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HomeMy WebLinkAboutCAG2023-054 - Original - Fitz Towing - Towing & Impound Services As-Needed - 12/30/2022Ap p r o v a l Originator:Department: Date Sent:Date Required: Authorized to Sign: o Director or Designee o Mayor Date of Council Approval: Budget Account Number: Budget? o Yes o No Grant? o Yes o No Type: Re v i e w / Si g n a t u r e s / R o u t i n g Date Received by City Attorney:Comments: Date Routed to the Mayor’s Office: Date Routed to the City Clerk’s Office: Ag r e e m e n t I n f o r m a t i o n Vendor Name:Category: Vendor Number:Sub-Category: Project Name: Project Details: Agreement Amount: Start Date: Basis for Selection of Contractor: Termination Date: Local Business? o Yes o No* *If meets requirements per KCC 3.70.100, please complete “Vendor Purchase-Local Exceptions” form on Cityspace. Notice required prior to disclosure? o Yes o No Contract Number: Agreement Routing Form For Approvals, Signatures and Records Management This form combines & replaces the Request for Mayor’s Signature and Contract Cover Sheet forms. (Print on pink or cherry colored paper) Visit Documents.KentWA.gov to obtain copies of all agreementsadccW22373_1_20 �N GENERALTERMS CONTRACT TO PROVIDE TOWING & IMPOUND SERVICES ON AN AS -NEEDED BASIS F 1-f'L -row LL & (hereinafter "tow company"), has requested to be placed on the voluntary tow company rotation roster maintained by the City of Kent's police department (hereinafter "City"), and the tow company has been accepted to that roster, effective as of the last date signed below. However, tow company agrees that eligibility to remain on the towing roster is subject to the following conditions: A. Tow company agrees that, except as provided for in this Contract, the City has no legal duty to choose tow company to provide any towing and impound service, and the City's legal obligation to use tow company is limited to the terms in this Contract and the Kent Police Department Towing Protocols and Policies, which protocols and policies are hereby incorporated by this reference. B. By requesting appointment to the roster, tow company agrees that it wishes to be provided the opportunity perform law enforcement -related tows and impounds of vehicles as provided for by law, including Chapter 46.55 of the Revised Code of Washington ("RCW"). In consideration of being offered the opportunity to provide such services, tow company agrees to fully comply with the Kent Police Department Towing Protocols and Policies, as currently written or hereafter amended at the discretion of the City, and tow company understands that failure to comply with the Towing Protocols and Policies shall cause tow company to be removed from the tow roster. C. Tow company understands that the City's relationship with tow company under this Contract is not exclusive. Tow company will be placed on a roster of companies that are eligible to be used to provide law enforcement -related tows and Impounds within the City of Kent. Tow company further agrees that it shall be used on a rotational basis, and that use of any specific company at any given time will be as provided for by the Kent Police Department Towing Protocols and Policies. D. In consideration of tow company's willingness to fully comply with the Kent Police Department Towing Protocols and Policies, the City agrees to only request tow and impound services from companies that are in good standing on the tow roster at the time the services are needed; provided, the City may request services from companies not on the roster if none of the eligible companies are available, according to the provisions of the Towing Protocols and Policies, in emergency situations, or when the owner or person with lawful possession of the vehicle at the time of contact by the Kent Police Department requests a particular tow company. E. Tow company understands and agrees that the Kent Police Department's Tow Officer shall determine whether tow company has complied with the Kent Police Department Towing Protocols and Policies, and violations of the Towing Protocols and Policies may result in tow company's removal from the tow roster and the City's termination of this Contract with tow company. Tow company further understands and agrees that any appeal of the decision of the Tow Officer shall be heard and decided by the Chief of the Kent Police Department. F. In