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HomeMy WebLinkAboutCGL 001C 07-14 CGL Coverage Part - Claims Made WCC Washington Casualty Company CGL 001C 07/14 Page 1 Includes copyrighted material of Insurance Services Office, Inc., with its permission COMMERCIAL GENERAL LIABILITY COVERAGE PART CLAIMS MADE COVERAGE FORM Throughout this Coverage Part the words YOU and YOUR refer to the INSURED as defined in Section II. Definition of Insured. The words WE, US and OUR refer to the insurer named on the DECLARATIONS. Capitalized words and phrases have special meaning as defined in this Coverage Part or in the Common Policy Terms. This Coverage Part is issued in return for the payment of premium and is subject to the DECLARATIONS and to all of the terms, conditions, definitions and exclusions stated in this Coverage Part and in the Common Policy Terms. Read the entire POLICY carefully to determine YOUR rights and duties and what is and is not covered. IMPORTANT NOTICE COVERAGES A AND B PROVIDE CLAIMS MADE COVERAGE. Coverage A and B applies only to CLAIMS first made against the INSURED and reported to US during the POLICY PERIOD arising out of INCIDENTS taking place on or after the RETROACTIVE DATE stated in the DECLARATIONS. Please review this Coverage Part carefully and discuss the coverage with YOUR insurance agent. Section I. Commercial General Liability Insuring Agreements A. Coverage A. Bodily Injury and Property Damage Liability 1. WE will pay on YOUR behalf those sums which YOU become legally obligated to pay as DAMAGES, up to the applicable Limits of Liability stated in the DECLARATIONS, because of a CLAIM for BODILY INJURY or PROPERTY DAMAGE caused by an INCIDENT to which this Coverage Part applies. WE shall have the right and duty to defend any SUIT brought against YOU seeking DAMAGES that are covered by Coverage A as further set forth in and subject to Section IV. Defense, Settlement and Claim Expenses. This coverage applies to BODILY INJURY or PROPERTY DAMAGE caused by an INCIDENT only if: a. The BODILY INJURY or PROPERTY DAMAGE did not occur before the RETROACTIVE DATE or after the end of the POLICY PERIOD; b. A CLAIM for DAMAGES because of the BODILY INJURY or PROPERTY DAMAGE is first made against YOU and reported to US in writing during the POLICY PERIOD or any EXTENDED REPORTING PERIOD, if applicable; and c. The BODILY INJURY or PROPERTY DAMAGE is caused by an INCIDENT that takes place in the Coverage Territory set forth in Section V. Coverage Territory and any SUIT for DAMAGES covered by Coverage A is brought within that Coverage Territory. 2. DAMAGES because of BODILY INJURY include DAMAGES claimed by any person or organization for care, loss of services or death resulting at any time from the BODILY INJURY. Washington Casualty Company CGL 001C 07/14 Page 2 Includes copyrighted material of Insurance Services Office, Inc., with its permission B. Coverage B. Personal and Advertising Injury Liability 1. WE will pay on YOUR behalf those sums which YOU become legally obligated to pay as DAMAGES, up to the applicable Limits of Liability stated in the DECLARATIONS, because of a CLAIM for PERSONAL AND ADVERTISING INJURY to which Coverage B applies. WE shall have the right and duty to defend any SUIT brought against YOU seeking DAMAGES that are covered by Coverage B as further set forth in and subject to Section IV. Defense, Settlement and Claim Expenses. 2. This coverage applies only to PERSONAL AND ADVERTISING INJURY caused by an OFFENSE arising out of a NAMED INSURED’S business, but only if: a. The OFFENSE is committed on or after the RETROACTIVE DATE and before the end of the POLICY PERIOD; b. A CLAIM for DAMAGES because of the PERSONAL AND ADVERTISING INJURY is first made against YOU and reported to US in writing during the POLICY PERIOD or any EXTENDED REPORTING PERIOD, if applicable; and c. The OFFENSE was committed in the Coverage Territory set forth in Section V. Coverage Territory and any SUIT for DAMAGES covered by Coverage B is brought within that Coverage Territory. C. Coverage C. Medical Payments 1. WE will pay medical expenses as described below for BODILY INJURY caused by an accident: a. On premises a NAMED INSURED owns or rents; b. On ways next to premises a NAMED INSURED owns or rents; or c. Because of a NAMED INSURED’S operations. However, WE will not pay any medical expenses for services provided by any INSURED or by any person or entity under contract with any INSURED to provide services. This coverage applies only if: a. The accident takes place during the POLICY PERIOD; b. The expenses are incurred and reported to US within one year of the date of the accident; and c. The injured person submits to examination, at OUR expense, by physicians of OUR choice as often as WE reasonably require, and provides those records and information that WE reasonably request. 