# Coverage A - Liability

## Coverage B - Property Damage Liability

The company will pay on behalf of the insured all sums which the insured shall become legally obligated to pay as damages because of:

A. bodily injury or

B. property damage

to which this insurance applies, caused by an occurrence, and the company shall have the right and duty to defend any suit against the insured seeking damages on account of such bodily injury or property damage, even if any of the allegations therein are groundless, false, or fraudulent, and may make such investigation and settlement of any claim or suit as it deems expedient but the company shall not be liable for the amount of any such settlement or payment unless and until the applicable limit of the company's liability has been exhausted by payment of judgments or settlements.

### Exclusions

This insurance does not apply:

(a) to liability assumed by the insured under any contract or agreement except an incidentals contract; but this exclusion does not apply to a warranty of title or quality of goods or services furnished or supplied by the named insured that is performed by or on behalf of the named insured will be done in a workmanlike manner;

(b) to bodily injury or property damage arising out of the ownership, maintenance, operation, use, loading or unloading of:

(1) any aircraft owned or operated by or rented to any insured, or

(2) any other vehicle or aircraft operated by any person in the course of his employment by any insured;

but this exclusion does not apply to the parking of an automobile on premises owned or controlled by the named insured, if such automobile is immediately adjoining, if such automobile is not owned by or rented or loaned to any insured;

(c) to bodily injury or property damage arising out of (1) the ownership, maintenance, operation, use, loading or unloading of any mobile equipment while being used in any pleasure or organized racing, speed or demolition contest, or in any exhibition, demonstration, practical test, or competitive contest or activity or (2) the operation or use of any snowmobile or trailer designed primarily for use on snow;

(d) to bodily injury or property damage arising out of and in the course of the transportation of mobile equipment by an automobile owned or operated by or rented to or controlled by the named insured;

(e) to bodily injury or property damage arising out of the ownership, maintenance, operation, use, loading or unloading of:

(1) any other watercraft operated by any person in the course of his employment by any insured; or

(2) any other watercraft operated by any person in the course of his employment by any person other than an employee of the named insured or organization described in paragraph (b) of this section, provided that no person or organization shall be an insured under this paragraph (e) with respect to the operation of such watercraft;

(f) to bodily injury or property damage due to war, whether or not declared, civil war, insurrection, rebellion or revolution or to any act or condition incident thereto;

(g) to liability assumed by the insured under an incidentals contract, or

(h) expenses for first aid under the Supplementary Payments provision;

(i) to bodily injury or property damage for which the insured or his indemnitee may be held liable:

(1) as a person or organization engaged in the business of manufacturing, distributing, selling or serving alcoholic beverages, or

(2) if not so engaged, as an owner or lessor of premises used for such purpose, if such liability is imposed:

(i) by, or because of the violation of, any statute, ordinance or regulation pertaining to the sale, gift, distribution or use of any alcoholic beverage, or

(ii) by reason of the selling, serving or giving of any alcoholic beverage to a minor or to a person under the influence of alcohol or which causes or contributes to the death or injury of any person;

but part (ii) of this exclusion does not apply with respect to liability of the insured or his indemnitee as an owner or lessor described in (2) above;

(j) to any obligation for which the insured or any carrier as his insurer may be held liable under any workers' compensation law, or any similar law providing for compensation or disability benefits law, or under any similar law;

(k) to bodily injury or property damage resulting from or out of and in the course of his employment by the insured or to any obligation of the insured to indemnify another because of damages arising out of such injury; but this exclusion does not apply to liability assumed by the insured under an incidentals contract;

(l) to property damage to:

(1) property occupied by or rented to the insured,

(2) property used by the insured, or

(3) property in the care, custody or control of the insured or as to which the named insured has an interest, except as provided in sub-paragraphs (2) and (3) of this exclusion do not apply with respect to liability under an incidentals contract relating to sub-paragraph (3) of this exclusion does not apply with respect to property damage (other than elevators) arising out of the use of an elevator at premises owned by, rented by or controlled by the named insured;

(m) to property damage to premises alienated by the named insured arising out of such premises or any part thereof;

(n) to loss of use of tangible property which has not been physically injured or destroyed, including:

(1) a delay in or lack of performance by or on behalf of the named insured of any contract or agreement, or

