HomeMy WebLinkAboutCAG2020-089 - Amendment - #1 - Integra Washington, Inc. - Clark Spring Habitat Conservation Measures - Valuation Services - 04/03/2020KENT
Agreement Routing Form
For Approvals, Signatures and Records Management
This form combines & replaces the Request for Mayor's Signature and Contract Cover Sheet forms.
(Print on pink or cherry colored paper)WaSHtNGToN
E
oLo.o.
Originator:
Nancy Yoshitake for Dee Martindale
Department:
Public Works
Date Sent:
4t6t20
Date Required
4t9t2o'
Authorized to Sign:
E Director or Designee E Mayor
Date of Council Approval
N/A
Budget Account Number:
l^20005
Budget? EYes tr No
Grant? EYes @ No
Type:
c
.9Po
ELora-
E
iHco
EooLol
Vendor Name:
lntegra Washington, I nc
Category:
Contract
Vendor Number:
252470
Sub-Category:
Amendment 1
Project Name: Clark Springs Habitat Conservation Measures
Projecr Details:Revises the scope of work to include assurances that the appraisals would
be litigation ready.
Agreement Amount: $0
Start Date: 413120
Basis for Selection of Contractor:
Terminarion Date: 411121
Local Business? EYes E No*
*lf meets requirements per KCC 3.70.100, please complete "Vendor Purchase-Local Exceptions" form on Otyspace.
Notice required prior to disclosure?
EYes ENo
Contract Number:
c-K;?n19 - 08q
C'ltr
]P
J\olc
.g tt
o=Ei
IE
C
.9
UI
Date Received by City Attorney:
I
Comments
Date Routed to the Mayor's Office:
Date Routed to the City Clerk's Office:
ad(W221ll_l_20 Visit Documents.KentwA.gov to obtain copies of all agreements
KENT
WasHtNGaoN
AMENDMENT NO. 1
NAME OF CONSULTANT OR VENDOR:Inteqra Washinoton, Inc.
CONTRACT NAME & PROJECT NUMBER Clark Sp!'inqs Habitat Conservation Measures
ORIGINAL AGREEMENT DATE :March 1O,2O2O
This Amendment is made between the City and the above-referenced Consultant or
Vendor and amends the original Agreement and all prior Amendments. All other provisions of
the original Agreement or prior Amendments not inconsistent with this Amendment shall remain
in full force and effect. For valuable consideration and by mutual consent of the parties,
Consultant or Vendor's work is modified as follows:
1. Section I of the Agreement, entitled 'tDescription of Work," is hereby modified to
add additional work or revise existing work as follows:
In addition to work required under the original Agreement and any
prior Amendments, the Consultant or Vendor shall:
Amendment No. 1 revises the scope of work to include
assurances that the appraisals would be litigation ready and is
attached as Exhihit A and incorporated hy this reference. No
change to the total maximum amount.
2. The contract amount and time for performance provisions of Section II "Time of
Completion," and Section III, "Compensation," are modified as follows:
Original Contract Sum,
including applicable WSST
$16,ooo
Net Change by Previous Amendments
including applicable WSST
$o
Current Contract Amount
includiig all previous amendments
$16,000
Current Amendment Sum $o
Applicable WSST Tax on this
Amendment
$o
Revised Contract Sum $16,000
AMENDMENT-IOF2
Ori|inal Tirne for Completion
(insert date)
3nt2l
Revised Time for Completion under
prior Amendments
(insert date)
nla
Add'l Days Required (+) for this
Arnendment
31 calendar days
Revised Time for Completion
(insert date)
4tLt2t
The Consultant or Vendor accepts all requirements of this Amendment by signing below,
by its signature waives any protest or claim it may have regarding this Amendment, and
acknowledges and accepts that this Amendment constitutes full payment and final settlement of
all claims of any kind or nature arising from or connected with any work elther covered or
affected by this Amendment, including, without limitation, claims related to contract time,
contract acceleration, onsite or home office overhead, or lost profits. This Amendment, unless
otherwise provided, does not relieve the Consultant or Vendor from strict compliance with the
guarantee and warranty provisions of the original Agreement.
All acts consistent with the authority of the Agreement, previous Amendments (if any),
and this Amendment, prior to the effective date of this Amendment, are hereby ratified and
affirmed, and the terms of the Agreement, previous Arnendments (lf any), and thls Amendment
shall be deemed to have applied.
The parties whose narnes appear below swear under penalty of perjury that they are
authorized to enter into this Amendment, which is binding on the parties of thls contract,
IN WITNESS, the parties below have executed this Amendment, whlch will
become effective on the last date written below.
Inieqru - Cl!.k Spdngs 3 Amd !lM!.tl[d6l€
t me L t
DATE Al
CITY OF KENT:
By
Print Name: Timothv J, LaPorte. P.E.
DATE -?-o
ATTEST:
City Clerk
APPROVED AS TO FORM:
(applicable lf Mayor's signature required)
Kent Law Department
AMENDMENT-2AF2
EXHIBIT A
lntegra Realty Resources 600 Univers;ty 5treet
suite 310
Seanlg WA 981O1
T 206.903.670C
F 246.621.57.1
March 19,2020
Dee Martindale
Project Analyst
And
Cheryl Rolcik-Wilcox
Property & Acquisition Analyst
City of Kent
400 West Gowe
Kent, Washington 98032
SUBJECT:Proposal for Valuation Services
Project No. 13-3007
SE 269th Street, Ravensdale, King Countv, WA 98051
Dear Ms. Martindale and Ms. Rolcik-Wilcox
lntegra Realty Resources - Seattle appreciates the opportunitv to provide this proposal for
valuation services to the undersigned (the "Client") for the subject properties, identified in
the table below.
PmFd lntotm*l6n
(i.g Colnty Sitesi?e
Prcjed Number Prrcel No. tuner Addre$ {Ac.s} Suildht lnfo App.aisal Fee
13'367/Pw2019-o1o 2522a6.97O4 Mdlderry 2s10 st 25$h street 1.08 1974 sFR 54,000
f-3m/PW2019-011 252269ffi4 Hewks 2m20S€269bstr*t 1,36 MobileHome&shop/ltoEreshed S4,0m
1l-3m7/Pw2019.012 252206-9106 Hanson 26U0 SE 26*h Sr.et 1.23 1954 sFl S4,m
13-3ffi/PW2019-014 2522069110 Cwe lB05 262nd Aw^u€ 5t 1.07 Mobile Home t4,0m
Total Fee 516,0tr
The purpose of the appraisal is to provide an opinion of the market value of the fee simple
interest in the Subject Properties. The intended use of the appraisal is for property
acquisitionpurposes. Theappraisal will bepreparedinconformancewithandsubjectto,
the Code of Professional Ethics and Standards of Professional Appraisal Practice ofthe
Appraisal lnstitute and the Uniform Stondards of Professional Appraisal Proctice (USPAP)
developed by the Appraisal Standards Board of the Appraisal Foundation.
City of Kent
March 19,2020
Page 2
The Ethics Rule of USPAP requires us to disclose to you any prior services we have
performed regarding the Subject Property within a three-year period immediately preceding
the acceptance of this assignment, either as an appraiser or in any other capacity. We have
performed no services, as an appraiser or in any other capacity, regarding the property that
is the subject of this report within the three-year period immediately preceding the
agreement to perform this assignment.
ln accordance with our correspondence, the scope of this assignment will require IRR -
Seattle to consider all relevant and applicable approaches to value as determined during the
course of our research, subject property analysis and preparation of the report.
The appraisalwill be communicated in an Self-Contained / Comprehensive Format, suitable
for litigation. The total fee for this assignment will be 516,000 inclusive of expenses, for all
four appraisal repo.ts. The report(s) will be completed and delivered to you within 45 days
from each property inspection.
An electronic copy of the report(s) (PDF format) will be provided, along with one hard copy
if requested. Additional hard copies ofthe report(s) are available at an additional cost of
$100 per copy.
Additional fees will be charged on an hourly basis for any work which exceeds the scope of
this proposal, including performing additional valuation scenarios, additional research and
conference calls or meetings with any party which exceed the time allotted for an
assignment of this nature.
Rates
Rate
Executive Director
5enior Managing Director/Managing Director
Senior Analyst
Analyst
Researcher
Production Support
The appraisal report(s) will be limited by our standard Assumptions and Limiting Conditions
and any extraordinary assumptions and limiting conditions, which become apparent or
necessary during the course ofthe assignment. A copy ofthe standard Assumptions and
Limiting Conditions is set forth in Attachment l.
ln the event the Client provides a copy of this appraisal to, or permits reliance thereon by,
any person or entity not authorized by lntegra - Seattle, the Client agrees to indemnify and
hold harmless lntegra - Seattle, its affiliates and its shareholders, directors, officers and
employees, from and against all damages, expenses. claims and costs, including attorneys'
fees, incurred in investigating and defending any claim arising from or in any way connected
to the use of, or reliance upon, the review appraisal by any such unauthorized person or
entity.
S325/hour
S200 to $250
S150/hour
590/hour
560/hour
City of Kent
March 19,2020
Page 3
Thank you for considering us for this assignment and we look forward to working with you
Please call if you wish io discuss this proposal or the assignment any further.
Sincerely.
INTIGRA REAtfi RESOURCES -SEATILE
/ ,-.,Y :v i-",/U/?" ' ('- -J!.r1?
Lori Safer, MAl, AI-GRS "
Managing Director
Attachments
City of Kent
March 19,2020
Page 4
ATTACHMENT I
STANDARD AssuMpTtoNs & LtMtTtNG CoNDtnoNs
The appraisal report and any work producl related to the engagement will be limited by the following
standard assumptions:
1. The title is marketable and free and clear of all liens, encumbrances, encroachments, easements
and restrictions. The Subject Property is under responsible ownership and competent
management and is available for its highest and best use.
2. Therearenoexistingjudgmentsorpendingorthreatenedlitigationthatcouldaffectthevalueof
the Subject Property.
3. There are no hidden or undisclosed conditions of the land or of the improvements that would
render the Subject Property more or less valuable. Furthermore, there is no asbestos in the
Subject Property.
4. The revenue stamps placed on any deed referenced herein to indicate the sale price are in correct
relation to the actual dollar amount of the transaction.
5. The Subject Property is in compliance with all applicable building, environmental, zoning, and
other federal, state and local laws, regulations and codes.
6, The information furnished by others is believed to be reliable, but no warranty is given for its
accuracy.
The appraisal report and any work product related to the engagement will be subject to the following
limiting conditions, except as otherwise noted in the reporh
1. An appraisal is inherently subjective and represents our opinion as to the value of the Subject
Property appraised.
2. Theconclusionsstatedinourappraisal applyonlyasoftheeffectivedateoftheappraisal,andno
representation is made as to the effect of subsequent events.
3. No changes in any federal, state or local laws, regulations or codes {including, without limitation,
the lnternal Revenue Code) are anticipated.
