Corporate insurance

Valid as of 01.02.2023

The Terms and Conditions of LHV Corporate Insurance describe the scope of insurance coverage, action to be taken in the case of a loss event and the principles of indemnification.

AS LHV Kindlustus (hereinafter LHV) applies these LHV corporate insurance conditions (hereinafter terms and conditions) when insuring companies if the purpose is to insure buildings, movable property, operating profit, rent or lease income and civil liability. The terms and conditions are also applicable to other persons (self-employed persons, non-profit associations, etc., hereinafter collectively company or companies) if the insured object or insurable interest is suitable for the application of the terms and conditions.

LHV corporate insurance (hereinafter corporate insurance) offers companies the opportunity to insure several insurance risks on the basis of one insurance contract. Corporate insurance consists of four parts.

Property insurance indemnifies damage to immovable and movable property caused by an sudden and unforeseen event.
Business interruption insurance indemnifies the loss of operating profit, rent and leasing income, and fixed and other expenses in the event that the company's business activity is interrupted due to a property insurance event.
General third party liability insurance indemnifies material damage caused to a third party during the company's insured activities, including legal expenses on contesting third-party claims for damage.
Employer's liability insurance indemnifies claims for damages arising from workplace accidents and, in the case of additional coverage being selected, occupational diseases. It also compensates legal aid costs for contesting claims for damage.

The agreed insurance coverage, including insurance coverage extensions, restrictions and other special conditions, is indicated on the insurance policy.

Before concluding the insurance contract, the policyholder must make sure that the information specified in the insurance contract is correct and that the scope of insurance coverage is appropriate, and read through the terms and conditions.

Contact details for the insurer

Customer support
Mon–Fri 9 am–5 pm
699 9111
kindlustus@lhv.ee
lhv.ee

Claims adjustment
Mon–Fri 9 am–5 pm
6801122
kahjud@lhv.ee
lhv.ee

Definitions

Limit of indemnity is the maximum amount to which LHV will indemnify damage caused as a result of an insured event. The limit of indemnity may be set for a specific event, risk, asset or object, and it applies to a single insured event.

Loss event is any event that results in damage. A loss event may be but is not necessarily an insured event.

Insurer is AS LHV Kindlustus (above and hereinafter LHV).

Insured object is an object or item specified in the insurance contract and subject to insurance coverage.

Insured person is the policyholder and also any third party specified or unspecified by name in the insurance contract if an insurance risk related to that party is insured.

Insurance indemnity is the amount of money that LHV pays to compensate material damage caused as a result of an insured event and costs agreed in the insurance contract (hereinafter also indemnity).

Insured event is an event provided for in the terms and conditions, in the event of which LHV must perform an obligation arising from the contract. Losses resulting from a single sudden and unforeseen event are considered to be one insured event.

Insurance coverage is, as defined by the terms of the insurance contract, LHV's obligation to pay insurance indemnity in case of insured events specified in the policy or to perform the insurance contract in another way.

Insurance location is a building located at the address specified in the insurance contract, the building's interior space(s) or external territory (for example, real estate) where the insurance coverage is valid.

Parts of the insurance contract are the insurance policy (hereinafter also policy) and terms and conditions of corporate insurance. The sum insured for the insured items and the deductible amount are specified in the policy. Before concluding the insurance contract, the policyholder must make sure that the information specified in the policy is correct and that the scope of insurance coverage is appropriate, and read through the terms and conditions.

Insurance premium is the sum of money, agreed in the insurance contract, that the policyholder is obliged to pay to LHV for insurance coverage.

Insurance period is a period specified in the policy, damage caused during which as the result of an insured event is indemnified by LHV.

Insurance policy is a document certifying the conclusion of an insurance contract issued by LHV.

Sum insured is the maximum amount of money that LHV provides as indemnity for the damage caused due to an insured event.

Insurance territory is the area indicated on the insurance policy where insurance coverage is valid.

Policyholder is the person specified in the insurance policy who concludes an insurance contract with LHV.

Persons considered equivalent to policyholder, also policyholder equivalents, are the insured person and the persons performing the insured person's work or service duties; the owner and legal possessor of the insured item; persons for whom the policyholder is responsible in fulfilling the obligations arising from the insurance contract (except for the obligation to pay the insurance premium), and other persons who have the legal or contractual right to possess or use the insured object.

Insurable value is the value of the insured item or insurable interest immediately before the occurrence of the insured event.

Deductible is a sum or other value specified in the insurance contract (for example, percentage, waiting period), which is borne by the policyholder in the event of an insured event and by which LHV reduces the insurance indemnity.

Beneficiary is a person specified in the policy who, in the event of an insured event, has the right to receive insurance compensation or demand that LHV perform other obligations on grounds specified in the policy.

Term insurance contract is a contract that expires after the end of the insurance period.

