DAS Legal Expenses Insurance Company Limited. Head and Registered Office: DAS House, Quay Side, Temple Back,

Bristol BS1 6NH England. Registered in England and Wales, number 103274.

Thank you for insuring with DAS. As a DAS Commercial Legal Protection policyholder, your business is

now protected by Europes leading legal expenses insurer.

To make sure that you get the most from your DAS cover, please take time to read the policy which

explains the contract between us. Please take extra care in following the procedures under Employment

If you have any questions or would like more information, please contact Insurance Services.

Once you have sent us the details of your claim and we have accepted it, we will start to resolve your

legal problem.

Always report your claim to us in writing and as soon as possible. We can send you a claim form to help

you do this.

We normally deal with claims through our Legal Claims Centre but sometimes we use appointed lawyers.

Claims outside the United Kingdom may be dealt with by other DAS offices elsewhere in Europe.

As a member of the Association of British Insurers, DAS subscribes to the General Insurance Claims

Code. This document sets down the service standards that you expect as a policyholder if you have to

make a claim. You can see the code on the Internet at www.abi.org.uk and at www.das.co.uk. If you

would like to receive a written copy of the code please write to us or the ABI.

Legal Claims Centre, DAS Legal Expenses Insurance Company Limited, DAS House, Quay Side, Temple

Back, Bristol BS1 6NH.

You can phone us any time on 0117 934 2111 for advice on any commercial legal or tax problem affecting

your business. If you require a claim form you can phone us on 0117 934 2000.

Please do not ask for help from a solicitor or accountant before we have agreed. If you do, we will not

pay the costs involved.

We will always try to give you a quality service. If you think we have let you down, please write to our

Managing Director at Head Office and he will try to help.

If you are still not happy, you can contact the Association of British Insurers at 51 Gresham Street,

London EC2V 7HQ. Telephone 0207 600 3333.

If you use this service, it does not affect your right to take legal action.

This policy, the policy schedule and any endorsement shall be considered as one document.

The proposal or any information supplied by the policyholder shall be incorporated in the contract.

This policy will cover the insured person in respect of any insured incident arising in connection with the

business shown in the policy schedule if the premium has been paid.

We agree to provide the insurance in this policy in accordance with the operative covers shown in the

policy schedule as long as:

(a) the date of occurrence of the insured incident happens during the period of insurance and within

the territorial limit; and

(b) any legal proceedings will be dealt with by a court, or other body which we agree to, in the

territorial limit; and

(c) in civil claims it is always more likely than not that an insured person will recover damages (or

obtain any other legal remedy which we have agreed to) or make a successful defence.

For all insured incidents, w e will help in appealing or defending an appeal as long as the insured person

tells u s within the time limits allowed that they want u s to appeal. Before w e pay any costs and expenses

for appeals, we must agree that it is always more likely than not that the appeal will be successful.

If an appointed representative is used, we will pay the costs and expenses incurred for this.

We will pay Compensation Awards that we have agreed to.

The most we will pay for all claims resulting from one or more event arising at the same time or from the

same originating cause is £50,000.

DAS Legal Expenses Insurance Company Limited.

As shown in the policy schedule.

The policyholder and the policyholders directors, partners, managers and employees.

The lawyer, accountant or other suitably qualified person, who has been appointed to act for an

insured person in accordance with the terms of this policy.

The period for which we have agreed to cover the insured person and for which the premium has

been paid.

An extensive examination by the Inland Revenue which considers all aspects of the policyholders

tax affairs, excluding those enquiries which are limited to one or more specific aspects of the

policyholders self assessment and/or corporation tax return.

An examination by the Inland Revenue which considers one or more specific aspects of the

policyholders self assessment and/or corporation tax return.

(1) For civil cases (other than under insured incident - 4 Tax Protection), the date of occurrence is

when the cause of action first accrued.

(2) For criminal cases, the date of occurrence is when the insured person commenced or is alleged

to have commenced to violate the criminal law in question.

(3) For full enquiries or aspect enquiries, the date of occurrence is when the Inland Revenue first

notifies in writing the intention to make enquiries.

For Employers' Compliance and Value Added Tax disputes, the date of occurrence is when the

relevant authority sends an assessment or written decision to the policyholder.

All reasonable and necessary costs chargeable by the appointed representative on a

standard basis.

Also the costs incurred by opponents in civil cases if an insured person has been ordered to pay

them, or pays them with our agreement.

A reasonable amount in respect of all costs reasonably incurred by the appointed representative.

The insured person's salary or wages for the time that the insured person is off work to attend

any arbitration, court or tribunal hearing at the request of the appointed representative or while

attending jury service. We will pay for each half or whole day that the court, tribunal or the

insured person's employer will not pay for.

