Loading...
HomeMy WebLinkAboutCAG2020-138 - Original - West Hill Transmission Main - 05/14/2020ApprovalOriginator:Department: Date Sent:Date Required: Authorized to Sign: o Director or Designee o Mayor Date of Council Approval: Budget Account Number: Budget? o Yes o No Grant? o Yes o No Type:Review/Signatures/RoutingDate Received by City Attorney:Comments: Date Routed to the Mayor’s Office: Date Routed to the City Clerk’s Office:Agreement InformationVendor Name:Category: Vendor Number:Sub-Category: Project Name: Project Details: Agreement Amount: Start Date: Basis for Selection of Contractor: Termination Date: Local Business? o Yes o No* *If meets requirements per KCC 3.70.100, please complete “Vendor Purchase-Local Exceptions” form on Cityspace. Notice required prior to disclosure? o Yes o No Contract Number: 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) Visit Documents.KentWA.gov to obtain copies of all agreementsadccW22373_1_20 PROFESSIONAL SERVICES AGREEMENT - 1 ($20,000 or Less) PROFESSIONAL SERVICES AGREEMENT between the City of Kent and Integra Washington, Inc. THIS AGREEMENT is made between the City of Kent, a Washington municipal corporation (hereinafter the "City"), and Integra Washington, Inc. organized under the laws of the State of Washington, located and doing business at 600 University St., Suite 310, Seattle, WA 98101, Phone: (206) 903-6700, Contact: Lori Safer (hereinafter the "Contractor"). I. DESCRIPTION OF WORK. Contractor shall perform the following services for the City: The Contractor shall provide valuation services for the West Hill Transmission Main Project - SPU property. For a description, see the Contractor's Scope of Work which is attached as Exhibit A and incorporated by this reference. Contractor further represents that the services furnished under this Agreement will be performed in accordance with generally accepted professional practices within the Puget Sound region in effect at the time those services are performed. II. TIME OF COMPLETION. The parties agree that work will begin on the tasks described in Section I above immediately upon the effective date of this Agreement, and Contractor shall complete the work by April 27, 2021. III. COMPENSATION. The City shall pay Contractor a total amount not to exceed Four Thousand, Five Hundred Dollars ($4,500) for the services described in this Agreement. The Contractor shall invoice the City monthly based on time and materials incurred during the preceding month. The hourly rates charged for Contractor’s services shall be as delineated in the attached and incorporated Exhibit A. All hourly rates charged shall remain locked at the negotiated rates throughout the term of this Agreement. IV. INDEPENDENT CONTRACTOR. The parties intend that an Independent Contractor- Employer Relationship will be created by this Agreement. By their execution of this Agreement, and in accordance with Ch. 51.08 RCW, the parties make the following representations: A. The Contractor has the ability to control and direct the performance and details of its work, the City being interested only in the results obtained under this Agreement. B. The Contractor maintains and pays for its own place of business from which Contractor’s services under this Agreement will be performed. C. The Contractor has an established and independent business that is eligible for a business deduction for federal income tax purposes that existed before the City retained Contractor’s services, or the Contractor is engaged in an independently established trade, occupation, profession, or business of the same nature as that involved under this Agreement. D. The Contractor is responsible for filing as they become due all necessary tax documents with appropriate federal and state agencies, including the Internal Revenue Service and the state Department of Revenue. PROFESSIONAL SERVICES AGREEMENT - 2 ($20,000 or Less) E. The Contractor has registered its business and established an account with the state Department of Revenue and other state agencies as may be required by Contractor’s business, and has obtained a Unified Business Identifier (UBI) number from the State of Washington. F. The Contractor maintains a set of books dedicated to the expenses and earnings of its business. V. TERMINATION. Either party may terminate this Agreement, with or without cause, upon providing the other party seven (7) calendar days written notice at its address set forth on the signature block of this Agreement. VI. DISCRIMINATION. In the hiring of employees for the performance of work under this Agreement or any subcontract, the Contractor, its subcontractors, or any person acting on behalf of the Contractor or subcontractor shall not discriminate against any person who is qualified and available to perform the work to which the employment relates as provided for by the City of Kent’s Equal Employment Opportunity Policy. Contractor shall execute the attached City of Kent Equal Employment Opportunity Policy Declaration, Comply with City Administrative Policy 1.2, and upon completion of the contract work, file the attached Compliance Statement. VII. INDEMNIFICATION. Contractor shall defend, indemnify and hold the City, its officers, officials, employees, agents and volunteers harmless from any and all claims, injuries, damages, losses or suits, including all legal costs and attorney fees, arising out of or in connection with the Contractor's performance of this Agreement, except for that portion of the injuries and damages caused by the City's negligence. The City's inspection or acceptance of any of Contractor's work when completed shall not be grounds to avoid any of these covenants of indemnification. The provisions of this section shall survive the expiration or termination of this Agreement. In the event Contractor refuses tender of defense in any suit or any claim, if that tender was made pursuant to this indemnification clause, and if that refusal is subsequently determined by a court having jurisdiction (or other agreed tribunal) to have been a wrongful refusal on the Contractor’s part, then Contractor shall pay all the City’s costs for defense, including all reasonable expert witness fees and reasonable attorneys’ fees, plus the City’s legal costs and fees incurred because there was a wrongful refusal on the Contractor’s part. VIII. INSURANCE. The Contractor shall procure and maintain for the duration of the Agreement, insurance of the types and in the amounts described in Exhibit B attached and incorporated by this reference. IX. CONTRACTOR’S WORK AND RISK. The Contractor agrees to comply with all federal, state, and municipal laws, rules, and regulations that are now effective or in the future become applicable to Contractor’s business, equipment, and personnel engaged in operations covered by this Agreement or accruing out of the performance of those services. All work shall be done at Contractor's own risk, and Contractor shall be responsible for any loss of or damage to materials, tools, or other articles used or held for use in connection with the work. X. MISCELLANEOUS PROVISIONS. A. Recyclable Materials. Pursuant to Chapter 3.80 of the Kent City Code, the City requires its contractors and consultants to use recycled and recyclable products whenever practicable. A price preference may be available for any designated recycled product. B. Non-Waiver of Breach. The failure of the City to insist upon strict performance of any of the covenants and agreements contained in this Agreement, or to exercise any option conferred by this Agreement in one or more instances shall not be construed to be a waiver or relinquishment of those covenants, agreements or options, and the same shall be and remain in full force and effect. C. Resolution of Disputes and Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Washington. If the parties are unable to settle any PROFESSIONAL SERVICES AGREEMENT - 3 ($20,000 or Less) dispute, difference or claim arising from the parties’ performance of this Agreement, the exclusive means of resolving that dispute, difference or claim, shall only be by filing suit exclusively under the venue, rules and jurisdiction of the King County Superior Court, King County, Washington, unless the parties agree in writing to an alternative dispute resolution process. In any claim or lawsuit for damages arising from the parties' performance of this Agreement, each party shall pay all its legal costs and attorney's fees incurred in defending or bringing such claim or lawsuit, including all appeals, in addition to any other recovery or award provided by law; provided, however, nothing in this paragraph shall be construed to limit the City's right to indemnification under Section VII of this Agreement. D. Written Notice. All communications regarding this Agreement shall be sent to the parties at the addresses listed on the signature page of the Agreement, unless notified to the contrary. Any written notice hereunder shall become effective three (3) business days after the date of mailing by registered or certified mail, and shall be deemed sufficiently given if sent to the addressee at the address stated in this Agreement or such other address as may be hereafter specified in writing. E. Assignment. Any assignment of this Agreement by either party without the written consent of the non-assigning party shall be void. F. Modification. No waiver, alteration, or modification of any of the provisions of this Agreement shall be binding unless in writing and