Summary: AAIS, the American Association of Insurance Services, has developed two farm umbrella policies, a personal umbrella liability coverage form and a commercial umbrella liability coverage form. This treatment looks at the commercial farm umbrella liability policy, UM 0610. It highlights the differences between the personal and commercial forms; that is, only the different clauses and phrases will be reprinted here.
Introduction
The AAIS farm umbrella program is designed to be used with the AAIS farmowners program, and includes the following:
1. Personal umbrella liability coverage form (farm), UM 0002. This form adds umbrella coverage over an AAIS personal (farm) liability form (GL-2).
2. Commercial umbrella liability form (farm), UM 0610. This form adds umbrella coverage over an AAIS commercial (farm premises and operations) liability form (GL-610). It can be endorsed to add personal umbrella liability coverage for individuals or families that reside on the farm premises.
The AAIS umbrella does not include coverage for automobile no-fault, uninsured motorists, underinsured motorists, or similar coverage, unless required by state law. In those states, endorsements are available to provide the coverage.
The commercial umbrella has a basic limit of $1 million, with higher limits available; and is also subject to a general aggregate limit and a products/completed work hazard aggregate limit.
The commercial umbrella requires the following minimum underlying limits:
Farm liability: $300,000 per occurrence combined single limit;
Comprehensive personal/commercial farm auto: $500,000 per occurrence combined single limit or $500,000 bodily injury per person limit; $500,000 bodily injury per occurrence limit; and $100,000 property damage per occurrence limit;
Heavy trucks (over 35,000 gross vehicle weight), farm tractor trailers, motor homes, or other licensed motor vehicles: refer to company for minimum underlying limits;
Unlicensed recreational vehicles: $300,000 per occurrence combined single limit;
Watercraft: $300,000 per occurrence combined single limit.
Like the personal farm umbrella, the AAIS commercial farm umbrella (UM 0610) provides excess and drop-down coverages. It also provides personal and advertising liability coverage. It is appropriate for farms that are owned and operated by a corporation, partnership, or other type of commercial entity. The personal exposures of individuals and families who reside on a commercial farm may be picked up by adding endorsement GL-9 and UM 0009. Since much of the language in the commercial umbrella is identical to the personal umbrella, this treatment will focus on where the language differs.
The commercial umbrella liability form also provides standard bodily injury/property damage liability coverage above the limits of the underlying GL policy or the self-insured retention. It covers occurrences that arise out of farming activities on the insured premises and related operations. It also provides coverage for personal/advertising injury liability, but only to the extent that these coverages are provided by the underlying policy.
Definitions
DEFINITIONS
3. ”Advertising injury” means injury, other than “bodily injury,” “personal injury,” or “property damage” arising out of one or more of the following offenses:
a. oral or written publication of material:
1) that slanders or libels a person or organization;
2) that disparages a person's or organization's goods, products, or services; or
3) that violates a person's right of privacy;
b. misappropriation of advertising ideas or style of doing business; or
c. infringement of copyright, title, slogan, trademark, or trade name.
5. ”Damages” means compensation in the form of money for a person who claims to have suffered an injury.
8. Except as stated within this definition, “insured” means all persons or entities covered by “underlying insurance.” Each such person or entity is a separate “insured,” but this does not increase “our” “limit.” No person is an “insured” while using a “motorized vehicle” or watercraft unless that person has a reasonable expectation that he or she has a right to such use.
9. ”Insured premises” means all premises covered by “underlying insurance.”
12. ”Motor vehicle” means a “motorized vehicle,” a trailer, or a semi-trailer and all attached machinery or equipment, if:
a. it is subject to “motor vehicle” registration; or
b. it is designed for use on public roads.
14. ”Personal injury” means injury, other than “advertising injury,” “bodily injury,” or “property damage,” arising out of one or more of the following offenses:
a. oral or written publication of material:
1) that slanders or libels a person or organization;
2) that disparages a person's or an organization's goods, products, or services; or
3) that violates a person's right of privacy;
b. false arrest, detention, or imprisonment;
c. malicious prosecution; or
d. wrongful entry into, wrongful eviction from, or invasion of the right of private occupancy of a room, dwelling, or premises that a person occupies. This offense must be committed by or on behalf of the owner, landlord, or lessor of the room, dwelling, or premises.
