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Home My WebLink AboutLINEAR SYSTEMS 3 -20141NbUE;6titd,i pi .L A- 2014 -237 W014tt WY rn(,IICIi�P UN [IL IN UhANGF FkPZ ; cf.�il!ctl�G «uNr,�t - .R_�..__...�.. L, -trh 1- -7 - 1 MAINTENANCE AND SUPPOR'I',AGREU,,i4EU THIS MAINTENANCE AND SUPPORT AGREEMENT, made and entered into this 7th (lay of October, 2014 by and between Linear Systems (hereinafter "Contractor "), and the City of Santa Ana, a charter city and municipal corporation organized and existing under the Constitution and laws of the State of California (hereinafter "City "), RECITALS A. The City desires to retain a Contractor having special skill and knowledge in the field of providing maintenance to and support as necessary for the Police Department's digital imaging management system (DIMS) which maintains all photograph, video and audio evidence for the Police Department. B. Contractor represents that Contractor is able and willing to provide such services to the city. C. Contractor has provided maintenance and support for the DIMS system since it was originally purchased in 2004. NOW THEREFORE, in consideration of the mutual and respective promises, and subject to the terms and conditions hereinafter set forth, the parties agree as follows: 1. SCOPE OF SERVICES Contractor shall provide maintenance and support as needed to the DIMS system as outlined in the attached Exhibit "A ". This shall include a one year warranty for enhanced digital acquisition station, image server, forensic services field personnel kits, and two forensic services lab kits. It shall also include on -site maintenance and support for the data base case management rack server, PDD library and digital output devices. 2. COMPENSATION a. City agrees to pay, and Contractor agrees to accept as total payment for its services, the rates and charges identified in Exhibit A. The total sum to be expended under this Agreement shall not exceed $90,000,00 over the term of this Agreement. This includes a $10,000 contingency for unanticipated system modifications. b. Payment by City shall be made within thirty (30) days following receipt of proper invoice evidencing work performed, subject to City accounting procedures. 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 term of this Agreement shall be for a three year (3) year period commencing on July t, 2014 and terminating on June 30, 2017, unless terminated earlier in accordance with Section 12 of this Agreement. 4. INDEPENDENT CON'T'RACTOR Contractor shall, during the entire term of this Agreement, be construed to be an independent contractor and not an employee of the City. This Agreement is not intended nor shall it be construed to create an employer- ornployee relationship, a joint venture relationship, or to allow the City to exercise discretion or control over the professional manner in which Contractor performs the services which are the subject matter of this Agreement; however, the services to be provided by Contractor shall be provided in a manner consistent with all applicable standards and regulations governing such services. Contractor shall pay all salaries and wages, employer's social security taxes, unemployment insurance and similar taxes relating to employees and shall be responsible for all applicable withholding taxes. S. INSURANCE Prior to undertaking performance of work under this Agreement, Contractor shall maintain and shall require its subcontractors, if any, to obtain and maintain insurance as described below: a. Commercial General Liability Insurance. Contractor shall maintain commercial general liability insurance naming the City, its officers, employees, agents, volunteers and representatives as additional insurcd(s) and shall include, but not be limited to protection against claims arising from bodily and personal injury, including death resulting therefrom and damage to property, resulting from any act or occurrence arising out of Contractor's operations in the performance of this Agreement, including, without limitation, acts involving vehicles. The amounts of insurance shall be not less than the following: single limit coverage applying to bodily and personal injury, including death resulting therefrom, and property damage, in the total amount of $1,000,000 per occurrence. Contractor shall supply City with a fully executed additional insured endorsement in substantially the form attached hereto as Exhibit C upon execution of this Agreement and shall be approved in form by the City Attorney. b. Worker's Compensation Insurance. In accordance with the provisions of Section 3300 of the Labor Code, Contractor, if Contractor has any employees, is required to be insured against liability for worker's compensation or to undertake self-insurance, Prior to commencing the performance of the work under this Agreement, Contractor agrees to obtain and maintain any employer's liability insurance with limits not less than $1,000,000 per accident. c. The 'following requirements apply to the insurance to be provided by Contractor pursuant to this section; (i) Contractor shall maintain all insurance required above in full force and effect for the entire period covered by this Agreement. (u) Certificates of insurance shall be furnished to the City upon execution of this Agreement and shall be approved in form by the City Attorney. (iii) Certificates and policies shall state that the policies shall not be canceled or reduced in coverage or changed in any other material aspect without thirty (30) clays prior written notice to the City. d. If Contractor fails or refuses to produce or maintain the insurance required by this section or fails or refuses to furnish the City with required proof that insurance has been procured and is in force and paid for, the City shall have the right, at the City's election, to forthwith terminate this Agreement. Such termination shall not effect Contractor's right to be paid for its time and materials expended prior to notification of termination. Contractor waives the right to receive compensation and agrees to indemnify the City for any work performed prior to approval of insurance by the City. 6. INDEMNIFICATION Contractor agrees to and shall indemnify and hold harmless the City, its officers, agents, employees, Contractors, special counsel, and representatives from liability, (t) for personal injury, damages, just compensation, restitution, judicial or equitable relief arising out of claims for personal injury, including health, and claims for property damage, which may arise from the direct or indirect operations of the Contractor or its contractors, subcontractors, agents, employees, or other persons acting on their behalf which relates to the services described in section I 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 terns of, or effects, arising from this Agreement. The Contractor further agrees to indemnify, hold harmless, and pay all costs for the defense of the City, including fees and costs for special counsel to be selected by the City, regarding any action by a third party challenging the validity of this Agreement, or asserting that personal injury, damages, just compensation, restitution, judicial or equitable relief due to personal or property rights arises by reason of the terns of, or effects arising from this Agreement. City may make all reasonable decisions with respect to its representation in any legal proceeding. 7. CONFIDENTIALITY If Contractor receives from the City information which due to the nature of such information is reasonably understood to be confidential and /or proprietary, Contractor agrees that it shall not use or disclose such information except in the performance of this Agreement, and further agrees to exercise the santc degree of care it uses to protect its own information of like importance, but in no event less than reasonable care. "Confidential Information" shall include all nonpublic information. Confidential information includes not only written information, but also information transferred orally, visually, electronically, or by other means. Confidential information disclosed to either party by any subsidiary and /or agent of the other party is covered by this Agreement. The foregoing obligations of non -use and nondisclosure shall not apply to any information that (a) has been disclosed in publicly available sources; (b) is, through no fault of the Contractor disclosed in a publicly available source; (c) is in rightful possession of the Contractor without an obligation of confidentiality; (d) is required to be disclosed by operation of law; or (e) is independently developed by the Contractor without reference to information disclosed by the City. 8. CONFLICT OF INTEREST CLAUSE Contractor covenants that it presently has no interests and shall not acquire any interests, direct or indirect, which would conflict in any manner with performance of services specified under this Agreement. No persons having such interest shall be employed by or associated with Contractor. 9. 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 telefacsimile or other telegraphic communication in the manner provided in this Section, to the following persons: To City: Clerk of the City Council City of Santa Ana 20 Civic Center Plaza (M -30) P.O. Box 1988 Santa Ana, CA 92702 -1938 Fax (714) 647 -6956 With courtesy copies to: Chief of Police, Santa Ana Police Department City of Santa Ana 60 Civic Center Plaza (M -97) P.Q. Box 1988 Santa Ana, California 92702 Fax (714) 245 -8007 And City Attorney City or Santa Ana 20 Civic Center Plaza (M -29) P.O. Box 1988 Santa. Ana, California 92702 Fax (714) 647 -6515 To Contractor: Linear Systems 8403 Maple Place Rancho Cucamonga, California 91730 Fax (909) 899 -4346 A party may change its address by giving notice in writing to the other party. Thereafter, any communication shrill be addressed and transmitted to the new address, If sent by mail, any 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 telefacsimile, 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. 10. EXCLUSIVITY AND AMENDMENT This Agreement represents the complete and exclusive statement between the City and Contractor, and supersedes any and all other agreements, oral or written, between the parties. In the event of a conflict between the terms of this Agreement and any attachments hereto, the terms of this Agreement shall prevail. This Agreement may not be modified except by written instrument signed by the City and by an authorized representative of Contractor, The parties agree that any terms or conditions of any purchase order or other instrument that are inconsistent with, or in addition to, the terms and conditions hereof, shall not bind or obligate Contractor or the City. Each party to this Agreement acknowledges that no representations, inducements, promises or agreements, orally or otherwise, have been made by any party, or anyone acting on behalf of any party, which is not embodied herein. 11. ASSIGNMENT Inasmuch as this Agreement is intended to secure the specialized services of Contractor, Contractor may not assign, transfer, delegate, or subcontract any interest herein without the prior written consent of the City and any such assignment, transfer, delegation or subcontract without the City's prior written consent shall be considered null and void. Nothing in this Agreement shall be construed to limit the City's ability to have any of the services which are the subject to this Agreement performed by City personnel or by other Contractors retained by City. 12. TERdIINATION This Agreement may be terminated by the City with thirty (30) days written notice. In such event, Consultant shall be entitled to receive uid 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 Police Chief may require Consultant to deliver to the City all work product 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. 13. DISCRIMINATION Contractor shall not discriminate because of race, color, creed, religion, sex, marital status, sexual orientation, age, national origin, ancestry, or disability, as defined and prohibited by applicable law, in the recruitment, selection, training, utilization, promotion, termination or other employment related activities, Contractor affirms that it is an equal opportunity employer and shall comply with all applicable federal, state and local laws and regulations. 14. JURISDICTION - VENUE This Agreement and all questions relating to its validity, interpretation, performance, and enforcement shall be governed and construed in accordance with the laws of the State of California. 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. 15. COMPLIANCE WITH GOVERNMENTAL REQUIREMENTS Contractor shall carry out all services pursuant to this Agreement in substantial conformity with all applicable laws, ordinances, statutes, codes, rules, regulations, orders, and decrees of the United States, the State of California, the County of Orange, the City, and of any other political subdivision, agency, or instrumentality exercising jurisdiction over the City. 16. MISCELLANEOUS PROVISIONS a. Each Undersigned represents and warrants that its signature herembelow has the power, authority and right to bind their respective parties to each of the terms of this Agreement, and shall indemnify City Billy, including reasonable costs and attorney's fees, for any injuries or damages to City in the event that such authority or power is riot, in fact, held by the signatory or is withdrawn. b. All Exhibits referenced heroin and attached hereto shall be incorporated ,Is 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: � q/ -V ® V MARIA HITIZAR Clerk of the Council APPROVED AS TO FORM: SONIA R. CARVALHO City Attorney By: Laura A. Rossini Senior Assistant City Attorney RECOM1L,bIENDED FOR APPROVAL: Carlos Rojas Chief of Police CITY OF SANTA ANA 1 DAVID CAVAZOS City Manager CONTRACTOR LINEAR SYSTEMS j�p i�z z- ( ame) CJI"� �{J_�._.,. Tax. ID # _ `76% 7 KXHIBCT A LINEAR SYSTEMS 8403 MaplePlace Rancho Cucamonga, CA, 91730 909899.4346 909.8994346 FAX BILL TO City or'Saitm Ana Purchasing Division NW6 20 Civic Center Plaza Rut 429 Santa Ana, CA 92701 Sharon [[oil (7141647,5467 SHIP TO Sanm Ann PD _ Photo Lab 60 Civic Center Plaza Santa Ana, CA. 92702 Aar Ileallier Holder Account# SAN8471 P.O. # INVOICE DATE INVOICE# 611. /201 -I T 201499/1 20% restocking fee on all retuned merchandise 50 % restocking lee on special orders or rat product returned without all original packing materials No mums on solhrure All products will ba considered shipped complete and undamaged unless Linear is notified otherwise within 48 hours No returns withorn a RNIA 8 issued by Linear All products carr y % manufacturers uonaray only eadoss specified in writing. All additional service contracts (Preferred Customer Program) must be listed oil invoice Signauirc on invoico or acceptance or shlpnrant acknowledges receipt of order Customers with past due invoices will not be shipped an) new orders or RMAs Past due invoices roam the date of mvmce wdl be charged 25% uucrom fact day as per Deparonenr or(ienand Setvwes Prompt Puymean Act Lower Systems is a (FR fIFIF T) SMALL BUS'INiSS will the Deparunent orGenead Services RRF 110020657 Thas ruluircx all customers and ameicws to be in compliance kith 13101111)[ puwten[ tunny TERMS REP FOB SHIP DA,.. DUE DATE INVOICED ANNUAL Not 30 1N nMIA Source 7!1!20[4 711.2014 06/0112014 ITEM DESCRIPTION QTY, 810 LIST $ UNIT $ TOTAL LSIIOODSD Linear l Year Depot Warranty Aar Enhanead Digifnl Acquisition Station 3 2.750.00 8,230.00 I,SD001SO Linear I Year OmSite Warranty For InagaServer 3 8,750.00 26,250.60 LS110008I 11' Linear I year on•slto maintenance & support fm Database Case Management 3 3,500.00 M,500.00 Rack Server 1-311000SIT Linear I year softwarc maintenance &: support 3 8350.00 26.230.00 LSILODOSWAE linear l year additional warranty Forensic Services Field Personnel Kits 3 2,98575 8,957.23 1,SU011OSWAE Inistar I year additional warranty Forensic Services Lab Kit Canon 3 973.00 2,923.00 LSI1000SWAE Linear I year additional warranty Botanic Services lab Kit XL.2 3 21500 643.00 LS000OSWAE Linear 1 year an -situ maintenance 5c support Rar Digital Output Devices 3 $,400.00 16,200.00 DISCOUNT Preferred Customer F Nfa t6Year Discount . 19,97723 - 19,97715 -- Warranty to Cover Period From: 771/2014 through 6/30/2017.x Thank you for your business Sales Tax (B.tl %) $0.90 Total $80,000.00 Balance Rue $80,000,00 20% restocking fee on all retuned merchandise 50 % restocking lee on special orders or rat product returned without all original packing materials No mums on solhrure All products will ba considered shipped complete and undamaged unless Linear is notified otherwise within 48 hours No returns withorn a RNIA 8 issued by Linear All products carr y % manufacturers uonaray only eadoss specified in writing. All additional service contracts (Preferred Customer Program) must be listed oil invoice Signauirc on invoico or acceptance or shlpnrant acknowledges receipt of order Customers with past due invoices will not be shipped an) new orders or RMAs Past due invoices roam the date of mvmce wdl be charged 25% uucrom fact day as per Deparonenr or(ienand Setvwes Prompt Puymean Act Lower Systems is a (FR fIFIF T) SMALL BUS'INiSS will the Deparunent orGenead Services RRF 110020657 Thas ruluircx all customers and ameicws to be in compliance kith 13101111)[ puwten[ tunny 4-1 Hanover Insurance Group® BUSINESSOWNERS LIABILITY SPECIAL BROADENING ENDORSEMENT THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. This endorsement modifies insurance provided under the following: BUSINESSOWNERS COVERAGE FORM SUMMARY OF COVERAGES Limits Page 1. Additional Insured by Contract, Agreement or Permit 1 2. Additional Insured — Broad Form Vendors 2 3. Alienated Premises 2 4. Bodily Injury Redefined 2 5. Broad Form Property Damage — Borrowed Equipment, Customers 2 Goods and Use of Elevators 6. Incidental Malpractice (Employed Nurses, EMT's and Paramedics) 3 7. Personal and Advertising Injury — Broad Form 3 8. Product Recall Expense $25,000 Occurrence $50,000 Aggregate 3 9. Unintentional Failure to Disclose Hazards 5 10. Unintentional Failure to Notify 5 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. 1. Additional Insured by Contract, Agreement or Permit Under SECTION II — LIABILITY, C. Who Is An Insured, Paragraph 4. is added as follows: a. Any person or organization for whom you are performing operations when you and such person or organization have agreed in writing in a contract, agreement or permit that such person or organization be added as an additional insured on your policy. Such person or organization 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: (1) Your acts or omissions; or (2) The acts or omissions of those acting on your behalf, but only with respect to: (3) "Your work" for the additional insured(s) at the location designated in the contract, agreement or permit; or (4) Premises you own, rent, lease, control or occupy. This insurance applies on a primary basis if that is required by the written contract, agreement or permit. b. This provision does not apply: (1) Unless the written contract or written agreement has been executed or permit has been issued prior to the "bodily injury", "property damage" or "personal and advertising injury"; (2) To any person or organization included as an insured by an endorsement issued by us and made part of this Policy; (3) To any person or organization included as an insured under Item 1.a.2. of this endorsement; (4) To any lessor of equipment: (a) After the equipment lease expires; or (b) If the "bodily injury", "property damage" or "personal and advertising injury' arises out of the sole negligence of the lessor; (5) To any: (a) Owners or other interests from whom land has been leased which takes 391 -1006 06 09 Includes copyrighted material of Insurance Services Office, Inc. Page 1 of 5 place after the lease for that land expires; or (b) Managers or lessors of premises if: (i) The occurrence takes place after you cease to be a tenant in that premises; or (ii) The "bodily injury", "property damage" or "personal and advertising injury" arises out of structural alterations, new construction or demolition operations performed by or on behalf of the manager or lessor; or (6) To "bodily injury", "property damage" or "personal and advertising injury" arising out of the rendering of or the failure to render any professional services. c. Additional insured coverage provided by this provision will not be broader than coverage provided to any other insured. d. All other insuring agreements, exclusions, and conditions of the policy apply. 2. Additional Insured - Broad Form Vendors Under SECTION II — LIABILITY, C. Who Is An Insured, paragraph 5. is added as follows: 5. Any person or organization with whom you agreed, because of a written contract or written agreement to provide insurance, but only with respect to "bodily injury' or "property damage" arising out of "your products' which are distributed or sold in the regular course of the vendor's business. The insurance afforded the vendor does not apply to: a. "Bodily injury" or "property damage" for which the vendor 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 that the vendor would have in the absence of the contract or agreement; b. Any express warranty unauthorized by you; c. Any physical or chemical change in the product made intentionally by the vendor; d. Repackaging, 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; e. 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 distribution or sale of the product; f. Demonstration, installation, servicing or repair operations, except such operations performed at the vendor's premises in connection with the sale of the product; g. Products which, after distribution or sale by you, have been labeled or relabeled or used as a container, part or ingredient of any thing or substance by or for the vendor; or h. "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: (1) The exceptions contained in paragraphs 5.d. or 5.1f.; or (2) Such inspections, adjustments, test 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. This insurance does not apply to 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. 3. Alienated Premises Under SECTION II — LIABILITY, B. Exclusions, paragraph 1.k.(2) is replaced in its entirety with 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. Bodily Injury Redefined Under SECTION II — LIABILITY, F. Liability and Medical Expenses Definitions, definition 4. is replaced in its entirety by the following: 4. "Bodily injury" means bodily injury, disability, sickness or disease sustained by a person, including death resulting from any of these at any time. "Bodily Injury' includes mental anguish or other mental injury resulting from "bodily injury ". 5. Broad Form Property Damage — Borrowed Equipment, Customers Goods, Use of Elevators 391 -1006 06 09 Includes copyrighted material of Insurance Services Office, Inc. Page 2 of 5 Hanover Insurance Group- a. Under SECTION II — LIABILITY, B. a. Under SECTION II — LIABILITY, B. Exclusions, paragraph 1.k., the following is Exclusions, Paragraph 1. o. is replaced in its added: entirety by the following: Paragraph (4) does not apply to "property o. Recall of Products, Work or Impaired damage' to borrowed equipment while at a Property jobsite and not being used to perform Damages claimed for any loss, cost or operations. expense incurred by you or others for the Paragraph (3), (4) and (6) do not apply to loss of use, withdrawal, recall, inspection, "property damage" to "customers goods" while repair, replacement, adjustment, removal on your premises nor to the use of elevators, or disposal of: b. Under SECTION II — LIABILITY, F. Liability (1) "Your product "; and Medical Expenses Definitions, the (2) "Your work "; or following additional definition is added: "Customers goods" means property of your (3) "Impaired property "; customer on your premises for the purpose of If such product, work or property is being: withdrawn or recalled from the market or a. Worked on; or from use by any person or organization because of a known or suspected defect, b. Used in your manufacturing process. deficiency, inadequacy or dangerous c. The insurance afforded under this provision is condition in it, but this exclusion does not excess over any other valid and collectible apply to "product recall expenses' that you property insurance (including deductible) incur for the "covered recall" of "your available to the insured whether primary, product ". The exception to the exclusion excess, contingent or on any other basis. does not apply to "product recall expenses" resulting from: 6. Incidental Malpractice — Employed Nurses, EMT's and Paramedics (1) Failure of any products to accomplish their intended purpose; Under SECTION II — LIABILITY, C. Who Is An Insured, paragraph 2.a.(1)(d) does not apply to a (2) Breach of warranties of fitness, nurse, emergency medical technician or quality, durability or performance; paramedic employed by you if you are not (3) Loss of customer approval, or any engaged in the business or occupation of cost incurred to regain customer providing medical, paramedical, surgical, dental, x- approval; ray or nursing services. (4) Redistribution or replacement of "your 7. Personal and Advertising Injury— Broad Form product" which has been recalled by Under SECTION II — LIABILITY, F. Liability and like products or substitutes; Medical Expenses Definitions, definition 15, (5) Caprice or whim of the insured; "Personal and Advertising Injury ", paragraph h. is (6) A condition likely to cause loss of added as follows: which any insured knew or had h. Discrimination or humiliation (unless insurance reason to know at the inception of thereof is prohibited by law) that results in this insurance; injury to the feelings or reputation of a natural (7) Asbestos, including loss, damage or person, but only if such discrimination or clean up resulting from asbestos or humiliation is: asbestos containing materials; or (1) Not done intentionally by or at the direction (8) Recall of "your products" that have no of: known or suspected defect solely (a) The insured; or because a known or suspected (b) Any officer of the corporation, director, defect in another of "your products" stockholder, partner or member of the has been found. insured; and b. Under SECTION II — LIABILITY, C. Who (2) Not directly or indirectly related to an Is An Insured, paragraph 4.c. is added as "employee ", nor to the employment, follows: prospective employment or termination of c. "Bodily injury" or "property damage" any person or persons by an insured. do not apply to "product recall 8. Product Recall Expense expense" arising out of any withdrawal 391 -1006 06 09 Includes copyrighted material of Insurance Services Office, Inc. Page 3 of 5 or recall that occurred before you acquired or formed the organization. c. Under SECTION II — LIABILITY, E. Liability and Medical Expense General Conditions, 2. Duties in the Event of Occurrence, Offense, Claim or Suit, paragraph e. is added as follows: e. 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. d. Under SECTION 11 — LIABILITY, F. Liability and Medical Expenses Definitions, the following additional definitions are added: "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 ". "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; (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; (4) Hiring additional persons, other than your regular "employees "; (5) Expenses incurred by "employees" including transportation and accommodations; (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 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 ". e. Under SECTION II — LIABILITY, D. Liability and Medical Expenses Limits of Insurance, the following is added: 5. The Limits of Insurance and rules stated below fix the most that we will pay under this Product Recall Expense Coverage. (1) The Aggregate Limit is the most that we will reimburse you for the sum of all "product recall expenses" incurred for all "product recall expenses" initiated during the policy period. (2) The Occurrence Limit shown on the Summary of Coverages is the most we will pay in connection with any one defect or deficiency. (a) 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 ". (b) Any amount reimbursed for "product recall expenses" in connection with any one "occurrence" will reduce the amount of the Aggregate Limit available for reimbursement of "product recall expenses' in connection with any other defect or deficiency. (c) If the Aggregate Limit has been reduced by 391 -1006 06 09 Includes copyrighted material of Insurance Services Office, Inc. Page 4 of 5 44k\ Hanover Insurance Group® reimbursement of "product recall expenses' to an amount that is less than the Occurrence Limit, the remaining Aggregate Limit is the most that will be available for reimbursement of "product recall expenses" in connection with any other defect or deficiency. 6. A deductible of $500 applies per each "Occurrence". 9. Unintentional Failure to Disclose Hazards Under SECTION II — LIABILITY, E. Liability and Medical Expenses General Conditions, paragraph 6. is added as follows: 6. Representations We will not disclaim coverage under this Coverage Form if you fail to disclose all hazards existing as of the inception date of the policy provided such failure is not intentional. 10. Unintentional Failure to Notify Under SECTION II — LIABILITY, E. Liability and Medical Expenses General Conditions, 2. Duties in the Event of Occurrence, Offense, Claim or Suit, paragraph f. is added as follows: Your rights afforded under this Coverage Form 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" or ..property damage' is not covered under this Policy. 391 -1006 06 09 Includes copyrighted material of Insurance Services Office, Inc. Page 5 of 5 BUSINESSOWNERS COVERAGE FORM TABLE OF CONTENTS Section I • Property Coverage: n„� Hanover Insurance Croup.. OB39898815 1001051 Covered Causes of Loss .............................................................. ............................... 6 Covered Property - Building ....................... .......................................... ....... ............... 4 Covered Property - Business Personal Property ...................... ............................... 4 Limitations....................... '................................. ................................................ ............ 6 PropertyNot Covered ................................................................... ............................... 5 Additional Coverages: Arson and Theft Reward ............................................................. ............................... 18 Business Income (Loss of) .......................................................... ............................... 9 Business Income from Dependent Properties .......................... ............................... 