commercial liability coverage (farm premises and … 2.0.pdf · 2017-08-01 · liability coverage....

AAISGL-610 Ed 2.0 THIS IS A LEGAL CONTRACT of 16 -- PLEASE READ THIS CAREFULLY --

COMMERCIAL LIABILITY COVERAGE(FARM PREMISES AND OPERATIONS)

The following Table of Contents shows how this Commercial Liability Coverage isorganized. It will help "you" locate particular sections of this form.

TABLE OF CONTENTSPage

Agreement ......................................................................................... 1

Definitions.......................................................................................... 2

Principal Coverages

Coverage L -- Bodily Injury Liability/PropertyDamage Liability.......................................................................... 5

Coverage M -- Medical Payments............................................... 5

Coverage O -- Fire Legal Liability ............................................... 5

Supplemental Coverages .................................................................. 6

Defense Coverages........................................................................... 6

Exclusions ......................................................................................... 7

What Must Be Done In Case Of Loss ...............................................11

How Much We Pay ...........................................................................12

Conditions..........................................................................................13

Nuclear Energy Liability Exclusion.....................................................15

Additional provisions are shown separately.

Endorsements may also apply. They are identified on the "declarations".

Refer to the Definitions for words and phrases that have special meaning. Thesewords and phrases are shown in quotation marks or bold type.

AGREEMENT

In return for "your" payment of the required premium, "we" provide the coveragesdescribed herein subject to all the "terms".

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Not to be attached to any policy.

AAISGL-610 Ed 2.0 of 16

DEFINITIONS

1. The words "you" and "your" mean theperson, persons, or organization named asthe insured on the "declarations".

2. The words "we", "us", and "our" mean thecompany providing this Commercial LiabilityCoverage.

3. "Bodily Injury" means bodily harm to aperson and includes sickness, disease, ordeath. This also includes required care andloss of services.

"Bodily Injury" does not mean bodily harm,sickness, disease, or death that arises outof:

a. a communicable disease;

b. the actual, alleged, or threatened sexualmolestation of a person;

c. mental or emotional injury, suffering, ordistress that does not result fromphysical injury; or

d. the use, sale, manufacture, delivery,transfer, or possession by any person ofControlled Substances as defined by theFederal Food and Drug Law at 21U.S.C.A Sections 811 and 812, includingany amendments. ControlledSubstances include but are not limited tococaine, LSD, marijuana, and allnarcotic or hallucinogenic drugs.However, this does not apply to thelegitimate use of prescription drugs by aperson following the orders of a licensedphysician.

4. "Damages" means compensation in the formof money for a person who claims to havesuffered an injury.

5. "Declarations" are all pages labeledDeclarations, Supplemental Declarations, orSchedules which pertain to this CommercialLiability Coverage.

6. "Farming" means the ownership,maintenance, or use of premises for theproduction of crops or the raising or care oflivestock, including all necessary operations.

"Farming" also includes the operations ofroadside stands and farm marketsmaintained principally for the sale of the"insured's" own farm products, but it doesnot include other retail activities.

7. "Insured" -- If shown on the "declarations" asan Individual, "insured" means "you" and, ifmembers of "your" household, "your" spouseand "your" or "your" spouse's relatives underthe age of 21.

If shown on the "declarations" as aPartnership or a Joint Venture, "insured"means "you" and all "your" partners ormembers and their spouses, but only withrespect to the conduct of "your" "farming"operations.

If shown on the "declarations" as anOrganization (other than a Partnership orJoint Venture), "insured" means "you" and allof "your" executive officers and directors, butonly while acting within the scope of theirduties as such. It also includes "your"stockholders, but only for their liability assuch.

"Insured" also includes:

a. any person or organization, except"your" employees, while acting as "your"real estate manager.

b. if "you" die during the policy period,"your" legal representative while actingwithin the scope of those duties as suchwith respect to the "insured premises",or a person who has custody of "your"property with respect to liability arisingout of the maintenance or use of thatproperty until "your" legal representativeis appointed. "Your" legal representativehas all "your" rights and duties under thiscoverage.

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c. "your" employees, for acts within thescope of their employment by "you" (thisdoes not include "your" executiveofficers). None of these employees are"insureds" for:

1) injury to "you" or a fellow employee;or

2) "property damage" to propertyowned by, rented to or loaned toemployees, or any of "your" partnersor members and their spouses (if"you" are a joint venture or apartnership).

d. persons other than "your" employees,including another person or anorganization legally liable for the conductof such persons, but only:

1) for liability arising out of the use orcare of vehicles or animals ownedby "you" and to which thisCommercial Liability Coverageapplies; and

2) if there is no other insurancecovering the liability available tothem.

e. any organization (other than a jointventure or a partnership) newly acquiredor formed by "you", and in which "you"have a majority interest.

