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AGMT - Forensic Nursing Specialists Inc dba Forensic Nurse Specialists (Forensic Examination Services)
AGREEMENT FOR FORENSIC EXAMINATION SERVICES This Agreement for Forensic Examination Services ("Agreement") is made and entered into as of the 1' day of October, 2021 (the `Effective Date"), by and between FORENSIC NURSING SPECIALISTS, INC., dba FORENSIC NURSE SPECIALISTS ("FNS"), a California corporation and SEAL BEACH POLICE DEPARTMENT ("Department"). WHEREAS, Department requires the collection of forensic evidence with respect to victims of sexual assault and other forms of interpersonal violence; WHEREAS, this is a mandatory expense as failure to provide a victim of sexual assault with an examination by a qualified healthcare professional would be a violation of the California Penal Code; WHEREAS, Department does not have the capability to collect the aforesaid forensic evidence internally; WHEREAS, FNS has specialized training and expertise in the forensic examination services and Department desires to contract such services from FNS; WHEREAS, FNS is the sole source providing this service in Orange County and there are no specific registries that utilizes forensic nurses solely for the purpose of exams; NOW, THEREFORE, in consideration of the mutual promises, covenants and conditions contained herein, the parties hereto agree as follows: 1. Services. FNS agrees to provide the following services (collectively, the "Services") to the Department: 1.1. Examination. FNS agrees to provide the Department approved forensic -medical exams 24/7 to sexual assault and other types of victims with a one�hour response to a mutually agreed upon examination location. The exam is to include digital imaging of injuries and physical findings. The examination will be conducted by forensic nurses who are trained and competent in the California State Protocol established by CALOES (California Office of Emergency Services). 1.2. Evidence. All evidence collected during the examination will be packaged, labeled and sealed according to the state and local crime lab requirements and submitted to the on-site evidence storage refrigerator with appropriate chain of custody documentation. Evidence for mobile exams (off site) or courtesy cases will be relinquished at the conclusion of that examination to the authorizing Department. Digital photographs will be available upon request by Department investigators. 1.3. Equipment and Supplies. FNS will provide all equipment and supplies to conduct all services listed in Exhibit A. 1.4. Testimony. FNS agrees to provide competent court testimony as requested by the Department (upon receipt of subpoena). 2. Compensation. In exchange for the Services to be provided by FNS pursuant to Section 1 above, Department shall compensate FNS according Exhibit A "FNS Fee Schedule". Services can be added at any time per Department request and negotiated rates. 2.1. Rate Adjustment. Department acknowledges and agrees that FNS is entitled to adjust the rates set forth in this Section 2, Exhibit A, from time to time and at any time. FNS shall use reasonable efforts to give Department at least sixty (60) days advance written notice of any increase or adjustment to rates. 3. Payment. FNS shall invoice Department monthly for all Services performed in each previous month. Department shall remit payment to FNS within thirty (30) days of receipt of an invoice. 4. Term. This Agreement shall be for a term of one year, commencing on the Effective Date and expiring on the second anniversary thereof (the "Initial Term"). This Agreement shall be renewable only upon the mutual written agreement of both parties hereto (each, a "Renewal Term" and together with the Initial Term, the "Tenn"). 5. Termination. Either party may terminate this Agreement without cause at any time during the term of this Agreement by providing the other party at least thirty (30) days prior written notice of termination. 6. Indemnification. The parties each shall indemnify, defend, and hold the other party harmless from and against any and all liability, loss, damages, costs, and expenses (including reasonable attorneys' fees) caused by the negligence or wrongful acts or omissions of such indemnifying party or it's employees, officers or agents. The provisions of this Section 5 shall survive the termination of this Agreement. Insurance. FNS shall procure and maintain at it's own expense the following insurance: 7.1. Commercial General Liability Insurance in an amount not less than $1,000,000 per each occurrence and $2,000,000 general aggregate. 7.2. Workers Compensation Insurance as required by the California Labor Code and employer's liability insurance in an amount not less than $1,000,000. This policy shall be endorsed to state that the insurer waive its right of subrogation against the Department,_ it's boards and commissions, and its officials, employees, and agents. 7.3. Professional liability or errors or omissions insurance in an amount not less than $1,000,000 per claim. 8. Confidentiality of Patient Information. None of the parties shall disclose any confidential patient health information to any third party, except where permitted or required by law or where the patient expressly approves such disclosure. FNS and the Department shall comply with all federal and state laws and regulations regarding the confidentiality of such information, including without limitation the Health Insurance Portability and Accountability Act (HIPAA) of 1996. 9. Non -Discrimination. By signing this Agreement, FNS certifies that it does not discriminate in hiring or treatment on the basis of race, color, creed, religion, sex, sexual orientation, age, mental status, national origin, ancestry, physical handicap or medical condition. 10. Non -Exclusivity. This Agreement is not exclusive, and nothing herein shall preclude either party from contracting with any other person or entity for any purpose. 11. Notices. Any notices required or desired to be given under this Agreement shall be in writing and personally delivered or deposited in the US Postal Service, first class at the following addresses: To Seal Beach: City of Seal Beach 211 -8th Street Seal Beach, California 90740 Attn: City Manager To FNS: Forensic Nursing Specialistts, ) nc.-33;13 Gaff i4e&AAre� o j1I 1014S ?VP Los Alamitos, CA 90720 Attn: Malinda Wheeler IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written above. CITY OF SEAL BEACH FORENSIC NURSING SPECIALISTS, INC., dba FORENSIC NURSE SPECIALISTS, a California corporation By y: Malinda Wheeler, President Philip Gonshak, Chief of Police EXHIBIT A- FEE SCHEDULE - 2021 Service Definition Rate Sexual Assault Forensic Exam Evidence collection, clothing, DNA reference $1000.00 samples, blood and urine toxicology, digital (All ages, reported or non- reported cases to law photography, medical -forensic documentation enforcement) using state mandated forms, healthcare treatment for STI prevention, HIV prevention and pregnancy prevention provided at the time of the exam. Mobile Trauma Exam A forensic exam conducted at any Orange County $1200 hospital in the ER or ICU when a patient is severely injured and admitted to that other hospital for on-going medical care. (Requests for Mobile exams in nursing homes and psychiatric facilities will be conducted on a case-by-case basis.) Dry Run Department calls out the on-call forensic nurse to $300.00 perform a case and through no fault of FNS, the victim changes their mind, refuses to permit the examination, does not want the examination, or does not permit forensic nurse to conduct the examination. Domestic'Violence/ A forensic exam focused on body injury and $500.00 Strangulation Exam assessment with specific written and photographic documentation on strangulation injury. Testimony Expert witness testimony by the forensic nurse $400.00/day upon receipt of subpoena form the District in court on Attorney's office the stand A� �® CERTIFICATE OF LIABILITY INSURANCE DATE (MM/DD/YYYY) 10/08/2021 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(les) 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 Aon Affinity Insurance Services, Inc. 1100 Virginia Drive, Suite 250 Fort Washington, PA 19034-3278 CONTACT Patrick Nicholson PHONE FAX 1-888-288-3534 A/c No): E-MAINo,L ADDRESS: customer.service@hpsocover.com INSURERS AFFORDING COVERAGE NAIC# 10/05/2021 INSURER A: ACE Fire Underwriters Insurance Company 20702 EACH OCCURRENCE $ 1,000,000 INSURED Forensic Nursing Specialist Inc DBA Forensic Nurse Specialist Inc INSURER B: 10413 Los Alamitos Boulevard INSURER C: INSURER D : Los Alamitos, CA,"90720 INSURER E: AOWNED INSURER F: COVERAGES CERTIFICATE NUMBER: 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 BYPAID CLAIMS. INSR I LTR TYPE OF INSURANCE ADDL INSO SUBR WVD POLICYNUMBER POLICY EFF MM/DD POLICY EXP MM/DD LIMITS A X COMMERCIAL GENERAL LIABILITY CLAIMS -MADE X OCCUR X SERCAF162495922 10/05/2021 10/05/2022 EACH OCCURRENCE $ 1,000,000 DAMAGETO RENTED PREMISES Ea occurrence $ 100,000 MED EXP (Any one person) $ 5,000 PERSONAL &ADV INJURY $ 1,000,000 GEN'L AGGREGATE LIMIT APPLIES PER: X POLICY 0 PRO LOC JECT OTHER: GENERAL AGGREGATE $ 2,000,000 PRODUCTS - COMP/OP AGG $ 2,000,000 $ AOWNED AUTOMOBILE LIABILITY ANY AUTO SCHEDULED AUTOS ONLY AUTOS HIRED NON -OWNED X AUTOS ONLY X AUTOS ONLY I SERCAF162495922 10/05/2021 10/05/2022 COMBINED SINGLE $ 1,000,000 accident) BODILY INJURY (Per person) $ BODILY INJURY (Per accident) $ PROPERTYDAMAGE $ Per accident UMBRELLA LIAS EXCESS LIAB HCLAIMS-MADE OCCUR EACH OCCURRENCE $ AGGREGATE $ DED I I RETENTION $ $ WORKERS COMPENSATION AND EMPLOYERS' LIABILITY y I N ANYPROPRIETORIPARTNERIEXECUTIVE ❑ OFFICERIMEMBEREXCLUDED? (Mandatory in NH) If yes, describe under DESCRIPTION OF OPERATIONS below N/A PER 70TH - STATUTE I I ER E.L. EACH ACCIDENT $ E.L. DISEASE -EA EMPLOYEE $ E.L. DISEASE - POLICY LIMIT $ DESCRIPTION OF OPERATIONS/ LOCATIONS /VEHICLES (ACORD 101, Additional Remarks Schedule, maybe attached If more space is required) Certificate holder is included as additional insured with respect to the Business Owners policy (BOP) per the policy terms and conditions. t1C13"r1C1f-A-re unl neo r`ANrFI I ATInhI City of Seal Beach SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE 219 Eighth Street, THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN Seal Beach, CA, 90740 ACCORDANCE WITH THE POLICY PROVISIONS. AUTHORIZED REPRESENTATIVE U 1utst1-ZU75 AL;uRu CORPOKA1i0ri- All rignl:s reserveu. ACORD 25 (2016/03) The ACORD name and logo are registered marks of ACORD CERTIFICATE OF LIABILITY INSURANCEDATE(MM/DD/YYYY) 9/10/2021 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 Pie Insurance Services CONTACT Malinda Wheeler NAME: 1755 Blake Street 5th Floor Denver, CO 80202 PHONE FAX INC, No Ed: IAIC, No: Email FNSMALINDA GMAIL . COM LIMITS Address: 00001 INSURERS AFFORDING COVERAGE NAIC # INSURERA SIRIUS AMERICA INS CO 001 INSURED Forensic Nurse Specialists INSURER B: INSURER C: Inc. 10412 Los Almitos Blvd Los Alamitos, CA 90720 INSURER D: INSURER E: GEN'L AGGREGATE LIMIT APPLIES PER: POLICYPROJECT F-] LOC OTHER GENERAL AGGREGATE $ INSURER F: THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACTOR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITSSHOWN MAYHAVE BEEN REDUCED BY PAID CLAIMS. TRTYPE OF INSURANCE IADDL SAO POLICY NUMBER POLICY EFF (MMlDD/YY) POLICY EXP (MM/DD/YY) LIMITS COMMERCIAL GENERAL LIABILITY CLAIMS -MADE❑ OCCUR EACH OCCURRENCE $ DAMAGE TO RENTED $ PREMISES (Fa o nce) MED. EXP (Any one person) $ PERSONAL & ADV INJURY $ GEN'L AGGREGATE LIMIT APPLIES PER: POLICYPROJECT F-] LOC OTHER GENERAL AGGREGATE $ PRODUCTS -COMP/OPAGG. $ AUTOMOBILE LIABILITY ANY AUTO OWNED SCHEDULED AUTOS ONLY AUTOS HIRED NON -OWNED AUTOS ONLY AUTOS ONLY COMBINED SINGLE LIMIT $ (Ea accident) BODILY INJURY (Per person) $ BODILY INJURY (Per accident) $ PROPERTY DAMAGE (Per accident) $ UMBRELLA LIAR EXCESS LIAB OCCUR CLAIMS - MADE EACH OCCURRENCE $ AGGREGATE $ DED I I RETENTION $ $ A WORKERS COMPENSATIONX AND EMPLOYEZV LIABILITY Y / N ANY PROPRIETOR/PARTNER/EXECUTIVE ❑ OFFICER/MEMBER EXCLUDED? (Mandatory'in NH) If yes, describe under DESCRIPTION OF OPERATIONS below NIA WC19880-01 10/2/2020 10/2/2021 PER STATUTE JOT ER ER - E.L. EACH ACCIDENT $ 11000,000 EL DISEASE - EACH EMPLOYEE $ 1,000,000 E.L. DISEASE- POLICY LIMIT $ 11000,000 DESCRIPTION OF OPERATIONS / LOCATIONS / VEHICLES (ACORD 101, Additional Remarks Schedule, may be attached if more space is required) PROOF OF INSURANCE - FOR REFERENCE ONLY CERTIFICATE HOLDER rrAW r—1 r ATnnKl FORENSIC NURSE SPECIALISTS SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE INC. 10412 LOS ALAMITOS BLVD THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. AUTHORIZED REPRESENTATIVE _ LOS ALAMITOS, CA 90720-2112 W IMIU-2015 ACORD CORPORATION. All rights reserved. ACORD 25(2016! 03) The ACORD name and logo are registered marks of ACORD 08/06/21 Malinda Wheeler Po Box 2273 Los Alamitos, CA 90720-7273 Dear Malinda Wheeler: 1100 Virginia Drive, Suite 250 Fort Washington, PA 19034-3278 Phone: 1-800-247-1500 Fax:1-800-758-3635 Website:www riso.com Enclosed is the replacement certificate of insurance that you requested. If you have any questions or need assistance, please call us toll free at 1-800-247-1500. Our Customer Service Representatives are available weekdays from 8:00 a.m. to 6:00 p.m., EST. Sincerely, Customer Service Enclosure Q032 Dedicated To Serving The Insurance Needs of Nurses Nurses Service Organization is a registered trade name of Affinity Insurance Services, Inc.; (AR 244489); in CA & MN, AIS Affinity Insurance Agency, Inc. (CA 0795465); in OK, AIS Affinity Insurance Services Inc.; in CA, Aon Affinity Insurance Services, Inc., (OG94493), Aon Direct Insurance Administrators and Berkely Insurance Agency and in NY, AIS Affinity Insurance Agency. HEALTHCARE PROVIDERS SERVICE e ORGANIZATION PURCHASING GROUP anso CNA Certificate of Immure OCCURRENCE PROFESSIONAL LIABILITY POLICY FORM Print Date: 8/06/2021 The application for the Policy and any and alisupplementary information, materials, and statements submitted therewith shall I be maintained on file by us or our Program Administrator and will be deemed attached to and incorporated into the Policy as i if physically attached. PRODUCER BRANCH PREFIX POLICY NUMBER POLICY PERIOD 018098 970 HPG 0583424467 From: 02/13/21 to 02/13/22 at 12:01 AM Standard Time Named Insured and Address: Program Administered by: Malinda Wheeler Po Box 2273 Los Alamitos, CA 90720-7273 Medical Specialty: Code: Pediatric/Neonatal/Faro Practice Nurse Practit 80965 Excludes Cosmetic Procedures Nurses Service Organization 1100 Virginia Drive, Suite 250 Fort Washington, PA 19034 1-800-247-1500 www. nso. com Insurance Provided by: American Casualty Company of Reading, Pennsylvania 151 N. Franklin Street Chicago, IL 60606 i Professional Liability $ 1,000,000 each claim $ 6,000,000 aggregate Your professional liability limits shown above include the following: j * Good Samaritan Liability * Malplacement Liability * Personal Injury Liability * Sexual Misconduct Included in the PL limit shown above subject to $ 25,000 aggregate sublimit :rage Extensions License Protection $ 25,000 per proceeding $ 25,000 aggregate Defendant Expense Benefit $ 1,000 per day limit $ 25,000 aggregate Deposition Representation $ 10,000 per deposition $ 10,000 aggregate Assault $ 25,000 per incident $ 25,000 aggregate Includes Workplace Violence Counseling Medical Payments $ 25,000 per person $ 100,000 aggregate First Aid $ 10,000 per incident $ 10,000 aggregate Damage to Property of Others $ 10,000 per incident $ 10,000 aggregate Information Privacy (HIPAA) Fines and Penalties $ 25,000 per incident $ 25,000 aggregate Media Expense $ 25,000 per incident $ 25,000 aggregate General Liabilit General Liability $1,000,000 each claim / $1,000,000 aggregate Fire & Water Legal Liability Included in the GL limit shown above subject to $250,000 aggregate sublimit Personal Liability $1,000,000 aggregate i Total $ 1.623.00 I Base Premium $1,623.00 Premium reflects Self Employed , Full Time Policy Forms and Endorsements (Please see attached list of policy forms and endorsements) Chairman of the oard Secretary Keep this Certificate of Insurance in a safe place. It and proof of payment are your proof of coverage. There is no coverage in force unless the premium is paid in full. To activate your coverage, please remit premium in full by the effective date of this Certificate of Insurance. Coverage Change Date: Endorsement Date: CNA93692 (11-2018) © Copyright CNA All Rights Reserved. Master Policy: 188711433 POLICY FORMS & ENDORSEMENTS The following are the policy forms and endorsements that apply to your current professional liability policy. COMMON POLICY FORMS & ENDORSEMENTS FORM # G -121500-D (04-08) G -121501-C1 (07-01) CNA94164 (11-18) G -145184-A (06-03) G -147292-A (03-04) GSL15563 (02-10) GSL15564 (10-09) GSL15565 (03-10) GSL17101 (02-10) GSL13424 (05-09) CNA80051 (09-14) CNA80052 (10-14) G -123846-D04 (07-01) CNA81753 (03-15) CNA81758 (03-15) CNA82011 (04-15) CNA89027 (10-17) CNA79575 (07-14) CNA89026 (05-17) G -121504-C (07-01) FORM NAME Common Policy Conditions Occurrence Policy Form - California Amendment Definition of Claim Endorsement Policyholder Notice - OFAC Compliance Notice Policyholder Notice - Silica, Mold & Asbestos Disclosure Information Privacy Coverage Endorsement HIPAA Fines, Penalties & Notification Costs Sexual Misconduct Sublimits of Liability Professional Liability & Sexual Misconduct Exclusion Healthcare Providers Professional Liability Assault Coverage Exclusion of Specified Activities Reuse of Parenteral Devices and Supplies Services to Animals Amended Definition of Personal Injury Endorsement Distribution or Recording of Material or Information in Violation of Law Exclusion Endorsement California Cancellation and Non -Renewal Coverage & Cap on Losses from Certified Acts Terrorism Notice - Offer of Terrorism Coverage & Disclosure of Premium Related Claims Endorsement Entity Exclusion Endorsement Exclusion of Cosmetic Procedures Media Expense Coverage General Liability Form PLEASE REFER TO YOUR CERTIFICATE OF INSURANCE FOR THE POLICY FORMS & ENDORSEMENTS SPECIFIC TO YOUR STATE AND YOUR POLICY PERIOD. For NJ residents: The PLIGA surcharge shown on the Certificate of Insurance is the NJ Property & Liability Insurance Guaranty Association. For KY residents: The Surcharge shown on the Certificate of Insurance is the KY Firefighters and Law Enforcement Foundation Program Fund and the Local Tax is the KY Local Government Premium Tax. As required by 806 Ky. Admin Regs. 2:100, this Notice is to advise you that a surcharge has been applied to your insurance premium and is separately itemized on the Declarations page or billing instrument attached to your policy, as required KRS. §136.392. For WV residents: The surcharge shown on the Certificate of Insurance is the WV Premium Surcharge. For FL residents: The FIGA Assessment shown on the Certificate of Insurance is the FL Insurance Guaranty Association - 2012 Regular Assessment. Form #:CNA93692 (11-2018) Master Policy #: 188711433 Named Insured: Malinda Wheeler Policy #: 0583424467 © Copyright CNA All Rights Reserved. business resource bUres®urcecenter.com As a policyholder through USLI or Devon Park Specialty, you have access to many free and discounted services through the Business Resource Center that will assist you in operating, growing and protecting your business. Consider the following services and associated cost savings when deciding where to place your insurance! HUMAN RESOURCES » Free human resources consultation hotline to be used for personnel issues, including harassment and discrimination, the Family and Medical Leave Act, disability, wage and Q� hours regulations and more ( » Online library with information, forms and articles pertaining to human resources » Discounted sexual harassment training and more 0 » Resources for recruiting and training as well as termination and administration PRE-EMPLOYMENT AND TENANT SCREENINGS » Discounted background checks, including multi -court criminal database searches, county criminal searches and more (first background check is free) » Best practices for performing a background check » Discounted tenant and drug screenings and motor vehicle reports (MVRs) PAYROLL AND TAXES » Discounted payroll processing and tax services tailored for either a small or large business CYBER RISK Try our cost -savings calculator to see how much you could save! » Materials about securing personal and payment card information » Complimentary access to tools and resources that will help you understand your exposure to a data breach and the importance of a response plan MARKETING » Suggested free and paid services, including email campaigns, photo editing, file management and more, for web marketing for your business » Suggested free and paid services for social media platforms, development, management and more » Discounted promotional items, giveaways and signage SAFETY » Free on-site safety and occupational health consultation for your business » Free personal credit report » Disaster and emergency preparedness resources » Discounted alcohol and food server safety training for your staff and servers » Discounted CPR and first aid training » Youth resources for concussion training, waivers of liability, recognizing the signs and symptoms of child abuse, and more It;, A In our continuing effort to provide you with excellent claim service, you may now report a claim and get claim assistance 24 hours a day/7 days a week. M For claim reporting, call toll free 1-888-875-5231 or visit USLLCOM and select the "report a claim"' option. G For emergency claims requiring immediate assistance, please use the toll free option. Your call will be referred to a claims professional who will respond within an hour of your call with direction and assistance. Thank you for placing your trust in our company. We pledge to work hard every day to earn and maintain that trust. • �O-X G�C� USLLCOM 888-523-5545 CRF 12116 y USLI.COM 888-523-5545 Note About Loss Control Dear Valued Policyholder, Slips, trips and falls are among the most frequent causes of loss. What might surprise you is that, many times, they result in claims and judgments in the hundreds of thousands of dollars, which ultimately impact your insurance premium. In most instances, these claims can be lessened or prevented entirely simply by addressing the most common causes of such losses listed below. Most Common Causes s Spills, wet or icy walking surfaces >a Uneven or worn floors/carpets/steps/sidewalks i,- Inadequate or poorly maintained lighting i Obstructed views Poor housekeeping - Excess clutter/trash in walkways or near open flames or hot surfaces We encourage you to please take the time to periodically inspect your .premises to see if any of these conditions exist and work to eliminate them where possible. Your efforts may save you money on future insurance premiums and, quite possibly, save your business. Thank you for choosing and trusting us to help protect your business! Regards, Thomas P. Nerney Chairman, President and CEO 'An ounce of prevention is worth a pound of cure." -Benjamin Franklin Loss Control 4J19 UNITED STATES LIABILITY INSURANCE GROUP CONSUMER DISCLOSURE NOTICE CALIFORNIA Please contact the agent or broker that has delivered your policy if you have questions or need assistance. If you need the telephone number of the agent or broker or need other assistance, please contact us at: 1190 Devon Park Drive, Wayne, PA 19087 Toll Free Direct 1-888-523-5545 Compliance Department Before you file a complaint with the California Department of Insurance, you should first contact the insurance company, agent or broker in an effort to resolve the issue(s). If you do not reach a satisfactory resolution of the issue(s), then contact the California Department of Insurance. You may contact the California Department of Insurance to obtain information or make a complaint. California Department of Insurance Consumer Communications Bureau 300 South Spring Street, South Tower Los Angeles, CA 90013 1 -800 -927 -HELP (4357) or 213-897-8921 TDD Number: 1-800-482-4TDD (4833) www.insurance.ca.gov CA Disc (08-19) Page 1 of 1 BP 1593633C Renewal of Number POLICY DECLARATIONS No. BP 1593633D United States Liability Insurance Company 1190 Devon Park Drive, Wayne, Pennsylvania 19087 A Member Company of United States Liability Insurance Group NAMED INSURED AND ADDRESS: FORENSIC NURSE SPECIALISTS INC. P.O. BOX 2273 LOS ALAMITOS, CA 90720 POLICY PERIOD: (MO. DAY YR.) From: 06/04/2021 To: 06/04/2022 FORM OF BUSINESS: Corporation BUSINESS DESCRIPTION: Office NO FLAT CANCELLATION 12:01 A.M. STANDARD TIME AT YOUR MAILING ADDRESS SHOWN ABOVE THIS POLICY CONSISTS OF THE FOLLOWING COVERAGE PARTS FOR WHICH A PREMIUM IS INDICATED. THIS PREMIUM MAY BE SUBJECT TO ADJUSTMENT. Businessowners Liability Coverage Part Businessowners Property Coverage Part Wholesaler Broker Fee TOTAL: Coverage Form(s) and Endorsement(s) made a part of this policy at time of issue See Endorsement EOD (1/95) PREMIUM $475.00 $221.00 $100.00 $796.00 Agent: SCOTTISH AMERICAN (CA) (4055) Issued: 05/27/20217:44 AM 2002 McFadden Ave., Ste. 100 Santa Ana, CA 92705 Broker: By: Authorized Represe ati e THESE DECLARATIONS TOGETHER WITH THE COMMON POLICY CONDITIONS, COVERAGE PART DECLARATIONS, UPD (08-07) COVERAGE PART COVERAGE FORM(S) AND FORMS AND ENDORSEMENTS, IF ANY, ISSUED TO FORM A PART THEREOF, COMPLETE THE ABOVE NUMBERED POLICY. EXTENSION OF DECLARATIONS Policy No. BP 1593633D Effective Date: 06/04/2021 12:01 AM STANDARD TIME AT YOUR MAILING ADDRESS FORMS AND ENDORSEMENTS The following forms apply to multiple coverage parts Endt# Revised Description of Endorsements BP0003 01/10 Businessowners Coverage Form BP0155 07/20 California Changes BP0402 01/06 Additional Insured - Managers Or Lessors Of Premises BP0417 01/10 Employment -Related Practices Exclusion BP -103 01/15 Exclusion Of War, Military Action And Terrorism (Coverage For Certain Fire Losses) BP -107 04/08 Actual Cash Value Definition BP -115 07/08 Protective Devices Or Services Provisions BP -118 08/08 California Changes BP -15 07/04 Business Income And Extra Expense Limit BP1505 05/14 Exclusion - Access Or Disclosure Of Confidential Or Personal Information And Data -Related Liability - Limited Bodily Injury Exception Not Included BP -152 01/13 Separation of Insureds Clarification Endorsement BP -17 11/08 Hired Auto And Non -Owned Auto Liability BP -31 11/10 Absolute Earth Movement Exclusion BP -32 11/10 Pre -Existing Or Progressive Damage Exclusion BP -47 11/10 "Equipment Breakdown" Enhancement Endorsement BP -48 05/16 Exclusion Asbestos, Lead Contamination, Absolute Pollution, Mold, Fungus, Bacteria, Virus And Organic Pathogen BP -49 01/13 Absolute Exclusion For Pollution, Organic Pathogen, Silica, Asbestos And Lead BP -504 04/17 Building Tenant Obligations BP -507 04/17 Exclusion - Unmanned Aircraft BP -77B 03/11 Amendment Of Premium Audit Conditions BP -78 05/05 Exclusion - Violation Of Statutes That Govern E -Mails, Faxes, Phone Calls Or Other Methods Of Sending Material Or Information BP -88 04/06 Expanded Definition Of Bodily Injury BP -90 11/10 Amended Definition Jacket 07/19 Policy Jacket L 541 12/20 Extension of Terrorism Coverage tUD (01/95) All other terms and conditions remain unchanged. Page 1 of 1 BUSINESSOWNERS PROPERTY COVERAGE PART DECLARATIONS Policy No. BP 1593633D Effective Date: 06/04/2021 12:01 STANDARD TIME DESCRIPTION OF PREMISES Prem Bldg Location, Construction, Occupancy and Other Information Territory Fire Code 1 1 10413 Los Alamitos Blvd., Los Alamitos, CA 90720 006 0702 Description: Office Covered Causes of Loss: Special Protection Class 1 Construction: Joisted Masonry Square Footage: 1486 Special Deductible: None Special Deductible Type: CQV.ERAGES. PROVIDED --INSURANCE AT THE DESCRIBED PREMISES' APPLIES ONLY FOR COVERAGES FOR WHICH A LIMIT OF INSURANCE Is SHOWN , Limits of Coinsurance % or Prem Bldg Coverage Insurance Deductible Monthly Indemnity + Valuation Premium All Terrorism Coverage $500 $11 1 1 Business Income with Extra Expense $17,500 $0 ALS Included 1 1 Business Personal Property $50,000 $500 RC $137 1 1 Equipment Breakdown Included $500 $73 MINIMUM PREMIUM FOR PROPERTY COVERAGE PART: $11 TOTAL PREMIUM FOR PROPERTY COVERAGE PART: $221 MP - minimum premium + Valuation: ACV - Actual Cash Value; RC - Replacement Cost; RC/ACV - Replacement Cost/ACV Roof FBV - Functional Building Value; AA - Agreed Amount; ALS - Actual Loss Sustained L OSSaRAYABL'E(S): NONE Coverage Form(s)/Part(s) and Endorsements) made a part of this policy at time of issue: See Endorsement EOD (01/95) THESE DECLARATIONS ARE PART OF THE POLICY DECLARATIONS CONTAINING THE NAME OF THE INSURED AND THE POLICY PERIOD. Includes copyrighted material of ISO Commercial Risk Services, Inc., with its permission. BPP150 (02/09) Copyright, ISO Commercial Risk Services, Inc., 1983, 1984, 1988 Page 1 Of 1 BUSINESSOWNERS GENERAL LIABILITY COVERAGE PART DECLARATIONS Policy No. BP 1593633D Effective Date: 06/04/2021 12:01 STANDARD TIME LIMITS OF INSURANCE Liability and Medical Expenses $1,000,000 Medical Expense (per person) $5,000 Damages To Premises Rented To You (Any One Premises) $100,000 Hired and Non -owned Auto Each Occurrence Included Hired and Non -owned Auto Aggregate Included An Aggregate Limit of Liability applies to this Coverage as defined in SECTION II - LIABILITY, paragraph DA. of the Businessowners Coverage Form. LIABILITY DEDUCTIBLE $a ' .LOCATIONS OF ALL PREMISES YOU OWN, RENT OR OCCUPY Location Address Territory 1 10413 Los Alamitos Blvd., Los Alamitos, CA 90720 006 PREMIUM. COMPUTATION Rate Advance Premium Loc Classification Code No. Premium Basis Pr/Co All Other PdCo All Other 1 Non -Owned & Hired Automobile Liability 90099 Flat 0.000 231.000 $0 $231 1 Terrorism Coverage 08811 5.00% of prem. ($452) $23 1 Medical Offices 66561 1,486 Per 1,000 Total 0.000 148.973 $0 $221 Area 1 Additional Insured - Managers or Lessors of 49950 1 Flat 0.000 0.000 Included Included Premises MINIMUM PREMIUM FOR GENERAL LIABILITY COVERAGE PART: $23 TOTAL PREMIUM FOR GENERAL LIABILITY COVERAGE PART: $475 (This Premium maybe subject to adjustment.) MP- minimum premium Coverage Form(s)/Part(s) and Endorsement(s) made a part of this policy at time of issue: See Form EOD (01/95) THESE DECLARATIONS ARE PART OF THE POLICY DECLARATIONS CONTAINING THE NAME OF THE INSURED AND THE POLICY PERIOD. mcwaes copyngmea matenal or I6v commercial KisK Services, Inc., with its permission. BPL150 (02/09) Copyright, ISO Commercial Risk Services, Inc., 1983, 1984, 1988 Page 1 Of 1 BUSINESSOWNERS BP 00 03 0110 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 H. Property Definitions in Section I — Property and Paragraph F. Liability And Medical Expenses Definitions in Section II — Liability. SECTION I — PROPERTY A. Coverage We will pay for direct physical loss of or damage to Covered Property at the premises described in the Declarations caused by or resulting from any Covered Cause of Loss. 1. Covered Property Covered Property includes Buildings as described under Paragraph a. below, Business Personal Property as described under Paragraph b. below, or both, depending on whether a Limit of Insurance is shown in the Declarations for that type of property. Regardless of whether coverage is shown in the Declarations for Buildings, Business Personal Property, or both, there is no coverage for property described under Paragraph 2. Property Not Covered. a. Buildings, meaning the buildings and structures at the premises described in the Declarations, including: (1) Completed additions; (2) Fixtures, including outdoor fixtures; (3) Permanently installed: (a) Machinery; and (b) Equipment; (4) Your personal property in apartments, rooms or common areas furnished by you as landlord; (c) Floor coverings; and (d) Appliances used for refrigerating, ventilating, cooking, dishwashing or laundering; (6) If not covered by other insurance: (a) Additions under construction, alterations and repairs to the buildings or structures; (b) Materials, equipment, supplies and temporary structures, on or within 100 feet of the described premises, used for making additions, alterations or repairs to the buildings or structures. b. Business Personal Property located in or on the buildings at the described premises or in the open (or in a vehicle) within 100 feet of the described premises, including: (1) Property you own that is used in your business; (2) Property of others that is in your care, custody or control, except as otherwise provided in Loss Payment Property Loss Condition Paragraph E.5.d.