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COI - Denise Duffy & Associates, Inc. - Expires 2021-09-01AcoRO® CERTIFICATE OF LIABILITY INSURANCE �� DATE(MM/DD/YYYY) 11 /1 /2020 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER. IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must have ADDITIONAL INSURED provisions or be endorsed. If 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 (HD) Heffernan Insurance Brokers 1350 Carlback Avenue Walnut Creek CA 94596 CONTACT Elizabeth Lee PHONE FAX (A/c. No Ext): 925-934-8500 (A/C, No): 925-934-8278 E-MAIL ADDRESS: elizabethl@heffins.com INSURER(S) AFFORDING COVERAGE NAIC # INSURER A: Citizens Insurance Company of America 31534 INSURED DENIDUF-02 Denise Duffy & Associates, Inc. 947 Cass Street, Suite 5 Monterey CA 93940 INSURER B : The Hanover American Insurance Company 36064 Company INSURER C : Continental CasualtyCom an 20443 INSURER D : INSURER E : INSURER F : CERTIFICATE NUMBER: • THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. INSR LTR TYPE OF INSURANCE ADDL SUBR INSD WVD POLICY NUMBER /YPOLICY EFF POLICY EXP (MM/DDYYY) (MM/DD/YYYY) LIMITS A X I�, COMMERCIAL GENERAL LIABILITY Y OB3916991209 9/1/2020 9/1/2021 EACH OCCURRENCE $1,000,000 CLAIMS -MADE X OCCUR DAMAGE TO RENTEDPREMISES (Ea occurrence) $ 1,000,000 MED EXP (Any one person) $ 5,000 PERSONAL & ADV INJURY $ 1,000,000 GEN'L AGGREGATE LIMIT APPLIES X 1 JE PER: LOC GENERAL AGGREGATE $ 2,000,000 PRODUCTS - COMP/OP AGG $ 2,000,000 $ A AUTOMOBILE X LIABILITY ANY AUTO OWNED SCHEDULED AUTOS NON -OWNED AUTOS ONLY OB3916991209 9/1/2020 9/1/2021 COMBINED SINGLE LIMIT (Ea accident) $ Included in GL BODILY INJURY (Per person) $ BODILY INJURY (Per accident) $ PROPERTY DAMAGE (Per accident) $ A X I UMBRELLA LIAB EXCESS LIAB X O OCCUR CLAIMS -MADE I OB3916991209 9/1/2020 9/1/2021 EACH OCCURRENCE $3,000,000 AGGREGATE $ 3,000,000 DED ' RETENT ON $ $ B WORKERS COMPENSATION AND EMPLOYERS' LIABILITY ANYPROPRIETOR/PARTNERJEXECUTIVE OFFICER/MEMBER EXCLUDED? (Mandatory in NH) If yes, describe under DESCRIPTION OF OPERATIONS below Y / N N / A WZ39169906 9/1/2020 9/1/2021 X STATUTE 1EERH- E.L. EACH ACCIDENT $ 1,000,000 E.L. DISEASE - EA EMPLOYEE $ 1,000,000 E.L. DISEASE - POLICY LIMIT $ 1,000,000 C Professional Liability EEH276198480 11/5/2020 11/5/2021 PER CLAIM AGGREGATE $2,000,000 $2,000,000 DESCRIPTION OF OPERATIONS I LOCATIONS / VEHICLES (ACORD 101, Additional Remarks Schedule, may be attached if more space is required) Re: Las Animas Medical Building. City of Gilroy, its officers and employees are included as an additional insured with respects to the General Liability policy per the attached endorsement, if required. TE HOLDER City of Gilroy 7351 Rosanna St. Gilroy CA 95020 SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. AUTHORIZED REPRESENTATIVE ACORD 25 (2016/03) ©1988-2015 ACORD CORPORATION. All rights reserved. The ACORD name and logo are registered marks of ACORD Hanover Insurance Group- OB3 9169912 5701768 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. AVENUES BUSINESSOWNERS ARCHITECTS AND ENGINEERS PROGRAM BROADENING ENDORSEMENT This endorsement modifies insurance provided under the following: BUSINESSOWNERS COVERAGE FORM BUSINESSOWNERS LIABILITY SPECIAL BROADENING ENDORSEMENT The following is added to SECTION I - PROPERTY: The limits applicable to the coverages included in this endorsement may either be in addition to or included within the applicable Limit of Insurance. For application of the limits, refer to each coverage within this endorsement. Words or phrases in quotation marks have special meanings. The meaning of words or phrases in quotation marks is explained within the applicable coverage section. The coverages in this endorsement amend the coverage provided under the Businessowners Coverage Form through new coverages and replace coverage grants. These coverages are subject to the provisions applicable to this policy, except where amended within this endorsement. If any of the property covered by this endorsement is also covered under any other provisions of the policy of which this endorsement is made a part of, or if more than one coverage under this endorsement applies, in the event of loss or damage, you may choose only one of these coverages to apply to that loss. The most we will pay in this case is the limit of insurance applying to the coverage you select. Coverages included in this endorsement apply either separately to each described premises or on an occurrence basis. Refer to each coverage within this endorsement for application of coverage. We provide no coverage for Business Income; Extended Business Income; Extra Expense; or Business Income and Extra Expense from Dependent Properties for any of the Coverages included as part of this endorsement unless specifically stated, and then only to the extent provided for within that Scheduled or Blanket Coverage provision. I. COVERAGES Scheduled Coverages Limit Page 1. Accounts Receivable On Premises Accounts Receivable Off Premises $250,000 $250,000 3 2. Backup or Overflow of a Sewer, Drain or Sump $25,000 3 3. Brands and Labels Included 4 4. Business Income Billable Hours Option $25,000 4 5. Business Income and Extra Expense - Dependent Properties $50,000 5 6. Transit Business Income and Extra Expense $50,000 5 7. Business Income from Websites $50,000 5 8. Catastrophe Allowance $10,000 6 9. Civil Authority 24 hour waiting period 6 10. Commercial Tools and Small Equipment - Waterborne and Underground Property Waterborne and Underground Property Included 6 11. Computer Equipment - On Premises Computer Equipment - Off Premises Computer Equipment - Newly Acquired $100,000 $100,000 $100,000 6 12. Computer Equipment Replacement Cost Provision Included 6 391-1445 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 1 of 22 13. Computer and Funds Transfer Fraud $10,000 7 14. Consequential Loss to Stock Included 7 15. Contractor's Equipment - Amended Definition Contractor's Equipment - Rental Reimbursement Included $5,000 7 16. Contract Penalties $25,000 8 17. Covered Property - Amended Business Personal Property Definition Included 8 18. Deductible Provision - Amended Included 8 19. Denial of Access to Premises 30 Days; 72 Hour Waiting Period 8 20. Electronic Vandalism $100,000 8 21. Employee Theft Including ERISA Compliance $100,000 9 22. Expediting Expenses $25,000 9 23. Extended Business Income 90 Days 9 24. Fine Arts (Including Architectural Models) $100,000 9 25. Hired Auto - Physical Damage $50,000 10 26. Identity Theft Expense Reimbursement $15,000 11 27. Interruption of Computer Operations - On Premises Interruption of Computer Operations - Off Premises $500,000 $25,000/$50,000 12 28. Inventory and Loss Appraisal $25,000 12 29. Key Replacement and Lock Repair $5,000 12 30. Lessor's Lease Cancellation $10,000 12 31. Marring and Scratching Included 13 32. Money and Securities - Inside the Premises Money and Securities - Outside the Premises $25,000 $25,000 13 33. Money Orders and Counterfeit Money $25,000 13 34. Newly Acquired or Constructed Property - Business Income and Extra Expense $500,000 13 35. Ordinance or Law - Demolition Cost Coverage Ordinance or Law - Increased Cost of Construction $250,000 $250,000 13 36. Ordinance or Law - Increased Period of Restoration $50,000 14 37. Ordinance or Law - Loss to Undamaged Portion of the Building - Additional Limit Building Limit Plus $250,000 14 38. Ordinance or Law (Tenants Improvement Extension) $25,000 14 39. Outdoor Property $25,000 14 40. Personal Effects $25,000 15 41. Portable Electronic Devices Coverage Worldwide $10,000 15 42. Precious Metal Theft Payment Changes $25,000 15 43. Preservation of Property - Expense $25,000 15 44. Personal Property in Transit Included 16 45. Personal Property Off Premises $100,000 16 46. Personal Property of Others - Replacement Cost Provision Included 16 47. Sales Representative Samples $25,000 16 48. Soft Costs $10,000 16 391-1445 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 2 of 22 T'�e Hanover Insurance Group_ OB3 9169912 5701768 49. Spoilage $5,000 16 50. Telephone Interruption $10,000 17 51. Temporary Relocation of Property $50,000 18 52. Tenant Building Insurance - When Your Lease Requires You to Provide Insurance Included 18 53. Tenant Signs Included 18 54. Underground Water Seepage Included 18 55. Utility Services Direct Damage (Including Overhead Transmission Lines) Business Income (Including Overhead Transmission Lines) $25,000 $25,000 19 56. Valuable Papers and Records Other Than Electronic Data)On Premises Valuable Papers and Records (Other Than Electronic DataOff Premises $100,000 $100,000 19 57. Worldwide Property Off Premises $50,000 19 Section II - Liability Changes Limit Page 1. Additional Insured by Contract, Agreement or Permit - Amended 20 2. Additional Insured by Contract, Agreement or Permit - Primary and Non- contributory 20 3. Damage to Premises Rented to You - Revised Limit $1,000,000 21 4. Newly Acquired or Formed Organizations 180 Days 21 5. Non -Owned Watercraft 75 Feet 21 6. Who Is An Insured - Unnamed Joint Venture 22 II. DEDUCTIBLES Deductibles are subject to the provisions applicable to the Businessowners Coverage Form except as provided below. We will not pay for covered loss or damage in any one occurrence unless the amount of loss or damage exceeds the applicable Deductible amount. We will then pay the amount of loss or damage in excess of the Deductible up to the applicable Limit of Insurance. III. COVERED PROPERTY Scheduled Coverages 1. Accounts Receivable SECTION I - PROPERTY, A. Coverage, 6. Coverage Extensions, f. Accounts Receivable, paragraphs (2) and (3) are replaced by the following: (2) We will pay under this Coverage Extension for loss or damage in any one occurrence at the described premises. The most we will pay is $250,000 for accounts receivable at the described premises, unless a higher Limit of Insurance for accounts receivable is shown in the Additional Property Coverage Schedule. (3) We will pay under this Coverage Extension for loss or damage in any one occurrence not at the described premises. The most we will pay is $250,000 for accounts receivable not at the described premises. 