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HomeMy WebLinkAboutCAG2020-276 - Amendment - #6 - J.A. Brennan Associates, PLLC - Signature Pointe Levee Illustrative Graphics - 10/25/2022Nancy Y for Thomas Leyrer Public Works 10/25/2022 10/27/2022 N/A D20085 N/A J.A. Brennan Associates, PLLC Contract Amendment Signature Pointe Levee Extend the time of completion to December 31, 2023. Other 12/31/2023 $0 CAG2020-276 10/25/2022 AMENDMENT - 1 OF 2 AMENDMENT NO. 6 NAME OF CONSULTANT OR VENDOR: J.A. Brennan Associates, PLLC CONTRACT NAME & PROJECT NUMBER: Signature Pointe Levee ORIGINAL AGREEMENT DATE: August 31, 2020 This Amendment is made between the City and the above-referenced Consultant or Vendor and amends the original Agreement and all prior Amendments. All other provisions of the original Agreement or prior Amendments not inconsistent with this Amendment shall remain in full force and effect. For valuable consideration and by mutual consent of the parties, Consultant or Vendor’s work is modified as follows: 1.Section I of the Agreement, entitled “Description of Work,” is hereby modified to add additional work or revise existing work as follows: In addition to work required under the original Agreement and any prior Amendments, the Consultant or Vendor shall: No change to the scope of work, however an amendment is needed to extend the time of completion to December 31, 2023 due to the project will not be completed by the end of this year. 2.The contract amount and time for performance provisions of Section II “Time of Completion,” and Section III, “Compensation,” are modified as follows: Original Contract Sum, including applicable WSST $ Net Change by Previous Amendments including applicable WSST $ Current Contract Amount including all previous amendments $ Current Amendment Sum $ Applicable WSST Tax on this Amendment $ Revised Contract Sum $ Original Time for Completion 12/31/20 (insert date) Revised Time for Completion under 12/31/22 prior Amendments (insert date) Add'I Days Required (} for this 365 calendar days Amendment Revised Time for Completion 12/31/23 (insert date) The Consultant or Vendor accepts all requirements of this Amendment by signing below, by its signature waives any protest or claim it may have regarding this Amendment, and acknowledges and accepts that this Amendment constitutes full payment and final settlement of all claims of any kind or nature arising from or connected with any work either covered or affected by this Amendment, including, without limitation, claims related to contract time, contract acceleration, onsite or home office overhead, or lost profits. This Amendment, unless otherwise provided, does not relieve the Consultant or Vendor from strict compliance with the guarantee and warranty provisions of the original Agreement. All acts consistent with the authority of the Agreement, previous Amendments (if any), and this Amendment, prior to the effective date of this Amendment, are hereby ratified and affirmed, and the terms of the Agreement, previous Amendments (if any), and this Amendment shall be deemed to have applied. The parties whose names appear below swear under penalty of perjury that they are authorized to enter into this Amendment, which is binding on the parties of this contract. IN WITNESS, the parties below have executed this Amendment, which will become effective on the last date written below. CONSULTANT VENDOR: CITY OF KENT: B By: Uj97�-�� (signature) Print Name: Carla Maloney. P.E. (signature) Print N me,'JMV:-J � tMt:=;-6 Its. P &I if!jL Its Desi n En ineerin Manager (title) DATE: I l z q Z2. DATE: D (tine) ATTEST: APPROVED AS TO FORM: (applicable if Mayor's signature required) Kent Law Department Kent City Clerk ]A Brennen - Signature Poln[e Am,] 61Leyrer AMENDMENT - 2 OF 2 Client#: 328420 JABREI DATE (MMIDD/YYYY) ACORDTM CERTIFICATE OF LIABILITY INSURANCE 1 3/18/2022 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS '7RTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES LOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED rsEPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER. IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must have ADDITIONAL INSURED provisions or be endorsed. If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer any rights to the certificate holder in lieu of such endorsement(s). PRODUCER NiACT Please See Below _ NAME: USI Insurance Services LLC PHONE g77 678-5842 610-362-8530 A/C No Ex LAIC, AI9]: 601 Union Street, Suite 1000 (AOBEs Seattl678 %rtRequest@usi.com Seattle, WA 98101 ` INSURER(S) AFFORDING COVERAGE NAIC # 206 441-6300 Citizens Insurance Com an of America 31534 INSURED J. A. Brennan Associates, PLLC 2701 First Ave., Suite 510 Seattle, WA 98121 INSURER A: P y INSURER B : Travelers Casualty and Surety Company 19038 INSURER C : Allmerica Financial Benefit Ins. Co. 41840 INSURER D : INSURER E : INSURER F : nOVFRAnFS r:FRTIFIr'ATF NIIMRFR- REVISION NUMBER - THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED, NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACTOR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. INSR LTR TYPE OF INSURANCE ADD INSR SUER WVD POLICY NUMBER POLICY MMIDDIYYYY POLICY EXP MM/DD/YYYY LIMITS A X COMMERCIAL GENERAL LIABILITY X X OB2H519876 013/01/2022 03/01/2023 EACH OCCURRENCE $2000000 CLAIMS-MADEXOCCUR PAfJS J1ENTED $1 000 000 VIED EXP (Any oneperson) $10 000 PERSONAL & ADV INJURY s2,000,000 GEN'L AGGREGATE LIMIT APPLIES PER: GENERAL AGGREGATE $4 00O OOO POLICY [ X] ECCTT LOG PRODUCTS - COMP/OP AGG s4,000,000 $ OTHER: 4UTOMOBILELIABILITY X X AW2H519887 )3/01/2022 03/01/202 a wltionl LELIMIT 1,000000 BODILY INJURY (Per person) $ X ANY AUTO OWNED SCHEDULED AUTOS ONLY AUTOS HIRED NON -OWNED AUTOS ONLY Ix AUTOS ONLY X BODILY INJURY (Per accident) $ PROPERTY DAMAGEr Far aCCidanl $ UMBRELLA LAB EXCESS LIAB OCCUR CLAIMS -MADE EACH OCCURRENCE $ AGGREGATE $ DED 1 i RETENTION $ $ _ A . WORKERS COMPENSATION AND EMPLOYERS' LIABILITY ANY PROPRIETOR/PARTNER/EXECUTIVE Y / N OFFICER/MEMBER EXCLUDED? N / A X OB21­1519876 3/01/2022 03/01/202 PER X OTH- EL. EACH ACCIDENT $1 00O 000 E.L. DISEASE - EA EMPLOYEE $1 00O 000 (Mandatory in NH) If yes, describe under DESCRIPTION OF OPERATIONS below E.L. DISEASE - POLICY LIMIT $1,,00 000 B Professional X 107592877 03/01/2022 03/01/202 $1,000,000 per claim Liability $2,000,000 annl aggr. DESCRIPTION OF OPERATIONS / LOCATIONS / VEHICLES (ACORD 101, Additional Remarks Schedule, may be attached It more space Is required) RE: Signature Point Levee Project. The General Liability and Automobile Liability policies include an automatic Additional Insured endorsement that provides Additional Insured status to the Certificate Holder, only when there is a written contract that requires such status, and only with regard to work performed on behalf of the named insured. The General Liability policy contains a special endorsement with Primary and Noncontributory wording, when (See Attached Descriptions) L City of Kent SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN Attn: Terry Jungman ACCORDANCE WITH THE POLICY PROVISIONS. 220 Fourth Avenue South Kent, WA 98032 AUTHORIZED REPRESENTATIVE ©1988-2015 ACORD CORPORATION. All rights reserved. ACORD 25 (2016/03) 1 of 2 The ACORD name and logo are registered marks of ACORD #S35340974/M35339416 LBSZP SAGITTA 25.3 (2016/03) 2 of 2 #S35340974/M35339416 a Ha Insurance Group- 082 H519876 0901120 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. AVENUES BUSINESSOWNERS DELUXE PLATINUM ARCHITECTS AND ENGINEERS PROGRAM BROADENING ENDORSEMENT This endorsement modifies insurance provided under the following: BUSINESSOWNERS COVERAGE FORM BUSINESSOWNERS LIABILITY SPECIAL BROADENING ENDORSEMENT The following is added to SECTION I - PROPERTY: The limits applicable to the coverages included in this endorsement may either be in addition to or included within the applicable Limit of Insurance. For application of the limits, refer to each coverage within this endorsement, Words or phrases in quotation marks have special meanings. The meaning of words or phrases in quotation marks is explained within the applicable coverage section. The coverages in this endorsement amend the coverage provided under the Businessowners Coverage Form through new coverages and replace coverage grants. These coverages are subject to the provisions applicable to this policy, except where amended within this endorsement. If any of the property covered by this endorsement is also covered under any other provisions of the policy of which this endorsement is made a part of, or if more than one coverage under this endorsement applies. in the event of loss or damage, you may choose only one of these coverages to apply to that loss. The most we will pay in this case is the limit of insurance applying to the coverage you select. Coverages included in this endorsement apply either separately to each described premises or on an occurrence basis. Refer to each coverage within this endorsement for application of coverage. We provide no coverage for Business Income, Extended Business Income; Extra Expense; or Business Income and Extra Expense from Dependent Properties for any of the Coverages included as part of this endorsement unless specifically stated, and then only to the extent provided for within that Scheduled or Blanket Coverage provision, COVERAGES Scheduled Coverages Limit Page 1. Accounts Receivable On Premises Accounts Receivable Off Premises $250,000 $250,000 3 2. Backup or Overflow of a Sewer, Drain or Sump Included 3 3. Brands and Labels Included 3 4. Business Income Billable Hours Option $25,000 4 5. Business Income and Extra Expense - Dependent Properties $100,000 4 6. Transit Business Income and Extra Expense $50,000 5 7. Business Income from Websites $50,0001 7 Days 5 8. Civil Authority 24 hour waiting period 5 9. Computer Equipment Computer Equipment In Transit or Off Premises Computer Equipment - Newly Acquired or Constructed Property Included $100,000 $100,000 6 10. Computer and Funds Transfer Fraud $10,000 6 11. Consequential Loss to Stock Included 6 12. Contract Penalties $25,000 6 13. Denial of Access to Premises 30 Days; 72 Hour Waiting Period 6 14. Electronic Vandalism $100,000 7 15. Employee Theft Including ERISA Compliance $50,000 7 391-1448 08 16 Includes copyrighted Material of Insurance Services Office, Inc., with its permission. Page 1 of 17 16. Expediting Expenses $25000 7 17. Extended Business Income 90 Days 7 18. Fine Arts (Including Architectural Models) $100,000 8 19. Forgery or Alteration $50,000 8 20. Hired Auto - Physical Damage $50,000 8 21. Identity Theft Expense Reimbursement $15,000 9 22. Interruption of Computer Operations On Premises Interruption of Computer Operations Off Premises $500,000 $25,000/$50,000 10 23. Marring and Scratching Included 11 24. Money and Securities Inside the Premises Money and Securities Outsidethe Premises 25. Money Orders and Counterfeit Money ^ - $25,000 $25,000 $25,000 11 11 26. Newly Acquired or Constructed Property -Business Income and Extra Expense $500,000 11 27. Ordinance or Law - Demolition Cost Coverage and Increased Cost of Construction $25,000 11 28. Ordinance or Law - Increased Period of Restoration $50,000 11 29. Ordinance or Law (Tenants Improvement Extension) $25,000 12 30.Outdoor Property $25,000 12 31. Personal Effects $75,000 12 32. Portable Electronic Devices Coverage Worldwide $10,000 12 33. Precious Metal Theft Payment Changes $25,000 13 34. Preservation of Property - Expense $25,000 13 35. Personal Property in Transit Included 13 36. Sales Representative Samples $25,000 13 37. Temporary Relocation of Property $50,000 13 38. Tenant Signs Included $25,000 $25,000 14 14 _ 39. Utility Services Direct Damage (Including Overhead Transmission Lines) Business Income Including Overhead Transmission Lines) 40. Valuable Papers and Records (Other Than Electronic Data) On Premises Valuable Papers and Records (Other Than Electronic Data) Off Premises $100,000 $100,000 14 41. Worldwide Property _Off Premises $50,000 14 391-1448 08 16 Includes copyrighted material of Insurance Services Office. Inc., with its permission. Page 2 of 17 �• Hanover Insurance Grou1). 0821-1519876 0901120 SECTION II - LIABILITY Changes Limit Pa e 1. Additional Insured by Contract, Agreement or Permit Amended Included 15 2. Additional Insured by Contract, Agreement or Permit Primary and Non -contributor Included 15 3. Aggregate Limit of Insurance (Per Project) 16 4. Damage to Premises Rented to You - Revised Limit $1,000,000 16 5. Limits of Insurance - Medical Expenses $10,000 per person 16 6. Newly Acquired or Formed Organizations 180 Days �75 Feet 7. Non -Owned Watercraft !17 8. Who Is An Insured - Unnamed Joint Venture Included 17 If. DEDUCTIBLES Deductibles are subject to the provisions applicable to the Businessowners Coverage Form except as provided below. We will not pay for covered loss or damage in any one occurrence unless the amount of loss or damage exceeds the applicable Deductible amount. We will then pay the amount of loss or damage in excess of the Deductible up to the applicable Limit of Insurance. III. COVERED PROPERTY Scheduled Coverages 1. Accounts Receivable SECTION I - PROPERTY, A. Coverage, 6. Coverage Extensions, f, Accounts Receivable, paragraphs (2) and (3) are replaced by the following: (2) We will pay under this Coverage Extension for loss or damage in any one occurrence at the described premises. The most we will pay is $250,000 for accounts receivable at the described premises, unless a higher Limit of Insurance for accounts receivable is shown in the Additional Property Coverage Schedule. (3) We will pay under this Coverage Extension for loss or damage in any one occurrence not at the described premises. The most we will pay is $250,000 for accounts receivable not at the described premises. 2. Backup or Overflow of a Sewer, Drain or Sump The following is added to SECTION I - PROPERTY, A. Coverage, 5. Additional Coverages: Backup or Overflow of a Sewer, Drain or Sump (1) We will pay for direct physical loss or damage to Covered Property at the described premises, solely caused by or resulting from water or waterborne material carried or moved by water that backs up or overflows or is otherwise discharged from a sewer, drain, sump, sump pump or related equipment. The term drain includes a roof drain and its related fixtures. (2) For the purpose of this Additional Coverage only, SECTION I - PROPERTY, B. Exclusions, g. Water, paragraph (3) is deleted, (3) Payment under this Additional Coverage is included within the applicable Limit of Insurance for Covered Property at a premises described in the Declarations. This Additional Coverage does not increase the Limits of Insurance. (4) Special Sewer Backup Exclusion We will not pay for: (a) Loss or damage from water or other materials that back-up or overflow from any sewer or drain, sump, sump pump or related equipment when it is caused by or results from any "flood", regardless of the proximity of the back-up or overflow to the "flood" condition; or (b) Failure to keep a sump pump or its related equipment in proper working condition; or (c) Failure to perform routine maintenance or repair necessary to keep a sewer or drain free from obstructions. 3. Brands and Labels 391-1448 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 3 of 17 The following is added to SECTION I - PROPERTY, A. Coverage, 6. Coverage Extensions: Brands and Labels (1) If Covered Property that has a brand or label is damaged by a Covered Cause of Loss and we elect to take all or any part of the damaged property at an agreed or appraised value, you may extend the insurance that applies to your Business Persona! Property to: (a) Pay expenses you incur to: (1) Remove the brand or label and then relabel the damaged property to comply with any applicable law: or (ii) Label or stamp the damaged property Salvage, if doing so will not physically damage the property. (b) Cover any reduction in the salvage value of the damaged properly as a result of the removal of the brand or label. (2) Payment under this Extension is included within the Limit of Insurance applicable to your Business Personal Property. 4. Business Income Billable Hours Option The following Is added to SECTION I - PROPERTY, A. Coverage, E. Property Loss Conditions, 5. Loss Payment: Business Income Billable Hours Option (1) At your option you may choose to settle a covered Business Income and Extra Expense loss, as described under the Business Income, Extra Expense and Utility Services Additional Coverages, on a billable hours basis. If you choose this settlement method, the billable hours will be verified through review of your historical financial records or based on an average of your billable hourly rate over the past 12 months. (2) This toss settlement option is only available to you prior to your submission to us of calculations described under SECTION I - PROPERTY, A. Coverage. 