Specimen - Hiscox · 2017. 9. 26. · Specimen Commercial Property Coverage Section Policy wording...

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Commercial Property Coverage Section

Policy wording

HISCOX-#8027253-v1-Commercial_Property_Coverage_Section of 25

The terms and conditions of the Entertainment Policy Jacket and the following terms

and conditions all apply to this Coverage Section.

I. WHAT IS COVERED

We will pay for the direct physical loss of or damage to buildings or contents caused by an occurrence, to which this Coverage Section applies. The loss or damage must occur at, or within 1,000 feet of, the premises stated in the Declarations, unless otherwise stated.

Additional Coverage If a Limit is stated in the Declarations, or in HOW MUCH WE WILL PAY, we will also pay you for a loss you sustain caused by an occurrence, to which this Coverage Section applies, for:

Accounts Receivable A. 1. amounts due from your customers that you are not able to collect;

2. interest on any loan that is required to offset amounts you are unable to collect pending our payment of such amounts;

3. reasonable and necessary collection expenses above your normal collection expenses; and

4. other reasonable and necessary expenses you incur to reproduce your accounts receivable,

that result from direct physical loss of or damage to your accounts receivable that occurs at or within 1,000 feet of the premises stated in the Declarations, unless otherwise stated.

Computer Property B. the direct physical loss of or damage to computer property that occurs at or within 1,000 feet of the premises stated in the Declarations, unless otherwise stated.

Computer Virus – Hacking Event

C. the direct physical loss of or damage to computer media or computer data caused by:

1. illegal or malicious entry resulting in unauthorized access or use of a computer or telecommunications system; or

2. a computer virus directed against software, data, computer systems or telecommunications systems, intended for the purpose of fraud, nuisance, spying or malicious tampering or destruction,

which results in functions that distort, corrupt, manipulate, copy, delete, destroy or slow down such computer media or computer data.

Debris Removal D. the reasonable and necessary costs you incur to demolish and remove debris as a result of direct physical loss of or damage to:

1. building, contents, computer property, accounts receivable, valuable papers, fine arts, or personal property of employees at the premises stated in the Declarations;

2. outdoor trees, shrubs, plants or lawns owned by you at the premises stated in the Declarations. However, we will not pay for outdoor trees, shrubs, plants or lawns held for sale by you or any growing crops; or

3. contents, building components, accounts receivable, valuable papers or fine arts which are temporarily at a premises not stated in the Declarations.

Discharged Fire Protection Equipment

E. the costs you incur to refill your discharged fire protection equipment whether or not there is direct physical loss or damage to your building, contents, and computer property.

Exhibition, Fair or Trade Show

F. the direct physical loss of or damage to contents, fine arts, or computer property while at or in transit to or from any exhibition, fair or trade show.

Extra Expense G. the reasonable and necessary extra expense you incur due to the actual or potential impairment of your normal business operations during the period of

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restoration caused by or resulting from direct physical loss of or damage to building, contents or computer property covered by this Coverage Section.

Fine Arts H. the direct physical loss of or damage to fine arts that occurs at or within 1,000 feet of the premises stated in the Declarations, unless otherwise stated.

Fire Department Service Charges

I. the charges you incur under any contract or agreement that was in effect at the time of the direct physical loss or damage, or are required to pay by governmental ordinance, if the fire department is called to save or protect your building, contents, accounts receivable, fine arts or valuable papers from physical loss or damage to which this Coverage Section applies.

In Transit J. 1. the direct physical loss or damage to contents, computer property and fine arts while in transit; and

2. the cost of research and other reasonable expenses necessary to reproduce, replace or restore valuable papers or the information contained in or on such records, when such records have suffered direct physical loss or damage as a result of a loss that occurs in transit.

Installation K. the direct physical loss of or damage to contents while: 1. at a job site or temporarily warehoused elsewhere, and: a. awaiting or during installation; b. awaiting or during tests; or c. awaiting acceptance by the buyer; or

2. in transit to or from such job site or temporary warehouse.

However, we will not pay for contents that are not a part of the installation, tools, or contractors’ equipment.

This coverage ends when the earliest of the following occurs:

1. your interest in the contents ceases;

2. the buyer accepts the contents;

3. the contents are put to use for their intended purpose; or

4. this policy is no longer in force.

Inventory or Appraisal L. the reasonable cost of any inventory or appraisal that we require from you to determine the extent of direct physical loss or damage to building, contents, computer property, accounts receivable, fine arts, valuable papers, personal property of employees, or outdoor trees, shrubs, plants or lawns. However, we will not pay for costs:

1. you incur for any,

a. insurance agent or broker;

b. public adjuster, or

c. attorney

or their employee’s, representatives or consultants; or

2. related to an Appraisal proceeding pursuant to the GENERAL CONDITIONS contained in the Entertainment Policy Jacket.

Leasehold Interest – Undamaged Tenant Improvements and Betterments

M. the unamortized value of undamaged tenant improvements and betterments when your lease is canceled pursuant to a valid condition of your lease, due to direct physical loss of or damage to building or contents.

Loss Prevention Expenses

N. the reasonable and necessary costs you incur to protect building or contents at the premises stated in the Declarations from imminent covered direct physical loss or damage.

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To the extent practicable, you must notify us of your intent to incur such costs before you take any loss prevention action. In any event, you must notify us within 48 hours after you have taken any such loss prevention action.

Money and Securities O. the direct physical loss to money and securities:

1. inside the premises stated in the Declarations or banking premises resulting directly from:

a. theft committed by a person present inside such premises; or

b. disappearance or destruction; and

2. outside the premises stated in the Declarations in the care and custody of a messenger or an armored motor vehicle company resulting directly from theft, disappearance or destruction,

to your deprivation.

However this coverage does not apply to:

1. accounting, mathematical or record-keeping errors;

2. loss of or damage to manuscripts, records, accounts, media, microfilm or tapes;

3. loss of income, interest or dividends;

4. any fees, costs or expenses you incur to pay:

a. to investigate or establish the existence or amount of any loss or damage; or

b. to prosecute or defend any legal proceeding or claim, whether or not any such proceeding or claim results or would result in loss or damage covered under this Money and Securities coverage;

5. loss or damage caused by or resulting from fire to property of others that you hold as a pledge or collateral;

6 loss or damage caused by or resulting from kidnapping/ransom or other extortion payments made to any person as a result of threat to do:

a. bodily harm to any person; or

b. damage to the premises or other property owned by you or held by you in any capacity; and

7 loss or damage caused by or resulting from the giving or surrendering of money or securities in any exchange or purchase.

Outdoor Trees, Shrubs, Plants or Lawns

P. damage to outdoor trees, shrubs, plants or lawns, but only if caused by or resulting from fire, lightning, explosion, riot or civil commotion, aircraft or self-propelled missiles. However, we will not pay for outdoor trees, shrubs, plants or lawns grown commercially or held for sale by you or for any growing crops.