signed by a duly authorized representative of the City and Contractor. G. Entire Agreement. The written provisions and terms of this Agreement, together with any Exhibits attached hereto, shall supersede all prior verbal statements of any officer or other representative of the City, and such statements shall not be effective or be construed as entering into or forming a part of or altering in any manner this Agreement. Should any language in any of the exhibits to this Agreement conflict with any language contained in this Agreement, the terms of this Agreement shall prevail. H. Public Records Act. The Contractor acknowledges that the City is a public agency subject to the Public Records Act codified in Chapter 42.56 of the Revised Code of Washington and documents, notes, emails, and other records prepared or gathered by the Contractor in its performance of this Agreement may be subject to public review and disclosure, even if those records are not produced to or possessed by the City of Kent. As such, the Contractor agrees to cooperate fully with the City in satisfying the City’s duties and obligations under the Public Records Act. I. City Business License Required. Prior to commencing the tasks described in Section I, Contractor agrees to provide proof of a current city of Kent business license pursuant to Chapter 5.01 of the Kent City Code. / / / / / / / / / / / / / / / / Digitally signed by Carla Maloney DN: cn=Carla Maloney, o=City of Kent, ou=Public Works Engineering, email=cmaloney@kentwa.gov, c=US Date: 2020.05.14 14:23:19 -07'00' 5-14-2020 EEO COMPLIANCE DOCUMENTS - 1 / DECLARATION CITY OF KENT EQUAL EM PLOYM ENT OPPORTUNITY POLICY The City of Kent is committed to c onform to Federal and State laws rega rding equal opportunity . As such all contractors, subcontractors and suppliers who perform work with relation to this Agreement shall comply with the regulations of the City's equal employment opportunity policies. The following questions specifically identify the requirements the City deems necessary for any contractor, subcontractor or supplier on this specific Agreement to adhere to. An affirmative response is required on all of the following questions for this Agreement to be valid and binding. If any contractor, subcontractor or supplier willfully misrepresents themselves with regard to the directives outli nes, it will be considered a breach of contract and it will be at the City's sole determination regarding suspension or termination for all or part of the Agreement; The questions are as follows: 1. Ihave read the attached City of Kent admi nistrative policy number 1.2. 2. During the time of this Agreement Iwill not discrimi nate in employment on the basis of sex, race, color, national origin, age, or the presence of all sensory, mental or physical disability. 3. During the time of this Agreement the prime contractor will provide a written statement to all new employees and subcontractors indicating commitment as an equal opportunity employer. 4. During the time of the AgreementI, the prime contractor, w ill actively consider hiring and promotion of women and minorities. 5. Before acceptance of this Agreement, an adherence statement will be signed by me, the Prime Contractor, that the Prime Contractor complied with the requirements as set forth above. By signing below, Iagree to fulfill the five requirements referenced above. , 20--.@ Dated this day of EEO COMPLIANCE DOCUMENTS - 2 CITY OF KENT ADMINISTRATIVE POLICY NUMBER: 1.2 EFFECTIVE DATE: January 1, 1998 SUBJECT: MINORITY AND WOMEN SUPERSEDES: April 1, 1996 POLICY: CONTRACTORS APPROVED BY Jim White, Mayor Equal employment opportunity requirements for the City of Kent will conform to federal and state laws. All contractors, subcontractors, consultants and suppliers of the City must guarantee equal employment opportunity within their organization and, if holding Agreements with the City amounting to $10,000 or more within any given year, must take the following affirmative steps: 1. Provide a written statement to all new employees and subcontractors indicating commitment as an equal opportunity employer. 2. Actively consider for promotion and advancement available minorities and women. Any contractor, subcontractor, consultant or supplier who willfully disregards the City’s nondiscrimination and equal opportunity requirements shall be considered in breach of contract and subject to suspension or termination for all or part of the Agreement. Contract Compliance Officers will be appointed by the Directors of Planning, Parks, and Public Works Departments to assume the following duties for their respective departments. 1. Ensuring that contractors, subcontractors, consultants, and suppliers subject to these regulations are familiar with the regulations and the City’s equal employment opportunity policy. 2. Monitoring to assure adherence to federal, state and local laws, policies and guidelines. EEO COMPLIANCE DOCUMENTS - 3 CITY OF KENT EQUAL EMPLOYMENT OPPORTUNITY COMPLIANCE STATEMENT This form shall be filled out AFTER COMPLETION of this project by the Contractor awarded the Agreement. I, the undersigned, a duly represented agent of Company, hereby acknowledge and declare that the before-mentioned company was the prime contractor for the Agreement known as that was entered into on the (date), between the firm I represent and the City of Kent. I declare that I complied fully with all of the requirements and obligations as outlined in the City of Kent Administrative Policy 1.2 and the Declaration City of Kent Equal Employment Opportunity Policy that was part of the before-mentioned Agreement. Dated this day of , 20 . By: For: Title: Date: Exhibit A lntegra Realty Resources Seattle 600 University Street Suite 310 Seattle, WA 98101 T 206.903 .6700 F 206.623.5731 www. irr.com April 27, 2020 Cheryl Rolcik-Wilcox Property & Acquisition Analyst Public Works Engineering City of Kent 220 Fourth Avenue South Kent, WA 98032 SUBJECT : Proposal for Valuation Services SPU Property 23056 Military Road South, Kent, King County, WA 98032 SPU Access and Utility Easement Dear Ms. Rolcik-Wilcox : lntegra Realty Resources - Seattle appreciates the opportunity to provide this proposal for valuation services to the undersigned (the "Client") for the above-captioned property. The purpose of the appraisal is to provide an opinion of the market value ofthe before and after fee simple interest in the Subject Property for an access and utility easement. The intended use of the appraisal is for eminent domain purposes. Two after value conclusions will be included in the appraisal to reflect two different easement options. The appraisal will be prepared in conformance with and subject to, the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute and the Uniform Standards of Professional A p praisal Practice (USPAP) developed by the Appraisal Standards Board of the Appraisal Foundation. It is our understanding that the appraisal may be used in litigation. 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 not performed any 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 acceptance of this assignment. p City of Kent April 27, 2020 Page 2 In 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 appraisal will be communicated in an Summary I Standard Format, suitable for litigation. The total fee for this assignment will be $4,500 inclusive of expenses. The report(s) will be completed and delivered to you within 30 days from authorization to proceed. An electronic copy of the report (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 including litigation work 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. Hourly Rates Job Title Hourly Rate Executive Director Senior Managing Director/Managing Director Senior Analyst Analyst Researcher Production Support $350/hour $325/hour $200 to $250/hour $150/hour $90/hour $60/hour The appraisal reports 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 of the assignment. A copy of the standard Assumptions and Limiting Conditions is set forth in Attachment I. Sincerely, INTE EALTY RESOURCES -SEATTLE ifP< -- Lori Safer, MAI,Al-GRS Managing Director Attachments City of Kent April 27, 2020 Page 3 ATTACHM ENT I STANDARD ASSUMPTIONS & LIMITING CONDITIONS The appraisal report and any work product 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. There are no existing judgments or pending or threatened litigation that could affect the value of 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 report: 1. An appraisal is inherently subjective and represents our opinion as to the value of the Subject Property appraised. 2. The conclusions stated in our appraisal apply only as of the effective date of the appraisal, and no 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 Internal 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. If 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 otherwise 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 April 27, 2020 Page 4 the Subject Property 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 subsurface 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 considerations 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 distribution of the total valuation in the report between land and improvements applies only under the reported highest and best use of the Subject 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. The appraisal report shall be considered only in its entirety. No part of the appraisal 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 Institute) 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 consent of the persons signing the report. 