Loading...
HomeMy WebLinkAboutCOASTLINE EQUIPMENT (BRAGG INVESTMENT COMPANY, INC.)INSURANCE ON FILE WORK MAY PROCEED A-2024-029-03 UNTIL INSURANCE EXPIRES I,J(1yL� CITY C DATE:LE R 19 2024 0% ?WACO) AGREEMENT WITH COASTLINE EQUIPMENT TO PROVIDE C1,Q Ale AUTOMOTIVE, MOTORCYCLE AND TRUCK REPAIR SERVICES THIS AGREEMENT is made and entered into on this 20TH day of February, 2024 by and between Bragg Investment Company, Inc., a California corporation dba Coastline Equipment ("Contractor"), and the City of Santa Ana, a charter city and municipal corporation organized and existing under the Constitution and laws of the State of California ("City"). RECITALS A. On August 29, 2023, the City issued Request for Proposal No. 23-098 seeking proposals from qualified contractors to provide automotive, motorcycle, and truck repair services for city -owned fleet vehicles to the Public Works Agency, Parks, Fleet, Facilities Division, on an as -needed basis. B. Contractor submitted a responsive proposal that was amongst one of the eleven (11) vendors selected by the City. Contractor represents that it is able and willing to provide the services described in the scope of work that was included in the RFP. C. In undertaking the performance of this Agreement, Contractor represents that it is knowledgeable in its field and that any services performed by Contractor under this Agreement will be performed in compliance with such standards as may reasonably be expected from a professional contracting firm in the field. NOW THEREFORE, in consideration of the mutual and respective promises, and subject to the terms and conditions hereinafter set forth, the parties agree as follows: 1. SCOPE OF SERVICES Contractor shall perform during the term of this Agreement, the tasks and obligations including all labor, materials, tools, equipment, and incidental customary work required to fully and adequately complete the services described and set forth in Exhibit A, attached hereto and incorporated by reference. 2. COMPENSATION a. City neither warrants nor guarantees any minimum or maximum compensation to Contractor under this Agreement. Contractor shall be paid only for actual services performed under this Agreement at the rates and charges identified in Exhibit B. The total aggregate sum for services, provided by all eleven (11) Contractors selected under RFP 23-098, shall not exceed $2,500,000 for the entire term of this Agreement, including any extension periods exercised by the parties, as detailed below. The annual aggregate amount, available to all the selected Contractors, shall not exceed $500,000. b. Costs for parts required to provide services may be subject to change. Increased costs for parts shall not affect the compensation amounts detailed in Section 2.a. Increase to the compensation amount may only be increased by amendment subject to approval by Page 1 of 9 #356334vl the City Council of the City of Santa Ana. c. Payment by City shall be made within forty-five (45) days following receipt of proper invoice evidencing work performed, subject to City accounting procedures. City and Contractor agree that all payments due and owing under this Agreement shall be made through Automated Clearing House (ACH) transfers. Contractor agrees to execute the City's standard ACH Vendor Payment Authorization and provide required documentation. Upon verification of the data provided, the City will be authorized to deposit payments directly into Contractor's account(s) with financial institutions. Payment need not be made for work which fails to meet the standards of performance set forth in the Recitals which may reasonably be expected by City. 3. TERM This Agreement shall commence on the date first written above for a three (3) year term with the option for the City to grant up to two (2) one (1) year renewals, exercisable by a writing by the City Manager and the City Attorney, unless terminated earlier in accordance with Section 15, below. 4. INDEPENDENT CONTRACTOR Contractor shall, during the entire term of this Agreement, be construed to be an independent Contractor and not an employee of the City. This Agreement is not intended nor shall it be construed to create an employer -employee relationship, a joint venture relationship, or to allow the City to exercise discretion or control over the professional manner in which Contractor performs the services which are the subject matter of this Agreement; however, the services to be provided by Contractor shall be provided in a manner consistent with all applicable standards and regulations governing such services. Contractor shall pay all salaries and wages, employer's social security taxes, unemployment insurance and similar taxes relating to employees and shall be responsible for all applicable withholding taxes. 5. OWNERSHIP OF MATERIALS This Agreement creates a non-exclusive and perpetual license for City to copy, use, modify, reuse, or sublicense any and all copyrights, designs, and other intellectual property embodied in plans, specifications, studies, drawings, estimates, and other documents or works of authorship fixed in any tangible medium of expression, including but not limited to, physical drawings or data magnetically or otherwise recorded on computer diskettes, which are prepared or caused to be prepared by Contractor under this Agreement ("Documents & Data"). Contractor shall require all subcontractors to agree in writing that City is granted a non-exclusive and perpetual license for any Documents & Data the subcontractor prepares under this Agreement. Contractor represents and warrants that Contractor has the legal right to license any and all Documents & Data. Contractor makes no such representation and warranty in regard to Documents & Data which were provided to Contractor by the City. City shall not be limited in any way in its use of the Documents and Data at any time, provided that any such use not within the purposes intended by this Agreement shall be at City's sole risk. Page 2 of 9 #356334v1 6. INSURANCE Prior to undertaking performance of work under this Agreement, Contractor shall maintain and shall require its subcontractors, if any, to obtain and maintain insurance as described below for the duration of this Agreement: a. Minimum Scope and Limit of Insurance (1) Commercial General Liability (CGL). Insurance Services Office Form CG 00 01 covering CGL on an "occurrence" basis, including products and completed operations, property damage, bodily injury and personal & advertising injury with limits no less than $1,000,000 per occurrence. If a general aggregate limit applies, either the general aggregatelimit shall apply separately to this project/location (ISO CG 25 03 or 25 04) or the general aggregate limit shall be twice the required occurrence limit. (2) Garage Keepers Legal Liability. With limits no less than $75,000 per occurrence. (3) Automobile Liability. ISO Form Number CA 00 01 covering any auto (Code 1), or if Contractor has no owned autos, hired, (Code 8) and non -owned autos (Code 9), with a limit no less than $1,000,000 per accident for bodily injury and property damage. (4) Workers' Compensation. As required by the State of California, with Statutory Limits, and Employer's Liability Insurance with limit of no less than $1,000,000 per accident for bodily injury or disease. (5) Broader Coverage. If the Contractor maintains broader coverage and/or higher limits than the minimums shown above, the City requires and shall be entitled to the broader coverage and/or the higher limits maintained by the Contractor. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City. b. Other Insurance Provisions (1) Additional Insured Status. The City, its officers, officials, employees, and volunteers are to be covered as additional insureds on the CGL policy with respect to liability arising out of work or operations performed by or on behalf of the Contractor including materials, parts, or equipment furnished in connectionwith such work or operations. General liability coverage can be provided in the form of an endorsement to the Contractor's insurance (at least as broad as ISO Form CG 20 10 1185 or if notavailable, through the addition of both CG 20 10, CG 20 26, CG 20 33, or CG 20 38; and CG 2037 if a later edition is used). Page 3 of 9 #356334vl (2) Primary Coverage. For any claims related to this contract, the Contractor's insurance coverage shall be primary coverage at least as broad as ISO CG 20 0104 13 as respects the City, its officers, officials, employees, and volunteers. Any insurance or self-insurance maintained by the City, its officers, officials, employees, or volunteers shall be excess of the Contractor's insurance and shall not contribute with it. (3) Notice of Cancellation. Each insurance policy required above shall provide that coverage shall not be canceled, except with notice to the City. (4) Waiver of Subrogation. Contractor hereby grants to City a waiver of any right to subrogation that any insurer of said Contractor may acquire against the City by virtue of the payment of any loss under such insurance. Contractor agrees to obtain any endorsement that may be necessary to affect this waiver of subrogation, but this provision applies regardless of whether or not the City has received a waiver of subrogation endorsement from the insurer. (5) Self -Insured Retentions. Self -insured retentions must be declared to and approved by the City. The City may require the Contractor to purchase coverage with a lower retention or provide proof of ability to pay losses and related investigations, claim administration, and defense expenses within the retention. The policy language shall provide, or be endorsed to provide, that the self - insured retention may be satisfied by either the named insured or City. (6) Acceptability of Insurers. Insurance is to be placed with insurers authorized to conduct business in the state with a current A.M. Best's rating of no less than AXII, unless otherwise acceptable to the City. (7) Verification of Coverage. Contractor shall furnish the City with original Certificates of Insurance including all required amendatory endorsements (or copies of the applicable policy language effecting coverage requiredby this clause) and a copy of the Declarations and Endorsement Page of the CGL policy listing allpolicy endorsements to City before work begins. However, failure to obtain the required documents prior to the work beginning shall not waive the Contractor's obligation to provide them. The City reserves the right to require complete, certified copies of all required insurance policies,including endorsements required by these specifications, at any time. (8) Subcontractors. Contractor shall require and verify that all subcontractors maintain insurance meeting all the requirements stated herein, and Contractor shall ensure that City is an additional insured on insurance required from subcontractors. Page 4 of 9 #356334v1 (9) Special Risks or Circumstances. City reserves the right to modify these requirements, including limits, based on the nature of therisk, prior experience, insurer, coverage, or other special circumstances. 