FIRST AMENDMENT TO LEASE AGREEMENT
PREMISES: 2319 Central Avenue, Alameda, CA 94501, consisting of approximately 1,850 square feet square feet
LANDLORD: CITY OF ALAMEDA, a charter city and municipal corporation TENANT: Play House, LLC., dba Director’s Cut
LEASE DATE: May 8, 2018 and executed on or about February 27, 2018 (Tenant), May 8, 2018 (Landlord)
This First Amendment to the Lease Agreement ("First Amendment") , is dated as of October ___, 2023 for reference purposes only, and is entere d into by and between the CITY OF ALAMEDA, a charter city and municipal corporation ( "Landlord"), and Project Burger, LLC. a California corporation ("Tenant").
NOW, THEREFORE, in consideration of the foregoing, which are in corporated herein by reference, and of their mutual covenants contained he rein, the parties hereby agree as follows:
1. Background.
A. Landlord and Tenant entered into that certain Lease Agreemen t dated May 8, 2018, for a certain premise described therein and referred to a s 2319 Central Avenue, Alameda, CA 94501, consisting of approximately 1,850 square fee t square feet of rentable space (the "Premises").
B. The Expiration Date of the Lease is May 31, 2028.
C. Capitalized terms used in this First Amendment without definition shall have the same meaning given to such terms in the Lease. This First Amendment shall be effective upon the last date set forth below the parties’ signatures.
2. Term. The term of the Lease is hereby amended to terminate o n October 31, 2025 unless terminated earlier by the Landlord pursuant to the following provisions:
A. Within six (6) months of the effective date, Tenant shall provide Landlord with a written statement providing evidence that Tenant has been able to: a) Maintain a minimum of 36 operating hours per week; b) Maintain a minimum of 6 days of service per week, c) Maintain consistent and regular service consistent wit h the following schedule:
Tuesday, Wednesday and Thursday open for service from 3 pm to 8 pm; Friday and Saturday open for service from 12 pm to 11 pm, and provide service from 11 am to 4 pm on Sundays; and d) Add staff to support the restaurant operations and enable the Tenant to expand the operating hours to include six (6) additional hours of service to provide for lunch hour service on at least two weekdays per week.
B. If Landlord determines at six months that Tenant has failed to provide the six- month statement, failed to maintain regular and consistent oper ating hours, or failed to
add support staff, Landlord may terminate lease and immediately begin marketing the property for a new tenant.
C. Within 12 months of effective date of this amendment, Tenant shall provide a written statement providing evidence that Tenant has been able to: a) Maintain a minimum of 42 operating hours per week, and b) Maintain consist ent and regular lunch service hours at least five (5) days per week and dinner service at least four (4) days per week.
D. If Landlord determines at 12 months that Tenant has failed t o provide the 12- month statement or failed to provide the minimum service hours, Landlord may terminate the lease and immediately begin marketing the property for a new tenant.
3. Base Rent. Base Rent for the two-year term of this lease shall be as follows:
Base Rent Months Monthly Base Rent
1-12 $5,530
13-24 $5,690
4. Prior Outstanding Rent. Upon execution of this amendment, Te nant is relieved of all obligation to pay outstand rent for period preceding execution of this amendment.
6. Ratification; Miscellaneous. Except as modified by this Amendment, in all other respects the Lease is hereby ratified and affirmed and remains in full force and effect.
This Second Amendment may be executed in one or more counterparts.
7. Electronic Signature. This Second Amendment may be signed by electronic signature and any such electronic signature shall have the same force and effect as an original signature. Without limitation, “electronic signature” shall include faxed versions of an original signature or electronically scanned and transmitted versions (e.g., via pdf) of an original signature.
[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]
IN WITNESS WHEREOF, the undersigned have executed this First Amendment as of the day and year last set forth below.
LANDLORD: CITY OF ALAMEDA, a
charter city and municipal corporation
By: _____________________________
Jennifer Ott, City Manager
Approved as to Form
By: ____________________________
Len Aslanian, Assistant City Attorney
Recommended for Approval
By: _____________________________
AbLJDLO Thorne-Lyman, Base Reuse
and Economic Development Director
TENANT: Play House, a limited liability
company
By: _____________________________
Name: Husam Haddad
Title:___________________________
Date:___________________________
09/26/2023
1Broker Insurance Services
1615 Hill Road
Suite 21
Novato CA 94947
Loran Mcbride
[email protected]
Play House, LLC, DBA: Director's Cut
2319 Central Avenue
Alameda, CA 94501
Markel Insurance Company
CL2392600427
A Y BOM0008660-06 10/11/2023 10/11/2024
2,000,000
1,000,000
5,000
2,000,000
4,000,000
4,000,000
A
Liquor Liability
BOM0008660-06 10/11/2023 10/11/2024 Each Common Cause $2,000,000 Aggregate $4,000,000
City of Alameda, its City Council, boards, commissions, officials, employees, and volunteers, RiverRock Real Estate Group, and any other party designated by the City (as determined in the City's sole discretion) are named as additional insured as required per written contract. *10-Day Notice of Cancellation applies for non-payment of premium.
City of Alameda c/o River Rock Real Estate Group
950 West Mall Square, Rm 239
Alameda CA 94501
SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE
THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS.
INSURER(S) AFFORDING COVERAGE
INSURER F :
INSURER E :
INSURER D :
INSURER C :
INSURER B :
INSURER A :
NAIC #
NAME:
CONTACT
(A/C, No):
FAX
E-MAIL
ADDRESS:
PRODUCER
(A/C, No, Ext):
PHONE
INSURED
REVISION NUMBER:CERTIFICATE NUMBER:COVERAGES
IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must have ADDITIONAL INSURED provisions or be endorsed.
If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s).
THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS
CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER.
OTHER:
(Per accident)
(Ea accident)
$
$
N / A
SUBR
WVD
ADDL
INSD
THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS
CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. $
$
$
$PROPERTY DAMAGE
BODILY INJURY
(Per accident)
BODILY INJURY (Per person)
COMBINED SINGLE LIMIT
AUTOS ONLY
AUTOSAUTOS ONLY
NON-OWNED
SCHEDULEDOWNED
ANY AUTO
AUTOMOBILE LIABILITY
Y / N
WORKERS COMPENSATION
AND EMPLOYERS' LIABILITY
OFFICER/MEMBER EXCLUDED?
(Mandatory in NH)
DESCRIPTION OF OPERATIONS below
If yes, describe under
ANY PROPRIETOR/PARTNER/EXECUTIVE
$
$
$
E.L. DISEASE - POLICY LIMIT
E.L. DISEASE - EA EMPLOYEE
E.L. EACH ACCIDENT
ER
OTH-
STATUTE
PER
LIMITS(MM/DD/YYYY)
POLICY EXP
(MM/DD/YYYY)
POLICY EFF
POLICY NUMBERTYPE OF INSURANCELTR
INSR
DESCRIPTION OF OPERATIONS / LOCATIONS / VEHICLES (ACORD 101, Additional Remarks Schedule, may be attached if more space is required)
EXCESS LIAB
UMBRELLA LIAB $EACH OCCURRENCE
$AGGREGATE
$
OCCUR
CLAIMS-MADE
DED RETENTION $
$PRODUCTS - COMP/OP AGG
$GENERAL AGGREGATE
$PERSONAL & ADV INJURY
$MED EXP (Any one person)
$EACH OCCURRENCE
DAMAGE TO RENTED
$PREMISES (Ea occurrence)
COMMERCIAL GENERAL LIABILITY
CLAIMS-MADE OCCUR
GEN'L AGGREGATE LIMIT APPLIES PER:
POLICY PRO-
JECT LOC
CERTIFICATE OF LIABILITY INSURANCE
DATE (MM/DD/YYYY)
CANCELLATION
AUTHORIZED REPRESENTATIVE
ACORD 25 (2016/03)
© 1988-2015 ACORD CORPORATION. All rights reserved.
CERTIFICATE HOLDER
The ACORD name and logo are registered marks of ACORD
HIRED
AUTOS ONLY
MBP 2033 11 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission.
BUSINESSOWNERS
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
BUSINESSOWNERS SELECT ENDORSEMENT
This endorsement modifies insurance provided under the following:
BUSINESSOWNERS COVERAGE FORM
As respects any coverage provided by this endorsement, if highe r limits are provided on any other Schedule, Declarations or endorsement attached to this policy, then the limits and coverage provided by this endorsement would not apply for that coverage.
SECTION I – PROPERTY
SCHEDULE OF COVERAGES LIMIT OF INSURANCE TYPE OF AMENDMENT Premises Limitation 1,000 Feet Increased Distance
Increased Cost Of Construction $25,000 Increased Limit
Appurtenant Buildings And Structures
Building
Business Person Property
$25,000
$5,000
Coverage Extension
Coverage Extension
Valuable Papers And Records
Not At Described Premises $5,000 Coverage Extension
Accounts Receivable
Not At Described Premises $5,000 Coverage Extension
Theft Damage To Rented Property $5,000 Coverage Extension Personal Property Of Others Replacement Cost Amended Valuation SECTION II – LIABILITY
SCHEDULE OF COVERAGES TYPE OF AMENDMENT
Additional Insured – By Written Contract, Agreement, Permit Or Authorization Included Duties In The Event Of Occurrence, Offense, Claim Or Suit Included I. Section I - Property is amended as follows:
THE AMENDMENTS AND EXTENSIONS OF COVERAGE DETAILED BELOW ARE AD DED TO THIS POLICY IF THE APPLICABLE POLICY COVERAGE IS SPECIFICALLY IDENTIFIED IN TH E DECLARATIONS. THESE EXTENSIONS OF COVERAGE WILL APPLY, WHERE AVAILABLE:
1. SEPARATELY TO EACH OF YOUR PREMISES DESCRIBED IN THE DECLARA TIONS; AND
2. ONLY IF THE POLICY COVERAGE(S) THAT CORRESPOND TO EACH AMEND MENT AND EXTENSION SCHEDULED ABOVE ARE SHOWN IN THE DECLARATIONS AS COVERED BY YOU R POLICY.
M$5.(/ I1685$1&( C203$1<
MBP 2033 11 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission.
We will not pay for loss or damage in any one occurrence until the amount of loss or damage exceeds the deductible.
The deductible provisions do not preclude the imposition of any applicable coverage waiting period, as stated in specific coverage section of this endorsement. Unless a separat e deductible amount is shown in a specific coverage section of this endorsement, we will not pay for loss or damage in any one occurrence under any coverage on this endorsement until the amount of loss or damage exceeds the less er of the Building or Business Personal Property deductible applicable to the highest valued building on the Sch edule at the covered location at the time of loss.
Deductibles do not reduce the amount of insurance.
A. Premises Limitation
Any reference to “within 100 feet” of the described premises is a m e n d e d t o r e a d “ w i t h i n 1 , 0 0 0 f e e t ” o f t h e described premises.
B. The following replaces Paragraph 5. Additional Coverages, I. Increased Cost of Construction, (6):
Increased Cost of Construction
(6) The most we will pay under this Additional Coverage, for each d escribed building insured under Section I – Property, is the limit shown in the Schedule of this endorsemen t. If a damaged building(s) is covered under a blanket Limit of Insurance which applies to more than one build ing or item of property, then the most we will pay under this Additional Coverage, for each damaged building, is the limit shown in the Schedule of this endorsement.
The amount payable under this Additional Coverage is additional insurance.
C. The following is added to Paragraph 5. Additional Coverages:
Appurtenant Buildings And Structures
When a Limit of Insurance is shown in the Declarations for Buil dings or Business Personal Property at the described premises, you may extend that insurance to apply to d irect physical loss of or damage to incidental appurtenant buildings or structures, or Business Personal Prope rty located within the incidental appurtenant buildings or structures, within 1,000 feet of that described premises, caused by or resulting from a Covered Cause of Loss.
Incidental appurtenant buildings or structures include:
(1) Storage buildings;
(2) Carports;
(3) Garages;
(4) Pump houses; or
(5) Above ground tanks;
which have not been specifically described in the Declarations.
The most we will pay for loss or damage under this Additional C overage in any occurrence is the limit shown in the Schedule of this endorsement.
The amount payable under this Additional Coverage is additional insurance.
D. The following changes are made to Paragraph 6. Coverage Extensions:
Valuable Papers And Records
The following is added to Paragraph e.(3):
For “valuable papers and records” not at the described premises , the most we will pay is the limit shown in the Schedule of this endorsement, unless a higher Limit of Insuranc e for “valuable papers and records” is shown in the Declarations.
Accounts Receivable
The following is added to Paragraph f.(2):
For accounts receivables not at the described premises, the mos t we will pay is the limit shown in the Schedule of this endorsement, unless a higher Limit of Insurance for accounts receivable is shown in the Declarations.
MBP 2033 11 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission.
E. The following is added to Paragraph 6. Coverage Extensions:
Theft Damage To Rented Property
When a Limit of Insurance is shown in the Declarations for Busi ness Personal Property at the described premises, you may extend that insurance to apply to direct phys ical damage caused by or resulting from theft or attempted theft to:
(1) That part of a building or structure you occupy, but not own, which contains Covered Property; and (2) Property within such non-owned building or structure used for m aintenance or service of such non-owned building.
We will not pay under this Coverage Extension for loss or damage:
(1) Caused by or resulting from fire or explosion; or
(2) To glass (other than glass building blocks) or to any lettering, ornamentation or burglar alarm tape on glass.
This Coverage Extension applies only if you are a tenant and yo u are contractually obligated to insure this exposure.
The most we will pay under this coverage is the limit shown in the Schedule of this endorsement.
F. The following changes are made to Paragraph E.5. Loss Payment:
Personal Property Of Others Loss Payment – Replacement Cost:
1. The following is added to Paragraph E.5.d.:
Personal property of others at replacement cost.
2. Paragraph E.5.d.(3)(b) is deleted in its entirety.
II. Section II – Liability is amended as follows:
A. Additional Insured – By Written Contract, Agreement, Permit Or Authorization The following is added to Paragraph 2. of C. Who Is An Insured:
Any person or organization to whom you are required by written contract, agreement, permit or authorization to provide insurance, but only if the contract, agreement, permit or authorization is in effect during the policy period shown in the Declarations and was executed prior to the "bodily injury", "property damage" or "personal and advertising injury". However:
(1) The person or organization is an additional insured only to the extent you are liable due to:
(a) The ownership, maintenance or use of that part of premises you own, rent, lease or occupy, subject to the following provisions:
(i) This insurance does not apply to any "occurrence" which takes place after you cease to be a tenant in any premises leased to or rented to you;
(ii) This insurance does not apply to structural alterations, new co nstruction or demolition operations performed by or on behalf of the person or organization; or (iii) This insurance does not apply to negligent acts or omissions on the part of the person or organization;
(b) Your ongoing operations for that additional insured, whether the work is performed by you or for you; (c) The maintenance, operation or use by you of equipment leased t o you by such person or organization, subject to the following additional provisions:
(i) This insurance does not apply to any "occurrence" which takes p l a c e a f t e r t h e e q u i p m e n t l e a s e expires or you cease to lease that equipment; and
(ii) This insurance does not apply to "bodily injury" or "property d amage" arising out of the sole negligence of such person or organization;
(d) Permits or authorizations issued by any state or political subd ivision with respect to operations performed by you or on your behalf, subject to the following additional provision:
MBP 2033 11 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission.
This insurance does not apply to "bodily injury", "property dam age" or "personal and advertising injury" arising out of operations performed for that state or municipality. (2) This insurance does not apply to "bodily injury" or "property d amage" included within the "products-completed operations hazard".
(3) The insurance with respect to any manager or lessor of premises leased or rented to you and shown in the Declarations does not apply to:
(a) Any "occurrence" which takes place after you cease to be a tenant in that premises. (b) Structural alterations, new construction or demolition operatio ns performed by or on behalf of the person or organization who leases to you or manages property you rent or lease. (4) A vendor is an additional insured only with respect to “bodily injury” or “property damage” arising out of “your products” which are distributed or sold in the regular course o f the vendor’s business, subject to the following additional provisions:
This insurance does not apply to:
(a) "Bodily injury" or "property damage" for which the vendor is ob ligated to pay damages by reason of the assumption of liability in a contract or agreement. This exclus ion does not apply to liability for damages that the vendor would have in the absence of the contract or agreement; (b) Any express warranty unauthorized by you;
(c) Any physical or chemical change in the product made intentionally by the vendor; (d) Repackaging, except when unpacked solely for the purpose of ins pection, demonstration, testing, or the substitution of parts under instructions from the manufacturer, and then repackaged in the original container;
(e) Any failure to make such inspections, adjustments, tests or ser vicing as the vendor has agreed to make or normally undertakes to make in the usual course of business, in connection with the distribution or sale of the products;
(f) Demonstration, installation, servicing or repair operations, e xcept such operations performed at the vendor's premises in connection with the sale of the product; (g) Products which, after distribution or sale by you, have been la beled or relabeled or used as a container, part or ingredient of any other thing or substance by or for the vendor; or (h) "Bodily injury" or "property damage" arising out of the sole ne gligence of the vendor for its own acts or omissions or those of its employees or anyone else acting on it s behalf. However, this exclusion does not apply to:
(i) The exceptions contained in Subparagraphs (d) or (f); or (ii) Such inspections, adjustments, tests or servicing as the vendor has agreed to make or normally undertakes to make in the usual course of business, in connecti on with the distribution or sale of the products.
This insurance does not apply to any person or organization fro m which you have acquired such products, or any ingredient, part or container entering into, accompanying or containing such products. (5) The insurance afforded to mortgagees, assignees, or receivers a rising out of the ownership, maintenance or use of premises by you does not apply to structural alterations , new construction and demolition operations performed by or for that person or organization.
(6) The insurance afforded to architects, engineers, or surveyors d oes not apply to “bodily injury”, “property damage” or “personal and advertising injury” arising out of the rendering or failure to render any professional services by or for you, including:
(a) The preparing, approving, or failure to prepare or approve, map s, shop drawings, opinions, reports, surveys, field orders, change orders, designs or drawings and specifications; or (b) Supervisory, inspection, architectural or engineering activities.
MBP 2033 11 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission.
(7) A person's or organization's status as an additional insured un der this endorsement ends when your operations for that additional insured are completed.
(8) No coverage will be provided if, in the absence of this endorse ment, no liability will be imposed by law on you.
Coverage will be limited to the extent of your negligence or fa ult according to the applicable principles of comparative fault.
(9) The insurance provided to such automatic additional insureds:
(a) Only applies to the extent permitted by law; and
(b) Will not be broader than that which you are required by the con tract or agreement to provide for such additional insureds.
(10) With respect to the insurance afforded to such additional insur eds, the following is added to Paragraph D .
Liability And Medical Expenses Limits Of Insurance:
The most we will pay on behalf of a person or organization that is an additional insured under this endorsement is the lesser of the amount of insurance:
(a) Required in a written contract, written agreement or permit issued by a state or political subdivision; (b) Available under the applicable Limits of Insurance shown in the Declarations; whichever is less.
The insurance afforded to the additional insured does not incre ase the Limits of Insurance shown in the Declarations.
B. Duties In The Event Of Occurrence, Offense, Claim Or Suit Paragraph E. Liability And Medical Expenses General Conditions, 2. Duties In The Event Of Occurrence, Offense, Claim or Suit, is amended to include the following:
Your obligation to notify us as soon as practicable of an "occu rrence", offense, claim or "suit" is satisfied if you send us written notice as soon as practicable after any of your "executive officers", directors, partners, insurance managers or legal representatives become aware of or should hav e become aware of such "occurrence", offense, claim or "suit".
All other terms and conditions remain the same.
POLICY NUMBER: BUSINESSOWNERS
BP 04 48 07 13
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
ADDITIONAL INSURED DESIGNATED PERSON
OR ORGANIZATION
This endorsement modifies insurance provided under the following:
BUSINESSOWNERS COVERAGE FORM
SCHEDULE
Name Of Additional Insured Person(s) Or Organization(s):
Information required to complete this Schedule, if not shown above, will be shown in the Declarations.
Section II
Liability is amended as follows: B. With respect to the insurance afforded to these additional insureds, the following is added to
Paragraph D. Liability And Medical Expenses
Limits Of Insurance:
1. Insured:
3. Any person(s) or organization(s) shown in the
Schedule is also an additional insured, but only
with respect to liability for "bodily injury",
"property damage" or "personal and advertising
injury" caused, in whole or in part, by your acts
or omissions or the acts or omissions of those
acting on your behalf in the performance of
your ongoing operations or in connection with
your premises owned by or rented to you.
If coverage provided to the additional insured is
required by a contract or agreement, the most we
will pay on behalf of the additional insured is the
amount of insurance:
Required by the contract or agreement; or
2. Available under the applicable Limits Of
Insurance shown in the Declarations;
This endorsement shall not increase the
However:
a. The insurance afforded to such additional
insured only applies to the extent permitted
by law; and
applicable Limits Of Insurance shown in the
Declarations.
b. If coverage provided to the additional
insured is required by a contract or
agreement, the insurance afforded to such
additional insured will not be broader than
that which you are required by the contract
or agreement to provide for such additional
insured.
BP 04 48 07 13
A.
The following is added to ParagraphC. Who Is An
whichever is less.
c Insurance Services Office, Inc., 2012
BOM0008660-06
City of Alameda, its Council, Officers, Employees, Board and Commissions
09/26/2023
1Broker Insurance Services
1615 Hill Road
Suite 21
Novato CA 94947
[email protected]
00000086
Markel Insurance Company
P.O. Box 2279
Omaha, NE 68103-2279
Play House, LLC, DBA: Director's Cut
2319 Central Avenue
Alameda, CA 94501
BOM0008660-06
10/11/2023 10/11/2024
2319 Central Ave., Alameda, CA 94501
Business Personal Property - Replacement Cost Valuation $10,000 $1,000 Business Income - 12 Months Actual Loss Sustained
"Special Form" coverage is comprehensive subject to policy exclusions such as earthquake and flood City of Alameda c/o RiverRock Real Estate Group
950 West Mall Square, Rm 239
Alameda CA 94501
SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS.
CANCELLATION
© 1993-2015 ACORD CORPORATION. All rights reserved.ACORD 27 (2016/03) The ACORD name and logo are registered marks of ACORD
THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED.
NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS
EVIDENCE OF PROPERTY INSURANCE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS.
PROPERTY INFORMATION
LOCATION/DESCRIPTION
COVERAGE INFORMATION
COVERAGE / PERILS / FORMS AMOUNT OF INSURANCE DEDUCTIBLE PHONE
(A/C, No, Ext):
(A/C, No):
FAX E-MAIL
ADDRESS:
AGENCY
THIS EVIDENCE OF PROPERTY INSURANCE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE ADDITIONAL INTEREST NAMED BELOW. THIS EVIDENCE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS EVIDENCE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE ADDITIONAL INTEREST.
CUSTOMER ID #:
AGENCY
SUB CODE:CODE:
INSURED LOAN NUMBER POLICY NUMBER
TERMINATED IF CHECKED
CONTINUED UNTIL
EXPIRATION DATEEFFECTIVE DATE
THIS REPLACES PRIOR EVIDENCE DATED:
COMPANY
DATE (MM/DD/YYYY)
EVIDENCE OF PROPERTY INSURANCE
REMARKS (Including Special Conditions)
MORTGAGEE
ADDITIONAL INSURED LOSS PAYEE
ADDITIONAL INTEREST
NAME AND ADDRESS
AUTHORIZED REPRESENTATIVE
LOAN #
PERILS INSURED BASIC BROAD SPECIAL
LENDER'S LOSS PAYABLE
U33 12-17
MAILING ADDRESSHUSAM HEKMAT HADDAD3031 23RD STSAN FRANCISCO CA 94110-3315 To whom it may concern:This letter is to verify that we have issued coverage under the above policy number for the dates indicated in theeffective and expiration date fields for the vehicle listed. This should serve as proof that the below mentioned vehiclemeets or exceeds the financial responsibility requirement for your state.This verification of coverage does not amend, extend or alter the coverage afforded by this policy.
GEICO GENERAL INSURANCE COMPANY
VERIFICATION OF COVERAGE(SEE BELOW UNDER CAUTIONARY NOTE) GEICOWashington DC
Policy Number: 4478908652Effective Date: 08-24-23Expiration Date: 02-24-24Registered State: CALIFORNIA Vehicle Year: 2018Make: TOYOTAModel: TACOMAVIN: 5TFRX5GN3JX117842COVERAGES LIMITSDEDUCTIBLESBodily Injury LiabilityEach Person/Each OccurrenceState Minimum $15,000/$30,000$300,000/$300,000Property Damage LiabilityState Minimum $5,000$50,000Uninsured & Underinsured MotoristsEach Person/Each Occurrence$100,000/$300,000Comprehensive (Excluding Collision)$250 DedCollision $500 Ded/WaiverEmergency Road ServiceFullRental Reimbursement$35 Per Day / $1,050 Max Lienholder Additional Insured Interested Party
Additional Information:Issue Date: 2023-10-04
If you have any additional questions, please call 1-800-841-3000.CAUTIONARY NOTE: THE CURRENT COVERAGES, LIMITS, AND DEDUCTIBLES MAY DIFFER FROM THE COVERAGES, LIMITS AND DEDUCTIBLES IN EFFECT ATOTHER TIMES DURING THE POLICY PERIOD. THIS VERIFICATION OF COVERAGE REFLECTS THE COVERAGES, LIMITS, AND DEDUCTIBLES AS OF THE ISSUEDDATE OF THIS DOCUMENT WHICH IS SHOWN UNDER "ADDITIONAL INFORMATION" OR IF AN ISSUED DATE IS NOT SHOWN, THE DATE OF THIS FACSIMILE OREMAIL.
MPIL 1007 01 20 Page 1 of 3
PRIVACY NOTICE U. S. Consumer Privacy Notice Rev. 1/1/2020 FACTS WHAT DOES MARKEL GROUP OF COMPANIES REFERENCED BELOW (INDIVIDUALLY OR COLLECTIVELY REFERRED TO AS "WE", "US", OR "OUR") DO WITH YOUR PERSONAL INFORMATION? Why? In the course of Our business relationship with you, We collect information about you that is necessary to provide you with Our products and services. We treat this information as confidential and recognize the importance of protecting it. Federal and state law gives you the right to limit some but not all sharing of your personal information. Federal and state law also requires Us to tell you how We collect, share, and protect your personal information. Please read this notice carefully to understand what We do. What? The types of personal information We collect and share depend on the product or service you have with Us. This information can include: •your name, mailing and email address(es), telephone number, date of birth, gender, marital or family status,identification numbers issued by government bodies or agencies (i.e.: Social Security number or FEIN, driver’slicense or other license number), employment, education, occupation, or assets and income from applicationsand other forms from you, your employer and others;•your policy coverage, claims, premiums, and payment history from your dealings with Us, Our Affiliates, orothers;•your financial history from other insurance companies, financial organizations, or consumer reportingagencies, including but not limited to payment card numbers, bank account or other financial account numbersand account details, credit history and credit scores, assets and income and other financial information, oryour medical history and records.Personal information does not include: •publicly-available information from government records;•de-identified or aggregated consumer information.When you are no longer Our customer, We continue to share your information as described in this Notice as required by law. How? All insurance companies need to share customers’ personal information to run their everyday business. In the section below, We list the reasons financial companies can share their customers’ personal information; the reasons We choose to share; and whether you can limit this sharing. We restrict access to your personal information to those individuals, such as Our employees and agents, who provide you with insurance products and services. We may disclose your personal information to Our Affiliates and Nonaffiliates (1) to process your transaction with Us, for instance, to determine eligibility for coverage, to process claims, or to prevent fraud, or (2)with your written authorization, or (3) otherwise as permitted by law. We do not disclose any of your personalinformation, as Our customer or former customer, except as described in this Notice.
MARKEL INSURANCE COMPANY
MPIL 1007 01 20 Page 2 of 3
Reasons We can share your personal information Do We share? Can you limit this sharing? For Our everyday business purposes and as required by law – such as to process your transactions, maintain your account(s), respond to court orders and legal/regulatory investigations, to prevent fraud, or report to credit bureaus Yes No For Our marketing purposes – to offer Our products and services to you Yes No For Joint Marketing with other financial companies Yes No For Our Affiliates’ everyday business purposes – information about your transactions and experiences Yes No For Our Affiliates’ everyday business purposes – information about your creditworthiness No We don’t share For Our Affiliates to market you No We don’t share For Nonaffiliates to market you No We don’t share Questions? Call (888) 560-4671 or email [email protected] Who We are Who is providing this Notice? A list of Our companies is located at the end of this Notice. What We do How do We protect your personal information? We maintain reasonable physical, electronic, and procedural safeguards to protect your personal information and to comply with applicable regulatory standards. For more information, visit www.markel.com/privacy-policy. How do We collect your personal information? We collect your personal information, for example, when you • complete an application or other form for insurance • perform transactions with Us, Our Affiliates, or others • file an insurance claim or provide account information • use your credit or debit card We also collect your personal information from others, such as consumer reporting agencies that provide Us with information such as credit information, driving records, and claim histories. Why can’t you limit all sharing of your personal information? Federal law gives you the right to limit only • sharing for Affiliates’ everyday business purposes – information about your creditworthiness • Affiliates from using your information to market to you • sharing for Nonaffiliates to market to you State laws and individual companies may give you additional rights to limit sharing. See the Other Important Information section of this Notice for more on your rights under state law.