(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 which you have a contractual responsibility to insure, unless otherwise provided for under Paragraph 1.b.(2); and (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. 2. Property Not Covered Covered Property does not include: (5) Personal property owned by you that is a. Aircraft, automobiles, motortrucks and other used to maintain or service the buildings vehicles subject to motor vehicle or structures or the premises, including: registration; (a) Fire extinguishing equipment; b. "Money" or "securities" except as provided in the: (b) Outdoor furniture; BP 00 03 0110 © Insurance Services Office, Inc., 2009 Page 1 of 44 (1) Money And Securities Optional Coverage; or (2) Employee Dishonesty Optional Coverage; c. Contraband, or property in the course of illegal transportation or trade; d. Land (including land on which the property is located), water, growing crops or lawns; e. Outdoor fences, radio or television antennas (including satellite dishes) and their lead-in wiring, masts or towers, signs (other than signs attached to buildings), trees, shrubs or plants, all except as provided in the: (1) Outdoor Property Coverage Extension; or (2) Outdoor Signs Optional Coverage; f. Watercraft (including motors, equipment and accessories) while afloat; g. Accounts, bills, food stamps, other evidences of debt, accounts receivable or "valuable papers and records"; except as otherwise provided in this policy; h. "Computer(s)" which are 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(s)" while held as "stock"; i. "Electronic data", except as provided under Additional Coverages — Electronic Data. This Paragraph I. does not apply to your "stock" of prepackaged software. j. Animals, unless owned by others and boarded by you, or if owned by you, only as "stock" while inside of buildings. 3. Covered Causes Of Loss (2) Hot water boilers or other water heating equipment caused by or resulting from any condition or event inside such boilers or equipment, other than an explosion. (3) 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 the Optional Coverage for Money and Securities. (4) Property that has been transferred to a person or to a place outside the described premises on the basis of unauthorized instructions. (5) The interior of any 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. b. We will not pay for loss of or damage to the following types of property unless caused by 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: Risks of direct physical loss unless the loss is: (a) Glass that is part of the exterior or interior of a building or structure; Secttionion 1 I; or a. cn Paragraph B. Exclusions in (b) Containers of property held for sale; Se; or b. Limited in Paragraph 4. Limitations in (c) Photographic or scientific instrument Section 1. lenses. 4. Limitations a. We will not pay for loss of or damage to: (1) Steam boilers, steam pipes, steam engines or steam turbines caused by or resulting from any condition or event inside such equipment. But we will pay for loss of or damage to such equipment caused by or resulting from an explosion of gases or fuel within the furnace of any fired vessel or within the flues or passages through which the gases of combustion pass. c. For loss or damage by theft, the following types of property are covered only up to the limits shown: (1) $2,500 for furs, fur garments and garments trimmed with fur. (2) $2,500 for jewelry, watches, watch movements, jewels, pearls, precious and semiprecious stones, bullion, gold, silver, platinum and other precious alloys or metals. This limit does not apply to jewelry and watches worth $100 or less per item. Page 2 of 44 © Insurance Services Office, Inc., 2009 BP 00 03 01 10 (3) $2,500 for patterns, dies, molds and forms. 5. Additional Coverages a. Debris Removal (1) Subject to Paragraphs (3) and (4), we will pay your expense to remove debris of Covered Property caused by or resulting from a Covered Cause of Loss that occurs during the policy period. The expenses will be paid only if they are reported to us in writing within 180 days of the date of direct physical loss or damage. (2) Debris Removal does not apply to costs to: (a) Extract "pollutants" from land or water; or (b) Remove, restore or replace polluted land or water. (3) Subject to the exceptions in Paragraph (4), the following provisions apply: (a) The most 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. (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. (4) We will pay up to an additional $10,000 for debris removal expense, for each location, in any one occurrence of physical loss or damage to Covered Property, if one or both of the following circumstances apply: (a) The total of the actual debris removal expense plus the amount we pay for direct physical loss or damage exceeds the Limit of Insurance on the Covered Property that has sustained loss or damage. (b) The actual debris removal expense exceeds 25% of the sum of the deductible plus the amount that we pay for direct physical loss or damage to the Covered Property that has sustained loss or damage. Therefore, if Paragraphs (4)(a) and/or (4)(b) apply, our total payment for direct physical loss or damage and debris removal expense may reach but will never exceed the Limit of Insurance on the Covered Property that has sustained loss or damage, plus $10,000. (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 Payable $10,000 ($10,000 is 20% of $50,000) The debris removal expense is less than 25% of the sum of the loss payable plus the deductible. The sum of the loss payable and the debris removal expense ($49,500 + $10,000 = $59,500) is less than the Limit of Insurance. Therefore the full amount of debris removal expense is payable in accordance with the terms of Paragraph (3). Example #2 Limit of Insurance $ 90,000 Amount of Deductible $ 500 1 Amount of Loss $ 80,000 Amount of Loss Payable $ 79,500 ($80,000 — $500) Debris Removal Expense $ 30,000 Debris Removal Expense Payable Basic Amount $ 10,500 Additional Amount $ 10,000 The basic amount payable for debris removal expense under the terms of Paragraph (3) is calculated as follows: $80,000 ($79,500 + $500) x.25 = $20,000; capped at $10,500). The cap applies because the sum of the loss payable ($79,500) and the basic amount payable for debris removal expense ($10,500) cannot exceed the Limit of Insurance ($90,000). The additional amount payable for debris removal expense is provided in accordance with the terms of Paragraph (4), because the debris removal expense ($30,000) exceeds 25% of the loss payable plus the deductible ($30,000 is 37.5% of $80,000), and because the sum of the loss payable and debris removal expense ($79,500 + $30,000 = $109,500) would exceed the Limit of Insurance ($90,000). The additional amount of covered debris BP 00 03 01 10 © Insurance Services Office, Inc., 2009 Page 3 of 44 removal expense is $10,000, the renovation if the abrupt collapse maximum payable under Paragraph (4). occurs during the course of the Thus the total payable for debris construction, remodeling or removal expense in this example is renovation. $20,500; $9,500 of the debris removal (d) Use of defective material or methods expense is not covered. in construction, remodeling or b. Preservation Of Property renovation if the abrupt collapse If it is necessary to move Covered Properly occurs after the construction, from the described premises to preserve it remodeling or renovation is from loss or damage by a Covered Cause complete, but only if the collapse is of Loss, we will pay for any direct physical caused in part by: loss of or damage to that property: (i) A cause of loss listed in (1) While it is being moved or while Paragraph (2)(a) or (2)(b); temporarily stored at another location; (ii) One or more of the "specified and causes of loss"; (2) Only if the loss or damage occurs within (iii) Breakage of building glass; 30 days after the property is first moved. (Iv) Weight of people or personal c. Fire Department Service Charge property; or When the fire department is called to save (v) Weight of rain that collects on a or protect Covered Property from a roof. Covered Cause of Loss, we will pay up to $2,500, unless a different limit is shown in (3) This Additional Coverage — Collapse the Declarations, for your liability for fire does not apply to: department service charges: (a) A building or any part of a building (1) Assumed by contract or agreement prior that is in danger of falling down or to loss; or caving in; (2) Required by local ordinance. (b) A part of a building that is standing, even if it has separated from another d. Collapse part of the building; or The coverage provided under this (c) A building that is standing or any part Additional Coverage — Collapse applies of a building that is standing, even if only to an abrupt collapse as described and it shows evidence of cracking, limited in Paragraphs d.(1) through d.(7). bulging, sagging, bending, leaning, (1) For the purpose of this Additional settling, shrinkage or expansion. Coverage — Collapse, abrupt collapse (4) With respect to the following property: means an abrupt failing down or caving (a) Awnings; in of a building or any part of a building With the result that the building or part of (b) Gutters and downspouts; the building cannot be occupied for its (c) Yard fixtures; intended purpose. (d) Outdoor swimming pools; (2) We will pay for direct physical loss or damage to Covered Property, caused by (e) Piers, wharves and docks; abrupt collapse of a building or any part (fi) Beach or diving platforms or of a building that is insured under this appurtenances; policy or that contains Covered Property (g) Retaining walls; and insured under this policy, if such collapse is caused by one or more of the (h) Walks, roadways and other paved following: surfaces; (a) Building decay that is hidden from if an abrupt collapse is caused by a view, unless the presence of such cause of loss listed in Paragraphs (2)(a) decay is known to an insured prior to through (2)(d), we will pay for loss or collapse; damage to that property only if such loss (b) Insect or vermin damage that is or damage is a direct result of the abrupt collapse of a building insured under this hidden from view, unless the policy and the property is Covered presence of such damage is known Property under this policy. to an insured prior to collapse; (5) If personal property abruptly falls down (c) Use of defective material or methods or caves in and such collapse is not the .in construction, remodeling or result of abrupt collapse of a building, Page 4 of 44 © Insurance Services Office, Inc., 2009 BP 00 03 01 10 we will pay for loss or damage to restoration". The suspension must Covered Property caused by such be caused by direct physical loss of collapse of personal property only if: or damage to property at the (a) The collapse of personal property described premises. The loss or was caused by a cause of loss listed damage must be caused by or result in Paragraphs (2)(a) through (2)(d) from a Covered Cause of Loss. With of this Additional Coverage; respect to loss of or damage to personal property in the open or (b) The personal property which personal property in a vehicle, the collapses is inside a building; and described premises include the area (c) The property which collapses is not within 100 feet of the site at which of a kind listed in Paragraph (4), the described premises are located. regardless of whether that kind of With respect to the requirements set property is considered to be personal forth in the preceding paragraph, if property or real property. you occupy only part of the site at The coverage stated in this Paragraph which the described premises are (5) does not apply to personal property if located, your premises means: marring and/or scratching is the only (i) The portion of the building which damage to that personal property you rent, lease or occupy; and caused by the collapse. (il) Any area within the building or on (6) This Additional Coverage — Collapse the site at which the described does not apply to personal property that premises are located, if that area has not abruptly fallen down or caved in, services, or is used to gain even if the personal property shows access to,. the described evidence of cracking, bulging, sagging, premises. bending, leaning, settling, shrinkage or (b) We will only pay for loss of Business expansion. Income that you sustain during the (7) This Additional Coverage — Collapse will "period of restoration" and that not increase the Limits of Insurance occurs within 12 consecutive months provided in this policy. after the date of direct physical loss (8) The term Covered Cause of Loss or damage. We will only pay for includes the Additional Coverage — ordinary payroll expenses for 60 Collapse as described and limited in days following the date of direct Paragraphs d.(1) through d.(7). physical loss or damage, unless a e. Water Damage, Other Liquids, Powder greater number of days is shown in Or Molten Material Damage the Declarations. If loss or damage caused by or resulting (c) Business Income means the: from covered water or other liquid, powder (i) Net Income (Net Profit or Loss or molten material occurs, we will also pay before income taxes) that would the cost to tear out and replace any part of have been earned or incurred if the building or structure to repair damage to no physical loss or damage had the system or appliance from which the occurred, but not including any water or other substance escapes. Net Income that would likely have We will not pay the cost to repair any defect been earned as a result of an that caused the loss or damage; but we will increase in the volume of business due to favorable pay the cost to repair or replace damaged business conditions caused by parts of fire extinguishing equipment if the the impact of the Covered Cause damage: of Loss on customers or on other (1) Results in discharge of any substance businesses; and from an automatic fire protection (ii) Continuing normal operating system; or expenses incurred, including (2) Is directly caused by freezing. payroll. f. Business Income (d) Ordinary payroll expenses: (1) Business Income (i) Means payroll expenses for all (a) We will pay for the actual loss of your employees except: Business Income you sustain due to L Officers; the necessary suspension of your ii. Executives; "operations" during the "period of BP 00 03 01 10 © Insurance Services Office, Inc., 2009 Page 5 of 44 iii. Department Managers; iv. Employees under contract; and v. Additional Exemptions shown in the Declarations as: • Job Classifications; or • Employees. (ii) Include: I. Payroll; ii. Employee benefits, if directly related to payroll; iii. FICA payments you pay; iv. Union dues you pay; and v. Workers' compensation premiums. (2) Extended Business Income (a) If the necessary suspension of your "operations" produces a Business Income loss payable under this policy, we will pay for the actual loss of Business Income you incur during the period that: (i) Begins on the date property except finished stock is actually repaired, rebuilt or replaced and "operations" are resumed; and (ii) Ends on the earlier of: i. The date you could restore your "operations", with reasonable speed, to the level which would generate the Business Income amount that would have existed if no direct physical loss or damage had occurred; or ii. 30 consecutive days after the date determined in Paragraph (a)(i) above, unless a greater number of consecutive days is shown in the Declarations. However, Extended Business Income does not apply to loss of Business Income incurred as a result of unfavorable business conditions caused by the impact of the Covered Cause of Loss in the area where the described premises are located. (b) Loss of Business Income must be caused by direct physical loss or damage at the described premises caused by or resulting from any Covered Cause of Loss. (3) With respect to the coverage provided in this Additional Coverage, suspension means: (a) The partial slowdown or complete cessation of your business activities; or (b) That a part or all of the described premises is rendered untenantable, if coverage for Business Income applies. (4) This Additional Coverage is not subject to the Limits of Insurance of Section I — Property. g. Extra Expense (1) We will pay necessary Extra Expense you incur during the "period of restoration" that you would not have incurred if there had been no direct physical loss or damage to property at the described premises. The loss or damage must be caused by or result from a Covered Cause of Loss. 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 100 feet of the site at which the described premises are located. With respect to the requirements set forth in the preceding paragraph, if you occupy only part of the site at which the described premises are located, your premises means: (a) The portion of the building which you rent, lease or occupy; and (b) Any area within the building or on the site at which the described premises are located, if that area services, or is used to gain access to, the described premises. (2) Extra Expense means expense incurred: (a) To avoid or minimize the suspension of business and to continue "operations": (i) At the described premises; or (ii) At replacement premises or at temporary locations, including relocation expenses, and costs to equip and operate the replacement or temporary locations. (b) To minimize the suspension of business if you cannot continue "operations". (c) To: (i) Repair or replace any property; or (ii) Research, replace or restore the lost information on damaged "valuable papers and records"; Page 6 of 44 © Insurance Services Office, Inc., 2009 BP 00 03 01 10 to the extent it reduces the amount of loss that otherwise would have been payable under this Additional Coverage or Additional Coverage f. Business Income. (3) With respect to the coverage provided in this Additional Coverage, suspension means: (a) The partial slowdown or complete cessation of your business activities; or (b) That a part or all of the described premises is rendered untenantable, if coverage for Business Income applies. (4) We will only pay for Extra Expense that occurs within 12 consecutive months after the date of direct physical loss or damage. This Additional Coverage is not subject to the Limits of Insurance of Section I — Property. h. Pollutant Clean-up And Removal We will pay your expense to extract "pollutants" from land or water at the described premises if the discharge, dispersal, seepage, migration, release or escape of the "pollutants" is caused by or results from a Covered Cause of Loss that occurs during the policy period. The expenses will be paid only if they are reported to us in writing within 180 days of the date on which the Covered Cause of Loss occurs. This Additional Coverage does not apply to costs to test for, monitor or assess the existence, concentration or effects of "pollutants". But we will pay for testing which is performed in the course of extracting the "pollutants" from the land or water. The most we will pay for each location under this Additional Coverage is $10,000 for the sum of all such expenses arising out of Covered Causes of Loss occurring during each separate 12 -month period of this policy. 1. Civil Authority the damage, and the described premises are within that area but are not more than one mile from the damaged property; and (2) The action of civil authority is taken in response to dangerous physical conditions resulting from the damage or continuation of the Covered Cause of Loss that caused the damage, or the action is taken to enable a civil authority to have unimpeded access to the damaged property. Civil Authority coverage for Business Income will begin 72 hours after the time of the first action of civil authority that prohibits access to the described premises and will apply for a period of up to four consecutive weeks from the date on which such coverage began. Civil Authority coverage for necessary Extra Expense will begin immediately after the time of the first action of civil authority that prohibits access to the described premises and will end: (1) Four consecutive weeks after the date of that action; or (2) When your Civil Authority coverage for Business Income ends; whichever is later. The definitions of Business Income and Extra Expense contained in the Business Income and Extra Expense Additional Coverages also apply to this Civil Authority Additional Coverage. The Civil Authority Additional Coverage is not subject to the Limits of Insurance of Section I — Property. j. Money Orders And "Counterfeit Money" We will pay for loss resulting directly from your having accepted in good faith, in exchange for merchandise, "money" or services: (1) Money orders issued by any post office, express company or bank that are not paid upon presentation; or (2) "Counterfeit money" that is acquired during the regular course of business. When a Covered Cause of Loss causes The most we will pay for any loss under this damage to property other than property at Additional Coverage is $1,000. the described premises, we will pay for the k. Forgery Or Alteration actual loss of Business Income you sustain (1) We will pay for loss resulting directly and necessary Extra Expense caused by from forgery or alteration of, any check, action of civil authority that prohibits access draft, promissory note, bill of exchange to the described premises, provided that or similar written promise of payment in both of the following apply: "money", that you or your agent has (1) Access to the area immediately issued, or that was issued by someone surrounding the damaged property is who impersonates you or your agent. prohibited by civil authority as a result of (2) If you are sued for refusing to pay the BP 00 03 01 10 © Insurance Services Office, Inc., 2009 Page 7 of 44 check, draft, promissory note, bill of exchange or similar written promise of payment in "money", on the basis that it has been forged or altered, and you have our written consent to defend against the suit, we will pay for any reasonable legal expenses that you incur in that defense. (3) For the purpose of this coverage, check includes a substitute check as defined in the Check Clearing for the 21st Century Act, and will be treated the same as the original it replaced. (4) The most we will pay for any loss, including legal expenses, under this Additional Coverage is $2,500, unless a higher Limit of Insurance is shown in the Declarations. I. Increased Cost Of Construction (1) This Additional Coverage applies only to buildings insured on a replacement cost basis. (2) In the event of damage by a Covered Cause of Loss to a building that is Covered Property, we will pay the increased costs incurred to comply with enforcement of an ordinance or law in the course of repair, rebuilding or replacement of damaged parts of that property, subject to the limitations stated in Paragraphs (3) through (9) of this Additional Coverage. (3) The ordinance or law referred to in Paragraph (2) of this Additional Coverage isan ordinance or law that regulates the construction or repair of buildings or establishes zoning or land use requirements at the described premises, and is in force at the time of loss. (4) Under this Additional Coverage, we will not pay any costs due to an ordinance or law that: (a) You were required to comply with before the loss, even when the building was undamaged; and (b) You failed to comply with. (5) Under this Additional Coverage, we will not pay for: (a) The enforcement of any ordinance or law which requires demolition, repair, replacement, reconstruction, remodeling or remediation of property due to contamination by "pollutants" or due to the presence, growth, proliferation, spread or any activity of "fungi", wet rot or dry rot; or (b) Any costs associated with the enforcement of an ordinance or law which requires any insured or others to test for, monitor, clean up, remove, contain, treat, detoxify or neutralize, or in any way respond to or assess the effects of "pollutants", "fungi", wet rot or dry rot. (6) The most we will pay under this Additional Coverage, for each described building insured under Section 1— Property, is $10,000. If a damaged building(s) is covered under a blanket Limit of Insurance which applies to more than one building or item of property, then the most we will pay under this Additional Coverage, for each damaged building, is $10,000. The amount payable under this Additional Coverage is additional insurance. (7) With respect to this Additional Coverage: (a) We will not pay for the Increased Cost of Construction: (i) Until the property is actually repaired or replaced, at the same or another premises; and Unless the repairs or replacement are made as soon as reasonably possible after the loss or damage, not to exceed two years. We may extend this period in writing during the two years. (b) If the building is repaired or replaced at the same premises, or if you elect to rebuild at another premises, the most we will pay for the Increased Cost of Construction is the increased cost of construction at the same premises. (c) If the ordinance or law requires relocation to another premises, the most we will pay for the Increased Cost of Construction is the increased cost of construction at the new premises. (8) This Additional Coverage is not subject to the terms of the Ordinance Or Law Exclusion, to the extent that such Exclusion would conflict with the provisions of this Additional Coverage. (9) The costs addressed in the Loss Payment Property Loss Condition in Section I — Property do not include the increased cost attributable to enforcement of an ordinance or law. The amount payable under this Page 8 of 44 © Insurance Services Office, Inc., 2009 BP 00 03 01 10 Additional Coverage, as stated in Paragraph (6) of this Additional Coverage, is not subject to such limitation. m. Business Income From Dependent Properties (1) We will pay for the actual loss of Business Income you sustain due to physical loss or damage at the premises of a dependent property caused by or resulting from any Covered Cause of Loss. However, this Additional Coverage does not apply when the only loss to dependent property is loss or damage to "electronic data", including destruction or corruption of "electronic data". If the dependent property sustains loss or damage to "electronic data" and other property, coverage under this Additional Coverage will not continue once the other property is repaired, rebuilt or replaced. The most we will pay under this Additional Coverage is $5,000 unless a higher Limit of Insurance is indicated in the Declarations. (2) We will reduce the amount of your Business Income loss, other than Extra Expense, to the extent you can resume "operations", in whole or in part, by using any other available: (a) Source of materials; or (b) Outlet for your products. (3) If you do not resume "operations", or do not resume "operations" as quickly as possible, we will pay based on the length of time it would have taken to resume "operations" as quickly as possible. (4) Dependent property means property owned by others whom you depend on to: (a) Deliver materials or services to you, or to others for your account. But services does not mean water, communication or power supply services; (b) Accept your products or services; (c) Manufacture your products for delivery to your customers under contract for sale; or (a) Begins 72 hours after the time of direct physical loss or damage caused by or resulting from any Covered Cause of Loss at the premises of the dependent property; and (b) Ends on the date when the property at the premises of the dependent property should be repaired, rebuilt or replaced with reasonable speed and similar quality. (6) The Business Income coverage period, as stated in Paragraph (5), does not include any increased period required due to the enforcement of any ordinance or law that: (a) Regulates the construction, use or repair, or requires the tearing down of any property; or (b) Requires any insured or others to test for, monitor, clean up, remove, contain, treat, detoxify or neutralize, or in any way respond to, or assess the effects of "pollutants". The expiration date of this policy will not reduce the Business Income coverage period. (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 (1) We will pay for expenses incurred to put up temporary plates or board up openings if repair or replacement of damaged glass is delayed. (2) We will pay for expenses incurred to 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 Extinguisher Systems Recharge Expense (1) We will pay: (a) The cost of recharging or replacing, whichever is less, your fire extinguishers and fire extinguishing systems (including hydrostatic testing if needed) if they are discharged on or within 100 feet of the described premises; and (d) Attract customers to your business. (b) For loss or damage to Covered The dependent property must be located Property if such loss or damage is the result of an accidental discharge in the coverage territory of this policy. of chemicals from a fire extinguisher (5) The coverage period for Business or a fire extinguishing system. Income under this Additional Coverage: BP 00 03 01 10 © Insurance Services Office, Inc., 2009 Page 9 of 44 (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 $5,000 in any one occurrence. p. Electronic Data (1) Subject to the provisions of this Additional Coverage, we will pay for the cost to replace or restore "electronic data" which has been destroyed or corrupted by a Covered Cause of Loss. To the extent that "electronic data" is not replaced or restored, the loss will be valued at the cost of replacement of the media on which the "electronic data" was stored, with blank media of substantially identical type. (2) The Covered Causes of Loss applicable to Business Personal Property include a computer virus, harmful code or similar instruction introduced into or enacted on a computer system (including "electronic data") or a network to which it is connected, designed to damage or destroy any part of the system or disrupt its normal operation. But there is no coverage for loss or damage caused by or resulting from manipulation of a computer system (including "electronic data") by any employee, including a temporary or leased employee, or by an entity retained by you, or for you, to inspect, design, install, modify, maintain, repair or replace that system. (3) The most we will pay under this Additional Coverage — Electronic Data for all loss or damage sustained in any one policy year, regardless of the number of occurrences of loss or damage or the number of premises, locations or computer systems involved, is $10,000, unless a higher Limit of Insurance is shown in the Declarations. If loss payment on the first occurrence does not exhaust this amount, then the balance is available for subsequent loss or damage sustained in, but not after, that policy year. With respect to an occurrence which begins in one policy year and continues or results in additional loss or damage in a subsequent policy year(s), all loss or damage is deemed to be sustained in the policy year in which the occurrence began. q. Interruption Of Computer Operations (1) Subject to all provisions of this Additional Coverage, you may extend the insurance that applies to Business Income and Extra Expense to apply to a suspension of 'operations" caused by an interruption in computer operations due to destruction or corruption of "electronic data" due to a Covered Cause of Loss. (2) With respect to the coverage provided under this Additional Coverage, the Covered Causes of Loss are subject to the following: (a) Coverage under this Additional Coverage — Interruption Of Computer Operations is limited to the "specified causes of loss" and Collapse. (b) If the Businessowners Coverage Form is endorsed to add a Covered Cause of Loss, the additional Covered Cause of Loss does not apply to the coverage provided under this Additional Coverage. (c) The Covered Causes of Loss include a computer virus, harmful code or similar instruction introduced into or enacted on a computer system (including "electronic data") or a network to which it is connected, designed to damage or destroy any part of the system or disrupt its normal operation. But there is no coverage for an interruption related to manipulation of a computer system (including "electronic data") by any employee, including a temporary or leased employee, or by an entity retained by you, or for you, to inspect, design, install, modify, maintain, repair or replace that system. (3) The most we will pay under this Additional Coverage — Interruption Of Computer Operations for all loss sustained and expense incurred in any one policy year, regardless of the number of interruptions or the number of premises, locations or computer systems involved, is $10,000 unless a higher Limit of Insurance is shown in the Declarations. If loss payment relating to the first interruption does not exhaust this amount, then the balance is available for loss or expense sustained or incurred as a result of subsequent interruptions in that policy year. A balance remaining at the end of a policy year does not increase the amount of insurance in the next policy year. With respect to any interruption which begins in one policy year and continues or results in additional loss or expense in a subsequent policy year(s), all loss and Page 10 of 44 © Insurance Services Office, Inc., 2009 BP 00 03 0110 expense is deemed to be sustained or incurred in the policy year in which the interruption began. (4) This Additional Coverage —Interruption Of Computer Operations does not apply to loss sustained or expense incurred after the end of the "period of restoration", even if the amount of insurance stated in (3) above has not been exhausted. (5) Coverage for Business Income does not apply when a suspension of "operations" is caused by destruction or corruption of "electronic data", or any loss or damage to "electronic data", except as provided under Paragraphs (1) through (4) of this Additional Coverage. (6) Coverage for Extra Expense does not apply when action is taken to avoid or minimize a suspension of "operations" caused by destruction or corruption of "electronic data", or any loss or damage to "electronic data", except as provided under Paragraphs (1) through (4) of this Additional Coverage. r. Limited Coverage For "Fungi", Wet Rot Or Dry Rot (1) The coverage described in Paragraphs r.