Hired in Plant while loaned or hired out is conditional
on the terms of the agreement under which the loan or hiring out
takes place being no less onerous than the terms under which the
Hired In Plant has been hired by the Insured unless otherwise
agreed by the Insurers.

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Construction Project All Risks Policy Wording

Cover Three – Limit of Liability

The liability of the Insurers shall not exceed

a the Limit of Liability shown in the Schedule

and in addition
b any amounts shown in the Extensions

in respect of any one accident or series of accidents arising from one

occurrence of Damage.

17
Construction Project All Risks Policy Wording

Cover Three – Exclusions

Cover Three does not cover

1 Tyres
Damage to tyres by the application of brakes or by punctures cuts
or bursts.

2 Overloading or Abnormal Conditions

Damage to any item of Hired In Plant
a caused by or arising from the imposition of abnormal
conditions deliberate overloading or overload testing other
than overload testing in accordance with the Code of Practice
for the Safe Use of Cranes BS7121 including any subsequent
amendments or revisions
b during overload testing in accordance with the Code of
Practice for the Safe Use of Cranes BS7121 including any
subsequent amendments or revisions and caused by or
arising from a pre-existing defect in the item.

3 Wear and Tear or Gradual Deterioration

the cost of rectification of
a wear and tear erosion corrosion or other deterioration caused
by or naturally resulting from ordinary work use or exposure
b gradually developing flaws or fractures which do not
necessitate immediate stoppage

but not Damage insured by this Policy resulting from a or b unless

otherwise excluded.

4 Excess
the amount(s) shown in the Schedule as the Excess for Cover
Three in respect of each and every occurrence of Damage.

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Construction Project All Risks Policy Wording

Cover Four – Advanced Business Interruption

Definitions Cover

1 Indemnity Period The Financial Loss of the Insured resulting from interruption or
The period beginning with the date on which but for the interference with the Contract Works Programme which causes delay
interruption or interference the scheduled start of commercial in the scheduled start of commercial operation or sale of the
operation or sale of the Enterprise would have taken place and Enterprise during the Indemnity Period in consequence of an
ending not later than the Indemnity Period shown in the Schedule Accident.
during which the results of the Enterprise shall be affected by the
Provided that
interruption or interference and subject to the Time Exclusion
shown in the Schedule. 1 payment has been made or liability admitted for the Accident or
2 payment would have been made or liability admitted for the
2 Time Exclusion Accident but for the operation of the Excess.
The period beginning with the date on which but for the
The Basis of Settlement for Cover Four shall be either
interruption or interference the scheduled start of commercial
operation or sale of the Enterprise would have taken place and Option A Advanced Loss of Gross Profit or
ending not later than the Time Exclusion period shown in the Option B Advanced Loss of Gross Revenue or
Schedule during which Option C Advanced Loss of Gross Rent or
a the Insured shall bear all direct or indirect Financial Loss or Option D Loss of Bank Interest
cost and whichever is shown in the Schedule.
b the Insurers shall not be liable for direct or indirect Financial
Loss or cost.

19
Construction Project All Risks Policy Wording

Cover Four – Limit of Liability

The liability of the Insurers in respect of Financial Loss shall not exceed
the amount shown in the Schedule in respect of any one accident or
series of accidents arising from one occurrence.

Automatic Reinstatement of the Limit of Liability

Payment made by the Insurers under Cover Four shall not reduce the
Limit of Liability stated shown in the Schedule but the Insured shall
pay to the Insurers on request an additional premium to be agreed for
such automatic reinstatement of cover.

20
Construction Project All Risks Policy Wording

Cover Four – Basis of Settlement

Option A – Advanced Loss of Gross Profit Gross Profit

The amount by which the sum of the Turnover and the value of the
Financial Loss means closing stock shall exceed the sum of the opening stock and the
amount of the Uninsured Working Expenses.
i in respect of reduction in Turnover the sum produced by applying
the Anticipated Rate of Gross Profit to the amount by which the
Notes
Turnover during the Indemnity Period shall in consequence of the
i The values of the opening and the closing stocks shall be arrived at
interruption or interference fall short of the Anticipated Turnover
in accordance with the normal accountancy methods of the
ii in respect of increase in cost of working the additional
Insured due provision being made for depreciation.
expenditure necessarily and reasonably incurred for the sole
purpose of avoiding or diminishing the reduction in Turnover ii The words and expressions used in this Definition shall have the
which but for that expenditure would have taken place during the meaning usually attached to them in the books and accounts of
Indemnity Period in consequence of the interruption or the Insured.
interference but not exceeding the sum produced by applying the
Anticipated Rate of Gross Profit to the amount of reduction in Turnover
Turnover avoided by the additional expenditure incurred The money paid or payable to the Insured for goods sold and for
services rendered in the course of the commercial operation of the
less any sum saved during the Indemnity Period in respect of the
Enterprise.
charges and expenses as may cease or be reduced in consequence of
the interruption or interference.
Uninsured Working Expenses
All expenses which vary in direct proportion to any variation in
Definitions Turnover.

Anticipated Rate of Gross Profit

The rate of Gross Profit which had the interruption or interference not
occurred would have been earned on Turnover during the Indemnity
Period.

Anticipated Turnover
The Turnover which had the interruption or interference not occurred
would have been achieved during the twelve (12) months after the
scheduled date of commencement of commercial operation
(proportionately increased where the Indemnity Period exceeds
twelve (12) months).

Note
Adjustments shall be made to the figures representing the
Anticipated Rate of Gross Profit and Anticipated Turnover as may be
necessary to provide for the trend in the Enterprise and for variations
in or other circumstances affecting the business either before or after
the interruption of interference or which would have affected the
business had the interruption or interference not occurred so that the
adjusted figures shall represent as nearly as may be practicable the
results which but for the interruption of interference would have been
obtained.

21
Construction Project All Risks Policy Wording

Cover Four – Basis of Settlement continued

Option B – Advanced Loss of Gross Option C – Advanced Loss of Gross Rent

Revenue
Financial Loss means

Financial Loss means i in respect of loss of Gross Rent the amount by which the Gross
Rent during the Indemnity Period in consequence of the
i in respect of loss of Gross Revenue the amount by which the
interruption or interference falls short of the Anticipated Gross
Gross Revenue during the Indemnity Period in consequence of
Rent
the interruption or interference falls short of the Anticipated Gross
ii in respect of increase in cost of working the additional
Revenue
expenditure necessarily and reasonably incurred for the sole
ii in respect of increase in cost of working the additional
purpose of avoiding or diminishing the loss of Rent which but for
expenditure necessarily and reasonably incurred for the sole
that expenditure would have taken place during the Indemnity
purpose of avoiding or diminishing the loss of Revenue which but
Period in consequence of the interruption or interference but not
for that expenditure would have taken place during the Indemnity
exceeding the amount of the loss thereby avoided
Period in consequence of the interruption or interference but not
exceeding the amount of the loss thereby avoided less any sum saved during the Indemnity Period in respect of the
charges and expenses as may cease or be reduced in consequence of
less any sum saved during the Indemnity Period in respect of the
the interruption or interference.
charges and expenses as may cease or be reduced in consequence of
the interruption or interference.
Definitions
Definitions
Anticipated Gross Rent
The Gross Rent which had the interruption or interference not
Anticipated Gross Revenue
occurred would have been achieved during the twelve (12) months
The Revenue which had the interruption or interference not occurred
after the scheduled date of commencement of commercial operation
would have been achieved during the twelve (12) months after the
(proportionately increased where the Indemnity Period exceeds
scheduled date of commencement of commercial operation
twelve (12) months).
(proportionately increased where the Indemnity Period exceeds
twelve (12) months).
Gross Rent
The money paid or payable to the Insured by tenants for rent in the
Gross Revenue
course of the commercial operation of the Enterprise.
The money paid or payable to the Insured for services rendered in the
course of the commercial operation of the Enterprise.
Note
Adjustments shall be made to the figures representing the Gross Rent
Note
and Anticipated Gross Rent as may be necessary to provide for the
Adjustments shall be made to the figures representing the Revenue
trend in the Enterprise and for variations in or other circumstances
and Anticipated Gross Revenue as may be necessary to provide for the
affecting the business either before or after the interruption of
trend in the Enterprise and for variations in or other circumstances
interference or which would have affected the business had the
affecting the business either before or after the interruption of
interruption or interference not occurred so that the adjusted figures
interference or which would have affected the business had the
shall represent as nearly as may be practicable the results which but
interruption or interference not occurred so that the adjusted figures
for the interruption of interference would have been obtained.
shall represent as nearly as may be practicable the results which but
for the interruption of interference would have been obtained.

22
Construction Project All Risks Policy Wording

Cover Four – Basis of Settlement continued

Option D - Loss of Bank Interest

Financial Loss means

In consequence of interruption or interference

i the additional interest incurred on capital borrowed to finance the
Contract Works during the Indemnity Period
ii the loss in respect of acquisition costs and associated expenses of
raising (or extending) the loans referred to in i above the amount
payable being the actual amount of such expenditure

and/or

the investment interest lost by the use of the Insureds own funds
to finance the Contract Works during the Indemnity Period
iii in respect of increase in cost of working the additional
expenditure necessarily and reasonably incurred for the sole
purpose of avoiding or diminishing the loss otherwise payable
which but for that expenditure would have taken place during the
Indemnity Period in consequence of the interruption or
interference but not exceeding the amount of the loss thereby
avoided

less any sum saved during the Indemnity Period in respect of the
charges and expenses as may cease or be reduced in consequence of
the interruption or interference.

23
Construction Project All Risks Policy Wording

Cover Four – Extensions

Cover Four is extended to cover Definitions

1 Professional Accountants Fees Specified Event

the reasonable cost payable by the Insured to professional a Damage to property in the Vicinity of the site of the Contract
accountants for producing such particulars or details or any other Works (but excluding Damage to property of any supply
proofs information or evidence as may be required by the Insurers undertaking from which the Business Activity obtains electricity
under the terms of any Condition of this Policy and reporting that gas water telecommunications or sanitation services) which shall
such particulars or details are in accordance with the Insureds prevent or hinder the use of the site of the Contract Works or
books of account or other business books or documents. access or exit thereto whether the site of the Contract Works or
Any particulars or details contained in the Insureds books of the Contract Works themselves shall be Damaged or not
accounts or other business books or documents which may be b action by any Government Authority Local Authority or Police
required by the Insurers under any Condition of this Policy for the Authority following a danger or disturbance in the Vicinity of the
purpose of investigating or verifying any claim made under this site of the Contract Works other than a danger or disturbance
Policy may be produced by professional accountants if at the time resulting from a Terrorist Act or a threat thereof
they are regularly acting as such for the Insured and their report c the order of the Insured (or any other party appointed by the
shall be prima facie evidence of the particulars and details to Insured with responsibility to ensure the safety of those working
which such a report relates. on the site) upon receipt of a bomb threat at or in the Vicinity of
the site of the Contract Works.
Provided that the amount payable under this Extension and the
amount otherwise payable under Cover Four shall not exceed in Vicinity
respect of any one Within one mile of the site of the Contract Works.
a accident or series of accidents arising from one occurrence or
b occurrence or series of occurrences of a Specified Event
insured by Cover Four Extension 2 Denial of Access

the Limit of Liability shown in the Schedule for Cover Four.

