Resolution No. 6996
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RESOLUTION NO. 6996
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF VERNON APPROVING AND AUTHORIZING THE
EXECUTION OF AN AGREEMENT FOR CONSULTING
SERVICES BY AND BETWEEN THE CITY OF VERNON AND
ERIKSEN-RATTAN ASSOCIATES, INC. FOR PLAN
REVIEW OF FIRE EXTINGUISHING SYSTEMS
WHEREAS, the City of Vernon desires to retain the
of a consulting engineer to provide consulting services
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for plan review of fire extinguishing systems to the City of
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Vernon; and
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WHEREAS, Mary Eriksen-Rattan, President of Eriksen-
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Rattan Associates, Inc., has specialized knowledge and experience
with building codes and is qualified to provide plan review of
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fire extinguishing systems, including hydraulic calculations; and
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WHEREAS, the Director of community Services and Water
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has recommended that the City of Vernon enter into an agreement
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with Eriksen-Rattan Associates, Inc. to provide for said building
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related services.
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NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF
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THE CITY OF VERNON AS FOLLOWS:
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SECTION 1: The City Council of the City of Vernon
22 hereby finds and determines that the recitals contained
23 hereinabove are true and correct.
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SECTION 2: The City Council of the City of Vernon
25 hereby approves the Agreement for Consulting Services, a copy of
26 which has been presented to the City Council concurrently with
27 this resolution, and the city Council hereby orders said Agreement
28 to be received and filed by the City Clerk.
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SECTION 3: The City Council of the City of Vernon
2 hereby authorizes the Mayor and the City Clerk to execute said
3 Agreement for, and on behalf of, the City of Vernon.
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SECTION 4: The City Clerk of the City of Vernon shall
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certify to the passage of this resolution, and thereupon and
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thereafter the same shall be in full force and effect.
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APPROVED AND ADOPTED this 5th day of August, 1997.
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. EOHIS C. MALB ,Mayor . .
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ATT~ /~~
BRUCE V. MALKENHORST, City Clerk
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STATE OF CALIFORNIA )
)ss
COUNTY OF LOS ANGELES )
I, BRUCE V. MALKENHORST, City Clerk of the City of
Vernon, do hereby certify that the foregoing Resolution, being
Resolution No. 6996, was duly adopted by the city Council of the
City of Vernon at a regular meeting of the City Council duly held
on Tuesday, August 5, 1997, and thereafter was duly signed by the
Mayor of the City of Vernon.
BRUCE V. MALKENHORST, City Clerk
( SEAL)
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EXECUTION COPY
1 AGREEMENT FOR CONSULTING SERVICES
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THIS AGREEMENT is made, entered into and executed in
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duplicate originals, either copy of which may be considered and
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used as the original hereof for all purposes, as of this _
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day of 1997,
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7 BY AND BETWEEN THE .CITY OF VERNON, hereinafter.
referred to as the "City,"
8 4305 Santa Fe Avenue
Vernon, CA 90058
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AND ERIKSEN-RATTAN ASSOCIATES,
10 INC., hereinafter referred to
as "Consultant,"
11 8989 Rio San Diego Dr., #200
San Diego, CA 92108-1648
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13 RECITALS
14 WHEREAS, the Consultant has prepared and presented to the
15 City a proposal to provide consulting services for plan review of
16 fire extinguishing systems, including hydraulic calculations; and
17 WHEREAS, the City has previously contracted with Eriksen-
18 Rattan Associates, Inc. to provide consulting services for the City;
19 and
20 WHEREAS, the Consultant in such capacity has demonstrated
21 specialized knowledge and experience with fire codes and plan review
22 of fire extinguishing systems.
23 NOW, THEREFORE, IN CONSIDERATION OF THESE MUTUAL COVENANTS,
24 THE PARTIES HERETO AGREE AS FOLLOWS:
25 SECTION 1: CONSULTANT'S SERVICES.
26 The Consultant shall, upon .request by the City, perform
27 plan- review of fire extinguishing systems, including hydraulic
28 calculations.
1 SECTION 2:' TIME SCHEDULE.
2 The Consultant agrees to perform all services, after
3 request by the City, in a timely and efficient manner.
4 SECTION 3: COMPENSATION AND REIMBURSEMENT.
5 The City agrees to pay the Consultant for its services
6 hereunder and the Consultant agrees to work for eight-five percent
7 (85$) of the plan check fee charged by the City. The fee includes-
8 the cost of shipping plans from Consultant to City.
9 The Consultant shall bill monthly for services rendered
10 during the period. The City shall reimburse the Consultant for
11 reproduction costs of all copies of documents over and above the
12 original documents required to provide the services hereunder.
13 SECTION 4: INDEPENDENT CONTRACTOR.
14' The Consultant shall be an independent contractor, and
15 shall have no power to incur or to cause to be incurred any debt or
16 obligation for or on behalf of the City. Neither the City nor any
17 of its officers, agents or employees shall have any control over the
18 conduct of the Consultant, or any of the Consultant's employees,
19 except as herein set forth, and the Consultant expressly warrants
20 not to represent, at any time or in any manner, that it, or any of
21 its agents, servants or employees, are agents, servants or employees
22 of the City. The Consultant's obligations to the City are solely
23 prescribed by .this Agreement.
24 SECTION 5: CONSULTANT REPRESENTATIVES.
25 Mary Eriksen-Rattan shall be principally responsible for
26 the Consultant's obligations under this agreement. Designation of
27 another responsible principal or project manager by the Consultant
28 -shall not be made without the prior written consent of the City.
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1 SECTION 6: CITY LIAISON.
2 The Consultant shall perform under the general supervision
3 of the City Engineer or its designee, and all communications,
4 instructions and directions on the part of the City shall be
5 communicated exclusively through the City Engineer om its designee.
6 SECTION 7: PERSONNEL.
7 The Consultant represents that it has, or shall secure at
8 its own expense, all personnel required to perform the Consultant's
9 services under this Agreement, and at all times shall be responsible
10 for the services of such personnel. The Consultant may not employ
11 any sub-consultants without the prior written approval of the City.
12 SECTION 8: DATA AND SERVICES BY CITY.
13 All information, data, records, reports and maps in the
14 .possession of the City necessary for the carrying out of the work to
15 be performed under this Agreement shall be available to the
16 Consultant without charge. The City has responsibility-for the
17 .maintenance of all files .and the Consultant shall have access to the
18 said files during normal City business hours.
19 SECTION 9: OWNERSHIP OF DOCUMENTS.
20 The City and the Consultant agree that all documents, data,
21 studies, surveys, drawings, maps, models, photographs, and reports
22 prepared as a result of this Agreement shall be the sole property of
23 the City. All such information prepared or assembled by the
24 Consultant in connection with the performance of its services
25 pursuant to this Agreement is confidential until released by the
26 City to the public and the Consultant agrees that such documents
27 shall not be available to any individual or organization without the
28 written consent of the City prior to such release. All such
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1 reports, information, data and exhibits shall be delivered to the
2 City upon demand. No reports, maps, or other documents produced in
3 whole or in part under this Agreement shall be the subject of an
4 application for copyright by or on behalf of the Consultant.
5 SECTION 10: INTERESTS OF CONSULTANT.
6 The Consultant affirms that it presently has no interest
7 and shall not have any interest, direct or indirect, in any real
8 property in the City or any other interest which would conflict in
9 any manner with performance of the services contemplated by this
10 Agreement. No person having. such interest shall be employed by or be
11 associated with the Consultant.
12 SECTION 11: INDEMNITY AND INSURANCE.
13 The Consultant shall hold harmless and indemnify the City
14 against any and all obligations or liabilities whatsoever arising
15 out of the Consultant's performance of this Agreement.. The
16 Consultant agrees to provide insurance in the amounts and forms
17 specified in Exhibit A, which is attached hereto and made a part
18 hereof by reference..
19 The Consultant shall not commence performance of its
20 services under this Agreement until the above insurance has been
21 obtained and proof of insurance has been filed with and approved by
22 the City.
23 SECTION 12: GENERAL TERMS AND CONDITIONS.
24 1. Termination.
25 Either party may terminate this Agreement at any time
26 without cause by giving at least ten (10) days notice in writing to
27 the other. If the Agreement is terminated as provided herein, the
28 Consultant will be paid for the services provided and expenses
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1 incurred up to the date of termination. In such event, all finished
2 or unfinished documents, data, studies, surveys, drawings, maps,
3 models, photographs, and reports prepared by the Consultant under
4 this Agreement shall, at the option of the City, be delivered to the
5 City. Notwithstanding the foregoing, the Consultant shall not be
6 relieved of liability to the City for damage sustained by the City
7 by virtue of any breach of this Agreement by the Consultant.
8 2. Changes.
9 The City may, from time to time, request in writing changes
10 in the scope of the services of the Consultant to be performed
11 hereunder. Any other modifications to this Agreement including, any
12 increase or decrease in the amount of the Consultant compensation,
13 which are mutually agreed upon by and between the City and the
14 Consultant, shall only be made by written amendments to this
15 Agreement approved by the City Council.
16 3. Assignability.
17 The Consultant shall not assign any interest in this
18 Agreement, and shall not transfer any interest in the same, without
19 the prior written consent of the City thereof. Notwithstanding the
20 foregoing, .claims for money by the Consultant against the. City 'under
21 this Agreement may be assigned to a bank, trust company, or other
22 financial institution without such approval. Written notice of any
23 such assignment or transfer shall be furnished promptly to the City.
24 4. Compliance with Applicable Laws.
25 The Consultant shall comply with all applicable laws,
26 ordinances, and codes of the Federal, State and local government.
27 5. Eaual Employment Opportunity.
28 During the performance of this Agreement, the Consultant
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1 agrees as follows:
2 a) The Consultant will not discriminate against
3 any employee or applicant because~of race, creed, sex, color or
4 national origin. The Consultant will take affirmative action to
5 ensure that applicants are employed, and that employees are treated
6 during employment, without regards to their race, creed, sex, color
~ or .national origin. Such action shall include, but not be limited.
8 to, the following: employment, upgrading, demotion, or transfer;
9 recruitment or recruitment advertising;. layoff or termination; rates
10 of pay or other form of compensation; and selection for training,
11 including apprenticeship. The Consultant agrees to post in
12 conspicuous places, available to employees and applicants for
13 employment, notices to be provided by the City. of the provisions of
14 this nondiscrimination clause.
15 b) The Consultant will, in all solicitations or
16 advertisements for employees placed by or on behalf of the
17 Consultant, state that all qualified applicants will receive
18 consideration for employment without regard to race, creed, color,
19 sex or national origin.
20 c) The Consultant will cause the foregoing
21 provisions to be inserted in all subcontracts for any work covered
22 by this contract so that such provisions will be binding upon each
23 subcontractor, provided that the foregoing provisions shallnot
24 apply to contracts for standard commercial supplies or raw.
25 materials.
26 d) The Consultant shall comply with aTl applicable
27 equal employment opportunity laws, regulations and orders. The
28 Consultant shall permit access to its books, records, and accounts
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1 by the City and any other applicable public agency for purposes of
2 investigation to ascertain compliance with such laws, regulations,
3 and orders.
4 SECTION 13: PERIOD OF CONTRACT.
5 The period of-this Agreement shall be for one (1) year, and
6 shall Pcontinue on a month to month basis thereafter, unless
7 terminated earlier as provided by this Agreement.
8 SECTION 14: ENFORCEMENT OF AGREEMENT.
9 .Should either party hereto bring suit to enforce the terms
10 of this Agreement, any judgment awarded shall include court costs
11 and reasonable attorney's fees to the successful party.
12 SECTION 15: ENTIRE AGREEMENT.
13 This Agreement constitutes the whole agreement between the
14 -parties. hereto with respect to the subject matter hereof, and
15 neither party nor any of its agents or employees has made any
16 representation, except as specifically provided. Neither party,. in
17 executing or performing this Agreement is relying upon any statement
18 of information to whomsoever made or given, directly or indirectly,
19 verbally or in writing, by any individual or corporation, except as
20 specifically provided herein.
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1 IN WITNESS WHEREOF, the -City and the Consultant -have
2 executed this Agreement as of the date first hereinabove set forth.
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4 THE CITY OF VERNON
5 BY : ~ ~ f .f
6 ~ EONIS C. MALBU G, Mayo
ATTEST:
8 BRUCE V. MALKENHORST, City Clerk
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APPROVED AS TO FORM:
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11 DAVID B. BREARLEY, Cit Attorney
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13 ERIKSEN-RATTAN ASSOCIATES, INC.
14 BY : ~ ~2~sas - ~
Mary Er1] en-Rattan, Presl
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EXHIBIT A
INSURANCE SCHEDULE (CONTRACTOR)
The Contractor shall provide proof of insurance, including a standard
certificate of insurance, in at least the following amounts and
coverage (.combined single limit permitted):
I• Coverage and Limits
Bodily Injury Property Damage
Hazards Each Person Each•Accident Each Accident
Automobile Liability
Owned Automobiles $ 500,000 $1,000,000 $ 500,000
Hired Automobiles $ 500,000 $1,000,000 $ 500,000
Non-Owned Automobiles S 500 000 S1 000 000 S 500 000
Workers'_Compensation S Statutory
Emplovers' Liability S1 000 000 per employer
II. General and
Professional Liability
Contract Liability S1 000 000 $2 000 000 S1 000 000
Professional Liability $1 000 000 $1 000 000 S1 000 000
a. The. general liability policy shall contain the following special
endorsements which shall be noted on or attached to the standard
certificate of insurance:
1. An endorsement naming the .City of Vernon, its officers, and
employees as insureds under the policy.
2. An endorsement providing the City of Vernon thirty (30) days
notice of .cancellation or material reduction of coverage.
3. An endorsement providing coverage for all operations under
this Agreement.
4. Such other endorsement as may be `required by :addendum hereto.
b. In addition to the standard certificate of insurance, proof of
general and professional liability coverage shall be furnished in the
form checked below. Certification of the following proofs by the
:insurance aaent or broker will not be accepted:
X For each policy, a notarized letter from the underwriter or
carrier certifying that the coverage and statements in the
standard certificate of insurance {attached thereto) are true
and. correct and that the signator is an officer authorized to
so certify.
A copy of each policy certified by an officer of the
underwriter or carrier and notarized.
EXHIBIT A
A-1
CITY COUNCIL DAVID B. BREARLEY
City Attorney
LEONIS C. MALBURG FAX: (818) 330-5818
Mayor
KEVIN WILSON
THOMAS A. YBARRA Director of Community Services & Water
Mayor Pro-Tem FAX: (213) 588-2761
Wm. "BILL" DAVIS KENNETH J. DeDARIO
Councilman
Director of Light & Power
H. "LARRY" GONZALES FAX: (213) 583-1983
Councilman
~ ~ DAVE TELFORD
W. MICHAEL McCORMICK Fire Chief
Councilman FAX: (213) 581-1385
BRUCE V. MALKENHORST CITY TALL LOUIS R09ENKRANTz
City Administrator/City Clerk 4305 SANTA FE AVENUE, VERNON, CALIFORNIA 90058 .Police Chief
FAX: (213)581-7924 TELEPHONE (213) 583-8811 FAX: (213) 581-1178
August 18, 1997
Eriksen-Rattan Associates, Inc.
8989 Rio San Diego Dr. #200
San Diego, CA 92108-1648
Gentlemen:
Re: Agreement for Consulting Services
Gentlemen:
Enclosed herewith is your fully executed copy of the Agreement
for Consulting Services which was approved by the City of Vernon
City Council on August 5, 1997.
If you have any questions, do not hesitate to call Mr. Kevin-
Wilson, Director of Community Services & Water.
Very truly yours,
~loria J. o 0
Chief Depu y City Clerk
GJO/mm
enclosure
cc: Kevin Wilson
Director of Community Services & Water
~.c~reement ~'1e
CITY COUNCIL DAVID B. BREARLEY
City Attorney
LEONIS C. MALBURG FAX: (818) 330-5818
Mayor KEVIN WILSON
THOMAS A. YBARRA Director of Community Services & Water
Mayor Pro-Tem FAX: (213) 588-2761
Wm. "BILL" DAVIS KENNETH J. DeDARI0
Councilman
Director of Light & Power
H. "LARRY" GONZALES FAX: (213) 583-1983
Councilman DAVE TELFORD
W. MICHAEL McCORMICK Fire Chief
Councilman FAX: (213) 581-1385
BRUCE V. MALKENHORST CITY HALL LOUIS ROSENKRANTZ
City Administrator/City Clerk 4305 SANTA FE AVENUE, VERNON, CALIFORNIA 90058 Police Chief
FAX: (213j
581-7924 TELEPHONE (213) 583-8811 FAx: (213) SSi-1178
August 18, 1997
Eriksen-Rattan Associates, Inc..
8989 Rio San Diego Dr. #200.
San. Diego, CA 92108-1648
Gentlemen:
Re: Agreement for Consulting Services
Gentlemen:
Enclosed herewith is your fully executed copy of the Agreement
for Consulting Services which was approved by the City of Vernon
City Council on August 5, 1997.
If you have any questions, do not hesitate to call Mr. Kevin
Wilson, Director of Community Services & Water.
Very truly yours,
~loria J. o 0
Chief Depu y City Clerk
GJO/mm
enclosure
cc: Kevin Wilson
Director of Community Services & Water
Agreement File
Information to be entered when assigning new
agreement# to system.