16. ”Products/completed work hazard”
a. ”Products hazard” means “bodily injury” or “property damage” arising out of “products” after physical possession of the “products” has been relinquished to others.
b. ”Completed work hazard” means “bodily injury” or “property damage” arising out of “your work.” It does not include work that has not been completed, or that has not been abandoned.
”Your work” is deemed completed at the earliest of the following times:
1) when all work specified in “your” contract has been done;
2) when all work to be done at a job site has been completed if “your” contract includes work at more than one site; or
3) when “your work” at a job site has been put to its intended use by someone other than another contractor or subcontractor working on the same job site.
Work which requires further service, maintenance, correction, repair, or replacement because of a defect or deficiency, but which is otherwise complete, will be deemed completed.
c. Neither of these hazards includes “bodily injury” or “property damage” arising out of:
1) the transportation of property, unless the injury or damage arises out of a condition in or on a vehicle, created by loading or unloading;
2) the presence of tools, uninstalled equipment, or abandoned or unused materials; or
3) ”products” or work for which the classification on the “declarations” specifies 'including Products/Completed Work'.
17. ”Products” means goods or products manufactured, sold, handled, distributed, or disposed of by “you,” others trading under “your” name, or a person or organization whose business or assets “you” have acquired.
”Products” includes:
a. warranties or representations made at any time with respect to the fitness, quality, durability, or performance of “products;”
b. containers (other than vehicles), materials, parts, or equipment furnished in connection with “products;” and
c. providing or failing to provide warnings or instructions.
”Products” does not include vending machines or other property that is rented to or placed for the use of others, but not sold; or real property.
18. ”Property damage” means:
a. physical injury or destruction of tangible property; or
b. the loss of use of tangible property whether or not it is physically damaged. Loss of use is deemed to occur at the time of the “occurrence” that caused it.
23. ”Your work” means:
a. work or operations performed by “you” or on “your” behalf;
b. materials, parts, and equipment supplied for such work or operations;
c. written warranties or representations made at any time regarding quality, fitness, durability, or performance of any of the foregoing; and
d. providing or failing to provide warnings or instructions.
Analysis
While most of the definitions in the commercial umbrella are the same as in the personal form, the commercial form has some additional ones, such as advertising injury, damages, and products/completed work hazard. These added definitions reflect the broader coverage often required by a commercial farm.
Advertising injury means injury, other than bodily injury, personal injury, or property damage arising out of slander or libel, misappropriation of advertising ideas or style of doing business, or infringement of copyright, title, slogan, trademark, or trade name. These are offenses that a farm business, as any other business, would face in its day-to-day commercial transactions and so, liability insurance is needed to address the risk exposures.
Damages are compensation in the form of money for a person who claims to have suffered an injury due to the negligence of the insured, which includes all persons or entities covered by the underlying insurance.
Products/completed work hazard is divided into the two parts, products hazard and completed works hazard. Both refer to bodily injury or property damage arising out of the products (products hazard) or work (completed work hazard) of the named insured after the named insured has relinquished physical possession of the product or completed his work.
Principal Coverage
PRINCIPAL COVERAGE
“We” pay, up to “our” “limit,” all sums for which an “insured” is liable by law because of “advertising injury,” “bodily injury,” “personal injury,” or “property damage” to which this Commercial Umbrella Liability Coverage applies.
No other obligation or liability to pay sums or perform acts or services is covered unless explicitly provided for under Defense Coverage.
Subject to the Exclusions, this insurance applies only to:
1. ”bodily injury” and “property damage” that occurs during the policy period and is caused by an “occurrence” that arises out of:
a. the ownership, maintenance, or use of the “insured premises” or operations that are necessary or incidental to the “insured premises;” or
b. the ownership, operation, maintenance, use, occupancy, renting, loaning, entrusting, supervision, loading, or unloading of a “motor vehicle,” but only to the extent that the “bodily injury” or “property damage” is covered by “underlying insurance” at the time of the “occurrence” and is not otherwise excluded by this policy; and
2. ”advertising injury” and “personal injury” if the offense was committed during the policy period, but only to the extent that the “advertising injury” or “personal injury” is covered by “underlying insurance” at the time of the offense and is not otherwise excluded by this policy.
Analysis
As with the personal umbrella, AAIS divides its commercial umbrella form into principal and defense coverages. The policy pays for advertising injury, bodily injury, personal injury, and property damage. As this policy is an occurrence type policy, BI and PD are covered for occurrences during the policy period; AI and PI are covered for offenses committed during the policy period. Note that, if an underlying policy does not cover an occurrence of BI or PD, but the umbrella does not exclude it, the umbrella drops down to pick up coverage for that occurrence; however, AI and PI are not subject to the drop down feature.
