Group Insurance for large and small groups Policy

STERLING GROUP INSURANCE POLICY arranged by MORTON MICHEL, ALHAMBRA HOUSE, 9 ST MICHAELS ROAD, CROYDON CR9 3DD Tel. No. 0845 2570900 We are pleased to welcome you as a policyholder of Sterling Insurance Company Limited. This policy is evidence of the contract which you have made with the Company and the completed proposal form incorporating the declaration which you have signed and any other information provided by you in addition to the proposal or in substitution therefor OR the information you have supplied and the application for insurance you have made electronically (hard copy of same enclosed with this policy) and any other information provided by you in addition to or in substitution therefor is the basis of the contract. What forms your contract of insurance: · the application for insurance completed by you or on your behalf (Proposal Form, Statement of Fact or electronic application), · any declaration signed by you in connection with the above, · any written information supplied by you supplementary to the Proposal Form, Statement of Fact or electronic application, · any quotation or confirmation of cover letter, · any document issued by us setting out any conditions that will apply to your policy, · any document stating that this policy of insurance has been issued subject to certain outstanding items and/or actions by you or us, · the Policy, Schedule, Memoranda, Endorsements and Warranties. Please refer to the “Definitions and interpretations” in the policy. These will tell you what words have specific meanings, wherever they appear. Where a statute is referred to in this policy, this will also include any later amendments/replacements of it. The Company will indemnify or compensate you the insured, by payment or, at its option, by replacement, reinstatement or repair in the event of loss, destruction, damage, accident or liability occurring during any period of insurance, subject to the terms and conditions of the policy. Page

The policy consists of the

Inside front cover

Schedule Customer service information

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Definitions and interpretation

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General Conditions

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General Exclusions

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Sections available (see schedule for effective sections) 1 2 3 4 5 6 7 8 9 10 11 12

Public Liability Employers' Liability Group Equipment Group Money Personal Accident for Children at the Group Personal Accident for Adults at the Group Buildings All Risks Trustees' and Officers' Financial Liability Loss of Revenue Legal Expenses Deterioration of Refrigerated/Frozen Food

Endorsements and Warranties

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The policy has been prepared in accordance with your instructions - please read it carefully to make certain that it meets your requirements. Morton Michel will be pleased to provide any further information which you may require. Alterations to the cover will be confirmed by the issue of a new schedule or endorsement which you should file with your policy. Please refer to these replacement documents and the policy to obtain precise details of the cover currently in force. Confidentiality We promise complete confidentiality and security in all matters relating to your insurance arrangements.

N G Cooper C D Russell Director Director Sterling Insurance Company Limited Registered Office: Ambassador House, Paradise Road, Richmond upon Thames, Surrey TW9 1SQ Registered in England and Wales: No. 498605 Authorised and Regulated by the Financial Services Authority

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Customer service information 1.

Sterling Insurance Company Limited Sterling Insurance Company Limited is a private company limited by shares, registered in England and Wales number 498605. It underwrites general insurance business. It is authorised and regulated by the Financial Services Authority (FSA). The FSA is the independent watchdog that regulates financial services. Our FSA Register number is 202012. You can check this on the FSA’s Register by visiting the FSA’s website www.fsa.gov.uk/register or by contacting the FSA on 0845 606 1234. Sterling Insurance Company Limited is a member of Sterling Insurance Group Limited.

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Registered Office:

Ambassador House Paradise Road Richmond upon Thames Surrey TW9 1SQ

Branch Office:

50 Kings Hill Avenue Kings Hill West Malling Kent ME19 4JX

Disability Discrimination Act 1995 In accordance with the Disability Discrimination Act 1995 we are able to provide upon request a textphone facility, audio tapes, large print documentation and Braille documentation. Please advise us if you require any of these services to be provided so that we can communicate in an appropriate manner.

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Law applicable to the contract We propose to choose English law as the law applicable to the contract unless we agree another choice of law with you prior to the start date.

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Premiums Premiums are payable annually to Morton Michel. Insurance premium tax, as imposed by current legislation, is incorporated into all premiums.

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Promise of satisfaction and service We are confident that your Group policy will bring you complete satisfaction. We undertake to refund the premium in full if you are not satisfied with the cover provided by your policy if it is returned within 14 days of issue, but if there has been an incident which has resulted or could result in a claim you must reimburse the Company for any amounts we have paid or may be required to pay, in respect of that incident.

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Duration of contract The first period of insurance under your Group policy will be 12 months unless otherwise requested by you and agreed by the Company.

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Financial Services Compensation Scheme We are covered by the Financial Services Compensation Scheme (FSCS). You may be entitled to compensation from the scheme if we cannot meet our obligations. This depends on the type of business and the circumstances of the claim. Further information about compensation scheme arrangements is available from the FSCS.

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Notification of a claim If you have a claim, or are aware of an incident that could result in a claim, please contact Morton Michel on 0845 2570900 or Sterling Insurance Company Limited on 0845 271 1300.

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Enquiries or complaints If you have an enquiry or complaint regarding: the suitability of this policy for your needs; or the information and advice you received whilst it was originally being discussed; or the operation or administration of the policy; or an enquiry concerning a claim that you may have made you should contact Morton Michel at Alhambra House, 9 St Michaels Road, Croydon CR9 3DD; telephone number 0845 2570900. If you have a complaint concerning a claim you have made you should contact Sterling Insurance Company Limited, 50 Kings Hill Avenue, Kings Hill, West Malling, Kent ME19 4JX; telephone number 0845 271 1300. (A copy of Sterling's complaints handling procedure is available on request by writing to the Customer Services Manager, Sterling Insurance Company Limited, 50 Kings Hill Avenue, Kings Hill, West Malling, Kent ME19 4JX or by telephoning 0845 271 1300.) If your complaint relates to the Legal Expenses cover, please write to The Claims Services Manager, DAS Legal Expenses Insurance Company Limited, DAS House, Quay Side, Temple Back, Bristol BS1 6NH or telephone 0800 015 1407. Please be ready to provide all relevant details of your policy and in particular your policy number (if allocated) to help your enquiry or complaint to be dealt with speedily. If you are not satisfied with the way in which your complaint has been handled, you may have the right to refer it to the Financial Ombudsman Service at South Quay Plaza, 183 Marsh Wall, London E14 9SR; telephone number 0845 080 1800. Please note that the Financial Ombudsman Service will normally only consider a complaint once we have issued a final decision letter. Following this procedure will not affect your legal rights.

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Information about DAS Legal Expenses Insurance Company Limited DAS Legal Expenses Insurance Company Limited is a private company limited by shares incorporated in England and Wales under registered number 103274. It underwrites legal expenses business. Its head and registered office is DAS House, Quay Side, Temple Back, Bristol BS1 6NH. It is authorised and regulated by the Financial Services Authority and appears on the Financial Services Authority’s register under number 202106.

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Helpline Services DAS Legal Expenses Insurance Company Limited provide these services 24 hours a day, seven days a week during the period of insurance. To help us check and improve our service standards, we record all calls except those to the counselling and health and medical helplines. Commercial Legal Advice We will give you confidential legal advice over the phone on any commercial legal problem affecting your business. Tax Advice We will give you confidential advice over the phone on any tax matters affecting your business, under the laws of the United Kingdom. Emergency Repair Support In the event of an unforeseen emergency affecting your business premises (even if you work from home) which causes damage or potential danger, such as a burst pipe, blocked drain or broken window, we will contact a suitable repairer or contractor and arrange assistance on your behalf. All costs of assistance provided are your responsibility. To contact the above services, phone us on 0117 9340569 quoting Morton Michel policy and your policy number. Counselling We will provide you and your employees (including any members of their immediate family who permanently live with them) with a confidential counselling service over the phone including, where appropriate, onward referral to relevant voluntary and/or professional services. Health and Medical Information Service We will give you information over the phone on health and fitness matters and non-diagnostic advice on medical matters. Advice can be given on allergies, side effects of drugs and how to improve general fitness. Information is held on self-help groups and hospital waiting lists and we can provide confidential advice on patient rights, social security and social services matters. To contact the counselling and health and medical helplines, phone us on 0117 934 2121. These calls are not recorded. We will not accept responsibility if the Helpline Services fail for reasons we cannot control. Please do not use the helpline numbers to report a general insurance claim.

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The Employment Manual The DAS Employment Manual offers comprehensive, up to date guidance on rapidly changing employment law. To view it, please visit our website at www.das.co.uk. From the Home Page click on the Employment Manual icon. All the sections of this web-based document can be printed off for your own use. Contact us at [email protected] with your e mail address, quoting your policy number and we will contact you by e mail to inform you of future updates to the information.

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Definitions and interpretation In this policy accidental damage means damage caused by accidental and external means act of terrorism means acts of persons acting on behalf of, or in connection with, any organisation which carries out activities directed towards the overthrowing or influencing, by force or violence, of Her Majesty's government in the United Kingdom or any other government de jure or de facto bodily injury means death, injury, illness, disease or shock buildings means the buildings and outbuildings, constructed as stated in accordance with details lodged with Morton Michel, and their foundations; landlord's fixtures and fittings therein and thereon; extensions, annexes, tanks, bunds, gangways and conveniences; walls; piping, ducting, cable wires and associated control gear and accessories on the premises or in the buildings and extending to the perimeter thereof or the public mains but only to the extent of the insured's responsibility therefor; yards, car-parks, pavements, pathways and roadways, all situate at the risk address stated in the schedule. business means the provision of organised and supervised Group activities as advised to and agreed in writing by Morton Michel (including organised and supervised outings away from the premises for up to three consecutive days) business hours means the period during which the premises are open for business or otherwise occupied for the purpose of the business by any authorised Group official Company/we/us means

- for all Sections other than the Legal Expenses Section - Sterling Insurance Company Limited - for the Legal Expenses Section - DAS Legal Expenses Insurance Company Limited

employee means any person under a contract of service or apprenticeship with the insured or supplied to or hired to or borrowed by the insured including any person under a work experience training scheme, whilst engaged in work in connection with the business Group means any group of persons assembled for the provision of organised and supervised educational, social, community or support activities as advised to Morton Michel governed by, and registered in accordance with, the Children Act 1989 where applicable Group equipment means any property of the insured or for which the insured is responsible used solely in connection with the business but excluding property more specifically insured, motor vehicles and accessories whilst therein or thereon, money, personal effects, tenant’s improvements, alterations, decorations, landlord’s fixtures and fittings, glass and buildings Group official means the director, the proprietor, any employee or delegated voluntary helper of the Group money means coin, bank and currency notes, cheques, postal and money orders, bankers’ drafts, postage, revenue, national insurance and holiday with pay stamps, national savings certificates, luncheon vouchers, trading stamps, credit card sales vouchers, pre-paid phone and bus cards, tokens accepted by the business and VAT purchase invoices parent means the person with legally recognised parental or guardian responsibility period of insurance means the period stated in the schedule or any other period for which the Company has agreed to accept and for which the insured has paid a premium which has been accepted by Morton Michel pollution and contamination means pollution and contamination, sooting, deposition, impairment with dust, chemical precipitation, poisoning, epidemic and disease (including but not limited to foot and mouth disease), adulteration, impurification or limitation or prevention of the use of objects because of hazards to health premises means the building or that part of the building situated as stated in the schedule, occupied by the insured for the purpose of the business or as otherwise advised to and agreed in writing by Morton Michel products means any goods, including containers, packaging, labelling and instructions for use, sold, supplied, processed, delivered, installed, tested, repaired, serviced, altered, treated or hired out by the insured in connection with the business from the premises and no longer in the insured’s possession or control territorial limits means Great Britain, Northern Ireland, the Isle of Man or the Channel Islands unattended vehicle means any vehicle left without any Group official remaining therein you/insured means the limited company, proprietor, nominated official or management committee for the time being of the Group named in the schedule.