2. Backup or Overflow of a Sewer, Drain or Sump The following is added to SECTION I - PROPERTY, A. Coverage, 5. Additional Coverages: Backup or Overflow of a Sewer, Drain or Sump (1) We will pay for direct physical loss or damage to Covered Property at the described premises, solely caused by or resulting from water or waterborne material carried or moved by water that backs up or overflows or is otherwise discharged from a sewer, drain, sump, sump pump or related equipment. The term drain includes a roof drain and its related fixtures. 391-1445 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 3 of 22 (2) For the purpose of this Additional Coverage only, SECTION I - PROPERTY, B. Exclusions, paragraph g. Water (3) is deleted. (3) The most we will pay under this Additional Coverage for loss or damage to Covered Property at a premises described in the Declarations is $25,000 per occurrence. This Additional Coverage does not increase the Limits of Insurance. (4) Special Sewer Backup Exclusion We will not pay for: (a) Loss or damage from water or other materials that back-up or overflow from any sewer or drain, sump, sump pump or related equipment when it is caused by or results from any "flood", regardless of the proximity of the back-up or overflow to the "flood" condition; or (b) Failure to keep a sump pump or its related equipment in proper working condition; or (c) Failure to perform routine maintenance or repair necessary to keep a sewer or drain free from obstructions. 3. Brands and Labels The following is added to SECTION I - PROPERTY, A. Coverage, 6. Coverage Extensions: Brands and Labels (1) If Covered Property that has a brand or label is damaged by a Covered Cause of Loss and we elect to take all or any part of the damaged property at an agreed or appraised value, you may extend the insurance that applies to your Business Personal Property to: (a) Pay expenses you incur to: (i) Remove the brand or label and then relabel the damaged property to comply with any applicable law; or (ii) Label or stamp the damaged property Salvage, if doing so will not physically damage the property. (b) Cover any reduction in the salvage value of the damaged property as a result of the removal of the brand or label. (2) Payment under this Extension is included within the Limit of Insurance applicable to your Business Personal Property. 4. Business Income Billable Hours Option The following is added to SECTION I - PROPERTY, E. Property Loss Conditions, 5. Loss Payment: Business Income Billable Hours Option (1) At your option you may choose to settle a covered Business Income and Extra Expense loss, as described under the Business Income, Extra Expense and Utility Services Additional Coverages, on a billable hours basis. If you choose this settlement method, the billable hours will be verified through review of your historical financial records or based on an average of your billable hourly rate over the past 12 months. (2) This loss settlement option is only available to you prior to your submission to us of calculations described under SECTION I - PROPERTY, A. Coverage, 5. Additional Coverages f. Business Income. If you choose this option, SECTION I - PROPERTY, A. Coverage, 5. Additional Coverages, f. Business Income, paragraph (c) is replaced by the following: (c) Business Income means the: (i) Income that would have been generated from billable hours normally charged by you to your clients for services performed by you or your employees if no physical loss or damage occurred; (ii) Other income of your business that would have been incurred if no physical loss or damage occurred; (iii) Continuing normal operating expenses incurred, including "payroll expenses". However, if your business is not generating any income because you are primarily in research or development or have not yet brought your product to market, your continuing normal operating expenses, including "payroll expenses" will not be offset by the Net Loss; and (iv) "Rental Value". For manufacturing risks, Net Income includes the net sales value of production. (4) For any occurrence, the two available methods for adjusting and calculating Business Income and Extra Expense loss may not be combined. When the alternative (3) 391-1445 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 4 of 22 billable hours approach described above is selected, the maximum coverage under this loss settlement option is $25,000 on an actual loss sustained basis. 5. Business Income and Extra Expense - Dependent Properties The heading for SECTION I - PROPERTY, A. Coverage, 5. Additional Coverages, m. Business Income from Dependent Properties is replaced by the following: m. Business Income and Extra Expense from Dependent Properties The following is added to Business Income and Extra Expense from Dependent Properties: We will pay the necessary Extra Expense you incur due to direct physical loss of or damage to "dependent property" caused by or resulting from a Covered Cause of Loss. The definition of Extra Expense for this Additional Coverage is replaced by the following: Extra Expense means necessary expenses you incur during the "period of restoration" for the "dependent property" that you would not have incurred if there had been no direct physical loss or damage to the premises of any "dependent property" caused by or resulting from a Covered Cause of Loss: (1) To avoid or minimize the"suspension" of business and to continue "operations"; or (2) To minimize the "suspension" of business if you cannot continue "operations". We will reduce the amount of your Extra Expense loss to the extent you can return "operations" to normal and discontinue such Extra Expense. Paragraph (2) of this Additional Coverage is replaced by the following: (2) The most we will pay under this Additional Coverage is $50,000 per occurrence, regardless of the number of "dependent properties" affected. 6. Transit Business Income and Extra Expense The following is added to SECTION I - PROPERTY, A. Coverage, 5. Additional Coverages: (3) rti� Hanover Insurance Group_ 0B3 9169912 5701768 Transit Business Income and Extra Expense (1) We will pay the actual loss of Business Income you sustain and necessary and reasonable Extra Expense you incur caused by direct physical loss of or direct physical damage to Covered Property while "in transit" caused by or resulting from a Covered Cause of Loss. (2) SECTION I - PROPERTY, B. Exclusions, paragraphs 1.b Earth Movement and 1.g Water do not apply to this Additional Coverage: The most we will pay for loss in any one occurrence under this Additional Coverage is $50,000. (4) The amount payable under this Additional Coverage is additional insurance. 7. Business Income from Websites a. The following is added to SECTION I - PROPERTY, A. Coverage, 5. Additional Coverages: Business Income from Websites (1) You may extend this insurance to apply to a "suspension" of "operations" caused by direct physical loss or damage to property that you depend on for "web site and communications services" from a Covered Cause of Loss. (2) We will not pay for any loss of Business Income you incur during the first 12 hours that immediately follows the time when you first discovered the Covered Cause of Loss. This Waiting Period does not apply to Extra Expense. The most we will pay for the actual loss of Business Income and necessary and reasonable Extra Expense in any one occurrence under this Additional Coverage is $50,000 and only for the 7-day period immediately following the Covered Cause of Loss. (4) Coverage does not apply to Websites unless there is a duplicate or back-up copy of your Web Page stored at a location that is at least 1,000 feet away from the premises of the vendor that provides "web site and communications services". (3) (3) 391-1445 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 5 of 22 (5) "Web Site and Communication Services" means: (a) Internet access, e-mail, web hosting, value added network services and application software services at the premises of others; or (b) Network and router infrastructure services, including cable and wireless, located more than 1,000 feet from the described premises. b. This Additional Coverage is not subject to SECTION I - PROPERTY, C. Limits of Insurance. 8. Catastrophe Allowance The following is added to SECTION I - PROPERTY, A. Coverage, 6. Coverage Extensions: Catastrophe Allowance (1) This Coverage Extension applies when the direct physical loss or damage to Covered Property from a Covered Cause of Loss is the result of an insured event for which Property Claims Service (PCS) has publicly designated a catastrophe number to the event. (2) You may extend the insurance provided under this Coverage Extension if the Limit of Insurance applicable to Building and Business Personal Property, as shown in the Declarations, are insufficient to compensate you for covered loss or damage you incur as a result of the insured catastrophe event. This Coverage Extension may not be applied to the deductible amount of this policy or any other policy. It also may not be used to cover any loss or damage that would not be covered under this policy. (4) The most we will pay under this Extension in any one occurrence is $10,000. The most we will pay under this Extension during each separate 12 month period of this policy is $10,000. 