· 2020-05-05 · 1 Charles S. LiMandri, SBN 110841 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19...

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COMPLAINT

Charles S. LiMandri, SBN 110841

Paul M. Jonna, SBN 265389

Jeffrey M. Trissell, SBN 292480

Milan L. Brandon, SBN 326953

LiMANDRI & JONNA LLP

P.O. Box 9120

Rancho Santa Fe, California 92067

Telephone: (858) 759-9930

Facsimile: (858) 759-9938

[email protected]

Attorneys for Plaintiff

MOSTRE EXHIBITS, LLC

SUPERIOR COURT OF THE STATE OF CALIFORNIA

COUNTY OF SAN DIEGO – CENTRAL DIVISION

MOSTRE EXHIBITS, LLC, a Tennessee

Limited Liability Company,

Plaintiff,

v.

SENTINEL INSURANCE COMPANY,

LIMITED, a Connecticut corporation; THE

HARTFORD FINANCIAL SERVICES

GROUP, INC., a Delaware Corporation;

INSURANCE OFFICE OF AMERICA, INC., a

Florida Corporation, d/b/a IOA Insurance

Services, and DOES 1 through 30, Inclusive,

Defendants.

CASE NO.:

IMAGED FILE

COMPLAINT FOR DAMAGES FOR

BREACH OF CONTRACT,

TORTIOUS BREACH OF IMPLIED

COVENANT OF GOOD FAITH AND

FAIR DEALING, DECLARATORY

RELIEF, AND PROFESSIONAL

NEGLIGENCE

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1 COMPLAINT

Plaintiff MOSTRE EXHIBITS, LLCbrings this Complaint against Defendants SENTINEL

INSURANCE COMPANY, LIMITED, THE HARTFORD FINANCIAL SERVICES GROUP,

INC., INSURANCE OFFICE OF AMERICA, INC., d/b/a IOA Insurance Services, and DOES 1

through 30, inclusive (collectively, “Defendants”) as follows:

GENERAL ALLEGATIONS

P A R T I E S

1. Plaintiff MOSTRE EXHIBITS, LLC (“Plaintiff” or “Mostre Exhibits”) is, and

at all times mentioned in this complaint was, a licensed Tennessee Limited Liability Company,

organized and existing under the laws of the State of Tennessee, with its principal places of business

in the County of San Diego at 2449 Cades Way, Suites A & B, Vista, California, 92081 and in

Williamson County, Tennessee at 416 Mary Lindsay Polk Drive, Suite 508, Franklin, Tennessee,

37067 (the “Insured Properties”). Mostre Exhibits specializes in the design, production, and

rental of exhibits for trade shows, corporate environments, retail stores, special events, user

conferences, annual meetings, and outdoor events.

2. Plaintiff is informed and believes, and thereon alleges, that Defendant SENTINEL

INSURANCE COMPANY, LIMITED (“Sentinel”) is, and at all times mentioned in this

complaint was, a licensed Connecticut corporation authorized to do business in California with

offices located in Los Angeles, California. Sentinel issued Hartford Policy No. 72 SBA AP9428 (the

“Policy”) to Mostre Exhibits.

3. Plaintiff is informed and believes, and thereon alleges, that Defendant THE

HARTFORD FINANCIAL SERVICES GROUP, INC. (“Hartford”) is, and at all times mentioned

in this complaint was, a licensed Delaware corporation authorized to do business in

California.Plaintiff is informed and believes, and thereon alleges, that Defendant Sentinel is a wholly

owned subsidiary of Defendant Hartford.

4. Plaintiff is informed and believes, and thereon alleges, that Defendant INSURANCE

OFFICE OF AMERICA, INC., d/b/a IOA Insurance Services (“IOA Insurance Services”) is, and at

all times mentioned in this complaint was, a licensed Florida corporation authorized to do business

in California with offices located in Carlsbad, California. On information and belief, Defendant IOA

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2 COMPLAINT

Insurance Services is an appointed agent of Sentinel.

5. Plaintiff does not presently know the true names and capacities of Defendants named

herein as Does 1 through 30, inclusive. Plaintiff is informed and believes, and thereon alleges, that

each of the Defendants designated herein as a Doe is legally responsible in some manner for the

matters herein alleged, and is legally responsible in some manner for causing the injuries and

damages to Plaintiff as herein alleged. Plaintiff will seek leave of Court to amend this Complaint to

allege said Defendants’ true names and capacities as soon as that information has been ascertained.

6. At all times mentioned herein, each Defendant was the agent and employee of each

and all of the other Defendants and, in performing the acts hereafter alleged, was acting within the

course and scope of such agency and employment. Plaintiff is informed and believes that all of the

wrongful acts alleged herein were authorized and/or ratified by officers, directors or other managerial

agents of Defendants.

J U R I S D I C T I O N A N D V E N U E

7. This Court has jurisdiction over all causes of action asserted in this Complaint

pursuant to article VI,section 10 of the California Constitution and Code of Civil Procedure section

410.10 by virtue of the fact that this is a civil action where the matter in controversy, exclusive of

interest, exceeds $25,000, and because jurisdiction over this case is not given by statute to other trial

courts.

8. Venue is proper in the County of San Diego because the wrongful conduct at issue

occurred within the County of San Diego.

T H E P O L I C Y

9. In or about June 2019, Plaintiff engaged Defendant IOA Insurance Services to

facilitate a renewal of its Business Owner’s Insurance Policy. IOA Insurance Services, through its

web page, promised to “Make the Complex Simple . . . Instead of hoping you have what you need,

get [sic] with an IOA expert. You’ll have peace of mind in knowing you can face whatever lies ahead

with confidence. We’ve got you covered.” Throughout its marketing materials, IOA Insurance

Services holds itself out as a business insurance expert who does not just wait for its clients’ direction

but also makes active recommendations to their clients. Among the products that IOA Insurance

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3 COMPLAINT

Services actively promoted was Business Income Insurance:

When you have an operation that is spread across the country or is very large in size,

you need a business interruption policy. Chances are you have critical operations in

different regions, and when catastrophes or other events occur that hinder or stop

smooth operations, they affect your entire business process . . . Business insurance is

one way to protect your revenue. Examine your unique risks with an IOA advisor to

determine your coverage needs.

A copy IOA Insurance Services’ website is attached hereto and incorporated herein by reference as

Exhibit A.

10. In or around June 2019, Plaintiff retained IOA Insurance Services to act as Plaintiff’s

insurance agent and broker.

11. In or around June 2019, IOA Insurance Services recommended that Plaintiff

consolidate its two separate business policies for its two business locations into a single policy.

Plaintiff specifically requested that IOA Insurance Services obtain a policy that would provide

equivalent coverage to that provided under the original separate policies, including business income

coverage. On the basis of IOA Insurance Services’ claimed expertise, and relying upon an IOA

Insurance Services agent’s recommendation, Plaintiff obtained a policy with Defendant Sentinel

Insurance Company.

12. On information and belief, IOA Insurance Services is an appointed agent of

Defendants Sentinel Insurance Company and The Hartford Financial Services Group, Inc.

13. On information and belief, Defendants Sentinel and Hartford offered a Hartford

Deluxe Policy that provided full coverage for damage caused by viruses. Defendant IOA Insurance

Services did not offer this alternative Policy to Plaintiff at any time.

14. On or about June 25, 2019, by and through Sentinel’s appointed agent, IOA Insurance

Services, Defendant Sentinel Insurance Company issued a renewal of a Spectrum Business Owner’s

Policy, No. 72 SBA AP9428 SC (the “Policy”) to Plaintiff Mostre Exhibits. By and through

Sentinel’s appointed agent, IOA Insurance Services, Plaintiff Mostre Exhibits entered into

this contract of insurance with Sentinel, whereby Mostre Exhibits agreed to make payments

to Sentinel in exchange for Sentinel’s promise to indemnify Mostre Exhibits for losses

including, but not limited to, business income losses incurred at the Insured Propert ies. This

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4 COMPLAINT

policy was in effect from June 25, 2019 to June 25, 2020. A copy of the Policy is attached hereto

and incorporated herein by reference as Exhibit B.

15. The Policy comprises a one-hundred-and-seventy-one (171) page document,

including fifty-one (51) separate forms. In purchasing this voluminous and confusing Policy from

Sentinel and Hartford, Mostre Exhibits sought expansive coverage. Indeed, Mostre Exhibits even

obtained a policy from Defendants with an endorsement for limited coverage for damage arising

from viruses, which is normally excluded. Moreover, like most property policies sold in the United

States, the Policy is an “All-Risk” Commercial Property Policy. This means that all perils which are

not specifically excluded by the Policy are covered. (Garvey v. State Farm Fire & Casualty Co.

(1989) 48 Cal.3d 395, 408.) Nowhere does the Policy list pandemics as excluded perils.

16. The Policy’s Property Coverage Declarations (Form SS 00 02 12 06) state that

Defendant Sentinel agreed to compensate Plaintiff Mostre Exhibits for up to $500,000 of “Actual

Loss Sustained Business Income and Extra Expense” at the impacted location(s). (Exhibit B, p.

15.) The declaration cross-references an endorsement for “Actual Loss Sustained Business Income

& Extra Expense – Specified Limit Coverage” (Form SS 40 60 10 12), permitting for coverage of

actual loss sustained for a period “that occurs within 12 consecutive months after the date of

direct physical loss or physical damage.” (Exhibit B, p. 132, emphasis added.)

17. Prior to June 2019, Plaintiff Mostre Exhibits maintained separate business owner’s

insurance policies for each of its two locations. Each of these policies provided for business income

loss coverage of at least $500,000 for each location, for a combined total of at least $1 million

between the two policies. When Plaintiff engaged Defendant IOA Insurance Services to combine the

two separate policies into the single subject Policy, Plaintiff sought the same, cumulative coverage

it possessed before. Plaintiff thus obtained that coverage under the terms described in Paragraph 13

for total business income coverage of at least $1,000,000 for twelve (12) consecutive months.

18. The Policy also provides for additional “Special Property Coverage” (Form SS 07 07

05) for actual loss of business income “that occurs within 12 consecutive months after the date

of direct physical loss or physical damage” and “is not subject to the Limits of Insurance.”

(Exhibit B, p. 40, emphasis added.) The same form also provides for coverage of actual loss of

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Business Income sustained “when access to [the] ‘scheduled premises’ is specifically prohibited

by order of a civil authority.” (Exhibit B, p. 41, emphasis added.)

19. In addition, the Policy incorporates an endorsement for “Manufacturer’s Stretch”

(Form SS 04 28 09 07), providing that “if Business Income or Extra Expense are provided under

this policy, the most [the insurer] will pay in any one occurrence in subparagraph (3) is

increased from $50,000 to $500,000 in any one occurrence at each premises.” (Exhibit B, p. 104.)

20. Finally, the Policy’s Property Coverage Declarations (Form SS 00 02 12 06) also state

that Plaintiff is entitled to $50,000 in business income coverage for each location, for thirty (30) days,

due to “virus.” (See Exhibit B, pp. 12 & 14.) The declaration cross-references a Form that opaquely

provides for “Limited Fungi, Bacteria, or Virus Coverage” (Form SS 40 93 07 05) that fails to

mention loss of business income under its terms. (See Exhibit B, pp. 134–136.) Nevertheless, the

provision does state that “[w]ith respect to a particular occurrence of loss which results in . . .

virus, we will not pay more than the total of $50,000 unless a higher Limit of Insurance is shown

in the Declarations” (Exhibit B, p. 135, emphasis added.)

21. Under the foregoing provisions, Plaintiff is entitled to at least $500,000 for each

insured location, as provided under the Policy’s declarations (Form SS 00 02 12 06) (see Exhibit B,

p. 15) and the Policy’s endorsement for “Actual Loss Sustained Business Income & Extra Expense

– Specified Limited Coverage (Form SS 40 60 10 12). (See Exhibit B, p. 132.) As such, and

commensurate with Plaintiff’s intent in seeking a combined policy from Defendant IOA Insurance

Services, Plaintiff is entitled to at least $1,000,000 in business income coverage total between the

two insured locations for twelve (12) consecutive months.

22. The policy is currently in full effect, providing property, business personal property,

business income and extra expense, and additional coverages from June 25, 2019 through June 25,

2020.

23. Plaintiff has faithfully paid premiums to Sentinel as required under the terms of its

Policy. Plaintiff has met all terms and conditions set forth in the Policy.

/ / /

/ / /

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6 COMPLAINT

THE LOSS

24. Beginning in March 2020, local and state governments across the country urged their

citizens to act as if they were infected and as if everyone around them was infected with a novel and

highly infectious coronavirus. Under such a guideline, the Insured Properties are, and continue to be,

repeatedly infected by individuals coming and going from the premises until the virus is eliminated

in the region.

25. In or about the early weeks of March 2020, the government, scientific community,

and those personally affected by the virus recognized the coronavirus as a cause of real physical loss

and damage.

26. On March 4, 2020, California Governor Gavin Newsom issued Executive Order N-

45-20 (the “California Emergency Order”), which declared a state of emergency in response to

expected impacts arising from the COVID-19 pandemic. The California Emergency Order required

citizens to heed orders and guidance from the California Department of Health regarding limits on

group size and social distancing.

27. On or about March 11, 2020, in response to the burgeoning COVID-19 pandemic, the

United States barred entry of all foreign nationals who had visited China, Iran, and most European

countries, including Austria, Belgium, Denmark, Estonia, Finland, France, Germany, Hungary, Italy,

and Spain. On March 16, 2020, the ban was extended to include foreign nationals from the United

Kingdom and Ireland. These orders, carried out by civil authorities, severely impacted commercial

enterprises, including trade shows, retail stores, conferences, and special events in Franklin,

Tennessee and San Diego, California.

28. On or about March 19, 2020, California Governor Gavin Newsom issued Executive

Order N-33-20 (the “California Executive Order”) and “order[ed] all individuals living in the State

of California to stay home or at their place of residence” save for those participating in economic

sectors deemed “Essential Critical Infrastructure.” Because trade shows, large gatherings, and

outdoor events were suspended and/or canceled pursuant to Governor Newsom’s Executive Order,

Mostre Exhibits suffered a dramatic surge of cancellations for its services, as well as a disastrous

evaporation of business income.

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29. On or about March 20, 2020, the Federal Government closed its border with Mexico

to “any non-essential travel.” The border with Canada was closed on March, 21, 2020. These closures

further exacerbated damage to Plaintiff’s business.

30. On March 24, 2020, the City of Franklin’s Mayor, Ken Moore, ordered “all businesses

not performing essential services” be closed (the “Franklin Local Order”). The design, production,

and/or rental of exhibits for trade shows, retail establishments, and other events, as well as the trade

shows, establishments, and other events that would seek such exhibits, were not listed among the

enumerated “essential services.”

31. On March 30, 2020, the City of Vista’s Economic Development Director, Kevin Ham,

issued a statement directing “all business within Vista City Limits” to follow the State’s Essential

Critical Business Order and that the City of Vista “will follow up with stricter measures . . . if non-

essential businesses continue to defy the order” (the “Vista Local Order”).

32. On April, 2, 2020, Tennessee Governor William Lee issued Executive Order No. 23

(the “Tennessee Executive Order”), which directed Tennesseans to stay at home unless engaging in

“essential activities” in order to limit exposure to and the spread of coronavirus. Noting “that

COVID-19 is spreading throughout all areas of the State,” the Tennessee Order directed, in relevant

part, that citizens avoid “social gatherings of ten (10) or more people.” The Tennessee Executive

Order also provided a defined list of “Essential Services.” The design, production, and/or rental of

exhibits for trade shows, retail establishments, and other events, as well as the trade shows,

establishments, and other events that would seek such exhibits, were not listed among the enumerated

“essential services.”

33. All of the aforementioned orders, including the California Emergency Order, orders

restricting travel and banning entry by foreign nationals, California Executive Order, Tennessee

Executive Order, Vista Local Order, and Franklin Local Order, are hereinafter collectively referred

to as the “Government Orders.”

34. The global COVID-19 pandemic was exacerbated by the fact that the deadly

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coronavirus physically infects and stays on the surfaces of objects or materials for many days.1 The

virus was also carried into this state by individuals traveling between countries and states who in turn

infected others and the facilities they visited, infecting property in and around the Insured Properties.

35. The Insured Properties are located in Franklin, Tennessee and Vista, California. Both

cities are located in vibrant metropolitan areas that are popular international trade show destinations.

Both cities see many travelers from coronavirus impacted states and countries. As a result of the

Government Orders, and community infection of coronavirus in and around Franklin, Tennessee and

Vista, California, trade shows, corporate environments, retail stores, special events, user

conferences, annual meetings, and outdoor events have been closed or canceled. Moreover, the

combined impacts of these and other actions taken to comply with the Government Orders, as well

as responses to the community infection of coronavirus adjacent to the Insured Properties, have

caused a precipitous decline in business income.

36. On or about March 16, 2020, Plaintiff Mostre Exhibits submitted a claim with

Defendant Sentinel for loss of business income due to the community spread and infection of

coronavirus at the Insured Properties, and the civil response thereto.

THE DENIAL

37. On or about March 16, 2020, Defendants Sentinel and Hartford sent a letter denying

coverage for Mostre Exhibit’s lost business income. Sentinel stated that there was “[n]o direct

physical loss or damage . . . to property at the scheduled premises listed in [the] policy” and that “no

business personal property owned by [the insured] suffered any direct physical loss or damage from

this event.” A copy of the denial letter is attached hereto and incorporated herein by reference as

Exhibit C.

1 Experts have found that coronavirus fomites (infectious pathogens) linger on plastic and stainless steel surfaces “for up to 72 hours.” (Walker, COVID-19 Transmission 'Plausible' on Surfaces, in the Air (Mar. 17, 2020) MedPage Today <https://www.medpagetoday.com/infectiousdisease/ covid19/85466> [as of Apr. 24, 2020].) Because courts have interpreted “direct physical loss” and similar provisions in insurance contracts to include coverage for loss of use of tangible property that is not otherwise physically injured, such prolonged infection, which necessitates the loss of use of the subject property, thus renders any physical loss inflicted by the virus direct and tangible. (See Thee Sombrero, Inc. v. Scottsdale Ins. Co. (2018) 28 Cal.App.5th 729, 733.)

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38. Sentinel’s and Hartford’s position that the community infection of coronavirus caused

“no direct physical loss of or damage to property” is unsupported by case law, both in California and

other jurisdictions. California courts have held that the definition of “property damage” may include

coverage for loss of use of tangible property that is “not” physically injured. (See Thee Sombrero,

Inc. v. Scottsdale Ins. Co. (2018) 28 Cal.App.5th 729, 733 [“If your leased apartment was rendered

uninhabitable by some noxious stench, you would conclude that you had lost the use of tangible

property.”].) The Central District of California has held that the presence of E. Coli bacteria in water

was sufficient to cause direct physical damage to property and trigger business income coverage.

(Cooper v. Travelers Indem. Co. of Illinois (N.D. Cal. Nov. 4, 2002) No. C-01-2400-VRW, 2002

WL 32775680, at *3, aff’d. (9th Cir. 2004) 113 F.App’x 198.) Courts in other states have held that

smoke from a nearby fire and the stench of cat urine from a nearby property similarly triggered

coverage. (See, e.g., Oregon Shakespeare Festival Ass’n v. Great Am. Ins. Co. (D. Or. June 7, 2016)

No. 1:15-CV-01932-CL, 2016 WL 3267247, at *9; Mellin v. N. Sec. Ins. Co., Inc. (2015) 167 N.H.

544, 550.) In addition, a government order to suspend operations has been held to constitute a direct

physical loss sufficient to trigger coverage even where no other damage to the insured premises

resulted. (See U.S. Airways, Inc. v. Commonwealth Ins. Co. (2004) 64 VA. Cir. 408.)

39. More recently, in Friends of DeVito v. Wolf (Pa., Apr. 13, 2020) No. 68 MM 2020,

2020 WL 1847100, the Pennsylvania Supreme Court concluded that business losses caused by the

COVID-19 pandemic are indistinguishable from those caused by other natural disasters like

earthquakes, hurricanes, and fires. This is highly significant because these are all major casualty

events for which commercial property insurance is intended to provide coverage.

40. In 2005, after the SARS virus threatened to grow into a pandemic, the insurance

industry recognized that a viral pandemic could cause serious harm to persons and property and

accordingly cause a direct physical loss of use of property. This is precisely why the insurance

industry introduced in 2006 a standard exclusion for losses caused by viruses. Nevertheless, any

policy that does not have such a clear and unequivocal exclusion for viruses is, at the very least,

ambiguous and that ambiguity should give rise to coverage for losses caused by the COVID-19

pandemic. (See AIU Ins. Co. v. Superior Court (1990) 51 Cal.3d 807, 822.)

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41. In the case of In re Chinese Manufactured Drywall Products Liability Litigation (E.D.

La. 2010) 759 F.Supp.2d 822, 831–834, a federal court acknowledged that “insurance policies all

define ‘property damage’ to include loss of use of tangible property” and that:

The court is required to interpret each provision in a contract in light of the other

provisions, so that each is given the meaning suggested by the contract as a

whole. La. Civ. Code art.2050; Coleman v. School Bd. Of Richland Parish (5th Cir.

2005) 418 F.3d 511, 517. Accordingly, the Court finds that the inclusion of “loss of

use” as a type of property damage in the policies suggests that the damage caused by

the Chinese-manufactured drywall in Plaintiffs’ homes constitutes a covered physical

loss since the drywall prevents the Plaintiffs from fully using and enjoying their

homes [. . .] The Court finds, based upon the foregoing analysis, that the alleged

damages to Plaintiffs’ homes caused by Chinese drywall constitute a covered

“physical loss” for purposes of their homeowners’ policies.

(Id. at p. 832; see also Cal. Civ. Code § 1641 [“The whole of a contract is to be taken together, so as

to give effect to every part, if reasonably practicable, each clause helping to interpret the other.”]; S.

Kornreich & Sons, Inc. v. Genesis Ins. Co. (1997) 56 Cal.App.4th 407 [holding that the court must

interpret the insurance policy as whole, with each clause lending meaning to other].); Dupuy v. USAA

Cas. Ins. Co. (M.D. Louisiana, March 9, 2012) 2012 WL 832291, at p. *3.)

42. Defendants’ Policy is a tangled web of standard forms, endorsements, and special

provisions that repeatedly promise coverage with one hand and then attempt to take it away with the

other. So convoluted and, at the very least, ambiguous are the Policy’s provisions that the Policy and

Defendants’ denial letter twice cite an endorsement—Form SS 04 78—which is not even a part of

the Policy. Its provisions, in many respects, are anything but conspicuous, plain, and clear.

Inconsistencies in the language of an insurance policy create ambiguities that must be construed in

favor of providing coverage for the insured. (See AIU Ins. Co. v. Superior Court, supra, 51 Cal.3d at

p. 822; see also Bank of the West v. Superior Court (1992) 2 Cal.4th 1254, 1265 [explaining that

courts must interpret ambiguous policy provisions in accord with “the objectively reasonable

expectations of the insured.”])

43. Much of the subject Policy’s complexity can be ascribed to its reliance on a myriad

of endorsements. While endorsements in a policy control over the form policy language, those

endorsements are nevertheless required to be conspicuous, plain, and clear so as to protect the

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reasonable expectations of the insured. “Neither the prevalence of endorsements in the industry nor

our recognition that they may validly modify an insurance policy diminishes an insurer’s burden in

notifying insureds of reductions in otherwise reasonably expected coverage.” (Tomaselli v.

Transamerica Ins. Co. (1994) 25 Cal.App.4th 1269, 1281–1282.) An insurer cannot rely on esoteric

provisions to limit coverage. “If it deals with the public on a mass basis, the notice of noncoverage

of the policy, in a situation in which the public may reasonably expect coverage, must be

conspicuous, plain, and clear.” (Haynes v. Farmers Ins. Exch. (2004) 32 Cal.4th 1198, 1208, citations

omitted.)

44. Nevertheless, when each provision of the Policy is interpreted in light of its other

provisions, it becomes clear that Sentinel’s and Hartford’s interpretation of “physical loss” is

unsupported by the Policy’s language. The Policy offers no definition for “Property Damage” in its

twenty-five page “Special Property Coverage Form” (SS 00 07 07 05). Significantly, however, a

definition for “Property Damage” is found in the “Business Liability Coverage Form” (SS 00 08 04

05). This Form defines “Property Damage,” in relevant part as the: “[l]oss of use of tangible

property that is not physically injured. All such loss of use shall be deemed to occur at the time

of the ‘occurrence’ that caused it.” (Exhibit B, p. 80, emphasis added.) That same section defines

“Occurrence” as

an accident, including continuous or repeated exposure to substantially the same

general harmful conditions, which results in bodily injury or property damage

first manifested after the inception date of this policy and not first manifested

after the expiration or cancellation date of this policy.

(Exhibit B, p. 79, emphasis added.) Under these definitions, Mostre Exhibits suffered direct physical

loss or damage to its Insured Properties. This damage was in the form of loss of use resulting from

repeated and continuous community and property infection of coronavirus. The COVID-19

pandemic, the community spread of coronavirus, and its infection at the Insured Properties easily

satisfies the definition of an “occurrence,” as with any other covered “natural disaster.” (See Friends

of DeVito v. Wolf, supra, 2020 WL 1847100, at p. *12 [“[A]ny location (including [the insured’s]

business) where two or more people can congregate is within the disaster area.”], emphasis added.)

Despite the Policy’s express language and the weight of legal authority on point, however,

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Defendants persist in their unreasonable position that the COVID-19 pandemic and presence of

coronavirus is not a covered loss.

45. Moreover, Sentinel’s and Hartford’s interpretation of the operative Policy provisions

runs the risk of rendering important coverage provisions illusory, particularly as to the Policy’s

purported “Limited Virus Coverage” (Form SS 40 93 07 05). It is well-settled that a policy cannot

be interpreted in such a fashion as to render coverage illusory:

When reasonably practical, contracts are to be interpreted in a manner that makes

them reasonable and capable of being carried into effect, and that is consistent with

the parties’ intent. [citation] A provision will not be construed to nullify the very

purpose of a vendor’s endorsement, causing a forfeiture where the parties intended

coverage. [citation] An interpretation that would render the objectively

reasonable expectations of the insured for coverage under the policy

“meaningless” is an example of an illusory coverage [citation] Factors that may

be considered in determining the existence of “illusory coverage” are: (1) the

business of the insured; and (2) the procedures of the insured in carrying on its

business.

(Shade Foods, Inc. v. Innovative Products Sales & Marketing, Inc. (2000) 78 Cal.App.4th 847, 874,

emphasis added.)

46. The Limited Virus Coverage provides limited coverage for viruses. Despite this

provision, Defendants claim that the novel coronavirus’ presence and infection of physical surfaces

does not create a “direct physical loss.” However, Defendants’ interpretation renders the subject

coverage illusory because, if Defendants’ position is to be accepted, then the claimed Limited Virus

Coverage would not apply to any virus whatsoever. Such an interpretation effectively, actively and

improperly renders the “Limited Virus Coverage” terms meaningless and manifestly illusory because

it “defeats the objectively reasonable expectations of the insured.” (Shade Foods, Inc. v. Innovative

Products Sales & Marketing, Inc., supra, 78 Cal.App.4th at p. 874.) Furthermore, such an

interpretation goes against science. The deadly coronavirus in fact can remain alive and is

transmittable on surfaces and physical property for a prolonged period measured by days or even

weeks. As such, Defendants’ position that a virus is not covered under these circumstances makes

coverage under the Limited Virus Coverage illusory and constitutes bad faith.

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13 COMPLAINT

47. Further evidence of the illusory nature of Defendants’ interpretation of the Policy is

manifest in Defendants’ reference to a purported pollution exclusion that applies to “loss or damage

caused by or resulting from the discharge, dispersal, seepage, migration, release, or escape of

pollutants and contaminants” as if it somehow vitiates coverage for damage caused by the deadly

coronavirus. (Exhibit C, p. 4.) Such a position, however, is futile, and would render Limited Virus

Coverage illusory and meaningless. The California Supreme Court decided this very issue in

McKinnon v. Truck Ins. Exch. (2003) 31 Cal.4th 635. In McKinnon, the Court held that a pollution

exclusion did not apply to damage caused by a chemical pesticide that killed a person because the

disputed exclusion applied only to environmental pollutants. (See also Paternostro v. Choice Hotel

Int’l Sers. Corp. (E.D. LA 2014) 2014 WL 6460844 at *1 [holding bacteria does not qualify as a

pollutant]; Keggi v. Northbrook Prop. & Cas. Ins. Co. (Ariz. App. 2000) 13 P.2d 785, 790 [finding

pollution exclusion did not include bacteria].) Moreover, it is bad faith for the Defendants to issue a

special endorsement that covers viruses and then take the position that a virus is an excluded pollutant

under another provision of the Policy. Here, Defendants’ position, quite literally, seeks to take away

with one hand, through a patently inapplicable pollution exclusion, what it has already given with

another.

48. Additionally, the Policy claimed to provide coverage for lost income—including

income lost due to the government lock-down orders—through a civil authority coverage provision.

Specifically, the Policy provides coverage for lost income “when access to [the] ‘scheduled

premises’ is specifically prohibited by order of a civil authority.” (Exhibit B, p. 41, emphasis

added.) Here, the Government Orders prohibited access to the Insured Properties, and Plaintiff

incurred losses due to the suspension of business operations resulting from that prohibition. However,

in seeking to deny coverage, Defendants point to an “Acts or Decisions” exclusion that claims to

exclude “loss caused by or resulting from the decision of any person, group, organization, or

governmental body to cancel or otherwise prevent the usual flow of business.” (Exhibit C, p. 5.)

Defendants’ interpretation of the Policy, in reliance on this exclusion, succeeds in rendering the civil

authority coverage provision meaningless. Once again, only the illusion of coverage for business

income loss due to a government lock-down order is provided and “the insured receive[s] no benefit

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under the policy.” (Jeff Tracy, Inc. v. U.S. Specialty Ins. Co. (C.D. Cal. 2009) 636 F.Supp.2d 995,

1007, citing to Md. Cas. Co. v. Reeder (1990) 221 Cal.App.3d 961, 978.) Effectively, and predictably,

Defendants claim to cover “action of civil authority” with one hand, and take it away with the other

by operation of a provision that purports to exclude the “Acts or Decisions” of a “governmental

body.” As such, Defendants’ position reveals that any civil authority coverage was merely an illusion

because Defendants never intended to provide such coverage. Here, again, it is bad faith for the

Defendants to claim to provide coverage for loss of business income resulting from actions of civil

authority and then take the position that such actions are entirely excluded by another provision of

the Policy.

49. Based on information and belief, Defendants Sentinel and Hartford have accepted

Mostre Exhibit’s policy premiums with no intention of providing any coverage. Nevertheless, Mostre

Exhibits is entitled to its Actual Loss Sustained Business Income and Extra Expense for up to

$500,000 for each insured location for a total of at least $1 million as provided under Form SS 00 02

12 06 of the Policy and the Policy’s Property Coverage Declarations. Moreover, Mostre Exhibits is

also entitled to coverage under Form SS 04 28 09 07’s Special Property Coverage and Civil Authority

provisions for actual loss of business income. Furthermore, Mostre Exhibits is entitled to “Specified

Limit Coverage” under Form SS 40 60 10 12 of the Policy. Lastly, Mostre Exhibits is entitled to

Limited Virus Coverage of $50,000 per insured location for a total of $100,000 as provided under

Form SS 40 93 07 05 of the Policy.

50. Plaintiff Mostre Exhibits is in immediate and desperate need of these insurance funds

in order to meet its ongoing obligations and stay in business. Plaintiff Mostre Exhibits has incurred

and continues to incur damages for each additional day that funds to which it is otherwise entitled

are wrongfully withheld.

51. The virus is physically impacting public and private properties in cities around the

world, the United States, Franklin, Tennessee, and the County of San Diego. Any effort by Sentinel

and Hartford to deny the reality that the virus causes physical loss and damage is clear and convincing

evidence of a false and fraudulent misrepresentation by Sentinel. These misrepresentations could

endanger policyholders and the public.

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52. In addition, on April, 14, 2020, California Insurance Commissioner, Ricardo Lara,

issued a notice to all admitted and non-admitted insurance companies requiring “all agents, brokers,

insurance companies, and other licensees accept, forward, acknowledge, and fairly investigate all

business interruption insurance claims submitted by businesses” as a result of the COVID-19

pandemic. The commissioner also notified recipients of their legal obligations under the California

Fair Claims Settlement Practices Regulations and their duty to comply with their “contractual,

statutory, regulatory, and other legal obligations.” This notice merely restates existing law that was

in force at the time that Plaintiff’s claim was denied. On information and belief, Defendants received

this notice. A copy of that notice is attached hereto and incorporated herein by reference as Exhibit

D.

53. Defendants Sentinel and Hartford did not observe the existing laws and regulations

cited in the notice. Instead, Defendants reflexively denied Plaintiff’s claim without performing a

proper investigation, or at least without giving equal consideration to the interests of the insured.

Moreover, the “direct physical loss” requirement—referenced in the denial letter as the basis for the

denial—is included in virtually all standard commercial property policies. If the “direct physical

loss” requirement alone were a sufficient basis to deny a coronavirus based claim for business income

loss, the California Insurance Commissioner would not have had cause to issue the April 14, 2020

notice.

54. As a result of the pandemic, physical damage at the Insured Properties, and the

subsequent response of state and local authorities, Plaintiff has incurred, and continues to incur, a

substantial loss of business income and additional expenses covered under the Policy. A declaratory

judgment finding the existence of coverage under the policy for lost business income incurred as a

result of the COVID-19 pandemic at the Insured Properties and the civil response thereto will prevent

Plaintiff from being left without vital coverage that Plaintiff had acquired to ensure the survival of

its business.

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FIRST CAUSE OF ACTION

BREACH OF CONTRACT

(By Plaintiff Against Sentinel Insurance Company, Limited and The Hartford

Financial Services Group, Inc. )

55. Plaintiff realleges and incorporates by reference each and every allegation set forth

herein above in paragraphs 1 through 54, inclusive.

56. Plaintiff has performed each and every act and thing required of it to be performed in

accordance with the terms and conditions of the Policy, not otherwise waived or excused.

57. Defendants Sentinel and Hartford have refused to comply with their obligations under

the Policy, including, but not limited to, the following:

a. Defendants Sentinel and Hartford have unreasonably failed and refused, and continue

to fail and refuse, to pay benefits owed to the Plaintiff under the Policy as described by the operative

provisions enumerated in Paragraphs 14 through 21 including benefits for lost business income.

b. Defendants Sentinel and Hartford have failed to conduct a complete, full and fair

investigation of Plaintiff’s claim that is required by law and the California Insurance Commission.

c. Plaintiff is informed and believes and thereon alleges that Sentinel and Hartford have

failed to adopt and implement reasonable standards for the complete investigation and processing of

claims arising under insurance policies.

58. As a direct and proximate result of Sentinel’s and Hartford’s breaches of the Policy,

Plaintiff has sustained damages, including but not limited to, monies owed under the policy for

property damage, resulting losses, and loss of use of the business premises. The precise amount of

these damages is not presently ascertainable but will be proven at the time of trial.

59. Based on information and belief, Defendants Sentinel and Hartford have accepted the

premiums with no intention of providing any coverage under its Policy provisions.

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SECOND CAUSE OF ACTION

TORTIOUS BREACH OF IMPLIED COVENANT OF GOOD FAITH AND FAIR

DEALING





61. The Policy contains an implied covenant by Sentinel and Hartford that they will act

in good faith and deal fairly with Plaintiff and that they would do nothing to interfere with the rights

of their insured to receive the benefits of the Policy.

62. Sentinel’s and Hartford’s conduct in failing and refusing to conduct a complete,

thorough, and fair investigation was unreasonable and constitutes bad faith.

63. Sentinel’s and Hartford’s conduct in wrongfully denying Plaintiff’s claim based on

an alleged lack of physical damage—in spite of being presented with evidence that physical damage

occurred due to the viral pandemic—was unreasonable and constitutes bad faith.

64. Sentinel’s and Hartford’s conduct in refusing to pay for resulting loss which is insured

is unreasonable and constitutes bad faith.

65. Sentinel’s and Hartford’s bad faith conduct as alleged above injured and impaired

Plaintiff’s rights implied by law in the Policy to enjoy the fruits and benefits of the Policy which

would accrue by the proper performance of Sentinel’s and Hartford’s obligations under the policy.

66. As a direct and proximate result of Sentinel’s and Hartford’s breaches of the implied

covenant of good faith and fair dealing, Plaintiff has sustained damage, including but not limited to,

monies owed under the Policy for Property Damage, resulting losses, loss of use of the business

premises, as well as pain and suffering, mental anguish, and emotional distress. The precise amount

of these damages is not presently ascertainable but will be proven at the time of trial.

67. As a further direct and proximate result of Sentinel’s and Hartford’s breaches,

Plaintiff has incurred attorney’s fees as additional damages, the precise amount of which are

unascertainable at this time.

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68. Plaintiff is informed and believes that all of the wrongful acts alleged herein were

authorized and/or ratified by officers, directors, or other managerial agents of Defendants Sentinel

and Hartford.

69. Plaintiff is informed and believes and thereon alleges that Hartford and Sentinel

willfully engaged in the conduct alleged with malice, fraud, and oppression without excuse or

justification and with the specific intent to injure Plaintiff and they are therefore entitled to an award

of punitive damages against Defendant in an amount to be proven at the time of trial. Defendants’

despicable conduct includes, but is not limited to, denying Plaintiff’s claim with little or no

investigation and in the face of overwhelming evidence supporting the validity of Plaintiff’s claim.

THIRD CAUSE OF ACTION

DECLARATORY RELIEF



70. Plaintiffs reallege and incorporate by reference each and every allegation set forth


71. Under Code of Civil Procedure section 1060 et seq., the Court may declare rights,

status, and other legal relations whether or not further relief is or could be claimed.

72. An actual controversy has arisen between Plaintiff Mostre Exhibits and Defendants

Sentinel and Hartford as to the rights, duties, responsibilities, and obligations of the parties in that

Plaintiff contends and, on information and belief, Defendants Sentinel and Hartford dispute and deny

that: (1) the coronavirus constitutes and cause a covered loss to the Insured Properties; (2) the

Government Orders prohibit access to Plaintiff’s Insured Properties; (3) the Government Orders

trigger coverage because the Policy does not include an exclusion for losses caused by a viral

pandemic; (4) the Policy provides coverage to Plaintiff for any current and future civil authority

closures of businesses in San Diego County, California and Franklin, Tennessee due to physical loss

or damage from the coronavirus under the Civil Authority coverage provision; and (5) the Policy

provides business income coverage in the event that the coronavirus has caused a loss or damage at

the Insured Properties or immediate area of the Insured Properties. Resolution of the duties,

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responsibilities, and obligations of the parties is necessary as no adequate remedy at law exists and a

declaration of the Court is needed to resolve the dispute and controversy.

73. Plaintiff seeks a Declaratory Judgment to determine whether the Government Orders

caused a covered loss under the Policy.

74. Plaintiff further seeks a Declaratory Judgment to affirm that the Government Orders

trigger coverage because the Policy does not include an exclusion for a viral pandemic.

75. Plaintiff further seeks a Declaratory Judgment to affirm that the policy provides

coverage to Plaintiff for any current and future civil authority closures in San Diego County,

California or Franklin, Tennessee and that the Policy provides business income coverage to the extent

that coronavirus has caused a loss or damage at the Insured Properties.

FOURTH CAUSE OF ACTION

PROFESSIONAL NEGLIGENCE

(By Plaintiff Against All Defendants)



77. In the event that that the Court finds that there is not at least $1,000,000 of total

business income coverage for twelve (12) months for both of the insured locations, Plaintiff asserts

this cause of action for Professional Negligence against Defendant IOA Insurance Services Inc.

Under the law governing an insurer’s liability for its appointed agents, Defendants Sentinel and

Hartford are vicariously liable for any damages established under Plaintiff’s claim for Professional

Negligence against Defendant IOA Insurance Services Inc.

78. As enumerated in Paragraph 8 IOA Insurance Services held itself out as an expert in

the procurement of business income insurance. Plaintiff relied on IOA Insurance Services professed

expertise in obtaining a Policy with Defendants Sentinel and Hartford.

