FORM COMMERCIAL EXCESS AND UMBRELLA LIABILITY POLICY PLUS CATASTROPHE MANAGEMENT AND KEY EXECUTIVE PERSONAL LIABILITY

Transcription

1 SM ACE AB UMBRELLA PLUS FORM COMMERCIAL EXCESS AND UMBRELLA LIABILITY POLICY PLUS CATASTROPHE MANAGEMENT AND KEY EXECUTIVE PERSONAL LIABILITY CONTENTS Section Page Number Insuring Agreements 1 - Coverage A Follow Form Excess 1 - Coverage B Commercial Umbrella 2 - Coverage C Catastrophe Management 2 - Coverage D Key Executive Personal Liability 3 Who Is An Insured 4 Defense and Supplementary Payments 6 Limits of Insurance 7 Exclusions Applicable to All Coverages 9 - Coverage A Follow Form Excess 11 - Coverage B Umbrella Liability 12 - Coverage D Key Executive Personal Liability 16 Conditions 18 Definitions 21

2 ACE AB UMBRELLA Plus SM Form Commercial Excess and Umbrella Liability Policy Plus Catastrophe Management and Key Executive Personal Liability This insurance policy consists of four coverage parts: A. FOLLOW FORM EXCESS LIABILITY INSURANCE EXCESS OF SCHEDULED UNDERLYING INSURANCE B. COMMERCIAL UMBRELLA LIABILITY INSURANCE EXCESS OF SELF-INSURED RETENTION WITH NO UNDERLYING INSURANCE C. CATASTROPHE MANAGEMENT INSURANCE D. KEY EXECUTIVE PERSONAL LIABILITY INSURANCE Various provisions in this policy restrict coverage. Please read the entire policy carefully to determine rights, duties and what is and is not covered. Throughout this policy the words you and your refer to the Named Insured shown in the Declarations, and any other person or organization qualifying as a Named Insured under this policy. The words we, us and our refer to the company providing this insurance. Other words and phrases that appear in quotation marks have special meaning and are defined in the Definitions section of this policy. Some terms and conditions apply to all four coverage parts and are so identified; other terms and conditions apply only to a distinct coverage part and are so identified. We, the Company named in the Declarations, relying upon the statements shown on the Declarations page and in the Schedule of Underlying Insurance attached to the policy, and in return for the payment of premium and subject to its terms, conditions, and limits of insurance of this policy, agree with you as follows: I. INSURING AGREEMENTS Coverage A - Follow Form Excess Liability Insurance Excess of Scheduled Underlying Insurance 1. Subject to all of the terms and conditions applicable to Coverage A Follow Form Excess, we will pay on behalf of the insured those sums to which this coverage part applies, and which exceeds the applicable underlying limits of underlying insurance described in the Schedule of Underlying Insurance. 2. This coverage part applies only if the injury or damage: a. Is covered by underlying insurance ; and b. Occurs during the policy period of this policy. 3. This coverage part will follow the terms and conditions of underlying insurance described in the Schedule of Underlying Insurance, unless a term or condition applicable to this coverage part: a. Differs from any term or condition contained in the applicable underlying insurance ; or b. Is not contained in the applicable underlying insurance. With respect to such exceptions described in a. and b. above, the insurance coverage provided by this coverage part will not be broader than the insurance coverage provided by the underlying insurance ; and any exclusions, restrictions or limiting terms and conditions applicable to this coverage part will supersede any broader coverage, terms and conditions XAB (11/14) 2014 Page 1 of 27

3 provided by the applicable underlying insurance. Insuring Agreement Coverage A - Continued 4. This coverage part does not apply to any part of loss within underlying limits, or any related costs or expenses. 5. We have no obligation under this coverage part with respect to any claim or suit settled without our consent. 6. Other than as provided under the Defense and Supplementary Payments section of this policy, we have no other obligation or liability to pay sums or perform acts or services under this coverage part. Coverage B Commercial Umbrella Liability Insurance Excess of Self-Insured Retention with No Underlying Insurance 1. Subject to all of the terms and conditions applicable to Coverage B Umbrella Liability, we will pay, on behalf of the insured, those sums that the insured becomes legally liable to pay arising out of bodily injury, property damage, personal and advertising injury caused by an occurrence to which this coverage part applies. We will pay loss only in excess of the Umbrella Liability Self-Insured Retention shown in the Declarations or the amounts payable by other insurance, whichever is greater. 2. This coverage part applies only to such: a. Bodily injury or property damage that occurs during the policy period and within the coverage territory ; or b. Personal and advertising injury caused by an offense that is committed during the policy period and within the coverage territory. 3. Damages for bodily injury include damages claimed by a person or organization for care or loss of services resulting at any time from the bodily injury. 4. This coverage part does not apply to any part of: a. Loss to which underlying insurance would apply, regardless of whether or not: i. Underlying insurance is available; and ii. The applicable underlying limits have been exhausted; b. Loss to which underlying limits apply; c. Loss within the Umbrella Liability Self-Insured Retention shown in the Declarations; d. Loss covered by any other coverage part under this policy; or e. Any costs or expenses related to loss as described in paragraphs a., b., c. or d. above. 5. We have no obligation under this coverage part with respect to any claim or suit settled without our consent. 6. Other than as provided under the Defense and Supplementary Payments section of this policy, we have no other obligation or liability to pay sums or perform acts or services under this coverage part. Coverage C - Catastrophe Management Insurance 1. Subject to all of the terms and conditions applicable to Coverage C Catastrophe Management, we will pay to third parties, on behalf of and at the request of the insured, catastrophe management costs arising out of injury or damage that, in the good faith opinion of a key executive, has resulted in or is reasonably likely to result in: a. Damages covered by Coverage A Follow Form Excess or Coverage B - Umbrella Liability in excess of the greater of: i. Applicable underlying limits ; ii. Other insurance ; or XAB (11/14) 2014 Page 2 of 27