4. No environmental impact studies were either requested or made in conjunction with this
appraisal, and we reserve the right to revise or rescind any of the value opinions based upon any
subsequent environmental impact studies. lf any environmental impact statement is required by
law, the appraisal assumes that such statement will be favorable and will be approved by the
appropriate regulatory bodies.
5. Unless othenarise agreed to in writing, we are not required to give testimony, respond to any
subpoena or attend any court, governmental or other hearing with reference to the Subject
Property without compensation relative to such additional employment.
6. We have made no survey of the Subject Property and assume no responsibility in connection with
such matters. Any sketch or survey of the Subject Property included in this report is for illustrative
purposes only and should not be considered to be scaled accurately for size. The appraisal covers
City of Kent
March 19,2020
Page 5
the Subject Properry as described in this report, and the areas and dimensions set forth are
assumed to be correct.
7. No opinion is expressed as to the value of subsu rface oil, gas or mineral rights. if any, and we have
assumed that the Subject Property is not subject to surface entry for the exploration or removal of
such materials, unless otherwise noted in our appraisal.
8. We accept no responsibility for consideralions requiring expertise in other fields, Such
considerations include, but are not limited to, legal descriptions and other legal matters such as
legal title, geologic considerations, such as soils and seismic stability, and civil, mechanical,
electrical, structural and other engineering and environmental matters. Such considerations may
also include determinations of compliance with zoning and other federal, state, and local laws,
regulations and codes.
9. The digtribution of thetotal valuation in the reporl between land and improvements applies only
under the reported highest and best use ofthe Subiect Property. The allocations of value for land
and improvements must not be used in conjunction with any other appraisal and are invalid if so
used. Theappraisal reportshall beconsideredonlyinitsentirety. Nopartoftheappraisal report
shall be utilized separately or out of context.
10, Neither all nor any part of the contents of this report (especially any conclusions as to value, the
identity of the appraisers, or any reference to the Appraisal lnstitute) shall be disseminated
through advertising media, public relations media, news media or any other means of
communication {including without limitation prospectuses, private offering memoranda and other
offering material provided to prospective investors) without the prior written €onsent of the
persons signing the report,
11. lnformation, estimates and opinions contained in the report and obtained from third-party
sources are assumed to be reliable and have not been independently verified.
12. Any income and expense estimates contained in the appraisal report are used only for the
purpose of estimating value and do not constitute predictions of future operating results.
13. lf the Su bject Pro perty is su bject to one or more leases, any estimate of residual va lue conta ined
in the appraisal may be particularly affected by significant chan8er in the condition of the
economy, ofthe real estate industry, orofthe Subject Property atthe timethese leases expire or
otherwise terminate.
14. Unless otherwise stated in the report, no consideration has been given to personal property
located on the Subject Property or to the cost of movinB or relocating such personal property;
only the real property has been considered.
15. The current purchasing power of the doflar is the basis for the value stated in the appraisal; we
have assumed that no extreme fluctuations in economic cycles will occur.
16. The values found herein are subject to these and to any other assumptions or conditions set forth
in the body of this report but which may have been omitted from this list of Assumptions and
Limiting Conditions.
17. The analyses conlained in the report necessarily incorporate numerous estimates and
assumptions regarding propertv performance, general and local business and economic
City of Kent
March 19,2020
Page 6
conditions, the absence of material changes in the competitive environment and other matters.
Some estimates or assumptions, however, inevitably will not materialize, and unanticipated
events and circumstances may occur; therefore, actual results achieved during the period covered
by our analysis will vary from our estimates, and the variations may be material.
18. The Americans with Disabilities Act {ADA} became effective January 26, Lgg2. We have not made a
specific survey or analysis of the Subject Property to determine whether the physical aspects of
the improvements meet the ADA accessibility guidelines. We claim no expertise in ADA issues,
and render no opinion regarding compliance of the Subject Property with ADA regulations.
lnasmuch as compliance matches each owner's financial ability with the cost to cure the non-
conforming physical characteristics of a property, a specific study of both the owne/s financial
ability and the cost to cure any deficiencies would be needed for the Department of justice to
determine compliance.
19. The appraisal report is prepared {or the exclusive benefit of you, your subsidiaries and/or
affiliates. lt may not be used or relied upon by any other party. All parties who use or rely upon
any information in the report without our written consent do so at their own risk.
20. No studies have been provided to us indicating the presence or absence of hazardous materials on
the Subject Property or in the improvements, and our valuation is predicated upon the
assumption that the Subject Property is free and clear of any environment hazards including,
without limitation, hazardous wastes, toxic substances and mold. No representations or
warrantiesaremaderegardingtheenvironmental conditionoftheSubjectProperty. IRR-Seattle
and/or any of its officers, owners, managers, directors, agents, subcontractors or employees {the
"lntegra Parties") shall not be responsible for any such environmental conditions that do exist or
for any engineering or testing that might be required to discover whether such conditions exist.
Because we are not experts in the field of environmental conditions, the appraisal report cannot
be considered as an environmental assessment of the Subject property.
21. The persons signing the report may have reviewed available flood maps and may have noted in
the appraisal report whether the Subject Property is located in an identified Special Flood Hazard
Area. However, we are not qualified to detect such areas and therefore do not guarantee such
determinations. The presence of flood plain areas and/or wetlands may affect the value of the
Subject Property, and the value conclusion is predicated on the assumption that wetlands are
non-existent or minimal.
22. We are not a building or environmental inspector. The lntegra Parties do not guarantee that the
Subject Property is free of defects or environmental problems. Mold may be present in the
Subject Property and a professional inspection is recommended.
23. The appraisal report and value conclusions for an appraisal assumes the satisfactory completion of
construction, repairs or alterations in a workmanlike manner.
24. IRR - Seattle is an independently owned and operated company. The parties hereto agree that
lntegra Realty Resources, lnc. ("lntegra") shall not be liable for any claim arising out of or
relating to any appraisal report or any information or opinions contained therein as such
appraisal report is the sole and excluslve responsibility of IRR - Seattle. ln addition, it is
expressly agreed that in any action which may be brought against the lntegra Parties arising out
of, relating to, or in any way pertaining to the engagement letter, the appraisal reports or any
City of Kent
March 19, 2020
Page 7
related work product, the lntegra Parties shall not be responsible or liable for any incidental or
con3equential damages or losses, unless the appraisal was fraudulent or prepared with
intentional misconduct. lt is further expressly agreed that the collective liability of the lntegra
Parties in any such action shall not exceed the fees paid for the preparation of the assignment
(unless the appraisal was lraudulent or prepared with intentional misconduct). lt is expressly
atreed that the lees charged herein are in reliance upon the foregoing limitations of liability,
25. IRR - Seattle is an independently owned and operated company, which has prepared the appraisal
for the specific intended use stated elsewhere in the report. The use of the appraisal report by
anyone other than the Client is prohibited except as otherwise provided. Accordingly, the
appraisal report is addressed to and shall be solely for the Client's u5e and benefit unless we
provide our prior wtitten consent. We expressly reserve the unrestricted right to withhold our
consent to your disclosure of the appraisal report or any other work product related to the
engagement {or any part thereof including, without limitation, conclusions of value and our
identity), to any third parties. Stated again for clarification. unless our prior written consent is
obtained, no third party may rely on the appraisal report (even iftheir reliance was foreseeable).
26. The conclusions of this report are estimates based on known current trends and reasonably
foreseeable future occurrences. These estimates are based partly on property information, data
obtained in public records, interviews, existing trends, buyer-seller decision criteria in the current
market, and research conducted by third parties, and such data are not always completely
reliable. lntegra Realty Resources lnc. are not responsible for these and other future occurrences
lhat could not have reasonably been foreseen on the effective date of this assignment.
Furthermore, it is inevitable that some assumptions will not materialize and that unanticipated
events may occurthat will likely affect actual performance. While we are of the opinion that our
findings are reasonable based on current market conditions, we do not represent that these
estimates will actually be achieved, as they are subject to considerable risk and uncertainty.
Moreover, we assume competent and effective management and marketing for the duration of
the projected holding period ofthe Subject Property.
27. All prospective value opinions presented in this report are estimates and forecasts which are
prospective in nature and are subject to considerable risk and uncertainty. ln addition to the
contingencies noted in the precedin6 paragraph, several Fvents may nrfl.rr that cnuld substantially
alter the outcome of our estimates such as, but not limited to changes in the economy, interest
rates, capitalization rates, behavior of consumers, investors and lenders, fire and other physical
destruction, changes in title or conveyances of easements and deed restrictions, etc. lt is assumed
that conditions reasonably foreseeable at the present time are consisient or similar with the
future.
As will be determined during the course of the assignment, additional extraordinary or hypothetical
conditions may be required in orderto complete the assignment. The appraisal shall also be subject
to those assumptions.
i#o.
HOL
CERTIFICATE OF LIABILITY INSURANCE
NUMBER: 20-21 REVISION
@ 1988-2015 ACORD CORPORAT|ON. All rlghts reserved.
The ACORD name and logo ars tegistsred marks of ACORD
DA'E (MM/DDIYYYY}
0211912A2A
THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS
CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELYAMENO, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES
aELOW IHIS CERTIFICATE OF INSURANCE DOES NOT CONSTTTUTE A CONTRACT BETWEEN THE tSSUtNG TNSURER(S), AUTHORTZED
REPRESENTATIVE OR PROOUCER, AND THE CERTIFICATE HOLDER.
lMPoRTAllT:lfthec€rllfloaleholderisanAoDlTloNALlNsURED,thep
lf SUBROGATION lS WAIVED, subject to the torms and conditions ot the pollcy, certaln policios may requtre an endorsement. A statement on
this certiflcate does not confer rlghtg to tho certlficate holder ln lleu of such ondorsemenl(al.
PROOUCER
Conovef lnsurance
155 1081h Avenue NE, Suite 725
P.O. Box 90007
Bellevue wA 98004
Carrie Ovrid
455-5000 454-5550
com
INgUREN(S} AFFORDING COVERAGE ItAlc t
In$uRERA: Muhral of Enumclaw lnsurance Company 14761
INSURED
INTEGRAWASHINGTON INC
600 UNIVERSITY ST
STE 310
SEATTLE wA 98101
INSURER B :
INSURER C
INSURER O :
INSURER E i
INSIJRER F :
THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE L'STEO BELOW HAVE BEEN ISSUEO TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD
INDICATED. NOTWITHSTANDING ANY REQUIREMENT. TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMEN' WITH RESPECT TO WHICH THIS
CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THF INSURANCE AFFORD€D BY THE POLICIES DESCRIBEO HEREIN IS SUEJECT TO ALLIHE TERMS,
EXCLUSIONS AND CONDITIONS OF SUCH POLICIES, LIfuIITS SHOWN MAY I-IAVE BEEN REDUCEO BY PAID CLAIMS.
