environmental & pollution liability insurance for · delta eil cpel (07-17) page 3 of 27...

Environmental & Pollution Liability Insurance for Contractors

DeltaEILCPEL(07-17) Page1of27

CONTRACTORSPROFESSIONALENVIRONMENTALLIABILITYPOLICY

TABLEOFCONTENTS

ContentsSECTION1–INSURINGAGREEMENTS.........................................................................................................2

SECTION2–DEFENCEANDSETTLEMENT...................................................................................................4

SECTION3–EXCLUSIONS............................................................................................................................5

SECTION4–LIMITSOFLIABILITYANDEXCESS..........................................................................................10

SECTION5–CONDITIONS..........................................................................................................................11

SECTION6–DEFINITIONS..........................................................................................................................20


CONTRACTORSPROFESSIONALENVIRONMENTALLIABILITYPOLICY

Throughout thisPolicy thewords"you"and"your" refer to thenamed insured shown in theScheduleandanyotherpersonororganizationqualifyingasanamedinsuredunderthisPolicy.Thewords"we,""us"and"our"refertothecompanyprovidingthisinsurance.Except forheadings,words thatappear inboldprinthave specialmeaning.SeeSECTION6–DEFINITIONS.In consideration of the payment of the premium and in reliance upon the statements andinformationthatyouoryouragentprovidestousintheApplicationorQuestionnaire,orboth,or other information submitted to us that forms the basis of coverage,we agree to providecoverageasshownintheScheduleandsubjecttothetermsasfollows:SECTION1–INSURINGAGREEMENTS

1. ProfessionalLiability

a. ContractorProfessionalLiability

WewillpayuptotheSublimitofLiability listedin Item5oftheSchedule,exclusiveoftheExcess,defencecostsandthosesumsthattheinsuredbecomeslegallyobligatedtopayasprofessionaldamagesbecauseofaclaimresultingfromanactualorallegedact,errororomissioninprofessionalservices,provided:

(1) The claim arises out of professional services rendered on or after theprofessional liability retroactive date and prior to the expiration of thepolicyperiod;and

(2) Theclaim is firstmadeagainst the insured and first reported tous, inwriting,duringthepolicyperiodorwithintheextendedreportingperiod;and

(3) SuchclaimisnotcoveredunderSECTION1-INSURINGAGREEMENTS,paragraph2,ContractorsPollutionLiability.

b. MitigationExpense:

WewillpayuptotheSublimitofLiabilitylistedinItem5oftheScheduleasmitigationexpense on behalf of the insured resulting from an actual act, error or omission inprofessionalservicesrenderedbytheinsured,provided:

(1) Theprofessional servicesare renderedduring thepolicyperiodoronorafterthemitigationexpenseretroactivedate;and

(2) The insured, during the policy period, provides us with immediate writtennotice of the act, error or omission inprofessional servicesand theproposed


mitigationaction,ifany,priortoincurringanymitigationexpense;and

(3) AllmitigationexpensemustbeapprovedbyustobeingincurredbytheinsuredandmustnotbecoveredunderSECTION1-INSURINGAGREEMENTS,paragraph2,ContractorsPollutionLiability.

2. ContractorsPollutionLiability

a. ContractorsOperationsPollutionLiability

WewillpayuptotheSublimitofLiability listedin Item5oftheSchedule,exclusiveoftheExcess,defencecostsandthosesumsthattheinsuredbecomeslegallyobligatedtopay as damages arising out of bodily injury, property damage or environmentaldamagethatoccurduringthepolicyperiodandarecausedbyanoccurrence,provided:

(1) There isaclaim forbodily injury,propertydamageorenvironmentaldamagecaused by a pollution incident from your work, transportation, completedoperations,oranon-ownedsite and theclaim isassertedagainst the insuredwithin a period of three years commencing on the inception date in theSchedule;or

(2) Clean-up costs, emergency clean-up costs are caused by a pollution incidentfromyourworkortransportation,where:

(a) Such pollution incident first occurs on or after the effective date of thisPolicy;and

(b) Discoveryofsuchpollution incident firstoccursduringthepolicyperiod;and

(c) Youreportthatpollutionincidenttous, inwriting,assoonaspracticableduringthepolicyperiodorextendedreportingperiod,ifapplicable.

b. YourInsuredLocationLiability

WewillpayuptotheSublimitofLiability listedin Item5oftheSchedule,exclusiveoftheExcess,defencecostsandthosesumsthattheinsuredbecomeslegallyobligatedtopay as damages arising out of bodily injury, property damage or environmentaldamage that occur during the policy period and are caused in any one occurrence,provided:

(1) There isaclaim forbodily injury,propertydamageorenvironmentaldamagecaused by a pollution incident on, at, under or migrating beyond the legalboundariesofyourinsuredlocation;or

(2) Thatclean-upcostsoremergencyclean-upcostscausedbyapollutionincidenton,at,underormigratingbeyondthelegalboundariesofyourinsuredlocationresultinenvironmentaldamage,butonlytotheextent:

(a) Asrequiredbyenvironmentallaw;or

(b) In the absence of (a) directly above, to the extent recommended by anenvironmentalprofessional.


It is conditionprecedent to coverageunder thisSECTION1 - INSURINGAGREEMENTS,paragraph2.b.,YourInsuredLocationLiability,that:

(1) Discoveryofsuchpollutionincidentfirstoccursduringthepolicyperiod;and

(2) Thepollutionincidentoriginatesatyourinsuredlocation;and

(3) The pollution incident first commences during the policy period at anidentifiabletimeandplace;and

Thepollutionincidentceasesfullywithinten(10)daysofitscommencement.

c. Progressive, indivisible bodily injury, property damage or environmental damage,including any continuation, change or resumption, over any period of extended timecausedbythesameorrelatedpollutionincidentshallbedeemedtohaveoccurredonlyonthedateoffirstexposuretosuchpollutionincidentandonlythePolicyinforceonthedateoffirstexposurewillapply.

In the event that the date of first exposure to such pollution incident is before theinceptiondateofthefirstpolicyprovidingcontractorpollutionliabilityandissuedtoyoubyus,orcannotbedetermined,buttheprogressive,indivisiblebodilyinjury,propertydamage orenvironmentaldamage, includingany changeor resumption, continues toexistduringthepolicyperiodsuchpollutionincidentwillbedeemedtohaveoccurredontheinceptiondateofthefirstpolicyprovidingcontractorpollutionliabilityissuedtoyoubyus.

Intheeventthatthedateoffirstexposuretosuchpollutionincidentoccursduringthispolicy period and continues to exist during subsequent policies providing contractorpollutionliabilityissuedbyus,thenthefollowingapplies:

(1) All such bodily injury, property damage and environmental damage shall bedeemedtohavetakenplaceonlyduringthispolicyperiod;and

Alldamages ordefence costs arising fromall suchbodily injury,propertydamage orenvironmentaldamageshallbedeemedtohavearisenfromoneoccurrenceandshallbesubjecttotheEachPollutionIncidentLimitlistedinItems5or3BoftheSchedule(respectively).

SECTION2–DEFENCEANDSETTLEMENT

1. Wewill have the right to defend any claimmade against any insured seeking sums payableunderthisPolicy.

2. Defence costs are in addition to the Limits of Liability and are excluded from the applicableExcessesstatedintheSchedule.

3. The insured will not assume or admit liability,make any payment, consent to any judgment,settleanyclaimorincuranydefencecostswithoutthepriorwrittenconsentofus.Wewillnotbe liable for any payment, settlement, consent order or admission made by the insured towhichwehavenotconsented.

4. Iftheinsureddoesnotagreewithourdecisiontosettleaclaim,theinsuredcanelecttocontesttheclaim at itsownexpensebutour liabilitywillnotexceed theamount forwhich theclaimcouldhavebeensettledintheopinionofaseniorlegalcounsel(tobemutuallyagreeduponby


the insured and us or in the absence of agreement by determination of the President of theNewZealandLawSociety).Weshallpayalldefencecosts incurreduptothedatethe insurednotifiesus inwritingof itselectionunderthisclause,andshallpaytheinsured (subjecttotheExcess) the amount for which the claim could have been so settled. The insured expresslyagreesthatourliabilityinrespectofsuchclaimshallthenbeatanend.