7. INDEMNIFICATION Contractor agrees to defend, and shall indemnify and hold harmless the City, its officers, agents, employees, contractors, special counsel, and representatives from liability: (1) for personal injury, damages, just compensation, restitution, judicial or equitable relief arising out of claims for personal injury, including death, and claims for property damage, which may arise from the negligent operations of the Contractor, its subcontractors, agents, employees, or other persons acting on its behalf which relates to the services described in section 1 of this Agreement; and (2) from any claim that personal injury, damages, just compensation, restitution, judicial or equitable relief is due by reason of the terms of or effects arising from this Agreement. This indemnity and hold harmless agreement applies to all claims for damages, just compensation, restitution, judicial or equitable relief suffered, or alleged to have been suffered, by reason of the events referred to in this Section or by reason of the terms of, or effects, arising from this Agreement. The Contractor further agrees to indemnify, hold harmless, and pay all costs for the defense of the City, including fees and costs for special counsel to be selected by the City, regarding any action by a third party challenging the validity of this Agreement, or asserting that personal injury, damages, just compensation, restitution, judicial or equitable relief due to personal or property rights arises by reason of the terms of, or effects arising from this Agreement. City may make all reasonable decisions with respect to its representation in any legal proceeding. Notwithstanding the foregoing, to the extent Contractor's services are subject to Civil Code Section 2782.8, the above indemnity shall be limited, to the extent required by Civil Code Section 2782.8, to claims that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the Contractor. 8. INTELLECTUAL PROPERTY INDEMNIFICATION Contractor shall defend and indemnify the City, its officers, agents, representatives, and employees against any and all liability, including costs, for infringement of any United States' letters patent, trademark, or copyright infringement, including costs, contained in the work product or documents provided by Contractor to the City pursuant to this Agreement. Contractor shall keep records and invoices in connection with the work to be performed under this Agreement. Contractor shall maintain complete and accurate records with respect to the costs incurred under this Agreement and any services, expenditures, and disbursements charged to the City for a minimum period of three (3) years, or for any longer period required by law, from the date of final payment to Contractor under this Agreement. All such records and invoices shall be clearly identifiable. Contractor shall allow a representative of the City to examine, audit, and make transcripts or copies of such records and any other documents created pursuant to this Agreement during regular business hours. Contractor shall allow inspection of all work, data, documents, proceedings, and activities related to this Agreement for a period of three (3) years from the date of final payment to Contractor under this Agreement. Page 5 of 9 #356334v1 10. CONFIDENTIALITY If Contractor receives from the City information which due to the nature of such information is reasonably understood to be confidential and/or proprietary, Contractor agrees that it shall not use or disclose such information except in the performance of this Agreement, and further agrees to exercise the same degree of care it uses to protect its own information of like importance, but in no event less than reasonable care. "Confidential Information" shall include all nonpublic information. Confidential information includes not only written information, but also information transferred orally, visually, electronically, or by other means. Confidential information disclosed to either party by any subsidiary and/or agent of the other party is covered by this Agreement. The foregoing obligations of non-use and nondisclosure shall not apply to any information that (a) has been disclosed in publicly available sources; (b) is, through no fault of the Contractor disclosed in a publicly available source; (c) is in rightful possession of the Contractor without an obligation of confidentiality; (d) is required to be disclosed by operation of law; or (e) is independently developed by the Contractor without reference to information disclosed by the City. 11. CONFLICT OF INTEREST CLAUSE Contractor covenants that it presently has no interests and shall not have interests, direct or indirect, which would conflict in any manner with performance of services specified under this Agreement. 12. NON-DISCRIMINATION Contractor shall not discriminate because of race, color, creed, religion, sex, marital status, sexual orientation, gender identity, gender expression, gender, medical conditions, genetic information, or military and veteran status, age, national origin, ancestry, or disability, as defined and prohibited by applicable law, in the recruitment, selection, teaching, training, utilization, promotion, termination or other employment related activities or any services provided under this Agreement. Contractor affirms that it is an equal opportunity employer and shall comply with all applicable federal, state and local laws and regulations. 13. EXCLUSIVITY AND AMENDMENT This Agreement represents the complete and exclusive statement between the City and Contractor, and supersedes any and all other agreements, oral or written, between the parties. In the event of a conflict between the terms of this Agreement and any attachments hereto, the terms of this Agreement shall prevail. This Agreement may not be modified except by written instrument signed by the City and by an authorized representative of Contractor. The parties agree that any terms or conditions of any purchase order or other instrument that are inconsistent with, or in addition to, the terms and conditions hereof, shall not bind or obligate Contractor or the City. Each party to this Agreement acknowledges that no representations, inducements, promises or agreements, orally or otherwise, have been made by any party, or anyone acting on behalf of any party, which is not embodied herein. Page 6 of 9 #356334vl 14. ASSIGNMENT Inasmuch as this Agreement is intended to secure the specialized services of Contractor, Contractor may not assign, transfer, delegate, or subcontract any interest herein without the prior written consent of the City and any such assignment, transfer, delegation or subcontract without the City's prior written consent shall be considered null and void. Nothing in this Agreement shall be construed to limit the City's ability to have any of the services which are the subject to this Agreement performed by City personnel or by other Contractors retained by City. 15. TERMINATION This Agreement may be terminated by the City upon thirty (30) days written notice of termination. In such event, Contractor shall be entitled to receive and the City shall pay Contractor compensation for all services performed by Contractor prior to receipt of such notice of termination, subject to the following conditions: a. As a condition of such payment, the Executive Director may require Contractor to deliver to the City all work product(s) completed as of such date, and in such case such work product shall be the property of the City unless prohibited by law, and. Contractor consents to the City's use thereof for such purposes as the City deems appropriate. b. Payment need not be made for work which fails to meet the standard of performance specified in the Recitals of this Agreement. 16. WAIVER No waiver of breach, failure of any condition, or any right or remedy contained in or granted by the provisions of this Agreement shall be effective unless it is in writing and signed by the party waiving the breach, failure, right or remedy. No waiver of any breach, failure or right, or remedy shall be deemed a waiver of any other breach, failure, right or remedy, whether or not similar, nor shall any waiver constitute a continuing waiver unless the writing so specifies. 17. JURISDICTION - VENUE This Agreement has been executed and delivered in the State of California and the validity, interpretation, performance, and enforcement of any of the clauses of this Agreement shall be determined and governed by the laws of the State of California. Both parties further agree that Orange County, California, shall be the venue for any action or proceeding that may be brought or arise out of, in connection with or by reason of this Agreement. 18. PROFESSIONAL LICENSES Contractor shall, throughout the term of this Agreement, maintain all necessary licenses, permits, approvals, waivers, and exemptions necessary for the provision of the services hereunder and required by the laws and regulations of the United States, the State of California, the City of Santa Ana and all other governmental agencies. Contractor shall notify the City immediately and Page 7 of 9 9356334vl in writing of its inability to obtain or maintain such permits, licenses, approvals, waivers, and exemptions. Said inability shall be cause for termination of this Agreement. 