(2) and r.(6) only applies when the "fungi", wet rot or dry rot are the result of a "specified cause 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. (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 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 are present. (3) The coverage described under this Limited Coverage is limited to $15,000. 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 of "specified causes of loss" (other than fire or lightning) which take place in a 12 -month period (starting with the beginning of the present annual 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 $15,000 even if the "fungi", wet rot or dry rot continues to be present or active, or recurs, in a later policy period. (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 under the Water Damage, Other Liquids, Powder Or Molten Material Damage or Collapse Additional Coverages. (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 Business Income and/or Extra Expense Additional Coverage. (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 the Business Income and/or 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 rot or dry rot, but remediation of "fungi", BP 00 03 01 10 © Insurance Services Office, Inc., 2009 Page 11 of 44 wet rot or 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. 6. Coverage Extensions In addition to the Limits of Insurance of Section — Property, you may extend the insurance provided by this policy as provided below. 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 100 feet of the described premises. a. Newly Acquired Or Constructed Property (1) Buildings If this policy covers Buildings, you may extend that insurance to apply to: (a) Your new buildings while being built on the described premises; and (b) Buildings you acquire at premises other than the one described, intended for: (i) Similar use as the building described in the Declarations; or (ii) Use as a warehouse. The most we will pay for loss or damage under this Extension is $250,000 at each building. (2) Business Personal Property If this policy covers Business Personal Property, you may extend that insurance to apply to: (a) Business Personal Property, including such property that you newly acquire, at any location you acquire; (b) Business Personal Property, including such property that you newly acquire, located at your newly constructed or acquired buildings at the location described in the Declarations; or (c) Business Personal Property that you newly acquire, located at the described premises. under this Extension is $100,000 at each building. (3) Period Of Coverage With respect to insurance on or at each newly acquired or constructed property, coverage will end when any of the following first occurs: (a) This policy expires; (b) 30 days expire after you acquire the property or begin construction of that part of the building that would qualify as covered property; or (c) You report values to us. We will charge you additional premium for values reported from the date you acquire the property or begin construction of that part of the building that would qualify as covered property. b. Personal Property Off -premises You may extend the insurance provided by this policy to apply to your Covered Property, other than "money" and "securities", "valuable papers and records" or accounts receivable, while it is in the course of transit or at a premises you do not own, lease or operate. The most we will pay for loss or damage under this Extension is $10,000. c. Outdoor Property You may extend the insurance provided by this policy to apply to your outdoor fences, radio and television antennas (including satellite dishes), signs (other than signs attached to buildings), trees, shrubs and plants, including debris removal expense. Loss or damage must be caused by or result from any of the following causes of loss: (1) Fire; (2) Lightning; (3) Explosion; (4) Riot or Civil Commotion; or (5) Aircraft. The most we will pay for loss or damage under this Extension is $2,500, unless a higher Limit of Insurance for Outdoor Property is shown in the Declarations, but not more than $1,000 for any one tree, shrub or plant. d. Personal Effects This Extension does not apply to You may extend the insurance that applies personal property that you temporarily to Business Personal Property to apply to acquire in the course of installing or personal effects owned by you, your performing work on such property or officers, your partners or "members", your your wholesale activities. "managers" or your employees. This The most we will pay for loss or damage extension does not apply to: Page 12 of 44 © Insurance Services Office, Inc., 2009 BP 00 03 01 10 (1) Tools or equipment used in your (f) Paragraph 13.2.m.(2), Errors Or business; or Omissions; and (2) Loss or damage by theft. (g) Paragraph 6.3. The most we will pay for loss or damage f. Accounts Receivable under this Extension is $2,500 at each described premises. (1) You may extend the insurance that applies to Business Personal Property e. Valuable Papers And Records to apply to accounts receivable. We will (1) You may extend the insurance that pay: applies to Business Personal Property (a) All amounts due from your to apply to direct physical loss or customers that you are unable to damage to "valuable papers and collect; records" that you own, or that are in (b) Interest charges on any loan your care, custody or control caused by or resulting from a Covered Cause of required to offset amounts you are Loss. This Coverage Extension unable to collect pending our payment of these amounts; includes the cost to research, replace or restore the lost information on "valuable (c) Collection expenses in excess of papers and records" for which your normal collection expenses that duplicates do not exist. are made necessary by loss or (2) This Coverage Extension does not apply damage; and to: (d) Other reasonable expenses that you (a) Property held as samples or for incur to reestablish your records of accounts receivable; delivery after sale; and (b) Property in storage away from the ` that result from direct physical loss or damage by any Covered Cause of Loss premises shown in the Declarations. to your records of accounts receivable. (3) The most we will pay under this (2) The most we will pay underthis Coverage Extension for loss or damage "valuable Coverage Extension for loss or damage to papers and records" in any in any one occurrence at the described one occurrence at the described premises is $10,000, unless a higher premises is $10,000, unless a higher Limit of Insurance for accounts Limit of Insurance for "valuable papers receivable is shown in the Declarations. and records is shown in the Declarations. For accounts receivable not at the For "valuable papers and records" not at described premises, the most we will pay is $5,000. the described premises, the most we will pay is $5,000. (3) Paragraph B. Exclusions in Section 1— „ (4) Loss or damage to valuable papers and Property does not apply to this Coverage Extension except for:. records" will be valued at the cost of restoration or replacement of the lost or (a) Paragraph B.1.c., Governmental damaged information. To the extent Action; that the contents of the "valuable papers (b) Paragraph B.1.d., Nuclear Hazard; and records" are not restored, the valuable papers and records will be (c) Paragraph B.1.f.,War And Military valued at the cost of replacement with Action; blank materials of substantially identical (d) Paragraph 13.2.f., Dishonesty; type. (e) Paragraph B.2.g., False Pretense; (5) Paragraph B. Exclusions in Section 1— (f) Paragraph B.3.; and Property does not apply to this Coverage Extension except for: (g) Paragraph B.6., Accounts Receivable Exclusion. (a) Paragraph B.1.c., Governmental B. Exclusions Action; (b) Paragraph B.1.d., Nuclear Hazard; 1. We will not pay for loss or damage caused directly or indirectly by any of the following. (c) Paragraph 13.11, War And Military Such loss or damage is excluded regardless of Action; any other cause or event that contributes (d) Paragraph B.2.f., Dishonesty; concurrently or in any sequence to the loss. (e) Paragraph B.2.g., False Pretense; These exclusions apply whether or not the loss event results in widespread damage or affects BP 00 03 01 10 © Insurance Services Office, Inc., 2009 Page 13 of 44 a substantial area. a. Ordinance Or Law (1) The enforcement of 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. (2) This exclusion, Ordinance Or Law, applies whether the loss results from: (a) An ordinance or law that is enforced even if the property has not been damaged; or (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. b. Earth Movement (1) Earthquake, including 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) through (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. All volcanic eruptions that occur within 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. 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 policy. 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 service 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 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(s)" and "electronic Page 14 of 44 © Insurance Services Office, Inc., 2009 BP 00 03 01 10 data". 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 and 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; or (5) Waterborne material carried or otherwise moved by any of the water referred to in Paragraph (1), (3) or (4), or material carried or otherwise moved by mudslide or mudflow. This exclusion applies regardless of whether any of the above, in Paragraphs (1) through (5), is caused by an act of nature or is otherwise caused. An example 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 any of the above, in Paragraphs (1) through (5), results in fire, explosion or sprinkler leakage, we will pay for the loss or damage caused by that fire, explosion or sprinkler leakage. h. Certain Computer-related Losses belonging to any insured or to others: (i) "Computer" hardware, including microprocessors or other electronic data processing equipment as may be described elsewhere in this policy; (ii) "Computer" application software or other "electronic data" as may be described elsewhere in this policy; (iii) "Computer" operating systems and related software; (iv) "Computer" networks; (v) Microprocessors ("computer" chips) not part of any "computer" system; or { (vi) Any other computerized or electronic equipment or components; or (b) Any other products, and any services, data or functions that directly or indirectly use or rely upon, in any manner, any of the items listed in Paragraph (a) above; due to the inability to correctly recognize, distinguish, interpret or accept one or more dates or times. An example is the inability of computer software to recognize the year 2000. (2) Any advice, consultation, design, evaluation, inspection, installation, maintenance, repair, replacement or supervision provided or done by you or for you to determine, rectify or test for, any potential or actual problems described in Paragraph (1) above. However, if excluded loss or damage, as described in Paragraph (1) above results in a "specified cause of loss" under Section I — Property, we will pay only for the loss or damage caused by such "specified cause of loss". We will not pay for repair, replacement or modification of any items in Paragraph (1)(a) or (1)(b) to correct any deficiencies or change any features. I. "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 result in a "specified cause of loss", we will pay for the loss or damage caused by that "specified cause of loss". (1) The failure, malfunction or inadequacy This exclusion does not apply: of: (a) Any of the following, whether (1) When "fungi", wet rot or dry rot result from fire or lightning; or BP 00 03 01 10 © Insurance Services Office, Inc., 2009 Page 15 of 44 (2) To the extent that coverage is provided in the Limited Coverage For "Fungi", Wet Rot Or Dry Rot Additional Coverage, with respect to loss or damage by a cause of loss other than fire or lightning. j. 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) 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 Exclusion i.; (3) With respect to any loss or damage subject to the exclusion in Paragraph (1), such exclusion supersedes any exclusion relating to "pollutants". 2. We will not pay for loss or damage caused by or resulting from any of the following: a. Electrical Apparatus Artificially generated electrical, magnetic or electromagnetic energy that damages, disturbs, disrupts or otherwise interferes With any: (1) Electrical or electronic wire, device, appliance, system or network; or (2) Device, appliance, system or network utilizing cellular or satellite technology. For the purpose of this exclusion, electrical, magnetic or electromagnetic energy includes but is not limited to: (1) Electrical current, including arcing; (2) Electrical charge produced or conducted by a magnetic or electromagnetic field; (3) Pulse of electromagnetic energy; or (4) Electromagnetic waves or microwaves. But if fire results, we will pay for the loss or damage caused by fire. We will pay for loss or damage to "computer(s)" due to artificially generated electrical, magnetic or electromagnetic energy if such loss or damage is caused by or results from: (1) An occurrence that took place within 100 feet of the described premises; or c. Smoke, Vapor, Gas Smoke, vapor or gas from agricultural smudging or industrial operations. d. Steam Apparatus Explosion of steam boilers, steam pipes, steam engines or steam turbines owned or leased by you, or operated under your control. But if explosion of steam boilers, steam pipes, steam engines or steam turbines results in fire or combustion explosion, we will pay for the loss or damage caused by that fire or combustion explosion. We will also pay for loss or damage caused by or resulting from the explosion of gases or fuel within the furnace of any fired vessel or within the flues or passages through which the gases of combustion pass. e. 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. f. Dishonesty Dishonest or criminal acts by you, anyone else with an interest in the property, or any of your or their 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. With respect to accounts receivable and "valuable papers and records"., this exclusion does not apply to carriers for hire. This exclusion does not apply to coverage that is provided under the Employee Dishonesty Optional Coverage. (2) Interruption of electric power supply, g. False Pretense power surge, blackout or brownout if the Voluntary parting with any property by you cause of such occurrence took place or anyone else to whom you have entrusted within 100 feet of the described the property if induced to do so by any premises. fraudulent scheme, trick, device or false b. Consequential Losses pretense. Delay, loss of use or loss of market. h. Exposed Property Page 16 of 44 © Insurance Services Office, Inc., 2009 BP 00 03 01 10 Rain, snow, ice or sleet to personal property in the open. Collapse (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 Paragraph i.(1)(a) or L(1)(b). 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 i., does not apply: (a) To the extent that coverage is provided under the Additional Coverage — Collapse; or (b) To collapse caused by one or more of the following: (i) 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. j. Pollution We will not pay for loss or damage caused by or resulting from the 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 a "specified cause of loss", we will pay for the loss or damage caused by that "specified cause of loss". k. 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. I.. Other Types Of Loss (1) Wear and tear; (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; (6) Mechanical breakdown, including rupture or bursting caused by centrifugal force. This exclusion does not apply with respect to the breakdown of "computer(s)'; (7) The following causes of loss to personal property: (a) Dampness or dryness of 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) through (7) above results in a "specified cause of loss" or building glass breakage, we will pay for the loss or damage caused by that "specified cause of loss" or building glass breakage. m. Errors Or Omissions Errors or omissions in: (1) Programming, processing or storing data, as described under "electronic data" or in any "computer" operations; or (2) Processing or copying "valuable papers and records". 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. n. Installation, Testing, Repair Errors or deficiency in design, installation, testing, maintenance, modification or repair of your "computer" system including "electronic data". 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. o. Electrical Disturbance Electrical or magnetic injury, disturbance or erasure of "electronic data", except as provided for under the Additional Coverages of Section I — Property. However, we will pay for direct loss or damage caused by lightning. p. Continuous Or Repeated Seepage Or Leakage Of Water BP 00 03 01 10 © Insurance Services Office, Inc., 2009 Page 17 of 44 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. 3. We will not pay for loss or damage caused by or resulting from any of the following Paragraphs a. through c. But if an excluded cause of loss that is listed in Paragraphs a. through c. 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 Weather conditions. But this exclusion only applies if weather conditions contribute in any way with a cause or event excluded in Paragraph B.I. above 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. 5. Business Income And Extra Expense Exclusions a. We will not pay for: (1) Any Extra Expense, or increase of Business Income loss, caused by or resulting from: (a) 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; or (b) 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" and any extension of the "period of restoration" in accordance with the terms of the Extended Business Income Additional Coverage. (2) Any other consequential loss. b. With respect to this exclusion, suspension means: (1) The partial slowdown or complete cessation of your business activities; and (2) That a part or all of the described premises is rendered untenantable, if coverage for Business Income applies. 6. Accounts Receivable Exclusion The following additional exclusion applies to the Accounts Receivable Coverage Extension: We will not pay for: a. Loss or damage caused by or resulting from alteration, falsification, concealment or destruction of records of accounts receivable done to conceal the wrongful giving, taking or withholding of "money", "securities" or other property. This exclusion applies only to the extent of the wrongful giving, taking or withholding. b. Loss or damage caused by or resulting from bookkeeping, accounting or billing errors or omissions. c. Any loss or damage that requires any audit of records or any inventory computation to prove its factual existence. 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 most we will pay for loss of or damage to outdoor signs attached to buildings is $1,000 per sign in any one occurrence. Page 18 of 44 © Insurance Services Office, Inc., 2009 BP 00 03 01 10 3. 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 the Limits of Insurance of Section I — Property: a. Fire Department Service Charge; b. Pollutant Clean-up And Removal; c. Increased Cost Of Construction; d. Business Income From Dependent Properties; e. Electronic Data; and f. Interruption Of Computer Operations. 4. Building Limit—Automatic Increase a. In accordance with Paragraph CA.b., the Limit of Insurance for Buildings will automatically increase by 8%, unless a different percentage of annual increase is shown in the Declarations. b. The amount of increase is calculated as follows: (1) Multiply the Building limit that applied on the most recent of the policy inception date, the policy anniversary date, or any other policy change amending the Building limit by: (a) The percentage of annual increase shown in the Declarations, expressed as a decimal (example: 7% is .07); or (b) .08, if no percentage of annual increase is shown in the Declarations; and (2) Multiply the number calculated in accordance with b.(1) by the number of days since the beginning of the current policy year, or the effective date of the most recent policy change amending the Building limit, divided by 365. Example: If: The applicable Building .limit is $100,000. The annual percentage increase is 8%. The number of days since the beginning of the policy year (or last policy change) is 146. The amount of increase is $100,000 x .08 x 146 - 365 = $3,200. 5. Business Personal Property Limit— Seasonal Increase the Declarations; or (2) 25% if no Business Personal Property — Seasonal Increase percentage is shown in the Declarations; to provide for seasonal variances. b. The increase described in Paragraph 5.a will apply only if the Limit of Insurance shown for Business Personal Property in the Declarations is at least 100% of your average monthly values during the lesser of: (1) The 12 months immediately preceding the date the loss or damage occurs;,or (2) The period of time you have been in business as of the date the loss or damage occurs. D. Deductibles 1. We will not pay for loss or damage in any one occurrence until the amount of loss or damage exceeds the Deductible shown in the Declarations. We will then pay the amount of loss or damage in excess of the Deductible up to the applicable Limit of Insurance of Section — Property. 2. Regardless of the amount of the Deductible, the most we will deduct from any loss or damage under all of the following Optional Coverages in any one occurrence is the Optional Coverage Deductible shown in the Declarations: a. Money and Securities; b. Employee Dishonesty; C. Outdoor Signs; and d. Forgery or Alteration. But this Optional Coverage Deductible will not increase the Deductible shown in the Declarations. This Deductible will be used to satisfy the requirements of the Deductible in the Declarations. 3. No deductible applies to the following Additional Coverages: a. Fire Department Service Charge; b. Business Income; c. Extra Expense; d. Civil Authority; and e. Fire Extinguisher Systems Recharge Expense. E. Property Loss Conditions 1. Abandonment a. Subject to Paragraph 5.1b., the Limit of There can be no abandonment of any property Insurance for Business Personal Property is to us. automatically increased by: 2. Appraisal (1) The Business Personal Property — If we and you disagree on the amount of loss, Seasonal Increase percentage shown in either may make written demand for an BP 00 03 01 10 © Insurance Services Office, Inc., 2009 Page 19 of 44 appraisal of the loss. In this event, each party within 60 days after our request. We will will select a competent and impartial appraiser. supply you with the necessary forms. The two appraisers will select an umpire. If (8) Cooperate with us in the investigation or they cannot agree, either may request that settlement of the claim. selection be made by a judge of a court having jurisdiction. The appraisers will state (9) Resume all or part of your "operations" separately the amount of loss. If they fail to as quickly as possible. agree, they will submit their differences to the b. We may examine any insured under oath, umpire. A decision agreed to by any two will while not in the presence of any other be binding. Each party will: insured and at such times as may be a. Pay its chosen appraiser; and reasonably required, about any matter relating to this insurance or the claim, b. Bear the other expenses of the appraisal including an insured's books and records. and umpire equally. In the event of an examination, an insured's If there is an appraisal, we will still retain our answers must be signed. right to deny the claim. 4. Legal Action Against Us 3. Duties In The Event Of Loss Or Damage No one may bring a legal action against us a. You must see that the following are done in under this insurance unless: the event of loss or damage to Covered a. There has been full compliance with all of Property: the terms of this insurance; and (1) Notify the police if a law may have been b. The action is brought within two years after broken. the date on which the direct physical loss or (2) Give us prompt notice of the loss or damage occurred. damage. Include a description of the 5. Loss Payment property involved. In the event of loss or damage covered by this (3) As soon as possible, give us a policy: description of how, when and where the loss or damage occurred. a. At our option, we will either: (4) Take all reasonable steps to protect the (1) Pay the value of lost or damaged Covered Property from further damage, property; and keep a record of your expenses (2) Pay the cost of repairing or replacing the necessary to protect the Covered lost or damaged property; Property, for consideration in the (3) Take all or any part of the property at an settlement of the claim. This will not agreed or appraised value; or increase the Limits of Insurance of Section I — Property. However, we will (4) Repair, rebuild or replace the property not pay for any subsequent loss or with other property of like kind and damage resulting from a cause of loss quality, subject to Paragraph d.(1)(e) that is not a Covered Cause of Loss. below. Also, if feasible, set the damaged b. We will give notice of our intentions within property aside and in the best possible 30 days after we receive the sworn proof of order for examination. loss. (5) At our request, give us complete c. We will not pay you more than your inventories of the damaged and financial interest in the Covered Property. undamaged property. Include quantities, costs, values and amount of d. Except as provided in Paragraphs (2) loss claimed. through (7) below, we will determine the value of Covered Property as follows: (6) As often as may be reasonably required, (1) At replacement cost without deduction permit us to inspect the property proving for depreciation, subject to the following: the loss or damage and examine your books and records. (a) If, at the time of loss, the Limit of Also permit us to take samples of Insurance on the lost or damaged property is 80% or more of the full damaged and undamaged property for replacement cost of the property inspection, testing and analysis, and immediately before the loss, we will permit us to make copies from your pay the cost to repair or replace, books and records. after application of the deductible (7) Send us a signed, sworn proof of loss and without deduction for containing the information we request to depreciation, but not more than the investigate the claim. You must do this Page 20 of 44 © Insurance Services Office, Inc., 2009 BP 00 03 01 10 least of the following amounts: as reasonably possible after the (i) The Limit of Insurance under loss or damage. Section I — Property that applies However, if the cost to repair or to the lost or damaged property; replace the damaged building (ii) The cost to replace, on the same property is $2,500 or less, we will premises, the lost or damaged settle the loss according to the property with other property: provisions of Paragraphs d.(1)(a) L comparable material and and d.