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Contract Works and Public & Products Liability Insurance

Annual policy (v2018.1)

CONTRACT WORKS AND PUBLIC & PRODUCTS LIABILITY

V2018.1 - Arthur J. Gallagher & Co (Aus) Limited. AFSL 238312 Page 2 of 32

Table of contents

Table of contents ............................................................................................................................................. 2

Introduction ...................................................................................................................................................... 3

General information ......................................................................................................................................... 3

SECTION A – CONTRACT WORKS ................................................................................................................ 6

EXTENSIONS TO SECTION A ......................................................................................................................... 9

EXCLUSIONS TO SECTION A ....................................................................................................................... 12

EXTENSIONS TO SECTION A ....................................................................................................................... 14

DEFINITIONS TO SECTION A ....................................................................................................................... 15

SECTION B – PUBLIC & PRODUCTS LIABILITY ........................................................................................ 17

EXTENSIONS TO SECTION B ....................................................................................................................... 19

EXCLUSIONS TO SECTION B ....................................................................................................................... 20

DEFINITIONS TO SECTION B ....................................................................................................................... 23

GENERAL EXCLUSIONS APPLICABLE TO SECTIONS A AND B ............................................................. 26

CONDITIONS APPLICABLE TO SECTIONS A AND B ................................................................................ 27

DEFINITIONS APPLICABLE TO SECTIONS A AND B ................................................................................ 31



Introduction

There are two parts to this document: General Information and the Policy Wording. An overview of each of these parts is provided below.

General information This part of the document contains information you need to know before you take out a policy. Please read it carefully before taking out this insurance.

Policy wording This part of the document contains two sections, namely Section 1 – Contract Works and Section 2 – Public and Products Liability. Each section details all the Insuring Clauses, Extensions, Exclusions, Conditions and Definitions relating to that section of this Policy and forms part of your legal contract with us.

If we issue you with an insurance policy, you will be given a Policy Schedule. The Policy Schedule sets out the specific terms applicable to your cover and should be read together with this Policy.

As this Policy and the Policy Schedule that we send to you form your legal contract with us, please keep them in a safe place for future reference.

If you require further information about this product, please contact your insurance broker.

About Gallagher Gallagher is one of Australia’s – and the world’s – largest insurance broking and risk management companies. We’re the broker of choice for more than 100,000 Australian businesses – from micro-SMEs through to multinational corporations and iconic brands.

With 25+ regional and metropolitan branches across Australia, we understand local business communities because we’re part of them ourselves.

Globally, the Gallagher network of 600+ offices in over 30 countries, enables us to leverage relationships with international insurance partners to create programs that achieve claims outcomes beyond the scope of many smaller brokers.

Gallagher does not act as the agent of the insurer and does not issue, guarantee or underwrite this policy.

About your insurer Allied World Assurance Company Holdings, GmbH, through its subsidiaries, is a global provider of insurance and reinsurance solutions. Allied World has enjoyed tremendous growth and success since our inception in 2001, and now offers superior client service through a global network of more than 20 offices and branches.

Allied World is a proud part of Fairfax Financial Holdings, the 7th largest North American Re/Insurer, with US$64bn in total assets, and in excess of US$20bn in capital.

Lloyd's is the world's leading insurance market providing specialist insurance services to businesses in over 200 countries and territories.

General information

The information contained in this part is general information only and does not form part of your contract with us. The Policy Terms and Conditions in the rest of this booklet contain details of your contract.

Your duty of disclosure Before you enter into an insurance contract, you have a duty to tell us anything that you know, or could reasonably be expected to know, may affect our decision to insure you and on what terms. You have this duty until we agree to insure you. You have the same duty before you renew, extend, vary or reinstate an insurance contract.

• You do not need to tell us anything that:



• reduces the risk we insure you for; or • is common knowledge; or • we know or should know as an insurer; or • we waive your duty to tell us about.

If you do not tell us something

If you do not tell us anything you are required to, we may cancel your contract or reduce the amount we will pay you if you make a claim, or both.

If your failure to tell us is fraudulent, we may refuse to pay a claim and treat the contract as if it had never existed.

Privacy Pen Underwriting handles your personal information with care and in accordance with the Privacy Act 1988 and the Australian Privacy Principles. We collect personal information about you to provide you with insurance and insurance related services. We may disclose your personal information to third parties for the purposes described in our Privacy Policy, including related entities, insurers, reinsurers, agents and service providers, some of whom may be located in the United Kingdom and India. By asking us to provide you with insurance and insurance related services, you consent to the collection, use and disclosure (including overseas disclosure) of your personal information for the purposes described in our Privacy Policy. Where you provide personal information about others, you represent to us that you have made them aware of that disclosure and of our Privacy Policy and that you have obtained their consent. If you do not consent to provide us with the personal information that we request, or withdraw your consent to the use and disclosure of your personal information at any stage, we may not be able to offer you the products or provide the services that you seek. For information about how to access and or correct the personal information we hold about you or if you have any concerns or complaints, ask us for a copy of our Privacy Policy or visit www.penunderwriting.com.au.

The general insurance code of practice The Insurance Council of Australia Limited has developed a General Insurance Code of Practice, which is a self-regulatory code for use by all insurers. The Code aims to raise the standards of practice and service in the insurance industry.

The Insurer is a signatory to the Code. Further information about the General Insurance Code of Practice is available from the Insurer or your broker.

Dispute resolution The Insurer has a free internal complaints resolution process that can be accessed by contacting the Insurer or your Broker. However, if you do not agree with any decision the Insurer makes in relation to your insurance policy you may contact the Insurer or your Broker for information on how to access external dispute resolution schemes.

Insurer This Policy is underwritten by;

Section A – Contract Works

80% Allied World Assurance Company, Ltd (Australia Branch) under Binding Agreement

No. B6082218PENCN01 as Lead and

20% Certain Underwriters at Lloyd’s under Binding Agreement No. B1262BW0020117

Section B – Public & Products Liability

75% Certain Underwriters at Lloyd’s under Binding Agreement No. B1262BW0019717

25% Berkley Insurance Company trading as Berkley Re Australia

Our agreement with you This policy is a legal contract between you and us. You pay us the premium, and we provide you with the cover you have chosen as set out in this Policy, occurring during the Policy Period shown on your Policy Schedule or any renewal period.



The amount of any deductible that applies to this Policy will be shown on your Policy Schedule.

Your policy Your insurance policy consists of the policy terms & conditions in this document and the Policy Schedule we give you.

Please read your policy carefully, and satisfy yourself that it provides the cover you require.

If you want more information about any part of your policy, please ask us or your insurance broker.

You should keep your policy booklet and Policy Schedule together in a safe and convenient place, for future reference.

Other party’s interests You must tell us of the interests of all parties (such as financiers, owners, lessors) who may be able to be covered by this insurance. We will protect their interests only if you have told us about them and we have noted them on your Policy Schedule.

Paying your premium You must pay your premium by the due date. If we do not receive your premium by this date or your payment is dishonoured, this Policy will not operate and there will be no cover.