Personal Property of Employees

Q. the direct physical loss of or damage to personal property of employees: 1. occurring at or within 1,000 feet of the premises stated in the Declarations; 2. occurring at any of your job sites or in transit to or from any of your job

sites. Our payment for such loss will not exceed $2,500 for any one employee or

$10,000 in the aggregate for any one event, regardless of the number of employees affected.

Pollutant Cleanup Or Removal

R. the extra expenses you incur due to the cleanup or removal of pollutants from any land, water or air, either inside or at the premises stated in the Declarations, if discharge, escape, migration, release or seepage of such pollutant is caused by direct physical loss or damage caused by an

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occurrence at a covered location.

These costs will be paid only if they are reported to us in writing as soon as practicable, but in no event later than 180 days of the date the direct physical loss or damage occurs which resulted in the discharge, dispersal, seepage, migration, release or escape of the pollutants.

However, we will not pay for the costs to test for, monitor, or assess the existence, concentration, or effect of pollutants. But we will pay for testing which is performed in the course of removing pollutants from land or water when such removal is covered by this additional coverage.

Preservation of Property

S. the costs you reasonably and necessarily incur to move building components, contents, computer equipment, computer media, accounts receivable, fine arts or valuable papers to or from their original location and/or temporarily store them at another location, to preserve them from imminent covered loss or damage.

Processing Water T. the costs you incur to replace water that is used in your processing operations, at a premises stated in the Declarations, and contained in any above-ground tank, processing equipment, or any associated above-ground piping when such water has been released or rendered unusable for its intended purpose as a result of direct physical loss or damage to such tank, equipment or piping caused by or resulting from a loss covered by this Coverage Section. However, this does not apply to fire protection equipment.

Newly Acquired Premises

U. the damage to a building under construction at existing or newly acquired premises; and the direct physical loss of or damage to building, contents, computer equipment, telephone systems at newly acquired premises. However, we will not pay for:

1. stock; 2. contents at a fair, trade show or exhibition; and 3. property of others that is temporarily in your possession in the course of:

a. installing or performing work on such property; or b. in the course of your manufacturing or wholesaling activities.

Sewer Backup or Overflow

V. the direct physical loss of or damage to covered property caused by water, water-borne material, or sewage that backs up or overflows from a:

1. sewer; 2. drain; or 3. sump, sump pump, sump pump system or a similar system or device

designed to prevent overflow, seepage, discharge or leakage of subsurface water, water-borne material, or sewage.

Physical Loss or Damage From Collapse

W. 1. the direct physical loss or damage to covered property, caused by abrupt collapse of a building that is covered under this Coverage Section, if such collapse is caused by one or more of the following:

a. building decay that is hidden from view, unless the presence of such decay is known to you prior to such collapse;

b. insect or vermin damage that is hidden from view, unless the presence of such damage is known to you prior to such collapse;

c. use of defective materials or methods in construction, remodeling or renovation if the abrupt collapse occurs during the course of the construction, remodeling or renovation; or

d. use of defective materials or methods in construction, remodeling or renovation if the abrupt collapse occurs after the construction, remodeling or renovation is complete, but only if the collapse is caused in part by:

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(1) a cause of loss listed in W.1.a or W.1.b above; (2) one or more of the specified causes of loss;

(3) breakage of building glass; (4) weight of people or contents; or

(5) weight of rain that collects on a roof. 2. the direct physical loss of or damage to: a. outdoor radio or television antennas, including satellite dishes, and their

lead-in wiring, masts or towers; b. awnings, gutters and downspouts; c. yard fixtures; d. outdoor swimming pools; e. fences; f. piers, wharves and docks; g. beach or diving platforms or appurtenances; h. retaining walls; and i. walks, roadways and other paved surfaces,

if an abrupt collapse is caused by a cause of loss listed in W.1.d.i through iv above, but only if such property is insured under this Coverage Section and the loss or damage is a direct result of the abrupt collapse of a building insured under this Coverage Section.

3. the direct physical loss of or damage to contents within a building, if such contents abruptly fall down or cave in and such collapse is not the result of abrupt collapse. However, this additional coverage only applies if such collapse is caused by one or more of the following:

a. collapse of contents was caused by a cause of loss listed in W.1.a through W.1.d;

b. the contents which collapses is inside a building; and c. the property which collapses is not:

(1) outdoor radio or television antennas, including satellite dishes, and their lead-in wiring, masts or towers;

(2) awnings, gutters and downspouts; (3) yard fixtures; (4) outdoor swimming pools; (5) fences; (6) piers, wharves and docks; (7) beach or diving platforms or appurtenances; (8) retaining walls; and (9) walks, roadways and other paved surfaces, regardless of whether that kind of property is considered to be contents

or building.

4. However, this additional coverage does not apply to:

a. a building or any part of a building that is in danger of falling down or caving in;

b. a part of a building that is standing, even if it has separated from another part of the building;

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c. a building that is standing, or any part of a building that is standing, even if it shows evidence of cracking, bulging, sagging, bending, leaning, settling, shrinkage or expansion; or

d. to contents:

(1) if marring and/or scratching is the only damage to the contents caused by the abrupt collapse; or

(2) that have not abruptly fallen down or caved in, even if the contents show evidence of cracking, bulging, sagging, bending, leaning, settling, shrinkage or expansion.

Temporary Location X. the direct physical loss of or damage to building components, contents, computer property, accounts receivable, fine arts or valuable papers which are temporarily at a premises not stated in the Declarations. However, we will not pay for:

1. salespersons’ samples;

2. contents, computer property or fine arts while at any exhibition, fair or trade show;

3. contents, computer property, accounts receivable, fine arts or valuable papers at a premises that you own, lease or operate;

4. contents at a job site or temporarily warehoused elsewhere awaiting installation at the job site;

5. contents, computer property, accounts receivable, fine arts or valuable papers, while in transit.

Valuable Papers Y. the cost of research and other reasonable expenses necessary to reproduce, replace or restore valuable papers or the information contained in or on such records, when those records have suffered direct physical loss or damage at, or within 1,000 feet of, the premises stated in the Declarations.

II. HOW MUCH WE WILL PAY

We will pay up to the applicable Limit(s) of Insurance as stated in the Declarations or stated below for each of the coverages for which a Limit of Insurance is stated in the Declarations, provided you have first paid the deductible stated in the Declarations.

How much we will pay will be determined as follows:

Accounts Receivable A. Accounts Receivable will be valued based on the amount of accounts receivable that are outstanding at the time of loss that is covered by this Coverage Section. We will calculate the amount of the outstanding accounts receivable by:

1. determining the amount of all outstanding accounts receivable at the end of the same month in the year immediately preceding the year in which the loss occurred; then

2. determining your total gross sales of goods and services for the 12-month period immediately preceding the month in which the loss occurred; then

3. determining your total gross sales of goods and services for the 12-month period immediately preceding the same month in the year immediately preceding the year in which the loss occurred; and then

4. calculating the percentage increase or decrease of step 2 over step 3.

The total amount of accounts receivable as of the last day of the month in which the loss occurs will be the amount determined in step 4. The established monthly amount of accounts receivable will be adjusted for the normal fluctuation in the amount of accounts receivable.