Such an organization is not an "insured":

1) if there is other similar insuranceavailable to it;

2) after 90 days immediately followingthat acquisition or formation or theend of the policy period, whicheveris earlier; or

3) for "bodily injury" or "propertydamage" that occurred prior to theacquisition or formation.

No person or organization is an "insured"with respect to the conduct of a current orpast partnership or joint venture that is notshown on the "declarations" as an "insured".

8. "Insured Premises" means the locationshown on the "declarations" and operated orused for "farming" purposes. This includesbuildings used as residences, grounds, andall adjoining access ways.

9. "Limit" means the amount of coverage thatapplies.

10. "Loading or unloading" means themovement of property:

a. starting with the time it is removed fromthe point where it has been accepted fortransit by a "motorized vehicle", anaircraft, or watercraft;

b. continuing while it is on such vehicle;and

c. ending when it has been removed fromthe vehicle at its point of destination.

"Loading or unloading" includes movementby a hand truck; or any mechanical deviceonly when attached to the vehicle.

11. "Motorized Vehicle" means a self-propelledland or amphibious vehicle regardless ofmethod of surface contact. This includesparts and equipment.

This does not include vehicles that aredesigned and used to assist thehandicapped and not required to be licensedfor road use.

12. "Occurrence" means an accident andincludes repeated exposure to similarconditions.

13. "Pollutant" means:

a. any solid, liquid, gaseous, thermal, orradioactive irritant or contaminant,including acids, alkalis, chemicals,fumes, smoke, soot, vapor, and waste.Waste includes materials to be recycled,reclaimed, or reconditioned, as well asdisposed of.

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b. electrical or magnetic emissions,whether visible or invisible, and soundemissions.

14. "Products/Completed Work Hazard" --

a. "Products hazard" means "bodily injury"or "property damage" arising out of"products" after physical possession ofthe "products" has been relinquished toothers.

b. "Completed work hazard" means "bodilyinjury" or "property damage" arising outof "your work". It does not include workthat has not been completed, or that hasnot been abandoned.

"Your work" is deemed completed at theearliest of the following times:

1) when all work specified in "your"contract has been done;

2) when all work to be done at a jobsite has been completed if "your"contract includes work at more thanone site; or

3) when "your work" at a job site hasbeen put to its intended use bysomeone other than anothercontractor or subcontractor workingon the same job site.

Work which requires further service,maintenance, correction, repair, orreplacement because of a defect ordeficiency, but which is otherwise complete,shall be deemed completed.

c. Neither of these hazards include "bodilyinjury" or "property damage" arising outof:

1) the transportation of property, unlessthe injury or damage arises out of acondition in or on a vehicle, createdby "loading or unloading";

2) the presence of tools, uninstalledequipment, or abandoned or unusedmaterials; or

3) "products" or work for which theclassification on the "declarations"

specifies "including Products/CompletedWork."

15. "Products" means goods or productsmanufactured, sold, handled, distributed, ordisposed of by "you", others trading under"your" name, or a person or organizationwhose business or assets "you" haveacquired.

"Products" includes:

a. warranties or representations made atany time with respect to the fitness,quality, durability, or performance of"products";

b. containers (other than vehicles),materials, parts, or equipment furnishedin connection with "products"; and

c. providing or failing to provide warningsor instructions.

"Products" does not include vendingmachines or other property that is rented toor placed for the use of others, but not sold;or real property.

16. "Property Damage" means:

a. physical injury or destruction of tangibleproperty; or

b. the loss of use of tangible propertywhether or not it is physically damaged.Loss of use is deemed to occur at thetime of the "occurrence" that caused it.

17. "Terms" means all provisions, limitations,exclusions, conditions, and definitions thatapply to this Commercial Liability Coverage.

18. "Your Work" means:

a. work or operations performed by "you"or on "your" behalf;

b. materials, parts, and equipment suppliedfor such work or operations;

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c. written warranties or representationsmade at any time regarding quality,fitness, durability, or performance of anyof the foregoing; and

d. providing or failing to provide warningsor instructions.

PRINCIPAL COVERAGES

"We" provide insurance for the followingcoverages indicated by a specific "limit" orpremium charge on the "declarations".