5. Additional Coverages, f. Business Income. (3) If you choose this option, SECTION I - PROPERTY, A. Coverage, 5. Additional Coverages, If. Business Income, paragraph (c) is replaced by the following: (c) Business Income means the: (i) Income that would have been generated from billable hours normally charged by you to Your clients for services performed by you or your employees if no physical loss or damage occurred; (ii) Other income Of your business that would have been incurred if no physical loss or damage occurred; (iii) Continuing normal operating expenses incurred, including "payroll expenses". However, it your business is not generating any income because you are primarily in research or development or have not yet brought your Product to market, your continuing normal operating expenses, including 'payroll expenses" will not be offset by the Net Loss; and (iv) "Rental Value" For manufacluring risks, Net Income includes the net sales value of production. (4) For any occurrence, the two available methods for adjusting and calculating Business Income and Extra Expense loss may not be combined. When the alternative billable hours approach described above is selected, the maximum coverage under this loss settlement option is $25,000 on an actual loss sustained basis. 5. Business Income and Extra Expense - Dependent Properties The Beading for SECTION I - PROPERTY, A. Coverage, 5_ Additional Coverages, m. Business Income from Dependent Properties is replaced by the following: m. Business Income and Extra Expense from Dependent Properties The following is added to Business Income and Extra Expense from Dependent Properties: We will pay the necessary Extra Expense you incur due to direct physical loss of or damage to "dependent property" caused by or resulting from a Covered Cause of Loss. The definition of Extra Expense for this Additional Coverage is replaced by the following: 391-1448 0816 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 4 of 17 e n. F- Hanover IIISler: ML' Craup.. 082 H519876 0901120 Extra Expense means necessary Business Income from Websites expenses you incur during the "period (1) You may extend this insurance to of restoration" for the "dependent apply to a "suspension" of property" that you would not have "operations" caused by direct incurred if there had been no direct physical loss or damage to physical loss or darnage to the premises of any "dependent property" property that you depend on for caused by or resulting from a web site and communications services" from a Covered Cause of Covered Cause of Loss; Loss. (1) To avoid or minimize the "suspension" (2) We will not pay for any loss of of business and to "operations": Business Income you incur during continue or the first 12 hours that immediately (2) To minimize the "suspension" of follows the time when you first business if you cannot continue discovered the Covered Cause of "operations". Loss. This Waiting Period does not We will reduce the amount of your apply to Extra Expense. Extra Expense loss to the extent (3) The most we will pay for the actual you can return "operations" to loss of Business Income and normal and discontinue such necessary and reasonable Extra Extra Expense. Expense in any one occurrence (3) Paragraph (2) of this Additional under this Additional Coveragge is Coverage is replaced by the $50,000 and only for the 7-day following: period immediately following the Covered Cause of Loss. (2) The most we will pay under this Additional Coverage is (4) Coverage does not apply to $100,000 per occurrence, regardless of the number of Websites unless there is a duplicate or back-up copy of your "dependent properties" Web Page stored at a location that affected. is at least 1,000 feet away from the 6. Transit Business Income and Extra premises of the vendor that provides "web site and Expense communications services". The following is added to SECTION I - {5) "Web Site and Communication PROPERTY, A. Coverage, 5. Additional Services" means: Coverages: (a) Internet access, e-mail, web Transit Business Income and Extra hosting, value added network Expense services and application (1) We will pay the actual loss of software services at the Business Income you sustain and premises of others; or necessary and reasonable Extra (b) Network and router Expense you incur caused by direct infrastructure located more physical loss of or direct physical than 1,000 feet from the damage to Covered Property while "in described premises. transit" caused by or resulting from a Covered Cause of Loss. b. This Additional Coverage is not subject to SECTION I - PROPERTY, C. Limits of (2) SECTION 1 - PROPERTY, B. Insurance. Exclusions, paragraphs 1.b Earth Movement and 1.g Water do not apply g Civil Authority y to this Additional Coverage: SECTION I - PROPERTY, A. Coverage, S. (3) The most we will pay for loss in any Additional Coverages, i. Civil Authority, one occurrence einder this Additional paragraph (2) is replaced by the following: Coverage is $50,000. (2) Civil Authority Coverage for Business (4) The amount payable under this Income will begin 24 hours after the Additional Coverage is additional time of the first action of civil authority insurance, that prohibits access to the described 7. Business Income from Websites premises and will end: a. The followingIs added to SECTION 1 - (a) Four consecutive weeks after the time of that action; or PROPERTY, A. Coverage, 5. Additional Coverages: b When our Civil AuthorityCoverage () g for Business Income ends-, 391-1448 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 5 of 17 whichever is later. (1) You may extend the insurance that 9. Computer Equipment applies to your Business Personal SECTION I - PROPERTY, A. Coverage, 5- Property to apply to the reduction in value of the remaining parts of "stock" Additional Coverages, r. Computer Equipment, paragraph (6) is replaced by in process of manufacture that are the following: physically undamaged but are unmarketable as a complete product (6) Regardless of the number of insured locations involved, the because of direct physical toss or damage from Covered most we will a Cause of Loss pay for loss or damage under this to other parts of covered "stock" in Additional Coverage In any one process of manufacture at an insured occurrence is the applicable Limit of location. Insurance for Covered Property at the (2) Should it be determined that such premises described in the Declarations.. "stock" retains only a salvage value, we retain the option of paying the full The most we will pay for loss or value of file "stock" as agreed within damage under this Additional this policy, and taking the damaged Coverage to properly described in property for salvage purposes. paragraphs (1) and (2) above in any "in (3) Payment under this Coverage one occurrence while transit' or at Extension is included within the a premises other than the described applicable Limit of Insurance. premises is $100,000. The most we will pay for loss ordamage 12. Contract Penalties under this Additional The followingis added to SECTION I - Coverage Coverage to property described in PROPERTY' A. Coverage, 5. Additional paragraphs (1) and (2) above in any Coverages: g one occurrence for property that you Contract Penalties newly acquire is $100,000. (1) We will pay for contract penalties you With respect to newly acquired are required to pay due to your failure property under this Additional to provide your product or service Coverage, coverage will end when any according to contract terms because of of the following occurs: direct physical loss or damage by a (a) The policy expires; Covered Cause of Loss to Covered b 180 days after () y you acquire the Property. property listed in (1)(a - d); (2) The most we will pay for all penalties (c) You report values to us' in any one occurrence is $25,000. The most we will pay for Extra (3) The amount payable under this Additional Coverage is additional Expense is $5,000 or the amount insurance. shown in the Additional Property Coverage Schedule in any one 13. Denial of Access to Premises occurrence. The following is added to SECTION I - This Additional Coverage is not PROPERTY, A. Coverage, 5. Additional subject to SECTION I - PROPERTY, C. Overages: Limits of Insurance. Denial of Access to Premises 10. Computer and Funds Transfer Fraud (1) We will pay for the actual loss of SECTION I - PROPERTY, A. Coverage, 5. Business Income you sustain and Additional Coverages, hh. Computer and necessary Extra Expense you incur Funds Transfer Fraud, paragraph (3) is when ingress to or egress from the replaced by the following: described premises Is prevented, due (3) The most we will pay per occurrence to direct physical loss of or damage to property that is away from but within under this Additional Coverage is $10,000 unless a higher Limit of 2000 feet of the described premises, Insurance is shown in the Schedule of caused by or resulting from any Covered Cause of Loss covered under Amended Limits of Insurance. this policy. 11. Consequential Loss to Stock (2) The coverage for Business Income will The following is added to SECTION I - begin 72 hours after the loss or PROPERTY, A. Coverage, 6. Coverage damage to the premises that causes Extensions: the denial of access and will apply for Consequential Loss to Stock 391-1448 08 16 Includes copyrighted material of Insurance Services Office, Inc„ with its permission. Page 6 of 17 Hanauer Insurance CrOut7- 0132 H519876 0901120 a period of up to 30 consecutive days after coverage begins. (3) The coverage for Extra Expense will begin immediately after the loss or damage to the premises that causes the denial of access and will end: (a) 30 consecutive days after coverage begins; or (b) When your Business Income coverage ends; whichever is earlier. (4) The definitions of Business Income and Extra Expense contained in the Business Income Additional Coverage and the Extra Expense Additional Coverage also apply to this Denial of Access to Premises Additional Coverage. 14. Electronic Vandalism SECTION I - Property, A. Coverage, 5. Additional Coverages, dd. Electronic Vandalism, paragraph (3) is replaced by the following: (3) The most we will pay for loss of or damage to computer "hardware" or "software" in any one occurrence under this Additional Coverage is $5,000. The most we pay for all covered losses to computer "hardware" or "software" under this Additional Coverage during each separate 12-month period of this policy is $100.000. The most we will pay under this Additional Coverage for all loss or damage sustained in any one policy year, regardless of the number of occurrences of loss or damage or the number of premises, locations or computer systems involved, is $100,000, unless a higher Limit of Insurance is shown in the Declarations_ If loss payment on the first occurrence does not exhaust this amount, then the balance is available for subsequent loss or damage sustained in, but not after, that policy year. With respect to an occurrence which begins in one policy year and continues or results in additional loss or damage in a subsequent policy year(s), all loss or damage is deemed to be sustained in the policy year in which the occurrence began. 15. Employee Theft Including ERISA Compliance SECTION I - PROPERTY, A. Coverage, 5. Additional Coverages, p. Employee Theft Including ERISA, paragraph (6), is replaced by the following: (6) The most we will pay for all loss resulting directly, from an occurrence is $50,000. 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. 16. Expediting Expenses The following is added to SECTION I - PROPERTY, A. Coverage, 5. Additional Coverages: Expediting Expenses (1) When a Covered Cause of Loss occurs to Covered Property, we will pay for the reasonable and necessary additional expenses you incur to: (a) Make temporary repairs; (b) Expedite permanent repair or replacement of damaged property; or (c) Provide training on replacement machines or equipment. (2) The most we will pay for loss under this Additional Coverage in any one occurrence is $25.000. (3) The amount payable under this Additional Coverage is additional insurance. 17. Extended Business Income SECTION I - PROPERTY, A. Coverage, 5. Additional Coverages, f. Business Income, (2) Extended Business Income, (a) Extended Business Income - Other Than Rental Value, paragraph (ii) and (b) Extended Business Income - Rental Value, paragraph (ii) are replaced by the following. - (a) Extended Business Income - Other Than Rental Value (ii) Ends on the earlier of: 1) 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 2) 90 consecutive days after the date determined in (2)(a)(1) above. (b) Extended Business Income - Rental Value (ii) Ends on the earlier of: 1) The date you could restore tenant occupancy, with reasonable speed, to the level which would generate the "Rental Value" that would have 391-1448 08 16 Includes copyrighted material of Insurance Services Office. Inc., with its permission. Page 7 of 17 existed if no direct physical loss or damage had (if) The covered "auto's" overturn. occurred; or (b) Collision coverage 2) 90 consecutive days after the (i) The covered "auto's" collision date determined in (2)(b)(i) with another object; or above. (if) The covered "auto's" overturn. 18. Fine Arts (2) For the purpose of this Additional a. SECTION I - PROPERTY, A. Coverage, Coverage only, SECTION I - 6, Coverage Extensions, x. Fine Arts, PROPERTY, A. Coverage, 2. Property paragraph (3) is replaced by the Not Covered, paragraph a. is replaced following: by the following; (3) The most we will pay for loss a. Aircraft, automobiles, motortrucks under this Additional Coverage is and other vehicles subject to motor $100,000 per occurrence vehicle registration and: regardless of the number of (1) Any "auto" as described in locations or buildings involved. paragraph (1) above, while b. For the purpose of this Additional used in any professional or Coverage, SECTION I - PROPERTY, G. organized racing or demolition Property Definitions, 21. "Fine Arts" is contest or stunting activity, or replaced by the following: while practicing for such 21. "Fine Arts" means architectural Contest or activity: models, paintings, etchings, (2) Tapes, records, discs or other pictures, tapestries, rare art glass, similar audio, visual or data art glass windows, valuable rugs, electronic devices designed for statuary, sculptures, "antique" use with audio, visual or data furniture, "antique" jewelry, electronic equipment; bric-a-brac, porcelains, and (3) Any device designed or used to similar property of rarity, historical detect speed measuring value, or artistic merit, equipment such as radar or 19. Forgery or Alteration laser detectors and any SECTION I - PROPERTY, A. Coverage, 5. jamming apparatus intended to elude or disrupt speed Additional Coverages, k. Forgery or measurement equipment; or Alteration, paragraph (5) is replaced by the following: (4) Any electronic equipment, (5) The most wewill pay for any loss, wiithout regard to whether this equipment is permanently including legal expenses, under this Additional Coverage is $50,000. installed, that receives or transmits audio, visual or data 20. Hired Auto - Physical Damage signals and that is not The following is added to SECTION I - designed solely for the reproduction of sound. PROPERTY, A. Coverage, 5. Additional Coverages: (3) For the purpose of this Additional Hired Auto - Physical Damage Coverage Coverage only, SECTION PROPERTY, B. Exclusions does not (1) We will pay for loss to an "auto" you apply with the exception of the or an "employee", al your direction, following exclusions: (ease, hire or rent without a driver for (a) 1.d. Nuclear Hazard; a period of 30 days or Icss for the purpose of conducting customary (b) 11 War and Military Action operations for your business. This For the purpose of this Additional does not include any "auto" you tease, Coverage only, the following hire or rent from any of your exclusions are added to SECTION I - employees" or members of (heir PROPERTY, B. Exclusions: households. 