19. NOTICE Any notice, tender, demand, delivery, or other communication pursuant to this Agreement shall be in writing and shall be deemed to be properly given if delivered in person or mailed by first class or certified mail, postage prepaid, or sent by fax or other telegraphic communication in the manner provided in this Section, to the following persons: To City: City Clerk City of Santa Ana 20 Civic Center Plaza (M-30) P.O. Box 1988 Santa Ana, CA 92702-1988 Fax: 714- 647-6956 With courtesy copies to: Executive Director, Public Works Agency City of Santa Ana. 20 Civic Center Plaza (M-21) P.O. Box 1988 Santa Ana, California 92702 To Contractor: Coastline Equipment Attn: Branch Manager P.O. Box 22732 Long Beach, CA 90801-5732 A party may change its address by giving notice in writing to the other party. Thereafter, any communication shall be addressed and transmitted to the new address. If sent by mail, communication shall be effective or deemed to have been given three (3) days after it has been deposited in the United States mail, duly registered or certified, with postage prepaid, and addressed as set forth above. If sent by fax, communication shall be effective or deemed to have been given twenty-four (24) hours after the time set forth on the transmission report issued by the transmitting facsimile machine, addressed as set forth above. For purposes of calculating these time frames, weekends, federal, state, County or City holidays shall be excluded. 20. MISCELLANEOUS PROVISIONS a. Each undersigned represents and warrants that its signature herein below has the power, authority and right to bind their respective parties to each of the terms of Page 8 of 9 #356334v1 this Agreement, and shall indemnify City My, including reasonable costs and attomey's fees, for any injuries or damages to City in the event that such authority or power is not, in fact, held by the signatory or is withdrawn. b. All Exhibits referenced herein and attached hereto shall be Incorporated as if fully set forth in the body of this Agreement. IN WITNESS WHEREOF, the parties hereto have executed this Agreement the date and year first above written. APPROVED AS TO FORM: SONIA R. CARVALHO City Attorney By: Bran Salvationa Deputy City Attorney RECOMMENDED FOR APPROVAL: Nabil Saba, P.E. Executive Director Public Works Agency CITY OF SANTA ANA z9ao.:)a 1� Alvaro Nunez Acting City Manager CONTRACTOR: By wA 51Ac fly T e: r ,eti / "Jer #356334v1 Page 9 of 9 EXHIBIT A SCOPE OF SERVICES CITY OF SANTA ANA EXHIBIT I SCOPE OF SERVICES Contractor shall perform services as set forth below. SERVICE A. Contractor(s) shall provide all parts, labor, non -consumable material and equipment necessary to perform automotive repairs on both domestic and foreign vehicles as indicated in Exhibit III. Typical repairs and services include, but are not limited to: 1. Vehicle, motorcycle, and truck diagnostic testing 2. Smog testing/opacity testing 3. Alignment/front end repairs 4. Alternative fuel repair/tank certification 5. Hydraulic systems and controls 6. Diagnosis and repairs powertrain/off road equipment 7. Electrical and electronic repairs 8. Miscellaneous engine work 9. Diagnosis & repairs of complete powertrain 10. Powertrain and P.T.O. general repair 11. Muffler/exhaust repairs 12.Other various repair and replacement of parts for cars, trucks, electric vehicles & motorcycles B. Contractor must provide written estimates for repairs needed and obtain City approval prior to performing work on any vehicles. The City shall not pay for any unauthorized repairs. If additional work is requested after initial repairs have been made, the Contractor must contact appraiser and the City for further approval. All old parts must be returned to the City. C. The Contractor must pick-up and/or deliver vehicles AT NO CHARGE TO THE CITY. D. ALL REPAIRS MADE UNDER THIS CONTRACT WILL BE COMPLETED NO MORE THAN TEN (10) WORKING DAYS FROM THE DATE THE CITY APPROVED THE REPAIR. II. SECURITY Contractor shall be held responsible for any damage or theft to city vehicles while on the vendor's premises/possession. Should such incidents occur, the vendor would be required to reimburse the City and/or repair the damage at no cost to the City. III. PAYMENT The successful vendor(s) shall submit itemized invoices that reflect unit prices and/or percentage discounts as outlined on the bid schedule. City of Santa Ana RFP 23-098 Page 18 of 35 CITY OF SANTA ANA The Following must be written on all invoices submitted for payment: A. Vehicle plate number; B. Number of hours (per/man) utilized in performing repairs; C. Complete list of parts used with list price, the discount as shown on Cost Proposal, and resulting net price; D. Name of City staff requesting service: E. Date service request was made by City; F. Description of parts/service; and G. Date vehicle was delivered to City. City of Santa Ana RFP 23-098 Page 19 of 35 EXHIBIT B COST PROPOSAL Pricing Proposal: Labor Rates: -Shop hourly labor rate is $175. -Field hourly labor rate is $205. Parts Pricing: -Parts markup on manufacturer list price. Hauling: -Equipment hauling hourly rate is $155. 54481 CERTIFICATE OF LIABILITY INSURANCE Acevedo Date: 20. COVERAGE _ r r INSURER A: Sentry Select Insurance Company 21180 INSURED INSURER B Bragg Investment Company Inc DBA Coastline Equipment INSURER C: PO Box 22732 Long Beach, CA 90601-5732 INSURER D INSURER E : INSURER F : COVERAGES CERTIFICATE NUMBER: 872689 REVISION NUMBER: 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. INSR LTR TYPE OF INSURANCE ADDL INSVO SUBRR W POLICY NUMBER POLICY EFF MM/DD POLICY UP MM/DO LIMITS X COMMERCIAL GENERAL LIABILITY EACH OCCURRENCE $1,000,000 CLAIMS -MADE ❑X OCCUR DAMAGEToPREMISES RENTEDEaoxurrence $100,000 MED EXP (Any one person) $ 5,00 A X X 2425473004 10/01/2023 10/0112024 PERSONAL &ADV INJURY $1,000,000 AGGREGATE LIMIT APPLIES PER: GENERALAGGREGATE $3.000,000 GEN'L X POLICY JECOT LOC PRODUCTS-COMP/OP AGO $2.000,000 $ OTHER I I AUTOMOBILE LIABILITY COMBINED SINGLE LIMIT Ea accident) $ 1.000.000 X BODILY INJURY (Per person) $ ANY AUTO °' A TU OS ONLY A QSULED 2426473016 10/0112023 10/01/2024 BODILY INJURY (Per accident) $ HIRED NON -OWNED AUTOS ONLY AUTOS ONLY PROPERTY DAMAGE Per accident $ X UMBRELLA LIAR X OCCUR EACH OCCURRENCE $ 10.000,000 A EXCESS LIAB CLAIMS -MADE 2425473006 10/01/2023 10/012024 X AGGREGATE $ 30,000,000 OEO I I RETENTION$ PRODUCTS-COMP/OP AGO 530,000,000 WORKERS COMPENSATION PER ANDEMPLOYERS'LIABILITY YIN STATUTE E.L. EACH ACCIDENT $ ANY PROPRIETOR/PARTNERIEXECUTIVE❑ NIA OFFICERIMEMBER EXCLUDED? E.L. DISEASE - EA EMPLOYEE $ (Mandatory in NH) If yes, describe under DESCRIPTION OF OPERATIONS be. E.L. DISEASE -POLICY LIMIT $ Employee Benefits Occurrence Limit $ 500,000 Emom& Omissions Annual Aggregate Limit $1,000,000 A ERRORS & OMISSIONS 2425473008 10/0112023 10/01/2024 Deductible $ 1,000 All Other Errors & Occurrence Limit $ 250,000 Omissions Annual Aggregate Limit $ 500,000 Deductible 1,000 DESCRIPTION OF OPERATIONS I LOCATIONS / VEHICLES (ACORD 101. Additional Remarks Schedule, may be attached if more space is required) Refer to attached CERTIFICATE HOLDER CANCELLATION City of Santa Ana SHOULD ANY OF THE ABOVE DE Risk Management Division THE EXPIRATION DATE THEI 20 Civic Center Piz Rm 429 ACCORDANCE WITH THE POLIC' Santa Ana, CA 92701AD58 AUTHORIZED REPRESENTATIVE ACORD 25 (2016/03) Page 1 of 2 ©1988.2015 ACI 2425473 The ACORD name and logo are registered marks of ACORD Sentry Select Insurance Company 1 00001 0000000000 24051 0 N b621cld5-clea4l9rr 052-glbd76c3lb9f ,s�yy=+� IUBAI R OY$ebern IJN9loM11 H - �e REVI:wilio 1&pr.A°ppp�RCfV®Sr. ®' think ManagementISpectall II AGENCY CUSTOMER ID: XXXXXX5032 ACOK" ilh� LOC #: — ADDITIONAL REMARKS SCHEDULE Page 2 of 2 AGENCY Bruce Johansen NAMEDINSURED Bragg Investment Company Inc DBA Coastline Equipment POLICY NUMBER 2425473004 CARRIER Sentry Select Insurance Company NAIC CODE 21190 EFFECTIVE DATE: 10I012023 ADDITIONAL REMARKS FORM IS A SCHEDULE TO ACORD FORM, General Liability City of Santa Ana, officers, agents, employees an volunteers are named as additionally insured on this policy pursuant to written contract, agreement or memorandum of understanding. Such insurance as is afforded by this policy shall be primary and any insurance carried by City shall be excess and noncontributory. GL coverage provided is primary and non-contributory per the terms of endorsement CG 20 01. Commercial Excess Umbrella liability coverage follows form over general liability, automobile liability and employers liability policies. See attached dealers coverage form CM 88 00. Waiver of Subrogation is included. ACORD 101 (2008/01) © 2008 ACORD Cl 2425473 The ACORD name and logo are registered marks of ACORD Sentry Select Insurance Company Risk memgemmtDMeivn " REVIEWED&APPROVED Or. Ill &a44 Risk Management Specialist '. UL/LU/CUL4 AC-"J?CERTIFICATE OF LIABILITY INSURANCE 002212010120214DDmvvv 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. 