2 Denial of Access
the Financial Loss of the Insured resulting from interruption or
interference with Contract Works Programme which causes delay
in the scheduled start of commercial operation or the sale of the
Enterprise during the Indemnity Period in consequence of not
being able to remain on or gain access to the site of the Contract
Works as a direct result of a Specified Event detailed in items a b
or c below.

Provided that the Insurers liability under this Extension after the
application of all other terms and Conditions of this Policy shall
not exceed
i the amount shown in the Schedule in respect of any one
occurrence or series of occurrences of a Specified Event
insured by this Extension
ii the amount shown in the Schedule during the Period of
Insurance.

24
Construction Project All Risks Policy Wording

Cover Four – Exclusions

Cover Four does not cover direct or indirect Financial Loss or cost 6 Other Consequential Losses
a arising from or in respect of any other consequential losses
1 Inevitable Damage not specifically provided for under Cover Four
which would have been incurred irrespective of whether the b incurred which is specified elsewhere in this Policy
Damage or other insured event had occurred. c which is recoverable from the Contractors or sub-contractors
under the terms of the Contract
2 Early Completion d arising out of Damage at suppliers or manufacturers premises.
incurred solely to expedite the completion of the Contract Works
or any part thereof at an earlier date than would have been 7 Time Exclusion
attained had the said Damage or other insured event not incurred during the Time Exclusion period shown in the Schedule.
occurred.
8 Wear and Tear or Gradual Deterioration
3 Redesign Alteration Addition and Improvement
a inevitable wear and tear erosion corrosion or other
incurred in redesigning altering adding to or improving
deterioration caused by or naturally resulting from ordinary
permanent or temporary works or rectification of defects or faults
work use or exposure
or elimination of any deficiencies carried out after the occurrence
b gradually developing flaws or fractures which do not
or any Financial Loss as a result of such redesigning alteration
necessitate immediate stoppage
addition or improvement.
but not Financial Loss in consequence of Damage resulting from a
4 Insufficient Funds or b unless otherwise excluded.
resulting from any delay due to the inability of the Insured to
provide sufficient funds for the repair or replacement of the
permanent or temporary works suffering Damage.

5 Idle Time Cost

resulting from idle time cost in respect of Contractors Plant
Temporary Buildings Hired In Plant or labour.

25
Construction Project All Risks Policy Wording

Cover Four – Conditions

1 Contract Works Programme 3 Occupation of the Contract Works or Parts

The Insured shall at their own expense Thereof
a prior to commencement of the Period of Insurance provide Where the Insurers have given permission for the Insured to
the Insurers with a copy of the Contract Works Programme occupy any portion of the Contract Works for their own purposes
b during the course of the Contract provide the Insurers with a prior to completion of the Contract / Contract Works Programme
further copy of the Contract Works Programme whenever it is any income received in this respect by the Insured shall be taken
amended or revised in any way which has the effect of into account in the calculation of the indemnity provided by
altering the scheduled date(s) of completion of the Contract Cover Four.
Works and
c when requested by the Insurers provide the reasons for the 4 Alternative Trading
amendments or revisions and all relevant details which the If during the Indemnity Period accommodation shall be provided
Insurers may require. or goods are sold or services rendered elsewhere than at the
Enterprise for the benefit of the Enterprise either by the Insured or
2 Claims Reports by others acting on their behalf the money paid or payable for
In the event of an Accident occurring for which it is anticipated such accommodation goods or services shall be taken into
that a loss may be payable under this Policy (or would be but for account in arriving at the Financial Loss during the Indemnity
the application of any deductible) the Contractor and Period.
subcontractors shall be instructed by the Insured to keep a record
of the delay which such an Accident causes in completing the 5 Discontinuance of the Employer
Contract Works and of other causes (insured or uninsured) which If during the Indemnity Period the Employer are wound up or
affect the subsequent course of the completion of the Contract carried on by a liquidator or receiver or permanently discontinued
Works Programme and the steps taken to minimise delay. then if the Contract is continued by another party for whom the
Insurers have agreed to provide indemnity
If such record shows that more than one cause has contributed to
a the liability of the Insurers shall be limited to the amount that
the subsequent failure to achieve the scheduled date of
would have been payable had the Employer been able to
completion of the Contract Works then the insurance provided by
continue the Business Activity
this Policy shall only pay in proportion to the time lost which is due
b the Indemnity Period shall be regarded as ended on the date
to the Accident as opposed to any other cause.
of such winding up or liquidation or receivership or
permanent discontinuance.

26
Construction Project All Risks Policy Wording

Cover Five – Public Liability

Definitions Cover

1 An Act of Terrorism a Indemnity to the Insured

An act including but not limited to the use of force or violence The Insurers will indemnify the Insured against legal liability to pay
and/or threat thereof of any person or group(s) of persons compensation and claimants costs and expenses in respect of
whether acting alone or on behalf of or in connection with any accidental
organisation(s) or government(s) committed for political
i Injury to any person
religious ideological or similar purposes including the intention to
ii Damage to material property
influence any government and / or to put the public or any
iii nuisance trespass obstruction or interference with any right of
section of the public in fear.
way light air water or easement
iv libel slander or defamation of character
2 Notice of Adjudication
Any notice issued to a party to a contract to which the Housing occurring within the Territorial Limits during the Period of
Grants Construction and Regeneration Act 1996 or any Insurance in connection with the Business Activity.
subsequent legislation applies stating an intention to refer a
In addition the Insurers will pay claimants costs and expenses
dispute under the contract to adjudication.
incurred by the Insured or any other cost or expense with the
written consent of the Insurers
3 Pollution or Contamination
i in connection with the defence of any claim
a all Pollution or Contamination of buildings or other structures
ii for representation of the Insured
or of water or land or the atmosphere
1 at any coroners inquest or fatal accident inquiry in respect
and
of death
b all Injury loss or damage directly or indirectly caused by such 2 at proceedings in any court of summary jurisdiction or on
Pollution or Contamination. indictment in any higher court in respect of any alleged
breach of statutory duty resulting in Injury or Damage
All Pollution or Contamination which arises out of one incident
shall be deemed to have occurred at the time such incident takes which may be the subject of indemnity under Cover Five.
place.

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Construction Project All Risks Policy Wording

Cover Five – Limit of Liability

a The liability of the Insurers for all compensation payable in respect

of
i any one occurrence or all occurrences of a series consequent
on or attributable to one source or original cause
ii all Pollution or Contamination which is deemed to have
occurred during any one Period of Insurance

shall not exceed the Limit of Liability shown in the Schedule.

b In respect of all claims against the Insured made within the legal
jurisdiction of the United States of America or Canada or any
dependency or trust territory the Limit of Liability shall be
inclusive of the amount of all
i claimants costs and expenses
ii costs and expenses incurred by the Insurer or with the written
consent of the Insurers in connection with the defence of
such claims.
c In respect of An Act of Terrorism the Limit of Liability under Cover
Five shall not exceed the Limit of Liability shown in the Schedule
or £5,000,000 whichever is the lesser.

28
Construction Project All Risks Policy Wording

Cover Five – Extensions

(subject to the terms limits conditions and exclusions of this Section and the Policy)

a Indemnity to Other Parties d Motor Contingent Liability

If the Insured so requests the Insurers will indemnify the following The Insurers will indemnify the Insured in the terms of Cover Five
parties against liability arising out of the use in connection with the
Business Activity of any vehicle not owned provided or being
i any officer or committee member or other member of the
driven by the Insured but Cover Five does not cover liability
Insureds canteen social sports or welfare organisations or
ambulance first aid fire medical or security services against i in respect of Damage to such vehicle or its contents
liability incurred in such capacity ii arising out of any such use in any country outside the
ii any partner director or Employee of the Insured against territories specified in paragraph a of the Definition of
liability incurred in such capacity and in respect of which the Territorial Limits
Insured would have been entitled to indemnity under Cover iii incurred by any party other than the Insured
Five if the claim had been made against the Insured iv incurred by any party identified in paragraph a Indemnity to
Other Parties other than an Employee.
as though each party were individually named as the Insured in
Cover Five. For the purpose of this Extension d Exclusion 1 (Injury to
Employees) does not apply.
iii any principal with whom the Insured have agreed to execute
work under Contract or agreement against liability arising out
of the performance of such work by the Insured and in respect e Health and Safety at Work - Legal Defence Costs
of which the Insured are legally liable and would have been The Insurers will indemnify the Insured and if the Insured so
entitled to indemnity under Cover Five if the claim had been requests any partner director or Employee of the Insured in the
made against the Insured. terms of Cover Five in respect of
i costs and expenses incurred with the Insurers written consent
Provided that
ii costs and expenses of the prosecution awarded against any
1 each such party shall observe fulfill and be subject to the such party
terms and conditions of Cover Five in so far as they can apply
2 the Insurers liability to the Insured and all parties indemnified in connection with criminal proceedings or an appeal against
shall not exceed in total the Limit of Liability specified in the conviction arising from such proceedings brought in respect of
Schedule for Cover Five any offence under the Health and Safety at Work etc. Act 1974 or
3 the Insurers shall retain sole conduct and control of any claim the Health and Safety at Work (Northern Ireland) Order 1978 or
4 such party shall not be entitled to indemnity under any other any regulations made thereunder committed or alleged to have
policy. been committed during the Period of Insurance in connection
with the Business Activity.
b Joint Insured Cross Liabilities Provided that
If more than one party is named as the Insured Cover Five shall
apply as though each were insured separately. 1 the proceedings relate to the health safety or welfare of any
person other than an Employee
Provided that the Insurers liability to all parties indemnified shall 2 the Insurers shall have the conduct and control of all the said
not exceed in total the Limit of Liability shown in the Schedule for proceedings and appeals.
Cover Five.
The Insurers will not pay for
c Overseas Personal Liability A fines or penalties of any kind
The Business Activity is extended to include personal activities B proceedings or appeals in respect of any deliberate act or
(not connected with any gainful occupation or profession nor omission
with the ownership or tenure of any land or building) of any C costs or expenses insured by any other insurance.
partner director or Employee of the Insured or family member of
such partner director or Employee normally resident within the
territories specified in paragraph a of the Definition of Territorial
Limits in the course of any journey or temporary visit to any other
country made in connection with the Business Activity.

