HomeMy WebLinkAbout2015-297 Contract - AA Insulation
Contract for GOODS AND SERVICES Less than $25,000
CONTRACTOR: A A Insulation
CONTACT: Howard Osvold, Sales Rep
340 S. Pioneer Street ADDRESS: PO Box 1119, Ashland, OR 97520
Ashland, Oregon 97520
Telephone: 541/488-5340 TELEPHONE: 541 / 535-1818 FAX: 541-535-1575
Fax: 541/488-5314
DATE AGREEMENT PREPARED: 10/7115115 Email: Howard.osvold(a~gmail.com
BEGINNING DATE: 10/16/15 COMPLETION DATE: 11/30/15
COMPENSATION: $4,263.00
GOODS AND SERVICES TO BE PROVIDED: Install R-38 high-density insulation and vapor barrier in ceiling
of Daniel Meyer Pool building.
ADDITIONAL TERMS:
In the event of conflicts or discrepancies among the contract documents, the City of Ashland Contract for Goods and Services will be primary and take
precedence, and any exhibits or ancillary contracts or agreements having redundant or contrary provisions will be subordinate to and interpreted in a
manner that will not conflict with the said primary City of Ashland Contract.
NOW THEREFORE, pursuant to AMC 2.50.090 and after consideration of the mutual covenants contained herein the
CITY AND CONTRACTOR AGREE as follows:
1. All Costs by Contractor: Contractor shall, provide all goods as specified above and shall at its own risk and
expense, perform any work described above and, unless otherwise specified, furnish all labor, equipment and
materials required for the proper performance of such work.
2. Qualified Work: Contractor has represented, and by entering into this contract now represents, that any personnel
assigned to the work required under this contract are fully qualified to perform the work to which they will be assigned
in a skilled and worker-like manner and, if required to be registered, licensed or bonded by the State of Oregon, are
so registered, licensed and bonded. Contractor must also maintain a current City business license.
3. Completion Date: Contractor shall provide all goods in accordance with the standards and specifications, no later
than the date indicated above and start performing the work under this contract by the beginning date indicated
above and complete the work by the completion date indicated above.
4. Compensation: City shall pay Contractor for the specified goods and for any work performed, including costs and
expenses, the sum specified above. Payments shall be made within 30 days of the date of the invoice. Should the
contract be prematurely terminated, payments will be made for work completed and accepted to date of termination.
Compensation under this contract, including all costs and expenses of Contractor, is limited to $25,000.00, unless a
separate written contract is entered into by the City.
5. Ownership of Documents: All documents prepared by Contractor pursuant to this contract shall be the property of
City.
6. Statutory Requirements: ORS 2799.220, 2799.225, 2799.230, 2798.235, ORS Chapter 244 and ORS 670.600 are
made part of this contract.
7. Living Wage Requirements: If contractor is providing services under this contract and the amount of this contract
is $20,142.20 or more, Contractor is required to comply with chapter 3.12 of the Ashland Municipal Code by paying a
living wage, as defined in this chapter, to all employees performing work under this contract and to any subcontractor
who performs 50% or more of the work under this contract. Contractor is also required to post the notice attached
hereto as Exhibit B predominantly in areas where it will be seen by all employees.
8. Indemnification: Contractor agrees to defend, indemnify and save City, its officers, employees and agents harmless
from any and all losses, claims, actions, costs, expenses, judgments, subrogations, or other damages resulting from
injury to any person (including injury resulting in death), or damage (including loss or destruction) to property, of
whatsoever nature arising out of or incident to the performance of this contract by Contractor (including but not limited
to, Contractor's employees, agents, and others designated by Contractor to perform work or services attendant to this
contract). Contractor shall not be held responsible for any losses, expenses, claims, subrogations, actions, costs,
judgments, or other damages, directly, solely, and proximately caused by the negligence of City.
9. Termination:
a. Mutual Consent. This contract may be terminated at any time by mutual consent of both parties.
b. City's Convenience. This contract may be terminated at any time by City upon 30 days' notice in writing
and delivered b certified mail or in person.
Contract for Goods and Services Less than $25,000, Revised 06/02/2015, Page 1 of 5
C. For Cause. City may terminate or modify this contract, in whole or in part, effective upon delivery of
written notice to Contractor, or at such later date as may be established by City under any of the following
conditions:
i. If City funding from federal, state, county or other sources is not obtained and continued at levels
sufficient to allow for the purchase of the indicated quantity of services;
ii. If federal or state regulations or guidelines are modified, changed, or interpreted in such a way
that the services are no longer allowable or appropriate for purchase under this contract or are
no longer eligible for the funding proposed for payments authorized by this contract; or
iii. If any license or certificate required by law or regulation to be held by Contractor to provide the
services required by this contract is for any reason denied, revoked, suspended, or not renewed.
d. For Default or Breach.
i. Either City or Contractor may terminate this contract in the event of a breach of the contract by
the other. Prior to such termination the party seeking termination shall give to the other party
written notice of the breach and intent to terminate. If the party committing the breach has not
entirely cured the breach within 15 days of the date of the notice, or within such other period as
the party giving the notice may authorize or require, then the contract may be terminated at any
time thereafter by a written notice of termination by the party giving notice.
ii. Time is of the essence for Contractor's performance of each and every obligation and duty under
this contract. City by written notice to Contractor of default or breach, may at any time terminate
the whole or any part of this contract if Contractor fails to provide services called for by this
contract within the time specified herein or in any extension thereof.
iii. The rights and remedies of City provided in this subsection (d) are not exclusive and are in
addition to any other rights and remedies provided by law or under this contract.
e. Obligation/Liability of Parties. Termination or modification of this contract pursuant to subsections a, b, or
c above shall be without prejudice to any obligations or liabilities of either party already accrued prior to such
termination or modification. However, upon receiving a notice of termination (regardless whether such notice is
given pursuant to subsections a, b, c or d of this section, Contractor shall immediately cease all activities under
this contract, unless expressly directed otherwise by City in the notice of termination. Further, upon termination,
Contractor shall deliver to City all contract documents, information, works-in-progress and other property that are
or would be deliverables had the contract been completed. City shall pay Contractor for work performed prior to
the termination date if such work was performed in accordance with the Contract.
10. Independent Contractor Status: Contractor is an independent Contractor and not an employee of the City.
Contractor shall have the complete responsibility for the performance of this contract.
11. Non-discrimination Certification: The undersigned certifies that the undersigned Contractor has not discriminated
against minority, women or emerging small businesses enterprises in obtaining any required subcontracts.
Contractor further certifies that it shall not discriminate in the award of such subcontracts, if any. The Contractor
understands and acknowledges that it may be disqualified from bidding on this contract, including but not limited to
City discovery of a misrepresentation or sham regarding a subcontract or that the Bidder has violated any
requirement of ORS 279A.110 or the administrative rules implementing the Statute.
12. Asbestos Abatement License: If required under ORS 468A.710, Contractor or Subcontractor shall possess an
asbestos abatement license.
13. Assignment and Subcontracts: Contractor shall not assign this contract or subcontract any portion of the work
without the written consent of City. Any attempted assignment or subcontract without written consent of City shall be
void. Contractor shall be fully responsible for the acts or omissions of any assigns or subcontractors and of all
persons employed by them, and the approval by City of any assignment or subcontract shall not create any
contractual relation between the assignee or subcontractor and City.
14. Use of Recyclable Products: Contractor shall use recyclable products to the maximum extent economically feasible
in the performance of the contract work set forth in this document.
15. Default. The Contractor shall be in default of this agreement if Contractor: commits any material breach or default of
any covenant, warranty, certification, or obligation it owes under the Contract; if it loses its QRF status pursuant to
the QRF Rules or loses any license, certificate or certification that is required to perform the work or to qualify as a
QRF if Contractor has qualified as a QRF for this agreement, institutes an action for relief in bankruptcy or has
instituted against it an action for insolvency; makes a general assignment for the benefit of creditors; or ceases doing
business on a regular basis of the type identified in its obligations under the Contract; or attempts to assign rights in,
or delegate duties under, the Contract.
16. Insurance. Contractor shall at its own expense provide the following insurance:
a. Worker's Compensation insurance in compliance with ORS 656.017, which requires subject employers to
provide Oregon workers' compensation coverage for all their subject workers
b. General Liability insurance with a combined single limit, or the equivalent, of not less than Enter one:
$200,000, $500,000, $1,000,000, $2,000,000 or Not Applicable for each occurrence for Bodily Injury and Property
Damage.
C. Automobile Liability insurance with a combined single limit or the equivalent, of not less than Enter one:
Contract for Goods and Services Less than $25,000, Revised 06/02/2015, Page 2 of 5
$200,000, $500,000, $1,000,000, or Not Applicable for each accident for Bodily Injury and Property Damage,
including coverage for owned, hired or non-owned vehicles, as applicable.
d. Notice of cancellation or change. There shall be no cancellation, material change, reduction of limits or
intent not to renew the insurance coverage(s) without 30 days' written notice from the Contractor or its insurer(s) to
the City.
e. Additional Insured/Certificates of Insurance. Contractor shall name The City of Ashland, Oregon, and its
elected officials, officers and employees as Additional Insureds on any insurance policies required herein but only
with respect to Contractor's services to be provided under this Contract. As evidence of the insurance coverages
required by this Contract, the Contractor shall furnish acceptable insurance certificates prior to commencing work
under this contract. The contractor's insurance is primary and non-contributory. The certificate will specify all of the
parties who are Additional Insureds. Insuring companies or entities are subject to the City's acceptance. If
requested, complete copies of insurance policies, trust agreements, etc. shall be provided to the City. The
Contractor shall be financially responsible for all pertinent deductibles, self-insured retentions and/or self-
insurance.
17. Governing Law; Jurisdiction; Venue: This contract shall be governed and construed in accordance with the laws
of the State of Oregon without resort to any jurisdiction's conflict of laws, rules or doctrines. Any claim, action, suit or
proceeding (collectively, "the claim") between the City (and/or any other or department of the State of Oregon) and
the Contractor that arises from or relates to this contract shall be brought and conducted solely and exclusively within
the Circuit Court of Jackson County for the State of Oregon. If, however, the claim must be brought in a federal
forum, then it shall be brought and conducted solely and exclusively within the United States District Court for the
District of Oregon filed in Jackson County, Oregon. Contractor, by the signature herein of its authorized
representative, hereby consents to the in personam jurisdiction of said courts. In no event shall this section be
construed as a waiver by City of any form of defense or immunity, based on the Eleventh Amendment to the United
States Constitution, or otherwise, from any claim or from the jurisdiction.
18. THIS CONTRACT AND ATTACHED EXHIBITS CONSTITUTE THE ENTIRE AGREEMENT BETWEEN THE
PARTIES. NO WAIVER, CONSENT, MODIFICATION OR CHANGE OF TERMS OF THIS CONTRACT SHALL
BIND EITHER PARTY UNLESS IN WRITING AND SIGNED BY BOTH PARTIES. SUCH WAIVER, CONSENT,
MODIFICATION OR CHANGE, IF MADE, SHALL BE EFFECTIVE ONLY IN THE SPECIFIC INSTANCE AND FOR
THE SPECIFIC PURPOSE GIVEN. THERE ARE NO UNDERSTANDINGS, AGREEMENTS, OR
REPRESENTATIONS, ORAL OR WRITTEN, NOT SPECIFIED HEREIN REGARDING THIS CONTRACT.
CONTRACTOR, BY SIGNATURE OF ITS AUTHORIZED REPRESENTATIVE, HEREBY ACKNOWLEDGES THAT
HE/SHE HAS READ THIS CONTRACT, UNDERSTANDS IT, AND AGREES TO BE BOUND BY ITS TERMS AND
CONDITIONS.
19. Nonappropriations Clause. Funds Available and Authorized: City has sufficient funds currently available and
authorized for expenditure to finance the costs of this contract within the City's fiscal year budget. Contractor
understands and agrees that City's payment of amounts under this contract attributable to work performed after the
last day of the current fiscal year is contingent on City appropriations, or other expenditure authority sufficient to allow
City in the exercise of its reasonable administrative discretion, to continue to make payments under this contract. In
the event City has insufficient appropriations, limitations or other expenditure authority, City may terminate this
contract without penalty or liability to City, effective upon the delivery of written notice to Contractor, with no further
liability to Contractor.
20. Prior Approval Required Provision. Approval by the City of Ashland Council or the Public Contracting Officer is
required before any work may begin under this contract.
21. Certification. Contractor shall sign the certification attached hereto as Exhibit A and herein incorporated by
reference.
Contra tor: City of Ashland
By y1 10-~L
Signature Department Head
d o wa_t ~ w Gl I ffid l a-d A, f lu cad
Print Name Print Name
Title Date
W-9 One copy of a W-9 is to be submitted with
the signed contract. Purchase Order No.
Contract for Goods and Services Less than $25,000, Revised 06/02/2015, Page 3 of 5
EXHIBIT A
CERTIFICATIONS/REPRESENTATIONS: Contractor, under penalty of perjury, certifies that (a) the
number shown on the attached W-9 form is its correct taxpayer ID (or is waiting for the number to be
issued to it and (b) Contractor is not subject to backup withholding because (i) it is exempt from
backup withholding or (ii) it has not been notified by the Internal Revenue Service (IRS) that it is
subject to backup withholding as a result of a failure to report all interest or dividends, or (iii) the IRS
has notified it that it is no longer subject to backup withholding. Contractor further represents and
warrants to City that (a) it has the power and authority to enter into and perform the work, (b) the
Contract, when executed and delivered, shall be a valid and binding obligation of Contractor
enforceable in accordance with its terms, (c) the work under the Contract shall be performed in
accordance with the highest professional standards, and (d) Contractor is qualified, professionally
competent and duly licensed to perform the work. Contractor also certifies under penalty of perjury
that its business is not in violation of any Oregon tax laws, and it is a corporation authorized to act on
behalf of the entity designated above and authorized to do business in Oregon or is an independent
Contractor as defined in the contract documents, and has checked four or more of the following
criteria:
✓ (1) 1 carry out the labor or services at a location separate from my residence or is in a
/ specific portion of my residence, set aside as the location of the business.
