TERRORISM LIABILITY INSURANCE T3L
This is a claims made policy which applies only to claims first made against the
Insured during the Policy Period. This policy is not subject to the terms and
conditions of any other insurance. It should be read carefully by the Insured.
The Declarations Page and Application for this insurance are attached to and form
part of this Policy.
COVERAGE
In consideration of the payment of the premium set out in Item 5 of the Declarations
Underwriters agree subject to the insuring agreements, conditions, exclusions, definitions
and declarations contained in this policy, to indemnify the Insured in respect of their
operations, for their Ultimate Net Loss by reason of the liability imposed upon the insured by
law for monetary damages in respect of:
(a) claims first made against the Insured during the policy period set out in Item 4 of the
Declarations; or
(b) claims or circumstances likely to give rise to a claim insured hereunder that are reported
in writing to Underwriters within 90 days after the expiry of this policy
provided always that such claims arise out of an Occurrence as defined herein that takes
place during the policy period, for Bodily Injury and/or Property Damage resulting solely
and directly from an act or acts of Terrorism as defined herein.
EXCLUSIONS
This policy does not apply to any actual or alleged liability for:-
1. Loss, injury or damage arising directly or indirectly from nuclear detonation, reaction,
nuclear radiation or radioactive contamination, however such nuclear detonation,
reaction, nuclear radiation or radioactive contamination may have been caused.
2. Loss, injury or damage occasioned directly or indirectly by war, invasion or warlike
operations (whether war be declared or not), hostile acts of sovereign or government
entities, civil war, rebellion, revolution, insurrection, civil commotion assuming the
proportions of or amounting to an uprising, military or usurped power or martial law
or confiscation by order of any Government or public authority.
3. Loss by seizure or illegal occupation unless caused directly by an act of terrorism.
4. Loss, injury or damage caused by confiscation, requisition, detention, legal
occupation, embargo, quarantine, or any result of any order of public or government
authority which deprives the Insured of the use or value of its property, nor for loss or
damage arising from acts of contraband or illegal transportation or illegal trade.
5. Loss, injury or damage directly or indirectly arising from or in consequence of the
discharge of pollutants or contaminants, which pollutants and contaminants shall
include but not be limited to any solid, liquid, gaseous or thermal irritant, contaminant
of toxic or hazardous substance or any substance the presence, existence or
release of which endangers or threatens to endanger the health, safety or welfare of
persons or the environment or loss, injury or damage directly or indirectly arising
from chemical or biological release or exposure of any kind,
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However, notwithstanding the above and subject to all other terms, conditions and
exclusions of this policy, coverage shall be given for damages on account of Bodily
Injury and/or Property Damage, and for the costs of cleaning up pollutants or
contaminants, arising out of an occurrence as defined herein in respect of a
discharge of pollutants or contaminants immediately, solely and directly caused by
an act of Terrorism, and only where the pollutants or contaminants were present at
the location of an act of Terrorism prior to such act.
6. Loss, injury or damage by attacks by electronic means including computer hacking
or the introduction of any form of computer virus.
7. Loss, injury or damage caused by vandals or other persons acting maliciously or by
way of protest or strikes, riots or civil commotion unless caused directly by an act of
Terrorism.
8. Loss, injury or damage resulting from delay or loss of markets, failure to supply
goods or services, or failure to perform however caused or arising, and despite any
preceding loss insured hereunder.
9. Loss or damage caused by cessation, fluctuation or variation in, or insufficiency of,
water, gas or electricity supplies, telecommunications or service of any type.
10. Loss or increased cost as a result of threat or hoax, in the absence of physical
damage due to an act of terrorism.
11. Bodily Injury to employees or contract workers of the Assured or arising under any
workers’ compensation, unemployment compensation or disability laws, statutes, or
regulations;
12. Bodily Injury or Property Damage arising out of discrimination or humiliation;
13. Loss or damage to property
(a) owned, leased, rented or occupied by the Insured;
(b) in the care, custody or control of the Insured;
14. For fines, penalties, punitive damages, exemplary damages, or any additional
damages resulting from the multiplication of compensatory damages;
15. Mental injury, anguish or shock where no bodily injury has occurred to the claimant;
16. For Bodily Injury and/or Property Damage directly or indirectly relating to the actual,
alleged or threatened presence of asbestos in any form;
17. For any claims or circumstances disclosed on the Application for this insurance.
Nothing contained in the above exclusions shall extend this policy to cover any liability which
would not have been covered had these exclusions not been incorporated herein.
