ESTATE AGENTS PROFESSIONAL INDEMNITY INSURANCE

R60 per month R5 million cover..

LSG Insurance Services (Pty) Ltd in conjunction with Hollard Insurance Co Ltd have put together a Professional Indemnity Insurance scheme for Estate Agents which includes an option to reinstate the limit if necessary. Excess R5,000

What is covered?

Insurers will indemnify You in respect of claims made against You during the period of insurance for:

• Any negligent act, error, omission, misrepresentation, misstatement whenever or wherever committed or alleged to have been committed, by You;
• Any unintentional breach of confidentiality, trust, authority, privacy whenever or wherever committed or alleged to have been committed, by You;
• Any unintentional infringement of intellectual rights, names, title, marks, secrets, patents, ideas or possession, whenever or wherever committed or alleged to have been committed, by You;
• Any defamation by You;
• Any dishonest, fraudulent, malicious, criminal act or omission committed by You;
• The accidental destruction, loss, mislaying of or damage to, Third Party Property entrusted to You or in Your custody and control;
• Acting upon or dealing in or with any Third Party Documents or Third Party Property, in good faith, which subsequently is proven to have been forged, fabricated, stolen or otherwise tainted;

ESTATE AGENT PROFESSIONAL INDEMNITY POLICY

CREATED BY

THE HOLLARD INSURANCE COMPANY LIMITED

This Policy, the Scheduleand any endorsements attaching hereto, shall be read together and considered to be one contract and any word or expression to which a specific meaning has been attached in any of them, shall bear such meaning throughout. All words in bold typeface are to be read in conjunction with the Definitionsor Sections to which they refer.

In consideration of, and conditional upon, the prior payment of the Premium by or on behalf of Youand receipt thereof by or on behalf of Us, We are hereby bound to insure in accordance with the terms, Exclusions, Conditions and limitations contained within this Policy or forming part of any endorsement attaching hereto.

This Policy is conditional upon and will only come into effect following payment of the Premiumby You and receipt thereof by or on behalf of Us.

Wherever any reference is made to one gender it shall refer to the other gender provided the context may be read correctly by way of such substitution. Similarly singular may be read as plural and plural as singular.

