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HomeMy WebLinkAboutGaravaglia Architecture - Insurance Certificate (2018)Page 1 of 1 ACORL® CERTIFICATE OF LIABILITY INSURANCE �i DATE(MM/DD/YY8 01/19/2018 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 Willis of Illinois, Inc. c/o 26 Century Blvd P.O. Box 305191 CONTACT NAME: PHONE 1- 877 - 945 -7378 FAX 1- 888 - 467 -2378 A/C No Ext : A/C No): E -MAIL certificates@willis.com ADDRESS: INSURERS AFFORDING COVERAGE NAIC# Nashville, TN 372305191 USA INSURER A: Citizens Insurance Company of America 31534 INSURED INSURER B: The Hanover American Insurance Company 36064 Garavaglia Architecture Inc 582 Market St, Ste 1800 INSURER C: Liberty Insurance Underwriters Inc 19917 INSURER D: San Francisco, CA 94104 USA INSURER E: DAMAGE TO RENTED PREMISES Ea occurrence INSURER F: MED EXP (Any one person) COVERAGES CERTIFICATE NUMBER: W5128125 REVISION NUMBER: THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. INSR LTR TYPE OF INSURANCE ADDL SUBR POLICY NUMBER POLICY EFF MM/DD/YYYY POLICY EXP MM /DD/YYY LIMITS X COMMERCIAL GENERAL LIABILITY EACH OCCURRENCE $ 1,000,000 CLAIMS -MADE X OCCUR DAMAGE TO RENTED PREMISES Ea occurrence $ 300, 000 MED EXP (Any one person) $ 10,000 A Y Y OBCD353190 09/30/2017 09/30/2018 PERSONAL 8 ADV INJURY $ 1,000,000 GEN'L AGGREGATE LIMIT APPLIES PER: GENERAL AGGREGATE $ 2,000,000 POLICY ECT 7 LOC PRODUCTS - COMP /OP AGG $ 2,000,000 $ OTHER: AUTOMOBILE LIABILITY COMBINED SINGLE LIMIT Ea accident $ 1,000,000 BODILY INJURY (Per person) $ ANY AUTO A OWNED SCHEDULED AUTOS ONLY AUTOS OBCD353190 09/30/2017 09/30/2018 BODILY INJURY (Per accident) $ HIRED NON -OWNED AUTOS ONLY X AUTOS ONLY X PROPERTY DAMAGE Per accident $ UMBRELLA LIAB OCCUR EACH OCCURRENCE $ AGGREGATE $ EXCESS LIAB CLAIMS -MADE DED RETENTION $ $ B WORKERS COMPENSATION AND EMPLOYERS' LIABILITY Y/ N ANYPROPRIETOR/PARTNER /EXECUTIVE OFFICER /M EMBER EXCLUDED? Yes (Mandatory in NH) N/A WZCD353182 09/30/2017 09/30/2018 X PER OTH- STATUTE ER E.L. EACH ACCIDENT $ 1,000,000 E.L. DISEASE - EA EMPLOYEE $ 1,000,000 If yes, describe under DESCRIPTION OF OPERATIONS below E.L. DISEASE - POLICY LIMIT $ 11000,000 C Professional Liability AEXNYABJKYB001 09/30/2017 09/30/2018 Per Claim $1,000,000 Aggregate $2,000,000 DESCRIPTION OF OPERATIONS / LOCATIONS / VEHICLES (ACORD 101, Additional Remarks Schedule, may be attached if more space is required) The City of Gilroy, its officers and employees is included as an Additional Insured as respects to General Liability. Waiver of Subrogation applies in favor of The City of Gilroy, its officers and employees with respects to General Liability. CERTIFICATE HOLDER CANCELLATION ©1988 -2015 ACORD CORPORATION. All rights reserved. ACORD 25 (2016/03) The ACORD name and logo are registered marks of ACORD SR ID: 15553481 BATCH: 576464 SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. The City of Gilroy AUTHORIZED REPRESENTATIVE 7351 Rosana St Gilroy Gilroy, CA 950206141 ©1988 -2015 ACORD CORPORATION. All rights reserved. ACORD 25 (2016/03) The ACORD name and logo are registered marks of ACORD SR ID: 15553481 BATCH: 576464 The Hanover Insurance Group- BUSINESSOWNERS COVERAGE FORM Table of Contents SECTION I - PROPERTY Page Number A. Coverage .................................................................................................................. ............................... 4 1. Covered Property ............................................................................................... ............................... 4 2. Property Not Covered ........................................................................................ ............................... 5 3. Covered Causes of Loss ................................................................................... ............................... 6 4. Limitations .......................................................................................................... ............................... 6 5. Additional Coverages ......................................................................................... ............................... 7 BusinessIncome ............................................................................................. ............................... 10 Business Income from Dependent Properties ............................................. ............................... 17 Civil Authority ........ ............................... 13 Collapse........................................................................................................... ............................... 8 Commercial Tools and Small Equipment ..................................................... ............................... 27 ComputerEquipment ...................................................................................... ............................... 20 Computer and Funds Transfer Fraud ............................................................ ............................... 34 DebrisRemoval ............................................................................................... ............................... 7 DeferredPayments ......................................................................................... ............................... 31 ElectronicVandalism ...................................................................................... ............................... 31 Employee Theft including ERISA Compliance .............................................. ............................... 18 EquipmentBreakdown .................................................................................... ............................... 22 ExtraExpense .................................................................................................. ............................... 12 FineArts ........................................................................................................... ............................... 28 FireDepartment Service Charge ................................................................... ............................... 8 Fire Protection Equipment Recharge ............................................................ ............................... 18 Forgeryor Alteration ...................................................................................... ............................... 13 GlassExpenses ............................................................................................... ............................... 18 Installation....................................................................................................... ............................... 27 Interruption of Computer Operations ............................................................ ............................... 32 Leasehold Interest (Tenants only) ................................................................. ............................... 29 Limited Coverage for Fungi, Wet Rot, or Dry Rot ........................................ ............................... 33 Moneyand Securities ..................................................................................... ............................... 21 Money Orders and Counterfeit Money ......................................................... ............................... 13 Ordinanceor Law ........................................................................................... ............................... 14 Preservation of Property ................................................................................ ............................... 8- Pollutant Clean -Up and Removal .................................................................. ............................... 12 Rewards - Arson, Theft and Vandalism ......................................................... ............................... 20 Sales Representative Samples ...................................................................... ............................... 29 Tenant Building Insurance - When Your Lease Requires You to Provide Insurance ............... 34 Tenant Business Personal Property Insurance - When Your Lease Requires You, to 34 ProvideInsurance ........................................................................................... ............................... Tenant Signs (Tenants Only) .......................................................................... ............................... 22 Theft of Telephonic Services .......................................................................... ............................... 34 Unauthorized Business Credit Card Use ...................................................... ............................... 30 UtilityServices ................................................................................................. ............................... 30 Water Damage, Other Liquids, Powder or Molten Material Damage ........ ............................... 10 391 -1003 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 1 of 81 6. Coverage Extensions ......................................................................................... ............................... 35 AccountsReceivable ....................................................................................... ............................... 37 Business Personal Property Temporarily in Portable Storage Units ......... ............................... 39 AppurtenantStructures ................................................................................... ............................... 38 Inventoryand Loss Appraisal ........................................................................ ............................... 39 Key Replacement and Lock Repair ............................................................... ............................... 38 Newly Acquired or Constructed Property ..................................................... ............................... 35 OutdoorProperty ............................................................................................. ............................... 36 PavedSurfaces ............................................................................................. ..............................! ... 39 PersonalEffects ............................................................................................... ............................... 36 Personal Property Off Premises .................................................................... ............................... 36 PersonalProperty In Transit .......................................................................... ............................... 38 Valuable Papers and Records (Other Than Electronic Data) ..................... ............................... 36 UndergroundPipes ......................................................................................... ............................... 40 B. Exclusions ................................................................................................................ ............................... 40 C. Limits of Insurance ....................... ........................................................................ ............................... 45 D. Deductibles ............................................................................................................... ............................... 46 E. Property Loss Conditions ........................................................................................ ............................... 47 1. Abandonment ..................................................................................................... ............................... 47 2. Appraisal ............................................................................................................. ............................... 47 3. Duties in the Event of Loss or Damage ........................................................... ............................... 47 4. Legal Action Against Us .................................................................................... ............................... 48 5. Loss Payment ..................................................................................................... ............................... 48 6. Recovered Property ........................................................................................... ............................... 50 7. Vacancy ............................................................................................................... ............................... 50 8. Pair, Sets or Parts ............................................................................................. ............................... 51 F. Property General Conditions.. I ................................................................................................................ 51 1. Control of Property ............................................................................................ ............................... 51 2. Mortgageholders ................................................................................................ ............................... 51 3: No Benefit to Bailee ........................................................................................... ............................... 52 4. Policy Period, Coverage Territory ................................................................... ............................... 52 5. Protective Devices ............................................................................................. ............................... 52 6. Increase in Hazard ............................................................................................. ............................... 52 G. Property Definitions ................................................................................................. ............................... 52 SECTION II - LIABILITY A. Coverages ................................................................................................................ ............................... 59 1. Business Liability ............................................................................................... ............................... 59 2. Medical Expenses .............................................................................................. ............................... 61 B. Exclusions ................................................................................................................ ............................... 62 1. Applicable to Business Liability Coverage ...................................................... ............................... 62 2. Additional Exclusions Applicable only to Personal and Advertising Injury .. ............................... 68 3. Additional Exclusions Applicable to Medical Expenses Coverage Only ....... ............................... 69 4. Additional Exclusions Applicable to Both Business Liability Coverage and Medical Expenses 70 Coverage - Nuclear Energy Liability Exclusion ............................................... ............................... C. Who is an Insured ................................................................................................... ............................... 71 D. Liability and Medical Expenses Limits of Insurance ............................................ ............................... 72 391 -1003 0816 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 2 of 81 The Hanover Insurance Group- E. Liability and Medical Expenses General Conditions ............................................. ............................... 73 1. Bankruptcy .......................................................................................................... ............................... 73 2. Duties in the Event of Occurrence, Offense, Claim or Suit ............................ ............................... 73 3. Legal Action Against Us .................................................................................... ............................... 73 4. Separation of Insureds ...................................................................................... ............................... 73 F. Liability and Medical Expenses Definitions ........................................................... ............................... 74 SECTION III - COMMON POLICY CONDITIONS (APPLICABLE TO SECTION I - PROPERTY AND SECTION II - LIABILITY) A. Cancellation ............................................................................................................. ............................... 77 B. Changes .................................................................................................................... ............................... 78 C. Concealment, Misrepresentation or Fraud ............................................................ ............................... 78 D. Examination of Your Books and Records .............................................................. ............................... 78 E. Inspections and Surveys ......................................................................................... ............................... 78 F. Insurance Under Two or More Coverages ............................................................ ............................... 78 G. Liberalization ........................................................................................................... ............................... 79 H. Other Insurance ....................................................................................................... ............................... 79 I. Premiums ................................................................................................................... ............................... 80 J. Premium Audit .......................................................................................................... ............................... 80 K. Transfer of Rights of Recovery Against Others to Us .......................................... ............................... 80 L. Transfer of Your Rights and Duties Under This Policy ........................................ ............................... 81 391 -1003 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 3 of 81 BUSINESSOWNERS COVERAGE FORM Various provisions in this policy restrict coverage. Read the entire policy carefully to determine rights, duties and what is and is not covered. Throughout this Coverage Form the words "you" and "your" refer to the Named Insured shown in the Declarations. The words "we ", "us" and "our" refer to the company providing this insurance. In SECTION II - LIABILITY, the word "insured" means any person or organization qualifying as such under paragraph C. Who is an Insured. Other words and phrases that appear in quotation marks have special meaning. Refer to paragraph G. Property Definitions in SECTION I - PROPERTY and paragraph F. Liability and Medical Expenses Definitions in SECTION II - LIABILITY. SECTION I - PROPERTY (d) Appliances used for A. Coverage refrigerating, ventilating, We will pay for direct physical loss of or cooking, dishwashing or laundering; damage to Covered Property at the premises described in the Declarations caused by or 6 If not covered b other insurance () Y resulting from any Covered Cause of Loss. (a) Additions under construction, 1. Covered Property alterations and repairs to the Covered Property includes Buildings as buildings or structures; described in paragraph a. below, Business (b) Materials, equipment, supplies Personal Property as described in and temporary structures, on paragraph b. below, or both, depending on or within 1,000 feet of the whether a Limit of Insurance is shown in described premises, used for the Declarations for that type of property. making additions, alterations Regardless of whether coverage is shown or repairs to the buildings or in the Declarations for Buildings, Business structures. Personal Property, or both, there is no (7) Signs, whether or not they are coverage for property described in attached to covered buildings or SECTION I - PROPERTY, A. Coverage, 2. structures; Property Not Covered. (8) Interior and Exterior Building a. Buildings, meaning the buildings and glass if you are a building owner; structures at the premises described in the Declarations, including: (9) Fences and retaining walls located on or within 1,000 feet of a (1) Completed additions; covered building or structure, (2) Fixtures, including outdoor fixtures; whether or not attached to (3) Permanently installed: buildings or structures, except for retaining walls that are used, in (a) Machinery; and whole or in part, to contain water. (b) Equipment; b. Business Personal Property located in (4) Your personal property in or on the buildings or structures at the apartments, rooms or common described premises or in the open (or in a vehicle) within 1,000 feet of the areas furnished by you as the landlord; building or structures or within 1,000 feet of the premises described in the (5) Personal property owned by you Declarations, whichever distance is that is used to maintain or service greater, including: the buildings or structures or the premises, including: (1) Property you own that is used in your business; (a) Fire protection equipment; (2) Property of others that is in your (b) Outdoor furniture; care, custody or control, including (c) Floor coverings; and the cost of labor, materials or services furnished or arranged by you on personal property of others, except as otherwise provided in SECTION I - 391 -1003 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 4 of 81 PROPERTY, E. Property Loss Condition, 5. Loss Payment paragraph d., subparagraph (3)(b); (3) Tenant's improvements and betterments. Improvements and betterments are fixtures, alterations, installations or additions: (a) Made a part of the building or structure you occupy but do not own; and (b) You acquired or made at your expense but cannot legally remove. (4) Leased personal property for which you have a written contractual responsibility to insure, unless otherwise provided in paragraph (2) above; (5) Exterior building glass, if you are a tenant and no Limit of Insurance is shown in the Declarations for Building property. The glass must be owned by you or in your care, custody or control; (6) Physical damage sustained to a building leased to you caused by or resulting from "theft" or attempted "theft ", burglary or robbery of your Business Personal Property. 2. Property Not Covered Covered Property does not include: a. Aircraft, automobiles, motortrucks and other vehicles subject to motor vehicle registration; b. Contractor's equipment, which is used or operated principally away from the premises described in the Declarations, or parts and equipment, whether attached or unattached to contractor's equipment, unless such parts and equipment is held for sale by you, or sold by you but not delivered unless specifically endorsed and scheduled, or as provided for in SECTION I - PROPERTY, B. Additional Coverages, v. Commercial Tools and Small Equipment; c. "Money" or "securities" except as provided in the: (1) Money and Securities Additional Coverage; or (2) Employee Theft Additional Coverage; d. Contraband or property in the course of illegal transportation or trade; e. Land, whether or not resurfaced with stone, gravel or similar layer (including HaThe nover Insurance Group- land on which the property is located), water, growing crops or lawns (other than lawns which are part of a vegetated roof), except as provided in SECTION I - PROPERTY, A. Coverage, 6. Coverage Extension, I. Paved Surfaces; f. Outdoor radio or television antennas (including satellite dishes) and their lead -in wiring, masts or towers, trees, shrubs or plants (other than trees, shrubs or plants which are part of a vegetated roof), all except as provided in SECTION I - -PROPERTY, A. Coverage, 6. Coverage Extension, c. Outdoor Property; g. Watercraft (including motors, equipment and accessories); h. Accounts, bills, food stamps, other evidences of debt, accounts receivable or "valuable papers and records "; except as otherwise provided in this Coverage Form; i. "Computer equipment ", which is permanently installed or designed to be permanently installed in any aircraft, watercraft, motortruck or other vehicle subject to motor vehicle registration. This paragraph does not apply to "computer equipment" while held as "stock "; j. "Electronic Data ", except as provided under the Computer Equipment and Electronic Vandalism Additional Coverages. This paragraph does not apply to your "stock" of prepackaged "software" or to "electronic data" which is integrated in and operates or controls the building's elevator, lighting, heating, ventilation, air conditioning or security system; k. Animals, unless owned by others and boarded by you, or held for sale by you, or sold but not delivered, and only while inside of buildings; I. The cost of excavations, grading, backfilling, or filling; m. Bulkheads, pilings, piers, wharves or docks; n. Retaining walls that are used, in whole or in part, to contain water. o. "Computer Equipment ", except as provided for under the: (1) Computer Equipment Additional Coverage; (2) Equipment Breakdown Additional Coverage; or 391 -1003 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 5 of 81 (3) Electronic Vandalism Additional Coverage. p. Commercial tools and small equipment except as provided in SECTION I - PROPERTY, A. Coverage, 5. Additional Coverages, v. Commercial Tools and Small Equipment or for contractor's equipment specifically endorsed and scheduled. This does not apply to your commercial tools and small equipment permanently installed or exclusively used at the described premises; q. Employee tools and small equipment except as provided for in SECTION I - PROPERTY, A. Coverage, 5. Additional Coverages, v. Commercial Tools and Small Equipment or when added by separate endorsement; r. Bridges (unless the bridge is made a part of a covered Building), roadways, walks, patios or other paved surfaces, except as provided in SECTION I - PROPERTY, A. Coverage, 6. Coverage Extensions, I. Paved Surfaces; s. Underground pipes, flues or drains except as provided in SECTION I - PROPERTY, A. Coverage, 6. Coverage Extensions, m. Underground Pipes; and t. Personal Property while airborne or waterborne. 3. Covered Causes of Loss Risks of direct physical loss unless the loss is: i a. Excluded in SECTION I - PROPERTY, B. Exclusions; or b. Limited in SECTION I - PROPERTY, A. Coverages, 4. Limitations 4. Limitations a. We will not pay for loss of or damage to: (1) 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. This limitation does not apply to SECTION I - PROPERTY, A. Coverage, 5. Additional Coverages, s. Money and Securities. (2) Property that has been transferred to a person or to a place outside the described premises on the basis of unauthorized instructions. (3) The interior of any building or structure, or to personal property in the building or structure, caused by or resulting from rain, snow, sleet, ice, sand or dust, whether driven by wind or not, unless: (a) The building or structure first sustains damage by a ` Covered Cause of Loss to its roof or walls through which the rain, snow, sleet, ice, sand or dust enters; or (b) The loss or damage is caused by or results from thawing of snow, sleet or ice on the building or structure. (4) Lawns, trees, shrubs or plants which are part of a vegetated roof, caused by or resulting from: (a) Dampness or dryness of atmosphere or of soil supporting the vegetation; (b) Changes in or extremes of temperature; (c) Disease; (d) Frost or hail; or (e) Rain, snow, ice or sleet. b. We will not pay for loss of or damage to the following types of property unless caused by any of the "specified causes of loss" or building glass breakage: (1) Animals, and then only if they are killed or their destruction is made necessary. (2) Fragile articles such as glassware, statuary, marble, chinaware and porcelain, if broken. This restriction does not apply to: (a) Glass that is part of the exterior or interior of a building or structure; (b) Containers of property held -for sale; or (c) Photographic or scientific instrument lenses. 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, bullion, gold, silver, platinum and other precious alloys or metals. This limit does not apply to jewelry and watches worth $250 or less per item. 391 -1003 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 6 of 81 5. Additional Coverages a. Debris Removal (1) Subject to paragraphs (2), (3) and (4) below, we will pay your expense to remove debris of Covered Property and other debris that is on the described premises, when such debris is caused by or results from a Covered Cause of Loss that occurs during the policy period. The expenses will be paid only if they are reported to us in writing within 180 days of the date of direct physical loss or damage. (2) Debris Removal does not apply to costs to: (a) Remove debris of property of yours that is not insured under this Coverage Form, or property in your possession that is not Covered Property; (b) Remove debris of property owned or leased to the landlord of the building where your described premises are located, unless you have a contractual responsibility to insure such property and it is insured under this Coverage Form; (c) Remove any property that is Property Not Covered except as provided under the Outdoor Property Coverage Extension; (d) Remove property of others of a type that would not be Covered Property under this Coverage Form; (e) Remove deposits of mud or earth from the grounds of the described premises; (f) Extract "pollutants" from land or water; or (g) Remove, restore or replace polluted land or water. (3) Subject to the exceptions in paragraph (4) below, the following provisions apply: (a) The most that we will pay for the total of direct physical loss or damage plus debris removal expense is the Limit of Insurance applicable to the Covered Property that has sustained loss or damage. HaThe nover Insurance Group._ (b) Subject to paragraph (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 loss or damage. However, if no Covered Property has sustained direct physical loss or damage, the most we will pay for removal of debris of other property (if such removal is covered under this Additional Coverage) is $5,000 at each location. (4) We will pay up to an additional $25,000 for debris removal expense, for each location, in any one occurrence of physical loss of 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 of or damage to the Covered Property that has sustained loss or damage. Therefore, if paragraphs (a) and /or (b) above 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. (5) 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 391 -1003 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 7 of 81 Payable $ 10,000 debris removal expense is not ($10,000 is 20% of $50,000) covered. b. Preservation of Property The debris removal expense is less than 25% of the sum of the loss If it is necessary to move Covered payable plus the deductible. The Property from:- the described premises sum of the loss payable and the to preserve it from loss or damage by debris removal expense ($49,500 + a Covered Cause of Loss, we will pay $10,000 = $59,500) is less than the for any direct physical loss of or Limit of Insurance. Therefore the damage to that property: full amount of debris removal (1) While it is being moved or while expense is payable in accordance temporarily stored at another with the terms of paragraph (3) location; and above. (2) Only if the loss or damage occurs Example #2 - within 90 days after the property is first moved. Limit of Insurance $ 90,000 This Additional Coverage does not Amount of Deductible $ 500 increase the applicable Limit of Amount of Loss $ 80,000 Insurance. Amount of Loss Payable $ 79,500 c. Fire Department Service Charge ($80,000 - $500) When the fire department is called to Debris Removal Expense $ 40,000 save or protect Covered Property from a Covered Cause of Loss, we will pay Debris Removal Expense up to $25,000 for service at each Payable premises described in the Basic Amount $10,500 Declarations, unless a higher Limit of Additional Amount $ 25,000 Insurance is shown in the Declarations. Such limit is the most we will pay The basic amount payable for regardless of the number of responding fire departments or fire debris removal expense under the units, and regardless of the number or terms of paragraph (3) above is type of services performed. calculated as follows: $80,000 ($79,500 + $500) x .25 = $20,000 This Additional Coverage applies to (capped at $10,500). The cap your liability for fire department applies because the sum of the services charges: loss payable ($79,500) and the (1) Assumed by contract or agreement basic amount payable for debris prior to loss; or removal expense ($10,500) cannot, exceed the Limit of Insurance (2) Required by local ordinance. ($90,000). d. Collapse The additional amount payable for The coverage provided under this debris removal expense is Additional Coverage - Collapse applies provided in accordance with the only to an abrupt collapse as terms of paragraph (4) above, described and limited in paragraphs because the debris removal (1), (2), (3), (4), (5), (6) and (7) below. expense ($40,000) exceeds 25% of (1) For the purpose of this Additional the loss payable plus the Coverage - Collapse, abrupt deductible ($40,000 is 50% of collapse means an abrupt falling $80,000), and because (from down or caving in of a building or paragraph (3) (a)) the sum of the any part of a building with the loss payable and debris removal result that the building or part of expense ($79,500 + $40,000 = the building cannot be occupied for $119,500) would exceed the Limit of its intended purpose. Insurance ($90,000). The additional (2) We will pay for direct physical loss amount of covered debris removal expense is $25,000, the maximum of or damage to Covered Property, payable under paragraph (4) caused by abrupt collapse of a above. Thus the total payable for building or any part of a building debris removal expense in this that is insured under this policy or example is $35,500; $4,500 of the that contains Covered Property 391 -1003 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 8 of 81 insured under this policy, if such collapse is caused by one or more of the following: (a) Building decay that is hidden from view, unless the presence of such decay is known to any insured prior to collapse; (b) Insect or vermin damage that is hidden from view, unless the presence of such damage is known to any insured prior to collapse; (c) Use of defective material or methods in construction, remodeling or renovation if the abrupt collapse occurs during the course of the construction, remodeling or renovation; or (d) Use of defective material or methods in construction, remodeling or renovation if the abrupt collapse occurs after the construction, remodeling or renovation is complete, but only if the collapse is caused in part by: (i) A cause of loss listed in paragraphs (a) or (b) above of this Additional Coverage; (ii) One or more of the "specified causes of loss "; (iii) Breakage of building glass; (iv) Weight of people or personal property; or (v) Weight of rain that collects on a roof. (3) This Additional Coverage - Collapse does not apply to: (a) A building or any part of a building that is in danger of falling down or caving in; (b) A part of a building that is standing, even if it has