We will then deduct from the total amount of accounts receivable thereby

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determined: 1. the amount of any accounts evidenced by records not lost or damaged; 2. any other amounts you are able to establish or collect; 3. an amount to allow for probable bad debts, returns, discounts and

allowances which you normally would have had, based on historical averages;

4. all unearned interest and service charges; and 5. amounts based on all other relevant information.

If you recover the amount of any accounts receivable that were included in the amount of the paid loss, you will return the recovered amount to us, up to the total amount of the paid loss. You will keep the amount of any accounts receivable you recover in excess of the amount of the paid loss. You must take reasonable measures to determine and collect the accounts receivable to mitigate your accounts receivable loss.

Building B. Building(s) will be valued as of the date of loss on an actual cash value or replacement cost basis as stated in the Property Coverage Details of the Declarations.

1. If actual cash value basis is stated for a partial or total loss to a covered building, how much we will pay will be the lowest amount of the following:

a. the cost to repair the building; or

b. the sum of:

(1) actual cash value of the damaged portion of the building, and

(2) the loss in value of the undamaged portion of the building as a consequence of enforcement of an ordinance or law that requires demolition of undamaged parts of the same building. However, this does not apply to any ordinance or law that you were required to, but failed to comply with before the loss.

2. If replacement cost basis is stated, how much we will pay will be the lowest amount of the following:

a. the cost to repair the building; or

b. the replacement cost of the building.

If the lowest amount above is replacement cost, we will pay for the actual cash value as of the date of loss and then pay the difference between actual cash value and replacement cost if you replace the building within two years from the date of loss.

If a covered building is rebuilt at a new location, we will only pay the amount that would have been spent if the building had been rebuilt at the original location.

If there is an ordinance or law in effect at the time of loss or damage that regulates zoning, land use or construction of a building, and if you:

a. repair or replace the building as soon as reasonably possible, but in no event more than two years from the date of loss, the valuation will include:

(1) the replacement cost of the damaged and undamaged portion of the building; or

(2) the cost to demolish and clear the site of the undamaged portion of the building; and

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(3) the increased cost to repair or replace the building to the same general size and use, to the minimum standards of such ordinance or law, except we will not include any costs:

(a) for land, water or air, either inside or outside of a building;

(b) for paved or concrete surfaces, retaining walls, foundations or supports below the surface of the lowest floor or basement, unless specifically covered by this Coverage Section, or outdoor trees, shrubs, plants or lawns;

(c) incurred outside the legal property boundary of the premises stated in the Declarations; or

(d) for any ordinance or law that you were required to, but failed to, comply with before the loss.

b. do not repair or replace the building, the valuation will include:

(1) the actual cash value of the damaged portion of the building; or

(2) the cost to demolish and clear the site of the undamaged portion of the building, as a consequence of enforcement of any ordinance or law that requires demolition of undamaged parts of the same building.

When direct physical loss or damage is caused by or results from both:

(3) a loss covered under this Coverage Section; and

(4) a loss not covered under this Coverage Section,

the valuation will not include the increased costs to comply with an ordinance or law attributable to the loss not covered by this Coverage Section. Instead, the valuation will be based on that portion of such costs equal to the proportion that the covered direct physical loss or damage bears to the total direct physical loss or damage, not including increased costs to comply with an ordinance or law, unless the ordinance or law applies solely to that portion of the building which suffered the covered direct physical loss or damage.

The valuation will not include any costs for undamaged tenant improvements and betterments that are payable under the Additional Coverage for Leasehold Interest – Undamaged Tenant Improvement and Betterments.

Computer Property C. 1. Computer equipment and telephone systems and their components will be valued on a replacement cost basis as of the date of loss. How much we will pay will be the lowest amount of the following:

a. the cost of repairing the computer equipment and telephone systems and their components;

b. the replacement cost of the computer equipment; and telephone systems and their components; or

c. the amount for which you are legally liable for the computer equipment and telephone systems and their components.

If the lowest amount above is replacement cost, we will pay for the actual cash value as of the date of loss and then pay the difference between actual cash value and replacement cost if you replace the computer equipment and telephone systems and their components within two years from the date of the occurrence.

2. Computer media will be valued at no more than the cost of blank materials, plus the reasonable costs you incur for replacing, reproducing, transcribing, or copying the computer data on computer media. If

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computer data are not replaced or reproduced we will consider their value to be the cost of blank materials. We will value the cost of prepackaged software at the cost to replace and reinstall it. However, no coverage is provided for data, hardware or software used in or developed for film or video production.

However, this coverage does not apply to media or media hardware.

Contents D. Contents are subject to the following limitations. Each sublimit stated below is the total limit for loss of or damage to all property in that category caused by any one theft:

1. $2,500 for loss of or damage to fur, fur garments, or garments trimmed with fur;

2. $2,500 for loss of or damage to jewelry, watches, watch movements, jewels, pearls or precious or semi-precious stones, This limitation does not apply to jewelry or watches valued at less than $100 per item;

3. $2,500 for loss of or damage to precious metals, such as bullion, gold, silver, platinum or other precious alloys or metals; and

4. $2,500 for the loss of or damage to live animals, birds and fish.

Contents (including the property covered by limitation) will be valued at the time of loss on a replacement cost basis. How much we will pay will be the lowest amount of the following:

1. the cost of repairing the contents; 2. the replacement cost of the contents; or

3. the amount for which you are legally liable for the personal property of others.

If the lowest amount above is replacement cost, we will pay for the actual cash value as of the date of loss and then pay the difference between actual cash value and replacement cost if you replace the contents within two years from the date of the occurrence.

Debris Removal E. 1. The most we will pay for debris removal is the lesser of:

a. 25% of the covered direct physical loss or damage; or

b. the remaining applicable Limit of Insurance for building, contents, personal property of employees, computer property, accounts receivable, valuable papers, fine arts or outdoor trees, shrubs, plants or lawns stated in the Declarations, after payment of the covered direct physical loss or damage. However, we will not pay for outdoor trees, shrubs, plants or lawns held for sale by you or any growing crops.

2. If the amount in 1 of this provision is insufficient to pay for such debris removal, we will pay up to an additional $10,000 for such remaining debris removal. A higher additional Limit of Insurance may be purchased; in this event, the revised limit will be shown under Debris Removal in the Declarations.

We will also pay up to $1,000 for the costs you incur at each of your covered premises to remove debris of outdoor trees, shrubs or plants that are blown onto your premises by wind, if the wind would be covered by this Coverage Section.

Debris Removal will be paid only if reported to us in writing within 180 days of the date of the direct physical loss or damage to the building, contents, personal property of employees, computer property, accounts receivable, valuable papers, fine arts or outdoor trees, shrubs plants or lawns.

Extra Expense F. We will pay, up to the applicable Limit of Insurance for:

1. your expenses in excess of the amount which normally would have been incurred to conduct your business. We will not be liable for any longer

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period of time than is necessarily required to rebuild, repair or replace the damaged property. This period of time is not limited by the expiration date of the policy;

2. the reasonable costs you incur to expedite repairs to covered property. This includes payment of overtime wages and the extra cost of express or other expedited transportation; and

3. the extra wages you pay your employees for preparing inventories and other loss data for completing your proof of loss.