1. We will not pay for loss to a We will pay for loss to a covered covered "auto" caused by or "auto" or its equipment caused by: resulting from someone causing (a) Comprehensive coverage you to voluntarily part with the From any cause except: auto" by trick or scheme or under false pretenses; or (i) The covered "auto's" collision with another object; or 391-1448 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 8 of 17 HanMr ItlsurinCl' (.l'l)ll1), OB2 H519876 0901120 2. We will not pay for loss caused by or resulting from wear and tear, freezing; mechanical or electrical breakdown; blowouts, punctures or other road damage to tires. (4) For the purpose of this Additional Coverage only, the following is added to SECTION I - PROPERTY, C. Limits of Insurance: Hired Auto Physical Damage Limits of Insurance The most we will pay for loss to any one covered "auto" is the lesser of: a. The actual cash value of the damaged or stolen property as of the time of loss; b. The cost of repairing or replacing the damaged or stolen property with other property of like kind and quality; or c. $50,000. (5) The following is added to SECTION I - PROPERTY, D. Deductibles, paragraph 5.: Hired Auto - Physical Damage (6) For the purpose of this Additional Coverage only, the following is added to SECTION I - PROPERTY, G. Property Definitions: 1. "Auto" means a land motor vehicle, trailer or semitrailer that is subject to motor vehicle registration, or designed for travel on public roads. including any attached machinery or equipment. The amount payable under this Additional Coverage is additional insurance. This coverage is excess to any other valid insurance whether collectible or not. 21. Identity Theft Expense Reimbursement The following is added to SECTION I - PROPERTY, A. Coverage, 5. Additional Coverages: Identity Theft Expense (1) We will pay for "expenses" incurred by an "insured person" as a direct result of any one "Identity Theff" first discovered or learned of by such "insured person" during the policy period. Any act or series of acts committed by one or more persons. or in which such persons are aiding and abetting others against an "insured person", is considered to be one "identity theft' even if a series of acts continues into subsequent policy period(s). (2) With respect to this Additional Coverage: (a) "Expenses" means: (I) Costs for notarizing affidavits or similar documents attesting to fraud required by financial institutions or similar credit grantors or credit agencies; (ii) Costs of certified mail to law enforcement agencies, credit agencies, financial institutions or similar credit agencies; (iii) Lost income resulting from: 1) Time taken off work to complete fraud affidavits; or 2) Meeting or talking to law enforcement agencies, credit agencies or legal counsel. (iv) Loan application fees for reapplying for a loan or loans when the original application is rejected solely because the lender received incorrect credit information; (v) Reasonable attorney fees to: 1) Defend lawsuits brought against an "insured person" by merchants, financial institutions or their collection agencies; 2) Remove any criminal or civil judgments wrongly entered against an "insured person"; or 3) Challenge the accuracy or completeness of any information in a consumer credit report; (vi) Charges for long distance telephone calls due to "Identity theft" to: 1) Merchants; 2) law enforcement agencies; 3) Financial institutions or other similar credit grantors; or 4) Credit agencies (vii)Reasonable fees for professional financial advice or professional credit advice. 391-1448 08 16 Includes copyrighted material of Insurance Services Office, Inc„ with its permission. Page 9 of 17 The most we will pay for (5) The most we will pay under this 11 expenses" under paragraph (2) Additional Coverage for all "Expenses" (a) is $5,000, subject to a arising out of all "Identity Theft" against maximum of $200 per day. an "Insured Person" incurred in any (b) For purposes of this Additional one policy year, regardless of the Coverage, "identity theft" means: number of "Identity Thefts" involved, is The act of knowingly transferring 9 Y g $15,000 unless a higher Limit ❑f Insurance is shown in the Declarations. or using, without lawful authority, a means of identification of an to be (6) In order far coverage g provided "insured person" with the intent to under this Additional coverage, you commit, or to aid or abet another must send to us, within 60 days after to commit, any unlawful activity our request, receipts, bills or other that constitutes a violation of records that support your claim for Federal law or a felony under any 'expenses" under "identity theft" applicable state or local law; and coverage. (c) "Insured person" means: 22• Interruption of Computer Operations (i) For sole proprietorships: The SECTION I - PROPERTY, A. Coverage, 5. individual who is the sole Additional Coverages, ee. Interruption of proprietor of the Named Computer Operations, paragraph (3) is Insured shown in the replaced by the following: Declarations; (3) The most we will pay under this (if) For partnerships: Any Additional Coverage • Interruption of individual that is a partner of Computer Operations for all loss the Named Insured shown in sustained and expense incurred in any the Declarations; one policy year, regardless of the (Iiii) For corporations or any other number of interruptions or the number of premises, locations or computer type of organization: The systems involved is: Chief Executive Officer, and any individual who has an (a) $500,000 unless a higher Limit of ownership interest of at least Insurance is shown in the 20% of the Named Insured, Declarations. If loss payment shown in the Declarations. relating to the first interruption (3) The following additional exclusions does not exhaust this amount, then the balance is available for loss or apply to this Additional Coverage: expense sustained or incurred as a We will not pay for: result of subsequent interruptions (a) Expenses incurred due to any in that policy year. A balance remaining at the end of a policy fraudulent, dishonest or criminal acts by: year does not increase the amount of insurance in the next policy (f) An "insured person"; year. With respect to any (ff) Any person aiding or abetting Interruption which begins in one an "Insured person"; or policy year and continues or (fff) Any authorized representative "insured results in additional loss or expense in a subsequent policy of an person"; year(s), all loss and expense is whether acting alone or in deemed to be sustained or collusion with others; or incurred in the policy year in which (b) Loss other than "expenses". the interruption began. Account balances which arise out (b) $25,000 in any one occurrence for of fraudulent or unauthorized interruptions covered under charges would be one example of paragraphs (1) and (2) above for loss other than "expenses". loss arising out of a Covered (4) Regardless of the amount of the Cause of Loss occurring away from the described premises. This per deductible for Covered Property shown in the Declarations, the most occurrence limit applies regardless we will deduct from any claim for of the number of premises involved. "expenses" under this Additional Coverage for any one "Identity theft" (c) $50,000 for all losses arising out of is $250. interruptions covered under paragraphs (1) and (2) that arise out of a Covered Cause of Loss 391-1448 0816 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 10 of 17 1'he, Hanover Insurance Group_ OB2 H519876 0901120 occurring away from the described premises during each separate 12 month period of this policy. 23. Marring and Scratching The following is added to SECTION l - PROPERTY, A. Coverage, 6. Coverage Extensions: Marring and Scratching (1) You may extend the insurance that applies to Business Personal Property to apply to damage caused directly by sudden and accidental marring and scratching of: (a) Your "stock"; (b) Your printing plates or (c) Property of others that is in your care, custody or control. (2) This Coverage Extension does not apply to: (a) Property at other than the described premises; or (b) Personal Property in transit. (3) Payment under this Coverage Extension is Included within Limit of Insurance applicable to your Business Personal Property, 24. Money and Securities SECTION I - PROPERTY, A. Coverage, 5. Additional Coverages, s. Money and Securities, paragraph (5) is replaced by the following: (5) The most we will pay for loss in any one occurrence is: (a) $25,000 or the amount shown in the Additional Property Coverage Schedule Inside the Premises for "money" and "securities" while: (1) In or on the described premises; or (ii) Within a bank or savings institution in the coverage territory; and (b) $25,000 or the amount shown in the Additional Property Coverage Schedule Outside the Premises for "money" and "securities" while at any other location listed in (1) above and while in the coverage territory. 25. Money Orders and Counterfeit Money SECTION I - PROPERTY, A. Coverage, 5. Additional Coverages, j. Money Orders and Counterfeit Money, paragraph (3) is replaced by the following: (3) The most we will pay for any loss under this Additional Coverage is $25,000. 26. Newly Acquired or Constructed Property - Business Income and Extra Expense SECTION I - PROPERTY, A. Coverage, 6. Coverage Extensions, a. Newly Acquired or Constructed Property, paragraph (3) is replaced by the following: (3) Business Income and Extra Expense You may extend the insurance that applies to Business Income and Extra Expense to apply to property at any location you acquire. The most we will pay for loss or damage under this Extension is $500,000 at each premises. 27. Ordinance or Law - Demolition Cost and Increased Cost of Construction SECTION I - PROPERTY, A. Coverage, 5. Additional Coverages, I. Ordinance or Law, (5) Loss Payment, paragraph (d) is replaced by the following: (d) The most we will pay for the total of all covered losses for Demolition Cost and Increased Cost of Construction for each building described in the Declarations is $25,000 or the amount shown in the Additional Property Schedule. If a damaged building(s) is covered under a Blanket Limit of Insurance and the Blanket Limit of Insurance applies to more than one building or item of property, then the most we will under this Additional Coverage, for each building, is $25,000, or the amount shown in the Additional Property Coverage Schedule. 28. Ordinance or Law - Increased Period of Restoration a. The following is added to SECTION I - PROPERTY, A. Coverage, 5. Additional Coverages, I. Ordinance or Law, paragraph (4) Coverage: If a Covered Cause of Loss occurs to properly at the premises described in the Declarations, coverage Is extended to include the amount of actual and necessary loss you sustain during the increased period of "suspension" of "operations" caused by or resulting from the enforcement of any ordinance or law that: (a) Regulates the construction or repair of any property; 391-1448 0816 Includes copyrighted material of Insurance Services Office, Inc., with ils permission. Page 11 of 17 (b) Requires the tearing down of parts of any property not damaged by a Covered Cause of Loss; and (c) Is in force at the time of loss. However, coverage is not extended under this endorsement to include loss caused by or resulting from the enforcement of any ordinance or law which requires: (d) The demolition, repair, replacement, reconstruction, remodeling or remediation of property due to contamination by pollutants" or due to the presence, growth, proliferation, spread or any activity of "fungi", wet or dry rot or bacteria; or (e) 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", "fungi", wet or dry rot or bacteria. b. The following is added to SECTION I - PROPERTY, A. Coverage 5. Additional Coverages, I. Ordinance or Law, (5) Loss Payment, paragraph (c): The most we will pay for loss under Increased Period of Restoration in any one occurrence is $50,000 for each described building shown in the Declarations or the amount shown in the Additional Property Coverage Schedule. If a damaged building(s) is covered on a blanket Limit of Insurance which applies to more than one building or item of property, then the most we will pay for Increased Period of Restoration for each described building in any one occurrence is $50,000. 29. Ordinance or Law (Tenant's Improvement Extension) a. The following is added to SECTION I - PROPERTY, A. Coverage, 5. Additional Coverages, I. Ordinance or Law, paragraph (4) Coverage: Coverage provided under paragraphs (a), (b) and (c) above applies to tenant's improvements and betterments but only if a Limit of Insurance is shown in the Declarations for Business Personal Property. Business Personal Property must be insured on a replacement cost basis. This extension is provisional and excess to any other valid insurance for tenant's improvements and betterments whether collectible or not. b. The following is added to SECTION I - PROPERTY, A. Coverage, 5. Additional Coverages, 1. Ordinance or Law, (5) Loss Payment, paragraph (c): Regardless of the number of locations insured or buildings involved, the most we will pay for any loss to tenant's improvements and betterments under Ihis Additional Coverage in any one occurrence is $25,000. 30. Outdoor Property SECTION I - PROPERTY, A. Coverage, 6. Coverage Extensions, c. Outdoor Property, paragraph (3) is replaced by the following: (3) Regardless of the number of described premises involved, the most we will pay for loss or damage under this Extension, including debris removal expense, is $25,000, but not more than $1,000 for any one tree, shrub or plant. 31. Personal Effects SECTION I - PROPERTY, A. Coverage, 6. Coverage Extensions, d. Personal Effects, paragraph (3) is replaced by the following: (3) The most we will pay for loss or damage under this Extension is $75,000 at each described premises. 32. Portable Electronic Devices Coverage Worldwide The following is added to SECTION I - PROPERTY, A. Coverage, 5. Additional Coverages: Portable Electronic Devices Coverage Worldwide (1) We will pay for loss or damage caused by or resulling from a Covered Cause ❑f Loss to portable electronic devices while anywhere in the world, including while "in transit". (2) For the purpose of this Additional Coverage, the following is added to SECTION I - PROPERTY, G. Property Definitions: Portable electronic devices includes laptops, tablets, e-readers, smartphones or other lightweight, hand-held or wearable devices capable of storing, retrieving and processing data. (3) This coverage is provided when the property is owned by you or owned by others when in your or your "employees"' care, custody or control, subject to SECTION I - PROPERTY, E. 391-1448 0816 Includes copyrighted rnaterial of Insurance Services Office. Inc., with its permission. Page 12 of 17 1 liu Hanv�er Insurstite L;rotiP. OB2 H519876 0901120 Property Loss Conditions, 5. Loss Payment, paragraph d.(3)(b). (4) We will not pay for loss or damage to portable electronic devices when caused by, resulting from, or arising out of "theft" or unexplained loss when the property is checked baggage with a carrier for transit. (5) The provisions for a Business Income loss will be governed by the terms of SECTION I - PROPERTY, A. Coverage, 5. Additional Coverages, f. Business Income except: (a) There is no requirement that a loss occur within 1,000 feet or at the described premises as stated in paragraph (1)(a); and (b) The following are not included under this Additional Coverage: (i) Continuing normal operating expenses incurred, including "payroll expense"; (it) Extended Business Income. (6) The provisions for Extra Expense loss will be governed by the terms of SECTION I - PROPERTY, A. Coverage, 5. Additional Coverages, g, Extra Expense except: (a) There is no requirement that a loss occur within 1,000 feet or at the described premises as stated in paragraph g.(1) and g.(2). (7) Limitations, item b. does not apply to this Additional Coverage. (8) SECTION I - PROPERTY, B. Exclusions, 5. Business Income and Extra Expense Exclusions, paragraph {4) does not apply to this Additional coverage. (9) Regardless of the number of lost or damaged portable electronic devices, the most we will pay per occurrence including actual loss of Business Income you sustain and necessary Extra Expense you incur, is $10,000. (10)The amount payable under this Additional Coverage is additional insurance. 