5. Inaddition,ifwerecommendasettlementofaclaimtowhichthisinsuranceapplieswithinthePolicy'sapplicableLimitofLiabilitythatisacceptabletotheclaimant,andtheinsuredconsentstosuchsettlement,thenyourapplicableExcessforsuchclaimshallberetroactivelyreducedbyten (10) percent. It shall be a condition to such reduction that you must consent to thesettlement amountwithin thirty (30) days after thedatewe recommend to the insured suchsettlementamount,orinthecaseofasettlementamountwhicharisesfromasettlementofferbytheclaimant,thenwithinthetimepermittedbytheclaimanttoacceptsuchsettlementoffer,but in all events no later than thirty (30) days after we recommend to the insured suchsettlementoffer. Ifthe insureddoesnotconsenttothesettlementwithinthetimeprescribedabove, the applicable Excess shall remain the respective amount set forth in the Schedule orapplicableendorsement,evenifconsentisgiventoasubsequentsettlement.

6. Weshallhavetherighttoselectcounselfortheinvestigation,adjustmentanddefenceofclaimstowhich this insurance applies. Ifmore thanone insured is involved in a claim towhich thisinsuranceapplies,wemay,inoursolediscretion,appointseparatecounselforoneormoreofsuch insureds if there is a material (actual or potential) conflict of interest among any suchinsureds.

7. Weacceptthatitmaybenecessaryforinsuredstoretainseparatelegalrepresentationifthereisaconflictof interestbetweenthem.Ifsuchinstancearises,wewillpaythedefencecostsofeach insured up to the aggregatedefence costs Limit of Liability specified in item 3B of theSchedule.However,wewillnotpayanhourlyrateabovewhatisreasonableinthegeographicareawhere the claim is pending. Once the aggregate Limit of Liability for defence costs hasbeenerodedourliabilityforsuchcostsshallthenbeatanend

8. Additionally, we may exercise the right to require that such counsel have certain minimumqualificationswithrespecttotheircompetencyincludingexperienceindefendingclaimssimilartotheonependingagainstthe insuredandtorequiresuchcounselhaveerrorsandomissionsinsurancecoverage. Asrespectsanysuchcounsel, the insuredagreesthatcounselwill timelyrespondtoourrequestsforinformationregardingtheclaim,exceptwithregardtoinformationthatisconfidentialorprivileged,orboth,orthataffectsinsurancecoveragefortheclaim.

9. Furthermore, the insured may at any time, by the insured’s signed consent, freely and fullywaivetherighttoselectindependentcounsel.

SECTION3–EXCLUSIONS

ThisPolicydoesnotapplytoanyclaim,professionaldamages,mitigationexpense,pollutionincident,damages,clean-upcosts,emergencyclean-upcostsordefencecosts:

1. ContractualLiability

Arisingfromtheinsured’s;

a. Assumptionofother’sliabilityinacontractoragreement;or


b. Breachofcontractoragreement.

Thisexclusiondoesnotapplytoliability:(1)Thattheinsuredwouldhaveintheabsenceofthecontractoragreement;(2)asrespectsparagraph1.b.above,foractualorallegedact,errororomission in professional services; or (3) Solely with regard to SECTION 1 - INSURINGAGREEMENTS, paragraph 2.a., Contractors Operations Pollution Liability, liability assumed bythenamedinsuredinacontractoragreementthatisaninsuredcontract,providedthebodilyinjury, property damage, environmental damage or emergency clean up costs occurssubsequenttotheexecutionofthecontractoragreement.

2. CriminalFines

Arising from any criminal fines, criminal penalties or criminal assessments imposed by lawdirectlyagainstaninsured.

3. DamagetoProperty

Arisingfromlossofuse,physicalinjury,ordestructionof:

a. Real property owned by thenamed insured or rented, leased or loaned to thenamedinsured;or

b. Personalpropertyinthecare,custodycontrolofthenamedinsuredusedtoperformyourwork.

Thisexclusiondoesnotapplyto:(1)realorpersonalpropertyownedorleasedbyorinthecare,custodyorcontroloftheclient;or(2)environmentaldamagetoyourinsuredlocation.

4. DishonestActs/IntentionalNon-compliance

Arisingfromany:

a. Dishonest,fraudulent,criminal,intentionalormaliciousact,errororomissionorthoseofaknowinglywrongfulnaturecommittedbyorat thedirectionofany insured,however,this exclusionwill not apply to an insuredwho did not commit, participate in, or haveknowledgeofsuchconduct;or

b. Intentional disregard of or deliberate willful or dishonest non–compliance with anystatute,regulation,ordinance,order,administrativecomplaint,noticeofviolation,noticeletter,orinstructionbyoronbehalfofanygovernmentagencyorrepresentativeorotherstate,localorotherapplicablelegalrequirementbyoratthedirectionofanyresponsiblemanageroranagentofaninsured.

c. This exclusion does not apply to intentional disregard of or deliberate willful non–compliancewithanylaworregulation:

(1) to the insured’s good faith reliance upon the written advice of qualified outsidecounselreceivedinadvanceofsuchcompliance;or

(2) goodfaitheffortsatmitigationofemergencycleanupcosts.

5. Discrimination


Based upon or arising out of actual or alleged discrimination by an insured including but notlimited to discrimination on the basis of race, creed, national origin, disability, age, maritalstatus,sex,orsexualorientation.

6. DivestedLocation

Based upon or arising out of a pollution incident that first commences after your insuredlocation has been divested, sold, abandoned, given away, taken by eminent domain orcondemned.

7. ElectronicServices

Arising from any failure to prevent unauthorized access to or use of an electronic system orprogram, unless such unauthorized access arises out of an act, error or omission in therenderingoforfailuretorenderprofessionalservicesbyyou.

8. Employer'sLiability

Arisingfromanyinjuryto:

a. Anemployee, including leasedworkeranda temporaryworker, of the insured, arisingoutofandinthecourseof:

(1) Employmentbytheinsured;or

(2) Performingdutiesrelatedtotheconductoftheinsured'sbusiness

b. The spouse, child, parent, brother or sister or any relation of that employee, includingleased worker and a temporary worker, who has a right to make a claim against aninsuredasaconsequenceofparagraph8.a.(1)above.

c. Thisexclusionapplieswhetherthe insuredmaybeliableasanemployeror inanyothercapacityandtoanyobligationtosharedamageswithor repaysomeoneelsewhomustpaydamagesbecauseoftheinjury.

d. This exclusion does not apply to liability assumed by the insured under an insuredcontractexecutedprior to thedatesuch injuryoccursasa resultofyourwork forsuchcontract.

9. FaultyWork/OwnWork

Solely with regard to SECTION 1 - INSURING AGREEMENTS, paragraph 2.a., ContractorsOperationsPollutionLiability:

Arising out of the cost to repair or replace faultyworkmanship in any construction, erection,fabrication, installation, assembly or manufacturing process performed or provided by thenamed insured or anyone forwhomany insured is legally responsible or anyorganizationoraffiliatethatcontrols,managesorholdsmorethanatwenty-five(25)percent(25%)ownershipinterest in an insured, including materials, parts or equipment furnished in connectiontherewith, including any workmanship which is not in accordance with the drawings andspecificationswith respect to any construction, erection, fabrication, installation, assembly ormanufacturingprocess.


10. HostileActs

Arisingdirectly,inwholeorinpart,asaresultoforinconnectionwithwar,whetherdeclaredornot,oranyactorconditionincidenttowar.Warincludes:

a. Civilwar;

b. Armedconflictbetweentwoormorenations,armedconflictbetweenmilitaryforcesofany origin, or warlike action by a military force, including action in hindering ordefendingagainstanactualorexpectedattack,byanygovernment,sovereignorotherauthorityusingmilitarypersonnelorotheragents;or

c. Insurrection, rebellion, revolution, usurped power, or action taken by governmental

authorityinhinderingordefendingagainstanyofthese.