MPIL 1007 01 20 Page 3 of 3
Definitions Affiliates Companies related by common ownership or control. They can be financial and nonfinancial companies. • Our Affiliates include member companies of Markel Group. Nonaffiliates Companies not related by common ownership or control. They can be financial and nonfinancial companies. • Nonaffiliates that We can share with can include financial services companies such as insurance agencies or brokers, claims adjusters, reinsurers, and auditors, state insurance officials, law enforcement, and others as permitted by law. Joint Marketing A formal agreement between Nonaffiliated companies that together market financial products or services to you. • Our Joint Marketing providers can include entities providing a service or product that could allow Us to provide a broader selection of insurance products to you. Other Important Information For Residents of AZ, CT, GA, IL, ME, MA, MN, MT, NV, NJ, NC, OH, OR, and VA: Under state law, under certain circumstances you have the right to access and request correction, amendment or deletion of personal information that We have collected from or about you. To do so, contact your agent, visit www.markel.com/privacy-policy, call (888) 560-4671, or write to Markel Corporation Privacy Office, 4521 Highwoods Parkway, Glen Allen, VA 23060. We may charge a reasonable fee to cover the costs of providing this information. We will let you know what actions We take. If you do not agree with Our actions, you may send Us a statement. For Residents of CA: You have the right to review, make corrections, or delete your recorded personal information contained in Our files. To do so, contact your agent, visit www.markel.com/privacy-policy, call (888) 560-4671, or write to Markel Corporation Privacy Office, 4521 Highwoods Parkway, Glen Allen, VA 23060. We do not and will not sell your personal information. For the categories of personal information We have collected from consumers within the last 12 months, please visit: www.markel.com/privacy-policy. For Residents of MA and ME: You may ask, in writing, for specific reason, for an adverse underwriting decision. Markel Group of Companies Providing This Notice: City National Insurance Company, Essentia Insurance Company, Evanston Insurance Company, FirstComp Insurance Company, Independent Specialty Insurance Company, National Specialty Insurance Company, Markel Bermuda Limited, Markel American Insurance Company, Markel Global Reinsurance Company, Markel Insurance Company, Markel International Insurance Company Limited, Markel Service, Incorporated, Markel West, Inc. (d/b/a in CA as Markel West Insurance Services), Pinnacle National Insurance Company, State National Insurance Company, Inc., Superior Specialty Insurance Company, SureTec Agency Services, Inc. (d/b/a in CA as SureTec Agency Insurance Services), SureTec Indemnity Company, SureTec Insurance Company, United Specialty Insurance Company, Inc.
MPIL 1052 11 17 Page 1 of 1
BUSINESSOWNERS
NOTICE TO POLICYHOLDERS
CLAIMS REPORTING NOTICE
Markel is prepared to handle your claim needs and provides four ways for you to submit new claim reports:
1. Phone: (888) 500-3344 English/Espanola
2. Fax: (877) 444-6806
3. Email: [email protected]
4. Mail: Markel Claims
P.O. Box 3188
Omaha, NE 68103-0188
Important!
In order for us to expedite the handling of your claim, please be prepared to provide the following information:
• Claim number (If an open claim)
• Policy number and insured name
• Date and time of loss
• A brief description of what happened
• Contact information for other person(s) or insurer(s) involved Please document any damage with photos and take steps necessary to protect your property from further damage. Be sure to save invoices, receipts, and any additional documentation for expenses you incur.
We caution you not to pay out of pocket for medical charges associated with an injury on you r premises or arising out of your business operations.
If you are unsure whether to file a claim, please contact our office or your agent for help with your decision.
If the claim has already been reported, you may call the examiner handling the claim at (888) 500-3344.
The Markel Claims Team will review all claim notices upon receipt and assign the claim to one of our staff examiners. A claim acknowledgement will be sent to your designated contact advising of the claim number and the assigned examiner.
We appreciate your business and look forward to servicing your Businessowner policy needs.
PLEASE REFER TO THE POLICY FOR ANY NOTICE AND REPORTING PROVISIONS AND DUTIES IN THE EVENT OF LOSS OR DAMAGE TO COVERED PROPERTY.
MARKEL INSURANCE COMPANY
MPIL 1073-CA 05 14
Includes copyrighted material of Insurance Services Office, Inc. with its permission
INTERLINE
CALIFORNIA PREMIUM REFUND DISCLOSURE NOTICE
In accordance with CAL. INS. CODE § 481.(c), we are notifying you that in the event that the first Named Insured cancel s the insurance policy, we may retain 10% of the unearned premium. The premium refunded to you will therefore be calculated as 90% of the pro rata unearned premium. But if cancellation takes place d uring the first year of a multi year prepaid policy, we will return 90% of the pro rata unearned premium for the first year and the full annual premium for the subsequent years.
However, the penalties set forth in the preceding paragr aph will not apply under the following circumstances , even if the first Named Insured cancels the policy:
1. The Insured(s) no longer has a financial or insurable interest in the property or business operation that is the subject of insurance;
2. Cancellation takes place after the first year for a prepaid policy written for a term of m ore than one year; or
3. The policy is rewritten in the same insuring company or company group.
MARKEL INSURANCE COMPANY
MPIL 1083 04 15
Includes copyrighted material of Insurance Services Office, Inc. with its permission.
INTERLINE
U.S. TREASURY DEPARTMENT'S OFFICE OF FOREIGN
ASSETS CONTROL ("OFAC")
ADVISORY NOTICE TO POLICYHOLDERS
No coverage is provided by this Policyholder Notice nor can it be construed to replace any provisions of your policy. You should read your policy and review your Declarations page for complete information on the coverages you are provided.
This Notice provides information concerning possible impact on your insurance coverage due to directives issued by OFAC.
Please read this Notice carefully.
The Office of Foreign Assets Control (OFAC) administers and enforces sanctions policy, based on Presidential declarations of "national emergency". OFAC has identified and listed numerous:
• Foreign agents;
• Front organizations;
• Terrorists;
• Terrorist organizations; and
• Narcotics traffickers;
as "Specially Designated Nationals and Blocked Persons". This list can be located on the United States Treasury's web site – https://www.treasury.gov/ofac.
In accordance with OFAC regulations, if it is determined that you or any other insured, or any person or entity claiming the benefits of this insurance has violated U.S. sanctions law or is a Specially Designated National and Blocked Person, as identified by OFAC, this insuran ce will be considered a blocked or frozen contract and all provisions of this insurance are immediately subject to OFAC. When an insurance policy is considered to be such a blocked or frozen contract, no payments nor premium refunds may be made without authorization from OFAC. Other limitations on the premiums and payments also apply.
MARKEL INSURANCE COMPANY
EQUIPMENT BREAKDOWN COVERAGE
ENHANCEMENT TO YOUR COMMERCIAL PROPERTY COVERAGE
MARKEL INSURANCE COMPANY HAS MADE OUR COMMERCIAL PROPERTY POLICIES BROADER BY ADDING "EQUIPMENT BREAKDOWN" COVERAGE.
THIS VALUABLE ENHANCEMENT PROVIDES COVERAGE FOR THE MECHANICAL, ELECTRICAL AND PRES-
SURE SYSTEMS BREAKDOWN OF MANY TYPES OF ELECTRICAL, PRESSURE AND/OR MECHANICAL EQUIP- MENT YOU USE IN YOUR BUSINESS. A FEW EXAMPLES OF COVERED TYPES OF EQUIPMENT ARE HEATING, AIR CONDITIONING AND REFRIGERATION SYSTEMS; HOT WATER HEATERS; TELEPHONE SYSTEMS; SECU- RITY SYSTEMS; COMPUTER SYSTEMS AND MUCH, MUCH MORE!
THE SERVICE AND COST TO INSPECT ANY JURISDICTIONALLY REQUIRED OBJECT(S) IS INCLUDED IN YOUR PREMIUM. THIS SERVICE WILL BE PROVIDED BY OUR INSURANCE PARTNER, MUTUAL BOILER REINSUR- ANCE. IF YOU HAVE A QUESTION ABOUT THIS SERVICE OR REQUIRE A JURISDICTIONAL INSPECTION, PLEASE CALL YOUR AGENT OR MUTUAL BOILER'S INSPECTION HOTLINE AT (800) 814-4458 AT LEAST 60 DAYS PRIOR TO THE CERTIFICATE EXPIRATION.
SHOULD YOU HAVE ANY QUESTIONS, PLEASE CONTACT YOUR INSURANCE AGENT WHO WILL BE HAPPY TO PROVIDE YOU WITH MORE DETAILS.
MPIL 1017 01 10 Page1 of 1
MARKEL INSURANCE COMPANY
MJIL 1000 06 10 Page 1 of 1
A STOCK COMPANY
INSURANCE POLICY
Coverage afforded by this policy is provided by the Company (Insurer) and named in the Declarations.
In Witness Whereof, the company (insurer) has caused this policy to be executed and attested and countersigned by a duly authorized representative of the company (insurer) identified in the Declarations.
Secretary P
resident
MARKEL INSURANCE COMPANY
10275 West Higgins Road, Suite 750
Rosemont, IL 60018
(800) 431-1270
BUSINESSOWNERS POLICY DECLARATIONSPOLICY NUMBER: RENEWAL OF POLICY:NamedInsuredandMailingAddress(No.,Street,TownorCity,County,State,ZipCode) Policy Period: Fromto, at 12:01 A.M. Standard Time at your mailing address shown above.IN RETURN FOR THE PAYMENT OF THE PREMIUM, AND SUBJECT TO ALL THE TERMS OFTHIS POLICY, WE AGREE WITH YOU TO PROVIDE THE INSURANCE AS STATED IN THISPOLICY. Premises InformationPrem.No.Bldg.No.Premises Address:Prem.No.Bldg.No.Mortgageholder Name:Mortgageholder Address:Description Of BusinessForm Of Business:Individual PartnershipJoint VentureLimited Liability CompanyOrganization,includingacorporation(butnotincludingapartnership,jointventureorlimitedliabilitycompany)Business Description:
MDBP 1000 11 16 PageIncludes copyrighted material of Insurance Services Office, Inc.,with its permission.of Producer Name, Mailing Address, and Number
BOM0008660-06 BOM0008660-05
10/11/2023 10/11/2024
Play House LLC
DBA: Director's Cut
X
Restaurants - Fast Food Restaurants - Hamburger/Malt Shops 1 3
SEE ATTACHED PREMISES COVERAGE SCHEDULE
2319 Central Ave
Alameda, CA 94501-4513
Markel Insurance Company
1Broker, L.P.
1615 Hill Rd
Ste 21
Novato, CA 94947
SECTION I
PROPERTY Blanket InsuranceIndicate the type of property to be blanketed and the blanket limit of insurance.Type Of Property Limit Of InsuranceAdditional Coverages Optional Higher Limits/ExtendedNumber Of Days (Per Policy)Limit Of Insurance/ExtendedNumber Of DaysCoverage Additional PremiumForgery Or AlterationBusiness Income Extended NumberOf Days For Ordinary Payroll Expenses DaysExtended Business Income Extended Number Of Days DaysElectronic Data
Increased Limit(Section I
Property)Interruption Of ComputerOperations
Increased LimitAdditionalCoverage Business Income Ordinary Payroll Additional ExemptionsCoverageExempt Job ClassificationsExempt EmployeesBusiness IncomeAdditional Coverage Optional Higher LimitCoverage Additional Premium Limit Of InsuranceBusiness Income FromDependent PropertiesAdditional Coverage Business Income From Dependent PropertiesSecondary Dependent Properties:YesNoOptional Coverage Applicable To All Locations (Only if an "X" is shown in the boxes below)Coverage Limit Of Insurance1.Employee DishonestyEquipment BreakdownBurglary And Robbery Per Occurrence2.3.(Named Peril Endorsement only)Money And Securities Inside The PremisesOutside The Premises(Amount included when BurglaryAnd Robbery Option is selected)4.Other: Specify:SECTION II LIABILITY AND MEDICAL EXPENSESEachpaidclaimforthefollowingcoveragesreducestheamountofinsuranceweprovideduringtheapplicableannualperiod.PleaserefertoSectionII LiabilityintheBusinessownersCoverageFormandanyattachedendorsements.MDBP 1000 11 16 Page 2 of 3Includes copyrighted material of Insurance Services Office, Inc.,with its permission.
X $10,000
Included $50,000
X Included
Coverage Limit Of InsuranceLiability And Medical Expenses Per OccurrencePer PersonAny One PremisesMedical ExpensesDamage To Premises Rented To YouOther Than Products/Completed OperationsAggregateProducts/Completed Operations AggregateOptional Coverages (Applicable only if an "X" is shown in the boxes below)Broadened Coverage For Damage To Per OccurrencePremises Rented To You (BP 04 55)Self-storage Facilities Customer Goods Per OccurrenceLegal Liability(Optional Increased Limits)Motels Liability For Guests' PropertyPer OccurrencePer GuestPer Occurrence(Optional Limits)Motels Liability For Guests' Property InSafe Deposit BoxesDeductibleOptional Property Damage Liability Deductible:Per Claim (Refer to BP 07 03); or Per Occurrence (Refer to BP 07 04)The Total Annual Premium is , and is payable$ at inception, andat each anniversary.$Advance Premium:Policies Subject to Premium Audit:Audit Period: AnnuallySemi-annuallyQuarterlyMonthlyEndorsementsForms and Endorsements applying to this Coverage Part and made part of this policy at time of issue:These declarations, together with the Coverage Form(s) and any Endorsement(s), completethe above numbered policy.Countersigned: By:DATE AUTHORIZED REPRESENTATIVE MDBP 1000 11 16 Page 3 of 3Includes copyrighted material of Insurance Services Office, Inc.,with its permission. 09/14/23
SEE FORMS SCHEDULE
$2,000,000
$5,000
$4,000,000
$4,000,000
N/A
$2,200.00
$2,200.00
$1,000,000
BUSINESSOWNERS
POLICY NUMBER:
BUSINESSOWNERS POLICY
PREMISES COVERAGE SCHEDULE
Effective Date:
Premises Information
Prem.
No.
Bldg.
No. Occupancy: Premises Address:
Mortgageholder Name: Mortgageholder Address:
SECTION I
PROPERTY
Property Coverage Limits Of Insurance
Business
Personal
Property
Seasonal
Increase
(Percentage)
Automatic
Increase
Bldg. Limit
Actual Cash
Value Of
Bldg. Option
(Yes Or No)
Type Of Property
(Building Or Business And Personal
Property)
(Percent-
age) Limit Of Insurance
Deductibles (Apply Per Location, Per Occurrence)
Earthquake/Volcanic
Action PercentageOptional Coverage
Deductible
Windstorm Or Hail
Percentage DeductibleProperty Deductible Deductible
Property Coverage - Applicable To This Location
Coverage Limit Of Insurance
Accounts Receivable Inside The Premises Outside The P remises Valuable Papers and Records Inside The Premises Out side The Premises Money And Securities Inside The Premises Outside The Premises Fire Department Service
Charge
Per Premises
Outdoor Property
Outdoor Signs Per Occurrence
Business Personal Property
Temporarily In Portable
Storage Units
Other: Specify:
SECTION II
LIABILITY AND MEDICAL EXPENSES
Class Code No. / Description Premium Basis Exposure
MDBP 1005 11 16 PageIncludes copyrighted material of Insurance Services Office, Inc., with its permission.
of
BOM0008660-06
10/11/2023
1 1
2319 Central Ave
ALAMEDA, CA 94501
MARKEL INSURANCE COMPANY
$50,000 $25,000
$50,000 $25,000
$25,000 $10,000
$5,000
001 001 Tenant
$1,000 $500 N/A
09151 Hamburger/Malt Shops Gross Sales
Personal Property 25% $10,000
$200,000
BUSINESSOWNERS
POLICY NUMBER:
RESTAURANTS SUPPLEMENTAL SCHEDULE
This Schedule may be used in conjunction with the Businessowners Policy Declarations when it is used to insure Restaurants and modified by the Restaurants Endorsement.
Restaurants Endorsement : Applicable only to premis es for which entries are shown below:
MDBP 1002 01 13 Includes copyrighted material of Insurance Services Office, Inc., with its permission.
Premises Information
Prem.
No.
Bldg.
No. Premises Address Premium
Page of
BOM0008660-06
1 3
MARKEL INSURANCE COMPANY
001 001 Included2319 Central Ave
ALAMEDA, CA 94501
Changes In Limits: Applicable only to each coverage for which an "X" is shown in a box below:
Premises:
Limit Of Insurance Premium
1. Food Contamination 1. per occurrence
2. Additional Advertising
Expenses
2. per occurrence
3. Spoilage 3. per occurrence
Premises:
Limit Of Insurance Premium
1. Food Contamination 1. per occurrence
2. Additional Advertising
Expenses
2. per occurrence
3. Spoilage 3. per occurrence
Premises:
Limit Of Insurance Premium
1. Food Contamination 1. per occurrence
2. Additional Advertising
Expenses
2. per occurrence
3. Spoilage 3. per occurrence
Premises:
Limit Of Insurance Premium
1. Food Contamination 1. per occurrence
2. Additional Advertising
Expenses
2. per occurrence
3. Spoilage 3. per occurrence
MDBP 1002 01 13 Includes copyrighted material of Insurance Services Office, Inc., with its permission.
Page of 2 3
Deductible Other Than Collision
Prem.
No.
Limit Of Liability
(Per Event)
Collision
Deductible
Premium for all premises:
Maximum
Deductible In Any One
Event
For Each
Customer's Auto
MDBP 1002 01 13 Includes copyrighted material of Insurance Services Office, Inc., with its permission.
Page of
Restaurants-Loss or Damage To Customers' Autos (Leg al Liability Coverage) Endorsement : Applicable only to premises for which entries are shown below:
3 3
Included
POLICY NUMBER:
FORMS SCHEDULE
Form Number Form Name
MDIL 1001 08 10 Page of
MARKEL INSURANCE COMPANY
BOM0008660-06
1 1
MJIL 1000 (06-10)
MDBP 1000 (11-16)
MDBP 1005 (11-16)
MDBP 1002 (01-13)
BP IN 01 (07-13)
BP 00 03 (07-13)
BP 01 55 (12-19)
BP 04 17 (01-10)
BP 04 30 (07-13)
BP 04 39 (07-02)
BP 04 48 (07-13)
BP 04 48 (07-13)
BP 04 53 (07-13)
BP 04 89 (01-10)
BP 04 92 (07-02)
BP 05 01 (07-02)
BP 05 17 (01-06)
BP 05 24 (01-15)
BP 06 86 (05-17)
BP 07 78 (07-13)
BP 14 86 (07-13)
BP 14 88 (07-13)
BP 15 11 (12-16)
MBP 2001 (01-10)
MBP 2008 (11-16)
MBP 2033 (11-16)
MBP 3000 (01-10)
MBP 3001 (11-16)
MBP 3005 (01-10)
MBP 3006 (11-16)
MBP 3007 (11-16)
MBP 3008 (11-16)
MBP 3009 (01-10)
MBP 3030 (10-20)
MIL 1214 (09-17)
Signature Page
Businessowners Policy Declarations
Businessowners Policy Premises Coverage Schedule
Restaurant Supplemental Schedule
Businessowners Coverage Form Index
Businessowners Coverage Form
California Changes
Employment-related Practices Exclusion
Protective Safeguards
Abuse Or Molestation Exclusion
Additional Insured - Designated Person Or Organization
Additional Insured - Designated Person Or Organization
Water Back-up And Sump Overflow
Liquor Liability Coverage
Total Pollution Exclusion
Calculation Of Premium
Exclusion - Silica Or Silica-Related Dust
Exclusion Of Certified Acts Of Terrorism
California - Hired Auto And Non-owned Auto Liability
Restaurants
Communicable Disease Exclusion
Primary And Noncontributory - Other Insurance Condition Exclusion - Unmanned Aircraft
Equipment Breakdown Enhancement Endorsement
Two Or More Coverage Forms Or Policies Issued By Us
Businessowners Select Endorsement
Animal Exclusion
Exclusion - Asbestos
Cross Liability Exclusion
Exclusion - Fungi, Wet Rot or Dry Rot
Exclusion - Lead
Exclusion - Fungi Or Bacteria
Punitive Damages Exclusion
Exclusion - Cyber Incident, Data Compromise, And Violation Of Statutes Related To Personal Data
Trade Or Economic Sanctions
BUSINESSOWNERS
BP IN 01 07 13
BP IN 01 07 13 © Insurance Services Office, Inc., 2012 Page 1 of 5
BUSINESSOWNERS COVERAGE FORM INDEX
This index is provided only as a convenience. It should not be assumed to provide a reference to every provision that can affect a question, claim or coverage. To determine the full scope of coverage and pertinent restr ictions and exclusions, the policy (including endorsements) must be read in its entirety. The features may also be affected by related provisions not referenced at all in the index, or noted elsewhere in it. For instance, an Exclusion feature addresses a s pecific policy exclusion; but restrictions of coverage and exclusions also appear within the areas where coverage, covered causes of loss, etc., are described.
Businessowners Coverage Feature
Page
Number Businessowners Coverage Feature
Page
Number
Abandonment Property Loss Condition 24 Business Liability Coverage 34-36 Accounts Receivable Coverage Extension 16 Business Personal Property Coverage 1-2 Accounts Receivable Exclusion 22 Business Personal Property Limit – Seasonal Increase (Limit Of Insurance)
23 Acts Or Decisions Exclusion 22 Business Personal Property Temporarily In Portable Storage Units Coverage Extension
17 Additional Coverages 3-14 Cancellation Condition 50
Additional Exclusion – Loss Or Damage To
Products Exclusion
22 Certain Computer-related Losses
Exclusion
19 "Advertisement" Definition 46 Changes Condition 51
Aggregate Limits (Liability And Medical
Expenses Limits Of Insurance)
45 Changes In Or Extremes Of Temperature
Exclusion
21 Aircraft, Auto Or Watercraft Exclusion 38-39 Civil Authority Additional Coverage 8-9 Appraisal Property Loss Condition 24 Collapse Additional Coverage 5-6 "Auto" Definition 46 Collapse Exclusion 21
Bankruptcy General Condition 45 "Computer" Definition 32 "Bodily Injury" Definition 46 Concealment, Misrepresentation Or Fraud Condition
51 Building Coverage 1 Consequential Losses Exclusion 20 Building Limit – Automatic Increase (Limits
Of Insurance)
23 Continuous Or Repeated Seepage Or
Leakage Of Water Exclusion
21-22
Business Income Additional Coverage 6-7 Contractual Liability Exclusion 36 Business Income And Extra Expense
Exclusions
22 Control Of Property General Condition 28
Business Income From Dependent
Properties Additional Coverage
10-11 "Counterfeit Money" Definition 32
Businessowners Coverage Feature
Page
Number Businessowners Coverage Feature
Page
Number
Coverage Extension – Supplementary
Payments (Business Liability Coverage)
35-36 Employer's Liability Exclusion 37
Coverage Extensions – Section I –
Property
14-17 Equipment Breakdown Protection Optional
Coverage
31-32
"Coverage Territory" Definition 46-47 Errors Or Omissions Exclusion 21 Covered Causes Of Loss 2 Examination Of Your Books And Records Condition
51 Covered Property 1-2 Exclusions – Section I – Property 17-22 Damage To Impaired Property Or Property
Not Physically Injured Exclusion
40 Exclusions – Section II – Liability 36-44
Damage To Property Exclusion 40 "Executive Officer" Definition 47 Damage To Your Product Exclusion 40 Expected Or Intended Injury Exclusion 36 Damage To Your Work Exclusion 40 Exposed Property Exclusion 20 Dampness Or Dryness Of Atmosphere
Exclusion
21 Extended Business Income Coverage
(Business Income Additional Coverage)
7 Debris Removal Additional Coverage 3-4 Extra Expense Additional Coverage 7-8 Deductibles 23-24 False Pretense Exclusion 20
Dishonesty Exclusion 20 Fire Department Service Charge Additional Coverage
5 Duties In The Event Of Loss Or Damage
Property Loss Condition
24 Fire Extinguisher Systems Recharge
Expense Additional Coverage
11-12
Duties In The Event Of Occurrence,
Offense, Claim Or Suit General Condition
46 Forgery Or Alteration Additional Coverage 9
Earth Movement Exclusion 17-18 Frozen Plumbing Exclusion 20 Electrical Apparatus Exclusion 19-20 "Fungi" Definition 32 Electrical Disturbance Exclusion 21 "Fungi", Wet Rot Or Dry Rot Exclusion 19 Electronic Data Additional Coverage 12 Glass Expenses Additional Coverage 11 "Electronic Data" Definition 32 Governmental Action Exclusion 18 Electronic Data Exclusion 41-42 "Hostile Fire" Definition 47 "Employee" Definition 47 "Impaired Property" Definition 47 Employee Dishonesty Optional Coverage 29-31 Increased Cost Of Construction Additional Coverage
9-10
BP IN 01 07 13 © Insurance Services Office, Inc., 2012 Page 3 of 5
Businessowners Coverage Feature
Page
Number Businessowners Coverage Feature
Page
Number
Inspections And Surveys Condition 51 Medical Expenses Exclusions 42-44 Installation, Testing, Repair Exclusion 21 "Member" Definition 32 Insurance Under Two Or More Coverages
Condition
51 Mobile Equipment Exclusion 39
"Insured Contract" Definition 47 "Mobile Equipment" Definition 48 Interruption Of Computer Operations
Additional Coverage
12-13 Money And Securities Optional Coverage 29
"Leased Worker" Definition 47 "Money" Definition 32
Legal Action Against Us General Condition
– Section II – Liability
46 Money Orders And "Counterfeit Money"
Additional Coverage
9 Legal Action Against Us Property Loss
Condition – Section I – Property
24 Mortgageholders Property General
Condition
28 Liability And Medical Expenses Definitions 46-50 Neglect Exclusion 21 Liability And Medical Expenses General
Conditions
45-46 Negligent Work Exclusion 22
Liability And Medical Expenses Limits Of
Insurance
45 Nesting Or Infestation Exclusion 21
Liberalization Condition 51 Newly Acquired Or Constructed Property Coverage Extension
14-15
Limitations 2-3 No Benefit To Bailee Property General
Condition
28 Limited Coverage For "Fungi", Wet Rot Or
Dry Rot Additional Coverage
13-14 Nuclear Energy Liability Exclusion 42-44
Limits Of Insurance – Section I – Property 23 Nuclear Hazard Exclusion 18 Liquor Liability Exclusion 36-37 "Occurrence" Definition 48 "Loading Or Unloading" Definition 48 "Operations" Definition 32 Loss Payment Property Loss Condition 24-27 Optional Coverages 28-32 "Manager" Definition 32 Ordinance Or Law Exclusion 17
Marring Or Scratching Exclusion 21 Other Insurance Condition 51 Mechanical Breakdown Exclusion 21 Other Types Of Loss Exclusion 21 Medical Expenses Coverage 36 Outdoor Property Coverage Extension 15
Businessowners Coverage Feature
Page
Number Businessowners Coverage Feature
Page
Number
Outdoor Signs Optional Coverage 28-29 Property Not Covered 2 "Period Of Restoration" Definition 32 Recall Of Products, Work Or Impaired Property Exclusion
40 "Personal And Advertising Injury" Definition 48 Recovered Property Loss Condition 27 Personal And Advertising Injury Exclusion 40-41 Resumption Of Operations Property Loss Condition
27 Personal Effects Coverage Extension 15 Rust Or Other Corrosion Exclusion 21 Personal Property Off-premises
Coverage Extension
15 Section I – Property 1-33
Policy Period, Coverage Territory Property
General Condition
28 Section II – Liability 34-50
Pollutant Clean-up And Removal
Additional Coverage
8 Section III – Common Policy Conditions 50-52
"Pollutants" Definition – Section I –
Property
33 "Securities" Definition 33
"Pollutants" Definition – Section II –
Liability
48 Separation Of Insureds General Condition 46
Pollution Exclusion – Section I – Property 21 Settling, Cracking, Shrinking Or Expansion Exclusion
21 Pollution Exclusion – Section II – Liability 37-38 Smog Exclusion 21 Premium Audit Condition 52 Smoke, Vapor, Gas Exclusion 20 Premiums Condition 51-52 "Specified Causes Of Loss" Definition 33 Preservation Of Property Additional
Coverage
4-5 Steam Apparatus Exclusion 20
"Products-completed Operations Hazard"
Definition
49 "Stock" Definition 33
Professional Services Exclusion 39-40 "Suit" Definition 49 "Property Damage" Definition 49 "Temporary Worker" Definition 49 Property Definitions 32-33 Transfer Of Rights Of Recovery Against Others To Us Condition
52 Property General Conditions 28 Transfer Of Your Rights And Duties Under This Policy Condition
52 Property Loss Conditions 24-28 Utility Services Exclusion 18
BP IN 01 07 13 © Insurance Services Office, Inc., 2012 Page 5 of 5
Businessowners Coverage Feature
Page
Number Businessowners Coverage Feature
Page
Number
Vacancy Property Loss Condition 27 Water Damage, Other Liquids, Powder Or Molten Material Damage Additional
Coverage
6 Valuable Papers And Records Coverage
Extension
15-16 Water Exclusion 19
"Valuable Papers And Records" Definition 33 Wear And Tear Exclusion 21 Violation Of Customer Protection Statutes
Exclusion
42 Weather Conditions Exclusion 22
Virus Or Bacteria Exclusion 19 Who Is An Insured 44-45
"Volunteer Worker" Definition 49 Workers' Compensation And Similar Laws Exclusion
37 War And Military Action Exclusion 18 "Your Product" Definition 49-50 War Exclusion 39 "Your Work" Definition 50
BUSINESSOWNERS
BP 00 03 07 13
BP 00 03 07 13 © Insurance Services Office, Inc., 2012 Page 1 of 53
BUSINESSOWNERS COVERAGE FORM
Various provisions in this policy restrict coverage.