33. Precious Metal Theft Payment Changes SECTION I - PROPERTY, A. Coverage, 4. Limitations, paragraph c. is replaced by the following: c. For loss or damage by "theft", the following types of property are covered only up to the limits shown: (1) $10,000 for furs, fur garments and garments trimmed with fur. (2) $10,000 for jewelry, watches, watch movements, jewels, pearls, precious and semi-precious stones. This limit does not apply to jewelry and watches worth $250 or less per item. (3) $25,000 for bullion, gold, silver, platinum and other precious alloys or metals. 34. Preservation of Property - Expense The following is added to SECTION I - PROPERTY, A. Coverage, 5. Additional Coverages: Preservation of Property - Expense (1) If it is necessary to move Covered Property from the described prerises to preserve it from loss or damage by a Covered Cause of Loss, we will pay your expenses to move or store the Covered Property. (2) This coverage applies for 90 days after the property is first moved, but does not extend past the date on which this policy expires. (3) The most we will pay under this Additional Coverage is $25,000. This Additional Coverage is an additional amount of insurance. 35. Personal Property in Transit SECTION I - PROPERTY, A. Coverage, 6. Coverage Extensions, L Personal Property In Transit, paragraph (5) is replaced by the following: (5) Payment under this Coverage Extension is included within the Limit of Insurance applicable to your Business Personal Property 36. Sales Representative Samples SECTION I - PROPERTY, 5. Additional Coverages, y. Sales Representative Samples, paragraph (3) is replaced by the following: (3) The most we will pay for any loss or damage under this Additional Coverage is $25,000, 37. Temporary Relocation of Property The following is added to SECTION I - PROPERTY, A. Coverage, 5. Additional Coverages: Temporary Relocation of Property 391-1448 08 16 Includes copyrighted material of Insurance Services Office, Inc.. with its permission. Page 13 of 17 (1) We will pay for loss of or damage to below. Covered Property from a Covered Cause of Loss while it is away from We will only pay for loss you the described premises, if it is being sustain after the first 24 hours following the direct physical loss or stored temporarily at a location you d❑ damage to the property described not own, lease or operate while the above. described premises is being renovated or remodeled. The most we will a for loss in pay (2) This coverage applies for 90 days after any one occurrence under this Additional Coverage is $25.000 at the properly is first moved, but does each described premises or the not extend past the date on which this Limit of Insurance shown in the policy expires. Additional Property Coverage (3) The most we will pay under this Schedule. Additional Coverage is $50,000. b. SECTION I - PROPERTY, A. Coverage, (4) The amount payable under this 5. Additional Coverages, bb. Utility Additional Coverage is additional Services, paragraph (4) is deleted. insurance. 40. Valuable Papers and Records (Other Than 38. Tenant Signs Electronic Data) SECTION I - PROPERTY, A. Coverage, S. SECTION I - PROPERTY, A. Coverage, 6. Additional Coverages, t. Tenant signs, Coverage Extensions, e. Valuable Papers paragraph (4) is replaced by the following: and Records Other Than Electronic Data), (4) The most we will pay for loss or paragraphs (2) and (3) are replaced by the damage in any one occurrence is the following; Limit of Insurance for Business (2) The most we will pay under this Personal Property shown in the Coverage Extension for loss or Declarations. damage to "valuable papers and records" in any one occurrence the 39. Utility Services (Including Overhead at Transmission Lines) described premises is $100;000. a. SECTION I - PROPERTY, A. Coverage, (3) The most we will pay under this 5. Additional Coverages, bb. Utility Coverage Extension for loss or Services, paragrapphs (1) and (2) are damage to valuable papers and replaced by the following: records In any one occurrence not at the the described premises is $100,000. (i) We will pay for loss of or damage to Covered Property caused by an 41. Worldwide Property Off Premises interruption in service to the The following is added to SECTION I - described pramises. The PROPERTY, A. Coverage, 6. Coverage interruption must result from direct Extensions: physical loss or damage by a Covered Cause of Loss to property Worldwide Property Off -Premises not on the described premises that 1 extend the insurance that () You may provides the services shown in applies to your Business Personal paragraph (3) below. Property and Personal Property of The most we will pay for loss in Others to apply to that property while any one occurrence under this it is temporarily outside the coverage territory if it is: Additional Coverage is $25,000 at each described premises or the (a) Temporarily at a location you do Limit of Insurance shown in the not awn, lease or operate; Additional Property Coverage (b) Temporarily on display or exhibit Schedule. at any fair, trade show or (2) We will pay for the actual loss of exhibition; Business Income you sustain and (c) Samples of your "stock" in trade in necessary Extra Expense you incur the custody of your sales caused by the interruption of representatives; or service at the described premises. The interruption must result from (d) While "in transit' between the direct physical loss or damage by described remises and a location a Covered Cause of Loss to described i (a), (b) or (c) above. property not on the described (2) The most we will pay for loss or premises that provides the damage under this Extension is services shown in paragraph (3) $50.000. 391-1448 08 16 Includes copyrighted material o1 Insurance Services Office, Inc., with its permission. Page 14 of 17 Hanover Insurance Group. OB2 H519876 0901120 (3) This Extension provides an additional amount of insurance. SECTION II - LIABILITY Paragraphs 2. through 8. amend coverage provided under SECTION II - LIABILITY. 1. Additional Insured by Contract, Agreement or Permit - Amended For purposes of the coverage provided by this endorsement, Coverage 1. Additional Insured by Contract, Agreement or Permit, subparagraph c. (5) of the Businessowners Liability Special Broadening Endorsement is replaced by the following: This provision does not apply to: (5) All professional liability as an architect or engineer arising out of any construction agreement or activities under which any insured or anyone acting on any insured's behalf provides or provided service, advice, expertise or work. Construction includes, but is not limited to, the plan, conception, design, build, construct, assembly, development, safety, erection, formation, reconstruct, rehabilitation, repair, or any improvement made to real property. Construction also includes the hiring, supervision or management of any of these activities. However, this exclusion does not apply to liability arising out of an insured's presence at a jobsite that was not caused by professional activities listed in the above paragraph. This exclusion applies even if the claims against any insured allege negligence or other wrongdoing in the supervision, hiring, employment, training or monitoring of others by that insured, if the "occurrence" which caused the "bodily injury" or "property damage" or the offense which caused the "personal and advertising injury" involved professional liability as an architect or engineer arising out of any construction agreement or activities under which any insured or anyone acting on any insured's behalf provides or provided service, advice, expertise or work. 2. Additional Insured by Contract, Agreement or Permit - Primary and Non-contributory a. The following is added to SECTION III - COMMON POLICY CONDITIONS (APPLICABLE TO SECTION I - PROPERTY AND SECTION II - LIABILITY), paragraph H. Other insurance: Additional Insured - Primary and Non -Contributory It you agree in a written contract, written agreement or permit that the insurance provided to any person or organization included as an Additional Insured under SECTION 11 - LIABILITY, C. Who is an Insured, is primary and non-contributory, the following applies: If other valid and collectible insurance is available to the Additional Insured for a loss covered under SECTION 11 - LIABILITY of this Coverage Part, our obligations are limited as follows: (1) Primary Insurance This insurance is primary to other insurance that is available to the Additional Insured which covers the Additional Insured as a Named Insured. We will not seek contribution from any other insurance available to the Additional Insured except: (a) For the sole negligence of the Additional Insured; (b) When the Additional Insured is an Additional Insured under another primary liability policy; or (c) When b. below applies. If this insurance is primary, our obligations are not affected unless any of the other insurance is also primary. Then, we will share with all that other insurance by the method described in c. below, (2) Excess Insurance (a) This insurance is excess over any of the other insurance, whether primary, excess, contingent or on any other basis: (i) That is Fire, Extended Coverage, Builder's Risk, Installation Risk or similar coverage for "your work"; (it) That is Fire insurance for premises rented to the Additional Insured or temporarily occupied by the Additional Insured with permission of the owner; (iii) That is insurance purchased by the Additional Insured to cover the Additional Insured's liability as a tenant for "property damage" to premises rented to the Additional Insured or temporarily occupied by the Additional with permission of the owner; or (iv) If the loss arises out of the maintenance or use of aircraft, 391-1448 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 15 of 17 "autos" or watercraft to the LIABILITY, F. Liability and Medical Expense extent not subject to Exclusion Definitions: g. of SECTION If - LIABILITY. B. Exclusions, 1. Applicable to 1, "Unnarned joint venture" means any Business Liability Coverage. joint venture in which you are a member or partner where: (v) That is insurance available to you for your participation in a. Each and every one of your any past or present "unnamed a hair saloniures in that joint venture is a Bair salon. joint venture". (vi) That is any insurance you may b. That joint venture is not. have that provides coverage 3. Aggregate Limit of Insurance (Per Project) for your professional services. a. For purposes of the coverage provided by (b) When this insurance is excess, we this endorsement, the following is added to will have no duty to defend the SECTION II - LIABILITY, D. Liability and insured against any "suit" if any Medical Expenses Limits: other insurer has a duty to defend insured "suit". The General A regate Limit under D. the against that If Liability and Medical Expenses Limits of no other insurer defends, we will Insurance applies separately to each of undertake to do so, but we will be your projects" or each location listed in entitled to the insured's rights the Declarations. against all those other insurers. b. For purposes of the coverage provided by (c) When this insurance is excess this endorsement, the following definition over other Insurance, we will pay Is added to SECTION II - LIABILITY, F. only our share of the amount of Liability And Medical Expenses Definitions: the loss, if any, that exceeds the sum of:project" 1. "Your means: (1) The total amount that all such other insurance would pay for the loss in the absence of this insurance; and (if) The total of all deductible and self -insured amounts under all that other insurance. We will share the remaining loss, if any, with any other insurance that is not described in this Excess Insurance provision and was not bought specifically to apply in excess of the Limits of Insurance shown in the Declarations of this Coverage Part. (3) Method of Sharing If all of the other insurance permits contribution by equal shares, we will follow this method also. Under this approach, each insurer contributes equal amounts until it has paid its applicable limit of insurance or none of the loss remains, whichever comes first. If any of the other insurance does not permit contribution by equal shares, we will contribute by limits. Under this method, each insurer's share is based on the ratio of its applicable limit of insurance to the total applicable limits of insurance of all insurers. b. For the purposes of coverage provided under this endorsement, the following definition is added to SECTION II - a. Any premises, site or location at, on, or in which "your work" is not yet completed; and b. Does not include any location listed in the Declarations. 4. Damage to Premises Rented To You - Revised Limit SECTION II - LIABILITY, D. Liability And Medical Expenses Limits of Insurance. paragraph 4. is replaced by the following: 4. The most we will pay under Business Liability Coverage f or damages because of "property damage" to an one premises, while rented to you or while temporarily occupied by you with permission of the owner will be the greater of: a. $1,000,000; or b. The Limit of Insurance f or Damage to Premises Rented To You shown in the Declarations, 5. Limits of Insurance - Medical Expenses For purposes of the coverage provided by this endorsement, SECTION II - LIABILITY, D. Liability and Medical Expenses Limits of Insurance, paragraph 3. is replaced by the following: 3. Subject to the Liability and Medical Expenses Limits Limit, the most we will pay for all medical expenses because of bodily injury" sustained by any one person is $10,000 or the Medical Expenses limit shown in the Declarations, whichever is greater. 391-1448 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 16 of 17 Han! r Insurance Group_ 0132 H519876 0901120 6. Newly Acquired or Formed Organizations SECTION II - LIABILITY, C. Who is An Insured, paragraph 3. a. is replaced by the following: a. Coverage under this provision is afforded only until the 18011' day after you acquire or form the organization or the end of the policy period, whichever is earlier. 7. Nonowned Watercraft SECTION II - LIABILITY, B. Exclusions, 1. Applicable to Business Liability Coverage, g. Aircraft, Auto or Watercraft, (2) Aircraft (Other Than Unmanned Aircraft), paragraph (b) is replaced by the following: (b) A watercraft you do not own that is: (1) Less than 75 feet long; and (if) Not being used to carry persons or property for a charge. 8. Who is an Insured - Unnamed Joint Venture a. For purposes of the coverage provided by this endorsement, the final paragraph of SECTION 11 - LIABILITY, C. Who Is An Insured is replaced by the following: Unnamed Joint Venture No person or organization is an insured with respect to the conduct of any current or past partnership, joint venture or limited liability company that is not shown as a Named Insured in the Declarations. However, this does not apply to you. for your participation in any past or present "unnamed joint venture", or if that person or organization Is otherwise an additional insured under Additional Insureds - Unnamed Joint Venture below. b. For purposes of the coverage provided by this endorsement, the following is added to SECTION II - LIABILITY, C. Who is an Insured: Additional Insureds - Unnamed Joint Venture: You, as an insured for your participation in any past or present "unnamed joint venture". However, you are not an insured if the "unnamed joint venture" has: (1) Direct employees; or (2) Owns, rents, or leases any real or personal property. No other member or partner, or their spouses, of any past or present "unnamed joint venture" is an insured. c. For purposes of the coverage provided by this endorsement, the following definition is added to SECTION II - LIABILITY, F. Liability And Medical Expenses Definitions: 1. "Unnamed joint venture" means any joint venture in which you are a member or partner where: a. Each and every one of your co -ventures in that joint venture is an architectural, engineering or surveying firm; and b. That joint venture is not named in the Declarations. ALL OTHER TERMS, CONDITIONS, AND EXCLUSIONS REMAIN UNCHANGED. 