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 off tge 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). PRODUCER CONTACT Sentry Customer Service Sentry Insurance 1800 North Point Drive PHONE FA% A/C No E#: 800-073-fi879 AIC No: 800-514-7191 EMAIL ADDRESS: business mducts direct sen .mm Stevens Paint, WI 54481 INSURER(S) AFFORDING COVERAGE NAIL # INSURER A: Sentry Select Insurance Company 21180 INSURED INSURER B: Pegg Investment Company Inc DBA Coastline Equipment PO Box 22732 INSURE0. C: INSURER D: Long Beach, CA 90BOI5732 NSURER E INSURER F COVERAGES CERTIFICATE NUMBER: 872689 REVISION NUMBER: 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, INSR LTR TYPE OF INSURANCE ADOL INSR SUBR WVD POLICY NUMBER POLICY EFF MMDD POLICY EXP MM/DD LIMITS CLAIM&MADE OCCUR EACH OCCURRENCE $ DAMAGETO RENTED PREMISES Ea owurrence $ MED EXP (Any one person) $ PERSONALBADVIWURY $ GEN'L AGGREGATE LIMIT APPLIES PER: POLICY JECOT D LOC OTHER: GENERAL AGGREGATE $ PRODUCTS-COMP/OP AGG $ $ A AUTOMOBILE LIABILITY ANY AUTO OWNED r7 ASCHEDULED AUTOS ONLY UTOS HIRED NON -OWNED AUTOS ONLY AUTOS ONLY 2425473005 10/01/2023 10/01/2024 CEOMBINED accident SINGLE LIMB a $ 1,000,000 X BODILY INJURY (Per person) $ BODILY INJURY (Per accident) $ PPeROPERTY DAMAGE race dent $ UMBRELLA LIAB EXCESS LIAB OCCUR CLAIMS -MADE EACH OCCURRENCE S AGGREGATE $ DED I I RETENTION $ S WORKERS COMPENSATION AND EMPLOYERS' LIABILITY YIN ANY PROPRIETORIPARTNER/EXECUTIVE❑ OFFICERIMEMBER EXCLUDED? (Mandatory, In Ni If DESCRIKION antler DESCRIPTION OF OPERATIONS below NIA PER OTH- STATUTE ER E.L. EACH ACCIDENT $ E.L. DISEASE -EA EMPLOYEE $ E.L. DISEASE -POLICY LIMIT S A POLLUTION LIABILITY X CLAIMS -MADE OCCUR NIA 2425473009 10/01/2023 10/01/2024 AGGREGATE LIMIT S 1,000.000 POLLUTION INCIDENT DMIT $1,000.000 CLEANUP COSTS -COVERED LOCATION LIMIT $100,000 DESCRIPTION OF OPERATIONS I LOCATIONS I VEHICLES (ACORD 101, Additional Remarks Schedule, may be attached If more space is required) City of Santa Ana Risk Management Division 20 Civic Center PR Rm 429 Santa Ana, CA 92701AO58 AUTHORIZED REPRESENTATIVE f ry�y+-'aide ruta[M<OO�emQ¢utYMleD or. _ '.,. REVIEWED ✓S APPROVED Sr. `I & `® RYsk Management Specialist The ACORD name and logo are registered marks of ACORD Sentry Select Insurance Company 1 00001 0000000000 24051 0 N ecal4f2d-8e39-4001-a3f2Aa57fd431c01 AGENCY CUSTOMER ID: xx'O LOC #: — ADDITIONAL REMARKS SCHEDULE page 2 of 2 AGENCY Bruce Johansen NAMEDINSURED Bragg Investment Company Inc DBA Coastline Equipment POLICY NUMBER 2425473005 CARRIER Sentry Select Insurance Company NAIC CODE 21180 EFFECTIVE DATE: 10/0112023 ADDITIONAL REMARKS ADDITIONAL REMARKS FORM IS A SCHEDULE TO ACORD FORM, ACORD 101 (2008/01) © 2008 ACORD Ci 2425473 The ACORD name and logo are registered marks of ACORD Sentry Select Insurance Company Ride Management ➢Melon ��j� REVIEWED&APPROVmBY: A, fiA,,,,44 Risk Management Specialist POLICY NUMBER: 2425473004 COMMERCIAL GENERAL LIABILITY CG 20 10 04 13 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. ADDITIONAL INSURED - OWNERS, LESSEES OR CONTRACTORS - SCHEDULED PERSON OR ORGANIZATION This endorsement modifies insurance provided under the following: COMMERCIAL GENERAL LIABILITY COVERAGE PART SCHEDULE Name Of Additional Insured Person(s) Or Organization(s) Location(s) Of Covered Operations City of Santa Ana All Locations Risk Management Division Description: Service work performed Information required to complete this Schedule, if not shown above, will be shown in the Declarations. A. Section II - Who Is An Insured is amended to include as an additional insured the person(s) or organization(s) shown in the Schedule, but only with respect to liability for "bodily injury", "property damage" or "personal and advertising injury" caused, in whole or in part, by: 1. Your acts or omissions; or 2. The acts or omissions of those acting on your behalf; in the performance of your ongoing operations for the additional insured(s) at the location(s) designated above. However: 1. The insurance afforded to such additional insured only applies to the extent permitted by law; and 2. 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. Change effective 02/20/2024 CG 20 10 0413 2425473 Sentry Select Insurance Company 1 00001 0000000000 24051 0 N B. With respect to the insurance afforded to these additional insureds, the following additional exclusions apply: This insurance does not apply to 'bodily injury" or "property damage" occurring after: 1. All work, including materials, parts or equipment furnished in connection with such work, on the project (other than service, maintenance or repairs) to be performed by or on behalf of the additional insured(s) at the location of the covered operations has been completed; or 2. That portion of 'your work" out of which the injury or damage arises has been put to its intended use by any person or organization other than another contractor or subcontractor engaged in performing operations for a principal as a part of the same project. © Insurance Services Office, Inc., 2012 96ce8 d<7e6-495d-83ff-ad65ddd8344B Risk Mnugnnmt Division RENEWED&APPRO mElr. ® Risk Management SpeaAist C. With respect to the insurance afforded to these additional insureds, the following is added to Section III - Limits Of Insurance: 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: 1. Required by the contract or agreement; or 2. Available under the applicable Limits of Insurance shown in the Declarations; whichever is less. This endorsement shall not increase the applicable Limits of Insurance shown in the Declarations. Page 2 of 2 © Insurance Services Office, Inc., 2012 2425473 Sentry Select Insurance Company a. . �. ��,•Hq Risk 1&v�EkM DIMsM Risk Management Speaalist or UZ/ZU/ZU24 POLICY NUMBER: 2425473004 COMMERCIAL GENERAL LIABILITY CG 24 04 05 09 WAIVER OF TRANSFER OF RIGHTS OF RECOVERY AGAINST OTHERS TO US This endorsement modifies insurance provided under the following: COMMERCIAL GENERAL LIABILITY COVERAGE PART PRODUCTS/COMPLETED OPERATIONS LIABILITY COVERAGE PART SCHEDULE Name Of Person Or Organization: City of Santa Ana Risk Management Division Information required to complete this Schedule, if not shown above, will be shown in the Declarations. The following is added to Paragraph 8. Transfer Of Rights Of Recovery Against Others To Us of Section IV - Conditions: We waive any right of recovery we may have against the person or organization shown in the Schedule above because of payments we make for injury or damage arising out of your ongoing operations or "your work" done under a contract with that person or organization and included in the "products -completed operations hazard". This waiver applies only to the person or organization shown in the Schedule above. Change effective 02/20/2024 CG 24 04 05 09 2425473 Sentry Select Insurance Company 00001 0000000000 24051 0 N © Insurance Services Office, Inc., 2008 tl 8e26&20a84e76-a5fa-60tlr6bda4071 a� w.kMsv�gaMnkSNWlorr R=MD 6 /NRRov®Rr. �" Risk Management Specialist IL 70 58 02 14 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. NOTICE OF CANCELLATION - CERTIFICATE HOLDERS This endorsement modifies insurance provided under the following: BUSINESSOWNERS COVERAGE FORM COMMERCIAL AUTOMOBILE COVERAGE PARTS COMMERCIAL PROPERTY COVERAGE PART CRIME AND FIDELITY COVERAGE PART COMMERCIAL INLAND MARINE COVERAGE PART COMMERCIAL GENERAL LIABILITY COVERAGE PARTS COMMERCIAL EXCESS/UMBRELLA LIABILITY COVERAGE FORM EMPLOYMENT RELATED PRACTICES LIABILITY POLLUTION LIABILITY COVERAGE ERRORS AND OMISSIONS COVERAGE FORM In the event we cancel this policy, we shall endeavor to also mail to the person(s) or organization(s) listed in the Schedule for this endorsement advance written notice of cancellation. This notification of cancellation of the policy is intended as a courtesy only. Our failure to provide such notification to the person(s) or organization(s) shown in the Schedule will not extend any policy cancellation date nor impact or negate any cancellation of the policy. This endorsement does not entitle the person(s) or organization(s) listed or described in the Schedule below to any benefit, rights or protection under this policy. Failure by us to provide this notice of cancellation to the person(s) or organization(s) listed or described in the Schedule below will not impose liability of any kind upon us. Any of these provisions that conflict with a law that controls the notice of cancellation of the insurance in this endorsement is changed by this statement to comply with the law. Schedule Person(s) or Organization(s) including mailing address: City of Santa Ana Risk Management Division 20 Civic Center Plz Rm 429 Santa Ana, CA 927014058 All other terms and conditions of this policy remain unchanged. Change effective 02/20/2024 IL 70 58 02 14 2425473 Sentry Select Insurance Company 1 00001 0000000000 24051 0 N addc7ad4a140-4cO5-bddc-d3eb0a6d6c73 -"`;sRlak MwagnnattDivislnn a,�� RenEv+m&/iPPRW®er. ® Risk Management Speaalist POLICY NUMBER: 2425473016 COMMERCIAL INLAND MARINE CM88000115 DEALERS 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 policy, 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. Other words and phrases that appear in quotation marks have special meaning. Refer to Section F. - Definitions. A. Coverage 2. Property Not Covered We will pay for direct physical loss of or damage Covered Property does not include: to Covered Property from any of the Covered a. Camping or travel trailers; automobiles, Causes of Loss. motor trucks, motorcycles (including trail 1. Covered Property, as used in this Coverage bikes), motor homes, or any other vehicles, Form, means: subject to motor vehicle registration for a. Your business personal property, including road use. This provision does not apply to: property you lease or rent from others and (1) Trailers other than camping or travel used in your business and property held trailers; on consignment; (2) Trailers held for sale which are titled or b. Property of others, similar to property you licensed in your name; hold for sale in the normal course of your (3) "Mobile equipment"; business, while in your care, custody or (4) Vehicles you own which are not titled or control; licensed in your name and not used in c. Property of others not described in a. or b. your business; or above, in your care, custody or control for (5) Vehicles, motor homes, or camping and service, repair, storage, appraisal, testing, travel trailers belonging to others while customer demonstration, launching or in your care, custody or control for hauling out; servicing, repair or storage. d. "Improvements and betterments" you b. Trailers, other than camping or travel make to a building you do not own that is trailers, which are titled or licensed in your listed in the Declarations; name or used in your business. This e. Data processing equipment; provision does not apply to: f. Valuable papers and 'electronic media; (1) "Mobile equipment"; g. Fine arts; (2) Trailers held for sale which are titled or licensed in your name; h. The following property at a building rented (3) Trailers you lease or rent to others or leased to you if you have a contractual which are used solely to provide responsibility to pay for repair or mobility to "mobile equipment" you rent replacement after damage by a Covered or lease to others; or Cause of Loss: (4) Trailers primarily designed for off road (1) Building glass; use and for transporting agricultural (2) Outdoor fixtures; and commodities including hay, grain or (3) Heating or air conditioning systems that