COVERAGE L -- BODILY INJURY LIABILITYPROPERTY DAMAGE LIABILITY

"We" pay all sums which an "insured" becomeslegally obligated to pay as "damages" due to"bodily injury" or "property damage" to which thisinsurance applies. The "bodily injury" or "propertydamage" must be caused by an "occurrence"and arise out of the ownership, maintenance, oruse of the "insured premises" or operations thatare necessary or incidental to the "insuredpremises".

This insurance applies only to "bodily injury" or"property damage" which occurs during thepolicy period.

COVERAGE M -- MEDICAL PAYMENTS

1. "We" pay the medical expenses definedbelow for "bodily injury" caused by anaccident:

a. on premises "you" own or rent;

b. on ways adjacent or next to premises"you" own or rent; or

c. arising out of "your" operations.

2. "We" pay such expenses regardless of fault,but only if:

a. they arise out of an accident thatoccurred during the policy period; and

b. they are incurred and reported withinone year of the accident.

3. Medical expenses means the reasonableand necessary expenses for:

a. medical, surgical, x-ray, and dentalservices, including prosthetic devicesand eye glasses;

b. ambulance, hospital, professionalnursing, and funeral services; and

c. first aid at the time of an accident.

COVERAGE O -- FIRE LEGAL LIABILITY

"We" pay for "property damage" to buildings orparts of buildings, which "you" rent from another,or which are loaned to "you", in conjunction with"your" "farming" operations, if the "propertydamage" is caused by fire for which "you" arelegally liable. Buildings include fixturespermanently attached thereto.

All of the exclusions otherwise applicable to"property damage" do not apply to this coverage.However, "we" do not cover:

1. liability arising under any contract oragreement to indemnify any person ororganization for "damages" by fire to thepremises; or

2. liability arising out of "property damage":

a. which is expected by, directed by, orintended by the "insured"; or

b. that is the result of intentional andmalicious acts of the "insured".

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SUPPLEMENTAL COVERAGES

Subject to all the "terms" of the PrincipalCoverages, "we" provide the followingsupplemental coverages. They do not increasethe "limits" stated for the Principal Coverages.

INCIDENTAL CONTRACTUAL LIABILITY

"We" cover "bodily injury" or "property damage"liability which is assumed under the followingcontracts or agreements:

1. lease of premises;

2. easement or license agreement (this doesnot include an agreement in connection withany construction or demolition operationwithin 50 feet of a railroad);

3. promise to indemnify a municipality ifrequired by an ordinance (this does notapply in connection with work done for themunicipality);

4. sidetrack agreement; or

5. elevator maintenance agreement.

This coverage does not apply to that part of anycontract or agreement that indemnifies anyperson or organization for damage by fire topremises rented or loaned to "you".

MOTORIZED VEHICLES AND WATERCRAFT

"We" pay for "bodily injury" or "property damage"arising out of:

1. the parking of a "motorized vehicle" onpremises owned by, rented to, or controlledby "you" or on the ways immediatelyadjoining, if the "motorized vehicle" is notowned by, rented to, or loaned to an"insured";

2. a "motorized vehicle" which is designed onlyfor use off public roads and which is used toservice the "insured premises"

(However, this coverage does not apply to"bodily injury" or "property damage" whichresults from a "motorized vehicle" while usedfor recreational purposes away from the"insured premises".);

3. a "motorized vehicle" while on the "insuredpremises", if the "motorized vehicle" is notsubject to motor vehicle registration becauseof its type or use; or

4. a watercraft that is on shore on premisesowned by, rented to, or controlled by "you".

CUSTOM FARM WORK

"We" pay for "bodily injury" or "property damage"arising out of the "insured's" performance of orfailure to perform custom farm work for othersfor a charge under contract or agreement.Custom farm work includes the use of draftanimals, farm tractors, farm trailers, farmimplements, and other farm machinery used inperforming the work.

This coverage applies only if "your" receipts fromcustom farm work for the 12 months just beforethe date of the "occurrence" do not exceed$5,000. This coverage does not apply to "bodilyinjury" or "property damage" which results fromthe application of pesticides or herbicides.

DEFENSE COVERAGE

Payments under this coverage are in addition tothe "limits" for the Commercial LiabilityCoverage.

1. "We" have the right and duty to defend a suitseeking "damages" for "bodily injury" or"property damage" which may be coveredunder the Commercial Liability Coverage."We" may make investigations and settleclaims or suits "we" decide are appropriate.

Suit includes any alternative disputeresolution proceeding involving "bodily injury"or "property damage" to which:

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a. "you" must submit; or

b. "you" submit with "our" consent.

2. "We" do not have to provide defense after"we" have paid an amount equal to the "limit"as the result of:

a. a judgment; or

b. a written settlement agreed to by "us".

