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HomeMy WebLinkAboutCAG1991-0066 - Original - Bell-Anderson Agency, Inc - Inland Marine Insurance Policy - 08/01/1991 DELIVERY INVOICE Mill Company: ST. PAUL FIRE b MARINE INSURANCE COMPANY I Policy Inception/Effective Date: 08/01/91 N Agency Number: 4604493 S Transaction Type: U CITY OF KENT RENEWAL OF POLICY R 220 S. 4TH Transaction number: 001 E KENT WA 98031 Processing date: 08/26/91 16:40 D Policy Number: IM08400257 A BELL-ANDERSON AGENCY INC G P.O. BOX 887 E KENT WA 98035-0998 N T Policy Description Amount Surtax/ Number Surcharge IM08400257 INLAND MARINE POLICY $3,487.00 40724 Ed.12-90 Printed in U.S.A. Page 1 INSURED COPY INTRODUCTION AsaVl This policy protects against a variety of losses. There are also some restrictions. We've Policy Number: IM08400257 written this policy in plain, easy-to-understand English. We encourage you to read it carefully NORTHWEST to determine what is and what is not covered, 9709 THIRD AVENUE, N.E. as well as the rights and duties of those P.O. BOX 91009 protected. SEATTLE WA 98111 In return for your premium, we'll provide the Your policy is composed of General Rules, an protection stated in this policy. explanation of What To Do If You Have A Loss, one or more Coverage Summaries, and one or We, us, our and ours mean St. Paul Fire and Marine more Insuring Agreements explaining your Insurance Company. We're a capital stock coverage. It may also include one or more company located in St. Paul, Minnesota. endorsements. Endorsements are documents that change your policy. The Policy Forms List The words you, your and yours mean the shows all the forms included when this policy insured named here, which is a begins. MUNICIPALITY One of our authorized representatives will also CITY OF KENT countersign the policy. 220 S. 4TH KENT WA 98031 This policy will begin on 08/01/91 and will continue until 08/01/92 Your former policy number is automatically replaced: RENEWAL Your premium for the policy period shown is: $3,487.00 However, please refer to the Premiums section of the General Rules to see how final premiums are determined. Our authorized representative is: 4604493 i BELL—ANDERSON AGENCY INCu� P.O. BOX 887 /1 President. KENT WA 98035-0998 Authoriz Represents Date secretary ,,�" , ! -� � � �2��j Processing Date 08/26/91 16:40 001 40800 Ed.5-87 rinted it U.S.A. Introduction ®St.Paul Fire and Marine Insurance Co.1984 Page 1 of 2 POLICY FORM LIST imul Here's a list of all forms included in your policy, on the date shown below. These forms ire listed in the same order as they appear in your policy. Title Form Number Edition Date Introduction (St. Paul Fire and Marine) 40800 05-87 Policy Form List 40705 05-84 General Rules - Washington 40767 05-90 What To Do If You Have A Loss 40803 06-89 Computer Property Protection Coverage Summary 42442 11-89 Computer Property Protection Coverage Summary - Continued 42448 11-89 Computer Property Protection 42441 11-89 Computer Virus Endorsement 42443 11-89 Breakdown Coverages Deductible 40502 01-80 Name of Insured Policy Number iM08400257 Effective Date 08/01/91 CITY OF KENT Processing Date 08/26/91 16:40 001 40705 Ed.5-84 Printed in U.S.A. Form List ©St.Paul Fire and Marine insurance Co.1991 Page 1 GENERAL RULES — WASHINGTON Amyl These rules apply to the entire policy unless you're notified otherwise. Special Rights And Duties Of The First Named Insured agent can explain the type of records we'll need. The first named insured agrees to send You agree that when more than one insured is copies of these records at the end of each named in the introduction, the first named policy period - or any other time we request insured has special rights and duties. These them. rights and duties are explained in the following General Rules: •Premiums. Our Right To Inspect And Audit •Cancellation. •Policy Changes. You agree to let us inspect your property and business operations during normal business hours while this policy is in force. We're not, Your Policy Period however, required to make inspections. Nor will we guarantee that your property or oper- Insuring agreements in this policy begin at ations are safe, or that they conform to any 12:01 a.m., standard time, on the effective date. laws, codes, standards or regulations. This rule If this policy replaces policies ending at noon, also applies to any organization which makes rather than 12:01 a.m., coverage begins at noon insurance inspections, surveys, reports or when the old policy ends. recommendations for us. Insuring agreements added to this policy after You also agree to let us examine and audit,your its effective date begin on the effective date of financial books and records that relate to this the added agreement. insurance at any time up to 3 years after this policy ends. Coverage ends at 12:01 a.m., standard time, on the expiration date. If all or part of this policy is cancelled for any reason before that date, Policy Changes that coverage wi I I end at 12:01 a.m., standard time, on the cancellation date. This policy contains all the agreements between you and us concerning this insurance. The first named insured is authorized to make Premiums changes in this policy with our consent. This policy can only be changed by a written form We compute the premium you pay for this included as part of the policy. This form must policy using information available at the time. be signed by one of our authorized represen- So, all or part of your premium may be based tatives. on estimates. If estimates are used, we'll compute your actual premium when complete We make changes in our standard insurance information is available at the end of the policy policy forms from time to time. These period. If it's more than you've paid, you'll changes must conform to state law and are owe us the difference. If it's less, we'll return filed with insurance supervisory authorities for the difference. But you won't pay less than any approval. While your coverage is in force we minimum annual premium agreed on. The first can make any change in the form of this policy named insured is responsible for paying all that broadens or extends your coverage. If we premiums and will be the one to whom we'll pay do, and the change can be added to your policy any return premiums. without increasing the premium, you'll automat- ically receive the benefit of the extended or You must keep accurate records of the informa- broadened coverage on the day the change is tion we'll need to compute your premium. Your effective in your state. 