Employee Misuse Protection

October 31, 2025

Contractual Liability Insurance Policy

This policy is only applicable to customers with a Loop Visa card.

INTEREST: To reimburse the Insured for sums they become legally obligated to waive or pay to their customers for the following benefits:

Corporate Liability Waiver

As more fully described in the policy Wording.

SUM INSURED: Coverage is subject to the following limits:

Corporate Liability Waiver
1. Up to CAD 7,500 per User and in the annual aggregate for companies of 2-4 employees.
2. Up to CAD 25,000 per User and in the annual aggregate for companies with 5 or more employees.

Sub-limit for cash advances of CAD 250 per advance and CAD 1,000 per User per annum.

TERRITORIAL LIMITS: Products to be included on all eligible cards issued by the insured in Canada. Coverage is provided on a worldwide basis.

Definitions

Affidavit of Waiver shall mean a written request or claim form sent from the company requesting the Insured Credit Card Program Manager to waive the Company’s charges in accordance with the terms and conditions of the Program.
Credit Card Program Manager means Loop Payments Inc.
Billed or Unbilled with respect to any Charge shall be based upon the date of the Credit Card Program Manager's statement.
Cardholder shall mean any person authorised by the Company to use the Corporate Credit Cards for Company business only who are either
1. under a contract of/for service or apprenticeship with the Company or
2. undergoing training under any government approved training scheme under the control of the Company in connection with the business
3. Subject always to the Cardholder having reached the age of eighteen.
4. The term Cardholder shall include a director of the Company if such person
  1. is also employed by the Company under a contract of service and
  2. controls no more than 5% of the issued share capital of the Company or of any subsidiary of the Company
Charges shall mean all amounts except cash disbursements, charged to the Company's Corporate Card Account with the Credit Card Program Manage
Company shall mean a corporation, partnership, sole proprietorship, or any other entity which has signed a Corporate Card Account agreement with the Credit Card Program Manager and subsequently issues Corporate Card Accounts for use by designated employees.
Corporate Card Account (Account or Cardholder Account) shall mean an agreement with the Credit Card Program Manager through which designated employees of a Company, Cardholders, are authorized to purchase goods or services for the Company with a Corporate Credit, Debit Prepaid Card or Purchasing Cards.
A Purchasing Card shall mean a card issued to a listed company with representative offices or a client who is running a pilot arrangement to test the card. The card can only be used for travel & entertainment or internet purchases or local purchases of small value items.
Notification of Termination of the Cardholder's employment shall mean the date the Cardholder gives or receives oral or written notice of immediate or pending termination, or the date the Cardholder leaves the Company's service, whichever the earlier.
Termination Date shall mean the date on which:
1. the Cardholder gives notice to the Company
2. the date the Company gives notice to the Cardholder
3. or the date the Authorised Card is withdrawn by the Company from the Cardholder whichever is the sooner
Theft shall mean any act of Fraud or dishonesty by any Cardholder committed in connection with the Authorised Card issued to them with clear intent of obtaining an improper financial gain for themselves or for any other person or organisation intended by the Cardholder to receive such gain
Waivable Charges shall mean all amounts charged to the Company's Business/Corporate/Purchasing account with the Credit Card Program Manager which are not of either direct or indirect benefit to the Company and
1. where the Company has paid the bill but been unable to obtain reimbursement from the Cardholder or
2. where the Credit Card Program Manager has billed the Cardholder direct and the Company has reimbursed the Cardholder but the Cardholder has not paid the Credit Card Program Manager or
3. where the Company has received direct or indirect benefit but is contractually required to pay twice as a result of B) above.
It is understood and agreed that there can be no circumstance where Underwriters can pay a claim twice.
Provided that such unauthorised charges:
1. are billed up to 75 days preceding the Waiver Date and notified by the Company to the Credit Card Program Manager by means of a Waiver Request Letter on or within 14 days of the Waiver Date
  The waiver request letter is a document incorporated within the Guide to this Policy.
2. are incurred but are not yet billed as of the Waiver Date or up to 14 days after the date on which the Credit Card Program Manager received a request to cancel that Cardholders Card whichever occurs first
3. are discovered not later than 75 days after the termination of
  1. this Policy, or
  2. the insurance in respect of the Company employing the Cardholder concerned with the loss
  whichever occurs first.
Waiver date shall mean the discovery date of the loss by the Company
Underwriters shall mean certain Underwriters at Lloyd's of London
Insured means Loop Financial Inc. and Loop Payments Inc. (collectively “Loop”)