✓ (2) Commercial advertising or business cards or a trade association membership are
purchased for the business.
(3) Telephone listing is used for the business separate from the personal residence listing.
(4) Labor or services are performed only pursuant to written contracts.
✓ (5) Labor or services are performed for two or more different persons within a period of one
year.
(6) 1 assume financial responsibility for defective workmanship or for service not provided
as evidenced by the ownership of performance bonds, warranties, errors and omission
insurance or liability insurance relating to the labor or services to be provided.
Cont ' ctor (Date)
Contract for Goods and Services Less than $25,000, Revised 06/02/2015, Page 4 of 5
A A Insulation Proposal
_ P 0 Box 11 19 Ashlanfl.Ok 91`52 ; Date
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P 0 Box " 119 Ashiand,OR 97520 Date:
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CITY OF ASHLAND TAX REGISTRATION
(FOR REVENUE PURPOSES ONLY)
BUSINESS LOCATION INFORMATION REGISTRATION NO
STPFFTt-: _PO POX 1119 LPL-001809
OWNER INFORMATION
HOVVARD OSVOLD
I3€rl~ctrti C~I~ri~.te,n~en
REGISTRATION EXPIRES JUNE 30.
AA INSULATION
PO BOX 1119
ASHLAND. OR 97/520 2016
TO BE POSTED IN A CONSPICUOUS PLACE.
OCT-09-2015 10:58 Ward Insurance 541 342 8280 P.002i031
® DATE(MM/DOYYYY)
ACS ° CERTIFICATE OF LIABILITY INSURANCE
10/9/2015
THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS
CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES
BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED
REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER.
IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must he 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).
PRODUCER CONTACT Sue Noakes
NAME:
Ward Insurance Agency = (541) 687-1117 FAUX No: (541)342-8280
Emil;
PO Box 10157 EMAIL
ADDRESS: suen@wardinsurance.net
INSURE 5 AFFORDING COVERAGE NAIC#
Eugene OR 97440 INSURER A Ameri can Hallmark Ins. Co. of TX 43494
INSURED INSURER 8:
Howard Osvold, DBA: AA Insulation INSURER C:
PO Box 1119 INSURER D :
INSURER E :
Ashland OR 97520 INSURER F:
COVERAGES CERTIFICATE NUMBER 15/16 GL Auto UMB REVISION NUMBER:
THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD
INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT VATH RESPECT TO WHICH THIS
CERTIFICATE MAY BE ISSUED OR MAY PERTAIN. THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL l-HL TERMS,
EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOVM MAY HAVE BEEN REDUCED BY PAID CLAIMS.
tLTR R TYPE OF INSURANCE INSD WVQ POLICY NUMBER PAMIOMYYYY MM! D YYYY LIMITS
X COMMERCIAL GENERAL LIABILITY EACH OCCURRENCE $ 1,0D0,000
1.11 ) -MADE OCCUR OGAAA' -10 RENTED
A CLAIMS-MADE 100,000
i PREMISES Ea occurrence $
X Y 44CL489090 7/1/2015 7/1/2016 M ED EXF(Any one person) $ 5,000
PERSONAL &ADV IN URY S 1,000,000
GEN'L AGGREGATE LIMIT APPLIES PER'. GENERA'- AGGREGATE $ 2,000,000
POLICY I JEC LOC PRODUCTS - COMPIOPAGO $ 2,ODO,000
OTHER. Employee Benefits Aggregate $ 2,000,000
AUTOMOBILE LIABILITY COMBINED SINGLE Lr411T $ 1, 000, 000
Ea accidenti _
A ANY AUTO BODILY INJURY (Per person) $
A EO X SCHEDULED
AU70S UTOS X Y 44CL488090 7/1/2015 7/1/2016 BCD ILY INJURY (Per accdent) $
IX HIRED AUTOS X AUTOS%104=0 PR~OPERITe'(DAMACE $
Medical ments $ 5,000
X UMBRELLA LIAB X OCCUR j EACH OCCURRENCE $ 2,000,000
A EXCESS LIAB CLAIMS- MAOE ACGREGATE $
DED RETENTION$ 44CU48891 7/1/2015 7/1/2016 S
,
WORKERS COMPENSATION PER I DT H_
AND EMPLOYERS' LIABILITY YIN STATJTE i _E,R
ANY PROPRIETOR/PARTNER)FIECUTI\VE E.L EACH ACCIDENT 3
CFF I CERMEMSER EXCLUDED? NIA
(Mandatory in NH) EL. DISEASE- EA EMPLOYE $
N yes. dssclebe undw
G DISEASE- POLICY LIMIT $
ESCRI: TION OF 0?ERATIONS Felo-v
DESCRIPTION OF OPERATIONS I LOCATIONS I VEHICLES (ACORD 101, Additional Remarks Schedule, may be attached If more space Is required)
City of Ashland is included as additional insured on a primary and non-contributory basis with waiver of
subrogation as respects to the general liability as required by written contract per attached MP9767.
Auto additional insured and waiver apply per BA2060 Subject to policy limits, terms, conditions and
exclusions.
CERTIFICATE HOLDER CANCELLATION
(541)488-5314
SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE
City of Ashland THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN
Attn: Susan Dyssegard ACCORDANCE WITH THE POLICY PROVISIONS.
340 South Pioneer Street
Ashland, OR 97520 AUTHORIZED REPRESENTATIVE
Michael Holcomb/TINA
01988-2014ACORD CORPORATION. All rights reserved.
ACORD 25 (2014101) The ACORD name and logo are registered marks of ACORD
(NS025r90tdo1)
SAIF Corporation 10/9/2015 1:28:52 PM PAGE 1/001 Fax Server
www.saif.com
Oregon Workers' Compensation sa; f
Certificate of Insurance corporation
Certificate holder:
CITY OF ASHLAND
340 S PIONEER STREET
ASHLAND, OR 97520
The policy of insurance listed below has been issued to the insured named below for the policy period
indicated. The insurance afforded by this policy is subject to all the terms, exclusions and conditions of
such policy; this policy is subject to change or cancellation at any time.
Insured Producer/contact
Howard Osvold SAIF Corporation
Aa Insulation Portland Service Center
PO Box 1119 971.242.5001 servic@saif.com
Ashland, OR 97520-0038
Issued 10/09/2015 Limits of liability
Policy 955089 Bodily Injury by Accident $500,000 each accident
Period 01/01/2015 to 01/01/2016 Bodily Injury by Disease $500,000 each employee
Body Injury by Disease $500,000 policy limit
Description of operations/locations/special items
Important
This certificate is issued as a matter of information only and confers no rights to the certificate holder. This certificate
does not amend, extend or alter the coverage afforded by the policies above. This
certificate does not constitute a contract between the issuing insurer, authorized representative or producer and the
certificate holder.
Authorized representative
D4~-
)(Z,
Kerry Barnett
President and CEO
400 High Street SE
Salem, OR 97312
P: 800.285.8525
F: 503.584.9812
Pd i cy_OLCA_Certifi cateOf I nsuran ce
OCT-09-2015 11:00 Ward Insurance 541 342 8280 P.003/031
ARTISANS ADVANTAGE ENHANCED COVERAGE ENDORSEMENT
THIS ENDORSEMENT CHANGES THE POLICY, PLEASE READ IT CAREFULLY,
This endorsement modifies insurance provided under the following:
BUILDING AND PERSONAL PROPERTY COVERAGE FORM
CAUSES OF LOSS - SPECIAL FORM
COMMERCIAL PROPERTY CONDITIONS
COMMERCIAL GENERAL LIABILITY COVERAGE FORM
When this endorsement is attached to the policy, insurance under the Building and Personal Property Coverage Form, the
Causes of Loss - Special Form, the Commercial Property Conditions and the Commercial General Liability Coverage Form is
enhanced to provide the coverages described in this endorsement. All other conditions of the policy continue to apply.
This coverage is subject to the provisions applicable to the Building and Personal Property Coverage Form, Causes of Loss -
Special Form, the Commercial Property Conditions and the General Liability Coverage Form.
SCHEDULE
Coverage Enhancements Limits of Insurance Each Location
Property Coverage
Premises Boundary 1,000 feet
Property Coverage Extensions
Newly Acquired or Constructed Property
Buildings $500,000. at Each Building
Business Personal Property $250,000. at Each Building
Personal Effects and Property of Others $ 25,000. at Replacement Cost
Valuable Papers and Records (Other than Electronic Data) $ 25,000.
Property Off-Premises (Including Laptops and Other Electronic Equipment) $ 15,000.
Outdoor Property (Named Perils) $ 1,000. pertreelshrub, max, limit $25,000.
Non-Owned Detached Trailers $ 10,000.
Accounts Receivable $ 50,000.
Property in Transit (Including Laptops and Other Electronic Equipment) $ 15,000.
Fine Arts $ 25,000.
Property Additional Coverages
Debris Removal $ 25,000.
Fire Department Service Charge $ 5,000.
Pollutant Clean-up and Removal $ 15,000.
Electronic Data $ 25,000.
Interruption of Computer Operations $ 15,000.
Arson Reward $ 5,000.
Water Back-Up and Sump Overflow $ 25,000.
Brands and Labels $ 25,000.
Employee Theft $ 10,000.
Business Income Including Extra Expense $ 25,000.
Business Income from Dependent Properties $ 10,000.
Claims Expenses $ 10,000•
Inventory or Appraisal Cost $ 5,000.
Money and Securities
Inside $ 10,000.
Outside $ 5,000.
Off Premises Power Failure - Direct Damage $ 10,000.
Ordinance or Law Coverage
Coverage A Included within Building Limit.
Coverages B and C Combined 25% of Bldg. Limit, $150,000. maximum
Outdoor Signs $ 10,000,
Recharging of Fire Extinguishers $ 5,000.
Unauthorized Business Card Use $ 5,000,
Forgery or Alteration $ 10,000,
Salespersons Samples $ 2,500.
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Inland Marine Coverages
Installation Coverage $ 10,000.
Contractors Equipment Coverages:
Small Tools $ 5,000. (Maximum limit per item $1,000)
Employee Small Tools $ 1,000. (Maximum limit per item $250)
Leased and Rented Equipment $ 5,000.
Rental Reimbursement $ 1,000.
General Liability Additional Coverages
Blanket Additional Insured (Including Primary Non-Contributing Coverage) Included in Each Occurrence Limit
Mobile Equipment Broadened Coverage Included in Each Occurrence Limit
Aggregate Limit Per Project Included in Each Occurrence Limit
Blanket Waiver Included in Each Occurrence Limit
Voluntary Property Damage Coverage $ 2,500.
The following applies to coverages under this endorsement only.
Property Coverage
The phrase'within 100 feet of the described premises' used in Paragraphs a.(5)(b), b. and c.(2) under A.1. Covered Property
of the BUILDING AND PERSONAL PROPERTY COVERAGE FORM and Paragraph 2.c.(1) under C. Limitations of the
CAUSES OF LOSS - SPECIAL FORM is replaced by the phrase 'within 1,000 feet of the described premises'.
Property Coverage Extensions
Paragraph A.5. Coverage Extensions of the BUILDING AND PERSONAL PROPERTY COVERAGE FORM is deleted in its
entirety and replaced by the following:
5. Coverage Extensions
Except as otherwise provided, the following Extensions apply to property located in or on the building described in the
Declarations or in the open (or in a vehicle) within 1,000 feet of the described premises.
If a Coinsurance percentage of 80% or more or, a Value Reporting period symbol, is shown in the Declarations, you may
extend the insurance provided by this Coverage Part as follows:
a. Newly Acquired Or Constructed Property
(1) Buildings
If this policy covers Building, you may extend that insurance to apply to:
(a) Your new buildings while being built on the described premises; and
(b) Buildings you acquire at locations, other than the described premises, intended for;
(i) Similar use as the building described in the Declarations; or
(ii) Use as a warehouse.
The most we will pay for loss or damage under this Extension is $500,000 at each building.
(2) Your Business Personal Property
(a) If this policy covers Your Business Personal Property, you may extend that insurance to apply to:
(i) Business personal property, including such property that you newly acquire, at any location you acquire, at
any location you acquire other than at fairs, trade shows or exhibitions;
(ii) Business personal property, including such property that you newly acquire, located at your newly
constructed or acquired buildings at the location described in the Declarations, or
(iii) Business personal property that you newly acquire, located at the described premises.
The most we will pay for loss or damage under this Extension is $250,000 at each building.
(b) This Extension does not apply to:
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(i) Personal property of others that is temporarily in your possession in the course of installing or performing
work on such property; or
(ii) Personal property of others that is temporarily in your possession in the course of your manufacturing or
wholesaling activities.
(3) Period of Coverage
With respect to insurance on or at each newly acquired or constructed property, coverage will end when any of the
following first occurs:
(a) This policy expires;
(b) 30 days expire after you acquire or begin construction of that part of the building that would qualify as covered
property; or
(c) You report values to us.
We will charge you additional premium for values reported from the date you acquire the property or begin
construction of that part of the building that would qualify as covered property.
b. Personal Effects And Property Of Others
(1) You may extend the insurance that applies to Your Business Personal Property to apply to:
(a) Personal effects owned by you, your officers, your partners or members, your managers or your employees.
(b) Personal property of others in your care, custody or control.
This Extension does not apply to employee tools.
(2) The most we will pay for loss or damage under this Extension is $25,000 at each described premises. Cur payment
for loss of or damage to personal property of others will only be for the account of the owner of the property.
(3) Extension Of Replacement Cost To Personal Property Of Others
(a) Replacement Cost coverage is extended to apply to personal property of others.
