MSV GOLF Insurance PolicyA STOCK COMPANY
Secretary President
INSURANCE POLICY
Coverage afforded by this policy is provided by the Company (Insurer) and named in the Declarations.
MJIL 1000 06 10 Page 1 of 1
(800) 431-1270
In Witness Whereof , the company (insurer) has caused this policy to be executed and attested and countersigned
by a duly authorized representative of the company (insurer) identified in the Declarations.
MARKEL AMERICAN INSURANCE COMPANY
4521 Highwoods Parkway
Glen Allen, VA 23060
INTERLINE
PRIVACY NOTICE
We are committed to safeguarding your privacy. We understand your concerns regarding the privacy of your nonpublic
personal information. No nonpublic personal information is required to be collected when you visit our websites; however,
this information may be requested in order to provide the products and services described. We do not sell nonpublic per-
sonal information to non-affiliated third parties for marketing or other purposes. We only use and share this type of infor-
mation with non-affiliated third parties for the purposes of underwriting insurance, administering your policy or claim and
other purposes as permitted by law, such as disclosures to insurance regulatory authorities or in response to legal pro-
cess. Notwithstanding the foregoing, we may use this information for the purpose of marketing our own products and ser-
vices to you.
We collect nonpublic personal information about you from the following sources:
Information we receive from you on applications or other forms;
Information about your transactions with us, our affiliates, or others; and/or
Information we receive from consumer reporting agencies and inspection reports.
We do not disclose any nonpublic personal information about our customers/claimants or former customers/claimants to
anyone, except as permitted by law.
We may disclose nonpublic personal information about you to the following types of third parties:
Service providers, such as insurance agents and/ or brokers and claims adjusters; and/or
Other non-affiliated third parties as permitted by law.
We restrict access to nonpublic personal information about our customers/claimants to those individuals who need to
know that information to provide products and services to our customers/claimants or as permitted by law. We maintain
physical, electronic, and procedural safeguards to guard your nonpublic personal information.
Residents of California:
You may request to review and make corrections to recorded non-public personal information contained in our files. A
more detailed description of your rights and practices regarding such information is available upon request. Please con-
tact your agent/broker for instructions on how to submit a request to us.
MPIL 1007 03 14 Page 1 of 1
MARKEL AMERICAN INSURANCE COMPANY
MPIL 1074 07 14 Page 1 of 1
NOTICE TO POLICYHOLDERS
CLAIM REPORTING
Please immediately report a new claim under this policy to:
newclaims@markelcorp.com
For general claims inquiries after a claim has been reported, please email:
markelclaims@markelcorp.com
In order for us to expedite the handling of your claim and quickly refer it to the appropriate party,
please have the following information available:
Claim number (or report as new)
Your name, contact information and position with the Named Insured
Date of loss
Policy number and insured name
Details of loss
Our address and additional contact information are as follows:
Markel Claims
P.O. Box 2009
Glen Allen, VA 23058-2009
Phone: 800-362-7535 (800) 3MARKEL
Fax: 855-662-7535 (855) 6MARKEL
Markel understands the importance of having knowledgeable claims professionals prepared to
answer your questions with personal attention and expertise. With claims professionals located
across four times zones, you are sure to find the claims assistance you need -- when you need it.
PLEASE REFER TO THE POLICY FOR ANY NOTICE AND REPORTING PROVISIONS
AND DUTIES IN THE EVENT OF LOSS OR DAMAGE TO COVERED PROPERTY.
MARKEL AMERICAN INSURANCE COMPANY
Current Markel Company:
New Markel Company:
INTERLINE
POLICY NUMBER: MKLM3IM0049643
NOTICE TO POLICYHOLDERS –
TRANSFER OF INSURANCE CARRIER
SCHEDULE
Your expiring insurance policy was issued with the Current Markel Company shown in the Schedule above. Beginning
with the renewal of this policy, the insuring company will change to the New Markel Company, also shown above.
We remain committed to offering you the best service and quality products for your needs. If you have any questions,
please contact your insurance agent or representative.
MPIL 1076 08 15 Page 1 of 1
Markel American Insurance Company
Alterra America Insurance Company
IMPORTANT INFORMATION TO POLICYHOLDERS
The state of Florida requires an insurer to make a telephone number available for policy-holders to present inquiries or ob-
tain information about coverage, and provide assistance in resolving complaints.
In the event you need to contact someone about this policy for any reason, please contact your agent. If you have addi-
tional questions, you may contact the insurance company is-suing this policy directly at the address below:
MARKEL INSURANCE COMPANY
MARKEL AMERICAN INSURANCE COMPANY
4521 HIGHWOODS PARKWAY
GLEN ALLEN, VIRGINIA 23060-9817
(800) 431-1270
If you have been unable to contact or obtain satisfaction from the company or the agent, you may contact the:
FLORIDA DEPARTMENT OF FINANCIAL SERVICES
CONSUMER PROTECTION DIVISION
Within the state of Florida: 1-877-693-5236
Outside of the state of Florida: (850) 413-3089
Operators will provide you with additional information as to
which particular office location and address to mail in your
complaints/concerns.
Written correspondence is preferable so that a record of your inquiry is maintained. When contacting your agent, com-
pany or Bureau of Insurance, please have your Policy Number available.
MPIL 1078-FL 09 14 Page 1 of 1
INTERLINE
MARKEL AMERICAN INSURANCE COMPANY
U.S. TREASURY DEPARTMENT'S OFFICE OF FOREIGN
ASSETS CONTROL ("OFAC")
ADVISORY NOTICE TO POLICYHOLDERS
No coverage is provided by this Policyholder Notice nor can it be construed to replace any provisions of your policy. You
should read your policy and review your Declarations page for complete information on the coverages you are provided.
This Notice provides information concerning possible impact on your insurance coverage due to directives issued by
OFAC. Please read this Notice carefully.
The Office of Foreign Assets Control (OFAC) administers and enforces sanctions policy, based on Presidential
declarations of "national emergency". OFAC has identified and listed numerous:
Foreign agents;
Front organizations;
Terrorists;
Terrorist organizations; and
Narcotics traffickers;
as "Specially Designated Nationals and Blocked Persons". This list can be located on the United States Treasury's web
site – http//www.treas.gov/ofac.
In accordance with OFAC regulations, if it is determined that you or any other insured, or any person or entity claiming the
benefits of this insurance has violated U.S. sanctions law or is a Specially Designated National and Blocked Person, as
identified by OFAC, this insurance will be considered a blocked or frozen contract and all provisions of this insurance are
immediately subject to OFAC. When an insurance policy is considered to be such a blocked or frozen contract, no
payments nor premium refunds may be made without authorization from OFAC. Other limitations on the premiums and
payments also apply.
MPIL 1083 04 15 Includes copyrighted material of Insurance Services Office, Inc.
with its permission.
Page 1 of 1
/
Date Issued:
Issuing Office:
INLAND MARINE POLICY DECLARATIONS
POLICY NUMBER:
POLICY PERIOD:
This Policy becomes effective and expires at 12:01 a.m. Standard Time at Your Mailing Address Shown
Below.
NAMED INSURED & MAILING ADDRESS:PRODUCER NAME & MAILING ADDRESS:
IN RETURN FOR 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.
THIS POLICY CONSISTS ONLY OF THE FOLLOWING DECLARATION(S) AND COVERAGE(S)
FOR WHICH A PREMIUM IS INDICATED. THIS PREMIUM MAY BE SUBJECT TO
ADJUSTMENT.
PREMIUM:
$_____________
$_____________
$_____________
$_____________
$_____________
$_____________
( ) Premium charge for coverage of certified acts of terrorism. $_____________
(Per Policyholder Disclosure TRIA Attached)
( ) Coverage for certified acts of terrorism has been rejected; exclusion attached.
(Per Policyholder Disclosure TRIA Attached)
State Specific Assessments/Surcharges (if applicable):$_____________
TOTAL PREMIUM PAYABLE AT INCEPTION $_____________
OTHER ENDORSEMENTS MADE A PART OF THIS POLICY AT TIME OF ISSUE:
CL0100, CL 0160 02 16, CL 0610 01 15, CL0700_1006, CL2650_0604, IM1264, IM2019_0809, IM 2200 08 12, IM7000,
IM 7005 01 12, IM7020_0404, IM7201, IM 7206 01 12, IM7854_0404, IM 7860 11 12, IM 7902 01 12, IM 7905 01 12
Authorized Representative: _________________________
MADIM 1000 09 15 Page 1 of 1
MARKEL AMERICAN INSURANCE COMPANY
MKLM3IM0049643
March 22, 2017 March 22, 2018
Professional Course Management II, Ltd.
10000 Biscayne Blvd
Miami Shores FL 33138
Trilogy Risk Specialists, Inc.
3325 Paddocks Parkway, Suite 200
Suwanee GA 30025
Contractors Equipment 10,533
Electronic Data Processing Computer Coverage 1,125
This Policy is subject to a 25% Minimum Earned Premium.
X
11,658
04/11/2017
Marine-Atlanta
AAIS
CL 0100 03 99
Page 1 of 1
COMMON POLICY CONDITIONS
1.Assignment --This policy may not be
assigned without "our"written consent.
2.Cancellation --"You"may cancel this policy
by returning the policy to "us"or by giving
"us"written notice and stating at what future
date coverage is to stop.
"We"may cancel this policy,or one or more
of its parts,by written notice sent to "you"at
"your"last mailing address known to "us".If
notice of cancellation is mailed,proof of
mailing will be sufficient proof of notice.
If "we"cancel this policy for nonpayment of
premium,"we"will give "you"notice at least
ten days before the cancellation is effective.
If "we"cancel this policy for any other
reason,"we"will give "you"notice at least 30
days in advance of cancellation.The notice
will state the time that the cancellation is to
take effect.
"Your"return premium,if any,will be
calculated according to "our"rules.It will be
refunded to "you"with the cancellation notice
or within a reasonable time.Payment or
tender of the unearned premium is not a
condition of cancellation.
3.Change,Modification,or Waiver of Policy
Terms --A waiver or change of the "terms"
of this policy must be issued by "us"in
writing to be valid.
4.Inspections --"We"have the right,but are
not obligated,to inspect "your"property and
operations at any time.This inspection may
be made by "us"or may be made on "our"
behalf.An inspection or its resulting advice
or report does not warrant that "your"
property or operations are safe,healthful,or
in compliance with laws,rules,or
regulations.Inspections or reports are for
"our"benefit only.
5.Examination of Books and Records --
"We"may examine and audit "your"books
and records that relate to this policy during
the policy period and within three years after
the policy has expired.
CL 0100 03 99
Copyright,American Association of Insurance Services,
1998
AAIS This endorsement changes
CL 0160 02 16 the policy
Page 1 of 5 -- PLEASE READ THIS CAREFULLY --
AMENDATORY ENDORSEMENT
FLORIDA
1.Under Common Policy Conditions,
Cancellation is deleted and replaced by the
following:
Cancellation
a."You" may cancel this policy by:
1)returning the policy to "us"; or
2)giving "us" written notice and stating
at what date coverage is to stop.
b."We" may cancel this policy by delivering
or mailing written notice to "you" at the
address shown on the "declarations".
"Our" notice will state the specific
reason(s) for cancellation. Proof of
delivery or mailing is sufficient proof of
notice.
c.If this policy has been in effect for 90
days or less, "we" may cancel for any
reason.
1)However:
a)"We" may cancel this policy
based on property insurance
claims that are the result of an
act of God only if "we" can show,
by claims frequency or
otherwise, that "you" have failed
to take action reasonably
necessary as requested by "us"
to prevent further damage to
"your" property.
b)"We" may cancel this policy
based solely on a single property
insurance claim that is the result
of water damage only if "we" can
demonstrate that "you" have
failed to take action reasonably
requested by "us" to prevent a
future similar occurrence of
damage to the insured property.
2)If "we" cancel for nonpayment of
premium, "we" will give "you" notice
at least 10 days before the
cancellation is to be effective.
3)Except as provided in 4) below, if
"we" cancel for any reason other
than nonpayment of premium, "we"
will give "you" notice at least 20 days
before the cancellation is to be
effective.
However, "we" may cancel
immediately if there has been:
a)a material misstatement or
misrepresentation; or
b)a failure to comply with the
underwriting requirements that
"we" have established.
4)If this policy is issued to cover a
residential structure that has been
damaged by a hurricane or
windstorm that is the subject of:
a)a declaration of emergency
issued by the Governor; and
b)an order filed by the
Commissioner of Insurance
Regulation;
"we" may not cancel this policy until
at least 90 days after the residential
structure has been repaired. Such
property will be deemed repaired
when the work is substantially
completed such that the structure is
insurable by another authorized
insurer writing policies in Florida.
However, "we" may cancel this policy
prior to the completion of repairs as
follows:
a)upon 10 days' notice for
nonpayment of premium; or
b)upon 45 days' notice if:
(1)there has been a material
misstatement or fraud
related to the claim;
Copyright, American Association of Insurance Services, Inc., 2015
(2)"we" have determined that
"you" have unreasonably
caused a delay in the repair
of the residential structure;
or
(3)"we" have paid the policy
"limits" applicable to the
covered structure.
d.If this policy has been in effect for more
than 90 days, "we" may cancel based
only on one or more of the following
reasons:
1)a failure to pay premium when due;
2)a material misstatement;
3)a failure to comply, within 90 days
after the date of effectuation of
coverage, with underwriting
requirements established by "us"
before the date of effectuation of
coverage;
4)a substantial change in the risk
covered;
5)the cancellation is for all insureds for
a given class of insureds;
6)property insurance claims that are
the result of an act of God, but only if
"we" can show, by claims frequency
or otherwise, that "you" have failed to
take action reasonably necessary as
requested by "us" to prevent further
damage to "your" property; or
7)one or more property insurance
claims that are the result of water
damage, but only if "we" can
demonstrate that "you" have failed to
take action reasonably requested by
"us" to prevent a future similar
occurrence of damage to the insured
property.
Notwithstanding 1) through 7) above,
"we" may not cancel based on any
reason prohibited by law. If this policy is
issued to cover a residential structure or
its contents, this includes but is not
limited to credit information available in
public records.
e.If this policy has been in effect for more
than 90 days and:
1)"we" cancel for nonpayment of
premium, "we" will give "you" notice
at least 10 days before the
cancellation is to be effective;
2)except as provided in 3) and f.
below, "we" cancel for one or more
of the reasons provided in d.2)
through d.7) above, "we" will give
"you" notice at least 45 days before
the cancellation is to be effective; or
3)this policy is issued to cover a
residential structure or its contents, if
"we" cancel for any reason other
than nonpayment of premium, "we"
will give "you" notice at least 120
days before the cancellation is to be
effective.
f.If this policy has been in effect for more
than 90 days and is issued to cover a
residential structure that has been
damaged by a hurricane or windstorm
that is the subject of:
1)a declaration of emergency issued
by the Governor; and
2)an order filed by the Commissioner
of Insurance Regulation;
"we" may not cancel this policy until at
least 90 days after the residential
structure has been repaired. Such
property will be deemed repaired when
the work is substantially completed such
that the structure is insurable by another
authorized insurer writing policies in
Florida.
However, "we" may cancel this policy
prior to the completion of repairs as
follows:
1)upon 10 days' notice for nonpayment
of premium; or
2)upon 45 days' notice if:
a)there has been a material
misstatement or fraud related to
the claim;
b)"we" have determined that "you"
have unreasonably caused a
delay in the repair of the
residential structure; or
AAIS
CL 0160 02 16
Page 2 of 5
Copyright, American Association of Insurance Services, Inc., 2015
c)"we" have paid the policy "limits"
applicable to the covered
structure.
g.If this policy is:
1)issued to cover a residential
structure or its contents; and
2)"we" cancel for nonpayment of
premium which results from failure of
the mortgagee to pay the premium
when due;
"we" will reinstate the policy retroactive
to the date of cancellation if the premium
is received not more than 90 days after
the due date. By Florida law, the
mortgagee is required to reimburse "you"
for any penalty or fee imposed by "us"
and paid by "you" for reinstating the
policy.
h.Notwithstanding c. through g. above, if
this policy is issued to cover a residential
structure or its contents, "we" may
cancel by giving "you" notice at least 45
days before cancellation is effective if the
Florida Office of Insurance Regulation
finds that the cancellation of some or all
of "our" policies covering residential
structures or their contents is necessary
to protect the best interests of the public
or policyholders due to:
1)"our" financial condition;
2)the lack of adequate reinsurance
coverage for hurricane risk; or
3)other relevant factors;
and the Florida Office of Insurance
Regulation approves "our" plan for early
cancellation of some or all of "our"
policies.
i .If "you" or "we" cancel this policy, "your"
return premium, if any, will be refunded
within 15 business days after the
effective date of cancellation unless the
final policy premium is determined by
audit. If the final policy premium is
determined by audit, an audit will be
performed and premium refunded within
90 days from the date of cancellation. If
an audit cannot be completed within that
time, "we" will accept audit information that "you"
provide and refund any return premium within 10
business days after "we" receive the necessary
audit information from "you". If "we" are unable to
obtain audit information due to "your" lack of
cooperation, the deposit premium will be
considered fully earned. In all cases, if the return
premium is $5.00 or
less, "we" will not provide a refund unless "you"
expressly request it. Payment or tender of
unearned premium is not a condition of
cancellation.
2.Under Common Policy Conditions, the
following condition is added:
Nonrenewal
a.If "we" do not renew this policy, "we" will
give "you" notice at the address shown
on the "declarations". "Our" notice will
state the specific reason(s) for
nonrenewal. Proof of delivery or mailing
is sufficient proof of notice.
b."We" may nonrenew this policy for any
reason.
However:
1)"We" may nonrenew this policy
based on property insurance claims
that are the result of an act of God
only if "we" can show, by claims
frequency or otherwise, that "you"
have failed to take action reasonably
necessary as requested by "us" to
prevent further damage to "your"
property.
2)"We" may nonrenew this policy
based solely on a single property
insurance claim that is the result of
water damage only if "we" can
demonstrate that "you" have failed to
take action reasonably requested by
"us" to prevent a future similar
occurrence of damage to the insured
property.