CATEGORY (circle one only) : L & P, GAS, GENERAL, LICENSE
AGREEMENTS OR REDEVELOPMENT AGENCY
# 1. Approval date: ~ ~ # 1 a. Agreement
#2. Title of Agreement: .
r ~
~ ~r
#3. Effective Date: (if different from approval date)
#4. Expiration Date: (if applicable)
#5. Expiration Date. NONE
:AgrmntData
1 AGREEMENT FOR CONSULTING SERVICES
2 THIS AGREEMENT is made, entered into and executed in
3 of which may be considered and
duplicate originals, either copy
4 ur oses, as of this
used as the original hereof for all p p
5 day of 1997,
6
' ~E CgTy OF V3~RNON, hereinafter
BY AND BETWEEN referred to as the "City,"
4305 Santa Fe Avenue
8 Vernon, CA 90058
9 AND ERIKSEN-RATTAN ASSOCIATES,
i ~ INC. , hereinafter referred to
1 10 as "Consultant,"
i 8989 Rio .San Diego Dr., #200
11 San Diego, CA 92108-1648
12
RECITALS
13
14 WHEREAS, the Consultant has prepared and presented to t
i
15 City a proposal to provide consulting services for plan review o
extin uishing systems, including ..hydraulic calculations; and
"i 16 f ire g
17 WHEREAS, the City has previously contracted with Eriksen
18 Rattan Associates, Inc. to provide consulting services for the City
19 and
WHEREAS, the Consultant in such capacity has demonstratE
20
21 specialized knowledge and experience with fire codes and plan reviE
22 of fire extinguishing systems.
NOW, THEREFORE, IN CONSIDERATION OF THESE MUTUAL COVENANT:
23
1'I~ .THE PARTIES HERETO AGREE. AS FOLLOWS:
'I 24
SECTION 1• CONSULTANT'S SERVICES.
25 ~ erfo
The Consultant shall,. upon request by the City, p
26
plan review of fire extinguishing systems, including hydraul
27
28 calculations.
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r" 1 reports, information, data and exhibits shall be delivered to -the
2 City upon demand. No reports, maps, or other documents produced in
3 whole or in -part under this Agreement shall be the subject of an
4 application for copyright by or on behalf of the Consultant.
5 SECTION 10: INTERESTS OF CONSULTANT.
6 The Consultant affirms that it presently has no interest
7 an interest direct or indirect, in-any real
~ and sha 11 not have y ,
8 property in~the City or any other interest which would conflict in
9 any manner with performance of the. services contemplated by this
10 Agreement. No person having. such interest shall be employed by or be
11 associated with the Consultant.
12 SECTION 11: INDEMNITY AND INSURANCE.
13 The Consultant shall hold harmless and indemnify the City
14 against any and all obligations or liabilities whatsoever arising
i
15 out of the Consultant's performance of this Agreement. The
16 Consultant agrees. to provide insurance in .the amounts and forms
17 specified in Exhibit A, which is attached hereto and made a part
18 hereof by reference.
19 The Consultant. shall not commence performance of its
20 services under this Agreement until the above. insurance has been
21 obtained and proof of insurance has been filed with and approved by
22 the City.
23 SECTION 12: GENERAL TERMS AND CONDITIONS.
24 1. Termination.
25 Either party may terminate this Agreement at any time
26 without cause by giving at least ten (10) days notice in writing to
2°7 -the other. If the Agreement is terminated as provided herein, the
28 Consultant will be paid for the services provided and expenses
I _4~
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t ' y~
COUNCIL ~ AVID B. BREARLEY
LEONIS C. MALBURG City Attorney
FAX: (818) 330-5818
Mayor
THOMAS A. YBARRA f VIN WILSON
Mayor Pro-Tem / ~ /lljlector Community Services & Water
JV FAX: (213)588-2761
Wm. "BILL" DAMS
Councilman KENNETH J. DeDARIO
Director of Light & Power
H. "LARRY" GONZALES FAX: (213) 583-1953
Councilman
' DAVE TELFORD
W. MICHAEL McCORMICK Fire Chief
Councilman T FAX: (213) 581-1385
BRUCE V. MALKENHORST CITY HALL LOUIS RosENKRANTZ
City Administrator/City Clerk 4305 SANTA FE AVENUE, VERNON, CALIFORNIA 90058 Police Chief
FAX: (213) 581-7924 TELEPHONE (213).583-8811 FAX: (213) 581-1178
July 28, 1997
City Council
City of Vernon
Honorable Members:
Transmitted herewith is a Consulting Services Agreement with Eriksen-
Rattan Associates providing for consulting and plan check services for
the City.
-This has been reviewed by the Director of Community Services and the
City Attorney, and it is hereby recommended that the agreement be
approved and executed.
Very truly your's~,;
Bruce V. Malkenhorst
City Clerk
BVM/mm
July 23, 1997
TO: Bruce V. Malkenhorst, City Administrator
FROM: Samuel "Kevin" Wilson~Director of Community Services
& Water
SUBJECT: AGREEMENT FOR CONSULTING SERVICES
ERIKSEN-RATTAN ASSOCIATES
Herewith for your consideration is an Agreement with
Eriksen-Rattan Associates to provide consulting and plan check
services for the City.
It is recommended that the Agreement be approved by the City
Council and the Mayor and City Clerk be authorized to execute the
document. The City .Attorney has reviewed the Agreement and will
be preparing the resolution.
/ps
Attachment `
cc: City Attorney `
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9
PRODUCER
THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION
ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE
HOLDER. THIS CERTIFICATE DOES NOT AMEND, .EXTEND OR
TENUTO & ASSOCIATES ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW.
INSURANCE SERVICES, INC. °'COMPANIESAFFORDINGCOVERAGE
1508 WEST LEWIS ST. , SUITE B coMPANv
SAN DIEGO, CA 92103- A.TIG INSURANCE COMPANY OF MICHIGAN '
INSURED,
COMPANY
ERIKSEN-RATTAN ASSOCIATES, .INC. B NEW HAMPSHIRE INSURANCE 'COMPANY
8989 RIO SAN DIEGO DR. , SUITE 200 coMPANY
SAN DIEGO, CA 92108 ~
COMPANY
D
THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD
INDICATED, NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS
CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS,
EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS.
LTR - TYPE OF INSURANCE POLICY NUMBER POLICY EFFECTIVE POLICY IXPIRATION LIMITS
DATE (MM/DD/YY) DATE (MM/DD/YY)
GENERAL LIABILITY ~ GENERAL AGGREGATE $4 , O O::Q , O O O
X COMMERCIAL GENERAL LIABILITY PRODUCTS -COMP/OP AGG $2 , O O O ;``O O O
CLAIMS MADE ~ OCCUR PERSONAL & ADV INJURY $ 2 , O O O , O O O
B OWNER'S & CONTRACTOR'S PROT CAP 5 0 2 0 6 71 0 0 0 3/ 2 0/ 9 7 0 3/ 2 0/ 9 8 EACH OCCURRENCE $2 , 0 0 0, O O O
X CONTRACTURAL FIRE DAMAGE (Any one fire) $ 3 0 0, 0 0 0
LIABILITY MED EXP (Any one person) $ 5 0 0 Q
AUTOMOBILE LIABILITY
COMBINED SINGLE LIMIT $2 ' 0 0 0' Q 0 0
ANY AUTO
ALL OWNED AUTOS -
BODILYINJURY
SCHEDULED AUTOS (Per person)
B X HIRED AUTOS CAP 5 0 2- 0 6 71 0 0 0 3/ 2 0/ 9 7 0 3/ 2 0/ 9 8, BODILYiNJURY
X NON-OWNED AUTOS (Per accident) $
PROPERTY DAMAGE $
GARAGE LIABILITY AUTO ONLY - EA ACCIDENT $
ANY AUTO OTHER THAN AUTO ONLY: _
- EACH ACCIDENT $
AGGREGATE $
EXCESS LIABILITY EACH OCCURRENCE $
UMBRELLA FORM AGGREGATE $
OTHER THAN UMBRELLA FORM $
WORKERS COMPENSATION AND ORY IMITS OER
EMPLOYERS' LIABILITY
EL EACH ACCIDENT $
THE PROPRIETOR/ INCL EL DISEASE -POLICY LIMIT $
PARTNERS/EXECUTIVE
OFFICERS ARE: EXCL EL DISEASE - EA EMPLOYEE $
OTHER
PROFESSIONAL/ 37646731 03/20/97 03/20/98 $1,000,000 EACH CLAIM
A LIABILITY $1,000,000 ANN AGG
RETRO DATE: 03 20 97 5 000 SIR
DESCRIPTION OF OPERATIONS/LOCATIONSNEHICLES/SPECIAL ITEMS
CITY OF VERNON, ITS OFFICERS, AND EMPLOYEES ARE NAMED AS ADDITIONAL INSURED q
.PER ATTACHED. JOB DESCRIPTION: ALL OPERATIONS ~ ~'I
_ _ Ix,NCB#..C.~.1't`ItJ>~E............. .
SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE
CITY OF VERNON EXPIRATION DATE THEREOF, THE ISSUING COMPANY-WILL ENDEAVOR TO MAIL
4 3 0 5 SANTA FE AVENUE 3 Q DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE LEFT,
VERNON, CA 9 0 0 5 8 BUT FAILURE TO MAIL SUCH NOTICE SHALL IMPOSE NO OBLIGATION OR LIABILITY
OF ANY KIND UPON THE CO~IFANY, ITS AGENTS OR P NTATIVES.
AUTHORIZED REPRESENTATIVE
I
.
~1Q~#C) ~5-5 (1/95) ;
POLICY NUMBER: CAP 502 06 71 00 COMMERCIAL GENERAL LIABILITY
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
ADDITIONAL INSURED -OWNER, LESSEES OR
CONTRACTORS (FORM B)
This Endorsement modifies insurance provided under the following form:
COMMERCIAL GENERAL LIABILITY COVERAGE PART.
SCI3EDULE
Name of Person or Organization:
CITY OF VERVON, ITS OFFICERS AND EMPLOYEES
4305 SANTA FE AVENUE
VERNON, CA 90058
(If no entry appears above, information required to complete this endorsement will be shown in the
Declarations as applicable to this endorsement.)
WHO IS AN INSURED (Section II) is amended to include as an insured the person or organization shown
in the Schedule, but only with respect to liability arising out of "your work" for that insured by or for you.
CG 20 10 11 85 Copyright, Insurance- Services. Office, Inc., 1984
CUSTOMIZED ASSET PROTECTION POLICY
ARCHITECTS AND ENGINEERS ENDORSEMENT
This endorsement modifies insurance provided under the Customized Asset Protection Policy-and is applicable only if the Named
Insured listed on the. declarations page is an Architect or Engineer.
A. The following replaces the OTHER INSURANCE Common Policy Condition:
The insurance afforded by this endorsement is primary insurance for "bodily injury" or "property damage" that results from "your
work" .for an additional insured listed on this policy when required. specifically by the. additional insured. Any insurance
maintained by the. additional .insured. will be .considered .excess of insurance provided. by .our .policy and not contributory to this
policy.
B. .The following is -added to the TRANSFER OF RIGHTS OF RECOVERY AGAINST OTHERS TO-US, Common Policy
Condition:
When a work contract requires that the Condition Applicable to Liability Coverage be waived, we will do so only for payments
made for "bodily, injury" or "property damage" that results from "your work." This ~on~ition applies only. if r_he contract is
entered into before the "bodily injury" or "property damage" occurs.
For the .purposes of this endorsement, a work contract is defined as a contract you enter into for work or operations performed
by you or on your behalf.
C. EXCLUSION -DESIGNATED WORK
The. following. is added.:to the.Exclusions, Section B., of the Commercial Liability Coverage Form:
This insuranee.does not apply to "bodily injury,° "personal injury" or"advertising injury" arising out of any Architect or Engineer
acting, as a general contractor or any Architect or-Engineer engaged in, having control of or charge of construction means,
methods, sequences or procedures, or for safety precautions and programs in connection with ariy work project.
I?. OFFICERS, EMPLOYEES AND VOLUNTEERS
Provided any or all of the following AdditionalLnsured extensions is requiredunder a contract you enter into, or is imposed
by state. or political subdivision (i.e., under a certificate, endorsement; .etc.) then this entire Section D is:enacted in its entirety.
However; this .Additional Insured :extension only operates for an Additional Insured where a requirement exists as outlined in
the preceding sentence of this Section D.
The following is added as an Additional Insured:
Any officer, elected official, agent, representative, employee, volunteer or subsidiary agency of a state or political. subdivision.
already shown as an Additional Insured in the Policy Declarations, but only with respect to work done by the Named Insured.
E. WAIVER OF SUBROGATION
Provided a waiver of subrogation is required under a contract you enter into, or imposed by an Additional Insured, (i.e., under
a certificate, endorsement, etc..), then this entire Section E is enacted in its entirety. However, this waiver only operates for
an Additional Insured where a requirement exists in the preceding sentence of this Section E.
We waive the right of subrogation against an Additional Insured, but only as respects your work and/or premises described uz
a contract between the Insured and the Additional Insured.
TCAPP 168 (8194) THE NEw HAMPSHIRE
R III A Member Company of
Pa e 1 0(2 ®NeH• Hampshire Insurance Company, 1994 ,1?~IAmerican International Gmup, Inc.
lnsurance from The Ne«• Hampshire Insurance Comnanv and other memhrr fmm~aniPC ~FThN U..,, u.,,...,~~.,.A i.,.-...~....~ r:.,..._
'
~ Policy Number: 37646731
Renewal of: New - n/a
INSURANCE, ~ TENUTO L~ ASSOCIATES
I!~~UF.4\CE $EFVICES 1\'COFPOFATED
t 508 \~./EST LE\~9S STREET • SUITE B
SA\ DIEGO • CALIEOR_~IA Jzio;
TEL (6i9)-99''-i5i' F-~a (Er9) z99~-}Si5
DeClarationS EI~.oF35,95
Professional Liability
Insurance Policy for Technical Consultants
This is a Claims .Made and Reported Policy:
Read The Policy Carefully
Issued by the Insurance .Company Indicated. by an "X"
Insured by the Stock Company checked below and hereinafter called the Insurer.
TIG Specialty Insurance Company
# TIG Insurance Company of Michigan
Item 1. Parent Company and Address:
Eriksen -Rattan Associates Inc.
. 8989 Rio. San Diego Drive -Suite 200
San Diego, CA 92108 - 1648
Item 2. Policy Period ~
Effective Date: March 20..1997 Expiration Dater March 20. 1998 ~ 12:01 AM Standard
Time at the address
stated in Item 1. above
Item 3. Limit of Liability (inclusive of defense expenses):
(a) The Limit of Liability for each
claim under this policy shall not exceed $ 1 ,000,000 3 % .state tax. $132_00
.35% stamping fee $15.40
(b) The total Limit of Liabilityforall
claims under this policy shall not exceed $ 1.,000,000 in the Aggregate
Item 4. Assureds' Professional Services Covered By This Policy:
Independent fire and building code consulting services for afee.
-Item 5. Policy Retroactive Date
March 20. 1997 12:01 A.M. Standard Time at the address stated in Item 1. above
Item 6. Policy Premium:. Projected Gross
Revenues
$4,400.00 payable afthe effective date stated in Item 2. above $175,000
Item 7. Retention;(including defense expenses): Minimum Earned Premium
$ 5,000 each claim. ~ 1,100.00
The Declarations, together with the completed and signed application, Policy Form No.24817 and any endorsements
or addenda, all as attached heretofshall collectively constitute the policy.
Authorized Representative: / ~~~<< `
\v
~1
Decl Form 24817 (Rev 2/97) ,n
t
Porch N~imher: 37E4E731
Renewal nf; NaW - CL/2
INSURANCEW
Endorsements
Form No: 24821
Amended Bodily Injury Exclusion
It is agreed that clause ILI(B) is deleted and replaced by the following:.
- This policy. does not apply to any claim based upon or arising out of, directly or indirectly:
III(B) bodily injury, sickness, disease or death of any person, or mental or emotional
stress, distress, anguish, mental tension, pain or suffering unless the Assureds' iability-for
such claim is directly caused by the performance of professional services (as described in
the Declarations) by or at the direction of the Assureds;
{ Form No: 24826
Amended Property Damage Exclusion
' It is agreed that clause 'lll(C) is deleted and replaced by the following:
This policy does not apply to .any claim based upon or arising out;ofr$dir,~ctly or indirectly:
III(C)injury to or destruc#ion of any tangible property including they=loss~of use thereof
' unless the Assureds' liability for such .claim is directly caused by-`the performance of
professional services (as described in the Declarations) by or at the direction of the
Assureds;
form No: 24835..
,Estimates Of Probable Cost Exclusion
It is agreed that clause III is .amended in part to include the following additional excltsion:
This policy .does not apply to any claim based upon or arising out of, directly or indirectly:
estimates of probable cost or cost estimates being exceeded, unless the Assureds'
liability for such claim or claims is directly due to the. performance of professional services
as described in the Declarations rendered by at the direction of Assureds. in such
- professional capacity.
Form No: 24837
Failure To Complete Any Project On Time Exclusion - - -
It is agreed that clause III- is amended in part to include the following additional exclusion:
This policy does not apply to any claim based .upon or arising out of, directly or indirectly:
the failure to complete any project or service on time or schedule, unless such failure is
directly due to the performance of professional services as described in-the Declarations
rendered by or at the~direction of the Assureds in such professional capacity.
