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Retroactive Date: <br />If no entry appears above with respect to the Retroactive Date, then the Retroactive Date will <br />be the Policy Period inception date. <br />B.The following is added to SECTION I – COVERAGES is added: <br />COVERAGE D – MANUFACTURER’S ERRORS AND OMISSIONS COVERAGE <br />1.Insuring Agreement <br />a.We will pay those sums that the insured becomes legally obligated to pay as <br />“damages” because of a “claim” for “loss of use”, first made against any insured <br />and reported to us during the policy period, to which this insurance applies. <br />“Loss of use” must be sustained by your customer but only if such “loss of use” <br />is the result of the failure of “your product” to meet the level of performance, <br />quality, fitness or durability represented by you, after: <br />(1)Any testing and inspection by you or others at your direction; and <br />(2)Final acceptance by the customer; <br />because of an “error or omission” to which this insurance applies. <br />We will have the right and duty to defend the insured against any “claim” <br />seeking those “damages” because of “loss of use” to which this insurance <br />applies. However, we will have no duty to defend the insured against any <br />“claim” seeking “damages” to which this insurance does not apply. We may at <br />our discretion investigate or settle any claim or “suit” that may result. But: <br />(1)The amount we will pay for “damages” and “defense costs” is limited as <br />described below in LIMITS OF INSURANCE (SECTION III); and <br />(2)Our right and duty to defend ends when we have used up the applicable <br />Limit of Insurance in the payment of “damages” and “defense costs”. <br />Upon the exhaustion of the Limit of Insurance by payment of “damages”, <br />we may tender the defense of any pending “claim” to you. You must <br />then defend the “claim” at your own expense. You also must reimburse <br />us for any reasonable expense that we incur to protect your interest after <br />the Limits of Insurance are exhausted. <br />No other obligation or liability to pay sums or perform acts or services is <br />covered. <br />b.This insurance applies only if: <br />(1)The “error or omission” takes place in the “coverage territory”; <br />(2)The “error or omission” did not commence before the Retroactive Date <br />shown in the Schedule above or after the end of the policy period; and <br />(3)A “claim” is first made against any insured during the policy period and <br />reported to us during the policy period or during the Extended Reporting <br />Period, described in paragraph c. below and reported to us pursuant to <br />paragraph E. below; <br />00 GL0793 00 12 16Includes copyright material of Insurance Services Office, Inc., Page 6 of 11 <br />with its permission. <br />INSURED COPY <br /> <br />