79. IOA Insurance Services owed Plaintiff a duty of reasonable care to procure the

insurance requested by Plaintiff.

80. In or around June 2019, IOA Insurance Services recommended that Plaintiff obtain a

consolidated policy that provided the same, cumulative level of coverage as that it had obtained under

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a separate policy for each of Plaintiff’s business locations, including coverage for loss of business

income.

81. IOA Insurance Services knew or should have known that Plaintiffs would need at least

$500,000 of loss of business income coverage for each business location, for a total of at least

$1,000,000 of coverage under the Policy. Plaintiffs relied on IOA Insurance Services to obtain such

coverage.

82. In or about June, 2019, IOA Insurance Services informed Plaintiff that it had obtained

a consolidated Policy for Plaintiff through Defendants Sentinel and Hartford with an initial effective

date of June 25, 2019, for a policy period of one year.

83. IOA Insurance Services knew or should have known that Plaintiff’s Policy did not

include coverage of $500,000 of business income coverage for each business location, for a total of

$1,000,0000 of coverage under the policy. IOA Insurance Services failed to inform Plaintiff that the

Policy was limited to $500,000.

84. In addition, IOA Insurance Services knew or should have known that Sentinel

Insurance Company’s Deluxe Hartford Policy offered full coverage for damage caused by viruses.

IOA Insurance Services failed to inform Plaintiff of the availability of such additional coverage.

85. IOA Insurance Services breached its duty of care to Plaintiff by negligently failing to

obtain for Plaintiff sufficient loss of business income insurance coverage.

86. On information and belief, Defendant IOA Insurance Services is an appointed agent

of Co-Defendants Sentinel and Hartford and is thus subject to Insurance Code section 1731. (See

Exhibit D.) As such, Defendants Sentinel and Hartford are vicariously liable for the professional

negligence of their appointed agent, Defendant IOA Insurance Services.

87. Under Insurance Code section 1731, “[a] person licensed as a broker-agent shall be

deemed to be acting as an insurance agent in the transaction of insurance placed with those insurers

for whom a notice of appointment has been filed with the Insurance Commissioner.” Moreover, “[i]n

addition to possessing a license, an insurance agent must be authorized by an insurance carrier to

transact insurance business on the carrier’s behalf. This authorization must be evidenced by a notice

of agency appointment on file with the Department of Insurance.” (Chicago Title Ins. Co. v. AMZ

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Ins. Services, Inc. 188 (2010) Cal.App.4th 401, 425.)

88. An insurance agent’s negligence in failing to procure the type of insurance sought by

the insured may be attributed to the insurer under theories of ratification and ostensible authority.

(See R&B Auto Ctr., Inc. v. Farmers Group, Inc. (2006) 140 Cal.App.4th 327, 337.) An insurer may

also be vicariously liable for its agent’s negligent misrepresentations as to the existence or scope of

coverage. (See Paper Savers, Inc. v. Nacka (1996) 51 Cal.App.4th 1090, 1099.) Consequently, an

agent’s representations regarding coverage in selling a policy may have the effect of expanding the

coverage beyond that actually provided by the policy even when there is no ambiguity. (See Hartford

Fire Ins. Co. v. Spartan Realty Int’l, Inc. (1987) 196 Cal.App.3d 1320, 1325 [“[F]raud or

misrepresentation as to coverage under a policy or issuance of a policy different from that represented

to the insured estops the insurer from reliance on the coverage as stated in the issued policy.”]; R&B

Auto Ctr., Inc. v. Farmers Group, Inc. (2006) 140 Cal.App.4th 376, 339, fn. 11 [finding that the

agent’s misrepresentation may be ground for reformation of the policy to provide the coverage

promised].)

89. Moreover, under California law, “it is a well-established principle that attorney fees

incurred through instituting . . . an action as a direct result of the tort of another are recoverable

damages.” (Third Eye Blind, Inc. v. Near North Entertainment Ins. Services, LLC (2005) 127

Cal.App.4th 1311, 1324.)

90. As a proximate result of Defendant IOA Insurance Service’s negligent failure to

obtain loss of business income coverage and Defendants Sentinel and Hartford’s ratification and/or

grant of authority to IOA Insurance Services, Plaintiff has sustained, and continues to sustain,

damages for loss of insurance benefits for the loss of business income claim that it would have

received had IOA Insurance Service procured adequate loss of business income coverage from

Sentinel and Hartford.

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P R A Y E R

WHEREFORE, Plaintiff MOSTRE EXHIBITS, LLC, prays as follows:

As to the First Cause of Action:

1. For contractual benefits under the Policy;

2. For general, special, and consequential damages according to proof at the time of trial;

As to the Second Cause of Action:

3. For contractual benefits under the Policy;

4. For general, special, and consequential damages according to proof at the time of trial;

5. For reasonable attorney’s fees pursuant to law incurred to obtain the Policy benefits;

6. For punitive damages according to proof;

As to the Third Cause of Action:

7. For a declaration that the COVID-19 pandemic and the infection of coronavirus

constitutes “physical loss” under the Policy;

8. For a declaration that the coronavirus caused a covered loss under the Policy;

9. For a declaration that the Government Orders “prohibited access” to Plaintiff’s

Insured Properties, as defined in the Policy;

10. For a declaration that the Government Orders trigger coverage because the Policy

does not include an exclusion for losses caused by a pandemic and actually extends coverage for loss

or damage due to virus;

11. For a declaration that the Policy provides: (1) Actual Loss Sustained Business Income

and Extra Expense for at least $500,000 for each insured location for a total of at least $1 million;

(2) coverage to Plaintiff for any current and future civil authority closures in San Diego County and

Franklin, Tennessee due to physical loss or damage from the coronavirus pandemic under the

Policy’s Civil Authority coverage provision; and (3) Limited Virus Coverage of $50,000 due to the

business income impact and community infection arising from the COVID-19 pandemic.

As to the Fourth Cause of Action:

12. For compensatory damages, in an amount to be proved at trial;

13. For interest at the legal rate;

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14. For reasonable attorney’s fees pursuant to law incurred to obtain the Policy benefits.

As to All Causes of Action:

15. For costs of suit incurred therein;

16. For such other and further relief as the Court may deem just and proper.

Respectfully submitted,

LiMANDRI & JONNA LLP

Dated: April 27, 2020 By: ______________________________

Charles S. LiMandri

Paul M. Jonna

Jeffrey M. Trissell

Milan L. Brandon

Attorneys for Plaintiff

MOSTRE EXHIBITS, LLC

Exhibit A

Ag:encie: Find a Broker c.r .. r:o Location: BloCI Contact u=

I 0 P~ Business Insurance Personal Insurance Employee Benefits Risk Management Industries Q INSURANCE OFFICE OF AMERICA

Our Mission

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IOA Business Insurance Personal Insurance Employee Benefits Risk Management Industries

INSURANCE OFFICE OF AMERICA

Business Interruption Get the coverage you need to keep operations and mcornes flowang.

Overview When you have an operation that is spread across the country or is very large in size, you need a

busaness interruption policy. Chances are you have critical operations in different regions, and when

catastrophes or other events occur that hinder or stop smooth operations, they affect your entire

busaness process. Small businesses also may find this type of coverage valuable.

Business insurance is one way to protect your revenue. Examine your unique risks with an lOA

advisor to determine your coverage needs.

Contact />.. Broke~:

TO DETERMINE IF BUSINESS INTERRUPTION COVERAGE IS RIGHT FOR YOUR NEEDS:

Examine your risk culture

Review your strengths and

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EXHIBIT B

Form G-4159-0 © 2019, The Hartford Page 1 of 1

THANK YOU FOR RENEWING YOUR POLICY WITH US

If you're receiving this renewal through the mail directly from The Hartford, please note that we've only attachednew, changed or updated documents. These include your new declarations page, which outlines your coverage,as well as any notices and brochures with updated information. We leave out unchanged documents to help cutdown on paperwork and mailing costs. You can keep the attached documents filed alongside those from yourprevious policy if you wish.

If you're receiving this renewal electronically, or it's been mailed by your agent, it may include all of yourdocuments - even ones that haven't changed.

In either case, keep in mind that you can view, download or print any of these documents online. Just register orlog into your account https://business.thehartford.com and click on "Documents". For added convenience, you canalso pay your bill, request a Certificate of Insurance, check claims status, update preferences and more.

Form 100722 11th Rev. Printed in U.S.A.

Insurance Policy Billing Information

Thank you for selecting The Hartford for your business insurance needs.

Shortly, you will receive your first bill from us. You are receiving this Notice so you knowwhat to expect as a valued customer of The Hartford. Should you have any questions afterreviewing this information, please contact us at 866-467-8730, and we will be happy toassist you.

o Your total policy premium will appear on your policy’s Declarations Page. You will be billed based on the paymentplan you selected.

o You may pay the "minimum due" as it appears on your insurance bill or pay the policy balance in full.

o An installment service fee is added to each installment. A late fee will also be applied if the "minimum due" is notreceived by the due date shown on your bill. Service and late payment fees do not apply in all states.

o If you selected installment billing, any credit or additional premium due as the result of a change made to yourpolicy, will be spread over the remaining billing installments. Additional premium due as a result of an audit will bebilled in full on your next bill date following the completion of the audit.

o If you elected Electronic Funds Transfer (EFT), policy changes may result in changes to the amount automaticallywithdrawn from your bank account. The invoice you receive following a policy change will include future withdrawalamounts. If you need to adjust or stop your next scheduled EFT withdrawal, please contact us at least 3 daysprior to the scheduled withdrawal date at the telephone number shown below.

o If you selected installment billing and pay the premiums for your first policy term on time, at renewal, your accountmay qualify for our "Equal Installment" feature. This means that the percentage due for each installment, includingthe initial renewal installment, will be the same throughout the policy term – helping you better manage cash flow.Equal installments will continue as long as you pay your premiums on time and no cancellation notices are issuedfor any policy on your account. If you no longer qualify for Equal Installments, future renewals will be billed basedon the payment plan you selected, which includes a higher initial installment amount.

o If your policy is eligible for renewal, your bill for the upcoming policy term will be sent to you approximately 30 daysprior to your policy’s renewal date. If your insurance needs change, please contact us at least 60 days prior to yourrenewal date so we can properly address any adjustments needed.

o One bill convenience -- you have the option of combining all eligible Hartford policies on one single bill allowingyou to make one payment for all policies on your account as payments are due.

You’re In Control

In addition to selecting a bill plan option that best meets your budget, you have the flexibility to decide how yourpayments are made …

o Repetitive EFT: Sign up for Repetitive EFT payments and have payments automatically withdrawn from your bankaccount. This option saves you money by reducing the amount of the installment service fee.

o Pay Online: Register at www.thehartford.com/servicecenter. Online Bill Pay is Quick, Easy and Secure!

o Pay by Check: Send a check with your remittance stub in the envelope provided with your bill.

o Pay by Phone: Call toll-free 1-866-467-8730.

Should you have any questions about your bill, please call Customer Service toll-free number:1-866-467-8730 - 7AM – 7PM CST. We look forward to being of service to you.

Form SS 89 93 07 16 Page 1 of 1© 2016, The Hartford

IMPORTANT NOTICE TO POLICYHOLDERS

THE HARTFORD CYBER CENTER WEBSITE ACCESS

Thank you for choosing The Hartford for your business insurance needs.

You are receiving this Notice because you purchased a business owner's policy from The Hartford, (your Policywas issued by The Hartford writing company identified on your policy Declarations page) which includes access toThe Hartford Cyber Center. This portal was created because we recognize that businesses face a variety ofcyber-related exposures and need help managing the related risks. These exposures include data breaches,computer virus attacks and cyber extortion threats.

Through The Hartford Cyber Center, you have access to:

o A panel of third party incident response service providers

o Third party cybersecurity pre-incident service providers and a list of approved services to help protectyour business before a cyber-threat occurs

o Risk management tools, including self-assessments, best practice guides, templates, sample incidentresponse plans, and data breach cost calculators

o White papers, blogs and webinars from leading privacy and security practitioners

o Up-to-date cyber-related news and events, including examples of privacy and security related events

Accessing The Hartford Cyber Center is easy

1. Visit www.thehartford.com/cybercenter

2. Enter policyholder information

3. Access code: 952689

4. Login to The Hartford Cyber Center

This Notice does not amend or otherwise affect the provisions of your business owner's policy.

Coverage Options:

The Hartford offers a variety of endorsements to your business owner's policy that can help protect your businessfrom a broad range of cyber-related threats. Please review your coverage with your insurance agent or broker todetermine the most appropriate cyber coverages and limits for your business.

Claims Reporting:

If you have a claim, you can report it by calling The Hartford's toll-free claims line at 1-800-327-3636.

Should you have any questions, please contact your insurance agent, broker or you may contact us directly.

We appreciate your business and look forward to being of continued service to you.

Please be aware that:

o The Hartford Cyber Center is a proprietary web portal exclusively provided to customers of The Hartford.Please do not share the access code with anyone outside your organization.

o Registration is required to access the Cyber Center. You may register as many users as necessary.

o Contacting a service provider about any issue does not constitute providing The Hartford notice of a claimas required under your insurance policy. Read your insurance policy and discuss any questions with youragent or broker.

The Hartford Cyber Center provides third party service provider references and materials for educationalpurposes only. The Hartford does not specifically endorse any such service provider within The Hartford CyberCenter and hereby disclaims all liability with respect to use of or reliance on such service providers. All serviceproviders are independent contractors and not agents of The Hartford. The Hartford does not warrant theperformance of the service providers, even if such services are covered under your Business Owners Policy. Westrongly encourage you to conduct your own assessments of the service providers' services and the fitness oradequacy of such services for your particular needs.

Form SS 00 01 03 14 Page 1 of 1

®

Business Owner’s Policy

Form G-3418-0

PRODUCER COMPENSATION NOTICE

You can review and obtain information on The Hartford’s producer compensation practices atwww.TheHartford.com or at 1-800-592-5717.

72 SBA AP9428

$93.00

POLICY NUMBER:

THIS ENDORSEMENT IS ATTACHED TO AND MADE PART OF YOUR POLICY INRESPONSE TO THE DISCLOSURE REQUIREMENTS OF THE TERRORISM RISK

INSURANCE ACT.

Form SS 83 76 01 15 Page 1 of 2© 2015 , The Hartford

(Includes copyrighted material of the Insurance Services Office, Inc., with its permission.)

DISCLOSURE PURSUANT TO TERRORISM RISKINSURANCE ACT

SCHEDULE

Terrorism Premium:

$

A. Disclosure Of PremiumIn accordance with the federal Terrorism RiskInsurance Act, as amended (TRIA), we are requiredto provide you with a notice disclosing the portion ofyour premium, if any, attributable to coverage for"certified acts of terrorism" under TRIA. The portionof your premium attributable to such coverage isshown in the Schedule of this endorsement.

B. The following definition is added with respect to theprovisions of this endorsement:1. A "certified act of terrorism" means an act that is

certified by the Secretary of the Treasury, inaccordance with the provisions of TRIA, to bean act of terrorism under TRIA. The criteriacontained in TRIA for a "certified act ofterrorism" include the following:a. The act results in insured losses in excess

of $5 million in the aggregate, attributable toall types of insurance subject to TRIA; and

b. The act results in damage within the UnitedStates, or outside the United States in thecase of certain air carriers or vessels or thepremises of an United States mission; and

c. The act is a violent act or an act that isdangerous to human life, property orinfrastructure and is committed by anindividual or individuals as part of an effortto coerce the civilian population of the

United States or to influence the policy oraffect the conduct of the United StatesGovernment by coercion

C. Disclosure Of Federal Share Of TerrorismLosses

The United States Department of the Treasury willreimburse insurers for a portion of insured losses,as indicated in the table below, attributable to"certified acts of terrorism" under TRIA that exceedsthe applicable insurer deductible:

Calendar Year Federal Share ofTerrorism Losses

2015 85%

2016 84%

2017 83%

2018 82%

2019 81%

2020 or later 80%

However, if aggregate industry insured losses underTRIA exceed $100 billion in a calendar year, theTreasury shall not make any payment for anyportion of the amount of such losses that exceeds$100 billion. The United States government has notcharged any premium for their participation incovering terrorism losses.

Form SS 83 76 01 15 Page 2 of 2

D. Cap On Insurer Liability for Terrorism Losses

If aggregate industry insured losses attributable to"certified acts of terrorism" under TRIA exceed $100billion in a calendar year and we have met, or willmeet, our insurer deductible under TRIA, we shallnot be liable for the payment of any portion of theamount of such losses that exceed $100 billion. Insuch case, your coverage for terrorism losses maybe reduced on a pro-rata basis in accordance withprocedures established by the Treasury, based onits estimates of aggregate industry losses and ourestimate that we will exceed our insurer deductible.In accordance with the Treasury's procedures,amounts paid for losses may be subject to furtheradjustments based on differences between actuallosses and estimates.

E. Application of Other Exclusions

The terms and limitations of any terrorism exclusion,the inapplicability or omission of a terrorismexclusion, or the inclusion of terrorism coverage, donot serve to create coverage for any loss whichwould otherwise be excluded under this CoverageForm, Coverage Part or Policy.

F. All other terms and conditions remain the same.



ERISA - EMPLOYEE DISHONESTY

You are receiving this notice because your renewal policy contains ERISA-EMPLOYEE DISHONESTY.

The Employee Retirement Income Security Act of 1974 (ERISA) is a federal law that sets rules and standards ofconduct for private sector employee benefit plans and those that invest and manage their assets. One of ERISA'srequirements is that people who handle plan funds and other property must be covered by a fidelity bond to protectthe plan from losses due to fraud or dishonesty.

Please be advised that on or before the beginning of each plan year, the plan administrator or other plan fiduciarymust ensure that the plan has the legally required bonding amount for the individuals who will handle the plan'sfunds and other property. If necessary, the plan administrator or other plan fiduciary may need to obtainappropriate adjustments or additional protection to ensure that the coverage will be in compliance for the new planyear.

If you wish to adjust the amount of your ERISA fidelity bond, please reach out to your agent or Hartfordrepresentative.

Form PC-374-0 Printed in U.S.A.


To help your insurance keep pace with increasing costs, we have increased your amount of insurance . . . giving youbetter protection in case of either a partial, or total loss to your property.

If you feel the new amount is not the proper one, please contact your agent or broker.

001 (CONTINUED ON NEXT PAGE)04/10/19 06/25/20

2894AP

SBA

SENTINEL INSURANCE COMPANY, LIMITED

ONE HARTFORD PLAZA, HARTFORD, CT 06155A

72 SBA AP9428 SC

MOSTRE EXHIBITS LLC

965 PARK CENTER DRVISTA CA 92081

06/25/19 06/25/20 1 YEAR

IOA INSURANCE SERVICES165750

72 SBA AP9428

LIMITED LIAB CORP

ANNUAL

SPECIAL

$4,738IN RECOGNITION OF THE MULTIPLE COVERAGES INSURED WITH THE HARTFORD, YOURPOLICY PREMIUM INCLUDES AN ACCOUNT CREDIT.

04/10/19

Form SS 00 02 12 06 PageProcess Date: Policy Expiration Date:

This Spectrum Policy consists of the Declarations, Coverage Forms, Common Policy Conditions and anyother Forms and Endorsements issued to be a part of the Policy. This insurance is provided by the stockinsurance company of The Hartford Insurance Group shown below.

INSURER:

COMPANY CODE:

Policy Number:

SPECTRUM POLICY DECLARATIONS

Named Insured and Mailing Address:(No., Street, Town, State, Zip Code)

Policy Period: From To12:01 a.m., Standard time at your mailing address shown above. Exception: 12 noon in New Hampshire.

Name of Agent/Broker:Code:

Previous Policy Number:

Named Insured is:

Audit Period:

Type of Property Coverage:

Insurance Provided: In return for the payment of the premium and subject to all of the terms of this policy, weagree with you to provide insurance as stated in this policy.____________________________________________________________________________________________________________________

TOTAL ANNUAL PREMIUM IS:

______________________________________________________________________________________________

Countersigned byAuthorized Representative Date

002 (CONTINUED ON NEXT PAGE)

04/10/19 06/25/20

72 SBA AP9428

001 001

416 MARY LINDSAY POLK DR,STE 508FRANKLIN TN 37067

Office & Store Fixtures, Partitions & Shelves Manufacturing

$ 500 PER OCCURRENCE

NO COVERAGE

$ 31,100

NO COVERAGE

MONEY AND SECURITIES

INSIDE THE PREMISESOUTSIDE THE PREMISES

$ 10,000$ 5,000

LOSS PAYEE: APPLIESLENDER'S LOSS PAYABLE: APPLIES


SPECTRUM POLICY DECLARATIONS (Continued)POLICY NUMBER:

Location(s), Building(s), Business of Named Insured and Schedule of Coverages for Premises as designated byNumber below.

Location: Building:

Description of Business:

Deductible:

BUILDING AND BUSINESS PERSONAL PROPERTY LIMITS OF INSURANCE

BUILDING

BUSINESS PERSONAL PROPERTY

REPLACEMENT COST

PERSONAL PROPERTY OF OTHERS

REPLACEMENT COST


72 SBA AP9428

001 001

MANUFACTURERS STRETCHFORM: SS 04 28THIS FORM INCLUDES MANY ADDITIONALCOVERAGES AND EXTENSIONS OFCOVERAGES. A SUMMARY OF THECOVERAGE LIMITS IS ATTACHED.

LIMITED FUNGI, BACTERIA OR VIRUSCOVERAGE:FORM SS 40 93THIS IS THE MAXIMUM AMOUNT OFINSURANCE FOR THIS COVERAGE,SUBJECT TO ALL PROPERTY LIMITSFOUND ELSEWHERE ON THISDECLARATION.INCLUDING BUSINESS INCOME AND EXTRAEXPENSE COVERAGE FOR:

$ 50,000

30 DAYS




Location: Building:

PROPERTY OPTIONAL COVERAGES APPLICABLE LIMITS OF INSURANCETO THIS LOCATION

004 (CONTINUED ON NEXT PAGE)

04/10/19 06/25/20

72 SBA AP9428

002 001

965 PARK CENTER DR.VISTA CA 92081


$ 500 PER OCCURRENCE

NO COVERAGE

$ 292,300

NO COVERAGE

MONEY AND SECURITIES

INSIDE THE PREMISESOUTSIDE THE PREMISES

$ 10,000$ 5,000




Location: Building:

Description of Business:

Deductible:

BUILDING AND BUSINESS PERSONAL PROPERTY LIMITS OF INSURANCE

BUILDING

BUSINESS PERSONAL PROPERTY

REPLACEMENT COST


REPLACEMENT COST


72 SBA AP9428

002 001

MANUFACTURERS STRETCHFORM: SS 04 28THIS FORM INCLUDES MANY ADDITIONALCOVERAGES AND EXTENSIONS OFCOVERAGES. A SUMMARY OF THECOVERAGE LIMITS IS ATTACHED.

LIMITED FUNGI, BACTERIA OR VIRUSCOVERAGE:FORM SS 40 93THIS IS THE MAXIMUM AMOUNT OFINSURANCE FOR THIS COVERAGE,SUBJECT TO ALL PROPERTY LIMITSFOUND ELSEWHERE ON THISDECLARATION.INCLUDING BUSINESS INCOME AND EXTRAEXPENSE COVERAGE FOR:

$ 50,000

30 DAYS




Location: Building:

PROPERTY OPTIONAL COVERAGES APPLICABLE LIMITS OF INSURANCETO THIS LOCATION


72 SBA AP9428

ACTUAL LOSS SUSTAINED BUSINESSINCOME & EXTRA EXPENSE - SPECIFIEDLIMIT COVERAGE: FORM SS 40 60

CONTRACTORS EQUIPMENT:FORM SS 04 24

MAXIMUM LIMIT OF INSURANCE:SEE ATTACHED SCHEDULE OF VALUES:FORM IH 12 00DEDUCTIBLE: $ 250

EQUIPMENT BREAKDOWN COVERAGECOVERAGE FOR DIRECT PHYSICAL LOSSDUE TO:MECHANICAL BREAKDOWN,ARTIFICIALLY GENERATED CURRENTAND STEAM EXPLOSION

THIS ADDITIONAL COVERAGE INCLUDESTHE FOLLOWING EXTENSIONS

HAZARDOUS SUBSTANCESEXPEDITING EXPENSES

MECHANICAL BREAKDOWN COVERAGE ONLYAPPLIES WHEN BUILDING OR BUSINESSPERSONAL PROPERTY IS SELECTED ONTHE POLICY

IDENTITY RECOVERY COVERAGEFORM SS 41 12

$ 500,000

$ 7,578

$ 50,000$ 50,000

$ 15,000



PROPERTY OPTIONAL COVERAGES APPLICABLE LIMITS OF INSURANCETO ALL LOCATIONS


72 SBA AP9428

$1,000,000

$ 10,000

$1,000,000

$1,000,000

$2,000,000

$2,000,000

FORM SS 09 01

$ 10,000

NOT APPLICABLE

$ 10,000

06252014

BUSINESS LIABILITY OPTIONALCOVERAGES

HIRED/NON-OWNED AUTO LIABILITY

CYBERFLEX COVERAGEFORM SS 40 26

$1,000,000



BUSINESS LIABILITY LIMITS OF INSURANCE

LIABILITY AND MEDICAL EXPENSES

MEDICAL EXPENSES - ANY ONE PERSON

PERSONAL AND ADVERTISING INJURY

DAMAGES TO PREMISES RENTED TO YOUANY ONE PREMISES

AGGREGATE LIMITSPRODUCTS-COMPLETED OPERATIONS

GENERAL AGGREGATE

EMPLOYMENT PRACTICES LIABILITYCOVERAGE:

EACH CLAIM LIMIT

DEDUCTIBLE - EACH CLAIM LIMIT

AGGREGATE LIMIT

RETROACTIVE DATE:

This Employment Practices Liability Coverage contains claims made coverage. Except as may be otherwiseprovided herein, specified coverages of this insurance are limited generally to liability for injuries for which claims arefirst made against the insured while the insurance is in force. Please read and review the insurance carefully anddiscuss the coverage with your Hartford Agent or Broker.

The Limits of Insurance stated in this Declarations will be reduced, and may be completely exhausted, by the paymentof "defense expense" and, in such event, The Company will not be obligated to pay any further "defense expense" orsums which the insured is or may become legally obligated to pay as "damages".


72 SBA AP9428

UNMANNED AIRCRAFT LIABILITYFORM: SS 42 06



BUSINESS LIABILITY OPTIONAL COVERAGES LIMITS OF INSURANCE(Continued)


72 SBA AP9428

LOCATION 001 BUILDING 001

TYPE MANAGER LESSOR

NAME SEE FORM IH 12 00



ADDITIONAL INSUREDS: THE FOLLOWING ARE ADDITIONAL INSUREDS FOR BUSINESSLIABILITY COVERAGE IN THIS POLICY.

01004/10/19 06/25/20

72 SBA AP9428

LOSS PAYEE :FORM SS 12 12

LOAN NUMBER:PROPERTY:

LENDER'S LOSS PAYABLE :FORM SS 12 12

LOAN NUMBER:PROPERTY:

MARLIN BUSINESS BANKINSURANCE SERVICE CENTERP.O. BOX 36MARLTON, NJ. 08053CNTRT#40-1615222-0012008 YALE FORKLIFTMDL:GLC050VXNVSE083 SL#:A910V02530C

PACIFIC PREMIER BANKITS SUCCESSORS AND OR ASSIGNSPO BOX 358EVERETT, WA. 982066270025012BUSINESS PERSONAL PROPERTY

SS 00 01 03 14 SS 00 05 10 08 SS 00 07 07 05 SS 00 08 04 05SS 00 38 04 04 SS 00 60 09 15 SS 00 61 09 15 SS 00 64 09 16SS 84 08 09 07 SS 01 21 03 17 SS 01 45 03 97 SS 42 06 03 17SS 04 19 04 09 SS 04 22 07 05 SS 04 24 10 09 SS 04 28 09 07SS 04 30 07 05 SS 04 38 09 09 SS 04 39 07 05 SS 04 41 03 18SS 04 42 03 17 SS 04 44 07 05 SS 04 45 07 05 SS 04 46 09 14SS 04 47 04 09 SS 04 80 03 00 SS 04 86 03 00 SS 40 18 07 05SS 40 26 03 17 SS 40 60 10 12 SS 40 93 07 05 SS 41 12 12 17SS 41 51 10 09 SS 41 63 06 11 IH 10 01 09 86 SS 05 18 07 92SS 05 47 09 15 SS 51 11 03 17 SS 09 01 12 14 SS 09 67 09 14SS 09 70 12 14 SS 09 71 12 14 SS 12 12 03 92 SS 50 19 01 15IH 99 40 04 09 IH 99 41 04 09 SS 83 76 01 15 SS 89 93 07 16

IH 12 00 11 85 ADDITIONAL INSURED - MANAGER/LESSORIH 12 00 11 85 ADDITIONAL INSURED - PERSON-ORGANIZATIONIH 12 00 11 85 CONTRACTORS EQUIPMENT SCHEDULE



Form Numbers of Forms and Endorsements that apply:


72 SBA AP9428

LOC/BLDG NO: 001/001 TERR: 001LOCATION: 416 MARY LINDSAY POLK DR,STE 508

FRANKLIN TN 37067

CLASSIFICATION CODE NUMBER 25421DESCRIPTION:


COVERAGE DESCRIPTION: PREMISES/OPERATIONS COVERAGE

REFER TO: BUSINESS LIABILITY COVERAGE PART FORM SS 00 08

RATING BASIS: SALES PER 1000

EXPOSURE: 964,102

FINAL RATE: 0.322

ADVANCE PREMIUM: $310.00

COVERAGE DESCRIPTION: PRODUCTS/COMPLETED OPERATIONS COVERAGE



EXPOSURE: 964,102

FINAL RATE: 0.219


---------------------------------------------------------------------------

LOC/BLDG NO: 002/001 TERR: 125LOCATION: 965 PARK CENTER DR.

VISTA CA 92081

CLASSIFICATION CODE NUMBER 25421DESCRIPTION:


COVERAGE DESCRIPTION: PREMISES/OPERATIONS COVERAGE


Form SS 00 38 04 04T PageProcess Date: Policy Expiration Date:

Spectrum Supplemental Schedule of Auditable Coverages

This schedule reflects only those locations that have classes and/or coverages that are subject to audit.

Policy Number:

Entries herein, except as specifically provided elsewhere in this policy, do not modify any of the otherprovisions of this policy.

00204/10/19 06/25/20

72 SBA AP9428


EXPOSURE: 2,113,147

FINAL RATE: 0.507

ADVANCE PREMIUM: $1,071.00

COVERAGE DESCRIPTION: PRODUCTS/COMPLETED OPERATIONS COVERAGE



EXPOSURE: 2,113,147

FINAL RATE: 0.367


---------------------------------------------------------------------------TOTAL ADVANCE PREMIUM $2,367.00 DOES NOT INCLUDE TERRORISM ORFOR AUDITABLE COVERAGES ANY APPLICABLE STATE SURCHARGES OR FEES OR

MINIMUM PREMIUMS---------------------------------------------------------------------------

Form SS 00 38 04 04T PageProcess Date: Policy Expiration Date:

Spectrum Supplemental Schedule of Auditable Coverages (Continued)

Policy Number:


MANUFACTURERS STRETCH SUMMARY

SUMMARY OF COVERAGE LIMITS

This is a summary of the Coverages and the Limits of Insurance provided by the Manufacturers Stretch Coverageform SS 04 28 which is included in this policy. No coverage is provided by this summary. Refer to coverage formSS 04 28 to determine the scope of your insurance protection.

The Limit of Insurance for the following Additional Coverages are in addition to any other limit of insurance providedunder this policy:

Coverage LimitAccounts Receivable – On/Off-Premises $ 25,000Brands and Labels Up to Business Personal Property LimitClaim Expenses $ 10,000Computer Fraud $ 5,000Computers and Media $ 25,000Contract Penalty $ 1,000Debris Removal $ 25,000Employee Dishonesty (including ERISA) $ 10,000Fine Arts $ 10,000Forgery $ 10,000Laptop Computers – Worldwide Coverage $ 5,000Off Premises Utility Services – Direct Damage $ 10,000Outdoor Signs Full ValuePairs or Sets Up to Business Personal Property LimitPersonal Property of Others $ 25,000Property at Other Premises $ 10,000Salespersons’ Samples $ 50,000Sewer and Drain Back Up Included up to Covered Property LimitsSump Overflow or Sump Pump Failure $ 15,000Temperature Change $ 10,000Tenant Building and Business Personal Property Coverage-Required by Lease

$ 20,000

Transit Property in the Care of Carriers for Hire $ 10,000Unauthorized Business Card Use $ 2,500Valuable Papers and Records – On/Off-Premises $ 25,000

The Limits of Insurance for the following Coverage Extensions are a replacement of the Limit of Insurance providedunder the Standard Property Coverage Form or the Special Property Coverage Form, whichever applies to the policy:

Coverage LimitNewly Acquired or Constructed Property – 180 Days

Building $1,000,000Business Personal Property $ 500,000Business Income and Extra Expense $ 500,000

Outdoor Property $ 20,000 aggregate/ $1,000 per itemPersonal Effects $ 25,000Property Off-Premises $ 25,000

of 2 Form SS 84 08 09 07

The following changes apply only if Business Income and Extra Expense are covered under this policy. The Limits ofInsurance for the following Business Income and Extra Expense Coverages are in addition to any other Limit ofInsurance provided under this policy:

Coverage LimitBusiness Income Extension for Off-Premises Utility Services $ 25,000Business Income Extension for Web Sites $ 10,000/7 daysBusiness Income from Dependent Properties $ 25,000

The following Limit of Insurance for the following Business Income Coverage is a replacement of the Limit ofInsurance provided under the Standard Property Coverage Form or the Special Property Coverage Form, whicheverapplies to the policy:

Coverage LimitExtended Business Income 60 Days

The following changes apply only if the Special Property Coverage Form applies to this policy. The Limits of Insurancefor the following Additional Coverages are a replacement of the limit of insurance provided under the Special PropertyCoverage form:

Coverage LimitPrecious Metal Theft Payment Changes $ 10,000Theft of Patterns, Dies, Molds and Forms Up to Business Personal Property Limit

The following changes apply to Loss Payment Conditions:

Coverage LimitValuation Changes

Commodity Stock Included"Finished Stock" IncludedMercantile Stock - Sold Included

Form SS 00 05 10 08© 2008, The Hartford

COMMON POLICY CONDITIONS

Form SS 00 05 10 08

QUICK REFERENCE - SPECTRUM POLICY

DECLARATIONSand


I. DECLARATIONS

Named Insured and Mailing Address

Policy Period

Description and Business Location

Coverages and Limits of Insurance

II. COMMON POLICY CONDITIONS Beginning on Page

A. Cancellation 1

B. Changes 1

C. Concealment, Misrepresentation Or Fraud 2

D. Examination Of Your Books And Records 2

E. Inspections And Surveys 2

F. Insurance Under Two Or More Coverages 2

G. Liberalization 2

H. Other Insurance - Property Coverage 2

I. Premiums 2

J. Transfer Of Rights Of Recovery Against Others To Us 2

K. Transfer Of Your Rights And Duties Under This Policy 3

L. Premium Audit 3


(Includes copyrighted material of Insurance Services Office, Inc. with its permission)

COMMON POLICY CONDITIONSAll coverages of this policy are subject to the following conditions.

A. Cancellation

1. The first Named Insured shown in theDeclarations may cancel this policy by mailingor delivering to us advance written notice ofcancellation.

2. We may cancel this policy by mailing ordelivering to the first Named Insured writtennotice of cancellation at least:

a. 5 days before the effective date ofcancellation if any one of the followingconditions exists at any building that isCovered Property in this policy:

(1) The building has been vacant orunoccupied 60 or more consecutivedays. This does not apply to:

(a) Seasonal unoccupancy; or

(b) Buildings in the course ofconstruction, renovation oraddition.

Buildings with 65% or more of therental units or floor area vacant orunoccupied are consideredunoccupied under this provision.

(2) After damage by a Covered Cause ofLoss, permanent repairs to thebuilding:

(a) Have not started; and

(b) Have not been contracted for,

within 30 days of initial payment ofloss.

(3) The building has:

(a) An outstanding order to vacate;

(b) An outstanding demolition order;or

(c) Been declared unsafe bygovernmental authority.

(4) Fixed and salvageable items havebeen or are being removed from thebuilding and are not being replaced.This does not apply to such removalthat is necessary or incidental to anyrenovation or remodeling.

(5) Failure to:

(a) Furnish necessary heat, water,sewer service or electricity for 30consecutive days or more, exceptduring a period of seasonalunoccupancy; or

(b) Pay property taxes that are owingand have been outstanding formore than one year following thedate due, except that thisprovision will not apply where youare in a bona fide dispute with thetaxing authority regarding paymentof such taxes.

b. 10 days before the effective date ofcancellation if we cancel for nonpaymentof premium.

c. 30 days before the effective date ofcancellation if we cancel for any otherreason.

3. We will mail or deliver our notice to the firstNamed Insured's last mailing address knownto us.

4. Notice of cancellation will state the effectivedate of cancellation. The policy period will endon that date.

5. If this policy is canceled, we will send the firstNamed Insured any premium refund due.Such refund will be pro rata. If the first NamedInsured cancels, the refund may be less thanpro rata. The cancellation will be effective evenif we have not made or offered a refund.

6. If notice is mailed, proof of mailing will besufficient proof of notice.

B. Changes

This policy contains all the agreements between youand us concerning the insurance afforded. The firstNamed Insured shown in the Declarations isauthorized to make changes in the terms of this policywith our consent. This policy's terms can beamended or waived only by endorsement issuedby us and made a part of this policy.


Page 2 of 3 Form SS 00 05 10 08

C. Concealment, Misrepresentation Or Fraud

This policy is void in any case of fraud by you as itrelates to this policy at any time. It is also void if youor any other insured, at any time, intentionally concealor misrepresent a material fact concerning:

1. This policy;

2. The Covered Property;

3. Your interest in the Covered Property; or

4. A claim under this policy.

D. Examination Of Your Books And Records

We may examine and audit your books andrecords as they relate to the policy at any timeduring the policy period and up to three yearsafterward.

E. Inspections And Surveys

1. We have the right but are not obligated to:

a. Make inspections and surveys at any time;

b. Give you reports on the conditions we find;and

c. Recommend changes.

2. Any inspections, surveys, reports orrecommendations will relate only to insurabilityand the premiums to be charged. We do notmake safety inspections. We do notundertake to perform the duty of any person ororganization to provide for the health or safetyof any person. We do not represent or warrantthat conditions:

a. Are safe or healthful; or

b. Comply with laws, regulations, codes orstandards.

3. This condition applies not only to us, but alsoto any rating, advisory, rate service or similarorganization which makes insuranceinspections, surveys, reports orrecommendations on our behalf.

F. Insurance Under Two Or More Coverages

If two or more of this policy's coverages apply tothe same loss or damage, we will not pay morethan the actual amount of the loss or damage.

G. Liberalization

If we adopt any revision that would broaden thecoverage under this policy without additionalpremium within 45 days prior to, or at any timeduring, the policy period, the broadened coveragewill immediately apply to this policy.

H. Other Insurance - Property Coverage

If there is other insurance covering the same lossor damage, we will pay only for the amount ofcovered loss or damage in excess of the amount

due from that other insurance, whether you cancollect on it or not. But we will not pay more thanthe applicable Limit of Insurance.

I. Premiums

1. The first Named Insured shown in theDeclarations:

a. Is responsible for the payment of allpremiums; and

b. Will be the payee for any return premiumswe pay.

2. The premium shown in the Declarations wascomputed based on rates in effect at the timethe policy was issued. If applicable, on eachrenewal, continuation or anniversary of theeffective date of this policy, we will computethe premium in accordance with our rates andrules then in effect.

3. With our consent, you may continue this policyin force by paying a continuation premium foreach successive one-year period. Thepremium must be:

a. Paid to us prior to the anniversary date; and

b. Determined in accordance with Paragraph2. above.

Our forms then in effect will apply. If you donot pay the continuation premium, this policywill expire on the first anniversary date that wehave not received the premium.