11. Information, 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. If the Subject Property is subject to one or more leases, any estimate of residual value contained in the appraisal may be particularly affected by significant changes in the condition of the economy, of the real estate industry, or of the Subject Property at the time these 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 moving or relocating such personal property; only the real property has been considered. 15. The current purchasing power of the dollar 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 contained in the report necessarily incorporate numerous estimates and assumptions regarding property performance, general and local business and economic City of Kent April 27, 2020 Page 5 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, 1992 . 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. Inasmuch 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 owner'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 for the exclusive benefit of you, your subsidiaries and/or affiliates. It 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 warranties are made regarding the environmental condition of the Subject Property. 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, Inc. ("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 exclusive responsibility of IRR - Seattle. In 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 April 27, 2020 Page 6 related work product, the lntegra Parties shall not be responsible or liable for any incidental or consequential damages or losses, unless the appraisal was fraudulent or prepared with intentional misconduct. It 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 fraudulent or prepared with intentional misconduct). It is expressly agreed that the fees 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 use and benefit unless we provide our prior written 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 if their 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 Inc. are not responsible for these and other future occurrences that 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 occur that 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 of the 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. In addition to the contingencies noted in the preceding paragraph, several events may occur that could 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. It is assumed that conditions reasonably foreseeable at the present time are consistent or similar with the future. As will be determined during the course of the assignment, additional extraordinary or hypothetical conditions may be required in order to complete the assignment . The appraisal shall also be subject to those assumptions. EXHIBIT B INSURANCE REQUIREMENTS FOR CONSULTANT SERVICES AGREEMENTS Insurance The Consultant shall procure and maintain for the duration of the Agreement, insurance against claims for injuries to persons or damage to property which may arise from or in connection with the performance of the work hereunder by the Consultant, their agents, representatives, employees or subcontractors. A. Minimum Scope of Insurance Consultant shall obtain insurance of the types described below: 1. Automobile Liability insurance covering all owned, non-owned, hired and leased vehicles. Coverage shall be written on Insurance Services Office (ISO) form CA 00 01 or a substitute form providing equivalent liability coverage. If necessary, the policy shall be endorsed to provide contractual liability coverage. 2. Commercial General Liability insurance shall be written on ISO occurrence form CG 00 01 and shall cover liability arising from premises, operations, independent contractors, products-completed operations, personal injury and advertising injury, and liability assumed under an insured contract. The City shall be named as an insured under the Consultant’s Commercial General Liability insurance policy with respect to the work performed for the City using ISO additional insured endorsement CG 20 10 11 85 or a substitute endorsement providing equivalent coverage. 3. Workers’ Compensation coverage as required by the Industrial Insurance laws of the State of Washington. 4. Professional Liability insurance appropriate to the Consultant’s profession. B. Minimum Amounts of Insurance Consultant shall maintain the following insurance limits: 1. Automobile Liability insurance with a minimum combined single limit for bodily injury and property damage of $1,000,000 per accident. 2. Commercial General Liability insurance shall be written with limits no less than $1,000,000 each occurrence, $2,000,000 general aggregate and a $1,000,000 products-completed operations aggregate limit. EXHIBIT B (Continued) 3. Professional Liability insurance shall be written with limits no less than $1,000,000 per claim and $1,000,000 policy aggregate limit. C. Other Insurance Provisions The insurance policies are to contain, or be endorsed to contain, the following provisions for Automobile Liability and Commercial General Liability insurance: 1. The Consultant’s insurance coverage shall be primary insurance as respect the City. Any Insurance, self-insurance, or insurance pool coverage maintained by the City shall be excess of the Consultant’s insurance and shall not contribute with it. 2. The Consultant’s insurance shall be endorsed to state that coverage shall not be cancelled by either party, except after thirty (30) days prior written notice by certified mail, return receipt requested, has been given to the City. 3. The City of Kent shall be named as an additional insured on all policies (except Professional Liability) as respects work performed by or on behalf of the Consultant and a copy of the endorsement naming the City as additional insured shall be attached to the Certificate of Insurance. The City reserves the right to receive a certified copy of all required insurance policies. The Consultant’s Commercial General Liability insurance shall also contain a clause stating that coverage shall apply separately to each insured against whom claim is made or suit is brought, except with respects to the limits of the insurer’s liability. D. Acceptability of Insurers Insurance is to be placed with insurers with a current A.M. Best rating of not less than A:VII. E. Verification of Coverage Consultant shall furnish the City with original certificates and a copy of the amendatory endorsements, including but not necessarily limited to the additional insured endorsement, evidencing the insurance requirements of the Contractor before commencement of the work. F. Subcontractors Consultant shall include all subcontractors as insureds under its policies or shall furnish separate certificates and endorsements for each subcontractor. All coverages for subcontractors shall be subject to all of the same insurance requirements as stated herein for the Consultant. 02/19/2020 INSn l wun MM/OD/YYYYI -x r,, ? i1 1?f\MAGE $ OFF'IC lM ·MOER EXCLUDCD? NIA H .ACOR De CERTIFICATE OF LIABILITY INSURANCE I DATE (MMIDDIYYYYI THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER. IMPORTANT: If the certificate holder Is an ADDI TIONAL INSURED, the policy(les) must have ADDITIONAL INSURED provisions or be endorsed . If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder In lieu of such endorsement(s). COVERAGES C ERTIF ICATE NUMB ER : 20-21 REVIS ION NUMBER: THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS . 'L'TR TYPE OF INSURANCE "UU L[:>ITOH POLICY NUMBER 1MMi'DDiv "n-1 IeuLn.. oAe LIMITS -x COMMER C IAL GENERAL LIABILITY EACH OCCURRENCE s 2,000,000 -:J C LA IMS-MADE [8J OCCUK M;s e ".,';; ...., $ 100,000 ,._ A ,._ y BOP0001383 0311412020 03/14/2021 MED EXP IAnv one oeisonl s 10,000 PERSONAL & ADV INJURY $ L A GG HEDL .APP[ f R GENERAL AGGREGAT E $ 4,000,000 F'OLICV Jr.er LOC PRODUC IS - COMPIOP AGG $ 2,000,000 0111i,i $ AUTOMOBILE LIABILITY COMlllNED SINOLE UMIf $ 2,000,000 - iEn acd<lorul - ANY AUTO BODILY INJURY (Per petson) $ A ,._ OWNED SCCIF11UI ED BOP0001383 03/14/2020 03114/202 ·1 BOOILY INJURY (Per accldenl) $ AUTOS ONLY AUTOS HIRED NON·OWNED A UTOS ONLY AUTOS ONLY $ x UMBRELLA LIAB , OCCUR EACH OCCURRENCE $ 1,000,000 A EXCESS LIAB CLAIMS-MADE UMC0000555 03/14/2020 03/14/2021 AGGRF.GArE s 1,000,000 DED I I RETENTION $ s WORKERS COMPENSATION 1 mUTE IXl H· WA Stop Gap ANO EMPlOYER6' LIABILITY Y / N A ANY PROPRIETOfi/f'ARTNER/(XECUTIVE D BOP0001383 03/1412020 03114/2021 E.L. t:ACH /\CCIDENT $ 2,000,000 I·••nd•lol')' In NII) E.L. DISEASE - EA EMPI OYEE $ 2,000,000 If yes , describe under DESCRIPTION OF OPERATIONS b•low E.L LJISEASE ·POLICY LIMIT DESCRIPTION OF OPERATIONS I LOCATIONS I VEHICLES (ACORD 101,Additional Remarks Schedule , may he altached If more space Is required) City of Kent is an additional insured. Forms; # EB9901 1219 Businessowners Enhancement Endorsement wilh Blanket Additional Insured; #BP1488 0713 Primary and Noncontributory - Other Insurance Condi(ion, CERTIFI C ATE HOLDER CANCELLATION SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFOR E THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN City of Kent ACCORDANCE WITH THE POLICY PROVISIONS . 