2. WE will make these payments regardless of fault. These payments will not exceed the applicable limit of insurance stated in the DECLARATIONS. WE will pay reasonable expenses for: a. First aid administered at the time of an accident; b. Necessary medical, surgical, X-ray and dental services, including prosthetic devices; and c. Necessary ambulance, hospital, professional nursing and funeral services. D. Reporting A Claim, Incident or Offense Under Coverages A and B 1. As a condition precedent to OUR obligations under this Coverage Part, YOU must give written notice to US of any CLAIM made against YOU as soon as practicable and during the POLICY PERIOD or any applicable EXTENDED REPORTING PERIOD. Washington Casualty Company CGL 001C 07/14 Page 3 Includes copyrighted material of Insurance Services Office, Inc., with its permission 2. If during the POLICY PERIOD an INSURED becomes aware of any actual or alleged INCIDENT, OFFENSE or circumstances that may reasonably be expected to give rise to a CLAIM for DAMAGES potentially covered by this Coverage Part and gives written notice to US of such INCIDENT, OFFENSE or circumstances, then any CLAIMS subsequently made and reported to US as soon as practicable that are based upon or result from such INCIDENT, OFFENSE or circumstances shall be considered first made and reported to US during the POLICY PERIOD. 3. The following shall not be considered notice of a CLAIM, INCIDENT, OFFENSE or circumstance: a. Reports made to US orally by or on behalf of any INSURED; b. Reports, documents or surveys authored by or furnished to US in connection with any engineering, loss control, risk management, quality assurance services or any application for insurance; or c. Notice given to any attorney retained or paid by US to defend YOU in any CLAIM or SUIT. E. Reporting Period Option For Coverages A and B If either WE or the FIRST NAMED INSURED cancels or non-renews this Coverage Part, the FIRST NAMED INSURED shall have the right to have issued an endorsement providing an indefinite EXTENDED REPORTING PERIOD during which CLAIMS otherwise covered by this Coverage Part may be first made against YOU and reported to US, if the FIRST NAMED INSURED: 1. Gives US written notice within thirty (30) days after such cancellation or non-renewal; and 2. Pays to US all premiums due for the POLICY, if any, and for the EXTENDED REPORTING PERIOD as established by OUR rules, rates and rating plans then in effect. Payment of any premium due for the POLICY and payment of the premium for the EXTENDED REPORTING PERIOD shall be made when due as invoiced by US, or the EXTENDED REPORTING PERIOD will terminate and not be reinstated. The EXTENDED REPORTING PERIOD applies only to BODILY INJURY, PROPERTY DAMAGE and OFFENSES that take place on or after the RETROACTIVE DATE stated in the DECLARATIONS and prior to the cancellation or non-renewal of this Coverage Part. The applicable Limits of Liability stated in the DECLARATIONS at the time this Coverage Part is cancelled or non-renewed shall, subject to any endorsements providing for a deductible, be the limits of liability for all CLAIMS first made against any INSURED and reported to US during the EXTENDED REPORTING PERIOD; however, the Aggregate Limit of Liability in the DECLARATIONS applies separately to the EXTENDED REPORTING PERIOD. Section II. Definition of Insured A. The following are INSUREDS under this Coverage Part: 1. The FIRST NAMED INSURED, any NAMED INSUREDS and any entity or person listed in the Schedule of Insureds attached to this Coverage Part. 2. If the NAMED INSURED is: a. A partnership or joint venture, the NAMED INSURED’S partners are also INSUREDS, but only with respect to the conduct of the NAMED INSURED’S business. b. A limited liability company, the NAMED INSURED’S members are also INSUREDS, but only with respect to the conduct of the NAMED INSURED’S business. The NAMED INSURED’S managers are INSUREDS, but only with respect to their duties as the NAMED INSURED’S managers. Washington Casualty Company CGL 001C 07/14 Page 4 Includes copyrighted material of Insurance Services Office, Inc., with its permission c. An organization other than a partnership, joint venture or limited liability company, the NAMED INSURED’S EXECUTIVE OFFICERS and directors are INSUREDS, but only with respect to their duties as the NAMED INSURED’S officers or directors. The NAMED INSURED’S stockholders are also INSUREDS, but only with respect to their liability as stockholders of the NAMED INSURED. d. A trust, the NAMED INSURED’S trustees are also INSUREDS, but only with respect to their duties as trustees. B. Each of the following is also an INSURED under this Coverage Part: 1. The NAMED INSURED’S VOLUNTEERS only while performing duties related to the conduct of that NAMED INSURED’S business, and a NAMED INSURED’S EMPLOYEES, other than a NAMED INSURED’S EXECUTIVE OFFICERS (if the NAMED INSURED is an organization other than a partnership, joint venture or limited liability company) or a NAMED INSURED’S managers (if the NAMED INSURED is a limited liability company), but only for acts within the scope of their employment by that NAMED INSURED or while performing duties related to the conduct of that NAMED INSURED’S business. However, none of these EMPLOYEES or VOLUNTEERS are INSUREDS for: a. BODILY INJURY or PERSONAL AND ADVERTISING INJURY: i. To a NAMED INSURED, to a NAMED INSURED’S partners or members (if the NAMED INSURED is a partnership or joint venture), to a NAMED INSURED’S members (if the NAMED INSURED is 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 a NAMED INSURED’S business, or to a NAMED INSURED’S other VOLUNTEERS while performing duties related to the conduct of that NAMED INSURED’S business; ii. To the spouse, child, parent, brother or sister of that co-EMPLOYEE or VOLUNTEER as a consequence of paragraph a.i. above; or iii. For which there is any obligation to share DAMAGES with or repay someone else who must pay DAMAGES because of any injury described in paragraph a.i. or a.ii. above. b. PROPERTY DAMAGE to property: i. Owned, occupied or used by; or ii. Rented to, in the care, custody or control of, or over which physical control is being exercised for any purpose by the NAMED INSURED, any of a NAMED INSURED’S EMPLOYEES, VOLUNTEERS, any partner or member of a NAMED INSURED (if the NAMED INSURED is a partnership or joint venture), or any member of a NAMED INSURED (if the NAMED INSURED is a limited liability company). 