16 CivilAuthority ............................................... . ........................................ I..................... 12 Collapse........................................................................................ ............................... 8 Commercial Tools and Small Equipment .................................. ............................... 22 Interruption of Computer Services ............................................. ............................... 27 ComputerEquipment ................................................................... ............................... 18 DebrisRemo.. val ............................................................................ ............................... 6 DeferredPayments ...................................................................... ............................... 26 Employee Dishonesty including ERISA Compliance ................. ............................... 17 EquipmentBreakdown ................................................................. ............................... 20 ExtraExpense ............................................................................... ............................... 11 Fencesand Wails ......................................................................... ............................... 23 FineArts ........................................................................................ ............................... 23 Fire Department Service Charge ................................................ ............................... 8 Fire Extinguisher Systems Recharge ......................................... ............................... 16 Forgeryand Alteration ................................................................. ............................... 12 GlassExpenses ............................................................................ ............................... 16 Installation..................................................................................... ............................... 23 Leasehold Interest (Tenant's only) ............................................. ............................... 24 Money& Securities ...................................................................... ............................... 19 Money Orders and Counterfeit Paper Currency..... ... .... .......................................... 12 Ordinanceor Law ........................................................................ ............................... 13 Preservation of Property ............................................................ ............................... 7 Pollutant Clean-Up and Removal ............................................... ............................... 12 Salesperson's Samples ............................................................... ............................... 23 TenantSign ................................................................................... ............................... 19 Unauthorized Business Credit Card Use ............................... .. ... .... .............. I........... 25 UtilityServices, ....................... I ... I ................................. I ..... ................. I ................ 25 391-1003 06 09 Includes copyrighted material of Insurance Services Page 1 of 66 Office, Inc., with Its permission 17,945 Virus and Hacking Coverage .............. ..................................................................... 26 Water Damage, Other Liquids, Powder or Molten Material Damage ................... 9 Coverage Extensions: Accounts Receivables ............................................................................................... 29 Garages, Storage Buildings and Other Appurtenant Structures .......................... 30 Inventory and Loss Appraisal ..... ........................................................................ 31 Key Replacement and Lock Repair ............ ........ .......... ......................................... 30 Newly Acquired or Constructed Property ................................ ............................... 27 OutdoorProperty ....................................................................................................... 29 PersonalEffects ................................... ..................................................................... 29 Personal Property in Transit .................................................................................... 30 Personal Property Off Premises ............................ ................................................. 28 Valuable Papers and Records ................................................................................. 29 Deductibles............................................................................................................................. 37 Exclusions........................... .............. .............................. ..................................................... 31 Limitsof Insurance .................. ............................................................................................. 36 PropertyDefinitions .......................... .................................................................................... 42 Property General Conditions ................................................................................................ 41 Controlof Property ................................................. ........................................................ 41 Increase In Hazard ....................................... .................................................................. 42 Mortgageholders................................................................................. ........................ — 41 NoBenefit to Bailee ....... ................................................................................................ 42 Policy Period, Coverage Territory ......................................................... ....................... 42 ProtectiveDevices .......................................... ............................................................... 42 Property Loss Conditions ..................................................................................................... 37 Abandonment. ............................................................ ............................. ...................... 37 Appraisal.............................................................................................................. .......... 37 Duties In the Event Of Loss Or Damage ...................................................................... 37 LegalAction Against Us ..................................... - ....................................... ................. 38 LossPayment ................................................................................................................. 38 Pair, Sets or Parts ........................................................... .............................................. 41 RecoveredProperty ................................. ..................................................................... 41 Vacancy........................................ ................. ....... .... ................................................. 41 Section 11 - Liability Coverage: BusinessLiability ........................................................................................................... 46 MedicalExpenses .......................................................................................................... 48 Exclusions: Applicable to Business Liability ................... ........................................................ ...... 49 Applicable to Medical Expenses .................................................................................. 55 Nuclear Energy Liability Exclusion ................... .......................................................... 55 391-1003 06 09 Includes copyrighted material of Insurance Services Page 2 of 66 17,946 Office, Inc., with Its permission rep Hanover Insurance Croup. 0639898815 1001051 Liability and Medical Expenses Definitions ...... ............................... ............................... 59 Liability and Medical Expenses General Conditions .............................. ............................... 58 Liability and Medical Expenses Limits of Insurance .............................. ............................... 58 WhoIs An Insured ..................................................................................... ............................... 56 Section III - Common Policy Conditions (Applicable to Section I - Property and Section II - Liability) Cancellation............................................................................................... ............................... 63 Changes..................................................................................................... ............................... 64 Concealment, Representation or Fraud ................................................. ............................... 64 Examination of Your Books and Records ............................................... ............................... 64 Inspections and Surveys .......................................................................... ............................... 64 Insurance Under Two or More Coverages ............................................. ............................... 64 Liberalization............................................................................................. ............................... 65 OtherInsurance ......................................................................................... ............................... 65 Premiums..............:.................................................................................... ......I........................ 66 PremiumAudit ........................................................................................... ............................... 66 Transfer of Rights of Recovery Against Others to Us ........................... ............................... 66 Transfer of Your Rights and Duties Under this Policy .......................... ............................... 66 391 -1003 06 09' - Includes copyrighted material of Insurance Services Page 3 of 66 Office, Inc., with its permission 17,947 BUSINESSOWNERS COVERAGE FORM Various provisions In this policy restrict coverage. Read the entire policy carefully to determine rights, duties and what is and is not covered. Throughout this Coverage Form the words 'you" and 'your" refer to the Named Insured shown in the Declarations. The words "we ", "us" and "our" refer to the Company providing this insurance. In Section If - Liability, the word "insured" means any person or organization qualifying as such under Paragraph C - Who Is An Insured. Other words and phrases that appear in quotation marks have special meaning. Refer to Paragraph H. Property Definitions in Section I - Property and Paragraph F. Liability And Medical Expenses Definitions in Section II - Liability. SECTION I . PROPERTY buildings or structures or the A. Coverage premises, including: (a) Fire extinguishing equipment; We will pay for direct physical loss of or damage to Covered Property at the premises described (b) Outdoor furniture; in the Declarations caused by or resulting from (c) Floor coverings; and any Covered Cause of Loss, except as limited or (d) Appliances used for refrigerating, excluded within this policy form or any ventilating, cooking, dishwashing or endorsements making up the entire policy. laundering; 1. Covered Property (6) If not covered by other insurance: Covered Property includes Buildings as (a) Additions under construction, described under Paragraph a. below, alterations and repairs to the Business Personal Property as described buildings or structures; under Paragraph b. below, or both, depending on whether a Limit of Insurance is shown In (b) Materials, equipment, supplies and the Declarations for that type of property, temporary structures, on or within Regardless of whether coverage is shown In 1000 feet of the described premises, the Declarations for Buildings, Business used for making additions, Personal Property, or both, there is no alterations or repairs to the coverage for property described under buildings or structures. Paragraph 2. Property Not Covered. (7) Signs, whether or not they are a. Buildings, meaning the buildings and attached to covered buildings or structures at the premises described in the structures; and Declarations, including the following when (8) Interior and Exterior Building glass. physically and permanently attached to a b. Business Personal Property located in or building or structure in the Declarations: on the buildings at the described premises (1) Completed additions; or in the open (or in a vehicle) within 1000 (2) Fixtures, including outdoor fixtures; feet of the described premises, including: and (1) Property you own that is used in your (3) Permanently installed: business; (a) Machinery; and (2) Property of others that is in your care, (b) Equipment; custody or control, including the cost of labor, materials or services furnished that can not be removed without causing or arranged by you on personal significant damage to the building or those property of others, except as otherwise that would not be typically removed or be provided in Loss Payment Property considered removable. Loss Condition Paragraph E.5.d.(3)(b); (4) Your personal property in apartments, (3) Tenants improvements and rooms or common areas furnished by betterments. Improvements and you as landlord; betterments are fixtures, alterations, (5) Personal property owned by you that is installations or additions: used to maintain or service the (a) Made a part of the building or 391 -1003 06 09 Includes copyrighted material of Insurance Services Page 4 of 66 17,948 Office, Inc., with its permission 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 for under Paragraph A. 1.b.(2). (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 to a building leased to you from "theft" or attempted "theft', burglary or robbery. 2. Property Not Covered Covered Property does not include: a. Aircraft; b. Automobiles held for sale; c. Automobiles, vehicles or other self-propelled machines that are subject to motor vehicle registration; d. Contractors equipment, which is used or operated principally away from the premises described in the Declarations, or parts and equipment, whether attached or unattached to contractors 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 under the Additional Coverage - Commercial Tools and Small Equipment; e. "Money" or "securities" except as provided in the: (1) Money and Securities Additional Coverage; or (2) Employee Dishonesty Additional Coverage; L Contraband, or property in the course of Illegal transportation or trade; g. Land, whether or not resurfaced with stone, gravel or similar layer (including land on which the property is located), water, of any kind or from any source, growing crops or lawns; h. Outdoor fences, radio or television antennas (including satellite dishes) and their lead -in wiring, masts or towers, trees, shrubs or plants, all except as provided in the: (1) Outdoor Property Coverage Extension; 391 -1003 06 09 17,949 4 HArh�� 9yer nsurance Croup. 0639898815 1001051 or (2) Fences and Walls Additional Coverage; i. Watercraft (including motors, equipment and accessories); j. Accounts, bills, food stamps, other evidences of debt, accounts receivable or "valuable papers and records "; except as otherwise provided in this policy; k. "Computer(s)" which are permanently installed or designed to be permanently installed in any aircraft, watercraft, motortruck or other vehicle subject to motor vehicle registration. This paragraph does not apply to "computer(s)" while held as "stock "; I. "Electronic Data ", except as provided under Additional Coverages - Virus and Hacking. This paragraph does not apply to your "stock ". m. Animals, unless owned by others and boarded by you, or held for sale by you, or sold but not delivered, and only while Inside the building and then only against death and destruction, directly caused by or resulting from a "specified cause of loss "; n. The cost of excavations; grading; backfilling; filling; m Foundations of buildings, structures, machinery or boilers If their foundations are below: (1) The lowest basement floor; or (2) The surface of the ground, if there is no basement; p. Bulkheads, pilings, piers, wharves or docks, beach or diving platforms or appurtenances; q. Property that is covered under another coverage form of this or any policy in which it is more specifically described, except for the excess of the amount due (whether you can collect on it or not) from that other insurance; r. Retaining walls that are not part of a building except as provided for under the Additional Coverage for Fences and Walls; s. Underground pipes, flues or drains; t. "Computer Equipment ", except as provided for under the: (1) Additional Coverage - "Computer Equipment" or (2) Additional Coverage - Equipment Breakdown; u. Commercial tools and small equipment except as provided in Commercial tools Includes copyrighted material of Insurance Services Page 5 of 66 Office, Inc. with its permission and Small Equipment Additional Coverage or for contractors 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; v. Employee tools and small equipment except as provided for in the Additional Coverage for Commercial Tools and Small Equipment or when added by separate endorsement. w. Bridges of any type or kind unless the bridge is part of a building described in the Declarations. x. Property left or stored in the open except those that (1) typically reside outside or (2) are provided for in the Additional Coverages or Extensions of Coverage. y. Property In transit or otherwise off- premises except as specifically provided for elsewhere in this policy. 3. Covered Causes Of Loss Risks of direct physical loss unless the loss is: a. Excluded in Paragraph B. Exclusions in Section I; or b. Limited In Paragraph 4. Limitations in Section 1. 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 the Additional Coverage for 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 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. b. We will not pay for loss of or damage to fragile articles such as glassware, statuary of any type (including fountains), marbles, chinaware and porcelains, if broken, unless breakage was caused by one or more of the "specified causes of loss" or building glass breakage. This restriction does not apply to: (1) Glass that is part of the exterior or interior of a building or structure; (2) Property held for sale and stored in their original packaging or containers; or (3) Photographic lenses 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. 5. Additional Coverages Unless otherwise stated, payments made under the following Additional Coverages will not Increase the applicable limits of insurance. All policy Exclusions, Limitations and Conditions apply unless otherwise stated. a. Debris Removal Subject to Paragraphs (2) and (3), we will pay your expense to remove debris of Covered Property caused by or resulting from a Covered Cause of Loss that occurs during the policy period. The expenses will be paid only if they are reported to us in writing within 180 days of the date of direct physical loss or damage. (1) Debris Removal does not apply to costs to: (a) Extract "pollutants" from land or water: or (b) Remove, restore or replace polluted land or water. (2) Subject to the exceptions in Paragraph (3) below, the following provisions apply: (a) The most that we will pay for the total of direct physical loss or damage plus debris ,removal expense is the Limit of Insurance 391 -1003 06 09 Includes copyrighted material of Insurance Services Page 6 of 66 17,950 Office, Inc. with its permission applicable to the Covered Property that has sustained loss or damage. (b) Subject to Paragraph (a) above, the amount we will pay for debris removal expense is limited to 25% of the sum of the deductible plus Example ##2 the amount that we pay for direct physical loss or damage to the Covered Property that has sustained loss or damage. (3) We will pay up to an additional $25,000 for debris removal expense, for each location, in any one occurrence of physical loss or damage to Covered Property, if one or both of the following circumstances apply: (a) 'The total of the actual debris removal expense plus the amount we pay for direct physical loss or damage exceeds the Limit of Insurance on the Covered Property that has sustained loss or damage. (b) The.actual debris removal expense exceeds 25% of the sum of the deductible plus the amount that we pay for direct physical loss or damage to the Covered Property that has sustained loss or damage. Therefore, if Paragraphs (3)(a) and /or (3)(b) apply, our total payment for direct physical loss or damage and debris removal expense may reach but will never exceed the Limit of Insurance on the Covered Property that has sustained loss or damage, plus $25,000. (4) Examples Example ##1 Limitoflnsurance $ 150,000 Amount of Deductible $ 1,000 Amount of Loss $ 125,000 Amount of Loss Payable $ 124,000 ($125,000 - $1,000) Debris Removal Expense $ 10,000 Debris Removal Expense Payable $ 10,000 ($10,000 is 8% of $125,000) The debris removal expense is less than 25% of the sum of the loss payable plus the deductible. The sum of the loss payable and the debris removal expense ($124,000 + $10,000 rm� Hanover lnsuraocc Croup.. 0839898815 1001051 _ $134,000) is less than the Limit of Insurance. Therefore the full amount of debris removal expense is payable in accordance with the terms of Paragraph (3). Limit of Insurance $ 150,000 Amount of Deductible $ 1,000 Amount of Loss $ 125,000 Amount of Loss Payable $ 124,000 ($125,000 - $1,000) Debris Removal Expense $ 60,000 Debris Removal Expense Payable Basic Amount $ 26,000 Additional Amount $ 25,000 The basic amount payable for debris removal expense under the terms of Paragraph (2) Is calculated as follows: $125,000 ($124,000 + $1,000) x .25 = $31,250 (capped at $26,000). The cap applies because the sum of the loss payable ($124,000) and the basic amount payable for debris removal expense ($31,250) cannot exceed the Limit of Insurance ($150,000). The additional amount payable for debris removal expense is provided in accordance with the terms of Paragraph (3), because (from (3)(b)) the debris removal expense ($60,000) exceeds 25% of the loss payable plus the deductible ($60,000 is 48.0% of $125,000), and because (from (3)(a)) the sum of the loss payable and debris removal expense ($124,000 + $60,000 = $184,000) would exceed the Limit of Insurance ($150,000). The additional amount of covered debris removal expense is $25,000, the maximum payable under Paragraph (3). Thus the total payable for debris removal expense in this example is $51,000; $9,000 of the debris removal expense Is not covered. b. Preservation Of Property If it is necessary to move Covered Property from the described premises to preserve It from loss or damage by a Covered Cause of Loss, we will pay for any direct physical loss of or damage to that property: (1) While it is being moved or while temporarily stored at another location; 391 -1003 06 09 Includes copyrighted material of Insurance Services Page 7 of 66 17,951 Office, Inc. with its permission and (2) Only if the loss or damage occurs within 30 days after the property is first moved. This Additional Coverage does not increase the applicable Limit of Insurance. c. Fire Department Service Charge When the fire department is called to save or protect Covered Property from a Covered Cause of Loss, we will pay up to $10,000 for your liability for fire department service charges unless a higher Limit of Insurance Is shown in the Declarations if: (1) Assumed by contract or agreement prior to loss; or (2) Required by local ordinance. This Additional coverage is not subject to the Limits of Insurance of Section I - Property. d. Collapse The coverage provided under this Additional Coverage - Collapse applies only to an abrupt collapse as described and limited in d.(1). through d.(6). (1) For the purpose of this Additional Coverage - Collapse, abrupt collapse means an abrupt falling down or caving in of a building or any part of a building with the result that the building or part of the building cannot be occupied for its intended purpose. (2) We will pay for direct physical loss or damage to Covered Property, caused by abrupt collapse of a building or any part of a building that is insured under this policy or that contains Covered Property insured under this policy, only if such collapse Is caused by one or more of the following: (a) Decay of building or any part the building 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; (d) Use of defective material or methods in construction, remodeling or renovation if the abrupt collapse occurs after the construction, remodeling or renovation is complete, but only if the collapse is caused in part by: (1) A cause of loss listed in (2).a. or (2).b of this Additional Coverage.; (2) One or more of the "specified causes of loss "; or (3) Breakage of building glass; or (4) Weight of people or personal property; or (5) 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) Outdoor radio or television antennas (including satellite dishes) and their lead -in wiring, masts or towers; (b) Awnings, gutters and downspouts; (c) Yard Fixtures; (d) Outdoor swimming pools; (e) Fences; (f) Piers, wharves and docks; (g) Beach or diving platforms or appurtenances; (h) Retaining walls or other exterior walls attached or unattached to the building; and (1) Walks, roadways and other paved surfaces; if an abrupt collapse is caused by a cause of loss listed in Paragraphs (2)(a) through (2)(d), we will pay for loss or damage to that property only if such loss or damage is a direct result of the 391. 1003 06 09 Includes copyrighted material of Insurance Services Page 8 of 66 17,952 Office, Inc. with its permission abrupt collapse of a building insured under this policy and the property is Covered Property under this policy. (5) If personal property abruptly falls down or caves in and such collapse is not the result of abrupt collapse of a building, we will pay for loss or damage to Covered Property caused by such collapse of personal property only if: (a) The abrupt collapse of personal property was caused by a cause of loss listed in Paragraphs (2)(a) through (2)(d) of this Additional Coverage; (b) The personal property which collapses Is inside a building; and (c) The property which collapses is not of a kind listed in Paragraph (4), regardless of whether that kind of property is considered to be personal property or real property. The coverage stated in this Paragraph (5) does not apply to personal property if marring and /or scratching is the only damage to that personal property caused by the collapse. (6) This additional coverage - Collapse does not apply to personal property that has not abruptly fallen down or caved in, even if the personal property shows evidence of cracking, bulging, sagging, bending, leaning, settling, shrinkage or expansion. This Additional Coverage, Collapse, does not increase the Limits Of Insurance of Section I - Property. e. Water Damage, Other Liquids, Powder or Molten Material Damage If loss or damage caused by or resulting from covered water or other liquid, powder or molten material damage loss occurs, we will also pay the cost to tear out and replace any part of the building or structure to repair damage to the system or appliance from which the water or other substance escapes. We will not pay the cost to repair any defect that caused the loss or damage; but we will pay the cost to repair or replace damaged parts of fire extinguishing equipment if the damage: (1) Results in discharge of any substance from an automatic fire protection system; or (2) Is directly caused by freezing 391 -1003 06 09 17,953 I�1Y Hanover Insurance Croup - OB39898815 1001051 This Additional Coverage does not increase the Limits of Insurance of Section I - Property. f. Loss of Business Income When Business Income Coverage is provided under this policy: (1) Business Income (a) We will pay for the actual loss of Business Income you sustain due to the necessary suspension of your "operations" during the "period of restoration ". The suspension must be caused by direct physical loss of or damage to property at the described premises. The loss or damage must be caused by or result from a Covered Cause of Loss. With respect to loss of or damage to personal property in the open or personal property in a vehicle, the described premises include the area within 1000 feet of the site at which the described premises are located. With respect to the requirements set forth in the preceding paragraph, if you occupy only part of the site at which the described premises are located, your premises means: (1) The portion of the building which you rent, lease or occupy; and (2) Any area within the building or on the site at which the described premises are located, If that area services, or is used to gain access to, the described premises. (b) We will only pay for loss of Business Income that you sustain during the "period of restoration" and that occurs within the designated, consecutive number of months found on the Declarations Page beginning immediately after the date of direct physical loss or damage. For purposes of this insurance, all recoverable loss ceases when the "period of restoration" ends. (c) Business Income means the; (1) Net Income (Net Profit or Loss before Income taxes) that would have been earned or incurred if no physical loss or damage had Includes copyrighted material of Insurance Services Page 9 of 66 Office, Inc. with its permission occurred, but not Including any Covered Cause of Loss. Net Income that would likely (3) Special Business Income and Extra have been earned as result of Expense Exclusions an increase in the volume of business due to favorable We will not pay for: business conditions caused by (a) Any extra expense, or increase of the impact of the Covered Cause Business Income loss, caused by or of Loss on customers or on resulting from: other businesses; and (1) Delay in rebuilding, repairing or (2) Continuing normal operating replacing the property or expenses Incurred, including resuming "operations" , due to "payroll expenses ". interference at the location of the (2) Extended Business Income rebuilding, repair or replacement (a) If no Business Income Coverage is by strikers or other persons; or provided under this policy, then (2) "Suspension ", lapse or there is no Extended Business cancellation of any license, lease Income Coverage afforded under or contract. But If the suspension, this policy. lapse or cancellation is directly (b) If the "suspension" caused by the suspension of your necessary of 'operations", we will cover such your "operations" produces a loss that affects your Business Business Income loss payable Income during the period of under this policy, we will pay for the restoration ". actual loss of Business Income you incur during the period that: (b) Loss of Business Income (including Extended Business Income) caused (1) Begins on the date properly by direct physical loss of or except finished stock is actually damage to "electronic dais" except repaired, rebuilt or replaced (to as provided under Additional the extent necessary to resume Coverage gg. Interruption of operations) and "operations" are Computer Operations. resumed; and a (2) Ends the (c) Any other consequential loss. earlier of: (4) Resumption of Operations (1) The date you could restore your "operations ", with We will reduce the amount of your: reasonable speed, to the level (a) Business Income Loss, other than which would generate the Extra Expense, to the extent you Business Income amount that can resume your "operations ", In would have existed if no direct whole or part by using damaged or physical loss or damage had undamaged property (including occurred; or merchandise or stock) at the (ii) The number of consecutive described premises or elsewhere. days shown in the Additional (b) Extra Expense loss, as provided Property Coverage Schedule under paragraph g. Extra Expense, for this Additional Coverage to the extent you can return to after the date determined in "operations" to normal and (2)(b)(1) above. discontinue Extra Expense. However, Extended Business This Additional Coverage is not subject Income does not apply to loss of to the Limits of Insurance of Section I - Business Income incurred as a Property. result of unfavorable business (5) This Additional Coverage does not conditions caused by the Impact of apply to any other Additional the Covered Cause of Loss in the Coverages or Coverage Extensions area where the described premises except: are located. (c) Loss of Business Income must be (6) With regard to (1) Business Income: caused by direct physical loss or (a) Collapse; damage at the described premises (b) Civil Authority; caused by or resulting from any 391 - 1003 06 09 17,954 Includes copyrighted material of Insurance Services Page 10 of 66 Office, Inc. with its permission (c) Computer Equipment; (d) Equipment Breakdown; or (e) Utility Services; or (f) Interruption of Computer Operations (7) With regard to (2) Extended Business Income: (a) Collapse; (b) Computer Equipment; or (c) Equipment Breakdown. g. Extra Expense When Loss of Business Income Coverage is provided under this policy: (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 1000 feet of the site at which the described premises are located. With respect to the requirements set forth in the preceding paragraph, if you occupy only part of the site at which the described premises are located, your premises means: (a) The portion of the building which you rent, lease or occupy; and (b) Any area within the building or on the site at which the described premises are located, if that area services, or is used to gain access to, the described premises. (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 (2) 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 ". 