4. Changes in exposures or changes in yourbusiness operation, acquisition or use oflocations that are not shown in the Declarationsmay occur during the policy period. If so, we mayrequire an additional premium. That premium willbe determined in accordance with our rates andrules then in effect.

J. Transfer Of Rights Of Recovery Against OthersTo Us

Applicable to Property Coverage:

If any person or organization to or for whom wemake payment under this policy has rights torecover damages from another, those rights aretransferred to us to the extent of our payment.That person or organization must do everythingnecessary to secure our rights and must donothing after loss to impair them. But you maywaive your rights against another party in writing:

1. Prior to a loss to your Covered Property; or

2. After a loss to your Covered Property only if, attime of loss, that party is one of the following:


Form SS 00 05 10 08 Page 3 of 3

a. Someone insured by this insurance;

b. A business firm:

(1) Owned or controlled by you; or

(2) That owns or controls you; or

c. Your tenant.

You may also accept the usual bills of lading orshipping receipts limiting the liability of carriers.

This will not restrict your insurance.

K. Transfer Of Your Rights And Duties Under ThisPolicy

Your rights and duties under this policy may not betransferred without our written consent except inthe case of death of an individual Named Insured.

If you die, your rights and duties will be transferredto your legal representative but only while actingwithin the scope of duties as your legalrepresentative. Until your legal representative is

appointed, anyone having proper temporarycustody of your property will have your rights andduties but only with respect to that property.

L. Premium Audit

a. We will compute all premiums for this policy inaccordance with our rules and rates.

b. The premium amount shown in theDeclarations is a deposit premium only. At theclose of each audit period we will compute theearned premium for that period. Anyadditional premium found to be due as a resultof the audit are due and payable on notice tothe first Named Insured. If the depositpremium paid for the policy term is greaterthan the earned premium, we will return theexcess to the first Named Insured.

c. The first Named Insured must maintain allrecords related to the coverage provided bythis policy and necessary to finalize thepremium audit, and send us copies of thesame upon our request.

Our President and Secretary have signed this policy. Where required by law, the Declarations page has also beencountersigned by our duly authorized representative.


SPECIAL PROPERTY COVERAGE FORM

Form SS 00 07 07 05

QUICK REFERENCE

SPECIAL PROPERTY COVERAGE FORMREAD YOUR POLICY CAREFULLY

SPECIAL PROPERTY COVERAGE FORM Beginning on Page

A. COVERAGES 1

Covered Property 1Property Not Covered 1Covered Causes of Loss 2Limitations 2Additional Coverages 3Coverage Extensions 13

B. EXCLUSIONS 16

C. LIMITS OF INSURANCE 18

D. DEDUCTIBLES 19

E. PROPERTY LOSS CONDITIONS 19

Abandonment 20Appraisal 20Duties in the Event of Loss or Damage 20Legal Action Against Us 20Loss Payment 20Recovered Property 22Resumption of Operations 22Vacancy 22

F. PROPERTY GENERAL CONDITIONS 23

Control of Property 23Mortgage Holders 23No Benefit to Bailee 24Policy Period, Coverage Territory 24

G. PROPERTY DEFINITIONS 24

Form SS 00 07 07 05 Page 1 of 25

SPECIAL PROPERTY COVERAGE FORMVarious provisions in this policy restrict coverage. Read the entire policy carefully to determine rights, duties, andwhat is and is not covered.

Throughout this policy the words "you" and "your" refer to the Named Insured shown in the Declarations. The words"we," "us" and "our" refer to the Company providing this insurance.

Other words and phrases that appear in quotation marks have special meaning. Refer to the SECTION G -PROPERTY DEFINITIONS.

A. COVERAGE

We will pay for direct physical loss of or physicaldamage to Covered Property at the premisesdescribed in the Declarations (also called"scheduled premises" in this policy) caused by orresulting from a Covered Cause of Loss.

1. Covered Property

Covered Property as used in this policy, meansthe following types of property for which a Limitof Insurance is shown in the Declarations:

a. Buildings, meaning only building(s) andstructure(s) described in the Declarations,including:

(1) Completed additions;

(2) Permanently installed:

(a) Fixtures;

(b) Machinery; and

(c) Equipment;

(3) Outdoor fixtures;

(4) Your personal property in apartments,rooms or common areas furnished byyou as landlord;

(5) Building Glass, meaning glass that ispart of a building or structure;

(6) Personal property owned by you that isused to maintain or service the buildingsor structures on the premises, including:

(a) Fire extinguishing equipment;

(b) Outdoor furniture;

(c) Floor coverings; and

(d) Appliances used for refrigerating,ventilating, cooking, dishwashingor laundering; and

(7) If not covered by other insurance:

(a) Additions under construction,alterations and repairs to thebuildings or structures;

(b) Materials, equipment, supplies andtemporary structures, on or within1,000 feet of the "scheduledpremises", used for makingadditions, alterations or repairs tothe buildings or structures.

b. Business Personal Property located in oron the building(s) described in theDeclarations at the "scheduled premises"or in the open (or in a vehicle) within 1,000feet of the "scheduled premises", including:

(1) Property you own that is used in yourbusiness;

(2) Tools and equipment owned by youremployees, which are used in yourbusiness operations;

(3) Property of others that is in your care,custody or control;

(4) “Tenant Improvements andBetterments”; and

(5) Leased personal property for whichyou have contractual responsibility toinsure, unless otherwise provided forunder Personal Property of Others.

2. Property Not Covered

Covered Property does not include:

a. Aircraft, automobiles, motor trucks andother vehicles subject to motor vehicleregistration;

b. Automobiles held for sale;

c. "Money”, bullion, numismatic and philatelicproperty and bank notes or "securities"except as provided in any AdditionalCoverages or Optional Coverages. Lotterytickets held for sale and postage stamps incurrent use and having face value are not"securities".

d. Contraband, or property in the course ofillegal transportation or trade;


Page 2 of 25 Form SS 00 07 07 05

e. Land (including land on which the propertyis located), water, growing crops or lawns;

f. Outdoor fences, radio or television antennas(including satellite dishes), including theirlead in wiring, masts or towers, signs (otherthan signs attached to buildings), trees,shrubs or plants (other then those held forsale or sold but not delivered), except as anyof these may be provided in the:

(1) Outdoor Property Coverage Extension;or

(2) Outdoor Signs Optional Coverage;

g. Watercraft (including motors, equipmentand accessories) while afloat;

h. The cost to research, replace or restore theinformation on "valuable papers andrecords", except as may be provided in anyCoverage Extensions or Optional Coverages.

i. "Data" and "software" which exists onelectronic "media" including the cost toresearch, replace or restore them, exceptas may be provided for in any AdditionalCoverages or Optional Coverages.

j. Accounts, bills, food stamps, other evidencesof debt, accounts receivable or "valuablepapers and records"; except as otherwiseprovided for in this policy.

3. Covered Causes of Loss

RISKS OF DIRECT PHYSICAL LOSS unlessthe loss is:

a. Excluded in Section B., EXCLUSIONS; or

b. Limited in Paragraph A.4. Limitations; thatfollow.

4. Limitations

a. We will not pay for direct loss of or damageto:

(1) Property that is missing, where theonly evidence of the direct physicalloss or physical damage is a shortagedisclosed on taking inventory, or otherinstances where there is no physicalevidence to show what happened tothe property. This limitation does notapply to the Additional Coverage for"Money" and "Securities".

(2) Property that has been transferred to aperson or to a place outside the"scheduled premises" on the basis ofunauthorized instructions.

(3) The interior of any building or structurecaused by or resulting from rain, snow,sleet, ice, sand or dust, whether drivenby wind or not, unless:

(a) The building or structure firstsustains physical damage by a

Covered Cause of Loss to its roofor walls through which the rain,snow, sleet, ice, sand or dustenters; or

(b) The direct physical loss or physicaldamage is caused by or resultsfrom thawing of snow, sleet, or iceon the building or structure.

b. Pets and animals are covered only if:

(1) They are inside the building; and

(2) They are owned by others andboarded by you, or owned by you andheld for sale or sold but not delivered.

And then we will pay only if they are killed,stolen, or their destruction is madenecessary by a "specified cause of loss".

c. For direct physical loss or physicaldamage by “theft”, the following types ofproperty are covered only up to the limitsshown:

(1) $2,500 for furs, fur garments andgarments trimmed with fur;

(2) $5,000 for jewelry, watches, watchmovements, jewels, pearls, preciousand semi-precious stones, bullion,gold, silver, platinum and otherprecious alloys or metals. This limitdoes not apply to jewelry and watchesworth $500 or less per item;

(3) $2,500 for patterns, dies, molds andforms; and

(4) $500 for stamps, lottery tickets held forsale and letters of credit.

d. Unless specifically provided under a separateendorsement and with a specific Limit ofInsurance indicated in the Declarations, wewill not pay for direct physical loss of orphysical damage to "perishable stock"caused by or resulting from:(1) A change in temperature or humidity

resulting from:

(a) Mechanical breakdown or failure of:

(i) Stationary heating plants; or

(ii) Refrigerating, cooling, orhumidity control apparatus orequipment;

(b) Artificially generated electriccurrent, including electric arcing,that disturbs electrical devices,appliances or wires; or

(c) Complete or partial failure ofelectric power on your "scheduledpremises".

(2) Contamination by refrigerant.


Form SS 00 07 07 05 Page 3 of 25

5. Additional Coverages

a. Collapse

(1) With respect to Buildings:

(a) Collapse means an abrupt fallingdown or caving in of a building orany part of a building with theresult that the building cannot beoccupied for its intended purpose;

(b) A building or any part of a buildingthat is in danger of falling down orcaving in is not considered to be ina state of collapse;

(c) A part of a building that is standingis not considered to be in a state ofcollapse even if it has separatedfrom another part of the building;

(d) A building that is standing or anypart of a building that is standing isnot considered to be in a state ofcollapse even if it shows evidenceof cracking, bulging, sagging,bending, leaning, settling,shrinkage, or expansion.

(2) We will pay for direct physical loss orphysical damage caused by or resultingfrom risks of collapse of a building or anypart of a building that is insured by thispolicy caused only by one or more of thefollowing:

(a) "Specified cause of loss" orbreakage of building glass, if suchloss or breakage was covered bythis policy;

(b) Decay that is hidden from view,unless the presence of such decaywas known to an insured prior tocollapse;

(c) Insect or vermin damage that ishidden from view, unless thepresence of such damage is knownto an insured prior to collapse;

(d) Weight of people or personalproperty;

(e) Weight of rain that collects on aroof; and

(f) Use of defective material or methodsin construction, remodeling orrenovation if the collapse occursduring the course of theconstruction, remodeling orrenovation.

The criteria set forth in Paragraphs(1)(a) through (1)(d) do not limit thecoverage otherwise provided underthis Additional Coverage for theCauses of Loss listed in Paragraph(2)(a), (2)(d), and (2)(e).

(3) If the collapse is caused by a CoveredCause of Loss listed in Paragraphs(2)(b) through (2)(f), we will pay fordirect physical loss of or physicaldamage to the property listed below,but only if such physical loss orphysical damage is a direct result ofthe collapse of a building insuredunder this policy, and the property isproperty covered under this policy:

(a) Awnings; gutters and downspouts;yard fixtures; outdoor swimmingpools; piers, wharves and docks;beach or diving platforms orappurtenances; retaining walls;walks, roadways and other pavedsurfaces.

(4) If personal property abruptly falls downor caves in and such collapse is notthe result of collapse of a building, wewill pay for loss or damage to CoveredProperty caused by such collapse ofpersonal property only if(a) The collapse was caused by a

cause of loss listed in Paragraphs(2)(a) through (2)(f) of thisAdditional Coverage;

(b) The personal property whichcollapses is inside a building; and

(c) The property which collapses isnot of a kind listed in Paragraph(3) above, regardless of whetherthat kind of property is consideredto be personal property or realproperty.

The coverage stated in this Paragraph(4) does not apply to personal propertyif marring or scratching is the onlydamage to that personal propertycaused by the collapse.

Collapse of personal property does notmean cracking, bulging, sagging,bending, leaning, settling, shrinkage orexpansion.

(5) This Additional Coverage, Collapse,will not increase the Limits ofInsurance provided in this policy.


Page 4 of 25 Form SS 00 07 07 05

b. Debris Removal

(1) We will pay your expense to removedebris of Covered Property caused byor resulting from a Covered Cause ofLoss that occurs during the policyperiod. The expenses will be paid onlyif they are reported to us in writingwithin 180 days of the earlier of:

(a) The date of direct physical loss orphysical damage; or

(b) The end of the policy period.

(2) The most we will pay under thisadditional Coverage is 25% of theamount we pay for the direct loss of orphysical damage to Covered Propertyplus the deductible in this policyapplicable to that physical loss orphysical damage.

But this limitation does not apply toany additional Debris Removal limitprovided in the Limits of Insurancesection.

(3) This Additional Coverage does notapply to costs to:

(a) Extract "pollutants andcontaminants" from land; or

(b) Remove, restore or replacepolluted or contaminated land orwater.

c. Equipment Breakdown

(1) We will pay for direct physical loss orphysical damage caused by orresulting from an EquipmentBreakdown Accident to EquipmentBreakdown Property.

Equipment Breakdown Accidentmeans:

(a) Mechanical breakdown, includingrupture or bursting caused bycentrifugal force.

(b) Artificially generated electriccurrent, including electric arcing,that disturbs electrical devices,appliances or wires.

(c) Explosion of steam boilers, steampiping, steam engines or steamturbines owned or leased by you,or operated under your control.

(d) Physical loss or physical damageto steam boilers, steam pipes,steam engines or steam turbines

caused by or resulting from anycondition or event inside suchboilers or equipment.

(e) Physical loss or physical damageto hot water boilers or other waterheating equipment caused by orresulting from any condition orevent inside such boilers orequipment.

Equipment Breakdown Propertymeans Covered Property built tooperate under vacuum or pressure,other than weight of contents, or usedfor the generation, transmission orutilization of energy.

The following is not EquipmentBreakdown Property:

(a) Any structure, foundation, cabinet,compartment or air supportedstructure building;

(b) Any insulating or refractorymaterial;

(c) Any sewer piping, any undergroundvessels or piping, any piping forminga part of a sprinkler system, waterpiping other than boiler feed waterpiping, boiler condensate returnpiping, or water piping forming a partof a refrigerating or air conditioningsystem;

(d) Any vehicle or any equipmentmounted on a vehicle. As usedhere, vehicle means any machineor apparatus that is used fortransportation or moves under itsown power. Vehicle includes, butis not limited to, car, truck, bus,trailer, train, aircraft, watercraft,forklift, bulldozer, tractor orharvester. However, any propertythat is stationary, permanentlyinstalled at a “scheduled premises”and that receives electrical powerfrom an external power source willnot be considered a vehicle.

(e) Any equipment manufactured byyou for sale.

(2) Coverage Extensions

The following coverage extensionsapply only to direct physical loss orphysical damage caused by orresulting from an EquipmentBreakdown Accident:


Form SS 00 07 07 05 Page 5 of 25

(a) Hazardous Substances

We will pay in any one occurrencefor the additional cost, not toexceed $50,000, to repair orreplace Covered Property becauseof contamination by a hazardoussubstance. This includes theexpenses to clean up or dispose ofsuch property. Hazardoussubstance means any substancethat is hazardous to human healthor that has been declared by agovernment agency to behazardous to human health.

Additional cost in this extensionmeans those beyond what wouldhave been required had nohazardous substance beeninvolved.

This limit is part of and not inaddition to the Limits of Insurancefor Covered Property.

(b) Expediting Expenses

With respect to your damagedCovered Property, we will pay inany one occurrence, up to$50,000, for the reasonable andnecessary additional expensesyou incur to:

(i) Make temporary repairs; or

(ii) Expedite permanent repairs orpermanent replacement.

(c) Defense

If a claim or "suit" is broughtagainst you alleging that you areliable for damage to property ofanother in your care, custody orcontrol directly caused byEquipment Breakdown we willeither:

(i) Settle the claim or "suit"; or

(ii) Defend you against the claimor "suit," but keep forourselves the right to settle itat any point.

(d) Supplementary Payments

We will pay, with respect to anyclaim or "suit" we defend:

(i) All expenses we incur;

(ii) The cost of bonds to releaseattachments, but only for bond

amounts within the Limit ofInsurance. We do not have tofurnish these bonds;

(iii) All reasonable expensesincurred by you at our requestto assist us in the investigationor defense of the claim or"suit" including actual loss ofearnings up to $100 a daybecause of time off from work;

(iv) All costs taxed against you inany "suit" we defend;

(v) Prejudgment interest awardedagainst you on that part of thejudgment we pay. If we makean offer to pay the applicableLimit of Insurance, we will notpay any prejudgment interestbased on that period of timeafter the offer; and

(vi) All interest on the full amountof any judgment that accruesafter entry of the judgment andbefore we have paid, offeredto pay, or deposited in courtthe part of the judgment that iswithin the Limit of Insuranceshown in the Declarations.

These payments will not reducethe Limit of Insurance shown in theDeclarations.

(e) Business Income and ExtraExpense Extension

The Business Income and ExtraExpense Additional Coverages areextended to provide coverage for atenant who has a loss of incomefrom the lack of heating, cooling orpower as a result of equipmentbreakdown to mechanical,electrical or pressure equipment ofthe building owner.

(f) If Equipment Breakdown Propertyrequires replacement due to anEquipment Breakdown Accident,we will pay your additional cost toreplace it with equipment that isbetter for the environment, safer ormore efficient than the equipmentbeing replaced. However, we willnot pay more than 125% of whatthe cost would have been to repairor replace with property of


Page 6 of 25 Form SS 00 07 07 05

comparable material and quality.This coverage does not increaseany of the applicable limits. Thiscoverage does not apply to anyproperty indicated as being valuedon an Actual Cash Value basis.

If you wish to retrofit airconditioning or refrigerationequipment that utilizes arefrigerant containing CFC(chlorofluorocarbon) substances toaccept a non-CFC refrigerant orreplace the system with a systemusing a non-CFC refrigerant, wewill consider this better for theenvironment. Any associatedBusiness Income or ExtraExpense will be included indetermining the additional cost, ifBusiness Income and ExtraExpense apply to this policy.

(3) Additional Condition - Bankruptcy

The bankruptcy or insolvency of you oryour estate will not relieve us of anyobligation under this AdditionalCoverage.

(4) Jurisdictional Inspections:

If any boiler or pressure vesselrequires inspection to comply withstate or municipal boiler and pressurevessel regulations, we agree toperform such inspection on yourbehalf.

d. Fire Department Service Charge

When the fire department is called to saveor protect Covered Property from aCovered Cause of Loss, we will pay up to$25,000 in any one occurrence for yourliability for fire department service charges:

(1) Assumed by contract or agreementprior to loss; or

(2) Required by local ordinance.

e. Fire Extinguisher Recharge

We will pay to cover your expenses forrecharge of your hand fire extinguisherswhen they are emptied while fighting fire.

f. Forgery

(1) We will pay for loss resulting directlyfrom forgery or alteration of any check,draft, promissory note, or similar writtenpromises, orders or directions to pay asum certain in "money" that you or your

agent has issued, or that was issued bysomeone who impersonates you or youragent. This includes written instrumentsrequired in conjunction with any credit,debit, or charge card issued to you orany "employee" for business purposes.

(2) If you are sued for refusing to pay anyCovered Instrument on the basis that ithas been forged or altered, and youhave our written consent to defendagainst the “suit”, we will pay for anyreasonable expenses that you incurand pay in that defense.

(3) We will pay for loss resulting directlyfrom your having accepted in goodfaith, in exchange for merchandise,"money" or services:(a) Money orders, including counterfeit

money orders, of any United Statesor Canadian post office, expresscompany or national or state (orCanadian) chartered bank that arenot paid upon presentation; and

(b) Counterfeit United States orCanadian paper currency.

(4) The most we will pay in any oneoccurrence, including legal expenses,under this Additional Coverage is $5,000,unless a higher Limit of Insurance isshown in the Declarations.

g. Glass Expense

We will pay for necessary expensesincurred to:

(1) Put up temporary plates or board upopenings if repair or replacement ofdamaged glass is delayed;

(2) Repair or replace encasing frames;and

(3) Remove or replace obstructions whenrepairing or replacing glass that is partof a building.

This does not include removing orreplacing window displays.

h. Lock and Key Replacement

We will pay up to $1,000 in any oneoccurrence for the re-keying of locks or therepair or replacement of locks at"scheduled premises" following the theft orthe attempted theft of keys by burglars.

i. Money and Securities

(1) We will pay for loss of "money" and"securities" used in your business while


Form SS 00 07 07 05 Page 7 of 25

at a bank or savings institution, withinyour living quarters or the Iiving quartersof your partners or any employee havinguse and custody of the property, at the"scheduled premises", or in transitbetween any of these places, resultingdirectly from:

(a) “Theft”;(b) Disappearance; or(c) Destruction.

(2) In addition to the Limitations andExclusions applicable to propertycoverage, we will not pay for loss:

(a) Resulting from accounting orarithmetical errors or omissions;

(b) Due to the giving or surrenderingof property in any exchange orpurchase; or

(c) Of property contained in any"money"-operated device unless acontinuous recording instrument inthe device records the amount of"money" deposited in the “money”-operated device.

(3) The most we will pay for loss in anyone occurrence is:

(a) The limit shown in the Declarationsfor Inside the Premises for"money" and "securities" while:

(i) In or on the "scheduledpremises"; or

(ii) Within a bank or savingsinstitution; and

(b) The limit shown in the Declarationsfor Outside the Premises for"money" and "securities" whileanywhere else.

(4) All loss:

(a) Caused by one or more persons;or

(b) Involving a single act or series ofrelated acts;

is considered one occurrence.

(5) You must keep records of all "money"and "securities" so we can verify theamount of any loss or damage.

j. Ordinance or Law

(1) If a Covered Cause of Loss occurs tocovered Building property, we will payon a “scheduled premises” any of thefollowing costs that are caused byenforcement of an ordinance or law:

Undamaged Part

(a) For loss to the undamaged portionof the Building that requires thedemolition of parts of the sameproperty not damaged by aCovered Cause of Loss providedthat any such ordinance or lawresulting in this type of loss:(i) Regulates the construction or

repair of buildings, orestablishes zoning or land userequirements at the“scheduled premises”; and

(ii) Is in force at the time of theloss.

The most we will pay in any oneoccurrence for this coverage is$25,000 as a Limit of Insurance.

Demolition Cost

(b) The cost to demolish and clear thesite of undamaged parts of theproperty caused by enforcement ofa building, zoning or land useordinance or law.


Increased Cost of Construction

(c) The increased cost to repair,rebuild or reconstruct the coveredproperty, caused by enforcementof a building, zoning or land useordinance or law.


“Tenants Improvements andBetterment”

(d) The increased cost to repair,rebuild or reconstruct “tenant’simprovements and betterments”caused by enforcement of building,zoning or land use ordinance orlaw.


(2) Additional Exclusions

We will not pay under this AdditionalCoverage for:

(a) The enforcement of any ordinanceor law which requires thedemolition, repair, replacement,reconstruction, remodeling or


Page 8 of 25 Form SS 00 07 07 05

remediation of property due tocontamination by “pollutants andcontaminants” or due to thepresence, growth, proliferation,spread of any activity of “fungi”,wet or dry rot, bacteria or virus; or

(b) The costs associated with theenforcement of any ordinance orlaw which requires any insured orothers to test for, monitor, cleanup, remove, contain, treat, detoxifyor neutralize, or in any wayrespond to, or assess the effectsof “pollutants or contaminants”,“fungi”, wet or dry rot, bacteria orvirus.

(c) Loss caused by, resulting from,contributed to or aggravated byearthquake or volcanic eruption.

(d) Loss due to an ordinance or lawthat:

(i) You were required to complywith before the loss even if thebuilding was undamaged; and

(ii) You failed to comply with.

(3) Additional Limitations – Loss toUndamaged Portion of Building

Subject to the limit stated in ParagraphA.5.j.(1)(a), the insurance providedunder this Additional Coverage for lossin value to the undamaged portion ofthe building is limited as follows:

(a) If Replacement Cost applies andthe property is repaired orreplaced on the same or anotherpremises, we will not pay more forphysical loss of or physicaldamage to designated Buildingproperty, including loss caused byenforcement of an ordinance orlaw, than:

(i) The amount you actually spendto repair, rebuild or reconstructthe Building, but not for morethan the amount it would cost torestore the Building on the samepremises; and

(ii) The amount it would cost torestore the undamaged portionto the same height, floor area,style and comparable quality ofthe original property insured.

(b) If the Building(s) Full ValueEndorsement applies and theproperty is repaired or replaced onthe same or another premises, wewill not pay more for physical loss ofor physical damage to designatedBuilding property, including losscaused by enforcement of anordinance or law, than:

(i) The amount you actually spendto repair, rebuild or reconstructthe Building, but not for morethan the amount it would cost torestore the Building on the samepremises; and

(ii) The amount it would cost torestore the undamaged portionto the same height, floor area,style and comparable quality ofthe original property insured.

(c) If Replacement Cost or theBuilding(s) Full ValueEndorsement applies and theproperty is not repaired orreplaced, or if Actual Cash Valueapplies, then we will not pay morefor physical loss of or physicaldamage to designated Buildingproperty, including loss caused byenforcement of an ordinance orlaw, than the lesser of:

(i) The Actual Cash Value of theBuilding at the time of loss; or

(ii) The Limit of Insuranceapplicable to the coveredBuilding property stated inParagraph A.5.j.(1)(a).

(4) Additional Limitation – DemolitionCost

We will not pay more than the lesserof:

(a) The amount actually spent todemolish and clear the site of the“scheduled premises”; or

(b) The applicable Demolition CostLimit of Insurance as stated inParagraph A.5.j.(1)(b).

(5) Additional Limitation – IncreasedCost of Construction

The insurance provided under thisAdditional Coverage for increased costof construction is limited as follows:

(a) We will not pay:


Form SS 00 07 07 05 Page 9 of 25

(i) Until the property is actuallyrepaired or replaced, at thesame or another premises;and

(ii) Unless the repairs orreplacements are made assoon as reasonably possibleafter the physical loss orphysical damage, not toexceed two years. We mayextend this period in writingduring the two years.

(b) If the Building is repaired orreplaced at the same premises, orif you elect to rebuild at anotherpremises, the most we will pay isthe lesser of:

(i) The increased cost ofconstruction at the samepremises; or

(ii) The applicable Increased Costof Construction Limit ofInsurance stated in ParagraphA.5.j.(1)(c).

(c) If the ordinance or law requiresrelocation to another premises, themost we will pay is the lesser of:

(i) The Increased Cost ofConstruction at the newpremises; or

(ii) The applicable Increased Costof Construction Limit ofInsurance stated in ParagraphA.5.j.(1)(c).

k. “Pollutants and Contaminants” CleanUp and Removal

We will pay your expense to extract"pollutants and contaminants" from land orwater at the "scheduled premises" if thedischarge, dispersal, seepage, migration,release or escape of the “pollutants andcontaminants” is caused by or results froma Covered Cause of Loss that occursduring the policy period. The expenses willbe paid only if they are reported to us inwriting within 180 days of the earlier of:

(1) The date of direct physical loss orphysical damage; or

(2) The end of the policy period.

The most we will pay in any oneoccurrence for each location under thisAdditional Coverage is $15,000 for thesum of all such expenses arising out ofCovered Causes of Loss.

l. Preservation of Property

If it is necessary to move CoveredProperty from the "scheduled premises" topreserve it from direct physical loss orphysical damage by a Covered Cause ofLoss, we will pay for any direct physicalloss of or physical damage to that property:

(1) While it is being moved or whiletemporarily stored at another location;and

(2) Only if the direct physical loss orphysical damage occurs within 45days after the property is first moved.

m. Theft Damage to Building

This Additional Coverage applies only topremises where you are a tenant and areresponsible in the lease for physical loss orphysical damage to the building you lease,rent, or occupy that is caused by or resultsfrom “theft”, burglary or robbery.

We will pay for direct physical loss orphysical damage directly resulting from“theft”, burglary or robbery (except loss by fireor explosion) to a building:

(1) You occupy, including personalproperty that is used to maintain orservice the building; or

(2) Containing covered personal propertyif you are legally liable for suchphysical loss or physical damage.

But we will not pay for such physical lossof or physical damage to property that isaway from the "scheduled premises".

n. Water Damage, Other Liquid, Powder orMolten Material Damage

If direct physical loss or physical damagecaused by or resulting from covered wateror other liquid, powder or molten materialdamage loss occurs, we will also pay thecost to tear out and replace any part of thebuilding or structure to repair damage tothe system or appliance from which thewater or other substance escapes.

We will not pay the cost to repair any defectthat caused the direct physical loss orphysical damage except as provided inparagraph A.5.c., Equipment Breakdown ofthis coverage form. But we will pay the costto repair or replace damaged parts of fireextinguishing equipment if the damage:

(1) Results in discharge of any substancefrom an automatic fire protectionsystem; or


Page 10 of 25 Form SS 00 07 07 05

(2) Is directly caused by freezing.

o. Business Income

(1) We will pay for the actual loss ofBusiness Income you sustain due tothe necessary suspension of your"operations" during the "period ofrestoration". The suspension must becaused by direct physical loss of orphysical damage to property at the"scheduled premises", includingpersonal property in the open (or in avehicle) within 1,000 feet of the“scheduled premises”, caused by orresulting from a Covered Cause ofLoss.

(2) With respect to the requirements setforth in the preceding paragraph, if youoccupy only part of the site at whichthe “scheduled premises” are located,your “scheduled premises” alsomeans:

(a) The portion of the building whichyou rent, lease or occupy; and

(b) Any area within the building or onthe site at which the “scheduledpremises” are located, but only ifthat area services, or is used togain access to, the “scheduledpremises”.

(3) We will only pay for loss of BusinessIncome that occurs within 12consecutive months after the date ofdirect physical loss or physicaldamage.

This Additional Coverage is not subjectto the Limits of Insurance.

(4) Business Income means the:

(a) Net Income (Net Profit or Lossbefore income taxes) that wouldhave been earned or incurred if nodirect physical loss or physicaldamage had occurred; and

(b) Continuing normal operatingexpenses incurred, includingpayroll.

(5) With respect to the coverage providedin this Additional Coverage,suspension means:

(a) The partial slowdown or completecessation of your businessactivities; or

(b) That part or all of the “scheduledpremises” is rendereduntentantable as a result of aCovered Cause of Loss ifcoverage for Business Incomeapplies to the policy.

p. Extra Expense

(1) We will pay reasonable and necessaryExtra Expense you incur during the"period of restoration" that you wouldnot have incurred if there had been nodirect physical loss or physicaldamage to property at the "scheduledpremises", including personal propertyin the open (or in a vehicle) within1,000 feet, caused by or resulting froma Covered Cause of Loss.

(2) With respect to the requirements setforth in the preceding paragraph, if youoccupy only part of the site at whichthe “scheduled premises” are located,your “scheduled premises” alsomeans:

(a) The portion of the building whichyou rent, lease or occupy; and

(b) Any area within the building or onthe site at which the “scheduledpremises” are located, but only ifthat area services, or is used togain access to, the “scheduledpremises”.

(3) Extra Expense means expenseincurred:

(a) To avoid or minimize thesuspension of business and tocontinue "operations":

(i) At the "scheduled premises";or

(ii) At replacement premises or attemporary locations, including:

(aa)Relocation expenses; and

(bb)Cost to equip and operatethe replacement ortemporary location, otherthan those costsnecessary to repair or toreplace damaged stockand equipment.

(b) To minimize the suspension ofbusiness if you cannot continue"operations".

(c) (i) To repair or replace anyproperty; or


Form SS 00 07 07 05 Page 11 of 25

(ii) To research, replace orrestore the lost information ondamaged "valuable papersand records";

to the extent it reduces theamount of loss that otherwisewould have been payableunder this Additional Coverageor Additional Coverage o.,Business Income.

We will only pay for ExtraExpense that occurs within 12consecutive months after thedate of direct physical loss orphysical damage. ThisAdditional Coverage is notsubject to the Limits ofInsurance.

(4) With respect to the coverage providedin this Additional Coverage,suspension means:

(a) The partial slowdown or completecessation of your businessactivities; or

(b) That part or all of the “scheduledpremises” is rendereduntentantable as a result of aCovered Cause of Loss ifcoverage for Extra Expenseapplies to the policy.

(5) Limitation

This Extra Expense Coverage does notapply to:

(a) Any deficiencies in insuringbuilding or business personalproperty; or

(b) Any expense related to any recallof products you manufacture,handle or distribute.

q. Civil Authority

(1) This insurance is extended to apply tothe actual loss of Business Income yousustain when access to your "scheduledpremises" is specifically prohibited byorder of a civil authority as the directresult of a Covered Cause of Loss toproperty in the immediate area of your"scheduled premises".

(2) The coverage for Business Income willbegin 72 hours after the order of a civilauthority and coverage will end at theearlier of:

(a) When access is permitted to your"scheduled premises"; or

(b) 30 consecutive days after theorder of the civil authority.

r. Extended Business Income

(1) If the necessary suspension of your"operations" produces a BusinessIncome loss payable under this policy,we will pay for the actual loss ofBusiness Income you incur during theperiod that:

(a) Begins on the date property isactually repaired, rebuilt or replacedand "operations" are resumed; and

(b) Ends on the earlier of:

(i) The date you could restoreyour "operations" withreasonable speed, to thecondition that would haveexisted if no direct physicalloss or damage occurred; or

(ii) 30 consecutive days after thedate determined in (1)(a)above.

Loss of Business Income must becaused by direct physical loss orphysical damage at the "scheduledpremises" caused by or resulting froma Covered Cause of Loss.

(2) With respect to the coverage provided inthis Additional Coverage, suspensionmeans:

(a) The partial slowdown or completecessation of your business activities;and

(b) That a part or all of the "scheduledpremises" is rendered untenantableas a result of a Covered Cause ofLoss.

s. Business Income from DependentProperties

(1) We will pay for the actual loss ofBusiness Income you sustain due todirect physical loss or physical damageat the premises of a dependent propertycaused by or resulting from a CoveredCause of Loss.

The most we will pay under thisAdditional Coverage is $5,000 in anyone occurrence unless a higher Limitof Insurance is indicated in theDeclarations.


Page 12 of 25 Form SS 00 07 07 05

(2) We will reduce the amount of yourBusiness Income loss, other thanExtra Expense, to the extent you canresume "operations", in whole or inpart, by using any other available:

(a) Source of materials; or

(b) Outlet for your products.

(3) If you do not resume "operations", ordo not resume "operations" as quicklyas possible, we will pay based on thelength of time it would have taken toresume "operations" as quickly aspossible.

(4) Dependent Property means propertyowned, leased or operated by otherswhom you depend on to:

(a) Deliver materials or services toyou or to others for your account.But services do not include:

(i) Water, communication, powerservices or any other utilityservices; or

(ii) Any type of web site, orInternet service.

(b) Accept your products or services;

(c) Manufacture your products fordelivery to your customers undercontract for sale; or

(d) Attract customers to your businesspremises.

The dependent property must belocated in the coverage territory of thispolicy.

(5) The coverage period for BusinessIncome under this Additional Coverage:

(a) Begins 72 hours after the time ofdirect physical loss or physicaldamage caused by or resultingfrom a Covered Cause of Loss atthe premises of the dependentproperty; and

(b) Ends on the date when the propertyat the premises of the dependentproperty should be repaired, rebuiltor replaced with reasonable speedand similar quality.

(6) The Business Income coverageperiod, as stated in Paragraph (5),does not include any increased periodrequired due to the enforcement of anyordinance or law that:

(a) Regulates the construction, use orrepair, or requires the tearingdown of any property; or

(b) Requires any insured or others totest for, monitor, clean up, remove,contain, treat, detoxify, or neutralize,or in any way respond to, or assessthe effects "pollutants."

(7) The definition of Business Incomecontained in the Business IncomeAdditional Coverage also applies tothis Business Income From DependentProperties Additional Coverage.

t. Tenant Glass

This Additional Coverage applies only topremises where you are a tenant and areresponsible in the lease for such damage.

We will cover loss to glass, which is in yourcare, custody or control and for which thelease holds you responsible. The glassmust be part of a building described in theDeclarations or at a location that would beincluded in Coverage Extension b. NewlyAcquired or Constructed Property.

The most that we will pay in any oneoccurrence for each location under thisAdditional Coverage is $25,000.

u. Leasehold Improvements

If your lease is cancelled in accordance witha valid lease provision as the direct result of aCovered Cause of Loss to property at thelocation in which you are a tenant, and youcannot legally remove “Tenant Improvementsand Betterments”, we will extend BusinessPersonal Property coverage to apply to theunamortized value of “Tenants Improvementand Betterment” that remain and that youwere forced to abandon.

The most we will pay in any oneoccurrence for loss under this AdditionalCoverage is $25,000.

v. Lease Assessment

Your Business Personal Property is extendedto apply to your share of any assessmentcharged to all tenants by the building owneras a result of direct physical damage causedby or resulting from a Covered Cause of Lossto building property you occupy as agreed toin your written lease agreement.

We will pay no more than $2,500 in any oneoccurrence for this Additional Coverage.


Form SS 00 07 07 05 Page 13 of 25

6. Coverage Extensions

Except as otherwise provided, the followingExtensions apply to property located in or onthe building at the "scheduled premises" or inthe open (or in a vehicle) within 1,000 feet ofthe "scheduled premises". All CoverageExtensions are subject to the terms, conditionsand exclusions of this policy, except asotherwise provided.

In addition to the Limits of Insurance, you mayextend the insurance provided by this policy asfollows:

a. Accounts Receivable

(1) You may extend the insurance thatapplies to your Business PersonalProperty, to apply to your accountsreceivable.

We will pay for:(a) All amounts due from your

customers that you are unable tocollect;

(b) Interest charges on any loanrequired to offset amounts you areunable to collect pending ourpayment of these amounts;

(c) Collection expenses in excess ofyour normal collection expensesthat are made necessary by thephysical loss or physical damage;and

(d) Other reasonable expenses thatyou incur to reestablish yourrecords of accounts receivable;

that result from direct physical loss of orphysical damage to your records ofaccounts receivable.

(2) Paragraph A.3., Covered Causes ofLoss, and Section B., Exclusions, donot apply to this Additional Coverageexcept for:(a) Paragraph B.1.b., Governmental

Action;

(b) Paragraph B.1.c., Nuclear Hazard;and

(c) Paragraph B.1.e., War and MilitaryAction.


(a) Dishonest acts by you, anyoneelse with an interest in the recordsof accounts receivable, or your ortheir employees or authorized

representatives, or anyoneentrusted with the records ofaccounts receivable, whether ornot acting alone or in collusion withother persons or occurring duringthe hours of employment.

This exclusion does not apply to acarrier for hire.

(b) Alteration, falsification, concealmentor destruction of records of accountsreceivable done to conceal thewrongful giving, taking or withholdingof "money," "securities," or otherproperty.

This exclusion applies only to theextent of the wrongful giving,taking or withholding.

(c) Bookkeeping, accounting or billingerrors or omissions.

(d) Electrical or magnetic injury,disturbance or erasure of electronicrecordings.

But we will pay for direct physicalloss or physical damage causedby Lightning.

(e) Voluntary parting with any propertyby you or anyone entrusted withthe property if induced to do so byany fraudulent scheme, trick,device or false pretense.

(f) Unauthorized instructions totransfer property to any person orto any place.

(4) We will not pay for direct physical lossor physical damage that requires anyaudit of records or any inventorycomputation to prove its factualexistence.

(5) The most we will pay in any oneoccurrence for direct physical loss ofor physical damage to your accountsreceivable at each “scheduledpremises” is $25,000.

(6) The most we will pay in any oneoccurrence for direct physical loss ofor physical damage to accountsreceivables away from the “scheduledpremises”, including while in transit, is$25,000.

b. Arson and “Theft” Reward

(1) In the event that a covered fire losswas the result of an act of arson, wewill reimburse you for rewards you payfor information leading to convictionsfor that act of arson.


Page 14 of 25 Form SS 00 07 07 05

(2) In the event of a covered “theft” loss,we will reimburse you for rewards youpay for information leading toconvictions for the “theft” loss.

The most we will pay to reimburse you inany one occurrence for arson or “theft”rewards is $10,000.