LIMITS
1. LIMITS OF LIABILITY
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Underwriters shall only be liable for Ultimate Net Loss, as set out in Item 2 of the
Declarations, any one occurrence and in the aggregate in excess of the underlying amount
and/or the each occurrence retention set out in Item 3 of the Declarations.
Regardless of the number of occurrences or claims made against the Insured or multiple
Insureds, Underwriters’ total limits of liability shall not exceed the amount of Ultimate Net
Loss in the aggregate as set forth in Item 2 of the Declarations. Such limits include defence
expenses.
2. UNDERLYING AMOUNT/EACH OCCURENCE RETENTION
Only that part of any payment constituting Ultimate Net Loss shall deplete the underlying
amount and/or the each occurrence retention set out in Item 3 of the Declarations.
Regardless of the number of claims made against the Insured, where the underlying amount
is in respect of each occurrence, the Insured shall always be liable for either the underlying
amount or the each occurrence retention, whichever is the greater, in respect of each and
every occurrence.
Regardless of the number of claims made against the Insured, where the underlying amount
is in the aggregate, the Insured shall always be liable for the remaining underlying amount
and/or the each occurrence retention.
The each occurrence retention shall be subject to no aggregate limitation regardless of the
number of occurrences or Claims made against the Insured.
CONDITIONS
This policy is subject to the following conditions:-
1. INSOLVENCY
The insolvency, bankruptcy, receivership or any refusal or inability to pay of the Insured
and/or any insurer and/or any Underwriter shall not operate to:-
(a) deplete the underlying amount(s) and/or each occurrence retention set out in Item 3
of the Declarations;
(b) increase Underwriter’s liability under this policy;
(c) increase any Underwriter’s share of liability under this policy.
In no event shall any Underwriter of this policy assume the responsibilities and/or obligations
of the Insured and/or any insurer and/or any Underwriter.
2. OTHER INSURANCE
Where the Insured is, irrespective of this policy, entitled to be indemnified in whole or in part
by any other insurance in respect of any damages which would otherwise have been
indemnifiable in whole or in part by the Underwriters of this policy, there shall be no
contribution or participation by the Underwriters of this policy on the basis of any deficiency,
concurrent or double insurance for such damages or that part of such damages for which the
Insured is entitled to be indemnified by such other insurance. This condition will apply
whether or not the Insured is actually indemnified by such other insurance.
3. NOTICE OF CLAIM
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As a condition precedent to coverage under this Policy, immediate written notice must be
given to Underwriters of any claim or circumstance that, alone or in combination with any
other claims or circumstances, may give rise to liability.
For the purpose of this Condition 3 the Insured will notify Underwriters of any claim covered
hereunder, or circumstances likely to give rise to a claim that would be covered hereunder,
for which the Insured is alleged to be liable without regard to the amount of
damages claimed.
4. PROTECTION MAINTENANCE
The Insured warrants that any protections and safeguards provided for the protection of
persons and/or property shall be maintained in good order throughout the currency of this
Policy and shall be in use at all relevant times, and that such protection shall not be
withdrawn or varied without the consent of the Underwriters.
5. PREVENTION OF FURTHER CLAIMS
As soon as the Insured becomes aware of an occurrence or receives a claim, the Insured
shall promptly, and at its own expense, take all reasonable steps to prevent further Bodily
Injury and/or Property Damage resulting from the same occurrence or conditions which may
give rise to a similar occurrence.
6. ATTACHMENT OF LIABILITY
Liability to pay under this policy shall not attach unless and until the Insured has, with
Underwriters’ prior written consent, paid an amount of Ultimate Net Loss which exceeds the
underlying amount and/or the each occurrence retention set out in Item 3 of the
Declarations.