Defense Coverage
The defense coverage offered by the AAIS commercial umbrella is identical to that offered by the personal umbrella, namely, the insurer pledges to defend, investigate, and settle any claim or lawsuit seeking damages covered by the umbrella policy. The umbrella insurer also reserves to itself the right to participate with the insured and with any underlying insurer or other insurer in the defense, investigation, and settlement of any claim or lawsuit which, in the opinion of the umbrella insurer, may involve damages to which the umbrella policy may apply.
In the defense insuring agreement, the insurer states that it has the duty to defend any claim or lawsuit seeking damages to which the umbrella insurance applies, but only under certain conditions. This agreement applies only with respect to damages not covered by underlying insurance, or any other valid and collectible insurance available to the insured; or to damages covered by underlying insurance or any other valid and collectible insurance available to the insured except for exhaustion of a limit by the payment of losses. This duty to defend ends when the insurer has paid an amount equal to the limit of insurance on the umbrella policy. Costs associated with a defense are also paid by the umbrella insurer.
Exclusions
EXCLUSIONS
“We” do not pay for a loss if one or more of the following excluded events apply to the loss, regardless of other causes or events that contribute to or aggravate the loss, whether such causes or events act to produce the loss before, at the same time as, or after the excluded event.
EXCLUSIONS THAT APPLY TO BODILY INJURY AND/OR PROPERTY DAMAGE
9. ”We” do not pay for “bodily injury” or “property damage” for which any “insured” may be held liable by reason of:
a. causing or contributing to the intoxication of a person;
b. the furnishing of alcoholic beverages to a person under the influence of alcohol or under the legal drinking age; or
c. a law or regulation relating to the sale, gift, distribution, or use of alcoholic beverages.
This exclusion applies if “you” are in the business of manufacturing, distributing, selling, or serving alcoholic beverages.
15. ”We” do not pay for “bodily injury” or “property damage” that arises out of the ownership, use, or maintenance of:
a. farm tools, farm tractors and trailers, or draft animals, including vehicles used with such animals, under contract to others for a charge;
b. draft animals, including vehicles used with such animals, for route delivery purposes;
c. saddle animals while they are rented to others by or for an “insured;” or
d. an animal in, or in the practice or preparation for, any prearranged racing, speed, pulling or pushing, or stunt activities or contests. This item, 14.d., applies only to “occurrences” that take place at the location designated for the contest or activity.
However, this exclusion does not apply to the extent that such “bodily injury” or “property damage” is covered by “underlying insurance” at the time of the “occurrence.”
18. ”We” do not pay for the liability of an employee for:
a. ”bodily injury” to “you” or another employee; or
b. damage to property owned by, rented to, or loaned to other employees or any of “your” partners or members and their spouses (if “you” are a joint venture or a partnership).
However, this exclusion does not apply to the extent that such “bodily injury” or “property damage” is covered by “underlying insurance” at the time of the “occurrence.”
ADDITIONAL EXCLUSIONS THAT APPLY ONLY TO PROPERTY DAMAGE
2. ”We” do not pay for “property damage” to premises “you” sell, give away, or abandon, if the “property damage” arises out of any part of those premises.
3. ”We” do not pay for “property damage” to property used by or loaned to “you.” However, this exclusion does not apply to liability assumed under a written sidetrack agreement.
4. ”We” do not pay for “property damage” to either business or non-business personal property in the care, custody, or control of an “insured.” However, this exclusion does not apply to liability assumed under a written sidetrack agreement.
5. ”We” do not pay for “property damage” to that specific part of any property that must be restored, repaired, or replaced because of faults in “your work.” However, this exclusion does not apply to the extent that such “property damage” is covered by “underlying insurance” at the time of the “occurrence.”
6. ”We” do not pay for “property damage” to “products” if the damage arises out of the “products” or their parts.
7. ”We” do not pay for “property damage” to “your work” if the “property damage” arises out of “your work” and is included in the “products/completed work hazard.” However, this exclusion does not apply to the extent that such “property damage” is covered by “underlying insurance” at the time of the “occurrence.”
8. ”We” do not pay for “property damage” to property that has not been physically injured or destroyed or to impaired property that arises out of:
a. a delay or failure to perform a contract by “you” or one acting on “your” behalf; or
b. a defect, deficiency, inadequacy, or unsafe condition in “your work” or “products.”