1. Your Declaration
   You have declared to Us information in regard to Your business activities and Services that You provide, the revenue You generate annually, Your insurance claims history and other material information.
2. Our Declaration
   We have relied upon the truth of Your declaration in agreeing to issue this Policy and agree to honour Our undertakings in terms of this Policy and utilize Your declarations to determine theShould We discover that You have deliberately withheld or concealed any information or not disclosed material information in respect of Your riskWe reserve the right at Our sole discretion to
   • terminate or cancel this Policy from its inception; or
   • agree with You any prejudice Wehave suffered due to Your
3. Definitions
   • “Any one claim” shall mean all claims, regardless of their number or the identity of the claimants or whether attributable to separate contracts or mandates arising from or out of
     • the same negligent act error omission misrepresentation misstatement breach or infringement
     • one originating defamatory statement or utterance
     • the dishonest, fraudulent, malicious or criminal acts or omissions of any one person, or any number of persons acting in collusion
     • an originating cause of damage to, destruction, loss, mislaying or theft of or access to Third party property or Third Party documents
   • Circumstance – a Circumstance shall mean
     • Yourknowledge of facts which ought reasonably to lead You to the conclusion that a Claim orClaims may be made against You
     • the discovery of reasonable cause for suspicion of dishonesty, fraud, malicious or criminal acts on the part of anyone referred to as the Insured that might give rise to a Claim against You
     • the identification or instance of damage to, destruction, loss, mislaying or theft of or unauthorised access to Third Party Documents or Third Party Property.
   • Claim” or “Claims” shall mean
     • the receipt of a notice from anyone (including a verbal threat) of an intention to claim Damages from You
     • the receipt of a letter, summons or other Document claiming Damages fromYou
   • “Computer, Data and Electronic Systems” shall mean
     information and communication technology devices and facilities for the electronic storage, transmission, receipt, retrieval, and processing of computer software, data, and voice communications, and networking equipment or facilities which enable connection to other devices or networks.
   • “Costs and Expenses” shall mean
     • all amounts We spend or You spend with Our prior written approval, which will not be unreasonably withheld, in procuring Third Party services for the investigation, defence or settlement of any Claim
     • all amounts We spend in procuring services from You
     • expensesYou incur with Our prior written approval, which will not be unreasonably withheld, in the investigation, defence or settlement of any Claimor in the mitigation of the cost of or prevention of any Claim
       Costs and Expenses not covered
       All other amounts that You spend or expenses You incur in working with Us, including attendance at meetings with Us or Our representatives, shall not form part of any Costs and Expenses or the Limit of Indemnity.
   • “Damages” shall mean
     all amounts We may agree to pay to a third party on Your behalf or the amount of any Third Party judgment awarded against You
   • Documents” shall mean
     all documents and images no matter the storage medium but excluding computer operating and software programmes
   • “Excess” shall mean
     the amount shown in the Schedule to be borne by You at Your own expense in respect of the first part of Any one Claim
   • Inception Date” shall mean
     the date shown in the Schedule
   • “Insured”shall mean
     the entities named in the Schedule as the Insured and any predecessors of the Insured and provided all the fees for Services have been declared to Us to determine the Premium any subsidiary of the Insured or other entity accepted by Us.
   • “Insurer” shall mean
     The Hollard Insurance Company
   • “Internet Service Provider” shall mean
     an entity that provides services to anyone in accessing the internet via any Computer, Data and Electronic Systems
   • Limit of Indemnity” shall mean
     the Limit of Indemnity shown in the Schedule for Any one Claim(inclusive of Value Added Tax) that We are liable to pay Youarising out of Our Claims obligations in terms of this If the Limit of Indemnity is shown as being in the aggregate this will be our total liability for the Period of Insurance.
   • “Malicious Code” shall mean
     any Computer virus, Trojan Horse, worm, spyware, or other disabling, invasive or destructive Computer code
   • “Period of Insurance” shall mean
     the period stated in the Schedule
   • Policy”shall mean
     this document and any attachments hereto
   • Premium”shall mean
     the amount shown in the Schedule including Value Added Tax, being the consideration payable to Us for Our undertakings in terms of this Policy, which shall be paid to Us in terms of the Short-Term Insurance Act No. 53 of 1998
   • Property”shall mean
     any money, notes, papers, records, letters, of a physical nature having a tradable or commercial value
   • “Republic of South Africa” shall mean
     the geographical and jurisdictional area comprising the Republic of South Africa at the Inception Date of this Policy
   • “Retroactive Date” shall mean
     the date shown in the Schedule
   • “Schedule”shall mean
     the document headed “Schedule” attaching to this Policy
   • “Services”shall mean
     • all work performed for or advice given to Third Parties by You in the normal scope and conduct of Your business according to Your declaration to
     • Servicesdoes not include any activity in respect of any property manufactured, constructed, installed, sold, supplied, distributed, treated, serviced, altered or repaired by You or a Third Party on Your behalf
   • Terrorism
   • “Third Party” and “Third Parties” shall mean
     any person or juristic person who is not You or Us
   • Value Added Tax” shall mean
     the applicable tax applied to goods and services in terms of Act No. 89 of 1991
   • We”, “Our” and “Us” shall mean
     The Hollard Insurance Company Limited
   • You”and “Your” shall mean
     • Insuredstated in the Schedule
     • any current or former partner, member or Director of the Insured, in respect of any liability arising out of the business relationship with the Insured
     • any person who is or was under a contract of service with the Insured, in respect of any liability arising out of the business relationship with the Insured
     • any person who is or was a consultant to the Insured, provided that such consultancy fees retained by the consultant are or were declared to us for the purposes of determining the Premium
     • in the event of the death, incapacity or insolvency of any person stated above, his estate and/or legal representative.