2. Any person (other than a NAMED INSURED’S EMPLOYEE or VOLUNTEER), or any organization while acting as that NAMED INSURED’S real estate manager. 3. Any person or organization having proper temporary custody of a NAMED INSURED’S property if the NAMED INSURED dies, but only: a. With respect to liability arising out of the maintenance or use of that property; and b. Until the NAMED INSURED’S legal representative has been appointed. Washington Casualty Company CGL 001C 07/14 Page 5 Includes copyrighted material of Insurance Services Office, Inc., with its permission C. Any subsidiary or affiliated company created or acquired by the NAMED INSURED, after the effective date of this POLICY will qualify as a NAMED INSURED under this Coverage Part if there is no other similar insurance available to that organization. However, this coverage under this provision only applies: 1. If the NAMED INSURED acquires and maintains an ownership interest in such organization of 51% or more; 2. For Coverage A, to BODILY INJURY or PROPERTY DAMAGE that occurred after the NAMED INSURED acquired or formed the affiliate or subsidiary; and 3. For Coverage B, to an OFFENSE committed after the NAMED INSURED acquired or formed the affiliate or subsidiary. Such affiliate or subsidiary shall be an INSURED for not more than ninety (90) days after its creation or acquisition by the NAMED INSURED or until the end of the POLICY PERIOD, whichever is earlier, and only if during that time the FIRST NAMED INSURED: 1. Gives US written notice of such creation or acquisition; 2. Provides US all information WE request; 3. Obtains OUR written consent to cover such affiliate or subsidiary under this Coverage Part; and 4. Pays any additional premium required by US (including such additional premium as may be required for the period commencing upon such creation or acquisition). D. Any person or entity who was an INSURED, as defined in paragraphs A.2. or B. above, at the time that the INCIDENT took place. Section III. Our Limit of Liability A. The Limits of Liability shown in the DECLARATIONS and the rules below fix the most WE will pay under this Coverage Part regardless of the number of INSUREDS, CLAIMS made or SUITS brought, or persons or organizations making CLAIMS or bringing SUITS. B. The General Aggregate Limit is the most WE will pay for the sum of: 1. Medical expenses under Coverage C; 2. DAMAGES under Coverage A, except DAMAGES because of BODILY INJURY or PROPERTY DAMAGE included in the PRODUCTS-COMPLETED OPERATIONS HAZARD; and 3. DAMAGES under Coverage B. C. The Products-Completed Operations Aggregate Limit is the most WE will pay under Coverage A for DAMAGES because of BODILY INJURY and PROPERTY DAMAGE included in the PRODUCTS- COMPLETED OPERATIONS HAZARD. D. Subject to paragraph B. above, the Personal and Advertising Injury Limit is the most WE will pay under Coverage B for the sum of all DAMAGES because of all PERSONAL AND ADVERTISING INJURY sustained by any one person or organization. All CLAIMS arising out of PERSONAL AND ADVERTSING INJURY to the same person or organization that are first made against any INSURED during the policy period of more than one policy or coverage part or during any applicable EXTENDED REPORTING PERIOD issued by US or any of OUR affiliated companies, will be deemed to have been made at the time the first of those CLAIMS is made against any INSURED and shall be subject to a single Personal and Advertising Limit of Liability of the first such policy, coverage part or EXTENDED REPORTING PERIOD when the first such CLAIM is first made. E. Subject to paragraph B. or C. above, whichever applies, the Each Incident Limit is the most WE will pay for the sum of: Washington Casualty Company CGL 001C 07/14 Page 6 Includes copyrighted material of Insurance Services Office, Inc., with its permission 1. DAMAGES under Coverage A; and 2. Medical expenses under Coverage C because of all BODILY INJURY and PROPERTY DAMAGE arising out of any one INCIDENT or multiple related INCIDENTS. Regardless of the number of CLAIMS made, the number of persons injured or persons asserting CLAIMS (including without limitation CLAIMS for loss of consortium, society or services or death), the number of INCIDENTS, the number of properties damaged, the number of INSUREDS involved or the number or nature of any INJURIES, multiple INCIDENTS shall be deemed to be related if they arise out of, directly or indirectly result from, or in any way involve or share one or more of the same or related acts, errors, omissions, facts, circumstances, transactions, events, advice, decisions or exposure to the same general conditions or arise from or involve BODILY INJURY to the same person