However, this provision does not apply to any other expenses incurred in preparing or submitting insurance claims.

Fine Arts G. Fine Arts owned by you will be valued based on fair market value as of the date of loss or damage.

Finished Stock and Sold Contents

H. Finished Stock and sold contents completed and awaiting delivery will be valued based on your selling price less the value of discounts and costs you would have incurred. If your branded or labeled stock that is covered property under this Coverage Section is damaged and you do not want to sell it under your brand or label, we will pay the reasonable costs you incur to:

1. stamp “salvage” on the stock or its containers, if the stamp will not physically damage the stock; or

2. remove the brands or labels, if doing so will not physically damage the stock. We will also pay the reasonable costs you incur to re-label the stock or its containers to comply with the law.

However, the most we will pay on a combined total basis for these costs and the value of the damaged property is the Limit of Insurance for such property.

Inflation Guard I. If an Inflation Guard percentage is stated in the Declarations, the Limit of Insurance for property to which the additional coverage applies will automatically increase by that percentage. The amount of increase will be calculated as follows:

1. the Limit of Insurance that applies on the date of loss, multiplied by 2. the applicable inflation guard annual rate as stated in the Declarations,

expressed as a decimal (example: 8% is .08), multiplied by 3. the number of days since the beginning of the current policy year or the

effective date of the most recent policy change amending the Limit of Insurance, divided by 365.

FOR EXAMPLE: Applicable Limit of Insurance = $100,000

Annual inflation guard percentage rate = 8%

The number of days since the beginning of the policy year, or last change in limits =

146

The amount of increase is: $100,000 x .08 x 146 / 365 =

$3,200

Money and Securities K. We will pay for loss of money: 1. at the face value of the money, if the loss or damage involves United States

currency; or 2. the United States dollar equivalent of a foreign currency based on the rate of

exchange as stated in the Wall Street Journal unless otherwise agreed and endorsed to the Policy in writing by us,

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on the day the loss is discovered.

Securities will be valued at the close of business on the day the loss is discovered. We may, at our option, do any of the following:

1. pay the market value of such securities;

2. replace such securities with similar or equivalent securities but you must assign to us your rights, title, and interest in, and to, any securities we replace; or

3. pay the costs of any lost securities bond required in connection with issuing duplicates of such securities. However, we will only pay up to the cost charged for a bond penalty amount not exceeding the lesser of the:

a. market value of the securities at the close of business on the day the loss was discovered; or

b. the Limit of Insurance applicable to the securities.

We will consider an act or series of related acts that result in a covered loss to be one loss, regardless of how many people committed such act or series of related acts.

Pollutant Cleanup or Removal

L. Pollutant Cleanup or Removal will be valued based on the sum of all covered costs that are incurred in any one annual policy period regardless of the amount or type of property covered, the number of locations affected or the number of losses that occur, and regardless of whether this additional coverage appears in any other Coverage Section(s) that form a part of this Policy.

Stock in Process M. Stock in process will be valued based on the cost of raw materials and your direct costs incurred in processing such stock as of the date of loss or damage.

Undamaged Tenant Improvements and Betterments

N. Undamaged tenant improvements and betterments will be valued based on:

1. the cost to replace undamaged tenant improvements and betterments at the time of loss or damage at another site if you commence replacement within 24 months following the termination of your lease; or

2. the unamortized portion of their original cost to you if you do not replace undamaged tenant improvements and betterments,

however, we will not pay for lost or damaged tenant improvements and betterments which are paid by others.

Valuable Papers O. Your valuable papers will be valued based on the cost of blank materials for reproducing the records and for the reasonable cost of labor actually incurred to transcribe or copy the records. Valuable papers of others will be valued on the same basis as your valuable papers; however, we will not pay more than the amount for which you are contractually liable.

III. WHAT IS NOT COVERED

We will not make payment:

Acts or Decisions A. for any occurrence caused by or resulting from an act or decision, including the failure to act or decide, of any person, group, organization or government unit;

Audit B. for any loss discovered by an audit or inventory count with respect to accounts receivable coverage. However, in the event the loss is established by independent means, you may use an audit or inventory count to calculate the loss;

Boiler & Machinery C. for any damage caused by or resulting from:

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1. an explosion of a steam boiler, steam pipe, steam turbine, or steam engine that you own, operate or lease;

2. breakdown, but not explosion, of hot water boilers or any other equipment for heating water; or

3. a steam boiler, steam pipe, steam turbine or steam engine that you own, operate or lease when such damage is caused by or results from any condition or event within such equipment.

However, this exclusion will not apply to:

1. any damage caused by a resulting fire or explosion;

2. any damage caused by or resulting from the explosion of accumulated gas or unconsumed fuel within a furnace or any fired vessel, or within the flues or passages through which the gases of combustion pass; or

3. any damage to accounts receivable, fine arts or valuable papers;

Bookkeeping D. for any loss arising out of bookkeeping, accounting or billing errors or omissions with respect to accounts receivable coverage;

Defects or Errors E. for any direct physical loss of or damage to property caused by or resulting from:

1. defects or errors in the materials, design, development, distribution, processing, manufacturing, workmanship, testing, installation, alteration, maintenance, or repair of building, contents, computer property or any Additional Coverage that has a Limit of Insurance stated in the Declarations.

2. errors or omissions in the development of, programming of, or instructions to: a. computer software, data or other information that is in electronic form; b. machines including computer equipment, telephone systems or

devices; or c. electronic data which is faulty, inadequate, or defective for the use

intended at the time of loss.

However, this exclusion will not apply to any damage to accounts receivable, fine arts, money, securities or valuable papers or to computer data recovery costs;

Disappearance F. for loss of any property covered by this Coverage Section that is missing where:

1. the only evidence of a loss is shortage discovered upon taking inventory; or

2. there is no physical evidence to show what happened to the property.

However, this exclusion will not apply to the loss of Money or Securities;

Earth Movement G. for loss caused by or resulting from any earth movement, whether natural or man-made, including the following:

1. earthquake, including any earth sinking, rising, or shifting related to such event;

2. landslide, including any earth sinking, rising or shifting related to such event;

3. mine subsidence, meaning subsidence of a man-made mine, whether or not mining activity has ceased;

4. earth sinking, rising, or shifting, including soil conditions which cause settling, cracking, or other disarrangement of foundations or other parts of realty. Earth sinking does not include sinkhole collapse; and

5. volcanic eruption, explosion or effusion; however, if volcanic eruption, explosion or effusion results in fire, building glass breakage, or volcanic

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action, we will pay for the damage caused by that fire, building glass breakage or volcanic action;

All volcanic eruptions that occur within any 168 hour period will constitute a single event.

Such damage is not covered regardless of any other cause or event that contributes concurrently or in any sequence to the loss;

Electrical Damage H. for loss or damage caused by or resulting from:

1. artificially generated electrical current, including electrical arcing that damages electrical devices, appliances or wires; or

2. electrical or magnetic injury disturbance or erasing of electronic recordings.