4 Insuring Agreement Coverage C - Continued iii. The Umbrella Liability Self-Insured Retention shown in the Declarations; and b. A need for catastrophe management services due to adverse media coverage. 2. This coverage part applies only to catastrophe management costs arising out of a covered injury or damage that occurs and is reported to us during the policy period. 3. Our obligation to pay catastrophe management costs will end when we determine: a. That the injury or damage is not reasonably likely to result in damages covered by Coverage A Follow Form Excess or Coverage B - Umbrella Liability in excess of the greater of: i. Applicable underlying limits ; ii. Other insurance ; or iii. The Umbrella Liability Self-Insured Retention shown in the Declarations; or b. That there is no longer a need for catastrophe management services due to adverse media coverage. 4. Any payment of catastrophe management costs that we make will not: a. Be a determination of any other rights or obligations under this policy; b. Create any duty to defend any suit under any other part of this policy; or c. Operate as a waiver of any right or defense we have with respect to the coverage under this policy, including the Condition titled Duties in the Event of Occurrence, Claim or Suit. 5. We have no obligation under this coverage part with respect to any catastrophe management costs incurred or paid without our consent. 6. We have no other obligation or liability to pay sums or perform acts or services under this coverage part. Coverage D Key Executive Personal Liability Insurance 1. Subject to all of the terms and conditions applicable to Coverage D Key Executive Personal Liability, we will pay, on behalf of an individual insured, loss that such insured becomes legally obligated to pay arising out of bodily injury caused by an occurrence to which this coverage part applies. We will pay such loss only in excess of the Personal Liability Self- Insured Retention shown in the Declarations or the amount payable by other insurance, whichever is greater. 2. This coverage part applies only to such bodily injury that a. Occurs during the policy period and within the coverage territory ; and b. Arises out of an insured s : i. Ownership for personal use of a residential property ; or ii. Operation of an auto. 3. This coverage part does not apply to any part of: a. Loss to which any underlying insurance would apply, regardless of whether or not: i. Underlying insurance is available; and ii. The applicable underlying limits have been exhausted; b. Loss to which underlying limits apply; c. Loss within the Personal Liability Self-Insured Retention shown in the Declarations; d. Loss covered by any other coverage part under this policy; or e. Any costs or expenses related to loss as described in paragraphs a., b., c. or d. above. XAB (11/14) 2014 Page 3 of 27

5 Insuring Agreement Coverage D - Continued 4. We have no obligation under this coverage part with respect to any claim or suit settled without our consent. 5. Other than as provided under the Defense and Supplementary Payments section of this policy, we have no other obligation or liability to pay sums or perform acts or services under this coverage part. II. WHO IS AN INSURED Coverage A - Follow Form Excess With respect to Coverage A Follow Form Excess, the following persons and organizations qualify as insureds : 1. The Named Insured named in Item 1 of the Declarations and other persons or organizations included in the definition of Named Insured are insureds ; 2. Other persons or organizations qualifying as an insured in underlying insurance. Coverage B Umbrella Liability & Coverage C Catastrophe Management 1. With respect to Coverage B Umbrella Liability and Coverage C Catastrophe Management, the following persons and organizations qualify as insureds : a. The Named Insured named in Item 1 of the Declarations and other persons or organizations included in the definition of Named Insured are insureds. b. If you are designated in the Declarations as: i. An individual, you and your spouse are insureds, but only with respect to the conduct of a business of which you are the sole owner. ii. iii. iv. A partnership or joint venture, you are an insured. Your members, your partners, and their spouses are also insureds, but only with respect to the conduct of your business. A limited liability company, you are an insured. Your members are also insureds, but only with respect to the conduct of your business. Your managers are insureds, but only with respect to their duties as your managers. An organization other than a partnership, joint venture or limited liability company, you are an insured. Your executive officers and directors are insureds, but only with respect to their duties as your officers or directors. Your stockholders are also insureds, but only with respect to their liability as stockholders. v. A trust, you are an insured. Your trustees are also insureds, but only with respect to their duties as trustees. 2. Each of the following is also an insured : a. Your volunteer workers, but only while performing duties related to the conduct of your business, or your employees, other than either your executive officers (if you are an organization other than a partnership, joint venture or limited liability company) or your managers (if you are a limited liability company), but only for acts within the scope of their employment by you or while performing duties related to the conduct of your business. However, none of these employees or volunteer workers are insureds for: i. Bodily injury or personal and advertising injury : a) To you, to your partners or members (if you are a partnership or joint venture), to your members (if you are a limited liability company), to a co- employee while in the course of his or her employment or performing duties related to the conduct of your business, or to your other volunteer workers while performing duties related to the conduct of your business; b) To the spouse, child, parent, brother or sister of that co- employee or volunteer worker as a consequence of Paragraph i.a. above; or XAB (11/14) 2014 Page 4 of 27