addition, tow company understands and agrees that this Contract is subject ,r a to immediate termination, and tow company may be removed immediately from the tow roster and a period of ineligibility for reappointment imposed for a period of 24 months, should the Tow Officer develop probable cause to believe tow company has engaged in criminal activity, deliberately overcharged any customer, repeatedly violated the Towing Protocols and Policies concerning stolen vehicles, intentionally misrepresented any material fact, failed to maintain current contact information for a controlling officer or manager, committed repeat violations within any 12-month period, or failed to comply with any licensing requirement of the City of Kent, the State of Washington, or the Washington State Patrol. G. In addition to the circumstances outlined in section (I)(F) above, tow company understands and agrees that this Contract may be terminated at will either by tow company or the Kent Police Department, without cause, by providing the other party with thirty (30) days' advance written notice. In addition, tow company agrees that nothing in this Contract shall prohibit the Kent Police Department from immediately removing tow company from the tow roster and terminating this Contract where, in the opinion of the Kent Police Department, continued use of the tow company would create a danger to the public health, safety, or welfare. II. INSURANCE, LIABILITY, AND INDEMNIFICATION A. Independent Contractor Relationship. By being placed on the tow roster, tow company and its owner and operators are performing services as provided for by Ch. 46.55 RCW and are not acting as agents for the City of Kent. Financial responsibility for tow company's services shall be as provided for by Ch. 46.55 RCW. The parties intend that an Independent Contractor/Employer Relationship be created by this Contract and agree that tow company has the ability to control and direct the performance and details of Its work. B. Work Performed at Contractor's Risk. Tow company shall take all necessary precautions and shall be responsible for the safety of its employees, agents, and subcontractors in the performance of the contract work and shall utilize all protection necessary for that purpose. All work shall be done at tow company's own risk, and tow company shall be responsible for any loss of or damage to materials, tools, or other articles used or held for use in connection with the work. C. Insurance. Tow company shall procure and maintain for the duration of its inclusion on the Kent Police Department's towing company rotation roster insurance of the types and in the amounts set forth in the Kent Police Department's Towing Protocols and Policies, which is hereby incorporated by this reference. Attached and incorporated as Exhibit A are true and correct copies of tow company's Certificate of Insurance and endorsement evidencing such insurance coverage. D. Indemnification and Liability. 1. Tow company shall defend, indemnify, and hold the City of Kent, its employees, officials, agents, and volunteers harmless from any and all claims, injuries, damages, losses, or lawsuits, including all legal costs and attorney fees, arising out of or in connection with tow company's performance of this Contract, except for that portion of the injuries and damages caused by the City's negligence. The City's inspection or acceptance of any of tow company's work when completed shall not be grounds to avoid any of these covenants of indemnification. This indemnification expressly applies to any claims, injuries, damages, losses, and lawsuits that arise due to any sale or other disposition tow company may make of any vehicle towed or Impounded by tow company under this Contract and pursuant to the procedures provided for in Ch. 46.55 RCW. Page 2 of 4 Contract for Towing and Impound Services Revlaeo 090W) 2. Should a court of competent jurisdiction determine that this Contract is subject to RCW 4.24.115, then, in the event of liability for damages arising out of bodily injury to persons or damages to property caused by or resulting from the concurrent negligence of tow company and the City of Kent or its officers, officials, employees, agents and volunteers, tow company's liability hereunder shall be only to the extent of tow company's negligence. 