feed. service only the building leased to you; c. Aircraft and aircraft parts or related and equipment, including, but not limited to "unmanned aircraft" and its I. Outdoor fixtures that you own at a communication links and components that premises listed in the Declarations, if they control the "unmanned aircraft". are not covered by any other coverage in a policy issued by us. t WdtMmvmesl.DMswn REVIEWED&APPR maY. `��Illlr1' A4 ju kavota ®' Ruk Manage,nmtS edkist CM 88 00 01 15 Includes copyrighted material of Insurance Services Office, Inc. P 2425473 with its permission. Sentry Select Insurance Company 00007 0000000000 23265 0 N fe6feab7-51ga4fOb-899e-98d856985797 d. Watercraft which is rented to others or which is used in your operations for service or repair calls or to retrieve or tow customers' watercraft, unless specifically described in the Rental Boat Schedule or Work Boat Schedule sections of the Declarations. e. Any personal property used in or in preparation or practice for any organized racing, speed competition or stunting activity. f. Any property insured against any hazard under the Floorplan Insurance Program or other insurance program obtained by or provided through a manufacturer or distributor of such property, or a creditor of yours, on such property. This provision does not apply: (1) To parts and accessories which have been added to Covered Property unless there is other insurance which insures your interest in these parts and accessories. (2) To loss or damage from a cause of loss excluded under the floorplan or other insurance, but which is a Covered Cause of Loss under this insurance. When you are not insured under the insurance described above or when the insurance described above does not apply to your interest in the property this exception applies only to the extent of your interest in the property excluding the floorplan deductible. g. Covered Property you lease or rent to your customer under a "lease agreement". This provision applies only: (1) While the property is not at a building listed in the Declarations; and (2) If the customer has elected to purchase the loss or damage waiver provided in the lease or rental agreement. However, if you lease or rent Covered Property to your customer under a "lease agreement" and the "lessee" elects to purchase a physical damage waiver, the property is still considered Covered Property with respect to the Additional Coverage - False Pretense. h. Accounts, bills, deeds, evidences of debt, money, notes and securities. Lottery tickets held for sale are not securities. i. Property sold, including property sold under a deferred payment sales agreement, after it has left your custody or the custody of carriers for hire when you are responsible for delivery. j. Tools owned by your employees, including tools you lease or rent from them, except as covered by the Employee Tools Coverage Extension. k. Animals. I. Booms in excess of 40 feet in length (including cables, pulleys, buckets, claws, and similar attachments) when attached to any derrick, crane, dragline, shovel or similar equipment unless loss or damage is caused by one of the "specified causes of loss". This provision does not apply to equipment while held for sale and located at a building listed in the Declarations. m. Trees, shrubs or plants while outside of a building, except as covered by the Trees, Shrubs, Lawns or Growing Plants Coverage Extension. This provision does not apply to your stock of trees, shrubs, plants or other nursery stock held for sale at a premises listed in the Declarations, but only for loss or damage caused by one of the "specified causes of loss". n. Personal effects owned by you, your officers, partners or members, your managers or your employees, except as covered by the Personal Effects and Property of Others Coverage Extension. o. Property of others in your care, custody or control, except as covered by the Personal Effects and Property of Others Coverage Extension. This provision does not apply to property covered by Section AA.a., A.1.b. or A.1.c, of this Coverage Form. 3. Covered Causes of Loss Covered Causes of Loss means Direct Physical Loss or Damage to Covered Property except those causes of loss listed in the Exclusions. 4. Additional Coverages a. Collapse The coverage provided under this Additional Coverage - Collapse applies only to an abrupt collapse as described and limited in Paragraphs (1) through (3). (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. Page 2 of 14 Includes copyrighted material of Insurance Services Office, 2425473 with its permission. Sentry Select Insurance Company .,s,�� Ad RIakeMnugemmtDlvdm RFVe D&APPRov®Sr. Inc. Risk Management Specialist (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 contains Covered Property insured under this Coverage Form, 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: (1) A cause of loss listed in Paragraph (a) or (b); (ii) One or more of the following causes of loss: fire; lightning; windstorm; hail; explosion; smoke; aircraft; vehicles; riot; civil commotion; vandalism; leakage from fire extinguishing equipment; sinkhole collapse; volcanic action; breakage of building glass; falling objects; weight of snow, ice or sleet; water damage; earthquake; all only as insured against in this Coverage Form; (iii) Weight of people or personal property; or (iv) Weight of rain that collects on a roof. (3) This Additional Coverage - Collapse will not increase the Limits of Insurance provided in this Coverage Form. b. "False Pretense" (1) After the first installment payment has been made; (2) Due solely to an insufficient funds check; (3) Due to incorrect information on a credit application or rental or lease agreement other than false or forged name, social security number, or signature; (4) As the result of your contractual obligation to become liable in the event of default by the purchaser or lessee; (5) Due to non-payment, for any reason, of any credit you extend; (6) Due to bankruptcy; (7) Unless, prior to the release of the property to the other party, you made a reasonable effort to determine the identity of the other party, and to determine that the transaction was a legitimate business transaction; (8) Due solely to an undisclosed lien. We will deduct the actual value of any property or cash down payment delivered to you in full or partial payment for Covered Property when determining the amount of loss under this Additional Coverage. But we will not deduct the value of property you receive from a person, group of people or organization who did not have legal title to or ownership of that property. The most we will pay for all loss resulting from "false pretense" due to the actions of any one individual, group of individuals or organization during the policy period is the False Pretense limit shown in the Declarations. c. Accounts Receivable We will pay for the following after your records of accounts receivable are damaged by a Covered Cause of Loss: (1) Amounts due from your customers that you are unable to collect; (2) Interest charges on any loan required to offset amounts you are unable to collect pending our payment of those amounts; (3) Collection expenses in excess of your normal collection expenses that are made necessary by the loss or damage; and We will pay for loss resulting from "false (4) Other reasonable expenses you incur to pretense". reestablish your records of accounts This Additional Coverage does not apply to receivable. loss: wdf DIMswf AlEVIEwm 6 APraovEo av: CM 88 00 01 15 Includes copyrighted material of Insurance Services Office, Inc. reek management spena tst 2425473 with its permission. Sentry Select Insurance Company 00007 O000000000 23265 0 N fe6feab7519a4fOb899e 98d856985797 The most we will pay for loss or damage to records of accounts receivable in an occurrence at a building listed in the Declarations is $5,000. 5. Coverage Extensions a. Debris Removal (1) Subject to Paragraphs (2), (3) and (4), we will pay your expenses to remove debris of Covered Property and other debris that is on the described building, 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 buildings 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 Trees, Shrubs, Lawns and Growing Plants Coverage Extension; (d) Remove property of others of a type that would not be Covered Property under this Coverage Form; (e) Remove deposits of mud or earth from the grounds of the described building; (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 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 (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 (4)(a) and/or (4)(b) applies, 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) Page 4 of 14 Includes copyrighted material of Insurance Services Office, 2425473 with its permission. Sentry Select Insurance Company Risk MoagmentDiWIon r&AI D&APPRt.N®Br 01 ®' AquA� M Risk Management SpedAut Inc. 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 $30,500; $4,500 of the debris removal expense is not covered. b. Pollutant Clean Up and Removal Cause of Loss that occurs during the policy period. This Clean Up and Removal Coverage applies only to a building listed in the Declarations or while the "pollutants" are in transit in a vehicle you own, lease, rent or borrow and operated by you, your partners or employees. 