220 Fourth Avenue South AUTHORIZED REPRESENTATIVE Kent WA 98032 {law;_Gxf . © 1988-2015 ACORD CORPORATION. All rights reserved. ACORD 25 (2016/0J) The ACORD name and logo are registered marks of ACORD s 2,000,000 a d I PRODUCER Conover Insurance 155 108th Avenue NE, Suite 725 P.O. Box 90007 Bellevue WA 96004 CONTACT NAME: Carrie Ovrid rA NJ.Extl: (425) 455-5000 I rUc Nol' (425) 454-5550 oOriess : carrieo@conoverinsurance.com INSURER(S) AFFORDING COVERAGE NAIC # INSURER A : Mutual of Enumclaw Insurance Company 14761 INSURED INTEGRA WASHINGTON INC 600 UNIVERSITY ST STE 310 SEATILE WA 98101 INSlJR.ER B : INSURER C : INSURER D : INSURER E : INSURER F : - $ -I- Pf(EMISE§ !Ea CWJ<!!l!l9§L_ $ =i CLAIMS-MADE DOCCUR i1!'TC cN ltU - - - OWNED SCHEDULED $ AUTOS ONLY $ D N / A I fTllTF I M... - A CORD® CERTI FICATE OF LIABILITY INSURANCE I DATE (MM/DD/YYYY) 212612020 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW . THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER. IMPORTANT : If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must have ADDITIONAL INSURED provisions or be endorsed. If SUBROGATI ON IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer riahts to the certificate holder In lieu of such endorsement(s). 1 PRODUCER 2 c Arthur J. Gallagher & Co . LAReat Estat eCe rts@. .com Insurance Brokers of CA. Inc LIC#0726293 - ll ll"" 818-539-1247 Iff.* .._ .. a rn-s30. 1a04 505 N. Brand Boulevard, Suite 600 1t-A . LARealEstateCert.@. g.com Glendale CA 91203 INSURERISl AFFORDING COVERAGE NAIC # INSURER A i Underwriters at Llovd's London 11230 INSURED INTEREA--03 INSURER B : lntegra Washinto n, Inc . --- 600 University treat #310 INSURER C : Seattle, WA 98101 INSURER D : INSURER E : INSURER F : COVERAGES CERTIFICATE NUMBER· 66007039 REVISION NUMBER· THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. lf: TYPE OF INSURANCE ll"ffi SUllfl · 11.1Qn 1an'n POLICY NUMBER . Ml'vWv , .m- 9.l'vWv, LIMITS -DCOMMERCIAL GENERAL LIABILITY EACH OCCURRENCE $ MED EXP IAnv one oersonl $ PERSONAL & ADV INJURY $ GEN'L AGGREGATE LIMIT APPLIES PER: GENERAL AGGREGATE POLICY D e8r D Loc PRODUCTS· COMP/OP AGG $ OTHER $ AUTOMOBILE LIABILITY =-·lNOLE LIMlr $ ANY AUTO BODILY INJURY (Per person) $ - AUTOS ONLY -AUTOS BODILY INJURY (Per accidenl) $ --- HIRED -AUTOS ONLY - UMBRELLA LIAB NON-OWNED Je ? ..RllMAG <: r-1 OCCUR EACH OCCURRENCE $ EXCESS LIAB CLAIMS-MADE AGGREGATE $ OED I IRETENTION $ $ WORKERS COMPENSATION I gr"· A NO EMPLOYER S' UA011TY Y IN ANYf'R(JPRI HOR/PARTNER/EXECUTIVE E.L EACH ACCIDENT $ OFFICERIMEMREREXCLUOEO? (Mondolory hi NHI EL DISEASE - EA EMPLOYEE s Ir yes, describe under DESCRIPTION OF OPERAT IONS below El, DISEASE - POLICY LIMIT $ A Erroni & Omiulons MPL1531199.20 3/14/2020 3/14/2022 Each Claim $2,000,000 A Erroro & Oml,.I011• MPL1542399.20 3/14/2020 3/14/2022 Agr•o Lim.I $10,000,000 A •E&O Deduclible Reimbursomenl PRFDR 46·APP20 3D692-201 3/14/2020 3/1412022 Ee la Aggrogal e" $150,00 0 l!IESCR IPTION O F OPERATI O NS / OCATIONS I V EHIClES tA CORD 101, Ad dlllono l Romuk1 Sc ho dulo,ma bo •llochod IImoto o pnco i• required) Locallon:600 Unlv ersi y Stree t , Ste 310, Seattle, WA 98101 Evidence only. ·Polley Is subject to $25,000 Self Insured Renlenllon/Ded ucllllle pay able by local office . This certificat e or nsurance ts not a policYt of Insurance a nd does not affir matively or negatively amend, ex tend or a Iler the cov erage affor ded by he policy to which t he cer1i0cate of insurance makes refere nce. CERTIFICATE HOLDER CANCELLATION SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN Ci of Kent ACCORDANCE WITH THE POLICY PROVISIONS. 22 Fourth Avenue Kent WA 98032 AUTHORIZED REPRESENTATIVE USA I ACORD 25 (2016/03) © 1988-2015 ACORD CORPORATION. All rights reserved. The ACORD name and logo are registered marks of ACORD - BUSINESSOWNERS BP 14 88 07 13 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. PRIMARY AND NONCONTRIBUTORY - OTHER INSURANCE CONDITION This endorsement modifies insurance provided under the following: BUSINESSOWNERS COVERAGE FORM The following is added to Paragraph H. Other Insurance of Section Ill - Common Policy Conditions and supersedes any provision to the contrary : Primary And Noncontributory Insurance This insurance is primary to and will not seek contribution from any other insurance available to an additional insured under your policy provided that: 1. The additional insured is a Named Insured under such other insurance; and 2. You have agreed in writing in a contract or agreement that this insurance would be primary and would not seek contribution from any other insurance available to the additional insured. BP 14 88 07 13 © Insurance Services Office, Inc., 2012 Page 1 of 1 BUSINESSOWNERS EB 99 01 12 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 Coverages and Limits shown below are subject to the terms and conditions found In the remainder of this Endorsement.) 1. Covered Property Schedule Signs attached to buildings and business personal property. 2. Additional Coverages a. Debris Removal b. Preservation of Property c. Fire Department Service Charge d. Collapse e. Water Damage, Other Liquids, Powder Or Molten Material Damage f. Business Income g. Extra Expense h. Pollutant Clean-Up And Removal i. Civil Authority j. Money Orders And "Counterfeit Money" k. Employee Dishonesty I. Forgery Or Alteration m. Ordinance Or Law Coverage - Blanket - Coverages 1, 2 and 3 n. Business Income From Dependent Properties o. Glass Expenses p. Fire Extinguisher Systems Recharge Expense q. Electronic Data r. Interruption Of Computer Operations s. Limited Coverage For "Fungi", Wet Rot Or Dry Rot t. Lock And Key Replacement u. Utility Services v. Reward Payment w. Inventory And Loss Adjustment Expense x. Back-Up of Sewers, Drains or Sumps y. Money and Securities z. Fine Arts aa. Voluntary Parting 3. Coverage Extensions a. Newly Acquired Or Constructed Property Buildings Business Personal Property b. Personal Property Off-Premises Including Transportation c. Outdoor Property d. Personal Effects And Property Of Others e. Valuable Papers and Records f. Accounts Receivable g. Detached Signs h. Business Personal Property Temporarily In Portable Storage Units 4. Limits Of Insurance 5. Deductibles 6. Loss Payment 7. Optional Coverages B. Other Insurance Condition 9. Definitions 10. Addi tional Insured - Building Owner 11. Blanket Additi onal Insured Limits of Insurance $25,000 60 days $15,000 Refer to Page 3 Refer to Page 4 Actual Loss Sustained Actual Loss Sustained $15,000 4 weeksn2 hr. deductible $5,000 $15,000 $15,000 $100,000 $10,000 Refer to Page 9 $10,000 $25, 000 $25,000 $15,000 $2,500 $10,000 $10,000 $5,000 $25,000 $10,000 lnside/$2,000 Outside $10,000 $10,000 $500,000 $250,000 $25,000 $10,000/$1,000 per tree, shrub or plant $2,500 per person/$10,000 maximum $25,000 On Premises/$5,000 Off Premises $25,000 On Premises/$5,000 Off Premises $10,000 $10,000 EB 99 0112 19 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 1 of 20 Page 2 of 20 EB 99 01 12 19 Includes copyrighted material of Insurance Services Office, Inc. with its permission The proximity limitation found anywhere within the Businessowners Policy is amended from "within 100 feet" of the described premises, to "withi n 1,000 feet" of the described premises. 1. The following is added to Paragraph A.1.• Covered Insurance applicable to the Covered Property in Section I - Property of the Property that has sustained loss or Businessowners Coverage Form. damage. a. Buildings (b) Subject to Paragraph (3)(a) above, the (7) Signs attached to buildings. amount we will pay for debris removal expense is limited to 25% of the sum of b. Business Personal Property (6) Signs attached to buildings . 2. Paragraph 5. Additional Coverages in Section I - Property is deleted in its entirety and replaced by the following: a. Debris Removal (1) 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 responsibility to insure such property and it is insured under this policy; (c) Remove any property that is Property Not Covered, including property addressed under the 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 deductible plus the amount that we pay for direct physical loss or damage to the Covered Property that has sustained loss or damage. However , if no Covered Property has sustained direct physical loss or damage, the most we will pay for removal of debris of other property (if such removal is covered under this Additional Coverage) is $5,000 at each location. (4) We will pay up to an additional $25 ,000, 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 Insurance on the Covered Property that has sustained loss or damage. (b) The actual debris removal expense exceeds 25% of the sum of the deductible plus the amount that we pay for direct physical loss or damage to the Covered Property that has sustained loss or damage. Therefore, if Paragraphs (4)(a) and/or (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 Insurance on the Covered Property that has sustained loss or damage, plus $25,000. the grounds of the described premises; b. Preservation of Property (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 If it is necessary to move Covered Property from the described premises to preserve it from loss or damage by a Covered Cause of Loss, we will pay for any direct physical loss of or damage to that property: (1) While it is being moved or while temporarily stored at another location; and (2) Only if the loss or damage occurs within 60 days after the property is first moved. Page 3 of 20 EB 99 01 12 19 Includes copyrighted material of Insurance Services Office, Inc. with its permission c. Fire Department Service Charge When the fire department is called to save