The Underwriters will indemnify Loop Payments Inc., and its affiliates in Canada (hereinafter called "the Credit Card Program Manager") and at the request of the Credit Card Program Manager any Company (meaning a corporation partnership sole proprietorship or any other entity with which the Credit Card Program Manager has a signed agreement to issue Corporate Credit Cards) for losses for which the Credit Card Program Manager is entitled to indemnity subject to the terms exceptions and conditions of the Policy as far as they apply

Terms of Cover

The Underwriters will provide indemnity

against loss of Waivable Charges due to the Credit Card Program Manager or for which they are legally responsible caused by any act of Theft committed during the Period of Insurance by any Cardholder
for auditors' fees incurred with the Underwriters consent solely to substantiate the amount of the claim Provided that
1. the Underwriters total liability in respect of any One Claim caused by any one Cardholder shall not exceed the Limit of Indemnity applicable to that Cardholder where One Claim shall mean all acts of Theft within the Period of Insurance committed by one Cardholder or two or more Cardholders acting in collusion (meaning all circumstances where two or more Cardholders are concerned or implicated together or materially assist each other in committing the act of Theft)
2. in the event that One Claim is caused by two or more Cardholders acting in collusion the Underwriters total liability shall not exceed a x b where a = the number of Cardholders involved and b = the Limit of Indemnity applicable to each Cardholder
3. the Underwriters total liability in any one Period of Insurance shall in any case not exceed the aggregate Limit of Indemnity
4. any underlying policy shall be maintained in force and this Policy shall apply only to the extent to which an indemnity for damages and claimants' costs and expenses is not provided under such underlying policy by virtue of any limitation of cover or Limits of Indemnity
5. the Limit of Indemnity under this Policy shall be reduced by an amount equal to the Indemnity provided by any underlying policy
6. the Underwriters may at any time pay the Limit of Indemnity (less any sums already paid) or any lesser amount for which the claims arising out of such an event can be settled the Underwriters will then relinquish control of such claims and be under no further liability in respect thereof except for costs and expenses for which the Underwriters may be responsible in respect of matters prior to the date of such payment

General Conditions

This Policy shall be voidable in the event of deliberate misrepresentation misdescription or non-disclosure in any material particular
Observance of the terms of this Policy relating to anything to be done or complied with by the Credit Card Program Manager is a condition precedent to the Underwriters liability
The Underwriters shall not be liable in the event of any material change in the nature of the business of the Credit Card Program Manager unless the Underwriters have been advised and their written approval obtained.
Either party may cancel this Policy by giving 90 days' notice in writing to the other Party at its last known address. Any such Termination will not affect the rights of the Credit Card Program Manager with respect to charges incurred by its Cardholders prior to the effective date of Termination If the Underwriters give such notice the Credit Card Program Manager shall become entitled to a proportionate return of Premium If the Credit Card Program Manager gives such notice then the Credit Card Program Manager shall be entitled only to a return premium in accordance with the Underwriters usual short period scale provided that no claim has been made in the then current Period of Insurance.
For the purposes of this Policy termination shall mean the date of cancellation of this Policy
If this Policy immediately supersedes a similar insurance affected by the Credit Card Program Manager (hereinafter called the "Superseded Insurance") the Underwriters will indemnify the Credit Card Program Manager in respect of any loss discovered during the continuation of the Superseded Insurance if the loss is not recoverable solely because the period allowed for discovery has expired
Provided that
1. such Insurance has been continually in force from the time of the loss until inception of this Policy
2. the loss would have been insured by this Policy had it been in force at the time of the loss
3. the liability of the Company shall not exceed whichever is the lesser of
  1. the amount recoverable under the insurance in force at the time of the loss or
  2. the Limit of Indemnity applicable under this Policy
In any event the Underwriters total liability in respect of any one Claim continuing through both the terms of the Superseded Insurance and the continuation of this Policy shall not exceed the Limit of Indemnity applicable under this Policy
This Policy shall be voided if
1. the Credit Card Program Manager or Company be wound up or carried on by a liquidator or receiver or permanently discontinued or
2. the Credit Card Program Manager or Company's interest ceases otherwise than by death
This Policy shall be avoided if the Credit Card Program Manager or Company's interest ceases and nothing herein contained shall give any right against the Underwriters to any person other than the Credit Card Program Manager or Company except to a transferee approved by the Underwriters