391-1448 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 17 of 17 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. BUSINESSOWNERS LIABILITY SPECIAL BROADENING ENDORSEMENT This endorsement modifies insurance provided under the following: BUSINESSOWNERS COVERAGE FORM SUMMARY OF COVERAGES I Limits Page 1. Additional Insured by Contract, Agreement or Permit 2. Additional Insured- Broad Form Vendors Included Included 1 2 3. Alienated Premises Included 3 4. Broad Form Property Damage - Borrowed Equipment, Customers Goods and Use of Elevators Included 3 5. Incidental Malpractice (Employed Nurses, EMT's and Paramedics) Included 3 6. Personal and Advertising Injury - Broad Form Included 4 7. Product Recall Expense Included 4 Product Recall Expense Each Occurrence Limit $25 000 Occurrence 5 Product Recall Expense Aggregate Limit $50,000 Aggregate 5 Product Recall Deductible l $500 5 8. Unintentional Failure to Disclose Hazards Included 6 9. Unintentional Failure to Notify I Included 6 This endorsement amends coverages provided under the Businessowners Coverage Form through new coverages and broader coverage grants. This coverage is subject to the provisions applicable to the Businessowners Coverage Form, except as provided below. The following changes are made to SECTION II - LIABILITY: 1. Additional Insured by Contract, Agreement or Permit The following is added to SECTION li - LIABILITY, C. Who Is An Insured: Additional Insured by Contract, Agreement or Permit a. Any person or organization with whom you agreed in a written contract, written agreement or permit to add such person or organization as an additional insured on your policy is an additional insured only with respect to liability for "bodily injury" "property damage", or "personal and advertising injury' caused, in whole or in part, by your acts or omissions, or the acts or omissions of those acting on your behalf, but only with respect to: (1) "Your work" for the additional insured(s) designated in the contract, agreement or permit; (2) Premises you own, rent, lease or occupy; or (3) Your maintenance, operation or use of equipment leased to you. b. The insurance afforded to such additional insured described above: (1) Only applies to the extent permitted by law; and (2) Will not be broader than the insurance which you are required by the contract, agreement or permit to provide for such additional insured. (3) Applies on a primary basis if that is required by the written contract, written agreement or permit. (4) Will not be broader than coverage provided to any other insured. (5) Does not apply if the "bodily injury", "property damage" or "personal and advertising injury"is otherwise excluded from coverage under this Coverage Part, including any endorsements thereto. 391-1006 08 16 Includes copyrighted materlals of Insurance Services offices, Inc., with its permission, Page 1 of 6 ' Hanover Insurance Group. Oat H519876 0901120 c. This provision does not apply: (1) Unless the written contract or written agreement was executed or permit was issued prior to the "bodily injury", "property damage", or "personal injury and advertising injury", (2) To any person or organization included as an insured by another endorsement issued by us and made part of this Coverage Part. (3) To any lessor of equipment: (a) After the equipment lease expires; or (b) If the "bodily injury", "property damage", "personal and advertising injury" arises out of sole negligence of the lessor. (4) To any: (a) Owners or other interests from whom a. land has been leased if the "occurrence" takes place or the offense is committed after the lease for the land expires; or (b) Managers or lessors of premises if: (1) The "occurrence" takes place or the offense is committed after you cease to be a tenant in that premises; or (ii) The "bodily injury", "property damage", "personal Injury' or "advertising injury" arises out of structural alterations, new construction or demolition operations performed by or on behalf of the manager or lessor. (5) To "bodily injury", "property damage" or "personal and advertising injury" arising out of the rendering of or the failure to render any professional services. This exclusion applies even if the claims against any insured allege negligence or other wrongdoing in the supervision: hiring, employmen], training or monitoring of others by that insured, if the "occurrence" which caused the „bodily injury" or "property damage" or the offense which caused the "personal and advertising injury" involved the rendering of or f aiure to render any professional services by or for you. d. With respect to the insurance afforded to these additional insureds, the following is added to SECTION II - LIABILITY, D. Liability and Medical Expense Limits of Insurance: The most we will pay on behalf of the additional insured for a covered claim is the lesser of the amount of insurance: 1. Required by the contract, agreement or permit described in Paragraph a.; or 2. Available under the applicable Limits of Insurance shown in the Declarations. This endorsement shall not increase the applicable Limits of Insurance shown in the Declarations e. All other insuring agreements, exclusions, and conditions of the policy apply. 2. Additional Insured - Broad Form Vendors The following is added to SECTION If - LIABILITY, C. Who Is An Insured: Additional Insured - Broad Form Vendors Any person or organization that is a vendor with whom you agreed in a written contract or written agreement to include as an additional insured under this Coverage Part is an insured, but only with respect to liability for "bodily injury" or "property damage" arising out of "your products" which are distributed or sold in the regular course of the vendor's business. b. The insurance afforded to such vendor described above: (1) Only applies to the extent permitted by law; (2) Will not be broader than the insurance which you are required by the contract or agreement to provide for such vendor; (3) Will not be broader than coverage provided to any other insured; and (4) Roes not apply if the "bodily injury", "property damage" or "personal and advertising injury" is otherwise excluded from coverage under this Coverage Part, including any endorsements thereto c. With respect to insurance afforded to such vendors, the following additional exclusions apply: The insurance afforded to the vendor does not apply to: (1) "Bodily injury" or "property damage" for which the vendor is obligated to pay damages by reasons of the assumption of liability in a contract or agreement. This exclusion does not apply to liability for damages that the insured would have in the absence of the contract or agreement; (2) Any express warranty unauthorized by you; 391-1006 08 16 Includes copyrighted materials of Insurance Services Oflices, Inc., with its permission. Page 2 of 6 (3) Any physical or chemical change in the product made intentionally by the vendor; (4) Repackaging, unless unpacked solely for the purpose of inspection, demonstration, testing, or the substitution of parts under instruction from the manufacturer, and then repackaged in the original container; (5) Any failure to Snake such inspection, adjustments, tests or servicing as the vendor has agreed to make or normally undertakes to make in the usual course of business in connection with the sale of the product; (6) Demonstration, installation, servicing or repair operations, except such operations performed at the vendor's premises in connection with the sale of the product; (7) Products which, after distribution or sale by you, have been labeled or relabeled or used as a container, part or inggredient of any other thing or sul3stance by or for the vendor; (8) "Bodily injury" or "property damage" arising out of the sole negligence of the vendor for its own acts or omissions or those of its employees or anyone else acting on Its behalf. However, this exclusion does not apply to: (a) The exceptions contained within the exclusion in subparagraphs (4) or (6) above; or (b) Such inspections, adjustments, tests or servicing as the vendor has agreed to make or normally undertakes to make in the usual course of business, in connection with the distribution or sale of the products. (9) "Bodily injury" or "property damage" arising out of an "occurrence" that took place before you have signed the contract or agreement with the vendor. (10)To any person or organization included as an insured by another endorsement issued by us and made part of this Coverage Part. (11)Any insured person or organization, from whom you have acquired such products, or any ingredient, part or container, entering into, accompanying or containing such products. The most we will pay on behalf of the vendor for a covered claim is the lesser of the amount of insurance: 1. Required by the contract or agreement described in Paragraph a.; or 2. Available under the applicable Limits of Insurance shown in the Declarations; This endorsement shall not increase the applicable Limits of Insurance shown in the Declarations. 3. Alienated Premises SECTION 11 - LIABILITY, B. Exclusions, 1. Applicable To Business Liability Coverage k. Damage to Property, paragraph (2) is replaced by the following: (2) Premises you sell, give away or abandon, if the "property damage" arises out of any part of those premises and occurred from hazards that were known by you, or should have reasonably been known by you, at the time the property was transferred or abandoned. 4. Broad Form Property Damage - Borrowed Equipment, Customers Goods, Use of Elevators a. The following is added to SECTION II - LIABILITY, B. Exclusions, 1, Applicable To Business Liability Coverage, k. Damage to Property: Paragraph (4) does not apply to "property damage" to borrowed equipment while at a jobsite and not being used to perform operations. Paragraph (3), (4) and (6) do not apply to "property damage" to "customers goods" while on your premises nor to the use of elevators. b. For the purposes of this endorsement, the following definition is added to SECTION 11 - LIABILITY, F. Liability and Medical Expenses Definitions: 1. "Customers goods" means property of your customer on your premises for the purpose of being: a. Worked on; or b. Used in your manufacturing process. c. The insurance afforded under this provision is excess over any other valid and collectible property insurance (including deductible) available to the insured whether primary, excess, contingent or on any other basis. 5. Incidental Malpractice - Employed Nurses, EMTs and Paramedics d. With respect to the insurance afforded to SECTION 11 - LIABILITY, C. Who Is An Insured, these vendors, the following is added to paragraph 2.a.(1)(d) does not apply to a nurse, SECTION Il - LIABILITY, D. Liability and Medical Expense Limits of Insurance: 391-1006 08 16 Includes copyrighted materials of Insurance Services Offices, Inc., with its permission. Page 3 of 6 Hanover Insurance Croup. OB21-1519876 0901120 emergency medical technician or paramedic o. Recall of Products, Work or Impaired employed by you if you are not engaged In the Properly is replaced by the following: business or occupation of providing medical, o. Recall of Products, Work or Impaired paramedical, surgical, dental, x-ray or nursing Property services. 6. Personal Injury - Broad Form Damages claimed for any loss, cost or expense incurred by you or others for a. SECTION II - LIABILITY, B. Exclusions, 2. the loss of use, withdrawal, recall, Additional Exclusions Applicable only to inspection, repair, replacement, "Personal and Advertising Injury", paragraph adjustment, removal or disposal of: e. is deleted. (1) "Your product"; b. SECTION II - LIABILITY, F. Liability and "Personal (2) "Your work"; or Medical Expenses Definitions, 14. and advertising injury", paragraph b. is (3) "Impaired property"; replaced by the following: If such product, work or property is b. Malicious prosecution or abuse of withdrawn or recalled from the market or process. from use by any person or organization c. The following is added to SECTION 11 - because of a known or suspected defect, deficiency, inadequacy or dangerous LIABILITY, F. Liability and Medical Expenses condition in it, but this exclusion does Definitions, Definition 14. "Personal and advertising injury": not apply to product recall expenses' "covered that you incur for the recall" of "Discrimination" (unless insurance thereof is "your product". prohibited by law) that results in injury to the feelings or reputation of a natural person, However, the exception to the exclusion "product but only if such "discrimination" is: does not apply to recall expenses" resulting from: (1) Not done intentionally by or at the direction of: (4) Failure of any products to accomplish their intended purpose; (a) The insured; (5) Breach of warranties of fitness, (b) Any officer of the corporation, quality, durability or performance; director, stockholder, partner or member of the insured; and (6) Loss of customer approval, or any cost incurred to regain customer (2) Not directly or indirectly related to an approval; "employee". not to the employment, prospective employment or termination (7) Redistribution or replacement of "your of any person or persons by an insured. product" which has been recalled by like products or d. For purposes of this endorsement, the substitutes; following definition is added to SECTION 11 - (g) Caprice or whim of the insured; LIABILITY, F. Liability and Medical Expenses Definitions: (9) A condition likely to cause loss of 1. "Discrimination" means the unlawful which any insured knew or had reason to know at the inception of treatment of individuals based upon race, this insurance; color, ethnic origin, gender, religion, age, or sexual preference. "Discrimination" (10)Asbestos, including loss, damage or does not include the unlawful treatment clean up resulting from asbestos or of individuals based upon developmental, asbestos containing materials; or physical, cognitive, mental, sensory or (11)Recall of "your products" that have emotional impairment or any no known or suspected defect solely combination of these. because a known or suspecled e. This coverage does not apply it liability defect in another of "your products" coverage for "personal and advert€sing has been found. injury" is excluded either by the provisions of b. The following is added to SECTION 11 - the Coverage Form of any endorsement h ra LIABILITY, C. Who Is An Insured, paragraph [hereto. 3.b.: 7. Product Recall Expense "Product recall expense" arising out of any a. SECTION II - LIABILITY, B. Exclusions, 1. withdrawal or recall that occurred before you Applicable To Business Liability Coverage, acquired or formed the organization. 391-1006 08 16 Includes copyrighted materials of Insurance Services Offices, Inc., with its permission. Page 4 of 6 C. The following is added to SECTION II - LIABILITY, D. Liability and Medical Expenses Limits of Insurance: Product Recall Expense Limits of Insurance a. The Limits of Insurance shown in the SUMMARY OF COVERAGES of this endorsement and the rules stated below fix the most that we will pay under this Product Recall Expense Coverage regardless of the number of: (1) Insureds; (2) "Covered Recalls" initiated; or (3) Number of "your products" withdrawn. b. The Product Recall Expense Aggregate Limit is the most that we will reimburse you for the sum of all "product recall expenses" incurred for all "covered recalls" initiated during the policy period. c. The Product Recall Each Occurrence Limit is the most we will pay in connection with any one defect or deficiency. d. All "product recall expenses" in connection with substantially the same general harmful condition will be deemed to arise out of the same defect or deficiency and considered one "occurrence". e. Any amount reimbursed for "product recall expenses" in connection with any one "occurrence" will reduce the amount of the Product Recall Expense Aggregate Limit available for reimbursement of "product recall expenses" in connection with any other defect or deficiency. f. If the Product Recall Expense Aggregate Limit has been reduced by reimbursement of "product recall expenses" to an amount that is less than the Product Recall Expense Each Occurrence Limit, the remaining Aggregate Limit is the most that will be available for reimbursement of "product recall expenses" in connection with any other defect or deficiency. g. Product Recall Deductible We will only pay for the amount of "product recall expenses" which are in excess of the $500 Product Recall Deductible. The Product Recall Deductible applies separately to each "covered recall". The limits of insurance will not be reduced by the amount of this deductible. We may, or will if required by law, pay all or any part of any deductible amount; if applicable. Upon notice of our payment of a deductible amount, you shall promptly reimburse us for the part of the deductible amount we paid. The Product Recall Expense Limits of Insurance apply separately to each consecutive annual period and to any remaining period of less than 12 months, starting with the beginning of the policy period shown in the Declarations, unless the policy period is extended after issuance for an additional period of less than 12 months. In that case, the additional period will be deemed part of the last preceding period for the purposes of determining the Limits of Insurance. d. The following is added to SECTION II - LIABILITY, E. Liability and Medical Expense General Conditions, 2. Duties In the Event of Occurrence, Offense, Claim or Suit: You must see to it that the following are done in the event of an actual or anticipated "covered recall" that may result in "product recall expense": (1) Give us prompt notice of any discovery or notification that "your product" must be withdrawn or recalled. Include a description of "your product" and the reason for the withdrawal or recall; (2) Cease any further release, shipment, consignment or any other method of distribution of like or similar products until it has been determined that all such products are free from defects that could be a cause of loss under this insurance, e. For the purposs of this endorsement, the following definitions are added to SECTION II - LIABILITY, F. Liability and Medical Expenses Definitions: 1. "Covered recall" means a recall made necessary because you or a government body has determined that a known or suspected defect, deficiency, inadequacy. or dangerous condition in "your product" has resulted or will result in "bodily injury" or "property damage". 