Page 50 - Sectional Title Policy Wording

SPECIFIC EXCEPTIONS
1. The Company shall not be liable for:
1.1 loss resulting from or contributed to by any Defined Event by:
1.1.1 any partner in or of You to the extent that such partner would benefit by indemnity granted under this Policy;
1.1.2 any principal, director or member of You unless such principal director or member is also an employee;
1.1.3 any employee from the time You shall become aware that such employee has committed any fraud or dishonesty;
1.1.4 any managing agent which doesn't hold a valid Fidelity Guarantee and Professional Indemnity Insurance policy.
1.2 any consequential losses of any kind following losses referred to under defined events.
2. Loss caused from the time that You have Discovered that an Employee or Third Party, whether acting alone or in Collusion, has committed Theft, fraud, dishonesty or any similar or like act or acts which would give rise to an indemnity under this Policy.
3. Fines, penalties, taxes or punitive damages of any nature.
4. Unintentional acts, errors or omissions by You, Your Employees, directors, officers, partners, shareholders or members.
5. In respect of Defined Events, any Loss arising from or relating to, whether directly or indirectly:
5.1 any act or acts involving credit agreement, extension of credit, hire purchase agreement, loan, loan transaction, lease or rental agreement, invoice, account, an agreement or acknowledgment or evidence of debt, payments made or withdrawals from any customer account involving items which are not finally paid for any reason; or
5.2 any act or acts involving trading or dealing in shares, stocks, equities, bonds, unit trusts, securities, commodities, derivatives, foreign exchange, debentures, or in respect of any of the foregoing any like or similar instrument;
Unless in respect of such Loss, You can prove that such act or acts were committed by an Employee with the clear and unequivocal intention to cause You a Loss and results in a dishonest personal financial gain for that Employee or any other person or entity, or was committed with the manifest intent or the clear and unequivocal intent to result in a dishonest personal financial gain for the Employee or other person or entity.
6. Loss of, or arising from the accessing of, any confidential or proprietary information including but not limited to trade secrets, know how, intellectual property including but not limited to patents, copyrights and trademarks, computer programs or customer information.
7. Loss or damage caused by fire or arising from the malicious, wilful or wanton acts of Employees which are coverable under a fire insurance policy or similar insurance.
8. Where You are a company, close corporation or partnership and any principal, shareholder, director, member or partner thereof is involved or implicated in the Loss, Hollard will only be liable to the extent of the shareholding, participation, membership or other share of the other principals, shareholders, directors, members or partners of Yourself.
SPECIFIC CONDITIONS
1. You shall institute and/or maintain and continue to employ in every material manner all such systems of check and control, accounting and clerical procedures and methods of conducting his/her business as has been represented to Hollard, but You may:
1.1 1.2
change the remuneration and conditions of service of any employee;
in respect of any employee who is described in the Schedule by name, change his duties and position;
Commercial Crime
Page | 48
Sectional Title Insurance Policy Wording – Version 4 2023