Resolution No. 72941
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
RESOLUTION NO. 7294
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF VERNON APPROVING AND AUTHORIZING THE
EXECUTION OF AN AGREEMENT FOR PROFESSIONAL
CONSULTING SERVICES BY AND BETWEEN MTGL, INC.
AND THE CITY OF VERNON FOR SERVICES RELATIVE
TO THE CITY HALL ADDITION AND REMODEL PROJECT
WHEREAS, the City Council of the City of Vernon adopted
Resolution No. 7239 on December 8, 1998, approving Contract
No. 549 for the construction of City Hall Addition and Remodel;
and
WHEREAS, the City desires to retain the services of a
consultant to provide materials testing and special inspection
services for the City Hall Addition and Remodel Project; and
WHEREAS, MTGL, INC. is desirous of performing such
materials testing and special inspection services and making
available its experience and expertise to the City of Vernon and
has submitted a proposal to the City dated January 20, 1999, which
includes a description of proposed services and schedule of fees;
and
WHEREAS, the City of Vernon and MTGL desire to enter
into an Agreement for Professional Consulting Services setting
forth the terms and conditions of the services to be performed.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF
THE CITY OF VERNON AS FOLLOWS:
SECTION 1: The City Council of the City of Vernon
hereby finds and determines that the recitals contained
hereinabove are true and correct.
SECTION 2: The City Council of the City of Vernon
hereby approves an Agreement for Professional Consulting Services,
1
2
3
4
5
6
1�
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
a copy of which has been presented to the City Council
concurrently with this resolution, and the City Council hereby
orders said Agreement to be received and filed by the City Clerk.
SECTION 3: The City Council of the City of Vernon
hereby authorizes the Mayor and the City Clerk to execute said
Agreement for, and on behalf of, the City of Vernon.
SECTION 4: The City Clerk of the City of Vernon shall
certify to the passage of this resolution, and thereupon and -
thereafter the same shall be in full force and effect.
APPROVED AND ADOPTED this 16th day of March, 1999.
LEONIS C. MA URG, Ifayor
ATTEST*
BRUCE V. MALKENHORST, City Clerk
-2-
1 STATE OF CALIFORNIA )
)ss
2 COUNTY OF LOS ANGELES )
3 I, BRUCE V. MALKENHORST, City Clerk of the City of
4 Vernon, do hereby certify that the foregoing Resolution, being
5 Resolution No. 7294, was duly adopted by the City Council of the
6 City of Vernon at a regular meeting of the City Council duly held
7 on Tuesday, March 16, 1999, and thereafter was duly signed by the
8 Mayor of the City of Vernon.
9
10
11 BRUCE V. MALKENHORST, City Clerk
12 (SEAL)
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
-3-
SUPPORTING
DOCUMENTS
Execution Copy
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
AGREEMENT FOR
PROFESSIONAL CONSULTING SERVICES
THIS AGREEMENT is made, entered into and executed in
duplicate originals, either copy of which may be considered and
used as the original hereof for all purposes,, as of this
day of' , 1999, in the City of Vernon, County of Los
Angeles, California
BY AND BETWEEN THE CITY OF VERNON,
(hereinafter referred to as
"City")
4305 Santa Fe Avenue
Vernon, California 90058
AND MTGL, Inc. (hereinafter
referred to as "Consultant")
2992 E. La Palma Avenue
Suite A
Anaheim, California 92806
WITNESSETH
WHEREAS, the City desires to retain a company to perform
materials testing and special inspection services for the City
Hall Addition and Remodeling Project; and
WHEREAS, the City desires to engage the Consultant for
the services hereinafter described; and
WHEREAS, Consultant submitted a proposal to City dated
January 20, 1999 ("the Proposal") which includes a description of
proposed services and a cost proposal; and
WHEREAS, the Consultant represents that it is qualified
to perform such services under this Agreement for Professional
Consulting Services (hereinafter "Agreement").
NOW, THEREFORE, THE PARTIES HERETO DO MUTUALLY AGREE AS
SET FORTH HEREIN:
11
PSI
7
8
9
10
11
12
13
14
15
16
17'
18
19
20
21
22
23
24
25
26
27
28
I. SCOPE OF SERVICES
Consultant shall perform services as outlined in the
Proposal, which is made a part hereof by reference. It is
understood and agreed that in the event of a conflict between the
Proposal and this Agreement, the terms of this Agreement shall
prevail. It is further understood and agreed that the following
provisions under the heading "General Conditions" in the Proposal
are deemed omitted: paragraph 4 (second sentence, commencing with
the words "If Client assigns this responsibility . . .);
paragraphs 8,9 and 12 in their entirety; paragraph 16 (third
sentence, commencing with the words "Client will not distribute or
convey . ."); and paragraph 17 in its entirety.
II. TIME OF PERFORMANCE
Consultant's services herewith shall commence upon
signing of the Agreement and shall be completed according to the
Proposal, unless terminated or extended.
III. COMPENSATION
1. Services. The City shall compensate the
Consultant for actual effort expended on a time and expense basis
in accordance with the fee schedule set forth in the Proposal.
The total compensation shall not exceed Nineteen Thousand One
Hundred Seventy-five Dollars and No Cents ($19,175.00) without the
written approval of the City.
2. Expenses. Directly related travel expenses and
other costs may be billed if approved in advance by the City
Administrator.
-2-
1 IV. METHOD OF PAYMENT
2 Within thirty (30) days after the last day of any month
3 in which services have been performed or costs incurred hereunder,
4 the Consultant shall submit an invoice to the City stating the
511 amount due the Consultant. Invoices shall contain an itemization
611 of services rendered, directly related job expenses and
7 subcontract charges, and an estimate of the percentage completed
8 for each milestone or task. Consultant shall be responsible for
9 paying all subcontractors used in the performance of this
10 Agreement. Subcontractors shall not bill the City directly.
11 payment of the invoice shall be made after acceptance and
12 approval by the City within thirty (30) days of receipt. The
13 City's approval of the invoice shall not be unreasonably withheld.
14 V. CHANGES AND EXTRA SERVICES
15 The City reserves the right to request changes in the
16 services to be performed by the Consultant. All such changes
17 shall be incorporated in written change orders executed by the
18 City and the Consultant which shall specify the changes ordered
19 and the adjustment of compensation and completion time required
20 thereof.
21 Any services added to the scope of this Agreement by a
22 change order shall be executed under all applicable conditions of
23 this Agreement. No claim for additional compensation or extension
24 of time shall be recognized unless contained in a duly executed
25 change order.
26 VI. CONFIDENTIAL INFORMATION
27 1. Access to Confidential Information. The City of
28 Vernon may provide Consultant with, or allow Consultant access to,
-3-
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
certain information not available to the public concerning the
City of Vernon, or businesses located in the City of Vernon. The
information may include company information, taxes, sales, value
of assets, or other such information. All such information shall
be known as "Confidential Information" and may not be used to
circumvent the responsibility of either party to this Agreement.
2. No Disclosure. Except as expressly permitted,
Consultant shall not disclose, permit the disclosure of, release,
disseminate, or transfer, whether orally or by any other means,
any part of such Confidential Information to any other person or
entity, whether corporate, governmental, or individual, without
the express prior written consent of an authorized representative
of the City of Vernon. Consultant shall return any written
Confidential Information, and all copies made of such items, to
the City upon the City's written request, but in any event not
later than the date that the Consultant has performed all services
to be performed pursuant to this Agreement. Consultant hereby
agrees that such Confidential Information and any documents
provided may be used by Consultant only as authorized by the City
or the City of Vernon. Consultant shall take reasonable measures
to avoid any disclosure of any such Confidential Information to
any unauthorized person.
3. Court Ordered Disclosure. Consultant shall
immediately notify the City of any court order or subpoena
requiring disclosure of Confidential Information, and shall
cooperate with legal counsel in the appeal or challenge of any
such order or subpoena. Recipient may only disclose Confidential
Information required to be disclosed pursuant to court order or
-4-
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
subpoena after legal counsel has exhausted any lawful and timely
appeal or challenge.
4. Remedies. In addition to any other remedies
that it may have at law or in equity, the City shall be entitled
to a temporary and permanent injunction by a court of competent
jurisdiction against any breach or threatened breach of the
Confidential Information provisions of this Agreement. Consultant
acknowledges that in case of such breach or threatened breach of
said provisions, the City would have no adequate remedy at law.
VII. INDEMNITY AND INSURANCE.
1. Indemnification of City. The Consultant shall
indemnify, defend, protect and hold the City and its officers,
agents and employees, free and harmless from and against any and
all claims, demands, losses, damages, liabilities, fines, charges,
penalties, orders, judgments, and all costs and expenses incurred
in connection therewith, including reasonable attorney's fees and
costs of defense arising out of or attributable to the negligent
or wrongful acts of Consultant or its subcontractors, employees or
agents in the performance of services under this Agreement, except
to the extent arising from or caused by the sole active
negligence or willful misconduct of the City, its officers, agents
or employees.
2. Insurance. Prior to commencing work hereunder,
the Consultant shall provide the City with proof of insurance
providing and maintaining the coverages and endorsements set forth
in the Insurance Schedule attached hereto as Exhibit "A;"
provided, that coverage is not required for active negligence of
the City to the extent that indemnification for the City's active
-5-
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
negligence would be invalid under Section 2782(b) of the
California Civil Code. Said proof of insurance shall also provide
that said policy or policies shall not be canceled or reduced in
liability limits without giving at least thirty (30) days prior
written notice to the City.
VIII. GENERAL PROVISIONS
1. Independent Contractor. At all times during the
term of this Agreement, the Consultant shall be an independent
contractor and shall not be an employee of the City. The City
shall have the right to control the consultant only insofar as the
results of the Consultant's services rendered pursuant to this
Agreement; however, the City shall not have the right to control
the means by which the Consultant accomplishes services rendered
pursuant to the Agreement except to the extent that such services
involve the use of City of Vernon property or Confidential
Information.
2. Consultant Not Agent. Except as the City may
specify in writing, the consultant shall have no authority,
express or implied, to act on behalf of the City in any capacity
whatsoever as an agent. The Consultant shall have no authority,
expressed or implied, pursuant to this Agreement to bind the City
to any obligation whatsoever.
3. Validity. The validity, interpretation and
performance of this Agreement shall be controlled and construed
under the laws of the State of California.
4. Products of Consulting. All products of
consulting services with the exception of computer software
developed by the Consultant, shall become the property of the City
Q=
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
and shall be delivered to the City before the end of the
performance of this Agreement. Computer software shall remain the
property of the Consultant, except for the City's continued right
to use said software at no extra cost. Copies of all daily field
summary reports, field memoranda, field and laboratory test
results, and final reports shall be made available to the City.
5. Assignment and Subcontracting Prohibited.
Consultant may not assign or subcontract any right or obligation
of this Agreement except with the express written consent of the
City. Any other attempted or purported assignment of any right or
obligation pursuant to this Agreement shall be void and of no
effect.
6. Termination. This Agreement may be terminated
by the City without cause on thirty (30) days written notice to
the Consultant. The Consultant shall be entitled to the
compensation earned by it prior to the date of the termination
notice, computed pro rata up to and including that date, plus
compensation for work performed during the thirty -day notice
period and authorized in the termination notice. Consultant may
terminate this Agreement on twenty (20) days written notice to the
City if City fails to pay Consultant's invoice within forty-five
(45) days of receipt by City; provided, that the Agreement shall
not be terminated if the City issues payment within said twenty -
day notice period.
7. Attornev's Fees. In the event LnaL i%� w--oun-
necessary for either party to this Agreement to enforce any of the
provisions of this Agreement, the parties agree that a court of
competent jurisdiction may determine and fix reasonable attorney's
-7-
1 fees to be paid to the successful litigant.
2 8. Notices. Notices to the parties unless
3 otherwise requested in writing shall be sent to:
4 City: THE CITY OF VERNON
5 ATTN: BRUCE V. MALKENHORST
CITY ADMINISTRATOR
6 4305 SANTA FE AVENUE
VERNON, CA 90058-0805
7 Consultant: MTGL, INC.
8 ATTN: MICHAEL J. LANDON
PRESIDENT
9 2992 E. LA PALMA AVENUE, SUITE A
ANAHEIM, CALIFORNIA 92806
10 IX. ENTIRE AGREEMENT
11 This Agreement is the entire Agreement of the parties,
12 the Consultant represents that in entering into this Agreement, it
13 has not relied on any previous representations or understandings
14 of any kind or nature.
15 X. BENEFIT OF AGREEMENT
16 This Agreement shall bind and benefit the parties hereto
17 and their heirs, successors, and permitted assigns.
18
19
20
21
22
23
24
25
26
27
28
-8-
1 XI. GOVERNING LAW.
2 This Agreement shall be governed by and construed and
3 enforced in accordance with the laws of the State of California.
4 IN WITNESS WHEREOF, the City and the Consultant have
5 executed this Agreement as of the date first hereinabove set
6 forth.
THE CITY OF VERNON
7
BY: "UR
>8 E NIS C. , Mayo
9 ATTEST:
10 L`
11 BRUCE V. MALKENHORST, City Clerk
12 APPROVED AS TO FORM:
13 ,
DAVID B. BREARLEY, City Attorney
14
MTCL, INC.
15
1BY.
6
MICHAEL J. DON, President
17
BY:
18 MARIANNE SIEN , Secretary
19
20
21
22
23
24
25
26
27
28
-9-
EXHIBIT A
INSURANCE SCHEDULE (CONSULTANT)
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 $ 500,000 $1,000,000 $ 500,000
workers' Comnensation S Statutory
II. General and
Professional Liability
General Liability
$1,000,000
$2,000,000
$1,000,000
Premises Operations
$1,000,000
$2,000,000
$1,000,000
Elevators
(if applicable)
$1,000,000
$2,000,000
$1,000,000
Independent
Contractors
$1,000,000
$2,000,000
$1,000,000
Products - Completed
Operations
$1,000,000
$2,000,000
$1,000,000
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 additional insureds under the policy.
2. An endorsement providing the City of Vernon thirty (30) days
notice of cancellation or material reduction of liability limits.
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 either form
checked below. Certification of the following proofs by the insurance
agent 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.
X A copy of each policy certified by an officer of the underwriter
or carrier and notarized.
EXHIBIT A
DATE:
TO:
FROM:
RE:
MEMORANDUM - CITY OF VERNON Vi
f
March 2, 2000
Bruce V. Malkenhorst
City Administrator
Samuel Kevin Wilson 411,
Director of Community Services & Water
MTGL — Agreement for Professional Consulting Services executed
g 9
on March 16, 1999 (Special Inspection Services)
The construction of the new City Hall addition is approximately 70% complete to
date. The total amount paid to MTGL for providing special inspection services as
of December 1999 is $25,432. The total amount for the MTGL Agreement is
$29,175. Because of the continued slow pace of the Contractor's work, the cost
of special inspection services needed to oversee the completion of the project
will exceed the total amount of the Agreement.
MTGL 'provides special inspection services for reinforcing steel, concrete,
welding, and fireproofing construction as required by the Uniform Building Code.
Attached is a copy of the letter from MTGL dated February 29, 2000 estimating
the additional amount needed to provide special inspection services for the
duration of the project.
The additional amount of $25,000 would bring the total cost to $54,175. This
seems reasonable when compared to the second low bid estimate of $43,235
from Universal Laboratories, Inc. At the current pace that the Contractor is
working, Universal's total cost would have been significantly higher. The City
chose MTGL because they had the lowest hourly rates and that the City
determines when the inspector is needed on the jobsite. MTGL will continue to
be compensated on a time and materials basis based on actual effort expended.
It is recommended that you authorize the Director of Community Services &
Water to issue a change order in the amount of $25,000 in accordance with the
MTGL agreement.
Attachment
MEMO-BVM-MTGL AMENDMENT 2
Feb-29-00 01:51P MTGL,INC_ 714 666 2569 P_02
February 29, 2000
City of Vernon
4305 Santa Fe Avenue
Vernon, CA 90058
Attn: Mr. Ying Kwan
Re: Budget Increase
Vernon City Hall Addition & Remodel
4305 Santa Fe Avenue
Vernon, California
Dear Mr. Kwan:
NO F. to Palma Ave., Suite A
Anaheim, CA 92806
Phow 714.632.2999
Fax: 714.632.2974
www.mtglinc.com
Log No. 0-1372R
Project No. 2005A01
Based on our conversation of 2128/00, we have exceeded the original budget of
$29,175.00. We are requesting an increase of $25,000.00 to complete the
project -
Please issue the appropriate change order for $25,000,00 so that we can
finalize the project
If you have any questions, please contact us at (714) 632-2999.
Sincerely,
MTGL, Inc.
Cindy Dickens
Marketing Assistant
CYDIcd
cc: ML
SL
2005 A01
DATE: January 5, 2000
TO: Bruce V. Malkenhorst
City Administrator
FROM: Samuel Kevin Wilson
Director of Community Services & Water
RE: MTGL — Agreement for Professional Consulting Services executed
on March 16, 1999 (Special Inspection Services)
The construction of the new City Hall addition is approximately 53% complete to
date. The total amount paid to MTGL for providing special inspection services as
of November 1999 is $18,606. The Not -to -Exceed amount for the MTGL
Agreement is $19,175. Because of the slow pace of the Contractor's work, the
cost of special inspection services needed to oversee the completion of the
project will exceed the original amount of the Agreement.
MTGL provides special inspection services for reinforcing steel, concrete,
welding, and fireproofing construction as required by the Uniform Building Code.
Attached is a copy of the letter from MTGL dated December 23, 1999 estimating
the additional amount needed to provide special inspection services for the
duration of the project.
The additional amount of $10,000 appears to be reasonable. MTGL will continue
to be compensated on a time and materials basis based on actual effort
expended.
It is recommended that you authorize the Director of Community Services &
Water to issue a change order in the amount of $10,000 in accordance with the
MTGL agreement.
Attachment
C:\My Documents\MEMO-BVM-MTGL AMENDMENT.doc
2992 E. La Palma Ave., Suite A
Anaheim, CA 92806
Phone: 714.632.2999
Fax: 714.632.2974
www.mtgllnc.com
December 23, 1999
City of Vernon Log No. 9-224o
4305 Santa Fe Avenue Project. No. 2005-001
Vernon, CA 90058
Attn: Mr. Ying Kwan
Re: Budget Increase
Vernon City Hall Addition & Remodel
4305 Santa Fe Ave.
Vernon, California
Dear Mr. Kwan:
Based on our research and conversation of 12/22199, we have exceeded the
original budget of $19,175.00. We are requesting an increase of $10,000.00 to
complete the project.
-Please issue the appropriate change order for $10,000.00 so that we can
finalize the project.
If you have any questions, please contact us at (714) 632-2999.
Sincerely,
MTGL, Inc.
Cindy Dickens
Marketing Assistant
CC.' ML
2005-001
Construction Testing & Inspection.
CITY COUNCIL
LEONIS C. MALBURG
Mayor
THOMAS A. YBARRA
Mayor Pro-Tem
Wm. ".BILL" DAVIS
Councilman
H. "LARRY" GONZALES
Councilman
W. MICHAEL McCORMICK
Councilman
BRUCE V, MALKENHORST
City Administrator / City Clerk
FAX (323) 581-7924
DAVID B. BREARLEY
City Attorney
FAX: (626) 330-5818
KEVIN WILSON
Director of Community Services & Water
FAX: (323) 588-2761
CITY HALL
4305 SANTA FE AVENUE, VERNON, CALIFORNIA 90058
TELEPHONE (323) 583-8811
April 7, 1999
MTG, Inc .
2992 E. La Palma Avenue
Suite A
Anaheim, CA 92806
Attn: Michael J. Landon, President
Re: Agreement for Professional Consulting Services
Dear Mr. Landon:
KENNETH J. DeDARIO
Director of Municipal Utilities
FAX: (323) 583-1983
DAVE TELFORD
Fire Chief
FAX: (323) 581-1385
BRUCE W. OLSON
Police Chief
FAX: (323) 583-5236
Enclosed for your files is a fully executed duplicate original of
the above referenced agreement which was approved by the Vernon
City Council on March 16, 1999 through Resolution No. 7294.
If you have any questions, please refer them to Mr. Kevin Wilson,
our Director of Community Services & Water at Ext. 245.
Very truly yours,
CITY F VERNON
Lzej
Glo i J. Oros
Chief Deputy City Clerk
GJO:rcm
cc: K. Wilson
Enclosure
MEMDRANDUM
TO: Kevin Wilson, Director of Community Services & Water APR 1z, 5 1999
Cof17mLipey ;�::rviCS
FROM: Joan Francone, Risk Manager
DATE: April 5, 1999
SUBJECT: MTGL, INC. - INSURANCE - AGREEMENT FOR SPECIAL INSPECTION
SERVICES CITY HALL ADDITION AND REMODEL
This is to advise you that the above referenced consultant has provided acceptable
insurance coverage.
Please contact me if you have any questions.
JF/ca
Enclosures
04/05/1999 13:09 6192994555 TENUTO ASSOCIATES PAGE 01
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, AGGREGATE LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS, _
TYPE OP INSURANCE
POLICY NumRER
POLICY EFFECTIVE
POLICY-6XPIRAnoN
LIMITS
rAk
LIABILITY
X COMMERCIAL GENERAL LIABILITY
CLAIMS MAD€ 1 OCCUR
7JW 305 968-00
02/11/99
02/11/00
EACH OCCURRENCE
, 0 0 0, 0 0 0
FIRE PAMAGE IAny one fire)
_el
9 10 0 r 0 O 0
MEO EXP IAny one pereeM
6 101 000
PERSONAL&ADVINJURY
s1 000000
GENERAL AGGREGATE
s2 000 000
GEN'L AOORE(IATE LIMIT APPLIES PER:
X POLICY PAO� LOO
PRO6UCT'S.- COMP/OP AOG
52 000 O 00
t�
n
AUTOMOBILE
LIABILITY
ANY AUTO
ALL OWNED AUTOS
SCHEDULED AUTOS
HIREDAUTOS
NON OWNED AUTOS
2842373
10/11/98
/
10 17-/99
.War
COMBINED SINGLE LIMIT
Re accdeM)
5 f� n
1, V 00,000
X
BODILY INJURY
War person)
e
X
X.
BODILY INJURY r
accident)
9
X
PROPERTY DAMAOE
(Par accident)
s
GARAOE LWetLITY
ANY AUTO
AUTO ONLY • EA ACCIDENT
s
OTHER THAN EA ACC
AUTO ONLY: AGO
6
..
S
A
EXCESS LIABILITY
X OCCUR CLAIMS MADE
DEDUCTIBLE
RETENTION a
7,7W 305 968-00
02/11/99
02/11/00
EACH OCCURRENCE
$ S 1 0 O O 1 0 0 0
AGGREGATE
65 , 0 0 0, 0 0 0
e
B
e
C
WOR[ERSCOMPENSATION AND
EMPLOVERS'LIABILITY
1528960-98
02/01/99
07/01/99
WC STA U• DTH-
X
E.L. EACH ACCIDENT_
s1d 000 000
E.L. DISEASE - EA EMPLOYEE
e l 0 0 0 0 0 0
E.L. DISEASE - POLICY LIMIT
I 81 0 0 0 000
D
OTMER
PROPESIONAL
LIABILITY
ZIZU960720
RETRO DATE:
10/11/98
06 11 93
10/11/99
.71,000,000 CLAIM/AGG
15,000 DED
DESCRIPTION OF OPE9ATi0N81LOCAT1IIN8tIEHSCLEStEXCWBIONS ADDED BY ENOOR9 MENTISPECIAL PROVISIONS
RE: ALL OPERATIONS / CITY OF VERNON, IT'S OFFICERS AND EMPLOYEES ARE NAMED AS
ADDITIONAL INSURED PER ATTACHED ENDORSEMENT.
ucn P Irlvm e r nuLuen I I ADOInONAL INBURW,, WOURER LETTER: CANCELLATION
SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION
CITY HALL DATE THEREOF, THE ISSUING -))SURER WILL ENDEAVOR TO MAIL 30 DAYS WRITTEN
430.3 SAN'TA FE AVENUE NOTICE TO THE COPPICATE HOLDER NAMED TO THE LEFT, BUT FAILURE TO 00 SO SHALL
VERNON, CA 90058 IMPOSE NO OBUOATION OR LIABILITY OF ANY KIND UPON TH6 R. ITS AOENTB OR
M PAESENTATIV9S.
AUTHORIZED M:V� 0
AWN; CLAUDIA PAX 323 585-4661jr
ACOAb 2S-5 (3197) a ACORD CORPORATION 1999
04/05/1999 13:09 6192994555 TENUTO ASSOCIATES PAGE 02
INSURED: MTGL, INC.
POLICY NUMBER: 7JW 305 968-00
COMMERCIAL GENERAL LIABILITY
THIS ENDORSEWNT 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.
SCHEDULE
Name of Person or Organization:
CITY OF VERNON,
IT'S OFFICERS AND EMPLOYEES
4303 SANTA FE AVENUE
VERNON, CA, 90058
JOB: ALL OPERATIONS
SUCII INSURANCE AFFORDED BY THIS POLICY FOR THE BENEFIT OF M ADDITIONAL
INSUREDS SHALL BE PRIMARY INSURANCE BU'r ONLY AS RESPECTS ANY CLAIMS, LOSS,
OR LIABILITY ARISING OU'T OF THE OPERATIONS OF TIIE NAWD INSURED, AND ANY
INSURANCE MAINTAINED BY THE ADDITIONAL INSUREDS SHALL BE CONSIDERED NON-
CONT'RMUITNG.
(If no entry appears above, information required to complete this endorsement will be shown in the
Declarations as applicable to this endorsmment.)
WHO IS AN INSURED (Section Il) 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 jusured by or for you_
CG 20 10 1185 Copyright, Insurance Services'Office, Inc., 1984
d {
ZURICH REINSURANCE
Zurich Reinsurance (London) Limited
PROFESSIONAL LIABILITY INSURANCE POLICY
DECLARATIONS
Policy No. ZRU960720
1)POLICYHOLDER: MTGL, Inc.
2)Mailing Address: 2992 E. La Palma Avenue, Suite A
Anaheim, CA 92806
Prior Policy No. ZRU960328
Form No. RA&MCO SP96.1
3)POLICY PERIOD: Effective Date: 10/11/08 Expiration Date:
(12:01 a.m. Standard Time at the above Mailing Address)
4)COVERAGE: Geotechnical Engineers Professional Liability Claims Made
5)OUR Limit of Liability is: $1,000000 EACH CLAIM
6)YOUR Deductible is:
7)YOUR Premium is:
8)Prior Acts Retroactive Date:
9)Special Conditions:
Contractual Liability as endorsed.
Service of Suit - California as endorsed.
$1,000,000
$15,000
$32,449.00
June 11, 1993
10/11/99
including costs and
expenses.
Policy Aggregate including costs and
expenses.
for each CLAIM made against this
policy for this POLICY PERIOD.
for the POLICY PERIOD shown
above. Note: This is an advance
deposit premium.
NOTICE: THIS IS A CLAIMS MADE AND REPORTED POLICY
This means that YOU are covered, subject to all of the provisions of this policy, only for those claims of which WE
receive written notice during the POLICY PERIOD as explained in Your Claims Made and Reported Coverage o
page 5 of this policy. PLEASE READ THE POLICY CAREFULLY AND DISCUSS THIS COVERAGE WITH
YOUR INSURANCE AGENT OR BROKER.
Countersigned at: Concord, CA Date:
Countersigned by: Grant H. Weaver
March 15, 1999
ti. L_e_�
RA&MCO Insurance Services -Authorized Representative
In witness whereof, the Company has caused this policy to be executed and attested, but this policy shall
not be valid unless countersigned by a duly authorized representative of the Company, where required.
On this the 15"' day of March, 1999, DR AT. WEAVER'
EAV R
I, Andrea T. Weaver, the undersigned
Notary Public, hereby certify that this
document is a true, complete and
unaltered Zurich Reinsurance (London)
Limited professi al 11,bility p of y
Notary Publi , P I I t,��
Comm No.1095573 D
V NOTARY PUBLIC -CALIFORNIA fA
< CONTRA COSTA COUNTY n
My Commission Expires
April 28, 2000
Pagel of 2
Chief Underwriting Officer
�iCO
DECLARATIONS PAGE SUPPLEMENT
STATE OF CALIFORNIA
NOTICE:
1. The insurance policy that you [have purchased] [are applying to purchase] is
being issued by an insurance company that is not licensed by the state of California.
These companies are called "nonadmitted" or "surplus lines" insurers.
2. The insurance company is not subject to the financial solvency regulation and
enforcement which applies to California licensed companies.
3. The insurance company does not participate in any of the insurance guarantee
funds created by California law. Therefore, these funds will not pay your claims or
protect your assets if the insurance company becomes insolvent and is unable to make
payments as promised.
4. For additional information about the insurance company you should ask
questions of your insurance agent, broker, or "surplus lines" broker or you may
contact the California Department of Insurance.
Policy Number: ZRU960720
Page 2 of 2
ENDORSEMENT 1
CONTRACTUAL LIABILITY
In consideration of the premium paid, it is understood and agreed that Exclusion 1 of this policy is
deleted and replaced by the following:
1. WE will cover YOU for any liability which YOU assume under any contracts or
agreements for professional services, whether written or oral, to any and all
persons or organizations with whom YOU so contract or agree to the extent that
such liability arises from YOUR negligent act, error or omission in the
performance of YOUR professional services.
Notwithstanding the above, WE will not cover YOU for liability of others which
YOU assume under any contract or agreement, whether written or oral, except
to the extent that such liability arises to another solely as a result of its vicarious
or imputed liability for YOUR own negligent act, error or omission in the
performance of YOUR professional services. Nor will WE cover YOU for
warranties, guarantees, certifications, penalty clauses or liquidated damages.
This endorsement does not amend or increase OUR Limit of Liability shown in Item 5 on the
Declarations Page of YOUR policy.
All other policy provisions shall remain the same.
Attached to and forming part of No. ZRU960720
ISSUED TO:
EFFECTIVE:
MTGL, Inc.
10/11/98
BY �O'U'-t �-
ENDORSEMENT 2
SERVICE OF SUIT CLAUSE (U.S.A.)
It is agreed that in the event of the failure of the Underwriters hereon to pay any amount claimed to be
due hereunder, the Underwriters hereon, at the request of the INSURED (or Reinsured), will submit to
the jurisdiction of a Court of competent jurisdiction within the United States. Nothing in this Clause
constitutes or should be understood to constitute a waiver of Underwriters' rights to commence an
action in any Court of competent jurisdiction in the United States, to remove an action to a United
States District Court, or to seek a transfer of a case to another Court as permitted by the laws of the
United States or of any State in the United States. It is further agreed that service of process in such suit
may be made upon
Mendes & Mount
725 South Figueroa Street, 19th Floor
Los Angeles, CA 90017
U.S.A.
,and
that in any suit instituted against any one of them upon this contract, Underwriters will abide by the
final decision of such Court or of any Appellate Court in the event of an appeal.
The above -named are authorized and directed to accept service of process on behalf of Underwriters in
any such suit and/or upon the request of the INSURED (or Reinsured) to give a written undertaking to
the INSURED (or Reinsured) that they will enter a general appearance upon Underwriters' behalf in the
event such a suit shall be instituted.
Further, pursuant to any statute of any state, territory or district of the United States which makes
provision therefor, Underwriters hereon hereby designate the Superintendent, Commissioner or Director
of Insurance or other officer specified for that purpose in the statute, or his successor or successors in
office, as their true and lawful attorney upon whom may be served any lawful process in any action, suit
or proceeding instituted by or on behalf of the INSURED (or Reinsured) or any beneficiary hereunder
arising out of this contract of insurance (or reinsurance), and hereby designate the above -named as the
person to whom the said officer is authorized to mail such process or a true copy thereof.
All other policy provisions shall remain the same.
Attached to and forming part of No. ZRU960720
ISSUED TO:
EFFECTIVE:
MTGL, Inc.
10/11/98
.d
ALL PURPOSE ACKNOWLEDGEMENT
State of California
County of Nevada
On March 17, 1999 before me, Joanna E. Weise, notary, personally appeared
Jamie Kilby personally known to me to be the person whose name is subscribed
to the within instrument and acknowledged to me that he/she executed the same
in his/her authorized capacity, and that by his/her signature on the instrument the
person, or the entity upon behalf of which the person acted, executed the
instrument.