2. "Product recall expense(s)" means: a. Necessary and reasonable expenses for: (1) Communications, including radio or television announcements or printed advertisements including stationary, envelopes and postage; 391-1006 08 16 Includes copyrighted materials of Insurance Services Offices, Inc., with its permission. Page 5 of 6 �i1r Hanauer Insturance GM)1Lp- OB2 H519876 0901120 (2) Shipping the recalled products from any purchaser, distributor or user to the place or places designated by you; (3) Remuneration paid to your regular "employees" for necessary overtime; (4) Hiring additional persons, other than your regular "employees"; (5) Expenses incurred by "employees" including transportation and accommodations; (1) If the "products - completed operations hazard" is excluded front coverage under this Coverage Part including any endorsement thereto; or (2) To "product retail expense" arising out of any of "your products" that are otherwise excluded from coverage under this Coverage Part including endorsements thereto. 8. Unintentional Failure to Disclose Hazards (6) Expenses to rent additional warehouse or storage space; (7) Disposal of "your product", but only to the extent that specific methods of destruction other than those employed for trash discarding or disposal are g, required to avoid "bodily injury" or "property damage" as a result of such disposal, you incur exclusively for the purpose of recalling "your product"; and b. Your lost profit resulting from such "covered recall". f. This Product Recall Expense Coverage does not apply: The following is added to SECTION II - LIABILITY, E. Liability and Medical Expenses General Conditions: Representations We will not disclaim coverage under this Coverage Part if you fail to disclose all hazards existing as of the inception date of the policy provided such failure is not intentional. Unintentional Failure to Notify The following is added to SECTION II - LIABILITY, E. Liability and Medical Expenses General Conditions, 2. Duties in the Event of Occurrence, Offense, Claim or Suit: Your rights afforded under this Coverage Part shall not be prejudiced if you fail to give us notice of an "occurrence", offense, claim or "suit", solely due to your reasonable and documented belief that the "bodily injury", "property damage" or "personal and advertising injury" is not covered under this Policy. ALL OTHER TERMS, CONDITIONS, AND EXCLUSIONS REMAIN UNCHANGED. 391-1006 08 16 Includes copyrighted materials of Insurance Services Offices, Inc., with its permission. Page 6 of 6 THIS ENDORSMENT CHANGES THE POLICY, PLEASE READ IT CAREFULLY. ASBESTOS LIABILITY EXCLUSION This endorsement modifies insurance provided under the following: BUSINESSOWNERS COVERAGE FORM This insurance does not apply to "bodily injury", "property damage" or "personal and advertising injury" arising out of any actual or alleged: 1. Inhaling, ingesting or prolonged physical exposure by any person to asbestos or asbestos fibers or goods or products containing asbestos; 2. Use of asbestos in constructing or manufacturing any good, product or structure; 3. Intentional or accidental removal including encapsulation, dispersal, sealing or disposal of asbestos or asbestos fibers from any good, product or structure; 4. Manufacture, transportation, storage or disposal of asbestos or goods or products containing asbestos; 5. Product manufactured, sold, handled or distributed by or on behalf of the insured which contain asbestos; or 6. Acts or omissions of the insured in connection with the general supervision of any job involving the removal, enclosure, encapsulation, dispersal, sealing or disposal of asbestos, asbestos fifers or products containing asbestos. General supervision includes the rendering of or failure to render any instructions, recommendations, warnings or advice. Includes copyrighted material of Insurance Services Office, Inc. 1997,2001 421-0022 (7/02) Page 1 of 1 Hanover Insurance Group. OB2 HS 19876 0901120 NOTICE If a claim is filed on the insured property, information on the claim may be given to the Prop- erty Insurance Loss Register (PILR) for use by insurance companies in investigating that claim as well as other claims for loss on the property. Information which may be given to PILR in- cludes name, age and sex, current and previous addresses, loss location, insurance policy information, cause of loss, type of property, and identification of others who have an interest in the property or who are involved in the claimed loss. Such information may be collected by an insurer or an adjuster from you, your spouse, others who have an interest in the prop- erty, those who are involved in the claimed loss, and fire department personnel. Information on you may be given by PILR to insurance companies which subscribe to its services. On request, PILR will tell you whether it has information on you, will let you see and copy such information (in person or by mail), and will give you the nature and substance of such infor- mation by telephone. PILR may charge a reasonable fee for copies of information provided. If you think information on you is incomplete or inaccurate, you may request PILR to make corrections. PILR will then investigate and: (1) give your correction to subscribers who pre- viously received such information; or (2) inform you that it refuses to make your correction and give you its reasons. If PILR refuses to make your correction, you can have a statement of the reasons for your disagreement placed in PILR; and all subscribers who received or will re- ceive information on you will also receive a copy of the statement. Information on your claim will normally be stored by PILR for five years. Inquiries to PILR should be addressed: Property Insurance Loss Register 700 New Brunswick Avenue Rahway, New Jersey 07065 231-0475 (6-89) Hanauer Insurance• i:rn1iP.. AW21­1519887 09011e BUSINESS AUTO COVERAGE FORM Various provisions in this policy restrict coverage. Read the entire policy carefully to determine rights, duties and what is and is not covered. Throughout this policy the words "you" and "your" refer to the Named Insured shown in the Declara- tions. The words "we", "us" and "our" refer to the Company providing this insurance. Other words and phrases that appear in quotation marks have special meaning. Refer to Section V - Definitions. SECTION I - COVERED AUTOS Item Two of the Declarations shows the "autos" that are covered "autos" for each of your cover- ages. The following numerical symbols describe the "autos" that may be covered "autos". The sym- bols entered next to a coverage on the Declara- tions designate the only "autos" that are covered "autos". A. Description Of Covered Auto Designation Symbols Symbol Description Of Covered Auto Designation Symbols 1 An "Auto" 2 Owned "Autos" Only those "autos" you own (and for Liability Coverage any "trailers" you don't Only own while attached to power units you own). This includes those "autos" you acquire ownership of after the policy begins. 3 Owned Private Only the private passenger "autos" you own. This includes those private pas - Passenger senger "autos" you acquire ownership of after the policy begins. "Autos" Only 4 Owned "Autos" Only those "autos" you own that are not of the private passenger type (and for Other Than Pri- Liability Coverage any "trailers" you don't own while attached to power units vate Passenger you own). This includes those "autos" not of the private passenger type you "Autos" Only acquire ownership of after the policy be ins. 5 Owned "Autos" Only those "autos" you own that are required to have No -Fault benefits in the Subject To No- state where they are licensed or principally garaged. This includes those Fault "autos" you acquire ownership of after the policy begins provided they are re- quired to have No -Fault benefits in the state where they are licensed or princi- pally garaged. 6 Owned "Autos" Only those "autos" you own that because of the law in the state where they Subject To A are licensed or principally garaged are required to have and cannot reject Compulsory Uninsured Motorists Coverage. This includes those "autos" you acquire own - Uninsured Mo- ership of after the policy begins provided they are subject to the same state torists Law uninsured motorists requirement. 7 Specifically De- Only those "autos" described in Item Three of the Declarations for which a scribed "Autos" premium charge is shown (and for Liability Coverage any "trailers" you don't own while attached to any power unit described in Item Three). 8 Hired "Autos" Only those "autos" you lease, hire, rent or borrow. This does not include any Only "auto" you lease, hire, rent, or borrow from any of your "employees", partners (if you are a partnership), members (if you are a limited liability company) or members of their households- 9 Nonowned Only those "autos" you do not own, lease, hire, rent or borrow that are used in "Autos" Only connection with your business. This includes "autos" owned by your "employ- ees", partners (if you are a partnership), members (if you are a limited liability company), or members of their households but only while used in your busi- ness or your personal affairs. CA 00 01 03 06 Copyright, ISO Properties, Inc., 2005 Page 1 of 12 19 Mobile Equip- Only those "autos" that are land vehicles and that would qualify under the ment Subject definition of "mobile equipment" under this policy if they were not subject to a To Compulsory compulsory or financial responsibility law or other motor vehicle insurance law Or Financial where they are licensed or principally garaged. Responsibility Or Other Motor Vehicle Insur- ance Law Only B. Owned Autos You Acquire After The Policy Begins 1. If Symbols 1, 2, 3, 4, 5, 6 or 19 are entered next to a coverage in Item Two of the Decla- rations, then you have coverage for "autos" that you acquire of the type described for the remainder of the policy period. 2. But, if Symbol 7 is entered next to a cover- age in Item Two of the Declarations, an "auto" you acquire will be a covered "auto" for that coverage only if: a. We already cover all "autos" that you own for that coverage or it replaces an "auto" you previously owned that had that cov- erage; and b. You tell us within 30 days after you ac- quire it that you want us to cover it for that coverage. C. Certain Trailers, Mobile Equipment And Temporary Substitute Autos If Liability Coverage is provided by this Cover- age Form, the following types of vehicles are also covered "autos" for Liability Coverage: 1. "Trailers" with a load capacity of 2,000 pounds or less designed primarily for travel on public roads. 2. "Mobile equipment' while being carried or towed by a covered "auto". 3. Any "auto" you do not own while used with the permission of its owner as a temporary substitute for a covered "auto" you own that is out of service because of its: a. Breakdown; b. Repair; c. Servicing; d. "Loss"; or e. Destruction. SECTION 11 - LIABILITY COVERAGE A. Coverage We will pay all sums an "insured" legally must pay as damages because of "bodily injury" or "property damage" to which this insurance ap- plies, caused by an "accident" and resulting from the ownership, maintenance or use of a covered "auto". We will also pay all sums an "insured" legally must pay as a "covered pollution cost or ex- pense" to which this insurance applies, caused by an "accident' and resulting from the owner- ship, maintenance or use of covered "autos". However, we will only pay for the "covered pol- lution cost or expense" if there is either "bodily injury" or "property damage" to which this in- surance applies that is caused by the same "accident". We have the right and duty to defend any "in- sured" against a "suit' asking for such damages or a "covered pollution cost or expense". How- ever, we have no duty to defend any "insured" against a "suit' seeking damages for "bodily injury" or "property damage" or a "covered pollution cost or expense" to which this insur- ance does not apply. We may investigate and settle any claim or "suit' as we consider appro- priate. Our duty to defend or settle ends when the Liability Coverage Limit of Insurance has been exhausted by payment of judgments or settlements. 1. Who Is An Insured The following are "insureds a. You for any covered "auto". b. Anyone else while using with your per- mission a covered "auto" you own, hire or borrow except: (1) The owner or anyone else from whom you hire or borrow a covered "auto". This exception does not apply if the covered "auto" is a "trailer" connected to a covered "auto" you own. Page 2 of 12 Copyright, ISO Properties, Inc., 2005 CA 00 01 03 06 Hanauer Insurance GrouP.. AW21­1519887 090112 (2) Your "employee" if the covered "auto" is owned by that "employee" or a member of his or her household. (3) Someone using a covered "auto" while he or she is working in a busi- ness of selling, servicing, repairing, parking or storing "autos" unless that business is yours. (4) Anyone other than your "employees", partners (if you are a partnership), members (if you are a limited liability company), or a lessee or borrower or any of their "employees", while mov- ing property to or from a covered "auto". (5) A partner (if you are a partnership), or a member (if you are a limited liability company) for a covered "auto" owned by him or her or a member of his or her household, c. Anyone liable for the conduct of an "in- sured" described above but only to the extent of that liability. 2. Coverage Extensions a. Supplementary Payments We will pay for the "insured": (1) All expenses we incur, (2) Up to $2,000 for cost of bail bonds (in- cluding bonds for related traffic law violations) required because of an "accident" we cover. We do not have to furnish these bonds. (3) The cost of bonds to release attach- ments in any "suit" against the "in- sured" we defend, but only for bond amounts within our Limit of Insurance. (4) All reasonable expenses incurred by the "insured" at our request, including actual loss of earnings up to $250 a day because of time off from work. (5) All costs taxed against the "insured" in any "suit" against the "insured" we defend. (6) All interest on the full amount of any judgment that accrues after entry of the judgment in any "suit" against the "insured" we defend, but our duty to pay interest ends when we have paid, offered to pay or deposited in court the part of the judgment that is within our Limit of Insurance. These payments will not reduce the Limit of Insurance. b. Out -Of -State Coverage Extensions While a covered "auto" is away from the state where it is licensed we will: (1) Increase the Limit of Insurance for Li- ability Coverage to meet the limits specified by a compulsory or financial responsibility law of the jurisdiction where the covered "auto" is being used. This extension does not apply to the limit or limits specified by any law governing motor carriers of passen- gers or property. (2) Provide the minimum amounts and types of other coverages, such as no- fault, required of out-of-state vehicles by the jurisdiction where the covered "auto" is being used. We will not pay anyone more than once for the same elements of loss because of these extensions. B. Exclusions This insurance does not apply to any of the fol- lowing: 1. Expected Or Intended Injury "Bodily injury" or "property damage" ex- pected or intended from the standpoint of the "insured". 