Form No: 24842
Independent Contractor. Exclusion
It is agreed that clause III is amended in part to include the following additional exclusion:
Thispolicy does not apply to any claim based upon or arising out of, directly or indirectly:
the performance of services provided by any- independent contractor, which may or may
not have been referred to the client by the Assureds;
i
9
Profes~ian~l Ir.i~~ility Ins~r~nce Policy
for Techn6cal consultant
L This is a "Claims-Made -and Reported" policy. Please read carefully.
Provisions
In consideration of the payment of premium, in reliance- upon the statements made to the
Insurer in the application, a copy of which is attached hereto and. made a part hereof, and
subject to the Declarations, terms, definitions, conditions, limitations and amendments as
~ hereinafter provided, the Insurer agrees as follows:
I. Insuring Agreement above in the event of his/her death,
.incapacity or bankruptcy.
To pay on behalf of the Assureds any -
loss which the Assureds shall (B) The term "Claim" shall mean any
become legally obligated to pay .for written demand for money, including
Claims first made against the the service of suit or institution of
Assureds and. reported in writing to arbitration proceedin~s,~~
the insurer during the policy period or ; "
the discovery period, if purchased, by (C) The term "defense expenses"
reason of any .wrongful act .solely shall mean .all necessary and
while in the performance of reasonable (1) fees charged by an
professional services stated in the attorney(s) .designated by the Insurer
Declarations which are rendered by or and '(2) other expenses resulting from
on behalf of the Assureds, PROVIDED the investigation, adjustment. defense,
ALWAYS THAT such wrongful act and appeal of a Claim, if incurred by
occurs on or after the retroactive date in the Assureds with the Insurer's
the Declarations. consent.. However, "defense
expenses" shall not include salaries of
II. Definitions regular employees or .officials of. the.
Assureds or any supervisory counsel
The following terms shall have the retained by the Insurer, or loss of
meaning. set .forth below when used earnings incurred by the Assureds.
throughout this policy: - _ - - - - - - - -
(D) The term "Loss" shall mean .the
(A) The term "Assureds" shall mean: amount in excess. of the retention-that
-the Assureds -are obligated to pay
1. the "Parent Company" in Item 1 of solely by reason of any Claim
the. :Declarations, including any insurable hereunder in respect of their
..partner, officer, director or legal liability and, subject to all other
employee thereof so ely while. terms,. conditions, definitions,
acting within the scope of their exclusions and limitations of this.: policy,
duties; shall include damages, judgments,.
settlements, reasonable and necessary .
2. the heirs, .executors, administrators, defense expenses incurred in the
assignees and . legal defense of any action or suit .and any
representatives of each .person appeal therefrom; provided always that
E&O Form: 24817 (Rev. 2/97)
i
the term "loss" shall not include fines or (c) injury to or destruction of .any
penalties imposed by law, taxes, tangible property including he Loss of
punitive or exemplary damages or the use thereof;
two-thirds portion of any .treble
damages or that portion of any (d) false arrest, detention or
multiplied damages which exceeds the imprisonment, libel, slander,
amount multiplied, and matters which defamation of character, invasion of the
are uninsurable under the law pursuant right of privacy, wrongful eviction,
to which this policy shall be construed. assault or battery;
(E) The. term "policy period" shall (e) unfair or illegal discrimination;
mean the period. in Item 2 ofi the
Declarations from the effective date of (f) any .business .enterprise or other
this policy to the expiration date or entity -in which any Assured is a
cancellation date, if any, of this policy. director, .partner, officer, principal
" stockholder or employee or which is
(F) The term "retention" shall mean controlled,... operated, or managed by
~ the applicable amount stated in Item 7 the Assureds, either .individually or in
of the Declarations which shall apply a fiduciary capacity, including- .the.
separately in respect of each C I a i m ownership, maintenance or use of any
insurable hereunder and shall be borne property in conn~ptiar therewith, or to
~ uninsured by the Assureds prior to any Claim made against any Assured
any: payment for. loss by the Insurer. solely because the Assured is a
partner, officer, director, stockholder or
i (G) The term "wrongful act" -shall employee of any firm or corporation not
mean any-actual or alleged breach of .named in the Declarations;
duty, error, misstatement, misleading
statement or .omission done or (g) an .Assured against another
attempted by the Assureds while in Assured, including. but not limited to a
the performance of professional C I a i m by reason of or in connection
services stated in the Declarations. with the actual or alleged termination or
discharge of an Assured from his/her
1II. Exclusions position of employment;
}
This Policy does not apply to any (h) any litigation, proceeding,
Claim based upon or arising .out of, administrative act or .hearing. brought
directly or indirectly: prior to or pending as of the: policy
retroactive date as well as any future
(a) any intentional, fraudulent, litigation, proceeding, administrative act
dishonest, or criminal acts by or at the or hearing based upon -any such
direction of the Assureds; pending or prior litigation, proceeding,
administrative act or hearing or derived
(b) .bodily injury, sickness, disease or from the essential facts or
death of any person, or mental or circumstances underlying or alleged in
.emotional stress, distress, anguish, any such pending or prior litigation,
mental tension, pain or suffering; proceeding, administrative act or
hearing;
E&O Form: 24817 (rev 2/97) 2
(i) any failure or omissio;~ on the. part. of (including the discovery period., if
the Assureds to effect or maintain purchased) and shall include defense.
insurance or bonds, including adequate expenses.
coverage and limits or any self-
insurance or self-insured retention 3. Ail. Claims .wising. from the same..
program; wrongful act or interrelated, repeated
or continuous wrongful acts of one or
Q) the Employee Retirement Income morn Assureds. shall constitute a
Security Act of 1974, Public Law 93 single :Claim and shall be deemed to
406,. commonly referred to as the be a C l a i m first made and reported to
Pension .Reform Act of 1974, and the Insurer. in the p®licy period or
amendments thereto, or similar discovery period, if applicable, in which
.provisions of any federal, state or local the first such wrongful act is reported
statutory law or common law; to the insurer in accordance with
Clause VI (A), and shall be subject to a
(k) non-pecuniary or injunctive relief; single retention and a single per
:claim limit of liability.
(I) the Assureds gaining in fact any
personal profit or advantage to which V. Defense expenses
such Assureds were not legally (included in limit of
entitled or for the return by the liability)
Assureds of any remuneration if
payment of such remuneration shall be With respect to such insurance as is
held by a court to-have been illegal; afforded by this policy and subject to
the limits of liability and obligation of the
(m) the bankruptcy, liquidation or Assureds to pay the retention:
insolvency of the Parent Company.
(V. Limit of Liabilit (a) The Insurer shall defend any Claim
Y insurable hereunder and pay defense
(inclusive of defense expenses arising out of such Claim.
expenses). The'Assureds-shall not admit liability
for or settle' any C I a i m or incur any
1. Limit~of.~Liability -Each Claim: the related cost or expense without the
liability of the Insurer for each. Claim approval of the Insurer. The Insurer
first made .and reported in writing to the shall .have the right to make such
Insurer during the policy period investigation and conduct negotiations
(including the discovery period, if .and enter into such settlement or
purchased), shall not exceed the compromise of any Claim as the
amount .stated in Item 3(a) of the Insurer deems expedient.
Declarations, and shall- include
defense expensev. (b) The Insurer shall not be obligated to
pay any loss or to defend or continue
2. Limit of .Liability -Aggregate: subject - to defend any .Claim after - -the
to Limit of Liability -.Each Claim, the applicable limit of the Insurer's liability
liability of the Insurer shall not exceed has been exhausted by the payment of
.the :amount stated in Item 3(b) of the loss.
Declarations as a result of all C I a i ms
first made and reported in writing to the
Insurer during the policy period
E&O Form: 24817 (rev 2/97) 3
Vl. General Ganditions to -the Insurer of the
circumstances and :the specific
(A) Notice Provisions reasons for anticipating such
C I a i m(s) with full particulars as
(i) The date ofi loss from any Claim to dates and persons involved as
within the meaning of this policy soon as possible .but in no event
shall be the date on which the later than the expiration date of
Assureds `shall give written this policy, to Gramercy Park
i notice of C I a i m to the Insurer as ~ Program Managers, TIG.; 140
hereinafter provided.. East 45th Street, New York, NY
10007; Attention: Errors and
(ii) If during the policy period or Omissions Liability Claims
discovery- period, if applicable, Officer, by certified .mail. Any
the Assu-reds receive written Claim subsequently arising from
1 notice of C l a i m from a specified such circumstances shall be
third party that it intends to hold considered to have _ been
the Assureds legally reported during the. policy
~ responsible for. the results of a period or discovery period if
~ specified wrongful act, .the applicable.
Assureds, as a condition
~ .,,precedent to .the right- to be (iv) The Assu~r~~i~°shall give the
l defended or reimbursed under Insurer sueh information and
this policy, must give written cooperation as it may reasonably
notice by certified mail thereof to require.
Gramercy Park Program
Managers, TIG; 140 East 45th (B) Cancellation
x Street, New York, NY 10007;
Attention: Errors and Omissions (i) This policy may be .cancelled by
Liability Claims Officer, as soon the Assureds by mailing or
as possible but in no event later delivering prior written notice to
than .thirty days or the expiration the Insurer or by surrender of this
date of this policy, whichever is policy to the Insurer.
sooner, after receiving such
i writfen. notice. If this policy is cancelled by the
Assureds,.- the Insurer shall
(iii) If during the policy period or retain the customary short rate
discovery period, if applicable, proportion of the premium
the Assureds shall become _ hereon...
aware of any circumstances
which may. reasonably be (ii) This policy may also be
expected to give rise to a Claim cancelled by or on behalf of the
being made against the Insurer by delivering to the
Assureds by a specified third Parent Company or by mailing to
party for the results of a specified the Parent Company by
wrongful act, the Assureds, registered, certified or other first
as a condition precedent to the class mail, at .the Parent
right to be defended or Company's address. stated in
reimbursed under this policy Item.1 of the .Declarations, written
must. give written notice thereof notice stating when not less than
E&O Form: 24817. (rev 2/97) 4 .
I
thirty days after the date of such
notice the cancellation shall be (F) .Parent Company Authorization
effective. The mailing of such
notice as aforesaid .shall be Except as respects the giving of notice
sufficient proof of notice. to apply for -the. discovery period, by
acceptance of this policy, .the Parent
ff this policy. is cancelled by or on Company agrees to -act on behalf of the
behalf of the Insurer, the Insurer Assureds with respect to the payment
shall retain the pro-.rata.. or return of premium,.. the receipt and
proportion of the premium acceptance of any endorsements, the
hereon. cancellation. of .the policy, the
negotiation of renewal, and the giving
The Insurer may cancel this policy or receipt of any notice provided for by
on ten days notice for the terms and conditions of thispolicy.
nonpayment of premium due.
(G) Policy Changes _
(C) Conformity to Statute
This policy shall not be amended.. nor
Any terms of this policy which .are in shall its .terms be waived except by
conflict with the terms of any .applicable endorsement issued by, the Insurer to
laws construing this policy are hereby form a -part of this.~polfe~~nd signed by
amended to conform to such laws. an authorized representative of the
Insurer.. Notice ~ to any agent or
(D) Subrogation knowledge possessed by any agent or
by -any other person shall not.. effect a
In the event of ,any payment of loss waiver or .change in any ..part of this
.under this policy, the Insurer shall be policy or estop the Insurer -from
subrogated to the extent - of such asserting any right under the terms of
payment to all rights of recovery the policy.
therefore, and the Assureds shall -
execute and deliver all papers and {H) Reporting .Requirements
instruments required and hall do
everything that .may be necessary to The Parent Company agrees to notify
secure such rights including the the Insurer in writing within forty five
execution of any documents necessary days thereafter of any:
to enable the .Insurer effectively to bring
suit in the name of the Assureds:. (a) change in: the name or
address of the Parent Company;
(E) Settlemen# and Assignment or
(b) mergers or acquisitions:
The Assureds shall not admit liability
voluntarily, make any'payment, agree to The .Insurer shall have the .right upon
any settlement or confess or otherwise receipt of said notice regarding any
consent to any judgment with respect. to mergers or acquisitions to charge
any Claim insurable hereunder without additional premium to the Assureds in
the written. consent of the Insurer. This consideration of such change or to
policy and any and all rights hereunder cancel the policy.
is not assignable without the written
consent of the Insurer. (I) Policy Renewal _
E&O Form: 24817 (rev 2/97) _ 5
i
~ .
This right of discovery shall not apply in
' Renewal of the policy is subject to the event of (i) cancellation of the .policy
the following preconditions: by .the Insurer resulting from the
nonpayment of any' premium due under
(i) The .Parent Company. must submit this policy, or (ii) the failure of the
at -least thirty days. prior: to the Assureds to meet the requirements of
expiration date of this policy. a Clause VI (I). Policy Renewal.
properly executed renewal
application and all other The offer by the Insurer of renewal
information as the Insurer. may terms, .conditions,- limits. of liability or
~ reasonably .require. premiums different.. from -those of the
~ expiring policy. shall. -not. constitute
(ii) Notwithstanding the nonrenewal of the policy by the Insurer.
preconditions set .forth in {i)
above, the .Insurer is not VIII. Arbitration
obligated to renew this policy or -
to offer a quotation for the 1. Conditions: Any .controversy arising
renewal of this policy. out of or relating to this policy shall be
settled by binding arbitration in
VII . Discovery Period. accordance with _ t~e4~ rules of .the
American Ar~i~ratibn - Association
. If the Insurer cancels this policy or (herein "AAA") `then in effect. The
refuses to offer a quotation -for the Assureds. and the Insurer, before
renewal of this.. policy- (such refusal entering into arbitration, shall.. each
hereinafter referred to as appoint an arbitrator. Each arbitrator
"nonrenewal"), the Assureds shall, shall be a present or former insurance
upon payment of an additional premium industry executive. Within thirty days
of fifty percent of the. total policy after one... parry notifies the other. of its
premium, have the right to an extension demand #or arbitration and names its
of the insurance provided by this .policy arbitrator, the .other party shall name its
in respect of any Claim first made .arbitrator. Within thirty days of the
against the Assureds and reported in naming of the second arbitrator, the,two
writing to the Insurer. during the period arbitrators will select a third arbitrator to
of six months after the effective date of be chairman of the panel Should. the
.such cancellation _ or non-renewal, but two arbitrators not be able to agree on a
only. in respect of any .wrongful .act choice of the third, then the AAA shall
before the effective date of such make the appointment of a person. who
cancellation or non-renewal and is neutral to the parties in controversy.
otherwise insurable under this policy None of the arbitrators shall be current
or former officers, principals, directors,
This right of discovery shall terminate if stockholders, partners, or employees of
the Assureds do not provide written the Parent Company or Insurer. The
1 notice requesting such. extension three. arbitrators shall comprise -the
(together with the payment of the arbitration panel for the purpose. of this
additional premium due) which is policy.
l received by the Insurer .within ten days
l after the effective date of cancellation or 2. Judgment: Each party to this policy
non-renewal.. shall submit its case .with supporting
documents to the arbitration panel.
E&O Form:24817 (rev 2/97) ~ 6
l
within thirty days .after appointment of
the third arbitrator. However, the panel
may extend this period for a reasonable
time. Unless extended by the consent
of the parties to this arbitration, the
majority of the three arbitrators -shall
issue a written decision resolving the
controversy before them within thirty
days. of the time. both parties are
.required to ~ submit their case and
related documentation. The arbitrators'
written decision shall state the facts
reviewed, conclusion reached, and .the
reasons for their conclusions. Said
decision shall. be -final and .binding
upon both parties in any court of .
competent jurisdiction.
3. Fees And Expenses: Each. party
shall pay the fees and expenses of its
..arbitrator, unless otherwise agreed by _ ~
the parties. The remaining costs of the
arbitration shall be shared equally ' by •
both parties. Arbitration shall take
place in New York, New York, unless
otherwise agreed to by both parties.
. E&O Form: 24817 (rev 2/97) ~
F
i
INSURAl~TC~,~
IN WITNESS WHEREOF, the Company has caused this policy to be signed by its president and secretar}
and countersigned on the declarations page by a duly authorized representative of the company..
i
TIG Insurance Company
• SECRETARY PRESIDENT
• TIG Premier Insurance Company
SECRETARY PRESIDENT
- TIG Countrywide Insurance Company
i SECRETARY PRESIDENT
TIG Specialty Insurance Company
_ ,
SECRETARY - PRESIDENT
TIG Indemnity Company
SECRETARY PRESIDENT
TIG Insurance Company of Texas
SECRETARY PRESIDENT
TIG Insurance Company of Michigan
SECRETARY PRESIDENT
h'••
TIG .Insurance Corporation of America
SECRETARY PRESIDENT
TIG Insurance Company of Colorado
SECRETARY PRESIDENT
Fairmont Insurance .Company
SECRETARY
PRESIDENT
Chilton Insurance Company
SECRETARY PRESIDENT
Industrial• County Mutual Insurance: Company
SECRETARY -
PRF.SInFAtT'
.NOTICE:
1 • INSURANCE POLICY THA3` YOU ~yE
PURCHASED IS BEING ISSUED BY AN I~VSUItER
IS ~tOT LICENSED BY T'HE STATE OF CALIFORNIA..
TI:~E COMPS ARE .CALLED "NONAD~TT'ED"
OR "SITRPLUS LIME" INSURERS.