40767 Rev.5-90 Printed in U.S.A. General Rules ®St.Paul Fire and Marine Insurance Co.1990 All Rights Reserved Page 1 of 6 Maul Assignment And Transfers same time that we send notice to the first named insured or 20 days before coverage will Neither you nor anyone else covered under this end, whichever is earlier. policy can assign or turn over your interest in it without our written consent attached to the Cancellation effective date. The cancellation policy. notice we send will show a cancellation date. That date is when coverage will end. The first However, there is one exception. If you are an named insured will get a refund for any unused individual named insured and you die, your premium. We'll figure the refund on a pro-rata rights and duties will be transferred to your basis. But cancellation will be effective legal representative; but only while acting whether or not we've made or have offered to within the scope of duties as your legal repre- make a refund. sentative. Until your legal representative is appointed, anyone having temporary custody of If notice is mailed, proof of mailing to the first your property will have your rights and duties named insured's last mailing address known to concerning that property. us will be considered proof you were notified. The next two sections explain additional cancel- Cancellation lation rules that apply only if your policy includes the type of protection described. The first named insured can cancel this policy in whole or part at any time. Additional rule for property policies. If your policy includes property insurance, we can also How you can cancel. To cancel, the first named cancel if two or more of the following reasons insured must deliver the policy or the part to be exist: cancelled to us or to any of our authorized agents. If this isn't possible, notify us by mail 1. Unoccupied building. and include the date coverage is to end. We'll The building we're insuring is unoccupied, with- refund the unused premium to the first named out a reasonable explanation, for more than 60 insured, less a charge for early cancellation. consecutive days. Or the building is for multi- The refund amount will be at least 90% of the unit rental purposes, and at least 65% of the unused premium, which is figured on a pro-rata rental units are unoccupied for more than 120 basis. days in a row. But this reason doesn't apply if the building is used for seasonal purposes, or is How we can cancel. We can cancel only by under repair. following the rules in the remainder of this section. Any notice of cancellation that we 2. Fixtures and other salvageable items send in any case will include the reason for removed. cancellation. The fixtures and other salvageable items have been removed from a building we're insuring, If we cancel for nonpayment of premium, we'll showing that the building is about to become mail or deliver a notice to the first named unoccupied. insured and your agent or broker at least 10 days before cancellation takes effect. If we 3. Failure to make needed repairs. cancel for any other reason, we'll mail or The building we're insuring has been damaged deliver a notice to the first named insured and by fire, the loss has been adjusted, and you've your agent or broker at least 45 days before received the funds to make needed repairs. cancellation takes effect. However, there hasn't been reasonable progress toward completing those repairs within 60 days We'll also send a notice to any mortgage of receiving the funds. holder, and any other person or organization named in this policy as having an interest in 4. Building in poor repair. covered property to be paid under this policy. The physical condition of a building we're insur- We'll mail this notice to the person or organiza- ing is such that it is in danger of collapse. tion's last address known to us at either the Page 2 of 6 ®St.Paul Fire and Marine Insurance Co.1990 All Rights Reserved Asubul 5. Building condemned or ordered vacant. If your policy has been in effect 30 days or The building we're insuring has been ordered more, we'll send notice of cancellation at least demolished, vacated, or the building has been 20 days before coverage will end. declared unsafe according to the local building code that applies. If your policy has been in effect 60 days or more, or is a renewal or continuation policy, 6. Utilities not provided. we'll send a notice of cancellation at least 20 The building we're insuring has been without days before coverage will end. But we can heat, water, sewer and electricity for 60 days in only cancel if your driver's license, or the a row. license of any driver who usually uses a covered auto has been suspended or revoked 7. Building not kept up to code. during the policy period. The building we're insuring is not kept up to the local building code requirements that apply. Nonrenewal. We may decide not to renew your policy. If so, we'll send a notice of nonrenewal If we cancel your property insurance for these to the first named insured at least 45 days reasons, we'll mail or deliver a notice of before the expiration date of your policy, or the cancellation to the first named insured and the anniversary date if the policy has been in effect first named insured's agent or broker at least 5 one year or more. days before coverage will end. We'll also send a notice to any mortgage We'll also send a notice to a mortgage holder or holder, and any other person or organization any other person or organization shown in the named in this policy as having an interest in Coverage Summary as having an interest in covered property at ►east 45 days before the covered property. expiration date of the policy. The notice will show the reason for nonrenewal. How we can cancel certain auto policies. If your policy includes auto insurance, you are an indi- Otherwise, we will renew the policy unless: vidual, a covered auto you own is of the private •the first named insured fails to pay any passenger type, and the policy doesn't cover a: premium when due after we have offered to •repair garage; renew this policy at least 20 days before the *auto dealership; expiration date; or •service station; or •you have obtained other insurance prior to the •public parking place; expiration of this policy. the following cancellation rules apply. Nonrenewal of certain auto policies. If your policy We'll mail or deliver a notice of cancellation to includes auto insurance, you are an individual, a the first named insured, or the first named covered auto you own is of the private passen- insured's agent or broker, at least 10 days ger type, and the policy doesn't cover a: before coverage will end if your policy has •repair garage; been in effect less than 30 days, or if we're •auto dealership; cancelling for nonpayment of premium. •service station; or •public parking place; We'll also send a notice to any mortgage we can send notice of nonrenewal to the first holder, and any other person or organization named insured or that person's agent or broker named in this policy as having an interest in at least 20 days before the expiration date of covered property to be paid under this policy. the policy. The notice will show the reason for We'll mail this notice to the person or organiza- nonrenewal. If the policy period is for more tion's last address known to us at either the than one year, we can only decide not to renew same time that we send notice to the first your policy at an anniversary date. If we offer named insured or 20 days before coverage will to renew your policy, and you don't accept, end, whichever is earlier. your policy will end on the expiration date. If you fail to pay any renewal premium when due, we'll consider this to mean that you don't accept our offer. 