29
Construction Project All Risks Policy Wording

Cover Five – Extensions continued

f Court Attendance Compensation i Housing Grants Act

If during the Period of Insurance any partner director or Employee The Insurers will indemnify the Insured against an award (or any
of the Insured is required to attend court as a witness at the part thereof) made in respect of a construction dispute and
request of the Insurers in connection with a claim which is the resulting from an adjudication procedure which complies with
subject of indemnity under Cover Five the Insurers will pay the provisions of the Housing Grants Construction and
compensation to the Insured on the following scale for each day Regeneration Act 1996 or any succeeding legislation.
that attendance is required
Provided that
i any director or partner £500
ii any Employee £250 i indemnity shall only apply to the extent that such an award
relates to Damage or liability for which an indemnity is
provided by Cover Five
g Contractual Liability
ii any payment made by the Insurers in respect of such an
In respect of liability assumed by the Insured by a contract or
award shall be made without prejudice to any other rights of
agreement entered into by the Insured and which would not have
the Insurer under Cover Five
attached in the absence of such contract or agreement the
iii it is a condition precedent to any liability of the Insurers to
indemnity provided by Cover Five shall only apply if the sole
make any payment under Cover Five that where there is a
conduct and control of any claim is vested in the Insurers.
construction contract dispute relating to Damage or liability
Provided that the Insurers shall not pay for liquidated damages or for which an indemnity is or may be provided by Cover Five
fines or damages imposed by or payable under any penalty 1 any Notice of Adjudication received by the Insured shall be
clause. forwarded to the Insurers immediately upon receipt
2 the Insured shall provide notice to the Insurers of any
h Consumer Protection and Food Safety Acts - intention by them to issue a Notice of Adjudication
Legal Defence Costs 3 the Insured shall not accept any award made by an
The Insurers will indemnify the Insured and if the Insured so adjudicator to such a dispute as being final without the
request any partner director or Employee of the Insured in the prior agreement of the Insurers.
terms of Cover Five in respect of legal costs and expenses
incurred with the written consent of the Insurers in connection
with the defence of any criminal proceedings or an appeal against
conviction arising from such proceedings brought in respect of
any offence under
i part 2 of the Consumer Protection Act 1987 or
ii section(s) 7, 8, 14 and/or 15 of the Food Safety Act 1990

committed or alleged to have been committed during the Period

of Insurance in connection with the Business Activity.

Provided that the Insurers shall have the conduct and control of all
said proceedings and appeals.

The Insurers will not pay for

1 fines or penalties of any kind
2 proceedings or appeals in respect of any deliberate act or
omission
3 costs or expenses insured by any other policy.

30
Construction Project All Risks Policy Wording

Cover Five – Extensions continued

j Corporate Manslaughter and Corporate k Defective Premises Act 1972

Homicide Act 2007 The lnsurers will indemnify the lnsured in the terms of Cover Five
Cover Five extends to indemnify the Insured in respect of against liability incurred by the lnsured under Section 3 of the
Defective Premises Act 1972 or Section 5 of the Defective
i legal costs and expenses incurred with the prior written
Premises (Northern Ireland) Order 1975 or the Defective Premises
consent of the Insurer and
(Landlords Liability) Act (Northern Ireland) 2001 in connection
ii costs of the prosecution awarded against the Insured
with premises or land disposed of by the lnsured.
in connection with the defence of any criminal proceedings
Provided that
(including any appeal against conviction arising from such
proceedings) brought under The Corporate Manslaughter and i this Extension does not cover
Corporate Homicide Act 2007 or any equivalent legislation in the a the cost of rectifying any damage or defect in the
Channel Islands or the Isle of Man in respect of any fatal injury premises or land disposed of
occurring during the Period of Insurance in the course of the b liability for which the lnsured is entitled to indemnity
Business Activity and which may be the subject of indemnity under any other insurance
under Cover Five. c the presence of asbestos asbestos fibres or any derivatives
of asbestos including any product containing any asbestos
Provided that fibres or derivatives
1 the maximum amount payable under this Extension shall not ii the Injury or Damage giving rise to such legal liability occurs
exceed £5,000,000 during any one Period of Insurance or the during the Period of Insurance in connection with the
Limit of Liability under Cover Five as shown in the Schedule Business Activity.
whichever is the lesser
2 all amounts payable under this Extension will form part of and
are not in addition to the Limit of Liability under Cover Five as
shown in the Schedule
3 the Insurers agree details of the specific solicitor or counsel
who are to act on behalf of the Insured prior to their
appointment.
In respect of this Extension the Insurers will not pay for
A any fines or penalties imposed on the Insured or the cost of
implementing any remedial order or publicity order
B legal costs and expenses in connection with an appeal unless
solicitor or counsel advise that there are strong prospects of
succeeding in the appeal or recovering costs awarded against
the Insured at all times throughout the appeals process. Any
change to such prospect of success during the appeals
process may result in cover being removed
C costs and expenses provided by another source or any other
insurance or where but for the existence of this Extension
would have been provided by such source or insurance
D costs and expenses in connection with the defence of any
criminal proceedings brought in any country other than Great
Britain Northern Ireland the Channel Islands and the Isle of Man
E costs and expenses in connection with the defence of any
criminal proceedings resulting from any deliberate or
intentional criminal act or omission by the Insured or any
partner or director of the Insured or any Employee.

31
Construction Project All Risks Policy Wording

Cover Five – Extensions continued

l Data Protection Act

The lnsurers will indemnify the lnsured in relation to a claim made
by any person including an Employee for damage or distress
occurring as a result of an offence under Section 13 of the Data
Protection Act 1998 and any subsequent amending legislation
within the United Kingdom and arising in connection with the
Business Activity provided that
i the lnsured is a registered user in accordance with the terms
of the Data Protection Act 1998 and any subsequent
amending legislation
ii any claim is first made or prosecution first brought against the
Insured during the Period of Insurance
iii the liability of the Insurers under this Extension will not exceed
£1,000,000 in any one Period of Insurance.

The lnsurers will not pay for

1 any damage or distress caused by any deliberate act or
omission by the Insured the result of which could reasonably
have been expected by the Insured having regard to the
nature and circumstances of such act or omission
2 the payment of penalties or fines
3 the costs and expenses of replacing reinstating rectifying or
erasing blocking or destroying any Data or Personal Data
4 any damage or distress caused by any act of fraud or
dishonesty
5 liability arising from the recording processing or provision of
Data or Personal Data for reward or to determine the financial
status of any person
6 claims which arise out of circumstances notified to previous
insurers or known to the Insured at the inception of this cover.

Data and Personal Data shall have the meaning defined in the
Data Protection Act 1998 and any subsequent amending
legislation.

32
Construction Project All Risks Policy Wording

Cover Five – Extensions continued

m Financial Loss Exclusions

Additional definitions in respect of this Extension
This Extension does not cover
Financial Loss 1 Injury and Damage
A pecuniary loss or expense incurred by any person other than the liability in respect of
Insured or a partner director or Employee of the Insured.
a Injury to any person
Intellectual Property Rights b loss or damage to any material property
Any patent trade mark copyright registered design technical or c nuisance trespass obstruction or interference with any right of
commercial information or other intellectual property. way air light or water
d wrongful arrest detention imprisonment or eviction of any
Internet Liability
person or invasion of right of privacy
Any liability in respect of corruption theft or destruction of facts
e libel slander or defamation of character.
concepts and information converted to a form useable for
communications interpretation or processing by electronic and 2 Intellectual Property Rights
electromechanical data processing or electronically controlled liability in respect of any infringement of Intellectual Property
equipment and such facts concepts and information shall include Rights.
programmes software and other coded instructions for the
3 Contractual Liability
processing and manipulation of data or the direction and
liability assumed by the Insured either directly or indirectly by a
manipulation of such equipment including but not limited to such
contract or agreement entered into by the Insured.
corruption theft or destruction caused by
4 Property in the Charge or Control of the Insured
i any breach of the security of any computer system used by
liability in respect of Financial Loss incurred as a result of loss or
the Insured due to unauthorised access to use of tampering
damage to material property belonging to or in the charge or
with or the malicious introduction of code into such systems
control of the Insured or failure to return such property.
ii transmission of any computer virus to any third party.
5 Delays or Damage to Goods Supplied
Cover
liability in respect of
The Insurers will indemnify the Insured against legal liability to pay
compensation and claimants’ costs and expenses in respect of a the costs of or arising from the need for making good removal
accidental Financial Loss in connection with the Business Activity repair rectification replacement or recall of any Products
sustained by the claimant within the Territorial Limits and for b diminution in value of land or any buildings or premises
which any claim is thereon
c diminution in value of Products or work executed by or on
a first made in writing against the Insured during the Period of
behalf of the Insured
Insurance and
d delay non-completion strikes labour disputes financial default
b notified to the Insurer during the same Period of Insurance or
insolvency or non delivery of Products.
within thirty (30) days of the expiry of such Period of
Insurance. 6 Known Circumstances
liability arising out of or in connection with any event or
In addition the Insurers will pay costs and expenses incurred by circumstances known to the Insured at inception of this Section
the Insurers or with the written consent of the Insurers which may give rise to a claim for Financial Loss.
i in connection with the defence of any claim 7 Asbestos
ii at proceedings in any court of summary jurisdiction or on Injury Damage liability loss cost or expense directly or indirectly
indictment in any higher court in respect of alleged breach of caused by contributed to by or arising out of any asbestos
statutory duty resulting in Financial Loss which may be the asbestos fibres or any derivatives of asbestos including any
subject of indemnity under this Extension. product containing any asbestos fibres or derivatives.
Limit of Liability
The Insurer’s liability under this Extension in respect of all
compensation costs and expenses payable for all claims first
made against the Insured during any one Period of Insurance shall
not exceed £50,000.
33
Construction Project All Risks Policy Wording

Cover Five – Extensions continued

8 Employment Practices Liability 15 Professional Advice or Negligence

any claim Liability
a made by any Employee arising out of employment in the a consequent upon any advice design specification inspection
Business Activity certification or testing provided or performed by or on behalf
or of the Insured
b for any employment related practices policies acts or or
omissions b arising out of any breach of professional duty.
or
16 Statutory Authorities
c for a refusal to employ any person or the termination of any
liability towards any statutory authority arising out of the
person’s employment.
enforcement of statutory requirements or the performance of
9 Fraud and Dishonesty statutory duties.
liability arising out of any act of fraud or dishonesty by the Insured
17 Previous Occurrence
or any partner or director of the Insured or inducement of breach
liability arising out of any occurrence happening before the
of contract.
Effective Date of the Period of Insurance of Cover Five as shown
10 Act of Terrorism in the Schedule.
liability in respect of Injury loss or damage directly or indirectly
18 Breach of Duty
caused by or arising from in consequence or in any way involving
liability arising from actual or alleged breach of duty breach of
an Act of Terrorism.
trust breach of contract neglect error mis-statement misleading
11 Pollution or Contamination statement omission breach of warranty of authority or other act
liability directly or indirectly caused by or arising from in done or wrongfully attempted by any director or officer of the
consequence or in any way involving Pollution or Contamination Insured.
or expenses fines penalties or costs incurred or sustained by the
19 Excess
Insured or imposed on the Insured at the order of any
in respect of each and every claim; the first £2,500 of
government agency court or other authority in connection with
compensation and costs and expenses payable.
any Pollution or Contamination.
12 Internet Liability
any Internet Liability.
13 Offshore Installations
any liability in respect of Offshore Installations.
14 Fines Penalties Liquidated and Punitive Damages
liability in respect of
a fines penalties or liquidated damages
b punitive exemplary or aggravated damages and/or any
additional damages resulting from the multiplication of
compensatory damages
c compensation ordered or awarded by any Court of Criminal
Jurisdiction.