This exclusion does not apply to accounts receivable, fine arts or valuable papers or to computer data recovery costs;

Failure to Mitigate I. for any increase in loss or damage caused by or resulting from your failure to take every reasonable step to protect the property from further damage and minimize your loss;

Flood or Water J. for loss or damage caused by or resulting from: 1. flood, including without limitation: a. waves, tidal water or tidal waves; b. the rising of bodies of water and streams; c. the overflowing or breaking of boundaries of water or streams; or d. spray from any type of water, regardless of whether driven by wind; 2. mudslide or mudflow;

3. water which accumulates or flows on the surface of the ground, including without limitation, that created by man made causes, or by natural causes such as rain, melted snow, or rising springs, but which follows no defined watercourse and does not gather into or form a natural body of water;

4. water, water-borne material or sewage that backs up, flows, overflows, leaks, seeps, or discharges from a sewer or drain;

5. water, water-borne material or sewage that backs up, flows, overflows, leaks, seeps or discharges from a sump, sump pump, sump pump system, or a similar device designed to prevent overflow, seepage, discharge, or leakage of subsurface water, water-borne material, or sewage; or

6. water below the surface of the ground, water-borne material or sewage that exerts pressure on, flows, or seeps through a foundation, wall, basement, floor, door, window or other opening, sidewalk, driveway, or other paved surface.

Such loss is excluded regardless of any other cause or event that contributes concurrently or in any sequence to the loss.

If fire, explosion or sprinkler leakage results, we will pay for that resulting loss.

However, this exclusion does not apply to the Sewer Backup or Overflow Additional Coverage;

Fungus or Bacteria K. for loss or damage caused by or resulting from fungus or bacteria. This includes the costs to test for, monitor, abate, mitigate, remove, dispose of, or remediate fungus or bacteria.

Such loss or damage is not covered regardless of any other cause or event that contributes concurrently or in any sequence to the loss;

Fur, Jewelry and L. for loss of or damage to fur, fur garments, garments trimmed with fur, jewelry,

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Precious Metals watches, watch movements, jewels, pearls, precious or semi-precious stones, precious metals such as bullion, gold, silver, platinum or other precious alloys or metals, except as specifically stated in Contents above, in which case the coverage is limited to the amounts stated in that provision;

Governmental Action M. for loss or damage caused by or resulting from:

1. seizure or confiscation of property by any government or public authority; or

2. destruction of property under quarantine or customs regulation.

Such loss is excluded regardless of any other cause or event that contributes concurrently or in any sequence to any loss. However, this exclusion will not apply to property destroyed by a civil authority in order to stop the actual spread of fire when such fire is otherwise covered by this agreement.

This exclusion applies regardless of whether this loss results in widespread damage or affects a substantial area;

Insects or Animals N. for loss or damage caused by or resulting from nesting, infestation, discharge or release of waste products or secretions by insects, birds, rodents or other animals.

This does not apply to ensuing loss or damage caused by or resulting from a peril not otherwise excluded;

Intentional Acts O. caused intentionally by or at your direction. An intentional act is one in which consequences could have been foreseen by a reasonable person;

Loss of Market P. for loss or damage caused by delay, loss of use or loss of market;

Mechanical Breakdown

Q. for loss or damage caused by mechanical breakdown, including rupture or bursting caused by centrifugal force; but if mechanical breakdown results in an elevator collision, we will pay for the loss or damage caused by the elevator collision. This exclusion does not apply to accounts receivable, computer property, fine arts or valuable papers;

Planning, Design, Materials or Maintenance

R. for loss or damage caused by or resulting from faulty, inadequate, defective or lack of:

1. planning, zoning, development, surveying, siting; 2. design, specifications, plans, workmanship, repairs, construction,

renovations, remodeling, grading, compaction; 3. materials used in repair, construction, renovation or remodeling; or 4. maintenance, of all or part of any property on or off any premises stated on the Declarations.

If a loss results that is not otherwise excluded under this Coverage Section, we will pay for that resulting loss; however, we will not pay for:

1. any cost of correcting or making good the fault, inadequacy, or defect itself, including any cost incurred to tear down, tear out, repair or replace any part of any property to correct the fault, inadequacy or defect; or

2. any resulting loss or damage by a peril covered under this Coverage Section to the property that has the fault, inadequacy or defect until the fault, inadequacy or defect is corrected;

Pollutants S. for any cost, loss, damages or expenses caused by, arising out of or resulting from:

1. the actual, alleged or threatened discharge, dispersal, seepage, migration, release or escape of pollutants;

2. pollution, contamination or toxic exposure, including but not limited to any pollution, contamination or toxic exposure caused by or arising out of the

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following: a. noise; b. electromagnetic fields; c. radio waves; d. nuclear radiation; or e. radioactive contamination; 3. any increase in costs, loss or damage associated with the enforcement of

any ordinance or law that requires you or others to test for, clean up, remove, contain, treat, detoxify or neutralize, or in any way respond to or assess the affects of pollutants, regardless of any other cause or event that directly or indirectly contributes concurrently to, contributes in any sequence to, or worsens the loss or damage, even if such other cause or event would otherwise be covered under this Coverage Section.

However, this exclusion does not apply to the extent coverage is provided in the Pollutant Cleanup or Removal provision under WHAT IS COVERED.

Pollutant Debris Removal

T. for any damaged property that must be removed only because of the enforcement of any ordinance, regulation, order or law that requires you or anyone else to:

1. test for, monitor, clean-up, remove; 2. contain, treat, detoxify, neutralize; or 3. in any way respond to or assess the effects of pollutants.

We also will not pay for the debris removal or property that is a pollutant and must be removed from water or land. Limited coverage for pollutant cleanup or removal is provided in the Pollutant Cleanup or Removal Additional Coverage.

Power or Other Utility Failure

U. for loss or damage caused by the failure or interruption of power, communication, water or other utility service supplied to the described premises, however caused, if the failure occurs away from the premises stated in the Declarations;

Property Not Covered V. for loss of or damage to any of the following:

1. aircraft, satellites and spacecraft;

2. contraband, or property in the course of illegal transportation or trade;

3. foundations, including those for boilers, engines, and other machinery, that are below the basement floor, or below ground level if there is no basement;

4. growing crops, trees, shrubs, lawns or plants grown commercially or held for sale;

5. land and land values, water, roadways, bridges, walks, patios or other paved surfaces;

6. money, money orders, lottery tickets, food stamps, securities, accounts, bills, notes, and other evidence of debt except to the extent covered under Valuable Papers and Money and Securities;

7. land motor vehicles designed for travel on public roads and for transporting people and property whether licensed or not;

8. pilings, piers, docks, wharves, and bulkheads;

9. retaining walls that are not part of the building;

10. the costs of excavations, grading, backfilling or filling;

11. underground tanks, flues, pipes or drains and their contents; and

12. watercraft while on water, including any motors, equipment, and accessories used with such watercraft;

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Property Stored in the Open

W. for loss or damage arising out of rain, wind, sleet, snow, frost or hail, whether driven by wind or not, to property stored outside and which you have not taken reasonable steps to protect;

Seepage or Leakage X. for loss or damage caused by or resulting from water or steam that seeps or leaks, or the presence of condensation of humidity, moisture or vapor, that occurs over a period of 14 days or more;

Settling Y. for loss or damage caused by or resulting from settling, cracking, shrinking, bulging or expansion of paved or concrete surfaces, foundations, walls, floors, roofs, ceilings and swimming pools;

Spoilage Z. for loss or damage arising out of:

1. spoilage of; or

2. loss caused by or resulting from spoilage to,

contents including perishable goods.