6 ii. Who Is An Insured Coverages B & C Continued c) For which there is any obligation to share damages with or repay someone else who must pay damages because of the injury described in Paragraphs i.a. or b. above. Property damage to property: a) Owned, occupied or used by you, b) Rented to, in the care, custody or control of, or over which physical control is being exercised for any purpose by you, any of your employees, volunteer workers, any partner or member (if you are a partnership or joint venture), or any member (if you are a limited liability company). b. Any person (other than your employee or volunteer workers ), or any organization while acting as your real estate manager. c. Any person or organization having proper temporary custody of your property if you die, but only: i. With respect to liability arising out of the maintenance or use of that property; and ii. Until your legal representative has been appointed. d. Your legal representative if you die, but only with respect to duties as such. That representative will have all your rights and duties under this policy. e. Any person or organization, if insured under underlying insurance. Notwithstanding anything above: 1. No person or organization is an insured with respect to the conduct of any current or past partnership, joint venture or limited liability company of which the person or organization is a partner or member unless the partnership, joint venture or limited liability company is shown as a Named Insured ; 2. No person or organization is an insured arising out of his or her providing or failing to provide professional health care services; and 3. No person or organization is an insured that is not also an insured under applicable underlying Insurance. Coverage D - Key Executive Personal Liability Insurance 1. With respect to Coverage D - Key Executive Personal Liability, the following persons qualify as insureds : a. Key Executives of the Named Insured shown in the Declarations are insureds. b. Spouses of key executives of the Named Insured shown in the declarations are insureds, but only if they are residents of the key executive s household. 2. No person is an insured with respect to bodily injury that occurred, in whole or in part, before they were employed as a key executive of the Named Insured or after they ceased being a key executive of the Named Insured. With respect to all coverage parts under this policy: No organization you acquire or form is an insured with respect to: 1. Catastrophe management costs incurred or paid; 2. Injury or damage that occurred; or 3. Injury or damage arising out of an offense first committed; before you acquired or formed such organization. XAB (11/14) 2014 Page 5 of 27

7 III. DEFENSE AND SUPPLEMENTARY PAYMENTS Defense 1. Coverage A Follow Form Excess Subject to all of the terms and conditions applicable to Coverage A Follow Form Excess, we will have the right and duty to defend the insured against a suit to which this coverage part applies, if the applicable underlying limits and the total applicable limits of any other insurance have been exhausted by payment of judgments, settlements or related costs or expenses. 2. Coverage B Umbrella Liability Subject to the terms and conditions applicable to Coverage B Umbrella Liability, we will have the right and duty to defend the insured against a suit to which this coverage part applies, even if such suit is groundless, false or fraudulent, if the Umbrella Liability Self- Insured Retention shown in the Declarations has been exhausted by payment of loss covered by Coverage B Umbrella Liability. 3. Coverage D Key Executive Personal Liability Subject to the terms and conditions applicable to Coverage D Key Executive Personal Liability, we will have the right and duty to defend the insured against a suit to which this coverage part applies, even if such suit is groundless, false or fraudulent, if the Personal Liability Self-Insured Retention shown in the Declarations has been exhausted by payment of loss covered by Coverage D Key Executive Personal Liability. 4. We have no duty to defend any person or organization against any claim or suit : a. For damages payable under Coverage C Catastrophe Management; b. To which this insurance does not apply; or c. If any other insurer has a duty to defend. 5. We will have the right but not the duty to participate in the investigation, defense and settlement of any occurrence, offense, claim or suit which may, in our opinion, result in damages to which this insurance applies. 6. Our duty to defend any person or organization ends when the applicable Limit of Insurance of this policy has been exhausted by payment of loss. Supplementary Payments 1. If we assume the defense of any suit against the insured, we will pay in addition to the applicable Limit of Insurance: a. All expenses we incur. b. The cost of bail bonds or bonds required to appeal judgments or release attachments, but only for bond amounts within the applicable Limit of Insurance. We do not have to furnish these bonds. c. All reasonable expenses, including actual loss of earnings because of time off from work, incurred by the insured at our request to assist us in the investigation of any claim or the defense of any suit covered under this policy. d. All costs taxed against the insured in the suit. e. Pre-judgment interest awarded against the insured on that part of the judgment, within the applicable Limit of Insurance, that we pay. If we make an offer to pay the applicable Limit of Insurance, we will not pay any prejudgment interest accruing after the offer. XAB (11/14) 2014 Page 6 of 27