AAIS
CL 0160 02 16
Page 3 of 5
Copyright, American Association of Insurance Services, Inc., 2015
3)"We" may nonrenew this policy
based on the filing of claims for
sinkhole loss only if:
a)the total of such claim payments
equals or exceeds the policy
"limits" of coverage for the policy
in effect on the date of loss, for
property damage to the covered
building(s), as set forth on the
"declarations"; or
b)"you" have failed to repair the
structure in accordance with the
engineering recommendations
made pursuant to Florida law
upon which any payment or
policy proceeds were based.
4)"We" may not nonrenew for any
reason prohibited by law. If this
policy is issued to cover a residential
structure or its contents, this includes
but is not limited to credit information
available in public records.
c.Except as provided in d. and e. below, if
"we" do not renew this policy, "we" will
give "you" notice at least 45 days before
the nonrenewal is to be effective.
d.Except as provided in e. below, if this
policy is issued to cover a residential
structure or its contents, "we" will give
"you" notice at least 120 days before the
nonrenewal is to be effective.
However, if the Florida Office of
Insurance Regulation finds that the
nonrenewal of some or all of "our"
policies covering residential structures or
their contents is necessary to protect the
best interests of the public or
policyholders due to:
1)"our" financial condition;
2)the lack of adequate reinsurance
coverage for hurricane risk; or
3)other relevant factors;
and the Florida Office of Insurance
Regulation approves "our" plan for early
nonrenewal of some or all of "our"
policies, "we" will give "you" notice at
least 45 days before the nonrenewal is to
be effective.
e.If this policy is issued to cover a
residential structure that has been
damaged by a hurricane or windstorm
that is the subject of:
1)a declaration of emergency issued
by the Governor; and
2)an order filed by the Commissioner
of Insurance Regulation;
"we" will give "you" notice at least 90
days before the nonrenewal is to be
effective. The effective date of such
nonrenewal will not be less than 90 days
after the residential structure has been
repaired. A damaged residential structure
will be deemed repaired when the work is
substantially completed such that the
structure is insurable by another
authorized insurer writing policies in
Florida.
However, "we" may nonrenew this policy
prior to the completion of repairs as
follows:
1)upon 10 days' notice for nonpayment
of premium; or
2)upon 45 days' notice if:
a)there has been a material
misstatement or fraud related to
the claim;
b)"we" have determined that "you"
have unreasonably caused a
delay in the repair of the
residential structure; or
c)"we" have paid the policy "limits"
applicable to the covered
structure.
3.Under Common Policy Conditions, the
following condition is added:
Renewal -- If "we" decide to renew this
policy, "we" will give "you" written notice of
the renewal premium at least 45 days prior to
the renewal date.
AAIS
CL 0160 02 16
Page 4 of 5
Copyright, American Association of Insurance Services, Inc., 2015
4.Under Common Policy Conditions,
Inspections is deleted and replaced by the
following:
Inspections -- "We" have the right, but are
not obligated, to inspect "your" property and
operations. This inspection may be made by
"us" or may be made on "our" behalf. An
inspection or its resulting advice or report is
not an agreement that "your" property or
operations are:
a.safe;
b.healthful; or
c.in compliance with laws, rules, or
regulations.
Inspections or reports are for "our" benefit
only.
CL 0160 02 16
AAIS
CL 0160 02 16
Page 5 of 5
Copyright, American Association of Insurance Services, Inc., 2015
AAIS This endorsement changes
CL 0610 01 15 the policy
Page 1 of 1 -- PLEASE READ THIS CAREFULLY --
CERTIFIED ACT OF TERRORISM EXCLUSION
1.The following definition is added.
"Certified act of terrorism" means an act that
is certified by the Secretary of the Treasury,
in consultation with the Secretary of
Homeland Security, and the Attorney
General of the United States:
a.to be an act of terrorism;
b.to be a violent act or an act that is
dangerous to human life, property, or
infrastructure;
c.to have resulted in damage:
1)within the United States; or
2)to an air carrier (as defined in section
40102 of title 49, United States
Code); to a United States flag vessel
(or a vessel based principally in the
United States, on which United
States income tax is paid and whose
insurance coverage is subject to
regulation in the United States),
regardless of where the loss occurs;
or at the premises of any United
States mission;
d.to have been committed by an individual
or individuals, as part of an effort to
coerce the civilian population of the
United States or to influence the policy or
affect the conduct of the United States
Government by coercion; and
e.to have resulted in insured losses in
excess of five million dollars in the
aggregate, attributable to all types of
insurance subject to the Terrorism Risk
Insurance Act, as amended.
2.The following exclusion is added.
CERTIFIED ACT OF TERRORISM
EXCLUSION
"We" will not pay for loss or damage caused
directly or indirectly by a "certified act of
terrorism". Such loss or damage is excluded
regardless of any other cause or event that
contributes concurrently or in any sequence
to the loss.
3.The following provisions are added.
a.Neither the "terms" of this endorsement
nor the "terms" of any other terrorism
endorsement attached to this Coverage
Part provide coverage for any loss that
would otherwise be excluded by this
Coverage Part under:
1)exclusions that address war, military
action, or nuclear hazard; or
2)any other exclusion; and
b.the absence of any other terrorism
endorsement does not imply coverage
for any loss that would otherwise be
excluded by this Coverage Part under:
1)exclusions that address war, military
action, or nuclear hazard; or
2)any other exclusion.
CL 0610 01 15
Copyright, American Association of Insurance Services, Inc., 2015
Copyright,American Association of Insurance Services,Inc.,2006
AAIS This endorsement changes
CL 0700 10 06 the policy
Page 1 of 1 --PLEASE READ THIS CAREFULLY --
VIRUS OR BACTERIA EXCLUSION
DEFINITIONS
Definitions Amended --
When "fungus"is a defined "term",the definition
of "fungus"is amended to delete reference to a
bacterium.
When "fungus or related perils"is a defined
"term",the definition of "fungus or related perils"
is amended to delete reference to a bacterium.
PERILS EXCLUDED
The additional exclusion set forth below applies
to all coverages,coverage extensions,
supplemental coverages,optional coverages,
and endorsements that are provided by the
policy to which this endorsement is attached,
including,but not limited to,those that provide
coverage for property,earnings,extra expense,
or interruption by civil authority.
1.The following exclusion is added under
Perils Excluded,item 1.:
Virus or Bacteria --
"We"do not pay for loss,cost,or expense
caused by,resulting from,or relating to any
virus,bacterium,or other microorganism
that causes disease,illness,or physical
distress or that is capable of causing
disease,illness,or physical distress.
This exclusion applies to,but is not limited
to,any loss,cost,or expense as a result of:
a.any contamination by any virus,
bacterium,or other microorganism;or
b.any denial of access to property
because of any virus,bacterium,or
other microorganism.
2.Superseded Exclusions --The Virus or
Bacteria exclusion set forth by this
endorsement supersedes the "terms"of any
other exclusions referring to "pollutants"or to
contamination with respect to any loss,cost,
or expense caused by,resulting from,or
relating to any virus,bacterium,or other
microorganism that causes disease,illness,
or physical distress or that is capable of
causing disease,illness,or physical distress.
OTHER CONDITIONS
Other Terms Remain in Effect --
The "terms"of this endorsement,whether or not
applicable to any loss,cost,or expense,cannot
be construed to provide coverage for a loss,
cost,or expense that would otherwise be
excluded under the policy to which this
endorsement is attached.
CL 0700 10 06
AAIS This endorsement changes
CL 2650 06 04 the policy
Page 1 of 2 --PLEASE READ THIS CAREFULLY --
NUCLEAR,BIOLOGICAL,AND CHEMICAL
TERRORISM EXCLUSION
1.The word terrorism,when shown in this
endorsement in quotation marks,has the
following meaning:
"Terrorism"means activities against persons,
organizations,or property of any nature:
a.that involve the following or preparation
for the following:
1)use or threat of force or violence;or
2)commission or threat of a dangerous
act;or
3)commission or threat of an act that
interferes with or disrupts an
electronic,communication,
information,or mechanical system;
and
b.when one or both of the following applies:
1)the effect is to intimidate or coerce a
government or the civilian population
or any segment thereof,or to disrupt
any segment of the economy;or
2)it appears that the intent is to
intimidate or coerce a government,or
to further political,ideological,
religious,social,or economic
objectives,or to express (or express
opposition to)a philosophy or
ideology.
2.The following exclusion is added:
TERRORISM EXCLUSION
"We"will not pay for loss or damage caused
directly or indirectly by "terrorism",including
action in hindering or defending against an
actual or expected incident of "terrorism".
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.
This exclusion applies only when one or more
of the following are attributed to an incident of
"terrorism":
a.the "terrorism"is carried out by means of
the dispersal or application of radioactive
material,or through the use of a nuclear
weapon or device that involves or
produces a nuclear reaction,nuclear
radiation,or radioactive contamination;or
b.radioactive material is released,and it
appears that one purpose of the
"terrorism"was to release such material;
or
c.the "terrorism"is carried out by means of
the dispersal or application of pathogenic
or poisonous biological or chemical
materials;or
d.pathogenic or poisonous biological or
chemical materials are released,and it
appears that one purpose of the
"terrorism"was to release such materials.
3.When the Terrorism Exclusion set forth by
this endorsement applies due to an incident
of "terrorism"described above under items
2.a.or 2.b.,that Terrorism Exclusion
supersedes the Nuclear Hazard Exclusion in
the Coverage Part to which this endorsement
applies.
4.The following provisions are added.
a.Neither the "terms"of this endorsement
nor the "terms"of any other terrorism
endorsement attached to the Coverage
Part to which this endorsement applies
provide coverage for any loss or damage
that would otherwise be excluded by that
Coverage Part under:
1)exclusions that address war,military
action,or nuclear hazard;or
2)any other exclusion.
AAIS
CL 2650 06 04
Page 2 of 2
b.The absence of any other terrorism
endorsement does not imply coverage for
any loss or damage that would otherwise
be excluded by the Coverage Part to
which this endorsement applies under:
1)exclusions that address war,military
action,or nuclear hazard;or
2)any other exclusion.
CL 2650 06 04
Copyright,American Association of Insurance Services,Inc.,2005
AAIS This endorsement changes the
IM 1264 01 05 Inland Marine Coverage
Page 1 of 1 --PLEASE READ THIS CAREFULLY --
REPORTING CONDITIONS
ADDITIONAL CONDITIONS
Reporting Conditions --The following reporting
conditions apply:
1.Reports Of Value --"You"must send "us"a
written report showing the value of all
property covered under this policy.
2.When Reports Are Due --This report is due
within 30 days after the reporting period
shown on the "schedule of coverages".
3.If Coverage Is Canceled --If "your"
coverage is canceled,"you"must report the
total values up to and including the date of
cancellation.
4.Premium Adjustment --The premium will be
adjusted as of each adjustment period shown
on the "schedule of coverages"and will be
computed using the rate shown on the
"schedule of coverages".
a.Annual Adjustment --When an annual
adjustment period is shown on the
"schedule of coverages","we"will
compare the total computed premium to
the deposit premium shown on the
"schedule of coverages".If the computed
premium is more than the deposit
premium,"you"will pay "us"the
difference.If it is less than the deposit
premium,"we"will pay "you"the
difference,subject to the minimum
premium shown on the "schedule of
coverages".
b.Other Adjustment Period --When any
other premium adjustment period is
shown on the "schedule of coverages",
"we"will apply the computed premium to
the deposit premium until it is exhausted.
"You"will pay "us"all premiums that
exceed the deposit premium.At the end
of the policy period,if the computed
premium is less than the deposit
premium,"we"will pay "you"the
difference subject to the minimum
premium shown on the "schedule of
coverages".
5.Provisions That Affect How Much We
Pay --The following provisions apply to
reports that are submitted and may affect
How Much We Pay:
a.Failure To Submit Reports --If "you"
have failed to submit the required reports
of value as of the time of loss,"we"will
not pay "you"more than the amount
included in "your"last report.If no report
has been submitted,the most "we"will
pay is 90%of the "limit".
b.We Will Not Pay More Than The
Limit --"We"will not pay more than the
applicable "limit"regardless of any
reported value used in computing the
premium.
HOW MUCH WE PAY
The provisions under Coinsurance are deleted.
IM 1264 01 05
AAIS This endorsement changes
IM 2019 08 09 the policy
Page 1 of 1 -- PLEASE READ THIS CAREFULLY --
AMENDATORY ENDORSEMENT
FLORIDA
1.Under Loss Payment, Your Losses is amended to include the following:
If "we" have agreed in writing to the settlement of a claim, "we" will pay for that loss within 20 days
after such settlement is reached.
2.Under Other Conditions, Misrepresentation, Concealment, Or Fraud is deleted and replaced by the
following:
Misrepresentation, Concealment, Or Fraud -- This coverage may be voided if, before or after a
loss:
a.an insured has willfully concealed or misrepresented:
1)any material fact or circumstance concerning this insurance; or
2)an insured's interest herein if material.
This means "we" would not have issued the policy at the premium charged if "we" had known the
facts "you" concealed or misrepresented.
b.there has been fraud or false swearing by an insured with respect to this insurance or the subject
thereof.
3.In all coverage forms except Cold Storage Locker Coverage, Contingent Cargo Coverage, Motor
Truck Cargo Legal Liability Coverage, Riggers' Legal Liability Coverage, and Warehouse Legal
Liability Coverage, under Other Conditions, paragraph b. of Suit Against Us is deleted and replaced
by the following:
b.the suit has been brought within five years after "you" first have knowledge of the loss.
IM 2019 08 09
Copyright, American Association of Insurance Services, Inc., 2009
AAIS This endorsement changes the Builders' Risk Coverage,
IM 2200 08 12 Delay In Completion Coverage, and Installation Floater Coverage
Page 1 of 3 -- PLEASE READ THIS CAREFULLY --
AMENDATORY ENDORSEMENT - FUNGUS EXCLUSION
AND LIMITED COVERAGE DELETED
1.Under Coverage Extensions, the Limited
Fungus Coverage Extension is deleted.
2.The following applies to IM 7050, IM 7052,
and IM 7053, if applicable:
Under Supplemental Coverages, Ordinance
Or Law (Undamaged Parts Of A Building) is
deleted and replaced as follows:
Ordinance Or Law (Undamaged Parts Of
A Building) --
a.Coverage -- When a covered peril
occurs to a covered "building or
structure", "we" pay for the value of
undamaged parts of a covered "building
or structure" that is required to be
demolished as a result of the
enforcement of any ordinance, law, or
decree that:
1)requires the demolition of
undamaged parts of a covered
"building or structure" that is
damaged or destroyed by a covered
peril;
2)regulates the construction or repair
of a "building or structure", or
establishes building, zoning, or land
use requirements at a covered
"jobsite"; and
3)is in force at the time of loss.
b.We Do Not Cover -- "We" do not cover
the costs associated with the
enforcement of any ordinance, law, or
decree that requires "you" or anyone
else to test for, monitor, clean up,
remove, contain, treat, detoxify, or
neutralize or in any way respond to or
assess the effects of "pollutants".
c.Coverage Limitation -- This coverage
is part of and not in addition to the
applicable "limit" for coverage described
under Property Covered.
3.The following applies to IM 7050, IM 7052,
and IM 7053, if applicable:
Under Supplemental Coverages, Ordinance
Or Law (Increased Cost To Repair And Cost
To Demolish/Clear Site) is deleted and
replaced as follows:
Ordinance Or Law (Increased Cost To
Repair And Cost To Demolish/Clear
Site) --
a.Increased Cost To Repair --
1)Coverage -- When a covered peril
occurs to a covered "building or
structure", "we" cover the increased
cost to repair, rebuild, or
reconstruct:
a)damaged portions of a covered
"building or structure"; and
b)undamaged portions of a
covered "building or structure"
whether or not those
undamaged portions need to be
demolished;
as a result of the enforcement of
building, zoning, or land use
ordinance, law, or decree and is in
force at the time when a covered
peril occurs to a covered "building or
structure".
2)If The Building Is Repaired Or
Rebuilt -- If a covered "building or
structure" is repaired or rebuilt, it
must be intended for similar
occupancy as the current property,
unless otherwise required by
building, zoning, or land use
ordinance, law, or decree.
Copyright, American Association of Insurance Services, Inc., 2012
3)Coverage Limitation -- "We" do not
cover the increased cost of
construction until the covered
"building or structure" is actually
repaired or replaced, whether at the
same or another location, and
unless the repairs or replacement
are made as soon as reasonably
possible after the loss, not to
exceed two years. The period for
repair or replacement may be
extended by "us" in writing during
the two year period.
b.Cost To Demolish And Clear Site --
"We" cover the cost to demolish and
clear the site of undamaged parts of the
covered "building or structure" that is
damaged or destroyed by a covered
peril. The demolition must be a result of
the enforcement of a building, zoning, or
land use ordinance, law, or decree that
is in force at the time when a covered
peril occurs to a covered "building or
structure".
c.We Do Not Cover -- "We" do not cover
the costs associated with the
enforcement of any ordinance, law, or
decree:
1)that requires "you" or anyone else to
test for, monitor, clean up, remove,
contain, treat, detoxify, or neutralize
or in any way respond to or assess
the effects of "pollutants"; or
2)"you" were required to comply with
before the covered peril occurred to
a covered "building or structure",
even if the "building or structure"
was undamaged and "you" failed to
comply with the ordinance, law, or
decree.
d.What We Pay --
1)If The Building Is Repaired Or
Replaced At Same Site Or Opt To
Build At Another Location -- If the
covered "building or structure" is
repaired or replaced at the same
location or "you" opt to build at
another location, "we" pay the lesser
of:
a)the amount "you" actually spend
to demolish and clear the site of
undamaged parts of the
covered "building or structure",
plus the actual increased cost to
repair, rebuild, or construct the
property but not for more than a
"building or structure" of the
same height, floor area, and
style at the same location with
materials of like kind and
quality; or
b)$50,000.