40767 Rev.5-90 Printed in U.S.A. General Rules ©St.Paul Fire and Marine Insurance Co.1990 All Rights Reserved Page 3 of 6 Maul We won't refuse to renew your Liability or If your policy includes liability insurance. No one Collision coverage only because you have can sue us on a liability claim until the amount submitted claims under Comprehensive, or of the protected person's liability has been Towing coverage. finally decided either by a trial or by a written agreement signed by the protected person, by If we fail to mail or deliver proper notice of us and by the party making this claim. Once nonrenewal to you, and you obtain other insur- liability has been determined by judgment or by ance, this policy will end on the effective date written agreement, the party making the claim of that other insurance. may be able to recover under this policy, up to the limits of coverage that apply. But that party can't sue us directly or join us in a suit against Recovering Damages From A Third Party the protected person until liability has been so determined. Any person protected under this policy may be able to recover all or part of a loss from some- If the protected person or his or her estate goes one other than us. Because of this, each bankrupt or becomes insolvent, we'll still be protected person must do all that's possible to obligated under this policy. preserve any right of recovery available. Any recovery for all or part of a loss from Arbitration Of Property Disputes someone other than us will be paid to each protected person under this policy. After each If your policy includes property insurance and protected person has been fully paid for their agreement can't be reached on the amount of loss, the remaining part of the recovery will your property loss, the following procedure will belong to us, to the extent that we have paid be used: under this policy. 1. One of us will make a written demand for arbitration. How State Law Affects This Policy 2. Each will select an appraiser and decide on a reasonable time and place for an appraisal of Any part of this policy that conflicts with state the loss and damage. law is automatically changed to conform to the 3. The appraisers will agree on a competent and law. impartial umpire. If they can't agree on an umpire within 15 days, a judge in the state where the appraisal is to be held will be asked Provision Required By Law to pick one. 4. The appraisers will each compute the loss "This policy is issued under and in pursuance of and state the actual cash value of the property the laws of the State of Minnesota, relating to at the time of loss and the amount of the loss. Guaranty Surplus and Special Reserve Funds." If they don't agree, they'll submit their Chapter 437, General Laws of 1909. (This appraisals to the umpire. Agreement of two out provision applies only if this policy is issued in of three will decide the amount of the loss. the St. Paul Fire and Marine Insurance Company.) You'll pay your appraiser and we'll pay ours. Other costs of the appraisal and the umpire will be shared equally by you and us. Lawsuits Against Us No one can sue us to recover under this policy Liability Protection unless all of its terms have been lived up to. If your policy includes liability protection, your If your policy includes property insurance. Any liability agreement may include a section which lawsuit to recover on a property claim must explains how the limits of coverage apply if a begin within 2 years after the date on which the total limit entry in your coverage summary is direct physical loss or damage occurred. Page 4 of 6 ®St.Paul Fire and Marine Insurance Co.1990 All Rights Reserved ASQUI left blank. If so, that section in your liability required to be given the named insured, by law agreement is replaced by the following. or by the policy provisions, whichever is more favorable to the secured party. How the limits of coverage apply if a total limit is left blank. If the amounts of a General Total 5. If the insured fails to render proof of loss Limit or Products and Completed Work Total within the time granted in the policy conditions, Limit that apply are left blank in the Coverage such secured party shall do so within sixty (60) Summary, that total limit will be considered to days after having knowledge of a loss, in form be twice the each event limit that applies. and manner as provided by the policy, and, further, shall be subject to the provisions of the The same procedure is to be used if the policy relating to appraisal and the time of amounts of a Personal Injury and Advertising payment and bringing suit. Injury Total Limit that applies is left blank. 6. Whenever the Company shall pay the secured party any sum for loss or damage under such Property Protection policy and shall claim that, as to the insured, no liability exists, the Company shall, to the extent If your policy includes Property Protection, the of such payment, be thereupon legally subro- If Your Building Is Mortgaged section is gated to all the rights of the party to whom such replaced by the following. payment shall be made, under all collateral held to secure the debt, or may, at its option, pay to 1. Loss or damage, if any, under this policy shall the secured party the whole principal due or to be payable first to the loss payee or mortgagee grow due on the mortgage or other security (hereinafter called secured party), and, second, agreement, with interest, and shall thereupon to the insured, as their interests may appear; receive a full assignment and transfer of the PROVIDED, That, upon demand for separate mortgage or other security agreement and of all settlement by the secured party, the amount of collateral held to secure it; but no subrogation said loss shall be paid directly to the secured shall impair the right of the secured party to party to the extent of its interest. recover the full amount due it. 2. This insurance as to the interest of the 7. All terms and conditions of the policy remain secured party shall not be invalidated by any unchanged except as herein specifically act or neglect of the insured named in said provided. policy or his agents, employees or represen- tatives, nor by any change in the title or owner- 8. All notices sent to the secured party shall be ship of the insured property; PROVIDED, sent to its last reported address, which must be HOWEVER, That, the conversion, embezzlement stated in the policy. or secretion by the named insured or his agents, employees or representatives is not covered under said policy unless specifically insured Volcanic Action against and premiums paid therefore. If your policy includes Property Protection, the 3. In applying the pro rata provisions of the following rule is added for debris removal. policy, the amount payable to the secured party shall be reduced only to the extent of pro rata Debris removal. we'll pay for the removal of payments receivable by the secured party under ash, dust or particles from covered property other policies. including costs to clean equipment and stock. We'll pay this as part of the direct loss to the 4. The Company reserves the right to cancel the covered property. And, if stock can't be policy at any time as provided by its terms, but returned to its condition before the volcanic in such case the Company shall mail to the eruption, we'll pay for the loss based on its secured party a notice stating when such actual cash value. cancellation shall become effective as to the interest of said secured party. The amount and Payment for debris removal applies to the form of such notice shall be not less than that initial