8 Supplementary Payments - Continued f. Post-judgment interest on that part of any judgment that we become obligated to pay, which accrues after entry of the judgment and before we have paid, offered to pay or deposited in court the part of the judgment that we have become obligated to pay, which is within the applicable Limit of Insurance. 2. Supplementary Payments does not include any fine or other penalty. 3. Supplementary Payments does not include any catastrophe management costs. 4. Our obligation to make these payments ends when the applicable Limit of Insurance of this policy has been exhausted by the payment of loss. Defense Costs and Expenses 1. Subject to 2. below, expenses incurred to defend any suit or to investigate any claim will be in addition to applicable Limits of Insurance of this policy. 2. With respect to Coverage A Follow Form Excess and Coverage B Umbrella Liability, if expenses incurred to defend any suit or to investigate any claim reduce the applicable underlying limits of underlying insurance, or any other insurance applicable to these coverage parts, then such expenses will reduce the corresponding applicable Limits of Insurance of this policy. IV. LIMITS OF INSURANCE With respect to all coverage parts under this policy, the Limits of Insurance shown in the Declarations and the rules below fix the most we will pay regardless of the number of: 1. Insureds ; 2. Claims made or suits brought; 3. Persons or organizations making claims or bringing suits ; or 4. Coverage parts provided in this policy. Each Occurrence Limit 1. The Each Occurrence Limit is the most we will pay for the sum of loss and catastrophe management costs arising out of any one occurrence, even if such loss or catastrophe management costs are or otherwise would be covered in whole or in part under more than one coverage part. 2. Any amount paid for loss will reduce the amount of the applicable aggregate limit available for any other payment. 3. If the applicable aggregate limit has been reduced to an amount that is less than the Each Occurrence Limit, the remaining amount of such aggregate limit is the most that will be available for any other payment. Products-Completed Operations Aggregate Limit Subject to the Each Occurrence Limit, the Products-Completed Operations Aggregate Limit is the most we will pay for the sum of loss included in the products-completed operations hazard, even if such loss is or otherwise would be covered in whole or in part under more than one coverage part. Coverage A - Follow Form Excess Aggregate Limit 1. Subject to the Each Occurrence Limit, the Coverage A Follow Form Excess Aggregate Limit is the most we will pay for the sum of loss under Coverage A Follow Form Excess, except loss : a. Included in the products-completed operations hazard ; or XAB (11/14) 2014 Page 7 of 27

9 Limits of Insurance Coverage A - Continued b. Otherwise covered by underlying insurance, but to which no aggregate limit in such underlying insurance applies. 2. The Coverage A Follow Form Excess Aggregate Limit will apply separately to loss in the same manner as each aggregate limit so applies in each underlying insurance. 3. If the applicable aggregate of underlying insurance applies on a per location basis but that per location aggregate is limited by a separate maximum aggregate, then the Coverage A Follow Form Excess Aggregate Limit in this policy will also apply on a per location basis, but shall also be subject to and limited by a separate maximum aggregate. The amount of the separate maximum aggregate applicable to Coverage A Follow Form Excess - will be an amount that is in the same proportion to the Coverage A Follow Form Excess Aggregate Limit shown in the Declarations as the per location aggregate and the separate maximum aggregate limits of the underlying insurance are to each other. Coverage B Umbrella Liability Aggregate Limit Subject to the Each Occurrence Limit, the Coverage B Umbrella Liability Aggregate is the most we will pay for the sum of loss under Coverage B Umbrella Liability, except loss included in the products-completed operations hazard. Coverage C Catastrophe Management Aggregate Limit Subject to the Each Occurrence Limit, the Coverage C Catastrophe Management Aggregate is the most we will pay for the sum of all catastrophe management costs under Coverage C Catastrophe Management Coverage D - Key Executive Personal Liability Aggregate Limit Subject to the Each Occurrence Limit, the Coverage D - Key Executive Personal Liability Aggregate Limit is the most we will pay for the sum of loss under Coverage D - Key Executive Personal Liability. Policy Period 1. The Limits of Insurance of this policy apply separately to each consecutive annual period and to any remaining period of less than 12 months (starting with the beginning of the policy period shown in the Declarations), provided the applicable limits in underlying insurance apply in such manner. If the limits in underlying insurance do not so apply, the applicable Limits of Insurance of this policy will apply to the entire policy period and not separately to any portion (whether annual or otherwise) thereof. 2. If the policy period is extended after issuance, the additional period will be deemed part of the last preceding period for purposes of determining the Limits of Insurance. Drop Down Coverage A 1. Subject to all the terms and conditions of this policy, with respect to Coverage A Follow Form Excess, if the applicable underlying limits are: a. Reduced by the payment of judgments, settlements or related costs or expenses (if such costs or expenses reduce such limits), Coverage A Follow Form Excess will drop down to apply in excess of the remaining amount of the applicable underlying limits ; or b. Exhausted by payment of judgments, settlements or related costs or expenses (if such costs or expenses reduce such limits), Coverage A Follow Form Excess will continue in force in the same manner as the applicable underlying insurance would have applied but for such exhaustion. 2. Subject to all the terms and conditions of this insurance, with respect to Coverage A Follow Form Excess, if amounts available under the applicable underlying insurance are: a. Greater than the amount shown as underlying limits in the Schedule of Underlying Insurance, Coverage A Follow Form Excess will apply in excess of the greater amount of valid and collectible insurance; or XAB (11/14) 2014 Page 8 of 27