Z. THE T~ISURER IS NOT SUBJECT TO THE FIrTANCIAI,
SOLVENC'~ REGULATION AND ENFORCEMENT
WT~ICH APPLIES TO CALIFORNIA LICE~I~E1~
INSURERS. -
3. Z~iE INSURER DC1ES NOT PARTICIPATE I3~ ANY. QF
THE INSURANCE GI7A?RANT'EE FUNDS CREATED BY
CALIFORNIA LAW.. T'F3.EREFOR.E, THESE. FUNDS
WILL NOT PAY YOUR CLAIMS OR PROTECT 'YOUR
ASSETS ~ THE INSURER BECOMES INSOLVENT AND
IS UNABLE TO MARE PAYMENTS AS PRONIISED.
4. ~ FOR ADDITIONAL Il"~FORNIATION ABOUT :THE
.INSURER YOU SHOULD ASK Q~STIONS OF Y OU'R
INSZT32ANCE AGENT, :BROKER, Q~Z "SURPLUS LINE"
BROKER OR CONTACT THE CALIFORNIA
DEPAR'Z'1'I~NT OF INSURANCE, AT 'THE FOLLOWING.
TOLLr-FREE TELEPHONE rIIJMBER: 1-500927-~4~357.
FCRM 0-2 (REV.' 12/96)
CUSTOMIZED ASSET PROTECTION POLICY
.COMMON POLICY CONDITIONS
All coverages of this policy are subject to the following conditions.
A. CANCELLATION
1. The first Named Insured shown in the Declarations may cancel this policy by mailing or delivering to us advance written
notice of cancellation.
2. We may cancel this policy by mailing or delivering to .the first Named Insured written notice of cancellation at least:
a. 5 days before the effective date of cancellation if any one of the following conditions exists at any building that is
Covered Property in this policy.
(1) The building has been vacant or unoccupied 60 or more consecutive days. This does not apply to:
(a) Seasonal unoccupancy; or
(b) Buildings in the course of construction, renovation or addition.
Buildings with 65% or more of the rental units or floor area vacant or..unoccupied are considered unoccupic:?
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 and are not being replaced.
This does nct apply to such removal that is necessary or incidental to any renovation or remodeling.
n
c;\~w Ijemp~hirc In~uranct Comp my. 1192 t
'InrluJ~: mp~ri~~hi~~J m.ncriel from In.wr:+nc ti •~.ir~s O(lire.. Inc.. _ THE N>=W HA;~11'~)-11RE
i h ~~s ptrnussion.
P,..,• 1 ..r 9 r ti, ~ nrr;,.~ i.... ~ ~ i i oc<c ~ s nn•,rt,~,.., cn n.p:my or
CUSTOMIZED ASSET PROTECTION POLICY
(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. ~Ve 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 refitnd 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 cf 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, intentionat.iy 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 tothree years afterward.
E. INSPECTIONS AI\TD SURVEYS
We have the right but are not obligated to:
L Make inspections and surveys at any time;
cFPP o05 c~oi9z~ Page 2 of 4
S~
CUSTOMIZEE ASSET PROTECTION POLICY
2. Give you reports on the conditions we find; and
3. Recommend changes.
Any inspections, surveys, reports or recommendations relate only to insurability. and the premiums to be charged. We do
not undertake to perform the duty of any person or organization to provide for .the health or safety of workers or the publ ic.
And we do not warrant that conditions:
1. Are safe or healthful; or .
2. Comply with laws, .regulations, codes or standards.
This condition applies not only to us, but also to any rating,. advisory, rate service or similar organization which makes
insurance inspections, surveys, reports or recommendations.
F. INSURAI~TCE 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 ~ R~
if we adopt any revision that would broaden the coverage unrier this policy without addifional premium within 45 days prior
to or during the policy period, thebroadened coverage-will immediately apply to this policy.
H. -OTHER INSURAI~'CE
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.
2. Business Liability Coverage is excess over any other insurance that insures for direct physical loss or damage.
3. 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.
I. PREMIUMS
1. The first Named Insured shown in the Declarations:
a. Is responsible for the payment of a]1 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:
CAPP 005 (10/92) DROP ~ of d
• CUSTOMIZED ASSET PROTECTION POLICY
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 anniversuy 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. TRANSFER OF RIGHTS OF RECOVERY AGAIl\'ST O'T'HERS TO US
1. Applicable to Property Coverage:
If any person or organization to or for whom we make payment under this policy has rights to recover damages frcm
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 part~~ is one of the following:
(1) ,Someone insured by this insurance;
(2) A business firm:
(a) Owned or controlled by you; or
(b) Thatowns or controls you; or
(c) Your tenant.
You may also accept tha usual bills of lading or shipping receipts limiting the liability of carriers.
This will' not restrict your insurance.
2. Applicable to 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.
Ii. TRANSFER OF YOUR RIGHTS AND DUTIF~S 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.
cnaa oos ctioi9z~ _ Page 4 of 4
CUSTOMIZED ASSET PROTECTION POLICY
NON-OWNED AND HIRED AUTO LIABILITY
This additional coverage modifies. insurance provided under the Commercial Liability Coverage Form.
A. COVERAGE
Insurance is provided only if a premium charge is shown in the Policy Declarations.
1. No>Q-Owned Auto Liability
The insurance provided under the Commercial Liability Coverage Form, Paragraph A.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.
2. Hired. Auto Liability
The insurance provided under the Commercial Liability Coverage Form, Paragraph A.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.
r
B. For insurance provided by this additional coverage only: -
-The Exclusions under the Commercial Liability Coverage Form Paragraph B.1. Applicable to Business Liability Coverages,
other than exclusions a., b., d., f. and i. and the Nuclear Energy Liability Exclusion, are deleted and replaced by the
following:
1. "Bodily injury":
a. To an .employee of the insured arising out of and in the course of employment by the insured; or
b. To the spouse, child, parent, brother or sister of that employee as a consequence of a. above.
2. 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.
3. This Exclusion does not apply to:
a. Liability assumed by the insured under an "insured contract;" or
b. "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.,
JNcw Flampshire Insurance Company, 199?
(Includes mpvrichttd m:nuial from Insurance Sen•ices Offices, Inc.. THE NEW HAMPSHIRE
LAPP 009 (10/9?) with it_s ptrnussi4n, _ -
A MempPr Comp~rry of
Page l of 2 Copyright, ln_surance Serv,ce <~ftice, Inc., ]98.i) - A;,,~,;~,,,, ,,.,,,,,,o,,,ie,oue,~„c.
Insurance from the New-Hampshire Instuance C~mn,~~~ ,,,~I nrh.~, .,,~.,,r..r _ u__.__~ _ r___- _
CUSTOMIZED ASSET PROTECTION POLICY
r
4. "Property damage" to:
a. Property owned or being transported by, or rented or loaned to the insured; or
b. Property in the care, custody or control of the insured.
C. WHO IS AN INSURID
WHO IS AN INSURED in the,Commercial Liability Coverage Form, Section C, WHO IS AN INSURED, is replaced by
the following:.
i. Each of the following is an insured under this additional coverage to the extent set forth below:
a. You;
b. Fora "non-awned auto," any partner or executive officer of yours, but only while such "non-owned auto" is being
used in your business.; and
c. Any other person using a °hired auto" with your permission;
d. Any otherperson or organization, but only for their liability because of acts. Q~ omissions of an insured under a.,
b. or c. above.
2. None of the following is an insured:
a. 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;
b. Any partner or executive officer for any "auto" owned by such partner or officer or member of his or her
household;
c. Any person while employe.i in or otherwise engaged in duties in connection with an "auto business," other than an
"autobusiness" you operate; `
d. The owner of a "non-owned auto" or the owner or lessee (of whom you are a sublessee) of a "hired auto" or any
other agent. or employee of any such owner or lessee;
e. 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.
DEFZNTTIONS
The following. additional. definitions apply:
1. "Auto. Business" means the business or occupation of selling, repairing, servicing, storing or parking "autos."
2. "Non-0wned Auto" means any "auto" .you do not own, lease,-hire or borrow-which is used in connection with your
business: However, if you are a partnership, a "non~wned auto" does not include any "auto" owned by any partner.
3. "Hired Auto" means any "auto" you lease, hire or borrow. This does not include any "auto" you lease, hire or borrow
fronn any of your employees or members of their households, or from any partner or executive officer of yours.
._3
CUSTOMIZED ASSET PROTECTION POLICY
SCI~DULE OF ADDITIONAL INSUREDS
This endorsement modifies insurance provided under the Commercial Liability .Coverage Form.
Please refer to the Policy. Declarations, Additional Protected Persons, for names and types of Additional Insureds.
A. CONTROLLING INTEREST
The following are added in the Policy Declarations as an Additional Insured but only for their liability arising out of:
1. Their financial control of you; or
2. Premises they own, maintain or control while you lease or occupy those premises.
This insurance does not apply to structural alterations, new construction and demolition operations performed by or for that
person or organization.
B. iV1ANAGERS OR LESSORS OF PRENIISES
The following is added as an Additional Insured:
Any person or organization shown in the Policy Declarations,. but only with respect to~liability arising out of the ownership,
maintenance or use of that part of the premises leased to you and shown in the Policy Declarations and subject to the
following additional exclusions:
This insurance does not apply to:
1. Any "occurrence" which takes place after you. cease to be a tenant in the premises.
2. Structural alterations, new construction or demolition. operations performed by or on behalf of the person or organization
shown in the Policy Declarations.
C. POLITICAL SUBDIVISION
The following is added as an Additional Insured:
Any state or political subdivision shown in the Policy Declarations, but only with respect to the following hazards for which
the state or political subdivision has issued a permit in connection with. premises. you own, .rent or control and to which this
insurance applies:
1. The existence, maintenance, repair, construction, .erection or removal of advertising signs, awnings, canopies, cellar
.entrances, coal holes, driveways, manholes, marquees, hoistaway openings, sidewalk vaults, street banners, or
decoration and similar exposures;
2. The construction, erection or removal of elevators.; or
-~e~' I~ampshire Insurance ComPan}. 199_'
(Includes cop~Tichied material from Insurance se~~iC~S oir«•,. Inr . THE NE\U ~ 1;~~'(~'~`:~~E
C'APP Ol U (10/9~j ~•ith its ~rniission. ® ra..,,,~,~ ~ o•,.,~,..~~
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CUSTOMIZED ASSET PROTECTION POLICY
3. The ownership, maintenance or use of any elevators covered by this insurance.
D. MORTGAGEES
The following is added as an Additional Insured:
Any Mortgagees, .assignees and receivers shown in the Policy Declarations, but only with respect to their liability as such
which arises out of the ownership, maintenance or use by you of the premises to which this insurance- applies.
3. ARCHI'ITECT, ENGINEER OR SURVEYOR
Any architect, engineer or surveyor shown in `the Policy Declarations, .and engaged by you, is also an insured, but only
with respect to liability arising out of your premises or "your work."
The insurance with respect to such architects, engineers or surveyors does not apply to "bodily injury," "property damage,"
"personal injury" or "advertising injury" arising-out of the rendering of or the failure to render any professional services
by or for you,. including:
1. The preparing, approving, or failing to prepare or approve maps; drawings, opinions, reports, surveys,. change orders,
designs or specifications; and
2. Supervisory, inspection or engineering services. ~ ,
CO-OWNER`OF PREMISES
The following is added as an Additional Insured:
Any person(s) or organization(s) shown in the Policy Declarations, but only with respect to their liability as co-owner of
insured premises.
J. %QUIPA~NT LESSOR
The following is added as an Additional Insured:
Any person or organization shown in the Policy Declarations who leases equipment to you, but only. with respect to liability
arising out of the maintenance, operation or .use by you of equipment leased to you by that person or organization subject
to the following additional exclusions:
This insurance does not apply to:
1. Any "occurrence" which .takes place after the equipment lease expires; or
2. "Bodily injury" ar "property damage" arising out of the sole negligence of the person or organization who leased the
equipment to you.
3. GRA'N'TOR OF FRANCHISE
The following is added as an Additional Insured:
Any person or organization shown in the Policy Declarations who has granted you a franchise, but only with respect to their
liability arising from such granting of a franchise to you. .
Page 2 of 4
ChPP Qi0 (10/92)
~ CUSTOMIZED ASSET PROTECTION POLICY
I. VENDOR
The following is added as an Additional Insured:
Any person or organization shown in the Policy Declarations as a vendor, but only with. respect to "bodily injury" or
"property damage" arising out of "your products" .which are distributed or sold in the regular course of the vendor's
business, subject to the following additional exclusions:
1. The insurance afforded the vendor does not apply to:
a. "Bodily injury" or "property damage" for which the vendor is obligated to pay damages for reason c the assumption
of liability in a contract or agreement. This Exclusion does not apply to liability for damages that the vendor would
have in the absence of the contract or agreement,
b. Any .express warranty unauthorized by you;
c. Any physical or chemical change in the product made intentionally by the vendor;
d. Repackaging, unless unpacked solely for the purpose of inspection, demonstration, testing or the substitution of pans
under instructions from the manufacturer, and then repackaged in the original container;
e, Any failure to make such inspections, adjustments, tests or servicing as the vendi~r bias agreed to make or norma?]v
undertakes to make in the usual course of business, in connection with the distribution or sale of products;
f. Demonstration, installation, .servicing or repair operations, except such operations performed at the vendor's
premises in connection with the sali; of the product;
g. Products which, .after distribution or sale by you, have been labeled or relabeled or used as a container; part or
ingredient of any other thing or substance by or for the vendor.
2. This insurance does not apply.to any insured person or organization, from whom you have acquired such products, or
any ingredient, part or container, entering into, accompanying or containing such- products.
J. DESIG:~:4TED PERSON OR ORGANIZATION
The entity or entities shown in the Policy Declarations is/are Additional Insureds) but only with respect to liability arising
out. of your operations or premises oa-ned by or rented to you;
K. VOLU?`TEERS
The following is added as an Additional Insured: .
Any person who is a volunteer worker for you, but only while acting at the direction of you and within the scope of their
duties for you. .However, no volunteer(s) are insureds for:
1. "Bodily injury" to:
a. Co-volunteer(s) or your employee(s) arising out of and in the course of their duties for you; or
b. You or, if you are a partnership or joint venture, any partner or member.
Paae ~ ci
CUSTOMIZED ASSET PROTECTION POLICY ;
2. "Property damage" to property owned, occupied or used by, rented to, in the care, custody or control of, or over .which
physical control is being exercised for any purpose by:
a. Co-volunteer(s) or your. employee(s); or
b. You or, if you are a partnership or joint venture, any partner or member.
n.,,.~ ter"
. CUSTOMIZED ASSET PROTECTION POLICY
f
COMIVLERCIAL LIABILITY 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 policy 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.
The word "insured" means any person or organization qualifying as such under SECTION C V1H0 IS AN INSURED.
Other words and phrases that appear in quotation marks have special meaning. Refer to SECTION F LIABILITY AND
MEDICAL. EXPENSES DEFINITIONS.
A. COVERAGE -
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,." "personal injury" or "advertising injury" to .which this insurance applies. We will have the right
and duty to defend any "suit" seeking those damages.. We may at our discretion investigate any "occurrence" and
settle any claim or "suit" that may result. But:
(1) The amount we will pay for damages is limited as described in SECTION D LIABILITY AND MEDICAL
EXPENSES LIMITS OF INSURANCE; and
(2) Our right andduty to defend ends when we haveused up the applicable Limit of Insurance in thepayment of
judgments or settlements or medical expenses.
No other obligatican Qr liability to pay sums. or perform acts or services is covered unless explicitly provided for
under 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;" and
(b) The "bodily injury" or "property damage" occurs during the policy period.
(2} To:
(a) "Personal injury" caused by an offense arising out of your business, excluding advertising, publishing,
broadcasting, telecasting or the practice of law done by or for you;
c Hamc~~:`.~:i~: ur._i-asrc~ C`~eL:;-nc.ISyf
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` _ i I O/V~ i with ids rtrnussiim.
P:~~~; I ,+i I'J (:op~~ri ~ht. iniuranct ~tnict QfGc~~. Inc.. 1')S+'JI qm~^':;~~„ ~;i~;~;";~..,•~
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CUSTOMIZED ASSET PROTECTION POLICY '
(b) "Advertising injury" caused by an offense committed in the. course of advertising your goods,. products
or services;
but only if the offense was committed in the."coverage territory" during the policy period.
c. Damages because of "bodily injury" include damages claimed by -any person or organization for. care, loss of
services or death resultingat anytime from the "bodily injury."
d. Coverage Extension -Supplementary Payments
In additiod to the Limit of Insurance, we vr~ll pay, with respect to any claim or "suit" we defend:
(1) All expenses we incur.
(2) ,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.
(3) The cost of bonds to release attachments,. but only for bond. amounts. within our Limit of Insurance. We e~
not have to furnish these bonds.
(4) 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 X100 a day because of time off from- work. .
(S7 All costs taxed against the insured in the "suit."
(r7 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.
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 pan of the judgment that is within our Limit of Insurance.
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.
cn~~ ooz cioi9z> Page 2 of 19
CUSTOMIZED ASSET PROTECTION POLICY
b. We will make these payments regardless of fault. These payments will not exceed the Limit of Insurance. We will
pay reasonable expenses for:
(1) First aid 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. AppIieable to Business Liability Coverage -This insurance does not apply to:
a. "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. "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) 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; or
(2) That the insured would have in the absence of the contract or agreement.
c. "Bodily injury" or "property damage" for which any insured may beheld liable by reason of:
(1) Causing or contributing to the intoxication of any person;
(2) The furnishing, of'=alcoholic beverages to a person under the legal drinking age or under the influence of
alcohol; or '
(3) Any statute, ordinance or regulation relating to the sale, gift, distribution or use of alcoholic beverages.