or PROPERTY DAMAGE causing DAMAGES to the same person or organization. Regardless of the number of CLAIMS made, the number of persons injured or persons asserting CLAIMS (including without limitation CLAIMS for loss of consortium, society or services or death), the number of INCIDENTS, the number of properties damaged, the number of INSUREDS involved or the number or nature of any INJURIES, in no event shall more than one Each Incident Limit of Liability of this Coverage Part or the Each Incident limit of liability of more than one policy or coverage part or any applicable EXTENDED REPORTING PERIOD issued by US or any of OUR affiliated insurance companies apply to any one INCIDENT or multiple related INCIDENTS. If multiple CLAIMS arising out of any one INCIDENT or multiple related INCIDENTS are first made during the policy period of more than one policy or coverage part or during any applicable EXTENDED REPORTING PERIOD issued by US or any of OUR affiliated companies, then all such CLAIMS will be deemed to have been made at the time the first of those CLAIMS is made against any INSURED and shall be subject to a single Each Incident Limit of Liability of the first such policy or coverage part or EXTENDED REPORTING PERIOD when the first such CLAIM is first made. F. Subject to paragraphs B. and E. above, the Damage To Premises Rented To The Named Insured Limit is the most WE will pay under Coverage A for DAMAGES because of PROPERTY DAMAGE to any one premises, while rented to a NAMED INSURED, or in the case of damage by fire, while rented to a NAMED INSURED or temporarily occupied by a NAMED INSURED with permission of the owner. G. Subject to paragraphs B. and E. above, the Medical Expense Limit is the most WE will pay under Coverage C for all medical expenses because of BODILY INJURY sustained by any one person. Section IV. Defense, Settlement and Claim Expenses In addition to those provisions found in Section I. Defense, Settlement and Claim Expenses of the Common Policy Terms, the following provisions apply to this Coverage Part: A. Subject to Section V. Coverage Territory below, WE shall have the right and duty to defend, with defense counsel selected by US, any SUIT brought against an INSURED seeking DAMAGES that are covered by this Coverage Part even if any of the allegations of the SUIT are groundless, false or fraudulent, and WE may make any investigation and settlement of any INCIDENT, CLAIM or SUIT as WE deem expedient. WE may also pay all or any portion of any judgment against YOU even if such payment does not settle the CLAIM against YOU and YOUR appellate rights have not been exhausted. B. WE will pay, with respect to any CLAIM WE investigate or settle, or any SUIT against an INSURED that WE defend under this Coverage Part, CLAIM EXPENSES in addition to the applicable Limit of Liability. CLAIM EXPENSES mean only the following: 1. Defense costs and expenses, incurred by US with respect to any SUIT against the YOU that WE defend, all court costs taxed against YOU in any SUIT seeking DAMAGES covered by this Coverage Part and post-judgment interest on that portion of any judgment covered by this Washington Casualty Company CGL 001C 07/14 Page 7 Includes copyrighted material of Insurance Services Office, Inc., with its permission Coverage Part which does not exceed the applicable Limit of Liability and that accrues through the date that WE pay, offer to pay or deposit into court that portion of such judgment. However, CLAIMS EXPENSES do not include any form of prejudgment interest or attorneys' fees or attorneys' expenses taxed or awarded against YOU; 2. Premiums on bonds to release attachments in SUITS WE defend for an amount not in excess of the applicable Limit of Liability and premiums on appeal bonds with respect to that portion of any judgment covered by this Coverage Part not exceeding the applicable Limit of Liability of this Coverage Part. WE do not have to furnish or obtain these bonds. 3. All reasonable out-of-pocket expenses incurred by YOU at OUR request in assisting US in the investigation or defense of any CLAIM or SUIT, including actual loss of earnings, to a maximum of $500 for each INSURED per day, but only if such loss of earnings is not payable under any OTHER INSURANCE. 4. Up to $250 for the cost of bail bonds required because of accidents or traffic law violations arising out of the use of any vehicle to which the Bodily Injury Liability Coverage applies. WE do not have to furnish these bonds. C. YOU may not incur any CLAIMS EXPENSES nor make any settlements or assume any obligation without OUR prior written consent. D. If WE defend an INSURED against a SUIT and an indemnitee of the INSURED is also named as a party to the SUIT, WE will defend that indemnitee if all of the following conditions are met: 1. The SUIT against the indemnitee seeks DAMAGES for which the INSURED has assumed the liability of the indemnitee in a contract or agreement that is an INSURED CONTRACT; 2. This Coverage Part applies to such liability assumed by the INSURED; 3. The obligation to defend, or the cost of the defense of, that indemnitee has also been assumed by the INSURED in the same INSURED CONTRACT; 4. The allegations in the SUIT and the information WE know about the INCIDENT are such that no conflict appears to exist between the interests of the INSURED and