9. Civil Authority SECTION I - PROPERTY, A. Coverage, 5. Additional Coverages, i. Civil Authority, paragraph (2), is replaced by the following: (2) Civil Authority Coverage for Business Income will begin 24 hours after the time of the first action of civil authority that prohibits access to the described premises and will end: (3) (a) Four consecutive weeks after the time of that action; or (b) When your Civil Authority Coverage for Business Income ends; whichever is later. 10. Commercial Tools and Small Equipment SECTION I - PROPERTY, A. Coverage, 5. Additional Coverages, v. Commercial Tools and Small Equipment, paragraph (5)(d) is replaced by the following: (d) Any property while airborne. 11. Computer Equipment SECTION I - PROPERTY, A. Coverage, 5. Additional Coverages, r. Computer Equipment, paragraph (6) is replaced by the following: (6) Regardless of the number of insured locations involved, the most we will pay for loss or damage under this Additional Coverage to property described in paragraphs (1) and (2) above in any one occurrence at insured locations is $100,000. The most we will pay for loss or damage under this Additional Coverage to property described in paragraphs (1) and (2) above in any one occurrence while "in transit" or at a premises other than the described premises is $100,000. The most we will pay for loss or damage under this Additional Coverage to property described in paragraphs (1) and (2) above in any one occurrence for property that you newly acquire is $100,000. With respect to newly acquired property under this Additional Coverage, coverage will end when any of the following occurs: (a) The policy expires; (b) 180 days after you acquire the property listed in (1)(a - d); (c) You report values to us. The most we will pay for Extra Expense is $5,000 or the amount shown in the Additional Property Coverage Schedule in any one occurrence. This Additional Coverage is not subject to SECTION I - PROPERTY, C. Limits of Insurance. 12. Computer Equipment Replacement Cost Provision 391-1445 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 6 of 22 If Computer Equipment covered under SECTION I - PROPERTY , A. Coverage, 5. Additional Coverages, r. Computer Equipment, is covered on a replacement cost basis, the following is added to SECTION I - PROPERTY, C. Limits of Insurance: We will pay the replacement cost value of the computer equipment at the time of loss, but no more than 115% of the Limit of Insurance for Computer Equipment if: (1) The amount of loss covered by this policy exceeds the Limit of Insurance for Computer Equipment; and (2) The actual repair or replacement is completed within one year of the date of loss. 13. Computer and Funds Transfer Fraud SECTION I - PROPERTY, A. Coverage, 5. Additional Coverages, hh. Computer and Funds Transfer Fraud, paragraph (3) is replaced by the following: (3) The most we will pay per occurrence under this Additional Coverage is $10,000 unless a higher Limit of Insurance is shown in the Schedule of Amended Limits of Insurance. 14. Consequential Loss to Stock The following is added to SECTION I - PROPERTY, A. Coverage, 6. Coverage Extensions: Consequential Loss to Stock (1) You may extend the insurance that applies to your Business Personal Property to apply to the reduction in value of the remaining parts of "stock" in process of manufacture that are physically undamaged but are unmarketable as a complete product because of direct physical loss or damage from a Covered Cause of Loss to other parts of covered "stock" in process of manufacture at an insured location. (2) Should it be determined that such "stock" retains only a salvage value, we retain the option of paying the full value of the "stock" as agreed within this policy, and taking the damaged property for salvage purposes. Payment under this Coverage Extension is included within the applicable Limit of Insurance. 15. Contractor's Equipment - Amended Definition Including Rental Reimbursement For purposes of the coverage provided by this endorsement, SECTION I - PROPERTY, A. Coverage, 5. Additional Coverages, the following changes are made: a. For purposes of this provision only, (3) Hanover Insurance Group_ 0B3 9169912 5701768 SECTION I - PROPERTY, A. Coverage, 5. Additional Coverages, v. Commercial Tools and Small Equipment, paragraph (2) is replaced by the following: (2) When caused by or resulting from a Covered Cause of Loss, we will pay for direct physical loss of or damage to commercial tools and small equipment including "contractors' equipment", communication devices and diagnostic equipment usual to your business operations which are: (a) your property (b) the property your care, control or (c) the property "employees". Damage to the property of your "employees" is limited to while on the described premises. b. For purposes of this provision only, the following coverage extension is added to SECTION I -PROPERTY, A. Coverage, 5. Additional Coverages v. Commercial Tools and Small Equipment: Rental Reimbursement (1) of others in custody or of your In the event of a direct physical loss by a covered cause of loss to your "contractors' equipment", we will reimburse you for your expense to rent similar equipment while your equipment is inoperable. (2) The most we will reimburse you for rental expenses is $5,000. 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. (3) (4) We will not reimburse you: (a) For the rental of equipment until after the first 72 hours following direct physical loss to your "contractors' equipment" caused by a covered peril. After the waiting period has passed we will only reimburse you for the rental expenses that you actually incur. 391-1445 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 7 of 22 (b) If you can continue or resume your operations with similar equipment that is available to you at no additional expense to you. (c) For the rental expense of any equipment unless you make every reasonable effort to repair, replace, or rebuild the inoperable equipment after the loss by a covered peril occurs. The deductible amount does not apply to this coverage extension. c. The following definition is added to SECTION I - PROPERTY, G. Property Definitions: 1. "Contractors' equipment" means machinery, equipment, and tools of a mobile nature that you use in your contracting, installation, erection, repair, or moving operations or projects. "Contractors' equipment" also means: a. Self-propelled vehicles designed and used primarily to carry mounted equipment; b. Vehicles designed for highway use that are unlicensed and not operated on public roads; or c. Data that is stored on such equipment. 16. Contract Penalties The following is added to SECTION I - PROPERTY, A. Coverage, 5. Additional Coverages: Contract Penalties (1) We will pay for contract penalties you are required to pay due to your failure to provide your product or service according to contract terms because of direct physical loss or damage by a Covered Cause of Loss to Covered Property. (2) The most we will pay for all penalties in any one occurrence is $25,000. (3) The amount payable under this Additional Coverage is additional insurance. 17. Covered Property - Amended Business Personal Property Definition The following is added to SECTION I - PROPERTY, A. Coverage, paragraph b.: Drafting equipment, drafting tables, mechanical pencils, art pencils, drafting compasses, architectural rulers, and other equipment used in the normal course of business as an architect or engineer. SECTION I - PROPERTY, A. Coverage, 4. Limitations paragraph b. does not apply to property described in paragraph (7) above. For purposes of this provision only, the requirement that Business Personal Property be within 1000 feet of the described premises is deleted. However, Business Personal Property described in Paragraph (7) above must be located within the Coverage Territory. 18. Deductible Provision - Amended SECTION I - PROPERTY, D. Deductibles, paragraph 5.a. is deleted. A $500 deductible will apply to Employee Theft. 19. Denial of Access to Premises The following is added to SECTION I - PROPERTY, A. Coverage, 5. Additional Coverages: Denial of Access to Premises (1) We will pay for the actual loss of Business Income you sustain and necessary Extra Expense you incur when ingress to or egress from the described premises is prevented, due to direct physical loss of or damage to property that is away from but within 2000 feet of the described premises, caused by or resulting from any Covered Cause of Loss covered under this policy. (2) The coverage for Business Income will begin 72 hours after the loss or damage to the premises that causes the denial of access and will apply for a period of up to 30 consecutive days after coverage begins. The coverage for Extra Expense will begin immediately after the loss or damage to the premises that causes the denial of access and will end: (a) 30 consecutive days after coverage begins; or (b) When your Business Income coverage ends; whichever is earlier. (4) The definitions of Business Income and Extra Expense contained in the Business Income Additional Coverage and the Extra Expense Additional Coverage also apply to this Denial of Access to Premises Additional Coverage. 