separated from another part of the building; or (c) A building that is standing or any part of a building that is standing, even if it shows evidence of cracking, bulging, sagging, bending, leaning, settling, shrinkage or expansion. (4) With respect to the following property: (a) Awnings; (b) Gutters and downspouts; The Hanover Insurance Group- (c) Yard Fixtures; (d) Outdoor swimming pools; (e) Beach or diving platforms or appurtenances; (f) Retaining walls; and (g) Walks, roadways and other paved surfaces; if an abrupt collapse is caused by a cause of loss listed in paragraph (2), subparagraphs (a), (b), (c) and (d) of this Additional Coverage, we will pay for loss or damage to that property only if such loss or damage is a direct result of the abrupt collapse of a building insured under this Coverage Form and the property is Covered Property under this Coverage Form. (5) If personal, property abruptly falls down or caves in and such collapse is not the result of abrupt collapse of a building, we will pay for loss or damage to Covered Property caused by such collapse of personal property only if: (a) The abrupt collapse of personal property was caused by a cause of loss listed in paragraph (2), subparagraphs (a), (b), (c) and (d) of this Additional Coverage; (b) The personal property which collapses is inside a building; and (c) The property which collapses is not of a kind listed in paragraph (4) above, regardless of whether that kind of property is considered to be personal property or real property. The coverage stated in paragraph (5) does not apply to personal property if marring and /or scratching is the only damage to that personal property caused by the collapse. (6) This Additional Coverage - Collapse does not apply to personal property that has not abruptly fallen down or caved in, even if the personal property shows evidence of cracking, bulging, sagging, bending, leaning, settling, shrinkage or expansion. (7) This Additional Coverage - Collapse will not increase SECTION I - PROPERTY, C. Limits of Insurance. (8) The term Covered Cause of Loss includes the Additional Coverage - 391 -1003 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 9 of 81 Collapse as described and limited (ii) The area within 1,000 feet of in paragraphs (1), (2), (3), (4), (5), the building or within 1,000 (6) and (7) above. feet of the premises e. Water Damage, Other Liquids, Powder described in the or Molten Material Damage Declarations, whichever distance is greater. (with If loss or damage caused by or respect to loss of or damage resulting from covered water or other to personal property in the liquid, powder or molten material open or personal property in damage loss occurs, we will also pay a vehicle); and the cost to tear out and replace any part of the building or structure to (iii) Any area within the building repair damage to the system or or at the described if that appliance from which the water or premises, area other substance escapes. services, or is used to gain access to, the portion of the We will not pay the cost to repair any building which you rent, defect that caused the loss or damage; lease or occupy. but we will pay the cost to repair or replace damaged parts of fire (b) We will only pay for loss of extinguishing equipment if the damage: Business Income that you "period sustain during the of (1) Results in discharge of any restoration" and that occurs substance from an automatic fire within the designated, protection system; or consecutive number of months (2) Is directly caused by freezing. found on the Declarations Page f. Business Income beginning immediately after the date of direct physical loss or When Business Income Coverage is damage. For purposes of this provided under this policy: insurance, all recoverable loss (1) Business Income ceases when the "period of restoration" ends. (a) We will pay for the actual loss of Business Income you sustain (c) Business Income means the: due to the necessary (i) Net Income (Net Profit or "suspension" of your Loss before income taxes) "operations" during the "period that would have been of restoration ". The earned or incurred if no "suspension" must be caused physical loss or damage had by direct physical loss of or occurred, but not including damage to. a described any Net Income that would premises shown in likely have been earned as the Declarations and for which result of an increase in the a Business Income Limit of volume of business due to Insurance is shown in the favorable business Declarations. The loss or conditions caused by the damage must be caused by or impact of the Covered result from a Covered Cause of Cause of Loss on customers Loss. or on other businesses; With respect to loss of or damage to personal property in the open or personal property in a vehicle, the described premises include the area within 1,000 feet of such premises. With respect to the requirements set forth in the preceding paragraph, if you occupy only part of a building, your premises mean: (i) The portion of the building which you rent, lease or occupy; (ii) 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 (iii) "Rental Value" 391 -1003 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 10 of 81 The Hanover Insurance Group- For manufacturing risks, Net loss or damage at the described Income includes the net sales premises caused by or resulting value of production. from any Covered Cause of (2) Extended Business Income Loss. If no Business Income Coverage is (b) Extended Business Income - provided under this Coverage Rental Value Form, then there is no Extended If the necessary "suspension" of Business Income Coverage your "operations" produces a afforded under this Coverage Form: "rental value" loss payable (a) Extended Business Income - under this Coverage Form, we Other Than Rental Value pay for the actual loss of it rental value , you incur during If the necessary "suspension" the period that: of your "operations" produces a Business Income loss payable (1) Begins the date property is under this Coverage Form, we actually repaired, rebuilt or will pay for the actual loss of replaced and tenantabilit is y Business Income you incur restored; and during the period that: (ii) Ends the earlier of: (i) Begins on the date property 1) The date you could (except "finished stock ") is restore tenant actually repaired, rebuilt or occupancy, with replaced (to the extent reasonable speed, to necessary to resume the level which would "operations ") and generate the "rental "operations" are resumed; value" that would have and existed if no direct ii Ends on the earlier of: () physical loss or damage had occurred; or 1) The date you could restore your 2) The number of operations , with consecutive days shown reasonable speed, to in the Additional the level which would Property Coverage generate the Business Schedule for Extended Income amount that Business Income after would have existed if no the date determined in direct physical loss or Extended Business damage had occurred; Income - Rental Value, or paragraph (i) above. 2) The number of However, Extended Business consecutive days shown Income does not apply to loss of in the Additional rental value incurred as a Property Coverage result of unfavorable business Schedule for Extended conditions caused by the impact Business Income after of the Covered Cause of Loss in the date determined in the area where the described (a) Extended Business premises are located. Income - Other Than Loss of "rental value" must be Rental Value, paragraph caused by direct physical loss (i) above. or damage at the described However, Extended Business premises caused by or resulting Income does not apply to loss from any Covered Cause of of Business Income incurred as Loss. a result of unfavorable business (iii) We will reduce the amount conditions caused by the of your: impact of the Covered Cause of Business Income loss, Loss in the area where the described other than Extra Expense, premises are located. to the extent you can resume your "operations ", Loss of Business Income must in whole or in part, by using be caused by direct physical - damaged or undamaged 391 -1003 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 11 of 81 property (including to continue "operations ": merchandise or "stock ") at (i) At the described premises; the described premises or or elsewhere. (iv) If you do not resume „ (ii) At replacement premises or at temporary locations, operations , or do not "operations" including relocation resume as quickly as possible, we will expenses, and costs to pay based on the length of equip and operate the replacement or temporary time it would have taken to locations. resume "operations" as quickly as possible. (b) To minimize the "suspension" of This Additional Coverage is not subject business if you cannot continue " operations ". to SECTION I - PROPERTY, C. Limits of Insurance. (c) To: g. Extra Expense (1) Repair or replace any When Business Income Coverage is property; or provided under this Coverage Form: (ii) Research, replace or (1) We will pay the necessary Extra restore the lost information on damaged "valuable Expense you incur during the "period papers and records of restoration" that you would not have incurred if there to the extent it reduces the had been no direct physical loss or amount of loss that otherwise damage to property at the would have been payable under described premises. The loss or this Additional Coverage or damage must be caused by or SECTION I - PROPERTY, A. result from a Covered Cause of Coverage, 5. Additional Loss. With respect to loss of or Coverage, f. Business Income. damage to personal property in the With regard to paragraph (i) open or personal property in a above, we will pay only for vehicle, the described premises those expenses necessary to include the area within 1,000 feet of expedite the repair or such premises. replacement of the property. With respect to the requirements Under this provision we will not set forth in the preceding pay for any portion of the paragraph, if you occupy only part ordinary and expected cost to of a building, your premises mean: actually repair or replace (a) The portion of the building property. which you rent, lease or (3) We will only pay for Extra Expense occupy; that occurs within 12 consecutive (b) The area within 1,000 feet of months beginning immediately after the building or within 1,000 feet the date of direct physical loss or damage. of the premises described in the Declarations, whichever (4) We will reduce the amount of your distance is greater (with Extra Expense loss payment to the respect to loss of or damage to extent you can return "operations" personal property in the open to normal and discontinue such or personal property in a Extra Expense. vehicle); and (5) If you do not resume "operations ", (c) Any area within the building or or do not resume "operations" as at the described premises, if quickly as possible, we will pay that area services, or is used to based on the length of time it gain access to, the portion of would have taken to resume the building which you rent, "operations" as quickly as possible. lease or occupy. This Additional Coverage is not subject (2) Extra Expense means expense to SECTION I - PROPERTY, C. Limits of incurred: Insurance. (a) To avoid or minimize the h. Pollutant Clean -Up and Removal "suspension" of business and We will pay your expense to extract "pollutants" from land or water at the 391 -1003 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 12 of 81 HaThe nover Insurance Group. described premises if the discharge, first action of civil authority that dispersal, seepage, migration, release prohibits access to the described or escape of the "pollutants" is caused premises and will apply for a by or results from a Covered Cause of period of up to four consecutive Loss that occurs during the policy weeks from the date on which such period. The expenses will be paid only coverage began. if they are reported to us in writing within 180 days of the date on which Civil Authority Coverage for Extra the Covered Cause of Loss occurs. Expense will begin immediately after the time of the first action of This Additional Coverage does not civil authority that prohibits access apply to costs to test for, monitor or to the described premises and will assess the existence, concentration or end: effects of "pollutants ". But we will pay (a) Four consecutive weeks after for testing which is performed in "pollutants" the date of that action; or the course of extracting the from the land or water. (b) When your Civil Authority The most we will pay for each location Coverage for Business Income ends; under this Additional Coverage is $25,000 for the sum of all such whichever is later. expenses arising out of Covered (3) The definitions of Business Income Causes of Loss occurring during each and Extra Expense contained in separate 12 month period of this policy. SECTION I - PROPERTY, A. i. Civil Authority Coverage, 5. Additional Coverages, When Business Income Coverage is f. Business Income; and g. Extra Expense also apply to this provided under this Coverage Form: Additional Coverage. (1) When a Covered Cause of Loss j. Money Orders and Counterfeit Money causes damage to property other than property at the described (1) We will pay for loss resulting premises, we will pay for the actual directly from your having accepted loss of Business Income you in good faith, in exchange for sustain and necessary Extra merchandise, "money" or services: Expense caused by action of civil (a) Money orders issued by any authority that prohibits access to post office, express company or the described premises due to "financial institution" that are direct physical loss or damage to not paid upon presentation; or property within one mile of the described premises, provided that (b) "Counterfeit money" that is both of the following apply: acquired during the regular course of business. (a) Access to the area immediately surrounding the damaged (2) Under this Additional Coverage, all property is prohibited by civil loss: authority as a result of the (a) Caused by one or more damage, and the described persons; or premises are within that area but are not more than one mile (b) Involving a single act or series from the damaged property; of related acts; (b) The action of civil authority is is considered one occurrence. taken in response to dangerous (3) The most we will pay for any loss physical conditions resulting under this Additional Coverage is from the damage or $5,000. continuation of the Covered k. Forgery or Alteration Cause of Loss that caused the damage, or the action is taken (1) We will pay for loss resulting to enable a civil authority to directly from forgery or alteration of have unimpeded access to the any: damaged property. (a) Check, draft, promissory note, (2) Civil Authority Coverage for bill of exchange or similar Business Income will begin 72 ,written promises of payment in hours after the time of the money that you or your agent has issued, or that was issued 391 -1003 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 13 of 81 by someone who impersonates zoning or land use you or your agent; and requirements at the (b) Credit, debit or charge slips or described premise; documents, including (ii) Is in force at the time of signatures or the entry of a loss; and Personal Identification„ Number (..) iii Was not in force at the time (PIN) into a payment the involved construction processing device" required was completed. with the use of any credit, debit, or charge card issued to But coverage under this you or any "employee" for Additional Coverage applies business purposes. only in response to the (2) Under this Additional Coverage, all minimum requirements of the ordinance or law. Losses and loss: costs incurred in complying (a) Caused by one or more with recommended actions or persons; or standards that exceed actual (b) Involving a single act or series requirements are not covered of related acts; under this Additional Coverage. is considered one occurrence. (b) The building sustains direct physical damage: (3) If you are sued for refusing to pay the check, draft, promissory note, (i) That is covered under this bill of exchange or similar written Coverage Form and as a g promises of payment in "money ", result of such damage, you on the basis that it has been forged are required to comply with or altered, and you have our the ordinance or law; or written consent to defend against (ii) That is covered under this the suit, we will pay for any Coverage Form and direct reasonable legal expenses that you physical damage that is not incur in that defense. covered under this (4) For purposes of this Additional Coverage Form and as a Coverage, check includes a result of the building substitute check as ' defined by the damage in its entirety, you United States Congress in the are required to comply with Check Clearing for the 21St Century the ordinance or law. Act and will be treated the same as (iii) But if the damage is not the original it replaced. covered under this (5) The most we will pay for any loss, Coverage Form and such including legal expenses, under damage is the subject of this Additional Coverage is $25,000, the ordinance or law, then unless a higher Limit of Insurance there is no coverage under is shown in the Schedule of this Additional Coverage Amended Limits of Insurance. even if building has also sustained covered direct I. Ordinance or Law physical damage. (1) This Additional Coverage applies (c) In the situation described in only to buildings insured on a (2) Application of Coverages, replacement cost basis. paragraph (b), subparagraph (2) Application of Coverages: (ii) 'above, we will not pay the The coverages provided under this full amount of loss otherwise payable under the terms of Additional Coverage applies only if coverages for Coverage for paragraphs (a) and (b) below, are Loss to the Undamaged satisfied and are then subject to Portion of the Building, the qualifications found in (c) Demolition Cost - Coverage or below. I ncreased Cost of (a) The ordinance or law: Construction Coverage. (i) Regulates the demolition, Instead, we will pay a construction or repair of proportion of such loss, buildings, or establishes meaning the proportion that 391 -1003 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 14 of 81 HaThe nover Insurance Group- the covered direct physical Declarations as applicable to damage bears to the total the covered building. Coverage direct physical damage. for Loss to the Undamaged Paragraph (7) of this coverage Portion of the Building does not provides an example of this increase the Limit of Insurance. procedure. (b) Demolition Cost Coverage However, if the covered direct With respect to the building that physical damage alone would have has sustained covered direct resulted in a requirement to physical damage, we will pay comply with the ordinance or law, the cost to demolish and clear then we will pay the full amount of the site of the undamaged parts the loss otherwise payable under of the same building, as a the terms of Coverages for Loss to consequence of a requirement the Undamaged Portion of the to comply with an ordinance or Building, Demolition Cost Coverage law that requires demolition of or Increased Cost of Construction such undamaged property. Coverage under this Additional Coverage. SECTION I - PROPERTY, E. (3) We will not pay under this Property Loss Conditions, 5. Loss Payment, paragraph d. Additional Coverage for: does not apply to Demolition (a) Enforcement of or compliance Cost Coverage. with any ordinance or law (c) Increased Cost of Construction which requires the demolition, repair, replacement, With respect to the building that reconstruction, remodeling or has sustained covered direct remediation of property due to physical damage, we will pay contamination by "pollutants" the increased cost to: or due to the presence, growth, (i) Repair or reconstruct proliferation, spread or any damaged portions of that activity of "fungi ", wet rot or dry building; and /or rot; or (ii) econstruct or remodel ) b The costs associated with the () undamaged portions of that enforcement of or compliance building, whether or not with any ordinance or law demolition is required; - which requires any insured or others to test for, monitor, when the increased cost is a clean up, remove, contain, consequence of a requirement treat, detoxify or neutralize, or to comply with the minimum in. any way respond to, or standards of the ordinance or assess the effects of law. "pollutants ", "fungi ", wet rot or However: dry rot. (i) This coverage applies only (4) Coverage if the restored or remodeled (a) Coverage for Loss to the property is intended for Undamaged Portion of the similar occupancy as the Building current property, unless With respect to the building that such occupancy is not permitted by zoning or land has sustained covered direct use ordinance or law. physical damage, we will pay under this Additional Coverage (ii) We will not pay for the for the loss in value of the increased cost of undamaged portion of the construction if the building building as a consequence of a is not repaired, requirement to comply with an reconstructed or ordinance or law that requires remodeled. demolition of undamaged parts SECTION I - PROPERTY, E. of the same building. Coverage Property Loss Conditions, 5. for Loss to the Undamaged Loss Payment, paragraph d. Portion of the Building is does not apply to the Increased included within the Limit of Cost of Construction Coverage. Insurance shown in the 391 -1003 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 15 of 81 (5) Loss Payment you actually spend to (a) Loss Payment provisions (b), demolish and clear-the site (c), (d) and (e) below are of the described premises. subject to the apportionment (ii) Loss payment under procedure set forth in above Increased Cost of Application of Coverages, Construction Coverage will paragraph (2)(c). be determined as follows: (b) When there is a loss in value of 1) We will not pay for the an undamaged portion of the increased cost of building to which Coverage for construction until the Loss to the Undamaged Portion property is actually of the Building applies, the loss repaired or replaced at payment for that building, the same or another including damaged and premises; and undamaged portions, will be determined as follows: 2) Unless the repairs or replacement is made (i) If the property is repaired or as soon as reasonably replaced on the same or possible after the loss another premise, we will not or damage, not to pay more than the lesser of: exceed two years. We 1) The amount you actually may extend this period spend to repair, rebuild in writing during the or reconstruct the two years. building, but not for (iii) If the building is repaired more than the amount it or replaced at the same would cost to restore premises, or if you elect to the building on the, same rebuild at another premises and to the premises, the most we will same height, floor area, pay for the Increased Cost style and comparable of Construction Coverage quality of the original is the lesser of: property insured; or 1) The increased cost of 2) The Limit of Insurance construction at the shown in' the same premises; or Declarations as applicable to the 2) The Limit of Insurance covered building. described in paragraph (d) below. (ii) If the property is not repaired or replaced. We (iv) If the ordinance or law will not pay more than the requires relocation to another premise, the most lesser of: we will pay for the 1) The actual cash value of increased cost " of the building at the time construction is the lesser of loss; or of: 2) The Limit of Insurance 1) The increased cost of shown in the construction at the new Declarations as premises; or applicable to the covered building. 2) The Limit of Insurance described in paragraph c The most we will a for the () pay (d) below. total of all covered losses for Demolition Cost Coverage and (d) The most we will pay for the Increased Cost of Construction total of all covered losses for is the Limit of Insurance shown Demolition Cost and Increased in paragraph (d) below. Subject Cost of Construction for each to this combined Limit of building described in the Insurance, the following loss Declarations is $5,000 or the payment provisions apply: amount shown in the Additional Property Schedule. (i) For Demolition Cost Coverage, we will not pay for more than the amount 391 -1003 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 16 of 81 HaThe nover Insurance Group- If a damaged building(s) is Construction loss is $18,000, subject covered under a Blanket Limit to the applicable Limit of Insurance of Insurance and the Blanket and any other applicable provisions. Limit of Insurance applies to more than one building or item Note: The same procedure applies of property, then the most we to losses under Loss to the Undamaged Portion of the Building will under this Additional and Demolition Cost of this Coverage, for each building, is Additional Coverage. $5,000, or the amount shown in the Additional Property m. Business Income from Dependent Coverage Schedule. Properties (6) Under this coverage, we will not When Business Income Coverage is pay for loss due to any ordinance provided under this Coverage Form: or law that: (1) We will pay for the actual loss of (a) You were required to comply Business Income you sustain due to with before the loss, even if the direct physical loss or damage at building was undamaged; and the premises of a "dependent (b) You failed to comply with. property" caused by or resulting from any Covered Cause of Loss. (7) Example of Proportionate Loss Payment for Ordinance or Law However, this Additional Coverage Coverage losses (procedures as does not apply when the only loss at "dependent set forth in paragraph (2)(c) of this the premises of a property" is loss or damage to Additional Coverage). "electronic data ", including Assume: destruction or corruption of Wind is a Covered Cause of "electronic data ". If the "dependent Loss; "Flood" is an excluded property" sustains loss or' damage Cause of Loss to "electronic data" and other The building has value of property, coverage under this Additional Coverage will not $200,000 continue once the other property is • The total direct physical repaired, rebuilt or replaced. damage to the building: (2) The most we will pay under this $100,000; Additional Coverage is $5,000 per • The ordinance or law in this occurrence, regardless of the jurisdiction is enforced when number of "dependent properties" building damage equals or affected. exceeds 50% of the building's (3) We will reduce the amount of your value; Business Income loss, other than Portion of direct physical Extra Expense, to the extent you can damage that is covered resume "operations ", in whole or .in (caused by wind): $30,000; part, by using any other available: Portion of direct physical (a) Source of materials; or damage that is not covered (b) Outlet for your products. (caused by "flood "): $70,000; and (4) If you do not resume "operations ", Loss under Increased Cost of or do not resume "operations" as quickly as possible, we will pay Construction: $60,000 based on the length of time it would Step 1: Determine the proportion have taken to resume "operations" that the covered direct physical as quickly as possible. damage bears to the total direct (5) The coverage period for Business physical damage. Income under this Additional $30,000 divided by $100,000 = .30 Coverage: Step 2: Apply that portion to the (a) Begins 72 hours after the time of Ordinance or Law loss. direct physical loss or damage $60,000 x .30 = $18,000 caused by or resulting from any Covered Cause of Loss at the In this example, the most we will premises of the "dependent pay under this Additional Coverage property "; and for the Increased Cost of 391 -1003 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 17 of 81 (b) Ends on the date when the property at the premises of the "dependent property" should be repaired, rebuilt or replaced (to the extent necessary to resume "operations ") with reasonable speed and similar quality or 12 months immediately following the date of direct physical loss or damage, whichever is shorter. (6) The Business Income coverage period, as stated in paragraph (4) above, does not include any increased period required due to the enforcement of or compliance with any ordinance or law that: (a) Regulates the construction, use or repair, or requires the tearing down of any property; or (b) Requires any insured or others to test for, monitor, clean up, remove, contain, treat, detoxify or neutralize, or in any way respond to, or assess the effects of "pollutants ". The expiration date of this Coverage Form will not reduce the Business Income coverage period. (7) The definition of Business Income contained in the Business Income Additional Coverage also applies to this Business Income from Dependent Properties Additional Coverage. n. Glass Expenses When glass is damaged from a Covered Cause of Loss we will pay for your expenses incurred to: (1) Put up temporary plates or board up openings if repair or replacement of damaged glass is delayed; (2) Replace lettering, artwork, sensors or other items permanently affixed to, or a part of, the damaged glass; and (3) Remove or replace obstructions when repairing or replacing glass that is part of a building. This does not include removing or replacing window displays. o. Fire Protection Equipment Recharge (including hydrostatic testing if needed) if they are discharged on or within 1,000 feet of the described premises; and (b) For loss or damage to Covered Property if such loss or damage is the result of an accidental discharge of chemicals from a fire extinguisher or a fire extinguishing system. (2) No coverage will apply if the fire extinguishing system is discharged during installation or testing. (3) The most we will pay under this Additional Coverage is $25,000 in any one occurrence. The deductible does not apply to these expenses. p. Employee Theft including ERISA Compliance (1) We will pay for loss or damage to "money ", "securities" and "other property" resulting directly from "theft" committed by an "employee ", clergy, or any non - compensated person whether identified or not, acting alone or in collusion with other persons. For the purposes of this Additional Coverage, "theft" shall also include "forgery ". (2) This Additional Coverage terminates as to any "employee" as soon as: (a) You; or (b) Any of your partners, "members ", "managers ", officers, directors or trustees not in collusion with the "employee "; "Discovered" the "theft" or any other dishonest act committed by the "employee" whether before or after becoming employed by you. (3) Under this Additional Coverage, all loss: (a) Caused by one or more persons; or (b) Involving a single act or series of related acts; is considered one occurrence. (1) We will pay: (4) We will pay only for loss you (a) The cost of recharging or sustain through acts committed or replacing, whichever is less, events occurring anytime which is your fire extinguishers and fire "discovered" by you: extinguishing systems (a) During the policy period; or 391 -1003 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 18 of 81 HaThe nover Insurance Group.. (b) No later than 1 year from the (i) Whether acting alone or in date of termination or collusion with other cancellation of this insurance. persons; or However this extended period to "discover" loss terminates (ii) While performing services immediately upon the effective for you or others; date of any other insurance Except when covered under obtained by you, whether from this Additional Coverage. us or another insurer, replacing (d) Loss that is an indirect result in whole or in part the of an occurrence covered by coverage afforded under this this Additional Coverage, Additional Coverage, whether including, but not limited to, or not such other insurance loss resulting from: provides coverage for loss sustained prior to its effective (i) Your inability to realize date. income that you would have realized had there (5) You may extend this coverage to been no loss of or damage to loss caused by any to "money ", "securities" or ,apply �� employee while temporarily "other property "; outside the Coverage Territory for a period of not more than 90 days. (ii) Payment of damages of any type for which you are 6 The most we will a for all loss () pay legally liable; resulting directly from an occurrence is $10,000 or the Limit (iii) Payment of costs, fees or of Insurance shown in the other expenses you incur Additional Property Coverage in establishing either the Schedule. Regardless of the existence or the amount of number of years this policy loss under this Additional remains in force or the number of Coverage. premiums paid, no Limit of (e) Fees, costs and expenses Insurance cumulates from year to incurred by you which are year. related to any legal action. (7) Special Employee Theft Exclusions (f) Loss or that part of any loss, We will not pay for: the proof of which as to its existence or amount is (a) Loss resulting from "theft" or dependent upon: any other dishonest act by: (i ) An inventory computation; (i) You; or or (ii) A profit and loss (ii) Any of your partners or computation. "members "; However, where you establish Whether acting alone or in wholly apart from such collusion with other persons. computations that you have (b) Loss caused by an "employee" sustained a loss, then you may if the "employee" has also offer your inventory records committed "theft" or any other and actual physical count of inventory in support of the dishonest act prior to the amount of loss claimed. effective date of this policy and you or any of your partners, (g) Loss resulting from trading, "managers ", officers, directors whether in your name or in a or trustees, not in collusion genuine or fictitious account. with the "employee ", learned of (h) Loss resulting from fraudulent that "theft" or dishonest act or dishonest signing, issuing, prior to the policy period canceling or failing to cancel, a shown in the Declarations. warehouse receipt or any (c) Loss resulting from "theft" or papers connected with it. any other dishonest act (i) Loss resulting from: committed by any of your "employees ", "managers ", (i) The unauthorized directors, trustees or disclosure of our Y authorized representatives: 391 -1003 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 19 of 81 confidential information Resulting from an occurrence, including, but not limited to, will be made to each Plan patents, trade secrets, sustaining loss in the processing methods or proportion that the Limit of customer lists; or Insurance required for each (ii) The unauthorized use or Plan bears to the total Limit of disclosure of confidential Insurance of all Plans information of another sustaining loss. person or entity which is (f) The deductible does not apply held by you including, but to this Additional Coverage. not limited to, financial q. Rewards - Arson, Theft and Vandalism information, personal information, credit card (1) We will reimburse you for payment information or similar non of any reward offered on your public information. behalf and for information that (8) Welfare and Pension Plan ERISA leads to the arrest and conviction the Compliance of person or persons responsible for: (a) The "employee benefit plan" (a) Arson; (hereafter referred to as Plan) is included as an insured under (b) "Theft" or this Additional Coverage. (c) Vandalism (b) If any Plan is insured jointly with to Covered Property. any