SECTION A – CONTRACT WORKS

1) Insuring Clause – Construction Period

The Insurer will indemnify the Insured in respect of Damage to the Interest Insured not specifically excluded

herein occurring during the Period of Risk and within the Territorial Limits (including whilst in storage or in

transit or movement by road or air or rail or by inland or coastal waters and during loading, unloading and

transhipments).

2) Insuring Clause - Defects Liability Period

The Insurer shall also be liable for Damage to the Interest Insured not otherwise excluded which, either:

• is caused by the Insured in the course of works carried out for the purpose of complying with the obligations under the maintenance and/or defects provisions of any Insured Contract; or

• occurs during any Defects Liability Period from a cause arising during the Construction Period at the Insured Contract site.

The maximum period of cover under this Extension is 12 months followed by a further 12 month period from

the date on which the work of reconstruction, rectification or repair undertaken during the Defects Liability

Period is formally accepted by the principal.

3) Basis of Indemnity In the event of Damage to the Interest Insured, the amount payable by the Insurer shall be the full cost of reinstatement of such Interest Insured, but not exceeding the Sum(s) Insured plus any applicable Sub-Limits stated in the Schedule.

For the purposes of calculating the full cost of reinstatement, the following provisions shall apply:

a) Where Damage to the Interest Insured can be repaired, the cost of reinstatement shall be the cost of

restoration of the Interest Insured to a condition substantially the same as but not better or more

extensive than its condition when new.

b) Where the Interest Insured is:

I. totally lost or destroyed, or II. Damaged and the cost of repairs equal or exceed the value of the Damaged Interest Insured

(whereby the Interest Insured shall be deemed to be totally lost or destroyed),

the full cost of restatement shall be the cost of replacement of the totally lost or destroyed Interest Insured by substantially similar property in a condition equal to but not better or more extensive than its condition when new.

c) Notwithstanding the provisions of paragraphs (a) and (b) above, the full cost of reinstatement shall

include those extra costs (including costs of demolition and dismantling) necessarily incurred to

comply with the requirements of any Act of Parliament or Regulation made thereunder or any by-law

or regulation of any municipal or other statutory authority other than such extra costs which the Insured

has been required to comply with (but did not do so) prior to the happening of the Damage.

d) In all cases, the full cost of reinstatement (including the provisions of paragraph (c) above) shall be

the total final cost to the Insured after completion of the repair, reinstatement or replacement of the

Damaged Interest Insured (including a reasonable margin for profit where such work is carried out in

whole or in part by the Insured).

e) Where Construction Plant and Equipment is hired or leased by the Named Insured and insured

hereunder, and the conditions of the hire contract or agreement requires the Insured to pay additional

charges in excess of the full cost of reinstatement of such Construction Plant and Equipment, the

amount payable by the Insurer shall be increased in accordance with the requirements of the hire

contract or agreement.



f) It is hereby declared and agreed that, in the event that Additional Insured 3 (the Finance Parties) elects

not to reinstate the Interest Insured, in accordance with the terms of any finance agreement or tripartite

deed or similar agreement, the Basis of Indemnity is amended to payment in cash, to the equivalent

value of reinstatement as set out in clauses (a)-(d) above.

4) Automatic Reinstatement The Sum Insured shall not be reduced on account of any amounts paid by the Insurer following Damage insured by this Policy and shall continue for the full amount stated in the Schedule throughout the Period of Insurance.

In consideration of this, and if requested by the Insurer, an additional premium shall be payable for the period from the date of the Damage to the expiry of this Policy calculated at a rate not exceeding the pro-rata of that used to calculate the deposit premium, applied to the net sum paid by the Insurer as indemnity under this Policy in respect of the Damage.

Provided further that no such additional premium shall in any case be payable where the net sum paid by the Insurer after deduction of any applicable Deductible and all recoveries is less than $1,000,000.

5) Escalation Clause If at any time during the Period of Insurance the contract value of any Insured Contract is revised and exceeds the Sum Insured then the Sum(s) Insured and Sub-limits shall be automatically increased provided the amount of any such increase shall not increase the Sum(s) Insured and Sub-Limits in excess of 120% of the amounts shown in the Schedule.

6) Principal Supplied Property This Policy applies to any property of whatsoever nature or description as may be supplied by or on behalf of a principal in connection with any Insured Contract.

7) 96 Hours Clause For the purpose of determining the Deductible applicable in respect of the perils of storm, tempest, named cyclone, flood, water damage, subsidence, collapse and earthquake resulting in Damage occurring in any period of 96 consecutive hours and arising from or caused by the same atmospheric or geological disturbances, such Damage shall be considered as arising from one Occurrence and the Insured may select the moment from which the aforesaid period of 96 consecutive hours shall be deemed to have commenced.

8) Taken Into Use Coverage for any Insured Contract will cease only when all operations to be performed by or on behalf of the Insured under the Insured Contract have been completed. This Policy will continue in force in respect of works including (if applicable) existing structures and/or facades and/or other property in the Insured’s custody or control for which the Insured remains responsible notwithstanding such works including existing structures and/or facades and/or other property in the Insured’s custody or control shall be occupied or taken into use, in whole or in part.



9) Marine / Non-Marine Loss Sharing The Insured hereby undertakes to examine each item of the Interest Insured as soon as practicable after arrival at the contract site for possible Damage sustained during transit.

In the case of packed items which are to be left in their packaging until a later date, the packaging is to be individually visually examined for signs of possible Damage and where such Damage is visible, the items are to be unpacked and inspected and any Damage discovered reported to any other insurer covering the relevant transit of the items, if any.

Notwithstanding the above, in the event of Damage to the Interest Insured being discovered after the risk has terminated under any insurance in respect of a transit by sea (other than transit wholly by inland or coastal waters) or air or any subsequent period of discovery attaching thereto (whichever shall be the later) and after proper investigation it is not possible to ascertain whether the cause of such Damage happened prior to termination of the transit by sea (other than transit wholly by inland or coastal waters) or subsequently, the Insurer shall contribute 50% of the properly adjusted claim provided that any insurer of the transit by sea (other than transit wholly by inland or coastal waters) also agrees to contribute 50% of such properly adjusted claim and any such settlement to be without prejudice to the subsequent final apportionment of the claim agreed between the Insurer and the other insurer.

Should settlement as described herein be made by the Insurer, it is understood that the applicable Deductible stated in the Schedule shall be reduced proportionally to the contribution made by the Insurer.

10) Completed Dwellings This Policy is extended to include Damage to completed homes and their contents including those used as a show home / display home. The cover provided by this Clause 10 shall cease on the date shown in the Schedule or such earlier as the property ceases to be in the physical or legal control of the Insured. .



EXTENSIONS TO SECTION A

In the event of Damage to the Interest Insured covered by this Policy, the Insurer shall also be liable, subject to any Sub-Limit shown in the Schedule, for:

1) Removal of Debris Costs or expenses reasonably and necessarily incurred in removing, clearing, dismantling or demolishing debris, materials, property or substances (including the removal, clearance or demolition of any of the Interest Insured, which is no longer fit for the purpose for which it was intended) including the carrying out of temporary repairs, shoring up, propping and protecting undamaged property, the restoration and/or resumption of original working conditions following Damage.

