Insuring Agreement

"We will pay those sums that the insured becomes legally obligated to pay as damages because of "injury" to which this insurance applies if liability for such "injury" is imposed on the insured by reason of the selling, serving or furnishing of any alcoholic beverage. We will have the right and duty to defend the insured against any "suit" seeking those damages. However, we will have no duty to defend the insured against any "suit" seeking damages for "injury" to which this insurance does not apply. We may, at our discretion, investigate any "injury" and settle any claim or suit" that may result. But:

1. The amount we will pay for damages is limited as described in LIMITS OF INSURANCE (Section III); and
2. Our right and duty to defend end when we have used up the applicable limit of insurance in the payment of judgments or settlements.

No other obligation or liability to pay sums or perform acts or services is covered unless explicitly provided for under SUPPLEMENTARY PAYMENTS."

The insuring agreement pledges to pay those claims that an insured becomes legally liable for as a result of injury arising out of the selling, serving, or furnishing of any alcoholic beverage. Injury is specifically defined in the policy, and broadly so: "all damages, including damages because of bodily injury and property damage, and including damages for care, loss of services, or loss of support." This would include any direct bodily injury or property damage, and consequential damages, such as loss of consortium.

The insurer reserves the right to investigate any injury, and may settle, without the insured’s consent, any claim or suit. The duty to defend ends when the insurer has used up the applicable limit of insurance in the payment of judgments or settlements.