10 Limits of Insurance Drop Down - Coverage A - Continued b. Less than the amount shown as underlying limits in the Schedule of Underlying Insurance, Coverage A Follow Form Excess will apply in excess of the amount shown as underlying limits. V. EXCLUSIONS Exclusions - All Coverages With respect to all coverage parts under this policy, this insurance does not apply to: Asbestos Any liability, injury, damage, expense, loss, cost or legal obligation arising out of or related in any way to asbestos or asbestos-containing materials. Employment Practices 1. Any liability, injury, damage, expense, loss, cost or legal obligation arising out of any employment-related act, omission, policy, practice or representation directed at any person, occurring at any time, including any: a. Arrest, detention or imprisonment; b. Breach of any express or implied covenant; c. Coercion, criticism, humiliation, prosecution or retaliation; d. Libel, slander, defamation or disparagement; e. Demotion, discipline, evaluation or reassignment; f. Discrimination, harassment or segregation; g. Eviction, invasion or other violation of any right of occupancy; h. Failure or refusal to advance, compensate, employ or promote; i. Invasion or other violation of any right of privacy or publicity; j. Termination of employment; or k. Violation of civil rights. This exclusion applies whether or not the insured may be liable as an employer or in any other capacity, and to any obligation to share damages with or repay someone else who must pay damages because of any of the foregoing. 2. This insurance does not apply to any liability or loss, cost or expense in connection with any damages sustained at any time by the brother, child, parent, sister or spouse of such person at whom any employment-related act, omission, policy, practice or representation is directed, as described in paragraph a. above, as a consequence thereof. Loss in Progress 1. Any liability, loss, cost, expense, demand, claim or suit arising out of injury or damage that is a change, continuation or resumption of any injury or damage known by you, prior to the beginning of the policy period to have occurred. 2. Injury or damage will be deemed to be known by you at the earliest time when any insured or employee authorized by you to give or receive notice of an occurrence or claim: a. Reports all, or any part, of the injury or damage to us or any other insurer; b. Receives a written or verbal demand or claim for damages because of injury or damage; or c. Becomes aware by any other means that injury or damage has occurred or begun to occur. XAB (11/14) 2014 Page 9 of 27

11 Miscellaneous Laws Any liability, injury, damage, expense, loss, cost or legal obligation under: Exclusions All Coverages - Continued 1. The Employee Retirement Income Security Act of 1974 (ERISA) or any similar law, as now constituted or hereafter amended. 2. Any medical expenses or payments coverage. 3. Any no-fault, uninsured or underinsured motorist law or any similar law. 4. Any personal injury protection coverage. 5. Any workers compensation, disability benefits or unemployment compensation law or similar law. Nuclear 1. Any injury or damage: a. With respect to which an insured under the policy is also an insured under a nuclear energy liability policy issued by Nuclear Energy Liability Insurance Association, Mutual Atomic Energy Liability Underwriters, Nuclear Insurance Association of Canada or any of their successors, or would be an insured under any such policy but for its termination upon exhaustion of its limit of insurance; or b. Resulting from the hazardous properties of nuclear material and with respect to which (1) any person or organization is required to maintain financial protection pursuant to the Atomic Energy Act of 1954, or any law amendatory thereof, or (2) the insured is, or had this policy not been issued would be, entitled to indemnity from the United States of America, or any agency thereof, under any agreement entered into by the United States of America, or any agency thereof, with any person or organization. 2. Any injury or damage resulting from the hazardous properties of nuclear material, if: a. The nuclear material (1) is at any nuclear facility owned by, or operated by or on behalf of, an insured or (2) has been discharged or dispersed therefrom; b. The nuclear material is contained in spent fuel or waste at any time possessed, handled, used, processed, stored, transported or disposed of by or on behalf of an insured ; or c. The injury or damage arises out of the furnishing by an insured of services, materials, parts or equipment in connection with the planning, construction, maintenance, operations or use of any nuclear facility. As used in this exclusion: 1. Hazardous properties include radioactive, toxic or explosive properties; 2. Nuclear material means source material, special nuclear material or by-product material ; 3. Source material, special nuclear material, and by-product material have the meanings given them in the Atomic Energy act of 1954 or in any law amendatory thereof; 4. Spent fuel means any fuel element or fuel component, solid or liquid, which has been used or exposed to radiation in a nuclear reactor ; 5. Waste means any waste material (a) containing by-product material other than the tailings or waste produced by the extraction or concentration of uranium or thorium from any ore processed primarily for its source material content, and (b) resulting from the operation by any person or organization of any nuclear facility included under the first two paragraphs of the definition of nuclear facility. 6. Nuclear facility means: a. Any nuclear reactor ; XAB (11/14) 2014 Page 10 of 27