20. Electronic Vandalism SECTION I - Property, A. Coverage, 5. Additional Coverages, dd. Electronic Vandalism, paragraph (3) is replaced by the following: (3) The most we will pay for loss of or damage to computer "hardware" or "software" in any one occurrence (3) 391-1445 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 8 of 22 under this Additional Coverage is $5,000. The most we pay for all covered losses to computer "hardware" or "software" under this Additional Coverage during each separate 12-month period of this policy is $100,000. The most we will pay under this Additional Coverage for all loss or damage sustained in any one policy year, regardless of the number of occurrences of loss or damage or the number of premises, locations or computer systems involved, is $100,000, unless a higher Limit of Insurance is shown in the Declarations. If loss payment on the first occurrence does not exhaust this amount, then the balance is available for subsequent loss or damage sustained in, but not after, that policy year. With respect to an occurrence which begins in one policy year and continues or results in additional loss or damage in a subsequent policy year(s), all loss or damage is deemed to be sustained in the policy year in which the occurrence began. 21. Employee Theft Including ERISA Compliance SECTION I - PROPERTY, A. Coverage, 5. Additional Coverages, p. Employee Theft Including ERISA, paragraph (6), is replaced by the following: (6) The most we will pay for all loss resulting directly from an occurrence is $100,000. Regardless of the number of years this policy remains in force or the number of premiums paid, no Limit of Insurance cumulates from year to year. 22. Expediting Expenses The following is added to SECTION I - PROPERTY, A. Coverage, 5. Additional Coverages: Expediting Expenses (1) When a Covered Cause of Loss occurs to Covered Property, we will pay for the reasonable and necessary additional expenses you incur to: (a) Make temporary repairs; (b) Expedite permanent repair or replacement of damaged property; or (c) Provide training on replacement machines or equipment. (2) The most we will pay for loss under this Additional Coverage in any one occurrence is $25,000. The amount payable under this Additional Coverage is additional insurance. (3) Hanover Insurance Group.. 0133 9169912 5701768 23. Extended Business Income SECTION I - PROPERTY, A. Coverage, 5. Additional Coverages, f. Business Income, (2) Extended Business Income, (a) Extended Business Income - Other Than Rental Value, paragraph (ii) and (b) Extended Business Income -Rental Value, paragraph (ii) are replaced by the following: (a) Extended Business Income - Other Than Rental Value (ii) Ends on the earlier of: 1) The date you could restore your operations, with reasonable speed, to the level which would generate the business income amount that would have existed if no direct physical loss or damage had occurred; or 2) 90 consecutive days after the date determined in (2)(a)(i) above. (b) Extended Business Income - Rental Value (ii) Ends on the earlier of: 1) The date you could restore tenant occupancy, with reasonable speed, to the level which would generate the "Rental Value" that would have existed if no direct physical loss or damage had occurred; or 2) 90 consecutive days after the date determined in (2)(b)(i) above. 24. Fine Arts a. SECTION I - PROPERTY, A. Coverage, 6. Coverage Extensions, x. Fine Arts, paragraph (3), is replaced by the following: (3) The most we will pay for loss under this Additional Coverage is $100,000 per occurrence regardless of the number of locations or buildings involved. b. SECTION I - PROPERTY, G. Property Definitions, 21. "Fine Arts" is replaced by the following: 21. "Fine Arts" means architectural models, paintings, etchings, pictures, tapestries, rare art glass, art glass windows, valuable rugs, statuary, sculptures, "antique" furniture, "antique" jewelry, bric-a-brac, porcelains, 391-1445 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 9 of 22 and similar property of rarity, historical value, or artistic merit. 25. Hired Auto - Physical Damage The following is added to SECTION I - PROPERTY, A. Coverage, 5. Additional Coverages: Hired Auto - Physical Damage Coverage (1) We will pay for loss to an "auto" you or an "employee", at your direction, lease, hire or rent without a driver for a period of 30 days or less for the purpose of conducting customary operations for your business. This does not include any "auto" you lease, hire or rent from any of your "employees" or members of their households. We will pay for loss to a covered "auto" or its equipment caused by: (a) Comprehensive coverage From any cause except: (i) The covered "auto's" collision with another object; or (ii) The covered "auto's" overturn. (b) Collision coverage (i) The covered "auto's" collision with another object; or (ii) The covered "auto's" overturn. (2) For the purpose of this Additional Coverage only, SECTION I -PROPERTY, A. Coverage, 2. Property Not Covered, paragraph a. is replaced by the following: a. Aircraft, automobiles, motortrucks and other vehicles subject to motor vehicle registration and: (1) Any "auto" as described in paragraph (1) above, while used in any professional or organized racing or demolition contest or stunting activity, or while practicing for such contest or activity; (2) Tapes, records, discs or other similar audio, visual or data electronic devices designed for use with audio, visual or data electronic equipment; Any device designed or used to detect speed measuring equipment such as radar or laser detectors and any jamming apparatus intended to elude or disrupt speed measurement equipment; or (3) (3) (4) Any electronic equipment, without regard to whether this equipment is permanently installed, that receives or transmits audio, visual or data signals and that is not designed solely for the reproduction of sound. For the purpose of this Additional Coverage only, SECTION I - PROPERTY, B. Exclusions does not apply with the exception of the following exclusions: (a) 1.d. Nuclear Hazard; (b) 1.f. War and Military Action For the purpose of this Additional Coverage only, the following exclusions are added to SECTION I - PROPERTY, B. Exclusions: 1. We will not pay for loss to a covered "auto" caused by or resulting from someone causing you to voluntarily part with the "auto" by trick or scheme or under false pretenses; or 2. We will not pay for loss caused by or resulting from wear and tear, freezing; mechanical or electrical breakdown; blowouts, punctures or other road damage to tires. (4) For the purpose of this Additional Coverage only, the following is added to SECTION I - PROPERTY, C. Limits of Insurance: Hired Auto Physical Damage Limits of Insurance The most we will pay for loss to any one covered "auto" is the lesser of: a. The actual cash value of the damaged or stolen property as of the time of loss; b. The cost of repairing or replacing the damaged or stolen property with other property of like kind and quality; or c. $50,000. The following is added toSECTIONI - PROPERTY, D. Deductibles, paragraph 5.: Hired Auto - Physical Damage (6) For the purpose of this Additional Coverage only, the following is added to SECTION I - PROPERTY, G. Property Definitions: 1. "Auto" means a land motor vehicle, trailer or semitrailer that is subject to motor vehicle (5) 391-1445 0816 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 10 of 22 registration, or designed for travel on public roads, including any attached machinery or equipment. The amount payable under this Additional Coverage is additional insurance. This coverage is excess to any other valid insurance whether collectible or not. 26. Identity Theft Expense Reimbursement The following is added to SECTION I - PROPERTY, A. Coverage, 5. Additional Coverages: Identity Theft Expense (1) We will pay for "expenses" incurred by an "insured person" as a direct result of any one "Identity Theft" first discovered or learned of by such "insured person" during the policy period. Any act or series of acts committed by one or more persons, or in which such persons are aiding and abetting others against an "insured person", is considered to be one "identity theft" even if a series of acts continues into subsequent policy period(s). (2) With respect to this Additional Coverage: (a) 391-1445 08 16 "Expenses" means: (I) Costs for notarizing affidavits or similar documents attesting to fraud required by financial institutions or similar credit grantors or credit agencies; (ii) Costs of certified mail to law enforcement agencies, credit agencies, financial institutions or similar credit agencies; (iii) Lost income resulting from: 1) Time taken off work to complete fraud affidavits; or 2) Meeting or talking to law enforcement agencies, credit agencies or legal counsel. (iv) Loan application fees for reapplying for a loan or loans when the original application is rejected solely because the lender received incorrect credit information; (v) Reasonable attorney fees to: 1) Defend lawsuits brought against an "insured person" by merchants, financial institutions or their collection agencies; (3) (c) The Hanover Insurance Group_ OB3 9169912 5701768 2) Remove any criminal or civil judgments wrongly entered against an "insured person"; or 3) Challenge the accuracy or completeness of any information in a consumer credit report; (vi) Charges for long distance telephone calls due to "Identity theft" to: 1) Merchants; 2) law enforcement agencies; 3) Financial institutions or other similar credit grantors; or 4) Credit agencies (vii) Reasonable fees for professional financial advice or professional credit advice. The most we will pay for "expenses" under Paragraph (2) (a) is $5,000, subject to a maximum of $200 per day. (b) For purposes of this Additional Coverage, "identity theft" means: The act of knowingly transferring or using, without lawful authority, a means of identification of an "insured person" with the intent to commit, or to aid or abet another to commit, any unlawful activity that constitutes a violation of Federal law or a felony under any applicable state or local law; and "Insured person" means: For sole proprietorships: The individual who is the sole proprietor of the Named Insured shown in the Declarations; (ii) For partnerships: Any individual that is a partner of the Named Insured shown in the Declarations; (iii) For