Property insurance
Insured object
The insured object is the structure (building, apartment, facility, co-ownership in the building, interior decoration, other parts of the building) and/or movable property (machinery and equipment, goods and other movable property) specified in the policy.
1. Building
  A building is permanently connected to the ground and separated from the external environment by the roof and other external walls, a building with its material parts.
2. Apartment
  An apartment is a spatially defined living space or non-residential space with a notional part of the co-ownership that is part of the apartment ownership (for example, the roof of the building, load-bearing walls, stairwell, elevator).
3. Facility
  A facility is a building created as a result of human activity and connected to the subsoil, which is not a building or part of it (for example, flagpoles, shelter). A small building with a floor area of up to 20 m2 is also considered a facility (for example, a trash collection structure, a greenhouse).
4. Co-ownership in building
  Co-ownership in a building is the co-owned parts of the building, including the exterior finishing of the building, main structures, foundation, roof, windows and doors, rainwater pipes, exterior lighting, stairs, elevators, interior finishing of common rooms and other common areas in the building.
5. Interior finishing
  Interior finishing are parts of a defined room(s), the removal of which does not damage the building's permanence or exterior appearance, and does not violate the rights of the other owners of the building or the occupants of the adjoining space. Interior finishing includes, among other things, doors and windows of the room, non-load-bearing partitions, permanent finishing materials used in the ceiling, wall and floor, built-in furniture and design elements, glass surfaces of the room, sanitary equipment and technical systems throughout the room, including external parts on which only the owner of the insured room depends.
6. Parts comprising the structure:
  1. The parts of the insured building are, among others, those in its composition:
    1. finishing, non-removable and built-in furniture and design elements;
    2. technical systems and utilities with parts extending outside the building up to the connection point, but not further than the boundary of the property;
    3. elements permanently connected to the building, which are installed there for the operation, use or safety of the insured items (for example, a surveillance camera installed on a car shelter).
  2. Items considered as machinery and equipment described in clause 1.8 of the terms and conditions (including design elements that are not permanently connected to the premises) are not considered part of the insured building.
7. Items insured in conjunction with the building
  Together with the building, the following is insured in the insurance location with a limit of indemnity of up to 15,000 euros:
  1. facilities, with the exception of facilities separately indicated in the insurance contract as an insured object (clause 1.3 of the terms and conditions);
  2. fuel required for heating the building;
  3. liquids necessary for the functioning of the building (for example, water in pipelines and receptacles).Unless otherwise agreed in the insurance contract, liquids are compensated only if damage also occurs to other insured items as a result of the same insured event;
  4. landscaping. LHV indemnifies reasonable and justified costs of restoring landscaping damaged as a result of an insured property event.
8. Machinery and equipment
  1. Machinery and equipment are material assets located at the insurance location, which are not classified as buildings, goods in the terms of the terms and conditions, or as non-insurable items 1.101.10 of the terms and conditions. Among other things, machinery and equipment may include furniture, printers, computers, and production equipment.
  2. In the context of the terms and conditions, machinery and equipment are treated at the level of completeness specified by their manufacturer or an official representative, together with accessories, support structures and other important parts that are attached to the equipment and are installed for the operation, use or safety of the equipment.
  3. Insuring machinery and equipment without a list of assets
    In the absence of a list of assets, the insured objects located at the insurance location include the following items belonging to the insured person:
    1. machinery and equipment recognized in the balance sheet;
    2. off-balance-sheet machinery and equipment. If an insured event occurs, the insured person must prove the existence of off-balance-sheet items at the insurance location using expense documents and other documents.
  4. Insuring machinery and equipment on the basis of a list of assets
    If a notation to this effect has been made on the policy, the insurance coverage applies only to items indicated on the policy or listed in the list of assets attached to the insurance contract.
  5. Machinery and equipment located outside the building, facility or insurance location are covered by insurance only if a notation to that effect has been made on the policy
9. Goods
  1. Goods are products, commodities, materials, semi-finished or finished output which is used in the production process or which the insured person has the intention of selling.
  2. Goods located outside the building or facility are covered by insurance only if a notation to that effect has been made on the policy.
10. Non-insurable item
  Unless otherwise stated in the policy, insured object does not include:
  1. buildings built in water;
  2. art and antiques, valuables, precious metal and precious stones;
  3. samples and prototypes, exhibition items and models and collections of objects;
  4. digital screens installed on an external wall, roof or external territory of the building;
  5. cash and digital money, securities and documents, plans and drawings;
  6. living organisms, including animals, birds, fish, plants and fungi;
  7. greenhouses;
  8. paved roads, soil, railways, bridges and tunnels;
  9. motor, air and water vehicles subject to registration;
  10. self-propelled machines, tractors and other motor vehicles intended for work;
  11. equipment parts or consumables that are regularly replaced (for example, drill bits, cutting discs, lubricants, filters, light bulbs), unless damage to other parts of the insured equipment occurred as a result of the same insured event;
  12. underground equipment. In the context of the terms and conditions, non-insurable underground equipment does not include equipment located on the basement floors of the building, or parts of the building's technical system and other parts installed for the operation, use or safety of the building;
  13. mobile communication antennas;
  14. customs and excise warehouses, including transit goods, goods located in customs and excise warehouses;
  15. weapons and their parts, ammunition and explosives.
Insurance coverage
1. An insured event is sudden and unforeseen event that occurred during the insurance period, including destruction, damage, theft or robbery, as a result of which the insured object is lost, destroyed or damaged and which is not excluded in clause 4.1-4.35 of the terms and conditions. If the policy has a notation to this effect, insured events also include extensions of insurance coverage listed in clauses 3.1 – 3.8 of the terms and conditions.
Extensions of insurance coverage
Each separate extension of insurance coverage is valid only if it has been agreed upon and there is a notation on the policy to that effect. The policyholder can choose the following insurance coverage extensions:
1. damage to the non-defective component of the insured item as a result of faulty workmanship or a construction defect.
  In case of damage caused by a construction defect, faulty workmanship, unsuitable or defective material or product, LHV shall compensate the damage caused by an sudden and unforeseen event to the non-defective component of the insured item;
2. damage caused by snow or ice accumulating on the roof.
  Damage caused by the weight or movement of snow or ice falling on the roof over a short period of time (72 hours or less);
3. precipitation and melt water entering the building.
  LHV shall indemnify up to 5,000 euros for damage incurred to the insured object when rainwater or melt water enters the insured building for the first time through the roof, walls or other building envelope structures. The policyholder or a person equivalent to the policyholder must take measures to prevent recurring damage. LHV shall not indemnify the costs of repairing or replacing the leak site (structural element) or leaks, the sources of which the policyholder was or should have been aware of before the loss event;
4. internal breakdown of a building utility system.
  An insured event is an sudden and unforeseen failure of or damage to a building utility system caused by an internal breakdown, including:
  1. outflow of wastewater or wastewater as a result of blockage of the building's internal sewerage system;
  2. activation of the automatic fire extinguishing system;
  3. leakage of liquid from an aquarium or other container;
5. damage caused by regular repair and maintenance work.
  1. LHV shall indemnify damage that has occurred as a result of the maintenance operations in the insured building, including as a result of repair works for which the existence of a building notification, project or permit is not mandatory and the purpose of which is to maintain or restore the condition of the building to fulfil its purpose, without changing the building's appearance, structures and capacity.
  2. Insurance coverage for repair and maintenance works is valid if the roof, doors and windows are installed and all openings in the envelope structures of the insured building are closed in such a way that precipitation and water from melting ice and snow are prevented from entering the building and a third party cannot enter the interior space under construction and/or the building unsupervised and without the use of assistive tools.
  3. The construction works described in clause 3.6 of the terms and conditions are not considered repair works.
  4. A double deductible is applied to damages caused as a result of repair and maintenance work;
6. damage caused by construction works.
  If the contractual value of construction works is up to 50,000 euros, the insurance coverage extends to damage caused to insured items by construction work at the insurance location. Construction work may only be carried out by persons with appropriate competence. In construction works with a contractual value of more than 50,000 euros, the policyholder must first make a separate agreement with LHV and, if necessary, conclude a separate construction risk insurance contract for performing the works.
  1. Construction work, i.e., building, is the erection, construction, installation, rebuilding, expansion, demolition, modification of the technical system of the building or its part or the complete replacement of the technical system and other activities related to the building, as a result of which a building comes into existence is created or its physical properties or functions are changed. Construction is also the relocation of soil or pavement to such an extent that it has a significant permanent impact on the surrounding environment and a functional connection with the building.
  2. Insurance cover for construction works is valid if the roof, doors and windows are installed and all openings in the envelope structures of the insured building are closed in such a way that precipitation and water from melting ice and snow are prevented from entering the building and a third party cannot enter the building unsupervised and without the use of assistive tools.
  3. If a fire breaks out as a result of construction work carried out at the insurance location, as a result of which the insured object is damaged or destroyed, LHV will indemnify the loss even if there is no notation to this effect in the policy, as long as the policyholder has informed LHV of the construction work plan before the works start. A double deductible applies to the insured event described in this subsection.
  4. Repair and maintenance works specified in clause 3.5 of the terms and conditions are not considered construction works;
7. intent or gross negligence of the tenant or lessee.
  Insurance coverage extends to damages to insured objects caused by the intent or gross negligence of the tenant or lessee. Within said extension of insurance coverage, the tenant or lessee is considered a third party, which means that they are not deemed the equivalent of the policyholder. In the event that indemnity is paid, the right of claim belonging to the insured person against the person responsible for the damage shall be transferred to LHV in the amount indemnified;
8. machinery breakdown.
  1. The insured object is equipment up to ten years old, including electronic or mechanical industrial or production, medical and laboratory equipment or other equipment and machinery with an independent use. The age of the equipment is calculated from the date of purchase as new. If the date of purchase is not known, the age of the item is the time that has elapsed since the date of manufacture.
  2. The equipment is insured at the level of completeness specified by the manufacturer or official representative, including extras and other material parts included as standard with the equipment.
    Equipment fault insured event
  3. An insured event is sudden and unforeseen damage or destruction of the insured equipment as a result of internal failure or other internal fault, including:
    1. short circuits, overvoltage and undervoltage not caused by external factors;
    2. internal mechanical and centrifugal forces;
    3. damage caused by internal parts of the insured equipment to other parts of the equipment;
    4. damage to the high-quality parts of the equipment caused as a result of defects of material and design flaws;
    5. damage to or failure of the equipment due to a foreign object entering it.
Exclusions
LHV shall not indemnify the following losses:
1. damage caused as a result of the events described in clauses 3.1 – 3.8, unless a corresponding extension of insurance coverage is specified in the policy;
2. damage or injury that occurred, or whose cause began, before the conclusion of the insurance contract or the occurrence of which was evident at the time of conclusion of the insurance contract;
3. damage that occurs at a predictable frequency, such as an annual flood, and damage where the policyholder has either intentionally or due to gross negligence failed to take measures to prevent its aggravation or recurrence;
4. damage that has occurred as a result of the insured item being left unattended, lost or forgotten and left in a visible place (for example, loss of items in common areas);
5. damage that has occurred gradually over a long period of time, including fatigue and cracking, spalling, normal progressive wear, material fatigue, deterioration, corrosion, scaling, rot, decay, fungal damage, mould, mildew, excess moisture damage, condensation damage, or other long-term damage;