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General Conditions 1 2

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Avoidance of policy This policy shall be voidable in the event of misrepresentation, misdescription or non-disclosure in any material particular. Cancellation The insured may cancel this policy by giving written instructions to Morton Michel or the Company. The Company may cancel this policy or any section by sending a recorded delivery letter to the last known address of the insured giving seven days notice. The insured may cancel the policy within 14 days of issue, returning the policy document and schedule, and receive a full refund of premium (but if there has been an incident which has resulted or could result in a claim, the insured must reimburse the Company for any amounts we have paid or may be required to pay, in respect of that incident). In the event of cancellation by the insured after 14 days of issue, the Company will refund a pro rata proportion of the premium paid in respect of the unexpired term of this policy unless a claim or an incident likely to give rise to a claim has occurred during the current period of insurance; if the cancellation occurs in the first year of insurance there will be a maximum administration charge of 10% of the Annual Premium deducted from said refund, if the cancellation occurs in any subsequent year of insurance there will be a maximum administration charge of 5% of the Annual Premium current at that time deducted from said refund. In the event of cancellation by the Company, the Company will refund a pro rata proportion of the premium paid in respect of the unexpired term of this policy unless a claim or an incident likely to give rise to a claim has occurred during the current period of insurance. If the insured is paying by monthly instalments the Company - will stop applying for the monthly premium - may exercise its right to collect the balance of any outstanding premium in the event of a claim. If the insured has agreed to pay the premiums by instalments and fails to pay any of those instalments, the Company reserves the right to cancel the policy. Change in risk This policy shall be voidable from the date of a change in risk if a) the insured's interest ceases other than by death or b) the business be wound up or carried on by a liquidator or receiver or permanently discontinued or c) any alteration be made either in the business or in the premises or in any property therein or in any other circumstances which may increase the possibility of loss, destruction, damage or accidental bodily injury covered by this policy at any time after the commencement of this insurance unless the Company has agreed in writing to its continuance. Claims On the happening of any event which could result in a claim under this policy (disregarding any deductible) it is a condition precedent to liability that the insured shall a) advise Morton Michel or the Company in writing as soon as practicable b) not make any admission of liability or promise of payment without the Company's written consent c) notify the police as soon as reasonably practicable following loss, destruction or damage by theft, riot, vandalism or malicious act or if property be accidentally lost d) in respect of any loss, destruction or damage to the property insured submit, at the insured's own expense, a claim in writing with all such particulars and proofs as may be reasonably required within i) seven days (or as soon as reasonably practicable after that date) in the case of loss, destruction or damage caused by riot, civil commotion, strikes, labour disturbances or malicious persons ii) thirty days (or as soon as reasonably practicable after that date) in the case of any other loss, destruction or damage e) inform the Company as soon as reasonably practicable of any claim being made, or of any impending prosecution, inquest or fatal accident inquiry; every letter, claim, writ or other document relating to any accident, claim, prosecution or civil proceedings must be sent to the Company as soon as reasonably practicable, unacknowledged f) give all such information and assistance as the Company may request. Contracts (Rights of Third Parties) Act 1999 No person, persons, company or other party who is not named as the insured in this policy shall have any right under the Contracts (Rights of Third Parties) Act 1999 to enforce any terms or conditions of this policy. This shall not affect any right or remedy of a third party that exists or is available apart from that Act. Disputes Provided that liability under the policy has been admitted, if there is any dispute over the amount to be paid by the Company the matter will be referred to arbitration and the arbitrator will be appointed by the parties concerned according to the relevant statutory provisions in force at the time. In such a case there will be no right of action against us unless an award is made. Fraud If any insured or anyone acting for the insured makes a claim under this policy knowing the claim to be false or fraudulent in any respect or if any damage is caused by the wilful act of or with the connivance of the insured the Company will not pay the claim and all cover under the policy will cease from the date of the incident or circumstances in respect of which the fraudulent claim was made. Law applicable Under United Kingdom law the parties to the contract have the right to choose the law which should apply. In the absence of any agreement to the contrary, English law will apply. Other insurance If at the time of any loss, destruction or damage or at the time of the occurrence of any incident which may result in the insured being held legally liable for the consequences thereof and which is covered under this policy, there is any other insurance in force which covers the same loss, destruction, damage or legal liability, the Company’s liability will be limited to its rateable proportion. Reasonable care It is a condition precedent to liability that the insured shall a) take all reasonable precautions to prevent loss, destruction, damage, accident or bodily injury b) keep the premises, buildings and other maintainable property which is insured by this policy in a satisfactory state of repair c) comply with all relevant statutory requirements and other regulations imposed by any authority and manufacturers' recommendations all relating to the use inspection and safety of property and the safety of persons d) as soon as possible after discovery, cause any defect or danger to be made good or remedied and in the meantime shall cause such additional precautions to be effected as the circumstances may require e) exercise due care in the selection and supervision of employees (such due care in the selection of staff must include, but not be restricted to, the checks on prospective staff available from OFSTED or other registering authority).

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Registration It is a condition precedent to liability that the Group insured by this Policy shall be registered with the appropriate Registering Authority if applicable and all terms of such registration shall be complied with at all times. Reinstatement of sum insured It is agreed that in the absence of written notice by the insured or the Company to the contrary, the Company’s liability shall not stand reduced by the amount of any loss, provided the insured undertakes to pay any appropriate premium for such automatic reinstatement of cover and implements immediately any recommendations made by the Company to prevent further loss, destruction or damage and effects all repair or replacement work without delay. Rights In the event of loss, destruction or damage to the property insured the Company will be entitled to enter any building where such loss, destruction or damage has happened and to take and keep possession of such property insured and to deal with the salvage in a reasonable manner and this policy shall be proof of leave and licence for such purpose. No property may be abandoned to the Company. Subrogation Before or after the Company has indemnified the insured the Company will be entitled to undertake in the name of and on behalf of the insured the absolute conduct, control and settlement of any proceedings and to take proceedings at its own expense and for its own benefit but in the name of the insured to recover compensation or secure indemnity from any third party in respect of anything covered by this policy. Underinsurance Whenever a sum insured is declared to be subject to this underinsurance condition, if the property insured by such item shall at the commencement of any loss, destruction or damage hereby insured against be collectively of greater value than such sum insured, then the insured shall be considered as being his own insurer for the difference and shall bear a rateable proportion of the loss. Warranty Every warranty shall from the time the warranty attaches apply and continue to be in force during each subsequent period of insurance. Non-compliance with any such warranty, in so far as it increases the risk of loss, destruction, damage or accidental bodily injury, shall be a bar to any claim for such loss, destruction, damage or accidental bodily injury.

General Exclusions The Company will not be liable for 1

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loss, destruction or damage to property or any expense, consequential loss or legal liability or bodily injury directly or indirectly caused by or contributed to by or arising from a) war, invasion, act of foreign enemy, hostilities (whether war be declared or not), civil war, rebellion, revolution, insurrection or military or usurped power b) pressure waves caused by aircraft or other aerial devices travelling at sonic or supersonic speeds c) confiscation, nationalisation or requisition by order of any government or public, municipal, local or customers authority d) erasure, loss, distortion or corruption of information on, or reduction in the functionality, availability or operation of any computer system, or any hardware, program, software, data, information repository, disk, microchip, integrated circuit or similar device in computer equipment or non-computer equipment, whether the property of the insured or not, caused by malicious introduction or incursion of any unauthorised, unintended, undesired or unexpected program, instruction or command or any other computer or electronic virus a) loss, destruction or damage to property caused by pollution or contamination except (unless otherwise excluded) loss, destruction or damage to the property insured caused by i) pollution or contamination which itself results from a contingency hereby insured against (other than by leakage of oil or by accidental damage to underground service pipes or cables) which comprises a sudden, identifiable, unintended and unexpected event and occurs in its entirety at a specific time and place during the period of insurance ii) any contingency hereby insured against (other than by leakage of oil or by accidental damage to underground service pipes or cables) which itself results from pollution or contamination b) loss under any Business Interruption section or sub-section of this policy resulting from pollution or contamination but this will not exclude loss resulting from damage at the premises to property used by the insured for the purpose of the business (unless otherwise excluded) caused by i) pollution or contamination at the premises which itself results from a contingency hereby insured against (other than by leakage of oil or by accidental damage to underground service pipes or cables) which comprises a sudden, identifiable, unintended and unexpected event and occurs in its entirety at a specific time and place during the period of insurance ii) any contingency hereby insured against (other than by leakage of oil or by accidental damage to underground service pipes or cables) which itself results from pollution or contamination c) loss under any Public Liability or Products Liability section or sub-section of this policy resulting from legal liability directly or indirectly caused by or arising from pollution or contamination unless caused by a sudden, identifiable, unintended and unexpected event which occurs in its entirety at a specific time and place during the period of insurance provided that i) all pollution and contamination arising out of such event will be deemed to be one occurrence irrespective of the length of time or number of periods of insurance over which such pollution or contamination occurs ii) the liability of the Company for all damages payable arising out of all pollution or contamination which is deemed to have occurred during any one period of insurance will not exceed the Limit of Liability for any Public Liability or Products Liability section or sub-section of the policy stated herein Definition and interpretation - for the purposes of General Exclusion 2c) only pollution and contamination includes (a) all pollution or contamination of buildings or other structures or of water or land or the atmosphere and (b) all loss or damage or injury directly or indirectly caused by such pollution or contamination loss, destruction or damage a) to property undergoing any process involving the application of heat b) to any electrical machine or apparatus or component thereof occasioned by its over-running, excessive pressure, short-circuiting or self-heating not resulting in fire c) arising from theft or attempted theft where any Group official be concerned as principal or accessory d) due to theft or attempted theft, malicious damage, leakage of water following bursting or overflowing of water pipes, water apparatus or water tanks or from any automatic sprinkler installation, leakage of oil or breakage of glass and sanitary ware i) during any period when the business has ceased to trade whether the premises are unfurnished or otherwise ii) whilst the buildings are unfurnished or untenanted e) due to disappearance, unexplained loss, inventory shortage, misfiling or misplacing of information f) caused by wear, tear or any gradually operating cause a) loss, destruction or damage b) consequential loss, additional expenditure or extra expenses c) legal liability d) other fees, costs, disbursements, awards or other expenses of whatsoever nature directly or indirectly caused by or consisting of or contributed to by or arising from the failure in whole or in part of i) any computer ii) any data processing equipment or media, microchip, integrated circuit or similar device iii) any computer software whether the property of the insured or not and whether occurring before, during or after the year 2000 to achieve all or any of the purposes and effects intended by the use of any number and/or word to denote a date, including the failure to (a) correctly recognise any date as its true calendar date (b) recognise, capture, save, retain or restore and/or correctly to manipulate, interpret, calculate or process any data or information or command or instruction as a result of treating any date otherwise than its true calendar date (c) recognise, capture, save, retain, restore and/or correctly to manipulate, interpret, calculate or process any data or information as the result of the operation of any command which has been programmed into any computer software or hardware 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 but in respect of all Commercial classes of insurance other than Public Liability or Products Liability this shall not exclude subsequent loss, destruction or damage to property specifically insured by any item, section or endorsement of this policy, or any expense or any consequential loss additional expenditure or extra expense (not otherwise excluded) which itself results from the following contingencies or perils fire, lightning, explosion, aircraft and other aerospatial devices or articles dropped therefrom, riot, civil commotion, strikers, locked-out workers, persons taking part in labour disturbances, malicious persons, earthquake, subterranean fire, impact by any mechanically propelled vehicle or by goods falling therefrom or by animals, theft or any attempt thereat, storm, flood, or escape of water or oil from any pipe, tank or apparatus

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loss, destruction or damage or any expense or consequential loss happening in Northern Ireland occasioned by or happening through or in consequence directly or indirectly of riot, civil commotion and (except in respect of loss, destruction, damage, expense or consequential loss by fire or explosion) strikers, locked-out workers or persons taking part in labour disturbances or malicious persons. In any action, suit or other proceedings where the Company alleges that by reason of this General Exclusion any loss, destruction, damage, expense or consequential loss is not covered by this policy the burden of proving that such loss, destruction, damage, expense or consequential loss is covered shall be upon the insured

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loss, destruction, or damage to property or any cost or expense or consequential loss directly or indirectly caused by, contributed to by, resulting from or arising out of or in connection with any act of terrorism or any action taken in controlling, preventing, suppressing, retaliating against, responding to or in any way relating to any act of terrorism, regardless of any other cause or event contributing concurrently or in any other sequence to the loss. If the Company alleges that by reason of this exclusion any loss, destruction, damage, cost or expense is not covered by this policy the burden of proving the contrary shall be upon the insured

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loss, damage, cost or expense of whatsoever nature directly or indirectly caused by, resulting from or in connection with any of the following regardless of any other cause or event contributing concurrently or in any other sequence to the loss: a) b) c)

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ionising radiations from or contamination by radioactivity from any nuclear fuel or from any nuclear waste or from the combustion of nuclear fuel the radioactive, toxic, explosive or other hazardous or contaminating properties of any nuclear installation, reactor or other nuclear assembly or nuclear component thereof any weapon of war employing atomic or nuclear fission and/or fusion or other like reaction or radioactive force or matter.

Section 1 - Public Liability This section is applicable only if a Limit of Indemnity is shown for Section 1 in the schedule

Definitions and interpretation For the purpose of this section only act of terrorism means an activity that a) involves a violent act or the unlawful use of force or an unlawful act dangerous to human life, tangible or intangible property or infrastructure, or a threat thereof; and b) appears to be intended to (i) intimidate or coerce a civilian population, or (ii) disrupt any segment of the economy of a government de jure or de facto, state or country, or (iii) overthrow, influence, or affect the conduct or policy of any government de jure or de facto by intimidation or coercion, or (iv) affect the conduct of a government de jure or de facto my mass destruction, assassination, kidnapping or hostage-taking asbestos means asbestos, asbestos fibres, any derivatives of asbestos and any product containing asbestos, asbestos fibres or any derivatives of asbestos bouncy castle means play equipment with a horizontal, inflatable base and inflatable sides designed and intended solely for children to bounce in or on and for no other recreational activity business means the provision of organised and supervised Group activities as advised to and agreed in writing by Morton Michel (including organised and supervised outings away from the premises for up to three consecutive days) including a) provision and management of catering, social, sports educational and welfare facilities for the benefit of employees, first aid, medical, ambulance, fire and security services and maintenance of the insured’s premises b) private duties undertaken by an employee for the insured, or, with the insured’s consent, for any director, partner or official of the insured c) participation as an exhibitor at trade shows or exhibitions employee means a) any person under a contract of service or apprenticeship with the insured or with some other employer and who is supplied to or hired to or borrowed by the insured b) any labour master or labour only sub-contractor or any person supplied by them c) any self-employed person performing work of a kind ordinarily performed under a contract of service or apprenticeship with the insured provided that such work is under the authority and control of the insured d) any person who is engaged under a Government or otherwise authorised work experience, training, study, exchange or similar scheme e) any regular voluntary worker motor vehicle means mechanically propelled vehicle or plant (or trailer attached thereto) in respect of which insurance or security is necessary to meet the requirements of road traffic legislation.

Cover The Company will indemnify the insured against all amounts which the insured shall become legally liable to pay as damages in respect of a) accidental bodily injury (including death) to any person b) accidental loss or destruction of or accidental damage to material property c) accidental obstruction, accidental trespass or accidental nuisance resulting in interference with or loss of enjoyment of material property happening in connection with the business and occurring during the period of insurance within the territorial limits.