3. IT IS FURTHER SPECIFICALLY AND EXPRESSLY UNDERSTOOD THAT THE INDEMNIFICATION PROVIDED HEREIN CONSTITUTES THE TOW COMPANY'S WAIVER OF IMMUNITY UNDER INDUSTRIAL INSURANCE, TITLE 51 RCW, SOLELY FOR THE PURPOSES OF THIS INDEMNIFICATION. THE PARTIES FURTHER ACKNOWLEDGE THAT THEY HAVE MUTUALLY NEGOTIATED THIS WAIVER. 4. The provisions of this section II(D) shall survive the expiration or termination of this Contract. III. OTHER TERMS A. Unlawful Discrimination Prohibited. In the hiring of employees for the performance of work under this Contract or any subcontract, tow company, its subcontractors, or any person acting on behalf of tow company shall not, by reason of race, religion, color, sex, age, sexual orientation, national origin, or the presence of any sensory, mental, or physical disability, discriminate against any person who is qualified and available to perform the work to which the employment relates. B. Compliance with Laws. Tow company agrees to comply with all federal, state, and municipal laws, rules, and regulations that are now effective or in the future become applicable to tow company's business, equipment, and personnel engaged in operations covered by this Contract or accruing out of the performance of those operations. C. Non -Waiver of Breach. The failure of the City of Kent in one or more instances to insist upon strict performance of any of the covenants and agreements contained in this Contract, or to exercise any option conferred by this Contract, shall not be construed to be a waiver or relinquishment of those covenants, agreements or options, and these covenants and agreements shall remain in full force and effect. D. Assignment. Any assignment of this Contract by either party without the written consent of the non -assigning party shall be void. If the non -assigning party gives its consent to an assignment, the terms of this Contract shall continue in full force and effect and no further assignment shall be made without additional written consent. E. Written Notice. All communications regarding this Contract shall be sent to the parties at the addresses listed on the signature page of this Contract, unless notified to the contrary. Any written notice hereunder shall become effective three (3) business days after the date of mailing by registered or certified mail, and notice shall be deemed sufficiently given if sent to the addressee at the address stated in this Contract or such other address as may be hereafter specified in writing. F. Modification. No waiver, alteration, or modification of any of the provisions of this Contract all be binding unless in writing and signed by a duly authorized representative of the City of Kent and tow company. G. Entire Agreement. The written provisions and terms of this Contract, together Page 3 of 4 Contract for Towing and Impound Services Revved 09202) with any exhibits or documents incorporated by reference, shall supersede all prior verbal statements of any officer or other representative of the City of Kent, and such statements shall not be effective or be construed as entering into or forming a part of or altering in any manner this Contract. However, should any language in any of the incorporated documents or exhibits conflict with any language contained in this Contract, the terms of this Contract shall prevail. H. Resolution of Disputes and Governing Law, This Contract shall be governed by and construed in accordance with the laws of the State of Washington. If the parties are unable to settle any dispute, difference or claim arising from the parties' performance of this Contract, the exclusive means of resolving that dispute, difference or claim, shall only be by filing suit exclusively under the venue, rules and jurisdiction of the King County Superior Court, King County, Washington, unless the parties agree in writing to an alternative dispute resolution process. In any claim or lawsuit for damages arising from the parties' performance of this Contract, each party shall pay all legal costs and attorney's fees incurred in defending or bringing such claim or lawsuit, in addition to any other recovery or award provided by law; provided, nothing in this paragraph shall be construed to limit the City of Kent's right to indemnification. I. Agreement to All Terms. By its signature below, tow company accepts the above -stated terms and conditions and agrees to abide by the same in consideration of being placed on the Kent Police Department's tow rotation roster. TOW COMPANY FI TZ IaWi,1-1iGLLC. [Insert NameJ Tow Company] Signature of Au/thhor) d Agent OfAgent of Tow Company] IeLowC / Aszzi [Print Name jnd Title] [Date Signed] CONTACT INFORMATION: ZF // [Address] ili cqy/c '` ' A — NF (AA]ddress Continued]? �y YLz�l�.f?ilir ffl [Atltlress Continued] 2037- 833-#,V?3 [Phone � Number] L l CJ /nZidrJ Cunt [Email] Page 4 of 4 CITY O� �KENT .