PROFESSIONAL INSURANCE PORTFOLIO - GL Portfolio (2)

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

to this section.

Death, or any bodily or mental injury or disease of any

person.

Costs incurred with our prior written agreement to

investigate, settle or defend a claim against you.

Nuisance, trespass or interference with any easement or right

of air, light, water or way.

False arrest, detention, or imprisonment; malicious

prosecution; wrongful entry into, or eviction of a person from,

a room, dwelling or premises that they occupy; invasion of

any rights of privacy.

Any pollution or contamination, including noise,

electromagnetic fields, radiation and radio waves.

Any goods supplied to others which were sold, manufactured,

repaired, installed, erected, altered, cleaned or treated by

you.

Physical loss of or injury to or destruction of tangible property

including the resulting loss of use of such property.

Mobile plant or equipment being used where insurance or

security is not required under the provisions of any road

traffic legislation.

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, as a result of your business, any party brings a claim against you for:

a.

b.

bodily injury or property damage occurring during the period of insurance;

personal injury or denial of access committed during the period of

insurance,

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

This includes a claim against any employee or volunteer worker of yours when

they are acting on your behalf in whatever capacity.

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

covered by this section.

PROFESSIONAL INSURANCE PORTFOLIO - GL Portfolio (2)

If, as a result of your business, any party brings a claim, which falls within (a)

above, against your client or customer or a distributor of your products and you

are liable for that claim, we will treat such claim as if made against you and make

the same payment to the client, customer or distributor that we would have made to

you, provided that the party to be indemnified:

a.

b.

c.

d.

has not, in our reasonable opinion, caused or contributed to the claim against

them;

accepts that we can control the claim's defence and settlement in accordance

with the terms of this section;

has not admitted liability or prejudiced the defence of the claim before we are

notified of it;

gives us the information and co-operation we reasonably require for dealing

with the claim.

If any governmental, administrative or regulatory body brings any criminal action

against you during the period of insurance for any breach of statute or regulation

directly relating to any actual or potential claim under this section, we will pay the

costs incurred with our prior written consent to defend such an action against you or

any employee of yours.

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

to:

1.

loss of or damage to any property belonging to you or which at the time of the

loss or damage is in your care, custody or control. This does not apply to:

a.

employees' or visitors' vehicles or effects while on your premises;

b.

premises, including their contents, which are not owned or rented by you,

where you are temporarily carrying out your business;

c.

premises rented to you, for loss or damage not insurable under property

insurance policies and for which you would not be liable other than by the

lease or other agreement.

2.

the ownership, possession, maintenance or use by you or on your behalf of

any aircraft or other aerial device, hovercraft, watercraft (other than hand

propelled or sailing craft less than 20 feet in length in inland or territorial

waters) or any mechanically propelled vehicles and their trailers.

This does not apply to:

a.

any tool of trade;

b.

the loading or unloading of any vehicle off the highway.

3.

bodily injury to any person arising out of and in the course of their

employment under a contract of service or apprenticeship with you.

PROFESSIONAL INSURANCE PORTFOLIO - GL Portfolio (2)

4.

a. any pollution of buildings or other structures or of water or land or the

atmosphere;

b. any bodily injury or property damage directly or indirectly caused by

pollution unless caused by a sudden, identifiable, unintended and

unexpected incident which occurs in its entirety at a specific time and

place during the period of insurance;

c. any pollution occurring in the United States of America or Canada.

5.

transmission of a computer virus.

6.

designs, plans, specifications, formulae, directions or advice prepared or given

by you for a fee.

7.

the costs of repairing, reconditioning or replacing any product or any of its

parts.

8.

a. any of your products relating to aircraft, including missiles or spacecraft,

and any ground support or control equipment used in connection with such

products;

b. any of your products installed in aircraft, including missiles or spacecraft,

or used in connection with such craft, or for tooling used in their

manufacture including ground-handling tools and equipment, training aids,

instruction manuals, blueprints, engineering or other data, advice and

services and labour relating to such craft or your products.

9.

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

dishonestly or recklessly commit, condone or ignore which could reasonably be

expected to cause injury or damage to another party even if such injury or

damage is of a different degree or type than could reasonably have been

anticipated.

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

have at law without the contract.

11. date recognition.

12. war, terrorism or nuclear risks.

13. asbestos risks.

We will not make any payment for:

1.

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

contract.

2.

fines and contractual penalties, punitive or exemplary damages.

3.

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.

PROFESSIONAL INSURANCE PORTFOLIO - GL Portfolio (2)

We will pay up to the limit of indemnity shown in the schedule for each actual or

threatened claim, unless limited below. We will also pay for defence costs. However,

if a payment greater than the limit of indemnity has to be made for a claim our liability

for defence costs will be limited to the same proportion that the limit of indemnity

bears to the amount paid. You must pay the excess for each claim.

All claims which arise from the same original cause, a single source or a repeated or

continuing shortcoming in your work will be regarded as one claim.

a.

For claims arising from your products, the most we will pay is a single limit of

indemnity for the total of all such claims. We will also pay for defence costs for

those claims until the limit of indemnity has been exhausted. You must pay the

relevant excess shown in the schedule.

b.

For claims arising from pollution, the most we will pay is a single limit of

indemnity for the total of all such claims and their defence costs, including any

claims forming part of a series of other claims regarded as one claim under

this section. You must pay the relevant excess shown in the schedule.

c.

For claims brought in the United States of America or Canada, the most we will

pay is a single limit of indemnity for the total of all such claims and their defence

costs. You must pay the relevant excess shown in the schedule.

d.

The most we will pay for the costs to defend criminal proceedings is the amount

shown in the schedule. This applies to all actions brought against you during the

period of insurance.

At any stage we can pay you the applicable limit of indemnity or what remains after

any earlier payment from that limit. We will pay defence costs already incurred at

the date of our payment. We will then have no further liability for those claims or their

defence costs.

We will not make any payment under this section:

1.

unless you notify us promptly of any claim or threatened claim against you.

2.

unless you notify us as soon as practicable of:

a.

your discovery that products are defective;

b.

any threatened criminal action by any governmental, administrative or

regulatory body.

3.

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

for what has happened or 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 will not make any payment for products claims if you fail to take reasonable

steps to remedy or rectify, at your expense, any defect or failure in the goods or

services you have supplied to a client, customer or distributor.

PROFESSIONAL INSURANCE PORTFOLIO - GL Portfolio (2)

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.