ITR TYPE OF INSURANCE tNSn POLICY NUMBER iMM/DDIYYYY}IMM/DO'YYYYI LIMITS
COMMERCIAL GEIIERAL LIABI LITY
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GENERAL AGGREGAIE 5 4,000,000
PRODI'C IS - cOMP/OP AG':$ 2,000,000
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DESCRIPTION OF OPERATIONS I LOCAfJONSIVEHICLES {ACORDl0l,AddillonalRef,arkBSch€dll€,mayboattach€dltmorospacetsrequlred}
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SHOULD ANY OF THE AEOVE DESCRIBEO POLICIES BE CANCELLED BEFORE
THE EXPIRATION DATE IHEREOF, NOTICE WILL BE DELIVERED IN
ACCORD,ANCE WITH THE POLICY PROVISIONS.
WA 98032Kont
City of Kent
220 Fourth Avenuo South
/^*;C C,^a
AUTHORIZEO REPRESENTATIVE
ACORD 25 (20161031
COVERAGES c
CERTIFICATE OF LIABILITY INSURANCE
TE NU
O 1988"2015 ACORD CORPORATION. All rtghts reserved
The ACORD name and logo are reglstered marks of ACORD
oATE (t M/DO/YYYY)
2t2812020
THIS CERTIFICATE IS ISSUEO AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS
CERT]FICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED 8Y THE POLICIES
BELOW. TH|S CERTIFTCATE OF TNSURANCE DOES NOT CONSTTTUTE A CONTRACT BETWEEN THE |SSU|NG TNSURER(S), AUTHORIZEo
REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER,
IMPORTANT: lt the certlllcate holder is an ADDITIONAL INSURED, the policy(ies) must have ADDITIONAL INSURED provisions or be endorsed.
lf SUBROGATION lS WAIVED, subject to the terms and conditions of the policy, certain policies may roquire an endorsement. A statement on
this certificate does not confer riqhts to the certlficate holder ln li€u of such ondorsemenl{s).
PRODUCER
Arthur J. Gallagher & Co.
lnsurance Brokers ol CA. lnc LIC#0726293
505 N. Brand Boulevard, Suite 600
Glendale CA 91203
81 8-539-1 804
INSURERIS) AFFORDING COVERAGE NAIC f
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IN9URED INTEREA{3
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600 University Street
Seattle, WA 98101
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INSI.JRFR B :
INSURER C
INSURER D ;
INSURER E :
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THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED SELOW HAVE BEEN ISSUED TO
'HE
{NSUREO NAMED ASOVE FOR THE POLICY PERIOD
INDICATED. NOTWITHSTANDING ANY REOUIREMENT, 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 SUEJECT TO ALL THE IERMS,
EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PA'D CLAIMS.
TYPE OF INSURANCE POLICY NUMSER
POLICY EXP Lll,lTS
EACH OCCURRENCE $
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E,L. DIS€ASF. EA EMPLOYEE
WORKERS COMPENSATION
ANO EMPLOYERS' LIAEILITY
ANYPROPRIEf ORYPARINEFVEXECUIIVE
OFFICERA,IEMBER EXCLUDED?
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DESCRIPTION OF OPFRATION.q hebw
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E.L. DISEASE - POLICY LIMIT
Erorr & Omisslons
Enors & Omls8lss
'E&O OEductiblo R6imbu,sBmsnl
MPL1531 199.20
MPLI 542399.20
PRFDR 46-APP20G30692-201
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$2,000,000
$10,000,000
$1 50,000
DESCRIPiIONOFOPERATIONS,LOcATIONSIVEHIGLES (ACORDl0l,AddltionalRemarksschodulo,maybeattachodilmorerpaceirrequired)
Locatlon: 600 Universlty Street, St6 310, Seattle, WA 98101
Evldsnce only.
'Pollcy ls eublect to $25,000 Self lnsured RontentionlDoductible Davable bv local office.
Thls cedlncatg of lnsuranco is not a policy of lnsuranco and does n6t afiimfatively or ne0alively am6nd.
Bxl€nd or aller the covorage alfo.ded by the policy to wtrlch the cerlilicgte of insui'ance itakes'reference.
SHOULD ANY OF THE ABOVE OESCRIBEO POLICIES BE CANCELLED BEFORETHE EXPIRATION OATE THEREOF, NOTICE WILL BE OELIVEREO IN
ACCORDANCE WITH THE POLICY PROVISIONS.City of Kent
220 Fourth Avenue
Kent WA 98032
USA
AUTHORIZEO REPRESENIATIVE&o*M *
ACORD 25 (2016/03)
""?["T3y]"T;
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
PRIMARY AND NONGONTRIBUTORY -OTHER INSURANCE CONDITION
This endorsement modifies insurance provided under the following:
BUSINESSOWNERS COVERAGE FORM
The following is added to Paragraph H. Other
lnsurance of Section lll Common Policy
Condilions and supersedes any provision to the
contrary:
Primary And Noncontributory lnsurance
This insurance is primary to and will not seek
contribution from any other insurance available to
an additional insured under your poiicy provided
that:
1. The additional insured is a Named lnsured
under such other insurance: and
2. You have agreed in writing in a contraci or
agreement thai this insurance would be
prinrary and would not seek contribuiion from
any other insurance available to the additional
insured.
BP 14 88 07 13 @ lnsurance Services Office, lnc.,2O12 Page 1 of 1
BUSINESSOWNERS
EB 99 01 t2 19
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
BUSINESSOWNERS ENHANCEMENT ENDORSEMENT
This endorsement modifies insurance provided under the following:
BUSINESSOWNERS COVERAGE FORM
(The Coveragas and Limifs shown below are subject to the terms and condltlons lound in the remainder of this
Endorsement.)
Schedule
1- Covered Property
Signs attached to buildings and business personal property.2. Additional Coveragos
a. Debris Removal
b. Preservation of Propertyc. Fire Department Service Charge
d, Collapse
e. Water Damage, Other Liquids, powder Or Molten Material Damagef, Business lncomeg. Extra Expense
h. Pollutant Clean-Up And Removali. CivilAuthorityj. Money Orders And "Counterfeit Money"k. Employee Dishonestyl. Forgery OrAlteration
m. Ordinance Or Law Coverage - Blanket - Coverages 1, 2 and 3n. Business lncome From Dependent properties
o. Glass Expensesp. Fire Extinguisher Systems Recharge Expenseq. Electronic Datar. lnterruption Of Computer Operationss. Limited Coverage For "Fungi", Wet Rot Or Dry Rott. Lock And Key Replacementu. Utility Servicesv. Reward Payment
w. lnventory And Loss Adjustment Expensex. Back-Up of Sewers, Drains or Sumpsy. Money and Securitiesz. Fine Arts
aa. Voluntary Parting
3. Goverage Extenslonsa. Newly Acquired Or Constructed property
Buildings
Business Personal property
b. Personal Property Off-premises lncluding Transportationc. Outdoor Propertyd. Personal Effects And property Of Otherse. Valuable Papers and Records
f . Accounts Receivableg. Detached Signsh. Business Personal Property Temporarily ln portable storage Units4. Limits Of lnsurance5. Deductibles6. Loss Payment7. Optional Coverages8. Other lnsurance Condition9. Definitions
10. Additional Ineured - Building Owner
11. Blanket Additional lncured
Limits of lnsurance
$25,000
60 days
$15,000
Refer to Page 3
Refer to Page 4
Actual Loss Sustained
ActualLoss Sustained
$15,000
4 weeksft 2 hr. deductible
$s,000
$15,000
$1s,000
$1 00,000
$10,000
Refer to page g
$10,000
$25,000
$25,000
$1 s,000
$2,500
$10,000
$10,000
$5,000
$25,000
$1 0,000 lnside/$2,000 Outside
$10,000
$10,000
$500,000
$2s0,000
$25,000
$10,000/$1 ,000 per tree, shrub or plant
$2,500 per person/910,000 maximum
$25,000 On Premises/$S,000 Off premises
$25,000 On Premises/$s,000 Off premises
$10,000
$10,000
EB 99 01 12 19 lncludes copyrighted materiar of rnsurance services offie, rnc. with its permission Page I of 20
The proximity limitation found anywhere within the Businessowners Policy is amended from "within
100 feet" of the described premises, to "within 1,000 feet" of the described premises.
1. The following is added to Paragraph A.{. - Covered
Property in Section I - Property of the
Businessowners Coverage Form.
a. Buildings
(7)Signs attached to buildings"
b. Business PersonalProperty
{6)Signs attached to buildings.
2. Paragraph 5. Additional Goverages in Section I -
Property is deleted in its entirety and replaced by
the following:
a. Debris Removal
(l) Subject to Paragraphs (2), (3) and (4), we
will pay your expense to remove debris of
Covered Property and other debris that is
on the described premises, when such
debris is caused by or results from a
Covered Cause of Loss that occurs during
the policy period. The expenses will be paid
only if they are reported to us in writing
within 180 days of the date of direct
physical loss or damage.
(2) Debris Removal does not apply to costs to:
(a) Remove debris of property of yours
that is not insured under this policy, or
property in your possession that is not
Covered Property;
(b) Remove debris of property owned by or
leased to the landlord of the building
where your described premises are
located, unless you have a contractual
responslbility to insure such property
and it is insured under this policy;
{c) Remove any property that is PropertyNot Covered, including property
addressed under the Outdoor Property
Coverage Extension;
(d) Remove property of others of a type
that would not be Covered ProPertY
under this policy;
(e) Remove deposits of mud or earth from
the grounds of the described ptemises;
(f) Extract "pollutants" from land or water;
or
(g) Remove, restore or replace polluted
land or water.
(3) Subject to the exceptions in Paragraph (4),
the following provisions apply:
(a) The most that we will pay for the total
of direct physical loss or damage plus
debris removal expense is the Limit of
lnsurance applicable to the Covered
Property that has sustained loss or
damage.
(b) Subject to Paragraph (3)(a) above, the
amcunt we will pay for debris rernoval
expense is limited lo 25o/o of the sum of
the deductible plus the amount that we
pay for direct physical loss or damageto the Covered Property that has
sustained loss or damage. However, if
no Covered Property has sustained
direct physical loss or damage, the
most we will pay for removal of debris
of other property (if such removal is
covered under this Additional
Coverage) is $5,000 at each localion.
(4) We will pay up to an additional $25,000,
unless a higher limit of insurance is shown
in the Declarations, 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 lnsurance on the
Covered Property that has sustained
loss or damage.
(b) The actual debris removal expense
exceeds 25o/o of the sum of the
deductible plus the amount that we pay
for direct physical loss or damage tothe Covered Property that has
sustained loss or damage.
Therefore, if Paragraphs (4Xa) andior
(4)(b) apply, our total payment for direct
physical loss or damage and debris
removal expense may reach but will never
exceed the Limit of lnsurance on the
Covered Property that has sustiained loss
or damage, plus $25,000.
b. Preservation of Property
lf 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) tA/hile it is being moved or while temporarily
stored at another location; and
(2) Only if the loss or damage occurs within 60
days afier the property is first moved.