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 Construction Project All Risks Policy Wording

Cover Five – Extensions continued

n Legionellosis Liability o Pollution Clean Up Costs

Cover Five - Exclusion 4 Pollution and Contamination paragraph Additional definitions in respect of this Extension
b shall not apply to any discharge release or escape of Legionella
or other air-borne pathogens from water tanks water systems air Remediation
conditioning plants cooling towers and the like. shall mean works or operations to treat remove or dispose of
Pollution and Contamination. For the avoidance of doubt it
Provided that
excludes
i the Insurers will only indemnify the Insured
i works or operations to reinstate reintroduce or restore flora or
1 in respect of claims arising from Pollution or fauna
Contamination which arise out of or as a consequence of ii works or operations to restore natural habitats or species
any discharge release or escape of Legionella or other air- protected under Environmental Legislation.
borne pathogens from water tanks water systems air
conditioning plants cooling towers and the like first made Environmental Legislation
in writing to the Insured during the Period of Insurance or shall mean any legislation for the protection of the environment
2 if the first notification of a circumstance which has caused or control of Pollution and Contamination.
or is alleged to have caused Injury or damage and can be
reasonably expected to give rise to a claim arising from Pollution and Contamination
Pollution or Contamination which arises out of or as a shall mean all pollution or contamination of water or land (but
consequence of any discharge release or escape of excluding any pollution or contamination of buildings or other
Legionella or other air-borne pathogens from water tanks structures).
water systems air conditioning plants cooling towers and
the like is notified to the Insurers during the Period of Cover
Insurance or within thirty days (30) after expiry of the In respect of Pollution or Contamination occurring in Great Britain
same Period of Insurance Northern Ireland the Channel Islands or the Isle of Man caused by
ii the liability of the Insurers under this Extension for all a sudden identifiable unintended and unexpected incident which
compensation (including interest thereon) and claimants takes place in its entirety at a specific time and place during the
costs’ and expenses payable shall not exceed the Limit of Period of Insurance in connection with the Business Activity the
Liability shown in the Schedule or £1,000,000 (whichever is Insurers will also indemnify the Insured against
the lesser) and for all claims arising from Pollution or i the cost of any Remediation legally required or ordered by any
Contamination shall not exceed the Limit of Liability shown in statutory authority or regulator (acting in accordance with the
the Schedule terms of any Environmental Legislation) to be conducted by
iii this Extension shall not apply to any claim arising from the Insured and
Pollution or Contamination which arises out of or as a ii liability for the cost of any Remediation conducted by any
consequence of any discharge release or escape of Legionella statutory authority or regulator and legally sought from the
or other air-borne pathogens from water tanks water systems Insured by that statutory authority or regulator in accordance
air conditioning plants cooling towers and the like if before with the terms of any Environmental Legislation.
the Effective Date of the Period of Insurance of this Section as
shown in the Schedule the Insured had become aware of
circumstances which have given or may give rise to such
Pollution or Contamination.

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Construction Project All Risks Policy Wording

Cover Five – Extensions continued

All Pollution and Contamination which arises out of one incident 5 this Extension does not cover any costs, or any liability for
shall be deemed to have occurred at the time such incident takes costs, to the extent they relate to
place.
a any measures to prevent the spread of Pollution or
Provided that Contamination or the removal of an immediate threat of
Pollution or Contamination
1 under this Extension the Insurers shall indemnify the Insured b the removal or disposal of any waste deposited by or on
only to the extent that the Remediation to which the behalf of the Insured
indemnified cost relates is the minimum necessarily c any amounts payable by way of compensation to third
conducted under the provisions of Environmental Legislation. parties affected by such Pollution and Contamination
2 this Extension does not cover any costs, or any liability for d any amount payable by way of fine or penalty
costs, of Remediation arising out of e any costs and expenses incurred by the Insured or
prosecution costs and expenses awarded against the
a Pollution and Contamination occurring outside Great
Insured in connection with any criminal proceedings
Britain Northern Ireland the Channel Islands or the Isle of
arising out of the Pollution or Contamination
Man
f any works or operations that improve the state or
b Pollution and Contamination consisting of any radioactive
condition of water or land in comparison with its state or
substances or asbestos
condition immediately prior to the incident that caused
c Pollution and Contamination caused by Products
the Pollution and Contamination.
d Pollution and Contamination caused by or arising out of
6 this Extension does not cover the first £2,500 of the cost of any
the ownership operation or use of any motor vehicle
Remediation arising out of any one incident.
(whilst on any road) marine vessel or aircraft.
3 this Extension does not cover any costs, or any liability for
costs, of Remediation carried out on or in order to protect any
property belonging to or in the charge or control of the
Insured other than premises not belonging leased rented or
hired to the Insured but temporarily in the Insured’s charge
for the purpose of carrying out work.
4 the total amount payable under this Extension during any one
Period of Insurance shall not exceed £250,000 and the total
amount payable
a under this Extension and
b otherwise under this Section for all compensation in
respect of Pollution or Contamination (as defined therein)
which is deemed to have occurred during any one Period
of Insurance
shall not exceed in the aggregate during any one Period of
Insurance the Limit of Liability in the Schedule.

36
Construction Project All Risks Policy Wording

Cover Five – Extensions continued

p Public Relations Expenses

In the event of any occurrence insured under this Section which
results in death or serious injury (which is life threatening or
involves emergency hospitalisation) cover extends to include
costs and expenses necessarily and reasonably incurred by the
Insured with the prior written consent of the Insurers of
employing public relations personnel to deal with press and
public announcements and other activities.

Provided that
i the Insurers agree details of the specific public relations
personnel who are to act on behalf of the Insured prior to their
appointment
ii the estimated value of the claim(s) in respect of one
occurrence arising out of death or serious injury held by the
Insurers is £1,000,000 or above
iii the public relations activities are for the sole purpose of
assisting the Insured to reduce the potential for economic
harm to the Insured by maintaining and restoring public
confidence in the Insured and/or the Business Activity
iv the Insurers shall not be liable under this Extension for more
than £10,000 any one occurrence and £25,000 in total in any
one Period of Insurance.

q Obstructing Mechanically Propelled Vehicles

If a mechanically propelled vehicle which is not the property or
responsibility of the Insured causes an obstruction within Great
Britain Northern Ireland the Channel Islands or the Isle of Man to
the extent of interfering with the carrying out of the Business
Activity then notwithstanding Cover Five Exclusion 5
Mechanically Propelled Vehicles the Insurer will indemnify the
Insured in the terms of this Section in respect of the legal liability
of the Insured for Injury or Damage to material property arising
from the movement of such vehicle by the Insured or by any
Employee.

Provided that
i such movement shall be limited to the minimum necessary to
clear the obstruction
ii the indemnity will not apply to loss of or damage to such
vehicle or its contents
iii this Extension shall not apply to circumstances for which a
certificate of insurance or security is required in accordance
with road traffic legislation
iv the vehicle is driven using the obstructing vehicle owners own
ignition key.

37
Construction Project All Risks Policy Wording

Cover Five – Exclusions

Cover Five does not cover 6 Vessels or Craft

liability arising out of the ownership possession or use by or on
1 Injury to Employees behalf of the Insured of any vessel or craft or device designed to
liability in respect of Injury to any Employee arising out of and in float on or in or travel through water air or space (other than
the course of the employment or engagement of such person by hand-propelled watercraft).
the Insured.
7 Property in the Charge or Control of the Insured
2 Work on Offshore Installations liability in respect of Damage to any property belonging to or in
liability in respect of Injury or Damage arising in connection with the charge or control of the Insured other than
work on or travel to or from Offshore Installations.
a personal effects or vehicles of any partner director or
Employee of or visitor to the Contract Works site
3 Fines Penalties Liquidated Punitive Exemplary
b premises (and their contents) not belonging leased rented or
or Aggravated Damages
hired to the Insured but temporarily in the charge of the
liability in respect of
Insured for the purposes of carrying out work
a fines penalties or liquidated damages c Premises (including their fixtures and fittings) leased rented
b punitive exemplary or aggravated damages or any damages or hired to the Insured but Cover Five does not cover liability
resulting from multiplication of compensatory damages. attaching to the Insured solely under the terms of any tenancy
or other agreement.
4 Pollution or Contamination
liability in respect of 8 Damage to Goods Supplied
a Pollution or Contamination occurring in the United States of liability in respect of
America or Canada or any dependency or trust territory a Damage to any goods or other property sold supplied
b Pollution or Contamination occurring elsewhere unless delivered installed or erected by or on behalf of the Insured
caused by a sudden identifiable unintended and unexpected b all costs of or arising from the need for reinstatement making
incident which takes place in its entirety at a specific time and good removal repair rectification replacement or recall of
place during the Period of Insurance.
i any such goods or property
ii any defective work executed by or on behalf of the Insured
5 Mechanically Propelled Vehicles
liability arising out of the ownership possession or use by or on except that 8a and 8bi above shall not apply to liability in respect
behalf of the Insured of any mechanically propelled vehicle (or of Damage to the said goods or property if such Damage is caused
trailer attached thereto) which is required by any road traffic by or arises from any alteration repair or servicing work executed
legislation to be the subject of compulsory insurance or other by the Insured under a separate contract.
security but this Exclusion shall not apply
a while such vehicle is being used as a tool of trade (other than 9 Advice and Design
in respect of liability which is compulsorily insurable under liability for Injury or Damage arising out of or in connection with
road traffic legislation) advice design formula specification inspection certification or
b in respect of the loading or unloading of such vehicle or the testing provided or performed for a fee by or on behalf of the
delivery or collection of goods to or from such vehicle Insured.

except where more specifically insured by any other policy.

38
 Construction Project All Risks Policy Wording

Cover Five – Exclusions continued

Cover Five does not cover

10 Contract Works and JCT Clause 6.5.1

liability in respect of Damage to any property
a comprising or to be incorporated in the Contract Works
b against which the Insured are required to effect insurance
under the terms of Clause 6.5.1 of the JCT Conditions of
Contract or of any other contract condition requiring
insurance of a like kind.

11 Computer Date Recognition

liability arising directly or indirectly from the failure of any
computer or other equipment or system for processing storing or
retrieving data whether the property of the Insured or not to
achieve any or all of the purposes and consequential effects
intended by the use of any number to denote a date including the
failure
a correctly to recognise any date as its true calendar date
b to recognise capture save retain restore and/or correctly
manipulate interpret calculate or process any data or
information or command or instruction as a result of treating
any date otherwise than as its true calendar date
c to recognise capture save retain restore and/or correctly to
manipulate interpret calculate or process any data or
information as a result of the operation of any command
which has been programmed into any computer software or
firmware being a command which causes the loss of data or
the inability to recognise capture save retain restore or
correctly to manipulate interpret calculate or process any data
on or after any date.