(b) Paragraphs 3.b.(1) and 4. under G. Optional Coverages of the BUILDING AND PERSONAL PROPERTY
COVERAGE FORM are deleted and all-other provisions of the Replacement Cost Optional Coverage apply to
replacement cost on personal property of others,
(c) With respect to replacement cost on the personal property of others the following limitation applies:
If an item of personal property of others is subject to a written contract which governs your liability for loss or
damage to that item, then valuation of that item will be based on the amount for which you are liable under such
contract, but not to exceed the lesser of the replacement cost of the property or the applicable Limit of
Insurance.
c. Valuable Papers And Records (Other Than Electronic Data)
(1) You may extend the insurance that applies to Your Business Personal Property to apply to direct physical loss or
damage to valuable papers and records that you own, or that are in your care, custody or control, caused by or
resulting from a Covered Cause of Loss. This Extension includes the cost to research lost information on valuable
papers and records for which duplicates do not exist. But this Extension does not apply to valuable papers and
records which exist as electronic data. Electronic data has the meaning described under Property Not Covered;
Electronic Data.
(2) Coverage under this Extension is limited to the'specified causes of loss" as defined in the CAUSES OF LOSS -
SPECIAL FORM, and Collapse as set forth in that form.
(3) This Extension does not apply to.
(a) Property held as samples or for delivery after sale;
(b) Property in storage away from the premises shown in the Declarations.
(4) Section B. Exclusions in the CAUSES OF LOSS - SPECIAL FORM does not apply to this Extension, except for,
(a) Paragraph B.1.c. Governmental Action,
(b) Paragraph B.1.d. Nuclear Hazard,
(c) Paragraph B.11. War And Military Action;
(d) Paragraph B.2.f.;
(e) Paragraph B.2.g.; and
(f) Paragraph B.3.
(5) The most we will pay under this Extension for loss or damagetovaIuable papers and records in any oneoccunence
at each described premises is $25,000.
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For valuable papers and records not at a described premises, the most we will pay is $5,000 in anyone occurrence.
Such amounts are additional insurance. We will also pay for the cost of blank material for reproducing the records
(whether or not duplicates exist), and (when there is a duplicate) for the cost of labor to transcribe or copy the
records. The costs of blank material and labor are subject to the applicable Limit of Insurance on Your Business
Personal Property and therefore coverage of such costs is not additional insurance.
d. Property Off-Premises (Including Laptops And Other Electronic Equipment)
(1) You may extend the insurance provided by this Coverage Form to apply to your Covered Property while it is away
from the described premises, if it is.
(a) Temporarily at a location you do not own, lease or operate;
(b) In storage at a location you lease, provided the lease was executed after the beginning of the current policy
term; or
(c) At any fair, trade show or exhibition.
(2) This Extension does not apply to property:
(a) In or on a vehicle; or
(b) In the care, custody or control of your salespersons, unless the property is in such care, custody or control at a
fair, trade show or exhibition.
(3) The most we will pay for loss or damage under this Extension is $15,000.
e. Outdoor Property (Named Perils)
You may extend the insurance provided by this Coverage Form to apply to your outdoor fences, retaining walls (other
than retaining walls that are a part of a building), radio and television antennas (including satellite dishes), signs (other
than signs attached to buildings), trees, shrubs and plants (other than "stock" of trees, shrubs or plants), including debris
removal expense, caused by or resulting from any of the following causes of loss if they are Covered Causes of Loss:
(1) Fire;
(2) Lightning;
(3) Explosion;
(4) Vandalism;
(5) Vehicle Damage,
(6) Riot or Civil Commotion; or
(7) Aircraft.
The most we will pay for loss or damage under this Extension is $25,000, but not more than $1,000 for any one tree,
shrub or plant. These limits apply to any one occurrence, regardless of the types or number of items lost or damaged in
that occurrence.
f. Non-Owned Detached Trailers
(1) You may extend the insurance that applies to Your Business Personal Property to apply to loss or damage to trailers
that you do not own, provided that:
(a) The trailer is used in your business„
(b) The trailer is in your care, custody or control at the premises described in the Declarations; and
(c) You have a contractual responsibility to pay for loss or damage to the trailer.
(2) We will not pay for any loss or damage that occurs.
(a) While the trailer is attached to any motor vehicle or motorized conveyance, whether or not the motor vehicle or
motorized conveyance is in motion;
(b) During hitching or unhitching operations, or when a trailer becomes accidentally unhitched from a motor vehicle
or motorized conveyance.
(3) The most we will pay for loss or damage under this Extension is $10,000, unless a higher limit is shown in the
Declarations.
(4) This insurance is excess over the amount due (whether you can collect on it or not) from any other insurance
covering such property.
g. Accounts Receivable
(1) You may extend the insurance that applies to Your Business Personal Propertyte accounts receivable. Wewill pay:
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(a) All amounts due from your customers that you are unable to collect;
(b) Interest charges on any loan required to offset amounts you are unable to collect pending our payment of these
amounts;
(c) Collection expenses in excess of your normal collection expenses that are made necessary by "loss"; and
(d) Other reasonable expenses that you incur to re-establish your records of accounts receivable;
that result from direct physical loss or damage by any Covered Cause of Loss to your records of accounts
receivable,
(2) The most we will pay under this Extension for loss or damage in any one occurrence at each described "premises" is
$50,000.
(3) Section B.Exclusions in the CAUSES OF LOSS - SPECIAL FORM does not apply to this Extension, except for:
(a) Paragraph 113.1.c. Governmental Action;
(b) Paragraph B.1.d. Nuclear Hazard;
(c) Paragraph B.1.f. War And Military Action;
(d) Paragraph B.2.f.;
(e) Paragraph 6.2,g.; and
(f) Paragraph ll
(4) The following additional exclusion applies to the Extension.
We will not pay for,
(a) Loss or damage caused by or resulting from alteration, falsification, concealment or destruction of records of
accounts receivable done to conceal the wrongful giving, taking or withholding of "money," "securities' or other
property.
This exclusion applies only to the extent of the wrongful giving, taking or withholding,
(b) Loss or damage caused by or resulting from bookkeeping, accounting or billing errors or omissions.
(c) Any loss or damage that requires any audit of records or any inventory computation to prove its factual
existence,
h. Property In Transit (Including Laptops And Other Electronic Equipment)
F.1. underAdditional Coverage Extensions of the CAUSES OF LOSS - SPECIAL FORM is deleted and replaced with
the following:
1. Property In Transit (Including Laptops And Other Electronic Equipment)
This Extension applies only to your personal property to which this form applies.
a. You may extend the insurance provided by this Coverage Part to apply to your personal property (other than
property in the care, custody or control of your salespersons) in transit more than 1,000 feet from the described
premises. Property must be in or on a motor vehicle you own, lease or operate while between points in the
coverage territory.
b. Loss or damage must be caused by or result from one the following causes of loss.
(1) Fire. lightning, explosion, windstorm or hail, riot or civil commotion, or vandalism.
(2) Vehicle collision, upset or overturn. Collision means accidental contact of yourvehicle with another vehicle
or object. It does not mean your vehicle's contact with the road bed.
(3) Theft of an entire bale, case or package by forced entry into a securely locked body or compartment of the
vehicle. There must be visible marks of the forced entry.
c. The most we will pay for loss or damage under this Extension is $15,000,
i, Fine Arts
(1) You may extend the insurance that applies to Your Business Personal Property to cover "fine arts" owned by
you and located on the premises described in the Declarations
(2) In addition to the exclusions in CAUSES OF LOSS - SPECIAL FORM we will not pay for loss or damage
caused by or resulting from repairing, restoration, or retouching processes.
(3) In the event of loss or damage, we will pay the actual cash value of the item. The actual cash value will be the
price you paid for the item, or the value as determined by an appraisal of the item not more than 360 days prior
to the date of loss or damage. In no event will the actual cash value exceed the amount necessary to repair or
replace the item with substantially like property.
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(4) The most we will pay for "fine arts" at any premises described in the Declarations is $25,000.
Each of these Extensions is additional insurance unless otherwise indicated. The Additional Condition, Coinsurance. does not
apply to these Extensions,
Property Additional Coverages
The following are Additional Coverages. The Additional Condition, Coinsurance, does not apply to these coverages,
A. Debris Removal
AA.a. of the BUILDING AND PERSONAL PROPERTY COVERAGE FORM is deleted and replaced as follows:
a. Debris Removal
(1) Subject to Paragraphs (3) and (4), we will pay your expense to remove debris of Covered Property caused by or
resulting from a Covered Cause of Loss that occurs during the policy period. The expenses will be paid only if they
are reported to us in writing within 180 days of the date of direct physical loss or damage,
(2) Debris Removal does not apply to costs to,
(a) Extract "pollutants" from land or water; or
(b) Remove, restore or replace polluted land or water.
(3) Subject to the exceptions in Paragraph (4), the following provisions apply:
(a) The most we will pay for the total of direct physical loss or damage plus debris removal expense is the Limit
of Insurance applicable to the Covered Property that has sustained loss or damage.
(b) Subject to (a) above, the amount we will pay for debris removal expense is limited to 25% of the sum of the
deductible plus the amount that we pay for direct physical loss or damage to the Covered Property that has
sustained lass or damage.
(4) We will pay up to an additional $25,000 for debris removal expense, for each location, in any one occurrence of
physical loss or damage to Covered Property, if one or both of the following circumstances apply:
(a) The total of the actual debris removal expense plus the amount we pay for direct physical loss or damage
exceeds the Limit of Insurance on the Covered Property that has sustained loss or damage.
(b) The actual debris removal expense exceeds 25% of the sum of the deductible plus the amount that we pay for
direct physical loss or damage to the Covered Property that has sustained loss or damage.
Therefore, if (4)(a) and/or (4)(b) apply, our total payment for direct physical loss or damage and debris removal
expense may reach but will never exceed the Limit of Insurance on the Covered Property that has sustained loss or
damage, plus $25,000.
(a) Examples
Example #1
Limit of Insurance $ 90,000
Amount of Deductible $ 500
Amount of Loss $ 50,000
Amount of Loss Payable $ 49,500
($50,000 - $500)
Debris Removal Expense $ 10,000
Debris Removal Expense
Payable $ 10,000
($10,000 is 20% of $50;000)
The debris removal expense is less than 25% of the sum of the loss payable plus the deductible. The sum of the
loss payable and the debris removal expense ($49,500 + $10,000 = $59,500) is less than the Limit of Insurance.
Therefore, the full amount of debris removal expense is payable in accordance with the terms of Paragraph (3).
Example #2
Limit of Insurance $ 90,000
Amount of Deductible $ 500
Amount of Loss $ 80,000
Amount of Loss Payable $ 79,500
($80,000 - $500)
Debris Removal Expense $ 35,500
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Debris Removal Expense
Payable
Basic Amount $ 10,500
Additional Amount $ 25,000
The basic amount payable for debris removal expense under the terms of Paragraph (3) is calculated as follows:
$80,000 ($79,500 + $500) x.25 = $20,000; capped at $10,500). The cap applies because the sum of the loss payable
($79,500) and the basic amount payable for debris removal expense ($10,500) cannot exceed the Limit of Insurance
($90,000).
The additional amount payable for debris removal expense is provided in accordance with the terms of Paragraph (4),
because the debris removal expense ($35,500) exceeds 25% of the loss payable plus the deductible ($35,500 is
44.375% of $80,000), and because the sum of the loss payable and debris removal expense ($79,500 + $35,500 =
$115,000) would exceed the Limit of Insurance ($90,000). The additional amount of covered debris removal expense is
$25,000, the maximum payable under Paragraph (4). Thus the total payable for debris removal expense in this example
is $35,500.
B. Fire Department Service Charge
AA.c. of the BUILDING AND PERSONAL PROPERTY COVERAGE FORM is deleted and replaced as follows:
c. Fire Department Service Charge
When the fire department is called to save or protect Covered Property from a Covered Cause of Loss, we will pay up to
$5,000 for your liability for fire department service charges.
(1) Assumed by contract or agreement prior to loss; or
(2) Required by local ordinance,
No Deductible applies to this Additional Coverage.
C. Pollutant Clean-up And Removal
AAA. of the BUILDING AND PERSONAL PROPERTY COVERAGE FORM is deleted and replaced as follows:
d. Pollutant Clean-up And Removal
We will pay your expense to extract "pollutants" from land or water at the described premises if the discharge, dispersal;
seepage, migration, release or escape of the "pollutants" is caused by or results from a Covered Cause of Loss that
occurs during the policy period. The expenses will be paid only if they are reported to us in writing within 180 days of the
date on which the Covered Cause of Loss occurs,
This Additional Coverage does not apply to costs to test for, monitor or assess the existence, concentration or effects of
"pollutants". But we will pay for testing which is performed in the course of extracting the "pollutants" from the land or
water.
The most we will pay under this Additional Coverage for each described premises is $15,000 forthe sum of all covered
expenses arising out of Covered Causes of Loss occurring during each separate 12 month period of this policy.
D. Electronic Data
AAA, of the BUILDING AND PERSONAL PROPERTY COVERAGE FORM is deleted and replaced as follows.,
f. Electronic Data
(1) Under this Additional Coverage, electronic data has the meaning described under Property Not Covered, Electronic
Data.
(2) Subject to the provisions of this Additional Coverage, we will pay for the cost to replace or restore electronic data.
which has been destroyed or corrupted by a Covered Cause of Loss. To the extent that electronic data is not
replaced or restored, the loss will be valued at the cost of replacement of the media on which the electronic data
was stored, with blank media of substantially identical type.
(3) In addition to the "specified causes of loss" as defined in the CAUSES OF LOSS -SPECIAL FORM, and Collapse
as set forth in that form, the following are covered causes of loss,
(a) A virus, harmful code or similar instruction introduced into or enacted on a computer system (including
electronic data) or a network to which it is connected, designed to damage or destroy any part of the system or
disrupt its normal operation. But there is no coverage for loss or damage caused by OF resulting from
manipulation of a computer system (including electronic data) by any em ployee, including a temporary or leased
employee, or by an entity retained by you or for you to inspect, design, install, modify, maintain, repair or replace
that system.