11. InsuredVersusInsured

a. Arisingfromanyclaimsmadebyanyinsuredagainstanyotherinsured;or

b. Anyclaimsbroughtagainstanyindividualorentityoritssubrogeesorassignees:

(1) Thatwhollyorpartiallyownsoroperatesyou;or

(2) Inwhichyouhaveanownershipinterestinexcessoftwenty-five(25)percentor

(3) Thatiscontrolledoroperatedbyyou;or

(4) Inwhichyouareanofficerordirector.

ThisexclusiondoesnotapplytoaclaimbyanentitythatisaninsuredsolelybythedefinitioninSECTION6-DEFINITIONS,paragraph15.d.

12. Non-DisclosedKnownConditions

Baseduponorarisingoutofapollutionincidentoranactualorallegedact,errororomissioninprofessional services in existence prior to the inception date of the Policy or prior to theeffective date of an endorsement to this Policy and known by or reported to a responsiblemanager.

However,thisexclusionshallnotapplyto:

a. With respect to a project site, a pollution incident in existence prior to you firstperformingyourworkorprofessionalservicesatsuchprojectsite;or

b. The exacerbation of a pollution incident at a project site as a result of your workprovided:

(1) Suchpollutionincidentwasinexistencepriortothe insuredfirstperformingyourwork;and

(2) Suchexacerbationwasnot knownor reported toa responsiblemanager prior totheinceptiondateofthePolicyorpriortotheeffectivedateofanendorsementtothisPolicy;or


c. AnypollutionincidentthatisexpresslydisclosedtousandscheduledunderthisPolicyorby endorsement as an Accepted Known Condition. Such pollution incident shall bedeemedtohavebeenfirstdiscoveredonthe inceptiondateortheeffectivedateoftheapplicableendorsement.

13. UseOfYourInsuredLocation

Baseduponorarisingoutof:

a. Any material change in use or operations at your insured location from the use oroperations stated by you in the Application or Questionnaire, or both, or otherinformationsubmittedtousthatformsthebasisofcoverage;or

b. Theoperationofawastetransfer,storage,treatment,ordisposalfacilityorlandfillatyourinsured location unless such location is approved by us and listed in Your LocationScheduleendorsedontothisPolicy.

14. PriorClaimsOrIncidents

Baseduponorarisingfromaclaim,professionaldamages,mitigationexpense,damages,clean-upcosts,emergencyclean-upcostsordefencecostsoractualorallegedact,errororomissioninprofessionalservicesorothercircumstancesreportedbyyouunderanypriorpolicythatwasnot issuedbyusoranyentityaffiliatedwithusor thatwasknownbya responsiblemanagerpriortotheinceptionofthepolicyperiod.

15. Products

Arising from any goods, materials, products or equipment designed, manufactured, sold,handled, distributed or disposed by the insured or others trading under the insured’s name,afterpossessionofsuchgoods,materials,productsorequipmenthavebeenrelinquishedbytheinsured or others trading under its name, unless such claim, damages, clean-up costs,emergency clean-up costsordefence costsor any other coverage afforded under this Policyarisesoutoftheassembly,fabricationorinstallationofsuchproductsaspartofyourwork.

This exclusion does not apply to such products while within the boundaries of your insuredlocationorduringtransportation.

16. Nuclear

Baseduponorarisingdirectlyor indirectlyfromtheradioactive,toxicorexplosivepropertiesofradioactivematerial,nuclearfuelorwaste,and/ornuclearreactorsandnuclearpowerstationsorplants, and any other premises or facilities whatsoever related to or concerned with theproductionofnuclearenergyortheproductionorstorageorhandlingofnuclearfuelorwaste.

17. RelatedEntities

Baseduponorarisingoutofaclaimbyanentityorindividualthat:

a. isanaffiliateofaninsured;or

b. an insured controls,manages,operatesorholdsmore than twenty-fivepercent (25%)ownershipinterestin,orwhichcontrols;or

c. manages,operatesorholdsmorethanatwenty-five(25)percentownershipinterestin


aninsured;or

d. iscontrolledormanagedbyaninsured.

18. UndergroundStorageTanks

Baseduponorarisingoutofapollution incident resultingfromanundergroundstoragetankwhoseexistenceisknownbyyouasoftheinceptionofthisPolicyandwhichislocatedatyourinsured location, unless such underground storage tank is scheduled on the Policy byendorsement.However,thisexclusiondoesnotapplytoanyundergroundstoragetankthatis:

a. Anundergroundstoragetankwhichhasbeenclosed inplaceor removedprior to theinceptiondateofthisPolicyincompliancewithallapplicablelawsand/orregulationsineffectduringsuchclosureorremoval;or

b. Aprocesstank, includingseptictanksandoil/waterseparators, locatedpartially intheground;or

c. Locatedonorabovethefloorofstructuresbuiltbelowthegroundsurfacesuchasvaultsorsubsurfacefloorsofbuildings.

19. Transportation

Based upon or arising out of property damage to any conveyance utilized duringtransportation. This exclusiondoesnot apply to claimsmadeby third-party carriers for suchpropertydamagearisingfromtheinsured’snegligence.

20. Warranty/Guarantee

Based upon or arising out of any express warranty or guarantee unless liability would haveattachedbylawtotheinsuredintheabsenceofsuchwarrantyorguarantee.

This exclusion does not apply to anywarranty or guaranty by the insured that the insured’sprofessional servicesoryourworkare in conformitywith thegenerally accepted standardofcareoralegalobligationthatwouldbeapplicableintheabsenceofsuchwarrantyorguaranty.

21. WorkersCompensation

Baseduponorarisingoutofanyobligationforwhichanyinsuredoranyinsurancecarrierwillbeliable under any worker’s compensation, unemployment compensation, employer’s liability,disabilitybenefitslaworunderanysimilarlaw.

22. YourInsuredLocation–AsbestosAndLead-basedPaint

Baseduponor arising out of the existence of, required removal or abatement of asbestos orlead-based paint in any form including but not limited to asbestos containing materials,productscontainingasbestos,asbestosfibersandasbestosdust.

Thisexclusiondoesnotapplytoyourwork, includinganyunintentionaldisturbancebyyouoryoursubcontractorofasbestosorlead-basedpaint,completedoperations,transportationoranon-ownedsite.

SECTION4–LIMITSOFLIABILITYANDEXCESS


1. LimitsOfLiability

(1) TheAggregateLimitof Liability for thisPolicy (excludingdefencecosts) is theamountspecifiedinItem3AoftheSchedule,andisourmaximumliabilityunderthisPolicy.

(2) AnySublimitofLiabilityforthisPolicyassetforthinItem5oftheSchedule:

(a) Shallbepartof,andnotinadditionto,theLimitofLiabilityofthisPolicy;and

(b) Is the maximum liability of the Underwriters for all amounts to which theSublimitofLiabilityapplies.

(3) Payment of any claim under this Policy shall reduce andmay exhaust the AggregateLimitofLiabilityofthisPolicysetforthinItem3AoftheSchedule.IftheAggregateLimitofLiabilityofthisPolicyisexhaustedbythepaymentofaclaim,wewillhavenofurtherobligationsof anykindwith respect to thisPolicy, includinganyobligation topayanyfurtherdefencecosts,andthePremiumsetforthinItem14oftheSchedulewillbefullyearned.

(4) Payment of any claim under this Policy shall reduce andmay exhaust the applicableSublimitofLiabilitysetforthinItem5oftheSchedule.IfanySublimitofLiabilityofthisPolicy is exhausted by the payment of a claim, we shall have no further obligationsunderthisPolicywithrespecttoanymattertowhichsuchSublimitofLiabilityapplies.

(5) Defence costs are not part of, and are in addition to, any Sublimit of Liability of thisPolicy.Paymentbyusofdefencecosts shallnot reduceany suchSublimitof Liability.Payment of defence costs shall reduce and may exhaust the defence costs Limit ofLiabilityinItem3Aoftheschedule.Oncethislimitiseroded,wewillhavenoliabilityforanyfurtherdefencecostsduringthePolicyPeriod.