2)If The Building Is Repaired Or
Replaced And Required By
Ordinance Or Law To Relocate --
If the covered "building or structure"
is rebuilt at a new location due to an
ordinance or law requirement, "we"
pay the lesser of:
a)the amount "you" actually spend
to demolish and clear the site of
undamaged parts of the
covered "building or structure",
plus the actual increased cost to
construct a "building or
structure" of the same height,
floor area, and style at a new
location with materials of like
kind and quality; or
b)$50,000.
3)If The Building Is Not Repaired Or
Replaced -- If the covered "building
or structure" is not repaired or
replaced, "we" pay the lesser of:
a)the amount "you" actually spend
to demolish and clear the site of
undamaged parts of the
covered "building or structure";
or
b) $50,000.
4.The following applies to IM 7050, IM 7051,
IM 7052, IM 7053, IM 7054, IM 7100,
IM 7101, and IM 7102, if applicable:
Under Perils Excluded, the exclusion for
Fungus is deleted.
Copyright, American Association of Insurance Services, Inc., 2012
AAIS
IM 2200 08 12
Page 2 of 3
5.The following applies to IM 7050, IM 7052,
IM 7053, IM 7100, IM 7101, and IM 7102, if
applicable:
Under Perils Excluded, the exclusion for
Contamination Or Deterioration is deleted
and replaced by the following:
Contamination Or Deterioration -- "We" do
not pay for loss or damage caused by or
resulting from contamination or
deterioration, including but not limited to
corrosion, decay, fungus, mildew, mold, rot,
rust, or any quality, fault, or weakness in
covered property that causes it to damage
or destroy itself.
But if contamination or deterioration results
in a covered peril, "we" do cover the loss or
damage caused by that covered peril.
6.The following applies to IM 7051 and
IM 7054, if applicable:
Under Perils Excluded, the exclusion for
Contamination Or Deterioration is deleted
and replaced by the following:
Contamination Or Deterioration -- "We" do
not pay for loss or damage caused by or
resulting from contamination or
deterioration, including but not limited to
corrosion, decay, fungus, mildew, mold, rot,
rust, or any quality, fault, or weakness in
covered property that causes it to damage
or destroy itself.
7.The following applies only to IM 7054, if
applicable:
Under Other Coverages, Collapse,
paragraph 5., Limited Fungus Coverage
Does Not Increase/Decrease Coverage is
deleted.
8.The following applies to IM 7050, IM 7051,
IM 7052, IM 7053, IM 7054, IM 7100,
IM 7101, and IM 7102, if applicable:
Under Other Conditions, Restoration Of
Limits is deleted and replaced as follows:
Restoration Of Limits -- A loss "we" pay
under this coverage does not reduce the
applicable "limits".
9.The following applies to IM 7050, IM 7051,
IM 7052, IM 7053, IM 7054, IM 7100,
IM 7101, and IM 7102, if applicable:
Under Definitions, the definition of "fungus"
is deleted.
IM 2200 08 12
Copyright, American Association of Insurance Services, Inc., 2012
AAIS
IM 2200 08 12
Page 3 of 3
Copyright,American Association of Insurance Services,Inc.,2004
AAIS
IM 7000 04 04
Page 1 of 13
CONTRACTORS'EQUIPMENT COVERAGE
AGREEMENT
In return for "your"payment of the required
premium,"we"provide the coverage described
herein subject to all the "terms"of the
Contractors'Equipment Coverage.This coverage
is also subject to the "schedule of coverages"and
additional policy conditions relating to assignment
or transfer of rights or duties,cancellation,
changes or modifications,inspections,and
examination of books and records.
Endorsements and schedules may also apply.
They are identified on the "schedule of
coverages".
Refer to Definitions for words and phrases that
have special meaning.These words and phrases
are shown in quotation marks or bold type.
DEFINITIONS
1.The words "you"and "your"mean the
persons or organizations named as the
insured on the declarations.
2.The words "we","us",and "our"mean the
company providing this coverage.
3."Contractors’equipment"means machinery,
equipment,and tools of a mobile nature that
"you"use in "your"contracting,installation,
erection,repair,or moving operations or
projects.
"Contractors’equipment"also means:
a.self-propelled vehicles designed and
used primarily to carry mounted
equipment;or
b.vehicles designed for highway use that
are unlicensed and not operated on
public roads.
4."Equipment schedule"means a schedule of
"contractors’equipment"that is attached to
this policy and that describes each piece of
covered equipment.
5."Jobsite"means any location,project,or work
site where "you"are in the process of
construction,installation,erection,repair,or
moving.
6."Limit"means the amount of coverage that
applies.
7."Pollutant"means:
a.any solid,liquid,gaseous,thermal,or
radioactive irritant or contaminant,
including acids,alkalis,chemicals,
fumes,smoke,soot,vapor,and waste.
Waste includes materials to be recycled,
reclaimed,or reconditioned,as well as
disposed of;and
b.electrical or magnetic emissions,whether
visible or invisible,and sound emissions.
8."Schedule of coverages"means:
a.all pages labeled schedule of coverages
or schedules which pertain to this
coverage;and
b.declarations or supplemental
declarations which pertain to this
coverage.
9."Sinkhole collapse"means the sudden
settlement or collapse of earth supporting the
covered property into subterranean voids
created by the action of water on a limestone
or similar rock formation.It does not include
the value of the land or the cost of filling
sinkholes.
AAIS
IM 7000 04 04
Page 2 of 13
Copyright,American Association of Insurance Services,Inc.,2004
10."Specified perils"means aircraft;civil
commotion;explosion;falling objects;fire;
hail;leakage from fire extinguishing
equipment;lightning;riot;"sinkhole collapse";
smoke;sonic boom;vandalism;vehicles;
"volcanic action";water damage;weight of
ice,snow,or sleet;and windstorm.
Falling objects does not include loss to:
a.personal property in the open;or
b.the interior of buildings or structures or to
personal property inside buildings or
structures unless the exterior of the roofs
or walls are first damaged by a falling
object.
Water damage means the sudden or
accidental discharge or leakage of water or
steam as a direct result of breaking or
cracking of a part of the system or appliance
containing the water or steam.
11."Terms"means all provisions,limitations,
exclusions,conditions,and definitions that
apply.
12."Volcanic action"means airborne volcanic
blast or airborne shock waves;ash,dust,or
particulate matter;or lava flow.
Volcanic action does not include the cost to
remove ash,dust,or particulate matter that
does not cause direct physical loss to the
covered property.
PROPERTY COVERED
"We"cover the following property unless the
property is excluded or subject to limitations.
1.Scheduled Equipment --
a.Coverage --"We"cover direct physical
loss caused by a covered peril to:
1)"your""contractors'equipment";and
2)"contractors'equipment"of others in
"your"care,custody,or control.
b.Coverage Limitation --"We"only cover
"your""contractors'equipment"and
"contractors'equipment"of others:
1)that are described on the "equipment
schedule";and
2)when Scheduled Equipment is
indicated on the "schedule of
coverages".
2.Schedule On File --
a.Coverage --"We"cover direct physical
loss caused by a covered peril to:
1)"your""contractors'equipment";and
2)"contractors'equipment"of others in
"your"care,custody,or control.
b.Coverage Limitation --"We"only cover
"your""contractors'equipment"and
"contractors'equipment"of others:
1)that are listed in a schedule which
"you"must submit to "us"and "we"
keep on file,the schedule must
contain a description of each item to
be covered and a "limit"for each
item;and
2)when Schedule on File is indicated
on the "schedule of coverages".
PROPERTY NOT COVERED
1.Aircraft Or Watercraft --"We"do not cover
aircraft or watercraft.
2.Contraband --"We"do not cover contraband
or property in the course of illegal
transportation or trade.
3.Leased Or Rented Property --"We"do not
cover property that "you"lease or rent to
others.
AAIS
IM 7000 04 04
Page 3 of 13
Copyright,American Association of Insurance Services,Inc.,2004
4.Loaned Property --"We"do not cover
property that "you"loan to others.
5.Underground Mining Operations --"We"
do not cover property while stored or
operated underground in connection with any
mining operations.
6.Vehicles --"We"do not cover automobiles,
motor trucks,tractors,trailers,and similar
conveyances designed for highway use and
used for over the road transportation of
people or cargo.However,this does not
include:
a.self-propelled vehicles designed and
used primarily to carry mounted
equipment;or
b.vehicles designed for highway use that
are unlicensed and not operated on
public roads.
7.Waterborne Property --"We"do not cover
property while waterborne except while in
transit in the custody of a carrier for hire.
COVERAGE EXTENSIONS
Provisions That Apply To Coverage
Extensions --The following Coverage
Extensions indicate an applicable "limit".This
"limit"may also be shown on the "schedule of
coverages".
If a different "limit"is indicated on the "schedule
of coverages",that "limit"will apply instead of the
"limit"shown below.
However,if no "limit"is indicated for a Coverage
Extension,coverage is provided up to the full
"limit"for the applicable covered property unless
a different "limit"is indicated on the "schedule of
coverages".
Unless otherwise indicated,the coverages
provided below are part of and not in addition to
the applicable "limit"for coverage described
under Property Covered.
The "limit"provided under a Coverage Extension
cannot be combined or added to the "limit"for
any other Coverage Extension or Supplemental
Coverage including a Coverage Extension or
Supplemental Coverage that is added to this
policy by endorsement.
If coinsurance provisions are part of this policy,
the following coverage extensions are not subject
to and not considered in applying coinsurance
conditions.
Debris Removal --
1.Coverage --"We"pay the cost to remove the
debris of covered property that is caused by a
covered peril.
2.We Do Not Cover --This coverage does not
include costs to:
a.extract "pollutants"from land or water;or
b.remove,restore,or replace polluted land
or water.
3.Limit --"We"do not pay any more under this
coverage than 25%of the amount "we"pay
for the direct physical loss."We"will not pay
more for loss to property and debris removal
combined than the "limit"for the damaged
property.
4.Additional Limit --"We"pay up to an
additional $5,000 for debris removal expense
when the debris removal expense exceeds
25%of the amount "we"pay for direct
physical loss or when the loss to property and
debris removal combined exceeds the "limit"
for the damaged property.
5.You Must Report Your Expenses --"We"
do not pay any expenses unless they are
reported to "us"in writing within 180 days
from the date of direct physical loss to
covered property.
AAIS
IM 7000 04 04
Page 4 of 13
Copyright,American Association of Insurance Services,Inc.,2004
SUPPLEMENTAL COVERAGES
Provisions That Apply To Supplemental
Coverages --The following Supplemental
Coverages indicate an applicable "limit".This
"limit"may also be shown on the "schedule of
coverages".
If a different "limit"is indicated on the "schedule
of coverages",that "limit"will apply instead of the
"limit"shown below.
However,if no "limit"is indicated for a
Supplemental Coverage,coverage is provided up
to the full "limit"for the applicable covered
property unless a different "limit"is indicated on
the "schedule of coverages".
Unless otherwise indicated,a "limit"for a
Supplemental Coverage provided below is
separate from,and not part of,the applicable
"limit"for coverage described under Property
Covered.
The "limit"available for coverage described
under a Supplemental Coverage:
a.is the only "limit"available for the described
coverage;and
b.is not the sum of the "limit"indicated for a
Supplemental Coverage and the "limit"for
coverage described under Property Covered.
The "limit"provided under a Supplemental
Coverage cannot be combined or added to the
"limit"for any other Supplemental Coverage or
Coverage Extension including a Supplemental
Coverage or Coverage Extension that is added to
this policy by endorsement.
If coinsurance provisions are part of this policy,
the following supplemental coverages are not
subject to and not considered in applying
coinsurance conditions.
1.Employee Tools --
a.Coverage --"We"cover direct physical
loss caused by a covered peril to tools
owned by "your"employees.
b.Coverage Limitation --"We"only cover
tools owned by "your"employees while at
a:
1)premises that "you"own or operate;
or
2)"jobsite".
c.Limit --The most "we"pay in any one
occurrence for loss to employee tools is
$5,000.
2.Equipment Leased Or Rented From
Others --
a.Coverage --"We"cover direct physical
loss caused by a covered peril to
"contractors'equipment"that "you"have
leased or rented from others.
b.Limit --The most "we"pay in any one
occurrence for equipment leased or
rented from others is $25,000.
3.Newly Purchased Property --
a.Coverage --"We"cover direct physical
loss caused by a covered peril to
additional "contractors’equipment"that
"you"purchase during the policy period.
b.Limit --The most that "we"pay for any
loss under this supplemental coverage is
the least of the:
1)actual cash value of the covered
property;or
2)"limit"for newly purchased property
indicated on the "schedule of
coverages".If no "limit"is indicated,
then 30%of the Catastrophe Limit
indicated on the "schedule of
coverages"applies to this coverage.
AAIS
IM 7000 04 04
Page 5 of 13
Copyright,American Association of Insurance Services,Inc.,2004
c.Time Limitation --"We"extend
coverage to the additional "contractors’
equipment"that "you"purchase for up to
60 days.
This supplemental coverage will end
when any of the following first occur:
1)this policy expires;
2)60 days after "you"obtain the
additional "contractors’equipment";
or
3)"you"report the additional
"contractors’equipment"to "us".
d.Additional Premium --"You"must pay
any additional premium due from the
date "you"purchase the additional
"contractors’equipment".
4.Pollutant Cleanup And Removal --
a.Coverage --"We"pay "your"expense to
extract "pollutants"from land or water if
the discharge,dispersal,seepage,
migration,release,or escape of the
"pollutants"is caused by a covered peril
that occurs during the policy period.
b.Time Limitation --The expenses to
extract "pollutants"are paid only if they
are reported to "us"in writing within 180
days from the date the covered peril
occurs.
c.We Do Not Cover --"We"do not pay the
cost of testing,evaluating,observing,or
recording the existence,level,or effects
of "pollutants".
However,"we"pay the cost of testing
which is necessary for the extraction of
"pollutants"from land or water.
d.Limit --The most "we"pay for each
location is $25,000 for the sum of all such
expenses arising out of a covered peril
occurring during each separate 12-month
period of this policy.
5.Rental Reimbursement --
a.Coverage --In the event of a direct
physical loss by a covered peril to "your"
"contractors’equipment","we"reimburse
"you"for "your"expense to rent similar
equipment while "your"equipment is
inoperable.
The deductible amount indicated on the
"schedule of coverages"does not apply
to a loss covered under this
supplemental coverage.
b.Waiting Period --"We"will not
reimburse "you"for the rental of
equipment until after the first 72-hours
(unless otherwise indicated on the
"schedule of coverages")following the
direct physical loss to "your""contractors’
equipment"caused by a covered peril.
c.Incurred Rental Expenses --After the
waiting period has passed,"we"will only
reimburse "you"for the rental expenses
that "you"actually incur.
d.Coverage After Expiration Date --"We"
will continue to reimburse "you"for the
rental of equipment after the expiration
date of this coverage,provided the loss
occurred before the expiration date.
e.Coverage Limitations --"We"will not
reimburse "you":
1)if "you"can continue or resume
"your"operations with similar
equipment that is available to "you"at
no additional expense to "you";or
2)for the rental expense of any
equipment unless "you"make every
reasonable effort to repair,replace,
or rebuild the inoperable equipment
after the loss by a covered peril
occurs.
f.Limit --The most "we"reimburse "you"in
any one occurrence for rental expenses
is $5,000.
AAIS
IM 7000 04 04
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6.Spare Parts And Fuel --
a.Coverage --"We"cover direct physical
loss caused by a covered peril to:
1)spare parts and accessories for
"contractors’equipment";and
2)fluids for vehicles and "contractors’
equipment";fluids include gasoline,
oil,and hydraulic fluid.
b.Limit --The most "we"pay in any one
occurrence for loss to spare parts and
accessories is $5,000.
PERILS COVERED
"We"cover risks of direct physical loss unless the
loss is limited or caused by a peril that is
excluded.
PERILS EXCLUDED
1."We"do not pay for loss or damage caused
directly or indirectly by one or more of the
following excluded causes or events.Such
loss or damage is excluded regardless of
other causes or events that contribute to or
aggravate the loss,whether such causes or
events act to produce the loss before,at the
same time as,or after the excluded causes
or events.
a.Civil Authority --"We"do not pay for
loss caused by order of any civil
authority,including seizure,confiscation,
destruction,or quarantine of property.
"We"do cover loss resulting from acts of
destruction by the civil authority to
prevent the spread of fire,unless the fire
is caused by a peril excluded under this
coverage.
b.Nuclear Hazard --"We"do not pay for
loss caused by or resulting from a
nuclear reaction,nuclear radiation,or
radioactive contamination (whether
controlled or uncontrolled;whether
caused by natural,accidental,or artificial
means).Loss caused by nuclear hazard
is not considered loss caused by fire,
explosion,or smoke.Direct loss by fire
resulting from the nuclear hazard is
covered.
c.War And Military Action --"We"do not
pay for loss caused by:
1)war,including undeclared war or civil
war;or
2)a warlike action by a military force,
including action taken to prevent or
defend against an actual or expected
attack,by any government,
sovereign,or other authority using
military personnel or other agents;or
3)insurrection,rebellion,revolution,or
unlawful seizure of power including
action taken by governmental
authority to prevent or defend against
any of these.
With regard to any action that comes
within the "terms"of this exclusion and
involves nuclear reaction,nuclear
radiation,or radioactive contamination,
this War and Military Action Exclusion will
apply in place of the Nuclear Hazard
Exclusion.
2."We"do not pay for loss or damage that is
caused by or results from one or more of the
following:
a.Contamination or Deterioration --"We"
do not pay for loss caused by
contamination or deterioration including
corrosion,decay,fungus,mildew,mold,
rot,rust,or any quality,fault,or
weakness in the covered property that
causes it to damage or destroy itself.
But if contamination or deterioration
results in a covered peril,"we"do cover
the loss or damage caused by that
covered peril.
AAIS
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b.Criminal,Fraudulent,Dishonest Or
Illegal Acts --"We"do not pay for loss
caused by or resulting from criminal,
fraudulent,dishonest,or illegal acts
committed alone or in collusion with
another by:
1)"you";
2)others who have an interest in the
property;
3)others to whom "you"entrust the
property;
4)"your"partners,officers,directors,
trustees,joint venturers,or "your"
members or managers if "you"are a
limited liability company;or
5)the employees or agents of 1),2),3),
or 4)above,whether or not they are
at work.