Read the entire policy carefully to determine rights,
duties and what is and is not covered.
Throughout this Coverage Form, the words "you" and
"your" refer to the Named Insured shown in the
Declarations. The words "we", "us" and "our" refer to
the company providing this insurance.
In Section II – Liability, the word "insured" means any person or organization qualifying as such under
Paragraph C. Who Is An Insured.
Other words and phrases that appear in quotation
marks have special meaning. Refer to Paragraph H.
Property Definitions in Section I – Property and
Paragraph F. Liability And Medical Expenses
Definitions in Section II – Liability.
SECTION I – PROPERTY
A. Coverage
We will pay for direct physical loss of or damage to
Covered Property at the premises described in the
Declarations caused by or resulting from any
Covered Cause of Loss.
1. Covered Property
Covered Property includes Buildings as
described under Paragraph a. below, Business
Personal Property as described under
Paragraph b. below, or both, depending on
whether a Limit Of Insurance is shown in the
Declarations for that type of property.
Regardless of whether coverage is shown in
the Declarations for Buildings, Business
Personal Property, or both, there is no
coverage for property described under
Paragraph 2. Property Not Covered.
a. Buildings, meaning the buildings and
structures at the prem ises described in the
Declarations, including:
(1) Completed additions;
(2) Fixtures, including outdoor fixtures;
(3) Permanently installed:
(a) Machinery; and
(b) Equipment;
(4) Your personal property in apartments,
rooms or common areas furnished by
you as landlord;
(5) Personal property ow ned by you that is
used to maintain or service the buildings
or structures or the premises, including:
(a) Fire extinguishing equipment;
(b) Outdoor furniture;
(c) Floor coverings; and
(d) Appliances used for refrigerating,
ventilating, cooking, dishwashing or
laundering;
(6) If not covered by other insurance:
(a) Additions under construction,
alterations and repairs to the
buildings or structures;
(b) Materials, equipment, supplies and
temporary structures, on or within
100 feet of the described premises,
used for making additions,
alterations or repairs to the buildings
or structures.
b. Business Personal Property located in or on
the buildings or structures at the described
premises or in the open (or in a vehicle)
within 100 feet of the buildings or structures
or within 100 feet of the premises described
in the Declarations, whichever distance is
greater, including:
(1) Property you own that is used in your
business;
(2) Property of others that is in your care,
custody or control, except as otherwise
provided in Loss Payment Property Loss
Condition Paragraph E.5.d.(3)(b);
(3) Tenant's improvements and
betterments. Improvements and
betterments are fixtures, alterations,
installations or additions:
(a) Made a part of the building or
structure you occupy but do not own;
and
(b) You acquired or made at your
expense but cannot legally remove;
(4) Leased personal property which you
have a contractual responsibility to
insure, unless otherwise provided for
under Paragraph 1.b.(2); and
(5) Exterior building glass, if you are a
tenant and no Limit Of Insurance is
shown in the Declarations for Building
property. The glass must be owned by
you or in your care, custody or control.
2. Property Not Covered
Covered Property does not include:
a. Aircraft, automobiles, motortrucks and other
vehicles subject to motor vehicle
registration;
b. "Money" or "securities" except as provided
in the:
(1) Money And Securities Optional
Coverage; or
(2) Employee Dishonesty Optional
Coverage;
c. Contraband, or property in the course of
illegal transportation or trade;
d. Land (including land on which the property
is located), water, growing crops or lawns
(other than lawns which are part of a
vegetated roof);
e. Outdoor fences, radio or television
antennas (including satellite dishes) and
their lead-in wiring, masts or towers, signs
(other than signs attached to buildings),
trees, shrubs or plants (other than trees,
shrubs or plants which are part of a
vegetated roof), all ex cept as provided in
the:
(1) Outdoor Property Coverage Extension;
or
(2) Outdoor Signs Optional Coverage;
f. Watercraft (including motors, equipment
and accessories) while afloat;
g. Accounts, bills, f ood stamps, other
evidences of debt, accounts receivable or
"valuable papers and records"; except as
otherwise provided in this policy;
h. "Computer(s)" which are permanently
installed or designed to be permanently
installed in any aircraft, watercraft,
motortruck or other vehicle subject to motor
vehicle registration. This paragraph does
not apply to "computer(s)" while held as
"stock";
i. "Electronic data", except as provided under
Additional Coverages – Electronic Data.
This Paragraph i. does not apply to your
"stock" of prepackaged software or to
"electronic data" which is integrated in and
operates or controls t he building's elevator,
lighting, heating, ventilation, air conditioning
or security system; or
j. Animals, unless owned by others and
boarded by you, or if owned by you, only as
"stock" while inside of buildings.
3. Covered Causes Of Loss
Direct physical loss unless the loss is excluded
or limited under Section I – Property.
4. Limitations
a. We will not pay for loss of or damage to:
(1) Steam boilers, steam pipes, steam
engines or steam turbines caused by or
resulting from any condition or event
inside such equipment. But we will pay
for loss of or damage to such equipment
caused by or resulting from an explosion
of gases or fuel within the furnace of any
fired vessel or within the flues or
passages through which the gases of
combustion pass.
(2) Hot water boilers or other water heating
equipment caused by or resulting from
any condition or event inside such
boilers or equipment, other than an
explosion.
(3) Property that is missing, where the only
evidence of the loss or damage is a
shortage disclosed on taking inventory,
or other instances where there is no
physical evidence to show what
happened to the property. This limitation
does not apply to the Optional Coverage
for Money and Securities.
(4) Property that has been transferred to a
person or to a place outside the
described premises on the basis of
unauthorized instructions.
(5) The interior of any building or structure,
or to personal property in the building or
structure, caused by or resulting from
rain, snow, sleet, ice, sand or dust,
whether driven by wind or not, unless:
(a) The building or structure first
sustains damage by a Covered
Cause of Loss to its roof or walls
through which the rain, snow, sleet,
ice, sand or dust enters; or
BP 00 03 07 13 © Insurance Services Office, Inc., 2012 Page 3 of 53
(b) The loss or damage is caused by or
results from thawing of snow, sleet
or ice on the building or structure.
(6) Lawns, trees, shrubs or plants which are
part of a vegetated roof, caused by or
resulting from:
(a) Dampness or dryness of atmosphere
or of soil supporting the vegetation;
(b) Changes in or extremes of
temperature;
(c) Disease;
(d) Frost or hail; or
(e) Rain, snow, ice or sleet.
b. We will not pay for loss of or damage to the
following types of property unless caused
by the "specified causes of loss" or building
glass breakage:
(1) Animals, and then only if they are killed
or their destruction is made necessary.
(2) Fragile articles such as glassware,
statuary, marble, chinaware and
porcelain, if broken. This restriction does
not apply to:
(a) Glass that is part of the exterior or
interior of a building or structure;
(b) Containers of property held for sale;
or
(c) Photographic or scientific instrument
lenses.
c. For loss or damage by theft, the following
types of property are covered only up to the
limits shown (unless a higher Limit Of
Insurance is shown in the Declarations):
(1) $2,500 for furs, fur garments and
garments trimmed with fur.
(2) $2,500 for jewelry, watches, watch
movements, jewels, pearls, precious
and semiprecious stones, bullion, gold,
silver, platinum and other precious
alloys or metals. This limit does not
apply to jewelry and watches worth
$100 or less per item.
(3) $2,500 for patterns, dies, molds and
forms.
5. Additional Coverages
a. Debris Removal
(1) Subject to Paragraphs (2), (3) and (4),
we will pay your expense to remove
debris of Covered Property and other
debris that is on the described premises,
when such debris is caused by or
results from a Covered Cause of Loss
that occurs during the policy period. The
expenses will be paid only if they are
reported to us in writing within 180 days
of the date of direct physical loss or
damage.
(2) Debris Removal does not apply to costs
to:
(a) Remove debris of property of yours
that is not insured under this policy,
or property in your possession that is
not Covered Property;
(b) Remove debris of property owned by
or leased to the landlord of the
building where your described
premises are located, unless you
have a contractual responsibility to
insure such property and it is insured
under this policy;
(c) Remove any property that is
Property Not Covered, including
property addressed under the
Outdoor Property Coverage
Extension;
(d) Remove property of others of a type
that would not be Covered Property
under this policy;
(e) Remove deposits of mud or earth
from the grounds of the described
premises;
(f) Extract "pollutants" from land or
water; or
(g) Remove, restore or replace polluted
land or water.
(3) Subject to the exceptions in Paragraph
(4), the following provisions apply:
(a) The most that we will pay for the
total of direct physical loss or
damage plus debris removal
expense is the Limit of Insurance
applicable to the Covered Property
that has sustained loss or damage.
(b) Subject to Paragraph (3)(a) above,
the amount we will pay for debris
removal expense is limited to 25% of
the sum of the deductible plus the
amount that we pay for direct
physical loss or damage to the
Covered Property that has sustained
loss or damage. However, if no
Covered Property has sustained
direct physical loss or damage, the
most we will pay for removal of
debris of other property (if such
removal is covered under this
Additional Coverage) is $5,000 at
each location.
(4) We will pay up to an additional $25,000
for debris removal expense, for each
location, in any one occurrence of
physical loss or damage to Covered
Property, if one or both of the following
circumstances apply:
(a) The total of the actual debris removal
expense plus the amount we pay for
direct physical loss or damage
exceeds the Limit of Insurance on
the Covered Property that has
sustained loss or damage.
(b) The actual debris removal expense
exceeds 25% of the sum of the
deductible plus the amount that we
pay for direct physical loss or
damage to the Covered Property that
has sustained loss or damage.
Therefore, if Paragraphs (4)(a) and/or
(4)(b) apply, our total payment for direct
physical loss or damage and debris
removal expense may reach but will
never exceed the Limit of Insurance on
the Covered Property that has sustained
loss or damage, plus $25,000.
(5) Examples
Example 1
Limit of Insurance $ 90,000
Amount of Deductible $ 500
Amount of Loss $ 50,000
Amount of Loss Payable $ 49,500
($50,000 – $500)
Debris Removal Expense $ 10,000
Debris Removal Expense
Payable $ 10,000
($10,000 is 20% of $50,000)
The debris removal expense is less than
25% of the sum of the loss payable plus
the deductible. The sum of the loss
payable and the debris removal expense
($49,500 + $10,000 = $59,500) is less
than the Limit of Insurance. Therefore,
the full amount of debris removal
expense is payable in accordance with
the terms of Paragraph (3).
Example 2
Limit of Insurance $ 90,000
Amount of Deductible $ 500
Amount of Loss $ 80,000
Amount of Loss Payable $ 79,500
($80,000 – $500)
Debris Removal Expense $ 40,000
Debris Removal Expense
Payable
Basic Amount $ 10,500
Additional Amount $ 25,000
The basic amount payable for debris
removal expense under the terms of
Paragraph (3) is calculated as follows:
$80,000 ($79,500 + $500) x .25 =
$20,000; capped at $10,500. The cap
applies because the sum of the loss
payable ($79,500) and the basic amount
payable for debris removal expense
($10,500) cannot exceed the Limit of
Insurance ($90,000).
The additional amount payable for
debris removal expense is provided in
accordance with the terms of Paragraph
(4), because the debris removal
expense ($40,000) exceeds 25% of the
loss payable plus the deductible
($40,000 is 50% of $80,000), and
because the sum of the loss payable
and debris removal expense ($79,500 +
$40,000 = $119,500) would exceed the
Limit of Insurance ($90,000). The
additional amount of covered debris
removal expense is $25,000, the
maximum payable under Paragraph (4).
Thus, the total payable for debris
removal expense in this example is
$35,500; $4,500 of the debris removal
expense is not covered.
BP 00 03 07 13 © Insurance Services Office, Inc., 2012 Page 5 of 53
b. Preservation Of Property
If it is necessary to move Covered Property
from the described premises to preserve it
from loss or damage by a Covered Cause
of Loss, we will pay for any direct physical
loss of or damage to that property:
(1) While it is being moved or while
temporarily stored at another location;
and
(2) Only if the loss or da mage occurs within
30 days after the property is first moved.
c. Fire Department Service Charge
When the fire department is called to save
or protect Covered Property from a
Covered Cause of Loss , we will pay up to
$2,500 for service at each premises
described in the Declarations, unless a
different limit is shown in the Declarations.
Such limit is the most we will pay
regardless of the number of responding fire
departments or fire units, and regardless of
the number or type of services performed.
This Additional Coverage applies to your
liability for fire department service charges:
(1) Assumed by contract or agreement prior
to loss; or
(2) Required by local ordinance.
d. Collapse
The coverage provided under this
Additional Coverage – Collapse applies
only to an abrupt collapse as described and
limited in Paragraphs d.(1) through d.(7).
(1) For the purpose of this Additional
Coverage – Collapse, abrupt collapse
means an abrupt falling down or caving
in of a building or any part of a building
with the result that the building or part of
the building cannot be occupied for its
intended purpose.
(2) We will pay for direct physical loss or
damage to Covered Property, caused by
abrupt collapse of a building or any part
of a building that is insured under this
policy or that contains Covered Property
insured under this policy, if such
collapse is caused by one or more of the
following:
(a) Building decay that is hidden from
view, unless the presence of such
decay is known to an insured prior to
collapse;
(b) Insect or vermin damage that is
hidden from view, unless the
presence of such damage is known
to an insured prior to collapse;
(c) Use of defective material or methods
in construction, remodeling or
renovation if the abrupt collapse
occurs during the course of the
construction, remodeling or
renovation.
(d) Use of defective material or methods
in construction, remodeling or
renovation if the abrupt collapse
occurs after the construction,
remodeling or renovation is
complete, but only if the collapse is
caused in part by:
(i) A cause of loss listed in
Paragraph (2)(a) or (2)(b);
(ii) One or more of the "specified
causes of loss";
(iii) Breakage of building glass;
(iv) Weight of people or personal
property; or
(v) Weight of rain that collects on a
roof.
(3) This Additional Coverage – Collapse
does not apply to:
(a) A building or any part of a building
that is in danger of falling down or
caving in;
(b) A part of a building that is standing,
even if it has separated from another
part of the building; or
(c) A building that is standing or any part
of a building that is standing, even if
it shows evidence of cracking,
bulging, sagging, bending, leaning,
settling, shrinkage or expansion.
(4) With respect to the following property:
(a) Awnings;
(b) Gutters and downspouts;
(c) Yard fixtures;
(d) Outdoor swimming pools;
(e) Piers, wharves and docks;
(f) Beach or diving platforms or
appurtenances;
(g) Retaining walls; and
(h) Walks, roadways and other paved
surfaces;
if an abrupt collapse is caused by a
cause of loss listed in Paragraphs (2)(a)
through (2)(d), we will pay for loss or
damage to that property only if such loss
or damage is a direct result of the abrupt
collapse of a building insured under this
policy and the property is Covered
Property under this policy.
(5) If personal property abruptly falls down
or caves in and such collapse is not the
result of abrupt collapse of a building,
we will pay for loss or damage to
Covered Property caused by such
collapse of personal property only if:
(a) The collapse of personal property
was caused by a cause of loss listed
in Paragraphs (2)(a) through (2)(d)
of this Additional Coverage;
(b) The personal property which
collapses is inside a building; and
(c) The property which collapses is not
of a kind listed in Paragraph (4),
regardless of whether that kind of
property is considered to be personal
property or real property.
The coverage stated in this Paragraph
(5) does not apply to personal property if
marring and/or scratching is the only
damage to that personal property
caused by the collapse.
(6) This Additional Coverage – Collapse
does not apply to personal property that
has not abruptly fallen down or caved in,
even if the personal property shows
evidence of cracking, bulging, sagging,
bending, leaning, settling, shrinkage or
expansion.
(7) This Additional Coverage – Collapse will
not increase the Limits of Insurance
provided in this policy.
(8) The term Covered Cause of Loss
includes the Additional Coverage –
Collapse as described and limited in
Paragraphs d.(1) through d.(7).
e. Water Damage, Other Liquids, Powder
Or Molten Material Damage
If loss or damage caused by or resulting
from covered water or other liquid, powder
or molten material occurs, we will also pay
the cost to tear out and replace any part of
the building or structure to repair damage to
the system or appliance from which the
water or other substance escapes.
We will not pay the cost to repair any defect
that caused the loss or damage, but we will
pay the cost to repair or replace damaged
parts of fire extinguishing equipment if the
damage:
(1) Results in discharge of any substance
from an automatic fire protection
system; or
(2) Is directly caused by freezing.
f. Business Income
(1) Business Income
(a) We will pay for the actual loss of
Business Income you sustain due to
the necessary sus pension of your
"operations" during the "period of
restoration". The suspension must
be caused by direct physical loss of
or damage to property at the
described premises. The loss or
damage must be caused by or result
from a Covered Cause of Loss. With
respect to loss of or damage to
personal property in the open or
personal property in a vehicle, the
described premises include the area
within 100 feet of such premises.
With respect to the requirements set
forth in the preceding paragraph, if
you occupy only part of a building,
your premises mean:
(i) The portion of the building which
you rent, lease or occupy;
(ii) The area within 100 feet of the
building or within 100 feet of the
premises described in the
Declarations, whichever distance
is greater (with respect to loss of
or damage to personal property
in the open or personal property
in a vehicle); and
(iii) Any area within the building or at
the described premises, if that
area services, or is used to gain
access to, the portion of the
building which you rent, lease or
occupy.
BP 00 03 07 13 © Insurance Services Office, Inc., 2012 Page 7 of 53
(b) We will only pay for loss of Business
Income that you sustain during the
"period of restoration" and that
occurs within 12 consecutive months
after the date of direct physical loss
or damage. We will only pay for
ordinary payroll expenses for 60
days following the date of direct
physical loss or damage, unless a
greater number of days is shown in
the Declarations.
(c) Business Income means the:
(i) Net Income (Net Profit or Loss
before income taxes) that would
have been earned or incurred if
no physical loss or damage had
occurred, but not including any
Net Income that would likely have
been earned as a result of an
increase in the volume of
business due to favorable
business conditions caused by
the impact of the Covered Cause
of Loss on customers or on other
businesses; and
(ii) Continuing normal operating
expenses incurred, including
payroll.
(d) Ordinary payroll expenses:
(i) Means payroll expenses for all
your employees except:
i. Officers;
ii. Executives;
iii. Department Managers;
iv. Employees under contract;
and
v. Additional Exemptions shown
in the Declarations as:
z Job Classifications; or
z Employees.
(ii) Include:
i. Payroll;
ii. Employee benefits, if directly
related to payroll;
iii. FICA payments you pay;
iv. Union dues you pay; and
v. Workers' compensation
premiums.
(2) Extended Business Income
(a) If the necessary suspension of your
"operations" produces a Business
Income loss payable under this
policy, we will pay for the actual loss
of Business Income you incur during
the period that:
(i) Begins on the date property
except finished stock is actually
repaired, rebuilt or replaced and
"operations" are resumed; and
(ii) Ends on the earlier of:
i. The date you could restore
your "operations", with
reasonable speed, to the level
which would generate the
Business Income amount that
would have existed if no direct
physical loss or damage had
occurred; or
ii. 60 consecutive days after the
date determined in Paragraph
(a)(i) above, unless a greater
number of consecutive days is
shown in the Declarations.
However, Extended Business
Income does not apply to loss of
Business Income incurred as a result
of unfavorable business conditions
caused by the impact of the Covered
Cause of Loss in the area where the
described premises are located.
(b) Loss of Business Income must be
caused by direct physical loss or
damage at the described premises
caused by or resulting from any
Covered Cause of Loss.
(3) With respect to the coverage provided in
this Additional Coverage, suspension
means:
(a) The partial slowdown or complete
cessation of your business activities;
or
(b) That a part or all of the described
premises is rendered untenantable, if
coverage for Business Income
applies.
(4) This Additional Coverage is not subject
to the Limits of Insurance of Section I –
Property.
g. Extra Expense
(1) We will pay necessary Extra Expense
you incur during the "period of
restoration" that you would not have
incurred if there had been no direct
physical loss or damage to property at
the described premises. The loss or
damage must be caused by or result
from a Covered Cause of Loss. With
respect to loss of or damage to personal
property in the open or personal
property in a vehicle, the described
premises include the area within 100
feet of such premises.
With respect to the requirements set
forth in the preceding paragraph, if you
occupy only part of a building, your
premises mean:
(a) The portion of the building which you
rent, lease or occupy;
(b) The area within 100 feet of the
building or within 100 feet of the
premises described in the
Declarations, whichever distance is
greater (with respect to loss of or
damage to personal property in the
open or personal property in a
vehicle); and
(c) Any area within the building or at the
described premises, if that area
services, or is used to gain access
to, the portion of the building which
you rent, lease or occupy.
(2) Extra Expense means expense
incurred:
(a) To avoid or minimize the suspension
of business and to continue
"operations":
(i) At the described premises; or
(ii) At replacement premises or at
temporary locations, including
relocation expenses, and costs to
equip and operate the
replacement or temporary
locations.
(b) To minimize the suspension of
business if you cannot continue
"operations".
(c) To:
(i) Repair or replace any property; or
(ii) Research, replace or restore the
lost information on damaged
"valuable papers and records";
to the extent it reduces the amount
of loss that otherwise would have
been payable under this Additional
Coverage or Additional Coverage f.
Business Income.
(3) With respect to the coverage provided in
this Additional Coverage, suspension
means:
(a) The partial slowdown or complete
cessation of your business activities;
or
(b) That a part or all of the described
premises is rendered untenantable, if
coverage for Business Income
applies.
(4) We will only pay for Extra Expense that
occurs within 12 consecutive months
after the date of direct physical loss or
damage. This Additional Coverage is
not subject to the Limits of Insurance of
Section I – Property.
h. Pollutant Clean-up And Removal
We will pay your expense to extract
"pollutants" from land or water at the
described premises if the discharge,
dispersal, seepage, migration, release or
escape of the "pollutants" is caused by or
results from a Covered Cause of Loss that
occurs during the policy period. The
expenses will be paid only if they are
reported to us in writing within 180 days of
the date on which the Covered Cause of
Loss occurs.
This Additional Coverage does not apply to
costs to test for, monitor or assess the
existence, concentration or effects of
"pollutants". But we will pay for testing
which is performed in the course of
extracting the "pollutants" from the land or
water.
The most we will pay for each location
under this Additional Coverage is $10,000
for the sum of all such expenses arising out
of Covered Causes of Loss occurring
during each separate 12-month period of
this policy.
BP 00 03 07 13 © Insurance Services Office, Inc., 2012 Page 9 of 53
i. Civil Authority
When a Covered Cause of Loss causes
damage to property other than property at
the described premises, we will pay for the
actual loss of Business Income you sustain
and necessary Extra Expense caused by
action of civil authority that prohibits access
to the described premises, provided that
both of the following apply:
(1) Access to the area immediately
surrounding the damaged property is
prohibited by civil authority as a result of
the damage, and the described
premises are within that area but are not
more than one mile from the damaged
property; and
(2) The action of civil authority is taken in
response to dangerous physical
conditions resulting from the damage or
continuation of the Covered Cause of
Loss that caused the damage, or the
action is taken to enable a civil authority
to have unimpeded access to the
damaged property.
Civil Authority Coverage for Business
Income will begin 72 hours after the time of
the first action of civil authority that prohibits
access to the described premises and will
apply for a period of up to four consecutive
weeks from the date on which such
coverage began.
Civil Authority Coverage for necessary
Extra Expense will begin immediately after
the time of the first action of civil authority
that prohibits access to the described
premises and will end:
(1) Four consecutive weeks after the date
of that action; or
(2) When your Civil Authority Coverage for
Business Income ends;
whichever is later.
The definitions of Business Income and
Extra Expense contained in the Business
Income and Extra Expense Additional
Coverages also apply to this Civil Authority
Additional Coverage. The Civil Authority
Additional Coverage is not subject to the
Limits of Insurance of Section I – Property.
j. Money Orders And "Counterfeit Money"
We will pay for loss resu lting directly from
your having accepted in good faith, in
exchange for merchandise, "money" or
services:
(1) Money orders issued by any post office,
express company or bank that are not
paid upon presentation; or
(2) "Counterfeit money" that is acquired
during the regular course of business.
The most we will pay for any loss under this
Additional Coverage is $1,000.
k. Forgery Or Alteration
(1) We will pay for loss resulting directly
from forgery or alteration of any check,
draft, promissory note, bill of exchange
or similar written promise of payment in
"money" that you or your agent has
issued, or that was issued by someone
who impersonates you or your agent.
(2) If you are sued for refusing to pay the
check, draft, promissory note, bill of
exchange or similar written promise of
payment in "money", on the basis that it
has been forged or altered, and you
have our written consent to defend
against the suit, we will pay for any
reasonable legal expenses that you
incur in that defense.
(3) For the purpose of this coverage, check
includes a substitute check as defined in
the Check Clearing for the 21st Century
Act and will be treated the same as the
original it replaced.
(4) The most we will pay for any loss,
including legal expenses, under this
Additional Coverage is $2,500, unless a
higher Limit Of Insurance is shown in
the Declarations.
l. Increased Cost Of Construction
(1) This Additional Coverage applies only to
buildings insured on a replacement cost
basis.
(2) In the event of damage by a Covered
Cause of Loss to a building that is
Covered Property, we will pay the
increased costs incurred to comply with
the minimum standards of an ordinance
or law in the course of repair, rebuilding
or replacement of damaged parts of that
property, subject to the limitations stated
in Paragraphs (3)
through (9) of this
Additional Coverage.
(3) The ordinance or law referred to in
Paragraph (2) of this Additional
Coverage is an ordinance or law that
regulates the construction or repair of
buildings or establishes zoning or land
use requirements at the described
premises and is in force at the time of
loss.
(4) Under this Additional Coverage, we will
not pay any costs due to an ordinance
or law that:
(a) You were required to comply with
before the loss, even when the
building was undamaged; and
(b) You failed to comply with.
(5) Under this Additional Coverage, we will
not pay for:
(a) The enforcement of or compliance
with any ordinance or law which
requires demolition, repair,
replacement, reconstruction,
remodeling or remediation of
property due to contamination by
"pollutants" or due to the presence,
growth, proliferation, spread or any
activity of "fungi", wet rot or dry rot;
or
(b) Any costs associated with the
enforcement of or compliance with
an ordinance or law which requires
any insured or others to test for,
monitor, clean up, remove, contain,
treat, detoxify or neutralize, or in any
way respond to, or assess the
effects of "pollutants", "fungi", wet rot
or dry rot.
(6) The most we will pay under this
Additional Coverage, for each described
building insured under Section I –
Property, is $10,000. If a damaged
building(s) is covered under a blanket
Limit of Insurance which applies to more
than one building or item of property,
then the most we will pay under this
Additional Coverage, for each damaged
building, is $10,000.
The amount payable under this
Additional Coverage is additional
insurance.
(7) With respect to this Additional
Coverage:
(a) We will not pay for the Increased
Cost of Construction:
(i) Until the property is actually
repaired or replaced, at the same
or another premises; and
(ii) Unless the repair or replacement
is made as soon as reasonably
possible after the loss or
damage, not to exceed two
years. We may extend this period
in writing during the two years.
(b) If the building is repaired or replaced
at the same premises, or if you elect
to rebuild at another premises, the
most we will pay for the Increased
Cost of Construction is the increased
cost of construction at the same
premises.
(c) If the ordinance or law requires
relocation to another premises, the
most we will pay for the Increased
Cost of Construction is the increased
cost of construction at the new
premises.
(8) This Additional Coverage is not subject
to the terms of the Ordinance Or Law
Exclusion, to the extent that such
exclusion would conflict with the
provisions of this Additional Coverage.
(9) The costs addressed in the Loss
Payment Property Loss Condition in
Section I – Property do not include the
increased cost attributable to
enforcement of or compliance with an
ordinance or law. The amount payable
under this Additional Coverage, as
stated in Paragraph (6) of this Additional
Coverage, is not subject to such
limitation.
m. Business Income From Dependent
Properties
(1)
We will pay for the actual loss of
Business Income you sustain due to
physical loss or damage at the premises
of a dependent property or secondary
dependent property caused by or
resulting from any Covered Cause of
Loss.
BP 00 03 07 13 © Insurance Services Office, Inc., 2012 Page 11 of 53
However, this Additional Coverage does
not apply when the only loss at the
premises of a dependent property or
secondary dependent property is loss or
damage to "electronic data", including
destruction or corruption of "electronic
data". If the dependent property or
secondary dependent property sustains
loss or damage to "electronic data" and
other property, coverage under this
Additional Coverage will not continue
once the other property is repaired,
rebuilt or replaced.
The most we will pay under this
Additional Coverage is $5,000 unless a
higher Limit Of Insurance is indicated in
the Declarations.