Voluntary Parting AA. for loss caused by or resulting from covered property that is voluntarily sold, or that is given to someone who obtains it by trick, device, false pretense or other fraudulent or otherwise dishonest scheme;

Wear and Tear & Deterioration

BB. for loss or damage caused by or resulting from: 1. wear and tear; 2. deterioration, decay, fungus or bacteria, mold, wet or dry rot, rust or any

other corrosion; 3. changes in flavor, color, texture or finish; 4. the inherent nature of the property; or for loss or damage to contents resulting from:

1. dampness or dryness of atmosphere; 2. changes in or extremes of temperature; 3. marring or scratching; or 4. shrinkage, evaporation, or loss of weight. However, the above do not apply to ensuing loss or damage caused by or

resulting from a peril not otherwise excluded under this Coverage Section;

Weather Conditions CC. for loss or damage caused by or resulting from weather conditions when such conditions contribute in any way with a cause or event that is not covered because of the following exclusions:

1. earth movement; 2. flood; 3. water damage; 4. governmental action; 5. nuclear activity; 6. ordinances, regulations or laws; 7. utility failure; or 8. war. The above do not apply to ensuing loss or damage caused by or resulting from

a peril not otherwise excluded under this Coverage Section;

Weather Damage DD. for damage to the interior of any building or to the contents in the building, caused by or resulting from rain, snow, hail, sleet, ice, sand or dust whether driven by wind or not, unless:

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1. the building first sustains damage caused by an occurrence to which this Coverage Section applies to its roof or walls through which the rain, snow, sleet, ice, sand or dust enters; or

2. the damage is caused by or results from thawing of snow, sleet, or ice on the building.

IV. SPECIAL CONDITIONS

Agreed Value A. If the Declarations indicate Agreed Value as the applicable valuation, the Coinsurance provision stated below does not apply to covered property to which Agreed Value applies. We will pay no more for loss of or damage to that property than the proportion that the Limit of Insurance for such property bears to the Agreed Value stated in the Declarations.

B. If the expiration date for the covered property to which Agreed Value applies is not extended, Coinsurance is reinstated and the Agreed Value provision expires.

C. The terms of Agreed Value apply only to loss or damage that occurs:

1. on or after the effective date of the Agreed Value; and

2. before the Agreed Value expiration date stated in the Declarations or the expiration date for this Policy, whichever occurs first.

Coinsurance Coinsurance applies to covered property only when a coinsurance percentage for that covered property is stated in the Declarations. If the Declarations shows a coinsurance percentage for the covered property, you are required to carry a Limit of Insurance no less than that percentage (coinsurance percentage stated in the Declarations) of 100% of the value of the covered property (actual cash value or replacement value, depending on which coverage valuation is stated on the Declarations.

FOR EXAMPLE: Value of Building at time of loss (including building components)

$100,000

Coinsurance Percentage (80%) X .80 Required Limit of Insurance (No Less Than) $80,000

If the Limit of Insurance you carry is less than the required Limits of Insurance, we will not pay the full amount of any loss.

We will determine what we will pay and what your share of the loss will be using the following formula:

A. calculate the Required Limit of Insurance, based on the applicable coinsurance percentage; then

B. divide the Limit of Insurance carried by the Required Limit of Insurance; then

C. multiply the total amount of covered loss (without consideration for demolition, debris removal costs, and the increased costs to comply with an ordinance or law attributable to the loss), before the application of any deductible, by the figure determined by step B; and then

D. subtract the applicable deductible from the figure determined in step C.

The amount determined in step D is the most we will pay for loss or damage, not to exceed the applicable Limit of Insurance stated in the Declarations.

Coverage Territory Coverage applies in the United States including the District of Columbia.

Deductible We will not pay for loss or damage arising out of any one occurrence until the amount

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of loss or damage exceeds the deductible stated in the Declarations. We will then pay the amount of loss or damage in excess of the deductible, up to the applicable Limit of Insurance.

If more than one deductible is applicable under this Coverage Section, we will only apply the highest deductible that is applicable.

If this policy is excess because more specific other insurance applies, we will still apply all applicable deductible amounts under this Coverage Section regardless of whether you can collect on the other insurance. Excess or overlapping coverages under this agreement may not be used to satisfy the deductible requirements of the more specific other insurance.

Loss Payee For covered property (other than building), in which both you and the loss payee stated in the Declarations have an insurable interest, we will:

A. adjust losses with you; and B. pay any amounts due under this Coverage Section jointly to you and the loss

payee, as interests may appear.

Loss Payment Provision

A. In the event you make a claim for loss or damage to owned property covered by this Policy, at our option we will either:

1. pay the covered value of the lost or damaged covered property; 2. pay the cost of repairing or replacing the lost or damaged covered property

plus any reduction in value of the repaired item; 3. take all or any part of the covered property at an agreed or appraised value;

or 4. repair or replace the covered property with other such property of

comparable material and quality for the same use or occupancy.

B. Any owned property that is part of a pair or set will be valued based on fair market value at the time of loss or damage. You may choose one of the following methods of payment:

1. we will pay the fair market value of the entire pair or set. You must give us the remaining pieces;

2. we will pay the reasonable cost to repair the damaged pieces and you may keep the undamaged pieces. If the pair or set, with the repaired pieces, has a lower value than it had prior to the loss or damage, we will also pay the difference between these values. However, we will not pay more than the fair market value the pair or set had prior to the loss or damage; or

3. we will pay the fair market value at the time of the loss or damage to pieces that cannot be found or repaired. You may keep the undamaged pieces. If the undamaged pieces have a reduced value, we will pay the difference between such reduced value and the value they had prior to the loss or damage of the other pieces. However, we will not pay more than the fair market value the pair or set had prior to the loss or damage.

C. In the event that any owned property that is covered on a replacement cost basis cannot be replaced due to obsolescence, we will pay no more than the actual cash value of such property.

Property not owned by you will be valued on the same basis as property owned by you, but we will not pay more than the amount for which you are legally liable. In no event shall we pay more than the applicable Limit of Insurance as stated in the Declarations.

D. We will not pay the cost to repair any defect to a system or appliance from which water, other liquid, powder or molten material escapes. But we will pay the cost to repair or replace damaged parts of fire-extinguishing equipment if the damage:

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1. Results in discharge of any substance from an automatic fire protection system; or

2. Is directly caused by freezing. However, this limitation does not apply to Business Income Coverage or to

Extra Expense coverage.