This exclusion does not apply to acts of
destruction by "your"employees,but "we"
do not pay for theft by employees.
This exclusion does not apply to covered
property in the custody of a carrier for
hire.
c.Loss Of Use --"We"do not pay for loss
caused by or resulting from loss of use,
delay,or loss of market.
d.Mechanical Breakdown --"We"do not
pay for loss caused by any mechanical,
structural,or electrical breakdown or
malfunction including a breakdown or
malfunction resulting from a structural,
mechanical,or reconditioning process.
But if a mechanical,structural,or
electrical breakdown or malfunction
results in a covered peril,"we"do cover
the loss or damage caused by that
covered peril.
e.Missing Property --"We"do not pay for
missing property where the only proof of
loss is unexplained or mysterious
disappearance of covered property,or
shortage of property discovered on taking
inventory,or any other instance where
there is no physical evidence to show
what happened to the covered property.
This exclusion does not apply to covered
property in the custody of a carrier for
hire.
f.Pollutants --"We"do not pay for loss
caused by or resulting from release,
discharge,seepage,migration,dispersal,
or escape of "pollutants":
1)unless the release,discharge,
seepage,migration,dispersal,or
escape is caused by a "specified
peril";or
2)except as specifically provided under
the Supplemental Coverages -
Pollutant Cleanup and Removal.
"We"do cover any resulting loss caused
by a "specified peril".
g.Temperature/Humidity --"We"do not
pay for loss caused by dryness,
dampness,humidity,or changes in or
extremes of temperature.
But if dryness,dampness,humidity,or
changes in or extremes of temperature
results in a covered peril,"we"do cover
the loss or damage caused by that
covered peril.
h.Voluntary Parting --"We"do not pay for
loss caused by or resulting from voluntary
parting with title to or possession of any
property because of any fraudulent
scheme,trick,or false pretense.
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IM 7000 04 04
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i.Wear And Tear --"We"do not pay for
loss caused by wear and tear,marring,or
scratching.
But if wear and tear,marring,or
scratching results in a covered peril,"we"
do cover the loss or damage caused by
that covered peril.
WHAT MUST BE DONE
IN CASE OF LOSS
1.Notice --In case of a loss,"you"must:
a.give "us"or "our"agent prompt notice
including a description of the property
involved ("we"may request written
notice);and
b.give notice to the police when the act that
causes the loss is a crime.
2.You Must Protect Property --"You"must
take all reasonable steps to protect covered
property at and after an insured loss to avoid
further loss.
a.Payment of Reasonable Costs --"We"
do pay the reasonable costs incurred by
"you"for necessary repairs or emergency
measures performed solely to protect
covered property from further damage by
a peril insured against if a peril insured
against has already caused a loss to
covered property."You"must keep an
accurate record of such costs."Our"
payment of reasonable costs does not
increase the "limit".
b.We Do Not Pay --"We"do not pay for
such repairs or emergency measures
performed on property which has not
been damaged by a peril insured against.
3.Proof Of Loss --"You"must send "us",
within 60 days after "our"request,a signed,
sworn proof of loss.This must include the
following information:
a.the time,place,and circumstances of the
loss;
b.other policies of insurance that may cover
the loss;
c."your"interest and the interests of all
others in the property involved,including
all mortgages and liens;
d.changes in title of the covered property
during the policy period;and
e.estimates,specifications,inventories,
and other reasonable information that
"we"may require to settle the loss.
4.Examination --"You"must submit to
examination under oath in matters connected
with the loss as often as "we"reasonably
request and give "us"sworn statements of
the answers.If more than one person is
examined,"we"have the right to examine
and receive statements separately and not in
the presence of others.
5.Records --"You"must produce records,
including tax returns and bank microfilms of
all canceled checks relating to value,loss,
and expense and permit copies and extracts
to be made of them as often as "we"
reasonably request.
6.Damaged Property --"You"must exhibit the
damaged and undamaged property as often
as "we"reasonably request and allow "us"to
inspect or take samples of the property.
7.Volunteer Payments --"You"must not,
except at "your"own expense,voluntarily
make any payments,assume any obligations,
pay or offer any rewards,or incur any other
expenses except as respects protecting
property from further damage.
8.Abandonment --"You"may not abandon the
property to "us"without "our"written consent.
9.Cooperation --"You"must cooperate with
"us"in performing all acts required by this
policy.
AAIS
IM 7000 04 04
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VALUATION
1.Actual Cash Value --The value of covered
property will be based on the actual cash
value at the time of the loss (with a deduction
for depreciation)unless replacement cost is
indicated on the "schedule of coverages".
2.Replacement Cost --The value of covered
property will be based on the replacement
cost without any deduction for depreciation
unless Actual Cash Value is indicated on the
"schedule of coverages".
a.Replacement Cost Limitation --The
replacement cost is limited to the cost of
repair or replacement with similar
materials and used for the same
purpose.The payment will not exceed
the amount "you"spend to repair or
replace the damaged or destroyed
property.
b.Replacement Cost Does Not Apply
Until Repair Or Replacement --
Replacement cost valuation does not
apply until the damaged or destroyed
property is repaired or replaced.
c.Time Limitation --"You"may make a
claim for actual cash value before repair
or replacement takes place,and later for
the replacement cost if "you"notify "us"of
"your"intent within 180 days after the
loss.
3.Pair Or Set --The value of a lost or damaged
article which is part of a pair or set is based
on a reasonable proportion of the value of the
entire pair or set.The loss is not considered a
total loss of the pair or set.
4.Loss To Parts --The value of a lost or
damaged part of an item that consists of
several parts when it is complete is based on
the value of only the lost or damaged part or
the cost to repair or replace it.
HOW MUCH WE PAY
1.Insurable Interest --"We"do not cover more
than "your"insurable interest in any property.
2.Flat Deductible --"We"pay only that part of
"your"loss over the deductible amount
indicated on the "schedule of coverages"in
any one occurrence unless Percentage
Deductible is indicated on the "schedule of
coverages".
3.Percentage Deductible --When a
percentage deductible is indicated on the
"schedule of coverages","we"pay only that
part of "your"loss over the deductible amount
as determined below.
a.Determining The Deductible Amount --
The deductible amount is determined by
applying the percentage indicated on the
"schedule of coverages"to the value of
the covered property that is involved in
the loss.The value is determined by the
provisions described under the Valuation
section of this policy.
b.Two Or More Items --If a loss involves
two or more pieces of equipment,the
percentage indicated on the "schedule of
coverages"will apply only to the covered
property with the highest value.
c.Minimum and Maximum Deductible --
The percentage deductible will not
exceed the Maximum Deductible amount
and will not be less than the Minimum
Deductible amount indicated on the
"schedule of coverages".
4.Loss Settlement Terms --Subject to
paragraphs 1.,2.,3.,5.,6.,and 7.under How
Much We Pay,"we"pay the lesser of:
a.the amount determined under Valuation;
AAIS
IM 7000 04 04
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b.the cost to repair,replace,or rebuild the
property with material of like kind and
quality to the extent practicable;or
c.the "limit"that applies to the covered
property.However,the most "we"pay for
loss in any one occurrence is the
Catastrophe Limit indicated on the
"schedule of coverages".
5.Coinsurance --
a.When Coinsurance Applies --"We"
only pay a part of the loss if the "limit"is
less than the percentage of the value of
the covered property that is indicated on
the "schedule of coverages".
b.How We Determine Our Part Of The
Loss --"Our"part of the loss is
determined using the following steps:
1)multiply the percent indicated on the
"schedule of coverages"by the value
of the covered property at the time of
loss;
2)divide the "limit"for covered property
by the result determined in b.1)
above;
3)multiply the total amount of loss,after
the application of any deductible,by
the result determined in b.2)above.
The most "we"pay is the amount
determined in b.3)above or the "limit",
whichever is less."We"do not pay any
remaining part of the loss.
c.If There Is More Than One Limit --If
there is more than one "limit"indicated on
the "schedule of coverages"for this
coverage part,this procedure applies
separately to each "limit".
d.If There Is Only One Limit --If there is
only one "limit"indicated on the "schedule
of coverages"for this coverage,this
procedure applies to the total of all
covered property to which the "limit"
applies.
e.When Coinsurance Does Not Apply --
Conditions for coinsurance do not apply
unless a coinsurance percentage is
indicated on the "schedule of coverages".
6.Insurance Under More Than One
Coverage --If more than one coverage of
this policy insures the same loss,"we"pay no
more than the actual claim,loss,or damage
sustained.
7.Insurance Under More Than One Policy --
a.Proportional Share --"You"may have
another policy subject to the same
"terms"as this policy.If "you"do,"we"will
pay "our"share of the covered loss."Our"
share is the proportion that the applicable
"limit"under this policy bears to the "limit"
of all policies covering on the same
basis.
b.Excess Amount --If there is another
policy covering the same loss,other than
that described above,"we"pay only for
the amount of covered loss in excess of
the amount due from that other policy,
whether "you"can collect on it or not.But
"we"do not pay more than the applicable
"limit".
LOSS PAYMENT
1.Loss Payment Options --
a.Our Options --In the event of loss
covered by this coverage form,"we"have
the following options:
1)pay the value of the lost or damaged
property;
2)pay the cost of repairing or replacing
the lost or damaged property;
AAIS
IM 7000 04 04
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3)rebuild,repair,or replace the
property with other property of
equivalent kind and quality,to the
extent practicable,within a
reasonable time;or
4)take all or any part of the property at
the agreed or appraised value.
b.Notice Of Our Intent To Rebuild,
Repair,Or Replace --"We"must give
"you"notice of "our"intent to rebuild,
repair,or replace within 30 days after
receipt of a duly executed proof of loss.
2.Your Losses --
a.Adjustment And Payment Of Loss --
"We"adjust all losses with "you".
Payment will be made to "you"unless
another loss payee is named in the
policy.
b.Conditions For Payment Of Loss --An
insured loss will be payable 30 days after:
1)a satisfactory proof of loss is
received,and
2)the amount of the loss has been
established either by written
agreement with "you"or the filing of
an appraisal award with "us".
3.Property Of Others --
a.Adjustment And Payment of Loss To
Property of Others --Losses to property
of others may be adjusted with and paid
to:
1)"you"on behalf of the owner;or
2)the owner.
b.We Do Not Have To Pay You If We Pay
The Owner --If "we"pay the owner,"we"
do not have to pay "you"."We"may also
choose to defend any suits brought by
the owners at "our"expense.
REPORTING CONDITIONS
Equipment Leased Or Rented From Others --
If indicated on the "schedule of coverages",the
following reporting conditions apply.
1.Reports --
a.You Will Report To Us --Within 30
days after the end of the policy period,
"you"will report to "us"the total amount
of "your"expenditures for "contractors’
equipment"that "you"lease or rent from
others.
b.Cancellation --If this policy is canceled,
"you"will report the total amount of
expenditures up to and including the date
of cancellation.
2.Premium Computation And Adjustment --
a.The premium will be adjusted at the end
of the policy period.The total computed
premium will be determined by
multiplying "your"total equipment
expenditures by the reporting rate
indicated on the "schedule of coverages"
for Equipment Leased or Rented From
Others.
b."We"will compare the total computed
premium to the deposit premium.If it is
more than the deposit premium,"you"
will pay "us"the difference.If it is less
than the deposit premium,"we"will pay
"you"the difference subject to the
minimum premium indicated on the
"schedule of coverages".
3.Provisions That Affect How Much We
Pay --The following provisions apply to
reports that are submitted and may affect
How Much We Pay:
a.Failure To Submit Reports --If "you"
have failed to submit the required reports
or no report has been submitted,the
most "we"will pay is 90%of the "limit".
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IM 7000 04 04
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b.Reported Values Are Less Than The
Full Value --If "your"last report before a
loss shows less than the actual value of
"your"expenditures for "contractors’
equipment"that "you"lease or rent from
others,"we"will only pay a part of the
loss."We"will not pay a greater portion
of the loss,prior to the application of the
deductible,than the total expenditures
"you"reported divided by "your"actual
expenditures for "contractors’equipment"
that "you"lease or rent from others
during the reporting period.
c.We Will Not Pay More Than The
Limit --"We"will not pay more than the
applicable "limit"regardless of any
reported value used in computing the
premium.
OTHER CONDITIONS
1.Appraisal --If "you"and "we"do not agree
on the amount of the loss or the value of
covered property,either party may demand
that these amounts be determined by
appraisal.
If either makes a written demand for
appraisal,each will select a competent,
independent appraiser and notify the other of
the appraiser's identity within 20 days of
receipt of the written demand.The two
appraisers will then select a competent,
impartial umpire.If the two appraisers are
unable to agree upon an umpire within 15
days,"you"or "we"can ask a judge of a court
of record in the state where the property is
located to select an umpire.
The appraisers will then determine and state
separately the amount of each loss.
The appraisers will also determine the value
of covered property items at the time of the
loss,if requested.
If the appraisers submit a written report of
any agreement to "us",the amount agreed
upon will be the amount of the loss.If the
appraisers fail to agree within a reasonable
time,they will submit only their differences to
the umpire.Written agreement so itemized
and signed by any two of these three,sets
the amount of the loss.
Each appraiser will be paid by the party
selecting that appraiser.Other expenses of
the appraisal and the compensation of the
umpire will be paid equally by "you"and "us".
2.Benefit to Others --Insurance under this
coverage will not directly or indirectly benefit
anyone having custody of "your"property.
3.Conformity With Statute --When a
condition of this coverage is in conflict with an
applicable law,that condition is amended to
conform to that law.
4.Estates --This provision applies only if the
insured is an individual.
a.Your Death --On "your"death,"we"
cover the following as an insured:
1)the person who has custody of "your"
property until a legal representative is
qualified and appointed;or
2)"your"legal representative.
This person or organization is an insured
only with respect to property covered by
this coverage.
b.Policy Period Is Not Extended --This
coverage does not extend past the policy
period indicated on the declarations.
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IM 7000 04 04
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5.Misrepresentation,Concealment,Or
Fraud --This coverage is void as to "you"
and any other insured if,before or after a
loss:
a."you"or any other insured have willfully
concealed or misrepresented:
1)a material fact or circumstance that
relates to this insurance or the
subject thereof;or
2)"your"interest herein.
b.there has been fraud or false swearing by
"you"or any other insured with regard to
a matter that relates to this insurance or
the subject thereof.
6.Policy Period --"We"pay for a covered loss
that occurs during the policy period.
7.Recoveries --If "we"pay "you"for the loss
and lost or damaged property is recovered,or
payment is made by those responsible for the
loss,the following provisions apply:
a."you"must notify "us"promptly if "you"
recover property or receive payment;
b."we"must notify "you"promptly if "we"
recover property or receive payment;
c.any recovery expenses incurred by either
are reimbursed first;
d."you"may keep the recovered property
but "you"must refund to "us"the amount
of the claim paid or any lesser amount to
which "we"agree;and
e.if the claim paid is less than the agreed
loss due to a deductible or other limiting
"terms"of this policy,any recovery will be
pro rated between "you"and "us"based
on "our"respective interest in the loss.
8.Restoration Of Limits --A loss "we"pay
under this coverage does not reduce the
applicable "limit"unless it is a total loss to a
scheduled item.In the event of a total loss to
a scheduled item,"we"refund the unearned
premium on that item.
9.Subrogation --If "we"pay for a loss,"we"
may require "you"to assign to "us""your"
right of recovery against others."You"must
do all that is necessary to secure "our"rights.
"We"do not pay for a loss if "you"impair this
right to recover.
"You"may waive "your"right to recover from
others in writing before a loss occurs.
10.Suit Against Us --No one may bring a legal
action against "us"under this coverage
unless:
a.all of the "terms"of this coverage have
been complied with;and
b.the suit has been brought within two
years after "you"first have knowledge of
the loss.
If any applicable law makes this limitation
invalid,then suit must begin within the
shortest period permitted by law.
11.Territorial Limits --"We"cover property
while it is in the United States of America,its
territories and possessions,Canada,and
Puerto Rico.
IM 7000 04 04
(The entries required to complete this schedule
will be shown below or on the "schedule of coverages".)
PROPERTY COVERED
(check one)
[ ]Scheduled Equipment (Refer to Equipment Schedule)
[ ]Schedule On File
"Limit"
Catastrophe Limit -- The most "we" pay
for loss in any one occurrence is:$
COVERAGE EXTENSIONS
Additional Debris Removal Expenses $
SUPPLEMENTAL COVERAGES
Employee Tools $
Equipment Leased or Rented From Others $
Newly Purchased Equipment (check one)
[ ]Percentage of Catastrophe Limit %
[ ]Dollar Limit $
Pollutant Cleanup and Removal $
Rental Reimbursement
-- Reimbursement Limit $
-- Waiting Period
Spare Parts and Fuel $
AAIS POLICY NUMBER: MKLM3IM0049643
IM 7005 01 12
Page 1 of 2
SCHEDULE OF COVERAGES
CONTRACTORS’ EQUIPMENT
Copyright, American Association of Insurance Services, Inc., 2012
X
1,129,572*
5,000
5,000
25,000
5,000
72 Hours
5,000
: We cover property described individually on the list: 1) Dated 1/20/2017; 2) Accepted by us;
and 3) On file at Markel Global Insurance; 3650 Mansell Rd, Suite 440, Alpharetta, GA 30022.
COINSURANCE (check one)
[ ]80%[ ]90%[ ] 100%[ ] Other %
REPORTING CONDITIONS (check if applicable)
[ ]Equipment Leased or Rented From Others
-- Reporting Rate $
-- Deposit Premium $
-- Minimum Premium $
VALUATION (check if applicable)
[ ]Indicated on Equipment Schedule
DEDUCTIBLE (check one)
[ ]Flat Deductible Amount $
[ ]Percentage Deductible %
Maximum Deductible Amount $
Minimum Deductible Amount $
ADDITIONAL INFORMATION
IM 7005 01 12
AAIS
IM 7005 01 12
Page 2 of 2
Copyright, American Association of Insurance Services, Inc., 2012
X
X X
X 1,000**
*Includes: Golf Carts $273,600 (73); Personal Property of
Others $250,000; All other Equipment $605,972.