3. If "we" defend a suit, "we" will pay:

a. the costs taxed to the "insured";

b. the expenses incurred by "us";

c. the actual loss of earnings by an"insured" for the time spent away fromwork at "our" request. "We" pay up to$100 per day;

d. the necessary expenses incurred by an"insured" at "our" request;

e. pre-judgment interest awarded againstany "insured" on that part of thejudgment "we" pay. If "we" offer to paythe "limit", "we" will not pay any pre-judgment interest based on that periodof time after the offer;

f. the interest which accrues beginningwith entry of a judgment and endingwhen "we" tender, deposit in court, orpay up to "our" "limit";

g. the cost of appeal bonds or bonds forthe release of attachments up to "our""limit". "We" are not required to apply foror furnish such bonds; and

h. the cost, up to $500, for bail bondsrequired of an "insured" because of anaccident or traffic violation arising out ofthe use of a vehicle to which Coverage Lapplies. "We" are not require to apply foror furnish such bonds.

EXCLUSIONS

"We" do not pay for a loss if one or more of thefollowing excluded events apply to the loss,regardless of other causes or events thatcontribute to or aggravate the loss, whether suchcauses or events act to produce the loss before,at the same time as, or after the excluded event.

EXCLUSIONS THAT APPLY TO BODILYINJURY AND/OR PROPERTY DAMAGE

1. "We" do not pay for "bodily injury" or"property damage":

a. which is expected by, directed by, orintended by the "insured"; or

b. that is the result of intentional andmalicious acts of the "insured".

This exclusion does not apply to "bodilyinjury" that arises out of the use ofreasonable force to protect people orproperty.

2. "We" do not pay for "bodily injury" or"property damage" liability which is assumedunder a contract or an agreement.

This exclusion does not apply to:

a. liability that an "insured" would have hadin the absence of the contract oragreement; or

b. "bodily injury" or "property damage"covered under Incidental ContractualLiability Coverage,

provided that the "bodily injury" or "propertydamage" occurs after the effective date ofthe contract or agreement.

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3. "We" do not pay for "bodily injury" or"property damage" that arises out of therendering or the failure to render aprofessional service.

4. "We" do not pay for "bodily injury" or"property damage" that arises out of the useof "motorized vehicles" in, or in the practiceor preparation, for racing, speed, pulling orpushing, demolition, or stunt activities orcontests.

5. "We" do not pay for "bodily injury" or"property damage" that arises out of theownership, use, maintenance, rental, orholding for rental of any part of the "insuredpremises" for purposes other than "farming".

This includes the rental of any part of the"insured premises" for dwelling purposes.However, this exclusion does not apply to aresidence rented to a person who occupiesand farms the "insured premises" or to aresidence on the "insured premises"occupied by no more than two roomers orboarders.

6. "We" do not pay for "bodily injury" or"property damage" that arises out of theownership, operation, maintenance, use,occupancy, renting, loaning, entrusting,supervision, or "loading or unloading" of:

a. an aircraft;

b. a "motorized vehicle"; or

c. a watercraft;

except as provided under SupplementalMotorized Vehicles and WatercraftCoverage.

7. "We" do not pay for "bodily injury" or"property damage" for which any "insured"may be held liable by reason of:

a. causing or contributing to theintoxication of a person;

b. the furnishing of alcoholic beverages toa person under the influence of alcoholor under the legal drinking age; or

c. a law or regulation relating to the sale,gift, distribution, or use of alcoholicbeverages.

This exclusion applies if "you" are in thebusiness of manufacturing, distributing,selling, or serving alcoholic beverages.

8. "We" do not pay for:

a. "bodily injury" to an employee of an"insured" if it occurs in the course ofemployment by the "insured"; or

b. consequential injuries to a spouse, child,parent, sister, or brother of such injuredemployee.

This exclusion applies where the "insured" isliable either as an employer or in any othercapacity; or there is an obligation to fully orpartially reimburse a third person for"damages" arising out of paragraphs 8.a or8.b above.

This exclusion does not apply to liabilityassumed by an "insured" under a contractcovered by Incidental Contractual LiabilityCoverage.