2. Contractual Liability assumed under any contract or agreement. But this exclusion does not apply to liability for damages: a. Assumed in a contract or agreement that is an "insured contract" provided the "bodily injury" or "property damage" oc- curs subsequent to the execution of the contract or agreement; or b. That the "insured" would have in the ab- sence of the contract or agreement. 3. Workers' Compensation Any obligation for which the "insured" or the "insureds" insurer may be held liable under any workers' compensation, disability bene- fits or unemployment compensation law or any similar law. 4. Employee Indemnification And Employer's Liability "Bodily injury" to: a. An "employee" of the "insured" arising out of and in the course of: (1) Employment by the "insured"; or CA 00 01 03 06 Copyright, ISO Properties, Inc., 2005 Page 3 of 12 (2) Performing the duties related to the conduct of the "insured's" business; or b. The spouse, child, parent, brother or sis- ter of that "employee" as a consequence of Paragraph a. above. This exclusion applies: (1) Whether the "insured" may be liable as an employer or in any other capac- ity; and (2) To any obligation to share damages with or repay someone else who must pay damages because of the injury. But this exclusion does not apply to "bodily injury" to domestic "employees" not entitled to workers' compensation benefits or to li- ability assumed by the "insured" under an "insured contract". For the purposes of the Coverage Form, a domestic "employee" is a person engaged in household or domestic work performed principally in connection with a residence premises. 5. Fellow Employee "Bodily injury" to any fellow "employee" of the "insured" arising out of and in the course of the fellow "employee's" employment or while performing duties related to the con- duct of your business. 6. Care, Custody Or Control "Property damage" to or "covered pollution cost or expense" involving property owned or transported by the "insured" or in the "in- sured's" care, custody or control. But this exclusion does not apply to liability assumed under a sidetrack agreement. 7. Handling Of Property "Bodily injury" or "property damage" result- ing from the handling of property: a. Before it is moved from the place where it is accepted by the "insured" for move- ment into or onto the covered "auto"; or b. After it is moved from the covered "auto" to the place where it is finally delivered by the "insured". 8. Movement Of Property By Mechanical Device "Bodily injury" or "property damage" result- ing from the movement of property by a me- chanical device (other than a hand truck) unless the device is attached to the covered "auto". 9. Operations "Bodily injury" or "property damage" arising out of the operation of: a. Any equipment listed in Paragraphs 6.b. and 6.c. of the definition of "mobile equipment"; or b. Machinery or equipment that is on, at- tached to, or part of, a land vehicle that would qualify under the definition of "mo- bile equipment" if it were not subject to a compulsory or financial responsibility law or other motor vehicle insurance law where it is licensed or principally ga- raged. 10. Completed Operations "Bodily injury" or "property damage" arising out of your work after that work has been completed or abandoned. In this exclusion, your work means: a. Work or operations performed by you or on your behalf; and b. Materials, parts or equipment furnished in connection with such work or opera- tions. Your work includes warranties or represen- tations made at any time with respect to the fitness, quality, durability or performance of any of the items included in Paragraph a. or b. above. Your work will be deemed completed at the earliest of the following times: (1) When all of the work called for in your contract has been completed. (2) When all of the work to be done at the site has been completed if your con- tract calls for work at more than one site. (3) When that part of the work done at a job site has been put to its intended use by any person or organization other than another contractor or sub- contractor working on the same proj- ect. Work that may need service, maintenance, correction, repair or replacement, but which is otherwise complete, will be treated as completed. 11. Pollution "Bodily injury" or "property damage" arising out of the actual, alleged or threatened dis- charge, dispersal, seepage, migration, re- lease or escape of "pollutants": a. That are, or that are contained in any property that is: Page 4 of 12 Copyright, ISO Properties, Inc., 2005 CA 00 01 03 06 (1) Being transported or towed by, han- dled, or handled for movement into, onto or from, the covered "auto"; (2) Otherwise in the course of transit by or on behalf of the "insured"; or (3) Being stored, disposed of, treated or processed in or upon the covered '"auto"; b. Before the "pollutants" or any property in which the "pollutants" are contained are moved from the place where they are ac- cepted by the "insured" for movement into or onto the covered "auto": or c. After the "pollutants" or any property in which the "pollutants" are contained are moved from the covered "auto" to the place where they are finally delivered, disposed of or abandoned by the "in- sured". Paragraph a. above does not apply to fuels, lubricants, fluids, exhaust gases or other similar "pollutants" that are needed for or result from the normal electrical, hydraulic or mechanical functioning of the covered "auto" or its parts, if: (1) The "pollutants" escape, seep, mi- grate, or are discharged, dispersed or released directly from an "auto" part designed by its manufacturer to hold, store, receive or dispose of such '"pollutants"; and (2) The "bodily injury", "property damage" or "covered pollution cost or expense" does not arise out of the operation of any equipment listed in Paragraphs 6.b. and 6.c. of the definition of "mo- bile equipment". Paragraphs b. and c. above of this exclusion do not apply to "accidents" that occur away from premises owned by or rented to an "in- sured" with respect to "pollutants" not in or upon a covered "auto" if: (1) The "pollutants" or any property in which the "pollutants" are contained are upset, overturned or damaged as a result of the maintenance or use of a covered "auto"; and (2) The discharge, dispersal, seepage, migration, release or escape of the "pollutants" is caused directly by such upset, overturn or damage. 12. War Hanauer Insurance Group... AW2H519887 090112, a. War, including undeclared or civil war; b. Warlike action by a military force, includ- ing action in hindering or defending against an actual or expected attack, by any government, sovereign or other authority using military personnel or other agents; or c. Insurrection, rebellion, revolution, usurped power, or action taken by gov- ernmental authority in hindering or de- fending against any of these. 13. Racing Covered "autos" while used in any profes- sional or organized racing or demolition contest or stunting activity, or while practic- ing for such contest or activity. This insur- ance also does not apply while that covered "auto" is being prepared for such a contest or activity. C. Limit Of Insurance Regardless of the number of covered "autos", "insureds", premiums paid, claims made or ve- hicles involved in the "accident", the most we will pay for the total of all damages and "cov- ered pollution cost or expense" combined, re- sulting from any one "accident" is the Limit of Insurance for Liability Coverage shown in the Declarations. All "bodily injury", "property damage" and "cov- ered pollution cost or expense" resulting from continuous or repeated exposure to substan- tially the same conditions will be considered as resulting from one "accident". No one will be entitled to receive duplicate payments for the same elements of "loss" under this Coverage Form and any Medical Payments Coverage Endorsement, Uninsured Motorists Coverage Endorsement or Underinsured Motor- ists Coverage Endorsement attached to this Coverage Part. SECTION III - PHYSICAL DAMAGE COVERAGE A. Coverage 1. We will pay for "loss" to a covered "auto" or its equipment under: a. Comprehensive Coverage From any cause except: (1) The covered "auto's" collision with another object; or (2) The covered "auto's" overturn. b. Specified Causes Of Loss Coverage "Bodily injury" or "property damage" arising Caused by: directly or indirectly out of: (1) Fire, lightning or explosion; CA 00 01 03 06 Copyright, ISO Properties, Inc., 2005 Page 5 of 12 (2) Theft; (3) Windstorm, hail or earthquake; (4) Flood; (5) Mischief or vandalism; or (6) The sinking, burning, collision or de- railment of any conveyance trans- porting the covered "auto". c. Collision Coverage Caused by: (1) The covered "auto's" collision with another object; or (2) The covered "auto's" overturn. 2. Towing We will pay up to the limit shown in the Declarations for towing and labor costs in- curred each time a covered "auto" of the pri- vate passenger type is disabled. However, the labor must be performed at the place of disablement. 3. Glass Breakage - Hitting A Bird Or Animal - Falling Objects Or Missiles If you carry Comprehensive Coverage for the damaged covered "auto", we will pay for the following under Comprehensive Coverage: a. Glass breakage; b. "Loss" caused by hitting a bird or animal; and c. "Loss" caused by falling objects or mis- siles. However, you have the option of having glass breakage caused by a covered "auto's" collision or overturn considered a "loss" under Collision Coverage. 4. Coverage Extensions a. Transportation Expenses We will pay up to $20 per day to a maxi- mum of $600 for temporary transportation expense incurred by you because of the total theft of a covered "auto" of the pri- vate passenger type. We will pay only for those covered "autos" for which you carry either Comprehensive or Specified Causes of Loss Coverage. We will pay for temporary transportation expenses in- curred during the period beginning 48 hours after the theft and ending, regard- less of the policy's expiration, when the covered "auto" is returned to use or we pay for its "loss". b. Loss Of Use Expenses For Hired Auto Physical Damage, we will pay expenses for which an "insured" be- comes legally responsible to pay for loss of use of a vehicle rented or hired without a driver, under a written rental contract or agreement. We will pay for loss of use expenses if caused by: (1) Other than collision only if the Decla- rations indicate that Comprehensive Coverage is provided for any covered "auto"; (2) Specified Causes Of Loss only if the Declarations indicate that Specified Causes Of Loss Coverage is provided for any covered "auto"; or (3) Collision only if the Declarations indi- cate that Collision Coverage is pro- vided for any covered "auto". However, the most we will pay for any expenses for loss of use is $20 per day, to a maximum of $600. B. Exclusions 1. We will not pay for "loss" caused by or re- sulting from any of the following. Such "loss" is excluded regardless of any other cause or event that contributes concurrently or in any sequence to the "loss". a. Nuclear Hazard (1) The explosion of any weapon em- ploying atomic fission or fusion; or (2) Nuclear reaction or radiation, or ra- dioactive contamination, however caused. b. War Or Military Action (1) War, including undeclared or civil war; (2) Warlike action by a military force, in- cluding action in hindering or defend- ing against an actual or expected at- tack, by any government, sovereign or other authority using military person- nel or other agents; or (3) Insurrection, rebellion, revolution, usurped power or action taken by governmental authority in hindering or defending against any of these. Page 6 of 12 Copyright, ISO Properties, Inc., 2005 CA 00 01 03 06 2. We will not pay for "loss" to any covered "auto" while used in any professional or or- ganized racing or demolition contest or stunting activity, or while practicing for such contest or activity. We will also not pay for "loss" to any covered "auto" while that cov- ered "auto" is being prepared for such a contest or activity. 3. We will not pay for "loss" caused by or re- sulting from any of the following unless caused by other "loss" that is covered by this insurance: a. Wear and tear, freezing, mechanical or electrical breakdown. Ill Blowouts, punctures or other road dam- age to tires. 4. We will not pay for "loss" to any of the fol- lowing: a. Tapes, records, discs or other similar audio, visual or data electronic devices designed for use with audio, visual or data electronic equipment. b. Any device designed or used to detect speed measuring equipment such as ra- dar or laser detectors and any jamming apparatus intended to elude or disrupt speed measurement equipment. c. Any electronic equipment, without regard to whether this equipment is permanently installed, that receives or transmits audio, visual or data signals and that is not designed solely for the reproduction of sound. d. Any accessories used with the electronic equipment described in Paragraph c. above. Exclusions 4.c. and 4.d. do not apply to: a. Equipment designed solely for the repro- duction of sound and accessories used with such equipment, provided such equipment is permanently installed in the covered "auto" at the time of the "loss" or such equipment is removable from a housing unit which is permanently in- stalled in the covered "auto" at the time of the "loss", and such equipment is de- signed to be solely operated by use of the power from the "auto's" electrical system, in or upon the covered "auto"; or b. Any other electronic equipment that is: (1) Necessary for the normal operation of the covered "auto" or the monitoring of the covered "auto's" operating system; or Ha" nover Insunnct, Crollp_ AMH51087 090112r (2) An integral part of the same unit housing any sound reproducing equipment described in Paragraph a. above and permanently installed in the opening of the dash or console of the covered "auto" normally used by the manufacturer for installation of a radio. 5. We will not pay for "loss" to a covered "auto" due to "diminution in value". C. Limit Of Insurance 1. The most we will pay for "loss" in any one "accident" is the lesser of: a. The actual cash value of the damaged or stolen property as of the time of the "loss"; or b. The cost of repairing or replacing the damaged or stolen property with other property of like kind and quality. 2. An adjustment for depreciation and physical condition will be made in determining actual cash value in the event of a total "loss". 3. If a repair or replacement results in better than like kind or quality, we will not pay for the amount of the betterment. D. Deductible For each covered "auto", our obligation to pay for, repair, return or replace damaged or stolen property will be reduced by the applicable de- ductible shown in the Declarations. Any Com- prehensive Coverage deductible shown in the Declarations does not apply to "loss" caused by fire or lightning. SECTION IV - BUSINESS AUTO CONDITIONS The following conditions apply in addition to the Common Policy Conditions: A. Loss Conditions 1. Appraisal For Physical Damage Loss If you and we disagree on the amount of "loss", either may demand an appraisal of the "loss". In this event, each party will se- lect a competent appraiser. The two ap- praisers will select a competent and impar- tial umpire. The appraisers will state sepa- rately the actual cash value and amount of "loss". If they fail to agree, they will submit their differences to the umpire. A decision agreed to by any two will be binding. Each party will: a. Pay its chosen appraiser; and b. Bear the other expenses of the appraisal and umpire equally. CA 00 01 03 06 Copyright, ISO Properties, Inc., 2005 Page 7 of 12 If we submit to an appraisal, we will still re- tain our right to deny the claim. 