12 Asbestos
Injury Damage liability loss cost or expense directly or indirectly
caused by contributed to by or arising out of any asbestos
asbestos fibres or any derivatives of asbestos including any
product containing any asbestos fibres or derivatives.

13 Excess
the amount(s) shown in the Schedule as the Excess for Cover
Five.

14 Liability Under Hire Contracts

liability for Damage more specifically insured under Cover Three
of this Policy.

39
Construction Project All Risks Policy Wording

Cover Five – Conditions

1 Discharge of Liability 2 Multiple Insureds

The Insurers may pay to the Insured in the event of any one claim If there is more than one insured party each operating as a
or series of claims arising out of one occurrence the specified separate and distinct entity then this Policy shall apply in the same
Limit of Liability in respect thereof (after deducting therefrom any manner and to the same extent as if individual policies had been
sums already paid) or any lesser amount for which the claim(s) issued to each party.
can be settled and thereafter be under no further liability in
respect of such claim or series of claims arising out of one Provided that
occurrence except for the amount of any costs and expenses a the total liability of the Insurers to all of the insured parties
incurred prior to the date of the payment. collectively shall not exceed the Limit of Liability
b any payment or payments by the Insurers to any one or more
insured party shall reduce to the extent of that payment the
Insurers liability to all parties arising from any one event giving
rise to a claim under this Policy
c the insured parties shall at all times preserve any available
contractual rights agreements and remedies in the event of
Damage
d the Insurers shall be entitled to avoid liability to or claim
damages from any of the insured parties in circumstances of
fraud material misrepresentation material non-disclosure or
breach of any Condition in this Policy each referred to in this
clause as a vitiating act
e the Contract is performed in Great Britain Northern Ireland
the Isle of Man or the Channel Islands.

It is however agreed that

i a vitiating act committed by one insured party shall not
prejudice the right to indemnity of any other insured party
who has an insurable interest and who has not committed a
vitiating act
ii the Insurers agree to waive all rights of subrogation which
they may have or acquire against any insured party except
where the rights of subrogation arise from a vitiating act in
which circumstances the Insurers may enforce such rights
notwithstanding the continuing or former status of the
vitiating party as an Insured
iii unless named in the Schedule as an Insured Party any lenders
to the project shall not be entitled to any indemnity under this
Policy for Damage in respect of which the Insurers are by
reason of a vitiating act no longer liable to indemnify any one
or more other insured party.

40
 Construction Project All Risks Policy Wording

Cover Six – Contractors JCT 6.5.1

Definitions Cover

1 Pollution or Contamination The Insurers will indemnify the Employer in respect of any expense
liability loss claim or proceedings which the Employer may incur or
a all Pollution or Contamination of buildings or other structures
sustain by reason of Damage to any material property occurring
or of water or land or the atmosphere
during the Period of Insurance and caused by the collapse subsidence
and heave vibration weakening or removal of support or lowering of
ground water arising out of or in the course of or by reason of the
b all loss or damage directly or indirectly caused by such
carrying out of Works.
Pollution or Contamination.

All Pollution or Contamination which arises out of one incident

shall be deemed to have occurred at the time such incident takes
place.

2 Works
The permanent works undertaken by or on behalf of the Insured
in performance of the specific contract for the Employer.

41
Construction Project All Risks Policy Wording

Cover Six – Limit of Liability

The Insurers liability for all sums payable in respect of all expenses
liabilities losses claims or proceedings arising from
a any one occurrence or all occurrences of a series consequent on
or attributable to one source or original cause
b all Pollution or Contamination which is deemed to have occurred
during the Period of Insurance

shall not exceed the Limit of Liability shown in the Schedule.

In addition the Insurers will pay costs and expenses incurred by the
Insurers or with their written consent in connection with the defence
investigation or settlement of any claim which may be the subject of
indemnity under this Section.

42
Construction Project All Risks Policy Wording

Cover Six – Exclusions

Cover Six does not cover 4 Pollution or Contamination

any expense liability loss claim or proceedings in respect of or
1 Damage to the Works etc. arising from Pollution or Contamination unless caused by a
any expense liability loss claim or proceedings arising from sudden identifiable unintended and unexpected incident which
Damage to any work executed in connection with the Works or to takes place in its entirety at a specific time and place during the
any materials plant tools equipment temporary works temporary Period of Insurance.
buildings or any other property brought on to the site of the
Works for the purpose of the execution of the Works. 5 Sonic Bangs
Damage directly occasioned by pressure waves caused by aircraft
2 Clause 6.5.1 Exceptions and other aerial devices travelling at sonic or supersonic speeds.
any expense liability loss claim or proceedings arising from
Damage to property 6 Computer Date Recognition
a due to any negligence breach of statutory duty omission or liability arising directly or indirectly from the failure of any
default of the Contractor his servants or agents or of any computer or other equipment or system for processing storing or
person employed or engaged upon or in connection with the retrieving data whether the property of the Insured or not to
Works or any part thereof his servants or agents or of any achieve any or all of the purposes and consequential effects
other person who may properly be on the site upon or in intended by the use of any number to denote a date including the
connection with the Works or any part thereof his servants or failure
agents a correctly to recognise any date as its true calendar date
b attributable to errors or omissions in the designing of the b to recognise capture save retain restore and/or correctly
Works manipulate interpret calculate or process any data or
c which can reasonably be foreseen to be inevitable having information or command or instruction as a result of treating
regard to the nature of the work to be executed or the manner any date otherwise than as its true calendar date
of its execution c to recognise capture save retain restore and/or correctly to
d which it is the responsibility of the Employer to insure under manipulate interpret calculate or process any data or
Schedule 1 Option C.1. (if applicable) of the JCT Conditions of information as a result of the operation of any command
Contract. which has been programmed into any computer software or
firmware being a command which causes the loss of data or
3 Fines Penalties Liquidated and Punitive etc the inability to recognise capture save retain restore or
Damages correctly to manipulate interpret calculate or process any data
any liability in respect of on or after any date.

a fines penalties or liquidated damages or

b aggravated punitive or exemplary damages or any damages
resulting from the multiplication of compensatory damages.

43
Construction Project All Risks Policy Wording

Cover Six – Conditions

1 Major Variations
Any major variation or change in plan in carrying out the Business
Activity must
a be agreed with the structural or consulting engineer
b be notified to the Insurers and agreed before commencement
thereof.

2 Claims Procedure
Upon the happening of any Damage to property belonging to the
Employer or for which the Employer is responsible
a the Insured shall if required by the Insurers produce or give
access to such property and the Insurers shall be entitled to
take possession of such property and to deal with the salvage
in a reasonable manner but the Insured shall not be entitled to
abandon any property to the Insurers whether taken
possession of by the Insurers or not
b the Insurers may by payment or at its option by repair or
reinstatement or replacement indemnify the Insured for such
Damage.

44
Construction Project All Risks Policy Wording

Cover One Cover Two Cover Three and

Cover Four – Exclusions
Cover One Cover Two Cover Three and Cover Four do not cover 7 Vessels Craft Vehicles Devices Rigs or Platforms
loss damage cost(s) expenses Financial Loss or legal liability Damage to any
consisting of or in consequence of
a vessel craft vehicle or device designed to float on in or travel
under or through water air or space
1 Sea or Air Transit
b marine rig or marine platform
Damage occurring during transit by sea or air.
c equipment mounted on and fixed to such vessel craft vehicle
device rig or platform.
2 Scratching
the scratching scouring or spoiling of glass painted polished
smooth or similar finished surfaces but not Damage resulting
8 Pollution and Contamination
any cost directly or indirectly caused by or contributed to by or
from such occurrence unless otherwise excluded.
arising from pollution or contamination.

3 Inventory Losses or Unidentifiable Occurrence This Exclusion shall not apply to cost arising from pollution or
loss of Insured Property contamination of Insured Property caused directly by an
a by its disappearance or by shortage if the disappearance or occurrence which is insured by Cover One Cover Two Cover
shortage is only revealed when an inventory is made Three or Cover Four of this Policy.
b due to it being stolen or otherwise missing unless the loss is
identifiable by the Insured with a specific occurrence which 9 E Risks
has been the subject of notification under the terms of the Damage to
Claims Conditions and which has been reported to the Police. a any computer or other equipment or component or system or
item which processes stores transmits or retrieves data or
4 Multiple Lifting Operations b any part of a computer or other equipment or component or
Damage to Insured Property arising out of any lifting or lowering system or item which processes stores transmits or retrieves
operation in which a load is shared between two or more data
machines unless the operations are carried out in accordance
with British Standard Code of Practice For The Safe Use of Cranes whether tangible or intangible (including but without limitation
– BS7121. any data information or programs or software) and whether part
of the Insured Property or not caused directly or indirectly by
5 Money Legal or Promissory Documents i Virus or Similar Mechanism
Damage to Deeds Bonds Bills of Exchange Promissory Notes Cash program code programming instruction or any set of
Bank Notes Treasury Notes Cheques Postal Orders Stamps or instructions intentionally constructed with the ability to
Securities. damage interfere with or otherwise adversely affect computer
programs data files or operations whether involving self
6 Motor Vehicles replication or not. This includes but is not limited to viruses
Damage to any mechanically propelled vehicle or an attached trojan horses worms and logic bombs
trailer.
ii Hacking
This Exclusion does not apply to any vehicle that is unauthorised access to any computer or other equipment or
component or system or item whether part of the Insured
a not licensed for road use and used in circumstances which do
Property or not which processes stores transmits or retrieves
not require insurance under any road traffic legislation or
data
b designed or adapted primarily for use as a tool of trade.
but this Exclusion shall not apply to subsequent Damage arising
from or caused by fire lightning explosion aircraft or other aerial
devices or articles dropped therefrom riot civil commotion strikers
locked out workers persons taking part in labour disturbances
earthquake storm flood escape of water from any tank apparatus
or pipe or impact by any road vehicle or animal which would but
for the application of this Exclusion be insured by this Policy.