9. "We" do not pay for:

a. "bodily injury" or "property damage"arising out of the actual, alleged, orthreatened discharge, dispersal, release,or escape of "pollutants":

1) at or from any premises, site, orlocation which is or was at any timeowned by, occupied by, rented to, orloaned to any "insured", unless the"bodily injury" or "property damage"arises from the heat, smoke, orfumes of a fire which:

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a) becomes uncontrollable orbreaks out from where it wasintended to be located; or

b) is set by the "insured" on the"insured premises" for thepurpose of burning off cropstubble or other vegetationconsistent with normal andusual "farming" practices, and isnot in violation of anyordinances or laws;

2) at or from any premises, site, orlocation which is or was at any timeused by or for any "insured" orothers, for the handling, storage,disposal, processing, or treatment ofwaste;

3) which are or were at any timetransported, handled, stored,treated, disposed of, or processedas waste by or for any "insured" orany person or organization for whomany "insured" may be legallyresponsible; or

4) at or from any premises, site, orlocation where any "insured" or anycontractor or subcontractor, directlyor indirectly under "your" control, isworking:a) if the "pollutants" are brought on

or to the premises, site, orlocation in connection with suchwork by such "insured", unlessthe "bodily injury" or "propertydamage" arises from the heat,smoke, or fumes of a fire whichbecomes uncontrollable orbreaks out from where it wasintended to be located; or

b) if the work is to test for, monitor,clean up, remove, contain, treat,detoxify, neutralize, or in anyway respond to or assess theeffect of "pollutants".

b. any loss, cost, or expense arising out ofany:

1) request, demand, or order that any"insured" or others test for monitor,clean up, remove, contain, treat,detoxify, neutralize, or in any wayrespond to or assess the effects of"pollutants"; or

2) claim or suit by or on behalf of anygovernmental authority relating totesting for, monitoring, cleaning up,removing, containing, treating,detoxifying, neutralizing, or in anyway responding to or assessing theeffects of "pollutants".

10. "We" do not pay for "bodily injury" if benefitsare provided or are required to be providedby the "insured" under a workers'compensation, disability benefits,occupational disease, unemploymentcompensation, or like law.

11. "We" do not pay for "bodily injury" or"property damage" that arises out of war.War includes undeclared war, civil war,insurrection, rebellion or revolution, or an actor a condition of war.

12. "We" do not pay for "bodily injury" or"property damage" arising out of anysubstance released or discharged from anyaircraft.

13. "We" do not pay for "bodily injury" or"property damage" that arises out of theownership, use, or maintenance of:

a. farm tools, farm tractors and trailers, anddraft animals (including vehicles usedwith such animals) under contract toothers for a charge;

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b. draft animals (including vehicles usedwith such animals) for route deliverypurposes;

c. saddle animals while they are rented toothers by or for an "insured"; or

d. an animal in, or in the practice orpreparation for, any prearranged racing,speed, pulling or pushing, or stuntactivities or contests. However thisexclusion applies only to "occurrences"that take place at the locationdesignated for the contest or activity.

ADDITIONAL EXCLUSIONS THAT APPLYONLY TO PROPERTY DAMAGE

1. "We" do not pay for "property damage" toproperty owned by, occupied by, or rented to"you", except as covered under Coverage O-- Fire Legal Liability.

2. "We" do not pay for "property damage" topremises "you" sell, give away, or abandon,if the "property damage" arises out of anypart of those premises.

3. "We" do not pay for "property damage" toproperty used by or loaned to "you". Thisexclusion does not apply with respect toliability assumed under a written sidetrackagreement.

4. "We" do not pay for "property damage" toeither business or non-business personalproperty in the care, custody, or control of an"insured". This exclusion does not apply withrespect to liability assumed under a writtensidetrack agreement.

5. "We" do not pay for "property damage" tothat specific part of any property that must berestored, repaired, or replaced because offaults in "your work". However, thisexclusion does not apply to:

a. "property damage" covered under the"products/completed work hazard"; or

b. liability assumed under a sidetrackagreement.

6. "We" do not pay for "property damage" to"products" if the damage arises out of the"products" or their parts.

7. "We" do not pay for "property damage" to"your work" if the "property damage" arisesout of "your work" and is included in the"products/completed work hazard".However, this exclusion does not apply to:

a. operations necessary or incidental to theownership, use, or maintenance of the"insured premises"; or

b. the Supplemental Custom Farm WorkCoverage.

8. "We" do not pay for "property damage" toproperty that has not been physically injuredor destroyed, or to impaired property thatarises out of:

a. a delay or failure to perform a contractby "you" or one acting on "your" behalf;or

b. a defect, deficiency, inadequacy, orunsafe condition in "your work" or"products".

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However, this exclusion does not apply tothe loss of use of other property resultingfrom sudden and accidental injury to ordestruction of "your work" or "products" afterhaving been put to its intended use; or toSupplemental Custom Farm WorkCoverage.