(1)(b) above whether or not the actual repair or replacement is quality; and quality; complete. ii. Used for the same purpose; (e) The cost to repair, rebuild or replace or does not include the increased cost (iii) The amount that you actually attributable to enforcement of any spend that is necessary to repair ordinance or law regulating the or replace the lost or damaged construction, use or repair of any property. property. If a building is rebuilt at a new (2) If the Actual Cash Value — Buildings premises, the cost is limited to the option applies, as shown in the cost which would have been incurred Declarations, Paragraph (1) above does had the building been built at the not apply to Buildings. Instead, we will original premises. determine the value of Buildings at (b) If, at the time of loss, the Limit of actual cash value. Insurance applicable to the lost or (3) The following property at actual cash damaged property is less than 80% value: of the full replacement cost of the property immediately before the loss, (a) Used or secondhand merchandise we will pay the greater of the held in storage or for sale; following amounts, but not more than (b) Property of others. However, if an the Limit of Insurance that applies to item(s) of personal property of others the property: is subject to a written contract which (i) The actual cash value of the lost governs your liability for loss or damage to that item(s), then or damaged property; or valuation of that item(s) will be based (ii) A proportion of the cost to repair on the amount for which you are or replace the lost or damaged liable under such contract, but not to property, after application of the exceed the lesser of the replacement deductible and without deduction cost of the property or the applicable for depreciation. This proportion Limit of Insurance; will equal the ratio of the applicable Limit of Insurance to (c) Household contents, except personal 80% of the cost of repair or property in apartments or rooms furnished by you as landlord; replacement. (c) You may make a claim for loss or (d) Manuscripts; and damage covered by this insurance a Works of art, antiques or rare () q on an actual cash value basis articles, including etchings, pictures, instead of on a replacement cost statuary, marble, bronzes, porcelain basis. In the event you elect to have and bric-a-brac. loss or damage settled on an actual (4) Glass at the cost of replacement with cash value basis, you may still make safety glazing material if required by a claim on a replacement cost basis law. if you notify us of your intent to do so within 180 days after the loss or (5) Tenants' Improvements and damage. Betterments at: (d) We will not pay on a replacement (a) Replacement cost if you make repairs promptly. cost basis for any loss or damage: (i) Until the lost or damaged (b) A proportion of your original cost if property is actually repaired or p you do not make repairs promptly. We will determine the proportionate replaced; and value as follows: (ii) Unless the repairs or replacement are made as soon (i) Multiply the original cost by the BP 00 03 01 10 © Insurance Services Office, Inc., 2009 Page 21 of 44 number of days from the loss or lost or damaged property if other than you. damage to the expiration of the If we pay the owners, such payments will lease; and satisfy your claims against us for the (ii)Divide the amount determined in owners' property. We will not pay the owners more than their financial interest in (i) above by the number of days the Covered Property. from the installation of improvements to the expiration of f. We may elect to defend you against suits the lease. arising from claims of owners of property. If your lease contains a renewal We will do this at our expense. option, the expiration of the renewal g. We will pay for covered loss or damage option period will replace the within 30 days after we receive the sworn expiration of the lease in this proof of loss, provided you have complied procedure. with all of the terms of this policy; and (c) Nothing if others pay for repairs or (1) We have reached agreement with you replacement. on the amount of loss; or (6) Applicable only to the Optional (2) An appraisal award has been made. Coverages: h. A party wall is a wall that separates and is (a) "Money" at its face value; and common to adjoining buildings that are "Securities" Securities at their value at the close owned by different parties. In settling covered losses involving a party wall, we of business on the day the loss is will pay a proportion of the loss to the party discovered. wall based on your interest in the wall in (7) Applicable only to Accounts Receivable: proportion to the interest of the owner of the (a) If you cannot accurately establish the adjoining building. However, if you elect to amount of accounts receivable repair or replace your building and the outstanding as of the time of loss or owner of the adjoining building elects not to damage: repair or replace that building, we will pay (i) We will determine the total of the you the full value of the loss to the party wall, subject to all applicable policy average monthly amounts of accounts receivable for the 12 provisions including Limits of Insurance and n months immediately preceding all other provisions of this Loss Payment Condition. Our payment under the the month in which the loss provisions of this paragraph does not alter damage occurs; and any right of subrogation we may have (Ii) We will adjust that total for any against any entity, including the owner or normal fluctuations in the'amount insurer of the adjoining building, and does of accounts receivable for the not alter the terms of the Transfer Of Rights month in which the loss or Of Recovery Against Others To Us damage occurred or for any Condition in this policy. demonstrated variance from the 6. Recovered Property average for that month. (b) The following will be deducted from If either you or we recover any property after loss settlement, that party must give the other the total amount of accounts receivable, however that amount is prompt notice. At your option, you may retain established: the property. But then you must return to us the amount we paid to you for the property. We (i) The amount of the accounts for will pay recovery expenses and the expenses which there is no loss or damage; to repair the recovered property, subject to the (ii) The amount of the accounts that Limits of Insurance of Section I — Property. you are able to reestablish or 7. Resumption Of Operations collect; We will reduce the amount of your-.- our:(iii) (iii)An amount to allow for probable bad debts that you are normally a. Business Income loss, other than Extra unable to collect; and Expense, to the extent you can resume your "operations", in whole or in part, by (iv) All unearned interest and service using damaged or undamaged property charges. (including merchandise or stock) at the e. Our payment for loss of or damage to described premises or elsewhere. personal property of others will only be for b. Extra Expense loss to the extent you can the account of the owners of the property. return "operations" to normal and We may adjust losses with the owners of Page 22 of 44 © Insurance Services Office, Inc., 2009 BP 00 03 01 10 discontinue such Extra Expense. 8. 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 building is vacant when it does not contain 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 sublessee and used by the lessee or sub- lessee to conduct its customary operations; and/or (ii) Used by the building owner to conduct customary operations. (2) Buildings under construction or renovation are not considered vacant. b. Vacancy Provisions If the building 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, 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 (1)(a) through (1)(f) above, we will reduce the amount we would otherwise pay for the loss or damage by 15%. 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 policy, 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 policy 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 policy: (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 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 BP 00 03 01 10 © Insurance Services Office, Inc., 2009 Page 23 of 44 (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. G. Optional Coverages If shown as applicable in the Declarations, the following Optional Coverages also apply. These coverages are subject to the terms and conditions applicable to property coverage in this policy, except as provided below. 1. Outdoor Signs a. We will pay for direct physical loss of or damage to all outdoor signs at the described premises: (1) Owned'by you; or (2) Owned by others but in your care, custody or control. b. Paragraph A.3., Covered Causes Of Loss, and Paragraph B., Exclusions in Section I — Property, do not apply to this Optional Coverage, except for: (1) Paragraph B.1.c., Governmental Action; (2) Paragraph B.1.d., Nuclear Hazard; and (3) Paragraph B.1.f., War And Military Action. c. We will not pay for loss or damage caused by or resulting from: (1) Wear and tear; (2) Hidden or latent defect; (3) Rust; (4) Corrosion; or (5) Mechanical breakdown. d. The most we will pay for loss or damage in any one occurrence is the Limit of Insurance for Outdoor Signs shown in the Declarations. e. The provisions of this Optional Coverage supersede all other references to outdoor signs in this policy. 2. Money And Securities a. We will pay for loss of "money" and "securities" used in your business while at a bank or savings institution, within your living quarters or the living quarters of your partners or any employee having use and custody of the property, at the described premises, or in transit between any of these places, resulting directly from: (1) Theft, meaning any act of stealing; (2) Disappearance; or (3) Destruction. b. In addition to the Limitations and Exclusions applicable to .Section I — Property, we will not pay for loss: (1) Resulting from accounting or arithmetical errors or omissions; (2) Due to the giving or surrendering of property in any exchange or purchase; or (3) Of property contained in any "money" - operated device unless the amount of "money" deposited in it is recorded by a continuous recording instrument in the device. c. The most we will pay for loss in any one occurrence is: (1) The limit shown in the Declarations for Inside the Premises for "money" and "securities" while: (a) In or on the described premises; or (b) Within a bank or savings institution; and (2) The limit shown in the Declarations for Outside the Premises for "money" and "securities" while anywhere else. d. All loss: (1) Caused by one or more persons; or (2) Involving a single act or series of related acts; is considered one occurrence. e. You must keep records of all "money" and "securities" so we can verify the amount of any loss or damage. 3. Employee Dishonesty a. We will pay for direct loss of or damage to Business Personal Property and "money" Page 24 of 44 © Insurance Services Office, Inc., 2009 BP 00 03 01 10 and "securities" resulting from dishonest acts committed by any of your employees acting alone or in collusion with other persons (except you or your partner) with the manifest intent to: (1) Cause you to sustain loss or damage; and also (2) Obtain financial benefit (other than salaries, commissions, fees, bonuses, promotions, awards, profit sharing, pensions or other employee benefits earned in the normal course of employment) for: (a) Any employee; or (b) Any other person or organization. b. We will not pay for loss or damage: (1) Resulting from any dishonest or criminal act that you or any of your partners or "members" commit whether acting alone or in collusion with other persons. (2) Resulting from any dishonest act committed by any of your employees (except as provided in Paragraph a.), "managers" or directors: (a) Whether acting alone or in collusion with other persons; or (b) While performing services for you or otherwise. (3) The only proof of which as to its existence or amount is: (a) An inventory computation; or (b) A profit and loss computation. c. The most we will pay for loss or damage in any one occurrence is the Limit of Insurance for Employee Dishonesty shown in the Declarations. d. All loss or damage: (1) Caused by one or more persons; or (2) Involving a single act or series of acts; is considered one occurrence. e. If any loss is covered: (1) Partly by this insurance; and (2) Partly by any prior cancelled or terminated insurance that we or any affiliate had issued to you or any predecessor in interest; the most we will pay is the larger of the amount recoverable under this insurance or the prior insurance. We will pay only for loss or damage you sustain through acts committed or events occurring during the policy period. Regardless of the number of years this policy remains in force or the number of premiums paid, no Limit of Insurance cumulates from year to year or period to period. f. This Optional Coverage is cancelled as to any employee immediately upon discovery by: (1) You; or (2) Any of your partners, "members", "managers", officers or directors not in collusion with the employee; of any dishonest act committed by that employee before or after being hired by you. g. We will pay only for covered loss or damage sustained during the policy period and discovered no later than one year from the end of the policy period. h. If you (or any predecessor in interest) sustained loss or damage during the policy period of any prior insurance that you could have recovered under that insurance except that the time within which to discover loss or damage had expired, we will pay for it under this Optional Coverage, provided: (1) This Optional Coverage became effective at the time of cancellation or termination of the prior insurance; and (2) The loss or damage would have been covered by this Optional Coverage had it been in effect when the acts or events causing the loss or damage were committed or occurred. i'. The insurance under Paragraph h. above is part of, not in addition to, the Limit of Insurance applying to this Optional Coverage and is limited to the lesser of the amount recoverable under: (1) This Optional Coverage as of its effective date; or (2) The prior insurance had it remained in effect. j. With respect to the Employee Dishonesty Optional Coverage in Paragraph G.3., employee means: (1) Any natural person: (a) While in your service or for 30 days after termination of service; (b) Who you compensate directly by salary, wages or commissions; and (c) Who you have the right to direct and control while performing services for you; (2) Any natural person who is furnished temporarily to you: (a) To substitute for a permanent BP 00 03 01 10 © Insurance Services Office, Inc., 2009 Page 25 of 44 employee as defined in Paragraph (1) above, who is on leave; or (b) To meet seasonal or short-term workload conditions; (3) Any natural person who is leased to you under a written agreement between you and a labor leasing firm, to perform duties related to the conduct of your business, but does not mean a temporary employee as defined in Paragraph (2) above; (4) Any natural person who is a former employee, director, partner, member, manager, representative or trustee retained as a consultant while performing services for you; or (5) Any natural person who is a guest student or intern pursuing studies or duties, excluding, however, any such person while having care and custody of property outside any building you occupy in conducting your business. But employee does not mean: (1) Any agent, broker, factor, commission merchant, consignee, independent contractor or representative of the same general character; or (2) Any "manager", director or trustee except while performing acts coming within the usual duties of an employee. 4. Equipment Breakdown Protection Coverage a. We will pay for direct loss of or damage to Covered Property caused by or resulting from a mechanical breakdown or electrical failure to pressure, mechanical or electrical machinery and equipment. Mechanical breakdown or electrical failure to pressure, mechanical or electrical machinery and equipment does not mean any: (1) Malfunction including but not limited to adjustment, alignment, calibration, cleaning or modification; (2) Leakage at any valve, fitting, shaft seal, gland packing, joint or connection; (3) Damage to any vacuum tube, gas tube, or brush; or (1) Paragraph B.2.a. Electrical Apparatus; (2) Paragraph 13.2.d. Steam Apparatus; and (3) Paragraph B.2.1.(6) Mechanical Breakdown. d. With respect to the coverage provided by this Optional Coverage, Paragraph G.1.c.(5) of the Outdoor Sign Optional Coverage does not apply. e. If a dollar deductible is shown in the Declarations for this Optional Coverage, we will first subtract the applicable deductible amount from any loss we would otherwise pay. We will then pay the amount of loss in excess of the applicable deductible up to the applicable limit for this coverage. If no optional deductible is chosen for this Optional Coverage, the Property Deductible shown in the Declarations applies. f. With respect to Additional Coverages 51 Business Income and 5.g. Extra Expense, if the 72 -hour time period in the definition of "period of restoration" (hereinafter referred to as time deductible) is amended for this Optional Coverage as shown in the Declarations, we will not pay for any Business Income loss that occurs during the consecutive number of hours shown as the time deductible in the Declarations immediately following a mechanical breakdown or electrical failure. If a time deductible is shown in days, each day shall mean 24 consecutive hours. As respects the coverage provided by this Optional Coverage, any time deductible shown in the Declarations for Equipment Breakdown Protection Coverage supersedes any time deductible otherwise applicable to the Business Income coverage provided by this policy. g. With respect to the coverage provided by this Optional Coverage, Paragraph H. Property Definitions is amended as follows: 1. "Computer" means: a. Programmable electronic equipment that is used to store, retrieve and process data; and (4) The functioning of any safety or b. Associated peripheral equipment protective device. that provides communications b. Paragraphs A.4.a.(1) and A.4.a.(2), including input and output functions such as printing and auxiliary Limitations, do not apply to this Optional functions such as data transmission. Coverage. c. With respect to the coverage provided by "Computer" includes those used to operate production type machinery or equipment. this Optional Coverage, the following exclusions in Paragraph B. Exclusions do h. Whenever any covered pressure, not apply: mechanical or electrical machinery and equipment is found to be in, or exposed to, Page 26 of 44 © Insurance Services Office, Inc., 2009 BP 00 03 01 10 a dangerous condition, any of our representatives may suspend coverage provided by this Optional Coverage for loss from a mechanical breakdown or electrical failure to that pressure, mechanical or electrical machinery and equipment. However, coverage provided by this Optional Coverage may be reinstated for loss from a mechanical breakdown or electrical failure to that pressure, mechanical or electrical machinery and equipment if the reasons for the suspension are found by any of our representatives to no longer exist. We may suspend or reinstate this Optional coverage by mailing or delivering a written notification regarding the suspension or reinstatement to: (1) Your last known address; or (2) The address where the pressure, mechanical or electrical machinery and equipment is located. This notification will indicate the effective date of the suspension or reinstatement. If the coverage provided by this Optional Coverage is not reinstated, you will get a pro rata refund of premium. But the suspension will be effective even if we have not yet made or offered a refund. H. Property Definitions 1. "Computer" means: a. Programmable electronic equipment that is used to store, retrieve and process data; and b. Associated peripheral equipment that provides communication, including input and output functions such as printing and auxiliary functions such as data transmission. "Computer" does not include those used to operate production type machinery or equipment. 2. "Counterfeit money" means an imitation of "money" that is intended to deceive and to be taken as genuine. 3. "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. 4. "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. 5. "Manager" means a person serving in a directorial capacity for a limited liability company. 6. "Member" means an owner of a limited liability company represented by its membership interest, who also may serve as a "manager". 7. "Money" means: a. Currency, coins and bank notes in current use and having a face value; and b. Travelers checks, register checks and money orders held for sale to the public. 8. "Operations" means your business activities occurring at the described premises. 9. "Period of restoration": a. Means the period of time that: (1) Begins: (a) 72 hours after the time of direct physical loss or damage for Business Income Coverage; or (b) Immediately after the time of direct physical loss or damage for Extra Expense Coverage; caused by or resulting from any Covered Cause of Loss at the described premises; and (2) Ends on the earlier of: (a) The date when the property at the described premises should be repaired, rebuilt or replaced with reasonable speed and similar quality; or (b) The date when business is resumed at a new permanent location. b. Does not include any increased period required due to the enforcement of any ordinance or law that: (1) Regulates the construction, use or repair, or requires the tearing down of any property; or (2) Requires any insured or others to test for, monitor, clean up, remove, contain, treat, detoxify or neutralize, or in any way respond to or assess the effects of "pollutants". The expiration date of this policy will not cut short the "period of restoration". 10. "Pollutants" means any solid, liquid, gaseous or thermal irritant or contaminant, including BP 00 03 01 10 © Insurance Services Office, Inc., 2009 Page 27 of 44 smoke, vapor, soot, fumes, acids, alkalis, chemicals and waste. Waste includes materials to be recycled, reconditioned or reclaimed. 11.. "Securities" means negotiable and non- negotiable instruments or contracts representing either "money" or other property and includes: a. Tokens, tickets, revenue and other stamps (whether represented by actual stamps or unused value in a meter) in current use; and b. Evidences of debt issued in connection with credit or charge cards, which cards are not issued by you; but does not include "money". 12. "Specified causes of loss" means the following: Fire; lightning; explosion; windstorm or hail; smoke; aircraft or vehicles; riot or civil commotion; vandalism; leakage from fire extinguishing equipment; sinkhole collapse; volcanic action; failing objects; weight of snow, ice or sleet; water damage. a. Sinkhole collapse means the sudden sinking or collapse of land into underground empty spaces created by the action of water on limestone or dolomite. This cause of loss does not include: (1) The cost of filling sinkholes; or (2) Sinking or collapse of land into man- made underground cavities. b. Falling objects does not include loss of or damage to: (1) Personal property in the open; or (2) The interior of a building or structure, or property inside a building or structure, unless the roof or an outside wall of the building or structure is first damaged by a falling object. c. Water damage means accidental discharge or leakage of water or steam as the direct result of the breaking apart or cracking of any part of a system or appliance (other than a sump system including its related equipment and parts) containing water or steam. 13. "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. 14. "Valuable papers and records" means inscribed, printed or written: a. Documents; b. Manuscripts; and c. Records; including abstracts, books, deeds, drawings, films, maps or mortgages. 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 that 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 Paragraph D. — Liability And Medical Expenses Limits Of Insurance in Section II — Liability; and (2) Our right and duty to defend end when we have used up the applicable Limit of Insurance in the payment of judgments or settlements or medical expenses. No other obligation or liability to pay sums or perform acts or services is covered unless explicitly provided for under Paragraph 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 Paragraph C.I. Who Is An Insured 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 Page 28 of 44 © Insurance Services Office, Inc., 2009 BP 00 03 01 10 continuation, change or resumption of such "bodily injury' or "property damage" during or after the policy period will be deemed to have been known before 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 Paragraph C.I. Who Is An Insured 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 Paragraph C.I. Who Is An Insured 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 $250 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 $250 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 prejudgment interest based on that period of time after the offer. (g) All interest on the full amount of any judgment that accrues after entry of the judgment and before we have paid, offered to pay, or deposited in court the part of the judgment that is within our Limit of Insurance. These payments will not reduce the limit of liability. (2) If we defend an insured against a "suit" and an indemnitee of the insured is also named as a party to the "suit", we will defend that indemnitee if all of the following conditions are met: (a) The "suit" against the indemnitee seeks damages for which the insured has assumed the liability of the indemnitee in a contract or agreement that is an "insured contract'; (b) This insurance applies to such liability assumed by the insured; (c) The obligation to defend, or the cost of the defense of, that indemnitee, has also been assumed by the insured in the same "insured contract"; (d) The allegations in the "suit" and the information we know about the "occurrence" are such that no conflict appears to exist between the interests of the insured and the interests of the indemnitee; (e) The indemnitee and the insured ask us to conduct and control the defense of that indemnitee against such "suit" and agree that we can assign the same counsel to defend the insured and the indemnitee; and (f) The indemnitee: BP 00 03 01 10 © Insurance Services Office, Inc., 2009 Page 29 of 44 (i) Agrees in writing to: i. Cooperate with us in the investigation, settlement or defense of the "suit'; ii. Immediately send us copies of any demands, notices, summonses or legal papers received in connection with the "suit'; iii. Notify any other insurer whose coverage is available to the indemnitee; and iv. Cooperate with us with respect to coordinating other applicable insurance available to the indemnitee; and (ii) Provides us with written authorization to: L Obtain records and other information related to the "suit'; and ii. Conduct and control the defense of the indemnitee in such "suit". (3) So long as the conditions in Paragraph (2) are met, attorneys' fees incurred by us in the defense of that indemnitee, necessary litigation expenses incurred by us and necessary litigation expenses incurred by the indemnitee at our request will be paid as Supplementary Payments. Notwithstanding the provisions of Paragraph B.1.b.(2) Exclusions in Section II — Liability, such payments will not be deemed to be damages for "bodily injury" and "property damage" and will not reduce the Limits of Insurance. Our obligation to defend an insured's indemnitee and to pay for attorneys' fees and necessary litigation expenses as Supplementary Payments ends when: (a) We have used up the applicable Limit of Insurance in the payment of judgments or settlements; or (b) The conditions set forth above, or the terms of the agreement described in Paragraph (2)(f) above are no longer met. 2. Medical Expenses a. We will pay medical expenses as described below for "bodily injury" caused by an accident: (1) On premises you own or rent; (2) On ways next to premises you own or rent; or (3) Because of your operations; provided that: (a) The accident takes place in the "coverage territory" and during the policy period; (b) The expenses are incurred and reported to us within one year of the date of the accident; and (c) The injured person submits to examination, at our expense, by physicians of our choice as often as we reasonably require. b. We will make these payments regardless of fault. These payments will not exceed the Limits of Insurance of Section II — Liability. We will pay reasonable expenses for: (1) First aid administered at the time of an accident; (2) Necessary medical, surgical, x-ray and dental services, including prosthetic devices; and (3) Necessary ambulance, hospital, professional nursing and funeral services. B. Exclusions 1. Applicable To Business Liability Coverage This insurance does not apply to: a. Expected Or Intended Injury "Bodily injury" or "property damage" expected or intended from the standpoint of the insured. This exclusion does not apply to "bodily injury" resulting from the use of reasonable force to protect persons or property. b. Contractual Liability "Bodily injury" or "property damage" for which the insured is obligated to pay damages by reason of the assumption of liability in a contract or agreement. This exclusion does not apply to liability for damages: (1) That the insured would have in the absence of the contract or agreement; or (2) Assumed in a contract or agreement that is an "insured contract", provided the "bodily injury" or "property damage" occurs subsequent to the execution of the contract or agreement. Solely for the purposes of liability assumed in an "insured contract", reasonable attorney fees and necessary litigation expenses incurred by or for a party other than an insured are deemed to be damages because of "bodily injury" or "property damage", provided: Page 30 of 44 © Insurance Services Office, Inc., 2009 BP 00 03 01 10 (a) Liability to such party for, or for the seepage, migration, release or escape cost of, that party's defense has also of "pollutants": been assumed in the same "insured contract"; and (a) At or from any premises, site or location which is or was at any time (b) Such attorney fees and litigation owned or occupied by, or rented or expenses are for defense of that loaned to, any insured. However, party against a civil or alternative this subparagraph does not apply to: dispute resolution proceeding in which damages to which this (1) "Bodily injury" if sustained within insurance applies are alleged. a building and caused by smoke, fumes, vapor or soot produced by c. Liquor Liability or originating from equipment that "Bodily injury" or "property damage" for is used to heat, cool or which any insured may be held liable by dehumidify the building, or reason of: equipment that is used to heat (1) Causing or contributing to the water for personal use, by the building's occupants or their intoxication of any person; guests; (2) The furnishing of alcoholic beverages to (Ii) "Bodily injury" or "property a person under the legal drinking age or under the influence of alcohol; or damage" for which you may be held liable, if you are a contractor (3) Any statute, ordinance or regulation and the owner or lessee of such relating to the sale, gift, distribution or premises, site or location has use of alcoholic beverages. been added to your policy as an This exclusion applies only if you are'in the additional insured with respect to business of manufacturing, distributing, your ongoing operations selling, serving or furnishing alcoholic performed for that additional beverages. insured at that premises, site or d. Workers' Compensation And Similar location and such premises, site or location is not and never was Laws owned or occupied by, or rented Any obligation of the insured under a or loaned to, any insured, other workers' compensation, disability benefits than that additional insured; or or unemployment compensation law or any (iii) "Bodily injury" or "property similar law. damage" arising out of heat, e. Employer's Liability smoke or fumes from a "hostile "Bodily injury" to: fire"; (1) An "employee" of the insured arising out (b) At or from any premises, site or of and in the course of: location which is or was at any time used by or for any insured or others (a) Employment by the insured; or for the handling, storage, disposal, (b) Performing duties related to the processing or treatment of waste; conduct of the insured's business; or (c) Which are or were at any time (2) The spouse, child, parent, brother or transported, handled, stored, treated, sister of that "employee" as a disposed of, or processed as waste consequence of Paragraph (1) above. by or for: This exclusion applies: (i) Any insured; or (1) Whether the insured may be liable as an (ii) Any person or organization for employer or in any other capacity; and whom you may be legally (2) To any obligation to share damages with responsible; or or repay someone else who must pay (d) At or from any premises, site or damages because of the injury. location on which any insured or any This exclusion does not apply to liability "insured contractors or subcontractorsworking directly or indirectly on any assumed by the insured under an insured's behalf are performing contract". operations if the "pollutants" are f. Pollution brought on or to the premises, site or (1) "Bodily injury" or "property damage" location in connection with such arising out of the actual, alleged or operations by such insured, threatened discharge, dispersal, contractor or subcontractor. BP 00 03 01 10 © Insurance Services Office, Inc., 2009 Page 31 of 44 However, this subparagraph does "pollutants"; or not apply to: (b) Claim or "suit" by or on behalf of a (i). "Bodily injury" or "property governmental authority for damages damage" arising out of the because of testing for, monitoring, escape of fuels, lubricants or cleaning up, removing, containing, other operating fluids which are treating, detoxifying or neutralizing, needed to perform the normal or in any way responding to, or electrical, hydraulic or assessing the effects of, "pollutants". mechanical functions necessary However, this paragraph does not apply for the operation of mobile to liability for damages because of equipment or its parts, if such "property