- [Signature of Officer for City of Kent Police Department] Commander Joshua Bava [Print Name and Title] Id JL7rdoaa [Date Signed] CONTACT INFORMATION: CIO' Kent Police Department [Address] 220 4°M1 Ave. S. [Ad as. Continuetl] Kent WA 98032 [Atldress Continued] 253-856-5834 [Phone Number] JBava* entWA.aov [Email] Contract for Towing and Impound Services Revised OgF207E 12/30/2022 Bell Anderson Agency, Inc. 600 SW 39th St., Suite 200 Renton WA 98057 Ariel Smiley Peterson, CRIS, TRIP (425) 291-5200 (425) 291-5100 arielp@bell-anderson.com Fitz Towing LLC DBA: Fitz Towing 9212 S Tacoma Way Lakewood WA 98499 Pioneer Specialty Insurance Company CL2212255117 A CPP120099204 12/02/2022 12/02/2023 1,000,000 50,000 5,000 1,000,000 2,000,000 2,000,000 A Y CPP120069904 12/02/2022 12/02/2023 1,000,000 A 10,000 UMB103382404 12/02/2022 12/02/2023 1,000,000 1,000,000 A CPP120099204 - WA Stop Gap 12/02/2022 12/02/2023 WA Stop Gap 1,000,000 1,000,000 1,000,000 A Motor Truck Cargo/On Hook Garagekeepers Liability CPP120100704 12/02/2022 12/02/2023 Any One Veh/$2500 ded 250,000 Legal Liab/$1000 ded 250,000 The certificate holder is additional insured per the attached endorsement #WNCA27 0616. Kent Police Department 220 4th Avenue South Kent WA 98032 SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. INSURER(S) AFFORDING COVERAGE INSURER F : INSURER E : INSURER D : INSURER C : INSURER B : INSURER A : NAIC # NAME:CONTACT (A/C, No):FAX E-MAILADDRESS: PRODUCER (A/C, No, Ext):PHONE INSURED REVISION NUMBER:CERTIFICATE NUMBER:COVERAGES 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 rights to the certificate holder in lieu of such endorsement(s). THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER. OTHER: (Per accident) (Ea accident) $ $ N / A SUBR WVD ADDL INSD THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. $ $ $ $PROPERTY DAMAGE BODILY INJURY (Per accident) BODILY INJURY (Per person) COMBINED SINGLE LIMIT AUTOS ONLY AUTOSAUTOS ONLY NON-OWNED SCHEDULEDOWNED ANY AUTO AUTOMOBILE LIABILITY Y / N WORKERS COMPENSATION AND EMPLOYERS' LIABILITY OFFICER/MEMBER EXCLUDED? (Mandatory in NH) DESCRIPTION OF OPERATIONS below If yes, describe under ANY PROPRIETOR/PARTNER/EXECUTIVE $ $ $ E.L. DISEASE - POLICY LIMIT E.L. DISEASE - EA EMPLOYEE E.L. EACH ACCIDENT EROTH-STATUTEPER LIMITS(MM/DD/YYYY)POLICY EXP(MM/DD/YYYY)POLICY EFFPOLICY NUMBERTYPE OF INSURANCELTRINSR DESCRIPTION OF OPERATIONS / LOCATIONS / VEHICLES (ACORD 101, Additional Remarks Schedule, may be attached if more space is required) EXCESS LIAB UMBRELLA LIAB $EACH OCCURRENCE $AGGREGATE $ OCCUR CLAIMS-MADE DED RETENTION $ $PRODUCTS - COMP/OP AGG $GENERAL AGGREGATE $PERSONAL & ADV INJURY $MED EXP (Any one person) $EACH OCCURRENCE DAMAGE TO RENTED $PREMISES (Ea occurrence) COMMERCIAL GENERAL LIABILITY CLAIMS-MADE OCCUR GEN'L AGGREGATE LIMIT APPLIES PER: POLICY PRO-JECT LOC CERTIFICATE OF LIABILITY INSURANCE DATE (MM/DD/YYYY) CANCELLATION AUTHORIZED REPRESENTATIVE ACORD 25 (2016/03) © 1988-2015 ACORD CORPORATION. All rights reserved. CERTIFICATE HOLDER The ACORD name and logo are registered marks of ACORD HIRED AUTOS ONLY WN CA 27 06 16 WN CA 27 06 16 Includes copyrighted material of Insurance Services Office, with its permission Page 1 of 5 BUSINESS AUTO ENHANCEMENT ENDORSEMENT The Business Auto Enhancement Endorsement is an optional endorsement that provides coverage enhancements. The following is a summary of broadened coverages provided by this endorsement. No coverage is provided by this summary, refer to following endorsement for changes in your policy. SUMMARY OF COVERAGES PAGE Accidental Airbag Deployment Coverage 4 Auto Loan/Lease Gap Coverage 4 Blanket Additional Insured 2 Blanket Waiver of Subrogation 5 Broadened Definition of Insured includes:  Newly Acquired Organizations for up to 180 Days 2  Employees as Insureds 2  Subsidiaries in Which You Own 50% or More 2 Deductible Waiver for Glass Repair 3 Employee Hired Auto 2, 5 Fellow Employee Coverage 3 Hired Auto Physical Damage