This is additional insurance. Thedeductible does not apply to thesereimbursements.

c. Data and Software

We will pay up to $10,000 in any oneoccurrence to cover your costs toresearch, replace or restore "data" or"software" which exists or existed onelectronic or magnetic "media" that is lostor damaged as a result of direct physicalloss or physical damage to "computerequipment" at the "scheduled premises".

d. Garages, Storage Buildings and OtherAppurtenant Structures

(1) You may extend the insurance thatapplies to Building to apply to garages,storage buildings and otherappurtenant structures, except outdoorfixtures, at the "scheduled premises".

The most we will pay in any oneoccurrence for direct physical loss orphysical damage under this Extensionis $50,000 at each "scheduledpremises".

(2) You may extend the insurance thatapplies to Business Personal Propertyin garages, storage buildings and otherappurtenant structures at the"scheduled premises".

The most we will pay in any oneoccurrence for direct physical loss orphysical damage under this Extensionis $5,000 at each "scheduledpremises".

e. Newly Acquired or Constructed Property

(1) You may extend the insurance thatapplies to Building to apply to:

(a) Your new buildings while being builton the "scheduled premises"; and

(b) Buildings you acquire at locationsother than the "scheduledpremises", intended for:

(i) Similar use as the Buildingdescribed in the Declarations; or

(ii) Use as a warehouse.

The most we will pay in any oneoccurrence for loss or damage underthis Extension is 25% of the Limit ofInsurance for Building shown in theDeclarations, but not more than$500,000 at each premises.

(2) You may extend the insurance thatapplies to Business Personal Propertyto apply to:

(a) Property at any premises youacquire or construct;

(b) Business Personal Property,including such property that younewly acquire, located at yournewly constructed building, or

(c) Business Personal Property thatyou newly acquire, located at the"scheduled premises".

This extension does not apply to:

(a) Personal Property that youtemporarily acquire in the courseof installing or performing work onsuch property;

(b) Personal property of others thatyou temporarily acquire in thecourse of your wholesaling activity.

(c) Merchandise held for sale, exceptas provided under Paragraph C.6.Business Personal Property Limit– Seasonal Increase.

The most we will pay in any oneoccurrence for direct physical loss orphysical damage under this Extensionis $250,000 at each premises.

(3) You may extend the insurance thatapplies to Business Income and ExtraExpense to apply to newly acquired orconstructed locations.The most we will pay in any oneoccurrence under this Extension is$50,000.

(4) If Covered Property is moved to a newpremises endorsed onto this policy, froma "scheduled premises" being endorsedoff this policy, the Limit of Insuranceapplicable to that vacated premises willapply proportionately to both premises asthe property is moved. This coverageapplies to up to 180 days after the movebegins or upon completion of the move,whichever is sooner. This coveragedoes not apply to Business PersonalProperty while in transit.


Form SS 00 07 07 05 Page 15 of 25

(5) Insurance under this Extension foreach newly acquired or constructedproperty will end when any of thefollowing first occurs:

(a) This policy expires;(b) 180 days after you acquire or

begin to construct the property, or(c) You report values to us.

We will charge you additional premiumfor values reported from the dayconstruction begins or you acquire theproperty.

f. Outdoor Property

You may extend the insurance provided bythis policy to apply to your outdoor:

(1) Fences, signs (other than signsattached to buildings), trees, shrubsand plants caused by or resulting fromany of the following causes of loss:

(a) Fire;(b) Lightning;(c) Explosion;(d) Riot or Civil Commotion; and(e) Aircraft.The most we will pay in any oneoccurrence for direct physical loss orphysical damage, including debrisremoval expense, under this Extensionis $10,000 but not more than $1,000for any one tree, shrub or plant.

(2) Radio and television antennas(including satellite dishes) caused byor resulting from any of the followingcauses of loss:(a) Fire;(b) Lightning;(c) Windstorm;(d) Ice, Snow, Sleet or Hail;(e) Explosion;(f) Riot or Civil Commotion; and(g) Aircraft.The most we will pay in any oneoccurrence for direct physical loss orphysical damage, including debrisremoval expense, under this Extensionis $2,000.

g. Personal EffectsYou may extend the insurance that appliesto Business Personal Property to apply topersonal effects owned by you, yourofficers, your partners, “managers”,“members”, or your employees.

The most we will pay in any oneoccurrence for physical loss or physicaldamage under this Extension is $10,000 ateach "scheduled premises".

h. Property Off-Premises

(1) You may extend the insurance thatapplies to Building to apply to suchproperty that is temporarily at a locationyou do not own, lease or operate. ThisExtension applies only if physical lossor physical damage is caused by orresulting from a Covered Cause ofLoss. This Extension does not apply toproperty in course of transit.The most we will pay in any oneoccurrence under this coverageextension is $5,000.

(2) You may extend the insurance thatapplies to Business Personal Propertyto apply to such property, other thanAccounts Receivable, "money" and"securities" while:(a) In the course of transit and more

than 1,000 feet from the "scheduledpremises". Property must be in oron, but not permanently attached toor installed in, a motor vehicle youown, lease or operate while betweenpoints in the coverage territory; or

(b) Temporarily at a premises you donot own, lease or operate.

(c) At a premises owned, leased,operated or used by you and theBusiness Personal Property is avending machine.

(d) In or on, but not permanentlyattached to or installed in, motorvehicles operated by youremployees in the course of yourbusiness operations.

(e) On temporary public display, orwhile being used at fairs,exhibitions, expositions, or tradeshows or while in transit to andfrom these temporary sites.

The most we will pay in any oneoccurrence under this Extension is$2,500.

i. Valuable Papers and Records - Cost ofResearch

You may extend the insurance that appliesto Business Personal Property to apply toyour costs to research, replace or restorethe lost information on lost or damaged‘’valuable papers and records’’, for whichduplicates do not exist.


Page 16 of 25 Form SS 00 07 07 05

The most we will pay in any oneoccurrence under this Extension is$25,000 at each "scheduled premises". For"valuable papers and records" not at the"scheduled premises", including while intransit, the most we will pay in any oneoccurrence is $25,000.

B. EXCLUSIONS

1. We will not pay for loss or damage causeddirectly or indirectly by any of the following.Such loss or damage is excluded regardless ofany other cause or event that contributesconcurrently or in any sequence to the loss.

a. Earth Movement

(1) Earthquake, meaning a shaking ortrembling of the earth’s crust, causedby underground tectonic forcesresulting in breaking, shifting, rising,settling, sinking or lateral movement;

(2) Landslide, including any earth sinking,rising or shifting related to such event;

(3) Mine subsidence, meaning subsidenceof a man-made mine, whether or notmining activity has ceased;

(4) Earth sinking (other than sinkholecollapse), rising or shifting including soilconditions which cause settling, crackingor other disarrangement of foundationsor other parts of realty. Soil conditionsinclude contraction, expansion, freezing,thawing, erosion, improperly compactedsoil, and the action of water under theground surface;

But if Earth Movement, as described inParagraphs (1) through (4) above, resultsin fire or explosion, we will pay for thephysical loss or physical damage causedby that fire or explosion.

(5) Volcanic eruption, meaning theeruption, explosion or effusion of avolcano. But if physical loss orphysical damage by fire or volcanicaction results, we will pay for thatresulting physical damage.

Volcanic action means direct physicalloss or physical damage resulting fromthe eruption of a volcano when thephysical loss or physical damage iscaused by:

(a) Airborne volcanic blast or airborneshock waves;

(b) Ash, dust, or particulate matter; or

(c) Lava flow.

(d) All volcanic eruptions that occurwithin any 168-hour period willconstitute a single occurrence.

Volcanic action does not include the costto remove ash, dust, or particulatematter. That does not cause directphysical loss or physical damage toCovered Property.

b. Governmental Action

Seizure or destruction of property by orderof governmental authority.

But we will pay for acts of destruction orderedby governmental authority and taken at thetime of a fire to prevent its spread, if the firewould be covered under this policy.

c. Nuclear Hazard

Nuclear reaction or radiation, orradioactive contamination howevercaused.

But if physical loss or physical damage byfire results, we will pay for that resultingphysical loss or physical damage.

d. Power Failure

The failure of power or other utility servicesupplied to the "scheduled premises",however caused, if the failure occurs awayfrom the "scheduled premises". Failureincludes lack of sufficient capacity andreduction in supply necessary to maintainnormal operations.

But if physical loss or physical damage bya Covered Cause of Loss results, we willpay for that resulting physical loss orphysical damage.

e. War and Military Action

(1) War, including undeclared or civil war;

(2) Warlike action by a military force,including action in hindering ordefending against an actual orexpected attack, by any government,sovereign or other authority usingmilitary personnel or other agents; or

(3) Insurrection, rebellion, revolution,usurped power, or action taken bygovernmental authority in hindering ordefending against any of these.

f. Water

(1) Flood, including the accumulation ofsurface water, waves, tides, tidalwaves, overflow of streams or anyother bodies of water, or their spray, allwhether driven by wind or not;


Form SS 00 07 07 05 Page 17 of 25

(2) Mudslide or mud flow;

(3) Water that backs up from a sewer ordrain; or

(4) Water under the ground surface pressingon, or flowing or seeping through:

(a) Foundations, walls, floors or pavedsurfaces;

(b) Basements, whether paved or not;or

(c) Doors, windows or other openings.

But if loss or damage by fire, explosionor sprinkler leakage results, we willpay for that resulting physical loss orphysical damage.

(5) Water damage caused by or resultingfrom earthquake or volcanic eruption:

(a) Earthquake means a shaking ortrembling of the earth’s crust, causedby underground tectonic forcesresulting in breaking, shifting, rising,settling, sinking or lateral movementor other movement;

(b) Volcanic eruption means theeruption, explosion or effusion of avolcano.

g. Neglect

Neglect of an insured to use all reasonablemeans to save and preserve property fromfurther damage at and after the time ofloss.

2. We will not pay for physical loss or physicaldamage caused by or resulting from:

a. Consequential Losses: Delay, loss of useor loss of market.

b Smoke, Vapor, Gas: Smoke, vapor or gasfrom agricultural smudging or industrialoperations.

c. Miscellaneous Types of Loss:

(1) Wear and tear;

(2) Rust, corrosion, fungus, decay,deterioration, hidden or latent defect orany quality in property that causes it todamage or destroy itself;

(3) Smog;

(4) Settling, cracking, shrinking orexpansion;

(5) Nesting or infestation, or discharge orrelease of waste products orsecretions, by insects, birds, rodents,mold, spore or other animals;

(6) The following causes of loss topersonal property:(a) Dampness or dryness of

atmosphere;

(b) Changes in or extremes oftemperature; or

(c) Marring or scratching.

But if physical loss or physical damage bythe "specified causes of loss", buildingglass breakage or Equipment BreakdownAccident results, we will pay for thatresulting physical loss or physical damage.

d. Frozen Plumbing: Water, other liquids,powder or molten material that leaks orflows from plumbing, heating, airconditioning or other equipment (exceptfire protective systems) caused by orresulting from freezing, unless:

(1) You do your best to maintain heat inthe building or structure; or

(2) You drain the equipment and shut offthe supply if the heat is not maintained.

e. Dishonesty: Dishonest or criminal act byyou, any of your partners, "members",officers, "managers", employees, directors,trustees, authorized representatives oranyone to whom you entrust the propertyfor any purpose:

(1) Acting alone or in collusion with others;or

(2) Whether or not occurring during thehours of employment.

This exclusion does not apply to acts ofdestruction by your employees; but theft byemployees is not covered.

f. False Pretense: Voluntary parting withany property by you or anyone else towhom you have entrusted the property ifinduced to do so by any fraudulentscheme, trick, device or false pretense.

g. Exposed Property: Rain, snow, ice orsleet to personal property in the open,except as provided in the CoverageExtension for Outdoor Property.

h. Collapse: Collapse, except as provided inthe Additional Coverage for Collapse. But ifloss or damage by a Covered Cause of Lossresults at the "scheduled premises", we willpay for that resulting loss or damage.

i. Pollution: We will not pay for loss ordamage caused by or resulting from thedischarge, dispersal, seepage, migration,release or escape of "pollutants and


Page 18 of 25 Form SS 00 07 07 05

contaminants" unless the discharge,dispersal, seepage, migration, release orescape is itself caused by any of the"specified causes of loss." But if physicalloss or physical damage by the "specifiedcauses of loss" results, we will pay for theresulting physical loss or physical damagecaused by the "specified cause of loss."

3. We will not pay for loss or damage caused by orresulting from any of the following. But if physicalloss or physical damage by a Covered Cause ofLoss results, we will pay for that resulting physicalloss or physical damage.

a. Weather conditions: Weather conditions.This exclusion only applies if weatherconditions contribute in any way with acause or event excluded in paragraph 1.above to produce the physical loss orphysical damage.

b. Acts or Decisions: Acts or decisions,including the failure to act or decide, of anyperson, group, organization or governmentalbody.

c. Negligent Work: Faulty, inadequate ordefective:

(1) Planning, zoning, development,surveying, siting;

(2) Design, specifications, workmanship,repair, construction, renovation,remodeling, grading, compaction;

(3) Materials used in repair, construction,renovation or remodeling; or

(4) Maintenance of part or all of any propertyon or off the "scheduled premises".

4. Business Income and Extra ExpenseExclusions. We will not pay for:

a. Any Extra Expense, or increase of BusinessIncome loss, caused by or resulting from:

(1) Delay in rebuilding, repairing or replacingthe property or resuming "operations",due to interference at the location of therebuilding, repair or replacement bystrikers or other persons; or

(2) Suspension, lapse or cancellation of anylicense, lease or contract. But if thesuspension, lapse or cancellation isdirectly caused by the suspension of"operations’, we will cover such lossthat affects your Business Incomeduring the "period of restoration".

b. Any other consequential loss.

5. Equipment Breakdown Exclusion

We will not pay for physical loss or physicaldamage caused by or resulting from any of thefollowing tests:

(a) A hydrostatic, pneumatic or gas pressuretest of any boiler or pressure vessel; or

(b) An insulation breakdown test of any type ofelectrical equipment.

C. LIMITS OF INSURANCE

1. The most we will pay for physical loss orphysical damage in any one occurrence is theapplicable Limit of Insurance shown in theDeclarations.

2. The most we will pay for physical loss of orphysical damage to outdoor signs attached tobuildings is $5,000 per sign in any oneoccurrence.

3. The limits applicable to:

a. Coverage Extensions; and

b. The following Additional Coverages:

(1) Accounts Receivable,

(2) Fire Department Service Charges,

(3) Fire Extinguisher Recharge, and

(4) "Pollutants and Contaminants” CleanUp and Removal

are in addition to the Limits of Insurance.

4. Payments under the following AdditionalCoverages will not increase the applicableLimit of Insurance:

a. Preservation of Property; or

b. Debris Removal; but if:

(1) The sum of direct physical loss orphysical damage and Debris Removalexpense exceeds the Limit ofInsurance; or

(2) The Debris Removal expense exceedsthe amount payable under the 25%limitation in the Debris RemovalAdditional Coverage.

We will pay up to an additional $10,000 foreach location stated in the Declarations inany one occurrence under the DebrisRemoval Additional Coverage.

5. Building Limit - Automatic Increasea. The Limit of Insurance for Buildings will

automatically increase annually by 8%.b. The amount of increase will be:

(1) The Limit of Insurance for Buildings thatapplied on the most recent of the policy


Form SS 00 07 07 05 Page 19 of 25

inception date, policy anniversary date,or the date of any other policy changeamending the Buildings limit, times

(2) The percentage of annual increaseshown above, expressed as a decimal(.08); times

(3) The number of days since the beginningof the current policy year or the effectivedate of the most recent policy changeamending the Limit of Insurance forBuildings, divided by 365.

Example: The applicable Limit of Insurancefor Buildings is $100,000. The annualpercentage increase is 8%. The number ofdays since the beginning of the policyperiod (or last policy change) is 146.

The amount of increase is:

$100,000 X .08 X 146 divided by 365 =$3,200

6. Business Personal Property Limit -Seasonal Increase

a. The Limit of Insurance for BusinessPersonal Property will automaticallyincrease by 25% to provide for seasonalvariations.

b. This increase will apply only if all Limits ofInsurance shown in the Declarations forBusiness Personal Property at the“scheduled premises” is at least 100% ofyour average monthly values during thelesser of:

(1) The 12 months immediately precedingthe date the physical loss or physicaldamage occurs; or

(2) The period of time you have been inbusiness as of the date the physicalloss or physical damage occurs.

D. DEDUCTIBLES

1. We will not pay for physical loss or physicaldamage in any one occurrence until theamount of physical loss or physical damageexceeds the Deductible shown in theDeclarations. We will then pay the amount ofloss or damage in excess of the Deductible upto the applicable Limit of Insurance.

2. Except as otherwise listed, the deductibleapplicable to Additional Coverages andCoverage Extensions is the Special PropertyCoverage Form is $250.

3. A $250 deductible applies to the followingGlass Coverages, unless Glass Coverage isprovided under a separate coverage form:

a. Building Glass

b. Glass Expense

c. Tenant Glass

4. Unless a separate deductible is shown in theDeclarations, the deductible applicable to thefollowing Additional Coverages or CoverageExtensions is $250, whether the coverage isprovided under this coverage form, providedon a separate coverage form or the coverageis provided in a form that includes a package ofcoverages, such as a Stretch endorsement:

a. Accounts Receivable;

b. Fine Arts

c. Outdoor Signs; and

d. "Valuable Papers and Records";

5. Unless a separate deductible is shown in theDeclarations, the deductible applicable to thefollowing Additional Coverages or CoverageExtensions is $100, whether the coverage isprovided under this coverage form, providedon a separate coverage form or the coverageis provided in a form that includes a package ofcoverages, such as a Stretch endorsement:

a. Employee Dishonesy; and

b. Temperature Change.

6. No deductible applies to the following CoverageExtensions and Additional Coverages:

a. Fire Extinguisher Recharge;b. Preservation of Property;c. Fire Department Service Charge;d. Business Income, Extra Expense, Civil

Authority and Extended Business Income;e. Arson Reward; andf. Lock and Key Replacement

6. The Deductible applicable to the followingAdditional Coverages is the policy deductibleor the deductible shown in the Declarations forthe following coverage:

a. Equipment Breakdown;

b. Ordinance or Law Coverage; and

c. Leasehold Improvements.

7. Each deductible applicable to this policy shall beapplied separately but only to the coveragespecified, and the total deductible for all losses inany one occurrence shall be the highestdeductible amount that applies to the occurrence.

E. PROPERTY LOSS CONDITIONS

1. AbandonmentThere can be no abandonment of any propertyto us.


Page 20 of 25 Form SS 00 07 07 05

2. AppraisalIf we and you disagree on the amount of loss,either may make written demand for anappraisal of the loss. In that event, each partywill select a competent and impartial appraiser.The two appraisers will select an umpire. Ifthey cannot agree, either may request thatselection be made by a judge of a court havingjurisdiction. The appraisers will stateseparately the amount of loss.

If they fail to agree, they will submit theirdifferences to the umpire. A decision agreed toby any two will be binding. Each party will:

a. Pay its chosen appraiser; and

b. Bear the other expenses of the appraisaland umpire equally.

If there is an appraisal, we will still retain ourright to deny the claim.

3. Duties In The Event Of Loss Or Damage

You must see that the following are done in theevent of loss of or damage to Covered Property:

a. Notify the police if a law may have beenbroken.

b. Give us prompt notice of the physical lossor physical damage. Include a descriptionof the property involved.

c. As soon as possible, give us description ofhow, when and where the physical loss orphysical damage occurred.

d. Take all reseasonable steps to protect theCovered Property from further damage bya Covered Cause of Loss. If feasible, setthe damaged property aside in the bestpossible order for examination. Also, keepa record of your expenses for emergencyand temporary repairs, for consideration inthe settlement of the claim.

This will not increase the Limits of Insurance.

e. At our request, give us completeinventories of the damaged andundamaged property. Include quantities,costs, values and amount of loss claimed.

f. Permit us to inspect the property and recordsproving the loss or damage. Also permit us totake samples of damaged property forinspection, testing and analysis.

g. If requested, permit us to question youunder oath at such times as may bereasonably required about any matterrelating to this insurance or your claim,including your books and records. In suchevent, your answers must be signed.

h. Send us a signed, sworn statement of losscontaining the information we request toinvestigate the claim. You must do thiswithin 60 days after our request. We willsupply you with the necessary forms.

i. Cooperate with us in the investigation orsettlement of the claim.

j. Resume part or all of your "operations" asquickly as possible.

4. Legal Action Against Us

No one may bring a legal action against usunder this insurance unless:

a. There has been full compliance with all ofthe terms of this insurance; and

b. The action is brought within 2 years afterthe date on which the direct physical lossor physical damage occurred.

5. Loss Payment

In the event of physical loss or physicaldamage covered by this policy:

a. At our option we will either:

(1) Pay the value of physically lost orphysically damaged property, asdescribed in paragraph d. below;

(2) Pay the cost of repairing or replacingthe physically lost or physicallydamaged property, plus any reductionin value of repaired items;

(3) Take all or any part of the property atan agreed or appraised value; or

(4) Repair, rebuild or replace the propertywith other property of like kind andquality.

b. We will give notice of our intentions within30 days after we receive the swornstatement of loss.

c. We will not pay you more than yourfinancial interest in the Covered Property.

d. We will determine the value of CoveredProperty as follows:

(1) At replacement cost (without deductionfor depreciation), except as provided in(2) through (7) below.(a) You may make a claim for physical

loss or physical damage coveredby this insurance on an actualcash value basis instead of on areplacement cost basis. In theevent you elect to have physicalloss or physical damage settled onan actual cash value basis, youmay still make a claim on a


Form SS 00 07 07 05 Page 21 of 25

replacement cost basis if younotify us of your intent to do sowithin 180 days after the physicalloss or physical damage.

(b) We will not pay on a replacementcost basis for any physical loss orphysical damage:

(i) Until the physically lost orphysically damaged propertyis actually repaired orreplaced; and

(ii) Unless the repairs orreplacement are made assoon as reasonably possibleafter the physical loss orphysical damage.

However, if the cost to repair orreplace the damaged property is$2,500 or less, we will settle theloss according to the provisions ofParagraphs d.(1)(a) and d.(1)(b)above whether or not the actualrepair or replacement is complete.

(c) We will not pay more for physicalloss or physical damage on areplacement cost basis than theleast of:

(i) The cost to replace, on thesame premises, the physicallylost or physically damagedproperty with other property ofcomparable material and

quality and which is used forthe same purpose; or

(ii) The amount you actuallyspend that is necessary torepair or replace the physicallylost or physically damagedproperty.

(2) If the Actual Cash Value - Buildingsoption applies, as shown in theDeclarations, paragraph (1) abovedoes not apply to Buildings. Instead,we will determine the value ofBuildings at actual cash value.

(3) The following property at actual cashvalue:

(a) Manuscripts;(b) Works of art, antiques or rare

articles, including etchings, pictures,statuary, objects of marble, bronzes,porcelains and bric-a-brac.

(c) Household contents, exceptpersonal property in apartments orrooms furnished by you as landlord.

(4) Glass at the cost of replacement withsafety glazing material if required bylaw.

(5) “Tenants' Improvements andBetterments” at:

(a) Replacement cost if you makerepairs promptly.

(b) A proportion of your original cost ifyou do not make repairs promptly.We will determine the proportionatevalue as follows:

(i) Multiply the original cost by thenumber of days from thephysical loss or physicaldamage to the expiration ofthe lease; and

(ii) Divide the amount determinedin (i) above by the number ofdays from the installation ofimprovements to the expirationof the lease.

If your lease contains a renewaloption, the expiration of the renewaloption period will replace theexpiration of the lease in thisprocedure.

(c) Nothing, if others pay for repairs orreplacement.

(6) "Valuable Papers and Records", at thecost of:

(a) Blank materials for reproducing therecords; and

(b) Labor to transcribe or copy therecords.

(7) "Money" and "Securities":

(a) "Money" at its face value; and

(b) "Securities" at their value at theclose of business on the day theloss is discovered.

(8) The value of United States GovernmentInternal Revenue taxes and customduties and refundable state and localtaxes paid or fully determined on thefollowing property held for sale will not beconsidered in determining the value ofCovered Property:

(a) Distilled spirits;

(b) Wines;


Page 22 of 25 Form SS 00 07 07 05

(c) Rectified products; or

(d) Beer.

(9) Applicable to Accounts Receivable:

(a) If you can not accurately establishthe amount of the accountsreceivable outstanding as of thetime of physical loss or physicaldamage the following method willbe used:

(i) Determine the total of theaverage monthly value ofaccounts receivable for 12months immediately precedingthe month in which the directphysical loss or physicaldamage occurred; and

(ii) Adjust the total determined inparagraph (i) above for anynormal fluctuations in thevalue of accounts receivablefor the month in which thedirect physical loss or physicaldamage occurred for anydemonstrated variance fromthe average of that month.

(b) The following will be deductedfrom the total value of accountsreceivable, however that value isestablished:

(i) The value of the accounts forwhich there is no physical lossor physical damage;

(ii) The value of the accounts thatyou are able to re-establish orcollect;

(ii) A value to allow for probablebad debts that you arenormally unable to collect; and

(iv) All unearned interest andservices charged.

e. Our payment for physical loss of orphysical damage to personal property ofothers will only be for the account of theowners of the property. We may adjustlosses with the owners of physically lost orphysically damaged property if other thanyou. If we pay the owners, such paymentwill satisfy your claims against us for theowners' property.

We will not pay the owners more than theirfinancial interest in the Covered Property.

f. We may elect to defend you against suitsarising from claims of owners of property.We will do this at our expense.

g. We will pay for covered physical loss orphysical damage within 30 days after wereceive the sworn statement of loss, if:

(1) You have complied with all of theterms of this policy; and

(2) (a) We have reached agreement withyou on the amount of loss, or

(b) An appraisal award has been made.

h. The following condition applies to any losspayment for Extra Expense:

We will deduct from the total ExtraExpense to be paid:

(1) The salvage value that remains of anyproperty bought for temporary useduring the Period of Restoration, oncebusiness operations are resumed; and

(2) Any Extra Expense that is paid for byother insurance.

6. Recovered Property

If either you or we recover any property afterloss settlement, that party must give the otherprompt notice. At your option, you may retainthe property. But then you must return to us theamount we paid to you for the property. We willpay recovery expenses and the expenses torepair the recovered property, subject to theLimits of Insurance.

7. Resumption of Operations

In the event of physical loss or physicaldamage at the "scheduled premises" you mustresume all or part of your "operations" asquickly as possible.

We will reduce the amount of your:

a. Business Income loss, other than ExtraExpense, to the extent you can resumeyour "operations", in whole or in part, byusing damaged or undamaged property(including merchandise or stock) at the"scheduled premises" or elsewhere.

b. Extra Expense loss to the extent you canreturn "operations" to normal anddiscontinue such Extra Expense.

8. Vacancy

a. Description of Terms

(1) As used in this Vacancy Condition, theterm building and the term vacant havethe meanings set forth in Paragraphs.


Form SS 00 07 07 05 Page 23 of 25

(a) and (b) below:(a) When this policy is issued to a

tenant, and with respect to thattenant’s interest in CoveredProperty, building means the unitor suite rented or leased to thetenant. Such building is vacantwhen it does not contain enoughbusiness personal property toconduct customary operations.

(b) When this policy is issued to theowner or general lessee of abuilding, building means the entirebuilding. Such building is vacantunless at least 31% of its totalsquare footage is:

(i) Rented to a lessee or sub-lessee and used by the lesseeor sub-lessee to conduct itscustomary operations; and/or

(ii) Used by the building owner toconduct customary operations.

(2) Buildings under construction or renovationare not considered vacant.

b. Vacancy Provisions

If the building where physical loss orphysical damage occurs has been vacantfor more than 60 consecutive days beforethat physical loss or physical damageoccurs:

(1) We will not pay for any physical loss orphysical damage caused by any of thefollowing even if they are CoveredCauses of Loss:

(a) Vandalism;

(b) Sprinkler leakage, unless you hadprotected the system againstfreezing;

(c) Building glass breakage;

(d) Water damage;

(e) Theft; or

(f) Attempted theft.

(2) With respect to Covered Causes ofLoss other than those listed in b.(1)(a)through b.(1)(f) above, we will reducethe amount we would otherwise pay forthe physical loss or physical damageby 15%.

F. PROPERTY GENERAL CONDITIONS

1. Control of PropertyAny act or neglect of any person other thanyou beyond your direction or control will notaffect this insurance.

The breach of any condition of this CoverageForm at one or more locations will not affectcoverage at any location where, at the time ofphysical loss or physical damage, the breachof condition does not exist.

2. Mortgage Holders

a. The term mortgage holder includes trustee.

b. We will pay for covered physical loss of orphysical damage to buildings or structuresto each mortgage holder shown in theDeclarations in their order of precedence,as interests may appear.

c. The mortgage holder has the right toreceive loss payment even if the mortgageholder has started foreclosure or similaraction on the building or structure.

d. If we deny your claim because of your actsor because you have failed to comply withthe terms of this policy, the mortgageholder will still have the right to receiveloss payment if the mortgage holder:

(1) Pays any premium due under thispolicy at our request if you have failedto do so;

(2) Submits a signed, sworn statement ofloss within 60 days after receiving noticefrom us of your failure to do so; and

(3) Has notified us of any change inownership, occupancy or substantialchange in risk known to the mortgageholder.

All of the terms of this policy will then applydirectly to the mortgage holder.

e. If we pay the mortgage holder for anyphysical loss or physical damage and denypayment to you because of your acts orbecause you have failed to comply with theterms of this policy:

(1) The mortgage holder's rights under themortgage will be transferred to us tothe extent of the amount we pay; and

(2) The mortgage holder's rights to recoverthe full amount of the mortgage holder'sclaim will not be impaired.

At our option, we may pay to the mortgageholder the whole principal on the mortgageplus any accrued interest. In this event,your mortgage and note will be transferredto us and you will pay your remainingmortgage debt to us.


Page 24 of 25 Form SS 00 07 07 05

f. If we cancel this policy, we will give writtennotice to the mortgage holder at least:

(1) 10 days before the effective date ofcancellation if we cancel for your nonpayment of premium; or

(2) 30 days before the effective date ofcancellation if we cancel for any otherreason.

g. If we elect not to renew this policy, we willgive written notice to the mortgage holderat least 10 days before the expiration dateof this policy.

3. No Benefit to Bailee

No person or organization, other than you,having custody of Covered Property will benefitfrom this insurance.

4. Policy Period, Coverage Territory

Under this form:

a. We cover physical loss or physicaldamage commencing:

(1) During the policy period shown in theDeclarations; and

(2) Within the coverage territory or, withrespect to property in transit, while it isbetween points in the coverageterritory.

But we do not cover physical loss orphysical damage that is also covered by apreceding policy.

b. The coverage territory is:

(1) The United States of America (includingits territories and possessions);

(2) Puerto Rico; and

(3) Canada.

5. Additional Conditions

The following conditions apply to paragraphA.5.u., Forgery Additional Coverage:

a. We will treat mechanically reproducedfacsimile signatures the same ashandwritten signatures.

b. You must include with your proof of lossany instrument involved in that loss, or, ifthat is not possible, an affidavit settingforth the amount and cause of loss.

c. The Coverage Territory is revised to coverloss you sustain anywhere in the world.

G. PROPERTY DEFINITIONS

1. "Computer" means a programmable electronicdevice that can store, retrieve and process"data".

2. "Computer Equipment" means "computers","peripheral devices", "media", and manualsthat are purchased to be used in conjunctionwith hardware and "software".

3. "Counterfeit" means an imitation of an actualvalid original which is intended to deceive andto be taken as the original.

4. "Data" means information or facts stored in a"computer’s" memory, on "software" or on"media".

5. "Finished Stock" means stock you havemanufactured.

"Finished Stock" does not include stock youhave manufactured that is held for sale on thepremises of any retail outlet insured under thispolicy.

6. "Manager" means a person serving in adirectorial capacity for a limited liabilitycompany.

7. "Media" means the material used solely withthe "computer" or "peripheral device" uponwhich "software" or "data" is stored, such astapes, CD-ROMs or disks.

8. "Member" means an owner of a limited liabilitycompany represented by its membershipinterest, who also may serve as a "manager".

9. “Messenger” means you, any any of yourpartners or any employee while having careand custody of the property outside yourpremises.

10. "Money" means:

a. Currency, coins and bank notes whether ornot in current use; and

b. Travelers checks, registered checks andmoney orders held for sale to the public.

11. "Operations" means your business activitiesoccurring at the "scheduled premises" andtenantability of the "scheduled premises".

12. "Period of Restoration" means the period oftime that:

a. Begins with the date of direct physical lossor physical damage caused by or resultingfrom a Covered Cause of Loss at the"scheduled premises", and

b. Ends on the date when:

(1) The property at the "scheduledpremises" should be repaired, rebuiltor replaced with reasonable speed andsimilar quality;

(2) The date when your business isresumed at a new, permanent location.


Form SS 00 07 07 05 Page 25 of 25

"Period of Restoration" does not includeany increased period required due toenforcement of any law that:

a. Regulates the construction, use or repair,or required the tearing down of anyproperty; or

b. Regulates the prevention, control, repair,clean up or restoration of environmentaldamage.

The expiration date of this policy will not cutshort the "period of restoration".

13. "Peripheral Device" means any physical unitused to operate the "computer’ that cannot beused for purposes other than as part of thecomputer’s system, such as tape or diskdrives, printers, or modems.

14. "Perishable Stock" means personal property:

a. Maintained under controlled conditions forits preservation; and

b. Susceptible to physical loss or physicaldamage if the controlled conditionschange.

15. "Pollutants and Contaminants" means anysolid, liquid, gaseous or thermal irritant orcontaminant, including smoke, vapors, soot,fumes, acids, alkalis, chemicals and waste, orany other material which causes or threatensto cause physical loss, physical damage,impurity to property, unwholesomeness,undesirability, loss of marketability, loss of useof property, or which threatens human healthor welfare. Waste includes materials to berecycled, reconditioned or reclaimed.

16. "Scheduled Premises" means any premiseslisted by location address in the ScheduledPremises section of the Declarations.

17. "Securities" means negotiable andnonnegotiable instruments or contractsrepresenting either "money" or other propertyand includes:

a. Tokens, tickets except Lottery Tickets,revenue and other non-postage stampswhether or not in current use; and

b. Evidences of debt issued in connectionwith credit or charge cards, which are notof your own issue;

but does not include "money."

18. "Software" means instructions or programs thatare stored on "media" and which instruct thehardware as to how to process "data".

19. "Specified Cause of Loss" means the following:

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

a. Sinkhole collapse means the suddensinking or collapse of land intounderground empty spaces created by theaction of water on limestone or dolomite. Itdoes not include the cost of fillingsinkholes.

b. Falling objects does not include loss of ordamage to:

(1) Personal property in the open; or

(2) The interior of a building or structure,or property inside a building orstructure, unless the roof or an outsidewall of the building or structure is firstdamaged by a falling object.

c. Water damage means accidentaldischarge or leakage of water or steam asthe direct result of the breaking or crackingof any part of a system or appliancecontaining water or steam.

20. "Suit" means a civil proceeding and includes:

a. An arbitration proceeding in whichdamages are claimed and to which youmust submit or do submit with our consent;or

b. Any other alternative dispute resolutionproceeding in which damages are claimedand to which you submit with our consent.

21. “Tenant Improvements and Betterments”means fixtures, alterations, installations oradditions made a part of the Building youoccupy but do not own and that you cannotlegally remove; and

a. Which are made at your expense; or

b. That you acquired from the prior tenant atyour expense.

22. “Theft” means the act of stealing.

23. "Valuable papers and records" meansinscribed, printed or written documents,manuscripts or records, including abstracts,books, deeds, drawings, films, maps ormortgages.

But "valuable papers and records" does notmean "money" and "securities", "data" and"software" or the materials on which the "data"and "software" is recorded.


BUSINESS LIABILITY COVERAGE FORM

Form SS 00 08 04 05

QUICK REFERENCEBUSINESS LIABILITY COVERAGE FORMREAD YOUR POLICY CAREFULLY

BUSINESS LIABILITY COVERAGE FORM Beginning on Page

A. COVERAGES 1Business Liability 1Medical Expenses 2Coverage Extension - Supplementary Payments 2

B. EXCLUSIONS 3

C. WHO IS AN INSURED 10

D. LIABILITY AND MEDICAL EXPENSESLIMITS OF INSURANCE 14

E. LIABILITY AND MEDICAL EXPENSES GENERAL CONDITIONS 15

1. Bankruptcy 15

2. Duties In The Event Of Occurrence, Offense, Claim Or Suit 15

3. Financial Responsibility Laws 16

4. Legal Action Against Us 16

5. Separation Of Insureds 16

6. Representations 16

7. Other Insurance 16

8. Transfer Of Rights Of Recovery Against Others To Us 17

F. OPTIONAL ADDITIONAL INSURED COVERAGES 18

Additional Insureds 18

G. LIABILITY AND MEDICAL EXPENSES DEFINITIONS 20


BUSINESS LIABILITY COVERAGE FORMVarious provisions in this policy restrict coverage. Read the entire policy carefully to determine rights, duties and whatis and is not covered.

Throughout this policy the words "you" and "your" refer to the Named Insured shown in the Declarations. The words"we", "us" and "our" refer to the stock insurance company member of The Hartford providing this insurance.

The word "insured" means any person or organization qualifying as such under Section C. - Who Is An Insured.

Other words and phrases that appear in quotation marks have special meaning. Refer to Section G. - Liability AndMedical Expenses Definitions.

A. COVERAGES1. BUSINESS LIABILITY COVERAGE (BODILY

INJURY, PROPERTY DAMAGE, PERSONALAND ADVERTISING INJURY)

Insuring Agreement

a. We will pay those sums that the insuredbecomes legally obligated to pay asdamages because of "bodily injury","property damage" or "personal andadvertising injury" to which this insuranceapplies. We will have the right and duty todefend the insured against any "suit"seeking those damages. However, we willhave no duty to defend the insured againstany "suit" seeking damages for "bodilyinjury", "property damage" or "personal andadvertising injury" to which this insurancedoes not apply.

We may, at our discretion, investigate any"occurrence" or offense and settle any claimor "suit" that may result. But:

(1) The amount we will pay for damages islimited as described in Section D. -Liability And Medical Expenses LimitsOf Insurance; and

(2) Our right and duty to defend ends whenwe have used up the applicable limit ofinsurance in the payment of judgments,settlements or medical expenses to whichthis insurance applies.

No other obligation or liability to pay sums orperform acts or services is covered unlessexplicitly provided for under CoverageExtension - Supplementary Payments.

b. This insurance applies:

(1) To "bodily injury" and "propertydamage" only if:

(a) The "bodily injury" or "propertydamage" is caused by an"occurrence" that takes place in the"coverage territory";

(b) The "bodily injury" or "propertydamage" occurs during the policyperiod; and

(c) Prior to the policy period, no insuredlisted under Paragraph 1. of SectionC. – Who Is An Insured and no"employee" authorized by you to giveor receive notice of an "occurrence"or claim, knew that the "bodily injury"or "property damage" had occurred,in whole or in part. If such a listedinsured or authorized "employee"knew, prior to the policy period, thatthe "bodily injury" or "propertydamage" occurred, then anycontinuation, change or resumptionof such "bodily injury" or "propertydamage" during or after the policyperiod will be deemed to have beenknown prior to the policy period.

(2) To "personal and advertising injury"caused by an offense arising out of yourbusiness, but only if the offense wascommitted in the "coverage territory"during the policy period.

c. "Bodily injury" or "property damage" will bedeemed to have been known to haveoccurred at the earliest time when anyinsured listed under Paragraph 1. of SectionC. – Who Is An Insured or any "employee"authorized by you to give or receive noticeof an "occurrence" or claim:

(1) Reports all, or any part, of the "bodilyinjury" or "property damage" to us orany other insurer;


Page 2 of 24 Form SS 00 08 04 05

(2) Receives a written or verbal demand orclaim for damages because of the "bodilyinjury" or "property damage"; or

(3) Becomes aware by any other means that"bodily injury" or "property damage" hasoccurred or has begun to occur.

d. Damages because of "bodily injury" includedamages claimed by any person ororganization for care, loss of services ordeath resulting at any time from the "bodilyinjury".

e. Incidental Medical Malpractice

(1) "Bodily injury" arising out of therendering of or failure to renderprofessional health care services as aphysician, dentist, nurse, emergencymedical technician or paramedic shallbe deemed to be caused by an"occurrence", but only if:

(a) The physician, dentist, nurse,emergency medical technician orparamedic is employed by you toprovide such services; and

(b) You are not engaged in thebusiness or occupation of providingsuch services.

