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4 Insured section C - Products liability

4.1 Products liability cover
The insurer agrees to indemnify the insured by the terms of this insured section against
legal liability to pay damages or compensation, including claimant costs recoverable from the
insured as a result of personal injury, damage, denial of access or nuisance that occurs
during the period of insurance and arising out of or in connection with a product.
4.2 Products liability defence costs

4.2.1 North American jurisdiction
Where any clause or endorsement to this policy extends cover to apply to North American
jurisdiction, the insurer agrees to indemnify the insured for defence costs but the said
defence costs count towards and are not additional to the limit of indemnity.

4.2.2 All other jurisdictions
a) For claims not involving North American jurisdiction, the insurer agrees to indemnify
the insured for defence costs but the said defence costs are payable in addition to
and do not count towards the limit of indemnity.
b) Where payment exceeding the limit of indemnity has to be made to dispose of a claim,
the insurer’s liability for defence costs shall be limited to such proportion of the said
defence costs as the limit of indemnity bears to the total amount paid to dispose of
the claim.

4.2.3 All jurisdictions
This indemnity is subject to the exclusion ‘Defence costs incurred without the insurer’s
consent’.
4.3 Products liability extensions
Not applicable to this insured section C.

4.4 Products liability limitations and exclusions
In addition to the limitations and exclusions applicable in the ‘Exclusions to insured sections
B, C, D and E’ clause, this insured section excludes and does not cover:
4.4.1 Aircraft
liability arising from any product or part thereof which, with the insured’s knowledge, is
intended to be incorporated into the structure, machinery or controls of any aircraft or other
aerial device or satellite.

4.4.2 Pollution
liability arising out of or from or brought about by or contributed to by pollution.

PPBL010121 Public Authority Combined Liability Insurance Policy (UK) Page 13 of 48