WITNESS my hand and official seal.
Signature of Notary
JOANNA E. WEISE
V COMM. * 1179309
NOTARY PUBLIC-CALIFORNIAC)
NEVADA COUNTY Q
COMM. EXP, MAY 8, 2002
` COMMERCIAL LINES POLICY
COMMON POLICY DECLARATIONS -A Page 1 of 4
(CALIFORNIA)
GENERAL SECURITY INSURANCE COMPANY--5
Administrative Offices
2 World Trade Center
New York, New York 10048
POLICY NUMBER: CA401 2884
ITEM ONE NEW POLICY
NAMED INSURED PRODUCER
MTGL, INC. NETWORKED INSURANCE AGENTS
2992 E. LA PALMA AVE., STE A P. O. BOX 1367
ANAHEIM CA 92806 GRASS VALLEY CA 95945-1367
FORM OF BUSINESS: INDIVIDUAL
530-274-3102
PRODUCER CODE: 157
POLICY PERIOD: From: 10/1 1 /98 To: 10/11 /99
12:01 AM Standard Time at your mailing address shown above.
IN RETURN FOR THE PAYMENT OF THE PREMIUM, AND SUBJECT TO ALL THE TERMS OF THIS POLICY,
WE AGREE WITH YOU TO PROVIDE THE INSURANCE AS STATED IN THIS POLICY.
ITEM TWO
SCHEDULE OF COVERAGES AND COVERED AUTOS
This policy provides only those coverages where a charge is shown in the premium column below. Each of these
coverages will apply only to those "autos" shown as covered "autos". "Autos" are shown as covered "autos" for
a particular coverage by the entry of one or more of the symbols from the Covered Auto Section of the Business
Auto Coverage Form next to the name of the coverage.
COVERAGES
COVERED AUTOS
LIMIT
PREMIUM
Entry of one or more symbols
The Most we will pay for
from the covered autos section
any one accident or loss.
of the business auto coverage
form shows which autos are
covered autos.
LIABILITY
2 8 9
$ 1,000,000
$ 6,750
AUTO MEDICAL
PAYMENTS
2
$ 5,000
$ 858
UNINSURED
MOTORISTS
2
$ 1,000,000
$ 552
PHYSICAL DAMAGE
Actual cash value or cost of repair,
COMPREHENSIVE
7
whichever is less, minus 500
deductible �uto.
$ 1,569
COVERAGE
for covered
PHYSICAL DAMAGE
Actual cash value oncost of repair,
COLLISION
7
whicheveris minus I
$ 3,046
COVERAGE
for each coveredut5o00
PREMIUM FOR
ENDORSEMENTS
$ 80
TOTAL PREMIUM
$ 12,855
7.
u w-a I-- QL - IVU U/ 1111J LJUM y. 1
CA 00 01 06 92, IL 00 17 11 85, IL 02 70 02 94, CA 01 43 10 91, CA 99 03 06 92, CA 21 54 09 93 X��
These declarations and the common policy declarations, if applicable, together with the common policy conditions, coverage form(s) and forms and
endorsements, if any, issued to form a part thereof, complete the above numbered policy. C 1,
JDL 193 (CAL) (6-97) AGENT COPY Issued Date: OCT 28 98
J Page 2 of 4
POLICY NUMBER: CA401 2884
BUSINESS AUTO COVERAGE FORM DECLARATIONS (Continued)
ITEM THREE
SCHEDULE OF COVERED AUTOS YOU OWN
Covered
Auto #
Yr. Model/Trade Name/Serial #
Vehicle ID#
Original
Cost New
Town & State where
Auto Will Be Garaged
1
90
FORD
RANGER 7309
11,951
ANAHEIM,
92806
2
95
FORD
F150 6134
22,001
ANAHEIM,
92806
3
96
FORD
F150 6600
23,989
ANAHEIM,
92806
4
97
FORD
F250 6909
24,222
ANAHEIM,
92806
5
97
FORD
EXPLORER 5887
27,381
ANAHEIM,
92806
Covered
Auto #
Radius
Business Use:
Service
Commercial
Retail
Size
GVW
Age
Group
Primary
Rating
Factor
Liability
Primary
Rating
Factor
PhyDam.
Secondary
Rating
Factor
Code
1
LOCAL
SERVICE
LIGHT
6
1.00
1.00
01499
2
LOCAL
SERVICE
LIGHT
5
1.00
1.00
01499
3
LOCAL
SERVICE
LIGHT
4
1.00
1.00
01499
4
LOCAL
SERVICE
LIGHT
3
1.00
1.00
01499
5
LOCAL
SERVICE
LIGHT
3
1.00
1.00
01499
Covered
AUTO LIABILITY
AUTO MEDICAL PAYMENTS
Auto #
Limit
Premium
Limit
Premium
1
1,000,000
1,125
5,000
143
2
1,000,000
1,125
5,000
143
3
1,000,000
1,125
5,000
143
4
1,000,000
1,125
5,000
143
5
1,000,000
1,125
5,000
143
Total Premium
Business Auto Coverages Form Declarations (Continued)
Physical Damage -Comprehensive and Collision Deductibles and Premiums
Absence of a deductible entry in any column below means that the deductible entry in the corresponding
ITEM TWO column applies instead.
Covered
COMPREHENSIVE
COLLISON
LIENHOLDER
Auto #
Deductible
Premium
Deductible
Premium
Physical Damage Loss Is Payable To You And The toss Payee
Named Below As Interests May Appear At The Time Of The Loss.
1
500
89
500
194
2
500
200
500
392
3
500
226
500
444
4
500
266
500
522
5
500
394
500
747
Total Premium
JDL 193 (CAL) (6-97) AGENT COPY Issued Date: OCT 28 98
IO . Page 3 of 4
POLICY NUMBER: CA401 2884
BUSINESS AUTO COVERAGE FORM DECLARATIONS (Continued)
ITEM THREE
SCHEDULE OF COVERED AUTOS YOU OWN
Covered
Auto#
Yr. Model/Trade Name/Serial #
Vehicle ID#
Original
Cost New
Town & State where
Auto Will Be Garaged
6
99 FORD F250 4505
29,809
ANAHEIM, 92806
Covered
Auto #
Radius
Business Use:
Service
Commercial
Retail
Size
GVW
Age
Group
Primary
Rating
Factor
Liability
Primary
Rating
Factor
PhyDam.
Secondary
Rating
Factor
Code
6
LOCAL
SERVICE
LIGHT
1
1.00
1.00
014
Covered
Auto #
AUTO LIABILITY
AUTO MEDICAL PAYMENTS
Limit
Premium
Limit
Premium
6
1,000,000
1,125
5,000
143
Total Premium
6,750
858
ousmess auto t.overages rorm ueciararions tt.onanueal
Physical Damage- Comprehensive and Collision Deductibles and Premiums
Absence of a deductible entry in any column below means that the deductible entry in the corresponding
ITEM TWO column applies instead.
Covered
Auto #
COMPREHENSIVE
COLLISON
LIENHOLDER
Deductible
Premium
Deductible
Premium
Physical Damage Loss is Payable To You And The Loss Payee
Named Below As Interests May Appear At The Time Of The Loss.
6
500
394
500
747
Total Premium
1,569
3,046
JDL 193 (CAL) (6-97) AGENT COPY Issued Date: OCT 28 98
Page 4 of 4
POLICY NUMBER: CA401 2884
BUSINESS AUTO COVERAGE FORM DECLARATIONS (Continued)
ITEM FOUR
SCHEDULE OF HIRED OR BORROED COVERED AUTO COVERAGE AND PREMIUMS
LIABILITY COVERAGE - RATING BASIS, COST OF HIRE
State
Estimated Cost of Hire
Rates Per Each $100
Cost of Hire
Factor (If Liability
Coverage is Primary)
Total Premium
40
Cost of hire means the total amount you incur for the hire of "autos" you don't own (not including "autos" you borrow
or rent from your partners or employees or their family members). Cost of hire does not include charges for services
performed by motor carriers of property or passengers.
PHYSICAL DAMAGE COVERAGE
Coverages
Limit of Insurance
Most We Will Pay, Deductible
Estimated
Annual Cost of Hire
Rate Per Each $100
Annual Cost of Hire
Premium
COMPREHENSIVE
Actual Cash Value, Cost of Repair, or
Whichever is less,
Minus Deductible for
Each Covered Auto,
But No Deductible Applies to Loss
Caused by Fire or Lightning
COLLISION
Actual Cash Value, Cost of Repair, or
Whichever is less,
Minus Deductible for
Each Covered Auto,
ITEM FIVE
SCHEDULE FOR NON -OWNERSHIP LIABILITY
Named Insured Business
Rating Basis
Number
Premium
Other than a Social Service Agency
Number of Employees/Partners
40
Social Swervice Agency
Number of Employees/Partners
JDL 193 (CAL) (6-97) AGENT COPY Issued Date: OCT 28 98
ALL PURPOSE ACKNOWLEDGEMENT
State of California
County of Nevada
On March 31, 1999 before me, Joanna E. Weise, notary, personally appeared
Danielle Rubino personally known to me to be the person whose name is
subscribed to the within instrument and acknowledged to me that he/she
executed the same in his/her authorized capacity, and that by his/her signature
on the instrument the person, or the entity upon behalf of which the person
acted, executed the instrument.
ITNESS my hand and official seal.
I (seal)
Signature of Notary
r
JOANNA E. WEISE
Q
COMM. # 1179309
•PUBLIC•CALIFORNIA�
NOTARY
NEVADA COUNTY n
COMM. EXP. MAY 8, 2002 •a
LUMBERMENS MUTUAL CASUALTY COMPANY (LMC)
X AMERICAN MOTORISTS INSURANCE COMPANY (AMIGO)
AMERICAN MANUFACTURERS MUTUAL INSURANCE COMPANY (AMM)
IVEMMRe
BUSINESSOWNERS SPECIAL POLICY DECLARATIONS
COMMISSION PERCENTAGE NAME CODE MONT
20.0 $1,785.00 DIRECT BILL
POLICY NUMBER:
7JW 305 968-00
1. NAMED INSURED AND MAILING ADDRESS:
MONTANA TESTING & GEOTECHNICAL INC
2992 E LA PALMA AVE STE A
ANAHEIM CA 92806
2. THE NAMED INSURED IS: CORPORATION
3. POLICY PERIOD: FROM 02/11/99 TO 02/11/00
12:01 A.M. Standard Time at your mailing address above.
PRIOR POLICY NUMBER: NEW
4. IN RETURN FOR THE PAYMENT OF THE PREMIUM, AND SUBJECT TO ALL THE TERMS OF THIS
POLICY, WE AGREE WITH YOU TO PROVIDE THE INSURANCE AS STATED IN THIS POLICY.
5. POLICY FORMS AND ENDORSEMENTS ATTACHED AT INCEPTION:
BP7000 (ED. 05-91) BUSINESSOWNERS POLICY JACKET
BP7104 (ED. 04-96) BUSINESSOWNERS SPECIAL PROPERTY COVERAGE FORM
BP7168 (ED. 04-97) BUSINESSOWNERS AMENDATORY ENDORSEMENT
BP7108 (ED. 04-96) BUSINESSOWNERS LIABILITY COVERAGE FORM
BP7110 (ED. 04-96) BUSINESSOWNERS COMMON POLICY CONDITIONS
BP8603 (ED. 10-90) TRANSFER OF RIGHTS OF RECOVERY
AGAINST OTHERS TO US
PARAGRAPH 5 CONTINUED ON NEXT PAGE
6. PREMIUM FOR THE POLICY: $ 1,785.00
TOT
AL AMOUNT DUE FOR THE POLICY: $ 1,785.00
PRODUCER INFORMATION:
NETWORKED INS AGENTS COUNTERSIG T"�
988 MCCOURTNEY RD STE B
R ,
GRASS VALLEY CA 95949
52-2606 916-274-3102-
Date:
fh
BP 70 02 (Ed. 04 96) Page 1 Printed in U.S.A.
AGENT-PY
i
PO`iICY F.PRMS AND ENDORSEMENTS ATTACHED AT INCEPTION: (CONTINUED)
BP8662 (ED. 09-96) ARCHITECTS AND ENGINEERS PROGRAM
ENDORSEMENT
IL7025 (ED. 08-97) CALIFORNIA CHANGES - CANCELLATION AND NONRENEWAL
BP 70 02 (Ed. 04 96) Page 1A Printed in U.S.A.
DECLARATIONS (CONTINUED) POLICY NO. 7JW„ 305 96$-00
DESIGNATED PREMISES, BUSINESS OF NAMED INSURED AT DESIGNATED PREMISES AND
COVERAGES APPLICABLE THERETO:
PREM. 001 BLDG. 001
2992 E LA PALMA AVE STE A
ANAHEIM ORANGE CA 92806
OFFICES - GENERAL_
PROPERTY COVERAGES
DEDUCTIBLE (Where Applicable) $ 250
BUILDING NOT COVERED
LIMIT OF INSURANCE
AUTOMATIC INCREASE -- BUILDING 5.0% (ON,A PRO RATA BASIS DURING THE POLICY TERM).
BUSINESS PERSONAL PROPERTY
LIMIT OF INSURANCE $ 300,000
BUSINESS INCOME AND EXTRA EXPENSE ACTUAL LOSS SUSTAINED
NOT EXCEEDING 12 CONSECUTIVE MONTHS
SCHEDULE OF COVERAGE EXTENSIONS FOR PREMISES AS DESIGNATED ABOVE.
COVERAGE EXTENSIONS LIMIT OF INSURANCE
MUNtY ANU Nt -Uta I Its $ 10,000 INSIDE I HL PREMISES
$ 5,000 OUTSIDE THE PREMISES
ACCOUNTS RECEIVABLE $ 25,000
VALUABLE PAPERS $ 500,000
BUSINESS ELECTRONIC EQUIPMENT $ 35,000
SCHEDULE OF OPTIONAL COVERAGES FOR PREMISES AS DESIGNATED ABOVE.
OPTIONAL COVERAGES LIMIT OF INSURANCE
ORDINANCE OR LAW $100,000 INCLUDED
BOILER AND MACHINERY INCLUDING $25,000 INCLUDED
BUSINESS INCOME AND EXTRA EXPENSE
BP 70 02 (Ed. 04 96) Page 2. 1 Printed in U.S.A.
DECLARATIONS (CONTINUED) POLICY NO. 7JW 305 968-00
ADDITIONAL INSURED - BY CONTRACT, AGREEMENT OR PERMIT
MORTGAGEE
LOSS PAYEE OR LENDER'S LOSS PAYABLE
Name and Address Description of Property Form Applicable
BP 70 02 (Ed. 04 96) Y Page 3. 1 Printed in U.S.A.
DECLARATIONS (CONTINUED) POLICY NO. 7JW 305 968-00
THETOLICY INCLUDES THE FOLLOWING COVERAGE EXTENSIONS FOR THE POLICY DESIGNATED
ABOVE.
COVERAGE EXTENSIONS LIMIT OF INSURANCE
BUSINESS PERSONAL PROPERTY
OFF PREMISES $ 25,000
FORGERY AND ALTERATION $ 10,000
MONEY ORDERS AND COUNTERFEIT CURRENCY $ 10,000
BUSINESS LIABILITY COVERAGE AND MEDICAL EXPENSES COVERAGE
Except for Fire Legal Liability, each paid claim for the following coverages reduces the amount of insurance
we provide during the applicable annual period.
BUSINESS LIABILITY AND MEDICALEXPENSES
LIMIT OF INSURANCE $ 1, 000, 000 ANYONE OCCURRENCE
$ 10,000 PER PERSON MEDICAL EXPENSES
GENERAL AGGREGATE LIMIT (OTHER THAN
PRODUCTS -- COMPLETED OPERATIONS) $ 2,000,000
PRODUCTS -- COMPLETED OPERATIONS
AGGREGATE $ 2,000,000
FIRE LEGAL LIABILITY
LIMIT OF INSURANCE $ 100, 000 ANYONE FIRE, LIGHTNING,
SPRINKLER LEAKAGE, OR
EXPLOSION
SCHEDULE OF OPTIONAL COVERAGES FOR THE POLICY AS DESIGNATED ABOVE.
OPTIONAL COVERAGES LIMIT OF INSURANCE
HIRED AUTO AND NON -OWNED AUTO $_ 1,000,000 ANY ONE OCCURRENCE
AGGREGATE LIMIT DOES NOT APPLY
ARCHITECTS AND ENGINEERS PROGRAM
ENDORSEMENT
TRANSFER OF RIGHTS OF RECOVERY
AGAINST OTHERS TO US
BP 70 02 (Ed. 04 96) Page 4 Printed in U.S.A.
MEMPeRe
BUSINESSOWNERS SPECIAL PROPERTY
Includes copyrighted material of the Insurance Services Office with its permission.
BP 71 04 (Ed. 04 96) i Printed in U.S.A.
TABLE OF CONTENTS
BUSINESSOWNERS SPECIAL POLICY
Page
BUSINESSOWNERS SPECIAL PROPERTY COVERAGE FORM -- BP 71 04
A. Coverage 1
1. Covered Property 1
2. Business Income and Extra Expense 2
3. Property Not Covered 3
4. Covered Causes of Loss 4
5. Limitations 4
6. Additional Coverages 5
7. Coverage Extensions 7
B. Exclusions 14
C. Limits of Insurance 17
D. Deductibles 18
E. Property Loss Conditions
18
1. Abandonment
18
2. Appraisal
18
3. Duties in the Event of Loss or Damage
19
4. Legal Action Against Us
19
5. Limitation -- Electronic Media and Records
19
6. Loss Payment
20
7. Recovered Property
22
8. Resumption of Operations
22
9. Vacancy
23
F. Property General Conditions
23
1. Control of Property
23
2. Mortgage Holders
23
3. No Benefit to Bailee
24
4. Policy Period, Coverage Territory
24
G. Optional Coverages 24
1. Employee Dishonesty 24
2. Spoilage 25
3. Earthquake 27
4. Sprinkler Leakage -- Earthquake 28
5. Water Damage (Sewers and Drains) 28
BP 71 04 (Ed. 04 96) ii Printed in U.S.A.
H. Property Definitions
1. "Computer Virus"
2. "Electrical Disturbance"
3. "Electronic Data Processing Equipment"
4. "Electronic Media and Records"
5. "Money
6. "Operations"
7. "Period of Restoration"
8. "Perishable Stock"
9. "Pollutants"
10. "Power Supply Disturbance"
11 "Securities"
12. "Specified Causes of Loss"
BUSINESSOWNERS LIABILITY COVERAGE FORM -- BP 71 08
A. Coverages
1. Business Liability
2. Medical Expenses
B. Exclusions
1. Applicable to Business Liability Coverage
2. Applicable to Medical Expenses Coverage
3. Applicable to both Business Liability Coverage and
Medical Expenses Coverage -- Nuclear Energy Liability Exclusion
C. Who Is An Insured
D. Liability and Medical Expenses Limits of Insurance
E. Liability and Medical Expenses General Conditions
1. Bankruptcy
2. Duties in the Event of Occurrence, Offense, Claim or Suit
3. Financial Responsibility Laws
4. Legal Action Against Us
5. Separation of Insureds
F. Optional Coverages
1. Additional Insureds -- By Contract, Agreement or Permit
2. Hired Auto and Non -Owned Auto Liability
3. Additional Insured -- Lessor of Leased Equipment
4. Additional Insured -- Grantor of Franchise
Page
29
29
29
29
29
29
29,
29
29
29
30
30
30
1
1
2
2
2
8
9
10
12
13
13
13
13
14
14
14
14
14
16
16
BP 71 04 (Ed. 04 96) iii Printed in U.S.A.
G. Liability and Medical Expenses Definitions
1. "Advertising Injury"
2. "Auto"
3. "Bodily Injury"
4. "Coverage Territory"
5. "Employee"
6. "Executive Officer"
7. "Impaired Property"
8. "Insured Contract'
9. "Leased Worker"
10. "Loading or Unloading'
11. "Mobile Equipment"
12. "Occurrence"
13. "Personal Injury"
14. "Products -Completed Operations Hazard"
15. "Property Damage"
16. "Suit"
17. "Temporary Worker"
18. "Your Advertising Activities"
19. "Your Product'
20. "Your Work"
16
16
17
17
17
17
17
17
17
18
18
18
19
19
19
20
20
20
20
20
20
BP 71 04 (Ed. 04 96)
IV Printed in U.S.A.
1
Page
BUSINESSOWNERS
COMMON POLICY CONDITIONS -- BP 71 10
A.
Cancellation
1
B.
Changes
2
C.
Concealment, Misrepresentation or Fraud
2
D.
Examination of Your Books and Records
2
E.
Inspections and Surveys
2
F.
Insurance Under Two or More Coverages
2
G.
Liberalization
2
H.
Other Insurance -
2
I.
Premiums
3
J.
Transfer of Rights of Recovery Against Others to Us
3
K.
Transfer of Your Rights and Duties Under This Policy
4
BP 71 04 (Ed. 04 96) v
Printed in U.S.A.
MEMPER.
BUSINESSOWNERS SPECIAL PROPERTY
Various provisions in this policy restrict coverage. Read the entire policy carefully to 'determine rights , du-
ties 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 a) Fire extinguishing equipment;
We will pay for direct physical loss of or dam- b) Outdoor furniture;
age to Covered Property at the premises de-
scribed in the Declarations caused by or result- c) Floor coverings; and
ing from any Covered Cause of Loss.
d) Appliances used for refrigerat-
1. Covered Property ing, ventilating, cooking, dish-
washing or laundering;
Covered Properly, as used in this policy,
means the type of property as described in 6) If not covered by other insurance:
this section, A.1., and limited in A.3., Prop-
erty Not Covered, if a Limit of Insurance is a) Additions under construction,
shown in the Declarations for that type of alterations and repairs to the
property. buildings or structures;
a. Buildings, meaning the buildings and b) Materials, equipment, supplies
structures at the premises described in and temporary structures on
the Declarations, including: or within 1,000 feet of the
premises described in the
1) Completed additions; Declarations, used for making
additions, alterations or repairs
2) Permanently installed:
a) Machinery; and
b) Equipment
3) Your personal properly in apart
merits or rooms furnished by you
as landlord;
4) Fixtures, including outdoor fix
to res;
5) Personal property owned by you
that is used to maintain or service
the buildings or structures or the
premises, including:
to the buildings or structures;
c) Radio or television antennae
or satellite dishes including:
i. Lead-in wiring and masts;
H. Guy wires;
iii. Above and below ground
foundations;
iv. Any other property that is
permanently attached to
such structures.
BP 71 04 (Ed. 04 96) Page 1 of 30 Printed in U.S.A.
b. Business Personal Property located
(or in a vehicle) within 1,000 feet,
in or on the buildings at the premises
caused by or resulting from any
described in the Declarations or in the
Covered Cause of Loss.
open (or in a vehicle) within 1,000
feet of the premises described in the
We will only pay for loss of Busi-
Declarations, including:
ness Income that you sustain dur-
ing the "period of restoration" and
1) Property you own that is used in
that occurs within 12 consecutive
your business; and
months after the date of direct
physical loss or damage.
2) Property of others that is in your
care, custody or control; but this
Business Income means the:
property is not covered for more
than the amount for which you
a) Net Income (Net Profit or
are legally liable, plus the cost of
Loss before income taxes) that
labor, materials or services fur-
would have been earned or
nished or arranged by you on per-
incurred if no physical loss or
sonal property of others;
damage had occurred, but
not including any Net Income
3) Tenant's improvements and bet-
that would likely have been
terments. Improvements and bet-
earned as a result of an in-
terments are fixtures, alterations,
crease in the volume of busi-
installations or additions:
ness due to favorable business
conditions caused by the im-
a) Made a part of the building or
pact of the Covered Cause of
structure you occupy but do
Loss on customers or on other
not own; and
businesses; and
b) You made or acquired at your
b) Continuing normal operating
expense but cannot legally
expenses incurred, including
remove; and
payroll.
4) Leased personal property for
2) Extended Business Income. We
which you have a contractual re-
will pay for the actual loss of Busi-
sponsibility to insure, unless oth-
ness Income you incur during the
erwise provided for under Para-
period that:
graph A.1.b. 2).
a) Begins on the date property
2. Business Income and Extra Expense
(except finished stock) is ac-
Wally repaired, rebuilt or re -
Unless coverage for Business Income and
placed and 'operations" are
Extra Expense is indicated in the Declara-
resumed; and
tions as not being covered, the following
coverage applies:
b) Ends on the earlier of:
a. Business Income
i. The date you could re-
store your 'operations"
1) We will pay for the actual loss of
with reasonable speed, to
Business Income you sustain due
the condition that would
to the necessary suspension of
have existed if no direct
your 'operations" during the
physical loss or damage
"period of restoration." The sus-
had occurred; or
pension must be caused by direct
physical loss of or damage to
ii. 30 consecutive days after
property at the premises de-
the date determined in a)
scribed in the Declarations, includ-
above.
ing personal property in the open
BP 71 04 (Ed. 04 96) Page 2 of 30
Printed in U.S.A.
Loss of business income must be
We will only pay for Extra Expense
caused by direct physical loss or
that you sustain during the "period of
damage at the premises described
restoration" and that occurs within 12
in the Declarations caused by or
consecutive months after the date of
resulting from any Covered Cause
direct physical loss or damage. This
of Loss.
Coverage is not subject to the Limits of
Insurance.
b. Extra Expense
c.
Civil Authority
1) We will pay necessary Extra Ex-
pense you incur during the
We will pay for the actual loss of Busi-
"period of restoration" that you
ness Income you sustain and necessary
would not have incurred if there
Extra Expense caused by action of civil
had been no direct physical loss
authority that prohibits access to the
or damage to property at the
premises described in the Declarations
premises described in the Decla-
due to direct physical loss of or dam -
rations, including personal prop-
age to property, other than at the
erty in the open ( or in a vehicle)
premises described in the Declara-
within 1,000 feet, caused by or
tions, caused by or resulting from any
resulting from a Covered Cause of
Covered Cause of Loss.
Loss.
This coverage will apply for a period
2) Extra Expense means expense in-
of up to three consecutive weeks from
curred:
the date of that action.
a) To avoid or minimize the sus-
The definitions of Business Income
pension of business and to
and Extra Expense contained in the
continue "operations":
Business Income and Extra Expense
Coverages also apply to this Civil
i. At the premises described
Authority Coverage. The Civil Authority
in the Declarations; or
Coverage is not subject to the Limits of
Insurance.
ii. At replacement premises
or at temporary locations, 3.
Property Not Covered
including relocation ex-
penses, and costs to
Covered Property does not include:
equip and operate the
replacement or tempo-
a.
Aircraft, autOrhobiles, motortrucks and
rary locations.
other vehicles subject to motor vehicle
registration;
b) To minimize the suspension of
business if you cannot con-
b.
Contraband, or property in the course
time 'operations."
of illegal transportation or trade;
c) i. To repair or replace any
c.
Land (including land on which the
property; or
property is located), water, growing
crops or lawns,
ii. To research, replace or
restore the lost informa-
d.
Outdoor fences, trees, shrubs or
tion on damaged valuable
plants, all except as provided in the
papers and records;
Coverage Extension;"
to the extent it reduces the
e.
Watercraft '(including motors, equip -
amount of loss that otherwise
ment and accessories) while afloat.
would have been payable under
this Coverage or Coverage 2.a.,
f.
"Money" and "securities" except as
Business Income.
provided in the Coverage Extensions.
BP 71 04 (Ed. 04 96) Page 3 of 30
Printed in U.S.A.
4. Covered Causes of Loss
b. We will not pay for loss of or damage
to fragile articles such as glassware,
RISKS OF DIRECT PHYSICAL LOSS are
statuary, marbles, chinaware and por-
covered causes of loss unless the loss is:
celains, if broken, unless caused by
the "specified causes of loss" or build -
a. Excluded in Section B., EXCLUSIONS;
ing glass breakage. This restriction does
or
not apply to:
b. Limited in Paragraph A.5., Limitations
1) Glass that is part of the interior or
exterior of a building or structure;
that follow.
2) Containers of property held for
5. Limitations
sale; or
a. We will not pay for lossofor damage
3) Photographic or scientific instru-
to:
ment lenses.
1) Steam boilers, steam pipes, steam
c. For loss or damage by theft, the follow -
engines or steam turbines caused
ing types of property are covered only
by or resulting from any condition
up to the limits shown:
or event inside such equipment,
except as provided in the Cover-
1) $2,500 for furs, fur garments and
age Extension for Boiler and Ma-
garments trimmed with fur.
chinery. But we will pay for loss of
or damage to such equipment
2) $2,500 for jewelry, watches,
caused by or resulting from an
watch movements, jewels, pearls,
explosion of gases or fuel within
precious and semi-precious
the furnace of any fired vessel or
stones, bullion, gold, silver, plati-
within the flues or passages
num and other precious alloys or
through which the gases of com-
metals. This limit does not apply to
bustion pass.
jewelry and watches worth $250
or less per item.
2) Hot water boilers or other water
heating equipment caused by or
3) $2,500 for patterns, dies, molds
resulting from any condition- or
and forms.
event inside such boilers or
equipment, other than an explo-
4) $250 for stamps, tickets, including
sion, except as provided in the
lottery tickets held for sale, and
Coverage Extension for Boiler and
letters of credit.
Machinery.
d. Pets and animals are covered only:
3) Property that is missing, but there
is no physical evidence to show
1) If they are killed, or their destruc-
what happened to it, such as
tion is made necessary because of
shortage disclosed on taking in-
loss or damage caused by any of
ventory. This limitation does not
the "specified causes of loss"; or
apply to the Coverage Extension
for "Money" and "Securities."
2) For loss or damage by theft,
4) Property that has been transferred
provided loss or damage occurs while
to a person or to a place outside
they are inside the building described
the premises described in the
in the Declarations and such pets and
Declarations on the basis of unau-
animals are owned by others and
thorized instructions.
boarded by you, or owned by you
and held for sale or sold but not de-
livered.
BP 71 04 (Ed. 04 96) Page 4 of 30 Printed in U.S.A.
6. Additional Coverages
a. Customers' Goods On Premises
We will pay for direct physical loss or
damage to Customers' Goods On
Premises caused by or resulting from a
Covered Cause of Loss, without regard
to legal liability, provided that the
customers' goods are:
1) In your care, custody or control;
and
2) ` Located in or on the building de-
scribed in the Declarations or in
the open (or in a vehicle) within
1,000 feet of the premises de-
scribed in the Declarations.
However, payment for loss of or dam-
age to customers' goods will be to the
owner of the property.
The most we will pay for loss or dam-
age in any one occurrence for Cus-
tomers' Goods On Premises is
$10,000.
b. Debris Removal
We will pay your expense to remove
debris of Covered Property caused by
or resulting from a Covered Cause of
Loss that occurs during the policy pe-
riod. The expenses will be paid only if
they are reported to us in writing
within 180 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 under this Addi-
tional Coverage is 25% of:
1) The amount we pay for the direct
physical loss of or damage to
Covered Property; plus
2) The deductible in this policy ap-
plicable to that loss or damage.
But if:
1) The sum of direct physical loss or
damage and debris removal ex-
pense exceeds the Limit of Insur-
ance; or
2) The debris removal expense ex-
ceeds the amount payable under
the 25% Debris Removal coverage
limitation above, then
we will pay up to an additional
$10,000 for each location in any one
occurrence under this Debris Removal
Additional Coverage.
This Additional Coverage does not
apply to costs to:
1) Extract "pollutants" from land or
water; or
2) Remove, restore or replace pol-
luted land orwater.
c. Preservation of Property
If it is necessary to move Covered
Property from the premises described
in the Declarations to preserve it from
loss or damage by a Covered Cause of
Loss, we will pay for any direct physi-
cal loss of or damage to that property:
1) While it is being moved or while
temporarily stored at another lo-
cation; and
2) Only if the loss or damage occurs
within 45 days after the property
is first moved.
d. Fire Department Service Charge
When the fire department is called to
save or protect Covered Property from
a Covered Cause of Loss, we will pay
up to $15,000 for your liability for fire
department servicecharges:
1) Assumed by contract or agree-
ment prior to loss; or
2) Required by local ordinance.