(2) For the purpose of determining thelimits of insurance for incidental medicalmalpractice, any act or omissiontogether with all related acts oromissions in the furnishing of theseservices to any one person will beconsidered one "occurrence".

2. MEDICAL EXPENSES

Insuring Agreement

a. We will pay medical expenses as describedbelow for "bodily injury" caused by anaccident:

(1) On premises you own or rent;

(2) On ways next to premises you own orrent; or

(3) Because of your operations;

provided that:

(1) The accident takes place in the"coverage territory" and during thepolicy period;

(2) The expenses are incurred and reportedto us within three years of the date ofthe accident; and

(3) The injured person submits toexamination, at our expense, byphysicians of our choice as often as wereasonably require.

b. We will make these payments regardless offault. These payments will not exceed theapplicable limit of insurance. We will payreasonable expenses for:

(1) First aid administered at the time of anaccident;

(2) Necessary medical, surgical, x-ray anddental services, including prostheticdevices; and

(3) Necessary ambulance, hospital,professional nursing and funeralservices.

3. COVERAGE EXTENSION -SUPPLEMENTARY PAYMENTS

a. We will pay, with respect to any claim or"suit" we investigate or settle, or any "suit"against an insured we defend:

(1) All expenses we incur.

(2) Up to $1,000 for the cost of bail bondsrequired because of accidents or trafficlaw violations arising out of the use ofany vehicle to which Business LiabilityCoverage for "bodily injury" applies. Wedo not have to furnish these bonds.

(3) The cost of appeal bonds or bonds torelease attachments, but only for bondamounts within the applicable limit ofinsurance. We do not have to furnishthese bonds.

(4) All reasonable expenses incurred by theinsured at our request to assist us in theinvestigation or defense of the claim or"suit", including actual loss of earningsup to $500 a day because of time offfrom work.

(5) All costs taxed against the insured inthe "suit".

(6) Prejudgment interest awarded againstthe insured on that part of the judgmentwe pay. If we make an offer to pay theapplicable limit of insurance, we will notpay any prejudgment interest based onthat period of time after the offer.

(7) All interest on the full amount of anyjudgment that accrues after entry of thejudgment and before we have paid,offered to pay, or deposited in court thepart of the judgment that is within theapplicable limit of insurance.

Any amounts paid under (1) through (7)above will not reduce the limits of insurance.


Form SS 00 08 04 05 Page 3 of 24

b. If we defend an insured against a "suit"and an indemnitee of the insured is alsonamed as a party to the "suit", we willdefend that indemnitee if all of thefollowing conditions are met:

(1) The "suit" against the indemniteeseeks damages for which the insuredhas assumed the liability of theindemnitee in a contract or agreementthat is an "insured contract";

(2) This insurance applies to such liabilityassumed by the insured;

(3) The obligation to defend, or the cost ofthe defense of, that indemnitee, hasalso been assumed by the insured inthe same "insured contract";

(4) The allegations in the "suit" and theinformation we know about the"occurrence" are such that no conflictappears to exist between the interestsof the insured and the interest of theindemnitee;

(5) The indemnitee and the insured askus to conduct and control the defenseof that indemnitee against such "suit"and agree that we can assign thesame counsel to defend the insuredand the indemnitee; and

(6) The indemnitee:

(a) Agrees in writing to:

(i) Cooperate with us in theinvestigation, settlement ordefense of the "suit";

(ii) Immediately send us copies ofany demands, notices,summonses or legal papersreceived in connection withthe "suit";

(iii) Notify any other insurer whosecoverage is available to theindemnitee; and

(iv) Cooperate with us withrespect to coordinating otherapplicable insurance availableto the indemnitee; and

(b) Provides us with writtenauthorization to:

(i) Obtain records and otherinformation related to the"suit"; and

(ii) Conduct and control thedefense of the indemnitee insuch "suit".

So long as the above conditions are met,attorneys' fees incurred by us in thedefense of that indemnitee, necessarylitigation expenses incurred by us andnecessary litigation expenses incurredby the indemnitee at our request will bepaid as Supplementary Payments.

Notwithstanding the provisions ofParagraph 1.b.(b) of Section B. –Exclusions, such payments will not bedeemed to be damages for "bodilyinjury" and "property damage" and willnot reduce the Limits of Insurance.

Our obligation to defend an insured'sindemnitee and to pay for attorneys' feesand necessary litigation expenses asSupplementary Payments ends when:

(1) We have used up the applicable limitof insurance in the payment ofjudgments or settlements; or

(2) The conditions set forth above, or theterms of the agreement described inParagraph (6) above, are no longer met.

B. EXCLUSIONS1. Applicable To Business Liability Coverage

This insurance does not apply to:

a. Expected Or Intended Injury

(1) "Bodily injury" or "property damage"expected or intended from thestandpoint of the insured. Thisexclusion does not apply to "bodilyinjury" or "property damage" resultingfrom the use of reasonable force toprotect persons or property; or

(2) "Personal and advertising injury" arisingout of an offense committed by, at thedirection of or with the consent oracquiescence of the insured with theexpectation of inflicting "personal andadvertising injury".

b. Contractual Liability

(1) "Bodily injury" or "property damage"; or

(2) "Personal and advertising injury"

for which the insured is obligated to paydamages by reason of the assumption ofliability in a contract or agreement.

This exclusion does not apply to liabilityfor damages because of:

(a) "Bodily injury", "property damage" or"personal and advertising injury" thatthe insured would have in theabsence of the contract oragreement; or


Page 4 of 24 Form SS 00 08 04 05

(b) "Bodily injury" or "property damage"assumed in a contract or agreementthat is an "insured contract",provided the "bodily injury" or"property damage" occurssubsequent to the execution of thecontract or agreement. Solely forthe purpose of liability assumed inan "insured contract", reasonableattorneys' fees and necessarylitigation expenses incurred by or fora party other than an insured aredeemed to be damages because of"bodily injury" or "property damage"provided:

(i) Liability to such party for, or forthe cost of, that party’s defensehas also been assumed in thesame "insured contract", and

(ii) Such attorneys' fees andlitigation expenses are fordefense of that party against acivil or alternative disputeresolution proceeding in whichdamages to which thisinsurance applies are alleged.

c. Liquor Liability

"Bodily injury" or "property damage" forwhich any insured may be held liable byreason of:

(1) Causing or contributing to theintoxication of any person;

(2) The furnishing of alcoholic beverages toa person under the legal drinking age orunder the influence of alcohol; or

(3) Any statute, ordinance or regulationrelating to the sale, gift, distribution oruse of alcoholic beverages.

This exclusion applies only if you are in thebusiness of manufacturing, distributing,selling, serving or furnishing alcoholicbeverages.

d. Workers' Compensation And SimilarLawsAny obligation of the insured under aworkers' compensation, disability benefitsor unemployment compensation law orany similar law.

e. Employer’s Liability"Bodily injury" to:

(1) An "employee" of the insured arisingout of and in the course of:

(a) Employment by the insured; or

(b) Performing duties related to theconduct of the insured’s business, or

(2) The spouse, child, parent, brother orsister of that "employee" as aconsequence of (1) above.

This exclusion applies:

(1) Whether the insured may be liable asan employer or in any other capacity;and

(2) To any obligation to share damageswith or repay someone else who mustpay damages because of the injury.

This exclusion does not apply to liabilityassumed by the insured under an "insuredcontract".

f. Pollution

(1) "Bodily injury", "property damage" or"personal and advertising injury"arising out of the actual, alleged orthreatened discharge, dispersal,seepage, migration, release or escapeof "pollutants":

(a) At or from any premises, site orlocation which is or was at anytime owned or occupied by, orrented or loaned to any insured.However, this subparagraph doesnot apply to:

(i) "Bodily injury" if sustained withina building and caused bysmoke, fumes, vapor or sootproduced by or originating fromequipment that is used to heat,cool or dehumidify the building,or equipment that is used toheat water for personal use, bythe building's occupants or theirguests;

(ii) "Bodily injury" or "propertydamage" for which you may beheld liable, if you are acontractor and the owner orlessee of such premises, site orlocation has been added to yourpolicy as an additional insuredwith respect to your ongoingoperations performed for thatadditional insured at thatpremises, site or location andsuch premises, site or locationis not and never was owned oroccupied by, or rented orloaned to, any insured, otherthan that additional insured; or


Form SS 00 08 04 05 Page 5 of 24

(iii) "Bodily injury" or "propertydamage" arising out of heat,smoke or fumes from a"hostile fire";

(b) At or from any premises, site orlocation which is or was at anytime used by or for any insured orothers for the handling, storage,disposal, processing or treatmentof waste;

(c) Which are or were at any timetransported, handled, stored,treated, disposed of, or processedas waste by or for:

(i) Any insured; or

(ii) Any person or organization forwhom you may be legallyresponsible;

(d) At or from any premises, site orlocation on which any insured orany contractors or subcontractorsworking directly or indirectly onany insured's behalf areperforming operations if the"pollutants" are brought on or tothe premises, site or location inconnection with such operationsby such insured, contractor orsubcontractor. However, thissubparagraph does not apply to:

(i) "Bodily injury" or "propertydamage" arising out of theescape of fuels, lubricants orother operating fluids which areneeded to perform the normalelectrical, hydraulic ormechanical functionsnecessary for the operation of"mobile equipment" or its parts,if such fuels, lubricants or otheroperating fluids escape from avehicle part designed to hold,store or receive them. Thisexception does not apply if the"bodily injury" or "propertydamage" arises out of theintentional discharge, dispersalor release of the fuels,lubricants or other operatingfluids, or if such fuels,lubricants or other operatingfluids are brought on or to thepremises, site or location withthe intent that they bedischarged, dispersed or

released as part of theoperations being performedby such insured, contractor orsubcontractor;

(ii) "Bodily injury" or "propertydamage" sustained within abuilding and caused by therelease of gases, fumes orvapors from materials broughtinto that building in connectionwith operations being performedby you or on your behalf by acontractor or subcontractor; or

(iii) "Bodily injury" or "propertydamage" arising out of heat,smoke or fumes from a"hostile fire"; or

(e) At or from any premises, site orlocation on which any insured or anycontractors or subcontractorsworking directly or indirectly on anyinsured’s behalf are performingoperations if the operations are totest for, monitor, clean up, remove,contain, treat, detoxify or neutralize,or in any way respond to, or assessthe effects of, "pollutants".

(2) Any loss, cost or expense arising outof any:

(a) Request, demand, order or statutoryor regulatory requirement that anyinsured or others test for, monitor,clean up, remove, contain, treat,detoxify or neutralize, or in any wayrespond to, or assess the effects of,"pollutants"; or

(b) Claim or suit by or on behalf of agovernmental authority fordamages because of testing for,monitoring, cleaning up, removing,containing, treating, detoxifying orneutralizing, or in any wayresponding to, or assessing theeffects of, "pollutants".

However, this paragraph does notapply to liability for damages becauseof "property damage" that the insuredwould have in the absence of suchrequest, demand, order or statutory orregulatory requirement, or such claimor "suit" by or on behalf of agovernmental authority.


Page 6 of 24 Form SS 00 08 04 05

g. Aircraft, Auto Or Watercraft

"Bodily injury" or "property damage" arisingout of the ownership, maintenance, use orentrustment to others of any aircraft, "auto"or watercraft owned or operated by or rentedor loaned to any insured. Use includesoperation and "loading or unloading".

This exclusion applies even if the claimsagainst any insured allege negligence orother wrongdoing in the supervision, hiring,employment, training or monitoring of othersby that insured, if the "occurrence" whichcaused the "bodily injury" or "propertydamage" involved the ownership,maintenance, use or entrustment to others ofany aircraft, "auto" or watercraft that isowned or operated by or rented or loaned toany insured.

This exclusion does not apply to:

(1) A watercraft while ashore on premisesyou own or rent;

(2) A watercraft you do not own that is:

(a) Less than 51 feet long; and

(b) Not being used to carry personsfor a charge;

(3) Parking an "auto" on, or on the waysnext to, premises you own or rent,provided the "auto" is not owned by orrented or loaned to you or the insured;

(4) Liability assumed under any "insuredcontract" for the ownership,maintenance or use of aircraft orwatercraft;

(5) "Bodily injury" or "property damage"arising out of the operation of any ofthe equipment listed in Paragraph f.(2)or f.(3) of the definition of "mobileequipment"; or

(6) An aircraft that is not owned by anyinsured and is hired, chartered or loanedwith a paid crew. However, thisexception does not apply if the insuredhas any other insurance for such "bodilyinjury" or "property damage", whetherthe other insurance is primary, excess,contingent or on any other basis.

h. Mobile Equipment

"Bodily injury" or "property damage"arising out of:

(1) The transportation of "mobile equipment"by an "auto" owned or operated by orrented or loaned to any insured; or

(2) The use of "mobile equipment" in, orwhile in practice or preparation for, aprearranged racing, speed ordemolition contest or in any stuntingactivity.

i. War

"Bodily injury", "property damage" or"personal and advertising injury", howevercaused, arising, directly or indirectly, out of:

(1) War, including undeclared or civil war;

(2) Warlike action by a military force,including action in hindering ordefending against an actual orexpected attack, by any government,sovereign or other authority usingmilitary personnel or other agents; or

(3) Insurrection, rebellion, revolution,usurped power, or action taken bygovernmental authority in hindering ordefending against any of these.

j. Professional Services"Bodily injury", "property damage" or"personal and advertising injury" arisingout of the rendering of or failure to renderany professional service. This includesbut is not limited to:

(1) Legal, accounting or advertisingservices;

(2) Preparing, approving, or failing toprepare or approve maps, shopdrawings, opinions, reports, surveys,field orders, change orders, designs ordrawings and specifications;

(3) Supervisory, inspection, architecturalor engineering activities;

(4) Medical, surgical, dental, x-ray ornursing services treatment, advice orinstruction;

(5) Any health or therapeutic servicetreatment, advice or instruction;

(6) Any service, treatment, advice orinstruction for the purpose ofappearance or skin enhancement, hairremoval or replacement or personalgrooming;

(7) Optical or hearing aid servicesincluding the prescribing, preparation,fitting, demonstration or distribution ofophthalmic lenses and similarproducts or hearing aid devices;


Form SS 00 08 04 05 Page 7 of 24

(8) Optometry or optometric servicesincluding but not limited to examinationof the eyes and the prescribing,preparation, fitting,demonstration ordistribution of ophthalmic lenses andsimilar products;

(9) Any:

(a) Body piercing (not including earpiercing);

(b) Tattooing, including but not limitedto the insertion of pigments into orunder the skin; and

(c) Similar services;

(10) Services in the practice of pharmacy;and

(11) Computer consulting, design orprogramming services, including website design.

Paragraphs (4) and (5) of this exclusion donot apply to the Incidental MedicalMalpractice coverage afforded underParagraph 1.e. in Section A. - Coverages.

k. Damage To Property

"Property damage" to:

(1) Property you own, rent or occupy,including any costs or expensesincurred by you, or any other person,organization or entity, for repair,replacement, enhancement,restoration or maintenance of suchproperty for any reason, includingprevention of injury to a person ordamage to another's property;

(2) Premises you sell, give away orabandon, if the "property damage" arisesout of any part of those premises;

(3) Property loaned to you;

(4) Personal property in the care, custodyor control of the insured;

(5) That particular part of real property onwhich you or any contractors orsubcontractors working directly orindirectly on your behalf are performingoperations, if the "property damage"arises out of those operations; or

(6) That particular part of any propertythat must be restored, repaired orreplaced because "your work" wasincorrectly performed on it.

Paragraphs (1), (3) and (4) of thisexclusion do not apply to "propertydamage" (other than damage by fire) topremises, including the contents of suchpremises, rented to you for a period of 7 orfewer consecutive days. A separate Limitof Insurance applies to Damage ToPremises Rented To You as described inSection D. - Limits Of Insurance.

Paragraph (2) of this exclusion does notapply if the premises are "your work" andwere never occupied, rented or held forrental by you.

Paragraphs (3) and (4) of this exclusion donot apply to the use of elevators.

Paragraphs (3), (4), (5) and (6) of thisexclusion do not apply to liability assumedunder a sidetrack agreement.

Paragraphs (3) and (4) of this exclusion donot apply to "property damage" toborrowed equipment while not being usedto perform operations at a job site.

Paragraph (6) of this exclusion does notapply to "property damage" included in the"products-completed operations hazard".

l. Damage To Your Product

"Property damage" to "your product"arising out of it or any part of it.

m. Damage To Your Work

"Property damage" to "your work" arisingout of it or any part of it and included in the"products-completed operations hazard".

This exclusion does not apply if thedamaged work or the work out of whichthe damage arises was performed on yourbehalf by a subcontractor.

n. Damage To Impaired Property OrProperty Not Physically Injured

"Property damage" to "impaired property"or property that has not been physicallyinjured, arising out of:

(1) A defect, deficiency, inadequacy ordangerous condition in "your product"or "your work"; or

(2) A delay or failure by you or anyoneacting on your behalf to perform acontract or agreement in accordancewith its terms.

This exclusion does not apply to the lossof use of other property arising out ofsudden and accidental physical injury to"your product" or "your work" after it hasbeen put to its intended use.


Page 8 of 24 Form SS 00 08 04 05

o. Recall Of Products, Work Or ImpairedProperty

Damages claimed for any loss, cost orexpense incurred by you or others for theloss of use, withdrawal, recall, inspection,repair, replacement, adjustment, removalor disposal of:

(1) "Your product";(2) "Your work"; or(3) "Impaired property";if such product, work or property iswithdrawn or recalled from the market orfrom use by any person or organizationbecause of a known or suspected defect,deficiency, inadequacy or dangerouscondition in it.

p. Personal And Advertising Injury

"Personal and advertising injury":

(1) Arising out of oral, written or electronicpublication of material, if done by or atthe direction of the insured withknowledge of its falsity;

(2) Arising out of oral, written or electronicpublication of material whose firstpublication took place before thebeginning of the policy period;

(3) Arising out of a criminal act committedby or at the direction of the insured;

(4) Arising out of any breach of contract,except an implied contract to useanother’s "advertising idea" in your"advertisement";

(5) Arising out of the failure of goods,products or services to conform withany statement of quality orperformance made in your"advertisement";

(6) Arising out of the wrong description ofthe price of goods, products or services;

(7) Arising out of any violation of anyintellectual property rights such ascopyright, patent, trademark, tradename, trade secret, service mark orother designation of origin orauthenticity.

However, this exclusion does notapply to infringement, in your"advertisement", of

(a) Copyright;

(b) Slogan, unless the slogan is alsoa trademark, trade name, servicemark or other designation of originor authenticity; or

(c) Title of any literary or artistic work;

(8) Arising out of an offense committed byan insured whose business is:(a) Advertising, broadcasting,

publishing or telecasting;

(b) Designing or determining contentof web sites for others; or

(c) An Internet search, access,content or service provider.

However, this exclusion does notapply to Paragraphs a., b. and c.under the definition of "personal andadvertising injury" in Section G. –Liability And Medical ExpensesDefinitions.

For the purposes of this exclusion,placing an "advertisement" for orlinking to others on your web site, byitself, is not considered the businessof advertising, broadcasting,publishing or telecasting;

(9) Arising out of an electronic chat roomor bulletin board the insured hosts,owns, or over which the insuredexercises control;

(10) Arising out of the unauthorized use ofanother's name or product in your e-mailaddress, domain name or metatags, orany other similar tactics to misleadanother's potential customers;

(11) Arising out of the violation of aperson's right of privacy created byany state or federal act.

However, this exclusion does notapply to liability for damages that theinsured would have in the absence ofsuch state or federal act;

(12) Arising out of:

(a) An "advertisement" for others onyour web site;

(b) Placing a link to a web site ofothers on your web site;

(c) Content from a web site of othersdisplayed within a frame or borderon your web site. Content includesinformation, code, sounds, text,graphics or images; or

(d) Computer code, software orprogramming used to enable:

(i) Your web site; or

(ii) The presentation or functionalityof an "advertisement" or othercontent on your web site;


Form SS 00 08 04 05 Page 9 of 24

(13) Arising out of a violation of any anti-trust law;

(14) Arising out of the fluctuation in price orvalue of any stocks, bonds or othersecurities; or

(15) Arising out of discrimination orhumiliation committed by or at thedirection of any "executive officer",director, stockholder, partner ormember of the insured.

q. Electronic Data

Damages arising out of the loss of, loss ofuse of, damage to, corruption of, inabilityto access, or inability to manipulate"electronic data".

r. Employment-Related Practices

"Bodily injury" or "personal and advertisinginjury" to:

(1) A person arising out of any:

(a) Refusal to employ that person;

(b) Termination of that person'semployment; or

(c) Employment-related practices,policies, acts or omissions, such ascoercion, demotion, evaluation,reassignment, discipline,defamation, harassment, humiliationor discrimination directed at thatperson; or

(2) The spouse, child, parent, brother orsister of that person as aconsequence of "bodily injury" or"personal and advertising injury" to theperson at whom any of theemployment-related practicesdescribed in Paragraphs (a), (b), or (c)above is directed.


(1) Whether the insured may be liable asan employer or in any other capacity;and

(2) To any obligation to share damageswith or repay someone else who mustpay damages because of the injury.

s. Asbestos

(1) "Bodily injury", "property damage" or"personal and advertising injury"arising out of the "asbestos hazard".

(2) Any damages, judgments, settlements,loss, costs or expenses that:

(a) May be awarded or incurred byreason of any claim or suitalleging actual or threatened injuryor damage of any nature or kind topersons or property which wouldnot have occurred in whole or inpart but for the "asbestos hazard";

(b) Arise out of any request, demand,order or statutory or regulatoryrequirement that any insured orothers test for, monitor, clean up,remove, encapsulate, contain,treat, detoxify or neutralize or inany way respond to or assess theeffects of an "asbestos hazard"; or

(c) Arise out of any claim or suit fordamages because of testing for,monitoring, cleaning up, removing,encapsulating, containing, treating,detoxifying or neutralizing or in anyway responding to or assessing theeffects of an "asbestos hazard".

t. Violation Of Statutes That Govern E-Mails, Fax, Phone Calls Or OtherMethods Of Sending Material OrInformation

"Bodily injury", "property damage", or"personal and advertising injury" arisingdirectly or indirectly out of any action oromission that violates or is alleged toviolate:

(1) The Telephone Consumer ProtectionAct (TCPA), including any amendmentof or addition to such law;

(2) The CAN-SPAM Act of 2003, includingany amendment of or addition to suchlaw; or

(3) Any statute, ordinance or regulation,other than the TCPA or CAN-SPAM Actof 2003, that prohibits or limits thesending, transmitting, communicating ordistribution of material or information.

Damage To Premises Rented To You –Exception For Damage By Fire, Lightningor Explosion

Exclusions c. through h. and k. through o. donot apply to damage by fire, lightning orexplosion to premises rented to you ortemporarily occupied by you with permission ofthe owner. A separate Limit of Insuranceapplies to this coverage as described inSection D. - Liability And Medical ExpensesLimits Of Insurance.


Page 10 of 24 Form SS 00 08 04 05

2. Applicable To Medical Expenses Coverage

We will not pay expenses for "bodily injury":

a. Any InsuredTo any insured, except "volunteer workers".

b. Hired Person

To a person hired to do work for or on behalfof any insured or a tenant of any insured.

c. Injury On Normally Occupied Premises

To a person injured on that part ofpremises you own or rent that the personnormally occupies.

d. Workers' Compensation And SimilarLaws

To a person, whether or not an"employee" of any insured, if benefits forthe "bodily injury" are payable or must beprovided under a workers' compensationor disability benefits law or a similar law.

e. Athletics Activities

To a person injured while practicing,instructing or participating in any physicalexercises or games, sports or athleticcontests.

f. Products-Completed Operations Hazard

Included with the "products-completedoperations hazard".

g. Business Liability Exclusions

Excluded under Business Liability Coverage.

C. WHO IS AN INSURED1. If you are designated in the Declarations as:

a. An individual, you and your spouse areinsureds, but only with respect to theconduct of a business of which you are thesole owner.

b. A partnership or joint venture, you are aninsured. Your members, your partners, andtheir spouses are also insureds, but only withrespect to the conduct of your business.

c. A limited liability company, you are aninsured. Your members are also insureds,but only with respect to the conduct of yourbusiness. Your managers are insureds, butonly with respect to their duties as yourmanagers.

d. An organization other than a partnership,joint venture or limited liability company, youare an insured. Your "executive officers" anddirectors are insureds, but only with respectto their duties as your officers or directors.Your stockholders are also insureds, but onlywith respect to their liability as stockholders.

e. A trust, you are an insured. Your trusteesare also insureds, but only with respect totheir duties as trustees.

2. Each of the following is also an insured:

a. Employees And Volunteer Workers

Your "volunteer workers" only whileperforming duties related to the conduct ofyour business, or your "employees", otherthan either your "executive officers" (if youare an organization other than apartnership, joint venture or limited liabilitycompany) or your managers (if you are alimited liability company), but only for actswithin the scope of their employment byyou or while performing duties related tothe conduct of your business.

However, none of these "employees" or"volunteer workers" are insureds for:

(1) "Bodily injury" or "personal andadvertising injury":

(a) To you, to your partners ormembers (if you are a partnershipor joint venture), to your members(if you are a limited liabilitycompany), or to a co-"employee"while in the course of his or heremployment or performing dutiesrelated to the conduct of yourbusiness, or to your other"volunteer workers" whileperforming duties related to theconduct of your business;

(b) To the spouse, child, parent,brother or sister of that co-"employee" or that "volunteerworker" as a consequence ofParagraph (1)(a) above;

(c) For which there is any obligationto share damages with or repaysomeone else who must paydamages because of the injurydescribed in Paragraphs (1)(a) or(b) above; or

(d) Arising out of his or her providingor failing to provide professionalhealth care services.

If you are not in the business ofproviding professional health careservices, Paragraph (d) does not applyto any nurse, emergency medicaltechnician or paramedic employed byyou to provide such services.

(2) "Property damage" to property:

(a) Owned, occupied or used by,


Form SS 00 08 04 05 Page 11 of 24

(b) Rented to, in the care, custody orcontrol of, or over which physicalcontrol is being exercised for anypurpose by you, any of your"employees", "volunteer workers",any partner or member (if you area partnership or joint venture), orany member (if you are a limitedliability company).

b. Real Estate Manager

Any person (other than your "employee" or"volunteer worker"), or any organizationwhile acting as your real estate manager.

c. Temporary Custodians Of YourProperty

Any person or organization having propertemporary custody of your property if youdie, but only:

(1) With respect to liability arising out of themaintenance or use of that property; and

(2) Until your legal representative hasbeen appointed.

d. Legal Representative If You Die

Your legal representative if you die, butonly with respect to duties as such. Thatrepresentative will have all your rights andduties under this insurance.

e. Unnamed Subsidiary

Any subsidiary and subsidiary thereof, ofyours which is a legally incorporated entityof which you own a financial interest ofmore than 50% of the voting stock on theeffective date of this Coverage Part.

The insurance afforded herein for anysubsidiary not shown in the Declarationsas a named insured does not apply toinjury or damage with respect to which aninsured under this insurance is also aninsured under another policy or would bean insured under such policy but for itstermination or upon the exhaustion of itslimits of insurance.

3. Newly Acquired Or Formed Organization

Any organization you newly acquire or form,other than a partnership, joint venture orlimited liability company, and over which youmaintain financial interest of more than 50% ofthe voting stock, will qualify as a NamedInsured if there is no other similar insuranceavailable to that organization. However:

a. Coverage under this provision is affordedonly until the 180th day after you acquireor form the organization or the end of thepolicy period, whichever is earlier; and

b. Coverage under this provision does notapply to:

(1) "Bodily injury" or "property damage"that occurred; or

(2) "Personal and advertising injury"arising out of an offense committed

before you acquired or formed theorganization.

4. Operator Of Mobile Equipment

With respect to "mobile equipment" registered inyour name under any motor vehicle registrationlaw, any person is an insured while driving suchequipment along a public highway with yourpermission. Any other person or organizationresponsible for the conduct of such person isalso an insured, but only with respect to liabilityarising out of the operation of the equipment, andonly if no other insurance of any kind is availableto that person or organization for this liability.However, no person or organization is an insuredwith respect to:

a. "Bodily injury" to a co-"employee" of theperson driving the equipment; or

b. "Property damage" to property owned by,rented to, in the charge of or occupied byyou or the employer of any person who isan insured under this provision.

5. Operator of Nonowned Watercraft

With respect to watercraft you do not own thatis less than 51 feet long and is not being usedto carry persons for a charge, any person is aninsured while operating such watercraft withyour permission. Any other person ororganization responsible for the conduct ofsuch person is also an insured, but only withrespect to liability arising out of the operationof the watercraft, and only if no otherinsurance of any kind is available to thatperson or organization for this liability.

However, no person or organization is aninsured with respect to:

a. "Bodily injury" to a co-"employee" of theperson operating the watercraft; or

b. "Property damage" to property owned by,rented to, in the charge of or occupied byyou or the employer of any person who isan insured under this provision.

6. Additional Insureds When Required ByWritten Contract, Written Agreement OrPermit

The person(s) or organization(s) identified inParagraphs a. through f. below are additionalinsureds when you have agreed, in a written


Page 12 of 24 Form SS 00 08 04 05

contract, written agreement or because of apermit issued by a state or politicalsubdivision, that such person or organizationbe added as an additional insured on yourpolicy, provided the injury or damage occurssubsequent to the execution of the contract oragreement, or the issuance of the permit.

A person or organization is an additionalinsured under this provision only for thatperiod of time required by the contract,agreement or permit.

However, no such person or organization is anadditional insured under this provision if suchperson or organization is included as anadditional insured by an endorsement issuedby us and made a part of this Coverage Part,including all persons or organizations addedas additional insureds under the specificadditional insured coverage grants in SectionF. – Optional Additional Insured Coverages.

a. Vendors

Any person(s) or organization(s) (referred tobelow as vendor), but only with respect to"bodily injury" or "property damage" arisingout of "your products" which are distributedor sold in the regular course of the vendor'sbusiness and only if this Coverage Partprovides coverage for "bodily injury" or"property damage" included within the"products-completed operations hazard".

(1) The insurance afforded to the vendoris subject to the following additionalexclusions:


(a) "Bodily injury" or "propertydamage" for which the vendor isobligated to pay damages byreason of the assumption ofliability in a contract or agreement.This exclusion does not apply toliability for damages that thevendor would have in the absenceof the contract or agreement;

(b) Any express warrantyunauthorized by you;

(c) Any physical or chemical changein the product made intentionallyby the vendor;

(d) Repackaging, except whenunpacked solely for the purpose ofinspection, demonstration, testing,or the substitution of parts underinstructions from the manufacturer,and then repackaged in theoriginal container;

(e) Any failure to make suchinspections, adjustments, tests orservicing as the vendor hasagreed to make or normallyundertakes to make in the usualcourse of business, in connectionwith the distribution or sale of theproducts;

(f) Demonstration, installation,servicing or repair operations,except such operations performedat the vendor's premises inconnection with the sale of theproduct;

(g) Products which, after distributionor sale by you, have been labeledor relabeled or used as acontainer, part or ingredient of anyother thing or substance by or forthe vendor; or

(h) "Bodily injury" or "propertydamage" arising out of the solenegligence of the vendor for itsown acts or omissions or those ofits employees or anyone elseacting on its behalf. However, thisexclusion does not apply to:

(i) The exceptions contained inSubparagraphs (d) or (f); or

(ii) Such inspections, adjustments,tests or servicing as the vendorhas agreed to make or normallyundertakes to make in the usualcourse of business, inconnection with the distributionor sale of the products.

(2) This insurance does not apply to anyinsured person or organization fromwhom you have acquired such products,or any ingredient, part or container,entering into, accompanying orcontaining such products.

b. Lessors Of Equipment

(1) Any person or organization fromwhom you lease equipment; but onlywith respect to their liability for "bodilyinjury", "property damage" or"personal and advertising injury"caused, in whole or in part, by yourmaintenance, operation or use ofequipment leased to you by suchperson or organization.


Form SS 00 08 04 05 Page 13 of 24

(2) With respect to the insurance affordedto these additional insureds, thisinsurance does not apply to any"occurrence" which takes place afteryou cease to lease that equipment.

c. Lessors Of Land Or Premises

(1) Any person or organization fromwhom you lease land or premises, butonly with respect to liability arising outof the ownership, maintenance or useof that part of the land or premisesleased to you.

(2) With respect to the insurance affordedto these additional insureds, thisinsurance does not apply to:

(a) Any "occurrence" which takesplace after you cease to lease thatland or be a tenant in thatpremises; or

(b) Structural alterations, newconstruction or demolitionoperations performed by or onbehalf of such person ororganization.

d. Architects, Engineers Or Surveyors

(1) Any architect, engineer, or surveyor, butonly with respect to liability for "bodilyinjury", "property damage" or "personaland advertising injury" caused, in wholeor in part, by your acts or omissions orthe acts or omissions of those acting onyour behalf:

(a) In connection with your premises;or

(b) In the performance of yourongoing operations performed byyou or on your behalf.

(2) With respect to the insurance affordedto these additional insureds, thefollowing additional exclusion applies:

This insurance does not apply to"bodily injury", "property damage" or"personal and advertising injury"arising out of the rendering of or thefailure to render any professionalservices by or for you, including:

(a) The preparing, approving, orfailure to prepare or approve,maps, shop drawings, opinions,reports, surveys, field orders,change orders, designs ordrawings and specifications; or

(b) Supervisory, inspection,architectural or engineeringactivities.

e. Permits Issued By State Or PoliticalSubdivisions

(1) Any state or political subdivision, butonly with respect to operationsperformed by you or on your behalf forwhich the state or political subdivisionhas issued a permit.


(a) "Bodily injury", "property damage"or "personal and advertisinginjury" arising out of operationsperformed for the state ormunicipality; or

(b) "Bodily injury" or "property damage"included within the "products-completed operations hazard".

f. Any Other Party

(1) Any other person or organization whois not an insured under Paragraphs a.through e. above, but only withrespect to liability for "bodily injury","property damage" or "personal andadvertising injury" caused, in whole orin part, by your acts or omissions orthe acts or omissions of those actingon your behalf:

(a) In the performance of yourongoing operations;

(b) In connection with your premisesowned by or rented to you; or

(c) In connection with "your work" andincluded within the "products-completed operations hazard", butonly if

(i) The written contract or writtenagreement requires you toprovide such coverage tosuch additional insured; and

(ii) This Coverage Part providescoverage for "bodily injury" or"property damage" includedwithin the "products-completed operations hazard".


"Bodily injury", "property damage" or"personal and advertising injury"arising out of the rendering of, or thefailure to render, any professionalarchitectural, engineering or surveyingservices, including:


Page 14 of 24 Form SS 00 08 04 05

(a) The preparing, approving, orfailure to prepare or approve,maps, shop drawings, opinions,reports, surveys, field orders,change orders, designs ordrawings and specifications; or

(b) Supervisory, inspection,architectural or engineeringactivities.

The limits of insurance that apply to additionalinsureds are described in Section D. – LimitsOf Insurance.

How this insurance applies when otherinsurance is available to an additional insuredis described in the Other Insurance Conditionin Section E. – Liability And Medical ExpensesGeneral Conditions.

No person or organization is an insured withrespect to the conduct of any current or pastpartnership, joint venture or limited liabilitycompany that is not shown as a Named Insured inthe Declarations.

D. LIABILITY AND MEDICAL EXPENSESLIMITS OF INSURANCE1. The Most We Will Pay

The Limits of Insurance shown in theDeclarations and the rules below fix the mostwe will pay regardless of the number of:

a. Insureds;b. Claims made or "suits" brought; orc. Persons or organizations making claims or

bringing "suits".

2. Aggregate Limits

The most we will pay for:

a. Damages because of "bodily injury" and"property damage" included in the"products-completed operations hazard" isthe Products-Completed OperationsAggregate Limit shown in theDeclarations.

b. Damages because of all other "bodilyinjury", "property damage" or "personaland advertising injury", including medicalexpenses, is the General Aggregate Limitshown in the Declarations.

This General Aggregate Limit appliesseparately to each of your "locations"owned by or rented to you.

"Location" means premises involving thesame or connecting lots, or premiseswhose connection is interrupted only by astreet, roadway or right-of-way of arailroad.

This General Aggregate limit does notapply to "property damage" to premiseswhile rented to you or temporarilyoccupied by you with permission of theowner, arising out of fire, lightning orexplosion.

3. Each Occurrence Limit

Subject to 2.a. or 2.b above, whicheverapplies, the most we will pay for the sum of alldamages because of all "bodily injury","property damage" and medical expensesarising out of any one "occurrence" is theLiability and Medical Expenses Limit shown inthe Declarations.

The most we will pay for all medical expensesbecause of "bodily injury" sustained by anyone person is the Medical Expenses Limitshown in the Declarations.

4. Personal And Advertising Injury Limit

Subject to 2.b. above, the most we will pay forthe sum of all damages because of all"personal and advertising injury" sustained byany one person or organization is the Personaland Advertising Injury Limit shown in theDeclarations.

5. Damage To Premises Rented To You Limit

The Damage To Premises Rented To YouLimit is the most we will pay under BusinessLiability Coverage for damages because of"property damage" to any one premises, whilerented to you, or in the case of damage by fire,lightning or explosion, while rented to you ortemporarily occupied by you with permission ofthe owner.

In the case of damage by fire, lightning orexplosion, the Damage to Premises Rented ToYou Limit applies to all damage proximatelycaused by the same event, whether suchdamage results from fire, lightning or explosionor any combination of these.

6. How Limits Apply To Additional Insureds

The most we will pay on behalf of a person ororganization who is an additional insuredunder this Coverage Part is the lesser of:

a. The limits of insurance specified in awritten contract, written agreement orpermit issued by a state or politicalsubdivision; or

b. The Limits of Insurance shown in theDeclarations.

Such amount shall be a part of and not inaddition to the Limits of Insurance shown inthe Declarations and described in this Section.


Form SS 00 08 04 05 Page 15 of 24

If more than one limit of insurance under thispolicy and any endorsements attached theretoapplies to any claim or "suit", the most we will payunder this policy and the endorsements is thesingle highest limit of liability of all coveragesapplicable to such claim or "suit". However, thisparagraph does not apply to the Medical Expenseslimit set forth in Paragraph 3. above.

The Limits of Insurance of this Coverage Part applyseparately to each consecutive annual period and toany remaining period of less than 12 months, startingwith the beginning of the policy period shown in theDeclarations, unless the policy period is extendedafter issuance for an additional period of less than 12months. In that case, the additional period will bedeemed part of the last preceding period for purposesof determining the Limits of Insurance.

E. LIABILITY AND MEDICAL EXPENSESGENERAL CONDITIONS1. Bankruptcy

Bankruptcy or insolvency of the insured or ofthe insured's estate will not relieve us of ourobligations under this Coverage Part.

2. Duties In The Event Of Occurrence,Offense, Claim Or Suit

a. Notice Of Occurrence Or Offense

You or any additional insured must see toit that we are notified as soon aspracticable of an "occurrence" or anoffense which may result in a claim. Tothe extent possible, notice should include:

(1) How, when and where the "occurrence"or offense took place;

(2) The names and addresses of anyinjured persons and witnesses; and

(3) The nature and location of any injuryor damage arising out of the"occurrence" or offense.

b. Notice Of Claim

If a claim is made or "suit" is broughtagainst any insured, you or any additionalinsured must:

(1) Immediately record the specifics of theclaim or "suit" and the date received;and

(2) Notify us as soon as practicable.