**$1,000 Deductible; except 5% of the total insurable value
of the item(s) involved in the loss subject to a minimum of
$25,000 for Wind/Hail.
[ ]Actual Cash Value [ ]Replacement Cost - On Equipment 5 years old or newer
AAIS This endorsement changes the
IM 7020 04 04 Contractors'Equipment Coverage
Page 1 of 1 --PLEASE READ THIS CAREFULLY --
REPLACEMENT COST ENDORSEMENT
VALUATION
The Actual Cash Value provision under Valuation is replaced by the following:
Replacement Cost --The value of covered property will be based on the
replacement cost at the time of the loss without any deduction for depreciation.
1.Replacement Cost Limitation --The replacement cost is limited to the cost
of repair or replacement with similar equipment and used for the same
purpose.The payment will not exceed the amount "you"spend to repair or
replace the damaged or destroyed property.
2.Replacement Cost Does Not Apply Until Repair Or Replacement --
Replacement cost valuation does not apply until the damaged or destroyed
property is repaired or replaced.
3.Time Limitation --"You"may make a claim for actual cash value before
repair or replacement takes place,and later for the replacement cost if "you"
notify "us"of "your"intent within 180 days after the loss.
IM 7020 04 04
Copyright,American Association of Insurance Services,Inc.,2004
THIS APPLIES TO EQUIPMENT 5 YEARS OLD AND NEWER.
Copyright,American Association of Insurance Services,Inc.,2002
AAIS
IM 7201 10 02
Page 1 of 24
COMPUTER COVERAGE
AGREEMENT
In return for "your"payment of the required
premium,"we"provide the coverage described
herein subject to all the "terms"of the Computer
Coverage.This coverage is also subject to the
"schedule of coverages"and additional policy
conditions relating to assignment or transfer of
rights or duties,cancellation,changes or
modifications,inspections,and examination of
books and records.
Endorsements and schedules may also apply.
They are identified on the "schedule of
coverages".
Refer to Definitions for words and phrases that
have special meaning.These words and phrases
are shown in quotation marks or bold type.
DEFINITIONS
1.The words "you"and "your"mean the
persons or organizations named as the
insured on the "schedule of coverages".
2.The words "we","us",and "our"mean the
company providing this coverage.
3."Business"means the usual business
operations occurring at a premises described
on the "schedule of coverages".
4."Computer hacking"means an unauthorized
intrusion:
a.by an individual or group of individuals,
whether employed by "you"or not,into
"hardware","software",or a computer
network;and
b.that results in but is not limited to:
1)deletion,destruction,generation,or
modification of "software";
2)alteration,contamination,corruption,
degradation,or destruction of the
integrity,quality,or performance of
"software";
3)observation,scanning,or copying of
"data records","programs and
applications",and "proprietary
programs";
4)damage,destruction,inadequacy,
malfunction,degradation,or
corruption of any "hardware"or
"media"used with "hardware";or
5)denial of access to or denial of
services from "your""hardware"or
"your"computer network.
5."Computer virus"means the introduction of
any malicious,self-replicating electronic data
processing code or other code:
a.into "hardware"or "software";and
b.that is intended to result in,but is not
limited to:
1)deletion,destruction,generation,or
modification of "software";
2)alteration,contamination,corruption,
degradation,or destruction of the
integrity,quality,or performance of
"software";
3)damage,destruction,inadequacy,
malfunction,degradation,or
corruption of any "hardware"or
"media"used with "hardware";or
4)denial of access to or denial of
services from "your""hardware"or
"your"computer network.
6."Data records"means files,documents,and
information in an electronic format and that
are stored on "media".
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7."Electrical disturbance"means electrical or
magnetic damage,disturbance of electronic
recordings,or erasure of electronic
recordings.
8."Flood"means flood,surface water,waves,
tidal water,or the overflow of a body of water,
all whether driven by wind or not.This
includes spray that results from these
whether driven by wind or not.
9."Hardware"means a network of electronic
machine components (microprocessors)
capable of accepting instructions and
information,processing the information
according to the instructions,and producing
desired results.
a.Hardware Includes --"Hardware"
includes but is not limited to:
1)mainframe and mid-range computers
and network servers;
2)personal computers and
workstations;
3)laptops,palmtops,notebook PCs,
other portable computer devices and
accessories including,but not limited
to,multimedia projectors;and
4)peripheral data processing
equipment,including but not limited
to,printers,keyboards,monitors,and
modems.
b.Hardware Does Not Include --
"Hardware"does not include:
1)"software";and
2)"off-site server"and "on-site server".
10."Limit"means the amount of coverage that
applies.
11."Mechanical breakdown"means the
malfunction or failure of moving or electronic
parts,component failure,faulty installation,or
blowout.
12."Media"means processing,recording,or
storage media used with "hardware".This
includes but is not limited to films,tapes,
cards,discs,drums,cartridges,or cells.
13."Off-site server"means a server for "your"
Web site:
a.that is not at a premises described on the
"schedule of coverages";and
b.that is being maintained and/or operated
by an independent contractor acting as
"your"Web host or "your"Internet service
provider that is acting as "your"Web
host.
14."On-site server"means a server for "your"
Web site:
a.that is at a premises occupied by "you"
and described on the "schedule of
coverages";and
b.that is being maintained and/or operated
by "you"or an independent contractor
acting as "your"Web site consultant.
15."Pollutant"means:
a.any solid,liquid,gaseous,thermal,or
radioactive irritant or contaminant,
including but not limited to acids,alkalis,
chemicals,fumes,smoke,soot,vapor,
and waste.Waste includes materials to
be recycled,reclaimed,or reconditioned,
as well as disposed of;and
b.electrical or magnetic emissions,whether
visible or invisible,and sound emissions.
16."Power supply disturbance"means
interruption of power supply,power surge,
blackout,or brownout.
17."Programs and applications"means
operating programs and applications that
"you"purchase and that are:
a.stored on "media";or
b.pre-installed and stored in "hardware".
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18."Proprietary programs"means proprietary
applications or programs that are developed
in-house or that "you"had developed
specifically for "you"and that are:
a.stored on "media";or
b.installed and stored in "hardware".
19."Restoration period"means:
a.the time it should reasonably take to
resume "your""business"to a similar
level of service starting from the date of a
physical loss of or damage to covered
property at a premises described on the
"schedule of coverages"that is caused
by a covered peril and ending on the
date:
1)the property should be rebuilt,
repaired,or replaced;or
2)"business"is resumed at a new
permanent location.
This is not limited by the expiration date
of the policy.
b.The "restoration period"also means the
increased time required to comply with
the enforcement of any ordinance,law,or
decree that:
1)regulates the construction,use,or
repair of any property;or
2)requires the demolition of any
property,in part or in whole,not
damaged by a covered peril.
The ordinance,law,or decree must be in
force at the time of loss.
"Restoration period"does not mean the
increased time required to comply with
the enforcement of any ordinance,law,or
decree that requires "you"or anyone else
to test for,monitor,clean up,remove,
contain,treat,detoxify,or neutralize or in
any way respond to or assess the effects
of "pollutants".
c.Only as regards coverage described
under Off Premises Utility Service
Interruption;Interruption of Web Site (if
added to this coverage part by
endorsement);and Property In Transit in
the Supplemental Income Coverages,
"restoration period"also means the time
it should reasonably take to resume
"your""business"starting from the date of
direct physical loss of or damage caused
by a covered peril to:
1)property not located at a premises
described on the "schedule of
coverages"and that is owned by a
utility,a landlord,or another utility
supplier;
2)"your"Web site operation that is
being maintained or operated by and
that is located at the premises of an
independent contractor or Internet
service provider;and
3)property in transit;
and ending on the date the property
should be rebuilt,repaired,or replaced.
This is not limited by the expiration date
of the policy.
20."Schedule of coverages"means:
a.all pages labeled schedule of coverages
or schedules which pertain to this
coverage;and
b.declarations or supplemental
declarations which pertain to this
coverage.
21."Sinkhole collapse"means the sudden
settlement or collapse of earth supporting the
covered property into subterranean voids
created by the action of water on a limestone
or similar rock formation.
Sinkhole collapse does not include the value
of the land or the cost of filling sinkholes.
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22."Software"means "media","data records",
"programs and applications",and "proprietary
programs".
Software does not mean "Web site software".
23."Specified perils"means aircraft;civil
commotion;explosion;falling objects;fire;
hail;leakage from fire extinguishing
equipment;lightning;riot;"sinkhole collapse";
smoke;sonic boom;vandalism;vehicles;
"volcanic action";water damage;weight of
ice,snow,or sleet;and windstorm.
Falling objects does not include loss to:
a.personal property in the open;or
b.to the interior of buildings or structures or
to personal property inside buildings or
structures unless the exterior of the roofs
or walls are first damaged by a falling
object.
Water damage means the sudden or
accidental discharge or leakage of water or
steam as a direct result of breaking or
cracking of a part of the system or appliance
containing the water or steam.
24."Terms"means all provisions,limitations,
exclusions,conditions,and definitions that
apply.
25."Volcanic action"means airborne volcanic
blast or airborne shock waves;ash,dust,or
particulate matter;or lava flow.
Volcanic action does not include the cost to
remove ash,dust,or particulate matter that
does not cause direct physical loss to the
covered property.
26."Web site server"means "on-site server"and
"off-site server".
27."Web site software"means the following
software that are used in "your""Web site
server":
a."media";
b."data records";
c.programs and applications which means
operating programs and applications that
"you"purchase and that are stored on
"media"or pre-installed and stored in
"Web site servers";and
d.proprietary programs which means
proprietary applications or programs that
are developed in-house or that "you"had
developed specifically for "you"and that
are stored on "media"or installed and
stored in "Web site servers".
PROPERTY COVERED
"We"cover the following property unless the
property is excluded or subject to limitations.
1.Hardware --
a.Coverage --"We"cover direct physical
loss caused by a covered peril to
"hardware"and similar property of others
that is in "your"care,custody,or control.
b.Coverage Limitations --"We"only
cover "hardware"and similar property of
others:
1)when a "limit"for "hardware"is
indicated on the "schedule of
coverages";and
2)while at a premises described on the
"schedule of coverages".
2.Software --
a.Coverage --"We"cover direct physical
loss caused by a covered peril to:
1)"media";
2)"programs and applications";and
similar property of others that is in "your"
care,custody,or control.
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b.Coverage Limitations --"We"only
cover "media","programs and
applications",and similar property of
others:
1)when a "limit"for "media"and
"programs and applications"is
indicated on the "schedule of
coverages";and
2)while at a premises described on the
"schedule of coverages".
c.We Do Not Cover --Except as provided
under Supplemental Coverages,"we"do
not cover:
1)"data records";and
2)"proprietary programs".
INCOME COVERAGE
"We"provide the following coverage unless the
coverage is excluded or subject to limitations.
1.Coverage Options --One of the following
described coverage options applies when that
option is indicated on the "schedule of
coverages":
a.Earnings and Extra Expense;or
b.Extra Expense only.
2.Coverage --
a.Covered Property --"We"provide the
coverages described below during the
"restoration period"when "your"
"business"is necessarily wholly or
partially interrupted by direct physical loss
of or damage to covered property at a
premises described on the "schedule of
coverages"as a result of a covered peril.
b.Described Premises and Air
Conditioning System --"We"provide
the coverages described below under 3.
and 4.during the "restoration period"
when "your""business"is necessarily
wholly or partially interrupted as a result
of direct physical loss of or damage to:
1)a premises described on the
"schedule of coverages"that
prevents "you"from using covered
property;or
2)the air conditioning or electrical
systems which are necessary for the
operation of covered property and
results in a reduction or suspension
of "your""business".
c.If You Lease Your Premises --If "you"
lease,rent,or do not own the premises
"you"occupy,for the purposes of
determining an Income Coverage loss,
"your"location is the space that "you"
lease,rent,or occupy including,but not
limited to,all passageways to "your"
location within the building.
3.Earnings --"We"cover "your"actual loss of
net income (net profit or loss before income
taxes)that would have been earned or
incurred and continuing operating expenses
normally incurred by "your""business",
including but not limited to payroll expense.
4.Extra Expense --"We"cover only the extra
expenses that are necessary during the
"restoration period"that "you"would not have
incurred if there had been no direct physical
loss or damage to property caused by or
resulting from a covered peril.
a.Expenses To Reduce Interruption --
"We"cover any extra expense to avoid or
reduce the interruption of "your"data
processing operations and continue
operating at a premises described on the
"schedule of coverages",replacement
location,or a temporary location.This
includes expenses to relocate and costs
to outfit and operate a replacement or
temporary location.
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"We"will also cover any extra expense to
reduce the interruption of "business"if it
is not possible for "you"to continue
operating during the "restoration period".
b.Expenses To Repair/Restore Property
and Information --To the extent that
they reduce a loss otherwise payable
under this coverage,"we"will cover any
extra expenses to:
1)repair,replace,or restore any
property;and
2)research,replace,or restore
information on damaged documents,
manuscripts,or records that:
a)are inscribed,printed,or written;
or
b)exist on electronic or magnetic
media.
PROPERTY NOT COVERED
1.Accounts,Bills,or Documents --"We"do
not cover accounts,bills,evidences of debt,
records,abstracts,deeds,manuscripts,
program documentation,or other documents
except those that are in "software"form and
then only in that form.
2.Checked Luggage --"We"do not cover loss
resulting from theft or disappearance of a
laptop,palmtop,notebook PC,or any
portable computer while in transit as checked
luggage.
3.Contraband --"We"do not cover contraband
or property in the course of illegal
transportation or trade.
4.Loaned,Leased,or Rented To Others --
"We"do not cover property that "you"loan,
lease,or rent to others.
5.Money and Securities --"We"do not cover
currency,food stamps,lottery tickets not held
for sale,money,notes,or securities.
6.Stock in Trade --"We"do not cover property
that is "your"stock in trade.
7.Web Site Servers --"We"do not cover "Web
site servers"including "Web site software".
COVERAGE EXTENSIONS
Provisions That Apply To Coverage
Extensions --The following Coverage
Extensions indicate an applicable "limit".This
"limit"may also be shown on the "schedule of
coverages".
If a different "limit"is indicated on the "schedule
of coverages",that "limit"will apply instead of the
"limit"shown below.
However,if no "limit"is indicated for a Coverage
Extension,coverage is provided up to the full
"limit"for the applicable covered property unless
a different "limit"is indicated on the "schedule of
coverages".
Unless otherwise indicated,the coverages
provided below are part of and not in addition to
the applicable "limit"for coverage described
under Property Covered.
The "limit"provided under a Coverage Extension
cannot be combined or added to the "limit"for
any other Coverage Extension or Supplemental
Coverage including a Coverage Extension or
Supplemental Coverage that is added to this
policy by endorsement.
The following coverage extensions are not
subject to and not considered in applying
coinsurance conditions.
1.Debris Removal --
a.Coverage --"We"pay the cost to remove
the debris of covered property that is
caused by a covered peril.
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b.We Do Not Cover --This coverage does
not include costs to:
1)extract "pollutants"from land or
water;or
2)remove,restore,or replace polluted
land or water.
c.Limit --"We"do not pay any more under
this coverage than 25%of the amount
"we"pay for the direct physical loss."We"
will not pay more for loss to property and
debris removal combined than the "limit"
for the damaged property.
d.Additional Limit --"We"pay up to an
additional $5,000 for debris removal
expense when the debris removal
expense exceeds 25%of the amount
"we"pay for direct physical loss or when
the loss to property and debris removal
combined exceeds the "limit"for the
damaged property.
e.You Must Report Your Expenses --
"We"do not pay any expenses unless
they are reported to "us"in writing within
180 days from the date of direct physical
loss to covered property.
2.Electrical and Power Supply
Disturbance --
a.Coverage --"We"cover direct physical
loss to covered property caused by:
1)"electrical disturbance";or
2)"power supply disturbance".
b.Coverage Limitation --"We"only cover
loss caused by "electrical disturbance"
and "power supply disturbance"if the
cause of such disturbance took place
within 500 feet of the premises where the
loss occurred.
However,if the "schedule of coverages"
indicates that there is no limitation,then
the 500 feet limitation described above
does not apply to this Coverage
Extension.
3.Emergency Removal --
a.Coverage --"We"pay for any direct
physical loss to covered property while it
is being moved or being stored to prevent
a loss caused by a covered peril.
b.Time Limitation --This coverage applies
for up to 365 days after the property is
first moved.Also,this coverage does not
extend past the date on which this policy
expires.
4.Emergency Removal Expenses --
a.Coverage --"We"pay for "your"
expenses to move or store covered
property to prevent a loss caused by a
covered peril.
b.Time Limitation --This coverage applies
for up to 365 days after the property is
first moved.Also,this coverage does not
extend past the date on which this policy
expires.
c.Limit --The most "we"pay in any one
occurrence for expenses to move or
store covered property to prevent a loss
is $1,000.
d.This Is A Separate Limit --The "limit"
for Emergency Removal Expenses is
separate from,and not part of,the
applicable "limit"for coverage described
under Property Covered.
5.Fraud and Deceit --
a.Coverage --"We"cover theft of covered
property when "you","your"agents,
customers,or consignees are
fraudulently induced to part with the
covered property:
1)to persons who falsely represent
themselves as the proper persons to
receive the property;or
2)by the acceptance of fraudulent bills
of lading or shipping receipts.
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b.Limit --The most "we"pay in any one
occurrence for theft of covered property
under this Coverage Extension is $1,000.
6.Mechanical Breakdown Coverage --"We"
pay for loss to covered property caused by
"mechanical breakdown".
SUPPLEMENTAL COVERAGES
Provisions That Apply To Supplemental
Coverages --The following Supplemental
Coverages indicate an applicable "limit".This
"limit"may also be shown on the "schedule of
coverages".
If a different "limit"is indicated on the "schedule
of coverages",that "limit"will apply instead of the
"limit"shown below.
However,if no "limit"is indicated for a
Supplemental Coverage,coverage is provided up
to the full "limit"for the applicable covered
property unless a different "limit"is indicated on
the "schedule of coverages".