EB 99 0l 12 t9 lncludes copyrighted material of lnsurance Services Office, lnc. with ils permission Page 2 of 20
c. Fire Department Service Gharge
When the fire department is called to save or
protect Covered Property from a Covered
Cause of Loss, we will pay up to $15,000 for
service at each premises described in the
Declarations.
Such limit is the most we will pay regardless of
the number of responding fire departments or
fire units, and regardless of the number or type
of services performed.
This Additional coverage applies to your liability
for fire department service charges:
(1) Assumed by contract or agreement prior to
loss; or
(2) Required by local ordinance.
d. Collapee
The coverage provided under this Additional
Coverage - Collapse applies only to an abrupt
collapse as described and limited in
Paragraphs d.(1) through d.(7).
(1) For the purpose of this Additional Coverage
- Collapse, abrupt collapse means an
abrupt falling down or caving in of a
building or any part of a building with the
result that the building or part of the
building cannot be occupied for its intended
purpose.
(2) We will pay for direct physical loss or
damage to Covered Property, causad by
abrupt collapse of a building or any part of
a building that is insured under this policy
or that contains Covered Property insured
under this policy, if such collapse is caused
by one or more of the following:
(a) Building decay that is hidden from
view, unless the presence of such
decay is known to an insured prior to
collapse;
(b) lnsect or vermin damage that is hidden
from view, unless the presence of such
damage is known to an insured prior to
collapse;
(c) Use of defective material or methods in
construction, remodeling or renovation
if the abrupt collapse occurs during the
course of the construction, remodeling
or renovation;
(d) Use of defective material or methods in
construction, remodeling or renovation
if the abrupt collapse occurs after the
construction, remodeling or renovation
is complete, but only if the coilapse is
caused in part by:
(i) A cause of loss listed in paragraph
(2)(a) or (2)(b);
(ii) One or more of the "specified
causes of loss,,;
(iii) Breakage of building glass;
(iv) Weight of people or personal
prope(y; or
(v) Weight of rain that collects on a
roof.
(3) This Additional Coverage - Cotlapse 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 frorn 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, setiling,
shrinkage or expansion.
(4) With respect to the following property:
(a) Awnings;
(b) Gutters and downspouts;
(c) Yard fixtures;
(d) Outdoor swimming pools;
(e) Piers, wharyes and docks;
(fl Beach or diving platforms o.
appurtenances:
(g) Retaining walls; and
(h) Walks, roadways and other paved
surfaces;
if an abrupt collapse is caused by a cause
of loss listed in Paragraphs (2)(a) through
(2)(d), we will pay for loss or damage to
that property only if such loss or damage is
a direct result of the abrupt collapse of a
building insured under this policy and the
property is Covered Property under this
policy.
(5) lf personal property abrupfly fails down or
caves in and such collapse is not the result
of abrupt collapse of a building, we will pay
for loes or damage to Covered propert!
causod by such collapse of personal
property only if:
(a) The collapse of personal property was
caused by a cause of loss listed in
Paragraphs (2|(a) through (zxd) of this
Addltional Coverage;
(b) The personal property which collapses
is inside a building; and
(c) The property which collapses is not ofa kind listed in paragraph (4),
regardless of whether that kind of
property is considered to be personal
property or real property.
EB 99 01 12 19 lncludes copyrightod matorial of lnsurance servicee office, lnc. with its permission Page 3 of 20
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
ahnrptly fallen down or caved in, even if the
personal property shows evidence of
cracking, bulging, sagging, bending,
leaning, settling, shrinkage or expansion.
(7) This Additional Coverage - Collapse will
not increase the Limits of lnsurance pro-
vided in this policy.
(8) The term Covered Cause of Loss includes
the Additional Coverage - Collapse as
described and limited in Paragraphs d.(1)
through d.(7).
e. Watsr Damage, Other Liqulds, Powder Or
Molten Material Damage
lf loss or damage caused by or resulting from
covered water or other liquid, powder or molten
material occurs, we will also pay the cost to tear
out and replace any part of the building or
structure to repair damage to the system or
appliance from which the water or other
substance escapes.
We will not pay the cost to repair any defect
that caused the loss or damage, but we will pay
the cost lo repair or replace damaged parts of
fire extinguishing equipment if the damage:
(,l) Results in discharge of any substance from
an automatic fire protection system; or
(2) ls directly caused by freezing.
f. Businees lncome
(1) Business lncome
(a) We will pay for the actual loss of
Business lncome 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. Wth respeci to loss of
or damage to personal property in the
open or personal property in a vehicle,
the described premises include the
atea within 1,000 feet of such
premises.
\Mth respect to the requirements set
forth in the preceding paragraph, if you
occupy only part of a building, your
premises means:
(i) The portion of the building which
you rent, lease or occupy;
(ii) The area within 1,000 feet of the
building or within 1,000 feet of thepremises described in the
Declarations, whichever distance
is greater (with respect to loss of or
damage to personal property in the
open or personal property in a
vehicle); and
(iii) Any area within the building or at
the described premises, if that area
services, or is used to gain access
to, the portion of the building which
you rent, lease or occupy.
(b) We will only pay for loss of Business
lncome that you sustain during the
"period of restoration" and that occurs
within 12 consecutive months, unless a
revised period of indemnig is shown in
the Declarations, after the date of direct
physical loss or damage. We will only
pay for ordinary payroll expenses for
60 days following the date of direct
physical loss or damage, unless a
greater number of days is shown in the
Declarations.
(c) Business lncome means:
(i) Net lncome (Net Profit or Loss
before income taxes) that would
have been earned or incurred if no
physical loss or damage had
occurred, but not including any Net
lncome that would likely have been
earned as a result of an increase in
the volume of business due to
favorable business conditions
caused by the impact of the
Covered Cause of Loss on
customers or on other businesses;
and
(ii) Continuing nonnal operating
expenses incurred, including
PaYroll.
(d) Ordinary payroll exp€nses:
(i) Means payroll expenses for all
your employees except:
i. Officers;
ii. Executives;
iii. Departmenl Managers;
iv. Employees under contract;
and
v, Additional Exemptions shown
in the Declarations as:
EB 99 0t 12 19 lncludes copyrighted material of lnsurance Services Office, Inc, with ils permission Paga 4 of 20
a Job Classifications; or
a Employees.
(ii) lnclude:
i. Payroll;
ii. Employee benefils, if direcfly
related to payroll;
iii. FICA Payments you pay;
iv. Union dues you pay; and
v. Workers' compensation
premiums.
(2) Extended Buginess lncome
{a) lf the necessary suspension of your
"operations" produces a Business
lncome loss payable under this policy,
we will pay for the actual loss of
Business lncome you incur during the
period that:
(i) Begins on the date property except
finished stock is actually repaired,rebuilt or replaced and
"operations" are resumed; and
(ii) Ends on the earlier of:
i. The date you could restoreyour "operations", with
reasonable speed, to the level
which would generate the
Business lncome amount that
would have existed if no direct
physical loee or domagc had
occurred; or
ii. 60 consecutive days after the
date determined in Paragraph
(a)(i) above.
However, Extended Business lncome
does not apply to loss of Business
lncome incurred as a result of
unfavorable business conditions
caused by the impact of the Covered
Cause of Loss in the area where the
described premises are located.
(b) Loss of Business lncome must be
caused by direct physical loss or
damage at the described premises
caused by or resulting from any
Covered Cause of Loss.
(3) With respect to the coverage provided inthis Additional Coverage, suspension
means:
(a) The partial slowdown or complete
cessation of your business activities; or
(b) That a part or ail of the described
premises is rendered untenantable, if
covarage for Business lncome applies.
(4) This Additional Coverage is not subject to
the Limits of lnsurance of Section I -Property.
g. Extra Expenae
(l) We will pay necessary Extra Expense you
incur during the "period of restoration" that
you would not have incurred if there had
been no direct physical loss or damage to
property at the described premises. The
loss or damage must be caused by or result
from a Covered Cause of Loss. Wth
respect to loss of or damage to personal
property in the open or personal property in
a vehicle, the described premises include
the area within 1,000 feet of such premises,
\Mth respect to the requirements set forth
in the preceding paragraph, if you occupy
only part of a building, your premises
means:
(a) The portion of the building which you
rent, lease or occupy;
(b) The area within 1,000 feet of the
building or within 1,000 feet of thepromises described in the
Declarations, whichever distance is
greater (with respect to loss of or
damage to personal property in the
open or personal property in a vehicle);
and
(c) Any area within the building or at the
described premises, if that area
services, or is used to gain access to,
the portion of the buitding which you
rent, lease of occupy.
(2) Extra Expense means expense incurred:
(a) To avoid or minimize the suspension of
business and to continue "operations":
{i) At the described premises; or
(ii) At the replacement premises or at
temporary locations, including
relocation expenseg, and costs to
equip and operate the replacement
or temporary locations.
(b) To minimize the suspension of
business if you cannot continue
"operations".
(c) To:
(l) Repair or replace any property; or
(ii) Research, replace or restore thelost information on damaged
"valuable papers and records':
To the extent it reduces ths amount of
loss that otherwise would have beenpayable under this Additional
Coverage or Additional Coverage f.
Bueiness lncome.
EB 99 01 1219 lncludes copyrighted malerial of lnsurance Services office, lnc. with its pormission Page 5 of 20
3l With respect to the coverage provided inthis Additional Coverage, suspension
means:
{a) The partial slowdown or complete
cessation of your business activities, or
(b) That part or all of the described
premises is rendered untenantable, if
coverage for Business lncome applles.
(4) We will only pay for Extra Expense that
occurs within 12 consecutive months,
unless a revised period of indemnity is
shown in the Declarations, afier the date of
direct physical loss or damage.
This Additional Coverage is not subject to
the Limits of lnsurance of Section | -
Property.
h. Pollutant Glean.up And Removal
We will pay your expense to extract "pollutants"
from land or water at the described premises if
the discharge, dispersal, seepage, migration,
release or escape of the "pollutants" is caused
by or results from a Covered Cause of Loss
that occurs during the policy period. The
expenses will be paid only if they are reported
to us in writing within 180 days of the date on
which the Covered Cause of Loss occurs.
This Additional Coverage does not apply to
costs to test for, monitor or assess the
existence, concentration or effects of
"pollutants". But we will pay for testing which is
performed in the course of extractlng the
"pollutants" from the land or water.
The most we will pay for each location under
this Additional Coverage is $15,000 for the sum
of all such expenses arising out of Covered
Causes of Loss occurring during each separate
'12-month period of this policy.
i. CivilAuthorlty
When a Covered Cause of Loss causes
damage to property other than property at the
described premises, we will pay for the actual
loss of Business lncome you sustain and
necessary Extra Expense caused by action of
civil authority that prohibits access to the
described premises, provided that both of the
following apply:
(1) Access to the area immediately
surrounding the damaged property is
prohibited by civil authority as a result of
the damage, and the described premises
are within that area but are not more than
one mile from the damaged property; and
(2) The action of civil authority is taken in
response to dangerous physical conditions
resulting from the damage or continuation
of the Covered Cause of Loss that caused
the damage, or the action is taken to
enable a civil authority to have unimpeded
access to the damaged property.