(2) We will reduce the amount of your
Business Income loss, other than Extra
Expense, to the extent you can resume
"operations", in whole or in part, by
using any other available:
(a) Source of materials; or
(b) Outlet for your products.
(3) If you do not resume "operations", or do
not resume "operations" as quickly as
possible, we will pay based on the
length of time it would have taken to
resume "operations" as quickly as
possible.
(4) Dependent property means property
owned by others whom you depend on
to:
(a) Deliver materials or services to you,
or to others for your account. But
services does not mean water supply
services, wastewater removal
services, communication supply
services or power supply services;
(b) Accept your products or services;
(c) Manufacture your products for
delivery to your customers under
contract for sale; or
(d) Attract customers to your business.
The dependent property must be located
in the coverage territory of this policy.
(5) Secondary dependent property means
an entity which is not owned or operated
by a dependent property and which;
(a) Delivers materials or services to a
dependent property, which in turn
are used by the dependent property
in providing materials or services to
you; or
(b) Accepts materials or services from a
dependent property, which in turn
accepts your materials or services.
A road, bridge, tunnel, waterway,
airfield, pipeline or any other similar area
or structure is not a secondary
dependent property.
Any property which delivers any of the
following services is not a secondary
dependent property with respect to such
services:
(i) Water supply services;
(ii) Wastewater removal services;
(iii) Communication supply services;
or
(iv) Power supply services.
The secondary dependent property must
be located in the coverage territory of
this policy.
(6) The coverage period for Business
Income under this Additional Coverage:
(a) Begins 72 hours after the time of
direct physical loss or damage
caused by or resulting from any
Covered Cause of Loss at the
premises of the dependent property
or secondary dependent property;
and
(b) Ends on the date when the property
at the premises of the dependent
property or secondary dependent
property should be repaired, rebuilt
or replaced with reasonable speed
and similar quality.
(7) The Business Income coverage period,
as stated in Paragraph (6), does not
include any increased period required
due to the enforcement of or compliance
with any ordinance or law that:
(a) Regulates the construction, use or
repair, or requires the tearing down
of any property; or
(b) Requires any insured or others to
test for, monitor, clean up, remove,
contain, treat, detoxify or neutralize,
or in any way respond to, or assess
the effects of "pollutants".
The expiration date of this policy will not
reduce the Business Income coverage
period.
(8) The definition of Business Income
contained in the Business Income
Additional Coverage also applies to this
Business Income From Dependent
Properties Additional Coverage.
n. Glass Expenses
(1) We will pay for expenses incurred to put
up temporary plates or board up
openings if repair or replacement of
damaged glass is delayed.
(2) We will pay for ex penses incurred to
remove or replace obstructions when
repairing or replacing glass that is part
of a building. This does not include
removing or replacing window displays.
o. Fire Extinguisher Systems Recharge
Expense
(1) We will pay:
(a) The cost of recharging or replacing,
whichever is less, your fire
extinguishers and fire extinguishing
systems (including hydrostatic
testing if needed) if they are
discharged on or within 100 feet of
the described premises; and
(b) For loss or damage to Covered
Property if such loss or damage is
the result of an accidental discharge
of chemicals from a fire extinguisher
or a fire extinguishing system.
(2) No coverage will apply if the fire
extinguishing system is discharged
during installation or testing.
(3) The most we will pay under this
Additional Coverage is $5,000 in any
one occurrence.
p. Electronic Data
(1) Subject to the provisions of this
Additional Coverage, we will pay for the
cost to replace or restore "electronic
data" which has been destroyed or
corrupted by a Covered Cause of Loss.
To the extent that "electronic data" is not
replaced or restored , the loss will be
valued at the cost of replacement of the
media on which the "electronic data"
was stored, with blank media of
substantially identical type.
(2) The Covered Causes of Loss applicable
to Business Personal Property include a
computer virus, harmful code or similar
instruction introduced into or enacted on
a computer system (including "electronic
data") or a network to which it is
connected, designed to damage or
destroy any part of the system or disrupt
its normal operation. But there is no
coverage for loss or damage caused by
or resulting from manipulation of a
computer system (including "electronic
data") by any employee, including a
temporary or leased employee, or by an
entity retained by you, or for you, to
inspect, design, install, modify, maintain,
repair or replace that system.
(3) The most we will pay under this
Additional Coverage – Electronic Data
for all loss or damage sustained in any
one policy year, regardless of the
number of occurrences of loss or
damage or the number of premises,
locations or computer systems involved,
is $10,000, unless a higher Limit Of
Insurance is shown in the Declarations.
If loss payment on the first occurrence
does not exhaust this amount, then the
balance is available for subsequent loss
or damage sustained in, but not after,
that policy year. With respect to an
occurrence which begins in one policy
year and continues or results in
additional loss or damage in a
subsequent policy year(s), all loss or
damage is deemed to be sustained in
the policy year in which the occurrence
began.
(4) This Additional Coverage does not apply
to your "stock" of prepackaged software,
or to "electronic data" which is
integrated in and operates or controls a
building's elevator, lighting, heating,
ventilation, air conditioning or security
system.
q. Interruption Of Computer Operations
(1) Subject to all provisions of this
Additional Coverage, you may extend
the insurance that applies to Business
Income and Extra Expense to apply to a
suspension of "operations" caused by
an interruption in computer operations
due to destruction or corruption of
"electronic data" due to a Covered
Cause of Loss.
BP 00 03 07 13 © Insurance Services Office, Inc., 2012 Page 13 of 53
(2) With respect to the coverage provided
under this Additional Coverage, the
Covered Causes of Loss are subject to
the following:
(a) Coverage under this Additional
Coverage – Interruption Of
Computer Operations is limited to
the "specified causes of loss" and
Collapse.
(b) If the Businessowners Coverage
Form is endorsed to add a Covered
Cause of Loss, the additional
Covered Cause of Loss does not
apply to the coverage provided
under this Additional Coverage.
(c) The Covered Causes of Loss include
a computer virus, harmful code or
similar instruction introduced into or
enacted on a computer system
(including "electronic data") or a
network to which it is connected,
designed to damage or destroy any
part of the system or disrupt its
normal operation. But there is no
coverage for an interruption related
to manipulation of a computer
system (including "electronic data")
by any employee, including a
temporary or leased employee, or by
an entity retained by you, or for you,
to inspect, design, install, modify,
maintain, repair or replace that
system.
(3) The most we will pay under this
Additional Coverage – Interruption Of
Computer Operations for all loss
sustained and expense incurred in any
one policy year, regardless of the
number of interruptions or the number of
premises, locations or computer
systems involved, is $10,000 unless a
higher Limit Of Insurance is shown in
the Declarations. If loss payment
relating to the first interruption does not
exhaust this amount, then the balance is
available for loss or expense sustained
or incurred as a result of subsequent
interruptions in that policy year. A
balance remaining at the end of a policy
year does not increase the amount of
insurance in the next policy year. With
respect to any interruption which begins
in one policy year and continues or
results in additional loss or expense in a
subsequent policy year(s), all loss and
expense is deemed to be sustained or
incurred in the policy year in which the
interruption began.
(4) This Additional Coverage – Interruption
Of Computer Operations does not apply
to loss sustained or expense incurred
after the end of the "period of
restoration", even if the amount of
insurance stated in (3) above has not
been exhausted.
(5) Coverage for Business Income does not
apply when a suspension of "operations"
is caused by destruction or corruption of
"electronic data", or any loss or damage
to "electronic data", except as provided
under Paragraphs (1) through (4) of this
Additional Coverage.
(6) Coverage for Extra Expense does not
apply when action is taken to avoid or
minimize a suspension of "operations"
caused by destruction or corruption of
"electronic data", or any loss or damage
to "electronic data", except as provided
under Paragraphs (1) through (4) of this
Additional Coverage.
(7) This Additional Coverage does not apply
when loss or damage to "electronic
data" involves only "electronic data"
which is integrated in and operates or
controls a building's elevator, lighting,
heating, ventilation, air conditioning or
security system.
r. Limited Coverage For "Fungi", Wet Rot
Or Dry Rot
(1) The coverage described in Paragraphs
r.(2) and r.(6) only applies when the
"fungi", wet rot or dry rot is the result of
a "specified cause of loss" other than
fire or lightning that occurs during the
policy period and only if all reasonable
means were used to save and preserve
the property from further damage at the
time of and after that occurrence.
This Additional Coverage does not apply
to lawns, trees, shrubs or plants which
are part of a vegetated roof.
(2) We will pay for loss or damage by
"fungi", wet rot or dry rot. As used in this
Limited Coverage, the term loss or
damage means:
(a) Direct physical loss or damage to
Covered Property caused by "fungi",
wet rot or dry rot, including the cost
of removal of the "fungi", wet rot or
dry rot;
(b) The cost to tear out and replace any
part of the building or other property
as needed to gain access to the
"fungi", wet rot or dry rot; and
(c) The cost of testing performed after
removal, repair, replacement or
restoration of the damaged property
is completed, provided there is a
reason to believe that "fungi", wet rot
or dry rot is present.
(3) The coverage described under this
Limited Coverage is limited to $15,000.
Regardless of the number of claims, this
limit is the most we will pay for the total
of all loss or damage arising out of all
occurrences of "specified causes of
loss" (other than fire or lightning) which
take place in a 12-month period (starting
with the beginning of the present annual
policy period). With respect to a
particular occurrence of loss which
results in "fungi", we t rot or dry rot, we
will not pay more than the total of
$15,000 even if the "fungi", wet rot or
dry rot continues to be present or active,
or recurs, in a later policy period.
(4) The coverage provided under this
Limited Coverage does not increase the
applicable Limit of Insurance on any
Covered Property. If a particular
occurrence results in loss or damage by
"fungi", wet rot or dry rot, and other loss
or damage, we will not pay more, for the
total of all loss or damage, than the
applicable Limit of Insurance on the
affected Covered Property.
If there is covered loss or damage to
Covered Property, not caused by
"fungi", wet rot or dry rot, loss payment
will not be limited by the terms of this
Limited Coverage, except to the extent
that "fungi", wet rot or dry rot causes an
increase in the loss. Any such increase
in the loss will be subject to the terms of
this Limited Coverage.
(5) The terms of this Limited Coverage do
not increase or reduce the coverage
provided under the Water Damage,
Other Liquids, Powder Or Molten
Material Damage or Collapse Additional
Coverages.
BP 00 03 07 13 © Insurance Services Office, Inc., 2012 Page 15 of 53
(6) The following applies only if Business
Income and/or Extra Expense Coverage
applies to the described premises and
only if the suspension of "operations"
satisfies all the terms and conditions of
the applicable Business Income and/or
Extra Expense Additional Coverage:
(a) If the loss which resulted in "fungi",
wet rot or dry rot does not in itself
necessitate a suspension of
"operations", but such suspension is
necessary due to loss or damage to
property caused by "fungi", wet rot or
dry rot, then our payment under the
Business Income and/or Extra
Expense Additional Coverages is
limited to the amount of loss and/or
expense sustained in a period of not
more than 30 days. The days need
not be consecutive.
(b) If a covered suspension of
"operations" was caused by loss or
damage other than "fungi", wet rot or
dry rot, but remediation of "fungi",
wet rot or dry rot prolongs the "period
of restoration", we will pay for loss
and/or expense sustained during the
delay (regardless of when such a
delay occurs during the "period of
restoration"), but such coverage is
limited to 30 days. The days need
not be consecutive.
6. Coverage Extensions
In addition to the Limits of Insurance of Section
I – Property, you may extend the insurance
provided by this policy as provided below.
Except as otherwise provided, the following
extensions apply to property located in or on
the building described in the Declarations or in
the open (or in a vehicle) within 100 feet of the
described premises:
a. Newly Acquired Or Constructed
Property
(1) Buildings
If this policy covers Buildings, you may
extend that insurance to apply to:
(a) Your new buildings while being built
on the described premises; and
(b) Buildings you acquire at premises
other than the one described,
intended for:
(i) Similar use as the building
described in the Declarations; or
(ii) Use as a warehouse.
The most we will pay for loss or damage
under this Extension is $250,000 at
each building.
(2) Business Personal Property
If this policy covers Business Personal
Property, you may extend that insurance
to apply to:
(a) Business Personal Property,
including such property that you
newly acquire, at any location you
acquire; or
(b) Business Personal Property,
including such property that you
newly acquire, located at your newly
constructed or acquired buildings at
the location described in the
Declarations.
This Extension does not apply to
personal property that you temporarily
acquire in the course of installing or
performing work on such property or
your wholesale activities.
The most we will pay for loss or damage
under this Extension is $100,000 at
each building.
(3) Period Of Coverage
With respect to insurance provided
under this Coverage Extension for
Newly Acquired Or Constructed
Property, coverage will end when any of
the following first occurs:
(a) This policy expires;
(b) 30 days expire after you acquire the
property or begin construction of that
part of the building that would qualify
as Covered Property; or
(c) You report values to us.
We will charge you additional premium
for values reported from the date you
acquire the property or begin
construction of that part of the building
that would qualify as Covered Property.
b. Personal Property Off-premises
You may extend the insurance provided by
this policy to apply to your Covered
Property, other than "money" and
"securities", "valuable papers and records"
or accounts receivable, while it is in the
course of transit or at a premises you do
not own, lease or operate. The most we will
pay for loss or damage under this
Extension is $10,000.
c. Outdoor Property
You may extend the insurance provided by
this policy to apply to your outdoor fences,
radio and television antennas (including
satellite dishes), sign s (other than signs
attached to buildings ), trees, shrubs and
plants (other than trees, shrubs or plants
which are part of a vegetated roof),
including debris removal expense. Loss or
damage must be caused by or result from
any of the following causes of loss:
(1) Fire;
(2) Lightning;
(3) Explosion;
(4) Riot or Civil Commotion; or
(5) Aircraft.
The most we will pay for loss or damage
under this Extension is $2,500, unless a
higher Limit Of Insurance for Outdoor
Property is shown in the Declarations, but
not more than $1,000 for any one tree,
shrub or plant.
Subject to all aforementioned terms and
limitations of coverage, this Coverage
Extension includes the expense of
removing from the described premises the
debris of trees, shrubs and plants which are
the property of others, except in the
situation in which you are a tenant and such
property is owned by the landlord of the
described premises.
d. Personal Effects
You may extend the insurance that applies
to Business Personal Property to apply to
personal effects owned by you, your
officers, your partners or "members", your
"managers" or your employees, including
temporary or leased employees. This
extension does not apply to:
(1) Tools or equipment used in your
business; or
(2) Loss or damage by theft.
The most we will pay for loss or damage
under this Extension is $2,500 at each
described premises.
e. Valuable Papers And Records
(1) You may extend the insurance that
applies to Business Personal Property
to apply to direct physical loss or
damage to "valuable papers and
records" that you own, or that are in
your care, custody or control, caused by
or resulting from a Covered Cause of
Loss. This Coverage Extension includes
the cost to research, replace or restore
the lost information on "valuable papers
and records" for which duplicates do not
exist.
(2) This Coverage Extension does not apply
to:
(a) Property held as samples or for
delivery after sale; and
(b) Property in storage away from the
premises shown in the Declarations.
(3) The most we will pay under this
Coverage Extension for loss or damage
to "valuable papers and records" in any
one occurrence at the described
premises is $10,000, unless a higher
Limit Of Insurance for "valuable papers
and records" is shown in the
Declarations.
For "valuable papers and records" not at
the described premises, the most we will
pay is $5,000.
(4) Loss or damage to "valuable papers and
records" will be valued at the cost of
restoration or replacement of the lost or
damaged information. To the extent that
the contents of the "valuable papers and
records" are not restored, the "valuable
papers and records" will be valued at
the cost of replacement with blank
materials of substantially identical type.
(5) Paragraph B. Exclusions in Section I –
Property does not apply to this
Coverage Extension except for:
(a) Paragraph B.1.c., Governmental
Action;
(b) Paragraph B.1.d., Nuclear Hazard;
(c) Paragraph B.1.f., War And Military
Action;
BP 00 03 07 13 © Insurance Services Office, Inc., 2012 Page 17 of 53
(d) Paragraph B.2.f., Dishonesty;
(e) Paragraph B.2.g., False Pretense;
(f) Paragraph B.2.m.(2), Errors Or
Omissions; and
(g) Paragraph B.3.
f. Accounts Receivable
(1) You may extend the insurance that
applies to Business Personal Property
to apply to accounts receivable. We will
pay:
(a) All amounts due from your
customers that you are unable to
collect;
(b) Interest charges on any loan
required to offset amounts you are
unable to collect pending our
payment of these amounts;
(c) Collection expenses in excess of
your normal collection expenses that
are made necessary by loss or
damage; and
(d) Other reasonable expenses that you
incur to reestablish your records of
accounts receivable;
that result from direct physical loss or
damage by any Covered Cause of Loss
to your records of accounts receivable.
(2) The most we will pay under this
Coverage Extension for loss or damage
in any one occurrence at the described
premises is $10,000, unless a higher
Limit of Insurance for accounts
receivable is shown in the Declarations.
For accounts receivable not at the
described premises, the most we will
pay is $5,000.
(3) Paragraph B. Exclusions in Section I –
Property does not apply to this
Coverage Extension except for:
(a) Paragraph B.1.c., Governmental
Action;
(b) Paragraph B.1.d., Nuclear Hazard;
(c) Paragraph B.1.f., War And Military
Action;
(d) Paragraph B.2.f., Dishonesty;
(e) Paragraph B.2.g., False Pretense;
(f) Paragraph B.3.; and
(g) Paragraph B.6., Accounts
Receivable Exclusion.
g. Business Personal Property Temporarily
In Portable Storage Units
(1) You may extend the insurance that
applies to Business Personal Property
to apply to such property while
temporarily stored in a portable storage
unit (including a detached trailer)
located within 100 feet of the buildings
or structures described in the
Declarations or within 100 feet of the
described premises, whichever distance
is greater.
(2) The limitation under Paragraph A.4.a.(5)
also applies to property in a portable
storage unit.
(3) Coverage under this Extension:
(a) Will end 90 days a fter the Business
Personal Property has been placed
in the storage unit;
(b) Does not apply if the storage unit
itself has been in use at the
described premises for more than 90
consecutive days, even if the
Business Personal Property has
been stored there for 90 or fewer
days as of the time of loss or
damage.
(4) Under this Extension, the most we will
pay for the total of all loss or damage to
Business Personal Property is $10,000
(unless a higher limit is indicated in the
Declarations for such Extension)
regardless of the number of storage
units.
(5) This Extension does not apply to loss or
damage otherwise covered under this
Coverage Form or any endorsement to
this Coverage Form, and does not apply
to loss or damage to the storage unit
itself.
B. Exclusions
1. We will not pay for loss or damage caused
directly or indirectly by any of the following.
Such loss or damage is excluded regardless of
any other cause or ev ent that contributes
concurrently or in any sequence to the loss.
These exclusions apply whether or not the loss
event results in widespread damage or affects
a substantial area.
a. Ordinance Or Law
(1) The enforcement of or compliance with
any ordinance or law:
(a) Regulating the construction, use or
repair of any property; or
(b) Requiring the tearing down of any
property, including the cost of
removing its debris.
(2) This exclusion, Ordinance Or Law,
applies whether the loss results from:
(a) An ordinance or law that is enforced
even if the property has not been
damaged; or
(b) The increased costs incurred to
comply with an ordinance or law in
the course of construction, repair,
renovation, remodeling or demolition
of property or removal of its debris,
following a physical loss to that
property.
b. Earth Movement
(1) Earthquake, including tremors and
aftershocks and any earth sinking, rising
or shifting related to such event;
(2) Landslide, including any earth sinking,
rising or shifting related to such event;
(3) Mine subsidence, meaning subsidence
of a man-made mine, whether or not
mining activity has ceased;
(4) Earth sinking (other than sinkhole
collapse), rising or shifting including soil
conditions which cause settling,
cracking or other disarrangement of
foundations or other parts of realty. Soil
conditions include contraction,
expansion, freezing, thawing, erosion,
improperly compacted soil and the
action of water under the ground
surface.
But if Earth Movement, as described in
Paragraphs (1) through (4) above, results in
fire or explosion, we will pay for the loss or
damage caused by that fire or explosion.
(5) Volcanic eruption, explosion or effusion.
But if volcanic eruption, explosion or
effusion results in fire, building glass
breakage or volcanic action, we will pay
for the loss or damage caused by that
fire, building glass breakage or volcanic
action.
Volcanic action means direct loss or
damage resulting from the eruption of a
volcano when the loss or damage is
caused by:
(a) Airborne volcanic blast or airborne
shock waves;
(b) Ash, dust or particulate matter; or
(c) Lava flow.
With respect to coverage for volcanic
action as set forth in 5(a), (5)(b) and
5(c), all volcanic eruptions that occur
within any 168-hour period will constitute
a single occurrence.
Volcanic action does not include the
cost to remove ash, dust or particulate
matter that does not cause direct
physical loss of or damage to Covered
Property.
This exclusion applies regardless of
whether any of the above, in Paragraphs
(1) through (5), is caused by an act of
nature or is otherwise caused.
c. Governmental Action
Seizure or destruction of property by order
of governmental authority.
But we will pay for lo ss or damage caused
by or resulting from acts of destruction
ordered by governmental authority and
taken at the time of a fire to prevent its
spread, if the fire would be covered under
this policy.
d. Nuclear Hazard
Nuclear reaction or radi ation, or radioactive
contamination, however caused.
But if nuclear reaction or radiation, or
radioactive contamination, results in fire, we
will pay for the loss or damage caused by
that fire.
e. Utility Services
The failure of power, communication, water
or other utility service supplied to the
described premises, however caused, if the
failure:
(1) Originates away from the described
premises; or
(2) Originates at the described premises,
but only if such failure involves
equipment used to supply the utility
service to the described premises from
a source away from the described
premises.
Failure of any utility se rvice includes lack of
sufficient capacity and reduction in supply.
Loss or damage caused by a surge of
power is also excluded, if the surge would
not have occurred but for an event causing
a failure of power.
BP 00 03 07 13 © Insurance Services Office, Inc., 2012 Page 19 of 53
But if the failure or surge of power, or the
failure of communication, water or other
utility service, results in a Covered Cause of
Loss, we will pay for the loss or damage
caused by that Covered Cause of Loss.
Communication services include but are not
limited to service relating to Internet access
or access to any electronic, cellular or
satellite network.
This exclusion does not apply to loss or
damage to "computer(s)" and "electronic
data".
f. War And Military Action
(1) War, including undeclared or civil war;
(2) Warlike action by a military force,
including action in hindering or
defending against an actual or expected
attack, by any government, sovereign or
other authority usin g military personnel
or other agents; or
(3) Insurrection, rebellion, revolution,
usurped power, or action taken by
governmental authority in hindering or
defending against any of these.
g. Water
(1) Flood, surface water, waves (including
tidal wave and tsunami), tides, tidal
water, overflow of any body of water, or
spray from any of these, all whether or
not driven by wind (including storm
surge);
(2) Mudslide or mudflow;
(3) Water that backs up or overflows or is
otherwise discharged from a sewer,
drain, sump, sump pump or related
equipment;
(4) Water under the ground surface
pressing on, or flowing or seeping
through:
(a) Foundations, walls, floors or paved
surfaces;
(b) Basements, whether paved or not; or
(c) Doors, windows or other openings;
or
(5) Waterborne material carried or
otherwise moved by any of the water
referred to in Paragraph (1), (3) or (4),
or material carried or otherwise moved
by mudslide or mudflow.
This exclusion applies regardless of
whether any of the above, in Paragraphs
(1) through (5), is caused by an act of
nature or is otherwise caused. An example
of a situation to which this exclusion applies
is the situation where a dam, levee, seawall
or other boundary or containment system
fails in whole or in part, for any reason, to
contain the water.
But if any of the above, in Paragraphs (1)
through (5), results in fire, explosion or
sprinkler leakage, we will pay for the loss or
damage caused by that fire, explosion or
sprinkler leakage.
h. Certain Computer-related Losses
(1) The failure, malfunction or inadequacy
of:
(a) Any of the following, whether
belonging to any insured or to
others:
(i) "Computer" hardware, including
microprocessors or other
electronic data processing
equipment as may be described
elsewhere in this policy;
(ii) "Computer" application software
or other "electronic data" as may
be described elsewhere in this
policy;
(iii) "Computer" operating systems
and related software;
(iv) "Computer" networks;
(v) Microprocessors ("computer"
chips) not part of any "computer"
system; or
(vi) Any other computerized or
electronic equipment or
components; or
(b) Any other products, and any
services, data or functions that
directly or indirectly use or rely upon,
in any manner, any of the items
listed in Paragraph (a) above;
due to the inability to correctly
recognize, distinguish, interpret or
accept one or more dates or times. An
example is the inability of computer
software to recognize the year 2000.
(2) Any advice, consultation, design,
evaluation, inspection, installation,
maintenance, repair, replacement or
supervision provided or done by you or
for you to determine, rectify or test for,
any potential or actual problems
described in Paragraph (1) above.
However, if excluded loss or damage, as
described in Paragraph (1) above, results in
a "specified cause of loss" under Section I –
Property, we will pay only for the loss or
damage caused by such "specified cause
of loss".
We will not pay for repair, replacement or
modification of any items in Paragraph
(1)(a) or (1)(b) to correct any deficiencies or
change any features.
i. "Fungi", Wet Rot Or Dry Rot
Presence, growth, pro liferation, spread or
any activity of "fungi", wet rot or dry rot.
But if "fungi", wet rot or dry rot results in a
"specified cause of loss", we will pay for the
loss or damage caused by that "specified
cause of loss".
This exclusion does not apply:
(1) When "fungi", wet rot or dry rot results
from fire or lightning; or
(2) To the extent that coverage is provided
in the Limited Coverage For "Fungi",
Wet Rot Or Dry Rot Additional
Coverage, with respect to loss or
damage by a cause of loss other than
fire or lightning.
j. Virus Or Bacteria
(1) Any virus, bacterium or other
microorganism that induces or is
capable of inducing physical distress,
illness or disease.
(2) However, the exclusion in Paragraph (1)
does not apply to loss or damage
caused by or resulting from "fungi", wet
rot or dry rot. Such loss or damage is
addressed in Exclusion i.
(3) With respect to any loss or damage
subject to the exclusion in Paragraph
(1), such exclusion supersedes any
exclusion relating to "pollutants".
2. We will not pay for loss or damage caused by
or resulting from any of the following:
a. Electrical Apparatus
Artificially generated electrical, magnetic or
electromagnetic energy that damages,
disturbs, disrupts or otherwise interferes
with any:
(1) Electrical or electronic wire, device,
appliance, system or network; or
(2) Device, appliance, system or network
utilizing cellular or satellite technology.
For the purpose of this exclusion, electrical,
magnetic or electromagnetic energy
includes but is not limited to:
(1) Electrical current, including arcing;
(2) Electrical charge produced or conducted
by a magnetic or electromagnetic field;
(3) Pulse of electromagnetic energy; or
(4) Electromagnetic waves or microwaves.
But if fire results, we will pay for the loss or
damage caused by fire.
We will pay for loss or damage to
"computer(s)" due to artificially generated
electrical, magnetic or electromagnetic
energy if such loss or damage is caused by
or results from:
(1) An occurrence that took place within
100 feet of the described premises; or
(2) Interruption of electric power supply,
power surge, blackout or brownout if the
cause of such occurrence took place
within 100 feet of the described
premises.
b. Consequential Losses
Delay, loss of use or loss of market.
c. Smoke, Vapor, Gas
Smoke, vapor or gas from agricultural
smudging or industrial operations.
BP 00 03 07 13 © Insurance Services Office, Inc., 2012 Page 21 of 53
d. Steam Apparatus
Explosion of steam boilers, steam pipes,
steam engines or steam turbines owned or
leased by you, or operated under your
control. But if explosion of steam boilers,
steam pipes, steam engines or steam
turbines results in fire or combustion
explosion, we will pay for the loss or
damage caused by that fire or combustion
explosion. We will also pay for loss or
damage caused by or resulting from the
explosion of gases or fuel within the furnace
of any fired vessel or within the flues or
passages through which the gases of
combustion pass.
e. Frozen Plumbing
Water, other liquids, powder or molten
material that leaks or flows from plumbing,
heating, air conditioning or other equipment
(except fire protective systems) caused by
or resulting from freezing, unless:
(1) You do your best to maintain heat in the
building or structure; or
(2) You drain the equipment and shut off
the supply if the heat is not maintained.
f. Dishonesty
Dishonest or criminal acts (including theft)
by you, anyone else with an interest in the
property, or any of y our or their partners,
"members", officers, "managers",
employees (including temporary or leased
employees), directors, trustees or
authorized representatives, whether acting
alone or in collusion with each other or with
any other party; or theft by any person to
whom you entrust the property for any
purpose, whether acting alone or in
collusion with any other party.
This exclusion:
(1) Applies whether or not an act occurs
during your normal hours of operation;
(2) Does not apply to acts of destruction by
your employees (including temporary or
leased employees) or authorized
representatives; but theft by your
employees (including temporary or
leased employees) or authorized
representatives is not covered.
With respect to accounts receivable and
"valuable papers and records", this
exclusion does not apply to carriers for hire.
