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The General Terms and Conditions and the following terms and conditions all apply

to this section.

The activities shown in the schedule, which you perform in

the course of your business.

Costs incurred with our prior written agreement to

investigate, settle or defend a claim against you.

Also includes any person who was, is or during the period of

insurance becomes your partner or director or senior

manager in actual control of your operations.

If during the period of insurance, and as a result of your business activity within

the geographical limits for clients, any party brings a claim against you for:

a.

negligence or breach of a duty of care,

b.

negligent misstatement or negligent misrepresentation,

c.

infringement of intellectual property rights including copyright, patent,

trademark, music rights, performance rights, broadcasting rights or moral rights

or any act of passing-off,

d.

defamation,

e.

dishonesty of your individual partners, directors, employees or self-employed

freelancers directly contracted to you and under your supervision,

we will indemnify you against the sums you have to pay as compensation.

We will pay defence costs but we will not pay costs for any part of a claim not

covered by this section.

If your client has reasonable grounds for being dissatisfied with the work you have

done, refuses to pay for any or all of it, including amounts you legally owe to sub-

contractors at the date of the refusal, and threatens to bring a claim against you for

more than the amount owed, it may be possible to settle the dispute with the client by

your agreeing not to press for the disputed amount. If so, we will pay you the

amount owed to you at that time if we believe that this will avoid a legitimate claim for

a greater amount and we have given our prior written approval to settling in this way

and for this amount.

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Alternatively, if it is not possible to reach agreement with the client on this basis but

we still believe that by not pressing for the disputed amount you will avoid a

legitimate claim or counterclaim for a greater amount, we will pay the amount owed

to you at that time. If a claim is still brought, we will deal with it but our total

payment, including what we have already paid you or on your behalf, will not exceed

the applicable limit of indemnity shown in the schedule. You must return the amount

we have paid if you eventually recover the debt less your reasonable expenses.

Once we agree to make this payment you will assign to us such rights as you have

in relation to the amounts owed to you.

We will not make any payment for any part of a claim not covered by this section.

If while performing your business activity you, but not your client, become aware

of anything covered by (a) to (d) above which is capable of being successfully

rectified without leading to a claim against you by that client, we will pay the

additional expenses directly incurred with our prior written consent in rectifying the

problem. We will only do this if we agree that these expenses are less than the

amount of a potential claim covered by this insurance which would have arisen if the

problem was not rectified.

If during the period of insurance any document, information, data, artwork or model

of yours which is necessary for the performance of your business activity is lost,

damaged or destroyed while in your possession, we will cover you against the cost

of restoring or replacing it.

We will not make any payment for any claim or loss directly or indirectly due

to:

1.

any investment of, or direct advice on the investment of, client funds.

2.

the outcome or operation of any game promotion, contest or lottery.

3.

anything shown or described in any advertising, educational or promotional

material which results in any adverse change in a claimant's health, lifestyle or

relationship with others.

4.

the mimicking in any way by anyone of anything shown in or described in any

advertising, educational or promotional material.

5.

any stunt or other activity during the making or production of any advertising,

educational or promotional material.

6.

breach of confidence or misuse of any information or infringement of any right

to privacy.

7.

product disparagement or breach of any comparative advertising regulations.

8.

any statement, representation or information concerning you or your

business contained in your accounts, reports or financial statements.

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9.

any obscenity, blasphemy or pornographic material.

10. any product, including alcohol, tobacco, nicotine or any pharmaceutical

product, which is, or becomes, defective, dangerous or hazardous to health in

any way.

11. your operation or administration of any pension or employee benefit scheme or

trust fund, or the sale or purchase of or dealing in any stocks, shares or

securities or the misuse of any information relating to them, or your breach of

any legislation or regulation relating to these activities.

12. your breach of any taxation, competition, restraint of trade or anti-trust

legislation or regulation.

13. any pollution or contamination, including noise, electromagnetic fields, radiation

and radio waves.

14. transmission of a computer virus.

15. your liability under any contract which is greater than the liability you would

have at law without the contract.

16. any construction or erection work.

17. the death or any bodily or mental injury or disease suffered by anyone.

18. anyone's employment with or work for you, or any breach of an obligation

owed by you as an employer or any kind of discrimination, harassment or

unfair treatment.

19. the ownership, possession or use of any land or building, any animal, any

aircraft, watercraft or any motor vehicle.