Claims Conditions

If any claim shall be in any respect fraudulent or if fraudulent means or devices are used by the Credit Card Program Manager or Company or anyone acting on their behalf to obtain any benefit under this Policy or if any loss is occasioned by the wilful act or with the connivance of the Credit Card Program Manager or Company all benefit under this Policy shall be forfeited
Upon knowledge of or discovery of loss or of any occurrence which may give rise to a claim for loss the Credit Card Program Manager or Company whichever is appropriate shall
1. give notice thereof as soon as practicable to Underwriter’s Representative
2. file detailed proof of loss with the Underwriter’s Representative within 120 days after the discovery of the loss
Upon the Underwriters request the Credit Card Program Manager or Company whichever is appropriate shall submit to examination by the Underwriters and produce for the Underwriters examination all pertinent records and all at such reasonable time and place as the Underwriters shall designate and shall cooperate with the Underwriters in all matters pertaining to loss or claims with respect thereto
In the event of any payment under this Policy the Underwriters shall be subrogated to all the Credit Card Program Manager's (or Company's) rights of recovery therefor against any person or organisation and the Credit Card Program Manager (or Company) shall execute and deliver instruments to secure such rights The Credit Card Program Manager (or Company) shall do nothing after loss to prejudice such rights
If at any time any claim arises under this Policy there be any other insurance or indemnity or guarantee covering the same loss the Underwriters shall not be liable except in respect of an excess of the amount which is payable under such other insurance or indemnity or guarantee
If any difference shall arise as to the amount to be paid under this Policy, such difference shall be referred to arbitration, which shall be carried on in English and, depending on the jurisdiction, in accordance with the rules as set out In the Arbitration Clause in the contract between Loop, and Underwriters.
The insurance provided under this Policy shall not apply in respect of any loss caused by a Cardholder if the Company possesses knowledge of any act or acts of fraud or dishonesty committed by such Cardholder
1. In the service of the Company or otherwise during the terms of employment by the Company
2. prior to employment by the Company
For the purposes of this Policy knowledge possessed by the Company means knowledge possessed by a partner director elected or appointed officer who is aware of the employment of a person and that persons acts of fraud or dishonesty
For a valid claim to arise it is a condition of this Policy that the Company shall as soon as any act of Theft is discovered make every effort to retrieve the Corporate Credit Card from the Cardholder and destroy the Corporate Credit Card
Immediately following the discovery by the Company of any act of Theft by a Cardholder it shall be the duty of the Company to inform the Credit Card Program Manager immediately and to have the Card placed upon the suspended card list the Underwriters shall bear no liability for future acts of Theft by the Cardholder following the said discovery of fraudulent activity
Any money of the Cardholder in the Company's hands upon discovery of any loss and money which but for the Cardholders Theft would have been due to the Cardholder from the Company shall be deducted from the amount of the loss before a claim is made under this Policy. Any further monies which are recovered less any costs incurred in recovery shall accrue
1. in the event that the Company's claim has exceeded the Limit of Indemnity firstly to the benefit of the Company to reduce or extinguish the amount of the Company's loss
2. thereafter to the Underwriters benefit to the extent of the claim paid or payable
3. and finally any surplus thereafter shall be returned to the Company
Claim details
In the event of a claim or any circumstances giving rise to the possibility of a claim the Insured must immediately notify Baird MacGregor Insurance Brokers.

Exclusions

The Underwriters shall not be liable for

loss of interest or consequential loss of any kind
loss caused by any act of any Cardholder committed prior to the commencement date for that Cardholder
charges incurred to Purchasing goods or services for the Company or for persons other than the Cardholder pursuant to the instructions of the Company or acquiescence thereto by the Company if those goods or services are of the type which are regularly purchased by or for the Company
charges incurred by a Cardholder after the discovery date of the loss by the Company or charges incurred beyond 14 days after the Credit Card Program Manager receives a request to cancel the Cardholder's Business/Corporate/Purchasing Card whichever is the earlier
cash advances, after Notification of Termination Date
cash advances which exceed CAD 250 per day or a maximum of CAD 1,000 in all prior to notification of Termination

Minimum Standards of Control

Obligations of the Company

The Company may require the Credit Card Program Manager to waive their liability for Waivable Charges only if they meet all the following requirements:

The Company has two (2) or more Cards in good standing on or after establishing a Card account with the Credit Card Program Manager. This requirement maybe waived for Purchasing cards only.
The Company send a "Waiver Request" by letter or fax to the Credit Card Program Manager. The Waiver Request must state:
1. That the Company request the waiver of covered Charges.
2. The Cardholder's name, Card number and last known business and home address.
3. In cases where the Credit Card Program Manager invoices the Cardholder directly, that the Company has contacted the Cardholder in writing and directed him to immediately pay all outstanding Charges to the Credit Card Program Manager; and
4. Whether the Card was retrieved from the Cardholder.
The Company has delivered to the Cardholder or sent by first class mail a written notice stating that the Cardholder's Card has been cancelled, that he should immediately discontinue all use of that Card, that he must immediately pay any outstanding amounts owed to the Credit Card Program Manager, and that he must immediately return that Card to the Company.
The Company has used and will continue to use its best endeavors to retrieve the Card from the Cardholder and to return it, cut in half, to the Credit Card Program Manager.
The Company shall promptly give written notice to the Credit Card Program Manager if any Cardholder's employment has been terminated or in cases where the Credit Card Program Manager invoices the Cardholder, if the Company knows or should know that a Cardholder is receiving reimbursement for Charges but is not paying the Credit Card Program Manager for those Charges.