This exclusion does not apply to coverage
that is provided under the Employee
Dishonesty Optional Coverage.
g. False Pretense
Voluntary parting with any property by you
or anyone else to whom you have entrusted
the property if induced to do so by any
fraudulent scheme, trick, device or false
pretense.
h. Exposed Property
Rain, snow, ice or sleet to personal
property in the open.
i. Collapse
(1) Collapse, including any of the following
conditions of property or any part of the
property:
(a) An abrupt falling down or caving in;
(b) Loss of structural integrity, including
separation of parts of the property or
property in danger of falling down or
caving in; or
(c) Any cracking, bulging, sagging,
bending, leaning, settling, shrinkage
or expansion as such condition
relates to Paragraph i.(1)(a) or
i.(1)(b).
But if collapse result s in a Covered Cause
of Loss at the described premises, we will
pay for the loss or damage caused by that
Covered Cause of Loss.
(2) This Exclusion i. does not apply:
(a) To the extent that coverage is
provided under the Additional
Coverage – Collapse; or
(b) To collapse caused by one or more
of the following:
(i) The "specified causes of loss";
(ii) Breakage of building glass;
(iii) Weight of rain that collects on a
roof; or
(iv) Weight of people or personal
property.
j. Pollution
We will not pay for loss or damage caused
by or resulting from the discharge,
dispersal, seepage, migration, release or
escape of "pollutants" unless the discharge,
dispersal, seepage, migration, release or
escape is itself ca used by any of the
"specified causes of loss". But if the
discharge, dispersal, seepage, migration,
release or escape of "pollutants" results in a
"specified cause of loss", we will pay for the
loss or damage caused by that "specified
cause of loss".
k. Neglect
Neglect of an insured to use all reasonable
means to save and preserve property from
further damage at and after the time of loss.
l. Other Types Of Loss
(1) Wear and tear;
(2) Rust or other corrosion, decay,
deterioration, hidden or latent defect or
any quality in property that causes it to
damage or destroy itself;
(3) Smog;
(4) Settling, cracking, shrinking or
expansion;
(5) Nesting or infestati on, or discharge or
release of waste products or secretions,
by insects, birds, rodents or other
animals;
(6) Mechanical breakdown, including
rupture or bursting caused by centrifugal
force.
This exclusion does not apply with
respect to the breakdown of
"computer(s)";
(7) The following causes of loss to personal
property:
(a) Dampness or dryness of
atmosphere;
(b) Changes in or extremes of
temperature; or
(c) Marring or scratching.
But if an excluded cause of loss that is
listed in Paragraphs (1) through (7) above
results in a "specified cause of loss" or
building glass breakage, we will pay for the
loss or damage caused by that "specified
cause of loss" or building glass breakage.
m. Errors Or Omissions
Errors or omissions in:
(1) Programming, processing or storing
data, as described under "electronic
data" or in any "computer" operations; or
(2) Processing or copying "valuable papers
and records".
However, we will pay for direct physical loss
or damage caused by resulting fire or
explosion if these causes of loss would be
covered by this Coverage Form.
n. Installation, Testing, Repair
Errors or deficiency in design, installation,
testing, maintenance, modification or repair
of your "computer" system including
"electronic data".
However, we will pay for direct physical loss
or damage caused by resulting fire or
explosion if these causes of loss would be
covered by this Coverage Form.
o. Electrical Disturbance
Electrical or magnetic injury, disturbance or
erasure of "electronic data", except as
provided for under the Additional
Coverages of Section I – Property.
However, we will pay for direct loss or
damage caused by lightning.
p. Continuous Or Repeated Seepage Or
Leakage Of Water
Continuous or repeated seepage or
leakage of water, or the presence or
condensation of humidity, moisture or
vapor, that occurs over a period of 14 days
or more.
3. We will not pay for loss or damage caused by
or resulting from any of the following
Paragraphs a. through c. But if an excluded
cause of loss that is listed in Paragraphs a.
through c. results in a Covered Cause of Loss,
we will pay for the loss or damage caused by
that Covered Cause of Loss.
a. Weather Conditions
Weather conditions. But this exclusion only
applies if weather condi tions contribute in
any way with a cause or event excluded in
Paragraph B.1. above to produce the loss
or damage.
b. Acts Or Decisions
Acts or decisions, including the failure to act
or decide, of any person, group,
organization or governmental body.
c. Negligent Work
Faulty, inadequate or defective:
(1) Planning, zoning, development,
surveying, siting;
(2) Design, specifications, workmanship,
repair, construction, renovation,
remodeling, grading, compaction;
(3) Materials used in repair, construction,
renovation or remodeling; or
(4) Maintenance;
of part or all of any property on or off the
described premises.
BP 00 03 07 13 © Insurance Services Office, Inc., 2012 Page 23 of 53
4. Additional Exclusion
The following applies only to the property
specified in this Additional Exclusion:
Loss Or Damage To Products
We will not pay for loss or damage to any
merchandise, goods or other product caused
by or resulting from er ror or omission by any
person or entity (including those having
possession under an arrangement where work
or a portion of the work is outsourced) in any
stage of the development, production or use of
the product, including planning, testing,
processing, packaging, installation,
maintenance or repair. This exclusion applies
to any effect that compromises the form,
substance or quality of the product. But if such
error or omission results in a Covered Cause of
Loss, we will pay for the loss or damage
caused by that Covered Cause of Loss.
5. Business Income And Extra Expense
Exclusions
a. We will not pay for:
(1) Any Extra Expense, or increase of
Business Income loss, caused by or
resulting from:
(a) Delay in rebuilding, repairing or
replacing the property or resuming
"operations", due to interference at
the location of the rebuilding, repair
or replacement by strikers or other
persons; or
(b) Suspension, lapse or cancellation of
any license, lease or contract. But if
the suspension, lapse or cancellation
is directly caused by the suspension
of "operations", we will cover such
loss that affects your Business
Income during the "period of
restoration" and any extension of the
"period of restoration" in accordance
with the terms of the Extended
Business Income Additional
Coverage.
(2) Any other consequential loss.
b. With respect to this exclusion, suspension
means:
(1) The partial slowdown or complete
cessation of your business activities;
and
(2) That a part or all of the described
premises is rendered untenantable, if
coverage for Business Income applies.
6. Accounts Receivable Exclusion
The following additional exclusion applies to
the Accounts Receivable Coverage Extension:
We will not pay for:
a. Loss or damage caused by or resulting
from alteration, falsification, concealment or
destruction of records of accounts
receivable done to conceal the wrongful
giving, taking or withholding of "money",
"securities" or other property.
This exclusion applies only to the extent of
the wrongful giving, taking or withholding.
b. Loss or damage caused by or resulting
from bookkeeping, accounting or billing
errors or omissions.
c. Any loss or damage that requires any audit
of records or any inventory computation to
prove its factual existence.
C. Limits Of Insurance
1. The most we will pay for loss or damage in any
one occurrence is the applicable Limits Of
Insurance of Section I – Property shown in the
Declarations.
2. The most we will pay for loss of or damage to
outdoor signs attached to buildings is $1,000
per sign in any one occurrence.
3. The amounts of insurance applicable to the
Coverage Extensions and the following
Additional Coverages apply in accordance with
the terms of such coverages and are in
addition to the Limits of Insurance of Section I
– Property:
a. Fire Department Service Charge;
b. Pollutant Clean-up And Removal;
c. Increased Cost Of Construction;
d. Business Income From Dependent
Properties;
e. Electronic Data; and
f. Interruption Of Computer Operations.
4. Building Limit – Automatic Increase
a. In accordance with Paragraph C.4.b., the
Limit of Insurance for Buildings will
automatically increase by 8%, unless a
different percentage of annual increase is
shown in the Declarations.
b. The amount of increase is calculated as
follows:
(1) Multiply the Building limit that applied on
the most recent of the policy inception
date, the policy anniversary date or any
other policy change amending the
Building limit by:
(a) The percentage of annual increase
shown in the Declarations,
expressed as a decimal (example:
7% is .07); or
(b) .08, if no percentage of annual
increase is shown in the
Declarations; and
(2) Multiply the number calculated in
accordance with b.(1) by the number of
days since the beginning of the current
policy year, or the effective date of the
most recent policy change amending the
Building limit, divided by 365.
Example
If:
The applicable Building limit is $100,000.
The annual percentage increase is 8%. The
number of days since the beginning of the
policy year (or last policy change) is 146.
The amount of increase is
$100,000 x .08 x 146 ÷ 365 = $3,200.
5. Business Personal Property Limit –
Seasonal Increase
a. Subject to Paragraph 5.b., the Limit of
Insurance for Business Personal Property is
automatically increased by:
(1) The Business Personal Property –
Seasonal Increase percentage shown in
the Declarations; or
(2) 25% if no Business Personal Property –
Seasonal Increase percentage is shown
in the Declarations;
to provide for seasonal variances.
b. The increase described in Paragraph 5.a.
will apply only if the Limit Of Insurance
shown for Business Personal Property in
the Declarations is at least 100% of your
average monthly values during the lesser
of:
(1) The 12 months immediately preceding
the date the loss or damage occurs; or
(2) The period of time you have been in
business as of the date the loss or
damage occurs.
D. Deductibles
1. We will not pay for loss or damage in any one
occurrence until the amount of loss or damage
exceeds the Deductible shown in the
Declarations. We will then pay the amount of
loss or damage in excess of the Deductible up
to the applicable Limit of Insurance of Section I
– Property.
2. Regardless of the amount of the Deductible,
the most we will deduct from any loss or
damage under all of the following Optional
Coverages in any one occurrence is the
Optional Coverage Deductible shown in the
Declarations:
a. Money and Securities;
b. Employee Dishonesty;
c. Outdoor Signs; and
d. Forgery or Alteration.
But this Optional Coverage Deductible will not
increase the Deductible shown in the
Declarations. This Deduct ible will be used to
satisfy the requirements of the Deductible in
the Declarations.
3. No deductible applies to the following
Additional Coverages:
a. Fire Department Service Charge;
b. Business Income;
c. Extra Expense;
d. Civil Authority; and
e. Fire Extinguisher Systems Recharge
Expense.
E. Property Loss Conditions
1. Abandonment
There can be no abandonment of any property
to us.
2. Appraisal
If we and you disagree on the amount of loss,
either may make written demand for an
appraisal of the loss. In this event, each party
will select a competent and impartial appraiser.
The two appraisers will select an umpire. If
they cannot agree, either may request that
selection be made by a judge of a court having
jurisdiction. The appraisers will state separately
the amount of loss. If they fail to agree, they
will submit their differences to the umpire. A
decision agreed to by any two will be binding.
Each party will:
a. Pay its chosen appraiser; and
b. Bear the other expenses of the appraisal
and umpire equally.
BP 00 03 07 13 © Insurance Services Office, Inc., 2012 Page 25 of 53
If there is an appraisal, we will still retain our
right to deny the claim.
3. Duties In The Event Of Loss Or Damage
a. You must see that the following are done in
the event of loss or damage to Covered
Property:
(1) Notify the police if a law may have been
broken.
(2) Give us prompt notice of the loss or
damage. Include a description of the
property involved.
(3) As soon as possible, give us a
description of how, when and where the
loss or damage occurred.
(4) Take all reasonable steps to protect the
Covered Property from further damage,
and keep a record of your expenses
necessary to protect the Covered
Property, for consideration in the
settlement of the claim. This will not
increase the Limits of Insurance of
Section I – Property. However, we will
not pay for any subsequent loss or
damage resulting from a cause of loss
that is not a Covered Cause of Loss.
Also, if feasible, set the damaged
property aside and in the best possible
order for examination.
(5) At our request, give us complete
inventories of the damaged and
undamaged property. Include quantities,
costs, values and amount of loss
claimed.
(6) As often as may be reasonably required,
permit us to inspect the property proving
the loss or damage and examine your
books and records.
Also permit us to take samples of
damaged and undamaged property for
inspection, testing and analysis, and
permit us to make copies from your
books and records.
(7) Send us a signed, sworn proof of loss
containing the information we request to
investigate the claim. You must do this
within 60 days after our request. We will
supply you with the necessary forms.
(8) Cooperate with us in the investigation or
settlement of the claim.
(9) Resume all or part of your "operations"
as quickly as possible.
b. We may examine any insured under oath,
while not in the presence of any other
insured and at such times as may be
reasonably required, about any matter
relating to this insurance or the claim,
including an insured's books and records. In
the event of an examination, an insured's
answers must be signed.
4. Legal Action Against Us
No one may bring a legal action against us
under this insurance unless:
a. There has been full compliance with all of
the terms of this insurance; and
b. The action is brought within two years after
the date on which the direct physical loss or
damage occurred.
5. Loss Payment
In the event of loss or damage covered by this
policy:
a. At our option, we will either:
(1) Pay the value of lost or damaged
property;
(2) Pay the cost of repairing or replacing the
lost or damaged property;
(3) Take all or any part of the property at an
agreed or appraised value; or
(4) Repair, rebuild or replace the property
with other property of like kind and
quality, subject to Paragraph d.(1)(e)
below.
b. We will give notice of our intentions within
30 days after we receive the sworn proof of
loss.
c. We will not pay you more than your
financial interest in the Covered Property.
d. Except as provided in Paragraphs (2)
through (7) below, we will determine the
value of Covered Property as follows:
(1) At replacement cost without deduction
for depreciation, subject to the following:
(a) If, at the time of loss, the Limit of
Insurance on the lost or damaged
property is 80% or more of the full
replacement cost of the property
immediately before the loss, we will
pay the cost to repair or replace,
after application of the deductible
and without deduction for
depreciation, but not more than the
least of the following amounts:
(i) The Limit of Insurance under
Section I – Property that applies
to the lost or damaged property;
(ii) The cost to replace, on the same
premises, the lost or damaged
property with other property:
i. Of comparable material and
quality; and
ii. Used for the same purpose;
or
(iii) The amount that you actually
spend that is necessary to repair
or replace the lost or damaged
property.
If a building is rebuilt at a new
premises, the cost is limited to the
cost which would have been incurred
had the building been built at the
original premises.
(b) If, at the time of loss, the Limit of
Insurance applicable to the lost or
damaged property is less than 80%
of the full replacement cost of the
property immediately before the loss,
we will pay the greater of the
following amounts, but not more than
the Limit of Insurance that applies to
the property:
(i) The actual cash value of the lost
or damaged property; or
(ii) A proportion of the cost to repair
or replace the lost or damaged
property, after application of the
deductible and without deduction
for depreciation. This proportion
will equal the ratio of the
applicable Limit of Insurance to
80% of the full replacement cost
of the property.
Example
The full replacement cost of
property which suffers a total loss
is $100,000. The property is
insured for $70,000. 80% of the
full replacement cost of the
property immediately before the
loss is $80,000 ($100,000 x .80 =
$80,000). A partial loss of
$25,000 is sustained. The
amount of recovery is determined
as follows:
Amount of recovery
$70,000 ÷ $80,000 = .875
.875 x $25,000 = $21,875
(c) You may make a claim for loss or
damage covered by this insurance
on an actual cash value basis
instead of on a replacement cost
basis. In the event you elect to have
loss or damage settled on an actual
cash value basis, you may still make
a claim on a replacement cost basis
if you notify us of your intent to do so
within 180 days after the loss or
damage.
(d) We will not pay on a replacement
cost basis for any loss or damage:
(i) Until the lost or damaged
property is actually repaired or
replaced; and
(ii) Unless the repair or replacement
is made as soon as reasonably
possible after the loss or
damage.
However, if the cost to repair or
replace the damaged building
property is $2,500 or less, we will
settle the loss according to the
provisions of Paragraphs d.(1)(a)
and d.(1)(b) above whether or not
the actual repair or replacement is
complete.
(e) The cost to repair, rebuild or replace
does not include the increased cost
attributable to enforcement of or
compliance with any ordinance or
law regulating the construction, use
or repair of any property.
(2) If the Actual Cash Value – Buildings
option applies, as shown in the
Declarations, Paragraph (1) above does
not apply to Buildings. Instead, we will
determine the value of Buildings at
actual cash value.
(3) The following property at actual cash
value:
(a) Used or secondhand merchandise
held in storage or for sale;
(b) Property of others. However, if an
item(s) of personal property of others
is subject to a written contract which
governs your liability for loss or
damage to that item(s), then
valuation of that item(s) will be based
on the amount for which you are
liable under such contract, but not to
exceed the lesser of the replacement
cost of the property or the applicable
Limit of Insurance;
BP 00 03 07 13 © Insurance Services Office, Inc., 2012 Page 27 of 53
(c) Household contents, except personal
property in apartments or rooms
furnished by you as landlord;
(d) Manuscripts; and
(e) Works of art, antiques or rare
articles, including etchings, pictures,
statuary, marble, bronzes, porcelain
and bric-a-brac.
(4) Glass at the cost of replacement with
safety glazing material if required by
law.
(5) Tenants' improvements and betterments
at:
(a) Replacement cost if you make
repairs promptly.
(b) A proportion of your original cost if
you do not make repairs promptly.
We will determine the proportionate
value as follows:
(i) Multiply the original cost by the
number of days from the loss or
damage to the expiration of the
lease; and
(ii) Divide the amount determined in
(i) above by the number of days
from the installation of
improvements to the expiration of
the lease.
If your lease contains a renewal
option, the expiration of the renewal
option period will replace the
expiration of the lease in this
procedure.
(c) Nothing if others pay for repairs or
replacement.
(6) Applicable only to the Optional
Coverages:
(a) "Money" at its face value; and
(b) "Securities" at their value at the close
of business on the day the loss is
discovered.
(7) Applicable only to accounts receivable:
(a) If you cannot accurately establish the
amount of accounts receivable
outstanding as of the time of loss or
damage:
(i) We will determine the total of the
average monthly amounts of
accounts receivable for the 12
months immediately preceding
the month in which the loss or
damage occurs; and
(ii) We will adjust that total for any
normal fluctuations in the amount
of accounts receivable for the
month in which the loss or
damage occurred or for any
demonstrated variance from the
average for that month.
(b) The following will be deducted from
the total amount of accounts
receivable, however that amount is
established:
(i) The amount of the accounts for
which there is no loss or damage;
(ii) The amount of the accounts that
you are able to reestablish or
collect;
(iii) An amount to allow for probable
bad debts that you are normally
unable to collect; and
(iv) All unearned interest and service
charges.
e. Our payment for loss of or damage to
personal property of others will only be for
the account of the owners of the property.
We may adjust losses with the owners of
lost or damaged property if other than you.
If we pay the owners, such payments will
satisfy your claims against us for the
owners' property. We will not pay the
owners more than their financial interest in
the Covered Property.
f. We may elect to defend you against suits
arising from claims of owners of property.
We will do this at our expense.
g. We will pay for covered loss or damage
within 30 days after we receive the sworn
proof of loss, provided you have complied
with all of the terms of this policy, and:
(1) We have reached agreement with you
on the amount of loss; or
(2) An appraisal award has been made.
h. A party wall is a wall that separates and is
common to adjoining buildings that are
owned by different parties. In settling
covered losses involving a party wall, we
will pay a proportion of the loss to the party
wall based on your interest in the wall in
proportion to the interest of the owner of the
adjoining building. However, if you elect to
repair or replace your building and the
owner of the adjoining building elects not to
repair or replace that building, we will pay
you the full value of the loss to the party
wall, subject to all applicable policy
provisions including Limits of Insurance and
all other provisions of this Loss Payment
Condition. Our payment under the
provisions of this paragraph does not alter
any right of subrogation we may have
against any entity, including the owner or
insurer of the adjoining building, and does
not alter the terms of the Transfer Of Rights
Of Recovery Against Others To Us
Condition in this policy.
6. Recovered Property
If either you or we recover any property after
loss settlement, that party must give the other
prompt notice. At your option, you may retain
the property. But then you must return to us the
amount we paid to you for the property. We will
pay recovery expenses and the expenses to
repair the recovered property, subject to the
Limits of Insurance of Section I – Property.
7. Resumption Of Operations
We will reduce the amount of your:
a. Business Income loss, other than Extra
Expense, to the extent you can resume
your "operations", in whole or in part, by
using damaged or undamaged property
(including merchandise or stock) at the
described premises or elsewhere.
b. Extra Expense loss to the extent you can
return "operations" to normal and
discontinue such Extra Expense.
8. Vacancy
a. Description Of Terms
(1) As used in this Vacancy Condition, the
term building and the term vacant have
the meanings set forth in Paragraphs (a)
and (b) below:
(a) When this policy is issued to a
tenant, and with respect to that
tenant's interest in Covered Property,
building means the unit or suite
rented or leased to the tenant. Such
building is vacant when it does not
contain enough business personal
property to conduct customary
operations.
(b) When this policy is issued to the
owner or general lessee of a
building, building means the entire
building. Such building is vacant
unless at least 31% of its total
square footage is:
(i) Rented to a lessee or sublessee
and used by the lessee or
sublessee to conduct its
customary operations; and/or
(ii) Used by the building owner to
conduct customary operations.
(2) Buildings under construction or
renovation are not considered vacant.
b. Vacancy Provisions
If the building where loss or damage occurs
has been vacant for more than 60
consecutive days before that loss or
damage occurs:
(1) We will not pay for any loss or damage
caused by any of the following even if
they are Covered Causes of Loss:
(a) Vandalism;
(b) Sprinkler leakage, unless you have
protected the system against
freezing;
BP 00 03 07 13 © Insurance Services Office, Inc., 2012 Page 29 of 53
(c) Building glass breakage;
(d) Water damage;
(e) Theft; or
(f) Attempted theft.
(2) With respect to Covered Causes of Loss
other than those listed in Paragraphs
(1)(a) through (1)(f) above, we will
reduce the amount we would otherwise
pay for the loss or damage by 15%.
F. Property General Conditions
1. Control Of Property
Any act or neglect of any person other than
you beyond your direction or control will not
affect this insurance.
The breach of any condition of this Coverage
Form at any one or more locations will not
affect coverage at any location where, at the
time of loss or damage, the breach of condition
does not exist.
2. Mortgageholders
a. The term "mortgageholder" includes
trustee.
b. We will pay for covered loss of or damage
to buildings or structures to each
mortgageholder shown in the Declarations
in their order of precedence, as interests
may appear.
c. The mortgageholder has the right to receive
loss payment even if the mortgageholder
has started foreclosure or similar action on
the building or structure.
d. If we deny your claim because of your acts
or because you have failed to comply with
the terms of this policy, the mortgageholder
will still have the right to receive loss
payment if the mortgageholder:
(1) Pays any premium due under this policy
at our request if you have failed to do
so;
(2) Submits a signed, sworn proof of loss
within 60 days after receiving notice
from us of your failure to do so; and
(3) Has notified us of any change in
ownership, occupancy or substantial
change in risk known to the
mortgageholder.
All of the terms of this policy will then apply
directly to the mortgageholder.
e. If we pay the mortgageholder for any loss
or damage and deny payment to you
because of your acts or because you have
failed to comply with the terms of this
policy:
(1) The mortgageholder's rights under the
mortgage will be transferred to us to the
extent of the amount we pay; and
(2) The mortgageholder's right to recover
the full amount of the mortgageholder's
claim will not be impaired.
At our option, we may pay to the
mortgageholder the whole principal on the
mortgage plus any accrued interest. In this
event, your mortgage and note will be
transferred to us and you will pay your
remaining mortgage debt to us.
f. If we cancel this policy, we will give written
notice to the mortgageholder at least:
(1) 10 days before the effective date of
cancellation if we cancel for your
nonpayment of premium; or
(2) 30 days before the effective date of
cancellation if we cancel for any other
reason.
g. If we elect not to renew this policy, we will
give written notice to the mortgageholder at
least 10 days before the expiration date of
this policy.
3. No Benefit To Bailee
No person or organization, other than you,
having custody of Covered Property will benefit
from this insurance.
4. Policy Period, Coverage Territory
Under Section I – Property:
a. We cover loss or damage commencing:
(1)
During the policy period shown in the
Declarations; and
(2) Within the coverage territory or, with
respect to property in transit, while it is
between points in the coverage territory.
b. The coverage territory is:
(1) The United States of America (including
its territories and possessions);
(2) Puerto Rico; and
(3) Canada.
G. Optional Coverages
If shown as applicable in the Declarations, the
following Optional Coverages also apply. These
coverages are subject to the terms and conditions
applicable to property coverage in this policy,
except as provided below:
1. Outdoor Signs
a. We will pay for direct physical loss of or
damage to all outdoor signs at the
described premises:
(1) Owned by you; or
(2) Owned by others but in your care,
custody or control.
b. Paragraph A.3., Covered Causes Of Loss
and Paragraph B., Exclusions in Section I –
Property do not apply to this Optional
Coverage, except for:
(1) Paragraph B.1.c., Governmental Action;
(2) Paragraph B.1.d., Nuclear Hazard; and
(3) Paragraph B.1.f., War And Military
Action.
c. We will not pay for loss or damage caused
by or resulting from:
(1) Wear and tear;
(2) Hidden or latent defect;
(3) Rust;
(4) Corrosion; or
(5) Mechanical breakdown.
d. The most we will pay for loss or damage in
any one occurrence is the Limit Of
Insurance for Outdoor Signs shown in the
Declarations.
e. The provisions of this Optional Coverage
supersede all other references to outdoor
signs in this policy.
2. Money And Securities
a. We will pay for loss of "money" and
"securities" used in your business while at a
bank or savings institution, within your living
quarters or the living quarters of your
partners or any employee (including a
temporary or leased employee) having use
and custody of the property, at the
described premises, or in transit between
any of these places, resulting directly from:
(1) Theft, meaning any act of stealing;
(2) Disappearance; or
(3) Destruction.
b. In addition to the Limitations and Exclusions
applicable to Section I – Property, we will
not pay for loss:
(1) Resulting from accounting or
arithmetical errors or omissions;
(2) Due to the giving or surrendering of
property in any exchange or purchase;
or
(3) Of property contained in any "money"-
operated device unless the amount of
"money" deposited in it is recorded by a
continuous recording instrument in the
device.
c. The most we will pay for loss in any one
occurrence is:
(1) The limit shown in the Declarations for
Inside the Premises for "money" and
"securities" while:
(a) In or on the described premises; or
(b) Within a bank or savings institution;
and
(2) The limit shown in the Declarations for
Outside the Premises for "money" and
"securities" while anywhere else.
d. All loss:
(1) Caused by one or more persons; or
(2) Involving a single act or series of related
acts;
is considered one occurrence.
e. You must keep records of all "money" and
"securities" so we can verify the amount of
any loss or damage.
3. Employee Dishonesty
a. We will pay for direct loss of or damage to
Business Personal Property and "money"
and "securities" resulting from dishonest
acts committed by any of your employees
acting alone or in collusion with other
persons (except you or your partner) with
the manifest intent to:
(1) Cause you to sustain loss or damage;
and also
(2) Obtain financial benefit (other than
salaries, commissions, fees, bonuses,
promotions, awards, profit sharing,
pensions or other employee benefits
earned in the normal course of
employment) for:
(a) Any employee; or
(b) Any other person or organization.
BP 00 03 07 13 © Insurance Services Office, Inc., 2012 Page 31 of 53
b. We will not pay for loss or damage:
(1) Resulting from any dishonest or criminal
act that you or any of your partners or
"members" commit whether acting alone
or in collusion with other persons.
(2) Resulting from any dishonest act
committed by any of your employees
(except as provided in Paragraph a.),
"managers" or directors:
(a) Whether acting alone or in collusion
with other persons; or
(b) While performing services for you or
otherwise.
(3) The only proof of which as to its
existence or amount is:
(a) An inventory computation; or
(b) A profit and loss computation.
(4) Caused by an employee if the employee
had also committed theft or any other
dishonest act prior to the effective date
of this policy and you or any of your
partners, "members", "managers",
officers, directors or trustees, not in
collusion with the employee, learned of
that theft or dishonest act prior to the
policy period shown in the Declarations.
c. The most we will pay for loss or damage in
any one occurrence is the Limit Of
Insurance for Employee Dishonesty shown
in the Declarations.
d. All loss or damage:
(1) Caused by one or more persons; or
(2) Involving a single act or series of acts;
is considered one occurrence.
e. If any loss is covered:
(1) Partly by this insurance; and
(2) Partly by any prior cancelled or
terminated insurance that we or any
affiliate had issued to you or any
predecessor in interest;
the most we will pay is the larger of the
amount recoverable under this insurance or
the prior insurance.
We will pay only for loss or damage you
sustain through acts committed or events
occurring during the policy period.