2. Excess

SubjecttotheLimitofLiabilitysetoutinparagraph1above,weareliableonlyforthatportionof coverageprovidedunder this Policy in excess of the applicable Excess, if any. In the eventmultipleinsuringagreementsorcoveragepartsapply,onlyoneExcesswillapplywhichshallbethehighestExcessamountoftheapplicablecoverageparts.TheserespectiveExcessesshallbepaid by thenamed insured and remain uninsured.Wemay pay any part or all of the Excessamounttoeffectsettlementofanyclaimorsuit,ortopayclean-upcostsoremergencyclean-upcostswhichmaybecoveredunderthisPolicy,anduponnotificationoftheactiontaken,youshallpromptlyreimburseusforsuchpartoftheExcessamountashasbeenpaidbyus.

TheapplicableExcessunderthisPolicyshallbeexclusiveofdefencecosts.

SECTION5–CONDITIONS

1. AuditandInspection

Wewillbepermitteduponreasonablepriornoticetoaudit,monitorandinspectonacontinuingbasis anyof the insured’s booksand records at any timeduring thepolicyperiod andwithinthreeyearsafterthefinalterminationofthisPolicy,asfarastheyrelatetothesubjectmatterofthis Policy. Wewill also be permitted upon reasonable prior notice to inspect, sample andmonitoronacontinuingbasisthe insured’soperations.Neitherourrighttomake inspections,sampleandmonitornortheactualundertakingthereofnoranyreport thereonwillconstitute


an undertaking, on behalf of us or others, to determine orwarrant that operations are safe,healthfulorconformtoacceptableengineeringpracticeorareincompliancewithanylaw,ruleorregulation.

Wemaymodify,amendordeleteanyof the termsandconditionsof thisPolicy including theright to charge additional premium and the right to cancel, rescind or void this Policy, if ourexamination,audit,monitoringorinspectionrevealsanymaterialrisk,hazardorconditionthatwas not previously disclosed by any insured in the Application or supplementalmaterials, orwhichdeviatesfromtheinformationdisclosedintheApplicationorsupplementalmaterials.

2. Subrogation

IntheeventofanypaymentunderthisPolicy,wewillbesubrogatedtoalltheinsured'srightsofrecovery thereof and the insuredwill execute and deliver all instruments and papers and dowhatever else is necessary to secure such rights. The insured will do nothing to waive orprejudicesuchrights.Anyamountsrecoveredinexcessofourtotalpaymentwillbepaidtotheinsured, less the cost to us of recovery. However, it is agreed that wewaive our rights ofsubrogation under this Policy against clients of thenamed insured to the extent the client’swrittencontractwiththenamedinsuredrequiressuchawaiverofsubrogation,butonly:

a. Totheextentrequiredbysuchcontract;and

b. Whensuchcontracthasbeenexecutedpriortoanyevent,workorprofessionalservicesthatwouldgiverisetocoverageunderthisPolicy.

3. Changes

NoticestoanyagentorknowledgepossessedbyanyagentwillnoteffectawaiverorachangeinanypartofthisPolicyorpreventusfromassertinganyrightsunderthetermsofthisPolicy,norwillthetermsofthisPolicybewaivedorchanged,unlessendorsedhereonbyus.

4. Assignment

It is agreed that the insurance provided herein cannot be transferred or assigned to anotherpartywithouttheexpresswrittenconsentofus.AssignmentofinterestunderthisPolicyshallnotbindusuntilourconsent,whichshallnotbeunreasonablywithheld,isendorsedthereon.

5. Cancellation

a. ThisPolicymayonlybecancelledbyusforanyofthefollowingreasons:

(1) Non-paymentofanypremiumorExcessamount;or

(2) AmaterialmisrepresentationorconcealmentoffactswhichaffectsourassessmentoftherisksinsuredbythisPolicy;or

(3) Amaterialbreachoforfailuretocomplywithanyprovisionof,orobligationunderthisPolicy.

b. IfthisPolicyiscancelledbyus,noticeofcancellationwillbesentinwritingtothenamedinsured,attheaddressindicatedontheSchedule.Wewillprovidesuchwrittennoticeatleast ninety (90) days, or ten (10) days for non-payment of premium, prior to the datesuchcancellationistotakeeffect.


c. Theeffectivedateandhourofcancellationwillbestatedinsuchnotice.CancellationbyusalsocancelstheAutomaticExtendedReportingPeriodandExtendedReportingPeriod.Both the policy period and the Automatic Extended Reporting Period and ExtendedReporting Period will end on that date. If we cancel for the reason specified insubparagraph (i) there will be no return premium. If we cancel for reasons stated insubparagraphs (ii) or (iii), the earned premiumwill be computed pro-rata of the Policytermpremium.Paymentofanyreturnpremiumwillnotbeaconditionofcancellation.

d. ThisPolicymaybecancelledbythenamedinsuredforanyreason.IntheeventthatthenamedinsuredcancelsthePolicy,theearnedpremiumwillbecomputedshort-rateofthePolicytermpremium.

e. IntheeventthePolicyhasaminimumearnedpremium,thepremiumreturnableaftertheminimumearnedisretainedbyuswillbecomputedutilizingthecustomaryshortrateorpro-rate tables, whichever is applicable. If theminimum earned is one hundred (100)percent, you are not entitled to any return premium regardless of the reason forcancellation. In theeventofa lossunder this Policy, thepremiumwillbedeemedonehundred(100)percentearnedandyouarenotentitledtoanyreturnpremium.

f. Intheeventofcancellationbyusbyreasonofparagraph5.a.(3)above,youwillhavesixty(60)daysfromthedateofnoticeofcancellationtoremedyeachbreachandeachfailurethatisagroundforcancellation,butonlyastoeachandeverybreachandfailurethatarecapableofbeingremedied. Ifyourremedialeffortsarecompletedwithinsuchsixty(60)dayperiodandaresatisfactory tous,wewill rescindsuchNoticeofCancellationwithawrittenconfirmationtothenamedinsured.

6. LegalActionAgainstUs

NopersonororganizationhasarightunderthisPolicy:

a. Tojoinusasapartyorotherwisebringusintoasuitaskingdamagesfromaninsured;or

b. TosueusonthisPolicyunlessallofitstermshavebeenfullycompliedwith.

Apersonororganizationmaysueustorecoveronanagreedsettlementoronafinaljudgmentagainstaninsured;butwewillnotbeliablefordamagesthatarenotpayableunderthetermsof this Policy or that are in excess of the applicable Limit of Liability. An agreed settlementmeans a settlement and releaseof liability signedbyus, the insured and the claimantor theclaimant'slegalrepresentative.

7. Bankruptcy

The named insured’s bankruptcy or insolvency will not relieve us of our obligationsunderthisPolicy.

8. GoverningLawAndDisputes

ThisPolicyisgovernedbyandshallbeconstruedinaccordancewiththelawofNewZealand.

It isagreedthatintheeventoffailurebyustopayanyamountclaimedtobeduehereunder,we, at the request of the insured, will submit to the jurisdiction of a court of competentjurisdictionwithinNewZealand.Nothinginthisconditionconstitutesorshouldbeunderstoodto constitute a waiver of our rights to commence an action in any court of competent


jurisdictioninNewZealand,toremoveanactiontosuchacourt,ortoseekatransferofacasetoanothercourtaspermittedbythe lawsofNewZealand. It is furtheragreedthatserviceofprocessinsuchsuitmaybemadeupontheClaimsManager,DeltaInsurance(NewZealand)Ltd,PO Box 106 276 Auckland 1010, or his or her representative, and that in any suit institutedagainstuswithrespecttothiscontract,wewillabidebythefinaldecisionofsuchcourtorofany appellate court in the event of any appeal. The partieswill submit to the Courts ofNewZealand.

9. Severability

IfanymaterialprovisionorclauseofthisPolicyisdeclaredillegalorunenforceablebyanycourtof competent jurisdiction and cannot be modified to be enforceable, that provision willimmediatelybecomenullandvoid,leavingtheremainderofthisPolicyinfullforceandeffect.

ExceptwithrespecttotheLimitsofLiabilityandtheexcessamounts,SECTION3–EXCLUSIONS,paragraph11,InsuredVersesInsured,andanyrightsordutiesspecificallyassignedinthisPolicytothenamedinsured,thisinsuranceapplies:

a. asifeachnamedinsuredweretheonlynamedinsured;and

b. separatelytoeachinsuredagainstwhomaclaimismade.