the interests of the indemnitee; 5. The indemnitee and the INSURED ask US to conduct and control the defense of that indemnitee against such SUIT and agree that WE can assign the same counsel to defend the INSURED and the indemnitee; and 6. The indemnitee: a. Agrees in writing to: i. Cooperate with US in the investigation, settlement or defense of the SUIT; ii. Immediately send US copies of any demands, notices, summonses or legal papers received in connection with the SUIT; iii. Notify any other insurer whose coverage is available to the indemnitee; and iv. Cooperate with US with respect to coordinating OTHER INSURANCE available to the indemnitee; and b. Provides US with written authorization to: i. Obtain records and other information related to the SUIT; and ii. Conduct and control the defense of the indemnitee in such SUIT. Washington Casualty Company CGL 001C 07/14 Page 8 Includes copyrighted material of Insurance Services Office, Inc., with its permission So long as the above conditions are met, attorneys' fees incurred by US in the defense of that indemnitee, necessary litigation expenses incurred by US and necessary litigation expenses incurred by the indemnitee at OUR request will be paid as CLAIMS EXPENSES. Notwithstanding the provisions of paragraph A.2.b. of Section VI. Exclusions, such payments will not be deemed to be DAMAGES for BODILY INJURY and PROPERTY DAMAGE and will not reduce the Limits of Liability applicable to this Coverage Part. OUR obligation to defend an INSURED'S indemnitee and to pay for attorneys' fees and necessary litigation expenses as CLAIM EXPENSES ends when WE have used up the applicable Limit of Liability in the payment of judgments or settlements or the conditions set forth above, or the terms of the agreement described in paragraph 6. above, are no longer met. Section V. Coverage Territory This Coverage Part applies to an INCIDENT that causes BODILY INJURY or PROPERTY DAMAGE or an OFFENSE only if the INCIDENT or OFFENSE occurs in: A. The United States of America (including its territories and possessions), Puerto Rico or Canada; B. International waters or airspace, but only if the injury or damage occurs in the course of travel or transportation between any places included in paragraph A. above; or C. All other parts of the world if the injury or damage arises out of: 1. Goods or products made or sold by a NAMED INSURED in the territory described in paragraph A. above; 2. The activities of a person whose home is in the territory described in paragraph A. above, but is away for a short time on a NAMED INSURED’S business; or 3. OFFENSES that take place through the Internet or similar electronic means of communication provided the INSURED'S responsibility to pay DAMAGES is determined in a SUIT on the merits brought and maintained in the territory described in paragraph A. above or in a settlement WE agree to in writing. Section VI. Exclusions In addition to those exclusions found in Section II. Exclusions of the Common Policy Terms, the following exclusions apply to this Coverage Part: A. The insurance provided by Coverage A of this Coverage Part does not apply to: 1. Aircraft, Auto or Watercraft BODILY INJURY or PROPERTY DAMAGE arising out of the ownership, maintenance, use or entrustment to others of any aircraft, AUTO or watercraft owned or operated by or rented or loaned to any INSURED. Use includes operation and LOADING OR UNLOADING. This exclusion applies even if the CLAIMS against any INSURED that allege negligence or other wrongdoing in the supervision, hiring, employment, training or monitoring of others by that INSURED, if the INCIDENT which caused the BODILY INJURY or PROPERTY DAMAGE involved the ownership, maintenance, use or entrustment to others of any aircraft, AUTO or watercraft that is owned or operated by or rented or loaned to any INSURED. This exclusion does not apply to: a. A watercraft while ashore on premises the NAMED INSURED owns or rents; b. A watercraft the NAMED INSURED does not own that is: Washington Casualty Company CGL 001C 07/14 Page 9 Includes copyrighted material of Insurance Services Office, Inc., with its permission i. Less than 26 feet long; and ii. Not being used to carry persons or property for a charge; c. Parking an AUTO on, or on the ways next to, premises the NAMED INSURED owns or rents, provided the AUTO is not owned by or rented or loaned to the NAMED INSURED or the INSURED; d. Liability assumed under any INSURED CONTRACT for the ownership, maintenance or use of aircraft or watercraft; or e. BODILY INJURY or PROPERTY DAMAGE arising out of: i. The operation of machinery or equipment that is attached to, or part of, a land vehicle that would qualify under the definition of MOBILE EQUIPMENT if it were not subject to a compulsory or financial responsibility law or other motor vehicle insurance law where it is licensed or principally garaged; or ii. The operation of any of the machinery or equipment listed in paragraph 6.b. or 6.c. of Section III. Defined Terms, paragraph T. MOBILE EQUIPMENT in the Common Policy Terms. 