or protect Covered Property from a Covered Cause of Loss, we will pay up to $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. Collapse 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, caused by abrupt collapse of a building or any part of a building that is insured under this policy or that contains Covered Property insured under this policy, if such collapse is caused by one or more of the following: (a) Building decay that is hidden from view, unless the presence of such decay is known to an insured prior to collapse; (b) Insect or vermin damage that is hidden from view, unless the presence of such damage is known to an insured prior to collapse; (c) Use of defective material or methods in construction, remodeling or renovation if the abrupt collapse occurs during the course of the constructi on, remodeling or renovation; (d) Use of defective material or methods in construction, remodeling or renovation if the abrupt collapse occurs after the construction, remodeling or renovation is complete, but only if the collapse is caused in part by: (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 property; or (v) Weight of rain that collects on a roof. (3) This Additional Coverage - Collapse does not apply to: (a) A building or any part of a building that is in danger of falling down or caving in; (b) A part of a building that is standing, even if it has separated from another part of the building; or (c) A building that is standing or any part of a building that is standing, even if it shows evidence of cracking, bulging, sagging, bending, leaning, settling, shrinkage or expansion. (4) With respect to the following property: (a) Awnings; (b) Gutters and downspouts; (c) Yard fixtures; (d) Outdoor swimming pools; (e) Piers, wharves and docks; (f) Beach or diving platforms or 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 th is policy and the property is Covered Property under this policy. (6) If personal property abruptly falls down or caves in and such collapse is not the result of abrupt collapse of a building, we will pay for loss or damage to Covered Property caused by such collapse of personal property only if: (a) The collapse of personal property was caused by a cause of loss listed in Paragraphs (2)(a) through (2)(d) of this Additional Coverage; (b) The personal property which collapses is inside a building; and (c) The property which collapses is not of a kind listed in Paragraph (4), regardless of whether that kind of property is considered to be personal property or real property. Page 4 of 20 EB 99 01 12 19 Includes copyrighted material of Insurance Services Office, Inc. with its permission 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 bruritly fallAn nnwn 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 Insurance 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. Water Damage, Other Liquids, Powder Or Molten Material Damage If loss or damage caused by or resulting from covered water or other liquid, powder or molten material occurs, we will also pay the cost to tear out and replace any part of the building or structure to repair damage to the system or appliance from which the water or other substance escapes. We will not pay the cost to repair any defect that caused the loss or damage, but we will pay the cost to repair or replace damaged parts of fire extinguishing equipment if the damage: (1) Results in discharge of any substance from an automatic fire protection system; or (2) Is directly caused by freezing. f. Business Income (1) Business Income (a) We will pay for the actual loss of Business Income you sustain due to the necessary suspension of your (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 the premises described in the Declarations, whichever distance is greater (with respect to loss of or damage to personal property in the open or personal property in a vehicle); and (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 Income that you sustain during the "period of restoration" and that occurs within 12 consecutive months, unless a revised period of indemnity 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 Income means: (i) Net Income (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 Income 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 "operations" during the "period of restoration". The suspension must be caused by direct physical loss of or damage to property at the described (ii) Continuing expenses payroll. normal incurred, operating including premises. The loss or damage must be caused by or result from a Covered Cause of Loss. With respect to loss of or damage to personal property in the open or personal property in a vehicle, the described premises include the area within 1,000 feet of such premises. With respect to the requirements set forth in the preceding paragraph, if you occupy only part of a building, your premises means: (d) Ordinary payroll expenses: (i) Means payroll expenses for all your employees except: i. Officers; ii. Executives; iii. Department Managers; iv. Employees under contract; and v. Additional Exemptions shown in the Declarations as: Page 5 of 20 EB 99 01 12 19 Includes copyrighted material of Insurance Services Office, Inc. with its permission • Job Classifications; or • Employees. (ii) ) Include: I. Payroll; II. Employee benefits, if directly related to payroll; iii. FICA Payments you pay; iv. Union dues you pay; and v. Workers' compensation premiums. (2) Extended Business Income (a) If the necessary suspension of your "operations" produces a Business Income loss payable under this policy , we will pay for the actual loss of Business Income 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 restore your "operations", with reasonable speed, to the level which would generate the Business Income amount that would have existed if no direct physical loss or damage had occurred; or Ii. 60 consecutive days after the date determined in Paragraph (a)(i) above. However, Extended Business Income does not apply to loss of Business Income 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 Income 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 in this Additional Coverage, suspension means: (a) The partial slowdown or complete cessation of your business activities; or (b) That a part or all of the described premises is rendered untenantable, if coverage for Business Income applies. (4) This Additional Coverage is not subject to the Limits of Insurance of Section I - Property. g. Extra Expense (1) 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. With respect to loss of or damage to personal property in the open or personal property in a vehicle, the described premises include the area within 1,000 feet of such premises. With respect to the requirements set forth in the preceding paragraph, if you occupy only part of a building, your premises 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 the premises described in the Declarations, whichever distance is greater (with respect to loss of or damage to personal property in the open or personal property in a vehicle); and (c) Any area within the building or at the described premises, if that area services, or is used to gain access to, the portion of the building which you rent, lease 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 tem porary locations, including relocat ion expenses, and costs to equip and operate the replacement or temporary locations. (b) To m1rnm1ze the suspension of business if you cannot continue "operations" . (c) To : (I) Repair or replace any property; or (ii) Research, replace or restore the lost information on damaged "valuable papers and records"; To the extent it reduces the amount of loss that otherwise would have been payable under this Additional Coverage or Additional Coverage f. Business Income. Page 6 of 20 EB 99 01 12 19 Includes copyrighted material of Insurance Services Office, Inc. with its permission 3) With respect to the coverage provided in this 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 Income applies. (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, after the date of direct physical loss or damage. This Additional Coverage is not subject to the Limits of Insurance of Section I - Property. h. Pollutant Clean-up And Removal We will pay your expense to extract "pollutants" from land or water at the described premises if the discharge, dispersal, seepage, migration, release or escape of the "pollutants" Is caused by or results from a Covered Cause of Loss that occurs during the policy period. The expenses will be paid only if they are reported to us in writing within 180 days of the date on which the Covered Cause of Loss occurs. This Additional Coverage does not apply to costs to test for, monitor or assess the existence, concentration or effects of "pollutants". But we will pay for testing which is performed in the course of extracting the "pollutants" from the land or water. 