45
Construction Project All Risks Policy Wording

Cover One Cover Two Cover Three and

Cover Four – Exclusions continued
Cover One Cover Two Cover Three and Cover Four do not cover 11 Computer Date Recognition
loss damage cost(s) expenses Financial Loss or legal liability Damage directly or indirectly caused by or consisting of or arising
consisting of or in consequence of directly or indirectly from the failure of any computer or other
equipment or system for processing storing or retrieving data
10 Terrorism whether the property of the Insured or not
Damage directly or indirectly caused by resulting from or in
a correctly to recognise any date as its true calendar date
connection with
b to capture save or retain and/or correctly to manipulate
a in respect of England Wales and Scotland but not the interpret or process any data or information or command or
territorial seas adjacent thereto as defined by the Territorial instruction as a result of treating any date otherwise than its
Sea Act 1987 true calendar date
i any act of Terrorism regardless of any other cause or event c to capture save retain or correctly to process any data as a
contributing concurrently or in any other sequence to the result of the operation of any command which has been
loss programmed into any computer software being a command
ii any action taken in controlling preventing suppressing or which causes the loss of data or the inability to capture save
in any way relating to any act of Terrorism retain or correctly to process such data on or after any date

In respect of a above an act of Terrorism means but this Exclusion shall not apply to subsequent Damage arising
Acts of persons acting on behalf of or in connection with any from or caused by fire lightning explosion aircraft or other aerial
organisation which carries out activities directed towards the devices or articles dropped therefrom theft riot civil commotion
overthrowing or influencing by force or violence of Her strikers locked out workers persons taking part in labour
Majesty’s government in the United Kingdom or any other disturbances malicious persons other than thieves earthquake
government de jure or de facto. storm flood escape of water from any tank apparatus or pipe or
impact by any road vehicle or animal which would but for the
b in respect of territories other than those shown in a above
application of this Exclusion be insured by this Policy.
i any act of Terrorism regardless of any other cause or event
contributing concurrently or in any other sequence to the
loss
ii any action taken in controlling preventing suppressing or
in any way relating to any act of Terrorism
iii riot or civil commotion in Northern Ireland
In respect of b above an act of Terrorism means
Any act including but not limited to the use of force or
violence and/or the 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 religious ideological or similar
purposes including the intention to influence any government
and/or to put the public or any section of the public in fear.

In any action suit or other proceedings where the Insurers allege

that by reason of this Exclusion any Damage or liability is not
covered by this Policy (or is covered only up to a specified Limit of
Liability) the burden of proving the contrary shall be on the
Insured.

In the event any part of this Exclusion is found to be invalid or

unenforceable the remainder shall remain in full force and effect.

46
Construction Project All Risks Policy Wording

General Exclusions

This Policy does not cover loss damage cost(s) expenses 3 Nuclear Site Risks
Financial Loss or legal liability consisting of or in consequence of Damage caused by or consisting of or liability arising from
Damage to any
1 War and Kindred Risks
a Nuclear Material
a Damage death injury disablement or liability or any b Insured Property in connection with
consequential loss directly or indirectly caused by war
i any Contract for construction erection installation repair
invasion act of foreign enemy hostilities (whether war be
maintenance or decommissioning of
declared or not) civil war rebellion revolution insurrection
ii any Contract in or on
military or usurped power confiscation nationalisation
requisition or destruction of or damage to property by order of any building or plant that has been or is used or is designated
the Government or any Public Municipal or Local Authority. to be used for the Production Use or Storage of Nuclear
b in the case of Insured Property outside Great Britain Northern Material.
Ireland the Isle of Man and the Channel Islands Damage death
injury disablement or liability or any consequential loss Definitions
directly or indirectly caused by warlike operations mutiny Production Use or Storage of Nuclear Material means the
conspiracy martial law state of siege or any events or causes production manufacture enrichment conditioning processing use
which determine the proclamation or maintenance of martial storage handling or disposal of Nuclear Material.
law or state of siege riot civil commotion strike lock-out
Nuclear Material means
persons taking part in labour disturbances or malicious
persons acting on behalf of or in connection with any political i nuclear fuel (other than natural uranium and depleted
organisation. uranium) capable of producing energy by a self sustaining
chain process of nuclear fission outside a nuclear reactor
2 Radioactive Contamination either alone or in combination with some other material and
Damage death injury disablement or liability or any consequential ii radioactive products or waste produced in or any material
loss directly or indirectly caused by or contributed to by or arising made radioactive by exposure to the radiation.
from
a ionising radiations from or contamination by radioactivity
4 Other Consequential Losses
liquidated damages penalties for delay or detention or in
from any nuclear fuel or from any nuclear waste or from the
connection with guarantees of performance or efficiency or loss
combustion of nuclear fuel
of use or any other form of consequential loss not specifically
b the radioactive toxic explosive or other hazardous or
provided for by this Policy.
contaminating properties of any nuclear installation reactor or
other nuclear assembly or nuclear component thereof
c any weapon or other device utilising radioactive material
and/or matter and/or ionising radiation and/or atomic or
nuclear fission and/or fusion or other like reaction
d the radioactive toxic explosive or other hazardous or
contaminating properties of any radioactive matter.

Exclusions c and d do not apply to Cover Five.

47
Construction Project All Risks Policy Wording

General Conditions

1 Survey and Risk Improvement – Subjectivity In the event that a risk improvement is not completed or risk
Condition improvement procedures are not introduced within the
completion time scales specified by the Insurers then the Insurers
Subject to Survey reserve the right to
If this Policy has been issued or renewed subject to the Insurers 1 alter the premium or terms and Conditions
completing a survey or surveys of the risks insured then pending 2 cancel this Policy by giving the Insured thirty (30) calendar
completion of such survey(s) cover is provided by the Insurers on days notice in writing at their last known address
the terms Conditions Exclusions and limits as specified in the 3 leave the premium or terms and Conditions unaltered.
Policy and in the Sections of the Policy.
The Insurers will advise the Insured of their decision which will be
In the event that a survey should show that a risk or any part of it is effective either from the expiry of any time period specified by the
not satisfactory in the opinion of the Insurers then the Insurers Insurers for completion/introduction of the required survey risk
reserve the right to improvements or any other period specified by the Insurers.
a alter the premium or terms and Conditions
If the premium terms or Conditions are amended by the Insurers
b cancel this Policy by giving the Insured thirty (30) calendar
then the Insured will have fourteen (14) days to accept or reject
days notice in writing at their last known address
the revised basis of cover.
c leave the premium or terms and Conditions unaltered.
If the Insured elect to reject the revised basis of premium terms or
The Insurers will advise the Insured of their decision and the
Conditions then they shall be entitled to a proportionate refund of
effective date of such decision. If the premium terms or
premium for the unexpired period of cover provided that no claim
Conditions are amended by the Insurers then the Insured will
has been made before the effective date of cancellation.
have fourteen (14) calendar days to accept or reject the revised
basis of cover. If the Insurers exercise their right to cancel the Policy then the
Insured shall be entitled to a proportionate refund of premium for
If the Insured elect to reject the revised basis of premium terms or
the unexpired period of cover provided that no claim has been
Conditions then they shall be entitled to a proportionate refund of
before the effective date of cancellation.
premium for the unexpired period of cover provided that no claim
has been made before the effective date of cancellation. To the extent that this Condition conflicts with any other
cancellation condition then this Condition shall prevail.
If the Insurers exercise their right to cancel the Policy then the
Insured shall be entitled to a proportionate refund of premium for Except in so far as they are expressly varied by this Condition all of
the unexpired period of cover provided that no claim has been the terms Conditions provisions Exclusions and limits of this Policy
made before the effective date of cancellation. shall continue to apply until the Insurers advise otherwise.

Risk Improvements 2 Observation of Policy Terms

No claim will be payable and the Insurer shall not indemnify the The liability of the Insurers will be subject to the Insured
Insured under this Policy unless the Insured has complied with all complying and as appropriate any other person entitled to
survey risk improvements required by the Insurers within the indemnity complying as though they were the Insured with the
completion time scales specified by the Insurer. terms of this Policy.

Provided that
i the Insured will only lose their right to indemnity or payment
for any claim from the date and time at which non
compliance with this Condition occurred and up until the date
and time at which compliance with this Condition is remedied
ii the Insurers shall not deny to the Insured their right to
indemnity or payment for any claim if the Insured can prove
on the balance of probabilities that the failure to comply with
any or all survey risk improvements did not contribute to such
claim.
48
Construction Project All Risks Policy Wording

General Conditions continued

3 Fair Presentation of the Risk 4 Alteration In Risk

a The Insured must make a fair presentation of the risk to the The Insured must notify the Insurers as soon as possible if during
Insurers at inception renewal and variation of the Policy. the Period of Insurance
b The Insurers may avoid the Policy and refuse to pay any claims a the business is wound up or carried on by a liquidator or
where any failure to make a fair presentation is receiver or permanently discontinued
i deliberate or reckless or
ii of such other nature that if the Insured had made a fair b the interest of the Insured ceases other than by death
presentation the Insurers would not have issued the Policy. c there is any alteration to the facts or matters set out in the
The Insurers will return the premium paid by the Insured Schedule or otherwise comprising the risk presentation made
unless the failure to make a fair presentation is deliberate or by the Insured to the Insurers at inception renewal or variation
reckless. of the Policy which materially increases the risk of loss
damage cost(s) expenses Financial Loss or legal liability.
c If the Insurers would have issued the Policy on different terms
had the Insured made a fair presentation the Insurer will not Upon being notified of any such alteration the Insurers may at
avoid the Policy (except where the failure is deliberate or their absolute discretion
reckless) but the Insurers may instead i continue to provide cover under this Policy on the same terms
i reduce proportionately the amount paid or payable on any ii restrict the cover provided under this Policy
claim the proportion for which the Insurers are liable iii impose additional terms
being calculated by comparing the premium actually iv alter the premium
charged as a percentage of the premium which the v cancel the policy.
Insurers would have charged had the Insured made a fair
If the Insured fails to notify the Insurers of any material alteration
presentation and/or
of the risk the Insurers may
ii treat the Policy as if it had included such additional terms
(other than those requiring payment of premium) as the 1 treat the Policy as if it had come to an end as at the date of the
Insurers would have imposed had the Insured made a fair alteration of the risk returning a proportionate amount of the
presentation. premium for the unexpired Period of Insurance if the Insurers
would have cancelled the Policy had they known of the
For the purposes of this condition references to
increase in risk
1 avoiding a Policy means treating the Policy as if it had not
2 treat the Policy as if it had contained such terms (other than
existed from the inception date (where the failure to make a
relating to premium) or other restrictions (if any) from the
fair presentation of the risk occurs before or at the inception
date of the alteration in risk as the Insurers would have applied
of the Policy) the renewal date (where the failure occurs at
had they known of the increase in risk
renewal of the Policy) or the variation date (where the failure
occurs when the Policy is varied) 3 reduce proportionately the amount paid or payable on any
claim the proportion for which the Insurers are liable being
2 refunds of premium should be treated as refunds of premium
calculated by comparing the premium actually charged as a
back to the inception date renewal date or variation date as
percentage of the premium which the Insurers would have
the context requires
charged had they known of the increase in risk.
3 issuing a Policy should be treated as references to issuing the
Policy at inception renewing or varying the Policy as the
context requires.

49
Construction Project All Risks Policy Wording

General Conditions continued

5 Reasonable Precautions 7 Suspension of Cover

If work at the site of the Contract Works shall cease for a period in
It is a condition precedent to the liability of the Insurers that
excess of ninety (90) consecutive days the indemnity provided by
a the Insured shall take all reasonable precautions to safeguard the Insurers for Damage to Insured Property on that contract site
the Insured Property against loss or damage and shall be suspended at the end of the ninetieth (90th) day unless
b the Insured shall maintain the Insured Property in an efficient specifically agreed by the Insurers and shown in this Policy.
condition and take all reasonable steps to ensure that all
Government and other regulations relating to the operation 8 Premium Payment Condition
and use of the Insured Property are observed. The Insured agrees that Premium will be paid in full to the
Insurers within the number of days stated in the Schedule from
6 Joint Code of Practice the Effective Date (or in respect of instalment premiums when
The Insured undertakes to comply with The Joint Code of Practice due).
for the Protection from Fire of Construction Sites and Buildings If the Premium due under this Policy has not been paid to Insurers
Undergoing Renovation Eighth Edition dated July 2012 or a within the agreed terms (and in respect of instalment premiums
subsequent edition or version (referred to as The Joint Code). if the Insured fail to pay one or more instalments whether in full or
The Insurers shall have the right at all reasonable times to enter in part) the Insurers may cancel the Policy by giving the Insured
and inspect the contract site for the purpose of checking whether fourteen (14) calendar days notice in writing at their last known
the conditions comply with The Joint Code. address.