Coverage 4 Knowledge of Accident, Claim, Suit or Loss 5 Loss Of Use Expenses - Amended 3 Personal Effects 3 Rental Reimbursement Coverage 4 Supplementary Payments - Amended:  Bail Bonds up to $5,000 2  Loss of Earnings up to $500/Day 2 Transportation Expense Limits – Amended 3 Unintentional Failure to Disclose Hazards 5 WN CA 27 06 16 WN CA 27 06 16 Includes copyrighted material of Insurance Services Office, with its permission Page 2 of 5 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY BUSINESS AUTO ENHANCEMENT ENDORSEMENT This endorsement modifies the insurance provided under the following: BUSINESS AUTO COVERAGE FORM With respect to the coverage provided by this endorsement, the provisions of the Coverage Form apply unless modified by this endorsement. The SECTIONS of the Business Auto Coverage Form identified in this endorsement will be amended as shown below. SECTION II – COVERED AUTOS LIABILITY COVERAGE AMENDMENTS A. Who Is An Insured SECTION II – COVERED AUTOS LIABILITY COVERAGE, A. Coverage, 1. Who Is An Insured is amended to add: d. Any legally incorporated subsidiary of yours in which you own more than 50% of the voting stock on the effective date of this coverage form. However, “insured” does not include any subsidiary of yours that is an “insured” under any other automobile liability policy, or would be an “insured” under such policy but for termination of such policy or the exhaustion on such policy’s limits of insurance. e. Any organization which is newly acquired or formed by you and over which you maintain majority ownership. However, coverage under this provision: (1) is afforded only for the first 180 days after you acquire or form the organization or until the end of the policy period, whichever comes first; (2) does not apply to “bodily injury” or “property damage” that results from an “accident” that occurred before you formed or acquired the organization; (3) does not apply to any newly acquired or formed organization that is a joint venture or partnership; and (4) does not apply to an “insured” under any other automobile liability policy, or would be an “insured” under such a policy but for ter- mination of such policy or the exhaustion of such policy’s limits of insurance. f. Any “employee” of yours is an “insured” while using a covered “auto” you don’t own, hire or borrow in your business or your personal affairs. g. Any “employee” of yours is an “insured” while operating a covered “auto” hired or rented under a contract or agreement in the “employee’s” name, with your permission, while performing duties related to the conduct of your business. B. Blanket Additional Insured SECTION ll – COVERED AUTOS LIABILITY COVERAGE, A. Coverage, 1. Who Is An Insured, paragraph c. is amended to add the following: Any person or organization who is required under a written contract or agreement between you and that person or organization, that is signed and executed by you before the “bodily injury” or “property damage” occurs and that is in effect during the policy period, to be named as an additional insured is an “insured” for Liability Coverage, but only for damages to which this insurance applies and only to the extent that persons or organization qualifies as an “insured” under the Who Is An Insured provision contained in Section ll. C. Liability Coverage Extensions – Supplementary Payments SECTION II – COVERED AUTOS LIABILITY COVERAGE, A. Coverage, 2. Coverage Extensions, a. Supplementary Payments is amended by replacing subparagraphs (2) and (4) with the following: (2) Up to $5,000 for cost of bail bonds (including bonds for related traffic law violations) required because of an “accident” we cover. We do not have to furnish these bonds. (4) All reasonable expenses incurred by the “insured” at our request, including actual loss of earnings up to $500 a day because of time off from work. WN CA 27 06 16 Includes copyrighted material of Insurance Services Office, with its permission Page 3 of 5 D. Fellow Employee Coverage SECTION II – COVERED AUTOS LIABILITY COVERAGE, B. Exclusions, 5. Fellow Employee, the following is added: Co-Employee Lawsuit Defense Cost Reimbursement If a suit seeking damages for “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 conduct of your business, or a suit seeking damages brought by the spouse, child, parent, brother or sister of that fellow “employee”, is brought against you, we