BP 71 04 (Ed. 04 96) Page 5 of 30
Printed in U.S.A.
e. Collapse
b) The collapse was caused by a
cause of loss listed in e. 1) a)
1) We will pay for direct physical loss
through e. 1) f) above.
of or damage to Covered Prop-
erty, caused by collapse of a
3) With respect to the following
building insured under this policy,
property:
if the collapse is caused by one or
more of the following:
a) Awnings;
a) The "specified cause of loss"
b) Gutters and downspouts;
or breakage of building glass,
all only as insured against in
c) Yard fixtures;
this. policy;:.. ,
d) Outdoor swimming pools;
b) Hidden decay;
e) Piers, wharves and docks;
c) Hidden insect or vermin dam-
age;
f) Beach or diving platforms or
appurtenances;
d) Weight of people or personal
property;
g) Retaining walls; and
e) Weight of rain that collects on
h) Walks, roadways and other
a roof;
paved surfaces;
f) Use of defective material or
if the collapse is caused by a
methods in construction, re-
cause of loss listed in e. 1) b)
modeling or renovation if the
through e. 1) f), we will pay for
collapse occurs during the
loss or damage to that property
course of the construction,
only if such loss or damage is a di -
remodeling or renovation.
rect result of the collapse of a
However, if the collapse oc-
building insured under this policy
curs after construction, re-
and the property is Covered
modeling or renovation is
Property under this policy.
complete and is caused in
part by a cause of loss listed
4) Collapse does not include settling,
in e. 1) a) through e. 1) e), we
cracking, shrinkage, bulging or ex -
will pay for the loss or dam-
pansion.
age even if use of defective
material or methods in con-
f. Water Damage, Other Liquids,
struction, remodeling or reno-
Powder or Molten Material Damage
vation contributes to the col-
lapse.
If loss or damage caused by or result-
ing from a covered water or other liq-
2) If the direct physical loss or dam-
uid, powder or molten material dam-
age does not involve collapse of a
age loss occurs, we will also pay the
building or any part of a building,
cost to tear out and replace any part
we will pay for loss or damage to
of the building or structure to repair
Covered Property caused by the
damage to the system or appliance
collapse of personal property only
from which the water or other sub -
if:
stance escapes.
a) The personal property which
We will not pay the cost to repair any
collapses is inside a building
defect that caused the loss or damage;
insured under this policy; and
but we will pay the cost to repair or
replace damaged parts of fire extin-
guishing equipment if the damage:
BP 71 04 (Ed. 04 96) Page 6 of 30
Printed in U.S.A.
1) Results in discharge of any sub-
stance from an automatic fire
protection system; or
2) Is directly caused by freezing.
g. Pollutant Clean Up and Removal
We will pay your expense to extract
"pollutants" from land or water at the
premises described in the Declarations
if the discharge, dispersal, seepage,
migration, release or escape of the
"pollutants" is caused by or results from
a Covered Cause of Loss that occurs
during the policy period. The expenses
will be paid only if they are reported
to us in writing within 180 days of the
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 this Additional Coverage is
$10,000 for the sum of all such ex-
penses arising out of Covered Causes
of Loss occurring during each separate
12 month period of this policy.
h. Arson Reward
We will pay a reward of $10,000 for
information leading to an arson con-
viction in connection with a covered
fire or explosion loss. This is the most
we will pay for any one occurrence
under this policy or any combination
of policies.
The amount payable under this Addi-
tional Coverage is in addition to the
Limits of Insurance.
7. Coverage Extensions
In addition to the Limits of Insurance, you
may extend the insurance provided by this
policy as provided below.
Extensions 7.f. and 7.g. apply only to prop-
erty located in or on the building de-
scribed in the Declarations or in the open
(or in a vehicle) within 1,000 feet of the
premises described in the Declarations.
a. Newly Acquired or Constructed
Property
The insurance under this Extension will
be in addition to the applicable
Building or Business Personal Property
Limits of Insurance.
1) You may extend the insurance
that applies to Buildings to apply
to:_
a) Your new buildings or build-
ing additions while being built
on the premises described in
the Declarations; and
b) Buildings you acquire at loca-
tions, other than the premises
described in the Declarations,
intended for:
i. Use similar to that of the
building described in the
Declarations; or
ii. Use as a warehouse for
your Covered Property.
The most we will pay for loss or
_ damage under this Extension is
$250,000 at each location.
2) You may extend the insurance
that applies to Business Personal
Property to apply to that property
at any location you acquire.
The most we will pay for loss or
damage under this Extension is
$100,000 at each location.
3) Insurance under this Extension for
each newly acquired or con-
structed property, will end when
any of the following first occurs:
a) This policy expires;
b) 90 days after you acquire or
beginto construct the prop-
erty; or
c) You report values to us.
BP 71 04 (Ed. 04 96) Page 7 of 30
Printed in U.S.A.
We will charge you additional pre-
mium for values reported from the
date construction begins or you ac-
quire the property.
b. Off Premises
1) You may extend the insurance
that applies to Buildings to apply
to that property while removed
from the premises described in
the Declarations for the purposes
of cleaning, repairing, reconstruc-
tion or restoration.
The most we will pay for loss or
damage in any one occurrence
under this Extension is $5,000.
2) Insurance under this Extension
does not apply to any property on
any premises you own, lease, op-
erate or control.
c. Business Personal Property Off
Premises
You may extend the insurance that
applies to Business Personal Property
to apply to such property, other than
"money and "securities," while in the
course of transit and more than 1,000
feet from the premises described in
the Declarations or temporarily at your
home or at a premises you do not
own, lease, or operate.
Property while in the course of transit
must be in or on, but not permanently
attached or installed in, a motor vehi-
cle you own, lease, or operate while
between points in the coverage terri-
tory.
This Extension does not apply to prop-
erty:
1) Rented or leased to others;
2) After delivery to customers; or
3) At a premises for more than 60
consecutive days.
The most we will pay under this Ex-
tension is the Limit of Insurance shown
for Business Personal Property Off -
Premises in the Declarations or
$15,000, whichever is greater.
d. Signs
The following provision applies to di-
rect physical loss of or damage to all
signs at the premises described in the
Declarations:
1) Owned by you; or
2) Owned by others but in your
care, custody or control
Section B., EXCLUSIONS, does not
apply to signs except for:
1) Paragraph B.1.b., Governmental
Action;
2) Paragraph B.1.c., Nuclear Hazard;
3) Paragraph B.1.e., War and Military
Action; and
4) Paragraph B.2.k., Maintenance
Types of Loss, subparagraphs 1),
2) and 6).
e. Glass
The following provision applies to di-
rect physical loss of or damage to all
glass, including all lettering, ornamen-
tation, and alarm tape located at the
premises described , in the Declara-
tions:
1) Owned by you; or
2) Owned by others but in your
care, custody or control.
We will also pay for necessary:
1) Expenses incurred to put up tem-
porary plates or board up open-
ings;
2) Repair or replacement of encasing
frames; and
3) Expenses incurred to remove or
replace obstructions.
BP 71 04 (Ed. 04 96) Page 8 of 30
Printed in U.S.A.
f. Personal Effects
institution, within your living
quarters or the living quarters of
You may extend the insurance that
your partners or any employee
applies to your Business Personal
having use and custody of the
Property to apply to physical loss of or
property, at the premises de -
damage to personal effects owned by
scribed in the Declarations, or in
you, your officers, your partners, or
transit between any of these
your employees. The most we will pay
places, resulting directly from:
for a loss or damage by a Covered
Cause- of Loss under this Coverage
a) Theft, meaning any act of
Extension is $2,500 at each described
stealing
premises.
b) Disappearance; or
g. Outdoor Property
c) Destruction.
You may extend the insurance pro-
vided by this policy to apply to direct
2) In addition to the Limitations and
physical doss of or damage to your
Exclusions applicable to property
outdoor fences, trees, shrubs and
coverage, we will not pay for loss:
plants including debris -removal ex-
penses. The most we will pay for loss
a) Resulting from accounting or
or damage by a Covered Cause of
arithmetical errors or omis-
Loss is $10,000 at each premises de-
sions;
scribed in the Declarations, but not
more than $1,000 for any one tree,
b) Due to the giving or surren-
shrub or plant.
dering of property in any ex-
change or .purchase; or
We will not pay for loss or damage to
outdoor, fences, trees, shrubs and
c) Of property contained in any
plants resulting from the following
money -operated device un-
causes of loss: windstorm or hail; ve-
less the amount of "money'
hicle; vandalism; disease.
deposited in it is recorded by
a continuous recording in-
h. Valuable Papers and Records -- Cost
strument in the device.
of Research
3) The most we will pay for loss in
You may extend the insurance that
any one occurrence is:
applies to Business Personal Property
to apply to your costs to research, re-
a) The lirnit shown in the Decla-
place or restore the lost information on
rations for Inside the Premises
lost or damaged valuable papers . and
for "money' and "securities"
records, including those which exist
while:
on electronic or magnetic media, for
which duplicates do not exist. The
1) In or on the premises de -
most we will pay under this Coverage
scribed in the Declara-
Extension is $15,000 at each de-
tions; or
scribed premises, while in transit, or
temporarily at your home or at a-
2) Within a bank or savings
premises you do not own, lease or
institution; and
operate, unless otherwise indicated in
the Declarations.
b) The limit shown in the Decla-
rations for Outside the Prem-
i. "Money" and "Securities"
ises for "money' and
"securities" while anywhere
1) We will pay for loss of "money'
else.
and "securities" used in your busi-
ness while at a bank or savings
BP 71 04 (Ed. 04 96) Page 9 of 30
Printed in U.S.A.
4) All loss:
a) Caused by one or more per-
sons; or
b) Involving a single act or series
of related acts
is considered one occurrence.
5) You must keep records of all
"money and "securities" so we can
verify the amount of any loss` or
damage.
j. Money Orders and Counterfeit Pa-
per Currency
You may extend the insurance pro-
vided by this policy to apply to:
1) The acceptance in good faith, in
exchange for merchandise, money
or services, of any post office or
express money order, issued or
claiming to have been issued by
any post office or express com-
pany, if the money order is not
paid upon presentation, or
2) The acceptance in good faith in
the regular course of business of
counterfeit United States or Ca-
nadian paper currency.
The most we will pay for any loss is
$10,000.
k. Forgery and Alteration
1) You may extend the insurance
provided by this policy to apply to
loss resulting directly from forgery
or alteration of, on or in any
check, draft, promissory note, or
similar written promise, order or
direction to pay a sum certain in
money, made or drawn by or
drawn upon you; or made or
drawn by one acting as your agent
or claiming to have been so made
or drawn, other than you or your
employees.
2) If you are sued for refusing to pay
the check, draft, promissory note,
or similar written promise, order
BP 71 04 (Ed. 04 96) Page 10 of 30
or direction to pay a sum certain
in money, on the grounds that it
has been forged or altered, and
you have our written consent to
defend against the suit, we will
pay any reasonable legal expenses
that you incur in that defense. The
amount we will pay for these legal
expenses will be a part of and not
in addition to the Limit of Insur-
ance applicable to the Forgery
and Alteration coverage.
The most we will pay for any loss is
$10,000.
1. Boiler and Machinery
1) We will pay for loss caused by the
following Causes of Loss:
a) Explosion of steam boilers,
electric steam generators,
steam pipes, steam engines or
steam turbines owned or
leased by you or operated
under your control;
b) Burning, bulging, cracking or
collapse of boilers and fired
or unfired pressure vessels
which are normally subject to
pressure other than static
pressure of contents;
c) Artificially generated electric
current, including electric
arcing, that disturbs electrical
devices, appliances or wires;
and
d) Mechanical breakdown, in-
cluding rupture or bursting
caused by centrifugal force.
2) In addition to the Limitations and
Exclusions applicable to property
coverage, we will not pay under
this Coverage Extension for loss or
damage:
a) Caused by or resulting from
an explosion of gases or fuel
within the furnace of any
boiler or fired vessel or within
the flues or passages through
which the gases of combus-
tion pass;
Printed in U.S.A.
b) To any data processing or
m. Business Electronic Equipment
word processing business
electronic equipment includ-
1) . You may extend the insurance
ing their component parts;
provided by this policy to apply to
direct physical loss of or damage
c) , To any machine or apparatus
to business electronic equipment
used for research, diagnosis,
caused by "electrical disturbance"
medication, surgical, theca-
or "power supply disturbance" if
pectic; dental or pathological
the cause of the occurrence took
purpose; or
place within 1,000 feet of a loca-
tion listed in the Declarations.
d) From spoilage or contamina-
tion.
2) Business electronic 'equipment is
the following described property
3) Suspension
while at the locations listed in the
Declarations, in transit, at any un-
Whenever -a boiler, pressure ves-
scheduled location for up to 60
sel, refrigeration or air conditioning
consecutive days, or duplicate
system, piping, mechanical or
"electronic rnedia and records"
electrical machine or apparatus is
(software) at unscheduled loca-
found to be in, or exposed to, a
tions:'
dangerous condition, any of our
representatives may immediately
a) "Electronic data processing
suspend the insurance provided
equipment" (hardware) own -
by this Coverage Extension for that
ed by you or in your care,
item. This can be done by deliver-
custody or control; and
ing or- mailing a written notice of
suspension to;
b) "Electronic media and rec-
ords" (software).
a) ..Your last Known address; or
The most we will pay for this Coverage
b) The address where the item is
Extension is $15,000, unless otherwise
located.
indicated in the Declarations.
If we suspend your insurance, you
3) If a "computer virus" is discovered
will get a pro rata refund of pre-
in your business electronic
mium. But the suspension will be
equipment during the policy pe-
riod, we will pay for the Extra Ex -
effective even if we have not yet
made or offered a refund.
pense you incur to extract that vi-
rus from your business electronic
4) Deductible
equipment, up to $5,000.
We will not pay for loss or dam-
n. Garages, Storage Buildings and
Other Appurtenant Structures
age in any one occurrence until
the amount of loss or damage ex-
You may extend the insurance that
ceeds $500. We will then pay the
applies to Building to apply to ga-
amount of loss or damage in ex-
rages, storage buildings and other ap-
cess of $500 up to the applicable
purtenant structures, except outdoor
Limit of Insurance.
fixtures, at the premises described in
the Declarations.
5) - Limit of Insurance
The most we will pay for loss or dam -
The most that we will pay under
age under this Extension is 10% of the
this Coverage Extension, including
Limits of Insurance for Building shown
Business Income and Extra Ex-
in the Declarations but not more than
pense, is $25,000, unless other-
$50,000 at each premises described in
wise indicated in the Declarations.
the Declarations.
BP 71 04 (Ed. 04 96) Page 11 of 30
Printed in U.S.A.
o. Accounts Receivable
1) You may extend the insurance
provided by this policy to apply
to:
a) All amounts due from your
customers that youareunable
to collect;
b) Interest charges on any loan
required to offset amounts
you are unable to collect
pending our payment of these
amounts;
c) Collection expenses in excess
of your normal collection ex-
penses that are made neces-
sary by the loss or damage;
and
d) Other reasonable expenses
that you incur to re-establish
your records of accounts re-
ceivable;
that result from direct physical loss
or damage to your records of ac-
counts receivable at the premises
described in the Declarations,
while in transit, or temporarily at
your home or at a premises you
do not own, lease or operate.
2) Paragraph AA., Covered Causes
of Loss and Section B., Exclusions,
do not apply to this Coverage Ex-
tension except for:
a) Paragraph B.1.b., Governmen-
tal Action;
b) Paragraph BA.c., Nuclear
Hazard; and
c) Paragraph B.1.e., War and
Military Action.
3) Additional Exclusions
We will not pay for loss of or
damage caused by or resulting
from:
a) Dishonest acts by you, any-
one else with an interest in
the accounts receivable, or
your or their employees or
authorized representatives, or
anyone entrusted with the re-
cords of accounts receivable,
whether or not acting alone
or in collusion with other per-
sons or occurring during the
hours of employment.
But this exclusion does not
apply to a carrier for hire.
b) Alteration, falsification, con-
cealment or destruction of re-
cords of accounts receivable
done to conceal the wrongful
giving, taking or withholding
of "money," "securities, or
other property.
This exclusion applies only to
the extent of the wrongful
giving, taking or withholding
of "money, "securities," or
other property.
c) Bookkeeping, accounting or
billing errors or omission.
d) Electrical or magnetic injury,
disturbance or erasure of
electronic recordings.
But we will pay for direct loss
or damage caused by light-
ning.
e) Voluntary parting with any
property by you or anyone
entrusted with the property if
induced to do so by any
fraudulent scheme, trick, de-
vice or false pretenses.
f) Unauthorized instructions to
transfer property to any per-
son or to any place.
4) We will not pay for loss or dam-
age that requires any audit of rec-
ords or any inventory computation
to prove its factual existence.
BP 71 04 (Ed. 04 96) Page 12 of 30 Printed in U.S.A.
The most that we will pay under this
3) We will not pay for increased
Coverage Extension is $25,000, unless
construction costs under this Cov-
otherwise indicated in the Declara-
erage Extension:
tions.
a) Until the property is actually
p. Ordinance or Law
repaired or replaced, at the
same premises or elsewhere;
1) ` If aCovered Cause of Loss occurs
and
to covered building property, we
will pay:
b) Unless the repairs or re-
placements are Trade as soon
a) For Loss or damage caused
as reasonably possible after
by enforcement of any law
-
the loss or damage, not to ex -
that:
ceed 2 years. We may extend
this period in writing during
i. Requires the demolition
the 2 years.
of parts of the same
property not damaged by
4) We will not pay more:
a Covered Cause of Loss;
a) If the property is repaired or
ii. Regulates the construction
replaced on the same prem-
or repair of buildings, or
ises, than the amount you
establishes zoning or land
actually spend to:
use requirements at the
premises described in the
i. Demolish and clear the
Declarations; and
site; and
iii. Is in force at the time of
iii. Repair, rebuild or con -
loss.
struct the property but
not for more than prop-
b) For the increased cost to re-
erty of the same height,
pair, rebuild or construct the
floor area and style on
property caused by enforce-
the same premises.
menu of building, zoning or
land use law. If the property is
b) If the property is not repaired
repaired or rebuilt, it must be
or replaced on the same
intended for similar occur
premises, than:
pancy as the current property,
unless otherwise required by
i. The amount you actually
zoning or land use law.
spend to demolish and
clear the site of described
c) For the cost to demolish and
premises, and
clear the site of undamaged
parts of the property caused
ii. The cost to replace, on
by enforcement of the build'-
the same premises, the
ing, zoning or land use law.
damaged or destroyed
property with other prop-
2) We will not pay under this Cover-
erty:
age Extension for the costs associ-
ated with the enforcement of any
i) Of comparable ma -
ordinance or law which requires
terial and quality;
any insured or others to test for,
monitor, clean up, remove, con-
ii) Of the same height,
tain, treat, detoxify or neutralize,
floor area and style;
or in any way respond to, or as-
sess the effects of "pollutants."
iii) Used for the same
purpose.
BP 71 04 (Ed. 04 96) Page 13 of 30
Printed in U.S.A.
5) Under this Coverage Extension,
a. Earth Movement _
we will not pay for loss due to any
ordinance or law that:
1) Any earth movement (other than
sinkhole collapse), such as an
a) You were required to comply
earthquake, landslide, mine subsi-
with before the loss, even if
dence or earth sinking, rising or
the building was undamaged;
shifting. But if earth movement re -
and
sults in fire or explosion, we will
pay for the loss or damage caused
b) You failed to comply with.
by that fire or explosion.
The most we will pay under this Cov-
2) Volcanic eruption, explosion or
erage Extension is $100,000 unless
otherwise indicated in the Declara-
effusion. But if volcanic eruption,
tions.
explosion or effusion results in fire,
building glass breakage or volcanic
The, Limit for this Coverage Extension
action, we will pay for the loss or
is the most we will pay regardless of
damage caused by that fire,
the number of buildings damaged or
building glass breakage or volcanic
destroyed in any one occurrence.
action.
q. Fire Extinguisher Recharge
Volcanic action means direct loss
or damage resulting from the
You may extend the insurance pro-
eruption of a volcano when the
vided by this policy to apply to ex-
loss or damage is caused by:
penses incurred in recharging any fire
extinguisher used to combat a fire on
a) Airborne volcanic blast or air -
your premises or on adjoining prem-
borne shock waves;
ises.
r.
The most we will pay under this Ex-
tension is $2,500 in any one occur-
rence.
Inventory and Appraisal
You may extend the insurance pro-
vided by this policy to apply to the
expense you incur in preparing claim
data when we require it. This includes
the cost of taking inventories, making
appraisals and preparing other docu-
mentation to show the extent of loss.
The most we will pay for preparation
of claim data under this Coverage Ex-
tension is $1,000. We will not pay for
any expenses billed by and payable to
insurance adjusters or expenses from
public adjusters and loss consultants.
B. EXCLUSIONS
1. We will not pay for loss or damage caused
directly or indirectly by any of the follow-
ing. Such loss or damage is excluded re-
gardless of any other cause or event that
contributes concurrently or in any se-
quence to the loss.
b) Ash, dust or particulate mat-
ter; or
c) Lava flow.
All volcanic eruptions that occur
within any 168-hour period will
constitute a single occurrence.
Volcanic action does not include
the cost to remove ash, dust or
particulate matter that does not
cause direct physical loss of or
damage to the Covered Property.
b. Governmental Action
Seizure or destruction of property by
order of governmental authority.
But we will pay for loss or damage
caused by or resulting from acts of
destruction ordered by governmental
authority and taken at the time of a
fire to prevent its spread, if the fire
would be covered under this policy.
BP 71 04 (Ed. 04 96) Page 14 of 30 Printed in U.S.A.
c. Nuclear Hazard
Nuclear reaction or radiation, or ra-
dioactive contamination, however
caused.
But if nuclear reaction or radiation, of -
radioactive contamination results in
fire, we will pay for the loss or damage
caused by that fire.
d. Power Failure
The failure of power or other utility
service supplied to the premises de-
scribed in the Declarations, however
caused, if the failure occurs away from
the premises described in the Decla-
rations.
But if failure of power or other utility
service results in : a Covered Cause of
Loss, we will pay for the loss or dam-
age caused by that Covered Cause of
Loss
e. War and Military Action
1) War, including undeclared or civil
war
2) Warlike action by a military force,
including action in hindering or
defending against an actual or ex-
pected attack, by any govern-
ment, sovereign or other authority
using military personnel or other
agents; or
3) insurrection, rebellion, revolution,
usurped power or action taken by
governmental authority in hinder-
ing or defending against any of
these.
r. Water
1) 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 frorn a
sewer, drain or sump; 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 of -
not; of-
c) Doors, windows or other
openings.
But if Water, as described in B.11 1)
through 4), results in fire, explosion or
sprinkler leakage, we will pay for the
loss or damage caused by that fire,
explosion or sprinkler leakage.
2. We will not pay for loss or damage caused
by or resulting from any of the following:
a. Electrical Apparatus: Artificially gen-
erated electric current, including elec-
tric arcing, that disturbs electrical de-
vices, appliances or wires, except as
provided in the Coverage Extension for
Boiler and Machinery.
But if artificially generated electrical
current results in fire, we will pay for
the loss or damage caused by fire.
b. Consequential Losses: Delay, loss of
use or loss of market.
c. Smoke, Vapor, Gas: Smoke, vapor or
gas from agricultural smudging or in-
dustrial operations.
d. Steam Apparatus: Explosion of steam
boilers, steam pipes, steam engines of -
steam turbines owned or leased by
you, of- operated under your control,
except as provided in the Coverage
Extension for Boiler and Machinery.
But if explosion of steam boilers, steam
pipes, steam engines or steam turbines
results in fire or cornbustion explosion,
we will pay for the loss or damage
caused by that fire or combustion ex-
plosion. We will also pay for loss or
damage caused by or resulting from
the explosion of gases or fuel within
the furnace' of any fired vessel or
within the flues or passages through
which the gases of combustion pass.
BP 71 04 (Ed. 04 96) Page 15 of 30 Printed in U.S.A.
e.
Frozen Plumbing: Water, other liq-
tion, release or escape of "pollutants"
uids, powder or molten material that
results in a "specified cause of loss," we
leaks or flows from plumbing, heating,
will pay for the loss or damage caused
air conditioning or other equipment
by that "specified cause of loss."
(except fire protective systems) caused
by or resulting from freezing, unless:
k. Maintenance Types of Loss:
1) You do your best to maintain heat
1) Wear and tear;
in the building or structure; or
-
2) Rust, corrosion, fungus, decay,
2) You drain the equipment and shut
deterioration, hidden or latent
off the supply if the heat is not
defect or any quality in property
maintained.
that causes it to damage or de-
stroy itself;
f.
Dishonesty: Dishonest or criminal
acts by you, any of your partners,
3) Smog;
employees, directors, trustees, author-
ized representatives or anyone to
4) Settling, cracking, shrinking or ex -
whom you entrust the property for any
pansion;
purpose:
5) Nesting or infestation, or discharge
1) Acting alone or in collusion with
or release of waste products or
others; or
secretions, by insects, birds, ro-
dents or other animals;
2) Whether or not occurring during
the hours of employment.
6) Mechanical breakdown, including
rupture or bursting caused by
This exclusion does not apply to acts
centrifugal force, except as pro-
of destruction by your employees; but
vided in the Coverage Extension
theft by employees is not covered.
for Boiler and Machinery; or
g.
False Pretense: Voluntary parting
7) The following causes of loss to
with any property by you or anyone
personal property:
else to whom you have entrusted the
property if induced to do so by any
a) Dampness or dryness of at -
fraudulent scheme, trick; device or
_ mosphere;
false pretense.
b) Changes in or extremes of
h.
Exposed Property: Rain, snow, ice or
temperature; or
sleet to personal property in the open.
c) Marring or scratching.
i.
Collapse: Collapse, except as pro-
vided in the Additional Coverage for
But if an excluded cause of loss that is
Collapse. But if collapse results in a
listed in B.21. 1) through 7) results in
Covered Cause of Loss, we will pay for
a "specified cause of loss" or building
the loss or damage caused by that
glass breakage, we will pay for the loss
Covered Cause of Loss.
or damage caused by that "specified
cause of loss" or building glass break-
j.
Pollution: We will not pay for loss or
age.
damage caused by or resulting from
the discharge, dispersal, seepage, mi- 3.
We will not pay for loss or damage caused
gration, release or escape of
by or resulting from any of the following
"pollutants" unless the .discharge, dis-
B.3.a. through c. But if an excluded cause
persal, seepage, migration, release or
of loss that is listed in B.3.a. through c. re -
escape is itself caused by any of the
sults in a Covered Cause of Loss, we will
"specified causes of 'loss." But if the
pay for the loss or damage caused by that
discharge, dispersal, seepage, migra-
Covered Cause of Loss.
BP 11 04 (Ed. 04 96) Page 16 of 30
Printed in U.S.A.
l
a. Weather Conditions: Weather con-
ditions. But this exclusion only applies
if weather conditions contribute in any
way with a cause or event excluded in
paragraph 1. above to produce the
loss or damage.
b. Acts or Decisions: Actsor decisions,
including the failure to act or decide,
of any person, group, organization or
governmental body.
c. Negligent Work: Faulty, inadequate
or defective:
1) Planning, zoning, development,
surveying, siting
2) Design, specifications, workman-
ship, repair, construction, renova-
tion, remodeling, grading, com-
paction;
3) Materials used in repair, construc-
tion, renovation or remodeling; or
4) Maintenance
of part' or all of any property on or off
the premises described in the Decla-
rations.
4. Business Income and Extra Expense Ex-
clusions. We will not pay for:
a. Any Extra Expense, or increase of
Business Income loss, caused by or re-
sulting from:
1) Delay in rebuilding, repairing or
replacing the property or resuming
"operations," due to interference at
the location of the rebuilding, re-
pair 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 INSURANCE
1. The most we will pay for loss or damage in
any one occurrence is the applicable Limit
of Insurance shown in the Declarations.
2. The limits applicable to the Coverage Ex-
tensions other than Signs and Class and
the Fire Department Service Charge, Pol-
lutant Clean Up and Removal, and Arson
Reward Additional Coverages are in addi-
tion to the Limits of Insurance.
3. Building Limit - Automatic Increase
a. The Limit of Insurance for Buildings
will automatically increase by the an-
nual percentage shown in the Decla-
rations.
b. The amount of increase will be:
1) The Building limit that applied on
the most recent of the policy in-
ception date, the policy anniver-
sary date, or any other policy
change amending the ` Building
limit, times
2) The percentage of annual increase
shown in the Declarations, ex-
pressed as a decimal (example:
5% is .05), times
3) The number of days since the
beginning of the current policy
year or the effective "date of the
most recent policy change
amending the Building limit, di-
vided by 365.
Example:
If: The applicable Building
lirnit is $100,000
The annual percentage
increase is 5%
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 .05 X 146 $2,000
365
BP 71 04 (Ed. 04 96) Page 17 of 30 Printed in U.S.A.
4. Business Personal Property Limit - Sea-
sonal Increase
a. The Limit of Insurance for Business
Personal Property will automatically in-
crease by 25% to provide for seasonal
variations.
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 pre-
ceding the date the loss or dam-
age occurs; or
2) The period of time you have been
in business as of the date the loss
or damage occurs.
D. DEDUCTIBLES
1. We will not pay for loss or damage in any
one occurrence until the amount of loss or
damage exceeds the Deductible shown in
the Declarations. We will then pay the
amount of loss or damage in excess of the
Deductible up to the applicable Limit of
Insurance.
2. Regardless of the amount of the Deducti-
ble, the most we will deduct from any loss
or damage under all of the following Cov-
erage Extensions and Optional Coverages
in any one occurrence is $250:
a. "Money" and "Securities;
b. Employee Dishonesty;
c. Glass;
d. Signs
e. Money Orders and Counterfeit Paper;
f. Forgery and Alteration;
g. Accounts Receivable; and
h. Valuable Papers.
Except as provided by paragraphs D.3.
and D.4. for those Coverages, Coverage
Extensions, Endorsements, and Optional
Coverages not listed in a. through •h.
above, the deductible included as part of
the Coverages, Optional Coverages or En-
dorsement applies.
These deductibles will not increase the
deductible shown in the Declarations.
These deductibles will be applied toward
the requirements of the deductible in the
Declarations.
3. No deductible applies to the following:
a. Fire Department Service Charge;
b. Business Income;
c. Extra Expense;
d. Arson Reward;
e. Inventory and Appraisal;
f. Personal Effects; and
g. Civil Authority.
4. A deductible of $1,000 applies to loss or
damage to business electronic equipment
caused by the following Causes of Loss:
a. _ Short circuit, or other electrical distur-
bances other than lightning;
b. Damage caused by actual work upon
the property; or
c. Electrical or magnetic injury, distur-
bance or erasure of electronic record-
ing tapes or disks.
E. PROPERTY LOSS CONDITIONS
1. Abandonment
There can be no abandonment of any
property to us.
2. 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
BP 71 04 (Ed. 04 96) Page 18 of 30 Printed in U.S.A.
of a court having jurisdiction. The apprais-
ers 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 ap-
praisal and umpire equally.
If there is an appraisal, we will still retain
our right to deny the claim.
3. Duties In The Event Of Loss Or Damage
You must see that the following are done
in the event of doss 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 descrip-
tion -of how, when and where the loss
or damage occurred.
d. Take all reasonable steps to protect
the Covered Property from further
damage, and keep a record of your
expenses necessary to protect the
Covered Property, for consideration in
the settlement of the claim. This will
not increase the Limit of Insurance.
However, we will not pay for any Sub-
sequent loss or damage resulting from
a cause of loss that is not a Covered
Cause of Loss. Also, if feasible, set the
damaged property aside and in the
best possible order for examination.
e. At our request, give us complete in-
ventories of the damaged and undam-
aged property. Include quantities,
costs, values and amount of loss
claimed.
f. As often as may be reasonably re-
quired, permit us to inspect the prop-
erty proving the loss or damage and
examine your books and records.
