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HomeMy WebLinkAboutJPW COMMUNICATIONS, INC.INSURANCE ON FILE WORK MAY PROCEED UNTIL INSURANCE EXPIRES A-2024-209-02 CITY C 2 4 2925 DATE. AGREEMENT WITH JPW COMMUNICATIONS, INC. TO PROVIDE ON -CALL VIDEO PRODUCTION AND TECHNICAL SERVICES FOR THE CITY OF SANTA ANA THIS AGREEMENT is made and entered into on this 17'u day of December, 2024 by and between p : CMo(0) JPW Communications, a California corporation ("Consultant"), and the City of Santa Ana, a Pal E4ws (IkFlcharter city and municipal corporation organized and existing under the Constitution and laws of the State of California ("City"). RECITALS A. On September 23, 2024 the City issued Request for Proposal ("RFP") No. 24-108, by which it sought qualified consultants to provide on -call video production and technical services, for service options listed in the RFP, for video production of City Council meetings; other video productions including recorded event videos, live event videos, marketing and PSA videos, animated videos, and social media video content; and audio/visual system design and equipment maintenance. B. Consultant submitted a responsive proposal that was among those selected by the City. Consultant represents that it is able and willing to provide the services described in the scope of work that was included in the RFP. Consultant's proposal shall be incorporated by reference as though fully attached here to this Agreement. C. In undertaking the performance of this Agreement, Consultant represents that it is knowledgeable in its field and that any services performed by Consultant under this Agreement will be performed in compliance with such standards as may reasonably be expected from a professional consulting 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 On an on -call basis, and at the City's sole discretion, Consultant 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, for Options C, and D. 2. COMPENSATION a. City neither warrants nor guarantees any minimum or maximum compensation to Consultant shall be paid only for actual services performed under this Agreement at the rates and charges identified in Exhibit B. Consultant is one of four (4) consultants selected under RFP 24-108. The total compensation for these services provided by all such consultants selected under RFP 24-108 shall not exceed the shared aggregate amount of Six Hundred Thousand Dollars ($600,000) during the term of the Agreement, including any extension periods. Page 1 of #454844vl b. 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 Consultant agree that all payments due and owing under this Agreement shall be made through Automated Clearing House (ACH) transfers. Consultant 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 Consultant'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 January 1, 2025 and continue for a two (2) year term through December 31, 2026 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 Consultant shall, during the entire term of this Agreement, be construed to be an independent Consultant 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 Consultant performs the services which are the subject matter of this Agreement; however, the services to be provided by Consultant shall be provided in a manner consistent with all applicable standards and regulations governing such services. Consultant 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 Consultant under this Agreement ("Documents & Data"). Consultant 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. Consultant represents and warrants that Consultant has the legal right to license any and all Documents & Data. Consultant makes no such representation and warranty in regard to Documents & Data which were provided to Consultant 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 #454844vl 6. INSURANCE Prior to undertaking performance of work under this Agreement, Consultant shall maintain and shall require any subcontractors to obtain and maintain insurance as described below for the entire Term of this Agreement against claims for injuries to persons or damage to property which may arise from or in connection with services, products and materials supplied to City. Total cost of such insurance shall be borne by Consultant. 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 $2,000,000 per occurrence and $4,000,000 aggregate. Required policy limits can be met with primary and umbrella/excess insurance policies. 2. Automobile Liability: Insurance Services Office Form CA 00 01 covering Code I (any auto), with limits no less than $1,000,000 combined single limits. In the event Consultant does not maintain commercial automobile liability insurance, City will accept evidence of personal automobile insurance. 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, policy or employee, for bodily injury or disease. Coverage is not required if Consultant has no employees and signs request to waive such insurance. 4. Professional Liability Insurance: with limits no less than $I,000,000 per occurrence or claim, and $2,000,000 aggregate. If Consultant maintains broader coverage and/or higher limits than the minimum requirements for each line of coverage shown above, City requires and shall be entitled to the broader coverage and/or the higher limits maintained by Consultant. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to City. Other Insurance Provisions The above required insurance policies are to contain or be endorsed to contain the following provisions: 1. City, its City Council, its officers, officials, employees, agents, and volunteers are to be covered as additional insureds, under Consultant's CGL, Professional Liability, and Automobile Liability policies, with respect to any liability arising out of work or operations performed by or on behalf of the Instructor including materials, parts, equipment, and personnel furnished in connection with such work or operations. Page 3 of 9 #454844vl 2. Consultant's Insurance company(ies) agrees to waive all rights of subrogation against City, its City Council, its officers, officials, employees, agents, and volunteers for losses paid under the terms of any policy which arise from work performed by Consultant under this Agreement. 3. For any claims related to this contract, Consultant's insurance coverage shall be primary and any insurance maintained by City, its City Council, its officers, officials, employees, agents, or volunteers shall not contribute with it. 4. A severability of interest provision must apply for all the additional insureds, ensuring that Consultant's insurance shall apply separately to each insured against whom a claim is made or suit is brought, except with respect to the insurer's limits of liability. 5. Insurance policies required herein shall provide that coverage shall not be canceled, suspended, voided, reduced in coverage or in limits, non -renewed by the carrier, or materially changed except after thirty (30) days prior written notice has been given to City. Ten (10) days prior written notice shall be provided to City for policy cancellation or non - renewal due to non-payment of premium. 6. Certificate Holder on each Evidence of Insurance certificate shall be: City of Santa Ana, Attention: City Manager's Office, 20 Civic Center Plaza, M-31, Santa Ana, CA 92701. The name and location of project must be included in the Description of Operations section of each certificate. Self -Insured Retentions Self -insured retentions must be declared to and approved by the City. The City may require the Consultant 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. Acceptability of Insurers Insurance is to be placed with insurers authorized to conduct business in the State of California with a current A.M. Best rating of no less than A:VII, unless otherwise acceptable to City. Verification of Coverage Consultant shall furnish City with original Certificates of Insurance including all required amendatory endorsements (or copies of the applicable policy language effecting coverage required by this clause) and a copy of the Declarations and Endorsement Page of the CGL policy listing all policy endorsements before work begins. However, failure to obtain the required documents prior to the work beginning shall not waive Consultant's obligation to provide them. City reserves the right to require complete, certified copies of all required insurance policies, including endorsements required by these specifications, at any time. Special Risks or Circumstances City reserves the right to modify these requirements, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances. Page 4 of 9 #454844v1 7. INDEMNIFICATION Consultant 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 Consultant 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 Consultant 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 Consultant to the City pursuant to this Agreement. 9. RECORDS Consultant shall keep records and invoices in connection with the work to be performed under this Agreement. Consultant 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 Consultant under this Agreement. All such records and invoices shall be clearly identifiable. Consultant 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. Consultant 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 Consultant under this Agreement. Page 5 of 9 #454844vl 10. CONFIDENTIALITY If Consultant receives from the City information which due to the nature of such information is reasonably understood to be confidential and/or proprietary, Consultant 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 Consultant disclosed in a publicly available source; (c) is in rightful possession of the Consultant without an obligation of confidentiality; (d) is required to be disclosed by operation of law; or (e) is independently developed by the Consultant without reference to information disclosed by the City. 11. CONFLICT OF INTEREST CLAUSE Consultant 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 Consultant 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. Consultant 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 Consultant 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 #454844vl 14. ASSIGNMENT Inasmuch as this Agreement is intended to secure the specialized services of Contractor, Consultant 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, Consultant shall be entitled to receive and the City shall pay Consultant compensation for all services performed by Consultant 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 Consultant 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 Consultant 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 Consultant 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. Consultant shall notify the City immediately and Page 7 of 9 #454844vl 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: City Manager's Office City of Santa Ana 20 Civic Center Plaza (M-31) P.O. Box 1988 Santa Ana, California 92702 To Contractor: JPW Communications, Inc. Attn: Jenny Windle, CEO 2710 Loker Ave. W, Suite 300 Carlsbad, CA 92010 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 this Agreement, and shall indemnify City fully, including reasonable costs and Page 8 of 9 #454844vl attorney'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. ATTEST: APPROVED AS TO FORM: SONIA R. CARVALHO City Attorney By: athan T. Martine Assistant City Attorney #454844vl CITY OF S TA AN Li�w � Alvaro Nunez City Manager CONSULTANT: Jennifer Windle Jenny Windle CEO Digitally signed by Jennifer Windle Date: 2024.12.09 10:14:52-08'00' Page 9 of 9 EXHIBIT A SCOPE OF SERVICES CITY OF SANTA ANA EXHIBIT A SCOPE OF SERVICES Contractor shall perform services as set forth below. I. OPTION A: City Council and other Public Meetings A. General Responsibilities: 1. Serve as Video Producer/Administrator for all City of Santa Ana Council meetings and cable -casting events in Council Chambers. i. Live broadcast and record City Council meetings. 2. Provide production services in live meeting coverage and playback for approximately twenty-four (24) meetings, including: i. City Council meetings held on the first and third Tuesdays of the month, and ii. Possible additional public meetings as selected by the City Clerk and/or City Manager, as needed. 3. Provide technical assistance for City production crews and staff. 4. Be responsible for all graphics/audio/visual needs during the presentations, which includes: i. PowerPoint, ii. Overheads, iii. Video roll -ins and presentations, iv. Review cueing system, v. Proper use of microphones for Council. 5. Arrange for and design overall look and style of productions. 6. Arrange for input of council graphics prior to the meeting. Run a spell check. Arrange for graphics to state replays during the meeting, approximately every 30 minutes during program. 7. Use of video streaming services that integrate with Facebook Live, YouTube Live, or similar social media platforms. 8. Responsiveness to provide video services for meetings on short notice (24 to 72 hours in advance.) Proposer should identify staffing levels, availability and how these needs will be met. B. Communication with City Staff: 1. Maintain open communications with the Public Affairs Information Officer and City Clerk's Office for special needs or changes pertinent to the agenda for each council meeting. 2. Communicate and confirm with the Public Affairs Information Officer regarding Council meeting coverage and playback related to the city channel. Report technical playback and Council problems and remedies to the cable office. City of Santa Ana RFP No. 24-108 Page 16 of 33 (a CITY OF SANTA ANA 3. Direct communication with City Councilmembers and City Clerk. C. Staffing Responsibilities: 1. Provide, hire and supervise all video production crew and staff to ensure that the control room is fully staffed during meetings and to provide a professional, high -quality video production. i. Staff shall include Director, Camera Robotics Operator, Audio Operator, Graphics Designer and Playback Operator. These positions may be consolidated in one or more persons. City recommends a crew of 2-3 people. 2. Schedule video production staff. Pre -arrange and notify crew of video productions and changes. 3. Provide for office administration and payroll for video production and playback crew. 4. Provide and be responsible for all production staff training and hands-on use of equipment for video crews. D. Training and Support: 1. Provide a training program (remotely or in -person) to a group of up to eight (8) City staff members. i. Training shall describe the roles and responsibilities of the Contractor in providing the video streaming service for City Council/public meetings. ii. Training shall identify how City Staff can identify and rectify minor problems that may arise in the rollout of the video streaming services. 2. Provide a main point of contact for City Staff. i. The main point of contact shall have a thorough understanding of the video streaming system and be capable of troubleshooting problems remotely with City Staff who may not be experts in video and audio technology. E. Other Responsibilities: 1. Provide maintenance of playback equipment located in City Hall as necessary for City Council meetings. i. The City of Santa Ana provides the control room equipment, cameras and equipment located inside the Council Chambers to broadcast and record the City Council meetings, including computers and other video production equipment. II. OPTION B: Annual State of the City Address 1. Contractor shall produce the Mayor's annual State of the City address, including: i. Hiring and supervising crew for camera operations, ii. Audio mixing, iii. Cable running, iv. Equipment load -in and load -out, v. Directing the show for video, City of Santa Ana RFP No. 24108 Page 17 of 33 (a CITY OF SANTA ANA vi. Renting all needed video equipment and vii. Editing the finished video for playback. III. OPTION C: Event Video Production 1. On- and off -site video production services in Santa Ana for City -produced events that may include, but are not limited to: i. 4th of July Celebration, ii. Fiestas Patrias, iii. Santa Ana Fun Run. 2. This shall include all responsibility for graphics, video roll -ins and all audio/visual needs. 3. Event production may be a recorded event or a live event broadcast. 4. Approximately one event video per month. IV. OPTION D: Other Video Production 1. On- and off -site video production services in Santa Ana to produce videos tailored for social media, City TV channel, marketing, website, employee orientation, and other internal and external uses. 2. These would be brief videos (30 seconds to 5 minutes) and shall include editing for graphics, captions, animations, video roll -ins and all audio/visual needs. 3. Approximately 1-2 videos per month. 4. Could include occasional longer form videos, such as documentary style or news broadcast style, requiring additional filming and editing time. V. OPTION E: Cable/Video/Audio Equipment Maintenance and Installation 1. Confer with City staff to evaluate needs and supervise maintenance activity of all city owned audio/video facilities, as needed. Said facilities include, but are not limited to, City Hall, recreation centers, senior centers, stadium, soccer fields, etc. 2. Review and make recommendation for the repair and /or replacement of said audio/video facilities. 3. Develop purchase lists, install, integrate and upgrade systems or equipment as needed. 4. Troubleshoot system, system repair, system alignment, calibration and design. 5. Design layout of electrical circuitry for existing and /or acquired audio/video equipment. 6. Establish and maintain equipment log and database to keep inventory and records of maintenance and to track equipment performance. 7. Help establish and enforce City policies for equipment use. Provide operation instruction for staff. City of Santa Ana RFP No. 24-108 Page 18 of 33 (a CITY OF SANTA ANA 8. Prepare preventative maintenance schedules and execute said maintenance on a routine basis. 9. Coordinate equipment repair with outside agencies. 10. Supervise annual asset inventories and tagging of new assets, as needed. 11. Coordinate acquisition of new production equipment. 12. Facilitate and supervise use of facilities or equipment by outside agencies, persons, other City employees or cable franchisee staff. 13. Provide updates to City staff on progress of equipment installation, maintenance, building projects and anticipated completion dates. 14. Conduct regular security checks on the City's production equipment. 15. Assist City Clerk and other staff on use of Council Chambers: video, audio, lighting, PowerPoint, Elmo or other technical needs. 16. Facilitate completion of production services requested by City staff (including making dubs, editing and shooting videos, setting up equipment, programming videos on the city TV channel, delivering equipment, setting up operating facilities as needed.) 17. Vendor may utilize consultants/subcontractors to assist as required at the discretion of and with approval from the City Manager's Office. 18. Ensure compliance with local, state, and federal safety codes and regulations. VI. Other Services Not Mentioned 1. In addition to the designated proposal cost categories provided below, Proposers are encouraged to provide cost proposals for services that are not described in this RFP but may be of benefit to the City with regard to video streaming services. City of Santa Ana RFP No. 24-108 Page 19 of 33 EXHIBIT B COMPENSATION Fee Proposal including hourly rates if applicable r� Ct J) ) PL-4 C) F�--I C) LJ o 0 o o o O 0 0 0 0 0 o N 0 0 ti � M w amv � w w C a t a S n c o c p m n`o O O E v c o m v c 0 m 0o O O E v c 0 m o c 0 m m p p E 0$ c o m 3 � n 3 t 3 0 s w 0 r w a a v p 0 w 3 v C O m E a> 9 a U 0 v v m 0 0 a d C 0 v m C 0 v m C 0 v m C 0 v m > v � c m c O = .0 0 v Ln 0 0 W� M 0 to � J Q E Z E U C O m E v p o 0 > c o m p 01 v m a o - r m v o m 3 m m U > o o .� v v w ° m u E m s c o u 3 0 O �o ¢ o o 3 O y O 0 0 � 1A Y T7 W 9 m d o N N O L E N O C y ¢> N C 3 N E ° v a v 0 U u E 3ai a° m m `m O z C o N T d j O Cm O Q N C Viws. w w m¢ o m m v a U C N p m N U p :E s o m`M v E "v w �- m v > x `m O m a m> o v w a O o , U m a E o m o c E u E C C w— 3 0 x m W C N O U n d C 0 ry -0L O N Ow O C` 3 m p t 0 7 C OU > m E.00 U Q 3 � M N N 0 0 N N ^ 0 ry 0 N Q O O O N N 1fl Hj b9 ffl ffl 0 0 0 0 O o 0 0 0 0 0 0 m m m m m m 0 O m O J 0 0 7 V Ol T a N N N m m O O O O O N N N N N 0 0 w w m m 0 .w O � � x m � m00 u M O 0 O O 0 0 M O O tp t0 (m"1 M Q U O N of m m m m m O �v � N N W o a U c m Oa c a x a Wm N 3 O N c 6. m N -F, v & o E Z c a a m v w s c U G — CC 3 Ww a E Q c K x 3 oc O m O N O m O O m m O O N N m In O O N N N O O O m W r n m m m O O M N N N N N N N to W tR b9 to EA <A to kA Ni fA H3 fA E9 fA to kfl E c E d S o` u A U v $ o m o o w a o cco _1 p N JPWCOMM-01 A` oRo CERTIFICATE OF LIABILITY INSURANCE DATE YYY) 121512025/2024 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 of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endomement(s). PRODUCER C NTACT Culture Insurance Services, LLC 140 West 3rd Avenue Escondido, CA 92025 PHONE FAX INC, No, Eat): (619) 346-9653 lac, No :(619) 324-7035 E-MAIL . accounting@cultureinsurance.com INSURER(Sl AFFORDING COVERAGE NAIC R INSURER A: Hanover insurance Company NAIC922292 22292 INSURED INSURERS: United Specialty Insurance Company INSURER c:TrisuraSpecialty Insurance JPW Communications Inc. INSURER D 2710 Loker Ave W Suite 300 Carlsbad, CA 92010 INSURER E NSURER F: COVERAGES CERTIFICATE NUMBER: 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 CONTRACTOR OTHER DOCUMENTWITH RESPECTTO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECTTO ALLTHE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. INSR LTR TYPE OF INSURANCE ADDLSUBR POLICY NUMBER UPMOILAICOM POLICYEXP) LIMITS A X COMMERCIAL GENERAL LIABILITY CLAIMS -MADE O OCCUR X X OBF J373720 01 41412024 41412025 EACH OCCURRENCE S 2,000,000 DAMAGE TO RENTED PREMISES La omumencelMED $ 300,000 EXP (Am one erson $ 5,000 PERSONAL &ADV INJURY S 2,000,000 AGGREGATE LIMIT APPLIES PER: POLICY � j�T LOC GENERALAGGREGATE S 4,000,000 JEN'L PRODUCTS-COMP/OP AGG 4,000,000 X $ OTHER: HNOA ONCLUDED A AUTOMOBILE LIABILITY COMBINED SINGLE LIMIT $ 1,000000 BODILY INJURY Per erson $ ANY AUTO OBF J37372001 4/4/2024 4/4/2025 1XX OWNED SCHEDULED AUTOS ONLY AUTOS BODILY INJURY Per a,sldent $ Pare %T.Yt AMAGE $ II{A{LRTOS ONLY X AUUTNOS ONLY C8%RAGE ONL $ A X UMSRELLALIAB X OCCUR EACH OCCURRENCE $ 1,000,000 AGGREGATE 11000,000 EXCESS LIAB CLAIMS -MADE OBF J37372001 414/2024 4/412025 DED I X I RETENTION$ 0 $ A WORKERS COMPENSATION AND EMPLOYERS' LIABILITY YIN OFFICEWMEMBERwqEXCLUDED ECUTIVE ❑ (Mandatory In NH) If yes, Cescdbe under DESCRIPTION OF OPERATIONS below NIA BF J373715 01 41412024 4/412025 X I PERTUTE I OTH- E.L EACH ACCIDENT 1,000,000 E.L. DISEASE - EA EMPLOYEE $ 1,000,000 E.L DISEASE - POLICY LIMIT 1,000,000 $ B Professional Liab GCT-1847134-02 4/4/2024 4/4/2025 Policy Aggregate 2,000,000 C Cyber Liability B-6609930-04 4/4/2024 4/412025 Aggregate 2,000,000 DESCRIPTION OF OPERATIONS / LOCATIONS / VEHICLES (ACORD 101, Additional Remarks Schedule, maybe adached R more space is required) City of Santa Ana, its City Council, its officers, officials, employees, agents, and volunteers are named as additional insured per the attached endorsement This insurance is primary. Waiver of Subrogation applies. APPROVED By Cynthia Mora at 4:12 pm, Jan 13, 2025 City of Santa Ana Attn: City Manager's Office 20 Civic Center Plaza, M-31 Santa Ana, CA 92701 SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. T �HOZE AUTHORIZED RREPRESENTATWE r ACORD 25 (2016/03) © 1988-2015 ACORD CORPORATION. All rights reserved. The ACORD name and logo are registered marks of ACORD JPW Communications Inc. #OBF J373720 01 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. BLISINESSOWNERS LIABILITY SPECIAL BROADENING ENDORSEMENT This endorsement modifies insurance provided under the following: BUSINESSOWNERS COVERAGE FORM SUMMARY OF COVERAGES Limits Page 1. Additional Insured by Contract, Agreement or Permit Included 1 2, Additional Insured - Broad Form Vendors Included 2 3. Alienated Premises Included 3 4. Broad Form Property Damage - Borrowed Equipment, Customers Goods and Use of Elevators Included 3 5. Incidental Malpractice (Employed Nurses, EMT's and Paramedics) Included 3 6. Personal and Advertising Injury - Broad Form Included 4 7. Included 4 Product Recall Expense Each Occurrence Limit $25,000 Occurrence 5 Product Recall Expense Aggregate Limit $50,000 Aggregate 5 Product Recall Deductible $500 5 8. Unintentional Failure to Disclose Hazards Included 6 9. Unintentional Failure to Notify Included 6 This endorsement amends coverages provided under the Businessowners Coverage Form through new coverages and broader coverage grants. This coverage is subject to the provisions applicable to the Businessowners Coverage Form, except as provided below. The following changes are made to SECTION II - LIABILITY: 1. Additional Insured by Contract, Agreement or Permit The following is added to SECTION II - LIABILITY, C. Who Is An Insured: Additional Insured by Contract, Agreement or Permit a. Any person or organization with whom you agreed in a written contract, written agreement or permit to add such person or organization as an additional insured on your policy is an additional insured only with respect to liability for "bodily injury", "property damage", or "personal and advertising injury" caused, in whole or in part, by your acts or omissions, or the acts or omissions of those acting on your behalf, but only with respect to: (1) "Your work" for the additional insured(s) designated in the contract, agreement or permit; (2) Premises you own, rent, lease or occupy; or (3) Your maintenance, operation or use of equipment leased to you. b. The insurance afforded to such additional insured described above: (1) Only applies to the extent permitted by law; and (2) Will not be broader than the insurance which you are required by the contract, agreement or permit to provide for such additional insured. (3) Applies on a primary basis if that is required by the written contract, written agreement or permit. (4) Will not be broader than coverage provided to any other insured. (5) Does not apply if the "bodily injury", "property damage" or "personal and advertising injury'is otherwise excluded from coverage under this Coverage Part, including any endorsements thereto. 391-1006 08 16 Includes copyrighted materials of Insurance Services Offices, Inc., with Its permission. Page 1 of 6 c. This provision does not apply: (1) Unless the written contract or written agreement was executed or permit was issued prior to the "bodily injury", "property damage", or "personal injury and advertising injury". (2) To any person or organization included as an insured by another endorsement issued by us and made part of this Coverage Part. (3) To any lessor of equipment: (a) After the equipment lease expires; or (b) If the "bodily injury", "property damage", "personal and advertising Injury" arises out of sole negligence of the lessor. (4) To any (a) Owners or other interests from whom land has been leased if the "occurrence" takes place or the offense is committed after the lease for the land expires; or (b) Managers or lessors of premises If: (1) The "occurrence" takes place or the offense is committed after you cease to be a tenant in that premises; or (ii) The "bodily Injury", "property damage", "personal injury" or "advertising Injury" arises out of structural alterations, new construction or demolition operations performed by or on behalf of the manager or lessor. (5) To "bodily injury", "property damage" or "personal and advertising injury" arising out of the rendering of or the failure to render any professional services. This exclusion applies even if the claims against any insured allege negligence or other wrongdoing in the supervision, hiring, employment, training or monitoring of others by that insured, if the "occurrence" which caused the "bodily injury" or "property damage" or the offense which caused the "personal and advertising injury" involved the rendering of or failure to render any professional services by or for you. d. With respect to the insurance afforded to these additional Insureds, the following is added to SECTION II - LIABILITY, D. Liability and Medical Expense Limits of Insurance: The Hanover Insurance Group.. OBFJ373720 5701132 The most we will pay on behalf of the additional insured for a covered claim is the lesser of the amount of insurance: 1. Required by the contract, agreement or permit described in Paragraph a.; or 2. Available under the applicable Limits of Insurance shown in the Declarations. This endorsement shall not increase the applicable Limits of Insurance shown in the Declarations e. All other insuring agreements, exclusions, and conditions of the policy apply. 2. Additional Insured - Broad Form Vendors The following is added to SECTION II LIABILITY, C. Who Is An Insured: Additional Insured - Broad Form Vendors a. Any person or organization that is a vendor with whom you agreed in a written contract additional insured under this Coverage Part is an insured, but only with respect to liability for "bodily injury" or "property damage" arising out of "your products" which are distributed or sold in the regular course of the vendor's business. b. The insurance afforded to such vendor described above: (1) Only applies to the extent permitted by law; (2) Will not be broader than the insurance which you are required by the contract or agreement to provide for such vendor; (3) Will not be broader than coverage provided to any other insured; and (4) Does not apply if the "bodily injury", "property damage" or "personal and advertising injury" is otherwise excluded from coverage under this Coverage Part, including any endorsements thereto c. With respect to insurance afforded to such vendors, the following additional exclusions apply: The insurance afforded to the vendor does not apply to: (1) "Bodily injury" or "property damage" for which the vendor Is obligated to pay damages by reasons of the assumption of liability in a contract or agreement. This exclusion does not apply to liability for damages that the insured would have in the absence of the contract or agreement; (2) Any express warranty unauthorized by you; 391-1006 08 16 Includes copyrighted materials of Insurance Services Offices, Inc., with Its permission. Page 2 of 6 (3) Any physical or chemical change in the product made intentionally by the vendor; (4) Repackaging, unless unpacked solely for the purpose of inspection, demonstration, testing, or the substitution of parts under instruction from the manufacturer, and then repackaged in the original container; (5) Any failure to make such inspection, adjustments, tests or servicing as the vendor has agreed to make or normally undertakes to make in the usual course of business in connection with the sale of the product; (6) Demonstration, installation, servicing or repair operations, except such operations performed at the vendor's premises in connection with the sale of the product; (7) Products which, after distribution or sale by you, have been labeled or relabeled or used as a container, part or Ingredient of any other thing or substance by or for the vendor; (8) "Bodily Injury" or "property damage" arising out of the sole negligence of the vendor for its own acts or omissions or those of its employees or anyone else acting on Its behalf. However, this exclusion does not apply to: (a) The exceptions contained within the exclusion in subparagraphs (4) or (6) above; or (b) Such inspections, adjustments, tests or servicing as the vendor has agreed to make or normally undertakes to make in the usual course of business, in connection with the distribution or sale of the products. (9) "Bodily injury" or "property damage" place before you have signed the contract or agreement with the vendor. (10)To any person or organization included as an insured by another endorsement issued by us and made part of this Coverage Part. (11)Any insured person or organization, from whom you have acquired such products, or any ingredient, part or container, entering into, accompanying or containing such products. The most we will pay on behalf of the vendor for a covered claim is the lesser of the amount of insurance: 1. Required by the contract or agreement described in Paragraph a.; or 2. Available under the applicable Limits of Insurance shown in the Declarations; This endorsement shall not increase the applicable Limits of Insurance shown in the Declarations. 3. Alienated Premises SECTION II - LIABILITY, B. Exclusions, 1. Applicable To Business Liability Coverage k. Damage to Property, paragraph (2) is replaced by the following: (2) Premises you sell, give away or abandon, if the "property damage" arises out of any part of those premises and occurred from hazards that were known by you, or should have reasonably been known by you, at the time the property was transferred or abandoned. 4. Broad Form Property Damage - Borrowed Equipment, Customers Goods, Use of Elevators a. The following is added to SECTION 11 - LIABILITY, B. Exclusions, 1. Applicable To Business Liability Coverage, k. Damage to Property: Paragraph (4) does not apply to "property damage" to borrowed equipment while at a jobsite and not being used to perform operations. Paragraph (3), (4) and (6) do not apply to "property damage" to "customers goods" while on your premises nor to the use of elevators. b. For the purposes of this endorsement, the following definition is added to SECTION 11 - LIABILITY, F. Liability and Medical Expenses Definitions: 1. "Customers goods" means property of your customer on your premises for the purpose of being: a. Worked on; or b. Used in your manufacturing process. c. The insurance afforded under this provision Is excess over any other valid and collectible property insurance (including deductible) available to the insured whether primary, excess, contingent or on any other basis. 5. Incidental Malpractice - Employed Nurses, EMT's and Paramedics d. With respect to the insurance afforded to SECTION 11 - LIABILITY, C. Who Is An Insured, these vendors, the following is added to paragraph 2.a.(1)(d) does not apply to a nurse, SECTION II - LIABILITY, D. Liability and Medical Expense Limits of Insurance: 391-1006 08 16 Includes copyrighted materials of Insurance Services Offices, Inc., with Its permission. Page 3 of 6 emergency medical technician or paramedic employed by you if you are not engaged in the business or occupation of providing medical, paramedical, surgical, dental, x-ray or nursing services. 6. Personal Injury - Broad Form a. SECTION II - LIABILITY, B. Exclusions, 2. Additional Exclusions Applicable only to "Personal and Advertising Injury", paragraph e. is deleted. b. SECTION II - LIABILITY, F. Liability and Medical Expenses Definitions, 14. "Personal and advertising injury", paragraph b. is replaced by the following: b. Malicious prosecution or abuse of process. c. The following is added to SECTION II - LIABILITY, F. Liability and Medical Expenses Definitions, Definition 14. "Personal and advertising injury": "Discrimination" (unless insurance thereof is prohibited by law) that results in injury to the feelings or reputation of a natural person, but only if such "discrimination" is: (1) Not done intentionally by or at the direction of: (a) The insured; (b) Any officer of the corporation, director, stockholder, partner or member of the insured; and (2) Not directly or indirectly related to an "employee", not to the employment, prospective employment or termination of any person or persons by an insured. d. For purposes of this endorsement, the following definition is added to SECTION II - LIABILITY, F. Liability and Medical Expenses Definitions: 1. "Discrimination" means the unlawful treatment of individuals based upon race, color, ethnic origin,gender, religion, age, or sexual preference. "Discrimination" does not Include the unlawful treatment of individuals based upon developmental, physical, cognitive, mental, sensory or emotional impairment or any combination of these. e. This coverage does not apply if liability coverage for "personal and advertising injury" is excluded either by the provisions of the Coverage Form or any endorsement thereto. the Hanover Insurance Group.. OBFJ373720 6701132 o. Recall of Products, Work or Impaired Property is replaced by the following: o. Recall of Products, Work or Impaired Property Damages claimed for any loss, cost or expense incurred by you or others for the loss of use, withdrawal, recall, inspection, repair, replacement, adjustment, removal or disposal of: (1) "Your product"; (2) "Your work"; or (3) "Impaired property"; If such product, work or property is withdrawn or recalled from the market or from use by any person or organization because of a known or suspected defect, deficiency, inadequacy or dangerous condition in it, but this exclusion does not apply to "product recall expenses" that you incur for the "covered recall" of "your product". However, the exception to the exclusion does not apply to "product recall expenses" resulting from: (4) Failure of any products to accomplish their intended purpose; (5) Breach of warranties of fitness, quality, durability or performance; (6) Loss of customer approval, or any cost incurred to regain customer approval; (7) Redistribution or replacement of "your product" which has been recalled by like products or substitutes; (8) Caprice or whim of the insured; (9) A condition likely to cause loss of which any insured knew or had reason to know at the inception of this insurance; (10)Asbestos, including loss, damage or clean up resulting from asbestos or asbestos containing materials; or (11) Recall of "your products" that have no known or suspected defect solely because a known or suspected defect in another of "your products' has been found. b. The following is added to SECTION II - LIABILITY, C. Who Is An Insured, paragraph 3.b.: 7. Product Recall Expense "Product recall expense" arising out of any a. SECTION It - LIABILITY, B. Exclusions, 1. withdrawal or recall that occurred before you Applicable To Business Liability Coverage, acquired or formed the organization. 391-1006 08 16 Includes copyrighted materials of Insurance Services Offices, Inc., with its permission. Page 4 of 6 c. The following is added to SECTION II - LIABILITY, D. Liability and Medical Expenses Limits of Insurance: Product Recall Expense Limits of Insurance a. The Limits of Insurance shown in the SUMMARY OF COVERAGES of this endorsement and the rules stated below fix the most that we will pay under this Product Recall Expense Coverage regardless of the number of: (1) Insureds; (2) "Covered Recalls" initiated; or (3) Number of "your products" withdrawn. b. The Product Recall Expense Aggregate Limit is the most that we will reimburse you for the sum of all "product recall expenses" incurred for all "covered recalls" initiated during the policy period. c. The Product Recall Each Occurrence Limit is the most we will pay in connection with any one defect or deficiency. d. All "product recall expenses" in connection with substantially the same general harmful condition will be deemed to arise out of the same defect or deficiency and considered one "occurrence". e. Any amount reimbursed for "product recall expenses" in connection with any one "occurrence" will reduce the amount of the Product Recall Expense Aggregate Limit available for reimbursement of "product recall expenses" in connection with any other defect or deficiency. f. If the Product Recall Expense Aggregate Limit has been reduced by reimbursement of "product recall expenses" to an amount that is less than the Product Recall Expense Each Occurrence Limit, the remaining Aggregate Limit is the most that will be avallable for reimbursement of "product recall expenses" in connection with any other defect or deficiency. g. Product Recall Deductible We will only pay for the amount of "product recall expenses" which are in excess of the $500 Product Recall Deductible. The Product Recall Deductible applies separately to each "covered recall". The limits of insurance will not be reduced by the amount of this deductible. We may, or will if required by law, pay all or any part of any deductible amount, if applicable. Upon notice of our payment of a deductible amount, you shall promptly reimburse us for the part of the deductible amount we paid. The Product Recall Expense Limits of Insurance apply separately to each consecutive annual period and to any remaining period of less than 12 months, starting with the beginning of the policy period shown in the Declarations, unless the policy period is extended after issuance for an additional period of less than 12 months. In that case, the additional period will be deemed part of the last preceding period for the purposes of determining the Limits of Insurance. d. The following is added to SECTION II - LIABILITY, E. Liability and Medical Expense General Conditions, 2. Duties in the Event of Occurrence, Offense, Claim or Suit: You must see to it that the following are done In the event of an actual or anticipated "covered recall" that may result in "product recall expense": (1) Give us prompt notice of any discovery or notification that "your product" must be withdrawn or recalled. Include a description of "your product" and the reason for the withdrawal or recall; (2) Cease any further release, shipment, consignment or any other method of distribution of like or similar products until it has been determined that all such products are free from defects that could be a cause of loss under this insurance. e. For the purposs of this endorsement, the following definitions are added to SECTION II - LIABILITY, F. Liability and Medical Expenses Definitions: 1. "Covered recall" means a recall made necessary because you or a government body has determined that a known or suspected defect, deficiency, inadequacy, or dangerous condition in "your product" has resulted or will result in "bodily injury" or "property damage". 2. "Product recall expense(s)" means: a. Necessary and reasonable expenses for: (1) Communications, including radio or television announcements or printed advertisements including stationary, envelopes and postage; 391-100606 16 Includes copyrighted materials of Insurance Services Offices, Inc., with its permission. Page 6 of 6 (2) Shipping the recalled products from any purchaser, distributor or user to the place or places designated by you; (3) Remuneration paid to your regular "employees" for necessary overtime; (h) Hiring additional persons, other than your regular "employees"; (5) Expenses Incurred by"employees" Including transportation and accom modations; l'he Hanover ]nsurauce Group.. OBFJ373720 5701132 (1) If the, "products - completed operations hazard" is excluded from coverage under this Coverage Part including any endorsement thereto; or (2) To "product recall expense" arising out of any of "your products" that are otherwise excluded from coverage under this Coverage Part including endorsements thereto. 8. Unintentional Failure to Disclose Hazards (6) Expenses to rent additional warehouse or storage space; (7) Disposal of ,Your product", but only to the extent that specific methods of destruction other than those employed for trash discarding or disposal are 8. required to avoid "bodily injury" or "property damage" as a result of such disposal, you incur exclusively for the purpose of recalling "your product"; and b. Your lost profit resulting from such "covered recall". This Product Recall Expense Coverage does not apply: The following is added to SECTION U - LikMI.ITY, E. Liability and Medical Expenses General Conditions: Representations We will not disclaim coverage under this Coverage Part If you fall to disclose all hazards existing as of the Inception date of the policy provided such failure Is not intentional. Unintentional Failure to Notify The following is added to SECTION 11 LIABILITY, E. Liability and Medical Expenses General Conditions, 2. Duties in the Event of Occurrence, Offense, Claim or Suit; Your rights afforded under this Coverage Part shall not be prejudiced if you fail to give us notice of an "occurrence", offense, claim or "suit"; solely due to your reasonable and documented belief that the "bodily Injury", "property damage" or "personal and advertising Injury" Is not covered under this Policy. ALL OTHER TERMS, CONDITIONS, AND EXCLUSIONS REMAIN UNCHANGED. 391-1006 08 16 Includes copyrighted materials of Insurance Services Offices, Inc., with Its permission. Page 6 of 6 JPW Communications Inc. #OBF J373720 01 BUSINESSOWNERS COVERAGE FORM Table of Contents SECTION I — PROPERTY Page Number A. Coverage............................................................................................................................................. 4 1. Covered Property.......................................................................................................................... 4 2. Property Not Covered................................................................................................................... 5 3. Covered Causes of Loss.............................................................................................................. 6 4. Limitations..................................................................................................................................... 6 5. Additional Coverages................................................................................................................... 7 BusinessIncome.......................................................................................................................... 10 Business Income from Dependent Properties.............................................................................. 17 CivilAuthority................................................................................................................................ 13 Collapse........................................................................................................................................ 8 Commercial Tools and Small Equipment..................................................................................... 27 ComputerEquipment.................................................................................................................... 20 Computer and Funds Transfer Fraud........................................................................................... 34 DebrisRemoval............................................................................................................................ 7 DeferredPayments....................................................................................................................... 31 ElectronicVandalism.................................................................................................................... 31 Employee Theft including ERISA Compliance............................................................................. 18 EquipmentBreakdown................................................................................................................. 22 ExtraExpense.............................................................................................................................. 12 FineArts....................................................................................................................................... 28 Fire Department Service Charge.................................................................................................. 8 Fire Protection Equipment Recharge........................................................................................... 18 Forgeryor Alteration..................................................................................................................... 13 GlassExpenses............................................................................................................................ 18 Installation.................................................................................................................................... 27 Interruption of Computer Operations............................................................................................ 32 Leasehold Interest (Tenants only)................................................................................................ 29 Limited Coverage for Fungi, Wet Rot, or Dry Rot........................................................................ 33 Moneyand Securities................................................................................................................... 21 Money Orders and Counterfeit Money......................................................................................... 13 Ordinanceor Law......................................................................................................................... 14 Preservation of Property............................................................................................................... 8 Pollutant Clean -Up and Removal................................................................................................. 12 Rewards —Arson, Theft and Vandalism....................................................................................... 20 Sales Representative Samples.................................................................................................... 29 Tenant Building Insurance — When Your Lease Requires You to Provide Insurance ................. 34 Tenant Business Personal Property Insurance — When Your Lease Requires You to Provide 34 Insurance...................................................................................................................................... 391-1003 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 1 of 81 Tenant Signs (Tenants Only)....................................................................................................... 22 Theft of Telephonic Services........................................................................................................ 34 Unauthorized Business Credit Card Use...................................................................................... 30 UtilityServices.............................................................................................................................. 30 Water Damage, Other Liquids, Powder or Molten Material Damage ........................................... 10 6. Coverage Extensions................................................................................................................... 35 AccountsReceivable.................................................................................................................... 37 Business Personal Property Temporarily in Portable Storage Units ............................................ 39 Appurtenant Structures................................................................................................................. 38 Inventory and Loss Appraisal....................................................................................................... 39 Key Replacement and Lock Repair.............................................................................................. 38 Newly Acquired or Constructed Property..................................................................................... 35 OutdoorProperty.......................................................................................................................... 36 PavedSurfaces............................................................................................................................ 39 PersonalEffects........................................................................................................................... 36 Personal Property Off Premises................................................................................................... 36 Personal Property In Transit......................................................................................................... 38 Valuable Papers and Records (Other Than Electronic Data) ...................................................... 36 UndergroundPipes....................................................................................................................... 40 B. Exclusions........................................................................................................................................... 40 C. Limits of Insurance............................................................................................................................. 45 D. Deductibles......................................................................................................................................... 46 E. Property Loss Conditions.................................................................................................................. 47 1. Abandonment................................................................................................................................ 47 2. Appraisal........................................................................................................................................ 47 3. Duties in the Event of Loss or Damage...................................................................................... 47 4. Legal Action Against Us............................................................................................................... 48 5. Loss Payment................................................................................................................................ 48 6. Recovered Property...................................................................................................................... 50 7. Vacancy.......................................................................................................................................... 50 8. Pair, Sets or Parts......................................................................................................................... 51 F. Property General Conditions............................................................................................................. 