Additional cover The cover under this section is extended to include the following 1

Contingent motor liability (non-owned vehicles) Notwithstanding Special exclusion 2iii) the Company will indemnify the insured in respect of legal liability for accidental bodily injury to any person or accidental loss or destruction of or accidental damage to material property arising out of the use of any motor vehicle not the property of nor provided by the insured but being used in connection with the business. Provided that the Company shall not be liable under this extension a) in respect of loss or destruction of or damage to such vehicle or to goods conveyed therein or thereon b) for bodily injury to any person or loss or destruction of or damage to property arising whilst such vehicle is being driven by or under the control of any person who does not hold a licence to drive such vehicle c) in respect of any liability in connection with any motor vehicle which to the knowledge of the insured does not have the necessary insurance or security to meet the requirements of road traffic legislation d) in respect of any liability more specifically insured.

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Cross liabilities Where there is more than one person named as the insured in the schedule this section shall apply separately to each named person as if each is insured by a separate policy, provided always that the maximum liability of the Company in the aggregate to all parties insured shall not exceed the limit of liability in any one period of insurance.

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Indemnity to members The Company will indemnify at the request of the insured any member of the insured organisation, or any legal representative of such member in the event of their death, against legal liability in respect of which the insured would have been entitled to indemnity under this policy if the claim had been made against the insured Provided that a) any person indemnified is not entitled to indemnity under any other insurance b) any person indemnified shall observe, fulfil and be subject to the terms and conditions of the policy so far as they can apply c) the Company will retain the sole conduct of any claim d) the maximum liability of the Company in the aggregate for damages to the insured and any such members shall not exceed the Limit of liability.

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Indemnity to other persons The Company will indemnify at the request of the insured a) any director, partner or employee of the insured b) any officer committee member or other person employed by the insured's catering, social, sports, educational or welfare organisations or first-aid, medical, ambulance, fire or security services c) any director, partner or official for whom with the consent of the insured an employee is undertaking private work d) any principal or public or local authority as far as is necessary to meet the requirements of any contract or agreement entered into by the insured for the performance of work e) the owner of plant hired by the insured but only to the extent of the conditions of hire f) any legal representative of any of the above in the event of their death against legal liability in respect of which the insured would have been entitled to indemnity under this policy if the claim had been made against the insured Provided that i) any person indemnified is not entitled to indemnity under any other insurance ii) any person indemnified shall observe, fulfil and be subject to the terms and conditions of this policy as far as they can apply iii) the Company will retain the sole conduct and control of any claim iv) the maximum liability of the Company in the aggregate for damages to the insured and any such persons shall not exceed the limit of liability.

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Leased, hired and rented premises In the event of the premises being leased, hired or rented to or in the custody of or under the control of the insured, Special exclusion 3 relating to such property shall be deemed not to apply provided that the Company shall not be liable in respect of liability assumed by the insured under a contract or under a tenancy agreement if such liability would not have attached in the absence of such contract or agreement.

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Legal costs and solicitors’ fees The Company will pay in addition to the indemnity provided a) all legal costs recoverable from the insured by any claimant b) any other costs and expenses of litigation incurred with the Company’s written consent c) solicitors’ and counsels’ fees for legal representation at any coroner’s inquest or fatal accident inquiry.

Limit of liability The Company’s liability in respect of compensation for any occurrence giving rise to a claim or number of claims which arise from one cause shall not exceed the amount stated in the schedule.

Special exclusions The Company will not be liable under this section in respect of 1 bodily injury to any employee arising out of and in the course of his employment by the insured in the business (see Section 5) 2 a) loss or destruction of or damage to property b) bodily injury sustained by any person arising from the ownership, possession or use by or on behalf of the insured of i) any aircraft, aerial device, hovercraft, watercraft, caravan or animal ii) any lift, elevator, hoist, crane, steam boiler or other apparatus operating under steam pressure, for which a statutory inspection certificate is required but which is not in force iii) any motor vehicle 3 loss or destruction of or damage to a) property owned by or leased, hired or rented to the insured (see Additional cover 5) b) property belonging to or held in trust by or in the custody of or under the control of any Group official or any child attending the Group 4 liability which attaches solely under the terms of any contract or agreement if such liability would not have attached in the absence of such contract or agreement 5 liability arising from or caused by a) the use of any adventure playground facility comprised of aerial runways, scrambling nets, tree walks and other structures constructed (or partly constructed) from materials not originally intended for play or recreational use (eg telegraph poles, tyres, drainage pipes, etc) b) the provision or administering of any treatment other than i) first aid treatment ii) the administration of drugs and medicines strictly in accordance with Special condition 2 iii) the administration or provision of oxygen, gastro feeding, naso-gastric tube feeding, cleaning and changing of feeding or tracheostomy/tracheotomy tubes and emptying/changing stoma bags strictly in accordance with Special condition 3 c) the provision of advice or any plan, design, formula or specification d) breach of professional duty e) the use of solaria, sunbeds, saunas and hydro-massage facilities

10

f)

6 7 8 9 10

11 12 13

14 15 16

fund raising activities other than i) events of a non-sporting activity nature involving only Group officials, children who attend the Group and members of their family ii) any other event notified to and accepted in writing by Morton Michel g) the use or ownership of velcro wall, “bar fly” or similar equipment h) any diagnosis, therapy, or medical advice given or performed i) inflatable play equipment, other than bouncy castles used by the Group for the children attending the Group (or other children in their family) j) cycling on public roads bodily injury or loss or destruction of or damage to property caused by products other than food or drink for consumption by employees, Group officials or visitors loss or destruction of or damage to products nor the cost of making good or recalling such products loss or destruction of or damage to that part of any property upon which the insured is or has been working fines, penalties or liquidated, punitive, exemplary or multiple damages liability arising from and or caused by any processes or work in connection with offshore installations for the purpose of this special exclusion only a) offshore installation means any platform or rig or any aircraft or vessel servicing a platform or rig b) it is understood that any person is deemed to be “offshore” as from the time when they embark onto a conveyance at the point of final departure to an offshore installation and that any person shall continue to be deemed to be “offshore” until such time as they disembark from a conveyance onto land upon their return from an offshore installation liability arising, directly or indirectly, out of exposure to inhalation of, or fears of the consequences of exposure to, or inhalation of, asbestos the cost of cleaning up, or removal of, or damage to property arising out of any asbestos liability at law for loss, damage, cost or expense of whatsoever nature directly or indirectly arising out of, contributed by, caused by, resulting from, or in connection with any of the following, or any action taken in controlling, preventing, suppressing, retaliating against or responding to any of the following, regardless of any other cause or event contributing concurrently or in any other sequence of the loss: a) war, invasion, acts of foreign enemies, hostilities or warlike operations (whether war be declared or not), civil war, mutiny, revolution, rebellion, insurrection, uprising, military or usurped power, confiscation by order of any public authority or government de jure or de facto or martial law; or b) riots, strikes, or civil commotion; or c) any act of terrorism If the Company alleges that by reason of this exclusion any actual or alleged losses, liabilities, damages, injuries, defence costs, costs or expenses is not covered by this section the burden of proving the contrary shall be upon the insured loss, destruction, damage, accident or liability caused by or happening through the wilful, malicious or criminal act of the insured or any employee of the insured or any other person indemnified by this policy liability arising from or caused by or contributed to by activities not advised to and agreed in writing by Morton Michel damages for bodily injury or loss or destruction of or damage to property unless the action is brought against the insured in a Court of Law within the territorial limits.

Special conditions 1

It is a condition precedent to the liability of the Company that whenever bouncy castles are used: a) the manufacturers' and/or suppliers' instructions regarding use, safety and maximum recommended numbers of children must be complied with at all times; b) no adult must be allowed to play on the bouncy castle; c) the location and the moorings for the bouncy castle must be safe and suitable; d) the bouncy castle equipment must be checked by a Group Official before use to ensure that there is no defect or damage; e) at least two members of staff must supervise the bouncy castle at all times; f) safety mats must be in the correct place and kept clear at all times; g) supervising staff must be able to see all children on the bouncy castle and be close enough to support any child that may come off or be in need of help; h) the bouncy castle must be deflated when not in use; i) one member of staff must check the bouncy castle every half hour to ensure that the moorings are stable, the blower is pumping in air correctly and the air vents are secure; j) a trained First Aider must be present on site; k) food and drink must not be permitted on the bouncy castle; l) children must not be permitted to (i) wear jewellery, watches or shoes/boots/trainers etc, or have any sharp or pointed objects whilst on the bouncy castle (ii) perform any type of acrobatics or climb the walls or supporting pillars of the bouncy castle (iii) go either around the back or the sides of the bouncy castle at any time (iv) have access to the bouncy castle whilst it is being deflated; m) children must (i) walk on and off the bouncy castle on all occasions (ii) be grouped in relation to their size and age.

2

It is a condition precedent to liability that the administration of drugs or medicines takes place only under the following conditions:a) In all cases: (i) The parent/guardian of each child attending the Group must provide details of any known allergy to medication suffered by their child. Such details to be recorded by the Group in the drugs/medicine register and consulted before any emergency administration of drugs or medicines. (ii) The drug or medicine must have been prescribed by the child’s General Practitioner or consultant or given to the Group by the child’s parent/guardian or the child’s General Practitioner or consultant. (iii) The drug or medicine must be kept in a secure place with access only by authorised persons. (iv) A clear label, with the child’s name, must be attached to the drugs or medicine.

11

(v)

b)

3

A drugs/medicine register must be kept showing: (a) the child’s name (b) type of drug/medicine administered (c) date and time administered (d) dosage (e) name and signature of person administering the drug/medicine (f) name and signature of witness (g) time of notification to child’s parent/guardian when an administration of drug or medicine has been given in an emergency (h) note of any known allergy to medication suffered by children attending the Group. (vi) The insured must familiarise themselves and comply with all relevant requirements of their statutory registering authority concerning the administration of drugs and medicines. (vii) The insured must have a letter of authorisation from the child’s parent/guardian containing clear instructions for the administration of non-prescribed drugs or medicines, prescribed oral medication or asthma inhalers. In cases where occasional, regular or emergency medication is required such as epipens, hypodermic injections or tubeadministered medication (but not including non-prescribed drugs or medicines, prescribed oral medication or asthma inhalers which are dealt with under 2 a) above), the insured must comply with (i) to (vi) above AND IN ADDITION (viii) The insured must have a letter from the child’s parent/guardian providing specific consent for the insured to administer the medication. (ix) The insured must have a letter from the child’s General Practitioner or consultant stating: (a) what condition the drug or medicine is for with its name (b) how and when the drug or medicine is to be given (c) what training of personnel is required, if any (d) any other relevant information (x) Training in the administration of the drug or medicine must be as stipulated by the child’s general practitioner or consultant and, if required, the insured must provide proof of such training.

It is a condition precedent to liability that the administration or provision of oxygen, gastro feeding, naso-gastric tube feeding, cleaning and changing of feeding or tracheostomy/tracheotomy tubes and emptying/changing stoma bags takes place only under the following conditions: a)

The insured must have a letter from the child’s General Practitioner or consultant stating: (i) the child’s condition and the health support procedures required (ii) what training of personnel is required (iii) what medical experience is required (iv) any other relevant information.

b)

The insured must have a letter from the child’s parent/guardian providing specific consent for the insured’s staff to administer/ provide the health support procedures required.

c)

The insured must ensure that any person administering/providing the required health support procedures has the medical experience and training specified by the child’s General Practitioner or consultant and, if required, provide proof of such training.

d)

The insured must familiarise themselves and comply with all relevant requirements of their statutory registering authority concerning the administration/provision of the health support procedures.

4

The Company may at any time pay to the insured the amount of the Limit of liability less any amount already paid, or any lesser amount for which any claim or claims can be settled, and shall then cease to have the conduct and control of the negotiations, actions or proceedings and be under no further liability in respect of such claim or claims except for costs and expenses incurred prior to the date of such payment.

5

It is a condition precedent to the liability of the Company that, when selecting and appointing staff, the insured shall: a)

carry out all investigations recommended by OFSTED or any other competent authority on all current and prospective employees and regular voluntary helpers;

b)

obtain all relevant Criminal Records Bureau Disclosures on all current and prospective employees and regular voluntary helpers;

c)

act reasonably in response to the information obtained.

6

All visiting instructors or demonstrators must have their own Public Liability insurance covering their activities, effective and with a limit of indemnity of at least £1,000,000.

7

Any horse riding activity must be at authorised riding centres only, with their own Public Liability insurance, effective and with a limit of indemnity of at least £1,000,000.

8

A qualified Life Saver or a qualified swimming teacher/coach must be in attendance at all times whenever swimming activities are undertaken.

9

It is a condition precedent to the liability of the Company that whenever trampolines are used:

12

a)

the manufacturers’/suppliers’ instructions regarding use, safety and recommended numbers of children must be complied with at all times;

b)

the use of such equipment has been notified to Ofsted or other registering authority where applicable and no concerns or objections have been raised, and any requirements complied with.