You or any additional insured must see toit that we receive a written notice of theclaim or "suit" as soon as practicable.

c. Assistance And Cooperation Of TheInsured

You and any other involved insured must:

(1) Immediately send us copies of anydemands, notices, summonses orlegal papers received in connectionwith the claim or "suit";

(2) Authorize us to obtain records andother information;

(3) Cooperate with us in the investigation,settlement of the claim or defenseagainst the "suit"; and

(4) Assist us, upon our request, in theenforcement of any right against anyperson or organization that may beliable to the insured because of injuryor damage to which this insurancemay also apply.

d. Obligations At The Insured's Own Cost

No insured will, except at that insured's owncost, voluntarily make a payment, assumeany obligation, or incur any expense, otherthan for first aid, without our consent.

e. Additional Insured's Other Insurance

If we cover a claim or "suit" under thisCoverage Part that may also be coveredby other insurance available to anadditional insured, such additional insuredmust submit such claim or "suit" to theother insurer for defense and indemnity.

However, this provision does not apply tothe extent that you have agreed in awritten contract, written agreement orpermit that this insurance is primary andnon-contributory with the additionalinsured's own insurance.

f. Knowledge Of An Occurrence, Offense,Claim Or Suit

Paragraphs a. and b. apply to you or toany additional insured only when such"occurrence", offense, claim or "suit" isknown to:

(1) You or any additional insured that isan individual;

(2) Any partner, if you or an additionalinsured is a partnership;

(3) Any manager, if you or an additionalinsured is a limited liability company;

(4) Any "executive officer" or insurancemanager, if you or an additionalinsured is a corporation;

(5) Any trustee, if you or an additionalinsured is a trust; or

(6) Any elected or appointed official, if youor an additional insured is a politicalsubdivision or public entity.


Page 16 of 24 Form SS 00 08 04 05

This Paragraph f. applies separately toyou and any additional insured.

3. Financial Responsibility Laws

a. When this policy is certified as proof offinancial responsibility for the future underthe provisions of any motor vehiclefinancial responsibility law, the insuranceprovided by the policy for "bodily injury"liability and "property damage" liability willcomply with the provisions of the law tothe extent of the coverage and limits ofinsurance required by that law.

b. With respect to "mobile equipment" towhich this insurance applies, we willprovide any liability, uninsured motorists,underinsured motorists, no-fault or othercoverage required by any motor vehiclelaw. We will provide the required limits forthose coverages.

4. Legal Action Against Us

No person or organization has a right underthis Coverage Form:

a. To join us as a party or otherwise bring usinto a "suit" asking for damages from aninsured; or

b. To sue us on this Coverage Form unlessall of its terms have been fully compliedwith.

A person or organization may sue us to recoveron an agreed settlement or on a final judgmentagainst an insured; but we will not be liable fordamages that are not payable under the terms ofthis insurance or that are in excess of theapplicable limit of insurance. An agreedsettlement means a settlement and release ofliability signed by us, the insured and theclaimant or the claimant's legal representative.

5. Separation Of Insureds

Except with respect to the Limits of Insurance,and any rights or duties specifically assignedin this policy to the first Named Insured, thisinsurance applies:

a. As if each Named Insured were the onlyNamed Insured; and

b. Separately to each insured against whoma claim is made or "suit" is brought.

6. Representations

a. When You Accept This Policy

By accepting this policy, you agree:

(1) The statements in the Declarationsare accurate and complete;

(2) Those statements are based uponrepresentations you made to us; and

(3) We have issued this policy in relianceupon your representations.

b. Unintentional Failure To DiscloseHazards

If unintentionally you should fail to discloseall hazards relating to the conduct of yourbusiness at the inception date of thisCoverage Part, we shall not deny anycoverage under this Coverage Partbecause of such failure.

7. Other Insurance

If other valid and collectible insurance isavailable for a loss we cover under thisCoverage Part, our obligations are limited asfollows:

a. Primary Insurance

This insurance is primary except when b.below applies. If other insurance is alsoprimary, we will share with all that otherinsurance by the method described in c.below.

b. Excess Insurance

This insurance is excess over any of theother insurance, whether primary, excess,contingent or on any other basis:

(1) Your Work

That is Fire, Extended Coverage,Builder's Risk, Installation Risk orsimilar coverage for "your work";

(2) Premises Rented To You

That is fire, lightning or explosioninsurance for premises rented to youor temporarily occupied by you withpermission of the owner;

(3) Tenant Liability

That is insurance purchased by you tocover your liability as a tenant for"property damage" to premises rentedto you or temporarily occupied by youwith permission of the owner;

(4) Aircraft, Auto Or Watercraft

If the loss arises out of the maintenanceor use of aircraft, "autos" or watercraft tothe extent not subject to Exclusion g. ofSection A. – Coverages.

(5) Property Damage To BorrowedEquipment Or Use Of Elevators

If the loss arises out of "propertydamage" to borrowed equipment orthe use of elevators to the extent notsubject to Exclusion k. of Section A. –Coverages.


Form SS 00 08 04 05 Page 17 of 24

(6) When You Are Added As AnAdditional Insured To OtherInsurance

That is other insurance available toyou covering liability for damagesarising out of the premises oroperations, or products and completedoperations, for which you have beenadded as an additional insured by thatinsurance; or

(7) When You Add Others As AnAdditional Insured To ThisInsurance

That is other insurance available to anadditional insured.

However, the following provisionsapply to other insurance available toany person or organization who is anadditional insured under this CoveragePart:

(a) Primary Insurance WhenRequired By Contract

This insurance is primary if youhave agreed in a written contract,written agreement or permit thatthis insurance be primary. If otherinsurance is also primary, we willshare with all that other insuranceby the method described in c.below.

(b) Primary And Non-ContributoryTo Other Insurance WhenRequired By Contract

If you have agreed in a writtencontract, written agreement orpermit that this insurance isprimary and non-contributory withthe additional insured's owninsurance, this insurance isprimary and we will not seekcontribution from that otherinsurance.

Paragraphs (a) and (b) do not apply toother insurance to which the additionalinsured has been added as anadditional insured.

When this insurance is excess, we willhave no duty under this Coverage Part todefend the insured against any "suit" if anyother insurer has a duty to defend theinsured against that "suit". If no otherinsurer defends, we will undertake to doso, but we will be entitled to the insured'srights against all those other insurers.

When this insurance is excess over otherinsurance, we will pay only our share ofthe amount of the loss, if any, thatexceeds the sum of:

(1) The total amount that all such otherinsurance would pay for the loss in theabsence of this insurance; and

(2) The total of all deductible and self-insured amounts under all that otherinsurance.

We will share the remaining loss, if any, withany other insurance that is not described inthis Excess Insurance provision and was notbought specifically to apply in excess of theLimits of Insurance shown in theDeclarations of this Coverage Part.

c. Method Of Sharing

If all the other insurance permitscontribution by equal shares, we will followthis method also. Under this approach,each insurer contributes equal amountsuntil it has paid its applicable limit ofinsurance or none of the loss remains,whichever comes first.

If any of the other insurance does not permitcontribution by equal shares, we willcontribute by limits. Under this method, eachinsurer’s share is based on the ratio of itsapplicable limit of insurance to the totalapplicable limits of insurance of all insurers.

8. Transfer Of Rights Of Recovery AgainstOthers To Us

a. Transfer Of Rights Of Recovery

If the insured has rights to recover all orpart of any payment, includingSupplementary Payments, we have madeunder this Coverage Part, those rights aretransferred to us. The insured must donothing after loss to impair them. At ourrequest, the insured will bring "suit" ortransfer those rights to us and help usenforce them. This condition does notapply to Medical Expenses Coverage.

b. Waiver Of Rights Of Recovery (WaiverOf Subrogation)

If the insured has waived any rights ofrecovery against any person ororganization for all or part of any payment,including Supplementary Payments, wehave made under this Coverage Part, wealso waive that right, provided the insuredwaived their rights of recovery againstsuch person or organization in a contract,agreement or permit that was executedprior to the injury or damage.


Page 18 of 24 Form SS 00 08 04 05

F. OPTIONAL ADDITIONAL INSUREDCOVERAGESIf listed or shown as applicable in the Declarations,one or more of the following Optional AdditionalInsured Coverages also apply. When any of theseOptional Additional Insured Coverages apply,Paragraph 6. (Additional Insureds When Requiredby Written Contract, Written Agreement or Permit)of Section C., Who Is An Insured, does not applyto the person or organization shown in theDeclarations. These coverages are subject to theterms and conditions applicable to BusinessLiability Coverage in this policy, except asprovided below:

1. Additional Insured - Designated Person OrOrganization

WHO IS AN INSURED under Section C. isamended to include as an additional insuredthe person(s) or organization(s) shown in theDeclarations, but only with respect to liabilityfor "bodily injury", "property damage" or"personal and advertising injury" caused, inwhole or in part, by your acts or omissions orthe acts or omissions of those acting on yourbehalf:

a. In the performance of your ongoingoperations; or

b. In connection with your premises ownedby or rented to you.

2. Additional Insured - Managers Or LessorsOf Premises

a. WHO IS AN INSURED under Section C. isamended to include as an additional insuredthe person(s) or organization(s) shown in theDeclarations as an Additional Insured -Designated Person Or Organization; but onlywith respect to liability arising out of theownership, maintenance or use of that part ofthe premises leased to you and shown in theDeclarations.

b. With respect to the insurance afforded tothese additional insureds, the followingadditional exclusions apply:


(1) Any "occurrence" which takes placeafter you cease to be a tenant in thatpremises; or

(2) Structural alterations, newconstruction or demolition operationsperformed by or on behalf of suchperson or organization.

3. Additional Insured - Grantor Of Franchise

WHO IS AN INSURED under Section C. isamended to include as an additional insuredthe person(s) or organization(s) shown in theDeclarations as an Additional Insured -Grantor Of Franchise, but only with respect totheir liability as grantor of franchise to you.

4. Additional Insured - Lessor Of LeasedEquipment

a. WHO IS AN INSURED under Section C. isamended to include as an additionalinsured the person(s) or organization(s)shown in the Declarations as an AdditionalInsured – Lessor of Leased Equipment,but only with respect to liability for "bodilyinjury", "property damage" or "personaland advertising injury" caused, in whole orin part, by your maintenance, operation oruse of equipment leased to you by suchperson(s) or organization(s).

b. With respect to the insurance afforded tothese additional insureds, this insurancedoes not apply to any "occurrence" whichtakes place after you cease to lease thatequipment.

5. Additional Insured - Owners Or OtherInterests From Whom Land Has BeenLeased

a. WHO IS AN INSURED under Section C. isamended to include as an additionalinsured the person(s) or organization(s)shown in the Declarations as an AdditionalInsured – Owners Or Other Interests FromWhom Land Has Been Leased, but onlywith respect to liability arising out of theownership, maintenance or use of that partof the land leased to you and shown in theDeclarations.



(1) Any "occurrence" that takes placeafter you cease to lease that land; or

(2) Structural alterations, newconstruction or demolition operationsperformed by or on behalf of suchperson or organization.

6. Additional Insured - State Or PoliticalSubdivision – Permits

a. WHO IS AN INSURED under Section C. isamended to include as an additionalinsured the state or political subdivisionshown in the Declarations as an Additional


Form SS 00 08 04 05 Page 19 of 24

Insured – State Or Political Subdivision -Permits, but only with respect tooperations performed by you or on yourbehalf for which the state or politicalsubdivision has issued a permit.



(1) "Bodily injury", "property damage" or"personal and advertising injury"arising out of operations performed forthe state or municipality; or

(2) "Bodily injury" or "property damage"included in the "product-completedoperations" hazard.

7. Additional Insured – Vendors

a. WHO IS AN INSURED under Section C. isamended to include as an additionalinsured the person(s) or organization(s)(referred to below as vendor) shown in theDeclarations as an Additional Insured -Vendor, but only with respect to "bodilyinjury" or "property damage" arising out of"your products" which are distributed orsold in the regular course of the vendor'sbusiness and only if this Coverage Partprovides coverage for "bodily injury" or"property damage" included within the"products-completed operations hazard".

b. The insurance afforded to the vendor issubject to the following additional exclusions:

(1) This insurance does not apply to:

(a) "Bodily injury" or "propertydamage" for which the vendor isobligated to pay damages byreason of the assumption ofliability in a contract or agreement.This exclusion does not apply toliability for damages that thevendor would have in the absenceof the contract or agreement;

(b) Any express warrantyunauthorized by you;

(c) Any physical or chemical changein the product made intentionallyby the vendor;

(d) Repackaging, unless unpackedsolely for the purpose of inspection,demonstration, testing, or thesubstitution of parts underinstructions from the manufacturer,and then repackaged in the originalcontainer;

(e) Any failure to make suchinspections, adjustments, tests orservicing as the vendor has agreedto make or normally undertakes tomake in the usual course ofbusiness, in connection with thedistribution or sale of the products;

(f) Demonstration, installation,servicing or repair operations,except such operations performedat the vendor's premises inconnection with the sale of theproduct;

(g) Products which, after distributionor sale by you, have been labeledor relabeled or used as acontainer, part or ingredient of anyother thing or substance by or forthe vendor; or

(h) "Bodily injury" or "propertydamage" arising out of the solenegligence of the vendor for itsown acts or omissions or those ofits employees or anyone elseacting on its behalf. However, thisexclusion does not apply to:

(i) The exceptions contained inSubparagraphs (d) or (f); or

(ii) Such inspections,adjustments, tests or servicingas the vendor has agreed tomake or normally undertakesto make in the usual course ofbusiness, in connection withthe distribution or sale of theproducts.

(2) This insurance does not apply to anyinsured person or organization fromwhom you have acquired suchproducts, or any ingredient, part orcontainer, entering into,accompanying or containing suchproducts.

8. Additional Insured – Controlling Interest

WHO IS AN INSURED under Section C. isamended to include as an additional insuredthe person(s) or organization(s) shown in theDeclarations as an Additional Insured –Controlling Interest, but only with respect totheir liability arising out of:

a. Their financial control of you; orb. Premises they own, maintain or control

while you lease or occupy these premises.


Page 20 of 24 Form SS 00 08 04 05

This insurance does not apply to structuralalterations, new construction and demolitionoperations performed by or for that person ororganization.

9. Additional Insured – Owners, Lessees OrContractors – Scheduled Person OrOrganization

a. WHO IS AN INSURED under Section C. isamended to include as an additionalinsured the person(s) or organization(s)shown in the Declarations as an AdditionalInsured – Owner, Lessees Or Contractors,but only with respect to liability for "bodilyinjury", "property damage" or "personaland advertising injury" caused, in whole orin part, by your acts or omissions or theacts or omissions of those acting on yourbehalf:

(1) In the performance of your ongoingoperations for the additionalinsured(s); or

(2) In connection with "your work"performed for that additional insuredand included within the "products-completed operations hazard", butonly if this Coverage Part providescoverage for "bodily injury" or"property damage" included within the"products-completed operationshazard".

b. With respect to the insurance afforded tothese additional insureds, this insurancedoes not apply to "bodily injury", "propertydamage" or "personal an advertisinginjury" arising out of the rendering of, orthe failure to render, any professionalarchitectural, engineering or surveyingservices, including:

(1) The preparing, approving, or failure toprepare or approve, maps, shopdrawings, opinions, reports, surveys,field orders, change orders, designs ordrawings and specifications; or

(2) Supervisory, inspection, architecturalor engineering activities.

10. Additional Insured – Co-Owner Of InsuredPremises

WHO IS AN INSURED under Section C. isamended to include as an additional insuredthe person(s) or Organization(s) shown in theDeclarations as an Additional Insured – Co-Owner Of Insured Premises, but only withrespect to their liability as co-owner of thepremises shown in the Declarations.

The limits of insurance that apply to additionalinsureds are described in Section D. – Limits OfInsurance.

How this insurance applies when other insuranceis available to an additional insured is described inthe Other Insurance Condition in Section E. –Liability And Medical Expenses GeneralConditions.

G. LIABILITY AND MEDICAL EXPENSESDEFINITIONS1. "Advertisement" means the widespread public

dissemination of information or images thathas the purpose of inducing the sale of goods,products or services through:

a. (1) Radio;(2) Television;(3) Billboard;(4) Magazine;(5) Newspaper;

b. The Internet, but only that part of a website that is about goods, products orservices for the purposes of inducing thesale of goods, products or services; or

c. Any other publication that is givenwidespread public distribution.

However, "advertisement" does not include:

a. The design, printed material, informationor images contained in, on or upon thepackaging or labeling of any goods orproducts; or

b. An interactive conversation between oramong persons through a computer network.

2. "Advertising idea" means any idea for an"advertisement".

3. "Asbestos hazard" means an exposure orthreat of exposure to the actual or allegedproperties of asbestos and includes the merepresence of asbestos in any form.

4. "Auto" means a land motor vehicle, trailer orsemi-trailer designed for travel on publicroads, including any attached machinery orequipment. But "auto" does not include"mobile equipment".

5. "Bodily injury" means physical:

a. Injury;

b. Sickness; or

c. Disease

sustained by a person and, if arising out of theabove, mental anguish or death at any time.

6. "Coverage territory" means:


Form SS 00 08 04 05 Page 21 of 24

a. The United States of America (including itsterritories and possessions), Puerto Ricoand Canada;

b. International waters or airspace, but only ifthe injury or damage occurs in the courseof travel or transportation between anyplaces included in a. above;

c. All other parts of the world if the injury ordamage arises out of:

(1) Goods or products made or sold by youin the territory described in a. above;

(2) The activities of a person whose homeis in the territory described in a.above, but is away for a short time onyour business; or

(3) "Personal and advertising injury"offenses that take place through theInternet or similar electronic means ofcommunication

provided the insured's responsibility to paydamages is determined in the United States ofAmerica (including its territories andpossessions), Puerto Rico or Canada, in a"suit" on the merits according to thesubstantive law in such territory, or in asettlement we agree to.

7. "Electronic data" means information, facts orprograms:

a. Stored as or on;

b. Created or used on; or

c. Transmitted to or from

computer software, including systems andapplications software, hard or floppy disks,CD-ROMS, tapes, drives, cells, dataprocessing devices or any other media whichare used with electronically controlledequipment.

8. "Employee" includes a "leased worker"."Employee" does not include a "temporaryworker".

9. "Executive officer" means a person holdingany of the officer positions created by yourcharter, constitution, by-laws or any othersimilar governing document.

10. "Hostile fire" means one which becomesuncontrollable or breaks out from where it wasintended to be.

11. "Impaired property" means tangible property,other than "your product" or "your work", thatcannot be used or is less useful because:

a. It incorporates "your product" or "your work"that is known or thought to be defective,deficient, inadequate or dangerous; or

b. You have failed to fulfill the terms of acontract or agreement;

if such property can be restored to use by:

a. The repair, replacement, adjustment orremoval of "your product" or "your work";or

b. Your fulfilling the terms of the contract oragreement.

12. "Insured contract" means:

a. A contract for a lease of premises.However, that portion of the contract for alease of premises that indemnifies anyperson or organization for damage by fire,lightning or explosion to premises whilerented to you or temporarily occupied byyou with permission of the owner issubject to the Damage To PremisesRented To You limit described in SectionD. – Liability and Medical Expenses Limitsof Insurance.

b. A sidetrack agreement;

c. Any easement or license agreement,including an easement or licenseagreement in connection with constructionor demolition operations on or within 50feet of a railroad;

d. Any obligation, as required by ordinance,to indemnify a municipality, except inconnection with work for a municipality;

e. An elevator maintenance agreement; or

f. That part of any other contract oragreement pertaining to your business(including an indemnification of amunicipality in connection with workperformed for a municipality) under whichyou assume the tort liability of anotherparty to pay for "bodily injury" or "propertydamage" to a third person or organization,provided the "bodily injury" or "propertydamage" is caused, in whole or in part, byyou or by those acting on your behalf.Tort liability means a liability that would beimposed by law in the absence of anycontract or agreement.

Paragraph f. includes that part of anycontract or agreement that indemnifies arailroad for "bodily injury" or "propertydamage" arising out of construction ordemolition operations within 50 feet of anyrailroad property and affecting any railroadbridge or trestle, tracks, road-beds, tunnel,underpass or crossing.

However, Paragraph f. does not includethat part of any contract or agreement:


Page 22 of 24 Form SS 00 08 04 05

(1) That indemnifies an architect,engineer or surveyor for injury ordamage arising out of:

(a) Preparing, approving or failing toprepare or approve maps, shopdrawings, opinions, reports,surveys, field orders, changeorders, designs or drawings andspecifications; or

(b) Giving directions or instructions,or failing to give them, if that is theprimary cause of the injury ordamage; or

(2) Under which the insured, if anarchitect, engineer or surveyor,assumes liability for an injury ordamage arising out of the insured'srendering or failure to renderprofessional services, including thoselisted in (1) above and supervisory,inspection, architectural orengineering activities.

13. "Leased worker" means a person leased toyou by a labor leasing firm under anagreement between you and the labor leasingfirm, to perform duties related to the conduct ofyour business. "Leased worker" does notinclude a "temporary worker".

14. "Loading or unloading" means the handling ofproperty:

a. After it is moved from the place where it isaccepted for movement into or onto anaircraft, watercraft or "auto";

b. While it is in or on an aircraft, watercraft or"auto"; or

c. While it is being moved from an aircraft,watercraft or "auto" to the place where it isfinally delivered;

but "loading or unloading" does not include themovement of property by means of a mechanicaldevice, other than a hand truck, that is notattached to the aircraft, watercraft or "auto".

15. "Mobile equipment" means any of the followingtypes of land vehicles, including any attachedmachinery or equipment:

a. Bulldozers, farm machinery, forklifts andother vehicles designed for use principallyoff public roads;

b. Vehicles maintained for use solely on ornext to premises you own or rent;

c. Vehicles that travel on crawler treads;

d. Vehicles, whether self-propelled or not, onwhich are permanently mounted:

(1) Power cranes, shovels, loaders,diggers or drills; or

(2) Road construction or resurfacingequipment such as graders, scrapersor rollers;

e. Vehicles not described in a., b., c., or d.above that are not self-propelled and aremaintained primarily to provide mobility topermanently attached equipment of thefollowing types:

(1) Air compressors, pumps andgenerators, including spraying,welding, building cleaning,geophysical exploration, lighting andwell servicing equipment; or

(2) Cherry pickers and similar devicesused to raise or lower workers;

f. Vehicles not described in a., b., c., or d.above maintained primarily for purposesother than the transportation of persons orcargo.

However, self-propelled vehicles with thefollowing types of permanently attachedequipment are not "mobile equipment" butwill be considered "autos":

(1) Equipment, of at least 1,000 poundsgross vehicle weight, designedprimarily for:

(a) Snow removal;

(b) Road maintenance, but notconstruction or resurfacing; or

(c) Street cleaning;

(2) Cherry pickers and similar devicesmounted on automobile or truckchassis and used to raise or lowerworkers; and

(3) Air compressors, pumps andgenerators, including spraying,welding, building cleaning,geophysical exploration, lighting andwell servicing equipment.

16. "Occurrence" means an accident, includingcontinuous or repeated exposure to substantiallythe same general harmful conditions.

17. "Personal and advertising injury" means injury,including consequential "bodily injury", arisingout of one or more of the following offenses:

a. False arrest, detention or imprisonment;

b. Malicious prosecution;


Form SS 00 08 04 05 Page 23 of 24

c. The wrongful eviction from, wrongful entryinto, or invasion of the right of privateoccupancy of a room, dwelling orpremises that the person occupies,committed by or on behalf of its owner,landlord or lessor;

d. Oral, written or electronic publication ofmaterial that slanders or libels a person ororganization or disparages a person's ororganization's goods, products or services;

e. Oral, written or electronic publication ofmaterial that violates a person's right ofprivacy;

f. Copying, in your "advertisement", aperson’s or organization’s "advertisingidea" or style of "advertisement";

g. Infringement of copyright, slogan, or title ofany literary or artistic work, in your"advertisement"; or

h. Discrimination or humiliation that results ininjury to the feelings or reputation of anatural person.

18. "Pollutants" means any solid, liquid, gaseous orthermal irritant or contaminant, including smoke,vapor, soot, fumes, acids, alkalis, chemicals andwaste. Waste includes materials to be recycled,reconditioned or reclaimed.

19. "Products-completed operations hazard";

a. Includes all "bodily injury" and "propertydamage" occurring away from premisesyou own or rent and arising out of "yourproduct" or "your work" except:

(1) Products that are still in your physicalpossession; or

(2) Work that has not yet been completedor abandoned. However, "your work"will be deemed to be completed at theearliest of the following times:

(a) When all of the work called for inyour contract has been completed.

(b) When all of the work to be done atthe job site has been completed ifyour contract calls for work atmore than one job site.

(c) When that part of the work done ata job site has been put to itsintended use by any person ororganization other than anothercontractor or subcontractorworking on the same project.

Work that may need service, maintenance,correction, repair or replacement, butwhich is otherwise complete, will betreated as completed.

The "bodily injury" or "property damage"must occur away from premises you ownor rent, unless your business includes theselling, handling or distribution of "yourproduct" for consumption on premises youown or rent.

b. Does not include "bodily injury" or"property damage" arising out of:

(1) The transportation of property, unlessthe injury or damage arises out of acondition in or on a vehicle not ownedor operated by you, and that conditionwas created by the "loading orunloading" of that vehicle by anyinsured; or

(2) The existence of tools, uninstalledequipment or abandoned or unusedmaterials.

20. "Property damage" means:

a. Physical injury to tangible property,including all resulting loss of use of thatproperty. All such loss of use shall bedeemed to occur at the time of thephysical injury that caused it; or

b. Loss of use of tangible property that is notphysically injured. All such loss of useshall be deemed to occur at the time of"occurrence" that caused it.

As used in this definition, "electronic data" isnot tangible property.

21. "Suit" means a civil proceeding in whichdamages because of "bodily injury", "propertydamage" or "personal and advertising injury"to which this insurance applies are alleged."Suit" includes:

a. An arbitration proceeding in which suchdamages are claimed and to which theinsured must submit or does submit withour consent; or

b. Any other alternative dispute resolutionproceeding in which such damages areclaimed and to which the insured submitswith our consent.

22. "Temporary worker" means a person who isfurnished to you to substitute for a permanent"employee" on leave or to meet seasonal orshort-term workload conditions.

23. "Volunteer worker" means a person who:

a. Is not your "employee";


Page 24 of 24 Form SS 00 08 04 05

b. Donates his or her work;

c. Acts at the direction of and within thescope of duties determined by you; and

d. Is not paid a fee, salary or othercompensation by you or anyone else fortheir work performed for you.

24. "Your product":

a. Means:

(1) Any goods or products, other than realproperty, manufactured, sold, handled,distributed or disposed of by:

(a) You;

(b) Others trading under your name;or

(c) A person or organization whosebusiness or assets you haveacquired; and

(2) Containers (other than vehicles),materials, parts or equipmentfurnished in connection with suchgoods or products.

b. Includes:

(1) Warranties or representations made atany time with respect to the fitness,quality, durability, performance or useof "your product"; and

(2) The providing of or failure to providewarnings or instructions.

c. Does not include vending machines orother property rented to or located for theuse of others but not sold.

25. "Your work":

a. Means:

(1) Work or operations performed by youor on your behalf; and

(2) Materials, parts or equipmentfurnished in connection with such workor operations.

b. Includes:

(1) Warranties or representations made atany time with respect to the fitness,quality, durability, performance or useof "your work"; and

(2) The providing of or failure to providewarnings or instructions.

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

Form SS 00 60 09 15 Page 1 of 2


AMENDATORY ENDORSEMENT

This endorsement modifies insurance provided under the following:


A. Sub-subparagraphs 1.p. (7), (8), (15) of Paragraph2., of Section B. Exclusions are deleted andreplaced with the following:p. Personal and Advertising Injury:

(7) (a) Arising out of any actual or allegedinfringement or violation of any intellectualproperty right, such as copyright, patent,trademark, trade name, trade secret,service mark or other designation of originor authenticity; or(b) Any injury or damage alleged in any

claim or "suit" that also alleges aninfringement or violation of anyintellectual property right, whethersuch allegation of infringement orviolation is made by you or by anyother party involved in the claim or"suit", regardless of whether thisinsurance would otherwise apply.

However, this exclusion does not apply if theonly allegation in the claim or "suit" involvingany intellectual property right is limited to:

(1) Infringement, in your "advertisement",of:(a) Copyright;(b) Slogan; or(c) Title of any literary or artistic work;

or(2) Copying, in your "advertisement", a

person's or organization's "advertisingidea" or style of "advertisement".

(8) Arising out of an offense committed by aninsured whose business is:(a) Advertising, broadcasting, publishing

or telecasting;(b) Designing or determining content of

web sites for others; or

(c) An Internet search, access, content orservice provider.

However, this exclusion does notapply to Paragraphs a., b. and c. ofthe definition of "personal andadvertising injury" under theDefinitions Section.

For the purposes of this exclusion, theplacing of frames, borders or links, oradvertising, for you or othersanywhere on the Internet, is not byitself, considered the business ofadvertising, broadcasting, publishingor telecasting.

(15) Arising out of any access to or disclosureof any person's or organization'sconfidential or personal information,including patents, trade secrets,processing methods, customer lists,financial information, credit cardinformation, health information or anyother type of nonpublic information.Thisexclusion applies even if damages areclaimed for notification costs, creditmonitoring expenses, forensic expenses,public relations expenses or any otherloss, cost or expense incurred by you orothers arising out of any access to ordisclosure of any person's ororganization's confidential or personalinformation.

B. Subparagraph 1.r. of Section B. Exclusions isdeleted and replaced with the following:

r. Employment-Related Practices

"Personal and advertising injury" to:

(1) A person arising out of any "employment–related practices"; or

of 2 Form SS 00 60 09 15

(2) The spouse, child, parent, brother or sisterof that person as a consequence of"personal and advertising injury" to thatperson at whom any "employment-relatedpractices" are directed.


(a) Whether the injury-causing eventdescribed in the definition of"employment-related practices"occurs before employment, duringemployment or after employment ofthat person;

(b) Whether the insured may be liable asan employer or in any other capacity;and

(c) To any obligation to share damageswith or repay someone else who mustpay damages because of the injury.

C. Subparagraph 1.q. "Electronic Data" of Section B.Exclusions is deleted and replaced with thefollowing:

q. Access Or Disclosure Of Confidential OrPersonal Information And Data-relatedLiability

(1) Damages, other than damages becauseof "personal and advertising injury",arising out of any access to or disclosureof any person's or organization'sconfidential or personal information,including patents, trade secrets,processing methods, customer lists,financial information, credit cardinformation, health information or anyother type of nonpublic information; or

(2) Damages arising out of the loss of, loss ofuse of, damage to, corruption of, inabilityto access, or inability to manipulateelectronic data.

This exclusion applies even if damages areclaimed for notification costs, credit monitoringexpenses, forensic expenses, public relationsexpenses or any other loss, cost or expenseincurred by you or others arising out of that whichis described in Paragraph (1) or (2) above.

However, unless Paragraph (1) above applies, thisexclusion does not apply to damages because of"bodily injury".

As used in this exclusion, electronic data meansinformation, facts or computer programs stored asor on, created or used on, or transmitted to orfrom computer software (including systems andapplications software), on hard or floppy disks,CD-ROMs, tapes, drives, cells, data processingdevices or any other repositories of computersoftware which are used with electronicallycontrolled equipment. The term computerprograms, referred to in the foregoing descriptionof electronic data, means a set of relatedelectronic instructions which direct the operationsand functions of a computer or device connectedto it, which enable the computer or device toreceive, process, store, retrieve or send data.

D. Sub-subparagraph 7.b.(1) Other Insurance ofSection E. Liability and Medical ExpensesGeneral Conditions is deleted and replaced withthe following:

b. Excess Insurance

(1) Your Work

That is Fire, Extended Coverage, Builder'sRisk, Installation Risk, Owner ControlledInsurance Program or OCIP, Wrap UpInsurance or similar coverage for "yourwork".

E. Subparagraph 17. c. "Personal and AdvertisingInjury" of Section G, Liability and MedicalExpenses Definitions is deleted and replacedwith the following:

"Personal and advertising injury" means injury,including consequential "bodily injury", arising outof one or more of the following offenses:

c. The wrongful eviction from, wrongful entryinto, or invasion of the right of privateoccupancy of a room, dwelling or premisesthat a person or organization occupies,committed by or on behalf of its owner,landlord or lessor;

F. Subparagraph 17.h. of Section G, Liability andMedical Expenses Definitions deleted.



SPECIAL PROPERTY COVERAGE

AMENDATORY ENDORSEMENT



I. The following provisions modify the SpecialProperty Coverage Form.A. Property Definitions

"Data" G.4. is deleted and replaced with thefollowing.4. "Electronic data" means information, facts

or computer programs stored as or on,created or used on, or transmitted to orfrom computer software (includingsystems and applications software), onhard or floppy disks, CD-ROMs, tapes,drives, cells, data processing devices orany other repositories of computersoftware which are used withelectronically controlled equipment. Theterm computer programs, referred to inthe foregoing description of electronicdata, means a set of related electronicinstructions which direct the operationsand functions of a "computer" or deviceconnected to it, which enable the"computer" or device to receive, process,store, retrieve or send data.

B. Exclusions1. Earth Movement B.1.a is amended to

add the following:This Exclusion applies regardless ofwhether any of the following is caused byweather, an act of nature, by an artificial,man-made or other cause.

2. The following is added to Exclusions B.1:h. Electronic Vandalism or Corruption

of "Electronic Data" or Corruptionof "Computer Equipment"This exclusion does not apply if SS 1429 Electronic Vandalism or SS 40 08Electronic Vandalism has been madepart of this policy.

Electronic Vandalism or Corruption of"Electronic Data" or Corruption of"Computer Equipment" which means:

(1) A virus, malicious code or similarinstruction introduced into orenacted on a computer system(including "electronic data") or anetwork to which it is connected,designed to damage or destroyany part of the system or disruptits normal operation.

(2) Unauthorized viewing, copying oruse of electronic data (or anyproprietary or confidentialinformation or intellectual propertyin any form) by any person, evenif such activity is characterized as"theft";

(3) Errors or omissions inprogramming or processing"electronic data";

(4) Errors or deficiency in design,installation, maintenance, repairor modification of your computersystem or any computer systemor network to which your systemis connected or on which yoursystem depends (including"electronic data");

(5) Manipulation of your computersystem, including "electronicdata", by an employee, volunteerworker or contractor, for thepurpose of diverting or destroying"electronic data" or causingfraudulent or illegal transfer of anyproperty;

of 2 Form SS 00 61 09 15

(6) Interruption in normal computerfunction or network service orfunction due to insufficientcapacity to process transactionsor to an overload of activity on thesystem or network;

(7) Unexplained or indeterminablefailure, malfunction or slowdownof a computer system, including"electronic data" and the inabilityto access or properly manipulatethe "electronic data";

(8) Complete or substantial failure,disablement or shutdown of theInternet, regardless of the cause;

(9) The inability of a computer systemto correctly recognize, process,distinguish, interpret or acceptone or more dates or times.



BUSINESS LIABILITY COVERAGE FORMAMENDATORY ENDORSEMENT-SUPPLEMENTARY PAYMENTS



A. Sub-subparagraph 3.a.(5) of Paragraph 3., Section A. Coverages is deleted and replaced with the following:

3. Coverage Extension - Supplementary Payments:

a. (5) All court costs taxed against the insured in the "suit". However, these payments do not includeattorneys' fees or attorneys' expenses taxed against the insured.



CALIFORNIA CHANGES


COMMON POLICY CONDITIONSSPECIAL PROPERTY COVERAGE FORM

STANDARD PROPERTY COVERAGE FORMBUSINESS LIABILITY COVERAGE FORM

EMPLOYMENT PRACTICES LIABILITY COVERAGE FORM

A. Paragraphs 2. and 3. of the Cancellation CommonPolicy Condition are replaced by the following:2. All Policies in Effect for 60 Days Or Less:

If this policy has been in effect for 60 days orless, and is not a renewal of a policy we havepreviously issued, we may cancel this policy bymailing or delivering to the first Named Insuredat the mailing address shown in the policy and tothe producer of record, advance written notice ofcancellation, stating the reason for cancellation,at least:a. 10 days before the effective date of

cancellation if we cancel for:(1) Nonpayment of premium; or(2) Discovery of fraud or material

misrepresentation by:(a) Any insured or his or her

representative in obtaining thisinsurance; or

(b) You or your representative inpursuing a claim under this policy.

b. 30 days before the effective date ofcancellation if we cancel for any other reason.

3. All Policies in Effect For More Than 60 Daysa. If this policy has been in effect for more than

60 days, or is a renewal of a policy weissued, we may cancel this policy only uponthe occurrence, after the effective date ofthe policy, of one or more of the following, oras permitted under applicable California law:(1) Nonpayment of premium, including

payment due on a prior policy we issuedand due during the current policy termcovering the same risks.

(2) Discovery of fraud or materialmisrepresentation by:(a) Any insured or his or her

representative in obtaining thisinsurance; or

(b) You or your representative inpursuing a claim under this policy.

(3) A judgment by a court or anadministrative tribunal that you haveviolated a California or Federal law,having as one of its necessary elementsan act which materially increases any ofthe risks insured against.

(4) Discovery of willful or grossly negligentacts or omissions, or of any violations ofstate laws or regulations establishingsafety standards, by you or yourrepresentative, which materially increaseany of the risks insured against.

(5) Failure by you or your representative toimplement reasonable loss controlrequirements, agreed to by you as acondition of policy issuance, or whichwere conditions precedent to our use ofa particular rate or rating plan, if thatfailure materially increases any of therisks insured against.

(6) A determination by the Commissioner ofInsurance that the:(a) Loss of, or changes in, our

reinsurance covering all or part ofthe risk would threaten our financialintegrity or solvency; or

(b) Continuation of the policy coveragewould:i. Place us in violation of

California law or the laws of thestate where we are domiciled;or

ii. Threaten our solvency.(7) A change by you or your representative

in the activities or property of thecommercial or industrial enterprise,which results in a materially added,increased or changed risk, unless the

of 4 Form SS 01 21 03 17

added, increased or changed risk isincluded in the policy.

i. Place us in violation ofCalifornia law or the laws of thestate where we are domiciled;or

ii. Threaten our solvency.

(7) A change by you or your representativein the activities or property of thecommercial or industrial enterprise,which results in a materially added,increased or changed risk, unless theadded, increased or changed risk isincluded in the policy.

b. We will mail or deliver advance writtennotice of cancellation, stating the reason forcancellation, to the first Named Insured, atthe mailing address shown in the policy, andto the producer of record, at least:

(1) 10 days before the effective date ofcancellation if we cancel fornonpayment of premium or discovery offraud, or

(2) 30 days before the effective date ofcancellation if we cancel for any otherreason listed in paragraph 3.a.

B. The following provisions is added to theCancellation Common Policy Condition:

7. Residential Property

This provision applies to coverage on realproperty which is used predominantly forresidential purposes and consisting of notmore than four dwelling units, and tocoverage on tenants' household personalproperty in a residential unit, if suchcoverage is written under this policy:

a. If such coverage has been in effect for60 days or less, and is not a renewal ofcoverage we previously issued, we maycancel this coverage for any reason,except as provided in b. and c. below.

b. We may not cancel solely because thefirst Named Insured has:

(1) Accepted an offer of earthquakecoverage; or

(2) Cancelled or did not renew a policyissued by the California EarthquakeAuthority (CEA) that included andearthquake policy premiumsurcharge. However, we shallcancel this policy if the first NamedInsured has accepted a new orrenewal policy issued by the CEAthat includes an earthquake policypremium surcharge but fails to paythe earthquake policy premiumsurcharge authorized by the CEA.

c. We may not cancel such coveragesolely because corrosive soil conditionsexist on the premises. This restriction(c.) applies only if coverage under theSpecial Property Coverage Form,which excludes loss or damage causedby or resulting from corrosive soilconditions.

C. The following is added and supersedes anyprovisions to the contrary:

NONRENEWAL

1. Subject to the provisions of paragraphs C.2. andC.3. below, if we elect not to renew this policy,we will mail or deliver written notice stating thereason for nonrenewal to the first NamedInsured shown in the Declarations and to theproducer of record, at least 60 days but notmore than 120 days, before the expiration oranniversary date.

We will mail or deliver our notice to the firstNamed Insured, and to the producer of record,at the mailing address shown in the policy.