will reimburse reasonable costs that you incur in the defense of such matters. Any reimbursement made pursuant to this sub-section will be in addition to the limits of liability set forth in the Declarations. SECTION III – PHYSICAL DAMAGE COVERAGE AMENDMENTS A. Transportation Expense – Limits Amended SECTION III – PHYSICAL DAMAGE COVERAGE, A. Coverage, 4. Coverage Extensions, a. Trans- portation Expenses is amended by replacing $20 per day/$600 maximum limit with $50 per day/$1000 maximum. B. Hired Auto Physical Damage – Loss Of Use Expenses – Limits Amended SECTION III – PHYSICAL DAMAGE COVERAGE, A. Coverage, 4. Coverage Extensions, b. Loss of Use Expenses is amended by replacing the $20 per day/$600 maximum limit with $50 per day/$750 maximum limit. C. Personal Effects Coverage SECTION lll – PHYSICAL DAMAGE COVERAGE, A. Coverage, 4. Coverage Extensions is amended by adding the following: c. Personal Effects We will pay up to $500 for “loss” to personal effects, which are: (1) Owned by an “insured”; and (2) In or on your covered “auto.” This coverage applies only in the event of the total theft of your covered “auto.” No deductible applies to this coverage D. Glass Repair – Deductible Waiver SECTION III – PHYSICAL DAMAGE COVERAGE, A. Coverage, 3. Glass Breakage – Hitting A Bird Or Animal – Falling Objects Or Missiles, is amended by adding the following: No deductible will apply to glass breakage if such glass is repaired, in a manner acceptable to us, rather than replaced. E. Hired Auto Physical Damage SECTION III – PHYSICAL DAMAGE COVERAGE, A. Coverage is amended by adding the following: 5. Hired Auto Physical Damage If hired “autos” are covered “autos” for Liability Coverage and if Comprehensive, Specified Causes of Loss, or Collision coverages are pro- vided under this coverage form for any “auto” you own, then the Physical Damage Coverages provided are extended to “autos” you hire of like kind and use, subject to the following: a. The most we will pay for any one “loss” is $50,000 or the actual cash value or cost to repair or replace, whichever is less, minus a deductible; b. The deductible will be equal to the largest deductible applicable to any owned “auto” for that coverage. Any Comprehensive deductible does not apply to “loss” caused by fire or lightening; c. Hired Auto Physical Damage coverage is excess over any other collectible insurance; and d. Subject to the above limit, deductible and excess provisions we will provide coverage equal to the broadest coverage applicable to any covered “auto” you own. If a limit for Hired Auto Physical Damage is indicated in the Declarations, then that limit replaces, and is not added to, the $50,000 limit indicated above. WN CA 27 06 16 Includes copyrighted material of Insurance Services Office, with its permission Page 4 of 5 F. Rental Reimbursement SECTION III – PHYSICAL DAMAGE COVERAGE A. Coverage, is amended by adding the following: 6. Rental Reimbursement This coverage applies only to a covered “auto” of the private passenger or light truck type as follows: a. We will pay for rental reimbursement expenses incurred by you for the rental of a private passenger or light truck type “auto” because of “loss” to a covered private pas- senger or light truck type “auto”. Payment applies in addition to the otherwise applica- ble amount of each coverage you have on a covered private passenger or light truck type “auto.” No deductibles apply to this coverage. b. We will pay only for those expenses incurred during the policy period beginning 24 hours after the “loss” and ending, regardless of the policy’s expiration, with the lesser of the fol- lowing number of days: (1) The number of days reasonably re- quired to repair or replace the covered private passenger or light truck type “auto”. If “loss” is caused by theft, this number of days is added to the number of days it takes to locate the covered private passenger or light truck type “auto” and return it to you; or (2) 30 days. c. Our payment is limited to the lesser of the following amounts: (1) Necessary and actual expenses incurred, or (2) $50 per day, up to a maximum of $1,000. d. This coverage does not apply while there are spare or reserve private passenger or light truck type “autos” available to you for your operations. e. If “loss” results from the total theft of a covered “auto” of the private passenger or light truck type, we will