This Exclusion applies only if you are in the business of manufacturing, distributing, selling, serving or furnishing
alcoholic beverages.
d. Any obligation of the insured under a workers compensation, disability benefits or unemployment compensation law
or any similar law.
e. (1) "Bodily injury" to:
(a) An employee of the insured arising out of and in the course of employment by the insured; or
(b) The spouse, child, parent, brother or sister of that employee as a consequence of (1) above.
(2) 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 the
injury.
cnPP ooz cioi9z~ Page 3 of L9
CUSTOMIZID ASSET PROTECTION POLICY
(3) This Exclusion does not apply to liability assumed by the insured under an "insured convact."
f. (I) "Bodily injury" or "property damage" arising out of the actual, alleged or threatened .discharge, dispersal,
seepage, migration, release or escape of pollutants:
(a) At or from any premises,. site or location which is or was at any time used by or for any insured or others
for the handling, storage, disposal, .processing or treatment of waste;
(b) Which are or were at any time vanspo*ted, handed, stored, treated,. disposed of, or processed as waste
by or for any insured or any person or organization for whom you may be legally responsible; or
(c) At or .from any premises, site or location on which any insured or any contractors or subcontractors
working directly or indirectly on any insured's behalf are performing operations:
(i) If the pollutants are brought on or to the premises, site or location in connection with such operations
by such insured, contractor or subcontractor; or
(ii) If the operations are to test. for, monitor, clean up, remove, contain, treat, detoxify or neutralize, or
in anyway respond to, or assess the effects of pollutants.
Subparagraphs (a) and (c)(i) do not apply to "bodily injury" or "property damage" arising out of heat, smoke
or fumes from a hostile fire.
As used. in this Exclusion, a hostile fire means one which becomes uncontrollable or breaks out from where
it was intended to be.
(2) Any loss, cost or expense arising out of any:
(a) Request, demand. or order that any insured or others test for, monitor, clean up, remove, contain, treat,
detoxify o.~ ti~utralize, or in any way respond to, or assess the effects of~pollutants; or
(b) Claim or "suit" by or on beha]f of a governmental authority for damages because of testing for,
monitoring, cleaning up, removing, containing, treating, detoxifying or neutralizing; or in any way
responding to, or assessing the effects of pollutants.
Pollutants means any solid, liquid, gaseous, or thermal irritant or contaminant, including smoke, vapor, soot,
fumes, acids, alkalis, chemicals and waste. Waste includes materials to be recycled, reconditioned or
reclaimed.
g. "Bodily injury" or "property damage" arising out of the ownership, maintenance, use or entrustment to others of
any aircraft, "auto" or watercraft owned or operated. by or rented or loaned to any insured. Use includes operation
and "loading or unloading."
This Exclusion does not apply to:
(1) A watercraft while ashore on premises you own or rent;
(2) A watercraft you do not own that is:
(a) Less than 26 feet long; and
(b) Not being used to carry persons or property for a charge;
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CUSTOMIZID ASSET PROTECTION POLICY
(3) Parking an "auto" on, or on the ways next to, premises you own or rent, provided the "auto" is not owned by
or rented or loaned to you or the insured;
(4) Liability assumed under any "insured contract" for the ownership, maintenance or use of aircraft or watercraft;
or -
".Bodily. injury" or "property damage" arising out of the operation of any of the following equipment:
(a) .Cherry. pickers and similar devices mounted on automobile or truck chassis and used to raise or lower
-workers; and
(b) Air compressors, pumps and generators, including spraying, welding, building cleaning, geophysical
. exploration, lighting and well servicing equipment.
h. "Bodily injury" or "properly 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 or preparation for, a prearranged racing, speed or
demolition contest or in any stunting activity.
i. "Bodily injury" or "property damage" due to war, whether or not declared, or any act or condition incident to war.
War includes civil war, insurrection, rebellion or revolution. This Exclusion applies only to liability assumed under
a contract or agreement.
j. "Bodily injury," "property damage," "personal injury." or "advertising injury" due to rendering or failure to render
any professional service;:.. This includes but is not limited to:
~_ti -
(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 or treatment;
Any health service or treatment;
Any cosmetic or tonsorial service or treatment;
('n Optometry or optical or hearing aid services including the prescribing, preparation, fitting, demonstration or
distribution of ophthalmic lenses and simi]ar products or hearing aid devices;
(8) Ear piercing services; and
(9) Services. in the pr_ctice of pharmacy; but this Exclusion does not apply to an insured whose operations include
those of a retail drugstore.
k. "Property damage" to:
n.nn nn~ •+n .nom. ~ T_~.. C .L 1!~
CUSTOMIZED ASSET .PROTECTION POLICY
(1) Property you own, rent or occupy;
(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
That particular part of any property that must be restored, repaired or replaced because "your work" was
incorrectly performed on it.
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 "produce-completed operations
hazard."
i. "Property damage" to `'your product" arising out of it or any part of it.
m. "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.
ti
n. "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. 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.
tiPP ooz <io/9z~ Page 6 of'19
CUSTOMIZID .ASSET PROTECTION POLICY
p. "Bodily injury" or "personal injury" arising out of any:
(Z) Refusal. to employ;
(2) Temunation of employment;
(3) Coercion, demotion, evaluation, reassignment, discipline, defamation, harassment, humiliation, discrimination,
or other employment-related practices, policies, acts or onussions; or
(4) Consequential "bodily injury" or "personal injury" as a result of (1)-through (3) above.
This Exclusion applies whether the insured may be held liable as an employer or in.any other capacity and to any
obligation to share damages with or to repay someone else who must pay damages because of the injury.
q. "Personal injury" or "advertising injury:"
(1) Arising out of oral or written publication of material, if done by or at the direction. of the insured with
knowledge of its falsity;
(2) Arising out of oral or written publication of material whose first publication took place before the beginning
of the policy period;
(3) Arising out of the wilIftil violation of a penal statute or ordinance committed by or with the consent of the
insured; or
(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.
r. "Advertising injury" arising out of:
(1) Breach of contract other than misappropriation of advertising ideas under an implied contract;
(2) The failure of goods, products or services to conform with advertised quality or performance;
(3) The wrong description of the price of goods, products or services; or
(4) An offense committed by an insured whose business is advertising, broadcasting, publishing, telecasting or the
practice of-law.
Exclusions c., d., e., f., g., h., i., k., 1., m., n. and o. do not apply to damage by fue or explosion to premises
rented to you; A separate Limit of Insurance applies to this coverage as described in Section D., Limits of
Insurance.
2. Applicable to Medical Expenses Coverage - We will not pay expenses for "bodily. injury:"
a. To any insured.
b. To a person hired to do work for or on behalf of any insured or a tenant of any insured.
c. To a person injured on that part of premises you own or rent that the person normally occupies.
d_ To a person, whether or not an employee of any insured, if benefits for the "bodily injury" are payable or must be
cnPP ooz c~oi9z> Page 7 of 19
- CUSTOMIZED ASSET PROTECTION POLICY
. ,
provided under a workers' compensation or disability benefits law or a similar law.
e. To a person injured while taking part in athletics.
f. Included within the "products-completed operations hazard." -
g. Excluded under Business Liability Coverage. ,
h. Due to war, whether or not declared, or any act or condition incident to war..War includes civil war, insurrection,
rebellion or revolution.
3. Applicable fo both Business Liability Coverage and 1V1!edical Expenses Coverage -Nuclear Energy Liability
Exclusion..
This insurance does not apply:
a. Under Business Liability Coverage, to "bodily injury" or "property damage:"
(1) With respect to which an insured under the policy is also :gin insured under a nuclear energy liability policy
issued by Nuclear Energy Liability Insurance Association, Mutual Atomic Energy Liability Underwriters or
Nuclear Insurance Association of Canada, or would be an insured under any such policy .but for its termination
upon exhaustion of its Limit of liability;
(2) Resulting from the "hazardous properties" of "nuclear material" and-with respect to which:
(a) Any person or organization is required to maintain financial protection pursuant to the Atomic Energy Act
of 1954, or any law amendatory thereof; or
(b) The insured is, or had this policy not been issued would be, entitled to indemnity from the United States
of America, o~any agency thereof, under any agreement entered into by the United States of America,
or any agency thereof, with any person or organization.
b. Under Medical Expenses Coverage, to expenses incurred with respect to "bodily injury" resulting from the
"hazardous properties" of "nuclear material" and arising out of the operation of a "nuclear facility" by any person
or organization.
c. Under Business Liability Coverage, to "bodily .injury" or "property damage" resulting from the "hazardous
properties" of the "nuclear material,." if:
(1) The "nuclear material:"
(a) Is at any "nuclear facility" owned by, or operated by or on behalf of, an insured; or
(b) Has been discharged or dispersed therefrom;
(2) The "nuclear material" is contained in "spent fuel" or "waste" at any time possessed, handled, used, processed,
stored, transported or disposed of by or on behalf of an insured; or
(3) The "bodily injury" or "property damage" arises out of the furnishing by an insured of services, materials, parts
or equipment in connection with the planning, construction, maintenance, operation or use of any "nuclear
facility," but if such facility is located within the United States of America, its territories or possessions or
Canada, this exclusion (3) applies only to "property damage" to such "nuclear facility" and any property
LAPP ooz cioi9z~ Page 8 of 19
CUSTOMIZED P.SSET PROTECTION POLICY
thereat.
As used in this Exclusion:
"byproduct material" has the meaning given. it in the Atomic Energy Act of 1954 or in any law amendatory
thereof;
"hazardous properties" include radioactive, toxic or explosive properties;
"nuclear facility" means:
(a) Any "nuclear reactor;"
(b) Any equipment or device designed or used for:
(1) Separating the isotopes of uranium or plutonium;
(2) Processing or utilizing "spent fuel;" or.
(3) Handling, processing or packaging "waste;"
(c) Any equipment or device used for the processing, fabricating or alloying of special. "nuclear material" if
at any time the total amount of such material in the custody of the insured at the premises where such
equipment or device. is located consists of or contains more than 25 grams of plutonium_or uranium 233
or any combination thereof or more than 250 grams of uranium 235;
(d) Any structure, basin, excavation, premises or place prepared or used for the storage or disposal of
"waste, "
z"
and includes the site on which any of the foregoing is located, all operations conducted on such site and all
premises used for such operations;
"nuclear material" means "source material," "special nuclear material" or "byproduct material;"
"nuclear reactor" means any apparatus designed or used to sustain nuclear fission in aself-supporting chain
reaction or to contain a critical mass of fissionable material;
"property damage" includes all forms of radioactive contamination of property;
"source material" has. the meaning given it in the Atomic Energy Act of 1954 or in any law amendatory
thereof;
"special nuclear material" has the meaning given it in the Atomic Energy Act of 1954 or in any law amendatory
thereof;
"spent fuel" means any fuel element or fuel component, solid or liquid, which has been used or exposed to
radiation in a "nuclear reactor;"
"waste" means any waste material:
(a) Containing "by-product material" other than. the tailings or wastes produced by the extraction or
concentration of hranium or thorium from any ore processed primarily for its "source material" content;
cAPP ooz cioi9z~ Pale 9 of 19
CUSTOMIZED ASSET PROTECTION POLICY
and
(b) Resulting from the operation by any person or organization of any "nuclear facility" included unde,
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. An organization other than a partnership or joint venture, 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.
2. Each of the following is also an insured:
a. Your employees, otherthan your executive officers, but only for acts within the scope of their employment by you.
However, no employee is an insured for;
(1) "Bodily injury" or "personal injury" to you or to a co-employee while in the course of his or her employment,
or to the spouse, child, parent, brother or sister of that co-employee as a consequence of such "bodily injury"
or "personal injury" or for any obligation to share damages with or repay someone else who must pay damages
because of the "injury;"
(2) "Bodily injury'~o~--"personal injury" arising out of his or her providing or failing to provide professional health
care services; or
(3) "Property damage" to property owned or occupied by or rented or loaned to that employee, any of your other
employees, or any of your partners or members (if you are a partnership or joint venture).
b. Any person (other than your employee) or any organization while acting as your real estate manager.
c. Any person or organization having proper temporary custody of your property if you die, but only:
(1) With respect to liability arising out of the maintenance or use of that property; and
(2) Until your legal representative has been appointed.
d. Your legal representative if you die, but only with respect to duties as such. That representative will have all your
rights and duties under this policy.
3. If shown in the Schedule of Additional Insureds (and subject to the conditions listed in that schedule), each of the
following is also an insured:
a. The person or organization shown in the Schedule or in the Declarations, but only for their liability arising out of:
(1) Their financial control of you; or
-APP 002 cioi92> Page 10 of 19
CUSTOMIZED ASSET PROTECTION POLICY
(2) Premises they own, maintain or control while you lease or occupy those premises.
This insurance does not apply to structural alterations, new construction and demolition operations performed by
or for that person or organization.
b. Any state or political subdivision, but only with respect to the following hazards for which the state or political
subdivision has issued a permit in connection with premises you own, rent or control and to which this insurance
applies:
(1) The existence, maintenance,- repair, construction, erection or removal of advertising signs, awnings, canopies,
cellar entrances, coal holes, driveways, .manholes, marquees, hoistaway .openings, sidewalk vaults, .street
banners or decoration and similar exposures;
(2) The construction, erection or removal. of elevators; or -
(3) The ownership, maintenance or use of any elevators covered by this insurance.
c. Mortgagees, assignees and receivers, but only with respect to their liability aS such which arises out ofthe
ownership, maintenance or use by you of the premises to which this insurance applies.
This insurance does not apply to structural alterations, new construction and demolition operations performed by
or for that person or organization.
d. Any architect, engineer or surveyor engaged by you is also an insured, but only with respect to liability arising out
of your premises or "your work."
The insurance with respect to such architects, engineers or surveyors does not apply to "bodily injury," "property
damage," "personal injury," or "advertising injury" arising out of the rendering of or the failure to render any
professional services Eby pi for you, including: -
(1) The preparing, approving or failing to prepare or approve maps, drawings, opinions, reports, surveys, change
orders, designs or specifications; and
(2) Supervisory, inspection or engineering services.
e. Any person or organization who is a vendor of your products.
f. Any person or organization who leases equipment to you, .but only. with respect to liability. arising out of the
maintenance, operation or use by you of equipment leased to you by that person or organization subject to the
following additional exclusions:
This insurance does not apply to:
(1) .Any "occurrence" which takes place after the equipment lease expires; or
(2) "Bodily injury" or "property damage" arising out of the sole negligence of the person or organization who
leased the equipment to you.
g. Any person or organization who has granted you a franchise, but only with respect to their liability arising from
such granting of a franchise to you.
4. With respect to "mobile equifinent" registered in your name under any motor vehicle registration law, any person is
cape ooz cioi92> ~ Paoe I1 of 19
CUSTOMIZL'.D ASSET PROTECTION POLICY
an insured while driving such. equipment along a public highway with your permission. Any other person or
organization responsible for the conduct of such person is also an insured, but only with respect to liability arising .out
of the operation of the equipment, and only if no other insurance of any kind is available to that person or organization
for this liability. However, no person or organization is an insured with respect to:
a. "Bodily injury" to a co-employee of the person driving_the equipment; or
b. "Property damage" to property owned by, rented to, in the charge of or occupied by you or the employer of any
person who is an insured under this provision.
No person or organization is an insured with respect to the conduct of any current or past partnership or joint venture
that is not shown as a Named Insured in the Declarations.
D. LIABILITY Al~'D MFjDICAL EXPENSES LIMITS OF Il~'SURANCE
1. The: Limits of Insurance 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 injury" 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 premises rented
to you arising out of any one fire or explosion is the Fire Legal Liability Limit shown in the Declarations.
4. Aggregate Limits
The most we will pay for:
a. Injury or damage under the "products-completed operations hazard" arising from all "occurrences" during the policy
period is the Liability and Medical Expenses Limit; and
b. All other injury or damage, including medical expenses, arising from all.. "occurrences" during the policy period is
twice the Liability and Medical Expenses Limit. Tnis limitation does not apply to "property damage" to premises
rented to you arising out of fire or explosion.
The limits of this policy 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.
ctiaP ooz cioi9z~ Page 12 of 19
CUSTOMIZED- ASSET PROTECTION POLICY
E. LIABILITI' AND A~DICAL EXPENSES GENERAL CONDITIONS
1. Bankruptcy
Bankruptcy or insolvency of the insured or the insured's estate will not relieve us of our obligations under this polc}
2. Duties In The Event Of Occurrence, 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 resul
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) Immediately send._us copies of any demands, notices, summonses or legal papers received in connection with
the claim ~or 'i~uit;"
(2) Authorize us to obtain records and other information;
(3) Cooperate with us in the investigation, settlement or defense of the claim or "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 insureds will, except at their own cost, voluntarily make a payment, assume any obligation, or incur any
expense, other than for first aid, without our consent.
3. 1~~nancial Responsibility Laws
a. When this policy. is certified as proof of financial. responsibility for the future under the provisions of any motor
vehicle financial responsibility law, the insurance provided by the policy for "bodily injury" liability will comply
with the provisions of the law to the extent of the coverage and limits of insurance required by that-law.
b. With .respect to "mobile equipment" to which this insurance applies, we will provide any liability, uninsured
motorists, underinsured motorists, no-fault or other coverage required by any motor vehicle law. We will provide
the required limits for those coverages.