other entity under this Additional Coverage, you or the (2) The arrest or conviction must Plan Administrator must select involve a covered loss caused b y a Limit of Insurance for this arson, "theft" or vandalism. Additional Coverage that is (3) The most we will pay under this sufficient to provide a Limit of Additional Coverage is $10,000 Insurance for each Plan that is unless a higher Limit of Insurance at least equal to that required if is shown in the Additional Property each Plan were separately Coverage Schedule. The amount insured. we pay is not increased by the (c) With respect to loss sustained number of persons involved in or "discovered" by any such providing the information. Plan, paragraph (1) above, of (4) The amount payable under this this Additional Coverage is Additional Coverage is additional replaced by the following: insurance. (1) We will pay for loss of or (5) The deductible does not apply to damage to "funds" and this Additional Coverage. other property resulting r. Computer Equipment directly from fraudulent or dishonest acts committed by (1) We will pay for direct physical loss an "employee ", whether of or damage to the following identified or not, acting Covered Property which is your alone or in collusion with property or property in your care, other persons. custody or control while at or away (d) If the first Named Insured is an from the described premises when entity other than a Plan, any loss or damage is caused by or resulting from a Covered Cause of payment we make for loss Loss: sustained by any Plan will be made to the Plan sustaining the (a) "Computer equipment "; and loss. (b) Programming documentation (e) If two or more Plans are insured and instruction manuals. under this Additional Coverage, (2) We will pay for the actual loss of any payment we make for loss: Business Income you sustain as (i) Sustained by two or more described in the Business Income Plans; or Additional Coverage and we will (ii) Of commingled "funds" or "other pay for any necessary Extra Expense you incur during the property" of two or period of restoration more Plans; 391 -1003 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 20 of 81 The Hanover Insurance Group- 391 -1003 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 21 of 81 as described in the Extra Expense (7) The following in SECTION I - Additional Coverage. PROPERTY, B. Exclusions, paragraph (3) In the event of a loss of or damage 1. do not apply to this Additional to "Computer equipment" by a Coverage: Covered Cause of Loss, we will pay (a) b. Earth Movement; and your costs to modify or replace "hardware" "software" (b) g. Water. undamaged or when it: (8) Special Computer Equipment (a) Was dependent on the damaged Exclusions "hardware" or "software" prior to We will not pay for loss or damage to the covered loss; and portable electronic devices when (b) Is not compatible with the caused by, resulting from, or arising out of "theft" or unexplained loss hardware or software that is when the property is checked replacing the property that was involved in the covered loss. baggage with a carrier for transit. Portable electronic devices includes We will only pay for your costs to laptops, tablets, e- readers, modify or replace undamaged smartphones or . other lightweight, "hardware" or "software" at a hand -held or wearable devices premises described in the capable of storing, retrieving and Declarations. processing data. The most we will pay for your costs s. Money and Securities covered in any one occurrence is $10,000. (1) We will pay for loss of "money" and "securities ": (4) We will not pay for any loss of or (a) Inside a building at the described damage to the following property: premises or "financial institution" (a) Property you rent, loan or lease resulting directly from "theft" to others while it is away from committed by a person present the described premises; inside a building at the described (b) Property you hold for sale, premises or "financial institution "; distribute or manufacture except (b) Inside a building at the described as provided in SECTION I - premises or "financial institution" PROPERTY, A. Coverage, 1. resulting directly from Covered Property, paragraph b.; disappearance or destruction; or or (c) Outside of a building at or away (c) "Software" that cannot be from the described premises in duplicated or replaced with the care and custody of a similar property of equal quality "messenger" or an armored and /or substantially similar motor vehicle company resulting functionality. directly from "theft ", (5) If we provide Building coverage only, disappearance or destruction. we will only pay for loss to (2) For the purposes of this Additional "computer equipment" that service Coverage, all loss: building operations at the described (a) Caused by one or more persons; premises and are located at the or described premises. (6) The most we will pay for any loss or single act or series of (b) Involving acts; related act damage to property described in paragraphs (1) and (2) above, is is considered one occurrence. $35,000 unless a higher Limit of (3) You must keep records of all "money" Insurance is shown in the Additional and "securities" so we can verify the Property Coverage Schedule for amount of any one loss or damage. Computer Equipment. The most we will pay for Extra Expense is $5,000 (4) The amount payable under this unless a higher Limit of Insurance is Additional Coverage is additional shown in the Additional Property insurance. Coverage Schedule for Extra Expense. 391 -1003 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 21 of 81 t. (5) The most we will pay for loss in any one PROPERTY, B. Exclusions, paragraph occurrence is: 1. does not apply to this Additional (a) $10,000 or the amount shown in the Coverage except for the following: Additional Property Coverage Schedule (a) c. Government Action; while: (b) d. Nuclear Hazard; and (1) Inside a building at the described (c) f. War and Military Action. premises; or ii Within a "financial institution" in the () (3) We will not pay for loss or damage Coverage Territory; and caused by or resulting from: (b) $5,000 or the amount shown in the (a) Wear and tear; Additional Property Coverage Schedule (b) Hidden or latent defect; while outside of a building at the (c) Rust; described premises or when away from the described premises in the Coverage (d) Corrosion; or Territory. (e) Mechanical Breakdown, except as (6) Special Money and Securities Exclusions provided for in SECTION I - We will not pay for loss: PROPERTY, A. Coverage, 5. Additional Coverages, U. (a) Resulting from accounting or arithmetic Equipment Breakdown. errors or omissions; (4) The most we will pay for loss or (b) Resulting from giving or surrendering of damage in any one occurrence is property in any exchange or purchase; $5,000 regardless of the number of (c) Of property contained in any locations or buildings involved. money- operated device unless the u. Equipment Breakdown amount of "money" deposited in it is (1) We will pay for direct physical recorded by a continuous recording damage to Covered Property that is instrument in the device; or the direct result of an "accident" or (d) Loss or damage to "money" and "electronic circuitry impairment ". We "securities" following and directly will consider "electronic circuitry related to the use of any computer to impairment" to be physical damage fraudulently cause a transfer of that to "covered equipment ". property. (2) The following coverages also apply to Tenant Signs (Tenants only) the direct result of an "accident" or (1) This Additional Coverage is available only electronic circuitry impairment". when the Named Insured is a tenant and a However, with respect to coverage A.5.u.(2)(h) Utility Services - Limit of Insurance is shown in the Declarations Page for Business Personal Equipment Breakdown (Accident) and Property. A.5.m. Business Income from Dependent Properties provided in this We will pay for direct physical loss of or coverage form, coverage will apply damage to all signs: only to the direct result of an (a) Owned.by you; or "accident" and will not apply to the (b) Owned by others but in your care, direct result of an "electronic circuitry impairment". These coverages do not custody or control; provide additional amounts of when loss or damage is caused by or insurance. resulting from a Covered Cause of Loss. (a) Data Restoration (2) SECTION I - PROPERTY, A. Coverage, 3. We will pay for your reasonable Covered Causes of Loss does not apply to and necessary cost to research, this Additional Coverage and SECTION I - replace and restore lost "data ". The most we will pay for loss or expense under this coverage, including actual loss of Business Income you sustain and 391 -1003 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 22 of 81 necessary Extra Expense you incur is $50,000. (b) Expediting Expenses With respect to your damaged Covered Property, we will pay, up to $50,000, the reasonable extra cost to: (i) Make temporary repairs; and (ii) Expedite permanent repairs or permanent replacement. (c) Fungi, Wet Rot, or Dry Rot (i) We will pay the additional cost to repair or replace Covered Property because of contamination by "fungi ", wet rot or dry rot. This includes the additional costs to clean up or dispose of such property. This does not include spoilage of personal property that is "perishable goods" to the extent that such spoilage is covered under Spoilage coverage. (ii) As used in this coverage, additional costs mean those beyond what would have been payable under this Equipment Breakdown Coverage had no "fungi ", wet rot or dry rot been involved. (iii) We will also pay the cost of testing performed after repair or replacement of the damaged Covered Property is completed only to the extent that there is reason to believe there is the presence of "fungi ", wet rot or dry rot. (iv) This coverage does not apply to lawns, trees, shrubs or plants which are part of a vegetated roof. (v) The most we will pay in any "one equipment breakdown" for loss, damage or expense under this coverage, including actual loss of Business Income you sustain and necessary Extra Expense you incur, if shown as covered, is $15,000 even if the "fungi ", wet rot or dry rot continues to be present or active or recurs in a later policy period. Hane nover Insurance Group. (d) Hazardous Substances We will pay for the additional cost to repair or replace Covered Property because of a contamination by a "hazardous substance ". This includes the additional costs to clean up or dispose of such property. This does not include contamination of "perishable goods" by refrigerant, including but not limited to ammonia, which is addressed in (g) Spoilage below. Additional costs mean those beyond what would have been payable had no "hazardous substance" been involved. The most we will pay for loss, damage or expense under this coverage, including actual loss of Business Income you sustain, and necessary Extra Expense you incur is $50,000. (e) Personal Property Off Premises Equipment Breakdown (i) Any direct physical damage for personal property off premises provided under Coverage Extension b. Personal Property Off Premises, also applies to the direct result of an "accident" or "electronic circuitry impairment ". (ii) We will also pay for your reasonable and necessary cost to research, replace and restore lost "electronic data" contained within "covered equipment" when due to covered loss or damage as described in (i) above. This amount may not exceed the limit applicable to Data Restoration coverage. (iii) The most we will pay for loss, damage or expense under this coverage, including actual loss of Business Income you sustain and necessary Extra Expense you incur and Data Restoration as described in (ii) above is $50,000. (f) Public Relations 391 -1003 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 23 of 81 (i) This coverage only applies if "accident" or "electronic you have sustained an actual circuitry impairment ", less loss of Business Income. discounts and expenses you otherwise would have had. (iii) ) We will pay for your reasonable Otherwise our payment will costs for professional services be determined in accordance to create and disseminate with the Loss Payment communications, when the Condition. need for such communications arises directly from the (iii) The most we will pay for loss interruption of your business. or damage under this This communication must be coverage is $50,000. directed to one or more of the (h) Utility Services - Equipment following: Breakdown (Accident) 1) The media; (i) Any insurance provided for 2) The public; or Business Income, Extra 3) Your customers, clients or Expense, Data Restoration or Spoilage is extended to members. apply to your loss, damage (iii) Such costs must be incurred or expense caused by a during the "period of failure or disruption of restoration" or up to 30 days service. The failure or after the "period of restoration" disruption of service must be has ended. caused by an "accident" to (iv) The most we will pay for loss equipment, including or expense under this coverage overhead transmission lines, is $5,000. that is owned by a utility, landlord, a landlord's utility (g) Spoilage or other supplier who (i) We will pay for: provides you with any of the 1) Physical damage to your "perishable following services: electrical power, waste disposal, air goods" due to conditioning, refrigeration, spoilage. heating, natural gas, 2) Physical damage to your compressed air, water, "perishable goods" due to steam, Internet access, contamination from the telecommunications release of refrigerant, services, "cloud computing including but not limited to services ", wide area ammonia. networks or data 3) Any necessary expenses transmission. The equipment you incur to reduce the must meet the definition of if amount of loss under this covered equipment except coverage. We will pay for that it is not Covered Property. such expenses to the extent that they do not exceed the (ii) "Cloud computing services" amount of loss that must be provided by a otherwise would have been professional provider with payable under this whom you have a contract. coverage. (iii) With respect to the Data (ii) If you are unable to replace Restoration portion of this "perishable goods" before its Service Interruption anticipated sale, the amount coverage, coverage will also of our payment will be apply to "data" stored in the determined on the basis of the equipment of a provider of sales price of the "perishable "cloud computing services ". goods" at the time of the (iv) Any insurance provided for Business Income or Data Restoration will not apply 391 -1003 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 24 of 81 under this Service Interruption coverage unless the failure or disruption of service exceeds 24 hours immediately following the "accident ". If the interruption exceeds 24 hours, coverage will' begin at the time of the disruption, and the applicable deductible will apply. (v) The most we will pay in any "one equipment breakdown" for loss, damage or expense under this coverage is the applicable limit for Business Income, Extra Expense, Data Restoration or Spoilage. (3) Conditions (a) Suspension When any "covered equipment" is found to be in, or exposed to, a dangerous condition, any of our representatives may immediately suspend the insurance against loss from an "accident" or "electronic circuitry impairment" to that "covered equipment ". We can do this by mailing or delivering a written notice of suspension to: (i) Your address as shown in the Declarations; or (ii) The address where the "covered equipment" is located. Once suspended in this way, your insurance can be reinstated only by an endorsement for that "covered equipment ". If we suspend your insurance, you will get a pro rata refund of premium for that "covered equipment ". But the suspension will be effective even if we have not yet made or offered a refund. (b) Jurisdictional Inspections If any property that is "covered equipment" under this Additional Coverage requires inspection to comply with state or municipal boiler and pressure vessel regulations, we agree to perform such inspection on your behalf. We do not warrant that conditions are safe or healthful. Hane nover Insurance Group.. (c) Environmental, Safety and Efficiency Improvements If "covered equipment" requires replacement due to an "accident" or "electronic circuitry impairment ", we will pay your additional cost to replace with equipment that is better for the environment, safer for people or more energy or water efficient than the equipment being replaced. However, we will not pay to increase the size or capacity of the equipment and we will not pay more than 150% of what the cost would have been to replace with like kind and quality. This provision does not apply to the replacement of component parts or to any property to which Actual Cash Value applies and does not increase any of the applicable limits. (4) Special Equipment Breakdown Exclusions (a) We will not pay for loss, damage or expense caused by or resulting from a hydrostatic, pneumatic or gas pressure test of any boiler or pressure vessel, or an electrical insulation breakdown test of any type of electrical equipment. (b) With respect to Business Income, Extra Expense and Utility Services coverages, we will also not pay for: (i) Loss caused by your failure to use due diligence and dispatch, and all reasonable means to resume business; or (ii) Any increase in loss resulting from an agreement between you and your customer or supplier. (c) Except as provided under u.2.(c) "Fungi ", Wet Rot or Dry Rot coverage we will not pay for loss, damage or expense caused directly or indirectly by the following, whether or not caused by or resulting from an "accident" or "electronic circuitry impairment ": Any "fungi," wet rot or dry rot, including any presence, growth, proliferation, spread or any activity of "fungi," wet rot or dry rot. This includes, but is not 391 -1003 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 25 of 81 limited to, costs arising from clean up, removal, or abatement of such "fungi," wet rot or dry rot. However, this exclusion does not apply to spoilage of personal property that is "perishable goods," to the extent that such spoilage is covered under Spoilage coverage. (d) This Additional Coverage - Equipment Breakdown does not apply to an "accident" or "electronic circuitry impairment" caused by or resulting from: (i) Fire (including fire resulting from an "accident" or "electronic circuitry impairment "), or water or other means used to extinguish a fire; (ii) Explosion of gas or unconsumed fuel within the furnace of any boiler or fired vessel or within the passages from that furnace to the atmosphere; (iii) Any other explosion, except as specifically covered under this Additional Coverage; (iv) Vandalism; (v) Lightning; smoke; aircraft or vehicles; riot or civil commotion; sprinkler leakage; elevator collision; (vi) Windstorm or hail; However, this exclusion does not apply when: 1) "Covered equipment" located within a building or structure suffers an "accident" or "electronic circuitry impairment" that results from wind -blown rain, snow, sand or dust; and 2) The building or structure did not first sustain wind or hail damage to its roof or walls through which the rain, snow, sand or dust entered. (vii) Breakage of glass; falling objects; weight of snow, ice or sleet; freezing (caused by cold weather); collapse or molten material; (viii) " Flood ", surface water, waves, tides, tidal waves, overflow of any body of water, or their spray, all whether driven by wind or not; mudslide or mudflow; or water that backs up or overflows from a sewer, drain or sump. However, if electrical "covered equipment" requires drying out because of the above, we will pay for the direct expenses of such drying out subject to the applicable Limit of Insurance and deductible for Building or Business Personal Property, whichever applies. (ix) Any earth movement, including but not limited to earthquake, subsidence, sinkhole collapse, landslide, earth sinking, tsunami or volcanic action. (e) Special Equipment Breakdown Exclusions (5)(d)(v), (5)(d)(vi) and (5)(d)(vii) shall not apply if: (i) The excluded cause of loss occurs away from any covered location and causes an electrical surge or other electrical disturbance; (ii) Such surge or disturbance is transmitted through utility service transmission lines to the covered location and results in an "accident" or "electronic circuitry impairment "; and (iii) The loss, damage or expense caused by such surge or disturbance is not covered elsewhere under the policy. (f) We will not pay under this Additional Coverage for any loss or damage to animals. The most we will pay for loss, damage or expense arising from any "one equipment breakdown" is the applicable Limit of Insurance shown in the Declarations. This Additional Coverage does not provide an additional amount of insurance. 391 -1003 0816 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 26 of 81 v. Commercial Tools and Small Equipment (1) This Additional Coverage is available only when a Limit of Insurance is shown in the Declarations for Business Personal Property. (2) We will pay for direct physical loss of or damage caused by or resulting from a Covered Cause of Loss to commercial tools and small equipment, including their: (a) Accessories, whether attached or not attached; and (b) Spare parts that are specifically designed and intended for use in the maintenance and operation of property covered under this Additional Coverage; That is: (c) Your property; (d) The property of others in your care, custody or control; or (e) The property of your "employees" Damage to the property of your "employees" is limited to while on the described premises. Commercial Tools and Small Equipment does not include communication devices and diagnostic equipment unless otherwise covered in SECTION I - PROPERTY, A. Coverage, 5. Additional Coverages, r. Computer Equipment. (3) This coverage only applies to any one tool or piece of small equipment with a replacement cost value of $2,500 or less, unless listed on a schedule included with this policy. (4) The most we will pay for any loss under this Additional Coverage in any one occurrence is $5,000 unless a higher Limit of Insurance is shown in the Additional Property Coverage Schedule, but not more than $2,500 for any one tool, tool box or piece of small equipment. (5) In addition to items listed within SECTION I - PROPERTY, A. Coverage, 2. Property Not Covered, we will not pay for any loss to the following property: (a) Watercraft or watercraft parts and equipment; HaThe nover Insurance Group- (b) Commercial tools and small equipment that are permanently mounted to a vehicle, including trailers; (c) Tires or tire tubes, attached or unattached, for use with commercial tools and small equipment, unless the loss or damage is caused by "theft ", malicious mischief, or any of the "specified causes of loss "; or (d) Any property while underground, airborne or waterborne. (6) The following SECTION I - PROPERTY, B. Exclusions, in paragraph 1. do not apply to this Additional Coverage: (a) b. Earth Movement; (b) g. Water. (7) Special Commercial Tools and Small Equipment Exclusion We will not pay for any loss caused by or resulting from any repair, adjusting, servicing, testing or maintenance process unless fire or explosion ensues, then only for the loss caused by such ensuing fire or explosion. w. Installation (1) This Additional Coverage is available only when a Limit of Insurance is shown in the Declarations for Business Personal Property. (2) We will pay for direct physical loss of or damage to property sold under an installation agreement where your insurable interest continues until the property is accepted by the purchaser for whom the project is to be performed. Coverage applies under this Additional Coverage when the loss or damage is caused by or resulting from any Covered Cause of Loss. (3) The property under which this insurance applies includes: (a) Materials, supplies, equipment, machinery, fixtures owned by you or in your care, custody or control, and which are to be installed by you or at your direction; and (b) Temporary structures built or assembled on -site, including cribbing, scaffolding and construction forms. 391 -1003 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 27 of 81 This property is covered while: (a) The cost to make good or replace (c) At any jobsite you do not own, faulty or defective materials or lease or operate; workmanship; (d) Awaiting and during installation, (b) Testing. However, if testing results in or awaiting acceptance by the fire or explosion, we will pay for the purchaser; loss or damage caused by that fire or (e) "In transit "; or explosion; (f) At a temporary storage location. (c) A fault, defect, deficiency, error or omission in a plan, blueprint, design (4) Coverage provided under this or specification; Additional Coverage will end when one of the following first occurs: (d) The weight of a load when it exceeds the designed capacity of any property (a) This policy expires or is covered under this Additional cancelled; Coverage to lift, move or support the (b) The property covered under this load from any position; or Additional Coverage is accepted (e) Collision, upset or overturn of any by the purchaser; property covered under this (c) Your interest in the property Additional Coverage to the extent of covered under this Additional any loss of or damage to the tires or Coverage ceases; inner tubes of such property. But we will pay for the loss of or damage to (d) You abandon the project to be the tires or inner tubes if the same performed by you for the accident causes other covered loss to purchaser, with no intention to the same property covered under this complete it; or Additional Coverage. (e) 90 days after the project to be (7) The following in SECTION I - PROPERTY, performed by you for the B. Exclusions, paragraph 1. do not apply purchaser is completed, unless to this Additional Coverage: we specify a different date in writing. (a) b. Earth Movement; and (5) In addition to SECTION I - (b) g. Water. PROPERTY, A. Coverage, 2. (8) The most we will pay for loss of or Property Not Covered, the following damage to property covered under this property is not covered with respect Additional Coverage in any one to this Additional Coverage: occurrence is $5,000, regardless if the (a) An existing building or structure property is located at a jobsite, while "in to which an addition, alteration, transit ", or at a temporary storage improvement or repair is being location. made; This Additional Coverage does not (b) Property stored at a permanent increase SECTION I - PROPERTY, C. premises that you own; Limits of Insurance. (c) A plan, blueprint, design or x. Fine Arts specification; (1) We will pay for direct physical loss to (d) Trees, grass, sod, shrubbery or "fine arts" which are your property or plants; and the property of others in your care, (e) Machinery, tools, equipment, custody or control while on the supplies or similar property that described premises. We also cover does not become a permanent your "fine arts" while temporarily on part of the project. This includes display or exhibit away from the contractor's equipment and other described premises or while "in tools belonging to a contractor transit" between the described or sub - contractor. premises and a location where the (6) Special Installation Exclusions We will not pay for any loss caused by or resulting from: 391 -1003 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 28 of 81 "fine arts" will be temporarily on display or exhibit. (2) The following of SECTION I - PROPERTY, B. Exclusions, paragraph 1. do not apply to this Additional Coverage: (a) b. Earth Movement; and (b) g. Water (3) The most we will pay for any loss under this Additional Coverage is $10,000 per occurrence regardless of the number of locations or buildings involved. (4) Special Fine Arts Exclusion We will not pay for any loss caused by or resulting from: (a) Breakage of statuary, glassware, bric -a -brac, marble, porcelain and similar fragile property. But we will pay if the loss or damage is caused directly by a "specified cause of loss ", earthquake or "flood "; and (b) Any repairing, restoration or retouching of the "fine arts ". y. Sales Representative Samples (1) We will pay for direct physical loss or damage by a Covered Cause of Loss to samples of your "stock" in trade (including containers) while: (a) In the custody of your sales representative, agent or any "employee" who travels with sales samples; (b) In your custody while acting as a sales representative; or (c) "In transit" between the described premises and your sales representatives. (2) The following of SECTION I - PROPERTY, B. Exclusions, paragraph 1. do not apply to this Additional Coverage: (a) b. Earth Movement; and (b) g. Water (3) The most we will pay for any loss or damage under this Additional Coverage is $5,000 unless a higher Limit of Insurance is shown in the Additional Property Coverage Schedule. (4) We will not pay for loss to the following property: HaThe nover Insurance Group- (a) Property which has been sold; (b) Jewelry, precious or semiprecious stones, gold, silver, platinum or other precious metals or alloys; (c) Fur, fur garments or garments trimmed with fur; or (d) Any property while waterborne. z. Leasehold Interest (Tenants Only) (1) If your lease is cancelled due to direct physical damage to property at the described premises caused by or resulting from a Covered Cause of Loss, we will pay the net loss you sustain due to increased rent under a replacement lease. (2) The most we will pay for loss because of the cancellation of any lease or leases due to the same covered cause of loss is the lesser of: (a) If your lease is cancelled and either: (i) Your landlord allows you to continue to use your premises under a new lease not to exceed the prevailing lease rate, or (ii) You relocate to other permanent premises and enter into a new lease. For the duration of the lease in effect at the time of the loss, we will pay the increase in rent between what you were paying at the time of loss and the rent you will be required to pay for equivalent premises under the replacement lease; (b) $10,000; or (c) Nothing if there is not a written or legally binding lease. (3) The following applies to paragraph (2), subparagraphs (a)(i) and (a)(ii) above: (a) If the lease in effect at the time of the loss contains a renewal option, the expiration date of the renewal option period will replace the expiration of the current lease. (b) If the lease has no end date (open- ended), we will pay the difference in rent for a period of no more than 24 months after the date of the direct physical damage to the property at the described premises. 