9. "We" do not pay for any loss or expenseincurred by "you" or anyone else arising outof the loss of use, disposal, withdrawal,recall, inspection, repair, replacement,adjustment, or removal (including anyexpenses involved in the withdrawal orrecall) of "your work", "products", or impairedproperty. This applies when the loss of use,disposal, withdrawal, recall, inspection,repair, replacement, adjustment, or removalwas because of a known or suspecteddefect, deficiency, or unsafe condition.

ADDITIONAL EXCLUSIONS THAT APPLYONLY TO MEDICAL PAYMENTS

These exclusions apply in addition to the otherexclusions that apply to "bodily injury".

1. "We" do not pay for medical expenses for"bodily injury" to an "insured".

2. "We" do not pay for medical expenses for"bodily injury" to a person:

a. hired by or on behalf of any "insured" todo work for any "insured" or a tenant ofany "insured"; or

b. engaged in work usual or incidental tothe use of the "insured premises".

However, this exclusion does not apply to"bodily injury" sustained by a person on the"insured premises" in a neighborly exchangeof assistance for which the "insured" is notobligated to pay any money.

3. "We" do not pay for medical expenses for"bodily injury" to a person injured on that partof the premises that the person normallyoccupies.

4. "We" do not pay for medical expenses for"bodily injury" to a person while taking part inathletic activities.

5. "We" do not pay for medical expenses for"bodily injury" included in the "products/completed work hazard".

6. "We" do not pay for medical expenses for"bodily injury" to a person if benefits areprovided or required to be provided underany workers' compensation,nonoccupational disability, occupationaldisease, or like law.

WHAT MUST BE DONEIN CASE OF LOSS

1. Notice --

a. In the case of an "occurrence", or if an"insured" becomes aware of anythingthat indicates that there might be a claimunder the Commercial LiabilityCoverage, "you" must arrange forprompt notice to be given to "us" or "our"agent. Notice to "our" agent is notice to"us".

b. The notice to "us" must state:

1) the "insured's" name;2) the policy number;3) the time, the place, and the

circumstances of the "occurrence"or the situation that indicates thatthere might be a claim; and

4) the names and addresses of allknown potential claimants andwitnesses.

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2. Cooperation -- All "insureds" involved withan "occurrence" must cooperate with "us" inperforming all acts required by thisCommercial Liability Coverage.

3. Volunteer Payments -- An "insured" mustnot make payments or assume obligationsor other costs except at the "insured's" owncost. This does not apply to first aid to othersat the time of "bodily injury".

4. Other Duties --

a. If a claim is made or suit is brought, the"insured" must:

1) promptly send to "us" copies of alllegal papers, demands, and notices;and

2) at "our" request assist in:a) a settlement;b) the conduct of suits. (This

includes the attendance at trialsor hearings);

c) the enforcing of rights against allparties who may be liable to an"insured" for the injury ordamage;

d) the securing of and giving ofevidence; and

e) obtaining the attendance of allwitnesses.

b. In the case of a medical payments loss:

1) the injured person (or one acting onsuch person's behalf) must:a) give "us" written proof of claim

(under oath if requested) assoon as practicable; and

b) give "us" permission to getcopies of the medical records;

2) the injured person must submit tomedical exams by doctors chosenby "us" when and as often as "we"may reasonably require.

HOW MUCH WE PAY

1. The "limits", shown on the "declarations" andsubject to the following conditions, are themost "we" pay regardless of the number of:

a. "insureds" under this CommercialLiability Coverage;

b. persons or organizations who sustaininjury or damage; or

c. claims made or suits brought.

The payment of a claim under Coverage Mdoes not mean that "we" admit "we" areliable under other coverages.

2. The General Aggregate Limit is the most"we" will pay during a policy period for thesum of:

a. all "damages" under Coverage L, except"damages" due to "bodily injury" or"property damage" included in the"products/completed work hazard";

b. all medical expenses under CoverageM; and

c. all "damages" under Coverage O.

3. The Products/Completed Work HazardAggregate Limit is the most "we" will payduring a policy period for "damages" due to"bodily injury" or "property damage" includedin the "products/completed work hazard".

4. The Each Occurrence Limit, subject to theGeneral Aggregate Limit and theProducts/Completed Work HazardAggregate Limit, is the most "we" will pay forthe total of:

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a. "damages" under Coverages L and O,and

b. medical expenses under Coverage M

due to all "bodily injury" and "propertydamage" arising out of a single"occurrence".

5. Subject to the Each Occurrence Limit andthe General Aggregate Limit, "our" "limit" for"property damage" covered under CoverageO is $50,000 for each "occurrence" unlessshown otherwise on the "declarations".