Also permit us to take samples of
damaged and undamaged property for
inspection, testing and analysis, and
permit us to make copies from your
books and records.
g. Send us a signed, sworn statement of
loss containing the information we re-
quest to investigate the claim. You
must do this within 60 days after our
request. We will supply you with the
necessary forms.
h. For loss or damage resulting from the
Optional Coverage, Employee Dishon-
esty give us a detailed, sworn proof of
loss within 120 days of the date of dis-
covery.
i. Cooperate with us in the investigation
or settlement of the claim.
j. Resume all or part of your 'operations"
as quickly as possible.
k. We may examine any insured under
oath, while not in the presence of any
other insured and at such times as
may be reasonably required, about
any matter relating to this insurance or
your claim, including an insured's
books and records. In such event,
your answers must be signed.
4. Legal Action Against Us
5
No one may bring a legal action against us
under this insurance unless:
a. There has been full compliance with
all of the terms of this insurance; and
b. The action is brought within 2 years
after the date on which the direct
physical loss or damage occurred.
Limitation -- Electronic Media and Rec-
ords
We will not pay for any loss of Business in-
come 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
BP 71 04 (Ed. 04 96) Page 19 of 30 Printed in U.S.A.
b. The period, beginning with the date of
direct physical loss or damage, neces-
sary to repair, rebuild or replace with
reasonable speed and similar quality,
other property at the premises de-
scribed in the Declarations due to loss
or damage caused by the same occur-
rence.
Electronic Media and Records are:
a. Electronic data processing, recording
or storage media such as films, tapes,
discs, drums or cells;
b. Data stored on such media; or
c. Programming records used for elec-
tronic data processing or electronically
controlled equipment.
Example No. 1:
A Covered Cause of Loss damages a com-
puter on June 1. It takes until September 1
to replace the computer, and until Octo-
ber 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 Busi-
ness Income loss sustained during the pe-
riod August 1 -- September 29 (60 con-
secutive days). Loss during the period
September 30 -- October 15 is not cov-
ered.
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 replac-
ing the lost or damaged property;
BP 11 04 (Ed. 04 96) Page 20 of 30
3) Take all or any part of the prop-
erty at an agreed or appraised
value; or
4) Repair, rebuild or replace the
property with other property of
like kind and quality.
b. We will give notice of our intentions
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 Prop-
erty.
d. Except as provided in 2) through 7)
below, we will determine the value of
Covered Property as follows:
1) At replacement cost without de-
duction for depreciation, subject
to the following:
a) If, at the time of loss, the Limit
of Insurance on the lost or
damaged property is 80/0 or
more of the full replacement
cost of the property immedi-
ately before the loss, we will "
pay, the cost to repair or re-
place, after application of the
deductible and without de-
duction for depreciation, but
not more than the least of the
following amounts:
i. The Limit of Insurance
under this policy that
applies to the lost or
damaged property
ii. The cost to replace, on
the same premises, the
lost or damaged property
with other property:
i) Of comparable ma-
terial and quality; and
ii) Used for the same
purpose; or
iii. The amount that you ac-
tually spend that is neces-
sary to repair or replace
the lost or damaged
property.
Printed in U.S.A.
b)
If, at the time of loss, the Limit
ii. Unless the repairs or re -
of Insurance applicable to the
placement are made as
lost or damaged property is
soon as reasonably pos-
less than 80% of the full re-
sible after the loss or
placement cost of the prop-
damage.
erty immediately before the
loss, we will pay the greater of
2) ' If the Actual Cash Value -- Build -
the following amounts, but
ings option applies, as shown in
not more than the Limit of In-
the Declarations, paragraph 1)
surance that applies to the
above does not apply to Buildings.
property:
Instead, we will determine the
value of Buildings at actual cash
i. The actual cash value of
value.
the lost or damaged
property;
3) The following property at actual
ii. A proportion of the cost
cash value:
to repair or replace the
lost or damaged property,
a) Used or second-hand mer-
after application of the
chandise held in storage or
deductible and without
for sale;
deduction for deprecia-
tion. This proportion will
b) Household contents, except
equal the ratio of the
personal property in apart -
applicable Limit of Insur-
rnents or rooms furnished by
ance to 80% of the cost
you as landlord;
of repair or replacement;
c) Manuscripts;
or
iii. The amount that you ac-
d) Works of art, antiques or rare
tually spend to repair or
articles, including etchings,
replace the lost or dam-
pictures, statuary, marbles,
aged property.
bronzes, porcelains and bric-
a-brac.
c)
You may make a claim for
loss or .damage covered by
4) Glass at the cost of replacement
this insurance on an actual
with safety glazing material
cash value basis instead of on
a replacement cost basis. In
5) Tenants' Improvements and Bet-
the event you elect to have
terments at:
loss or damage settled on an
actual cash value basis,
a) Replacement cost if you make
you
may still make a claim on a
repairs promptly.
replacerent_cost basis if you
notify us of your intent to do
b) A proportion of your original
so within 180 .days after the
cost if you do not make re -
loss or damage.
pairs promptly. We will de -
termine the proportionate
d)
We will not pay on a re-
value as follows:
placement cost basis for any
loss or damage:
i. Multiply the original cost
by the number of days
i. Until the lost or darnaged
from the loss or damage
property is actually re-
to the expiration of the
lease; and
paired or replaced; and
BP 71 04 (Ed. 04.96)
Page 21 of 30
Printed in U.S.A.
ii. Divide the amount de-
termined in i) above by
the number of days from
the installation of im-
provements to the expi-
ration of the lease.
If your lease contains a re-
newal option, the expiration
of the renewal option period
will replace the expiration of
the lease in this procedure.
c) Nothing if others pay for re-
pairs or replacement.
6) Valuable Papers and Records, in-
cluding those which exist on elec-
tronic or magnetic media (other
than prepackaged software pro-
grams), at the cost of:
a) Blank materials for reproduc-
ing the records; and
b) Labor to transcribe or copy
the records.
7) Applicable only to "Money" and
"Securities":
a) "Money' at its face value; and
b) "Securities" at the value at the
close of business on the day
the loss is discovered.
The value of United States Govern-
ment Internal Revenue taxes and cus-
tom duties and refundable state and
local taxes paid or fully determined on
the following property held for sale
will not be considered in determining
the value of Covered Property:
a) Distilled spirits
b) Wines;
c) Rectified products; or
d) Beer.
e. Our payment for loss of or damage to
personal property of others will only
be to the owners of the property. We
may adjust losses with the owners of
lost or damaged property if other than
you. If we pay the owners, such pay-
ments will satisfy your claims against us
for the owners' property. We will not
pay the owners more than their finan-
cial interest in the Covered Property.
f. We may elect to defend you against
suits arising from claims of owners of
property. We will do this at our ex-
pense.
g. We will pay for covered loss or dam-
age 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.
h. For Covered Property in which both
you and a Loss Payee shown in the
Declarations have an insurable inter-
est, we will:
1) Adjust losses with you; and
2) Pay any claim for loss or damage
jointly to you and the Loss Payee,
as interests may appear.
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 premises described in the
Declarations or elsewhere.
BP 71 04 (Ed. 04 96) Page 22 of 30 Printed in U.S.A.
b. Extra Expense loss to the extent you
can return "operations" to normal and
discontinue such Extra Expense.
9. Vacancy
a. Description of Terms
1) As used in the Vacancy Condition,
.the tern building and the term
vacant have the meanings set
forth in 1) a) and 1) b) below:
a) When this policy is issued to a
tenant, and with respect to
that tenant's interest in Cov-
ered Property, building means
the unit or suite rented or
leased to the tenant. Such
building is vacant when it
does not contain enough
business personal property to
conduct customary opera-
tions.
b) When this policy is issued to
the owner of a building,
building means the entire
building. Such building is va-
cant when 70% or more of its
total square footage:
i. Is not rented; or
ii. Is not used to conduct
customary operations.
2) Buildings under construction or
renovation are not considered _va-
cant.
b. Vacancy Provisions
If the building where loss or damage
occurs has been vacant for more than
60 consecutive days before that loss or
damage occurs:
1) We will not pay for any loss or
damage caused by any of the fol-
lowing even if they are Covered
Causes of Loss:
a) Vandalism;
b) Sprinkler leakage, unless you
have protected the system
against freezing;
2) With respect to Covered Causes
of Loss other than those listed in
b. 1) a) and b. 1) b) above, we
will reduce the amount we would
otherwise pay for the loss or dam-
age by 15
F. PROPERTY GENERAL CONDITIONS
1. Control of Property
Any act or neglect of any person other
than you beyond your direction or control
will not affect this insurance.
The breach of any condition of this Cover-
age 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 prece-
dence, as interests may appear.
c. The mortgage holder has the right to
receive loss payment even if the mort-
gage holder has started foreclosure or
similar action on the building or
structure.
d. If we deny your claim because of your
acts or because you have failed to
comply with the terns of this policy,
the mortgage holder will still have the
right to receive loss payment if the
mortgage holder:
1) Pays any premium due under this
policy at our request if you have
failed to do so;
2) Submits a signed, sworn statement
of loss within 60 days after receiv-
ing notice from us of your failure
to do so; and
BP 71 04 (Ed. 04 96) Page 23.of 30 Printed in U.S.A.
3) Has notified us of any change in
4. Policy Period, Coverage Territory
ownership, occupancy or substan-
tial change in risk known to the
Under this form:
mortgage holder.
a. We cover loss or damage commenc-
All of the terms of this policy will then
ing:
apply directly to the mortgage holder.
1) During the policy period shown in
e. if we pay the mortgage holder for any
the Declarations; and
loss or damage and deny payment to
you because of your acts or because
2) Within the coverage territory or,
you have failed to comply with the
with respect to property in transit,
terms of this policy:
while it is between points in the
coverage territory.
1) The mortgage holder's rights un-
der the mortgage will be trans-
b. The coverage territory is:
ferred to us to the extent of the
amount we pay; and
1) The United States of America
(including its territories and pos-
2) The mortgage holder's right to re-
sessions);
cover the full amount of the mort-
gage holder's claim will not be
2) Puerto Rico; and
impaired.
3) Canada.
At our option, we may pay to the
mortgage holder the whole principal
G. OPTIONAL COVERAGES
on the mortgage plus any accrued in-
terest. - In this event, your mortgage
If shown as applicable in the Declarations, the
and note will be transferred to us and
following Optional Coverages also apply. These
you will pay your remaining mortgage
coverages are subject to the terms and condi-
debt to us.
tions applicable to property coverage in this
policy, except as provided below.
f. If we cancel this policy, we will give
written notice to the mortgage holder
1. Employee Dishonesty
at least:
a. We will pay for direct loss of or dam-
1) 10 days before the effective date
age to Business Personal Property, in -
of cancellation if we cancel for
cluding "money" and "securities," result -
your nonpayment of premium; or
ing directly from dishonest acts com-
mitted by any of your employees act-
2) 30 days before the effective date
ing alone or in collusion with other
of cancellation if we cancel for
persons (except you or your partner)
any other reason.
with the manifest intent to:
g. If we elect not to renew this policy,
1) Cause you to sustain loss or dam -
we will give written notice to the
age; and also
mortgage holder at least 10 days be-
fore the expiration date of this policy.
2) Obtain financial benefit (other
than salaries, commissions, fees,
3. No Benefit to Bailee
bonuses, promotions, awards,
profit sharing; pensions or other
No person or organization, other than you,
employee benefits earned in the
having custody of Covered Property will
normal course of employment)
benefit from this insurance.
for:
a) Any employee; or
BP 71 04 (Ed. 04 96) Page 24 of 30 Printed in U.S.A.
b) Any other person or organk
zation.
b. We will not pay for loss or damage:
1) Resulting frorn 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 dam-
age 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.
e. We will pay only for loss or damage
you sustain through acts committed or
events occurring during the Policy Pe-
riod. 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 ap-
ply 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
employeebefore or after being hired
by you.
g. We will pay only for covered loss or
damage discovered no later than one
year from the end of the Policy Pe-
riod.
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 in-
surance except that the time within
which to discover loss or damage had
'expired, we will pay for it under this
Optional Coverage, provided:
1) This Optional Coverage became
effective at the time of cancella-
tion or termination of the prior in-
surance; and
2) The loss or damage would have
been covered by this Optional
Coverage had it been in effect
when the acts or events causing
the loss or damage were commit-
ted or occurred.
i. The insurance under paragraph h.
above is part of, not in addition to, the
Limit of Insurance applying to this Op-
tional Coverage and ,is limited to the
lesser of the amount recoverable un-
der:
1) This Optional Coverage as of its
effective date; or
2) The prior insurance had it re-
mained in effect.
2. Spoilage
a. We will pay for direct physical loss of
or damage to "perishable stock" at the
premises described in the Declarations
caused by or resulting from:
1) Contamination by refrigerant; or
2) Temperature or humidity change
due to:
a) On premises:
i. Mechanical breakdown
or failure of refrigerating
systems;
BP 71 04 (Ed. 04 96) Page 25 of 30 Printed in U.S.A..
ii. Burning out of electrical
motors;
iii. Blowing of fuses or circuit
breakers; or
iv. Breakdown or malfunc-
tion of the equipment or
apparatus connecting or
controlling refrigerating
systems, electric motors
or electrical power; or
b) Power outage, meaning
change in temperature or
humidity resulting from com-
plete or partial interruption of
electrical power, off premises,
due to conditions beyond
your control.
b. Paragraph A.4., Covered Causes of
Loss, and Section B., EXCLUSIONS, do
not apply to this Optional Coverage,
except for:
1) Paragraph B.1.a, Earth Movement;
2) Paragraph B.1.b., Governmental
Action;
3)
Paragraph B.1.c., Nuclear Hazard;
4)
Paragraph B.1.e., War and Military
Action; and
5)
Paragraph 13.11., Water.
c. We will not pay for spoilage caused by
or resulting from:
1)
The disconnection of any refrig-
erating, cooling or humidity con-
trol system from the source of
power.
2)
The deactivation of electrical
power caused by the manipula-
tion of any switch or other device
used to control the flow of electri-
cal power or current.
3)
The inability of an electrical utility
company or other power source
to provide sufficient power due to:
i. Lack of fuel; or
ii. Governmental order.
4) The inability of a power source at
the premises described in the
Declarations to provide sufficient
power due to lack of generating
capacity to meet demand.
5) Breaking of any glass that is a
permanent part of any refrigerat
ing, cooling or humidity control
unit.
d. Conditions
1., Under Section E., Property Loss
Conditions, item d. of Condition
6., Loss Payment, is replaced by
the following:
d. We will determine the value
of Covered Property as fol-
lows:
i. For "perishable stock" you
have sold but not deliv-
ered, at the selling price
less discounts and ex-
penses you otherwise
would have had;
ii. For other "perishable
stock, at actual cash
value.
2. ADDITIONAL CONDITION --
REFRIGERATION MAINTENANCE
AGREEMENTS
If a refrigeration maintenance
agreement is shown as applicable
in the Declarations, the following
additional condition applies:
You must maintain a refrigeration
maintenance or service agreement
as described below. If you volun-
tarily terminate this agreement and
do not notify us within 10 days,`
the insurance provided by this
optional coverage will automati-
cally be suspended at the location
involved.
BP 71 04 (Ed. 04 96) Page 26 of 30 Printed in U.S.A.
A refrigeration maintenance agree-
expiration of this policy will not reduce
ment means a written service
the 168-hour period.
contract, between you and the
refrigeration service organization,
c. This Optional Coverage does not ap-
which provides for regular peri-
ply to loss or damage caused by or re -
odic inspection of the refrigeration
suiting from:
equipment at the insured location,
and .the servicing and repair of the
1) ..Fire,. explosion (other than vol-
equipment, including` emergency
canic ..explosion), landslide, mine
subsidence tidal wave flood
response at the insured location.
.mudslide or mudflow, even if at-
e. Deductible
tributable to an Earthquake or
Volcanic Eruption; or
We will not pay for loss or damage in
2) Any Earthquake or Volcanic Erup-
any one occurrence until the amount
tion that begins before the incep-
of loss or damage exceeds $250. We
tion of this insurance.
will then pay the amount of loss or
damage in excess of $250 up to the
applicable Limit of Insurance.
But, if this policy replaces earthquake
insurance that excludes loss or dam-
f. Limit of Insurance
age that occurs after the expiration of
the policy, we will pay for loss or
The most we will pay for loss or dam-
damage by Earthquake or Volcanic
age in any one occurrence is the Limit
Eruption that occurs on or after the in-
of .Insurance for Spoilage shown in the
ception of this insurance, if the series
Declarations.
of -Earthquake shocks or Volcanic
Eruptions began within 168 hours prior
g. Coverage Extensions
to the inception of this insurance.
1) We will pay, in addition to the
d. Paragraph B.1.a., Exclusions, Earth
loss, but not to exceed the Limit
Movement, does not apply.
of insurance, for reasonable ex-
pense incurred to reduce the loss
e. Section D., DEDUCTIBLES, is replaced
but only to the extent the loss is
by the following for Earthquake and
reduced.
Volcanic Eruption:
2) We will pay, in addition to the
1) We will subtract a surd from the
loss, for reasonable additional ex-
amount of loss or damage in any
penses to dispose of "perishable
one occurrence.
stock" spoiled by a Covered Cause
of Loss.
a) The sum we subtract from
each separate item will be a
3. Earthquake
percentage of its value. The
applicable percentage is
a. The following are added to Paragraph
shown in the Declarations.
A.S:, Covered Causes of Loss:.
b) This Deductible applies sepa-
l) Earthquake; and
rately to the following:
2) Volcanic Eruption, meaning the
i. Each building or structure;
eruption, explosion or effusion of
a volcano.
ii. The contents of each
b. All Earthquake shocks or Volcanic
building or structure; and
Eruptions that occur within any 168-
iii. Personal property in the
hour period will constitute a single
Earthquake or Volcanic Eruption. The
open.
BP 71 04 (Ed. 04 96) Page 27 of 30 Printed in U.S.A.,
Example:
When: The value of the
Building is $200,000
The value of the
Business Personal
Property is $80,000
The Earthquake
Deductible is 10%
The amount of loss
for Building is $50,000
The amount of loss
for Business Personal
Property is $40,000
Step (a): $ 200,000 x 10% = $20,000
(Deductible) $ 80,000 x 10% = $ 8,000
Step (b): $50,000 - $20,000 = $30,000
(Payment) $40,000 — $8,000 = $32,000
$62,000
The most we will pay is $62,000.
2) No deductible applies to the fol-
lowing:
a) Business Income;
b) Extra Expense; and
c) Civil Authority.
f. Limit of Insurance
The most we will pay for loss or dam-
age under this Optional Coverage, in-
cluding Business Income and Extra Ex-
pense, is:
1) The Premises limit shown in the
Declarations for any single earth-
quake or volcanic eruption at any
one premises;
2) The Aggregate limit shown in the
Declarations for any one policy
year regardless of the number of
earthquakes or volcanic eruptions
or premises.
These limits are not in addition to, but
are included in any other applicable
policy limits.
4. Sprinkler Leakage -- Earthquake
a. The following is added to Paragraph
AA., Covered Causes of Loss:
Sprinkler Leakage -- Earthquake,
meaning Sprinkler Leakage loss or
damage caused by:
1) Earthquake; or
2) Volcanic eruption, explosion or
effusion.
b. Limit of Insurance
The most we will pay for loss or dam-
age under this Optional Coverage, in-
cluding Business Income or Extra Ex-
pense, is the applicable Limit of Insur-
ance shown in the Declarations.
c. Deductible
This Optional Coverage is subject to
the Property Coverages deductible
shown in the Declarations.
5. Water Damage (Sewers and Drains)
a. We will pay for loss or damage caused
by water which backs up through
sewers or drains. Exclusion B.1.f. 3)
does not apply.
b. Limit of Insurance
The most we will pay for loss or dam-
age under this Optional Coverage is
the applicable Limit of Insurance
shown in the Declarations.
c. Deductible
We will subtract _$1,000 from the
amount of loss or damage in any one
occurrence. However, this does not
apply to Business Income or Extra Ex-
pense.
BP 71 04 (Ed. 04 96) Page 28 of 30 Printed in U.S.A.
H. PROPERTY DEFINITIONS 7.
"Period of Restoration" means the period
of time that:
1. "Computer virus" means intrusive codes
or programming that are entered into your
a. Begins immediately after the time of
computer system and interrupt your data
direct physical loss or damage for Extra
processing operation or cause loss to Cov-
Expense Coverage caused by or result-
ered Property.
ing from any Covered Cause of Loss at
the premises described in the Decla-
2. "Electrical disturbance" means electrical
rations; and
injury, magnetic injury, disturbance of
electronic recordings or erasure of elec-
b. Ends on the earlier of:
tronic recordings.
1) The date when the property at
3. "Electronic data processing equipment"
the premises described in the
(hardware) means:
Declarations should be repaired,
rebuilt or replaced with reason -
a. Programmable electronic equipment
able speed and similar quality; or
that is used to store, retrieve and
process data; and `
2) The date when business is re-
surned at a new permanent loca-
b. Associated peripheral equipment that
tion.
provides commr_mication including in-
put and output functions such as
"Period of Restoration" does not include
printing, or auxiliary functions such as
any increased period required due to the
data transmission.
enforcement of any ordinance or law that:
4. "Electronic media and records" (software)
1) Regulates the construction, use or re -
means:
pair, or requires the tearing down of
any property; or
a. Electronic data processing, recording
or storage media such as films, tapes,
2) Requires any insured or others to test
discs, drums or cells;
for, monitor, clean up, remove, con-
tain, treat, detoxify or neutralize, or in
b. Data stored on such media; and
any way respond to or assess the ef-
fects of "pollutants."
c. Programming records used for elec-
tronic data processing or electronically
The expiration date of this policy will not
controlled equipment.
cut short the "Period of Restoration."
5. "Money" means: 8.
"Perishable stock" means Business Per-
sonal Property:
a. Currency, coins and bank notes in
current use and having a face value;
a. Maintained under controlled condi-
_and
tions for its preservation; and
b. Travelers checks, registered checks
b. Susceptible to loss or damage if the
and money orders held for sale to the
controlled conditions change.
public.
9.
"Pollutants" means any solid, liquid, gase-
6. "Operations" means your business activi-
ous or thermal irritant or contaminant, in -
ties occurring at the premises described in
cluding asbestos, smoke, vapor, soot,
the Declarations.
fumes, acids, alkalis, chemicals and waste.
Waste includes materials to be recycled,
reconditioned or reclaimed.
BP 71 04 (Ed. 04 96) Page 29 of 30
Printed in U.S.A.
10. "Power supply disturbance" means inter-
ruption of electrical power supply, power
surge, blackout or brownout.
11. "Securities" means negotiable and non-
negotiable instruments or contracts repre-
senting either "money" or other property
and includes:
a. Tokens, tickets, revenue and other
stamps (whether represented by actual
stamps or unused value in a meter) in
current use; and
b. Evidences of debt issued in connection
with credit or charge cards, which are
not issued by you
but does not include "money."
12. "Specified Causes of Loss means the
following:
Fire; lightning; explosion; windstorm or hail;
smoke; aircraft or vehicles; riot or civil
commotion; vandalism; leakage from fire
extinguishing equipment; sinkhole collapse;
volcanic action; falling objects; weight of
snow, ice or sleet; and water damage.
a. Sinkhole collapse means the sudden
sinking or collapse of land into under-
ground empty spaces created by the
action of water on limestone or
dolomite. This cause of loss does not
include:
1) The cost of filling sinkholes; or
2) Sinking or collapse of land into
man-made underground cavities.
b. Falling objects does not include loss or
damage to:
1) Personal property in the open; or
2) The interior of a building or
structure, or property inside a
building or structure, unless the
roof or an outside wall of the
building or structure is first dam-
aged by a falling object.
c. Water damage means accidental dis-
charge or leakage of water or steam as
the direct result of the breaking apart
or cracking of any part of a system or
appliance (other than a sump pump
system, including its related equipment
and parts) containing water or steam.
BP 7-1 04` (Ed. 04 96) Page 30 of 30 Printed in U.S.A.
RUSINESSOWNERS AMENDATORY
ENDORSEMENT
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
This endorsement modifies insurance provided under
the following:
BUSINESSOWNERS POLICY
The following changes apply to the Businessowners
7. Coverage Extensions
Special Property Coverage Form, BP 71 04:
Paragraph m. 1) is deleted and replaced
A. COVERAGE
by the following:
2. Business Income and Extra Expense
m. Business Electronic Equipment
Paragraph 2. b. 2) c) is deleted and re-
1) You may extend the insurance
placed by the following;
provided by A.1.b. Business Per-
sonal Property to apply to direct
c) i. To repair or replace any property;
physical loss of or damage to
or
business electronic equipment
caused by "electrical disturbance"
ii. To research, replace or restore the
and "power supply disturbance" if
lost information on damaged valu-
such disturbance is caused by one
able papers and records to the
of the Covered Causes of Loss.
extent it reduces the amount of
loss that otherwise would have
For the purposes of the Coverage
been payable under this Coverage
Extension, Section B. -- EXCLU-
or Coverage 2.a., Business In-
SIONS, is amended as follows:
come.
a) Paragraph 1.d., Power Failure,
We will only pay for Extra Expense that you
does not apply.
sustain during the "period of restoration" and
that occurs within 12 consecutive months after
b) Paragraphs 2.a., 2.c., 2.d.,
the date of direct physical loss or damage. This
2.e., 2.h., 2.i., 2.j., and 21. 3)
Coverage is not subject to the Limits of Insur-
through 2.k. 7) do not apply.
ance.
THIS ENDORSEMENT MUST BE ATTACHED TO A CHANGE ENDORSEMENT WHEN ISSUED AFTER THE POLICY
IS WRITTEN.
BP 71 68 (Ed. 04 97) Printed in U.S.A.
BUSINESSOWNERS LIABILITY
COVERAGE FORM
MEMPER.
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 -- WHO IS AN
INSURED.
Other words and phrases that appear in quotation
marks have special meaning. Refer to SECTION G --
LIABILITY AND MEDICAL EXPENSES DEFINITIONS.
A. COVERAGES
b. This insurance applies:
1. Business Liability
1) To "bodily injury" and "property
damage" only,if:
a. We will pay those sums that the in-
sured becomes ` legally obligated to
a) The "bodily injury" or
pay as damages because of "bodily
"property damage" is caused
injury," "property damage," "personal
by an "occurrence" that takes
injury" or "advertising injury" to which
place in the "coverage terri-
this insurance applies. We will have
tort'; and
the right and duty to defend any "suit"
seeking those damages. However, we
b) The "bodily injury" or
will have no duty to defend the in-
"property damage" occurs
sured against any "suit" seeking dam-
during the policy period.
ages for , "bodily injury," "property
damage," "personal injury" or
2) ' To:
"advertising injury" to which this insur-
ance does not apply. We may at our
a) "Personal injury" caused by
discretion investigate any "occurrence"
an offense arising out of your
or offense and settle any claim or
business;
"suit" that may result. But:
b) "Advertising injury" caused by
1) The amount we will pay for dam-
an offense committed in the
ages is limited as described in
course of "your advertising
SECTION D -- LIABILITY AND
activities"
MEDICAL EXPENSES LIMITS OF
INSURANCE; and
but only if the offense was
committed in the "coverage terri-
2) Our right and duty to defend end
tory" during the policy period.
when we have used up the ap-
plicable limit of insurance in the
c. Damages because of "bodily injury"
payment of judgments or settle-
include damages claimed by any per -
merits or medical expenses.
son or organization for care, loss of
services or death resulting at any time
No other obligation or liability to pay
from the "bodily injury."
sums or perform acts or services is
covered unless explicitly provided for
d. "Bodily injury," "property damage,"
under COVERAGE EXTENSION --
"personal injury" or "advertising injury"
SUPPLEMENTARY PAYMENTS.
arising out of the rendering or failure
to render professional health care
BP 71 08 (Ed. 04 96) Page 1 of 20 Printed in U.S.A.
services as a pharmacist shall be
deemed to be caused by an
"occurrence."
e. Coverage Extension - Supplemen-
tary Payments
In addition to the Limit of Insurance,
we will pay, with respect to any claim
we investigate or settle or any "suit"
against an insured we defend:
1) All expenses we incur.
2) Up to $2,500 for cost of bail
bonds required because of acci-
dents or traffic law violations
arising out of the use of any ve-
hicle to which Business Liability
Coverage for "bodily injury' ap-
plies. We do not have to furnish
these bonds.
3) The cost of bonds to release at-
tachments, but only for bond
amounts within our Limit of Insur-
ance. We do 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," in-
cluding actual loss of earnings up
to $250 a day because of time off
from work.
5) All costs taxed against the insured
in the "suit."
6) Prejudgment interest awarded
against the insured on that part of
the judgment we pay. If we make
an offer to pay the Limit of Insur-
ance, we will not pay any pre-
judgment interest based on that
period of time after the offer.
7) All interest on the full amount of
any judgment that accrues after
entry of the judgment and before
we have paid, offered to pay, or
deposited in court the part of the
judgment that is within our Limit
of Insurance.
2. Medical Expenses
a. We will pay medical expenses as de-
scribed below for "bodily injury"
caused by an accident:
1) On premises you own or rent;
2) On waysnext 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 ex-
amination, at our expense, by
physicians of our choice as often
as we reasonably require.
b. We will make these payments regard-
less of fault. These payments will not
exceed the Limit of .Insurance. We
will pay reasonable expenses for:
1) First aid administered at the time
of an accident;
2) Necessary medical, surgical, x-ray
and dental services, including
prosthetic devices; and
3) Necessary ambulance, hospital,
professional >nursing and funeral
services.
B. EXCLUSIONS
1. Applicable to Business Liability Cover-
age
This insurance does not apply to:
a. Expected or Intended Injury
"Bodily injury" or "property damage"
expected or intended from the stand-
point of the insured. This exclusion
does not apply to "bodily injury' or
BP 71 08 (Ed. 04 96) Page 2 of 20 Printed in U.S.A.
"property damage" resulting from the
use of reasonable force to protect
persons or property.
b. Contractual Liability
"Bodily injury" or "property damage"
for which the insured is obligated to
pay damages by reason of the as-
sumption of liability in a contract or
agreement. This exclusion does not
apply to liability for damages:
1) That the insured would have in
the absence of the contract or
agreement; or
2) Assumed in a contract or agree-
ment that is an "insured contract,"
provided the "bodily injury" or
"property damage" occurs subse-
quent to the execution of the
contract or agreement. Solely for
the purposes of liability assumed
in an "insured contract," reason-
able attorney fees and necessary
litigation expenses incurred by or
for a party other than an insured
are deemed to be part of Sup-
plementary Payments because of
"bodily injury" or "property dam-
age," provided:
a) Liability to such party for, or
for the cost of, that party's
defense has also been as-
sumed in the same "insured
contract"; and
b) Such attorney fees and Riga-
tion expenses are for defense
of that party against a civil or
alternative dispute resolution
proceeding in which dam-
ages to which this insurance
applies are alleged.
c. Liquor liability
"Bodily injury" or "property damage"
for which any insured may be held li-
able by reason of:
1) Causing or contributing to the in-
toxication of any person;
2) The furnishing of alcoholic bever-
ages to a `person under the legal
drinking age or under the influ-
ence of alcohol; or
3) Any statute, -ordinance or regula-
tion relating to the sale, gift, dis-
tribution or use of alcoholic, bev-
erages.This exclusion applies only if you are
in the business of manufacturing, dis-
tributing, selling, serving or furnishing
alcoholic beverages.
d. Workers Compensation and Similar
Laws
Any obligation of the insured under a
workers compensation, disability
benefits or unemployment compensa-
tion law oi- any similar law.
e. Employer's 'Liability
"Bodily injury" to:
1) An "employee" of the insured
arising out of and in the course
of:
a) Employment by the insured;
or
b) Performing duties related to
the conduct of the insured's
business; or
2) The spouse, child, parent, brother
or sister of that "employee" as a
consequence of paragraph 1)
above.
This exclusion applies:
1) Whether the insured may be li-
able as an employer or in any
other capacity; and
2) To any obligation to share dam-
ages with or repay someone else
who must pay damages because
of the injury.
This exclusion does not apply to li-
ability assumed by the insured under
an "insured contract."