damage" that the insured fuels, lubricants or other would have in the absence of such operating fluids escape from a request, demand, order or statutory or vehicle part designed to hold, regulatory requirement or such claim or store or receive them. This "suit" by or on behalf of a governmental exception does not apply if the authority. "bodily injury" or "property damage" arises out of the g. Aircraft, Auto Or Watercraft intentional discharge, dispersal or "Bodily injury" or "property damage" arising release of the fuels, lubricants or out of the ownership, maintenance, use or other operating fluids, or if such entrustment to others of any aircraft, "auto" fuels, lubricants or other or watercraft owned or operated by or operating fluids are brought on or rented or loaned to any insured. Use to the premises, site or location includes operation and "loading or with the intent that they be unloading". discharged, dispersed or This exclusion applies even if the claims released as part of the operations allege negligence or other wrongdoing in being performed by such insured, the supervision, hiring, employment, contractor or subcontractor; training or monitoring of others by an (ii) "Bodily injury" or "property insured, if the "occurrence" which caused damage" sustained within a the "bodily injury" or "property damage" building and caused by the involved the ownership, maintenance, use release of gases, fumes or or entrustment to others of any aircraft, vapors from materials brought "auto" or watercraft that is owned or into that building in connection operated by or rented or loaned to any with operations being performed insured. by you or on your behalf by a This exclusion does not apply to: contractor or subcontractor; or (iii) "Bodily injury" or "property (1) A watercraft while ashore on premises you own or rent; damage" arising out of heat, smoke or fumes from a "hostile (2) A watercraft you do not own that is: fire". (a) Less than 51 feet long; and (e) At or from any premises, site or (b) Not being used to carry persons or location on which any insured or any property for a charge; contractors or subcontractors working directly or indirectly on any (3) Parking an "auto" on, or on the ways insured's behalf are performing next to, premises you own or rent, provided the "auto" is not owned by or operations if the operations are to rented or loaned to you or the insured; test for, monitor, clean up, remove, contain, treat, detoxify or neutralize, (4) Liability assumed under any "insured or in any way respond to, or assess contract for the ownership, the effects of, "pollutants". maintenance or use of aircraft or (2) Any loss, cost or expense arising out of watercraft; or any: (5) "Bodily injury" or "property damage" (a) Request, demand, order or statutory arising out of: or regulatory requirement that any (a) The operation of machinery or insured or others test for, monitor, equipment that is attached to, or part clean up, remove, contain, treat, of, a land vehicle that would qualify detoxify or neutralize, or in any way under the definition of "mobile respond to, or assess the effects of, equipment" if it were not subject to a Page 32 of 44 © Insurance Services Office, Inc., 2009 BP 00 03 01 10 compulsory or financial responsibility law or other motor vehicle insurance or motor vehicle registration law where it is licensed or principally garaged; or (b) The operation of any of the following machinery or equipment: (i) Cherry pickers and similar devices mounted on automobile or truck chassis and used to raise or lower workers; and (ii') Air compressors, pumps and generators, including spraying, welding, building cleaning, geophysical exploration, lighting and well servicing equipment. h. Mobile Equipment "Bodily injury" or "property damage" arising out of: (1) The transportation of "mobile equipment" by an "auto" owned or operated by or rented or loaned to any insured; or (2) The use of "mobile equipment" in, or while in practice for, or while being prepared for, any prearranged racing, speed, demolition or stunting activity. L War "Bodily injury", "property damage" or "personal and advertising injury", however caused, arising, directly or indirectly, out of: (1) War, including undeclared 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 government authority in hindering or defending against any of these. j. Professional Services "Bodily injury", "property damage" or "personal and advertising injury" caused by the rendering or failure to render any professional service. This includes but is not limited to: (1) Legal, accounting or advertising services; (2) Preparing, approving, or failing to prepare or approve maps, drawings, opinions, reports, surveys, change orders, designs or specifications; (3) Supervisory, inspection or engineering services; (4) Medical, surgical, dental, x-ray or nursing services treatment, advice or instruction; (5) Any health or therapeutic service treatment, advice or instruction; (6) Any service, treatment, advice or instruction for the purpose of appearance or skin enhancement, hair removal or replacement or personal grooming; (7) 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; (8) Body piercing services; and (9) Services in the practice of pharmacy. This exclusion applies even if the claims allege 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 or failure to render of 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 BP 00 03 01 10 © Insurance Services Office, Inc., 2009 Page 33 of 44 you for a period of seven or fewer consecutive days. A separate Limit of Insurance applies to Damage To Premises Rented To You as described in Paragraph D. Liability And Medical Expenses Limit Of Insurance in Section II — Liability. 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". I. 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 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. Personal And Advertising Injury "Personal and advertising injury": (1) 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'; (2) Arising out of oral or written publication of material, if done by or at the direction of the insured with knowledge of its falsity; (3) Arising out of oral or written publication of material whose first publication took place before the beginning of the policy period; (4) 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; (5) Arising out of a breach of contract, except an implied contract to use another's advertising idea in your "advertisement"; (6) Arising out of the failure of goods, products or services to conform with any statement of quality or performance made in your "advertisement'; (7) Arising out of the wrong description of the price of goods, products or services stated in your "advertisement'; (8) Committed by an insured whose business is: (a) Advertising, broadcasting, publishing or telecasting; (b) Designing or determining content of websites for others; or (c) An Internet search, access, content or service provider. However, this exclusion does not apply to Paragraphs 14.a., b. and c. of "personal and advertising injury" under Paragraph F. Liability And Medical Expenses Definitions. For the purposes of this exclusion, the placing of frames, borders or links, or advertising, for you or others anywhere on the Internet, by itself, is not considered the business of advertising, broadcasting, publishing or telecasting. (9) Arising out of the actual, alleged or Page 34 of 44 © Insurance Services Office, Inc., 2009 BP 00 03 01 10 threatened discharge, dispersal, store, retrieve or send data. seepage, migration, release or escape r. Criminal Acts of pollutants at any time; (10) With respect to any loss, cost or Personal and advertising injuryarising out expense arising out of any: of a criminal act committed by or at the direction of the insured. (a) Request, demand or order that any insured r others test for, monitor, s. Recording And Distribution Of Material clean-up,,remove, contain, treat, Or Information In Violation Of Law detoxify or neutralize or in any way "Bodily injury", "property damage", or respond to, or assess the effects of, "personal and advertising injury" arising "pollutants'; or directly or indirectly out of any action or (b) Claim or "suit" by or on behalf of a violate: omission that violates or is alleged to governmental authority for damages because of testing for, monitoring, (1) The Telephone Consumer Protection cleaning up, removing, containing, Act (TCPA), including any amendment treating, detoxifying or neutralizing or of or addition to such law; in any way responding to, or (2) The CAN -SPAM Act of 2003, including assessing the effects of, "pollutants". any amendment of or addition to such (11) Arising out of an electronic chatroom or law; bulletin board the insured hosts, owns or (3) The Fair Credit Reporting Act (FCRA), over which the insured exercises and any amendment of or addition to control; such law, including the Fair and (12) Arising out of the infringement of Accurate Credit Transaction Act copyright, patent, trademark, trade (FACTA); or secret or other intellectual property (4) Any federal, state or local statute, rights. Under this exclusion, such other ordinance or regulation, other than the intellectual property rights do not include TCPA, CAN -SPAM Act of 2003 or the use of another's advertising idea in FCRA and their amendments and your "advertisement". additions, that addresses, prohibits, or However, this exclusion does not apply limits the printing, dissemination, to infringement, in your "advertisement", disposal, collecting, recording, sending, of copyright, trade dress or slogan. transmitting, communicating or (13) Arising out of the unauthorized use of distribution of material or information. another's name or product in your e-mail Exclusions c., d., e., f., g., h., i., k., I., m., n. address, domain name or metatags, or and o. in Section II — Liability do not apply to any other similar tactics to mislead damage by fire to premises while rented to another's potential customers. you, or temporarily occupied by you with q. Electronic Data permission of the owner. A separate Damage To Premises Rented To You Limit of Insurance Damages arising out of the loss of, loss of applies to this coverage as described in use of, damage to, corruption of, inability to Paragraph D. Liability And Medical Expenses access, or inability to manipulate electronic Limits of Insurance in Section II — Liability. data. 2. Applicable To Medical Expenses Coverage As used in this exclusion, electronic data means information, facts or computer We will not pay expenses for "bodily injury": programs stored as or on, created or used a. To any insured, except "volunteer workers". on, or transmitted to or from computer b. To a person hired to do work for or on software (including systems and behalf of any insured or a tenant of any applications software), on hard or floppy insured. disks, CD-ROMs, tapes, drives, cells, data processing devices or any other c. To a person injured on that part of premises repositories of computer software which are you own or rent that the person normally used with electronically controlled occupies. equipment. The term computer programs, d. To a person, whether or not an "employee" referred to in the foregoing description of of any insured, if benefits for the "bodily electronic data, means a set of related injury" are payable or must be provided electronic instructions which direct the under a workers' compensation or disability operations and functions of a computer or benefits law or a similar law. device connected to it, which enable the e. To a person injured while practicing, computer or device to receive, process, instructing or participating in any physical SP 00 03 01 10 © Insurance Services Office, Inc., 2009 Page 35 of 44 exercises or games, sports or athletic stored, transported or disposed of by or contests. on behalf of an insured; or f. Included within the "products -completed (3) The "bodily injury" or "property damage" operations hazard". arises out of the furnishing by an g. Excluded under Business Liability insured of services, materials, parts or equipment in connection with the Coverage. planning, construction, maintenance, 3. Applicable To Both Business Liability operation or use of any "nuclear facility'; Coverage And Medical Expenses Coverage but. if such facility is located within the — Nuclear Energy Liability Exclusion United States of America, its territories This insurance does not apply: or possessions or Canada, this a. Under Business Liability Coverage, to Exclusion (3) applies only to "property damage to such nuclear facility and "bodily injury" or "property damage": any property thereat. (1) With respect to which an insured under d. As used in this exclusion: the policy is also an insured under a nuclear energy liability policy issued by (1) "By-product material" has the meaning the Nuclear Energy Liability Insurance given it in the Atomic Energy Act of Association, Mutual Atomic Energy 1954 or in any law amendatory thereof; Liability Underwriters or Nuclear (2) "Hazardous properties" include Insurance Association of Canada, or radioactive, toxic or explosive would be an insured under any such properties; policy but for its termination upon exhaustion of its limit of liability; or (3) "Nuclear facility" means: (2) Resulting from the "hazardous (a) Any "nuclear reactor'; properties" of "nuclear material" and (b) Any equipment or device designed with respect to which: or used for: (a) Any person or organization is (i) Separating the isotopes of required to maintain financial uranium or plutonium; protection pursuant to the Atomic (ii) Processing or utilizing "spent Energy Act of 1954, or any law fuel'; or amendatory thereof; or (iii) Handling, processing or b The insured is, or had this policy not () p y packaging "waste"; been issued would be, entitled to indemnity from the United States of (c) Any equipment or device used for America, or any agency thereof, the processing, fabricating or under any agreement entered into by alloying of "special nuclear material" the United States of America, or any if at any time the total amount of agency thereof, with any person or such material in the custody of the organization. insured at the premises where such equipment or device is located b. Under Medical Expenses Coverage, to consists of or contains more than 25 expenses incurred with respect to "bodily grams of plutonium or uranium 233 injury" resulting from the "hazardous or any combination thereof, or more properties" of "nuclear material" and arising than 250 grams of uranium 235; out of the operation of a "nuclear facility" by any person or organization. (d) Any structure, basin, excavation, premises or place prepared or used c. Under Business Liability Coverage, to for the or storage disposal of g p "bodily injury" or "property damage" "waste"; resulting from the "hazardous properties" of the nuclear material; if: and includes the site on which any of the foregoing is located, all operations 1 The "nuclear material": () conducted on such site and all premises (a) Is at any "nuclear facility" owned by, used for such operations; or operated by or on behalf of, an (4) "Nuclear material" means "source insured; or material", "special nuclear material" or (b) Has been discharged or dispersed "by-product material'; therefrom; (5) "Nuclear reactor" means any apparatus (2) The "nuclear material" is contained in designed or used to sustain nuclear "spent fuel" or "waste" at any time fission in a self-supporting chain possessed, handled, used, processed, reaction or to contain a critical mass of Page 36 of 44 © Insurance Services Office, Inc., 2009 BP 00 03 01 10 fissionable material; (6) "Property damage" includes all forms of radioactive contamination of property; (7) "Source material' has the meaning given it in the Atomic Energy Act of 1954 or in any law amendatory thereof; (8) "Special nuclear material' has the meaning given it in the Atomic Energy Act of 1954 or in any law amendatory thereof; (9) "Spent fuel" means any fuel element or fuel component, solid or liquid, which has been used or exposed to radiation in a "nuclear reactor';, (10) "Waste" means any waste material: (a) 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 (b) Resulting from the operation by any person or organization of any "nuclear facility" included under Paragraphs (a) and (b) of the definition of "nuclear facility". C. Who Is An Insured 1. If you are designated in the Declarations as: a. An individual, you and your spouse are insureds, but only with respect to the conduct of a business of which you are the sole owner. b. A partnership or joint venture, you are an insured. Your members, your partners and their spouses are also insureds, but only with respect to the conduct of your business. c. A limited liability company, you are an insured. Your members are also insureds, but only with respect to the conduct of your business. Your managers are insureds, but only with respect to their duties as your managers. d. An organization other than a partnership, joint venture or limited liability company, you are an insured. Your "executive officers" and directors are insureds, but only with respect to their duties as your officers or directors. Your stockholders are also insureds, but only with respect to their liability as stockholders. e. A trust, you are an insured. Your trustees are also insureds, but only with respect to their duties as trustees. 2. Each of the following is also an insured: your business, or your "employees", other than either your "executive officers" (if you are an organization other than a partnership, joint venture or limited liability company) or your managers (if you are a limited liability company), but only for acts within the scope of their employment by you or while performing duties related to the conduct of your business. However, none of these "employees" or "volunteer workers" are insureds for: (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 -"employee" as a consequence of Paragraph (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 Paragraph (a) or (b); or (d) Arising out of his or her providing or failing to provide professional health care services. (2) "Property damage" to property: (a) Owned, occupied or used by, (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 a. Your "volunteer workers" only while (2) Until your legal representative has been performing duties related to the conduct of appointed. BP 00 03 01 10 © Insurance Services Office, Inc., 2009 Page 37 of 44 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. 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 of 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. 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. But 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. 3. The most we will pay under Business Liability Coverage for damages because of "property damage" to a premises while rented to you or in the case of fire while rented to you or temporarily occupied by you with permission of the owner is the applicable Damage To Premises Rented To You limit shown for that premises in the Declarations. For a premises temporarily occupied by you, the applicable limit will be the highest Damage To Premises Rented To You limit shown in the Declarations. 4. Aggregate Limits The most we will pay for: a. All "bodily injury" and "property damage" that is included in the "products -completed operations hazard" is twice the Liability and Medical Expenses limit. b. All: (3) Plus all "personal and advertising injury" caused by offenses committed; is twice the Liability and Medical Expenses limit. Subject to Paragraph a. or b. above, whichever applies, the Damage To Premises Rented To You Limit is the most we will pay for damages because of "property damage" to any one premises, while rented to you, or in the case of fire, while rented to you or temporarily occupied by you with permission of the owner. The Limits of Insurance of Section 11— 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 policy. 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. 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) "Bodily injury" and "property damage" (1) Immediately send us copies of any except damages because of "bodily demands, notices, summonses or legal injury" or "property damage" included in papers received in connection with the the "products -completed operations claim or "suit"; hazard"; (2) Plus medical expenses; (2) Authorize us to obtain records and other information; Page 38 of 44 © Insurance Services Office, Inc., 2009 BP 00 03 01 10 (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 policy: 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 of Section II — Liability, and any rights or duties specifically assigned in this policy 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. F. Liability And Medical Expenses Definitions 1. "Advertisement" means a notice that is broadcast or published to the general public or specific market segments about your goods, products or services for the purpose of attracting customers or supporters. For the purposes of this definition: a. Notices that are published include material placed on the Internet or on similar electronic means of communication; and b. Regarding websites, only that part of a website that is about your goods, products or services for the purposes of attracting customers or supporters is considered an advertisement. designed for travel on public roads, including any attached machinery or equipment; or b. Any other land vehicle that is subject to a compulsory or financial responsibility law or other motor vehicle insurance or motor vehicle registration law where it is licensed or principally garaged. However, "auto" does not include "mobile equipment". 3. "Bodily injury" means bodily injury, sickness or disease sustained by a person, including death resulting from any of these at any time. 4. "Coverage territory" means: a. The United States of America (including its territories and possessions), Puerto Rico and Canada; b. International waters or airspace, but only if the injury or damage occurs in the course of travel or transportation between any places included in Paragraph a. above; or c. All other parts of the world if the injury or damage arises out of: (1) Goods or products made or sold by you in the territory described in Paragraph a. above; (2) The activities of a person whose home is in the territory described in Paragraph a. above, but is away for a short time on your business; or (3) "Personal and advertising injury" offenses that take place through the Internet or similar electronic means of communication; provided the insured's responsibility to pay damages is determined in a "suit" on the merits in the territory described in Paragraph a. above or in a settlement we agree to. 5. "Employee" includes a "leased worker". "Employee" does not include a "temporary worker". 6. "Executive officer" means a person holding any of the officer positions created by your charter, constitution, bylaws or any other similar governing document. 7. "Hostile fire" means one which becomes uncontrollable or breaks out from where it was intended to be. 8. "Impaired property" means tangible property, other than "your product" or "your work", that cannot be used or is less useful because: a. It incorporates "your product" or "your work" that is known or thought to be defective, deficient, inadequate or dangerous; or 2. "Auto" means: b. You have failed to fulfill the terms of a a. A land motor vehicle, trailer or semi -trailer contract or agreement; BP 00 03 01 10 © Insurance Services Office, Inc., 2009 Page 39 of 44 if such property can be restored to use by: (1) The repair, replacement, adjustment or removal of "your product" or "your work"; or (2) Your fulfilling the terms of the contract or agreement. 9. "Insured contract" means: a. A contract for a lease of premises. However, that portion of the contract for a lease of premises that indemnifies any person or organization for damage by fire to premises while rented to you or temporarily occupied by you with permission of the owner is not an "insured contract'; b. A sidetrack agreement; c. Any easement or license agreement, except in connection with construction or demolition operations on or within 50 feet of a railroad; d. An obligation, as required by ordinance, to indemnify a municipality, except in connection with work for a municipality; e. An elevator maintenance agreement; f. That part of any other contract or agreement pertaining to your business (including an indemnification of a municipality in connection with work performed for a municipality) under which you assume the tort liability of another party to pay for "bodily injury" or "property damage" to a third person or organization. Tort liability means a liability that would be imposed by law in the absence of any contract or agreement. Paragraph f. does not include that part of any contract or agreement: (1) That indemnifies a railroad for "bodily injury' or "property damage" arising out of construction or demolition operations, within 50 feet of any railroad property and affecting any railroad bridge or trestle, tracks, roadbeds, tunnel, underpass or crossing; (2) That indemnifies an architect, engineer or surveyor for injury or damage arising out of: (a) Preparing, approving or failing to prepare or approve maps, drawings, opinions, reports, surveys, change orders, designs or specifications; or (b) Giving directions or instructions, or failing to give them, if that is the primary cause of the injury or damage; or (3) Under which the insured, if an architect, engineer or surveyor, assumes liability for an injury or damage arising out of the insured's rendering or failure to render professional services, including those listed in Paragraph (2) above and supervisory, inspection or engineering services. 10. "Leased worker" means a person leased to you by a labor leasing firm under an agreement between you and the labor leasing firm, to perform duties related to the conduct of your business. "Leased worker" does not include a "temporary worker". 11. "Loading or unloading" means the handling of property: a. After it is moved from the place where it is accepted for movement into or onto an aircraft, watercraft or "auto'; b. While it is in or on an aircraft, watercraft or "auto"; or c. While it is being moved from an aircraft, watercraft or "auto" to the place where it is finally delivered; but "loading or unloading" does not include the movement of property by means of a mechanical device, other than a hand truck, that is not attached to the aircraft, watercraft or "auto". 12. "Mobile equipment" means any of the following types of land vehicles, including any attached machinery or equipment: a. Bulldozers, farm machinery, forklifts and other vehicles designed for use principally off public roads; b. Vehicles maintained for use solely on or next to premises you own or rent; c. Vehicles that travel on crawler treads; d. Vehicles, whether self-propelled or not, on which are permanently mounted: (1) Power cranes, shovels, loaders, diggers or drills; or (2) Road construction or resurfacing equipment such as graders, scrapers or rollers; e. Vehicles not described in Paragraph a., b., c. or d. above that are not self-propelled and are maintained primarily to provide mobility to permanently attached equipment of the following types: (1) Air compressors, pumps and generators, including spraying, welding, building cleaning, geophysical exploration, lighting and well servicing equipment; or (2) Cherry pickers and similar devices used to raise or lower workers; f. Vehicles not described in Paragraph a., b., c. or d. above maintained primarily for Page 40 of 44 © Insurance Services Office, Inc., 2009 BP 00 03 01 10 purposes other than the transportation of persons or cargo. However, self-propelled vehicles with the following types of permanently attached equipment are not "mobile equipment" but will be considered "autos": (1) Equipment designed primarily for: (a) Snow removal; (b) Road maintenance, but not construction or resurfacing; or (c) Street cleaning; (2) Cherry pickers and similar devices mounted on automobile or truck chassis and used to raise or lower workers; and (3) Air compressors, pumps and generators, including spraying, welding, building cleaning, geophysical exploration, lighting and well servicing equipment. However, "mobile equipment" does not include land vehicles that are subject to a compulsory or financial responsibility law or other motor vehicle insurance or motor vehicle registration law where they are licensed or principally garaged. Land vehicles subject to a compulsory or financial responsibility law or other motor vehicle insurance law or motor vehicle registration 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; 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. e. Oral or written publication, in any manner, 17. "Property damage" means: of material that violates a person's right of a. Physical injury to tangible property, privacy; including all resulting loss of use of that f. The use of another's advertising idea in rope All such loss of use shall be "advertisement"; advertisement; or deemed to occur at the time of the physical g. Infringing upon another's copyright, trade injury that caused it; or dress or slogan in your "advertisement". b. Loss of use of tangible property that is not 15. "Pollutants" mean any solid, liquid, gaseous or physically injured. All such loss of use shall thermal irritant or contaminant, including be deemed to occur at the time of the smoke, vapor, soot, fumes, acids, alkalis, "occurrence" that caused it. BP 00 03 01 10 © Insurance Services Office, Inc., 2009 Page 41 of 44 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. 18. "Suit" means a civil proceeding in which damages because of "bodily injury", "property damage", or "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. "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. 21. "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 (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. 22. "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 111— 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. Five 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. (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 Page 42 of 44 © Insurance Services Office, Inc., 2009 BP 00 03 01 10 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 owing 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 conceal or misrepresent 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. E. Inspections And Surveys 1. We have the right 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. And 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, we will not pay more than the actual amount of the loss or damage. G. Liberalization If we adopt any revision that would broaden the coverage under this policy without additional premium within 45 days prior to or during the policy period, the broadened coverage will immediately apply to this policy. H. Other Insurance 1. If there is other insurance covering the same loss or damage, we will pay only for the amount of covered loss or damage in excess of the amount due from that other insurance, whether you can collect on it or not. But we will.not pay more than the applicable Limit of Insurance of Section 1— Property. 2. Business Liability Coverage is excess over: a. Any other insurance that insures for direct physical loss or damage; or BP 00 03 01 10 © Insurance Services Office, Inc., 2009 Page 43 of 44 b. Any other primary insurance available to you covering liability for damages arising out of the premises or operations for which you have been added as an additional insured by attachment of an endorsement. 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. 1. 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 are 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 Businessowners 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: 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. 2. Applicable to Businessowners Liability Coverage: If the insured has rights to recover all or part of any payment we have made under this policy, those rights are transferred to us. The insured must do nothing after loss to impair them. At our request, the insured will bring "suit" or transfer those rights to us and help us enforce them. 