2) Consultants' Fees Clerks' of works salaries and expenses, architects', surveyors', engineers', project managers', project coordinators', legal and all other fees, costs or expenses reasonably and necessarily incurred by or on behalf of any of the Insured following Damage, but excluding fees for the preparation of a claim to be made under this Policy.

3) Claims Preparation Costs Reasonable costs and expenses necessarily incurred by the Named Insured and not otherwise recoverable in connection with or incidental to preparing, collating, auditing, or qualifying Damage to the Interest Insured covered by this Policy.

4) Expediting Expenses Costs and expenses reasonably and necessarily incurred by or on behalf of any of the Insured in connection with or incidental to expediting the commencement, carrying out or completion of the repair, reinstatement or replacement of the Interest Insured consequent upon actual Damage.

Such costs and expenses shall include but not be limited to:

a) express or chartered carriage, delivery or freight including by sea or air;

b) chartered and all other travel including by sea or air by any of the Insured's directors, officers,

employees, agents, sub-contractors, consultants and representatives;

c) overtime rates of wages or salaries, and other related allowances and payments;

d) hire of additional labour, plant, equipment, materials, expertise or services;

e) accommodation or boarding costs (including meals and other costs associated therewith);

f) additional administrative and/or overhead expenses.

5) Mitigation Expenses Costs and expenses reasonably and necessarily incurred by or on behalf of any of the Insured in connection with or incidental to mitigating, containing, eliminating or suppressing actual or imminent Damage.

Such costs and expenses shall include, but not be limited to:

a) the payment of wages or salaries to any of the Insured's employees;

b) the cost of replenishing fire fighting appliances or systems.



6) Search and Locate Costs Costs and expenses reasonably and necessarily incurred by or on behalf of any of the Insured following irregularities discovered in the results of a hydrostatic or other testing procedure.

Such costs and expenses shall include, but not be limited to:

a) the cost of hiring, operating and transporting apparatus;

b) the cost of all associated earthworks;

and are payable notwithstanding that Damage may not have occurred to the Interest Insured.

7) Restoration of Records Costs and expenses reasonably and necessarily incurred by or on behalf of any of the Insured (including remuneration to any of the Insured for supervising and/or for actual work) in collecting information, preparing and/or re-writing and/or reproducing files, plans, drawings, designs, specifications, documents, manuscripts, business and other books and systems, media and records consequent upon the occurrence of any peril or eventuality insured by this Policy.

8) Temporary Protection Costs and expenses reasonably and necessarily incurred by or on behalf of any of the Insured in the purchasing or hiring and in the erection and dismantling of hoardings, barriers, fences and any other form of protection which the Insured must provide in order to comply with the requirements of any government department, local government or other statutory authority.

9) Plot Ratio Indemnity The following amounts where as a result of the exercise of statutory powers and/or authority by any government department, local government or other statutory authority the reinstatement or replacement of the Damaged Interest Insured as before is prohibited or is only permissible subject to a reduced floor space ratio index and/or to the payment of certain fees and contributions as a pre requisite to reinstatement or replacement:

a) the difference between the actual cost of reinstatement or replacement incurred in accordance with a

reduced floor space ratio index and the cost of reinstatement or replacement that would have been

incurred had a reduced floor space ratio index not been applicable;

b) any fees, contributions or other impost payable to any government department, local government or

other statutory authority where such fee, contribution or impost is a condition precedent to consent

being given to the reinstatement or replacement of such structure;

any additional costs and expenses incurred by or on behalf of the Insured as a result of alterations to the specifications of such structure brought about by the reduced floor space ratio index.

In arriving at the amount payable under paragraph (a) above any amount paid by the Insurer shall include the extra costs of reinstatement or replacement as are insured by virtue of paragraph 3)c) of the Basis of Indemnity or elsewhere in this Policy.



10) Undamaged Property Additional costs of reinstatement in respect of any portion(s) of the Interest Insured which are not Damaged, provided that the additional costs are reasonably and necessarily incurred solely as a result of Damage to the Interest Insured.

11) Undamaged Foundations Where due to the exercise of statutory powers and/or authority by any government department, local government or other statutory authority, the reinstatement or replacement of Damaged Interest Insured where the foundations thereof are not Damaged is required to be carried out upon another site, then the abandoned foundations shall be deemed to have been totally lost and/or destroyed, provided that if the presence of the abandoned foundations increases the resale value of the original site then such increase in resale value shall be regarded as salvage and the amount thereof shall accordingly be payable to the Insurer by the Insured.

12) Output Replacement If any item(s) of the Interest Insured having a measurable output is Damaged (in whole or in part) and which is capable of replacement with a new item(s) which performs a similar function, then the amount payable by the Insurer in respect of such Interest Insured shall be on the following basis:

a) If any Interest Insured is to be replaced by an item(s) which has the same or a lesser total output, then

the amount payable thereof is the new installed cost of such replacement item(s) as would give the

same total output as the Damaged item(s).

b) If any Interest Insured is to be replaced by an item(s) which has a greater total output and the

replacement value is no greater than the value of the Damaged item(s), then the amount payable shall

be the cost of the replacement item(s) and no deduction shall be made due to improved output.

c) If any Interest Insured is to be replaced by an item(s) which has a greater total output and the

replacement value is greater than the value of the Damaged item(s), then the insurable value thereof

is that proportion of the new installed cost of the replacement item(s) as the output of the Damaged

item(s) bears to the output of the replacement item(s). The difference between the insurable value as

defined and the new installed cost of the replacement item(s) shall be borne by the Insured, unless no

replacement item(s) of the same total output are available.

13) Loss of Hire Charges Costs and expenses associated with continuing hire charges of Constructional Plant and Equipment, where such Construction Plant and Equipment is insured under this Policy.

14) General Average

The application of the maritime conditions of general average and salvage charges following transport of the Interest Insured by sea to the extent covered by this Policy shall be deemed to be Damage covered by this

Policy.



EXCLUSIONS TO SECTION A

This Policy does not cover:

1) Defects (LEG2/96) All costs rendered necessary by defects of material, workmanship, design, plan or specification and should Damage occur to any portion of the Interest Insured containing any of the said defects the cost of replacement or rectification which is hereby excluded is that cost which would have been incurred if replacement or rectification of the Interest Insured had been put in hand immediately prior to the said Damage.

For the purpose of this Policy, and not merely this Exclusion 1), it is understood and agreed that any portion of the Interest Insured shall not be regarded as Damaged solely by virtue of the existence of any defect of material, workmanship, design, plan or specification.

2) Penalties, Contractual or Other Consequential Loss Penalties for non completion or delay in completion, non compliance with any Contract conditions or any other consequential financial loss.

3) Inventory Loss Damage due to disappearance where such disappearance is discovered only by the taking of an inventory, provided that this Exclusion shall not apply where loss as aforesaid can reasonably be attributed to burglary or theft.

4) Aircraft, Powered Waterborne Craft Damage to any aircraft or to any power driven waterborne craft exceeding 10 metres in length, provided that this exclusion shall not apply in respect of Damage to waterborne craft used on inland or coastal waters.