Anymisrepresentation,actoromissionthatisinviolationofaterm,dutyorconditionunderthisPolicybyoneinsuredshallnotprejudiceanotherinsuredunderthisPolicy.Thisconditionshallnotapplytoaninsuredwhoisaparent,subsidiaryoraffiliateoftheinsuredwhichcommittedthemisrepresentation,actoromissionreferencedabove.

10. SoleAgent

If there ismore than one insured named in this Policy, the firstnamed insured shall act onbehalf of all insureds for all purposes, including but not limited to the payment or return ofpremium,paymentofanyapplicableExcess,receiptandacceptanceofanyendorsementissuedtoformapartofthisPolicy,complyingwithallapplicableclaimsprovisions,givingandreceivingnotice of cancellation or nonrenewal, reimbursement to us of any Excess advanced and theexerciseof the rightsprovided in theExtendedReportingPeriodor SubrogationprovisionsofthisPolicy.

11. OtherInsurance

Ifthereisothervalidandcollectibleinsurance,ourobligationsareasfollows:

a. With regard to SECTION 1 – INSURINGAGREEMENTS, paragraph 1, Professional Liability ,this insurance isexcessoveranyothervalidandcollectible insurance,whethersuchotherinsuranceisstatedtobeprimary,contributory,excess,contingentorotherwise;

b. This insurance is excess over any other valid and collectible insurance under a projectspecific insurance policy, contractor controlled insurance program, owner controlledinsurance program, consolidated (wrap-up) insurance program or any other similarinsurance or program,whether such other insurance or program is stated to be primary,contributory,excess,contingentorotherwise.

c. Whereothervalidandcollectibleinsuranceisavailableandisalsoprimary,ourobligationtotheinsuredisasfollows:


(1) Ifotherprimaryinsurancepermitscontributionbyequalshares,wewillalsofollowthismethod.Underthismethod,eachinsurercontributesequalamountsuntil ithaspaidtheapplicableLimitofLiabilityornoneofthelossremains,whichevercomesfirst;or

(2) Ifanyotherinsurancedoesnotpermitcontributionbyequalshares,wewillcontributepro-ratabylimits.Underthismethod,eachInsurer’sshareisbasedontheratioofitsapplicable Limit of Liability to the total applicable Limit of Liability of all primaryinsurers.

d. Withregardtorestorationcosts,thisinsuranceisexcessoveranyothervalidandcollectibleinsurance, whether such other insurance is stated to be primary, contributory, excess,contingentorotherwise.

12. MultipleClaims

Twoormoreclaimsarisingoutofasingleact,error,omission,incidentorpollutionincident,orarising out of a series of acts, errors, omissions or incidents related to each other, will beconsidered a single claim subject to the respective single Each Loss Limit of Liability and oneExcess,andwillnotoperatetoincreaseourLimitsofLiability.Allsuchclaims,whenevermade,willbeconsideredfirstmadeduringthepolicyperiodoftheearliestclaimwasfirstmade.

13. Extended Reporting Period for SECTION 1 – INSURING AGREEMENTS, Paragraph 1.a.,ContractorProfessionalLiability

The named insured shall be entitled to an Automatic Extended Reporting Period, and (withcertain exceptions as described in Paragraph b. of this section) be entitled to purchase anOptional Extended Reporting Period for SECTION 1 - INSURING AGREEMENTS, paragraph 1,Professional Liability, upon termination of coverage as defined in paragraph 12.b.(3). NeithertheAutomaticnortheOptionalExtendedReportingPeriodshallreinstateorincreaseanyofthelimitsofliabilityofthisPolicy.

a. AutomaticExtendedReportingPeriod

Provided that thenamed insured has not purchased any other insurance to replace thisinsuranceandtheclaimisotherwisecoveredhereunder,thenamedinsuredshallhavetheright to the following: a period of ninety (90) days following the effective date of suchterminationofcoverageinwhichtoprovidewrittennoticetousofclaimsfirstmadeandreported within the Automatic Extended Reporting Period. A claim first made andreportedwithin the Automatic Extended Reporting Periodwill be deemed to have beenmadeonthelastdayofthepolicyperiod,providedthattheclaimarisesfromanactualorallegedact,errororomissionintheperformanceofyourprofessionalservicesrenderedonoraftertheprofessionalliabilityretroactivedateandpriortotheendofthepolicyperiodand is otherwise covered by this policy. No part of the Automatic Extended ReportingPeriodshallapplyiftheOptionalExtendedReportingPeriodispurchased.

b. OptionalExtendedReportingPeriod

Thenamed insured shall beentitled topurchaseanOptional ExtendedReportingPeriodupon termination of coverage as defined herein (except in the event of nonpayment ofpremium),asfollows:


(1) A claim firstmade and reportedwithin theOptional Extended Reporting Period, ifpurchased inaccordancewith theprovisionscontained inparagraph (2)below,willbedeemedtohavebeenmadeonthelastdayofthepolicyperiod,providedthattheclaimarises fromanactualor allegedact, errororomission in theperformanceofyourprofessionalservicesrenderedonoraftertheprofessionalliabilityretroactivedateandpriortotheendofthepolicyperiodandisotherwisecoveredbythisPolicy;and

(2) Weshall issueanendorsementprovidinganOptionalExtendedReportingPeriodofuptothirty-six(36)monthsfromterminationofcoveragehereunder,providedthatthenamedinsured:

(a) Makesawrittenrequestforsuchendorsementwhichwereceivewithinthirty(30)daysafterterminationofcoverageasdefinedherein;and

(b) Pays the additional premium when due. If that additional premium is paidwhen due, we may choose not to cancel the Extended Reporting Period,provided that all other terms and conditions of the Policy are met, suchdeterminationtobemadeatoursolediscretion.

(3) Termination of coverage occurs at the time of cancellation or nonrenewal of thisPolicybythenamedinsuredorbyus.

(4) TheOptional Extended Reporting Period is available to thenamed insured for notmore than two hundred (200) percent of the full Policy premium stated in theSchedule.

14. Currency

AllreimbursementshallbemadeinNewZealandcurrencyattherateofexchangeprevailingon:

a. Thedateofjudgmentifjudgmentisrendered;or

b. Thedateofsettlementifsettlementisagreeduponwithourwrittenconsent;or

c. Thedatedefencecostsarepaid.

15. ScheduleandRepresentations

Byacceptanceof thisPolicy, youagree that the statements and information contained in theApplicationorQuestionnaire,orboth,andothersupplementalmaterialssubmittedtousare:

a. trueandcorrect;

b. suchstatementsandinformationarematerialtoourunderwritingofthisPolicy;and

c. that thisPolicyhasbeen issuedbyus in relianceupon the truthandcorrectnessof suchstatementsandinformation.

16. DutiesInTheEventOfClaimOrPollutionIncident

a. NoticeOfPossibleClaim

(1) Ifduringthepolicyperiod,theinsuredbecomesawareofanact,errororomissioninprofessionalservicesorpollutionincidentwhichmaybeexpectedtogiveriseto


aclaim(thereafterreferredtoasa“possibleclaim”)underthePolicy,the insuredmust provide written notice to us during the policy period containing all theinformation listed under paragraph 16.a.(2) below. Any possible claim thatsubsequently becomes a claim shall be deemed to have been first made andreportedduringthepolicyperiodofthisPolicy.Suchclaimshallbesubjecttotheterms, conditions and limits of coverage of the Policy under which the possibleclaimwasreported.