LAPP ooz cioi9z> ~ Page 13 of 19
CUSTOMIZED ASSET PROTECTION POLICY
4. 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 Coverage Part unless all of its-terms have been fully complied.with.
A person or organization may sue us to recover: on an agreed settlement ar on a final judgment against an insured
obtained after an actual trial; 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 byus, the insured and the claimant or the claimant's legal representative.
5. Separation of Insureds
Except with .respect to the Limits of Insurance, 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 AIVD MEDICAL EXPENSES DEFII\fiTIONS
1. "Advertising. Injury" means injury arising out of one or more of the following offenses:
a. Oral or written publication of material that slanders or libels a person or organization or disparages a person's or
organization's goods, products. or services;
b. Oral or written pul5lic~tioi of material that violates a person's right of .privacy;
c. Misappropriation of advertising ideas or style. of doing business; or
d. Infringement of copyright, title or slogan.
2. "Auto" means a land motor vehicle, trailer of semitrailer designed for travel on public roads,. including any attached
machinery or equipment. But "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, provided the injury or damage does not occur in the course of travel or
transportation to or from any place not included in a. above; or
c. All parts of the world if:
Cl) The injury or damage arises out of:
APP ooz ctoi9z> Page 14 of 19
- - - - - CUSTOMIZED ASSET PROTECTION POLICY
(a) .Goods or products made or sold by you in the territory described in a. above; or
(b) The activities of a person whose home is in the territory described. in a. above, but is away for a short time
on your business; and
(2) The insured's responsibility to pay damages is determined in a "suit" on the merits in the territory described
in a. above or in a settlement we agree to.
5. "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
b. You have failed to fulfill. the terms of a contract or agreement;
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.
6. a. "Insured Contract" means:
(X) A Iease of premises;
(2) A sidetrack agreement;
(3) Any easement or,license agreement, except in connection with construction or demolition operations on or
within 50 feet `of a~railroad;
(4) An obligation, as required by ordinance,: to indemnify a municipality, except in connection with work for a
municipality;
(5~ -An .elevator maintenance agreement;
.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 beimposed by law in the absence of any contract or agreement.
b. An "insured contract' does not include that part of any contract or agreement:
(1) That indemnifies any person or organization 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, road beds, 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
cAPP ooz c~o>9z> Page 15 of 19
CUSTOMIZED ASSET PROTECTION POLICY ~ '
(b) .Giving directions or instructions, or railing to give them,. if that is the primary cause of the injury or,
damage;
(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 (2) above and
supervisory, inspection or engineering services; or
(4) That indemnifies any person or organization for damage by fire or explosion to premises rented or loaned to
you.
7. "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 _'s 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."
8. "l~Zobile .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~,e~f-propelled or not, on which are permanently mounted:
(1) Power cranes,. shovels, loaders, digeers or drills; or
(2) Road construction or resurfacing equipment such as graders, scrapers or rollers;
e. Vehicles not described in 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 notdescribed in a, b, c, or d. above. maintained primarily for 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:
c„Pa ooz ~ i oi9z ~ Page 16 of 19
CUSTOMIZED ASSET PROTECTION POLICY
(a) Snow removal;
(b) Road maintenance, but not construction or resurfacing;
(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.
9. "Occurrence" means an accident, including continuous or repeated exposure to substantially the same general harmful
conditions.-
. 10. "Personal Injury" means injury, other than "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, by or on behalf of its owner, landlord or lessor;
d. Oral or written publication of material that slanders or libels a person or organization or disparages a person's or
organization's goods, products or services; or
e. Oral or written publication of material that violates a person's right of privacy.
11. a. "Products -Completed Operations Hazard" includes all "bodily injury" and' "property damage" 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.
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. "Your work" will be deemed completed at the earliest of the following times:
(1) When all of the work called for in your contract has been completed.
(2) -When all of the work to be done at the site has: been completed if your- contract calls for work at more than
one site.
(3) When that part of the. work done at a job site has been put to its intended use by any 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.
cnPP ooz ctoi9z> Page 17 of 19
CUSTOMIZED ASSET PROTECTION POLICY ~ ~ ,
• ,
c. This hazard 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 created
by the "loading or unloading" of it; or
(2) The existence of tools, uninstalled equipment or abandoned or unused materials.
12. "Property Damage" means:
a. Physical .injury to tangible property including all resulting loss of use of that property. All such loss of use shall
be deemed to occur at the time of the physical injury that .caused it; or
b. Loss of use of tangible property that is not physically injured. All such loss of use shall be deemed to occur at the
time of the "occurrence" that caused it.
13. "Suit" means a civil proceeding in which damages because of "bodily injury," "property damage," "personal injury"
or "advertising injury" to which this insurance applies are alleged. "Suit" includes:
a. An arbitration proceeding in which such damages are claimed.
b. Any other alternative dispute resolution proceeding in which such damages are claimed and to which you submit
with our consent.
14. a. "Your. Product" means:
(1) Any goods or products, other than real property, manufactured, sold, handled, distributed or disposed of by:
(a) You;
(b) Others"tiading 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. "Your Product" 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.
"Your Product" does not include vending machines or other property rented to or located for the use of others but
not sold.
15. a. "Your Work" 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.
LAPP ooz cioi9z> Page 18 of 19
CUSTOMIZED ASSET PROTECTION POLICY
b, "Your Work" includes:
(1) Warranties or representations made at any time with respect. to the fitness quality, durability, performance ~
use of "your work;" and '
(2) The providing of or failure to provide warnings or instructions.
CAPP 002 (10/92) _ .
Page 19 of 19
CUSTOMIZED ASSET PROTECTION POLICY
RADIOACTIVE MATTER EXCLUSION
This Exclusion modifies insurance provided under the Commercial Liability Coverage Form.
The following is added to Section B., EXCLUSIONS:
This insurance does not apply to "bodily injury," "property damage," "advertisin in u " or " "
the actual, alleged or threatened exposure of person(s) or property to any radioacri a matter, personal injury arising from
'.~I>I~ I17 noi~~~l THE NEW ~--iAMPSHIItE
acr F of I ~c--\' w~ ~ ~
e I lampshire Insur:uice Company. 1 )9'_ n Me,nDCr eomu~ny or
Arty scan in~e ma!~onai G~ouo. inc
In:ur:m~r From thr u- Ilamn~hirc In<uranri("omn:~o~~ ~~~„i ~.~ti.,....._.~. -
CUSTOMIZED ASSET PROTECTION POLICY
ASBESTOS LIABILITY EXCLUSION
This exclusion modifies insurance provided under the Commerical Liability Coverage Form.
The following is added to the Exclusions, Section B. of the Commeraal Liability Coverage Form:
This insurance does not apply to "bodily injury"..including sickness, disease, occupational disease, disability, shock, death,
mental anguish and mental injury; "property damage;" "personal injury" or "advertising injury" arising at any time out of the
manufacture of, mining of, use of, sales of, installation of, removal of, distribution of or exposure to asbestos, asbestos products,
asbestos fibers or asbestos dust, or to any obligation of any insured to indemnify- any party because of damages arising out of
such "property damage," "bodily injury," "personal injury" or "advertising injury" at any time as a result of the manufacture of,
mining of, use of, sales of, installation of, removal of, distribution of, or exposure to asbestos, asbestos products, asbestos fibers
or asbestos dust.
We are not obligated to defend any "suit" or claim against any insured alleging "bodily injury," `'property damage," "personal
injury" or "advertising .injury" and seeking damages, if such "suit" or claim arises from "bodily injury," "property damage,"
"personal injury" or "advertising injury" resulting from or contributed to, by any and all manufacture of, mining of, use of, sales
of, installation of, removal of, distribution of or exposure to asbestos, asbestos products, asbestos fibers or asbestos dust
LAPP ,zo c,oi9z> ~ THE N>r~~' H.~,~tr~H~itF
Pace 1 of 1
..\i~~ Il.,mh.hirr Ih. ranci 1.~~~mh,in` _ c~a~ ~i~c -
CUSTOMIZED ASSET PROTECTION POLICY
CALIFORNIA CHANGES -CANCELLATION
AND NONRENEWAL
lis endorsement modifies insurance provided under the Customized Asset Protection Policy.
The following is added to the CANCELLATION Common Policy Condition:
7. 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.
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
ii. Threaten our solvency.
e Neu fiampshire Insurance Company,: 1992
P 112 (9/92) (includes copyrighted ~raterial from Insurance Services Office, Inc.
e 1 of 2 with its permission.
Copyright, Insurance Service Office, Inc., 1987, 1988) THE NEW HA~11'SHIItE
/'9~ 1, rn«.,v..•r Cor..rarn of
CUSTOMIZED ASSET PROTECTION POLICY
('n 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, and to the producer of record, at least:
(1) 10-days before the effective date of cancellation if we cancel for a reason listed in paragraph 7.a.(1) or (2).
(2) 30 days before the effective date of cancellation if we cancel for any other reason listed in paragraph 7.a.
B. The following is .added to the Common Policy Conditions and supersedes any provisions to the contrary:
L. NONRENEWAL
L If we decide 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:
a. 45 days, but not more than 1.20 days, before the expiration or anniversary date, if the aggregate policy premium
is more than $10,000; or
b. 60 days, but not more than 120 days, before the expiration or anniversary date, if the aggregate policy premium
is $10,000 or less._ _g
2. 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.
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 L.l.
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.
f. If we .have. made a written offer to the first .Named Insured, in accordance with the timeframes shown in
paragraph L.1, to renew the policy under changed terms or conditions or at an increased premium rate, when
the increase exceeds 259b.
crrP iiz c9i9z~ Page 2 of 2
CUSTOMIZID ASSET PROTECTION POLICY
' PROPERTY 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 policy 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.
Other words and phrases. that appear in quotation marks have special meaning. Refer to SECTION H -PROPERTY
DEFINITIONS.
A. COVERAGE
We will pay 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, as used in this policy, means the following types of property for which a Limit of Insurance is
shown in the Declarations:
a. Buildings, meaning the buildings and structures at the premises described in the Declarations, including:
{1) Completed additions;
(2) Permanently installed fixtures, machinery and equipment;
(3) Your Personal Property in apartments or rooms furnished by you as landlord;
(4) Outdoor f~xture~ -
Personal Property owned by you that is used to maintain or service the buildings or structures or the
premises, iucluriing:
(a) Fire extinguishing equipment;
(b) Outdoor furniture;
(c) Floor coverings; and
(cn Appliances used for refrigerating, ventilating, cooking, dishwashing or laundering.
If not covered by other insurance:
(a) Additions under construction, alterations and repairs to the buildings or structures;
New Hampshire Insurance Company. 1991
(Includes copyrightzd matzrial from Insurancz Services Officzs. Inc.. Ti 1L NEw Hf~~r~sH~RE
(~,11'Ytlgl (IO/J?) wiihits rnussion.
P",'`~ 1 "f Cop}Ti~ht. Insurance Szrvi~ce Office, Inc.. 198x, ]988) A Mpmiu~rGx*+pJnY ~~f
art,. n .an im.: m:nin~+.v G.oup. ~ c.
Insurance from thz Nzw Hampshire Insurance Company. and other memlxr compaiuzs of thz l~'ew Hampshire Insurance (inam
CUSTOMIZED ASSET PROTECTION POLICY
(b) .Materials, equipment, supplies and temporary structures, om or within 1000 feet of the describe
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
vehicle) within 1000 feet of the described Dremises, including:
(1) Personal Property you own that is used in your business;
(2) Personal Property of others that is th your care, custody or control, but this property is not covered foi
more: than the .amount for which you.. are legally liable, plus the cost of labor, materials or service.
furnished or arranged by you on Personal Property of others. However, our payment for loss of o~
damage to Personal Property of others will only be -for the. account of the owner of the property; and
(3) Tenant's improvements and betterments. Improvements and betterments are fixtures, alterations.
installations or additior~:
(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 lega]Iy remove.
2. Property Not Covered
Covered Property does not include:
a: Aircraft, automobiles, motomucks and other vehicles subject to motor vehicle registration;
b. Bullion,. money or securities;
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;
e. Outdoor fences, rad~c or teievisior, antennas, including their lead-in wiring, masts or towers, signs (other than
signs attached to buLdings), trees, shr,~bs cr plants, all except as provided in the:
(1) Outdoor Property Coverage Extension; or
(2) Outdoor Signs Optional Coverage;
f. Watercraft (including motors, equipr_~ent and accessories) while afloat;
g. Live animals, birds, er fish, unless held for sale.
3. Covered Causes of Loss
RISKS OF DIRECT PHYSICAi., LOSS unless the less is:
a. Excluded in Section B, Exclusions; or
b. Limited in Paragraph A.4., i.i:ritatons, t?;2t follows.
LAPP 001 cioi9z~ Page 2 of 29
CUSTOMIZED ASSET PROTECTION POLICY
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.
(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, but there is no physical evidence to show what happened to it, such as shortage
disclosed on taking inventory.
(4) Property that has been transferred to a person or to a place outside the described premises on the basis of
unauthorized instructions.
b. We will not pay more for loss of or damage to glass that is part of a building or structure than $100 for each
plate, pane, multiple plate insulating unit, radiant or solar heating panel, jalousie, .louver or shutter. We will
not pay more than $500 for all loss of or damage to building glass that- occurs at any one time.
This Limitation does. not apply to loss or damage. by the "specified causes of loss" except vandalism.
c. We will not pay for loss of or damage to fragile articles such as glassware, statuary, if broken, unless caused
by the "specified causes of loss" or building-glass breakage. This restriction does not apply to:
(1) Glass that is part of a building or structure;
(2) Container of:pr~perty held for sale; or
(3) Photographic or scientific instrument lenses.
d. 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 semi-precious stones, bullion,
gold, silver, platinum and other precious alloys or metals: This Limit does not apply to jewelry and
watches worth $l00 or less per item.
5. Additional Coverages
a. Debris Removal
(1) VJe will pay your expenses 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 earlier of:
(a) The date of direct physical loss or damage; or
(b) The end of the policy period.
LAPP Oo1 c~oi9z~ ~ Pale 3 of 29
CUSTOMIZED ASSET PROTECTION POLICY _
(2) The most we will pay under this Additional Coverage is 25 % o£ '
(a) The amount we pay. for the direct physical loss of or damage to Covered Property; .plus
(b) The Deductible in this policy applicable. to that Ioss or damage.
But this limitation does not apply to any additional debris removal limit provided in paragraph (4) below.
(3) This Additional Coverage-does not apply to costs to:
(a) Extract "pollutants" from land or water; or
(b) Remove, restore or replace polluted. land or water.
(4) If:
(a) The sum of direct physical loss or damage and debris removal expense exceeds the Limit of Insurance;
or
(b) .The debris removal expense exceeds the amount payable under the 25% Debris Removal coverage
limitation in paragraph (2) above.
We will-pay up to an additional $5,000 for each location in any one occurrence under the Debris Removal
Additional Coverage.
b. Preservation of Progeny
If it is necessary to move Covered Property from the described premises to preserve it from loss or damage b.~
a Covered Cause of. Loss,. we will pay for any direct physical loss or damage to that property:
(1) While it is being moved or while temporarily stored at another location; and
(2) Only if the loss or damage occurs within 10 days after the property is first moved.
c. ire Department Service Charge
When the fire department is called to save or protect Covered Property from a Covered Cause of Loss, we will.
pay up to $2,500 for your liability for fire department service charges:
(1) Assumed by contract or agreement prior to loss; or
(2) Required by local ordinance. ` .
d. Collapse
We will pay for loss or damage caused by or resulting from risks of direct physical loss involving collapse of
a building or any part of a building caused only by one or more of the following:
(1) The "specified causes of loss" or breakage of building glass, all only as insured against in this policy;
(2) Hidden decay;
(3) Hidden insect or vermin damage;
CAPP 001 cioi9z~ Page 4 of 29
CUSTOMIZED ASSET PROTECTION POLICY
(4) Weight of people or personal property;
Weight of rain that collects on a roof;
Use of defective :material or .methods in construction,. remodeling or renovation if the collapse occurs
during the course of the construction, remodeling or renovation.
We will not. pay for loss of or damage to the following types of property, if otherwise covered in this. policy,
under items (2), (3), (4), (5) and (6) unless the loss or damage is a direct result of the. collapse of a building:
Awnings; gutters and downspouts; yard fixtures; outdoor swimming pools; piers, wharfs and docks; beach
or diving platforms or appurtenances; retaining walls; walks, roadways and other paved surfaces.
Collapse does not include. settling, cracking, shrinkage, bulging expansion, or decomposition of building
materials.
e. Water DaIIlage, Other Liquids, Powder or Molten Material Damage
If loss or damage caused by or resulting from covered water or other liquid, powder or molten material damage
occurs, we will also pay the cost to tear out and replace any part of the building or structure to repair damage
. to the system or appliance from which the water or other substance escapes.
We will not pay the cost to repair any defect that caused. the loss or damage; but we will pay the cost toxepair
or replace damaged parts of fire extinguishing equipment if the damage:
(1) Results in discharge of any substance from an automatic fire protection system; or
(2) IS directly caused by freezing.
f. Business Income.:
We will pay for the actual loss of Business Income you sustain due to the necessary suspension of your
"operations" during t:he "period of restoration." The suspension must be caused by direct physical loss of or
damage to property at the described premises, including Personal Property in the open (or in a vehicle) within
.1000 feet, caused by or resulting from any Covered Cause of Loss.