7. DEFENCE
Underwriters shall not be called upon to assume the handling or control of the defence or
settlement of any claim made against the Insured but Underwriters shall have the right, but
not the duty, to participate with the Insured in the defence or settlement of any claim which
may be indemnifiable in whole or in part by this policy.
Underwriters will indemnify the Insured for their several shares of any defence expenses
incurred after exhaustion of the underlying amount or each occurrence retention, whichever
is the greater, provided the prior written consent of Underwriters is obtained before those
defence expenses are incurred and subject to Underwriters’ limits of liability set out Item 2 of
the Declarations.
The Insured shall not admit liability for or settle any claim which may be indemnifiable in
whole or in part by this policy without Underwriters written consent.
8. APPEALS
In the event the Insured elects not to appeal, a judgement which may, in whole or in part,
involve indemnity under this policy, Underwriters may, following discussion with the Insured,
elect to make such appeal at their own cost and expense and shall be liable for the taxable
costs and disbursements and any additional interest incidental to such appeal; but in no
event shall the liability of Underwriters exceed the relevant limits of liability set out in Item 2
of the Declarations plus such cost, expense, costs, disbursements and interest.
9. APPORTIONMENT OF DEFENCE EXPENSES
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Whenever any written demand received by the Insured for damages is finally resolved by a
payment by the Insured which, regardless of the amount thereof, is only covered in part by
this policy, then the percentage of any defence expenses that can be included in the
Ultimate Net Loss recoverable hereunder shall be calculated by dividing that part of such
payment which is covered by this policy, by the total amount paid by the Insured.
10. LOSS PAYABLE
Any amount for which Underwriters are liable under this policy shall be due and payable
solely to the Insured’s London agent within 30 days after it is agreed by Underwriters.
11. SUBROGATION
Where an amount is paid by Underwriters under this policy, the Insured’s rights of recovery
against any other person or entity in respect of such amount shall be exclusively subrogated
to Underwriters. At Underwriters’ request the Insured will assist, co-operate and lend its
name to the exercise of Underwriters’ rights of subrogation. The Insured is hereby
authorised to waive any rights of recovery in relation to any other party, provided such
waiver is given in writing prior to the relevant occurrence, subject to prior agreement by
Underwriters.
12. APPLICATION OF RECOVERIES
All recoveries or payments recovered or received subsequent to a payment by Underwriters
under this policy, after deduction of all recovery expenses, shall be applied on a “top down”
basis such that the last amount paid out in settlement of a loss shall be reimbursed first and
all necessary adjustments shall then be made between the Insured and Underwriters,
notwithstanding any rule or precedent to the contrary.
13. WAIVER OR CHANGE
Notice to or knowledge possessed by any person shall not effect a waiver or change in any
part of this policy or stop Underwriters from asserting any right under this policy; nor shall
any part of this policy be waived or changed, except by endorsement issued to form a part
hereof, signed by Underwriters.
14. ASSIGNMENT
Assignment of interest under this policy shall not bind Underwriters unless and until their
written agreement thereto is secured.
15. CANCELLATION
Cancellation of this policy may be effected only by Underwriters or their representatives
sending by certified or registered mail, notice to the other party stating when, not less than
30 days thereafter, cancellation shall be effective. The mailing of notice as aforesaid by
Underwriters or their representatives to the first named Insured at the address shown in Item
1 of the Declarations shall be sufficient proof of notice and the coverage under this policy
with respect to all Insureds shall end on the effective date and hour of cancellation stated in
the notice. Delivery of such written notice either by first named Insured or by Underwriters or
Underwriters’ representatives shall be equivalent to sending by certified or registered mail.
If this policy shall be cancelled by Underwriters, they shall retain the pro rata proportion of
the premium for the period this policy has been in force.Notice of cancellation by
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Underwriters shall be issued only in the event of non-payment or short payment of
premium. This policy shall be non-cancellable by the Insured.
16. LAW AND JURISDICTION
As set out in declaration Item 7
17. SERVICE OF SUIT
If and as attached to this policy, solely with respect to any proceeding to compel arbitration
as provided in Condition 18 or for the confirmation or enforcement of any arbitration award.