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 acting within the scope of duties as your legal representative. Until your legal representative is appointed, anyone having proper temporary custody of your property will have your rights and duties but only with respect to that property. Page 44 of 44 © Insurance Services Office, Inc., 2009 BP 00 03 01 10 BUSINESSOWNERS BP 01 55 07 20 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. CALIFORNIA CHANGES This endorsement modifies insurance provided under the following: BUSINESSOWNERS COVERAGE FORM INFORMATION SECURITY PROTECTION ENDORSEMENT A. Section 1— Property is amended as follows: 1. With respect to an 'open policy", the following is added to any provision which uses the term actual cash value: a. In the event of a partial or total loss to a building or structure, actual cash value is calculated as a.(1) or a.(2), whichever is less: (1) The amount it would cost to repair, rebuild or replace the property less a fair and reasonable deduction for physical depreciation of the components of the building or structure that are normally subject to repair or replacement during its useful life. Physical depreciation is based upon the condition of the property at the time of loss; or (2) The Limit of Insurance applicable to the property. b. In the event of a partial or total loss to Covered Property other than a building or structure, actual cash value is calculated as b.(1) or b.(2), whichever is less: (1) The amount it would cost to repair or replace the property less a fair and reasonable deduction for physical depreciation, based on the condition of the property at the time of loss; or (2) The Limit of Insurance applicable to the property. c. An 'open policy" is a policy under which the value of Covered Property is not fixed at policy inception, but is determined at the time of loss in accordance with policy provisions on valuation. 2. Paragraph E.2. Appraisal Property Loss Conditions is replaced by the following: 2. Appraisal If we and you disagree on the value of the property or the actual cash value or the amount of loss, either may make written request for an appraisal of the loss. In this event, each party will select a competent and impartial appraiser. However, in the event of a government -declared disaster, as defined in the Government Code, appraisal may be requested by either you or us but shall not be compelled. Each party shall notify the other of the appraiser selected within 20 days of the request. The two appraisers will select an umpire. If they cannot agree within 15 days, either may request that selection be made by a judge of a court having jurisdiction. The appraisers will state separately the value of the property and actual cash value and amount of loss. If they fail to agree, they will submit their differences to the umpire. A decision agreed to by any two will set the amount of actual cash value and loss and will be binding. Each party will: a. Pay its chosen appraiser; and b. Bear the other expenses of the appraisal and umpire equally. If there is an appraisal, we will still retain our right to deny the claim. 3. Paragraph E.5.d.(1)(c) of the Loss Payment Property Loss Conditions is deleted. BP 0155 07 20 © Insurance Services Office, Inc., 2020 Page 1 of 6 4. Paragraphs E.5.d.(1)(d) and E.5.d.(5) of the Loss Payment Property Loss Conditions are replaced as follows: (d) We will not pay on a replacement cost basis for any loss or damage until the lost or damaged property is actually repaired or replaced. Prior to such repair or replacement, we will pay the actual cash value of the lost or damaged property as described in Paragraph A.1. of this Endorsement. If the actual cash value does not exhaust the applicable Limit of Insurance, we will then pay the difference between the actual cash value and the replacement cost, provided that the repair or replacement is completed: (i) Within 12 months after we pay the actual cash value; or (ii) Within 36 months after we pay the actual cash value if the loss or damage relates to a state of emergency under California Law. The following provision applies to real property which is used predominantly for residential purposes and consisting of not more than four dwelling units, and to coverage on tenants' household personal property in a residential unit: If you, acting in good faith and with reasonable diligence, encounter a delay or delays in approval for, or reconstruction of, the residence that are beyond your control, we shall provide one or more additional extensions of six months for good cause. Circumstances beyond your control include, but are not limited to: (i) Unavoidable construction permit delays; (ii) The lack of necessary construction materials; or (iii) The unavailability of contractors to perform the necessary work. Nothing in this Paragraph (d) constitutes a waiver of our right to deny the claim for any valid reason or to restrict payment in cases of suspected fraud. (5) Tenants' improvements and betterments at: (a) Replacement cost in accordance with the terms set forth in Paragraph (d) above. (b) A proportion of your original cost if the property is not repaired or replaced. We will determine the proportionate value as follows: (i) Multiply the original cost by the number of days from the loss or damage to the expiration of the lease; and (ii) Divide the amount determined in (i) above by the number of days from the installation of improvements to the expiration of the lease. If your lease contains a renewal option, the expiration of the renewal option period will replace the expiration of the lease in this procedure. (c) Nothing if others pay for repairs or replacement. B. Section III — Common Policy Conditions is amended as follows: 1. Paragraphs A.2. and A.3. Cancellation are replaced by the following: 2. All Policies In Effect For 60 Days Or Less If this Policy has been in effect for 60 days or less, and is not a renewal of a policy we have previously issued, we may cancel this Policy by mailing or delivering to the first Named Insured at the mailing address shown in the Policy and to the producer of record, advance written notice of cancellation, stating the reason for cancellation, at least: a. 10 days before the effective date of cancellation if we cancel for: (1) Nonpayment of premium; or (2) Discovery of fraud by: (a) Any insured or his or her representative in obtaining this insurance; or (b) You or your representative in pursuing a claim under this Policy. Page 2 of 6 © Insurance Services Office, Inc., 2020 BP 0155 07 20 b. 30 days before the effective date of (b) Continuation of the policy cancellation if we cancel for any other coverage would: reason. (1) Place us in violation of 3. All Policies In Effect For More Than 60 California Law or the laws of Days the state where we are a. If this Policy has been in effect for more domiciled; or than 60 days, or is a renewal of a policy (ii) Threaten our solvency. we issued, we may cancel this Policy (7) A change by you or your only upon the occurrence, after the representative in the activities or effective date of the Policy, of one or property of the commercial or more of the following: industrial enterprise, which results in (1) Nonpayment of premium, including a materially added, increased or payment due on a prior policy we changed risk, unless the added, issued and due during the current increased or changed risk is included policy term covering the same risks. in the Policy. (2) Discovery of fraud or material b. We will mail or deliver advance written misrepresentation by: notice of cancellation, stating the reason (a) Any insured or his or her for cancellation, to the first Named representative in obtaining this Insured, at the mailing address shown in insurance; or the Policy, and to the producer of record, at least: (b) You or your representative in pursuing a claim under this (1) 10 days before the effective date of Policy. cancellation if we cancel for nonpayment of premium or discovery (3) A judgment by a court or an of fraud; or administrative tribunal that you have violated a California or federal law, (2) 30 days before the effective date of having as one of its necessary cancellation if we cancel for any elements an act which materially other reason listed in Paragraph 3.a. increases any of the risks insured 2. The following provision is added to Paragraph against. A. Cancellation: (4) Discovery of willful or grossly 7. Residential Property negligent acts or omissions, or of This provision applies to coverage on real any violations of state laws or property which is used predominantly for regulations establishing safety residential purposes and consisting of not standards, by you or your more than four dwelling units, and to representative, which materially coverage on tenants' household personal increase any of the risks insured property in a residential unit. If such against. coverage has been in effect for 60 days or (5) Failure by you or your representative less and is not a renewal of coverage we to implement reasonable loss control previously issued, we may cancel this requirements, agreed to by you as a coverage for any reason, except that we condition of policy issuance, or which may not cancel this Policy solely because: were conditions precedent to our use a. Corrosive soil conditions exist on the of a particular rate or rating plan, if premises; or that failure materially increases any of the risks insured against. b. The first Named Insured has: (6) A determination by the (1) Accepted an offer of earthquake Commissioner of Insurance that the: coverage; or (a) Loss of, or changes in, our (2) Cancelled or did not renew a policy reinsurance covering all or part of issued by the California Earthquake the risk would threaten our Authority (CEA) that included an financial integrity or solvency; or earthquake policy premium surcharge. BP 0155 07 20 © Insurance Services Office, Inc., 2020 Page 3 of 6 However, we shall cancel this Policy if the first Named Insured has accepted a new or renewal policy issued by the CEA that includes an earthquake policy premium surcharge but fails to pay the earthquake policy premium surcharge authorized by the CEA. If a state of emergency under California Law is declared and the residential property is located in any ZIP Code within or adjacent to the fire perimeter, as determined by California Law, we may not cancel this Policy for one year, beginning from the date the state of emergency is declared, solely because the dwelling or other structure is located in an area in which a wildfire has occurred. However, we may cancel: a. When you have not paid the premium, at any time by letting you know at least 10 days before the date cancellation takes effect; b. If willful or grossly negligent acts or omissions by the named insured, or his or her representatives, are discovered that materially increase any of the risks insured against; or c. If there are physical changes in the property insured . against, beyond the catastrophe -damaged condition of the structures and surface landscape, which result in the property becoming uninsurable. 3. Paragraph C. Concealment, Misrepresentation Or Fraud is replaced by the following with respect to loss or damage caused by fire: We do not provide coverage to the insured who, whether before or after a loss, has committed fraud or intentionally concealed or misrepresented any material fact or circumstance concerning: a. This Policy; b. The Covered Property; c. That insured's interest in the Covered Property; or d. A claim under this Policy. 4. Paragraph C. Concealment, Misrepresentation Or Fraud is replaced by the following with respect to loss or damage caused by a Covered Cause of Loss other than fire: This Policy is void if any insured, whether before or after a loss, has committed fraud or intentionally concealed or misrepresented any material fact or circumstance concerning: a. This Policy; b. The Covered Property; c. An insured's interest in the Covered Property; or d. A claim under this Policy. 5. Paragraph H.1. Other Insurance is replaced by the following (with respect to coverage provided under Section 1— Property): If there is other insurance covering the same loss or damage, we will pay our share of the covered loss or damage. Our share is the proportion that the applicable Limit of Insurance bears to the Limits of Insurance of all insurance covering on the same basis. We will not pay more than the applicable Limit of Insurance of Section I — Property. 6. The following paragraph is added and supersedes any provisions to the contrary: M. Nonrenewal 1. Subject to the provisions of Paragraphs 2. and 3. below, if we elect not to renew this Policy, we will mail or deliver written notice stating the reason for nonrenewal to the first Named Insured shown in the Declarations and to the producer of record, at least 60 days, but not more than 120 days, before the expiration or anniversary date. We will mail or deliver our notice to the first Named Insured, and to the producer of record, at the mailing address shown in the Policy. 2. Residential Property This provision applies to coverage on real property used predominantly for residential purposes and consisting of not more than four dwelling units, and to coverage on tenants' household property contained in a residential unit. Page 4 of 6 © Insurance Services Office, Inc., 2020 BP 0155 07 20 If this Policy provides coverage as described in the preceding paragraph, and we elect not to renew this Policy, we will mail or deliver written notice, stating the reason for nonrenewal, to the first Named Insured shown in the Declarations, and to the producer of record, at the mailing address shown in the Policy, at least 75 days, but not more than 120 days, before the expiration or anniversary date. If we fail to give the first Named Insured shown in the Declarations notice of nonrenewal at least 75 days prior to the policy expiration, as required in the paragraph above, this Policy, with no change in its terms and conditions, shall remain in effect for 75 days from the date that the notice of nonrenewal is delivered or mailed to the named insured. A notice to this effect shall be provided by us to the first Named Insured with the notice of nonrenewal. We may elect not to renew such coverage for any reason, except that we will not refuse to renew such coverage solely because: a. The first Named Insured has accepted an offer of earthquake coverage. However, the following applies only to insurers who are associate participating insurers as established by Cal. Ins. Code Section 10089.16. We may elect not to renew such coverage after the first Named Insured has accepted an offer of earthquake coverage, if one or more of the following reasons applies: (1) The nonrenewal is based on sound underwriting principles that relate to the coverages provided by this Policy and that are consistent with the approved rating plan and related documents filed with the Department of Insurance as required by existing law; (2) The Commissioner of Insurance finds that the exposure to potential losses will threaten our solvency or place us in a hazardous condition. A hazardous condition includes, but is not limited to, a condition in which we make claims payments for losses resulting from an earthquake that occurred within the preceding two years and that required a reduction 'in policyholder surplus of at least 25% for payment of those claims; or (3) We have: (a) Lost or experienced a substantial reduction in the availability or scope of reinsurance coverage; or (b) Experienced a substantial increase in the premium charged for reinsurance coverage of our residential property insurance policies; and the Commissioner has approved a plan for the nonrenewals that is fair and equitable, and that is responsive to the changes in our reinsurance position. b. The first Named Insured has cancelled or did not renew a policy, issued by the California Earthquake Authority that included an earthquake policy premium surcharge. c. Corrosive soil conditions exist on the premises. BP 0155 07 20 © Insurance Services Office, Inc., 2020 Page 5 of 6 If a state of emergency under California Law is declared and the residential property is located in any ZIP Code within or adjacent to the fire perimeter, as determined by California Law, we may not nonrenew this Policy for one year, beginning from the date the state of emergency is declared, solely because the dwelling or other structure is located in an area in which a wildfire has occurred. However, we may nonrenew: a. If willful or grossly negligent acts or omissions by the named insured, or his or her representatives, are discovered that materially increase any of the risks insured against; b. If losses unrelated to the postdisaster loss condition of the property have occurred that would collectively render the risk ineligible for renewal; or f. If we have made a written offer to the first Named Insured, in accordance with the timeframes shown in Paragraph 1., to renew the Policy under changed terms or conditions or at an increased premium rate, when the increase exceeds 25%. C. The following changes apply only to Information Security Protection Endorsement BP 15 07 if it is attached to this Policy: 1. Paragraph (2) of Insuring Agreement d. Security Breach Liability is replaced by the following: c. If there are physical changes in the 2. property insured against, beyond the catastrophe -damaged condition of the structures and surface landscape, which result in the property becoming uninsurable. 3. We are not required to send notice of nonrenewal in the following situations: a. If the transfer or renewal of a policy, without any changes in terms, conditions or rates, is between us and a member of our insurance group. b. If the Policy has been extended for 90 days or less, provided that notice has been given in accordance with Paragraph 1. c. If you have obtained replacement coverage, or if the first Named Insured has agreed, in writing, within 60 days of the termination of the Policy, to obtain that coverage. d. If the Policy is for a period of no more than 60 days and you are notified at the time of issuance that it will not be renewed. e. If the first Named Insured requests a change in the terms or conditions or risks covered by the Policy within 60 days of the end of the policy period. (2) We will pay for "defense expenses" as a result of a "claim" in the form of a "regulatory proceeding" first made against the insured during the "policy period" or during the applicable Extended Reporting Period, in response to a "wrongful act" or a series of "interrelated wrongful acts" covered under Paragraph d.(1). Paragraph d. of the definition of 'loss" in Paragraph V. is replaced by the following: d. With respect to Insuring Agreements d. Security Breach Liability and g. Web Site Publishing Liability: Compensatory damages, settlement amounts and costs awarded pursuant to judgments or settlements. "Loss" does not include: (1) Civil or criminal fines or penalties imposed by law; (2) Punitive or exemplary damages; (3) The multiplied portion of multiplied damages; (4) Taxes; (5) Royalties; (6) The amount of any disgorged profits; or (7) Matters that are uninsurable pursuant to law. Page 6 of 6 © Insurance Services Office, Inc., 2020 BP 0155 07 20 POLICY NUMBER: BP 1593633D BUSINESSOWNERS BP 04 02 01 06 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. ADDITIONAL INSURED - MANAGERS OR LESSORS OF PREMISES This endorsement modifies insurance provided under the following: BUSINESSOWNERS COVERAGE FORM SCHEDULE Name of Person or Organization (Additional Insured): Effective Date: 06/04/2021 BAYHARBOR MANAGEMENT SERV, INC. 3900 PULLMAN ST. COSTA MESA, CA 92626 Designation of Premises (Part Leased To You) 10413 LOS ALAMITOS BLVD. LOS ALAMITOS, CA 90720 "Information required to complete this Schedule, if not shown above, will be shown in the Declarations A. The following is added to Paragraph C. WHO IS AN INSURED in Section II - Liability: 3. The person or organization shown in the Schedule is also an insured, but only with respect to liability arising out of the ownership, maintenance or use that part of the premises leased to you and shown in the Schedule B. The following exclusions are added to Section II - Liability: This insurance does not apply to: 1. Any "occurrence" that takes place after you cease to be a tenant in the premises described in the Schedule 2. Structural alterations, new construction or demolition operations performed by or for the person or organization designated in the Schedule BP 04 02 01 06 Copyright, ISO Properties, Inc., 2004 Page 1 of 1 BUSINESSOWNERS BP 0417 01 10 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. EMPLOYMENT-RELATED PRACTICES EXCLUSION This endorsement modifies insurance provided under the following: BUSINESSOWNERS COVERAGE FORM The following exclusion is added to Paragraph B.I. Exclusions — Applicable To Business Liability Coverage in Section 11— Liability: This insurance does not apply to "bodily in- jury" or "personal and advertising injury" to: (1) A person arising out of any: (a) Refusal to employ that person; (b) Termination of that person's em- ployment; or (c) Employment-related practices, poli- cies, acts or omissions, such as co- ercion, demotion, evaluation, reas- signment, discipline, defamation, harassment, humiliation, discrimina- tion or malicious prosecution di- rected at that person; or (2) The spouse, child, parent, brother or sister of that person as a consequence of "bodily injury" or "personal and adver- tising injury" to that person at whom any of the employment-related practices de- scribed in Paragraph (a), (b) or (c) above is directed. This exclusion applies: (1) Whether the injury -causing event de- scribed in Paragraph (a), (b) or (c) above occurs before employment, dur- ing employment or after employment of that person; (2) Whether the insured may be liable as an employer or in any other capacity; and (3) To any obligation to share damages with or repay someone else who must pay damages because of the injury. BP 04 17 01 10 0 Insurance Services Office, Inc., 2009 Page 1 of 1 This endorsement modifies insurance provided under the following: BUSINESSOWNERS COVERAGE FORM Exclusion Of War, Military Action And Terrorism (Coverage For Certain Fire Losses) A. SECTION I PROPERTY; B. Exclusions; 1. f. War and Military Action is deleted in its entirety and is replaced by the following: 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. With respect to any action that comes within the terms of this exclusion and involves nuclear reaction or radiation, or radioactive contamination, this War And Military Action Exclusion supersedes the Nuclear Hazard Exclusion. B. SECTION I PROPERTY; B. Exclusions; 1. item t. is added: t. Terrorism "Terrorism" including any action taken in hindering or defending against an actual or expected incident of "terrorism" regardless of any other cause or event that contributes concurrently. The following exception to this exclusion is applicable: If an act of "terrorism" results in fire, we will pay for the loss or damage caused by that fire. Such coverage for fire applies only to direct loss or damage by fire to Covered Property. Therefore, for example, the coverage does not apply to insurance provided under Business Income and/or Extra Expense Additional Coverages. But with respect to any such activity that also comes within the terms of the War and Military Action Exclusion, that exclusion supersedes this "Terrorism" Exclusion. In the event of an act of "terrorism" that involves nuclear reaction or radiation, or radioactive contamination, this "Terrorism" Exclusion supersedes the Nuclear Hazard Exclusion. A. SECTION II — LIABILITY; B. Exclusions; 1. Applicable To Business Liability BP 103 (01-15) Page 1 of 2 Coverage; i. War and SECTION II — LIABILITY; B. Exclusions; 2. Applicable To Medical Expenses Coverage; h. is deleted in its entirety and replaced by the following: i. War or Terrorism "Bodily injury", "property damage", "personal and advertising injury" arising, directly or indirectly out of (1) War, including undeclared or civil war; or (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; (3) Insurrection, rebellion, revolution, usurped power, or action taken by governmental authority in hindering or defending against any of these; or (4) "Terrorism", including any action taken in hindering or defending against an actual or expected incident of "terrorism" regardless of any other cause or event that contributes concurrently. The following definition is added with respect to the provisions of this endorsement: Terrorism means activities against persons, organizations or property of any nature: (1) That involve the following or preparation for the following: (a) Use or threat of force or violence; or (b) Commission or threat of a dangerous act; or (c) Commission or threat of an act that interferes with or disrupts an electronic, communication, information, or mechanical system; and (2) When one or both of the following applies: (a.) The effect is to intimidate or coerce a government, or to cause chaos among the civilian population or any segment thereof, or to disrupt any segment of the economy; or (b) It is reasonable to believe that the intent is to, intimidate or coerce a government, or to seek revenge or retaliate, or to further political, ideological, religious, social or economic objectives or to express (or express opposition to) a philosophy or ideology. All other terms and conditions of this policy remain unchanged. This. endorsement is a part of your policy and takes effect on the effective date of your policy unless another effective date is shown. BP 103 (01-15) Page 2 of 2 UNITED STATES LIABILITY INSURANCE GROUP WAYNE, PENNSYLVANIA This endorsement modifies insurance provided under the following: BUSINESSOWNERS COVERAGE FORM Actual Cash Value Definition It is agreed the following is added to SECTION I — PROPERTY; H. Property Definitions: "Actual Cash Value" means replacement cost less depreciation. All other terms and conditions of this policy remain unchanged. This endorsement is a part of your policy and takes effect on the effective date of your policy unless another effective date is shown. BP 107 (04-08) Page 1 of 1 UNITED STATES LIABILITY INSURANCE GROUP WAYNE, PENNSYLVANIA This endorsement modifies insurance provided under the following: BUSINESSOWNERS COVERAGE FORM PROTECTIVE DEVICES OR SERVICES PROVISIONS SCHEDULE Premises Building Symbol Description of Protective Safeguard Number Number ALL ALL P-6 All electric is on functioning and operational circuit breakers ALL ALL P-5 Functioning and operational smoke/heat detectors in all units or occupancies ALL ALL P-7 Functioning and operational central station burglar alarms with a monitoring contract. The following is added to the policy: A. Protective Safeguards 1. You are required to have and maintain the protective devices or services listed in the Schedule above. 2. The protective safeguards to which this endorsement applies are identified by the following symbols: a. "P-1" Automatic Sprinkler System, including related supervisory services. Automatic Sprinkler System means: 1) Any automatic fire protective or extinguishing system, including connected: a) Sprinklers and discharge nozzles; b) Ducts, pipes, valves and fittings; c) Tanks, their components parts and supports; and d) Pumps and private fire protection mains. 2) When supplied from an automatic fire protective system: a) Non -automatic fire protective systems; and b) Hydrants, standpipes and outlets. b. "P-2" Automatic Fire Alarm, protecting the entire building, that is: 1) Connected to a central station; or 2) Reporting to a public or private fire alarm station. c. "P-3" Security Service, with a recording system or watch clock making hourly rounds covering the entire building, when the premises are not in actual operations. d. "P-4" Service Contract with a privately owned fire department providing fire protection service to the described premises. e. "P-5" Functioning and operational smoke/heat detectors in all units or occupancies. f. "P-6" All Electrical in on functioning and operational circuit breakers. g. "P-7" Functioning and operational central station burglar alarm with a monitoring contract. h. "P-8" Functioning and operational surge protectors on all computer and audio -video equipment. i. "P-9" Refrigeration maintenance contract on all refrigeration equipment. BP 115 (07/08) Page 1 of 3 Includes copyrighted material of Insurance Services Office, Inc. reprinted with permission j. "P-10" Functioning and operational automatic fire suppression system per NFPA #96 on all cooking equipment. k. "P-15" Any item on a display rack with a sales price of $250 or more must be affixed with a security sensor or must be chained and locked to a rack. 1. "P-16" The building is protected from lightning with an approved NFPA 780 installation. in. "P-17" Flammable liquids must be stored in NFPA #30 approved cabinets. n. "P-18" No smoking signs must be posted and enforced. o. "P-21" The protective system described in the schedule. The following is added to Paragraph B. Exclusions in Section I - Property: With respects to "P-1", 46P-2", 66P-31, "P-4" "P-515, "P-675, "P-83, "P-10", "P-16", "P-17", and "P-18", we will not pay for loss or damage caused by or resulting from fire if, prior to the fire, you: p. Knew of any suspension or impairment in any protective safeguard listed in the Schedule above and failed to notify us of that fact; or q. Failed to maintain any protective safeguard listed in the Schedule above, and 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. With respect to "P-3", "P-7"and "P-15", we will not pay for loss or damage caused by or resulting from vandalism, burglary, theft or any other act of stealing if, prior to the vandalism, burglary, theft or any other act of stealing, you: a. Knew of any suspension or impairment in any protective safeguard listed in the Schedule above and failed to notify us of that fact; or b. Failed to maintain any protective safeguard listed in the Schedule above, and over which you had control, in complete working order. With respect to "P-6" and "P-8" we will not pay for loss or damage caused by or resulting from "equipment breakdown", electrical disturbance or expediting expenses as a result of an electrical disturbance if, prior to the "equipment breakdown" you: a. Knew of any suspension or impairment in any protective safeguard listed in the Schedule above and failed to notify us of that fact; or b. Failed to maintain any protective safeguard listed in the Schedule above, and over which you had control, in complete working order. With respect to "P-9" we will not pay for loss or damage caused by or resulting from "equipment breakdown", spoilage or expediting expenses as a result of spoilage if, prior to the "equipment breakdown" you: a. Knew of any suspension or impairment in any protective safeguard listed in the Schedule above and failed to notify us of that fact; or b. Failed to maintain any protective safeguard listed in the Schedule above, and over which you had control, in complete working order. With respect to "P-21" we will not pay for loss or damage caused by or resulting from fire, vandalism, burglary, theft or any other act of stealing, "equipment breakdown", electrical disturbance or expediting expenses as a result of an electrical disturbance, "equipment breakdown", spoilage or expediting expenses as a result of spoilage, as applicable, if you: BP 115 (07/08) Page 2 of 3 Includes copyrighted material of Insurance Services Office, Inc. reprinted with permission a. Knew of any suspension or impairment in any protective safeguard listed in the Schedule above and failed to notify us of that fact; or b. Failed to maintain any protective safeguard listed in the Schedule above, and over which you had control, in complete working order. All other terms and conditions of this policy remain unchanged. This endorsement is a part of your policy and takes effect on the effective date of your policy unless another effective date is shown. BP 115 (07/08) Page 3 of 3 Includes copyrighted material of Insurance Services Office, Inc. reprinted with permission UNITED STATES LIABILITY INSURANCE GROUP WAYNE, PENNSYLVANIA This endorsement modifies insurance provided under the following: BUSINESSOWNERS COVERAGE FORM CALIFORNIA CHANGES Section I — Property is amended as follows: 1. With respect to an "open policy", the following is added to any provision which uses the term actual cash value: a. In the event of a total loss to a building or structure, actual cash value is calculated as the Limit of Insurance applicable to that building or structure or the fair market value of the building or structure, whichever is less. b. In the event of a partial loss to a building or structure, actual cash value is calculated as b.