51 1. Control of Property....................................................................................................................... 51 2. Mortgageholders........................................................................................................................... 51 3. No Benefit to Bailee...................................................................................................................... 52 4. Policy Period, Coverage Territory............................................................................................... 52 5. Protective Devices........................................................................................................................ 52 6. Increase in Hazard........................................................................................................................ 52 G. Property Definitions........................................................................................................................... 52 SECTION II — LIABILITY A. Coverages........................................................................................................................................... 59 1. Business Liability.......................................................................................................................... 59 391-1003 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 2 of 81 2. Medical Expenses......................................................................................................................... B. Exclusions........................................................................................................................................... 1. Applicable to Business Liability Coverage................................................................................ 2. Additional Exclusions Applicable only to Personal and Advertising Injury ........................... 3. Additional Exclusions Applicable to Medical Expenses Coverage Only ................................ 4. Additional Exclusions Applicable to Both Business Liability Coverage and Medical Expenses Coverage — Nuclear Energy Liability Exclusion .................................................... C. Who is an Insured............................................................................................................................... D. Liability and Medical Expenses Limits of Insurance...................................................................... E. Liability and Medical Expenses General Conditions...................................................................... 1. Bankruptcy.................................................................................................................................... 2. Duties in the Event of Occurrence, Offense, Claim or Suit ...................................................... 3. Legal Action Against Us............................................................................................................... 4. Separation of Insureds................................................................................................................. F. Liability and Medical Expenses Definitions..................................................................................... SECTION III — COMMON POLICY CONDITIONS (APPLICABLE TO SECTION I — PROPERTY AND SECTION II — LIABILITY) A. Cancellation........................................................................................................................................ B. Changes............................................................................................................................................... C. Concealment, Misrepresentation or Fraud...................................................................................... D. Examination of Your Books and Records........................................................................................ E. Inspections and Surveys................................................................................................................... F. Insurance Under Two or More Coverages........................................................................................ G. Liberalization...................................................................................................................................... H. Other Insurance.................................................................................................................................. I. Premiums.............................................................................................................................................. J. Premium Audit..................................................................................................................................... K. Transfer of Rights of Recovery Against Others to Us.................................................................... L. Transfer of Your Rights and Duties Under This Policy................................................................... 61 62 62 68 69 70 71 72 73 73 73 73 73 74 77 78 78 78 78 78 79 79 80 80 80 81 391-1003 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 3 of 81 BUSINESSOWNERS COVERAGE FORM Various provisions in this policy restrict coverage. Read the entire policy carefully to determine rights, duties and what is and is not covered. Throughout this Coverage Form the words "you" and "your" refer to the Named Insured shown in the Declarations. The words "we", "us" and 'bur" refer to the company providing this insurance. In SECTION II — LIABILITY, the word "insured" means any person or organization qualifying as such under paragraph C. Who is an Insured. Other words and phrases that appear in quotation marks have special meaning. Refer to paragraph G. Property Definitions in SECTION I — PROPERTY and paragraph F. Liability and Medical Expenses Definitions in SECTION II — LIABILITY. SECTION I — PROPERTY (d) Appliances used for refrigerating, A. Coverage ventilating, cooking, dishwashing We will pay for direct physical loss of or damage to or laundering; Covered Property at the premises described in the (6) If not covered by other insurance Declarations caused by or resulting from any (a) Additions under construction, Covered Cause of Loss. alterations and repairs to the 1. Covered Property buildings or structures; Covered Property includes Buildings as described in paragraph a. below, Business Personal Property as described in paragraph b. below, or both, depending on whether a Limit of Insurance is shown in the Declarations for that type of property. Regardless of whether coverage is shown in the Declarations for Buildings, Business Personal Property, or both, there is no coverage for property described in SECTION I — PROPERTY, A. Coverage, 2. Property Not Covered. a. Buildings, meaning the buildings and structures at the premises described in the Declarations, including: (1) Completed additions; (2) Fixtures, including outdoor fixtures; (3) Permanently installed: (a) Machinery; and (b) Equipment; (4) Your personal property in apartments, rooms or common areas furnished by you as the landlord; (5) Personal property owned by you that is used to maintain or service the buildings or structures or the premises, including: (b) Materials, equipment, supplies and temporary structures, on or within 1,000 feet of the described premises, used for making additions, alterations or repairs to the buildings or structures. (7) Signs, whether or not they are attached to covered buildings or structures; (8) Interior and Exterior Building glass if you are a building owner; (9) Fences and retaining walls located on or within 1,000 feet of a covered building or structure, whether or not attached to buildings or structures, except for retaining walls that are used, in whole or in part, to contain water. b. Business Personal Property located in or on the buildings or structures at the described premises or in the open (or in a vehicle) within 1,000 feet of the building or structures or within 1,000 feet of the premises described in the Declarations, whichever distance is greater, including: (1) Property you own that is used in your business; (a) Fire protection equipment; (2) Property of others that is in your care, custody or control, including the cost (b) Outdoor furniture; of labor, materials or services (c) Floor coverings; and furnished or arranged by you on personal property of others, except as otherwise provided in SECTION I — 391-1003 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 4 of 81 PROPERTY, E. Property Loss Condition, 5. Loss Payment paragraph d., subparagraph (3)(b); (3) Tenant's improvements and betterments. Improvements and betterments are fixtures, alterations, installations or additions: (a) Made a part of the building or structure you occupy but do not own; and (b) You acquired or made at your expense but cannot legally remove. (4) Leased personal property for which you have a written contractual responsibility to insure, unless otherwise provided in paragraph (2) above; (5) Exterior building glass, if you are a tenant and no Limit of Insurance is shown in the Declarations for Building property. The glass must be owned by you or in your care, custody or control; (6) Physical damage sustained to a building leased to you caused by or resulting from "theft" or attempted "theft", burglary or robbery of your Business Personal Property. 2. Property Not Covered Covered Property does not include: a. Aircraft, automobiles, motortrucks and other vehicles subject to motor vehicle registration; b. Contractor's equipment, which is used or operated principally away from the premises described in the Declarations, or parts and equipment, whether attached or unattached to contractor's equipment, unless such parts and equipment is held for sale by you, or sold by you but not delivered unless specifically endorsed and scheduled, or as provided for in SECTION I — PROPERTY, B. Additional Coverages, v. Commercial Tools and Small Equipment; c. "Money" or "securities" except as provided in the: (1) Money and Securities Additional Coverage; or (2) Employee Theft Additional Coverage; d. Contraband or property in the course of illegal transportation or trade; e. Land, whether or not resurfaced with stone, gravel or similar layer (including land on which the property is located), water, growing crops or lawns (other than lawns which are part of a vegetated roof), except as provided in SECTION I — PROPERTY, A. Coverage, 6. Coverage Extension, I. Paved Surfaces; f. Outdoor radio or television antennas (including satellite dishes) and their lead-in wiring, masts or towers, trees, shrubs or plants (other than trees, shrubs or plants which are part of a vegetated roof), all except as provided in SECTION I — PROPERTY, A. Coverage, 6. Coverage Extension, c. Outdoor Property; g. Watercraft (including motors, equipment and accessories); h. Accounts, bills, food stamps, other evidences of debt, accounts receivable or "valuable papers and records'; except as otherwise provided in this Coverage Form; I. "Computer equipment", which is permanently installed or designed to be permanently installed in any aircraft, watercraft, motortruck or other vehicle subject to motor vehicle registration. This paragraph does not apply to "computer equipment" while held as "stock"; J. "Electronic Data", except as provided under the Computer Equipment and Electronic Vandalism Additional Coverages. This paragraph does not apply to your "stock" of prepackaged "software' or to "electronic data" which is integrated in and operates or controls the building's elevator, lighting, heating, ventilation, air conditioning or security system; If. Animals, unless owned by others and boarded by you, or held for sale by you, or sold but not delivered, and only while inside of buildings; I. The cost of excavations, grading, backfilling, or filling; m. Bulkheads, pilings, piers, wharves or docks; n. Retaining walls that are used, in whole or in part, to contain water. o. "Computer Equipment", except as provided for under the: (1) Computer Equipment Additional Coverage; (2) Equipment Breakdown Additional Coverage; or 391-1003 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 5 of 81 (3) Electronic Vandalism Additional Coverage. p. Commercial tools and small equipment except as provided in SECTION I — PROPERTY, A. Coverage, 5. Additional Coverages, v. Commercial Tools and Small Equipment or for contractor's equipment specifically endorsed and scheduled. This does not apply to your commercial tools and small equipment permanently installed or exclusively used at the described premises; q. Employee tools and small equipment except as provided for in SECTION I — PROPERTY, A. Coverage, 5. Additional Coverages, v. Commercial Tools and Small Equipment or when added by separate endorsement; r. Bridges (unless the bridge is made a part of a covered Building), roadways, walks, patios or other paved surfaces, except as provided in SECTION I — PROPERTY, A. Coverage, 6. Coverage Extensions, I. Paved Surfaces; s. Underground pipes, flues or drains except as provided in SECTION I — PROPERTY, A. Coverage, 6. Coverage Extensions, m. Underground Pipes; and t. Personal Property while airborne or waterborne. 3. Covered Causes of Loss Risks of direct physical loss unless the loss is: a. Excluded in SECTION I — PROPERTY, B. Exclusions; or b. Limited in SECTION I — PROPERTY, A. Coverages, 4. Limitations 4. Limitations a. We will not pay for loss of or damage to: (1) Property that is missing, where the only evidence of the loss or damage is a shortage disclosed on taking inventory, or other instances where there is no physical evidence to show what happened to the property. This limitation does not apply to SECTION I — PROPERTY, A. Coverage, 5. Additional Coverages, s. Money and Securities. (2) Property that has been transferred to a person or to a place outside the described premises on the basis of unauthorized instructions. (3) The interior of any building or structure, or to personal property in the building or structure, caused by or resulting from rain, snow, sleet, ice, sand or dust, whether driven by wind or not, unless: (a) The building or structure first sustains damage by a Covered Cause of Loss to its roof or walls through which the rain, snow, sleet, ice, sand or dust enters; or (b) The loss or damage is caused by or results from thawing of snow, sleet or ice on the building or structure. (4) Lawns, trees, shrubs or plants which are part of a vegetated roof, caused by or resulting from: (a) Dampness or dryness of atmosphere or of soil supporting the vegetation; (b) Changes in or extremes of temperature; (c) Disease; (d) Frost or hail; or (a) Rain, snow, ice or sleet. b. We will not pay for loss of or damage to the following types of property unless caused by any of the "specified causes of loss" or building glass breakage: (1) Animals, and then only if they are killed or their destruction is made necessary. (2) Fragile articles such as glassware, statuary, marble, chinaware and porcelain, if broken. This restriction does not apply to: (a) Glass that is part of the exterior or interior of a building or structure; (b) Containers of property held for sale; or (c) Photographic or scientific instrument lenses. c. For loss or damage by "theft", the following types of property are covered only up to the limits shown: (1) $10,000 for furs, fur garments and garments trimmed with fur. (2) $10,000 for jewelry, watches, watch movements, jewels, pearls, precious and semi-precious stones, bullion, gold, silver, platinum and other precious alloys or metals. This limit does not apply to jewelry and watches worth $250 or less per item. 391-1003 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 6 of 81 5. Additional Coverages (b) Subject to paragraph (a) above, a. Debris Removal the amount we will pay for debris removal expense is limited to 25% (1) Subject to paragraphs (2), (3) and (4) of the sum of the deductible plus below, we will pay your expense to the amount that we pay for direct remove debris of Covered Property physical loss or damage to the and other debris that is on the Covered Property that has described premises, when such debris sustained loss or damage. is caused by or results from a However, if no Covered Property Covered Cause of Loss that occurs has sustained direct physical loss during the policy period. The or damage, the most we will pay expenses will be paid only if they are for removal of debris of other reported to us in writing within 180 property (if such removal is days of the date of direct physical loss covered under this Additional or damage. Coverage) is $5,000 at each (2) Debris Removal does not apply to location. costs to: (4) We will pay up to an additional (a) Remove debris of property of $25,000 for debris removal expense, yours that is not insured under this for each location, in any one Coverage Form, or property in occurrence of physical loss of or your possession that is not damage to Covered Property, if one or Covered Property; both of the following circumstances (b) Remove debris of property owned apply: or leased to the landlord of the (a) The total of the actual debris building where your described removal expense plus the amount premises are located, unless you we pay for direct physical loss or have a contractual responsibility damage exceeds the Limit of to insure such property and it is Insurance on the Covered insured under this Coverage Property that has sustained loss Form; or damage. (c) Remove any property that is (b) The actual debris removal Property Not Covered except as expense exceeds 25% of the sum provided under the Outdoor of the deductible plus the amount Property Coverage Extension; that we pay for direct physical loss (d) Remove property of others of a of or damage to the Covered type that would not be Covered Property that has sustained loss Property under this Coverage or damage. Form; Therefore, if paragraphs (a) and/or (b) (e) Remove deposits of mud or earth above apply, our total payment for from the grounds of the described direct physical loss or damage and premises; debris removal expense may reach but will never exceed the Limit of (f) Extract "pollutants" from land or Insurance on the Covered Property water; or that has sustained loss or damage, (g) Remove, restore or replace plus $25,000. polluted land or water. (5) Examples (3) Subject to the exceptions in paragraph Example #1 (4) below, the following provisions apply: Limit of Insurance $ 90,000 (a) The most that we will pay for the Amount of Deductible $ 500 total of direct physical loss or Amount of Loss $ 50,000 damage plus debris removal Amount of Loss Payable $ 49,500 expense is the Limit of Insurance applicable to the Covered ($50,000 — $500) Property that has sustained loss Debris Removal Expense $ 10,000 or damage. Debris Removal Expense 391-1003 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 7 of 81 Payable $ 10,000 debris removal expense is not ($10,000 is 20% of $50,000) covered. b. Preservation of Property The debris removal expense is less than 25% of the sum of the loss If it is necessary to move Covered payable plus the deductible. The sum Property from the described premises to of the loss payable and the debris preserve it from loss or damage by a removal expense ($49,500 + $10,000 Covered Cause of Loss, we will pay for = $59,500) is less than the Limit of any direct physical loss of or damage to Insurance. Therefore the full amount that property: of debris removal expense is payable (1) While it is being moved or while in accordance with the terms of temporarily stored at another location; paragraph(3)above. and Example #2 (2) Only if the loss or damage occurs Limit of Insurance $ 90,000 within 90 days after the property is Amount of Deductible $ 500 first moved. This Additional Coverage does not Amount of Loss $ 80,000 increase the applicable Limit of Insurance. Amount of Loss Payable $ 79,500 c. Fire Department Service Charge ($80,000 — $500) When the fire department is called to save Debris Removal Expense $ 40,000 or protect Covered Property from a Debris Removal Expense Covered Cause of Loss, we will pay up to Payable $25,000 for service at each premises described in the Declarations, unless a Basic Amount $ 10,500 higher Limit of Insurance is shown in the Additional Amount $ 25,000 Declarations. Such limit is the most we will pay regardless of the number of The basic amount payable for debris responding fire departments or fire units, removal expense under the terms of and regardless of the number or type of paragraph (3) above is calculated as services performed. follows: $80,000 ($79,500 + $500) x .25 = $20,000 (capped at $10,500). This Additional Coverage applies to your The cap applies because the sum of liability for fire department services the loss payable ($79,500) and the charges: basic amount payable for debris (1) Assumed by contract or agreement removal expense ($10,500) cannot prior to loss; or exceed the Limit of Insurance (2) Required by local ordinance. ($90,000). d. Collapse The additional amount payable for debris removal expense is provided in The coverage provided under this 9 p accordance with the terms of Additional Coverage — Collapse applies paragraph (4) above, because the only to an abrupt collapse as described debris removal expense ($40,000) and limited in paragraphs (1), (2), (3), (4), exceeds 25% of the loss payable plus (5), (6) and (7) below. the deductible ($40,000 is 50% of (1) For the purpose of this Additional $80,000), and because (from Coverage — Collapse, abrupt collapse paragraph (3) (a)) the sum of the loss means an abrupt falling down or payable and debris removal expense caving in of a building or any part of a ($79,500 + $40,000 = $119,500) building with the result that the would exceed the Limit of Insurance building or part of the building cannot ($90,000). The additional amount of be occupied for its intended purpose. covered debris removal expense is (2) We will pay for direct physical loss of $25,000, the maximum payable under or damage to Covered Property, paragraph (4) above. Thus the total caused by abrupt collapse of a payable for debris removal expense in building or any part of a building that this example is $35,500; $4,500 of the is insured under this policy or that contains Covered Property insured 391.1003 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 8 of 81 under this policy, if such collapse is caused by one or more of the following: (a) Building decay that is hidden from view, unless the presence of such decay is known to any insured prior to collapse; (b) Insect or vermin damage that is hidden from view, unless the presence of such damage is known to any 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; or (d) Use of defective material or methods in construction, remodeling or renovation if the abrupt collapse occurs after the construction, remodeling or renovation is complete, but only if the collapse is caused in part by: (i) A cause of loss listed in paragraphs (a) or (b) above of this Additional Coverage; (ii) One or more of the "specified causes of loss"; (iii) Breakage of building glass; (iv) Weight of people or personal property; or (v) Weight of rain that collects on a roof. (3) This Additional Coverage — Collapse does not apply to: (a) A building or any part of a building that is in danger of falling down or caving in; (b) A part of a building that is standing, even if it has separated from another part of the building; or (c) A building that is standing or any part of a building that is standing, even if it shows evidence of cracking, bulging, sagging, bending, leaning, settling, shrinkage or expansion. (4) With respect to the following property: (a) Awnings; (b) Gutters and downspouts; (c) Yard Fixtures; (d) Outdoor swimming pools; (e) Beach or diving platforms or appurtenances; (f) Retaining walls; and (g) Walks, roadways and other paved surfaces; if an abrupt collapse is caused by a cause of loss listed in paragraph (2), subparagraphs (a), (b), (c) and (d) of this Additional Coverage, we will pay for loss or damage to that property only if such loss or damage is a direct result of the abrupt collapse of a building insured under this Coverage Form and the property is Covered Property under this Coverage Form. (5) If personal property abruptly falls down or caves in and such collapse is not the result of abrupt collapse of a building, we will pay for loss or damage to Covered Property caused by such collapse of personal property only if: (a) The abrupt collapse of personal property was caused by a cause of loss listed in paragraph (2), subparagraphs (a), (b), (c) and (d) of this Additional Coverage; (b) The personal property which collapses is inside a building; and (c) The property which collapses is not of a kind listed in paragraph (4) above, regardless of whether that kind of property is considered to be personal property or real property. The coverage stated in paragraph (5) does not apply to personal property if marring and/or scratching is the only damage to that personal property caused by the collapse. (6) This Additional Coverage — Collapse does not apply to personal property that has not abruptly fallen down or caved in, even if the personal property shows evidence of cracking, bulging, sagging, bending, leaning, settling, shrinkage or expansion. (7) This Additional Coverage — Collapse will not increase SECTION I — PROPERTY, C. Limits of Insurance. (8) The term Covered Cause of Loss includes the Additional Coverage — 391-1003 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 9 of 81 Collapse as described and limited in (ii) The area within 1,000 feet of paragraphs (1), (2), (3), (4), (5), (6) the building or within 1,000 and (7) above. feet of the premises described e. Water Damage, Other Liquids, Powder in the Declarations, whichever or Molten Material Damage distance is greater (with respect to loss of or damage If loss or damage caused by or resulting to personal property in the from covered water or other liquid, powder o open or personal property in a or molten material damage loss occurs, vehicle); and we will also pay the cost to tear out and replace any part of the building or (iii) Any area within the building or structure to repair damage to the system at the described premises, if or appliance from which the water or other that area services, or is used substance escapes. to gain access to, the portion of the building which you rent, We will not pay the cost to repair any lease or occupy. defect that caused the loss or damage; but we will pay the cost to repair or (b) We will only pay for loss of replace damaged parts of fire Business Income that you sustain extinguishing equipment if the damage: during the "period of restoration" (1) Results in discharge of any substance and that occurs within the designated, consecutive number from an automatic fire protection of months found on the system; or Declarations Page beginning (2) Is directly caused by freezing. immediately after the date of f. Business Income direct physical loss or damage. For purposes of this insurance, all When Business Income Coverage is recoverable loss ceases when the provided under this policy: "period of restoration" ends. (1) Business Income (c) Business Income means the: (a) We will pay for the actual loss of (1) Net Income (Net Profit or Loss Business Income you sustain due before income taxes) that to the necessary "suspension" of would have been earned or your "operations" during the incurred if no physical loss or "period of restoration". The damage had occurred, but not "suspension" must be caused by including any Net Income that direct physical loss of or damage would likely have been earned to a described premises shown in as result of an increase in the the Declarations and for which a volume of business due to Business Income Limit of favorable business conditions Insurance is shown in the caused by the impact of the Declarations. The loss or damage Covered Cause of Loss on must be caused by or result from customers or on other a Covered Cause of Loss. businesses; With respect to loss of or damage (ii) Continuing normal operating to personal property in the open or expenses incurred, including personal property in a vehicle, the "payroll expenses". However, described premises include the if your business is not area within 1,000 feet of such generating any income premises. because you are primarily in With respect to the requirements research or development or set forth in the preceding have not yet brought your paragraph, if you occupy only part product to market, your of a building, your premises mean: continuing normal operating expenses, including 'payroll The portion of the building (1) P g expenses", will not be offset which you rent, lease or by the Net Loss; and occupy; (iii) "Rental Value". 391-1003 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 10 of 81 For manufacturing risks, Net damage at the described Income includes the net sales premises caused by or resulting value of production. from any Covered Cause of Loss. (2) Extended Business Income (b) Extended Business Income — If no Business Income Coverage is Rental Value provided under this Coverage Form, If the necessary "suspension" of then there is no Extended Business your "operations" produces a Income Coverage afforded under this "rental value" loss payable under Coverage Form. this Coverage Form, we will pay (a) Extended Business Income — for the actual loss of "rental value" Other Than Rental Value you incur during the period that: If the necessary "suspension" of (1) Begins the date property is your "operations" produces a actually repaired, rebuilt or Business Income loss payable replaced and tenantability is under this Coverage Form, we will restored; and pay for the actual loss of Business (ii) Ends the earlier of: Income you incur during the 1) The date you could period that: restore tenant occupancy, (1) Begins on the date property with reasonable speed, to (except "finished stock") is the level which would actually repaired, rebuilt or generate the "rental replaced (to the extent value" that would have necessary to resume existed if no direct "operations") and "operations" physical loss or damage are resumed; and had occurred; or (11) Ends on the earlier of: 2) The number of 1) The date you could consecutive days shown restore your "operations", in the Additional Property with reasonable speed, to Coverage Schedule for the level which would Extended Business generate the Business Income after the date Income amount that determined in (b) would have existed if no Extended Business direct physical loss or Income — Rental Value, damage had occurred; or paragraph (i) above. 2) The number of However, Extended Business consecutive days shown Income does not apply to loss of in the Additional Property "rental value" incurred as a result Coverage Schedule for of unfavorable business Extended Business conditions caused by the impact Income after the date of the Covered Cause of Loss in determined in (a) the area where the described Extended Business premises are located. Income — Other Than Loss of "rental value" must be Rental Value, paragraph caused by direct physical loss or (i) above. damage at the described However, Extended Business premises caused by or resulting Income does not apply to loss of from any Covered Cause of Loss. Business Income incurred as a (III) We will reduce the amount of result of unfavorable business your: conditions caused by the impact Business Income loss, other of the Covered Cause of Loss in than Extra Expense, to the the area where the described extent you can resume your premises are located. "operations", in whole or in Loss of Business Income must be part, by using damaged or caused by direct physical loss or undamaged property 391-1003 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 11 of 81 (including merchandise or "stock") at the described premises or elsewhere. (iv) If you do not resume "operations", or do not resume "operations" as quickly as possible, we will pay based on the length of time it would have taken to resume "operations" as quickly as possible. This Additional Coverage is not subject to SECTION I — PROPERTY, C. Limits of Insurance. g. Extra Expense When Business Income Coverage is provided under this Coverage Form: (1) We will pay the necessary Extra Expense you incur during the "period of restoration" that you would not have incurred if there had been no direct physical loss or damage to property at the described premises. The loss or damage must be caused by or result from a Covered Cause of Loss. With respect to loss of or damage to personal property in the open or personal property in a vehicle, the described premises include the area within 1,000 feet of such premises. With respect to the requirements set forth in the preceding paragraph, if you occupy only part of a building, your premises mean: (a) The portion of the building which you rent, lease or occupy; (b) The area within 1,000 feet of the building or within 1,000 feet of the premises described in the Declarations, whichever distance is greater (with respect to loss of or damage to personal property in the open or personal property in a vehicle); and (c) Any area within the building or at the described premises, if that area services, or is used to gain access to, the portion of the building which you rent, lease or occupy. (2) Extra Expense means expense incurred: (a) To avoid or minimize the "suspension" of business and to continue "operations": (1) At the described premises; or (ii) At replacement premises or at temporary locations, including relocation expenses, and costs to equip and operate the replacement or temporary locations. (b) To minimize the "suspension" of business if you cannot continue "operations". (c) To: (1) Repair or replace any property; or (ii) Research, replace or restore the lost information on damaged "valuable papers and records" to the extent it reduces the amount of loss that otherwise would have been payable under this Additional Coverage or SECTION I — PROPERTY, A. Coverage, S. Additional Coverage, f. Business Income. With regard to paragraph (1) above, we will pay only for those expenses necessary to expedite the repair or replacement of the property. Under this provision we will not pay for any portion of the ordinary and expected cost to actually repair or replace property. (3) We will only pay for Extra Expense that occurs within 12 consecutive months beginning immediately after the date of direct physical loss or damage. (4) We will reduce the amount of your Extra Expense loss payment to the extent you can return "operations" to normal and discontinue such Extra Expense. (5) If you do not resume "operations", or do not resume "operations" as quickly as possible, we will pay based on the length of time it would have taken to resume "operations" as quickly as possible. This Additional Coverage is not subject to SECTION I — PROPERTY, C. Limits of Insurance. h. Pollutant Clean -Up and Removal We will pay your expense to extract "pollutants" from land or water at the 391-1003 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 12 of 81 described premises if the discharge, dispersal, seepage, migration, release or escape of the "pollutants" is caused by or results from a Covered Cause of Loss that occurs during the policy period. The expenses will be paid only if they are reported to us in writing within 180 days of the date on which the Covered Cause of Loss occurs. This Additional Coverage does not apply to costs to test for, monitor or assess the existence, concentration or effects of "pollutants". But we will pay for testing which is performed in the course of extracting the "pollutants" from the land or water. time of the first action of civil authority that prohibits access to the described premises and will apply for a period of up to four consecutive weeks from the date on which such coverage began. Civil Authority Coverage for Extra Expense will begin immediately after the time of the first action of civil authority that prohibits access to the described premises and will end: (a) Four consecutive weeks after the date of that action; or (b) When your Civil Authority Coverage for Business Income ends; The most we will pay for each location whichever is later. under this Additional Coverage is $25,000 (3) The definitions of Business Income for the sum of all such expenses arising and Extra Expense contained in out of Covered Causes of Loss occurring SECTION I — PROPERTY, A. during each separate 12 month period of Coverage, 5. Additional Coverages, this policy. f. Business Income; and g. Extra i. Civil Authority Expense also apply to this Additional Coverage. When Business Income Coverage is provided under this Coverage Form: j• Money Orders and Counterfeit Money (1) When a Covered Cause of Loss (1) We will pay for loss resulting directly causes damage to property other than from your having accepted in good property at the described premises, faith, in exchange for merchandise, we will pay for the actual loss of "money" or services: Business Income you sustain and (a) Money orders issued by any post necessary Extra Expense caused by office, express company or action of civil authority that prohibits "financial institution" that are not access to the described premises due paid upon presentation; or to direct physical loss or damage to (b) "Counterfeit money" that is property within one mile of the acquired during the regular course described premises, provided that of business. both of the following apply: (a) Access to the area immediately (2) Under this Additional Coverage, all surrounding the damaged loss: property is prohibited by civil (a) Caused by one or more persons; authority as a result of the or damage, and the described (b) Involving a single act or series of premises are within that area but related acts; are not more than one mile from is considered one occurrence. the damaged property; (b) The action of civil authority is (3) The most we will pay for any loss taken in response to dangerous under this Additional Coverage is $5,000. physical conditions resulting from the damage or continuation of the k. Forgery or Alteration Covered Cause of Loss that (1) We will pay for loss resulting directly caused the damage, or the action from forgery or alteration of any: is taken to enable a civil authority (a) Check, draft, promissory note, bill to have unimpeded access to the of exchange or similar written damaged property. promises of payment in "money" (2) Civil Authority Coverage for Business that you or your agent has issued, Income will begin 72 hours after the or that was issued by someone 391-1003 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 13 of 81 who impersonates you or your zoning or land use agent; and requirements at the described (b) Credit, debit or charge slips or premise; documents, including signatures (ii) Is in force at the time of loss; or the entry of a Personal and Identification Number (PIN) into a (!!!)Was not in force at the time "payment processing device' the involved construction was required with the use of any credit, completed. debit, or charge card issued to you or any "employee" for a under this Additional But covers 9 business purposes. Coverage applies only in (2) Under this Additional Coverage, all response to the minimum requirements of the ordinance or loss: law. Losses and costs incurred in (a) Caused by one or more persons; complying with recommended or actions or standards that exceed (b) Involving a single act or series of actual requirements are not related acts; covered under this Additional Coverage. is considered one occurrence. (b) The building sustains direct (3) If you are sued for refusing to pay the physical damage: check, draft, promissory note, bill of exchange or similar written promises (i) That is covered under this of payment in "money", on the basis Coverage Form and as a that it has been forged or altered, and result of such damage, you you have our written consent to are required to comply with defend against the suit, we will pay for the ordinance or law, or any reasonable legal expenses that (ii) That is covered under this you incur in that defense. Coverage Form and direct (4) For purposes of this Additional physical damage that is not Coverage, check includes a substitute covered under this Coverage check as defined by the United States Form and as a result of the Congress in the Check Clearing for building damage in its the 21" Century Act and will be entirety, you are required to treated the same as the original it comply with the ordinance or replaced. law. (5) The most we will pay for any loss, (if!) But if the damage is not including legal expenses, under this covered under this Coverage Additional Coverage is $25,000, Form and such damage is the unless a higher Limit of Insurance is subject of the ordinance or shown in the Schedule of Amended law, then there is no coverage Limits of Insurance. under this Additional Coverage even if building has I. Ordinance or Law also sustained covered direct (1) This Additional Coverage applies only physical damage. to buildings insured on a replacement (c) In the situation described in (2) cost basis. Application of Coverages, (2) Application of Coverages: paragraph (b), subparagraph (ii) The coverages provided under this above, we will not pay the full Additional Coverage applies only if amount of loss otherwise payable paragraphs (a) and (b) below, are under the terms of coverages for satisfied and are then subject to the Coverage for Loss to the qualifications found in (c) below. Undamaged Portion of the Building, Demolition Cost (a) The ordinance or law: Coverage or Increased Cost of (i) Regulates the demolition, Construction Coverage. Instead, construction or repair of we will pay a proportion of such buildings, or establishes loss, meaning the proportion that 391-1003 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 14 of 81 the covered direct physical Declarations as applicable to the damage bears to the total direct covered building. Coverage for physical damage. Paragraph (7) Loss to the Undamaged Portion of of this coverage provides an the Building does not increase the example of this procedure. Limit of Insurance. However, if the covered direct (b) Demolition Cost Coverage physical damage alone would have With respect to the building that resulted in a requirement to comply has sustained covered direct with the ordinance or law, then we will physical damage, we will pay the pay the full amount of the loss cost to demolish and clear the site otherwise payable under the terms of of the undamaged parts of the Coverages for Loss to the same building, as a consequence Undamaged Portion of the Building, of a requirement to comply with an Demolition Cost Coverage or ordinance or law that requires Increased Cost of Construction demolition of such undamaged Coverage under this Additional property. Coverage. (3) We will not pay under this Additional SECTION I — PROPERTY, E. Property Loss Conditions, 5. Coverage for: Loss Payment, y paragraph d. (a) Enforcement of or compliance does not apply to Demolition Cost with any ordinance or law which Coverage. requires the demolition, repair, (c) Increased Cost of Construction replacement, reconstruction, remodeling or remediation of With respect to the building that property due to contamination by has sustained covered direct "pollutants" or due to the physical damage, we will pay the presence, growth, proliferation, increased cost to: spread or any activity of "fungi", (i) Repair or reconstruct wet rot or dry rot; or damaged portions of that (b) The costs associated with the building; and/or enforcement of or compliance with (ff) Reconstruct or remodel any ordinance or law which undamaged portions of that requires any insured or others to building, whether or not test for, monitor, clean up, demolition is required; remove, contain, treat, detoxify or when the increased cost is a neutralize, or in any way respond consequence of a requirement to to, or assess the effects of "pollutants", "fungi", comply with the minimum wet rot or dry standards of the ordinance or law. rot. (4) Coverage However: (a) Coverage for Loss to the (f) This coverage applies only if Undamaged Portion of the the restored or remodeled Building property is intended for similar occupancy as the current With respect to the building that property, unless such has sustained covered direct occupancy is not permitted by physical damage, we will pay zoning or land use ordinance under this Additional Coverage for or law. the loss in value of the (ii) We will not pay for the undamaged portion of the building increased cost of construction as a consequence of a if the building is not repaired, requirement to comply with an reconstructed or remodeled. ordinance or law that requires demolition of undamaged parts of SECTION I — PROPERTY, E. the same building. Coverage for Property Loss Conditions, 5. Loss to the Undamaged Portion of Loss Payment, paragraph d. the Building is included within the does not apply to the Increased Limit of Insurance shown in the Cost of Construction Coverage. 391-1003 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 15 of 81 (5) Loss Payment actually spend to demolish (a) Loss Payment provisions (b), (c), and clear the site of the (d) and (a) below are subject to described premises. the apportionment procedure set (ii) Loss payment under forth in above Application of Increased Cost of Coverages, paragraph (2)(c). Construction Coverage will be (b) When there is a loss in value of an determined as follows: undamaged portion of the building 1) We will not pay for the to which Coverage for Loss to the increased cost of Undamaged Portion of the construction until the Building applies, the loss payment property is actually for that building, including repaired or replaced at damaged and undamaged the same or another portions, will be determined as premises; and follows: 2) Unless the repairs or (1) If the property is repaired or replacement is made as replaced on the same or soon as reasonably another premise, we will not possible after the loss or pay more than the lesser of: damage, not to exceed 1) The amount you actually two years. We may spend to repair, rebuild or extend this period in reconstruct the building, writing during the two but not for more than the years. amount it would cost to (iii) If the building is repaired or restore the building on the replaced at the same same premises and to the premises, or if you elect to same height, floor area, rebuild at another premises, style and comparable the most we will pay for the quality of the original Increased Cost of property insured; or Construction Coverage is the 2) The Limit of Insurance lesser of: shown in the Declarations 1) The increased cost of as applicable to the construction at the same covered building. premises; or (ii) If the property is not repaired 2) The Limit of Insurance or replaced. We will not pay described in paragraph more than the lesser of: (d) below. 