BP 71 08 (Ed. 04 96) Page 3 of 20
Printed in U.S.A.
f. Pollution
1) "Bodily injury," "property damage,"
"personal injury," or "advertising
injury" arising out of the actual,
alleged or threatened discharge,
dispersal, seepage, migration, re-
lease or escape of pollutants at
any time:
a) At or from any premises, site
or location which is or was at
any time owned or occupied
by, or rented or loaned to,
any insured;
b) At or from any premises, site
or location which is or was at
any time used by or for any
insured or others for the
handling, storage, disposal,
processing or treatment of
waste;
c) Which are or were at any
time transported, handled,
stored, treated, disposed of,
or processed as waste by or
for any insured or any person
or organization for whom you
may be legally responsible; or
d) At or from any premises, site
or location on which any in-
sured or any contractors or
subcontractors working di-
rectly or indirectly on any in-
sured'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 in
sured, contractor or sub-
contractor; or
ii) If the operations are to
test for, monitor, clean
up, remove, contain,
treat, detoxify or neutral-
ize, or in any way re-
spond to, or assess the
effects of pollutants.
Subparagraph d) i) does not
apply to "bodily injury" or
"property damage" arising out
of the escape of fuels, lubri-
cants or other operating fluids
which are needed to perform
the normal electrical, hydrau-
lic or mechanical functions
necessary for the operation of
"mobile equipment" or its
parts, if such fuels, lubricants
or other operating fluids es-
cape from a vehicle part de-
signed to hold, store or re-
ceive them. This exception
does not apply if the fuels,
lubricants or other operating
fluids are intentionally dis-
charged, dispersed or re-
leased; or if such fuels, lubri-
cants or other operating fluids
are brought on or to the
premises, site or location with
the intent to be discharged,
dispersed or released as part
of the operations being per-
formed by such insured,
contractor or subcontractor.
Subparagraphs a) and d) 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, re-
move, contain, treat, detoxify
or neutralize, or in any way
respond to, or assess the ef-
fects of pollutants; or
b) Claim or "suit" by or on be-
half of a governmental
authority for damages be-
cause of testing for, monitor-
ing, cleaning up, removing,
containing, treating, detoxify -
BP 71 08 (Ed. 04 96) Page 4 of 20 Printed in U.S.A.
ing or neutralizing, or in any
way responding to, or assess-
ing the effects of pollutants.
Pollutants means any solid, liquid,
gaseous or thermal irritant or con-
taminant, including smoke, vapors,
soot, fumes, acids, alkalis, chemicals
and waste. Waste includes materials
to be recycled, reconditioned or re-
claimed.
However, the exclusion above does
not apply to "bodily injury" or damage
to personal property of others, includ-
ing all resulting loss of use of such
property,, occurring on any premises,
site or location which is owned by or
rented to any insured, resulting from
the suddenand accidental discharge,
dispersal, release or escape of pollut-
ants on such premises, site or loca-
tion.
g. Aircraft, Auto or Watercraft
"Bodily injury" or "property damage"
arising out of the ownership, mainte-
nance, 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 per-
sons or property for a charge;
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 owner-
ship, maintenance or use of air-
craft or watercraft; or
5) "Bodily injury" or "properly dam-
age arising out of the operation
of any of the following equip-
ment
a) Cherry pickers and similar
devices mounted on auto-
mobile or truck chassis and
used to raise or lower work-
ers; and
b) Air compressors, pumps and
generators, including spray-
ing, welding, building clean-
ing, geophysical exploration,
lighting and well servicing
equipment.
h. Mobile Equipment'
"Bodily injuryor "property damage"
arising out of:
1) The transportation of "mobile
equipment" by an "auto" owned
or operated by or rented or
loaned to any insured; or
2) The use of "mobile equipment" in,
or while in practice for, or while
being prepared for, any prear-
ranged racing, speed or stunting
activity.
i. War
"Bodily injury or "property damage"
due to war, whether or not declared,
or any act or condition incident to
war. War includes civil war, insurrec-
tion, rebellion or revolution. This ex-
clusion applies only to liability as-
sumed under a contract or agree-
ment.
j. Professional Services
"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:
1) Legal, accounting or advertising
services;
BP 71 08 (Ed. 04 96) Page 5 of 20 Printed in U.S.A.
r
2) Preparing, approving, or failing to
prepare or approve maps, draw-
ings, opinions, reports, surveys,
change orders, designs or specifi-
cations;
3) Supervisory, inspection or engi-
neering services;
4) Medical, surgical, dental, x-ray or
nursing services, treatment, advice
or instruction;
5) Any health or therapeutic service,
treatment, advice or instruction;
6) Any service, treatment, advice or
instruction for the purpose of ap-
pearance or skin enhancement,
hair removal or replacement or
personal grooming.
7) Optometry or optical or hearing
aid services including the pre-
scribing, preparation, fitting, dem-
onstration or distribution of oph-
thalmic lenses or similar products
or hearing aid devices;
8) Ear piercing services; and
9) Services in the practice of phar-
macy; but this exclusion does not
apply to an insured whose opera-
tions include those of a retail
pharmacist or pharmacy.
This insurance does not apply to
'"bodily injury," "property damage,"
"personal injury" or "advertising
injury" caused by the willful viola-
tion of a penal statute or ordi-
nance relating to the sale of
pharmaceuticals by or with the
knowledge or consent of any in-
sured.
k. Damage to Property
"Property damage to:
1) Property you own, rent or oc-
cupy;
2) Premises you sell, give away or
abandon, if the "property dam-
age" 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 prop-
erty on which you or any contrac-
tor or subcontractor working di-
rectly_or indirectly on your behalf
is performing operations, if the
"property damage" arises out of
those operations; or
6) That particular part of any prop-
erty that must be restored, re-
paired or replaced because 'your
work" was incorrectly performed
on it.
Paragraph2) 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 as-
sumed under a sidetrack agreement.
Paragraph 6) of this exclusion does
not apply to "property damage" in-
cluded in the "products -completed
operations hazard."
1. Damage to Your Product
"Property damage" to "your product"
arising out of it or any part of it.
m. Damage to Your Work
"Property damage" to "your work"
arising out of it or any part of it and
included in the "products -completed
operations hazard."
This exclusion does not apply if the
damaged work or the work out of
which the damage arises was per-
formed on your behalf by a subcon-
tractor.
BP 71 08 (Ed. 04 96) Page 6 of 20 Printed in U.S.A.
n. Damage to Impaired Property or
Property Not Physically Injured
"Property damage" to "impaired prop-
erty" 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 any-
one acting on your behalf to
perform a contract or agreement
in accordance with its terms.
This exclusion does not apply to the
loss of use of other property arising
out of sudden and accidental physical
injury to "your product" or "your work'
after it has been put to its intended
use.
o. Recall of Products, ` Work or Im-
paired Property .
Damages claimed for any loss, cost or
expense incurred by you or others for
the loss of use, withdrawal, recall, in-
spection, repair, replacement, adjust-
ment, removal or- disposal of:
l) "Your product";
2) "Your work; or
3) "Impaired property"
if such product, work or property is
withdrawn or recalled from the mar-
ket or from use by any person or or-
ganization because of a known or
suspected defect, deficiency, inade-
quacy or dangerous condition in it.
p. Personal or Advertising Injury
"Personal injury" or "advertising injury":
1) Arising out of an offense commit-
ted by an insured whose business
is advertising, broadcasting, pub-
lishing, telecasting, or telemarket-
ing. However, this exclusion does
not apply to offenses a., b., c.
under the definition of "personal
injury";
2) Arising out of, or alleged to arise
out of, oral or written publication
of material, if done by or at the
direction of the insured with
knowledge of its falsity;
3) Arisingout of, or alleged to arise
out of, oral or written publication
of material whose first publication
took place before the beginning
of the policy period;
4) Arising out of, or alleged to arise
out of, the willful violation of a
penal statute or ordinance
committed by, at the direction of,
or with the knowledge or consent
of any insured;
5) Arising out of, or alleged to arise
out of, breach of contract;
6) Arising out of, or alleged to arise
out of, the failure of goods, prod-
ucts or services to conform with
advertised quality or perform-
ance;
7) Arising out of, or alleged- to arise
out of, the wrong description of
the price of goods, products or
services;
8) Arising out of, or alleged to arise
out of, infringement of patent,
trademark, service mark, trade
name, trade dress, trade secrets,
or copyright, other than copy-
righted advertising materials;
9) Arising out of, or alleged to arise
out of, unfair competition;
10) Arising out of, or alleged to arise
out of, antitrust violations;
11) Arising out of, or alleged to arise
out of, the rendering or failure to
render any professional service;
12) For which the insured is obligated
to pay damages by reason of the
assumption of liability in a con-
tract or agreement. This exclu-
sion does not apply to liability for
damages that the insured would
BP 71 08 (Ed. 04 96) Page 7 of 20 Printed in U.S.A.
f
have in the absence of the con-
tract or agreement; or
13) Arising out of, or alleged to arise
out of, the actual, alleged or
threatened discharge, dispersal,
seepage, migration, release or es-
cape of pollutants at any time.
This exclusion also applies to any
loss, cost or expense arising out of
any:
a) Request, demand or order
that any insured or others test
for, monitor, clean-up, re-
move, contain, treat, detoxify
or neutralize, or in any way
respond to, or assess the ef-
fects of pollutants; or
b) Claimor "suit" by or on be-
half of a governmental
authority for damages be-
cause of testing for, monitor-
ing, cleaning up, removing,
containing, treating, detoxify-
ing or neutralizing, or in any
way responding to, or assess-
ing the effects of pollutants.
Pollutants mean any solid, liquid,
gaseous or thermal irritant or
contaminant, including smoke,
vapor, soot, fumes, acids, alkalis,
chemicals and waste. Waste in-
cludes materials to be recycled,
reconditioned or reclaimed.
q. Employment -Related Practices
"Bodily injury" or "personal injury" to:
1) A person arising out of any:
a) Refusal to employ that per-
son;
b) Termination of that person's
employment; or
c) Employment -related prac-
tices, policies, acts or omis-
sions, such as coercion, de-
motion, evaluation, reassign-
ment, discipline, defamation,
harassment, humiliation, or
discrimination directed at that
person; or
2) The spouse, child, parent, brother
or sister of that person as a con-
sequence of "bodily injury" or
"personal injury" to that person at
whom any of the employment -
related practices described in
paragraphs a), b) or c) above is
directed.
This exclusion applies:
1) Whether the insured may be li-
able as an employer or in any
- other capacity; and
2) To any obligation to share dam-
ages with or repay someone else
who must pay damages because
of the injury.
r. Asbestos
"Bodily injury" or "property damage" of
any nature whatsoever, caused by,
arising out of or relating in any way to
asbestos or any asbestos containing
product or material, or to the use, in
stallation, removal, withdrawal or dis-
posal of any such product or material.
Exclusions c., d., e., f., g., h., L, k., I., m., n.
and o. do not apply to damage by fire,
lightning, sprinkler leakage or explosion to
premises while rented to you or temporar-
ily occupied by you with permission of the
owner. A separate Limit of Insurance ap-
plies to this coverage as described in Sec-
tion D -- LIABILITY AND MEDICAL EX-
PENSES LIMITS OF INSURANCE.
2. Applicable to Medical Expenses Cover-
age
We will not pay expenses for "bodily in-
jury 11:
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.
BP 71 08 (Ed. 04 96) Page 8 of 20 Printed in U.S.A.
d. To a person, whether or not an
"employee" of any insured, if benefits
for the "bodily injury" are payable or
must . be 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, insurrec-
tion, rebellion or revolution.
3. Applicable to both Business Liability
Coverage and Medical Expenses Cover-
age --- Nuclear Energy Liability Exclu-
sion
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 an in-
sured under a nuclear energy li-
ability policy issued by Nuclear
Energy Liability Insurance Asso-
ciation, Mutual Atomic Energy Li-
ability Underwriters or Nuclear
Insurance Association of Canada,
or would be an insured under
any such policy but for its termi-
nation upon exhaustion of its limit
of liability; or
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, or any agency
thereof, under any agreement
entered into by the United
States of America,' or any
agency thereof, with any per-
son 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 opera-
tion of a "nuclear facilityby any per-
son or organization.
c. Under Business Liability Coverage, to
"bodily injury" or "property damage"
resulting from the "hazardous proper-
ties" of "nuclear material," if:
1) The "nuclear material":
a) Is at any "nuclear facility"
owned by, or operated by or
oil behalf of an insured; or
b) Has been discharged or dis-
persed therefrom;
2) The "nuclear material" is con-
tained in "spent fuel" or "waste" at
any time possessed, handled,
used, processed, stored, trans-
ported or disposed of by or on
behalf of an insured; or
3) , The "bodily injury" or "property
damage' arises out of the furnish-
ing by an insured of services,
materials, parts or equipment in
connection with the planning,
construction, maintenance, op-
eration or use of any "nuclear
facility; but if such facility is lo-
cated within the United States of
America, its territories or posses-
sions or Canada, this exclusion 3)
applies only to "property damage"
to such "nuclear facility" and any
property thereat.
BP 71 08 (Ed. 04 96) Page 9 of 20 Printed in U.S.A.
As used in this exclusion:
"by-product material" has the meaning
given it in the Atomic Energy Act of 1954
or in any law amendatory thereof;
"hazardous properties" include radioac-
tive, toxic or explosive properties;
''nuclear facility" means:
"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;
a) Any "nuclear reactor"; "spent fuel" means any fuel element or
fuel component, solid or liquid, which has
b) Any equipment or device de- been used or exposed to radiation in a
signed or used for: "nuclear reactor";
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 mate-
rial" 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
and includes the site on which any of the
foregoing is located, all operations con-
ducted on such site and all premises used
for such operations;
"nuclear material" means "source mate-
rial," "special nuclear material' or "by-
product material;
"nuclear reactor" means any apparatus
designed or used to sustain nuclear fission
in a self-supporting chain reaction or to
contain a critical mass of fissionable mate-
rial;
"waste" means any waste material:
a) Containing "by-product material"
other than the tailings or wastes
produced by the extraction or
concentration of uranium or tho-
rium from any ore processed
primarily for its "source material'
content; and
b) Resulting from the operation by
any person or organization of any
"nuclear facility' included under
paragraphs a) and b) of the
definition of "nuclear facility."
C. WHO IS AN INSURED
1. If you are designated in the Declarations
as:
a. An individual, you and your spouse
are insureds, but only with respect to
the conduct of a business of which
you are the sole owner.
b. A partnership or joint venture, you are
an insured. Your members, your part-
ners and their spouses are also in-
sureds, but only with respect to the
conduct of your business.
c. A limited liability company, you are
an insured. Your members are also in-
sureds, but only with respect to the
conduct of your business. Your man-
agers are insureds, but only with re-
spect to their duties as your managers.
BP 71 08 (Ed. 04 96) Page 10 of 20 Printed in U.S.A.
d. An organization other than a partner-
eration, they are insured with
• ship, joint venture or limited liability
respect to their providing or
company, you are an insured. Your
failing to 'provide professional
"executive officers" and directors are
health care services; or
insureds, but only with respect to their
duties as your officers or directors.
2) "Property damage" to property:
Your stockholders are also insureds,
but only with respect to their liability
a) Owned, occupied or used
as stockholders.
by,
2. Each of the following is also an insured:
b) Rented to, in the care, cus-
tody or control of, or over
a. Your "employees," other than either
which physical control is be -
your "executive officers" (if you are an
ing exercised for any purpose
organization other than a partnership,
by
joint venture or limited liability com-
pany) or your managers (if you are a
you, any of your "employees," any
limited liability company), but only for
partner or member (if you are a
acts within the scope of their em-
partnership or joint venture) or
ployment by you or while performing
any member (if you are a limited
duties related to the 'conduct of your
liability company).
business. However, no "employee" is
an insured for:
b. Any person (other than your
"employee"), or any organization while
1) "Bodily injury' or"personal injury":
acting as your real estate manager.
a) To you, to your partners or
c. Any person or organization having
members (if you are a part-
proper temporary custody of your
nership or joint venture), to
property if you die, but only:
your members (if you are a
limited liability company), or
1) With respect to liability arising out
to a co -"employee" while that
of the maintenance or use of that
co -"employee" is either in the
property; and `
course of his'or her employ-
ment or performing duties
2) Until your legal representative has
related to the conduct of
been appointed.
your business;
d. Your legal representative if you die,
b) To the spouse, child, parent,
but only with respect to duties as
brother or sister of that co-
such. That representative will have all
"employee" as a consequence
your rights and duties under this pol-
of paragraph 1) a) above;
icy.
c) For which there is any obli-
3. With respect to "mobile equipment" regis-
gation to shame damages with
tered in your name under any 'motor ve-
or repay someone else who
hicle registration law, any person is an in -
must paydamages of the in-
sured while driving such equipment along
jury described in paragraphs
a public highway with your permission.
1) a) or b); or
Any other person or organization respon-
sible for the conduct of such person is
d) Arising out of his or her pro-
also an insured, but only with respect to
viding or failing to provide
liability arising out of the operation of the
professional health care
equipment, and only if no other insur-
services. However, if you
ance of any kind is available to that per -
have "employees" who are
son or organization for this liability. How -
pharmacists in your retail
ever, no person or organization is an in -
pharmacist or pharmacy op-
sured with respect to:
BP 71 08 (Ed. 04 96) Page 11 of 20
Printed in U.S.A.
a. "Bodily injury" to a co -"employee" of
one person is the Medical Expenses limit
the person driving the equipment; or
shown in the Declarations.
b. "Property damage" to property owned
3. The most we will pay under Business Li -
by, rented to, in the charge of or oc-
ability Coverage for damages because of
cupied by you or the employer of any
"property damage" to premises while
person who is an insured under this
rented to you or temporarily occupied by
provision.
you with permission of the owner arising
out of any one fire, lightning, sprinkler
4. Any person or organization who leases or
leakage or explosion is the Fire Legal Li -
rents a portion of your premises to whom
ability limit shown in the Declarations.
or to which you are obligated by virtue of
a written contract or agreement is an in-
4. Aggregate Limits
sured, but only with respect to liability
arising out of your ownership, mainte-
The most we will pay for:
nance or repair of that portion of the
premises which is not reserved for the ex-
a. Injury or damage under the "products-
clusive use or occupancy of such person
completed operations hazard" arising
or organization or any other tenant or les-
from all "occurrences" during the pol-
see.
icy period is the Products -Completed
Operations Aggregate Limit shown in
No person or organization is an insured with
the Declarations.
respect to the conduct of any current or past
partnership, joint venture or limited liability
b. All other injury or damage, including
company that is not shownas a Named In-
medical expenses, arising from all
sured in the Declarations.
"occurrences" during the policy period
is the General Aggregate Limit shown
D. LIABILITY AND MEDICAL EXPENSES LIMITS
in the Declarations.
OFINSURANCE
This General Aggregate Limit applies
1. The. Limits of Insurance shown in the
separately to each of your locations
Declarations and the rules below fix the
owned by or while rented to you, or
most we will pay regardless of the number
temporarily occupied by you with
of:
permission of the owner.
a. Insureds;'
Location means premises involving the
same or connecting lots, or premises
b. Claims made or "suits" brought; or
whose connection is interrupted only
by a street, roadway, or right-of-way
c. Persons or organizations making
of a railroad.
claims or bringing "suit."
This aggregate limit does not apply to
2. The most we will pay for the sum of all
"property damage" to premises while
damages because of all;
rented to you or temporarily occupied
by you with permission of the owner
a. "Bodily injury," "property damage" and
arising out of fire, lightning, sprinkler
medical expenses arising out of any
leakage or explosion.
one "occurrence," and
5. Priority Condition
b. "Personal injury" and "advertising in-
jury" sustained by any one person or
In the event a claim or "suit" is brought
organization
against more than one insured, due to
"bodily injury," "property damage,"
is the Liability and Medical Expenses limit
"personal injury" or "advertising injury" from
shown in the Declarations. But the
the same "occurrence" or offense, we will
most we will pay for all medical expenses
apply the Limits of Insurance in the follow -
because of "bodily injury" sustained by any
ing order:
BP 71 08 (Ed. 04 96) Page 12 of 20 Printed in U.S.A.
a. You;
b. Your "executive officers," directors,
stockholders, or "employees"; and
c. Any other insured in any order that
we choose. '
The Limits of Insurance 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 pol-
icy 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 Insur-
ance.
E. LIABILITY AND MEDICAL EXPENSES GEN-
ERAL CONDITIONS
1. Bankruptcy
Bankruptcy or insolvency of the insured or
of the insured's estate will not relieve us of
our obligations under this policy.
2. ' Duties In The Event Of Occurrence, Of-
fense, Claim Or Suit
a. You must see to it that we are notified
as soon as practicable of an
"occurrence" or an offense which may
result in a claim. To the extent possi-
ble, 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
3.
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, summons
or legal paper received in con-
nection with the claim or "suit';
2) Authorize us to obtain records
and other information;
3) Cooperate with us in the investi-
gation or settlementof the claim,
or defense against the "suit"; and
4) Assist us, upon our request, in the
enforcement of any right against
any person or organization that
may be liable to the insured be-
cause of injury or damage to
which this insurance may also
apply:
d. No insured will, ` except at that in-
sured's own cost, voluntarily make a
payment, assume any obligation, or
incur any expense, other than for first
aid, without our consent.
Financial 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 and "property
damage" 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 motor-
ists, underinsured motorists, no-fault
or other coverage required by any
motor vehicle law. We will provide
the -required limits for those cover-
ages.
BP 71 08 (Ed. 04 96) Page 13 of 20 Printed in U.S.A.
c
4. Legal Action Against Us
No .person or organization has a right un-
der this policy:
a. To join us as a party or otherwise
bring us into a "suit" asking for dam-
ages from an insured; or
b. To sue us on this policy unless all of
its terms have been fully complied
with.
A person or organization may sue us to
recover on an agreed settlement or on a
final judgment against an insured obtained
after an actual trial; but we will not be li-
able for damages that are not payable un-
der the terms of this policy or that are in
excess of the applicable limit of insurance.
An agreed settlement means a settlement
and release of liability signed by us, the in-
sured and the claimant or the claimant's
legal representative.
5. Separation Of Insureds
Except with respect to the Limits of Insur-
ance, 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. 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 the liability coverage
in this policy, except as provided below.
1. Additional Insureds -- By Contract,
Agreement or Permit
The following paragraph is added to
WHO IS AN INSURED (SECTION Q:
5. Any person or organization designated
in the Declarations to whom or to
which you are obligated by virtue of a
written contract, agreement or permit
to provide such insurance as afforded
by this policy is an insured, but only
with respect to liability arising out of:
a. Your ongoing operations for that
insured by you;
b. Permits issued by state or political
subdivisions for operations per-
formed by you; or
c. Premises you own, rent, occupy
or use.
This provision does not apply unless
the written contract or agreement has
been executed, or the permit has
been issued, prior to the "bodily in-
jury," "property damage," "personal
injury" or "advertising injury."
This provision does not apply to any
person or organization included as an
insured under Additional Insureds --
Vendors.
2. Hired Auto and Non -Owned Auto Liabil-
ity
a. Insurance is provided only when indi-
cated in the Declarations.
1) Hired Auto Liability
The insurance provided under
this coverage form, paragraph
A.1., Business Liability, applies to
"bodily injury" or "property dam-
age" arising out of the mainte-
nance or use of a "hired auto" by
you or your "employees in the
course of your business.
2) Non -Owned Auto Liability
The insurance provided under
this coverage form, paragraph
A.1., Business Liability, applies to
"bodily injuryor "property dam-
age" arising out of the use of any
"non -owned auto" in your busi-
ness by any person other than
you.
b. For insurance provided by this op-
tional coverage only:
BP 71 08 (Ed. 04 96) Page 14 of 20 Printed in U.S.A.
1) The exclusions, under this cover-
age form, paragraph B.1., Appli-
cable to Business Liability Cover-
age, other than exclusions a., b.,
d., f. and i. and the Nuclear En-
ergy Liability Exclusion, are de-
leted and replaced by the follow-
ing:
a) "Bodily injury to:
1) An "employee" of the in-
sured arising out of and
in the course of:
a) Employment by the
insured; or
b) Performing duties
related to the con-
duct of the insured's
business; or
2) The spouse, child, par
ent, brother or sister of
that "employee" as a con-
sequence of paragraph
1) above.
This exclusion applies:
a) Whether the insured may
be liable as an employer
or in any other capacity;
and
b) To any obligation to
share damages with or
repay someone else who
must pay damages be-
cause of injury.
This exclusion does not apply
to:
i) Liability assumed by the
insured under an
"insured contract"; or
ii) "Bodily injury" arising out
of and in the course of
domestic employment by
the insured unless bene-
fits for such injury are in
whole or in part either
payable or required to
be provided under any
workers compensation
law.
b) "Property damage" to:
1) Property owned or being
transported by, or rented
or loaned to the insured;
or
2) Property in the care,
custody or control of the
insured.
2) WHO IS AN INSURED in this
coverage form, paragraph C., is
replaced by the following:
Each of the following is an in-
sured under this Optional Cover-
age to the extent set forth below:
a) You;
b) Any other person using a
"hired auto" with your per-
mission;
c) for a "non -owned auto," any
partner or "executive officer"
Of yours, but only while such
"non -owned auto is being
used in your business; and
d) Any other person or- organi-
zation, but only for their li-
ability ' because of acts or
omissions of an insured under
a), b) or c) above.
Nome of the following is an in-
sured:
1) Any person engaged in the
business of his or her em-
ployer for "bodily injury to
any co -"employee" of such
person injured in the course
of employment, or to the
spouse, child, parent, bro-
ther, or sister of that co -
"employee" as a consequence
of such "bodily injury," or for
any obligation to share dam-
ages with or repay someone
else who must pay damages
because of the injury;
BP 71 08 (Ed. 04 96) Page 15 of 20 Printed in U.S.A.
C
2) Any partner or "executive of-
ficer" for any "auto" owned
by such partner or officer or
a member of his or her
household;
3) Any person while employed
in or otherwise engaged in
duties in connection with an
"auto business," other than an
"auto business" you operate;
4) The owner or lessee (of
whom you are a sublessee) of
a "hired auto" or the owner
of a "non -owned auto" or any
agent or "employee" of any
such owner or lessee; or
5) Any person or organization
for the conduct of any cur-
rent or past partnership, joint
venture, or limited liability
company that is not shown as
a Named Insured in the
Declarations.
c. The following additional definitions
apply:
1) "Auto Business" means the busi-
ness or occupation of selling, re-
pairing, servicing, storing or park-
ing "autos.
2) "Hired Auto" means any "auto"
you lease, hire or borrow. This
does not include any "auto" you
lease, hire or borrow from any of
your "employees" or members of
their households, or from any
partner or "executive officer" of
yours.
3) "Non -Owned Auto" means any
"auto" you do not own, lease, hire
or borrow which is used in con-
nection with your business. How-
ever, if you are a partnership, a
"non -owned auto does not in-
clude any "auto" owned by any
partner.
3. Additional Insured -- Lessor of Leased
Equipment
When the lessor of the leased equipment
or machinery is shown in the Declarations:
a. Paragraph C., WHO IS AN INSURED,
in this coverage form is amended to
include the person or organization
shown in the Declarations as an in-
sured, but only with respect to liability
arising out of the maintenance, op-
eration or use by you of equipment
leased to you by such person(s) or or-
ganization(s).
b. The following exclusions are added:
This insurance does not apply to:
1) Any 'occurrence" that takes place
after the equipment lease expires
or
2) To "bodily injury' or "property
damage" arising out of the sole
negligence of the person or or-
ganization shown in the Declara-
tions.
4. Additional Insured -- Grantor of Fran-
chise
The following is added to paragraph C.,
WHO IS AN INSURED:
The person or organization shown in the
Declarations is also an insured, but only
with respect to their liability as a grantor of
a franchise to you. This Optional Coverage
does not apply to any 'occurrence" which
takes place after the franchise agreement
is terminated or after the expiration of this
policy.
G. LIABILITY- AND MEDICAL EXPENSES DEFI-
NITIONS
1. "Advertising injury" means injury, other
than "bodily injury' or "personal injury,"
arising solely out of one or more of the
following offenses committed in the course
of "your advertising activities":
a. Misappropriation of advertising ideas;
BP 71 08 (Ed. 04 96) Page 16 of 20 Printed in U.S.A.
b. Infringement of copyrighted advertis-
ing materials;
c. Oral or written publication of material
that slanders or libels a person or or-
ganization or disparages a person's or
organization's goods, products or
services; or
d.Oral or written publication of material
that violates a person's right of pri-
vacy.
2. "Auto means a land motor vehicle, trailer
or 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, sick-
ness or disease sustained by a person, in-
cluding death, shock, mental anguish or
mental injury by that person at any time
which results as a consequence of the
bodily injury, sickness or disease.
4. "Coverage Territory" means:
a. The United States of America
(including its territories and posses-
sions), Puerto Rico and Canada;
b. International waters or airspace, pro-
vided the injury or damage does not
occur in the course of travel or trans-
portation to or from any place not in-
cluded in a. above; or
c. All parts of the world if:
1) The injury or damage arises out
of:
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 de-
scribed in a. above or in a settle-
ment we agree to.
5. "Employee" includes a "leased worker."
"Employee" does not include a "temporary
worker."
6. "Executive Officer means a person
holding any of the officer positions created
by your charter, constitution, by-laws or
any other similar governing document.
7. "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 agreerent.
8. "Insured Contract" means:
a. A contract for 'a lease of premises.
However, that portion of the contract
for a lease of premises that indemni-
fies any person or organization for
damage by fire, lightning, sprinkler
leakage or explosion to premises
while rented to you or temporarily
occupied by you with -permission of
the owner is not an "insured contract";
b. A sidetrack agreement;
c. - Any easement or license agreement,
except in connection with construc-
tion or demolition operations on or
within 50 feet of a railroad;
d. An obligation, as required by ordi-
nance, to indemnify a municipality,
except in connection with work for a
municipality;
e. An, elevator maintenance agreement;
or
BP 71 08 (Ed. 04 96) Page 17 of 20 Printed in U.S.A.,
l
f. That part of any other contract or
�
10. "Loading or Unloading" means the han-
agreement pertaining to your business
dling of property:
(including an indemnification of a
municipality in connection with work
a. After it is moved from the place
performed for a municipality) under
where it is accepted for movement
which you assume the tort liability of
into or onto an aircraft, watercraft or
another party to pay for "bodily injury'
"auto';
or "property damage" to a third per-
son or organization. Tort liability
b. While it is in or on an aircraft, water -
means a liability that would be im-
craft or "auto"; or
posed by law in the absence of any
contract or agreement.
c. While it is being moved from an air-
craft, watercraft or "auto" to the place
Paragraph f. does not include that
where it is finally delivered
part of any contractor agreement:
but "loading or unloading" does not in-
1) That indemnifies a- railroad or 'or-
clude the movement of property by
ganization for "bodily injury" or
means of a mechanical device, other than
"property damage" arising out of
a hand truck, that is not attached to the
construction or demolition opera-
aircraft, watercraft or "auto."
tions, within 5o feet of any rail-
road property and affecting any
11. "Mobile Equipment" means any of the
railroad bridge or trestle, tracks,
following types of land vehicles, including
road- beds, tunnel, underpass or
any attached machinery or equipment:
crossing,
a. Bulldozers, farm machinery, forklifts
2) That indemnifies an architect,
and other vehicles designed for use
engineer or surveyor for injury or
principally off public roads;
damage arising out of:
b. Vehicles maintained for use solely on
a) Preparing, approving or fail-
or next to premises you own or rent;
ing to prepare or approve
maps, drawings, opinions, re-
c. Vehicles that travel on crawler treads;
ports, surveys, change orders,
designs or specifications; or
d. Vehicles, whether self-propelled or
not, on which are permanently
b) Giving directions or instruc-
mounted:
tions, or failing to give them,
if that is the primary cause of
1) Power cranes, shovels, loaders,
the injury or damage.
diggers or drills; or
3) Under which the insured, if an
2) Road construction or resurfacing
architect, engineer or surveyor,
equipment such as graders,
assumes liability for an injury or
- scrapers or rollers;
damage arising out of the in-
sured's rendering or failure to
e. Vehicles not described in a., b., c. or
render professional services, in-
d. above that are not self-propelled
cluding those listed in 2) above
and aremaintained primarily to pro -
and supervisory, inspection or
vide mobility to permanently attached
engineering services.
equipment of the following types:
9. "Leased. worker" means a person leased
1) Air compressors, pumps and gen-
to you by a labor leasing firm under an
erators, including spraying, weld -
agreement between you and the labor
ing, building cleaning, geophysical
leasing firm, to perform duties related to
exploration, lighting and well
the conduct of your business. "Leased
servicing equipment; or
worker" does not include `-a "temporary
worker."