In the event of a breach of The Joint Code the Insurers will inform Provided no claim has been made or incident has arisen which is
the site management of the Contractor specifying the nature of likely to give rise to a claim during the Period of Insurance the
the breach the remedial measures required by the Insurers and Insurers may calculate a proportionate rebate of the premium in
the period within which these must be completed. respect of the unexpired Period of Insurance. The rebate
calculated under this condition will be reduced by all unpaid
Where the Insurers consider a breach is of sufficient importance premiums or unpaid premium instalments due.
written notice shall be sent to the Insured and the Contractor at
their respective addresses by registered post recorded postal Should the Premium be paid within the fourteen (14) calendar
delivery facsimile transmission or by hand. days notice period then the notice of cancellation will
automatically be revoked and the Policy shall remain in force
The notice may suspend or cancel cover thirty (30) calendar days as if the cancellation notice had not been issued.
from the date of the notice.

It being understood that following suspension cover shall be

reinstated when the Insurers are satisfied that remedial measures
have been completed.

In the event of cancellation the Insurers agree to return to the

Insured a pro-rata proportion of the relevant part of the Policy
premium.

50
 Construction Project All Risks Policy Wording

General Conditions continued

9 Declaration and Adjustment of Premium 13 Conditions Precedent

If the Insured does not comply with any part of any condition
a If the premium under this Policy has been calculated (wholly
which makes payment of a claim conditional upon compliance
or in part) upon estimates furnished by the Insured they shall
with it (a condition precedent) the Insurers will not pay for any
keep proper records containing all particulars relative to such
claim except that where the condition concerned
estimates and the Insurers shall be allowed to inspect such
records at all reasonable times. a operates only in connection with particular premises or
Locations the Insurers will pay for claims arising out of an
The Insured shall within one month from the expiry of the
event occurring at other premises or Locations which are not
Period of Insurance supply to the Insurers such particulars as
specified in the condition
the Insurers may require whereupon the premium shall be
adjusted and the difference paid by or allowed to the Insured b operates only at particular times the Insurers will pay for any
as the case may be subject to any minimum premium claim where the Insured shows on the balance of probabilities
specified in the Schedule or if no amount is shown in the that its non-compliance with the condition did not cause or
Schedule seventy five percent (75%) of the deposit premium. contribute to the loss damage cost(s) expenses Financial Loss
or legal liability which occurred
b Any information provided to the Insurers in accordance with
this Condition relating to final Contract Value(s) shall include c would if complied with tend to reduce particular types of loss
damage cost(s) expenses Financial Loss or legal liability or as
i the value of any Free Issue Materials and equipment
the context may require liability the Insurers will pay for any
provided to the Contractor for incorporation in the
claim where the Insured shows on the balance of probabilities
Contract Works.
that its non-compliance with the condition did not cause or
ii professional fees incurred in the design and construction
contribute to the loss damage cost(s) expenses Financial Loss
of the Contract.
or legal liability which occurred.
iii Value Added Tax which is not recoverable by the Insured.

10 Law and Language Applicable

Unless the Insurers agree otherwise
a the language of the Policy and all communications relating to
it will be in English and
b all aspects of the Policy including negotiation and
performance are subject to English law and the decisions of
English courts.

11 Rights of Parties
A person or company who was not a party to this Policy has no
right under the Contracts (Rights of Third Parties) Act 1999 or any
subsequent legislation to enforce any term of this Policy but this
does not affect any right or remedy of a third party which exists or
is available apart from such Act.

12 Assignment
The Insured shall not assign any of the rights or benefits under this
Policy without the prior written consent of the Insurer. The Insurer
will not be bound to accept or be affected by any notice of trust
charge lien or purported assignment or other dealing with or
relating to this Policy.

51
Construction Project All Risks Policy Wording

Claims Conditions

1 Claims Procedures i allow the Insurers in the name of and on behalf of the Insured
to take over and during such periods as they think proper to
In the event of any occurrence giving rise or likely to give rise to a
have the absolute conduct and control of all negotiations and
claim under this Policy it is a condition precedent to the liability of
proceedings which may arise in respect of any claim and its
the Insurers that the Insured shall
settlement and the Insured shall give the Insurers all
a in respect of claims notified under Covers One Two Three and necessary assistance for that purpose.
Four at their own expense deliver to the Insurer
i within thirty (30) calendar days after such occurrence 2 Options for Claims Settlement
(twenty eight (28) calendar days in the case of loss or
a The Insurers may at their option repair reinstate or replace
damage by riot civil commotion strikers locked-out
that which is Damaged or pay for the Damage in money.
workers persons taking part in labour disturbances
malicious persons or theft) or such further time as the If any Insured Property is to be reinstated or replaced by the
Insurer may allow in writing Insurers the Insured shall at their own expense provide all
plans documents books and information as may reasonably
1 full information in writing of the Insured Property and
be required.
the amount of loss or damage
The Insurers shall not be bound to reinstate exactly but only as
2 details of any other insurances on the Insured Property
circumstances permit and in a reasonably sufficient manner.
covered by this Policy
b The Insurers shall not be liable for the cost of repairs
ii all such proof and information relating to the claim as may
undertaken without their written consent except in urgent
reasonably be required
cases where it has been necessary to put minor repairs in
iii if required a statutory declaration of the truth of the claim
hand.
and of any matters connected with it
Provided that
b in respect of claims notified under Covers Five and Six
i the requirements of Claims Conditions 1 and 5 have been
i notify the Insurers as soon as reasonably possible by
complied with and
telephone and in writing
ii the repairs are carried out to the satisfaction of the
ii at their own expense deliver to the Insurer all such proof
Insurers.
and information relating to the claim as may reasonably
be required c Where Damage is confined to a part of the Insured Property
iii at their own expense if required a statutory declaration of the Insurers shall be liable for the value of that part plus the
the truth of the claim and of any matters connected with it cost of any necessary removal and installation for which the
Insured is responsible.
c preserve any Damaged or defective parts of Insured Property
for inspection by the representatives of the Insurers d The Insured shall not be entitled to abandon any property to
the Insurers whether taken into the possession of the Insurers
d in the case of Insured Property lost stolen or suffering wilful
or not.
Damage take all steps (including immediate notice to the
Police) to discover any guilty person and recover the property
e carry out and permit to be taken any reasonable action to
prevent further Damage liability or cost
f in the case of any claim made on the Insured by any third
party forward every claim writ or other document
immediately and unacknowledged to the Insurers
g not pay or offer or agree to pay any money or make any
admission of liability without the prior consent of the Insurers
h furnish at their own expense all particulars and information as
the Insurers require

52
Construction Project All Risks Policy Wording

Claims Conditions continued

3 Fraud 7 Housing Grants Construction and Regeneration

If the Insured or anyone acting on the Insured's behalf Act 1996
a makes any false or fraudulent claim In the event of a construction contract dispute being referred to
an adjudication procedure that complies with the provisions of
b makes any exaggerated claim the Housing Grants Construction and Regeneration Act 1996 the
c supports a claim by false or fraudulent documents devices or following terms and conditions will apply
statements (whether or not the claim is itself genuine) a if a dispute relates to Damage which may be the subject of a
d makes a claim for loss or damage which the Insured or anyone claim under this Policy
acting on the Insured's behalf deliberately caused i the Insured shall immediately notify Insurers when in
the Insurers will receipt of a notice of an intention by another party to refer
i refuse to pay the whole of the claim and the dispute to adjudication
ii recover from the Insured any sums that they have already paid ii the Insured shall provide prior notice to the Insurers of any
in respect of the claim. intention by them to refer any dispute to adjudication

The Insurers may also notify the Insured that they will be treating b the Insured shall co-operate with the Insurers in the conduct
the Policy as having terminated with effect from the date of the of the adjudication. Appointments made by the Insurers shall
earliest of any of the acts set out in sub-clauses a – d above. In that be at the Insurers expense
event the Insured will c the Insured shall not accept an award made by the adjudicator
to the dispute as being final without the prior consent of the
1 have no cover under the Policy from the date of the
Insurers
termination and
d the Insurers will indemnify the Insured against a partial or full
2 not be entitled to any refund of premium. award made by the adjudicator to the extent that this Policy
allows
4 Other Insurances e payment made by the Insurers in respect of an award shall be
Except as provided for under Claims Condition 9 Marine made without prejudice to any rights of subrogation that the
Insurance the Insurers will not indemnify the Insured in respect of Insurers may possess
Damage to Insured Property and/or legal liability which is insured f the Insured shall institute legal proceedings or arbitration in
by or would but for the existence of this Policy be insured by any accordance with the terms of the original Contract to
other policy except in respect of any excess beyond the amount challenge or reopen or stay the enforcement of such
payable under the other policy or which would have been payable adjudicators decision if reasonably requested to do so by the
under the other policy had this insurance not been effected. Insurers. The Insurers will appoint appropriate advisers as they
deem necessary to have appropriate conduct of the
5 Subrogation proceedings. Any of these measures taken shall be at the
Any claimant under this Policy shall at the request and expense of Insurers expense.
the Insurers take or permit to be taken all necessary steps for
This Condition does not apply to Cover Five of this Policy but all
enforcing rights against any other party in the name of the
other terms and Conditions of this Policy shall apply to the extent
Insured before or after any payment is made by the Insurers.
that they are not in conflict with this Condition.

6 Arbitration
If any difference arises as to the amount paid under this Policy
(liability being otherwise admitted) such difference shall be
referred to an arbitrator to be appointed by the parties in
accordance with statutory provisions.

Where any difference is by this Condition to be referred to

arbitration the making of the award shall be a condition precedent
to any right of action against the Insurers.

53
Construction Project All Risks Policy Wording

Claims Conditions continued

8 Repairable Damage
The Insurers will not make a deduction for wear and tear against
the cost of repairable Damage to Contractors Plant or Temporary
Buildings less than twelve (12) months old provided that the cost
of repair does not exceed the market value of the item at the time
of the Damage.

9 Marine Insurance
The Insurers will not indemnify the Insured in respect of Damage
to Insured Property which is insured by or would but for the
existence of this Policy be insured by any other policy except in
respect of Insured Property consigned from outside the Territorial
Limits of this Policy which is also insured under any marine cargo
insurance.