1) The actual cash value of (iv) If the ordinance or law the building at the time of requires relocation to another loss; or premise, the most we will pay 2) The Limit of Insurance for the increased cost of shown in the Declarations construction is the lesser of: as applicable to the 1) The increased cost of covered building. construction at the new (c) The most we will pay for the total premises; or of all covered losses for 2) The Limit of Insurance Demolition Cost Coverage and described in paragraph Increased Cost of Construction is (d) below. the Limit of Insurance shown in (d) The most we will pay for the total paragraph (d) below. Subject to of all covered losses for this combined Limit of Insurance, Demolition Cost and Increased the following loss payment Cost of Construction for each provisions apply: building described in the (i) For Demolition Cost Declarations is $5,000 or the Coverage, we will not pay for amount shown in the Additional more than the amount you Property Schedule. If a damaged 391-1003 08 16 Includes copyrighted material of Insurance services Office, Inc., with its permission. Page 16 of 81 building(s) is covered under a Blanket Limit of Insurance and the Blanket Limit of Insurance applies to more than one building or item of property, then the most we will under this Additional Coverage, for each building, is $5,000, or the amount shown in the Additional Property Coverage Schedule. (6) Under this coverage, we will not pay for loss due to any ordinance or law that: (a) You were required to comply with before the loss, even if the building was undamaged; and (b) You failed to comply with. (7) Example of Proportionate Loss Payment for Ordinance or Law Coverage losses (procedures as set forth in paragraph (2)(c) of this Additional Coverage). Assume: • Wind is a Covered Cause of Loss; "Flood" is an excluded Cause of Loss • The building has value of $200,000 • The total direct physical damage to the building: $100,000; • The ordinance or law in this jurisdiction is enforced when building damage equals or exceeds 50% of the building's value; • Portion of direct physical damage that is covered (caused by wind): $30,000; • Portion of direct physical damage that is not covered (caused by "flood"): $70,000; and Loss under Increased Cost of Construction: $60,000 Step 1: Determine the proportion that the covered direct physical damage bears to the total direct physical damage. $30,000 divided by $100,000 = .30 Step 2: Apply that portion to the Ordinance or Law loss. $60,000 x .30 = $18,000 In this example, the most we will pay under this Additional Coverage for the Increased Cost of Construction loss is $18,000, subject to the applicable Limit of Insurance and any other applicable provisions. Note: The same procedure applies to losses under Loss to the Undamaged Portion of the Building and Demolition Cost of this Additional Coverage. m. Business Income from Dependent Properties When Business Income Coverage is provided under this Coverage Form: (1) We will pay for the actual loss of Business Income you sustain due to direct physical loss or damage at the premises of a "dependent property" caused by or resulting from any Covered Cause of Loss. However, this Additional Coverage does not apply when the only loss at the premises of a "dependent property' is loss or damage to "electronic data", including destruction or corruption of "electronic data". If the "dependent property" sustains loss or damage to "electronic data' and other property, coverage under this Additional Coverage will not continue once the other property is repaired, rebuilt or replaced. (2) The most we will pay under this Additional Coverage is $5,000 per occurrence, regardless of the number of "dependent properties" affected. (3) We will reduce the amount of your Business Income loss, other than Extra Expense, to the extent you can resume "operations", in whole or in part, by using any other available: (a) Source of materials; or (b) Outlet for your products. (4) If you do not resume "operations", or do not resume "operations" as quickly as possible, we will pay based on the length of time it would have taken to resume "operations" as quickly as possible. (5) The coverage period for Business Income under this Additional Coverage: (a) Begins 72 hours after the time of direct physical loss or damage caused by or resulting from any Covered Cause of Loss at the premises of the "dependent property'; and 391-1003 08 16 Includes copyrighted material of Insurance services Office, Inc., with its permission. Page 17 of 81 (b) Ends on the date when the hydrostatic testing if needed) if property at the premises of the they are discharged on or within "dependent property" should be 1,000 feet of the described repaired, rebuilt or replaced (to premises; and the extent necessary to resume "operations') (b) For loss or damage to Covered with reasonable Property if such loss or damage is speed and similar quality or 12 the result of an accidental months immediately following the discharge of chemicals from a fire date of direct physical loss or extinguisher or a fire extinguishing damage, whichever is shorter. system. (6) The Business Income coverage (2) No coverage will apply if the fire period, as stated in paragraph (4) extinguishing system is discharged above, does not include any increased during installation or testing. period required due to the enforcement of or compliance with (3) The most we will pay under this any ordinance or law that: Additional Coverage is $25,000 in any (a) Regulates the construction, use or one occurrence. The deductible does not apply to these expenses. repair, or requires the tearing down of any property; or p. Employee Theft including ERISA (b) Requires any insured or others to Compliance test for, monitor, clean up, (1) We will pay for loss or damage to remove, contain, treat, detoxify or "money", "securities" and "other neutralize, or in any way respond property" resulting directly from "theft" to, or assess the effects of committed by an "employee", clergy, "pollutants". or any non -compensated person whether identified or not, acting alone The expiration date of this Coverage or in collusion with other persons. Form will not reduce the Business Income coverage period. For the purposes of this Additional (7) The definition of Business Income Coverage, "theft" shall also include "forgery". contained in the Business Income Additional Coverage also applies to (2) This Additional Coverage terminates this Business Income from Dependent as to any "employee" as soon as: Properties Additional Coverage. (a) You; or In. Glass Expenses (b) Any of your partners, "members", When glass is damaged from a Covered "managers", officers, directors or Cause of Loss we will pay for your trustees not in collusion with the expenses incurred to: "employee"; (1) Put up temporary plates or board up "Discovered" the "theft" or any other openings if repair or replacement of dishonest act committed by the damaged glass is delayed; "employee" whether before or after (2) Replace lettering, artwork, sensors or becoming employed by you. other items permanently affixed to, or (3) Under this Additional Coverage, all a part of, the damaged glass; and loss: (3) Remove or replace obstructions when (a) Caused by one or more persons; repairing or replacing glass that is part or of a building. This does not include (b) Involving a single act or series of removing or replacing window related acts; displays. is considered one occurrence. o. Fire Protection Equipment Recharge (4) We will pay only for loss you sustain (1) We will pay: through acts committed or events (a) The cast of recharging or occurring anytime which is replacing, whichever is less, your "discovered" by you: fire extinguishers and fire (a) During the policy period; or extinguishing systems (including 391-1003 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 18 of 81 (b) No later than 1 year from the date (1) Whether acting alone or in of termination or cancellation of collusion with other persons; this insurance. However this or extended period to "discover' loss (ii) While performing services for terminates immediately upon the you or others; effective date of any other insurance obtained by you, Except when covered under this whether from us or anotherCoverage. Additional insurer, replacing in whole or in (d) Loss that is an indirect result of an part the coverage afforded under occurrence covered by this this Additional Coverage, whether Additional Coverage, including, or not such other insurance but not limited to, loss resulting provides coverage for loss from: sustained prior to its effective (i) Your inability to realize date. income that you would have (5) You may extend this coverage to realized had there been no apply to loss caused by any loss of or damage to "money", "employee" while temporarily outside "securities" or "other the Coverage Territory for a period of property"; not more than 90 days. (ii) Payment of damages of any (6) The most we will pay for all loss type for which you are legally resulting directly from an occurrence liable; is $10,000 or the Limit of Insurance (iii) Payment of costs, fees or shown in the Additional Property other expenses you incur in Coverage Schedule. Regardless of establishing either the the number of years this policy existence or the amount of remains in force or the number of loss under this Additional premiums paid, no Limit of Insurance Coverage. cumulates from year to year. (7) Special Employee Theft Exclusions (e) Fees, costs and expenses incurred by you which are related We will not pay for: to any legal action. (a) Loss resulting from "theft" or any (f) Loss or that part of any loss, the other dishonest act committed by: proof of which as to its existence (I) You; or or amount is dependent upon: (!I) Any of your partners or (I) An inventory computation; or "members"; (it) A profit and loss computation. Whether acting alone or in However, where you establish collusion with other persons. wholly apart from such (b) Loss caused by an "employee" if "employee" computations that you have sustained a loss, then you may the has also 'theft" offer your inventory records and committed or any other actual physical count of inventory dishonest act prior to the effective in support of the amount of loss date of this policy and you or any claimed. of your partners, "managers', officers, directors or trustees, not (g) Loss resulting from trading, in collusion with the "employee", whether in your name or in a learned of that "theft" or dishonest genuine or fictitious account. act prior to the policy period (h) Loss resulting from fraudulent or shown in the Declarations. dishonest signing, issuing, (c) Loss resulting from "theft" or any canceling or failing to cancel, a other dishonest act committed by warehouse receipt or any papers any of your "employees", connected with it. "managers", directors, trustees or (i) Loss resulting from: authorized representatives: (1) The unauthorized disclosure of your confidential 391-1003 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 19 of 81 information including, but not limited to, patents, trade secrets, processing methods or customer lists; or (!I) The unauthorized use or disclosure of confidential information of another person or entity which is held by you including, but not limited to, financial information, personal information, credit card information or similar non public information. (8) Welfare and Pension Plan ERISA Compliance (a) The "employee benefit plan" (hereafter referred to as Plan) is included as an insured under this Additional Coverage. (b) If any Plan is insured jointly with any other entity under this Additional Coverage, you or the Plan Administrator must select a Limit of Insurance for this Additional Coverage that is sufficient to provide a Limit of Insurance for each Plan that is at least equal to that required if each Plan were separately insured. (c) With respect to loss sustained or "discovered" by any such Plan, paragraph (1) above, of this Additional Coverage is replaced by the following: (1) We will pay for loss of or damage to "funds" and "other property" resulting directly from fraudulent or dishonest acts committed by an "employee", whether identified or not, acting alone or in collusion with other persons. (d) If the first Named Insured is an entity other than a Plan, any payment we make for loss sustained by any Plan will be made to the Plan sustaining the loss. (a) If two or more Plans are insured under this Additional Coverage, any payment we make for loss: (1) Sustained by two or more Plans; or (it) Of commingled "funds" or "other property' of two or more Plans; Resulting from an occurrence, will be made to each Plan sustaining loss in the proportion that the Limit of Insurance required for each Plan bears to the total Limit of Insurance of all Plans sustaining loss. (f) The deductible does not apply to this Additional Coverage. q. Rewards — Arson, Theft and Vandalism (1) We will reimburse you for payment of any reward offered on your behalf and for information that leads to the arrest and conviction of the person or persons responsible for: (a) Arson; (b) "Theft"' or (c) Vandalism to Covered Property. (2) The arrest or conviction must involve a covered loss caused by arson, "theft" or vandalism. (3) The most we will pay under this Additional Coverage is $10,000 unless a higher Limit of Insurance is shown in the Additional Property Coverage Schedule. The amount we pay is not increased by the number of persons involved in providing the information. (4) The amount payable under this Additional Coverage is additional insurance. (5) The deductible does not apply to this Additional Coverage. r. Computer Equipment (1) We will pay for direct physical loss of or damage to the following Covered Property which is your property or property in your care, custody or control while at or away from the described premises when loss or damage is caused by or resulting from a Covered Cause of Loss: (a) "Computer equipment"; and (b) Programming documentation and instruction manuals. (2) We will pay for the actual loss of Business Income you sustain as described in the Business Income Additional Coverage and we will pay for any necessary Extra Expense you incur during the "period of restoration" 391-1003 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 20 of 81 as described in the Extra Expense Additional Coverage. (3) In the event of a loss of or damage to "Computer equipment" by a Covered Cause of Loss, we will pay your costs to modify or replace undamaged "hardware" or "software" when it: (a) Was dependent on the damaged "hardware" or "software" prior to the covered loss; and (b) Is not compatible with the "hardware" or "software' that is replacing the property that was involved in the covered loss. We will only pay for your costs to modify or replace undamaged "hardware" or "software" at a premises described in the Declarations. The most we will pay for your costs covered in any one occurrence is $10,000. (4) We will not pay for any loss of or damage to the following property: (a) Property you rent, loan or lease to others while it is away from the described premises; (b) Property you hold for sale, distribute or manufacture except as provided in SECTION I — PROPERTY, A. Coverage, 1. Covered Property, paragraph b.; or (c) "Software" that cannot be duplicated or replaced with similar property of equal quality and/or substantially similar functionality. (5) If we provide Building coverage only, we will only pay for loss to "computer equipment' that service building operations at the described premises and are located at the described premises. (6) The most we will pay for any loss or damage to property described in paragraphs (1) and (2) above, is $35,000 unless a higher Limit of Insurance is shown in the Additional Property Coverage Schedule for Computer Equipment. The most we will pay for Extra Expense is $5,000 unless a higher Limit of Insurance is shown in the Additional Property Coverage Schedule for Extra Expense. (7) The following in SECTION I — PROPERTY, B. Exclusions, paragraph 1. do not apply to this Additional Coverage: (a) b. Earth Movement; and (b) g. Water. (8) Special Computer Equipment Exclusions We will not pay for loss or damage to portable electronic devices when caused by, resulting from, or arising out of "theft' or unexplained loss when the property is checked baggage with a carrier for transit. Portable electronic devices includes laptops, tablets, e- readers, smartphones or other lightweight, hand-held or wearable devices capable of storing, retrieving and processing data. s. Money and Securities (1) We will pay for loss of "money" and "securities": (a) Inside a building at the described premises or "financial institution" resulting directly from "theft' committed by a person present inside a building at the described premises or "financial institution"; (b) Inside a building at the described premises or "financial institution" resulting directly from disappearance or destruction; or (c) Outside of a building at or away from the described premises in the care and custody of a "messenger" or an armored motor vehicle company resulting directly from "theft', disappearance or destruction. (2) For the purposes of this Additional Coverage, all loss: (a) Caused by one or more persons; or (b) Involving a single act or series of related acts; is considered one occurrence. (3) You must keep records of all "money" and "securities" so we can verify the amount of any one loss or damage. (4) The amount payable under this Additional Coverage is additional insurance. 391-1003 08 16 Includes copyrighted material of Insurance services Office, Inc., with its permission. Page 21 of 81 It. (5) The most we will pay for loss in any one occurrence is: (a) $10,000 or the amount shown in the Additional Property Coverage Schedule while: (1) Inside a building at the described premises; or (ii) Within a "financial institution" in the Coverage Territory; and (b) $5,000 or the amount shown in the Additional Property Coverage Schedule while outside of a building at the described premises or when away from the described premises in the Coverage Territory. (6) Special Money and Securities Exclusions We will not pay for loss: (a) Resulting from accounting or arithmetic errors or omissions; (b) Resulting from giving or surrendering of property in any exchange or purchase; (c) Of property contained in any money -operated device unless the amount of "money" deposited in it is recorded by a continuous recording instrument in the device; or (d) Loss or damage to "money" and "securities" following and directly related to the use of any computer to fraudulently cause a transfer of that property. Tenant Signs (Tenants only) (1) This Additional Coverage is available only when the Named Insured is a tenant and a Limit of Insurance is shown in the Declarations Page for Business Personal Property. We will pay for direct physical loss of or damage to all signs: (a) Owned by you; or (b) Owned by others but in your care, custody or control; when loss or damage is caused by or resulting from a Covered Cause of Loss. (2) SECTION I — PROPERTY, A. Coverage, 3. Covered Causes of Loss does not apply to this Additional Coverage and SECTION I — PROPERTY, B. Exclusions, paragraph 1. does not apply to this Additional Coverage except for the following: (a) c. Government Action; (b) d. Nuclear Hazard; and (c) f. War and Military Action. (3) We will not pay for loss or damage caused by or resulting from: (a) Wear and tear; (b) Hidden or latent defect; (c) Rust; (d) Corrosion; or (a) Mechanical Breakdown, except as provided for in SECTION I — PROPERTY, A. Coverage, 5. Additional Coverages, U. Equipment Breakdown. (4) The most we will pay for loss or damage in any one occurrence is $5,000 regardless of the number of locations or buildings involved. u. Equipment Breakdown (1) We will pay for direct physical damage to Covered Property that is the direct result of an "accident" or "electronic circuitry impairment". We will consider "electronic circuitry impairment" to be physical damage to "covered equipment." (2) The following coverages also apply to the direct result of an "accident" or "electronic circuitry impairment". However, with respect to coverage A.5.u.(2)(h) Utility Services — Equipment Breakdown (Accident) and A.5.m. Business Income from Dependent Properties provided in this coverage form, coverage will apply only to the direct result of an "accident" and will not apply to the direct result of an "electronic circuitry impairment". These coverages do not provide additional amounts of insurance. (a) Data Restoration We will pay for your reasonable and necessary cost to research, replace and restore lost "data." The most we will pay for loss or expense under this coverage, including actual loss of Business Income you sustain and 391-1003 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 22 of 81 necessary Extra Expense you incur is $50,000. (b) Expediting Expenses With respect to your damaged Covered Property, we will pay, up to $50,000, the reasonable extra cost to: (i) Make temporary repairs; and (ii) Expedite permanent repairs or permanent replacement. (c) Fungi, Wet Rot, or Dry Rot (1) We will pay the additional cost to repair or replace Covered Property because of contamination by "fungi", wet rot or dry rot. This includes the additional costs to clean up or dispose of such property. This does not include spoilage of personal property that is "perishable goods" to the extent that such spoilage is covered under Spoilage coverage. (ii) As used in this coverage, additional costs mean those beyond what would have been payable under this Equipment Breakdown Coverage had no "fungi", wet rot or dry rot been involved. (iii) We will also pay the cost of testing performed after repair or replacement of the damaged Covered Property is completed only to the extent that there is reason to believe there is the presence of "fungi", wet rot or dry rot. (iv) This coverage does not apply to lawns, trees, shrubs or plants which are part of a vegetated roof. (v) The most we will pay in any ,.one equipment breakdown" for loss, damage or expense under this coverage, including actual loss of Business Income you sustain and necessary Extra Expense you incur, if shown as covered, is $15,000 even if the "fungi', wet rot or dry rot continues to be present or active or recurs in a later policy period. (d) Hazardous Substances We will pay for the additional cost to repair or replace Covered Property because of a contamination by a "hazardous substance". This includes the additional costs to clean up or dispose of such property. This does not include contamination of 'perishable goods' by refrigerant, including but not limited to ammonia, which is addressed in (g) Spoilage below. Additional costs mean those beyond what would have been payable had no "hazardous substance' been involved. The most we will pay for loss, damage or expense under this coverage, including actual loss of Business Income you sustain, and necessary Extra Expense you incur is $50,000. (a) Personal Property Off Premises Equipment Breakdown (1) Any direct physical damage for personal property off premises provided under Coverage Extension b. Personal Property Off Premises, also applies to the direct result of an "accident" or "electronic circuitry impairment'. (ii) We will also pay for your reasonable and necessary cost to research, replace and restore lost "electronic data' contained within 'covered equipment' when due to covered loss or damage as described in (i) above. This amount may not exceed the limit applicable to Data Restoration coverage. (iii) The most we will pay for loss, damage or expense under this coverage, including actual loss of Business Income you sustain and necessary Extra Expense you incur and Data Restoration as described in (ii) above is $50,000. (f) Public Relations 391.1003 00 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 23 of 81 (i) This coverage only applies if "accident" or "electronic you have sustained an actual circuitry impairment", less loss of Business Income. discounts and expenses you (ii) We will pay for your otherwise would have had. reasonable costs for Otherwise our payment will be professional services to determined in accordance create and disseminate with the Loss Payment communications, when the Condition. need for such (III) The most we will pay for loss communications arises or damage under this directly from the interruption coverage is $50,000. of your business. This (h) Utility Services — Equipment communication must be Breakdown (Accident) directed to one or more of the following: (1) Any insurance provided for 1) The media; Business Income, Extra Expense, Data Restoration or 2) The public; or Spoilage is extended to apply 3) Your customers, clients or to your loss, damage or members, expense caused by a failure or disruption of service. The (iii) Such costs must be incurred failure or disruption of service during the "period of must be caused by an restoration" or up to 30 days "accident" to equipment, after the "period of including overhead restoration" has ended. transmission lines, that is (iv) The most we will pay for loss owned by a utility, landlord, a or expense under this landlord's utility or other coverage is $5,000. supplier who provides you (g) Spoilage with any of the following (i) We will pay for: services: electrical power, waste disposal, air 1) Physical damage to your conditioning, refrigeration, "perishable goods" due to heating, natural gas, spoilage. compressed air, water, steam, 2) Physical damage to your Internet access, "perishable goods" due to telecommunications services, contamination from the "cloud computing services", release of refrigerant, wide area networks or data including but not limited to transmission. The equipment ammonia. must meet the definition of "covered equipment" except 3) Any necessary expenses that it is not Covered you incur to reduce the Property. amount of loss under this coverage. We will pay for (ii) "Cloud computing services" such expenses to the must be provided by a extent that they do not professional provider with exceed the amount of loss whom you have a contract. that otherwise would have (iii) With respect to the Data been payable under this Restoration portion of this coverage. Service Interruption coverage, (ii) If you are unable to replace coverage will also apply to "perishable goods" before its data" stored in the equipment anticipated sale, the amount of a provider of "cloud of our payment will be computing services". determined on the basis of the (iv) Any insurance provided for sales price of the "perishable Business Income or Data goods" at the time of the Restoration will not apply 391-1003 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 24 of 81 under this Service Interruption coverage unless the failure or disruption of service exceeds 24 hours immediately following the "accident". If the interruption exceeds 24 hours, coverage will begin at the time of the disruption, and the applicable deductible will apply. (v) The most we will pay in any "one equipment breakdown" for loss, damage or expense under this coverage is the applicable limit for Business Income, Extra Expense, Data Restoration or Spoilage. (3) Conditions (a) Suspension When any "covered equipment" is found to be in, or exposed to, a dangerous condition, any of our representatives may immediately suspend the insurance against loss from an "accident" or "electronic circuitry impairment" to that "covered equipment". We can do this by mailing or delivering a written notice of suspension to: (1) Your address as shown in the Declarations; or (ii) The address where the "covered equipment" is located. Once suspended in this way, your insurance can be reinstated only by an endorsement for that "covered equipment". If we suspend your insurance, you will get a pro rate refund of premium for that "covered equipment". But the suspension will be effective even if we have not yet made or offered a refund. (b) Jurisdictional Inspections If any property that is "covered equipment" under this Additional Coverage requires inspection to comply with state or municipal boiler and pressure vessel regulations, we agree to perform such inspection on your behalf. We do not warrant that conditions are safe or healthful. (c) Environmental, Safety and Efficiency Improvements If "covered equipment" requires replacement due to an "accident" or "electronic circuitry impairment," we will pay your additional cost to replace with equipment that is better for the environment, safer for people or more energy or water efficient than the equipment being replaced. However, we will not pay to increase the size or capacity of the equipment and we will not pay more than 150% of what the cost would have been to replace with like kind and quality. This provision does not apply to the replacement of component parts or to any property to which Actual Cash Value applies and does not increase any of the applicable limits. (4) Special Equipment Breakdown Exclusions (a) We will not pay for loss, damage or expense caused by or resulting from a hydrostatic, pneumatic or gas pressure test of any boiler or pressure vessel, or an electrical insulation breakdown test of any type of electrical equipment. (b) With respect to Business Income, Extra Expense and Utility Services coverages, we will also not pay for: (1) Loss caused by your failure to use due diligence and dispatch, and all reasonable means to resume business; or (ii) Any increase in loss resulting from an agreement between you and your customer or supplier. (c) Except as provided under u.2.(c) "Fungi", Wet Rot or Dry Rot coverage we will not pay for loss, damage or expense caused directly or indirectly by the following, whether or not caused by or resulting from an "accident" or "electronic circuitry impairment": Any "fungi," wet rot or dry rot, including any presence, growth, proliferation, spread or any activity of "fungi," wet rot or dry rot. This includes, but is not 391.1003 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 25 of 81 limited to, costs arising from clean (viii)"Flood", surface water, up, removal, or abatement of such waves, tides, tidal waves, "fungi," wet rot or dry rot. overflow of any body of water, However, this exclusion does not or their spray, all whether apply to spoilage of personal driven by wind or not; property that is "perishable mudslide or mudflow; or water goods," to the extent that such that backs up or overflows spoilage is covered under from a sewer, drain or sump. Spoilage coverage. However, if electrical "covered (d) This Additional Coverage - equipment" requires drying Equipment Breakdown does not out because of the above, we apply to an "accident" or will pay for the direct "electronic circuitry impairment" expenses of such drying out caused by or resulting from: subject to the applicable Limit (t) Fire (including fire resulting of Insurance and deductible for Building or Business from an "accident" or Personal Property, whichever electronic circuitry applies. impairment"), or water or other means used to (Ix) Any earth movement, extinguish a fire; including but not limited to (ii) Explosion of gas or earthquake, subsidence, sinkhole collapse, landslide, unconsumed fuel within the earth sinking, tsunami or furnace of any boiler or fired volcanic action. vessel or within the passages from that furnace to the Special Equipment (e) Breakdown p atmosphere; Exclusions (5)(d)(v), (5)(d)(vi) and (5)(d)(vit) shall not apply if: (tii) Any other explosion, except as specifically covered under (i) The excluded cause of loss this Additional Coverage; occurs away from any (iv) Vandalism; covered location and causes an electrical surge or other (v) Lightning; smoke; aircraft or electrical disturbance; vehicles; riot or civil (ti) Such surge or disturbance is commotion; sprinkler leakage; transmitted through utility elevator collision; service transmission lines to (vi) Windstorm or hail; However, the covered location and this exclusion does not apply results in an "accident" or when: "electronic circuitry 1) "Covered equipment" impairment"; and located within a building (iii) The loss, damage or expense or structure suffers an caused by such surge or "accident" or "electronic disturbance is not covered circuitry impairment" that elsewhere under the policy. results from wind-blown (f) We will not pay under this rain, snow, sand or dust; Additional Coverage for any loss and or damage to animals. 2) The building or structure The most we will pay for loss, damage did not first sustain wind or expense arising from any "one or hail damage to its roof equipment breakdown" is the or walls through which the applicable Limit of Insurance shown in rain, snow, sand or dust the Declarations. This Additional entered. Coverage does not provide an (vii)Breakage of glass; falling additional amount of insurance. objects; weight of snow, ice or sleet; freezing (caused by cold weather); collapse or molten material; 391-1003 08 16 Includes copyrighted material or Insurance Services Office, Inc., with its permission. Page 26 of B1 v. Commercial Tools and Small Equipment (1) This Additional Coverage is available only when a Limit of Insurance is shown in the Declarations for Business Personal Property. (2) We will pay for direct physical loss of or damage caused by or resulting from a Covered Cause of Loss to commercial tools and small equipment, including their: (a) Accessories, whether attached or not attached; and (b) Spare parts that are specifically designed and intended for use in the maintenance and operation of property covered under this Additional Coverage; That is: (c) Your property; (d) The property of others in your care, custody or control; or (a) The property of your "employees". Damage to the property of your "employees" is limited to while on the described premises. Commercial Tools and Small Equipment does not include communication devices and diagnostic equipment unless otherwise covered in SECTION I — PROPERTY, A. Coverage, 5. Additional Coverages, r. Computer Equipment. (3) This coverage only applies to any one tool or piece of small equipment with a replacement cost value of $2,500 or less, unless listed on a schedule included with this policy. (4) The most we will pay for any loss under this Additional Coverage in any one occurrence is $5,000 unless a higher Limit of Insurance is shown in the Additional Property Coverage Schedule, but not more than $2,500 for any one tool, tool box or piece of small equipment. (6) In addition to items listed within SECTION I — PROPERTY, A. Coverage, 2. Property Not Covered, we will not pay for any loss to the following property: (a) Watercraft or watercraft parts and equipment; (b) Commercial tools and small equipment that are permanently mounted to a vehicle, including trailers; (c) Tires or tire tubes, attached or unattached, for use with commercial tools and small equipment, unless the loss or damage is caused by "theft", malicious mischief, or any of the "specified causes of loss"; or (d) Any property while underground, airborne or waterborne. (6) The following SECTION I — PROPERTY, B. Exclusions, in paragraph 1. do not apply to this Additional Coverage: (a) b. Earth Movement; (b) g. Water. (7) Special Commercial Tools and Small Equipment Exclusion We will not pay for any loss caused by or resulting from any repair, adjusting, servicing, testing or maintenance process unless fire or explosion ensues, then only for the loss caused by such ensuing fire or explosion. w. Installation (1) This Additional Coverage is available only when a Limit of Insurance is shown in the Declarations for Business Personal Property. (2) We will pay for direct physical loss of or damage to property sold under an installation agreement where your insurable interest continues until the property is accepted by the purchaser for whom the project is to be performed. Coverage applies under this Additional Coverage when the loss or damage is caused by or resulting from any Covered Cause of Loss. (3) The property under which this insurance applies includes: (a) Materials, supplies, equipment, machinery, fixtures owned by you or in your care, custody or control, and which are to be installed by you or at your direction; and (b) Temporary structures built or assembled on -site, including cribbing, scaffolding and construction forms. 391.1003 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 27 of 81 This property is covered while: (c) At any jobsite you do not own, lease or operate; (d) Awaiting and during installation, or awaiting acceptance by the purchaser; (a) "In transit"; or (f) At a temporary storage location. (4) Coverage provided under this Additional Coverage will end when one of the following first occurs: (a) This policy expires or is cancelled; (b) The property covered under this Additional Coverage is accepted by the purchaser; (c) Your interest in the property covered under this Additional Coverage ceases; (d) You abandon the project to be performed by you for the purchaser, with no intention to complete it; or (a) 90 days after the project to be performed by you for the purchaser is completed, unless we specify a different date in writing. (5) In addition to SECTION I — PROPERTY, A. Coverage, 2. Property Not Covered, the following property is not covered with respect to this Additional Coverage: (a) An existing building or structure to which an addition, alteration, improvement or repair is being made; (b) Property stored at a permanent premises that you own; (c) A plan, blueprint, design or specification; (d) Trees, grass, sod, shrubbery or plants; and (a) The cost to make good or replace faulty or defective materials or workmanship; (b) Testing. However, if testing results in fire or explosion, we will pay for the loss or damage caused by that fire or explosion; (c) A fault, defect, deficiency, error or omission in a plan, blueprint, design or specification; (d) The weight of a load when it exceeds the designed capacity of any property covered under this Additional Coverage to lift, move or support the load from any position; or (a) Collision, upset or overturn of any property covered under this Additional Coverage to the extent of any loss of or damage to the tires or inner tubes of such property. But we will pay for the loss of or damage to the tires or inner tubes if the same accident causes other covered loss to the same property covered under this Additional Coverage. (7) The following in SECTION I — PROPERTY, B. Exclusions, paragraph 1. do not apply to this Additional Coverage: (a) b. Earth Movement; and (b) g. Water. (8) The most we will pay for loss of or damage to property covered under this Additional Coverage in any one occurrence is $5,000, regardless if the property is located at a jobsite, while "in transit", or at a temporary storage location. This Additional Coverage does not increase SECTION I — PROPERTY, C. Limits of Insurance. x. Fine Arts (a) Machinery, tools, equipment, (1) We will pay for direct physical loss to supplies or similar property that "fine arts" which are your property or does not become a permanent the property of others in your care, part of the project. This includes custody or control while on the contractor's equipment and other described premises. We also cover tools belonging to a contractor or your "fine arts" while temporarily on sub -contractor. display or exhibit away from the (6) Special Installation Exclusions described premises or while "in We will not pay for any loss caused by transit" between the described or resulting from: premises and a location where the 391-1003 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 28 of 81 "fine arts" will be temporarily on display or exhibit. (2) The following of SECTION I — PROPERTY, B. Exclusions, paragraph 1. do not apply to this Additional Coverage: (a) b. Earth Movement; and (b) g. Water (3) The most we will pay for any loss under this Additional Coverage is $10,000 per occurrence regardless of the number of locations or buildings involved. (4) Special Fine Arts Exclusion We will not pay for any loss caused by or resulting from: (a) Breakage of statuary, glassware, bric-a-brac, marble, porcelain and similar fragile property. But we will pay if the loss or damage is caused directly by a "specified cause of loss", earthquake or "flood"; and (b) Any repairing, restoration or retouching of the "fine arts". y. Sales Representative Samples. (1) We will pay for direct physical loss or damage by a Covered Cause of Loss to samples of your "stock' in trade (including containers) while: (a) In the custody of your sales representative, agent or any "employee" who travels with sales sam pies; (b) In your custody while acting as a sales representative; or (c) "In transit' between the described premises and your sales representatives. (2) The following of SECTION I — PROPERTY, B. Exclusions, paragraph 1. do not apply to this Additional Coverage: (a) b. Earth Movement; and (b) g. Water (3) The most we will pay for any loss or damage under this Additional Coverage is $5,000 unless a higher Limit of Insurance is shown in the Additional Property Coverage Schedule. (4) We will not pay for loss to the following property: (a) Property which has been sold; (b) Jewelry, precious or semiprecious stones, gold, silver, platinum or other precious metals or alloys; (c) Fur, fur garments or garments trimmed with fur; or (d) Any property while waterborne. z. Leasehold Interest (Tenants Only) (1) If your lease is cancelled due to direct physical damage to property at the described premises caused by or resulting from a Covered Cause of Loss, we will pay the net loss you sustain due to increased rent under a replacement lease. (2) The most we will pay for loss because of the cancellation of any lease or leases due to the same covered cause of loss is the lesser of: (a) If your lease is cancelled and either: (i) Your landlord allows you to continue to use your premises under a new lease not to exceed the prevailing lease rate, or (ii) You relocate to other permanent premises and enter into a new lease. For the duration of the lease in effect at the time of the loss, we will pay the increase in rent between what you were paying at the time of loss and the rent you will be required to pay for equivalent premises under the replacement lease; (b) $10,000; or (c) Nothing if there is not a written or legally binding lease. (3) The following applies to paragraph (2), subparagraphs (a)(i) and (a)(ii) above: (a) If the lease in effect at the time of the loss contains a renewal option, the expiration date of the renewal option period will replace the expiration of the current lease. (b) If the lease has no end date (open-ended), we will pay the difference in rent for a period of no more than 24 months after the date of the direct physical damage to the property at the described premises. 391-1003 08 16 Includes copyrighted material of Insurance Services Office, Inc., with Its permission. Page 29 of 81 (4) The following applies to paragraph (2), subparagraphs (a) and (b) above: (a) $10,000 will be the maximum amount payable regardless of the number of leases affected by the same Covered Cause of Loss. (b) Existence of a renewal option will not increase, or have any other effect on this Limit of Insurance. (5) Special Leasehold Interest Exclusion We will not pay for any loss or damage: (a) If the unit or suite rented or leased to you where direct damage occurs has been vacant more than 60 consecutive days before the loss or damage occurs, and you have not entered into an agreement to sublease the unit or suite. (b) Caused by your cancelling the lease, or (c) Caused by lessors' lease cancellation at the normal expiration date. aa. Unauthorized Business Credit Card Use (1) We will pay for loss resulting from the "theft" or unauthorized use of Business Credit Cards issued to you or registered in your name. (2) We do not cover use of a Business Credit Card: (a) By a person who has been entrusted with the card; or (b) any of your "employees". (3) All loss: (a) Caused by one or more persons; or (b) Involving a single act or series of related acts; is considered one occurrence regardless of the number of individual unauthorized transactions. (4) If a suit is brought against you for liability, we will pay for reasonable legal expenses incurred in that defense under this Additional Coverage. (5) The most we will pay for any loss including legal expenses, under this Additional Coverage is $5,000 per occurrence. bb. Utility Services (1) We will pay for loss of or damage to Covered Property caused by an interruption in service to the described premises. The interruption must result from direct physical loss or damage by a Covered Cause of Loss to property not on the described premises that provides the services shown in paragraph (3) below. The most we will pay for loss in any one occurrence under this Additional Coverage is $10,000 at each described premises or the Limit of Insurance shown in the Additional Property Coverage Schedule. (2) We will pay for the actual loss of Business Income you sustain and necessary Extra Expense you incur caused by the interruption of service at the described premises. The interruption must result from direct physical loss or damage by a Covered Cause of Loss to property not on the described premises that provides the services shown in paragraph (3) below. We will only pay for loss you sustain after the first 24 hours following the direct physical loss of or damage to the property described above. The most we will pay for loss in any one occurrence under this Additional Coverage is $5,000 at each described premises or the Limit of Insurance shown in the Additional Property Coverage Schedule. (3) Services: (a) Water Supply Services, meaning the following types of property supplying water to the described premises: (i) Pumping stations; and (ii) Water mains. (b) Communication Supply Services, meaning the following types of property supplying communication services, including but not limited to telephone, radio, microwave, television services, internet access or access to any electronic, cellular or satellite 391-1003 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 30 of 81 network to the described premises, such as: (i) Communication transmission lines, including optic fiber transmission lines; (ii) Coaxial cables; and (Ili) Microwave radio relays except satellites. (c) Power Supply Services, meaning the following types of property supplying electricity, steam or gas to the described premises: (i) Utility generating plants; (ii) Switching stations; (III) Substations; (iv) Transformers; and (v) Transmission lines. (4) Services under this Additional Coverage do not include overhead transmission lines that deliver utility services to you. Overhead transmission lines include, but are not limited to: (a) Overhead transmission and distribution lines; (b) Overhead transformers and similar equipment; and (c) Supporting poles and towers. (5) As used in this additional coverage, the term transmission lines includes all lines which serve to transmit communication service or power, including lines which may be identified as distribution lines. (6) This coverage is not an additional amount of insurance. (7) Coverage under this Additional Coverage for loss or damage to Covered Property does not apply to loss or damage to "electronic data", including destruction or corruption of "electronic data". (8) The definitions of Business Income and Extra Expense contained in the Business Income and Extra Expense Additional Coverages also apply to this Utility Services Additional Coverage. cc. Deferred Payments (1) We will pay for your interest in lost or damaged Business Personal Property sold by you under a conditional sale or trust agreement or any installment or deferred payment plan after delivery to buyers. The loss or damage must be caused by a Covered Cause of Loss. (2) When a total loss to that property occurs, deferred payments are valued on the amount shown on your books as due from the buyer. When a partial loss to that property occurs and the buyer refuses to continue payment, forcing you to repossess, deferred payments are valued as follows: (a) If the realized value of the repossessed property is greater than or equal to the amount shown on your books as due from the buyer, we will make no payment; but (b) If the realized value of the repossessed property is less than the amount shown on your books as due from the buyer, we will pay the difference. (3) When loss occurs and the buyer continues to pay you, there will be no loss payment. (4) The most we will pay for loss under this Additional Coverage is $5,000 per occurrence. dd. Electronic Vandalism (1) SECTION I — PROPERTY, A. Coverage, 2. Property Not Covered, paragraph o. is deleted. (2) We cover direct physical loss of or damage to covered "computer equipment" at the described premises caused by "electronic vandalism". (3) The most we will pay in any one occurrence under this Additional Coverage is $10,000. The most we pay for all covered losses under this Additional Coverage during each separate 12-month period of this policy is $10,000. (4) Special Electronic Vandalism Exclusions We do not cover: (a) Loss of proprietary use of any "electronic data" or "proprietary programs" that have been copied, scanned, or altered; (b) Loss of or reduction in economic or market value of any "electronic 391-1003 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 31 of 81 data" or "proprietary programs" (3) The most we will pay under this that have been copied, scanned, Additional Coverage — Interruption of or altered; and Computer Operations for all loss (c) "Theft" from your "electronic data" sustained and expense incurred in or "proprietary programs" of any one policy year, regardless of the confidential information through number of interruptions or the number the observation of the "electronic of premises, locations or computer data" or "proprietary programs" by systems involved, is $10,000 unless a accessing covered "computer higher Limit of Insurance is shown in equipment" without any alteration the Declarations. If loss payment or other physical loss of or relating to the first interruption does damage to the records or not exhaust this amount, then the programs. Confidential information balance is available for loss or includes, but is not limited to, expense sustained or incurred as a customer information, processing result of subsequent interruptions in methods, or trade secrets. that policy year. A balance remaining at the end of a policy year does not ee. Interruption of Computer Operations increase the amount of insurance in This Additional Coverage is only available the next policy year. With respect to if Business Income is covered under this any interruption which begins in one Coverage Form. policy year and continues or results in (1) Subject to all provisions of this additional loss or expense in a Additional Coverage, you may extend subsequent policy year(s), all loss and the insurance that applies to Business expense is deemed to be sustained or Income and Extra Expense to apply to incurred in the policy year in which the a suspension of "operations" at the interruption began. described premises caused by an (4) This Additional Coverage — interruption in computer operations Interruption of Computer Operations due to destruction or corruption of does not apply to loss sustained or "electronic data" occurring at or away expense incurred after the end of the from the described premises resulting "period of restoration", even if the from any Covered Cause of Loss. amount of insurance stated in (2) With respect to the coverage provided paragraph (3) above has not been under this Additional Coverage, the exhausted. Covered Causes of Loss are subject (5) Coverage for Business Income does to the following: not apply when a "suspension" of (a) With respect to the coverage "operations" is caused by destruction provided under this Additional or corruption of "electronic data", or Coverage, the Covered Causes of any loss or damage to "electronic Loss include "electronic data", except as provided under vandalism". But there is no paragraphs (1), (2), (3) and (4) of this coverage for an interruption Additional Coverage. related to manipulation of a (6) Coverage for Extra Expense does not computer system (including apply when action is taken to avoid or "electronic data") by any minimize a "suspension" of employee, including a temporary "operations" caused by "electronic or leased employee, or by an vandalism", except as provided under entity retained by you, or for you, paragraphs (1), (2), (3) and (4) of this to inspect, design, install, modify, Additional Coverage. maintain, repair or replace that (7) This Additional Coverage — system. Interruption of Computer Operations (b) If the Businessowners Coverage does not apply when loss or damage Form is endorsed to add a to "electronic data" involves only Covered Cause of Loss, the "electronic data" which is integrated in additional Covered Cause of Loss and operates or controls a building's does not apply to the coverage elevator, lighting, heating, ventilation, provided under this Additional air conditioning or security system. Coverage. 391.1003 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 32 of 81 ff. Limited Coverage for Fungi, Wet Rot, or (4) The coverage provided under this Dry Rot Limited Coverage does not increase (1) The coverage described in the applicable Limit of Insurance on paragraphs (2) and (6) below only any Covered Property. If a particular applies when the "fungi", wet rot or dry occurrence results in loss or damage rot is the result of any of the "specified by "fungi", wet rot or dry rot, and other causes of loss" other than fire or loss or damage, we will not pay more lightning that occurs during the policy for the total of all loss or damage, than period and only if all reasonable the applicable Limit of Insurance on means were used to save and the affected Covered Property. preserve the property from further If there is covered loss or damage to damage at the time of and after that Covered Property, not caused by occurrence. "fungi', wet rot or dry rot, loss This Additional Coverage does not payment will not be limited by the apply to lawns, trees, shrubs or plants terms of this Limited Coverage, except which are part of a vegetated roof. to the extent that "fungi", wet rot or dry (2) We will pay for loss or damage by rot causes an increase in the loss. Any such increase in the loss will be "fungi", wet rot or dry rot. As used in subject to the terms of this Limited this Limited Coverage, the term loss Coverage. or damage means: (5) The terms of this Limited Coverage do (a) Direct physical loss of or damage not increase or reduce the coverage to Covered Property caused by provided in SECTION I — PROPERTY, "fungi", wet rot or dry rot, including A. Coverage, 5 Additional the cost of removal of the "fungi', Coverages, d. Collapse; and/or e. wet rot or dry rot; Water Damage, Other Liquids, (b) The cost to tear out and replace Powder or Molten Material Damage. any part of the building or other (6) The following applies only if Business property as needed to gain access "fungi", Income and/or Extra Expense to the wet rot or dry rot; Coverage applies to the described and premises and only if the "suspension" (c) The cost of testing performed after of "operations" satisfies all the terms removal, repair, replacement or and conditions of the applicable restoration of the damaged SECTION I — PROPERTY, A. property is completed, provided Coverage, 5. Additional Coverages, there is a reason to believe that f. Business Income and/or g. Extra "fungi", wet rot or dry rot is Expense: present. (a) If the loss which resulted in (3) The coverage described under this "fungi", wet rot or dry rot does not Limited Coverage is limited to in itself necessitate a "suspension" $50,000. Regardless of the number of of "operations", but such claims, this limit is the most we will "suspension" is necessary due to pay for the total of all loss or damage loss or damage to property arising out of all occurrences caused caused by "fungi", wet rot or dry by or resulting from any of the rot, then our payment under "specified causes of loss" (other than SECTION I — PROPERTY, A. fire or lightning) which take place in a Coverage, 5. Additional 12 month period (starting with the Coverages, f. Business Income beginning of the present policy and/or g. Extra Expense is period). With respect to a particular limited to the amount of loss occurrence of loss which results in and/or expense sustained in a "fungi", wet rot or dry rot, we will not period of not more than 30 days. pay more than the total of $60,000 The days need not be even if the "fungi", wet rot or dry rot consecutive. continues to be present or active, or (b) If a covered suspension of recurs, in a later policy period. "operations" was caused by loss or damage other than "fungi", wet 391.1003 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 33 of 81 rot or dry rot, but remediation of "fungi", wet rot, dry rot prolongs the "period of restoration", we will pay for loss and/or expense sustained during the delay (regardless of when such a delay occurs during the "period of restoration"), but such coverage is limited to 30 days. The days need not be consecutive. gg. Theft of Telephonic Services (1) We will pay amounts you are obligated to pay that result from the "theft" of your "telephonic services" when someone who is not an "employee" gains unauthorized access to your "telephonic services" used in your business operations. (2)The most we will pay under this Additional Coverage for acts of "theft" of "telephonic services", regardless of the number of "thefts" of "telephonic services" that you sustain in one policy year is $25,000. hh. Computer and Funds Transfer Fraud (1) We will pay for: (a) Loss resulting directly from a fraudulent: (i) Entry of "electronic data" or "computer program" into; or (Ii) Change of "electronic data" or "computer program" within; any "computer equipment" owned, leased or operated by you, provided the fraudulent entry or fraudulent change causes, with regard to (1)(a)(i) and (1)(a)(11) in the above paragraph: (iii) "Money", "securities" or "other property" to be transferred, paid or delivered; or (iv) Your account at a "financial institution" to be debited or deleted. (b) Loss resulting directly from a "fraudulent instruction" directing a "financial institution" to debit your "transfer account" and to transfer, pay or deliver "money" or "securities" from that account. (2) As used in (1)(a) above, fraudulent entry or fraudulent change of "electronic data" or "computer program" shall include such entry or change made by an "employee" acting, in good faith, upon a "fraudulent instruction" received from a computer software contractor who has a written agreement with you to design, implement or service "computer programs" for "computer equipment" covered under this Insuring Agreement. (3) The most we will pay per occurrence under this Additional Coverage is $5,000 unless a higher Limit of Insurance is shown in the Schedule of Amended Limits of Insurance. (4) Under this Additional Coverage all loss: (a) Caused by one or more persons; or (b) Involving a single act or series of acts: is considered one occurrence. ii. Tenant Building Insurance — When Your Lease Requires You to Provide Insurance (1) This Additional Coverage is available only when the Named Insured is a tenant and a Limit of Insurance is shown in the Declarations Page for Business Personal Property. (2) We will pay for direct physical loss of or damage to a building on the described premises owned by your landlord and in your care, custody or control for which you have a written contractual responsibility to insure. The loss or damage must be the result of or caused by a Covered Cause of Loss. (3) Regardless of the number of described buildings affected, the most we will pay per insured location under this Additional Coverage is $25,000 in any one occurrence. j). Tenant Business Personal Property Insurance — When Your Lease Requires You to Provide Insurance (1) This Additional Coverage is available only when the Named Insured is a tenant and a Limit of Insurance is shown in the Declarations Page for Business Personal Property. (2) Subject to SECTION I — PROPERTY, E. Property Loss Conditions, 5. Loss Payment, paragraph d., subparagraph (3)(b), we will pay for 391-1003 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 34 of 81 direct physical loss of or damage to your landlord's personal property located inside of a building on the described premises and in your care, custody or control for which you have a written contractual responsibility to insure. The loss or damage must be the result of or caused by a Covered Cause of Loss. (3) Regardless of the number of buildings where the landlord's personal property is located, the most we will pay per insured location under this Additional Coverage in any one occurrence is $25,000. 