The following are key exclusions of the policy:
- Fines and Penalties – for example, liability arising from a fine which the court imposed on a company for maintaining poor safety standards.
- Deliberate acts by the Insured.
- Performance Warranties – failure to meet contractual obligations; e.g. the Insured incurs a liability to their customer for failing to deliver goods on time.
- Admission of Liability – if the Insurer’s liability increases because the Insured admitted to being at fault, then the policy would not pay for the increased liability.
- Defamation – saying or writing untrue and harmful statements is not covered. Defamation cover is available as an optional extension.
- Insurance covered by other policies or by extensions to this policy that were not selected.
- Claims arising out of a nature of business which is not specified in the policy schedule. The correct nature of the Insured’s business must be detailed on the policy schedule. If, for example, the Insured’s policy-stated business is “painting buildings”, then there would be no cover for the Insured’s work as a manufacturer of chemicals.
- A material change to the Insured’s risk of which the Insurers were not advised
- Claims arising out of war, terrorism, nuclear materials or asbestos
- Employment – no cover for injury arising out of employment unless the relevant extension has been selected
- Claims brought against directors and officers for failing to run the company properly (this cover is provided in terms of a Directors’ and Officers’ Liability policy).
- Possible claims that the Insured was aware of before the policy started
- Events giving rise to a claim which occurred prior to the Retroactive Date
- Claims that were not made against the Insurer during the Period of Insurance.
- Excess – that portion of the claim falling within the Excess is paid by the Insured
- Liquidated Damages
- Damage arising out of the confiscation of property by government
- Liability arising out of advice of a professional nature given for a fee
- Damage arising out of electrical or magnetic fields
- Aircraft – claims arising out of working on or operating aircraft
- Claims brought against the Insured in the courts of the USA and Canada or arising out of operations domiciled there
- Employee dishonesty – claims arising out of the dishonesty of employees, directors, partners, etc.