4. Indemnity
   We agree to indemnify You subject to the terms, Exclusions andConditions of this Policy and provided You have paid the Premiumfor Claims first made against You during the Period of Insurance for Your legal liability to pay Damages to Third Parties arising out of the provision of Your Services after the Retroactive Date, up to the Limit of Indemnity, subject to the Excess and as a result of
   • any negligent act error omission misrepresentation misstatement whenever or wherever committed or alleged to have been committed, by You
   • any unintentional breach of confidentiality trust authority privacy whenever or wherever committed or alleged to have been committed, by You
   • any unintentional infringement of intellectual rights, names, title, marks, secrets, patents, ideas or possession, whenever or wherever committed or alleged to have been committed, by You
   • any defamation by You
   • any dishonest, fraudulent, malicious or criminal act or omission committed by a person referred to in the definitionYou provided that no indemnity shall be afforded to anyone committing or condoning such dishonest, fraudulent , malicious or criminal act or omission
   • the accidental destruction loss mislaying of or damage to, theft of or unintentional failure by You to prevent unauthorized access to, Third Party Documents or Third Party Property entrusted to You or in Your custody and control
   • acting upon or dealing in or with anyThird Party Documents or Third Party Property, in good faith, which subsequently is proven to have been forged, fabricated, stolen or otherwise tainted
5. Costs and Expenses
   We will also pay for Costs and Expenses which shall form part of the Limit of indemnity
   • in connection with Claims falling to be dealt with in terms of the Indemnity clause above
   • incurred by Us in assisting and representing You, or incurred by You in any regulatory or disciplinary enquiry or process provided the enquiry or process relates to Ourundertakings as defined in the Indemnity clause above
6. Documents
   We will also indemnify You for amounts You spend, with our prior permission, such permission not to be unreasonably withheld, in replacing or restoring business related Documents accidentally damaged, destroyed, lost, mislaid or stolen.The Indemnity provided shall not be in excess of the Limit of indemnity stated in the Schedule for this extension and shall form part of the overall Limit of Indemnity for the Period of Insurance.

Exclusions

We will not indemnify You against any Claims

1. for which You are entitled to indemnity under any other policy of Insurance or indemnity contract
2. for and/or arising out of injury to any person under a contract of employment or apprenticeship with You or under contract for the provision of labour only services to You where such injury arises out of the execution of such contract
3. arising out of
   1. Youragreement to pay fines penalties punitive liquidated or exemplary damages unless such payment constitutes Damages
   2. fines penalties punitive liquidated or exemplary damages imposed by any regulatory or judicial authority
4. arising out of any liability assumed by You by agreement or contract other than a contract for Services or unless such liability would have attached to Youin the absence of such agreement or contract
5. arising out of
   1. the failure of any investments, recommended by You, to perform either as predicted or at all. This exclusion shall apply to the failure of investments whether partly or as a whole and although not exclusively will apply to equities, securities, commodities, currencies, options and futures transactions
   2. any warranty guarantee or forecast given by You as to the potential performance of any investmentThis Exclusion shall not apply to Damages solely caused due to Youfailing to effect a specific investment transaction in accordance with specific prior instructions
6. arising out of any performance warranties given by You other than where it can be shown that You would have been liable in the absence of such warranties
7. arising out of Your failure to procure or arrange finance
8. arising out of Your deliberate failure to arrange or maintain insurance
9. made against You by Your holding or subsidiary companies or by any person or entity having a financial administrative or managerial influence on Youunless the Claim could have emanated from a Third Party
10. in respect of loss of or damage to
    1. Your Property
    2. Propertyof any kind other than Your legal liability arising in terms of the Indemnity clause in respect of Property
11. previously disclosed or notified or which should have been disclosed or notified as a Claim or Circumstanceunder any other policy of insurance or similar contract or guarantee preceding the Period of Insurance of this Policy
12. from any Services performed in any country whose laws fall under the auspices of the United States of America or Canada
13. resulting from any Claim brought in any Court under the laws of the United States of America or Canada or any order made anywhere in the world to enforce such judgment, award or settlement either in whole or in part.
14. against You arising out of Yourduties as a Director or Officer
15. arising out of Your insolvency
16. where You make a Claim fraudulently
17. for any Services You render as an Internet Service Provider
18. arising out of any Damages or Costs and Expenses awarded under the law of Decennial where such law imposes any liability that would not apply under the Laws of the Republic of South Africa
19. arising directly or indirectly from war, invasion, acts of foreign enemies, hostilities or warlike operations (whether war be declared or not), civil war, civil commotion, mutiny, military or popular rising, rebellion, revolution, insurrection, military or usurped power, acts of terrorism or violence, martial law or state of siege, acts or any attempted acts directed towards the overthrow of or protest against or furthering of any political aim or objective or social or economic change in the policies of any government, provincial, local or tribal authority or the act or order of any lawfully constituted authority in controlling, preventing, suppressing or in any other way dealing with any of the aforementioned occurrences, confiscation, nationalization or requisition or destruction of or damage to property by or under the order of any government or public or local authority.If We allege that by reason of this Exclusion there is no cover under this Policy the burden of proving the contrary shall rest with You
20. in respect of
    1. the death of, or bodily or mental injury to any person or loss of or damage to property directly or indirectly caused by seepage, pollution or contamination or the cost of removing, nullifying or cleaning-up seeping, polluting or contaminating substances, unless caused by a sudden, unintended and unexpected happening or arising out of Your Services
    2. the hazardous nature of Asbestos
21. in respect of any legal liability, loss, damage, destruction, cost or expense whatsoever or any consequential loss directly or indirectly caused by or contributed to by or arising from
    1. ionizing, radiations or contamination by radio-activity from any nuclear fuel or from any nuclear waste from the combustion of nuclear fuel
    2. material, nuclear fission or fusion, nuclear radiation
    3. nuclear explosives or any nuclear weapon
    4. nuclear waste in whatever form
       regardless of any other cause or event contributing concurrently or in any other sequence to the loss. For the purposes of this exclusion only, combustion shall include any self-sustaining process of nuclear fission.
22. arising by reason of the intentional introduction of Malicious Code by You or a Third Party into any Computer, Data and Electronic Systems.