6. damage caused by shrinkage or expansion of the insured object or its parts, unless the incident occurred directly as a result of an insured event;
7. the cost of repairing or replacing a planning error, design flaw or construction defect, repair or replacement of faulty workmanship or a defective component;
8. damage that has occurred as a result of a landslide, or subsidence of soil or the insured building or parts thereof;
9. pest, insect, rodent, bird and domestic animal activity. If, as a result of an abovementioned event, water or fire damage occurs, LHV will indemnify the insured object for damage caused by water or fire;
10. cosmetic defects, such as scratches, pits, stains, dents, tears, discolouration and other such defects that do not affect the intended use of the insured object;
11. direct or indirect damage caused by nuclear and radioactive material and the use of nuclear energy;
12. damage caused by blasting, mining and vibration;
13. damage caused by expropriation, confiscation or other similar event;
14. damage resulting from the use of the insured item in a way for which it was not intended;
15. damage for which, on the basis of legislation or contract, a network operator, manufacturer, seller, installer, maintainer, builder or other person in a contractual relationship is liable;
16. the cost of maintenance and ensuring conformity with the prescribed requirements and the value of the part to be replaced in the course of it, unless the need to perform the mentioned works has arisen as a result of an insured event;
17. damage caused by data loss, damage or destruction of data files, malware and computer viruses, computer programs and software, internal hardware failures, with the exception of damage caused by the destruction or damage of insured items as a result of an insured event specified in the policy;
18. damage caused to the machinery or equipment during its assembly, disassembly, configuration, testing or trial operation;
19. damage that has occurred as a result of inaction, intent or gross negligence of the policyholder or a person equal to the policyholder;
20. damage caused to the material or semi-finished or finished product as a result of processing;
21. damage that has occurred as a result of the deterioration, melting or change of properties of the goods due to non-operation, failure or incorrect configuration of the heating, cooling or refrigerating equipment;
22. damage caused as a result of burglary perpetrated by a person working for or associated with the insured person, unless the building or premises constituting the insurance location was closed to those persons;
23. damage that occurred as a result of the removal and removal of the insured object in the absence of violence or the threat of violence;
24. damage caused by theft (not including burglary and robbery), loss, or shortage discovered during the inventory;
25. damage caused by an act of terrorism, insurrection, civil unrest, strike, war, mass disorder, coup d'état, state of emergency or similar event;
26. damage related to kidnapping and/or ransom demand;
27. damage directly or indirectly related to infectious diseases;
28. damage that has occurred as a result of environmental pollution;
29. damage caused by smoke, steam, dust, precipitate, soot or other such, if it is not causally connected to the insured event;
30. damage caused by insufficient capacity or volume, failure, non-operation or insufficient maintenance of the sewerage system located outside the building;
31. damage caused by the failure or non-operation of a dam or other protective structure or land improvement system;
32. damage caused by a design flaw;
33. damage caused to machinery, equipment or goods located outside the building or in an open building, if it is not intended for use or storage in outdoor conditions;
34. damage incurred to the insured item during transportation;
35. damage incurred to the insured object as a result of a regular and announced power, water, steam or gas cut.
Insurable value
1. Insurable value is the value of the insured object immediately before the occurrence of an insured event.
2. The insurable value of a building is its restoration value, i.e., the reasonable costs necessary to restore a new building of the same type and with the same characteristics in the same insurance location.
3. The insurable value of machinery and equipment is the item's repurchase value or market value.
  1. The repurchase value is the purchase price of a new item with the same purpose of use, technical characteristics and completeness, including transport and assembly costs.
  2. The insurable value of the item is its market value if the item was purchased used and/or the depreciation on the item was more than 50% immediately before the loss event. Market value is the purchase price of an item with equivalent purpose of use, technical characteristics and completeness and with similar depreciation, including transport and assembly costs.
4. Insurable value of goods
  1. The insurable value of goods is the replacement value of the goods, which is understood as the cost of repurchasing goods with the same characteristics and technical specifications, including transport costs. The insurable value of the goods does not include the insured person's profit share or other costs.
  2. The insurable value of commodities and semi-finished and finished products is considered to be the acquisition cost of the commodity and direct costs related to production. The insurable value of commodities and semi- finished and finished products does not include the insured person's profit share or other costs.
Damage prevention and damage reduction costs and other additional costs
1. In case of an insured event covered by property insurance, the following is indemnified:
  1. justified damage prevention and reduction costs even if they did not produce the desired result;
  2. the reasonable costs of dismantling a damaged object and clean-up, including waste collection costs;
  3. justified costs that must be incurred for the restoration of the insured item in connection with the fulfilment of the requirements and precepts of the competent authorities, excluding the costs related to the elimination of environmental damage.
2. The justified expenses listed in clause 6.1 of the terms and conditions are indemnified by LHV up to 10% of the sum insured for the damaged insured object, but not more than 300,000 euros. If the sum of property insurance loss and the expenses listed in clause 6.1 exceeds the insured item's sum insured, LHV will additionally indemnify these additional expenses up to 100,000 euros per insured event.
Principles of indemnification for property insurance
1. After the occurrence of an insured event covered by property insurance, the sum insured specified in the insurance contract does not decrease.
2. If LHV indemnifies the costs of restoring the building, it pays out the indemnity proportionally, taking into account the scope of the restoration.
3. If the policyholder does not wish to restore the structure, LHV will indemnify the damage based on a justified calculation prepared for the restoration of the structure, from which LHV will deduct a percentage proportional to the natural wear and tear on the damaged structure.
4. In the event of insured event concerning machinery, equipment and goods, LHV indemnifies the costs of the object's repair. If the insured object is stolen, including in a robbery, destroyed or damaged in such a way that it cannot be restored, LHV will indemnify the cost of the object at repurchase value or market value, based on clause 5.3 of the terms and conditions.
5. LHV may replace the object destroyed with an equivalent object or pay out the insurance indemnity monetarily in an amount equal to the repurchase value of the object to be replaced.
6. LHV has no obligation to indemnify the value of the extant part of the insured object.
7. If LHV indemnifies the costs of replacing the insured object, LHV is entitled to the right of ownership of the replaced object. If the policyholder wishes to keep the destroyed object in their own ownership, LHV shall reduce the insurance indemnity by the post-insurance-event value of the property.
8. Other costs specified in the terms and conditions or the policy shall be indemnified to a reasonable and justified extent by LHV on the basis of a document certifying the amount of the respective costs.
9. With regard to property insurance indemnity, the underinsurance, overinsurance and multiple insurance provisions given in clauses 15.1 – 15.3 of the terms and conditions are applied.
10. In addition, when indemnifying damage, LHV proceeds from the general principles of indemnification stated in clauses 37.1 – 37.3 of the terms and conditions.
Business interruption insurance
Insured object
The insured object is specified in the policy:
1. operating profit. Operating profit is obtained by subtracting the direct costs, fixed costs and variable costs of the goods or services sold from the sales revenue of the economic activity specified in the policy;
2. fixed costs. These are expenses related to business activity indicated in the policy, which do not depend on changes in the volume of production, goods or services and are preserved even after a business interruption insured event. Fixed expenses are indemnified by LHV if their further payment is justified economically and on the basis of valid legislation, and these expenses would have been incurred even if the insured event had not occurred;
3. rental or lease income.
  1. Rental or lease income is the fee paid to the insured person on the basis of the contract for renting out or leasing out the immovable property or part of it specified in the policy.
  2. The rent or lease income does not include ancillary costs or other costs added to the rent or rent, unless otherwise agreed;
4. other costs agreed in the insurance contract. In the case if the policy has an indication to this effect, the insured object includes other expenses that the insured person may incur or sustain in the event of an insured event.
5. non-insurable item
  Unless otherwise stated in the policy, insured object does not include:
  1. state and local taxes (for example value added tax, income tax, customs duty, excise tax);
  2. financial income and other extraordinary income and such income and expenses that are directly related to the economic activity insured;
  3. costs that are directly related to changes in volume of turnover (for example, copyright, patent and licensing fees, insurance premiums);
  4. costs related to the procurement of goods and other assistive means;
  5. transportation costs associated with the sale of goods and services.
Insurance coverage
1. A business interruption insured event is an interruption or disruption of economic activity specified in the policy, which was caused by a property insured event.
Exclusions
Under business interruption insurance, LHV does not indemnify the following:
1. damage that has no causal connection with the property insurance insured event;
2. damage caused by the fact that the policyholder does not have money or other means to restore the pre-loss situation;
3. loss caused by the loss to, damage to or destruction of documents, plans, cash, securities or other written notes and data carriers;
4. damage caused by the action or inaction of the state or local government. If the restoration of the pre-loss situation is prolonged due to the action or inaction of the state or local government, LHV will indemnify the loss for the period of time that, according to an expert assessment, it would have taken to resume the same business activity if the action or inaction of the state or local government had not taken place, but no more than the indemnity period specified in the policy;
5. a loss that is compensated by a third party or that is indemnified on the basis of another insurance contract;
6. a loss caused by fines and sanctions resulting from the policyholder's failure to fulfil a contractual obligation;
7. variable costs or direct costs that depend on the volume of insured economic activity;
8. a loss caused by the absence, inadequacy, interruption or disruption of electricity, water, steam, gas and/or other energy supply;
9. a loss that has occurred as a result of deficient accounting;
10. company dissolution costs.
Damage reduction and prevention costs
1. LHV indemnifies justified additional costs incurred to reduce and prevent losses from business interruption (for example, the cost of renting a replacement space, moving costs) if they have been agreed upon with LHV in advance.
2. The justified expenses listed in clause 11.1 of the terms and conditions are indemnified by LHV up to 10% of the sum insured for the damaged insured object associated with the insured event, but not more than 300,000 euros. If the sum of business interruption insurance loss and the expenses listed in clause 11.1 exceeds the insured object's sum insured, LHV will additionally indemnify these additional expenses up to 100,000 euros per insured event.
Insurable value
1. The insurable value is the operating profit, rental or lease income, fixed costs or other agreed expenses selected as the insured item to the maximum extent that would have occurred during the indemnity period had the insured event not occurred.
2. The calculation of the insurable value is based on LHV's forecasts of the insured person's economic indicators within the indemnity period and its economic indicators for up to three previous financial years.
Indemnity period
1. The indemnity period is the maximum period of time specified in the policy, for which LHV will pay the business interruption indemnity.
2. The actual indemnity period begins at the time of the insured event covered by property insurance and ends with the achievement of the economic situation the insured person would have found itself in had the insured event not occurred, but no longer than the period specified in the policy.
Principles of indemnification for business interruption insurance
1. After the occurrence of an insured event covered by business interruption insurance, the sum insured specified in the insurance contract does not decrease.
2. In the event of an insured event, LHV indemnifies the loss for the period of business interruption, which begins at the time of the insured event and ends with the achievement of the economic situation before the loss, i.e., the situation in which the insured person would have been had the insured event not occurred, but no longer than the indemnity period specified in the policy.
3. When calculating the amount of business interruption loss, LHV takes into account all circumstances that could have affected the company's results had the insured event not occurred (for example, seasonality, market situation).
4. With regard to business interruption insurance indemnity, the underinsurance, overinsurance and multiple insurance provisions given in clauses 15.1 – 15.3 of the terms and conditions are applied.
5. If the provision of underinsurance given in clause 15.1 of the terms and conditions is applied to the insurance indemnity of property insurance, the provision of underinsurance is also applied to the insurance indemnity for business interruption to the same extent. If LHV refuses to indemnify a loss under property insurance in part or in full, it has the right to deny business interruption indemnity in the same proportion.