5) Ocean Marine Damage to the Interest Insured occurring during the course of ocean marine or air shipment between ports or places outside the Territorial Limit.

6) Cash, Cheques, Money Damage to cash, bank notes, treasury notes, cheques, postal orders, money orders, stamps or securities, bills of exchange, bonds, deeds, manuscripts, promissory notes, tokens and vouchers.

7) Corrosion The costs of replacing, repairing or rectifying that part of the Interest Insured rendered necessary by corrosion; provided this Exclusion shall be limited to the part immediately affected and shall not apply to any other part or parts of Interest Insured sustaining Damage in consequence of such corrosion.

8) Wear, Tear, Rust, Gradual Deterioration The costs of replacing, repairing or rectifying that part of the Interest Insured rendered necessary by its own wear, tear, rust or gradual deterioration; provided this Exclusion shall be limited to the part immediately affected and shall not apply to any other part or parts of Interest Insured sustaining Damage in consequence of wear, tear, rust or gradual deterioration.



9) Construction Plant & Equipment Damage to Construction Plant and Equipment unless a Sum Insured in the Schedule has been included.

However in the event of a Sum Insured has been included for Construction Plant and Equipment in the Schedule this Policy does not cover Damage to Construction Plant and Equipment directly caused by:

a) mechanical or electrical breakdown or derangement; or

b) testing, involving the imposition of abnormal conditions, or intentional overloading.

Provided that this Exclusion shall be limited to the part immediately affected and shall not apply to any other part or parts of Construction Plant or Equipment sustaining Damage in consequence of mechanical or electrical breakdown or derangement, testing or overloading.

10) Electronic Data Damage, destruction, distortion, erasure, corruption or alteration of Electronic Data from any cause whatsoever (including Computer Virus) or loss of use, reduction in functionality, costs or expenses of whatsoever nature resulting therefrom, regardless of any other cause or event contributing concurrently or in any other sequence to the loss.

For the purposes of this Exclusion, Electronic Data means facts, concepts and information converted to a form useable for communications, interpretation or processing by electronic and electromechanical data processing or electronically controlled equipment and includes programmes, software and other coded instructions for the processing and manipulation of data or the direction and manipulation of such equipment.

For the purposes of this Exclusion, Computer Virus means a set of corrupting, harmful or otherwise unauthorised instructions or code including a set of maliciously introduced unauthorised instructions or code, programmatic or otherwise, that propagate themselves through a computer system or network of whatsoever nature. Computer Virus includes but is not limited to 'Trojan Horses', 'worms' and 'time or logic bombs'.

However, in the event that fire and/or explosion results from any of the matters described in this Exclusion, this Policy, subject to all its terms, will cover Damage ccurring during the Period of Insurance to the Interest Insured directly caused by such fire and/or explosion. The basis of valuation shall be the cost of blank Electronic Data processing media plus the cost of copying the Electronic Data from back-up or from originals of a previous generation. These costs will not include research and engineering or any costs of recreating, gathering or assembling such Electronic Data. If the media is not repaired, replaced or restored, the basis of valuation shall be the cost of the blank media. However, this Policy does not insure any amount pertaining to the value of such Electronic Data to the Insured or any other party, even if such Electronic Data cannot be recreated, gathered or assembled.

11) Cessation of works Damage solely due to total unscheduled cessation of work exceeding 60 days against which the Insured shall have failed to take reasonable precautions to protect the Interest Insured and to avoid or diminish the amount of such damage. However, if the Interest Insured have been maintained and reasonable loss minimisation measures have been taken, then such loss or damage shall be automatically covered during the period of cessation of work.



EXTENSIONS TO SECTION A

1) Progress Payments At the request of the Named Insured progress payments on account of any claim payable under this Policy will be made by the Insurer to the Named Insured, or other designated Loss Payee, at such stages during the period of the Insured Contract as may be mutually agreed upon and where necessary to facilitate the making of such payments upon the production of an interim report by the loss adjuster (if appointed) provided that such payments are deducted from the finally agreed claim settlement figure.

2) Run-Off In the event of this Policy being cancelled or not renewed, at the option of the First Named Insured cover under this Policy shall continue uninterrupted in respect of all Insured Contracts commenced prior to the date of such cancellation or non renewal and shall remain in force for each Insured Contract until expiry of the Maintenance/Defects Liability Period of each Insured Contract subject to pro-rata additional premium being payable.

3) Nominated Loss Adjusters

• Cunningham Lindsey

• Crawford & Co

4) Primary Insurance The Insurer agrees that this Policy will act as primary insurance with respect to the interest of the Named Insured, and any other insurance or self-insurance arrangements maintained by the Named Insured is excess to and not contributory with this Policy.



DEFINITIONS TO SECTION A

The following definitions apply throughout this Policy:

1) Construction Plant and Equipment means:

a) all construction plant, tools and equipment of every description including spare parts, whether owned, hired, occupied or held in trust or on commission by or under the care, custody or control of the Named Insured or for which the Named Insured is responsible or has agreed to insure or in which the Named Insured has an insurable interest;

b) the Named Insured’s employees’ tools and equipment.

2) Insured Contract means the contracts or agreements described in the Schedule, and includes any sub-contract or sub-agreement entered into pursuant to such contract or agreement.

3) Construction Period means the period described in any Insured Contract for the provision of works or services including any testing and commissioning period.

4) Damage means physical loss, damage or destruction, with Damaged having the corresponding meaning.

5) Estimated Contract Value means the cost of construction as was estimated at the time of negotiation, commencement or award of any Insured Contract plus the amount of Principal Supplied Property (if any).

6) Interest Insured means:

a) the permanent and/or temporary works, materials and supplies (including Principal Supplied Property),

site buildings, hutments or camps including all associated contents and all other property of every kind

and description whether owned, occupied or held in trust or on commission by or under the care

custody or control of any of the Insured or for which any of the Insured is responsible or for which any

of the Insured has agreed to insure, or in which any of the Insured has an insurable interest and which

is used or is to be used in relation to completion of the works or services provided or being provided

under any Insured Contract;

b) existing property;

c) Construction Plant and Equipment.

7) Occurrence means an event, including continuous or repeated exposure to substantially the same general conditions, which results in Damage to the Interest Insured neither expected nor intended by the Insured.

8) Period of Risk Item1 – Contract Works & Item 2 – Existing Property

The Period of Risk shall commence the later of the commencement of the Period of Insurance and the commencement of any Construction Period and shall remain in full force and effect until the earliest of the following times:

a) when all operations to be performed by or on behalf of the Insured under the Insured Contract have

been completed;

or



b) when all operations to be performed by or on behalf of the Insured at that site of the operations have

been completed;

or

c) in respect of that portion of the works only which has been put to its intended use by any person or

organisation other than another insured contractor or sub - contractor engaged in performing

operations for a Principal as part of the same Insured Contract.

or

d) the expiry of the Period of Insurance

Provided that the Period of Risk may be extended in accordance with Memoranda 8 (Taken Into Use)

Provided always that a Period of Risk shall automatically include the cover provided by Memorandum 2 (Defects Liability Period).