Conditions

You must comply with the following Conditionsas they are conditions precedent to Our acceptance of liability in terms of this Policy

1. Youor Your insurance broker or intermediary must notify Us of any Claim or Circumstanceas soon as reasonably possible, in writing to
   The Hollard Insurance Company Limited
   O. Box 87419
   Houghton
   Johannesburg, 2041.
2. ShouldYou report a Circumstance to Us which subsequently results in a Claim, We confirm that this Policy shall be the correct policy to respond to such Claim when it is finally made. In other words when a Circumstance becomes a Claim such Claim will be dealt with by the Policy in force at the time the Circumstance was notified
3. Youshall not admit liability, nor settle, nor incur any Costs and Expenses for any Claimwithout Our prior consent. We will mutually agree with Youto settle or defend any Claim or to prosecute in Your Should agreement not be reached, however, We will make the final decision, at Our sole discretion, to settle, defend or prosecute. Youwill not be required to contest any legal proceedings unless a Senior Counsel, who will be mutually agreed upon by Us, shall advise that such proceedings should be contested
4. WhereYou are liable We may, at any time, pay You the Limit of Indemnity Any One Claim less any amounts already paid or pay You a lower amount than the Limit of Indemnity Any One Claim if the Claim may be settled for less. We shall then no longer be involved with or be liable any further for such Claim
5. Youwill at Your own cost render such assistance to Us or Our appointed representatives as We may require in order to investigate, defend or settle any Claim and will fully and truthfully disclose to Us any information relevant to the Claim
6. shall pay the Excess in respect of the Damages of Any One Claim. TheExcess will not apply to Costs and Expenses
7. Wehave the right to pursue any Third Party for recovery of Damages and Costs and Expenses which We have paid on Your behalf
8. Weagree not to seek recovery for amounts We have paid from anyone defined as You unless the Claim has been brought about or contributed to by the dishonest, fraudulent, criminal or malicious act or omission of such person.Any amounts recovered in respect of any Claim under this Policy shall be reimbursed as follows
   1. firstly, for any Costs and Expenses reasonably incurred in relation to the recovery
   2. secondly,You will be reimbursed for any loss in excess of the Limit of Indemnity
   3. thirdly,We will be reimbursed for any Damages and Costs and Expenses expended in respect of the Claim
   4. lastly,You will be reimbursed for Your Excess
9. Weshall not be liable to indemnify You if any Claim made under this Policy is made fraudulently or if any fraudulent intent is involved
10. the event of a dispute between Youand Us in relation to this Policy and its interpretation, the dispute will be set out in writing and submitted to an independent arbitrator who will be empowered to make a ruling and binding decision to resolve the dispute.The appointment of the independent arbitrator will be mutually agreed upon but in the event agreement cannot be reached then the appointment will be made by the Short Term Insurance Ombudsman who will appoint an independent arbitrator with appropriate skills given the circumstances of the matter. The arbitration (including any appeal procedure) will be conducted in accordance with the Rules of the Arbitration Foundation of South Africa
11. the event of any litigation between Youand Us in respect of this Policy summons may be issued against
    The Hollard Insurance Company Limited
    22, Oxford Road
    Parktown
    Johannesburg, 2193

Extensions

The following Extensionsapply if so stated on the Schedule. Each extension, where applicable, is subject to

1. a) Our Liability being limited to the specific Limits of Indemnity stated in the Schedule
2. b) You being responsible for the Excess stated in the Schedule