Civil Authority Coverage for Business lncome
will begin 72 hours after the time of the llrst
action of civil authority that prohibits access to
the described premises and will apply for a
period of up to four consecutive weeks from the
date on which such coverag€ began.
Civil Authority Coverage for necessary Extra
Expense will begin immediately afier the time
of the first action of civil authority that prohibits
access to the described premises and willend:
(1) Four consecutive weeks after the date of
that action; or
(2) \Mlen your Civil Authority Coverage for
Business Income ends;
whichever is later,
The definitions of Business lncome and Extra
Expense contained in the Business lncome and
Extra Expense Additional Coverages also
apply to this Civil Authority Additional
Coverage. The Civil Authority Additional
Coverage is not subject to the Limits of
lnsurance of Seclion I - Property.
j. Money Orders And "Counterfelt Money"
We will pay for loss resulting directly from your
having accepted in good faith, in exchange for
merchandise, "money" or services:
(l) Money orders issued by any post office,
express company or bank that are not paid
upon presenlation; or
(2) "Counterfeit money" that is acquired during
the regular course of business.
The most we will pay for any loss under this
Additional Goverage is $5,000.
No Deductible applies to this Additional
Coverage.
k. Employee Diehonesty
(1) We will pay for direct loss of or damage to
Business Personal Property and "money"
and "securities" resulting from dishonest
acts committed by any of your employees
acting alone or in collusion with other
persons (except you or your partner) with
the manifest intent to:
(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:
EB 99 01 {2 19 lncludes copyrighted material of lnsurance Services Office, lnc. with ils permission Page 6 of 20
(i) Any employee; or
(ii) Any other person or organization.
(2) We will not pay for loss or damage:
(al Resulting from any dishonest or
criminal act that you or any of your
partners commit whether acting alone
or in collusion with other persons.
(b) Resulting from any dishonest act
committed by any of your employees
(except as provided in Paragraph a.),
"managers" or directors:
(i) \Mrether acting alone or in
collusion with other persons; or
(ii) While performing services for you
or otherwise.
(c) The only proof of which as to its
existence or amount is:
(i) An inventory computation; or
(ii) A profit and loss computation.
(d) Caused by an emptoyee if the
employee had also committed theft or
any other dishonest act prior to the
etfective date of this policy and you orany of your partners, "members',,
"managers", officers, directors or
trustees, not in collusion with the
employee, learned of that theft or
dishonest act prior to the policy period
shown in the Declarations.
(3) The most wa will pay for loss or damage in
any one occurrence is:
(a) $15,000; or
(b) the Limit of lnsurance shown in the
Declarations for Employee Dishonesty;
whichever is greater.
(4) Allloss or damage:
(a) Caused by one or more persons; or
(b) lnvolving a single act or series of
related acts;
is considered one occurrence.
(5) 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 lnsurance
cumulates from year to year or period lo
period.
(6) This Additional Coverage does not apply to
any employee immediately upon discovery
by:
(a) You; or
(b) Any of your partners, 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 only pay for covered loss or
damage suslained during the policy period
and discovered no later than one year from
the end of the Policy Period.
(8) lf you (or any predecessor in interest)
sustained loss or damage during the 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 the loss or damage
were committed or occurred.
Wth rospect to the Employee Dishonesty
Additional Coverage, employoe means:
(a) Any natural person:
(i) tA/hile in your services or for 30
days after termination of service;
(ii) Wlro you compensate direcily by
salary, wages or commissions;
and
(iii| \Mro you have the right to directand control while performing
services for you;
(b) Any natural person who is furnished
temporarily to you:
(i) To substitute for a permanent
employee, as defined in
Paragraph (1) above, who is on
leave; or
{ii) To meet seasonal or short-lerm
workload conditions;
(c) Any natural p€rson who is leased toyou under a written agreement
between you and a lab leasing firm, to
perform duties related to the conduct ofyour business but does not mean a
temporary employee as defined in
Paragraph (b) above;
(d) Any natural person who is a former
employee, director, partner, member,
manager, representative or trusteeretained as a consultant while
performing services for you; or
EB 99 0t 12 t9 lncludes copyrighted material of lnsurance services ofrice, lnc, wilh its permission Page 7 of 20
(e) Any natural person who is a guest
student or intern pursuing studies or
duties, excluding, however, any such
person while having care and custody
of property outside any building you
occupy in conducting your business.
But employee does not mean:
(a) Any agent, broker, factor, commlsslon
merchant, consignee, independent
contractor or representative of the
same general character;
(b) Any "manager", director or trustee
except while performing acts coming
within the usual duties of an employee.
l. Forgery Or Alteration
(1| We will pay for loss resulting directly from
forgery or alteration of. any check. draft,
promissory note, bill of exchange or similar
written promise of payment in "money", that
you or your agent has issued, or that was
issued by someone who impersonates you
or your agent.
{21 lf you are sued for refusing to pay the
check, draft, promissory note, bill of
exchange or similar written promise of
payment in "money", on the basis that it
has been forged or altered, and you have
our written consent to defend against the
suit, we will pay for any reasonable legal
expenses that you incur in that defense,
{3) For the purpose of this coverage, check
includes a substitute check as defined in
the Gheck Clearing for the 21st Century
Act, and will be treated the same as the
original it replaced.
(4) The most we will pay for any loss, including
legal expenses, under this Additional
Coverage is:
(a) $15'000; or
(b) the Limit of lnsurance shown in the
Declarations for Forgery Or Alteration;
whichever is greater.
m. Ordinance Or Law Coverage
This Additional Coverage applies only to
buildings insured on a replacement cost basis.
Exclusion B.1.a. Ordinance Or Law in Section I
- Property is deleted.
(1) Coverage
(a) Goverage 1 - CovErage for Loss to
the Undamaged Portion of the
Building.
lf a Covered Cause of Loss occurs to
Covered Building Property, we will pay
for loss to the undamaged portion of
the building caused by enforcement of
or compliance with any ordinance or
law that:
(i) Requires the demolition of parts of
the same property not damaged by
a Covered Cause of Loss;
(ii) Regulates the construction or
repair of buildings, or establishes
zoning or land use requirements at
the described premises; and
(iii) ls in force at the time of loss.
(b) Goverage 2 - Demolition Cost
Coverage,
We will pay the cost to demolish and
clear the site of undamaged parts of
the property caused by enforcement of
building, zoning or land use ordinance
or law.
(c) Coverage 3 - lncreaaed Cost of
Construction Coverage.
We will pay for the increased cost to
repair, rebuild or construct the property
caused by enforcement of or
compliance with building, zoning or
land use ordinance or law. lf the
property is repaired or rebuilt, it must
be intended for similar occupancy as
the current property, unless otherwise
required by zoning or land use
ordinance or law. Coverage also
applies if the ordinance or law requires
relocation to another premises.
However, we will not pay for the
increased cost of construction if the
building is not repaired or replaced.
(2) We will not pay under this endorsement for
the costs associated with the enforcement
of or compliance with any ordinance or law
which requires any insured or others to test
for, monitor, clean up, remove, contain,
treat, detoxifo or neutralize, or in any way
respond to, or assess the effects of
"pollutants."
(3) We will not pay under this endorsement for
loss due to any ordinance or law that:
(a) You were required to comply with
before the loss, even if the building
was undamaged; and
(b) You failed to comply with.
(4) The most we will pay under this Additional
Coverage for loss or damage to Covered
Property is;
(a) $100,000 at each location; or
(b) the Limit of lnsurance shown in the
Ordinance Or Law Coverage
endorsement;
whichever is greater.
EB 99 0t 12 19 lncludes copyrighted material of lnsurance Services Oflice, lnc. with its permission Page 8 of 20
n. Business lncome From Depondent
Propertles
(1) We will pay for the actual loss of Business
lncome you sustain due to physical loss or
damage at the premises of a dependent
property caused by or resulting from any
Covered Cause of Loss.
However, this Additional Coverage does
not apply when the only loss at the
dependent property is loss or damage to
"electronic data", including destruction or
corruption of "electronic data". lf the
dependent property sustains loss or
damage to "electronic data" and other
property, coverage under this Additional
Coverage will not continue once the other
property is repaired, rebuilt or replaced.
The most we will pay under this Additional
Coverage is $10,000.
(2) We will reduce the amount of your
Business lncome 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) lf you do not resume "operations", or do not
resume "operations" as quickly as possible,
we will pay based on the tength of time it
would have taken to resume "operations',
as quickly as possible.
(4) Dependent property means property
owned by others whom you depend on to:
(a) Deliver materials or services to you, or
to others for your account. But services
does not mean water supply services,wastewater removal seryices,
communication supply services or
power supply services;
(b) Accept your products or services,
(c) Manufacture your products for delivery
to your customers under contract for
sale; or
(d) Attract customers to your business.
The dependent property must be located in
the coverage territory of this policy.
(5) The coverage period for Business lncome
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 lhe premises of the dependent
property; and
(b) Ends on the date when the property atthe premises of the dependent
properg should be repaired, rebuilt or
replaced with reasonable speed and
similar quality.
(6) The Business lncome coverage period, as
stated in Paragraph (5), does not include
any increased period required due to the
enforcement of or compliance with any
ordinance or law that:
(a) Regulates the construction, use or
repair, or requires the tearing down of
any property; or
{b) Requires any insured or others to test
for, monitor, clean up, remove, contain,
treat, detoxify or neutralize, or in any
way respond to, or assess the effects
of "pollutants".
The expiration date of this policy will not
reduce the Business lncome coverage
period.
(7) The definition of Business tncome
contained in the Business lncome
Additional Coverage also applies to thisBusiness lncome From Dependent
Prope(ies Additional Coverage.
o, Glass Expenses
(1) We will pay for expenses incurred to put up
temporary plates or board up openings if
repair or replacement of damaged gla.ss is
delayed.
(2) We will pay for expenses incurred to
remove or replace obstructions when
repairing or replacing glass that is part of a
building. This does not include removing or
replacing window displays.
p. Fire Edinguisher Systeme Recharge
Expense
(1) We willpay:
(a) The cost of recharging or replacing,
whichever is less, your fire
extinguishers and fire extinguishing
systems (inctuding hydrostatic testing if
needed) if they are discharged on orwithin '100 feet of the described
premises; and
(b) For loss or damage to Covered
Property if such loss or damage is the
result of an accidental diacharge of
chemicals from a lire extinguisher or a
fi re extinguishing system.
(2) No coverage will appty if the fire
eXinguishing system is discharged during
installation or testing.
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(3) The most we will pay under this Additional
Coverage is $10,000 in any one
occurrence.
No Deductible applies to this Additional
Coverage.
q. Electronic Data
({} Subject to the provisions of this Additional
Coverage, we will pay for the cost to
replace or restore "electronic data" which
has been destroyed or corrupted by a
Covered Cause of Loss. To the extent that
"electronic data" is not replaced or
restored, the loss will be valued at the cost
of replacement of the media on which the
"electronic data" was stored, with blank
media of substantially identical type.
