COVERAGE A–BODILY INJURY AND PROPERTY DAMAGE LIABILITY EXCLUSIONS

Intended Actions

There is no coverage for claims arising out of actions expected or intended from the standpoint of the insured. This exclusion does not apply, however, to bodily injury resulting from the use of reasonable force to protect persons or property.

Contractual Liability

The policy does not apply to bodily injury or property damage for which the insured is obligated to pay damages because liability was assumed in a contract or agreement. The exclusion does not apply, however, to liability for damages the insured assumed in an "insured contract" (defined below) or for which he or she would have been liable in the absence of the contract or agreement.

There are six types of insured contracts: lease; sidetrack agreement; easement or license except for construction or demolition activities within 50 feet of a railroad; obligation to a municipality except when doing work for the municipality; elevator maintenance agreement; and specific tort obligations.

If the contracts include a requirement that defense of assumed liability be provided, those defense costs are also paid but as part of damages. The defense costs can be paid outside of the limits if the guidelines to be so provided in the Supplementary payments are met.

Aircraft, Auto, Watercraft Exclusion

The insurance company does not pay for 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 loading and unloading. Specifically exempted from this exclusion are the following:

1. A watercraft while it is at premises owned or rented by the insured and on shore.
2. A watercraft that the insured does not own. This exception applies only when the non-owned watercraft is less than 26 feet in length and is not being used to carry persons or property for a charge.
3. The parking of an auto on or next to the premises that is owned by or rented to the insured. This applies only when the auto is not owned by, rented, or loaned to the insured. An example would be valet parking.
4. Liability assumed under any insured contract for the ownership, maintenance of or use of aircraft or watercraft.
5. The operation of mobile equipment that is mounted on an automobile or truck chassis. Examples of such equipment are cherry pickers, air compressors, and pumps.