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 Coverage Extension 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 under this Coverage Extension for each described building is $10,000 for the sum of all covered expenses arising out of Covered Causes of Loss occurring during each separate 12-month period of this policy. The limit for this Coverage Extension is in addition to the Limit of Insurance. c. Theft Damage to Buildings (1) We will pay for damage caused directly by theft or attempted theft to: (a) That part of any building containing Covered Property; or (b) Equipment within the building used to maintain or service the building; only if you own the building or are legally responsible for the damage. (2) But, we will not pay for damage: (a) Caused by fire; or (b) To glass or lettering or art work on glass. This Coverage Extension is included within the applicable Limit of Insurance. d. Valuable Papers and Records We will pay your costs to research, replace or restore the lost information on lost or damaged valuable papers and records, including those which exist on electronic or magnetic media, for which duplicates do not exist, if direct physical loss or damage results from or is caused by a Covered Cause of Loss. We will pay your expenses to extract The most we will pay under this Coverage "pollutants" from land or water if the Extension is $5,001 discharge, dispersal, seepage, migration, w.k� release or escape of the "pollutants" is REME mar. caused by or results from a Covered ` CM 88 00 01 15 Includes copyrighted material of Insurance Services Office, Inc. Risk Management Spedittist 2425473 with its permission. Sentry Select Insurance Company 00007 0000000000 23265 0 N fe6feab7-519a4fOb-899e-98d856985797 e. Personal Effects and Property of Others You may extend the insurance that applies to your business personal property to cover: (1) Personal effects owned by you, or by your officers, your partners or members, your managers or your employees; (2) Personal property of others, other than personal property of others covered by Sections A.1.a., A.1.b. or A.1.c. of this form, while that property is in your care, custody or control. This provision does not apply to tools owned by your officers, partners or members, your managers or your employees. This coverage is excess over any other insurance on this property except when you are legally liable for the direct physical loss or damage. The most we will pay under this Coverage Extension is $5,000. f. Business Income and Extra Expense (1) We will pay for: (a) The actual loss of business income; and (b) Extra expense You sustain due to the necessary suspension of your operations during the period of restoration. The suspension must be caused by a direct physical loss or damage to property at a premises listed in the Declarations. The loss or damage must be caused by or result from a Covered Cause of Loss. (2) Business Income Loss Determination The amount of the Business Income loss will be determined based on: (a) The Net Income of the business before the direct physical loss or damage occurred; (b) The likely Net Income of the business if no loss occurred; (c) The operating expenses, including payroll expenses, necessary to resume operations with the same quality of service that existed just before the direct physical loss or damage; and (ii) Bills, invoices, and other vouchers; and (iii) Deeds, liens or contracts. (3) Extra Expense Loss Determination The amount of extra expense loss will be determined based on: (a) All expenses that exceed the normal operating expenses that would have been incurred by operations during the period of restoration if no direct physical loss or damage had occurred. We will deduct from the total of such expenses: (i) The salvage value that remains of any property bought for temporary use during the period of restoration once operations are resumed; and (ii) Any extra expense that is paid by other insurance except insurance that is written subject to the same plan, terms, conditions and provisions as this insurance. (b) All necessary expenses that reduce the business income loss that otherwise would have been incurred. (4) 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 a premises listed in the Declarations or elsewhere. (b) Extra expense loss to the extent you can return operations to normal and discontinue such extra expense. (5) The most we will pay for business income and extra expense under this Coverage Extension is $5,000. (6) Insurance under this Extension is excess over any other insurance that applies to business income or extra expense. (7) The following definitions apply to this Coverage Extension: (a) Business income means the: (d) Other relevant sources of information, including: () t Net income net profit or loss before income taxes) that would (1) Your financial records and have been earned or incurred; or accounting procedures; „" cr ZManag�.ent wt liEr. Risst Page 6 of 14 Includes copyrighted material of Insurance Services Office, Inc. 2425473 with its permission. Sentry Select Insurance Company (ii) Continuing normal operating expenses incurred, including payroll. (b) Extra expense means the excess of the total cost incurred during the period of restoration chargeable to your operations over and above the total cost that would normally have been incurred to conduct your operations during the same period if the loss or damage had not occurred. Any salvage of property obtained for temporary use during the period of restoration shall be taken into consideration in the adjustment of a loss. (c) Operations means your business activities at a premises listed in the Declarations. (d) Period of restoration means the period of time from the date of direct physical loss or damage, not limited by the expiration date of the policy to which this Coverage Form is attached, required with the exercise of due diligence to repair, rebuild or replace damaged buildings or personal property. (e) Suspension means: (i) The slowdown or cessation of your business activities; or (ii) That a part or all of the premises is rendered untenantable. g. Defense Costs - Property of Others If direct physical loss or damage from a Covered Cause of Loss occurs to covered property of others in your care, custody or control, we have the right and duty to defend any action or suit arising from the loss or damage. We have no duty to defend any action or suit for loss or damage not covered by this Coverage Form. We may investigate and settle any claim, action or suit, as we consider appropriate. Our duty to defend or settle ends when the Limit of Insurance has been exhausted by payments of policy limits from a single occurrence. h. Preservation of Property We will pay expenses you incur to remove (2) Any other Covered Cause of Loss if you obtain our permission to remove the property prior to moving the property. These expenses will be paid even if there is no direct physical loss or damage to Covered Property. The most we will pay under this Coverage Extension is $10,000. L Employee Tools You may extend the insurance that applies to your business personal property to cover tools owned by your officers, partners or members, your managers or your employees. You may apply up to $5,000 for each building listed in the Declarations. Our payment for loss or damage under this extension will only be for the account of the owner of the property. J. Trees, Shrubs, Lawns and Growing Plants You may extend the insurance provided by this Coverage Form to apply to your trees, shrubs, lawns or growing plants, including debris removal expense, caused by a Covered Cause of Loss at a premises described in the Declarations. The most we will pay for loss or damage under this extension is $5,000; but not more than $750 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. B. Exclusions 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 event 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. Governmental Action Covered Property from a building listed In Seizure or destruction of property by order the Declarations if endangered by the of governmental authority. following causes of loss: (1) Fire, hail or flood; e, RIAMUagmoleotwIOR e+'A@j�& RenelJEl)&APPRmm Br. CM 88 00 01 15 Includes copyrighted material of Insurance Services Office, Inc. Risk Management Speackst 2425473 with its permission. Sentry Select Insurance Company 00007 0000000000 23265 0 N fe6feab7-519aAfOf 899e-98d856985797 But we will pay for loss 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 Coverage Form. This exclusion does not apply to coverage under the "False Pretense" Additional Coverage. b. Nuclear Hazard Nuclear reaction or radiation, or radioactive contamination, however caused. But if nuclear reaction or radiation, or radioactive contamination results in fire, we will pay for the direct loss or damage caused by that fire if the fire would be covered under this Coverage Form. c. 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 using 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. d. 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 an of the above, in Paragraphs (1) through (5), results in fire, explosion or theft, we will pay for the direct loss or damage caused by that fire, explosion or theft if these causes of loss would be covered under this Coverage Form. This exclusion applies only to loss or damage in excess of the applicable Flood Limit of Insurance shown in the Flood Coverage Schedule in the Declarations. However $100,000 is the most we will pay for any one loss for the sum of the following items: • Furniture and Fixtures; • Equipment used in the operation; and • Parts held for sale. e. 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 e.(1) through (4) above, results in fire or explosion, we will pay for the loss or damage caused by that fire or explosion if the fire or explosion would be covered under this Coverage Form. (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 if the breakage or v ` RIAM.W"wortn� covered under '�, Ravi &Apncvmav: Page 8 of 14 Includes copyrighted material of Insurance Services Office, Inca �_— Risk Management Specialist 3 Sentry Select Insurance Company �y, Swith its permission. 