12 Exclusions All Coverages - Nuclear - Continued b. Any equipment or device designed or used for (1) separating the isotopes of uranium or plutonium; (2) processing or utilizing spent fuel ; or (3) handling, processing or packaging waste ; c. Any equipment or device used for the processing, fabricating or alloying of special nuclear material if at any time the total amount of such material in the custody of the insured at the premises where such equipment or device is located consists of or contains more than 25 grams of plutonium or uranium 233 or any combination thereof, or more than 250 grams of uranium 235; d. Any structure, basin, excavation, premises or place prepared or used for the storage or disposal of waste and includes the site on which any of the foregoing is located, all operations conducted on such site and all premises used for such operations. 7. Nuclear reactor means any apparatus designed or used to sustain nuclear fission in a selfsupporting chain reaction or to contain a critical mass of fissionable material. 8. Injury or damage includes all forms of radioactive contamination of property. Trade or Economic Sanctions To the extent that trade or economic sanctions or other laws or regulations prohibit us from providing insurance, including, but not limited to, the payment of claims or defense. Unauthorized Use of Another s Name or Product Personal or Advertising Injury arising out of the unauthorized use of another s name or product in your address, domain name or metatag, or any other similar tactics to mislead another s potential customers. Unsolicited Communications Any liability, injury, damage, expense, loss, cost or legal obligation arising out of or related in any way to any form of communication, including but not limited to facsimile, electronic mail, posted mail or telephone that violates or is alleged to violate:` 1. The Telephone Consumer Protection Act (TCPA), including any amendment of or addition to such law; 2. The CAN-SPAM Act of 2003, including any amendment of or addition to such law; 3. The Fair Credit Reporting Act (FCRA), and any amendment of or addition to such law, including the Fair and Accurate Credit Transaction Act (FACTA); or 4. Any federal, state, or local statute, ordinance or regulation, other than the TCPA, CAN-SPAM Act of 2003, FCRA and their amendments and additions, that addresses, prohibits, or limits the printing, dissemination, disposal, collecting, recording, sending, transmitting, communicating or distribution of material or information. War Any liability, injury, damage, expense, loss, cost or legal obligation, however caused, arising, directly or indirectly, as a result of or in connection with war, whether declared or not, or any act or condition incident to war. War includes civil war, insurrection, rebellion or revolution. Exclusions - Coverage A - Follow Form Excess With respect to Coverage A - Follow Form Excess, this insurance does not apply to: Obligations of Underlying Insurance Any liability, injury, damage, expense, loss, cost or legal obligation for which the liability or obligation under underlying insurance is by law unlimited. Underlying Insurance Exclusions Any liability, injury, damage, expense, loss, cost or legal obligation to which the terms and conditions of underlying insurance do not apply. XAB (11/14) 2014 Page 11 of 27

13 Exclusions - Coverage B Umbrella Liability With respect to Coverage B Umbrella Liability, this insurance does not apply to: Aircraft 1. Bodily injury or property damage arising out of the ownership, maintenance, use (use includes operation, loading or unloading ) or entrustment to others of any aircraft owned or operated by or rented or loaned to any insured. 2. This exclusion applies even if claims against any insured allege negligence or other wrongdoing in the supervision, hiring, employment, training or monitoring of others by any insured. 3. This exclusion does not apply to an aircraft that is: Autos a. Loaned or rented to you with a paid, trained crew; and b. Not owned, in whole or in part, by any insured. 1. Bodily injury or property damage arising out of the ownership, maintenance, use (use includes operation, loading or unloading ) or entrustment to others of any auto owned or operated by or loaned or rented to any insured. 2. This exclusion does not apply to an occurrence that takes place outside of the United States of America (including its possessions or territories), Canada and Puerto Rico. 3. This exclusion applies even if claims against any insured allege negligence or other wrongdoing in the supervision, hiring, employment, training or monitoring of others by any insured. Contractual Liability Bodily injury, property damage, personal and advertising injury for which the insured is obligated to pay damages by reason of the assumption of liability in a contract or agreement. This exclusion does not apply to liability for damages: 1. That the insured would have in the absence of the contract or agreement; or 2. Assumed in a contract or agreement that is an insured contract, provided the injury or damage occurs, or is caused by an offense that is first committed, subsequent to the execution of the contract or agreement. Solely for the purposes of liability assumed in an insured contract, reasonable attorney fees and necessary litigation expenses incurred by or for a party other than an insured are deemed to be damages because of bodily injury, property damage, advertising injury or personal injury, provided: a. Liability to such party for, or for the cost of, that party's defense has also been assumed in the same insured contract ; and b. Such attorney fees and litigation expenses are for defense of that party against a civil or alternative dispute resolution proceeding in which damages to which this insurance applies are alleged. Damage to Impaired Property or Property Not Physically Injured Property damage to impaired property or property that has not been physically injured, arising out of: 1. A defect, deficiency, inadequacy or dangerous condition in your product or your work ; or 2. A delay or failure by you or anyone acting on your behalf to perform a contract or agreement in accordance with its terms. This exclusion does not apply to the loss of use of other property arising out of sudden and accidental physical injury to your product or your work after it has been put to its intended use. XAB (11/14) 2014 Page 12 of 27