391 -1003 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 29 of 81 (4) The following applies to paragraph Additional Coverage is $5,000 per (2), subparagraphs (a) and (b) above: occurrence. (a) $10,000 will be the maximum bb. Utility Services amount payable regardless of the number of leases affected by the (1) We will pay for loss of or damage to same Covered Cause of Loss. Covered Property caused by an interruption in service to the described (b) Existence of a renewal option will premises. The interruption must result not increase, or' have any other from direct physical loss or damage by a effect on this Limit of Insurance. Covered Cause of Loss to property not on (5) Special Leasehold Interest Exclusion the described premises that provides the services shown in paragraph (3) below. We will not pay for any loss or damage: The most we will pay for loss in any one (a) If the unit or suite rented or occurrence under this Additional Coverage is $10,000 at each described leased to you where direct premises or the Limit of Insurance shown damage occurs has been vacant in the Additional Property Coverage more than 60 consecutive days Schedule. before the loss or damage occurs, and you have not entered into an (2) We will pay for the actual loss of Business agreement to sublease the unit or Income you sustain and necessary Extra suite. Expense you incur caused by the (b) Caused by your cancelling the interruption of service at the described premises. The interruption must result lease, or from direct physical loss or damage by a (c) Caused by lessors' lease Covered Cause of Loss to property not on cancellation at the normal the described premises that provides the expiration date. services shown in paragraph (3) below. aa. Unauthorized Business Credit Card Use We will only pay for loss you sustain after (1) We will pay for loss resulting from the the first 24 hours following the direct "theft" or unauthorized use of physical loss of or damage to the property Business Credit Cards issued to you described above. or registered in your name. The most we will pay for loss in any one (2) We do not cover use of a Business occurrence under this Additional Coverage is $5,000 at each described Credit Card: premises or the Limit of Insurance shown (a) By a person who has been in the Additional Property Coverage entrusted with the card; or Schedule. (b) any of your "employees ". (3) Services: (3) All loss: (a) Water Supply Services, meaning the (a) Caused by one or more persons; following types of property supplying or water to the described premises: (b) Involving a single act or series of (1) Pumping stations; and related acts; (ii) Water mains. is considered one occurrence (b) Communication Supply Services, regardless of the number of individual meaning the following types of unauthorized transactions. property supplying communication (4) If a suit is brought against you for services, including but not limited liability, we will pay for reasonable to telephone, radio, microwave, legal expenses incurred in that television services, internet defense under this Additional access or access to any Coverage. electronic, cellular or satellite (5) The most we will pay for any loss including legal expenses, under this 391 -1003 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 30 of 81 network to the described premises, such as: (i) Communication transmission lines, including optic fiber transmission lines; (ii) Coaxial cables; and (iii) Microwave radio relays except satellites. (c) Power Supply Services, meaning the following types of property supplying electricity, steam or gas to the described premises: (i) Utility generating plants; (ii) Switching stations; (iii) Substations; (iv) Transformers; and (v) Transmission lines. (4) Services under this Additional Coverage do not include overhead transmission lines that deliver utility services to you. Overhead transmission lines include, but are not limited to: (a) Overhead transmission and distribution lines; (b) Overhead transformers and similar equipment; and (c) Supporting poles and towers. (5) As used in this additional coverage, the term transmission lines includes all lines which serve to transmit communication service or power, including lines which may be identified as distribution lines. (6) This coverage is not an additional amount of insurance. (7) Coverage under this Additional Coverage for loss or damage to Covered Property does not apply to loss or damage to "electronic data ", including destruction or corruption of "electronic data ". (8) The definitions of Business Income and Extra Expense contained in the Business Income and Extra Expense Additional Coverages also apply to this Utility Services Additional Coverage. cc. Deferred Payments (1) We will pay for your interest in lost or damaged Business Personal Property sold by you under a conditional sale or The Hanover Insurance Group- trust agreement or any installment or deferred payment plan after delivery to buyers. The loss or damage must be caused by a Covered Cause of Loss. (2) When a total loss to that property occurs, deferred payments are valued on the amount shown on your books as due from the buyer. When a partial loss to that property occurs and the buyer refuses to continue payment, forcing you to repossess, deferred payments are valued as follows: (a) If the realized value of the repossessed property is greater than or equal to the amount shown on your books as due from the buyer, we will make no payment; but (b) If the realized value of the repossessed property is less than the amount shown on your books as due from the buyer, we will pay the difference. (3) When loss occurs and the buyer continues to pay you, there will be no loss payment. (4) The most we will pay for loss under this Additional Coverage is $5,000 per occurrence. dd. Electronic Vandalism (1) SECTION I - PROPERTY, A. Coverage, 2. Property Not Covered, paragraph o. is deleted. (2) We cover direct physical loss of or damage to covered "computer equipment" at the described premises caused by "electronic vandalism ". (3) The most we will pay in any one occurrence under this Additional Coverage is $10,000. The most we pay for all covered losses under this Additional Coverage during each separate 12 -month period of this policy is $10,000. (4) Special Electronic Vandalism Exclusions We do not cover: (a) Loss of proprietary use of any "electronic data" or "proprietary programs" that have been copied, scanned, or altered; (b) Loss of or reduction in economic or market value of any "electronic 391 -1003 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 31 of 81 data" or "proprietary programs" (3) The most we will pay under this that have been copied, Additional Coverage - Interruption of scanned, or altered; and Computer Operations for all loss (c) "Theft" from your "electronic sustained and expense incurred in data" or "proprietary programs" any one policy year, regardless of of confidential information the number of interruptions or the through the observation of the number of premises, locations or "electronic data" or "proprietary computer systems involved, is programs" by accessing $10,000 unless a higher Limit of covered "computer equipment" Insurance is shown in the without any alteration or other Declarations. If loss payment relating physical loss of or damage to to the first interruption does not the records or programs. exhaust this amount, then the Confidential information balance is available for loss or includes, but is not limited to, expense sustained or incurred as a customer information, result of subsequent interruptions in processing methods, or trade that policy year. A balance secrets. remaining at the end of a policy year ee. Interruption of Computer Operations does not increase the amount of insurance in the next This Additional Coverage is only policy year. With respect to any interruption available if Business Income is covered which begins in one policy year and under this Coverage Form. continues or results in additional (1) Subject to all provisions of this loss or expense in a subsequent Additional Coverage, you may policy year(s), all loss and expense extend the insurance that applies to is deemed to be sustained or Business Income and Extra incurred in the policy year in which Expense to apply to a suspension the interruption began. of "operations" at the described (4) This Additional Coverage - premises caused by an interruption Interruption of Computer Operations in computer operations due to does not apply to loss sustained or destruction or corruption of expense incurred after the end of the "electronic data" occurring at or "period of restoration ", even if the away from the described premises amount of insurance stated in resulting from any Covered Cause paragraph (3) above has not been of Loss. exhausted. (2) With respect to the coverage (5) Coverage for Business Income does provided under this Additional not apply when a "suspension" of Coverage, the Covered Causes of "operations" is caused by destruction Loss are subject to the following: or corruption of "electronic data ", or (a) With respect to the coverage any loss or damage to "electronic provided under this Additional data ", except as provided under Coverage, the Covered Causes paragraphs (1), (2), (3) and (4) of this of Loss include "electronic Additional Coverage. vandalism ". But there is no (6) Coverage for Extra Expense does not coverage for an interruption apply when action is taken to avoid related to manipulation of a or minimize a "suspension" of computer system (including "operations" caused by "electronic "electronic data ") by any vandalism ", except as provided under employee, including a paragraphs (1), (2), (3) and (4) of this temporary or leased employee, Additional Coverage. or by an entity retained by you, (7) This Additional Coverage - or for you, to inspect, design, Interruption of Computer Operations install, modify, maintain, repair does not apply when loss or damage or replace that system. to "electronic data" involves only (b) If the Businessowners "electronic data" which is integrated Coverage Form is endorsed to in and operates or controls a add a Covered Cause of Loss, building's elevator, lighting, heating, the additional Covered Cause ventilation, air conditioning or of Loss does not apply to the security system. coverage provided under this Additional Coverage. 391 -1003 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 32 of 81 ff. Limited Coverage for Fungi, Wet Rot, or Dry Rot (1) The coverage described in paragraphs (2) and (6) below only applies when the "fungi ", wet rot or dry rot is the result of any of the "specified causes of loss" other than fire or lightning that occurs during the policy period and only if all reasonable means were used to save and preserve the property from further damage at the time of and after that occurrence. This Additional Coverage does not apply to lawns, trees, shrubs or plants which are part of a vegetated roof. (2) We will pay for loss or damage by "fungi ", wet rot or dry rot. As used in this Limited Coverage, the term loss or damage means: (a) Direct physical loss - of or damage to Covered Property caused by "fungi ", wet rot or dry rot, including the cost of removal of the "fungi ", wet rot or dry rot; (b) The cost to tear out and replace any part of the building or other property as needed to gain access to the "fungi ", wet rot or dry rot; and (c) The cost of testing performed after removal, repair, replacement or restoration of the damaged property is completed, provided there is a reason to believe that "fungi ", wet rot or dry rot is present. (3) The coverage described under this Limited Coverage is limited to $50,000. Regardless of the number of claims, this limit is the most we will pay for the total of all loss or damage arising out of all occurrences caused by or resulting from any of the "specified causes of loss" (other than fire or lightning) which take place in a 12 month period (starting with the beginning of the present policy period). With respect to a particular occurrence of loss which results in "fungi ", wet rot or dry rot, we will not pay more than the total of $50,000 even if the "fungi ", wet rot or dry rot continues to be present or active, or recurs, in a later policy period. ne Hanover Insurance Group._ (4) The coverage provided under this Limited Coverage does not increase the applicable Limit of Insurance on any Covered Property. If a particular occurrence results in loss or damage by "fungi ", wet rot or dry rot, and other loss or damage, we will not pay more for the total of all loss or damage, than the applicable Limit of Insurance on the affected Covered Property. If there is covered loss or damage to Covered Property, not caused by "fungi ", wet rot or dry rot, loss payment will not be limited by the terms of this Limited Coverage, except to the extent that "fungi ", wet rot or dry rot causes an increase in the loss. Any such increase in the loss will be subject to the terms of this Limited Coverage. (5) The terms of this Limited Coverage do not increase or reduce the coverage provided in SECTION I - PROPERTY, A. Coverage, 5 Additional Coverages, d. Collapse; and /or e. Water Damage, Other Liquids, Powder or Molten Material Damage. (6) The following applies only if Business Income and /or Extra Expense Coverage applies to the described premises and only if the "suspension" of "operations" satisfies all the terms and conditions of the applicable SECTION I - PROPERTY, A. Coverage, 5. Additional Coverages, f. Business Income and /or g. Extra Expense: (a) If the loss which resulted in "fungi ", wet rot or dry rot does not in itself necessitate a "suspension" of "operations ", but such "suspension" is necessary due to loss or damage to property caused by "fungi ", wet rot or dry rot, then our payment under SECTION I - PROPERTY, A. Coverage, 5. Additional Coverages, f. Business Income and /or g. Extra Expense is limited to the amount of loss and /or expense sustained in a period of not more than 30 days. The days need not be consecutive. (b) If a covered suspension of "operations" was caused by loss or damage other than "fungi ", wet 391 -1003 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 33 of 81 rot or dry rot, but remediation of "fungi ", wet rot, dry rot prolongs the "period of restoration ", we will pay for loss and /or expense sustained during the delay (regardless of when such a delay occurs during the "period of restoration "), but such coverage is limited to 30 days. The days need not be consecutive. gg. Theft of Telephonic Services (1) We will pay amounts you are obligated to pay that result from the "theft" of your "telephonic services" when someone who is not an "employee" gains unauthorized access to your "telephonic services" used in your business operations. (2) The most we will pay under this Additional Coverage for acts of "theft" of "telephonic services ", regardless of the number of "thefts" of "telephonic services" that you sustain in one policy year is $25,000. hh. Computer and Funds Transfer Fraud (1) We will pay for: (a) Loss resulting directly from a fraudulent: (i) Entry of "electronic data" or "computer program" into; or (ii) Change of "electronic data" or "computer program" within; any "computer equipment" owned, leased or operated by you, provided the fraudulent entry or fraudulent change causes, with regard to (1)(a)(i) and (1)(a)(ii) in the above paragraph: (iii) "Money ", "securities" or "other property" to be transferred, paid or delivered; or (iv) Your account at a "financial institution" to be debited or deleted. (b) Loss resulting directly from a "fraudulent instruction" directing a "financial institution" to debit your "transfer account" and to transfer, pay or deliver "money" or "securities" from that account. (2) As used in (1)(a) above, fraudulent entry or fraudulent change of "electronic data" or "computer program" shall include such entry or change made by an "employee" acting, in good faith, upon a "fraudulent instruction" received from a computer software contractor who has a written agreement with you to design, implement or service "computer programs" for "computer equipment" co \kered under this Insuring Agreement. (3) The most we will pay per occurrence under this Additional Coverage is $5,000 unless a higher Limit of Insurance is shown in the Schedule of Amended Limits of Insurance. (4) Under this Additional Coverage all loss: (a) Caused by one or more persons; or (b) Involving a single act or series of acts: is considered one occurrence. 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 of 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) Regardless of the number of described buildings affected, the most we will pay per insured location under this Additional Coverage is $25,000 in any one occurrence. jj. Tenant Business Personal Property 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) Subject to SECTION I -PROPERTY, E. Property Loss Conditions, 5. Loss Payment, paragraph d., subparagraph (3)(b), we will pay for 391-100308 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 34 of 81 direct physical loss of or damage to your landlord's personal property located inside of a building on the described premises 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) Regardless of the number of buildings where the landlord's personal property is located,. the most we will pay per insured location under this Additional Coverage in any one occurrence is $25,000. 6. 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: a. Newly Acquired or Constructed Property (1) Buildings If your policy covers Buildings, you may extend the insurance provided under Building to apply to direct physical loss or damage when such loss or damage is caused by a Covered Cause of Loss to: (a) Your new buildings while being built on the described premises; and (b) Buildings you acquire at premises other than the one described, intended for: (i) Similar use as the building described in the Declarations; or (ii) Used as a warehouse. (c) The most we will pay for loss or damage under this Extension for Newly Acquired or Constructed Buildings is $1,000,000 at each building. (2) Business Personal Property (a) If your policy covers Business Personal Property, you may extend the insurance provided under Business Personal Property to apply to direct physical loss or damage when such loss or damage is caused by a Covered Cause of Loss to: 'Me Hanover Insurance Group.. (i) Business Personal Property, including such property that you newly acquire, at any location you acquire; or (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. (iii) Business Personal Property that you newly acquire, located at the described premises. (b) This Extension does not apply to: (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. (c) This insurance may not be used to increase your Business Personal Property Limit. It does not apply to personal property you acquire as part of your usual customary business dealings whether or not such acquisition was related to, anticipated seasonal demands. Under the terms of this Coverage Form, such property is not considered newly acquired, but falls within the provisions for Business Personal Property. (d) The most we will pay for loss or damage under this Extension is $500,000 at each premises. (3) Business Income and Extra Expense You may extend the insurance that applies to Business Income and Extra Expense to apply to property at any location you acquire. The most we will pay for loss or damage under this Extension is $250,000 at each premise. (4) Period of Coverage With respect to insurance provided under this Coverage Extension for Newly Acquired or Constructed 391 -1003 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 35 of 81 Property, coverage will end when any of expense, caused by or resulting from the following first occurs: any of the following causes of loss: (a) This policy expires; (a) Fire; (b) 180 days after you acquire the (b) Lightning; property or begin construction of that (c) Explosion; part of the building that would qualify as Covered Property; or (d) Riot or civil commotion; (c) You report values to us. (e) Aircraft; We will charge you additional premium (f) Windstorm; or for values reported from the date you (g) Ice, snow, sleet and hail. acquire the property or begin construction of that part of the building (2) Coverage under this Extension does that would qualify as Covered Property.' not apply to property held for sale by b. Personal Property Off Premises you. (3) Regardless of the number of 1 If our policy covers Business Personal () Y P Y described premises involved, the Property, you may extend the insurance most we will pay for loss or damage provided in SECTION I - PROPERTY, A. under this Extension, including Coverage, 1. Covered Property, b. debris removal expense, is $10,000, Business Personal Property to apply to but not more than $1,000 for any one direct physical loss or damage when tree, shrub or plant. such loss or damage is caused by a Covered Cause of Loss while: d. Personal Effects (a) At a location you do not own, (1) If your policy covers Business lease or operate; or Personal Property, you may extend the insurance provided in SECTION (b) At any fair, trade show or exhibition. I - PROPERTY, A. Coverage, 1. (2) The most we will pay for loss or damage Covered Property, b. Business under this Extension is $50,000 or the Personal Property to apply to direct amount shown in the Additional Property physical loss or damage to personal Coverage Schedule, whichever is effects owned by you, your officers, greater. your partners or "members ", your (3) Special Personal Property Off Premises "managers" or your "employees" when such loss or damage is Exclusions caused by a Covered Cause of Loss. This extension does not apply to (2) This extension does not apply to: property: (a) In or on a vehicle; or (a) Tools or equipment used in your business; and (b) In the care, custody or control of (b) "Employees" tools and small your sales representative, unless the equipment; property is in such care, custody or control at a fair, trade show or (3) The most we will pay for loss or exhibition. damage under this Extension is c. Outdoor Property $10,000 at each described premises. e. Valuable Papers and Records (Other (1) You may extend insurance provided Than Electronic Data) by this Coverage Form to apply to direct physical loss or damage to your (1) If your policy covers Business radio and television antennas Personal Property, you may extend (including satellite dishes), trees, the insurance provided under shrubs, plants and lawns (other than SECTION I - PROPERTY, A. trees, shrubs or plants which are Coverage, 1. Covered Property, b. "stock" or are a part of a vegetated Business Personal Property to apply roof) including debris removal 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 391 -1003 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 36 of 81 The Hanover Insurance Group- of Loss. This Coverage Extension is caused by or results from a includes the cost to research, Covered Cause of Loss. We will replace or restore the lost pay: information on "valuable papers and (a) All amounts due from your records" for which duplicates do not customers that you are unable exist. to collect; (2) The most we will pay under this (b) Interest charges on any loan Coverage Extension for loss or required to offset amounts you damage to valuable papers and are unable to collect pending records" in any one occurrence at our payment of these amounts; the described premises is $25,000, unless a higher Limit of Insurance for c Collection expenses in excess () P "valuable papers and records" is of your normal collection shown in the Additional Property expenses that are made Coverage Schedule. necessary by loss or damage; and (3) The most we will pay under this Coverage Extension for loss or (d) Other reasonable expenses damage to "valuable papers and that you incur to re- establish records" in any one occurrence not your records of accounts at the described premises is $25,000, receivable; unless a higher Limit of Insurance for that result from direct physical loss "valuable papers and records" is or damage by any Covered Cause shown in the Additional Property of Loss to your records of accounts Coverage Schedule. receivable. (4) This Coverage Extension does not (2) We will pay under this Coverage apply to: Extension for loss or damage in (a) Property held as samples or for any one occurrence at the delivery after sale; or described premises. The most we (b) Property in storage away from will pay is $25,000 for accounts receivable at the described the premises shown in the premises, unless a higher Limit of Declarations; Insurance for accounts receivable (5) SECTION I - PROPERTY, B. is shown in the Additional Property Exclusions does not apply to this Coverage Schedule. Coverage Extension except for: (3) We will pay under this Coverage (a) Paragraph 1.c. Governmental Extension for loss or damage in Action; any one occurrence not at the (b) Paragraph 1.d. Nuclear Hazard; described premises. The most we will pay is $25,000 for accounts (c) Paragraph 11 War and Military receivable not at the described Action; premises. (d) Paragraph 2.d. Dishonesty; (4) SECTION I - PROPERTY, B. (e) Paragraph 2.e. False Pretense; Exclusions does not apply to this (f) Paragraph 2.k. Errors or Coverage Extension except for: Omissions; and (a) Paragraph 1.c. Governmental (g) Paragraph 3.a. Weather Action; Conditions, 3.b. Acts or Decisions (b) Paragraph 1.d. Nuclear Hazard; and 3.c. Negligent Work. (c) Paragraph 11 War and Military f. Accounts Receivable Action; (1) If your policy covers Business (d) Paragraph 2.d. Dishonesty; Personal Property, you may extend (e) Paragraph 2.e. False Pretense; the insurance provided in SECTION I and - PROPERTY, A. Coverage, 1. (f) Paragraph 3.a. Weather Covered Property, b. Business Conditions, 3.b. Acts or Personal Property to accounts Decisions and 3.c. Negligent receivable when such loss or damage Work. (5) Accounts Receivable Special Exclusion We will not pay for: 391 -1003 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 37 of 81 (a) Loss or damage caused by or L Personal Property in Transit resulting from alteration, (1) If your policy covers Business falsification, concealment or Personal Property, you may destruction of records of extend the insurance provided in accounts receivable done to SECTION I - PROPERTY, A. conceal the wrongful giving, Coverage, 1. Covered Property, taking or withholding of b. Business Personal Property to "money ", "securities" or apply to direct physical loss or "other property ". damage to your property or This exclusion applies only to property of others that is in your the extent of the wrongful care, custody or control while "in giving, taking or withholding. transit" when such loss or (b) Loss or damage caused by or damage is caused by or results resulting from bookkeeping, from a Covered Cause of Loss. accounting or billing errors or (2) You may extend the insurance omissions. that applies to SECTION I - (c) Any loss or damage that PROPERTY, A. Coverage, 1. requires any audit of records Covered Property, b. Business or any inventory computation Personal Property to apply to to prove its factual existence. direct physical loss or damage, caused by a Coverage Cause of g. Key Replacement and Lock Repair Loss, to outgoing shipments that (1) You may extend the insurance have been rejected, while in due provided under this Coverage course of transit back to you or Form to cover the reasonable and while awaiting return shipment necessary expense you incur due to you. to a covered "theft" for: (3) This Extension applies to the (a) Replacement of keys if they property while in: are stolen; (a) A vehicle owned, leased or (b) Lock repair; or operated by you; or (c) Rekeying, replacing or (b) The custody of a common reprogramming undamaged carrier or contract carrier. locks to accept new keys or (4) The following in SECTION I - entry codes when the building PROPERTY, B. Exclusions, security has been paragraph 1. do not apply to this compromised. Extension: (2) The most we will pay under this (a) b. Earth Movement; and Extension is $1,000. The (b) g. Water. deductible does not apply to this Extension. (5) The most we will pay for loss or h. Appurtenant Structures damage under this Coverage Extension is $10,000 unless a (1) If your policy covers . Buildings, higher Limit of Insurance is you may extend the insurance shown in the Schedule of provided under Building to apply Amended Limits of Insurance. to direct physical loss or damage (6) Special Personal Property In to garages, carports, storage buildings and other appurtenant Transit Exclusions structures, including, but not This Extension does not apply to: limited to, swimming pools, spas (a) Shipments that belong to and the associated equipment others that you are within 1,000 feet of the described transporting for a fee; premises when such loss or damage is caused by or results (b ) Property while waterborne; from a Covered Cause of Loss. (c) Salesperson's Samples; or (2) The most we will pay for loss or (d) Loss to "perishable goods" damage under this Extension is resulting from a breakdown $50,000 at each described of refrigeration equipment on premises regardless of the any vehicle owned, leased or number of buildings or structures operated by you or while in affected. the custody of a common or contract carrier. 391 -1003 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 38 of 81 j. Inventory and Loss Appraisal (1) We will pay for all reasonable expenses you incur at our written request to assist us in: (a) The investigation of a claim; (b) The determination of the amount of loss, such as taking inventory; (c) The cost of preparing specific loss documents and other supporting exhibits; or (d) Expenses you incur include costs charged to you by others, including property managers, acting on your behalf to assist us with items listed in paragraph (1) above. (2) Regardless of the number of premises involved, the most we will pay under this Extension is $10,000. (3) The deductible does not apply to these expenses. (4) Special Inventory and Loss Appraisal Exclusion We will not pay for expenses: (a) Incurred to perform your duties in the event of a loss under SECTION I - PROPERTY, E. Property Loss Conditions; (b) To prove that loss or damage is covered; (c) Billed by and payable to independent or public adjusters; attorneys; claims advocates; or any of their affiliated or associated entities; (d) To prepare claims not covered by this Coverage Form; or (e) Incurred under any appraisal provisions within the Coverage Form. k. Business Personal Property Temporarily in Portable Storage Units (1) If your policy covers Business Personal Property, you may extend .the insurance provided in SECTION - PROPERTY, A. Coverage, 1. Covered Property, b. Business Personal Property to apply to direct physical loss or damage to such property while temporarily stored in a portable storage unit (including a detached trailer) located within 1,000 feet of the buildings or structures The Hanover Insurance Group- described in the Declarations or within 1,000 feet of the described premises, whichever distance is greater when such loss or damage is caused by or results from a Covered Cause of Loss. (2) We will not pay for loss of or damage to Business Personal Property temporarily in portable storage units, caused by or resulting from rain, snow, sleet, ice, sand or dust, whether driven by wind or not, unless: (a) The portable storage unit first sustains damage by a Covered Cause of Loss to its roof or walls through which the rain, snow, sleet, ice, sand or dust enters; or (b) The loss or damage is caused by or results from thawing of snow, sleet or ice on the building or structure. (3) Coverage under this Extension: (a) Will end 90 days after the Business Personal Property has been placed in the storage unit; (b) Does not apply if the storage unit itself has been in use at the described premises for more than 90 consecutive days, even if the Business Personal Property has been stored there for 90 or fewer days as of the time of loss or damage. (4) Under this Extension, the most we will pay for the total of all loss or damage to Business Personal Property is $25,000 unless a higher limit is shown in the Additional Property Coverage Schedule for this Extension regardless of the number of storage units. (5) This Extension does not apply to loss or damage otherwise covered under this Coverage Form or any endorsement to this Coverage Form, and does not apply to loss or damage to the storage unit itself. I. Paved Surfaces (1) If your policy covers Buildings, you may extend the insurance provided under SECTION I - PROPERTY, A. Coverage, 1. Covered Property, a. Building to apply to direct physical loss or damage to your paved surfaces, including but not limited to bridges, roadways, walks, patios, and parking lots when such loss or 391 -1003 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 39 of 81 damage is caused by or results from a Covered Cause of Loss. (2) Regardless of the number of described premises involved, the most we will pay for loss or damage in any one occurrence is $25,000. (3) Payment for loss or damage to this property is included in the applicable Limit of Insurance. (4) Special Paved Surfaces Exclusion We will not pay for loss or damage caused by tree roots, freezing or thawing. m. Underground Pipes (1) If your policy covers Buildings, you may extend the insurance provided in SECTION I - PROPERTY, A. Coverage, 1. Covered Property, a. Building to apply to direct physical loss or damage to underground pipes, flues and drains when such loss or damage is caused by or results from a Covered Cause of Loss. (2) The most we will pay for loss under this Coverage Extension is the applicable Limit of Insurance. (3) Payment under this Additional Coverage is included within the Limit of Insurance. (4) Special Underground Pipes Exclusion We will not pay for loss or damage caused by tree roots. B. Exclusions 1. We will not pay for loss or damage caused directly or indirectly by any of the following. Such loss or damage is excluded regardless of any other cause or event that contributes concurrently or in any sequence to the loss. a. Ordinance or Law (1) The enforcement of or compliance with any ordinance or law: (a) Regulating the construction, use or repair of any property; or (b) Requiring the tearing down of any property, including the cost of removing its debris. (b) The increased costs incurred to comply with an ordinance or law in the course of construction, repair, renovation, remodeling or demolition of property or _removal of its debris, following a physical loss to that property. This exclusion does not apply to the Ordinance or Law Additional Coverage. b. Earth Movement (1) Earthquake, including tremors and aftershocks and any earth sinking, rising or shifting related to such event; (2) Landslide, including any earth sinking, rising or shifting related to such event; (3) Mine subsidence, meaning subsidence of a man -made mine, whether or not mining activity has ceased; (4) Earth sinking (other than sinkhole collapse), rising or shifting including soil conditions which cause settling, cracking or other disarrangement of foundations or other parts of realty. Soil conditions include contraction, expansion, freezing, thawing, erosion, improperly compacted soil and the action of water under the ground surface. But if Earth Movement, as described in paragraphs (1), (2), (3) and (4) above, results in fire or explosion, we will pay for the loss or damage caused by that fire or explosion. (5) Volcanic eruption, explosion or effusion. But if volcanic eruption, explosion or effusion results in fire, building glass breakage or volcanic action, we will pay for the loss or damage caused by that fire, building glass breakage or volcanic action. Volcanic action means direct loss or damage resulting from the eruption of a volcano when the loss or damage is caused by: (a) Airborne volcanic blast or airborne shock waves; (b) Ash, dust or particulate matter; or (c) Lava flow. (2) This exclusion, Ordinance or Law, With respect to coverage for volcanic applies whether the loss results action as set forth In paragraph (5), from: subparagraphs (a), (b) and (c) above, (a) An ordinance or law that is all volcanic eruptions that occur within enforced even if the property has not been damaged; or 391 -1003 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 40 of 81 any 168 -hour period will constitute a single occurrence. Volcanic action does not include the cost to remove ash, dust or particulate matter that does not cause direct physical loss of or damage to Covered Property. This exclusion applies regardless of whether or not any of the above, in SECTION I - PROPERTY, B. Exclusions, paragraph 1., b Earth Movement, subparagraphs(1), (2), (3), (4) and (5), are caused by an act of nature or is otherwise caused. c. Governmental Action Seizure or destruction of property by order of governmental authority. But we will pay for loss or damage caused by or resulting from acts . of destruction ordered by governmental authority and taken at the time of a fire to prevent its spread, if the fire would be covered under this Coverage Form. d. Nuclear Hazard Nuclear reaction or radiation, or radioactive contamination, however caused. But if nuclear reaction or radiation, or radioactive contamination, results in fire, we will pay for the loss or damage caused by that fire. e. Utility Services The failure of power, communication, water or other utility service supplied to the described premises, however caused, if the failure: (1) Originates away from the described premises; or (2) Originates at the described premises, but only if such failure involves equipment used to supply the utility services to the described premises from a source away from the described premises. Failure of any utility service includes lack of sufficient capacity and reduction in supply. Loss or damage caused by a surge of power is also excluded, if the surge would not have occurred but for an event causing a failure of power. But if the failure or surge of power, or the failure of communication, water or other utility service, results in a Covered Cause Hanover Insurance Group.. of Loss, we will pay for the loss or damage caused by that Covered Cause of Loss. Communication services include but are not limited to service relating to Internet access or access to any electronic, cellular or satellite network. This exclusion does not apply to loss or damage to "computer equipment" and "electronic data" or to SECTION I - PROPERTY, 5. Additional Coverages, bb. Utility Services. f. War and Military Action (1) War, including undeclared or civil war; (2) Warlike action by a military force, including action in hindering or defending against an actual or expected attack, by any government, sovereign or other authority using military personnel or other agents; or (3) Insurrection, rebellion, revolution, usurped power, or action taken by governmental authority in hindering or defending against any of these. g. Water (1) "Flood ", surface water, waves (including tidal wave or tsunami), tides, tidal water, overflow of any body of water, or spray from any of these, all whether or not driven by wind (including storm surge); (2) Mudslide or mudflow; (3) Water that backs up or overflows or is otherwise discharged from a sewer, drain, sump, sump pump; or related equipment; (4) Water under the ground surface pressing on, or flowing or seeping through: (a) Foundations, walls, floors or paved surfaces; (b) Basements, whether paved or not; or (c) Doors, windows or other openings. (5) Waterborne material carried or otherwise moved by any of the water referred to in paragraphs (1), (3) or (4) above, or material carried or otherwise moved by mudslide or mudflow. This exclusion applies regardless of whether any of paragraphs (1), (2), (3), (4) and (4bove, are caused by an act of nature or is otherwise caused. An example 391 -1003 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 41 of 81 of a situation to which this exclusion applies is the situation where a dam, levee, seawall or other boundary or containment system fails in whole or in part, for any reason, to contain the water. But if Water, as