(b) Changes in your electrical power supply, including interruption, power surge, blackout or brownout, if the cause
of such event originates 100 feet or less from any premises described in the Declarations,
(c) Dishonest acts committed by your employees acting alone or in collusion with other persons, exceptyou or your
partners, directors or trustees, but theft by employees is not covered;
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(d) Dampness or dryness of atmosphere or changes in or extremes of temperature,
(e) Floods, surface water, waves, tides, tidal waves; overflow of anybody of water, or their spray, all whether driven
by wind or not; and
(f) Earth movement, such as an earthquake, landslide or earth sinking, rising or shifting.
(4) The most we will pay under this Additional Coverage - Electronic Data is $25,000 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.
E. Interruption Of Computer Operations
We will pay your necessary "Extra Expense" to continue normal operations caused by an interruption in computer operations
due to destruction or corruption of your electronic data due to a Covered Cause of Loss.
We will also pay for your actual "Business Income" if you must close all or part of your business due to destruction or
corruption of your electronic data due to a Covered Cause of Loss.
The most we will pay under this coverage is $15,000 for any one occurrence.
Under this Additional Coverage - Interruption Of Computer Operations, electronic data has the meaning set forth in
Paragraph 5. Limitation - Interruption of Computer Operations included in Additional Coverage - Business Income
Including Extra Expense of this form.
F. Arson Reward
We will reimburse you for an arson reward that you give to someone who discloses information that leads to the conviction of
a person or persons for arson at the premises described in the Declarations.
The most we will pay under this coverage is $5,000 each occurrence.
G. Water Back-Up And Sump Overflow
1. We will pay for direct physical loss or damage to Covered Property caused by or resulting from:
a. Water which backs up through or overflows from a sewer or drain; or
b. Water which overflows from a sump, even if the overflow results from mechanical breakdown of a sump pump or its
related equipment.
However, with respect to Paragraph b. above, we will not pay the cost of repairing or replacing a sump pump or its
related equipment in the event of mechanical breakdown.
2. The coverage described in Paragraph 1. above does not apply to loss or damage resulting from an insured's failure to.
a. Keep a sump pump or its related equipment in proper working condition; or
b. Perform the routine maintenance or repair necessary to keep a sewer or drain free from obstructions.
3. The most we will pay under this coverage is $25,000 each occurrence.
4. With respect to the coverage provided in this Additional Coverage -Water Back-Up and Sump Overflow, Paragraph
3. of the Water Exclusion included in this Policy does not apply.
H. Brands And Labels
If branded or labeled merchandise that is Covered Property is damaged by a Covered Cause of Loss, we may take all or
part of the property at an agreed or appraised value, If so, you may,
1. Stamp the word 'Salvage' on the merchandise or its containers, if the stamp will not physically damage the
merchandise; or
2. Remove the brands and labels, if doing so will not physically damage the merchandise or its containers to comply with
the law.
We will pay reasonable costs you incur to perform the activity described in Paragraphs 1. and 2. above. The most we will
pay for these costs and the value of the damaged property under this Additional Coverage is $25,000.
Payments under this Additional Coverage are subject to and not in addition to the Limits of Insurance.
1. Employee Theft
1. We will pay for direct loss of or damage to Your Business Personal Property and your "money' and "securities" resulting
from `theft' committed by any of your "employees" acting alone or in collusion with other persons (except you or your
partners, members or managers) with the manifest intent to,
a. Cause you to sustain loss or damage, and also
b. Obtain financial benefit (other than salaries, commissions.. fees, bonuses, promotions, awards, profit sharing..
pensions or other employee benefits earned in the normal course of employment) for:
(1) Any "employee"; or
(2) Any other person or organization.
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2. We will not pay for loss or damage:
a. Resulting from any dishonest or criminal act that you or any of your partners, members, officers, "managers,"
directors, trustees, authorized representatives or anyone to whom you entrustthe property for any purpose commit;
whether acting alone or in collusion with other persons; or
b. The only proof of which as to its existence or amount is one or both of the following:
(1) An inventory computation; or
(2) A profit and loss computation.
3. The most we will pay under this Additional Coverage for loss or damage in any one occurrence is $10,000.
4. All loss or damage:
a. Caused by one or more "employees", and
b. Involving a single act or series of related acts;
is considered one occurrence.
5. We will pay only for loss or damage you sustain through acts committed or events occurring during the policy period.
Regardless of the number of years this policy remains in force or the number of premiums paid, no Limit of Insurance
cumulates from year to year or period to period.
6. This Additional Coverage does not apply to loss caused by an "employee" after discovery by:
a. You, or
b. Any of your partners, officers or directors, or members or "managers" not in collusion with the "employee",
of any "theft" or any other dishonest act committed by that "employee" before or after being hired by you.
7. Extended Period To Discover Loss
a. We will pay for loss that you sustained prior to the effective date of termination or cancellation of this policy, which is
discovered by you no later than 1 year from the date of that termination or cancellation,
b. However, this extended period to discover loss terminates immediately upon the effective date of any other
insurance obtained by you replacing in whole or in part the insurance afforded by this policy, whether or not such
other insurance provides coverage for loss sustained prior to its effective date.
8. If you discover a loss or damage during the policy period that you (or any predecessor in interest) sustained during the
period of any prior insurance that you could have recovered under that insurance except that the time within which to
discover loss or damage had expired, we will pay for it under this Additional Coverage, provided;
a. This Additional Coverage became effective at the time of cancellation or termination of the prior insurance; and
-tHs I Coverage ge I IQU Il UCCII III CIIGLI VYI ICI I LIIC c~GtS or
b. The loss or damage would have been caverti7g ~dditiona _
events causing the loss or damage were committed or occurred.
9. The insurance under Paragraph 8. above is provided within, and not in addition to, the Limit of Insurance applying to this
Additional Coverage and is limited to the lesser of the amount recoverable under:
a. This Additional Coverage as of its effective date; or
b. The prior insurance, had it remained in effect.
10. None of the exclusions in Section B. Exclusions of the CAUSES OF LOSS- SPECIAL FORM apply to LmployeeTheft
Coverage provided under this endorsement except:
a. 6.1.c. Governmental Action;
b. B.1.d. Nuclear Hazard; and
c. B.1.f. War And Military Action.
11. We will not pay for loss as specified below.
a. Acts Committed by You or Your Partners
Loss resulting from any dishonest or criminal act committed by your or any of your partners whether acting alone or
in collusion with other persons.
b_ Indirect Loss
Loss that is an indirect result of any act or occurrence covered by this insurance including, but not limited to, loss
resulting from.
(1) Your inability to realize income that you would have realized had there been no loss of, or loss from damage to
"money" and "securities".
(2) Payment of damages of any type for which you are legally liable. But, we will pay compensatory damages
arising directly from a loss covered under this Additional Coverage.
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(3) Payment of costs, fees or other expenses you incur in establishing either the existence or the amount of loss
under this Additional Coverage.
c. Legal Expenses
Expenses related to any legal action,
12. Ownership Of Property; Interests Covered
The property covered under this Additional Coverage is limited to property:
a. That you own or lease;
b. That you hold for others, or
c. For which you are legally liable, except for property inside the premises of a "client" of yours.
However, this coverage is for your benefit only. It provides no rights or benefits to any other person or organization. Any
claim for loss that is covered under this coverage must be presented by you.
13. Valuation -Settlement
Subject to the Limit of Insurance, we will pay for;
a. Loss of "money" but only up to and including its face value, We may, at our option, pay for loss of "money" issued
by any country other than the United States of America:
(1) At face value in the "money" issued by that country; or
(2) In the United States of America dollar equivalent determined by the rate of exchange published in The Wall
Street Journal on the day the loss was discovered.
b. Loss of "securities" but only up to and including their value at the close of business on the day that loss was
discovered. We may, at our option:
(1) Pay the value of such "securities" or replace them in kind, in which event you must assign to us all your rights.
title and interest in and to those "securities";
(2) Pay the cost of any Lost Securities Bond required in connection with issuing duplicates of the "securities."
However, we will be liable only for the payment of so much of the cost of the bond as would be charged for a
bond having a penalty not exceeding the lesser of the:
(a) Value of the "securities" at the close of business on the day the loss was discovered; or
(b) Limit of Insurance.
J. Business Income Including Extra Expense
1. Coverage
a. Business Income
Business Income means the:
(1) Net Income (Net Profit or Loss before income taxes) that would have been earned or incurred; and
(2) Continuing normal operating expenses inpurred, including payroll.
For manufacturing risks, Net Income includes the net sales value of production.
Business Income includes "Rental Value."
We will pay the actual loss of Business Income you sustain due to the necessary "suspension" of your "operations"
during the "period of restoration." The "suspension" must be caused by direct physical loss of or damage to property
at the premises described in the Declarations; including personal property in the open (or in a vehicle) within 1,000
feet, caused by or resulting from any Covered Cause of Loss.
b. Extra Expense
Extra Expense means necessary expenses you incur during the "period of restoration" that you would not have
incurred if there had been no direct physical loss or damage to property caused by or resulting from a Covered
Cause of Loss.
We will pay Extra Expense (other than the expenses to repair or replace property) to:
(1) Avoid or minimize the "suspension" of business and to continue operations at the premises described in the
Declarations or at replacement premises or temporary locations; including relocation expenses and costs to
equip and operate the replacement location or temporary location,
(2) Minimize the "suspension" of business if you cannot continue "operations."
We will pay Extra Expense to repair or replace property, but only to the extent it reduces the amount of loss that
otherwise would have been payable under this Additional Coverage.
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2. Additional Coverages
a. Alterations And New Buildings
We will pay for the actual loss of Business Income you sustain and necessary Extra Expense you incur due to direct
physical loss or damage at the described premises caused by or resulting from any Covered Cause of Loss to:
(1) New buildings or structures, whether complete or under construction;
(2) Alterations or additions to existing buildings or structures; and
(3) Machinery, equipment, supplies or building materials located on orwithin 1,000feet of the described premises
and:
(a) Used in the construction, alterations or additions; or
(b) Incidental to the occupancy of new buildings.
If such direct physical loss or damage delays the start of "operations," the "period of restoration" for Business
Income Coverage will begin on the date "operations" would have begun ifthedirect physical loss ordamage had not
occurred.
b. Civil Authority
When a Covered Cause of Loss causes damage to property other than property at the described premises, we will
pay for the actual loss of Business Income you sustain and necessary Extra Expense caused by action of civil
authority that prohibits access to the described premises, provided both of the following apply:
(1) Access to the area immediately surrounding the damaged property is prohibited by civil authority as a result of
the damage, and the described premises are within that area but are not more than one mile from the damaged
property; and
(2) The action of civil authority is taken in response to dangerous physical conditions resulting from the damage or
continuation of the Covered Cause of Loss that caused the damage, or the action is taken to enable a civil
authority to have unimpeded access to the damaged property.
Civil Authority Coverage for Business Income will begin 72 hours after the time of the first action of civil authority
that prohibits access to the described promises and will apply fora period of up to four consecutive weeks from the
date on which such coverage began.
Civil Authority for Extra Expense will begin immediately after the time ofthe first action of civil authority that prohibits
access to the described premises and will end:
(1) Four consecutive weeks after the date of that action; or
(2) When Civil Authority for Business Income ends;
whichever is later.
c. Extended Business Income
(1) Business Income Other Than "Rental Value"
If the necessary "suspension" of your "operations" produces a Business Income loss payable under this
additional coverage, we will pay for the actual loss of Business Income you incur during the period that:
(a) Begins on the date property (except "finished stock") is actually repaired, rebuilt or replaced and
"operations" are resumed; and
(b) Ends on the earlier of:
(i) The date you could restore your "operations," with reasonable speed, to the level which would generate
the "business income" amount that would have existed if no direct physical loss or damage had
occurred; or
(ii) 30 consecutive days after the date determined in (1)(a) above.
However, Extended Business Income does not apply to loss of Business Income incurred as a result of
unfavorable business conditions caused by the impact of the Covered Cause of Loss in the area where the
described premises are located.
Loss of Business Income must be caused by direct physical loss or damage at the described premises caused
by or resulting from any Covered Cause of Loss.
(2) "Rental Value"
If the necessary "suspension" of your "operations" produces a "Rental Value" loss payable underthis additional
coverage, we will pay for the actual loss of "Rental Value" you incur during the period that:
(a) Begins on the date property is actually repaired, rebuilt or replaced and tenantability is restored, and
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(b) Ends on the earlier of
(i) The date you could restore tenant occupancy, with reasonable speed, to the level which would generate
the "Rental Value" that would have existed if no direct physical loss or damage had occurred; or
(ii) 30 consecutive days after the date determined in (2)(a) above.
However, Extended Business Income does not apply to loss of "Rental Value" incurred as a result of
unfavorable business conditions caused by the impact of the Covered Cause of Loss in the area where the
described premises are located.
Loss of "Rental Value" must be caused by direct physical loss or damage atthe described premises caused by
or resulting from any Covered Cause of Loss.
3. Limits of Insurance
The most we will pay for loss under this Additional Coverage - Business Income Including Extra Expense in any one
occurrence is $25,000.
Payments under the following additional coverages will not increase the applicable Limit of Insurance:
a. Alterations and New Buildings;
b. Civil Authority; or
c. Extended Business Income,
4. Valuation
The following is added to E.7. Valuation of the BUILDING AND PERSONAL PROPERTY COVERAGE FORM,
g. The amount of Business Income loss will be determined based on:
(1) The Net Income of the business before the direct physical loss or damage occurred;
(2) The likely Net Income of the business if no loss or damage occurred, but not including any Net Income that
would likely have been earned as a result of an increase in the volume of business due to favorable business
conditions caused by the impact of the Covered Cause of Loss on customers or on other businesses;
(3) The operating expenses, including payroll expenses, necessary to resume "operations" with the same quality of
service that existed just before the direct physical loss or damage, and
(4) Other relevant sources of information, including.