deposit of ash, dust or particles from a 40767 Rev.5-90 Printed in U.S.A. General Rules ®St.Paul Fire and Marine Insurance Co.1990 All Rights Reserved Page 5 of 6 Maul volcanic eruption. We won't cover the removal ACtual CaSh value means: of subsequent deposits of ash or dust which is *when damage to property is repairable and that caused by wind or other means. repair is economically feasible, the cost of repairing the damage, less a reasonable deduction for wear, tear, deterioration, and Collapse Coverage obsolescence; or •when damage to property is a total loss, the If your policy includes Property Protection, the market value of property in a used condition "Wear -tear -deterioration - animals" exclusion that's the same as the destroyed property, if doesn't apply to Collapse coverage. such used property is reasonably available on the market; or •otherwise the market value of new, identical, Property Protection Or Businessowners Insurance or nearly identical property, less a reasonable deduction for wear, tear, deterioration, and If your policy includes Property Protection or obsolescence. Businessowners Insurance, the following defi- nition of Actual Cash Value applies. Page 6 of 6 ©St.Paul Fire and Marine Insurance Co.1990 All Rights Reserved WHAT TO DO IF YOU HAVE A LOSS Loss Or Damage To Covered Property Someone Is Injured Or Something Happens Which Can Result In A Liability Claim If an accident or incident causes a property loss that's covered under this policy you must: If an accident or incident occurs that may involve this policy, you or any other protected 1. Notify the police if a law may have been person involved must: broken. 1. Notify the police if a law may have been 2. Tell us or our agent what happened as soon broken. as possible. Include the time and place of the event, a description of the property and the 2. Tell us or our agent what happened as soon names and addresses of any witnesses. as possible. Do this even though no claim has been made but you or another protected person 3. Do what is reasonable and necessary to is aware of having done something that may protect covered property from further damage. later result in a claim. This notice should Keep a record of your expenses for include: consideration in your claim. *The time and place of the event; *The protected person involved; 4. If feasible, separate the damaged property •The specific nature of the incident including from the undamaged and make an inventory of the type of claim that may result; and the damaged items. This doesn't apply to Auto *The names and addresses of any witnesses insurance if included in your policy. and injured people. 5. Cooperate with us in the investigation and Important Notice For Health Care Providers settlement of the claim. Show us the damaged If Your policy includes one of our Medical property and any records pertaining to your Professional Liability Protection - Claims-Made loss at such times as may reasonably be agreements, you should also read the When This required. Also permit us to take samples of Agreement Covers Section of that agreement. damaged property for inspection, testing, and We won't consider a "Patient Incident Report," analysis. If your loss involves a covered auto, "Variance Report," or any other report made for permit us to inspect the auto before it is loss prevention purposes to be a report of your repaired or disposed of. claim. Even if you send it to us or one of our agents. 6. Allow us to question you under oath while not in the presence of any other insured. You 3. Send us copies of all demands or legal docu- must do this whenever reasonably required ments if someone makes a claim or starts a about any matter relating to this insurance or lawsuit. your claim, including your books and records. If we do, you agree to sign a copy of your 4. Cooperate and assist us in securing and answers. giving evidence, attending hearings and trials, and obtaining the attendance of witnesses. 7. Send us a signed, sworn statement of loss containing the information we request to 5. Not assume any financial obligation or pay investigate the claim. You must do this within out any money without our consent. But this 60 days after our request. We'll supply the rule doesn't apply to first aid given to others at forms. We'll pay within 30 days after we reach the time of an accident. agreement with you. 40803 Ed.6-89 Printed in U.S.A. What To Do If You Have A Loss ®St.Paul Fire and Marine Insurance Co.1989 All Rights Reserved Page 1 of 1 COMPUTER PROPERTY PROTECTION COVERAGE SUMMARY Mal This Coverage Summary shows the limits of coverage and displays other information that affects your insurance. You have only those coverages for which a limit is shown or which are otherwise indicated. Locations of Property to be covered: Loc. No. Address 1 220 South Fourth, Kent, Washington (City Hall) 2 400 West Gowe St, Kent Washington (Centennial Building) 3 Any other location within the United States Computer Equipment Coverage How we'll figure your loss Replacement Actual Cash Upgraded While in Loc. No. Limit Cost Value Value Transit 1 $ 1,081,848 ® ❑ ❑ $ 10,000 2 $ 112,773 ® ❑ ❑ 3 $ 75,000 ® ❑ ❑ Data and Media Coverage Combined Data While in Transit Data Limit Media Limit and Media Limit Loc. No. 1 $ $ $ 100,000 $ 10,000 We'II figure the value of Data to be its actual replacement cost unless a specific amount per article is listed below: Loc. No. Specific Articles No. Value of each Total Value Extra Expense Coverage Business Income Coverage Loc. No. Limit Loc. No. Each Working Day Limit Total Limit 1 $ 100,000 $ $ Name of Insured Policy Number IM08400257 Effective Date 08/01/91 CITY OF KENT Processing Date 08/26/91 16:40 001 42442 Ed.11-89 Printed in U.S.A. Coverage Summary @St.Paul Fire and Marine Insurance Co.1989 All Rights Reserved Page 1 of 1 COMPUTER PROPERTY PROTECTION agaVl COVERAGE SUMMARY — CONTINUED Policy Deductibles Basic Deductible: applicable to all losses that result from any one event to: Computer Equipment, Data and Media and Extra Expense Combined $ 1,000 Special Breakdown Deductible $ Special Business Income Deductible $ hours days Additional Benefits — Increased Limits increased to $ increased to $ increased to $ Computer Virus Limitation No limitation is applicable ® Coverage excluded per Computer Virus Endorsement # 42443, (11-89) Computer Virus limit $ California Earthquake Limitation — applicable to all California locations and coverages F� No limitation is applicable Limit of Coverage $ Earthquake Deductible $ Who We'll Pay For Loss To Equipment Name of Insured Policy Number IM08400257 Effective Date 08/01/91 CITY OF KENT Processing Date 08/26/91 16:40 001 42448 Ed.11-89 Printed in U.S.A. Coverage Summary ®St.Paul Fire and Marine Insurance Co.1989 All Rights Reserved Page 1 of 1 COMPUTER PROPERTY PROTECTION We've designed this agreement to protect your computer equipment, data and media from a variety of losses including extra expense and business income. Table of Contents Page What This Agreement Covers What This Agreement Covers 1 We'll protect covered property against risks of Limits Of Coverage 1 direct physical loss unless excluded in the Where We Cover 1 Exclusions -Losses We Won't Cover section. Property Covered 1 We'll also cover Extra Expense and Business Property Not Covered 