(1) or b.(2), whichever is less: (1) The amount it would cost to repair, rebuild or replace the property less a fair and reasonable deduction for physical depreciation of the components of the building or structure that are normally subject to repair or replacement during its useful life. Physical depreciation is based upon the condition of the property at the time of loss; (2) The Limit of Insurance applicable to the property. c. In the event of a partial or total loss to Covered Property other than a building or structure, actual cash value is calculated as c.(1) or c.(2), whichever is less: (1) The amount it would cost to repair or replace the property less a fair and reasonable deduction for physical depreciation, based on the condition of the property at the time of loss; (2) The Limit of Insurance applicable to the property. d. An 'open policy" is a policy under which the value of Covered Property is not fixed at policy inception, but is determined at the time of loss in accordance with policy provisions on valuation. 2.. Paragraph E.2. Appraisal Property Loss Conditions is replaced by the following: 2. Appraisal If we and you disagree on the value of the property or the amount of loss, either may make written request for an appraisal of the loss. If the request is accepted, each party will select a competent and impartial appraiser. Each party shall notify the other of the appraiser selected within twenty (20) days of the request. The two appraisers will select an umpire. If they cannot agree within fifteen (15) days, either may request that selection be made by a judge of a court having jurisdiction. The appraisers will state separately the value of the property and amount of loss. If they fail to agree, they will BP 118 (08-08) Page 1 of 6 submit their differences to the umpire. A decision agreed to by any two will be binding. Each party will: a. Pay its chosen appraiser; and b. Bear the other expenses of the appraisal and umpire equally. If there is an appraisal, we will still retain our right to deny the claim. 3. Paragraph E.6.d.(1)(c) of the Loss Payment Condition is deleted. 4. Paragraphs E.6.d.(1)(d) and E.6.d.(5) of the Loss Payment Condition are replaced as follows: (d) We will not pay on a replacement cost basis for any loss or damage until the lost or damaged property is actually repaired or replaced. Prior to such repair or replacement, we will pay the actual cash value of the lost or damaged property as described in Paragraph A.I. of this endorsement. If the actual cash value does not. exhaust the applicable limit of insurance, we will then pay the difference between the actual cash value and the replacement cost, provided that the repair or replacement is completed: (i) Within twelve (12) months after we pay the actual cash value; or (ii) Within twenty-four (24) months after we pay the actual cash value if the loss or damage relates to a state of emergency as described in Section 8558 of the Government Code; unless we extend the time period for good cause. Nothing in this Paragraph (d) constitutes a waiver of our right to deny the claim for any valid reason or to restrict payment in cases of suspected fraud. (5) Tenants' Improvements and Betterments at: (a) Replacement cost in accordance with the terms set forth in Paragraph (d) above. (b) A proportion of your original cost if the property is not repaired or replaced. We will determine the proportionate value as follows: (i) Multiply the original cost by the number of days from the loss or damage to the expiration of the lease; and (ii) Divide the amount determined in (i) above by the number of days from the installation of improvements to the expiration of the lease. If your lease contains a renewal option, the expiration of the renewal option period will replace the expiration of the lease in this procedure. (c) Nothing if others pay for repairs or replacement. Section II — Liability is amended as follows: The term spouse is replaced by the following: Spouse or a registered domestic partner under California law. BP 118 (08-08) Page 2 of 6 Section III — Common Policy Conditions is amended as follows: 1. Paragraphs A.2. and A.3. Cancellation are replaced by the following: 2. All Policies In Effect For 60 Days Or Less If this policy has been in effect for sixty (60) days or less, and is not a renewal of a policy we have previously issued, we may cancel this policy by mailing or delivering to the first Named Insured at the mailing address shown in the policy and to the producer of record, advance written notice of cancellation, stating the reason for cancellation, at least: a. Ten (10) days before the effective date of cancellation if we cancel for: (1) Nonpayment of premium; or (2) Discovery of fraud by: (a) Any insured or his or her representative in obtaining this insurance; or (b) You or your representative in pursuing a claim under this policy. b. Thirty (30) days before the effective date of cancellation if we cancel for any other reason. 3. All Policies In Effect For More Than 60 Days a. If this policy has been in effect for more than 60 days, or is a renewal of a policy we issued, we may cancel this policy only upon the occurrence, after the effective date of the policy, of one or more of the following: (1) Nonpayment of premium, including payment due on a prior policy we issued and due during the current policy term covering the same risks. (2) Discovery of fraud or material misrepresentation by: (a) Any insured or his or her representative in obtaining this insurance; or (b) You or your representative in pursuing a claim under this policy. (3) A judgment by a court or an administrative tribunal that you have violated a California or Federal law, having as one of its necessary elements an act which materially increases any of the risks insured against. (4) Discovery of willful or grossly negligent acts or omissions, or of any violations of state laws or regulations establishing safety standards, by you or your representative, which materially increase any of the risks insured against. (5) Failure by you or your representative to implement reasonable loss control requirements, agreed to by you as a condition of policy issuance, or which were conditions precedent to our use of a particular rate or rating plan, if that failure materially increases any of the risks insured against. (6) A determination by the Commissioner of Insurance that the: (a) Loss of, or changes in, our reinsurance covering all or part of the risk would threaten our financial integrity or solvency; or (b) Continuation of the policy coverage would: (i) Place us in violation of California law or the laws of the state where we are domiciled; or BP 118 (08-08) Page 3 of 6 (ii) Threaten our solvency. (7) A change by you or your representative in the activities or property of the commercial or industrial enterprise, which results in a materially added, increased or changed risk, unless the added, increased or changed risk is included in the policy. b. We will mail or deliver advance written notice of cancellation, stating the reason for cancellation, to the first Named Insured, at the mailing address shown in the policy, and to the producer of record, at least: (1) 10 days before the effective date of cancellation if we cancel for nonpayment of premium or discovery of fraud; or (2) 30 days before the effective date of cancellation if we cancel for any other reason listed in Paragraph 3.a. 2. The following provision is added to Paragraph A. Cancellation: 7. Residential Property This provision applies to coverage on real property which is used predominantly for residential purposes and consisting of not more than four dwelling units, and to coverage on tenants' household personal property in a residential unit. If such coverage has been in effect for sixty (60) days or less and is not a renewal of coverage we previously issued, we may cancel this coverage for any reason, except that we may not cancel this policy solely because: a. Corrosive soil conditions exist on the premises; or b. The first Named Insured has: (1) Accepted an offer of earthquake coverage; or (2) Cancelled or did not renew a policy issued by the California Earthquake Authority (CEA) that included an earthquake policy premium surcharge. However, we shall cancel this policy if the first Named Insured has accepted a new or renewal policy issued by the CEA that includes an earthquake policy premium surcharge but fails to pay the earthquake policy premium surcharge authorized by the CEA. 3. Paragraph C. Concealment, Misrepresentation Or Fraud is replaced by the following with respect to loss or damage caused by fire: We do not provide coverage to the insured who, whether before or after a loss, has committed fraud or intentionally concealed or misrepresented any material fact or circumstance concerning: a. This policy; b. The Covered Property; c. That insured's interest in the Covered Property;, or d. A claim under this policy. 4. Paragraph C. Concealment, Misrepresentation Or Fraud is replaced by the following with respect to loss or damage caused by a Covered Cause of Loss other than fire: BP 118 (08-08) Page 4 of 6 This policy is void if any insured, whether before or after a loss, has committed fraud or intentionally concealed or misrepresented any material fact or circumstance concerning: a. This policy; b. The Covered Property; c. An insured's interest in the Covered Property; or d. A claim under this policy. 5. Paragraph 11.1. Other Insurance is replaced by the following (with respect to coverage provided under Section I — Property): If there is other insurance covering the same loss or damage, we will pay our share of the covered loss or damage. Our share is the proportion that the applicable limit of insurance bears to the limits of insurance of all insurance covering on the same basis. We will not pay more than the applicable Limit of Insurance of Section I — Property. 6. The following paragraph is added and supersedes any provisions to the contrary: M. Non -renewal 1. Subject to the provisions of Paragraphs 2. and 3. below, if we elect not to renew this policy, we will mail or deliver written notice stating the reason for non- renewal to the first Named Insured shown in the Declarations and to the producer of record, at least sixty (60) days, but not more than one hundred twenty (120) days, before the expiration or anniversary date. We will mail or deliver our notice to the first Named Insured, and to the producer of record, at the mailing address shown in the policy. 2. Residential Property This provision applies to coverage on real property used predominantly for residential purposes and consisting of not more than four dwelling units, and to coverage on tenants' household property contained in a residential unit. We may elect not to renew such coverage for any reason, except that we will not refuse to renew such coverage solely because: a. The first Named Insured has accepted an offer of earthquake coverage. However, the following applies only to insurers who are associate participating insurers as established by Cal. Ins. Code Section 10089.16. We may elect not to renew such coverage after the first Named Insured has accepted an offer of earthquake coverage, if one or more of the following reasons applies: (1) The nonrenewal is based on sound underwriting principles that relate to the coverages provided by this policy and that are consistent with the approved rating plan and related documents filed with the Department of Insurance as required by existing law; (2) The Commissioner of Insurance finds that the exposure to potential losses will threaten our solvency or place us in a hazardous condition. A hazardous condition includes, but is not limited to, a condition in which we make claims payments for losses resulting from an earthquake that BP 118 (08-08) Page 5 of 6 occurred within the preceding two years and that required a reduction in policyholder surplus of at least 25% for payment of those claims; or (3) We have: (a) Lost or experienced a substantial reduction in the availability or scope of reinsurance coverage; or (b) Experienced a substantial increase in the premium charged for reinsurance coverage of our residential property insurance policies; and the Commissioner has approved a plan for the non -renewals that is fair and equitable, and that is responsive to the changes in our reinsurance position. b. The first Named Insured has cancelled or did not renew a policy, issued by the California Earthquake Authority that included an earthquake policy premium surcharge. c. Corrosive soil conditions exist on the premises. 3. We are not required to send notice of non -renewal in the following situations: a. If the transfer or renewal of a policy,without any changes in terms, conditions, or rates, is between us and a member of our insurance group. b. If the policy has been extended for ninety (90) days or less, provided that notice has been given in accordance with Paragraph 1. c. If you have obtained replacement coverage, or if the first Named Insured has agreed, in writing, within sixty (60) days of the termination of the policy, to obtain that coverage. d. If the policy is for a period of no more than sixty (60) days and you are notified at the time of issuance that it will not be renewed. e. If the first Named Insured requests a change in the terms or conditions or risks covered by the policy within sixty (60) days of the end of the policy period. f. If we have made a written offer to the first Named Insured, in accordance with the timeframes shown in Paragraph 1., to renew the policy under changed terms or conditions or at an increased premium rate, when the increase exceeds twenty-five percent (25%). All other terms and conditions of this policy remain unchanged. This endorsement is a part of your policy and takes effect on the effective date of your policy unless another effective date is shown. BP 118 (08-08) Page 6 of 6 UNITED STATES LIABILITY INSURANCE GROUP WAYNE, PENNSYLVANIA This Endorsement modifies insurance provided under the following: BUSINESSOWNERS COVERAGE FORM BUSINESS INCOME AND EXTRA EXPENSE LIMIT It is agreed that under the SECTION I — PROPERTY; A. Coverage; 5. Additional Coverages; f. Business Income; (4) "This Additional Coverage is not subject to the Limits of Insurance of SECTION I — PROPERTY." is deleted in its entirety and replaced with the following: (4) The most we will pay under the Business Income additional coverages is the Limit of Insurance which will be shown in the DECLARATIONS or EXTENSION OF DECLARATIONS." It is agreed that under the SECTION I — PROPERTY; A. Coverage; 5. Additional Coverages; g. Extra Expense; (4) "We will only pay for Extra Expense that occurs within 12 consecutive months after the date of direct physical loss or damage. This Additional Coverage is not subject to the Limits of Insurance of SECTION I — PROPERTY." is deleted in its entirety and replaced with the following: (4) We will only pay for Extra Expense that occurs within 12 consecutive months after the date of direct physical loss or damage. The most we will pay under the Extra Expense additional coverages is the Limit of Insurance which will be shown in the DECLARATIONS or EXTENSION OF DECLARATIONS." The limit shown for Business Income and Extra Expense on the DECLARATIONS or EXTENSION OF DECLARATIONS is the total limit for both additional coverages. All other terms and conditions of this Policy remain unchanged. This endorsement is a part of your Policy and takes effect on the effective date of your Policy unless another effective date is shown. BP —15 (7/04) Page 1 of 1 BUSINESSOWNERS BP 15 05 05 14 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. Exclusion — Access Or Disclosure Of Confidential Or Personal Information And Data -Related Liability — Limited Bodily Injury Exception Not Included This endorsement modifies insurance provided under the following: BUSINESSOWNERS COVERAGE FORM A. Exclusion B.1.q. of Section II — Liability is As used in this exclusion, electronic data replaced by the following: means information, facts or computer This insurance does not apply to: programs stored as or on, created or used on, or transmitted to or from computer q. Access Or Disclosure Of Confidential Or software (including systems and Personal Information And Data -related applications software), on hard or floppy Liability disks, CD-ROMs, tapes, drives, cells, data (1) Damages, other than damages because processingdevices or any other of "personal and advertising injury', repositories of computer software which are arising out of any access to or used with electronically controlled disclosure of any person's or equipment. The term computer programs, organization's confidential or personal referred to in the foregoing description of information, including patents, trade electronic data, means a set of related secrets, processing methods, customer electronic instructions which direct the lists, financial information, credit card operations and functions of a computer or information, health information or any device connected to it, which enable the other type of nonpublic information; or computer or device to receive, process, (2) Damages arising out of the loss of, loss store, retrieve or send data. 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 Paragraph (1) or (2) above. BP 15 05 0514 © Insurance Services Office, Inc., 2013 Page 1 of 2 B., The, following , ,added to -ParagraphLB.1.p. Thisexclusionapplieseven if Oaare .#AisR PersonaL`Aji'd1.,Advd Exclusion of zlaimed, Jornoiitici6or.60stscredit - edibn-I Limil t -mom bring forenqiq expenses, This�insuranbe,does.not apply to: _mages ' § p NOreI6fl6fi-.exppnses,&- 66y,Rfier i6ss, 'i -d'u r, ou -or'others �gi4or-exI566sa in d,: by y p._ Rprs9ndI.AndAdve ft"! y out,'.,of"an iiy, k.c6sseto,br,disclosure of "Personal and�a'dv"'eftisi 6 personFs S'o niz aftion's,, 60hfidbfitial Arising .out of �an y acc6ssjto,_mdisclosbr6of or E�rsonqllnfq= any person'sor-. 'dirgamiatio'n's"' 66rifitle�h, fiAk' or personal 'information,including .patents; r-;secretprocessing customer fists;_ i-' f ati ion", credit par'd-Infarmation, -ealtl informatiori`or an '# fdf'nonlJdb I' other,,tyl) I c1bfform6tion. ,Pa4e 202 @ Insurance ermi6eg Office, -Inc., 2013 BP 15 05.041.4 I T R XP UNITED STATES LIABILITY INSURANCE GROUP WAYNE, PENNSYLVANIA This endorsement modifies insurance provided under the following: BUSINESSOWNERS COVERAGE FORM SEPARATION OF INSUREDS CLARIFICATION ENDORSEMENT It is agreed: SECTION II — LIABILITY; E. Liability And Medical Expenses General Conditions; 4. Separation Of Insureds is deleted in its entirety and replaced with the following: 4. Separation of Insureds The Limits of Insurance of Section II — Liability 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, but nothing in this endorsement shall serve to increase the Limits of Insurance beyond the Per occurrence, per person, per premises, per common cause, aggregate or any similar limit stipulated in the Declarations. All other terms and conditions of this policy remain unchanged. This endorsement is a part of your policy and takes effect on the effective date of your policy unless another effective date is shown. BP 152 (01-13) Page 1 of 1 UNITED STATES LIABILITY INSURANCE GROUP WAYNE, PENNSYLVANIA This endorsement modifies insurance provided under the following: BUSINESSOWNERS COVERAGE FORM HIRED AUTO AND NON -OWNED AUTO LIABILITY A. Insurance is provided only for those coverages for which a specific limit or premium charge is shown in the Declarations. 1. HIRED AUTO LIABILITY The insurance provided under SECTION 11 — LIABILITY; A. Coverages 1. Business Liability; applies to "bodily injury' or "property damage" arising out of the maintenance or use of a "hired auto" by you or your "employees" in the course of your business. 2. NON -OWNED AUTO LIABILITY The insurance provided under SECTION 11— LIABILITY; A. Coverages 1. Business Liability; A. Coverages 1. Business Liability, applies to "bodily injury" or "property damage" arising out of the use of any "non -owned auto" in your business by any person other than you. B. For insurance provided by this endorsement only: 1. The exclusions, under SECTION 11 — LIABILITY; B. Exclusions; 1. Applicable to Business Liability Coverage; other than exclusions a., b., d., f. and 1. and the Nuclear Energy Liability Exclusion, are deleted and replaced by the following: a. "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: (a) Whether the insured may be liable as an employer or in any other capacity; and (b)To any obligation to share damages with or repay someone else who must pay damages because of injury. This exclusion does not apply to: (i) Liability assumed by the insured under an "insured contract'; or (ii)"Bodily injury" arising out of and in the course of domestic employment by the insured unless benefits for such injury are in whole or in part either payable or required to be provided under any workers compensation law. b. "Property damage" to: (1) Property owned or being transported by, or rented or loaned to the insured; or (2) Property in the care, custody or control of the insured, 2. SECTION II — LIABILITY; C. Who Is An Insured; is replaced by the following: Each of the following is an insured under this endorsement to the extent set forth below: a. You; b. Any other person using a "hired auto" with your permission; c. For a "non -owned auto", any partner or "executive officer" of yours, but only while such "non -owned auto" is being used in your business; and d. Any other person or organization, but only for their liability because of acts or omissions of an insured under a., b. or c. above. None of the following is an insured: BP 17 (11-08) Page 1 of 2 (1)Any person engaged in the business of his or her employer for "bodily injury" to any co - "employee" of such person injured in the course of employment, or to the spouse, child, parent, brother or sister of that co -"employee" as a consequence of such "bodily injury", or for any obligation to share damages with or repay someone else who must pay damages because of the injury; (2)Any partner or "executive officer" for any "auto' owned by such partner or officer or a member of his or her household; (3)Any person while employed in or otherwise engaged in duties in connection with an "auto business", other than an "auto business" you operate; (4)The owner or lessee (of whom you are a sub lessee) of a "hired auto' or the owner of a "non -owned auto" or any agent or "employee" of any such owner or lessee; (5)Any person or organization for the conduct of any current or past partnership or joint venture that is not shown as a Named Insured in the Declarations. 3. This insurance does not apply: If you regularly deliver the good or products which you are in the business of selling, 'Bodily Injury" or "Property Damage" arising out of the delivery of those goods or products. 4. This insurance does not apply: If you deliver any goods or products for a charge, `Bodily Injury" or "Property Damage" arising out of the delivery of those goods or products. C. The following additional definitions apply: 23. "Auto Business" means the business or occupation of selling, repairing, servicing, storing or parking "autos". 24. "Hired Auto" means any "auto' you lease, hire or borrow. This does not include any "auto' you lease, hire, rent or borrow from any of your "employees" or members of their households, or from any partner or "executive officer" of yours. This DOES NOT include any "Auto' you lease for a period of more than 30 consecutive days. 25. "Non -Owned Auto' means any "auto' you do not own, lease, hire, rent or borrow which is used in connection with your business. However, if you are a partnership, a "non -owned auto' does not include any "auto' owned by any partner. All other terms and conditions of this Policy remain unchanged. This endorsement is a part of your Policy and takes effect on the effective date of your Policy unless another effective date is shown. BP 17 (11-08) Page 2 of 2 UNITED STATES LIABILITY INSURANCE GROUP WAYNE, PENNSYLVANIA This endorsement modifies insurance provided under the following: BUSINESSOWNERS COVERAGE FORM ABSOLUTE EARTH MOVEMENT EXCLUSION SECTION II — LIABILITY, B. Exclusions, 1., is amended by the addition of the following: For any claim for "bodily injury", "property damage", "personal and advertising injury" or medical expenses caused by, resulting from, attributable or contributed to, or aggravated by earth movement, whether combined with water or not, including but not limited to earthquakes, landslides, subsidence, mudflow, sinkhole, erosion, or the sinking, rising, shifting, expanding, or contracting of earth or soil. This exclusion applies regardless of the cause or causes of the earth movement and whether any other cause or causes of said "bodily injury", "property damage", "personal and advertising injury" or medical expenses acted jointly, concurrently or in any sequence with said earth movement. This exclusion applies whether any cause or causes, or the cause of the earth movement would otherwise be covered under this policy. SECTION II — LIABILITY, B. Exclusions, 2., is amended by the addition of the following: For any claim for medical expenses caused by, resulting from, attributable or contributed to, or aggravated by earth movement, whether combined with water or not, including but not limited to earthquakes, landslides, subsidence, mudflow, sinkhole, erosion, or the sinking, rising, shifting, expanding, or contracting of earth or soil. This exclusion applies regardless of the cause or causes of the earth movement and whether any other cause or causes of said medical expenses acted jointly, concurrently or in any sequence with said earth movement. This exclusion applies whether any cause or causes, or the cause of the earth movement would otherwise be covered under this policy. All other terms and conditions of this policy remain unchanged. This endorsement is a part of your policy and takes effect on the effective date of your policy unless another effective date is shown. BP 31 (11-10) Page 1 of 1 UNITED STATES LIABILITY INSURANCE GROUP WAYNE, PENNSYLVANIA This endorsement modifies insurance provided under the following: BUSINESSOWNERS COVERAGE FORM PRE-EXISTING OR PROGRESSIVE DAMAGE EXCLUSION SECTION II — LIABILITY, A. Coverages, Le., is deleted in its entirety. SECTION II — LIABILITY, A. Coverages, I.b., I.d., and Le., are deleted in their entirety and replaced with the following: b. (1) This insurance applies to "bodily injury" or "property damage" only if- (a) f (a) The "bodily injury" or "property damage" is caused by an "occurrence" that takes place in the "coverage territory"; and (b) The "bodily injury" or "property damage" occurs during 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. d. Unless excluded, coverage for "bodily injury" or "property damage" shall be provided solely and exclusively by the policy of insurance which is in force at the time that the "bodily injury" or "property damage" first became known. "Bodily injury" or "property damage" will be deemed to have been first known to occur at the earliest time when any insured listed under SECTION II — LIABILITY; C. Who Is An Insured, 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; or (2) Receives a written or verbal demand or claim for damages because of the "bodily injury" or "property damage". (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" SECTION II — LIABILITY, B. Exclusions; is amended by the addition of the following: Pre-existing or Progressive Damage This insurance does not apply to "bodily injury" or "property damage", or any damage(s) arising out of or related to "bodily injury" or "property damage", whether known or unknown: a) Which first occurred, in whole or in part, prior to the inception date of this policy; or BP 32 (1.1-10) Page 1 of 2 b) Which are, or alleged to be, in the process of occurring, in whole or in part, prior to the inception date of this policy, even if the "occurrence" continues, changes or resumes during the policy period; or c) Which is in the process of being reported, investigated, in litigation or settled as of the inception date of this policy. Where applicable, b) above will use the earliest date of continuous coverage provided by this insurance company to the named insured in lieu of the inception date of this policy. All other terms and conditions of this policy remain unchanged. This endorsement is a part of your policy and takes effect on the effective date of your policy unless another effective date is shown. BP 32 (11-10) Page 2 of 2 UNITED STATES LIABILITY INSURANCE GROUP WAYNE, PENNSYLVANIA This endorsement modifies insurance provided under the following: BUSINESSOWNERS COVERAGE FORM "EQUIPMENT BREAKDOWN" ENHANCEMENT ENDORSEMENT With respect to "Equipment Breakdown", this endorsement changes coverage provided by the Businessowners Coverage Form and endorsements thereto. SECTION I — PROPERTY, A. Coverage, 4.a.(1) and 4.a.