Regardless of the number of years this
policy remains in force or the number of
premiums paid, no Limit of Insurance
cumulates from year to year or period to
period.
f. This Optional Coverage is cancelled as to
any employee immediately upon discovery
by:
(1) You; or
(2) Any of your partners, "members",
"managers", officers or directors not in
collusion with the employee;
of any dishonest act committed by that
employee before or after being hired by
you.
g. We will pay only for covered loss or
damage sustained during the policy period
and discovered no later than one year from
the end of the policy period.
h. If you (or any predecessor in interest)
sustained loss or damage during the policy
period of any prior insurance that you could
have recovered under that insurance
except that the time within which to
discover loss or damage had expired, we
will pay for it under this Optional Coverage,
provided:
(1) This Optional Coverage became
effective at the time of cancellation or
termination of the prior insurance; and
(2) The loss or damage would have been
covered by this Optional Coverage had
it been in effect when the acts or events
causing the loss or damage were
committed or occurred.
i. The insurance under Paragraph h. above is
part of, not in addition to, the Limit of
Insurance applying to this Optional
Coverage and is limited to the lesser of the
amount recoverable under:
(1) This Optional Coverage as of its
effective date; or
(2) The prior insurance had it remained in
effect.
j. With respect to the Employee Dishonesty
Optional Coverage in Paragraph G.3.,
employee means:
(1) Any natural person:
(a) While in your service or for 30 days
after termination of service;
(b) Who you compensate directly by
salary, wages or commissions; and
(c) Who you have the right to direct and
control while perform ing services for
you;
(2) Any natural person who is furnished
temporarily to you:
(a) To substitute for a permanent
employee, as defined in Paragraph
(1) above, who is on leave; or
(b) To meet seasonal or short-term
workload conditions;
(3) Any natural person who is leased to you
under a written agreement between you
and a labor leasing firm, to perform
duties related to the conduct of your
business, but does not mean a
temporary employee as defined in
Paragraph (2) above;
(4) Any natural person who is a former
employee, director, partner, member,
manager, representative or trustee
retained as a consultant while
performing services for you; or
(5) Any natural person who is a guest
student or intern pursuing studies or
duties, excluding, however, any such
person while having care and custody of
property outside any building you
occupy in conducting your business.
But employee does not mean:
(1) Any agent, broker, factor, commission
merchant, consignee, independent
contractor or representative of the same
general character; or
(2) Any "manager", director or trustee
except while performing acts coming
within the usual duties of an employee.
4. Equipment Breakdown Protection Coverage
a. We will pay for direct loss of or damage to
Covered Property caused by or resulting
from a mechanical breakdown or electrical
failure to pressure, mechanical or electrical
machinery and equipment.
Mechanical breakdown or electrical failure
to pressure, mechanical or electrical
machinery and equipment does not mean
any:
(1) Malfunction including but not limited to
adjustment, alignment, calibration,
cleaning or modification;
(2) Leakage at any valve, fitting, shaft seal,
gland packing, joint or connection;
(3) Damage to any vacuum tube, gas tube,
or brush; or
(4) The functioning of any safety or
protective device.
b. Paragraphs A.4.a.(1) and A.4.a.(2),
Limitations, do not apply to this Optional
Coverage.
c. With respect to the coverage provided by
this Optional Coverage, the following
exclusions in Paragraph B. Exclusions do
not apply:
(1) Paragraph B.2.a., Electrical Apparatus;
(2) Paragraph B.2.d., Steam Apparatus;
and
(3) Paragraph B.2.l.(6),
Mechanical
Breakdown.
d. With respect to the coverage provided by
this Optional Coverage, Paragraph
G.1.c.(5) of the Outdoor Signs Optional
Coverage does not apply.
e. If a dollar deductible is shown in the
Declarations for this Optional Coverage, we
will first subtract the applicable deductible
amount from any loss we would otherwise
pay. We will then pay the amount of loss in
excess of the applicable deductible up to
the applicable limit for this coverage.
If no optional deductible is chosen for this
Optional Coverage, the Property Deductible
shown in the Declarations applies.
f. With respect to Additional Coverages 5.f.
Business Income and 5.g. Extra Expense, if
the 72-hour time period in the definition of
"period of restoration" (hereinafter referred
to as time deductible) is amended for this
Optional Coverage as shown in the
Declarations, we will not pay for any
Business Income loss that occurs during
the consecutive number of hours shown as
the time deductible in the Declarations
immediately following a mechanical
breakdown or electrical failure. If a time
deductible is shown in days, each day shall
mean 24 consecutive hours.
With respect to the coverage provided by
this Optional Coverage, any time deductible
shown in the Declarations for Equipment
Breakdown Protection Coverage
supersedes any time deductible otherwise
applicable to the Business Income
coverage provided by this policy.
g. With respect to the coverage provided by
this Optional Coverage, Paragraph H.
Property Definitions is amended as
follows:
1. "Computer" means:
a. Programmable electronic equipment
that is used to store, retrieve and
process data; and
BP 00 03 07 13 © Insurance Services Office, Inc., 2012 Page 33 of 53
b. Associated peripheral equipment
that provides communication,
including input and output functions
such as printing and auxiliary
functions such as data transmission.
"Computer" includes those used to operate
production-type machinery or equipment.
h. Whenever any covered pressure,
mechanical or electrical machinery and
equipment is found to be in, or exposed to,
a dangerous condition, any of our
representatives may suspend coverage
provided by this Optional Coverage for loss
from a mechanical breakdown or electrical
failure to that pressure, mechanical or
electrical machinery and equipment.
However, coverage provided by this
Optional Coverage may be reinstated for
loss from a mechanical breakdown or
electrical failure to that pressure,
mechanical or electrical machinery and
equipment if the reasons for the suspension
are found by any of our representatives to
no longer exist.
We may suspend or reinstate this Optional
coverage by mailing or delivering a written
notification regarding the suspension or
reinstatement to:
(1) Your last known address; or
(2) The address where the pressure,
mechanical or electrical machinery and
equipment is located.
This notification will indicate the effective
date of the suspension or reinstatement.
If the coverage provided by this Optional
Coverage is not reinstated, you will get a
pro rata refund of premium. But the
suspension will be effective even if we have
not yet made or offered a refund.
H. Property Definitions
1. "Computer" means:
a. Programmable electronic equipment that is
used to store, retrieve and process data;
and
b. Associated peripheral equipment that
provides communication, including input
and output functions such as printing and
auxiliary functions such as data
transmission.
"Computer" does not include those used to
operate production-type machinery or
equipment.
2. "Counterfeit money" means an imitation of
"money" that is intended to deceive and to be
taken as genuine.
3. "Electronic data" means information, facts or
computer programs stored as or on, created or
used on, or transmitted to or from computer
software (including systems and applications
software), on hard or floppy disks, CD-ROMs,
tapes, drives, cells, data processing devices or
any other repositories of computer software
which are used with electronically controlled
equipment. The term computer programs,
referred to in the foregoing description of
electronic data, means a set of related
electronic instructions which direct the
operations and functions of a "computer" or
device connected to it, which enable the
"computer" or device to receive, process, store,
retrieve or send data.
4. "Fungi" means any type or form of fungus,
including mold or mildew, and any mycotoxins,
spores, scents or by-products produced or
released by fungi.
5. "Manager" means a person serving in a
directorial capacity for a limited liability
company.
6. "Member" means an owne r of a limited liability
company represented by its membership
interest, who also may serve as a "manager".
7. "Money" means:
a. Currency, coins and bank notes in current
use and having a face value; and
b. Traveler's checks, register checks and
money orders held for sale to the public.
8. "Operations" means your business activities
occurring at the described premises.
9. "Period of restoration":
a. Means the period of time that:
(1) Begins:
(a) 72 hours after the time of direct
physical loss or damage for
Business Income Coverage; or
(b) Immediately after the time of direct
physical loss or damage for Extra
Expense Coverage;
caused by or resulting from any Covered
Cause of Loss at the described
premises; and
(2) Ends on the earlier of:
(a) The date when the property at the
described premises should be
repaired, rebuilt or replaced with
reasonable speed and similar
quality; or
(b) The date when business is resumed
at a new permanent location.
b. Does not include any increased period
required due to the enforcement of or
compliance with any ordinance or law that:
(1) Regulates the construction, use or
repair, or requires the tearing down of
any property; or
(2) Requires any insured or others to test
for, monitor, clean up, remove, contain,
treat, detoxify or neutralize, or in any
way respond to, or assess the effects of
"pollutants".
The expiration date of this policy will not cut
short the "period of restoration".
10. "Pollutants" means any solid, liquid, gaseous or
thermal irritant or contaminant, including
smoke, vapor, soot, fumes, acids, alkalis,
chemicals and waste. Waste includes materials
to be recycled, reconditioned or reclaimed.
11. "Securities" means negotiable and
nonnegotiable instruments or contracts
representing either "money" or other property
and includes:
a. Tokens, tickets, revenue and other stamps
(whether represented by actual stamps or
unused value in a meter) in current use;
and
b. Evidences of debt issued in connection with
credit or charge cards, which cards are not
issued by you;
but does not include "money".
12. "Specified causes of loss" means the following:
Fire; lightning; explosion; windstorm or hail;
smoke; aircraft or vehicles; riot or civil
commotion; vandalism; leakage from fire
extinguishing equipment; sinkhole collapse;
volcanic action; falling objects; weight of snow,
ice or sleet; water damage.
a. Sinkhole collapse means the sudden
sinking or collapse of land into underground
empty spaces created by the action of
water on limestone or dolomite. This cause
of loss does not include:
(1) The cost of filling sinkholes; or
(2) Sinking or collapse of land into man-
made underground cavities.
b. Falling objects does not include loss of or
damage to:
(1) Personal property in the open; or
(2) The interior of a building or structure, or
property inside a building or structure,
unless the roof or an outside wall of the
building or structure is first damaged by
a falling object.
c. Water damage means:
(1) Accidental discharge or leakage of
water or steam as the direct result of the
breaking apart or cracking of any part of
a system or appliance (other than a
sump system including its related
equipment and parts) containing water
or steam; and
(2) Accidental discharge or leakage of
water or waterborne material as the
direct result of the breaking apart or
cracking of a water or sewer pipe that is
located off the described premises and
is part of a municipal potable water
supply system or municipal sanitary
sewer system, if the breakage or
cracking is caused by wear and tear.
But water damage does not include loss or
damage otherwise excluded under the
terms of the Water Exclusion. Therefore, for
example, there is no coverage in the
situation in which discharge or leakage of
water results from the breaking apart or
cracking of a pipe which was caused by or
related to weather-induced flooding, even if
wear and tear contributed to the breakage
or cracking. As another example, and also
in accordance with the terms of the Water
Exclusion, there is no coverage for loss or
damage caused by or related to weather-
induced flooding which follows or is
exacerbated by pipe breakage or cracking
attributable to wear and tear.
To the extent that a ccidental discharge or
leakage of water falls within the criteria set
forth in c.(1) or c.(2) of this definition of
"specified causes of loss", such water is not
subject to the provisions of the Water
Exclusion which preclude coverage for
surface water or water under the ground
surface.
13. "Stock" means merchandise held in storage or
for sale, raw materials and in-process or
finished goods, including supplies used in their
packing or shipping.
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14. "Valuable papers and records" means
inscribed, printed or written:
a. Documents;
b. Manuscripts; and
c. Records;
including abstracts, books, deeds, drawings,
films, maps or mortgages.
But "valuable papers and records" does not
mean "money" or "securities".
SECTION II – LIABILITY
A. Coverages
1. Business Liability
a. We will pay those sums that the insured
becomes legally obligated to pay as
damages because of "bodily injury",
"property damage" or "personal and
advertising injury" to which this insurance
applies. We will have th e 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 "bodily
injury", "property damage" or "personal and
advertising injury" to which this insurance
does not apply. We may, at our discretion,
investigate any "occurrence" or any offense
and settle any claim or "suit" that may
result. But:
(1) The amount we will pay for damages is
limited as described in Paragraph D.
Liability And Medical Expenses Limits
Of Insurance in Section II – Liability; 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 or medical expenses.
No other obligation or liability to pay sums
or perform acts or services is covered
unless explicitly provided for under
Paragraph f. Coverage Extension –
Supplementary Payments.
b. This insurance applies:
(1) To "bodily injury" and "property damage"
only if:
(a) The "bodily injury" or "property
damage" is caused by an
"occurrence" that takes place in the
"coverage territory";
(b) The "bodily injury" or "property
damage" occurs during the policy
period; and
(c) Prior to the policy period, no insured
listed under Paragraph C.1. Who Is
An Insured and no "employee"
authorized by you to give or receive
notice of an "occurrence" or claim,
knew that the "bodily injury" or
"property damage" had occurred, in
whole or in part. If such a listed
insured or authorized "employee"
knew, prior to the policy period, that
the "bodily injury" or "property
damage" occurred, then any
continuation, change or resumption
of such "bodily in jury" or "property
damage" during or after the policy
period will be deemed to have been
known before the policy period.
(2) To "personal and advertising injury"
caused by an offense arising out of your
business, but only if the offense was
committed in the "coverage territory"
during the policy period.
c. "Bodily injury" or "property damage" which
occurs during the policy period and was
not, prior to the policy period, known to
have occurred by any insured listed under
Paragraph C.1. Who Is An Insured or any
"employee" authorized by you to give or
receive notice of an "occurrence" or claim,
includes any continuation, change or
resumption of "bodily injury" or "property
damage" after the end of the policy period.
d. "Bodily injury" or "property damage" will be
deemed to have been known to have
occurred at the earliest time when any
insured listed under Paragraph C.1. Who Is
An Insured or any "employee" authorized by
you to give or receive notice of an
"occurrence" or claim:
(1) Reports all, or any part, of the "bodily
injury" or "property damage" to us or any
other insurer;
(2) Receives a written or verbal demand or
claim for damages because of the
"bodily injury" or "property damage"; or
(3) Becomes aware by any other means
that "bodily injury" or "property damage"
has occurred or has begun to occur.
e. Damages because of "bodily injury" include
damages claimed by any person or
organization for care, loss of services or
death resulting at any time from the "bodily
injury".
f. Coverage Extension – Supplementary
Payments
(1) We will pay, with respect to any claim
we investigate or settle, or any "suit"
against an insured we defend:
(a) All expenses we incur.
(b) Up to $250 for cost of bail bonds
required because of accidents or
traffic law violations arising out of the
use of any vehicle to which Business
Liability Coverage for "bodily injury"
applies. We do not have to furnish
these bonds.
(c) The cost of bonds to release
attachments, but only for bond
amounts within our Limit of
Insurance. We do not have to furnish
these bonds.
(d) All reasonable expenses incurred by
the insured at our request to assist
us in the investigation or defense of
the claim or "suit", including actual
loss of earnings up to $250 a day
because of time off from work.
(e) All court costs taxed against the
insured in the "suit". However, these
payments do not include attorneys'
fees or attorneys' expenses taxed
against the insured.
(f) Prejudgment interest awarded
against the insured on that part of
the judgment we pay. If we make an
offer to pay the Limit of Insurance,
we will not pay any prejudgment
interest based on that period of time
after the offer.
(g) All interest on the full amount of any
judgment that accrues after entry of
the judgment and before we have
paid, offered to pay, or deposited in
court the part of the judgment that is
within our Limit of Insurance.
These payments will not reduce the limit
of liability.
(2) If we defend an insured against a "suit"
and an indemnitee of the insured is also
named as a party to the "suit", we will
defend that indemnitee if all of the
following conditions are met:
(a) The "suit" against the indemnitee
seeks damages for which the
insured has assumed the liability of
the indemnitee in a contract or
agreement that is an "insured
contract";
(b) This insurance a pplies to such
liability assumed by the insured;
(c) The obligation to defend, or the cost
of the defense of, that indemnitee,
has also been assumed by the
insured in the same "insured
contract";
(d) The allegations in the "suit" and the
information we know about the
"occurrence" are such that no conflict
appears to exist between the
interests of the insured and the
interests of the indemnitee;
(e) The indemnitee and the insured ask
us to conduct and control the
defense of that indemnitee against
such "suit" and agree that we can
assign the same counsel to defend
the insured and the indemnitee; and
(f) The indemnitee:
(i) Agrees in writing to:
i. Cooperate with us in the
investigation, settlement or
defense of the "suit";
ii. Immediately send us copies of
any demands, notices,
summonses or legal papers
received in connection with
the "suit";
iii. Notify any other insurer
whose coverage is available
to the indemnitee; and
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iv. Cooperate with us with
respect to coordinating other
applicable insurance available
to the indemnitee; and
(ii) Provides us with written
authorization to:
i. Obtain records and other
information related to the
"suit"; and
ii. Conduct and control the
defense of the indemnitee in
such "suit".
(3) So long as the conditions in Paragraph
(2) are met, attorneys' fees incurred by
us in the defense of that indemnitee,
necessary litigation expenses incurred
by us and necessary litigation expenses
incurred by the indemnitee at our
request will be paid as Supplementary
Payments. Notwithstanding the
provisions of Paragraph B.1.b.(2)
Exclusions in Section II – Liability, such
payments will not be deemed to be
damages for "bodily injury" and
"property damage" and will not reduce
the Limits of Insurance.
Our obligation to defend an insured's
indemnitee and to pay for attorneys'
fees and necessary litigation expenses
as Supplementary Payments ends
when:
(a) We have used up the applicable
Limit of Insurance in the payment of
judgments or settlements; or
(b) The conditions set forth above, or
the terms of the agreement
described in Paragraph (2)(f) above,
are no longer met.
2. Medical Expenses
a. We will pay medical expenses as described
below for "bodily injury" caused by an
accident:
(1) On premises you own or rent;
(2) On ways next to premises you own or
rent; or
(3) Because of your operations;
provided that:
(a) The accident takes place in the
"coverage territory" and during the
policy period;
(b) The expenses are incurred and
reported to us within one year of the
date of the accident; and
(c) The injured person submits to
examination, at our expense, by
physicians of our choice as often as
we reasonably require.
b. We will make these payments regardless of
fault. These payments will not exceed the
Limits of Insurance of Section II – Liability.
We will pay reasonable expenses for:
(1) First aid administered at the time of an
accident;
(2) Necessary medical, surgical, X-ray and
dental services, including prosthetic
devices; and
(3) Necessary ambulance, hospital,
professional nursing and funeral
services.
B. Exclusions
1. Applicable To Business Liability Coverage
This insurance does not apply to:
a. Expected Or Intended Injury
"Bodily injury" or "property damage"
expected or intended from the standpoint of
the insured. This exclusion does not apply
to "bodily injury" resulting from the use of
reasonable force to protect persons or
property.
b. Contractual Liability
"Bodily injury" or "property damage" for
which the insured is obligated to pay
damages by reason of the assumption of
liability in a contract or agreement. This
exclusion does not apply to liability for
damages:
(1) That the insured would have in the
absence of the contract or agreement;
or
(2) Assumed in a contract or agreement
that is an "insured contract", provided
the "bodily injury" or "property damage"
occurs subsequent to the execution of
the contract or agreement. Solely for the
purposes of liability assumed in an
"insured contract", reasonable attorneys'
fees and necessary litigation expenses
incurred by or for a party other than an
insured are deemed to be damages
because of "bodily injury" or "property
damage", provided:
(a) Liability to such party for, or for the
cost of, that party's defense has also
been assumed in the same "insured
contract"; and
(b) Such attorney fees and litigation
expenses are for defense of that
party against a civil or alternative
dispute resolution proceeding in
which damages to which this
insurance applies are alleged.
c. Liquor Liability
"Bodily injury" or "property damage" for
which any insured may be held liable by
reason of:
(1) Causing or contributing to the
intoxication of any person;
(2) The furnishing of alcoholic beverages to
a person under the legal drinking age or
under the influence of alcohol; or
(3) Any statute, ordinance or regulation
relating to the sale, gift, distribution or
use of alcoholic beverages.
This exclusion applies even if the claims
allege negligence or other wrongdoing in:
(a) The supervision, hiring, employment,
training or monitoring of others by an
insured; or
(b) Providing or failing to provide
transportation with respect to any
person that may be under the
influence of alcohol;
if the "occurrence" which caused the "bodily
injury" or "property damage", involved that
which is described in Paragraph (1), (2) or
(3) above.
However, this exclusion applies only if you
are in the business of manufacturing,
distributing, selling, se rving or furnishing
alcoholic beverages. For the purposes of
this exclusion, permitting a person to bring
alcoholic beverages on your premises, for
consumption on your premises, whether or
not a fee is charged or a license is required
for such activity, is not by itself considered
the business of selling, serving or furnishing
alcoholic beverages.
d. Workers' Compensation And Similar
Laws
Any obligation of the insured under a
workers' compensation, disability benefits
or unemployment compensation law or any
similar law.
e. Employer's Liability
"Bodily injury" to:
(1) An "employee" of the insured arising out
of and in the course of:
(a) Employment by the insured; or
(b) Performing duties related to the
conduct of the insured's business; or
(2) The spouse, child, parent, brother or
sister of that "employee" as a
consequence of Paragraph (1) above.
This exclusion applies whether the insured
may be liable as an employer or in any
other capacity and to any obligation to
share damages with or repay someone else
who must pay damages because of the
injury.
This exclusion does not apply to liability
assumed by the insured under an "insured
contract".
f. Pollution
(1) "Bodily injury" or "property damage"
arising out of the actual, alleged or
threatened discharge, dispersal,
seepage, migration, release or escape
of "pollutants":
(a) At or from any premises, site or
location which is or was at any time
owned or occupied by, or rented or
loaned to, any insured. However, this
subparagraph does not apply to:
(i) "Bodily injury" if sustained within
a building and caused by smoke,
fumes, vapor or soot produced by
or originating from equipment that
is used to heat, cool or
dehumidify the building, or
equipment that is used to heat
water for personal use, by the
building's occupants or their
guests;
(ii) "Bodily injury" or "property
damage" for which you may be
held liable, if you are a contractor
and the owner or lessee of such
premises, site or location has
been added to your policy as an
additional insured with respect to
your ongoing operations
performed for that additional
insured at that premises, site or
location and such premises, site
or location is not and never was
owned or occupied by, or rented
or loaned to, any insured, other
than that additional insured; or
(iii) "Bodily injury" or "property
damage" arising out of heat,
smoke or fumes from a "hostile
fire";
BP 00 03 07 13 © Insurance Services Office, Inc., 2012 Page 39 of 53
(b) At or from any premises, site or
location which is or was at any time
used by or for any insured or others
for the handling, storage, disposal,
processing or treatment of waste;
(c) Which are or were at any time
transported, handled, stored, treated,
disposed of, or processed as waste
by or for:
(i) Any insured; or
(ii) Any person or organization for
whom you may be legally
responsible;
(d) At or from any premises, site or
location on which any insured or any
contractors or subcontractors
working directly or indirectly on any
insured's behalf are performing
operations if the "pollutants" are
brought on or to the premises, site or
location in connection with such
operations by such insured,
contractor or subcontractor.
However, this subparagraph does
not apply to:
(i) "Bodily injury" or "property
damage" arising out of the
escape of fuels, lubricants or
other operating fluids which are
needed to perform the normal
electrical, hydraulic or
mechanical functions necessary
for the operation of "mobile
equipment" or its parts, if such
fuels, lubricants or other
operating fluids escape from a
vehicle part designed to hold,
store or receive them. This
exception does not apply if the
"bodily injury" or "property
damage" arises out of the
intentional discharge, dispersal or
release of the fuels, lubricants or
other operating fluids, or if such
fuels, lubricants or other
operating fluids are brought on or
to the premises, site or location
with the intent that they be
discharged, dispersed or
released as part of the operations
being performed by such insured,
contractor or subcontractor;
(ii) "Bodily injury" or "property
damage" sustained within a
building and caused by the
release of gases, fumes or
vapors from materials brought
into that building in connection
with operations being performed
by you or on your behalf by a
contractor or subcontractor; or
(iii) "Bodily injury" or "property
damage" arising out of heat,
smoke or fumes from a "hostile
fire"; or
(e) At or from any premises, site or
location on which any insured or any
contractors or subcontractors
working directly or indirectly on any
insured's behalf are performing
operations if the operations are to
test for, monitor, clean up, remove,
contain, treat, detoxify or neutralize,
or in any way respond to, or assess
the effects of, "pollutants".
(2) Any loss, cost or expense arising out of
any:
(a) Request, demand, order or statutory
or regulatory requirement that any
insured or others test for, monitor,
clean up, remove, contain, treat,
detoxify or neutralize, or in any way
respond to, or assess the effects of,
"pollutants"; or
(b) Claim or "suit" by or on behalf of a
governmental authority for damages
because of testing for, monitoring,
cleaning up, removing, containing,
treating, detoxifying or neutralizing,
or in any way responding to, or
assessing the effects of, "pollutants".
However, this paragraph does not apply
to liability for damages because of
"property damage" that the insured
would have in the absence of such
request, demand, order or statutory or
regulatory requirement or such claim or
"suit" by or on behalf of a governmental
authority.
g. Aircraft, Auto Or Watercraft
"Bodily injury" or "property damage" arising
out of the ownership, maintenance, use or
entrustment to others of any aircraft, "auto"
or watercraft owned or operated by or
rented or loaned to any insured. Use
includes operation and "loading or
unloading".
This exclusion applies even if the claims
allege negligence or other wrongdoing in
the supervision, hiring, employment,
training or monitoring of others by an
insured, if the "occurrence" which caused
the "bodily injury" or "property damage"
involved the ownership, maintenance, use
or entrustment to others of any aircraft,
"auto" or watercraft that is owned or
operated by or rented or loaned to any
insured.
This exclusion does not apply to:
(1) A watercraft while ashore on premises
you own or rent;
(2) A watercraft you do not own that is:
(a) Less than 51 feet long; and
(b) Not being used to carry persons or
property for a charge;
(3) Parking an "auto" on, or on the ways
next to, premises you own or rent,
provided the "auto" is not owned by or
rented or loaned to you or the insured;
(4) Liability assumed under any "insured
contract" for the ownership,
maintenance or use of aircraft or
watercraft; or
(5) "Bodily injury" or "property damage"
arising out of:
(a) The operation of machinery or
equipment that is attached to, or part
of, a land vehicle that would qualify
under the definition of "mobile
equipment" if it were not subject to a
compulsory or financial responsibility
law or other motor vehicle insurance
or motor vehicle registration law
where it is licensed or principally
garaged; or
(b) The operation of any of the following
machinery or equipment:
(i) Cherry pickers and similar
devices mounted on automobile
or truck chassis and used to raise
or lower workers; and
(ii) Air compressors, pumps and
generators, including spraying,
welding, building cleaning,
geophysical exploration, lighting
and well servicing equipment.
h. Mobile Equipment
"Bodily injury" or "property damage" arising
out of:
(1) The transportation of "mobile
equipment" by an "auto" owned or
operated by or rented or loaned to any
insured; or
(2) The use of "mobile equipment" in, or
while in practice for, or while being
prepared for, any prearranged racing,
speed, demolition or stunting activity.
i. War
"Bodily injury", "property damage" or
"personal and advertising injury", however
caused, arising, directly or indirectly, out of:
(1) War, including undeclared or civil war;
(2) Warlike action by a military force,
including action in hindering or
defending against an actual or expected
attack, by any government, sovereign or
other authority usin g military personnel
or other agents; or
(3) Insurrection, rebellion, revolution,
usurped power, or action taken by
government authority in hindering or
defending against any of these.
j. Professional Services
"Bodily injury", "property damage" or
"personal and advertising injury" caused by
the rendering or failure to render any
professional service. This includes but is
not limited to:
(1) Legal, accounting or advertising
services;
(2) Preparing, approving, or failing to
prepare or approve maps, drawings,
opinions, reports, surveys, change
orders, designs or specifications;
(3) Supervisory, inspection or engineering
services;
(4) Medical, surgical, dental, X-ray or
nursing services treatment, advice or
instruction;
(5) Any health or therapeutic service
treatment, advice or instruction;
(6) Any service, treatment, advice or
instruction for the purpose of
appearance or skin enhancement, hair
removal or replacement or personal
grooming;
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(7) Optometry or optical or hearing aid
services including the prescribing,
preparation, fitting, demonstration or
distribution of ophthalmic lenses and
similar products or hearing aid devices;
(8) Body piercing services; and
(9) Services in the practice of pharmacy.
This exclusion applies even if the claims
allege negligence or other wrongdoing in
the supervision, hiring, employment,
training or monitoring of others by an
insured, if the "occurrence" which caused
the "bodily injury" or "property damage", or
the offense which caused the "personal and
advertising injury", involved the rendering or
failure to render of any professional service.
k. Damage To Property
"Property damage" to:
(1) Property you own, rent or occupy,
including any costs or expenses
incurred by you, or any other person,
organization or entity, for repair,
replacement, enhancement, restoration
or maintenance of such property for any
reason, including prevention of injury to
a person or damage to another's
property;
(2) Premises you sell, give away or
abandon, if the "property damage"
arises out of any part of those premises;
(3) Property loaned to you;
(4) Personal property in the care, custody
or control of the insured;
(5) That particular part of real property on
which you or any contractor or
subcontractor working directly or
indirectly on your behalf is performing
operations, if the "property damage"
arises out of those operations; or
(6) That particular part of any property that
must be restored, repaired or replaced
because "your work" was incorrectly
performed on it.
Paragraphs (1), (3) and (4) of this exclusion
do not apply to "property damage" (other
than damage by fire) to premises, including
the contents of such premises, rented to
you for a period of seven or fewer
consecutive days. A separate Limit of
Insurance applies to Damage To Premises
Rented To You as described in Paragraph
D. Liability And Medical Expenses Limits Of
Insurance in Section II – Liability.
Paragraph (2) of this exclusion does not
apply if the premises are "your work" and
were never occupied, rented or held for
rental by you.
Paragraphs (3), (4), (5) and (6) of this
exclusion do not apply to liability assumed
under a sidetrack agreement.
Paragraph (6) of this exclusion does not
apply to "property damage" included in the
"products-completed operations hazard".
l. Damage To Your Product
"Property damage" to "your product" arising
out of it or any part of it.
m. Damage To Your Work
"Property damage" to "your work" arising
out of it or any part of it and included in the
"products-completed operations hazard".