described in paragraphs (1), (2), (3), (4) and (5) above, results in fire, explosion or sprinkler leakage, we will pay for the loss or damage caused by that fire, explosion or sprinkler leakage. If electrical "covered equipment" requires drying out because of paragraphs (1), (2), (3), (4) and (5) above, we will pay for the direct expenses of such drying out subject to the applicable Limit of Insurance and Deductible for Building or Personal Property, whichever applies. h. Fungi, Wet Rot or Dry Rot Presence, growth, proliferation, spread or any activity of "fungi ", wet rot or dry rot. But if "fungi ", wet rot or dry rot results in any of the "specified causes of loss ", we will pay for the loss or damage caused by any of the "specified causes of loss ". This exclusion does not apply: (1) When "fungi ", wet rot or dry rot results from fire or lightning; or (2) To the extent that coverage is provided in the SECTION I - PROPERTY, A. Coverage, 5. Additional Coverage, ff. Limited Coverage for Fungi, Wet Rot or Dry Rot, with respect to loss or damage by a cause of loss other than fire or lightning. i. Virus or Bacteria (1) Any virus, bacterium or other microorganism that induces or is capable of inducing physical distress, illness or disease. (2) However, the exclusion in paragraph (1) above, does not apply to loss or damage caused by or resulting from "fungi ", wet rot or dry rot. Such loss or damage is addressed in SECTION PROPERTY, B. Exclusions, paragraph 1., h. Fungi, Wet Rot or Dry Rot. (3) With respect to any loss or damage subject to the exclusion in paragraph (1) above, such exclusion supersedes any exclusion relating to "pollutants ". SECTION I - PROPERTY, B. Exclusions, paragraphs 1.a., 1.b., 1.c., 1.d., 1.e., 1.f., 1.g., 1.h. and 1.i. apply whether or not the loss event results in widespread damage or affects a substantial area. 2. We will not pay for loss or damage caused by or resulting from any of the following: a. Consequential Losses Delay, loss of use or loss of market, however caused. b. Smoke, Vapor and Gas Smoke, vapor or gas from agricultural smudging or industrial operations. c. Frozen Plumbing Water, other liquids, powder or molten material that leaks or flows from plumbing, heating, air conditioning or other equipment (except fire protective systems) caused by or resulting from freezing, unless: (1) You do your best to maintain heat in the building or structure; or (2) You drain the equipment and shut off the supply if the heat is not maintained. d. Dishonesty Dishonest or criminal act by you, any of your partners, "members ", officers, managers, employees, directors, trustees, authorized representatives or anyone to whom you entrust the property for any purpose: (1) Acting alone or in collusion with others; or (2) Whether or not occurring during the hours of employment. This exclusion does not apply to acts of destruction by your employees; but "theft" by employees is not covered. This exclusion does not apply to coverage that is provided under the Employee Theft Including ERISA Additional Coverage. e. False Pretense Voluntary parting with any property by you or anyone else to whom you have sold, given or otherwise entrusted the property if induced to do so by any fraudulent scheme, trick, device or false pretense. This exclusion does not apply to the Unauthorized Business Card Use Additional Coverage. f. Exposed Property Rain, snow, ice or sleet to personal property in the open. g. Collapse 391 -1003 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 42 of 81 (1) Collapse, including any of the following conditions of property or any part of the property: (a) An abrupt falling down or caving in; (b) Loss of structural integrity, including separation of parts of the property or property in danger of falling down or caving in; or (c) Any cracking, bulging, sagging, bending, leaning, settling, shrinkage or expansion as such condition relates to paragraphs (a) or (b) above. But if collapse results in a Covered Cause of Loss at the described premises, we will pay for the loss or damage caused by that Covered Cause of Loss. (2) This Exclusion g. does not apply: (a) To the extent that coverage is provided under SECTION I - PROPERTY, A. Coverage, 5. Additional Coverages, d. Collapse; or (b) To collapse caused by one or more of the following: (i) Any of the "specified causes of loss" (ii) Breakage of building glass; (iii) Weight of rain that collects on a roof; or (iv) Weight of people or personal property h. Pollution Discharge, dispersal, seepage, migration, release or escape of "pollutants" unless the discharge, dispersal, seepage, migration, release or escape is itself caused by any of the "specified causes of loss ". But if the discharge, dispersal, seepage, migration, release or escape of "pollutants" results in any of the "specified causes of loss ", we will pay for the loss or damage caused by any of the "specified causes of loss ". i. Neglect Neglect of an insured to use all reasonable means to save and preserve property from further damage at and after the time of loss. j. Other Types of Loss (1) Wear and tear; Hane nover Insurance Group.. (2) Rust or other corrosion, decay, deterioration, hidden or latent defect or any quality in property that causes it to damage or destroy itself; (3) Smog; (4) Settling, cracking, shrinking or expansion; (5) Nesting or infestation, or discharge or release of waste products or secretions, by insects, birds, rodents or other animals; or (6) Mechanical breakdown, including rupture or bursting caused by centrifugal force. This exclusion does not apply with respect to the breakdown of "computer equipment ". This exclusion does not apply to the Equipment Breakdown Additional Coverage. (7) The following causes of loss to personal property: (a) Dampness or dryness of the atmosphere; (b) Changes in or extremes of temperature; or (c) Marring or scratching. But if an excluded cause of loss that is listed in paragraphs (1), (2), (3), (4), (5), (6) and (7) above, results in any of the "specified causes of loss ", "accident ", "electronic circuity impairment" or building glass breakage, we will pay for the loss or damage caused by any of the "specified causes of loss ", "accident ", "electronic circuity impairment" or building glass breakage. k. Errors or Omissions Errors or omissions in: (1) Programming, processing or storing "electronic data" or in any "computer equipment" operations; or (2) Processing or copying "valuable papers and records ". However, we will pay for direct physical loss or damage caused by resulting fire, "accident ", "electronic circuity impairment" or explosion if these causes of loss would be covered by this Coverage Form. I. Installation, Testing, Repair Errors or deficiency in design, installation, testing, maintenance, modification or 391 -1003 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 43 of 81 repair of your "computer equipment" system including "software ". However, we will pay for direct physical loss or damage caused by resulting fire or explosion if these causes of loss would be covered by this Coverage Form. m. Electrical Disturbance Electrical or magnetic injury, disturbance or erasure of "electronic data ", except as provided for in SECTION I - PROPERTY, A. Coverage, 5. Additional Coverages, and 6. Coverage Extensions. However, we will pay for direct loss or damage caused by lightning. n. Artificially Generated Electricity Artificially generated electric current including electric arcing, that disturbs electrical devices, appliances or wires except as provided for in SECTION I - PROPERTY, A. Coverage, 5. Additional Coverages, u. - Equipment Breakdown. But, if artificially generated electric current results in fire, we will pay for the loss or damage caused by fire. o. Computer Processing Exclusion (1) Errors or omissions in programming or incorrect instructions to "hardware "; (2) Electrical or magnetic damage, disturbance of recordings or erasure of electronic recordings, except as provided under SECTION I - PROPERTY, A. Coverage, 5. Additional Coverages, u. Equipment Breakdown. We will also pay for direct loss caused by lightning; (3) Mechanical breakdown or malfunction, component failure, faulty installation or blowouts; except as provided for under SECTION I - PROPERTY, A. Coverage, 5. Additional Coverages, u. Equipment Breakdown; or (4) Faulty instruction or incorrect usage, including changes in arrangements or parts. p. Loss of Warranty Loss of warranty or similar future or potential benefit even when following a covered loss or covered damage. (1) Loss of this type does not meet direct physical loss or damage. (2) We agree that reasonable repair or reconditioning measures be pursued to ensure soundness of property after loss or damage: (a) Where proper and adequate report or reconditioning method is debated, you and we agree to follow the usual and customary industry repair and reconditioning practices; or (b) For situations not resolved by paragraph (a) above, either party may demand that the matter be resolved through Appraisal as provided for elsewhere in the Coverage Form. q. Continuous or Repeated Seepage or Leakage of Water Continuous or repeated seepage or leakage of water, or the presence or condensation of humidity, moisture or vapor, that occurs over a period of 14 days or more. r. Authorized Access Loss resulting from a fraudulent: (1) Entry of "electronic data" or "computer program" into; or (2) Change of "electronic data" or "computer program" within; any "computer equipment" owned, leased or operated by you by a person or organization with authorized access to that "computer equipment ", except when covered under SECTION I - PROPERTY, A. Coverage, 5. Additional Coverages, hh. Computer and Funds Transfer Fraud, paragraph b.. s. Fraudulent Instructions Loss resulting from an "employee" or "financial institution" acting upon any instruction to: (1) Transfer, pay or deliver "money ", "securities" or "other property "; or (2) Debit or delete your account; which instruction proves to be fraudulent, except when covered under SECTION I - PROPERTY, A. Coverage, 5. Additional Coverages, hh. Computer and Funds Transfer Fraud, paragraphs a.(2) and b.. 3. We will not pay for loss or damage caused by or resulting from paragraphs a., b. and c. below. But if an excluded cause of loss that is listed in paragraphs a., b. and c. below, results in a Covered Cause of Loss, we will pay for the loss or damage caused by that Covered Cause of Loss. a. Weather Conditions 391 -1003 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 44 of 81 But this exclusion only applies if weather conditions contribute in any way with a cause or event excluded in SECTION I - PROPERTY, B. Exclusions, paragraph 1. to produce the loss or damage. b. Acts or Decisions Acts or decisions, including the failure to act or decide, of any person, group, organization or governmental body. c. Negligent Work Faulty, inadequate or defective: (1) Planning, zoning, development, surveying, siting; (2) Design, specifications, workmanship, repair, construction, renovation, remodeling, grading, compaction; (3) Materials used in repair, construction, renovation or remodeling; or (4) Maintenance; of part or all of any property on or off the described premises. 4. Additional Exclusion The following applies only to the property specified in this Additional Exclusion: Loss or Damage to Products We will not pay for loss or damage to any merchandise, goods or other product caused by or resulting from error or omission by any person or entity (including those having possession under an arrangement where work or a portion of the work is outsourced) in any stage of the development, production or use of the product, including planning, testing, processing, packaging, installation, maintenance or repair. This exclusion applies to any effect that compromises the form, substance or quality of the product. But if such error or omission results in a Covered Cause of Loss, we will pay for the loss or damage caused by that Covered Cause of Loss. S. Business Income and Extra Expense Exclusions We will not pay for: a. Any Extra Expense or increase of Business Income loss caused by or resulting from: (1) Delay in rebuilding, repairing or replacing the property or resuming "operations ", due to interference at the location of the rebuilding, repair or replacement by strikers or other persons; The Hanover Insurance Group.. (2) "Suspension ", lapse or cancellation of any license, lease or contract. But if the "suspension ", lapse or cancellation is directly caused by the "suspension" of "operations ", we will cover such loss that affects your Business Income during the "period of restoration" in accordance with the terms of SECTION I - PROPERTY, A. Coverage, 5. Additional Coverages, f. Business Income, (2) Extended Business Income. (3) Damage or destruction of "finished stock "; the time required to reproduce "finished stock "; or (4) Any other consequential loss. Paragraph 5.a.(3) does not apply to Extra Expense. C. Limits of Insurance 1. The most we will pay for loss or damage in any one occurrence is the applicable Limits of Insurance of SECTION I - PROPERTY shown in the Declarations. 2. The amounts of insurance applicable to the Coverage Extensions and the following Additional Coverages apply in accordance with the terms of such coverages and are in addition to SECTION I - PROPERTY, C. Limits of Insurance: a. Fire Department Service Charge; b. Pollutant Clean -Up and Removal; c. Civil Authority; d. Money Orders and Counterfeit Money; e. Forgery or Alteration; f. Ordinance or Law; g. Business Income from Dependent Properties; h. Glass Expenses; i. Fire Protection Equipment Recharge j. Employee Theft; k. Rewards - Arson and Theft; I. Computer Equipment; m. Tenant Signs (Tenants Only); n. Commercial Tools and Small Equipment; o. Installation; p. Fine Arts; q. Sales Representative Samples; r. Leasehold Interest (Tenants Only); s. Unauthorized Business Credit Card Use; t. Deferred Payments; 391 -1003 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 45 of 81 u. Money and Securities; the Limit of Insurance for the v. Electronic Vandalism; building. w. Interruption of Computer Operations; 4. Business Personal Property Limit - x. Theft of Telephonic Services; Seasonal Increase y' Computer and Funds Transfer Fraud; p a. The Limit of Insurance for Business Personal Property will increase by 25% z. Tenant Building Insurance - When Your to provide for seasonal variations. Lease Requires You to Provide Insurance; or b. This increase will apply only if the Limit of Insurance shown for Business aa. Tenant Business Personal Property Personal Property in the Declarations is Insurance - When Your Lease Requires at least 100% of your average monthly You to Provide Insurance. values during the lesser of: 3. Building Limit - Increase (1) The 12 months immediately If Covered Property is written on a preceding the date the loss or Replacement Cost basis: damage occurs; or a. The Limit of Insurance for Buildings will (2) The period of time you have been in be revised by changes that occurred in business as of the date the loss or the cost of construction during the damage occurs. preceding policy year. D. Deductibles b. The amount of increase will be 1. We will not pay for loss or damage in any determined by reports of a recognized one occurrence until the amount of loss or valuation method. damage exceeds the Deductible shown in c. We will inform you of such adjusted the Declarations. We will then pay the values. Upon their acceptance, you amount of loss or damage in excess of the agree to pay any additional premium for Deductible up to the applicable limit in the adjusted limit. Payment of your SECTION I - PROPERTY, C. Limit of renewal premium, which includes the Insurance. revised Limit of Insurance, shall 2. No Deductible applies to the following constitute acceptance. Additional Property Coverages and d. We will pay the replacement cost value Extensions of Coverage: of the damaged portion of the building a. Fire Department Service Charge; at the time of loss, but not more than 125 of the Limit of Insurance for /o Equipment b. Fire Protection Rechar e; g Building if: c. Business Income; (1) The amount of any loss covered by d. Extra Expense; this Coverage Form exceeds the e. Civil -Authority; Limit of Insurance for Building stated in the Declarations for the f. Key Replacement and Lock Repair; damaged Building; and g. Deferred Payment; (2) The actual repair or replacement is h. Debris Removal; completed within one year of the date of loss. i. Rewards - Arson, Theft and Vandalism; e. The Building Limit - Increase clause will j• ERISA Compliance; not apply if: k. Preservation of Property; (1) You do not accept the adjusted I. Pollutant Clean -Up and Removal; value; or m. Ordinance or Law; (2) You do not inform us of changes to n. Leasehold Interest (Tenants Only); covered Building: (a) Within sixty (60) days of the date o. Unauthorized Business Credit Card Use; any additions, improvements or enlargements to the building are p. Business Income from Dependent begun, and Properties; and (b) When the replacement value of q. Inventory and Loss Appraisal. the changes are more than 5 %of 3. A $250 Deductible applies to the following Coverages: a. Glass - Interior and Exterior; and 391 -1003 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 46 of 81 ne Hanover Insurance Group._ 391 -1003 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 47 of 81 b. Glass Expenses. 3. Duties in the Event of Loss or Damage 4. A $500 Deductible applies to all of the- a. You must see that the following are done in Additional Property Coverages and the event of loss or damage to Covered Extensions of Coverage scheduled on the Property: Declarations, except Equipment (1) Notify the police if a law may have been Breakdown, unless otherwise indicated in broken. paragraphs 2., 3. or 5. of this section. (2) Give us prompt notice of the loss or 5. A $1,000 Deductible applies to the damage. Include a description of the following Additional Property Coverages property involved. and Extensions of Coverage: (3) As soon as possible, give us a a. Employee Theft (except ERISA description of how, when and where the Compliance); loss or damage occurred. b. Sales Representative Samples; (4) Take all reasonable steps to protect the c. Installation; Covered Property from further damage, d. Personal Property Off Premises; and keep a record of your expenses necessary to protect the Covered e. Personal Property In Transit. Property, for consideration in the 6. The Deductible shown in the Declarations settlement of the claim. This will not increase SECTION I - PROPERTY, C. for the Equipment Breakdown Additional Limits of Insurance. However, we will not Coverage applies to the Additional pay for any subsequent loss or damage Coverage for Equipment Breakdown. resulting from a cause of loss that is not 7. Each Deductible shall be applied a Covered Cause of Loss. Also, if separately, but only to the coverage feasible, set the damaged property aside specified. The total Deductible for all and in the best possible order for losses in one occurrence will be the examination. highest Deductible amount that applies to (5) At our request, give us complete that occurrence. inventories of the damaged and 8. The Business Income Waiting Period undamaged property. Include quantities, shown on the Declarations Page for the costs, values and, amount of loss Business Income and Civil Authority claimed. Additional Coverages is applicable in addition to a Deductible. (6) As often as may be reasonably required, permit us to inspect the property proving E. Property Loss Conditions the loss or damage and examine your 1. Abandonment books and records. There can be no abandonment of any Also permit us to take samples of property to us. damaged and undamaged property for inspection, testing and analysis, and 2. Appraisal PP permit us to make copies from your If you and we disagree on the amount of a books and records. covered loss, either may make written (7) Send us a signed, sworn proof of loss demand for an appraisal of the loss. In containing the information we request to this event, each party will select a investigate the claim. You must do this competent and impartial appraiser. The within 60 days after our request. We will two appraisers will select an umpire. If supply you with the necessary forms. they cannot agree, either may request that selection be made by a judge of a court (8) Cooperate with us in the investigation or having jurisdiction. The appraisers will settlement of the claim. state separately the amount of loss. If they (9) Resume all or part of your "operations" fail to agree, they will submit their as quickly as possible. differences to the umpire. A decision agreed to by any two will be binding. Each b• We may examine any insured under party will: oath, while not in the presence a. Pay its chosen appraiser; and of any other insured and at such times as may be reasonably b. Bear the other expenses of the required, about any matter appraisal and umpire equally. If there is an appraisal, we will still retain our right to deny the claim. 391 -1003 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 47 of 81 relating to this insurance or the claim, including an insured's books and records. In the event of an examination, an insured's answers must be signed. 4. Legal Action Against Us No one may bring a legal action against us under this insurance unless: a. There has been full compliance with all of the terms of this insurance; and b. The action is brought within 2 years after the date on which the direct physical loss or damage occurred. The 2 year limitation also applies to indirect or consequential loss covered under this Coverage Form. 5. Loss Payment In the event of loss or damage covered by this Coverage Form: a. At our option, we will either: (1) Pay the value of lost or damaged property; (2) Pay the cost of repairing or replacing the lost or damaged property; (3) Take all or any part of the property at an agreed or appraised value; or (4) Repair, rebuild or replace the property with other property of like kind and quality, subject to paragraph d., subparagraph (1)(d) below. b. We will give notice of our intentions within 30 days after we receive the sworn proof of loss. c. We will not pay you more than your financial interest in the Covered Property. d. We will determine the value of Covered Property as follows: (1) At replacement cost without deduction for depreciation except as provided in paragraphs (2), (3), (4), (5), (6), (7), (8), (9), (10), (11), (12), (13), (14), (15) and (16) below. (a) You may make a claim for loss or damage covered by this insurance on an actual cash value basis instead of a replacement cost basis. In the event you elect to have loss or damage settled on an actual cash value basis, you may still make a claim on a replacement cost basis if you notify us of your intent to do so within 180 days after the loss or damage. (b) We will not pay on a replacement cost basis for any loss or damage: (i) Until the loss or damaged property is actually repaired or replaced; (ii) Unless the repairs or replacement are made as soon as reasonably possible after the loss or damage; and (iii) Unless the repairs or replacement are completed within 24 months for personal property or for buildings and other real property after the loss or damage, unless extended in writing by us. However, if the cost to repair or replace a damaged building is $2,500 or less we will determine the value at replacement cost without deduction for depreciation. (c) We will not pay more for loss or damage on a replacement cost basis than the least of the following amounts: (i) The cost to replace, on the same premises, the lost or damaged property with other property: 1) Of comparable material and quality; and 2) Used for the same purpose; or The amount that you actually spend that is necessary to repair or replace the lost or damaged property. If a building is rebuilt at a new location, the recoverable amount is limited to the cost which would have been incurred had the building been built at the original premises. (d) The cost to repair, . rebuild or replace does not include the increased cost attributable to enforcement of any ordinance or law regulating the construction, use or repair of any property. (2) If the Declarations indicate the Actual Cash Value applies to Building or Personal Property, paragraph (1) above does not apply to that property. Instead, we will determine the value of that property at the actual cash value. 391 -1003 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 48 of 81 HaThe nover Insurance Group- (3) The following property at actual (ii) Divide the amount cash value: determined in paragraph (1) (a) Used or second -hand above by the number of days from the installation of merchandise held in storage improvements to the or for sale; expiration of the lease. (b) Property of others. However, if If your lease contains a renewal an item(s) of personal option, the expiration of the property of others is subject to renewal option period will a written contract which replace the expiration of the governs your liability for loss lease in this procedure. or damage to that item(s), then valuation of that item(s) (c) Nothing if others pay for repairs will be based on the amount or replacement. for which you are liable under (6) "Valuable papers and records" at such contract, but not to the cost of restoration or exceed the lesser of the replacement, including the cost of replacement cost of the data entry, re- programming, property or the applicable computer consultation services and Limit of Insurance; the "media" on which the data or (c) Household contents, except programs reside. To the extent that personal property in the contents of the "valuable papers apartments or rooms and records" are not restored, the furnished by you as landlord; "valuable papers and records" will (d) Manuscripts; be valued at the cost of replacement with blank materials of (e) Works of art, "antiques" or substantially identical type. rare articles, including but not (7) "Money" at its face value; and limited to, etchings, pictures, statuary, marbles, bronzes, (8) "Securities" at their value at the porcelains, glassware and close of business on the day the bric -a -brac not otherwise loss is "discovered ". covered in SECTION I - (9) Accounts Receivable: PROPERTY, A. Coverage, 5. Additional Coverage, x. Fine (a) If you cannot accurately Arts; or establish the amount of accounts receivable outstanding (f) Commercial Tools and Small as of the time of loss or Equipment and Contractors damage: Tools and Equipment. This does not apply to your (i) We will determine the total Commercial Tools and Small of the average monthly Equipment permanently amounts of accounts installed or exclusively used receivable for the 12 months at the described premises. immediately preceding the month in which the loss or (4) Glass at the cost of replacement damage occurs; and with safety glazing material if required by law. (ii) We will adjust that total for any normal fluctuations in (5) Tenant's Improvements and the amount of accounts Betterments at: receivable for the month in (a) Replacement cost if you make which the loss or damage repairs promptly. occurred or for any (b) A proportion of your original demonstrated variance from the average for that month. cost if you, as the tenant, do not make repairs promptly. We (b) The following will be deducted will determine the from the total amount of proportionate value as follows: accounts receivable, regardless (i) Multiply the original cost of how that amount is established: by the number of days from the loss or damage (i) The amount of the accounts to the expiration of the for which there is no loss or lease; and damage; 391 -1003 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 49 of 81 (ii) The amount of the accounts that you are able to re- establish or collect; (iii) An amount to allow for probable bad debts that you are normally unable to collect; and (iv) All unearned interest and service charges. (10) "Stock" you have sold but not delivered at the selling price less discounts and expenses you otherwise would have had. (11) "Finished stock" you manufactured at selling price less discounts and expenses you otherwise would have had. (12)Personal Property in Transit (other than "stock" you have sold) at the amount of invoice, including your prepaid or advanced freight charges and other charges which may have accrued or become legally due since the shipment. If you have no invoice, actual cash value will apply. (13) Precious metals, such as gold, silver and platinum, at the average market cost of replacements on the date of loss, or the actual cost of the replacement, if less. (14) "Fine Arts" We will pay the lesser of: (a) The market value at the time of loss or damage; (b) The reasonable cost of repair or restoration to the condition immediately before the covered loss or damage; or (c) The cost of replacement with substantially identical property. e. Our payment for loss of or damage to personal property of others will only be for the account of the owners of the property. We may adjust losses with the owners of lost or damaged property if other than you. If we pay the owners, such payments will satisfy your claims against us for the owners' property. We will not pay the owners more than their financial interest in the Covered Property. f. We may elect to defend you against suits arising from claims of owners of property. We will do this at our expense. g. We will pay for covered loss or damage within 30 days after we receive a properly completed sworn proof of loss, provided you have complied with all of the terms of this Coverage Form, and (1) We have reached agreement with you on the amount of loss; or (2) An appraisal award has been made. h. In settling covered losses involving a party wall, we will pay a proportion of the loss, to the party wall based on your interest in the wall in proportion to the interest of the owner of the adjoining building. A party wall is a wall that separates and is common to adjoining buildings that are owned by different parties. However, if you elect to repair or replace your building and the owner of the adjoining building elects not to repair or replace that building, we will pay you the full value of the loss to the party wall, subject to all applicable policy provisions including Limits of Insurance, the Valuation and all other provisions of this Loss Payment Condition. Our payment under the provisions of this paragraph does not alter any right of subrogation we may have against any entity, including the owner or insurer of the adjoining building, and does not alter the terms of SECTION III - COMMON POLICY CONDITIONS, K. Transfer of Rights of Recovery Against Others to Us in this policy. 6. Recovered Property If either you or we recover any property after loss settlement, that party must give the other prompt notice. At your option, you may retain the property. But then you must return to us the amount we paid to you for the property. We will pay recovery expenses and the expenses to repair the recovered property, subject to SECTION I - PROPERTY, C the Limits of Insurance. 7. Vacancy a. Description of Terms (1) As used in this Vacancy Condition, the term building and the term vacant have the meanings set forth in paragraphs (a) and (b) below: (a) When this policy is issued to a tenant, and with respect to that tenant's interest in Covered Property, building means the unit or suite rented or leased to the tenant. Such leased space is vacant when it does not contain 391 -1003 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 50 of 81 enough business personal property to conduct customary "operations ". (b) When this policy is issued to the owner or general lessee of a building, building means the entire building. Such building is vacant unless at least 31% of its total square footage is: (i) Rented to a lessee or sub - lessee and used by the lessee or sub- lessee to conduct its customary operations; and /or (ii) Used by the building owner to conduct customary operation. (2) Buildings under construction or renovation are not considered vacant when customary "operations" cannot be conducted as a direct result of the construction or renovation. b. Vacancy Provisions If the building or leased space where loss or damage occurs has been vacant for more than 60 consecutive days before that loss or damage occurs: (1) We will not pay for any loss or damage caused by any of the following even if they are Covered Causes of Loss: (a) Vandalism; (b) Sprinkler leakage due to freezing, unless you have protected the system against freezing; (c) Building glass breakage; (d) Water damage; (e) "Theft "; or (f) Attempted "theft ". (2) With respect to Covered Causes of Loss other than those listed in paragraphs (a), (b), (c), (d), (e) and (f) above, we will reduce the amount we would otherwise pay for the loss or damage by 15 %. 8. Pair, Sets or Parts For pairs or sets, we will either: (a) Repair or replace any part to restore the value and condition of the pair or set to that immediately before the covered loss or damage; or (b) Pay the difference between the value of the pair or set before and after the covered loss or damage. The Hanover Insurance Group- (c) Covered Property consisting of several parts when complete, we will only pay for the value of the lost or damaged part. F. Property General Conditions 1. Control of Property Any act or neglect of any person other than you beyond your direction or control will not affect this insurance. The breach of any condition of this Coverage Form at any one or more locations will not affect coverage at any location where, at the time of loss or damage, the breach of condition does not exist. 2. Mortgageholders a. The term mortgageholder includes trustee. b. We will pay for covered loss of or damage to buildings or structures to each mortgageholder shown in the Declarations in their order of precedence, as interests may appear. c. The mortgageholder has the right to receive loss payment even if the mortgageholder has started foreclosure or similar action on the building or structure. d. If we deny your claim because of your acts or because you have failed to comply with the terms of this Coverage Form, the mortgageholder will still have the right to receive loss payment if the mortgageholder: (1) Pays any premium due under this policy at our request if you have failed to do so; (2) Submits a signed, sworn proof of loss within 60 days after receiving notice from us of your failure to do so; and (3) Has notified us of any change in ownership, occupancy or substantial change in risk known to the mortgageholder. All of the terms of this Coverage Form will then apply directly to the mortgageholder. e. If we pay the mortgageholder for any loss or damage and deny payment to you because of your acts or because you have failed to comply with the terms of this Coverage Form: (1) The mortgageholder's rights under the mortgage will be transferred to us to the extent of the amount we pay; and (2) The mortgageholder's right to recover the full amount of the 391 -1003 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 51 of 81 mortgageholder's claim will not be impaired. At our option, we may pay to the mortgageholder the whole principal on the mortgage plus any accrued interest. In this event, your mortgage and note will be transferred to us and you will pay your remaining mortgage debt to us. f. If we cancel this policy, we will give written notice to the mortgageholder at least: (1) 10 days before the effective date of cancellation if we cancel for your nonpayment of premium; or (2) 30 days before the effective date of cancellation if we cancel for any other reason. g. If we elect not to renew this policy, we will give . written notice to the mortgageholder at least 10 days before the expiration date of this policy. 