2ZzuZ7— Sentry Volcanic action means direct loss or damage resulting from 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 to the described property. This exclusion applies only to loss or damage in excess of the applicable Earthquake Limit of Insurance shown in the Earthquake Coverage Schedule in the Declarations. However $100,000 is the most we will pay for any one loss for the sum of the following items: • Furniture and Fixtures; • Equipment used in the operation; and Parts held for sale. 2. We will not pay for loss or damage caused by or resulting from any of the following: a. Delay, loss of use, loss of market or any other consequential loss. But this exclusion does not apply to loss of use of property of others in your care, custody or control if that loss of use is the result of direct physical loss or damage by a Covered Cause of Loss. b. Unexplained disappearance. c. Shortage found upon taking inventory. d. Dishonest or criminal act (including theft) committed by: (1) You, any of your partners, employees (including temporary employees and leased workers), officers, directors, trustees, or authorized representatives; (2) A manager or a member if you are a limited liability company; or (3) Anyone else with an interest in the property, or their employees (including temporary employees and leased workers) or authorized representatives; (4) Anyone else to whom the property is entrusted for any purpose. This exclusion applies whether or not such persons are acting alone or in collusion with other persons or such acts occur during the hours of employment. This exclusion does not apply to Covered Property that is entrusted to others who are carriers for hire or to acts of destruction by your employees (including temporary employees and leased workers). But theft by employees is not covered. e. Processing or work upon the property. But if processing or work upon the property results in fire or explosion, we will pay for the direct loss or damage caused by that fire or explosion if the fire or explosion would be covered under this Coverage Form. f. 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; creating a short circuit or other electric disturbance within an article covered under this Coverage Form. For the purpose of this exclusion, electrical, magnetic or electromagnetic energy includes, but is not limited to, electrical current, including arcing; electrical charge produced or conducted by a magnetic or electromagnetic field; pulse of electromagnetic energy; electromagnetic waves or microwaves. But if artificially generated electrical magnetic or electromagnetic energy, as described above, results in fire or explosion, we will pay for the direct loss or damage caused by that fire or explosion if the fire or explosion would be covered under this Coverage Form. This exclusion only applies to loss or damage to that article in which the disturbance occurs. g. Voluntary parting with any property by you or anyone entrusted with the property if induced to do so by any fraudulent scheme, trick, device or false pretense. But this exclusion does not apply to coverage under the "False Pretense" Additional Coverage. h. Unauthorized instructions to transfer property to any person or to any place. But this exclusion does not apply to coverage under the "False Pretense" Additional Coverage. i. For cranes or derricks, loss or damage resulting from the weight of a load exceeding the ranictarar1 liftinn nr supporting capaci the operating con( a RkkMvwg p1 or damage. =R CM 88 00 01 15 Includes copyrighted material of Insurance Services Office, 2425473 with its permission. Sentry Select Insurance Company 00007 0000000000 23265 0 N fe&eal,7S19a�fO"99�96tl656965797 RFnsWEo & Araaovm Br Risk Management Specialist This exclusion does not apply if the covered crane or derrick is equipped with a functional recognized overload shutdown device that is properly installed and maintained in strict accordance with the manufacturer's recommendations. j. Neglect of an insured to use all reasonable means to save and preserve property from further damage at and after the time of loss. 3. We will not pay for loss or damage caused by or resulting from any of the following. But if loss or damage by a Covered Cause of Loss results, we will pay for the loss or damage caused by that Covered Cause of Loss. a. Weather conditions. But this exclusion only applies if weather conditions contribute in any way with a cause or event excluded in Paragraph 1. above to produce the loss or damage. b. Acts or decisions, including the failure to act or decide, of any person, group, organization or governmental body. c. 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 wherever located. d. Collapse, including any of the following conditions of property or any part of the property: (1) An abrupt falling down or caving in; (2) Loss of structural integrity, including separation of parts of the property or property in danger of falling down or raving in; or (3) Any cracking, bulging, sagging, bending, leaning, settling, shrinking or expansion as such condition relates to Paragraph (1) or (2). This Exclusion d. does not apply to the extent that coverage is provided under the Additional Coverage - Collapse or to collapse caused by one or more of the following: fire; lightning; windstorm; hail; explosion; smoke; aircraft; vehicles; riot; fire extinguishing equipment; sinkhole collapse; volcanic action; breakage of building glass; falling objects; weight of snow, ice or sleet; water damage; earthquake; weight of people or personal property; weight of rain that collects on a roof. e. Wear and tear, any quality in the property that causes it to damage or destroy itself, hidden or latent defect, gradual deterioration, depreciation; mechanical breakdown; insects, vermin, rodents; corrosion, rust, dampness, cold or heat. C. Limits of Insurance 1. Unless otherwise provided, the most we will pay for loss or damage in any one occurrence is the Covered Property Blanket Limit of Insurance shown in the Declarations. 2. Earth Movement or Volcanic Eruption The Earthquake Per Occurrence Limit shown in the Declarations is the most we will pay for loss or damage caused by earth movement or volcanic eruption in a single occurrence. 3. Water The Flood Limit shown in the Declarations is the most we will pay for all loss or damage caused by water in a single occurrence. However the most we will for any one loss for the insured's furniture, fixtures, and equipment used by the insured is $100,000. This limit is included in the Flood Limit shown in the Declarations; and is not in addition to this limit. 4. The limit of insurance applicable to Accounts Receivable Additional Coverage is in addition to the Limit of Insurance. The limits applicable to Coverage Extensions b., d., e., f., g., h., i., and j. are in addition to the Limit of Insurance. The limits applicable to Coverage Extensions a., d., e., f., h., and j., are the most we will pay in any one occurrence regardless of the number of covered buildings. The limit applicable to Coverage Extension b. is the most we will pay for all expenses arising out of Covered Causes of Loss during the policy period regardless of the number of covered buildings or the number of occurrences. 5. The most we will pay for loss or damage to fine arts is $50,000 per building in any one occurrence. civil commotion; vandalism; leakage from PJdtMnugawttDfuhla. REMEWEo & MGROV®er. A+.� A.Wale Risk Management Specialist Page 10 of 14 Includes copyrighted material of Insurance Services Office, Inc. 2425473 with its permission. Sentry Select Insurance Company D. Deductible We will not pay for loss or damage in any occurrence until the amount of the adjusted loss or damage before applying the applicable Limits of Insurance exceeds the deductible shown in the Declarations. We will then pay the amount of the adjusted loss or damage in excess of the deductible, up to the applicable Limit of Insurance. We may pay all or part of any deductible to settle the loss or damage to Covered Property in your care, custody or control to which this insurance applies. If this occurs, you must reimburse us for all or the portion of the deductible we have paid. 2. Glass Deductible Regardless of the amount of the deductible, the most we will deduct from any loss to covered building glass in any one occurrence is $250. This deductible will not increase the deductible shown in the Declarations. This deductible will be used to satisfy the requirement of the deductible shown in the Declarations. E. Additional Conditions 1. Valuation General Condition F. Valuation in the Commercial Inland Marine Conditions is replaced by the following: The value of Covered Property will be determined at the time of loss or damage. In the event of loss or damage to Covered Property by a Covered Cause of Loss, the value will be the least of the following amounts: a. For loss or damage to your stock of machinery, watercraft, equipment or other property held for sale, or for loss or damage to your stock of property you lease or rent to others, we will not pay more than the smaller of: (1) The actual cash value of the property; (2) Whether or not repairs are made, the repair percentage shown in the Declarations multiplied by the average retail cost in your area for parts plus your labor costs based on your average retail labor rates needed to restore that property to its condition immediately before the loss or damage occurred; or (3) The cost of replacing that property with substantially identical property. b. For sold property, the value of property sold but not delivered will be the smaller of: (1) Your net selling price after all allowances or discounts; or (2) Whether or not repairs are made, the repair percentage shown in the Declarations multiplied by the average retail cost in your area for parts plus your labor costs based on your average retail labor rates needed to restore that property to its condition immediately before the loss or damage occurred. c. For the following types of Covered Property which you own, rent or lease from others for use in your business: (1) Machinery, watercraft, tools and fittings, excluding stock or equipment held for sale, lease or rent; (2) Furniture, fixtures office equipment and office supplies; (3) Patterns, dies, molds and models; (4) Data processing equipment; and (5) Outdoor fixtures; The most we will pay is the smaller of: (1) The cost to repair or restore that property to its condition immediately before the loss or damage occurred; or (2) The cost of replacing that property with substantially identical property. We will not pay on a replacement cost basis for loss or damage until you repair or replace the lost or damaged property and unless the repair or replacement is made as soon as reasonably possible after the loss or damage occurs. You may make a claim for the loss or damage covered by this insurance on an actual cash value basis if you decide not to repair or replace the damaged property. You may still repair or replace that property and make a claim for the difference between the actual cash value and the repair or replacement cost if the claim for the additional cost is made within 180 days of the