391 - 1003 06 09 17,955 Hanover Insurance Group.. OB39898815 1001051 (c) To: (1) Repair or replace any property; or (2) Research, replace or restore the lost information on damaged "valuable papers and records" to the extent it reduces the amount of loss that otherwise would have been payable under this Additional Coverage or Additional Coverage f. Business Income. With regard to (c) (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. This Additional Coverage is not subject to the Limits of Insurance of Section I - Property, (4) Special 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; or (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 ". (b) Any other consequential loss (5) This Additional Coverage does not apply to other Additional Coverages or Coverage Extensions except: (a) Collapse; (b) Civil Authority; Includes copyrighted material of Insurance Services Page 11 of 66 Office, Inc. with Its permission (c) Computer Equipment; (d) Equipment Breakdown; or (e) Utility Services. IN. Pollutant Clean Up And Removal We will pay your expense to extract "pollutants" from land or water at the described premises if the discharge, dispersal, seepage, migration, release or escape of the "pollutants" is caused by or results from a Covered Cause of Loss that occurs during the policy period. The expenses will be paid only if they are reported to us in writing within 180 days of the earlier of: (1) The date of direct physical loss or damage; or (2) The end of the policy period. The most we will pay for each location under this Additional Coverage is $25,000 for the sum of all such expenses arising out of Covered Causes of Loss occurring during each separate 12 month period of this policy. This Additional Coverage Is not subject to the Limits of Insurance of Section I - Property. Civil Authority When Loss of Business Income Coverage is provided under this policy: We will pay for the actual loss of Business Income (not including Extended Business Income), you sustain and necessary Extra Expense caused by action of civil authority that prohibits access to the described premises due to direct physical loss of or damage to property within 1 mile of the described premises, caused by or resulting from any Covered Cause of Loss. The coverage for Business Income will begin 72 hours after the time of that action and will apply for a period of up to three consecutive weeks after coverage begins. The coverage for necessary Extra Expense will begin immediately after the time of that action and ends; (1) 3 consecutive weeks after the time of that action; or (2) When your Business Income coverage ends; whichever is later. The definitions of Business Income and Extra Expense contained in the Business Income and Extra Expense Additional Coverages also apply to this Civil Authority Additional Coverage. The Civil 391 - 1003 06 09 17,956 Authority Additional Coverage is not subject to the Limits of Insurance of Section I - Property. j. Money Orders and Counterfeit Paper Currency We will pay for loss resulting directly from your having accepted in good faith, in exchange for merchandise, "money" or services: (1) Money orders issued by any post office, express company or bank that are not paid upon presentation; or (2) "Counterfeit" paper currency that is acquired during the regular course of business. The most we will pay for any loss under this Additional Coverage is $5,000. This Additional Coverage is not subject to the Limits of Insurance of Section I - Property. k. Forgery or Alteration (1) We will pay for loss resulting directly from forgery or alteration of checks, drafts, promissory notes, bills of exchange or similar written promises of payment in "money ", that you or your agent has issued, or that was issued by someone who impersonates you or your agent. (2) If you are sued for refusing to pay the checks, drafts, promissory notes, bills of exchange or similar written promises of payment in "money ", on the basis that it has been forged or altered, and you have our written consent to defend against the suit, we will pay for any reasonable legal expenses that you Incur in that defense. (3) For purposes of this Additional Coverage, the definition of "occurrence" is: (a) Any Loss (1) Caused by any one or more persons; or (2) Involving a single act or series of related acts; is considered one "occurrence' regardless of the number of checks, drafts, promissory notes, bills of exchange or similar written promises of payment involved. (4) We will pay only for covered loss or damage you sustain through acts Includes copyrighted material of Insurance Services Page 12 of 66 Office, Inc. with its permission committed or events occurring during the policy period. Regardless of the number of years this policy remains In force or the number of premiums paid, no Limit of Insurance cumulates from year to year. (5) The most we will pay for any loss, including legal expenses, under this Additional Coverage is $10,000. This Additional Coverage Is not subject to the Limits of Insurance of Section I - Property. I. Ordinance or Law (1) This Additional Coverage applies only: (a) When a Limit of Insurance for the affected building (or buildings) is shown on the Declarations, and then only (b) To buildings insured on a replacement cost basis. (2) Application of Coverages: The coverages provided under this Additional Coverage apply only if (a) and (b) are satisfied and are then subject to the qualifications found in (c). (a) The Ordinance or law: (i) Regulates the demolition, construction or repair of buildings, or establishes zoning or land use requirements at the described premise; (it) Is in force at the time of loss; and (iii) Was not in force at the time the involved construction was completed. But coverage under this Additional Coverage applies only in response to the minimum requirements of the ordinance or law. Losses and costs incurred in complying with recommended actions or standards that exceed actual requirements are not covered under this Additional Coverage. i'np . Hanover Insurance Group.. 01339898815 1001051 direct physical damage, that is not covered under this policy, and the building damage in its entirety results in enforcement of the ordinance or law. (iii) But if the building sustains physical damage that Is not covered under this policy, (iv) and such damage Is the subject of the ordinance or law, then there is no coverage under this endorsement even if the building has also sustained covered direct physical damage. (c) In the situation described in (b) (ii) above, we will not pay the full amount of loss otherwise payable under the terms of coverages for Coverage for Loss or Damage to the Undamaged Portion of the Building, Demolition Cost Coverage or Increased Cost of Construction Coverage. Instead, we will pay a proportion that covered direct physical damage bears to the total direct physical damage. Section (7) of this coverage provides an example of this procedure. However, if the covered direct physical damage alone would have resulted in enforcement of the ordinance or law, then we will pay the full amount of the loss otherwise payable under the terms of Coverages for Loss or Damage to the Undamaged Portion of the Building, Demolition Cost Coverage or Increased Cost of Construction Coverage. (3) We will not pay under this Additional Coverage for the costs associated with the enforcement of any ordinance or law which requires any insured or others to test for, monitor, clean up, remove, contain, treat, detoxify or neutralize, or In any way respond to, or assess the effects of "pollutants ". (4) Coverage (b) (1) The building sustains direct (a) Coverage for Loss to the physical damage that is Undamaged Portion of the covered under this Additional Building Coverage and such damage With respect to the building that results in enforcement of the has sustained covered direct ordinance or law; or physical damage, we will pay for (ii) The building sustains both the loss in value of the direct physical damage that is undamaged portion of the building covered under this policy and as a consequence of enforcement 391 - 1003 06 09 Includes copyrighted material of Insurance Services Page 13 of 66 17,957 Office, Inc. with its permission of an ordinance or law that (5) Loss Payment requires demolition of undamaged parts of the same building. (a) The following loss payment Coverage for Loss to the provisions, 5. (b) and (c), are Undamaged Portion of the subject to the apportionment Building is Included within the procedure set forth in Section I. 2. Limit of Insurance shown in the (c) of the coverage. Declarations as applicable to the (b) When there Is a loss in value of covered building. Coverage for an undamaged portion of the Loss to the Undamaged Portion of building to which Coverage for the Building does not increase the Loss to the Undamaged Portion of Limit of Insurance. the building applies, the loss (b) Demolition Cost Coverage payment for that building, With to the building that Including damaged and .respect has sustained covered direct undamaged portions, will be physical damage, we will pay the determined as follows: cost to demolish and clear the (I) If the property is repaired site of the undamaged parts of the or replaced on the same same building, as a consequence or another premises, we of enforcement of an ordinance or will not pay more than the law that requires demolition of lesser of: such undamaged property. (1) The amount you Paragraph E.5.d. Loss Payment actually spend to Property Loss Condition does not apply repair, rebuild or to Demolition Cost Coverage. reconstruct the (c) Increased Cost of Construction building, but not for more than the With respect to the building that has amount it would cost sustained covered direct physical to restore the damage, we will pay the increased building on the same cost to: premises and to the (I) Repair or reconstruct same height, floor damaged portions of that area, style and building; and /or comparable quality (it) Reconstruct or remodel of the original property insured; or undamaged portions of that building, whether or (2) The Limit of not demolition is required; Insurance shown in the Declarations as When the increased cost is a applicable to the consequence of enforcement of the covered building. minimum requirements of the ordinance or law. (ii) If the property is not However: repaired or replaced. We will not pay more than the lesser This coverage applies only if the of: restored or remodeled property is (1) The actual cash intended for similar occupancy as value of the building the current property, unless such at the time of loss; or occupancy is not permitted by zoning or land use ordinance or law. (2) The Limit of Insurance shown In We will not pay for the increased the Declarations as cost of construction if the building is applicable to the not repaired, reconstructed or covered building. remodeled. (c) The most we will pay, for the total Paragraph E.S.d. Loss Payment all covered losses for Property Loss Condition does not D Demolition Cost and Increased apply to the Increased Cost of Cost of Construction is the Limit Construction Coverage. of Insurance shown below.. 391.1003 06 09 Includes copyrighted material of Insurance Services Page 14 of 66 17,958 Office, Inc. with Its permission Subject to this combined Limit of Insurance, the following loss payment provisions apply: (i) For Demolition Cost, we will not pay for more than the amount you actually spend to demolish and clear the site of the described premises. (II) With respect to the Increased Cost of Construction: (1) We will not pay for the Increased cost of construction: lhr Hanover ITria Ice Group.. 0839898815 1001051 then the most we will pay under this Additional Coverage, for each damaged building is $5,000 or the amount shown in the Additional Property Coverage Schedule. This Additional Coverage is not subject to the Limits of Insurance of Section I - Property. (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 (a) Until the property Is (b) You failed to comply with. actually repaired or (7) Example of Proportionate Loss Payment replaced, at the for Ordinance or Law Coverages same or another (procedures as set forth in Section premises; and 1.24) of this coverage): (b) Unless the repairs or replacement are made as soon as reasonably possible after the loss or damage, not to exceed two years. (iii) If the building Is repaired or replaced at the same premises, or if you elect to rebuild at another premises, the most we will pay for the increased cost of construction is the increased cost of construction at the same premises. (iv) If the ordinance or law requires relocation to another premises, the most we will pay for the increased cost of construction is the Increased cost of construction at the new premises. (v) The most we will pay for loss under Demolition Cost and Increased Cost of Construction for each described building insured under this coverage form is $5,000 or the amount shown in the Additional Property Coverage Schedule. If a damaged building(s) Is covered under a blanket Limit of Insurance which applies to more than one building or item of property, Assume: Wind is a Covered Cause of Loss; Flood is an excluded Cause of Loss The building has value of $50,000 The total direct physical damage to the building: $25,000 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): $7,500 Portion of direct physical damage that is not covered (caused by flood): $17,500 Loss under Law or Ordinance, Increased Cost of Construction of this coverage: $15,000 Step 1: Determine the proportion that the covered direct physical damage bears to the total direct physical damage. $7,500 divided by $25,000 = .30 Step 2: Apply that portion to the Ordinance or Law loss. $15,000 x .30 = $4,500 In this example, the most we will pay under this endorsement for the Increased Cost of Construction loss is $4,500 subject to the applicable Limit of Insurance and any other applicable provisions. Note: The same procedure applies to 391. 1003 06 09 Includes copyrighted material of Insurance Services Page 15 of 66 17,959 Office, Inc. with its permission losses under Coverage for Loss to the Undamaged Portion of the Building and Demolition Cost. m. Business Income from Dependent Properties When Business Income Coverage is provided under this policy: (1) We will pay for the actual loss of Business Income (not including Extended 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. The most we will pay under this Additional Coverage is $5,000 per "occurrence ", regardless of the number of "dependent properties" affected. The "dependent property" must be located in the coverage territory. (2) We will reduce the amount of your Business Income loss, other than Extra Expense, to the extent you can resume "operations ", in whole or in part, by using any other available: (a) Source of materials; or (b) Outlet for your products (3) If you do not resume "operations ", or do not resume "operations" as quickly as possible, we will pay based on the length of time it would have taken to resume "operations" as quickly as possible. (4) 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 (b) Ends on the date when the property at the premises of the "dependent property" should be repaired, rebuilt or replaced (to the extent necessary to resume operations) with reasonable speed and similar quality or 12 months immediately following the date of direct physical loss or damage, whichever is shorter. (5) The Business Income coverage period, as stated in Paragraph (4), does not include any increased period required due to the enforcement of any ordinance or law that: (a) Regulates the construction, use or repair, or requires the tearing down of any property; or (b) Requires any insured or others to test for, monitor, clean up, remove, contain, treat, detoxify or neutralize, or In any way respond to, or assess the effects of "pollutants ". The expiration date of this policy will not reduce the Business Income coverage period. (6) The definition of Business Income contained in the Business Income Additional Coverage also applies to this Business Income From Dependent Properties Additional Coverage. (7) This Additional Coverage is not subject to the Limits of Insurance of Section I - Property. n. Glass Expenses When caused by or resulting from a Covered Cause of Loss, we will pay for expenses incurred to: (1) Put up temporary plates or board up. openings if repair or replacement of damaged glass is delayed. (2) Replace lettering, artwork, sensors or other Items permanently affixed to, or a part of, the damaged glass. (3) Remove or replace obstructions when repairing or replacing glass that is part of a building. This does not include removing or replacing window displays. o. Fire Extinguisher Systems Recharge Expense (1) When caused by or resulting from a Covered Cause of Loss, we will pay: (a) The cost of recharging or replacing, whichever is less, your fire extinguishers and fire extinguishing systems (including hydrostatic testing if needed) if they are discharged on or within 1000 feet of the described premises; and (b) For loss or damage to Covered Property if such loss or damage is the result of an accidental discharge of chemicals from a fire extinguisher or a fire extinguishing syste m. (2) No coverage will apply if the fire extinguishing system is discharged 391 - 1003 06 09 includes copyrighted material of Insurance Services Page 16 of 66 17,960 Office, Inc. with Its permission during installation or testing. (3) The most we will pay under this Additional Coverage is $5,000 in any one "occurrence ". The Deductible does not apply to these expenses. (4) This Additional Coverage is not subject to the Limits of Insurance of Section 1 - Property. p. Employee Dishonesty including ERISA Compliance (1) We will pay for direct loss of or damage to Business Personal Property and "money" and "securities" resulting from dishonest or criminal acts committed by any of your "employees" acting alone or in collusion with other persons (except you or your partner) with the manifest Intent to: (a) Cause you to sustain loss or damage; and also (b) Obtain financial benefit (other than salaries, commissions, fees, bonuses, promotions, awards, profit sharing, pensions or other employee benefits earned in the normal course of employment) for: (1) Any "employee "; or (2) Any other person or organization. (2) We will not pay for loss or damage: (a) Resulting from any dishonest act committed by any of your "employees" (except as provided in paragraph (1)), "managers ", directors, trustees, officers, administrators or persons of similar nature or responsibilities: (1) Whether acting alone or in collusion with other persons; or (2) While performing services for you or otherwise. (b) The only proof of which as to its existence or amount is: (1) An inventory computation; or (2) A profit and loss computation. (3) The most we will pay for loss or damage in any one "occurrence" is $10,000 or the amount shown in the Additional Property Coverage Schedule. This Additional Coverage is not subject to the Limits of Insurance for Section I - Property. (4) All loss or damage: 391 - 1003 06 09 17,961 Hanover insurance Croup_ OB39898815 1001051 (a) Caused by one or more persons; or (b) Involving a single act or series of acts; is considered one "occurrence ". (5) If any loss is covered: (a) Partly by this insurance; and (b) Partly by any prior cancelled or terminated insurance that we or any affiliate had issued to you or any predecessor in Interest; the most we will pay is the larger of the amount recoverable under this insurance or the prior insurance. We will pay only for loss or damage you sustain through acts committed or events occurring during the Policy Period. Regardless of the number of years this policy remains in force or the number of premiums paid, no Limit of Insurance cumulates from year to year or period to period. (6) This Additional Coverage is cancelled as to any "employee" Immediately upon discovery by: (a) You; or (b) Any of your partners, "members ", "managers ", officers or directors not in collusion with the "employee"; of any dishonest act committed by that "employee" before or after being hired by you. (7) We will pay only for covered loss or damage sustained during the policy period and discovered no later than one year from the end of the policy period. (8) If you (or any predecessor in Interest) sustained loss or damage during the policy period of any prior insurance that you could have recovered under that insurance except that the time within which to discover loss or damage had expired, we will pay for it under this Additional Coverage, provided: (a) This Additional Coverage became effective at the time of cancellation or termination of the prior insurance; and (b) The loss or damage would have been covered by this Additional Coverage had It been in effect when the acts or events causing Includes copyrighted material of Insurance Services Page 17 of 66 Office, Inc. with its permission the loss or damage were committed or occurred. (9) The insurance provided under paragraph (8) above is part of, not in addition to, the Limit of Insurance applying to this Additional Coverage and is limited to the lesser amount recoverable under: (a) This Additional Coverage as of its effective date; or (b) The prior insurance had it remained in effect. (10) Welfare and Pension Plan ERISA Compliance. In compliance with certain provisions of the Employee Retirement Income Security Act of 1974 (ERI SA): (a) If any Plan is insured jointly with any other entity under this insurance, you or the Plan Administrator must select a Limit of Insurance for the Employee Dishonesty coverage that is sufficient to provide an amount of insurance for each Plan that is at least equal to that required if each Plan were separately insured. (b) If the Insured first named in the Declarations is an entity other than a Plan, any payment we make to that Insured for loss sustained by any Plan will be held by that Insured for the use and .benefit of the Plan(s) sustaining the loss. (c) If two or more Plans are insured under this insurance, any payment we make for loss: (1) Sustained by two or more Plans; or (2) Of commingled funds or other property of two or more Plans that arises out of one "occurrence" because of dishonest acts of "employees ", it is to be shared by each Plan sustaining loss in the proportion that the amount of Insurance required for each such Plan under ERISA provisions bears to the total of those amounts. (d) The Deductible Condition applicable to the "Employee" Dishonesty Additional Coverage does not apply to loss sustained by any Plan subject to ERISA 391 - 1003 06 09 17,962 which is Insured under this insurance. q. Arson and Theft Reward In the event that a covered fire loss was the result of an act of arson, or you suffered a covered "theft" loss, we will reimburse you up to $10,000 for rewards that you pay for information leading to convictions for that act of arson or "theft ". This Additional Coverage is not subject to the Limits of Insurance of Section I - Property. r. Computer Equipment (1) When caused by or resulting from a Covered Cause of Loss, we will pay for direct physical loss to the following Covered Property which is your property or the property of others in your care, custody or control: (a) "Computer equipment" or "computer(s) "; (b) Climate control equipment and fire protective equipment used exclusively with your "computer equipment'; (c) Programming documentation and Instruction manuals; and (d) The necessary loss of Business Income and Extra Expense as provided in the Additional Coverages for Business Income and Extra Expense you incur to avoid or minimize the suspension of business and to continue "operations" because of direct physical loss or damage to covered property. (2) We will not pay for any loss 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 under 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. (3) If we provide Building coverage only, we will only pay for loss to computers Includes copyrighted material of Insurance Services Page 18 of 66 Office, Inc. with its permission that service building operations at the insured's described premises and are located at the insured's described premises. (4) The most we will pay for any loss under this Additional Coverage is $35,000 for the Covered Property listed in (1) (a - d) above, or the amount shown in the Additional Property Coverage Schedule. The most we will pay for Extra Expense is $5,000 or the amount shown in the Additional Property Coverage Schedule. This Additional Coverage is not subject to the Limits of Insurance Section I - Property. Exclusions B. 1. b. and B. 1. g. do not apply to this Additional Coverage. (5) This insurance is excess to any other insurance also covering "computer equipment" or "computer(s) ". (6) Special Computer Equipment Exclusion We will not pay for loss or damage: (a) To any properly not sustaining direct physical loss or damage even If covered loss or damage to other covered property renders such associated or related items unusable or otherwise unfit. (b) This exclusion applies to "software" or "hardware ". (c) Such loss to associated or related items is not considered to have suffered direct physical loss or damage for purposes of this insurance. s. Money & Securities (1) We will pay for loss of "money' and "securities" used in your business while at a bank or savings Institution, within , your living quarters or the living quarters of your partners or any "employee" having use and custody of the property, at the described premises, or in transit between any of these places, resulting directly from: (a) "Theft ", meaning any act of stealing; (b) Disappearance; or (c) Destruction. (2) 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 Inside the Premises for 391 -1003 06 09 17,963 ri,�� Hanover Insurance Group - OB39898815 1001051 "money" and "securities" while: (i) In or on the described premises; or (ii) Within a bank or savings institution in the coverage territory; and (b) $5,000 or the amount shown in the Additional Property Coverage Schedule Outside the Premises for "money" and "securities" while at any other location listed in (1) above and while in the coverage territory. This additional coverage is not subject to the Limits of Insurance Section I - Property. (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 ". (4) You must keep records of all "money' and "securities" so we can verify the amount of any loss or damage. (5) Special Money and Securities Exclusion We will not pay for loss or damage: (a) Resulting from accounting or arithmetical errors or omissions; (b) Due to giving or surrendering of property in any exchange or purchase; or (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. t. Tenant Signs (Tenants only) (1) When caused by or resulting from a Covered Cause of Loss, we will pay for direct physical loss of or damage to all tenant signs at the described premises: (a) Owned by you; or (b) Owned by others but In your care, custody or control. (2) 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. (3) This Additional Coverage is available only when the Named Insured is a Includes copyrighted material of Insurance Services Page 19 of 66 Office, Inc., with its permission tenant and a Limit of Insurance is goods" due to contamination shown in the Declarations Page for from the release of Business Personal Property. refrigerant, including but not (4) This Additional Coverage is not limited to ammonia. subject to the Limits of Insurance of (3) We will also pay any Section I - Properly. necessary expenses you incur u. Equipment Breakdown to reduce the amount of loss under this coverage. We will (1) We will pay for direct physical pay for such expenses to the damage to Covered Property that is extent that they do not exceed the direct result of an "accident ". If an the amount of loss that initial "accident" causes other otherwise would have been "accidents ", all will be considered one payable under this coverage. "accident ". All "accidents" that are the result of the same event will be (4) If you are unable to replace considered one "accident ". perishable goods" before its anticipated sate, the amount (2) The following coverages also apply to of our payment will be the direct result of an "accident ". determined on the basis of the These coverages do not provide sales price at the time of the additional amounts of Insurance, "accident ", less discounts and (a) Expediting Expenses, expenses you otherwise With respect to your damaged would have had. Otherwise, Covered Property, we will pay, up our payment will be to $50,000, the reasonable extra determined in accordance cost to: with the Loss Payment Condition. 