14 Damage to Property Property damage to: Exclusions Coverage B Continued 1. Property you own, rent, or occupy, including any costs or expenses incurred by you, or any other person, organization or entity, for repair, replacement, enhancement, restoration or maintenance of such property for any reason, including prevention of injury to a person or damage to another's property; 2. Premises you sell, give away or abandon, if the property damage arises out of any part of those premises; 3. Property loaned to you; 4. Personal property in the care, custody or control of any insured ; 5. That particular part of real property on which you or any contractors or subcontractors working directly or indirectly on your behalf are performing operations, if the property damage arises out of those operations; or 6. That particular part of any property that must be restored, repaired or replaced because your work was incorrectly performed on it. Paragraphs 1, 3 and 4 of this exclusion do not apply to property damage (other than damage by fire) to premises, including the contents of such premises, rented to you for a period of seven (7) or fewer consecutive days. Paragraph 2 of this exclusion does not apply if the premises are your work and were never occupied, rented or held for rental by you. Paragraphs 3, 4, 5 and 6 of this exclusion do not apply to liability assumed under a sidetrack agreement. Paragraph 6 of this exclusion does not apply to property damage included in the productscompleted operations hazard. Damage to Your Product Property damage to your product arising out of it or any part of it. Damage to Your Work 1. Property damage to your work arising out of it or any part of it and included in the products-completed operations hazard. 2. This exclusion does not apply if the damaged work or the work out of which the damage arises was performed on your behalf by a subcontractor. Electronic Data Damages arising out of the loss of, loss of use of, damage to, corruption of, inability to access, or inability to manipulate electronic data. As used in this exclusion, electronic data means information, facts or programs stored as or on, created or used on, or transmitted to or from computer software, including systems and applications software, hard or floppy disks, CD-ROMS, tapes, drives, cells, data processing devices or any other media which are used with electronically controlled equipment. Employee, Volunteer or Worker Injury 1. Bodily injury, property damage or personal and advertising injury sustained by an employee, volunteer worker or temporary worker of the insured arising out of and in the course of: a. Employment by the insured ; or b. Performing duties related to the conduct of the insured s business. XAB (11/14) 2014 Page 13 of 27

15 Exclusions Coverage B Employee, Volunteer or Worker Injury - Continued 2. Bodily injury, property damage or personal and advertising injury sustained by the spouse, child, parent, brother or sister of such injured person, as a consequence of any injury or damage described in paragraph 1. above. 3. This exclusion applies: a. Whether the insured may be liable as an employer or in any other capacity; and b. To any obligation to share damages with or repay someone else who must pay damages because of the injury. Expected or Intended Injury Bodily injury or property damage expected or intended from the standpoint of the insured. This exclusion does not apply to bodily injury or property damage resulting from the use of reasonable force to protect persons or property. Fungi or Mold 1. Any liability, injury, damage, expense loss, cost or legal obligation arising out of or in any way related to any fungi. This exclusion applies regardless of whether any other cause, event, material or product contributed concurrently or in any sequence to the actual, alleged or threatened injury, damage, loss, cost or expense. 2. With respect to this exclusion fungi means any type or form of fungus, mold, mildew, mycotoxins, spores, or scents or by-products produced or released by any of these. Infringement of Intellectual Property Right Any liability, injury, damage, expense, loss, cost or legal obligation arising out of the infringement of copyright, patent, trademark, trade secret, trade dress, service mark, certification mark (including collective marks) or other intellectual property right. This exclusion does not apply to infringement, in your advertisement, of copyright, trade dress or slogan. Liquor Liability Any bodily injury or property damage arising out of: 1. Causing or contributing to the intoxication of any person; 2. The furnishing of alcoholic beverages to a person under the legal drinking age or under the influence of alcohol; or 3. Any statute, ordinance or regulation relating to the sale, gift, distribution or use of alcoholic beverages. Media or Internet-Type Businesses and Other Internet Activities 1. Personal and advertising injury committed by an insured whose business is: a. Advertising, broadcasting, publishing or telecasting; or b. An Internet search, access, content or service provider. 2. Personal and advertising injury arising out of: a. An electronic chat room or bulletin board the insured hosts, owns, or over which the insured exercises control. b. Designing or determining content of web-sites for others; or c. Publication of content or material on or from the Internet, other than material developed by you or at your direction. 3. This exclusion does not apply to a. False arrest, detention or imprisonment; b. Malicious prosecution; or XAB (11/14) 2014 Page 14 of 27

16 Exclusions Coverage B Media or Internet-Type Businesses and Other Internet Activities Continued c. The wrongful eviction from, wrongful entry into, or invasion of the right of private occupancy of a room, dwelling or premises that a person occupies, committed by or on behalf of its owner, landlord or lessor. 4. For the purposes of this exclusion, the placing of frames, borders or links, or advertising, for you or others anywhere on the Internet is not, by itself, considered the business of advertising, broadcasting, publishing or telecasting. Other Personal and Advertising Injury 1. Personal and advertising injury caused by or at the direction of the insured with the knowledge that the act would violate the rights of another and would inflict personal injury and advertising injury. 2. Personal and advertising injury arising out of oral or written publication of material, if done by or at the direction of the insured with knowledge of its falsity. 3. Personal and advertising injury arising out of oral or written publication of material whose publication took place before the beginning of the policy period. 4. Personal and advertising injury arising out of a criminal act committed by or at the direction of the insured. 5. Personal and advertising injury arising out of a breach of contract, except an implied contract to use another's advertising idea in your advertisement. 6. Personal and advertising injury arising out of the failure of goods, products or services to conform with any statement of quality or performance made in your advertisement. 7. Personal and advertising injury arising out of the wrong description of the price of goods, products or services stated in your advertisement. 8. Personal Injury, including consequential bodily injury, arising out of non-employment related discrimination against a natural person in violation of federal or state civil rights laws. Pollution 1. Any liability, injury, damage, expense, loss, cost or legal obligation arising out of the actual, alleged or threatened discharge, dispersal, seepage, migration, release or escape of pollutants. 2. Any liability, injury, damage, expense, loss, cost or legal obligation arising out of any: a. Request, demand, order or statutory or regulatory requirement that any insured or others test for, monitor, clean up, remove, contain, treat, detoxify or neutralize, or in any way respond to, or assess the effects of, pollutants ; or b. Claim or suit by or on behalf of a governmental authority for damages because of testing for, monitoring, cleaning up, removing, containing, treating, detoxifying or neutralizing, or in any way responding to, or assessing the effects of, pollutants. Recall of Products, Work or Impaired Property Bodily injury, property damage, personal injury and advertising injury or any other loss, cost or expense incurred by you or others for the loss of use, withdrawal, recall, inspection, repair, replacement, adjustment, removal or disposal of: 1. Your product ; 2. Your work ; or 3. Impaired property ; If such product, work, or property is withdrawn or recalled from the market or from use by any person or organization because of a known or suspected defect, deficiency, inadequacy or dangerous condition in it. XAB (11/14) 2014 Page 15 of 27