3. No Benefit to Bailee No person or organization, other than you, having custody of Covered Property will benefit from this insurance. 4. Policy Period, Coverage Territory Under SECTION I - PROPERTY: a. We cover loss or damage commencing: (1) During the policy period shown in the Declarations; and (2) Within the coverage territory or, with respect to property "in transit ", while it is between points in the coverage territory. b. The coverage territory is: (1) The United States of America (including its territories and possessions); (2) Puerto Rico; and (3) Canada. 5. Protective Devices a. If you received a discount to the property premium of this policy because of the existence of one of the following protective devices, you are required to maintain that protective device. Existence of an applicable protective devices credit can be found on the Declarations Page. b. Protective devices include Automatic Sprinkler Systems including related supervisory services, Automatic Fire Alarms and Central Station Security Alarms. c. We will not pay for loss or damage caused by a Covered Cause of Loss which a device is intended to protect against if you: (1) Knew of any suspension or impairment in any protective device and failed to notify us of that fact; or (2) Failed to maintain any protective device over which you had control in complete working order. If part of an Automatic Sprinkler System is shut off due to breakage, leakage, freezing conditions or opening of sprinkler heads, notification to us will not be necessary if you can restore full protection within 48 hours. 6. Increase in Hazard We will not pay for loss or damage when there has been a material increase in hazard that is within your knowledge or control. This condition applies to any and all portions of a claim. G. Property Definitions 1. "Accident" a. "Accident" means a fortuitous event that causes direct physical damage to "covered equipment ". The event must be one of the following: (1) Mechanical breakdown, including rupture or bursting caused by centrifugal force; (2) Artificially generated electrical current, including electric arcing, that disturbs electrical devices, appliances or wires; (3) Explosion of steam boilers, steam pipes, steam engines or steam turbines owned or leased by you, or operated under your control; (4) Loss or damage to steam boilers, steam pipes, steam engines or steam turbines caused by or resulting from any condition or event inside such equipment; or (5) Loss or damage to hot water boilers or other water heating equipment caused by or resulting from any condition or event inside such boilers or equipment. b. None of the following is an "accident ": (1) Defect, programming error, programming limitation, computer virus, malicious code, loss of data, loss of access, loss of use, loss of functionality or other condition within 391 -1003 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 52 of 81 or involving data or "media" of any kind; or (2) Misalignment, miscalibration, tripping off -line, or any condition which can be corrected by resetting, tightening, adjusting or cleaning, or by the performance of maintenance. However, if an "accident" results, we will pay for the resulting loss, damage or expense caused by that "accident ". 2. "Antique" or "antiques" means an object having value because its: a. Craftsmanship is in the style or fashion of former times; and b. Age is 100 years old or older. 3. "Cloud computing services" . means professional, on- demand, self- service data storage or data processing services provided through the Internet or over telecommunications lines. This includes services known as IaaS (infrastructure as a service), PaaS (platform as a service), Saas (software , as a service) and NaaS (network as a service). This includes business models know as public clouds, community clouds and hybrid clouds. "Cloud computing services" include private clouds if such services are owned and operated by a third party. 4. "Computer equipment" means: a. "Hardware" and related component parts. Component parts include but are not limited to modems, routers, printers, keyboards, monitors, and scanners; b. "Software "; and c. "Protection and control equipment ". "Computer equipment" does not mean "Computer equipment" used to operate production -type machinery or equipment. 5. "Computer hacking" means an unauthorized intrusion by an individual or group of individuals, whether employed by you or not, into "hardware" or "software ", a Web site, or a computer network and that results in but is not limited to: a. Deletion, destruction, generation, or modification of "software "; b. Alteration, contamination, corruption, degradation, or destruction of the integrity, quality or performance of "software "; c. Observation, scanning, or copying of ",electronic data ", "programs and applications ", and "proprietary programs "; HaThe nover Insurance Group- d. Damage, destruction, inadequacy, malfunction, degradation, or corruption of any "hardware" or "media" used with "hardware "'; or e. Denial of access to or denial of services from "hardware ", "software ", computer network, or Web site including related "software ". 6. "Computer program" means a set of related electronic instructions, which direct the operation and function of a computer or devices connected to it, which enable the computer or devices to receive, process, store or send "electronic data ". 7. "Computer Virus" means the introduction into "hardware ", "software ", computer network, or Web site of any malicious, self - replicating electronic data processing code or other code and that is intended to result in, but is not limited to: a. Deletion, destruction, generation, or modification of "software "; b. Alteration, contamination, corruption, degradation, or destruction of the integrity, quality, or performance of "software "; c. Damage, destruction, inadequacy, malfunction, degradation, or corruption of any "hardware" or "media" used with "hardware "; or d. Denial of access to or denial of services from "hardware ", "software ", computer network, or Web site including related "software ". 8. "Counterfeit money" means an imitation of "money" that is intended to deceive and to be taken as genuine. 9. "Covered equipment" means Covered Property which, during normal usage, operates under vacuum or pressure, other than the weight of its contents, or that generates, transmits or utilizes energy. "Covered equipment" may utilize conventional design and technology or new or newly commercialized design and technology. "Covered equipment" does not include: a. Structure, foundation, cabinet or compartment; b. Insulating or refractory material; c. Sewer piping, buried vessels or piping, or piping forming a part of a sprinkler or fire suppression system; d. Water piping other than boiler feedwater piping, boiler condensate return piping or 391 -1003 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 53 of 81 water piping forming a part of a incurred, regardless of when the act or refrigerating or air conditioning system; acts causing or contributing to such e. ' Dragline, excavation equipment or loss occurred, even though the exact construction equipment; amount or details may not be known. f. Vehicle, meaning any machine or b. "Discover" or "Discovered" also means apparatus that is used for transportation the time when you first receive notice or moves under its own power or any of an actual or potential claim in which it is alleged that you are liable to a equipment mounted on a vehicle. Vehicle third party under circumstances which, includes but is not limited to: car, truck, bus, trailer, train, aircraft, watercraft, if true, would constitute a loss under forklift, bulldozer, tractor or harvester. this policy. However, any property that is stationary, 15. "Electronic circuitry" means microelectronic permanently installed at a covered components, including but not limited to location and that receives electrical circuit boards, integrated circuits, computer power from an external power supplier chips and disk drives. will not be considered a vehicle; 16. "Electronic circuitry impairment" g. Equipment manufactured by you for sale a. "Electronic circuitry impairment" means or a fortuitous event involving "electronic h. Satellite, spacecraft or any equipment circuitry" within "covered equipment" mounted on a satellite or spacecraft. that causes the "covered equipment" to 10. "Data" means a representation of suddenly lose its ability to function as it information, knowledge, facts, concepts or had been functioning immediately instructions which are being processed or before such event. This definition is have been processed in "computer subject to the conditions specified in b., equipment ". c. and d. below. 11. "Data records" means files, documents and b. We shall determine that the reasonable information in an electronic format and that and appropriate remedy to restore such are stored within "electronic data ". "covered equipment's" ability to function is the replacement of one or 12. "Denial of service attack" means the more "electronic circuitry" components malicious direction or a high volume of of the "covered equipment." worthless inquiries to website or e-mail destinations, effectively denying or limiting C. The "covered equipment" must be legitimate access regardless of whether or owned or leased b , or operated y you, p not damage to "computer equipment" results. under your control. 13. "Dependent property" or "dependent d. None of the following is an "electronic properties" means the property owned by circuitry impairment ": others whom you depend upon to: (1) Any condition that can be a. Deliver materials or services to you or to reasonably remedied by: others for your account. But services do (a) Normal maintenance, including not mean water supply services, but not limited to replacing wastewater removal services, expendable parts, recharging communication supply services or power batteries or cleaning; supply services; (b) Rebooting, reloading or b. Accept your products or services; updating software or firmware; c. Manufacture products for delivery to your or customers under contract of sale; or (c) Providing necessary power or d. Attract customers to your business. supply. The "dependent property" must be (2) Any condition caused by or related located in the coverage territory of this to: Coverage Form. (a) Incompatibility of the "covered 14. "Discover" or "Discovered" means: equipment" with any software or equipment installed, a. The time when you first become aware of introduced or networked within facts which would cause a reasonable the prior 30 days; or person to assume that a loss of a type covered by this policy has been or will be (b) Insufficient size, capability or capacity of the "covered equipment." 391 -1003 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 54 of 81 (3) Exposure to adverse environmental conditions, including but not limited to change in temperature or humidity, unless such conditions result in an observable loss of functionality. Loss of warranty shall not be considered an observable loss of functionality. 17. "Electronic data" means files, documents, information and "programs and applications" in an electronic format and that are stored on "media ". 18. "Electronic Vandalism" means "computer hacking ", "computer virus" or a "denial of service attack ". "Electronic vandalism" does not include the "theft" of any property or services. 19. "Employee" or "employees" means: a. Any natural person or persons: (1) While in your service and for 30 days after termination of service; and (2) Who you compensate directly by salary, wages or commissions; and (3) Who you have the right to direct and control while performing services for you; b. Any natural person who is furnished temporarily to you: (1) To substitute for a permanent employee, as defined in paragraph a. above, who is on leave; or (2) To meet seasonal or short -term workload conditions; c. Any natural person or persons 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 b. above; d. Any natural person who is a former "employee ", partner, "manager ", director or trustee retained as a consultant while performing services for you; or e. Any natural person who is a guest student or intern pursuing studies or duties, excluding, however, any such person while having care and custody or property outside the described premises; f. Any natural person who is: Hanover Insurance Group- (2) A director or trustee of yours while that person is engaged in handling "funds" or "other property" of any "employee benefit plan "; "Employee" does not mean any agent, broker, factor, commission merchant, consignee, independent contractor or representative of the same general character not specified in paragraph 14. of this section. 20. "Financial institution" means: a. With regard to SECTION I - PROPERTY, A. Coverage, 5. Additional Coverage, s. Money and Securities: (1) A bank, savings bank, savings and loan association, trust company, credit union or similar depository institution; or (2) An insurance company. b. SECTION I - PROPERTY, A. Coverage, 5. Additional Coverage, hh. Computer and Funds Transfer Fraud: (1) A bank, savings bank, savings and loan association, trust company, credit union or similar depository institution; (2) An insurance company; or (3) A stock brokerage firm or investment company. c. Other than SECTION I - PROPERTY, A. Coverage, 5. Additional Coverages, s. Money and Securities and hh. Computer and Funds Transfer Fraud, any financial institution. 21. "Fine arts" means paintings, etchings, pictures, tapestries, rare art glass, art glass windows, valuable rugs, statuary, sculptures, "antique" jewelry, bric -a -brac, porcelains and similar property of rarity, historical value or artistic merit. 22. "Finished stock" means stock you have manufactured. "Finished stock" also includes whiskey and alcoholic products being aged. "Finished stock" does not include "stock" you have manufactured that is held for sale on the premises of any retail outlet. 23. "Flood" means a general and temporary condition of partial or complete inundation of normally dry land areas due to: (1) A trustee, officer, employee, a. Surface water or waves, tides, tidal administrator or manager, except waves, tsunami, overflow of any body an administrator or manager who is of water or their spray, all whether an independent contractor, of any driven by wind or not (including "employee benefit plan "; and storm surge); 391 -1003 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 55 of 81 b. The unusual or rapid accumulation of runoff of surface waters from any source; c. Mudslides or mudflows which are caused by "flood" water. A mudslide or mudflow involves a river of liquid and flowing mud on the surface of normally dry land areas as when earth is carried by a current of water and deposited along the path of the current. d. The release of water impounded by a dam, levee, dike, seawall or "flood" control device, whether driven by wind or not (including storm surge). When a "flood" is a continuous or protracted event it will constitute a single "flood" occurrence. 24. "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. 25. "Fraudulent instruction" means: a. An electronic, telegraphic, cable, teletype, tele facsimile or telephone instruction which purports to have been transmitted by you, but which was in fact fraudulently transmitted by someone else without your knowledge or consent; b. A written instruction (other than those described in SECTION I - PROPERTY, A. Coverage, 5. Additional Coverages, k. Forgery or Alteration) issued by you, which was forged or altered by someone other than you without your knowledge or consent or which purports to have been issued by you, but was in fact fraudulently issued without your knowledge or consent. 26. "Funds" means "money" and "securities ". 27. "Fungi" means any type or form of fungus, including mold or mildew, and any mycotoxins, spores, scents or by- products produced or released by "fungi ". 28. "Hardware" means a network of electronic machine components (microprocessors) capable of accepting instructions and information, processing the information according the instructions, and producing desired results. "Hardware" includes but is not limited to: a. Mainframe and mid -range computers and servers; b. Personal computers and workstations; c. Portable electronic devices. Portable electronic devices include laptops, tablets, e- readers, smartphones or other lightweight, hand -held or wearable devices capable of storing, retrieving and processing data; and d. Peripheral data processing equipment, including but not limited to printers, keyboards, monitors, and modems. "Hardware" does not mean electronic items that are not similar to the items listed in a., b., c. and A. above. "Hardware" does not include: e. Diagnostic equipment; f. Electronic items that contain a computer to perform functions other than "hardware "; and g. Peripheral data processing equipment valued more than the "hardware" itself. 29. "Hazardous substance" means any substance that is hazardous to health or has been declared to be hazardous to health by a governmental agency. 30. "In transit" means in the course of shipment from or to the premises shown in the Declarations. It includes such shipments while temporarily stopped or delayed, incidental to the delivery. 31. "Manager" or "managers" means a person or persons serving in a directorial capacity for a limited liability company (LLC). 32. "Media" means an instrument that is used with "hardware" and on which "electronic data ", "programs and applications ", and "proprietary programs" can be recorded or stored. "Media" includes, but is not limited to, films, tapes, cards, discs, drums, cartridges, cells, DVDs, CD -ROMs and other portable data devices. 33. "Member" or "Members" means an owner of a limited liability company represented by its membership interest, who also may serve as a "manager ". 34. "Messenger" means you, or a relative of yours, or any of your partners or "members ", or any "employee" while having care and custody of property away from the described premises. 35. "Money" means: a. Currency, coins and bank notes in current use and having a face value; b. Traveler's checks and money orders held for sale to the public; and c. In addition, includes: 391 -1003 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 56 of 81 HaThe nover Insurance Group- (1) For the purposes of SECTION I - (3) FICA payments you pay; PROPERTY, A. Coverage, 5. (4) Union dues you pay; and Additional Coverages, p. Employee Theft including ERISA Compliance (5) Workers' Compensation premiums. and k. Forgery or Alteration, 41. "Period of Restoration" ,deposits in your ,account at any financial institution"; and a. Means the period -of time that: (2) For the purposes of SECTION I - (1) Begins: PROPERTY, A. Coverage, 5. Additional (a) After the number of hours Coverage hh. Computer and . Funds shown as the Business Income Transfer Fraud, deposits in your Waiting Period in the account at a "financial institution" as Declarations after the time of defined in SECTION I - PROPERTY, G. direct physical loss or damage Property Definitions, paragraph 19.b.. for Business Income Coverage; 36. "One equipment breakdown" means: If an or initial "accident" or "electronic circuitry (b) Immediately after the time of impairment" causes other "accidents" or direct physical loss or damage "electronic circuitry impairments," all will for Extra Expense Coverage; be considered "one equipment breakdown." caused by or resulting from any All accidents or electronic circuitry Covered Cause of Loss at the impairments" that are the result of the described premises; and same "accident" or "electronic circuitry impairment" will be considered "one (2) Ends on the earlier of: equipment breakdown." (a) The date when the property at 37. "Operations" means your business the described premises should activities occurring at the described be repaired, rebuilt or replaced premises. (to a condition permitting occupancy) with reasonable 38. "Other property" means tangible property speed and similar quality; or other than "money" and "securities" that has intrinsic value. "Other property" does (b ) The date when business is not include computer programs, resumed at a new permanent "electronic data" or any property location; or specifically excluded under this Coverage (c) Exhaustion of the number of Form. consecutive months as shown 39. "Payment processing device" means any on the Policy Declarations electronic device used to process credit, Page. debit or charge card transactions, b. Does not include any increased period including but not limited to, digital pen pad required due to the enforcement of any devices, PIN pad devices, Automatic Teller ordinance or law that: Machines (ATMs), credit card processing machines. (1) Regulates the construction, use or repair, or requires the tearing 40. "Payroll expense ": down of any property; or a. Means payroll expenses for all your (2) Requires any insured or others to "employees" except: test for, monitor, clean up, remove, (1) Officers; contain, treat, detoxify or (2) Executive; neutralize, or in any way respond to or assess the effects of (3) Department Managers; "pollutants ". (4) "Employees" under contract; and The expiration date of this policy will (5) Additional Exemptions shown in not cut short the "period of the Declarations as: restoration". (a) Job classifications; or 42. "Perishable goods" - means personal property: (b) "Employees ". a. Maintained under controlled b. Includes: temperature or humidity conditions for (1) Payroll; preservation; and (2) Employee Benefits, if directly b. Susceptible to loss or damage if the related to payroll; controlled temperature or humidity conditions change. 391 -1003 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 57 of 81 43. "Pollutants" means - any solid, liquid, a. Tokens, tickets, revenue and other stamps gaseous or thermal irritant or contaminant, (whether represented by actual stamps or including smoke, vapor, soot, fumes, acids, unused value in a meter) in current use; alkalis, chemicals and waste. Waste and includes materials to be recycled, b. Evidences of debt issued in connection reconditioned or reclaimed. with credit or charge cards, which cards 44. "Programs and applications" means are not issued by you; operating programs and applications that but does not include "money ". you purchase and that are: a. Stored on "media "; or 49. "Software" means; b. Pre - installed and stored in "hardware ". a. "Media "; Applications include, but are not limited to, b. "Electronic Data "; programs for word processing, c. "Programs and applications "; and spreadsheet calculations, and graphic d. "Proprietary programs ". design. 50. "Specified Causes of Loss" means the 45. "Proprietary programs" means proprietary following: operating programs and applications that you developed or that you had developed Fire; lightning; explosion, windstorm or hail; specifically for use in your "operations" smoke; aircraft or vehicles; riot or civil and that are: commotion; vandalism; leakage from fire extinguishing equipment; sinkhole collapse; a. Stored on "media "; or volcanic action; falling objects; weight of snow, b. Installed and stored in "hardware ". ice or sleet; water damage. 46. "Protection and control equipment" means: a. Sinkhole collapse means the sudden a. Air conditioning or other cooling sinking or collapse of land into underground empty spaces created by the equipment used exclusively in the operation of the "hardware "; action of water on limestone or dolomite. This cause of loss does not include: b. Fire protection equipment used for the "hardware ", (1) The cost of filling sinkholes; or protection of the including automatic and manual fire suppression (2) Sinking or collapse of land into equipment and smoke and heat man -made underground cavities. detectors; and b. Falling objects does not include loss of or c. Uninterruptible power supply system, damage to: line conditioner, and voltage regulator. (1) Personal property in the open; or 47. "Rental Value" means Business Income (2) The interior of a building or structure, that consists of: or property inside a building or a. New Income (Net Profit or Loss before structure, unless the roof or an outside income taxes) that would have been wall of the building or structure is first earned or incurred as rental income damaged by a falling object. from tenant occupancy of the premises c. Water damage means described in the Declarations as furnished and equipped by you, (1) Accidental discharge or leakage of including fair rental value of any water or steam as the direct result of portion of the described premises the breaking apart or cracking of any which is occupied by you; and part of a system or appliance (other b. Continuing normal operating expenses than a sump system including its related equipment and parts) incurred in connection with that containing water or steam; and premises, including: (1) Payroll; and (2) water or Accidental wa e�rboraneemater al as the (2) The amount of charges which are direct result of the breaking apart or the legal obligation of the tenant(s) cracking of a water or sewer pipe that but would otherwise be your is located off the described premises obligations. and is part of a municipal potable 48. "Securities" means negotiable and water supply system or municipal non - negotiable instruments or contracts representing either "money" or "other property" and includes: 391 -1003 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 58 of 81 sanitary sewer system, if the breakage or cracking is caused by wear or tear. But water damage does not include loss or damage otherwise excluded in SECTION I - PROPERTY, B. Exclusions, paragraph 1. g. Water.. Therefore, for example, there is no coverage in the situation in which discharge or leakage of water results from breaking apart of cracking of a pipe which was caused by or related to weather - induced "flood" water, even if wear and tear contributed to the breakage or cracking. As another example, and also in accordance with the terms of the Water Exclusion, there is no coverage for loss or damage caused by or related to weather - induced "flood" water which follows or is exacerbated by pipe breakage or cracking attributable to wear and tear. To the extent that accidental discharge or leakage of water falls within the criteria set forth in paragraphs (1) or (2) above of this definition of "specified causes of loss ", such water is not subject to the provisions of SECTION I - PROPERTY, B. Exclusions, paragraph 1., g. Water, which preclude coverage for surface water or water under the ground surface. 51. "Stock" means merchandise held in storage or for sale, raw materials and in process or finished goods, including supplies used in their packing or shipping. 52. "Suspension" means: a. The partial slowdown or complete cessation of your business activities; or b. Part or all of the described premises is rendered untenantable, if coverage ,for Business Income applies. 53. "Telephonic services" means use of your: a. Telephone services; b. Telephone credit cards; or c. Telephone access cards. 54. "Theft" means the unlawful taking of property to the deprivation of the Insured. 55. "Transfer account" means an account maintained by you at a financial institution from which you can initiate the transfer, payment or delivery of "money" and "securities" by means of: a. Electronic, telegraphic, cable, teletype, telefacsimile or telephone instructions communicated directly through an electronic funds transfer system; or HaThe nover Insurance Group- b. Written instructions (other than those described in SECTION I - PROPERTY, A. Coverage, 5. Additional Coverages, k. Forgery or Alteration) establishing the conditions under which such transfers are to be initiated by such financial institution through an electronic funds transfer system. 56. "Valuable papers and records" means: a. Inscribed, printed or written: (1) Documents; (2) Manuscripts; and (3) Records; including abstracts, books, deeds, drawings, films, maps or mortgages; b. If you are a Printer, Publisher or Graphic Artist by trade, "valuable papers and records" means negatives, positives, artwork, separations, plates, dies, molds, forms, stock manuscripts and other similar property usual to the graphic arts, printing or publishing industry, including those which exist on electronic or magnetic "media ", other than prepackaged software programs. But "valuable papers and records" does not mean "money" or "securities ". SECTION II - LIABILITY A. Coverages 1. Business Liability a. We will pay those sums the insured becomes legally obligated to pay as damages because of "bodily injury ", "property damage" or "personal and advertising injury" to which this insurance applies. We will have the right and duty to defend the insured against any "suit" seeking those damages. However, we will have no duty to defend the insured against any "suit" seeking damages for "bodily injury", "property damage" or "personal and advertising injury ", to which this insurance does not apply. We may, at our discretion, investigate any "occurrence" or any offense and settle any claim or "suit" that may result. But: (1) The amount we will pay for damages is limited as described in SECTION II - LIABILITY, D - Liability and Medical Expenses Limits of Insurance; and (2) Our right and duty to defend end when we have used up the applicable Limit of Insurance in the payment of 391 -1003 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 59 of 81 judgments, settlements or medical expenses. No other obligation or liability to pay sums or perform acts or services is covered unless explicitly provided for under f. Coverage Extension - Supplementary Payments. b. This insurance applies: (1) To "bodily injury" and "property damage" only if: (a) The "bodily injury" or "property damage" is caused by an "occurrence" that takes place in the "coverage territory "; (b) The "bodily injury" or "property damage" occurs during the policy period; and (c) Prior to the policy period, no insured listed under C. Who Is An Insured, paragraph 1. and no "employee" authorized by you to give or receive notice of an "occurrence" or claim knew that the "bodily injury" or "property damage" had occurred, in whole or in part. If such a listed insured or authorized "employee" knew, prior to the policy period, that the "bodily injury" or "property damage" occurred, then any continuation, change or resumption of such "bodily injury" or "property damage" during or after the policy period will be deemed to have been known prior to the policy period. (2) To "personal and advertising injury" caused by an offense arising out of your business, but only if the offense was committed in the "coverage territory" during the policy period. c. "Bodily injury" or "property damage" which occurs during the policy period and was not, prior to the policy period, known to have occurred by any insured listed under C. Who Is An Insured, paragraph 1. or any "employee" authorized by you to give or receive notice of an "occurrence" or claim, includes any continuation, change or resumption of "bodily injury" or "property damage" after the end of the policy period. d. "Bodily injury" or "property damage" will be deemed to have been known to have occurred at the earliest time when any insured listed under C. Who Is An Insured, Paragraph 1. or any "employee" authorized by you to give or receive notice of an "occurrence" or claim: (1) Reports all or any part of the "bodily injury" or "property damage" to us or any other insurer; (2) Receives a\ written or verbal demand or claim for damages because of the "bodily injury" or "property damage "; or (3) Becomes aware by any other means that "bodily injury" or "property damage" has occurred or has begun to occur. e. Damages because of "bodily injury" include damages claimed by any person or organization for care, loss of services or death resulting at any time from the "bodily injury ". f. Coverage Extension - Supplementary Payments (1) We will pay, with respect to any claim we investigate or settle, or any "suit" against an insured we defend: (a) All expenses we incur. (b) Up to $2500 for cost of bail bonds required because of accidents or traffic law violations arising out of the use of any vehicle to which Business Liability Coverage for "bodily injury" applies. We do not have to furnish these bonds. ° (c) The cost of bonds to release attachments, but only for bond amounts within our Limit of Insurance. We do not have to furnish these bonds. (d) All reasonable expenses incurred by the insured at our request to assist us in the investigation or defense of the claim or "suit ", including actual loss of earnings up to $500 a day because of time off, from work. (e) All court costs taxed against the insured in the "suit ". However, these payments do not include attorneys' fees or attorneys' expenses taxed against the insured. (f) Prejudgment interest awarded against the insured on that part of the judgment we pay. If we make an offer to pay the Limit of Insurance, we will not pay any 391 -1003 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 60 of 81 The Hanover Insurance Group.. prejudgment interest based on legal papers received in that period of time after the connection with the offer. "suit "; (g) All interest on the full amount 3) Notify any other insurer of any judgment that accrues whose coverage is after entry of the judgment and available to the before we have paid, offered indemnitee; and to pay, or deposited in court 4) Cooperate with us with the part of the judgment that is respect to coordinating within our Limit of Insurance. other applicable These payments will not reduce insurance available to the Limit of Insurance described in the indemnitee; and SECTION II - LIABILITY, D. Liability i Provides us with written (i ) and Medical Expenses Limits of authorization to: Insurance. (2) If we defend an insured against a 1) Obtain records and other information related "suit" and an indemnitee of the to the "suit "; and insured is also named as a party to the "suit ", we will defend that 2) Conduct and control the indemnitee if all of the following defense of the conditions are met: indemnitee in such (a) The "suit" against the suit". indemnitee seeks damages for So long as the above conditions which the insured has are met, attorneys' fees assumed the liability of the incurred by us in the defense of indemnitee in a contract or that indemnitee, necessary agreement that is an "insured litigation expenses incurred by contract "; us and necessary litigation (b) This insurance applies to such expenses incurred by the indemnitee at our request will liability assumed by the be paid as Supplementary insured; Payments. Notwithstanding the (c) The obligation to defend, or provisions of SECTION II - the cost of the defense of, that LIABILITY, B. Exclusions, 1. indemnitee, has also been Applicable to Business Liability assumed by the insured in the Coverage, b. Contractual same "insured contract "; Liability, paragraph (2), such (d) The allegations in the "suit" payments will not be deemed to and the information we know be damages for "bodily injury" about the "occurrence" are and "property damage" and will such that no conflict appears not reduce the