Item 3 – Constructional Plant and Equipment & Item 4 – Employees Personal Tools and Effects

The Period of Risk shall be the Period of Insurance

9) Principal Supplied Property

means any property of whatsoever nature or description as may be supplied by or on behalf of a principal in connection with the Project.



SECTION B – PUBLIC & PRODUCTS LIABILITY

1) Insuring Clause

a) The Insurer will pay to or on behalf of the Insured, subject to the Limit of Indemnity, all sums that the Insured shall become legally liable to pay as damages and/or compensation in respect of or consequent upon:

i. Personal Injury to any person;

ii. Property Damage;

iii. Advertising Liability,

iv. obstruction, loss of amenities, trespass, nuisance, interference, infringement of light or air, denial of access or any like cause,

sustained during the Period of Insurance as a result of an Occurrence happening and arising in connection with the Business, Insured Contracts, Completed Operations or the Insured’s Products within the Territorial Limits except as hereinafter excluded.

b) In addition to the above, the Insurer will:

i. defend in the Insured’s name and on the Insured’s behalf any claim or legal action against the Insured seeking compensation on account of any or all of the Occurrences listed in 1)a) above, even if the action is groundless false or fraudulent and the Insurer will investigate, negotiate and settle any claim or legal action as it sees fit;

ii. pay all expenses incurred by the Insurer and all costs taxed against the Insured in any such action, and all interest accruing after entry of judgment until the Insurer has paid, tendered or deposited in court such part of the judgment as does not exceed the available Limit of Indemnity;

iii. reimburse the Insured for all reasonable expenses incurred by the Insured with the prior written consent of the Insurer, such consent not to be unreasonably withheld, in connection with the defence of a claim or legal action;

iv. pay reasonable expenses incurred by the Insured for first aid to others at the time of Personal Injury caused by an Occurrence (other than medical expenses prohibited by section 126 of the Health Insurance Act and any similar or amending legislation);

v. reimburse the Insured for all reasonable expenses incurred by the Insured for temporary repair and/or protection and/or shoring up of property made necessary as a result of an Occurrence;

vi. pay all legal costs incurred by the Insured with the consent of the Insurer for representation of the Insured at:

(1) any coroner’s inquest or inquiry;

(2) any proceedings in any court in connection with liability insured under this Policy;

(3) any court in connection with any alleged or actual breach of statutory duty resulting in Personal Injury or Property Damage which may be the subject of cover under this Policy.

vii. pay all legal costs incurred by the Named Insured with the consent of the Insurer in relation to any Occurrence which may lead to proceedings for alleged or actual breach of any Health and Safety or similar legislation arising from Personal Injury the subject of indemnity under this Policy, or which would have been the subject of indemnity under this Policy but for the operation of Exclusion 1 (Workers’ Compensation / Employer’s Liability).

The amounts listed above are payable by the Insurer in addition to the applicable Limit of Indemnity.

c) Provided that:



i) the Insurer will not be obliged to pay any claim or judgment or to defend any claim or legal action after the Limit of Indemnity has been exhausted by the payment of judgments or settlements;

ii) if a payment exceeding the Limit of Indemnity has to be made to dispose of a claim, the Insurer’s liability to pay any costs, expenses and interest under this Policy will be limited to that proportion of those costs, expenses and interest as the Limit of Indemnity bears to the amount paid to dispose of the claim.



EXTENSIONS TO SECTION B

Subject to the Definitions, Exclusions, Conditions and Endorsements contained herein the Insurer will indemnify the Insured in connection with the Business, Insured Contracts, Completed Operations or the Insured’s Products against all sums that any of them shall become legally liable to pay:

1) Social Functions / Activities In respect of the attendance at and/or the arrangement of social functions and/or social activities in connection with the Insured Business including the interests of other parties that the Insured has agreed to indemnify.

This Policy shall also indemnify any visitor or guest whilst attending such social functions and/or social activities arranged by the Insured to the extent that;

a) the Insured elects to allow such visitor or guest to have the benefit of this Policy, and

b) such visitor or guest is not entitled to indemnity for the loss under any other policy of insurance.

2) Health and Safety In respect of legal costs and expenses incurred in the defence of any criminal proceedings brought for a breach of any health and safety (or other similar) legislation, if such breach was committed during the Period of Insurance.

Provided that this Extension does not apply to:

a) proceedings relating only to matters affecting the safety, health or welfare of Employees of the Insured;

b) fines or penalties imposed by a court;

c) such costs incurred without prior approval of the Insurer, such approval shall not be unreasonably or vexatiously withheld.

3) Overseas Personal Liability In respect of any liability incurred by any:

a) director of the Insured;

b) Employee of the Insured, and/or

c) member of the said director’s or Employee’s family who is travelling with the said director or Employee,

in their personal capacity while the said director or Employee is temporarily outside their normal country of domicile and in the course of the performance of the Business.



EXCLUSIONS TO SECTION B

The Insurer shall not be liable for any claim in respect of:

1) Workers’ Compensation / Employers Liability Personal Injury sustained by any person arising out of and in the course of employment of such person by the Insured where the Insured’s legal liability is compulsorily insurable under workers' compensation or employers liability or similar law in any country in the world in which such person is employed.

Provided that this Exclusion shall not apply to:

a) subrogation rights exercised against the Insured by any workers’ compensation insurer, state social security or similar scheme;

b) any liability of others which has been assumed by the Insured under contract;

c) any other liability to the extent that it is not insured by the compulsory insurance.

2) Aircraft / Waterborne Craft Liability arising out of the ownership, possession or use by or on behalf of the Insured of any:

a) aircraft or hovercraft;

b) waterborne craft in excess of 10 metres in length and/or which can travel at 17 knots or faster under its own power.

Provided that this Exclusion does not apply to liability arising out of:

I. construction plant or equipment or any items under this Policy whilst temporarily mounted upon any marine craft or vessel(s);

II. vessel(s) operated by any independent contractor(s); III. unmanned aerial drones when used for commercial surveys, photographic or similar activities

operating in accordance with Civil Aviation Safety Authority regulations.

3) Own Property, Custody, Control Property Damage to property:

a) owned by the Insured; or

b) held in trust or in the custody or control of the Insured (other than any premises which are leased, hired or rented to the Insured).

Provided that this Exclusion shall only apply to the extent that such Property Damage is insured under the Named Insured’s contract works insurance policy or other similar policy covering such property, where the Insured is indemnified thereunder for such Property Damage.



4) Contract Works Property Damage to or the costs incurred by anyone in removing, repairing, rectifying, replacing or re-applying any of the:

a) Contract Works; or

b) Insured's Products.

Provided that this Exclusion does not apply to resultant loss of or damage to any completed Contract Works or to the Insured's Products caused by any defect therein but shall be limited to the costs of making good such defect.

5) Fines, Penalties and Liquidated Damages a) Any fines, penalties, punitive, exemplary or aggravated damages; or

b) The Insured’s own liquidated damages or penalties incurred under contract, unless proved that such liability would have existed in the absence of that liquidated damage or penalty

6) Professional Indemnity Liability arising out of design, specification, advice or supervision given or undertaken for a specific fee.

Provided that this Exclusion does not apply to the rendering of or failure to render first aid or medical services on the Site by medical persons employed by the Insured.