This exclusion does not apply if the
damaged work or the work out of which the
damage arises was performed on your
behalf by a subcontractor.
n. Damage To Impaired Property Or
Property Not Physically Injured
"Property damage" to "impaired property" or
property that has not been physically
injured, arising out of:
(1) A defect, deficiency, inadequacy or
dangerous condition in "your product" or
"your work"; or
(2)
A delay or failure by you or anyone
acting on your behalf to perform a
contract or agreement in accordance
with its terms.
This exclusion does not apply to the loss of
use of other property arising out of sudden
and accidental physical injury to "your
product" or "your work" after it has been put
to its intended use.
o. Recall Of Products, Work Or Impaired
Property
Damages claimed for any loss, cost or
expense incurred by you or others for the
loss of use, withdrawal, recall, inspection,
repair, replacement, adjustment, removal or
disposal of:
(1) "Your product";
(2) "Your work"; or
(3) "Impaired property";
if such product, work or property is
withdrawn or recalled from the market or
from use by any person or organization
because of a known or suspected defect,
deficiency, inadequacy or dangerous
condition in it.
p. Personal And Advertising Injury
"Personal and advertising injury":
(1) Caused by or at the direction of the
insured with the knowledge that the act
would violate the rights of another and
would inflict "personal and advertising
injury";
(2) Arising out of oral or written publication,
in any manner, of material, if done by or
at the direction of the insured with
knowledge of its falsity;
(3) Arising out of oral or written publication,
in any manner, of material whose first
publication took place before the
beginning of the policy period;
(4) For which the insured has assumed
liability in a contract or agreement. This
exclusion does not apply to liability for
damages that the insured would have in
the absence of the contract or
agreement;
(5) Arising out of a breach of contract,
except an implied contract to use
another's advertising idea in your
"advertisement";
(6) Arising out of the failure of goods,
products or services to conform with any
statement of quality or performance
made in your "advertisement";
(7) Arising out of the wrong description of
the price of goods, products or services
stated in your "advertisement";
(8) Committed by an insured whose
business is:
(a) Advertising, broadcasting, publishing
or telecasting;
(b) Designing or determining content of
web sites for others; or
(c) An Internet search, access, content
or service provider.
However, this exclusion does not apply
to Paragraphs 14.a., b. and c. of
"personal and advertising injury" under
Paragraph F. Liability And Medical
Expenses Definitions.
For the purposes of this exclusion, the
placing of frames, borders or links, or
advertising, for you or others anywhere
on the Internet, by itself, is not
considered the business of advertising,
broadcasting, publishing or telecasting;
(9) Arising out of the actual, alleged or
threatened discharge, dispersal,
seepage, migration, release or escape
of "pollutants" at any time;
(10) With respect to any loss, cost or
expense arising out of any:
(a) Request, demand or order that any
insured or others test for, monitor,
clean up, remove, contain, treat,
detoxify or neutralize, or in any way
respond to, or assess the effects of,
"pollutants"; or
(b) Claim or "suit" by or on behalf of a
governmental authority for damages
because of testing for, monitoring,
cleaning up, removing, containing,
treating, detoxifying or neutralizing,
or in any way responding to, or
assessing the effects of, "pollutants";
(11) Arising out of an electronic chatroom or
bulletin board the insured hosts, owns or
over which the insured exercises
control;
(12) Arising out of the infringement of
copyright, patent, trademark, trade
secret or other intellectual property
rights. Under this exclusion, such other
intellectual property rights do not include
the use of another's advertising idea in
your "advertisement".
However, this exclusion does not apply
to infringement, in your "advertisement",
of copyright, trade dress or slogan;
(13) Arising out of the unauthorized use of
another's name or product in your e-mail
address, domain name or metatags, or
any other similar tactics to mislead
another's potential customers.
q. Electronic Data
Damages arising out of the loss of, loss of
use of, damage to, corruption of, inability to
access, or inability to manipulate electronic
data.
However, this exclusion does not apply to
liability for damages because of "bodily
injury".
BP 00 03 07 13 © Insurance Services Office, Inc., 2012 Page 43 of 53
As used in this exclusion, electronic data
means information, facts or computer
programs stored as or on, created or used
on, or transmitted to or from computer
software (including systems and
applications software), on hard or floppy
disks, CD-ROMs, tapes, drives, cells, data
processing devices or any other
repositories of computer software which are
used with electronically controlled
equipment. The term computer programs,
referred to in the foregoing description of
electronic data, means a set of related
electronic instructions which direct the
operations and functions of a computer or
device connected to it, which enable the
computer or device to receive, process,
store, retrieve or send data.
r. Criminal Acts
"Personal and advertising injury" arising out
of a criminal act committed by or at the
direction of the insured.
s. Recording And Distribution Of Material
Or Information In Violation Of Law
"Bodily injury", "property damage" or
"personal and advertising injury" arising
directly or indirectly out of any action or
omission that violates or is alleged to
violate:
(1) The Telephone Consumer Protection
Act (TCPA), including any amendment
of or addition to such law;
(2) The CAN-SPAM Act of 2003, including
any amendment of or addition to such
law;
(3) The Fair Credit Reporting Act (FCRA),
and any amendment of or addition to
such law, including the Fair and
Accurate Credit Transaction Act
(FACTA); or
(4) Any federal, state or local statute,
ordinance or regulation, other than the
TCPA, CAN-SPAM Act of 2003 or
FCRA and their amendments and
additions, that addresses, prohibits, or
limits the printing, dissemination,
disposal, collecting, recording, sending,
transmitting, communicating or
distribution of material or information.
Exclusions c., d., e., f., g., h., i., k., l., m., n.
and o. in Section II – Liability do not apply to
damage by fire to premises while rented to
you, or temporarily occupied by you with
permission of the owner. A separate Damage
To Premises Rented To You Limit of Insurance
applies to this coverage as described in
Paragraph D. Liability And Medical Expenses
Limits of Insurance in Section II – Liability.
2. Applicable To Medical Expenses Coverage
We will not pay expenses for "bodily injury":
a. To any insured, except "volunteer workers".
b. To a person hired to do work for or on
behalf of any insured or a tenant of any
insured.
c. To a person injured on that part of premises
you own or rent that the person normally
occupies.
d. To a person, whether or not an "employee"
of any insured, if benefits for the "bodily
injury" are payable or must be provided
under a workers' compensation or disability
benefits law or a similar law.
e. To a person injured while practicing,
instructing or participating in any physical
exercises or games, sports or athletic
contests.
f. Included within the "products-completed
operations hazard".
g. Excluded under Business Liability
Coverage.
3. Applicable To Both Business Liability
Coverage And Medical Expenses Coverage
– Nuclear Energy Liability Exclusion
This insurance does not apply:
a. Under Business Liability Coverage, to
"bodily injury" or "property damage":
(1) With respect to which an insured under
the policy is also an insured under a
nuclear energy liabilit y policy issued by
the Nuclear Energy Liability Insurance
Association, Mutual Atomic Energy
Liability Underwriters or Nuclear
Insurance Association of Canada, or
would be an insured under any such
policy but for its termination upon
exhaustion of its limit of liability; or
(2) Resulting from the "hazardous
properties" of "nuclear material" and
with respect to which:
(a) Any person or organization is
required to maintain financial
protection pursuant to the Atomic
Energy Act of 1954, or any law
amendatory thereof; or
(b) The insured is, or had this policy not
been issued would be, entitled to
indemnity from the United States of
America, or any agency thereof,
under any agreement entered into by
the United States of America, or any
agency thereof, with any person or
organization.
b. Under Medical Expenses Coverage, to
expenses incurred with respect to "bodily
injury" resulting from the "hazardous
properties" of "nuclear material" and arising
out of the operation of a "nuclear facility" by
any person or organization.
c. Under Business Liability Coverage, to
"bodily injury" or "property damage"
resulting from the "hazardous properties" of
the "nuclear material"; if:
(1) The "nuclear material":
(a) Is at any "nuclear facility" owned by,
or operated by or on behalf of, an
insured; or
(b) Has been discharged or dispersed
therefrom;
(2) The "nuclear material" is contained in
"spent fuel" or "waste" at any time
possessed, handled, used, processed,
stored, transported or disposed of by or
on behalf of an insured; or
(3) The "bodily injury" or "property damage"
arises out of the furnishing by an
insured of services, materials, parts or
equipment in connection with the
planning, construction, maintenance,
operation or use of any "nuclear facility";
but if such facility is located within the
United States of America, its territories
or possessions or Canada, this
Exclusion (3) applies only to "property
damage" to such "nuclear facility" and
any property thereat.
d. As used in this exclusion:
(1) "By-product material" has the meaning
given it in the Atomic Energy Act of
1954 or in any law amendatory thereof;
(2) "Hazardous properties" include
radioactive, toxic or explosive
properties;
(3) "Nuclear facility" means:
(a) Any "nuclear reactor";
(b) Any equipment or device designed
or used for:
(i) Separating the isotopes of
uranium or plutonium;
(ii) Processing or utilizing "spent
fuel"; or
(iii) Handling, processing or
packaging "waste";
(c) Any equipment or device used for
the processing, fabricating or
alloying of "special nuclear material"
if at any time the total amount of
such material in the custody of the
insured at the premises where such
equipment or device is located
consists of or contains more than 25
grams of plutonium or uranium 233
or any combination thereof, or more
than 250 grams of uranium 235;
(d) Any structure, basin, excavation,
premises or place prepared or used
for the storage or disposal of
"waste";
and includes the site on which any of the
foregoing is located, all operations
conducted on such site and all premises
used for such operations;
(4) "Nuclear material" means "source
material", "special nuclear material" or
"by-product material";
(5) "Nuclear reactor" means any apparatus
designed or used to sustain nuclear
fission in a self-supporting chain
reaction or to contain a critical mass of
fissionable material;
(6) "Property damage" includes all forms of
radioactive contamination of property;
(7) "Source material" has the meaning
given it in the Atomic Energy Act of
1954 or in any law amendatory thereof;
(8) "Special nuclear material" has the
meaning given it in the Atomic Energy
Act of 1954 or in any law amendatory
thereof;
(9) "Spent fuel" means any fuel element or
fuel component, solid or liquid, which
has been used or exposed to radiation
in a "nuclear reactor";
BP 00 03 07 13 © Insurance Services Office, Inc., 2012 Page 45 of 53
(10) "Waste" means any waste material:
(a) Containing "by-product material"
other than the tailin gs or wastes
produced by the extraction or
concentration of uranium or thorium
from any ore processed primarily for
its "source material" content; and
(b) Resulting from the operation by any
person or organization of any
"nuclear facility" included under
Paragraphs (a) and (b) of the
definition of "nuclear facility".
C. Who Is An Insured
1. If you are designated in the Declarations as:
a. An individual, you and your spouse are
insureds, but only with respect to the
conduct of a business of which you are the
sole owner.
b. A partnership or joint venture, you are an
insured. Your members, your partners and
their spouses are also insureds, but only
with respect to the conduct of your
business.
c. A limited liability company, you are an
insured. Your members are also insureds,
but only with respect to the conduct of your
business. Your managers are insureds, but
only with respect to their duties as your
managers.
d. An organization other than a partnership,
joint venture or limited liability company,
you are an insured. Your "executive
officers" and directors are insureds, but only
with respect to their duties as your officers
or directors. Your stockholders are also
insureds, but only with respect to their
liability as stockholders.
e. A trust, you are an insured. Your trustees
are also insureds, but only with respect to
their duties as trustees.
2. Each of the following is also an insured:
a. Your "volunteer workers" only while
performing duties related to the conduct of
your business, or your "employees", other
than either your "executive officers" (if you
are an organization other than a
partnership, joint venture or limited liability
company) or your managers (if you are a
limited liability company), but only for acts
within the scope of their employment by you
or while performing duties related to the
conduct of your business. However, none of
these "employees" or "volunteer workers"
are insureds for:
(1) "Bodily injury" or "personal and
advertising injury":
(a) To you, to your partners or members
(if you are a partnership or joint
venture), to your members (if you are
a limited liability company), or to a
co-"employee" while in the course of
his or her employment or performing
duties related to t he conduct of your
business, or to your other "volunteer
workers" while performing duties
related to the conduct of your
business;
(b) To the spouse, child, parent, brother
or sister of that co-"employee" as a
consequence of Paragraph (a)
above;
(c) For which there is any obligation to
share damages with or repay
someone else who must pay
damages because of the injury
described in Paragraph (a) or (b); or
(d) Arising out of his or her providing or
failing to provide professional health
care services.
(2) "Property damage" to property:
(a) Owned, occupied or used by;
(b) Rented to, in the care, custody or
control of, or over which physical
control is being exercised for any
purpose by;
you, any of your "employees", "volunteer
workers", any partner or member (if you
are a partnership or joint venture), or
any member (if you are a limited liability
company).
b. Any person (other than your "employee" or
"volunteer worker"), or any organization
while acting as your real estate manager.
c. Any person or organization having proper
temporary custody of your property if you
die, but only:
(1) With respect to liability arising out of the
maintenance or use of that property;
and
(2) Until your legal representative has been
appointed.
d. Your legal representative if you die, but only
with respect to duties as such. That
representative will have all your rights and
duties under this policy.
No person or organization is an insured with
respect to the conduct of any current or past
partnership, joint venture or limited liability
company that is not shown as a Named Insured in
the Declarations.
D. Liability And Medical Expenses Limits Of
Insurance
1. The Limits of Insurance of Section II – Liability
shown in the Declarations and the rules below
fix the most we will pay regardless of the
number of:
a. Insureds;
b. Claims made or "suits" brought; or
c. Persons or organizations making claims or
bringing "suits".
2. The most we will pay for the sum of all
damages because of all:
a. "Bodily injury", "property damage" and
medical expenses arising out of any one
"occurrence"; and
b. "Personal and advertising injury" sustained
by any one person or organization;
is the Liability and Medical Expenses limit
shown in the Declarations. But the most we will
pay for all medical expenses because of
"bodily injury" sustained by any one person is
the Medical Expenses limit shown in the
Declarations.
3. The most we will pay under Business Liability
Coverage for damages because of "property
damage" to a premises while rented to you or
in the case of fire while rented to you or
temporarily occupied by you with permission of
the owner is the applicable Damage To
Premises Rented To You limit shown for that
premises in the Declarations. For a premises
temporarily occupied by you, the applicable
limit will be the highest Damage To Premises
Rented To You limit shown in the Declarations.
4. Aggregate Limits
The most we will pay for:
a. All "bodily injury" and "property damage"
that is included in t he "products-completed
operations hazard" is twice the Liability and
Medical Expenses limit.
b. All:
(1) "Bodily injury" and "property damage"
except damages because of "bodily
injury" or "property damage" included in
the "products-completed operations
hazard";
(2) Plus medical expenses;
(3) Plus all "personal and advertising injury"
caused by offenses committed;
is twice the Liability and Medical Expenses
limit.
Subject to Paragraph a. or
b. above, whichever
applies, the Damage To Premises Rented To
You limit is the most we will pay for damages
because of "property damage" to any one
premises, while rented to you, or in the case of
fire, while rented to you or temporarily
occupied by you with permission of the owner.
The Limits of Insurance of Section II – Liability
apply separately to each consecutive annual
period and to any remaining period of less than
12 months, starting with the beginning of the
policy period shown in the Declarations, unless
the policy period is extended after issuance for
an additional period of less than 12 months. In
that case, the additional period will be deemed
part of the last preceding period for purposes
of determining the Limits of Insurance.
E. Liability And Medical Expenses General
Conditions
1. Bankruptcy
Bankruptcy or insolvency of the insured or of
the insured's estate will not relieve us of our
obligations under this policy.
BP 00 03 07 13 © Insurance Services Office, Inc., 2012 Page 47 of 53
2. Duties In The Event Of Occurrence,
Offense, Claim Or Suit
a. You must see to it that we are notified as
soon as practicable of an "occurrence" or
an offense which may result in a claim. To
the extent possible, notice should include:
(1) How, when and where the "occurrence"
or offense took place;
(2) The names and addresses of any
injured persons and witnesses; and
(3) The nature and location of any injury or
damage arising out of the "occurrence"
or offense.
b. If a claim is made or "suit" is brought
against any insured, you must:
(1) Immediately record the specifics of the
claim or "suit" and the date received;
and
(2) Notify us as soon as practicable.
You must see to it that we receive written
notice of the claim or "suit" as soon as
practicable.
c. You and any other involved insured must:
(1) Immediately send us copies of any
demands, notices, summonses or legal
papers received in connection with the
claim or "suit";
(2) Authorize us to obtain records and other
information;
(3) Cooperate with us in the investigation or
settlement of the claim or defense
against the "suit"; and
(4) Assist us, upon our request, in the
enforcement of any right against any
person or organization that may be
liable to the insured because of injury or
damage to which this insurance may
also apply.
d. No insured will, except at that insured's own
cost, voluntarily make a payment, assume
any obligation, or in cur any expense, other
than for first aid, without our consent.
3. Legal Action Against Us
No person or organization has a right under
this policy:
a. To join us as a party or otherwise bring us
into a "suit" asking for damages from an
insured; or
b. To sue us on this policy unless all of its
terms have been fully complied with.
A person or organization may sue us to
recover on an agreed settlement or on a final
judgment against an insured; but we will not be
liable for damages that are not payable under
the terms of this policy or that are in excess of
the applicable Limit of Insurance. An agreed
settlement means a settlement and release of
liability signed by us, the insured and the
claimant or the claimant's legal representative.
4. Separation Of Insureds
Except with respect to the Limits of Insurance
of Section II – Liability, and any rights or duties
specifically assigned in this policy to the first
Named Insured, this insurance applies:
a. As if each Named Insured were the only
Named Insured; and
b. Separately to each insured against whom
claim is made or "suit" is brought.
F. Liability And Medical Expenses Definitions
1. "Advertisement" means a notice that is
broadcast or published to the general public or
specific market segments about your goods,
products or services for the purpose of
attracting customers or supporters. For the
purposes of this definition:
a. Notices that are published include material
placed on the Internet or on similar
electronic means of communication; and
b. Regarding web sites, only that part of a web
site that is about y our goods, products or
services for the purposes of attracting
customers or supporters is considered an
advertisement.
2. "Auto" means:
a. A land motor vehicle, trailer or semitrailer
designed for travel on public roads,
including any attached machinery or
equipment; or
b. Any other land vehicle that is subject to a
compulsory or financial responsibility law or
other motor vehicle insurance or motor
vehicle registration law where it is licensed
or principally garaged.
However, "auto" does not include "mobile
equipment".
3. "Bodily injury" means bodily injury, sickness or
disease sustained by a person, including death
resulting from any of these at any time.
4. "Coverage territory" means:
a. The United States of America (including its
territories and possessions), Puerto Rico
and Canada;
b. International waters or airspace, but only if
the injury or damage occurs in the course of
travel or transportation between any places
included in Paragraph a. above; or
c. All other parts of the wo rld if the injury or
damage arises out of:
(1) Goods or products made or sold by you
in the territory described in Paragraph a.
above;
(2) The activities of a person whose home
is in the territory described in Paragraph
a. above, but is away for a short time on
your business; or
(3) "Personal and advertising injury"
offenses that take place through the
Internet or similar electronic means of
communication;
provided the insured's responsibility to pay
damages is determined in a "suit" on the merits
in the territory described in Paragraph a. above
or in a settlement we agree to.
5. "Employee" includes a "leased worker".
"Employee" does not include a "temporary
worker".
6. "Executive officer" means a person holding any
of the officer positions created by your charter,
constitution, bylaws or any other similar
governing document.
7. "Hostile fire" means one which becomes
uncontrollable or breaks out from where it was
intended to be.
8. "Impaired property" means tangible property,
other than "your product" or "your work", that
cannot be used or is less useful because:
a. It incorporates "your product" or "your work"
that is known or thought to be defective,
deficient, inadequate or dangerous; or
b. You have failed to fulfill the terms of a
contract or agreement;
if such property can be restored to use by:
(1) The repair, replacement, adjustment or
removal of "your product" or "your work";
or
(2) Your fulfilling the terms of the contract or
agreement.
9. "Insured contract" means:
a. A contract for a lease of premises.
However, that portion of the contract for a
lease of premises that indemnifies any
person or organization for damage by fire to
premises while rented to you or temporarily
occupied by you with permission of the
owner is not an "insured contract";
b. A sidetrack agreement;
c. Any easement or license agreement,
except in connection with construction or
demolition operations on or within 50 feet of
a railroad;
d. An obligation, as required by ordinance, to
indemnify a municipality, except in
connection with work for a municipality;
e. An elevator maintenance agreement;
f. That part of any other contract or
agreement pertaining to your business
(including an indemnification of a
municipality in connection with work
performed for a municipality) under which
you assume the tort liability of another party
to pay for "bodily injury" or "property
damage" to a third person or organization.
Tort liability means a liability that would be
imposed by law in the absence of any
contract or agreement.
Paragraph f. does not include that part of
any contract or agreement:
(1)
That indemnifies a railroad for "bodily
injury" or "property damage" arising out
of construction or demolition operations,
within 50 feet of any railroad property
and affecting any railroad bridge or
trestle, tracks, roadbeds, tunnel,
underpass or crossing;
(2) That indemnifies an architect, engineer
or surveyor for injury or damage arising
out of:
(a) Preparing, approving or failing to
prepare or approve maps, drawings,
opinions, reports, surveys, change
orders, designs or specifications; or
(b) Giving directions or instructions, or
failing to give them, if that is the
primary cause of the injury or
damage; or
(3) Under which the insured, if an architect,
engineer or surveyor, assumes liability
for an injury or damage arising out of the
insured's rendering or failure to render
professional services, including those
listed in Paragraph (2) above and
supervisory, inspection or engineering
services.
10. "Leased worker" means a person leased to you
by a labor leasing firm under an agreement
between you and the labor leasing firm, to
perform duties related to the conduct of your
business. "Leased worker" does not include a
"temporary worker".
BP 00 03 07 13 © Insurance Services Office, Inc., 2012 Page 49 of 53
11. "Loading or unloading" means the handling of
property:
a. After it is moved from the place where it is
accepted for movement into or onto an
aircraft, watercraft or "auto";
b. While it is in or on an aircraft, watercraft or
"auto"; or
c. While it is being moved from an aircraft,
watercraft or "auto" to the place where it is
finally delivered;
but "loading or unloading" does not include the
movement of property by means of a
mechanical device, other than a hand truck,
that is not attached to the aircraft, watercraft or
"auto".
12. "Mobile equipment" means any of the following
types of land vehicles, including any attached
machinery or equipment:
a. Bulldozers, farm machinery, forklifts and
other vehicles designed for use principally
off public roads;
b. Vehicles maintained for use solely on or
next to premises you own or rent;
c. Vehicles that travel on crawler treads;
d. Vehicles, whether self-propelled or not, on
which are permanently mounted:
(1) Power cranes, shovels, loaders, diggers
or drills; or
(2) Road construction or resurfacing
equipment such as graders, scrapers or
rollers;
e. Vehicles not described in Paragraph a., b.,
c. or d. above that are not self-propelled
and are maintained primarily to provide
mobility to permanently attached equipment
of the following types:
(1) Air compressors, pumps and
generators, including spraying, welding,
building cleaning, geophysical
exploration, lighting and well servicing
equipment; or
(2) Cherry pickers and similar devices used
to raise or lower workers;
f. Vehicles not described in Paragraph a., b.,
c. or d. above maintained primarily for
purposes other than the transportation of
persons or cargo.
However, self-propelled vehicles with the
following types of permanently attached
equipment are not "mobile equipment" but
will be considered "autos":
(1) Equipment designed primarily for:
(a) Snow removal;
(b) Road maintenance, but not
construction or resurfacing; or
(c) Street cleaning;
(2) Cherry pickers and similar devices
mounted on automobile or truck chassis
and used to raise or lower workers; and
(3) Air compressors, pumps and
generators, including spraying, welding,
building cleaning, geophysical
exploration, lighting and well servicing
equipment.
However, "mobile equipment" does not include
land vehicles that are subject to a compulsory
or financial responsib ility law or other motor
vehicle insurance or moto r vehicle registration
law where they are licensed or principally
garaged. Land vehicles subject to a
compulsory or financial responsibility law or
other motor vehicle insurance law or motor
vehicle registration law are considered "autos".
13. "Occurrence" means an accident, including
continuous or repeated exposure to
substantially the same general harmful
conditions.
14. "Personal and advertising injury" means injury,
including consequential "bodily injury", arising
out of one or more of the following offenses:
a. False arrest, detention or imprisonment;
b. Malicious prosecution;
c. The wrongful eviction from, wrongful entry
into, or invasion of the right of private
occupancy of a room, dwelling or premises
that a person occupies, committed by or on
behalf of its owner, landlord or lessor;
d. Oral or written publication, in any manner,
of material that slanders or libels a person
or organization or disparages a person's or
organization's goods, products or services;
e. Oral or written publication, in any manner,
of material that violates a person's right of
privacy;
f. The use of another's advertising idea in
your "advertisement"; or
g. Infringing upon another's copyright, trade
dress or slogan in your "advertisement".
15. "Pollutants" means any solid, liquid, gaseous or
thermal irritant or contaminant, including
smoke, vapor, soot, fumes, acids, alkalis,
chemicals and waste. Waste includes materials
to be recycled, reconditioned or reclaimed.
16. "Products-completed operations hazard":
a. Includes all "bodily injury" and "property
damage" occurring away from premises you
own or rent and arising out of "your product"
or "your work" except:
(1) Products that are still in your physical
possession; or
(2) Work that has not yet been completed
or abandoned. However, "your work" will
be deemed completed at the earliest of
the following times:
(a) When all of the work called for in
your contract has been completed.
(b) When all of the work to be done at
the job site has been completed if
your contract calls for work at more
than one job site.
(c) When that part of the work done at
the job site has been put to its
intended use by any other person or
organization other than another
contractor or subcontractor working
on the same project.
Work that may need service,
maintenance, correction, repair or
replacement, but which is otherwise
complete, will be treated as completed.
The "bodily injury" or "property damage"
must occur away from premises you own or
rent, unless your business includes the
selling, handling or di stribution of "your
product" for consumption on premises you
own or rent.
b. Does not include "bodily injury" or "property
damage" arising out of:
(1) The transportation of property, unless
the injury or damage arises out of a
condition in or on a vehicle not owned or
operated by you, and that condition was
created by the "loading or unloading" of
that vehicle by any insured; or
(2) The existence of tools, uninstalled
equipment or abandoned or unused
materials.
17. "Property damage" means:
a. Physical injury to tangible property,
including all resulting loss of use of that
property. All such loss of use shall be
deemed to occur at the time of the physical
injury that caused it; or
b. Loss of use of tangible property that is not
physically injured. All such loss of use shall
be deemed to occur at the time of the
"occurrence" that caused it.
For the purposes of this insurance, electronic
data is not tangible property.
As used in this definition, electronic data
means information, facts or programs stored
as, created or used on, or transmitted to or
from computer software, including systems and
applications software, hard or floppy disks, CD-
ROMs, tapes, drives, cells, data processing
devices or any other media which are used
with electronically controlled equipment.
18. "Suit" means a civil proceeding in which
damages because of "bodily injury", "property
damage", or "personal and advertising injury"
to which this insurance applies are alleged.
"Suit" includes:
a. An arbitration proceeding in which such
damages are claimed and to which the
insured must submit or does submit with
our consent; or
b. Any other alternative dispute resolution
proceeding in which such damages are
claimed and to which the insured submits
with our consent.
19. "Temporary worker" means a person who is
furnished to you to substitute for a permanent
"employee" on leave or to meet seasonal or
short-term workload conditions.
20. "Volunteer worker" means a person who is not
your "employee", and who donates his or her
work and acts at the direction of and within the
scope of duties determined by you, and is not
paid a fee, salary or other compensation by
you or anyone else for their work performed for
you.
21. "Your product":
a. Means:
(1) Any goods or products, other than real
property, manufactured, sold, handled,
distributed or disposed of by:
(a) You;
(b) Others trading under your name; or
BP 00 03 07 13 © Insurance Services Office, Inc., 2012 Page 51 of 53
(c) A person or organization whose
business or assets you have
acquired; and
(2) Containers (other than vehicles),
materials, parts or equipment furnished
in connection with such goods or
products.
b. Includes:
(1) Warranties or representations made at
any time with respect to the fitness,
quality, durability, performance or use of
"your product"; and
(2) The providing of or failure to provide
warnings or instructions.
c. Does not include vending machines or
other property rented to or located for the
use of others but not sold.
22. "Your work":
a. Means:
(1) Work or operations performed by you or
on your behalf; and
(2) Materials, parts or equipment furnished
in connection with such work or
operations.
b. Includes:
(1) Warranties or representations made at
any time with respect to the fitness,
quality, durability, performance or use of
"your work"; and
(2) The providing of or failure to provide
warnings or instructions.
SECTION III – COMMON POLICY CONDITIONS
(APPLICABLE TO SECTION I – PROPERTY AND
SECTION II – LIABILITY)
A. Cancellation
1. The first Named Insured shown in the
Declarations may cancel this policy by mailing
or delivering to us advance written notice of
cancellation.
2. We may cancel this policy by mailing or
delivering to the first Named Insured written
notice of cancellation at least:
a. Five days before the effective date of
cancellation if any one of the following
conditions exists at any building that is
Covered Property in this policy:
(1) The building has been vacant or
unoccupied 60 or more consecutive
days. This does not apply to:
(a) Seasonal unoccupancy; or
(b) Buildings in the course of
construction, renovation or addition.