Section 2 - Employers’ Liability This section is applicable only if a Limit of Indemnity is shown for Section 2 in the schedule

Definitions and interpretation For the purpose of this section only act of terrorism means an activity that a) involves a violent act or the unlawful use of force or an unlawful act dangerous to human life, tangible or intangible property or infrastructure, or a threat thereof; and b) appears to be intended to (i) intimidate or coerce a civilian population, or (ii) disrupt any segment of the economy of a government de jure or de facto, state or country, or (iii) overthrow, influence, or affect the conduct or policy of any government de jure or de facto by intimidation or coercion, or (iv) affect the conduct of a government de jure or de facto my mass destruction, assassination, kidnapping or hostage-taking business means the provision of organised and supervised Group activities as advised to and agreed in writing by Morton Michel (including organised and supervised outings away from the premises for up to three consecutive days) including a) provision and management of catering, social, sports educational and welfare facilities for the benefit of employees, first aid, medical, ambulance, fire and security services and maintenance of the insured’s premises b) private duties undertaken by an employee for the insured, or, with the insured’s consent, for any director, partner or official of the insured c) ownership and maintenance of buildings, premises and land used in connection therewith d) participation as an exhibitor at trade shows or exhibitions employee means a) any person under a contract of service or apprenticeship with the insured or with some other employer and who is supplied to or hired to or borrowed by the insured b) any labour master or labour only sub-contractor or any person supplied by them c) any self-employed person performing work of a kind ordinarily performed under a contract of service or apprenticeship with the insured provided that such work is under the authority and control of the insured d) any person who is engaged under a Government or otherwise authorised work experience, training, study, exchange or similar scheme e) any regular voluntary worker.

Cover The Company will indemnify the insured against all amounts which the insured shall become legally liable to pay as damages in respect of accidental bodily injury to any employee if such injury arises out of and in the course of his employment by the insured in the business and occurring during the period of insurance within the territorial limits.

Additional cover The cover under this section is extended to include the following 1

Legal costs and solicitors’ fees The Company will pay in addition to the indemnity provided a) all legal costs recoverable from the insured by any claimant b) any other costs and expenses of litigation incurred with the Company’s written consent c) solicitors’ and counsels’ fees for legal representation at any coroner’s inquest or fatal accident enquiry.

2

Health and Safety at Work etc. Act 1974 The Company will indemnify the insured and at the request of the insured any director, partner or employee of the insured against legal costs and expenses incurred, with the Company's written consent, in the defence of any criminal proceedings brought in respect of a breach of the Health and Safety at Work etc. Act 1974 committed or alleged to have been committed during the period of insurance, including legal costs and expenses incurred with the written consent of the Company in an appeal against conviction arising from such proceedings. The Company will not be liable for a) fines and penalties of any kind b) legal costs and expenses where an indemnity is provided by any other insurance c) proceedings arising out of any deliberate act or omission by the insured d) more than £10,000 in any one period of insurance.

Limits of liability The Company’s liability in respect of a) accidental bodily injury to employees b) all legal costs recoverable from the insured by any claimant c) any other costs and expenses of litigation incurred with the Company’s written consent d) solicitors’ and counsels’ fees for legal representation at any coroner’s inquest or fatal accident inquiry e) the costs incurred, with the Company’s written consent, for defending in a Court of Summary Jurisdiction any proceedings arising out of any alleged breach of statutory duty in respect of any cause which may be the subject of indemnity under this section of the policy which arises out of and in the course of employment in the business shall not exceed i) £5,000,000 as regards bodily injury which is directly or indirectly caused by, contributed to by, results from or arises out of or in connection with any act of terrorism or any action taken in controlling, preventing, suppressing, retaliating against, responding to or in any way relating to any act of terrorism ii) £10,000,000 as regards any other bodily injury in respect of any one claim against the insured or series of claims against the insured arising out of one cause.

13

Special exclusions The Company will not be liable under this section in respect of 1 liability arising from and or caused by any processes or work in connection with offshore installations for the purposes of this special exclusion only a) offshore installation means any platform or rig or any aircraft or vessel servicing a platform or rig b) it is understood that any person is deemed to be “offshore” as from the time when they embark onto a conveyance at the point of final departure to an offshore installation and that any person shall continue to be deemed to be “offshore” until such time as they disembark from a conveyance onto land upon their return from an offshore installation 2 damages for bodily injury unless the action is brought against the insured in a Court of Law within the territorial limits.

Special conditions 1

2 3

14

The indemnity granted includes protection to the insured as required by any law relating to compulsory insurance of the employer’s legal liability to his employees whilst employed in Great Britain, Northern Ireland, the Isle of Man or the Channel Islands but the insured shall repay to the Company all sums paid by the Company which the Company would not have been liable to pay but for the provisions of such law. If the policy or this section is cancelled then any Certificate of Employers’ Liability Insurance issued by the Company is deemed to be cancelled at the same time. The Company may at any time pay to the insured the amount of the Limit of liability less any amount already paid, or any lesser amount for which any claim or claims can be settled, and shall then cease to have the conduct and control of the negotiations, actions or proceedings and be under no further liability in respect of such claim or claims except for costs and expenses incurred prior to the date of such payment.

Section 3 - Group Equipment This section is applicable only if a Sum Insured is shown for Section 3 in the schedule

Cover The Company will indemnify the insured in respect of loss, destruction or damage to Group equipment in the premises or to fixed Group equipment in the open around the premises caused by the following perils 1

2 3

4 5

6

7

8 9 10

11

12 13 14

fire (whether resulting from explosion or otherwise) not occasioned by or happening through a) its own spontaneous fermentation or heating b) earthquake or subterranean fire lightning explosion but excluding loss, destruction or damage (other than loss, destruction or damage by fire resulting from explosion) a) caused by or consisting of the bursting of a boiler (not being a boiler used for domestic purposes only) economiser or other vessel, machine or apparatus in which internal pressure is due to steam only and belonging to or under the control of the insured b) in respect of and originating in any vessel machinery or apparatus or its contents, belonging to or under the control of the insured which requires to be examined to comply with any statutory regulations unless such vessel, machinery or apparatus shall be the subject of a policy or other contract providing the required inspection service aircraft and other aerospatial devices or articles dropped therefrom theft or any attempt thereat involving a) forcible and violent entry to or exit from the premises b) assault or violence or threat thereof to the insured or any of his employees but excluding loss, destruction or damage to property in the open riot, civil commotion, strikers, locked-out workers or persons taking part in labour disturbances or malicious persons acting on behalf of or in connection with any political organisation but excluding loss, destruction or damage caused in Northern Ireland or resulting from cessation of work malicious persons not acting on behalf of or in connection with any political organisation but excluding loss, destruction or damage a) by theft or any attempt thereat b) to property in the open earthquake or subterranean fire impact by any mechanically propelled vehicle (whether the vehicle be licensed for normal road use or not) or by goods falling therefrom but excluding loss or destruction of or damage to property in transit storm but excluding loss, destruction or damage a) caused by i) the escape of water from the normal confines of any natural or artificial watercourse, lake, reservoir, canal or dam ii) inundation from the sea, whether resulting from storm or otherwise iii) frost, subsidence, ground heave or landslip b) attributable solely to change in the water table level c) to property in the open flood but excluding loss, destruction or damage a) caused by frost, subsidence, ground heave or landslip b) attributable solely to change in the water table level c) to property in the open sudden escape of water from any fixed water installation, tank, apparatus or pipes sudden escape of oil from any fixed installation falling trees or branches but excluding loss, destruction or damage a) caused by felling or lopping carried out by or on behalf of the insured b) to loose or moveable property in the open.

Additional cover The cover under this section is extended to include the following 1

Debris removal The costs and expenses necessarily and reasonably incurred in the removal of debris following loss, destruction or damage to Group equipment caused by any peril hereby insured against, subject to the adequacy of the sum insured. Provided that the Company will not be liable for any such costs or expenses a) incurred in removing debris except from the site of such insured property so lost, destroyed or damaged and from the area immediately adjacent to such site b) arising from pollution or contamination or property not insured by this section.

2

External CCTV equipment and security lighting This section extends to include loss, destruction or damage to external CCTV equipment and security lighting at the premises, for which the insured is legally responsible, provided that such property is located and fixed in an inaccessible position. The Company’s liability will not exceed £1,000 in any one period of insurance.

3

Extinguishment expenses The cost of refilling fire extinguishing equipment used solely as a consequence of loss, destruction or damage caused by any peril hereby insured against, provided the insured is responsible for the cost.

15

4

Fixed outside equipment Damage to fixtures (including fixed play equipment) in the garden(s) of the premises by any peril hereby insured against other than by perils 10 or 11. Theft cover subject to there being forcible and violent entry to or exit from the perimeter fencing or gates. The Company’s liability will not exceed £2,500 in any one period of insurance.

5

Loss of metered water This section extends to include the cost of loss of metered water for which the insured is legally responsible arising from loss, destruction or damage at the premises caused by any peril hereby insured against. The Company’s liability will not exceed £2,500 in any one period of insurance.

6

Sanitary ware and underground service pipes or cables This section extends to include the cost of reinstatement or repair for which the insured is legally liable following accidental damage to a) fixed sanitary ware and fittings b) underground service pipes or cables extending from the public mains to the premises or the buildings. The Company's liability will not exceed £1,000 in any one period of insurance.

7

Sheds The insurance by this section is extended to include: a) the structure of any timber or metal sheds at the premises that are used for storage up to } i) £1,500 in the aggregate for timber sheds or such other } ii) £2,500 in the aggregate for metal sheds amounts as stated } iii) maximum £2,500 in the aggregate overall in the schedule b) the contents of any timber or metal sheds at the premises up to } or such other i) £1,500 in the aggregate in timber sheds } amounts as stated ii) £2,500 in the aggregate in metal sheds } in the schedule iii) maximum £2,500 in the aggregate overall subject to the adequacy of the sum insured

8

Temporary removal Group equipment (other than stock) is covered for the perils insured while temporarily removed for cleaning renovation repair or other similar purposes elsewhere on the same premises or to any other premises and in transit thereto and therefrom in Great Britain, Northern Ireland, the Isle of Man or the Channel Islands but the amount recoverable hereunder shall not exceed 10% of the sum insured after deducting the value of any stock insured.

9

Theft damage to the premises Damage to the premises resulting from theft or any attempt thereat involving forcible and violent entry thereto or exit therefrom. Provided that the insured is responsible for the repair of such damage.

10

Theft of keys The cost of replacing locks or keys to the premises or any safe or strongroom therein resulting from loss of keys following their theft a) involving forcible and violent entry to the premises or the home of the insured or any authorised employee b) by hold up involving assault or violence or threat thereof whilst such keys are in the personal custody of the insured or any authorised employee. Provided that the Company will not be liable for the cost of replacing locks or keys of any safe or strongroom following theft of the keys if they are left on the premises outside business hours. The Company’s liability will not exceed £1,000 in any one period of insurance.

Limit of liability The Company’s liability in respect of any one occurrence will not exceed the sum insured by this section.

Sum insured As shown in the schedule, subject to General Condition 15 - Underinsurance.

Basis of claims settlement Following loss, destruction or damage insured by this section and subject to the adequacy of the sums insured and to the limits of liability the Company will pay in respect of a) stock - the cost price of replacing the goods at the time of the loss, destruction or damage b) deeds, documents and business books - their value as stationery only together with the cost of clerical labour expended in writing up and not for the value to the insured of the information contained therein c) computer systems records - the value of the materials only together with the cost of clerical labour and computer time expended in reproducing such records (excluding any expense in connection with the production of information to be recorded therein) and not for the value to the insured of the information contained therein, for an amount not exceeding 5% of the sum insured on Group equipment d) patterns, models, moulds, plans and designs - the value of the materials only together with the cost of labour expended in reinstatement of such property e) all other property - the cost of repairing or reinstating the property equal to its condition when new Provided that i) this is carried out without delay and in the most economical manner ii) when property is partially lost, destroyed or damaged the Company’s liability shall not exceed the estimated reinstatement cost which would have been payable had it been wholly lost or destroyed iii) until reinstatement has been carried out no payment shall be made beyond the amount which would be payable if an allowance were made for wear, tear or depreciation

16

iv)

v)

for the purpose of this sub-paragraph General Condition 15 - Underinsurance shall be deemed to read whenever a sum insured is declared to be subject to this underinsurance condition, if at the time of repair or reinstatement the amount representing the cost which would have been incurred in repair or reinstatement if the whole of the property insured by any item insured hereby had been lost or destroyed exceeds the sum insured by such item at the commencement of the loss, destruction or damage, then the insured shall be considered as being his own insurer for the difference and shall bear a rateable proportion of the loss where for any reason no payment is to be made on the basis of repair or reinstatement as new (liability being otherwise admitted) then the liability of the Company will be arrived at as if this basis of claims settlement had not been incorporated herein and sub-paragraph e) shall then be deemed to read all other property - the cost of repair or replacement at the time of the loss, destruction or damage after due allowance of wear, tear or depreciation.

Special exclusions The Company will not be liable under this section for 1 the first £100 of each claim after the application of the underinsurance condition 2 loss, destruction or damage caused by other authorised users of the premises 3 loss, destruction or damage occurring outside business hours unless the Group equipment is stored in a securely locked hall, room or cupboard at the premises 4 loss, destruction or damage to Group equipment stored in any outbuilding unless advised to and agreed in writing by Morton Michel 5 loss, destruction or damage to Group equipment stored in any outbuilding or basement caused by storm, flood, sudden escape of water from any fixed water installation, tank, apparatus or pipes, unless such property is raised at least a) 100mm above the ground floor level of the outbuilding b) 300mm above the floor level of the basement 6 loss of metered water except where such loss is caused by any peril hereby insured against 7 consequential loss of any kind or description

Special condition In the event of a claim under this section, the Company may impose a deductible during the term of any period of insurance until any required risk improvements have been implemented.

Additional clauses (a)

Non-invalidation The insurance by this section, other than loss, destruction or damage by theft or any attempt thereat, shall not be invalidated by any act or omission or by any alteration whereby the risk of loss, destruction or damage is increased, unknown to or beyond the control of the insured, providing that the insured, immediately they become aware thereof, shall given notice to the Company and pay an additional premium if required.

(b)

Workmen Workmen are allowed in all or any of the buildings for the purpose of effecting minor alterations, repairs, decorations and maintenance without prejudice to this insurance.

