Page 36 - Barr&Barr_Cost Proposal

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Subguard Policy

Throughout this Policy the words "you" and "your" refer to the Insured. The words "we", "us", and "our" refer to the
company providing this insurance. Refer to Section II. DEFINITIONS of this Policy for the special meaning of words and
phrases that appear in bold.
In consideration of the payment of premium, your undertaking to pay the Each Loss Retention Amount, the Co-payment
Amount, the Retention Aggregate Amount or the Maintenance Retention Amount, if any, and in reliance upon the
statements in the Application including the Prequalification Procedures, which are deemed part of this Policy, and
subject to all terms and conditions of this Policy, we agree with you as follows:
I. INSURING AGREEMENTS

Insuring Agreement A
We will indemnify you for Loss solely attributable to a Default by your Subcontractor under any Contract, provided
that the first notice of Default is issued prior to the end of the Post-Completion Obligations Period or within six (6)
years of the date of the Contract, whichever is earlier, and your notification to us of the Default is reported to us in
writing within thirty (30) days of you issuing a first notice of Default to the Subcontractor. The amount of any
indemnification is subject to the Limits of Insurance, the Each Loss Retention Amount, the Co-payment Amount, the
Retention Aggregate Amount and the Maintenance Retention Amount, if any, as set forth in the Declarations.
Insuring Agreement B
We will indemnify you for Loss solely attributable to a Default by your Subcontractor under any Contract executed
in connection with a Project, provided that the first notice of Default is issued prior to the end of the Post-
Completion Obligations Period or within six (6) years of Project Commencement, whichever is earlier, and your
notification to us of the Default is reported to us in writing within thirty (30) days of you issuing a first Notice of Default
to the Subcontractor. The amount of any indemnification is subject to the Limits of Insurance, the Each Loss
Retention Amount, the Co-payment Amount, the Retention Aggregate Amount and the Maintenance Retention
Amount, if any, as set forth in the Declarations.
II. DEFINITIONS

When used in this Policy, the terms below (whether in the singular or plural) are defined as follows:
A. Application means all materials, statements, representations, warranties and information, including all signed
applications and any materials attached to or incorporated within those signed applications, submitted by you or
on your behalf in connection with the underwriting of this Policy. The Application is deemed incorporated into
the Policy.
B. Balance of the Contract Price means the total amount that you are legally obligated to pay pursuant to the
Contract, less the amount actually paid by you to the Subcontractor pursuant to the Contract.
C. Contract means those written binding agreements executed by both you and your Subcontractor during the
Policy Period that contain a scope of work and price, and are utilized by you to evidence an agreement between
you and your Subcontractor. Contract includes written binding purchase orders executed by both you and your
supplier/vendor for the sale of materials or equipment. Provided, however, that the following are not Contracts:
1. any agreement or other document that does not require as its primary purpose at least one of the following:
a. the supply or installation of any building systems, construction materials or construction equipment to be
used for or incorporated into a project; or
b. the performance of other construction work on a project;
2. any agreement involving any Subcontractor or Project not reported to us pursuant to Subsection IV.N; or

U-SGD-100-B CW (04/16)
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