(2) The Covered Causes of Loss applicable to
Business Personal Property include a
computer virus, harmful code or similar
instruction introduced into or enacted on a
computer system (including "electronic
data") or a network to which it is connected,
designed to damage or destroy any part of
the system or disrupt its normal operation.
But there is no coverage for loss or damage
caused by or resulting from manipulation of
a computer system (including "electronic
data") by any employee, including a
temporary or leased employee, or by an
entity retained by you, or for you, to
inspect, design, install, modify, maintain,
repair or replace that system.
(3) The most we will pay under this additional
Coverage - Electronic Data for all loss or
damage sustained in any one policy year is
$25,000, regardless of the number of
occurrences of loss or damage or the
number of premises, locations or computer
systems involved. lf 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. \Mth 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.
(a) This Additional Coverage does not apply to
your "stock" of prepackaged software, or to
"electronic data" which is integrated in and
operates or controls a building's elevator,
lighting, heating, ventilation, air
conditioning or security system.
t. lnterruption Of Computer Operations
('l) Subject to all provisions of this additional
Coverage, you may extend the insurance
that applies to Business lncome and Extra
Expense to apply to a suspension of
"operations" caused by an interruption in
computer operations due to destruction or
corruption of "electronic data" due to a
Covered Cause of Loss.
(2) Wth respect to the coverage provided
under this Additional Coverage, the
Covered Causes of Loss are subject to the
following:
(a) Coverage under this Additional
Coverage - lnterruption Of Computer
Operations is limited to the "specified
causes of loss" and Collapse.
(b) lf the Businessowners Coverage Form
is endorsed to add a Covered Cause of
Loss, the additional Covered Cause of
Loss does not apply to the coverage
provided under this Additional
Coverage.
(c) The Covered Causes of Loss include a
computer virus, harmful code or similar
instruction introduced into or enactedon a computer system (including
"electronic data") or a network to which
it is connected, designed to damage or
destroy any part of the system or
disrupt its normal operation. But thereis no coverage for an interruption
related to manipulation of a computer
system (including "electronic data") by
any employee, including a temporary or
leased employee, or by an entity
retained by you, or for you, to inspect,
design, install, modify, maintain, repair
or replace that system.
(3) The most we will pay under this Additional
Coverage lnterruption Of Computer
Operations is $25,000 for all loss sustained
and expense incurred in any one policy
year, regardless of the number of
interruptions or the nurnber of premises,
locations or computer systems involved. lf
loss payment relating to the first
interruption does not exhaust this amount,
then the balance is available for loss or
expense sustained or incurred as a result
of subsequent interruptions in that policy
year. A balance remaining at the end of a
policy year does not increase the amount
of insurance in the next policy year. Wth
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.
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(4| This Additional Coverage - Interruption Of
Computer Operations does not apply to
loss sustained or expense incurred afier
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 lncome does not
apply when a suspension of "operations" is
caused by destruction or corruption of
"electronic data", or any loss or damage to
"electronic data", except as provided under
Paragraphs (1) through (4) of this
Additional Coverage.
(6) Coverage for Extra Expense does not
apply when action is taken to avoid or
minimize a suspension of "operations"
caused by destruction or corruption of
"electronic data", or any loss or damage to
"electronic data", except as provided under
Paragraphs (1) through (4) of this
Additional Coverage.
(7) This Additional Coverage does not appty
when loss or damage to "electronic data,'
involves only "electronic data" which is
integrated in and operates or controls a
building's elevator, lighting, heating,
ventilation, air conditioning or security
system.
a. Llmited Goverage For "Fungi", Wot Rot Or
Dry Rot
({) The cr:,veragc described in Paragraphs
s.{2) and s.(6) only applies when the
"fungi", wet rot or dry rot is the result of a
"specified cause of loss" other than fire or
lightning that occurs during the policy
period and only if all reasonable means
were used to save and proserve the
property from further damage at the time of
and after that occurrence.
This Additional Coverage does not apply to
lawns, tree6, shrubs or plants which are
part of a vegetated roof.
(2) We will pay for loss or damage by "fungi',,
wet rot or dry rot. As used in this Limited
Coverage, the term loss or damage means:
(a) Direct physical loss or damage to
Covered Property caused by ,,fungi",
wet rot or dry rot, including the cost of
romoval of the "fungi", wet rot or dry
rot;
(b) The cost to tear out and replace any
part of the builcting or other property as
needed to gain access to the "fungi,,,
wet rot or dry rot; and
(c) The cost of testing performed afterremoval, repair, replacement or
restoration of the damaged property is
completed, provided there is a reason
to believe that "fungi", wet rot or dry rot
are present.
(3) The coverage described under this Limited
Coverage is limited to $15,000. Regardless
of the number of claims, this limit is the
most we will pay for the total of all loss or
damage arising out of all occurrences of
"speeified causes of loss" (other than fire or
lightning) which take place in a 12-month
period (starting with the beginning of the
present annual policy period). With respect
to a particular occurrence of loss which
results in "fungi", wet rol or dry rot, we will
not pay more than the total of 915,000 even
if the "fungi", wet rol or dry rot continues to
be present or active, or recurs, in a later
policy period.
(4) The coverage provided under this Limited
Coverage does not increase the applicableLimit of lnsurance on any Covered
Property. lf a particular occurrence results
in loss or damage by "fungi", wet rot or dry
rot, and other loss or damage, we will notpay more, for the total of all loss or
damage, than the applicabte Limit of
lnsurance on the affected Covered
Property.
lf there is covered loss or damage to
Covered Property, not caused by "fungi',,
wet rot or dry rot, loss paymenl will not belimited by the terms of this Limited
Coverage, except to the extent that ',fungi,',
wet rot or dry rot causes an increase in the
loss. Any such increase in the loss will be
subject to the terms of this Limited
Coverage.
(5) The terms of this Limited Coverage do not
increase or reduce the coverage provided
under lhe Water Damage, Other Liquids,
Powder Or Mollen Material Damage or
Collapso Additional Coverages.
(6) The following applies only if Business
lncome andlor Extra Expenso Coverage
applies to the described premises and onlyif the suspension of ,'operations" Eatisfiesall the terms and conditions of the
applicable Business lncome andlor Extra
Expense Additional Coverage.
(a) lf the loss which resulted in ,'fungi", wetrot or dry rot does not in itselfnecessitate a suspension of
"operations", but such suspension is
necessary due to loss or damage to
property caused by "fungi", wet rot or
dry rot, then our payment under theBusiness lncome and/or Extra
Expense is limited to the amount of
loss and/or expense sustained in a
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period of not more than 30 days. The
days need not be consecutive.
(b) lf a covered suspension of "operations"
was caused by loss or damage other
than "fungi", wet rot or dry rot, but
remediation of "fungi", wet rot or dry rot
prolongs the "period of restoration", we
will pay for loss and/or €xp€n6s
sustained during the delay (regardless
of when such a delay occurs during the
"period of restoration"), but such
coverage is limited to 30 days. The
days need notbe consecutive.
t. Lock and Key Replacement
We will pay the cost of:
({} Premises entry key(s) replacement, if keys
are stolen; or
(2) Premises entry lock repair or replacement
made necessary by theft or attempted theft
at the described premises.
The. most we will pay under this Additional
Coverage is $2,500 any one occurrence,
unless a higher limit of insurance is shown in
the Declarations.
No Deductible applies to this Additional
Coverage.
u. Utility Services
We will pay for:
(1) Direct physical loss or damage to Covered
Property caused by an interruption of
services to the described premises, The
interruption must result from direct physical
loss or damage by a Covered Cause of
Loss to property described in Paragraph (3)
Utility Services that is located outside of a
covered building described in the
Declarations; and
(2) The actual loss of Business lncome or
Extra Expense at the described premises
caused by the interruption of services to the
described premises, subject to the terms
and conditions of the Business lncorneandlor Extra Expense Additional
Coverages found in this endorsement. The
interruption must result from direct physical
loss or damage by a Covered Cause of
Loss to proper$ described in Paragraph (3)
Utili$ Services that is located outside of a
covered building described in the
Declarations.
(3) Utility Services include:
(a) Water Supply Services, meaning the
following types of property supplying
water to the described premises:
(i) Pumping stations;
(ii) Water mains.
(b) Communication Supply Services,meaning property supply
communication services, including
telephone, radio, microwave or
television services to the described
premises, such as:
(i) Communication transmissionlines, including optic fiber
transmission lines;
(ii) Coaxial cables; and
(iii)Microwave radio relays except
satellites.
{cf Power Supply Services, meaning the
following types of property supplying
electricig, steam or gas to the
described premises:
(i) Utility generating plants;
(ii) Switching stations;
(iii) Substations;
(iv) Transformers;
(v) Transmissions lines.
(4) Exclusion 8.1.e.(1) in Section I - Property
does not apply to this Additional Coverag.e.
(5) The most we will pay under this Additional
Coverage is:
(a) $10,000 any one occurrence;or
(b) the limit of insurance shown in the
applicable Utility Services coverage
endorsement;
whichever is greater.
v. Reward Payment
We will pay for reasonable expenses you incur
for rewards that lead to:
(1) An arson conviction in connection with a
covered fire or explosion loss; or
(2) A theft conviction in connection with a
covered theff loss.
The most we will pay under this Additional
coverage is $10,000 each occurrence,
regardless of the number of persons providing
information.
No Deductible applies to this Additional
Coverage.
w. lnventory and Loss Adjustment Expensee
We will pay up to $5,000 each occurrence for
the cost of any inventory or appraisal required
as a result of direct physical loss or damage to
Covered Property caused by or resulting from
a Covered Gause of Loss. This Additional
Coverage will not pay for expenses incurred in
using the services of a public adjuster.
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No Deductible applies to this Additionat
Coverage.
x. Back-Up of Sewers, Drains or Sumps
We will pay for loss or damage to Covered
Property caused by or resulting from water that
backs up or overflows from a sewer, drain or
sump.
Exclusion 8.1.g.{3) in Section I - Property does
not apply to this Additional Coverage.
The most we will pay under this Additional
Coverage is $25,000 each occurrence, unless a
higher limit of insurance is shown in the
Declarations.
y, Money And Securities
(1) We will pay for loss of "money" and
"securities" used in your business while ata bank or savings institution, within your
living quarters or the living quarters of your
partners or any employee (including
temporary or leased employee) having use
and custody of the propefiy, at the
described premises, or in transit between
any of these places, resulting direcily from:
(a) Theft, meaning any act of stealing;
(b) Disappearance; or
(c) Destruction.