(a) Your financial records and accounting procedures;
(b) Bills, invoices and other vouchers; and
(b) Deeds, liens or contracts.
h. The amount of Extra Expense will be determined based on:
(1) All expenses that exceed the normal operating expenses that would have been incurred by "operations" during
the "period of restoration" if no direct physical loss or damage had occurred. We will deduct from the total of
such expenses,
(a) The salvage value that remains of any property bought for temporary use during the "period of restoration"
once "operations" are resumed, and
(b) Any Extra Expense that is paid for by other insurance, except for insurance that is written subject to the
same plan, terms, conditions and provisions as this insurance, and
(2) Necessary expenses that reduce the Business Income loss that otherwise would have been incurred.
i. Loss Payment
We will pay for covered loss within 30 days after we receive the sworn proof of loss, if you have complied with all of
the terms of this Additional Coverage and;
(1) We have reached an agreement with you on the amount of loss; or
(2) An appraisal award has been made.
j. Resumption of Operations
We will reduce the amount of your:
(1) Business Income loss, other than Extra Expense, to the extent you can resume your "operations," in whole or in
part, by using damaged or undamaged property (including merchandise or stock) atthe described premises or
elsewhere.
(2) Extra Expense loss to the extent you can return "operations" to normal and discontinue such Extra Expense.
If you do not resume "operations," or do not resume "operations" as quickly as possible, we will pay based on the
length of time it would have taken to resume "operations" as quickly as possible.
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5. Limitation - Interruption of Computer Operations
a. Coverage for Business Income does not apply when action is taken to avoid or minimize a "suspension" of
"operations" caused by destruction or corruption of electronic data, or any loss or damage to electronic data, except
as provided under the Additional Coverage - Interruption Of Computer Operations.
b. Coverage for Extra Expense does not apply when action is taken to avoid or minimize a "suspension" of "operations"
caused by destruction or corruption of electronic data, or any loss or damage to electronic data, except as provided
under the Additional Coverage - Interruption Of Computer Operations,
c. Electronic data means information, facts or computer programs stored as or on, created or used on, or transmitted
to or from computer software (including systems and applications software), on hard or floppy disks, CD-ROMs,
tapes, drives, cells, data processing devices or any other repositories of computer software which are used with
electronically controlled equipment. The term computer programs, referred to in the foregoing description of
electronic data, means a set of related electronic instructions which direct the operations and functions of a
computer or device connected to it, which enable the computer or device to receive, process, store, retrieve or send
data.
K. Business Income From Dependent Properties
1. We will pay for the actual loss of Business Income you sustain due to the necessary "suspension" of your "operations"
during the coverage period. The "suspension" must be caused by direct physical loss of or damage at the premises of a
dependent property caused by or resulting from a Covered Cause of Loss.
However, this Additional Coverage does not apply when the only loss to dependent property is loss or damage to
electronic data, including destruction or corruption of electronic data. If the dependent property sustains loss or damage
to electronic data and other property, coverage tinder this Additional Coverage will not continue once the other property
is repaired, rebuilt or replaced. Electronic data has the meaning set forth in Paragraph 5. Limitation - Interruption of
Computer Operations included in Additional Coverage- Business Income Including Extra Expense of this form.
The most we will pay under this Additional Coverage is $10,000 in any one occurrence.
2. We will reduce the amount of your Business Income loss, other than Extra Expense, to the extent you can resume
"operations," in whole or in part, by using any other available:
a. Source of materials, or
b. Outlet for your products.
3. If you do not resume "operations," or do not resume "operations"as quickly as possible, we will pay based on the length
of tune it would have taken to resume "operations" as quickly as possible.
4. Business Income, as it pertains to this Additional Coverage - Business Income From Dependent Properties,
means:
a. Net income (net profit or loss before income taxes) that would have been earned or incurred if no physical loss or
damage had occurred, but not including any net income that would likely have been earned as a result of an
increase in the volume of business due to favorable business conditions caused by the impact of the Covered
Cause of Loss; and
b. Continuing normal operating expenses incurred, including ordinary payroll.
5. Dependent property means property operated by others whom you depend on to:
a. Deliver materials or services to you, or to others for your account. But services does not mean water,
communication or power supply services,
b. Accept your products or services;
c. Manufacture your products for delivery to your customers under contract for sale, or
d. Attract customers to your business.
The dependent property must be located in the coverage territory of this policy.
6. The coverage period for Business Income under this Additional Coverage:
a. Begins 72 hours after the time of direct physical loss or damage caused by or resulting from any Covered Cause of
Loss at the premises of the dependent property, and
b. Ends on the date when the property at the premises of the dependent property should be repaired, rebuilt or
replaced with reasonable speed and similar quality.
7. The Business Income coverage period, as stated in Paragraph 6., does not include any increased period required due to
the enforcement of any ordinance or law that:
a. Regulates the construction, use or repair.. or requires the tearing down, of any property; or
b. Requires any insured or others to test for, monitor, clean up, remove, contain.. treat, detoxify or neutralize, or in any
way respond to or assess the effects of "pollutants".
The expiration date of this policy will not reduce the Business Income coverage period.
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L. Claims Expenses
In the event of covered loss or physical damage we will pay up to $10,000 in any one occurrence as an additional Limit of
Insurance to cover reasonable expenses incurred by you at our specific request to assist us in:
1. The investigation of a claim or suit; or
2. The determination of the amount of loss, such as taking inventory, or auditing business records.
M. Inventory Or Appraisal Cost
We will pay up to $5,000 each occurrence for the cost of any inventory or appraisal required as a result of direct physical loss
or damage to covered property caused by or resulting from a Covered Cause of Loss.
N. Money And Securities
1. We will pay for loss of "money" and "securities" used in your business caused by "theft," disappearance or destruction.
The most we will pay for loss in any one "occurrence" under this coverage is:
a. $10,000 for "money" and "securities" while inside the "premises" or a "banking premises."
b. $5,000 for "money" and "securities" while in the care and custody of a "messenger.''
2. Additional Exclusions Applicable to Money And Securities
We will not pay for loss as specified below:
a. Loss resulting from accounting or arithmetical errors or omissions;
b. Loss resulting from the giving or surrendering of property in any exchange or purchase.
a. Loss of property contained in any money operated device unless the amount of "money" deposited in it is recorded
by a continuous recording instrument in the device.
d. Loss resulting from any dishonest or criminal act committed by any of your "employees," directors, trustees or
authorized representatives:
(1) Acting alone or in collusion with other persons; or
(2) While performing services for you or otherwise.
e. Loss of property after it has been transferred or surrendered to a person or place outside the "premises' or "banking
premises."
(1) On the basis of unauthorized instructions, or
(2) As a result of a threat to do:
(a) Bodily harm to any person; or
(b) Damage to any property.
(3) But, this exclusion does not apply to loss of "money" and "securities" while outside the "premises" or "banking
premises" in the care and custody of a "messenger" if you.
(a) Had no knowledge of any threat at the time the conveyance began; or
(b) Had knowledge of a threat at the time the conveyance began, but the loss was not related to the threat.
f. Loss resulting from your, or anyone acting on your express or implied authority, being induced by any dishonest act
to voluntarily part with title to or possession of any property.
3. Additional Conditions
a. The reference to "money" and "securities" in Subparagraph A.2.a. Property Not Covered of the BUILDING AND
PERSONAL PROPERTY COVERAGE FORM does not apply to the coverage provided by this form.
b. You must keep records of all "money" and "securities" so we can verify the amount of loss or damage.
0. Off Premises Power Failure - Direct Damage
1. With respect to coverage provided in this Additional Coverage - Off Premises Power Failure - Direct Damage,
Exclusion 11i of the CAUSES OF LOSS - SPECIAL FORM is deleted in its entirety and replaced as follows
e. Utility Services
The failure of utility service (other than Power Supply Service) supplied to the described premises, however caused,
ifthe failure occurs away from the described premises. Failure includes lack of sufficient capacity and reduction in
supply.
But if the failure of utility service results in a Covered Cause of Loss, we will pay for the loss or damage caused by
that Covered Cause of Loss.
This exclusion does not apply to the Business Income coverage or to Extra Expense coverage. Instead, the Special
Exclusion in Paragraph B.4.a.(1) applies to these coverages.
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2. The following Additional Coverage is added:
Off Premises Power Failure - Direct Damage
a. We will pay for loss of or damage to Covered Property caused by an interruption in Pourer Supply Service to the
described premises. The interruption in Power Supply Service must result from direct physical loss or damage by a
Covered Cause of Loss to property that is located off the described premises.
b. Coverage under this Additional Coverage does not apply to loss or damage to electronic data, including destruction
or corruption of electronic data. The term electronic data has the meaning set forth in Paragraph 5. Limitation -
Interruption of Computer Operations included in Additional Coverage - Business Income Including Extra
Expense of this form.
c. Power Supply Service means the following types of property supplying electricity, steam or gas to the described
premises:
(1) Utility generating plants,
(2) Switching stations;
(3) Substations,
(4) Transformers; and
(5) Transmission lines, including overhead transmission lines.
d. The most we will pay for any one occurrence is $10,000.
P. Ordinance Or Law Coverage
Exclusion B.1.a. Ordinance Or Law of the CAUSES OF LOSS - SPECIAL FORM is deleted and the following coverage
applies:
1. Ordinance or Law Coverage applies only if the following is satisfied,
a. The ordinance or law:
(1) Regulates the demolition, construction or repair of buildings, or establishes zoning or land use requirements at
the described premises, and
(2) Is in force at the time of loss.
But coverage under this endorsement applies only in response to the minimum requirements of the ordinance or
law. Losses and costs incurred in complying with recommended actions or standards that exceed actual
requirements are not covered under this endorsement,
b. (1) The building sustains direct physical damage that is covered under this policy and such damage results in
enforcement of the ordinance or law; or
(2) The building sustains both direct physical damage that is covered underthis policy and direct physical damage
that is not covered under this policy; and the building damage in its entirety results in enforcement of the
ordinance or law.
(3) But if the building sustains direct physical damage that is not covered under this policy, and such damage is the
subject of the ordinance or law, then there is no coverage under this additional coverage even if the building has
also sustained covered direct physical damage.
c. In the situation described in 1.b.(2) above, we will riot pay the full amount of loss otherwise payable under the terms
of Coverage A and/or Coverage Band C Combined of this additional coverage. Instead, we will pay a proportion
of such loss; meaning the proportion that the covered direct physical damage bears to the total direct physical
damage.
However, if the covered direct physical damage, alone, would have resulted in enforcement of the ordinance or law;
then we will pay the full amount of loss otherwise payable under the terms of Coverages A and/or B and C
Combined of this endorsement.
2, Under this coverage, we will not pay for loss due to any ordinance or law that:
a. You were required to comply with before the loss, even if the building was undamaged; and
b. You failed to comply with.
3. Under this coverage, we will not pay for.
a. Enforcement of any ordinance or law which requires 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 "fungus," wet or dry rot or bacteria; or
b. The costs associated with the enforcement of any ordinance or law which requires any insured or others to test for,
monitor, clean up, remove, contain, treat, detoxify or neutralize, or in any way respond to, or assess the effects of
"pollutants," "fungus," wet or dry rot or bacteria,
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4. Coverage A: Coverage for Loss to the Undamaged Portion of the Building
a. If a Covered Cause of Loss occurs to covered building property at the premises described in the Declarations, we
will pay for the loss in value of the undamaged portion of the building as a consequence of enforcement of an
ordinance or law that requires demolition of undamaged parts of the same building.
b. Coverage A is included within the Limit of Insurance applicable to the covered building property at the premises
described in the Declarations. Coverage A does not increase the Limit of Insurance.
c. Loss will be determined as follows:
(1) If the Replacement Cost Coverage Option applies and the property is repaired or replaced, on the same
premises or another premises, we will not pay more than the lesser of:
(a) The amount you actually spend to repair, rebuild or reconstruct the building, but not for more than the
amount it would cost to restore the building on the same premises and to the same height, floor area, style
and comparable quality of the original property insured; or
(b) The Limit of Insurance shown in the Declarations as applicable to the covered building property.
(2) If the Replacement Cost Coverage Option applies and the property is not repaired or replaced; or if the
Replacement Cost Coverage Option does not apply, we will not pay more than the lesser of,
(a) The actual cash value of the building at the time of loss; or
(b) The Limit of Insurance shown in the Declarations as applicable to the covered building property.
5. Coverages B: Demolition Cost and C: Increased Cost of Construction (Combined)
If a Covered Cause of Loss occurs to covered building property, we will pay up to 25 percent (25%) of the Limit of
Insurance applicable to building property at the premises described in the Declarations, subject to a maximum limit of
$150,000, for the total of all covered losses (combined) for Demolition Cost and Increased Cost of Construction. Subject
to these limits of coverage, the following conditions will apply.
a. Demolition Cost
(1) With respect to the building that has sustained covered direct physical damage, we will pay the cost to demolish
and clearthe site of undamaged parts of the same building, as a consequence of enforcement of an ordinance
or law that requires demolition of such undamaged property.
(2) The Coinsurance Additional Condition does not apply to Demolition Cost,
(3) We will not pay more than the amount you actually spend to demolish and clear the site of the premises
described in the Declarations.
b. Increased Cost of Construction
(1) With respect to the building that has sustained covered direct physical damage, we will pay the increased cost
to:
(a) Repair or reconstruct damaged portions of that building property; and/or
(b) Reconstruct or remodel undamaged portions of that building property, whether or not demolition is required
when the increased cost is a consequence of enforcement of the minimum requirements of the ordinance or
law.
However.