2 Income when indicated in the Coverage Extra Expense 2 Summary. Business Income 2 When we use the word "loss" in this agreement Additional Benefits 3 we also mean damage. Newly Acquired Equipment 3 New Locations 3 Backup Location Coverage 3 Limits Of Coverage Temporary Location 3 Halon And Carbon Dioxide Discharge 3 The limits that apply to computer equipment, Removal Coverage 3 data and media, extra expense coverage and Debris Removal 4 business income coverages are shown in the Interruption By A Civil Authority 4 Coverage Summary. These limits are the most we'll pay under these coverages no matter how Breakdown Coverage 4 many protected persons are involved or how many claims are made involving one event. Exclusions - Losses We Won't Cover 4 Separate limits are shown for each location and each type of coverage. Rules For Loss Adjustment 6 Computer, Data and Media 6 Items in transit are covered up to the transit 1. How Your Property Is Valued 6 limit shown in the Coverage Summary. This What We'll Pay For Data And Media Losses 7 limit also applies to newly acquired equipment What We'll Pay For Extra Expense Losses 7 being moved to a covered location as well as What We'll Pay For Business Income Losses 7 covered property being moved to a new 2. Deductibles 8 location. If no transit limit is shown, there is 3. Other Insurance 8 no coverage while items are in transit. Other Computer Insurance 8 Other Property Insurance 8 There are two limits that apply to the business Other Extra Expense Or Business Income income coverage. The "each working day Insurance 9 limit" is the most we'll pay per 24-hour day when you would normally conduct business. Other Rules For This Agreement 9 The "total limit" is the total we'll pay for each Insurance For Your Benefit 9 interruption at any one location. Adjusting Losses 9 Who We'll Pay For Loss To Equipment 9 Preserving Your Rights 9 Where We Cover Expenses For Reducing Loss 9 We'll cover losses that occur at the locations shown in the Coverage Summary, or while in transit within the United States of America, Puerto Rico or Canada, or between any of these places. 42441 Ed.11-89 Printed in U.S.A. Insuring Agreement 34L ®St.Paul Fire and Marine Insurance Co.1989 All Rights Reserved Page 1 of 9 A80W Property Covered *program supportive documentation such as flowcharts, record formats or narrative The description of covered property and limit descriptions except as they are converted to of coverage are shown in the Coverage data form and then only in that form; Summary. In this section we explain what is included under the listed coverages. *accounts, bills, valuable papers; Computer Equipment We'll cover computer *records, abstracts, deeds, manuscripts; or equipment you own, rent or for which you are legally responsible. *other documents except as they are converted to data form and then only in that form. Computer equipment means a network of machine components capable of accepting information, processing it according to plan and Extra Expense producing the desired results. It includes air conditioning, fire protection equipment and We'll cover extra expense necessary to electrical equipment used exclusively in your continue your computer operations. computer operations. However, it doesn't include data and media. Extra expense is any operating expense over an above what it would normally cost to Data and media. We'll cover data and media you conduct your computer operations. own or for which you are legally responsible. We'll pay for actual loss up to the limit of Data means facts, concepts or instructions in coverage when the following conditions are a form usable for communications, interpreta- met: tion or processing by automatic means. It includes computer programs. 1. The expense is necessary to continue your normal computer operations. Media means materials on which data is recorded, such as magnetic tapes or disk packs. 2. The expense results from direct damage to any of the following: Coverage for checks. If you are a financial insti- •your computer equipment, data and media; or tution, we'll cover the replacement of the •the building housing your computer operations following items as data when they are in the or other property in the building or within 1,000 form indicated: feet of it, if the damage prevents you from using your computer facilities. *Checks that are cashed or deposited. Cover- age begins when their face value has been encoded on them. Business Income *Other documents. Coverage begins when the code numbers that apply have been encoded on We'll cover loss of business income resulting them. from the interruption of your computer opera- tion caused by damage to or destruction of any However, we cover these only for their value as of the following: data, not for their face value. •your computer equipment, data, media; or •the building housing your computer operations Property Not Covered or other property in the building or within 1,000 feet of it, if the damage prevents you from We won't cover the following property: using your computer facilities. *data or media which can't be replaced with others of the same kind or quality, unless insured for a specific amount per article; Page 2 of 9 ®St.Paul Fire and Marine Insurance Co.1989 All Rights Reserved 890111 Business income means the net income, which We'll also cover newly acquired equipment, is the net profit or loss before income taxes, data and media up to a combined limit of that would have been earned or incurred and $500,000 at any newly acquired location not continuing normal operating expenses that are shown in the Coverage Summary. incurred. This includes payroll. You must report the moving of insured property Business income includes the net income attrib- or the acquisition of any new location within 60 utable to prototypes, project research and days of moving or acquiring or your coverage at development documentation. the new location will end at that time. Prototype means the first or original model of While equipment, data or media is in transit to a a new type of design. new location, the transit limit applies. Project research and development documentation means written, printed, or Backup Location Coverage otherwise inscribed documents, plans and records directly associated with your research We'll cover your data and media up to $50,000 and development operations. at any one backup location. If you need a higher limit, it must be specifically shown on the Coverage Summary for each location. Additional Benefits To qualify for this additional coverage, each backup location must be in a separate building at least 100 feet away from your main computer All the following benefits are in addition to the operation. limits of coverage shown on the Coverage Summary. Temporary Location Newly Acquired Equipment We'll cover your computer equipment, data and media for up to $500,000 for direct physical We'll cover additional computer equipment you loss while temporarily within the premises of acquire while this agreement is in effect. others for purposes other than storage. We'll increase your computer equipment cover- This coverage extension is provided for a maxi- age limit up to an additional $500,000 to cover mum of 60 days while at any temporary newly acquired equipment at any location location. shown on the Coverage Summary. You must report the additional value of all newly acquired equipment to us within 60 days of acquiring it Halon And Carbon Dioxide Discharge or the additional limit ends at that time. An additional premium will be due from the day the We'll pay the cost to refill halon or carbon diox- equipment was acquired. While newly acquired ide extinguishing systems which protect your equipment is in transit, the transit limit applies. computer operations when they discharge as intended to control a loss covered by this agreement. New Locations In addition, we'll cover the cost to refill these If equipment, data or media we cover at a systems should they accidentally discharge. location shown in the Coverage Summary is moved to a new location, we'll automatically We won't cover any loss that happens at the cover these items at your new location. time of installation, testing, repair or recharging of the halon or carbon dioxide system. 