BP i1 08 (Ed. 04 96) Page 18 of 20
Printed in U.S.A.
r
2) Cherry pickers and similar devices
used to raise or lower workers;
f. Vehicles not described 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:
a) Snow removal;
b) Road , maintenance, but not
construction or resurfacing; or
c) Street cleaning;
2) Cherry pickers and similar devices
mounted on automobile or truck
chassis and used to raise or lower
workers; and
3) Air compressors, pumps and gen-
erators, including spraying, weld-
ing, building cleaning, geophysical
exploration, lighting and well
servicing equipment.
12. "Occurrence" means an accident, includ-
ing continuous or repeated exposure to
substantially the same general harmful
conditions.
For the purpose of determining the limits
of insurance for professional health care
services as a pharmacist, any act or omis-
sion together with all related acts or orris-
sions in the furnishing of these services to
any one person will be considered one
"occurrence." -
13. "Personal Injury" means injury, other than
"bodily injury" or "advertising injury," arising
solely out of one or more of the following
offenses:
a. False -arrest, detention or imprison-
ment;
b. Malicious prosecution;
c. The wrongful eviction from, wrongful
entry into, or invasion of the right of
private occupancy of a room, dwell-
ing or premises that a person or or-
ganization occupies, if committed by
or on behalf of its owner, landlord or
lessor;
d. Oral or written publication of material
that slanders or libels a person or or-
ganization 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 pri-
vacy.
14. 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 dam
age" must occur away from premises
you own or rent, unless your business
includes the selling, handling or d1stri-
bution of "your product" for con-
sumption on premises you own or
rent.
b. "Your work will be deemed corn-
pleted at the earliest of the following
times:
1) When all of the work called for in
your contract has been com-
pleted.
2) When all of the work to be done
at the job site has been com-
pleted if your contract -calls for
work at more than one job 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 work-
ing on the sarne project.
BP 71 08 (Ed. 04 96) Page 19 of 20 Printed in U.S.A.
r
Work that may need service, mainte-
nance, correction, repair or replace-
ment, but which is otherwise com-
plete, will be treated as completed.
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 ve-
hicle not owned or operated ` by
you, and that condition was cre-
ated by the "loading or unloading"
of that vehicle by any insured; or
2) The existence of tools, uninstalled
equipment or abandoned or un-
used materials.
15. "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.
16. "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 alleging
such damages to which the insured
must submit or does submit with our
consent; or
b. Any other alternative dispute resolu-
tion proceeding in which such dam-
ages are claimed and to which the in-
sured submits with our consent.
17. "Temporary worker" means a person
who is furnished to you to substitute for a
permanent "employee" on leave or to
meet 'seasonal or short-term workload
conditions.
18. "Your advertising activities" means the
promotion of your goods, products, sery
ices, name or image through printed or
electronic media.
19. "Your Product" means:
a. Any goods or products, other than
real property, manufactured, sold,
handled, distributed or disposed of
by:
1) You;
2) Others trading under your name;
or
3) A person or organization whose
business or assets you have ac-
quired; and
b. Containers (other than vehicles), ma-
terials, parts or equipment furnished
in connection with such goods or
products.
"Your product" includes:
a. Warranties or representations made at
any time with respect to the fitness,
quality, durability, performance or use
of "your product"; and
b. 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.
20. "Your Work" means:
a. Work or operations performed by you
or on your behalf; and
b. Materials, parts or equipment fur-
nished in connection with such work
or operations,
"Your work" includes:
a. Warranties or representations made at
any time with respect to the fitness,
quality, durability, performance or use
of "your work"; and
b. The providing of or failure to provide
warnings or instructions.
Includes copyrighted material of the Insurance Services Office with its permission.
BP 71 08 (Ed. 04 96) Page 20 of 20 Printed in U.S.A.
BUSINESSOWNERS
COMMON POLICY CONDITIONS
�®
All coverages of this policy are subject to the following conditions.
A. CANCELLATION
b) An outstanding demolition or-
der; or
1. The first Named Insured shown in the
Declarations may cancel this policy by
0 Been declared unsafe by gov-
mailing or delivering to us advance written
ernmental authority.
notice of cancellation.
4) Fixed and salvageable items have
2.; We may cancel this policy by mailing or
been or are being removed from
delivering to the first Named Insured writ-
the building and are not being
ten notice of cancellation at least:
replaced. This does not apply to
such removal that is necessary or
a. 5 days before the effective date of
incidential to . any renovation or
cancellation if any one of the following
remodeling:
conditions exists at any building that is
Covered Property in this policy.
5) Failure to:
1) The building has been vacant or
a) Furnish necessary heat, water,
unoccupied 60 or more consecu-
sewer service or electricity for
tive days. This does not apply to:
30 consecutive days or more,
-
except during a period of sea -
a) Seasonal unoccupancy; or
sonal unoccupancy; or
b) Buildings in the course of
b) Pay property taxes that are
construction, renovation or
owing and have been out -
addition.
standing for more than one
year following the date due,
Buildings with 65/0 or more of the
except that this provision will
rental units or floor area vacant or
not apply where you are in a
unoccupied are considered unoc-
bona fide dispute with the
cupied under this provision.
taxing authority regarding
payment of such taxes.
2) After damage by a covered cause
of loss, permanent repairs to the
b. 10 days before the effective date of
building:
cancellation`` if we cancel for nonpay-
inent of premium.
a) Have not started, and
c. 30 days before the effective date of
b) Have not been contracted
cancellation if we cancel for any other
for,
reason.
within 30 days of initial payment 3.
We will mail or deliver our notice to the
of loss.
first NamedInsureds last mailing address
known to us.-
3) The buildings has:
4.
Notice of cancellation will state the effec-
a) An outstanding" order to va-
tive date of cancellation. The policy period
cate;
will end on that date.
BP 71 10 (Ed. 04 96) Page 1 of 4
Printed in U.S.A.
5. If this policy is cancelled, we will send the
first Named Insured any premium refund
due. If we cancel, the refund will be pro
rata. If the first Named Insured cancels, the
refund may be less than pro rata. The can-
cellation will be effective even if we have
not made or offered a refund.
6. If the first Named Insured cancels this pol-
icy on any date other than the effective
date or anniversary date, we will retain at
least $500 as the minimum retained pre-
mium.
7. If notice is mailed, proof of mailing will be
sufficient proof of notice.
B. CHANGES
This policy contains all the agreements be-
tween you and us concerning the insurance
afforded. The first Named Insured shown in the
Declarations is authorized to make changes in
the terms of this policy with our consent. This
policy's terms can be amended or waived only
by endorsement issued by us and made a part
of this policy.
C. CONCEALMENT, MISREPRESENTATION OR
FRAUD
This policy is void in any case of fraud by you
as it relates to this policy at any time. It is also
void if you or any other insured, at any time,
intentionally conceal or misrepresent a material
fact concerning:
1. This policy;
2. The Covered Property;
3. Your interest in the Covered Property; or
4. A claim under this policy.
D. EXAMINATION OF YOUR BOOKS AND RE-
CORDS
We may examine and audit your books and
records as they relate to this policy at any time
during the policy period and up to three years
afterward.
E. INSPECTIONS AND SURVEYS
We have the right but are not obligated to:
1. Make inspections and surveys at any time;
2. Give you reports on the conditions we
find; and
3. Recommend changes.
Any inspections, surveys, reports or recom-
mendations relate only to insurability and the
premiums to be charged. We do not make
safety inspections. We do not undertake to
perform the duty of any person or organization
to provide for the health or safety of workers or
the public. And we do not warrant that condi-
tions:
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 inspec-
tions, surveys, reports or recommendations._
F. INSURANCE UNDER TWO OR MORE COV-
ERAGES
If two or more of the policy's coverages apply
to the same loss or damage, we will not pay
more than the actual amount of the loss or
damage.
G. LIBERALIZATION
If we adopt any revision that would provide
more coverage under this policy without addi-
tional premium charge, your policy will auto-
matically provide the additional coverage as of
the day the revision is effective in your state.
H. OTHER INSURANCE
1. If there is other insurance covering the
same loss or damage, we will pay only for
the amount of covered loss or damage in
excess of the amount due from that other
insurance, whether you can collect on it or
not. But we will not pay more than the
applicable Limit of Insurance.
$P 71 10 (Ed. 04 96) Page 2 of 4 Printed in U.S.A.
2. Businessowners 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 Businessowners Liabil-
ity Coverage to defend any claim or "suit"
that any other insurer has a duty to de-
fend. 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 all
premiums; and
b. Will be the payee for any return pre-
miums 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 corn-
pute 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 pe-
riod. The premium must be:
a. Paid to us prior to the anniversary
date; and
b. Determined in accordance with para-
graph 2. above.
Out- forms then in effect will apply. If you
do not pay the continuation premium, this
policy will expire on the first anniversary
date that we have not received the pre-
mium.
4. Undeclared exposures or change in your
business. operation, acquisition or use of
locations may occur during the policy pe-
riod that are not shown in the Declara-
tions. If so, we may require an additional
premium. That premium will be deter-
mined in accordance with our rates and
rules then in effect.
J. TRANSFER OF RIGHTS OF RECOVERY
AGAINST OTHERS TO US
1. Applicable to Businessowners Property
Coverage:
If any person or organization to or for
whom we make payment under this policy
has rights to recover damages from an-
other, 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 Prop-
erty.
b. After a loss to your Covered Property
only if, at time of loss, that party is one
of the following:
1) Someone insured by this insur-
ance;
2) A business firm`
a) Ownedor controlled by you
or
b) That owns or controls you; or
3) Your tenant.
You may also accept the usual bills of lad-
ing or shipping receipts limiting the liability
of carriers.
This will not restrict your insurance.
2. Applicable To Businessowners ' Liability
Coverage:
If the insured has rights to recover all or
part of any payment we have made under
this policy, those rights are transferred to
us. The insured must do nothing after loss
to impair them. At our request, the insured
will bring "suit" or transfer those rights to us
and help us enforce them. This condition
does not apply to Medical Expenses Cov-
erage.
BP 71 10 (Ed. 04 96) Page 3 of 4 Printed in'U.S.A.
K. TRANSFER OF YOUR RIGHTS AND DUTIES If you die, your rights and duties will be trans -
UNDER THIS POLICY ferred to your legal representative but only
while acting within the scope of duties ,as your
Your rightsand duties under this policy may legal representative. Until your legal represen-
not be transferred without our written consent tative is appointed, anyone having proper tem-
except in the case of death of an individual porary custody of your property will have your
Named Insured. rights and duties but only with respect to that
property.
BP 71 10 (Ed. 04 96) Page 4 of 4 Printed in U.S.A.
TRANSFER OF RIGHTS OF RECOVERY
PCOMPER0
AGAINST OTHERS TO US
THIS ENDORSEMENT CHANGES THE POLICY.
PLEASE READ IT CAREFULLY.
This endorsement modifies insurance provided under the following:
BUSINESSOWNERS POLICY
Paragraph 2. of the TRANSFER OF RIGHTS OF RE- .
a loss to impair these rights. At our request,
COVERY AGAINST OTHERS TO US Condition,
the insured will bring "suit' or transfer those
Businessowners Common Policy Conditions, is re-
rights to us and help us enforce them. This
placed by the following:
condition does not apply to Medical Ex-
penses Coverage.
2. Applicable to Businessowners Liability Cover-
age: b.
After a loss you may waive your rights
against another party in writing, only if, at
a. If the insured has rights to recover all or
the time of loss, that party is one of the fol-
part of any payment we have made under
lowing:
this policy, those rights are transferred to us.
This insurance shall not be invalidated
A business firm:
should the Named Insured waive in writing,
prior to a loss, any or all might of recovery
1) Owned or controlled b you; or
y
against any party for a loss occurring.
2) That owns or controls you.
However, the insured must do nothing after
THIS ENDORSEMENT MUST BE ATTACHED TO A CHANGE ENDORSEMENT WHEN ISSUED AFTER THE POLICY
IS WRITTEN.
BP 86 03 (Ed. 10 90)
Printed in U.S.A.
ARCHITECTS AND ENGINEERS PROGRAM ENDORSEMENT
THIS ENDORSEMENT CHANGES THE POLICY.
PLEASE READ IT CAREFULLY.
This endorsement modifies insurance provided under the following:
BUSINESSOWNERS POLICY
A. Additional Insured
loss, any or all right of recovery against
any party for a loss occurring. How -
The following is added to paragraph C., WHO
ever, the insured must do nothing after
IS AN INSURED, of the Businessowners Liabil-
a loss to impair these rights. At our re-
ity Coverage Form, BP 71 08:
quest, the insured will bring "suit° or
transfer those rights to us and help us
All persons or organizations on file with the
enforce them. This condition does not
company as Additional Insureds are also an in-
apply to Medical Expenses Coverage.
sured, but only with respect to liability arising
out of your ongoing operations for that insured.
b. After a loss you may waive your rights
against another party in writing, only if,
B. Primary Coverage
at the time of the loss, that party is
..one of the following:
With respect to claims arising out of the opera-
Lions of the Named Insured, such insurance as
A business firm:
afforded by this policy is primary and is not
additional to'or contributing with any other in-
1) Owned or controlled by you; or
surance carried by or for the benefit of the
above Additional Insureds.
2) That owns or controls you.
C. Waiver of Subrogation D. Notice of Cancellation
Paragraph 2., of the TRANSFER OF RIGHTS 1.
If we cancel this policy for any reason
OF RECOVERY AGAINST OTHERS TO US
other than nonpayment of premium, we
condition, of the Businessowners Common
will mail written notice at least 30 days
Policy Conditions,BP 71 10, is deleted and
before the effective date of cancellation to
replaced by the following:
the Additional Insureds in paragraph A.
above.
2. Applicable to Businessowners Liability
Coverage: 2.
If we cancel this policy for nonpayment of
premium, we will mail written notice at
a. If the insured has rights to recover all
least 10 days before the effective date of
or part of any payment we have made
cancellation to the Additional Insureds in
under this policy, those rights are
paragraph A. above.
transferred to us. This insurance shall
not be invalidated should the Named
Insured waive in writing; prior to a
THIS ENDORSEMENT MUST BE ATTACHED TO A CHANGE ENDORSEMENT WHEN ISSUED AFTER THE POLICY
IS WRITTEN.
BP 86 62 (Ed. 09 96)
Printed in U.S.A.
CALIFORNIA CHA`,.GES -- CANCELLATION A�EJ NONRENEWAL
THIS ENDORSEMENT CHANGES THE POLICY." PLEASE READ IT CAREFULLY.
This endorsement modifies insurance provided under the following:
BOILER AND MACHINERY COVERAGE PART
BUSINESSOWNERS POLICY
COMMERCIAL AUTO COVERAGE PART
COMMERCIAL CATASTROPHE COVERAGE PART
COMMERCIAL CRIME COVERAGE PART*
COMMERCIAL GENERAL LIABILITY COVERAGE PART
COMMERCIAL INLAND MARINE COVERAGE PART
COMMERCIAL PROPERTY COVERAGE PART
ELECTRONICS ERRORS AND OMISSIONS LIABILITY COVERAGE PART
FARM COVERAGE PART
LIQUOR LIABILITY COVERAGE PART
POLLUTION LIABILITY COVERAGE PART
PRODUCTS/COMPLETED OPERATIONS LIABILITY COVERAGE
PART
PRODUCTS RECALL COVERAGE PART
*This endorsement does not apply to coverage provided for employee
dishonesty (Coverage Form A), for-
gery or alteration (Coverage Form B), or public employee dishonesty (Coverage Forms O and P).'
A. Paragraphs 2. and 3. of the Cancellation Corn-
b. 30 days before the effective date of
moil Policy Condition are replaced by the fol-
cancellation if we cancel for any other
lowing:
reason.
2. All Policies In Effect For 60 Days or 3.
All Policies In Effect For More Than 60
Less:•
Days
If this policy has been in effect for 60 days
a. If this policy has been - in effect for
or less, and is not a renewal of a policy we
more than 60 days, or is a renewal of
have previously issued, we may cancel this
a policy we issued, we may cancel this
policy by mailing or delivering to the first
policy only upon the occurrence, after
Named Insured at the .mailing ' address
the effective date of the policy, of one
shown in the policy and to the producer of
or more of the following:
record, advance written notice of cancel-
lation, stating the reason for cancellation, at
1) Nonpayment of premium, includ-
least:
ing payment due on a prior policy
we issued and due during the cur -
a. 10 days before the effective date of
rent policy term covering the
cancellation if we cancel for:
same risks.
1) Nonpayment of premium; or
2) Discovery of fraud or material mis-
representation by:
2) Discovery of fraud or material mis-
representation by:
a) Any insured or his or her rep-
resentative in obtaining this in -
a) Any insured or his or her rep-
surance; or
resentative in obtaining this in-
b) You or your representative in
surance; or
pursuing a claim under this
policy. "
b) You or your representative in
pursuing a claim under this
3) A judgment by a court or an ad -
policy.
ministrative`tribunal that you have
`violated a California or Federal
IL 70 25 (Ed. 08 97), Page 1 of 4
Printed in U.S.A.
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 neg-
ligent acts or omissions, or of any
violations of state laws or regula-
tions establishing safety standards,
by you or your representative,
which materially increase any of
the risks insured against.
5) Failure by you or your representa-
tive to implement reasonable loss`
control requirements, agreed to by
you as a condition of policy issu-
ance, or which were conditions
precedent to our use of a particu-
lar rate or rating plan, if that fail-
ure materially increases any of the
risks insured against.
6) A determination by the Commis-
sioner 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 sol-
vency; 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.
7) A change by you or your repre-
sentative in the activities or prop-
erty of the commercial or indus-
trial enterprise, which results in a
materially added, increased - or
changed risk, unless the added,
increased or changed risk is in-
cluded in the policy.
b. We will mail or deliver advance writ-
ten notice of cancellation, stating the
reason for cancellation; to the first
Named Insured, at the mailing address
shown in the policy, and to the pro-
ducer of record, at least:
1) 10 days before the effective date
of cancellation if we cancel for a
C
reason listed in paragraph 3.a. 1)
or 3.a. 2); or
2) 30 days before the effective date
of cancellation if we cancel for
any other reason listed in para-
graph 3.a.
B. The following provision is added to the Cancel-
lation Common Policy Condition:
7. Residential Property
This provision applies to coverage on real
property which is used predominantly for
residential purposes and consisting of not
more than four dwelling units, and to cov-
erage on tenants' household personal
property in a residential unit, if such cov-
erage is written under one of the following:
Businessowners Policy
Commercial Property Coverage Part;
Farm Coverage Part -- Farm Property Cov-
erage Form
a. if such coverage has been in effect for
60 days or less, and is not a renewal
of coverage we previously issued, we
may cancel this coverage for any rea-
son, except as provided in b, and c.
below.
b. We may not cancel this policy solely
because the first Named Insured has:
1) Accepted an offer of earthquake
coverage; or
2) Cancelled or did not renew a
policy issued by the California
Earthquake Authority (CEA) that
included an earthquake policy
premium surcharge.
However, we shall cancel this policy if
the first Named Insured has accepted
a new or renewal policy issued by the
CEA that includes an earthquake pol-
icy premium surcharge but fails to pay
the earthquake policy premium sur-
charge authorized by CEA.
IL 70 25 (Ed. 08 97) Page 2 of 4 Printed in U.S.A.
c. We may hu, cancel such coverage a. may elect not to renew such cov-
solely because corrosive soil erage for any reason, except as pro -
conditions exist on the premises. vided in b., c. and d. below.
This restriction (c.) applies only if
coverage is subject to one of the b. We will not refuse to renew such cov-
following, which exclude loss or erage solely because the first Named
damage caused by or resulting Insured has accepted an offer of
from corrosive soil conditions: earthquake coverage. However, the
1) Businessowners Policy Busi-
nessowners Special Property
Coverage Form;
2) Commercial Property Cover-
age Part -- Causes Of Loss --
Special Form; or
3) Farm Coverage Part - Farm
Property Coverage Form;
Covered Causes of Loss --
Special
C. The following is added and supersedes any
provisions to the contrary:
NONRENEWAC
1. Subject to the provisions of paragraphs
C.2. and C.3. below, if we elect not to re-
new this policy, we will mail or deliver
written notice stating the reason for nonre-
newal to the first Named Insured shown in
the Declarations and to the producer of
record, at least 60 days, but no more than
120 days, before the expiration or anniver-
sary date:
We will mail or deliver our ` notice to the
first Named Insured, and to the producer
of record, at the mailing address shown in
the policy.
2. Residential Property
This provision applies to coverage on real
property used predominantly for residential
purposes and consisting of not more than
four dwelling units, and to coverage on
tenants' household property contained in a
residential unit; if such coverage is written
under one of the following:
Businessowners Policy
Commercial Property Coverage Part
Farm Coverage Part- Faun Property Cov-
erage Form
IL 70 25 (Ed. 08 97) ,
Page 3 of 4
following applies only to insurers who
are associate participating insurers as
established by Cal. Ins. Code Section
10089.16. We may elect not to renew
such coverage after the first Named
Insured has accepted an offer of
earthquake coverage, if one or more
of the following reasons applies:
1) The nonrenewal is based on
sound underwriting principles that
relate to the coverages provided
by this policy and that are consis-
tent with the approved rating plan
and related documents filed with
the Department of Insurance as
required by existing law;
2) The Commissioner of Insurance
finds that the exposure to poten-
tial dosses will threaten our sol-
vency or place us in a hazardous
condition. A hazardous condition
includes, but is not limited to, a
condition in which wemake
claims payments for losses result-
ing from an earthquake that oc-
curred within the preceding two
years and that required a reduc-
tion in policyholder surplus of at
least 25% for payment of those
claims; or
3) We have:
a) Lost or experienced a sub-
stantial reduction in the avail-
ability or scope of reinsurance
coverage; or
_b) Experienced a substantial in-
crease in the premium
charged for reinsurance cov-
erage of our- residential prop-
erty insurance policies; and
The Commissioner has ap-
proved a plan for the nonce-
newals that is fair and equi-
table, and that is responsive to
the changes in our reinsur-
ance position.
Printed in U.S.A.
c. We will not refuse to renew such cov- 3.
We are not \required to send notice of
erage solely because the first Named
nonrenewal in the following situations:
Insured has cancelled or did not re-
new a policy, issued by the California
a. If the transfer or renewal of a policy,
Earthquake Authority that included an
without any changes in terms; condi-
earthquake policy premium sur-
tions, or rates, is between us and a
charge,
memeber of our insurance group.
d. We will not refuse to renew such cov-
b. If the policy has been extended for 90
erage solely because corrosive soil
days or less, provided that notice has
conditions exist on the premises. This
been given, in accordance with para-
restriction (d.) applies only if coverage
graph C.1.
is subject to one of the following,
which exclude loss or damage caused
c. If you have obtained replacement
by or resulting from corrosive soil
coverage, or if the first Named Insured
conditions:
has agreed, in writing, within 60 days
-
of the termination of the policy, to
1) Businessowners Policy -- Business-
obtain that coverage,
owners Special Property Coverage
Form;
d. If the policy is for a period of no more
than 60 days and you are notified at
2) Commercial Property Coverage
the time of issuance that it will not be
Part -- Causes Of Loss -- Special
renewed.
- Form; or
e. If the first Named Insured requests a
3) Farm Coverage Part -- Farm Prop-
change in the terms or conditions or
erty Coverage Form; Covered
risks covered by the policy within 60
Causes Of Loss -- Special
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 Para-
graph CA., to renew the policy under
changed terms or conditions or at an
increased premium rate, when the in-
crease exceeds 25%.
THIS ENDORSEMENT MUST BE ATTACHED TO A CHANGE ENDORSEMENT WHEN ISSUED AFTER THE POLICY
IS WRITTEN.
Includes copyrighted material of the insurance Services Office with its permission.
IL 70 25 (Ed. 09 97) Page 4 of 4
Printed in U.S.A.
CALIFORNIA CHA .GES -- CANCELLATION Ah.j NONRENEWAL
- THIS ENDORSEMENT CHANGES THE POLICY.
PLEASE READ IT CAREFULLY.
This, endorsement modifies insurance provided under the following:
BOILER AND MACHINERY COVERAGE PART
BUSINESSOWNERS POLICY
COMMERCIAL AUTO COVERAGE PART
COMMERCIAL CATASTROPHE COVERAGE PART
COMMERCIAL CRIME COVERAGE PART*
COMMERCIAL GENERAL LIABILITY COVERAGE PART
COMMERCIAL INLAND MARINE COVERAGE PART
COMMERCIAL PROPERTY COVERAGE PART
ELECTRONICS ERRORS AND OMISSIONS LIABILITY COVERAGE PART
FARM COVERAGE PART
LIQUOR LIABILITY COVERAGE PART
POLLUTION LIABILITY COVERAGE PART
PRODUCTS/COMPLETED OPERATIONS LIABILITY COVERAGE PART
PRODUCTS RECALL COVERAGE PART
*This endorsement does not apply to coverage provided for
employee dishonesty (Coverage Form A), for-
gery or alteration (Coverage Form B), or public employee dishonesty (Coverage Forms O and P).
A. Paragraphs 2. and 3. of the Cancellation Corn-
b. 30 days before the effective date of
moil Policy Condition are replaced by the fol-
cancellation if we cancel for any other
lowing:
reason.
2. All Policies In Effect For 60 Days or 3.
All Policies In Effect For More Than 60
Less:•
Days
If this policy has been in effect for 60 days
a. If this policy has been in effect for
or less, and is not a renewal of a policy we
more than 60 days, or is a renewal of
have previously issued, we may cancel this
a policy we issued, we may cancel this
policy by mailing or delivering to the first
policy only upon the occurrence, after
Named Insured at the mailing address
the effective date of the policy, of one
shown in the policy and to the producer of
or more of the following:
record, advance written notice of -cancel-
lation, stating the reason for cancellation, at
1) Nonpayment of premium, includ-
least:
ing payment due on a prior policy
we issued and due during the cur -
a. 10 days before the effective date of
rent policy term covering the
cancellation if we cancel for:
same risks.
1) Nonpayment of premium; or -
2) Discovery of fraud or material mis-
representation by:
2) Discovery of fraud or material mis-
representation by:
a) Any insured or his or her rep-
resentative in obtaining this in -
a) Any insured or his or her rep-
surance; or
resentative in obtaining this in-
b) You or your representative in
surance; or
pursuing a claim under this
policy.
b) You or your representative in
pursuing a claim under this
3) A judgment by a court or an ad -
policy.
ministrative tribunal that you have
violated a California or federal
IL 70 25 (Ed. 08 97) Page 1 of 4
Printed in U.S.A.
r'
law, having as one of its necessary
reason listed in paragraph 3.a. 1)
elements an act which materially
or 3.a. 2); or
increases any of the risks insured
against.
2) 30 days before the effective date
of cancellation if we cancel for
4) Discovery of willful or grossly neg-
any other reason listed in para-
ligent acts or omissions, or of any
graph 3.a.
violations of state laws or regula-
tions establishing safety standards, B.
The following provision is added to the Cancel -
by you or your representative,
lation Common Policy Condition:
which materially increase any of
the risks insured against.
7. Residential Property
5) Failure by you or your representa-
This provision applies to coverage on real
Live to implement reasonable loss
property which is used predominantly for
control requirements, agreed to by
residential purposes and consisting of not
you as a condition of policy issu-
more than four dwelling units, and to cov-
ance, or which were conditions
erage on tenants' household personal
precedent to our use of a particu-
property in a residential unit, if such cov-
lar rate or rating plan, if that fail-
erage is written under one of the following:
ure materially increases any of the
risks insured against.
Businessowners Policy
6) A determination by the Commis-
Commercial Property Coverage Part
sioner of Insurance that the:
Farm Coverage Part -- Farm Property Cov-
a) Loss of, or changes in, our
erage Form
reinsurance covering all or
part of the risk would threaten
a. If such coverage has been in effect for
our financial integrity or Sol-
60 days or less, and is not a renewal
vency; or
of coverage we previously issued
e P g y we
may cancel this coverage for any rea-
b) Continuation of the policy
son, except as provided in b. and c.
coverage would:
below.
i) Place us in violation of
b. We may not cancel this policy solely
California law or the laws
because the first Named Insured has:
of the state where we are
domiciled; or
1) Accepted an offer of earthquake
coverage; or
ii) Threaten our solvency.
2) Cancelled or did not renew a
7) A change by you or your repre-
policy issued by the California
sentative in the activities or prop-
Earthquake Authority (CEA) that
erty of the commercial or indus-
included an earthquake policy
trial enterprise, which results in a
premium surcharge.
materially added, increased or
changed risk, unless the added,
However, we shall .cancel this policy if
increased or changed risk is in-
the first Named Insured has accepted
eluded in the policy.
anew or renewal policy issued by the
CEA that includes an earthquake pol-
b. We will mail or deliver advance writ-
icy premium surcharge but fails to pay
ten notice of cancellation, stating the
the earthquake policy premium sur-
reason for cancellation, to the first
charge authorized by CEA.
Named Insured, at the mailing address
shown in the policy, and to the pro-
ducer of record, at least:
1) 10 days before the effective date
of cancellation if we cancel for a
IL 70 25 (Ed. 08 97) Page 2 of 4
Printed in U.S.A.
C. We may ri�� cancel such coverage
a. may elect not to renew such cov-
solely because corrosive soil
erage for any reason, except as pro -
conditions exist on the premises.
vided in b., c. and d. below.
This restriction (c.) applies only if
coverage is subject to one of the
b• We will not refuse to. renew such cov-
following, which exclude loss or
erage solely because the first Named
damage caused by or resulting
Insured has accepted an offer of
from corrosive soil conditions:
earthquake coverage. However, the
following applies only to insurers who
1) Businessowners Policy- -- Busi-
are associate participating insurers as "
nessowners- Special Property
established by Cal. Ins. Code Section
Coverage Form;
10089.16. We may elect not to renew
such coverage after the first Named
2) Commercial Property Cover-
Insured has accepted an offer of
age Part -- Causes Of Loss --
earthquake coverage, if one or more
Special Form; or
of the following reasons applies;
3) Farm Coverage Part -- Farm
1) The nonrenewal is based on
Property Coverage Form;
sound underwriting principles that
Covered Causes of Loss --
relate to the coverages provided
Special.
by this policy and that are consis-
C. The followingis added and supersedes an
p y
tent with the approved rating plan
and related documents filed with
provisions to the contrary:
the Department of Insurance as
NONRENEWAL
required by existing law;
1. Subject to the provisions of paragraphs
2) The Commissioner of Insurance
finds that the exposure to poten-
C.2. and C.3. below, if we elect not to re-
tial losses threaten our sol-
new this policy, we will mail or deliver
written notice stating the reason for nonre-
will
vency or place us in a hazardous
newal to the first Named Insured shown in
condition. A hazardous condition -
the Declarations and to the producer of
includes, but is not limited to, a
record, at least 60 days, but no more than
condition in which we make
120 days, before the expiration or anniver-
claims payments for losses result-
sary date.
ing :from an .earthquake that oc-
curred within the preceding two
We will mail' or deliver our notice to the
years and that required a reduc-
first Named Insured, and to the producer
tion in policyholder surplus of at
of record, at the mailing address shown in
least 2S% for payment of those
the policy.
claims; or
2. Residential 'Property
3) We have:
This provision applies to coverage on real
a) Lost or experienced a sub -
property used predominantly for residential
ability or scope reinsurance
purposes and consisting of not more than
four dwelling units, and to coverage on
coverage; or
tenants' household property contained in a
b) Experienced a substantial in -
residential unit, if such coverage is written
crease in the premium
under one of the following:
charged for reinsurance cov-
Businessowners'Polic
erage of our residential prop-
erty insurance policies; and
Commercial Property Coverage Part
The Commissioner has ap-
farm`Coverage Part -- Farm Property Cov-
proved a plan for the nonre-
newals that is fair and
erage Form
equi-
table, and that is responsive to
the changes in our reinsur-
ance position.
IL 70 25 (Ed. 08 97) Page 3 of 4
Printed in U.S.A.
c. We will not refuse to renew such cov- 3.