Unless otherwise indicated,a "limit"for a
Supplemental Coverage provided below is
separate from,and not part of,the applicable
"limit"for coverage described under Property
Covered.
The "limit"available for coverage described
under a Supplemental Coverage:
a.is the only "limit"available for the described
coverage;and
b.is not the sum of the "limit"indicated for a
Supplemental Coverage and the "limit"for
coverage described under Property Covered.
The "limit"provided under a Supplemental
Coverage cannot be combined or added to the
"limit"for any other Supplemental Coverage or
Coverage Extension including a Supplemental
Coverage or Coverage Extension that is added to
this policy by endorsement.
The following coverage extensions are not
subject to and not considered in applying
coinsurance conditions.
1.Acquired Locations --
a.Coverage --"We"cover direct physical
loss caused by a covered peril to covered
property at locations that "you"acquire
during the policy period.
b.Limit --"We"pay up to $250,000 for
covered property at locations that "you"
acquire.
c.Time Limitation --This coverage applies
for up to 60 days from the date "you"
acquire the location or until "you"report
the acquired location to "us",whichever
occurs first.
However,this coverage does not go
beyond the end of the policy period.
d.Additional Premium --"You"must pay
any additional premium due from the
date "you"acquire the location.
2.Earthquake Coverage --If coverage is
indicated on the "schedule of coverages",
"we"cover direct physical loss caused by
earthquake and volcanic eruption to covered
property while at a premises described on the
"schedule of coverages".
3.Flood Coverage --If coverage is indicated
on the "schedule of coverages","we"cover
direct physical loss caused by "flood"to
covered property while at a premises
described on the "schedule of coverages".
4.Newly Purchased or Leased Hardware --
a.Coverage --"We"cover direct physical
loss caused by a covered peril to
additional "hardware"including pre-
installed "programs and applications"that
"you"purchase or lease during the policy
period.
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b.Limit --The most that "we"pay for any
loss under this additional coverage is the
least of:
1)the actual cash value of the covered
property;or
2)$250,000.
c.Time Limitation --"We"extend
coverage to the additional "hardware"
that "you"purchase or lease for up to 60
days.
This supplemental coverage will end
when any of the following first occur:
1)this policy expires;
2)60 days after "you"obtain the
additional "hardware";or
3)"you"report the additional "hardware"
to "us".
d.Additional Premium --"You"must pay
any additional premium due from the
date "you"purchase or lease the
additional "hardware".
5.Off-Site Computers --
a.Coverage --"We"cover direct physical
loss caused by a covered peril to covered
property in the custody of "you","your"
officers,"your"partners,or "your"
employees,while:
1)at "your"residence or the residence
of "your"officers,partners,or
employees;
2)temporarily at a premises that is not
described on the "schedule of
coverages";or
3)in transit between a:
a)residence or temporary
premises;and
b)premises described on the
"schedule of coverages".
b.Limit --The most "we"pay in any one
occurrence for loss to off-site covered
property is $2,500.
6.Pollutant Cleanup and Removal --
a.Coverage --"We"pay "your"expense to
extract "pollutants"from land or water if
the discharge,dispersal,seepage,
migration,release,or escape of the
"pollutants"is caused by a covered peril
that occurs during the policy period.
b.Time Limitation --The expenses to
extract "pollutants"are paid only if they
are reported to "us"in writing within 180
days from the date the covered peril
occurs.
c.We Do Not Cover --"We"do not pay the
cost of testing,evaluating,observing,or
recording the existence,level,or effects
of "pollutants".
However,"we"pay the cost of testing
which is necessary for the extraction of
"pollutants"from land or water.
d.Limit --The most "we"pay for each
location is $10,000 for the sum of all such
expenses arising out of a covered peril
occurring during each separate 12-month
period of this policy.
7.Property In Transit --
a.Coverage --"We"cover direct physical
loss to covered property caused by a
covered peril while in transit.
b.Limit --The most "we"pay in any one
occurrence for loss to covered property in
transit is $5,000.
8.Proprietary Programs and Data Records --
a.Coverage --"We"cover the cost of
research or other expenses necessary to
reproduce,replace,or restore lost files or
codes on lost or damaged "data records"
and "proprietary programs"and similar
property of others that is in "your"care,
custody,or control.
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b.Coverage Limitations --"We"only
cover "data records","proprietary
programs",and similar property of others:
1)while at a premises described on the
"schedule of coverages";and
2)if the cost of research or other
expenses necessary to reproduce,
replace,or restore lost files or codes
are incurred due to a direct physical
loss caused by a covered peril to
"data records"and "proprietary
programs".
c.Limit --The most "we"pay in any one
occurrence for "data records"and
"proprietary programs"is $5,000.
9.Rewards --
a.Coverage --"We"pay for reward
information that leads to a conviction for:
1)arson,
2)theft,or
3)vandalism including,but not limited
to,"computer hacking"and
"computer virus".
The conviction must involve a covered
loss caused by arson,theft,or vandalism.
b.Limit --The most "we"pay in any one
occurrence for reward information is
$1,000.
c.Limit Is Not Increased By The Number
of Persons Providing Information --
The amount "we"pay is not increased by
the number of persons involved in
providing the information.
10.Sewer Backup and Water Below the
Surface --If coverage is indicated on the
"schedule of coverages","we"cover direct
physical loss caused by:
a.water that backs up through a sewer or
drain;or
b.water below the surface of the ground,
including but not limited to water that
exerts pressure on or flows,seeps,or
leaks through or into a described
premises.
11.Software Storage --
a.Coverage --"We"cover direct physical
loss caused by a covered peril to
duplicate and back-up "software"stored
at a "software"storage location.
b.Coverage Condition --Each "software"
storage location must be in a separate
building which is at least 100 feet away
from a premises described on the
"schedule of coverages".
c.Limit --The most "we"pay in any one
occurrence for loss to duplicate and
back-up "software"is $25,000.
12.Virus and Hacking Coverage --
a.Coverage --"We"cover direct physical
loss to covered "hardware"and
"software"caused by a "computer virus"
or by "computer hacking".
b.We Do Not Cover --"We"do not cover:
1)loss of exclusive use of any "data
records"or "proprietary programs"
that have been copied,scanned,or
altered;
2)loss of or reduction in economic or
market value of any "data records"or
"proprietary programs"that have
been copied,scanned,or altered;
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3)theft from "your""data records"or
"proprietary programs"of confidential
information through the observation
of the "data records"or "proprietary
programs"by accessing covered
"hardware"or "your"computer
network without any alteration or
other physical loss or damage to the
records or programs.Confidential
information includes,but is not
limited to,customer information,
processing methods,or trade
secrets;and
4)except as provided under the
Supplemental Income Coverages,
denial of access to or services from
"your""hardware"or "your"computer
network.
c.Limit --The most "we"pay in any one
occurrence under this Supplemental
Coverage is $5,000.
The most "we"pay for all covered losses
under this Supplemental Coverage during
each separate 12-month period of this
policy is $10,000.
INCOME COVERAGE EXTE NSIONS
Provisions That Apply To Income Coverage
Extensions --The following Income Coverage
Extensions indicate an applicable "limit"or
limitation.This "limit"or limitation may also be
shown on the "schedule of coverages".
If a different "limit"or limitation is indicated on the
"schedule of coverages",that "limit"or limitation
will apply instead of the "limit"or limitation shown
below.
The following Income Coverage Extensions are
part of and not in addition to the applicable
Income Coverage "limit".
1.Interruption by Civil Authority --
a.Coverage --"We"extend "your"
coverage for earnings and extra expense
to include loss sustained while access to
premises described on the "schedule of
coverages"is specifically denied by an
order of civil authority.
b.Coverage Limitation --The order of civil
authority must be a result of direct
physical loss of or damage to property,
other than at a premises described on
the "schedule of coverages"and must be
caused by a covered peril.
c.Time Limitation --Unless otherwise
indicated on the "schedule of coverages",
this coverage extension is limited to 30
consecutive days from the date of the
order.
2.Period of Loss Extension After Business
Resumes --
a.Coverage --"We"extend "your"
coverage for earnings to cover loss from
the date the covered property that
incurred the loss is rebuilt,repaired,or
replaced and "your"data processing
operations are resumed until:
1)the end of 30 consecutive days
(unless otherwise indicated on the
"schedule of coverages");or
2)the date "you"could reasonably
resume "your""business"to the
conditions that would generate the
earnings amount that would have
existed had no loss or damage
occurred,
whichever is earlier.
b.Coverage Limitation --Loss of earnings
must be caused by direct physical loss of
or damage to property at a premises
described on the "schedule of coverages"
as a result of a covered peril.
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SUPPLEMENTAL INCOME
COVERAGES
Provisions That Apply To Supplemental
Income Coverages --Unless otherwise
indicated,the following Supplemental Income
Coverages apply separately to each premises
described on the "schedule of coverages".
The following Supplemental Income Coverages
indicate an applicable "limit".This "limit"may also
be shown on the "schedule of coverages".
If a different "limit"is indicated on the "schedule
of coverages",that "limit"will apply instead of the
"limit"shown below.
Unless otherwise indicated,a "limit"for a
Supplemental Income Coverage provided below
is separate from,and not part of,the applicable
Income Coverage "limit".The "limit"available for
coverage described under a Supplemental
Income Coverage:
a.is the only "limit"available for the described
coverage;and
b.is not the sum of the "limit"indicated for a
Supplemental Income Coverage and the
Income Coverage "limit".
The "limit"provided under a Supplemental
Income Coverage cannot be combined or added
to the "limit"for any other Supplemental Income
Coverage or Income Coverage Extension.
1.Acquired Locations --
a.Coverage --"We"extend "your"
coverage for earnings and extra expense
to include direct physical loss to covered
property while at locations that "you"
acquire during the policy period.
b.Time Limitation --This coverage applies
for up to 60 days from the date "you"
acquire the location or until "you"report
the acquired location to "us",whichever
occurs first.
However,this coverage does not go
beyond the end of the policy period.
c.Additional Premium --"You"must pay
any additional premium due from the
date "you"acquire the location.
d.Limit --The most "we"pay in any one
occurrence for loss of earnings and
incurred extra expense at each newly
acquired location is $25,000.
2.Earthquake Coverage --If coverage is
indicated on the "schedule of coverages",
"we"cover direct physical loss caused by
earthquake and volcanic eruption to covered
property while at a premises described on the
"schedule of coverages".
3.Flood Coverage --If coverage is indicated
on the "schedule of coverages","we"cover
direct physical loss caused by "flood"to
covered property while at a premises
described on the "schedule of coverages".
4.Off Premises Utility Service Interruption --
a.Coverage --Coverage for earnings
and/or extra expense is extended to loss
of earnings or extra expenses that "you"
incur during the "restoration period"when
"your"data processing operations are
interrupted due to the interruption of an
off premises utility services when the
interruption is a result of direct physical
loss or damage by a covered peril to
property that is not located at a premises
described on the "schedule of coverages"
and that is owned by a utility,a landlord,
or another supplier who provides "you"
with:
1)power,gas;
2)telecommunications,including but
not limited to Internet access;or
3)water.
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b.Overhead Transmission Lines
Exclusion --If the "schedule of
coverages"indicates that overhead
transmission lines are excluded,
coverage under this extension does not
include loss to overhead transmission
lines that deliver utility service to "you".
Overhead transmission lines include,but
are not limited to:
1)overhead transmission and
distribution lines;
2)overhead transformers and similar
equipment;and
3)supporting poles and towers.
c.Waiting Period Limitation --Unless
otherwise indicated on the "schedule of
coverages","we"do not pay for "your"
loss of earnings under this Supplemental
Income Coverage until after the first 24
hours following the direct physical loss of
or damage to the property owned by a
utility,a landlord,or another supplier.
This waiting period does not apply to
extra expenses that "you"incur.
d.Limit --The most "we"pay in any one
occurrence under this Supplemental
Income Coverage is $10,000.
5.Property In Transit --
a.Coverage --Coverage for earnings is
extended to loss of earnings during the
"restoration period"when "your"
"business"is interrupted as a result of a
direct physical loss,caused by a covered
peril,to covered property in transit.
b.Limit --The most "we"pay in any one
occurrence under this Supplemental
Income Coverage is $5,000.
6.Sewer Backup and Water Below the
Surface --If coverage is indicated on the
"schedule of coverages","we"extend "your"
coverage for earnings and extra expense to
include direct physical loss to covered
property caused by:
a.water that backs up through a sewer or
drain;or
b.water below the surface of the ground,
including but not limited to water that
exerts pressure on or flows,seeps,or
leaks through or into a described
premises.
7.Virus and Hacking Coverage --
a.Coverage --Coverage for earnings
and/or extra expense is extended to loss
of earnings or extra expenses caused by
a "computer virus"or by "computer
hacking"that results in:
1)direct physical loss or damage to
covered "software"and "hardware";
or
2)denial of access to or services from
"your""hardware"or "your"computer
network.
b.We Do Not Cover --"We"do not cover
loss of earnings or extra expenses under
this Supplemental Income Coverage that
results from:
1)loss of exclusive use of any "data
records"or "proprietary programs"
that have been copied,scanned,or
altered;
2)loss of or reduction in economic or
market value of any "data records"or
"proprietary programs"that have
been copied,scanned,or altered;
3)theft from "your""data records"or
"proprietary programs"of confidential
information through the observation
of the "data records"or "proprietary
programs"by accessing covered
"hardware"or "your"computer
network without any alteration or
other physical loss or damage to the
records or programs.
Confidential information includes,but
is not limited to customer information,
processing methods,or trade
secrets.
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c.Waiting Period Limitation --Unless
otherwise indicated on the "schedule of
coverages","we"do not pay for "your"
loss of earnings under this Supplemental
Income Coverage until after the first 24
hours following the direct physical loss of
or damage to "your"data processing
operations.This waiting period does not
apply to extra expenses that "you"incur.
d.Limit --The most "we"pay in any one
occurrence under this Supplemental
Income Coverage is $5,000.
The most "we"pay for all covered losses
under this Supplemental Income
Coverage during each 12-month period
of this policy is $15,000.
PERILS COVERED
"We"cover risks of direct physical loss unless the
loss is limited or caused by a peril that is
excluded.
PERILS EXCLUDED
1."We"do not pay for loss or damage caused
directly or indirectly by one or more of the
following excluded causes or events.Such
loss or damage is excluded regardless of
other causes or events that contribute to or
aggravate the loss,whether such causes or
events act to produce the loss before,at the
same time as,or after the excluded causes
or events.
a.Civil Authority --"We"do not pay for
loss caused by order of any civil
authority,including seizure,confiscation,
destruction,or quarantine of property.
"We"do pay for loss resulting from acts
of destruction by the civil authority to
prevent the spread of fire,unless the fire
is caused by a peril excluded under this
coverage.
b.Earth Movement --Except as provided
under Supplemental Coverages -
Earthquake Coverage,"we"do not pay
for loss caused by any earth movement
(other than "sinkhole collapse")or caused
by eruption,explosion,or effusion of a
volcano.Earth movement includes,but is
not limited to:earthquake;landslide;
mudflow;mudslide;mine subsidence;or
sinking,rising,or shifting of earth.
"We"do cover direct loss by fire,
explosion,or "volcanic action"resulting
from either earth movement or eruption,
explosion,or effusion of a volcano.
c.Flood --Except as provided under
Supplemental Coverages -Flood
Coverage,"we"do not pay for loss
caused by "flood".However,"we"do
cover the resulting loss if fire,explosion,
or sprinkler leakage results.
d.Nuclear Hazard --"We"do not pay for
loss caused by or resulting from a
nuclear reaction,nuclear radiation,or
radioactive contamination (whether
controlled or uncontrolled;whether
caused by natural,accidental,or artificial
means).Loss caused by nuclear hazard
is not considered loss caused by fire,
explosion,or smoke.Direct loss by fire
resulting from the nuclear hazard is
covered.
e.Sewer Backup and Water Below the
Surface --Except as provided under
Supplemental Coverages -Sewer
Backup and Water Below the Surface,
"we"do not pay for loss caused by or
resulting from:
1)water that backs up through a sewer
or drain;or
2)water below the surface of the
ground,including but not limited to
water that exerts pressure on or
flows,seeps,or leaks through or into
a building or structure.
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But if sewer backup and water below the
surface results in fire,explosion,or
sprinkler leakage,"we"cover the loss or
damage caused by that fire,explosion,or
sprinkler leakage.
f.War and Military Action --"We"do not
pay for loss caused by:
1)war,including undeclared war or civil
war;or
2)a warlike action by a military force,
including action taken to prevent or
defend against an actual or expected
attack,by any government,
sovereign,or other authority using
military personnel or other agents;or
3)insurrection,rebellion,revolution,or
unlawful seizure of power including
action taken by governmental
authority to prevent or defend against
any of these.
With regard to any action that comes
within the "terms"of this exclusion and
involves nuclear reaction,nuclear
radiation,or radioactive contamination,
this War and Military Action Exclusion will
apply in place of the Nuclear Hazard
Exclusion.
2."We"do not pay for loss or damage that is
caused by or results from one or more of the
following:
a.Computer Virus or Computer Hacking
--Except as provided under
Supplemental Coverages -Virus and
Hacking Coverage and Supplemental
Income Coverages -Virus and Hacking
Coverage,"we"do not pay for:
1)any direct or indirect loss or damage;
or
2)loss of access,loss of use,or loss of
functionality
caused by a "computer virus"or by
"computer hacking".
b.Criminal,Fraudulent,or Dishonest
Acts --"We"do not pay for loss caused
by or resulting from criminal,fraudulent,
dishonest,or illegal acts alone or in
collusion with another by:
1)"you";
2)others who have an interest in the
property;
3)others to whom "you"entrust the
property;
4)"your"partners,officers,directors,
trustees,or joint adventurers;or
5)the employees or agents of 1),2),3),
or 4)above,whether or not they are
at work.
This exclusion does not apply to acts of
destruction by "your"employees,but "we"
do not pay for theft by employees.
This exclusion does not apply to covered
property in the custody of a carrier for
hire.
c.Electrical and Power Supply
Disturbance --"We"do not pay for loss
caused by "electrical disturbance"or
"power supply disturbance"if the cause
of such disturbance took place more than
500 feet from the premises where the
loss occurred.