42441 Ed.11-89 Printed in U.S.A. Insuring Agreement 34L ®St.Paul Fire and Marine Insurance Co.1989 All Rights Reserved Page 3 of 9 �St�ul Removal Coverage 1. Mechanical breakdown. We'll cover loss or damage to your covered computer equipment, We'll cover your computer equipment, data, data and media inside your building or within media and computer programs while they're 1,000 feet of it caused by mechanical break- away from a covered location at a safe place down or malfunction of your computer equip- because of imminent danger of loss. And we'll ment. cover those items while they're being moved to and from that safe place. yThe ou must tell transit d e`xamp/ego acrash.covered mechanical break— limit does not apply. But y within 10 days after you move them for this coverage to apply. 2. Electrical breakdown. We'll cover short-cir- cuit, blow-out, electrical or magnetic injury or disturbance or other electrical damage to: Debris Removal *covered computer equipment, including wiring. •covered data and media. If your equipment, data or media is damaged or This includes any accidental erasure of data destroyed by a covered cause of loss, we'll pay the cost of removing its debris. caused by electrical or magnetic injury, or oper- ator or programmer error. Interruption By A Civil Authority But to be covered, the cause of the electrical damage must occur within your building or A civil authority like a fire department may within 1,000 feet of it. delay access to your covered location because property adjacent to your location is damaged However, we won't cover any breakdown or or destroyed. If the damage is caused by a malfunction loss caused by any change in the covered cause of loss and we insure Extra electrical power supply, such as interruption, Expense or Business Income, we'll pay your power surge or brown-out, if the change origi- necessary extra expense or business income for nates more than 1,000 feet from the building up to 2 consecutive weeks while access is containing your computer equipment, unless denied. this agreement is amended in writing by us. We'll consider providing breakdown coverage beyond 1,000 feet for an additional premium if you have implemented the proper controls. Breakdown Coverage We'll cover insured property for loss caused by Exclusions — Losses We Won't Cover mechanical or electrical breakdown. If you insure extra expense and business income we'll Dishonesty. We won't cover any loss caused by also cover such losses when caused by break- down damage to computer equipment, data or any fraudulent, dishonest or criminal act media from these causes. committed by you or by a partner, director, officer, trustee, agent or employee of yours. But we won't cover extra expense or business Nor will we cover dishonest acts of anyone income losses that result from the breakdown entrusted with covered property. But this of any other property such as a boiler. exclusion won't apply to acts of destruction by an employee of yours other than theft. A special breakdown deductible applies to mechanical and electrical breakdown as well as Wear—tear—deterioration. We won't cover loss certain other causes of loss. This deductible is caused or made worse by: shown on the Coverage Summary and is *wear and tear; or described in the Deductible section of this *gradual deterioration. form. Page 4 of.9 OSt.Paul Fire and Marine Insurance Co.1989 All Rights Reserved AGN111 War and government seizure. We won't cover while they're being worked on, repaired or loss caused directly or indirectly by any of the serviced. But we'll cover loss to these items following. Such loss is excluded regardless of caused by a covered cause of loss which results any other cause or event that contributes from that work, repair or service. concurrently or in any sequence to the loss: For example, we won't pay to replace a disk *war (declared or undeclared); drive which is damaged while being serviced. *warlike action by a military-force, including We'll pay for the other damage that results from anything done to hinder or defend against an use of that damaged part. actual or expected attack, by any government, sovereign or other authority using military The special breakdown deductible applies to personnel or other agents; these covered losses. •invasion or insurrection; *rebellion, revolution or civil war; Delay — loss of market. We won't cover any loss *seizure of power; or caused by delay or loss of market. *anything done to hinder or defend against these actions. Programming errors. We won't cover any extra expense or business income loss caused by We won't cover seizure or destruction of your programming errors or incorrectly instructing property under quarantine of custom's regu- the machine. But this exclusion doesn't apply lations, or confiscation by any government or to loss caused by acts of computer hackers, public authority. Nor will we cover illegal computer viruses, trojan horses, worms, logic transportation or trade. bombs or other malicious software. Nuclear activity. We won't cover loss caused Ordinances, regulations or laws. We won't cover directly or indirectly by nuclear reaction, loss caused directly or indirectly by the nuclear radiation, or radioactive contamination. enforcement of any ordinance, regulation or Such loss is excluded regardless of any other law governing: cause or event that contributes concurrently or •the use, construction, repair or demolition of in any sequence to the loss. But if loss or any property; damage by fire results, we'll pay for that result- *the prevention, control, clean up or restoration ing loss or damage, if it would otherwise be of pollution damage or covered under this agreement. •the presence of hazardous substances. Design errors or faulty materials. We won't cover This includes removal of debris. Such loss is loss caused by errors in design or faulty materi- excluded regardless of any other cause or event als. But we'll cover loss to your insured equip- that contributes concurrently or in any sequence ment, data or media by a covered cause of loss to the loss. But this exclusion won't apply to which results from errors in design or use of property destroyed by a civil authority in order faulty materials in the development, manufac- to stop the actual spread of fire. For example, ture or installation of that equipment, data or to