6. Subject to the Each Occurrence Limit andthe General Aggregate Limit, the CoverageM Limit is the most that "we" will pay underCoverage M for all medical expensesbecause of "bodily injury" sustained by anyone person.

The General Aggregate Limit and theProducts/Completed Work Hazard AggregateLimit apply separately to each consecutive 12-month period beginning with the inception dateshown on the "declarations" for this CommercialLiability Coverage. They also apply separately toany remaining policy period of less than 12months, unless the Commercial LiabilityCoverage has been extended after it was written.In that case, the additional period will beconsidered part of the last preceding period forthe purpose of determining "limits".

CONDITIONS

1. Bankruptcy -- Bankruptcy or insolvency ofan "insured" does not relieve "us" of "our"obligations under this Commercial LiabilityCoverage.

2. Insurance Under More Than One Policy --(This does not apply to Coverage M --Medical Payments.)

a. Insurance under this CommercialLiability Coverage is primary except asprovided under paragraph 2.c. below, orunless otherwise stated. The amount of"our" liability is not reduced because ofother insurance which applies to the losson other than a primary basis.

b. If the other insurance is also primary,"we" will share in the loss as follows:

1) If the other insurance provides forcontribution by equal shares, "we"will pay equal amounts with otherinsurers until:a) the lowest applicable "limit"

under any one policy is reached;or

b) the full amount of the loss ispaid.

If part of the loss remains unpaid,"we" will pay an equal share with theother insurers until the full amount ofthe loss is paid, or until "we" havepaid "our" "limit" in full.

2) If the other insurance does notprovide for contribution by equalshares, "we" will pay, up to "our""limit", no more than that proportionof the loss to which the applicable"limit" under this policy for such lossbears to the total applicable "limit"for all insurance against the loss.

c. Insurance under this CommercialLiability Coverage is excess over anyother insurance:

1) if the other insurance, whetherprimary, excess, contingent or onany other basis, provides:a) fire, extended coverage,

builders' risk, installation risk, orsimilar coverage for "your work";or

b) fire insurance for premisesrented to "you"; or

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2) if the other insurance applies to anyloss arising out of the maintenanceor use of aircraft, "motorizedvehicles", or watercraft which maybe covered by this CommercialLiability Coverage.

d. When this insurance is excess over anyother insurance:

1) "we" will have no duty to defend anyclaim or suit that any other insurerhas a duty to defend. If no otherinsurer defends, "we" will do so.However, "we" will be entitled to the"insured's" rights against all thoseother insurers.

2) "we" will pay "our" share of theamount of loss, if any, that exceedsthe sum of:a) the total amount that all such

other insurance would pay forthe loss in the absence of thisinsurance; and

b) the total of all deductibles andself-insured amounts requiredby such other insurance.

"We" will share the remaining losswith any other insurance that is notdescribed in this excess insuranceprovision and was not boughtspecifically to apply in excess of the"limits" shown on the "declarations"of this Commercial LiabilityCoverage.

3. Misrepresentation, Concealment, orFraud -- This coverage is void as to "you"and any other "insured" if, before or after aloss:

a. "you" or any "insured" has willfullyconcealed or misrepresented:

1) a material fact or circumstance thatrelates to this insurance or thesubject thereof; or

2) the "insured's" interest herein;

b. there has been fraud or false swearingby "you" or any other "insured" withregard to a matter that relates to thisinsurance or the subject thereof.

4. Motor Vehicle Financial ResponsibilityCertification -- When Commercial LiabilityCoverage is certified as proof of financialresponsibility for the future under theprovisions of any motor vehicle financialresponsibility law, the insurance provided for"bodily injury" liability or "property damage"liability will comply with the provisions of thelaw to the extent of the coverage and "limits"of insurance required by that law.

5. Premium -- If the premium for thisCommercial Liability Coverage is shown onthe "declarations" as a deposit premium,"we" will compute the final earned premiumat the end of each audit period shown on the"declarations". If it is more than the depositpremium paid by "you", "we" will bill "you" forthe difference. If the final earned premium isless than the deposit premium paid by "you","we" will return the difference to "you". "You"must maintain records of the information thatis necessary for computing the premium.Copies of the records must be sent to "us" atthe end of the audit period or whenrequested by "us".

6. Separate Insureds -- Coverage providedunder the Commercial Liability Coverageapplies separately to each "insured" againstwhom claim is made or suit is brought. Thisdoes not affect the "limits" stated under HowMuch We Pay.