6. Coverage Extensions Except as otherwise provided, the following extensions apply to property located in or on the building described in the Declarations or in the open (or in a vehicle) within 1,000 feet of the described premises: a. Newly Acquired Property (1) Buildings or Constructed If your policy covers Buildings, you may extend the insurance provided under Building to apply to direct physical loss or damage when such loss or damage is caused by a Covered Cause of Loss to: (a) Your new buildings while being built on the described premises; and (b) Buildings you acquire at premises other than the one described, intended for: (i) Similar use as the building described in the Declarations; or (ii) Used as a warehouse. (c) The most we will pay for loss or damage under this Extension for Newly Acquired or Constructed Buildings is $1,000,000 at each building. (2) Business Personal Property (a) If your policy covers Business Personal Property, you may extend the insurance provided under Business Personal Property to apply to direct physical loss or damage when such loss or damage is caused by a Covered Cause of Loss to: (1) Business Personal Property, including such property that you newly acquire, at any location you acquire; or (II) Business Personal Property, including such property that you newly acquire, located at your newly constructed or acquired buildings at the location described in the Declarations. (III) Business Personal Property that you newly acquire, located at the described premises. (b) This Extension does not apply to: (1) Personal property of others that is temporarily in your possession in the course of installing or performing work on such property; or (ii) Personal property of others that is temporarily in your possession in the course of your manufacturing or wholesaling activities. (c) This insurance may not be used to increase your Business Personal Property Limit. It does not apply to personal property you acquire as part of your usual customary business dealings whether or not such acquisition was related to anticipated seasonal demands. Under the terms of this Coverage Form, such property is not considered newly acquired, but falls within the provisions for Business Personal Property. (d) The most we will pay for loss or damage under this Extension is $500,000 at each premises. (3) Business Income and Extra Expense You may extend the insurance that applies to Business Income and Extra Expense to apply to property at any location you acquire. The most we will pay for loss or damage under this Extension is $250,000 at each premise. (4) Period of Coverage With respect to insurance provided under this Coverage Extension for Newly Acquired or Constructed 391-1003 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 35 of 81 Property, coverage will end when any of the following first occurs: (a) This policy expires; (b) 180 days after you acquire the property or begin construction of that part of the building that would qualify as Covered Property; or (c) You report values to us. We will charge you additional premium for values reported from the date you acquire the property or begin construction of that part of the building that would qualify as Covered Property. b. Personal Property Off Premises (1) If your policy covers Business Personal Property, you may extend the insurance provided in SECTION I — PROPERTY, A. Coverage, 1. Covered Property, b. Business Personal Property to apply to direct physical loss or damage when such loss or damage is caused by a Covered Cause of Loss while: (a) At a location you do not own, lease or operate; or (b) At any fair, trade show or exhibition. (2) The most we will pay for loss or damage under this Extension is $50,000 or the amount shown in the Additional Property Coverage Schedule, whichever is greater. (3) Special Personal Property Off Premises Exclusions This extension does not apply to property: (a) In or on a vehicle; or (b) In the care, custody or control of your sales representative, unless the property is in such care, custody or control at a fair, trade show or exhibition. c. Outdoor Property (1) You may extend insurance provided by this Coverage Form to apply to direct physical loss or damage to your radio and television antennas (including satellite dishes), trees, shrubs, plants and lawns (other than trees, shrubs or plants which are "stock" or are a part of a vegetated roof) including debris removal expense, caused by or resulting from any of the following causes of loss: (a) Fire; (b) Lightning; (c) Explosion; (d) Riot or civil commotion; (e) Aircraft; (f) Windstorm; or (g) Ice, snow, sleet and hail. (2) Coverage under this Extension does not apply to property held for sale by you. (3) Regardless of the number of described premises involved, the most we will pay for loss or damage under this Extension, including debris removal expense, is $10,000, but not more than $1,000 for any one tree, shrub or plant. d. Personal Effects (1) If your policy covers Business Personal Property, you may extend the insurance provided in SECTION I — PROPERTY, A. Coverage, 1. Covered Property, b. Business Personal Property to apply to direct physical loss or damage to personal effects owned by you, your officers, your partners or "members", your "managers" or your "employees" when such loss or damage is caused by a Covered Cause of Loss. (2) This extension does not apply to: (a) Tools or equipment used in your business; and (b) "Employees" tools and small equipment; (3) The most we will pay for loss or damage under this Extension is $10,000 at each described premises. e. Valuable Papers and Records (Other Than Electronic Data) (1) If your policy covers Business Personal Property, you may extend the insurance provided under SECTION I — PROPERTY, A. Coverage, 1. Covered Property, b. Business Personal Property to apply to direct physical loss or damage to "valuable papers and records" that you own, or that are in your care, custody or control caused by or resulting from a Covered Cause 391.1003 08 16 Includes copyrighted material of Insurance services Office, Inc., with its permission. Page 36 of 81 of Loss. This Coverage Extension includes the cost to research, replace or restore the lost information on "valuable papers and records" for which duplicates do not exist. (2) The most we will pay under this Coverage Extension for loss or damage to "valuable papers and records" in any one occurrence at the described premises is $25,000, unless a higher Limit of Insurance for "valuable papers and records" is shown in the Additional Property Coverage Schedule. (3) The most we will pay under this Coverage Extension for loss or damage to "valuable papers and records" in any one occurrence not at the described premises is $25,000, unless a higher Limit of Insurance for "valuable papers and records" is shown in the Additional Property Coverage Schedule. (4) This Coverage Extension does not apply to: (a) Property held as samples or for delivery after sale; or (b) Property in storage away from the premises shown in the Declarations; (5) SECTION I — PROPERTY, B. Exclusions does not apply to this Coverage Extension except for: (a) Paragraph 1.c. Governmental Action; (b) Paragraph 1.d. Nuclear Hazard; (c) Paragraph 11 War and Military Action; (d) Paragraph 2.d. Dishonesty; (a) Paragraph 2.e. False Pretense; (f) Paragraph 2.k. Errors or Omissions; and (g) Paragraph 3.a. Weather Conditions, 3.b. Acts or Decisions and 3.c. Negligent Work. f. Accounts Receivable (1) If your policy covers Business Personal Property, you may extend the insurance provided in SECTION I — PROPERTY, A. Coverage, 1. Covered Property, b. Business Personal Property to accounts receivable when such loss or damage is caused by or results from a Covered Cause of Loss. We will pay: (a) All amounts due from your customers that you are unable to collect; (b) Interest charges on any loan required to offset amounts you are unable to collect pending our payment of these amounts; (c) Collection expenses in excess of your normal collection expenses that are made necessary by loss or damage; and (d) Other reasonable expenses that you incur to re-establish your records of accounts receivable; that result from direct physical loss or damage by any Covered Cause of Loss to your records of accounts receivable. (2) We will pay under this Coverage Extension for loss or damage in any one occurrence at the described premises. The most we will pay is $25,000 for accounts receivable at the described premises, unless a higher Limit of Insurance for accounts receivable is shown in the Additional Property Coverage Schedule. (3) We will pay under this Coverage Extension for loss or damage in any one occurrence not at the described premises. The most we will pay is $25,000 for accounts receivable not at the described premises. (4) SECTION I — PROPERTY, B. Exclusions does not apply to this Coverage Extension except for: (a) Paragraph Il.c. Governmental Action; (b) Paragraph 1.d. Nuclear Hazard; (c) Paragraph U. War and Military Action; (d) Paragraph 2.d. Dishonesty; (a) Paragraph 2.e. False Pretense; and (f) Paragraph 3.a. Weather Conditions, 3.b. Acts or Decisions and 3.c. Negligent Work. (5) Accounts Receivable Special Exclusion We will not pay for: 391.1003 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 37 of 81 (a) Loss or damage caused by or I. Personal Property in Transit resulting from alteration, (1) If your policy covers Business falsification, concealment or Personal Property, you may extend destruction of records of accounts the insurance provided in SECTION receivable done to conceal the — PROPERTY, A. Coverage, 1. wrongful giving, taking or Covered Property, b. Business withholding of money", Personal Property to apply to direct "securities" or "other property". physical loss or damage to your This exclusion applies only to the property or property of others that is in extent of the wrongful giving, your care, custody or control while "in taking or withholding. transit" when such loss or damage is (b) Loss or damage caused by or caused by or results from a Covered resulting from bookkeeping, Cause of Loss. accounting or billing errors or (2) You may extend the insurance that omissions. applies to SECTION I — PROPERTY, (c) Any loss or damage that requires A. Coverage, 1. Covered Property, any audit of records or any b. Business Personal Property to inventory computation to prove its apply to direct physical loss or factual existence. damage, caused by a Coverage Cause of Loss, to outgoing shipments g. Key Replacement and Lock Repair that have been rejected, while in due (1) You may extend the insurance course of transit back to you or while provided under this Coverage Form to awaiting return shipment to you. cover the reasonable and necessary (3) This Extension applies to the property expense you incur due to a covered while in: "theft" for: (a) Replacement of keys if they are stolen; (b) Lock repair; or (c) Rekeying, replacing or reprogramming undamaged locks to accept new keys or entry codes when the building security has been compromised. (2) The most we will pay under this Extension is $1,000. The deductible does not apply to this Extension. h. Appurtenant Structures (1) If your policy covers Buildings, you may extend the insurance provided under Building to apply to direct physical loss or damage to garages, carports, storage buildings and other appurtenant structures, including, but not limited to, swimming pools, spas and the associated equipment within 1,000 feet of the described premises when such loss or damage is caused by or results from a Covered Cause of Loss. (2) The most we will pay for loss or damage under this Extension is $50,000 at each described premises regardless of the number of buildings or structures affected. (a) A vehicle owned, leased or operated by you; or (b) The custody of a common carrier or contract carrier. (4) The following in SECTION I — PROPERTY, B. Exclusions, paragraph 1, do not apply to this Extension: (a) b. Earth Movement; and (b) g. Water. (5) The most we will pay for loss or damage under this Coverage Extension is $10,000 unless a higher Limit of Insurance is shown in the Schedule of Amended Limits of Insurance. (6) Special Personal Property In Transit Exclusions This Extension does not apply to: (a) Shipments that belong to others that you are transporting for a fee; (b) Property while waterborne; (c) Salesperson's Samples; or (d) Loss to "perishable goods" resulting from a breakdown of refrigeration equipment on any vehicle owned, leased or operated by you or while in the custody of a common or contract carrier. 391-1003 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 38 of 81 j. Inventory and Loss Appraisal described in the Declarations or within (1) We will pay for all reasonable 1,000 feet of the described premises, expenses you incur at our written whichever distance is greater when request to assist us in: such loss or damage is caused by or (a) The investigation of a claim; results from a Covered Cause of Loss. (2) We will not pay for loss of or damage (b) The determination of the amount to Business Personal Property of loss, such as taking inventory; temporarily in portable storage units, (c) The cost of preparing specific loss caused by or resulting from rain, documents and other supporting snow, sleet, ice, sand or dust, whether exhibits; or driven by wind or not, unless: (d) Expenses you incur include costs (a) The portable storage unit first charged to you by others, sustains damage by a Covered including property managers, Cause of Loss to its roof or walls acting on your behalf to assist us through which the rain, snow, with items listed in paragraph (1) sleet, ice, sand or dust enters; or above. (b) The loss or damage is caused by (2) Regardless of the number of premises or results from thawing of snow, involved, the most we will pay under sleet or ice on the building or this Extension is $10,000. structure. (3) The deductible does not apply to (3) Coverage under this Extension: these expenses. (a) Will end 90 days after the (4) Special Inventory and Loss Business Personal Property has Appraisal Exclusion been placed in the storage unit; We will not pay for expenses: (b) Does not apply if the storage unit (a) Incurred to perform your duties in itself has been in use at the the event of a loss under described premises for more than SECTION I — PROPERTY, E. 90 consecutive days, even if the Property Loss Conditions; Business Personal Property has been stored there for 90 or fewer (b) To prove that loss or damage is days as of the time of loss or covered; damage. (c) Billed by and payable to (4) Under this Extension, the most we will independent or public adjusters; pay for the total of all loss or damage attorneys; claims advocates; or to Business Personal Property is any of their affiliated or associated $25,000 unless a higher limit is shown entities; in the Additional Property Coverage (d) To prepare claims not covered by Schedule for this Extension regardless this Coverage Form; or of the number of storage units. (a) Incurred under any appraisal (5) This Extension does not apply to loss provisions within the Coverage or damage otherwise covered under Form. this Coverage Form or any k. Business Personal Property endorsement to this Coverage Form, Temporarily in Portable Storage Units and does not apply to loss or damage to the storage unit itself. (1) If your policy covers Business 1. Paved Surfaces Personal Property, you may extend the insurance provided in SECTION 1 (1) If your policy covers Buildings, you — PROPERTY, A. Coverage, 1. may extend the insurance provided Covered Property, b. Business under SECTION I — PROPERTY, A. Personal Property to apply to direct Coverage, 1. Covered Property, a. physical loss or damage to such Building to apply to direct physical property while temporarily stored in a loss or damage to your paved portable storage unit (including a surfaces, including but not limited to detached trailer) located within 1,000 bridges, roadways, walks, patios, and feet of the buildings or structures parking lots when such loss or 391-1003 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 39 of 81 damage is caused by or results from a Covered Cause of Loss. (2) Regardless of the number of described premises involved, the most we will pay for loss or damage in any one occurrence is $26,000. (3) Payment for loss or damage to this property is included in the applicable Limit of Insurance. (4) Special Paved Surfaces Exclusion We will not pay for loss or damage caused by tree roots, freezing or thawing. m. Underground Pipes (1) If your policy covers Buildings, you may extend the insurance provided in SECTION I — PROPERTY, A. Coverage, 1. Covered Property, a. Building to apply to direct physical loss or damage to underground pipes, flues and drains when such loss or damage is caused by or results from a Covered Cause of Loss. (2) The most we will pay for loss under this Coverage Extension is the applicable Limit of Insurance. (3) Payment under this Additional Coverage is included within the Limit of Insurance. (4) Special Underground Pipes Exclusion We will not pay for loss or damage caused by tree roots. B. Exclusions 1. We will not pay for loss or damage caused directly or indirectly by any of the following. Such loss or damage is excluded regardless of any other cause or event that contributes concurrently or in any sequence to the loss. a. Ordinance or Law (1) The enforcement of or compliance with any ordinance or law: (a) Regulating the construction, use or repair of any property; or (b) Requiring the tearing down of any property, including the cost of removing its debris. (b) The increased costs incurred to comply with an ordinance or law in the course of construction, repair, renovation, remodeling or demolition of property or removal of its debris, following a physical loss to that property. This exclusion does not apply to the Ordinance or Law Additional Coverage. b. Earth Movement (1) Earthquake, including tremors and aftershocks and any earth sinking, rising or shifting related to such event; (2) Landslide, including any earth sinking, rising or shifting related to such event; (3) Mine subsidence, meaning subsidence of a man-made mine, whether or not mining activity has ceased; (4) Earth sinking (other than sinkhole collapse), rising or shifting including soil conditions which cause settling, cracking or other disarrangement of foundations or other parts of realty. Soil conditions include contraction, expansion, freezing, thawing, erosion, improperly compacted soil and the action of water under the ground surface. But if Earth Movement, as described in paragraphs (1), (2), (3) and (4) above, results in fire or explosion, we will pay for the loss or damage caused by that fire or explosion.. (5) Volcanic eruption, explosion or effusion. But if volcanic eruption, explosion or effusion results in fire, building glass breakage or volcanic action, we will pay for the loss or damage caused by that fire, building glass breakage or volcanic action. Volcanic action means direct loss or damage resulting from the eruption of a volcano when the loss or damage is caused by: (a) Airborne volcanic blast or airborne shock waves; (b) Ash, dust or particulate matter; or (2) This exclusion, Ordinance or Law, (c) Lava flow. applies whether the loss results from: With respect to coverage for volcanic (a) An ordinance or law that is action as set forth in paragraph (5), enforced even if the property has subparagraphs (a), (b) and (c) above, not been damaged; or all volcanic eruptions that occur within 391-1003 08 16 Includes copyrighted material of Insurance Services Office, Inc., with Its permission. Page 40 of 81 any 168-hour period will constitute a single occurrence. Volcanic action does not include the cost to remove ash, dust or particulate matter that does not cause direct physical loss of or damage to Covered Property. This exclusion applies regardless of whether or not any of the above, in SECTION I — PROPERTY, B. Exclusions, paragraph 1., b Earth Movement, subparagraphs(1), (2), (3), (4) and (5), are caused by an act of nature or is otherwise caused. c. Governmental Action Seizure or destruction of property by order of governmental authority. But we will pay for 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. d. 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 loss or damage caused by that fire. e. Utility Services The failure of power, communication, water or other utility service supplied to the described premises, however caused, if the failure: (1) Originates away from the described premises; or (2) Originates at the described premises, but only if such failure involves equipment used to supply the utility services to the described premises from a source away from the described premises. Failure of any utility service includes lack of sufficient capacity and reduction in supply. Loss or damage caused by a surge of power is also excluded, if the surge would not have occurred but for an event causing a failure of power. But if the failure or surge of power, or the failure of communication, water or other utility service, results in a Covered Cause of Loss, we will pay for the loss or damage caused by that Covered Cause of Loss. Communication services include but are not limited to service relating to Internet access or access to any electronic, cellular or satellite network. This exclusion does not apply to loss or damage to "computer equipment' and "electronic data" or to SECTION 1 — PROPERTY, 5. Additional Coverages, bb. Utility Services. f. War and Military Action (1) War, including undeclared or civil war; (2) Warlike action by a military force, including action in hindering or defending against an actual or expected attack, by any government, sovereign or other authority 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. g. Water (1) "Flood", surface water, waves (including tidal wave or 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. (5) Waterborne material carried or otherwise moved by any of the water referred to in paragraphs (1), (3) or (4) above, or material carried or otherwise moved by mudslide or mudflow. This exclusion applies regardless of whether any of paragraphs (1), (2), (3), (4) and (5) above, are caused by an act of nature or is otherwise caused. An example 391.1003 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 41 of 81 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 Water, as described in paragraphs (1), (2), (3), (4) and (5) above, results in fire, explosion or sprinkler leakage, we will pay for the loss or damage caused by that fire, explosion or sprinkler leakage. If electrical "covered equipment' requires drying out because of paragraphs (1), (2), (3), (4) and (5) above, we will pay for the direct expenses of such drying out subject to the applicable Limit of Insurance and Deductible for Building or Personal Property, whichever applies. h. Fungi, Wet Rot or Dry Rot Presence, growth, proliferation, spread or any activity of "fungi", wet rot or dry rot. But if "fungi', wet rot or dry rot results in any of the "specified causes of loss', we will pay for the loss or damage caused by any of the "specified causes of loss'. This exclusion does not apply: (1) When "fungi", wet rot or dry rot results from fire or lightning; or (2) To the extent that coverage is provided in the SECTION I — PROPERTY, A. Coverage, 5. Additional Coverage, ff. Limited Coverage for Fungi, Wet Rot or Dry Rot, with respect to loss or damage by a cause of loss other than fire or lightning. i. Virus or Bacteria (1) Any virus, bacterium or other microorganism that induces or is capable of inducing physical distress, illness or disease. (2) However, the exclusion in paragraph (1) above, does not apply to loss or damage caused by or resulting from "fungi", wet rot or dry rot. Such loss or damage is addressed in SECTION I — PROPERTY, B. Exclusions, paragraph 1., h. Fungi, Wet Rot or Dry Rot. (3) With respect to any loss or damage subject to the exclusion in paragraph (1) above, such exclusion supersedes any exclusion relating to "pollutants'. event results in widespread damage or affects a substantial area. 2. We will not pay for loss or damage caused by or resulting from any of the following: a. Consequential Losses Delay, loss of use or loss of market, however caused. b. Smoke, Vapor and Gas Smoke, vapor or gas from agricultural smudging or industrial operations. c. Frozen Plumbing Water, other liquids, powder or molten material that leaks or flows from plumbing, heating, air conditioning or other equipment (except fire protective systems) caused by or resulting from freezing, unless: (1) You do your best to maintain heat in the building or structure; or (2) You drain the equipment and shut off the supply if the heat is not maintained. d. Dishonesty Dishonest or criminal act by you, any of your partners, "members", officers, managers, employees, directors, trustees, authorized representatives or anyone to whom you entrust the property for any purpose: (1) Acting alone or in collusion with others; or (2) Whether or not occurring during the hours of employment. This exclusion does not apply to acts of destruction by your employees; but "theft' by employees is not covered. This exclusion does not apply to coverage that is provided under the Employee Theft Including ERISA Additional Coverage. e. False Pretense Voluntary parting with any property by you or anyone else to whom you have sold, given or otherwise entrusted the property if induced to do so by any fraudulent scheme, trick, device or false pretense. This exclusion does not apply to the Unauthorized Business Card Use Additional Coverage. f. Exposed Property SECTION I — PROPERTY, B. Exclusions, Rain, snow, ice or sleet to personal paragraphs 1.a., 1.b., 1.c., 1.d., 1.e., 1.f., 1.g., property in the open. 1.h. and 11 apply whether or not the loss g. Collapse 391-1003 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 42 of 81 (1) Collapse, including any of the following conditions of property or any part of the property: (a) An abrupt falling down or caving in; (b) Loss of structural integrity, including separation of parts of the property or property in danger of falling down or caving in; or (c) Any cracking, bulging, sagging, bending, leaning, settling, shrinkage or expansion as such condition relates to paragraphs (a) or (b) above. But if collapse results in a Covered Cause of Loss at the described premises, we will pay for the loss or damage caused by that Covered Cause of Loss. (2) This Exclusion g. does not apply: (a) To the extent that coverage is provided under SECTION I — PROPERTY, A. Coverage, 5. Additional Coverages, d. Collapse; or (b) To collapse caused by one or more of the following: (i) Any of the "specified causes of loss" (ii) Breakage of building glass; (iii) Weight of rain that collects on a roof; or (iv) Weight of people or personal property In. Pollution Discharge, dispersal, seepage, migration, release or escape of "pollutants" unless the discharge, dispersal, seepage, migration, release or escape is itself caused by any of the "specified causes of loss". But if the discharge, dispersal, seepage, migration, release or escape of "pollutants" results in any of the "specified causes of loss", we will pay for the loss or damage caused by any of the "specified causes of loss". i. Neglect Neglect of an insured to use all reasonable means to save and preserve property from further damage at and after the time of loss. j. Other Types of Loss (1) Wear and tear; (2) Rust or other corrosion, decay, deterioration, hidden or latent defect or any quality in property that causes it to damage or destroy itself; (3) Smog; (4) Settling, cracking, shrinking or expansion; (5) Nesting or infestation, or discharge or release of waste products or secretions, by insects, birds, rodents or other animals; or (6) Mechanical breakdown, including rupture or bursting caused by centrifugal force. This exclusion does not apply with respect to the breakdown of "computer equipment'. This exclusion does not apply to the Equipment Breakdown Additional Coverage. (7) The following causes of loss to personal property: (a) Dampness or dryness of the atmosphere; (b) Changes in or extremes of temperature; or (c) Marring or scratching. But if an excluded cause of loss that is listed in paragraphs (1), (2), (3), (4), (5), (6) and (7) above, results in any of the "specified causes of loss", "accident', "electronic circuity impairment' or building glass breakage, we will pay for the loss or damage caused by any of the "specified causes of loss", "accident', "electronic circuity impairment' or building glass breakage. k. Errors or Omissions Errors or omissions in: (1) Programming, processing or storing "electronic data" or in any "computer equipment' operations; or (2) Processing or copying "valuable papers and records". However, we will pay for direct physical loss or damage caused by resulting fire, "accident', "electronic circuity impairment' or explosion if these causes of loss would be covered by this Coverage Form. I. Installation, Testing, Repair Errors or deficiency in design, installation, testing, maintenance, modification or 391-1003 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 43 of 81 repair of your "computer equipment" (a) Where proper and adequate system including "software". report or reconditioning method is However, we will pay for direct physical debated, you and we agree to loss or damage caused by resulting fire or follow the usual and customary explosion if these causes of loss would be industry repair and reconditioning covered by this Coverage Form. practices; or m. Electrical Disturbance (b) For situations not resolved by paragraph (a) above, either party Electrical or magnetic injury, disturbance may demand that the matter be or erasure of "electronic data", except as resolved through Appraisal as provided for in SECTION I — PROPERTY, provided for elsewhere in the A. Coverage, 5. Additional Coverages, Coverage Form. and 6. Coverage Extensions. q. Continuous or Repeated Seepage or However, we will pay for direct loss or Leakage of Water damage caused by lightning. n. Artificially Generated Electricity Continuous repeated seepage or leakage of water, ter, or the presence or Artificially generated electric current condensation of humidity, moisture or including electric arcing, that disturbs vapor, that occurs over a period of 14 electrical devices, appliances or wires days or more. except as provided for in SECTION I — r. Authorized Access PROPERTY, A. Coverage, 5. Additional Coverages, u. — Equipment Breakdown. Loss resulting from a fraudulent: g But, if artificially generated electric current (1) Entry of "electronic data" or "computer results in fire, we will pay for the loss or program" into; or damage caused by fire. (2) Change of "electronic data" or o. Computer Processing Exclusion "computer program" within; (1) Errors or omissions in programming or any "computer equipment" owned, leased incorrect instructions to "hardware"; or operated by you by a person or (2) Electrical or magnetic damage, organization with authorized access to that disturbance of recordings or erasure "computer equipment", except when of electronic recordings, except as covered under SECTION I — PROPERTY, provided under SECTION 1 — A. Coverage, 5. Additional Coverages, PROPERTY, A. Coverage, 5. hh. Computer and Funds Transfer Additional Coverages, U. Fraud, paragraph b.. Equipment Breakdown. We will also s. Fraudulent Instructions pay for direct loss caused by lightning; Loss resulting from an "employee" or (3) Mechanical breakdown or malfunction, "financial institution" acting upon any component failure, faulty installation or instruction to: blowouts; except as provided for (1) Transfer, pay or deliver "money", under SECTION I — PROPERTY, A. "securities" or "other property"; or Coverage, 5. Additional Coverages, u. Equipment Breakdown; or (2) Debit or delete your account; which (4) Faulty instruction or incorrect usage, instruction proves to be fraudulent, except when covered under SECTION including changes in arrangements or I — PROPERTY, A. Coverage, 5. parts. Additional Coverages, hh. p. Loss of Warranty Computer and Funds Transfer Loss of warranty or similar future or Fraud, paragraphs a.(2) and b.. potential benefit even when following a 3. We will not pay for loss or damage caused by covered loss or covered damage. or resulting from paragraphs a., b. and c. (1) Loss of this type does not meet direct below. But if an excluded cause of loss that is physical loss or damage. listed in paragraphs a., b. and c. below, results in a Covered Cause of Loss, we will (2) We agree that reasonable repair or pay for the loss or damage caused by that reconditioning measures be pursued Covered Cause of Loss. to ensure soundness of property after loss or damage: a. Weather Conditions 391.1003 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 44 of 81 But this exclusion only applies if weather conditions contribute in any way with a cause or event excluded in SECTION I — PROPERTY, B. Exclusions, paragraph 1. to produce the loss or damage. b. Acts or Decisions Acts or decisions, including the failure to act or decide, of any person, group, organization or governmental body. c. Negligent Work Faulty, inadequate or defective: (1) Planning, zoning, development, surveying, siting; (2) Design, specifications, workmanship, repair, construction, renovation, remodeling, grading, compaction; (3) Materials used in repair, construction, renovation or remodeling; or (4) Maintenance; of part or all of any property on or off the described premises. 4. Additional Exclusion The following applies only to the property specified in this Additional Exclusion: Loss or Damage to Products We will not pay for loss or damage to any merchandise, goods or other product caused by or resulting from error or omission by any person or entity (including those having possession under an arrangement where work or a portion of the work is outsourced) in any stage of the development, production or use of the product, including planning, testing, processing, packaging, installation, maintenance or repair. This exclusion applies to any effect that compromises the form, substance or quality of the product. But if such error or omission results in a Covered Cause of Loss, we will pay for the loss or damage caused by that Covered Cause of Loss. 5. Business Income and Extra Expense Exclusions We will not pay for: a. Any Extra Expense or increase of Business Income loss caused by or resulting from: (1) Delay in rebuilding, repairing or replacing the property or resuming "operations", due to interference at the location of the rebuilding, repair or replacement by strikers or other persons; (2) "Suspension', lapse or cancellation of any license, lease or contract. But if the "suspension", lapse or cancellation is directly caused by the "suspension" of "operations", we will cover such loss that affects your Business Income during the "period of restoration" in accordance with the terms of SECTION I — PROPERTY, A. Coverage, 5. Additional Coverages, f. Business Income, (2) Extended Business Income. (3) Damage or destruction of "finished stock"; the time required to reproduce "finished stock" or (4) Any other consequential loss. Paragraph 5.a.(3) does not apply to Extra Expense. C. Limits of Insurance 1. The most we will pay for loss or damage in any one occurrence is the applicable Limits of Insurance of SECTION I — PROPERTY shown in the Declarations. 2. The amounts of insurance applicable to the Coverage Extensions and the following Additional Coverages apply in accordance with the terms of such coverages and are in addition to SECTION I — PROPERTY, C. Limits of Insurance: a. Fire Department Service Charge; b. Pollutant Clean -Up and Removal; c. Civil Authority; d. Money Orders and Counterfeit Money; e. Forgery or Alteration; f. Ordinance or Law; g. Business Income from Dependent Properties; h. Glass Expenses; I. Fire Protection Equipment Recharge j. Employee Theft; k. Rewards — Arson and Theft; I. Computer Equipment; m. Tenant Signs (Tenants Only); n. Commercial Tools and Small Equipment; o. Installation; p. Fine Arts; q. Sales Representative Samples; r. Leasehold Interest (Tenants Only); s. Unauthorized Business Credit Card Use; t. Deferred Payments; 391-1003 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 45 of 81 u. Money and Securities; the Limit of Insurance for the v. Electronic Vandalism; building. w. Interruption of Computer Operations; 4. Business Personal Property Limit — x. Theft of Telephonic Services; Seasonal Increase y. Computer and Funds Transfer Fraud; a. The Limit of Insurance for Business Personal Property will increase by 25% to z. Tenant Building Insurance — When Your provide for seasonal variations. Lease Requires You to Provide Insurance; b. This increase will apply only if the Limit of or Insurance shown for Business Personal aa. Tenant Business Personal Property Property in the Declarations is at least Insurance — When Your Lease Requires 100% of your average monthly values You to Provide Insurance. during the lesser of: 3. Building Limit —Increase (1) The 12 months immediately preceding If Covered Property is written on a the date the loss or damage occurs; or Replacement Cost basis: (2) The period of time you have been in a. The Limit of Insurance for Buildings will be business as of the date the loss or revised by changes that occurred In the damage occurs. cost of construction during the preceding D. Deductibles policy year. 1. We will not pay for loss or damage in any one b. The amount of increase will be determined occurrence until the amount of loss or damage by reports of a recognized valuation exceeds the Deductible shown in the method. Declarations. We will then pay the amount of c. We will inform you of such adjusted loss or damage in excess of the Deductible up values. Upon their acceptance, you agree to the applicable limit in SECTION 1 — to pay any additional premium for the PROPERTY, C. Limit of Insurance. adjusted limit. Payment of your renewal 2. No Deductible applies to the following premium, which includes the revised Limit Additional Property Coverages and Extensions of Insurance, shall constitute acceptance. of Coverage: d. We will pay the replacement cost value of a. Fire Department Service Charge; the damaged portion of the building at the b. Fire Protection Equipment Recharge; time of loss, but not more than 125% of the Limit of Insurance for Building if: c. Business Income; (1) The amount of any loss covered by d. Extra Expense; this Coverage Form exceeds the Limit e. Civil Authority; of Insurance for Building stated in the f. Key Replacement and Lock Repair; Declarations for the damaged Building; and g. Deferred Payment; (2) The actual repair or replacement is h. Debris Removal; completed within one year of the date 1. Rewards —Arson, Theft and Vandalism; of loss. j, ERISA Compliance; f. The Building Limit— Increase clause will k. Preservation of Property; not apply if: (1) You do not accept the adjusted value; I. Pollutant Clean -Up and Removal; or m. Ordinance or Law; (2) You do not inform us of changes to n. Leasehold Interest (Tenants Only); covered Building: o. Unauthorized Business Credit Card Use; (a) Within sixty (60) days of the date p. Business Income from Dependent any additions, improvements or Properties; and enlargements to the building are q. Inventory and Loss Appraisal. begun, and (b) When the replacement value of 3. A $250 Deductible applies to the following the changes are more than 5% of Coverages: a. Glass — Interior and Exterior; and 391-1003 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 46 of 81 b. Glass Expenses. 4. A $500 Deductible applies to all of the Additional Property Coverages and Extensions of Coverage scheduled on the Declarations, except Equipment Breakdown, unless otherwise indicated in paragraphs 2., 3. or 5. of this section. 5. A $1,000 Deductible applies to the following Additional Property Coverages and Extensions of Coverage: a. Employee Theft (except ERISA Compliance); b. Sales Representative Samples; c. Installation; d. Personal Property Off Premises; e. Personal Property In Transit. 6. The Deductible shown in the Declarations for the Equipment Breakdown Additional Coverage applies to the Additional Coverage for Equipment Breakdown. 7. Each Deductible shall be applied separately, but only to the coverage specified. The total Deductible for all losses in one occurrence will be the highest Deductible amount that applies to that occurrence. 8. The Business Income Waiting Period shown on the Declarations Page for the Business Income and Civil Authority Additional Coverages is applicable in addition to a Deductible. E. Property Loss Conditions 1. Abandonment There can be no abandonment of any property to us. 2. Appraisal If you and we disagree on the amount of a covered loss, either may make written demand for an appraisal of the loss. In this event, each party will select a competent and impartial appraiser. The two appraisers will select an umpire. If they cannot agree, either may request that selection be made by a judge of a court having jurisdiction. The appraisers will state separately the amount of loss. If they fail to agree, they will submit their differences to the umpire. A decision agreed to by any two will be binding. Each party will: a. Pay its chosen appraiser; and b. Bear the other expenses of the appraisal and umpire equally. If there is an appraisal, we will still retain our right to deny the claim. 3. Duties in the Event of Loss or Damage a. You must see that the following are done in the event of loss or damage to Covered Property: (1) Notify the police if a law may have been broken. (2) Give us prompt notice of the loss or damage. Include a description of the property involved. (3) As soon as possible, give us a description of how, when and where the loss or damage occurred. (4) Take all reasonable steps to protect the Covered Property from further damage, and keep a record of your expenses necessary to protect the Covered Property, for consideration in the settlement of the claim. This will not increase SECTION I — PROPERTY, C. Limits of Insurance. However, we will not pay for any subsequent loss or damage resulting from a cause of loss that is not a Covered Cause of Loss. Also, if feasible, set the damaged property aside and in the best possible order for examination. (6) At our request, give us complete inventories of the damaged and undamaged property. Include quantities, costs, values and amount of loss claimed. (6) As often as may be reasonably required, permit us to inspect the property proving the loss or damage and examine your books and records. Also permit us to take samples of damaged and undamaged property for inspection, testing and analysis, and permit us to make copies from your books and records. (7) Send us a signed, sworn proof of loss containing the information we request to investigate the claim. You must do this within 60 days after our request. We will supply you with the necessary forms. (8) Cooperate with us in the investigation or settlement of the claim. (9) Resume all or part of your "operations" as quickly as possible. b. We may examine any insured under oath, while not in the presence of any other insured and at such times as may be reasonably required, about any matter 391-1003 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 47 of 81 relating to this insurance or the claim, (b) We will not pay on a replacement including an insured's books and records. cost basis for any loss or damage: In the event of an examination, an (1) Until the loss or damaged insured's answers must be signed. property is actually repaired or 4. Legal Action Against Us replaced; No one may bring a legal action against us (ii) Unless the repairs or under this insurance unless: replacement are made as a. There has been full compliance with all of soon as reasonably possible the terms of this insurance; and after the loss or damage; and b. The action is brought within 2 years after (it!) Unless the repairs or the date on which the direct physical loss replacement are completed or damage occurred. The 2 year limitation within 24 months for personal also applies to indirect or consequential property or for buildings and loss covered under this Coverage Form. other real property after the loss or damage, unless 5. Loss Payment extended in writing by us. In the event of loss or damage covered by this However, if the cost to repair or Coverage Form: replace a damaged building is a. At our option, we will either: $2,500 or less we will determine (1) Pay the value of lost or damaged the value at replacement cost property; without deduction for depreciation. (2) Pay the cost of repairing or replacing (c) We will not pay more for loss or the lost or damaged property; damage on a replacement cost basis than the least of the (3) Take all or any part of the property at following amounts: an agreed or appraised value; or (1) The cost to replace, on the (4) Repair, rebuild or replace the property same premises, the lost or with other property of like kind and damaged property with other quality, subject to paragraph d., property: p y subparagraph (1)(d) below. 1 1) Of comparable material b. We will give notice of our intentions within and quality; and 30 days after we receive the sworn proof of loss. 2) Used for the same c. We will not pay you more than your purpose; or financial interest in the Covered Property. (ii) The amount that you actually d. We will determine the value of Covered spend that is necessary to repair or replace the lost or Property as follows: damaged property. (1) At replacement cost without deduction If a building is rebuilt at a new for depreciation except as provided in location, the recoverable amount paragraphs (2), (3), (4), (5), (6), (7), is limited to the cost which would (8), (9), (10), (11), (12), (13), (14), (15) have been incurred had the and (16) below. building been built at the original (a) You may make a claim for loss or premises. damage covered by this insurance (d) The cost to repair, rebuild or on an actual cash value basis replace does not include the instead of a replacement cost increased cost attributable to basis. In the event you elect to enforcement of any ordinance or have loss or damage settled on an law regulating the construction, actual cash value basis, you may use or repair of any property. still make a claim on a replacement cost basis if you (2) If the Declarations indicate the Actual notify us of your intent to do so Cash Value applies to Building or within 180 days after the loss or Personal Property, paragraph (1) damage, above does not apply to that property. Instead, we will determine the value of that property at the actual cash value. 391-1003 08 16 Includes copyrighted material of Insurance Services Office, Inc., with Its permission. Page 48 of 81 (3) The following property at actual cash (ii) Divide the amount determined value: in paragraph (1) above by the (a) Used or second-hand number of days from the merchandise held in storage or for installation of improvements sale; to the expiration of the lease. (b) Property of others. However, if an If your lease contains a renewal item(s) of personal property of option, the expiration of the others is subject to a written renewal option period will replace contract which governs your the expiration of the lease in this liability for loss or damage to that procedure. item(s), then valuation of that (c) Nothing if others pay for repairs or item(s) will be based on the replacement, amount for which you are liable (6) "Valuable papers and records" at the under such contract, but not to cost of restoration or replacement, exceed the lesser of the including the cost of data entry, re - replacement cost of the property programming, computer consultation or the applicable Limit of services and the "media" on which the Insurance; data or programs reside. To the extent (c) Household contents, except that the contents of the "valuable personal property in apartments or papers and records" are not restored, rooms furnished by you as the "valuable papers and records" will landlord; be valued at the cost of replacement (d) Manuscripts; with blank materials of substantially identical type. (a) Works of art, "antiques" or rare articles, including but not limited (7) "Money" at its face value; and to, etchings, pictures, statuary, (8) "Securities" at their value at the close marbles, bronzes, porcelains, of business on the day the loss is glassware and bric-a-brac not "discovered". otherwise covered in SECTION I — (g) Accounts Receivable: PROPERTY, A. Coverage, 5. Additional Coverage, x. Fine (a) If you cannot accurately establish Arts; or the amount of accounts receivable (f) Commercial Tools and Small outstanding as of the time of loss or damage: Equipment and Contractors Tools and Equipment. This does not (1) We will determine the total of apply to your Commercial Tools the average monthly amounts and Small Equipment permanently of accounts receivable for the installed or exclusively used at the 12 months immediately described premises. preceding the month in which (4) Glass at the cost of replacement with the loss or damage occurs; and safety glazing material if required by law. (ii) We will adjust that total for (5) Tenant's Improvements and any normal fluctuations in the Betterments at: amount of accounts receivable for the month in (a) Replacement cost if you make which the loss or damage repairs promptly. occurred or for any (b) A proportion of your original cost if demonstrated variance from you, as the tenant, do not make the average for that month. repairs promptly. We will (b) The following will be deducted determine the proportionate value from the total amount of accounts as follows: receivable, regardless of how that (i) Multiply the original cost by amount is established: the number of days from the (1) The amount of the accounts loss or damage to the for which there is no loss or expiration of the lease; and damage; 391-1003 08 16 Includes copyrighted matedal of Insurance services Office, Inc., with its permission. Page 49 of 81 (ii) The amount of the accounts g. We will pay for covered loss or damage that you are able to re- within 30 days after we receive a properly establish or collect; completed sworn proof of loss, provided (iii) An amount to allow for you have complied with all of the terms of probable bad debts that you this Coverage Form, and are normally unable to collect; (1) We have reached agreement with you and on the amount of loss; or (iv) All unearned interest and (2) An appraisal award has been made. service charges. h. In settling covered losses involving a party (10)"Stock" you have sold but not wall, we will pay a proportion of the loss, delivered at the selling price less to the party wall based on your interest in discounts and expenses you the wall in proportion to the interest of the otherwise would have had. owner of the adjoining building. A party (11)"Finished stock" you manufactured at wall is a wall that separates and is selling price less discounts and common to adjoining buildings that are expenses you otherwise would have owned by different parties. However, if you had. elect to repair or replace your building and the owner of the adjoining building elects (12)Personal Property in Transit (other not to repair or replace that building, we than "stock' you have sold) at the will pay you the full value of the loss to the amount of invoice, including your party wall, subject to all applicable policy prepaid or advanced freight charges provisions including Limits of Insurance, and other charges which may have the Valuation and all other provisions of accrued or become legally due since this Loss Payment Condition. Our the shipment. If you have no invoice, payment under the provisions of this actual cash value will apply. paragraph does not alter any right of (13)Precious metals, such as gold, silver subrogation we may have against any and platinum, at the average market entity, including the owner or insurer of the cost of replacements on the date of adjoining building, and does not alter the loss, or the actual cost of the terms of SECTION III — COMMON replacement, if less. POLICY CONDITIONS, K. Transfer of (14)"Fine Arts" Rights of Recovery Against Others to Us in this policy. We will pay the lesser of: 6. Recovered Property (a) The market value at the time of loss or damage; If either you or we recover any property after loss settlement, that party must give the other (b) The reasonable cost of repair or prompt notice. At your option, you may retain restoration to the condition the property. But then you must return to us immediately before the covered the amount we paid to you for the property, loss or damage; or We will pay recovery expenses and the (c) The cost of replacement with expenses to repair the recovered property, substantially identical property. subject to SECTION I — PROPERTY, C the a. Our payment for loss of or damage to Limits of Insurance. personal property of others will only be for 7. Vacancy the account of the owners of the property. a. Description of Terms We may adjust losses with the owners of lost or damaged property if other than you. (1) As used in this Vacancy Condition, the If we pay the owners, such payments will term building and the term vacant satisfy your claims against us for the have the meanings set forth in owners' property. We will not pay the paragraphs (a) and (b) below: owners more than their financial interest in (a) When this policy is issued to a the Covered Property, tenant, and with respect to that f. We may elect to defend you against suits tenant's interest in Covered arising from claims of owners of property. Property, building means the unit We will do this at our expense. or suite rented or leased to the tenant. Such leased space is vacant when it does not contain 391.1003 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 50 of 81 enough business personal property to conduct customary .operations". (b) When this policy is issued to the F owner or general lessee of a building, building means the entire building. Such building is vacant unless at least 31% of its total square footage is: (1) Rented to a lessee or sub- lessee and used by the lessee or sub -lessee to conduct its customary operations; and/or (ii) Used by the building owner to conduct customary operation. (2) Buildings under construction or renovation are not considered vacant when customary "operations" cannot be conducted as a direct result of the construction or renovation. b. Vacancy Provisions If the building or leased space where loss or damage occurs has been vacant for more than 60 consecutive days before that loss or damage occurs: (1) We will not pay for any loss or damage caused by any of the following even if they are Covered Causes of Loss: (a) Vandalism; (b) Sprinkler leakage due to freezing, unless you have protected the system against freezing; (c) Building glass breakage; (d) Water damage; (a) "Theft"; or (f) Attempted "theft". (2) With respect to Covered Causes of Loss other than those listed in paragraphs (a), (b), (c), (d), (e) and (f) above, we will reduce the amount we would otherwise pay for the loss or damage by 15%. 