(2) It isaconditionprecedent to therightsaffordedthe insuredunder thisCondition16andanypossiblecoverageaffordedbythisPolicythatsuchwrittennoticeunder16.a.(1).directlyabovecontainallofthefollowinginformation:

(a) Thecircumstancesanddateoftheactualorallegederrorsoromissionsinprofessionalservicesandthespecificnature,dateandextentofanyinjuryorprofessionaldamageswhicharethesubjectofthepossibleclaim;

(b) Thedateanddetailsofthepollutionincidentandrelatedservicesorworkthatmayhavecausedsuchcondition;

(c) Copies of any contract executed by the insured that is related to suchpossibleclaim;

(d) Thecircumstancesbywhichtheinsuredfirstbecameawareofthepossibleclaim.

b. ClaimForProfessionalDamages

Youmustseetoitthatwearenotifiedinwritingassoonaspracticablewithinthepolicyperiodorextendedreportingperiodwhenyoubecomeawareofanact,errororomissionwhichmaybe expected to give rise to a claim for professional damages. To the extent possible, noticeshouldinclude:

(1) Thetime,placeandexplanationoftheact,errororomissionincludinghowyoufirstbecameawareoftheact,errororomission;and

(2) The names and addresses of any injured persons and witnesses and claim forprofessionaldamageswhichhaveormayresultfromsuchact,errororomission;and

(3) Any and all investigative or engineering reports, data or information about the act,errororomission,orclaimforprofessionaldamages;and

(4) Copies of any relevant contracts between you and your client for professionalservices.

Theinsuredshalltakereasonablemeasurestoprotecttheirinterests.WeshallnotbeliableforprofessionaldamagesoranyothercoverageaffordedunderthisPolicyadmittedbytheinsuredwithoutourpriorwrittenconsent.

c. PollutionIncidentOrClaimForDamages


Youmust see to it that we are notified in writing as soon as practicable of discovery of apollution incidentwhichmay result ina claim,or receiptofaclaim. To theextentpossible,noticeshouldinclude:

(1) How,whenandwherethepollutionincidenttookplace;and

(2) Thenamesandaddressesofanyinjuredpersonsandwitnesses;and

(3) The nature and location of any injury or damages arising out of the pollutionincident.

The insured shall take reasonablemeasures toprotect their interests.Weshallnotbe liablefordamagesoranyothercoverageaffordedunderthisPolicyadmittedbytheinsuredwithoutourpriorwrittenconsent.Norshallwebe liableforanydefencecosts incurred inrespectofsuchaclaim.

Theinsuredshallhavetherightanddutytoretainanenvironmentalprofessional,subjecttoourconsent,toperformtheinvestigationorremediationofanypollutionincidentcoveredbythis insuranceafterdiscoveryoryouarenotifiedoftheexistenceofsuchpollutionincident.We have the right, but not the duty, to review and approve all aspects of any suchinvestigationorclean-up.Exceptforemergencyclean-upcosts,anycostsincurredwithoutourconsentwillnotbecoveredunderthisPolicyorcreditedagainsttheExcess.

d. Cooperation

Youandanyotherinvolvedinsuredmust:

(1) Immediately send us copies of any demands, notices, summonses or legal papersreceivedinconnectionwiththeclaimforprofessionaldamagesorsuit;and

(2) Authorizeustoobtainrecordsandotherinformation;and

(3) Cooperate with us in the investigation or settlement of the claim for professionaldamagesordefenceagainstthesuit;and

(4) Assist us, upon our request, in the enforcement of any right against any person ororganizationwhichmaybeliabletotheinsuredbecauseofinjuryordamagestowhichthisPolicymayalsoapply;and

(5) Takereasonablemeasurestoprotecttheirinterests.

If we are prohibited under applicable law from investigating, defending or settling any suchclaim or suit, the insured shall, under our supervision, arrange for such investigation anddefencethereofas is reasonablynecessary,andsubject toourpriorauthorization,shalleffectsuchsettlementthereof.

e. VoluntaryPayment

No insured will, except at that insured's own cost, voluntarilymake a payment, assume anyobligation,orincuranyexpense,otherthanforfirstaid,withoutourpriorwrittenconsent.


If we are prohibited under applicable law from investigating, defending or settling any suchclaim or suit, the insured shall, under our supervision, arrange for such investigation anddefencethereofas is reasonablynecessary,andsubject toourpriorauthorization,shalleffectsuchsettlementthereof.

f. Clean-UpCosts

When any insured becomes obligated to pay clean-up costs towhich this Policy applies, theinsuredmust:

(1) Attempttominimizeandmitigatesuchcostsasreasonablyandnecessary;and

(2) Obtainourpriorwrittenapprovalforanycosts,chargesorexpensesincurredbytheinsuredformaterialssuppliedorservicesperformedbytheinsured;and

(3) Submit, for our approval, all proposed work prior to submittal to any regulatoryagency;and

(4) Submit,forourapproval,allbidsandcontractsforclean-upcostspriortoexecutionorissuance;and

(5) Forward progress submittals regarding clean-up costs at reasonable intervals andalwaysprior to submittal to any regulatory agency that is authorized to reviewandapprovesuchsubmittals.

We have the right, but not the duty, to review and approve all aspects of any suchinvestigation or clean-up costs. In addition, we shall have the right, but not the duty, toassumedirect control of such clean-up costs, including investigation or remediation of suchpollutionincident,onbehalfoftheinsured.Anyclean-upcostsincurredbyusshallbeappliedagainst the applicable Excess and applicable Limit of Liability shown in the Schedule of thisPolicy.

g. EmergencyClean-upCosts

(1) Intheeventofemergencyclean-upcosts,the insuredmayselectanenvironmentalprofessional without our prior consent. Except for emergency clean-up costs, anycosts incurredwithoutourconsentwillnotbecoveredunder thisPolicyorcreditedagainsttheExcess.

(2) Asaconditionprecedentforcoverageofemergencyclean-upcostsunderthisPolicy,wemustbenotifiedbythe insuredassoonaspracticableofsuchemergencyclean-up costs. When emergency clean-up costs have been incurred, the insured shallforward to us within seven (7) consecutive days of the commencement of thepollution incident for which the emergency clean-up costs have been incurred allinformation including but not limited to: the cause and location of the pollutionincident,technicalreports,laboratorydata,fieldnotes,expertreports,investigations,datacollected, invoices,regulatorycorrespondenceoranyotherdocumentsrelatingto such emergency clean-up costs. We retain the right to determine whichemergencyclean-upcostsaredeemedreasonableandnecessary.

17. EconomicAndTradeSanctions

Weshallnotbedeemedtoprovidecovernorbeliabletopayanyclaimorprovideanybenefit


under this Policy to the extent that the provision of such cover, payment of such claim orprovision of such benefit would expose the us to any sanction, prohibition or restriction,including under United Nations resolutions, or the trade or economic sanctions, laws orregulationsoftheEuropeanUnion,UnitedKingdomorUnitedStatesofAmerica.

18. PolicyTerritory

UnlessotherwisespecifiedintheSchedule,thisPolicyshallonlyapplytoaclaimarisingoutofyour operations or services covered under this Policy and conducted in New Zealand andprovidedtheclaimisfirstbroughtinNewZealand.

19. GST

Where the insured is liable topay taxundersection5 (13)of theGoodsandServicesTaxAct1985 (orany statutoryamendmentor re-enactmentof the sectionorAct)upon receivinganyindemnity payment under this Policy. The indemnity under this SECTION 5 – CONDITIONS,paragraph 19, GST is payable by us in addition to the Limit of Liability and any Sublimit ofLiabilitysetoutintheSchedule.

20. ComplaintsProcedure

a. Any enquiry or complaint relating to this Policy should be referred toDelta InsuranceNewZealandLimitedinthefirstinstance.

b. If this does not resolve the matter or the insured is not satisfied with the way theenquiryorcomplainthasbeendealtwith,theinsuredshouldwriteto:

Lloyd’sGeneralRepresentativeinNewZealand

C/OHazeltonLaw

Level3

101MolesworthStreet

POBox5639

WellingtonNewZealand

SECTION6–DEFINITIONS

1. Bodily injury means bodily injury, physical injury, sickness, building-related illness, disease,includingdeathresultingthereforeormentalanguish,emotionaldistressorshocksustainedbyanypersonandassociatedmedicalandenvironmentalmonitoringforsuchperson.

2. Claimmeansdemand,noticeorassertionofalegalrightseekingaremedyorallegingliabilityorresponsibilityonthepartoftheinsured.

3. Clientmeanstheindividualorentitywhohiresthenamedinsuredtoperformyourwork.

4. Clean-upcostsmeansreasonableandnecessaryexpensesandrestorationcosts,resultingfromenvironmental damage incurred to investigate, abate, contain, treat, remove, remediate,monitor,ordisposeofsoil,surfacewater,groundwaterorothercontaminatedmedia.