The amount we will pay is based on the following:

*

the time the insured person is off work including the time it takes to travel to and from

the hearing. This will be calculated to the nearest half day assuming that a whole day is

eight hours;

*

if the insured person works full time, the salary or wages for each whole day equals 1/250th

of the insured person's yearly salary or wages;

*

if the insured person works part-time, the salary or wages will be a proportion of the

insured person's weekly salary or wages.

For insured incidents 2 Legal Defence (excluding 2(4)), and 3(b) Bodily Injury

The European Union, the Isle of Man, the Channel Islands, Albania, Andorra, Bosnia

Herzegovina, Bulgaria, Croatia, the Czech Republic, Gibraltar, Hungary, Iceland, Liechtenstein,

Macedonia, Malta, Monaco, Montenegro, No rw a y, Poland, Romania, San Marino, Serbia,

Slovakia, Slovenia, Switzerland and Turkey (west of the Bosphorus).

For all other insured incidents

The United Kingdom of Great Britain and Northern Ireland, the Isle of Man andthe Channel Islands.

We will defend the policyholders legal rights:

(1) prior to the issue of legal proceedings in a court or tribunal following the dismissal of an

employee; or

(2) in the resolution of unfair dismissal disputes under the ACAS Arbitration Scheme; or

(3) in legal proceedings in respect of any dispute with

(a) an employee or ex-employee or a trade union acting on behalf of an employee or

ex-employee which arises out of, or relates to, a contract of employment with the

policyholder; or

(b) an employee, prospective employee or ex-employee arising from an alleged breach of

their statutory rights under employment legislation.

(1) Any employment dispute where the cause ofaction arises within the first 90 days of the

indemnity provided by the policy.

(2) Any dispute with an employee who was subject to a written or oral warning (formal or

informal) within 180 days immediately preceding the inception date of the indemnity

provided by the policy if the date of occurrence was within the first 180 days of the

indemnity provided by the policy.

(3) Any redundancy or alleged redundancy or unfair selection for redundancy arising within the

first 180 days of the indemnity provided by the policy.

(4) Any claim in respect of damages for personal injury or loss of or damage to property.

(5) Any claim arising from or relating to any transfer of business which falls within the scope of

the Transfer of Undertakings (Protection of Employment) Regulations 1981 as amended by

the Collective Redundancies and Transfer of Undertaking Regulations (Protection of

Employment) (Amendment) Regulations 1999, or the Acquired Rights Directive 2001 and any

amending legislation.

We will pay:

(1) any basic and compensatory award; and/or

(2) an order for compensation following a breach of the policyholders statutory duties under

employment legislation

in respect of a claim we have accepted under insured incident 1(a).

(1) Any compensation award relating to the following:

trade union activities, trade union membership or non-membership;

pregnancy or maternity rights;

health and safety related dismissals brought under section 44 of the Employment Rights

Act 1996;

statutory rights in relation to trustees of occupational pension schemes;

statutory rights in relation to Sunday shop and betting work.

(2) Non-payment of money due under the relevant contract of employment or statutory

provision relating thereto.

(3) Any award ordered as a result of a breach of statutory rights in relation to the provision of

relevant records to employees under the National Minimum Wage Act 1998.

(4) Any compensation award or increase in compensation award ordered by the tribunal for

failure to comply with a recommendation it has made, including non-compliance with a

reinstatement or re-engagement order.

We will negotiate for the policyholders legal rights against an employee or ex-employee to

recover possession of premises owned by, or for which the policyholder is responsible.

Any claim relating to defending the policyholders legal rights other than defending a counter-c l a i m .

At the policyholders request

(1) We will defend the insured person's legal rights:

(a) prior to the issue of legal proceedings when dealing with the

Police

Health and Safety Executive and/or Local Authority Health and Safety Enforcement Officer

where it is alleged that the insured person has or may have committed a criminal offence; or

(b) following an event which leads to the insured person being prosecuted in a court of criminal

jurisdiction; or

(c) if civil action is taken against the insured person for compensation under section 13 of the

Data Protection Act 1998. We will also pay any compensation award made against the

insured person under section 13 of the Data Protection Act 1998.

(2) We will defend the policyholders legal rights following civil action taken against the policyholder

for wrongful arrest in respect of an accusation of theft alleged to have been carried out during the

period of insurance.

(3) We will defend the insured person's (other than the policyholder) legal rights if:

(a) an event arising from their work as an employee leads to civil action being taken against

them under legislation for unlawful discrimination on the grounds of sex, sexual orientation,

race, disability, age, religious belief or political opinion; or

(b) civil action is taken against them as a trustee of a pension fund set up for the benefit of the

policyholders employees.