However, this exclusion does not apply to “property damage” that is covered by “underlying insurance” at the time of the “occurrence.”
9. ”We” do not pay for any loss or expense incurred by “you” or anyone else arising out of the loss of use, disposal, withdrawal, recall, inspection, repair, replacement, adjustment, or removal (including any expenses involved in the withdrawal or recall) of “your work,” “products,” or impaired property. This applies when the loss of use, disposal, withdrawal, recall, inspection, repair, replacement, adjustment, or removal was because of a known or suspected defect, deficiency, or unsafe condition.
ADDITIONAL EXCLUSIONS THAT APPLY ONLY TO ADVERTISING INJURY AND/OR PERSONAL INJURY
The following additional exclusions apply to coverage for “advertising injury” and/or “personal injury” when provided under the “terms” of this Commercial Umbrella Liability Coverage:
1. ”We” do not pay for “advertising injury” or “personal injury” arising out of lead in any form.
2. ”We” do not pay for “personal injury” that arises out of any:
a. refusal to employ;
b. termination of employment;
c. coercion, demotion, evaluation, reassignment, discipline, defamation, harassment, humiliation, discrimination, sexual misconduct, or other employment-related practices, policies, acts, errors, or omissions; or
d. consequential “personal injury” as a result of 2.a., 2.b., or 2.c. above.
This exclusion applies where the “insured” is liable either as an employer or in any other capacity; or there is an obligation to fully or partially reimburse a third party for “damages” arising out of 2.a., 2.b., 2.c., or 2.d. above.
3. ”We” do not pay for the liability of an employee for “personal injury” to “you” or another employee.
However, this exclusion does not apply to the extent that such “personal injury” is covered by “underlying insurance” at the time of the offense.
Analysis
There are two sets of exclusions that apply in the commercial umbrella liability policy. Although arranged differently, many of the exclusions that apply to bodily injury and property damage in the commercial farm umbrella are identical to those in the personal farm umbrella:
1. Expected or intended injury or damage;
2. Liability assumed in a contract or agreement;
3. Professional services;
4. Motorized vehicles in speed, pushing, etc. contests;
5. Ownership, maintenance, use, or rental of the premises for purposes other than farming;
6. Ownership, maintenance, or use of motorized vehicles, watercraft, or aircraft. Motorized vehicles and watercraft are covered if covered by the underlying policies;
7. BI to employees and consequential BI to employees' family members;
8. Pollution;
9. Workers compensation;
10. War;
11. Discharge from an aircraft;
12. Custom farm work;
13. Employment practices;
14. Lead;
15. Property owned by, occupied by, or rented to the insured.
The following are BI/PD exclusions that differ in the commercial umbrella from the personal umbrella:
1. The commercial umbrella contains a dram shop exclusion that removes coverage for liability arising out of furnishing liquor to another party. However, the exclusion applies only if the insured is in that business.
2. The commercial umbrella contains a rather lengthy exclusion of different types of farm liabilities arising out of things such as farm tools, tractors, draft animals, draft animals used for route delivery, saddle animals rented to others, and animals used in speed or other contests. However, the policy does cover these events to the extent that they are covered in the underlying policies.
3. The commercial umbrella excludes injury to the named insured and employees. It also excludes coverage for damage to property that the insured owns or has in his control. This exclusion also applies to employees, members, and spouses. Again, however, the exclusion does not apply to the extent that these occurrences are covered in the underlying policies.
The following are PD exclusions that differ in the commercial umbrella from the personal umbrella:
1. Care, custody, or control. There is no exception for fire.
2. Alienated premises. This exclusion is not included in the personal form.
3. Property used by or loaned to the insured. The commercial umbrella has no exception for fire, but it does except liability assumed under a written sidetrack agreement.
4. Restoration of property worked upon by the named insured. The form does cover such restoration to the extent that the underlying policies may cover it.
5. PD arising out of products. While the personal umbrella limits this exclusion to PD arising out of the insured's own products, the commercial umbrella applies it to any products.
6. PD to the insured's work. However, this exclusion does not apply to the extent of the underlying coverage. The commercial umbrella also makes an exception for property damage that is covered by underlying insurance at the time of the occurrence.
7. PD to property not injured or to impaired property due to the insured's delay in performing a contract, or to an unsafe condition in the insured's work. This exclusion does not appear in the personal umbrella form.
