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RECORD 2: MANUSCRIPT ENDORSEMENT NO. 14 — SPECIAL CONDITIONS & EXCLUSIONS
Endorsement Attached to and Forming Part of Policy No.: CGL-2025-HL-9941
Effective Date of Endorsement: 2025-10-01
Title: Endorsement No. 14 — Subcontractor Warranty, Water Damage Limitation, and Defense Within Limits

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

1. SUB-LIMIT & SUBCONTRACTOR WARRANTY CLAUSE
It is a condition precedent to coverage under this Policy that with respect to any work performed on behalf of the Named Insured by independent contractors or subcontractors:
a. The Named Insured must obtain a written hold harmless and indemnity agreement from the subcontractor running in favor of the Named Insured prior to commencement of any work;
b. The Named Insured must collect and verify Certificates of Insurance evidencing Commercial General Liability coverage maintained by the subcontractor with limits equal to or greater than $1,000,000 Each Occurrence, naming the Named Insured as an Additional Insured on a primary and non-contributory basis;
c. FAILURE TO SATISFY SUB-SECTIONS (a) OR (b) SHALL NULLIFY AND VOID ALL COVERAGE, INCLUDING DEFENSE AND INDEMNITY, FOR ANY CLAIM ARISING DIRECTLY OR INDIRECTLY FROM WORK PERFORMED BY SUCH SUBCONTRACTOR.

2. WATER DAMAGE EXCLUSION & WAREHOUSE EXCEPTION
Exclusion 2(k) of Coverage A is deleted and replaced with the following:
This insurance does not apply to any "property damage" arising directly or indirectly out of:
a. Flood, surface water, waves, tidal water, overflow of any body of water, or spray from any of these, whether driven by wind or not;
b. Water or water-borne material which backs up through sewers or drains or overflows from a sump or sump pump;
EXCEPTION TO EXCLUSION 2(k):
This exclusion does not apply to "property damage" occurring inside an enclosed warehouse facility owned or leased by the Named Insured, caused solely by sudden and accidental bursting or rupture of an internal municipal fire suppression sprinkler system, provided the system has undergone certified inspection within the 180 days preceding the loss.

3. DEFENSE WITHIN LIMITS (ERODING LIMITS)
Notwithstanding anything in Section I to the contrary, all Legal Expenses, investigative fees, and Defense Costs incurred by the Company shall be paid from and shall reduce the Each Occurrence and General Aggregate Limits of Insurance available under this Policy.