corporations or any other type of organization: The Chief Executive Officer, and any individual who has an ownership interest of at least 20% of the Named Insured, shown in the Declarations. The following additional exclusions apply to this Additional Coverage: We will not pay for: (i) Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 11 of 22 (a) Expenses incurred due to any fraudulent, dishonest or criminal acts by: (i) An "insured person"; (ii) Any person aiding or abetting an "insured person"; or (iii) Any authorized representative of an "insured person"; whether acting alone or in collusion with others; or (b) Loss other than "expenses". Account balances which arise out of fraudulent or unauthorized charges would be one example of loss other than "expenses". (4) Regardless of the amount of the deductible for Covered Property shown in the Declarations, the most we will deduct from any claim for "expenses" under this Additional Coverage for any one "identity theft" is $250. The most we will pay under this Additional Coverage for all "Expenses" arising out of all "Identity Theft" against an "Insured Person" incurred in any one policy year, regardless of the number of "Identity Thefts" involved, is $15,000 unless a higher Limit of Insurance is shown in the Declarations. (6) In order for coverage to be provided under this Additional coverage, you must send to us, within 60 days after our request, receipts, bills or other records that support your claim for "expenses" under "identity theft" coverage. 27. Interruption of Computer Operations SECTION I - PROPERTY, A. Coverage, 5. Additional Coverages, ee. Interruption of Computer Operations, paragraph (3) is replaced by the following: (5) (3) The most we will pay under this Additional Coverage - Interruption of Computer Operations for all loss sustained and expense incurred in any one policy year, regardless of the number of interruptions or the number of premises, locations or computer systems involved is: (a) $500,000 unless a higher Limit of Insurance is shown in the Declarations. If loss payment relating to the first interruption does not exhaust this amount, then the balance is available for loss or expense sustained or incurred as a result of subsequent interruptions in that policy year. A balance remaining at the end of a policy year does not increase the amount of insurance in the next policy year. With respect to any interruption which begins in one policy year and continues or results in additional loss or expense in a subsequent policy year(s), all loss and expense is deemed to be sustained or incurred in the policy year in which the interruption began. (b) $25,000 in any one occurrence for interruptions covered under paragraphs (1) and (2) above for loss arising out of a Covered Cause of Loss occurring away from the described premises. This per occurrence limit applies regardless of the number of premises involved. (c) $50,000 for all losses arising out of interruptions covered under paragraphs (1) and (2) that arise out of a Covered Cause of Loss occurring away from the described premises during each separate 12 month period of this policy. 28. Inventory and Loss Appraisal SECTION I - PROPERTY, A. Coverage, 6. Coverage Extensions, j. Inventory and Loss Appraisal, paragraph (2), is replaced by the following: (2) Regardless of the number of premises involved, the most we will pay under this Extension is $25,000. 29. Key Replacement and Lock Repair SECTION I - PROPERTY, A. Coverage, 6. Coverage Extensions, g. Key Replacement and Lock Repair, paragraph (2), is replaced by the following: (2) The most we will pay under this Extension is $5,000. The Deductible does not apply to this Extension. 30. Lessor's Lease Cancellation The following is added to SECTION I - PROPERTY, A. Coverage, 5. Additional Coverages: Lessor's Lease Cancellation (1) We will pay the actual loss of business income you sustain due to the cancellation of a lease by your tenants in a Covered Building due to untenantability that is caused by direct physical loss or damage to that building from a Covered Cause of Loss. 391-1445 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 12 of 22 This Additional Coverage only applies if at the time of loss the building was occupied and business was being conducted by the tenant cancelling the lease or their sub -lessee. (2) We will pay for loss of business income that you sustain after tenantability is restored and until the earlier of: (a) The date you lease the premises to another tenant; or (b) 12 months immediately following the "period of restoration". Regardless of the number of tenants cancelling a lease at the described premises, the most we will pay under this Additional Coverage is $10,000 per occurrence (4) The amount payable under this Additional Coverage is additional insurance. Special Lease Cancellation Exclusions We will not pay for: (a) Lease cancelled after the "period of restoration"; (b) Lease cancelled, suspended or allowed to lapse by you; (c) Return of prepaid rent or security and other deposits made by tenants; or (d) Lease cancelled at the normal expiration date. 31. Marring and Scratching The following is added to SECTION I - PROPERTY, A. Coverage, 6. Coverage Extensions: Marring and Scratching (3) (5) (3) (1) You may extend the insurance that applies to Business Personal Property to apply to damage caused directly by sudden and accidental marring and scratching of: (a) Your "stock"; (b) Your printing plates; or (c) Property of others that is in your care, custody or control. (2) This Coverage Extension does not apply to: (a) Property at other than the described premises; or (b) Personal Property in transit. Payment under this Coverage is included within Limit of applicable to your Business Property. Extension Insurance Personal In or on the described premises; or (ii) Within a bank or savings institution in the coverage territory; and (b) $25,000 or the amount shown in the Additional Property Coverage Schedule Outside the Premises for "money" and "securities" while at any other location listed in (1) above and while in the coverage territory. 33. Money Orders and Counterfeit Money SECTION I - PROPERTY, A. Coverage, 5. Additional Coverages, j. Money Orders and Counterfeit Money, paragraph (3), is replaced by the following: (3) The most we will pay for any loss under this Additional Coverage is $25,000. 34. Newly Acquired or Constructed Property - Business Income and Extra Expense SECTION I - PROPERTY, A. Coverage, 6. Coverage Extensions, a. Newly Acquired or Constructed Property, paragraph (3) is replaced by the following: Hanover Insurance Group.. OB3 9169912 5701768 32. Money and Securities SECTION I - PROPERTY, A. Coverage, 5. Additional Coverages, s. Money and Securities, paragraph (5) is replaced by the following: (5) The most we will pay for loss in any one occurrence is: (a) $25,000 or the amount shown in the Additional Property Coverage Schedule Inside the Premises for "money" and "securities" while: (i) Business Income and Extra Expense You may extend the insurance that applies to Business Income and Extra Expense to apply to property at any location you acquire. The most we will pay for loss or damage under this Extension is $500,000 at each premises. 35. Ordinance or Law - Demolition Cost and Increased Cost of Construction SECTION I - PROPERTY, A. Coverage, 5. Additional Coverages, I. Ordinance or Law, (5) Loss Payment, paragraph (d) is replaced by the following: (d) The most we will pay for the total of all covered losses for Demolition Cost and Increased Cost of Construction for each building described in the Declarations is $250,000 or the amount shown in the (3) 391-1445 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 13 of 22 Additional Property Schedule. If a damaged building(s) is covered under a Blanket Limit of Insurance and the Blanket Limit of Insurance applies to more than one building or item of property, then the most we will under this Additional Coverage, for each building, is $250,000, or the amount shown in the Additional Property Coverage Schedule. 36. Ordinance or Law - Increased Period of Restoration a. The following is added to SECTION I - PROPERTY, A. Coverage, 5. Additional Coverages, I. Ordinance or Law, paragraph (4) Coverage: If a Covered Cause of Loss occurs to property at the premises described in the Declarations, coverage is extended to include the amount of actual and necessary loss you sustain during the increased period of "suspension" of "operations" caused by or resulting from the enforcement of any ordinance or law that: (a) Regulates the construction or repair of any property; (b) Requires the tearing down of parts of any property not damaged by a Covered Cause of Loss; and (c) Is in force at the time of loss. However, coverage is not extended under this endorsement to include loss caused by or resulting from the enforcement of any ordinance or law which requires: (d) The demolition, repair, replacement, reconstruction, remodeling or remediation of property due to contamination by "pollutants" or due to the presence, growth, proliferation, spread or any activity of "fungi",wet or dry rot or bacteria; or Any insured or others to test for, monitor, clean up, remove, contain, treat, detoxify or neutralize, or in any way respond to, or assess the effects of "pollutants", "fungi", wet or dry rot or bacteria. b. The following is added to SECTION I - PROPERTY, A. Coverage, 5. Additional Coverages, I. Ordinance or Law, (5) Loss Payment, paragraph (c): The most we will pay for loss under Increased Period of Restoration in any one occurrence is $50,000 for each described building shown in the (e) Declarations or the amount shown in the Additional Property Coverage Schedule. If a damaged building(s) is covered on a blanket Limit of Insurance which applies to more than one building or item of property, then the most we will pay for Increased Period of Restoration for each described building in any one occurrence is $50,000. 