2. Contractual Liability BODILY INJURY or PROPERTY DAMAGE 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: a. That the INSURED would have in the absence of the contract or agreement; or b. Assumed in a contract or agreement that is an INSURED CONTRACT, provided the BODILY INJURY or PROPERTY DAMAGE occurs subsequent to the execution of the contract or agreement. Solely for the purposes of liability assumed in an INSURED CONTRACT, reasonable attorneys' fees and necessary litigation expenses incurred by or for a party other than an INSURED are deemed to be DAMAGES because of BODILY INJURY or PROPERTY DAMAGE, provided: i. Liability to such party for, or for the cost of, that party's defense has also been assumed in the same INSURED CONTRACT; and ii. Such attorneys' 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. 3. 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: a. A defect, deficiency, inadequacy or dangerous condition in YOUR PRODUCT or YOUR WORK; or b. A delay or failure by a NAMED INSURED or anyone acting on a NAMED INSURED’S 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. Washington Casualty Company CGL 001C 07/14 Page 10 Includes copyrighted material of Insurance Services Office, Inc., with its permission 4. Damage to Property PROPERTY DAMAGE to: a. Property a NAMED INSURED owns, rents, or occupies, including any costs or expenses incurred by a NAMED INSURED, 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; b. Premises a NAMED INSURED sells, gives away or abandons, if the PROPERTY DAMAGE arises out of any part of those premises; c. Property loaned to a NAMED INSURED; d. Personal property in the care, custody or control of the INSURED; e. That particular part of real property on which a NAMED INSURED or any contractors or subcontractors working directly or indirectly on a NAMED INSURED’S behalf are performing operations, if the PROPERTY DAMAGE arises out of those operations; or f. That particular part of any property that must be restored, repaired or replaced because YOUR WORK was incorrectly performed on it. Paragraphs a., c. and d. of this exclusion do not apply to PROPERTY DAMAGE (other than damage by fire) to premises, including the contents of such premises, rented to a NAMED INSURED for a period of seven or fewer consecutive days. A separate limit of insurance applies to Damage To Premises Rented To a Named Insured as described in Section III. Our Limit of Liability. Paragraph b. of this exclusion does not apply if the premises are YOUR WORK and were never occupied, rented or held for rental by a NAMED INSURED. Paragraphs c., d., e. and f. of this exclusion do not apply to liability assumed under a sidetrack agreement. Paragraph f. of this exclusion does not apply to PROPERTY DAMAGE included in the PRODUCTS-COMPLETED OPERATIONS HAZARD. 5. Damage to Your Product PROPERTY DAMAGE to YOUR PRODUCT arising out of it or any part of it. 6. Damage to Your Work PROPERTY DAMAGE to YOUR WORK arising out of it or any part of it and included in the PRODUCTS-COMPLETED OPERATIONS HAZARD. This exclusion does not apply if the damaged work or the work out of which the damage arises was performed on a NAMED INSURED’S behalf by a subcontractor. 7. 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. However, this exclusion does not apply to liability for DAMAGES because of BODILY INJURY. 8. Employer's Liability BODILY INJURY to: a. An EMPLOYEE of the INSURED arising out of and in the course of: Washington Casualty Company CGL 001C 07/14 Page 11 Includes copyrighted material of Insurance Services Office, Inc., with its permission i. Employment by the INSURED; or ii. Performing duties related to the conduct of the INSURED'S business; or b. The spouse, child, parent, brother or sister of that EMPLOYEE as a consequence of paragraph a. above. This exclusion applies whether 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 the injury. This exclusion does not apply to liability assumed by the INSURED under an INSURED CONTRACT. 9. 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 resulting from the use of reasonable force to protect persons or property. 10. Liquor Liability BODILY INJURY or PROPERTY DAMAGE for which any INSURED may be held liable by reason of: a. Causing or contributing to the intoxication of any person; b. The furnishing of alcoholic beverages to a person under the legal drinking age or under the influence of alcohol; or c. Any statute, ordinance or regulation relating to the sale, gift, distribution or use of alcoholic beverages. This exclusion applies even if the CLAIM against any INSURED alleges negligence or other wrongdoing in: a. The supervision, hiring, employment, training or monitoring of others by that INSURED; or b. Providing or failing to provide transportation with respect to any person that may be under the influence of alcohol if the INCIDENT which caused the BODILY INJURY or PROPERTY DAMAGE, involved that which is described in paragraphs a., b. or c. above. However, this exclusion applies only if a NAMED INSURED is in the business of manufacturing, distributing, selling, serving or furnishing alcoholic beverages. For the purposes of this exclusion, permitting a person to bring alcoholic beverages on a NAMED INSURED’S premises, for consumption on a NAMED INSURED’S premises, whether or not a fee is charged or a license is required for such activity, is not by itself considered the business of selling, serving or furnishing alcoholic beverages. 