(2) ln addition to the Limitations andExclusions applicable to property
coverage, we will not pay for loss:
(a) Resulting from accounting or
arithmetical errors or omissions;
(b) Due to the 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 bya continuous recording instrument in
the device,
(3) The most we will pay for loss in any one
occurrence is:
(a) $10,000 for tnside the premises for
"money" and "gecurities" while in or onthe described premises or within a
bank or savings institution and $2,000
for Outside the Premises for "money"
and "securities" while anywhere else,
or
(b) the Limit of lnsurance ehown for Money
and Socurities in the Declarations;
whichever is greater.
(4) Allloss:
(a) Caused by one or more persons; or
(b) lnvolving a single act or series of
related acts;
is considered one occurrence.
(5) You must keep records of all ,,money', and
"securities" so we can veriff the amount of
any loss or damage.
z. Fine Arts
(1| We will pay for loss or damage to your ,'fine
arts" and "fine arts" owned by others in your
care, custody or control at covered
locations. We cover such property against
direct physical loss or damage from a
Covered Cause of Loes applying to your
business personal property at the location.
(2) We will not gay for loss caused by
processing of or work upon the covered
property including repairs or restoration.
We will not pay for any reduction in the
value of damaged property after the
damage has been repaired.
(3) The most we will pay for loss or damage in
any one occurrence is $10,000 subject to
an Annual Policy Aggregate of $10,000.The Business Personal property
deductible, as shown in the Declarations,
applies to this Additional Coverage.
(a) The value of fine arts will be the least of the
following amounts:
(a) The actual cash value of that property;
{b) The cost of reasonably restoflng that
property to its condition immediately
before loss; or
(c) The cost of replacing that property with
substantially identical property.
{5} ln the event of loss, the value of the
property will be determined as of the time
of loss.
(6) lf there is other insurance covering the
same lose or damage provided Oy ttris
Additional Coverage, whelher covered by
this policy or any other policy, we will pay
only for lhe amount of covered loss or
damage in excess of the amount due from
that other insurance, but we will not pay
more than the applicable limit of insurance
shown in Paragraph (3) above.
aa. Voluntary Parting
We will pay for loss or damage to covered
groperty when you or your employees are
fraudulently induced to part with Covered
Property to or by:
(1) Persons who falsely represent themselvesas the proper persons to receive the
property; or
(2) Acceptance of fraudulent bills of lading or
shipping receipts.
This additional coverage is not eubject to the
terme of the Voluntary parting Exclusion.
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The most we will pay under this Additional
Coverage for loss or damage in any one
occurrence is $10,000. The limit is part of, not
in addition to, the applicable Limit of lnsurance,
3. Paragraph 6. Coverage Extensions in Section I -
Property is deleted in its entirety and replaced by
the following:
ln addltlon to the Llmlts ol lnsurance ol Sectiorr I -
Property, you may extend the insurance provided
by this policy as provided below.
Except as otherwise provided, the following
Extensions apply to properg located in or on the
building described in the Declarations or in the open
(or in a vehicle) within 1,000 feet of the described
premises,
a. Newly Acquired Or Conetructed Property
(1) Buildings
lf this policy covers Buildings, you may
extend that insurance to apply to:
(a) Your new buildings while being built on
the described premises; and
(b) Buildings you acquire at premises
other than the one described, intended
for:
(i) Similar use as the building
described in the Declarations; or
(ii) Use as a warehouse.
The most we will pay for loss or damage
under this Extension is $500,000 at each
building.
(2) Business Personal Property
lf this policy covers Business Personal
Property, you may extend that insurance to
apply to:
{a) Business Personal Property, including
such proper$ that you newly acquire,
at any location you acquire; or
(b) Business Personal Property, including
such property that you newly acquire,
located at your newly constructed or
acquired buildings at the location
described in the Declarations; or
This Extension does not apply to personal
property that you temporarily acquire in the
course of installing or performing work on
such property or your wholesale activities.
The most we will pay for loss or damage
under this Extension is $250,000 at each
building.
(3) Period Of Coverage
With respect to insurance provided under
this Goverage Extension for Newly
Acquired Or Constructed Property,
coverage will end when any of the following
first occurs:
(a) This policy expires;
(b) 90 days expire after you acquire the
property or begin construction of that
part of the building that would qualify as
Covered Property; or
(c) You report values to us.
We will charge you additional premium for
values reported from the date you acquire
the property or begin construction of that
part of the building that would qualify as
Covered Properg.
b. Personal Property Off-Premises
You may extend the insurance that applies to
Business Personal Property to apply to covered
Business Personal Property, other than
"money" and "securities" and "valuable papers
and records," while it is in the course of transitor temporarily away from the described
premises. The most we will pay for loss or
damage under this Extension is $25,000,
unless a higher limit of insurance is shown in
the Declarations.
c. Outdoor Property
You may extend the insurance provided by this
policy to apply to your outdoor fences, radio
and television antennas (including satellite
dishes), lawns, trees, shrubs and plants (other
than "stock" of trees, shrubs or plants or trees,
shrubs or plants which are part of a vegetated
roof), including debris removal expense,
caused by or resulting from any of the following
causes of loss:
(1) Fire;
(2) Lightning;
(3) Explosion;
(4) Riot or Civil Commotion; or
(5) Aircraft.
The most we will pay for loss or damage under
this Extension is $10,000 but not more than
$1,000 for any one tree, shrub or plant. These
limits apply to any one occurrence, regardless
of the types or number of items lost or
damaged in that occurrence.
Subject to all aforementioned lerms and
limitations of coverage, this Coverage
Extension includes the expense of removing
from the described premises the debris of trees,
shrubs and plan{s which are the property of
others, except in the situation in which you are
a tenant and such property is owned by the
landlord of the descried premises.
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d. Personal Effects and Property Of Others
You may extend this insurance that applies to
Business Personal Property to apply to:
(1) Personal effects, including tools, owned byyou, your officers, your pariners or
"members", your "managers" or your
employees, including temporary or leased
employees. This extension does not apply
to loss or damage by theft,
The most we will pay for loss or damage
under d.(1) is $2,500 per person up to a
maximum of $10,000 at each described
premises.
(2) Personal property of others in your care,
custody or control.
The most we will pay for loss or damage
under d.(2) is $2,500 at each described
premises, unless a higher limit of insurance
is shown in the Declarations for personal
Property Of Others.
e. Valuable Papers And Records
(1) You may extend the insurance that applies
to Business Personal Property to apply to
direct physical loss or damage to ,,valuable
papers and records" that you own, or that
are in your care, custody or control caused
by or resulting from a Covered Cause of
Loss. This Coverage Extension includes
the cost to research, replace or restore the
lost information on "valuable papers and
records" for which duplicates do not exist.
(2) This Coverage Extension does not apply
to:
(a) Property held as samples or for
delivery after sale; and
(b) Property in storage away from the
premises shown in the Declarations.
(3) The most we witl pay under this Coverage
Extension for loss or damage to ,,valuable
papers and records" in any one occurrence
at the described premises is $25,000. This
limit is in addition to any amount shown in
the Declarations.
For "valuable papers and records', not at
the described premises, the most we will
pay is $5,000.
(4) Loss or damage to "valuable papers and
records" wlll be valued at the cost of
restoralion or replacement of the lost or
damaged information. To the extent that
the contents of the "valuable papers and
records" are not restored, the .valuable
papers and records" will be valued at the
cost of replacement with blank materials of
substantially identical type.
(5) Paragraph B. Exclusions in Section I -Property does not apply to this Coverage
Extension except for:
(a) Paragraph B.l.c., Governmental
Action;
(b| Paragraph B.'1.d., Nuctear Hazard;
(c) Paragraph B.l.f., War And Mititary
Action;
(d) Paragraph 8.2.f., Dishonesty;
(e) Paragraph 8.2.g,, False pretense:
(f) Paragraph 8.2.m.(2), Errors Or
Omissions: and
(g) Paragraph B.3.
f. Accounte Receivable
(1) You may extend the insurance that applies
to Business Personal Property to apply to
accounts receivable. We will pay:
(a) All amounts due from your customers
that you are unable to collect;
(b) lnterest charges on any loan required
to offset amounts you are unable to
collect pending our payment of these
amounts;
(c) Colleetion expenses in excess of your
normal collection expenses that are
made necessary by loss or damage;
and
(d) Other reasonable expenses that you
incur to reesieblish your records of
accounts receivable;
that result fiom direct physical loss or
damage by any Covered Cause of Loss to
your records of accounts receivable.
(2) The most we will pay under this Coverage
Extension for loss or damage in any one
occurrence at the described premises is
$25,000. This limit is in addition to any
amount shown in the Declarations.
For accounts receivable not at the
described premises, the most we will pay is
$s,000,
(3) Paragraph B. Exclusions in Section I -Property does not apply to this Coverage
Extension except for:
(a) Paragraph B.l.c., Governmental
Action;
(b) Paragraph 8.1.d., Nuclear Hazard;
(c) Paragraph B.1.f., War And Military
Action;
(d) Paragraph 8.2.f., Dishonesty;
(e) Paragraph 8.2.9., False pretense;
(f) Paragraph 8.3.; and
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(g) Paragraph 8.6., Accounts Receivable
Exclusion.
g. Detached Signs
(1| We will pay for direct physical loss of or
damage to all detached signs at the
described premises:
(a) Owned by you; or
(b) Owned by others but in your care,
custody or control.
(2) Paragraph A.3., Covered Causes Of Loss,
and Paragraph B., Exclusions in Section I
- Property, do not apply to this Coverage
Extension, except for:
(a) Paragraph 8.1.c., Governmental
Action;
(b) Paragraph 8.1.d., Nuclear Hazard;
and
(c) Paragraph 8.1.f., War and Military
Action.
(3) We will not pay for loss or damage caused
by or resulting from:
(a) Wear and tear;
(b) Hidden or latent defect;
(c) Rust;
(d) Corrosion; or
(e) Mechanical breakdown
(4) The most we will pay for loss or damage in
any one occurrence is:
(a) $10'0oo; or
(b) the Limit of lnsurance shown in the
Declarations for Detached Signs;
whichever is greater.
h, Business Personal Property Temporarily
In Portable Storage Units
(1) You may extend the insurance that
applies to Business Personal Propertyto apply to such property while
temporarily stored in a portable storage
unit (including a detached kailer)
located within 100 feet of the buildingsor structures described in the
Declarations or within 100 feet of the
described premises, whichever
distance is greater.
(2) The limitation under Paragraph
A.a,a.(s) also applies to property in a
portable storage unit.
(3| Coverage underthis Extension:
(a) Willend 90 days after the Business
Personal Property has been
placed in the storage unit;
(b) Does not apply if the storage unit
itself has been in use at the
described premises for more than
90 consecutive days, even if the
Business Personal Property has
been stored there for 90 or fewer
days as of the time of loss or
damage.
(4) Under this Extension, the most we will
pay for the total of all loss or damageto Business Personal Property is
$10,000 (unless a higher limit is
indicated in the Declarations for such
Extension) regardless of the number of
storage units.
(5f This Extension does not apply to loss
or damage otherwise covered underthis Coverage Form or any
endorsement to this Coverage Form,
and does not apply to loss or damage
to the storage unit itself.