Provided that
a the Insured hereby undertakes to inspect each item of Insured
Property upon arrival at the site of the Contract Works for
possible Damage sustained during transit
b in the case of unpacked goods where Damage is evident such
Damage is to be reported under the marine cargo insurance
c in the case of packed goods which are left in their packaging
until a later date the packing is to be visually inspected for
signs of possible Damage to the goods and should any sign of
Damage be visible the goods themselves are to be unpacked
and inspected and any Damage discovered is to be reported
under the marine cargo insurance
d when the packing of goods manifests in no sign of Damage
and the goods are therefore left packed any Damage
discovered when they are unpacked will be assumed to have
occurred during transit covered under the marine cargo
insurance unless there is clear evidence from the nature of
such Damage that it could only have occurred after expiry of
the marine cargo insurance in the event that no clear
evidence can be found to establish when such Damage was
caused the settlement of the loss will be shared equally
between the marine cargo insurance and the Insurers
e it is understood and agreed that if the applicable Excess under
this Policy and any marine cargo insurance are different the
Insurers under each insurance shall deduct fifty percent (50%)
of its appropriate Excess or deductible from its share of the
adjusted claim
f it is understood and agreed that this Condition only applies in
circumstances where there is a similar Clause or Condition
contained within the marine cargo insurance.

54
Construction Project All Risks Policy Wording

Complaints Notifying a Claim

Procedure
Our aim is to get it right, first time every time. If you have a complaint Claims under this Policy should be notified to the Insurers in
we will try to resolve it straight away but if we are unable to we will accordance with the Claims Condition of the Policy at the following
confirm we have received your complaint within five working days Allianz Office.
and do our best to resolve the problem within four weeks. If we
cannot we will let you know when an answer may be expected. Please provide your Policy number and as much information as
possible about the claim:
If we have not resolved the situation within eight weeks we will issue
you with information about the Financial Ombudsman Service (FOS) Allianz Engineering
which offers a free, independent complaint resolution service. Claims Department
Haslemere Road
If you have a complaint, please contact our Customer Satisfaction Liphook
Manager at: Hampshire
GU30 7UN
Customer Satisfaction Manager, Allianz Engineering, Head Office
Haslemere Road, Liphook, Hampshire, GU30 7UN Tel: 01483 265825
Email: claims@[Link]
Telephone: 01428 722407
Fax: 01428 724824 Lines are open from 9am to 5pm Monday to Friday
Email: [Link]@[Link]

You have the right to refer your complaint to the Financial

Ombudsman, free of charge – but you must do so within
six months of the date of the final response letter.
Financial Services
If you do not refer your complaint in time, the Ombudsman will not
have our permission to consider your complaint and so will only be
able to do so in very limited circumstances. For example, if the
Compensation Scheme
Ombudsman believes that the delay was as a result of exceptional
circumstances. Allianz Insurance plc contributes to the Financial Services
Compensation Scheme (FSCS).
The Financial Ombudsman Service
Exchange Tower You (the Insured) may be entitled to compensation from the FSCS if
London we (the Insurers) are unable to meet our liabilities. Further
E14 9SR information about compensation scheme arrangements is available
at [Link], by emailing enquiries@[Link] or by phoning
Website: [Link] the FSCS on 0800 678 1100 or 0207 741 4100.
Telephone: 0800 0234567 or 0300 1239123
Email: [Link]@[Link]

Using our complaints procedure or contacting the FOS does not affect
your legal rights.

The European Commission has an online dispute resolution service

for consumers who have a complaint about a product or service
bought online. If you choose to submit your complaint this way it
will be forwarded to the Financial Ombudsman Service.

Visit [Link] to access the Online Dispute

Resolution Service. Please quote our e-mail address:
[Link]@[Link].

Alternatively, you can contact the Financial Ombudsman Service directly.

55
Construction Project All Risks Policy Wording

Fair Processing Notice –

how we use personal information
1. Who we are 4. The personal information we collect
When we refer to “we”, “us” and “our” in this notice it means We collect the following types of personal information so we can
Allianz Insurance plc or Allianz Engineering Inspection Services complete the activities in section 2, “How we use personal
Limited. information”:
• basic personal details such as name, age, address and gender
When we say, “individuals” in this notice, we mean anyone
• family, lifestyle and social circumstances, such as marital
whose personal information we may collect, including:
status, dependants and employment type
• anyone seeking an insurance quote from us or whose details
• financial details such as direct debit or payment card
are provided during the quotation process
information
• policyholders and anyone named on or covered by the policy
• photographs and/or video to help us manage policies and
• anyone who may benefit from or be directly involved in the
assess claims
policy or a claim, including claimants and witnesses.
• tracking and location information if it is relevant to the
2. How we use personal information insurance policy or claim
• identification checks and background insurance risk details
We use personal information in the following ways:
including previous claims information
• to provide quotes, administer policies and policyholder claims
• medical information if it is relevant to the insurance policy or
to fulfil our contract
claim
• to administer third party claims and prevent financial crime to
• criminal convictions if it is relevant to the insurance policy or
meet our legal obligations
claim
• to manage our business and conduct market research to
• accessibility details if we need to make reasonable
meet the legitimate needs of our business
adjustments to help
• to send marketing information about our products and
• business activities such as goods and services offered.
services if we have received specific consent.
There is no obligation to provide us with personal information, 5. Where we collect personal information
but we cannot provide our products and services without it. Direct from individuals, their representatives or information they
have made public, for example, on social media.
Anyone whose personal information we hold has the
right to object to us using it. From other persons or organisations, for example:
• credit reference and/or fraud prevention agencies
They can do this at any time by telling us and we will
• emergency services, law enforcement agencies, medical and
consider the request and either stop using their
legal practices
personal information or explain why we are not able to.
• insurance industry registers and databases used to detect and
Further details can be found below. prevent insurance fraud, for example, the Motor Insurance
Database (MID), the Motor Insurers Anti-Fraud and Theft
Register (MIAFTR) and the Claims and Underwriting
3. Automated decision making, including profiling
Exchange (CUE)
We may use automated decision making, including profiling,
• insurance investigators and claims service providers
to assess insurance risks and administer policies. This helps us
• other insurers or service providers who underwrite the
decide whether to offer insurance, determine prices and validate
insurance or provide the services for our products
claims.
• other involved parties, for example, claimants or witnesses.
Anyone subject to an automated decision has the right to
object to it. To do so they should contact us by emailing us at
acccsm@[Link] and we will review the decision.

56
Construction Project All Risks Policy Wording

Fair Processing Notice –

how we use personal information continued

6. Sharing personal information 9. Know your rights

We may share personal information with: Any individual whose personal information we hold has the right to:
• other companies within the global Allianz Group • object to us processing it. We will either agree to stop processing
[Link] or explain why we are unable to (the right to object)
• credit reference, fraud prevention and other agencies that • ask for a copy of their personal information we hold, subject to
carry out certain activities on our behalf, for example, the certain exemptions (a data subject access request)
Motor Insurance Database (MID), the Insurance Fraud Bureau • ask us to update or correct their personal information to ensure
(IFB) and marketing agencies if agreed its accuracy (the right of rectification)
• our approved suppliers to help deal with claims or provide • ask us to delete their personal information from our records if it
our benefit services, for example, vehicle repairers, legal is no longer needed for the original purpose (the right to be
advisors and loss adjusters forgotten)
• other insurers, third party underwriters, reinsurers, insurance • ask us to restrict the processing of their personal information in
intermediaries, regulators, law enforcement and the Financial certain circumstances (the right of restriction)
Ombudsman Service (FOS); and other companies that • ask for a copy of their personal information, so it can be used for
provide services to us or you, for example, the Employers their own purposes (the right to data portability)
Liability Tracing Office (ELTO) and the Claims and • complain if they feel their personal information has been
Underwriting Exchange (CUE) mishandled. We encourage individuals to come to us in the first
• prospective buyers in the event that we wish to sell all or part instance but they are entitled to complain directly to the
of our business. Information Commissioner’s Office (ICO) [Link]
• ask us, at any time, to stop processing their personal information,
7. Transferring personal information outside the UK if the processing is based only on individual consent (the right to
We use servers located in the European Union (EU) to store withdraw consent).
personal information where it is protected by laws equivalent to If you wish to exercise any of these rights please contact our
those in the UK. We may transfer personal information to other Customer Satisfaction Manager:
members of the global Allianz Group to manage the insurance
Address: Customer Satisfaction Manager, Allianz, 57 Ladymead,
policy or claim; this could be inside or outside the EU. We have
Guildford, Surrey, GU1 1DB
Binding Corporate Rules (BCR’s) which are our commitment
Email: acccsm@[Link]
to the same high level of protection for personal information
Phone: 01483 552438
regardless of where it is processed. These rules align with those
required by the European Information Protection authorities.
For more information about BCR’s, contact our Data Protection 10. Allianz (UK) Group Data Protection Officer
Officer. Contact details
Some of our suppliers have servers outside the EU. Our contracts Allianz Insurance plc and Allianz Engineering Inspection Services
with these suppliers require them to provide equivalent levels of Limited are companies within the Allianz Holdings.
protection for personal information. Any queries about how we use personal information should be
addressed to our Data Protection Officer:
8. How long we keep personal information Address: Data Protection Officer, Allianz, 57 Ladymead, Guildford,
We keep information only for as long as we need it to administer Surrey GU1 1DB
the policy, manage our business or as required by law or Email: dataprotectionofficer@[Link]
contract. Phone: 0330 102 1837

57
Construction Project All Risks Policy Wording

Fair Processing Notice –

how we use personal information continued

Changes to our Fair Processing Notice

Occasionally it may be necessary to make changes to this fair
processing notice. When that happens we will provide an updated
version at the earliest opportunity. The most recent version will
always be available on our website [Link].

Consent for Special Categories of Personal Data

The global Allianz Group may need to collect and process data
relating to individuals who may benefit from the policy (“Insured
Persons”), which falls within the special categories of personal data
under Data Protection Legislation, for example, medical history or
convictions of Insured Persons for the purpose of evaluating the risk
and/or administering claims which may occur. You must ensure that
you have explicit verbal or written consent from the Insured Persons
to such information being processed by the global Allianz Group and
that this fact is made known to the Insured Persons.
By applying for and/or entering into this insurance policy you will
be deemed to specifically consent to the use of the Insured Persons
Personal Data in this way and for these purposes and that your
directors, officers, partners, and employees have consented to the
global Allianz Group using their details in this way.

58
Allianz also provide the following covers:

Machinery
All Machinery
Machinery Movement
Machinery Options
Property Engineering

Contractors
Contractors Plant
Erection All Risks

Electronics
Computer
Electronic Equipment

Consequential Loss
Deterioration of Stock
Machinery Business Interruption

NT/19/03
[Link]
ACE2389_7 01.18

Allianz Insurance plc. Registered in England number 84638. Registered office:

57 Ladymead, Guildford, Surrey, GU1 1DB, United Kingdom.
Allianz Insurance plc is authorised by the Prudential Regulation Authority and regulated by the Financial
Conduct Authority and the Prudential Regulation Authority. Financial Services Register number 121849.
Allianz Engineering is a trading name used by Allianz Insurance plc.