We are not required to send notice of
erage solely because the first Named
nonrenewal in the following situations:
Insured has cancelled or did not re-
new a policy, issued by the California
a. If the transfer or renewal of a policy,
Earthquake Authority that included an
without any changes in terms, condi-
earthquake policy premium sur-
tions, or rates, is between us and a
charge.
memeber of our insurance group.
d. We will not refuse to renew such cov-
b. If the policy has been extended for 90
erage solely because _corrosive soil
days or less, provided that notice has
conditions exist on the premises. This
been given in accordance with para-
restriction (d.) applies only if coverage
graph C.1.
is subject to one of the following,
which_ exclude loss or damage caused
c. If you have obtained replacement
by or resulting from corrosive soil
coverage, or if the first Named Insured
conditions:
has agreed, in writing, within 60 days
of the termination of the policy, to
1) Businessowners Policy -- Business-
obtain that coverage.
owners Special Property Coverage
Form;
d. If the policy is for a period of no more
than 60 days and you are notified at
2) Commercial Property Coverage
the time of issuance that it will not be
Part -- Causes Of Loss -- Special
renewed.
Form; or
e. If the first Named Insured requests a
3) Farm Coverage Part -- Farm Prop-
change in the terms or conditions or
erty Coverage form; Covered
risks covered by the policy within 60
Causes Of Loss -- Special.
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 para-
graph CA., to renew the policy under
changed terms or conditions or at an
increased premium rate, when the in-
crease exceeds 25%.
THIS ENDORSEMENT MUST BE ATTACHED TO A CHANGE ENDORSEMENT WHEN ISSUED AFTER THE POLICY
IS WRITTEN,
Includes copyrighted material of the Insurance Services Office with its permission.
IL 70 25 (Ed. 08 97) Page 4 of 4
Printed in U.S.A.
EXCLUSION OF CERTAIN COMPUTER -RELATED LOSSES
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
This endorsement modifies insurance provided under the following:
BLISINESSOWNERS STANDARD AND SPECIAL PROPERTY COVERAGE FORMS
This is including any attached endorsement that may provide specialized coverage on computers.
The following exclusion is added to paragraph B.,
Exclusions in the Businessowners Standard and
Special Property Coverage Forms.
1. We will not pay for loss or damage, caused by
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 or damage.
a. The failure, malfunction or inadequacy of:
1) Any of the foQowing, whether belong-
ing to any insured or to others:
a) Computer hardware, including mi-
croprocessors or other Electronic b.
Data Processing Equipment as may
be described elsewhere in this
policy,
b) Computer application software or
other Electronic media and Rec-
ords as may be described
elsewhere in this policy, 2.
c) Computer operating systems and
related software;
d) Computer networks,
e) Microprocessors (computer chips)
not part of any computer system; 3.
or
fl Any other computerized or elec-
tronic equipment or compor?ents;
or
2) Any other products, and any services,
data or functions that directly or indi-
rectly use or rely upon, in any manner,
any of the items listed in paragraph 1.
a. 1) of this endorsement;
due to the inability to correctly recognize,
distinguish, interpret or accept one or
more dates or times. An example is the in-
ability of computer software to recognize
the year 2000.
Any advice, consultation, design, evalua-
tion, inspection, installation, maintenance,
repair, replacement or supervision provided
or done by you or for you to determine,
rectify or test for, any potential or actual
problems described in paragraph 1. a. of
this endorsement.
If excluded loss or damage, as described in
paragraph 1. a. of this endorsement results in a
Covered Cause of Loss under the Businessown-
ers Standard Property Coverage Form or the
Businessowners Special Property Coverage
Form, we will pay only for the loss or damage
caused by such Covered Cause of Loss.
We will not pay for repair, replacement or
modification of any items in 1. a. 1) or 1. a. 2)
of this endorsement to correct any deficiencies
or change any features.
THIS ENDORSEMENT MUST BE ATTACHED TO A CHANGE ENDORSEMENT WHEN ISSUED AFTER THE POLICY
IS WRITTEN.
Copyright, Insurance Services Office, Inc., 1998
BP 73 34 (Ed. 04 98) Printed in US.A.
q
ALL PURPOSE ACKNOWLEDGEMENT
State of California
County of Nevada
On March 31, 1999 before me, Joanna E. Weise, notary, personally appeared
Danielle Rubino personally known to me to be the person whose name is
subscribed to the within instrument and acknowledged to me that he/she
executed the same in his/her authorized capacity, and that by his/her signature
on the instrument the person, or the entity upon behalf of which the person
acted, executed the instrument.
WITNESS my hand and official seal.
(JOANNA E. WEISE 3
Signature of Notary COMM. # 1179309
NOTARY PUBLIC-CALIFORNIA Q
NEVAOA COUNTY 0
COMM. EXP. MAY 8, 2002 -
Gil
LUMBERMENS MUTUAL CASUALTY COMPANY (LMC)
AMERICAN MOTORISTS INSURANCE COMPANY (AMICO) MEMPER.
AMERICAN MANUFACTURERS MUTUAL INSURANCE COMPANY (AMM)
AMERICAN PROTECTION INSURANCE COMPANY (AMPICO)
The Kemper Package NAME CODE MONT
(A Combination Policy) DIRECT BILL
COMMON POLICY DECLARATIONS CUSTOMER NUMBER
7JW 305 968-00
1. NAMED INSURED AND MAILING ADDRESS:
MONTANA TESTING & GEOTECHNICAL INC
2992 E LA PALMA AVE STE 9
ANAHEIM CA 92806
2. THE NAMED INSURED IS: CORPORATION
3. POLICY PERIOD: FROM 02/11/99 TO 02/11/00
12:01 A.M. Standard Time at your mailing address above.
4. ` IN RETURN FOR THE PAYMENT OF THE PREMIUM, AND SUBJECT TO ALL THE TERMS OF THIS POLICY,
WE AGREE WITH YOU TO PROVIDE THE INSURANCE AS STATED IN THIS POLICY.
5. We afford insurance for only those coverage parts listed below and only in the amounts and to the extent set forth
in each Coverage Part. The company listed before the Coverage Part will be the insurer of that Coverage Part
and no other.
COMPANY COVERAGE PARTS POLICY NUMBERS
AMICO COMMERCIAL CATASTROPHE 7JW 305 968-00
6. FORMS AND ENDORSEMENTS APPLICABLE TO ALL COVERAGE PARTS:
IL7900 (ED. 07-87) THE KEMPER PACKAGE POLICY JACKET
IL7025 (ED. 08-97) CALIFORNIA CHANGES - CANCELLATION
AND NONRENEWAL
7. ESTIMATED PREMIUM FOR ALL COVERAGE PARTS: $ 667.00
Ibl<-, rb a �YLU W bPy--&QW/U&*-e
TOTAL AMOUNT DUE AT INCEPTION: $ 667.00
PRODUCER INFORMATION:
NETWORKED INS AGENTS. COUNTERSIGNATURE:
988 MCCOURTNEY RD STE B
GRASS VALLEY CA 95949
52-2606 916-274-3102 Date:
IL 79 01 (Ed. 09 86) Page 1 of 1 Printed in
BUAGT-PY
LUMBERMENS MUTUAL CASUALTY COMPANY (LMC)
Y AMERICAN MOTORISTS INSURANCE COMPANY (AMICO) 1�PMPIER®
AMERICAN MANUFACTURERS MUTUAL INSURANCE COMPANY (AMM)
AMERICAN PROTECTION INSURANCE COMPANY (AMPICO)
The company providing the insurance afforded by this policy is that indicated above.
COMMERCIAL CATASTROPHE LIABILITY COVERAGE PART DECLARATIONS
1. NAMED INSURED: POLICY NUMBER: 7JW 305 968-00
MONTANA TESTING & GEOTECHNICAL INC
2. THE NAMED INSURED IS: CORPORATION
3. POLICY PERIOD: FROM 02/11/99 TO 02/11/00
12:01 A.M. Standard Time at your mailing address.
PRIOR POLICY NO. NEW
4. LIMITS OF INSURANCE:
EACH OCCURRENCE $ 2,000,000
GENERAL AGGREGATE $ 2,000,000
PRODUCTS -COMPLETED
OPERATIONS AGGREGATE $ 2,000,000
RETAINED LIMIT $ 0
S. FORMS AND ENDORSEMENTS APPLICABLE TO THIS COVERAGE PART:
CC7202 (ED. 08-94) COMMERCIAL CATASTROPHE LIABILITY COVERAGE FORM
SCHEDULE
CC7000 (ED. 08-94) COMMERCIAL CATASTROPHE LIABILITY COVERAGE FORM
CC7545 (ED. 08-94) EXCLUSION - EMPLOYERS LIABILITY
CC7618 (ED. 12-96) CHANGES TO PERSONAL AND ADVERTISING INJURY
LIABILITY - COVERAGE B
6. TOTAL COVERAGE PART PREMIUM: $ 667.00
CC 72 05 (Ed. 08 94) Page 1 of 1 Printed in U.S.A.
COMMERCIAL CATASTROPHE LIABILITY
COVERAGE FORM SCHEDULE
MEMPER.
POLICY NUMBER 7JW305968-00
SCHEDULE OF UNDERLYING INSURANCE
TYPE OF POLICY
APPLICABLE LIMITS
BUSINESSOWNERS SPECIAL POLICY:
Business Liability Limit
$
1,000,000
any one
occurrence
Medical Expense Limit:
$
10,000
per person
Products -Completed Operations Aggregate
$
2,000,000
Aggregate Limit (Other Than Products-
$
2,000,000
Completed Operations Aggregate)
Fire Legal Liability Limit
$
100,000
any one fire
or explosion
Hired & Non -Owned Auto
Included
Insurer: AMERICAN MOTORISTS INSURANCE COMPANY
Policy Number: 7JW305968-00 Policy
Term:
From 02/11/99 To 02/11/00
CC 72 02 (Ed. 08 94) Page 1 of 1
Printed in U.S.A.
COMMERCIAL CATASTROPHE
LIABILITY COVERAGE FORM MEMPER.
TABLE OF CONTENTS
This Table of Contents is only intended as a guide to assist reference to the various insurance provisions of
the Commercial Catastrophe Liability Coverage Form; in order of their appearance. Please refer to the
Declarations for this Coverage Part and the Commercial Catastrophe Liability Coverage form for complete
coverage details.
SECTION I -- COVERAGES Page No.
Coverage A -- Excess Liability Over Underlying Insurance --
Insuring Agreement .................................... .................... ......... .............. 1
Coverage B - Excess Liability Over Retained Limit --
InsuringAgreement..................................................................................... 1
Supplementary Payments ................ .................... .................. ......... 2
Exclusions
1. With Respect to Coverage A and Coverage B.................................................. 2
2. With Respect to Coverage A Only....................................................................... 3
3. With Respect to Coverage B Only......................................................................... 5
SECTION 11 -- WHEN THIS INSURANCE APPLIES......................................................... 8
SECTION III -- WHO IS AN INSURED.............................................................................. 9
SECTION IV -- LIMITS OF INSURANCE............................................................................11
SECTION V -- COMMERCIAL CATASTROPHE LIABILITY CONDITIONS ..................11
SECTION VI -- DEFINITIONS..............................................................................................14
CC 70 00 (Ed. 08 94)
Contents Printed in U.S.A.
COMMERCIAL CATASTROPHE
LIABILITY COVERAGE FORM
MEMPIER.
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 III -- WHO IS AN
INSURED.
Other words and phrases that appear in quotation
marks have special meaning. Refer to SECTION VI --
DEFINITIONS.
SECTION I -- COVERAGES
"property damage," "personal injury" and
"advertising injury" described in SECTION II --
- COVERAGE A -- "EXCESS LIABILITY OVER UN-
WHEN THIS INSURANCE APPLIES;,
DERLYING INSURANCE -- INSURING AGREE-
MENT
3. We may, at our discretion, investigate any
"occurrence" or offense and settle any claim or
We will pay those surns that the insured becomes
"suit" that may result;
legally obligated to pay as damages that would
have been payable under the terms of the
4. If for any reason we are prevented from per -
"underlying insurance" because of "bodily injury,"
forming our duty to defend the insured against
"property damage," "personal injury" or "advertising
any "suit," we will reimburse the insured for any
injury," as if the limit of this insurance shown in the
expense incurred at our request or with our
Declarationshad been added to the applicable
written consent;
limit of insurance under the "underlying insurance."
5. Our duty to defend or reimburse the insured
We will also pay those sums that the insured be-
ends when we have used up the limit of insur-
comes legally obligated to pay as damages that
ance available under this Coverage Part in the
would have been payable under the terms and
payment of judgments or settlements under
conditions of the underlying Employee Benefit Li-
Coverages and B combined; and
ability Coverage, if provided by "underlying insur-
ance," as if the limit of this insurance shown in the
6. We will have no duty to defend the insured
Declarations had been added to the limit of insur-
against any "suit" seeking damages to which this
ance under the underlying Employee Benefit Liabil-
insurance does not apply.
ity Coverage.
COVERAGE B -- EXCESS LIABILITY OVER
We will pay only the arnount in excess of the sums
RETAINED LIMIT -- INSURING AGREEMENT
actually payable under the terms of the "underlying
insurance." No other obligation or liability to pay
1. We will pay those sums that the insured be -
sums or perform acts or services is covered unless
comes legally obligated to pay as damages, be -
explicitly provided for under Supplementary Pay-
cause of "bodily injury," "property damage,"
ments. In the event the duty of the underlying in-
"personal injury" or "advertising injury" to which
surer to defend the insured against a "suit" ceases
this insurance applies, but only if "underlying
solely because the applicable limit of insurance is
insurance" does not apply.
used up in the payment of judgments or settle-
ments, then we shall assume the duty for such
We will pay only the amount in excess of
defense. But:
"Retained Limit." No other obligation or liability
to pay sums or perform acts or services is cov-
1. The amount we will pay is limited as described
ered unless explicitly provided for under Sup -
in SECTION IV-,-TIMITS OF INSURANCE;
plementary Payments. With respect to "bodily
injury," "property damage," "personal injury" or
2. This insurance only applies to "bodily injury,"
"advertising injury" for which there is no other
CC 70 00 (Ed. 08 94) Page
1 of 17 Printed in U.S.A.
insurance in any way applicable, we will have
b) In the course of advertising your goods,
the right and duty to defend the insured
products or services.
against any "suit" seeking damages. But:
SUPPLEMENTARY PAYMENTS
a) The amount we will pay is limited as de-
scribed in SECTION IV -- LIMITS OF IN-
We will pay with respect to any claim we investi-
SURANCE;
gate or settle, or any "suit" against an insured we
defend:
b) This -insurance applies only to "bodily in-
jury," "property damage," "personal injury"
1. All expenses we incur.
and "advertising injury" described in SEC-
TION II -- WHEN THIS INSURANCE AP-
2. The cost of bonds to release attachments, but
PLIES;
only for bond amounts within the limit of insur-
ance. We do not have to furnish these bonds.
c) We may, at our discretion, investigate any
"occurrence" or offense and settle any
3. All reasonable expenses incurred by the in -
claim or "suit" that may result;
sured at our request to assist us in the
investigation or defense of any claim or "suit,"
d) If for any reason we are prevented from
including actual loss of earnings up to $250 a
performing our duty to defend the insured
day because of time off from work.
against any "suit," we will reimburse the in-
sured for any expense incurred at our re-
4. All costs taxed against the insured in the "suit."
quest or with our written consent;
5. Prejudgment interest awarded against the
e) Our right and duty to defend end when
insured on that part of the judgment we pay. If
we have used up the limit of insurance
we make an offer to pay the applicable limit of
available under this Coverage Part in the
insurance, we will not pay any prejudgment
payment of judgments or settlements un-
interest based on that period of time after the
der Coverages A and B combined; and
offer.
f) We will have no duty to defend the in-
6. All interest on the full amount of any judgment
sured against any "suit" seeking damages to
that accrues after entry of the judgment and
which this insurance does not apply.
before we have paid, offered to pay, or depos-
ited in court the part of the judgment that is
2. The "bodily injury" or "property damage" must
within the applicable limit of insurance.
be caused by an "occurrence." The
"occurrence" may take place anywhere in the
These payments will not reduce the limits of insur-
world.
ance.
3. Damages because of "bodily .injury" include
EXCLUSIONS
damages claimed by any person or organiza-
tion for care, loss of services or deathresulting
1. With respect to Coverage A and Coverage B,
at any time from the "bodily injury."
this insurance does not apply to:
4. " This insurance applies to "personal injury" only
a. Auto first Party Coverage
if caused by an offense:
Any obligation imposed on the insured un-
a) Committed anywhere in the world; and
der any uninsured motorist, underinsured
motorist, automobile no-fault law, or any
b) Arising out of the conduct of your business,
similar law.
excluding advertising, publishing, broad-
casting or telecasting done by or for you.
b. Statutory Obligations to Employees
5. This insurance applies to "advertising injury"
Any obligation imposed on the insured un-
only if caused by an offense committed:
der any workers compensation, occupa-
tional disease, disability benefits, unem-
a) Anywhere in the world; and
ployment compensation, or any similar law.
CC 70 00 (Ed. 08 94) Page 2 of 17 Printed in U.S.A.
c. Damage to Property
2) "Your work'; or
"Property damage" to
3) "Impaired property,"
1) Property you own, rent or occupy;
if such product, work or property is with-
drawn or recalled from the market or from
2) Property you transport;
use by any person or organization because
of a known or suspected defect, defi-
3) Premises you sell, give away or aban-
ciency, inadequacy or dangerous condition
don, if the "property damage" arises
in it.
out of any part of those premises;
e. Asbestos
4) Property loaned to you;
"Bodily injury" or "property damage' of any
5) Personal property in the care, custody
nature whatsoever, caused by, arising out
or control of the insured,
of or relating in any way to asbestos or any
---
asbestos -containing product or material,_ or
6) That particular part of real property on
to the use, installation, removal, withdrawal
which you or any contractors or sub-
or disposal of any such product or mate -
contractors working directly or indi-
rial.
rectly on your behalf are performing
operations, if the "property <damage"
2. With respect to Coverage A only, this insur-
arises out of those operations; or
ance does not apply to:
7) That particular part of any property
a. Pollution (Auto)
that must be restored, repaired or re-
placed because"your work' was incor-
1) "Bodily injury" or "property damage"
rectly performed on it.
arising out of the actual, alleged or
threatened discharge, dispersal, seep -
Paragraph 3) of this ' exclusion does not
age, migration, release or escape of
apply if the premises are "your work" and
pollutants:
were never occupied, rented o- held for
rental by you.
a) That are, or that are contained in
any property that is:
Paragraphs 2), 4), 5), 6) and 7) of this ex-
clusion do not apply to liability assumed
i) Being transported or towed
under a sidetrack agreement.
by, handled, or handled for
movement into, onto or from
Paragraphs 4), 5) and 7) of this exclusion
an "auto';'
do not apply to "property damage" arising
out of the use of an elevator at premises
ii) Otherwise in the course of
you own, rent or occupy.
transit by or on behalf of the
insured; or
Paragraph 7) of this exclusion does not
apply to "property damage" included in the
iii) Being stored, disposed of,
"products -completed operations hazard."
treatedor processed in or
upon an "auto';
d. Recall of Products, Work or Impaired
Property
b) Before the pollutants or any prop-
erty in which the pollutants are
Damages claimed for any loss,- cost or ex-
contained are ` moved from the
pense incurred by you or others for the
place where they are accepted by
loss of use, withdrawal, recall, inspection,
the insured for movement into or
repair, ' replacement, adjustment, removal
onto an "auto'; or
or disposal of:
1) "Your product";
CC 70 00 (Ed. 08 94) Page 3
of 17 Printed in U.S.A.
c) After the pollutants or any prop-
Pollutants means any solid, liquid, gaseous
erty in which the pollutants are
or thermal irritant or contaminant,
contained are moved from an
including smoke, vapor, soot, fumes, acids,
"auto" to the place where they are
alkalis, chemicals and waste. Waste
finally delivered, disposed of or
includes materials to be recycled,
abandoned by the insured.
reconditioned or reclaimed.
Paragraph a) above does not apply to b.
Pollution (Other Than Auto)
fuels, lubricants, fluids, exhaust gases
or other similar pollutants that are
1) "Bodily injury" or "property damage"
needed for or result from the normal
arising out of the actual, alleged or
electrical, hydraulic or mechanical
threatened discharge, dispersal, seep -
functioning of an "auto" or its parts, if:
age, migration, release or escape of
pollutants:
i) The pollutants escape, seep, mi-
grate, or are discharged, dispersed .
a) At or from any premises, site or
or released directly from an "auto"
location which is or was at any
part designed by its manufacturer
time owned or occupied by, or
to hold, store, receive or dispose
rented or loaned to, any insured;
of such pollutants; and
b) At or from any premises, site or
ii) The "bodily injury" or "property
location which is or was at any
damage" does not arise out of the
time used by or for any insured or
operation of any equipment listed
others for the handling, storage,
in paragraphs e.1) and e.2) of the
disposal, processing or treatment
definition of "mobile equipment."
of waste;
Paragraphs b) and c) above of this ex-
c) Which are or were at any time
clusion do not apply to "occurrences"
transported, handled, stored,
away from premises owned by or
treated, disposed of, or processed
rented to an insured with respect to
as waste by or for any insured or
Pollutants not in or upon an "auto" if:
any person or organization for
whom you may be legally respon-
i) The pollutants or any property in
sible; or
which the pollutants are contained
are upset, overturned or damaged
d) At or from any premises, site or
as a result of the maintenance or
location on which any insured or
use of an "auto"; and
any contractors or subcontractors
working directly or indirectly on
ii) The discharge, dispersal, 'seepage,
any insured's behalf are perform -
migration, release or escape of the
ing operations:
pollutants is caused directly by.
such upset, overturn or damage.
i) If the pollutants are brought
on or to the premises, site or
2) Any cost or expense arising out of any
location in connection with
request, demand, order, claim or "suit"
such operations by such in -
by or on behalf of a governmental
sured, contractor or subcon-
authority demanding that the insured
tractor; or
or others test for, monitor, clean up,
remove, contain, treat, detoxify or
ii) If the operations are to test
neutralize, or in any way respond to,
for, monitor, clean up, re -
or assess the effects of pollutants.
move, contain, treat, detoxify
or neutralize, or in any way
Paragraph 2) above does not apply if there
respond to, or assess the ef-
is either "bodily injury" or "property dam-
fects of pollutants.
age" to which this insurance applies that is
caused by an "occurrence."
Subparagraphs a) and d) i) do not ap-
ply to "bodily injury" or "property dam -
CC 70 00 (Ed. 08 94) Page 4 of 17
Printed in U.S.A.
age" arising out of heat, smoke or
1) That the insured would have _ in the
fumes from a hostile fire. As used in
absence of the contract or agreement;
this exclusion, a hostile fire means one
or
which becomes uncontrollable or
breaks out from where it was intended
2) Assumed in a contract or agreement
to be.
that is an "insured contract," provided
the "bodily injury" or "property darn-
2) Any loss, cost or expense arising out of
age" occurs subsequent to the execu-
any:
tion of the contract or agreement.
Solely for the purposes of liability as -
a) Request, demand or order that
sumed in an "insured contract," rea-
any insured or others test for,
sonable attorney fees and necessary
monitor, clean up, remove, con-
litigation expenses incurred by or for a
tain, treat, detoxify or neutralize,
party other than an ' insured are
or in any way respond to, or as-
deemed to be part of Supplementary
sess the effects of pollutants; or
Payments because of "bodily injury" or
"property damage,"..provided:
b) Claim or "suit" by or on behalf of a
governmental "authority for dam-
a) Liability to such party for, or for
ages because of testing for, moni-
the cost of, that party's defense
toning, cleaning up, removing,
has also been assumed in the
containing, treating; detoxifying or
same "insured contract'; and
neutralizing, or in any way re-
sponding to, or assessing the ef-
b) Such attorney fees and litigation
fects of pollutants.
expenses are for defense of that
party against a civil or alternative
Pollutants means any solid, liquid, gaseous
dispute resolution proceeding in
or thermal irritant or contaminant, includ-
which damages to which this
ing smoke, vapor, soot, fumes, acids, alka-
insurance applies are alleged.
-- lis, chemicals and waste. Waste includes
materials to be recycled, reconditioned or c.
Contractual Liability -- Personal Injury
reclaimed.
or Advertising injury
3. ' With respect to Coverage B only, this
"Personal injury" or "advertising injury" for
insurance does not apply to:
which the insured is obligated to pay dam-
ages by reason of the assumption of liabil-
a. Expected or Intended Injury or Damage
ity in a contract or agreement. This exclu-
sion does not apply to liability for damages:
"Bodily injury" or "property damage"
expected or intended from the standpoint
1) That the insured would have in the
of the insured. This exclusion does not
'
absence of the contract or agreement;
apply to "bodily injury" or "property
or
damage" resulting "from the use of
reasonable force to protect persons or
2) Assumed in a contract or agreement
property.
that is an "insured contract," provided
the offense causing "personal injury" or
b. Contractual liability -- Bodily Injury or
"advertising injury" is committed sub -
Property Damage
Sequent to the execution ` of the con-
tract or agreement. Solely for the pur-
"Bodily injury," or ,"property damage" for
poses of " liability assumed in an
which the insured is obligated to pay
"insured contract," reasonable attorney
damages by reason of the assumption of
fees and necessary litigation expenses'
liability in a contract or agreement. This
incurred by or for a party other than
exclusion does not apply to liability for
an insured are deemed to be part of
damages:
Supplementary Payments because of
"personal' injury" or "advertising injury,"
provided:
CC 70 00 (Ed. 08 94) Page 5 of 17
Printed in U.S.A.
a) Liability to such party for, or for
quence of 1) above.
the cost of, that parry's defense
has also been assumed in the
This exclusion applies:
same "insured contract'; and
1) Whether the insuredmay be liable as
b) Such attorney fees and litigation
an employer or in any other capacity;
expenses are for defense of that
and
party against a .civil or alternative
dispute resolution proceeding in
2) To any obligation to share damages
which damages to which this
with or repay someone else who must
insurance applies are alleged.
pay damages because of the injury.
d. Liquor Liability
This exclusion does not apply to liability as-
sumed by the insured under an "insured
"Bodily injury" or "property damage" for
contract."
which any insured may be held liable by
reason of: f.
Employment -Related Practices
1) Causing or contributing to the intoxi-
"Bodily injury" or "personal injury" to:
cation of any person;
1) A person arising out of any:
2) The furnishing of alcoholic beverages
to a person under the legal drinking
a) Refusal to employ that person;
age or under the influence of alcohol;
or
b) Termination of that person's em-
ployment; or
3) ` Any statute, ordinance or regulation
relating to the sale, gift, distribution or
c) Employment - 'related practices,
use of alcoholic beverages.
policies, acts or omissions, such as
but not limited to coercion, criti-
This exclusion applies only if the insured:
cism, demotion, evaluation, reas-
signment, discipline, defamation,
1) Manufactures, sells or distributes alco-
harassment, humiliation or dis-
holic beverages;
crimination directed at that per-
son; or
2)_ Serves or furnishes alcoholic beverages
for a charge whether or not such ac-
2) The spouse, child, parent, brother or
tivity:
sister of that person as a consequence
of "bodily injury" or "personal injury" to
a) Requires a license; or
that person at whom any of the em-
ployment -related ,practices described
b) Is for the purpose of financial gain
in paragraphs 1) a), b), or c) above is
or livelihood; or
directed.
3) Serves or furnishes alcoholic beverages
This exclusion applies:
without a charge, if a license is re-
quired for such activity.
1) Whether the insured may be liable as
an employer or in any other capacity;
e. Employers Liability
and
"Bodily injury" to:
2) To any obligation to share damages
with or repay someone else who must
1) An "employee" of the insured arising
pay damages because of the injury.
out of and in the course of employ-
ment by the insured; or g.
Pollution
2) The spouse, child, parent; brother or
1) "Bodily - injury," "property damage,"
sister of that "employee" as a conse-
"personal injury" or "advertising injury"
CC 70 00 (Ed. 08 94) Page 6 of 17
Printed in U.S.A.
arising out of the actual, alleged or
2) Liability assumed under any "insured
threatened discharge, dispersal, seep-
contract" for the ownership, lnainte-
age, migration, release or escape of
nance or use of "aircraft" or watercraft.
Pollutants.
i.
Racing
2) Any loss, cost or expense arising out of
any:
"Bodily injury" or "property damage" arising
out of the use of "autos" or "mobile equip-
i) Request, demand or order that
ment" in, or while in practice or being
any insured or others test for,
prepared for, any professional or organized
monitor, clean up, remove, con-
racing or demolition contest or stunting ac-
tain, treat, detoxify or neutralize,
tivity.
or in any way respond to, or as-
- sess the effects of pollutants; or j.
War
ii) 'Claim or "suit" by or on behalf of a
"Bodily injury" or "property damage" due to
- --- governmental authority for dam-
war, whether or not declared, or any act
ages because of testing for, moni-
or condition incident to war. War includes
toring, cleaning up, removing
civil war, insurrection, rebellion or revolu-
containing, treating, detoxifying or
tion. This exclusion applies only to liability
neutralizing, or in any way re-
assumed under a contract or agreement.
sponding to, or assessing the ef-
fects of pollutants. k.
Damage to Your Product
Pollutants means any solid, liquid, gaseous
"Property damage" to "your product" arising
or thermal irritant or contaminant, includ-
out of it or any part of it.
ing smoke, vapor, soot, fumes, acids, alka-
lis, chemicals and waste. Waste includes I.
Damage to Your Work
materials to be recycled, reconditioned or
reclaimed.
"Property damage" to "your work"' -arising
out of it or any part of it and included in
This exclusion does not apply to "bodily
the ` "products -- completed operations
injury" or "property damage" arising out of
hazard."
heat, smoke or fumes from a hostile fire.
As used in this -exclusion, a hostile fire
This exclusion does not apply if the dam -
means one which becornes uncontrollable
aged work or the work out of which the
or breaks out from where it was intended
damage arises was performed on your be -
to be.
half by,a subcontractor.
h. Aircraft or Watercraft m.
Damage to Impaired Property or Prop-
erty Not Physically Injured
"Bodily injury" or "property damage" arising
out of the ownership, maintenance, use or
"Property damage" to "impaired property"
entrustment to others of any:
or property that has not been physically
injured, arising out of;
1) "Aircraft" owned by or chartered with-
out crew by or on behalf of any in-
1) A defect, deficiency, inadequacy or
sured; or
dangerous condition in "your product'
or. "your work';.. or
2) Watercraft 51 feet long or longer.
2) A delay or failure by you or anyone
Use includes operation and loading or
acting on your behalf to perform a
unloading.
contract or agreement in accordance
with its terms.
This exclusion does not apply to:
This exclusion does not apply to the loss of
1) A watercraft while ashore on premises
use of other property arising out of sudden
you own or rent; or
and accidental physical injury to "your
CC 70 00 (Ed. 08 94) Page 7 of 17
Printed in U.S.A.
n.
o.
product or "your work" after it has been
put to its intended use.
Personal and Advertising Injury
"Personal injury" or "advertising injury":
1) Arising out of oral or written publica-
tion of material, if done by or at the
direction of the insured with knowl-
edge of its falsity;
2) Arising out of oral or written publica-
tion of material whose first publication
took place before the beginning of the
policy period; or
3) Arising out of the willful violation of a
penal statute or ordinance committed
by or with the consent of the insured.
Advertising Injury
"Advertising injury" arising out of:
1) Breach of contract, other than misap-
propriation 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, broad
casting, publishing or telecasting.
p. Professional Liability
"Bodily injury," "property damage,"
"personal injury" or "advertising injury" due
to rendering or failure to render any pro-
fessional service. This includes but is not
limited to:
1) Legal, accounting or advertising serv-
ices;
2) Preparing, approving, or failing to pre-
pare or approve maps, drawings,
opinions, reports, surveys, change or-
ders, designs or specifications; C.
3) Supervisory, inspection or engineering
services;
CC 70 00 (Ed. 08 94) Page 8 of'17
4) Medical, surgical, dental, x-ray or
nursing services or treatment,
5) Any health service or treatment;
6) Any cosmetic or tonsorial service or
treatment;
7) Optometry or optical or hearing aid
services including the prescribing,
preparation, fitting, demonstration or
distribution of opthalmic lenses or
similar products or hearing aid devices;
8) Ear piercing services; and
9) Services in the practice of pharmacy,
but this exclusion does not apply to an
insured whose operations include
those of a retail druggist or drugstore.