37. Ordinance or Law - Loss to Undamaged Portion of the Building The following is added to SECTION I - PROPERTY, A. Coverage, 5. Additional Coverages, I. Ordinance or Law, (5) Loss Payment, paragraph (b)(i): The replacement cost of the damaged building plus $250,000 for the undamaged portion of the building. 38. Ordinance or Law (Tenant's Improvement Extension) a. The following is added to SECTION I - PROPERTY, A. Coverage, 5. Additional Coverages, I. Ordinance or Law, paragraph (4) Coverage: Coverage provided under paragraphs (a), (b) and (c) above applies to tenant's improvements and betterments but only if a Limit of Insurance is shown in the Declarations for Business Personal Property. Business Personal Property must be insured on a replacement cost basis. This extension is provisional and excess to any other valid insurance for tenant's improvements and betterments whether collectible or not. b. The following is added to SECTION I - PROPERTY, A. Coverage, 5. Additional Coverages, I. Ordinance or Law, (5) Loss Payment, paragraph (c): Regardless of the number of locations insured or buildings involved, the most we will pay for any loss to tenant's improvements and betterments under this Additional Coverage in any one occurrence is $25,000. 39. Outdoor Property SECTION I - PROPERTY, A. Coverage, 6. Coverage Extensions, c. Outdoor Property, paragraph (3) is replaced by the following: (3) Regardless of the number of described premises involved, the most we will pay for loss or damage under this Extension, including debris removal expense, is $25,000, but not more than $1,000 for any one tree, shrub or plant. 391-1445 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 14 of 22 We will pay for loss or damage caused by or resulting from a Covered Cause of Loss to portable electronic devices while anywhere in the world, including while "in transit". (2) For the purpose of this Additional Coverage, the following is added to SECTION I - PROPERTY, G. Property Definitions: Portable electronic devices includes laptops, tablets, e-readers, smartphones or other lightweight, hand-held or wearable devices capable of storing, retrieving and processing data. This coverage is provided when the property is owned by you or owned by others when in your or your "employees"' care, custody or control, subject to SECTION I - PROPERTY, E. Property Loss Conditions, 5. Loss Payment, paragraph d.(3)(b). (4) We will not pay for loss or damage to portable electronic devices when caused by, resulting from, or arising out of "theft" or unexplained loss when the property is checked baggage with a carrier for transit. The provisions for a Business Income loss will be governed by the terms of SECTION I - PROPERTY, A. Coverage, 5. Additional Coverages f. Business Income except: (a) There is no requirement that a loss occur within 1,000 feet or at the described premises as stated in paragraph (1)(a); and (b) The following are not included under this Additional Coverage: (i) Continuing normal operating expenses incurred, including "payroll expense"; 40. Personal Effects SECTION I - PROPERTY, A. Coverage, 6. Coverage Extensions, d. Personal Effects, paragraph (3) is replaced by the following: (3) The most we will pay for loss or damage under this Extension is $25,000 at each described premises. 41. Portable Electronic Devices Coverage Worldwide The following is added to SECTION I - PROPERTY, A. Coverage, 5. Additional Coverages: Portable Electronic Devices Coverage Worldwide (1) (3) (5) The Hanover Insurance Croup_ OB3 9169912 5701768 (ii) Extended Business Income. (6) The provisions for Extra Expense loss will be governed by the terms of SECTION I - PROPERTY, A. Coverage, 5. Additional Coverages, g. Extra Expense except: (a) There is no requirement that a loss occur within 1,000 feet or at the described premises as stated in paragraph g.(1) and g.(2). Limitations, item b. does not apply to this Additional Coverage. SECTION I - PROPERTY, B. Exclusions, 5. Business Income and Extra Expense Exclusions, paragraph (4) does not apply to this Additional Coverage. Regardless of the number of lost or damaged portable electronic devices, the most we will pay per occurrence including actual loss of Business Income you sustain and necessary Extra Expense you incur is $10,000. (10)The amount payable under this Additional Coverage is additional insurance. 42. Precious Metal Theft Payment Changes Section I - Property, A. Coverage, 4. Limitations, paragraph c. is replaced by the following: c. For loss or damage by "theft", the following types of property are covered only up to the limits shown: (1) $10,000 for furs, fur garments and garments trimmed with fur. (2) $10,000 for jewelry, watches, watch movements, jewels, pearls, precious and semi-precious stones. This limit does not apply to jewelry and watches worth $250 or less per item. $25,000 for bullion, gold, silver, platinum and other precious alloys or metals. 43. Preservation of Property - Expense The following is added to SECTION I - PROPERTY, A. Coverage, 5. Additional Coverages: Preservation of Property - Expense (1) If it is necessary to move Covered Property from the described premises to preserve it from loss or damage by a Covered Cause of Loss, we will pay your expenses to move or store the Covered Property. (7) (6) (9) (3) 391-1445 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 15 of 22 (2) This coverage applies for 90 days after the property is first moved, but does not extend past the date on which this policy expires. The most we will pay under this Additional Coverage is $25,000. This Additional Coverage is an additional amount of insurance. 44. Personal Property in Transit SECTION I - PROPERTY, A. Coverage, 6. Coverage Extensions, i. Personal Property in Transit, paragraph (5) is replaced by the following: (5) Payment under this Coverage Extension is included within the Limit of Insurance applicable to your Business Personal Property 45. Personal Property Off Premises SECTION I - PROPERTY, A. Coverage, 6. Coverage Extensions, b. Personal Property Off Premises, paragraph (2) is replaced by the following: b. Personal Property Off Premises (2) The most we will pay for loss or damage under this Coverage Extension is $100,000. 46. Personal Property of Others - Replacement Cost Provision SECTION I - PROPERTY, E. Property Loss Conditions, 5. Loss Payment, paragraph d.(3)(b) is deleted. 47. Sales Representative Samples SECTION I - PROPERTY, 5. Additional Coverages, y. Sales Representative Samples, paragraph (3) is replaced by the following: (3) The most we will pay for any loss or damage under this Additional Coverage is $25,000. 48. Soft Costs The following is added to SECTION I - PROPERTY, A. Coverage, 6 Extensions: Soft Costs (3) (1) We will pay the actual "soft cost expenses" that arise out of a delay in the construction, erection or fabrication of a Covered Building that is listed in SECTION I - PROPERTY, A. Coverage, 1. Covered Property, paragraph a.(6) resulting from direct physical loss or damage to that Covered Building from a Covered Cause of Loss. (2) We will only pay the necessary "soft cost expenses" that are over and above those costs that would have been incurred had there been no delay. (3) The most we will pay under this Extension in any one occurrence is $10,000. (4) "Soft cost expenses" means additional: (a) Realty taxes and other assessments that you incur for the period of time that construction has been extended beyond the projected completion date; (b) Interest on money borrowed to finance construction, remodeling, renovation or repair; and (c) Advertising, public relations and promotional expenses. 49. Spoilage The following is added to SECTION I - PROPERTY, A. Coverage, 5. Additional Coverages: Spoilage The following provisions (a. through g. inclusive) apply to the insurance provided by this Additional Coverage: a. For the purpose of this Additional Coverage, the following is added to SECTION I -PROPERTY, A. Coverage, 1. Covered Property: Covered Property means "perishable goods" at the insured locations, if the "perishable goods" are: a. Owned by you and used in your business; or b. Owned by others and in your care, custody or control except as otherwise provided in SECTION I - PROPERTY, E. Property Loss Conditions, 5. Loss Payment, paragraph d.