(4) We will represent the insured person in appealing against the imposition or terms of any

Statutory Notice issued under legislation affecting the policyholders business.

(5) We will represent the policyholder in appealing against the refusal of the Information

Commissioner to register the policyholders application for registration.

(6) We will pay the attendance expenses of an insured person for jury service.

Any claim which leads to the insured person being prosecuted for infringement of road traffic laws

or regulations in connection with the ownership, driving or use of a motor vehicle.

We will negotiate for the policyholders legal rights in any civil action relating to material

property which is owned by, or the responsibility of the policyholder, following:

(1) any event which causes or could cause physical damage to such material property; or

(2) any nuisance or trespass.

Any claim relating to the following:

(1) a contract entered into by the policyholder;

(2) goods in transit or goods lent or hired out;

(3) goods at premises other than those occupied by the policyholder unless the goods are at such

premises for the purpose of installations or use in work to be carried out by the policyholder;

(4) mining subsidence;

(5) defending the policyholders legal rights other than in defending a counter-claim;

(6) a motor vehicle owned or used by, or hired or leased to an insured person other than

damage to motor vehicles where the policyholder is engaged in the business of selling

motor vehicles.

At the policyholders request, we will negotiate for an insured person's and their family

members’ legal rights following an event which causes the death of, or bodily injury to them.

Any claim relating to the following:

(1) any illness or bodily injury which develops gradually or is not caused by a specific or

sudden accident; or

(2) defending an insured person's or their family members’ legal rights other than in defending a

counter-claim; or

(3) a motor vehicle owned or used by, or hired or leased to an insured person or their

family members.

We will negotiate on behalf of the policyholder and represent them in any appeal proceedings in

respect of a full enquiry and/or aspect enquiry.

We will negotiate on behalf of the policyholder and represent them in any appeal proceedings in

respect of a dispute concerning the policyholders compliance with Pay As You Earn or Social

Security Regulations following a review by the Inland Revenue or the Department of Social

Security Contributions Agency.

We will negotiate on behalf of the policyholder and represent them in any appeal proceedings

following an assessment issued by HM Customs and Excise in respect of Value Added Tax due.

(1) In respect of aspect enquiries the first £200 of costs and expenses in each and every claim.

(2) Any insured incident arising from a tax avoidance scheme.

(3) Any insured incident caused by the failure of the policyholder to register for Value Added Ta x.

(4) Any insured incident arising from any investigation or enquiries undertaken by the Inland

Revenue Special Investigation Section or Special Compliance Office.

(5) Any insured incident arising from any investigation or enquiry by HM Customs and Excise into

alleged dishonesty or alleged criminal offences.

Any claim reported to u s more than 180 days after the date the insured person should have known about

the insured incident.

Costs and expenses incurred before the written acceptance of a claim by us.

Fines, penalties, compensation or damages which the insured person is ordered to pay by a court or

other authority other than compensation awards as covered under insured incident 1(b)

Compensation Awards and 2 Legal Defence.

Any claim relating to patents, copyrights, trademarks, merchandise marks, registered designs,

intellectual property, secrecy and confidentiality agreements.

Any insured incident deliberately or intentionally caused by an insured person.

A dispute with us not otherwise dealt with under Condition 7.

Any claim relating to a shareholding or partnership share in the policyholder unless such

shareholding was acquired under a scheme open to all employees of the policyholder or a substantial

number of them of a certain minimum grade other than the directors or partners of the policyholder.

An application for judicial review.

Any claim caused by, contributed to by or arising from:

ionising radiation or contamination by radioactivity from any nuclear fuel or from any nuclear

waste from burning nuclear fuel;

the radioactive, toxic, explosive or other hazardous properties of any explosive nuclear assembly

or nuclear part of it;

w a r, invasion, foreign enemy hostilities (whether war is declared or not), civil war, rebellion,

revolution, military force or coup;

pressure waves caused by aircraft or any other airborne devices travelling at sonic or

supersonic speeds.

10 Legal action an insured person takes which we or the appointed representative have not agreed to

or where the insured person does anything that hinders us or the appointed representative.

11 When either at the commencement of or during the course of a claim, the policyholder is bankrupt

or has filed a bankruptcy petition or winding-up petition, or has made an arrangement with its

creditors, or has entered into a deed or arrangement or is in liquidation or part or all of its affairs or

property are in the care or control of a receiver or administrator.

12 Any claim directly or indirectly caused by or resulting from any device failing to recognise, interpret

or process any date as its true calendar date.

13 Any claim relating to any non-contracting party’s right to enforce all or any part of this policy. The

Contracts (Rights of Third Parties) Act 1999 does not apply to this policy.