Buildings with 65% or more of the rental
units or floor area vacant or unoccupied
are considered unoccupied under this
provision.
(2) After damage by a Covered Cause of
Loss, permanent repairs to the building:
(a) Have not started; and
(b) Have not been contracted for;
within 30 days of initial payment of loss.
(3) The building has:
(a) An outstanding order to vacate;
(b) An outstanding demolition order; or
(c) Been declared unsafe by
governmental authority.
(4) Fixed and salvageable items have been
or are being removed from the building
and are not being replaced. This does
not apply to such removal that is
necessary or incidental to any
renovation or remodeling.
(5)
Failure to:
(a) Furnish necessary heat, water,
sewer service or electricity for 30
consecutive days or more, except
during a period of seasonal
unoccupancy; or
(b) Pay property taxes that are owing
and have been outstanding for more
than one year following the date due,
except that this provision will not
apply where you are in a bona fide
dispute with the taxing authority
regarding payment of such taxes.
b. 10 days before the effective date of
cancellation if we cancel for nonpayment of
premium.
c. 30 days before the effective date of
cancellation if we cancel for any other
reason.
3. We will mail or deliver our notice to the first
Named Insured's last mailing address known to
us.
4. Notice of cancellation will state the effective
date of cancellation. Th e policy period will end
on that date.
5. If this policy is cancell ed, we will send the first Named Insured any premium refund due. If we
cancel, the refund will be pro rata. If the first
Named Insured cancels, the refund may be
less than pro rata. The cancellation will be
effective even if we have not made or offered a
refund.
6. If notice is mailed, proof of mailing will be
sufficient proof of notice.
B. Changes
This policy contains all the agreements between
you and us concerning the insurance afforded.
The first Named Insured shown in the Declarations
is authorized to make changes in the terms of this
policy with our consent. Th is policy's terms can be
amended or waived only by endorsement issued
by us and made a part of this policy.
C. Concealment, Misrepresentation Or Fraud
This policy is void in any case of fraud by you as it
relates to this policy at an y time. It is also void if you or any other insured, at any time, intentionally
conceals or misrepresents a material fact
concerning:
1. This policy;
2. The Covered Property;
3. Your interest in the Covered Property; or
4. A claim under this policy.
D. Examination Of Your Books And Records
We may examine and audit your books and
records as they relate to this policy at any time
during the policy period and up to three years
afterward.
E. Inspections And Surveys
1. We have the right to:
a. Make inspections and surveys at any time;
b. Give you reports on the conditions we find;
and
c. Recommend changes.
2. We are not obligated to make any inspections,
surveys, reports or recommendations and any
such actions we do undertake relate only to
insurability and the prem iums to be charged.
We do not make safety inspections. We do not
undertake to perform the duty of any person or
organization to provide for the health or safety
of workers or the public. And we do not warrant
that conditions:
a. Are safe and healthful; or
b. Comply with laws, regulations, codes or
standards.
3. Paragraphs 1. and 2. of this condition apply not
only to us, but also to any rating, advisory, rate
service or similar organization which makes
insurance inspections, surveys, reports or
recommendations.
4. Paragraph 2. of this condition does not apply to
any inspections, surveys, reports or
recommendations we may make relative to
certification, under state or municipal statutes,
ordinances or regulations, of boilers, pressure
vessels or elevators.
F. Insurance Under Two Or More Coverages
If two or more of this policy's coverages apply to
the same loss or damage, we will not pay more
than the actual amount of the loss or damage.
G. Liberalization
If we adopt any revision that would broaden the
coverage under this policy without additional
premium within 45 days prior to or during the
policy period, the broadened coverage will
immediately apply to this policy.
H. Other Insurance
1. If there is other insurance covering the same
loss or damage, we will pay only for the
amount of covered loss or damage in excess of
the amount due from that other insurance,
whether you can collect on it or not. But we will
not pay more than the applicable Limit of
Insurance of Section I – Property.
2. Business Liability Coverage is excess over:
a. Any other insurance that insures for direct
physical loss or damage; or
b. Any other primary insurance available to
you covering liability for damages arising
out of the premises or operations for which
you have been added as an additional
insured.
3. When this insurance is excess, we will have no
duty under Business Liability Coverage to
defend any claim or "suit" that any other insurer
has a duty to defend. If no other insurer
defends, we will undertake to do so, but we will
be entitled to the insured's rights against all
those other insurers.
I. Premiums
1. The first Named Insured shown in the
Declarations:
a. Is responsible for the payment of all
premiums; and
b. Will be the payee for any return premiums
we pay.
2. The premium shown in the Declarations was
computed based on rates in effect at the time
the policy was issued. On each renewal,
continuation or anniversary of the effective
date of this policy, we will compute the
premium in accordance with our rates and
rules then in effect.
BP 00 03 07 13 © Insurance Services Office, Inc., 2012 Page 53 of 53
3. With our consent, you may continue this policy
in force by paying a continuation premium for
each successive one-year period. The
premium must be:
a. Paid to us prior to the anniversary date; and
b. Determined in accordance with Paragraph
2. above.
Our forms then in effect will apply. If you do not
pay the continuation premium, this policy will
expire on the first anniversary date that we
have not received the premium.
4. Undeclared exposures or change in your
business operation, acquisition or use of
locations may occur during the policy period
that are not shown in the Declarations. If so,
we may require an additional premium. That
premium will be determined in accordance with
our rates and rules then in effect.
J. Premium Audit
1. This policy is subject to audit if a premium
designated as an advance premium is shown
in the Declarations. We will compute the final
premium due when we determine your actual
exposures.
2. Premium shown in this policy as advance
premium is a deposit premium only. At the
close of each audit period, we will compute the
earned premium for that period and send
notice to the first Named Insured. The due date
for audit premiums is the date shown as the
due date on the bill. If the sum of the advance
and audit premiums paid for the policy period is
greater than the earned premium, we will
return the excess to the first Named Insured.
3. The first Named Insured must keep records of
the information we need for premium
computation and send us copies at such times
as we may request.
K. Transfer Of Rights Of Recovery Against Others
To Us
1. Applicable to Businessowners Property
Coverage:
If any person or organization to or for whom we
make payment under this policy has rights to
recover damages from another, those rights
are transferred to us to the extent of our
payment. That person or organization must do
everything necessary to secure our rights and
must do nothing after loss to impair them. But
you may waive your rights against another
party in writing:
a. Prior to a loss to your Covered Property.
b. After a loss to your Covered Property only
if, at time of loss, that party is one of the
following:
(1) Someone insured by this insurance;
(2) A business firm:
(a) Owned or controlled by you; or
(b) That owns or controls you; or
(3) Your tenant.
You may also accept the usual bills of lading or
shipping receipts limiting the liability of carriers.
This will not restrict your insurance.
2. Applicable to Busi nessowners Liability
Coverage:
If the insured has rights to recover all or part of
any payment we have made under this policy,
those rights are transferred to us. The insured
must do nothing after loss to impair them. At
our request, the insure d will bring "suit" or
transfer those rights to us and help us enforce
them. This condition does not apply to Medical
Expenses Coverage.
L. Transfer Of Your Rights And Duties Under This
Policy
Your rights and duties under this policy may not be
transferred without our written consent except in
the case of death of an individual Named Insured.
If you die, your rights and duties will be transferred
to your legal representative but only while acting
within the scope of duties as your legal
representative. Until your legal representative is
appointed, anyone having proper temporary
custody of your property will have your rights and
duties but only with respect to that property.
BUSINESSOWNERS
BP 01 55 12 19
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
BP 01 55 12 19 © Insurance Services Office, Inc., 2019 Page 1 of 6
CALIFORNIA CHANGES
This endorsement modifies insurance provided under the following:
BUSINESSOWNERS COVERAGE FORM
INFORMATION SECURITY PROTECTION ENDORSEMENT
A. Section I – Property is amended as follows:
1 . With respect to an "open policy", the following
is added to any provision which uses the term
actual cash value:
a . In the event of a total loss to a building or
structure, actual cash value is calculated as
the Limit of Insurance applicable to that
building or structure or the fair market value
of the building or structure, whichever is
less.
b. In the event of a partial loss to a building or
structure, actual cash value is calculated as
b.(1) or b.(2), whichever is less:
( 1 ) The amount it would cost to repair,
rebuild or replace the property less a fair
and reasonable deduction for physical
depreciation of the components of the
building or structure that are normally
subject to repair or replacement during
its useful life. Physical depreciation is
based upon the condition of the property
at the time of loss;
(2) The Limit of Insurance applicable to the
property.
c . In the event of a partial or total loss to
Covered Property other than a building or
structure, actual cash value is calculated as
c.(1) or c.(2), whichever is less:
( 1 ) The amount it would cost to repair or
replace the property less a fair and
reasonable deduction for physical
depreciation, based on the condition of
the property at the time of loss;
( 2 ) The Limit of Insurance applicable to the
property.
d . An "open policy" is a policy under which the
value of Covered Property is not fixed at
policy inception, but is determined at the
time of loss in accor dance with policy
provisions on valuation.
2 . Paragraph E.2. Appraisal Property Loss
Conditions is replaced by the following:
2. Appraisal
If we and you disagree on the value of the
property or the amount of loss, either may
make written request for an appraisal of the
loss. If the request is accepted, each party
will select a competent and impartial
appraiser. Each party shall notify the other
of the appraiser selected within 20 days of
the request. The two a ppraisers will select
an umpire. If they cannot agree within 15
days, either may request that selection be
made by a judge of a court having
jurisdiction. The appraisers will state
separately the value of the property and
amount of loss. If they fail to agree, they will
submit their differences to the umpire. A
decision agreed to by any two will be
binding. Each party will:
a . Pay its chosen appraiser; and
b . Bear the other expenses of the
appraisal and umpire equally.
If there is an appraisal, we will still retain
our right to deny the claim.
3 . Paragraph E.5.d.(1)(c) of the Loss Payment
Property Loss Conditions is deleted.
4. Paragraphs E.5.d.(1)(d) and E.5.d.(5) of the
Loss Payment Property Loss Conditions are
replaced as follows:
(d) We will not pay on a replacement
cost basis for any loss or damage
until the lost or damaged property is
actually repaired or replaced. Prior to
such repair or replacement, we will
pay the actual cash value of the lost
or damaged property as described in
Paragraph A.1. of this Endorsement.
If the actual cash value does not
exhaust the applicable Limit of
Insurance, we will then pay the
difference between the actual cash
value and the replacement cost,
provided that the repair or
replacement is completed:
(i) Within 12 months after we pay
the actual cash value; or
(ii) Within 36 months after we pay
the actual cash value if the loss
or damage relates to a state of
emergency under California Law.
The following provision applies to
real property which is used
predominantly for residential
purposes and consisting of not more
than four dwelling units, and to
coverage on tenants' household
personal property in a residential
unit:
If you, acting in good faith and with
reasonable diligence, encounter a
delay or delays in approval for, or
reconstruction of, the residence that
are beyond your control, we shall
provide one or more additional
extensions of six months for good
cause. Circumstances beyond your
control include, but are not limited to:
(i) Unavoidable construction permit
delays;
(ii) The lack of necessary
construction materials; or
(iii) The unavailability of contractors
to perform the necessary work.
Nothing in this Paragraph (d)
constitutes a waiver of our right to
deny the claim for any valid reason
or to restrict payment in cases of
suspected fraud.
( 5 ) Tenants' improvements and betterments
at:
( a ) Replacement cost in accordance
with the terms set forth in Paragraph
(d) above.
( b ) A proportion of your original cost if
the property is not repaired or
replaced. We will determine the
proportionate value as follows:
( i ) Multiply the original cost by the
number of days from the loss or
damage to the expiration of the
lease; and
(ii) Divide the amount determined in
(i) above by the number of days
from the installation of
improvements to the expiration of
the lease.
If your lease contains a renewal
option, the expiration of the renewal
option period will replace the
expiration of the lease in this
procedure.
( c ) Nothing if others pay for repairs or
replacement.
B. Section III – Common Policy Conditions i s
amended as follows:
1 . Paragraphs A.2. and A.3. Cancellation are
replaced by the following:
2. All Policies In Effect For 60 Days Or
Less
If this Policy has been in effect for 60 days
or less, and is not a renewal of a policy we
have previously issued, we may cancel this
Policy by mailing or delivering to the first
Named Insured at the mailing address
shown in the Policy and to the producer of
record, advance written notice of
cancellation, stating the reason for
cancellation, at least:
a . 10 days before the effective date of
cancellation if we cancel for:
( 1 ) Nonpayment of premium; or
( 2 ) Discovery of fraud by:
( a ) Any insured or his or her
representative in obtaining this
insurance; or
( b ) You or your representative in
pursuing a claim under this
Policy.
b . 30 days before the effective date of
cancellation if we cancel for any other
reason.
BP 01 55 12 19 © Insurance Services Office, Inc., 2019 Page 3 of 6
3. All Policies In Effect For More Than 60
Days
a . If this Policy has been in effect for more
than 60 days, or is a renewal of a policy
we issued, we may cancel this Policy
only upon the occurrence, after the
effective date of the Policy, of one or
more of the following:
( 1 ) Nonpayment of premium, including
payment due on a prior policy we
issued and due during the current
policy term covering the same risks.
( 2 ) Discovery of fraud or material
misrepresentation by:
( a ) Any insured or his or her
representative in obtaining this
insurance; or
( b ) You or your representative in
pursuing a claim under this
Policy.
( 3 ) A judgment by a court or an
administrative tribunal that you have
violated a California or federal law,
having as one of its necessary
elements an act which materially
increases any of the risks insured
against.
( 4 ) Discovery of willful or grossly
negligent acts or omissions, or of
any violations of state laws or
regulations establishing safety
standards, by you or your
representative, which materially
increase any of the risks insured
against.
( 5 ) Failure by you or your representative
to implement reasonable loss control
requirements, agreed to by you as a
condition of policy issuance, or which
were conditions precedent to our use
of a particular rate or rating plan, if
that failure materially increases any
of the risks insured against.
( 6 ) A determination by the
Commissioner of Insurance that the:
( a ) Loss of, or changes in, our
reinsurance covering all or part of
the risk would threaten our
financial integrity or solvency; or
( b ) Continuation of the policy
coverage would:
( i ) Place us in violation of
California Law or the laws of
the state where we are
domiciled; or
(ii) Threaten our solvency.
( 7 ) A change by you or your
representative in the activities or
property of the commercial or
industrial enterprise, which results in
a materially added, increased or
changed risk, unless the added,
increased or changed risk is included
in the Policy.
b . We will mail or deliver advance written
notice of cancellation, stating the reason
for cancellation, to the first Named
Insured, at the mailing address shown in
the Policy, and to the producer of
record, at least:
( 1 ) 10 days before the effective date of
cancellation if we cancel for
nonpayment of premium or discovery
of fraud; or
( 2 ) 30 days before the effective date of
cancellation if we cancel for any
other reason listed in Paragraph 3.a.
2. The following provision is added to Paragraph
A. Cancellation:
7. Residential Property
This provision applies to coverage on real
property which is used predominantly for
residential purposes and consisting of not
more than four dwelling units, and to
coverage on tenants' household personal
property in a residential unit. If such
coverage has been in effect for 60 days or
less and is not a renewal of coverage we
previously issued, we may cancel this
coverage for any reason, except that we
may not cancel this Policy solely because:
a . Corrosive soil conditions exist on the
premises; or
b.
The first Named Insured has:
( 1 ) Accepted an offer of earthquake
coverage; or
( 2 ) Cancelled or did not renew a policy
issued by the California Earthquake
Authority (CEA) that included an
earthquake policy premium
surcharge.
However, we shall cancel this Policy if
the first Named Insured has accepted a
new or renewal policy issued by the
CEA that includes an earthquake policy
premium surcharge but fails to pay the
earthquake policy premium surcharge
authorized by the CEA.
If a state of emergency under California
Law is declared and the residential property
is located in any ZIP Code within or
adjacent to the fire perimeter, as
determined by California Law, we may not
cancel this Policy for one year, beginning
from the date the state of emergency is
declared, solely becau se the dwelling or
other structure is located in an area in
which a wildfire has occurred.However, we
may cancel:
a. When you have not paid the premium,
at any time by letting you know at least
10 days before the date cancellation
takes effect;
b. If willful or grossly negligent acts or
omissions by the named insured, or his
or her representatives, are discovered
that materially increase any of the risks
insured against; or
c. If there are physical changes in the
property insured against, beyond the
catastrophe-damaged condition of the
structures and surface landscape, which
result in the property becoming
uninsurable.
3 . Paragraph C. Concealment,
Misrepresentation Or Fraud is replaced by
the following with respect to loss or damage
caused by fire:
We do not provide coverage to the insured
who, whether before or after a loss, has
committed fraud or intentionally concealed or
misrepresented any material fact or
circumstance concerning:
a . This Policy;
b . The Covered Property;
c . That insured's interest in the Covered
Property; or
d . A claim under this Policy.
4 . Paragraph C. Concealment,
Misrepresentation Or Fraud is replaced by
the following with respect to loss or damage
caused by a Covered Cause of Loss other than
fire:
This Policy is void if any insured, whether
before or after a loss, has committed fraud or
intentionally concealed or misrepresented any
material fact or circumstance concerning:
a . This Policy;
b . The Covered Property;
c . An insured's interest in the Covered
Property; or
d . A claim under this Policy.
5 . Paragraph H.1. Other Insurance is replaced
by the following (with respect to coverage
provided under Section I – Property):
If there is other insurance covering the same
loss or damage, we will pay our share of the
covered loss or damage. Our share is the
proportion that the applicable Limit of
Insurance bears to the Limits of Insurance of
all insurance covering on the same basis.
We will not pay more than the applicable Limit
of Insurance of Section I – Property.
6 . The following paragraph is added and
supersedes any provisions to the contrary:
M. Nonrenewal
1 . Subject to the provisions of Paragraphs
2. and 3. below, if we elect not to renew
this Policy, we will mail or deliver written
notice stating the reason for nonrenewal
to the first Named Insured shown in the
Declarations and to the producer of
record, at least 60 days, but not more
than 120 days, before the expiration or
anniversary date.
We will mail or deliver our notice to the
first Named Insured, and to the producer
of record, at the mailing address shown
in the Policy.
2. Residential Property
This provision applies to coverage on
real property used predominantly for
residential purposes and consisting of
not more than four dwelling units, and to
coverage on tenants' household
property contained in a residential unit.
W e m a y e l e c t n o t t o r e n e w s u c h
coverage for any reason, except that we
will not refuse to renew such coverage
solely because:
a . The first Named Insured has
accepted an offer of earthquake
coverage.
BP 01 55 12 19 © Insurance Services Office, Inc., 2019 Page 5 of 6
However, the following applies only
to insurers who are associate
participating insurers as established
by Cal. Ins. Code Section 10089.16.
We may elect not to renew such
coverage after the first Named
Insured has accepted an offer of
earthquake coverage, if one or more
of the following reasons applies:
( 1 ) The nonrenewal is based on
sound underwriting principles that
relate to the coverages provided
by this Policy and that are
consistent with the approved
rating plan and related
documents filed with the
Department of Insurance as
required by existing law;
( 2 ) The Commissioner of Insurance
finds that the exposure to
potential losses will threaten our
solvency or place us in a
hazardous condition. A
hazardous condition includes, but
is not limited to, a condition in
which we make claims payments
for losses resulting from an
earthquake that occurred within
the preceding two years and that
required a reduction in
policyholder surplus of at least
25% for payment of those claims;
or
( 3 ) We have:
( a ) Lost or experienced a
substantial reduction in the
availability or scope of
reinsurance coverage; or
(b) Experienced a substantial
increase in the premium
charged for reinsurance
coverage of our residential
property insurance policies;
and
the Commissioner has approved
a plan for the nonrenewals that is
fair and equitable, and that is
responsive to the changes in our
reinsurance position.
b . The first Named Insured has
cancelled or did not renew a policy,
issued by the California Earthquake
Authority that included an
earthquake policy premium
surcharge.
c . Corrosive soil conditions exist on the
premises.
If a state of emergency under California
Law is declared and the residential
property is located in any ZIP Code
within or adjacent to the fire perimeter,
as determined by California Law, we
may not nonrenew this Policy for one
year, beginning from the date the state
of emergency is declared, solely
because the dwelling or other structure
is located in an area in which a wildfire
has occurred.
However, we may nonrenew:
a. If willful or grossly negligent acts or
omissions by the named insured, or
his or her representatives, are
discovered that materially increase
any of the risks insured against;
b. If losses unrelated to the
postdisaster loss condition of the
property have occurred that would
collectively render the risk ineligible
for renewal; or
c. If there are physical changes in the
property insured against, beyond the
catastrophe-damaged condition of
the structures and surface
landscape, which result in the
property becoming uninsurable.
3 . We are not required to send notice of
nonrenewal in the following situations:
a . If the transfer or renewal of a policy,
without any changes in terms,
conditions or rates, is between us
and a member of our insurance
group.
b. If the Policy has been extended for
90 days or less, provided that notice
has been given in accordance with
Paragraph 1.
c. If you have obtained replacement
coverage, or if the first Named
Insured has agreed, in writing, within
60 days of the termination of the
Policy, to obtain that coverage.
d. If the Policy is for a period of no
more than 60 days and you are
notified at the time of issuance that it
will not be renewed.
e. If the first Named Insured requests a
change in the terms or conditions or
risks covered by the Policy within 60
days of the end of the policy period.
f . If we have made a written offer to the
first Named Insured, in accordance
with the timeframes shown in
Paragraph 1., to renew the Policy
under changed terms or conditions
or at an increased premium rate,
when the increase exceeds 25%.
C. The following changes apply only to Information
Security Protection Endorsement BP 15 07 if it is
attached to this Policy:
1. Paragraph (2) of Insuring Agreement d.
Security Breach Liability is replaced by the
following:
(2) We will pay for "defense expenses" as a
result of a "claim" in the form of a
"regulatory proceeding" first made
against the insured during the "policy
period" or during the applicable
Extended Reporting Period, in response
t o a " w r o n g f u l a c t " o r a s e r i e s o f "interrelated wrongful acts" covered
under Paragraph d.(1).
2 . Paragraph d. of the definition of "loss" in
Paragraph V. is replaced by the following:
d . With respect to Insuring Agreements d.
Security Breach Liability and g. Web Site
Publishing Liability:
Compensatory damages, settlement
amounts and costs awarded pursuant to
judgments or settlements.
"Loss" does not include:
( 1 ) Civil or criminal fines or penalties
imposed by law;
( 2 ) Punitive or exemplary damages;
( 3 ) The multiplied portion of multiplied
damages;
( 4 ) Taxes;
( 5 ) Royalties;
( 6 ) The amount of any disgorged profits; or
( 7 ) Matters that are uninsurable pursuant to
law.
BUSINESSOWNERS
BP 04 17 01 10
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
BP 04 17 01 10 Insurance Services Office, Inc., 2009 Page 1 of 1
EMPLOYMENT-RELATED PRACTICES EXCLUSION
This endorsement modifies insurance provided under the following:
BUSINESSOWNERS COVERAGE FORM
The fol lowing exclusion is added to Paragraph B.1.
Exclusions – Applicable To Business Liability
Coverage in Section II – Liability:
This insurance does not apply to "bodily in-
jury" or "personal and advertising injury" to:
(1) A person arising out of any:
(a) Refusal to employ that person;
(b) Termination of that person ’s em -
ployment; or
(c) Employment-related practices, poli -
cies, acts or omissions, such as co -
ercion, demotion, evaluation, reas -
signment, discipline, defamation,
harassment, humiliation , discrimina-
tion or malicious prosecution di-
rected at that person; or
(2) The spouse, child, parent, brother or
sister of that person as a conse quence
of "bodily injury" or "personal and adver -
tising injury" to that person at whom any
of the employment -related practices de -
scribed in Paragraph (a), (b) or (c)
above is directed.
This exclusion applies:
(1) Whether the injury -causing event de -
scribed in Paragraph (a), (b) or (c)
above occurs before employment, dur -
ing employment or after employment of
that person;
(2) Whether the insured may be liable as an
employer or in any other capacity; and
(3) To any obligation to share damages with
or repay someone else who must pay
damages because of the injury.
POLICY NUMBER: BUSINESSOWNERS
BP 04 30 07 13
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
PROTECTIVE SAFEGUARDS
This endorsement modifies insurance provided under the following:
BUSINESSOWNERS COVERAGE FORM
SCHEDULE
Premises
Number
Building
Number
Protective Safeguards
Symbols Applicable Description Of "P-9" If Applicab le
Information required to complete this Schedule, if not shown above, will be shown in the Declarations.
A. The following is added to the Property General
Conditions in Section I
Property:
When supplied from an automatic fire
protective system:
Protective Safeguards Nonautomatic fire protective
systems; and1. As a condition of this insurance, you are required to maintain the protective devices or
services listed in the Schedule above.
Hydrants, standpipes and outlets.
b. "P-2" Automatic Fire Alarm, protecting
the entire building, that is: 2. The protective safeguards to which this endorsement applies are identified by the
following symbols: Connected to a central station; or
(2) Reporting to a public or private fire
alarm station. "P-1" Automatic Sprinkler System,
(1)
(a)
(b)
including related supervisory services.
Automatic Sprinkler System means: c. "P-3" Security Service, with a recording system or watch clock, making hourly
rounds covering the entire building, when
the premises are not in actual operation.
Any automatic fire protective or
(b)
(a)
(1)
e.
extinguishing
connected:
system, including
d. "P-4" Service Contract, with a privately
owned fire department providing fireSprinklers and discharge nozzles; protection
premises.
service to the describedDucts, pipes, valves and fittings; (c) Tanks, their component parts and
supports; and "P-5" Automatic Commercial Cooking
Exhaust And Extinguishing System,
(d) Pumps and private fire protection
mains.
installed on cooking appliances and having
the following components:
(1) Hood;
BP 04 30 07 13 Pagec Insurance Services Office, Inc., 2012 a.
(2)
of
BOM0008660-06
1 2
P-1
P-2
001 001
Grease removal device; 2. Failed to maintain any protective safeguard listed in the Schedule above, and over which
you had control, in complete working order.Duct system; and Wet chemical fire extinguishing If part of an Automatic Sprinkler System or Automatic Commercial Cooking Exhaust And
Extinguishing System is shut off due to breakage,
leakage, freezing conditions or opening of
sprinkler heads, notification to us will not be
necessary if you can restore full protection within
48 hours.
equipment.
f. "P-9", the protective system described in
the Schedule.
The following is added to Paragraph B.
Exclusions in Section I
Property:
We will not pay for loss or damages caused by or
resulting from fire if, prior to the fire, you:
1. Knew of any suspension or impairment in any
protective safeguard listed in the Schedule
above and failed to notify us of that fact; or
BP 04 30 07 13
(2)
(4)
B.
(3)
c Insurance Services Office, Inc., 2012Page of
2 2
BUSINESSOWNERS
BP 04 39 07 02
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
BP 04 39 07 02 ISO Properties, Inc., 2001 Page 1 of 1
ABUSE OR MOLESTATION EXCLUSION
This endorsement modifies insurance provided under the following:
BUSINESSOWNERS COVERAGE FORM
The following applies to Section II – Liability and
supersedes any provision to the contrary:
This insurance does not apply to "bodily injury",
"property damage" or "personal and advertising
injury" arising out of:
(a) The actual or threatened abuse or molestation
by anyone of any person while in the care,
custody or control of any insured, or
(b) The negligent:
(i) Employment;
(ii) Investigation;
(iii) Supervision;
(iv) Reporting to the proper authorities, or
failure to so report; or
(v) Retention;
of a person for whom any insured is or ever
was legally responsible and whose conduct
would be excluded by (a) above.
POLICY NUMBER: BUSINESSOWNERS
BP 04 48 07 13
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
ADDITIONAL INSURED DESIGNATED PERSON
OR ORGANIZATION
This endorsement modifies insurance provided under the following:
BUSINESSOWNERS COVERAGE FORM
SCHEDULE
Name Of Additional Insured Person(s) Or Organizatio n(s):
Information required to complete this Schedule, if not shown above, will be shown in the Declarations.
Section II
Liability is amended as follows: B. With respect to the insurance afforded to these additional insureds, the following is added to
Paragraph D. Liability And Medical Expenses
Limits Of Insurance:
1. Insured:
3. Any person(s) or organization(s) shown in the
Schedule is also an additional insured, but only
with respect to liability for "bodily injury",
"property damage" or "personal and advertising
injury" caused, in whole or in part, by your acts
or omissions or the acts or omissions of those
acting on your behalf in the performance of
your ongoing operations or in connection with
your premises owned by or rented to you.
If coverage provided to the additional insured is
required by a contract or agreement, the most we
will pay on behalf of the additional insured is the
amount of insurance:
Required by the contract or agreement; or
2. Available under the applicable Limits Of
Insurance shown in the Declarations;
This endorsement shall not increase the
However:
a. The insurance afforded to such additional
insured only applies to the extent permitted
by law; and
applicable Limits Of Insurance shown in the
Declarations.
b. If coverage provided to the additional
insured is required by a contract or
agreement, the insurance afforded to such
additional insured will not be broader than
that which you are required by the contract
or agreement to provide for such additional
insured.
BP 04 48 07 13
A.