establish a fire break. media. Strikes. We won't cover any increase in loss For example, we won't pay to replace a defec- due to delay caused by strikers or anyone else tive part supplied by the manufacturer. But at the site of your damaged business who inter- we'll pay for other damage that results from fere with your efforts to fix the damage or use of that defective part. resume your normal operations. The special breakdown deductible applies to However, we will cover an increase in business these covered losses. income loss when a strike on another person's premises prevents you from resuming business. Damage during service or repair. We won't cover loss to equipment, data or media which results 42441 Ed.11-89 Printed in U.S.A. Insuring Agreement 34L ®St.Paul Fire and Marine Insurance Co.1989 All Rights Reserved Page 5 of 9 AGNW For example: 1. How Your Property Is Valued You've ordered material to repair your The Coverage Summary indicates whether your building after it's been damaged by a fire. computers are insured on the basis of: But you cant get the material because there's a strike at the manufacturer's plant. *actual cash value; This prevents you from resuming business *replacement cost; or and increases your loss. We'll cover this *upgraded value. increase. Computer equipment insured for actual cash value. Cancellation of contracts. We won't cover any We'll pay the smallest of the following: increase in loss that's caused by the suspen- sion, lapse or cancellation of any lease, license, *the actual cash value of the damaged equip- contract or order. ment at the time of the loss; or othe limit of coverage that applies to the equip- Loss of documents. We won't cover any extra ment. expense loss or increase in business income loss caused when accounts, bills, valuable Computer equipment insured for replacement cost. abstracts, deeds, manuscripts or documents are We'll pay the cost of repairing or replacing the damaged or destroyed. However, if these damaged property without deduction for depre- items were converted to data form this exclu- ciation. sion won't apply. However, we won't pay more than the smallest Disappearance — inventory loss. We won't cover of the following: loss of property that just disappears or that you find missing when you take inventory. 1. The limit of coverage that applies to the computer. Rules For Loss Adjustment 2. The amount you actually spend in repairing the damage, or the amount it would cost to replace the damaged property at the time of the loss with new property of equal performance, Computer, Data and Media capacity or function. When a loss occurs, we'll consider the follow- 3. If replacement with new property of equal ing factors in determining what we'll pay: performance, capacity or function is not possi- ble, its replacement by property having the 1. How Your Computers, Data and Media are nearest higher performance, capacity or func- Valued. tion to the property lost, destroyed or damaged. 2. Deductible. 3. Other Insurance. Computer equipment insured for upgraded value. We'll pay the cost of replacing destroyed equip- We may take over any of the damaged or ment with equipment of greater processing destroyed property at its agreed or appraised ability. However, the new equipment must be value. Or we can choose to repair, rebuild or able to perform the same function as the replace the property ourselves provided we destroyed equipment. give you notice within 30 days after we get your proof of loss. But you agree that you For upgraded value to apply, the following won't merely abandon this property to us. requirements must be met: 1. Before a loss occurs, you must give us a list of equipment which includes: Page 6 of 9 ®St.Paul Fire and Marine Insurance Co.1989 All Rights Reserved Asald *the description and current replacement cost What We'll Pay For Extra Expense Losses of the item you now own that you plan to We'll pay your necessary extra expenses up to upgrade; and *the description and current cost of the the limit of coverage that applies. However, upgraded item. we won't pay more than the actual extra expense you incur. 2. There must be a total loss of the current item. If a partial loss occurs to an item We'II pay for these necessary extra expenses covered for upgraded value, we'll pay as if the from the date of the damage for as long as it item were insured for replacement cost. should reasonably take to repair or replace damaged computer equipment, data, media or We won't pay more than the smallest of the the building housing your computer operations following: or other property in the building. *the amount you actually spend to replace the If you get property to use temporarily until you current item. resume your normal operations, we'll subtract *the amount you showed as the current cost of its remaining value when we figure the total the upgraded item on the last list you gave us; amount of your loss. or *the limit of coverage that applies to the equip- You agree to resume your normal operations as ment. soon as possible. We'll pay for a loss on a replacement cost basis until the upgraded item is actually purchased. What We'll Pay For Business Income Losses When you buy the upgraded item we'll pay you the difference between the replacement cost What we'll pay for a covered loss depends on and the upgraded value. the business income deductible, the limit shown on the Coverage Summary for Business Income loss and whether your computer operations are What We'll Pay For Data And Media Losses totally or partially suspended. Data. We'll pay the actual cost of reproducing We'll deduct the amount of the Business Income the data, up to the limit of coverage that deductible from our payment. If your deduct- applies, provided you actually replace or ible is a length of time, we'll consider your reproduce it. This includes the additional business interruption loss to begin after the expense to reproduce data under adverse length of time in business days or hours has circumstances if it's necessary to continue your elapsed. normal computer operations. But we won't cover data which can't be replaced due to the Total suspension. If the property damage causes lack of backup support documentation, source a complete suspension of your computer oper- code or records. Data may be scheduled in the ations, we'll pay a fixed amount for each Coverage Summary for a specific value per 24-hour day when you would have normally item. If so, we'll pay up to that amount for conducted business. This is the amount shown each item. on the Coverage Summary for each working day. We'll cover your loss for as long as it Normal computer operations means the should reasonably take to repair or replace the operations that would have existed if no damaged property, but we won't pay more than damage had occurred. the total limit shown on the Coverage Summary. Media. We'll pay the actual cost of either However, when it's possible for you to resume repairing or replacing the media with material some operations and the suspension becomes of similar kind and quality, up to the limit of only partial, we'll pay the remaining interruption coverage that applies. as explained in the next section. 