20. the loss, damage or destruction of any tangible property. This does not apply

to claims for documents in your care, custody or control in connection with a

business activity for a client or to your own loss under the cover for loss of

documents in WHAT IS COVERED.

21. the loss, damage or destruction of exposed or unexposed film, negative, prints

or sound tapes or video tapes or visual images or sound held in any media or

any library stock.

22. the loss or distortion of any data of yours held electronically.

23. the loss, damage or destruction of any bearer bonds, coupons, share

certificates, stamps, money or other negotiable paper.

24. any personal liability incurred by a director or officer of yours when acting in

that capacity or managing your business, or your breach of any fiduciary duty,

or any statement, representation or information concerning you or your

business contained in your accounts, reports or financial statements.

25. your supply, manufacture, sale, installation or maintenance of any product.

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26. any act, breach, omission or infringement you deliberately, spitefully,

dishonestly or recklessly commit, condone or ignore. This does not apply to any

claim under the dishonesty cover in WHAT IS COVERED, but we will not in any

event provide cover to any party who actually commits, condones or ignores

any dishonesty.

27. any shortcoming, or alleged shortcoming, in your work or your own loss which

you knew about, or ought reasonably to have known about, before we agreed

to insure you.

28. any shortcoming, or alleged shortcoming, in your work or your own loss which

you knew about, or ought reasonably to have known about, before we agreed

to insure you.

29. date recognition.

30. war, terrorism or nuclear risks.

31. asbestos risks.

We will not make any payment for:

1.

any claim brought by an insured within the definition of you or any party with a

financial, executive or managerial interest in you, including any parent company

or any party in which you have a financial, executive or managerial interest,

including any subsidiary company. This does not apply to a claim based on a

liability to an independent third party directly arising out of the performance of

your business activity.

2.

that part of any claim where your right of recovery is restricted by any

contract.

3.

your lost profit, mark up or liability for VAT or its equivalent.

4.

trading loss, trading liability, management time, lost time, lost business or

commissions from any other client, potential client or account.

5.

fines and contractual penalties, aggravated, punitive or exemplary damages,

and additional damages under section 97(2) of the Copyright, Designs and

Patents Act 1988 or any statutory successor to that section.

6.

any claim, including arbitration, brought outside the countries set out in the

schedule under Applicable Courts.

This applies to proceedings in the applicable courts to enforce, or which are

based on, a judgment or award from outside the applicable courts.

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The most we will pay for the total of all claims, losses and defence costs is the

single limit of indemnity shown in the schedule, irrespective of the number of claims.

You must pay the excess shown in the schedule for each claim, including defence

costs.

For lost, damaged or destroyed documents, information, data, artwork or models, we

will pay the reasonable expenses you incur with our prior written consent in restoring

or replacing them.

At any stage of a claim we can pay you the applicable limit of indemnity or what

remains after any earlier payment from that limit. This includes defence costs

already incurred at the date of our payment. We will then have no further liability for

any claim, loss or costs.

We will not make any payment under this section:

1.

unless you notify us promptly of the following within the period of insurance

or at the latest within 14 days after it expires for any problem you first become

aware of in the seven days before expiry:

a.

your first awareness of a shortcoming in your work for a client which is

likely to lead to a claim against you. This includes any criticism of your

work even though regarded by you as unjustifiable.

If we accept your notification we will regard any subsequent claim as

notified to this insurance.

b.

any claim or threatened claim against you.

c.

your discovery, or the existence of reasonable grounds for your

suspicion, that any partner, director, employee or self-employed

freelancer has acted dishonestly.

d.

your discovery that any document, information, data, artwork or model

of yours has been lost, damaged or destroyed.

2.

if, when dealing with your client or a third party, you admit that you are liable

for what has happened, make any offer, deal or payment, unless you have our

prior written agreement. You must also not reveal the amount of cover

available under this insurance, unless you had to give these details in

negotiating a contract with your client or have our prior written agreement.

We have the right, but not the obligation, to take control of and conduct in your

name, the investigation, settlement or defence of any claim. If we think it necessary

we will appoint an adjuster, solicitor or any other appropriate person to deal with the

claim. We may appoint your own solicitor but on a similar fee basis as our solicitor

and only for work done with our prior written approval. Proceedings will only be

defended if there is a reasonable prospect of success and taking into account the

commercial considerations of the costs of defence.