PERSONAL UMBRELLA LIABILITY ENDORSEMENT For Attachment to Form 1775 This endorsement is an extension of your homeowners policy. READ THIS ENDORSEMENT CAREFULLY This endorsement provides liability insurance coverage over and above the liability coverages that you are required to maintain under your automobile, recreational vehicle, and watercraft liability insurance policies and over and above the personal liability coverages that you are required to maintain under your comprehensive personal liability policies and homeowners, renters, and other dwelling policies. This endorsement does not insure against any losses or damages which are not also insured against under one or more of those policies, with only one exception: losses or damages arising out of the use of a motor vehicle outside of the geographic scope of coverage provided by any of the primary policies and losses or damages arising out of personal injury outside of the scope of coverage provided by any of the primary policies. It is necessary for you to maintain certain types and amounts of primary insurance in force, as outlined below. LIMIT OF LIABILITY UNDER THIS ENDORSEMENT: $X,000,000 IN EXCESS OF PRIMARY INSURANCE IMPORTANT NOTICE: Please review your insurance policies to be sure that the liability limits you and other insured members of your household have in force are at least equal to those listed below. THIS ENDORSEMENT DOES NOT PROVIDE ANY COVERAGE BELOW THE LIMITS OF LIABILITY SHOWN IN THE SCHEDULE BELOW. UNDER NO CIRCUMSTANCES WILL THE COVERAGE PROVIDED BY THIS ENDORSEMENT SUBSTITUTE FOR OR REPLACE COVERAGE REQUIRED TO BE PROVIDED BY PRIMARY INSURANCE AS SET FORTH BELOW. All insureds must keep the coverages and limits shown in the schedule below in effect in order to avoid gaps in coverage. If the primary policies do not have these coverages and limits in force, insureds will be uninsured for the difference between the limits that they have in force, if any, and the limits that this schedule states are required. REQUIRED MINIMUM LIMITS OF PRIMARY INSURANCE TYPE OF COVERAGE BODILY INJURY PROPERTY DAMAGE Automobile Liability (including recreational vehicles) $250,000 per person $500,000 each occurrence or $300,000 combined single limit $100,000 each occurrence Watercraft Liability $300,000 each occurrence (included) Comprehensive Personal Liability (or the liability section of the homeowners policy) $300,000 each occurrence $500,000 each occurrence for rental properties (up to four units) (included) Page 1 of 6
AGREEMENT We hereby agree to provide the insurance coverage set forth in this endorsement in return for your payment of the applicable premium and your compliance with the provisions of this endorsement. DEFINITIONS The insurance provided under this endorsement is subject to the definitions in the homeowners policy with which it is issued, as well as the following additional definitions: 1. primary insurance, primary policy, or primary policies means the required underlying automobile, recreational vehicle, watercraft liability, comprehensive personal liability, homeowners, renters and other dwelling policies for which liability limits are shown on the required minimum limits table of this endorsement. These terms include amendments to, additions to, and policies issued in renewal or replacement of any of these policies. 2. retained limit means the greater of: A. the liability limits shown on the required minimum limits table of this endorsement, which are the minimum limits required to be maintained by you under your primary insurance ; or B. the total limits of liability of any primary policy or other insurance which applies. 3. ultimate net loss means all damages which an insured becomes legally obligated to pay pursuant to court order or to a settlement approved by us in writing because of personal injury or property damage caused by an occurrence to which this endorsement coverage applies. The amount of such damages may be the result of compromise as long as the compromise is made with our written consent. It does not include any amount which can be collected as recovery or salvage, nor does it include any loss or legal expenses incurred by you, by any primary insurers, or by us. 4. fungi means any type or form of fungus, mold, or mildew, and any mycotoxins, spores, scents or by-products produced or released by fungi. MAINTENANCE OF PRIMARY INSURANCE You must maintain primary insurance in force as long as an exposure exists during this endorsement period for: 1. any premise owned by, leased to, or furnished or available for the regular use of an insured ; 2. any automobile or recreational vehicle owned by, leased to, or furnished or available for the regular use of an insured ; and 3. any watercraft owned by, leased to, or furnished or available for the regular use of an insured. The limits and coverages in force under your primary insurance may not be less than those shown in the required minimum limits table of this endorsement. If the required coverages under your primary insurance are not in force or are uncollectible, or if their limits have been decreased below the required minimum, your coverage under this endorsement will not be void. In these cases, you will be responsible for the full limits of the liability coverages that you are required to maintain under your primary insurance and for the defense costs applicable to any loss. We will pay only the excess over, and will not under any circumstances contribute with or substitute for, the limits of the liability coverages that you are required to maintain under your primary insurance. Page 2 of 6