However,if disturbance coverage beyond
500 feet is indicated on the "schedule of
coverages",then the Electrical and
Power Supply Disturbance exclusion
described above is deleted.
d.Loss of Use --"We"do not pay for loss
caused by or resulting from loss of use,
business interruption,delay,or loss of
market.
This exclusion does not apply to the
coverages described under Income
Coverages,Income Coverage
Extensions,and Supplemental Income
Coverages.
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e.Pollutants --"We"do not pay for loss
caused by or resulting from release,
discharge,seepage,migration,dispersal,
or escape of "pollutants"unless the
release,discharge,seepage,migration,
dispersal,or escape is caused by a
"specified peril"."We"do pay for any
resulting loss caused by a "specified
peril".
f.Temperature/Humidity --Except as
provided under Utility Interruption,"we"
do not pay for loss to covered property
caused by:
1)dryness,dampness,humidity;or
2)changes in or extremes of
temperature.
However,"we"do pay for loss to covered
property that results from a direct
physical loss,caused by a covered peril,
to the air conditioning system that
services covered "hardware".
g.Voluntary Parting --Except as provided
under Coverage Extensions -Fraud and
Deceit,"we"do not pay for loss caused
by or resulting from voluntary parting with
title to or possession of any property
because of any fraudulent scheme,trick,
or false pretense.
3."We"do not pay for loss or damage if one or
more of the following exclusions apply to the
loss.But if loss by a covered peril results,
"we"will pay for the resulting loss.
a.Contamination,Deterioration,Rust,or
Corrosion --"We"do not pay for loss
caused by contamination or deterioration
including corrosion,decay,fungus,
mildew,mold,rot,rust,or any quality,
fault,or weakness in covered property
that causes it to damage or destroy itself.
This exclusion does not apply to loss
caused by "mechanical breakdown".
b.Wear and Tear or Obsolescence --
"We"do not pay for loss caused by wear
and tear,depreciation,or obsolescence.
4."We"do not pay for loss of earnings or extra
expenses,as described under Income
Coverage,caused by or resulting from one or
more of the following:
a.Error or Omission In Programming --
"We"do not pay for extra expense
caused by an error or omission in
programming or incorrect instructions to
"hardware".
b.Leases,Licenses,Contracts,or
Orders --"We"do not cover any
increase in loss due to the suspension,
lapse,or cancellation of leases,licenses,
contracts,or orders.
However,"we"do cover loss during the
"restoration period"if the suspension,
lapse,or cancellation results directly from
the interruption of "your""business".
"We"do not cover any extra expense
caused by the suspension,lapse,or
cancellation of leases,licenses,
contracts,or orders beyond the
"restoration period".
c.Strikes,Protests,and Other
Interference --"We"do not cover any
increase in loss due to interference by
strikers or other persons at a premises
described on the "schedule of
coverages".This applies to interference
with rebuilding,repairing,or replacing the
property or with resuming "your"
"business".
d.Utility Failure --Except as provided
under Supplemental Income Coverages -
Off Premises Utility Service Interruption,
"we"do not pay for loss caused by or
resulting from the failure of a utility to
supply electrical power or other utility
service to a described premises,if the
failure takes place away from the
described premises."We"do not pay for
loss caused by or resulting from the
failure of a utility to supply service
regardless of the cause of failure.
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e.Interruption of Web Site --"We"do not
pay for loss caused by or resulting from
the interruption of "your"Web site."We"
do not pay for loss caused by or resulting
from the interruption of "your"Web site
regardless of the cause of the
interruption.
WHAT MUST BE DONE
IN CASE OF LOSS
1.Notice --In case of a loss,"you"must:
a.give "us"or "our"agent prompt notice,
including a description of the property
involved ("we"may request written
notice);and
b.give notice to the police when the act that
causes the loss is a crime.
2.You Must Protect Property --"You"must
take all reasonable steps to protect covered
property at and after an insured loss to avoid
further loss.
a.Payment of Reasonable Costs --"We"
do pay the reasonable costs incurred by
"you"for necessary repairs or emergency
measures performed solely to protect
covered property from further damage by
a peril insured against if a peril insured
against has already caused a loss to
covered property."You"must keep an
accurate record of such costs.
b.We Do Not Pay --"We"do not pay for
such repairs or emergency measures
performed on property which has not
been damaged by a peril insured against.
This does not increase "our""limit".
3.Proof of Loss --"You"must send "us",within
60 days after "our"request,a signed,sworn
proof of loss.This must include the following
information:
a.the time,place,and circumstances of the
loss;
b.other policies of insurance that may cover
the loss;
c."your"interest and the interests of all
others in the property involved,including
all mortgages and liens;
d.changes in title of the covered property
during the policy period;and
e.estimates,specifications,inventories,
and other reasonable information that
"we"may require to settle the loss.
4.Intent To Continue Business -Income
Coverage --If "you"intend to continue "your"
"business","you"must resume all or part of
"your""business"as soon as possible.
5.Examination --"You"must submit to
examination under oath in matters connected
with the loss as often as "we"reasonably
request and give "us"sworn statements of
the answers.If more than one person is
examined,"we"have the right to examine
and receive statements separately and not in
the presence of others.
6.Records --"You"must produce records,
including tax returns and bank microfilms of
all canceled checks relating to value,loss,
and expense and permit copies and extracts
to be made of them as often as "we"
reasonably request.
7.Damaged Property --"You"must exhibit the
damaged and undamaged property as often
as "we"reasonably request and allow "us"to
inspect or take samples of the property.
8.Volunteer Payments --"You"must not,
except at "your"own expense,voluntarily
make any payments,assume any obligations,
pay or offer any rewards,or incur any other
expenses except as respects protecting
property from further damage.
9.Abandonment --"You"may not abandon the
property to "us"without "our"written consent.
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10.Cooperation --"You"must cooperate with
"us"in performing all acts required by this
policy.
VALUATION
1.Hardware --The following is the value of
"hardware":
a.Replacement Cost --The value of
"hardware"will be based on replacement
cost without any deduction for
depreciation unless Actual Cash Value is
indicated on the "schedule of coverages".
1)Replacement Cost Limitation --
The replacement cost is limited to the
cost of repair or replacement with
similar materials on the same site
and used for the same purpose.The
payment will not exceed the amount
"you"spend to repair or replace the
damaged or destroyed property.
2)Replacement Cost Does Not Apply
Until Repair or Replacement --
Replacement cost valuation does not
apply until the damaged or destroyed
property is repaired or replaced.
3)Time Limitation --"You"may make
a claim for actual cash value before
repair or replacement takes place,
and later for the replacement cost if
"you"notify "us"of "your"intent within
180 days after the loss.
b.Actual Cash Value --When Actual Cash
Value is indicated on the "schedule of
coverages",the value of "hardware"will
be based on the actual cash value at the
time of the loss with a deduction for
depreciation.
2.Software --The following is the value of
"software":
a.Programs and Applications --
1)Cost To Reinstall --The value of
"programs and applications"will be
based on the cost to reinstall the
"programs or applications"from the
licensed discs that were originally
used to install the programs or
applications.
2)If The Original Discs Are Lost --If
the original licensed discs are lost,
damaged,or can no longer be
obtained,the value of "programs and
applications"will be based on the
cost of the most current version of
the "programs or applications".
b.Proprietary Programs --
1)Cost of Reproduction --The value
of "proprietary programs"will be
based on the cost of reproduction
from duplicate copies.The cost of
reproduction includes,but is not
limited to,the cost of labor to copy or
transcribe from duplicate copies.
2)If Duplicate Copies Do Not Exist --
If duplicate copies do not exist,the
value of "proprietary programs"will
be based on the cost of research or
other expenses necessary to
reproduce,replace,or restore lost
"proprietary programs".
c.Data Records --
1)Cost of Reproduction --The value
of "data records"will be based on the
cost of reproduction from duplicate
copies.The cost of reproduction
includes,but is not limited to,the cost
of labor to copy or transcribe from
duplicate copies.
2)If Duplicate Copies Do Not Exist --
If duplicate copies do not exist,the
value of "data records"will be based
on the cost of research or other
expenses necessary to reproduce,
replace,or restore lost files,
documents,and records.
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d.Media --The value of "media"will be
based on the cost to repair or replace the
"media"with material of the same kind or
quality.
3.Pair or Set --
a.Reasonable Proportion of Value --The
value of a lost or damaged article which
is part of a pair or set is based on a
reasonable proportion of the value of the
entire pair or set.The loss is not
considered a total loss of the pair or set.
b.Provision Does Not Apply To Software
--The Pair or Set provision does not
apply to "software"that comes in sets.If
part of a "software"set cannot be
replaced,the loss is considered a total
loss of the set.
4.Loss To Parts --The value of a lost or
damaged part of an item that consists of
several parts when it is complete is based on
the value of only the lost or damaged part or
the cost to repair or replace it.
5.Earnings --
a.Determining An Earnings Loss --In
determining an earnings loss "we"
consider:
1)the experience of "your""business"
before the loss and the probable
experience during the time of
interruption had no loss occurred;
2)"your"continuing operating expenses
normally incurred by "your"
"business",including,but not limited
to,payroll expense necessary to
resume "business"to a similar level
of service that existed before the
occurrence of direct physical loss or
damage;and
3)pertinent sources of information and
reports including:
a)"your"accounting procedures
and financial records;
b)bills,invoices,and other
vouchers;
c)contracts,deeds,and liens;
d)reports on feasibility and status;
and
e)records documenting "your"
budget and marketing objectives
and results.
b.Conditions For Non-Payment of
Increased Loss --"We"do not pay for
any increase in loss due to "your"failure
to use reasonable efforts to resume all or
part of "your""business".This includes
making use of other locations and
property to reduce the loss.
c.Loss Payment If You Do Not Resume
Your Business --If "your""business"is
not resumed as soon as possible,or if it
is not resumed at all,the value of loss
payment is based on the period of time it
would have otherwise taken to resume
"your""business"as soon as possible.
6.Extra Expense --In determining extra
expenses that "you"have incurred,"we"
consider the salvage value of any property
bought for temporary use during the
"restoration period"and it will be deducted
from the amount of loss determined for extra
expense.
HOW MUCH WE PAY
1.Insurable Interest --"We"do not cover more
than "your"insurable interest in any property.
2.Earthquake Period --All earthquakes or
volcanic eruptions that occur within a 168-
hour period will be considered a single event.
This 168-hour period is not limited by the
policy expiration.
3.Deductible --"We"pay only that part of
"your"loss over the deductible amount
indicated on the "schedule of coverages"in
any one occurrence.
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The deductible may be shown as either an
amount or a percentage.When shown as a
percentage,the deductible is that percentage
of the value of the covered property at the
time of the loss.
4.Loss Settlement Terms --Subject to
paragraphs 1.,2.,3.,5.,6.,7.,8.,9.,and 10.
under How Much We Pay,"we"pay the
lesser of:
a.the amount determined under Valuation;
b.the cost to repair,replace,or rebuild the
property with material of like kind and
quality to the extent practicable;or
c.the "limit"that applies to the covered
property.
5.Coinsurance,Hardware,and Software --
a.When Coinsurance Applies --"We"
only pay a part of the loss if the "limit"is
less than the percentage of the value of
the covered property that is indicated on
the "schedule of coverages".
b.How We Determine Our Part of The
Loss --"Our"part of the loss is
determined using the following steps:
1)multiply the percent indicated on the
"schedule of coverages"by the value
of the covered property at the time of
loss;
2)divide the "limit"for covered property
by the result determined in 5.a.
above;
3)multiply the total amount of loss,after
the application of any deductible,by
the result determined in 5.b.above.
The most "we"pay is the amount
determined in 5.c.above or the "limit",
whichever is less."We"do not pay any
remaining part of the loss.
c.If There Is More Than One Limit --If
there is more than one "limit"indicated on
the "schedule of coverages"for this
coverage part,this procedure applies
separately to each "limit".
d.If There Is Only One Limit --If there is
only one "limit"indicated on the "schedule
of coverages"for this coverage,this
procedure applies to the total of all
covered property to which the "limit"
applies.
e.When Coinsurance Does Not Apply --
Conditions for coinsurance do not apply
unless a coinsurance percentage is
indicated on the "schedule of coverages".
6.Coinsurance,Income Coverage Part --
a.When Coinsurance Applies --"We"pay
only a part of the loss if the "limit"is less
than the coinsurance percentage
multiplied by the sum of:
1)"your"net income (net profit or loss
before income taxes);and
2)continuing operating expenses
projected for the 12 months following the
inception of this policy or the last
previous anniversary date of this policy
(whichever is later),normally earned by
"your""business".
b.How We Determine Our Part of The
Loss --"Our"part of the loss is
determined using the following steps:
1)multiply the coinsurance percentage
by the sum of "your"net income and
continuing operating expenses
projected for the 12 months following
the inception of this policy or the last
previous anniversary date of this
policy;
2)divide the "limit"by the figure
determined in 1)above;
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3)multiply the total amount of loss by
the figure determined in 2)above.
"We"pay the amount determined in 3)
above or the "limit",whichever is less.
"We"do not pay any remaining part of
the loss.
c.When Coinsurance Does Not Apply --
Conditions for coinsurance do not apply:
1)unless a coinsurance percentage is
indicated on the "schedule of
coverages";and
2)to coverage for extra expense.
7.Insurance Under More Than One
Coverage --If more than one coverage of
this policy insures the same loss,"we"pay no
more than the actual claim,loss,or damage
sustained.
8.Insurance Under More Than One Policy --
a.Proportional Share --"You"may have
another policy subject to the same
"terms"as this policy.If "you"do,"we"will
pay "our"share of the covered loss."Our"
share is the proportion that the applicable
"limit"under this policy bears to the "limit"
of all policies covering on the same
basis.
b.Excess Amount --If there is another
policy covering the same loss,other than
that described above,"we"pay only for
the amount of covered loss in excess of
the amount due from that other policy,
whether "you"can collect on it or not.But
"we"do not pay more than the applicable
"limit".
9.Income Coverage Limit --"We"pay no
more than the Income Coverage "limit"
indicated on the "schedule of coverages"for
any one loss.Payment for earnings and extra
expense combined does not exceed the
"limit".
10.Waiting Period --
a.Waiting Period Limitation --If an
Income Coverage waiting period is
indicated on the "schedule of coverages",
"we"do not pay for "your"loss of
earnings until after the first 24 hours
(unless otherwise indicated on the
"schedule of coverages")following the
direct physical loss of or damage to
covered property caused by a covered
peril.
This waiting period does not apply to
extra expenses that "you"incur.
b.Waiting Period Limitation For Civil
Authority --As regards coverage under
Interruption by Civil Authority,coverage
under this extension begins:
1)for earnings,24 hours (unless
otherwise indicated on the "schedule
of coverages")after the time the
order is issued and ends 30
consecutive days and 24 hours from
the date of the order;and
2)for extra expense,immediately after
the time the order is issued,and
ends 30 consecutive days and 24
hours from the date of the order.
c.Other Waiting Period Limitations --
The waiting period described under Off
Premises Utility Service Interruption and
Virus and Hacking Coverage is not
deleted nor replaced by the terms of this
provision.
LOSS PAYMENT
1.Loss Payment Options --
a.Our Options --In the event of loss
covered by this coverage form,"we"have
the following options:
1)pay the value of the lost or damaged
property;
AAIS
IM 7201 10 02
Page 22 of 24
Copyright,American Association of Insurance Services,Inc.,2002
2)pay the cost of repairing or replacing
the lost or damaged property;
3)rebuild,repair,or replace the
property with other property of
equivalent kind and quality,to the
extent practicable,within a
reasonable time;or
4)take all or any part of the property at
the agreed or appraised value.
b.Notice of Our Intent To Rebuild,
Repair,or Replace --"We"must give
"you"notice of "our"intent to rebuild,
repair,or replace within 30 days after
receipt of a duly executed proof of loss.
2.Your Losses --
a.Adjustment and Payment of Loss --
"We"adjust all losses with "you".
Payment will be made to "you"unless
another loss payee is named in the
policy.
b.Conditions For Payment of Loss --An
insured loss will be payable 30 days after:
1)a satisfactory proof of loss is
received;and
2)the amount of the loss has been
established either by written
agreement with "you"or the filing of
an appraisal award with "us".
3.Property of Others --
a.Adjustment and Payment of Loss To
Property of Others --Losses to property
of others may be adjusted with and paid
to:
1)"you"on behalf of the owner;or
2)the owner.
b.We Do Not Have To Pay You If We Pay
The Owner --If "we"pay the owner,"we"
do not have to pay "you"."We"may also
choose to defend any suits arising from
the owners at "our"expense.
OTHER CONDITIONS
1.Appraisal --If "you"and "we"do not agree
on the amount of the loss or the actual cash
value of covered property,either party may
demand that these amounts be determined
by appraisal.
If either makes a written demand for
appraisal,each will select a competent,
independent appraiser and notify the other of
the appraiser's identity within 20 days of
receipt of the written demand.The two
appraisers will then select a competent,
impartial umpire.If the two appraisers are
unable to agree upon an umpire within 15
days,"you"or "we"can ask a judge of a court
of record in the state where the property is
located to select an umpire.
The appraisers will then determine and state
separately the amount of each loss.
The appraisers will also determine the value
of covered property items at the time of the
loss,if requested.
If the appraisers submit a written report of
any agreement to "us",the amount agreed
upon will be the amount of the loss.If the
appraisers fail to agree within a reasonable
time,they will submit only their differences to
the umpire.Written agreement so itemized
and signed by any two of these three sets the
amount of the loss.
Each appraiser will be paid by the party
selecting that appraiser.Other expenses of
the appraisal and the compensation of the
umpire will be paid equally by "you"and "us".
2.Income Coverage (Appraisal)--If "you"and
"we"do not agree on the amount of net
income (net profit or loss before income
taxes),payroll expense,and operating
expenses,these amounts may be
determined by appraisal in accordance with
the provisions described above under 1.
Appraisal.