17

Section 4 - Group Money This section is applicable only if a Limit is shown for Section 4 in the schedule

Cover The Company will indemnify the insured against physical loss of money pertaining to the business and belonging to the insured occurring within the territorial limits.

Limits of liability The Company’s liability will not exceed the limits stated below (or such other amounts stated in the schedule) in respect of any one occurrence. Item Money whilst 1 in transit in the personal custody of any authorised Group official or whilst contained in a bank night safe 2 on the premises during business hours 3 in the home of any authorised Group official 4 on the premises outside business hours contained in locked safes

Limit

£500 £500 £500 £250

Special exclusions The Company will not be liable under this section for 1 the first £50 of each claim 2 loss from any unattended vehicle 3 any loss due to the fraud or dishonesty of any Group official unless such loss is discovered within seven working days of the date of its occurrence 4 clerical or accounting errors or shortages due to error or omission 5 loss caused by dishonoured cheques or by the use of counterfeit money 6 consequential loss of any kind or description Special conditions 1 A true and complete account must be kept of all money in transit and on the premises and such record must be deposited in a secure place other than in any safe containing the money. 2 During business hours any safe must be kept locked other than when money or other property is being placed therein or removed therefrom and the keys kept in the personal custody of the insured or any authorised Group official. 3 Money on the premises during business hours must be kept in a locked safe or locked desk or locked filing cabinet. 4 One copy of each completed credit card voucher must at all times be kept in a secure place separate from its counterpart.

18

Special extension - Personal Assault Definitions and interpretation For the purpose of this extension only insured person means any Group official aged between 16 to 70 years loss of limb means total loss by physical severance of one or more limbs at or above the wrist or ankle or permanent and total loss of use of any entire limb loss of sight means total and irrecoverable loss of sight in one or both eyes permanent total disablement means permanent and absolute disablement from engaging in or giving attention to occupation or business of any kind temporary total disablement means temporary and absolute disablement from engaging in or giving attention to usual occupation.

Cover The Company will pay as compensation to the insured or the legal personal representative of the insured the relevant amount shown below if in the course of the business an insured person sustains accidental bodily injury consequent upon robbery or hold up or any attempt thereat occurring within the territorial limits and such bodily injury directly and independently of any other cause results within twelve months in death loss or disablement as stated in the Results.

Results 1 2 3 4 5

Death Loss of limb Loss of sight Permanent total disablement Temporary total disablement

Compensation £20,000 £20,000 £20,000 £20,000 £50 per week

Special exclusions The Company will not be liable under this Special extension for death loss or disablement caused by 1 an insured person being under the influence of or being affected by intoxicating liquor or drugs except drugs taken in accordance with proper medical prescription and directions and not for the treatment of drug addiction 2 pregnancy or childbirth 3 any communicable disease.

Special conditions 1 2

3 4

Compensation shall not be payable for more than one of Results 1-4 in respect of any one insured person. Compensation shall not be payable for Result 5 a) until the end of the period of disablement but the Company may at its discretion make interim payments b) for more than 104 weeks from the date of sustaining injury in respect of any one bodily injury. The total amount payable as compensation under Result 5 shall be deducted from any subsequent compensation payment under Results 1-4 that follows from the same cause. An insured person shall as often as required submit to a medical examination on behalf of the Company at its own expense and in the case of death the Company shall be entitled to have a post mortem examination at its own expense.

19

Section 5 - Personal Accident for Children at the Group This section is applicable only if Compensation is shown for Section 5 in the schedule

Definitions and interpretation For the purpose of this section only insured person means any child attending the Group loss of limb means total loss by physical severance of one or more limbs at or above the wrist or ankle or total and permanent loss of use of any entire limb loss of sight means total and irrecoverable loss of sight in one or both eyes operative time means any time whilst engaged in organised and supervised Group activities permanent total disablement means permanent and absolute disablement from engaging in or giving attention to occupation or business of any kind.

Cover The Company will pay as compensation to the insured or the legal personal representative of the insured the relevant amount shown below if an insured person sustains accidental bodily injury caused solely and directly by violent external and visible means during the operative time in any period of insurance and such bodily injury directly and independently of any other cause results within twelve months in death loss or disablement as stated in the Results Results 1 2 3 4

Compensation Death Loss of limb Loss of sight Permanent total disablement

£ 5,000 £20,000 £20,000 £20,000

Special exclusions The Company will not be liable under this section for death loss or disablement caused by 1 insanity, intentional self-injury, suicide or attempted suicide of the insured person, participation in any criminal act or civil commotion, or by an insured person being under the influence of or being affected by intoxicating liquor or drugs except drugs taken in accordance with proper medical prescription and directions and not for the treatment of drug addition 2 an insured person engaging in abseiling, activities necessitating the use of underwater breathing equipment, armed or unarmed combat sports, bungee jumping, climbing necessitating the use of ropes or guides, flying of any kind (other than as a passenger in a fully licensed passenger carrying aircraft), hunting, ice hockey, motor cycling other than by power assisted pedal cycle, parachuting, polo, pot holing or similar underground activities, professional sport, riding or diving in any kind of race, speed or duration test or practise therefor or winter sports 3 pregnancy or childbirth 4 any communicable disease.

Special conditions 1 2 3

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Compensation shall not be payable for more than one of Results 1-4 in respect of any one insured person. Compensation shall not be payable for Result 4 until after the expiry of 104 weeks from the date of the injury. An insured person shall as often as required submit to a medical examination on behalf of the Company at its own expense and in the case of death the Company shall be entitled to have a post mortem examination at its own expense.

Section 6 - Personal Accident for Adults at the Group This section is applicable only if Compensation is shown for Section 6 in the schedule

Definitions and interpretation For the purpose of this section only insured person means any Group official or person attending the Group aged between 16 to 70 years loss of limb means total loss by physical severance of one or more limbs at or above the wrist or ankle or total and permanent loss of use of any entire limb loss of sight means total and irrecoverable loss of sight in one or both eyes operative time means any time whilst engaged in organised and supervised Group activities permanent total disablement means permanent and absolute disablement from engaging in or giving attention to occupation or business of any kind temporary total disablement means temporary and absolute disablement from engaging in or giving attention to usual occupation.

Cover The Company will pay as compensation to the insured or the legal personal representative of the insured the relevant amount shown below if an insured person sustains accidental bodily injury caused solely and directly by violent external and visible means during the operative time in any period of insurance and such bodily injury directly and independently of any other cause results within twelve months in death loss or disablement as stated in the Results Results 1 2 3 4 5

Compensation Death Loss of limb Loss of sight Permanent total disablement Temporary total disablement

£20,000 £20,000 £20,000 £20,000 £50 per week

Special exclusions The Company will not be liable under this section for death loss or disablement caused by 1 insanity, intentional self-injury, suicide or attempted suicide of the insured person, participation in any criminal act or civil commotion, or by an insured person being under the influence of or being affected by intoxicating liquor or drugs except drugs taken in accordance with proper medical prescription and directions and not for the treatment of drug addiction 2 an insured person engaging in abseiling, activities necessitating the use of underwater breathing equipment, armed or unarmed combat sports, bungee jumping, climbing necessitating the use of ropes or guides, flying of any kind (other than as a passenger in a fully licensed passenger carrying aircraft), hunting, ice hockey, motor cycling other than by power assisted pedal cycle, parachuting, polo, pot holing or similar underground activities, professional sport, riding or driving in any kind of race, speed or duration test or practise therefor or winter sports 3 pregnancy or childbirth 4 any communicable disease.

Special conditions 1 2 3

4 5

Compensation shall not be payable for more than one of Results 1-4 in respect of any one insured person. Compensation shall not be payable for Result 4 until after the expiry of 104 weeks from the date of the injury. Compensation shall not be payable for Result 5 a) until the end of the period of disablement but the Company will on request make interim payments at intervals of not less than four weeks b) for more than 104 weeks from the date of sustaining injury in respect of any one bodily injury. The total amount payable as compensation under Result 5 shall be deducted from any subsequent compensation payment under Results 1-4 that follows from the same cause. An insured person shall as often as required submit to a medical examination on behalf of the Company at its own expense and in the case of death the Company shall be entitled to have a post mortem examination at its own expense.

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Section 7 - Buildings This section applies only if a Sum Insured is shown for Section 7 in the schedule

Sub-section A Cover The Company will indemnify the insured in respect of loss, destruction or damage to the buildings caused by the following perils 1 fire (whether resulting from explosion or otherwise) not occasioned by or happening through a) its own spontaneous fermentation or heating b) earthquake or subterranean fire 2 lightning 3 explosion but excluding loss, destruction or damage (other than loss, destruction or damage by fire resulting from explosion) a) caused by or consisting of the bursting of a boiler (not being a boiler used for domestic purposes only) economiser or other vessel, machine or apparatus in which internal pressure is due to steam only and belonging to or under the control of the insured b) in respect of and originating in any vessel machinery or apparatus or its contents, belonging to or under the control of the insured which requires to be examined to comply with any statutory regulations unless such vessel, machinery or apparatus shall be the subject of a policy or other contract providing the required inspection service 4 aircraft and other aerospatial devices or articles dropped therefrom 5 theft or any attempt thereat involving forcible and violent entry to or exit from the buildings 6 riot, civil commotion, strikers, locked-out workers or persons taking part in labour disturbances or malicious persons acting on behalf of or in connection with any political organisation but excluding loss, destruction or damage caused in Northern Ireland or resulting from cessation of work 7 malicious persons not acting on behalf of or in connection with any political organisation but excluding loss, destruction or damage by theft or any attempt thereat 8 earthquake or subterranean fire 9 impact by any mechanically propelled vehicle (whether the vehicle be licensed for normal road use or not) or by goods falling therefrom 10 storm but excluding loss, destruction or damage a) caused by i) the escape of water from the normal confines of any natural or artificial watercourse, lake, reservoir, canal or dam ii) inundation from the sea, whether resulting from storm or otherwise iii) frost, subsidence, ground heave or landslip b) attributable solely to change in the water table level 11 flood but excluding loss, destruction or damage a) caused by frost, subsidence, ground heave or landslip b) attributable solely to change in the water table level 12 sudden escape of water from any fixed water installation, tank, apparatus or pipes 13 sudden escape of oil from any fixed installation 14 falling trees or branches but excluding loss, destruction or damage caused by felling or lopping carried out by or on behalf of the insured.

Additional cover The cover under this sub-section is extended to include the following 1

Architects' and surveyors' fees and other costs Within the overall limit of the sum insured on buildings the Company will pay the cost of architects', surveyors', consulting engineers' legal and other fees necessarily and reasonably incurred in the reinstatement or repair of the buildings following loss, destruction or damage caused by any peril hereby insured against but excluding fees charged for the preparation of any claim.

2

Debris removal costs The costs and expenses necessarily incurred by the insured with the consent of the Company in i) removing debris ii) dismantling or demolishing iii) shoring up or propping of the portion or portions of the buildings destroyed or damaged by any peril hereby insured against. Provided that the Company will not be liable under this clause for any such costs or expenses a) incurred in removing debris except from the site of such buildings so destroyed or damaged and from the area immediately adjacent to such site b) arising from pollution or contamination of property not insured by this section.

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3

Public authorities costs Within the overall limit of the sum insured on buildings and following loss, destruction or damage caused by any peril hereby insured against, the Company will pay the additional cost of reinstatement necessarily and reasonably incurred to comply with statutory building regulations or municipal or local bye-laws in respect of any destroyed or damaged part of the buildings provided that notice under such building regulation or bye-law had not been served on the insured before such destruction or damage had occurred.

4

Sanitary ware and underground pipes and cables The cost of reinstatement or repair following accidental damage to a) fixed sanitary ware and fittings b) underground water or gas pipes or electricity or telephone cables extending from the public mains to the buildings Provided that the insured is responsible as owner for such reinstatement or repair.

Limit of liability The Company's liability in respect of any one occurrence will not exceed the sum insured by this section.

Sum Insured As shown in the schedule, subject to General Condition 15 - Underinsurance.

Basis of claims settlement Following loss, destruction or damage insured by this section and subject to the adequacy of the sum insured and the limit of liability the Company will pay the cost of repairing or reinstating the buildings equal to their condition when new provided that a) this is carried out without delay and in the most economical manner b) when buildings are partially destroyed or damaged the Company's liability shall not exceed the estimated reinstatement cost which would have been payable had they been wholly destroyed c) until reinstatement has been carried out no payment shall be made beyond the amount which would be payable if an allowance were made for wear, tear or depreciation d) for the purpose of this sub-paragraph General Condition 15 - Underinsurance shall be deemed to read whenever a sum insured is declared to be subject to this underinsurance condition, if at the time of repair or reinstatement the amount representing the cost which would have been incurred in repair or reinstatement if the whole of the buildings had been destroyed exceeds the sum insured on buildings at the time of the loss, destruction or damage, then the insured shall be considered as being his own insurer for the difference and shall bear a rateable proportion of the loss e) where for any reason no payment is to be made on the basis of repair or reinstatement as new (liability being otherwise admitted) then the liability of the Company will be arrived at as if this basis of claims settlement had not been incorporated herein and the basis of claims settlement shall then be deemed to read following loss, destruction or damage insured by this section and subject to the adequacy of the sum insured and the limit of liability the Company will pay the value of the buildings at the time of the loss, destruction or damage, or the amount of such loss, destruction or damage as the case may be, after due allowance for wear, tear, depreciation or at its option replace, reinstate or repair the lost, destroyed or damaged property.