1) Make temporary repairs; and The most we will pay for loss or 2) Expedite permanent repairs or damage under this coverage is permanent replacement. $50,000. (b) "Hazardous Substances ". (d) Data Restoration. We will pay for the additional cost We will pay for your cost to to repair or replace Covered research, replace and restore data, Property because of a including programs and operating contamination by a "Hazardous systems, that is lost or corrupted Substance ". due to an "accident ". The most we This includes the additional costs will pay for loss or expense under to clean up or dispose of such this coverage, Is $50,000. property. This does not include (e) Mold. contamination of "perishable 1) The coverage described below goods" by refrigerant, including applies only If reasonable but not limited to ammonia, which means were used to save and is addressed in (c) Spoilage preserve the property from below. Additional costs mean further damage at the time of those beyond what would have and after the accident ". been required had no "hazardous substance" been involved. The 2) We will pay for loss, damage most we will pay for loss, or expense caused by "mold" damage or expense under this only when "mold" is the direct coverage, including actual loss of result of an "accident" that Business Income you sustain, and occurs during the policy necessary Extra Expense you period. As used in this incur is $50,000. coverage, the term loss, (c) Spoilage, damage or expense means: (1) We will pay for physical (I) Direct physical loss or damage to your "perishable damage to Covered goods" due to spoilage. Property caused by mold" including the (2) We will also pay for physical cost of removal of the damage to your "perishable "mold "; 391- 1003 06 09 Includes copyrighted material of Insurance Services Page 20 of 66 17,964 Office, Inc. with its permission Hanover insurance Group. OB39898815 1001051 (it) The cost to tear out made or offered a refund. and replace any (b) Jurisdictional Inspections. If any Covered Property as property that is "covered needed to gain access equipment" under this Additional to the "mold" and Coverage requires Inspection to (iii) The cost of testing comply with state or municipal performed after boiler and pressure vessel removal, repair, regulations, we agree to perform replacement or such inspection on your behalf, restoration of the We do not warrant that conditions damaged property is are safe or healthful. completed, provided (c) Environmental, Safety and there is a reason to Efficiency Improvements. If believe that "mold" is "covered equipment" requires present, replacement due to an 3) The most we will pay for loss, "accident ", we will pay your damage or expense under this additional cost to replace with coverage, including actual loss equipment that is better for the of Business Income you sustain environment, safer or more and necessary Extra Expense efficient than the equipment you incur, is $15,000. Regardless being replaced. However, we will of the number of claims, this not pay more than 125/0 of what limit is the most we will pay for the cost would have been to the total of all loss, damage or repair or replace with like kind expense arising out of all and quality. This condition does "accidents" that take place not increase any of the applicable within the 12 -month period limits. This condition does not (starting with the beginning of apply to any property to which the present annual policy Actual Cash Value applies. period). With respect to a (4) Special Equipment Breakdown particular "accident" that results Exclusion in "mold ", we will not pay for a) We will not pay for loss, damage more than a total of $15,000 or expense caused by or resulting even if the "mold" continues to from: be present or active, or recurs, in a later policy period. 1) Any defect, programming error, programming limitation, (3) Conditions "computer virus ", malicious (a) Suspension. When any "covered code, loss of "data records ", equipment" is found to be in, or loss of use, loss of exposed to, a dangerous functionality or other condition condition, any of our within or involving "data representatives may immediately records" or "electronic data" suspend the insurance against of any kind. But if an loss from an "accident" to that "accident" results, we will pay "covered equipment". We can do for that resulting loss, damage this by mailing or delivering a or expense; written notice of suspension to 2) Any of.the following tests: your address as shown in the (i) A hydrostatic, Declarations, or at the address pneumatic where the equipment is located. or gas pressure test of Once suspended in this way, your any boiler or pressure Insurance can be reinstated only vessel; or by an endorsement for that (ii) An insulation breakdown "covered equipment". If we test of any type of suspend your insurance, you will electrical equipment, get a pro rata refund of premium 3) Loss caused by your failure to for that covered equipment ". use due diligence and But the suspension will be dispatch all reasonable means effective even if we have not yet 391 - 1003 06 09 Includes copyrighted material of Insurance Services Page 21 of 66 Office, Inc. with its permission 17,965 to resume business; or (c) the property of your "employees ". 4) Any increase in loss resulting Damage to the property of your from an agreement between "employees" Is limited to while on the you and your customer or described premises. supplier. b) We do not pay for loss, damage or (3) This coverage only applies to any one expense caused by or indirectly tool or piece of small equipment with an actual cash value of $2,500 or less, by the following, whether or not unless listed on a schedule included caused by or resulting from an "accident with the policy. ": the presence, growth, proliferation, spread or activity of (4) The most we will pay for any loss "mold ". This includes, but is not under this Additional Coverage is limited to, costs arising from $5,000 per "occurrence ", or the clean up, removal or abatement of amount shown in the Additional such "mold ". However, if such Property Coverage Schedule, but not "mold" results in an "accident ", more than $1,000 for any one tool and we will pay the resulting loss, not more than $2,500 for any one tool damage or expense caused by box or piece of small equipment, that "accident ". This exclusion (5) This Additional Coverage is not does not apply: subject to the Limits of Section I - 1) To spoilage of any personal Property. property that is "perishable (6) In addition to items listed within goods" to the extent that Properly Not Covered, we will not pay spoilage is covered under for any loss to the following property: Spoilage Coverage; or (a) Watercraft or watercraft parts and 2) To the extent that coverage is 9 equipment; provided under I Mold Coverage in this Equipment (b) Commercial tools and small Breakdown Additional equipment that are permanently Coverage. mounted to a vehicle, including trailers; c) We will not pay under this (c) Tires or tire tubes, attached or Additional Coverage for any loss or damage to animals, land or unattached, for use with lawns. Commercial tools and small equipment, unless the loss or The most we will pay for loss, damage or damage is caused by "theft ", expense under this Additional Coverage is malicious mischief, or the result the applicable Limit of Insurance shown in one of a "specified cause of loss "; the Declarations. This Additional or Coverage does not provide an additional (d) Any amount of insurance. property while underground, airborne or waterborne. v. Commercial Tools and Small Equipment (7) Exclusions 6.1.1b, and B.1.g, do not (1) This Additional Coverage is available apply to this Additional Coverage. only when a Limit of Insurance is (B) Special Commercial Tools and Small shown in the Declarations for Equipment Exclusion Business Personal Property. the will not pay for any loss caused (2) When caused by or resulting from a by or resulting from: Covered Cause of Loss, we will pay for direct physical loss of or damage (a) Any repair, adjusting, servicing, to commercial tools and small testing or maintenance process equipment including communication unless fire or explosion ensues, devices and diagnostic equipment then only for the loss caused by usual to your business "operations" such ensuing fire or explosion; which are: (b) "Theft" from an unattended (a) your property vehicle including loss: (b) the property of others In your (1) From inside a vehicle, care, custody or control or including trailers; or from a permanentiy-mounted toolbox; 391 -1003 06 09 Includes copyrighted material of Insurance Services Page 22 of 66 17,966 Office, Inc. with Its permission except when (a) securely locked, (b) there is visible evidence that entry was forced, and (c) when Inside a vehicle or trailer, that its windows were fully closed; or (2) While items are placed on the exterior of an unattended vehicle (including trailers) unless the Item: (a) was secured, (b) was protected by privacy locks and (c) there is visible evidence that removal was accomplished by force. w. Installation (1) This coverage applies to an installation performed by you for others away from the described premises. When caused by or resulting from a Covered Cause of Loss, we will pay for direct physical loss to - materials; supplies, machinery, fixtures and equipment -that will become a permanent part of your installation, while located at a site of installation, in transit by you to or from your premises and the job site, or while in temporary storage awaiting installation. This includes your property and similar property of others that is in your care, custody and control. (2) This Additional Coverage is available only when a Limit of Insurance is shown in the Declarations for Business Personal Property. (3) The most we will pay for any loss under this Additional Coverage is $5,000. (4) We will not pay for loss or damage to property that has already been Installed, whether or not your work has been accepted. (5) Exclusions B.1.b. and B.1.g, do not apply to the Additional Coverage. This Additional Coverage does not increase the Limits of Insurance of Section I - Property. x. Fine Arts (1) When caused by or resulting from a Covered Cause of Loss, we will pay for direct physical loss to "fine arts" r�lf Hanover -4 Insurance Group.. OB39898816 1001051 which are your property or the property of others in your care, custody or control while on the described premises, while on public exhibition or while in transit. (2) 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. (3) This Additional Coverage is not subject to the Limits of Insurance of Section I - Property. (4) Exclusions B.1.e., 2.a., and 2.j.(4) do not apply to this Additional Coverage. (5) 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, chinaware and similar fragile property, however caused. But we will pay if the loss or damage Is caused directly by a "specified cause of loss ", earthquake or flood. (b) Any repairing, restoration or retouching of the "fine arts ". y. Fences and Walls (1) When caused by or resulting from a Covered Cause of Loss, we will pay for direct physical loss to fences or walls whether or not attached to buildings or other structures, which you own at the described premises. (2) This Additional Coverage is available only when a Limit of Insurance is shown In the Declarations for Buildings. (3) The most we will pay for any loss under this Additional Coverage is $2,500. (4) This Additional Coverage is not subject to the Limits of Insurance of Section 1 - Property. (5) We will not pay for loss or damage to retaining walls that are used, in whole or in part, to contain water. z. Salesperson's Samples (1) When caused by or resulting from a Covered Cause of Loss, we will pay for direct physical loss to samples of your "stock" in trade (Including containers) while: (a) In the custody of your sales 391 -1003 06 09 Includes copyrighted material of Insurance Services Page 23 of 66 17,967 Office, Inc.. With its permission representative, agent or any "employee" who travels with sales samples; (b) In your custody while you are acting as a sales representative; or (c) In transit between premises that you own, lease or operate and your sales representative. (2) The most we will pay for any loss under this Additional Coverage is $5,000 per "occurrence ". This Additional Coverage is not subject to the Limits of Insurance of Section I - Property. (3) We will not pay for any loss to the following property: (a) Property which has been sold; (b) Jewelry, precious or semi-precious stones, gold, silver, platinum, or other precious metals or alloys; (c) Furs, fur garments or garments trimmed with fur; or (d) Any property while waterborne (4) Exclusions B.2.e., B.2.j.(4), and B.2.j.(6) (a) and (b) do not apply to this Additional Coverage. (5) special Salesperson's Samples Exclusion We will not pay for any loss or damage caused by "theft" from an unattended vehicle Including: (a) Loss from inside a vehicle, including trailers, or from a permanently - mounted exterior toolbox except when: (1) securely locked, (2) there is visible evidence that entry was forced, and (3) when inside a vehicle or trailer, that its windows were fully closed; or (b) While Items are placed on the exterior of an unattended vehicle (Including trailers) unless the item: (1) was secured, (2) was protected by privacy locks and (3) there is visible evidence that removal was accomplished by force. This Additional Coverage is not subject to the Limits of Insurance of Section I - Property. aa. Leasehold Interest (Tenant's 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 on account of the same covered cause of loss is: (a) If your lease is cancelled and either: (1) Your landlord allows you to continue to use your premises under a new lease not to exceed the prevailing lease rate, or (2)'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; (c) Nothing If there is no written or legally binding lease, whichever is less. (3) The following provisions apply to (2)(a)(1) and (2) 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 premises. (4) The following provision applies to (2)(a) & (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. 391. 1003 06 09 Includes copyrighted material of Insurance Services Page 24 of 66 17,968 Office, Inc. with Its permission (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 the suspension, lapse or cancellation of any license. This Additional Coverage Is not subject to the Limits of Insurance of Section I - Property. bb. 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 any 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 under this Additional Coverage, we will pay for reasonable legal expenses incurred in that defense. (5) The most we will pay for any loss including legal expenses, under this Additional Coverage is $5,000. This Additional Coverage is not subject to the Limits of Insurance of Section I - Property. cc,. Utility Services (1) We will pay for loss of or damage to Covered Property caused by the interruption of service to the described premises. The interruption must result from direct physical loss or damage by S Hanover Insurance Croup,. OB3 9898815 1001051 a Covered Cause of Loss to property not on the described premises that provides the services shown below in paragraph (3). The most we will pay for any loss under this Additional Coverage is $10,000. (2) We will pay for loss of Business Income, not including Extended Business Income, or Extra Expense 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 below in paragraph (3). We will only pay for loss you sustain after the first 24 hours following the direct physical loss or damage to the property described above. The most we will pay for any loss under this Additional Coverage is $5,000. (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 property supplying communication services, including telephone, radio, microwave or television services to the described premises, such as: (i) Communication transmission lines, including optic fiber transmission lines; (ii) Coaxial cables; and (iii) Microwave radio relays except satellites. It does not include overhead transmission lines or overhead distribution lines. (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, 391. 1003 06 09 Includes copyrighted material of Insurance Services Page 25 of 66 17,969 Office, Inc. with its permission But does not Include overhead a "computer virus" or by "computer transmission lines, overhead hacking ". distribution lines, overhead (2) We cover corruption, distortion, transformers or any other deletion, damage or destruction of overhead service equipment or your "electronic data" caused by or similar (however mounted and resulting from a "computer virus" or whatever mounted upon) by "computer hacking ". equipment. (3) We do not cover: The definitions of Business Income (a) Loss of proprietary use of any and Extra Expense contained in the "electronic data" that have been Business Income and Extra copied, scanned or altered; Expense Additional Coverages also apply to this Utility Services (b) Loss of or reduction In economic Additional Coverage. or market value of any "electronic data" that have been copied, dd. Deferred Payments scanned or altered; (1) We will pay for your interest in (c) Theft from your "electronic data" lost or damaged Personal of confidential Information through Property sold by you under a the observation of the "electronic conditional sale or trust data" by accessing covered agreement or any installment or "hardware" or your computer deferred payment plan after network without any alteration or delivery to buyers. The loss or other physical loss or damage to damage must be caused by a the records or programs. Covered Cause of Loss. Confidential information includes, (2) The most we will pay for loss but is not limited to, customer under this Additional Coverage is Information, processing methods $5,000. When a total loss to that or trade secrets; or property occurs, deferred (d) Unauthorized transfer of funds payments are valued on the from an account owned by you or amount shown on your books as In which you have an interest due from the buyer. When a caused in whole or in part by partial loss to that property "computer hacking ", a "computer occurs and the buyer refuses to virus ", or other malicious continue payment, forcing you to intrusion into a computer system repossess, deferred payments or network wherever located. are valued as follows: (4) Special Computer Virus or Computer (a) If the realized value of the Hacking Exclusions repossessed property Is greater than or equal to the Except as provided under Additional amount shown on your books Coverage Computer Virus or as due from the buyer, we will Computer Hacking, we do not pay for: make no payment; but (a) Any direct or indirect loss or (b) If the realized value of the damage; or repossessed property is less (b). Loss of access, loss of use or than the amount shown on loss of functionality; or your books as due from the (c) Consequential loss buyer, we will pay the difference, caused by a "computer virus" or by When loss occurs and the buyer "computer hacking ". continues to pay you, there will be no (5) The most we will pay for loss of or loss payment. damage to computer "hardware" or This Additional Coverage is not "software" In any one occurrence subject to the Limits of Insurance of under this Additional Coverage l The most we for all l Section I - Property. cover . pay covered losses to computer ea. Virus and Hacking Coverage "hardware" or "software" under this (1) We cover direct loss to covered Additional Coverage during each "hardware" and "software" caused by separate 12 -month period of this 391 -1003 06 09 Includes copyrighted material of Insurance Services Page 26 of 66 17,970 Office, Inc. with Its permission policy is $10,000. (6) The most we will pay under this Additional Coverage -Virus and Hacking for all loss or damage sustained in any one policy year, regardless of the number of occurrences of loss or damage or the number of premises, locations or computer systems involved, is $10,000, unless a higher Limit of Insurance is shown In the Declarations. If loss payment on the first occurrence does not exhaust this amount, then the balance is available for subsequent loss or damage sustained in, but not after, that policy year. With respect to an occurrence which begins in one policy year and continues or results in additional loss or damage In a subsequent policy year(s), all loss or damage is deemed to be sustained in the policy year in which the occurrence began. This Additional Coverage is not subject to the Limits of Insurance Section I - Property. ff. Interruption Of Computer Operations This Additional Coverage is only available if Business Income is covered under this policy. (1) Subject to all provisions of this Additional Coverage, you may extend the insurance that applies to Business Income and Extra Expense to apply to a necessary suspension of "operations" caused by an interruption in computer operations due to destruction or corruption of "software" or "electronic data" due to a Covered Cause of Loss. (2) With respect to the coverage provided under this Additional Coverage, the Covered Causes of Loss include "computer virus" and "computer hacking ". (3) The most we will pay under this Additional Coverage - Interruption Of Computer Operations for all loss sustained and expense incurred in any one policy year, regardless of the number of interruptions or the number of premises, locations or computer systems involved, is $10,000 unless a higher Limit of Insurance is shown in the Declarations. If loss payment relating to the first interruption does not exhaust this amount, then the imp Hanover insurance Group. OB39898815 1001051 balance is available for loss or expense sustained or incurred as a result of subsequent Interruptions in that policy year. A balance remaining at the end of a policy year does not increase the amount of insurance in the next policy year. With respect to any interruption which begins in one policy year and continues or results in additional loss or expense in a subsequent policy year(s), all loss and expense is deemed to be sustained or incurred in the policy year in which the interruption began. (4) This Additional Coverage - Interruption Of Computer. Operations does not apply to loss sustained or expense incurred after the end of the "period of restoration ", even if the amount of insurance stated in (3) above has not been exhausted. (5) Coverage for Business Income does not apply when a suspension of "operations" is caused by destruction or corruption of "electronic data ", or any loss or damage to "electronic data ", except as provided under Paragraphs (1) through (4) of this Additional Coverage. (6) Coverage for Extra Expense does not apply when action is taken to avoid or minimize a suspension of "operations" caused by destruction or corruption of "electronic data ", or any loss or damage to "electronic data ", except as provided under Paragraphs (1) through (4) of this Additional Coverage. 6. Coverage Extensions In addition to the Limits of Insurance of Section I - Property, you may extend the insurance provided by this policy as provided below. Except as otherwise provided, the following Extensions apply to property located in or on the building described in the Declarations or in the open (or in a vehicle) within 1000 feet of the described premises. a. Newly Acquired Or Constructed Property (1) Buildings If this policy covers Buildings, you may extend that Insurance to apply to: (a) Your new buildings while being built on the described premises; and (b) Buildings you acquire at premises other than the one described, Intended for: 391 -1003 06 09 Includes copyrighted material of Insurance Services Page 27 of 66 17,971 Office, Inc. with Its permission (i) Similar use as the building described in the Declarations; or (II) Used as a warehouse. The most we will pay for loss or damage under this Extension Is $1,000,000 at each building. (2) Business Personal Property (a) If this policy covers Business Personal Property, you may extend that Insurance to apply to: (1) Business Personal Property, including such property that you newly acquire, at any location you acquire; or (2) 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; or (3) Business Personal Property that you newly acquire, located at the described premises. (b) This Extension does not apply to: (1) Personal Property that you temporarily acquire in the course of installing or performing work on such property or in the course of your wholesaling, manufacturing, warehousing or trucking activities; or (2) Personal property of others that is temporarily in your possession in the course of installing or performing work on such property. (c) This Insurance may not be used to otherwise increase your Business Personal Property limit. In particular, it does not apply to personal property you acquire as part of your usual and customary business dealings whether or not such acquisition was related to anticipated seasonal demands. Under the terms of this policy, such property Is not considered newly acquired, but falls within the provisions for Business Personal Property. The most we will pay for loss or damage under this Extension is $500,000 at each premises. (3) Business Income and Extra Expense (a) 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 premises. (4) Period Of Coverage With respect to Insurance on or at each newly acquired or constructed property, coverage will end when any of the following first occurs: (a) This policy expires; (b) 60 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) You may extend the Insurance that applies to Business Personal Property to apply to covered Business Personal Property, other than "money" and "securities ", "valuable papers and records ", accounts receivable, property of others, signage, contractor's tools or commercial tools and small equipment, while temporarily at a premises or situated at a properly you do not own, lease or operate. (2) We will also provide coverage for Business Personal Property Off Premises while at a location rented on a short-term basis such as a temporary storage facility, (including property stored in the open at a trade show or craft fair) for a period not to exceed 28 consecutive days. 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) This coverage extends only to off premises property located or stored within fully enclosed buildings. It does not extend to property in the open except for property in the open at trade shows or craft fairs. Property located or stored within temporary structures (such as tents, tarps or 391 - 1003 06 09 Includes copyrighted material of Insurance Services Page 28 of 66 17,972 Office, Inc. with Its permission � rn< • Hanover insurance Group,. 0639898815 1001051 similar enclosed by canvas, plastics or The most we will pay for loss or damage comparable- whether manufactured or under this Extension is $5,000 at each makeshift) is considered to be stored described premises. in the open and not insured under this e. Valuable Papers And Records provision. This limitation applies even if such (1) You may extend the insurance that storage was temporary such as applies to Business Personal Property overnight. to apply to direct physical loss or damage to "valuable papers and (4) This coverage does not apply to records" that you own, or that are in property while In transit. your care, custody or control caused c. Outdoor Property by or resulting from a Covered Cause (1) You may extend the insurance of Loss. This Coverage Extension provided by this policy to apply to includes the cost to research, replace 'restore your radio and television antennas or the lost information on (including satellite dishes). "valuable papers and records" for which duplicates do not exist. (2) In addition, when the Declarations (2) This Coverage Extension does not indicate Buildings are covered property, you may extend coverage apply to: on your premises to trees, shrubs and (a) Property held as samples or for plants. delivery after sale; (3) Debris removal expense is also (b) Property In storage away from the provided for any of the above when premises shown in the loss Is caused by, or results from, any Declarations; or of the following causes of loss: (c) Additional Coverages 5.u. (a) Fire; Equipment Breakdown. (b) Lightning; (3) The most we will pay under this (c) Explosion; Coverage Extension for loss or damage to "valuable papers and (d) Riot or civil commotion; records" in any one "occurrence" at (e) Aircraft; the described premises is $25,000, (f) Windstorm; or unless a higher Limit of Insurance for "valuable papers and records is (g) Ice, snow, sleet and hail. shown in the Additional Property (4) The most we will pay for loss or Coverage Schedule. damage under this Extension is For "valuable papers and records" not $5,000, but not more than $1,000 for at the described premises, the most any one tree, shrub or plant, or $2,000 we will pay is $5,000. for any one antenna or satellite dish. (4) Paragraph B. Exclusions in Section I - (5) The coverage and Limits of Liability Property does not apply to this provided within this Coverage Coverage Extension except for: Extension represents the total (a) Paragraph 8.1.c., Governmental amounts collectible for the above Action; items, including debris removal expense, in the event of loss. (b) Paragraph BATA., Nuclear Hazard; d. Personal Effects (c) Paragraph 131.1.f., War And Military You may extend the insurance that applies Action; to Business Personal Property to apply to (d) Paragraph 8.2.d., Dishonesty; personal effects owned by you, your (e) Paragraph B.2.e., False Pretense; officers, your partners or "members ", your and "managers" or your "employees ". This (f) Paragraph B.3. extension does not apply to: (1) Tools or equipment used in your f. Accounts Receivable business; (1) You may extend the insurance that (2) Employees tools and small equipment; applies to Business Personal Property to apply to accounts receivable. We or will pay: (3) Loss or damage by "theft ". 