2. Residential Property

This provision applies to coverage on realproperty used predominantly for residentialpurposes and consisting of not more than fourdwelling units, and to coverage on tenants'household property contained in a residentialunit, if such coverage is written under this policy.

a. We may elect not to renew such coveragefor any reason, except as provided in b., c.and d. below:

b. We will not refuse to renew such coveragesolely because the first Named Insured hasaccepted an offer of earthquake coverage.

However, the following applies only toinsurers who are associated participatinginsurers as established by Cal. Ins. CodeSection 10089.16. We may elect not torenew such coverage after the first NamedInsured has accepted an offer of earthquakecoverage, if one or more of the followingreasons applies:

(1) The nonrenewal is based on soundunderwriting principles that relate to thecoverages provided by this policy andthat are consistent with the approvedrating plan and related documents filedwith the Department of Insurance asrequired by existing law;

(2) The Commissioner of Insurance findsthat the exposure to potential losses willthreaten our solvency or place us in ahazardous condition. A hazardouscondition in which we make claimspayments for losses resulting from anearthquake that occurred within the

Form SS 01 21 03 17 Page 3 of 4

preceding two years and that required areduction in policyholder surplus of atleast 25% for payment of those claims;or

(2) The Commissioner of Insurance findsthat the exposure to potential losses willthreaten our solvency or place us in ahazardous condition. A hazardouscondition in which we make claimspayments for losses resulting from anearthquake that occurred within thepreceding two years and that required areduction in policyholder surplus of atleast 25% for payment of those claims;or

(3) We have:

(a) Lost or experienced a substantialreduction in the availability or scopeof reinsurance coverage; or

(b) Experienced a substantial increasein the premium charged forreinsurance coverage of ourresidential property insurancepolicies; and the Commissioner hasapproved a plan for thenonrenewals that is fair andequitable, and that is responsive tothe changes in our reinsuranceposition.

(c) We will not refuse to renew suchcoverage solely because the firstNamed Insured has cancelled or didnot renew a policy, issued by theCalifornia Earthquake Authority thatincluded an earthquake policypremium surcharge.

(d) We will not refuse to renew suchcoverage solely because corrosivesoil conditions exist on thepremises. This restriction (d)applies only if coverage is subject tothe Special Property CoverageForm, which excludes loss ordamage caused by or resulting fromcorrosive soil conditions.

3. We are not required to send notice ofnonrenewal in the following situations:

a. If the transfer or renewal of a policy, withoutany changes in terms, conditions, or rates,is between us and a member of ourinsurance group.

b. If the policy has been extended for 90 daysor less, provided that notice has been givenin accordance with paragraph C.1.

c. If you have obtained replacement coverage,or if the first Named Insured has agreed, inwriting, within 60 days of the termination ofthe policy, to obtain that coverage.

d. If the policy is for a period of no more than60 days and you are notified at the time ofissuance that it will not be renewed.

e. If the first Named Insured requests achange in the terms or conditions or riskscovered by the policy within 60 days of theend of the policy period.

f. If we have made a written offer to the firstNamed Insured, in accordance with the timeframes shown in paragraph C.1., to renewthe policy under changed terms orconditions or at an increased premium rate,when the increase exceeds 25%.

If there is an appraisal, we will still retain ourright to deny the claim.

D. The Concealment, Misrepresentation Or FraudCondition is replaced by the following with respect toloss of damage caused by fire:

We do not provide coverage to the insured who,whether before or after a loss, has committed fraudor intentionally concealed or misrepresented anymaterial fact or circumstance concerning:

1. This Coverage Part;


3. That insured's interest in the Covered Property;or

4. A claim under this Coverage Part or CoverageForm.

E. The Concealment, Misrepresentation Or FraudCondition is replaced by the following with respect toloss of damage caused by a Covered Cause of Lossother than fire:

This Coverage Part is void if any insured, whetherbefore or after a loss, has committed fraud orintentionally concealed or misrepresented anymaterial fact or circumstance concerning:

1. This Coverage Part;


3. That insured's interest in the Covered Property;or

4. A claim under this Coverage Part or CoverageForm.

F. The Other Insurance - Property CoverageCondition is replaced by the following:

If there is other insurance covering the same loss ordamage, we will pay our share of the covered loss ordamage. Our share is the proportion that theapplicable limit of insurance bears to the limits ofinsurance of all insurance covering on same basis.

G. The Appraisal Property Loss Condition of theStandard and Special Property Form is replacedby the following:

If we and you disagree on the value of the propertyor the amount of loss, either may make written

of 4 Form SS 01 21 03 17

request for an appraisal of the loss. If the request isaccepted, each party will select a competent andimpartial appraiser. Each party shall notify the otherof the appraiser selected within 20 days of therequest. The two appraisers will select an umpire. Ifthey cannot agree within 15 days, either mayrequest that selection be made by a judge of a courthaving jurisdiction. The appraisers will stateseparately the value of the property and amount ofloss. If they fail to agree, they will submit theirdifferences to the umpire. A decision agreed to byany two will be binding. Each party will:a. Pay its chosen appraiser; and

b. Bear the other expenses of the appraisal andumpire equally.

If there is an appraisal, we will still retain our right todeny the claim.

H. With respect to an "Open Policy", the LossPayment Condition of the Standard and SpecialProperty Form is amended by the following:

1. Paragraph 5.d.(1).(b). of the Loss Paymentcondition is deleted and replaced by:

We will not pay on a replacement cost basis forany loss or damage until the lost or damagedproperty is actually repaired or replaced, andthen only subject to deduction for depreciation.Prior to such repair or replacement, and inaccordance with the terms applicable LossPayment conditions in this policy, we will pay theactual cash value of the lost or damagedproperty as described in this endorsement. If theactual cash value does not exhaust theapplicable Limit of Insurance, we will then paythe difference between the actual cash valueand the replacement cost, provided that therepair or replacement is completed:a. Within 12 months after our payment of the

actual cash value; or

b. Within 24 months after our payment of theactual cash value if the loss or damagerelates to a state of emergency as describedin Section 8558 of the Government Code;

unless we extend the time period for goodcause.

The foregoing provisions do not constitute awaiver of our right to deny the claim for any validreason or to restrict payment in cases ofsuspected fraud.

2. Actual cash value is determined as follows:

a. In the event of a total loss to a building orstructure, actual cash value is calculated asthe Limit of Insurance applicable to thatbuilding or structure or the fair market valueof the building or structure, which ever isless.

b. In the event of a partial loss to a building orstructure, actual cash value is calculated asshown below, which ever is less:

(1) The amount it would cost to repair,rebuild or replace the property less a fairand reasonable deduction for physicaldepreciation of the components of thebuilding or structure that are normallysubject to repair or replacement duringits useful life. Physical depreciation isbased upon the condition of the propertyat the time of the loss;

(2) The limit of Insurance applicable to theproperty.

c. In the event of a partial or total loss toCovered Property other than a building orstructure, actual cash value is calculated asthe lesser of the following:

(1) The amount it would cost to repair orreplace the property less a fair andreasonable deduction for physicaldepreciation, based on the condition ofthe property at the time of loss; or

(2) The Limit of Insurance applicable to theproperty.

3. An "Open Policy" is a policy under which thevalue of Covered Property is not fixed at policyinception, but is determined at the time of loss inaccordance with policy provisions on valuation.The term "open policy" does not apply toCovered Property that is subject to an AgreedValue clause or similar clause that establishesan agreed value prior to loss, unless suchclause has expired.


Form SS 01 45 03 97 Printed in U.S.A. (NS)

Copyright, Hartford Fire Insurance Company, 1997

TENNESSEE CHANGES -CANCELLATION AND NONRENEWAL



A. Paragraph 2.a. of the CANCELLATION CommonPolicy Condition does not apply.

B. Paragraph 5. of the CANCELLATION Common PolicyCondition is replaced by the following:

5. If this policy is cancelled, we will send the firstNamed Insured any premium refund due.

The refund will be pro rata if:

a. We cancel; or

b. The policy is cancelled at the request of apremium finance company that has financed thispolicy under a premium finance agreement.

The refund may be less than pro rata if the firstNamed Insured cancels the policy.

The cancellation will be effective even if we havenot made or offered a refund.

C. The follow ing is added to the CANCELLATIONCommon Policy Condition:

CANCELLATION OF POLICIES IN EFFECT FOR 60DAYS OR MORE.

If this policy has been in effect for 60 days ormore, or if this policy is a renewal of a policy weissued, we may cancel this policy only for one ormore of the following reasons:

1. Nonpayment of premium, including any additionalpremium, calculated in accordance with ourcurrent rating manual, justified by a physicalchange in the insured property or a change in itsoccupancy or use;

2. Your conviction of a crime increasing any hazardinsured against;

3. Discovery of fraud or material misrepresentationon the part of either of the following:

a. You or your representative in obtaining thisinsurance; or

b. You in pursuing a claim under this policy;

4. Failure to comply with written loss controlrecommendations;

5. Material change in the risk which increases therisk of loss after we issued or renewed insurancecoverage;

6. Determination by the insurance commissioner thatthe continuation of the policy would jeopardize oursolvency or would place us in violation of theinsurance laws of Tennessee or any other state;

7. Your violation or breach of any policy terms orconditions; or

8. Other reasons that are approved by the insurancecommissioner.

Notice of cancellation will state the reason forcancellation.

C. The following is added:

NONRENEWAL

1. If we decide not to renew this policy, we will mailor deliver written notice of nonrenewal to the firstNamed Insured and agent, at least 60 daysbefore the expiration date unless:

a. We have offered to issue a renewal policy; or

b. You have obtained replacement coverage orhave agreed in writing to obtain replacementcoverage.

2. Any notice of nonrenewal will be mailed ordelivered to the first Named Insured's and agent'saddresses shown in the policy. If notice is mailed,proof of mailing will be sufficient proof of notice.

D. The following is added to the PREMIUMS CommonPolicy Condition:

of 2 Form SS 01 45 03 97 Printed in U.S.A. (NS)


5. Whenever an insurance policy which is financedwith a premium finance company is cancelled, theinsurer shall return within 30 days after theeffective date of the cancellation, whatever grossunearned premiums are due under the insurancepolicy directly to the premium finance company forthe account of the first Named Insured.

72 SBA AP9428

04/10/19 06/25/20

POLICY NUMBER:


Form SS 42 06 03 17 Page 1 of 2Process Date: Policy Expiration Date:

UNMANNED AIRCRAFT - LIABILITY ENDORSEMENTThis endorsement modifies insurance provided under the following:


SCHEDULE

Option 1: If an "X" is shown in this box, Bodily Injury and Property Damage coverage for Unmanned Aircraftapplies and the Unmanned Aircraft Exclusion in Paragraph A.1.g.(1) of this endorsement does not apply.

Option 2: If an "X" is shown in this box, Personal And Advertising Injury coverage for Unmanned Aircraftapplies and the Unmanned Aircraft - Personal And Advertising Injury Exclusion in Paragraph A.2. of thisendorsement does not apply.

Except as otherwise stated in this endorsement or theschedule above, the terms and conditions of the policyapply to the insurance stated below.A. The following changes are made to Section B.1.,

EXCLUSIONS:1. Paragraph g., Aircraft, Auto or Watercraft, is

deleted and replaced with the following:g. Aircraft, Auto or Watercraft

(1) Unmanned Aircraft"Bodily injury" or "property damage"arising out of the ownership,maintenance, use or entrustment toothers of any aircraft that is an"unmanned aircraft". Use includesoperation and "loading or unloading".This Paragraph g.(1) applies even if theclaims against any insured allegenegligence or other wrongdoing in thesupervision, hiring, employment, trainingor monitoring of others by that insured, ifthe "occurrence" which caused the"bodily injury" or "property damage"involved the ownership, maintenance,use or entrustment to others of anyaircraft that is an "unmanned aircraft".

(2) Aircraft (Other Than UnmannedAircraft), Auto Or Watercraft"Bodily injury" or "property damage"arising out of the ownership,maintenance, use or entrustment toothers of any aircraft (other than"unmanned aircraft), "auto" or watercraft

owned or operated by or rented orloaned to any insured. Use includesoperation and "loading or unloading".This Paragraph g.(2) applies even if theclaims against any insured allegenegligence or other wrongdoing in thesupervision, hiring, employment, trainingor monitoring of others by that insured, ifthe "occurrence" which caused the"bodily injury" or "property damage"involved the ownership, maintenance,use or entrustment to others of anyaircraft (other than "unmanned aircraft),"auto" or watercraft that is owned oroperated by or rented or loaned to anyinsured.Paragraph g. (2) does not apply to:(a) A watercraft while ashore on

premises you own or rent;(b) A watercraft you do not own that is:

(i) Less than 51 feet long; and(ii) Not being used to carry persons

for a charge;(c) Parking an "auto" on, or on the

ways next to, premises you own orrent, provided the "auto" is notowned by or rented or loaned to youor the insured;

(d) Liability assumed under any"insured contract" for the ownership,maintenance or use of aircraft orwatercraft;

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(e) "Bodily injury" or "property damage"arising out of the operation of any ofthe equipment listed in Section GLiability and Medical ExpensesDefinitions, Paragraph 15 f. (2) or f.(3) of the definition of "mobileequipment"; or

(f) An aircraft (other than unmannedaircraft) that is not owned by anyinsured and is hired, chartered orloaned with a paid crew. However,this exception does not apply if theinsured has any other insurance forsuch "bodily injury" or "propertydamage", whether the otherinsurance is primary, excess,contingent or on any other basis.

2. The following is added to Section B.EXCLUSIONS Paragraph p., Personal andAdvertising Injury:

Unmanned Aircraft - Personal andAdvertising Injury

Arising out of the ownership,maintenance, use or entrustment toothers of any aircraft that is an"unmanned aircraft". Use includesoperation and "loading or unloading".

This exclusion applies even if the claimsagainst any insured allege negligence orother wrongdoing in the supervision,hiring, employment, training ormonitoring of others by that insured, ifthe offense which caused the "personaland advertising injury" involved theownership, maintenance, use orentrustment to others of any aircraft thatis an "unmanned aircraft".

However, this exclusion does not applyif the only allegation in the claim or "suit"involves an intellectual property rightwhich is limited to:

(a) Infringement, in your"advertisement", of:

(i) Copyright;

(ii) Slogan; or

(iii) Title of any literary or artisticwork; or

(b) Copying, in your "advertisement", aperson's or organization's"advertising idea" or style of"advertisement".

B. The following changes apply to Section G.LIABILITY AND MEDICAL EXPENSESDEFINITIONS:

1. The following definition is added:

"Unmanned aircraft" means an aircraft that isnot:

a. Designed;

b. Manufactured; or

c. Modified after manufacture

to be controlled directly by a person from withinor on the aircraft.


Form SS 04 19 04 09 Page 1 of 1

© 2009, The Hartford

BUSINESS INCOME EXTENSION FOR OFF-PREMISESUTILITY SERVICES



This insurance applies only when Business Income andExtra Expense is shown in the Declarations asapplicable. Except as otherwise stated in thisendorsement, the terms and conditions of the policyapply to the insurance stated below.

A. BUSINESS INCOME EXTENSION FOR OFF-PREMISES UTILITY SERVICES

This Coverage Extension applies only when theBusiness Income Additional Coverage is included inthis policy.

We will pay for loss of Business Income or ExtraExpense at the "scheduled premises" caused by theinterruption of service to the "scheduled premises".The interruption must result from direct physical lossor physical damage by a Covered Cause of Loss tothe following property not on "scheduled premises":

1. "Water Supply Services";

2. "Communication Supply Services"; or

3. "Power Supply Services".

B. WAITING PERIOD

We will only pay for loss you sustain after the first12 consecutive hours following the direct physicalloss of or physical damage to the off-premisesproperty to which this endorsement applies. We willnot pay for any reduction in business income orextra expense after electricity, steam or gas hasbeen restored to the "scheduled premises".

C. LIMIT OF INSURANCE

The most we will pay in any one occurrence for lossunder this extension is the limit of insurance shownin the Declarations at each "scheduled premises".

D. ADDITIONAL DEFINITIONS

1. "Water Supply Services", meaning thefollowing types of property supplying water tothe "scheduled premises":a. Pumping stations; and

b. Water mains.

2. "Communication Supply Services", meaningproperty, including overhead transmission linessupplying communication services, includingtelephone, radio, microwave or televisionservices, to the "scheduled premises", such as:a. Communication transmission lines,

including optic fiber transmission lines;b. Coaxial cables; andc. Microwave radio relays except satellites.

3. "Power Supply Services", meaning thefollowing types of property supplying electricity,steam or gas, including overhead transmissionlines to the "scheduled premises":a. Utility generating plants;b. Switching stations;c. Substations;d. Transformers; ande. Transmission Lines.



FINE ARTS



This insurance applies only when the property iscovered under the Special Property Coverage Form.Except as otherwise stated in this endorsement, theterms and conditions of the policy apply to the insurancestated below.

The following changes are made to the Special PropertyCoverage Form:

A. Under A. Coverage:

1. The following paragraph is added to 1. CoveredProperty:

Fine Arts listed and described in theDeclarations or Schedule which are:

a. Owned by you; or

b. Owned by others, and in your care, custodyand control; and

c. Located at the “scheduled premises”, or intransit to and from the “scheduledpremises”, or at your residence.

2. The following is added to Paragraph 2.Property Not Covered with respect to coverageafforded by this endorsement:

Property on exhibition at fairgrounds or at anytype of exposition, unless such locations arelisted and described in the Declarations orSchedule.

3. The following special Limitation provisionapplies to property covered by thisendorsement:

Art glass windows, glassware, statuary,marbles, bric-a-brac, porcelains and otherarticles of fragile or brittle nature are coveredagainst loss by breakage only if loss or damageis caused by "specified causes of loss."

4. Section B. EXCLUSIONS do not apply tocoverage afforded under this endorsement,except for:

(1) Governmental Action;

(2) Nuclear Hazard; and

(3) War and Military Action.

5. Additional Exclusions

We will not pay for physical loss or physicaldamage caused by or resulting from:a. Delay, loss of use, loss of market, or any

other causes of consequential loss;

b. Wear and tear, depreciation orobsolescence;

c. Rust, corrosion, fungus, decay,deterioration, hidden or latent defect, or anyquality in property that causes it to damageor destroy itself;

d. Insects, birds, rodents or other animals.

e. Dishonest acts by:

(1) You or any of your partners;

(2) Your directors or trustees;

(3) Your authorized representatives oremployees; or

(4) Anyone, other than a carrier for hire, towhom you entrusted the CoveredProperty, including their employees, forany purpose:

Whether acting alone or in collusion withothers; andWhether or not occurring during the hours ofemployment.

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f. Voluntary parting with any property whetheror not induced to do so by any fraudulentscheme, trick, device or false pretense.

g. Unauthorized instructions to transferproperty to any person or to any place.

h. Theft from any unattended vehicle unless atthe time of theft its windows, doors andcompartments were closed and locked andthere are visible signs that the theft was theresult of forced entry.

But this exclusion does not apply to propertyin the custody of a carrier for hire.

i. Processing or work performed upon theproperty.

B. Limits of Insurance

Section C. LIMITS OF INSURANCE is replaced bythe following:

The most we will pay for physical loss or physicaldamage in any one occurrence for property coveredunder this endorsement is the Limit of Insuranceshown in the Declarations for “Fine Arts”, but nomore than $25,000 for any one item of “Fine Arts”.

C. Deductible

We will adjust loss in any one occurrence under thisendorsement as a single loss. The only deductibleamount that applies under this coverage is the largerof:

1. $250; or

2. The amount shown in the Declarations as adeductible applicable to this coverage.

D. Additional Conditions

1. Valuation

The following is added to Section E.PROPERTY LOSS CONDITIONS:

The value of Covered Property will be theamount shown in the Declarations or Schedulefor each item of Covered Property, which isagreed to be the value of the item.

2. Pair or Set

In case of total loss to an item of CoveredProperty which is part of a pair or set, we agreeto pay you the full amount of the pair or set asshown in the Declarations or Schedule and youagree to surrender the remaining item(s) of thepair or set to us.

3. Packing

You agree that Covered Property will be packedand unpacked by competent packers.

E. Additional Definition

The following definition is added to Section H.DEFINITIONS:

"Fine Arts" meaning paintings, etchings, pictures,tapestries, art glass windows, valuable rugs,statuary, marbles, bronzes, antique furniture, rarebooks, antique silver, manuscripts, porcelains, rareglass, bric-a-brac, and similar property of rarity,historical value or artistic merit.

F. Recovered Property

If either you or we recover any property after losssettlement, that party must give the other promptnotice. At your option, you may retain the property.But then you must return to us the amount we paidto you for the property. We will pay recoveryexpenses and the expenses to repair the CoveredProperty, subject to the Limit of Insurance.



CONTRACTORS EQUIPMENT COVERAGEThis endorsement modifies insurance provided under the following:


Except as otherwise stated in this endorsement, theterms and conditions of the policy apply to the insurancestated below.

The following changes are made to the Special PropertyCoverage Form:

A. The following is added to A.2. Property NotCovered:

Scheduled contractor’s equipment, except asprovided for under this Contractor’s EquipmentCoverage endorsement.

B. CONTRACTOR’S EQUIPMENT COVERAGE

1. Covered Property

We will pay for direct physical loss or damage toCovered Property caused by any of the CoveredCauses of Loss. Covered Property as used inthis endorsement means the ContractorsEquipment listed and described in theDeclarations or Schedule, owned by you orothers from whom you have leased or rentedsuch property under written contract oragreement and for which you are legally liable.Permanently mounted equipment onautomobiles, motor trucks and other vehiclessubject to motor vehicle registration isconsidered covered property and not subject toparagraph B.2. Property Not Covered of thisform and A.2. Property Not Covered provisionof the Special Property Coverage form.

2. Property Not Covered

Covered Property under this endorsement doesnot include:

a. Equipment which is loaned, rented, hired, orleased to others by you;

b. Automobiles, motor trucks, tractors, trailers,motorcycles, aircraft, or watercraft;

c. Property while waterborne or airborne,except while in transit in the custody of acarrier for hire;

d. Property used or to be used in theconstruction of any dam, tunnel, floodcontrol project, bridge, overpass, pier,wharf, or dock;

e. Typewriters, photocopiers, computers,adding machines, calculators, dictationequipment or other general office equipment;

f. Two-way or citizen's band radios, cellulartelephones or similar communicationsequipment devices while contained on or inany motor vehicle licensed for highway or roaduse;

g. Currency, "money," deeds, notes,"securities," checks, drafts or stamps;

h. Contraband or property in the course ofillegal transportation or trade;

i. Tires or tubes except for loss directlycaused by fire, windstorm or theft; or

j. Crane booms or derrick booms while suchbooms are being operated or used exceptfor loss directly caused by fire, lightning,windstorm, explosion or overturning of themachine of which it is a part.

3. Coverage Extension - Newly-Acquired Property

Coverage under this endorsement is extendedto include newly acquired equipment.

The most we will pay under this Extension is thelesser of:

a. 25% of the total limit of insurance shown inthe Declarations or Schedule forContractor’s Equipment; or

b. The actual cash value of the newly acquiredequipment.

of 2 Form SS 04 24 10 09

Coverage for each item of newly acquiredContractor’s Equipment will end when any of thefollowing first occurs:

(1) This policy expires or is canceled, or

(2) 45 days expire after purchase of thenewly acquired Contractor’s Equipment,or

(3) The value of the newly acquiredContractor’s Equipment is reported to us.

We will charge you additional premium forvalues reported from the date you obtainownership of the Contractor’s Equipment.


The most we will pay for loss in any one occurrenceis the smallest applicable Limit of Insurance shownin:

1. The Declarations;

2. The Schedule(s);

3. The Coverage Form; or

4. The Endorsements.

If we show a Maximum Limit of Insurance, that is themost we will pay for all loss in any one occurrenceto Covered Property insured under thisendorsement.

D. DEDUCTIBLE

We will adjust loss in any one occurrence under thisendorsement as a single loss. The only deductibleamount that applies under this coverage is the largerof:

1. $250; or

2. The amount shown in the Declarations orSchedule as a deductible applicable to thiscoverage.

E. ADDITIONAL CONDITIONS

1. Coverage Territory

a. We will pay for direct physical loss orphysical damage to Covered Property whileanywhere within the coverage territory,including while in transit.

2. Pair, Sets or Parts

a. Pair or Set. In case of loss to any part of apair or set we may:

(1) Repair or replace any part to restore thepair or set to its value before the loss; or

(2) Pay the difference between the value ofthe pair or set before and after the loss.

b. Parts. In case of loss to any part ofCovered Property consisting of severalparts when complete, we will only pay forthe value of the lost or damaged part.

3. Reinstatement of Limit After Loss

The Limit of Insurance will not be reduced bythe payment of any claim, except for total loss ofa scheduled item, in which event we will refundthe unearned premium on that item.

4. Valuation

The value of property insured under thisendorsement will be the least of the followingamounts:

a. The actual cash value of that property;

b. The cost of reasonably restoring thatproperty to its condition immediately beforeloss; or

c. The cost of replacing that property withsubstantially identical property.

In the event of loss, the value of property will bedetermined as of the time of loss.


Form SS 04 28 09 07 Page 1 of 7


MANUFACTURERS STRETCHThis endorsement modifies insurance provided under the following:

STANDARD PROPERTY COVERAGE FORMSPECIAL PROPERTY COVERAGE FORM

Except as otherwise stated in this endorsement, theterms and conditions of the policy apply to the insurancestated below.A. The following changes apply to the Standard

Property Coverage Form, Additional Coverages,A.4., or to the Special Property Coverage Form,Additional Coverages, A.5.:1. Accounts Receivable

The following Additional Coverage is added:a. We will pay up to $25,000 in any one

occurrence as a Limit of Insurance to applyat each "scheduled premises" to coverdirect physical loss of or physical damage toyour records of accounts receivable. ThisLimit of Insurance is in addition to any otherLimit of Insurance that may be provided bythis policy for this coverage.

b. We will pay up to $25,000 in any oneoccurrence as a Limit of Insurance to coverdirect physical loss of or physical damage toyour records of accounts receivable that arenot located at the "scheduled premises" orin transit. This Limit of Insurance is inaddition to any other Limit of Insurance thatmay be provided by this policy for thiscoverage.

This Additional Coverage is subject to theprovisions of the Accounts ReceivableCoverage, Form SS 04 39, with the exception ofthe Limit of Insurance provision contained in thatform. Accounts Receivable Coverage, FormSS 04 39 is made a part of this policy whetheror not Accounts Receivable coverage isindicated in the Declarations.

2. Brands and Labels

The following Additional Coverage is added:

In the event of covered physical loss or physicaldamage to merchandise that is branded or

labeled, we will take all or part of the physicallydamaged property at an agreed or appraisedvalue and we will pay for:a. Expenses you incur to:

(1) Stamp salvage on the merchandise or itscontainers, if the stamp will not physicallydamage the merchandise; or

(2) Remove the brands or labels, if doingso will not physically damage themerchandise. You must relabel themerchandise and its containers tocomply with the law.

b. Any reduction in the salvage value of thephysically damaged merchandise as theresult of the removal of the brand or label.

This Additional Coverage is included within theBusiness Personal Property Limit of Insurance.

3. Claim Expenses


In the event of covered loss or physical damagewe will pay up to $10,000 in any one occurrenceas an additional Limit of Insurance to coverreasonable expenses incurred by you at ourspecific request to assist us in:a. The investigation of a claim or suit; orb. The determination of the amount of loss,

such as taking inventory, or auditingbusiness records.

4. Computer Fraud


We will pay up to $5,000 in any one occurrence forphysical loss of or physical damage to "money","securities", and other property having intrinsicvalue resulting directly from computer fraud.Computer fraud means any act of stealing propertyfollowing and directly related to the use of anycomputer to fraudulently cause a transfer of that

of 7 Form SS 04 28 09 07

property from inside your premises or from abanking institution or similar safe depository, to aperson (other than a "messenger") outside thosepremises or to a place outside those premises.

This Limit of Insurance is in addition to any otherLimit of Insurance that may be provided by thispolicy for this coverage.

5. Computers and Media


We will pay up to $25,000 in any oneoccurrence as a Limit of Insurance to applyanywhere in the Coverage Territory to coverdirect physical loss of or physical damage toyour computer systems. This Limit of Insuranceis in addition to any other Limit of Insurance thatmay be provided by this policy for this coverage.

This Additional Coverage is subject to theprovisions of Computers and Media, FormSS 04 41, with the exception of the Limit ofInsurance provision contained in that form.Computers and Media, Form SS 04 41 is madea part of this policy whether or not Computersand Media coverage is indicated in theDeclarations.

6. Contract Penalty


We will pay up to $1,000 as a Limit of Insuranceto cover contract penalties you are assesseddue to your failure to complete a project withinthe time required as stipulated by contract if thefailure to complete the project was caused by orresulted from a Covered Cause of Loss toCovered Property.This Limit of Insurance is in addition to any otherLimit of Insurance that may be provided by thispolicy for this coverage.

7. Debris Removal


In Limits of Insurance, C.4.b., the additional limitof insurance for the Debris Removal AdditionalCoverage is increased to $25,000 in any oneoccurrence.


8. Employee Dishonesty (including ERISA)


We will pay up to $10,000 in any oneoccurrence as a Limit of Insurance to cover lossfrom employee dishonesty. This includesERISA coverage. This Limit of Insurance is inaddition to any other Limit of Insurance that maybe provided by this policy for this coverage.

This Additional Coverage is subject to theprovisions of the Employee DishonestyCoverage, Form SS 04 42, with the exception ofthe Limit of Insurance provision contained in thatform. Employee Dishonesty Coverage, FormSS 04 42 is made a part of this policy whetheror not Employee Dishonesty Coverage isindicated in the Declarations.

9. Fine Arts


We will pay up to $10,000 in any oneoccurrence as a Limit of Insurance at each"scheduled premises" to apply to Fine Arts. ThisLimit of Insurance is in addition to any otherLimit of Insurance that may be provided by thispolicy for this coverage.

This Additional Coverage is subject to theprovisions of Fine Arts Coverage Form, FormSS 04 22, with the exception of the following:

a. The requirement contained underParagraph A.1., Under A. Coverage, to listand describe Fine Arts in the Declarationsor Shedule is deleted when Fine Arts arecovered under this Stretch endorsement;and

b. The Limit of Insurance provision does notapply.

c. Paragraph D.1. Valuation is deleted andreplaced by the following:

The value of Fine Arts will be the marketvalue at the time of physical loss or physicaldamage.

Fine Arts Coverage, Form SS 04 22 is made apart of this policy whether or not Fine ArtsCoverage is indicated in the Declarations.

10. Forgery


We will pay up to $10,000 in any oneoccurrence as a Limit of Insurance to cover lossfrom forgery of covered instruments, moneyorders, credit cards, and counterfeit money.

This Additional Coverage is subject to theprovisions of Forgery Coverage, FormSS 04 86, with the exception of the Limit ofInsurance provision contained in that form.Forgery Coverage, Form SS 04 86 is made apart of this policy, whether or not ForgeryCoverage is indicated in the Declarations.


Form SS 04 28 09 07 Page 3 of 7

11. Laptop Computers - Worldwide Coverage


We will pay up to $5,000 in any one occurrenceas a Limit of Insurance to apply to laptop,palmtop and similar portable computerequipment personal digital assistants (PDAs),and accessories anywhere in the world,including while in transit. This Limit of Insuranceis in addition to any other Limit of Insurance thatmay be provided by this policy for this coverage.

Limitation: We will not pay for direct physicalloss or physical damage caused by, resultingfrom, arising out of the theft of this propertywhich in transit as checked baggage.

This Additional Coverage is subject to theprovisions of Computers and Media, Form SS04 41, with the exception of the Limit ofInsurance provision contained in that form.Computers and Media, Form SS 04 41 is madea part of this policy whether or not Computersand Media coverage is indicated in theDeclarations.

12. Off-Premises Utility Services - Direct Damage


We will pay up to $10,000 in any oneoccurrence as a Limit of Insurance to apply ateach "scheduled premises" to cover directphysical loss of or physical damage to CoveredProperty caused by or resulting from theinterruption of utility services. This Limit ofInsurance is in addition to any other Limit ofInsurance that may be provided by this policy forthis coverage.

This Additional Coverage is subject to theprovisions of Off-Premises Utility Services -Direct Damage, Form SS 40 18, with theexception of the Utility Services Limit ofInsurance contained in that form. Off-PremisesUtility Services – Direct Damage, FormSS 40 18 is made a part of this policy, whetheror not Off-Premises Utility Services – DirectDamage coverage is indicated in theDeclarations.

13. Outdoor Signs

The following Additional Coverage is added andsupersedes any other coverage for signs in thispolicy:

We will pay up to full value of outdoor signs ateach "scheduled premises" to cover directphysical loss of or physical damage to outdoorsigns.

This Additional Coverage is subject to theprovisions of Outdoor Signs, Form SS 04 44,with the exception of the Limit of Insuranceprovision and paragraph E. of that form.

Outdoor Signs, Form SS 04 44 is made a part ofthis policy whether or not Outdoor Signscoverage is indicated in the Declarations.

This Additional Coverage is in addition to anyrecoverable Limits of Insurance applicable toBuilding or Business Personal Property.

14. Pairs or Sets


If pairs or sets of stock are damaged by aCovered Cause of Loss, we will pay anyreduction in value of the undamaged parts ofsuch damaged pairs or sets.

As used in this Additional Coverage, the termstock means merchandise held in storage or forsale, raw materials, and goods in-process orfinished.

This coverage is included within the BusinessPersonal Property Limit of Insurance.

15. Personal Property of Others


We will pay up to $25,000 in any oneoccurrence as a Limit of Insurance at each"scheduled premises" to apply to personalproperty of others that is in your care, custody orcontrol. This Limit of Insurance is in addition toany other Limit of Insurance that may beprovided by this policy for this coverage.

This Additional Coverage is subject to theprovisions of Personal Property of Others, FormSS 04 45, with the exception of the statementconcerning Limit of Insurance applicable toPersonal Property of Others shown in theDeclarations, contained in that form. PersonalProperty of Others, Form SS 04 45 is made apart of this policy whether or not PersonalProperty of Others coverage is indicated in theDeclarations.

16. Property at Other Premises


We will pay up to $10,000 in any oneoccurrence to extend coverage for BusinessPersonal Property at any premises notdescribed in the Declarations.

This includes property that you have sold underan installation agreement and your responsibilitycontinues until the property is accepted by thecustomer.

This Extension does not apply to:

a. Property in the care, custody or control ofyour salespersons;

b. Property at any fair or exhibition;

of 7 Form SS 04 28 09 07

c. Property in transit; or

d. Property temporarily stored at any premisesnot described in the Declarations.


17. Salespersons' Samples


We will pay up to $50,000 in any oneoccurrence as an additional Limit of Insuranceto extend Business Personal Property to cover:

a. Samples of your stock in trade (includingcontainers); and

b. Similar property of others;

but only while such property is in:

a. Your custody while acting as a salesrepresentatives; or

b. In the custody of your sales representativeor agents.


18. Sewer and Drain Back Up


We will pay for direct physical loss or physicaldamage to Covered Property solely caused bywater that backs up from a sewer or drain.

This coverage is included within the CoveredProperty Limits of Insurance.

THIS IS NOT FLOOD INSURANCE

We will not pay for water or other materials thatback up from any sewer or drain when it iscaused by any flood. This applies regardless ofthe proximity of the flood to Covered Property.Flood includes the accumulation of surfacewater, waves, tides, tidal waves, overflow ofstreams or other bodies of water, or their spray,all whether driven by wind or not that enters thesewer or drain system.

19. Sump Overflow or Sump Pump Failure


The maximum we will pay in any oneoccurrence is $15,000 for any loss, includingBusiness Income or Extra Expense, resultingfrom physical loss or physical damage toCovered Property that is caused by or resultingfrom water that overflows due to the failure of asump pump, sump pump well, or any other typeof system designed to remove subsurface waterfrom the foundation area if the failure is directly

or indirectly the result of a Covered Cause ofLoss. Failure means an abrupt cessation ofnormal functioning. This Limit of Insurance isthe maximum we will pay regardless of anyother coverage provided under this policy.

This Additional Coverage is subject to the termsand conditions of this policy with the exceptionof:

a. Paragraph B.1.f., Power Failure, of theStandard Property Coverage Form andParagraph B.1.d., Power Failure, of theSpecial Property Coverage Form; and

b. Paragraph B.1.h.(4), Water, of the StandardProperty Coverage Form and ParagraphB.1.f.(4), Water, of the Special PropertyCoverage Form.

THIS IS NOT FLOOD INSURANCE

We will not pay for water or other materials thatoverflow from a sump when the overflow iscaused by any flood. This applies regardless ofthe proximity of the flood to Covered Property.Flood includes the accumulation of surfacewater, waves, tides, tidal waves, overflow ofstreams or other bodies of water, or their spray,all whether driven by wind or not that enters thesewer or drain system.

20. Temperature Change


We will pay up to $10,000 in any oneoccurrence as a Limit of Insurance to apply ateach "scheduled premises" to cover directphysical loss of or physical damage toperishable stock caused by or resulting from achange of temperature or contamination by arefrigerant.


This Additional Coverage is subject to theprovisions of the Temperature ChangeCoverage, Form SS 04 46, with the exception ofthe Limit of Insurance provision contained in thatform. Temperature Change, Form SS 04 46 ismade a part of this policy whether or notTemperature Change coverage is indicated inthe Declarations.

21. Tenant Building and Business PersonalProperty Coverage - Required by Lease


The maximum we will pay in any oneoccurrence is $20,000 as a Limit of Insurance toapply to direct physical loss of or physicaldamage to Building and Business PersonalProperty for which you have a contractual

Form SS 04 28 09 07 Page 5 of 7

responsibility to insure. This includes buildingfixtures, machinery and equipment.

22. Transit Property in the Care of Carriers forHire


We will pay up to $10,000 in any oneoccurrence as a Limit of Insurance to apply todirect physical loss of or physical damage toproperty while in transit at your risk. This Limit ofInsurance is in addition to any other Limit ofInsurance that may be provided by this policy forthis coverage.

This Additional Coverage is subject to theprovisions of Transit Property in the Care ofCarriers for Hire, Form SS 04 30, with theexception of the Limit of Insurance provisioncontained in that form. Transit Property in theCare of Carriers for Hire, Form SS 04 30 ismade a part of this policy whether or not TransitProperty in the Care of Carriers for Hire isindicated in the Declarations.

23. Unauthorized Business Card Use


The maximum we will pay in any oneoccurrence is $2,500 as a Limit of Insurance tocover loss resulting from the theft orunauthorized use of your Business Credit, Debitor Charge Cards, including the reasonable legalexpenses you incur.

The Business Credit, Debit or Charge Cardsmust be issued to you or registered in yourname or the business name and be used solelyfor business purposes.

Limitation. We will not pay for the theft orunauthorized use of Business Credit, Debit orCharge Cards entrusted to others or youremployees.

24. Valuable Papers and Records


a. We will pay up to $25,000 in any oneoccurrence as a Limit of Insurance to applyat each "scheduled premises" to coverdirect physical loss of or physical damage toyour valuable papers and records. ThisLimit of Insurance is in addition to any otherLimit of Insurance that may be provided bythis policy for this coverage.

b. We will pay up to $25,000 in any oneoccurrence as a Limit of Insurance to coverdirect physical loss of or physical damage toyour valuable papers and records that arenot located at the "scheduled premises" orin transit. This Limit of Insurance is in

addition to any other Limit of Insurance thatmay be provided by this policy for thiscoverage.

This Additional Coverage is subject to theprovisions of the Valuable Papers and RecordsCoverage, Form SS 04 47, with the exception ofthe Limit of Insurance provision contained in thatform. Valuable Papers and Records Coverage,Form SS 04 47 is made a part of this policywhether or not Valuable Papers and Recordscoverage is indicated in the Declarations.

B. The following changes apply to the StandardProperty Coverage Form, Coverage Extensions,A.5., or to the Special Property Coverage Form,Coverage Extensions, A.6.. The Limits of Insurancestated in the paragraphs below replace the Limits ofInsurance stated in the Standard Property CoverageForm or the Special Property Coverage Form for thecoverages provided under this section. Except asotherwise stated, any other Limit of Insurancepurchased under this policy as an option for thefollowing coverages is in addition to the Limit ofInsurance stated below:

1. Newly Acquired or Constructed Property

The following changes are made to NewlyAcquired or Constructed Property:

a. Building

(1) The most we will pay in any oneoccurrence in subparagraph (1) isincreased from $500,000 to $1,000,000at each premises.