Special exclusions The Company will not be liable under this sub-section for 1 the first £200 of each claim (or such other deductible as stated in the schedule) after the application of the underinsurance condition 2 breakage of or damage to glass or lettering or designs superimposed thereon 3 loss or destruction of or damage to fences and gates

Additional clauses (a)

Contracting purchaser If at the time of loss, destruction or damage to the buildings the insured shall have contracted to sell his interest in such buildings and the purchase shall not have been but shall be thereafter completed, the purchaser on the completion of the purchase if and so far as the buildings are not otherwise insured by or on behalf of the purchaser against such loss, destruction or damage shall be entitled to the benefit of this policy so far as it relates to such loss, destruction or damage without prejudice to the rights and liabilities of the insured or the Company under this policy up to the date of completion.

(b)

Non-invalidation The insurance by this section, other than loss, destruction or damage by theft or any attempt thereat, shall not be invalidated by any act or omission or by any alteration whereby the risk of loss, destruction or damage is increased, unknown to or beyond the control of the insured, providing that the insured, immediately they become aware thereof, shall give notice to the Company and pay an additional premium if required.

(c)

Workmen Workmen are allowed in all or any of the buildings for the purpose of effecting minor alterations, repairs, decorations and maintenance without prejudice to this insurance.

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Sub-section B - Glass Cover The Company will indemnify the insured in respect of breakage of or damage to fixed plain plate or sheet or wired glass in the buildings, together with the cost of temporary boarding up pending replacement and the cost of repairing window and door frames, provided that the insured is responsible as owner.

Special exclusions The Company will not be liable under this sub-section for 1 the first £50 of each claim 2 glass which was broken or cracked before the insurance commenced 3 superficial scratching, chipping or cracking 4 breakage caused during installation or removal or whilst alterations or repairs are being effected to the buildings 5 breakage of armoured, bent or other special glass or lettering or designs superimposed on glass.

Sub-section C - Legal Liability Definitions and interpretation For the purpose of this sub-section only act of terrorism means an activity that (a) involves a violent act or the unlawful use of force or an unlawful act dangerous to human life, tangible or intangible property or infrastructure, or a threat thereof; and (b) appears to be intended to (i) intimidate or coerce a civilian population, or (ii) disrupt any segment of the economy of a government de jure or de facto, state or country, or (iii) overthrow, influence, or affect the conduct or policy of any government de jure or de facto by intimidation or coercion, or (iv) affect the conduct of a government de jure or de facto by mass destruction, assassination, kidnapping or hostagetaking asbestos means asbestos, asbestos fibres, any derivatives of asbestos and any product containing asbestos, asbestos fibres or any derivatives of asbestos

Cover The Company will indemnify the insured as owner of the buildings against all amounts which the insured shall become legally liable to pay as damages in respect of a) accidental bodily injury to any person b) accidental loss of or damage to property not belonging to or in the custody of or under the control of the insured or any director, partner or employee of the insured other than i) personal effects of directors, partners or employees ii) the property of customers or visitors temporarily on or about the premises, but excluding all property undergoing or awaiting repair, testing, servicing, maintenance, alteration, cleaning or inspection arising from i) any defect in or about the buildings ii) breakage or collapse of television or radio aerials, aerial fittings or masts or satellite receiving equipment iii) alteration, decoration or repair being effected to the buildings.

Limit of liability The Company's liability in respect of damages for all claims arising out of one cause shall not exceed £1,000,000 (or such other amount stated in the schedule). The Company will also pay all legal costs recoverable from the insured by any claimant and any other costs and expenses of litigation incurred with the Company's written consent.

Special exclusions The Company will not be liable under this sub-section in respect of liability 1 liability for bodily injury to any employee arising out of and in the course of their employment by the insured in the business 2 which attaches solely under the terms of any contract or agreement if such liability would not have attached in the absence of such contract or agreement 3 arising from a) any lift, elevator, hoist, crane, steam boiler or other apparatus operating under steam pressure, for which a statutory inspection certificate is required but which is not in force b) destruction of or damage to property buildings or land caused by vibration or by the removal or weakening of support c) any mechanically propelled vehicle or plant or trailer attached thereto in circumstances in respect of which insurance or security is necessary to meet the requirements of road traffic legislation 4 liability arising, directly or indirectly, out of exposure to inhalation of, or fears of the consequences of exposure to, or inhalation of, asbestos 5 the cost of cleaning up, or removal of, or damage to property arising out of any asbestos 6 liability at law for loss, damage, cost or expense of whatsoever nature directly or indirectly arising out of, contributed by, caused by, resulting from, or in connection with any of the following, or any action taken in controlling, preventing, suppressing, retaliating against or responding to any of the following, regardless of any other cause or event contributing concurrently or in any other sequence of the loss: a) war, invasion, acts of foreign enemies, hostilities or warlike operations (whether war be declared or not), civil war, mutiny, revolution, rebellion, insurrection, uprising, military or usurped power, confiscation by order of any public authority or government de jure or de facto or martial law; or b) riots, strikes, or civil commotion; or c) any acts of terrorism If the Company alleges that by reason of this exclusion any actual or alleged losses, liabilities, damages, injuries, defence costs, costs or expenses is not covered by this sub-section the burden of proving the contrary shall be upon the insured 7 damages for bodily injury or loss or destruction of or damage to property unless the action is brought against the insured in a Court of Law in Great Britain, Northern Ireland, the Isle of Man or the Channel Islands.

24

Special condition The Company may at any time pay to the insured the amount of the Limit of liability less any amount already paid, or any lesser amount for which any claim or claims can be settled, and shall then cease to have the conduct and control of the negotiations, actions or proceedings and be under no further liability in respect of such claim or claims except for costs and expenses incurred prior to the date of such payment.

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Section 8 - All Risks This section applies only if a Sum Insured is shown for Section 8 in the schedule

Definition and interpretation For the purpose of this section only property means those items pertaining to the business and described in the schedule all belonging to the insured or for which the insured is responsible.

Cover The Company will indemnify the insured in respect of loss, destruction or damage to the property insured described in the schedule caused by any accident or misfortune occurring within the territorial limits.

Limits of liability The Company's liability in respect of any one occurrence will not exceed the sum insured against each item in the schedule nor in all the aggregation of the sums insured by this section.

Basis of claims settlement Following loss, destruction or damage insured by this section and subject to the adequacy of the sums insured and to the Limits of liability the Company will pay the cost of repairing or replacing the property equal to its condition when new provided that a) this is carried out without delay and in the most economical manner b) when property is partially lost, destroyed or damaged the Company's liability shall not exceed the estimated replacement cost which would have been payable had it been wholly lost or destroyed c) until replacement has been carried out no payment shall be made beyond the amount which would be payable if an allowance were made for wear, tear or depreciation d) for the purposes of this sub-paragraph General Condition 15 Underinsurance shall be deemed to read whenever a sum insured is declared to be subject to this underinsurance condition, if at the time of repair or replacement the amount representing the cost which would have been incurred in repair or replacement if the whole of the property insured by any item insured hereby had been lost or destroyed exceeds the sum insured by such item at the time of the loss, destruction or damage, then the insured shall be considered as being his own insurer for the difference and shall bear a rateable proportion of the loss e) where for any reason no payment is to be made on the basis of repair or replacement as new (liability being otherwise admitted) then the liability of the Company will be arrived at as if this basis of claims settlement had not been incorporated herein and the basis of claims settlement shall then be deemed to read following loss, destruction or damage insured by this section and subject to the adequacy of the sums insured and to the Limits of liability the Company will pay the cost of repair or replacement of the property at the time of the loss, destruction or damage after due allowance for wear, tear or depreciation.

Special exclusions The Company will not be liable under this section for 1 the first £100 of each claim after the application of the underinsurance condition 2 loss, destruction or damage caused by a) wear, tear or depreciation or diminution in value b) inherent vice, latent defect, faulty workmanship, defective design, plan or specification or the use of faulty materials c) marring, scratching, denting, mechanical or electrical defect, failure, breakdown or derangement d) atmospheric or climatic conditions or any other gradually operating cause, rot, fungus, rust, corrosion, woodworm, moths, insects, vermin or pests e) any process involving heating, drying, cleaning, dyeing, staining, repairing, restoring, renovating, fitting, alteration or maintenance of any property f) use of any article contrary to manufacturer's instructions g) storm or flood unless the property is contained in an enclosed vehicle or in a building 3 loss, destruction or damage by theft or attempted theft from any unattended vehicle 4 breakage of brittle articles unless forming part of photographic equipment 5 consequential loss of any kind or description.

Underinsurance The sum insured against each item in the schedule is separately subject to General Condition 15 Underinsurance.

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Section 9 - Trustees' and Officers' Financial Liability This section applies only if a sum insured is shown for Section 9 in the schedule

Cover The Company will indemnify any properly elected trustee or officer of the insured against legal liability to pay or contribute towards the shortfall between the assets and liabilities of the insured in the event that the insured shall cease trading during the period of insurance through any cause outside the control of such trustee or officer.

Limit of liability The liability of the Company shall not exceed the sum insured by this section in respect of all claims by all trustees or officers of the insured.

Special exclusions The Company shall not be liable under this section in respect of a) the first £25 or 5% of each and every claim, whichever is the greater b) cessation of trading or shortfall caused by, or contributed to by, the fraud, embezzlement, misappropriation or other criminal act of any trustee or officer of the insured c) any shortfall resulting from dishonoured cheques, the use of counterfeit money, clerical or accounting errors or shortages due to error or omission d) losses arising from the closure of the group within the first six months from inception of this section.

Special condition 1

In the event of a possible claim under this section it is a condition precedent to liability that the insured shall give notice to the Company within thirty days of the cessation of trading by the insured and shall submit a claim in writing with all such particulars and proofs as may be reasonably required.

27

Section 10 - Loss of Revenue This section applies only if a Sum Insured is shown for Section 10 in the schedule.

Definitions and interpretation For the purpose of this section only damage means physical loss, destruction or damage by any of the perils insured by Section 3 gross revenue means the money paid or payable to the insured for work done and services rendered in the course of the business at the premises annual gross revenue means the gross revenue during the twelve months immediately before the date of the damage standard gross revenue means the gross revenue during that period in the twelve months immediately before the date of the damage which corresponds with the indemnity period

} } } } } }

to which such adjustments shall be made as may be necessary to provide for the trend of the business and for variations in or other circumstances affecting the business either before or after the damage which would have affected the business had the damage not occurred, so that the figures thus adjusted shall represent as nearly as may be reasonably practicable the results which but for the damage would have been obtained during the relative period after the damage

indemnity period means the period beginning with the occurrence of the damage and ending not later than the maximum indemnity period thereafter during which the results of the business shall be affected in consequence of such damage maximum indemnity period means twelve months or such other period as is stated in the schedule outstanding debit balances means the individual amounts owed to the insured by customers and shown as outstanding in the insured’s records Notes: 1 2

To the extent that the insured is accountable to the tax authorities for Value Added Tax, all terms in this section shall be exclusive of such tax. For the purpose of these definitions, any adjustment implemented in current cost accounting shall be disregarded.

Cover In the event of damage to any building or other property or any part thereof used by the insured at the premises for the purpose of the business or to any of the insured’s records of outstanding debit balances contained within the premises, the Company will by payment indemnify the insured in respect of a) any loss of gross revenue or additional expenditure incurred as a result of the business at the premises being interrupted or interfered with in consequence of such damage provided that at the time of the happening of the damage there shall be in force an insurance covering the interest of the insured in the property at the premises against such damage and that payment shall have been made or liability admitted therefor under such insurance b) any net outstanding debit balances which the insured is unable to recover from customers during the indemnity period as a result of damage to such records and any additional expenditure incurred after such damage in tracing and establishing outstanding debit balances c) professional accountants’ charges incurred in accordance with the basis of claims settlement.

Additional cover A Loss as insured by this section resulting from interruption of or interference with the business in consequence of 1 damage to property in the vicinity of the premises which prevents or hinders the use of or prevents access to the premises but excluding damage to property of any public utility from which the insured obtains supplies or services 2 damage to property at any i) generating station or sub-station of the public electricity supply undertaking ii) land based premises of the public gas supply undertaking or of any natural gas producer linked directly therewith iii) land based premises of the public telecommunications undertaking iv) waterworks or pumping station of the public water supply undertaking within the territorial limits from which the insured obtains electricity, gas or water supplies or telecommunication services 3 accidental failure of public supplies of electricity, gas or water at the terminal ends of the public supply undertaking’s feed to the premises except i) in consequence of a deliberate act of any supply authority or the exercise by any such authority of its power to withdraw or restrict supply ii) where such failure is for a period of less than sixty minutes iii) in consequence of a fault in any part of the installation belonging to the insured 4 damage to plans, deeds, briefs, manuscripts, books, documents and office records whilst temporarily removed from the premises to elsewhere within the territorial limits 5 the occurrence at the premises of murder or suicide 6 the occurrence at the premises of any outbreak of a human infectious or contagious disease 7 the compulsory closure of the premises by order of any competent authority due to its defective sanitation or to the presence therein of vermin or pests 8 poisoning arising from or traceable to foreign or deleterious matter in food or drink sold, supplied or provided at the premises shall be deemed to be loss resulting from damage at the premises to property used by the insured for the purpose of the business.

Additional cover B The indemnity by this section is extended to cover the cost of wages paid to temporary employees hired solely to replace members of staff who have been suspended in accordance with OFSTED regulations (or the regulations of any other registering authority) as a direct consequence of an accusation of child abuse. Provided that: a) the suspension shall be due solely to OFSTED regulations (or the regulations of any other registering authority) b) the suspension shall have followed a reported incident or allegation of child abuse c) the maximum amount payable for any one replacement employee shall be £200 per week or 75% of the weekly wages paid to the replacement employee, whichever is the less d) the maximum period of payment shall be 5 weeks in respect of any one suspended employee e) the liability of the Company under this Additional cover shall not exceed £2,500 in any one period of insurance.