391 -1003 06 09 Includes copyrighted material of Insurance Services Page 29 of 66 17,973 Office, Inc. with its permission (a) All amounts due from your resulting from bookkeeping, customers that you are unable to accounting or billing errors or collect; omissions. (b) Interest charges on any loan (c) Any loss or damage that requires required to offset amounts you are any audit of records or any unable to collect pending our inventory computation to prove its payment of these amounts; factual existence. (c) Collection expenses in excess of g. Key Replacement and Lock Repair your normal collection expenses You may extend the insurance provided that are made necessary by loss or under this Coverage Form to apply to loss damage; and or damage, caused by or resulting from a (d) Other reasonable expenses that covered "theft" loss for the cost incurred you incur to re- establish your for: records of accounts receivable; (1) Replacement of keys If they are stolen; that result from direct physical loss or (2) Lock repair; or damage by any Covered Cause of Loss (3) Rekeying or replacing lock sets when to your records of accounts receivable, the building security has been (2) The most we will pay under this compromised. Coverage Extension for loss or damage The most we will pay under this Extension in any one "occurrence" at the is $1,000. The Deductible does not apply described premises is $25,000, unless to this Extension. a higher Limit of Insurance for accounts receivable is shown in the h. Garages, Storage Buildings and Other Additional Property Coverage Appurtenant Structures Schedule. You may extend the insurance that applies For accounts receivable not at the to Building to apply to garages, storage described premises, the most we will buildings and other appurtenant pay is $5,000. structures, Including, but not limited to, swimming pools; spas; and the associated (3) Paragraph B. Exclusions In Section I - equipment within 1000 feet of the Property does not apply to this described premises. Coverage Extension except for: The most we will pay for loss or damage (a) Paragraph B.1.c., Governmental under this Extension is $10,000 at each Action; described premises regardless of the (b) Paragraph B.1.d., Nuclear Hazard; number of buildings or structures affected. (c) Paragraph B.1.f., War And Military I. Personal Property in Transit Action; (1) You may extend the insurance that (d) Paragraph B.2.d., Dishonesty; applies to Business Personal Property (e) Paragraph B.2.e., False Pretense; to apply to your property or property and of others you have picked up from others, or property of others which (i) Paragraph 8.3. you are delivering. This Extension (4) Accounts Receivable Special Exclusion applies to property while it is in We will not pay for: transit more than 1,000 feet from the described premises and while (a)Loss or damage caused by or between points in the Coverage resulting from alteration, Territory while: falsificatlon, concealment or (a) vehicle owned, leased or destruction of records of accounts operated by you; or o receivable done to conceal the wrongful giving, taking or (b) In the custody of a common withholding of "money ", carrier, contract carrier or "securities" or other property. registered mail carrier. This exclusion applies only to the (2) We do not pay for any loss or damage extent of the wrongful giving, caused by or resulting from "theft" taking or withholding. from an unattended vehicle, Including (b) Loss or damage caused by or loss: 391 -1003 06 09 Includes copyrighted material of Insurance Services Page 30 of 66 17,974 Office, Inc. with Its permission (a) From inside. a vehicle, including trailers; or from an exterior storage container or box, except when: (1) securely locked, (2) there is visible evidence that entry into the vehicle was forced, and (3) inside a vehicle or trailer, that its windows were fully closed; or (b) While items are placed on the exterior of an unattended vehicle (including trailers) unless the item: (1) was secured, (2) was protected by privacy locks and (3) there is visible evidence that removal was accomplished by force. (3) This Extension does not apply to the following property: (a) Shipments that belong to others that you are transporting for a fee; (b) Property while waterborne; (c) Live animals; or (d) Salespersons samples (4) Exclusions B.1.b., and B.1.g. do not apply to this Coverage Extension. (5) The most we will pay for loss or damage under this Extension is $5,000. ). Inventory and Loss Appraisal (1) We will pay for all reasonable expenses you incur at our request to assist us in: (a) The investigation of a claim; (b) The determination of the amount of loss, such as taking Inventory; or (c) The cost of preparing specific loss documents and other supporting exhibits. (2) The most we will pay for expenses under this Extension Is $10,000. (3) The Deductible does not apply to these expenses. (4) Special Inventory and Loss Appraisal Exclusion We will not pay for: (a) Expenses incurred. to perform your ri,e Hanover Insurance Group. OB39898816 1001051 duties in the event of a loss under Section I - E. Property Loss Conditions; (b) Expenses to prove that loss or damage is covered; (c) Expenses billed by and payable to independent or public adjusters; attorneys; or any of their affiliated or associated entities; (d) Expenses to prepare claims not covered by this Coverage Form; or (e) Expenses incurred under any appraisal provisions within the policy. 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. These exclusions apply whether or not the loss event results in widespread damage or affects a substantial area. a. Ordinance Or Law (1) The enforcement of any ordinance or law: (a) Regulating the construction, use or repair of any property; or (b) Requiring the tearing down of any property, including the cost of removing its debris. (2) This exclusion, Ordinance Or Law, applies whether the loss results from: (a) An ordinance or law that is enforced even if the property has not been damaged; or (b) The increased costs incurred to comply with an ordinance or law in the course of construction, repair, renovation, remodeling or demolition of property or removal of its debris, following a physical loss to that property. This exclusion does not apply to the Ordinance or Law Additional Coverage. b. Earth Movement (1) Earthquake, including 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 391- 1003 06 09 Includes copyrighted material of Insurance Services Page 31 of 66 17,975 Office, Inc. with its permission mining activity has ceased; (4) Earth sinking (other than sinkhole collapse), rising or shifting including soil conditions which cause settling, cracking or other disarrangement of foundations or other parts of realty. Soil conditions include contraction, expansion, freezing, thawing, erosion, improperly compacted soil and the action of water under the ground surface. But if Earth Movement, as described in Paragraphs (1) through (4) above, results in fire or explosion, we will pay for the loss or damage caused by that fire or explosion. (5) Volcanic eruption, explosion or effusion. But if volcanic eruption, explosion or effusion results in fire, building glass breakage or volcanic action, we will pay for the loss or damage caused by that fire, building glass breakage or volcanic action. Volcanic action means direct loss or damage resulting from the eruption of a volcano when the loss or damage is caused by: (a) Airborne volcanic blast or airborne shock waves; (b) Ash, dust or particulate matter; or (c) Lava flow. All volcanic eruptions that occur within any 168-hour period will constitute a single "occurrence ". Volcanic action does not Include the cost to remove ash, dust or particulate matter that does not cause direct physical loss of or damage to Covered Property. 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 policy. 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 391 -1003 06 09 17,976 by that fire. e. Power Failure The failure of power or other utility service supplied to the described premises, however caused, if the failure occurs away from the described premises. But if the failure of power 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. This exclusion does not apply to loss or damage to "computer(s)" and "electronic data" or to the Utility Services Additional Coverage. 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 paragraph 1., 3. or 4., or material carried or otherwise moved by mudslide or mudflow. This exclusion applies regardless of whether any of the above, in paragraphs Includes copyrighted material of Insurance Services Page 32 of 66 Office, Inc. with its permission (1). through (5)., Is caused by an act of nature or is otherwise caused. An example of a situation to which this exclusion applies is the situation where a dam, levee, seawall or other boundary or containment system fails in whole or in part, for any reason, to contain the water. But if Water, as described in Paragraphs (1) through (5), results in fire, explosion or sprinkler leakage, we will pay for the loss or damage caused by that fire, explosion or sprinkler leakage. If electrical "covered equipment" requires drying out because of B.1.g(1) through B.I. g (5), 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. In. Certain Computer - Related Losses (1) The failure, malfunction or inadequacy of: (a) Any of the following, whether belonging to any insured or to others: (t) "Computer" hardware, including microprocessors or other "computer equipment" as may be described elsewhere in this policy; (it) "Computer" application software or other "electronic data" as may be described elsewhere in this policy; (iii) "Computer" operating systems and related software; (iv) "Computer" networks; (v) Microprocessors ( "computer" chips) not part of any "computer" system; or (vi) Any other computerized or electronic equipment or components; or (b) Any other products, and any services, data or functions that directly or indirectly use or rely upon, in any manner, any of the items listed in Paragraph (a) above; due to the inability to correctly recognize, distinguish, interpret or accept one or more dates or times. An example is the inability of computer software to recognize the year 2000. (2) Loss caused by or resulting from "computer virus" or "computer hacking" except as provided for in the Additional Coverage - Computer Virus 4 T1. Hanover Insurance Croup.. 0639898815 1001051 or Hacking. (3) Loss or expense created, by the inadequacy, incompatibility or any other dysfunctional characteristic of associated property including but not limited to "computer equipment ", "data records ", "electronic data ", "hardware" or "software ". Such consequential loss (including loss of use) does not qualify as direct physical loss or damage as insured against In this policy. (4) Any advice, consultation, design, evaluation, inspection, installation, maintenance, repair, replacement or supervision provided or done by you or for you to determine, rectify or test for, any potential or actual problems described In the paragraphs above. However, if excluded loss or damage, as described in the paragraphs above results in a "Specified Cause of Loss" or "accident" under Section I - Property, we will pay only for the loss or damage caused by such "Specified Cause of Loss" or "accident". We will not pay for repair, replacement or modification of any items in the paragraphs above, to correct any deficiencies or change any features. 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 acts by you, anyone else with an interest In the property, or any of your or their partners, "members ", officers, "managers ", "employees ", 391 - 1003 06 09 Includes copyrighted material of Insurance Services Page 33 of 66 17,977 Office, Inc. with its permission directors, trustees, authorized representatives or anyone to whom you entrust the property for any purpose: (1) Acting alone or in collusion with others; (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 except as provided under Employee Dishonesty Additional Coverage. With respect to accounts receivable and "valuable papers and records ", this exclusion does not apply to carriers for hire. 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. L Exposed Property Rain, snow, ice or sleet to personal property in the open. g. Collapse Collapse, including any of the following conditions of property or any .part of the property: (1) An abrupt falling down or caving in; (2) Loss of structural integrity, including separation of parts of the property or property in danger of falling down or caving in; or (3) Any cracking, bulging, sagging, bending, leaning, settling, shrinkage or expansion as such condition relates to (1) or (2) 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. This exclusion, g., does not apply: (a) To the extent that coverage is provided under the Additional Coverage - Collapse; or (b) To collapse caused by one or more of the following: (i) The "specified causes of loss" . (ii) Breakage of building glass; (iii) Weight of rain that collects on a roof; or (iv) Weight of people or personal property h. Pollution. We will not pay for loss or damage caused by or resulting from the discharge, dispersal, seepage, migration, release or escape of "pollutants" unless the discharge, dispersal, seepage, migration, release or escape Is Itself caused by any of the "specified causes of loss ". But if the discharge, dispersal, seepage, migration, release or escape of "pollutants" results in a "specified cause of loss ", we will pay for the loss or damage caused by that "specified cause of loss ". 1. 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; mechanical breakdown (except as provided for in the Equipment Breakdown Additional Coverage); (2) Rust, corrosion, fungus, decay, deterioration, depletion, erosion or other gradually developing condition; 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) Marring or scratching of personal property, (7) The following causes of loss to personal property: (a) Dampness or dryness of the atmosphere; (b) Changes in or extremes of temperature. But if an excluded cause of loss that is listed in Paragraphs (1) through (n above results in a "specified cause of loss ", "accident" or building glass breakage, we will pay for the loss or damage caused by that "specified cause of loss ", "accident" or building glass breakage. k. Computer Related Errors or Omissions 391- 1003 06 09 Includes copyrighted material of Insurance Services Page 34 of 66 17,978 Office; Inc. with its permission Computer related errors or omissions in: (1) Programming, processing or storing "electronic data" or in any "computer" operations; or (2) Processing or copying "valuable papers and records ". However, we will pay for direct physical loss or damage caused by resulting fire, "accident" 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 repair of your "computer" system including "software ". However, we will pay for direct physical loss or damage: (1) caused by resulting fire or explosion If these causes of loss would be covered by this coverage form; (2) from any such error or deficiency in design, installation, maintenance, modification, or repair that is exploited as part of an otherwise covered "computer hacking" as provided in Additional Coverage - Virus and Hacking. m. Electrical Disturbance to "Electronic Data" Electrical or magnetic injury, disturbance or erasure of "electronic data ", except as provided for under the Additional Coverages and the Coverage Extensions of Section I - Property, Equipment Breakdown, Accounts Receivable and Valuable Papers and Records. However, we will pay for direct loss or damage caused by lightning. n. Artificially Generated Electricity Artificially generated electric current including electric arcing, that disturbs electrical devices, appliances or wires except as provided for in the Additional Coverage - Equipment Breakdown. But, if artificially generated electric current results in fire, we will pay for the loss or damage caused by fire. o. Computer Processing Exclusion (1) Errors or omissions in programming or Incorrect Instructions to "hardware "; (2) Electrical or magnetic damage, disturbance of recordings or erasure of electronic recordings, except as Zk', 4 H Insurance Group.. 0 B39898815 1001051 provided under the Equipment Breakdown Additional Coverage. We will also pay for direct loss caused by lightning; (3) Mechanical breakdown or malfunction, component failure, faulty installation or blowouts; except as provided for under the Equipment Breakdown Additional Coverage; or (4) Faulty instruction or incorrect usage, Including changes in arrangements or parts. p. Loss of Warranty Loss of warranty or similar future or potential benefit even when following a covered cause of loss. (1) Loss of this type does not meet direct physical loss or damage. (2) We agree that reasonable repair or reconditioning measures be pursued to ensure soundness of property after loss or damage: (a) Where proper and adequate report or reconditioning method is debated, you and we agree to follow the usual and customary industry repair and reconditioning practices; or (b) For situations not resolved by (a) above, either party may demand that the matter be resolved through Appraisal as provided for elsewhere in the policy. q. Continuous Or Repeated Seepage Or Leakage Of Water Continuous or repeated seepage or leakage of water, or the presence or condensation of humidity, moisture or vapor, that occurs over a period of 14 days or more. 3. We will not pay for loss or damage caused by or resulting from any of the following Paragraphs a, through c. But if an excluded cause of loss that is listed in Paragraphs a. through c. results in a Covered Cause of Loss, we will pay for the loss or damage caused by that Covered Cause of Loss. a. Weather Conditions Weather conditions. But this exclusion only applies If weather conditions contribute in any way with a cause or event excluded in Paragraph B.I. above to produce the loss or damage. b. Acts Or Decisions Acts or decisions, including the failure to 391 - 1003 06 09 Includes copyrighted material of Insurance Services Page 35 of 66 17,979 Office, Inc. with its permission 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. C. Limits of Insurance 1 i11 3. The most we will pay for loss or damage in any one "occurrence" is the applicable Limit of Insurance shown In the Declarations. The limits applicable to the Coverage Extensions are in addition to the Limits of Insurance. The limits applicable to the following Additional Coverages are in addition to the Limits of Insurance: a. Fire Department Service Charge; b. Pollutant Clean -Up and Removal; c. Civil Authority; d. Money Orders and Counterfeit Paper Currency; a. Forgery and Alteration; L Ordinance or Law; g. Business Income from Dependent. Properties; h. Glass Expenses; i. Employee Dishonesty; J. Arson and "Theft" Reward; k. Computer Equipment; I. Tenant Signs; m. Fire Extinguisher Systems Recharge; n. Commercial Tools and Small Equipment o. Fine Arts; p. Fences and Walls; p. Salesperson's Samples; q. Leasehold Interest (Tenant's Only); r. Unauthorized Business Credit Card Use; s. Deferred Payments; t. Money & Securities; u. Virus and Hacking; and v. Interruption of Computer Operations. 391 - 1003 06 09 17,980 4. Building Limit - Automatic Increase If Covered Property is written on a Replacement Cost basis: a. The Limit of Insurance for Buildings will automatically be revised by changes that occurred in the cost of construction during the preceding policy year. b. The amount of increase will be determined by reports of a recognized valuation method. c. We will inform you of such adjusted values. Upon their acceptance, you agree to pay any additional premium for the adjusted limit. Payment of your renewal premium, which Includes the revised Limit of Insurance, shall constitute acceptance. d. We will pay the replacement cost value of the damaged portion of the building at the time of loss, but not more than 115% of the Limit of Insurance for Building if: (1) The amount of any loss covered by this policy exceeds the Limit of Insurance for Building stated in the Declarations for the damaged Building; and (2) The actual repair or replacement is completed within one year of the date of loss. e. The Building Limit - Automatic Increase clause will not apply if: (1) You do not accept the adjusted value; or (2) You do not inform us of changes to covered Building: (a) Within sixty (60) days of the date any additions, improvements or enlargements to the building are begun, and (b) When the replacement value of the changes are more than 5% of the Limit of Insurance for the building. 5. Business Personal Property Limit - Seasonal Increase a. The Limit of Insurance for Business Personal Property will automatically increase by 25% to provide for seasonal variations. b. This increase will apply only if the Limit of Insurance shown for Business Personal Property in the Declarations is at least 100% of your average monthly values during the lesser of: (1) The 12 months immediately preceding the date the loss or damage occurs; or Includes copyrighted material of Insurance Services Page 36 of 66 Office, Inc. with Its permission (2) The period of time you have been in business as of the date the loss or damage occurs. D. Deductibles 1. We will not pay for loss or damage in any one occurrence until the amount of loss or damage exceeds the Deductible shown in the Declarations. We will then pay the amount of loss or damage in excess of the Deductible up to the applicable Limit of Insurance of Section I - Properly. 2. No Deductible applies to the following Additional Property Coverages and Extensions of Coverage: a. Fire Department Service Charge; b. Fire Extinguisher Recharge; c. Business Income, unless a Business Income Waiting Period is shown on the Declarations Page; d. Extra Expense; e. Civil Authority; E Lock Repair and Key Replacement; g. Deferred Payment; h. Debris Removal; I. Arson and "Theft" Reward; j. ERISA Compliance; k. Preservation of Property; k. Pollutant Clean -Up and Removal; 1. Ordinance or Law; m. Leasehold Interest (tenant's only); n. Unauthorized Business Credit Card Use; o. Business Income from Dependent Properties; and p. Inventory and Loss Appraisal. 3. A $250 Deductible applies to the following Coverages: a. Glass - Interior and Exterior: and b. Glass Expenses. 4. A $500 Deductible applies to all of the Additional Property Coverages and Extensions of Coverage scheduled on the Declarations unless otherwise indicated in item 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" Dishonesty (except ERISA Compliance); b. Salesperson's Samples; c. Installation; 391 -1003 06 09 17,981 I'h¢ Hanover Insurance Group. 0 B3 98 98815 1001051 d. Personal Property off Premises; e. Personal Property in Transit. 6. 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 ". 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 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 fall 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 the Limits of Insurance of Section I - Property. However, we will not pay for any subsequent loss or damage resulting from a cause of loss that is not a Covered Cause of Loss. Also, if feasible, set the damaged property aside and in the best possible order for examination. Includes copyrighted material of Insurance Services Page 37 of 66 Office, Inc. with Its permission (5) our request, give us complete with other property of like kind and n in ventories of the damaged and quality, subject to Paragraph d.(1)(d) undamaged property. Include below, quantities, costs, values and amount of b. We will give notice of our intentions within loss claimed. 30 days after we receive the sworn proof (6) As often as may be reasonably of loss. required, permit us to inspect the c. We will not pay you more than your property proving the loss or damage financial interest in the Covered Property. and examine your books and records. d. We will determine the value of Covered Also permit us to take samples of Property as follows: damaged and undamaged property for (1) At replacement cost without deduction inspection, testing and analysis, and for depreciation except as provided in permit us to make copies from your (2) through (16) below. books and records. () Send loss (a) You may make a claim for loss or us a signed, sworn proof of damage covered by this insurance containing the information we request on an actual cash value basis to investigate the claim. You must do instead of a replacement cost basis. this within 60 days after our request. In the event you elect to have loss We will supply you with the necessary or damage settled on an actual forms. cash value basis, you may .still (8) Cooperate with us in the investigation make a claim on a replacement or settlement of the claim. cost basis If you notify us of your (9) Resume all or part of your "operations" Intent to do so within 180 days after as quickly as possible. the loss or damage. b. We may examine any insured under oath, (b) We will not pay on a replacement while not in the presence of any other cost basis for any loss or damage: insured and at such times as may be (i) Until the loss or damaged reasonably required, about any matter property is actually repaired or relating to this insurance or the claim, replaced; including an insured's books and records. (ii) Unless the repairs or In the event of an examination, an replacement are made as soon insured's answers must be si signed. g as reasonably possible after the 4. Legal Action Against Us loss or damage; and No one may bring a legal action against us (fit) Unless the repairs or under this insurance unless: replacement are completed a. There has been full compliance with all of within: the terms of this insurance; and (1) 24 months (for personal b. The action is brought within 2 years after property), the date on which the direct physical loss (2) 24 months (for buildings and or damage occurred. The 2 year other real property), limitation also applies to indirect or after the loss or damage, unless consequential loss covered under this extended in writing by us. policy. 5. Loss Payment However, if the cost to repair or replace the damaged building In the event of loss or damage covered by property is $2,500 or less, we will this policy: settle the loss according to the a. At our option, we will either: provisions of Paragraphs d.