SECTION II -- WHEN THIS INSURANCE APPLIES
1. "Bodily injuryor "property damage":
a. With respect to "bodily injury" and
"property damage" arising out of the own-
ership, maintenance, use, loading or un-
loading, or entrustment to others of any
"auto," this insurance applies only if the
"occurrence" happens during the policy
period.
b. With respect to "bodily injury" to:
1) An "employee" of the insured arising
out of and in the course of employ-
ment by the insured; or
2) The spouse, child, parent, brother or
sister of that "employee" as a conse-
quence of 1) above,
this insurance applies only if:
1) "Bodily injurycaused by an accident
occurs during the policy period; or
2) The "employee's" last day of last expo-
sure to the conditions of employment
that caused or aggravated "bodily in-
juryby disease occurs during the
policy period.
With respect to any other "bodily injury"
and "property damage," this insurance
applies to "bodily injury' or "property dam-
age" which occurs during the policy pe-
Printed in U.S.A.
riod, but this insurance does not apply to 1) Coverages A and B do not apply to
''bodily injury" or "property damage" which "bodily injury" or "property damage"
occurred before the effective date shown that occurred before you acquired or
in the Declarations or which occurs after ` formed the organization;and
the policy period.
2) Coverages A and B do not apply to
2. Personal injuryor advertising injury": 11personal injury or advertising injury
arising out of an offense committed
This insurance applies to "personal injury" or before you acquired or formed the or -
"advertising injury" only if caused by an offense ganization.
committed during the policy period.
3. With respect to Coverage A, anyone who is an
3. With respect to any "underlying insurance" insured under the "underlying insurance" is an
which is Employee Benefits Liability insurance, insured, but only to the extent the "underlying
the insurance provided by Coverage A applies insurance" applies.
only to claims made, against the insured
according to the terms and conditions of the 4
underlying Employee Benefits Liability Cover-
age
SECTION III -- WHO IS AN INSURED
1. If you are designated in the Declarations as:
a. An individual, you and your spouse are in-
sureds, but only with respect to the con-
duct 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 busi-
ness.
c. An organization other than a partnership or
joint venture, you are an insured. Your
"executive officers and directors are in -
Any person or organizauon to whom or to
which you are obligated by virtue of a written
contract to provide such insurance as afforded
by this Coverage Part is an insured, but only
with respect to liability arising out of "your
work, "your product" and to property owned
or used by you.
5. Each of the following is also an insured, with
respect to an "occurrence arising out of the
ownership,` maintenance, use, loading or un-
loading or entrustment to others of any "auto":
a. Anyone is an ` insured while using any
"auto" with your permission except:
1) The owner of an "auto" you hire or
borrow from one of your "employees"
or a member of his or her household.
This exception does not apply if the
"auto" is a trailer connected to an
"auto" you own;
sureds, but only with respect to their duties
as your officers or directors. Your stock 2) Someone using an "auto" while he or
holders are also insureds, but only with re she is working in a' business of selling,
spect to their liability as stockholders. servicing, repairing, parking or storing
"autos unless that business is yours
2. Any reference to the Named Insured shall in-
clude the insured named in the Declarations 3) Anyone other than your "employees,"
but shall also include: partners, a lessee or borrower of an
"auto" or any of their employees, while
a. Any of your subsidiaries; moving property to or from an "auto";
and
b. Any other organization over which you ex-
ercise control and actively manage; and 4) A partner of yours for any "auto"
c. Any organization you newly acquire or
form, other than a partnership or joint
venture, and over which you maintain
ownership or majority interest, if there is
no other similar insurance available to that
organization. However:
owned by him or her or a member of
his or her household.
b. Anyone liable for the conduct of an in-
sured described in paragraph 5. a. above
is an insured but only to the extent of that
liability.
CC 70 00 (Ed. 08 94) Page 9 of 17 Printed in U.S.A.
6. Each of the following is also an insured:
a. Your "employees," other than your
"executive officers," but only for acts within
the scope of their employment by you, or
while performing duties related to the
conduct of your business. However, no
"employee" is an insured for:
1) "Bodily injury" or "personal injury":
a) To you, to your partners or mem-
bers (if you are a partnership or
joint venture), or to a co
"employee" while in the course of
his or her employment or while
performing duties related to the
conduct of your business;
b) To the spouse, child, parent,
brother or sister of that co-
"employee" as a consequence of
paragraph 1) a) above;
c) For which there is any obligation
to share damages with or repay
someone else who must pay
damages because of the injury de-
scribed in paragraphs 1) a) or b)
above; or
d) Arising out of his or her providing
or failing to provide professional
health care services.
2) "Property damage" to property:
a) Owned, occupied or used by, or
b)Rented to, in the care, custody or
control of, or over which physical
control is being exercised for any
purpose by
you, any of your "employees" or, if you
are a partnership or joint venture, by
any partner or member.
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 prop-
erty; 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 Coverage Part.
7. With respect to "mobile equipment' registered
in your name under any motor vehicle registra-
tion law, any person is an insured while driving
such equipment along a public highway with
your permission. Any other person or organiza-
tion responsible for the conduct of such person
is also an insured, but only with respect to li-
ability arising out of the operation of the
equipment, and only if no other insurance of
any kind is available to that person or organi-
zation for this liability. However, no person or
organization is an insured with respect to:
a. "Bodily injuryto 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.
8. Each of the following is also an insured with
respect to any "aircraft" chartered with a pilot
or crew:
Any person using such "aircraft' and any person
or organization legally responsible for its use,
provided its actual use is with your permission
except:
a. The owner, pilot or air crew thereof or any
other person operating the "aircraft"; or
b. Any manufacturer of "aircraft," engines or
aviation accessories, or any aviation sales,
service or repair organization, or airport or
hangar operator or any employee of any of
them.
9. With respect to any watercraft that you do not
own that is less than 51 feet long, any person is
an insured while operating such watercraft with
your permission.
CC 70 00 (Ed. 08 94) Page 10 of 17 Printed in U.S.A.
10. No person oi- organization is an insured with 5. Under Coverage B, the "Retained Limit' applies
respect to the conduct of any current or past as follows:
partnership or joint venture that is not shown
as a Named Insured in the Declarations. a. To all damages because of "bodily injury"
and "property damage as the result of any
SECTION IV -- LIMITS OF INSURANCE one "occurrence" regardless of the number
of persons or organizations who sustain
1. The Limits of Insurance shown in the Declara- damages because of the "occurrence."
tions and the rulesbelow fix the most we will
pay regardless of the number of: b. To all damages because of all "personal
injury" and all "advertising injury" sustained
a. Insureds; by any one person or organization.
b. Claims made or "suits" brought; or We may pay any part or all of the "Retained
Limit" to effect settlement of any claim or "suit"
c. Persons or organizations making claims or and, upon notification of the action taken, you
bringing "suits." shall promptly reimburse us for such part of the
"Retained Limit" as has been paid by us.
2. The Products --Completed Operations Aggre
gate limit is the most we will pay under Cover- 6. To determine the limit of our liability, all "bodily
age A and Coverage B combined for damages injury and "property damage" arising out of
included in the "products completed opera- continuous or repeated exposure to substan-
tions hazard." tially the same general harmful conditions shall
be considered one "occurrence."
3. The General Aggregate Limit is the most we will
pay for damages under Coverage A and Cov- 7. The limits of insurance of this Coverage Part
erage B combined; except: apply separately to each consecutive annual
period and to any remaining period of less
a. For damages included in the "products -- than 12 months, starting with the beginning of
completed operations hazard"; and the policy period shown in the Declarations,
unless the policy period is extended after issu-
b. Coverages included in "underlying ance for an additional period of less than 12
insurance" to which no underlying aggre- months. In that case, the additional period will
gate applies. be deemed part of the last preceding period
for purposes of determining the limit of
4. Subject to 2. or 3. above, whichever applies, insurance.
the Each Occurrence Limit is the most we will
pay: SECTION V -- COMMERCIAL CATASTROPHE
LIABILITY CONDITIONS
a. With respect to "bodily injuryand
"property damage" under Coverage A and We have no duty to provide coverage under this
Coverage B combined, for the sum of Coverage Part unless you and any other involved
damages because of all "bodily injury" and insured have fully complied with the Conditions
"property damage" arising out of any one contained in this Coverage Part.
"occurrence.,
1: Appeals
b. With respect to "personal injury" and
"advertising injury" under Coverage A and If you; any other involved insured or the
Coverage B combined, for the sum of all underlying insurer elects not to appeal a
damages because of all "personal_ injury" judgment in excess of the underlying limit or
and all "advertising injury sustained by any the "Retained Limit," we may elect to do so at
one person or organization. our own expense. We will pay any resulting
taxable costs, disbursements and interest. The
c. With respect to Employee Benefit Liability appeal does not increase the Limits of
coverage under Coverage A if included Insurance.
under: "underlying insurance," for the sum
.of all damages sustained by any one
"employee" or former "employee."
CC 70 00 (Ed. 08 94) Page 11 of 17 Printed in U.S.A.
2. Bankruptcy
or settlement of any claim or defense
against the "suit';
Bankruptcy or insolvency of the insured or of
the insured's estate will not relieve us of our
4) Assist us or the underlying insurer
obligations under this Coverage Part.
upon request in the enforcement of
any right against any person or organi-
3. Duties in the Event of Occurrence, Offense,
zation which may be liable to the in -
Claim or Suit
sured because of injury or damage to
which this insurance may also apply;
a. You must see to it that we are notified as
and
soon as practicable of an "occurrence" or
an offense whenever it appears likely it will
5) Comply with all the terms and condi-
result in a claim involving this Coverage
Lions of any "underlying insurance."
Part. Notice should include:
d. If you or any other involved insured be-
1) How, when and where the "occur-
comes responsible, under the terms of this
rence" or offense took place;
Coverage Part, for the investigation or set-
tlement of any claim or defense against
2) The names and addresses of any in-
any "suit," you and any other involved in-
jured persons and witnesses; and
sured:
3) The nature and location of any injury
1) Must use due diligence and sound
or damage arising out of the
judgment to settle all such claims or
"occurrence" or offense.
"suits" that should be settled; but
Notice of an "occurrence" or offense is not
2) May not make any settlement for any
notice of a claim.
sum in excess of the "Retained Limit"
without our approval
-_ b.-___If a claim is made or "suit" is brought
against any insured, you must:
e. Except as provided in paragraph d, above,
no insured will, except at that insured's
1) Immediately record the specifics of the
own cost, voluntarily make a payment, as -
claim or "suit" and the date received,
sume any obligation or incur any expense,
and
other than for first aid, without our con-
sent.
2) Notify us as soon as practicable.
4. Legal Action Against Us
You must see to it that we receive written
notice of the claim or "suit" as soon as
No person or organization has a right under
practicable whenever it appears likely that
this Coverage Part:
such claim or "suit" will involve this Cover-
age Part.
a. To join us as a party or otherwise bring us
into a "suit" asking for damages from an in-
c. You and any other involved insured must:
sured; or
1) Immediately send us copies of any
b. To sue us on this Coverage Part unless all
demands, notices, summonses or legal
of its terms have been fully complied with.
papers received in connection with
the claim or "suit" whenever it appears
A person or organization may sue us to recover
likely that the claim will involve this
on an agreed settlement or on a final judgment
Coverage Part or whenever we have
against an insured obtained after an actual trial,
assumed the duty to defend you;
but we will not be liable for damages that are
not payable under the terms of this Coverage
2) Authorize us upon our request to ob-
Part or that are in excess of the applicable limit
tain records and other information;
of insurance. An agreed settlement means a
settlement and release of liability signed by us,
3) Cooperate with us and with the
the insured and theclaimantor the claimant's
underlying insurer in the investigation
legal representative.
CC 70 00 (Ed. 08 94) Page 12 of 17 Printed in U.S.A.
5. Maintenance of "Underlying Insurance"
a. The "underlying insurance" described in
the Declarations shall be an accurate rep-
resentation of all policies issued to you and
which relate to this insurance.
b. With respect to all Named Insureds cov-
ered under the terms of this Coverage Part,
YOU must maintain the "underlying
insurance" in effect during the policy pe-
riod of this Coverage Part. You may not
reduce the coverage or limits of insurance
available without our written consent.
C. You must, as soon as practicable, report
any material change in premiums charged
for "underlying insurance." We may then
adjust the premium for this Coverage Part
in accordance with our rules and rates.
d. You must, as soon as practicable, report to
us all changes in coverage provided by the
"underlying insurance including:
1) Additional insureds newly added to
the policy; and
2) Insurance coverage for exposures not
previously insured by the -"underlying
insurance."
You will furnish, upon our request, exact
copies of such changes or additional
insurance.
e. Failure to comply with paragraphs a., b., c.
and d.of this condition shall not invalidate
this Coverage Part. In the event such a
failure occurs, we shall be liable under
Coverage A only to the extent we would
have been liable had you complied.
6. Representations
By accepting this policy, you agree:
a. The statements in the Declarations are ac-
curate and complete; -
b. Those statements are based upon repre-
sentations you made to us; and
c. We have issued this policy in reliance
upon your representations.
7. Separation of Insureds
Except with respect to the Limits of Insurance,
and any rights or duties specifically assigned 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.
8. ` Transfer of Rights of Recovery Against
Others To Us
a. If the insured has rights to recover all or
part of any payment we have made under
this Coverage Part, those rights are trans-
ferred 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.
b. Any recoveries made shall be applied as
follows:
1) First, to reimburse anyone who has
paid damages in excess of our pay-
ments;
2) Second, reimburse us up to the
amount we have paid for damages;
and
3) Last, to reimburse anyone who has
paid damages to which this insurance
was excess.
Our share of the reasonable expenses in-
curred in securing any recovery shall not
exceed the proportion of damages we
paid to the total damages paid.
Any different method of apportioning re-
coveries and expenses may be used by
agreement of all those who paid damages.
9. "Underlying Insurance"
a. In the event of bankruptcy, insolvency or
financial impairment of the insurance
company that issued the "underlying
insurance," we shall be liable under Cover-
age A only to the extent we would other-
wise have been liable.
b. If no coverage exists under the "underlying
insurance" because you or any involved in -
CC 70 00 (Ed. 08 94) Page 13 of 17 Printed in U.S.A.
sured failed to comply with the policy
terms and conditions, we shall be liable
under Coverage A and Coverage B only to
the extent we would have otherwise been
liable.
c.. If any aggregate limit in any "underlying
insurance becomes completely used up,
You must see to it that we receive written
notice as soon as practicable.
10. Two or More Coverage Parts or Policies
Issued By Us
If this Coverage Part and any other Coverage
Part or policy issued to you by us or any Com-
pany affiliated with us apply, the maximum
limit of liability under all Coverage Parts or
policies shall not exceed the highest applicable
limit of liability under any one Coverage Part or
policy. This condition does not apply to any
Coverage Part or policy issued by us or any af-
filiated Company to apply:
a. As "underlying insurance," or
b. Specifically as excess insurance over this
Coverage Part.
11. Other Insurance
If other valid and collectible insurance is avail-
able to the insured for loss covered hereunder,
this Coverage Part will be excess of such other
insurance. This condition does not apply to
insurance purchased specifically to be either
quota share with this insurance or excess of this
insurance.
SECTION VI - DEFINITIONS
With respect to Coverage A, the definitions con-
tained in the "underlying insurance" shall apply in
place of the definitions shown below.
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 publication 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. "Aircraft" means any heavier-than-air or
lighter -than -air aircraft designed to transport
persons or property in the air or space.
3. "Auto means a land rnotor vehicle, trailer or
semitrailer designed for travel on public roads,
including any attached machinery or equip-
ment. "Auto" does not include "mobile equip-
ment" but does include self-propelled vehicles
with the following types of permanently at-
tacked equipment:
a. Equipment designed primarily for:
1) Snow removal;
2) Road maintenance, but not construc-
tion or resurfacing; or
3) Street cleaning;
b. Cherry pickers and similar devices
mounted on automobile or truck chassis
and used to raise or lower workers; and
c. Air compressors, pumps and generators,
including spraying, welding, building
cleaning, geophysical exploration, lighting
and well servicing equipment.
4. "Bodily injury means bodily injury, sickness or
disease sustained by a person, including death,
shock, mental anguish or mental injury by that
person at any time which results as a conse-
quence of the bodily injury, sickness or disease.
5. "Employee" includes a person leased to you by
a labor leasing firm under an agreement be-
tween you ' and the labor leasing firm to per-
form duties related to the conduct of your
business.
6. "Executive officer" means a person holding
any of the officer positions created by your
charter, constitution, by-laws or any other
similar governing document. .
7. "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 de-
fective, deficient, inadequate or dangerous;
or
CC 70 00 (Ed. 08 94) Page 14 of 17 Printed in U.S.A.
b. You have failed to fulfill the terms of a
contract or agreement,
if such property can be restored to use by:
a. The repair, replacement, adjustment or
removal of "your product" or- "your work';
or
b. Your fulfilling the terms of the contract or
agreement.
8. "Insured contract means:
That part of any contract or agreement pertain-
ing to your business under which you assume
the liability of another to pay damages because
of:
a. "Bodily injuryor "property damage" to a
third person or organization, if the contract
or agreement is made prior to the "bodily
injury" or "property damage.
b. "Personal injury" or "advertising injury" to a
third person or organization, if the contract
or agreement is made prior to the offense
causing the "personal injury" or "advertising
injury."
d. That holds a person or organization en-
gaged in the business of transporting prop-
erty by "auto" for hire harmless for your use
of an "auto" over a route or territory that
person or organization is authorized to
serve by public authority.
9. "Mobile equipment" means any of the follow-
ing types of land vehicles, including any
attached machinery or equipment, but does
not include any vehicle defined as an "auto":
a. Bulldozers, farm machinery, forklifts and
other- vehicles designed for use principally
off public roads;
b. Vehicles maintained for use solely on or
next to premises you own or rent;
c. Vehicles that travel on crawler treads;
d. Vehicles; whether self-propelled or not,
maintained primarily to provide mobility to
permanently mounted:
1) Power cranes, shovels, loaders, diggers
or drills; or
2) Road construction or resurfacing
equipment such as graders, scrapers or
An "insured contract" does not include that part rollers;
of any contract or agreement:
e. Vehicles not described in paragraphs a., b.,
a. That indemnifies an architect, engineer or - c or d. above that are not self-propelled
surveyor for injury or damage arising out and are maintained primarily to provide
of: mobility to permanently attached equip-
ment of the following types:
1) Preparing, approving or failing to pre-
pare or approve maps, drawings, 1) Air compressors, pumps and genera-
opinions, reports, surveys, change or- tors, including spraying, welding,
ders, designs or specifications; or building cleaning, geophysical explora
tion, lighting and well servicing equip-
2) Giving directions or _ instructions, or ment or
failing to give them, if that is the pri-
mary cause of the injury or damage; 2) Cherry pickers and similar devices
used to raise or lower workers; or
b. ' Under which the insured, if an architect,
engineer or surveyor, assumes liability for f. Vehicles not described in paragraphs a., b.,
an injury or damage arising out of the in- c. or d. above maintained primarily for
sured's rendering or failing to render pro- purposes other than the transportation of
fessional services, including those listed in persons or cargo.
a. above, and supervisory, inspection or
engineering services;
C. That pertains to the loan, lease or rental of
an "auto" to you or any of your
"employees," if the "auto" is loaned, leased
or rented with a driver; or
10. "Occurrence" means an accident, including
continuous or repeated exposure to substan-
tially -the same general harmful conditions.
CC 70 00 (Ed. 08 94) Page 15 of 17 Printed in U.S.A.
11. "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 or abuse of process;
c. The wrongful eviction from, wrongful entry
into, or invasion of the right of private oc-
cupancy of a room, dwelling or premises
that a person occupies, if committed 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.
12. a. "Products --completed operations haz-
ard" includes all "bodily injury" and "prop-
erty damage' occurring away from prem-
ises you ownor rent and arising out of
"Your products" or "your work" except:
_1) Products that are still in your physical
possession; or
2) Work that has not yet been completed
or abandoned.
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 sub-
contractor working on the same pro-
ject.
Work that may need service, maintenance,
correction, repair or replacement, but
which is otherwise complete, will be
treated as completed.
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;
2) The existence of tools, uninstalled -
equipment or abandoned or unused
materials; or
3) Products or operations for which the
classification or manual of rules for the
"underlying insurance" includes prod-
ucts or completed operations.
13. "Property damage" means:
a. Physical injury to tangible property, includ-
ing all resulting loss of use of that property.
All such loss of use shall be deemed to oc-
cur 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.
14. "Retained Limit" means the greater of:
a. The amount stated in the Declarations as
Retained Limit; or
b. The amount payable as damages under
any other valid and collectible insurance
available to the insured, other than
"underlying insurance" or insurance pur-
chased specifically in excess of this insur-
ance.
15. "Suit" means a civil proceeding in which dam-
ages because of "bodily injury," "property dam-
age," "personal injury" or "advertising injury" to
which this insurance applies are alleged. "Suit"
includes:
a. An arbitration proceeding in which such
damages are claimed and to which the in-
sured must submit or does submit with our
consent; or
b. Any other alternative dispute resolution
proceeding in which such damages are
claimed and to which the insured submits
with our consent.
CC 70 00 (Ed. 08 94) Page ' 16 of 17 Printed in U.S.A.
16. "Underlying insurance" means the self-insur-
b. The providing of or failure to provide
ance coverage or insurance afforded by the
warnings or instructions.
policies listed in the Schedule of Underlying
Insurance contained in the Declarations, in-
"Your product" does not include vending ma-
cluding their renewals or replacements.
chines or other property rented to or located
for the use of others but not sold.
17. "Your product' means:
18. "Your work" means
a. Any goods or products, other than real
property, manufactured, sold,` handled,
a. ` Work or operations performed by you or
distributed or disposed of by:
on your behalf; and
1) You;
b. Materials, parts or equipment furnished in
connection with such work or operations.
2) Others trading under your name; or;
"Your work" includes:
3) A person or organization whose busi-
ness or assets you have acquired; and
a. Warranties or representations made at any
time with respect to the fitness, quality, du-
b. Containers (other than vehicles), materials,
rability, performance or use of "your work";
parts or equipment furnished in connec-
and
tion with such goods or products.
b. The providing of or failure to provide
"Your product" includes:
warnings or instructions:
a. Warranties or representations made at any
time with respect to the fitness, quality, du-
rability, performance or use of "your prod-
uct"; and
Includes copyrighted material of the insurance Services Office with its permission.
CC 70 00 (Ed. 08 94) Page 17 of 17 Printed in U.S.A.
EXCLUSION --
EMPLOYERS LIABILITY PUMPER.
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
This endorsement modifies insurance provided under the following:
COMMERCIAL CATASTROPHE LIABILITY COVERAGE FORM
The following exclusion is added with respect to Coverage A only (Section 1, EXCLUSIONS Paragraph 2):
This insurance does not apply to "bodily injury" to:
1) An "employee",of the insured arising out of and in the course of employment by the insured; or
2) The spouse, child, parent, brother or sister of that "employee" as a consequence of 1) above.
This exclusion applies:
1) Whether the insured may be liable as an employer or in any other capacity; and
2) To any obligation to share damages with or repay someone else who must pay damages because of
the injury.
This exclusion does not apply to liability assumed by the insured under an "insured contract."
THIS ENDORSEMENT MUST BE ATTACHED TO A CHANGE ENDORSEMENT WHEN ISSUED AFTER THE POLICY
IS WRITTEN.
Includes copyrighted material of the Insurance Services Office with its permission.
CC 75.45 (Ed. 08 94) Printed in U.S.A.
CHANGES TO PERSONAL AND
ADVERTISING INJURY LIABILITY
COVERAGE B
THIS ENDORSEMENT CHANGES THE POLICY.
_ PLEASE READ IT CAREFULLY.
This endorsement modifies insurance provided under the following:
COMMERCIAL CATASTROPHE LIABILITY COVERAGE PART
A. Paragraphs 4. and 5. of COVERAGE B -- EX-
material whose first publication took
CESS LIABILITY OVER RETAINED LIMIT --
place before the beginning of the
INSURING AGREEMENT are replaced with
policy period;
the following: -
4) Arising out of, or alleged to arise out
4. This insurance applies to "personal injury"
of, the willful violation of a penal
only if caused by an offense:
statute or ordinance committed by,
at the direction of, or with the
a) Committed anywhere in the world;
knowledge or consent of any in -
and
sured;
b) Arising out of the conduct of your
5) Arising out of, or alleged to arise out
business:
of, breach of contract;
5. This insurance applies to "advertising in-
6) Arising out of, or alleged to arise out
jury" only if caused by an offense corn-
of, the failure of goods, products or
mitted:
services to conform with advertised
-
quality or performance;
a) Anywhere in the world; and
b) In the course of "your advertising
7) Arising out of, or alleged to arise out
of the wrong description of the
activities."
price of goods, products or services;
B. Exclusion 3.n. under Coverage B (Section I,
8) Arising out of, or alleged to arise out
EXCLUSIONS) is replaced by the following:,
of, infringement of patent, trade-
rt. Personal and Advertising Injury
mark, service mark, trade name,
trade dress, trade secrets, or copy -
"Personal injury" or "advertising injury":
right, other than copyrighted adver-
tising materials,
1) Arising out of an offense committed
9) Arising out of, or alleged to arise out
by an insured whose business is ad-
of, unfair competition; or
verdsing, broadcasting, publishing
telecasting, or telemarketing. How-
10) Arising out of, or alleged to arise out
ever, this exclusion does not apply
of, antitrust violations.
to offenses a., b., or C. under the
definition of "personal injury"; C.
Exclusion 3.o. under Coverage B (Section I,
2) Arising out of, or alleged to arise out
EXCLUSIONS) is deleted.
of, oral or written publication of D.
The definitions of "advertising injury" and
material, if done by or at the direc- -
"personal injury" in DEFINITIONS (Section VI)
tion of the insured with knowledge
are replaced by the following:
of its falsity;
3) Arising out of, or allegedtoarise out
1. "Advertising injury" means injury, other
than: "bodily injury" or "personal injury,"
of, oral or written publication of
arising solely out of one or more of the
CC 76 18 (Ed. 12 96) Page 1 of 2
Printed in U.S.A.
following offenses committed in the
c. The wrongful eviction from, wrongful
course of "your advertising activities":
entry into, or invasion of the right of
private occupancy of a ' room,
a. Misappropriation of advertising ideas;
dwelling or premises that a person
or organization occupies, if commit-
b. Infringement of copyrighted advertis-
Led by or on behalf of its owner,
ing materials;
landlord or lessor;
c. Oral or written publication of mate-
d. Oral or written publication of mate-
rial that slanders or libels a person or
rial that slanders or libels a person or
organization or disparages a person's
organization or disparages a person's
or organization's goods, products or
or organization's goods, products or
services; or
services; or
d. Oral or written publication of mate-
e. Oral or written publication of mate-
rial that violates a person's right of
rial that violates a person's right of
- privacy.
privacy.
11. "Personal injury" means injury, other E.
The following definition is added to DEFINI-
than "bodily injury" or "advertising injury,"
TIONS (Section V);
arising solely out of one or more of the
following offenses:
"Your advertising activities" means the
promotion of your goods, products; services,
a. False arrest, detention or imprison-
name or image through printed or electronic
ment;
media.
b. Malicious prosecution;
THIS ENDORSEMENT MUST BE ATTACHED TO A CHANGE ENDORSEMENT WHEN ISSUED AFTER THE POLICY
IS WRITTEN.
LIAR 2 9
1999
CC 76 18 (Ed. 12 96) Page 2 of 2
Printed in U.S.A.
following offenses committed in the
c. The wrongful eviction from, wrongful
course of "your advertising activities":
entry into, or invasion of the right of
private occupancy of a room,
a. Misappropriation of advertising ideas;
dwelling or premises that a person
or organization occupies, if commit-
b. Infringement of copyrighted advertis-
ted by or on behalf of its owner,
ing materials;
landlord or lessor;
c. Oral or written publication of mate-
d. Oral or written publication of mate-
rial that slanders or libels a person or
rial that slanders or libels a person or
organization or disparages a person's
organization or disparages a person's
or organization's goods, products or
or organization's goods, products or
services; or
services; or
d. Oral or written publication of mate-
e. Oral or written publication of mate-
rial that violates a person's right of
rial that violates a person's right of
privacy.
privacy.
11. "Personal injury" means injury, other E.
The following definition is added to DEFINI-
than "bodily injury" or "advertising injury,"
TIONS (Section V);
arising solely out of one or more of the
following offenses:
"Your advertising activities" means the
promotion of your goods, products, services,
a. False arrest, detention or imprison-
name or image through printed or electronic
ment;
media.
b. Malicious prosecution;
THIS ENDORSEMENT MUST BE ATTACHED TO A CHANGE ENDORSEMENT WHEN ISSUED AFTER THE POLICY
IS WRITTEN.
LIAR
2 9 1999
CC 76 18 (Ed. 12 96) Page 2 of 2
Printed in U.S.A.
CITY COUNCIL
LEONIS C. MALBURG
Mayor
THOMAS A. YBARRA
Mayor Pro -Tern
Wm. "BILL" DAVIS
Councilman
H. "LARRY" GONZALES
Councilman
W. MICHAEL McCORMICK
Councilman
BRUCE V. MALKENHORST CITY HALL
City Administrator / City Clerk 4305 SANTA FE AVENUE, VERNON, CALIFORNIA 90058
FAX (323) 581-7924 TELEPHONE (323) 583-8811
March 10, 1999
City Council
City of Vernon
Honorable Members:
DAVID B. BREARLEY
City Attorney
FAX: (626) 330-5818
KEVIN WILSON
Director of Community Services & Water
FAX: (323) 588-2761
KENNETH J. DeDARIO
Director of Municipal Utilities
FAX: (323) 583-1983
DAVE TELFORD
Fire Chief
FAX: (323) 581-1385
BRUCE W. OLSON
Police Chief
FAX: (323) 583-5236
The Community Services Department has selected MTGL to furnish
material testing and special inspection services for construction
of the City Hall Addition and Remodel project.
MTGL will furnish services for concrete compaction testing and
special inspection for fire proofing installation, high strength
bolting, and welding. The estimated total cost for providing the
needed services is $15,340.00. The contract will be on a time
and materials basis with a not to exceed amount of $19,175.00.
This project has been reviewed by the Director of Community
Services and Water and the City Attorney's office, and it is
hereby recommended that the Consulting Services Agreement be
approved to facilitate the construction of the City Hall Addition
and Remodel project.
Very truly yours,
uce V. Malke orst
City Clerk
BVM:rcm
March 10, 1999
TO: Bruce V. Malkenhorstt,,CCity Administrator
FROM: Samuel Kevin Wilson; -Director of Community Services & Water
SUBJECT: Material Testing and Special Inspection Services for Construction of the City Hall
Addition and Remodel Project
The Community Services Department has selected MTGL to furnish material testing and special
inspection services for construction of the City Hall Addition and Remodel project. The bid price
for the work is competitive with the other firm that submitted a cost proposal on the project.
MTGL will furnish services for concrete compaction testing and special inspection for fire proofing
installation, high strength bolting, and welding. The estimated total cost for providing the needed
services is $15,340.00. The contract will be on a time and materials basis with a not to exceed
amount of $19,175.00.
It is recommended that the attached consulting services agreement be approved to facilitate the
construction of the City Hall Addition and Remodel project.
Attachments
cc: City Attorney
C:\MyFiLes\MTGL-AWARD.wpd
OFFICE OF THE CITY ADMINISTRATOR/
CITY CLERK
INTER -OFFICE MEMORANDUM
DATE: March 30, 1999
TO: Kevin Wilson, Director of Utilities
FROM: Gloria J. Oros6,9>ief Deputy City Clerk
RE: MTG,, Inc. Agreement for Professional Consulting
Services
Enclosed for your files is a copy of the above referenced
agreement which was approved by City Council on March 16, 1999
through Resolution No. 7294.
Please provide this office with proof of insurance as indicated
in Section VII, No. 2 of said agreement. At that time, this
office will mail the fully executed agreement to MTG,, Inc:.
Thank you.
cc: Joan Francone, Risk Manager/Personnel Assistant