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. Civil Authority 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 Income 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 Income will begin 72 hours after the time of the first action of civil authority that prohibits access to the described premises and will apply for a period of up to four consecutive weeks from the date on which such coverage began. Civil Authority Coverage for necessary Extra Expense will begin immediately after the time of the first action of civil authority that prohibits access to the described premises and will end: (1) Four consecutive weeks after the date of that action; or (2) When your Civil Authority Coverage for Business Income ends; whichever is later. The definitions of Business Income and Extra Expense contained in the Business Income and Extra Expense Additional Coverages also apply to this Civil Authority Additional Coverage. The Civil Authority Additional Coverage is not subject to the Limits of Insurance of Section I- Property. j. Money Orders And "Counterfeit Money" We will pay for loss resulting directly from your having accepted in good faith, in exchange for merchandise, "money" or services: (1) Money orders issued by any post office, express company or bank that are not paid upon presentation; or (2) "Counterfeit money" that is acquired during the regular course of business. The most we will pay for any loss under this Additional Coverage is $5,000. No Deductible applies to this Additional Coverage. k. Employee Dishonesty (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 12 19 Includes copyrighted material of Insurance Services Office , Inc. with its pennission Page 7 of 20 (i) Any employee; or (ii) Any other person or organization . (2) We will not pay for loss or damage : (a) 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) Whether 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 employee if the employee had also committed theft or any other dishonest act prior to the effective date of this policy and you or any 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 we will pay for loss or damage in any one occurrence is: (a) $15,000; or (b) the Limit of Insurance shown in the Declarations for Employee Dishonesty ; whichever is greater. (4) All loss or damage : (a) Caused by one or more persons; or (b) Involving 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 Insurance cumulates from year to year or period to 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 sus tained during the policy period and discovered no later than one year from the end of the Policy Period. (8) If you (or any predecessor in interest) sustained loss or da mage 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. With respect to the Employee Dishonesty Additional Coverage, employee means: (a) Any natural person: (i) While in your services or for 30 days after termination of service; (ii) Who you compensate directly by salary, wages or commissions; and (iii) Who you have the right to direct and 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-term workload conditions; (c) Any natural person who is leased to you under a written agreement between you and a lab leasing firm, to perform duties related to the conduct of your business but does not mean a temporary employee as defined in Paragraph (b) above; (d) Any natural person who is a former employee, director, partner, member, manager, representative or trustee retained as a consultant while performing services for you; or EB 99 01 12 19 Page 8 of 20 Includes copyrighted material of Insurance Services Office. Inc. with its permission (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, commission 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. I. 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. (2) If 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 Check 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 Insurance 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) Coverage 1 - Coverage for Loss to the Undamaged Portion of the Building. If 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) Is in force at the time of loss. (b) Coverage 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 - Increased 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. If 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, detoxify 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 Insurance shown in the Ordinance Or Law Coverage endorsement; whichever is greater. EB 99 01 12 19 Includes copyrighted material of Insurance SeNices Office, Inc. with its pennission Page 9 of 20 n. Business Income From Dependent (b) Ends on the date when the property at Properties the premises of the dependent (1) We will pay for the actual loss of Business Income 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". If the dependent property sustains loss or damage to "electronic data" and other property, coverage under this Additional Coverage will not continue once the other property is repaired, rebuilt or replaced. The most we will pay under this Additional Coverage is $10,000. (2) We will reduce the amount of your Business Income loss, other than Extra Expense, to the extent you can resume "operations", in whole or in part, by using any other available : (a) Source of materials; or (b) Outlet for your products. (3) If you do not resume "operations", or do not resume "operations" as quickly as possible, we will pay based on the length of time it would have taken to resume "operations" as quickly as possible. (4) 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 services , 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 Income under this Additional Coverage: (a) Begins 72 hours after the time of direct physical loss or damage caused by or resulting from any Covered Cause of Loss at the premises of the dependent property; and property should be repaired, rebuilt or replaced with reasonable speed and similar quality. (6) The Business Income 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 Income coverage period. (7) The definition of Business Income contained in the Business Income Additional Coverage also applies to this Business Income From Dependent Properties Additional Coverage. o. Glass Expenses (1) ) We will pay for expenses incurred to put up temporary plates or board up openings if repair or replar.Ament of damaged glaas 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 Extinguisher Systems Recharge Expense (1) We will pay: (a) The cost of recharging or replacing, whictiever is less, your fire extinguish ers and fire ext inguishing systems (including hydrostatic testing if needed) if they are dis c harged on or within 1DD feet of the described premises; and (b) For loss or damage to Covered Property if such loss or damage is the result of an acc idental discha rge of chemicals from a fire extinguisher or a fire extinguishing system. (2) No coverage will apply if the fire extinguishing system is discharged during installation or testing. Page 10 of 20 EB 99 01 12 19 Includes copyrighted material of Insurance Services Office, Inc. with its pennission (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 (1) 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. If loss payment on the first occurrence does not exhaust this amount, then the balance is available for subsequent loss or damage sustained in, but not after, that policy year. With respect to an occurrence which begins in one policy year and continues or results in additional loss or damage in a subsequent policy year(s), all loss or damage is deemed to be sustained in the policy year in which the occurrence began. (4) 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. r. Interrupti on Of Computer Operations (1) Subject to all provisions of this additional Coverage, you may extend the insurance that applies to Business Income and Extra Expense to apply to a 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) With 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 - Interruption Of Computer Operations is limited to the "specified causes of loss" and Collapse. (b) If 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 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 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 - Interruption 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 number of premises, locations or computer systems involved. If 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. With respect to any interruption which begins in one policy year and continues or results in additional loss or expense in a subsequent policy year(s), all loss and expense is deemed to be sustained or incurred in the policy year in which the interruption began. EB 99 01 12 19 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 11 of 20 (4) This Additional Coverage - Interruption Of Computer Operations does not apply to loss sustained or expense incurred after the end of the "period of restoration", even if the amount of insurance stated in (3) above has not been exhausted . (5) Coverage for Business Income does not apply when a suspension of "operations" is caused by destruction or corruption of "electronic data", or any loss or damage to "electronic data", except as provided under Paragraphs (1) through (4) of th is 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 apply 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. s. Limited Coverage For "Fungi", Wat Rot Or Dry Rot (1) The coverage 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 preserve the property from further damage at the time of and after that occurrence. This Additional Coverage does not apply to lawns, trees, 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 removal of the "fungi'', wet rot or dry rot; (b) The cost to tear out and replace any part of the building or other property as needed to gain access to the "fungi", wet rot or dry rot; and (c) The cost of testing performed after removal, 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 "specified 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 