An insured person must:

(a) keep to the terms and conditions of this policy;

(b) notifyu s immediately of any alteration which may materially affecto u r assessment of the risk;

(c) take reasonable steps to keep any amount we have to pay as low as possible;

(d) try to prevent anything happening that may cause a claim;

(e) send everything we ask for, in writing;

(f) give us full details of any claim as soon as possible and give us any information we need.

( a ) We can take over and conduct in the name of the insured person, any claim or legal

proceedings at any time.

We can negotiate any claim on behalf of an insured person.

(b) If we agree to start legal proceedings and it becomes mandatory for an insured person to be

represented by a lawyer, or if there is a conflict of interest, an insured person can choose an

appointed representative by sending us the suitably qualified person's name and address.

We may choose notto accept the choice of representative, but only in exceptional circumstances.

If there is a disagreement over the choice of appointed representative, another suitably qualified

person can be appointed to decide the matter.

(c) Before an insured person chooses a lawyer or an accountant, we can appoint an appointed

representative.

(d) An appointed representative will be appointed by us and represent an insured person according

to our standard terms of appointment. The appointed representative must co-operate fully with

us at all times.

(e) We will have direct contact with the appointed representative.

(f) An insured person must co-operate fully with us and with the appointed representative and

must keep us up-to-date with the progress of the claim.

(g) An insured person must give the appointed representative any instructions that we require.

(a) An insured person must tell us if anyone offers to settle a claim and must not agree to any

settlement without our written consent.

(b) If an insured person does not accept a reasonable offer to settle a claim, w e may refuse to pay

further costs and expenses.

(c) We may decide to pay the insured person the amount of damages that the insured person is

claiming or is being claimed against them instead of starting or continuing legal proceedings.

(a) If we ask, an insured person must tell the appointed representative to have costs and

expenses taxed, assessed or audited.

(b) An insured person must take every step to recover costs and expenses that we have to pay and

must pay us any costs and expenses that are recovered.

If an appointed representative refuses to continue acting for an insured person or if an insured

person dismisses an appointed representative, the cover we provide will end at once, unless we

agree to appoint another appointed representative.

If an insured person settles a claim or withdraws their claim without our agreement, or does not give

suitable instructions to an appointed representative, the cover we provide will end at once and we

will be entitled to re-claim any costs and expenses paid by us.

If we and an insured person disagree about the choice of appointed representative, or about the

handling of a claim, we and the insured person can choose another suitably qualified person to

decide the matter. We must both agree to this in writing. If we cannot agree with the insured person

about the choice of the second suitably qualified person, we will ask the president of a relevant

national law society to choose a suitably qualified person.

Whoever loses the disagreement will have to pay the costs of settling it.

We may at our discretion require the policyholder to obtain an opinion from counsel at the

policyholders expense as to the merits of a claim or proceedings. If counsel’s opinion indicates that

there are reasonable grounds for the pursuit or defence of a claim or proceedings, the cost of

obtaining the opinion will be paid by us.

We can cancel this policy at any time as long as w e tell the policyholder at least 21 days beforehand.

The policyholder can cancel this policy at any time as long as w e are told at least 21 days beforehand.

10 We will not pay any claim covered under any other policy, or any claim that would have been

covered by any other policy if this policy did not exist.

11 This policy will be governed by English law.

12 All Acts of Parliament within the policy wording shall include equivalent legislation in Scotland,

Northern Ireland, the Isle of Man or the Channel Islands as the case may be.

DAS is authorised and regulated by the Financial Services Authority.

We provide these services 24 hours a day, seven days a week during the period of insurance. To help us

check and improve our service standards, we record all calls.

We will give the policyholder confidential legal advice over the phone on any commercial legal problem

affecting the business, under the laws of the member countries of the European Union, the Isle of Man,

the Channel Islands, Switzerland and Norway.

We will give the policyholder confidential advice over the phone on any tax matters affecting the business,

under the laws of the United Kingdom.

In the event of an unforeseen emergency affecting the policyholders business premises which causes

damage or potential danger, we will contact a suitable repairer or contractor and arrange assistance on

behalf of the policyholder. All costs of assistance provided are the responsibility of the policyholder.

We will provide all employees (including any members of their immediate family who permanently live

with them) of the policyholder with a confidential counselling service over the phone including, where

appropriate, onward referral to relevant voluntary and/or professional services.

The DAS Employment Manual offers comprehensive, up to date guidance on rapidly changing

employment law. To view it, please visit our website at www.das.co.uk. From the Home Page click on the

Employment Manual icon. All the sections of this web-based document can be printed off for your own

use. Contact us at marketing@das.co.uk with your e mail address, quoting your policy number and we

will contact you by e mail to inform you of future updates to the information.

CLP4/Feb

DAS3159/2004