(a) This coverage applies only if the restored or remodeled property is intended for similar occupancy as the
current property, unless such occupancy is not permitted by zoning or land use ordinance or law.
(b) We will not pay for increased cost of construction if the building is not repaired, reconstructed or remodeled.
The Coinsurance Additional Condition does not apply to Increased Cost of Construction.
(2) When covered building property is damaged or destroyed by a Covered Cause of Loss and Increased Cost of
Construction applies to that property in accordance with b.(1) above, coverage for the Increased Cost of
Construction also applies to repair or reconstruction of the following, subject to the same conditions stated in
b.(1):
(a) The cost of excavations, grading, backfilling and filling;
(b) Foundation of the building;
(c) Pilings; and
(d) Underground pipes, flues and drains.
The items listed in (2)(a) through (2)(d) above are deleted from Property Not Covered, but only with respect to
the coverage described in this provision 5.b.
(3) Loss Payment will be determined as follows-.
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(a) We will not pay:
(i) Until the property is actually repaired or replaced, at the same or another premises, and
(ii) Unless the repairs or replacement are made as soon as reasonably possible after the loss or damage;
not to exceed two years. We may extend this period in writing during the two years.
(b) If the building is repaired or replaced at the same premises, or you elect to rebuild at another premises, the
most we will pay is the increased cost of construction at the same premises.
Q. Outdoor Signs
1. We will pay for direct physical loss of or damage to all Outdoor Signs at the premises described in the Declarations:
a. owned by you; or
b. owned by others but in your care, custody or control.
2. None of the exclusions in Section B. Exclusions of the CAUSES OF LOSS - SPECIAL FORM apply to Outdoor Signs
provided under this coverage except:
a. B.1.c. Governmental Action;
b. B.1.d. Nuclear Hazard; and
c. B.1.f. War and Military Action.
3. We will not pay for loss or damage caused by or resulting from:
a. wear and tear;
b. hidden or latent defect;
c. rust;
d. corrosion; or
e. mechanical breakdown.
The most we will pay for loss of or damage in any one occurrence is $10,000.
R. Recharging Of Fire Extinguishers
We will pay for expenses you incur for the recharging of Fire Extinguishers made necessary by the fighting of a fire at the
premises described in the Declarations or adjacent to such property.
The most we will pay for any one occurrence is $5,000.
S. Unauthorized Business Card Use
We will pay for the loss of "money" resulting from theft, forgery or unauthorized use of credit, debit or charge cards issued in
the business name to you, your partners or officers, including.
1. Fund transfer cards;
2. Charge plates; and
3. Telephone cards.
The most we will pay under this Additional Coverage during each 12 month period of this policy (including any extension of
less than one year), is $5,000.
We will not pay for loss resulting from the use of any credit, debit or charge card if not customarily used in your business.
T. Forgery Or Alteration
1. We will pay for loss resulting directly from "forgery" or alteration of checks, drafts, promissory notes, or similar written
promises, orders or directions to pay a sum certain in "money" that are.
(a) Made or drawn by or drawn upon you; or
(b) Made or drawn by one acting as your agent;
or that are purported to have been so made or drawn.
For the purposes of this Insuring Agreement, a substitute check as defined in the Check Clearing forthe 21st Century
Act shall be treated the same as the original it replaced.
2. If you are sued for refusing to pay any instrument covered in Paragraph 1. above, on the basis that it has been forged or
altered, and you have our written consent to defend against the suit, we will pay for any reasonable legal expenses that
you incur and pay in that defense.
3. The most we will pay for any loss in any one "occurrence" including legal expenses is $10,000.
U. Salespersons Samples
1. We will pay for loss of or damage to Covered Property from a Covered Cause of Loss to samples (including their
containers) of your stock in trade that are:
(a) Owned by you; or
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(b) The property of others for which you are legally liable.
But this coverage applies only while such property is:
(a) In the custody of your salespersons or authorized sales representatives;
(b) In your custody, if you are an individual, while you are acting as a salesperson, or
(c) In due course of transit to or from your premises and your salespersons or authorized sales representatives.
3. Additional Exclusion Applicable to Salespersons Samples
We will not pay for loss as specified below.
Theft from an unattended vehicle unless at the time of theft, its windows, doors and compartments were closed and
locked and there are visible signs that the theft was the result of forced entry.
4. The most we will pay under this coverage is $2,500 in any one occurrence.
Inland Marine Coverages
The following coverages are added under 4. Additional Coverages of the BUILDING AND PERSONAL PROPERTY
COVERAGE FORM. The Additional Condition, Coinsurance, does not apply to these coverages.
A. Installation Coverage
1. Coverage
a. We will pay for loss of or damage to the following property:
(1) Materials, supplies, equipment, machinery and fixtures owned by you or in your care, custody or control, and
which are to be installed by you or at your direction; and
(2) Temporary structures built or assembled by you on site, including cribbing, scaffolding and construction forms.
This property is covered while.
(1) At any job site you do not own, lease or operate;
(2) Awaiting and during installation, or awaiting acceptance by the purchaser,
(3) At a "temporary storage location."
But property in transit is not covered except as provided under Property Extension - Property In Transit.
b. This Additional Coverage does not apply to,
(1) An existing building or structure to which an addition, alteration, improvement or repair is being made,
(2) Property stored at a permanent warehouse or storage yard that you own,
(3) A plan, blueprint, design or specification, and
(4) Machinery, tools, equipment, supplies or similar property that will not become a permanent part of the project.
This includes contractors equipment and other tools belonging to a contractor or sub-contractor.
c. We will not pay for loss or damage caused by or resulting from any of the following:
(1) The cost to make good or replace faulty or defective materials or workmanship;
(2) Penalties for noncompletion or non-compliance with any contract terms or conditions;
(3) Testing including stand-up performance, stress, pressure, overload testing of the covered property;
(4) A fault, defect, deficiency, error or omission in a plan, blueprint, design or specification; or
(5) The weight of a load when it exceeds the designed capacity of any property covered under this Additional
Coverage to lift, move or support the load from any position.
2. The following is added to E.7. Valuation of the BUILDING AND PERSONAL PROPERTY COVERAGE FORM:
f. As respects your materials, supplies, machinery, fixtures and equipment and similar property of others in your care,
custody or control which will become a permanent part of your installation, fabrication or erection project, the value
of covered property may be valued as follows:
(1) Actual Cost to Repair, Replace or Rebuild. The value of covered property will be based on the lesser of the
following accounts.
(a) The actual cost to repair, replace or rebuild the covered property with materials of like kind and quality. The
actual cost may include material, labor and reasonable overhead expenses; or
(b) The amount you actually spend to repair, replace or rebuild the covered property.
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This valuation provision does not apply to Paragraphs (2) or (3) below.
(2) Pair or Set. The value of a lost or damaged article which is part of a pair or set is based on a reasonable
proportion of the value of the entire pair or set. The loss is not considered a total loss of the pair or set.
(3) Loss to Parts. The value of a lost or damaged part of an item that consists of several parts when it is complete
is based on the value of only the lost or damaged part or the cost to repair or replace it.
3. Limit of Insurance
The most we will pay for loss or damage to property covered under this Additional Coverage is $10,000 per occurrence.
This is the most we will pay regardless of,
a. The number of job sites you do not own, lease or operate; or
b. "Temporary storage locations."
4. With respect to this coverage, Installation Coverage, Section D. Deductible of the BUILDING AND PERSONAL
PROPERTY COVERAGE FORM is deleted and replaced by the following:
D. Deductible
We will not pay for loss or damage in any one occurrence until the amount of loss or damage exceeds $500. We
will then pay the amount of loss or damage in excess of $500 up to the applicable limit of insurance.
5. Paragraph e. of C.1. Limitations of the CAUSES OF LOSS -SPECIAL FORM is replaced by the following:
e. Property that is missing, where the only evidence of the loss or damage is a shortage disclosed on taking inventory,
or other instances where there is no physical evidence to show what happened to the property.
But, this limitation does not apply to covered property in the custody of a carrier for hire.
6. The following are added to F. Additional Conditions of the BUILDING AND PERSONAL COVERAGE FORM:
3. Carriers for Hire
You may accept bills of lading or shipping receipts issued by carriers for hire that limit their liability to less than the
actual cash value of the covered property.
4. Coverage provided under the Installation Coverage will end when one of the following first occurs:
(1) This policy expires or is cancelled.
(2) The property covered under this Additional Coverage is accepted by the purchaser;
(3) Your interest in the property covered under this Additional Coverage ceases;
(4) You abandon the project to be performed by you for the purchaser, with no intention to complete it;
(5) 90 days after the project to be performed by you for the purchaser is completed, unless we specify a different
date in writing.
B. Contractors Equipment Coverage
1. Your "Small Tools" and "Small Tools" Owned by Your Employees
We will pay for your "small tools" and "small tools" owned by your employees. The most we will pay is as follows:
Limit for Your "Small Tools": $5,000. (maximum limit per item $1,000)
Limit for "Small Tools" Owned by Your Employees: $1,000, (maximum limit per item $250)
Leased and Rented Equipment
We will pay for contractors' equipment that is leased or rented from others to you. Contractors' equipment means
machinery, equipment, and tools of a mobile nature that you use in your contracting, installation, erection, or moving
operations or projects. The most we will pay for property leased or rented from others is $5,000.
a. Coverage applies only to covered property while:
(1) At the described premises,
(2) On a "client's" premises; or
(3) In transit directly between the described premises and a "client's" premises and while in a motor vehicle owned,,
leased or operated by the named insured.
b. The coverage provided by this Additional Coverage applies only to loss caused by or resulting from the following
causes of loss and only if they are Covered Causes of Loss:
(1) Fire:
(2) Lightning;
(3) Explosion;
(4) Aircraft;
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(5) Vandalism and malicious mischief, or
(6) Theft.
c. The following is added to A.2. Property Not Covered of the BUILDING AND PERSONAL PROPERTY
COVERAGE FORM.
r. Property while stored or operated underground in connection with any mining operations.
d. The following is added to Paragraph 2. of B. Exclusions of the CAUSES OF LOSS -SPECIAL FORM:
n. We will not pay for loss or damage caused by puncture, blowout and road damage to tires and tubes mounted
on vehicles. However, we do pay for puncture, blowout or road damage caused by a specified peril.
o. We will not pay for loss caused by humidity, dampness, dryness or changes in or extremes of temperature.
p. We will not pay for loss caused by the weight of a load which, under the operating conditions at the time of a
loss, exceeds the registered lifting capacity of any equipment or machine.
q. We will not pay for loss due to theft or mysterious disappearance from any vehicle or attached container. We
will pay for loss due to burglary when there are signs of forcible entry to a locked vehicle or container.
e. E.7. Valuation of the BUILDING AND PERSONAL PROPERTY COVERAGE FORM is deleted and replaced by the
following:
7. Valuation
We will determine the value of covered property in the event of loss or damage as follows:
a. At actual cash value at the time of the loss (with a deduction for depreciation) except as provided in
Paragraphs b. and c. following,
b. Pair or Set. The value of a lost or damaged article which is part of a pair or set is based on a reasonable
proportion of the value of the entire pair or set. The loss is not considered a total loss of the pair or set,
c. Loss to Parts. The value of a lost or damaged part of an item that consists of several parts when it is
complete is based on the value of only the lost or damaged part or the cost to repair or replace it.
2. Rental Reimbursement
In the event of loss by a covered peril to covered contractors' equipment that you own, we will reimburse you for your
expense to rent similar equipment while your equipment is inoperable. The most we will reimburse you for rental
reimbursement expenses is $1,000. We will continue to reimburse you for the rental of equipment after the expiration
date of this coverage provided the loss occurred before the expiration date.
We will not reimburse you:
a. If you can continue or resume your operations with similar equipment that is available to you at no additional
expense to you; or
b. For the rental expense of any equipment unless you make every reasonable effort to repair, replace or rebuild the
inoperable equipment after the covered loss orcur-s_
3. With respect to this Additional Coverage, Contractors Equipment Coverage, Section D. Deductible of the BUILDING
AND PERSONAL PROPERTY COVERAGE FORM is deleted and replaced by the following:
D. Deductible
We will not pay for loss or damage in any one occurrence until the amount of loss or damage exceeds $500. We will
then Pay the amount of lo5a or domagc, in exoca~5 of $GOO up to the applicable limit of ii iuui ui iue.
We will not reimburse you for the rental of equipment until after 72 hours have passed since the covered property
was rendered inoperable. After 72 hours have passed, we will only reimburse you for the rental expense that you
actually incur.
The deductible of $500 does not apply to rental reimbursement expenses.
General Liability Additional Coverages
The following Additional Coverages are added to the COMMERCIAL GENERAL LIABILITY COVERAGE FORM.
A. Blanket Additional Insured Coverage
1. SECTION II-WHO IS AN INSURED ofthe COMMERCIAL GENERAL LIABILITY COVERAGE FORM is amended to
include as an insured any person or organization (referred to as Additional Insured) whom you are required to add as an
Additional Insured on this policy under:
a. A written contract or agreement; and
b. Where a certificate of insurance showing that person or organization as an additional insured has been issued; and
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c. When the written contract or agreement and certificate of insurance are currently in effect or becoming in effect
during the term of the policy and executed prior to the "bodily injury," "property damage," or "personal and
advertising injury."
2. The insurance provided to the Additional Insured is limited as follows:
a. The Additional Insured is only an additional insured for:
(1) "Bodily injury," "property damage," or "personal and advertising injury" caused in whole or in part by negligent
acts or omissions of the Named Insured or anyone directly or indirectly employed by the Named Insured orfor
whose acts a Named Insured may be liable.
(2) Liability arising out of your ongoing operations for the Additional Insured by or for you. A person's or
organization's status as an insured under this coverage ends when your operations for that insured are
completed.
b. The Limits of Insurance applicable to the Additional Insured are those specified in the written contractor agreement
but not more than the Limits of Insurance specified in the Declarations for this policy. The Limits of Insurance
applicable to the Additional Insured are inclusive of and not in addition to the Limits of Insurance shown in the
Declarations for the Named Insured.