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Limit of liability The Company’s liability in respect of loss of gross revenue or net outstanding debit balances and their associated additional expenditure and accountants’ charges shall not exceed in the aggregate in respect of any one occurrence nor in all in any one period of insurance the sum insured in the schedule.

Basis of claims settlement The Company’s liability shall not exceed a) the amount by which the gross revenue during the indemnity period shall fall short of the standard gross revenue in consequence of the damage less any amount saved during the indemnity period in respect of such of the charges and expenses of the business payable out of gross revenue as may cease or be reduced in consequence of the damage b) the additional expenditure necessarily and reasonably incurred in increase in cost of working for the sole purpose of avoiding or diminishing the reduction in gross revenue which but for that expenditure would have taken place during the indemnity period in consequence of the damage, but not exceeding the amount of reduction in gross revenue thereby avoided c) the amount by which the net outstanding debit balances traced and received after the damage and during the indemnity period falls short of the outstanding debit balances at the time of such damage provided that the Company’s liability shall not exceed £10,000 in respect of any one occurrence d) the reasonable charges payable to the insured’s professional accountant which may be incurred for producing and reporting on details required by the Company under the terms of General Condition 4.

Special conditions 1 2 3

The insurance by this section shall not apply if the business be wound up, permanently discontinued or carried on by a liquidator or receiver. At the end of each month the insured shall record the total amount outstanding in customers’ accounts and shall maintain a separate record, in addition to the books of account, in a place other than the premises. If at the time of any damage the sum insured on gross revenue be less than the gross revenue which it is estimated would have been earned during the maximum indemnity period had such damage not occurred, then the amount payable in respect of loss of gross revenue and associated additional expenditure shall be proportionately reduced.

Additional clauses (a)

Alternative trading If during the indemnity period work shall be done or services shall be rendered elsewhere than at the premises for the benefit of the business either by the insured or by others on his behalf the money paid or payable in respect of such work or services shall be brought into account in arriving at the gross revenue during the indemnity period.

(b)

New business For the purpose of any claim arising from damage occurring before the completion of the first year’s trading of the business at the premises, the terms “annual gross revenue” and “standard gross revenue” shall bear the following meanings and not as within stated annual gross revenue means the proportional equivalent for a period of twelve months, of the gross revenue realised during the period between the commencement of the business and the date of the damage standard gross revenue means the proportional equivalent, for a period equal to the indemnity period, of the gross revenue realised during the period between the commencement of the business and the date of the damage.

(c)

} } } } } } } } }

to which such adjustments shall be made as may be necessary to provide for the trend of the business and for variations in or other circumstances affecting the business either before or after the damage which would have affected the business had the damage not occurred, so that the figures thus adjusted shall represent as nearly as may be reasonably practicable the results which but for the damage would have been obtained during the relative period after the damage

Payments on account Payments on account may be made to the insured during the indemnity period at the discretion of the Company subject to any necessary adjustment at the termination of such period.

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Section 11 - Legal Expenses This is your Commercial Legal Expenses Section We agree to provide the insurance in this section as long as: (a) the date of occurrence of the insured incident happens during the period of insurance and within the territorial limit; and (b) any legal proceedings will be dealt with by a court, or other body which we agree to, in the territorial limit; and (c) in civil claims it is always more likely than not that an insured person will recover damages (or obtain any other legal remedy which we have agreed to) or make a successful defence. For all insured incidents, we will help in appealing or defending an appeal as long as the insured person tells us within the time limits allowed that they want us to appeal. Before we pay any costs and expenses for appeals, we must agree that it is always more likely than not that the appeal will be successful. If an appointed representative is used, we will pay the costs and expenses incurred for this. We will pay Compensation Awards that we have agreed to.

Limit of Liability The most we will pay for all claims resulting from one or more event arising at the same time or from the same originating cause is shown as the limit of indemnity in the policy schedule.

Definitions and interpretation for the purpose of this section only 1 2

3

4

5

6

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Insured person You and the directors, proprietors, employees or delegated voluntary helpers of the Nursery. Appointed representative The lawyer, accountant or other suitably qualified person, who has been appointed to act for an insured person in accordance with the terms of this section. Full enquiry An extensive examination by HM Revenue and Customs which considers all aspects of the insured’s tax affairs, excluding those enquiries which are limited to one or more specific aspects of the insured’s self assessment and/or corporation tax return. Aspect enquiry An examination by HM Revenue and Customs which considers one or more specific aspects of the insured’s self assessment and/or corporation tax return. Date of occurrence (1) For civil cases (other than under insured incident - 6 Tax Protection), the date of occurrence is when the cause of action first accrued. (2) For criminal cases, the date of occurrence is when the insured person commenced or is alleged to have commenced to violate the criminal law in question. (3) For full enquiries or aspect enquiries, the date of occurrence is when HM Revenue and Customs first notifies in writing the intention to make enquiries. For Employers’ Compliance and Value Added Tax disputes, the date of occurrence is when the relevant authority sends an assessment or written decision to the insured. Costs and expenses Legal costs All reasonable and necessary costs chargeable by the appointed representative on a standard basis. Also the costs incurred by opponents in civil cases if an insured person has been ordered to pay them, or pays them with our agreement. Accountant’s costs A reasonable amount in respect of all costs reasonably incurred by the appointed representative. Attendance expenses The insured person’s salary or wages for the time that the insured person is off work to attend any arbitration, court or tribunal hearing at the request of the appointed representative or while attending jury service. We will pay for each half or whole day that the court, tribunal or the insured person’s employer will not pay for. The amount we will pay is based on the following: * the time the insured person is off work including the time it takes to travel to and from the hearing. This will be calculated to the nearest half day assuming that a whole day is eight hours; * if the insured person works full time, the salary or wages for each whole day equals 1/250th of the insured person’s yearly salary or wages; * if the insured person works part-time, the salary or wages will be a proportion of the insured person’s weekly salary or wages.

COVER If an appointed representative is used, we will pay the costs and expenses incurred for this.

1

EMPLOYMENT DISPUTES AND COMPENSATION AWARDS

(a) Employment Disputes We will defend the insured’s legal rights: (1) prior to the issue of legal proceedings in a court or tribunal following the dismissal of an employee; or (2) in the resolution of unfair dismissal disputes under the ACAS Arbitration Scheme; or (3) in legal proceedings in respect of any dispute with (a) an employee or ex-employee or a trade union acting on behalf of an employee or ex-employee which arises out of, or relates to, a contract of employment with the insured; or (b) an employee, prospective employee or ex-employee arising from an alleged breach of their statutory rights under employment legislation. Special exclusions (1) Any claim in respect of damages for personal injury or loss of or damage to property. (2) Any claim arising from or relating to any transfer of business which falls within the scope of the Transfer of Undertakings (Protection of Employment) Regulations 1981 as amended by the Collective Redundancies and Transfer of Undertaking Regulations (Protection of Employment) (Amendment) Regulations 1999, or the Acquired Rights Directive 2001 and any amending legislation. (b) Compensation Awards We will pay: (1) any basic and compensatory award; and/or (2) an order for compensation following a breach of the insured’s statutory duties under employment legislation in respect of a claim we have accepted under insured incident 1(a). Provided that (1) In cases relating to performance and/or conduct, the insured has throughout the employment dispute either: (a) followed the ACAS Code of Disciplinary Practice and Procedures in Employment as prepared by the Advisory Conciliation and Arbitration Service; or (b) followed equivalent codes of practice issued by the Labour Relations Agency in Northern Ireland; or (c) sought and followed advice from our legal advice service. (2) For an order of compensation following the insured’s breach of statutory duty under employment legislation the insured has at all times sought and followed advice from our legal advice service since the date when the insured should have known about the employment dispute. (3) For any compensation award for redundancy or alleged redundancy or unfair selection for redundancy, the insured has sought and followed advice from our Claims Department prior to serving notice of redundancy. (4) The compensation is awarded by a tribunal or through the ACAS Arbitration Scheme, under a judgment made after full argument and otherwise than by consent or default, or is payable under settlement approved in writing in advance by us. (5) The total of the compensation awards payable by us shall not exceed £1,000,000 in any one period of insurance. Special exclusions (1) Any compensation award relating to the following: - trade union activities, trade union membership or non-membership; - pregnancy or maternity rights; - health and safety related dismissals brought under section 44 of the Employment Rights Act 1996; - statutory rights in relation to trustees of occupational pension schemes; - statutory rights in relation to Sunday shop and betting work. (2) Non-payment of money due under the relevant contract of employment or statutory provision relating thereto. (3) Any award ordered as a result of a breach of statutory rights in relation to the provision of relevant records to employees under the National Minimum Wage Act 1998. (4) Any compensation award or increase in compensation award ordered by the tribunal for failure to comply with a recommendation it has made, including non-compliance with a reinstatement or re-engagement order. (c) Service Occupancy We will negotiate for the insured’s legal rights against an employee or ex-employee to recover possession of premises owned by, or for which the insured is responsible. Special exclusion Any claim relating to defending the insured’s legal rights other than defending a counter-claim.

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2

LEGAL DEFENCE At the insured’s request (1) We will defend the insured person’s legal rights: (a) prior to the issue of legal proceedings when dealing with the - Police - Health and Safety Executive and/or Local Authority Health and Safety Enforcement Officer where it is alleged that the insured person has or may have committed a criminal offence; or (b) following an event which leads to the insured person being prosecuted in a court of criminal jurisdiction; or (c) if civil action is taken against the insured person for compensation under section 13 of the Data Protection Act 1998. We will also pay any compensation award made against the insured person under section 13 of the Data Protection Act 1998. (2) We will defend the insured’s legal rights following civil action taken against the insured for wrongful arrest in respect of an accusation of theft alleged to have been carried out during the period of insurance. (3) We will defend the insured person’s (other than the insured) legal rights if: (a) an event arising from their work as an employee leads to civil action being taken against them under legislation for unlawful discrimination on the grounds of sex, sexual orientation, race, disability, age, religious belief or political opinion; or (b) civil action is taken against them as a trustee of a pension fund set up for the benefit of the insured’s employees. (4) We will represent the insured person in appealing against the imposition or terms of any Statutory Notice issued under legislation affecting the insured’s business. (5) We will represent the insured in appealing against the refusal of the Information Commissioner to register the insured’s application for registration. (6) We will pay the attendance expenses of an insured person for jury service. (7) We will pay the cost and expenses incurred in acting on behalf of an insured person when dealing with the police where it is alleged that the insured person has or may have committed a criminal offence. Provided that (1) In so far as proceedings under the Health and Safety at Work etc Act 1974 are concerned, the territorial limit shall be any place where the Act applies. (2) At the time of the insured incident, the insured has registered with the Information Commissioner in respect of insured incident (1)(c). (3) We will not pay any more than £250 in respect of any one claim under insured incident 2(7). Special exclusion Any claim which leads to the insured person being prosecuted for infringement of road traffic laws or regulations in connection with the ownership, driving or use of a motor vehicle.

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CONTRACT DISPUTES We will negotiate for the insured’s legal rights in a contractual dispute arising from that agreement or that alleged agreement which has been entered into by or on behalf of the insured for the purchase, hire, sale or provision of goods or of services. Provided that (1) The amount in dispute exceeds £250. If the amount in dispute exceeds £5000, the insured will be responsible for the first £500 of legal costs in each and every claim. (2) If the amount in dispute is payable in instalments, the instalments due and payable at the time of making the claim exceed £250. (3) If the dispute relates to money owed to the insured, a claim under the policy is made within 90 days of the money becoming due and payable. Special exclusions (1) Any dispute arising from an agreement entered into prior to the inception date of this policy if the date of occurrence is within the first 90 days of the inception date of this policy. (2) Any claim relating to the following: - the settlement payable under an insurance policy; - a lease, licence or tenancy of land or buildings other than a dispute with a professional adviser in connection with the drafting of a lease, licence or tenancy agreement; - a loan, mortgage, pension or any other financial product and choses in action;. - a motor vehicle owned by, or hired or leased to, the insured. (3) A dispute with an employee or ex-employee which arises out of, or relates to, a contract of employment with the insured. (4) A dispute which arises out of the: - sale or provision of computer hardware, software, systems or services tailored by a supplier to the insured’s own specification. or - the purchase or hire of computer hardware, software, systems or services tailored by a supplier to the insured’s own specification. (5) A dispute arising from a breach or alleged breach of professional duty by an insured person. (6) The recovery of money and interest due from another party other than disputes where the other party intimates that a defence exists.

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4

DEBT RECOVERY We will negotiate for the insured’s rights including enforcement of judgment to recover money and interest due from the sale or provision of goods or services. Provided that (1) The debt exceeds £250. (2) The insured has exhausted all credit control and accounting procedures as declared to us. (3) A claim for debt recovery under this section is made within 90 days of the money becoming due and payable. (4) We have the right to select the method of enforcement, or to forego enforcing judgment if we are not satisfied that there are, or will be, sufficient assets available to satisfy judgment. Special exceptions (1) Any debt arising from an agreement entered into prior to the inception date of this policy if the debt is due within the first 90 days of the inception date of this policy. (2) Any claim relating to the following: - the settlement payable under an insurance policy; - a lease, licence or tenancy of land or buildings; - a loan, mortgage, pension or any other financial product and choses in action; - a motor vehicle owned by, or hired or leased to, the insured. (3) A dispute which arises out of the supply, hire, sale or provision of computer hardware, software, systems or services. (4) The recovery of money and interest due from another party where the other party intimates that a defence exists.