4. Paragraph C. Limits Of lnsurance in Section I -
Property is deleted in its entirety and replaced by
the following:
1. The most we will pay for loss or damage in any
one occurrence is the Limits of lnsurance of
Section I - Property shown in the Declarations
or the limit shown in this endorsement,
whichever is applicable.
2. The amounts of insurance applicable to the
Coverage Extensions and the following
Additional Coverages apply in accordance with
the terms of such coverages and are in addition
to the Limits of lnsurance of Section I -
Property:
a. Fire Department Service Charge;
b. Pollutant Clean-up And Removal;
c, Ordinance Or Law;
d. Business lncome From Dependent
Properties;
e. Electronic Data; and
f. lnterruption Of Computer Operations
3. Building Limit - Automatic lncrease
a. ln accordance with Paragraph C.3.b., the
Limit of lnsurance for Buildings will
automatically increase by 4o/o, unless a
different percentage of annual increase is
shown in the Declarations.
b. The amount of increase is calculated as
follows:
(1) Multiply the Building limit that applied
on the most recent of the PolicY
inception date, the policy anniversary
date, or any other policy change
amending the Building limit bY:
(a) The percentage of annual increase
shown in the Declarations,
expressed as a decimal (examPle:
7o/o is .07); or
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(b) .04, if no percentage of annual
increase is shown in the
Declarationsi and
(2) Multiply the number catculated in
accordance with b.({ } by the number of
days since the beginning of the current
policy year, or the effective date of the
most recent policy change amending
the Building limit, divided by 365.
Example:
tf:
The applicable Building limit is
$100,000. The annual percentage
increase is 4o/o. The number of days
since the beginning of the policy year
(or last policy change) is 146.
The amount of increase is
$100,000 x.04 x 146 + 365 = $1,600
4. Businees Perconal Property Limit
Seaeonal lncrease
a. Subject to Paragraph 3.b., the Limit of
lnsurance for Business personal property
is automatically increased by:
(1) The Business Personal property -Seasonal lncrease percentage shown
in the Declarations; or
l2l 25% if no Business personal property
- Seasonal lncrease percentage is
shown in the Declarations;
to provide for seasonal variances.
b. The increase described in paragraph 3.a.
will apply only if the Limit of -lnsurance
shown for Business pereonal property in
the Declarations is at laast 100% of your
average monthly values during the lesser
of:
(f ) The 12 months immediately preceding
the date the loss or damage occurs; or
(2) The period of time you have been in
business as of the date the loss or
damage occurs.
5. farlelaph D. Deductibles in Section I - property
ls deleted in its entirety and replaced by th6
following:
1. We will not pay for loss or damage in any one
occurrence until the amount of loss or damageexceeds the Deductible shown in the
Declarations. We will then pay the amount of
loss or damage per location in excess of theDeductible up to the appticable Limit of
lnsurance of Section I - property.
2. Regardless of the amount of the Deductible
shown in the Declarations, the most we will
deduct per location from any loss of or damage
to the following coverages is $800 any one
occurrence:
a. Building Glass;
b. EmployeeDishonesty;
c. Money and Securities;
d. Outdoor Signs (whether attached or
detached); and
e. Forgery or Alteration.
This Deductible will not increase the Deductibte
shown in lhe Declarations. The Deductible will
be used to satisfy the requirements of the
Deductible shown in the Declarations.
3. No deductible applies to the following
coverages:
a. Fire Department Service Charge;
b. Business lncome;
c. Extra Expense;
d. CivilAuthority; and
s- Fire Extinguisher Systems Recharge
Expense.
6. Paragraph E.6. Loss Payment of the property
Loss Conditions in Section | - property is deleted
and replaced by the following:
ln the event of loss or damage covered by this
policy:
a. At our option, we will either:
(f ) Pay the value of lost or damaged property;
(2) Pay the cost of ropairing or replacing the
lost or damaged property;
(3) Take alt or any part of the property at an
agreed or appraised value; or
(4) Repair, rebuild or replace the property with
other property of like kind and quality,
subject to Paragraph d.{f }(e) below.
b. We will give notice of our intentions within 30
days after we receive the sworn proof of loss.
c. We will not pay you more than your financial
interest in the Covered property.
d. We will determine the value of Covered
Property as follows:
(1) At replacement cost without deduction for
depreciation, except as provided in (2)
through (7)below"
(a) You may make a claim for loss or
damage covered by this insurance on
an actual cash value basis instead of
on a replacement cost basis. ln the
event you elect to have loss or damage
setfled on an actual cash value basis,you may still make a claim on a
replacement coet basis if you notify us
of your intent to do so within 190 days
after the loss or damage.
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(b) We will not pay on a replacement cost
basis for any loss or damage:
(i) Unlil the lost or damaged property
is actually repaired or replaced;
and
(ii) Unless the repairs or replacement
are made as soon as reasonably
possible after the loss or damage.
(c) We will not pay more for loss or
damage on a replacemenl cost basis
than the least of:
(i) The amount it would cost to
replace the damaged item at the
time of the loss with new property
of similar kind and quality to be
used for the same purpose on the
same site; or
(ii) The amount you actually spend in
repairing the damage, or replacing
the damaged property with new
property of similar kind and quality.
(d) The cost to repair, rebuild or replace
does not include the increased cost
attributable to enforcement of or
compliance with any ordinance or law
regulating the construction, use or
repair of any property.
(2) lf the "Actual Cash Value - Buildings" option
applies, as shown in the Declarations,
paragraph {l) above does not apply to
Buildings. lnstead, we will determine the
value of Buildings at 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
govems 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
lnsurance;
(c) Household contents, except personal
property in apartments or rooms
furnished by you as landlord;
(d) Manuscripts;and
(e) Works of art, antiques or rare articles,
including etchings, pictures, statuary,
marbles, bronzes, porcelains and bric-
a-brac.
(4) Glass at the cost of replacement with safety
glazing material if required by law.
(5) Tenants' lmprovements and Betterments
at:
(a) Replacement cost if you make repairs
promptly.
(b) A proportion of your original cost if you
do not make repairs promptly. We will
determine the proportionate value as
follows:
(i) Multiply the original cost by the
number of days from the loss or
damage to the expiration of the
lease; and
(ii) Divide the amount determined in (i)
above by the number of days from
the installation of improvements to
the expiration of the lease.
lf your lease contains a renewal option,
the expiration of the renewal option
period will replace the expiration of the
lease in this procedure.
(c| Nothing if others pay for repairs or
replacement.
(6) Applicable only to the Money and
Securities and Employee Dishonesty
Additional Coverages:
(af "Money" at its face value; and
(b) "Securities" at their value at the close
of business on the day the loss is
discovered.
(7) Applicable only to Accounts Receivable:
(a) lf you cannot accurately establish the
amount of accounts receivable
outstanding as of the time of loss or
damage:
(i) We will determine the total of the
average monthly amounts of
accounts receivable for the 12
months immediately Preceding the
month in which the loss or damage
occurs; and
(ii) We will adjust that total for any
normal fluctuations in the amountof accounts receivable for the
month in which the loss or damage
occurred or for any demonstrated
variance from the average for that
month.
(b) The following will be deducted from the
total amount of accounts receivable,
however that amount is established:
(i) The amount of the accounts for
which there is no loss or damage;
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(ii) The amount of the accounts that
you are able to reestablish or
collect;
(iii)An amount to allow for probabte
bad debts that you are normally
unable to collect; and
(iv) All unearned interest and service
charges.
e. Our payment for loss of or damage to personal
property of olhers 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 lhan you. lf 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 the sworn proof of
loss, provided you have complied with all of the
terms of this policy; and
(1) We have reached agreement with you on
the amount of loss; or
(2) An appraisalaward has been made,
h. A party wall is a wall that separates and is
common to adjoining buildings that are owned
by different parties. ln setfling covered losses
involving a party wall, we will pay a proportion
of the loss to the party wall based on your
interest in the wall in proportion to the interest
of the owner of the adjoining building. However,
if you elect to repair or replace your building
and the owner of the adjoining building elects
not to repair or replace that building, we will pay
you the full value of the loss to the party wali,
subject to all applicable policy provisions
including Limits of lnsurance and all other
provisions of this Loss Payment Condition. Our
payment under the provisions of ihis paragraph
does nol alter any right of subrogalion we may
have againet any €ntity, including the owner or
ineurer of the adjoining building, and doee not
alter the terms of the Transfer Of Rights Of
Recovery Against Others To Us Condition in
this policy.
7. Paragraph G. Optional Coverages in Section I -Property is deleted in its entirety.
8. OTHER INSURANCE UNDER THE SAME
POLICY
lf there ls other insurance under this policy covering
the same lo$s or damage, we will pay only for thi
amount of eovered loss or damage in
'exceis
of the
sum of:
a. The amount that such other insurance paid for
the loss or damage; and
b. The amount of the deductible applicable to the
loss or damage under the other insurance.
However, we will not pay more than the applicable
Limit of lnsurance.
9. The following is added to Paragraph H. Property
Definitions.
'Fine Arts" means paintings, etchings, pictures,
tapestries, rare or 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. "Antique" means an object having
value because its craftsmanship is in the style or
fashion of former times and its age is 100 years or
older.
10. Additional lnsured - Building Owner
The following is added to Section I - property.
lf you are a building owner(s), you are an insured,
but only with respect to the coverage provided
under lhis Policy for direct physical loss or damage
to the building(s) described in the Declarations and
owned by you. Allother policy terms and conditions
apply.
1 1. Blanket Additional lnsured
The following changes revise Section ll - Liability.
Paragraph C. Who ls An lnsurod is amended to
include the following:
1. Blanket Additional lnsured
a. Any person or organization when you and
such person or organization have agreed inwriting in a contract or agreement,
executed prior to any ',occurrence,', 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 liabillty for
"bodily injury", ,,property damage'i or
"personal and advertising injury', caused, in
whole or in part, by:
(1) Your acts or omission; or
(2) The acts or omissions of those acting
on your behalf;
ln the performance of your ongoing
operations for the additional insured, br in
connection with your premises owned by or
rented to you.
A person's or organization,s status as an
additional insured under this endorsement
ends when your contract or agreement with
such person or organization ends.
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(b) The Limits of lnsurance applicable to the
Additional insured are those specified in the
written contract or agreement but not more than
the Limits of lnsurance specified in the
Declarations of this policy. The Limits of
lnsurance applicable to the Additional lnsured
are inclusive of and not in addition to the Limits
of lnsurance shown in the declarations for the
Named lnsured.
All other policy tenns and conditions apply.
The following changes revise Section lll - Common
Policy Gonditions,
Paragraph H. Other lngurance is amended to add the
following subparagraph:
4. Other lnsurance As Excesc lnsurance
To the extent required by an "insured contracf', this
insurance is primary on behalf of the additional
insured, and any other insurance maintained by the
additional insured is excess and not contributory
with thie insurance. lf the "insured contract" does
not require this provision, then Paragraph 1. above
willapply.
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