8. Recall of products (aka, sistership). This exclusion does not appear in the personal umbrella form.
The commercial umbrella adds the following as excluded under advertising injury:
1. Liability arising out of lead in any form.
2. Employment practices.
3. Injury to the named insured or another employee. However, this exclusion does not apply to the extent of the underlying coverage.
Insured's Duties
This section is identical to the AAIS personal farm umbrella. There is the duty of the insured to cooperate with the insurers that write the underlying policies, and also the duty of the named insured to see to it that the umbrella insurer receives notice as soon as practical of an occurrence or an offense to which the umbrella insurance may apply. And, of course, the insured must cooperate with the insurer in performing all acts required by the policy, and the insured may not make any payments on his own, nor may he offer rewards or assume obligations, other than at his own expense.
Insurer's Limit of Liability
HOW MUCH WE PAY
1. The “limit” shown on the “declarations” for this Personal Umbrella Liability Coverage is the most “we” pay for loss for each “occurrence” or offense. This applies regardless of the number of:
a. persons or entities insured under this policy;
b. parties who sustain injury or damage;
c. claims made or “suits” brought; or
d. vehicles or watercraft involved in an accident.
2. The Commercial Umbrella Liability Coverage General Aggregate Limit is the most “we” will pay during a policy period for the sum of all “damages,” except for “damages” due to “bodily injury” or “property damage”:
a. included in the “products/completed work hazard;” or
b. arising out of any “motor vehicle.”
3. The Commercial Umbrella Liability Coverage Products/Completed Work Hazard Aggregate Limit is the most “we” will pay during a policy period for “damages” due to “bodily injury” or “property damage” included in the “products/completed work hazard.”
4. The Commercial Umbrella Liability Coverage Each Occurrence Limit, subject to the General Aggregate Limit and the Products/Completed Work Hazard Aggregate Limit, is the most “we” will pay for the total of all “damages” due to all “advertising injury,” “bodily injury,” “personal injury,” and “property damage” arising out of a single “occurrence” or offense.
The Commercial Umbrella Liability Coverage General Aggregate Limit and the Commercial Umbrella Liability Coverage Products/Completed Work Hazard Aggregate Limit apply separately to each consecutive twelve-month period beginning with the inception date shown on the “declarations” for this Commercial Umbrella Liability Coverage. They also apply separately to any remaining policy period of less than twelve months, unless the Commercial Umbrella Liability Coverage has been extended after it was written. In that case, the additional period will be considered part of the last preceding period for the purpose of determining “limits.”
Analysis
The first paragraph of this condition is identical to the personal umbrella and is standard liability policy language.
However, the commercial umbrella also adds paragraphs regarding the general aggregate limit and the products/completed work aggregate limit, paragraphs that create two separate aggregate limits in the umbrella policy. The general aggregate limit is the most the insurer will pay for all damages in any one policy term, except for damages due to BI or PD included in the products/completed work hazard, or arising out of any motor vehicle.
The umbrella policy also has an each occurrence limit.
Excess Insurance
This section is identical to that in the AAIS personal farm umbrella.
This policy is intended to be excess over any underlying coverage that the insured has. It is excess whether or not the underlying insurance is valid and collectible. If no underlying insurance is available to the insured, then the umbrella policy covers the loss, subject to the limit retained by the insured. This is the “drop down” feature of the umbrella policy. However, the umbrella policy does not drop down if the underlying insurer becomes bankrupt or if the insured fails to maintain underlying coverage.
If the insured does fail to maintain underlying insurance as required, or if the underlying insurer does declare bankruptcy, the insurance provided by the umbrella policy will not replace the underlying insurance, but will apply as if the underlying insurance were valid and collectible. In other words, the umbrella policy will not become operative until and unless the damages owed by the insured exceed the limits of insurance that were on the underlying liability policy, and then, only that excess amount will be paid by the umbrella insurer; the duty to pay the limit of insurance that is scheduled in the underlying insurance policy becomes the obligation of the insured.
Conditions
This section of the AAIS commercial farm umbrella lays out the general policy conditions. They are identical to the general policy conditions found in the personal umbrella form. There are eleven conditions and they deal with bankruptcy of an insured, cancellation and nonrenewal, legal action against the insurer, inspections, and subrogation, all standard conditions found on an insurance policy.