11. Mobile Equipment BODILY INJURY or PROPERTY DAMAGE arising out of: a. The transportation of MOBILE EQUIPMENT by an AUTO owned or operated by or rented or loaned to any INSURED; or b. The use of MOBILE EQUIPMENT in, or while in practice for, or while being prepared for, any prearranged racing, speed, demolition, or stunting activity. Washington Casualty Company CGL 001C 07/14 Page 12 Includes copyrighted material of Insurance Services Office, Inc., with its permission 12. Personal and Advertising Injury BODILY INJURY arising out of PERSONAL AND ADVERTISING INJURY. 13. Recall of Products, Work or Impaired Property DAMAGES claimed for any loss, cost or expense incurred by the NAMED INSURED or others for the loss of use, withdrawal, recall, inspection, repair, replacement, adjustment, removal or disposal of: a. YOUR PRODUCT; b. YOUR WORK; or c. 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. Exclusions A.1., 3., 4., 5., 6., 8., 10., 11. and 13. do not apply to damage by fire to premises while rented to a NAMED INSURED or temporarily occupied by a NAMED INSURED with permission of the owner. A separate limit of insurance applies to this coverage as described in Section III. Our Limit of Liability. B. The insurance provided by Coverage B of this Coverage Part does not apply to: 1. Breach of Contract PERSONAL AND ADVERTISING INJURY arising out of a breach of contract, except an implied contract to use another's advertising idea in a NAMED INSURED’S ADVERTISEMENT. 2. Contractual Liability PERSONAL AND ADVERTISING INJURY for which the INSURED has assumed 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. 3. Criminal Acts PERSONAL AND ADVERTISING INJURY arising out of a criminal act committed by or at the direction of the INSURED. 4. Electronic Chatrooms or Bulletin Boards PERSONAL AND ADVERTISING INJURY arising out of any information in electronic form on a website the INSURED hosts, owns, or over which the INSURED exercises control, including but not limited to words, sounds, numbers, images, graphics, advertising, video, streaming content, web-casting, online forum, bulletin board or chat room content. 5. Infringement of Copyright, Patent, Trademark or Trade Secret PERSONAL AND ADVERTISING INJURY arising out of the infringement of copyright, patent, trademark, trade secret or other intellectual property rights. Under this exclusion, such other intellectual property rights do not include the use of another's advertising idea in a NAMED INSURED’S ADVERTISEMENT. However, this exclusion does not apply to infringement, in a NAMED INSURED’S ADVERTISEMENT, of copyright, trade dress or slogan. 6. Insureds in Media and Internet Type Businesses PERSONAL AND ADVERTISING INJURY committed by an INSURED whose business is: Washington Casualty Company CGL 001C 07/14 Page 13 Includes copyrighted material of Insurance Services Office, Inc., with its permission a. Advertising, broadcasting, publishing or telecasting; b. Designing or determining content of web sites for others; or c. An Internet search, access, content or service provider. However, this exclusion does not apply to paragraphs X.1., 2. and 3. of the definition of PERSONAL AND ADVERTISING INJURY in Section III. Defined Terms of the Common Policy Terms. For the purposes of this exclusion, the placing of frames, borders or links, or advertising, for a NAMED INSURED or others anywhere on the Internet, is not by itself considered the business of advertising, broadcasting, publishing or telecasting. 7. Knowing Violation of Rights of Another 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 AND ADVERTISING INJURY. 8. Material Published with Knowledge of Falsity PERSONAL AND ADVERTISING INJURY arising out of oral or written publication, in any manner, of material, if done by or at the direction of the INSURED with knowledge of its falsity. 9. Material Published Prior to Retroactive Date PERSONAL AND ADVERTISING INJURY arising out of oral or written publication, in any manner, of material whose first publication took place before the RETROACTIVE DATE. 10. Quality or Performance of Goods – Failure to Conform to Statements PERSONAL AND ADVERTISING INJURY arising out of the failure of goods, products or services to conform to any statement of quality or performance made in a NAMED INSURED’S ADVERTISEMENT. 11. Unauthorized Use of Another's Name or Product PERSONAL AND ADVERTISING INJURY arising out of the unauthorized use of another's name or product in a NAMED INSURED'S e-mail address, domain name or metatag, or any other similar tactics to mislead another's potential customers. 12. Wrong Description of Prices PERSONAL AND ADVERTISING INJURY arising out of the wrong description of the price of goods, products or services stated in a NAMED INSURED’S ADVERTISEMENT. C. With respect to Coverage C, WE will not pay expenses for BODILY INJURY: 1. If the expenses are for services rendered by any INSURED. 2. To any INSURED, except a VOLUNTEER. 3. To a person hired to do work for or on behalf of any INSURED or a tenant of any INSURED. 4. To a person injured on that part of premises a NAMED INSURED owns or rents that the person normally occupies. 5. To a person injured while practicing, instructing or participating in any physical exercises or games, sports, or athletic contests. 6. Included within the PRODUCTS-COMPLETED OPERATIONS HAZARD. 