We will only pay for loss of Business Income 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.
Business Income means the:
(1) Net Income (Net Profit or Loss .before income taxes) that would have been earned or incurred; and
(2) Continuing normal operating expense incurred, including payroll.
g. tetra Expense
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, including
Personal Property in the open (or in a vehicle) within 1000 feet,. caused by or resulting from a Covered Cause
of Loss.
LAPP 001 t~oi9z> Page 5 of 29
CUSTOMIZED ASSET PROTECTION POLICY ,
Extra Expense means expense incurred:
(1) To avoid or minimise the suspension of business and to continue "operations:"
(a) At the described premises; or
(b) At replacement premises or at temporary locations, including:
(i) Relocation expenses; and
(ii) Costs to equip and operate the replacement or temporary locations.
(2) To minimize the suspension of business if you cannot continue "operations."
(3) (a) To repair, replace or restore any property; or
(b) To research,. replace or restore the lost information on damaged valuable papers and records;
to the extent it reduces the amount of the loss that otherwise would have been payable under this Additional
Coverage or Additional Coverage f., Business Income.
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.
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 dining the policy period. The expenses will. be paid only if they are reported to us in
writing within.:~8~_ days of the earlier of:
(1) The date of direct physical loss or damage; or
(2) The end of the policy period.
The most we will pay. for each location under the Additional Coverage is 510,000 for the sum of all such
expenses arising out of Covered Causes of Loss occurring during each separate 12 month period of this policy.
No Deductible applies to this Additional Coverage.
6. Coverage F~ctensions
In addition w the Limits of Insurance, 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 1000 feet of the described premises.
a. Ir'ewly Acquired or Constructed Property
(1) You may extend the insurance that applies to Building to-apply to:
(a) Your new buildings while being built on the described premises; and
(b) Buildings yo•~ acquire at locations, other than. the described premises, intended for:
Page 6 of 29
CAPD nn~ r~oio~~
• CUSTOMIZED ASSET PROTECTION POLICY -
C) Similar use as the buildings described in the Declarations; or
(ii) Use as a warehouse.
The most we will pay for loss or damage under this Extension is an amount equal to 25% of the Building.
Limit shown in the Declarations.
(2) You may extend the insurance that applies to Business Personal Property to apply to that property at any
premises you acquire.
The most we will pay for loss or damage under this Extension is $250,000. at each premises.
(3) Insurance under this Extension for each newly acquired premises will end when any of the following first
occurs:
(a) This policy expires;
(b) 90 days expire after you acquire or begin construction at the new premises; or'
(c) You report values to us.
We will charge you additional premium for values reported from the date you. acquire the premises.
b. Property Off Premises
You may extend the insurance .that applies to Building and Business Personal Property to apply to covered
Building and Business Personal Property, while it is temporarily at a premises you do not own, lease or operate.
This Extension does not apply to covered property while in _or on a vehicle.. The most we will pay for loss or
damage under this Extension is $25,000, but not more than the combined limits of Buildings and Business
Personal Property Coverage for the covered location.
This Extension of Coverage does not apply to:
(1) Property that is rented or leased to others; or
(2) Samples and other property in the care, custody or control of sales personnel .
c. Outdoor Property
You may extend the insurance provided by this policy to apply to your outdoor fences, .radio and. television
antennas, satellite dishes, signs (other than signs attached to buildings), trees, shrubs and plants, including debris
removal expense, caused by or resulting from any of the following causes of loss:
(1) Fire;
(2) Lightning;
(3) Explosion;
(4) Riot or Civil Commotion; or
(5~ Aircraft.
reoc nnr r~nio>> Page 7 nf29
CUSTOMIZID ASSET PROTECTION POLICY
The most we will pay for loss or damage under this Extension is $2,500 in any one occurrence. This coverage
does not apply to trees, shrubs and plants which are grown commercially.
d. Valuable Papers and Records -Cost of Research
You may extend the insurance that applies to Business Personal Property to apply to your costs to research
replace or restore the lost information on lost or damaged valuable papers and records, including those whicl
exist on electronic or magnetic media,- for which duplicates do not exist. The most we will pay under thi:
Extension is $10,(?00 at each described premises.
e. Property in Transit
You may extend the insurance that applies to your Business Personal Property to apply to property while ir.
transit within the continental United States, Alaska, Hawaii, Puerto Rico, or Canada, or between these places.
This Extension does not apply to property that is otherwise covered for transit, or to property of others that you
are responsible for as a carrier for hire, as a shipper or hauler. Nor does it apply to property once it is in the
care of the United States Postal Service. The most we will pay under this Extension is $25,000.
f. Accounts Receivable.Coverage
You may extend the insurance that applies to your Business Personal. Property to apply to your accounts
receivable records.
We will pay:
(1) All amounts due from your customers that you are unable to collect;
(2) .Interest charges on any loans required to offset amounts you are unable to collect pending our payment of
these amounts;
(3) Reasonal~ie~irollection expenses in excess of your normal collection expenses that are made necessary by
the loss; and
(4) Other reasonable expenses that you incur to re-establish your records of accounts receivable.
The most we will pay under this Extension is $10,000 at each described premises.
g. Computer Equipment Coverage
You may extend the. insurance that applies to :your Business Personal Property to apply to "computer
equipment," "media," "data" and "programs" which you own, lease or rent from others,. or for which you are
legally responsible.
We will pay the replacement cost to reproduce data or programs that are lost or accidentally erased, including
documentation and source materials,'if you actually replace or .reproduce them.
The most we will pay under this Extension is $10,000 unless a higher Limit is specifically shown on the
Declarations page.
h. Personal Effects
You may extend the insurance that applies to your Business Personal Property to apply to Personal .Effects
owned by you, your officers, your partners. or your employees. This Extension does not apply to loss or
caPP ooi cioi9z> Page 8 of 29
• - CUSTOMIZED ASSET PROTECTION POLICY
damage by theft.
The most we will pay under this Extension is 52,500.
i. Money and. Securities Coverage
We will pay for Ions of money and. securities used in your business .while at a bank or savings institution, within
.your living quarters or the Iiving 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.. .
In addition to the Limitations and Exclusions applicable to property coverage, 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.
The most we will pay for loss in any one occurrence is the following, unless higher Limits are shown in the
Declarations:
(1) 510,000 for money and_ securities. while:.
. ~ "
(a) In or on the described premises: or
(b) Within a yank or savings institution; and
(2) 52,000 for money and securities while anywhere else.
All loss:
(1) Caused by one or more persons; or
(2) Invoh~ing a single act or series. of related acts;
is considered one occurrence.
You must keep records of all money and securities so we can verify the amount of any loss or damage.
B. EXCLUSIONS
1. We will not pay for loss or damage caused duectly or indirectly by any of the following. Such loss or damage is
excluded regardless of any other cause.. or event that contributes concurrently or in any sequence to the loss.
D~.,o O ,.f 70
CUSTOMIZED ASSET PROTECTION POLICY - '
a. Ordinance or Law
The enforcement of any ordinance or law:
(1) Regulating the construction, use or repair of any property; or
(2) Requiring .the tearing down of any property, including the cost of removing its debris.
b. Earth Movement
(1) Any earth movement (other than sinkhole collapse), such as an earthquake, landslide, mine subsidence or
earth sinking, rising or shifting. But if loss or damage by fire or explosion results, we will pay for that
resulting loss or damage.
(2) Volcanic eruption, explosion or effusion, but if loss or damage by fire, building glass breakage or volcanic
action results, we will pay for that resulting loss or damage.
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 toss of or damage to Covered Property.
c. Governmental Action
Seizure. or destruction of property by order of governmental authority.
But we will pay for 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 loss or damage by fire results, we will pay for that resulting loss or damage.
e. Power Failure
The failure of power or other utility service supplied to the described premises, however caused, if the failure
occurs away from the described premises.
But if loss or damage by a Covered Cause of Loss results, we will pay for that resulting loss or damage.
f. War and Military Action
T.. 1 ~ L l1/~
CUSTOMIZED ASSET PROTECTION POLICY
(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
(I) Flood,.. surface water, waves, tides, tidal waves, overflow of any body of water, or their spray, .all whether
driven by wind or not;
(2) Mudslide or mudflow;
(3) Water that backs up from a sewer or drain; or
(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.
But if loss or damage by fire, explosion or sprinkler leakage results, we will pay for that resulting loss or
damage.
2. We will not pay for Ions or damage caused by or resulting from any of the following:
a. Electrical Apparatus: Artifici-ally generated-electric current,. including electric arcing, that disturbs electrical
devices, appliances or wires_
But if loss or damage by fire results, we will pay for that resulting loss or damage.
b. Consequential Losses: Delay, loss. of use or loss of market.
c. Smoke, Vapor, Gas: Smoke, vapor or gas from agricultural smudging or industrial operations.
d. Maintenance Types of Loss:
(1) Wear and tear;
(2) Rust, corrosion, fungus, 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;
Insects, birds, rodents or other animals;
Mechanical breakdown, including rupture or bursting caused by centrifugal force; or
:APP 001 cioi9z~ Page 11 of 29
_ CUSTOMIZED ASSET: PROTECTION POLICY
('n 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 loss or damage by the "Specified Causes of Loss" or building glass breakage results, we will-.pay
for that resulting loss or damage.
e. 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 loss or damage by fire or combustion explosion results, we will
pay for that resulting loss or damage. We will also-payfor 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.
f. F7rozen 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.
g. Dishonesty: , Dishonest or criminal act by you, any of your partners, employees, directors, trustees, authoriz d
representatives or anyone~to whom you entrust the property for any purpose:
(1) Acting alone or in collusion with others; or
(2) VJhether,QF riot 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
h. False Pretense: Voluntary parting. with. any property by you or anyone else to whom you have entrusted th
property if induced to do so by any fraudulent. scheme, trick, .device or false pretense.
i. Exposed Property: Rain, snow, ice or sleet to Personal Property in the. open.
j. Collapse: Collapse, except as provided. in the. Additional Coverage for Collapse. But if loss or damage by a
Covered Cause of Loss results at the described premises, we will pay for that resulting loss or damage.
k. Pollution: We will not pay for loss or damage caused by or resulting from the release, discharge or dispersal
of "pollutants" unless the release, discharge or dispersal is itself caused by any of the "Specified Causes of
Loss." But if loss or damage by the "Specified Causes of Loss" results, we will pay for the resulting damage
caused by the "Specified Cause of Loss."
3. We will not pay for loss or damage caused by or resulting from any of the following. But if loss or damage by a
Covered Cause of Loss results, we will pay for that resulting loss or damage.
a. Weather Conditions: But this exclusion only applies if weather conditions contribute in any way with a cause
or event excluded in paragraph I. above to produce the loss or damage..
CAPP 001 (10/92) Pace 12 of 7.9
CUSTOMIZED ASSET PROTECTION POLICY
b. Acts or Decisions: Acts or decisions, including the failure to actor decide, of any person, group, organization
or government 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 repairs, construction, renovation or remodeling; or
(4) Maintenance;
of part or all of any property. on or off the described premises.
4. Business Income and Extra Expense Exclusions: VJe will not pay for:
a. Any Extra Expense, or increase of Business Income loss, caused by or resulting from:
(1) Delay in rebuilding, repairing or replacing the property or resuming "operations," due to interference at
the location of the rebuilding, repair or replacement by strikers or other persons; or
(2) Suspension, lapse or cancellation of any license, lease or contract. But if the suspension, lapse or
.cancellation is directly caused by the suspension of "operations" we will cover such loss that affects your
Business Income during the period of restoration.
b. Any other consequential loss:
C. LIMITS OF II~TSURANCE
1. The most we will p~y~'for-loss or damage in any one occurrence is the applicable Limit of Insurance shown in the
Declarations.
2. The most we will pay- for loss of or damage to outdoor signs attached to buildings is $10,000 per sign in any one
occurrence.
3. The Limits applicable to the Coverage Extensions and the Additional Coverages of Fire Department Service Charge
and Pollutant Clean Up and Removal are in addition to the Limits of Insurance.
4. Building Limit Automatic Increase .
a. The Limit of Insurance for Buildings will automatically increase by the annual percentage shown in the
Declarations. If no percentage is indicated, the annual percentage shall be 8%.
b. The amount of increase will be:
(1) -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, times
(2) The percentage of annual increase shown in the Declarations, expressed as a decimal (example 8% is .08),
times
(3) The number of days since the beginning of the current policy year or the effective date of the most recent
ChPP 001 cioi9z~ Page 13 of 29
CUSTOMIZED ASSET PROTECTION POLICY
policy change amending the Building Limit, divided by 365. '
Example:
If: The applicable Building. Limit is $100,000. The annual percentage increase is $ 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 (14b/365) _ $3,200. .
5. Business Personal Property Limit -Seasonal Increase
a. The Limit of Insurance for Business Personal Property will automatically increase by the percentage. shown ir,
the Declarations to provide for seasonal variations. If no percentage is indicated, the percentage shall be 25
b. This increase 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 theloss or damage occurs; or
(2) The period of time you have been in business as of the date the loss or damage occurs..
D. DIDUCTIBLES
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 beductible up to the
applicable Limit of Insurance.
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 $250:
~r
a. Money and Securities;
b. Employee Dishones~y;
c. Glass; and
d. Outdoor Signs.
But this $250 Deductible will not increase the Deductible shown in the Declarations. This Deductible will be~used
to satisfy the requirement of the Deductible in the Declarations.
3. No Deductible applies to the following Additional Coverages:
a. Fire Department Service Charge;
b. Business Income; and
c. Extra Expense.
LAPP 001 t~oi9~~ Page 14 of 29
E. PROPERTY LOSS COI\TDifiIONS ~ .
1. Abandonment
'There can. be no abandonment of any property to us.
Z. Appraisal.
If we and you disagree on the amount of loss, either may make written demand for an appraisal of the loss. In this
event, each party will select a competent and impartial appraiser. The two appraisers will select an umpire. If they
cannot agree, either may request that selection be made by a judge of a court having jurisdiction. The appraisers
will state separately the amount of loss. If they fail to agree, "they will 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.
3. Duties in the Event of Loss or Damage
You must see that the following are done in the event of loss or damage to-Covered Property:
a. Notify the police if a law. may have been broken.
b. Give us prompt notice of the loss or damage. Include a description of the property involved.
c. As soon as possible, give us a description of how, when and where the loss or damage occurred.
d. Take all reasonable steps to protect the Covered. Property from further damage by a Covered Cause of Loss.
If feasible, set the damaged property aside and in the best possible order for examination. Also keep a record
of your expenses .for`:emergency and temporary repairs, for consideration in the settlement of the claim. This
will not increase the Limit of Insurance.
e. At our request, give us complete inventories of the damaged and undamaged property. Include quantities, costs,
values and amount of loss claimed.
f. Permit us to inspect the property and records proving the loss or damage.
Also permit us to take samples of damaged property for inspection, testing and analysis.
g. If requested, permit us to question you under oath at such times as may be reasonably required about any matter
relating to this insurance or your claim, including your books and records. In such event, your answers must
be signed.
h. Send us a signed, sworn statement of loss containing the information we request to investigate the claim. You
must do this within 60 days after our request. We will supply you with the necessary forms.
i. Cooperate with us in the investigation or settlement of the claim.
j. Resume all orpart of your "operations" as quickly as possible.
LAPP 001 c~oi9z> Page 15 of 29
CUSTOMIZID ASSET PROTECTION POLICY
4. .Legal Action Against Us
No one may bring a legal action against us under this insurance unless:.
a. There has been full. compliance with ali of the terms of this insurance; and
b. The action is brought within 2 years after the date on which the direct physical loss or damage .occurred.
5. Limitation - EIectronic Media and Records
We will not pay for any loss of Business Income caused by direct physical loss of or damage to Electronic Media
and Records after the longer of:
a. 60 consecutive days from the date of direct physical loss or damage; or
b. The period, beginning with the date of direct physical loss or damage, necessary to repair, rebuild. or replace
with reasonable speed and similar quality, other property at the described premises due. to loss or damage. caused
by the same occurrence. ,
Electronic Media and Records are electronic data processing recording or storage media. such as films, .tapes, discs,
drums or cells, data stored on such media or programming records used for electronic data processing or electrically
controlled equipment.
. Example No. l:
A Covered Cause of Loss damages a computer on June 1. It takes until September 1 to replace the computer, and
until October 1 to restore the data that was lost when the damage occurred. We will only pay .for the. Business
Income loss sustained during the period June 1 -September 1. Loss during the period September 2 -October 1 is
not covered.
Example No. 2:
A Covered Cause of Loss results in the loss of data processing programming records on August 1. The records are
replaced on October 15. We will only pay for the Business Income loss sustained during the. period August 1 -
September 29 (60 consecutive days). Loss during the period September 30 -October 15 is not covered.
6. Loss Payment
In the event of loss or damage covered by this policy:
a. At our option, we will either.
(1) Pay the value of lost or damaged property;
(2) Pay the cost of repairing or replacing the lost or damaged property;
(3) Take all or any part of the property at an agreed or appraised value; or
(4) Repair, rebuild or replace the property with other property of like kind and quality.
b. VJe will give notice of our intention within 30 days after we receive the sworn statement of loss.
c. 'We will not pay you more than your financial interest in the Covered Property.
ctiPa ooi ~ioi92~ Page 16 of 29
CUSTOMIZED ASSET PROTECTION POLICY
d. We will determine the value of Covered Property as follows:
(1) At replacement cost (without deduction for depreciation), except as provided in (2) through below.