AAIS
IM 7201 10 02
Page 23 of 24
Copyright,American Association of Insurance Services,Inc.,2002
3.Benefit To Others --Insurance under this
coverage will not directly or indirectly benefit
anyone having custody of "your"property.
4.Conformity With Statute --When a
condition of this coverage is in conflict with an
applicable law,that condition is amended to
conform to that law.
5.Estates --This provision applies only if the
insured is an individual.
a.Your Death --On "your"death,"we"
cover the following as an insured:
1)the person who has custody of "your"
property until a legal representative is
qualified and appointed;or
2)"your"legal representative.
This person or organization is an insured
only with respect to property covered by
this coverage.
b.Policy Period Is Not Extended --This
coverage does not extend past the policy
period indicated on the declarations.
6.Misrepresentation,Concealment,or Fraud
--This coverage is void as to "you"and any
other insured if,before or after a loss:
a."you"or any other insured have willfully
concealed or misrepresented:
1)a material fact or circumstance that
relates to this insurance or the
subject thereof;or
2)"your"interest herein.
b.there has been fraud or false swearing by
"you"or any other insured with regard to
a matter that relates to this insurance or
the subject thereof.
7.Policy Period --"We"pay for a covered loss
that occurs during the policy period.
8.Recoveries --If "we"pay "you"for the loss
and lost or damaged property is recovered,or
payment is made by those responsible for the
loss,the following provisions apply:
a."you"must notify "us"promptly if "you"
recover property or receive payment;
b."we"must notify "you"promptly if "we"
recover property or receive payment;
c.any recovery expenses incurred by either
are reimbursed first;
d."you"may keep the recovered property
but "you"must refund to "us"the amount
of the claim paid,or any lesser amount to
which "we"agree;and
e.if the claim paid is less than the agreed
loss due to a deductible or other limiting
"terms"of this policy,any recovery will be
pro rated between "you"and "us"based
on "our"respective interest in the loss.
9.Restoration of Limits --Except as indicated
under Virus and Hacking Coverage,a loss
"we"pay under this coverage does not
reduce the applicable "limits".
10.Subrogation --If "we"pay for a loss,"we"
may require "you"to assign to "us""your"
right of recovery against others."You"must
do all that is necessary to secure "our"rights.
"We"do not pay for a loss if "you"impair this
right to recover.
"You"may waive "your"right to recover from
others in writing before a loss occurs.
11.Suit Against Us --No one may bring a legal
action against "us"under this coverage
unless:
a.all of the "terms"of this coverage have
been complied with;and
AAIS
IM 7201 10 02
Page 24 of 24
Copyright,American Association of Insurance Services,Inc.,2002
b.the suit has been brought within two
years after "you"first have knowledge of
the loss.
If any applicable law makes this limitation
invalid,then suit must begin within the
shortest period permitted by law.
12.Territorial Limits --"We"cover property
while it is in the United States of America,its
territories and possessions,Canada,and
Puerto Rico.
IM 7201 10 02
(The entries required to complete this schedule
will be shown below or on the "schedule of coverages".)
DESCRIBED PREMISES
Loc.
No.LOCATIONS
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
Check if applicable:
[]Attach Additional Locations Schedule to schedule more locations
AAIS POLICY NUMBER
IM 7206 01 12
Page 1 of 6
COMPUTER COVERAGE
SCHEDULE OF COVERAGES
Copyright, American Association of Insurance Services, Inc., 2012
MKLM3IM0049643
1 1000 Biscayne Blvd, Miami Shores, FL 33138
LOCATION LIMITS
"Programs and Applications"
Loc.and
No."Hardware""Media"Income Coverage
Income Coverage Options (check one)
[ ]Earnings and Extra Expense
[ ]Extra Expense only
[ ]Income Coverage Not Provided
$$$
$$$
$$$
$$$
$$$
$$$
$$$
$$$
$$$
$$$
AAIS
IM 7206 01 12
Page 2 of 6
Copyright, American Association of Insurance Services, Inc., 2012
1 94,790 not covered not covered
X
COVERAGE EXTENSIONS "Limits"
Additional Debris Removal Expenses $______________
Emergency Removal __________ days
Emergency Removal Expenses $______________
Electrical and Power Supply Disturbance ______________
--500 Feet Limitation (check one)
[ ]Not Waived
[ ]Waived
Fraud and Deceit $______________
Mechanical Breakdown Coverage ______________
SUPPLEMENTAL COVERAGES
Acquired Locations $______________
Earthquake Coverage (check one)
[ ]Coverage Provided
[ ]Coverage Not Provided
[ ]Refer To Earthquake, Flood and Sewer Backup
Endorsement
Flood Coverage (check one)
[ ]Coverage Provided
[ ]Coverage Not Provided
[ ]Refer To Earthquake, Flood and Sewer Backup
Endorsement
Newly Purchased or Leased Hardware $______________
Off-Site Computers $______________
Pollutant Cleanup and Removal $______________
Property In Transit $______________
Proprietary Programs and Data Records $______________
AAIS
IM 7206 01 12
Page 3 of 6
Copyright, American Association of Insurance Services, Inc., 2012
X
Included
X
X
SUPPLEMENTAL COVERAGES (cont.) "Limits"
Rewards $______________
Sewer Backup (check one)
[ ]Coverage Provided
[ ]Coverage Not Provided
[ ]Refer To Earthquake, Flood and Sewer Backup
Endorsement
Software Storage $______________
Virus and Hacking Coverage
-Limit Any One Occurrence $______________
-Limit Each Separate 12 month Period $______________
INCOME COVERAGE EXTENSIONS
Interruption by Civil Authority _____ days
Period of Loss Extension _____ days
SUPPLEMENTAL INCOME COVERAGES
Acquired Locations $______________
Earthquake Coverage (check one)
[ ]Coverage Provided
[ ]Coverage Not Provided
[ ]Refer To Earthquake, Flood and Sewer Backup
Endorsement
Flood Coverage (check one)
[ ]Coverage Provided
[ ]Coverage Not Provided
[ ]Refer To Earthquake, Flood and Sewer Backup
Endorsement
AAIS
IM 7206 01 12
Page 4 of 6
Copyright, American Association of Insurance Services, Inc., 2012
X
X
X
SUPPLEMENTAL INCOME COVERAGES (cont.)
"Limits"
Off Premises Utility Service Interruption
-Limit $______________
[ ]Overhead Transmission Lines Excluded
(check if applicable)
-Waiting Period _____ hours
Property In Transit $______________
Sewer Backup (check one)
[ ]Coverage Provided
[ ]Coverage Not Provided
[ ]Refer To Earthquake, Flood and Sewer Backup
Endorsement
Virus and Hacking Coverage
-Limit Any One Occurrence $______________
-Limit Each Separate 12 month Period $______________
-Waiting Period _____ hours
DEDUCTIBLE
Deductible Amount
For all covered perils unless a
different deductible is indicated below $______________
Earthquake and Volcanic Eruption $______________
"Flood"$______________
"Mechanical Breakdown", "Electrical
Disturbance", and "Power Supply Disturbance"$______________
AAIS
IM 7206 01 12
Page 5 of 6
Copyright, American Association of Insurance Services, Inc., 2012
X
1,000*
1,000*
x
COINSURANCE
"Hardware", "Media", and "Programs and Applications"
Income Coverage
[ ]Not Applicable
[ ]100%[ ] 90%[ ] 80%[ ] Other ______%
COVERAGE OPTION
Valuation (check one)
[ ]Actual Cash Value Applies
[ ]Replacement Cost
Income Coverage Waiting Period (check one)
[ ]Not Applicable
[ ]Waiting Period _____ hours
[ ]Not Applicable
[ ]100%[ ] 90%[ ] 80%[ ] Other ______%
ADDITIONAL INFORMATION
AAIS
IM 7206 01 12
Page 6 of 6
Copyright, American Association of Insurance Services, Inc., 2012
IM 7206 01 12
X
X
X
X
*Deductible $1,000; except $2,500 or 5% of the
total insurable value, whichever is greater, for
Wind/Hail.
Copyright,American Association of Insurance Services,Inc.,2004
AAIS This endorsement changes
IM 7854 04 04 the Inland Marine Coverage
Page 1 of 1 --PLEASE READ THIS CAREFULLY --
LOSS PAYABLE OPTIONS
If indicated on the Loss Payable Schedule,the
following conditions apply to the property
described on the schedule.The following
conditions apply in addition to the policy "terms"
which are contained in the Inland Marine
Coverage(s).
LOSS PAYABLE
Any loss will be adjusted with "you"and will be
payable to "you"and the loss payee described on
the schedule as "your"and their interests appear.
LENDER'S LOSS PAYABLE
Any loss will be payable to "you"and the loss
payee described on the schedule as interests
appear.If more than one loss payee is named,
they will be paid in order of precedence.
The insurance for the loss payee continues in
effect even when "your"insurance may be void
because of "your"acts,neglect,or failure to
comply with the coverage "terms".The insurance
for the loss payee does not continue in effect if
the loss payee is aware of changes in ownership
or substantial increase in risk and does not notify
"us".
If "we"cancel this policy,"we"notify the loss
payee at least ten days before the effective date
of cancellation if "we"cancel for "your"
nonpayment of premium,or 30 days before the
effective date of cancellation if "we"cancel for
any other reason.
"We"may request payment of the premium from
the loss payee,if "you"fail to pay the premium.
If "we"pay the loss payee for a loss where "your"
insurance may be void,the loss payee's right to
collect that portion of the debt from "you"then
belongs to "us".This does not affect the loss
payee's right to collect the remainder of the debt
from "you".As an alternative,"we"may pay the
loss payee the remaining principal and accrued
interest in return for a full assignment of the loss
payee's interest and any instruments given as
security for the debt.
If "we"choose not to renew this policy,"we"give
written notice to the loss payee at least ten days
before the expiration date of this policy.
CONTRACT OF SALE
Any loss will be adjusted with "you"and will be
payable to "you"and the loss payee described on
the schedule as "your"and their interests appear.
The loss payee shown on the schedule is a
person or organization "you"have entered into a
contract with for the sale of covered property.
When covered property is the subject of a
contract of sale,the word "you"also means the
loss payee.
IM 7854 04 04
AAIS This endorsement changes POLICY NUMBER
IM 7860 11 12 the Inland Marine Coverage
Page 1 of 3 -- PLEASE READ THIS CAREFULLY --
EARTH MOVEMENT, FLOOD, AND SEWER BACKUP EXCLUSIONS
(The entries required to complete this endorsement
will be shown below or on the "schedule of coverages".)
SCHEDULE
Indicate if applicable:
[ ]Earth Movement Exclusion
[ ]Flood Exclusion
[ ]Sewer, Septic Tank, Sump, Or Drain Backup And
Water Below The Surface Exclusion
DEFINITIONS
1.The following definitions are added to the
Inland Marine Coverage Part to which this
endorsement is attached.
a."Earth movement" means:
1)The movement of the ground, soil,
sediments, substrates, or strata
whether the movement is caused by
an act of nature or is manmade,
including but not limited to:
a)earthquake including aftershocks,
liquefaction, or ground
displacement associated with
earthquake;
b)eruption, explosion, or effusion of
a volcano;
c)shaking or ground rupture before,
during or after a volcanic
eruption;
d)landslide;
e)mine subsidence whether or not
the manmade mine is currently in
use; or
f)any other ground movement,
including sinking (other than
"sinkhole collapse"), shifting,
contraction, or rising of the
ground including, but not limited
to:
(1)erosion, expansion,
shrinking;
(2)freezing or thawing;
(3)soil compaction; and
(4)movement caused by water
under the surface of the
ground
that cause cracking, settling,
tilting, leaning, or shifting of
covered property.
2) The movement of the ground, soil,
sediments, substrates, or strata
resulting from any act, error or
omission including but not limited to:
a)construction or excavation
activities, regardless of whether
or not occurring under covered
property and regardless of
whether the construction or
excavation was being
performed at "your" request or
for "your" benefit;
Copyright, American Association of Insurance Services, Inc., 2012
MKLM3IM0049643
X
X
X
b)blasting or vibration from any
source;
c)any process for removing gas;
oil; minerals; water; steam; or
any other natural resource,
substance, or material from
below the surface of the ground
including, but not limited to,
hydraulic fracturing (fracking),
mining, drilling, or geothermal
energy extraction;
d)water injection below the
surface of the ground, whether
wastewater from hydraulic
fracturing or any other source or
water injected into underground
rock for the purpose of creating
geothermal energy; or
e)carbon sequestration,
biosequestration or any other
process for removing carbon
dioxide or other forms of carbon
from the atmosphere and
placed it in an underground
reservoir, underground geologic
formations or any other
underground storage technique.
b."Flood" means an overflowing or
inundation by water of an area that was
previously and normally dry or not
covered by water, whether caused
artificially or naturally, by human or
animal forces or by an act of nature.
"Flood" includes, but is not limited to:
1)overflow of inland or tidal waters,
waves, tidal waves, or tsunamis, or
spray that results from any of these,
all whether driven by wind or not,
including but not limited to storm
surge;
2)unusual and rapid accumulation or
runoff of surface waters from any
source; or
3)mudslides or mudflows if caused by:
a)unusual and rapid accumulation
or runoff of surface waters or
waves; or
b)currents of water exceeding
anticipated cyclical levels.
2.Unless otherwise defined, the following
definition is added to the Inland Marine
Coverage Part to which this endorsement is
attached.
"Volcanic action" means airborne volcanic
blast or airborne shock waves; ash, dust, or
particulate matter; or lava flow.
"Volcanic action" does not include the cost
to remove ash, dust, or particulate matter
that does not cause direct physical loss or
damage to the covered property.
ADDITIONAL PERILS EXCLUDED
If indicated on the schedule above or on the
"schedule of coverages", "we" do not pay for
loss or damage caused directly or indirectly by,
or consisting of, one or more of the following
excluded causes, events, or conditions. Such
loss or damage is excluded regardless of other
causes, events, or conditions that contribute in
any sequence to or aggravate the loss, whether
such causes, events, or conditions act to
produce the loss before, at the same time as, or
after the excluded causes, events, or conditions.
1.Earth Movement -- Any "earth movement"
whether natural or manmade and regardless
of cause and regardless of whether or not
the cause of the "earth movement":
a.originated at the covered property; or
b.was being performed at "your" request
or for "your" benefit.
However, if eruption, explosion, or effusion
of a volcano results in "volcanic action",
"we" will pay for the loss or damage caused
by that "volcanic action".
If "earth movement" results in fire, "we" will
pay for the loss or damage caused by that
fire. If "earth movement" (other than
eruption, explosion, or effusion of a volcano)
results in explosion, "we" will pay for the
loss or damage caused by that explosion.
.
AAIS
IM 7860 11 12
Page 2 of 3
Copyright, American Association of Insurance Services, Inc., 2012
This exclusion does not apply to covered
property while in transit if property in transit
is covered under this Inland Marine
Coverage Part.
2.Flood -- "Flood
"We" also do not cover waterborne material
carried or otherwise moved by "flood",
whether or not driven by wind, including
storm surge, or material carried or otherwise
moved by mudslide or mudflow.
However, if "flood" results in fire, explosion,
or sprinkler leakage, "we" will pay for the
loss or damage caused by that fire,
explosion, or sprinkler leakage.
This exclusion does not apply to covered
property while in transit if property in transit
is covered under this Inland Marine
Coverage Part.
3.Sewer, Septic Tank, Sump, Or Drain
Backup And Water Below The Surface --
a.Water or waterborne material that backs
up, overflows or is otherwise discharged
through a sewer or drain, sump or septic
tank, eaves trough or downspout; or
b.water or waterborne material below the
surface of the ground, whether naturally
or artificially occurring, including but not
limited to water or waterborne material
that exerts pressure on or flows, seeps,
or leaks through or into a covered
building or structure, sidewalk, driveway,
foundation, swimming pool, or other
structure.
But if sewer, drain, sump, septic tank, eaves
trough, or downspout backup and water or
waterborne material below the surface
results in fire, explosion, or sprinkler
leakage, "we" cover the loss or damage
caused by that fire, explosion, or sprinkler
leakage.
This exclusion does not apply to covered
property while in transit if property in transit
is covered under this Inland Marine
Coverage Part.
IM 7860 11 12
Copyright, American Association of Insurance Services, Inc., 2012
AAIS
IM 7860 11 12
Page 3 of 3
(The entries required to complete this schedule
will be shown below or on the "schedule of coverages".)
Indicate applicable provision:
[ ]Loss Payable
[ ]Lender's Loss Payable
[ ]Contract of Sale
SCHEDULE
Location Covered Name and Address
Number Address Property of Loss Payee
AAIS POLICY NUMBER
IM 7902 01 12
Page 1 of 1
LOSS PAYABLE SCHEDULE
IM 7902 01 12
Copyright, American Association of Insurance Services, Inc., 2012
MKLM3IM0049643
X
Blanket coverage applies for Loss Payees and/or Additional Insureds as listed on Certificates of
Insurance issued by the Agent/Broker and on file at their location.
(The entries required to complete this endorsement
will be shown below or on the "schedule of coverages".)
Reporting Period -- (check one)
[ ]Monthly
[ ]Quarterly
[ ]Annual
Additional Premium Due After Expiration -- When the premium for the coverage provided by this policy
is based upon reports of value, any additional premium owed to "us" is due on the due date that appears
on the billing notice.
Adjustment Period -- (check one)
[ ]Monthly
[ ]Quarterly
[ ]Annual
Reports (check one)
[ ]Receipts, Sales, Other Information -- (check one)
[ ]Gross Receipts
[ ]Sales
[ ]Other (describe other information below)
[ ]Values (describe property)
Rates and Premium --
Rate (per $100)$
Deposit Premium $
Minimum Premium $
AAIS POLICY NUMBER
IM 7905 01 12
Page 1 of 1
REPORTING SCHEDULE
IM 7905 01 12
Copyright, American Association of Insurance Services, Inc., 2012
MKLM3IM0049643
X
X
X Scheduled Equipment Values
.712
___________________________________
We take the total schedule at inception and compare it to the total schedule
at expiration and adjust it on the difference in values at one half (1/2) the
equipment rate.
$ 1.1875
All Other Equipment Golf Carts and Personal Property of Others
10,533
8,500