7. Excluded under Coverage A. Washington Casualty Company CGL 001C 07/14 Page 14 Includes copyrighted material of Insurance Services Office, Inc., with its permission 8. To a person, whether or not an EMPLOYEE of any INSURED, if benefits for the BODILY INJURY are payable or must be provided under a worker’s compensation or disability benefits law or a similar law. D. With respect to Coverages A, B, and C, this Coverage Part does not apply to: 1. Access or Disclosure of Confidential or Personal Information and Data-Related Liability a. INJURY arising out of any actual or potential access to or disclosure of any person's or organization's confidential or personal information, including but not limited to patents, trade secrets, processing methods, customer lists, financial information, credit card information, health information or any other type of nonpublic information; or b. BODILY INJURY or PROPERTY DAMAGE arising out of any actual or potential loss of, loss of use of, damage to, corruption of, inability to access, or inability to manipulate ELECTRONIC DATA that does not result from physical injury to tangible property. This exclusion applies even if damages are claimed for notification costs, credit monitoring expenses, forensic expenses, public relations expenses or any other loss, cost or expense incurred by the NAMED INSURED or others arising out of that which is described in paragraphs a. or b. above. This exclusion does not apply to DAMAGES because of BODILY INJURY, unless paragraph a. above applies. 2. Other Coverage Parts INJURY or medical expenses that are covered under any other Coverage Part of this POLICY other than INJURY covered by Coverage B of an Excess Medical Professional & Umbrella Liability Coverage Part, if included in this POLICY. 3. Professional Services INJURY or medical expenses arising out of the performance or rendering or failure to render any PROFESSIONAL SERVICES as defined or any other professional services. 4. Recording and Distribution of Material or Information in Violation of Law INJURY arising directly or indirectly out of any action or omission that violates or is alleged to violate: a. The Telephone Consumer Protection Act (TCPA), including any amendment of or addition to such law; b. The CAN-SPAM Act of 2003, including any amendment of or addition to such law; c. The Fair Credit Reporting Act (FCRA), and any amendment of or addition to such law, including the Fair and Accurate Credit Transactions Act (FACTA); or d. Any federal, state or local statute, ordinance or regulation, other than the TCPA, CAN- SPAM Act of 2003 or 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. Section VII. Defined Terms The capitalized words and phrases used in this Coverage Part have special meaning. In addition to those defined terms found in Section III. Defined Terms of the Common Policy Terms, the following definition also applies to this Coverage Part: Washington Casualty Company CGL 001C 07/14 Page 15 Includes copyrighted material of Insurance Services Office, Inc., with its permission A. INSURED CONTRACT means: 1. A contract for a lease of premises. However, that portion of the contract for a lease of premises that indemnifies any person or organization for damage by fire to premises while rented to a NAMED INSURED or temporarily occupied by a NAMED INSURED with permission of the owner is not an INSURED CONTRACT; 2. A sidetrack agreement; 3. Any easement or license agreement, except in connection with construction or demolition operations on or within 50 feet of a railroad; 4. An obligation, as required by ordinance, to indemnify a municipality, except in connection with work for a municipality; 5. An elevator maintenance agreement; 6. That part of any other contract or agreement pertaining to a NAMED INSURED'S business (including an indemnification of a municipality in connection with work performed for a municipality) under which a NAMED INSURED assumes the tort liability of another party to pay for BODILY INJURY or PROPERTY DAMAGE to a third person or organization. Tort liability means a liability that would be imposed by law in the absence of any contract or agreement. Paragraph 6. does not include that part of any contract or agreement: a. That indemnifies a railroad for BODILY INJURY or PROPERTY DAMAGE arising out of construction or demolition operations, within 50 feet of any railroad property and affecting any railroad bridge or trestle, tracks, road-beds, tunnel, underpass or crossing; b. That indemnifies an architect, engineer or surveyor for injury or damage arising out of: i. Preparing, approving, or failing to prepare or approve, maps, shop drawings, opinions, reports, surveys, field orders, change orders or drawings and specifications; or ii. Giving directions or instructions, or failing to give them, if that is the primary cause of the injury or damage; or c. Under which an INSURED, if an architect, engineer or surveyor, assumes liability for an injury or damage arising out of the INSURED'S rendering or failure to render professional services, including those listed in b. above, and supervisory, inspection, architectural or engineering activities. Section VIII. Conditions The insurance provided by this Coverage Part is subject to the conditions included in Section IV. General Conditions of the Common Policy Terms. In witness whereof, WE have caused this POLICY to be executed and attested. Gregg L. Hanson Richard G. Hayes President & CEO Treasurer