date the loss or damage occurs. d. For loss or damage to Covered Property of others, other than property you lease or rent from others for use in your business, the most we will pay is the smaller of: (1) The actual cash value of that property plus the value of your labor and materials; CM 88 00 01 15 Includes copyrighted material of Insurance Services Office, Inc. 2425473 with its permission. Sentry Select Insurance Company 00007 0000000000 23265 0 N fe6feab7-519a4f0b-899e-98d856985797 Ala htff" wdIXvIslan ; ' FlEm o & Arraovm Or`j 'f A+j-Li A ®. ® Risk Management Spedkist (2) Whether or not repairs are made, the repair percentage shown in the Declarations multiplied by the average retail cost in your area for parts plus your labor costs based on your average retail labor rates needed to restore that property to its condition immediately before the loss or damage occurred; or (3) The cost of replacing that property with substantially identical property. e. For loss or damage to "improvements and betterments" the most we will pay is: (1) Your cost to repair or replace "improvements and betterments", whichever is less, within 180 days of the date the loss or damage occurs; (2) Nothing if "improvements and betterments" are repaired or replaced on your behalf at the expense of others; or (3) A percentage of the original cost of "improvements and betterments" which have not been repaired or replaced. The percentage will be obtained by dividing the unexpired term of your rental agreement on the date loss or damage occurs by the period from the date the property was installed to the expiration date of the rental agreement. f. Repairs to watercraft constructed of plywood, fiberglass, plastic, metal or other synthetic material shall be made by applying suitable patches, in accordance with good repair practice, to the damaged area. g. The value of valuable papers and records is the cost to replace blank materials for reproducing the records (whether or not duplicates exist), and (when there is a duplicate) the cost of labor to transcribe or copy the records. h. The value of building glass is its replacement cost. If safety glazing material is required by statute, the value of the glass is the cost of replacement with safety glazing materials. i. The value of fine arts is the lowest of the following amounts: (1) The market value of the property; (2) The cost of reasonably restoring the property to its condition immediately before loss; or 2. The following conditions apply in addition to the Commercial Inland Marine Conditions and the Common Policy Conditions: a. Coverage Territory (1) We cover property wherever located within or while in transit between locations in: (a) The United States of America, including its territories and possessions; (b) Puerto Rico; and (c) Canada. (2) If a watercraft, while afloat: (a) In coastal waters not more than twelve (12) miles from the nearest coastal shoreline; or (b) In the inland waters; of the United States of America and Canada. b. Records and Inventory You will keep accurate records of your business and retain them for 3 years after the policy ends. These records will consist of: (1) An itemized inventory of your stock in trade; (2) Records of all purchases and sales whether cash or credit; (3) Records of property of others in your care, custody or control; and (4) Records of property you send to others for any purpose. You will also take a physical inventory of all your stock in trade at least every 12 months. c. Who Is An Insured For property you own or lease or rent from others and used in your business, including your stock of property held for sale or rent, you are the only insured for the coverage provided under this Coverage Form. For property of others in your care, custody or control, you, your partners and your employees are insureds for the coverage provided under this Coverage Form. F. Definitions (3) The cost of replacing the property with 1. "Electronic media' means the pl substantially identical property. that stores electronic Sentry Select Insurance Company as disks, flashdrives, i f«iDlli'=C' Page 12 of 14 Includes copyrighted material of Insurance Services Office, Inc. 2425473 with its permission. u=or f&in� & Apmovao Sr. A+� A,ZV44 Ruk Management Speualtst 2. "False pretense" means loss resulting from 6. "Mobile equipment" means the following types any of the following: of land vehicles, including any attached a. Someone causing you to voluntarily part machinery or equipment: with possession of or evidence of title to a. Vehicles maintained for use solely on or Covered Property when induced, at the next to premises you own or rent. time of sale, by: b. Vehicles whether self-propelled or not, (1) Receipt of a forged or counterfeit maintained primarily to provide mobility to instrument in payment; permanently mounted power cranes, (2) Receipt of a check or other instrument shovels, loaders, diggers or drills. written on an account closed before the c. Vehicles other than those described in a. or instrument is presented for payment; b. above that are not self-propelled and are (3) A false or forged name, social security maintained primarily to provide mobility to number, or signature on a credit permanently attached equipment of the application or a rental or lease following types: agreement; (1) Air compressors, pumps and (4) Any other criminal scheme, criminal generators, including spraying, welding, trick or criminal device. building cleaning, geophysical exploration, lighting and well servicing You must have had legal title to and equipment; possession of the Covered Property prior to the loss. (2) Cherry pickers and similar devices used to raise or lower workers. b. Having acquired property from seller who did not have legal title or ownership. d. Vehicles, other than those described in a. or b. above, maintained primarily for c. Confiscation of Covered Property you own purposes other than the transportation of by a governmental or civil authority, for persons or cargo. However, self-propelled alleged or actual violations of laws vehicles with the following types of governing the distribution, sale or use of permanently attached equipment are not controlled substances, if the alleged or ..mobile equipment" but will be considered actual violations were committed by your automobiles: customer or your employee without the knowledge or consent of you, your (1) Equipment designed primarily for road partners, directors, executive officers, maintenance (not construction or stockholders, or members or managers (if resurfacing) or street cleaning. you are a limited liability company). (2) Cherry pickers and similar devices d. Your voluntarily parting with Covered mounted on automobile or truck Property owned by your customer resulting chassis and used to raise or lower from a fraudulent scheme, trick or device. workers. The customer's Covered Property must (3) Air compressors, pumps and have been in your possession immediately generators, including spraying, welding prior to the loss. building cleaning, geophysical e. Criminal conversion of Covered Property exploration, lighting and well servicing by your customer. equipment. 3. "Improvements and betterments" means 7. "Pollutants" means any solid, liquid, gaseous fixtures, alterations, installations or additions or thermal irritant or contaminant including to a building you lease or rent from others smoke, vapor, soot, fumes, acids, alkalis, made at your expense but which you cannot chemicals and waste. Waste includes material legally remove. to be recycled, reconditioned or reclaimed. 4. "Lease agreement" means a written 8. "Specified causes of loss" means the agreement between you and a "lessee" in following: fire; lightning; explosion; windstorm which you agree to lease or rent, including a or hail; aircraft or vehicles; earthquake or lease purchase agreement or rent to own landslide (to the extent coverage is provided); agreement, specified personal property to the riot or civil commotion; vandalism; theft; "lessee" for a specified period of time. leakage from fire extinguishing equipment; "Lessee' sinkhole collapse; falling objects; weight of 5. means a person or organization to whom you lease or rent equipment under a snow, ice or sleet; - "lease agreement". collision 0f land is con xWeMn,.gnnmt mS bi covered property �. fffiner�o6AraRw®er.r. `1A ti L' A, fr Auw.�te CM 88 00 01 15 Includes copyrighted material of Insurance Services Office, Inc. Risk Management Specialist 2425473 with its permission. Sentry Select Insurance Company 13 00007 0000000000 23265 0 N fe6feab7-519a4fOb-899e-98de56985797 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 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. 9. "Unmanned aircraft" means an aircraft that is not designed, by the manufacturer, to be controlled by an individual from within or on the aircraft. G. Coverage Options The following coverage options will apply only when specifically indicated in the Declarations: 1. Peak Season The Limit of Insurance for Covered Property is increased to the amount shown in the Declarations for this optional coverage. The increased amount applies from 12:01 A.M. Standard Time on the first day to 12:01 A.M. Standard Time on the last day of the periods shown in the Declarations. 2. Legal Liability Coverage - Property of Others Subparagraphs 1.b. and t.c. of Paragraph A. Coverage are replaced by the following: b. We will also pay the sums you are legally obligated to pay as damages for direct physical loss or damage to Covered Property of others by a Covered Cause of Loss. Covered property of others includes: (1) Property of others, similar to property held for sale in the normal course of your business, while in your care, custody or control; and (2) Other property of others in your care, custody or control for service, repair, storage, launching or hauling out. 3. Physical Damage Waiver If Physical Damage Waiver Coverage is indicated as included on the Declarations, then Property Not Covered Provision g. does not apply. Page 14 of 14 Includes copyrighted material of Insurance Services Office, Inc. 2425473 with its permission. Sentry Select Insurance Company Rick Tau,kgemmt Dhiebn REV EwFo & APPROVm ar. `®' Rkk Manzgement Spedzli5t