3. In addition to the other exclusions applicable to Section I, Coverages A., B, and C. of the COMMERCIAL GENERAL
LIABILITY COVERAGE FORM, the insurance provided to the Additional Insured does not apply to..
a. "Property damage" to:
(1) Property owned, used, occupied by, loaned or rented to the Additional Insured;
(2) Property in the care, custody or control of the Additional Insured or over which the Additional Insured are for any
purpose exercising physical control, or
(3) "Your work" performed for the Additional Insured.
b. "Bodily injury," "property damage," or "personal and advertising injury" arising out of an architect's, engineer's or
surveyor's rendering or failure to render any professional services for you, for the Additional Insured or for others,
including, but not limited to.
(1) The preparing, approving or failure to prepare or approve maps, drawings, opinions, reports, surveys, change
orders, designs or specifications, or
(2) Supervisory, inspection or engineering services.
c. "Bodily injury" or "property damage" occurring after:
(1) All work, including materials, parts or equipment furnished in connection with such work, on the project (other
than service, maintenance or repairs) to be performed by or on behalf of the additional insured atthe site of the
covered operations has been completed, or
(2) That portion of "your work" out of which the injury or damage arises has been put to its intended use by any
person or organization otherthan another contractor or subcontractor engaged in performing operations for a
principal as a part of the same project.
4. SECTION IV -COMMERCIAL GENERAL LIABILITY CONDITIONS, Paragraph 4. Other Insurance, is amended to
add the following subparagraph:
d. Additional Insured's Other Insurance As Excess Insurance
To the extent required by an "insured contract," this insurance is primary on behalf of the Additional Insured, and any
other insurance maintained by the Additional Insured is excess and not contributory with this insurance. If the
"insured contract" does not require this provision, then Paragraph a. above will apply,
B. Mobile Equipment Broadened Coverage
V.12.f.(1) of the COMMERCIAL GENERAL LIABILITY COVERAGE FORM is replaced by the following:
(1) Equipment designed primarily for.
(a) Snow Removal,
(b) Road maintenance, but not construction or resurfacing; or
(c) Street cleaning.
Except the above provisions do not apply to self-propelled vehicles of less than 1,000 pounds gross vehicle weightwhich
are not intended for use on a highway.
C. Aggregate Limit Per Project
The General Aggregate Limit under SECTION III - LIMITS OF INSURANCE of the COMMERCIAL GENERAL LIABILITY
COVERAGE FORM applies separately to each of your projects away from premises owned by or rented to you.
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D. Blanket Waiver Of Transfer Of Rights Of Recovery Against Others To Us
The Transfer Of Rights Of Recovery Against Others To Us Condition (SECTION IV - COMMERCIAL GENERAL
LIABILITY CONDITIONS) is amended by the addition of the following:
We waive any right of recovery we may have against any person or organization to whom you by written contract orwritten
agreement have waived your own right or recovery for loss caused by that person or organization because of payments we
make for injury or damage arising out of your ongoing operations or "your work" done under a written contract or written
agreement with that person or organization and included in the "products-completed operations hazard."
This provision does not apply unless the written contract or written agreement has been executed prior to the "occurrence" or
offense giving rise to the "bodily injury" or "property damage."
E. Voluntary Property Damage Coverage
1. We will, at your request, pay but not defend any claim for"property damage" to the property of others otherwise excluded
under A.2.j.(4), (5) and (6) of the COMMERCIAL GENERAL LIABILITY COVERAGE FORM provided that.
a. Such "property damage" takes place while such property is in your care, custody or control, or is property of others
over which you, for any purpose, are exercising or have exercised physical control; and
b. Such "property damage" takes place away from any premises you own, rent or lease; and
c. Such "property damage" takes place within the "coverage territory" and during the policy term; and
d. Such "property damage" takes place only during your operations that are known to us, are scheduled on the policy
and for which a premium has been charged.
2. The insurance under this additional coverage does not apply to "property damage" to property:
a. Held by you for servicing, repair, storage or sale at premises owned by, rented or leased to you;
b. While being transported by or caused by the ownership, maintenance.. operation, use, "loading or unloading" of any
"auto," watercraft or aircraft; or
c. Owned or occupied by or rented to you.
3. Deductible
This additional coverage will apply only to that amount of any loss in each "occurrence" that exceeds $500.
The terms of the policy with respect to your duties in the event of "occurrence," claim or "suit" and the Company's right to
investigate, negotiate and settle any claim or "suit" apply irrespective of the application of the deductible amount of $500.
We may pay any part or all of the deductible amount of $500 to effect settlement of any claim or "suit." Upon notification
of the action taken, you must promptly reimburse us for such part of the deductible amount as has been paid by us.
4. Limits of Liability
The Limit of Liability for this additional coverage shall not exceed $2,500 for each "occurrence" and is the limit of the
Company's liability for all damages on account of each claim or "suit" covered herein. The annual aggregate Limit of
Liability is $2,500 and is, subject to the above provisions respecting each claim, the total limit of the Company's liability
for all damages.
5. Settlement
In the event of loss covered by this additional coverage, you shall, if requested by us, replace the property or furnish the
labor and materials necessary for repairs thereto at actual cost to you, excluding prospective profit or overhead charges
of any nature. Any property so paid for or replaced shall, at our option, become the property of the Company. Payment
hereunder shall not constitute an admission of liability of you or, except as stated herein, of the Company.
Additional Conditions
A. Insurance Under Two Or More Coverages
The following is added to Paragraph C. Insurance under Two or More Coverages of the COMMERCIAL PROPERTY
CONDITIONS.
If a Coverage Form is attached to this policy that provides a limit for any coverage provided by this endorsement; the limit
shown in the SCHEDULE and the coverage provided by this endorsement are deleted and replaced by the limit and
coverage provided by the Coverage Form.
B. Limits Of Insurance
Regardless of the number of buildings at a location covered by this endorsement; the most we will pay under this Coverage
Enhancement endorsement in any one occurrence is the applicable Limits of Insurance shown in the SCHEDULE on page 1
of this endorsement.
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C. Deductibles
The Deductible described in section D. of the BUILDING AND PERSONAL PROPERTY COVERAGE FORM applies to
each of the Coverage Enhancements except as shown below:
We will not pay for loss or damage in any one occurrence until the amount of loss or damage exceeds $500. We will then
pay the amount of loss or damage in excess of $500 up to the applicable Limit of Insurance for the following enhancements.
1. Personal Effects and Property of Others
2. Valuable Papers and Records (Other than Electronic Data)
3. Property Off-Premises (Including Laptops and Other Electronic Equipment)
4. Outdoor Property (Named Perils)
5. Accounts Receivable
6, Property in Transit (Including Laptops and Other Electronic Equipment)
7. Fine Arts
8. Electronic Data
9. Water Back-Up and Sump Overflow
10. Employee Theft
11. Money and Securities
12. Forgery or Alteration
No deductible provisions apply to the following enhancements:
1. Fire Department Service Charge
2. Arson Reward
3. Claims Expenses
4. Inventory or Appraisal Cost
5. Recharging of Fire Extinguishers
6. Rental Reimbursement
D. Additional Definitions
The following Additional Definitions apply to this endorsement only:
1. "Banking Premises" means the interior of that portion of any building occupied by a banking institution or similar safe
depository.
2. "Business Income" means the:
a. Net income (Net Profit or Loss before income taxes) that would have been earned had no loss occurred; and
b. Continuing normal operating expenses incurred, including payroll.
For manufacturing risks, Net Income includes the net sales value of production.
3. "Client" as used in Employee Theft Coverage means any entity for whore you perform services under a written
agreement.
4. "Client" as used in Contractors Equipment Coverage means an individual, company or organization with whom you
have a written contract or work order for your services for a described premises and have billed for your services.
5. "Employee" as used in Employee Theft and Money And Securities Coverages means:
a. "Employee" means:
(1) Any natural person,
(a) While in your service or for 30 days after termination of service;
(b) Who you compensate directly by salary, wages or commissions; and
(c) Who you have the right to direct and control while performing services for you;
(2) Any natural person who is furnished temporarily to you:
(a) To substitute for a permanent "employee" as defined in Paragraph (1) above, who is on leave, or
(b) To meet seasonal or short-term work load conditions,
while that person is subject to your direction and control and performing services for you, excluding,
however. any such person while having care and custody of property outside the "premises";
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(3) Any natural person who is leased to you under a written agreement between you and a labor leasing firm, to
perform duties related to the conduct of your business, but does not mean a temporary employee as defined in
Paragraph (2) above,
(4) Any natural person who is your director or trustee while that person is handling "money" or "securities."
(5) Any natural person who is a former "employee," director, partner, member (an owner of a limited liability
company represented by its membership interest, who also may serve as a manager), manager (a person
serving in a directorial capacity for a limited liability company), representative ortrustee retained as a consultant
while performing services for you; or
(6) Any natural person who is a guest student or intern pursuing studies or duties, excluding, however, any such
person while having care and custody of "money" or "securities" outside the "premises."
b. "Employee" does not mean:
(1) Any agent, broker, factor, commission merchant, consignee, independent contractor or representative of the
same general character; or
(2) Any manager (a person serving in a directorial capacity for a limited liability company), director or trustee except
while performing acts coming within the scope of the usual duties of an "employee."
6. "Extra Expense" means necessary expenses you incur during the "period of restoration" that you would not have
incurred if there had been no direct physical loss or damageto property caused by orresulting from a Covered Cause of
Loss. Coverage pertains to expenses (other than the expense to repair or replace property) which are incurred to
a. Avoid or minimize the "suspension" of business and to continue "operations" at the described premises or at
replacement premises or temporary locations, including relocation expenses and costs to equip and operate the
replacement location or temporary location,
b. Minimize the "suspension" of business if you cannot continue "operations."
7. "Fine Arts" means paintings, etchings, pictures, tapestries, art glass windows, valuable rugs, statuary, marbles,
bronzes, antique furniture, rare books, antique silver, manuscripts, porcelains, rare glass, bric-a-brac, and similar
property of rarity, historical value or artistic merit.
8. "Finished Stock" means stock you have manufactured. Finished stock also includes whiskey and alcoholic products
being aged,
9. "Forgery" means the signing of the name of another person or organization with intent to deceive; it does not mean a
signature which consists in whole or in part of one's own name signed with or without authority, in any capacity, for any
purpose.
10. "Loss" as used in the Accounts Receivable Extension means accidental loss or damage.
11. "Manager" as used in Employee Theft Coverage means a person serving in a directorial capacity for a limited liability
company,
12. "Messenger" means you, any of your partners or any employee while having care and custody of the property outside
the "premises."
13. "Money" means:
a. Currency, coins and bank notes whether or not in current use, and
b. Travelers checks, register checks and money orders held for sale to the public.
14. "Occurrence" as used in the Money And Securities Coverage means an act or series of related acts involving one or
more persons; or an act or event, or a series of related acts or events not involving any person.
15. "Occurrence" as used in the Forgery Or Alteration Coverage means all loss caused by any person or in which that
person is involved. whether the loss involves one or more instruments.
16. "Operations" as used in the Business Income Including Extra Expense and Business Income From Dependent
Properties Coverages "Extra Expense" Definition means your business activities occurring at the address shown in the
Declaration that you occupy for your business.
17. "Period of Restoration" means the period of time that:
a. Begins with the date of direct physical loss or damage caused by or resulting from any Covered Cause of Loss at
the described premises; and
b. Ends on the date when the property at the described premises should be repaired, rebuilt or replaced with
reasonable speed and similar quality.
"Period of Restoration" does not include any increased period required duetothe enforcement of any ordinance of law
that:
(1) Regulates the construction, use or repair, or requires the tearing down of any property, or
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(2) Requires any insured or others to test for, monitor, cleanup, remove, contain, treat, detoxify or neutralize, or in
anyway respond to, or assess the effects of "pollutants."
18. "Pollutants" as used in the Business Income From Dependent Properties Coverage and the "Period of
Restoration" Definition 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.
19. "Premises" as used in the Money And Securities Coverage and "Employee" and "Messenger" Definitions means
the interior of that portion of any building you occupy in conducting your business.
20. "Premises" as used in the Accounts Receivable Extension means that interior of the building atthe address shown in
the Declarations that you occupy for your business,
21. "Rental Value" means the:
a. Total anticipated rental income from tenant occupancy of the premises described in the Declarations as furnished
and equipped by you, and
b. Amount of all charges which are the legal obligation of the tenant(s) and which would otherwise be your obligations.,
and
c. Fair rental value of any portion of the described premises which is occupied by you.
22. "Securities" means negotiable and non-negotiable instruments or contracts representing either "money" or other
property and include:
a. Tokens, tickets, revenue and other stamps whether or not in current use; and
b. Evidences of debt issued in connection with credit or charge cards, which are not of your own issue but does not
include "money."
23. "Small Tools" means any tool which can be moved easily by one person without mechanical assistance and/or can be
hand held for the purpose of doing labor.
24. "Suspension" means the slowdown or cessation of your business activities.
25. "Temporary Storage Location" means a location where property that is to become a permanent part of a completed
project is stored while waiting to be delivered to the job site:
a. That you do not own, lease or operate; and
b. Where work is in progress, or will begin in 30 days.
26. "Theft" as used in the Employee Theft and Money And Securities Coverages means the unlawful taking of "money"
or "securities" to the deprivation of the insured.
All Other Conditions of this Policy apply.
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COMMERCIAL AUTO
BA 20 60 04 11
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
COMMERCIAL AUTO COVERAGE FORM
ENHANCEMENT ENDORSEMENT
This endorsement modifies insurance provided under the following:
BUSINESS AUTO COVERAGE FORM
With respect to coverage provided by this endorsement; the provisions of the Coverage Form apply unless
modified by the endorsement.