7) Pollution or Contamination Pollution or Contamination unless caused by a sudden, identifiable, unintended and unexpected incident that occurred in its entirety at a specific time and place during the Period of Insurance.

8) Asbestos a) Liability directly or indirectly caused by or alleged to have been caused by or contributed to in whole

or in part by or arising from the existence of or exposure to asbestos and/or any asbestos containing materials.

b) Any obligation to defend (or any Defence Costs arising from) any claim or suit against the Insured alleging liability resulting from the above.

9) Vehicles Personal Injury or Property Damage caused by the Insured’s use of any motor vehicle, other than as a tool of trade:

a) in respect of which there was, at the time of the event giving rise to a claim, a statutory obligation to effect insurance or to contribute to a fund but only to the extent that such insurance or fund is required to provide indemnity;

b) to the extent permitted by law, which is insured under a non-statutory motor vehicle insurance arranged by the Insured.

Provided that this Exclusion does not apply to Personal Injury or Property Damage arising from the:

i) delivery or collection of any goods to or from any motor vehicle;

ii) loading or unloading of any motor vehicle;

iii) use of any mobile plant, machinery or lifting apparatus on any site where the Insured is undertaking any work or at any premises owned, occupied or used by the Insured or within 100 metres of the site where it is or has been working or where it is normally stored;

iv) use by Employees or other persons in the course of the Insured’s Business of any motor vehicle not owned, leased or hired by the Insured and not required to be insured by them by virtue of any Act or Ordinance relating to it’s use;

v) weight of any motor vehicle, trailer or load carried thereon, which causes damage to any bridge, weighbridge or road;

vi) use of any motor vehicle within the boundaries or which is normally used or operated within the boundaries of any property owned, leased or used by the Insured;



vii) damage to any motor vehicle or trailer (not belonging to or used by the Insured) in the physical or legal control of the Insured where such damage occurs whilst any such vehicles are in a car park owned or operated by the Insured.

10) Cyber Liability Any liability arising out of or in any way connected with:

a) total or partial destruction, distortion, erasure, corruption, alteration, misuse, misinterpretation or misappropriation or other use of Electronic Data;

b) error in creating, amending, entering, deleting or using Electronic Data;

c) total or partial inability or failure to receive, send, access or use Electronic Data for any time or at all,

unless caused by Personal Injury or Property Damage or Advertising Liability.

11) Advertising Liability

Advertising Liability for:

a) failure to perform a contract, but this shall not relate to claims for unauthorised appropriation of ideas based upon alleged breach of an implied contract;

b) infringement of registered trade mark, service mark, or trade name, other than titles or slogans, by use thereof on or in connection with goods or services, sold, offered for sale of advertised;

c) incorrect description of any article or commodity;

d) mistake in advertised price.

12) Product Recall Any liability or expense arising out of or in any way connected with the withdrawal, recall, inspection, repair, adjustment, replacement, removal, cost of investigation, disposal or loss of use of any Products or any property of which the Insured’s Products form a part where such Insured’s Products or property are recalled or withdrawn from the market under Division 3 in Schedule 2 of the Competition and Consumer Act 2010 (Cth) because of any known, alleged or suspected defect or deficiency in such Products.



DEFINITIONS TO SECTION B

1) Advertising Liability means liability for compensation arising from:

a) unintentional libel, slander or defamation;

b) infringement of copyright or title or slogan;

c) piracy, plagiarism, unfair competition or idea misappropriation;

d) invasion of the right of privacy,

committed or alleged to have been committed in any advertisement, publicity article, broadcast or telecast and arising out of the Insured’s advertising activities during the Period of Insurance.

2) Business means the Business as described in the Schedule and includes the provision and management of canteen, social, sports and welfare organisations for the benefit of the Insured's Employees, first aid, security, fire and ambulance services, and private work undertaken with the consent of the Insured by any Employee of the Insured.

3) Completed Operations means contracts that have been completed at the earliest of the following times:

a) When all operations to be performed by or on behalf of the Insured under the contract have been

completed;

b) When all operations to be performed by or on behalf of the Insured at the site of the operations have

been completed;

c) When the portion of the work out of which the Personal Injury or Property Damage arises has been

put into its intended use by any person or organisation other than another contractor or sub-

contractor engaged in performing operations for a principal as part of the same project work.

Works which may require further service, maintenance, correction, repair or replacement because of any defect or deficiency but which are otherwise completed shall be deemed completed.

4) Contract Works means the permanent and/or temporary works, materials and supplies used or to be used in relation to completion of any Insured Contract, including any existing property and any construction plant and equipment, which are collectively the subject of cover under the Named Insured’s contract works material damage insurance policy or other similar policy covering such property.

5) Defence Costs means all costs, fees and expenses (including loss assessors' fees) incurred and payable by the Insured in the defence or settlement of any claim against the Insured

6) Electronic Data means facts, concepts and information converted to a form usable for communications, display, distribution, interpretation, or processing by electronic or electromechanical data processing or electronically controlled equipment connected to the world wide web.

7) Employee means:

a) any person under a contract of service or apprenticeship with the Insured;

b) any labour master or any labour only sub contractor or person supplied by any of them;

c) any self-employed person working for the Insured;



d) any person under a work experience or training scheme or similar arrangement with the Insured;

e) any person hired or borrowed by the Insured from another employer working for the Insured in

connection with the Business;

f) any other person working for or on behalf of the Insured who, by reason of any contract or agreement

or at law, is deemed to be in the employment of the Insured.

8) Health Insurance Act means the Health Insurance Act 1973 (Cth) as amended, re-enacted or replaced, and includes any subordinate legislation issued under it.

9) Insured Contracts means all contracts and agreements in progress or commencing during the Period of Insurance and includes any sub-contract or sub-agreement entered into pursuant to such contract or agreement

10) Insured's Products

means any property after it has left the custody or control of the Insured which has been prepared, specified, formulated, manufactured, constructed, installed, sold, supplied, distributed, treated, serviced, altered or

repaired by or on behalf of the Insured..

11) Occurrence means an event, including continuous or repeated exposure to substantially the same general conditions which results in subsequent Personal Injury and/or Property Damage and/or Advertising Liability and/or obstruction, loss of amenities, trespass, nuisance, interference, infringement of light or air, denial of access or any like cause, neither expected nor intended from the standpoint of the Insured.

All events of a series consequent upon or attributable to one source or original cause shall be deemed to be one Occurrence.

All Advertising Injury arising out of the same injurious material or act (regardless of frequency or repetition thereof, the number and kind of media used or the number of claimants) are deemed one Occurrence.

12) Personal Injury

includes, but is not limited to:

a) death, bodily injury, sickness, disease, disability, shock, fright, assault, battery, mental anguish and/or mental injury;

b) false or wrongful arrest, wrongful detention, wrongful imprisonment, malicious prosecution or malicious humiliation;

c) the publication or utterance of libel or slander or of other defamatory or disparaging material unless arising out of Advertising Liability;

d) wrongful entry or eviction or other invasion of the right occupancy or possession of land;

e) loss of consortium, loss of servitium, and any loss of dependency or support.