(2) the failure of the named insured's products or work performed by or on behalf of the named insured to meet the level of performance, quality, fitness, or durability required by the contract or agreement, but this exclusion does not apply to loss of use of other tangible property resulting from or out of an accident, physical injury to or destruction of the named insured's products or work performed by or on behalf of the named insured after such products or work have been put to use by any person or organization other than an insured;

(o) to property damage to work performed by or on behalf of the named insured arising out of the work or any portion thereof, or out of materials, parts or equipment used in connection with the work;

(p) to damages claimed for the withdrawal, inspection, repair, replacement, or loss of use of the named insured's products or work completed by or for the named insured, or any part thereof, or to the use of any part thereof, if such products, work or property are withdrawn from the market or from service because of any defect or suspected defect or deficiency therein;

(q) to property damage included within:

(1) the explosion hazard in connection with operations identified in this policy by a classification code number which includes the symbol "e";

(2) the collapse hazard in connection with operations identified in this policy by a classification code number which includes the symbol "c";

(3) the fire hazard in connection with operations identified in this policy by a classification code number which includes the symbol "u".

### Persons Insured

Each of the following is an insured under this insurance to the extent set forth below:

(a) if the named insured is designated in the declarations as an individual, the person so designated but only with respect to the conduct of a business of which he is the sole proprietor, the spouse of the named insured with whom he resides, or a business auxiliary;

(b) if the named insured is designated in the declarations as a partnership or joint venture, the partnership or joint ventures so designated and any partner or joint venturer thereof;

(c) if the named insured is designated in the declarations as other than an individual, partnership or joint venture, the organization so designated and any executive officer or stockholder thereof while acting within the scope of his duties as such;

(d) any person other than an employee of the named insured or organization described in paragraph (b) of this section, provided that no person or organization shall be an insured under this paragraph (d) with respect to the operation of any mobile equipment registered in the name of the named insured or any other equipment registered in the name of any other person;

(e) any other person while operating with the permission of the named insured such equipment registered in the name of the named insured or any other equipment registered in the name of any other person, provided that there is no other valid and collectible insurance available, either on a primary or excess basis, with respect to such operation;

### Limits of Liability

Regulations governing the number of (1) insureds under this policy, (2) persons or organizations sustaining bodily injury or property damage, or (3) claims made or suits brought, in respect of each bodily injury or property damage, the company's liability is as follows:

**Coverage A:** The total liability of the company for all damages, including damages for death or bodily injury sustained, because of bodily injury sustained by one or more persons as the result of any one occurrence, shall not exceed the limit of property damage liability stated in the schedule as applicable to "each occurrence."

**Coverage B:** The total liability of the company for all damages because of bodily injury liability stated in the schedule as applicable to "each occurrence."

Subject to the limits provided under "each occurrence," the total liability of the company for all damages because of all property damage to which this coverage applies, including the aggregate of all property damage included in the completed operations hazard and (2) all bodily injury included within the products hazard and (3) all bodily injury included within the completed operations hazard, shall not exceed the limit of property damage liability stated in the schedule as "aggregate."

(1) Property damage arising out of premises or operations rated on a premiumization basis or contractor's equipment rated on a receipts basis, or property damage for which liability is assumed under any incidentals contract relating to premises or operations, shall not include property damage included in subparagraph (2) below.

(2) Property damage arising out of premises or operations in the course of operations performed for the named insured by independent contractors and general supervision thereof by the named insured, including any such property damage for which liability is assumed under any incidentals contract relating to such operations, but this subparagraph (2) does not include property damage arising out of repairs or repairs of structures owned by or rented to the named insured or structures owned by others which do not involve changing the size of or moving buildings or other structures.

(3) All property damage included within the products hazard and all property damage included within the completed operations hazard, except as provided in subparagraphs (1), (2) and (3) above, and under subparagraphs (1) and (2), separately with respect to each project away from premises owned by or rented by the named insured.

**Coverage A and B:** For the purpose of determining the limit of the company's liability, all bodily injury and property damage arising out of continuous or repeated exposure to hazards of the same general conditions shall be considered as arising out of one occurrence.

### Policy Territory

This insurance applies only to bodily injury or property damage which occurs within the policy territory.