• Fee Recovery
  This Policy will not assist You to recover professional fees due to You unless there is a Claim made against You by a Third Party for Damages, Costs and Expenses in relation to Services. The fee recovery action will then be taken up by Us on Your behalf as part of the defence of the
• Ventures
  The definition of Youand Your is extended to include any Joint Venture in which the Insured may be involved but only in respect of liability devolving upon the Joint Venture arising out of the performance of Services by the Insured

  Joint Venture

  shall mean where the Insured have agreed with others to jointly provide Services, provided
  1. The fees earned from such Joint Ventures are declared to Us for the purposes of determining Premium
  2. theJoint Venture is not separately insured but where it has been separately insured a period of at least five years has expired since the Services were completed
  3. thatWe will not indemnify You against Claims made by any party forming part of any Joint Venture unless the Claim could have emanated from a Third Party
• Public Liability
  This Policy extends to cover You in respect of Claims arising out of
  1. death, bodily injury, illness or disease of or to any Third Party
  2. loss of possession or control of or actual damage to Third Party property
     Committed or alleged (other than by You) to have been committed by Youin the course of Your business and or the provision of Your Services

     Provided always that :

     1. Wewill not indemnify You
        • against any Claims arising out of the ownership, possession or use of any motor vehicle, trailer, aircraft, watercraft or hovercraft
        • against any Claims arising from damage to property owned, leased or hired or under hire purchase or on loan to You or otherwise in Your care custody or control. This will not apply to clothing and personal effects unless they have been left unattended
     2. eachInsured indemnified is separately indemnified in respect of Claims made against each
        other subject to Our total liability not exceeding the Limit of Indemnity

• in respect of Claims arising out of Pollution the Limit of Indemnity Any One Claim represents the total amount of Our liability in respect of all Claims made during the Period of Insurance

1. excludes any cover insured under the Professional Indemnity Section of this Policy.

• Statutory Defence Costs
  We will indemnify Youin respect of all legal costs fees and expenses incurred by You withOur written consent in the defence of any criminal action brought against You during the Period of Insurance as a result of the alleged contravention by You of any Statute governing the conduct of Yourbusiness and or the provision of Your Services (other than Statutes governing the ownership or use of motor vehicles, aircraft and watercraft, the Labour Relations Act No.66 of 1995, the Companies Act No.71 of 2008) as read in conjunction with the Criminal Procedure Act No.56 of 1955

  Provided always that

  1. no indemnity shall be granted for fines, penalties, punitive, liquidated or exemplary damages
  2. in the case of an appeal, We will not indemnify You unless a Senior Counsel appointed by Us shall advise that such appeal is likely to succeed
  3. Ourliability, is limited to the Limit of Indemnity stated in the Schedule in respect of each criminal action brought against
• Wrongful Arrest
  We will indemnify You in respect of Claims arising out of Wrongful Arrest committed or alleged (other than by You) to have been committed by You in the course of Your business and or the provision of Your Services
  Provided always that
  1. the purposes of this extension, the term Wrongful Arrest shall mean
     1. assault committed or alleged to have been committed at the time of making or attempting to make an arrest, or in resisting an overt attempt to escape by a Third Party under arrest, before such Third Party has been or could be placed in the custody of the Police or a law enforcement officer
     2. defamation, injuria, false imprisonment or malicious prosecution either committed or alleged to have been committed directly in connection with an arrest or arising out of the investigation of acts of shoplifting or theft
  2. no indemnity shall be provided in respect of Claims
     1. made against You by any Third Party other than those Third Parties being or having been or alleged to have been arrested or under arrest, or their personal representatives
     2. againstYou by anyone else referred to under the definition of You, or their personal representatives

• arising out of unfair labour practice as within the meaning of the Labour Relations Act No.66 of 1995 as amended from time to time

• Employers Liability
  We will indemnify You in respect of Claims arising out of death, bodily injury, illness or disease of or to any person who is or was under a contract of service with the Insured arising out of and in the course of Your business and or in the provision of Your Services

  Provided always that

  1. will not indemnify You against Claims arising out of illness or disease caused by or contributed to by prolonged exposure to substances, factors or circumstances peculiar to any particular employment or occupation or for amounts recoverable under any Workmen’s Compensation Enactment
  2. any person who is or was under a contract of service with the Insured shall be deemed to be a Third Party for the purposes of this Extension