18. ARBITRATION
If the Assured and Underwriters fail to agree in whole or in part regarding any aspect of this
Policy, each party shall, within ten (10) days after the demand in writing by either party,
appoint a competent and disinterested arbitrator and the two chosen shall before
commencing the arbitration select a competent and disinterested umpire. The arbitrators
together shall determine such matters in which the Assured and Underwriters shall so fail to
agree and shall make an award thereon, and if they fail to agree, they will submit their
differences to the umpire and the award in writing of any two, duly verified, shall determine
the same.
19. INSPECTION AND INVESTIGATION
Underwriters shall be permitted but not obligated to inspect the Insured’s property and
operations at any reasonable time. Neither Underwriters’ right to make inspections nor the
making thereof nor any report thereon shall constitute an undertaking on behalf of or for the
benefit of the Insured or others, to determine or warrant that such property or operations are
adequate or safe.
In addition to the notice requirements in this policy, on request by Underwriters, the Insured
will provide full details of all occurrences or claims which could deplete the underlying
amount, deplete the each occurrence retention or ultimately give rise to indemnity under this
policy.
The Insured will co-operate fully with Underwriters should Underwriters decide to investigate
any such occurrence or claim. Underwriters may examine and audit the Insured’s books and
records at any time during normal working hours, as far as they relate to the subject matter
of this policy.
20. CROSS LIABILITY
In the event of claims being made by reason of Bodily Injury suffered by any employee of
one Insured which does not arise out of the injured employee’s employment, for which
another Insured is liable, then this policy shall cover the Insured against whom such claim is
made in the same manner as if separate policies had been issued to each Insured.
Nothing contained in this Condition 20 shall operate to increase Underwriters’ limits of
liability set out in Item 2 of the Declarations.
21. ONUS OF PROOF
In any arbitration or other proceeding to enforce a claim for loss under this policy, the burden
of proving that the loss is recoverable under this Policy and that no limitation or exclusion of
this policy applies and the quantum of loss shall fall upon the Insured.
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DEFINITIONS
This policy is subject to the following definitions:-
1. TERRORISM
For the purpose of this Insurance, an act of terrorism means an act, including the use of
force or violence, of any person or group(s) of persons, whether acting alone or on behalf of
or in connection with any organisation(s), committed for political, religious or ideological
purposes including the intention to influence any government and/or to put the public in fear
for such purposes.
2. BODILY INJURY
The words “Bodily Injury”, wherever used in this policy, shall mean all physical injury to a
third party human being including death, sickness, disease or disability and all mental injury,
anguish or shock to such human being resulting from such physical injury,
3. CLAIM
The word “claim”, wherever used in this policy, shall mean that part of each written demand
received by the Insured for monetary damages covered by this policy, including the service
of suit or institution of arbitration proceedings. The term “claim” shall not include a demand
for an injunction or any other non-monetary relief.
4. DEFENCE EXPENSES
The words “defence expenses”, wherever used in this policy, shall mean investigation,
adjustment, appraisal, defence and appeal costs and expenses and pre and post judgement
interest, paid or incurred by or on behalf of the Insured.The salaries, expenses or
administrative costs of the Insured or its employees or any insurer shall not be included
within the meaning of defence expenses.
5. PROPERTY DAMAGE
The words “property damage”, wherever used in this policy, shall mean physical loss of,
physical damage to or physical destruction of tangible property of a third party, including loss
of use of the tangible property so lost, damaged or destroyed and/or removal of debris from
third party property.
6. ULTIMATE NET LOSS
The words “ultimate net loss”, wherever used in this policy, shall mean the amount the
Insured is obligated to pay, by judgement or settlement, as damages resulting from a claim,
including defence expenses in respect of such claim arising out of one occurrence.
7. OCCURRENCE
The term “Occurrence” shall mean any one loss and/or series of losses arising out of and
directly occasioned by one Act or series of related Acts of Terrorism for the same purpose or
cause. The duration and extent of any one “Occurrence” shall be limited to all losses directly
occasioned by one Act or series of Acts of Terrorism arising out of the same purpose or
cause during any period of 72 consecutive hours commencing at the time of the first such
act and within a radius of ten (10) miles of the location of the first such Act of
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Terrorism. However for the purposes of this policy no period of 72 consecutive hours shall
commence prior to the attachment of this Policy.
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