Coverage Territory

"Coverage territory" means:

1. The United States of America (including its territories and possessions), Puerto Rico, and Canada;
2. International waters or airspace, provided the injury or damage does not occur in the course of travel or transportation to or from any place not included in a. above; or
3. All parts of the world if:
1. The injury or damage arises out of:
1. Goods or products made or sold by you in the territory described in a. above; or
2. The activities of a person whose home is in the territory described in a. above, but is away for a short time on your business; and
2. The insured’s responsibility to pay damages is determined in a "suit" on the merits, in the territory described in a. above or in a settlement we agreed to.