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PROPERTY PROTECTION AND BODILY INJURY

(a) Property Protection We will negotiate for the insured’s legal rights in any civil action relating to material property which is owned by, or the responsibility of the insured, following: (1) any event which causes or could cause physical damage to such material property; or (2) any nuisance or trespass. Special exclusions Any claim relating to the following: (1) a contract entered into by the insured; (2) goods in transit or goods lent or hired out; (3) goods at premises other than those occupied by the insured unless the goods are at such premises for the purpose of installations or use in work to be carried out by the insured; (4) mining subsidence; (5) defending the insured’s legal rights other than in defending a counter-claim; (6) a motor vehicle owned or used by, or hired or leased to an insured person. (b) Bodily Injury At the insured’s request, we will negotiate for an insured person’s and their family members’ legal rights following an event which causes the death of, or bodily injury to them. Special exclusions Any claim relating to the following: (1) any illness, disease, shock or bodily injury which develops gradually or is not caused by a specific or sudden accident; or (2) defending an insured person’s or their family members’ legal rights other than in defending a counter-claim; or (3) a motor vehicle owned or used by, or hired or leased to an insured person or their family members.

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6

TAX PROTECTION

(a) Full or Aspect Enquiries We will negotiate on behalf of the insured and represent them in any appeal proceedings in respect of a full enquiry and/or aspect enquiry. (b) Employers’ Compliance We will negotiate on behalf of the insured and represent them in any appeal proceedings in respect of a dispute concerning the insured’s compliance with Pay As You Earn or Social Security Regulations following a review by HM Revenue and Customs or the Department of Social Security Contributions Agency. (c) VAT Disputes We will negotiate on behalf of the insured and represent them in any appeal proceedings following an assessment issued by HM Revenue and Customs in respect of Value Added Tax due. Provided that (1) For all insured incidents, the insured has taken reasonable care to ensure that all returns are complete and correct and that such returns are submitted within the statutory time limits allowed. (2) We will not pay more than £2000 for aspect enquiries. Special exclusions (1) In respect of aspect enquiries the first £200 of costs and expenses in each and every claim. (2) Any insured incident arising from a tax avoidance scheme. (3) Any insured incident caused by the failure of the insured to register for Value Added Tax. (4) Any insured incident arising from any investigation or enquiries undertaken by HM Revenue and Customs Special Investigation Section or Special Compliance Office. (5) Any insured incident arising from any investigation or enquiry by HM Revenue and Customs into alleged dishonesty or alleged criminal offences.

7

STATUTORY LICENCE PROTECTION We will represent the insured in appealing to the relevant statutory or regulatory authority, court, or tribunal following an event which results in the relevant licensing or regulatory authority suspending, or altering the terms of, or refusing to renew, or cancelling the insured’s licence or British Standard Certificate of Registration. Special exclusions (1) An original application or application for renewal of a statutory licence or British Standard Certificate of Registration. (2) Any licence appeal relating to the ownership, driving or use of a motor vehicle.

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SPECIAL EXCEPTIONS APPLYING TO THIS SECTION 1 2 3

Any claim reported to us more than 180 days after the date the insured person should have known about the insured incident. Costs and expenses incurred before the written acceptance of a claim by us. Fines, penalties, compensation or damages which the insured person is ordered to pay by a court or other authority other than compensation awards as covered under insured incident 1(b) Compensation Awards and 2 Legal Defence. 4 Any claim relating to patents, copyrights, trademarks, merchandise marks, registered designs, intellectual property, secrecy and confidentiality agreements. 5 Any claim relating to franchise rights, or agency rights where the insured has the legal capacity to alter the legal relations of another. 6 Any insured incident deliberately or intentionally caused by an insured person. 7 A dispute with us not otherwise dealt with under Condition 7. 8 Any claim relating to a shareholding or partnership share in the insured unless such shareholding was acquired under a scheme open to all employees of the insured or a substantial number of them of a certain minimum grade other than the directors or partners of the insured. 9 An application for judicial review. 10 Legal action an insured person takes which we or the appointed representative have not agreed to or where the insured person does anything that hinders us or the appointed representative. 11 When either at the commencement of or during the course of a claim, the insured is bankrupt or has filed a bankruptcy petition or windingup petition, or has made an arrangement with its creditors, or has entered into a deed or arrangement or is in liquidation or part or all of its affairs or property are in the care or control of a receiver or administrator.

SPECIAL CONDITIONS APPLYING TO THIS SECTION 1

2

An insured person must: (a) keep to the terms and conditions of this section; (b) take reasonable steps to keep any amount we have to pay as low as possible; (c) try to prevent anything happening that may cause a claim; (d) send everything we ask for, in writing; (e) give us full details of any claim as soon as possible and give us any information we need. (a) We can take over and conduct in the name of the insured person, any claim or legal proceedings at any time.

3

We can negotiate any claim on behalf of an insured person. (b) If we agree to start legal proceedings and it becomes mandatory for an insured person to be represented by a lawyer, or if there is a conflict of interest, an insured person can choose an appointed representative by sending us the suitably qualified person’s name and address. We may choose not to accept the choice of representative, but only in exceptional circumstances. If there is a disagreement over the choice of appointed representative, another suitably qualified person can be appointed to decide the matter. (c) Before an insured person chooses a lawyer or an accountant, we can appoint an appointed representative. (d) An appointed representative will be appointed by us and represent an insured person according to our standard terms of appointment. The appointed representative must co-operate fully with us at all times. (e) We will have direct contact with the appointed representative. (f) An insured person must co-operate fully with us and with the appointed representative and must keep us up-to-date with the progress of the claim. (g) An insured person must give the appointed representative any instructions that we require. (a) An insured person must tell us if anyone offers to settle a claim and must not agree to any settlement without our written consent.

4

(b) If an insured person does not accept a reasonable offer to settle a claim, we may refuse to pay further costs and expenses. (c) We may decide to pay the insured person the amount of damages that the insured person is claiming or is being claimed against them instead of starting or continuing legal proceedings. (a) If we ask, an insured person must tell the appointed representative to have costs and expenses taxed, assessed or audited.

(b) An insured person must take every step to recover costs and expenses that we have to pay and must pay us any costs and expenses that are recovered. 5 If an appointed representative refuses to continue acting for an insured person without good reason or if an insured person dismisses an appointed representative without good reason, the cover we provide will end at once, unless we agree to appoint another appointed representative. 6 If an insured person settles a claim or withdraws their claim without our agreement, or does not give suitable instructions to an appointed representative, the cover we provide will end at once and we will be entitled to re-claim any costs and expenses paid by us. 7 If we and an insured person disagree about the choice of appointed representative, or about the handling of a claim, we and the insured person can choose another suitably qualified person to decide the matter. We must both agree to this in writing. If we cannot agree with the insured person about the choice of the second suitably qualified person, we will ask the president of a relevant national law society to choose a suitably qualified person. Whoever loses the disagreement will have to pay the costs of settling it. 8 We may at our discretion require the insured to obtain an opinion from counsel at the insured’s expense as to the merits of a claim or proceedings. If counsel’s opinion indicates that there are reasonable grounds for the pursuit or defence of a claim or proceedings, the cost of obtaining the opinion will be paid by us. 9 We will not pay any claim covered under any other policy, or any claim that would have been covered by any other policy if this section did not exist. 10 This section will be governed by English law. 11 All Acts of parliament within this section shall include equivalent legislation in Scotland, Northern Ireland, the Isle of Man or the Channel Islands as the case may be.

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HOW TO MAKE A CLAIM Once you have sent us the details of your claim and we have accepted it, we will start to resolve your legal problem. Always report your claim to us in writing and as soon as possible. We can send you a claim form to help you do this. We normally deal with claims through our Legal Claims Centre but sometimes we use appointed lawyers. Send your claim to: Legal Claims Centre, DAS Legal Expenses Insurance Company Limited, DAS House, Quay Side, Temple Back, Bristol BS1 6NH. When we cannot help Please do not ask for help from a solicitor or accountant before we have agreed. If you do, we will not pay the costs involved.

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Section 12 - Deterioration of Refrigerated/Frozen Food This section is applicable only if a Sum Insured in shown for Section 12 in the schedule.

Cover The Company will indemnify the insured in respect of loss, destruction or damage to refrigerated stock at the premises contained in any freezer or refrigerated cabinet, caused by deterioration or putrefaction due to 1 a rise or fall in temperature in the refrigerated chamber of any such cabinet resulting from a) breakdown of or accidental damage to its refrigerating plant or associated thermostatic or other control devices b) failure of the public electricity supply unless due to a deliberate act of the public electricity supply authority or the exercise by any such authority of its power to withhold or restrict supply 2 contamination by the escape of refrigerant fumes.

Limit of liability The Company’s liability in respect of any one occurrence will not exceed the sum insured by this section.

Sum insured As shown in the schedule, subject to General Condition 15 - Underinsurance.

Basis of claims settlement Following loss, destruction or damage insured by this section and subject to the adequacy of the sum insured and to the limit of liability the Company will pay the cost price of replacing the goods at the time of the loss, destruction or damage.

Special exclusions The Company will not be liable under this section for 1 the first £25 of each claim after the application of the underinsurance condition 2 refrigerated stock contained in any cabinet which is more than ten years old 3 consequential loss of any kind or description.

Warranty Warranted that during the currency of this policy there shall be in force a manufacturer’s guarantee or a maintenance contract on any freezer or refrigerated cabinet which does not have hermetically sealed motors and compressors.

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Endorsements and Warranties The following endorsements and warranties apply only if they are shown in the schedule or the appendix thereto under the heading 'Endorsements and warranties applicable'.

GPE1

Accidental damage extension Peril 15 as follows is deemed to be added to the list of perils insured by Section 3 - Group Equipment 15

GPE2

accidental damage occurring at the premises but excluding a)

wear, tear or depreciation or diminution in value

b)

loss, destruction or damage caused by or arising from i) frost, subsidence, ground heave or landslip or from settlement or bedding down of new structures ii) collapse or cracking of buildings iii) inherent vice, latent defect, faulty workmanship, defective design, plan or specification or the use of faulty materials iv) marring, scratching or denting or mechanical or electrical defect, failure, breakdown or derangement v) atmospheric or climatic conditions or any other gradually operating cause, rot, fungus, rust, corrosion, woodworm, moths, insects, vermin or pests vi) any process involving cleaning, dyeing, staining, repairing, restoring, renovating, fitting, alteration or maintenance of any property vii) use of any article contrary to manufacturers' instructions

c)

loss, destruction or damage caused by or resulting from i) any exclusions to perils 1 to 14 above ii) any peril excluded or deleted from 1 to 14 above

d)

loss, destruction or damage to loose or moveable property in the open.

Subsidence Peril 15 as follows is deemed to be added to the list of perils insured by Section 7 - Buildings. 15

GPE3

Subsidence or ground heave (of any part of the site on which the buildings stand) or landslip but excluding a)

all such loss, destruction or damage caused by or due to i) settlement or bedding down of new structures ii) compaction of the infill to the floors iii) the settlement or movement of newly made-up ground iv) river or coastal erosion or cliff-fall v) defective design or workmanship or the use of faulty or defective materials vi) demolition or structural repairs or alterations to the building

b)

movement of solid floor slabs unless the foundations beneath the external walls of the building are damaged at the same time by the same cause

c)

loss or destruction of or damage to fences, gates, hedges, oil tanks, paths, patios, paved areas or other artificially covered surfaces, swimming pools, tennis courts and walls, free-standing walls, unless the main building is damaged at the same time by the same cause

d)

loss or destruction of or damage to loose or moveable property in the open

e)

loss, destruction or damage for which compensation is provided by legislation

f)

the first £1,000 of each and every loss, after the application of the Underinsurance Condition, or such other amount as stated in the schedule.

Money Limits The Money Limits applicable to Section 4 - Group Money are amended to the amounts stated on the Schedule.

GPE4

Products Liability Extension The following alterations are made to Section 1 of this Policy:(A) Special exclusion 6 is deleted (B) Limit of liability is restated as follows: Limits of liability The Company’s liability in respect of damages a) for all occurrences giving rise to a claim or a number of claims arising from products supplied shall not exceed the amount stated in the schedule in any one period of insurance b) for any other occurrence giving rise to a claim or number of claims which arise from one cause shall not exceed the amount stated in the schedule.

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(C)

GPW1

The following additional Special exclusion is incorporated as Special exclusion 5 k): (The Company will not be liable under this section in respect of) (5 liability arising from or caused by) k) i) the making up, sale or supply of medicines, drugs, syringes, dressings or medical supplies or equipment of any kind whatsoever ii) the making up, sale or supply of cosmetics, toiletries, animal feeds, seeds, fertilisers or pesticides unless of a proprietary manufacture iii) any products manufactured, constructed or prepared in accordance with their plan, design, formula or specification failing to perform the function for which they are intended by the insured

Alarm warranty Warranted that 1 the intruder alarm installation approved by the Company must be a) set in its entirety whenever the premises are closed for business or left unattended b) kept in full working order and maintained during the currency of the policy under a maintenance contract with the installing company or other engineers approved by the Company and that the maintenance company must be advised immediately of any defect in the intruder alarm or its signalling 2 the Insured shall a) provide a copy of the specification if so requested by the Company b) notify the Company i) immediately any warning is received from the police that they may withdraw their response to calls ii) before any alteration is made to the intruder alarm installation.

GPW2

Group contents warranty Warranted that all portable Group contents be contained within that part of the premises protected by the intruder alarm installation.

KH2716 07.07

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Arranged by Morton Michel Alhambra House 9 St Michael’s Road Croydon CR9 3DD

Telephone: 0845 2570900 Fax: 0845 2570547/0548 www.mortonmichel.com