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for that Policy Period. Loss(es) will be attributed to the Policy Period in which the Project is reported, not the
year(s) in which the costs and expenses are paid by you or Loss(es) are paid by us;
Loss does not include any costs or expenses incurred after completion by the Subcontractor of its scope of
work, including Post-Completion Obligations, under the applicable Contract, unless a notice of Default was
issued and reported to us in respect of the relevant material breach giving rise to such Loss prior to the expiration
of the Post-Completion Obligations Period.
Loss also does not include any costs or expenses incurred for any Home Office Overhead, including, but not
limited to, Extended Home Office Overhead, Un-absorbed Home Office Overhead or Under Absorbed Home
Office Overhead.

J. Policy Period means the period of time as set forth in the Declarations or any shorter period of time arising as a
result of termination of this Policy.
K. Post-Completion Obligations means the express provisions of a Contract that require a Subcontractor to
remedy faulty workmanship and/or deficiencies in the materials used within the Post-Completion Obligations
Period.
L. Post-Completion Obligations Period means the fixed period defined by the Contract following completion of
the Subcontractor’s work during which the Subcontractor is required to remedy faulty workmanship and/or
deficiencies in the materials used.
M. Prequalification Procedures means the written criteria that you have represented and warranted in the
Application that you will adhere to in order to assure that the Subcontractor will be able to carry out the terms
and conditions of the Contract.

N. Project means any construction project(s) reported to us pursuant to subsection IV.N. or listed on any Project
Addition Endorsement(s) attached to this Policy.
O. Project Commencement means the earliest date you first put any building materials, which includes any new,
altered or expanded foundation, utility or infrastructure changes and commenced material operations, on the
project site.
P. Residential Building means:
1. Any single family dwelling including, but not limited to, houses, town homes or townhouses; or

2. Any multi-family dwelling or mixed use multi-family dwelling including, but not limited to, condominiums,
cooperatives, duplexes, triplexes or fourplexes constructed, reconstructed, remodeled or repaired with the
intent that title to each individual dwelling or dwelling unit will be transferred separately to each owner; or
3. Any other part, structure or improvement which is attached to, included in or ancillary to any structure
identified in Subsection II.P.1. or 2. above.
Residential Building does not include any structure that functions solely as apartments, time shares, a hotel, a
motel, a nursing home, an assisted living senior housing care facility, a college campus dormitory, or government
housing on military bases.
Q. Subcontractor means:
1. Any legal entity that has entered into a Contract with the Insured. Subcontractor shall not include any
affiliate or subsidiary of the Insured now existing or hereafter formed or acquired, whether partially or wholly
owned or controlled, or any subsidiary of a subsidiary or affiliate (whether direct or indirect), or partnership or
joint venture of the Insured.
2. Any above-referenced entity that may become a debtor in possession as such term is defined in Chapter 11
of the United States Bankruptcy Code as well as any equivalent statute under similar law.

III. EXCLUSIONS
This insurance does not apply to Loss arising from:
A. Any Contract for which a payment and/or performance bond has been procured and under which bond you are
an obligee.

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