Mortgagee We will pay for loss or damage to building jointly to you and the mortgage holder stated in the Declarations, as interests may appear;

however, your mortgage holder has the right to receive loss payment, even if:

A. you fail to comply with the terms of this Coverage Section; or

B. your mortgage holder starts foreclosure or similar actions on the building.

If we make loss payment to your mortgage holder where you have failed to comply with the terms of this Coverage Section, you must reimburse us to the extent we pay the mortgage holder. Your mortgage holder will still have the right to receive the balance of the mortgage indebtedness from you. We also have the right to take over your mortgage after making a loss payment to the mortgage holder. If we do, you will pay your remaining mortgage indebtedness to us. If you fail to pay your premium, we may request it from your mortgage holder. The mortgage holder must notify us of any change in ownership known to the mortgage holder. If we cancel this Policy, we will give written notice to the mortgage holder at least:

A. 20 days before the effective date of cancellation if we cancel for your non-payment of premium; or

B. 60 days before the effective date of cancellation, if we cancel for any other reason.

To satisfy the requirements of any mortgage holder stated in the Declarations, copies of policies or certified copies of policies may be sent to such mortgage holder. If we send a copy of this policy to mortgage holders this will not be deemed to increase the Limits of Insurance stated in the Declarations or otherwise change the terms of this Coverage Section. Nor shall such copy be deemed to be a duplicate or contributing insurance.

Newly Acquired Premises Term of Coverage

Coverage for newly acquired premises applies until the first of the following occurs:

A. you report to us the value of the building, contents and computer equipment at the newly acquired premises to us;

B. 180 days pass from the date you acquire the premises or construction begins on the building; or

C. this Policy expires.

We will charge you an additional premium for the reported values from the date you acquire the premises or construction begins on the building.

Other Insurance The Other Insurance provision in the GENERAL TERMS of the Entertainment Policy Jacket is replaced by the following:

A. You may have other insurance subject to the same plan, terms, conditions and provisions as the insurance under this Coverage Section. If so, we will pay our share of the covered loss or damage. Our share is the proportion that the applicable Limit of Insurance under this Coverage Section bears to the Limits of Insurance of all insurance covering on the same basis; and

B. If there is other insurance covering the same loss or damage, other than that described in A. above, we will pay only for the amount of covered loss or damage in excess of the amount due from that other insurance, whether you can collect on it or not. But we will not pay more than the applicable Limit of

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Insurance. If the same loss is covered under more than one Coverage Section or policy issued by

us or a company affiliated with us, the maximum Limit of Insurance that applies under all policies shall not exceed the highest limit that applies under any one policy.

This condition does not apply to the Personal Property of Employees additional coverage. Instead, we will apply coverage for Personal Property of Employees on a primary basis without regard to other valid or collectible insurance.

Vacancy If you lease part of a covered building, we will consider that part of the building you lease to be vacant when it does not contain enough contents to conduct customary operations. If you own a covered building, or you lease the entire building, we will consider it to be vacant unless at least 31% of its total square footage is:

A. rented to a lessee or sub-lessee and used by such lessee or sub-lessee for residential purposes or to conduct their customary operations; or

B. used by the building owner to conduct customary operations.

We will not consider buildings in the process of renovation or under construction to be vacant.

After 60 consecutive days of vacancy, we will not pay for loss of or damage to covered property due to the following, regardless of whether coverage is provided under this Coverage Section:

A. vandalism; B. sprinkler leakage, unless the system has been protected against freezing;

C. water damage, except sprinkler leakage as provided in B. above;

D. theft; or

E. attempted theft.

If a covered building is vacant, we will reduce our payment for a covered loss by 15% when such loss occurs after the first 60 consecutive days of vacancy.

V. SPECIAL DEFINITIONS FOR THIS SECTION

Abrupt Collapse Means an abrupt falling down or caving in of a building or any part of a building with the result that the building or part of the building cannot be occupied for its intended purpose.

Accounts Receivable

Means accounting records, including support records such as invoices and accounting records on programs that are either purchased or written on a custom basis, which are regularly used with a computer system, used to control and document the collection of money due from customers.

Actual Cash Value Means the fair market value of the property taking into account the deterioration, depreciation and obsolescence.

Banking Premises Means the interior of that portion of any building occupied by a banking institution or similar safe depository.

Building Means: A. a structure; B. building components;

C. completed additions;

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D. If not covered by other insurance: 1. additions to the structure under construction; and

2. alterations and repairs to the structure.

Building Components:

Means: A. glass forming a part of a structure; B. materials, machinery, equipment, supplies and temporary structures used for

making additions or repairs to a structure; C. outdoor fixtures (including radio and television antennas and satellite dishes); D. outdoor and indoor signs; E. fences; and

F. permanently installed fixtures, machinery and equipment.

Computer Equipment

Means:

A. hardware capable of accepting information, processing it according to a plan, and producing the desired results as well as related peripheral equipment including without limitation, printers, video display monitors, modems, and servers; and

B. air conditioning and fire protection equipment used exclusively in computer operations.

Computer Data Means software, data or other information that is in electronic form.

Computer Media Means software programs that are either purchased or written on a custom basis, which are regularly used with a computer system and the computer data recorded on computer equipment.

Computer Property Means computer equipment, computer media and telephone systems and their component parts that you own or are in your care, custody or control.

Computer Virus Means all types of malware, including but not limited to, computer viruses, computer worms, Trojan horses, rootkits, spyware, dishonest adware and other malicious and unwanted software.

Contents Means: A. all business personal property owned by you and used in your business; B. business personal property in which you have an insurable interest;

C. patterns, molds and dies; D. personal property of others in your care, custody or control;

E. labor, materials and services furnished or arranged by you on personal property of others; and

F. signs, fixtures, glass and other tenant’s improvements and betterments.

However, contents does not include;

1. property for which a separate Limit of Insurance is provided under Additional Coverage; or

2. any collection of film, videotape or high definition video material that is not commercially packaged and sold.

Contractors’ Equipment

Means the contractors’ machinery and equipment, including accessories, tools and spare parts for such, usual to your business which you own, lease or borrow, and for which you are liable. However, for the purpose of this definition, contractors’ equipment does not mean:

A. aircraft or watercraft;

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B. motor vehicles required to be licensed for highway use, except motor vehicles on which your contractors’ machinery or equipment is permanently mounted;

C. property while underground, except while in transit through vehicular or railroad tunnels;

D. office equipment, which is the contents of trailers, unless that equipment is otherwise shown;

E. property while waterborne or while being loaded or unloaded for waterborne transit, except while in transit on public ferries or car floats for hire;

F. property while leased or loaned to others; or

G. property while on any platform anchored, permanently or temporarily, in any body of water.

Discover or Discovered

Means the time when you first become aware of facts which would cause a reasonable person to assume that a loss of a type covered by this Coverage Section has been or will be incurred, regardless of when the act or acts causing or contributing to such loss occurred, even though the exact amount or details of loss may not then be known.

Discover or discovered also means the time when you first receive notice of an actual or potential claim in which it is alleged that you are liable to a third party under circumstances which, if true, would constitute a loss under this Coverage Section.