PERSONAL LIABILITY COVERAGE If a claim is made or a suit is brought against any insured for damages because of personal injury or property damage caused by an occurrence for which an insured is legally responsible and which is covered by the liability sections of any of the primary policies and not excluded by this endorsement, we will pay the ultimate net loss minus the retained limit up to the limit of liability shown on the first page of this endorsement; we will not provide coverage for any "occurrences" which are excluded by endorsement or any "occurrences" which are or would not be covered by the liability sections of the primary policies, with the sole exception of occurrences arising out of the use of a motor vehicle outside of the geographic scope of coverage provided by any of the primary policies. If any of the applicable primary policies are not in force at the time of the occurrence, we will determine whether the occurrence would have been covered by the primary policy by referring to the provisions of the applicable primary policy most recently in force. ADDITIONAL COVERAGES In addition to our limit of liability for Personal Liability Coverage, we shall provide the Additional Coverages shown below for an occurrence which is covered by Personal Liability Coverage and which: 1. is covered by a primary policy under which one of these Additional Coverages has been exhausted; or 2. arises out of the use of a motor vehicle outside of the geographic scope of coverage provided by any of the primary policies. We shall: 1. pay all premiums on appeal bonds required in any suit we defend, provided that we shall have no obligation to apply for or furnish such bonds; 2. pay all premiums on bonds to release attachments for any amount up to your limit of liability, provided that we shall have no obligation to apply for or furnish such bonds; 3. pay all expenses incurred by us; 4. pay all interest accruing after a judgment has been entered in a suit we defend, provided that we shall not pay interest after we have paid that part of the judgment equal to our limit of liability; 5. reimburse insureds for any earnings lost while assisting us in the investigation or defense of a claim or suit at our request, but not in excess of $250 per day or a total of $5,000; and 6. reimburse insureds for other reasonable expenses incurred at our request. We shall defend with counsel of our choice any suit against an insured which seeks damages covered by Personal Liability Coverage. We shall defend even if the suit is groundless, false, or fraudulent. We may, however, investigate, negotiate, and settle any claim or suit as we wish. Our obligation to defend any claim or suit ends when the amount that we have paid for damages resulting from the occurrence equals our limit of liability. In certain countries, we may be prevented by law from carrying out this endorsement. If so, we shall pay any of the above expenses as long as they are incurred with our written consent. Page 3 of 6
EXCLUSIONS We will not provide coverage for any claim made or suit brought against an insured unless such a claim or suit would also be covered by liability coverage under the primary insurance, with the sole exception of: claims or suits arising out of the use of a motor vehicle outside of the geographic scope of coverage provided by any of the primary policies and claims or suits arising out of personal injury outside of the scope of coverage provided by any of the primary policies. All exclusions to and other limitations on liability coverages contained in the applicable policy of primary insurance shall also apply as exclusions to and other limitations on coverage under this endorsement. In addition, we will not provide coverage for any claim made or suit brought against an insured for personal injury or property damage based on, arising out of, resulting from, caused by, contributed to, or aggravated by any of the following. Coverage for such personal injury or property damage is excluded regardless of any other cause or event contributing concurrently or in any sequence to the loss. 1. uninsured or underinsured motorist coverages, no-fault benefits, or medical payments coverage as provided under any primary policies ; 2. discharge, dispersal, seepage, migration, release, or escape of pollutants, including any expense of complying with any governmental order or judgment to test for, mitigate, or eliminate such pollution or contamination; the term pollutants includes any solid, liquid, gaseous, thermal, nuclear or radioactive irritant or contaminant, including but not limited to smoke, vapor, soot, heating oil, fumes, acids, alkalis, chemicals, and waste, including but not limited to materials to be recycled, reconditioned or reclaimed; 3. civic, public or other activities performed for pay by any insured, including activities as an officer or director of any organization; 4. (A) harmful, toxic or pathological properties of lead, lead compounds, or lead contained in any materials (including but not limited to paint), including but not limited to any cost or expense to abate, mitigate, remove, or dispose of lead, lead compounds or materials containing lead and any claim arising under Chapter III of the Massachusetts General Laws; (B) any supervision, instructions, recommendations, warnings, or advice given or which should have been given in connection with part (A) above; or (C) any obligation to share damages with or repay someone else who must pay damages in connection with parts (A) and (B) above. 5. the use of motor vehicles or watercraft in racing events, including practicing for a race, whether or not organized; or 6. the ownership, maintenance, use, loading, or unloading of a watercraft: A. that is a sailing vessel, with or without auxiliary power, more than thirty-five feet in length; B. with inboard, inboard-outdrive, or outboard engine or motor power powered by more than two hundred twenty-five total horsepower; or C. that is more than twenty-six feet in length with inboard, inboard-outdrive, or outboard engine or motor power. 7. the use of a leased, loaned, hired, or borrowed motor vehicle or watercraft, except that this insurance shall apply to any claim for loss or damages for which insurance is provided by a primary policy which applies to the leased, loaned, hired, or borrowed motor vehicle. 8. the actual, alleged, or threatened inhalation of, ingestion of, contact with, exposure to, existence of, or presence of any fungi, wet or dry rot, virus, or bacteria, including without limitation any cost or expense to abate, mitigate, remove, or dispose of any fungi, wet or dry rot, virus, or bacteria or any of the products of any of them or any damage or impairment of habitability caused or alleged to have been caused by any of them. Page 4 of 6