(2) are deleted. SECTION I — PROPERTY, A. Coverage, 6. Coverage Extensions, is amended by addition of the following: Expediting Expense We will pay for the expediting expense loss resulting from an "Equipment Breakdown" causing damage to Covered Property. We will pay the "reasonable extra cost" to: (1) Make temporary repairs; and (2) Expedite permanent repairs; and (3) Expedite permanent replacement. "Green" Environmental and Efficiency Improvements If Covered Property requires repair or replacement due to an "Equipment Breakdown", we will pay: (1) The lesser of the reasonable and necessary additional cost incurred by the Insured to repair or replace physically damaged Covered Property with equipment of like kind and quality that qualifies as "Green "Like kind and quality" includes similar size and capacity. (2) The additional reasonable and necessary fees incurred by the Insured for an accredited professional certified by a "Green Authority" to participate in the repair or replacement of physically damaged Covered Property as "Green". (3) The additional reasonable and necessary cost incurred by the Insured for certification or recertification of the repaired or replaced Covered Property as "Green". (4) The additional reasonable and necessary cost incurred by the Insured for "Green" in the removal, disposal or recycling of damaged Covered Property. (5) The business interruption (if covered within the Policy to which this Equipment Breakdown Enhancement Endorsement — "Green" Environmental and Efficiency Improvements is attached) loss during the additional time required for repair or replacement of Covered Property, consistent with "Green", in the coverages above. (6) We will not pay more than one hundred twenty-five percent (125%), to a maximum limit of $100,000, of what the cost would have been to repair or replace with BP 47 (11-10) Page 1 of 5 equipment of like kind and quality inclusive of fees, costs, and any business interruption loss incurred as stated above. These "Green" Environmental and Efficiency Improvements will be part of and not an addition to, the limit of liability per loss or any other sub -limits of liability of this policy. "Green" Environmental and Efficiency Improvements is subject to the following conditions: a. Covered Property does not include stock, raw materials, finished goods, "production machinery", merchandise, electronic data processing equipment not used in the functional support of the real property, process water, molds and dies, property in the open, property of others for which the Insured is legally liable, or personal property of others. b. Losses shall not be adjusted on any valuation basis other than a repair or replacement basis as per the Valuation section of this policy. c. "Equipment Breakdown" will not cover any loss covered under any other section of this policy. d. "Equipment Breakdown" will not cover any cost incurred due to any law or ordinance with which the Insured was legally obligated to comply prior to the time of the "Equipment Breakdown". Refrigerant Contamination We will pay for contamination by a refrigerant resulting from "Equipment Breakdown" causing damage to Covered Property. The most we will pay for loss or damage under this coverage is the limit shown in the Declaration for Business Personal Property or $250,000, whichever is less, unless a higher limit is provided by endorsement. In that case, whichever limit is greater will apply. This payment may be adjusted for salvage expenses or recoveries, if any. Spoilage Coverage We will pay for loss of perishable goods due to spoilage resulting from lack of power, light, heat, steam or refrigeration caused by "Equipment Breakdown" to types of property covered by this policy, that are: (1) located on or within 1,000 feet of the described premises; (2) owned or used by you, owned by the building owner at the described premises, or owned by a public utility; and (3) used to supply telephone, electricity, air conditioning, heating, gas, water or steam to the described premises. However, we will not pay for any loss, damage, cost or expense for which coverage is provided by the Businessowners Coverage Form and endorsements thereto. The most we will pay for loss or damage under this coverage is the limit shown in the Declaration for Business Personal Property or $250,000, whichever is less, unless a higher limit is provided by endorsement. This payment may be adjusted for salvage expenses or recoveries if any. SECTION I — PROPERTY, B. Exclusions, exclusion I.e. Utility Services, is amended by addition of the following with respect to insurance coverage provided by this endorsement: BP 47 (11-10) Page 2 of 5 The failure of power or other utility service supplied to the described premises, however caused, if the failure occurs away from the described premises. However, we will pay for loss resulting in a Business Income or Extra Expense loss due to an "Equipment Breakdown" to covered equipment that occurs on or within 1,000 feet of the described premises. If failure of power or other utility service results in an "Equipment Breakdown" to Covered Property, we will pay for the loss or damage caused by the "Equipment Breakdown". This exclusion does not apply to loss or damage to "computer(s)" and "electronic media and records". However, we will not pay for any loss, damage, cost or expense for which coverage is provided by the Businessowners Coverage Form and endorsements thereto. SECTION I — PROPERTY, B. Exclusions, is amended by deletion of the following Exclusions in their entirety: 2.a. Electrical Apparatus 2.d. Steam Apparatus 2.1. Other Types Of Loss, item (6) SECTION I — PROPERTY, B. Exclusions, is amended by the addition of the following Exclusion: Any accident, loss, damage, cost, claim or expense, whether preventative, remedial, or otherwise, directly or indirectly arising out of or relating to the recognition, interpretation, calculation, comparison, differentiation, sequencing or processing of data by any computer system including any hardware, programs or software. SECTION I — PROPERTY, E. Loss Conditions, 5. Loss Payment, is amended by addition of the following: If Covered Property requires repair or replacement due to an "Equipment Breakdown", we will pay your additional cost to repair or replace with equipment that is better for the environment, safer, or more efficient than the equipment being replaced. However, we will not pay more than one hundred twenty-five percent (125%) of what the cost might have been to repair or replace with like kind and quality. This condition does not apply to any property to which Actual Cash Value applies. SECTION I — PROPERTY, F. Property General Conditions, is amended by addition of the following: Suspension Whenever Covered Property is found to be in, or exposed to, a dangerous condition, any of our representatives may immediately suspend the insurance against loss to that Covered Property for the perils covered by this endorsement. Coverage can be suspended and possibly reinstated by delivering or mailing a written. notice of suspension/coverage reinstatement to: BP 47 (11-10) Page 3 of 5 (a) Your last known address; or (b) The address where the property is located. But if we suspend your insurance, you will get a pro rata refund of premium. But the suspension will be effective even if we have not yet made or offered a refund. SECTION I — PROPERTY, G. Optional Coverages, 1.c.(5) is deleted in its entirety. SECTION I — PROPERTY, G. Optional Coverages, 4. Equipment Breakdown Protection Coverage is deleted in its entirety and replaced by the provisions of this "Equipment Breakdown" endorsement. SECTION I — PROPERTY, H. Property Definitions, 12. "Specified Causes of Loss" also means "Equipment Breakdown". SECTION I — PROPERTY, H. Property Definitions, is amended by the addition of the following: "Green" means products, materials, methods and processes certified by a "Green Authority" that conserve natural resources, reduce energy or water consumption, avoid toxic or other polluting emissions or otherwise minimize environmental impact. "Green Authority" means an authority on "Green" buildings, products, materials, methods or processes certified and accepted by Leadership in Energy and Environmental Design (LEEDS), "Green" Building Initiative Green Globes@, Energy Star Rating System or any other recognized "Green" rating system. "Production machinery" means any machine that processes, forms, shapes, or transports raw materials, materials in process, waste materials or finished products. "Reasonable extra cost" shall mean the extra cost of temporary repair and of expediting the repair of such damaged equipment of the insured, including overtime and the extra cost of express or other rapid means of transportation. This will be a part of and not an addition to the limit shown on the Declaration Page. SECTION I — PROPERTY, H. Property Definitions, is amended by addition of the following: "Equipment Breakdown" as used herein means: a. Physical loss or damage both originating within: (1) Boilers, fired or unfired pressure vessels, vacuum vessels, and pressure piping, all normally subject to vacuum or internal pressure other than static pressure of contents, excluding: (a) waste disposal piping; and/or (b) any piping forming part of a fire protective system; and/or (c) furnaces; and (d) any water piping other than: (i) boiler feed water piping between the feed pump and the boiler; or BP 47 (11-10) Page 4 of 5 (ii) boiler condensate return piping; or (iii)water piping forming part of a refrigerating or air conditioning system used for cooling, humidifying or space heating purposes. (2) All mechanical, electrical, electronic or fiber optic equipment; and b. Caused by, resulting from, or consisting of: (1) Mechanical breakdown; or (2) Electrical or electronic breakdown meaning breakdown from artificially generated electrical current, including electrical arcing, that disturbs electrical devices, appliances or wires; or (3) Rupture, bursting, bulging, implosion, or steam explosion. However, "Equipment Breakdown" does not mean physical loss or damage caused by or resulting from any of the following; however if loss or damage not otherwise excluded results, then we will pay for such resulting damage: (1) Wear and tear; (2) Rust or other corrosion, decay, deterioration, hidden or latent defect, mold 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 birds, rodents or other animals; (6) The following causes of loss to personal property: (a) dampness or dryness of atmosphere; (b) marring or scratching. All other terms and conditions of this policy remain unchanged. This endorsement is a part of your policy and takes effect on the effective date of your policy unless another effective date is shown. BP 47 (11-10) Page 5 of 5 This endorsement modifies insurance provided under the following: BUSINESSOWNERS COVERAGE FORM EXCLUSION - ASBESTOS, LEAD CONTAMINATION, ABSOLUTE POLLUTION, MOLD, FUNGUS, BACTERIA, VIRUS AND ORGANIC PATHOGEN ABSOLUTE POLLUTION EXCLUSION — PROPERTY SECTION I - PROPERTY; B. Exclusions; 2.j., is deleted and replaced in its entirety with the following: j. Pollution Coverage under this policy does not apply: (1) to direct physical loss of or damage to Covered Property, (2) to your expense to remove debris of Covered Property, (3) to any actual loss of Business Income you sustain due to the necessary suspension of your "operations" during the "period of restoration", (4) to any extra expense you incur during the "period of restoration", (5) to damages for the devaluation of property or for the taking, use or acquisition or interference with the rights of others in property or air space. (6) to any loss, cost or expense, including but not limited to fines and penalties, arising out of any governmental direction or request, or any private party or citizen action, that an insured test for, monitor, clean up, remove, contain, treat, detoxify or neutralize "pollutants", or (7) to any litigation or administrative procedure in which an insured may be involved as a party; arising directly, indirectly, or in concurrence, or in any sequence out of actual, alleged or threatened existence, discharge, dispersal, release or escape of "pollutants", whether or not such actual, alleged or threatened existence, discharge, dispersal, release or escape is sudden, accidental or gradual in nature. This exclusion applies even if such "pollutant" has a function in, or is used by you in your business, operations, premises, site or location. "Volatile organic compound" means any compound which discharges organic gases as. it decomposes or evaporates, examples of which include but are not limited to formaldehyde, pesticides, adhesives, construction materials made with organic chemicals, solvents, paint varnish and cleaning products. "Waste" means any property intended to be disposed, recycled, reused or reclaimed by the owner or user thereof. BP 48 (05-16) Pagel of 3 ASBESTOS MATERIAL EXCLUSION - PROPERTY SECTION I — PROPERTY; B. Exclusions; 2., is amended by the addition of the following: Coverage under this policy does not insure loss or expense resulting from: (1) demolition or increased cost of reconstruction, repair, debris removal or loss of use necessitated by the enforcement of any law or ordinance regulating asbestos material. (2) any government direction or request declaring that asbestos material present in or part of or utilized on any undamaged portion of the insured's property can no longer be used for the purpose for which it was intended or installed and must be removed or modified. EXCLUSION - LEAD ,CONTAMINATION - PROPERTY SECTION I — PROPERTY; B. Exclusions; 2., is amended by the addition of the following: Coverage under this policy does not apply to, and we will not defend or pay any loss arising, directly out of or indirectly resulting from, based upon or in any way involving the existence of lead in any form. MOLD, FUNGUS, BACTERIA, VIRUS OR ORGANIC PATHOGEN EXCLUSION — PROPERTY SECTION I — PROPERTY; B. Exclusions; 2., is amended by the addition of the following: Coverage under this policy does not apply: (1) to direct physical loss of or damage to Covered Property, (2) to your expense to remove debris of Covered Property, (3) to any actual loss of Business Income you sustain due to the necessary suspension of your "operations" during the "period of restoration", (4) to any extra expense you incur during the "period of restoration", (5) to damages for the devaluation of property or for the taking, use or acquisition or interference with the rights of others in property or air space. (6) to any loss, cost or expense, including but not limited to fines and penalties, arising out of any governmental direction or request, or any private party or citizen action, that an insured test for, monitor, clean up, remove, contain, treat, detoxify or neutralize "organic pathogens", or (7) to any litigation or administrative procedure in which an insured may be involved as a party; arising directly, indirectly, or in concurrence, or in any sequence out of actual, alleged or threatened existence, discharge, dispersal, release or escape of "organic pathogens", whether or not such actual, alleged or threatened existence, discharge, dispersal, release or escape is sudden, accidental or gradual in nature. "Organic pathogen" means any organic irritant or contaminant, including but not limited to mold, fungus, bacteria or virus, including but not limited to their byproduct such as mycotoxin, mildew, or biogenic aerosol. BP 48 (05-16) Page 2 of 3 SECTION I — PROPERTY, H. Property Definitions, paragraph 10., is deleted in its entirety and replaced with the following: 10. "Pollutants" mean[s] any solid, liquid, gaseous, bacterial, fungal, electromagnetic, thermal or other substance that can be toxic or hazardous, cause irritation to animals or persons and/or cause contamination to property and the environment including smoke, vapor, soot, fumes, acids, alkalis, chemicals, toxic materials, "volatile organic compound" and gases therefrom, radon, combustion byproducts and waste. Specific examples identified as pollutants include, but are not limited to, diesel, kerosene, and other fuel oils ... carbon monoxide, and other exhaust gases ... mineral spirits, and other solvents ... tetrachloroethylene, perchloroethylene (PERC), trichloroethylene (TCE), methylene chloroform, and other dry cleaning chemicals ... chlorofluorocarbons, chlorinated hydrocarbons, adhesives, pesticides, insecticides ... and all substances specifically listed, identified, or described by one or more of the following references: Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) Priority List Hazardous Substances (1997 and all subsequent editions), Agency for Toxic Substances And Disease Registry ToxFAQsTM, and/or U.S. Environmental Protection Agency EMCI Chemical References Complete Index. All other terms and conditions of this policy remain unchanged. This endorsement is a part of your policy and takes effect on the effective date of your policy unless another effective date is shown. BP 48 (05-16) Page 3 of 3 UNITED STATES LIABILITY INSURANCE GROUP WAYNE, PENNSYLVANIA This endorsement modifies insurance provided under the following: BUSINESSOWNERS COVERAGE FORM Absolute Exclusion For Pollution, Organic Pathogen, Silica, Asbestos And Lead SECTION H — LIABILITY; B. Exclusions; 1 Applicable to Business Liability; f. Pollution is deleted in its entirety and replaced with the following: f. Pollution, Organic Pathogen, Silica, Asbestos and Lead (1) `Bodily injury", "property damage", or "personal and advertising injury"; or (2) Diminishing or lessoning in value of property or for damages from the taking, use or acquisition or interference with the rights of others in property or air space; or (3) Loss, cost or expense, including but not limited to payment for investigation or defense, fines and penalties, arising out of any governmental or any private party action, that an insured or any other party test for, monitor, clean up, remove, contain, mitigate, treat, detoxify or neutralize or in any way respond to or assess the actual or alleged effects of "pollutants", "organic pathogens", "silica", asbestos, or lead arising directly, indirectly, or in concurrence or in any sequence out of actual, alleged or threatened presence of or exposure to, ingestion, inhalation, absorption, contact with discharge, dispersal, seepage, release or escape of "pollutants", "organic pathogens", "silica", asbestos, or lead, whether or not any of the foregoing are (1) sudden, accidental or gradual in nature; (2) intentional; or (3) expected or intended from the standpoint of the insured. This exclusion applies even if the "pollutant", "organic pathogen", "silica", asbestos or lead has a function in, or is used by you in your business, operations, premises, site or location. This exclusion does not apply to "bodily injury" or "property damage" arising from the consumption of food products intended for human consumption. "Pollutants" mean[s] any solid, liquid, gaseous, bacterial, fungal, electromagnetic, thermal or other substance that can be toxic or hazardous, cause irritation to animals or persons and/or cause contamination to property and the environment including smoke, vapor, soot, fumes, acids, alkalis, chemicals, toxic materials, "volatile organic compound" and gases therefrom, radon, combustion byproducts and waste. Specific examples identified as pollutants include, but are not limited to, diesel, kerosene, and other fuel oils ... carbon monoxide, and other exhaust gases ... mineral spirits, and other BP 49 (01-13) Page 1 of 2 solvents ... tetrachloroethylene, perchloroethylene (PERC), trichloroethylene (TCE), methylene chloroform, and other dry cleaning chemicals ... chlorofluorocarbons, chlorinated hydrocarbons, adhesives, pesticides, insecticides ... and all substances specifically listed, identified, or described by one or more of the following references: Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) Priority List Hazardous Substances (1997 and all subsequent editions), Agency for Toxic Substances And Disease Registry ToxFAQsrm, and/or U.S. Environmental Protection Agency EMCI Chemical References Complete Index. "Silica" means silica in any form and any of its derivatives, including but not limited to silica dust, silicon dioxide, crystalline silica, quartz, or non -crystalline (amorphous) silica. "Volatile organic compound" means any compound which discharges organic gases as it decomposes or evaporates, examples of which include but are not limited to formaldehyde, pesticides, adhesives, construction materials made with organic chemicals, solvents, paint, varnish and cleaning products. "Waste" means any property intended to be disposed, recycled, reused or reclaimed by the owner or user thereof. "Organic pathogen" means any organic irritant or contaminant, including but not limited to mold, fungus, bacteria or virus, including but not limited to their byproduct such as mycotoxin, mildew, or biogenic aerosol. All other terms and conditions of this policy remain unchanged. This endorsement is a part of your policy and takes effect on the effective date of your policy unless another effective date is shown. BP 49 (01-13) Page 2 of This endorsement modifies insurance provided under the following: BUSINESSOWNERS COVERAGE FORM BUILDING TENANT OBLIGATIONS Section I, Paragraph A. Coverage, b. Your Business Personal Property is amended to add the following: (6) If you are a tenant and you have a lease that makes you contractually responsible to insure any part of a building you occupy at the described premises, All other terms and conditions of this policy remain unchanged. This endorsement is a part of your policy and takes effect on the effective date of your policy unless another effective date is shown. BP 504 (04-17) Page 1 of 1 This endorsement changes insurance provided under the following: BUSINESSOWNERS COVERAGE FORM EXCLUSION - UNMANNED AIRCRAFT Section II Liability is amended as follows: A. Exclusion B.I.g. is replaced with: This insurance does not apply to: g. Aircraft, Auto Or Watercraft (1) Unmanned Aircraft "Bodily injury" or "property damage" arising out of the ownership; maintenance; or use or entrustment to others of any aircraft that is an "unmanned aircraft". Use includes operation and "loading or unloading". This Paragraph g.(1) applies even if the claims against any insured allege negligence or other wrongdoing in the following: Supervision; hiring; employment; training; or monitoring of others by that insured, if the "occurrence" which caused the "bodily injury" or "property damage" involved the ownership, maintenance, use or entrustment to others of any aircraft that is an "unmanned aircraft". (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". This Paragraph g.(2) applies even if the claims against any insured allege negligence or other wrongdoing in any of the following: supervision; hiring; employment; training; or monitoring of others by that insured, if the "occurrence" which caused the "bodily injury" or "property damage" involved the ownership, maintenance, use or entrustment to others of any aircraft (other than "unmanned aircraft"), "auto" or watercraft that is owned or operated by or rented or loaned to any insured. This Paragraph g.(2) does not apply to: (a) A watercraft while ashore on premises you own or rent; (b) A watercraft you do not own that is: (i) Less than 51 feet long; and (ii) Not being used to carry persons or property for a charge; (c) Parking an "auto" on, or on the ways next to, premises you own or rent. This is true provided the "auto" is not owned by or rented or loaned to you or the insured; (d) Liability assumed under any "insured contract" for the ownership, maintenance or use of aircraft or watercraft; or (e) 'Bodily injury" or "property damage" arising out of: (i) The operation of machinery or equipment that is attached to; or part of, a land vehicle that would qualify under the definition of "mobile equipment" if it BP 507 (04-17) Page 1 of 2 were not subject to a. compulsory or financial responsibility law or other motor vehicle insurance law where it is licensed or principally garaged; or (ii) The operation of any of the following machinery or equipment: i. Cherry pickers and similar devices mounted on automobile or truck chassis and used to raise or lower workers; and ii. Air compressors, pumps and generators, including spraying, welding, building cleaning, geophysical exploration, lighting and well servicing equipment. B. The following is added to Exclusion B.l.p. Personal And Advertising Injury: This insurance does not apply to: p. Personal And Advertising Injury "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 or unloading". This exclusion applies even if the claims against any insured allege negligence or other wrongdoing in the supervision, hiring, employment, training or monitoring of others by that insured, if the 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 exclusion does not apply to: (1) The use of another's advertising idea in your "advertisement"; or (2) Infringing upon another's copyright, trade dress or slogan in your "advertisement". C. This definition is added to Paragraph F. Liability And Medical Expenses Definitions: "Unmanned aircraft" means an aircraft that is not: 1. Designed; 2. Manufactured; or 3. Modified after manufacture; to be controlled directly by a person from within or on the aircraft. All other terms remain the same. This endorsement is a part of your policy. It takes effect on the effective date of your policy unless there is another effective date that is shown. BP 507 (04-17) Page 2 of 2 UNITED STATES LIABILITY INSURANCE GROUP WAYNE, PENNSYLVANIA This endorsement modifies insurance provided under the following: BUSINESSOWNERS COVERAGE FORM AMENDMENT OF PREMIUM AUDIT CONDITIONS SECTION III — COMMON POLICY CONDITIONS, J. Premium Audit is hereby deleted in its entirety and replaced with the following: J. Premium Audit. 1. We will compute all premiums for this Coverage Form in accordance with our underwriting guides, rules and rates. 2. We may examine and audit your books and records to compute the total earned premium at any time during the policy period or after the expiration date of a policy issued by the Company. At the close of each audit we may compute the earned premium for the policy period. If the total earned premium for the policy period is less than the advance premium, we will refund the difference to the first Named Insured. If the total earned premium for the policy period as determined by an audit is greater than the advance premium, then additional Audit Premium is due and payable as provided herein. The Premium for this policy may be amended during the current policy term based on the results of an audit of an expired/prior term. This may result in additional premium due to the Company for coverage under this policy. 3. On the first policy issued to the Named Insured, the Company may examine and audit your books and records for policy period(s) prior to the effective date of our policy. 4. The first Named Insured must keep current and accurate books and records and provide copies of such information needed for premium computation as our auditing representatives or we may request from time to time. 5. Failure of the first Named Insured to cooperate with an audit at the expiration date may result in an Estimated Audit Premium being applied to this policy and will result in cancellation of any renewal policy issued by the Company. Failure to cooperate with a current term policy audit may result in cancellation of this policy and retention of any unearned premium. If, subsequent thereto, the first Named Insured cooperates with the audit as requested, earned premium for the policy period will be calculated in accordance with the terms of this Endorsement. 6. Audit Premium or Estimated Audit Premium is due and payable on notice to the first Named Insured. Failure to pay premium, including any Audit Premium and Estimated Audit Premium, may result in the cancellation of this policy and/or any renewal policy issued by the Company. All other terms and conditions of this policy remain unchanged. This endorsement is a part of your policy and takes effect on the effective date of your policy unless another effective date is shown. BP 77B (03-11) Page 'I of 1 UNITED STATES LIABILITY INSURANCE GROUP WAYNE, PENNSYLVANIA This endorsement modifies insurance provided under the following: BUSINESSOWNERS COVERAGE FORM EXCLUSION - VIOLATION OF STATUTES THAT GOVERN E-MAILS, FAXES, PHONE CALLS OR OTHER METHODS OF SENDING MATERIAL OR INFORMATION The following exclusion q. is added to: SECTION II — LIABILITY B. Exclusions 1. Applicable To Business Liability Coverage This insurance does not apply to: q. Distribution Of Material In Violation Of Statutes "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) Any statute, ordinance or regulation, other than the TCPA or CAN - SPAM Act of 2003, that prohibits or limits the sending, transmitting, communicating or distribution of material or information. All other terms and conditions of this Policy remain unchanged. This endorsement is a part of your Policy and takes effect on the effective date of your Policy unless another effective date is shown. BP 78 (5/05) Page 1 of 1 UNITED STATES LIABILITY INSURANCE GROUP WAYNE, PENNSYLVANIA This Endorsement modifies insurance provided under the following: BUSINESSOWNERS COVERAGE FORM EXPANDED DEFINITION OF BODILY INJURY The Definition of "bodily injury" is removed in its entirety and replaced with the following: ' "Bodily injury" means: a. bodily injury, b. sickness, C. disease; or d. mental anguish or emotional distress arising out of a., b., or c., above, sustained by a person, including death resulting from any of these at any time. All other terms and conditions of this policy remain unchanged. This endorsement is a part of your policy and takes effect on the effective date of your policy unless another effective date is shown. BP 88 (04/06) Page 1 of 1 UNITED STATES LIABILITY INSURANCE GROUP WAYNE, PENNSYLVANIA This endorsement modifies insurance provided under the following: BUSINESSOWNERS COVERAGE FORM AMENDED DEFINITION Throughout this policy, with the exception of SECTION II — LIABILITY, C. Who Is An Insured, when the word "insured(s)" is used it shall mean "any insured(s)". All other terms and conditions of this policy remain unchanged. This endorsement is a part of your policy and takes effect on the effective date of your policy unless another effective date is shown. BP 90 (11-10) lof 1 40T' q 7 T Es L I A B 1 1 T- 1��, -TAM r, J N,$Vt Rj,N� ASTOCK-COMPANY A BERKSHIRE' HATHAWAY COMPANY 119-0 Devon,Park Drive Wayne, . PAA 4087-2'19 1 888:523--5545 usLi-.*Com 4Jack.et,(07-19) N RiAWNG gigs: P-``OjLhC,Y This pblicyjacket together with thbip . ojjp�., dbc[4rations, coverage and endorsements;-.ik- Y,Oete CWT this.popby. The,enclos.ed, declarations designates the-issui' company. Page :1.'of'2 Read your policy carefully! In Witness Whereof, the company has caused this Policy to be executed and attested. Where required by law, this Policy shall not be valid unless countersigned by a duly authorized representative of the company. Secretary President 4--O� Jacket (07-19) Page 2 of 2 This endorsement modifies the following: BP 101 EXCLUSION OF CERTIFIED ACTS OF TERRORISM (COVERAGE FOR CERTAIN FIRE LOSSES); BP 102 EXCLUSION OF WAR, MILITARY ACTION AND TERRORISM; BP 103 EXCLUSION OF WAR, MILITARY ACTION AND TERRORISM (COVERAGE FOR CERTAIN FIRE LOSSES); BP 104 EXCLUSION OF CERTIFIED ACTS OF TERRORISM; CG2173 EXCLUSION OF CERTIFIED ACTS OF TERRORISM; L 526 ABSOLUTE WAR OR TERRORISM EXCLUSION; P 246 EXCLUSION OF WAR, MILITARY ACTION AND TERRORISM; P 247 EXCLUSION OF CERTIFIED ACTS OF TERRORISM; P 248 EXCLUSION OF CERTIFIED ACTS OF TERRORISM (COVERAGE FOR CERTAIN FIRE LOSSES); P 249 EXCLUSION OF WAR, MILITARY ACTION AND TERRORISM (COVERAGE FOR CERTAIN FIRE LOSSES) EXTENSION OF TERRORISM COVERAGE For the additional premium specified in this Policy, it is hereby agreed that the Exclusion referenced above and attached to this Policy is amended as follows: The referenced Exclusion shall not apply to loss or damage caused directly or indirectly by "certified acts of terrorism" under the provisions of the federal Terrorism Risk Insurance Program Reauthorization Act of 2019 ("The Act") and any amendments thereto. The referenced Exclusion also does not apply when "certified acts of terrorism" as defined in The Act result in insured losses of $5 million or less in the aggregate. This Extension of Terrorism Coverage extends coverage under this Policy only to "insured losses" (as defined in The Act) and is subject to the application of any clause in The Act which results in a cap on liability for payments for terrorism losses. This Extension does not provide coverage for damages arising, directly or indirectly, out of "certified acts of terrorism" as defined in The Act that are awarded as punitive damages. The terms and conditions of the referenced Exclusion, or the inapplicability or omission of a terrorism exclusion, do not serve to create coverage for any loss which would otherwise be excluded under this policy, including but not limited to losses excluded by one or more of the above referenced exclusions. Coverage provided by this Policy for losses caused by "certified acts of terrorism" is partially reimbursed by the United States under a formula established by federal law. Under this formula, the United States pays 80% for covered terrorism losses exceeding the statutorily established deductible paid by the insurance company providing the coverage. Under The Act, the maximum amount that insurers and the federal government are required to pay in respect of terrorism loss(es) in any given calendar year is $100 billion. The premium charged for this coverage does not include any charges for the portion of loss covered by the federal government under The Act. L 541 (12-20) Page 1 of 2 The federal government may participate in paying for some of the losses from a "certified act of terrorism". However, if aggregate insured losses attributable to terrorist acts certified under The Act exceed $100 billion in a calendar year, the federal government shall not make any payment for any portion of the amount of such losses that exceeds $100 billion. Further, this coverage is subject to a limit on our liability pursuant to the federal law, that is, if aggregate insured losses attributable to terrorist acts certified under The Act exceed $100 billion in a calendar year and we have met our insurer deductible under The Act, we shall not be liable for the payment of any portion of the amount of such losses that exceed $100 billion. In such case insured losses up to that amount are subject to pro rata allocation in accordance with procedures established by the Secretary of the Treasury. All other terms and conditions of this policy remain unchanged. This endorsement is a part of your policy and takes effect on the effective date of your policy unless another effective date is shown. L 541 (12-20) Page 2 of 2