**AD. "Ultimate Net Loss" means the total sum which the Insured shall become obligated to pay for Damages on account of Personal Injury, Property Damage and/or Advertising Liability which is, and/or but for the amount thereof would be, covered under this Policy less any salvages or recoveries.**

**AE. "Waste" means all waste and includes, without limitation, materials to be discarded, stored pending final disposal, recycled, reconditioned or reclaimed.**

**AF. "Watercraft" means any ship or vessel of whatever type, including, but not limited to, cargo vessels, passenger vessels, other vessels used for transport, towboats and barges, vessels used in the construction of pipelines, platforms or other facilities, storage vessels, tanker vessels, drill ships, drilling rigs and barges (including, without limitation, submersible drill rigs and barges, semi-submersible drill rigs and barges and self-elevating drill rigs and barges) and all other vessels of whatever nature and description, all whether or not self-propelled. Watercraft shall not include an offshore oil or gas platform secured in place for drilling or producing operations.**

### IV EXCLUSIONS

This Policy does not apply to actual or alleged:

**A. PRIOR TO INCEPTION OR RETROACTIVE COVERAGE DATE**

Personal Injury to any individual person, Property Damage to any specific property or Advertising Liability which takes place prior to the Inception Date or, if applicable, the Retroactive Coverage Date.

**B. WORKERS' COMPENSATION, ETC.**

Liability in respect of any obligation for which the Insured or any company as its insurer may be liable under any workers' compensation, unemployment compensation or disability benefits law; provided, however, that this Exclusion B does not apply to liability of others assumed by the Insured under contract or agreement or to liability arising under the Federal Employers Liability Act, the Jones Act or, in the case of any Insured which is an authorized self-insured, the Longshoremen's and Harbor Workers' Compensation Act.