Complaints Procedure

Customer Complaints Resolution for Employee Misuse Policy only

Purpose

The purpose of this policy is to establish a clear and efficient process for resolving customer complaints relating to the Employee Misuse Policy above. Our goal is to ensure that all customer concerns are addressed promptly, fairly, and with respect, ultimately leading to a best in class customer satisfaction and service quality that align with Loop Payments Inc’s and its affitiliate’s (also known as Loop) mission, vision and values.

Scope

The Customer Complaints Resolution Policy applies to all customer complaints regarding our products, services, or interactions with company representatives in relation to the Employee Misuse Policy.

Annual Review

This Code of Conduct shall be reviewed as often as necessary and no less than annually.

Principles

Accessibility: Customers can easily access the complaints process through multiple channels.
Fairness: All complaints will be handled impartially, ensuring a fair outcome for the customer.
Confidentiality: Customer privacy will be respected, and details of the complaint will be kept confidential.
Timeliness: We commit to resolving complaints within a reasonable timeframe.
Transparency: Customers will be kept informed of the progress and outcome of their complaints at each stage.

How to Submit a Complaint

Customers can submit their complaints through the following channels:

Email: By sending a detailed complaint to support@bankonloop.com or their dedicated Account Manager.
Chatbot: Log into your Loop dashboard and submit a complaint through the prompt in our Chatbot.

Information to Provide

To help us resolve the complaint efficiently, customers should provide:

Full name and contact information
A detailed description of the issue
If related to a transaction, the date, amount and transaction details
Any relevant dates, or supporting documents

Complaint Handling Process

Assessment. Each complaint will be assessed to determine its nature, urgency, and the appropriate resolution approach.

Investigation. If required, an investigation will be conducted. This may involve reviewing customer accounts, speaking with relevant stakeholders, both internal to Loop and external, and analyzing any provided documentation.

Resolution. Once the investigation is complete, we will offer a resolution. This could involve a refund, apology, or other forms of redress. The customer will be informed of the outcome in writing.

Escalation. If the customer is not satisfied with the proposed resolution, they may request that the complaint be escalated to the Head of Credit Product or Chief Executive Officer for further review.

Continuous Improvement

The Operations team will regularly monitor and analyze customer complaints to identify common issues and areas for improvement in our products and services.

This policy will be reviewed annually to ensure it remains effective and aligns with industry best practices and customer expectations.

Roles and Responsibilities

Customer Service Representative: Responsible for receiving and responding to complaints, and for escalating them when necessary.
Head of Operations: Responsible for overseeing the resolution of escalated complaints and ensuring customer satisfaction.
Head of Credit Products: Oversees the complaints process, ensuring timely and fair resolution of all customer concerns.

Record Keeping

All complaints and their resolutions will be documented and securely stored through our CRM, Salesforce, in accordance with our Privacy Policy and Card Holder Agreement, available at https://www.bankonloop.com/legal. These records will only be accessible to those directly involved in the resolution process, internal to Loop unless otherwise required pursuant to applicable law.

Policy Amendments

We reserve the right to amend this policy at any time. Any changes will be communicated to customers through our website and other appropriate channels.

Claims Notification Procedures

In the event of a claim, the Financial Institution or Company is to contact Jesse Henkenhaf at Baird MacGregor Insurance Brokers as Underwriter’s Representative quoting the reference number: B1179I795225000 and having available the covered corporate card with a valid BIN number.
Once Underwriter’s Representative has established that the claim is in respect of a covered card, the Underwriter’s Representative will send out a claim form that is to be completed by the Financial Institution or Company and returned with the supporting documentation in order to substantiate the claim.
Underwriter’s Representative in conjunction with the Insurers' will then adjust the claim and Underwriter’s Representative will subsequently advise the Financial Institution or Company of the amount of charges that the Insurers' have agreed to reimburse.

Baird MacGregor Insurance Brokers
Telephone: +1-416-778-8000
Fax: +1-416-778-4492
Email: claimssupport@bairdmacgregor.com