2. Duties In The Event Of Accident, Claim, Suit Or Loss We have no duty to provide coverage under this policy unless there has been full compli- ance with the following duties: a. In the event of "accident", claim, "suit" or "loss", you must give us or our author- ized representative prompt notice of the "accident" or "loss". Include: (1) How, when and where the "accident" or "loss" occurred; (2) The "insured's" name and address; and (3) To the extent possible, the names and addresses of any injured persons and witnesses. b. Additionally, you and any other involved "insured" must: (1) Assume no obligation, make no pay- ment or incur no expense without our consent, except at the "insured's" own cost. (2) Immediately send us copies of any request, demand, order, notice, sum- mons or legal paper received con- cerning the claim or "suit". (3) Cooperate with us in the investigation or settlement of the claim or defense against the "suit". (4) Authorize us to obtain medical rec- ords or other pertinent information. (5) Submit to examination, at our ex- pense, by physicians of our choice, as often as we reasonably require. c. If there is "loss" to a covered "auto' or its equipment you must also do the follow- ing: (1) Promptly notify the police if the cov- ered "auto" or any of its equipment is stolen, (2) Take all reasonable steps to protect the covered "auto" from further dam- age. Also keep a record of your ex- penses for consideration in the set- tlement of the claim. (3) Permit us to inspect the covered "auto" and records proving the "loss" before its repair or disposition. (4) Agree to examinations under oath at our request and give us a signed statement of your answers. 3. Legal Action Against Us No one may bring a legal action against us under this Coverage Form until: a. There has been full compliance with all the terms of this Coverage Form; and b. Under Liability Coverage, we agree in writing that the "insured" has an obliga- tion to pay or until the amount of that ob- ligation has finally been determined by judgment after trial. No one has the right under this policy to bring us into an ac- tion to determine the "insured's" liability. 4. Loss Payment - Physical Damage Coverages At our option we may: a. Pay for, repair or replace damaged or stolen property; b. Return the stolen property, at our ex- pense, We will pay for any damage that results to the "auto" from the theft; or c. Take all or any part of the damaged or stolen property at an agreed or appraised value. If we pay for the "loss", our payment will in- clude the applicable sales tax for the dam- aged or stolen property. 5. Transfer Of Rights Of Recovery Against Others To Us If any person or organization to or for whom we make payment under this Coverage Form has rights to recover damages from another, those rights are transferred to us. That per- son or organization must do everything nec- essary to secure our rights and must do nothing after "accident" or "loss" to impair them. B. General Conditions 1. Bankruptcy Bankruptcy or insolvency of the "insured" or the "insured's" estate will not relieve us of any obligations under this Coverage Form, 2. Concealment, Misrepresentation Or Fraud This Coverage Form is void in any case of fraud by you at any time as it relates to this Coverage Form, It is also void if you or any other "insured", at any time, intentionally conceal or misrepresent a material fact con- cerning: a. This Coverage Form; Page 8 of 12 Copyright, ISO Properties, Inc., 2005 CA 00 01 03 06 b. The covered "auto"; c. Your interest in the covered "auto"; or d. A claim under this Coverage Form. 3. Liberalization If we revise this Coverage Form to provide more coverage without additional premium charge, your policy will automatically provide the additional coverage as of the day the re- vision is effective in your state. 4. No Benefit To Ballee - Physical Damage Coverages We will not recognize any assignment or grant any coverage for the benefit of any person or organization holding, storing or transporting property for a fee regardless of any other provision of this Coverage Form. 5. Other Insurance a. For any covered "auto" you own, this Coverage Form provides primary insur- ance. For any covered "auto" you don't own, the insurance provided by this Cov- erage Form is excess over any other collectible insurance. However, while a covered "auto" which is a "trailer" is con- nected to another vehicle, the Liability Coverage this Coverage Form provides for the "trailer" is: (1) Excess while it is connected to a mo- tor vehicle you do not own. (2) Primary while it is connected to a covered "auto" you own. b. For Hired Auto Physical Damage Cover- age, any covered "auto" you lease, hire, rent or borrow is deemed to be a covered "auto" you own. However, any "auto" that is leased, hired, rented or borrowed with a driver is not a covered "auto". c. Regardless of the provisions of Para- graph a. above, this Coverage Form's Li- ability Coverage is primary for any liabil- ity assumed under an "insured contract". d. When this Coverage Form and any other Coverage Form or policy covers on the same basis, either excess or primary, we will pay only our share. Our share is the proportion that the Limit of Insurance of our Coverage Form bears to the total of the limits of all the Coverage Forms and policies covering on the same basis. 4Hanover Insurance Croup_ AW21­1519887 090112' 6. Premium Audit a. The estimated premium for this Coverage Form is based on the exposures you told us you would have when this policy be- gan. We will compute the final premium due when we determine your actual ex- posures. The estimated total premium will be credited against the final premium due and the first Named Insured will be billed for the balance, if any. The due date for the final premium or retrospec- tive premium is the date shown as the due date on the bill. If the estimated total premium exceeds the final premium due, the first Named insured will get a refund. b. If this policy is issued for more than one year, the premium for this Coverage Form will be computed annually based on our rates or premiums in effect at the be- ginning of each year of the policy. 7. Policy Period, Coverage Territory Under this Coverage Form, we cover "acci- dents" and "losses" occurring: a. During the policy period shown in the Declarations; and b. Within the coverage territory. The coverage territory is: a. The United States of America; b. The territories and possessions of the United States of America; c. Puerto Rico; d. Canada; and e. Anywhere in the world if: (1) A covered "auto" of the private pas- senger type is leased, hired, rented or borrowed without a driver for a period of 30 days or less; and (2) The "insured's" responsibility to pay damages is determined in a "suit" on the merits, in the United States of America, the territories and posses- sions of the United States of America, Puerto Rico, or Canada or in a settle- ment we agree to. We also cover "loss" to, or "accidents" in- volving, a covered "auto" while being trans- ported between any of these places. CA 00 01 03 06 Copyright, ISO Properties, Inc., 2005 Page 9 of 12 8. Two Or More Coverage Forms Or Policies Issued By Us If this Coverage Form and any other Cover- age Form or policy issued to you by us or any company affiliated with us apply to the same "accident", the aggregate maximum Limit of Insurance under all the Coverage Forms or policies shall not exceed the high- est applicable Limit of Insurance under any one Coverage Form or policy. This condition does not apply to any Coverage Form or policy issued by us or an affiliated company specifically to apply as excess insurance over this Coverage Form. SECTION V - DEFINITIONS A. "Accident" includes continuous or repeated ex- posure to the same conditions resulting in "bodily injury" or "property darnage". B. "Auto" means: 1. A land motor vehicle, "trailer" or semitrailer designed for travel on public roads; or 2. Any other land vehicle that is subject to a compulsory or financial responsibility law or other motor vehicle insurance law where it is licensed or principally garaged. However, "auto" does not include "mobile equipment". C. "Bodily injury" means bodily injury, sickness or disease sustained by a person including death resulting from any of these. D. "Covered pollution cost or expense" means any cost or expense arising out of: 1. Any request, demand, order or statutory or regulatory requirement that any "insured" or others test for, monitor, clean up, remove, contain, treat, detoxify or neutralize, or in any way respond to, or assess the effects of "pollutants"; or 2. Any claim or "suit" by or on behalf of a gov- ernmental authority for damages because of testing for, monitoring, cleaning up, remov- ing, containing, treating, detoxifying or neu- tralizing, or in any way responding to or as- sessing the effects of "pollutants". "Covered pollution cost or expense" does not include any cost or expense arising out of the actual, alleged or threatened discharge, disper- sal, seepage, migration, release or escape of '"pollutants": a. That are, or that are contained in any property that is: (1) Being transported or towed by, han- dled, or handled for movement into, onto or from the covered "auto"; (2) Otherwise in the course of transit by or on behalf of the "insured"; (3) Being stored, disposed of, treated or processed in or upon the covered "auto"; b. Before the "pollutants" or any property in which the "pollutants" are contained are moved from the place where they are ac- cepted by the "insured" for movement into or onto the covered "auto"; or c. After the "pollutants" or any property in which the "pollutants" are contained are moved from the covered "auto" to the place where they are finally delivered, disposed of or abandoned by the "in- sured" Paragraph a. above does not apply to fuels, lubricants, fluids, exhaust gases or other similar "pollutants" that are needed for or result from the normal electrical, hydraulic or mechanical functioning of the covered ..auto" or its parts, if: (1) The "pollutants" escape, seep, mi- grate, or are discharged, dispersed or released directly from an "auto" part designed by its manufacturer to hold, store, receive or dispose of such "pollutants"; and (2) The "bodily injury", "property damage" or "covered pollution cost or expense" does not arise out of the operation of any equipment listed in Paragraph 6.b. or 6.c. of the definition of "mobile equipment". Paragraphs b. and c. above do not apply to "accidents" that occur away from premises owned by or rented to an "insured" with re- spect to "pollutants" not in or upon a cov- ered "auto" if: (1) The "pollutants" or any property in which the "pollutants" are contained are upset, overturned or damaged as a result of the maintenance or use of a covered "auto"; and (2) The discharge, dispersal, seepage, migration, release or escape of the "pollutants" is caused directly by such upset, overturn or damage. Page 10 of 12 Copyright, ISO Properties, Inc., 2005 CA 00 01 03 06 E "Diminution in value" means the actual or per- ceived loss in market value or resale value which results from a direct and accidental "loss", F. "Employee" includes a "leased worker". "Em- ployee" does not include a "temporary worker". G. "Insured" means any person or organization qualifying as an insured in the Who Is An In- sured provision of the applicable coverage. Ex- cept with respect to the Limit of Insurance, the coverage afforded applies separately to each insured who is seeking coverage or against whom a claim or "suit" is brought. H. "Insured contract" means: 1. A lease of premises; 2. A sidetrack agreement; 3. Any easement or license agreement, except in connection with construction or demolition operations on or within 50 feet of a railroad; 4. An obligation, as required by ordinance, to indemnify a municipality, except in connec- tion with work for a municipality; 5. That part of any other contract or agreement pertaining to your business (including an in- demnification of a municipality in connection with work performed for a municipality) un- der which you assume the tort liability of an- other to pay for "bodily injury" or "property damage" to a third party or organization. Tort liability means a liability that would be imposed by law in the absence of any con- tract or agreement; 6. That part of any contract or agreement en- tered into, as part of your business, pertain- ing to the rental or lease, by you or any of your "employees", of any "auto". However, such contract or agreement shall not be considered an "insured contract" to the ex- tent that it obligates you or any of your "em- ployees" to pay for "property damage" to any "'auto" rented or leased by you or any of your "employees". An "insured contract" does not include that part of any contract or agreement: a. That indemnifies a railroad for "bodily injury" or "property damage" arising out of construction or demolition operations, within 50 feet of any railroad property and affecting any railroad bridge or trestle. tracks, roadbeds, tunnel, underpass or crossing; or Hanauer AW2H519887 090112, b. That pertains to the loan, lease or rental of an "auto" to you or any of your "em- ployees", if the "auto" is loaned, leased or rented with a driver; or c. That holds a person or organization en- gaged in the business of transporting property by "auto" for hire harmless for your use of a covered "auto" over a route or territory that person or organization is authorized to serve by public authority. I. "Leased worker" means a person leased to you by a labor leasing firm under an agreement between you and the labor leasing firm, to per- form duties related to the conduct of your busi- ness. "Leased worker" does not include a "tem- porary worker". J. "Loss" means direct and accidental loss or damage. K. "Mobile equipment" means any of the following types of land vehicles, including any attached machinery or equipment: 1. Bulldozers, farm machinery, forklifts and other vehicles designed for use principally off public roads; 2. Vehicles maintained for use solely on or next to premises you own or rent; 3. Vehicles that travel on crawler treads; 4. Vehicles, whether self-propelled or not, maintained primarily to provide mobility to permanently mounted: a. Power cranes, shovels, loaders, diggers or drills; or b. Road construction or resurfacing equip- ment such as graders, scrapers or roll- ers. 5. Vehicles not described in Paragraph 1., 2., 3., or 4. above that are not self-propelled and are maintained primarily to provide mobility to permanently attached equipment of the following types: a. Air compressors, pumps and generators, including spraying, welding, building cleaning, geophysical exploration, lighting and well servicing equipment; or b. Cherry pickers and similar devices used to raise or lower workers. 6. Vehicles not described in Paragraph 1., 2., 3. or 4. above maintained primarily for pur- poses other than the transportation of per- sons or cargo. However, self-propelled vehi- cles with the following types of permanently attached equipment are not "mobile equip- ment" but will be considered "autos": CA 00 01 03 06 Copyright, ISO Properties, Inc., 2005 Page 11 of 12 a. Equipment designed primarily for: (1) Snow removal; (2) Road maintenance, but not construc- tion or resurfacing; or (3) Street cleaning; b. Cherry pickers and similar devices mounted on automobile or truck chassis and used to raise or lower workers; and c. Air compressors, pumps and generators, including spraying, welding, building cleaning, geophysical exploration, lighting or well servicing equipment. However, "mobile equipment" does not include land vehicles that are subject to a compulsory or financial responsibility law or other motor vehicle insurance law where it is licensed or principally garaged. Land vehicles subject to a compulsory or financial responsibility law or other motor vehicle insurance law are consid- ered "autos". L."Pollutants" means any solid, liquid, gaseous or thermal irritant or contaminant, including smoke, vapor, soot, fumes, acids, alkalis, chemicals and waste. Waste includes materials to be recycled, reconditioned or reclaimed. M. "Property damage" means damage to or loss of use of tangible property, N. "Suit" means a civil proceeding in which: 1. Damages because of "bodily injury" or "property damage"; or 2. A "covered pollution cost or expense", to which this insurance applies, are alleged. "Suit" includes: a. An arbitration proceeding in which such damages or "covered pollution costs or expenses" are claimed and to which the "insured" must submit or does submit with our consent; or b. Any other alternative dispute resolution proceeding in which such damages or "covered pollution costs or expenses" are claimed and to which the insured submits with our consent. O. "Temporary worker" means a person who is furnished to you to substitute for a permanent "employee" on leave or to meet seasonal or short-term workload conditions. P. "Trailer" includes semitrailer. Page 12 of 12 Copyright, ISO Properties, Inc., 2005 CA 00 01 03 06