(3)(b). b. The following is added to SECTION I - PROPERTY, A. Coverage, 2. Property Not Covered: Property located: (1) On the exterior of buildings; (2) In the open; or (3) In vehicles. c. SECTION I -PROPERTY, A. Coverage, 3. Covered Causes Of Loss is replaced by the following: 3. Covered Causes of Loss Subject to the exclusions described in item e. of this 391-1445 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 16 of 22 Additional Coverage, Covered Causes of Loss means the following: a. Breakdown or Contamination, meaning: (1) Change in temperature or humidity resulting from mechanical breakdown or mechanical failure of refrigerating, cooling or humidity control apparatus or equipment. Coverage applies only while such apparatus or equipment is at the described premises shown in the Schedule; or (2) Contamination by a refrigerant. Coverage applies only while the refrigerating apparatus or equipment is at the described premises. Mechanical breakdown and mechanical failure do not mean power interruption, regardless of how or where the interruption is caused and whether or not the interruption is complete or partial. b. Power Outage, meaning change in temperature or humidity resulting from complete or partial interruption of electrical power, either on or off the described premises, due to conditions beyond your control. d. SECTION I - PROPERTY, A. Coverage, 6. Coverage Extensions does not apply. e. SECTION I - PROPERTY, B. Exclusions paragraph 1., does not apply to this Coverage Extension except for: (1) b., Earth Movement; (2) c., Governmental Action; (3) d., Nuclear Hazard; (4) (5) (6) f., War and Military Action; and g., Water. For the purposes of this additional coverage, the following exclusions are added to SECTION I - PROPERTY, B. Exclusions, paragraph 2: We will not pay for loss or damage caused by or resulting from: a. The disconnection of any refrigerating, cooling or humidity control system from the source of power. me Hanover Insurance Group_ OB3 9169912 5701768 b. The deactivation of electrical power caused by the manipulation of any switch or other device used to control the flow of electrical power or current. c. The inability of an electrical utility company or other power source to provide sufficient power due to: (1) Lack of fuel; or (2) Governmental order. d. The inability of a power source at the described premises to provide sufficient power due to lack of generating capacity to meet demand, e. Breaking of any glass that is a permanent part of any refrigerating, cooling or humidity control unit. f. Conditions For the purpose of this Additional Coverage, SECTION I - PROPERTY, E. Property Loss Conditions, 5. Loss Payment, paragraph d. is replaced by the following: d. We will determine the value of Covered Property as follows: (1) For "perishable goods" you have sold but not delivered, at the selling price less discounts and expenses you otherwise would have had; (2) For other "perishable goods", at actual cash value. Regardless of the number of insured locations involved, the most we will pay under this Additional Coverage for loss or damage in any one occurrence is $5,000. This Additional Coverage is not subject to SECTION I - PROPERTY, C. Limits of Insurance. 50. Telephone Interruption The following is added to SECTION I - PROPERTY, A. Coverage, 6. Coverage Extensions: Telephone Interruption (1) Business Income coverage is extended to apply to loss caused by a peril not otherwise excluded under this policy due to damage to or destruction of facilities furnishing telephone or other g• 391-1445 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 17 of 22 communication services, including off premises transmission lines or cables, to your described premises but only when the interruption exceeds four consecutive hours of normal business operations. (2) The most we will pay under this Coverage Extension is $10,000 per occurrence. (3) This coverage does not apply to any reduction in income after telephone or other communication services have been restored to such premises. 51. Temporary Relocation of Property The following is added to SECTION I - PROPERTY, A. Coverage, 5. Additional Coverages: Temporary Relocation of Property (1) We will pay for loss of or damage to Covered Property from a Covered Cause of Loss while it is away from the described premises, if it is being stored temporarily at a location you do not own, lease or operate while the described premises is being renovated or remodeled. (2) This coverage applies for 90 days after the property is first moved, but does not extend past the date on which this policy expires. The most we will Day under this Additional Coverage is 550,000. (4) The amount payable under this Additional Coverage is additional insurance. 52. Tenant Building Insurance - When Lease Requires You Provide Insurance SECTION I - PROPERTY, A. Coverage, 5. Additional Coverages, ii. Tenant Building Insurance - When Your Lease Requires You to Provide Insurance is replaced by the following: ii. Tenant Building Insurance - When Your Lease Requires You to Provide Insurance (1) This Additional Coverage is available only when the Named Insured is a tenant and a Limit of Insurance is shown in the Declarations Page for Business Personal Property. (2) We will pay for direct physical loss or damage to a building on the described premises owned by your landlord and in your care, custody or control for which you have a written contractual responsibility to insure. The loss or damage must be the result of or caused by a Covered Cause of Loss. (3) (3) Payment under this Additional Coverage is included within the Limit of Insurance applicable to your Business Personal Property. (4) Payment for loss under this Additional Coverage does not increase the Business Personal Property Limit of Insurance. 53. Tenant Signs SECTION I - PROPERTY, A. Coverage, 5. Additional Coverages, t. Tenant Signs, paragraph (4) is replaced by the following: (4) The most we will pay for loss or damage in any one occurrence is the Limit of Insurance for Business Personal Property shown in the Declarations. 54. Underground Water Seepage The following is added to SECTION I - PROPERTY, A. Coverage, 5. Additional Coverages: Underground Water Seepage (1) We will pay for direct physical loss or damage to Covered Property at the described premises caused by or resulting from water under the ground surface pressing on, or flowing or seeping through: (a) Foundations, walls, floor or paved surfaces; (b) Basements, whether paved or not; or (c) Doors, windows or other openings in any building or other structure. THIS IS NOT FLOOD INSURANCE OR PROTECTION FROM AN INUNDATION OF SURFACE WATER, HOWEVER CAUSED. This coverage is intended to provide insurance for damage by subterranean water when such event is a localized incident - not part of a general, widespread "flood" water event. We will not pay for loss or damage to property when the subterranean water causing the Underground Water Seepage is itself caused by any "flood" or general flooding conditions - including but not limited to those enumerated under SECTION I - PROPERTY, B. Exclusions, paragraph 1.g. Water. (2) SECTION I - PROPERTY, B. Exclusions, paragraphs g. Water (4) is deleted. 391-1445 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 18 of 22 Payment under this Additional Coverage is included within the applicable Limit of Insurance for Covered Property at a premises described in the Declarations. This Additional Coverage does not increase the Limits of Insurance. (4) We will not pay for loss or damage in any one occurrence until the amount of loss or damage exceeds $1,000. This deductible is to apply separately to: (3) (5) Each building, including personal property therein; (b) Personal property in each building if no coverage is provided on the containing building; and (c) Personal property in the open. The aggregate amount of this deductible in any one occurrence shall not exceed $5,000. We will then pay the amount of loss or damage in excess of the deductible up to the applicable Limit of Insurance. Special Underground Water Seepage Exclusions (a) The Exclusions and Limitations sections of SECTION I - PROPERTY apply to this Additional Coverage except as provided under paragraph (b) below. (b) To the extent that a part of SECTION I - PROPERTY, B. Exclusions, paragraph 1.g. Water might conflict with this Additional Coverage, that part of the Water Exclusion does not apply. (c) This Additional Coverage does not apply to loss or damage resulting from your failure to: (i) Keep a sump pump or its related equipment in proper working condition; or (ii) Perform the routine maintenance or repair necessary to keep a sewer or drain free from obstructions. 55. Utility Services (Including Overhead Transmission Lines) a. SECTION I - PROPERTY, A. Coverage, 5. Additional Coverages, bb. Utility Services, paragraphs (1) and (2) are replaced by the following: (1) We will pay for loss of or damage to Covered Property caused by an interruption in service to the described (a) T;e Hanover Insurance Group_ OB3 9169912 5701768 premises. The interruption must result from direct physical loss or damage by a Covered Cause of Loss to property not on the described premises that provides the services shown in paragraph (3) below. The most we will pay for loss in any one occurrence under this Additional Coverage is $25,000 at each described premises or the Limit of Insurance shown in the Additional Property Coverage Schedule. (2) We will pay for the actual loss of Business Income you sustain and necessary Extra Expense you incur caused by the interruption of service at the described premises. The interruption must result from direct physical loss or damage by a Covered Cause of Loss to property not on the described premises that provides the services shown in paragraph (3) below. We will only pay for loss you sustain after the first 24 hours following the direct physical loss or damage to the property described above. The most we will pay for loss in any one occurrence under this Additional Coverage is $25,000 at each described premises or the Limit of Insurance shown in the Additional Property Coverage Schedule. b. SECTION I - PROPERTY, A. Coverage, 5. Additional Coverages, bb. Utility Services, paragraph (4) is deleted. 56. Valuable Papers and Records (Other Than Electronic Data) SECTION I - PROPERTY, A. Coverage, 6. Coverage Extensions, e. Valuable Papers and Records (Other Than Electronic Data), paragraphs (2) and (3) are replaced by the following: (2) The most we will pay under this Coverage Extension for loss or damage to "valuable papers and records" in any one occurrence at the described premises is $100,000. (3) The most we will pay under this Coverage Extension for loss or damage to "valuable papers and records" in any one occurrence not at the described premises is $100,000. 