The umbrella policy does note in this conditions section that if an underlying insurer elects not to appeal a judgment in excess of the limit of any underlying insurance, the umbrella insurer may elect to make such an appeal, at its own expense. The policy also notes that any policy terms that are in conflict with the laws of the state where the premises described in the dec page is located are changed to conform to such laws.
The conditions section of the policy also has the requirement that the named insured must maintain the underlying insurance in full force and effect during the term of the umbrella policy. As noted previously, if the insured does not maintain the underlying insurance, any loss will be adjusted as if that underlying limit were in force. Of course, the reduction of any underlying policy's aggregate limit due to payment of claims is not considered a failure to maintain the underlying insurance.
Nuclear Exclusion
This insurance does not apply:
1. under any liability coverage, to “bodily injury” or “property damage”:
a. with respect to which an “insured” under the policy is also an “insured” under a Nuclear Energy Liability policy issued by Nuclear Energy Liability Insurance Association, Mutual Insurance Association, Mutual Atomic Energy Liability Underwriters, Nuclear Insurance Association of Canada, or any of their successors, or would be an “insured” under any such policy but for its termination upon exhaustion of its “limit” of liability; or
b. resulting from the “hazardous properties” of “nuclear material” and with respect to which:
1) any person or organization is required to maintain financial protection pursuant to the Atomic Energy Act of 1954, or any law amendatory thereto; or
2) the “insured” is, or had this policy not been issued would be, entitled to indemnity from the United States of America or any agency thereof, under any agreement entered into by the United States of America or any agency thereof, with any person or organization.
2. under any Medical Payments coverage, to expenses incurred with respect to “bodily injury” resulting from the “hazardous properties” of “nuclear material” and arising out of the operation of a “nuclear facility” by any person or organization.
3. under any liability coverage, to “bodily injury” or “property damage” resulting from the “hazardous properties” of “nuclear material,” if:
a. the “nuclear material”:
1) is at any “nuclear facility” owned by, or operated by or on behalf of, an “insured;” or
2) has been discharged or dispersed therefrom;
b. the “nuclear material” is contained in “spent fuel” or “waste” at any time possessed, handled, used, stored, processed, transported, or disposed of by or on behalf of an “insured;” or
c. the “bodily injury” or “property damage” arises out of the furnishing by an “insured” of services, materials, parts, or equipment in connection with the planning, construction, maintenance, operation, or use of any “nuclear facility,” but if such facility is located within the United States of America, its territories or possessions, or Canada, this exclusion (c.) applies only to “property damage” to such “nuclear facility” and any property thereat.
DEFINITIONS
The following definitions apply to the Nuclear Energy Liability Exclusion:
1. ”Hazardous properties” include radioactive, toxic, or explosive properties.
2. ”Nuclear material” means “source material,” “special nuclear material,” or “by-product material.”
3. ”Source material,” “special nuclear material,” “by-product material” have the meanings given them in the Atomic Energy Act of 1954, or in any law amendatory thereof.
4. ”Spent fuel” means any fuel element or fuel component, solid or liquid, which has been used or exposed to radiation in a “nuclear reactor.”
5. ”Waste” means any “waste” material:
a. containing “by-product material” other than the tailings or “wastes” produced by the extraction or concentration of uranium or thorium from any ore processed primarily for its “source material” content; and
b. resulting from the operation by any person or organization of any “nuclear facility” included under the first two paragraphs of the definition of “nuclear facility.”
6. ”Nuclear facility” means:
a. any “nuclear reactor;”
b. any equipment or device designed or used for:
1) separating the isotopes of uranium or plutonium;
2) processing or utilizing “spent fuel;” or
3) handling, processing, or packaging “waste;”
c. any equipment or device used for the processing, fabricating, or alloying of “special nuclear material” if at any time the total amount of such material in the custody of the “insured” at the premises where such equipment or device is located consists of or contains more than 25 grams of plutonium or uranium-223 or any combination thereof, or more than 250 grams of uranium-235; or
d. any structure, basin, excavation, premises, or place prepared or used for the storage or disposal of “waste;”
and includes the site on which any of the foregoing is located, all operations conducted on such sites, and all premises used for such operations.
7. ”Nuclear reactor” means any apparatus designed or used:
a. to sustain nuclear fission in a self-supporting chain reaction; or
b. to contain a critical mass of fissionable material.
8. ”Property damage” includes all forms of radioactive contamination of property.
Analysis
The policy concludes with a lengthy nuclear exclusion that is not found in the personal umbrella form, but is rather standard for most liability insurance policies.
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