6. If it turns out that the policyholder is not continuing the economic activity specified in the policy, LHV takes the period of time that, according to an expert assessment, it would have taken to resume the same economic activity, but no longer than the indemnity period specified in the insurance contract.
7. In addition, when indemnifying damage, LHV proceeds from the general principles of indemnification stated in clauses 37.1 – 37.3 of the terms and conditions.
Underinsurance, overinsurance and multiple insurance
1. Underinsurance. If, at the time of the occurrence of the insured event, the sum insured stated in the policy is more than 15% less than the insurable value, then LHV is liable for the loss in a proportion equal to the ratio of the sum insured to the insurable value.
2. Overinsurance. If the sum insured specified in the policy significantly exceeds the insurable value, LHV will indemnify the actual amount of loss.
3. Multiple insurance. If the policyholder insures the same insurance risk through several insurers and the total amount of insurance indemnities paid by the insurers exceeds the amount of the loss or the total of the sums insured exceeds the insurable value, the insurers shall be jointly and severally liable.
Deductible
Deductible is the amount borne by the policyholder in the event of an insured event.
1. The deductible is deducted from the insurance indemnity to be paid. If the insured object has been damaged or destroyed as a result of several insured events, a deductible applies to each insured event separately.
2. All losses resulting from the same sudden and unforeseen event, including claims arising therefrom, shall be subject to a single, maximum deductible.
3. The business interruption deductible is the waiting period specified in the policy.
  1. Starting on the day after the occurrence of the insured event, the time period specified in the policy, i.e. the waiting period, applies.
  2. If the period of business interruption is within the waiting period, LHV shall not indemnify the damage incurred, except for the costs of damage reduction and prevention described in clause 11.1 of the terms and conditions, if they have been previously agreed with LHV.
Safety requirements
LHV has the right to refuse or reduce indemnity in the event that the policyholder and equivalents have not followed the safety requirements established in the legislation, user manuals and conditions and as a result of this damage occurred or there was a causal connection with the loss event.
1. Fire safety
  1. The policyholder and equivalents must comply with the fire safety requirements set forth in the Fire Safety Act, other legislation, use and maintenance manuals, and elsewhere.
  2. The required primary fire extinguishing equipment must be available in the building and indoors.
  3. The premises and territory of the insurance location must be regularly cleaned of waste and rubbish.
  4. Refuse and waste must be placed on the territory in such a way that if they ignite, it is impossible for fire to spread.
  5. Excessive combustion loads (such as pallets and packaging material) must be removed from the workplace immediately after work with them is completed.
  6. Evacuation routes and passageways in offices, production and storage rooms must be kept free.
  7. Smoking is allowed only in a place designated and furnished accordingly.
  8. Operations and work involving open flame, heating of material, melting and other work with a similar risk may only be done in accordance with the applicable legislation and by a person with the appropriate qualifications.
  9. Fire doors, fire hatches and fire windows must undergo maintenance at the prescribed frequency.
  10. Fire doors must be kept closed, with the exception of automatically operated doors, which must be guaranteed to close without obstruction.
  11. Openings and utility system penetrations must be filled in the entire thickness of the structure with non- combustible material that does not reduce the fire resistance of the structure.
  12. Weak-current and server rooms must comply with the applicable fire safety requirements.
2. Fire alarm
  1. If there is a fire alarm, it must be switched on 24 hours a day.
  2. The fire alarm must activate in case of danger and ensures the transmission of an alarm.
  3. When designing, installing, setting up, using and maintaining the fire alarm, the requirements for its technical maintenance and condition, as well as valid legislation, must be followed.
3. Automatic fire extinguishing system
  1. If there is an automatic fire extinguishing system, it must be in working order.
  2. When designing, installing, setting up, using and maintaining the automatic fire extinguishing system, the requirements for its technical maintenance and condition, as well as valid legislation, must be followed.
4. Storage
  1. Items may be stored in the building or in its immediate vicinity only in the designated area and in compliance with fire safety requirements and other applicable norms.
  2. The storage of combustible material must follow applicable norms, including the compatibility of hazardous substances and safe distance from the building.
  3. In areas located below the ground level, goods must be kept at least 12 cm above the floor level.
  4. Evacuation routes, access to circuit breakers and fire extinguishers must not be blocked.
  5. The area around the equipment must be kept free of materials and products.
5. Equipment use
  1. The policyholder is obliged to comply with the legislation and official safety requirements in force in the Republic of Estonia (for example, the Electrical Safety Act, the Equipment Safety Act, the safety requirements for electrical equipment and the electromagnetic compatibility requirements for electrical installations or equipment) and the safety requirements described in the insurance conditions.
  2. When commissioning and using equipment, its installation, setting, use and maintenance instructions and the requirements for technical maintenance and condition must be followed.
6. Heating equipment
  1. The heating equipment must comply with the design documentation for the building or heating equipment.
  2. When installing and using the heating equipment, the safe distance, its installation, configuration, use and maintenance instructions, valid legislation and requirements for the technical maintenance and condition must all be observed.
  3. Solid-fuel heating equipment installed in the building (including oven, stove, fireplace) must be legal and its safety be certified by a competent expert.
7. Security alarm
  1. If there is an alarm system, it must be armed upon departure from the insurance location.
  2. The security alarm must activate in case of danger and ensure the transmission of an alarm.
  3. The security alarm system must be installed so that the insured item for which burglary insurance coverage is selected is located in the operating area of the security alarm system sensors.
  4. Storage, building technical solutions, furniture arrangement and the like must not reduce the operating range or sensitivity of the sensors of the security alarm system. The consideration must be that the building or the room located there may be broken into through a door, window, wall or roof or in some other way.
  5. The policyholder is obliged to ensure that in the event of activation of the security alarm and an alarm, an employee of the security company or a representative of the policyholder inspects the building or premises in the insurance location, both inside and outside.
  6. The security alarm system must be in working order and its operation must not be disturbed due to the actions or inactions of the policyholder or equivalents.
  7. The security alarm codes must not fall into the hands of a third party.
8. Locks
  1. Upon departure from the insurance location, all windows, hatches and other openings in the building or premises of the insurance must be closed so that it is not possible to enter the insurance location without breaking or removing the closing mechanism(s) or barrier preventing entry.
  2. When leaving the insurance location, the safes and security cabinets located there must be closed and locked.
  3. Keys to the locks and opening codes, as well as security alarm keys and codes, must not be kept in a place or in a manner that would allow third parties to access them. If the key or code is lost or comes into illegal possession, the insured person must change the lock or code immediately.
9. Electrical system
  In designing, installing, setting up, using and maintaining the electrical system, the requirements for its technical maintenance and condition, as well as valid legislation, must be followed. The electricity system must be audited based on the procedure provided by law.
10. Water supply, sewerage, heating and ventilation system
  1. The policyholder is obliged to take care of the maintenance of the water supply, sewerage and heating system.
  2. The water supply, sewerage and heating system located in an unused or unheated building or part of a building must be drained, closed and kept empty.
  3. In designing, installing, setting up, using and maintaining the ventilation system, the requirements for its technical maintenance and condition, as well as valid legislation, must be followed. The ventilation system, including piping and exhaust systems and their filters, should be cleaned or replaced as a minimum according to the instructions received from the manufacturer or installer.
11. Construction, repair and maintenance works
  1. When performing construction, repair and maintenance work, the safety requirements of the relevant field, the requirements arising from the building code and the manufacturer's user manuals and other prescriptions and norms that apply to this work must be followed.
  2. Before starting the work, the policyholder shall determine the location of the water, sewage, electrical installations, heating and/or ventilation system, shall be certain of this, and shall not perform the work in a way that could give rise to damage. This safety requirement also applies to, for example, the installation of pictures, lighting, racks and mirrors.
12. Snow removal and de-icing
  1. In the insurance location, regular snow and ice removal from building structures and anti-slip treatment of the roads in the territory of the insurance location must be ensured.
13. Inspection and maintenance of roofs, rainwater and sewage pipes, sumps and drainages
  1. Building roofs, rainwater and sewage pipes, sediment pits and water drainage must be regularly inspected and maintained.
  2. A functioning non-return valve must be installed on the building's sewerage system.
  3. Local cesspits and other tanks used to collect sewage must be emptied regularly.
General third party liability insurance
Definitions
Third party, also referred to as "injured party", is a person to whom the insured person has caused material damage and to whom the insured person is obliged to compensate. The third party does not include parties to the insurance contract or insured persons.
Insured activity is the activity of the insured person specified in the policy, in the course of which the insured person has the obligation to compensate the material damage that may be incurred by a third party.
Insured object is the material obligations attendant on the civil liability of the insured person (hereinafter the liability of the insured person).
Policyholder and insured person
1. The policyholder is the person specified on the policy, who has entered into an insurance contract with LHV and who has the obligation to pay insurance premiums.
2. The insured person is the policyholder or the person specified on the policy, the liability associated with whom is insured.
3. The policyholder is responsible for explaining the terms and conditions of the insurance contract to the insured person and fulfilling them.
4. The insurance contract extends to all natural persons working under and/or on assignment of the insured person, whom he uses in his economic activities to perform work or service tasks (for example, persons working on the basis of an employment contract, temporary employees, legal representatives).
5. The insurance contract does not extend to legal entities that the insured person uses in the fulfilment of the obligation in their economic activities and for damage caused by whom the insured person is liable as if for the damage caused by the person themself (for example, subcontractors).
Insurance coverage
1. An insured event is an sudden and unforeseen material damage caused to a third party by the insured person during the insurance period, as a result of which the insured person becomes obligated to compensate the damage. The occurrence of damage must be causally connected to the insured person's activity specified in the policy, and the activity must be the cause of the damage. The insurance contract does not extend to the contractual obligations of the insured person, unless the corresponding obligation to compensate damages would arise even without the concluded contract.
2. insured event is not any of the exclusions listed in clauses 22.1 – 22.36 of the terms and conditions.
3. Obligations to compensate damage arising as a result of a single circumstance or event are considered to be one insured event, and the agreed limit of indemnity or sum insured specified in the policy and a single deductible apply. The time of occurrence of the insured event is considered to be the time of the occurrence of the first loss (which resulted in the obligation to compensate the damage), as a result of which the insured person became obligated to compensate the damage.
Extensions of insurance coverage
The policyholder can select the following insurance coverage extensions. Each separate extension of insurance coverage is valid only if it has been agreed upon and there is a notation on the policy to that effect.
1. Contractual liability
  1. If contractual liability insurance coverage is specified on the policy, the insurance contract extends to claims for compensation of damage resulting from the insured person violating contractual obligations. The occurrence of damage must be causally connected to the insured person's activity specified in the policy, and the activity must be the cause of the damage.
  2. The insurance contract does not extend to claims for damage arising from a contract, if the agreements underlying the claims impose on the insured person compensation conditions which are stricter than what is provided by law, and which restrict the rights of the insured person (for example, extension of the limitation period for claims, agreements that expand the scope of damage, simplified proof, forms of guilt or liability).
  3. Losses resulting from breach of contractual obligation shall be indemnified by LHV to the extent described in clause 32 of the terms and conditions.
  4. The contract to which the resulting liability is extended by the insurance contract must be concluded between the parties in a form that enables written reproduction.
2. Activities of the subcontractor