8. Pair, Sets or Parts For pairs or sets, we will either: (a) Repair or replace any part to restore the value and condition of the pair or set to that immediately before the covered loss or damage; or (c) Covered Property consisting of several parts when complete, we will only pay for the value of the lost or damaged part. Property General Conditions 1. Control of Property Any act or neglect of any person other than you beyond your direction or control will not affect this insurance. The breach of any condition of this Coverage Form at any one or more locations will not affect coverage at any location where, at the time of loss or damage, the breach of condition does not exist. 2. Mortgageholders a. The term mortgageholder includes trustee. b. We will pay for covered loss of or damage to buildings or structures to each mortgageholder shown in the Declarations in their order of precedence, as interests may appear. c. The mortgageholder has the right to receive loss payment even if the mortgageholder has started foreclosure or similar action on the building or structure. d. If we deny your claim because of your acts or because you have failed to comply with the terms of this Coverage Form, the mortgageholder will still have the right to receive loss payment if the mortgageholder: (1) Pays any premium due under this policy at our request if you have failed to do so; (2) Submits a signed, sworn proof of loss within 60 days after receiving notice from us of your failure to do so; and (3) Has notified us of any change in ownership, occupancy or substantial change in risk known to the mortgageholder. All of the terms of this Coverage Form will then apply directly to the mortgageholder. e. If we pay the mortgageholder for any loss or damage and deny payment to you because of your acts or because you have failed to comply with the terms of this Coverage Form: (1) The mortgageholder's rights under the mortgage will be transferred to us to the extent of the amount we pay; and (b) Pay the difference between the value of (2) The mortgageholder's right to recover the pair or set before and after the the full amount of the covered loss or damage. 391-1003 08 16 Includes copyrighted material or Insurance Services Office, Inc., with its permission. Page 51 of 81 mortgageholder's claim will not be impaired. At our option, we may pay to the mortgageholder the whole principal on the mortgage plus any accrued interest. In this event, your mortgage and note will be transferred to us and you will pay your remaining mortgage debt to us. f. If we cancel this policy, we will give written notice to the mortgageholder at least: (1) 10 days before the effective date of cancellation if we cancel for your nonpayment of premium; or (2) 30 days before the effective date of cancellation if we cancel for any other reason. g. If we elect not to renew this policy, we will give written notice to the mortgageholder at least 10 days before the expiration date of this policy. 3. No Benefit to Bailee No person or organization, other than you, having custody of Covered Property will benefit from this insurance. 4. Policy Period, Coverage Territory Under SECTION I — PROPERTY: a. We cover loss or damage commencing: (1) During the policy period shown in the Declarations; and (2) Within the coverage territory or, with respect to property "in transit", while it is between points in the coverage territory. b. The coverage territory is: (1) The United States of America (including its territories and possessions); (2) Puerto Rico; and (3) Canada. 5. Protective Devices a. If you received a discount to the property premium of this policy because of the existence of one of the following protective devices, you are required to maintain that protective device. Existence of an applicable protective devices credit can be found on the Declarations Page. b. Protective devices include Automatic Sprinkler Systems including related supervisory services, Automatic Fire Alarms and Central Station Security Alarms. c. We will not pay for loss or damage caused by a Covered Cause of Loss which a device is intended to protect against if you: (1) Knew of any suspension or impairment in any protective device and failed to notify us of that fact; or (2) Failed to maintain any protective device over which you had control in complete working order. If part of an Automatic Sprinkler System is shut off due to breakage, leakage, freezing conditions or opening of sprinkler heads, notification to us will not be necessary if you can restore full protection within 48 hours. 6. Increase in Hazard We will not pay for loss or damage when there has been a material increase in hazard that is within your knowledge or control. This condition applies to any and all portions of a claim. G. Property Definitions 1. "Accident" a. "Accident" means a fortuitous event that causes direct physical damage to "covered equipment". The event must be one of the following: (1) Mechanical breakdown, including rupture or bursting caused by centrifugal force; (2) Artificially generated electrical current, including electric arcing, that disturbs electrical devices, appliances or wires; (3) Explosion of steam boilers, steam pipes, steam engines or steam turbines owned or leased by you, or operated under your control; (4) Loss or damage to steam boilers, steam pipes, steam engines or steam turbines caused by or resulting from any condition or event inside such equipment; or (5) Loss or damage to hot water boilers or other water heating equipment caused by or resulting from any condition or event inside such boilers or equipment. b. None of the following is an "accident": (1) Defect, programming error, programming limitation, computer virus, malicious code, loss of data, loss of access, loss of use, loss of functionality or other condition within 391-1003 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 52 of 81 or involving data or "media" of any kind; or (2) Misalignment, miscalibration, tripping off-line, or any condition which can be corrected by resetting, tightening, adjusting or cleaning, or by the performance of maintenance. However, if an "accident" results, we will pay for the resulting loss, damage or expense caused by that "accident". 2. "Antique" or "antiques" means an object having value because its: a. Craftsmanship is in the style or fashion of former times; and b. Age is 100 years old or older. 3. "Cloud computing services" means professional, on -demand, self-service data storage or data processing services provided through the Internet or over telecommunications lines. This includes services known as IaaS (infrastructure as a service), PaaS (platform as a service), Saes (software as a service) and NaaS (network as a service). This includes business models know as public clouds, community clouds and hybrid clouds. "Cloud computing services" include private clouds if such services are owned and operated by a third party. 4. "Computer equipment" means: a. "Hardware" and related component parts. Component parts include but are not limited to modems, routers, printers, keyboards, monitors, and scanners; b. "Software"; and c. "Protection and control equipment". "Computer equipment" does not mean "Computer equipment" used to operate production -type machinery or equipment. 5. "Computer hacking" means an unauthorized intrusion by an individual or group of individuals, whether employed by you or not, into "hardware" or "software", a Web site, or a computer network and that results in but is not limited to: a. Deletion, destruction, generation, or modification of "software"; b. Alteration, contamination, corruption, degradation, or destruction of the integrity, quality or performance of "software"; c. Observation, scanning, or copying of "electronic data", "programs and applications", and "proprietary programs"; d. Damage, destruction, inadequacy, malfunction, degradation, or corruption of any "hardware' or "media" used with "hardware"'; or e. Denial of access to or denial of services from "hardware", "software', computer network, or Web site including related "software". 6. "Computer program" means a set of related electronic instructions, which direct the operation and function of a computer or devices connected to it, which enable the computer or devices to receive, process, store or send "electronic data". 7. "Computer Virus" means the introduction into "hardware", "software", computer network, or Web site of any malicious, self -replicating electronic data processing code or other code and that is intended to result in, but is not limited to: a. Deletion, destruction, generation, or modification of "software'; b. Alteration, contamination, corruption, degradation, or destruction of the integrity, quality, or performance of "software"; c. Damage, destruction, inadequacy, malfunction, degradation, or corruption of any "hardware" or "media" used with "hardware"; or d. Denial of access to or denial of services from "hardware", "software", computer network, or Web site including related "software". 8 "Counterfeit money" means an imitation of "money" that is intended to deceive and to be taken as genuine. 9. "Covered equipment" means Covered Property which, during normal usage, operates under vacuum or pressure, other than the weight of its contents, or that generates, transmits or utilizes energy. "Covered equipment" may utilize conventional design and technology or new or newly commercialized design and technology. "Covered equipment" does not include: a. Structure, foundation, cabinet or compartment; b. Insulating or refractory material; c. Sewer piping, buried vessels or piping, or piping forming a part of a sprinkler or fire suppression system; d. Water piping other than boiler feedwater piping, boiler condensate return piping or 391-1003 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 53 of 81 water piping forming a part of a incurred, regardless of when the act or refrigerating or air conditioning system; acts causing or contributing to such loss e. Dragline, excavation equipment or occurred, even though the exact amount construction equipment; or details may not be known. f. Vehicle, meaning any machine or b. "Discover" or "Discovered" also means the apparatus that is used for transportation or time when you first receive notice of an moves under its own power or any actual or potential claim in which it is equipment mounted on a vehicle. Vehicle alleged that you are liable to a third party includes but is not limited to: car, truck, under circumstances which, if true, would bus, trailer, train, aircraft, watercraft, constitute a loss under this policy. forklift, bulldozer, tractor or harvester. 15. "Electronic circuitry" means microelectronic However, any property that is stationary, components, including but not limited to circuit permanently installed at a covered boards, integrated circuits, computer chips location and that receives electrical power and disk drives. from an external power supplier will not be 16. "Electronic circuitry impairment" considered a vehicle; g. Equipment manufactured by you for sale a. "Electronic circuitry impairment" means a fortuitous event involving "electronic or circuitry' within "covered equipment" that h. Satellite, spacecraft or any equipment causes the "covered equipment" to mounted on a satellite or spacecraft. suddenly lose its ability to function as it 10. "Data" means a representation of information, had been functioning immediately before knowledge, facts, concepts or instructions such event. This definition is subject to the which are being processed or have been conditions specified in b., c. and d. below. processed in "computer equipment". b. We shall determine that the reasonable 11. "Data records" means files, documents and and appropriate remedy to restore such information in an electronic format and that are "covered equipment's" ability to function is stored within "electronic data". the replacement of one or more "electronic circuitry" components of the "covered 12. "Denial of service attack" means the malicious equipment." direction or a high volume of worthless inquiries to website or e-mail destinations, c. The "covered equipment" must be owned effectively denying or limiting legitimate or leased by you, or operated under your access regardless of whether or not damage control. to "computer equipment" results. d. None of the following is an "electronic 13. "Dependent property" or "dependent circuitry impairment": properties" means the property owned by (1) Any condition that can be reasonably others whom you depend upon to: remedied by: a. Deliver materials or services to you or to (a) Normal maintenance, including others for your account. But services do but not limited to replacing not mean water supply services, expendable parts, recharging wastewater removal services, batteries or cleaning; communication supply services or power (b) Rebooting, reloading or updating supply services; software or firmware; or b. Accept your products or services; (c) Providing necessarypower or c. Manufacture products for delivery to your supply. customers under contract of sale; or (2) Any condition caused by or related to: d. Attract customers to your business. (a) Incompatibility of the "covered The "dependent property" must be located equipment" with any software or in the coverage territory of this Coverage equipment installed, introduced or Form. networked within the prior 30 14. "Discover" or "Discovered" means: days; or a. The time when you first become aware of (b) Insufficient size, capability or facts which would cause a reasonable capacity of the "covered person to assume that a loss of a type equipment." covered by this policy has been or will be 391-1003 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 54 of 81 (3) Exposure to adverse environmental conditions, including but not limited to change in temperature or humidity, unless such conditions result in an observable loss of functionality. Loss of warranty shall not be considered an observable loss of functionality. 17. "Electronic data" means files, documents, information and "programs and applications" in an electronic format and that are stored on "media". 18. "Electronic Vandalism" means "computer hacking", "computer virus" or a "denial of service attack". "Electronic vandalism" does not include the "theft" of any property or services. 19. "Employee" or "employees" means: a. Any natural person or persons: (1) While in your service and for 30 days after termination of service; and (2) Who you compensate directly by salary, wages or commissions; and (3) Who you have the right to direct and control while performing services for you; b. Any natural person who is furnished temporarily to you: (1) To substitute for a permanent employee, as defined in paragraph a. above, who is on leave; or (2) To meet seasonal or short-term workload conditions; c. Any natural person or persons who is leased to you under a written agreement between you and a labor leasing firm, to perform duties related to the conduct of your business, but does not mean a temporary "employee" as defined in paragraph b. above; d. Any natural person who is a former "employee", partner, "manager", director or trustee retained as a consultant while performing services for you; or e. Any natural person who is a guest student or intern pursuing studies or duties, excluding, however, any such person while having care and custody or property outside the described premises; (2) A director or trustee of yours while that person is engaged in handling "funds" or "other property" of any "employee benefit plan"; "Employee" does not mean any agent, broker, factor, commission merchant, consignee, independent contractor or representative of the same general character not specified in paragraph 14. of this section. 20. "Financial institution" means: a. With regard to SECTION I — PROPERTY, A. Coverage, 5. Additional Coverage, s. Money and Securities: (1) A bank, savings bank, savings and loan association, trust company, credit union or similar depository institution; or (2) An insurance company. b. SECTION I — PROPERTY, A. Coverage, 5. Additional Coverage, hh. Computer and Funds Transfer Fraud: (1) A bank, savings bank, savings and loan association, trust company, credit union or similar depository institution; (2) An insurance company; or (3) A stock brokerage firm or investment com pany. c. Other than SECTION I — PROPERTY, A. Coverage, 5. Additional Coverages, s. Money and Securities and hh. Computer and Funds Transfer Fraud, any financial institution. 21. "Fine arts" means paintings, etchings, pictures, tapestries, rare art glass, art glass windows, valuable rugs, statuary, sculptures, "antique" jewelry, bric-a-brac, porcelains and similar property of rarity, historical value or artistic merit. 22. "Finished stock" means stock you have manufactured. "Finished stock" also includes whiskey and alcoholic products being aged. "Finished stock" does not include "stock" you have manufactured that is held for sale on the premises of any retail outlet. 23. "Flood" means a general and temporary condition of partial or complete inundation of normally dry land areas due to: f. Any natural person who is: a. Surface water or waves, tides, tidal waves, (1) A trustee, officer, employee, tsunami, overflow of any body of water or administrator or manager, except an their spray, all whether driven by wind or administrator or manager who is an not (including storm surge); independent contractor, of any "employee benefit plan"; and 391-1003 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 55 of 81 b. The unusual or rapid accumulation of runoff of surface waters from any source; c. Mudslides or mudflows which are caused by "flood" water. A mudslide or mudflow involves a river of liquid and flowing mud on the surface of normally dry land areas as when earth is carried by a current of water and deposited along the path of the current. d. The release of water impounded by a dam, levee, dike, seawall or "flood" control device, whether driven by wind or not (including storm surge). When a "flood" is a continuous or protracted event it will constitute a single "flood" occurrence. 24. "Forgery" means the signing of the name of another person or organization with intent to deceive; it does not mean a signature which consists in whole or in part of one's own name 29 signed with or without authority, in any capacity, for any purpose. 25. "Fraudulent instruction" means: a. An electronic, telegraphic, cable, teletype, tele facsimile or telephone instruction which purports to have been transmitted by you, but which was in fact fraudulently transmitted by someone else without your knowledge or consent; b. A written instruction (other than those described in SECTION I — PROPERTY, A. Coverage, 5. Additional Coverages, It. Forgery or Alteration) issued by you, which was forged or altered by someone other than you without your knowledge or consent or which purports to have been issued by you, but was in fact fraudulently issued without your knowledge or consent. 26. "Funds" means "money" and "securities". 27. "Fungi" means any type or form of fungus, including mold or mildew, and any mycotoxins, spores, scents or by-products produced or released by "fungi". 28. "Hardware" means a network of electronic machine components (microprocessors) capable of accepting instructions and information, processing the information according the instructions, and producing desired results. "Hardware" includes but is not limited to: a. Mainframe and mid -range computers and servers; c. Portable electronic devices. Portable electronic devices include laptops, tablets, e-readers, smartphones or other lightweight, hand-held or wearable devices capable of storing, retrieving and processing data; and d. Peripheral data processing equipment, including but not limited to printers, keyboards, monitors, and modems. "Hardware" does not mean electronic items that are not similar to the items listed in a., b., c. and A. above. "Hardware" does not include: e. Diagnostic equipment; If. Electronic items that contain a computer to perform functions other than "hardware"; and g. Peripheral data processing equipment valued more than the "hardware" itself. "Hazardous substance" means any substance that is hazardous to health or has been declared to be hazardous to health by a governmental agency. 30. "In transit" means in the course of shipment from or to the premises shown in the Declarations. It includes such shipments while temporarily stopped or delayed, incidental to the delivery. 31. "Manager" or "managers" means a person or persons serving in a directorial capacity for a limited liability company (LLC). 32. "Media" means an instrument that is used with "hardware" and on which "electronic data", "programs and applications", and "proprietary programs" can be recorded or stored. "Media" includes, but is not limited to, films, tapes, cards, discs, drums, cartridges, cells, DVDs, CD-ROMs and other portable data devices. 33. "Member" or "Members" means an owner of a limited liability company represented by its membership interest, who also may serve as a "manager". 34. "Messenger" means you, or a relative of yours, or any of your partners or "members", or any "employee" while having care and custody of property away from the described premises. 35. "Money" means: a. Currency, coins and bank notes in current use and having a face value; b. Traveler's checks and money orders held for sale to the public; and b. Personal computers and workstations; C. In addition, includes: 391.1003 08 16 Includes copyrighted material of Insurance Services Office, Inc., with Its permission. Page 56 of 81 (1) For the purposes of SECTION I — PROPERTY, A. Coverage, 5. Additional Coverages, p. Employee Theft including ERISA Compliance and k. Forgery or Alteration, deposits in your account at any "financial institution"; and (2) For the purposes of SECTION I — PROPERTY, A. Coverage, 5. Additional Coverage hh. Computer and Funds Transfer Fraud, deposits in your account at a "financial institution" as defined in SECTION I —PROPERTY, G. Property Definitions, paragraph 19.b.. 36. "One equipment breakdown" means: If an initial "accident" or "electronic circuitry impairment" causes other "accidents" or "electronic circuitry impairments," all will be considered "one equipment breakdown." All "accidents" or "electronic circuitry impairments" that are the result of the same "accident" or "electronic circuitry impairment" will be considered "one equipment breakdown." 37. "Operations" means your business activities occurring at the described premises. 38. "Other property" means tangible property other than "money" and "securities" that has intrinsic value. "Other property" does not include computer programs, "electronic data" or any property specifically excluded under this Coverage Form. 39. "Payment processing device" means any electronic device used to process credit, debit or charge card transactions, including but not limited to, digital pen pad devices, PIN pad devices, Automatic Teller Machines (ATMs), credit card processing machines. 40. "Payroll expense": a. Means payroll expenses for all your "employees" except: (1) Officers; (2) Executive; (3) Department Managers; (4) "Employees" under contract; and (5) Additional Exemptions shown in the Declarations as: (a) Job classifications; or (b) "Employees". b. Includes: (1) Payroll; (2) Employee Benefits, if directly related to payroll; (3) FICA payments you pay; (4) Union dues you pay; and (5) Workers' Compensation premiums. 41. "Period of Restoration' a. Means the period of time that: (1) Begins: (a) After the number of hours shown as the Business Income Waiting Period in the Declarations after the time of direct physical loss or damage for Business Income Coverage; or (b) Immediately after the time of direct physical loss or damage for Extra Expense Coverage; caused by or resulting from any Covered Cause of Loss at the described premises; and (2) Ends on the earlier of: (a) The date when the property at the described premises should be repaired, rebuilt or replaced (to a condition permitting occupancy) with reasonable speed and similar quality; or (b) The date when business is resumed at a new permanent location: or (c) Exhaustion of the number of consecutive months as shown on the Policy Declarations Page. b. Does not include any increased period required due to the enforcement of any ordinance or law that: (1) Regulates the construction, use or repair, or requires the tearing down of any property; or (2) Requires any insured or others to test for, monitor, clean up, remove, contain, treat, detoxify or neutralize, or in any way respond to or assess the effects of "pollutants". The expiration date of this policy will not cut short the "period of restoration". 42. "Perishable goods" means personal property; a. Maintained under controlled temperature or humidity conditions for preservation; and b. Susceptible to loss or damage if the controlled temperature or humidity conditions change. 391.1003 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 57 of 81 43. "Pollutants" means any solid, liquid, gaseous a. Tokens, tickets, revenue and other stamps or thermal irritant or contaminant, including (whether represented by actual stamps or smoke, vapor, soot, fumes, acids, alkalis, unused value in a meter) in current use; chemicals and waste. Waste includes and materials to be recycled, reconditioned or b. Evidences of debt issued in connection reclaimed. with credit or charge cards, which cards 44. "Programs and applications' means operating are not issued by you; programs and applications that you purchase but does not include "money", and that are: 49• "Software" means; a. Stored on "media"; or b. Pre -installed and stored in "hardware". a. "Media"; b. "Electronic Data"; Applications include, but are not limited to, programs for word processing, spreadsheet c. "Programs and applications"; and calculations, and graphic design. d. "Proprietary programs". 45. "Proprietary programs" means proprietary 50. "Specified Causes of Loss" means the operating programs and applications that you following: developed or that you had developed "operations" Fire; lightning; explosion, windstorm or hail; specifically for use in your and smoke; aircraft or vehicles; riot or civil that are: commotion; vandalism; leakage from fire a. Stored on "media"; or extinguishing equipment; sinkhole collapse; b. Installed and stored in "hardware". volcanic action; falling objects; weight of snow, 46. "Protection and control equipment" means: ice or sleet; water damage. a. Air conditioning or other cooling a. Sinkhole collapse means the sudden sinking or collapse of land into equipment used exclusively in the "hardware"; underground empty spaces created by the operation of the action of water on limestone or dolomite. b. Fire protection equipment used for the This cause of loss does not include: protection of the "hardware", including (1) The cost of filling sinkholes; or automatic and manual fire suppression equipment and smoke and heat detectors; orhops 2 Sinking or collapse of land into man - () and made underground cavities. c. Uninterruptible power supply system, line b. Falling objects does not include loss of or conditioner, and voltage regulator. damage to: 47. "Rental Value" means Business Income that (1) Personal property in the open; or consists of: (2) The interior of a building or structure, a. New Income (Net Profit or Loss before or property inside a building or income taxes) that would have been structure, unless the roof or an outside earned or incurred as rental income from wall of the building or structure is first tenant occupancy of the premises damaged by a falling object. described in the Declarations as furnished c. Water damage means and equipped by you, including fair rental (1) Accidental discharge or leakage of value of any portion of the described water or steam as the direct result of premises which is occupied by you; and the breaking apart or cracking of any b. Continuing normal operating expenses part of a system or appliance (other incurred in connection with that premises, than a sump system including its including: related equipment and parts) (1) Payroll; and containing water or steam; and (2) The amount of charges which are the (2) Accidental discharge or leakage of legal obligation of the tenant(s) but water or waterborne material as the would otherwise be your obligations. direct result of the breaking apart or 48. "Securities" means negotiable and non- cracking of a water or sewer pipe that is located off the described premises negotiable instruments or contracts "other and is part of a municipal potable representing either "money" or property" water supply system or municipal and includes: 391.1003 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 58 of 81 sanitary sewer system, if the breakage or cracking is caused by wear or tear. But water damage does not include loss or damage otherwise excluded in SECTION I — PROPERTY, B. Exclusions, paragraph 1. g. Water.. Therefore, for example, there is no coverage in the situation in which discharge or leakage of water results from breaking apart of cracking of a pipe which was caused by or related to weather - induced "flood" water, even if wear and tear contributed to the breakage or cracking. As another example, and also in accordance with the terms of the Water Exclusion, there is no coverage for loss or damage caused by or related to weather - induced "flood" water which follows or is exacerbated by pipe breakage or cracking attributable to wear and tear. To the extent that accidental discharge or leakage of water falls within the criteria set forth in paragraphs (1) or (2) above of this definition of "specified causes of loss", such water is not subject to the provisions of SECTION I — PROPERTY, B. Exclusions, paragraph 1., g. Water, which preclude coverage for surface water or water under the ground surface. 51. "Stock" means merchandise held in storage or for sale, raw materials and in process or finished goods, including supplies used in their packing or shipping. 52. "Suspension" means: a. The partial slowdown or complete cessation of your business activities; or b. Part or all of the described premises is rendered untenantable, if coverage for Business Income applies. 53. "Telephonic services" means use of your: a. Telephone services; b. Telephone credit cards; or c. Telephone access cards. 54. "Theft" means the unlawful taking of property to the deprivation of the Insured. 55."Transfer account" means an account maintained by you at a financial institution from which you can initiate the transfer, payment or delivery of "money" and "securities" by means of: a. Electronic, telegraphic, cable, teletype, telefacsimile or telephone instructions communicated directly through an electronic funds transfer system; or b. Written instructions (other than those described in SECTION I — PROPERTY, A. Coverage, 5. Additional Coverages, k. Forgery or Alteration) establishing the conditions under which such transfers are to be initiated by such financial institution through an electronic funds transfer system. 56. "Valuable papers and records" means: a. Inscribed, printed or written: (1) Documents; (2) Manuscripts; and (3) Records; including abstracts, books, deeds, drawings, films, maps or mortgages; b. If you are a Printer, Publisher or Graphic Artist by trade, "valuable papers and records" means negatives, positives, artwork, separations, plates, dies, molds, forms, stock manuscripts and other similar property usual to the graphic arts, printing or publishing industry, including those which exist on electronic or magnetic "media", other than prepackaged software programs. But "valuable papers and records" does not mean "money" or "securities". SECTION II — LIABILITY A. Coverages 1. Business Liability a. We will pay those sums the insured becomes legally obligated to pay as damages because of "bodily injury", "property damage" or "personal and advertising injury" to which this insurance applies. We will have the right and duty to defend the insured against any "suit" seeking those damages. However, we will have no duty to defend the insured against any "suit" seeking damages for "bodily injury", "property damage" or "personal and advertising injury", to which this insurance does not apply. We may, at our discretion, investigate any "occurrence" or any offense and settle any claim or "suit" that may result. But: (1) The amount we will pay for damages is limited as described in SECTION II — LIABILITY, D — Liability and Medical Expenses Limits of Insurance;and (2) Our right and duty to defend end when we have used up the applicable Limit of Insurance in the payment of 391-1003 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 59 of 81 judgments, settlements or medical Insured, Paragraph 1. or any "employee" expenses. authorized by you to give or receive notice No other obligation or liability to pay sums of an "occurrence" or claim: or perform acts or services is covered (1) Reports all or any part of the "bodily unless explicitly provided for under f. injury" or "property damage" to us or Coverage Extension — Supplementary any other insurer; Payments. (2) Receives a written or verbal demand b. This insurance applies: or claim for damages because of the (1) To "bodily injury" and "property "bodily injury" or "property damage"; damage" only if: or (a) The "bodily injury" or "property (3) Becomes aware by any other means damage" is caused by an that "bodily injury" or "property "occurrence" that takes place in damage" has occurred or has begun the "coverage territory"; to occur. (b) The "bodily injury" or "property e. Damages because of "bodily injury" damage" occurs during the policy include damages claimed by any person period; and or organization for care, loss of services or (c) Prior to the policy period, no death resulting at any time from the "bodily injury". insured listed under C. Who Is An Insured, paragraph 1. and no f. Coverage Extension — Supplementary "employee" authorized by you to Payments give or receive notice of an (1) We will pay, with respect to any claim "occurrence" or claim knew that we investigate or settle, or any "suit" the "bodily injury" or "property against an insured we defend: damage" had occurred, in whole (a) All expenses we incur. or in part. If such a listed insured or authorized "employee" knew, (b) Up to $2500 for cost of bail bonds prior to the policy period, that the required because of accidents or "bodily injury" or "property traffic law violations arising out of damage" occurred, then any the use of any vehicle to which continuation, change or Business Liability Coverage for resumption of such "bodily injury" "bodily injury" applies. We do not or "property damage" during or have to furnish these bonds. after the policy period will be (c) The cost of bonds to release deemed to have been known prior attachments, but only for bond to the policy period. amounts within our Limit of (2) To "personal and advertising injury" Insurance. We do not have to caused by an offense arising out of furnish these bonds. your business, but only if the offense (d) All reasonable expenses incurred was committed in the "coverage by the insured at our request to territory" during the policy period. assist us in the investigation or c. "Bodily injury" or "property damage" which defense of the claim or "suit", occurs during the policy period and was including actual loss of earnings not, prior to the policy period, known to up to $500 a day because of time have occurred by any insured listed under off from work. C. Who Is An Insured, paragraph 1. or (e) All court costs taxed against the any "employee" authorized by you to give insured in the "suit". However, or receive notice of an "occurrence" or these payments do not include claim, includes any continuation, change attorneys' fees or attorneys' or resumption of "bodily injury" or expenses taxed against the "property damage" after the end of the insured. policy period. (f) Prejudgment interest awarded d. "Bodily injury' or "property damage" will be against the insured on that part of deemed to have been known to have the judgment we pay. If we make occurred at the earliest time when any an offer to pay the Limit of insured listed under C. Who Is An Insurance, we will not pay any 391-1003 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 60 of 81 prejudgment interest based on legal papers received in that period of time after the offer. connection with the "suit" (g) All interest on the full amount of 3) Notify any other insurer any judgment that accrues after whose coverage is entry of the judgment and before available to the we have paid, offered to pay, or indemnitee; and deposited in court the part of the 4) Cooperate with us with judgment that is within our Limit of respect to coordinating Insurance. other applicable insurance These payments will not reduce the available to the Limit of Insurance described in indemnitee; and SECTION II — LIABILITY, D. (ii) Provides us with written Liability and Medical Expenses authorization to: Limits of Insurance. (2) If we defend an insured against a 1) Obtain records and otherinformation "suit" and an indemnitee of the related to the insured is also named as a party to "suit"; and the "suit", we will defend that 2 ) Conduct and control the indemnitee if all of the following defense of the indemnitee conditions are met: in such "suit". (a) The "suit" against the indemnitee So long as the above conditions seeks damages for which the are met, attorneys' fees incurred insured has assumed the liability by us in the defense of that of the indemnitee in a contract or indemnitee, necessary litigation agreement that is an "insured expenses incurred by us and contract"; necessary litigation expenses (b) This insurance applies to such incurred by the indemnitee at our liability assumed by the insured; request will be paid as Supplementary Payments. (c) The obligation to defend, or the Notwithstanding the provisions of cost of the defense of, that SECTION II — LIABILITY, B. indemnitee, has also been Exclusions, 1. Applicable to assumed by the insured in the Business Liability Coverage, b. same "insured contract"; Contractual Liability, paragraph (d) The allegations in the "suit" and (2), such payments will not be the information we know about the deemed to be damages for "bodily "occurrence" are such that no injury" and "property damage" and conflict appears to exist between will not reduce the limits of the interests of the insured and insurance. the interests of the indemnitee; Our obligation to defend an insured's (a) The indemnitee and the insured indemnitee and to pay for attorneys' ask us to conduct and control the fees and necessary litigation defense of that indemnitee against expenses as Supplementary such "suit" and agree that we can Payments ends when: assign the same counsel to (g) We have used up the applicable defend the insured and the Limit of Insurance in the payment indemnitee; and of judgments or settlements; or (f) The indemnitee: (h) The conditions set forth above, or (1) Agrees in writing to: the terms of the agreement described in Paragraph (2)(f) 1) Cooperate with us in the above are no longer met. investigation, settlement or defense of the "suit"; 2• Medical Expenses 2) Immediately send us a. We will pay medical expenses as copies of any demands, described below for "bodily injury" caused notices, summonses or by an accident: (1) On premises you own or rent; 391-1003 08 16 Includes copyrighted material of Insurance Services Office, Inc., with Its permission. Page 61 of 81 (2) On ways next to premises you own or rent; or (3) Because of your operations; provided that: (a) The accident takes place in the "coverage territory" and during the policy period; (b) The expenses are incurred and reported to us within one year of the date of the accident; and (c) The injured person submits to examination, at our expense, by physicians of our choice as often as we reasonably require. b. We will make these payments regardless of fault. These payments will not exceed the applicable Limits of Insurance as described in D. Liability and Medical Expenses Limits of Insurance. c. We will pay reasonable expenses for: (1) First aid administered at the time of an accident; (2) Necessary medical, surgical, x-ray and dental services, including prosthetic devices; and (3) Necessary ambulance, hospital, professional nursing and funeral services. B. Exclusions 1. Applicable To Business Liability Coverage This insurance does not apply to: a. Expected or Intended Injury "Bodily injury" or "property damage" expected or intended from the standpoint of the insured. This exclusion does not apply to "bodily injury" resulting from the use of reasonable force to protect persons or property. b. Contractual Liability "Bodily injury" or "property damage" for which the insured is obligated to pay damages by reason of the assumption of liability in a contract or agreement. This exclusion does not apply to liability for damages: (1) That the insured would have in the absence of the contract or agreement; or (2) Assumed in a contract or agreement that is an "insured contract", provided the "bodily injury" or "property damage" occurs subsequent to the execution of the contract or agreement. Solely for the purposes of liability assumed in an "insured contract", reasonable attorney fees and necessary litigation expenses incurred by or for a party other than an insured are deemed to be damages because of "bodily injury" or "property damage", provided: (a) Liability to such party for, or for the cost of, that party's defense has also been assumed in the same "insured contract"; and (b) Such attorney fees and litigation expenses are for defense of that party against a civil or alternative dispute resolution proceeding in which damages to which this insurance applies are alleged. c. Liquor Liability "Bodily injury" or which any insured reason of: "property damage" for may be held liable by (1) Causing or contributing to the intoxication of any person; (2) The furnishing of alcoholic beverages to a person under the legal drinking age or under the influence of alcohol; or (3) Any statute, ordinance or regulation relating to the sale, gift, distribution or use of alcoholic beverages. This exclusion applies even if the claims against any insured allege negligence or other wrongdoing in: (4) The supervision, hiring, employment, training or monitoring of others by that insured; or (5) Providing or failing to provide transportation with respect to any person that may be under the influence of alcohol; if the "occurrence" which caused the "bodily injury" or "property damage", involved that which is described in paragraphs (1), (2) or (3) above. However, this exclusion applies only if you are in the business of manufacturing, distributing, selling, serving or furnishing alcoholic beverages. For the purpose of this exclusion, permitting a person to bring alcoholic beverages on your premises for consumption on your premises, whether or 391-1003 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 62 of 81 not a fee is charged or a license is building's occupants or their required for such activity, is not by itself guests; considered the business of selling, serving OBodil II ' injury" or furnishing alcoholic beverages. damage" for which you may d. Workers' Compensation and Similar be held liable, if you are a Laws contractor and the owner or Any obligation of the insured under a lessee of such premises, site workers' compensation, disability benefits or location has been added to or unemployment compensation law or your policy as an additional any similar local, state, federal or foreign insured with respect to your law or regulation. ongoing operations performed for that additional insured at e. Employer's Liability that premises, site or location "Bodily Injury" to: and such premises, site or (1) An "employee" of the insured arising location is not and never was out of and in the course of: owned or occupied by, or rented or loaned to, any (a) Employment by the insured; or insured, other than that (b) Performing duties related to the additional insured; or conduct of the insured's business; (iii) "Bodily injury" or "property or damage" arising out of heat, (2) The spouse, child, parent, brother or smoke or fumes from a sister of that "employee" as a "hostile fire"; consequence of paragraph (1) above. (b) At or from any premises, site or This exclusion applies: location which is or was at any (3) Whether the insured may be liable as time used by or for any insured or an employer or in any other capacity; others for the handling, storage, and disposal, processing or treatment of waste; (4) To any obligation to share damages with or repay someone else who must (c) Which are or were at any time pay damages because of the injury. transported, handled, stored, treated, disposed of, or processed This exclusion does not apply to liability as waste by or for: assumed by the insured under an "insured contract". (1) Any insured; or f. Pollution (ii) Any person or organization for whom you may be legally (1) "Bodily injury" or "property damage" responsible; or arising out of the actual, alleged or threatened discharge, dispersal, (d) At or from any premises, site or seepage, migration, release or escape location on which any insured or "pollutants": any contractors or subcontractors working directly or indirectly on (a (a) At or from any premises, site or any insured's behalf are location, which is or was at any performing operations if the time owned or occupied by, or "pollutants" are brought on or to rented or loaned to, any insured. the premises, site or location in However, this subparagraph does connection with such operations not apply to: by such insured, contractor or (i) "Bodily injury" if sustained subcontractor. However, this within a building and caused subparagraph does not apply to: by smoke, fumes, vapor or (i) "Bodily injury" or "property soot produced by or damage" arising out of the originating from equipment escape of fuels, lubricants or that is used to heat, cool or other operating fluids which dehumidify the building, or are needed to perform the equipment that is used to heat normal electrical, hydraulic or water for personal use, by the mechanical functions 391.1003 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 63 of 81 necessary for the operation of "mobile equipment" or its parts, if such fuels, lubricants or other operating fluids escape from a vehicle part designed to hold, store or receive them. This exception does not apply if the "bodily injury" or "property damage" arises out of the intentional discharge, dispersal or release of the fuels, lubricants or other operating fluids, or if such fuels, lubricants or other operating fluids are brought on or to the premises, site or location with the intent that they be discharged, dispersed or released as part of the operations being performed by such insured, contractor or subcontractor; (ii) "Bodily injury" or "property damage" sustained within a building and caused by the release of gases, fumes or vapors from materials brought into that building in connection with operations being performed by you or on your behalf by a contractor or subcontractor; or (iii) "Bodily injury" or "property damage" arising out of heat, smoke or fumes from a "hostile fire". (a) At or from any premises, site or location on which any insured or any contractors or subcontractors working directly or indirectly on any insured's behalf are performing operations if the operations are to test for, monitor, clean up, remove, contain, treat, detoxify or neutralize, or in any way respond to, or assess the effects of, "pollutants". (2) Any loss, cost or expense arising out of any: (a) Request, demand, order or statutory or regulatory requirement that any insured or others test for, monitor, clean up, remove, contain, treat, detoxify or neutralize, or in any way respond to, or assess the effects of, "pollutants"; or (b) Claim or "suit" by or on behalf of a governmental authority for damages because of testing for, monitoring, cleaning up, removing, containing, treating, detoxifying or neutralizing, or in any way responding to, or assessing the effects of, "pollutants". However, this paragraph does not apply to liability for damages because of "property damage" that the insured would have in the absence of such request, demand, order or statutory or regulatory requirement or such claim or "suit" by or on behalf of a governmental authority. g. Aircraft, Auto or Watercraft (1) Unmanned Aircraft "Bodily injury", "property damage" or "personal and advertising injury" arising out of the ownership, maintenance, use or entrustment to others of any aircraft that is an "unmanned aircraft". Use includes operation and "loading and unloading". This paragraph g. (1) applies even if the claims against any insured allege negligence or other wrongdoing in the supervision, hiring, employment, training or monitoring of others by that insured, if the "occurrence" which caused the "bodily injury" or "property damage" or the offense which caused the "personal and advertising injury" involved the ownership, maintenance, use or entrustment to others of any aircraft that is an "unmanned aircraft". This paragraph g. (1) does not apply to: (a) The use of another's advertising idea in your "advertisement"; or (b) Infringing upon another's copyright, trade dress or slogan in your "advertisement". (2) Aircraft (Other Than Unmanned Aircraft), Auto or Watercraft "Bodily injury" or "property damage" arising out of the ownership, maintenance, use or entrustment to others of any aircraft (other than "unmanned aircraft"), "auto" or watercraft owned or operated by or rented or loaned to any insured. Use includes operation and "loading or unloading". 