57. Worldwide Property Off Premises 391-1445 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 19 of 22 The following is added to SECTION I - PROPERTY, A. Coverage, 6. Coverage Extensions: Worldwide Property Off -Premises (1) You may extend the insurance that applies to your Business Personal Property and Personal Property of Others to apply to that property while it is temporarily outside the coverage territory if it is: (a) Temporarily at a location you do not own, lease or operate; (b) Temporarily on display or exhibit at any fair, trade show or exhibition; (c) Samples of your "stock" in trade in the custody of your sales representatives; or (d) While "in transit" between the described premises and a location described in (a), (b) or (c) above. (2) The most we will pay for loss or damage under this Extension is $50,000. (3) This Extension provides an additional amount of insurance. SECTION II - LIABILITY Paragraphs 2. through 7. amend coverage provided under SECTION II - LIABILITY. 1. Additional Insured by Contract, Agreement or Permit -Amended For purposes of the coverage provided by this endorsement, Coverage 1. Additional Insured by Contract, Agreement or Permit, paragraph c. (5) of the Businessowners Liability Special Broadening Endorsement is replaced by the following: This provision does not apply to: (5) All professional liability as an architect or engineer arising out of any construction agreement or activities under which any insured or anyone acting on any insured's behalf provides or provided service, advice, expertise or work. Construction includes, but is not limited to, the plan, conception, design, build, construct, assembly, development, safety, erection, formation, reconstruct, rehabilitation, repair, or any improvement made to real property. Construction also includes the hiring, supervision or management of any of these activities. However, this exclusion does not apply to liability arising out of an insured's presence at a jobsite that was not caused by professional activities listed in the above paragraph. 391-1445 08 16 This exclusion applies even if the claims against any insured allege negligence or other wrongdoing in the supervision, hiring, employment, training or monitoring of others by that insured, if the "occurrence" which caused the"bodily injury" or"property damage" or the offense which caused the "personal and advertising injury" involved professional liability as an architect or engineer arising out of any construction agreement or activities under which any insured or anyone acting on any insured's behalf provides or provided service, advice, expertise or work. 2. Additional Insured Non-contributory a. The following is added to SECTION III - COMMON POLICY CONDITIONS, H. Other insurance: Additional Insured - Primary and Non -Contributory If you agree in a written contract, written agreement or permit that the insurance provided to any person or organization included as an Additional Insured under SECTION II - LIABILITY, C. Who is an Insured, is primary and non-contributory, the following applies: If other valid and collectible insurance is available to the Additional Insured for a loss covered under SECTION II - LIABILITY of this Coverage Part, our obligations are limited as follows: (1) Primary Insurance This insurance is primary to other insurance that is available to the Additional Insured which covers the Additional Insured as a Named Insured. We will not seek contribution from any other insurance available to the Additional Insured except: (a) For the sole negligence of the Additional Insured; (b) When the Additional Insured is an Additional Insured under another primary liability policy; or (c) When b. below applies. If this insurance is primary, our obligations are not affected unless any of the other insurance is also primary. Then, we will share with all that other insurance by the method described in c. below. (2) Excess Insurance - Primary and Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 20 of 22 (a) This insurance is excess over any of the other insurance, whether primary, excess, contingent or on any other basis: (i) That is Fire, Extended Coverage, Builder's Risk, Installation Risk or similar coverage for "your work"; (ii) That is Fire insurance for premises rented to the Additional Insured or temporarily occupied by the Additional Insured with permission of the owner; (iii) That is insurance purchased by the Additional Insured to cover the Additional Insured's liability as a tenant for "property damage" to premises rented to the Additional Insured or temporarily occupied by the Additional with permission of the owner; or (iv) If the loss arises out of the maintenance or use of aircraft, "autos" or watercraft to the extent not subject to Exclusion g. of SECTION II - LIABILITY. B. Exclusions, 1. Applicable to Business Liability Coverage. (v) That is insurance available to you for your participation in any past or present "unnamed joint venture". (vi) That is any insurance you may have that provides coverage for your professional services. (b) When this insurance is excess, we will have no duty to defend the insured against any "suit" if any other insurer has a duty to defend the insured against that "suit". If no other insurer defends, we will undertake to do so, but we will be entitled to the insured's rights against all those other insurers. (c) When this insurance is excess over other Insurance, we will pay only our share of the amount of the loss, if any, that exceeds the sum of: (i) The total amount that all such other insurance would pay for the loss in the absence of this insurance; and (ii) The total of all deductible and self -insured amounts under all that other insurance. We will share the remaining loss, if any, with any other insurance that is not described in this Excess Insurance provision and was not bought specifically to apply in 391-1445 08 16 (3) The Hanover Insurance Group.. OB3 9169912 5701768 excess of the Limits of Insurance shown in the Declarations of this Coverage Part. Method Of Sharing If all of the other insurance permits contribution by equal shares, we will follow this method also. Under this approach, each insurer contributes equal amounts until it has paid its applicable limit of insurance or none of the loss remains, whichever comes first. If any of the other insurance does not permit contribution by equal shares, we will contribute by limits. Under this method, each insurer's share is based on the ratio of its applicable limit of insurance to the total applicable limits of insurance of all insurers. b. For the purposes of coverage provided under this endorsement, the following definition is added to SECTION II - LIABILITY, F. Liability and Medical Expense Definitions: 1. "Unnamed joint venture" means any joint venture in which you are a member or partner where: a. Each and every one of your co -ventures in that joint venture is a hair salon. b. That joint venture is not. 3. Damage to Premises Rented To You - Revised Limit SECTION II - LIABILITY, D. Liability And Medical Expenses Limits of Insurance, paragraph 4. is replaced by the following: 4. The most we will pay under Business Liability Coverage for damages because of "property damage" to any one premises, while rented to you or while temporarily occupied by you with permission of the owner will be the greater of: a. $1,000,000; or b. The Limit of Insurance for Damage to Premises Rented To You shown in the Declarations. 4. Newly Acquired or Formed Organizations SECTION II - LIABILITY, C. Who is An Insured, paragraph 3. subparagraph a. is replaced by the following: a. Coverage under this provision is afforded only until the 1801, day after you acquire or form the organization or the end of the policy period, whichever is earlier. 5. Nonowned Watercraft Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 21 of 22 SECTION II - LIABILITY, B. Exclusions, 1. Applicable to Business Liability Coverage, g. Aircraft, Auto or Watercraft, (2) Aircraft (Other Than Unmanned Aircraft), Subparagraph (b) is replaced by the following: (b) A watercraft you do not own that is: (i) Less than 75 feet long; and (ii) Not being used to carry persons or property for a charge. 6. Who Is An Insured - Unnamed Joint Venture a. For purposes of the coverage provided by this endorsement, the final paragraph of SECTION II - LIABILITY, C. Who Is An Insured is replaced by the following: Unnamed Joint Venture No person or organization is an insured with respect to the conduct of any current or past partnership, joint venture or limited liability company that is not shown as a Named Insured in the Declarations. However, this does not apply to you, for your participation in any past or present "unnamed joint venture", or if that person or organization is otherwise an additional insured under Additional Insureds - Unnamed Joint Venture below. b. For purposes of the coverage provided by this endorsement, the following is added to 391-1445 08 16 SECTION II - LIABILITY, C. Who is an Insured: Additional Insureds - Unnamed Joint Venture: You, as an insured for your participation in any past or present "unnamed joint venture". However, you are not an insured if the "unnamed joint venture" has: (1) Direct employees; or (2) Owns, rents, or leases any real or personal property. No other member or partner, or their spouses, of any past or present "unnamed joint venture" is an insured. c. For purposes of the coverage provided by this endorsement, the following definition is added to SECTION II - LIABILITY, F. Liability And Medical Expenses Definitions: 1. "Unnamed joint venture" means any joint venture in which you are a member or partner where: a. Each and every one of your co -ventures in that joint venture is an architectural, engineering or surveying firm; and b. That joint venture is not named in the Declarations. ALL OTHER TERMS, CONDITIONS, AND EXCLUSIONS REMAIN UNCHANGED. Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 22 of 22