A. SECTION II - LIABILITY COVERAGE, A.I. Who Is An Insured, is amended by the addition of the following.
1. Broadened Named Insured
Any organization you newly acquire or form; other than a partnership, joint venture or limited liability com-
pany, and over which you maintain ownership or majority interest, and there is no other similar insurance
available to that organization,
However, insurance provided by this provision:
a. Is afforded only until the 180th day after you acquire or form the organization or the end of the policy
period, whichever is earlier;
b. Does not apply to "bodily injury" or "property damage" resulting from an "accident" that occurred be-
fore you acquired or formed the organization;
c. Does not apply to an insured under any other automobile liability policy.. or would be an insured under
such a policy but for the exhaustion of such policy's limits of insurance or the termination of such poli-
cy; and
d. No newly acquired or formed organization is an insured with respect to any current or past partner-
ship, joint venture or limited liability company that is not shown as a Named Insured in the Declara-
tions,
2. Blanket Additional Insured
Any person or organization with respect to the operation, maintenance, or use, of a covered "auto" that
you are required to include as additional insured on the Coverage Form in a written agreement or written
"insured contract" that is signed and executed by you before the "bodily injury" or "property damage" oc-
curs.
However, such person or organization is an insured:
a, Only for "bodily injury" or "property damage" caused by an "accident" which takes place after you exe-
cuted the written agreement or written "insured contract";
b. Is in effect during the policy period; and
c. Only for damages to which this insurance applies and only to the extent that person or organization
qualifies as an "insured" under the Who Is An Insured provision contained in Section II,
B. Employee Hired Autos
1. SECTION II - LIABILITY COVERAGE, A.1. Who Is An Insured, is amended by the addition of the follow-
ing:
An "employee" of yours is an "insured" while operating an "auto" hired or rented under a contract or
agreement in that "employee's" name, with your permission, while performing duties related to the conduct
of your business.
2. Under SECTION IV - BUSINESS AUTO CONDITIONS, B.5., Other Insurance, Paragraph b. is deleted
and replaced with the following:
b. For Hired Auto Physical Damage Coverage, the following are deemed to be covered "autos" you own:
(1) Any covered "auto"you lease, hire, rent or borrow; and
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(2) Any covered "auto" hired or rented by your "employee" under a contract in that individual "employ-
ee'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".
If Employee Hired Autos Coverage Form CA 20 54 is attached to this policy, then the Employee Hired Autos
coverage described above does not apply.
C. Supplementary Payments
Under SECTION 11 - LIABILITY COVERAGE, A..2., Coverage Extensions, a. Supplementary Payments,
Paragraphs a.(2) and a.(4) are deleted and replaced by the following:
(2) Up to $2,500 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.
D. Transportation Expenses
Under SECTION III - PHYSICAL DAMAGE COVERAGE, AA., Coverage Extensions, a. Transportation
Expenses is deleted in its entirety and replaced with the following.
a. Transportation Expenses
We will pay up to $50 per day to a maximum of $1,500 for temporary transportation expense incurred by
you because of the total theft of a covered "auto" of the private passenger type. We will pay only for those
covered "autos" for which you carry either Comprehensive or Specified Causes Of Loss Coverage, includ-
ing Theft Coverage. We will pay for temporary transportation expenses incurred during the period begin-
ning 48 hours after the theft and ending, regardless of the policy's expiration, when the covered "auto" is
returned to use or we pay for its "loss".
E. Loss Of Use Expenses
Under SECTION III - PHYSICAL DAMAGE COVERAGE, A. Coverage, 4. Coverage Extensions, the last
paragraph under b. Loss Of Use Expenses is replaced as follows.
However, the most we will pay for any expenses for loss of use is $65 per day, to a maximum of $1,000.
F. Theft Expense
Under SECTION III - PHYSICAL DAMAGE COVERAGE, AA., Coverage Extensions, the following is add-
ed:
If Comprehensive Coverage is purchased on a covered "auto", and that covered "auto" is stolen, we will pay
the expense of returning that stolen auto to you. The limit for this coverage extension is $1,000.
G. Rental Agency Expense
Under SECTION III - PHYSICAL DAMAGE COVERAGE, AA., Coverage Extensions, the following is add-
ed;
We will pay the following expenses that you or any or your "employees" are legally obligated to pay because of
a written contract or written agreement entered into for use of a rental vehicle in the conduct of your business.
Maximum amount we will pay for any one written contract or written agreement.
1. $2,500 for loss of income incurred by the rental agency during the period of time that vehicle is out of use
due as a result of actual damage to, or "loss" of, that vehicle, including income lost due to absence of that
vehicle for use as a replacement;
2. $2,500 for decrease in trade-in value of the rental vehicle because of actual damage to that vehicle arising
out of a covered "loss", and
3. $2,500 for administrative expenses incurred by the rental agency, as stated in the written contract or writ-
ten agreement.
4. Maximum total amount payable under Paragraphs 1., 2. and 3. combined is $7,500,
H. Hired Auto Physical Damage
Under SECTION III - PHYSICAL DAMAGE COVERAGE, AA., Coverage Extensions, the following is
added:
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If hired "autos" are covered "autos" for Liability Coverage, and if Comprehensive, Specified Causes Of Loss,
or Collision Coverage as provided under this Coverage Part, then coverage is extended to "autos" you hire
without a driver, subject to the following:
1. The most we will pay for "loss" to any hired "auto" is $35,000 or the actual cash value or cost to repair or
replace, whichever is less, minus a deductible.
2. The deductible will be equal to the largest deductible applicable to any owned "auto" for that coverage.
Coverage provided by this extension applies only to "autos" you hire of the private passenger type or light truck
(gross vehicles weight 10,000 pounds or less) type vehicles.
If a limit for Hired Auto - Physical Damage is shown in the Declarations, then that limit replaces, and is not
added to, the $35,000 limit indicated above.
1. Airbag Coverage
Under SECTION III - PHYSICAL DAMAGE COVERAGE, B. Exclusions, Paragraph 3.a. is replaced as fol-
lows:
a. Wear and tear, freezing, mechanical or electrical breakdown. However, mechanical or electrical break-
down does not apply to the unintended discharge of an airbag. Any loss covered under this provision is
excess over any other collectible insurance or warranty.
J. Glass Breakage
Under SECTION III - PHYSICAL DAMAGE COVERAGE, D., Deductible, the following is added:
However, if Comprehensive or Specified Causes Of Loss Coverage is purchased on a covered "auto", any
deductible shown in the Declarations as applying to the covered "auto" will not apply to glass breakage if the
damaged glass is repaired in a manner acceptable to us rather than replaced.
K. Rental Reimbursement
SECTION III - PHYSICAL DAMAGE COVERAGE is amended by the addition of the following,
If Physical Damage Coverage for which a premium is shown, is designated in the Declarations for a covered
"auto" we will provide Rental Reimbursement Coverage.
1. Vie will pay for rental reimbursement expenses incurred by you for the rental of an "auto" because of
"loss" to a covered "auto". Payment applies in addition to the otherwise applicable amount of each cover-
age you have on a covered "auto". No deductible applies to this coverage.
2. 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 following number of days:
a. 30 days, or
b. The number of days reasonably required to repair or replace the covered "auto". If "loss' is caused by
theft, this number of days is added to the number of days it takes to locate the covered 'auto" and re-
turn it to you.
3. Our payment is limited to the lesser of the following amounts:
a. $40 any one day, or
b. Necessary and actual expenses incurred.
4. This coverage does not apply while there are spare or reserve "autos" available to you for your operations.
5. If "loss" results from the total theft of a covered "auto" of the private passenger type, we will pay under
this coverage only that amount of your rental reimbursement expenses which is not already provided for
under Paragraph A.4. Coverage Extensions, a. Transportation Expenses,
If Rental Reimbursement Coverage Form CA 99 23 is attached to this policy, then the Rental Reimbursement
Coverage described above does not apply.
L. Blanket Waiver of Subrogation
Under SECTION IV - BUSINESS AUTO CONDITIONS, A. Loss Conditions, Paragraph 5., Transfer Of
Rights Of Recovery Against Others To Us, is amended by the addition of the following:
We will, however, waive any right of recovery we may have against any person or organization because of
payments we make for "bodily injury" or "property damage" arising out of the operation of a covered "auto"
when you have assumed liability for such "bodily injury" or "property damage" under an "insured contract".
BA 20 60 04 11 Includes copyrighted material of Insurance Services Office, Inc., Page 3 of 4
with its permission
OCT-09-2015 11:36 Ward Insurance 541 342 8280 P.031/031
This provision does not apply unless the permit has been issued or the written contract or written agreement
has been executed, prior to the "bodily injury" or "property damage".
M. Unintentional Failure To Disclose Hazards
Under SECTION IV - BUSINESS AUTO CONDITIONS, B. General Conditions, Paragraph 2. Concealment,
Misrepresentation Or Fraud, is amended by the addition of the following:
The unintentional omission of, or unintentional error in, any information given by you shall not prejudice your
rights under this insurance. However, this provision does not affect our right to collect additional premium or
exercise our right of cancellation or non-renewal.
N. Duties In The Event Of Accident, Claim, Suit Or Loss
Under SECTION IV - BUSINESS AUTO CONDITIONS, A.2. Duties In The Event Of Accident, Claim, Suit
Or Loss, Paragraph 2.a., is deleted and replaced with the following;
a. In the event of "accident", claim, "suit" or "loss", you must give us or our authorized representative prompt
notice of the "accident" or "loss" after it becomes known to.
(1) You, if you are an individual;
(2) A partner or member, if you are a partnership or joint venture,
(3) A member or manager, if you are a limited liability company; or
(4) An executive officer or insurance manager if you are an organization other than a partnership, joint
venture or limited liability company.
Notice should include the following:
(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.
Your "employees" may know of an "accident", claim, "suit'' or "loss". This will not mean that you have such
knowledge of an "accident', claim, ''suit" or "loss
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TOTAL P.031
Page 1 / 1
ASHLAND PARK COMMISSION
20 E MAIN ST. DATE PO NUMBER
ASHLAND, OR 97520 10/26/2015 00506
(541) 488-5300
VENDOR: 000014 SHIP TO:
AA INSULATION
PO BOX 1119
ASHLAND, OR 97520
FOB Point: Ashland, Oreqon Req. No.:
Terms: Net 30 days Dept.:
Req. Del. Date: Contact: Bruce Dickens
Special Inst: Confirming? No
Quantity Unit Description Unit Price Ext. Price
Install R-38 hiqh-density insullation 4,263.00
and vapor barrier in celilinq of Daniel
Meyer Pool Buildinq
Contract for Goods and Services
Beqinninq date: 10/16/2015
Completion date: 11/30/2015
i
SUBTOTAL 4,263.00
BILL TO: TAX 0.00
FREIGHT 0.00
TOTAL 4,263.00
Account Number Project Number Amount Account Number Project Number Amount
E 411.12.00.00.70420 E 000079.120 4,263.00
Aphorized Signature VENDOR COPY
r6RM#3 CITY OF
r8 ~ ~~nz ~d a Pu rch-se Ordei ASHLAND
ci
REQUISITION Date of request: 10115115
Required date for delivery: 10/29/15
Vendor Name A A Insulation Attn: Howard Osvold
Address, City, State, Zip PO Box 1119, Ashland, OR 97520
Contact Name & Telephone Number
Fax Number Tel: 541/535-1818 Fax: 541/535-1575 howard.osvold@gmail, com
SOURCING METHOD
❑ Exempt from Competitive Bidding ❑ Emergency
❑ Reason for exemption: ❑ Invitation to Bid (Copies on file) E] Forr~tif-vu~~md,nn_an(i_n ithnri7atl~~
❑ AMC 2.50 Date approved by Council: ❑ Writ
❑ Written quote or proposal attached
❑ Small Procurement Coopera `
Less than $5,000
❑ Request for Proposal (Copies on file) ❑ Stat _
❑ Direct Award Date approved by Council: Con
❑ Verbal/Written quote(s) or proposal(s) ❑ Stat v J
Intermediate Procurement ❑ Sole Source Con - -
GOODS & SERVICES ❑ Applicable Form (#5,6, 7 or 8) ❑ Oth
$5,000 to $100,000 ❑ Written quote or proposal attached CAg(
ol J G i
® (3) Written quotes and solicitation attached ❑ Form #4, Personal Services $5K to $75K
PERSONAL SERVICES El Special Procurement Intergovernmental Agreement
$5,000 to $75,000 ❑ Form #9, Request for Approval ❑ Agency
❑ Less than $35,000, by direct appointment ❑ Written quote or proposal attached Date original contract approved by Council:
❑ (3) Written proposals/written solicitation Date approved by Council: (Date)
❑ Form #4, Personal Services $51K to $75K Valid until: -(Date) I
Description of SERVICES Total Cost
Install R-38 high-density insulation and vapor barrier in ceiling of Daniel Meyer Pool building. $ 4,263.00
Item # Quantity Unit Description of MATERIALS Unit Price Total Cost
TOTAL COST
® Per attached quotelproposal
$ 4,263.00
Project Number Account Number _ 411 -12 - 00 - _00 - _704200
Account Number___-__-__- Account Number___-__-__- -
"Expenditure must be charged to the appropriate account numbers for the financials to accurately reflect the actual expenditures.
IT Director in collaboration with department to approve all hardware and software purchases:
IT Director Date Support -Yes/ No
By signing this requisition form, l certify that the City's public contracting requirements have been satisfied.
EmpIov. ee~ d~Gt~iC /it7/~`~ Department Head:
(Equal to or greater than $5,000)
Department Manager/Supervisor: City Administrator:
(Equal to or greater than $25,000)
Funds appropriated for current fiscal year YES / NO
Finance Director- (Equal to orgreaterthan $5,000) Date
Comments:
Form #3 - Requisition