391.10D3 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 64 of 81 This paragraph g. (2) applies even if chassis and used to raise the claims against any insured allege or lower workers; and negligence or other wrongdoing in the 2) Air compressors, pumps supervision, hiring, employment, and generators, including training or monitoring of others by that "occurrence" spraying, welding, insured, if the which building cleaning, caused the "bodily injury" or "property geophysical exploration, damage" or the offense which caused "personal lighting and well -servicing the and advertising injury" equipment; or involved the ownership, maintenance, use or entrustment to others of any (f) An aircraft (other than "unmanned aircraft (other than "unmanned aircraft") that is: aircraft"), "auto" or watercraft that is (1) Chartered by, loaned to, or owned or operated by or rented or hired by you with a paid crew; loaned to any insured. and This paragraph g. (2) does not apply (ii) Not owned by any insured. to: h. Mobile Equipment (a) A watercraft while ashore on "Bodily injury" or "property damage" premises you own or rent; arising out of: (b) A watercraft you do not own that (1) The transportation of "mobile is: equipment" by an "auto" owned or (1) Less than 51 feet long; and operated by or rented or loaned to any (ii) Not being used to carry insured; or persons or property for a (2) The use of "mobile equipment" in, or charge; while in practice for, or while being (c) Parking an "auto" on, or on the prepared for, any prearranged racing, ways next to, premises you own speed, demolition orstunting activity. or rent, provided the "auto" is not i. War owned by or rented or loaned to "Bodily injury", "property damage" or you or the insured; "personal and advertising injury", however (d) Liability assumed under any caused, arising, directly or indirectly, out "insured contract" for the of: ownership, maintenance or use of "unmanned (1) War, including undeclared or civil war; aircraft (other than - aircraft") or watercraft; or (2) Warlike action by a military force, (e) "Bodily injury" or "property including action in hindering or defending against an actual or damage" arising out of: expected attack, by any government, (i) The operation of machinery or sovereign or other authority using equipment that is attached to, military personnel or other agents; or or part of, a land vehicle that (3) Insurrection, rebellion, revolution, would qualify under the "mobile usurped power, or action taken by definition of government authority in hindering or equipment" if it were not defending against any of these. subject to a compulsory or financial responsibility law or j• Professional Services other motor vehicle insurance "Bodily injury", "property damage" or motor vehicle registration "personal and advertising injury" caused law where it is licensed or by the rendering of or failure to render any principally garaged; or professional service, advice or instruction: (ii) The operation of any of the (1) By you; or following machinery or (2) On your behalf; or equipment: 1) Cherry pickers and similar (3) From whom any of you assumed devices mounted on liability by reason of a contract or automobile or truck agreement, 391.1003 08 16 Includes copyrighted material of Insurance services Office, Ina, with its permission. Page 65 of 81 regardless of whether any such service, advice or instruction is ordinary to any insured's profession. Professional services include but are not limited to: (4) Legal, accounting or advertising services, notary, title abstract, tax preparation, real estate, stockbroker, publishing, architects or insurance services; (5) Preparing, approving, or failing to prepare or approve maps, drawings, opinions, reports, surveys, change orders, designs or specifications; (6) Supervisory, inspection or engineering services; (7) Medical, surgical, dental, x-ray or nursing services treatment, advice or instruction; (8) Any health or therapeutic service treatment, advice or instruction; (9) Any service, treatment, advice or instruction for the purpose of appearance or skin enhancement, hair removal or replacement or personal grooming, including use or exposure to any sun lamp, tanning booth or other similar appliance; (10)Optometry or optical or hearing aid services including the prescribing, preparation, fitting, demonstration or distribution of ophthalmic lenses and similar products or hearing aid devices; (11)Body piercing services; (12)Services in the practice of pharmacy; (13)Management, Human Resource, Testing, Media or Public Relations consulting services. This exclusion applies even if a claim alleges negligence or other wrongdoing in the supervision, hiring, employment, training or monitoring of others by an insured, if the "occurrence" which caused the "bodily injury" or "property damage", or the offense which caused the "personal and advertising injury", involved the rendering of or failure to render any professional service. k. Damage to Property "Property damage" to: organization or entity, for repair, replacement, enhancement, restoration or maintenance of such property for any reason, including prevention of injury to a person or damage to another's property; (2) Premises you sell, give away or abandon, if the "property damage" arises out of any part of those premises; (3) Property loaned to you; (4) Personal property in the care, custody or control of the insured; (5) That particular part of real property on which you or any contractor or subcontractor working directly or indirectly on your behalf is performing operations, if the "property damage" arises out of those operations; or (6) That particular part of any property that must be restored, repaired or replaced because "your work" was incorrectly performed on it. Paragraphs (1), (3) and (4) of this exclusion do not apply to "property damage" (other than damage by fire) to premises, including the contents of such premises, rented to you for a period of 7 or fewer consecutive days. A separate Limit of Insurance applies to Damage to Premises Rented to You as described in SECTION II — LIABILITY, D. Liability and Medical Expenses Limit Of Insurance. Paragraph (2) of this exclusion does not apply if the premises are "your work" and were never occupied, rented or held for rental by you. Paragraphs (3), (4), (5) and (6) of this exclusion do not apply to liability assumed under a sidetrack agreement. Paragraph (6) of this exclusion does not apply to "property damage" included in the "products — completed operations hazard". I. Damage to Your Product "Property damage" to "your product" arising out of it or any part of it. m. Damage to Your Work "Property damage" to "your work" arising out of it or any part of it and included in the "products — completed operations hazard". (1) Property you own, rent or occupy, This exclusion does not apply if the including any costs or expenses damaged work or the work out of which incurred by you, or any other person, 391.1003 08 16 Includes copyrighted material of Insurance services Office, Inc., with its permission. Page 66 of 81 the damage arises was performed on your behalf by a subcontractor. n. Damage to Impaired Property or Property Not Physically Injured "Property damage" to "impaired property" or property that has not been physically injured, arising out of: (1) A defect, deficiency, inadequacy or dangerous condition in "your product' or "your work"; or (2) A delay or failure by you or anyone acting on your behalf to perform a contract or agreement in accordance with its terms. This exclusion does not apply to the loss of use of other property arising out of sudden and accidental physical injury to "your product" or "your work" after it has been put to its intended use. o. Recall of Products, Work or Impaired Property Damages claimed for any loss, cost or expense incurred by you or others for the loss of use, withdrawal, recall, inspection, repair, replacement, adjustment, removal or disposal of: (1) "Your product; (2) "Your work'; or (3) "Impaired property"; if such product, work or property is withdrawn or recalled from the market or from use by any person or organization because of a known or suspected defect, deficiency, inadequacy or dangerous condition in it. p. Aircraft Products, Grounding and Testing (1) "Aircraft products" or reliance upon any representation or warranty made with such product; (2) The "grounding" of any aircraft; or (3) The "testing" of any aircraft. For purposes of this Exclusion, the following definitions apply: (4) "Aircraft Products" means: (a) Aircraft, including but not limited to missiles, spacecraft, or any other aircraft goods or products you manufacture, sell, handle or distribute; (b) Aircraft and any ground support or control equipment used in connection therewith; (c) Any product provided by the insured and installed or used in connection with any aircraft; (d) Any tooling used in respect to any aircraft; (a) Training and navigational aids, instructions, manuals, blueprints, engineering or other data in connection with any aircraft; (f) Any advice, service or labor supplied with any aircraft; or (g) Services you or others trading under your name provide or recommend for use in the manufacture, repair, operation, maintenance or use of any aircraft. (5) "Grounding" means the withdrawal of one or more aircraft from flight operations or the imposition of speed, passenger or load restrictions on such aircraft, due to the existence of or alleged or suspected existence of any defect, fault or condition: (a) In such aircraft or any part sold, handled or distributed by you or that is manufactured, assembled or processed by any other person or organization according to your specifications, plans, suggestions, orders or drawings; or (b) With tools, machinery or other equipment furnished to such persons or organizations by you; whether such withdrawn aircraft are owned or operated by the same or different persons or organizations. "Grounding" shall be deemed to commence on the date of an "occurrence" which discloses the necessity of "grounding" or on the date an aircraft is first withdrawn from service because of such condition, whichever comes first. (6) "Testing" means examination, observation, evaluation or measuring of the performance of "aircraft products", while either in the air or on the ground. q. Distribution of Material in Violation of Statutes 391-1003 08 16 Includes copyrighted material of Insurance services Office, Inc., with its permission. Page 67 of 81 "Bodily injury", "property damage' or "personal and advertising injury" arising directly or indirectly out of any action or omission that violates or is alleged to violate: (1) The Telephone Consumer Protection Act (TCPA), including any amendment of or addition to such law; or (2) The CAN-SPAM Act of 2003, including any amendment of or addition to such law; or (3) The Fair Credit Reporting Act (FCRA), and any amendment of or addition to such law, including the Fair and Accurate Credit Transaction Act (FACTA); or (4) Any other laws, statutes ordinances or regulations, that address, prohibit, or limit the printing, dissemination, disposal, collecting, recording, sending, transmitting, communicating or distribution of material or information. r. Access Or Disclosure Of Confidential Or Personal Information And Data - related Liability Damages arising out of (1) Any access to or disclosure of any person's or organization's confidential or personal information, including patents, trade secrets, processing methods, customer lists, financial information, credit card information, health information or any other type of nonpublic information; or (2) The loss of, loss of use of, damage to, corruption of, inability to access, or inability to manipulate electronic data. This exclusion applies even if damages are claimed for notification costs, credit monitoring expenses, forensic expenses, public relations expenses or any other loss, cost or expense incurred by you or others arising out of that which is described in paragraphs (1) or (2) above. However, unless paragraph (1) above applies, this exclusion does not apply to damages because of "bodily injury". As used in this exclusion, electronic data means information, facts or computer programs stored as or on, created or used on, or transmitted to or from computer software including systems and applications software), on hard or floppy disks, CD-ROMs, tapes, drives, cells, data processing devices or any other repositories of computer software which are used with electronically controlled equipment. The term computer programs, referred to in the foregoing description of electronic data, means a set of related electronic instructions which direct the operations and functions of a computer or device connected to it, which enable the computer or device to receive, process, store, retrieve or send data. Exclusions c., d., a., g., h., and k., I., m., n. and o. above do not apply to damage to premises while rented to you or temporarily occupied by you with permission of the owner. A separate Damage to Premises Rented to You Limit of Insurance applies to this coverage as described in SECTION II — LIABILITY, D. Liability and Medical Expenses Limits of Insurance. 2. Additional Exclusions Applicable Only to "Personal and Advertising Injury" This insurance does not apply to: a. Knowing Violation of Rights of Another "Personal and advertising injury" caused by or at the direction of the insured with the knowledge that the act would violate the rights of another and would inflict "personal and advertising injury". b. Material Published With Knowledge of Falsity "Personal and advertising injury" arising out of oral or written publication, in any manner, of material, if done by or at the direction of the insured with knowledge of its falsity. c. Material Published Prior to Policy Period "Personal and advertising injury" arising out of oral or written publication, in any manner, of material whose first publication took place before the beginning of the policy period. d. Criminal Acts "Personal and advertising injury" arising out of a criminal act committed by or at the direction of the insured. e. Contractual Liability "Personal and advertising injury" for which the insured has assumed liability in a contract or agreement. This exclusion does not apply to liability for damages that the insured would have in the absence of the contract or agreement. 391.1003 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission, Page 68 of 81 f. Breach of Contract "Personal and advertising injury" arising out of a breach of contract, except an implied contract to use another's advertising idea in your "advertisement". g. Quality or Performance of Goods — Failure to Conform to Statements "Personal and advertising injury" arising out of the failure of goods, products or services to conform with any statement of quality or performance made in your "advertisement". h. Wrong Description of Prices "Personal and advertising injury" arising out of the wrong description of the price of goods, products or services stated in your "advertisement". i. Insureds in Media and Internet Type Businesses "Personal and advertising injury" committed by an insured whose business is: (1) Advertising, broadcasting, publishing or telecasting; (2) Designing or determining content of web -sites for others; or (3) An Internet search, access, content or service provider. However, this exclusion does not apply to F. Liability and Medical Expenses Definitions, 15. "Personal and Advertising Injury", paragraphs a., b. and c. For the purposes of this exclusion, the placing of frames, borders or links, or advertising, for you or others anywhere on the Internet, is not by itself considered the business of advertising, broadcasting, publishing or telecasting. j. Pollution "Personal and advertising injury" arising out of the actual, alleged or threatened discharge, dispersal, seepage, migration, release or escape of "pollutants" at any time. It. Pollution -Related Any loss, cost or expense arising out of any: (1) Request, demand, order or statutory or regulatory requirement that any insured or others test for, monitor, clean-up, remove, contain, treat, detoxify or neutralize, or in any way respond to, or assess the effects of, "pollutants"; or (2) Claim or "suit" by or on behalf of a governmental authority for damages because of testing for, monitoring, cleaning up, removing, containing, treating, detoxifying or neutralizing, or in any way responding to, or assessing the effects of, "pollutants". I. Electronic Chatrooms or Bulletin Boards "Personal and advertising injury" arising out of an electronic chatroom or bulletin board the insured hosts, owns or over which the insured exercises control. m. Infringement of Copyright, Patent, Trademark or Trade Secret "Personal and advertising injury" arising out of the infringement of copyright, patent, trademark, trade secret or other intellectual property rights. Under this exclusion, such other intellectual property rights do not include the use of another's advertising idea in your "advertisement". However, this exclusion does not apply to infringement, in your "advertisement", of copyright, trade dress or slogan. n. Unauthorized Use of Another's Name of Product "Personal and advertising injury" arising out of the unauthorized use of another's name or product in your e-mail address, domain name or metatags, or any other similar tactics to mislead another's potential customers. 3. Additional Exclusions Applicable to Medical Expenses Coverage Only We will not pay expenses for "bodily injury": a. Any Insured To any insured, except "volunteer workers". b. Hired Person To a person hired to do work for or on behalf of any insured or a tenant of any insured. c. Injury on Normally Occupied Premises To a person injured on that part of premises you own or rent that the person normally occupies. d. Workers' Compensation and Similar Laws To a person, whether or not an "employee" of any insured, if benefits for 391-1003 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 69 of 81 the "bodily injury" are payable or must be provided under a workers' compensation or disability benefits law or a similar law. e. Athletic Activities To a person injured while practicing, instructing or participating in any physical exercises or games, sports or athletic contests. f. Products -Completed Operations Hazard Included within the "products — completed operations hazard". g. Otherwise Excluded Otherwise Excluded under SECTION II - LIABILITY, B. Exclusions, 1. Applicable To Business Liability Coverage. 4. Additional Exclusions Applicable To Both Business Liability Coverage and Medical Expenses Coverage: Nuclear Energy Liability Exclusion This insurance does not apply: (1) Under Business Liability Coverage, to "bodily injury" or "property damage": (a) With respect to which an insured under the policy is also an insured under a nuclear energy liability policy issued by the Nuclear Energy Liability Insurance Association, Mutual Atomic Energy Liability Underwriters or Nuclear Insurance Association of Canada, or would be an insured under any such policy but for its termination upon exhaustion of its limit of liability; or (b) Resulting from the "hazardous properties" of "nuclear material" and with respect to which: (i) Any person or organization is required to maintain financial protection pursuant to the Atomic Energy Act of 1954, or any law amendatory thereof; or (it) The insured is, or had this policy not been issued would be, entitled to indemnity from the United States of America, or any agency thereof, under any agreement entered into by the United States of America, or any agency thereof, with any person or organization. (2) Under Medical Expenses Coverage, to expenses incurred with respect to "bodily injury" resulting from the "hazardous properties" of "nuclear material" and arising out of the operation of a "nuclear facility" by any person or organization. (3) Under Business Liability Coverage, to "bodily injury" or "property damage" resulting from the "hazardous properties" of the "nuclear material"; if: (a) The "nuclear material": (t) Is at any "nuclear facility" owned by, or operated by or on behalf of, an insured; or (tt) Has been discharged or dispersed therefrom; (b) The "nuclear material" is contained in "spent fuel" or "waste" at any time possessed, handled, used, processed, stored, transported or disposed of by or on behalf of an insured; or (c) The "bodily injury" or "property damage" arises out of the furnishing by an insured of services, materials, parts or equipment in connection with the planning, construction, maintenance, operation or use of any "nuclear facility"; but if such facility is located within the United States of America, its territories or possessions or Canada, this Exclusion (3) applies only to "property damage" to such "nuclear facility" and any property thereat. (4) As used in this exclusion: (a) "By-product material" has the meaning given it in the Atomic Energy Act of 1954 or in any law amendatory thereof; (b) "Hazardous properties" include radioactive, toxic or explosive properties; (c) "Nuclear facility" means: (t) Any "nuclear reactor"; (ii) Any equipment or device designed or used for: 1) Separating the isotopes of uranium or plutonium; 2) Processing or utilizing "spent fuel"; or 3) Handling, processing or packaging "waste"; (iii) Any equipment or device used for the processing, fabricating or alloying of "special nuclear material" if at any time the total amount of such material in the 391-1003 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 70 of 81 custody of the insured at the premises where such equipment or device is located consists of or contains more than 25 grams of plutonium or uranium 233 or any combination thereof, or more than 250 grams of uranium 235; (iv) Any structure, basin, excavation, premises or place prepared or used for the storage or disposal of "waste" and includes the site on which any of the foregoing is located, all operations conducted on such site and all premises used for such operations; (d) "Nuclear material" means "source material", "special nuclear material" or "by-product material"; (e) "Nuclear reactor" means any apparatus designed or used to sustain nuclear fission in a self-supporting chain reaction or to contain a critical mass of fissionable material; (f) "Property damage" includes all forms of radioactive contamination of property. (g) "Source material" has the meaning given it in the Atomic Energy Act of 1954 or in any law amendatory thereof; (h) "Special nuclear material" has the meaning given it in the Atomic Energy Act of 1954 or in any law amendatory thereof; (i) "Spent fuel" means any fuel element or fuel component, solid or liquid, which has been used or exposed to radiation in a "nuclear reactor", (j) "Waste" means any waste material: (i) Containing "by-product material" other than the tailings or wastes produced by the extraction or concentration of uranium or thorium from any ore processed primarily for its "source material" content; and (if) Resulting from the operation by any person or organization of any "nuclear facility" included under paragraphs (i) and (ii) of the definition of "nuclear facility". C. Who Is An Insured 1. If you are designated in the Declarations as: a. An individual, you and your spouse are insureds, but only with respect to the conduct of a business of which you are the sole owner. b. A partnership or joint venture, you are an insured. Your members, your partners and their spouses are also insureds, but only with respect to the conduct of your business. c. A limited liability company, you are an insured. Your members are also insureds, but only with respect to the conduct of your business. Your managers are insureds, but only with respect to their duties as your managers. d. An organization other than a partnership, joint venture or limited liability company, you are an insured. Your "executive officers" and directors are insureds, but only with respect to their duties as your officers or directors. Your stockholders are also insureds, but only with respect to their liability as stockholders. e. A trust, you are an insured. Your trustees are also insureds, but only with respect to their duties as trustees. 2. Each of the following is also an insured: a. Your "volunteer workers" only while performing duties related to the conduct of your business, or your "employees", other than either your "executive officers" (if you are an organization other than a partnership, joint venture or limited liability company) or your managers (if you are a limited liability company), but only for acts within the scope of their employment by you or while performing duties related to the conduct of your business. However, none of these "employees" or "volunteer workers" are insureds for: (1) "Bodily injury" or "personal and advertising injury": (a) To you, to your partners or members (if you are a partnership or joint venture), to your members (if you are a limited liability company), or to a co -"employee" while in the course of his or her employment or performing duties related to the conduct of your business, or to your other "volunteer workers" while performing duties related to the conduct of your business; (b) To the spouse, child, parent, brother or sister of that co- 391-1003 08 16 Includes copyrighted material of Insurance services Office, Inc., with its permission. Page 71 of 81 "employee" as a consequence of (2) "Personal and advertising injury" paragraph (1) (a) above; arising out of an offense committed (c) For which there is any obligation before you acquired or formed the to share damages with or repay organization. someone else who must pay No person or organization is an insured with damages because of the injury respect to the conduct of any current or past described in paragraphs (1)(a) or partnership, joint venture or limited liability (1)(b); or company that is not shown as a Named Insured in (d) Arising out of his or her providing the Declarations. or failing to provide professional D. Liability and Medical Expenses Limits of services. Insurance (2) "Property damage" to property: 1. The Limits of Insurance under SECTION II — (a) Owned, occupied or used by; or LIABILITY shown in the Declarations and the rules below fix the most we will pay regardless (b) Rented to, in the care, custody or of the number of: control of, or over which physical control is being exercised for any a. Insureds; purpose by; b. Claims made or "suits" brought; or you, any of your "employees", c. Persons or organizations making claims or "volunteer workers", any partner or bringing "suits". member (if you are a partnership or 2. Subject to the Aggregate Limit identified in joint venture), or any member (if you paragraph 5. below, the most we will pay for are a limited liability company). the sum of all damages because of all: b. Any person (other than your "employee" or a. "Bodily injury", "property damage" and "volunteer worker") or any organization medical expenses arising out of any one while acting as your real estate manager. "occurrence"; and c. Any person or organization having proper b. "Personal and advertising injury" temporary custody of your property if you sustained by any one person or die, but only: organization; (1) With respect to liability arising out of is the Liability And Medical Expenses Limit the maintenance or use of that shown in the Declarations. property; and 3. Subject to the Liability And Medical Expenses (2) Until your legal representative has Limit, the most we will pay for all medical been appointed. expenses because of "bodily injury" sustained d. Your legal representative if you die, but by any one person is the Medical Expenses only with respect to duties as such. That Limit shown in the Declarations. representative will have all your rights and 4. The Damage to Premises Rented to You Limit duties under this policy. shown in the Declarations is the most we will 3. Any organization you newly acquire or form, pay for damages because of "property acquire or form, other than a partnership, joint damage" to any one premises while rented to venture or limited liability company, and over you, or temporarily occupied by you with which you maintain ownership or majority permission of the owner. interest, will qualify as a Named Insured if 5. Aggregate Limits there is no other similar insurance available to that organization. However: a. The most we will pay for: a. Coverage under this provision is afforded (1) All "bodily injury" and "property only until the 901" day after you acquire or damage" that is included in the form the organization or the end of the "products -completed operations policy period, whichever is earlier; and hazard" is twice the Liability And b. Business Liability Coverage does not Medical Expenses Limit. apply to: (2) All: (1) "Bodily injury" or "property damage (a) "Bodily injury" and "property that occurred before you acquired or damage" except damages formed the organization; and because of "bodily injury" and "property damage" included in the 391-1003 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 72 of 81 "products -completed operations hazard"; (b) Plus medical expenses; (c) Plus all "personal and advertising injury" caused by offenses committed; is twice the Liability And Medical Expenses Limit. b. The Aggregate Limits of Insurance apply separately to each of your "locations" owned by or rented to you. "Location" means premises involving the same or connecting lots, or premises whose connection is interrupted only by a street, roadway, waterway or right-of-way of a railroad. 6. The Limits of Insurance of SECTION II — LIABILITY apply separately to each consecutive annual period and to any remaining period of less than 12 months, starting with the beginning of the policy period shown in the Declarations, unless the policy period is extended after issuance for an additional period of less than 12 months. In that case, the additional period will be deemed part of the last preceding period for purposes of determining the Limits of Insurance. E. Liability and Medical Expenses General Conditions 1. Bankruptcy Bankruptcy or insolvency of the insured or of the insured's estate will not relieve us of our obligations under this Coverage Part. 2. Duties in the Event of Occurrence, Offense, Claim or Suit a. You must see to it that we are notified as soon as practicable of an "occurrence" or an offense which may result in a claim. To the extent possible, notice should include: (1) How, when and where the "occurrence" or offense took place; (2) The names and addresses of any injured persons and witnesses; and (3) The nature and location of any injury or damage arising out of the "occurrence" or offense. b. If a claim is made or "suit" is brought against any insured, you must: (1) Immediately record the specifics of the claim or "suit" and the date received; and (2) Notify us as soon as practicable. You must see to it that we receive written notice of the claim or "suit" as soon as practicable. c. You and any other involved insured must: (1) Immediately send us copies of any demands, notices, summonses or legal papers received in connection with the claim or "suit'; (2) Authorize us to obtain records and other information; (3) Cooperate with us in the investigation, or settlement of the claim or defense against the "suit"; and (4) Assist us, upon our request, in the enforcement of any right against any person or organization that may be liable to the insured because of injury or damage to which this insurance may also apply. d. No insured will, except at that insured's own cost, voluntarily make a payment, assume any obligation, or incur any expense, other than for first aid, without our consent. 3. Legal Action Against Us No person or organization has a right under this Coverage Part: a. To join us as a party or otherwise bring us into a "suit" asking for damages from an insured; or b. To sue us on this policy unless all of its terms have been fully complied with. A person or organization may sue us to recover on an agreed settlement or on a final judgment against an insured; but we will not be liable for damages that are not payable under the terms of this policy or that are in excess of the applicable Limit of Insurance. An agreed settlement means a settlement and release of liability signed by us, the insured and the claimant or the claimant's legal representative. 4. Separation of Insureds Except with respect to the Limits of Insurance under SECTION II — LIABILITY, and any rights or duties specifically assigned in this Coverage Part to the first Named Insured, this insurance applies: a. As if each Named Insured were the only Named Insured; and b. Separately to each insured against whom claim is made or "suit" is brought. 391.1003 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 73 of 81 F. Liability and Medical Expenses Definitions provided the insured's responsibility to pay 1. "Advertisement" means a notice that is damages is determined in a "suit" on the broadcast or published to the general public or merits in the territory described in specific market segments about your goods, paragraph a. above or in a settlement we products or services for the purpose of agree to. attracting customers or supporters. For the 5. "Employee" includes a "leased worker". purposes of this definition: "Employee" does not include a "temporary a. Notices that are published include material worker" placed on the Internet or on similar 6. "Executive officer" means a person holding electronic means of communication; and any of the officer positions created by your b. Regarding websites, only that part of a charter, constitution, by-laws or any other website that is about your goods, products similar governing document. or services for the purposes of attracting 7. "Hostile fire" means one which becomes customers or supporters is considered an uncontrollable or breaks out from where it was advertisement. intended to be. 2. "Auto" means: B. "Impaired property" means tangible property, a. A land motor vehicle, trailer or semitrailer other than "your product" or "your work", that designed for travel on public roads, cannot be used or is less useful because: including any attached machinery or a. It incorporates "your product" or "your equipment; or work" that is known or thought to be b. Any other land vehicle that is subject to a defective, deficient, inadequate or compulsory or financial responsibility law dangerous; or or other motor vehicle insurance law in the b. You have failed to fulfill the terms of a state where it is licensed or principally contract or agreement; garaged, if such property can be restored to use by the However, "auto" does not include "mobile repair, replacement, adjustment or removal of equipment". "your product" or "your work", or your fulfilling 3. "Bodily injury" means bodily injury, sickness or the terms of the contract or agreement. disease sustained by a person, including 9. "Insured contract" means: death resulting from any of these at any time. "Bodily a. A contract for a lease of premises. injury" includes mental anguish or However, that portion of the contract for a other mental injury resulting from "bodily lease of premises that indemnifies any injury". person or organization for damage to 4. "Coverage territory" means: premises while rented to you or a. The United States of America (including its temporarily occupied by you with territories and possessions), Puerto Rico permission of the owner is not an "insured and Canada; contract"; b. International waters.or airspace, but only if b. A sidetrack agreement; the injury or damage occurs in the course c. Any easement or license agreement, of travel or transportation between any except in connection with construction or places included in Paragraph a. above; or demolition operations on or within 50 feet c. All other parts of the world if the injury or of a railroad; damage arises out of: d. An obligation, as required by ordinance, to (1) Goods or products made or sold by indemnify a municipality, except in you in the territory described in connection with work for a municipality; paragraph a. above; e. An elevator maintenance agreement; (2) The activities of a person whose home f. That part of any other contract or is in the territory described in agreement pertaining to your business paragraph a. above, but is away for a (including an indemnification of a short time on your business; or municipality in connection with work (3) "Personal and advertising injury" performed for a municipality) under which offenses that take place through the you assume the tort liability of another Internet or similar electronic means of party to pay for "bodily injury" or "property communication; damage" to a third person or organization. 391-1003 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 74 of 81 Tort liability means a liability that would be imposed by law in the absence of any contract or agreement. Paragraph f. does not include that part of any contract or agreement: (1) That indemnifies a railroad for "bodily injury" or "property damage" arising out of construction or demolition operations, within 50 feet of any railroad property and affecting any railroad bridge or trestle, tracks, road beds, tunnel, underpass or crossing; (2) That indemnifies an architect, engineer or surveyor for injury or damage arising out of: (a) Preparing, approving or failing to prepare or approve maps, drawings, opinions, reports, surveys, change orders, designs or specifications; or (b) Giving directions or instructions, or failing to give them, if that is the primary cause of the injury or damage; or (3) Under which the insured, if an architect, engineer or surveyor, assumes liability for an injury or damage arising out of the insured's rendering or failure to render ••professional services, including those listed in paragraph (2) above and supervisory, inspection or engineering services. 10. "Leased worker" means a person leased to you by a labor leasing firm under an agreement between you and the labor leasing firm, to perform duties related to the conduct of your business. "Leased worker" does not include a "temporary worker". 11. "Loading or unloading" means the handling of property: a. After it is moved from the place where it is accepted for movement into or onto an aircraft, watercraft or "auto"; b. While it is in or on an aircraft, watercraft or "auto"; or c. While it is being moved from an aircraft, watercraft or "auto" to the place where it is finally delivered; but "loading or unloading" does not include the movement of property by means of a mechanical device, other than a hand truck, that is not attached to the aircraft, watercraft or "auto". 12. "Mobile equipment" means any of the following types of land vehicles, including any attached machinery or equipment: a. Bulldozers, farm machinery, forklifts and other vehicles designed for use principally off public roads; b. Vehicles maintained for use solely on or next to premises you own or rent; c. Vehicles that travel on crawler treads; d. Vehicles, whether self-propelled or not, on which are permanently mounted: (1) Power cranes, shovels, loaders, diggers or drills; or (2) Road construction or resurfacing equipment such as graders, scrapers or rollers; e. Vehicles not described in paragraphs a., b., c. or d. above that are not self- propelled and are maintained primarily to provide mobility to permanently attached equipment of the following types: (1) Air compressors, pumps and generators, including spraying, welding, building cleaning, geophysical exploration, lighting and well servicing equipment; or (2) Cherry pickers and similar devices used to raise or lower workers; f. Vehicles not described in paragraphs a., b., c. or d. above maintained primarily for purposes other than the transportation of persons or cargo. However, self-propelled vehicles with the following types of permanently attached equipment are not "mobile equipment" but will be considered "autos": (1) Equipment designed primarily for: (a) Snow removal; (b) Road maintenance, but not construction or resurfacing; or (c) Street cleaning; (2) Cherry pickers and similar devices mounted on automobile or truck chassis and used to raise or lower workers; and (3) Air compressors, pumps and generators, including spraying, welding, building cleaning, geophysical exploration, lighting and well servicing equipment. However, "mobile equipment" does not include any land vehicles that are subject to a compulsory or financial responsibility 391-1003 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 75 of 81 law or other motor vehicle insurance law in the state where they are licensed or principally garaged. Land vehicles subject to a compulsory or financial responsibility law or other motor vehicle insurance law are considered "autos'. 13. "Occurrence" means an accident, including continuous or repeated exposure to substantially the same general harmful conditions. 14. "Personal and advertising injury" means injury, including consequential "bodily injury", arising out of one or more of the following offenses: a. False arrest, detention or imprisonment; b. Malicious prosecution; c. The wrongful eviction from, wrongful entry into, or invasion of the right of private occupancy of a room, dwelling or premises that a person occupies, committed by or on behalf of its owner, landlord or lessor; d. Oral or written publication, in any manner, of material that slanders or libels a person or organization or disparages a person's or organization's goods, products or services; e. Oral or written publication, in any manner, of material that violates a person's right of privacy; f. The use of another's advertising idea in your "advertisement" or g. Infringing upon another's copyright, trade dress or slogan in your "advertisement". 15. "Pollutants" mean any solid, liquid, gaseous or thermal irritant or contaminant, including smoke, vapor, soot, fumes, acids, alkalis, chemicals and waste. Waste includes materials to be recycled, reconditioned or reclaimed. 16. "Products — completed operations hazard" a. Includes all "bodily injury" and "property damage" occurring away from premises you own or rent and arising out of "your product" or "your work" except: (1) Products that are still in your physical possession; or (2) Work that has not yet been completed or abandoned. However, "your work" will be deemed completed at the earliest of the following times: (a) When all of the work called for in your contract has been completed. (b) When all of the work to be done at the job site has been completed if your contract calls for work at more than one job site. (c) When that part of the work done at the job site has been put to its intended use by any other person or organization other than another contractor or subcontractor working on the same project. Work that may need service, maintenance, correction, repair or replacement, but which is otherwise complete, will be treated as completed. The "bodily injury" or "property damage" must occur away from premises you own or rent, unless your business includes the selling, handling or distribution of "your product" for consumption on premises you own or rent. b. Does not include "bodily injury" or "property damage" arising out of: (1) The transportation of property, unless the injury or damage arises out of a condition in or on a vehicle not owned or operated by you, and that condition was created by the "loading or unloading" of that vehicle by any insured; or (2) The existence of tools, uninstalled equipment or abandoned or unused materials. 17. "Property damage" means: a. Physical injury to tangible property, including all resulting loss of use of that property. All such loss of use shall be deemed to occur at the time of the physical injury that caused it; or b. Loss of use of tangible property that is not physically injured. All such loss of use shall be deemed to occur at the time of the "occurrence" that caused it. For the purposes of this insurance, electronic data is not tangible property. As used in this definition, electronic data means information, facts or programs stored as, created or used on, or transmitted to or from computer software, including systems and applications software, hard or floppy disks, CD-ROMs, tapes, drives, cells, data processing devices or any other media which are used with electronically controlled equipment. 391-1003 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 76 of 81 18, "Suit" means a civil proceeding in which damages because of "bodily injury", "property damage", "personal and advertising injury" to which this insurance applies are alleged. "Suit" includes: a. An arbitration proceeding in which such damages are claimed and to which the insured must submit or does submit with our consent; or b. Any other alternative dispute resolution proceeding in which such damages are claimed and to which the insured submits with our consent. 19. "Temporary worker" means a person who is furnished to you to substitute for a permanent "employee" on leave or to meet seasonal or short-term workload conditions. 20. "Unmanned aircraft' means an aircraft that is not: a. Designed; b. Manufactured; or c. Modified after manufacture; to be controlled directly by a person from within or on the aircraft. 21. "Volunteer worker" means a person who is not your "employee", and who donates his or her work and acts at the direction of and within the scope of duties determined by you, and is not paid a fee, salary or other compensation by you or anyone else for their work performed for you. 22. "Your product': a. Means: (1) Any goods or products, other than real property, manufactured, sold, handled, distributed or disposed of by: (a) You; (b) Others trading under your name; or (c) A person or organization whose business or assets you have acquired; and (2) Containers (other than vehicles), materials, parts or equipment furnished in connection with such goods or products. b. Includes: (1) Warranties or representations made at any time with respect to the fitness, quality, durability, performance or use of "your product; and (2) The providing of or failure to provide warnings or instructions. c. Does not include vending machines or other property rented to or located for the use of others but not sold. 23. "Your work": a. Means: (1) Work or operations performed by you or on your behalf; and (2) Materials, parts or equipment furnished in connection with such work or operations. b. Includes: (1) Warranties or representations made at any time with respect to the fitness, quality, durability, performance or use of "your work"; and (2) The providing of or failure to provide warnings or instructions. SECTION III — COMMON POLICY CONDITIONS (APPLICABLE TO SECTION I — PROPERTY AND SECTION II — LIABILITY) A. Cancellation 1. The first Named Insured shown in the Declarations may cancel this policy by mailing or delivering to us advance written notice of cancellation. 2. We may cancel this policy by mailing or delivering to the first Named Insured written notice of cancellation at least: a. 5 days before the effective date of cancellation if any one of the following conditions exists at any building that is Covered Property in this policy: (1) The building has been vacant or unoccupied 60 or more consecutive days. This does not apply to: (a) Seasonal unoccupancy; or (b) Buildings in the course of construction, renovation or addition. Buildings with 65% or more of the rental units or floor area vacant or unoccupied are considered unoccupied under this provision. (2) After damage by a covered cause of loss, permanent repairs to the building: (a) Have not started, and (b) Have not been contracted for, within 30 days of initial payment of loss. 391-1003 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 77 of 81 (3) The building has: (a) An outstanding order to vacate; (b) An outstanding demolition order; C. or (c) Been declared unsafe by governmental authority. (4) Fixed and salvageable items have been or are being removed from the building and are not being replaced. This does not apply to such removal that is necessary or incidental to any renovation or remodeling. (5) Failure to: (a) Furnish necessary heat, water, sewer service or electricity for 30 consecutive days or more, except during a period of seasonal unoccupancy; or (b) Pay property taxes that are owed and have been outstanding for more than one year following the date due, except that this provision will not apply where you are in a bona fide dispute with the taxing authority regarding payment of such taxes. b. 10 days before the effective date of cancellation if we cancel for nonpayment of premium. c. 30 days before the effective date of cancellation if we cancel for any other reason. 3. We will mail or deliver our notice to the first Named Insured's last mailing address known to us. 4. Notice of cancellation will state the effective date of cancellation. The policy period will end on that date. 5. If this policy is cancelled, we will send the first Named Insured any premium refund due. If we cancel, the refund will be pro rate. If the first Named Insured cancels, the refund may be less than pro rata. The cancellation will be effective even if we have not made or offered a refund. 6. If notice is mailed, proof of mailing will be sufficient proof of notice. B. Changes This policy contains all the agreements between you and us concerning the insurance afforded. The first Named Insured shown in the Declarations is authorized to make changes in the terms of this policy with our consent. This policy's terms can be 3 E. amended or waived only by endorsement issued by us and made a part of this policy. Concealment, Misrepresentation or Fraud This policy is void in any case of fraud by you as it relates to this policy at any time. It is also void if you or any other insured, at any time, intentionally conceals or misrepresents a material fact concerning: 1. This policy; 2. The Covered Property; 3. Your interest in the Covered Property; or 4. A claim under this policy. Examination of Your Books and Records We may examine and audit your books and records as they relate to this policy at any time during the policy period and up to three years afterward. We have the right to make copies of these books and records. Inspections and Surveys 1. We have the right but not the duty to: a. Make inspections and surveys at any time; b. Give you reports on the conditions we find; and c. Recommend changes. 2. We are not obligated to make any inspections, surveys, reports or recommendations and any such actions we do undertake relate only to insurability and the premiums to be charged. We do not make safety inspections. We do not undertake to perform the duty of any person or organization to provide for the health or safety of workers or the public. We do not warrant that conditions: a. Are safe and healthful; or b. Comply with laws, regulations, codes or standards. 3. Paragraphs 1. and 2. of this condition apply not only to us, but also to any rating, advisory, rate service or similar organization which makes insurance inspections, surveys, reports or recommendations. 4. Paragraph 2. of this condition does not apply to any inspections, surveys, reports or recommendations we may make relative to certification, under state or municipal statutes, ordinances or regulations, of boilers, pressure vessels or elevators. F. Insurance Under Two or More Coverages If two or more of this policy's coverages apply to the same loss or damage, you may choose only one of these coverages to apply to that loss. 391.1003 08 16 Includes copyrighted material of Insurance services Office, Inc., with its permission. Page 78 of 81 1. SECTION I — PROPERTY, if two or more of this coverage part's coverages apply to the same loss or damage, we will not pay more than the actual amount of the loss or damage. 2. SECTION II — LIABILITY, it is our stated intent that the various Coverage Parts, forms, endorsements or policies issued to the named insured by us, or any company affiliated with us, do not provide any duplication or overlap of coverage for the same claim, "suit", "occurrence", offense, accident, "wrongful act" or loss. We will not pay more than the actual amount of the loss or damage. If this Coverage Part and any other Coverage Part, form, endorsement or policy issued to the named insured by us, or any company affiliated with us, apply to the same claim, "suit", occurrence, offense, accident, "wrongful act" or loss, the maximum Limit of Insurance under all such Coverage Parts, forms, endorsements or policies combined shall not exceed the highest applicable Limit of Insurance under any one Coverage Part, form, endorsement or policy. This condition does not apply to any Excess or Umbrella Policy issued by us specifically to apply as excess insurance over this policy. G. Liberalization If we adopt any revision that would broaden the coverage under this policy without additional premium within 45 days prior to or during the policy period, the broadened coverage will immediately apply to this policy. H. Other Insurance 1. SECTION I — PROPERTY If there is other insurance covering the same loss or damage, we will pay only for the amount of covered loss or damage in excess of the amount due from that other insurance, whether you can collect on it or not. But, we will not pay more than the applicable Limit of Insurance of SECTION I — PROPERTY. 2. SECTION II — LIABILITY If other valid and collectible insurance is available to the insured for a loss we cover under SECTION II — LIABILITY, our obligations are limited as follows: a. Primary Insurance This insurance is primary except when paragraph b. below applies. If this insurance is primary, our obligations are not affected unless any of the other insurance is also primary. Then, we will share with all that other insurance by the method described in paragraph c. below. However, if you agree in a written contract, written agreement, or written permit that the insurance provided to any person or organization included as an Additional Insured under this Coverage Part is primary and non-contributory, we will not seek contribution from any other insurance available to that Additional Insured which covers the Additional Insured as a Named Insured except: (1) For the sole negligence of the Additional Insured; or (2) When the Additional Insured is an Additional Insured under another liability policy. b. Excess Insurance This insurance is excess over: (1) Any of the other insurance, whether primary, excess, contingent or on any other basis: (a) That is Fire, Extended Coverage, Builder's Risk, Installation Risk or similar coverage for "your work"; (b) That is Property Insurance for premises rented to you or temporarily occupied by you with permission of the owner; (c) That is insurance purchased by you to cover your liability as a tenant for "property damage" to premises rented to you or temporarily occupied by you with permission of the owner; or (d) If the loss arises out of the maintenance or use of aircraft, "autos" or watercraft to the extent not subject to SECTION II — LIABILITY, Exclusion g. Aircraft, Auto or Watercraft; and (2) Any other primary insurance available to you covering liability for damages arising out of the premises or operations, or the products and completed operations, for which you have been added as an additional insured by attachment of an endorsement. When this insurance is excess, we will have no duty under SECTION II — LIABILITY to defend the insured against any "suit" if any other insurer has a duty to defend the insured against that "suit". If no other insurer defends, we will undertake to do so, but we will be entitled to the 391-1003 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 79 of 81 insured's rights against all those other premium in accordance with our rates and insurers. rules then in effect. c. When this insurance is excess over other 3. With our consent, you may continue this policy insurance, we will pay only our share of in force by paying a continuation premium for the amount of the loss, if any, that each successive one-year period. The exceeds the sum of: premium must be: (1) The total amount that all such other a. Paid to us prior to the anniversary date; insurance would pay for the loss in the and absence of this insurance; and b. Determined in accordance with paragraph (2) The total of all deductible and self- 2. above, insured amounts under all that other Our forms then in effect will apply. If you do insurance. not pay the continuation premium, this policy d. We will share the remaining loss, if any, will expire on the first anniversary date that we with any other insurance that is not have not received the premium. described in this provision and was not 4. Undeclared exposures or change in your bought specifically to apply in excess of business operation, acquisition or use of the Limits of Insurance shown in the locations may occur during the policy y p If period Declarations for this Coverage. c that is not shown in the Declarations. If so, we e. Method of Sharing may require an additional premium. That If all of the other insurance permits premium will be determined in accordance contribution by equal shares, we will follow with our rates and rules then in effect. this method also. Under this approach J. Premium Audit each insurer contributes equal amounts 1. This policy is subject to audit if a premium until it has paid its applicable Limit of designated as an advance premium is shown Insurance or none of the loss remains, in the Declarations. We will compute the final whichever comes first, premium due when we determine your actual If any of the other insurance does not exposures. permit contribution by equal shares, we 2. Premium shown in this policy as advance will contribute by limits. Under this premium is a deposit premium only. At the method, each insurer's share is based on close of each audit period, we will compute the the ratio of its applicable Limit of earned premium for that p period and send Insurance to the total applicable limits of notice to the first Named Insured. The due insurance of all insurers. date for audit premiums is the date shown as f. When this insurance is excess, we will the due date on the bill. If the sum of the have no duty under Business Liability advance and audit premiums paid for the Coverage to defend any claim or "suit" policy period is greater than the earned that any other insurer has a duty to premium, we will return the excess to the first defend. If no other insurer defends, we will Named Insured. undertake to do so; but we will be entitled 3. The first Named Insured must keep records of to the insured's rights against all those the information we need for premium other insurers. computation and send us copies at such times I. Premiums as we may request. 