(1)(a) and (1) Pay the value of lost or damaged d.0)(b) above whether or not the property; actual repair or replacement is complete. (2) Pay the cost of repairing or replacing (c) will not pay more for loss or the lost or damaged property; damage damage on a replacement cost (3) Take all or any part of the property at, basis than the least of: an agreed or appraised value; or (i) The cost to replace, on the same (4) Repair, rebuild or replace the property premises, the lost or damaged 391 - 1003 06 09 Includes copyrighted material of Insurance Services Page 38 of 66 17,982 Office, Inc. with its permission property with other property: (1) Of comparable material and quality; and (2) Used for the same purpose; or (ii) The amount that you actually spend that is necessary to repair or replace the lost or damaged property. If a building Is rebuilt at a new location, the recoverable amount is limited to the cost which would have been incurred had the building been built at the original premises. (d) The cost to repair, rebuild or replace does not Include the increased cost attributable to enforcement of any ordinance or law regulating the construction, use or repair of any property. (2) If the Declarations indicate the Actual Cash Value applies to Building or Personal Property, Paragraph (1) above does not apply to that property. Instead, we will determine the value of that property at the actual cash value. (3) The following property at actual cash value: (a) Used or second -hand merchandise held In storage or for sale; (b) Property of others. However, if an item(s) of personal property of others is subject to a written contract which governs your liability for loss or damage to that item(s), then valuation of that item(s) will be based on the amount for which you are liable under such contract, but not to exceed the lesser of the replacement cost of the property or the applicable Limit of Insurance; (c) Household contents, except personal property in apartments or rooms furnished by you as landlord; (d) Manuscripts ; (e) Works of art, "antiques" or rare articles, including but not limited to, etchings, pictures, statuary, marbles, bronzes, porcelains, glassware and bric-a-brac; or (0 Commercial Tools and Small Equipment and Contractors Tools and Equipment. This does not apply to your Commercial Tools and Small Equipment permanently installed or exclusively used at the described Hanover Insurance Croup.. OB39898816 1001051 premises. (4) Glass at the cost of replacement with safety glazing material if required by law. (5) Tenants' Improvements and Betterments at: (a) Replacement cost if you make repairs promptly. (b) A proportion of your original cost if you, as the tenant, do not make repairs promptly. We will determine the proportionate value as follows: (i) Multiply the original cost by the number of days from the loss or damage to the expiration of the lease; and (ii) Divide the amount determined in (1) above by the number of days from the installation of improvements to the expiration of the lease. If your lease contains a renewal option, the expiration of the renewal option period will replace the expiration of the lease in this procedure. (c) Nothing if others pay for repairs or replacement. (d) Nothing if you have no lease. (6) Loss or damage to "valuable papers and records" will be valued at the cost of restoration or replacement, including the cost of data entry, reprogramming, computer consultation services and the media on which the data or programs reside. To the extent that the contents of the "valuable papers and records" are not restored, the "valuable papers and records" will be valued at the cost of replacement with blank materials of substantially identical type. (7) "Money" at its face value; and (8) "Securities" at their value at the close of business on the day the loss is discovered. (9) Applicable only to Accounts Receivable: (a) If you cannot accurately establish the amount of accounts receivable outstanding as of the time of loss or damage: (1) We will determine the total of the average monthly amounts of accounts receivable for the 12 391 - 1003 06 09 Includes copyrighted material of Insurance Services Page 39 of 66 17,983 Office, Inc. with its permission months immediately preceding the month in which the loss or damage occurs; and (ii) . We will adjust that total for any normal fluctuations in the amount of accounts receivable for the month in which the loss or damage ,occurred or for any demonstrated variance from the average for that month. (b) The following will be deducted from the total amount of accounts receivable, however that amount is established: (1) The amount of the accounts for which there is no loss or damage; (ii) The amount of the accounts that you are able to re- establish or collect; (iii) An amount to allow for probable bad debts that you are normally unable to collect; and (iv) All unearned interest and service charges. (10) "Stock" you have sold but not delivered at the selling price less discounts and expenses you otherwise would have had. (11)Finished "stock" you manufactured at selling price less discounts and expenses you otherwise would have had. (12) Property in Transit (other than "stock" you have sold) at the amount of Invoice, including your prepaid or advanced freight charges and other charges which may have accrued or become legally due since the shipment. If you have no invoice, actual cash value will apply. (13) "Electronic data ", media and computer "software" programs. For media, at the actual costs of repairing or replacing the media with material of like kind and quality. "Electronic data" and computer "software" programs at the actual cost of reproducing the "electronic data" or computer "software" program, provided you actually reproduce or replace it. To the extent that "electronic data" is not replaced or restored, the loss will be valued at the cost of repair or replacement of the media on which the "electronic data" was stored, with 391 - 1003 06 09 17.984 blank media of substantially identical type. (14)Prepackaged "software" programs and "computer equipment" that cannot be replaced, at the cost of functionally equivalent "software" or "hardware ". (15) Precious metals, such as gold, silver and platinum, at the average market cost of replacements on the date of loss, or the actual cost of the replacement, if less. (16) "Fine Arts ". The value of covered property is not agreed upon, but will be determined at the time of loss or damage. We will not pay more than the least of the following: (a) The actual cash value of the property at the time of loss or damage; or (b) The amount for which you could reasonably expect to pay to have the property . repaired to Its condition immediately prior to the loss. e. Our payment for loss of or damage to personal property of others will only be for the account of the owners of the property. We may adjust losses with the owners of lost or damaged property If other than you. If we pay the owners, such payments will satisfy your claims against us for the owners' property. We will not pay the owners more than their financial interest In the Covered Property. L We may elect to defend you against suits arising from claims of owners of property. We will do this at our expense. g. We will pay for covered loss or damage within 30 days after we receive a properly completed sworn proof of loss, provided you have complied with all of the terms of this policy, and (1) We have reached agreement with you on the amount of loss; or (2) An appraisal award has been made. h. In settling covered losses Involving a party wall, we will pay a proportion of the loss, to the party wall based on your interest in the wall In proportion to the interest of the owner of the adjoining building. A party wall is a wall that separates and is common to adjoining buildings that are owned by different parties. However, if you elect to repair or replace your building and the owner of the adjoining building elects not to repair Includes copyrighted material of Insurance Services Page 40 of 66 Office, Inc. with Its permission or replace that building, we will pay you the full value of the loss to the party wall, subject to all applicable policy provisions Including Limits of Insurance, the Valuation and all other provisions of this Loss Payment Condition. Our payment under the provisions of this paragraph does not alter any right of subrogation we may have against any entity, Including the owner or insurer of the adjoining building, and does not alter the terms of the Transfer Of Rights Of Recovery Against Others To Us Condition in this policy. 6. Recovered Property If either you or we recover any property after loss settlement, that party must give the other prompt notice. At your option, you may retain the property. But then you must return to us the amount we paid to you for the property. We will pay recovery expenses and the expenses to repair the recovered property, subject to the Limits of Insurance of Section I - Property. 7. Vacancy a. Description Of Terms (1) As used in this Vacancy Condition, the term building and the term vacant have the meanings set forth in Paragraphs (a) and (b) below: (a) When this policy is issued to a tenant, and with respect to that tenant's interest in Covered Property, building means the unit or suite rented or leased to the tenant. Such building is vacant when it does not contain enough business personal property to conduct customary operations. (b) When this policy is issued to the owner or general lessee of a building, building means the entire building. Such building is vacant unless at least 31% of its total square footage is: (i) Rented to a lessee or 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 operations. (2) Buildings under construction or renovation are not considered vacant. b. Vacancy Provisions If the building where loss or damage occurs has been vacant for more than 60 consecutive days before that loss or 391 - 1003 06 09 17,985 The Hanover Insurance Croup.. 0133 9898815 1001051 damage occurs: (1) We will not pay for any loss or damage caused by any of the following even If they are Covered Causes of Loss: (a) Vandalism; (b) Sprinkler leakage, unless you have protected the system against freezing; (c) Building glass breakage; (d) Water damage; (e) "Theft "; or (f) Attempted "theft ". (2) With respect to Covered Causes of Loss other than those listed in Paragraphs (1)(a) through (1)(0 above, we will reduce the amount we would otherwise pay for the loss or damage by 15 %. 8. Pair, Sets or Parts In case of loss of or damage to: a. Any part of a pair or set, we may: (1) Repair or replace any pair or set to its value before the loss or damage; or (2) Pay the difference between the value of the pair or set before and after the loss or damage. b. Covered Property consisting of several parts when complete, we will only pay for the value of the lost or damaged part. F. Property General Conditions 1. Control Of Property Any act or neglect of any person other than you beyond your direction or control will not affect this insurance. The breach of any condition of this Coverage Form at any one or more locations will not affect coverage at any location where, at the time of loss or damage, the breach of condition does not exist. 2. Mortgageholders a. The term mortgageholder Includes trustee. b. We will pay for covered loss of or damage to buildings or structures to each mortgageholder shown in the Declarations in their order of precedence, as interests may appear. c. The mortgageholder has the right to receive loss payment even If the mortgageholder has started foreclosure or similar action on the building or structure. d. If we deny your claim because of your Includes copyrighted material of Insurance Services Page 41 of 66 Office, Inc. with Its permission acts or because you have failed to comply with the terms of this policy, the mortgageholder will still have the right to receive loss payment if the mortgageholder: (1) Pays any premium due under this policy at our request if you have failed to do so; (2) Submits a signed, sworn proof of loss within 60 days after receiving notice from us of your failure to do so; and (3) Has notified us of any change in ownership, occupancy or. substantial change in risk known to the mortgageholder. All of the terms of this policy will then apply directly to the mortgageholder. e. If we pay the mortgageholder for any loss or damage and deny payment to you because of your acts or because you have failed to comply with the terms of this policy: (1) The mortgageholder's rights under the mortgage will be transferred to us to the extent of the amount we pay; and (2) The mortgageholder's right to recover the full amount of the mortgageholder's claim will not be impaired. At our option, we may pay to the mortgageholder the whole principal on the mortgage plus any accrued Interest. In this event, your mortgage and note will be transferred to us and you will pay your remaining mortgage debt to us. f. If we cancel this policy, we will give written notice to the mortgageholder at least: (1) 10 days before the effective date of cancellation if we cancel for your nonpayment of premium; or (2) 30 days before the effective date of cancellation if we cancel for any other reason. g. If we elect not to renew this policy, we will give written notice to the mortgageholder at least 10 days before the expiration date of this policy. 3. No Benefit To Bailee No person or organization, other than you, having custody of Covered Property will benefit from this insurance. 4. Policy Period, Coverage Territory Under Section I - Property: 391 -1003 06 09 17,986 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" means a fortuitous event that causes direct physical damage to "covered equipment ". The event must be one of the following: a. Mechanical breakdown, including rupture Includes copyrighted material of Insurance Services Page 42 of 66 Office, Inc. with its permission or bursting caused by centrifugal force; b. Artificially generated electric current, Including electric arcing, that disturbs electrical devices, appliances or wires; c. Explosion of steam boilers, steam pipes, steam engines or steam turbines owned or leased by you, or operated under your control; d. 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 e. 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. 2. "Antique" 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. "Computer" means: a. Programmable electronic equipment that Is used to store, retrieve and process data; and b. Associated peripheral equipment that provides communication, including input and output functions such as printing and auxiliary functions such as data transmission. "Computer" does not include those used to operate production type machinery or equipment. m� Hanover insurance Croup,. 0839898815 1001051 (2) alteration, contamination, corruption, degradation or destruction of the integrity, quality or performance of "software" or "electronic data "; (3) observation, scanning or copying of "electronic data "; (4) damage, destruction, inadequacy, malfunction, degradation or corruption of any "hardware" or "software" used with "hardware "; or (5) denial of access to or denial of services from your "hardware" or you computer network. 6. "Computer virus" means any malicious, self - replicating electronic data processing code or other code: a. introduced Into "hardware" or "software "; and 4. "Computer equipment" means: 7. a. computer "hardware" and related component parts. Component parts include but are not limited to modems, 9, printers, keyboards and scanners; b. computer control systems including unlnterruptable power supply systems, line conditioner and voltage regulator; and c. "software "; and d. "electronic data ". 5. "Computer hacking" means an unauthorized intrusion: a. by an individual or group of individuals, whether employed by you or not, into "hardware ", "software" or a computer network; and b. that results In but is not limited to: (1) deletion, destruction, generation or modification of "software" or "electronic data "; 391 - 1003 06 09 17,987 b. that is intended to result in, but is not limited to: (1) deletion, destruction, generation or modification of "software" or "electronic data "; (2) alteration, contamination, corruption, degradation or destruction of the integrity, quality or performance of "software" or "electronic data "; (3) damage, destruction, inadequacy, malfunction, degradation or corruption of any "hardware" or "software" used with "hardware "; or (4) denial of access from your "hardware" or your computer network. "Counterfeit" means an imitation of an actual valid original, which is intended to deceive and to be taken as the original. "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" does not include: a. structure, foundation, cabinet, compartment or air supported structure or building; b, insulating or refractory material; c. sewer piping, underground vessels or piping, or piping forming a part of a sprinkler system; d, water piping other than boiler feedwater piping, boiler condensate return piping or water piping forming a part of a refrigerating or air conditioning system; e. draglines, excavation equipment or Includes copyrighted material of Insurance Services Page 43 of 66 Office, Inc. with its permission construction equipment; vehicle, (meaning any machine or apparatus that Is used for transportation or moves under its own power) or any equipment mounted on a vehicle. However, any property that is stationary, permanently installed at a covered location and that receives electrical power from an external power supplier will not be considered a vehicle; f. equipment manufactured by you for sale or g. satellite, spacecraft or any equipment mounted on a satellite or spacecraft. 9. "Data records" means files, documents and Information in an electronic format and that are stored within "electronic data ". 10. "Dependent property" or "dependent properties" means the property operated by others whom you depend upon to: a. Deliver materials or services to you, or to others for your account; b. Accept your products or services; c. Manufacture products for delivery to your customers under contract of sale; or d. Attract customers to your business. This coverage applies only to damaged or destroyed property: (1) Located at the same premises (grounds) as those shown in the Declarations; and (2) That serves as a leader location - attracting customers to the premises; but This coverage does not apply to leader locations used at any time for exhibitions, trade shows, conventions, fairs or similar events. Example- Leader location: a large department store (anchor store) at a shopping mall that serves as a general attraction to the premises and, without which, the number of shoppers coming and going would be significantly lower - customers would go elsewhere to shop. 11. "Electronic data" means the following, if owned by you or licensed to you and used in your business: a. 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 .391- 1003 06 09 17,988 are used with electronically controlled equipment. b. 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. 12. "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) whom you compensate directly by salary, wages or commissions; and (3) whom you have the right to direct and control while performing services for you.' b. Any natural person or persons employed by an employment contractor while that person is subject to your direction and control and performing services for you excluding, however, any such person while having care and custody of property outside the premises. c. Directors, trustees, officers, administrators or persons of similar nature or responsibility who are managing any employee welfare or pension benefit plan insured under this Insurance. "Employee" does not include any independent contractors acting in the above capacity. d. Your director or trustee while that person is performing the duties of any "employee ". e. But "employee" or "employees" does not mean any agent, broker, factor, commission merchant, consignee, independent contractor or representative of the same general character. 13. "Fine Arts" means paintings, etchings, pictures, tapestries, rare art glass, art glass windows, valuable rugs, statuary, sculptures, "antique" furniture, "antique" jewelry, bric -a -brac, porcelains, and similar property of rarity, historical value, or artistic merit. 14. "Hardware" means an assemblage of electronic machine components capable of accepting instructions and information according to the instructions, and producing desired results. 15. "Hazardous substance" means any substance that is hazardous to health or has Includes copyrighted material of Insurance Services Page 44 of 66 Office, Inc. with its permission been declared to be hazardous to health by a governmental agency, 16. "Manager" or "managers" means a person or persons serving in a directorial capacity for a limited liability company (LLC). 17. "Member" means an owner of a limited liability company represented by Its membership interest, who also may serve as a "manager ". 18. "Mold" means any mold, fungus, mildew or yeast including any spores or toxins produced by or emanating from such mold, fungus, mildew or yeast. 19. "Money" means: a. Currency, coins and bank notes in current use and having a face value; and b. Travelers checks, register checks and money orders held for sale to the public. 20. "Occurrence" means all loss or damage that is attributable directly or indirectly to: a. One cause, act, event or series of similar, related causes, acts or events involving one or more persons; or b. One cause, act or event, or a series of similar related causes, acts or events not involving any person. 21. "Operations" means your business activities occurring at the described premises. 22. "Payroll expense" means: a. Payroll; b. Employee Benefits, If directly related to payroll; c. FICA payments you pay; d. Union dues you pay; and e. Workers' Compensation premiums. 23. "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 391- 1003 06 09 17,989 rn� L2§�, 4 Hanover Insurance Croup.. OB39898815 1001051 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 lest 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 ". 24. "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. 25. "Pollutants" means any solid, liquid, gaseous or thermal irritant or contaminant, including smoke, vapor, soot, fumes, acids, alkalis, chemicals and waste. Waste includes materials to be recycled, reconditioned or reclaimed. 26. "Securities" means negotiable and non - negotiable instruments or contracts representing either "money" or other property and Includes: a. Tokens, tickets, revenue and other stamps (whether represented by actual stamps or unused value in a meter) in current use; and b. Evidences of debt issued in connection with credit or charge cards, which cards are not issued by you; but does not Include "money ". 27. "Software" means: processing, recording, or storage media used for computer processing operations. This includes films, tapes, cards, discs, drums, cartridges, or cells. 28. "Specified Causes of Loss" means the following: Fire; lightning; explosion, windstorm or hail; Includes copyrighted material of Insurance Services Page 45 of 66 Office, Inc. with its permission smoke; aircraft or vehicles; riot or civil 1. Business Liability commotion; vandalism; leakage from fire extinguishing equipment; sinkhole collapse; a. We will pay those sums that the insured volcanic action; falling objects; weight of becomes legally obligated to pay as snow, ice or sleet; water damage. damages because of "bodily injury ", "property damage" or "personal and a. Sinkhole collapse means the sudden advertising injury" to which this sinking or collapse of land into t insurance applies. We will have the right underground empty spaces created by the and duty to defend the insured against action of water on limestone or dolomite. any suit" seeking those damages. This cause of loss does not include: However, we will have no duty to defend (1) The cost of filling sinkholes; or the insured against any "suit" seeking (2) Sinking or collapse of land into damages for "bodily injury ", "property man -made underground cavities. damage" or "personal and advertising injury ", to which this Insurance does not b. Falling objects does not include loss of or apply. We may at our discretion, damage to: investigate any y "occurrence" and settle (1) Personal property in the open; or any claim or "suit" that may result. (2) The interior of a building or structure, But: or property inside a building or (1) The amount we will pay for structure, unless the roof or an damages is limited as described in outside wall of the building or Paragraph D - Liability and Medical structure is first damaged by a falling Expenses Limits of Insurance in object. SECTION II - LIABILITY; and c. Water damage means accidental (2) Our right and duty to defend end discharge or leakage of water or steam when we have used up the as the direct result of the breaking apart applicable limit of insurance In the or cracking of any part of a system or payment of judgments or settlements appliance (other than a sump system or medical expenses. including its related equipment and parts) No other obligation or liability to pay containing water or steam. sums or perform acts or services is 29. "Stock" means merchandise held in storage covered unless explicitly provided for or for sate, raw materials and in process or under Paragraph f. Coverage Extension - finished goods, including supplies used in Supplementary Payments. their packing or shipping. b. This insurance applies: 30. "Suspension" means the partial slowdown or (1) To "bodily Injury" "property complete cessation of your business and activities; and that a part or all of the damage" only it: described premises is rendered (a) The "bodily injury" or "property un-tenantable, if coverage for Business damage" is caused by an Income applies. "occurrence" that takes place in 31. "Theft" means any act of stealing. the "coverage territory"; 32. "Valuable papers and records" means: (b) The "bodily injury" or "property damage" occurs during the a. Inscribed, printed or written: policy period; and (1) Documents; (c) Prior to the policy period, no (2) Manuscripts; and Insured listed under Paragraph (3) Records; C.1. Who Is An Insured and no "employee" authorized by you to including abstracts, books, deeds, give or receive notice of drawings, P s, films, maps or mortgages; and occurrence" or claim knew that b. Similar items stored electronically. the "bodily injury" or "property damage" had occurred, in whole But "valuable papers and records" does not or in part. If such a listed mean "money" or "securities ". insured or authorized "employee" knew, SECTION II - LIABILITY prior to the policy period that the A. Coverages "bodily injury" or "property 3911003 06 09 Includes copyrighted material of Insurance Services Page 46 of 66 17,990 Office, Inc. with its permission Hanover Insurance Croup.. OB39898816 1001051 damage" occurred, then any vehicle to which Business continuation, change or Liability Coverage for "bodily resumption of such "bodily injury" applies. We do not have injury" or "property damage" to furnish these bonds. during or after the policy period (c) The cost of bonds to release will be deemed to have been attachments, but only for bond known prior 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 was committed in the "coverage Incurred the insured at our territory" during the policy period. to request to assist us in the c. "Bodily injury" or "property damage" investigation or defense of the which occurs during the policy period claim or "suit ", including actual and was not, prior to the policy period, loss of earnings up to $500 a day known to have occurred by any insured because of time off from work. listed under Paragraph CA. Who Is An (e) All court costs taxed against the I Insured or any "employee" authorized insured in the ''suit ". However, by you to give or receive notice of an these payments do not include "occurrence" or claim, includes any attorneys' fees or attorneys' continuation, change or resumption of expenses taxed against the "bodily Injury" or 'property damage" insured. after the end of the policy period. d. "Bodily injury" or "property damage" will (f1 against the i interest awarded against the insured on that part be deemed to have been known to have of the judgment we pay. If we occurred at the earliest time when any make an offer to pay the Limit of insured listed under Paragraph C.1. Who Insurance, we will not pay any Is An Insured or any "employee" prejudgment interest based on authorized by you to give or receive that period of time after the notice of an "occurrence" or claim: offer. (1) Reports all or any part of the "bodily (9) All interest the full amount of injury" or "property damage" to us any judgment that accrues after or any other insurer; entry of the judgment and before (2) Receives a written or verbal we have paid, offered to pay, or demand or claim for damages deposited in court the part of the because of the "bodily injury" or judgment that is within our Limit "property damage "; or of Insurance. (3) Becomes aware by any other means These payments will not reduce the that "bodily injury" or "property Limit of Insurance of SECTION II - damage" has occurred or has begun LIABILITY. to occur. (2) If we defend an insured against a e. Damages because of "bodily injury" "suit" and an indemnitee of the Include damages claimed by any person insured is also named as a party to or organization for care, loss of services the "suit ", we will defend that or death resulting at any time from the indemnitee if all of the following "bodily injury", conditions are met: E Coverage Extension - Supplementary (a) The "suit" against the Payments indemnitee seeks ,damages for (1) We will pay, with respect to any which the insured has assumed claim we investigate or settle, or the liability of the indemnitee in any "suit" against an insured we a contract or agreement that is defend: an "insured contract "; (a) All expenses we incur. (b) This insurance applies to such (b) Up to $2500 for cost of bail liability assumed by the insured; bonds required because of (c) The obligation to defend, or the accidents or traffic law violations cost of the defense of, that arising out of the use of any indemnitee, has also been 391 -1003 06 09 Includes copyrighted material of Insurance Services Page 47 of 66 17,991 Office, Inc. with its permission assumed by the insured in the request will be paid as same "Insured contract "; Supplementary (d) The allegations in the "suit" and Payments. the information we know about Notwithstanding the the "occurrence" are such that provisions of Paragraph no conflict appears to exist BA.b.(2) Exclusions In between the Interests of the SECTION II - LIABILITY, insured and the interests of the such payments will not indemnitee; be deemed to be damages for "bodily (e) The indemnitee and the insured injury" and "property ask us to conduct and control damage" and will not the defense of that indemnitee reduce the limits of against such "suit" and agree insurance. that we can assign the same counsel to defend the insured Our obligation to defend an and the indemnitee; and insured's indemnitee and to pay for attorneys' fees and necessary (f) The indemnitee: litigation expenses as (i) Agrees in writing to: Supplementary Payments ends (1) Cooperate with us in the when: investigation, settlement (a) We have used up the applicable or defense of the "suit "; limit of Insurance in the payment (2) Immediately send us of judgments or settlements; or copies of any demands, (b) The conditions set forth above, notices, summonses or or the terms of the agreement legal papers received in described In Paragraph 2.f. connection with the above are no longer met. "suit "; 2. Medical Expenses (3) Notify any other insurer a. We will pay medical expenses as whose coverage is described below for "bodily injury" available to the caused by an accident: indemnitee; and (1) On premises you own or rent; (4) Cooperate with us with respect to coordinating (2) On ways next to premises you own other applicable or rent; or insurance available to (3) Because of your operations; the indemnitee; and provided that: (ii) Provides us with written (a) The accident takes place in the authorization to: "coverage territory" and during the (1) Obtain records and other policy period; Information related to (b) The expenses are incurred and the "suit"; and reported to us within one year of the (2) Conduct and control the date of the accident; and defense of the (c) The injured person submits to indemnitee in such examination, at our expense, by "suit ". physicians of our choice as often as (3) So long as the we reasonably require. conditions in Paragraph b. We will make these payments (2) are met, attorneys' regardless of fault. These payments will fees incurred by us in not exceed the applicable Limits of the defense of that Insurance of SECTION II - LIABILITY. indemnitee, necessary We will pay reasonable expenses for: litigation (1) First aid administered at the time of expenses incurred by us an accident; and necessary litigation (2) Necessary medical, surgical, x-ray expenses incurred by the Indemnitee at our and dental services, including 391.1003 06 09 17,992 Includes copyrighted material of Insurance Services Page 48 of 66 Office, Inc. with its permission prosthetic devices; and (3) Necessary professional services. B. Exclusions ambulance, hospital, nursing and funeral 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 "property damage" for which any insured may be held liable by reason of: (1) Causing or contributing . to the intoxication of any person; l'he Hanover Insurance Croup.. 