13) Pollution or Contamination means the actual, alleged, threatened, discharge, dispersal release or escape of any solid, liquid, gaseous or thermal irritant or contaminant, including but not limited to smoke, vapour(s), soot, fumes, acids, alkalis, chemicals and waste into or upon land, the atmosphere, or any watercourse or body of water. Waste includes material to be recycled, reconditioned or reclaimed.

14) Property Damage means:

a) physical loss or destruction of or damage to property including the total or partial loss of use thereof or the consequential loss resulting therefrom;

b) total or partial interruption of or interference with or loss of use of or deprivation of premises, property, services, facilities, trade or vehicular or pedestrian traffic.



15) Competition and Consumer Act means the Competition Act 2010 (previously known as the Trade Practices Act 1974) as amended, re-enacted or replaced, and includes any subordinate legislation issued under it.

16) Worker to Worker Liability means:

a) legal liability of the Insured in respect of recoveries of any payments by any workers’ compensation insurer under the provisions of any workers’ compensation legislation or policy, or at common law;

b) a claim made by an injured worker (as defined by the relevant workers’ compensation legislation) against any Insured other than the worker’s direct employer.



GENERAL EXCLUSIONS APPLICABLE TO SECTIONS A AND B

The Insurer shall not be liable for any claim in respect of:

1) War & Terrorism Damage, liability, costs or expenses 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 Damage:

a) war, invasion, acts of foreign enemies, hostilities or warlike operations (whether war be declared

or not), civil war, rebellion, revolution, insurrection, civil commotion assuming the proportions of or

amounting to an uprising, military or usurped power; or

b) any act of terrorism.

For the purpose of this Exclusion an act of terrorism means an act, including to the use of force or violence and/or the threat thereof, of any person or group(s) of persons, whether acting alone or on behalf of or in connection with any organisation(s) or government(s), committed for political, religious, ideological or similar purposes including the intention to influence any government and/or to put the public, or any section of the public, in fear.

The Insurer shall also not be liable for any claim in respect of Damage, costs or expenses of whatsoever nature directly or indirectly caused by, resulting from or in connection with any action taken in controlling, preventing, suppressing or in any way relating to (a) and/or (b) above.

If the Insurer alleges, acting reasonably, that by reason of this Exclusion, any Damage, costs or expenses are not covered by this insurance the burden of proving the contrary shall be upon the Insured.

However, provided there be no state of war in Australia, this Exclusion shall not apply to Damage or defect or liability occasioned by missiles, mines, bombs and/or other explosive devices not discovered by the Insured at the time of commencement of the Insured Contract.

In the event any portion of this Exclusion is found to be invalid or unenforceable, the remainder of it shall remain in full force and effect.

2) Nuclear, Radiation, Radioactive Contamination Damage (including defect or liability) directly or indirectly to the Interest Insured or Personal Injury or Property Damage to any property, caused by and arising from or in consequence of or contributed by nuclear weapons material or by ionising radiations or contamination by radioactivity from any nuclear fuel or from any nuclear waste from the combustion of nuclear fuel.

For the purpose of this Exclusion only, combustion shall include any self sustaining process of nuclear fission.

This Exclusion shall not apply to Damage (including defect or liability) or Personal Injury or Property Damage, arising from any of the Insured's operations or activities which include the use of radioactive material in weld radiography nucleonic density meters and all other possible applications or radio-isotopes used for x-raying and testing.

3) Sanctions the provision of any cover, payment of any claim or provision of any benefit to the extent that the provision of such cover, payment of such Claim or provision of such benefit would expose the Insurer to any sanction, prohibition or restriction under United Nations resolutions or the trade or economic sanctions, laws or regulations of the European Union, Commonwealth of Australia, United Kingdom or United States of America.



CONDITIONS APPLICABLE TO SECTIONS A AND B

1) Multiple Insureds and Cross Liability

a) If the Insured comprises more than one insured party each operating as a separate and distinct entity

then, save as provided in this Multiple Insureds clause, cover shall apply in the same manner and to

the same extent as if individual policies had been issued to each such insured party provided that the

total liability of the Insurer to all of the insured parties collectively shall not exceed the Sum(s) Insured/

Limit of Liability or any other applicable Sub-Limit.

b) It is understood and agreed that any payment(s) by the Insurer to any one or more such insured parties

shall reduce to the extent of that payment the Insurer's liability to all such parties arising from any one

event giving rise to a claim under this Policy and (if applicable) in the aggregate.

c) It is further noted and agreed that a notice of claim given to the Insurer by any Insured, will be accepted

by the Insurer as notice of claim given by all other Insureds.

d) It is understood and agreed that the insured parties will at all times preserve and enforce the various

contractual agreements entered into by the insured parties and the contractual remedies of such

parties in the event of Damage.

e) It is agreed that a breach of condition or warranty, non-disclosure, misrepresentation, act or omission

committed by one Insured shall not prejudice the right to indemnity of any other Insureds.

f) The Insurer shall waive all rights of subrogation that they may have or acquire against any Insured.

2) Severability The Insurer agrees that any act, neglect, fraud, misrepresentation, misdescription, non disclosure or breach of Condition or warranty by any party comprising the Insured whether occurring prior to or during the Period of Insurance, shall not prejudice, reduce or render void the rights of the other parties comprising the Insured who are themselves not guilty of such act, neglect, fraud, mis-representation, misdescription, non disclosure or breach of Condition or warranty.

Without limiting the above, the Insurer agrees that any rights arising pursuant to section 60 of the Insurance Contracts to cancel this Policy shall only be exercised in respect of the party whose acts or omissions have given rise to the right.

3) Breach of Conditions Any breach of the Conditions of this Policy without the knowledge and consent of the Insured or beyond the control of the Insured shall not prejudice this insurance. Notice in writing shall be given to the Insurer upon such breach coming to the Insured’s knowledge and such additional premium as may be reasonably required by the Insurer shall be paid as from the date of the first breach, subject to any provisions of the Insurance Contracts Act . The breach of any Condition of this Policy will only prejudice the insurance provided by this Policy in respect of the risk affected by such breach.



4) Notification

a) The Insured shall address all notices or communications to: Arthur J. Gallagher for onward

transmission to the Insurer and such notices or communications shall be deemed to have been given

to all Insurers.

b) The Insurer shall address all notices or communications to:

Arthur J. Gallagher for onward transmission to the Insured and such notices or communications shall

be deemed to have been given to all Named Insureds.

5) Assignment The assignment of rights under this Policy by a Named Insured is permitted, subject to prior agreement by the Insurer, whose agreement shall not be unreasonably withheld.

6) Hold Harmless Agreements Where in connection with or in relation to the Business, Insured Contracts, Completed Operations or the Insured’s Products the Insured enters into an agreement whereby the Insured shall indemnify and/or hold harmless and/or release from liability another party in respect of any liability hereby insured against, it is understood and agreed that the rights of that Insured under this Policy shall not be prejudiced or invalidated by the relevant Insured agreeing to such provision, and that the indemnity and/or hold harmless and/or release from liability given by the relevant Insured shall be equally binding upon the Insurer.