1. The first Named Insured shown in the K. Transfer of Rights of Recovery Against Others Declarations: to Us a. Is responsible for the payment of all 1. Applicable to SECTION I — PROPERTY premiums; and Coverage: b. Will be the payee for any return premiums If any person or organization to or for whom we pay. we make payment under this policy has rights 2. The premium shown in the Declarations was to recover damages from another, those rights computed based on rates in effect at the time are transferred to us to the extent of our the policy was issued. On each renewal, payment. That person or organization must do continuation or anniversary of the effective everything necessary to secure our rights and date of this policy, we will compute the must do nothing after loss to impair them. But you may waive your rights against another party in writing: 391.1003 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 80 of 81 a. Prior to a loss to your Covered Property. b. After a loss to your Covered Property only if, at time of loss, that party is one of the following: (1) Someone insured by this insurance; (2) A business firm: (a) Owned or controlled by you; or (b) That owns or controls you; or (3) Your tenant. You may also accept the usual bills of lading or shipping receipts limiting the liability of carriers. This will not restrict your insurance. 2. Applicable to SECTION II — LIABILITY Coverage: If the insured has rights to recover all or part of any payment we have made under this Coverage Part, those rights are transferred to us. The insured must do nothing after loss to impair such rights. At our request, the insured will bring "suit" or transfer those rights to us and help us enforce them. We waive any right of recovery we may have against any person or organization with whom you have a written contract, permit or agreement to waive any rights of recovery against such person or organization 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 condition does not apply to Medical Expenses Coverage. L. Transfer of Your Rights and Duties Under This Policy Your rights and duties under this policy may not be transferred without our written consent except in the case of death of an individual Named Insured. If you die, your rights and duties will be transferred to your legal representative but only while that legal representative is acting within the scope of their duties as your legal representative. Until your egal representative is appointed, anyone with proper temporary custody of your property will have your rights and duties but only with respect to that property. 391.101)3 08 16 Includes copyrighted material of Insurance services Office, Inc., with its permission. Page 81 of 81 WAIVER OF OUR RIGHT TO RECOVER FROM OTHERS ENDORSEMENT-CALIFORNIA We have the right to recover our payments from anyone liable for an injury covered by this policy. We will not enforce our right against the person or organization named in the Schedule. (This agreement applies only to the extent that you perform work under a written contract that requires you to obtain this agreement from us.) You must maintain payroll records accurately segregating the remuneration of your employees while engaged in the work described in the Schedule. The additional premium for this endorsement shall be 2 % of the California workers' compensation premium otherwise due on such remuneration. Schedule Person or Organization Job Description APPLIES AS BLANKET WAIVER FOR THOSE HAVING A WRITTEN CONTRACT WITH THE POLICY- HOLDER REQUIRING WOS FOR WC POLICYHOLDER EMPLOYEES. This endorsement changes the policy to which It Is attached and is effective on the date Issued unless otherwise stated. (The information below is required only when this endorsement is issued subsequent to preparation of the policy.) Endorsement Effective 04/04/2024 Policy No. WBF-J373715-01 Endorsement No. Insured: JPW Com munications Inc, #OBF J373720 01 Insurance Company CITIZENS INSURANCE COMPANY OF AMERICA Countersigned By WC 04 03 06 (Ed 04-64) JPWCOMM-01 BRITTANY ACORO CERTIFICATE OF LIABILITY INSURANCE FIDAT, (MMIDDIYYYY) 4/23/2025 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 of the policy,certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). PRODUCER CONTACT NAME: Culture Insurance Services,LLC PHONE FAX 140 West 3rd Avenue (A/C,No,Ext): (619)346-9553 (A/C,No):(619)324-7035 Escondido,CA 92026 ADD"RIESS:accounting@cultureinsurance.com INSURERS AFFORDING COVERAGE NAIC# INSURER A:Hanover Insurance Company NAIC#22292 22292 INSURED INSURER B:United Specialty Insurance Company JPW Communications Inc. INSURER C:Trisura Specialty Insurance 16188 2710 Loker Ave W Suite 300 INSURER D Carlsbad,CA 92010 INSURER E INSURER F: COVERAGES CERTIFICATE NUMBER: 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 TYPE OF INSURANCE ADDL SUBR POLICY NUMBER POLICY EFF POLICY EXP LIMITS LTR INSD WVD MMIDDIYYYY MMIDDIYYYY A X COMMERCIAL GENERAL LIABILITY EACH OCCURRENCE $ 2,000,000 CLAIMS-MADE X OCCUR OBF J373720 02 4/4/2025 4/4/2026 DAMAGE TO RENTED 300,000 X X PREMISES Ea occurrence $ MED EXP(Any oneperson) $ 5,000 PERSONAL&ADV INJURY $ 2,000,000 GEN'L AGGREGATE LIMIT APPLIES PER: GENERAL AGGREGATE $ 4,000,000 POLICY ] JEC T TLOC PRODUCTS-COMP/OP AGG $ 4,000,000 X OTHER:HNOA INCLUDED $ A AUTOMOBILE LIABILITY COMBINED SINGLE LIMIT 1,000,000 Ea accident) ccident $ ANY AUTO OBF J373720 02 4/4/2025 4/4/2026 BODILY INJURY Perperson) $ OWNED SCHEDULED AUTOS ONLY AUTOS BODILY INJURY Per accident $ X HIRED X NON-OWNED PROPERTY DAMAGE AUTOS ONLY AUTOS ONLY Per accident) ccident $ X HNOA COVERAGE ONL $ A X UMBRELLA LIAB X OCCUR EACH OCCURRENCE $ 1,000,000 EXCESS LIAB CLAIMS-MADE OBF J373720 02 4/4/2025 4/4/2026 AGGREGATE $ 1,000,000 DED X RETENTION$ 0 $ A WORKERS COMPENSATION X PER OTH- AND EMPLOYERS'LIABILITY STATUTE ER YIN W2F-J373715-02 4/4/2025 4/4/2026 1,000,000 ANY PROPRIETOR/PARTNER/EXECUTIVE ❑ E.L.EACH ACCIDENT $ OFFICER/MEMBER EXCLUDED? NIA (Mandatory in NH) E.L.DISEASE-EA EMPLOYEE $ 1,000,000 If yes,describe under 1 000 000 DESCRIPTION OF OPERATIONS below E.L.DISEASE-POLICY LIMIT $ B Professional Liab GCT-1847134-03 4/4/2025 4/4/2026 Policy Aggregate 2,000,000 C Cyber Liability AB-6609930-06 4/4/2025 4/4/2026 Aggregate 2,000,000 DESCRIPTION OF OPERATIONS I LOCATIONS I VEHICLES (ACORD 101,Additional Remarks Schedule,may be attached if more space is required) City of Santa Ana,its City Council,its officers,officials,employees,agents,and volunteers are named as additional insured per the attached endorsement. This insurance is primary.Waiver of Subrogation applies. Digitally signed Tu Tran byTuTran Nguyen Date:e2025.04.24 F�P! ROVED 16:10:14-07'00' Tran Nguyen at 4:09 pm,Apr 24, 2025 CERTIFICATE HOLDER CANCELLATION SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE City of Santa Ana THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN Y ACCORDANCE WITH THE POLICY PROVISIONS. Attn:City Manager's Office 20 Civic Center Plaza, M-31 Santa Ana,CA 92701 AUTHORIZED REPRESENTATIVE ACORD 25(2016/03) f ©1988-2015 ACORD CORPORATION. All rights reserved. The ACORD name and logo are registered marks of ACORD JPW Communications Inc. #013F J373720 02 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. BUSINESSOWNERS LIABILITY SPECIAL BROADENING ENDORSEMENT This endorsement modifies insurance provided under the following: BUSINESSOWNERS COVERAGE FORM SUMMARY OF COVERAGES Limits Page 1. Additional Insured by Contract, Agreement or Permit Included 1 2. Additional Insured - Broad Form Vendors Included 2 3. Alienated Premises Included 3 4. Broad Form Property Damage - Borrowed Equipment, Customers Included 3 Goods and Use of Elevators 5. Incidental Malpractice (Employed Nurses, EMT's and Paramedics) Included 3 6. Personal and Advertising Injury - Broad Form Included 4 7. Included 4 Product Recall Expense Each Occurrence Limit $25,000 5 Occurrence Product Recall Expense Aggregate Limit $50,000 5 Aggregate Product Recall Deductible $500 5 8. Unintentional Failure to Disclose Hazards Included 6 9. Unintentional Failure to Notify Included 6 This endorsement amends coverages provided under the Businessowners Coverage Form through new coverages and broader coverage grants. This coverage is subject to the provisions applicable to the Businessowners Coverage Form, except as provided below. The following changes are made to SECTION II - (2) Premises you own, rent, lease or LIABILITY: occupy; or 1. Additional Insured by Contract, Agreement or (3) Your maintenance, operation or use of Permit equipment leased to you. The following is added to SECTION II - b. The insurance afforded to such additional LIABILITY, C. Who Is An Insured: insured described above: Additional Insured by Contract, Agreement or (1) Only applies to the extent permitted by Permit law; and a. Any person or organization with whom you (2) Will not be broader than the insurance agreed in a written contract, written which you are required by the contract, agreement or permit to add such person or agreement or permit to provide for such organization as an additional insured on additional insured. your policy is an additional insured only with (3) Applies on a primary basis if that is respect to liability for bodily injury , required by the written contract, written "property damage", or "personal and agreement or permit. advertising injury" caused, in whole or in part, by your acts or omissions, or the acts (4) Will not be broader than coverage or omissions of those acting on your behalf, provided to any other insured. but only with respect to: (5) Does not apply if the "bodily injury", (1) "Your work" for the additional insured(s) "property damage" or "personal and designated in the contract, agreement or advertising injury'is otherwise excluded permit; from coverage under this Coverage Part, including any endorsements thereto. 391-1006 08 16 Includes copyrighted materials of Insurance Services Offices, Inc., with its permission. Page 1 of 6 Hanover Insurance Group_ OBFJ373720 5701132 c. This provision does not apply: The most we will pay on behalf of the (1) Unless the written contract or written additional insured for a covered claim is the agreement was executed or permit was lesser of the amount of insurance: issued prior to the "bodily injury", 1. Required by the contract, agreement or "property damage", or "personal injury permit described in Paragraph a.; or and advertising injury". 2. Available under the applicable Limits of (2) To any person or organization included Insurance shown in the Declarations. as an insured by another endorsement This endorsement shall not increase the issued by us and made part of this applicable Limits of Insurance shown in the Coverage Part. Declarations (3) To any lessor of equipment: e. All other insuring agreements, exclusions, (a) After the equipment lease expires; or and conditions of the policy apply. (b) If the "bodily injury", "property 2. Additional Insured - Broad Form Vendors damage", "personal and advertising The following is added to SECTION II - injury" arises out of sole negligence LIABILITY, C. Who Is An Insured: of the lessor. (4) To any: Additional Insured - Broad Form Vendors a. Any person or organization that is a vendor (a) Owners or other interests from whom with whom you agreed in a written contract land has been leased if the "occurrence" takes place or the additional insured under this Coverage Part offense is committed after the lease is an insured, but only with respect to liability for the land expires; or for "bodily injury" or "property damage" (b) Managers or lessors of premises if: arising out of "your products" which are (i) The "occurrence" takes place or distributed or sold in the regular course of the offense is committed after the vendors business. you cease to be a tenant in that b. The insurance afforded to such vendor premises; or described above: (ii) The "bodily injury", "property (1) Only applies to the extent permitted by damage", "personal injury" or law; "advertising injury" arises out of (2) Will not be broader than the insurance structural alterations, new which you are required by the contract or construction or demolition agreement to provide for such vendor; operations performed by or on behalf of the manager or lessor. (3) Will not be broader than coverage (5) To "bodily injury", "property damage" or provided to any other insured; and "personal and advertising injury" arising (4) Does not apply if the "bodily injury", out of the rendering of or the failure to "property damage" or "personal and render any professional services. advertising injury" is otherwise excluded from coverage under this Coverage Part, This exclusion applies even if the claims including any endorsements thereto against any insured allege negligence or other wrongdoing in the supervision, c. With respect to insurance afforded to such hiring, employment, training or vendors, the following additional exclusions monitoring of others by that insured, if apply: the "occurrence" which caused the The insurance afforded to the vendor does "bodily injury" or "property damage" or not apply to: the offense which caused the "personal and advertising injury" involved the (1) "Bodily injury" or "property damage" for rendering of or failure to render any which the vendor is obligated to pay professional services or for you. damages by reasons of the assumption of liability in a contract or agreement. This d. With respect to the insurance afforded to exclusion does not apply to liability for these additional insureds, the following is damages that the insured would have in added to SECTION II - LIABILITY, D. Liability the absence of the contract or and Medical Expense Limits of Insurance: agreement; (2) Any express warranty unauthorized by you; 391-1006 08 16 Includes copyrighted materials of Insurance Services Offices, Inc., with its permission. Page 2 of 6 (3) Any physical or chemical change in the The most we will pay on behalf of the vendor product made intentionally by the for a covered claim is the lesser of the vendor; amount of insurance: (4) Repackaging, unless unpacked solely for 1. Required by the contract or agreement the purpose of inspection, described in Paragraph a.; or demonstration, testing, or the 2. Available under the applicable Limits of substitution of parts under instruction Insurance shown in the Declarations; from the manufacturer, and then repackaged in the original container; This endorsement shall not increase the (5) Any failure to make such inspection, applicable Limits of Insurance shown in the adjustments, tests or servicing as the Declarations. vendor has agreed to make or normally 3. Alienated Premises undertakes to make in the usual course SECTION II - LIABILITY, B. Exclusions, 1. of business in connection with the sale Applicable To Business Liability Coverage k. of the product; Damage to Property, paragraph (2) is replaced by (6) Demonstration, installation, servicing or the following: repair operations, except such (2) Premises you sell, give away or abandon, if operations performed at the vendor's the "property damage" arises out of any part premises in connection with the sale of of those premises and occurred from hazards the product; that were known by you, or should have (7) Products which, after distribution or sale reasonably been known by you, at the time by you, have been labeled or relabeled the property was transferred or abandoned. or used as a container, part or 4. Broad Form Property Damage - Borrowed ingredient of any other thing or Equipment, Customers Goods, Use of Elevators substance by or for the vendor; a. The following is added to SECTION II - (8) "Bodily injury" or "property damage" LIABILITY, B. Exclusions, 1. Applicable To arising out of the sole negligence of the Business Liability Coverage, k. Damage to vendor for its own acts or omissions or Property: those of its employees or anyone else Paragraph (4) does not apply to "property acting on its behalf. However, this damage" to borrowed equipment while at a exclusion does not apply to: jobsite and not being used to perform (a) The exceptions contained within the operations. exclusion in subparagraphs (4) or (6) Paragraph (3), (4) and (6) do not apply to above; or "property damage" to "customers goods" (b) Such inspections, adjustments, tests while on your premises nor to the use of or servicing as the vendor has elevators. agreed make or normally b. For the purposes of this endorsement, the undertakess to make the usual following definition is added to SECTION II - course of business, in connection with the distribution or sale of the LIABILITY, F. Liability and Medical Expenses products. Definitions: (9) "Bodily injury" or "property damage" 1. "Customers goods" means property of your customer on your premises for the place before you have signed the purpose of being: contract or agreement with the vendor. a. Worked on; or (10)To any person or organization included b. Used in your manufacturing process. as an insured by another endorsement c. The insurance afforded under this provision is issued by us and made part of this excess over any other valid and collectible Coverage Part. property insurance (including deductible) (11)Any insured person or organization, available to the insured whether primary, from whom you have acquired such excess, contingent or on any other basis. products, or any ingredient, part or container, entering into, accompanying 5. Incidental Malpractice - Employed Nurses, EMT's or containing such products. and Paramedics d. With respect to the insurance afforded to SECTION II - LIABILITY, C. Who Is An Insured, these vendors, the following is added to paragraph 2.a.(1)(d) does not apply to a nurse, SECTION II - LIABILITY, D. Liability and Medical Expense Limits of Insurance: 391-1006 08 16 Includes copyrighted materials of Insurance Services Offices, Inc., with its permission. Page 3 of 6 Hanover Insurance Group_ OBF J373720 5701132 emergency medical technician or paramedic o. Recall of Products, Work or Impaired employed by you if you are not engaged in the Property is replaced by the following: business or occupation of providing medical, o. Recall of Products, Work or Impaired paramedical, surgical, dental, x-ray or nursing Property services. 6. Personal Injury - Broad Form Damages claimed for any loss, cost or expense incurred by you or others for a. SECTION II - LIABILITY, B. Exclusions, 2. the loss of use, withdrawal, recall, Additional Exclusions Applicable only to inspection, repair, replacement, "Personal and Advertising Injury", paragraph adjustment, removal or disposal of: e. is deleted. (1) "Your product"; b. SECTION II - LIABILITY, F. Liability and Medical Expenses Definitions, 14. "Personal (2) "Your work"; or and advertising injury", paragraph b. is (3) "Impaired property"; replaced by the following: If such product, work or property is b. Malicious prosecution or abuse of withdrawn or recalled from the market or process. from use by any person or organization c. The following is added to SECTION II - because of a known or suspected defect, LIABILITY, F. Liability and Medical Expenses deficiency, inadequacy or dangerous Definitions, Definition 14. "Personal and condition in it, but this exclusion does advertising injury : not apply to "product recall expenses" that you incur for the covered recall of "Discrimination" (unless insurance thereof is "your product". prohibited by law) that results in injury to the However, the exception to the exclusion feelings or reputation of a natural person, does not apply to "product recall but only if such "discrimination" is: expenses" resulting from: (1) Not done intentionally by or at the (4) Failure of any products to accomplish direction of: their intended purpose; (a) The insured; (5) Breach of warranties of fitness, (b) Any officer of the corporation, quality, durability or performance; director, stockholder, partner or member of the insured; and (6) Loss of customer approval, or any cost incurred to regain customer (2) Not directly or indirectly related to an approval; "employee", not to the employment, prospective employment or termination (7) Redistribution or replacement of of any person or persons by an insured. your product which has been recalled by like products or d. For purposes of this endorsement, the substitutes; following definition is added to SECTION II - LIABILITY, F. Liability and Medical Expenses (B) Caprice or whim of the insured; Definitions: (9) A condition likely to cause loss of 1. "Discrimination" means the unlawful which any insured knew or had treatment of individuals based upon race, reason to know at the inception of color, ethnic origin, gender, religion, age, this insurance; or sexual preference. "Discrimination" (10)Asbestos, including loss, damage or does not include the unlawful treatment clean up resulting from asbestos or of individuals based upon developmental, asbestos containing materials; or physical, cognitive, mental, sensory or (11)Recall of "your products" that have emotional impairment or any no known or suspected defect solely combination of these. because a known or suspected e. This coverage does not apply if liability defect in another of "your products" coverage for "personal and advertising has been found. injury" is excluded either by the provisions of b. The following is added to SECTION II - the Coverage Form or any endorsement LIABILITY, C. Who Is An Insured, paragraph thereto. 3.b.: 7. Product Recall Expense "Product recall expense" arising out of any a. SECTION II - LIABILITY, B. Exclusions, 1. withdrawal or recall that occurred before you Applicable To Business Liability Coverage, acquired or formed the organization. 391-1006 08 16 Includes copyrighted materials of Insurance Services Offices, Inc., with its permission. Page 4 of 6 c. The following is added to SECTION II - of a deductible amount, you shall LIABILITY, D. Liability and Medical Expenses promptly reimburse us for the part of the Limits of Insurance: deductible amount we paid. Product Recall Expense Limits of Insurance The Product Recall Expense Limits of a. The Limits of Insurance shown in the Insurance apply separately to each SUMMARY OF COVERAGES of this consecutive annual period and to any endorsement and the rules stated below remaining period of less than 12 months, fix the most that we will pay under this starting with the beginning of the policy Product Recall Expense Coverage period shown in the Declarations, unless the regardless of the number of: policy period is extended after issuance for an additional period of less than 12 months. (1) Insureds; In that case, the additional period will be (2) "Covered Recalls" initiated; or deemed part of the last preceding period for (3) Number of "your products" the purposes of determining the Limits of withdrawn. Insurance. b. The Product Recall Expense Aggregate d. The following is added to SECTION II - Limit is the most that we will reimburse LIABILITY, E. Liability and Medical Expense you for the sum of all "product recall General Conditions, 2. Duties in the Event of expenses" incurred for all "covered Occurrence, Offense, Claim or Suit: recalls" initiated during the policy period. You must see to it that the following are c. The Product Recall Each Occurrence done in the event of an actual or anticipated covered recall that may result in product Limit is the most we will pay in connection with any one defect or recall expense deficiency. (1) Give us prompt notice of any discovery d. All "product recall expenses" in or notification that "your product" must connection with substantially the same be withdrawn or recalled. Include a general harmful condition will be description of your product and the deemed to arise out of the same defect reason for the withdrawal or recall; or deficiency and considered one (2) Cease any further release, shipment, "occurrence". consignment or any other method of e. Any amount reimbursed for "product distribution of like or similar products recall expenses" in connection with any until it has been determined that all one "occurrence" will reduce the amount such products are free from defects that of the Product Recall Expense Aggregate could be a cause of loss under this Limit available for reimbursement of insurance. "product recall expenses" in connection e. For the purposs of this endorsement, the with any other defect or deficiency. following definitions are added to SECTION f. If the Product Recall Expense Aggregate II - LIABILITY, F. Liability and Medical Limit has been reduced by Expenses Definitions: reimbursement of "product recall 1. "Covered recall" means a recall made expenses" to an amount that is less than necessary because you or a government the Product Recall Expense Each body has determined that a known or Occurrence Limit, the remaining suspected defect, deficiency, Aggregate Limit is the most that will be inadequacy, or dangerous condition in available for reimbursement of "product "your product" has resulted or will result recall expenses" in connection with any In "bodily injury" or "property damage". other defect or deficiency. 2. "Product recall expense(s)" means: g. Product Recall Deductible a. Necessary and reasonable expenses We will only pay for the amount of for: "product recall expenses" which are in (1) Communications, including radio excess of the $500 Product Recall or television announcements or Deductible. The Product Recall printed advertisements including Deductible applies separately to each stationary, envelopes and "covered recall". The limits of insurance postage; will not be reduced by the amount of this deductible. We may, or will if required by law, pay all or any part of any deductible amount, if applicable. Upon notice of our payment 391-1006 08 16 Includes copyrighted materials of Insurance Services Offices, Inc., with its permission. Page 5 of 6 14 never P .( insurance Group.. fBFJ373720 5701132 (2) Shipping the recalled products (1) If the "products - completed operations from any purchaser, distributor or hazard" is excluded from coverage tinder user to the place or places this Coverage Part including any designated by you; endorsement thereto; or (3) Remuneration paid to your (2) To ",product recall expense" arising out of regular "employees" for any of "dour products" that are otherwise necessary overtime,; excluded from coverage under this 1:4) Hiring additional persons, other Coverage Part including endorsements than your regular "employees"; thereto. 1;5) Expenses incurred by"employees" 6• Unintentional Failure to Disclose Hazards including transportation and The following is added to SECTION li - accornmodations; LIABILITY, E. Liability and Medical Expenses 1:6) Expenses to rent additional General Conditions: warehouse or storage space; Representations 1:1 Disposai of 'your product", but We will not disclaim Coverage under this only to the extent that specific Coverage fart if you fail to disclose all hazards methods of destruction other than existing as of the inception date of the policy those employed for trash provided such failure is not intentional. discarding or disposal are S, Unintentional Failure to Notify required to avoid "bodily injury" or ,property damage" as a result[ The following is added to SECTION Ili - of such disposal, LIABILITY, E. Liability and Medical Expenses General Conditions, 2. Duties in the Event of you incur exclusively for the purpose Occurrence, Offense, Cialm or Suit: of recailing "your product"; and Your rights afforded under this Coverage Part b. 'Your lost profit resulting from such shall not be prejudiced if you fail to give us "covered recall", notice of an "occurrence", offense, ci,aiin or"suit", !f. This Product Recall, Expense Coverage does solely due to our reasonable and documented not apply: belief that the "bodily injury'' "property damage" or ",Personal and advertiising injury" is not covered under this Policy. ALL OTHER TERMS, CONDITIONS—AND EXCLUSIONS REMAIN UNCHANGED. 391-1006 08 16 Includes copyrighted materials of Insurance Services Offices, Iric., with its permission. Page 6 of 6 JPW Communications Inc. #OBF J373720 02 BUSINESSOWNERS COVERAGE FORM Table of Contents SECTION I — PROPERTY Page Number A. Coverage ............................................................................................................................................. 4 1. Covered Property.......................................................................................................................... 4 2. Property Not Covered................................................................................................................... 5 3. Covered Causes of Loss.............................................................................................................. 6 4. Limitations..................................................................................................................................... 6 5. Additional Coverages................................................................................................................... 7 BusinessIncome.......................................................................................................................... 10 Business Income from Dependent Properties.............................................................................. 17 CivilAuthority................................................................................................................................ 13 Collapse........................................................................................................................................ 8 Commercial Tools and Small Equipment..................................................................................... 27 ComputerEquipment.................................................................................................................... 20 Computer and Funds Transfer Fraud........................................................................................... 34 DebrisRemoval............................................................................................................................ 7 DeferredPayments....................................................................................................................... 31 ElectronicVandalism.................................................................................................................... 31 Employee Theft including ERISA Compliance............................................................................. 18 EquipmentBreakdown ................................................................................................................. 22 ExtraExpense .............................................................................................................................. 12 FineArts ....................................................................................................................................... 28 Fire Department Service Charge.................................................................................................. 8 Fire Protection Equipment Recharge........................................................................................... 18 Forgeryor Alteration..................................................................................................................... 13 GlassExpenses............................................................................................................................ 18 Installation .................................................................................................................................... 27 Interruption of Computer Operations............................................................................................ 32 Leasehold Interest (Tenants only)................................................................................................ 29 Limited Coverage for Fungi, Wet Rot, or Dry Rot ........................................................................ 33 Moneyand Securities................................................................................................................... 21 Money Orders and Counterfeit Money......................................................................................... 13 Ordinanceor Law......................................................................................................................... 14 Preservation of Property............................................................................................................... 8 Pollutant Clean-Up and Removal................................................................................................. 12 Rewards—Arson, Theft and Vandalism....................................................................................... 20 Sales Representative Samples .................................................................................................... 29 Tenant Building Insurance—When Your Lease Requires You to Provide Insurance ................. 34 Tenant Business Personal Property Insurance — When Your Lease Requires You to Provide 34 Insurance...................................................................................................................................... 391-1003 08 16 Includes copyrighted material of Insurance Services Office, Inc.,with its permission. Page 1 of 81 Tenant Signs (Tenants Only) ....................................................................................................... 22 Theft of Telephonic Services........................................................................................................ 34 Unauthorized Business Credit Card Use...................................................................................... 30 UtilityServices.............................................................................................................................. 30 Water Damage, Other Liquids, Powder or Molten Material Damage........................................... 10 6. Coverage Extensions ................................................................................................................... 35 AccountsReceivable.................................................................................................................... 37 Business Personal Property Temporarily in Portable Storage Units............................................ 39 Appurtenant Structures................................................................................................................. 38 Inventory and Loss Appraisal....................................................................................................... 39 Key Replacement and Lock Repair.............................................................................................. 38 Newly Acquired or Constructed Property..................................................................................... 35 OutdoorProperty.......................................................................................................................... 36 PavedSurfaces ............................................................................................................................ 39 PersonalEffects ........................................................................................................................... 36 Personal Property Off Premises................................................................................................... 36 Personal Property In Transit......................................................................................................... 38 Valuable Papers and Records (Other Than Electronic Data) ...................................................... 36 UndergroundPipes....................................................................................................................... 40 B. Exclusions........................................................................................................................................... 40 C. Limits of Insurance............................................................................................................................. 45 D. Deductibles ......................................................................................................................................... 46 E. Property Loss Conditions.................................................................................................................. 47 1. Abandonment................................................................................................................................ 47 2. Appraisal........................................................................................................................................ 47 3. Duties in the Event of Loss or Damage...................................................................................... 47 4. Legal Action Against Us............................................................................................................... 48 5. Loss Payment................................................................................................................................ 48 6. Recovered Property...................................................................................................................... 50 7. Vacancy.......................................................................................................................................... 50 8. Pair, Sets or Parts......................................................................................................................... 51 F. Property General Conditions............................................................................................................. 51 1. Control of Property....................................................................................................................... 51 2. Mortgageholders........................................................................................................................... 51 3. No Benefit to Bailee...................................................................................................................... 52 4. Policy Period, Coverage Territory............................................................................................... 52 5. Protective Devices........................................................................................................................ 52 6. Increase in Hazard ........................................................................................................................ 52 G. Property Definitions........................................................................................................................... 52 SECTION II — LIABILITY A. Coverages ........................................................................................................................................... 59 1. Business Liability.......................................................................................................................... 59 391-1003 08 16 Includes copyrighted material of Insurance Services Office, Inc.,with its permission. Page 2 of 81 Tenant Signs (Tenants Only) ....................................................................................................... 22 Theft of Telephonic Services........................................................................................................ 34 Unauthorized Business Credit Card Use...................................................................................... 30 UtilityServices.............................................................................................................................. 30 Water Damage, Other Liquids, Powder or Molten Material Damage........................................... 10 6. Coverage Extensions ................................................................................................................... 35 AccountsReceivable.................................................................................................................... 37 Business Personal Property Temporarily in Portable Storage Units............................................ 39 Appurtenant Structures................................................................................................................. 38 Inventory and Loss Appraisal....................................................................................................... 39 Key Replacement and Lock Repair.............................................................................................. 38 Newly Acquired or Constructed Property..................................................................................... 35 OutdoorProperty.......................................................................................................................... 36 PavedSurfaces ............................................................................................................................ 39 PersonalEffects ........................................................................................................................... 36 Personal Property Off Premises................................................................................................... 36 Personal Property In Transit......................................................................................................... 38 Valuable Papers and Records (Other Than Electronic Data) ...................................................... 36 UndergroundPipes....................................................................................................................... 40 B. Exclusions........................................................................................................................................... 40 C. Limits of Insurance............................................................................................................................. 45 D. Deductibles ......................................................................................................................................... 46 E. Property Loss Conditions.................................................................................................................. 47 1. Abandonment................................................................................................................................ 47 2. Appraisal........................................................................................................................................ 47 3. Duties in the Event of Loss or Damage...................................................................................... 47 4. Legal Action Against Us............................................................................................................... 48 5. Loss Payment................................................................................................................................ 48 6. Recovered Property...................................................................................................................... 50 7. Vacancy.......................................................................................................................................... 50 8. Pair, Sets or Parts......................................................................................................................... 51 F. Property General Conditions............................................................................................................. 51 1. Control of Property....................................................................................................................... 51 2. Mortgageholders........................................................................................................................... 51 3. No Benefit to Bailee...................................................................................................................... 52 4. Policy Period, Coverage Territory............................................................................................... 52 5. Protective Devices........................................................................................................................ 52 6. Increase in Hazard ........................................................................................................................ 52 G. Property Definitions........................................................................................................................... 52 SECTION II — LIABILITY A. Coverages ........................................................................................................................................... 59 1. Business Liability.......................................................................................................................... 59 391-1003 08 16 Includes copyrighted material of Insurance Services Office, Inc.,with its permission. Page 2 of 81 insured's rights against all those other premium in accordance with our rates and insurers. rules then in effect. c. When this insurance is excess over other 3. With our consent, you may continue this policy insurance, we will pay only our share of in force by paying a continuation premium for the amount of the loss, if any, that each successive one-year period. The exceeds the sum of: premium must be: (1) The total amount that all such other a. Paid to us prior to the anniversary date; insurance would pay for the loss in the and absence of this insurance; and b. Determined in accordance with paragraph (2) The total of all deductible and self- 2. above. insured amounts under all that other Our forms then in effect will apply. If you do insurance. not pay the continuation premium, this policy d. We will share the remaining loss, if any, will expire on the first anniversary date that we with any other insurance that is not have not received the premium. described in this provision and was not 4. Undeclared exposures or change in your bought specifically to apply in excess of business operation, acquisition or use of the Limits of Insurance shown in the locations may occur during the policy period Declarations for this Coverage. that is not shown in the Declarations. If so, we e. Method of Sharing may require an additional premium. That If all of the other insurance permits premium will be determined in accordance contribution by equal shares, we will follow with our rates and rules then in effect. this method also. Under this approach J. Premium Audit each insurer contributes equal amounts 1. This policy is subject to audit if a premium until it has paid its applicable Limit of designated as an advance premium is shown Insurance or none of the loss remains, in the Declarations. We will compute the final whichever comes first. premium due when we determine your actual If any of the other insurance does not exposures. permit contribution by equal shares, we 2. Premium shown in this policy as advance will contribute by limits. Under this premium is a deposit premium only. At the method, each insurer's share is based on close of each audit period, we will compute the the ratio of its applicable Limit of earned premium for that period and send Insurance to the total applicable limits of notice to the first Named Insured. The due insurance of all insurers. date for audit premiums is the date shown as f. When this insurance is excess, we will the due date on the bill. If the sum of the have no duty under Business Liability advance and audit premiums paid for the Coverage to defend any claim or "suit" policy period is greater than the earned that any other insurer has a duty to premium, we will return the excess to the first defend. If no other insurer defends, we will Named Insured. undertake to do so; but we will be entitled 3. The first Named Insured must keep records of to the insured's rights against all those the information we need for premium other insurers. computation and send us copies at such times I. Premiums as we may request. 1. The first Named Insured shown in the K. Transfer of Rights of Recovery Against Others Declarations: to Us a. Is responsible for the payment of all 1. Applicable to SECTION I — PROPERTY premiums; and Coverage: b. Will be the payee for any return premiums If any person or organization to or for whom we pay. we make payment under this policy has rights 2. The premium shown in the Declarations was to recover damages from another, those rights computed based on rates in effect at the time are transferred to us to the extent of our the policy was issued. On each renewal, payment. That person or organization must do continuation or anniversary of the effective everything necessary to secure our rights and date of this policy, we will compute the must do nothing after loss to impair them. But you may waive your rights against another party in writing: 391-1003 08 16 Includes copyrighted material of Insurance Services Office, Inc.,with its permission. Page 80 of 81 a. Prior to a loss to your Covered Property. We waive any right of recovery we may have b. After a loss to your Covered Property only against any person or organization with whom if, at time of loss, that party is one of the you have a written contract, permit or following: agreement to waive any rights of recovery against such person or organization because (1) Someone insured by this insurance; of payments we make for injury or damage (2) A business firm: arising out of your ongoing operations or"your (a) Owned or controlled by you; or work" done under a contract with that person or organization and included in the "products- (b) That owns or controls you; or completed operations hazard". (3) Your tenant. This condition does not apply to Medical You may also accept the usual bills of lading Expenses Coverage. or shipping receipts limiting the liability of L. Transfer of Your Rights and Duties Under This carriers. Policy This will not restrict your insurance. Your rights and duties under this policy may not be 2. Applicable to SECTION II — LIABILITY transferred without our written consent except in Coverage: the case of death of an individual Named Insured. If the insured has rights to recover all or part of If you die, your rights and duties will be transferred any payment we have made under this to your legal representative but only while that Coverage Part, those rights are transferred to legal representative is acting within the scope of us. The insured must do nothing after loss to their duties as your legal representative. Until your impair such rights. At our request, the insured legal representative is appointed, anyone with will bring "suit" or transfer those rights to us proper temporary custody of your property will and help us enforce them. have your rights and duties but only with respect to that property. 