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However, we will only apply this exclusion to Loss on any Contract or Project that has a baseline construction
schedule at time of contract execution with a duration of greater than thirty-six (36) months.
M. Any Contract that contains language that in any way limits our right to recover to the full extent of any Loss;
provided, however, if the limitation is in an amount less than the applicable Limits of Insurance of the Policy, we
will indemnify you for Loss up to the applicable contractual liability limitation amount for which the Subcontractor
is liable.
N. Any civil or criminal fines, penalties, assessments, punitive damages, exemplary damages, treble damages, or
any other increase in damages resulting from the multiplication of compensatory damages.
IV. CONDITIONS

A. ACTION AGAINST US
No one may bring legal action against us under this Policy unless you have complied with all material terms of the
Policy and such action is commenced:
1. within one (1) year after the expiration of the Post-Completion Obligations Period; or

2. within six (6) months after making our coverage determination of a specific claim which is the cause of the
action or proceeding,
whichever event occurs later.
B. ASSIGNMENT

Assignment of interest under this Policy shall not be permitted under any circumstances unless our consent is
endorsed to this Policy.
C. CHANGE IN THE COMPOSITION OF THE INSURED
You must notify us in writing within thirty (30) days if, during the Policy Period, you consolidate, merge with, or
sell all or substantially all of your assets to any other person or entity, or if another person or entity should acquire
beneficial ownership of shares having a majority of the ordinary voting power in the election of directors in relation
to you or any entity of which you are, whether directly or indirectly, a subsidiary. Upon receipt of such notice, we
may at our option cancel this Policy; however, such cancellation shall be effective thirty (30) days after we notify
you in writing of the cancellation of this Policy pursuant to Change in the Composition of the Insured.

D. CHANGES
Notice to any agent or by any other persons shall not effect a waiver or a change in any part of the Policy or stop
us from asserting any right under the terms of this Policy; nor shall the terms of this Policy be waived or changed,
except by endorsement issued to form a part of the Policy.
E. CHOICE OF LAW
In the event that you and we dispute the meaning, interpretation, or operation of any term, condition, definition,
exclusion, or provision of this Policy resulting in litigation, arbitration, or other form of dispute resolution, the law of
the State of New York shall apply, and all litigation, arbitration, or other form of dispute resolution shall take place
in the State of New York.

F. DECLARATIONS
By acceptance of this Policy, you represent and warrant that the statements and information contained in the
Application, including the Prequalification Procedures, are true and complete, are the basis of this Policy, and
are to be considered as incorporated into and constituting a part of this Policy. This Policy is issued in reliance
upon the truth and completeness of these representations, and this Policy embodies all agreements existing
between you and us.
G. DISPUTE RESOLUTION
1. Any dispute, controversy or claim arising out of, relating to, or in connection with this Policy, shall be finally
settled by arbitration; provided, however, that you and we may agree first to submit any dispute, controversy
or claim to non-binding mediation. If the dispute, controversy or claim is not resolved by non-binding
mediation, either party may thereafter initiate an arbitration proceeding. Both the arbitration and the

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