17 Watercraft Exclusions Coverage B Continued 1. Bodily injury or property damage arising out of the ownership, maintenance, use (use includes operation and loading or unloading ) or entrustment to others of any watercraft owned or operated by or loaned or rented to any insured. 2. This exclusion does not apply to a watercraft: a. While ashore on premises owned by or rented to you; or b. That is not owned, in whole or in part, by any insured. Exclusions - Coverage D Key Executive Personal Liability With respect to Coverage D Key Executive Personal Liability, this insurance does not apply to: Aircraft 1. Any liability, injury, damage, expense, loss, cost or legal obligation arising out of the ownership, maintenance, use (use includes operation, loading or unloading ) or entrustment to others of any aircraft owned or operated by or rented or loaned to any insured. 2. This exclusion applies even if claims against any insured allege negligence or other wrongdoing in the supervision, hiring, employment, training or monitoring of others by any insured. Abuse or Molestation Any liability, injury, damage, expense, loss, cost or legal obligation arising out of the actual, alleged or threatened abuse or molestation of any person or the failure to prevent such actual, alleged or threatened abuse, including but not limited to: 1. Physical abuse; 2. Corporal punishment; 3. Sexual abuse; 4. Sexual molestation; or 5. Sexual misconduct. Business Activities Any liability, injury, damage, expense, loss, cost or legal obligation arising out of or in connection with any person or organization s business activities, investments or other for-profit activities. Business activities include but are not limited to engaging in a trade, profession or occupation on a full-time, part-time or occasional basis. Business activities do not include volunteer activities for which no money is received other than payment for expenses incurred to perform the activity. Communicable Disease Any liability, injury, damage, expense, loss, cost or legal obligation arising out of the transmission or fear of transmission of a communicable disease. Contractual Liability Any liability, injury, damage, expense, loss, cost or legal obligation arising out of liability for which the insured is obligated to pay damages by reason of the assumption of liability in a contract or agreement. This exclusion does not apply to liability for damages that the insured would have in the absence of the contract or agreement. Controlled Substances Any liability, injury, damage, expense, loss, cost or legal obligation arising out of the use, sale, manufacture, delivery, transfer or possession by any person of a Controlled Substance as defined by the Federal Food and Drug Law. XAB (11/14) 2014 Page 16 of 27

18 Exclusions Coverage D Controlled Substances - Continued This exclusion does not apply to the legitimate use of prescription drugs by a person following the orders of a licensed physician. Directors and Officers Wrongful Acts Exclusion This insurance does not apply to any claim or suit for wrongful acts committed, attempted, or alleged to have been committed or attempted by the directors or officers of any insured in the discharge of their duties, either individually or collectively. This exclusion does not apply to bodily injury, property damage, or personal or advertising injury arising out of wrongful acts. Wrongful acts means any actual or alleged breach of duty, neglect, error, misstatement, misleading statement, omission or any other acts incidental thereto. Entrustment of Property Bodily injury arising out of the entrustment of property. Expected or Intended Injury Bodily injury expected or intended from the standpoint of the insured. This exclusion does not apply to bodily injury resulting from the use of reasonable force to protect persons or property. Infringement of Intellectual Property Right Any liability, injury, damage, expense, loss, cost or legal obligation arising out of the infringement of copyright, patent, trademark, trade secret or other intellectual property right. Members of the Household Bodily injury sustained by any insured or any person who regularly resides on a residential property owned by an insured. Motorized Land Vehicles Any bodily injury arising out of the ownership, maintenance, use (use includes operation and loading or unloading ) or entrustment to others of any motorized land vehicle that is not an auto that is registered and licensed for use on public roads. Pollution 1. Any liability, injury, damage, expense, loss, cost or legal obligation arising out of the actual, alleged or threatened discharge, dispersal, seepage, migration, release or escape of pollutants. 2. Any liability, injury, damage, expense, loss, cost or legal obligation arising out of any: a. Request, demand, order or statutory or regulatory requirement that any insured or others test for, monitor, clean up, remove, contain, treat, detoxify or neutralize, or in any way respond to, or assess the effects of, pollutants ; or b. Claim or suit by or on behalf of a governmental authority for damages because of testing for, monitoring, cleaning up, removing, containing, treating, detoxifying or neutralizing, or in any way responding to, or assessing the effects of, pollutants. Racing of an Auto Any liability, injury, damage, expense, loss, cost or legal obligation arising out of the ownership, maintenance or operation of any auto in any race, speed contest or other competition. XAB (11/14) 2014 Page 17 of 27