7) Subrogation The Insured shall upon being indemnified under this Policy in respect of any Damage or liability at the request and at the expense of the Insurer do and concur in doing and permit to be done all such acts and things as may be necessary or reasonably required by the Insurer for the purpose of enforcing any rights and remedies, or for obtaining relief or indemnity from other parties to which the Insurer shall become entitled or subrogated.

8) Claims Procedures The Insured shall upon receiving notice, or becoming aware of any claim or event or Occurrence giving rise or likely to give rise to a claim under this Policy:

a) Give notice thereof to the Insurers via Arthur J. Gallagher.

Additional requirement for Section B

(1) as soon as is reasonably practicable where the estimated quantum is in excess of 50% of the Deductible;

(2) immediately where it involves any of the following, irrespective of estimated quantum:

I. litigation,

II. death,

III. brain damage,

IV. amputation of any body part,

V. spinal injuries (including but not limited to quadriplegia or paraplegia),

VI. fractures, and/or

VII. injury to a minor.

b) At the expense (Section B only) of the Insurer, and, in respect of both Sections, take all such steps

as are reasonable to mitigate the actual or potential amount of the claim.

c) As soon as reasonably practicable thereafter render a claim in writing to the Insurer via Arthur J.

Gallagher.

d) Section B - Not make any admission, offer, promise or payment in connection with any claim made

against the Insured, without the consent of the Insurer.



e) Produce to the Insurer or to any person officially designated by it all such details, proofs and

particulars as may be reasonably required by it and permit extracts and copies thereof to be made

and retained.

f) Allow the Insurer full discretion in the conduct of any proceedings in connection with any claim, and

provide all such information and assistance as the Insurers may reasonably require in the

prosecution, defence or settlement of any claim, and allow the Insurers at their own expense to

prosecute or appeal in the name of the relevant Insured and for their own benefit any claim for

indemnity or otherwise.

The Insurer will accept notice of a claim by any Insured as notice by all Insureds.

Notwithstanding the foregoing, it is understood and agreed that any Insured shall be entitled to take immediate action reasonably required to avoid danger to persons or property and that such action shall in no way prejudice or invalidate the relevant Insured's position or entitlement with respect to any claim hereunder.

9) Precautions to Prevent Damage

In the event of actual or threatened loss, destruction or Damage likely to give rise to a claim under this Policy the Insured shall as soon as reasonably practicable (and at the expense of the Insurer for Section B) take all

reasonable steps to mitigate that actual or threatened loss, destruction or Damage.

10) Premium Adjustment The deposit premium paid by the Named Insured has been based on estimates at the commencement of the Period of Insurance. Within 90 days from the end of the Period of Insurance, the Named Insured shall declare the actual turnovers, value of Principal-supplied materials, values of Constructional Plant and Equipment and Existing Structures insured and the deposit premium will be adjusted in accordance with the agreed rates. Any additional amount will be payable by the Named Insured to the Insurer and any refund premium will be payable by the Insurer to the Named Insured.

11) Cancellation This Policy may be cancelled by the Named Insured by giving written notice of cancellation to the Insurer. After cancellation by the Named Insured, the Named Insured will be entitled to a pro rata refund of premium for the unexpired Period Insurance.

The Insurer may cancel this Policy as permitted by section 60 of the Insurance Contracts Act by serving 60 days notice in writing in accordance with section 59 of the Insurance Contracts Act to the Named Insured. After cancellation by the Insurer the Named Insured will be entitled to a prorata refund of premium for the unexpired Period of Insurance.

12) Headings Headings have been included for ease of reference, and the terms of this Policy are not to be construed or interpreted by reference to such headings.

13) Insolvency or Bankruptcy The insolvency or bankruptcy of the Insured shall not release the Insurer from any of the obligations assumed under this Policy.

14) Currency All amounts shown in this Policy are in Australian Dollars.

15) Difference in Conditions This Policy shall automatically apply:

a) in excess of any indemnity provided under, and/or

b) to the extent that indemnity is not provided by the terms and conditions of

any contract works or public liability insurance policies arranged by the Insured or any other party specifically in relation to any Insured Contract, and shall exclude any Damage or liability to the extent to which the Insured is indemnified by such more specific insurance(s)



16) GST In this clause, a word or expression defined in the GST Act has the same meaning as in that Act.

a) Unless stated to the contrary, and otherwise as provided in this clause, all amounts used in this

Agreement, including amounts and variables in formulas, shall be exclusive of GST.

b) If a party makes a supply pursuant to the Agreement, and GST is payable on that supply, the

consideration for the supply (GST exclusive consideration) is increased by an amount equal to the

GST exclusive consideration multiplied by the rate of GST imposed by the GST law on that supply, or

part thereof, except where the recipient of the supply is liable under the GST law to pay the GST on

that supply.

c) If a party must reimburse or indemnify another party for a loss, cost or expense, the amount to be

reimbursed or indemnified is first reduced by an amount equal to any input tax credit the other part is

entitled to in respect of the loss, cost or expense, and then increased in accordance with clause 13.3

where applicable.

d) A party need not make a payment for a taxable supply made pursuant to this Agreement until it

receives a tax invoice for the supply to which the payment relates.

If an adjustment of GST is required as a result of an adjustment event in respect of a supply made pursuant to this Agreement, then:

a) a corresponding adjustment of GST payable under this Agreement must be made between the

parties within 21 days after the end of the tax period in which the adjustment is attributable, and

b) the supplier, if obligated to do so under the GST law, must issue an adjustment note within 21 days

after the end of the tax period in which the adjustment is attributable.



DEFINITIONS APPLICABLE TO SECTIONS A AND B

1. Insurance Contracts Act

means the Insurance Contracts Act 1984 (Cth) as amended, re-enacted or replaced, and includes any subordinate legislation issued under it.

2. Defects Liability Period

means the period during which the Insured is obliged or legally liable to rectify defects, shrinkages, errors, omissions or other faults and/or to complete the maintenance or other obligations under the Insured Contract.

3. Policy

means the Schedule, Definitions, Conditions, Exclusions, Endorsements, Extensions and any other terms herein contained or endorsed hereon which are to be read together.

4. Named Insured

means the Party listed in the Schedule as the ‘Named Insured’.

5. Insurer

means the ‘Insurer(s)’ listed in the Schedule for their respective proportions.

6. Schedule

means the ‘Schedule’ document that sets out the details of the Policy.

7. Insured

means the Named Insured and Additional Insured.

8. Additional Insured

means the ‘Additional Insured’ listed in the Schedule.

Arthur J. Gallagher & Co (Aus) Limited. Operates under AFSL No. 238312. Any advice provided in this document does not consider your objectives, financial situation or needs. You should consider if the insurance is suitable for you and read the Product Disclosure Statement (PDS) and Financial Services Guide (FSG) before buying the insurance. If you purchase this insurance, we may charge you a fee for our service to you. Ask us for more details before we provide you with any services on this product. PDS available on request. Our FSG is available on our website, www.ajg.com.au. Arthur J. Gallagher & Co (Aus) Limited. ABN 34 005 543 920, Level 12, 80 Pacific Highway, North Sydney, NSW 2060.

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