  1. If subcontractor insurance coverage is indicated on the policy, the insurance contract extends to damages caused to third parties by a subcontractor used in the insured person's economic activities, if the damage was caused by the insured activity specified in the insurance contract and the insured person has an obligation to compensate the third party.
  2. Losses resulting from the activities of the subcontractor will be indemnified by LHV to the extent described in clause 32 of the terms and conditions.
  3. If, according to the policy, the extension of the insurance coverage of the subcontractor's activities is valid, then in case of damage caused by these subcontractors, LHV has the right, after the payment of the insurance indemnity, to file a recovery claim against the person who caused the damage and was used in the economic activity.
3. Third-party property in the possession and use of the insured person
  1. If insurance coverage for third-party property in the possession of the insured person is specified in the policy, the insurance contract extends to damage caused to third-party property in the possession of the insured person, including theft and robbery. A loss shall not be indemnified if it was caused by the property going missing.
  2. The insurance coverage for property belonging to a third party applies within the limit of indemnity specified in the policy for the insurance period, but not in an amount greater than 50,000 euros
4. Gross negligence
  1. If gross negligence insurance coverage is indicated on the policy, the insurance contract extends to claims on the grounds of damage caused by gross negligence by the insured person.
  2. Gross negligence coverage does not apply to damages caused while under the influence of alcohol, drugs, or any other form of intoxication.
  3. Losses caused as a result of gross negligence will be indemnified by LHV to the extent described in clause 32 of the terms and conditions.
Exclusions
LHV does not indemnify claims for losses related to the following circumstances.
1. Dishonesty, intent and gross negligence
  A loss resulting from a circumstance or event of which the insured person was or should have been aware before concluding the insurance contract, caused by the insured person intentionally or due to gross negligence. LHV indemnifies damage caused as a result of gross negligence if, according to the policy, the insurance coverage described in clause 21.4 of the terms and conditions applies.
2. State of intoxication
  Damage caused while intoxicated, i.e., under the influence of alcohol, drugs or any other form of intoxication, by the insured person, their employee or contractor or a person for whom the insured person is responsible.
3. Non-proprietary loss and income forgone
  Damage based on non-proprietary damage (i.e. moral damage) and forgone income, with the exception of the reduction or absence of income related to health problem of a third party (the basis for the calculation of the decrease in income is the third party's average income subject to social tax for the last 12 months) and any other damage, which is not material damage as described in clause 32 of the terms and conditions.
4. The following non-contractual obligations
  The insurance contract shall not extend to claims, the basis of which is a public promise to pay, presentation of an item, negotiorum gestio or unjust enrichment.
5. Product and employer's liability
  Damage caused by a defect in a product produced, sold or distributed by the insured person (product liability insurance covers claims arising from a product defect) and damage incurred by such a product itself, as well as damage caused by the insured person from an accident at work or occupational disease that befell a person working for (employer's liability insurance covers claims arising from said losses).
6. Professional liability
  Damage caused by the provision of a professional service. Professional services include legal assistance, medical, accounting, supervision and design services and other professional advice, measurement and planning, as well as service that comprises calculation and evaluation. Professional liability insurance covers claims arising from the provision of professional services.
7. Compulsory insurance
  Damage that is indemnified on the basis of compulsory insurance (including TPL motor insurance).
8. Loss indemnified under pension insurance or other social security scheme
9. Loss incurred personally by the insured person
10. Claims between insured persons and claims from persons associated with the insured person
  LHV does not indemnify claims between the insured persons or the claims between the policyholder and the insured person. Nor does LHV indemnify claims brought against the policyholder or the insured person by a person directly or indirectly owned or managed by the policyholder or the insured person (for example, a subsidiary or affiliated company) or by a legal or contractual representative, family member or other close relative of the policyholder or the insured person, or an entity who owns the policyholder or the insured (for example, the parent company or an individual).
11. Damage to third-party property in the possession of the insured person
  A loss caused by damage to or destruction (including loss, theft, robbery) of third party property (including documents, data carriers) in the possession, use, storage of or being processed, repaired or undergoing maintenance by the insured person. LHV indemnifies damage caused as a result of damage to, destruction and theft (including in a robbery) of third-party property in the possession of the insured person if, according to the policy, the insurance coverage described in clause 21.3 of the terms and conditions applies.
12. Substandard service
  A loss resulting from the insured person's failure to provide service or from improper performance, or insufficient quality of the service (for example, expenses for redoing, repairing, or replacing work performed improperly).
13. Uninsured activity
  Damage that does not result from the insured activity specified in the policy.
14. Fines
  Public sanctions (e.g. monetary penalty, fine, penalty payment, imprisonment) and private sanctions (e.g. earnest money, late payment, liquidated damages, guarantee, interest).
15. Liability arising from contract
  Claims based on breach of contractual obligations and related liability, unless, according to the policy, the insurance coverage described in clause 21 of the terms and conditions is applicable.
16. Confidential information
  Damage caused by violation of personal rights, disclosure or making available of any confidential information.
17. Intellectual property
  A loss arising from infringement of intellectual property rights. Intellectual property rights are copyright and rights attendant on copyright and industrial property (e.g., trademark, patent, industrial design).
18. Unprofessionalism
  A loss caused by the absence or insufficiency of permits, qualifications or licences required for the insured person's activities.
19. Construction works
  A loss caused by construction, repair, renovation, demolition, adjustment or conversion work. The insurance contract applies to the abovementioned works only to the extent of operations performed for the purpose of daily maintenance at the insurance location.
20. Water, gas, heat or electricity supply disruptions, interruptions or shortages
21. Hardware, software and processors
  Damage directly or indirectly related to the hardware, software or processors of any computers or servers.
22. Pollution and contamination
  Damage resulting from regular contamination and pollution of the environment (including claims arising from the Environmental Liability Directive and legislation).In relation to environmental damage, the insurance contract extends only to damage caused by an sudden and unforeseen event, and the time between the pollution introduced into the environment and its discovery must not exceed 72 hours. LHV only indemnifies direct material damage and the cost of removing environmental pollution. LHV does not indemnify personal injuries caused by environmental damage.
23. Long-term deleterious effect
  A loss caused by long-term factors such as wear and tear, mould, mildew, wastewater, decay, corrosion, moisture, dust, noise and light (excluding damage caused by an sudden and unforeseen event such as fire).
24. Precipitation and melt water
  Recurring damage caused by precipitation or water from melting ice or snow entering the building through any of its structures. The insurance contract is valid in case of the first insured event at the insurance location (this means that said loss has not occurred before to the bets of existing knowledge).
25. Subsidence and movement of soil
  Damage caused by ground subsidence or movement, including earthquake, landslide, erosion or vibration.
26. Force majeure
  Force majeure is a circumstance beyond the control of the insured person. Among other things, the insurance contract does not apply to losses caused by a natural disaster (a natural phenomenon of an extraordinary nature), war or war-like activity, coup d'état, uprising, terrorism, revolution, state of emergency, civil unrest, act of a foreign enemy, strike, crime (including computer crimes and cybercrime), expropriation, confiscation of assets, nationalization and any other similar event.
27. Explosives and weapons handling
  Damage caused by any explosive (including blasting), explosive product, pyrotechnic product or weapons (including firearms, chemical and biological weapons and electromagnetic weapons).
28. Other risk factors in regard to the environment and health
  Damage caused by asbestos, tobacco or tobacco products, toxic mould, drugs, any infections and communicable diseases (including AIDS, HIV and hepatitis), dioxin, genetically modified substance or organism, animal disease agents, pesticides, radioactive radiation, nuclear energy, magnetic, electric or electromagnetic field.
  LHV does not indemnify claims related to the following objects and areas of activity:
29. management of landfills or waste treatment centres;
30. not located on land, i.e., offshore and water construction objects;
31. blasting and ramming works, underground and underwater works;
32. owning, operating, managing or using a port, wharf, aircraft, watercraft, airfield, railway or railway rolling stock;
33. construction, repair and maintenance of aircraft and watercraft;
34. damage to aircraft and watercraft;
35. work in the airport territory and air traffic control centre;
36. operation and management of an aquatic centre, ski resort or amusement park.
Employer's liability insurance
Definitions
Injured person is an employee who has had an accident at work or who has been diagnosed with an occupational disease and the insured person is liable for the injury caused to the employee. In the event of the employee's death, the employee's dependents and the person who has borne the funeral expenses are also considered injured parties.
Employee a natural person in an employment or service relationship with the insured person; also includes member of the management board, procurator, trainee and temporary employee. Also includes persons who work for an insured person on the basis of a contract under the law of obligations (for example, an employment contract, authorization contract, agent's contract), provided that the insured person pays social tax on the basis of this contract.
An accident at work is physical harm sustained by or death of an employee which occurred while the employee was performing a job assigned by the employer or engaged in other work performed with their consent, during a break included within working hours or during other activities pursued in the interests of the employer. Physical harm or death that occurred in the cases listed but which is not causally connected to the employee's work or work environment shall not be considered an accident at work. The definition of an accident at work stems from the Occupational Health and Safety Act.
Occupational disease – an illness caused by a risk factor in the working environment or the nature of the work mentioned in the list of occupational diseases. The definition of an occupational disease stems from the Occupational Health and Safety Act. An occupational disease is a long-term health disorder, the main cause of which is a work-related physical, physiological, chemical or biological risk factor.
Policyholder and insured person
1. The policyholder is the person specified on the policy, who has entered into an insurance contract with LHV and who has the obligation to pay insurance premiums.
2. The insured person is the employer, i.e. the person whose related liability is insured. The insured person is the policyholder and/or the person specified on the policy. The policyholder is responsible for explaining the terms and conditions of the insurance contract to the insured person and fulfilling them.
Insurance coverage
1. The insured event is an accident at work that befell the employee during the insurance period (on the basis of the Occupational Health and Safety Act), as a result of which the insured person has a legal obligation to compensate the loss as an employer.
  An insured event can also be the diagnosis of an occupational disease in an employee (and/or former employee) during the insurance period, if occupational disease insurance coverage is indicated on the policy.
2. An insured event cannot be any of the exclusions given in clauses 27.1 – 27.15 of the terms and conditions.
3. Obligations to indemnify damage arising as a result of a single circumstance or event are considered to be a single insured event, and the agreed limit of indemnity or sum insured specified in the policy and a single deductible apply. The time at which the insured event occurred is considered to be the time of the occurrence of the first loss (which resulted in the obligation to compensate the loss), as a result of which the insured person became obligated to compensate the loss.
Insurance coverage for physical harm resulting from occupational disease
In addition to the coverage for losses caused by accidents at work, the policyholder can also choose insurance coverage for losses resulting from occupational diseases.
1. If insurance coverage for a loss resulting from an occupational disease is specified in the policy, the insurance contract shall apply to claims for compensation for physical harm resulting from an occupational disease.
2. Insurance coverage for physical harm resulting from occupational disease is valid under the following conditions:
  1. the person who files the claim for compensation for damages resulting from an occupational disease is an employee or former employee of the policyholder. For the purposes of these terms and conditions, a former employee is a person whose employment relationship with the policyholder had ended as of the time of signing the insurance contract, but not more than three years ago.
  2. the occupational disease has been diagnosed by a qualified occupational health doctor;
  3. the occupational disease was diagnosed during the valid insurance period;
  4. the policyholder and/or the insured person was not aware of the possible diagnosis of an occupational disease of his or her employee or former employee or that his or her employee or former employee has been sent for occupational disease detection studies and expertise when concluding the insurance contract.