391-1003 08 16 Includes copyrighted material of Insurance Services Office, Inc.,with its permission. Page 81 of 81 Hanover Insurance Group.. W2FJ373715 5701132 WAIVER OF OUR RIGHT TO RECOVER FROM OTHERS ENDORSEMENT-CALIFORNIA We have the right to recover our payments from anyone liable for an injury covered by this policy. We will not enforce our right against the person or organization named in the Schedule. (This agreement applies only to the extent that you perform work under a written contract that requires you to obtain this agreement from us.) You must maintain payroll records accurately segregating the remuneration of your employees while engaged in the work described in the Schedule. The additional premium for this endorsement shall be 2 % of the California workers' compensation premium otherwise due on such remuneration. Schedule Person or Organization Job Description APPLIES AS BLANKET WAIVER FOR THOSE HAVING A WRITTEN CONTRACT WITH THE POLICY- HOLDER REQUIRING WOS FOR WCPOLICYHOLDER EMPLOYEES. This endorsement changes the policy to which it is attached and is effective on the date issued unless otherwise stated. (The information below is required only when this endorsement is issued subsequent to preparation of the policy.) Endorsement Effective Policy No. W2 F-J3 7 3 7 1 5-0 2 Endorsement No. Insured Insurance CompanyALLMERICA FINANCIAL BENEFIT INSURANCE Countersigned By WC 04 03 06 (Ed 04-84) 74/15/2026 (MM/DD/YYYY) A�" CERTIFICATE OF LIABILITY INSURANCE 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 of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). PRODUCER CONTACT NAME: Brlttan y Madden Culture Insurance Services, LLC PHONE FAX 1026 W El Norte Pkwy, Ste. 132 A/C No EXt: 619-346-9553 vc,No):619-324-7035 Escondido CA 92026 ADDRESS: Brittany@cultureinsurance.com INSURER(S)AFFORDING COVERAGE NAIC# INSURERA:Allmerica Financial Benefit Insurance/Hanover 41840 INSURED JPWCOMM-01 INSURERB: United Specialty Insurance Company 12537 JPW Communications, Inc. 2710 Loker Ave.,W Suite 300 INSURER C:At Bay Specialty Insurance Company 19607 Carlsbad, CA 92010 INSURER D: INSURER E: INSURER F: COVERAGES CERTIFICATE NUMBER:1297786855 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 TYPE OF INSURANCE ADDL SUBR POLICY EFF POLICY EXP LIMITS LTR I POLICY NUMBER MM/DD/YYYY MM/DDIYYYY A X COMMERCIAL GENERAL LIABILITY Y Y Z2F J373720 03 4/4/2026 4/4/2027 EACH OCCURRENCE $2,000,000 CLAIMS-MADE OCCUR DAMAGE TO RENTED PREMISES Ea occurrence $1,000,000 MED EXP(Any one person) $5,000 PERSONAL&ADV INJURY $2,000,000 GEN'L AGGREGATE LIMIT APPLIES PER: GENERAL AGGREGATE $4,000,000 POLICY PRO- JECT1:1 LOC PRODUCTS-COMP/OP AGG $Included X OTHER: HNOA Included $ A AUTOMOBILE LIABILITY Z2F J373720 03 4/4/2026 4/4/2027 COMBINED SINGLE LIMIT $1,000,000 Ea accident ANY AUTO BODILY INJURY(Per person) $ OWNED SCHEDULED BODILY INJURY(Per accident) $ AUTOS ONLY AUTOS X HIRED X NON-OWNED PROPERTY DAMAGE $ AUTOS ONLY AUTOS ONLY Per accident X HI Covrg $ A X UMBRELLALIAB X OCCUR Z2F J373720 03 4/4/2026 4/4/2027 EACH OCCURRENCE $1,000,000 EXCESS LIAB CLAIMS-MADE AGGREGATE $1,000,000 DED RETENTION$ $ A WORKERS COMPENSATION Y W2F-J373715-03 4/4/2026 4/4/2027 X PER oTH- AND EMPLOYERS'LIABILITY YIN STATUTE ER ANYPROPRIETOR/PARTNER/EXECUTIVE ❑ E.L.EACH ACCIDENT $1,000,000 OFFICER/MEMBER EXCLUDED? NIA (Mandatory in NH) E.L.DISEASE-EA EMPLOYEE $1,000,000 If yes,describe under DESCRIPTION OF OPERATIONS below E.L.DISEASE-POLICY LIMIT $1,000,000 B Professional Liability GCT-1847134-03 4/4/2026 4/4/2027 Aggregate/Each Claim 2,000,000 C Cyber Liability AB-6609930-05 4/4/2026 4/4/2027 Aggregate 2,000,000 DESCRIPTION OF OPERATIONS/LOCATIONS/VEHICLES (ACORD 101,Additional Remarks Schedule,may be attached if more space is required) City of Santa Ana,its City Council,its officers,officials,employees,agents,and volunteers are included as additional insured in regards to General Liability per the attached endorsement.Waiver of Subrogation applies to General Liability&Workers Compensation per the attached endorsements. APPROVED By Tu Tran Nguyen at 7:38 am,Apr 20,2026 CERTIFICATE HOLDER CANCELLATION SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN City of Santa Ana ACCORDANCE WITH THE POLICY PROVISIONS. Attn: City Manager's Office 20 Civic Center Plaza, M-31 AUTHORIZED REPRESENTATIVE Santa Ana CA 92701 ©1988-2015 ACORD CORPORATION. All rights reserved. ACORD 25(2016/03) The ACORD name and logo are registered marks of ACORD THIS CERTIFICATE SUPERSEDES PREVIOUSLY ISSUED CERTIFICATE Z2FJ373720 03 5701132 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. SMALL COMMERCIAL LIABILITY COMPANION ENDORSEMENT This endorsement modifies insurance provided under the following: COMMERCIAL GENERAL LIABILITY COVERAGE PART SUMMARY OF COVERAGES Page SECTION I—ADDITIONAL INSURED PROVISIONS 2 A. Automatic Additional Insured Provisions Including Primary and Non-contributory 2 4. Additional Insureds 2 a. Broad Form Vendors 3 b. Co-owner of Insured Premises 3 c. Controlling Interest 3 d. Mortgagee, Assignee, or Receiver 4 e. Grantor of Franchise 4 f. Lessor of Leased Equipment 4 g. Manager or Lessor of Premises 4 B. Additional Insured by Contract, Agreement or Permit With Completed Operations and 4 Primary and Non-contributory SECTION II—COVERAGE EXTENSIONS 5 A. Supplementary Payments Extension 5 B. Alienated Premises 5 C. Broad Form Property Damage Legal Liability 6 D. Broad Form Property Damage — Borrowed Equipment, Customers' Goods, Use of 6 Elevators E. Incidental Malpractice—Employed Nurses, EMT's and Paramedics 6 F. Personal and Advertising Injury— Broad Form 6 G. Product Recall Expense Product Recall Expense Each Occurrence Limit$25,000 6 Product Recall Expense Aggregate Limit$50,000 Product Recall Deductible $500 H. Who is an Insured Amended "Employees" Redefined 8 Subsidiaries Newly Acquired or Formed Organizations— 180 Days I. Limits of Insurance Amended: Aggregate Limits of Insurance Per Location 9 Products-Completed Operations Aggregate—Twice the Each Occurrence Limit J. Blanket Waiver of Subrogation 9 K. Unintentional Failure to Disclose Hazards 9 L. Unintentional Failure to Notify/Knowledge of an Occurrence 9 M. Medical Expenses—Three Years to Report 9 822-0001 08 19 Includes copyrighted material of the Insurance Services Office Inc.,with its permission. Page 1 of 14 Copyright 2019 The Hanover Insurance Company.All Rights Reserved. Insured Copy Z2FJ373720 03 5701132 SECTION III —ADDITIONAL CONDITIONS 9 A. Liberalization 9 B. Concealment, Misrepresentation or Fraud 10 C. Insurance Under Two or More Coverages 10 SECTION IV— EXCLUSIONS 10 A. Coverage A— Bodily Injury and Property Damage Liability and Coverage B—Personal and 10 Advertising Injury Exclusions Access Or Disclosure Of Confidential Or Personal Information And Data-related Liability 10 Aircraft Products, Grounding and Testing 10 Professional Services 11 Unmanned Aircraft 11 B. Coverage A— Bodily Injury and Property Damage and Coverage C —Medical Payments 12 Exclusions Nuclear Energy Liability 12 C. Amended Exclusion With Coverage Extension 13 Aircraft(Other Than Unmanned Aircraft), Auto or Watercraft 13 SECTION V—AMENDED DEFINITIONS 13 "Bodily Injury" 14 "Products—Completed Operations Hazard" 14 "Property Damage" 14 SECTION I—ADDITIONAL INSURED PROVISIONS e. Does not apply if the "bodily injury", A. Automatic Additional Insured Provisions "property damage" or "personal and Including Primary and Non-contributory: advertising injury" is otherwise excluded from coverage under this Coverage Part, 1. SECTION II — WHO IS AN INSURED is including any endorsements thereto. amended to include as an insured any person or organization described in paragraphs 4.a f. Does not apply to any person or through 4.g. below, whom you agree to add as organization included as an insured by an Additional Insured. another endorsement issued by us and 2. However, the insurance afforded to such made part of this Coverage Part. Additional Insured described below: 3. The most we will pay on behalf of the Additional Insured for a covered claim is the lesser of the a. Only applies to the extent permitted by law. amount of insurance: b. Will not be broader than the insurance a. Required by the applicable written contract, which you are required by the written agreement or permit, if any; or contract, agreement or permit, if any, to provide for such additional insured. b. Available under the applicable Limits of Insurance shown in the Declarations or any c. Applies on a primary basis and we will not endorsement to the policy. seek contribution from any other insurance available to the Additional Insured, if that is 4. Additional Insureds required by an applicable written contract, The following persons or organizations qualify agreement or permit. as additional insureds under this endorsement: d. Will not be broader than coverage provided to any other insured. 822-0001 08 19 Includes copyrighted material of the Insurance Services Office Inc.,with its permission. Page 2 of 14 Copyright 2019 The Hanover Insurance Company.All Rights Reserved. Insured Copy Z2FJ373720 03 5701132 The following is added to SECTION II —WHO container, part or ingredient of any IS AN INSURED: other thing or substance by or for a. Broad Form Vendors the vendor; (1) Any person or organization that is a (h) "Bodily injury" or "property vendor with whom you agreed in a damage" arising out of the sole written contract or agreement to negligence of the vendor for its include as an additional insured under own acts or omissions or those of this Coverage Part is an insured, but its employees or anyone else only with respect to liability for "bodily acting on its behalf. However, this injury"or"property damage"arising out exclusion does not apply to: of"your products"which are distributed (i) The exceptions contained or sold in the regular course of the within the exclusion in vendor's business. paragraphs (d) or(f) above; or (2) With respect to insurance afforded to (ii) Such inspections, such vendors, the following additional adjustments, tests or servicing exclusions apply: as the vendor has agreed to The insurance afforded to the vendor make or normally undertakes does not apply to: to make in the usual course of business, in connection with (a) "Bodily injury" or "property the distribution or sale of the damage" for which the vendor is products. obligated to pay damages by reasons of the assumption of (i) "Bodily injury" or "property liability in a contract or agreement. damage" arising out of an This exclusion does not apply to "occurrence"that took place before liability for damages that the you have signed the contract or insured would have in the absence agreement with the vendor. of the contract or agreement; (j) Any insured person or (b) Any express warranty organization, from whom you have unauthorized by you; acquired such products, or any ingredient, part or container, (c) Any physical or chemical change in entering into, accompanying or the product made intentionally by containing such products. the vendor; b. Co-owner of Insured Premises (d) Repackaging, unless unpacked solely for the purpose of Any person or organization who is a co- inspection, demonstration, testing, owner of premises described in the or the substitution of parts under declarations. Such person(s) or instruction from the manufacturer, organization(s) is an insured only with and then repackaged in the original respect to their liability as co-owner of the co-owned premises. container; (e) Any failure to make such c. Controlling Interest inspection, adjustments, tests or Any person or organization that has a servicing as the vendor has agreed majority controlling interest in you, but only to make or normally undertakes to with respect to their liability arising out of: make in the usual course of (1) Their financial control of you; or business in connection with the sale of the product; (2) Premises they own, maintain or control ( Demonstration, installation, while you lease or occupy these premises. servicing or repair operations, except such operations performed This insurance does not apply to structural at the vendor's premises in alterations, new construction and connection with the sale of the demolition operations performed by or for product; such additional insured. (g) Products which, after distribution d. Mortgagee, Assignee, or Receiver or sale by you, have been labeled Any mortgagee, assignee or receiver, but or relabeled or used as a only with respect to their liability as 822-0001 08 19 Includes copyrighted material of the Insurance Services Office Inc.,with its permission. Page 3 of 14 Copyright 2019 The Hanover Insurance Company.All Rights Reserved. Insured Copy Z2FJ373720 03 5701132 mortgagee, assignee, or receiver and the acts or omissions of those acting on your arising out of the ownership, maintenance behalf, but only with respect to: or use of a premises by you. a. Premises you own, rent, lease or occupy; This insurance does not apply to structural b. Your ongoing operations for the additional alterations, new construction or demolition insured(s) designated in the written operations performed by or for such contract, agreement or permit; additional insured. e. Grantor of Franchise c. "Your work" included in the "products- completed operations hazard", but only if: Any person or organization who is a grantor (1) The written contract, agreement or of a franchise to you, but only with respect permit requires you to provide such to their liability as grantor of a franchise to coverage to the additional insured; and you. (2) This Coverage Part provides coverage f. Lessor of Leased Equipment for"bodily injury" or"property damage" Any person or organization from whom you included within the "products- lease equipment is also an additional completed operations hazard". insured, but only with respect to liability for 2. The insurance afforded to such additional "bodily injury", "property damage" or insured described above: "personal and advertising injury"caused, in whole or in part, by your maintenance, a. Only applies to the extent permitted by law. operation or use of equipment leased to b. Will not be broader than the insurance you by such person or organization. which you are required by the written However, the insurance afforded to such contract, agreement or permit to provide for additional insured does not apply to any such additional insured. "occurrence" that takes place after the c. Applies on a primary basis and we will not equipment lease expires. seek contribution from any other insurance g. Manager or Lessor of Premises available to the Additional Insured, if that is Any person or organization from whom you required by the written contract, agreement or permit. lease premises is also an additional insured, but only with respect to liability d. Does not apply if the "bodily injury", arising out of the ownership, maintenance "property damage", or "personal and or use of that part of the premises leased to advertising injury" arises out of sole you. negligence of the additional insured. However, this provision does not apply to: e. Will not be broader than coverage provided (1) Any"occurrence"that takes place after to any other insured. you cease to be a tenant in the f. Does not apply if the "bodily injury", premises. "property damage" or "personal and advertising injury" is otherwise excluded (2) Structural alterations, new construction from coverage under this Coverage Part, or demolition operations performed by including any endorsements thereto. or for such additional insured(s). g. Does not apply unless the written contract B. Additional Insured by Contract, Agreement or executed or permit was nt was exe me c Permit With Completed Operations and Primary issued or agreement to the "bodily injury", "property and Non-contributory prior "personal ry ' p p y damage", or personal and advertising 1. Any person or organization who does not injury". qualify as an Additional Insured in A. h. Does not apply to any person or Automatic Additional Insured Provisions organization included as an insured by Including Primary and Non-contributory, 4. another endorsement issued by us and Additional Insureds, paragraphs a.through g. made part of this Coverage Part. above with whom you agreed in a written contract, agreement or permit to add as an i. Does not apply to any lessor of equipment additional insured on your policy is an after the equipment lease expires. additional insured only with respect to liability j. Does not apply to any: for "bodily injury", "property damage", or (1) Owners or other interests from whom "personal and advertising injury" caused, in land has been leased if the whole or in part, by your acts or omissions, or "occurrence"takes place or the offense 822-0001 08 19 Includes copyrighted material of the Insurance Services Office Inc.,with its permission. Page 4 of 14 Copyright 2019 The Hanover Insurance Company.All Rights Reserved. Insured Copy Z21FJ373720 03 5701132 is committed after the lease for the land b. Up to $2500 for cost of bail bonds required expires; or because of accidents or traffic law (2) Managers or lessors of premises if: violations arising out of the use of any vehicle to which Bodily Injury Liability (a) The "occurrence" takes place or Coverage applies. We do not have to the offense is committed after you furnish these bonds. cease to be a tenant in that premises; or c. The cost of bonds to release attachments, but only for bond amounts within our Limit (b) The "bodily injury", "property of Insurance. We do not have to furnish damage", "personal and these bonds. advertising injury" arises out of structural alterations, new con- d. All reasonable expenses incurred by the struction or demolition operations insured at our request to assist us in the performed by or on behalf of the investigation or defense of the claim or manager or lessor. "suit", including actual loss of earnings up to $500 a day because of time off from k. Does not apply to "bodily injury", "property work. damage" or "personal and advertising injury" arising out of the rendering of or the e. All court costs taxed against the insured in failure to render any professional services. the"suit". However, these payments do not include attorneys' fees or attorneys' This exclusion applies even if the claims expenses taxed against the insured. against any insured allege negligence or other wrongdoing in the supervision, hiring, f. Prejudgment interest awarded against the employment,training or monitoring of others by insured on that part of the judgment we that insured, if the "occurrence" which caused pay. If we make an offer to pay the Limit of the "bodily injury" or "property damage" or the Insurance,we will not pay any prejudgment offense which caused the "personal and interest based on that period of time after advertising injury" involved the rendering of or the offer. failure to render any professional services by or g. All interest on the full amount of any for you. judgment that accrues after entry of the 3. With respect to the insurance afforded to these judgment and before we have paid, offered additional insureds, the following is added to to pay, or deposited in court the part of the SECTION III— LIMITS OF INSURANCE: judgment that is within our Limit of Insurance. The most we will pay on behalf of the additional insured for a covered claim is the lesser of the These payments will not reduce the Limits of amount of insurance: Insurance. 1. Required by the written contract, B. Alienated Premises agreement or permit described in B. SECTION I — COVERAGES, COVERAGE A — Additional Insured by Contract, BODILY INJURY AND PROPERTY DAMAGE Agreement or Permit With Completed LIABILITY,2. Exclusions,j. Damage to Property, Operations and Primary and Non- paragraph (2) is replaced by the following: contributory, paragraph 1. or (2) Premises you sell, give away or abandon, if the 2. Available under the applicable Limits of "property damage" arises out of any part of Insurance shown in the Declarations or any those premises and occurred from hazards that endorsement to this policy. were known by you, or should have reasonably This provision shall not increase the applicable been known by you, at the time the property Limits of Insurance shown in the Declarations. was transferred or abandoned. SECTION II—COVERAGE EXTENSIONS A. Supplementary Payments Extension C. Broad Form— Property Damage Legal Liability SECTION I — COVERAGES, SUPPLEMENTARY The following is added to SECTION III -LIMITS OF PAYMENTS—COVERAGES A AND B, paragraph INSURANCE, Paragraph 6. 1. is replaced by the following: The Damages to Premises Rented to You Limit 1. We will pay, with respect to any claim we shown on the Declarations will apply to a claim investigate or settle, or any suit against an because of "property damage" to any one insured we defend: premises, while rented to you, or in the case of a. All expenses we incur. damage by fire, while rented to you or temporarily 822-0001 08 19 Includes copyrighted material of the Insurance Services Office Inc.,with its permission. Page 5 of 14 Copyright 2019 The Hanover Insurance Company.All Rights Reserved. Insured Copy Z2FJ373720 03 5701132 occupied by you with permission of the owner. If the F. Personal and Advertising Injury— Broad Form General Aggregate Limit shown on the Declarations 1. SECTION I— COVERAGES, COVERAGE B — is less than $1,000,000, for the purpose of the PERSONAL AND ADVERTISING INJURY Damages To Premises Rented to You coverage LIABILITY, 2. Exclusions, e. Contractual only, the General Aggregate Limit will be equal to Liability is deleted. the Damage to Premises Rented to You Limit shown on the Declarations. The Damage to 2. SECTION V — DEFINITIONS, 14. "Personal Premises Rented to You Limit does not and should and advertising injury", paragraph b. is not be construed to increase the General replaced by the following: Aggregate Limit except as provided in the limited b. Malicious prosecution or abuse of process. circumstance described in this paragraph. 3. The following is added to SECTION V — D. Broad Form Property Damage — Borrowed DEFINITIONS, 14. "Personal and advertising Equipment, Customers' Goods, Use of injury": Elevators "Discrimination" (unless insurance thereof is 1. The following is added to SECTION I — prohibited by law) that results in injury to the COVERAGES, COVERAGE A — BODILY feelings or reputation of a natural person, but INJURY AND PROPERTY DAMAGE only if such "discrimination" is: LIABILITY, 2. Exclusions, j. Damage to (1) Not done intentionally by or at the direction Property: of: Paragraph (4) does not apply to "property damage" to borrowed equipment while at a (a) The insured; jobsite and not being used to perform (b) Any officer of the corporation, director, operations. stockholder, partner or member of the Paragraphs (3), (4) and (6) do not apply to insured; and "property damage"to "customers' goods"while (2) Not directly or indirectly related to an on your premises. "employee", nor to the employment, Paragraphs (3), (4) and (6) do not apply to the prospective employment or termination of use of elevators. any person or persons by an insured. 2. For the purposes of this endorsement, the 4. For purposes of this endorsement,the following following definition is added to SECTION V — definition is added to SECTION V — DEFINITIONS: DEFINITIONS: 1. "Customers' goods" means property of 1. "Discrimination" means the unlawful your customer(s) on your premises for the treatment of individuals based upon race, purpose of being: color,ethnic origin,gender, religion, age, or sexual preference. "Discrimination" does a. Worked on; or not include the unlawful treatment of b. Used in your manufacturing process. individuals based upon developmental, physical, cognitive, mental, sensory or 3. The insurance afforded under this provision is emotional impairment or any combination excess over any other valid and collectible of these. property insurance (including deductible) available to the insured whether primary, 5. This coverage does not apply if liability excess, contingent or on any other basis. coverage for"personal and advertising injury"is E. Incidental Malpractice — Employed Nurses, excluded either by the provisions of the EMT's and Paramedics Coverage Form or any endorsement thereto. With respect to the COMMERCIAL GENERAL G. Product Recall Expense LIABILITY COVERAGE form, SECTION II—WHO 1. SECTION I— COVERAGES, COVERAGE A— IS AN INSURED, paragraph 2.a.(1)(d) and with BODILY INJURY AND PROPERTY DAMAGE respect to the SMALL COMMERCIAL LIABILITY LIABILITY, 2. Exclusions, n. Recall of COMPANION endorsement, SECTION IV — Products, Work or Impaired Property is EXCLUSIONS, A. Professional Services do not replaced by the following: apply to a nurse, emergency medical technician or n. Recall of Products, Work or Impaired paramedic employed by you if you are not engaged Property in the business or occupation of providing medical, Damages claimed for any loss, cost or paramedical, surgical, dental, x-ray or nursing expense incurred by you or others for the services. loss of use, withdrawal, recall, inspection, 822-0001 08 19 Includes copyrighted material of the Insurance Services Office Inc.,with its permission. Page 6 of 14 Copyright 2019 The Hanover Insurance Company.All Rights Reserved. Insured Copy Z2FJ373720 03 5701132 repair, replacement, adjustment, removal (1) Insureds; or disposal of: (2) "Covered Recalls" initiated; or (1) "Your product"; (3) Number of "your products" withdrawn (2) "Your work"; or or recalled. (3) "Impaired property"; b. The Product Recall Expense Aggregate if such product, work or property is Limit is the most we will reimburse you for withdrawn or recalled from the market or the sum of all "product recall expenses" from use by any person or organization incurred for all "covered recalls" initiated because of a known or suspected defect, during the policy period. deficiency, inadequacy or dangerous c. The Product Recall Each Occurrence Limit condition in it, but this exclusion does not is the most we will pay in connection with apply to "product recall expenses" that you any one defect or deficiency. incur for the "covered recall" of "your d. All "product recall expenses" in connection product" if the"covered recall"was initiated with substantially the same general harmful during the policy period. condition will be deemed to arise out of the However, the exception to the exclusion same defect or deficiency and considered does not apply to"product recall expenses" one "occurrence". resulting from: e. Any amount reimbursed for"product recall (4) Failure of any products to accomplish expenses" in connection with any one their intended purpose; "occurrence" will reduce the amount of the (5) Breach of warranties of fitness, quality, Product Recall Expense Aggregate Limit durability or performance; available for reimbursement of "product recall expenses" in connection with any (6) Loss of customer approval, or any cost other defect or deficiency. incurred to regain customer approval; f. If the Product Recall Expense Aggregate (7) Redistribution or replacement of "your Limit has been reduced by reimbursement product" which has been recalled by of "product recall expenses" to an amount like products or substitutes; that is less than the Product Recall (8) Caprice or whim of the insured; Expense Each Occurrence Limit, the (9) A condition likely to cause loss of which remaining Aggregate Limit is the most that any insured knew or had reason to will be available for reimbursement of know at the inception of this insurance; "product recall expenses" in connection with any other defect or deficiency. (10)Asbestos, including loss, damage or clean up resulting from asbestos or 9 Product Recall Deductible asbestos containing materials; or We will only pay for the amount of"product (11)Recall of"your products" that have no recall expenses"which are in excess of the known or suspected defect solely $500 Product Recall Deductible. The because a known or suspected defect Product Recall Deductible applies in another of"your products" has been separately to each "covered recall". The found. limits of insurance will not be reduced by the amount of this deductible. 2. The following is added to SECTION II —WHO IS AN INSURED, paragraph 3.b.: We may, or will if required by law, pay all or expense" arising out of an any part of any deductible amount, if "Product recall ex p g y applicable. Upon notice of our payment of withdrawal or recall that occurred before you a deductible amount, you shall promptly acquired or formed the organization. reimburse us for the part of the deductible 3. The following is added to SECTION III — amount we paid. LIMITS OF INSURANCE: The Product Recall Expense Limits of Product Recall Expense Limits of Insurance Insurance apply separately to each a. The Limits of Insurance shown in the consecutive annual period and to any SUMMARY OF COVERAGES of this remaining period of less than 12 months, endorsement and the rules stated below fix starting with the beginning of the policy period the most that we will pay under this Product shown in the Declarations, unless the policy Recall Expense coverage regardless of the period is extended after issuance for an number of: additional period of less than 12 months. In that 822-0001 08 19 Includes copyrighted material of the Insurance Services Office Inc.,with its permission. Page 7 of 14 Copyright 2019 The Hanover Insurance Company.All Rights Reserved. Insured Copy Z2FJ373720 03 5701132 case, the additional period will be deemed part (6) Expenses to rent additional of the last preceding period for the purposes of warehouse or storage space; determining the Limits of Insurance. (7) Disposal of"your product", but only 4. The following is added to SECTION IV — to the extent that specific methods COMMERCIAL GENERAL LIABILITY of destruction other than those CONDITIONS, 2. Duties in the Event of employed for trash discarding or Occurrence, Offense, Claim or Suit: disposal are required to avoid You must see to it that the following are done in "bodily injury" or "property the event of an actual or anticipated "covered damage" as a result of such recall" that may result in "product recall disposal, expense": you incur exclusively for the purpose of (1) Give us prompt notice of any discovery or recalling "your product"; and notification that "your product" must be b. Your lost profit resulting from such withdrawn or recalled. Include a description "covered recall". of "your product" and the reason for the 6. This Product Recall Expense Coverage does withdrawal or recall; not apply: (2) Cease any further release, shipment, a. If the "products — completed operations consignment or any other method of hazard" is excluded from coverage under distribution of like or similar products until it this Coverage Part including any has been determined that all such products endorsement thereto; or are free from defects that could be a cause of loss under this insurance. b. To "product recall expense" arising out of 5. For the purpose of this endorsement, the any of "your products" that are otherwise excluded from coverage under this following definitions are added to SECTION V— DEFINITIONS: Coverage Part including endorsements. H. Who is an Insured Amended 1. "Covered recall" means a recall or withdrawal made necessary because you 1. SECTION II — WHO IS AN INSURED, or a government body has determined that paragraph 2.a.(1)(d) is replaced by the a known or suspected defect, deficiency, following: inadequacy, or dangerous condition in (d) Arising out of his or her providing or failing "your product"has resulted or is reasonably to provide professional services. expected to result in "bodily injury" or 2. Insured Employee Extension "property damage". The following is added to SECTION II — WHO 2. "Product recall expense(s)" means: IS AN INSURED, paragraph 2.a.(1)(a): a. Necessary and reasonable expenses With respect to "bodily injury" only, the for: limitations above do not apply to your (1) Communications, including radio "employees" as insureds with respect to or television announcements or damages caused by cardiopulmonary printed advertisements including resuscitation or first aid services administered stationary, envelopes and by such an "employee". postage; 3. Who is an Insured—Subsidiaries (2) Shipping the recalled products The following is added to SECTION II — WHO from any purchaser, distributor or IS AN INSURED: user to the place or places designated by you; Subsidiaries (3) Remuneration paid to your regular Any of your subsidiaries, other than a "employees" for necessary partnership or joint venture, that is not shown overtime; as a Named Insured in the Declarations is a (4) Hiring additional persons, other Named Insured if: than your regular"employees"; a. You maintain an ownership interest of more (5) Expenses incurred by"employees" than 50% in such subsidiary on the first day of the policy period; and including transportation and accommodations; b. Such subsidiary is not an insured under similar other insurance. 822-0001 08 19 Includes copyrighted material of the Insurance Services Office Inc.,with its permission. Page 8 of 14 Copyright 2019 The Hanover Insurance Company.All Rights Reserved. Insured Copy Z2FJ373720 03 5701132 No such subsidiary is an insured for "bodily existing as of the inception date of the policy injury" or "property damage" that occurred, or provided such failure is not intentional. "personal and advertising injury" caused by an L. Unintentional Failure to Notify/Knowledge of an offense committed: Occurrence c. Before you maintained an ownership The following is added to SECTION IV — interest or more than 50% in such COMMERCIAL GENERAL LIABILITY subsidiary; or CONDITIONS, 2. Duties in the Event of d. After the date, if any, during the policy Occurrence, Offense, Claim or Suit, paragraph period that you no longer maintain an a.: ownership interest of more than 50% in Your rights afforded under this Coverage Part shall such subsidiary. not be prejudiced if you fail to give us notice of an 4. Newly Acquired or Formed Organizations — "occurrence", offense, claim or "suit', solely due to 180 Days your reasonable and documented belief that the SECTION II — WHO IS AN INSURED, "bodily injury", "property damage" or"personal and paragraph 3.a. is replaced by the following: advertising injury" is not covered under this a. Coverage under this provision is afforded Coverage Part. only until the 1801h day after you acquire or Knowledge of an "occurrence" or offense by an form the organization or the end of the agent or "employee" of the insured will not policy period, whichever is earlier. constitute knowledge by the insured, unless an "executive officer" of the insured knows about such I. Limits of Insurance Amended "occurrence" or offense. Failure of an agent or General Aggregate Limits of Insurance Per "employee"of the insured, other than an "executive Location officer" of the insured, to notify us of an The following is added to SECTION III—LIMITS OF "occurrence" or offense that such person knows INSURANCE: about will not affect the insurance afforded to you. The General Aggregate Limits of Insurance apply M. Medical Payments —Three Years to Report separately to each of your "locations" owned by or SECTION I — COVERAGES, COVERAGE C — rented to you. "Location" means premises involving MEDICAL PAYMENTS, 1. Insuring Agreement, the same or connecting lots, or premises whose paragraph a.(3)(b) is replaced by the following: connection is interrupted only by a street, roadway, (b) The expenses are incurred and reported to us waterway or right-of-way of a railroad. within three years of the date of the accident; J. Blanket Waiver of Subrogation and The following is added to SECTION IV — SECTION III —ADDITIONAL CONDITIONS COMMERCIAL GENERAL LIABILITY The following are added to SECTION IV — CONDITIONS, 8. Transfer of Rights of Recovery COMMERCIAL GENERAL LIABILITY CONDITIONS: Against Others to Us: A. Liberalization We waive any right of recovery we may have against any person or organization with whom you If,within 45 days prior to or during the policy period, have a written contract, agreement or permit to we adopt any revision that would broaden the waive any rights of recovery against such person or coverage under this policy without additional organization because of payments we make for premium, the broadened coverage will immediately injury or damage arising out of your ongoing apply to this policy. operations or "your work" done under a contract B. Concealment, Misrepresentation or Fraud with that person or organization and included in the This policy is void in any case of fraud by you as it "products-completed operations hazard". relates to this policy at any time. It is also void if you This condition does not apply to Medical Expenses or any other insured, at any time, intentionally Coverage. conceal or misrepresent a material fact concerning: K. Unintentional Failure to Disclose Hazards 1. This policy; SECTION IV — COMMERCIAL GENERAL 2. The Covered Property; LIABILITY CONDITIONS, 6. Representations is 3. Your interest in the Covered Property; or replaced by the following: 4. A claim under this policy. 6. Representations C. Insurance Under Two or More Coverages We will not disclaim coverage under this Coverage Part if you fail to disclose all hazards 822-0001 08 19 Includes copyrighted material of the Insurance Services Office Inc.,with its permission. Page 9 of 14 Copyright 2019 The Hanover Insurance Company.All Rights Reserved. Insured Copy Z2FJ373720 03 5701132 It is our stated intent that the various Coverage ROMs,tapes,drives, cells,data processing devices Parts, forms, endorsements or policies issued to or any other repositories of computer software the named insured by us, or any company affiliated which are used with electronically controlled with us, do not provide any duplication or overlap of equipment. The term computer programs, referred coverage for the same claim, "suit", "occurrence", to in the foregoing description of electronic data, offense, accident, "wrongful act"or loss. We will not means a set of related electronic instructions which pay more than the actual amount of the loss or direct the operations and functions of a computer or damage. device connected to it, which enable the computer If this Coverage Part and any other Coverage Part, or device to receive, process,store, retrieve or send form, endorsement or policy issued to the named data. insured by us, or any company affiliated with us, Aircraft Products, Grounding and Testing apply to the same claim,"suit",occurrence,offense, (1) "Bodily injury", "property damage" or "personal accident, "wrongful act"or loss, the maximum Limit and advertising injury" arising out of: of Insurance under all such Coverage Parts, forms, endorsements or policies combined shall not (a) "Aircraft products" or reliance upon any exceed the highest applicable Limit of Insurance representation or warranty made with such under any one Coverage Part, form, endorsement product; or policy. (b) The "grounding" of any aircraft; or This condition does not apply to any Excess or (c) The "testing" of any aircraft. Umbrella Policy issued by us specifically to apply (2) For purposes of this Exclusion, the following as excess insurance over this policy. definitions apply: pp Y: SECTION IV— EXCLUSIONS (a) "Aircraft Products" means: A. The following are added to SECTION I — (i) Aircraft, including but not limited to COVERAGES, COVERAGE A—BODILY INJURY missiles, spacecraft, or any other AND PROPERTY DAMAGE LIABILITY, 2. aircraft goods or products you Exclusions and SECTION I — COVERAGES, manufacture, sell, handle or distribute; COVERAGE B — PERSONAL AND ADVERTISING INJURY, 2. Exclusions: (ii) Aircraft and any ground support or Access Or Disclosure Of Confidential Or control equipment used in connection Personal Information And Data-related Liability therewith; Damages arising out of: (iii) Any product provided by the insured and installed or used in connection with (1) Any access to or disclosure of any person's or any aircraft; organization's confidential or personal (iv) Any tooling used in respect to any information, including patents, trade secrets, aircraft; processing methods, customer lists, financial information, credit card information, health (v) Training and navigational aids, information or any other type of nonpublic instructions, manuals, blueprints, information; or engineering or other data in connection (2) The loss of, loss of use of, damage to, with any aircraft; corruption of, inability to access, or inability to (vi)Any advice, service or labor supplied manipulate electronic data. with any aircraft; or This exclusion applies even if damages are claimed (vii)Services you or others trading under for notification costs, credit monitoring expenses, your name provide or recommend for forensic expenses, public relations expenses or any use in the manufacture, repair, other loss, cost or expense incurred by you or operation, maintenance or use of any others arising out of that which is described in aircraft. paragraphs (1) or(2) above. (b) "Grounding" means the withdrawal of one However, unless paragraph (1) above applies, this or more aircraft from flight operations or the exclusion does not apply to damages because of imposition of speed, passenger or load "bodily injury". restrictions on such aircraft, due to the existence of or alleged or suspected As used in this exclusion, electronic data means existence of any defect, fault or condition: information, facts or computer programs stored as or on, created or used on, or transmitted to or from (i) In such aircraft or any part sold, computer software including systems and handled or distributed by you or that is applications software), on hard or floppy disks, CD- manufactured, assembled or 822-0001 08 19 Includes copyrighted material of the Insurance Services Office Inc.,with its permission. Page 10 of 14 Copyright 2019 The Hanover Insurance Company.All Rights Reserved. Insured Copy Z2FJ373720 03 5701132 processed by any other person or (9) Optometry or optical or hearing aid services organization according to your including the prescribing, preparation, fitting, specifications, plans, suggestions, demonstration or distribution of ophthalmic orders or drawings; or lenses and similar products or hearing aid (ii) With tools, machinery or other devices; equipment furnished to such persons (10) Services in the practice of pharmacy; or organizations by you; (11) Management, Human Resource, Testing, whether such withdrawn aircraft are owned Media or Public Relations consulting services. or operated by the same or different This exclusion applies even if a claim alleges persons or organizations. negligence or other wrongdoing in the supervision, "Grounding"shall be deemed to commence hiring, employment, training or monitoring of others on the date of an "occurrence" which by an insured, if the"occurrence"which caused the discloses the necessity of"grounding"or on "bodily injury" or "property damage", or the offense the date an aircraft is first withdrawn from which caused the "personal and advertising injury", service because of such condition, involved the rendering of or failure to render any whichever comes first. professional service. (c) "Testing" means examination, observation, Unmanned Aircraft evaluation or measuring of the 1 "Bodilyinjury", "property "personal performance of "aircraft products", while ( ) y ' p p y damage"g " or and advertising injury" arising out of the either in the air or on the ground. ownership, maintenance, use or entrustment to Professional Services others of any aircraft that is an "unmanned "Bodily injury", "property damage", or"personal and aircraft". Use includes operation and "loading advertising injury" caused by the rendering of or and unloading". failure to render any professional service, advice or This paragraph applies even if the claims against instruction: any insured allege negligence or other wrongdoing (1) By any insured; or in the supervision, hiring, employment, training or monitoring of others by that insured, if the (2) On behalf of any insured; or "occurrence" which caused the "bodily injury" or (3) From whom any insured assumed liability by "property damage" or the offense which caused the reason of a contract or agreement, "personal and advertising injury" involved the regardless of whether any such service, advice or ownership, maintenance, use or entrustment to instruction is ordinary to any insured's profession. others of any aircraft that is an "unmanned aircraft". Professional services include but are not limited to: This paragraph does not apply to: (4) Legal, accounting or advertising services, (a) The use of another's advertising idea in your notary, title abstract, tax preparation, real "advertisement"; or estate, stockbroker, publishing, architects or (b) Infringing upon another's copyright,trade dress insurance services; or slogan in your"advertisement". (5) Preparing, approving, or failing to prepare or (2) For purposes of this endorsement,the following approve maps, drawings, opinions, reports, is added to SECTION V— DEFINITIONS: surveys, change orders, designs or "Unmanned aircraft" means an aircraft that is specifications; not: (6) Supervisory, inspection or engineering (a) Designed; services; (b) Manufactured; or (7) Any medical, surgical, dental, x-ray, nursing, health or therapeutic services, treatment, (c) Modified after manufacture; advice or instruction including, but not limited to be controlled directly by a person from within to, the prescribing, furnishing or dispensing of or on the aircraft. drugs; B. The following is added to SECTION I — (8) Any service, treatment, advice or instruction for COVERAGES, COVERAGE A—BODILY INJURY the purpose of appearance or skin AND PROPERTY DAMAGE LIABILITY, 2. enhancement, hair removal or replacement or Exclusions and SECTION I — COVERAGES, personal grooming, including body piercing COVERAGE C — MEDICAL PAYMENTS, 2. services or use or exposure to any sun lamp, Exclusions: tanning booth or other similar appliance; Nuclear Energy Liability 822-0001 08 19 Includes copyrighted material of the Insurance Services Office Inc.,with its permission. Page 11 of 14 Copyright 2019 The Hanover Insurance Company.All Rights Reserved. Insured Copy Z2FJ373720 03 5701132 (1) "Bodily injury" or"property damage": Canada, this Exclusion (3) applies only to (a) With respect to which an insured under the "property damage"to such "nuclear facility" policy is also an insured under a nuclear and any property thereat. energy liability policy issued by the Nuclear (4) As used in this exclusion: Energy Liability Insurance Association, (a) "By-product material" has the meaning Mutual Atomic Energy Liability given it in the Atomic Energy Act of 1954 or Underwriters or Nuclear Insurance in any law amendatory thereof; Association of Canada, or would be an insured under any such policy but for its (b) "Hazardous properties" include termination upon exhaustion of its limit of radioactive, toxic or explosive properties; liability; or (c) "Nuclear facility" means: (b) Resulting from the "hazardous properties" (i) Any"nuclear reactor"; of "nuclear material" and with respect to (ii) Any equipment or device designed or which: used for: (1) Any person or organization is required 1) Separating the isotopes of uranium to maintain financial protection pursuant to the Atomic Energy Act of or plutonium; 1954, or any law amendatory thereof; 2) Processing or utilizing "spent fuel"; or or (ii) The insured is, or had this policy not 3) Handling, processing or packaging been issued would be, entitled to "waste"; indemnity from the United States of (iii) Any equipment or device used for the America, or any agency thereof, under processing, fabricating or alloying of any agreement entered into by the "special nuclear material" if at any time United States of America, or any the total amount of such material in the agency thereof, with any person or custody of the insured at the premises organization. where such equipment or device is (2) Under COVERAGE C — MEDICAL located consists of or contains more PAYMENTS,expenses incurred with respect to than 25 grams of plutonium or uranium "bodily injury" resulting from the "hazardous 233 or any combination thereof, or properties"of"nuclear material" and arising out more than 250 grams of uranium 235; of the operation of a "nuclear facility" by any (iv) Any structure, basin, excavation, person or organization. premises or place prepared or used for (3) "Bodily injury" or "property damage" resulting the storage or disposal of"waste"; from the "hazardous properties" of the "nuclear and includes the site on which any of the material"; if: foregoing is located, all operations (a) The "nuclear material": conducted on such site and all premises (1) Is at any"nuclear facility" owned by, or used for such operations; operated by or on behalf of, an insured; (d) "Nuclear material" means "source or material", "special nuclear material" or"by- (ii) Has been discharged or dispersed product material";' therefrom; (e) Nuclear reactor means any apparatus (b) The "nuclear material" is contained in designed or used to sustain nuclear fission in a self-supporting chain reaction or to spent fuel or waste at any time contain a critical mass of fissionable possessed, handled, used, processed, material; stored, transported or disposed of by or on behalf of an insured; or (f) "Property damage" includes all forms of (c) The "bodily injury" or "property damage" arises out of the furnishing by an insured of (g) radioactive contamination of property. "Source material" has the meaning given it services, materials, parts or equipment in in the Atomic Energy Act of 1954 or in any connection with the planning, construction, law amendatory thereof; maintenance, operation or use of any (h) "Special nuclear material" has the meaning "nuclear facility"; but if such facility is given it in the Atomic Energy Act of 1954 or located within the United States of in any law amendatory thereof; America, its territories or possessions or 822-0001 08 19 Includes copyrighted material of the Insurance Services Office Inc.,with its permission. Page 12 of 14 Copyright 2019 The Hanover Insurance Company.All Rights Reserved. Insured Copy Z2FJ373720 03 5701132 (1) "Spent fuel"means any fuel element or fuel or use of aircraft (other than "unmanned- component, solid or liquid, which has been aircraft") or watercraft; or used or exposed to radiation in a "nuclear (e) "Bodily injury"or"property damage"arising reactor"; out of: (j) "Waste" means any waste material: (1) The operation of machinery or (1) Containing "by-product material" other equipment that is attached to, or part than the tailings or wastes produced by of, a land vehicle that would qualify the extraction or concentration of under the definition of "mobile uranium or thorium from any ore equipment" if it were not subject to a processed primarily for its "source compulsory or financial responsibility material" content; and law or other motor vehicle insurance or (ii) Resulting from the operation by any motor vehicle registration law where it person or organization of any "nuclear is licensed or principally garaged; or facility" included under paragraphs (1) (ii) The operation of any of the following and (ii) of the definition of "nuclear machinery or equipment: facility". 1) Cherry pickers and similar devices C. Amended Exclusion With Coverage Extension mounted on automobile or truck SECTION I — COVERAGES, COVERAGE A — chassis and used to raise or lower BODILY INJURY AND PROPERTY DAMAGE workers; and LIABILITY, 2. Exclusions, g. Aircraft, Auto or 2) Air compressors, pumps and Watercraft is replaced by the following: generators, including spraying, g. Aircraft (Other Than Unmanned Aircraft), welding, building cleaning, Auto or Watercraft geophysical exploration, lighting "Bodily injury" or"property damage" arising out and well-servicing equipment; or of the ownership, maintenance, use or (f) An aircraft(other than "unmanned aircraft") entrustment to others of any aircraft(other than that is: "unmanned aircraft"), "auto" or watercraft (i) Chartered by, loaned to, or hired by owned or operated by or rented or loaned to you with a paid crew; and any insured. Use includes operation and (ii) Not owned by any insured. "loading or unloading". SECTION V—AMENDED DEFINITIONS This paragraph g. applies even if the claims against any insured allege negligence or other A. SECTION V—DEFINITIONS, 3. "Bodily injury", 16. wrongdoing in the supervision, hiring, "Products—completed operations hazard", and 17. employment,training or monitoring of others by "Property damage" are replaced by the following: that insured, if the "occurrence" which caused 3. "Bodily injury" means bodily injury, sickness or the "bodily injury" or "property damage" disease sustained by a person, including death involved the ownership, maintenance, use or resulting from any of these at any time. "Bodily entrustment to others of any aircraft(other than injury" includes mental anguish or other mental "unmanned aircraft"),"auto"or watercraft that is injury resulting from "bodily injury". owned or operated by or rented or loaned to 16. "Products— completed operations hazard": any insured. This paragraph g. does not apply to: a. Includes all "bodily injury" and "property damage" occurring away from premises (a) A watercraft while ashore on premises you you own or rent and arising out of "your own or rent; product" or "your work"except: (b) A watercraft you do not own that is: (1) Products that are still in your physical (1) Less than 51 feet long; and possession; or (ii) Not being used to carry persons or (2) Work that has not yet been completed property for a charge; or abandoned. However, "your work" (c) Parking an "auto" on, or on the ways next will be deemed completed at the earliest of the following times: to, premises you own or rent, provided the "auto" is not owned by or rented or loaned (a) When all of the work called for in to you or the insured; your contract has been completed. (d) Liability assumed under any "insured (b) When all of the work to be done at contract" for the ownership, maintenance the job site has been completed if 822-0001 08 19 Includes copyrighted material of the Insurance Services Office Inc.,with its permission. Page 13 of 14 Copyright 2019 The Hanover Insurance Company.All Rights Reserved. Insured Copy Z2FJ373720 03 5701132 your contract calls for work at more unloading" of that vehicle by any than one job site. insured; or (c) When that part of the work done at (2) The existence of tools, uninstalled the job site has been put to its equipment or abandoned or unused intended use by any other person materials. or organization other than another 17. "Property damage" means: contractor or subcontractor working on the same project. a. Physical injury to tangible property, including all resulting loss of use of that Work that may need service, property. All such loss of use shall be maintenance, correction, repair or deemed to occur at the time of the physical replacement, but which is otherwise injury that caused it; or complete,will be treated as completed. b. Loss of use of tangible property that is not The bodily injury or property physically injured.All such loss of use shall damage" must occur away from be deemed to occur at the time of the premises you own or rent, unless your "occurrence"that caused it. business includes the selling, handling or distribution of "your product" for For the purposes of this insurance, electronic consumption on premises you own or data is not tangible property. rent. As used in this definition,electronic data means b. Does not include"bodily injury"or"property information, facts or programs stored as, damage" arising out of: created or used on, or transmitted to or from computer software, including systems and (1) The transportation of property, unless applications software, hard or floppy disks, CD- the injury or damage arises out of a ROMs, tapes, drives, cells, data processing CD- condition in or on a vehicle not owned devices or any other media which are used with or operated by you, and that condition electronically controlled equipment. was created by the "loading or ALL OTHER TERMS, CONDITIONS, AND EXCLUSIONS REMAIN UNCHANGED. 822-0001 08 19 Includes copyrighted material of the Insurance Services Office Inc.,with its permission. Page 14 of 14 Copyright 2019 The Hanover Insurance Company.All Rights Reserved. Insured Copy T"o� Hanover Insurance Group- W2FJ373715 5701132 WAIVER OF OUR RIGHT TO RECOVER FROM OTHERS ENDORSEMENT-CALIFORNIA We have the right to recover our payments from anyone liable for an injury covered by this policy. We will not enforce our right against the person or organization named in the Schedule. (This agreement applies only to the extent that you perform work under a written contract that requires you to obtain this agreement from us.) You must maintain payroll records accurately segregating the remuneration of your employees while engaged in the work described in the Schedule. The additional premium for this endorsement shall be 2 % of the California workers'compensation premium otherwise due on such remuneration. Schedule Person or Organization Job Description APPLIES AS BLANKET WAIVER FOR THOSE HAVING A WRITTEN CONTRACT WITH THE POLICY- HOLDER REQUIRING WOS FOR WC POLICYHOLDER EMPLOYEES . This endorsement changes the policy to which it is attached and is effective on the date issued unless otherwise stated. (The information below is required only when this endorsement is issued subsequent to preparation of the policy.) Endorsement Effective Policy No. W2F-J373715-03 Endorsement No. Insured Insurance Company ALLMERICA FINANCIAL BENEFIT INSURANCE Countersigned ByBOA _ WC 04 03 06(Ed 04-84) 002787 0035 of 0044