(a) You may make a claim for loss or damage covered by this insurance on an actual cash value basis
instead of on a replacement cost basis. In the event you elect to have-loss or damage settled on an
actual cash value basis, you may still make a claim on a replacement cost basis if you notify us of
your intent to do so within 180 days after the loss or damage.
(b) We will not pay on a replacement cost basis for any loss or damage:
(i) Until the lost or damaged property is actually repaired or replaced; and
(ii) Unless the repairs or replacement are made as soon as reasonably possible after the loss or
damage.
(c) We will not pay more for loss or damage on a replacement cost basis than the least of:
(i) The cost. to replace, on the same premises, the Iost or damaged propertywith other property:
a. Of comparable material and quality; and
b. Used for same purpose; or
(ii) The amount you actually spend that is necessary to .repair or replace the lost or damaged
property.
(2) If the "Actual Cash Value -Buildings" option applies, as shown in the Declarations, paragraph (1) above
does not apply to Buildings.. Instead, we will determine the value of Buildings at actual cash value.
(3) The follotving property at actual cash value:
(a) Used or second-hand merchandise held in storage or for sale;
(b) Property of others;
(c) Household contents, except personal property in apartments or rooms furnished by you as landlord;
(d) Manuscripts;
(e) Works of art, antiques or rare articles, including etchings, pictures, statuary, marbles, bronzes,
porcelains and bric-a-brac.
(4) Glass at the cost of replacement with safety glazing material. if required by law.
.Tenants' Improvements and Betterments at:
(a) Replacement. cost if you make repairs promptly.
(b) A proportion of your original cost if you do not make repairs promptly. We will determine. the
proportionate value as follows:
LAPP 001 cioi9z> Page 17 of 29
CUSTOMIZED ASSET PROTECTION POLICY
f
(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 fo 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 Iease in this procedure.
(c) Nothing if others pay for repairs or replacement.
Valuable Papers and Records, including those which exist. on electronic or magnetic media (other than
prepackaged software programs), at the cost of:
- (a) Blank materials for reproducing the records; and
(b) Labor to transcribe or copy the records,
('n Applicable. only to the Optional Coverages:
(a) Money at its face value; and
(b) Securities at .their value at the close of business on the day the Ions isdiscovered.
e. Our payment for loss of or damage to Personal .Property of others will only be for the account of the owners
of the property. We may adjust losses with the owners of lost or damaged property if other than you. If a
pay the owners, such payments will satisfy your claims against us for the owners' property. We will not pay
the owners more than their financial interest in the Covered Property.
f. We may elect to-defend you against suits arising from claims of owners of property. VJe will do this at our
expense. : ` -
g. We will pay for covered loss or damage within 30 days after we receive the sworn statement of loss, if:
(1) You have complied with all of the terms of this policy; and
(2) (a) We have reached agreement with you on the amount of loss; or
(b) An appraisal award has been made.
7. Recovered Property
If either you or we recover any property after loss settlement, that party -must give the other prompt notice. At your
option, you may retain the property. But then you must return to us the amount. we paid to you for the property.
We will pay recovery expenses and the expenses to repair the recovered property, subject to the Limit of Insurance.
8. Resumption of Operations
We will reduce the amount of your:
a. Business Income loss, other than Extra Expense, to the extent you can resume your "operations," in whole or
in part by .using damaged or undamaged property (including merchandise or stock) at the described premises
or elsewhere.
cc,PP ooi c~oi92~ Page 18 of 29
CUSTOMIZED ASSET PROTECTION POLICY
b. Extra Expense .loss to the extent you can return 'operations" to normal and discontinue such Extra Expense.
9. Vacancy
If the building where loss or damage occurs has been vacant for more than 60 consecutive days before that loss. or
damage, we will:
a. Not pay for any loss or .damage caused by:
(1) Vandalism;
(2) Sprinkler leakage, .unless you have protected the system against freezing;
(3) Building glass breakage; .
(4) Water damage;
Theft; or
Attempted. theft.
b. Reduce the amount we would otherwise pay for the loss or damage by 15%.
A building is vacant when it does hot contain enough Business Personal Property to conduct customer "operations."
Buildings under construction are not considered vacant.
F. PROPERTY GENERAL CONDTI'IONS
1. Control of Property ,
..ti "A4
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 his 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. Mortgage Holders
a. The term "Mortgage Holder" includes trustee.
b. We will pay for covered loss of or damage to buildings or structures to each mortgage holder shown in the
Declarations in their order of precedence, as .interests may appear.
c. The. mortgage holder has the right to receive loss payment even if the mortgage holder has started foreclosure
or similar action on the building or stzucture.
d. If we deny your claim because of your acts or because you have failed to comply with the terms of this policy,
the mortgage holder will still have the right to receive loss. payment if the mortgage holder;
(1) Pays any premium due hnder this policy at our request if you have failed to do so;
(2) Submits a signed, sworn statement of loss within 60 days after receiving notice from us of your failure to
do so; and
caPP ooi c~oi9z> Page 19 of 29
' CUSTOMIZED ASSET PROTECTION POLICY '
(3) Has. notified us of any change in ownership, occupancy or substantial change in risk known to the mortgage
holder.
All of the terms of this policy will then apply directly to the mortgage holder.
e. Ifwe pay the mortgage holder 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 mortgage holder's rights under the mortgage will be transferred to us to the extent of the amount we
pay; and
(2) The mortgage holder's right to recover the full amount of the mortgage holder's claim will not be impaired.
At our. option,. we .may pay to the mortgage .holder 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 mortgage holder at least:
(1} 10 days before the effective date of cancellation if we cancel for your nonpayment of premium; or
(2) 30 days before the effective date of cancellation if we cancel. for any other reason.
g. If we elect not to renew this policy, we will give. written notice to the mortgage holder 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.
~b
4. Policy Period, Coverage Territory
Under this form:
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:
CAPP 001 (10/92) Paae 2(1 of ?_9
' ~V1.J1V11•..~~~ tavuL+i 11\Vi-L\.11V1V 1VLll.1 "
1. Optional Outdoor Signs Coverage
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 Section B., Exclusions, do not apply to this Optional Coverage,
except for:
(1) Paragraph B.l.c., Governmental Action;
(2) Paragraph B.l.d., Nuclear Hazard; and
(3) Paragraph B.l.f., VJar 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
(S7 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,I~e~larafions.
e. The provisions of this Optional Coverage supersede all other references to Outdoor Signs in this policy.
2. Optional Glass Coverage
a. We will pay for direct" physical loss of or damage to all exterior grade floor and basement glass, including all
lettering and ornamentation, located at the described premises and:
(1) Owned by you; or
(2) Owned by others but in your care, custody or control.
b. We will also pay for necessary:.
(1) Expenses incurred to put up temporary plates or board up openings;
(2) Repair or replacement of encasing frames; and
(3) Expenses incurred to remove or replace obstructions.
c. Paragraph A.3., Covered Causes of Loss, and Section B, Exclusions, do not apply to this Optional. Coverage,
except for:
LAPP 001 cioi9z~ Page 21 of 29
CUSTOMIZED ASSET PROTECTION POLICY ~
(1) Paragraph B.l.c., Government Action; `
(2) Paragraph B.l.d., Nuclear Hazard; and
(3) Paragraph B.l.f., War and Military Action.
d. We will not pay for loss or damage caused by or resulting from:
(1) Wear and tear;
(2) Hidden or latent defect;
(3) Corrosion; or
(4) Rust.
3. Optional Employee Dishonesty Coverage
a. We wily pay for direct loss of or damage to Business Personal Property, including Money 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 sustainloss or damage; and also
(Z) Obtain financial benefit. (other than salaries, commissions, fees, bonuses, promotions, awards, orofr
shazing, pensions or other employee benefits earned in the normal course of employment) for:
(a) Any employee; or
(b) And 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 commit whether acting alone
or in collusion with other persons.
(2) 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 related acts;
is considered one occurrence.
cnPP ooi cioi9z~ Page 22 of 29
l: U J 1 VMIG~LJ AJJt:1 rKU l ~L llvly ruL1C: X
{
e. 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 does not apply to any employee immediately upon discovery by:
(1) You; or
(2) Any of your partners, 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 wily pay only for. covered loss or damage 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 period of any prior insurance that
you could have recovered under that insurance except that the time within which to discover Ioss 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 eventscausing 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 prio~irirsurance had it remained in effect.
4. Optional Systems Breakdown Coverage
a. Coverage
We will pay for:
(1) Direct damage to Covered Property caused by a Covered Cause of Loss; and
(2) Your loss and expense. resulting from the necessary interruption of business caused by a Covered Cause
of Loss.
b. Covered Property
Covered Property, as used in this coverage, means any property that:
(1) You own; or
(2) Is in your care, custody or control.
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CUSTOMIZED ASSET PROTECTION POLICY ~
c. Covered Cause of Loss '
A Covered Cause of Loss is an "accident" occurring on your premises.
d. Coverage Extensions
(1) Expediting. Expenses
With respect to your damaged Covered Property, we will pay the reasonable extra cost to:
(a) Make temporary repairs; and
(b) Expedite permanent repairs; and
(c) Expedite permanent replacement.
(2) Hazardous Materials Coverage
We will pay up to $25,000 for any additional expenses you incur for:.
(a) CIeanup;
(b) Repair or replacement; or
(c) Disposal;
of Covered Property which is damaged, contaminated or polluted as a result of an "accident" by a
substance declared by a governmental agency to be hazardous to health. This Limitation does not apply
to damage, contamination or pollution caused by ammonia.
(3) Replacement"most Coverage
VJe will pay yoga the amount-you actually spend to repair or replace your damaged property with new
property of like kind, capacity, size and quality, whichever is less except as provided in (a) and (b) below:
(a) If any damaged property is not repaired or replaced, then we will pay only the actual cash value at
the time of the "accident."
(b) With respect to electronic or magnetic media, we wi11 pay only the cost of blank material far
reproducing- the records.
(4) Service Interruption
We will pay your loss and expense resulting from the necessary interruption of business caused. by an
"accident" fo any equipment that is:
(a) Located on or within 500 feet of your premises;
(b) Owned by the building owner (if you are a tenant) or a public utility company; and
(c) Used to supply electrical power, heating, air conditioning, gas, water, steam or telephone services to
your premises.
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t -
Spoilage .Coverage
We will pay for your loss of perishable goods due to spoilage resulting from lack of power, light, heat,
steam or refrigeration caused solely by an "accident," including an "accident" to any equipment that is:
(a) Located on or within 500 feet of your premises;
(b) Owned by the building owner (if you are a tenant) or a public utility company;-and
(c) Used to supply electrical power, heating, air conditioning, gas, water or steam. services to your
premises.
The amount of our payment will be determined on the basis of selling price of the perishable goods at the
time of the "accident" less discounts and expenses you otherwise would have had.
e. Limits of Insurance -
(1) Insurance under this coverage is separate from the Limit of Insurance shown on the Policy Declarations.
(2) We will only pay for-loss of Business Income or Extra Expense that occurs within 12 consecutive months
after the date of the "accident."
f. Deductible
We will not pay for loss, damage or expense resulting from any one "accident" until the total amount of loss,
damage or expense exceeds the Deductible shown in the Declarations. We will then pay the amount of loss,
damage or expense in excess of the Deductible.
g. Definitions
As used in this coverage: -
r--_
(1) Basic Coverage - "Accident"
"Accident" means a sudden and accidental breakdown of:
(a) Any boiler;
(b) Any fired or unfired pressure vessel subject to vacuum or internal pressure, other than the static
pressure of its contents; and
(c) Any piping and its accessory equipment.
At the time the breakdown occurs, it must become apparent by physical damage that requires repair or
replacement of the equipment or a part of the equipment.
(2) Comprehensive Coverage "Accident"
"Accident" means a sudden and .accidental breakdown of:
(a) Any boiler;
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CUSTOMIZED ASSET PROTECTION POLICY ' ~
(b) Any fired or unfired pressure vessel subject to vacuum or internal pressure other than the static
pressure of its contents;
(c) Any refrigeration or air conditioning system, piping and its accessory equipment; and
Any mechanical or electrical machine or apparatus used for the generation, transmission or utilization
of mechanical or electrical power. .
At the time the breakdown occurs, it must become apparent by physical damage that requires repair or
replacement of the equipment or a part of the equipment..
If covered electrical equipment requires drying out as a result cf flood, the drying out will be considered
an "accident."
If an initial "accident"causes other. "accidents," all will be considered one "accident." Ali "accidents" at
any one location that become apparent at the same time and .are the result of the same cause will be
considered one "accident.."
h. Exclusions.
(1) None of the following is an "accident":
(a) Depletion, deterioration, corrosion or erosion, wear and tear; nor
(b) The functioning of any safety or protective device..
(2) Under this coverage, we will not pay for loss caused by or resulting from:
(a) The breakdown of any structure, foundation or setting supporting or housing any equipment;
(b) The ~ir~akdown of any insulation or refractory material;.
(c) The breakdown of any sewer piping, any underground gas piping or any piping forming a part of a
sprinkler system;.
(d) The breakdown of any water piping. other than boiler feed water piping, boiler condensate return
piping or water piping forming a part of a refrigerating or air conditioning system;
(e) The breakdown of any vehicle,. elevator, escalator, crane. or hoist;
' (f) Fire or combustion explosion whether that fire or combustion explosion causes an "accident," is
caused by an "accident" or occurs at the same time as an "accident." With respect to any electrical
equipment, this exclusion is changed to read:
Fire or combustion explosion outside the equipment, whether that fire or combustion
explosion causes an "accident," is caused by an "accident," or occurs at the same time
as an "accident;"
(g) An explosion of gas or unconsumed fuel within the furnace of any boiler or fired vessel or within the
gas passages from the furnace to the atmosphere;
(h) An "accident" caused directly. or indirectly by earth movement, including but not limited to
earthquake, '.andslide, mudslide, subsidence or volcanic eruption;
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cAP~ oe~ ctoi92>
(i) Flood, unless an "accident" ensues;. or - -
(j) Damage to media used with any electronic computer or electronic data processing equipment.
i. Conditions -
(1) Suspension
When any equipment is found to be in, or exposed to a dangerous condition, any of our representatives
may immediately suspend the insurance against loss from an "accident" to that equipment..
We can do this by mailing. or delivering a written notice of suspension to your address as shown in the
Declarations, or at the address where the equipment is located. Once. suspended in this way, your
insurance can be reinstated only by written notice from us.
- 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.
(2) Reducing Your Loss
As respects Business Income/Extra Expense and Spoilage, you must reduce your loss,. if possible, by:
(a) Using due diligence and dispatch and all reasonable means to resume business, partially or completely;
(b) Using merchandise or other-property. available to you; and -
(c) Using the property. or services of others.
5. Optional k~nctional Replacement Cost Coverage
a. For the property described in the Schedule. or Declarations, in the event of .loss or damage covered by this
policy we will determine the value of Covered Property based on Functional Replacement Cost. Functional
Replacement Cost means the cost to replace the property with similar property intended to perform the same
function when replacement with identical property is impossible or unnecessary.
b. We will not pay on a Functional Replacement Cost basis for any loss or damage:
(1) Until the lost or damaged property is actually repaired or replaced; and
(2) Unless. the repairs or replacement are made as soon as reasonably possible after the-loss or damage..
c. VJe-will not pay more for loss or damage on a Functional Replacement Cost basis than the least of:
(1) The Limit of Insurance applicable to the lost or damaged property;
(2) The cost to replace, on the same premises, the lost or damaged property with other property used for the
same purpose; or
(3) The amount you actually spend that is necessary to repair or replace the lost or damaged property.
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CUSTOMI~ ASS~i' PROTECTiUN POLICY s
d. Other Insurance '
You may have other insurance covering the same property as this insurance. This insurance is primary-and will
not contribute with any insurance except for other Functional Replacement Cost insurance.
H. PROPERTY DEFINITIONS
1. "Operations".means your business activities occurring at the described premises..
2. "Period of Restoration" means the period of time that:
a. Begins with the date of direct physical loss or damage. caused by or resulting from any Covered Cause of Loss.
at the described premises; .and
b. .Ends on`the date when the property at the described premises should be repaired, rebuilt or replaced with.
reasonable-speed and similar quality.
"Period of Restoration" does not include any increased period required due to the enforcement of any ordinance or
law that:
c. Regulates the construction, use or repair, or requires the tearing down of any property; or
d. Requires any insured or other to test for, monitor, clean up, remove, contain, treat, detoxify or neutralize, or
. in anyway respond to or assess the effects of "pollutants."
The expiration date of this policy will not cut short the "period of restoration."
3. "Pollutants" means any solid, liquid, gaseous or thermal irritant or contaminant, including smoke, vapor, soot,
fumes, acids, alkalis, chemicals and waste. Waste includes materials o be recycled, reconditioned or reclaimed.
4. "Speed Causes~of~T.oss" means the following: , .
Fire; lightning; explosio~.~; windstorm or hail; smoke; aircraft or. vehicles; riot or civil commotion; vandalism;
leakage from fire extinguishing equipment; sinkhole collapse; volcanic action; falling 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;
(Z) Sinking or collapse of land into man-made underground cavities;
(3) Diminution in the value of land; or
(4) Indirect loss, including but not limited to loss of use.
b. Falling objects does not include loss of or damage to:
(1) Personal Property in the open; or
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CAPP 001 (10/92)
(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 or
cracking of any part of a system or appliance containing water or steam.
~e
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