3. LHV shall indemnify damage for which the insured person is liable according to the proportion of the time the employee or former employee worked for the insured person out of the total period of time during which the occupational disease developed.
  Example: The employee is diagnosed with an occupational disease that, according to the occupational health notice, developed between 1992 and 2022, i.e., for 30 years. In the years 2017-2022, he worked for the insured person, and this accounts for 20% of the period that was injurious to his health. The insured person's share in compensating the damage is therefore 20%.
4. Insurance coverage for health damage resulting from an occupational disease applies to the extent of the limit of indemnity specified in the policy for the insurance period, but not in an amount greater than 100,000 euros.
Exclusions
LHV does not indemnify claims for losses related to the following circumstances.
1. Occupational disease
  A loss resulting from an occupational disease diagnosed in an employee, unless, according to the policy, the insurance coverage described in clauses 26.1 – 26.4 of the terms and conditions applies.
2. Disease caused by work
  A loss resulting from a work-caused illness diagnosed in the employee.
3. Non-proprietary loss and income forgone
  A loss based on non-proprietary damage (i.e. moral damage) and forgone income, with the exception of the reduction or absence of income related to health problem of a third party (the basis for the calculation of the decrease in income is the injured person's average income subject to social tax for the last 12 months) and any other damage which is not material damage as described in clauses 32–33 of the terms and conditions.
4. Compulsory insurance
  Damage that is indemnified on the basis of compulsory insurance (including TPL motor insurance). Damage that is subject to indemnification on the basis of the Motor Third-Party Liability Insurance Act or other compulsory insurance, as well as on the basis of mandatory insurance (for example, in a situation where the employee did not have health insurance because the employer failed to fulfil its obligations arising from the law).
5. Claims between insured persons and claims from persons associated with the insured person
  LHV does not indemnify claims between the insured persons or the claims between the policyholder and the insured person.
6. Crime
  A loss caused by a crime, unless the crime was committed through negligence or gross negligence.
7. Wilful act
  Damage caused intentionally by the policyholder and/or the insured person and/or the injured party.
8. Fines, interest on arrears, interest
  Public sanctions (e.g. monetary penalty, fine, penalty payment, imprisonment) and private sanctions (e.g. earnest money, late payment, liquidated damages, guarantee, interest).
9. Previously known circumstances
  The loss arises from a circumstance or event of which the policyholder and/or the insured person was aware or should have been aware before concluding the insurance contract.
10. Increased liability arising from a contract
  Claims based on the violation of contractual obligations (including collective agreement) if they expand the insured person's liability, restrict the insured person's rights or otherwise differ from the terms and conditions for compensation provided by law. Among other things, additional compensation agreed in the collective agreement is not indemnified unless separately agreed in the policy.
11. State of intoxication
  A loss if its occurrence is causally connected to the employee being under the influence of alcohol, drugs, toxic or other intoxication.
12. Unprofessional or illegal activity
  A loss caused by the activity for which the insured person or its employee lacked the necessary permit, qualification or licence.
13. Force majeure and other events beyond control of employer
  Force majeure is a circumstance beyond the control of the insured person. Among other things, the insurance contract does not apply to, e.g., losses caused by a natural disaster (a natural phenomenon of an extraordinary nature), war or war-like activity, coup d'état, uprising, terrorism, revolution, state of emergency, civil unrest, act of a foreign enemy, strike, crime (including computer crimes and cybercrime), expropriation, confiscation of assets,nationalization and any other similar event.
14. Explosives and weapons handling
  Damage caused by any explosive (including blasting), explosive product, pyrotechnic product or weapons (including firearms, chemical and biological weapons and electromagnetic weapons).
15. Other risk factors in regard to the environment and health
  Damage caused by asbestos, tobacco or tobacco products, toxic mould, drugs, any infections and communicable diseases (including AIDS, HIV and hepatitis), dioxin, genetically modified substance or organism, animal disease agents, pesticides, radioactive radiation, nuclear energy, magnetic, electric or electromagnetic field.
Validity of the insurance contract
1. The insurance contract is valid for the insurance conditions, period and territory agreed in it. Unless insurance territory is specified in the policy in more detail, the insurance contract shall apply to insured events that occurred in the Republic of Estonia.
2. The insurance contract applies to claims filed against the insured person within three years after the end of the insurance period but where the underlying act that caused the damage occurred during the insurance period. The insured person is obliged to inform LHV as soon as possible of the claims filed against them.
3. If the coverage of the insurance contract extends outside the Republic of Estonia, then law shall be applied based on the provisions of the Private International Law Act. However, the insurance coverage does not apply to claims subject to the law and jurisdiction of a country other than the one indicated as the insurance territory.
Sum insured, limit of indemnity and deductible
1. The sum insured is the amount specified in the policy, which is the maximum disbursement amount for all insurance indemnities (including legal assistance fees) payable during the insurance period.
2. The limit of indemnity is the maximum amount of insurance indemnity, specified in the policy, to be paid out for the insurance period, insured event, legal expenses, type of damage or insurance risk. The limit of indemnity is not additional to the sum insured, but is contained within in it.
3. Deductible is the amount, specified on the policy, that is to be borne by the policyholder in case of an insured event. In relation to claims arising from the same insured event, the deductible is taken into account only in the case of the first disbursed insurance benefit.
Legal expenses
1. For the purpose of the terms and conditions, legal costs are out-of-court legal aid, court and expert analysis costs that accompany related to the defence against and processing of claims against the insured person.
2. Legal expenses are indemnified by LHV if they are necessary to defend against and process claims. LHV shall indemnify legal assistance expenses even if the claim against the insured person later turns out to be baseless.
3. Only legal expenses agreed in advance with LHV will be indemnified.
4. LHV will not indemnify legal expenses if indemnification of damages is excluded by the terms and conditions.
5. A deductible is not charged in respect to legal expenses.
6. The insured person is obliged to refund legal costs to LHV in the amount indemnified by LHV if the court orders a third party to bear the insured person's legal costs.
7. LHV shall be released from further obligation to indemnify legal expense if, it turns out during the loss process that cause of the loss was an exclusion specified in the terms and conditions. LHV shall be released from its performance obligation at the moment it became aware of the exclusion applicable to the loss event.
Insurance indemnity and indemnifiable loss
Insurance indemnity
1. The indemnity is a sum of money that is paid out to the policyholder to compensate it for material damage and the necessary legal expenses incurred as a result of an insured event.
2. Under general third party liability insurance, LHV indemnifies material damage caused to a third party caused by the insured person in the course of insured activity specified in the policy, and legal assistance expenses incurred by the insured person in order to contest claims against the insured person.
3. In the case of employer's liability insurance, LHV indemnifies material damage caused to the employee due to an accident at work or occupational disease, and legal assistance expenses incurred by the insured person in order to contest claims against the insured person.
Indemnifiable material damage
LHV indemnifies the following material damage:
1. property damage, i.e., the cost incurred as a result of damage or destruction of an item belonging to the injured person on repairing or replacing the item with an equivalent one. If it is not possible to repair the item or purchase a new equivalent item, LHV shall compensate the value of the irreparable/unavailable item;
2. personal injury, i.e., expenses incurred by the injured person as a result of physical harm, bodily injury or death;
3. material damage, which is not property damage or personal injury, but a direct consequence of said damage. LHV indemnifies up to 20% of the personal injury and/or property damage to the injured party for other material damage (for example, expenses for filing claims related to damage compensation) that is directly related to the property damage and/or personal injury.
Non-indemnifiable damage
LHV does not indemnify:
1. non-material or moral damage, which primarily includes the physical and mental pain and suffering of the injured person;
2. lost income, with the exception of a decrease or loss of earnings related to physical harm sustained by a person.
Safety requirements
LHV has the right to refuse or reduce indemnity in the event that the policyholder and equivalents have not followed the safety requirements established in the legislation, user manuals and conditions and as a result of this damage occurred or there was a causal connection with the loss event.
1. When it comes to compliance with safety requirements, the insured persons are considered equivalents of the policyholder, and in the case of general third party liability insurance, so are the persons used in economic activities.
2. The policyholder and equivalents are obliged to comply with the safety requirements arising from legislation and user manuals.
3. The policyholder and equivalents are obliged to fulfil a reasonable duty of care and to act with ordinary care in order to avoid the occurrence of a deleterious consequence.
4. The policyholder and equivalents are obliged to take measures to prevent recurring damage.
5. In addition, the safety requirements set forth in clause 17 of the terms and conditions must be followed.
Principles of indemnification
LHV proceeds from the following principles in regard to indemnifying damage.
1. If more than one person files a claim against the insured person in the same insured event and the sum of the claims exceeds the sum insured specified in the policy, LHV shall indemnify the claims proportionally based on the amount of claims up to the amount of liability insurance specified in the policy (on condition that the claims are filed at the right time and LHV has not already indemnified other claims).
2. If the insured person is liable jointly with other persons (joint and several liability) for damage caused to a third party, LHV shall determine the insurance indemnity based on the amount of the claim against the insured person, not on the proportion of the insured person's liability in the relationship between the joint and several debtors.
3. In indemnifying damage, LHV shall proceed from legislation in force at the time of the insured event, the terms and conditions of the insurance contract, the sum insured stated in the policy, the limit of indemnity and the deductible.
4. The sum insured and limits of indemnity applicable to the insurance period shall be reduced equally by the insurance indemnity and legal assistance expenses paid out under the insurance contract. An additional contract may be concluded in order to reinstate the sum insured and the limit of indemnity.
5. If the policyholder insures the same insurance risk through several insurers and the total amount of insurance indemnities paid by the insurers exceeds the amount of the loss or the total of the sums insured exceeds the insurable value, the insurers shall be jointly and severally liable (multiple insurance).
6. In addition, in regard to indemnifying damage, LHV shall proceed from the general principles of indemnification stated in clauses 37.1 – 37.3 of the terms and conditions.
Action to be taken in case of a loss event
In the event of a loss, the policyholder must:
1. take measures to prevent or reduce further damage;
2. report the incident immediately by calling 112 in case of suspicion of intentional actions of a third party or in the event of a fire or explosion; and in other cases, to the relevant competent authorities or persons;
3. notify LHV of the loss event as soon as possible, but no later than within five days after the loss event occurred or became known about it;
4. in the case of employer's liability insurance, to immediately inform the Labour Inspectorate of the occurrence of an accident at work or the diagnosis of an occupational disease and to investigate the causes and circumstances of the accident at work or occupational disease in accordance with the procedure provided for in legal acts;
5. in the case of general third party liability insurance and employer's liability insurance, forward to LHV any claim against the policyholder, and inform LHV of the initiation of legal or other proceedings that may be the basis for liability of the insured person and of any circumstance that may result in the occurrence of an insured event. This must be done promptly, no later than within five days from the time when the insured person became aware of the fact or that the claim was filed. The insured person may not give consent or promises related to indemnification until they have been coordinated with LHV;
6. in the case of general third party liability insurance and employer's liability insurance, notify LHV as soon as possible in a form reproducible in writing of compensation of a loss by a third party or if a third party abandons its claim for damages;
7. comply with LHV's instructions and, if possible, to keep the place of occurrence of the insured event intact until further instructions from LHV;
8. submit the damaged item or its remnants to LHV or a person designated by LHV for inspection after the insured event. Restoration of a damaged item or disposal of a destroyed item may not begin without LHV's consent;
9. provide LHV with the necessary information on the circumstances of the loss event and the potential cause of the damage and to provide LHV with access to the damaged item;
10. take into account that LHV may, in order to establish the circumstances of the loss event, require from the policyholder, inter alia:
  1. documents proving the expenses incurred due to the loss event;
  2. a certificate issued by the police in case of theft, vandalism and intrusion;
  3. a certificate issued by the Rescue Board in the event of fire;
  4. explanations regarding the loss event.
General principles of indemnification
LHV proceeds from the following principles in indemnifying losses.
1. In case of an insured event, LHV indemnifies the direct and justified costs of restoration or replacement of the insured items and other costs provided in the Terms and Conditions, less the deductible specified in the insurance contract.
2. LHV shall make the decision on indemnification within ten working days after it has received all necessary information on the loss event and the amount of damage. If, for reasons beyond LHV's control, it is not possible for LHV to determine the full amount of the damage, LHV will first indemnify the part of the loss where the amount of damage is clear. If there is good reason for doing so, LHV may extend the deadline for making a decision on indemnification. This includes a case where the compensation depends on circumstances being established in court or extrajudicial proceedings, inter alia, if a proceeding has been initiated in connection with the loss event and the circumstances to be established at the proceeding have a bearing on determining LHV's indemnification obligation.
3. LHV shall not indemnify the share of taxes (e.g., VAT) that are refundable under law.
LHV’s right of recourse
In the event of payment of the insurance indemnity, the right of claim held by the policyholder, the insured person or the beneficiary against the person responsible for the loss, including policyholder equivalents, shall transfer to LHV in the extent of the amount indemnified.
If the policyholder, insured person or beneficiary waives their claim against the person responsible for the loss, LHV shall be released from the performance obligation to the extent to which LHV could have sought compensation from the person responsible for the loss.
Obligations of the policyholder
The policyholder is obliged to:
1. pay insurance premiums in the agreed amount and according to the agreed procedure;
2. notify LHV of the loss event as soon as possible, but no later than within five days after the loss event occurred or was learned of;
3. provide LHV with complete and correct information for the assessment of the insurance risk and, upon concluding the insurance contract, notify LHV of all significant circumstances known to it that affect or may affect the decision to enter into the insurance contract on the agreed terms;
4. inform LHV if multiple insurance arises;
5. notify LHV as soon as possible if any of the information submitted to LHV turns out to be false or incomplete;
6. enable the LHV representative to inspect the insurance location, the insured object and the documents and information necessary for concluding the insurance contract;
7. explain to all equivalents the obligations and requirements arising from the insurance contract. Violation of obligations by the said persons shall be deemed the equivalent of breach of contract by the policyholder;
8. notify LHV immediately of an increase in the insurance risk, the transfer of the insured object or the occurrence of circumstances that significantly affect the business activity (for example, the expansion of production activities, the addition of dangerous activities to the insurance location). A situation where the circumstances affecting the insurance risk, which LHV requested information about when concluding the insurance contract, have changed and as a result the probability of an insured event occurring has increased shall be considered to be an increase in insurance risk;
9. do its utmost to prevent an insured event and reduce the loss;
10. avoid a possible increase in insurance risk;
11. if a stolen item is recovered after LHV paid the insurance indemnity for it, hand over the recovered item to LHV or refund to LHV the insurance indemnity paid for the item;
12. refund to LHV the insurance indemnity paid if, after indemnification of the damage, circumstances precluding indemnification by LHV become apparent or if the damage is indemnified by a third party;
13. to enable LHV to find out the circumstances related to the insured event in order to identify the cause, amount and persons responsible for the loss, to involve experts if necessary, and/or to authorize LHV to obtain information to determine the circumstances behind the insured event. If the policyholder does not fulfil said obligation, and due to this LHV cannot determine the actual loss or other important circumstances, LHV shall be released from the obligation to perform the insurance contract;
14. organize their accounting on the basis of the legal acts and valid standards of the Republic of Estonia.
Obligations of LHV
LHV is obliged to:
1. indemnify the loss incurred in the event of an insured event, among other things, the expenses necessary for the policyholder to determine the loss pursuant to the terms and conditions. LHV shall indemnify the costs of hiring an expert and adviser if the policyholder has coordinated these costs with LHV beforehand;
2. introduce the documents related to the insurance contract to the policyholder before concluding the insurance contract and keep confidential the information which has become known to LHV in connection with the insurance contract;
3. issue to the policyholder a replacement policy, as well as copies of the policyholder's statements of intent submitted in a form that can be reproduced in writing, and data and copies of documents that affect the policyholder's rights or obligations arising from the insurance contract, if such activity is not in conflict with legal acts;
4. begin claims adjustment immediately after receiving a notice of loss and determine the amount of loss to be indemnified;
5. after receiving a notice of loss, inform the policyholder which documents the policyholder must submit to LHV in order to determine the cause and amount of the loss;
6. make a decision on indemnifying loss or refusal to do so within ten working days of receipt of all required documents and determination of the amount of damage and the circumstances in which it occurred;
7. pay out the insurance indemnity within a reasonable time, but no later than two weeks after the end of the claims adjustment and the decision on indemnity, unless otherwise agreed. If LHV delays the performance of a monetary obligation, it is obliged to pay late interest at the rate provided in the Law of Obligations Act;
8. reimburse, in the agreed extent, the policyholder for the costs borne by the policyholder in relation to the prevention or reduction of the damage, which the policyholder considered necessary, even if bearing these costs did not yield the desired result. LHV must, in the agreed extent, indemnify the policyholder for expenses incurred on the basis of its instructions even if they, together with other compensation, exceed the sum insured specified in the policy;
9. deny insurance indemnity if the payee is subject to a corresponding restrictive international financial sanction established on the basis of UN resolutions or corresponding legal acts of the European Union or the Republic of Estonia.
Release from performance of insurance contract
LHV has the right to deny or reduce the indemnity if:
1. the event is one where resulting damage is not indemnified on the basis of the Terms and Conditions;
2. damage occurred to objects that are not insured under the Terms and Conditions;
3. the policyholder or an equivalent has caused the damage intentionally, due to gross negligence, or in a state of alcohol or drug intoxication, and the corresponding state is causally connected to the loss event;
4. the policyholder has intentionally submitted false or misleading information to LHV or failed to submit significant information concerning the material circumstances of the insurance contract or loss event;
5. the policyholder has not paid the insurance premium by the prescribed deadline or by an additional deadline and the insured event occurs after the expiry of the additional deadline, unless the policyholder's failure to make the payment was due to a circumstance beyond the control of the policyholder;
6. the policyholder has not complied with safety requirements or other obligations arising from the terms and conditions or the law, and such behaviour has a causal connection with the occurrence or increase of loss;
7. the insured person abandons its claim or the right to claim against the person who caused the damage, or if realization of LHV's right of recourse turns out to be impossible due to the fault of the insured person (for example, the term for filing a claim expired, failure to submit the necessary documents);
8. the insured person compensates a third party for damage or acknowledges a third party's claim for damage in a situation where the insured person's liability or its extent of its liability is not clear;
9. the payee is subject to a relevant international financial sanction established by the Office of Foreign Assets Control (OFAC) under the relevant legislation of the United States of America or the relevant legislation of HM Treasury United Kingdom.
Termination and cancellation of the insurance contract and withdrawal from contract
The insurance contract shall expire:
1. at the end of the insurance period;
2. upon cancellation of the insurance contract;
3. upon withdrawal from the insurance contract;
4. by agreement between the policyholder and LHV;
5. on other grounds provided for by legal acts.
LHV has the right to cancel the insurance contract, following the cancellation deadlines provided by legislation, in the event that:
1. the policyholder has not performed the insurance contract, among other things, failure to pay the insurance premium by the deadline or additional deadline;
2. the policyholder has intentionally submitted false information to LHV regarding the insurance contract and/or the circumstances of the insured event;
3. an insured event has occurred and LHV has made a decision on indemnification or refusal to indemnify the damage;
4. the insurance risk has increased (including a situation if the insurance risk has increased independently of the policyholder and the policyholder does not agree to amend the insurance contract retroactively starting from the increase of the insurance risk);
5. the insured object has been disposed of;
6. other grounds for cancellation of the insurance contract provided by legislation become apparent.
Withdrawal from insurance contract
1. LHV has the right to withdraw from the insurance contract if the policyholder has failed to notify LHV of material circumstances affecting the insurance risk when concluding the insurance contract and/or has knowingly submitted false information (including deliberately avoiding reporting a material circumstance). LHV may withdraw from the insurance contract within one month after LHV became aware or should have become aware of the policyholder's failure to perform the notification obligation.
2. If the policyholder has not paid the first insurance premium within 14 days after concluding the insurance contract, LHV may withdraw from the insurance contract until the payment is made. If the paid insurance premium, including an instalment thereof, is less than the amount payable specified in the policy, the insurance premium shall be deemed not to have been paid. LHV shall be presumed to have withdrawn from the insurance contract if it does not file an action for the collection of the insurance premium within three months as of the premium becoming collectible.
3. If the insurance contract is entered into through telecommunications, the policyholder has the right to withdraw from the insurance contract within 14 days as of the conclusion of the insurance contract. The policyholder must submit a written application to LHV regarding the withdrawal in a form that can be reproduced in writing. In the event of withdrawal, LHV shall refund the paid insurance premium. If LHV has provided the policyholder with immediate insurance coverage, the policyholder shall not have the right of withdrawal.
4. If the insurance contract is entered into for longer than one year, the policyholder has the right to withdraw from the insurance contract within 14 days as of the conclusion of the insurance contract. The policyholder must submit a written application to LHV regarding the withdrawal in a form that can be reproduced in writing. In the event of withdrawal, LHV shall refund the paid insurance premium. If LHV has provided the policyholder with immediate insurance coverage, the policyholder shall not have the right of withdrawal.
5. If the insurance contract has been cancelled or a party has withdrawn from it, then from the end of the insurance contract the parties to the insurance contract no longer have obligations arising from the contract, unless the insured item has been destroyed as a result of an insured event or the insurance indemnity has been paid out in the entire sum insured during the insurance period, LHV has the right to receive insurance premiums for the current insurance period. Other rights and obligations of the parties shall remain until the expiry of the insurance contract.
Communication
All notices necessary for the performance of the insurance contract shall be submitted in a form that can be reproduced in writing.
Processing of personal data
LHV is entitled to process personal data related to the insurance contract on the basis of LHV's Principles of Processing Client Data and to disclose information related to the insurance contract to a third party who is entitled under LHV's Principles of Processing Client Data to receive information.
LHV has the right to retain recordings obtained by telecommunication or other means in connection with the performance of the insurance contract and, if necessary, use them to prove the declarations of intent submitted by the policyholder.
Expiry of claims arising from insurance contract
The limitation period for claims arising from the insurance contract is three years. The limitation period shall run from the end of the calendar year in which the claim becomes collectible.
If the policyholder has submitted a claim for compensation to LHV and LHV has notified the policyholder in writing of non-indemnification or reduction of indemnification, LHV shall be released from the performance of obligation if the policyholder has not filed a lawsuit to compel the performance of the obligation within one year from receiving the response regarding denial of claim. LHV shall not be released from the obligation of performance if it fails to inform the policyholder of the legal consequences of the expiry of the one-year term in its response.
Conflicts in the insurance contract documents
If there are any inconsistencies in the documents of the insurance contract, the interpretation shall be based on the presumption that the special terms and conditions of the insurance contract specified in the policy take precedence over the general terms and conditions.
If the terms and conditions have been translated into a foreign language, the Estonian-language terms and conditions shall take precedence in interpretation in case of a dispute.