0839898815 1001051 (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 only If you are in the business of manufacturing, distributing, selling, serving or furnishing alcoholic beverages. d. Workers' Compensation and Similar Laws Any obligation of the insured under a workers' compensation, disability benefits or unemployment compensation law or any similar law. e. Employer's Liability "Bodily Injury" to: (1) An . "employee" of the insured arising out of and in the course of: (a) Employment by the insured; or (b) Performing duties related to the conduct of the insured's business; or. (2) The spouse, child, parent, brother or sister of that "employee" as a consequence of Paragraph (1) above. This exclusion applies: (1) Whether the insured may be liable as an employer or in any other capacity; and (2) To any obligation to share damages with or repay someone else who must pay damages because of the injury. This exclusion does not apply to liability assumed by the insured under an "Insured contract ". f. Pollution (1) "Bodily injury" or "property damage" arising out of the actual, alleged or threatened discharge, dispersal, seepage, migration, release or escape of "pollutants ": (a) At or from any premises, site or location, which is or was at any time owned or occupied by, or rented or loaned to, any insured. However, this subparagraph does not apply to: (1) "Bodily injury" if sustained within a building and caused 391 -1003 06 09 Includes copyrighted material of Insurance Services Page 49 of 66 Office, Inc, with Its permission 17,993 391 - 1003 06 09 17,994 by smoke, fumes, vapor or does not apply to: soot produced by or (1) "Bodily injury" or "property originating from equipment damage" arising out of the that is used to heat, cool or escape of fuels, lubricants or dehumidify the building, or other operating fluids which equipment that is used to are needed to perform the heat water for personal use, normal electrical, hydraulic by the building's occupants or mechanical functions or their guest; necessary for the operation (ii) "Bodily injury" or "property of "mobile equipment" or Its damage" for which you may parts, if such fuels, be held liable, if you are a lubricants or other operating contractor and the owner or fluids escape from a vehicle lessee of such premises, site part designed to hold, store or location has been added or receive them. This to your policy as an exception does not apply if additional Insured with the "bodily injury" or respect to your ongoing "property damage" arises operations performed for out of the Intentional that additional Insured at discharge, dispersal or that premises, site or release of the fuels, location and such premises, lubricants or other operating site or location is not and fluids, or if such fuels, never was owned or lubricants or other operating occupied by, or rented or fluids are brought on or to loaned to, any insured, other the premises, site or than that additional insured; location with the intent that or they be discharged, (iii) "Bodily injury" or "property dispersed or released as damage" arising out of heat, part of the operations being smoke or fumes from a performed by such insured, "hostile fire "; contractor or subcontractor; (b) At or from any premises, site or (if) "Bodily injury" or "property location which is or was at any damage" sustained within a time used by or for any insured building and caused by the or others for the handling, release of gases, fumes or storage, disposal, processing or vapors from materials treatment of waste; brought into that building in (c) Which are or were at any time connection with operations performed you transported, handled, stored, oning behalf a treated, disposed of, or contractor or subcontractor; processed as waste by or for: or (1) Any insured; or (ffi) "Bodily Injury" or "property (ii) Any person or organization damage" arising out of heat, for whom you may be legally smoke or fumes from a responsible; or "hostile fire ". (d) At or from any premises, site or (e) At or from any premises, site or location on which any insured or location on which any insured or any contractors or any contractors or subcontractors working directly subcontractors working directly or indirectly on any Insured's or indirectly on any Insured's behalf are performing operations behalf are performing operations If the "pollutants" are brought on If the operations are to test for, or to the premises, site or monitor, clean up, remove, location in connection with such contain, treat, detoxify or operations by such Insured, neutralize, or in any way contractor or subcontractor, respond to, or assess the effects However, this subparagraph of, "pollutants ". Includes copyrighted material of Insurance Services Page 50 of 66 Office, Inc. with its permission 9• 4 the Hanover insurance Group. 0639898815 1001051 (2) Any loss, cost or expense arising (3) Parking an "auto" on, or on the ways out of any: next to, premises you own or rent, (a) Request, demand, order or provided the "auto" is not owned by statutory or regulatory or rented or loaned to you or the requirement that any Insured or insured; others test for, monitor, clean (4) Liability assumed under any up, remove, contain, treat, "insured contract" for the ownership, detoxify or neutralize, or in any maintenance or use of aircraft or way respond to, or assess the watercraft; or effects of, "pollutants "; or (b) Claim "suit" by behalf (5) "Bodily injury or "property damage" or or on of arising out of: a governmental authority for damages because of testing for, (a) The operation of machinery or monitoring, cleaning up, equipment that is attached to, or removing, containing, treating, part of, a land vehicle that would detoxlfying or neutralizing, or in qualify under the definition of any way responding to, or "mobile equipment" if it were not assessing the effects of, subject to a compulsory or "pollutants ". financial responsibility law or other motor vehicle Insurance or However, this paragraph does not motor vehicle registration law apply to liability for damages where it is licensed or because of "property damage" that principally garaged; or the Insured would have in the absence of such request, demand, (b) The operation of any of the order or statutory or regulatory following machinery or requirement or such claim or "suit" equipment: by or on behalf of a governmental (1) Cherry pickers and similar authority, devices mounted on Aircraft, Auto or Watercraft automobile or truck chassis "Bodily injury" or "property damage" and used to raise or lower arising out of the ownership, workers; and maintenance, use or entrustment to (ii) Air compressors, pumps and others of any aircraft, "auto" or generators, including watercraft owned or operated by or spraying, welding, building rented or loaned to any Insured. Use cleaning, geophysical includes operation and "loading or exploration, lighting and unloading ". well - servicing equipment; or This exclusion applies even if the claims (6) Aircraft that is: against any insured allege negligence (a) fired rwth or other wrongdoing in the supervision, by you a paid d crrew; and hiring, employment, training or monitoring of others by that insured, if (b) Not owned by any insured. the "occurrence" which caused the h. Mobile Equipment "bodily Injury" or "property, damage" "Bodily injury" or "property damage" Involved the ownership, maintenance, arising out of: use or entrustment to others of any (1) The transportation "mobile aircraft, "auto" or watercraft that is of owned or operated by or rented or equipment" by an "auto" owned or loaned to any insured. operated by or rented or loaned to any Insured; or This exclusion does not apply to: it (1) A watercraft while ashore on (2) The use of "mobile equipment" in, or premises you own rent; while in practice for, or while being prepared for, any prearranged (2) A watercraft you do not own that is: racing, speed, demolition or stunting (a) Less than 51 feet long; and activity. (b) Not being used to carry persons 1. War or property for a charge; "Bodily injury", "property damage" or 391- 1003 06 09 17,995 Includes copyrighted material of Insurance Services Page 51 of 66 Office, Inc. with Its permission "personal and advertising injury ", however caused, arising, directly or indirectly, out of: (1) War, including undeclared 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 government authority in hindering or defending against any of these. j. Professional Services "Bodily injury ", "property damage ", "personal and advertising injury" arising out of the rendering of or failure to render any professional service: (1) By you; or (2) On your behalf; or (3) For whom the insured assumed liability by reason of a contract or agreement, regardless of whether or not any such service, advice or instruction Is ordinary to any insured's profession. This includes but is not limited to: (a) Legal, accounting or advertising services, notary, title abstract, tax preparation, real estate, stockbroker, publishing, architects or insurance services; (b) Preparing, approving, or failing to prepare or approve maps, drawings, opinions, reports, surveys, change orders, designs or specifications; (c) Supervisory, inspection or engineering services; (d) Medical, surgical, dental, x -ray or nursing services treatment, advice or instruction; (e) Any health or therapeutic service treatment, advice or instruction; (f) 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; (g) Optometry or optical or hearing aid services including the prescribing, 391 - 1003 06 09 17,996 preparation, fitting, demonstration or distribution of ophthalmic lenses and similar products or hearing aid devices; (h) Body piercing services; (i) Services in the practice of pharmacy; (j) Management, Human Resource, Technology, Testing, Media or Public Relations consulting services; or (k) Computer Software Development. k. Damage to Property "Property damage" to: (1) Property you own, rent or occupy, Including any costs or expenses incurred by you, or any other person, organization or entity, for repair, replacement, enhancement, restoration or maintenance of such property for any reason, including prevention of injury to a person or damage to another's property; (2) Premises you sell, give away or abandon, if the "property damage" arises out of any part of those premises; (3) Property loaned to you; (4) Personal property in the care, custody or control of the Insured; (5) That particular part of real property on which you or any contractor or subcontractor working directly or indirectly on your behalf is performing operations, if the "property damage" arises out of those operations; or (6) That particular part of any property that must be restored, repaired or replaced because "your work" was incorrectly performed on It. Paragraphs (1), (3) and (4) of this exclusion do not apply to "property damage" (other than damage by fire) to premises, including the contents of such premises, rented to you for a period of 7 or fewer consecutive days. A separate Limit of Insurance applies to Damage to Premises Rented to You as described in Paragraph D. Liability and Medical Expenses Limit of Insurance in SECTION II - LIABILITY. Paragraph (2) of this exclusion does not apply if the premises are "your work" and were never occupied, rented or held Includes copyrighted material of Insurance Services Page 52 of 66 Office, Inc. with Its permission 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 ". This exclusion does not apply if the damaged work or the work out of which the damage arises was performed on your behalf by a subcontractor. n. Damage to Impaired Property or Property Not Physically Injured "Property damage" to "impaired property" or property that has not been physically injured, arising out of: (1) A defect, deficiency, Inadequacy or dangerous condition in 'your product' or "your work "; or (2) A delay or failure by you or anyone acting on your behalf to perform a contract or agreement in accordance with Its terms. This exclusion does not apply to the loss of use of other property arising out of sudden and accidental physical injury to 'your product' or 'your work' after it has been put to its intended use. o. Recall of Products, Work or Impaired Property Damages claimed for any loss, cost or expense Incurred by you or others for the loss of use, withdrawal, recall, inspection, repair, replacement, adjustment, removal or disposal of: (1) "Your product'; (2) "Your work'; or (3) "Impaired property "; if such product, work or property is withdrawn or recalled from the market or from use by any person or organization because of a known or suspected defect, deficiency, inadequacy or dangerous condition in it. 391.1003 06 09 17,997 TIv1 Ha11!lnsunncc Group.. O B3 9898816 1001051 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: "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. "Testing" means examination, observation, evaluation or measuring of the performance of "aircraft products ", while elther in the air or on the ground. q. Distribution of Material in Violation of Statutes "Bodily injury", "property damage" or "personal and advertising Injury" arising directly or indirectly out of any action or omisslon 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 Includes copyrighted material of Insurance Services Page 53 of 66 Office, Inc. with its permission (FCRA), and any amendment of or addition to such law, including the Fair and Accurate Credit Transaction Act (FACTA); or (4) Any federal, state or local statute, ordinance or regulation, other than the TCPA, CAN -SPAM Act of 2003 or FCRA and their amendments and additions, that addresses, prohibits or limits the printing, dissemination, disposal, collecting, recording, sending, transmitting, communicating or distribution of material or Information. r. Electronic Data Damages arising out of the loss of, loss of use of, damage to, corruption of, Inability to access, or inability to manipulate electronic data. As used in this exclusion, electronic data means information, facts or programs stored as or on, 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. Exclusions c., d., e., E, g., h., L, k., I., m., n. and o. In Section II - Liability do not apply to damage by fire to premises while rented to you, or temporarily occupied by you with permission of the owner. A separate Damage to Premises Rented to You Limit of Insurance applies to this coverage as described in Section D., Liability and Medical Expenses Limits of Insurance in SECTION II - LIABILITY. 2. Additional Exclusions Applicable only to 'Personal and Advertising Injury' This Insurance does not apply to "Personal and advertising Injury ": a. Knowing Violation of Rights of Another 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 Arising out of oral or written publication of material, if done by or at the direction of the insured with knowledge of its falsity. c. Material Published Prior to Policy Period 391 -1003 06 09 17,996 Arising out of oral or written publication of material whose first publication took place before the beginning of the policy period. d. Criminal Acts Arising out of a criminal act committed by or at the direction of any insured. e. Contractual Liability 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. f. Breach of Contract 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 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 Arising out of the wrong description of the price of goods, products or services stated in your "advertisement ". L Insureds in Media and Internet Type Businesses 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 Paragraphs 16.a., b. and c. of "personal and advertising injury" under Paragraph F. Liability and Medical Expenses Definitions. For the purposes of this exclusion, the placing of frames, borders or links, or advertising, for you or others anywhere on the Internet, is not by itself considered the business of advertising, broadcasting, publishing or telecasting. j. Pollution Arising out of the actual, alleged or threatened discharge, dispersal, Includes copyrighted material of Insurance Services Page 54 of 66 Office, Inc. with its permission seepage, migration, release or escape of "pollutants" at any time. k. Pollution- Related With respect to 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 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 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 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. To any insured, except "volunteer workers ". nvt L-t",N, 4 Hanover Insurance Group.. 0839898815 1001051 d. To a person, whether or not an "employee" of any insured, if benefits for the "bodily injury" are payable or must be provided under a workers' compensation or disability benefits law or a similar law. e. To a person injured while practicing, instructing or participating in any physical exercises or games, sports or athletic contests. f. Included within the "products - completed operations hazard ". g. Excluded under Business Liability Coverage. 4. Additional Exclusions Applicable To Both Business Liability Coverage and Medical Expenses Coverage - Nuclear Energy Liability Exclusion This insurance does not apply: a. Under Business Liability Coverage, to "bodily injury" or "property damage ": (1) With respect to which an Insured under the policy is also an insured under a nuclear energy 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 (2) Resulting from the ".hazardous properties" of "nuclear material" and with respect to which: (a) Any person or organization Is required to maintain financial protection pursuant to the Atomic Energy Act of 1954, or any law amendatory thereof; or (b) The insured is, or had this policy not been Issued would be, entitled to indemnity from the United States of America, or any agency thereof, under any agreement entered into by the United States of America, or any agency thereof, with any person or organization. b. To a person hired to do work for or on b. Under Medical Expenses Coverage, to behalf of any insured or a tenant of any expenses Incurred with respect to Insured. "bodily Injury" resulting from the c. To a person injured on that part of "hazardous properties" of "nuclear premises you own or rent that the material" and arising out of the person normally occupies. operation of a "nuclear facility" by any person or organization. 391 -1003 06 09 Includes copyrighted material of Insurance Services Page 55 of 66 17,999 1 Office, Inc. with Its permission c. Under Business Liability Coverage, to or device is located consists of "bodily injury" or "property damage" or contains more than 25 grams resulting from the "hazardous of plutonium or uranium 233 or properties" of the "nuclear material "; if: any combination thereof, or more than 250 grams of uranium (1) The "nuclear material ": 235; (a) Is at any "nuclear facility" owned (d) Any structure, basin, excavation, by, or operated by or on behalf premises or place prepared or of, an insured; or used for the storage or disposal (b) Has been discharged or of "waste"; dispersed therefrom; and includes the site on which any (2) The "nuclear material" is contained of the foregoing is located, all in "spent fuel" or "waste" at any operations conducted on such site time possessed, handled, used, and all premises used for such processed, stored, transported or operations; disposed of by or on behalf of an (4) "Nuclear material" means "source insured; or material ", "special nuclear material" (3) The "bodily injury" or "property or "by- product material "; damage" arises out of the furnishing (5) "Nuclear reactor" means any by an insured of services, materials, apparatus designed or used to parts or equipment in connection sustain nuclear fission in a with the planning, construction, self - supporting chain reaction or to maintenance, operation or use of contain a critical mass of fissionable any "nuclear facility "; but if such material; facility is located within the United States of America, its territories or (6) "Property damage" Includes all possessions or Canada, this forms of radioactive contamination Exclusion (3) applies only to of property. "property damage" to such "nuclear (7) "Source material" has the meaning facility" and any property thereat. given it in the Atomic Energy Act of d. As used in this exclusion: 1954 or in any law amendatory (1) "By-product material" has the thereof; meaning given It in the Atomic (8) "Special nuclear material" has the Energy Act of 1954 or in any law meaning given it in the Atomic amendatory thereof; Energy Act of 1954 or in any law (2) "Hazardous properties" include amendatory thereof; radioactive, toxic or explosive (9) "Spent fuel" means any fuel element properties; or fuel component, solid or liquid, which has been used or exposed to (3) "Nuclear facility" means: radiation in a "nuclear reactor "; (a) Any "nuclear reactor "; (10) "Waste" means any waste material: (b) Any equipment or device (a) Containing "by- product material" designed or used for: other than the tailings or wastes (1) Separating the isotopes of produced by the extraction or uranium or plutonium; concentration of uranium or (ii) Processing or utilizing thorium from any ore processed "spent fuel"; or primarily for its "source material" content; and (iii) Handling, processing or "waste "; (b) Resulting from the operation by packaging any person or organization of (c) Any equipment or device used any "nuclear facility" Included for the processing, fabricating or under Paragraphs (a) and (b) of alloying of "special nuclear the definition of "nuclear material" If at any time the total facility ". amount of such material in the custody of the Insured at the C. Who Is An Insured premises where such equipment 1. If you are designated in the Declarations as: 391.1003 06 09 18,000 Includes copyrighted material of Insurance Services Page 56 of 66 Office, Inc. with its permission 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 4 " r 9yer uuce Croup. OB39898816 1001051 business; (b) To the spouse, child, parent, brother or sister of that co- "employee" as a consequence of Paragraph (a) above; (c) For which there is any obligation to share damages with or repay someone else who must pay damages because of the injury described in Paragraphs (a) or (b); or (d) Arising out of his or her providing or failing to provide professional services. (2) "Property damage" to property: (a) Owned, occupied or used by; or (b) Rented to, in the care, custody or control of, or over which physical control is being exercised for any purpose by you, any of your "employees ", "volunteer workers ", any partner or member (if you are a partnership or joint venture), or any member (if you are a limited liability company). b. Any person (other than your "employee" or "volunteer worker "), or any organization while acting as your real estate manager. c: Any person or organization having proper temporary custody of your property if you die, but only: (1) With respect to liability arising out of the maintenance or use of that property; and (2) Until your legal representative has been appointed. d. Your legal representative if you die, but only with respect to duties as such. That representative will have all your rights and duties under this policy. 3. Any organization you newly acquire or form, acquire or form, other than a partnership, joint venture or limited liability company, and over which you maintain ownership or majority interest, will qualify as a Named Insured if there is no other similar insurance available to that organization. However: a. Coverage under this provision Is afforded only until the 901° day after you acquire or form the organization or the end of the policy period, whichever is earlier; and 391 -1003 06 09 Includes copyrighted material of Insurance Services Office, Inc, with its permission 18,001 Page 57 of 66 b. Business Liability Coverage does not apply to: (1) "Bodily injury" or "property damage" that occurred before you acquired or formed the organization; and (2) "Personal and advertising Injury" arising out of an offense committed before you acquired or formed the organization. No person or organization is an Insured with respect to the conduct of any current or past partnership, joint venture or limited liability company that Is not shown as a Named Insured in the Declarations. D. Liability and Medical Expenses Limits Of Insurance 1. The Limits of Insurance of SECTION II - LIABILITY shown In the Declarations and the rules below fix the most we will pay regardless of the number of: a. Insureds; b. Claims made or "suits" brought; or c. Persons or organizations making claims or bringing "suits ". 2. The most we will pay for the sum of all damages because of all: a. "Bodily injury", "property damage" and medical expenses arising out of any one "occurrence "; and b. "Personal and advertising injury" sustained by any one person or organization; are the Liability limit and the Medical Expenses limit, respectively, shown in the Declarations. But the most we will pay for all medical expenses because of "bodily injury" sustained by any one person is the Medical Expenses limit shown in the Declarations. 3. The most we will pay under Business Liability Coverage for damages because of "property damage" to premises while rented to you or temporarily occupied by you with permission of the owner, arising out of any one fire, or one incidence of lightning, explosion, smoke or leakage from fire protective systems is the Damage to Premises Rented to You limit shown in the Declarations. 4. Aggregate Limits The most we will pay for: a. All "bodily injury" and "property damage" that is Included in the "products- completed operations hazard" 391 -1003 06 09 18,002 is twice the Business Liability limit and the Medical Expenses limit. b. All: (1) "Bodily injury" and "property damage" except damages because of "bodily Injury" and "property damage" included in the "products - completed operations hazard "; (2) Plus medical expenses; (3) Plus all "personal and advertising injury" caused by offenses committed; Is twice the Business Liability limit and the Medical Expenses limit. 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. Subject to Paragraph a. or b, above, whichever applies, the Damage to Premises Rented to You Limit is the most we will pay for damages because of "property damage" to any one premises, while rented to you, or in the case of fire, lightning, explosion, smoke or leakage from fire protective systems, while rented to you or temporarily occupied by you with permission of the owner. The Limits of Insurance of SECTION II - LIABILITY apply separately to each consecutive annual period and to any remaining period of less than 12 months, starting with the beginning of the policy period shown in the Declarations, unless the policy period is extended after issuance for an additional period of less than 12 months. In that case, the additional period will be deemed part of the last preceding period for purposes of determining the Limits of Insurance. E. Liability and Medical Expenses General Conditions 1. Bankruptcy Bankruptcy or insolvency of the insured or of the insured's estate will not relieve us of our obligations under this policy. 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 Includes copyrighted material of Insurance Services Page 58 of 66 Office, Inc. with its permission "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 policy: a. To join us as a party or otherwise bring us into a "suit" asking for damages from an insured; or b. To sue us on this policy unless all of its terms have been fully complied with. A person or organization may sue us to recover on an agreed settlement or on a final judgment against an insured; but we will not be liable for damages that are not payable under the terms of this policy or that are in excess of the applicable limit of insurance. An agreed settlement means a settlement and release of liability signed by 4 L26,, k, Thn Hanover Insurance Group.. OB39898815 1001051 us, the insured and the claimant or the claimant's legal representative. 4. Separation of Insureds Except with respect to the Limits of Insurance of SECTION II - LIABILITY, and any rights or duties specifically assigned in this 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. F. Liability and Medical Expenses Definitions 1. "Advertisement" means a notice that is broadcast or published to the general public or specific market segments about your goods, products or services for the purpose of attracting customers or supporters. For the purposes of this definition: a. Notices that are published include material placed on the Internet or on similar electronic means of communication; and b. Regarding web - sites, only that part of a web -site that is about your goods, products or services for the purposes of attracting customers or supporters is considered an advertisement. 2. "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; e. 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. 3. "Auto" means: 391 - 1003 06 09 Includes copyrighted material of Insurance Services Page 59 of 66 18,003 Office, Inc. with Its permission a. A land motor vehicle, trailer or semitrailer designed for travel on public roads, including any attached machinery or equipment; or b. Any other land vehicle that is subject to a compulsory or financial responsibility law or other motor vehicle insurance law in the state where it is licensed or principally garaged. However, "auto" does not Include "mobile equipment ". 4. "Bodily injury" means bodily injury, sickness or disease sustained by a person, including death resulting from any of these at any time. 61 6. 7. 8. 9. "Coverage territory" means: a. The United States of America (including its territories and possessions), Puerto Rico and Canada; b. International waters or airspace, but only If the injury or damage occurs In the course of travel or transportation between any places included in Paragraph a. above; or c. All other parts of the world if the Injury or damage arises out of (1) Goods or products made or sold by you in the territory described in Paragraph a. above; (2) The activities of a person whose home is in the territory described in Paragraph a. above, but is away for a short time on your business; or (3) "Personal and advertising injury" offenses that take place through the Internet or similar electronic means of communication; provided the insured's responsibility to pay damages is determined in a "suit" on the merits in the territory described in Paragraph a. above or in a settlement we agree to. "Employee" includes a "leased worker ". "Employee" does not include a "temporary worker ". "Executive officer" means a person holding any of the officer positions created by your charter, constitution, by -laws or any other similar governing document. "Hostile fire" means one which becomes uncontrollable or breaks out from where it was Intended to be. "Impaired property" means tangible property, other than "your product" or "your work ", that cannot be used or is less useful 391. 1003 06 09 18,004 because: a. It incorporates "your product" or "your work" that Is known or thought to be defective, deficient, inadequate or dangerous; or b. You have failed to fulfill the terms of a contract or agreement; if such property can be restored to use by: (1) The repair, replacement, adjustment or removal of "your product" or "your work "; or (2) Your fulfilling the terms of the contract or agreement.. 