limits of to exist between the interests insurance. of the insured and the Our obligation to defend an interests of the indemnitee; insured's indemnitee and to pay for (e) The indemnitee and the attorneys' fees and necessary insured ask us to conduct and litigation expenses as control the defense of that Supplementary Payments ends indemnitee against such "suit" when: and agree that we can assign (g) We have used up the applicable the same counsel to defend Limit of Insurance in the the insured and the payment of judgments or indemnitee; and settlements; or (f) The indemnitee: (h) The conditions set forth above, (i) Agrees in writing to: or the terms of the agreement described in Paragraph (2)(f) 1) Cooperate with us in above are no longer met. the investigation, settlement or defense 2. Medical Ex P Expenses of the "suit "; a. We will pay medical expenses as 2) Immediately send us described below for "bodily injury" copies of any caused by an accident: demands, notices, (1) On premises you own or rent; summonses or 391 -1003 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 61 of 81 (2) On ways next to premises you execution of the contract or agreement. Solely for the own or rent; or purposes of liability assumed in (3) Because of your operations; an "insured contract ", reasonable provided that: attorney fees and necessary (a) The accident takes place in "coverage litigation expenses incurred by or for a party other than an insured the territory" and are deemed to be damages during the policy period; „ because of bodily injury or (b) The expenses are incurred "property damage ", provided: and reported to us within one (a) Liability to such party for, or year of the date of the for the cost of, that party's accident; and defense has also been (c) The injured person submits to assumed in the same examination, at our expense, "insured contract "; and by physicians of our choice as (b) Such attorney fees and often as we reasonably litigation expenses are for require. defense of that party against b. We will make these payments a civil or alternative dispute regardless of fault. These payments resolution proceeding in will not exceed the applicable Limits which damages to which this of Insurance as described in D. insurance applies are Liability and Medical Expenses Limits alleged. of Insurance. c. Liquor Liability c. We will pay reasonable expenses for: "Bodily injury" or "property damage" (1) First aid administered at the time for which any insured may be held of an accident; liable by reason of: (2) Necessary medical, surgical, x -ray (1) Causing or contributing to the and dental services, including intoxication of any person; prosthetic devices; and (2) The furnishing of alcoholic (3) Necessary ambulance, hospital, beverages to a person under the professional nursing and funeral legal drinking age or under the services. influence of alcohol; or B. Exclusions (3) Any statute, ordinance or 1. Applicable To Business Liability Coverage regulation relating to the sale, gift, distribution or use of This insurance does not apply to: alcoholic beverages. a. Expected or Intended Injury This exclusion applies even if the "Bodily injury” or "property damage" claims against any insured allege expected or intended from the negligence or other wrongdoing in: standpoint of the insured. This (4) The supervision, hiring, exclusion does not apply to "bodily employment, training or injury resulting from the use of monitoring of others by that reasonable force to protect persons or insured; or property. (5) Providing or failing to provide b. Contractual Liability transportation with respect to any "Bodily injury" or "property damage" person that may be under the for which the insured is obligated to influence of alcohol; pay damages by reason of the if the "occurrence" which caused the assumption of liability in a contract or "bodily injury" or "property damage ", agreement. This exclusion does not involved that which is described in apply to liability for damages: paragraphs (1), (2) or (3) above. (1) That the insured would have in the However, this exclusion applies only absence of the contract or if you are in the business of agreement; or manufacturing, distributing, selling, (2) Assumed in a contract or serving or furnishing alcoholic agreement that is an "insured beverages. contract ", provided the "bodily "property For the purpose of this exclusion, injury" or damage" occurs subsequent to the permitting a person to bring alcoholic beverages on your premises for consumption on your premises, whether or 391 -1003 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 62 of 81 not a fee is charged or a license is required for such activity, is not by itself considered the business of selling, serving or furnishing alcoholic beverages. d. Workers' Compensation and Similar Laws Any obligation of the insured under a workers' compensation, disability benefits or unemployment compensation law or any similar local, state, federal or foreign law or regulation. e. Employer's Liability "Bodily Injury" to: (1) An "employee" of the insured arising out of and in the course of: (a) Employment by the insured; or (b) Performing duties related to the conduct of the insured's business; or (2) The spouse, child, parent, brother or sister of that "employee" as a consequence of paragraph (1) above. This exclusion applies: (3) Whether the insured may be liable as an employer or in any other capacity; and (4) To any obligation to share damages with or repay someone else who must pay damages because of the injury. This exclusion does not apply to liability assumed by the insured under an "insured contract ". If. Pollution (1) "Bodily injury" or "property damage" arising out of the actual, alleged or threatened discharge, dispersal, seepage, migration, release or escape of "pollutants ": (a) At or from any premises, site or location, which is or was at any time owned or occupied by, or rented or loaned to, any insured. However, this subparagraph does not apply to: (i) "Bodily injury" if sustained within a building and caused by smoke, fumes, vapor or soot produced by or originating from equipment that is used to heat, cool or dehumidify the building, or equipment that is used to heat water for personal use, by the HaThe nover Insurance Group- building's occupants or their guests; (ii) "Bodily injury" or "property damage" for which you may be held liable, if you are a contractor and the owner or lessee of such premises, site or location has been added to your policy as an additional insured with respect to your ongoing operations performed for that additional insured at that premises, site or location and such premises, site or location is not and never was owned or occupied by, or rented or loaned to, any insured, other than that additional insured; or (iii) "Bodily injury" or "property damage" arising out of heat, smoke or fumes from a "hostile fire "; (b) At or from any premises, site or location which is or was at any time used by or for any insured or others for the handling, storage, disposal, processing or treatment of waste; (c) Which are or were at any time transported, handled, stored, treated, disposed of, or processed as waste by or for: (i) Any insured; or (ii) Any person or organization for whom you may be legally responsible; or (d) At or from any premises, site or location on which any insured or any contractors or subcontractors working directly or indirectly on any insured's behalf are performing operations if the "pollutants" are brought on or to the premises, site or location in connection with such operations by such insured, contractor or subcontractor. However, this subparagraph does not apply to: (i) "Bodily injury" or "property damage" arising out of the escape of fuels, lubricants or other operating fluids which are needed to perform the normal electrical, hydraulic or mechanical functions 391 -1003 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 63 of 81 necessary for the operation of "mobile equipment" or its parts, if such fuels, lubricants or other operating fluids escape from a vehicle part designed to hold, store or receive them. This exception does not apply if the "bodily injury" or "property damage" arises out of the intentional discharge, dispersal or release of the fuels, lubricants or other operating fluids, or if such fuels, lubricants or other operating fluids are brought on or to the premises, site or location with the intent that they be discharged, dispersed or released as part of the operations being performed by such insured, contractor or subcontractor; (ii) "Bodily injury" or "property damage" sustained within a building and caused by the release of gases, fumes or vapors from materials brought into that building in connection with operations being performed by you or on your behalf by a contractor or subcontractor; or (iii) "Bodily injury" or "property damage" arising out of heat, smoke or fumes from a "hostile fire ". (e) At or from any premises, site or location on which any insured or any contractors or subcontractors working directly or indirectly on any insured's behalf are performing operations if the operations are to test for, monitor, clean up, remove, contain, treat, detoxify or neutralize, or in any way respond to, or assess the effects of, "pollutants ". (2) Any loss, cost or expense arising out of any: (a) Request, demand, order or statutory or regulatory requirement that any insured or others test for, monitor, clean up, remove, contain, treat, detoxify or neutralize, or in any way respond to, or assess the effects of, "pollutants "; or (b) Claim or "suit" by or on behalf of a governmental authority for damages because of testing for, monitoring, cleaning up, removing, containing, treating, detoxifying or neutralizing, or in any way responding to, or assessing the effects of, "pollutants ". However, this paragraph does not apply to liability for damages because of "property damage" that the insured would have in the absence of such request, demand, order or statutory or regulatory requirement or such claim or "suit" by or on behalf of a governmental authority. g. Aircraft, Auto or Watercraft (1) Unmanned Aircraft "Bodily injury ", "property damage" or "personal and advertising injury" arising out of the ownership, maintenance, use or entrustment to others of any aircraft that is an "unmanned aircraft ". Use includes operation and "loading and unloading ". This paragraph g. (1) 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 the ownership, maintenance, use or entrustment to others of any aircraft that is an "unmanned aircraft ". This paragraph g. (1) does not apply to: (a) The use of another's advertising idea in your "advertisement "; or (b) Infringing upon another's copyright, trade dress or slogan in your "advertisement ". (2) Aircraft (Other Than Unmanned Aircraft), Auto or Watercraft "Bodily injury" or "property damage" arising out of the ownership, maintenance, use or entrustment to others of any - aircraft (other than "unmanned aircraft "), "auto" or watercraft owned or operated by or rented or loaned to any insured. Use includes operation and "loading or unloading ". 391 -1003 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 64 of 81 HaThe nover Insurance Group- This paragraph g. (2) applies even chassis and used to if the claims against any insured raise or lower allege negligence or other workers; and wrongdoing in the supervision, hiring, employment, training or 2) Air compressors, monitoring of others by that pumps and generators, insured, if the occurrence which "bodily including spraying, welding, building caused the injury" or "property cleaning, geophysical damage" or the offense "personal exploration, lighting which caused the and and well - servicing advertising injury" involved the equipment; or ownership, maintenance, use or entrustment to others of any (f) An aircraft (other than aircraft (other than "unmanned "unmanned aircraft ") that is: aircraft "), "auto" or watercraft that (i) Chartered by, loaned to, or is owned or operated by or rented hired by you with a paid or loaned to any insured. crew; and This paragraph g. (2) does not (ii) Not owned by any insured. apply to: h. Mobile Equipment (a) A watercraft while ashore on premises you own or rent; "Bodily injury" or "property damage" arising out of: (b) A watercraft you do not own that is: (1) The transportation of "mobile equipment" by an "auto" owned or i Less than 51 feet Ion and () g� operated by or rented or loaned to (ii) Not being used to carry any insured; or persons or property for a (2) The use of "mobile equipment" in, charge; or while in practice for, or while (c) Parking an "auto" on', or on being prepared for, any the ways next to, premises prearranged racing, speed, you own or rent, provided the demolition or stunting activity. "auto" is not owned by or i. War rented or loaned to you or the insured "Bodily injury", "property damage" or "personal and advertising injury ", d Liability assumed under an () Y Y however caused, arising, directly or insured contract for the indirectly, out of: ownership, maintenance or use of aircraft (other than (1) War, including undeclared or civil "unmanned- aircraft ") or war; watercraft; or (2) Warlike action by a military force, (e) "Bodily injury" or "property including action in hindering or damage" arising out of: defending against an actual or (i) The operation of expected attack, by any government, sovereign or other machinery or equipment authority using military personnel that is attached to, or part or other agents; or of, a land vehicle that would qualify under the 3 Insurrection, rebellion, revolution, () definition of mobile usurped , or action taken b ower, p p y equipment" if it were not government authority in hindering subject to a compulsory or or defending against any of these. financial responsibility law j. Professional Services or other motor vehicle insurance or motor vehicle "Bodily injury ", "property damage ", registration law where it is "personal and advertising injury" licensed or principally caused by the rendering of or failure garaged; or to render any professional service, advice or instruction: (ii) The operation of any of the (1) By you; or following machinery or equipment: (2) On your behalf; or 1) Cherry pickers and (3) From whom any of you assumed similar devices liability by reason of a contract or mounted on agreement, automobile or truck 391 -1003 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 65 of 81 regardless of whether any such service, advice or instruction is ordinary to any insured's profession. Professional services include but are not limited to: (4) Legal, accounting or advertising services, notary, title abstract, tax preparation, real estate, stockbroker, publishing, architects or insurance services; (5) Preparing, approving, or failing to prepare or approve maps, drawings, opinions, reports, surveys, change orders, designs or specifications; (6) Supervisory, inspection or engineering services; (7) Medical, surgical, dental, x -ray or nursing services treatment, advice or instruction; (8) Any health or therapeutic service treatment, advice or instruction; (9) Any service, treatment, advice or instruction for the purpose of appearance or skin enhancement, hair removal or replacement or personal grooming, including use or exposure to any sun lamp, tanning booth or other similar appliance; (10)Optometry or optical or hearing aid services including the prescribing, preparation, fitting, demonstration or distribution of ophthalmic lenses and similar products or hearing aid devices; (11)Body piercing services; (12)Services in the practice of pharmacy; (13)Management, Human Resource, Testing, Media or Public Relations consulting services. This exclusion applies even if a claim alleges negligence or other wrongdoing in the supervision, hiring, employment, training or monitoring of others by an insured, if the "occurrence" which caused the "bodily injury" or "property damage ", or the offense which caused the "personal and advertising injury ", involved the rendering of or failure to render any professional service. k. Damage to Property "Property damage" to: (1) Property you own, rent or occupy, including any costs or expenses incurred by you, or any other person, organization or entity, for repair, replacement, enhancement, restoration or maintenance of such property for any reason, including prevention of injury to a person or damage to another's property; (2) Premises you sell, give away or abandon, if the "property damage" arises out of any part of those premises; (3) Property loaned to you; (4) Personal property in the care, custody or control of the insured; (5) That particular part of real property on which you or any contractor or subcontractor working directly or indirectly on your behalf is performing operations, if the "property damage" arises out of those operations; or (6) That particular part of any property that must be restored, repaired or replaced because "your work" was incorrectly performed on it. Paragraphs (1), (3) and (4) of this exclusion do not apply to "property damage" (other than damage by fire) to premises, including the contents of such premises, rented to you for a period of 7 or fewer consecutive days. A separate Limit of Insurance applies to Damage to Premises Rented to You as described in SECTION II - LIABILITY, D. Liability and Medical Expenses Limit Of Insurance. Paragraph (2) of this exclusion does not apply if the premises are "your work" and were never occupied, rented or held for rental by you. Paragraphs (3), (4), (5) and (6) of this exclusion do not apply to liability assumed under a sidetrack agreement. Paragraph (6) of this exclusion does not apply to "property damage" included in the "products - completed operations hazard ". Damage to Your Product "Property damage" to "your product" arising out of it or any part of it. m. Damage to Your Work "Property damage" to "your work" arising out of it or any part of it and included in the "products - completed operations hazard ". This exclusion does not apply if the damaged work or the work out of which 391 -1003 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 66 of 81 the damage arises was performed on your behalf by a subcontractor. n: Damage to Impaired Property or Property Not Physically Injured "Property damage" to "impaired property" or property that has not been physically injured, arising out of: (1) A defect, deficiency, inadequacy or dangerous condition in "your product" or "your work "; or (2) A delay or failure by you or anyone acting on your behalf to perform a contract or agreement in accordance with its terms. This exclusion does not apply to the loss of use of other property arising out of sudden and accidental physical injury to "your product" or "your work" after it has, been put to its intended use. o. Recall of Products, Work or Impaired Property Damages claimed for any loss, cost or expense incurred by you or others for the loss of use, withdrawal, recall, inspection, repair, replacement, adjustment, removal or disposal of: (1) "Your product "; (2) "Your work "; or (3) "Impaired property "; if such product, work or property is withdrawn or recalled from the market or from use by any person or organization because of a known or suspected defect, ' deficiency, inadequacy or dangerous condition in it. p. Aircraft Products, Grounding and Testing (1) "Aircraft products " or reliance upon any representation or warranty made with such product; (2) The "grounding" of any aircraft; or (3) The "testing" of any aircraft. For purposes of this Exclusion, the following definitions apply: (4) "Aircraft Products" means: (a) Aircraft, including but not limited to missiles, spacecraft, or any other aircraft goods or products you manufacture, sell, handle or distribute; ne Hanover Insurance Group- (c) Any product provided by the insured and installed or used in connection with any aircraft; (d) Any tooling used in respect to any aircraft; (e) Training and navigational aids, instructions, manuals, blueprints, engineering or other data in connection with any aircraft; (f) Any advice, service or labor supplied with any aircraft; or (g) Services you or others trading under your name provide or recommend for use in the manufacture, repair, operation, maintenance or use of any aircraft. (5) "Grounding" means the withdrawal of one or more aircraft from flight operations or the imposition of speed, passenger or load restrictions on such aircraft, due to the existence of or alleged or suspected existence of any defect, fault or condition: (a) In such aircraft or any part sold, handled or distributed by you or that is manufactured, assembled or processed by any other person or organization according to your specifications, plans, suggestions, orders or drawings; or (b) With tools, machinery or other equipment furnished to such persons or organizations by you; whether such withdrawn aircraft are owned or operated by the same or different persons or organizations. "Grounding" shall be deemed to commence on the date of an "occurrence" which discloses the necessity of "grounding" or on the date an aircraft is first withdrawn from service because of such condition, whichever comes first. (6) "Testing" means examination, observation, evaluation or measuring of the performance of "aircraft products ", while either in the air or on the ground. (b) Aircraft and any ground q. Distribution of Material in Violation of support or control equipment Statutes used in connection therewith; 391 -1003 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 67 of 81 "Bodily injury", "property damage" or "personal and advertising injury" arising directly or indirectly out of any action or omission that violates or is alleged to violate: (1) The Telephone Consumer Protection Act (TCPA), including any amendment of or addition to such law; or (2) The CAN -SPAM Act of 2003, including any amendment of or addition to such law; or (3) The Fair Credit Reporting Act (FCRA), and any amendment of or addition to such law, including the Fair and Accurate Credit Transaction Act (FACTA); or (4) Any other laws, statutes ordinances or regulations, that address, prohibit, or limit the printing, dissemination, disposal, collecting, recording, sending, transmitting, communicating or distribution of material or information. r. Access Or Disclosure Of Confidential Or Personal Information And Data - related Liability Damages arising out of: (1) Any access to or disclosure of any person's or organization's confidential or personal information, including patents, trade secrets, processing methods, customer lists, financial information, credit card information, health information or any other type of nonpublic information; or (2) The loss of, loss of use of, damage to, corruption of, inability to access, or inability to manipulate electronic data. This exclusion applies even if damages are claimed for notification costs, credit monitoring expenses, forensic expenses, public relations expenses or any other loss, cost or expense incurred by you or others arising out of that which is described in paragraphs (1) or (2) above. However, unless paragraph (1) above applies, this exclusion does not apply to damages because of "bodily injury". As used in this exclusion, 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. Exclusions c., d., e., g., h., and k., I., m., n. and o. above do not apply to damage to premises while rented to you or temporarily occupied by you with permission of the owner. A separate Damage to Premises Rented to You Limit of Insurance applies to this coverage as described in SECTION II - LIABILITY, D. Liability and Medical Expenses Limits of Insurance. 2. Additional Exclusions Applicable Only to "Personal and Advertising Injury" This insurance does not apply to: a. Knowing Violation of Rights of Another "Personal and advertising injury" caused by or at the direction of the insured with the knowledge that the act would violate the rights of another and would inflict "personal and advertising injury ". b. Material Published With Knowledge of Falsity "Personal and advertising injury" arising out of oral or written publication, in any manner, of material, if done by or at the direction of the insured with knowledge of its falsity. c. Material Published Prior to Policy Period "Personal and advertising injury" arising out of oral or written publication, in any manner, of material whose first publication took place before the beginning of the policy period. d. Criminal Acts "Personal and advertising injury" arising out of a criminal act committed by or at the direction of the insured. e. Contractual Liability "Personal and advertising injury" for which the insured has assumed liability in a contract or agreement. This exclusion does not apply to liability for damages that the insured would have in the absence of the contract or agreement. 391 -1003 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 68 of 81 f. Breach of Contract "Personal and advertising injury" arising out of a breach of contract, except an implied contract to use another's advertising idea in your "advertisement ". g. Quality or Performance of Goods - Failure to Conform to Statements "Personal and advertising injury" arising out of the failure of goods, products or services to conform with any statement of quality or performance made in your "advertisement ". h. Wrong Description of Prices "Personal and advertising injury" arising out of the wrong description of the price of goods, products or services stated in your "advertisement ". i. Insureds in Media and Internet Type Businesses "Personal and advertising injury" committed by an insured whose business-is: (1) Advertising, broadcasting, publishing or telecasting; (2) Designing or determining content of web -sites for others; or (3) An Internet search, access, content or service provider. However, this exclusion does not apply to F. Liability and Medical Expenses Definitions, 15. "Personal and Advertising Injury", paragraphs a., b. and c. For the purposes of this exclusion, the placing of frames, borders or links, or advertising, for you or others anywhere on the Internet, is not by itself considered the business of advertising, broadcasting, publishing or telecasting. j. Pollution "Personal and advertising injury" arising out of the actual, alleged or threatened discharge, dispersal, seepage, migration, release or escape of "pollutants" at any time. k. Pollution - Related Any loss, cost or expense arising out of any: (1) Request, demand, order or statutory or regulatory requirement that any insured or others test for, monitor, clean -up, remove, contain, treat, detoxify or neutralize, or in any way respond to, or assess the effects of, "pollutants "; or HaThe nover Insurance Group- (2) Claim or "suit" by or on behalf of a governmental authority for damages because of testing for, monitoring, cleaning up, removing, containing, treating, detoxifying or neutralizing, or in any way responding to, or assessing the effects of, "pollutants ". I. Electronic Chatrooms or Bulletin Boards "Personal and advertising injury" arising out of an electronic chatroom or bulletin board the insured hosts, owns or over which the insured exercises control: m. Infringement of Copyright, Patent, Trademark or Trade Secret "Personal and advertising injury" arising out of the infringement of copyright, patent, trademark, trade ,secret or other intellectual property rights. Under this exclusion, such other intellectual property rights do not include the use of another's advertising idea in your "advertisement ". However, this exclusion does not apply to infringement, in your "advertisement ", of copyright, trade dress or slogan. n. Unauthorized Use of Another's Name of Product "Personal and advertising injury" arising out of the unauthorized use of another's name or product in your e -mail address, domain name or metatags, or any other similar tactics to mislead another's potential customers. 3. Additional Exclusions Applicable to Medical Expenses Coverage Only We will not pay expenses for "bodily injury": a. Any Insured To any insured, except "volunteer workers ". b. Hired Person To a person hired to do work for or on behalf of any insured or a tenant of any insured. c. Injury on Normally Occupied Premises To a person injured on that part of premises you own or rent that the person normally occupies. d. Workers' Compensation and Similar Laws To a person, whether or not an "employee" of any insured, if benefits for 391 -1003 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 69 of 81 the "bodily injury" are payable or must be provided under a workers' material" and , arising out of the compensation or disability benefits operation of a "nuclear facility" by law or a similar law. any person or organization. e. Athletic Activities (3) Under Business Liability Coverage, To a person injured while practicing, to "bodily injury" or "property damage resulting from the instructing or participating in any "hazardous properties" of the physical exercises or games, sports "nuclear material "; if: or athletic contests. f. Products- Completed Operations (a) The "nuclear material ": Hazard (i) Is at any "nuclear facility" Included within the "products - owned by, or operated by or on behalf of, an insured; or completed operations hazard ". g. Otherwise Excluded (ii) Has been discharged or dispersed therefrom; Otherwise Excluded under SECTION (b) The "nuclear material" is II - LIABILITY, B. Exclusions, 1. contained in "spent fuel" or Applicable To Business Liability "waste" at any time possessed, Coverage. handled, used, processed, 4. Additional Exclusions Applicable To Both stored, transported or disposed Business Liability Coverage and Medical of by or on behalf of an insured; Expenses Coverage: or Nuclear Energy Liability Exclusion (c) The "bodily injury" or "property This insurance does not apply: damage" arises out of the furnishing by an insured of (1) Under Business Liability Coverage, services, materials, parts or to "bodily injury" or "property equipment in connection with the damage ": planning, construction, (a) With respect to which an insured maintenance, operation or use of under the policy is also an any "nuclear facility "; but if such insured under a nuclear energy facility is located within the liability policy issued by the United States of America, its Nuclear Energy Liability territories or possessions or Insurance Association, Mutual Canada, this Exclusion (3) Atomic Energy Liability applies only to "property Underwriters or Nuclear damage" to such "nuclear Insurance Association of facility" and any property Canada, or would be an insured thereat. under any such policy but for its (4) As used in this exclusion: termination upon exhaustion of its limit of liability; or (a) "By- product material" has the (b) Resulting from the "hazardous meaning given it in the Atomic Energy Act of 1954 or in any law properties" of "nuclear material" amendatory thereof; and with respect to which: (b) "Hazardous properties" include (i) Any person or organization radioactive, toxic or explosive is required to maintain properties; financial protection pursuant to the Atomic Energy Act of (c) "Nuclear facility" means: 1954, or any law amendatory (i) Any "nuclear reactor "; thereof; or (ii) Any equipment or device (ii) The insured is, or had this designed or used for: policy not been issued would 1) Separating the isotopes be, entitled to indemnity of uranium or plutonium; from' the United States of America, or any agency 2) Processing or utilizing thereof, under any "spent fuel "; or agreement entered into by 3) Handling, processing or the United States of packaging "waste "; America, or any agency thereof, with any person or (iii) Any equipment or device organization. used for the processing, fabricating or alloying of (2) Under Medical Expenses Coverage, "special nuclear material" if to expenses incurred with respect to at any time the total amount "bodily injury" resulting from the of such material in the "hazardous properties" of "nuclear 391 -1003 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 70 of 81 Hane nover Insurance Group- custody of the insured at the a. An individual, you and your spouse premises where such are insureds, but only with respect to equipment or device is located the conduct of a business of which consists of or contains more you are the sole owner. than 25 grams of plutonium or b. A partnership or joint venture, you uranium 233 or any combination thereof, or more are an insured. Your members, your than 250 grams of uranium partners and their spouses are also 235; insureds, but only with respect to the conduct of your business. (iv) Any structure, basin, excavation, premises or place c. A limited liability company, you are prepared or used the an insured. Your members are also ,for storage or disposal of "waste"; insureds, but only with respect to the conduct of your business. Your and includes the site on which any managers are insureds, but only with of the foregoing is located, all respect to their duties as your operations conducted on such site managers. and all premises used for such d. An organization other than a operations; partnership, joint venture or limited (d) "Nuclear material" means "source liability company, you are an insured. material ", "special nuclear Your "executive officers" and material" or "by- product material "; directors are insureds, but only with (e) "Nuclear reactor" means any respect to their duties as your apparatus designed or used to officers or directors. Your sustain nuclear fission in a stockholders are also insureds, but self- supporting chain reaction or only with respect to their liability as to contain a critical mass of stockholders. fissionable material; e. A trust, you are an insured. Your (f) "Property damage" includes all trustees are also insureds, but only forms of radioactive contamination with respect to their duties as of property. trustees. (g) "Source material" has the 2. Each of the following is also an insured: meaning given it in the Atomic a. Your "volunteer workers" only while Energy Act of 1954 or in any law performing duties related to the amendatory thereof; conduct of your business, or your (h) "Special nuclear material" has the "employees ", other than either your meaning given it in the Atomic "executive officers" (if you are an Energy Act of 1954 or in any law organization other than a amendatory thereof; partnership, joint venture or limited (i) „ Spent fuel means any fuel liability company) or your managers (if you are a limited liability element or fuel component, solid company), but only for acts within the or liquid, which has been used or scope of their employment by you or , exposed to radiation in a nuclear while performing duties related to the reactor "; conduct of your business. However, Q) "Waste" means any waste none of these "employees" or material: "volunteer workers" are insureds for: (i) Containing "by- product material" other than the tailings or wastes produced by the extraction or concentration of uranium or thorium from any ore processed primarily for its "source material" content; and (ii) Resulting from the operation by any person or organization of any "nuclear facility" included under paragraphs (i) and (ii) of the definition of "nuclear facility ". C. Who Is An Insured 1. If you are designated in the Declarations as: (1) "Bodily injury" or "personal and advertising injury ": (a) To you, to your partners or members (if you are a partnership or joint venture), to your members (if you are a limited liability company), or to a co- "employee" while in the course of his or her employment or performing duties related to the conduct of your business, or to your other "volunteer workers" while performing duties related to the conduct of your business ; (b) To the spouse, child, parent, brother or sister of that co- 391 -1003 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 71 of 81 "employee" as a consequence of paragraph (1) (a) above; (c) For which there is any obligation to share damages with or repay someone else who must pay damages because of the injury described in paragraphs (1)(a) or (1)(b); or (d) Arising out of his or her providing or failing to provide professional services. (2) "Property damage" to property: (a) Owned, occupied or used by; or (b) Rented to, in the care, custody or control of, or over which physical control is being exercised for any purpose by; you, any of your "employees ", "volunteer workers ", any partner or member (if you are a partnership or joint venture), or any member (if you are a limited liability company). b. Any person (other than your "employee" or "volunteer worker ") or any organization while acting as your real estate manager. c. Any person or organization having proper temporary custody of your property if you die, but only: (1) With respect to liability arising out of the maintenance or use of that property; and (2) Until your legal representative has been appointed. d. Your legal representative if you die, but only with respect to duties as such. That representative will have all your rights and duties under this policy. 