Corporate insurance

The Terms and Conditions of LHV Corporate Insurance describe the scope of insurance coverage, action to be taken in the case of a loss event and the principles of indemnification.

Contact details for the insurer

Definitions

Property insurance

Insured object

Insurance coverage

Extensions of insurance coverage

Exclusions

Insurable value

Damage prevention and damage reduction costs and other additional costs

Principles of indemnification for property insurance

Business interruption insurance

Insured object

Insurance coverage

Exclusions

Damage reduction and prevention costs

Insurable value

Indemnity period

Principles of indemnification for business interruption insurance

Underinsurance, overinsurance and multiple insurance

Deductible

Safety requirements

General third party liability insurance

Definitions

Policyholder and insured person

Insurance coverage

Extensions of insurance coverage

Exclusions

Employer's liability insurance

Definitions

Policyholder and insured person

Insurance coverage

Insurance coverage for physical harm resulting from occupational disease

Exclusions

Validity of the insurance contract

Sum insured, limit of indemnity and deductible

Legal expenses

Insurance indemnity and indemnifiable loss

Safety requirements

Principles of indemnification

Action to be taken in case of a loss event

General principles of indemnification

LHV’s right of recourse

Obligations of the policyholder

Obligations of LHV

Release from performance of insurance contract

Termination and cancellation of the insurance contract and withdrawal from contract

Communication

Processing of personal data

Expiry of claims arising from insurance contract

Conflicts in the insurance contract documents

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