In addition, this endorsement excludes coverage for personal injury or property damage to you or any of the following residents of your household: (i) your relatives, wards, or foster children; or (ii) anyone below the age of twenty-one under your care or the care of any other person named above. CONDITIONS The following list sets forth your responsibilities as well as ours under this endorsement. 1. Limit of Liability. The largest amount that we will pay for a single occurrence under this endorsement is the limit of liability shown on the first page of this endorsement. This limit is the same regardless of the number of insureds covered, claims made, persons injured, vehicles involved, or exposures insured. 2. Endorsement Period and Territory. This endorsement applies only to personal injury and property damage which occurs at any time during the endorsement period, provided that such personal injury or property damage is caused by an occurrence which is covered by Personal Liability Coverage and not excluded by this endorsement. 3. Duties After an Occurrence. In the event of an occurrence which may result in a claim under this endorsement, or if you receive notice of a claim or are sued in connection with an occurrence which may be covered under this endorsement, you must do the following: A. notify us or your agent in writing as soon as possible; B. provide us with all available information, including any suit papers or other documents, which relate to the occurrence or which will help us in the event that we defend you; C. take reasonable steps to prevent further loss; D. cooperate fully with us and any primary insurer in any legal defense, settlement of claims, enforcement of rights against others, attendance at hearings and trials, preservation of evidence, and identification and location of witnesses; and E. obtain our written consent before making any payments, assuming any obligations, or incurring any expenses with respect to damages covered by this endorsement. Any insured who makes any payment, assumes any obligation, or incurs any expense with respect to damages covered by this endorsement without our written consent undertakes such actions voluntarily and at the insured s own cost. 4. Our Rights. We have the right to join in or assume the defense of any suit or other legal action which may involve this endorsement, even when there is primary insurance. We may investigate, negotiate, and settle any claim or suit as we wish. We have the right, but not the obligation, to appeal a judgment in excess of the retained limit, even if the primary insurer elects not to. If we do appeal, we will pay all related expenses. 5. Legal Action Against Us. No legal action shall be brought against us: A. unless the insured has complied fully with all the terms of this endorsement; and B. until the amount of the insured s ultimate net loss in excess of the retained limit has been finally settled. This amount may be determined either by judgment against the insured or by written agreement signed by the insured, all claimants, and us. If conditions 5A and 5B above are met, the insured may then recover under this endorsement up to the extent of the insurance that it provides. Any such suit or action against us by an insured must be commenced within twelve months of the date on which the amount of the insured s ultimate net loss in excess of the retained limit has been finally settled. No one has any right under this endorsement to join us as a party to any suit or other legal action against any insured. Page 5 of 6
6. Bankruptcy of Insured. If any insured becomes bankrupt or insolvent during the period that this endorsement is in force, we shall not be relieved of our obligations under this endorsement. 7. Subrogation. All your rights of recovery relating to any payment that we make under this endorsement will become our rights to the extent of any such payment. An insured must do everything possible to secure and preserve such rights and do nothing after loss to prejudice such rights. At our request, an insured must transfer such rights to us or bring suit and help us to enforce them. 8. Death. If any person named on the Declarations Page of the policy to which this endorsement is attached, or the spouse of such a person, if a resident of the same household, dies: A. we insure the legal representative of the deceased person until this endorsement expires, but only with respect to liability arising in connection with the premises and property of the deceased person covered under this endorsement at the time of death; and B. insured includes: (1) any member of the deceased person s household who is an insured at the time of death, but only while a resident of the residence premises ; and (2) with respect to liability arising in connection with the deceased person s premises and property, the person having proper temporary custody of the premises and property until appointment and qualification of a legal representative. 9. Conformity with Statute. If any of the terms of this endorsement conflict with applicable state or local law, the terms are changed to conform to such laws. 10. Other Insurance. We will pay only the excess over, and will not contribute with or substitute for, the liability coverages that you are required to maintain under your primary insurance or any other collectible insurance that covers losses also covered by this endorsement. 11. Bankruptcy or Insolvency of Primary Insurer. If any of the primary insurers becomes bankrupt or insolvent, or enters into receivership, rehabilitation, liquidation, or other insolvency proceedings, we shall not be required to assume their obligations to you. In such an event, we shall only be liable to the extent that we would have been had the primary insurance paid its obligations in full. 12. Conflicts with Primary Policy. If any provisions of this endorsement are in conflict with any provisions of any primary policy, the provisions of this endorsement shall govern. 13. Changes. This endorsement may be changed only by our written endorsement. 14. Assignment. No insured may assign or turn over any right or interest under this endorsement without our written consent. 15. Misrepresentation. We will not provide coverage under this endorsement if you or any other insured misrepresent information to us or conceal information from us, whether before or after a loss. 16. Cancellation by You. You may cancel this endorsement by giving us advance written notice of the date cancellation is to take effect. 17. Non-Renewal. We may elect not to renew this endorsement. We may do so by delivering to you, or mailing to you at your mailing address shown on the Declarations Page of the homeowners insurance policy to which this endorsement is attached, written notice of nonrenewal at least forty-five days before the expiration date of this endorsement. Page 6 of 6