pay under this cover- age only that amount of your rental reim - bursement expenses which is not alread y provided for under SECTION III – PHYSICAL DAMAGE COVERAGE, A. Coverage, 4. Coverage Extensions. For the purposes of this Rental Reimbursement coverage, light truck is defined as a truck with a gross vehicle weight of 10,000 lbs. or less as defined by the manufacturer as the maximum loaded weight the auto is designed to carry. G. Accidental Airbag Deployment Coverage SECTION III – PHYSICAL DAMAGE COVERAGE, A. Coverage is amended by adding the following: 7. Accidental Airbag Deployment Coverage We will pay to reset or replace factory installed airbag(s) in any covered “auto” for accidental discharge, other than discharge due to a collision loss. This coverage is applicable only if comprehen- sive coverage applies to the covered “auto”. This coverage is excess over any other collecti- ble insurance or reimbursement by manufac- turer’s warranty. H. Auto Loan/Lease Gap Coverage SECTION III PHYSICAL DAMAGE COVERAGE, Item A., Coverage, is amended by adding the following: 8. Auto Loan/Lease Gap Coverage This coverage applies only to a covered “auto” described or designated in the Schedule or in the Declarations as including physical damage coverage. In the event of a covered total “loss” to a covered “auto” described or designated in the Schedule or in the Declarations, we will pay any unpaid amount due on the lease or loan for a covered “auto” less: a. The amount paid under the Physical Damage Coverage Section on the policy; and b. Any: (1) Overdue lease/loan payments at the time of the “loss”; (2) Financial penalties imposed under a lease for excessive use, abnormal wear and tear or high mileage; (3) Security deposits not returned by the lessor; (4) Costs for extended warranties, Credit Life Insurance, Health, Accident or Disability Insurance purchased with the loan or lease; and (5) Carry-over balances from previous loans or leases. WN CA 27 06 16 Includes copyrighted material of Insurance Services Office, with its permission Page 5 of 5 SECTION IV – BUSINESS AUTO CONDITIONS AMENDMENTS A. Duties In The Event Of Accident, Claim, Suit Or Loss Amended SECTION IV – BUSINESS AUTO CONDITIONS, A. Loss Conditions, 2. Duties In The Event Of Accident, Claim, Suit Or Loss, a. is amended by adding the following: This condition applies only when the “accident” or “loss” is known to: (1) You, if you are an individual; (2) A partner, if you are a partnership; (3) An executive officer or insurance manager, if you are a corporation; or (4) A member or manager, if you are a limited liability company. But, this section does not amend the provisions relating to notification of police, protection or exami- nation of the property which was subject to the “loss”. B. Blanket Waiver of Subrogation Section IV – BUSINESS AUTO CONDITIONS, A. Loss Conditions, 5. Transfer of Rights of Recovery Against Others to Us, is amended by adding the following exception: However, we waive any right of recovery we may have against any person or organization to the extent required of you by a written contract signed and executed prior to any “accident” or “loss”, provided that the “accident” or “loss” arises out of operations contemplated by such contract. The waiver applies only to the person or organization designated in such contract. C. Unintentional Failure to Disclose Hazards SECTION IV – BUSINESS AUTO CONDITIONS, B. General Conditions, 2. Concealment, Misrepre- sentation Or Fraud, is amended by adding the following paragraph: If you unintentionally fail to disclose any hazards existing at the inception date of the policy, or during the policy period in connection with any additional hazards, we will not deny coverage under this Cov- erage Part because of such failure. D. Employee Hired Auto SECTION IV – BUSINESS AUTO CONDITIONS, B. General Conditions, 5. Other Insurance, paragraph b. is deleted and replace by the following: b. For Hired Auto Physical Damage Coverage, the following are deemed to be a covered “autos” you own: (1) Any covered “auto” you lease, hire, rent or borrow. (2) Any covered “auto” hired or rented by your “employee” under a contract in that individual “employee’s” name, with your permission, while performing duties related to the conduct of your business. However, any “auto” that is leased, hired, rented or borrowed with a driver is not a covered “auto”.