5. Completedoperationsmeansyourworkthathasbeencompleted.

Yourworkisdeemedcompleteattheearliestofthefollowingtimes:

a. Yourworktobeperformedunderacontractiscompleted;or

b. Yourworktobeperformedataprojectsitehasbeencompleted;or(c) Whenaportionofyourworkhasbeenputtoitsintendeduse.

Completedoperationsdonotincludeyourworkthathasbeenabandoned.

6. Conveyance means only motor vehicle, trailer or semi-trailer, rolling stock, watercraft oraircraftoperatedbyyouorathird-partycarrier,providedyouorsuchthird-partycarrierareproperly permitted and licensed to transport such goods, materials, product or waste.Conveyancedoesnotincludepipelines.

7. Damagesmeans:

a. Monetaryjudgment,awardsorsettlementofcompensatorydamagesforbodilyinjury,propertydamage,environmentaldamageorclean-upcosts;

b. Clean-upcostsincludingemergencyclean-upcosts;

c. Punitive, exemplary ormultiplied damages forwhich the insured is legally liable, butonlywhereinsurancecoverageforsuchfinesandpenaltiesisallowablebylaw;

d. Civilfinesandpenaltiesassessedagainstaclientforwhichthenamedinsuredislegallyliable, butonlywhere insurance coverage for such fines andpenalties is allowablebylaw;

e. Civil fines,penalties,assessedagainst the insured,butonlywhere insurancecoverageforsuchfinesandpenaltiesisallowablebylaw;and

f. Restorationcosts.

Damagesdoesnotinclude:

(1) Injunctiveorequitablerelief;

(2) Thereturnoffeesorchargesforservicesrenderedor

(3) Defencecosts.

8. Defencecostsmeans:

a. Reasonable legal fees, costsandexpenses incurredbyan insured in the investigation,defence, settlement or appeal of a claim and approved inwriting by us, prior to theretentionofsuchlegalrepresentation;and

b. Reasonablefees,costsandexpensesincurredbytheinsuredatourrequesttoassistustoinvestigateaclaim.

Fortheavoidanceofdoubtdefencecostsdoesnotinclude:

(1) Legal fees, costs and expenses of legal representation unless approved inwritingbyus,priortotheretentionofsuchlegalrepresentation;or


(2) Salarychargesofyouremployees;or

(3) Emergencyclean-upcosts;or

(4) Mitigationexpense.

9. Discoverymeanswhenaninsuredfirsthasknowledgeofapollutionincident.

10. Emergencyclean-upcostsmeansclean-upcostsincurredbythenamedinsuredinresponsetoapollutionincidentthat:

a. Presents an imminent and substantial threat tohumanhealthor theenvironment, orboth;or

b. Requiresanimmediateresponseinordertomitigateorreducepotentialdamages.

Youmustseetoitthatwearenotifiedassoonaspracticableofapollutionincidentwhichmayresult inor requiredemergency clean-up costsunder thisPolicy. Whenemergency clean-upcostshavebeen incurred, thenamed insured shall forward touswithinseven (7)daysof thecommencementof thepollution incident forwhich theemergency clean-up costshavebeenincurredall information includingbutnot limited to: the causeand location of thepollutionincident, technical reports, laboratory data, field notes, expert reports, investigations, datacollected, invoices, regulatory correspondence or any other documents relating to suchemergencyclean-upcosts.Suchexpensesmustbedeemedreasonableandnecessarybyus(?).

11. Environmental damage means physical damage to soil, any water course or body of waterincludinggroundwater,atmosphere including indoorair,plantoranimal life,ortobuildingsorother structures caused by a pollution incident and resulting in remediation activities.Environmentaldamagedoesnotincludepropertydamage.

12. Environmentallawmeansanyfederal,state,territory,orotherlocallaws,statutes,ordinances,regulations, rules, codes, policies, guidance, court or administrative orders or judgments anddirectivesandall amendments thereto relating topollutionorprotectionof theenvironment,health, safetyor natural resources, including state voluntary clean-upor risk-based correctiveactionguidance,ifapplicable.

13. Environmental professionalmeans an individual or entity approved by us in writing that islicensed and certified to provide environmental services. We shall consult with you inconjunctionwiththeselectionoftheenvironmentalprofessional.

14. Fungimeansanyofnumerouseukaryoticorganismsofthekingdomfungi,whichlackchlorophyllandvasculartissueandrangeinformfromasinglecelltoabodymassofbranchedfilamentoushyphaethatproducespecializedfruitingbodies.

15. Insured(s)means:

a. Thenamedinsured;

b. Anypresentorformerpartner,director,officer,manager,memberoremployee,includinga leasedworkeranda temporaryworker, of thenamed insured solelywhile actingonbehalfofthenamedinsured;

c. Anyinsuredwithregardtoitsparticipationinalegalentityincludingajointventure,butsolelyforthe insured’s legal liabilityforitsperformanceofprofessionalservicesoryour


workundertherespectivelegalentityorjointventure.Insureddoesnotincludethelegalentityitself,thejointventureitselforanyotherentitythatispartofeitherthelegalentityor joint venture, except as respects liability assumed by the insured for a pollutionincident;

d. With regard toSECTION1 - INSURINGAGREEMENTS,paragraph2,ContractorsPollutionLiability only, any client of the named insured that the named insured has agreed bywrittencontracttonameasanadditionalinsuredonthisPolicy,butonlywithrespecttocovereddamagescausedbyyourwork;

e.Anyentitywhichisspecificallyreferencedasaninsuredbyendorsement;

f. Theestate,heirs,executors,administratorsor legal representativesofan insured in theevent of such insured’s death, incapacity or bankruptcy but only to the extent suchinsuredwouldotherwisebeprovidedcoverageunderthisPolicy;

g. Anyentitynewly formedor acquiredby thenamed insured during thepolicyperiod inwhich the named insured has more than fifty (50) percent legal or beneficial interest.However:

(1) Coveragewillonlybeprovidedforclaimsarisingoutprofessionalservicesoryourworkperformedonorafterthedateofformationoracquisition;and

(2)Thiscoveragewillexpirewithinninety(90)daysofsuchformationoracquisitionorthe end of the policy period, whichever is earlier, unless the named insuredprovideswrittendetailsofsuchnewlyformedoracquiredentitytousandpaystheadditionalpremiumrequestedbyus,ifany.

16. Insuredcontractmeansthatpartofanywrittencontractorwrittenagreementunderwhichthenamed insured assumes the tort liability of another party to pay compensatorydamages forbodilyinjury,propertydamage,environmentaldamageoremergencyresponseexpense,toathirdpersonororganization,providedthatsuchwrittencontractorwrittenagreementissignedbythenamedinsuredpriortothebodily injury,propertydamage,environmentaldamageoremergencyresponseexpense. Tort liabilitymeansa liabilitythatwouldbe imposedby lawintheabsenceofanycontractoragreement.

17. Leased worker means a person leased to you by a labor leasing firm under an agreementbetween you and the labor leasing firm, to perform duties related to the conduct of yourbusiness.Leasedworkerdoesnotincludeatemporaryworker.

18. Locationmeanspremisesinvolvingthesameorconnectinglots,orpremiseswhoseconnectionisinterruptedonlybyastreet,roadway,waterwayorright-of-wayofarailroad.

19. Microbialmattermeansfungi,mould,bacteriaorviruseswhichreproducethroughthesplittingofcells,thereleaseofsporesorbyanyothermeans,whetherornotsuchmicrobialmatter isliving.

20. Misdeliverymeans the delivery of any liquid product into a wrong receptacle or to a wrongaddressortheerroneousdeliveryofoneliquidproductforanother.

21. Mitigationexpensemeansthecostandexpenseincurredbytheinsuredinconnectionwithanact,errororomissionintheperformanceoforfailuretoperformprofessionalservices:


a. Thatisdeemedbyus,tobereasonableandnecessarytopreventprofessionaldamages;and

b. That reduce or avoids the insured’s potential liability to third parties for professionaldamages covered under SECTION 1 – INSURING AGREEMENTS, 1.a. ContractorProfessionalLiability;and

c. That includes, but is not limited to, third-party consultation regarding disputed designflaws,additionalreviewsandinspections,forensicanalysisofdesigns,andanyothercoststoremedythedeficiency;and

d. Whichinthesolediscretionofuswillpreventafutureclaim.