rot or dry rot, we will not pay more than the total of $15,000 even if the "fungi", wet rot 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 applicable Limit of Insurance on any Covered Property. If a particular occurrence results in loss or damage by "fungi", wet rot or dry rot, and other loss or damage, we will not pay more, for the total of all loss or damage, than the applicable Limit of Insurance on the affected Covered Property. If there is covered loss or damage to Covered Property, not caused by "fungi", wet rot or dry rot. loss payment will not be limited 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 the Water Damage, Other Liquids, Powder Or Molten Material Damage or Collapse Additional Coverages. (6) The following applies only if Business Incom e and/o r Extra Expense Cov era ge app lies to the described premises and only if t he suspens ion of "operations" sati s fies all t he terms and conditions of th e applicable Business Income and/or Extra Expense Additional Coverage . (a) If the loss which resulted in "fungi", wet rot or dry rot does not in itself necessitate 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 the Business Income and/or Extra Expense is limited to the amount of loss and/or expense sustained in a Page 12 of 20 EB 99 01 12 19 Includes copyrighted material of Insurance Services Office, Inc. with its pennission period of not more than 30 days. The days need not be consecutive. (b) If 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 expense sustained during the delay (regardless (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: of when such a delay occurs during the "period of restoration"), but such coverage is limited to 30 days. The days need not be consecutive. (i) Communication lines, including transmission lines; (ii) Coaxial cables; and transmission optic fiber t. Lock and Key Replacement We will pay the cost of: (1) 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 Income 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 Income and/or 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 property described in Paragraph (3) Utility 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: (iii) Microwave radio relays except satellites. (c) Power Supply Services, meaning the following types of property supplying electricity, steam or gas to the described premises: (i) Utility generating plants; (ii) Switching stations; (iii) Substations; (iv) Transformers; (v) Transmissions lines. (4) Exclusion B.1.e.(1) in Section I - Property does not apply to this Additional Coverage. (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 theft 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. Inventory and Loss Adjustment Expenses 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 Cause of Loss. This Additional Coverage will not pay for expenses incurred in using the services of a public adjuster. EB 99 01 12 19 Page 13 of 20 Includes copyrighted material of Insurance Services Office, Inc. with its permission No Deductible applies to this Additional 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 at a 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 property . at the described premises, or in transit between any of these places, resulting directly from : (a) Theft, meaning any act of stealing; (b) Disappearance; or (c) Destruction. (2) In addition to the Limitations and Exclusions 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 by a continuous recording instrument in the device. (3) The most we will pay for loss in any one occurrence is: (a) $10,000 for Inside the Premises for "money" and "securities" while in or on the described premises or within a bank or savings institution and $2,000 for Outs ide the Premises for "money" and "securities" while anywhere else, or (b) the Limit of Insurance shown for Money and Securities in the Dec lar a t ions; whichever is greater. (4) All loss: (a) Caused by one or more persons; or (b) Involving 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 verify the amount of any loss or damage . z. Fine Arts (1) We wltl 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 Loss applying to your business personal property at the location. (2) We will not pay 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. (4) 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 restoring that property to its condition immediately before loss ; or (c) The cost of replacing that property with substantially identical property. (5) In the event of loss, the value of the property will be determined as of the time of loss. (6) If there is other insurance coverin g the same los s or damage provided by this Addit ional Coverage, whether covered by this policy or any other policy , we will pay only for the am o unt of covered loss or damage in excess of the amount due from that other insurance, but we will not pay more than th e a pplicable limit of insurance shown in Paragraph (3) above. aa. Voluntary Parting We will pay for loss or damage to covered property when you or your employees are fraudulently induced to part with Covered Property to or by: (1) Persons who falsely represent themselves as the proper persons to receive the property; or (21 Acceptance of fraudulent bills of lading or shipping receipts. This additional coverage is not subject to the terms of the Voluntary Parting Exclusion. EB 99 01 12 19 Page 14 of 20 Includes copyrighted material of Insurance Services Office, Inc. with its permission 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 Insurance. 3. Paragraph 6. Coverage Extensions in Section I - Property is deleted in its entirety and replaced by the following: In addition to the Limits of Insurance of Section I - Property , you may extend the insurance provided by this policy as provided below. Except as otherwise provided, the following Extensions apply to property located in or on the building described in the Declarations or in the open (or in a vehicle) within 1,000 feet of the described premises. a. Newly Acquired Or Constructed Property (1) Buildings If this policy covers Buildings, you may extend that insurance to apply to: (a) Your new buildings while being built on the described premises; and (b) Buildings you acquire at premises other than the one described, intended for: (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 If this policy covers Business Personal Property, you may extend that insurance to apply to: (a) Business Personal Property, including such property 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 Coverage 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 Property. 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 transit or 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 expen e, 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 terms and limitations of coverage, this Coverage Extension includes the expense of removing from the described premises the debris of trees, shrubs and plants which are the property of others, except in the situation in which you are a tenant and such property is owned by the landlord of the descried premises. Page 15 of 20 EB 99 01 12 19 Includes copyrighted material of Insurance Services Office, Inc. with its permission 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 by you, your officers, your partners 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 will pay under this Coverage Extension for loss or damage to "valuable papers and records" in any one occurrence at the described premises is $25,000 . 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" will be valued at the cost of restoration 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.1.c., Governmental Action; (b) Paragraph B.1.d., Nuclear Hazard; (c) Paragraph B.1.f., War And Military Action; (d) Paragraph B.2.f., Dishonesty; (e) Paragraph B.2.g., False Pretense; (f) Paragraph B.2.m.(2), Errors Or Omissions; and (g) Paragraph 8.3. f. Accounts 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) Interest charges on any loan required to offset amounts you are unable to collect pending our payment of these amounts; (c) Collection expenses in excess of your normal collection expenses that are made necessary by loss or damage; and (d) Other reasonable expenses that you incur to reestablish your records of accounts receivable; that result from direct physical loss or damage by any Covered Cause of Loss to your records of accounts receivable. (2) 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 addit ion to any amount shown in the Declarations . For accounts receivable not at the described premises, the most we will pay is $5,000. (3) Paragraph B. Exclusions in Section I - Property does not apply to this Coverage Extension except for: (a) Paragraph B.1.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; (a) Paragraph 8.2.g., False Pretense; (f) Paragraph B.3.; and Page 16 of 20 EB 99 01 12 19 Includes copyrighted material of Insurance Services Office, Inc. with its permission (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 B.1.d., Nuclear Hazard; and (c) Paragraph B.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) $10,000: or (b) the Limit of Insurance 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 Property to apply to such property while temporarily stored in a portable storage unit (including a detached trailer) located within 100 feet of the buildings or structures described in the Declarations or within 100 feet of the described premises, whichever distance is greater. (2) The limitation under Paragraph A.4.a.