Earthquake Means earth movement due to seismic geologic activity that causes movement in the earth’s crust.

Extra Expense Means the reasonable and necessary expenses you incur:

A. to continue your business operations over and above the expenses you would have normally incurred had there been no loss that is covered under this Coverage Section; and

B. to repair or replace any property or to research or restore lost information on damaged records or media if such action will reduce any loss we would pay under this Coverage Section.

Fine Arts Means paintings, rare books, manuscripts, pictures, prints, etchings, drawings, tapestries, bronzes, statues, pottery, porcelain, marble and other bona fide works of art or items of rarity or historical value.

Finished Stock Means goods you have manufactured which are in their completed state and ready for sale. Finished stock does not include goods you have manufactured which are in their completed state and ready for sale on the premises of any retail outlet.

Fungus or Bacteria Means: A. any type or form of mold or mildew; B. any other type or form of fungus; C. any type or form of bacterium; or D. any mycotoxin, spore, scent, or byproduct that is produced or released by such

mold, mildew, other fungus or bacterium.

In Transit Means being transported by air, surface or waterborne conveyance when the covered property is more than 1,000 feet away from premises stated in the Declarations and within the coverage territory beginning:

A. after covered property leaves its original location; and B. while covered property is in the exclusive custody and control of you, your

employee, or any carrier,

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and ending when the first of the following occurs: A. the transporting vehicle or other transporting device arrives at the final destination

for the covered property; B. covered property that is unloaded from any transporting vehicle has remained at

any dock, depot, station, or terminal more than 30 days after its arrival; C. covered property in or on any transporting vehicle has remained at any location

for more than 72 hours after its arrival; D. a warehouse receipt is issued for covered property; or E. 1. export shipments are loaded on board any steamer or other watercraft; or 2. ocean marine insurance has begun to cover such property,

whichever occurs first.

For the purposes of this definition: A. transporting vehicle means any self-propelled land vehicle, including any trailer,

regardless of whether connected to a tractor or another trailer; B. carrier means any railroad company, private trucker, public trucker, motor

transportation company, including any connecting ferry, car float, lighter, or air freight company that may be used.

In Transit does not mean: A. property owned by others when you are acting as a carrier for hire; B. import shipments, within the coverage territory, until such time as ocean marine

insurance has ceased to cover such property; C. theft from a transporting vehicle you own, lease or operate unless the property is

taken from a locked area of the transporting vehicle and there are visible signs of forced entry;

D. property in the care of sales personnel, unless you have sold, repaired, or loaned for use such property, and your sales personnel is delivering it to your customer; or

E. property shipped by mail, unless shipped by registered mail.

Inherent Nature Means a latent defect or any quality in the property that causes it to deteriorate or destroy itself.

Library Stock Means any collection of film, videotape or high definition video material. Messenger Means you, any of your partners or members, or any employee while having care

and custody of property outside the premises.

Money Means: A. currency, coins and bank notes in current use and having a face value; and B. travelers checks, registered checks and money orders held for sale to the public.

Normal Business Operations

Means the state that your operations would be in if there had been no loss.

Occurrence Means an accident or unintended event that occurs within the coverage territory and results in loss or damage to which this Coverage Section applies, but first manifests during the policy period.

Operations Means your business activities occurring at your premises immediately prior to the loss, including the tenantability of such premises.

Personal Property of Means contents owned or leased by your employee and in your care, custody or

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Employees control, however, this does not include:

A. vehicles or machines required to be licensed for use on public roads; or B. money or securities in excess of two hundred dollars.

Pollutants Means: A. any solid, liquid, gaseous or thermal irritant or contaminant, including smoke,

vapor, soot, ash, agricultural or industrial smudging, fibers, fumes, acids, alkalis, chemicals and waste. Waste includes materials to be disposed of, recycled, reconditioned or reclaimed;

B. viruses or other pathogens; or C. smog.

Raw Stock Means material in the state in which you receive it for conversion into finished stock.

Replacement Cost Means the cost to replace lost or damaged property, at the time of loss or damage, with property of like kind, quality and utility, but not more than is actually and reasonably spent to repair or replace such property for the same use or occupancy. There is no deduction for deterioration or depreciation.

Salespersons’ Samples

Means contents that are in the custody of any one of your salespersons and used only for sample purposes.

Securities Means negotiable and non-negotiable instruments or contracts representing either money or other property and includes:

A. tokens, tickets, revenue and other stamps (whether represented by actual stamps or unused value in a meter) in current use;

B. evidences of debt issued in connection with credit or charge cards, which are cards not issued by you; and

C. checks that are not travelers or register checks;

however, securities does not include money.

Specified Causes of Loss

Means the following:

Fire; lightning; explosion; windstorm or hail; smoke; aircraft or vehicles; riot or civil commotion; vandalism; leakage from fire-extinguishing equipment; sinkhole collapse; volcanic action; falling objects; weight of snow, ice or sleet; water damage.

A. Sinkhole collapse means the sudden sinking or collapse of land into underground empty spaces created by the action of water on limestone or dolomite. This cause of loss does not include:

1. the cost of filling sinkholes; or

2. sinking or collapse of land into manmade underground cavities.

B. Falling objects does not include loss or damage to:

1. contents in the open; or

2. the interior of a building or structure, or property inside a building or structure, unless the roof or an outside wall of the building or structure is first damaged by a falling object.

C. Water damage means accidental discharge or leakage of water or steam as the direct result of the breaking apart or cracking of a plumbing, heating, air conditioning or other system or appliance (other than a sump system including its related equipment and parts), that is located on the described premises and contains water or steam.

Soil Conditions Includes contraction, expansion, freezing, thawing, erosion, improperly compacted soil, and the action of water or the effects of or lack of water under the ground surface.

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Stock Means:

A. goods held in storage or for sale;

B. raw stock;

C. stock in process;

D. finished stock; or

E. goods held for sale by you or manufactured by you and ready for sale on the premises of any retail outlet,

including supplies used in their packing or shipping.

Stock in Process Means raw stock that has undergone any aging, seasoning, mechanical or other process of manufacture but which has not become finished stock.

Tenant Improvements and Betterments

Means fixtures, alterations, installations or additions:

A. you make to a part of a building you occupy but do not own; and

B. you acquire or make at your expense but cannot legally remove.

Valuable Papers Means inscribed printed or written:

A. documents, manuscripts, records;

B. account books, card index system(s); or

C. deeds, maps, abstracts or mortgages.

Valuable papers include films and tapes and other such materials in or on which specific information is stored. However, it does not include computer property, computer data or library stock.

Volcanic Action Means direct loss or damage resulting from the eruption of a volcano when the loss or damage is caused by:

A. airborne volcanic blast or airborne shockwaves;

B. ash, dust or particulate matter; or

C. lava flow.

Volcanic action does not include the cost to remove ash, dust or particulate matter resulting from volcanic action.

Specimen - Hiscox · 2017. 9. 26. · Specimen Commercial Property Coverage Section Policy wording...

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Transcript of Specimen - Hiscox · 2017. 9. 26. · Specimen Commercial Property Coverage Section Policy wording...