3. Any organization you newly acquire or form, acquire or form, other than a partnership, joint venture or limited liability company, and over which you maintain ownership or majority interest, will qualify as a Named Insured if there is no other similar insurance available to that organization. However: a. Coverage under this provision is afforded only until the 90th day after you acquire or form the organization or the end of the policy period, whichever is earlier; and b. Business Liability Coverage does not apply to: (1) "Bodily injury" or "property damage" that occurred before you acquired or formed the organization; and (2) "Personal and advertising injury" arising out of an offense committed before you acquired or formed the organization. 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. D. Liability and Medical Expenses Limits of Insurance 1. The Limits of Insurance under SECTION II - LIABILITY shown in the Declarations and the rules below fix the most we will pay regardless of the number of: a. Insureds; b. Claims made or "suits" brought; or c. Persons or organizations making claims or bringing "suits ". 2. Subject to the Aggregate Limit identified in paragraph 5. below, the most we will pay for the sum of all damages because of all: a. "Bodily injury ", "property damage" and medical expenses arising out of any one "occurrence "; and b. "Personal and advertising injury" sustained by any one person or organization; is the Liability And Medical Expenses Limit shown in the Declarations. 3. Subject to the Liability And Medical Expenses Limit, the most we will pay for all medical expenses because of "bodily injury" sustained by any one person is the Medical Expenses Limit shown in the Declarations. 4. The Damage to Premises Rented to You .Limit shown in the Declarations. is the most we will pay for damages because of "property damage" to any one premises while rented to you, or temporarily occupied by you with permission of the owner. 5. Aggregate Limits a. The most we will pay for: (1) All "bodily injury" and "property damage" that is included in the "products- completed operations hazard" is twice the Liability And Medical Expenses Limit. (2) All: (a) "Bodily injury" and "property damage" except damages because of "bodily injury" and 391 -1003 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 72 of 81 "property damage" included in the "products- completed operations hazard "; (b) Plus medical expenses; (c) Plus all "personal and advertising injury" caused by offenses committed; is twice the Liability And Medical Expenses Limit. b. The Aggregate Limits of Insurance apply separately to each of your "locations" owned by or rented to you. "Location" means premises involving the same or connecting lots, or premises whose connection is interrupted only by a street, roadway, waterway or right -of -way of a railroad. 6. The Limits of Insurance of SECTION II - LIABILITY apply separately to each consecutive annual period and to any remaining period of less than 12 months, starting with the beginning of the policy period shown in the Declarations, unless the policy period is extended after issuance for an additional period of less than 12 months. In that case, the additional period will be deemed part of the last preceding period for purposes of determining the Limits of Insurance. E. Liability and Medical Expenses General Conditions 1. Bankruptcy Bankruptcy or insolvency of the insured or of the insured's estate will not relieve us of our obligations under this Coverage Part. 2. Duties in the Event of Occurrence, Offense, Claim or Suit a. You must see to it that we are notified as soon as practicable of an "occurrence" or an offense which may result in a claim. To the extent possible, notice should include: (1) How, when and where the "occurrence" or offense took place; (2) The names and addresses of any injured persons and witnesses; and (3) The nature and location of any injury or damage arising out of the "occurrence" or offense. b. If a claim is made or "suit" is brought against any insured, you must: (1) Immediately record the specifics of the claim or "suit" and the date received; and (2) Notify us as soon as practicable. a-A-` Hane nover Insurance Group- You must see to it that we receive written notice of the claim or "suit" as soon as practicable. c. You and any other involved insured must: (1) Immediately send us copies of any demands, notices, summonses or legal papers received in connection with the claim or "suit "; (2) Authorize us to obtain records and other information; (3) Cooperate with us in the investigation, or settlement of the claim or defense against the "suit "; and (4) Assist us, upon our request, in the enforcement of any right against any person or organization that may be liable to the insured because of injury or damage to which this insurance may also apply. d. No insured will, except at that insured's own cost, voluntarily make a payment, assume any obligation, or incur any expense, other than for first aid, without our consent. 3. Legal Action Against Us No person or organization has a right under this Coverage Part: a. To join us as a party or otherwise bring us into a "suit" asking for damages from an insured; or b. To sue us on this policy unless all of its terms have been fully complied with. A person or organization may sue us to recover on an agreed settlement or on a final judgment against an insured; but we will not be liable for damages that are not payable under the terms of this policy or that are in excess of the applicable Limit of Insurance. An agreed settlement means a settlement and release of liability signed by us, the insured and the claimant or the claimant's legal representative. 4. Separation of Insureds Except with respect to the Limits of Insurance under SECTION II - LIABILITY, and any rights or duties specifically assigned in this Coverage Part to the first Named Insured, this insurance applies: a. As if each Named Insured were the only Named Insured; and b. Separately to each insured against whom claim is made or "suit" is brought. 391 -1003 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 73 of 81 F. Liability and Medical Expenses Definitions provided the insured's responsibility 1. "Advertisement" means a notice that is to pay damages is determined in a broadcast or published to the general "suit" on the merits in the territory public or specific market segments about described in paragraph a. above or your goods, products or services for the in a settlement we agree to. purpose of attracting customers or 5. "Employee" includes a "leased worker ". supporters. For the purposes of this "Employee" does not include a definition: "temporary worker ". a. Notices that are published include 6. "Executive officer ". means a person material placed on the Internet or on holding any of the officer positions similar electronic means of created by your charter, constitution, communication; and by -laws or any other similar governing b. Regarding websites, only that part of a document. website that is about your goods, 7. "Hostile fire" means one which becomes products or services for the purposes uncontrollable or breaks out from where of attracting customers or supporters it was intended to be. is considered an advertisement. 8. "Impaired property" means tangible 2. "Auto" means: property, other than "your product" or a. A land motor vehicle, trailer or "your work ", that cannot be used or is semitrailer designed for travel on less useful because: public roads, including any attached a. It incorporates "your product" or machinery or equipment; or "your work" that is known or thought b. Any other land vehicle that is subject to be defective, deficient, inadequate to a compulsory or financial or dangerous; or responsibility law or other motor b. You have failed to fulfill the terms of vehicle insurance law in the state a contract or agreement; where it is licensed or principally if such property can be restored to use garaged. by the repair, replacement, adjustment However, "auto" does not include "mobile or removal of "your product" or "your equipment ". work ", or your fulfilling the terms of the 3. "Bodily injury" means bodily injury, contract or agreement. sickness or disease sustained by a 9. "Insured contract" means: person, including death resulting from any "Bodily a. A contract for a lease of premises. o f these at any time. injury" However, that portion of the contract includes mental anguish or other mental "bodily ". for a lease of premises that injury resulting from injury indemnifies any person or 4. "Coverage territory" means: organization for damage to premises a. The United States of America while rented to you or temporarily (including its territories and occupied by you with permission of "insured possessions), Puerto Rico and the owner is not an "; Canada; contract b. International waters or airspace, but b. A sidetrack agreement; only if the injury or damage occurs in c. Any easement or license agreement, the course of travel or transportation except in connection with between any places included in construction or demolition Paragraph a. above; or operations on or within 50 feet of a c. All other parts of the world if the injury railroad; or damage arises out of: d. An obligation, as required by (1) Goods or products made or sold ordinance, to indemnify a by you in the territory described in municipality, except in connection paragraph a. above; with work for a municipality; (2) The activities of a person whose e. An elevator maintenance agreement; home is in the territory described f. That part of any other contract or in paragraph a. above, but is away agreement pertaining to your for a short time on your business; business (including an or indemnification of a municipality in (3) "Personal and advertising injury" connection oruner performed offenses that take place through for h ch the Internet or similar electronic you assume the tort liability of means of communication; another party to pay for "bodily of injury" or damage" to a third person or organization. 391 -1003 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 74 of 81 HaThe nover Insurance Group.. Tort liability means a liability that a. Bulldozers, farm machinery, forklifts would be imposed by law in the and other vehicles designed for use absence of any contract or agreement. principally off public roads; Paragraph f. does not include that part b. Vehicles maintained for use solely of any contract or agreement: on or next to premises you own or (1) That indemnifies a railroad for rent; bodily injury or 11property c. Vehicles that travel on crawler damage" arising out of treads; construction or demolition operations, within 50 feet of any d. Vehicles, whether self - propelled or railroad property and affecting any not, on which are permanently railroad bridge or trestle, tracks, mounted: road beds, tunnel, underpass or (1) Power cranes, shovels, loaders, crossing; diggers or drills; or (2) That indemnifies an architect, (2) Road construction or resurfacing engineer or surveyor for injury or equipment such as graders, damage arising out of: scrapers or rollers; (a) Preparing, approving or failing e. Vehicles not described in paragraphs to prepare or approve maps, a., b., c. or d. above that are not drawings, opinions, reports, self - propelled and are maintained surveys, change orders, primarily to provide mobility to designs or specifications; or permanently attached equipment of (b) Giving directions or the following types: instructions, or failing to give (1) Air compressors, pumps and them, if that is the primary generators, including spraying, cause of the injury or damage; welding, building cleaning, or geophysical exploration, lighting (3) Under which the insured, if an and well servicing equipment; or architect, engineer or surveyor, (2) Cherry pickers and similar assumes liability for an injury or devices used to raise or lower damage arising out of the workers; insured's rendering or failure to render professional services, f. Vehicles not described in paragraphs including those listed in paragraph a., b., c. or d. above maintained (2) above and supervisory, primarily for purposes other than the inspection or engineering transportation of persons or cargo. services. However, self - propelled vehicles with 10. "Leased worker" means a person leased the following types of permanently "mobile to you by a labor leasing firm under an attached equipment are not agreement between you and the labor ,equipment but will be considered leasing firm, to perform duties related to autos the conduct of your business. "Leased (1) Equipment designed primarily worker" does not include a "temporary for: worker ". (a) Snow removal; 11. "Loading or unloading" means the (b) Road maintenance, but not handling of property: construction or resurfacing; a. After it is moved from the place where or it is accepted for movement into or "auto "; (c) Street cleaning; onto an aircraft, watercraft or b. While it is in or on an aircraft, (2) Cherry pickers and similar devices mounted on automobile watercraft or "auto "; or or truck chassis and used to c. While it is being moved from an raise or lower workers; and aircraft, watercraft or "auto" to the (3) Air compressors, pumps and place where it is finally delivered; generators, including spraying, but "loading or unloading" does not welding, building cleaning, include the movement of property by geophysical exploration, lighting means of a mechanical device, other than and well servicing equipment. a hand truck, that is not attached to the However, "mobile equipment" does aircraft, watercraft or "auto ". not include any land vehicles that 12. "Mobile equipment" means any of the are sub'e t to compulsory ar�inancial responsibgity following types of land vehicles, including any attached machinery or equipment: 391 -1003 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 75 of 81 law or other motor vehicle insurance law in the state where they are licensed or principally garaged. Land vehicles subject to a compulsory or financial responsibility law or other motor vehicle insurance law are considered "autos ". 13. "Occurrence" means an accident, including continuous or repeated exposure to substantially the same general harmful conditions. 14. "Personal and advertising injury" means injury, including consequential "bodily injury ", arising out of one or more of the following offenses: a. False arrest, detention or imprisonment; b. Malicious prosecution; c. The wrongful, eviction from, wrongful entry into, or invasion of the right of private occupancy of a room, dwelling or premises that a person occupies, committed by or on behalf of its owner, landlord or lessor; d. Oral or written publication, in any manner, of material that slanders or libels a person or organization or disparages a person's or organization's goods, products or services; e. Oral or written publication, in any manner, of material that violates a person's right of privacy; f. The use of another's advertising idea in your "advertisement "; or g. Infringing upon another's copyright, trade dress or slogan in your "advertisement ". 15. "Pollutants" mean 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. 16. "Products - completed operations hazard ": a.' Includes all "bodily injury" and "property damage" occurring away from premises you own or rent and arising out of "your product" or "your work" except: (1) Products that are still in your physical possession; or (2) Work that has not yet been completed or abandoned. However, "your work" will be deemed completed at the earliest of the following times: (a) When all of the work called for in your contract has been completed. (b) When all of the work to be done at the job site has been completed if your contract calls for work at more than one job site. (c) When that part of the work done at the job site has been put to its intended use by any other person or organization other than another contractor or subcontractor working on the same project. Work that may need service, maintenance, correction, repair or replacement, but which is otherwise complete, will be treated as completed. The "bodily injury" or "property damage" must occur away from premises you own or rent, unless your business includes the selling, handling or distribution of "your product" for consumption on premises you own or rent. b. Does not include "bodily injury" or "property damage" arising out of: (1) The transportation of property, unless the injury or damage arises out of a condition in or on a vehicle not owned or operated by you, and that condition was created by the "loading or unloading" of that vehicle by any insured; or (2) The existence of tools, uninstalled equipment or abandoned or unused materials. 17. "Property damage" means: a. Physical injury to tangible property, including all resulting loss of use of that property. All such loss of use shall be deemed to occur at the time of the physical injury that caused it; or b. Loss of use of tangible property that is not physically injured. All such loss of use shall be deemed to occur at the time of the "occurrence" that caused it. For the purposes of this insurance, electronic data is not tangible property. As used in this definition, electronic data means information, facts or programs stored as, created or used on, or transmitted to or from computer software, including systems and applications software, hard or floppy disks, CD -ROMs, tapes, drives, cells, data processing devices or any other media which are . used with electronically controlled equipment. 391 -1003 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 76 of 81 18. "Suit" means a civil proceeding in which damages because of "bodily injury ", "property damage ", "personal and advertising injury" to which this insurance applies are alleged. "Suit" includes: a. An arbitration proceeding in which such damages are claimed and to which the insured must submit or does submit with our consent; or b. Any other alternative dispute resolution proceeding in which such damages are claimed and to which the insured submits with our consent. 19. "Temporary worker" means a person who is furnished to you to substitute for a permanent "employee" on leave or to meet seasonal or short -term workload conditions. 20. "Unmanned aircraft" means an aircraft that is not: a. Designed; b. Manufactured; or c. Modified after manufacture; to be controlled directly by a person from within or on the aircraft. 21. "Volunteer worker" means a person who is not your "employee ", and who donates his or her work and acts at the direction of and within the scope of duties determined by you, and is not paid a fee, salary or other compensation by you or anyone else for their work performed for you. 22. "Your product ": a. Means: (1) Any goods or products, other than real property, manufactured, sold, handled, distributed or disposed of by: (a) You; (b) Others trading , under your name; or (c) A person or organization whose business or assets you have acquired; and (2) Containers (other than vehicles), materials, parts or equipment furnished in connection with such goods or products. b. Includes: (1) Warranties or representations made at any time with respect to the fitness, quality, durability, performance or use of "your product "; and The Hanover Insurance Group- (2) The providing of or failure to provide warnings or instructions. c. Does not include vending machines or other property rented to or located for the use of others but not sold. 23. "Your work ": a. Means: (1) Work or operations performed by you or on your behalf; and (2) Materials, parts or equipment furnished in connection with such work or operations. b. Includes: (1) Warranties or representations made at any time with respect to the fitness, quality, durability, performance or use of "your work "; and (2) The providing of or failure to provide warnings or instructions. SECTION III - COMMON POLICY CONDITIONS (APPLICABLE TO SECTION I - PROPERTY AND SECTION II - LIABILITY) A. Cancellation 1. The first Named Insured shown in the Declarations may cancel this policy by mailing or delivering to us advance written notice of cancellation. 2. We may cancel this policy by mailing or delivering to the first Named Insured written notice of cancellation at least: a. 5 days before the effective date of cancellation if any one of the following conditions exists at any building that is Covered Property in this policy: (1) The building has been vacant or unoccupied 60 or more consecutive days. This does not apply to: (a) Seasonal unoccupancy; or (b) Buildings in the course of construction, renovation or addition. Buildings with 65% or more of the rental units or floor area vacant or unoccupied are considered unoccupied under this provision. (2) After damage by a covered cause of loss, permanent repairs to the building: (a) Have not started, and (b) Have not been contracted for, within 30 days of initial payment of loss. 391 -1003 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 77 of 81 (3) The building has: (a) An outstanding order to vacate; (b) An outstanding demolition order; or (c) Been declared unsafe by governmental authority. (4) Fixed and salvageable items have been or are being removed from the building and are not being replaced. This does not apply to such removal that is necessary or incidental to any renovation or remodeling. (5) Failure to: (a) Furnish necessary heat, water, sewer service or electricity for 30 consecutive days or more, except during a period of seasonal unoccupancy; or (b) Pay property taxes that are owed and have been outstanding for more than one year following the date due, except that this provision will not apply where you are in a bona fide dispute with the taxing authority regarding payment of such taxes. b. 10 days before the effective date of cancellation if we cancel for nonpayment of premium. c. 30 days before the effective date of cancellation if we cancel for any other reason. 3. We will mail or deliver our notice to the first Named Insured's last mailing address known to us. 4. Notice of cancellation will state the effective date of cancellation. The policy period will end on that date. 5. If this policy is cancelled, we will send the first Named Insured any premium refund due. If we cancel, the refund will be pro rata. If the first Named Insured cancels, the refund may be less than pro rata. The cancellation will be effective even if we have not made or offered a refund. 6. If notice is mailed, proof of mailing will be sufficient proof of notice. B. Changes This policy contains all the agreements between you and us concerning the insurance afforded. The first Named Insured shown in the Declarations is authorized to make changes in the terms of this policy with our consent. This policy's terms can be amended or waived only by endorsement issued by us and made a part of this policy: C. Concealment, Misrepresentation or Fraud This policy is void in any case of fraud by you as it relates to this policy at any time. It is also void if you or any other insured, at any time, intentionally conceals or misrepresents a material fact concerning: 1. This policy; 2. The Covered Property; 3. Your interest in the Covered Property; or 4. A claim under this policy. D. Examination of Your Books and Records We may examine and audit your books and records as they relate to this policy at any time during the policy period and up to three years afterward. We have the right to make copies of these books and records. E. Inspections and Surveys 1. We have the right but not the duty to: a. Make inspections and surveys at any time; b. Give you reports on the conditions we find; and c. Recommend changes. 2. We are not obligated to make any inspections, surveys, reports or recommendations and any such actions we do undertake relate only to insurability and the premiums to be charged. We do not make safety inspections. We do not undertake to perform the duty of any person or organization to provide for the health or safety of workers or the public. We do not warrant that conditions: a. Are safe and healthful; or b. Comply with laws, regulations, codes or standards. 3. Paragraphs 1. and 2. of this condition apply not only to us, but also to any rating, advisory, rate service or similar organization which makes insurance inspections, surveys, reports or recommendations. 4. Paragraph 2. of this condition does not apply to any inspections, surveys, reports or recommendations we may make relative to certification, under state or municipal statutes, ordinances or regulations, of boilers, pressure vessels or elevators. F. Insurance Under Two or More Coverages If two or more of this policy's coverages apply to the same loss or damage, you may choose only one of these coverages to apply to that loss. 391 -1003 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 78 of 81 The Hanover Insurance Group- 1. SECTION I - PROPERTY, if two or more of However, if you agree in a written this coverage part's coverages apply to contract, written agreement, or the same loss or damage, we will not pay written permit that the insurance more than the actual amount of the loss or provided to any person or damage. organization included as an 2. SECTION II - LIABILITY, it is our stated Additional Insured under this intent that the various Coverage Parts, Coverage Part is primary and forms, endorsements or policies issued to non - contributory, we will not seek the named insured by us, or any company contribution from any other affiliated with us, do not provide any insurance available to that Additional duplication or overlap of coverage for the Insured which covers the Additional same claim, "suit ", "occurrence ", offense, Insured as a Named Insured except: accident, "wrongful act" or loss. We will (1) For the sole negligence of the not pay more than the actual amount of Additional Insured; or the loss or damage. (2) When the Additional Insured is If this Coverage Part and any other an Additional Insured under Coverage Part, form, endorsement or another liability policy. policy issued to the named insured by us, b. Excess Insurance or any company affiliated with us, apply to the same claim, "suit ", occurrence, This insurance is excess over: offense, accident, "wrongful act" or loss, (1) Any of the other insurance, the maximum Limit of Insurance under all whether primary, excess, such Coverage Parts, - forms, contingent or on any other basis: endorsements or policies combined shall a That is Fire, Extended not exceed the highest applicable Limit of Insurance under any one Coverage Part, Coverage, Builder's Risk, form, endorsement or policy. Installation Risk or similar coverage for "your work "; This condition does not apply to any Excess or Umbrella Policy issued by us (b) That is Property Insurance for specifically to apply as excess insurance premises rented to you or temporarily occupied by you over this policy. with permission of the owner; G. Liberalization (c) That is insurance purchased If we adopt any revision that would broaden by you to cover your liability the coverage under this policy without as a tenant for "property additional premium within 45 days prior to or damage" to premises rented during the policy period, the broadened to you or temporarily coverage will immediately apply to this policy. occupied by you with H. Other Insurance permission of the owner; or 1. SECTION I - PROPERTY (d) If the loss arises out of the If there is other insurance covering the maintenance or use of aircraft, "autos" or watercraft same loss or damage, we will pay only for to the extent not subject to the amount of covered loss or damage in SECTION II - LIABILITY, excess of the amount due from that other Exclusion g. Aircraft, Auto or insurance, whether you can collect on it or Watercraft; and not. But, we will not pay more than the applicable Limit of Insurance of SECTION 1 (2) Any other primary insurance - PROPERTY. available to you covering liability 2. SECTION II - LIABILITY for damages arising out of the premises or operations, or the If other valid and collectible insurance is products and completed available to the insured for a loss we operations, for which you have cover under SECTION II - LIABILITY, our been added as an additional obligations are limited as follows: insured by attachment of an a. Primary Insurance endorsement. This insurance is primary except when When this insurance is excess, we will have no duty under SECTION II - paragraph b. below applies. If this LIABILITY to defend the insured insurance is primary, our obligations are not affected unless any of the „ against any suit if any other other insurance is also primary. Then, insurer has a duty to defend the „ insured against that suit „ . If no other we will share with all that other i insurance by the method described in insurer defends, we will undertake to paragraph c. below. do so, but we will be entitled to the 391 -1003 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 79 of 81 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: (1) The total amount that all such other insurance would pay for the loss in the absence of this insurance; and (2) The total of all deductible and self- insured amounts under all that other insurance. d. We will share the remaining loss, if any, with any other insurance that is not described in this provision and was not bought specifically to apply in excess of the Limits of Insurance shown in the Declarations for this Coverage. e. 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. f. When this insurance is excess, we will have no duty under Business Liability Coverage to defend any claim or "suit" that any other insurer has a duty to defend. 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. Premiums 1. The first Named Insured shown in the Declarations: a. Is responsible for the payment of all premiums; and b. Will be the payee for any return premiums we pay. 2. The premium shown in the Declarations was computed based on rates in effect at the time the policy was issued. On each renewal, continuation or anniversary of the effective date of this policy, we will compute the premium in accordance with our rates and rules then in effect. 3. With our consent, you may continue this policy in force by paying a continuation premium for each successive one -year period. The premium must be: a. Paid to us prior to the anniversary date; and b. Determined in accordance with paragraph 2. above. Our forms then in effect will apply. If you do not pay the continuation premium, this policy will expire on the first anniversary date that we have not received the premium. 4. Undeclared exposures or change in your business operation, acquisition or use of locations may occur during the policy period that is not shown in the Declarations. If so, we may require an additional premium. That premium will be determined in accordance with our rates and rules then in effect. J. Premium Audit 1. This policy is subject to audit if a premium designated as an advance premium is shown in the Declarations. We will compute the final premium due when we determine your actual exposures. 2. Premium shown in this policy as advance premium is a deposit premium only. At the close of each audit period, we will compute the earned premium for that period and send notice to the first Named Insured. The due date for audit premiums is the date shown as the due date on the bill. If the sum of the advance and audit premiums paid for the policy period is greater than the earned premium, we will return the excess to the first Named Insured. 3. The first Named Insured must keep records of the information we need for premium computation and send us copies at such times as we may request. K. Transfer of Rights of Recovery Against Others to Us 1. Applicable to SECTION I - PROPERTY Coverage: If any person or organization to or for whom we make payment under this policy has rights to recover damages from another, those rights are transferred to us to the extent of our payment. That person or organization must do everything necessary to secure our rights and must do nothing after loss to impair them. But you may waive your rights against another party in writing: 391 -1003 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 80 of 81 2. a. Prior to a loss to your Covered Property. b. After a loss to your Covered Property only if, at time of loss, that party is one of the following: (1) Someone insured by this insurance; (2) A business firm: (a) Owned or controlled by you; or (b) That owns or controls you; or (3) Your tenant. You may also accept the usual bills of lading or shipping receipts limiting the liability of carriers. This will not restrict your insurance. Applicable to SECTION II - LIABILITY Coverage: If the insured has rights to recover all or part of any payment we have made under this Coverage Part, those rights are transferred to us. The insured must do nothing after loss to impair such rights. At our request, the insured will bring "suit" or transfer those rights to us and help us enforce them. HaThe nover Insurance Group.. We waive any right of recovery we may have against any person or organization with whom you have a written contract, permit or agreement to waive any rights of recovery against such person or organization because of payments we make for injury or damage arising out of your ongoing operations or "your work" done under a contract with that person or organization and included in the "products- completed operations hazard ". This condition does not apply to Medical Expenses Coverage. L. Transfer of Your Rights and Duties Under This Policy Your rights and duties under this policy may not be transferred without our written consent except in the case of death of an individual Named Insured. If you die, your rights and duties will be transferred to your legal representative but only while that legal representative is acting within the scope of their duties as your legal representative. Until your legal representative is appointed, anyone with proper temporary custody of your property will have your rights and duties but only with respect to that property. 391 -1003 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 81 of 81