7. Subrogation -- If "we" pay under theCommercial Liability Coverage, "we" mayrequire from an "insured" an assignment ofany right of recovery. "We" are not liableunder the Commercial Liability Coverage ifany "insured" has impaired "our" right torecover. An "insured" may waive the right torecover, in writing, before an "occurrence"takes place.

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8. Suit Against Us -- No suit may be broughtagainst "us" unless:

a. all the "terms" of the CommercialLiability Coverage have been compliedwith; and

b. the amount of the "insured's" liability hasbeen determined by:

1) a final judgment against an "insured"as a result of a trial; or

2) a written agreement by the"insured", the claimant, and "us".

No person has a right under the CommercialLiability Coverage to join "us" or implead "us"in actions that are brought to determine an"insured's" liability.

NUCLEAR ENERGY LIABILITYEXCLUSION

This insurance does not apply:

1. under any liability coverage, to "bodily injury"or "property damage":

a. with respect to which an "insured" underthe policy is also an "insured" under aNuclear Energy Liability policy issued byNuclear Energy Liability InsuranceAssociation, Mutual InsuranceAssociation, Mutual Atomic EnergyLiability Underwriters, Nuclear InsuranceAssociation of Canada, or any of theirsuccessors, or would be an "insured"under any such policy but for itstermination upon exhaustion of its "limit"of liability; or

b. resulting from the "hazardousproperties" of "nuclear material" and withrespect to which:

1) any person or organization isrequired to maintain financial

protection pursuant to the AtomicEnergy Act of 1954, or any lawamendatory thereto; or

2) the "insured" is, or had this policynot been issued would be, entitled toindemnity from the United States ofAmerica or any agency thereof,under any agreement entered intoby the United States of America orany agency thereof, with any personor organization.

2. under any Medical Payments coverage, toexpenses incurred with respect to "bodilyinjury" resulting from the "hazardousproperties" of "nuclear material" and arisingout of the operation of a "nuclear facility" byany person or organization.

3. under any liability coverage, to "bodily injury"or "property 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 dispersedtherefrom;

b. the "nuclear material" is contained in"spent fuel" or "waste" at any timepossessed, handled, used, stored,processed, transported, or disposed ofby or on behalf of an "insured"; or

c. the "bodily injury" or "property damage"arises out of the furnishing by an"insured" of services, materials, parts, orequipment in connection with theplanning, construction, maintenance,operation, or use of any "nuclear facility",but if such facility is located within theUnited States of America, its territoriesor possessions, or Canada, thisexclusion (c.) applies only to "propertydamage" to such "nuclear facility" andany property thereat.

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DEFINITIONS

The following definitions apply to the NuclearEnergy Liability Exclusion:

1. "Hazardous Properties" include radioactive,toxic, or explosive properties.

2. "Nuclear Material" means "source material","special nuclear material", or "by-productmaterial".

3. "Source Material", "Special NuclearMaterial", "By-product Material" have themeanings given them in the Atomic EnergyAct of 1954, or in any law amendatorythereof.

4. "Spent Fuel" means any fuel element or fuelcomponent, solid or liquid, which has beenused or exposed to radiation in a "nuclearreactor".

5. "Waste" means any "waste" material:

a. containing "by-product material" otherthan the tailings or "wastes" produced bythe extraction or concentration ofuranium or thorium from any oreprocessed primarily for its "sourcematerial" content; and

b. resulting from the operation by anyperson or organization of any "nuclearfacility" included under the first twoparagraphs of the definition of "nuclearfacility".

6. "Nuclear Facility" means:

a. any "nuclear reactor";

b. any equipment or device designed orused for:

1) separating the isotopes of uraniumor plutonium;

2) processing or utilizing "spent fuel";or

3) handling, processing, or packaging"waste";

c. any equipment or device used for theprocessing, fabricating, or alloying of"special nuclear material" if at any timethe total amount of such material in thecustody of the "insured" at the premiseswhere such equipment or device islocated consists of or contains morethan 25 grams of plutonium or uranium-223 or any combination thereof, or morethan 250 grams of uranium-235; or

d. any structure, basin, excavation,premises, or place prepared or used forthe storage or disposal of "waste";

and includes the site on which any of theforegoing is located, all operationsconducted on such sites, and all premisesused for such operations.

7. "Nuclear Reactor" means any apparatusdesigned or used:

a. to sustain nuclear fission in a self-supporting chain reaction; or

b. to contain a critical mass of fissionablematerial.

8. "Property Damage" includes all forms ofradioactive contamination of property.

GL-610 Ed 2.0Copyright MCMXCIVAmerican Association of Insurance Services

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