Mitigationexpensedoesnotinclude:overhead,mark-up,profitorcostorexpenseincurredbythe insured for materials supplied or services performed by the insured, unless such costs,chargesorexpensesareincurredwithourpriorwrittenconsent.

22. Mouldmeansanyofthevariousfungiresponsibleforthedisintegrationoforganicorinorganicmatter,orthegrowthofsuchfungi.

23. NamedinsuredmeansthepersonorentitynamedinItem1AoftheScheduleandisresponsiblefor acting on behalf of all other insureds, if any, under this Policy as described SECTION 5 –CONDITIONS,paragraph10,SoleAgent.

24. Naturalresourcedamagemeansphysicalinjurytoordestructionof,includingtheresultinglossofvalueof,land,fish,wildlife,biota,air,water,groundwater,drinkingwatersupplies,andothersuch resources belonging to, managed by, held in trust by, appertaining to, or otherwisecontrolledbythegovernmentagencyordepartmentwherethepollutionincidentoccurredorwherethepollutionincidentmigratedto.

25. Non-ownedsitemeansanysiteor locationusedbythe insured forthepurposeoftreatment,storage,disposal,recyclingorprocessingofwasteormaterialprovidedthat:

a. Thesiteorlocationisnotowned,leased,managedoroperatedbytheinsured;and

b. Thewasteormaterialwasgeneratedfromyourworkduringthepolicyperiod.

Non-ownedsitedoesnotinclude:

(1) Any site or location which is not licensed by the appropriate state or federalauthority to perform storage, disposal, processing or treatment of waste from youroperationsoryourworkincompliancewithenvironmentallaw;or

(2)Anysiteorlocationoranypartthereofthathasbeensubjecttoaconsentorderorcorrectiveactionunderenvironmentallawpriortowastefromyouroperationsoryourworkbeing legallyconsignedfordeliveryordeliveredforstorage,disposal,processingortreatment.

26. Occurrencemeansaneventorcircumstance,includingthecontinuousorrepeatedexposuretosubstantiallythesamegeneralconditions,thatprecipitatesandresultsinapollutionincident.

27. Policy periodmeans the period of time as shown in Item 2 of the Schedule, however, if thePolicy iscancelledinaccordancewithSECTION5–CONDITIONS,paragraph5, Cancellation,of


thisPolicy,thepolicyperiodendsontheeffectivedateofsuchcancellation.

28. Pollutionincidentmeans:

a. Thedischarge,emission,seepage,migration,dispersal,releaseorescapeofanypollutantsintoorupon land,orany structureon land, theatmosphere including indoorairoranywatercourse or body ofwater including groundwater, provided such conditions are notnaturallypresentintheenvironmentintheconcentrationoramountsdiscovered;

b. Thepresenceofmicrobialmatteron,atorwithinbuildingsorstructures;

c.Misdelivery;and

d. The presence of pollutants that have been illegally disposed of or abandoned at yourinsured location or at a project site by parties other than the insured provided suchdisposalorabandonmentareunknowntotheinsured.

29. Pollutantsmeansanysolid,liquid,gaseousorthermalirritantorcontaminant,including:smoke,vapors, soot, fumes, acids, alkalis, chemicals, hazardous substances, petroleumhydrocarbons;low level radioactive waste andmaterial;microbialmatter; legionella pneumophila;medical,infectiousandpathologicalwaste;wastematerials;andelectromagneticfields.

30. Professionaldamagesmeans:

a. Monetaryjudgment,awardsorsettlementofcompensatorydamages;

b. Punitive, exemplary ormultiplied damages for which the insured is legally liable butonlywhereinsurancecoverageforsuchfinesandpenaltiesisallowablebylaw;

c. Civilfines,penalties,assessedagainstathirdpartyotherthantheinsuredforwhichtheinsuredislegallyliablebutonlywhereinsurancecoverageforsuchfinesandpenaltiesisallowablebylaw;and

d. Civilfinesandpenaltiesassessedagainsttheinsuredbutonlywhereinsurancecoverageforsuchfinesandpenaltiesisallowablebylaw.

Professionaldamagesdoesnotinclude:

(1)Injunctiveorequitablerelief;

(2)Thereturnoffeesorchargesforservicesrendered;

(3)Costsandexpenses incurredbythe insured toredo,change,supplementorfixtheinsured’sworkorservices,includingredesign;or;

(4)Anyoftheinsured’soverhead,mark-uporprofit.

31. Professionalservicesmeansthoseservicesandactivitiesshown in Item1Cof theScheduleorspecificallydefinedbyendorsementthatarerenderedbyoronbehalfofthenamedinsured.

a. Professional services include ordinary technology services provided for others in thecourse of rendering professional services described above. Such technology servicesinclude the design, development, programming, analysis, training, use, hosting,management, support and maintenance of any building information management,software,database,internetservice,orwebsite.


32. Projectsitemeans:

a. Thelocationwhereyourworkisperformed;or

b. A site that is rentedor leasedby youor loaned to youandutilized indirect supportofyourworkforaspecificcontractorproject.

Projectsitedoesnotincludeyourinsuredlocation.

33. Propertydamagemeans:

a. Physical injurytoordestructionoftangibleproperty,otherthanthe insured’s, includingtheresultinglossofuseanddiminishedvalueofthatproperty;

b. Lossofuseordiminishedvalueoftangiblepropertyofparties,otherthanthe insured’s,thathasnotbeenphysicallyinjuredordestroyedor

c. Naturalresourcedamage.

Propertydamagedoesnotincludeclean-upcostsorenvironmentaldamage.

For the purpose of this insurance, electronic data is not tangible property. As used in thisdefinition,electronicdatameansinformation,factsorprogramsstoredasoron,createdorusedon,ortransmittedtoorfromcomputersoftware,includingsystemsandapplicationssoftware,hardorfloppydisks,CD-ROMS,tapes,drives,cells,dataprocessingdevicesoranyothermediawhichareusedwithelectronicallycontrolledequipment.

34. Responsible manager means any of your officers, directors, partners or managers, yourmanager or supervisor responsible for health and safety or environmental affairs, control orcomplianceoranyotheremployeeauthorizedbyyoutogiveorreceivenoticeofanoccurrenceorclaim.

35. Restorationcostsmeans reasonableandnecessaryexpenses incurredbyan insured,withourwritten consent, to repair or replace damaged real or personal property to substantially thesame condition it was in prior to being damaged because of clean-up costs. If repair orreplacementresults inkindorqualityexceedingthatoftherealorpersonalpropertybeforeitwasdamaged,whetheratyouroptionornot,wewillnotpayfortheamountofthebetterment.

36. RetroactivedatemeanstheapplicablecoveragesectiondatesetforthinItem6oftheScheduleandfromwhichcoverageasprovidedhereinfirstbegins.

37. Temporary worker means a person who is furnished to you to substitute for a permanentworkeronleaveortomeetseasonalorshort-termworkloadconditions.

38. Transportationmeansthemovement,viaaconveyance,ofgoods,materials,product,orwastewhich is a result ofworkor operations insuredunder this Policy.Transportation includes themovementfromthepointoforiginuntilthefinaldestinationandanyloadingandunloadingofsuchgoods,materials,productorwasteinto,ontoorfromsuchconveyance.

39. Underground storage tankmeans any tank that has at least ten (10) percent of its volumebelow ground at inception of the policy period, or installed thereafter including associatedundergroundpipingandapparatusconnectedtothetank.

40. Yourworkmeans:


a. Contractingservices,workoroperationsasstatedintheapplicationorbyendorsementperformedbytheinsuredoronbehalfoftheinsuredataprojectsite;and

b. Goods, materials, products or equipment furnished in connection with such work oroperations.

41. Your insured locationmeans any real property or location owned, leased or rented by thenamedinsuredanddisclosedintheApplicationorQuestionnaire,orboth,orotherinformationsubmittedtousthatformsthebasisofcoverage,oralocationapprovedbyusandlistedintheYour location Schedule endorsed on to this Policy. Your insured location does not includeprojectsite.

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