(5) also applies to property in a portable storage unit. (3) Coverage under this Extension: (a) Will end 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 far the total of all loss or damage to 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. (5) This Extension does not apply to loss or damage otherwise covered under this 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 Insurance 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 Insurance 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 Insurance of Section I - Property: a. Fire Department Service Charge; b. Pollutant Clean-up And Removal; c. Ordinance Or Law; d. Business Income From Dependent Properties; e. Electronic Data; and f. Interruption Of Computer Operations 3. Building Limit - Automatic Increase a. In accordance with Paragraph C.3.b., the Limit of Insurance for Buildings will automatically increase by 4%, 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: 7% is .07); or EB 99 01 12 19 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 17 of 20 (b) .04, if no percentage of annual increase is shown in the Declarations; and (2) Multiply the number calculated in accordance with b.(1) 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: If: The applicable Building limit is $100,000 . The annual percentage increase is 4%. 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. Business Personal Property Limit Seasonal Increase a. Subject to Paragraph 3.b., the Limit of Insurance for Business Personal Property is automatically increase d by: (1) The Business Personal Property - Seasonal Increase percentage shown in the Declarations; or (2) 25% if no Business Personal Property - Seasonal Increase 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 Insurance shown for Business Personal Property in the Declarations is at least 100% of your average monthly values during the lesser of: (1) The 12 months immediately preceding the date the loss or damage occurs; or (2) The period of time you have been in business as of the date the loss or damage occurs. 5. Paragraph D. Deductibles in Section I - Property Is deleted in its entirety and replaced by the following : 1. We will not pay for loss or damage in any one occurrence until the amount of loss or damage exceeds the Deductible shown in the Declarations. We will then pay the amount of loss or damage per locatio n in excess of the Deductible up to the applicable Limit of Insurance 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 $500 any one occurrence : a. Building Glass; b. Employee Dishonesty; c. Money and Securities; d. Outdoor Signs (whether attached or detached); and e. Forgery or Alteration. This Deductible will not increase the Deductible shown in the 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 Income ; c. Extra Expense; d. Civil Authority; and e. Fire Extinguisher Systems Recharge Expense. 6. Paragraph E.5. Loss Payment of the Property Loss Conditions in Section I- Property is deleted and replaced by the following: In the event of loss or damage covered by this policy: a. At our option, we will either: (1) Pay the value of lost or damaged property; (2) Pay the cost of repairing or replacing the lost or damaged property; (3) Take all or any part of the property at an agreed or appraised value; or (4) Repair, rebuild or replace the property with other property of llke kind and quality, subject to Paragraph d.(1)(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. In the event you elect to have loss or damage settled on an actual cash value basis, you may still make a claim on a replacement cost basis if you notify us of your intent to do so within 180 days after the loss or damage. EB 99 01 12 19 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 18 of 20 (b) We will not pay on a replacement cost basis for any loss or damage: (i) ) Until 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 replacement 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) If the "Actual Cash Value - Buildings" option applies, as shown in the Declarations, paragraph (1) above does not apply to Buildings. Instead, 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 governs your liability for loss or damage to that item(s), then valuation of that item(s) will be based on the amount for which you are liable under such contract, but not to exceed the lesser of the replacement cost of the property or the applicable Limit of Insurance; (c) Household contents, except personal property in apartments or rooms furnished by you as landlord; (d) Manuscripts; 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' Improvements 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. If your lease contains a renewal option, the expiration of the renewal option period will replace the expiration of the lease in this procedure. (c) Nothing if others pay for repairs or replacement. (6) Applicable only to the Money and Securities and Employee Dishonesty Additional Coverages: (a) "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) If 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 amount of accounts receivable for the month in which the loss or damage occurred or for any demonstrated variance from the average for that month. (b) The following will be deducted from the total amount of accounts receivable, however that amount is established: (i) The amount of the accounts for which there is no loss or damage; EB 99 01 12 19 Includes copyrighted material of Insurance Services Office, Inc. with its permission Page 19 of 20 (ii) ) The amount of the accounts that you are able to reestablish or collect; (iii) An amount to allow for probable bad debts that you are normally unable to collect; and (iv) All unearned interest and service charges. e. Our payment for loss of or damage to personal property of others will only be for the account of the owners of the property. We may adjust losses with the owners of lost or damaged property if other than you. If we pay the owners, such payments will satisfy your claims against us for the owners' property. We will not pay the owners more than their financial interest in the Covered Property. f. 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 appraisal award has been made. h. A party wall is a wall that separates and is common to adjoining buildings that are owned by different parties. In settling covered losses involving a party wall, we will pay a proportion of the loss to the party wall based on your interest In the wall in proportion to the interest of the owner of the adjoining building. 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 wall, subject to all applicable policy provisions including Limits of Insurance and all other provisions of this Loss Payment Condition. Our payment under the provisions of this paragraph does not alter any right of subrogation we may have against any entity, Including the owner or insurer of the adjoining building, and does not alter the terms of the Transfer Of Rights Of Recovery Against Others To Us Condition in this policy. 7. Paragraph G. Optional Coverages in Section I - Property is deleted in its entirety. 8. OTHER INSURANCE UNDER THE SAME POLICY If there Is other insurance under this policy covering the same loss or damage, we will pay only for the amount of covered loss or damage in excess of the sum of: a. The amount that such other insurance paid for the loss or damage; and b. The amount of the deductib le applicable to the loss or damage under the other insurance. However, we will not pay more than the applicable Limit of Insurance. 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. Additi onal Insured - Building Owner The following is added to Section 1- Property. If you are a building owner(s), you are an insured, but only with respect to the coverage provided under this Policy for direct physical loss or damage to the building(s) described In the Declarations and owned by you. All other policy terms and conditions apply. 11. Blanket Additional Insured The following changes revise Section II- Liability. Paragraph C. Who Is An Insured is amended to include the following: 1. Blanket Additional Insured a. Any person or organization when you and such person or orga nization have agreed in writing 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 liability for "bodily injury ", "property damage " 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; In the performance of your ongoing operations for the additional insured, or 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. Page 20 of 20 EB 99 01 12 19 Includes copyrighted material of Insurance Services Onice, Inc. with its permission (b) The Limits of Insurance applicable to the Additional insured are those specified in the written contract or agreement but not more than the Limits of Insurance specified in the Declarations of this policy. The Limits of Insurance applicable to the Additional Insured are inclusive of and not in addition to the Limits of Insurance shown in the declarations for the Named Insured. All other policy terms and conditions apply. The following changes revise Section Ill - Common Policy Conditions. Paragraph H. Other Insurance is amended to add the following subparagraph: 4. Other Insurance As Excess Insurance To the extent required by an "insured contract", 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 this insurance. If the "insured contract" does not require this provision, then Paragraph 1. above will apply.