10. "Insured contract" means: a. A contract for a lease of premises. However, that portion of the contract for a lease of premises that indemnifies any person or organization for damage by fire, lightning, explosion, smoke or leakage from fire protective systems to premises while rented to you or temporarily occupied by you with permission of the owner is not an "insured contract "; b. A sidetrack agreement; c. Any easement or license agreement, except in connection with construction or demolition operations on or within 50 feet of a railroad; d. An obligation, as required by ordinance, to indemnify a municipality, except in connection with work for a municipality; e. An elevator maintenance agreement; f. That part of any other contract or agreement pertaining to your business (including an indemnification of a municipality in connection with work performed for a municipality) under which you assume the tort liability of another party to pay for "bodily injury" or "property damage" to a third person or organization. Tort liability means a liability that would be imposed by law in the absence of any contract or agreement. Paragraph f. does not Include that part of any contract or agreement: (1) That indemnifies a railroad for "bodily Injury" or "property damage" arising out of construction or demolition operations, within 50 feet of any railroad. property and affecting any railroad bridge or trestle, tracks, road . beds, tunnel, underpass or crossing; Includes copyrighted material of Insurance Services Page 60 of 66 Office, Inc. with its permission (2) That indemnifies an architect, engineer or surveyor for injury or damage arlsing 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. 11. "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 ". 12. "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 properly by means of a mechanical device, other than a hand truck, that is not attached to the aircraft, watercraft or "auto". 13. "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 391- 1003 06 09 18,005 Hanover insurance Crone. OB39898815 1001051 (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 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". 14. "Occurrence" means an accident, including continuous or repeated exposure to substantially the same general harmful conditions. 15. "Personal and advertising Injury" means injury, including consequential "bodily Includes copyrighted material of Insurance Services Page 61 of 66 Office, Inc, with its permission 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 ", 16. "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. 17. "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. 391 -1003 06 09 18,006 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. 18. "Properly 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. 19. "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 Includes copyrighted material of Insurance Services Page 62 of 66 Office, Inc. with its permission claimed and to which the insured submits with our consent. 20. "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. 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 Hanover Insurance Group. - 0B39898815 1001051 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. (3) The building has: (a) An outstanding order to vacate; (b) An outstanding demolition order; or (c) Been declared unsafe by governmental authority. (4) Fixed and salvageable items have been or are being removed from the building and are not being replaced. This does not apply to such removal that Is necessary or incidental to any renovation or remodeling. (5) Failure to: (a) Furnish necessary heat, water, sewer service or electricity for 30 consecutive days or more, except during a period of seasonal unoccupancy; or (b) Pay property taxes that are owed and have been 391 - 1003 06 09 Includes copyrighted material of Insurance Services Page 63 of 66 18,007 Office, Inc. with its permission B. C. 19 E. 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 rata. If the first Named Insured cancels, the refund may be less than pro rata. The cancellation will be effective even if we have not made or offered a refund. 6. If notice is mailed, proof of mailing will be sufficient proof of notice. 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 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 conceal or misrepresent 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. Inspections and Surveys 1. We have the right to: a. Make inspections and surveys at any time; b. Give you reports on the conditions we find; and c. Recommend changes. 2. We are not obligated to make any inspections, surveys, reports or recommendations and any such actions we do undertake relate only to Insurability and the 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. And we do not warrant that conditions: a. Are safe and healthful; or b. Comply with laws, regulations, codes or standards. 3. Paragraphs 1. and 2. of this condition apply not only to us, but also to any rating, advisory, rate service or similar organization which makes Insurance inspections, surveys, reports or recommendations. 4. .Paragraph 2. of this condition does not apply to any inspections, surveys, reports or recommendations we may make relative to certification, under state or municipal statutes, ordinances or regulations, of boilers, pressure vessels or elevators. F. Insurance Under Two or More Coverages If two or more of this policy's coverages apply to the same loss or damage, you may choose only one of these coverages to apply to that loss. 1. Under SECTION 1 - 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. Under SECTION II - LIABILITY, It is our stated Intent that the various coverage parts, endorsements or policies issued to you by us, or any company affiliated with us, do not provide any duplication or overlap of coverage for the same claim or "suit ". If this policy and any other coverage part or policy issued to you by us, or any company affiliated with us, apply to the same claim, occurrence, offense, accident or loss, the maximum Limit of Insurance under all such coverage parts or policies combined shall not exceed the highest applicable Limit of Insurance under any one coverage part or policy. This condition does not apply to any Excess or Umbrella Policy issued by us specifically 391- 1003 06 09 Includes copyrighted material of Insurance Services Page 64 of 66 18,008 Office, Inc. with its permission Hanover ,nsurance Group- 0133 9898816 1001051 to apply as excess insurance over this SECTION II - LIABILITY; and policy. 2) Any other primary insurance G. Liberalization available to you covering liability for If we adopt any revision that would broaden the damages arising out of the premises coverage under this policy without additional or operations, or the products and premium within 45 days prior to or during the completed operations, for which you policy period, the broadened coverage will have been added as an additional Immediately apply to this policy. insured by attachment of an H. Other Insurance endorsement. 1. SECTION I - PROPERTY When this insurance is excess, we will have no duty under SECTION II - If there is other insurance covering the LIABILITY to defend the insured against same loss or damage, we will pay only for any "suit" if any other Insurer has a duty the amount of covered loss or damage in to defend the insured against that "suit ". excess of the amount due from that other If no other insurer defends, we will Insurance, whether you can collect on it or undertake to do so, but we will be not. But, we will not pay more than the entitled to the insured's rights against applicable Limit of Insurance of SECTION I - all those other insurers. PROPERTY. 2. SECTION II - LIABILITY c. When this insurance is excess over other insurance, we will pay only our If other valid and collectible insurance Is share of the amount of the loss, if any, available to the Insured for a loss we cover that exceeds the sum of: under SECTION 11 - LIABILITY, our 1) The total amount that all such other obligations are limited as follows: insurance would pay for the loss in a. Primary Insurance the absence of this insurance; and This Insurance is primary except when 2) The total of all deductible and Paragraph b. below applies. If this self- insured amounts under all that insurance is primary, our obligations are other insurance. not affected unless any of the other d. We will share the remaining loss, if any, insurance is also primary. Then, we will with any other Insurance that is not share with all that other insurance by described in this provision and was not the method described in Paragraph c. bought specifically to apply in excess of below. the Limits of Insurance shown in the b. Excess Insurance Declarations for this Coverage. This Insurance Is excess over: e. Method of Sharing 1) Any of the other insurance, whether If all of the other insurance permits primary, excess, contingent or on contribution by equal shares, we will any other basis: follow this method also. Under this (a) That is Fire, Extended Coverage, approach each insurer contributes equal Builder's Risk, Installation Risk amounts until it has paid its applicable or similar coverage for "your limit of insurance or none of the loss work "; remains, whichever comes first. (b) That Is Fire insurance for If any of the other insurance does not premises rented to you or permit contribution by equal shares, we temporarily occupied by you will contribute by limits. Under this with permission of the owner; method, each Insurer's share is based (c) That is insurance purchased by on the ratio of its applicable limit of you to cover your liability as a insurance to the total applicable limits of tenant for "property damage" to insurance of all insurers. premises rented to you or f. When this insurance is excess, we will temporarily occupied by you have no duty under Business Liability with permission of the owner; or Coverage to defend any claim or "suit" (d) If the loss arises out of the that any other insurer has a duty to maintenance or use of aircraft, defend. If no other insurer defends, we "autos" or watercraft to the will undertake to do so; but we will be extent not subject to Exclusion g. entitled to the insured's rights against Aircraft, Auto or Watercraft of all those other Insurers. 391. 1003 06 09 18,009 Includes copyrighted material of Insurance Services Page 65 of 66 Office, Inc. with its permission I. Premiums 1, The first Named Insured shown in the Declarations: a. Is responsible for the payment of all premiums; and b. Will be the payee for any return premiums we pay. 2. The premium shown in the Declarations was computed based on rates in effect at the time the policy was issued. On each renewal, continuation or anniversary of the effective date of this policy, we will compute the premium in accordance with our rates and rules then in effect. 3. With our consent, you may continue this policy in force by paying a continuation premium for each successive one -year period. The premium must be: a. Paid to us prior to the anniversary date; and b. Determined in accordance with Paragraph 2. above. Our forms then in effect will apply. If you do not pay the continuation premium, this policy will expire on the first anniversary date that we have not received the premium. 4. Undeclared exposures or change In your business operation, acquisition or use of locations may occur during the policy period that are not shown in the Declarations. If so, we may require an additional premium. That premium will be determined in accordance with our rates and rules then in effect. J. Premium Audit 1. This policy is subject to audit if a premium designated as an advance premium is shown in the Declarations. We will compute the final premium due when we determine your actual exposures. 2. Premium shown in this policy as advance premium is a deposit premium only. At the close of each audit period we will compute the earned premium for that period and send notice to the first Named Insured. The due date for audit premiums is the date shown as the due date on the bill. If the sum of the advance and audit premiums paid for the policy period is greater than the earned premium, we will return the excess to the first Named Insured. 3. The first Named Insured must keep records of the information we need for premium computation, and send us copies at such times as we may request. K. Transfer of Rights of Recovery Against Others to Us 1. Applicable to SECTION I - PROPERTY Coverage: If any person or organization to or for whom we make payment under this policy has rights to recover damages from another, those rights are transferred to us to the extent of our payment. That person or organization must do everything necessary to secure our rights and must do nothing after loss to impair them. But you may waive your rights against another party in writing: a. Prior to a loss to your Covered Property, b. After a loss to your Covered Property only if, at time of loss, that party is one of the following: (1) Someone insured by this insurance; (2) A business firm: (a) Owned or controlled by you; or (b) That owns or controls you; or (3) Your tenant. You may also accept the usual bills of lading or shipping receipts limiting the liability of carriers. This will not restrict your Insurance 2. Applicable to 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 them. At our request, the insured will bring "suit' or transfer those rights to us and help us enforce them. This condition does not apply to Medical Expenses Coverage. L. Transfer of Your Rights and Duties Under This Policy Your rights and duties under this policy may not be transferred without our written consent except in the case of death of an individual Named Insured. If you die, your rights and duties will be transferred to your legal representative but only while acting within the scope of duties as your legal representative. Until your legal representative is appointed, anyone having proper temporary custody of your property will have your rights and duties but only with respect to that property. 391 - 1003 06 09 Includes copyrighted material of Insurance Services Page 66 of 66 18,010 Office, Inc. with its permission COTC PROCESSING FORM Agreements / Amendments / Deeds TO: CLERK OF THE COUNCIL OFFICE FROM: DEPT.: Santa Ana Police Department PROJECT MANAGER: Commander Tammv Franks Clear Form MAIL STOP: M-97 EXT.: 8352 AGREEMENT NUMBER (if amendment): A / N AMENDMENT NUMBER (if applicable): ❑ 1ST ❑ 2ND ❑ 3RD ❑ NAME OF CONSULTANT / PARTY: Linear Systems AMOUNT: ©* OVER $25,000 — (A) ❑ *UP TO $25,000 - (N) Note: If your agreement with a vendor exceeds $25,000 within a Fiscal Year, then you will need to obtain Council Approval. ❑ 1) NOT approved by council. ❑ 2) Approved by council. COUNCIL APPROVAL DATE: 10/21/2014 ITEM #: 25C TERM OF AGREEMENT- EFFECTIVE DATE: 07/01/2014 TERMINATION DATE: 06/30/2017 SIGNATURES REQUIRED: ® VENDOR ® AGENCY © CITYATTORNEY ❑OTHER (INSURANCE APPROVAL REQUIRED BY CAO PRIOR TO SUBMITTING TO COTC) INSURANCE REQUIRED: © YES ❑ NO (Provide City Attorney Office approval) ❑ AUTO CGL (Commercial General Liability) huf2AY)(Q ❑ PROFESSIONAL LIABILITY WORKERS COMPENSATION COMMENTS: * Charter amendment effective December 21, 2006 for City Manager contract authority increase; NS -2717 11Agreements\Form- AGREEMENT PROCESSING FORM_canary,doc Revised: 1/17/2012 A R1 _ CERTIFICATE CAE LIABILITY INSURANCE oA *E,RM,oc 4 _ 3113/2014 _ PHIS CERTIFICATE IS ISSUED AS A MATTL » »R Op INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE 05RTIFICATE HOLOER, THIS CERTIFICATE DOES NOT APPIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OP INSURANCE DOES NOT CONSTITUTE A OON'PRACT BETWEEN THE ISSUING INSURER($), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER, and conditions of the Polley, certain HUE INTERNATIONAL INS SERVICES INC 4371 LATHAM ST, STE 101 RIVERSIDE, CA 92501 UnTURED LINEAR SYSTEMS 6403 MAPLE PLACE RANCHO CUCAMONGA, CA 91730 may require an sndomoment, A statement on confer rights to e aelFiilaril, \i"rlYf1l1.124d i]WANT61011Tn!;Me7d�� THIS 1$ TO CERTIFY THAT THE POUCIES OF INSURANCE LISTED BELOW HAVE BE W- ISSUED TO THE INSURED NAsAF.O ABOVE Felt THE POUcY PERIOD INDICATED, NOTWITHSTANDING ANY RROUIRCMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH TH15 CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFOROEb BY THE POLICIES OESCRMED HEARIN 13 SUBJECT TO ALL THE TERMS. VXC'LU$GN3' AND CONDITIONS CF SUCH POLICIES LIMITS SHOWN MAY HAVE BEEN RCDUCED SY PAID CLAIMS, IN R .•... TYPF091RISURANCl" ,..,.».— .131'4�4: ». P0U NI msm i mm'Dwyyyyl yNP ._ ._ - • -- CINITE jjjaENEFAL LMU!a,en ! FACHOCCURFENCE ®1000060 X1COMMERCNLC&NRRA. LIABILITY A t r5Z �%f F I p �g300000 1A 000 C"Ifla.MA,1E 0=01% 083 989881 b 01 04125M.014 j 04/25/2016 me OAF, �i`!!Y'?^P'Lat" , $ . l .» MAIN INJURY Ic1,000,DUQ »•, -^h »~ � .APX �iFNCRAL AGGfte,GAiL^ 2A0�000��..,.�,. _ Oe4. 1P.iAJGttQCYA' e0A ERUK. Lao Pao. ry AUYOAMIL01,IAIMLITY P I I ( � --- Pft4bUC'fS �,gMNK14rASSCY �(ZaQQ00�0 _•• 1 8 WHINED SWILEWIT X APIYAUr 6 # BC1DN.x IN.1UURV Ii'erpermn} (d 6 ALR Cri1RPEp IPCHEDULED X WROATOC 4Y ER AW 3 9898809 01 04/25/2014) 04/2512015 BoCa4� rN7URr{Nm awasFxi 5 2wdYl! hPE $ A4fo,; I ps � I UM ®R6u,a 41ka5 _ gCCUf� I Etres�"s'�r^iA�S^^^ I CLAIFDS�AIABE PLIiFUL IfiPa'CENTSONffi S. WORKIMSCOMMENSA"%pM ...., AND ra„p1PLOYew UAWLJTY Y � •. �W .... i .....,...,..»._w .......... ..._. ...... _,.., I _ ._.,..,.... ,,. &AGNCCCURNRI?CIE `S AteCInTC is •..:,•. �5 X..,:L. VTL& - 6 nNYaM _tlPgIAT'DIUiNRTN4W4xE0u'P(Y2 'R F^^^ E W23 9871564 01 001/2014 10310112015 � crwsto EM eae,LUnwe i_....1 iNrA 00.6 01, in Neff III EEe,plsEnsE,.nw�roLC+vE 1000000 i ..�....._......_,..,4"E U x1,000 000 EL tlISLA6B- POLi(,W LIMIT - WSCRIMION' 0RgPBRAT10wf 4"AMN8f O HIMM !AfbdbAC(M tut,Addli,onalR.,f W9 Rd+aduW,.!f Mom®rya "itMf;$md} Certificate Flolder is an Additional Insured pursuant to the toms and oonditlons of fmm; 3911006 (Businessownere Liability Special Broadening Endomament). Additional Insured is pnmaryand noncontrlbulory to the extent provided byform 3911381. City of Santa Ana 20 Civic Center Plaza Santa Ana, CA 92701 SHOULD ANY DP TI45 ABOVE Dt56CRIDW POLICIES BE CANCELLED IaZrORE THE EKPIRATION DATE THEREOP. NOTICE WILL BS DELIVERBD IN ACCORDANCE WITH THE POLICY PROVISION$. A UTHQmSd RFJ eahfTAPI\2 ACORO, 26 ('2010106) Thd ACORO name and logo Ore registered marks of ACORR nt§k Hanover Insurance Group® OTHER INSURANCE - PRIMARY AND NONCONTRIBUTORY (ADDITIONAL INSURED) ENDORSEMENT THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. This endorsement modifies Insurance provided under the following:Q BUSINESSOWNERS COVERAGE FORM ; The following Is added to SECTION III — COMMON POLICY CONDITIONS: M. Other Insurance (b) That Is Fire insurance for 1. Additional Insureds premises rented to the Additional Insured or temporarily occupied If you agree in a written contract, written by the Additional Insured with agreement or permit that the insurance permission of the owner; provided to any person or organization c That is insurance () purchased by included as an Additional Insured under the Additional Insured to cover the SECTION II - LIABILITY, Part C —Who is An Additional Insured's liability as a Insured, Is primary and non - contributory, the tenant for "property damage" to following applies: premises rented to the Additional If other valid and collectible insurance is Insured or temporarily occupied available to the Additional Insured for a loss by the Additional Insured with we cover under SECTION it — LIABILITY, permission of the owner; or Part A, Coverages, Paragraph 1., Business (d) If the loss arises out of the Liability our obligations are limited as follows: maintenance or use of aircraft, a. Primary Insurance "autos" or watercraft to the extent This insurance is primary to other not subject to Exclusion g. of insurance that is available to the SECTION 11 — LIABILITY, Part A. Additional Insured which covers the Coverages, 1. Business Additional Insured as a Named Insured. Liability. We will not seek contribution from any When this insurance is excess, we will other insurance available to the Additional have no duty under SECTION 11 — Insured except: LIABILITY, Part A. Coverages, 1. (1) For the sole negligence of the Business Liability to defend the insured "suit, Additional Insured; against any if any other insurer has a duty to defend the insured against that (2) When the Additional Insured is an "suit ". If no other insurer defends, we will Additional Insured under another undertake to do so, but we will be entitled primary liability policy; or to the insured's rights against all those (3) When b.(2) below applies. other insurers. If this insurance is primary, our obligations When this insurance is excess over other are not affected unless any of the other insurance, we will pay only our share of insurance is also primary. Then, we will the amount of the loss, if any, that share with all that other insurance by the exceeds the sum of: method described in b,(3) below. (2) The total amount that all such other b. Excess Insurance insurance would pay for the loss in the absence of this insurance; and This insurance is excess over: (3) The total of all deductible and self - (1) Any of the other insurance, whether insured amounts under all that other primary, excess, contingent or on any insurance. other basis: We will share the remaining loss, if any, (a) That is Fire, Extended Coverage, with any other insurance that is not Builder's Risk, Installation Risk or described in this Excess Insurance similar coverage for "your work "; provision and was not bought specifically to apply in excess of the Limits of 391-133106 09 Includes copyrighted material of Insurance Services Offices, Inc,., with its permission Page 1 of 2 Insurance shown in the Declarations of this Coverage Part. c. Method Of Sharing If all of the other insurance permits contribution by equal shares, we will follow this method also. Under this approach each insurer contributes equal amounts until it has paid Its applicable limit of insurance or none of the loss remains, whichever comes first. If any of the other insurance does not permit contribution by equal shares, we will contribute by limits, Under this method, each insurer's share is based on the ratio of its applicable limit of insurance to the total applicable limits of insurance of all insurers. 301-133106 09 Includes copyrighted material of Insurance Services Offices, Inc., with its permission Page 2 of 2 fa d' CERT'IFICAT'E OF LIABILITY INSURANCE 1 D TC(MMMD15Y) 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 pollcy(los) must 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 confor rights to the certificate holder in lieu Of Such endorsementisl. PROOVCER HUB INTERNATIONAL INS SERVICES INC 4371 LATHAM ST, STE 101 RIVERSIDE,CA 92501 . ,T___- .,,._..___._.__.......... ______.. _._.._... INTRED LINEAR SYSTEMS 8403 MAPLE PLACE RANCHO CUCAMONGA, CA 91739 daiiT90T fila3fndaFaa5 Nl TtfltlIV, lnllITAE[d � 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. IN9F ._._.__..,.., ..,,._— 'A1S'iSLiSOBR .,..•.,_ ........ ... ..... . .. POLIi.YE�f POLICY E %P _...... ,•, LTD TYPE OF INSURANCE POLI YNUM9ER MMJDDI,V YY IDONYVV LIMITS GENERAL LIABILITY EACH XCURRENCE 51,,0.0. D D00 X ._ OOMMERCAL G ENERAL LIABLD' ICLAIMS "bArcc J7REM'EU. - .. -. 300'000 I ,. S4,9 c. I.MEO A MADE X 0 CIIR 033989881502 04125/201,5 04/'+5/2016'4. E %P fAn one elan) i$ 10,000 PERSONAL a ADV INJURY I s 1 900 000 _I GENERAL AGGREGATE 5 2,000 000 6ENLAGGREGATE UN117APPLIES PER'. j c,IFdPIOP AaG s2,D_00000 „ ,j POLIGy PR¢ X LOC ,PRORIICTS _ YY AUTOMOBILE LIABILITY PU - _ C MD NE 3 G .. '.'IT 1,000 000 a q a X X Aim AUTO �I I _I!aac EODLY INJURY IPar suv,r] 5 B AUT05 E0 I AVICS EO AW3 9898809 02 04!25/2015 04/25/2016 "'BO6aY N uav iPer a deny s .. ... X NoknOv WED ( " -. PR5PERTY DAMAGE HIREDAUTOS ALVOS 1 (Pe1 ACo ru ,IS I —J VMBRELLA 1 OCCUF ji "�_� 1 F CH OCCURRENCE S T �. NGGR CATF 'S EXCESSIIAB CLAIMS MAOEI �_LIAB . .... DE1 1 RETENTION$ . S WORKERS COMP£N6ATION AND EMPLOYERS LIABILITY E 1 X RGSTAV OTH �._LTQRY L,7Mn$,I. ER _ B YJNi ANY ROPRIETOPoPFRTNER /EXECUTIVE OFIILUMDABER EXCLVOED9 [ 7 NrAI ( r W23987156402 63/01/2016 E l EACH ACCIDENT S 1 000 000 03/01/2016,._ __. IMn d I yl NHI f ya. dE 6na ,,dIN UESCRIPILI OF OPEPATIris Wn I ([ , �,EL US EASE .EA EdP CY E S 1 090 ODD . E L DISrA E - POLICY Lull I s 1 000,009 [F11— L .._- ..-..ddit.. DESCRIPTION OF OPEIW TIONe J LOCATIONe f VEHICLES (Attach ACORp iei, Additional Remarhz edretlule, if mere space Is regPirad) Certificate Holder Is an Additional Insured pursuant to the terms and Conditions of form: 3911006 (Businessowne UnabilQy Special Br daring Endorsement), Additional Insured Is primary and noncontributoryto the extent provided by form 391- 1331. /\ City of Santa Ana 20 Civic Center Plaza Santa Ana, CA 92701 SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WI IN THE POLICY PROVISIONS. AUTHORLED REPRESENTATIVE ©1966 -2010 ACORD ACORD 25 (2010105) The ACORD name and logo are registered marks of ACORD reserved. Client #: 269335 LINESYST ACORDo, CERTIFICATE OF LIABILITY INSURANCE F DATE ( MA11n0 YYYY) CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, 3/0512015 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(les) must 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 Ileu of such endorsement(s), PRODUCER Jennifer Housel HUB Int9 Insurance Serv. Inc. PHONE _ ac No Ext:877825.2661 AN,); 951231-2572 q License #0757776 'ADOaIESS CaI .CPUQhubinternational.com 4371 Latham St, Ste #101 EACH OCCURRENCE Riverside, CA 92501 , ..... INSURRRR) AFFORDING COVERAGE NAIC p .... ,_ INSURER A: Beazley Insurance Company, Inc. 37540 _ INSURED INSURER B pgM,q�E TO REN'rEO I PREMISES Ea occurrence Linear Systems -'-- - $ Chris Parsons dba: INSURER C: 8403 Maple Place INSURER D: Rancho Cucamonga, CA 91730 INSURER E: 5 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 CONTRACTOR 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 BEEN REDUCED BY PAID CLAIMS. INS L7R _ TYPE OFINSURANCE AOOL !R SUBR O _HAVE POLICY NUMBER POLICY EFpp MMIOD)YYYY POLICY EE%P MMIDDIY4Y9 LIMITS GENERAL LIABILITY EACH OCCURRENCE $ . ".." COMMERCIAL GENERAL LIABILITY CLAIMS MADE ❑ OCCUR', �, pgM,q�E TO REN'rEO I PREMISES Ea occurrence __ $ MEDEXP IAnyoneperson $ PERSONAL & AOV INJURY S GEN ERAL AGGREGATE 5 GEN'LAGGREGATE LIMITAPPLIES PER, _ -ECT El LOG PRODUCTS, COMP/OP AGE $ $ AUTOMOBILE LIABILITY -COMBINED SINGLE LIMIT BODILY INJURY (Per Person) $ AWAUTO ALLOWNED SCHEDULED AUTOS BODILY 80DILY INJURY (Per ecddanU 3 NON-OWNEO HIRED AUTOS _ AUTOS PROPERTY DAMAGE" Per accident $ _ -. 'L I.._ UMBRELLA LIAR .,_.. __ j OCCUR ........ EACH OCCURRENCE $ EXCESS LIAB CLAIMS -MADE AGGREGATE _ S t OED F I RETEN'rION8 S _ WORKERS COMPENSATION WC 3TATU- OTH -- I AND EMPLOYERS' LIABILITY ANY PRO PRIETORIPARTNER'EXECUTIVE YIN OFFICERIMEMBER EXCLUDED? NtA E L. EACH ACCIDENT $ El. DISEASE a EA EMPLOYEE $ (Mendatory,n Rill DyS RIPTI Nender DESCRIPTION OF OPERATIONS below E.L. DISEASE - POLICY LIMIT $ A )Professional V102F2150601 3/01/2015 03101/2016 $1,000,000 Each Claim Liability $1,000,000 Aggregate $10,000 Deductible DESCRIPTION OF OPERATIONS) LOCATIONS I VEHICLES (Attach ACORD 101, Additional Remarks Schedule, if more space Is required) Verification of Insurance. City of Santa Ana 20 Civic Center Plaza 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, AUTHORIZED REPRESENTATIVE R) 1aR9.21110 ACORn On RIDERATION All dntrrc —.—A ACORD 25 (2010/05) 1 oil The ACORD name and logo are registered marks of ACORD #S3386319/M3386234 S042 4k, HTanover Insurance Groupm OTHER INSURANCE - PRIMARY AND NON - CONTRIBUTORY (ADDITIONAL INSURED) ENDORSEMENT THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. This endorsement modifies insurance provided under the following: BUSINESSOWNERS COVERAGE FORM The following is added to SECTION III — COMMON POLICY CONDITIONS: M. Other Insurance 1. Additional Insureds If you agree in a written contract, written agreement or permit that the insurance provided to any person or organization included as an Additional Insured under SECTION 11 - LIABILITY, Part C — Who is An Insured, is primary and non - contributory, the following applies: If other valid and collectible insurance is available to the Additional Insured for a loss we cover under SECTION II — LIABILITY, Part A. Coverages, Paragraph 1., Business Liability our obligations are limited as follows: a. Primary Insurance This insurance is primary to other insurance that is available to the Additional Insured which covers the Additional Insured as a Named Insured. We will not seek contribution from any other insurance available to the Additional Insured except: (1) For the sole negligence of the Additional Insured; (2) When the Additional Insured is an Additional Insured under another primary liability policy; or (3) When b.(2) 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 b.(3) below. b. Excess Insurance (b) That is Fire insurance for premises rented to the Additional Insured or temporarily occupied by the Additional Insured with permission of the owner; (c) That is insurance purchased by the Additional Insured to cover the Additional Insured's liability as a tenant for "property damage" to premises rented to the Additional Insured or temporarily occupied by the Additional Insured 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 Exclusion g. of SECTION II — LIABILITY, Part A. Coverages, 1. Business Liability. When this insurance is excess, we will have no duty under SECTION II — LIABILITY, Part A. Coverages, 1. Business 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 insured's rights against all those other insurers. When this insurance is excess over other insurance, we will pay only our share of the amount of the loss, if any, that exceeds the sum of: (2) The total amount that all such other insurance would pay for the loss in the absence of this insurance; and This insurance is excess over: (3) The total of all deductible and self - (1) Any of the other insurance, whether insured amounts under all that other primary, excess, contingent or on any insurance. other basis: We will share the remaining loss, if any, (a) That is Fire, Extended Coverage, with any other insurance that is not Builder's Risk, Installation Risk or described in this Excess Insurance similar coverage for "your work "; provision and was not bought specifically to apply in excess of the Limits of 391 -1331 06 09 Includes copyrighted material of Insurance Services Offices, Inc., with its permission Page 1 of 2 Insurance shown in the Declarations of this Coverage Part. c. Method Of Sharing If all of the other insurance permits contribution by equal shares, we will follow this method also. Under this approach each insurer contributes equal amounts until it has paid its applicable limit of insurance or none of the loss remains, whichever comes first. If any of the other insurance does not permit contribution by equal shares, we will contribute by limits. Under this method, each insurer's share is based on the ratio of its applicable limit of insurance to the total applicable limits of insurance of all insurers. 391 -1331 06 09 Includes copyrighted material of Insurance Services Offices, Inc., with its permission Page 2 of 2