42441 Ed.11-89 Printed in U.S.A. Insuring Agreement 34L ®St.Paul Fire and Marine Insurance Co.1989 All Rights Reserved Page 7 of 9 Asaut Partial suspension. If the property damage deductible amount applies to losses which causes a partial suspension of your computer result from mechanical or electrical break- operation, we'll pay up to a percentage of your downs as explained in the Breakdown Coverage limit for each working day at the covered section. It also applies to losses resulting location. This percentage will be equal to the from errors in design, use of faulty materials or value of your lost income divided by your coverage under the Damage during service or normal income. By normal income we mean repair exclusion. This deductible doesn't apply what your income would have been had no loss to losses caused by fire, lightning or explosion. occurred. For example: Special business income deductible. We also show a special deductible for business income cover- Fire damage at a covered location causes age. This deductible applies to losses which you to suspend some Of your operations. result from an interruption of business, and Because of the suspension you lose $50,000 may be either a dollar amount or a time limit. in income. Normally, for the same period The time limit is shown in business days or your income would have been $300,000. hours. Your limit for each working day is $6,000. Business day means a day, ending at lost income working what we'll midnight, that you are normally open for busi- X day = pay per ness. normal income limit working day The first business day or hour begins at the $50,000 time of loss. The day ends at midnight. However, if the loss occurs after the business $300,000 = 116 x $6,000 = $1,000 has closed for the day, we'll consider the first day or hour to be the next day or hour on which We'll cover your loss for as long as it should you would normally be open for business. reasonably take to repair or replace the damaged property. However, we won't pay more than the limit of coverage that applies. 3. Other Insurance Reducing your loss. If you can reduce your busi- Other insurance may be available to cover your ness income loss by resuming operations at the loss. If so, what we'll pay depends on the type affected location or by making use of other of other insurance and the property covered. In property at other locations, you must do so. any case, we'll subtract the amount of the deductible from our payment and we won't pay We'll pay any expenses you have that are more than the limit of coverage that applies. necessary to reduce your loss (except expenses This is how it works. for putting out afire). But we won't pay those expenses that exceed the amount by which they reduce the loss. Other Computer Insurance If other computer insurance covers a loss to 2. Deductibles equipment, data or media and the loss is also covered under this agreement, this agreement is Your deductible is shown in the Coverage excess insurance. This means we'll only pay Summary. You'II first pay up to this amount after the other data processing insurance is for all losses caused by any one event covered used up. But if the other insurance also pays under this agreement except for Breakdown only as excess, we'll share the loss with them. Coverage or Business Income. We'll pay anything over this amount up to the applicable limits of your coverage. Other Property Insurance Special breakdown deductible. A special deduct- If insurance other than data processing insur- ible is shown for breakdown coverages. This ance cover a loss to equipment, data or media Page 8 of 9 ©St.Paul Fire and Marine Insurance Co.1989 All Rights Reserved EsmW and the loss is also covered under this agree- claim you make for the same loss. We'll also ment, this agreement is primary insurance. defend, at our cost, any legal proceedings This means we'll pay your covered loss up to brought against you as a result. the limit of coverage that applies. Any loss over that limit will be the responsibility of the other insurance. Who We'll Pay For Loss To Equipment If the Coverage Summary identifies a person or Other Extra Expense Or Business Income Insurance organization to receive payments for loss to equipment, we'll adjust the loss with you. If any other insurance covers an extra expense However, payment will be made to you and the or business income loss that's covered under person or organization named, based on the this agreement, this agreement is excess insur- financial interest each has in the covered prop- ance. This means we'll only pay after the other erty. insurance is used up. If the other insurance also pays only as excess, we'll share the loss with the other company. Preserving Your Rights You must do all you can to preserve any rights you have to recover your loss from others. If Other Rules For This Agreement you do anything to impair these rights, we won't pay for your loss. However, before a loss occurs, you can give others a written release from any responsibility for losses to Insurance For Your Benefit property. You can also accept ordinary bills of lading from a shipper, even if they limit the This insurance is for your benefit. No third carrier's liability for losses. party having temporary possession of your property, such as a transportation company, can benefit directly or indirectly from it. Expenses For Reducing Loss When a covered loss occurs, you must do Adjusting Losses everything possible to protect the property from further damage, Keep a record of your If there's a covered loss to your property, we'll expenses. We'll pay our share of reasonable adjust the loss with you. If there's a covered and necessary expenses incurred to reduce the loss to someone else's property, we may adjust loss or protect the covered property from the loss with you for the owner's account. Or further damage. Welt figure our share and your we can choose to settle directly with the owner. share of these expenses in the same proportion If we do, the owner's release will satisfy any as each of us will benefit from them. 42441 Ed.11-89 Printed in U.S.A. Insuring Agreement 34L ®St.Paul Fire and Marine Insurance Co.1989 All Rights Reserved Page 9 of 9 COMPUTER VIRUS ENDORSEMENT immul This endorsement changes your Property Protection. How Coverage Is Changed duced by a computer virus or other malicious act. The following is added to the Exclusions -What This Agreement Won't Cover section. This However, if a computer virus limit is shown in change restricts coverage. the Coverage Summary, we'll provide this coverage. Computer virus. We won't cover any loss of earnings or business income caused by the execution of any program or instruction intro- Other Terms All other terms of your policy remain the same. 42443 Ed.11-89 Printed in U.S.A. Endorsement ®St.Paul Fire and Marine Insurance Co.1989 Page 1 of 1 Aland Breakdown Coverages Deductible What this endorsement does: This endorsement amends your breakdown coverages deductible to read: "Your standard Breakdown Coverages deductible is one percent of the total limits of all four basic coverages per location, but not less than $ 5,000.00 Other terms: All other terms of your policy remain the same. Name of Insured Policy Number IM08400257 Effective Date 08/01/91 CITY OF KENT Processing Date 08/26/91 16:40 001 40502 Ed.1-80 Printed in U.S.A. Customized Form ©St.Paul Fire and Marine Insurance Co.1980 Page 1