(2) The Limit of Insurance stated above isthe maximum Limit of Insuranceavailable for this coverage under thispolicy.

b. Business Personal Property

(1) The most we will pay in any oneoccurrence in subparagraph (2) isincreased from $250,000 to $500,000 ateach premises.


c. Business Income and Extra Expense

(1) If Business Income or Extra Expenseare provided under this policy, the mostwe will pay in any one occurrence insubparagraph (3) is increased from$50,000 to $500,000 in any oneoccurrence at each premises.

of 7 Form SS 04 28 09 07


2. Outdoor Property

In the Outdoor Property Coverage Extension,the most we will pay in any one occurrence isincreased to $20,000, but not more than $1,000for any one tree, shrub or plant.

3. Personal Effects

In the Personal Effects Coverage Extension, themost we will pay in any one occurrence isincreased from $10,000 to $25,000 at each"scheduled premises."

The Limit of Insurance stated above is themaximum Limit of Insurance available for thiscoverage under this policy.

4. Property Off-Premises

In the Personal Property Off-PremisesCoverage Extension, the most we will pay in anyone occurrence in subparagraph A.6.h.(2) isincreased from $2,500 to $25,000.

C. The following changes apply only if BusinessIncome and Extra Expenses are covered under thispolicy. These changes apply to the StandardProperty Coverage Form, Additional Coverages,A.4., or to the Special Property Coverage Form,Additional Coverages, A.5.:

1. Business Income Extension for Off-PremisesUtility Services


We will pay up to $25,000 in any oneoccurrence as a Limit of Insurance to apply ateach "scheduled premises" to cover loss ofBusiness Income and Extra Expense caused byor resulting from the interruption of utilityservices. This Limit of Insurance is in additionto any other Limit of Insurance that may beprovided by this policy for this coverage.

This Additional Coverage is subject to theprovisions of Business Income Extension forOff-Premises Utility Services, Form SS 04 19,with the exception of the Limit of Insuranceprovision contained in that form. BusinessIncome Extension for Off-Premises UtilityServices, Form SS 04 19 is made a part of thispolicy whether or not Business IncomeExtension for Off-Premises Utility Servicescoverage is indicated in the Declarations.

2. Business Income Extension for Web Sites


We will pay up to $10,000 in any one occurrence

as a Limit of Insurance to cover loss of BusinessIncome you sustain due to the necessaryinterruption of business operations caused by orresulting from direct physical loss of or physicaldamage to your Web Site operation at thepremises of a vendor acting as your serviceprovider. This Limit of Insurance is in addition toany other Limit of Insurance that may beprovided by this policy for this coverage.

Such interruption must be caused by or resultfrom a Covered Cause of Loss.

a. Coverage Time Period

We will only pay for loss you sustain duringthe 7-day period immediately following thefirst 12 hours after the Covered Cause ofLoss.

b. Conditions

This coverage applies only:

(1) If you have a back-up copy of your WebPage stored at a location other than thesite of the Web Site vendor.

(2) To the extent that Business Income ispermanently lost.

3. Business Income from Dependent Properties


We will pay up to $25,000 in any oneoccurrence as a Limit of Insurance to apply toloss of Business Income and Extra Expense dueto direct physical damage at property of othersyou depend on. This Limit of Insurance is inaddition to any other Limit shown in theDeclarations for specific Dependent Properties.

This additional coverage is subject to theprovisions of Business Income from DependentProperties, Form SS 04 78, with the exceptionof the Limit of Insurance provision contained inthat form. Business Income from DependentProperties, Form SS 04 78 is made a part of thispolicy whether or not Business Income fromDependent Properties coverage is indicated inthe Declarations.

There is no requirement for DependentProperties to be scheduled for the coveragesprovided by this Stretch endorsement to apply.

4. Extended Business Income

In the Extended Business Income AdditionalCoverage, paragraph 4.j.(1)(b)(ii) of theStandard Property Coverage Form andparagraph 5.r.(1)(b)(ii) of the Special PropertyCoverage Form are amended to read as follows:

(b) 60 consecutive days after the datedetermined in (a) above.

Form SS 04 28 09 07 Page 7 of 7

D. The following change applies only if your policyincludes the Special Property Coverage Form.

1. Precious Metal Theft Payment Changes

The following changes apply to LimitationA.4.c.:

a. In subparagraph (2), the most we will pay inany one occurrence for physical loss orphysical damage by theft of bullion, gold,silver, platinum and other precious alloysand metals is increased to $10,000 in anyone occurrence.

b. In subparagraph (3), the most we will pay inany one occurrence for physical loss orphysical damage by theft of patterns, dies,molds, and forms, is changed to be includedwithin the Business Personal Property Limitof Insurance.

E. The following changes apply to Paragraph E.5.d.,Loss Payment, of the Standard Property CoverageForm and the Special Property Coverage Form:

1. Valuation Changes

The following are added to the Loss PaymentProperty Loss Condition E.5.d.:

(10)Commodity Stock

We will determine the value of merchandiseand raw materials that are bought and soldat an established market exchange. We willdetermine the value at:

(a) The posted market price as of the timeand place of loss;

(b) Less discounts and expenses youotherwise would have had.

(11)"Finished Stock"

We will determine the value of goods thatyou have manufactured at the selling priceless discounts and expenses you otherwisewould have had.

(12)Mercantile Stock - Sold

We will determine the value of goods youhave sold but not delivered at the sellingprice less discounts and expenses youotherwise would have had.



TRANSIT COVERAGE – PROPERTY IN THE CARE OFCARRIERS FOR HIRE



Except as otherwise stated in this endorsement theterms and conditions of the policy and of the SpecialProperty Coverage Form apply to the insurance statedbelow.

A. With respect to this Transit Coverage – Property inthe Care of Carriers for Hire only, the followingchanges are made to the Special Property CoverageForm:

1. Under A.4. Limitations, subparagraph c.(3)which limits coverage for patterns, dies, moldsand forms, is deleted.

2. Under B. Exclusions

a. Exclusions 1.a. (Earth Movement) and 1.f.(Water) do not apply to property in transit.

b. Exclusions 2.e. (Dishonesty) and 2.g.(Exposed Property) do not apply to propertyin custody of a carrier for hire.

c. Exclusion 2.f. (False Pretense) does notapply to loss or damage caused by yourgood faith acceptance of false bills of ladingor shipping receipts.

d. The following Exclusion is added:

We will not pay for physical loss or physicaldamage caused by or resulting from poor orinsufficient packaging or packing.

B. Transit Coverage – Property in the Care ofCarriers for Hire

1. The insurance that applies to your BusinessPersonal Property and Personal Property ofOthers is extended to apply to shipments of thatproperty while in transit at your risk, by motorvehicle, railroad car or aircraft between pointswithin the Coverage Territory. This includesproperty you have sold and for which yourresponsibility continues until it is delivered.

2. The Transit Coverage – Property in the Care ofCarriers for Hire also applies to:

a. Expenses to Inspect, Repackage andReship Damaged Shipments

The necessary additional expenses you incurto inspect, repackage and reship CoveredProperty which is physically damaged as aresult of a Covered Cause of Loss.

b. Expenses to Protect Covered Propertyfrom Spoilage or Change in Temperature

The necessary additional expense you incurto temporarily store Covered Property in atemperature controlled environment in orderto avoid or minimize physical loss orphysical damage to such property fromspoilage or change in temperature. Suchtemporary storage must be made necessaryby the sudden and accidental breakdown ofheating or refrigeration unit(s) ontransporting conveyances.

This additional expense will not include:

(1) Expenses to repair or replace heating orrefrigeration unit(s);

(2) Costs or penalties due to detention ordelay of any vehicles, trailers,conveyances or containers; or

(3) Costs for additional wages, room, boardor meals.

c. F.O.B. Shipments

Outgoing shipments where the risk ofphysical loss or physical damage istransferred to the buyer when such propertyleaves your premises.

You must use all reasonable means tocollect the amount due you from the buyer

of 2 Form SS 04 30 07 05

before making a claim under this TransitCoverage. We will not make payment untilyou grant us the right of recovery againstthe buyer.

d. Loading and Unloading

Shipments during loading or unloading andwithin 500 feet of any transportingconveyance.

e. Return Shipments

Outgoing shipments which have beenrejected by the consignee or are notdeliverable, while:

(1) In due course of transit, being returnedto you; or

(2) Up to 10 days after delivery orattempted delivery awaiting returnshipment to you.

Payment under paragraphs a., b., c., d. ande. above will not increase the TransitCoverage Limit of Insurance.

C. Under this Transit Coverage – Property in theCare of Carriers for Hire, we will not pay for:

1. Property in the care, custody or control of yoursalespersons.

2. Mail shipments in the custody of the U.S. PostalService.

3. Property of Others for which you are responsibleas a:

a. Carrier for hire; or

b. Carloader, consolidator, broker, freightforwarder, shipping association, or otherarranger of transportation.

4. Property in or on a motor vehicle you own, leaseor operate.

D. Limit of Insurance

The Limit of Insurance shown in the Declarations forTransit Coverage – Property in the Care of Carriersfor Hire is the most we will pay for all physical lossor physical damage in any one occurrence toproperty insured under this endorsement.

E. Deductible

We will not pay for physical loss or physical damagein any one occurrence until the amount of physicalloss or physical damage exceeds $250. We willthen pay the amount of physical loss or physicaldamage in excess of $250 up to the applicable Limitof Insurance.

F. Additional Conditions

1. Valuation

Property Loss Condition E.5. is deleted andreplaced by the following:

a. Valuation

(1) Property You Own

The value of Covered Property will bethe amount of invoice plus accruedcharges, prepaid charges and chargessince shipment; or

(2) In the absence of an invoice, the valueof Covered Property will be its actualcash value, with proper deduction fordepreciation, at the point of destinationon the date of expected arrival.

b. Property of Others

The most we will pay for Covered Propertyowned by others is the lesser of:

(1) Your legal liability for direct physicalloss or physical damage to suchproperty; or

(2) What we would pay if you had ownedthe property.

2. Impairment of Rights of Recovery

We will not pay for physical loss or physicaldamage, if you impair our rights to recoverdamages from any carrier for hire. But you mayaccept from carriers for hire bills of lading,receipts or contracts of transportation whichcontain a limitation of value.



(Includes copyrighted material of ISO Properties, Inc., with its permission)

HIRED AUTO AND NON-OWNED AUTO



This coverage is subject to all provisions in theBUSINESS LIABILITY COVERAGE FORM notexpressly modified herein:

A. Amended Coverage:

Coverage is extended to "bodily injury" and"property damage" arising out of the use of a "hiredauto" and "non-owned auto".

B. Paragraph B. EXCLUSIONS is amended asfollows:

1. Exclusion g. Aircraft, Auto or Watercraft doesnot apply to a "hired auto" or a "non-ownedauto".

2. Exclusion e. Employers Liability does notapply to "bodily injury" to domestic "employees"not entitled to workers’ compensation benefitsor to liability assumed by the "insured" under an"insured contract".

3. Exclusion f. Pollution is replaced by thefollowing:

"Bodily injury" or "property damage" arising outof the actual, alleged or threatened discharge,dispersal, seepage, migration, release orescape of "pollutants":

a. That are, or that are contained in anyproperty that is:

(1) Being transported or towed by, handled,or handled for movement into, onto orfrom, the covered "auto";

(2) Otherwise in the course of transit by oron behalf of the "insured"; or

(3) Being stored, disposed of, treated orprocessed in or upon the covered"auto".

b. Before the "pollutants" or any property inwhich the "pollutants" are contained are

moved from the place where they areaccepted by the "insured" for movement intoor onto the covered "auto"; or

c. After the "pollutants" or any property inwhich the "pollutants" are contained aremoved from the covered "auto" to the placewhere they are finally delivered, disposed ofor abandoned by the "insured".

Paragraph a. above does not apply to fuels,lubricants, fluids, exhaust gases or othersimilar "pollutants" that are needed for orresult from the normal electrical, hydraulicor mechanical functioning of the covered"auto" or its parts, if:

(1) The "pollutants" escape, seep, migrate,or are discharged or released directlyfrom an "auto" part designed by itsmanufacturer to hold, store, receive, ordispose of such "pollutants"; and

(2) The "bodily injury" and "propertydamage" does not arise out of theoperation of any equipment listed inparagraphs 15.b. and 15.c. of thedefinition of "mobile equipment".

Paragraphs b. and c. above do not apply to"accidents" that occur away from premisesowned by or rented to an "insured" withrespect to "pollutants" not in or upon acovered "auto" if:

(1) The "pollutants" or any property inwhich the "pollutants" are contained areupset, overturned or damaged as aresult of the maintenance or use of acovered "auto"; and

of 3 Form SS 04 38 09 09

(2) The discharge, dispersal, seepage,migration, release or escape of the"pollutants" is caused directly by suchupset, overturn or damage as a result ofthe maintenance or use of a covered"auto".

4. With respect to this coverage, the followingadditional exclusions apply:

a. Fellow employee

Coverage does not apply to "bodily injury" toany fellow "employee" of the "insured"arising out of the operation of an "auto"owned by the "insured" in the course of thefellow "employee’s" employment.

b. Care, custody or control

Coverage does not apply to "propertydamage" involving property owned ortransported by the "insured" or in the"insured’s" care, custody or control.

C. With respect to "hired auto" and "non-owned auto"coverage, Paragraph C. WHO IS AN INSURED isdeleted and replaced by the following:

The following are "insureds":

a. You.

b. Your "employee" while using with yourpermission:

(1) An "auto" you hire or borrow; or

(2) An "auto" you don’t own, hire or borrow inyour business or personal affairs; or

(3) An "auto" hired or rented by your"employee" on your behalf and at yourdirection.

c. Anyone else while using a "hired auto" or "non-owned auto" with your permission except:

(1) The owner or anyone else from whom youhire or borrow an "auto".

(2) Someone using an auto while he or she isworking in a business of selling, servicing,repairing, parking or storing "autos" unlessthat business is yours.

(3) Anyone other than your "employees",partners (if you are a partnership), members(if you are a limited liability company), or alessee or borrower or any of their"employees", while moving property to orfrom an "auto".

(4) A partner (if you are a partnership), or amember (if you are a limited liability

company) for an "auto" owned by him or heror a member of his or her household.

d. Anyone liable for the conduct of an "insured"described above but only to the extent of thatliability.

D. With respect to the operation of a "hired auto" and"non-owned auto", the following additionalconditions apply:

1. OTHER INSURANCE

a. Except for any liability assumed under an"insured contract" the insurance provided bythis Coverage Form is excess over anyother collectible insurance.

However, if your business is the selling,servicing, repairing, parking or storage of"autos", the insurance provided by thisendorsement is primary when covered"bodily injury" or "property damage" arisesout of the operation of a customer’s "auto"by you or your "employee".

b. When this Coverage Form and any otherCoverage Form or policy covers on thesame basis, either excess or primary, wewill pay only our share. Our share is theproportion that the Limit of Insurance of ourCoverage Form bears to the total of thelimits of all the Coverage Forms and policiescovering on the same basis.

2. TWO OR MORE COVERAGE FORMS ORPOLICIES ISSUED BY US

If the Coverage Form and any other CoverageForm or policy issued to you by us or anycompany affiliated with us apply to the same"accident", the aggregate maximum Limit ofInsurance under all the Coverage Forms orpolicies shall not exceed the highest applicableLimit of Insurance under any one CoverageForm or policy. This condition does not apply toany Coverage Form or policy issued by us or anaffiliated company specifically to apply asexcess insurance over this Coverage Form.

E. The following definitions are added:

G. LIABILITY AND MEDICAL EXPENSESDEFINITIONS:

1. "Hired auto" means any "auto" you lease,hire, rent or borrow. This does not includeany auto you lease, hire, rent or borrowfrom any of your "employees", your partners(if you are a partnership), members (if youare a limited liability company),

Form SS 04 38 09 09 Page 3 of 3

or your "executive officers" or members oftheir households.

This does not include a long-term leased"auto" that you insure as an owned "auto"under any other auto liability insurancepolicy or a temporary substitute for an"auto" you own that is out of servicebecause of its breakdown, repair, servicingor destruction.

2. "Non-owned auto " means any "auto" youdo not own, lease, hire, rent or borrowwhich is used in connection with yourbusiness. This includes:

a. "Autos" owned by your "employees" yourpartners (if you are a partnership),members (if you are a limited liabilitycompany), or your "executive officers",or members of their households, butonly while used in your business or yourpersonal affairs.

b. Customer’s "auto" that is in your care,custody or control for service.



ACCOUNTS RECEIVABLE



This coverage applies only when it is indicated in theDeclarations. The provisions of this policy apply to thecoverage stated in this endorsement, except asindicated below.

A. When shown in the Declarations as applicable, theLimit of Insurance stated in paragraph A.5.a.(1),Accounts Receivable, in the Standard PropertyCoverage Form and A.6.a.(1), AccountsReceivable, in the Special Property Coverage Formis replaced by the Limit of Insurance for AccountsReceivable shown in the Declarations. All otherterms and conditions of the Accounts ReceivableCoverage Extension apply to this OptionalCoverage.

B. Limit of Insurance

The most we will pay under this coverage extensionin any one occurrence is the Limit of Insuranceshown in the Declarations for Accounts Receivable.

C. Deductible

We will not pay for loss in any one occurrenceunless the amount of loss exceeds the policydeductible stated in the Declarations. We will thenpay the amount of loss in excess of the Deductible,up to the Limit of Insurance.

D. Additional Conditions

(1) If you cannot accurately establish the value ofaccounts receivable outstanding as of the timeof direct physical loss or physical damage thefollowing method will be used:

(a) Determine the total of the average monthlyvalue of accounts receivable for the 12months immediately preceding the month inwhich the direct physical loss or physicaldamage occurred; and

(b) Adjust that total for any normal fluctuationsin the value of accounts receivable for themonth in which the direct physical loss orphysical damage occurred or for anydemonstrated variance from the average forthat month.

(2) The following will be deducted from the totalvalue of accounts receivable, however thatvalue is established:

(a) The value of the accounts for which there isno loss or damage;

(b) The value of the accounts that you are ableto reestablish or collect;

(c) A value to allow for probable bad debts thatyou are normally unable to collect; and

(d) All unearned interest and service charges.



COMPUTERS AND MEDIA



The provisions of this policy apply to the coveragestated in this endorsement, except as indicated below.

A. Computer Equipment, Electronic Data andSoftware

1. Coverage

We will pay for direct physical loss of orphysical damage, to "computer equipment"and the cost to research, replace or restorephysically lost or physically damaged"electronic data" and "software" subject to theLimit of Insurance shown in the Declarationsfor Computers and Media while anywherewithin the coverage territory, and while intransit, but only if:

a. Owned by you; or

b. Owned by others but in your care, custodyand control regardless of whether you useit for personal or business needs.

2. Property Not Covered"Computer Equipment" as used in this optionalcoverage does not include:a. Source documents, other than manuals

purchased with hardware or "software";b. Worksheets and printouts;c. Property held for sale or lease;d. Property leased or rented to others; ore. "Money", deeds, notes, "securities" or

other financial instruments, including suchinstruments in electronic form.

3. Extended Causes of LossDirect physical loss or physical damage to your"computer equipment", "electronic data" or"software", or "computer equipment","electronic data" or "software" of others in yourcare, custody or control is extended to includethe following:a. Electromagnetic injury caused by:

(1) Blackout or brownout;

(2) Power Failure;(3) Airport security check, or radio or

telephone line interference; or(4) Electromagnetic disturbance outside

the "computer system".b. Head crash, meaning physical damage to

disks, tapes or hardware caused by acontact of electromagnetic heads (whichread or write information) with such disksor tapes;

c. Damage caused by a "computer virus";and

d. Theft of "computer equipment" away fromthe "scheduled premises". Theft meansan act of stealing or an attempt to steal.Theft includes loss of property from aknown place when it is likely that theproperty has been stolen.

4. ExclusionWe will not pay to research, replace or restorephysically lost or physically damaged"electronic data" or "software" which islicensed, leased or rented to others.

5. DeductibleWe will not pay for loss or damage in any oneoccurrence to "computer equipment" until theamount of loss or damage exceeds $250,unless a separate deductible is stated in theDeclarations for Computers and MediaCoverage.

B. Additional Coverage1. Business Income and Extra Expense

CoverageIf Business Income and Extra ExpenseCoverage is included in this policy then thefollowing applies.a. Coverage

(1) Coverage under this endorsementapplies to the following Additional

of 3 Form SS 04 41 03 18

Coverages and Coverage Extensionsin the Standard or Special PropertyCoverage Form with respect to"computer equipment", "electronicdata" and "software":(a) Business Income;(b) Extra Expense;(c) Civil Authority;(d) Extended Business Income; and(e) Newly Acquired or Constructed

Property Coverage.(2) Coverage under this endorsement

does not apply to any other AdditionalCoverage or Coverage Extension.

b. Coverage LimitationsThe following limitations apply only if thephysical loss or physical damage is adirect result of the Extended Causes ofLoss for "computer equipment", "software"and "electronic data" as indicated below.(1) Limit of Insurance

This Additional Coverage is includedin the Limit of Insurance forComputers and Media shown in theDeclarations when the actual loss ofbusiness income and extra expenseyou incur due to the necessarysuspension (slowdown or cessation) ofyour operations is a result of:(a) A cause of loss included in A.3.a.,

b. or c., Extended Causes ofLoss, of this endorsement; or

(b) Physical damage or physical lossto "computer equipment","electronic data", and "software"that was away from the scheduledpremises at the time of loss.

This is not an additional limit ofinsurance.

(2) Waiting PeriodWe will not pay for any coveredBusiness Income loss you sustainunder this provision due to physical lossor physical damage to "electronic data",or "software" caused by a "computervirus" which results in the necessarysuspension (slowdown or cessation) ofyour business described in theDeclarations during the first 12 hoursthat immediately follow the start of suchsuspension. This Waiting Periodapplies independent of the deductibleapplicable to "Computer Equipment".

2. Equipment Breakdown CoverageThe Additional Coverage for EquipmentBreakdown applies to "computer equipment",

"electronic data", and "software" when thisendorsement is attached to the SpecialProperty Coverage Form and EquipmentBreakdown Additional Coverage is included onthe policy.

C. Exclusion of Certain Computer Related LossesThe provisions of this endorsement do not overrideor in any way affect the application of the Exclusionof Certain Computer Related Losses if suchexclusion is endorsed to or otherwise made a partof this policy. That exclusion addresses theinability of a "computer system" to correctlyrecognize process, distinguish, interpret or acceptone or more dates or times.

D. Exclusions1. Section B. Exclusions, of the Standard or

Special Property Coverage Form do not applyto coverage provided by this endorsement,except for the exclusions of:a. Earth Movement;b. Governmental Action;c. Nuclear Hazard;d. War and Military Action; ande. Water.

2. Additional ExclusionsWe will not pay for loss or damage caused byor resulting from:a. Input, programming or processing errors;b. Mechanical breakdown or failure, however

head crash will not be considered as amechanical breakdown or failure.This exclusion does not apply to"computer equipment", "electronic data",and "software" when this endorsement isattached to the Special Property CoverageForm and Equipment BreakdownAdditional Coverage is included on thepolicy;

c. Faulty construction, materials orworkmanship;

d. Error, omission or deficiency in design;e. Rust, corrosion, deterioration, hidden or

latent defect or any quality in property thatcauses it to damage or destroy itself;

f. Dryness or dampness of atmosphere;changes in or extremes of temperature;

g. Wear and tear, marring or scratching;h. Insects, birds, rodents, or other animals;i. Obsolescence;j. Dishonest or criminal acts by you, any of

your partners, employees, trustees,authorized representatives or anyone towhom you entrust the property for anypurpose, whether acting alone or incollusion with others;

Form SS 04 41 03 18 Page 3 of 3

k. Unexplained disappearance, however wewill cover theft of "computer equipment" asprovided in provision A.3.d.;

l. Unlawful trade, or seizure by orders ofgovernmental authority;

m. Delay or loss of market; and

n. Theft of laptop, palmtop or similar portableproperty while in transit as checkedbaggage.

E. Limit of Insurance

The most we will pay for physical loss or physicaldamage in any one occurrence is the Limit ofInsurance for Computers and Media shown in theDeclarations.

F. Loss Payment

This Loss Payment condition is applicable to the"computer equipment", "electronic data", and"software" coverage provided by this endorsement.We will determine the value of Covered Propertyas follows:

1. ''Computers,'' ''peripheral devices", ''media'',and manuals at the full cost to repair orreplace the property subject to the Limit ofInsurance. However, we will not pay more forphysical loss or physical damage on areplacement cost basis than the lesser of andthe following:

a. The amount necessary to replace the itemwith similar property possessing theminimum characteristics necessary toperform the same functions whenreplacement with identical property is notpossible or practical.

b. The amount necessary to repair or replacethe item with one substantially identical tothe physically lost or physically damageditem. In the event of a covered total lossto one or more items, we will allow up to20% over the current replacement cost asdescribed in this provision, as an OptionalUpgrade Allowance for the purchase of new

property with upgraded processing orperformance characteristics. This OptionalUpgrade Allowance will, at our option, bepayable after you have purchased thereplacement property and have provided uswith written proof of such purchases; or

c. If the item is not repaired or replaced, wewill not pay more than the actual cashvalue of the item at the time of physicalloss or physical damage. If you elect thisoption, you have the right to make furtherclaim within 180 days after loss for anyadditional payment on a replacement costbasis.

2. In the event of physical loss or physicaldamage to "electronic data" or "software", wewill pay the reasonable amount you actuallyspend to reproduce, restore, or replace thephysically lost or physically damaged"electronic data" or "software". This includesthe cost of computer consultation services forrestoration and the cost of research toreconstruct lost or damaged information. Butwe will not pay more than the Limit ofInsurance for Computers and Media specifiedin the Declarations.

3. In the event of physical loss or physicaldamage to any part of "computer equipment","electronic data" or "software", we will pay onlywhat it would cost to replace, reproduce, orrestore the physically lost or physicallydamaged part.

G. Additional Definitions

1. "Computer Virus" means a program, which isintentionally created to cause damage ordisruption in the computer operations of aparty using or coming in contact in any waywith the program.

2. "Computer System" includes "computer","peripheral devices", "software", and"electronic data" necessary for the "computer"to function for its intended purpose.



EMPLOYEE DISHONESTY COVERAGE




A. COVERAGE

1. The following is added to Paragraph A.5.,Additional Coverages, of the Special PropertyCoverage Form:

Employee Dishonesty Coverage

(1) We will pay for loss of, and loss fromdamage to, Covered Property resultingdirectly from the Covered Causes ofLoss.

Covered Property, solely as used in thisAdditional Coverage, means "money","securities", and other tangible propertyof intrinsic value and not otherwiseexcluded.

Covered Causes of Loss meansdishonest acts committed by an"employee", except you, whetheridentified or not, acting alone or incollusion with other persons, with themanifest intent to:

(a) Cause you to sustain loss; and also

(b) Obtain financial benefit (other thansalaries, commissions, fees,bonuses, promotions, awards, profitsharing or pensions or otheremployee benefits earned in thenormal course of employment) for:

(i) That "employee"; or

(ii) Any person or organizationintended by the "employee" toreceive that benefit.

(2) Employee Dishonesty AdditionalCoverages:

(a) We will pay for loss of CoveredProperty arising out of a Covered

Cause of Loss caused by any"employee" while temporarilyoutside the Coverage Territory for aperiod of not more than 90 days.

(b) We will pay for any loss of CoveredProperty arising out of a CoveredCause of Loss caused by your"employee" while at the premises ofyour client or customer.

Any claim for loss sustained by anyclient or customer and covered bythis policy may only be made by youin your Proof of Loss. No third partyhas a direct right against thisinsurance and no third party maymake a direct claim against us asthe writer of your insurance.

(3) Coverage under the EmployeeRetirement Income Security Act of1974, as amended ("ERISA")

(a) We will pay for loss of, and lossfrom damage to, Covered Propertyresulting directly from the CoveredCauses of Loss.

Covered Property, solely asapplicable to ERISA coverage,means the funds or other propertyof any employee pension benefitplan or employee welfare benefitplan that:(i) Is subject to (and not exempt

from) the bond requirement setforth in Section 412 of ERISA,and

(ii) You establish and maintain foryour employees (a "Plan")

and which is not otherwiseexcluded.Covered Causes of Loss, solely asapplicable to ERISA coverage,

of 3 Form SS 04 42 03 17

means an act of fraud or dishonestycommitted by an "employee",except you, whether identified ornot, acting alone or in collusion withother persons, that results in a lossto a Plan of funds or other propertywhich is used or may be used topay benefits under the Plan."Covered Causes of Loss" does notinclude investment losses or anyother loss resulting from a breach offiduciary duty under ERISA or aprohibited transaction as defined byERISA and for which coverage isnot required by Section 412 ofERISA.

(b) Welfare and Pension Plan ERISACompliance

In compliance with certainprovisions of the ERISA:

(i) For the purposes of thisinsurance, the Plans youestablish and maintain for thebenefit of your employees shallbe Named Insureds under thisEmployee DishonestyCoverage.

(ii) ''Employee'' includes anynatural person you employ andany owner, officer, trustee ordirector of your company who"handles" the funds or otherproperty of the Plan (as definedin 29 C.F.R. 2580.412-6)including, but not limited to, thePlan Administrator. "Employee"does not include any third party(including but not limited to abroker, independent contractor,record keeper, payroll provider,trustee or other fiduciary) whoprovides services to you or to aPlan.

(iii) If any Plan is insured jointly withany other entity under thisinsurance, you or the PlanAdministrator must select aLimit of Insurance under thisEmployee Dishonesty CoverageForm that is sufficient to providean amount of insurance foreach Plan that is at least equalto that required if each Planwere separately insured.

(iv) If the insured first named in theDeclarations is an entity otherthan a Plan, any payment wemake to that insured for losssustained by any Plan must be

paid promptly into such plan forthe use and benefit of thePlan(s) sustaining the loss.

(v) If two or more Plans are insuredunder this insurance, anypayment we make for losseither sustained by two or moreplans, or of commingled fundsor other property of two or morePlans that arises out of oneoccurrence, is to be shared byeach Plan sustaining loss in theproportion that the amount ofinsurance required for eachsuch Plan under ERISAprovisions bears to the total ofthose amounts.

(4) Theft Limitation Exception

Limitation A.4.c., of the Special PropertyCoverage Form does not apply tocoverage provided by this endorsement.


(a) Employee Terminated UnderPrior Insurance

We will not pay for loss caused byany "employee" of yours, orpredecessor in interest of yours, forwhom similar prior insurance hasbeen terminated and not reinstatedsince the last such termination.

(b) Insurance Operations

We will not pay for direct or indirectloss resulting from contractual orextra-contractual liability sustainedby you in connection with theissuance of contracts or purportedcontracts of insurance, indemnity orsuretyship.

(c) Inventory Shortages

We will not pay loss, or that part ofany loss, the proof of which as to itsexistence or amount is dependentupon:

(i) An inventory computation; or

(ii) A profit and loss computation.

(d) Partners

We will pay only for loss caused byany partner or member of a limitedliability corporation that is in excessof the sum of:

(i) Any amounts you owe thatpartner or member; and

(ii) The value of that partner's ormember's ownership interestdetermined by the closing of

Form SS 04 42 03 17 Page 3 of 3

you organization's books on thedate of discovery of the loss byanyone in your organization notinvolved in the EmployeeDishonesty; and

(iii) Any applicable deductibleamount.

(e) Trading Loss

We will not pay for loss resultingdirectly or indirectly from trading,whether in your name or in agenuine or fictitious account if suchloss does not result from dishonestyor fraud.

(6) Additional Conditions

(a) Termination As To Any"Employee"

This insurance is terminated as toany "employee":

(i) Immediately upon discovery byyou, or any of your partners,officers or directors not incollusion with the "employee", ofany dishonest or fraudulent actcommitted by that "employee"whether before or afterbecoming employed by you; or

(ii) On the date specified in a noticemailed to you. That date will beat least 30 days after the date ofmailing.

The mailing of notice to you atthe last mailing address knownto us will be sufficient proof ofnotice. Delivery of notice is thesame as mailing.

(7) Limit of Insurance

The most we will pay for eachoccurrence of loss under this AdditionalCoverage is the Employee DishonestyLimit of Insurance stated in theDeclarations.

(8) Deductible

We will not pay for loss in any oneoccurrence unless the amount of lossexceeds the Deductible shownParagraph D.5. the Special PropertyCoverage Form, unless a separateDeductible for Employee Dishonestyapplies and is stated in theDeclarations. We will then pay theamount of the loss in excess of theDeductible, up to the Limit of Insurance.

No deductible applies to the coveragegranted in Paragraph A.1.(3) of thisendorsement.

(9) Occurrence Definition

As used in this Additional Coverage,occurrence means all loss caused by, orinvolving, one or more "employees",whether the result of a single act orseries of acts.


Form SS 04 44 07 05 Page 1 of 1


OUTDOOR SIGNS



This coverage applies only when it is indicated in theDeclarations. The provisions of this policy apply to thecoverage stated in this endorsement, except asindicated below.A. We will pay for direct physical loss of or physical

damage to all outdoor signs at the “scheduledpremises”:

(1) Owned by you; or

(2) Owned by others but in your care, custody andcontrol.

B. Paragraph A.3., Covered Causes of Loss, andSection B., Exclusions, do not apply, to this OptionalCoverage, except for:




C. Additional Exclusion

We will not pay for physical loss or physical damagecaused by or resulting from:

(1) Wear and tear;

(2) Hidden or latent defect;

(3) Rust;

(4) Corrosion; or

(5) Mechanical breakdown.

D. Limit of Insurance

The most we will pay for physical loss or physicaldamage in any one occurrence is the Limit ofInsurance for Outdoor Signs shown in theDeclarations.

E. The provisions of this Optional Coverage supersedeall other references to outdoor signs in this policy.


Form SS 04 45 07 05 Page 1 of 1





This coverage applies only when it is indicated in the Declarations. The provisions of this policy apply to the coveragestated in this endorsement, except as indicated below.

We will pay, on replacement cost basis, for direct physical loss or physical damage by a Covered Cause of Loss toPersonal Property of Others that is in your care, custody and control.

The most we will pay for direct physical loss or physical damage in any one occurrence is the Limit of Insuranceapplicable to Personal Property of Others shown in the Declarations.



TEMPERATURE CHANGE




A. We will pay for direct physical loss of or physicaldamage to ''perishable stock'' at the "scheduledpremises" caused by or resulting from:

1. A change in temperature or humidity resultingfrom:

(a) Mechanical breakdown or failure of:

(1) Stationary heating plants; or

(2) Refrigerating, cooling or humidity controlapparatus or equipment;

But only while such plants, equipment orapparatus are at the "scheduled premises".

(b) Complete or partial failure of electric power,either on or away from your "scheduledpremises". Such failure of power must bedue to conditions beyond your control; or

2. Contamination by a refrigerant.

B. SELLING PRICE

We will determine the value of finished "perishablestock" in the event of direct physical loss or physicaldamage at the selling price, as if no physical loss orphysical damage had occurred less discounts andexpenses you otherwise would have had.

C. We will not pay for direct physical loss of or physicaldamage to "perishable stock" located:

1. On buildings;

2. In the open; or

3. In vehicles, other than trailers used for storagelocated within 1000 feet of the "scheduled premises’.

D. EXCLUSIONS

1. The following exclusions under SECTION B -EXCLUSIONS are deleted:

(a) Ordinance or Law;

(b) Power Failure; and

(c) Mechanical Breakdown in the StandardProperty Coverage Form.

2. The following exclusions are added:

We will not pay for direct physical loss orphysical damage caused by or resulting from:

(a) The disconnecting of any of the followingsystems from the source of power:

(1) Refrigerating;

(2) Cooling; or

(3) Humidity control.

(b) The loss of electrical power caused by theshutting off of any switch or other deviceused to control the flow of electric power orcurrent.

(c) The inability of an electrical utility company,your stationary heating plant or any otherpower source to provide sufficient heat orpower due to:

(1) Lack of fuel;

(2) Lack of capacity to make enough heator power; or

(3) Order of the government.

(d) Breaking of any glass that is apermanent part of a refrigerating, coolingor humidity control unit.

E. DEDUCTIBLE

We will not pay for loss in any one occurrence unlessthe amount of loss exceeds the deductible stated inparagraph D.5. of the Standard Property CoverageForm or D.5. of the Special Property Coverage Form.,unless a different deductible is stated in the

of 2 Form SS 04 46 09 14

Declarations for Temperature Change. We will then paythe amount of loss in excess of the deductible, up to theLimit of Insurance.

F. LIMIT OF INSURANCE

The most we will pay for direct physical loss orphysical damage in any one occurrence is theLimit of Insurance for Temperature Changeshown in the Declarations.

G. ADDITIONAL CONDITIONS

1. We will pay for direct physical loss orphysical damage under this OptionalCoverage only when:

(a) Such physical loss or physical damageis not covered elsewhere in this policy orany other policy that insures the''perishable stock'' at the "scheduledpremises"; and

(b) This Temperature Change coverage isshown as a specific item of insurance inthe Declarations.

2. In the event of physical loss or physicaldamage, none of the other coverages underthis policy or any other policy will share in itspayment unless the provisions of the policyare similar to the provisions of this OptionalCoverage.

3. We will not pay more than the Limit ofInsurance shown in the Declarations for theTemperature Change.

H. ADDITIONAL DEFINITIONS

For the purpose of this insurance:

1. ''Mechanical breakdown'' means:

(a) Breaking or separation of anymechanical part(s) other than gas pipesor lines; or

(b) Burning out of any electrical motorservicing such unit; and

requiring replacement of the damaged partsto become functional.

But ''mechanical breakdown'' does not meanfaulty operation or failure of equipment whichresults in temperature change but does notrequire replacement of broken parts.

We will not pay for direct physical loss orphysical damage to "perishable stock"caused by such faulty operation or failure ofequipment.

2. ''Perishable stock'' means personal property:

(a) Maintained under controlled conditionsfor its preservation; and

(b) Susceptible to direct physical loss orphysical damage if the controlledconditions change.



VALUABLE PAPERS AND RECORDSThis endorsement modifies insurance provided under the following:



A. We will pay for direct physical loss of or physicaldamage to the following types of property at the"scheduled premises" that is your property orproperty of others in your care, custody or control:

Valuable Papers and Records, meaning inscribed,printed or written:

(1) Documents;

(2) Manuscripts;

(3) Records including patient records; or

(4) X-Rays

including abstracts, books, deeds, drawings, films,maps or mortgages.

But Valuable Papers and Records does notinclude:

(1) Property that cannot be reproduced, replaced orrestored;

(2) ''Money'' and ''Securities'';

(3) Converted data; or

(4) Programs or instructions used in your dataprocessing operations, including the material onwhich the data is recorded.

B. Limit of Insurance

The most we will pay for direct physical loss orphysical damage in any one occurrence is the Limitof Insurance for Valuable Papers and Recordsshown in the Declarations.

C. Deductible

We will not pay for loss in any one Occurrenceunless the amount of loss exceeds the policydeductible stated in the Declarations. We will thenpay the amount of loss in excess of the Deductible,up to the Limit of Insurance.

D. Under this Optional Coverage we will not pay forproperty:

(1) Held as samples or for delivery after sale;

(2) In storage away from the premises shown in theDeclarations; or

(3) If such property can not be replaced with otherproperty of like kind and quality.

E. With respect to this Optional Coverage, CoverageExtension A.5.h., Property Off-Premises in theStandard Property Coverage Form and CoverageExtension A.6.h., Property Off-Premises in the SpecialProperty Coverage Form are replaced by the following:

1. You may apply the insurance provided underthis Optional Coverage to Valuable Papers andRecords while such property is not at the"scheduled premises", including while in transit.The most we will pay for direct physical loss orphysical damage under this Coverage Extensionis 25% of the Limit of Insurance shown in theDeclarations for Valuable Papers and Recordsbut not more than $25,000.

2. However, if Valuable Papers and Records – Off-Premises is scheduled in the Declarations, thenthe limit in E.1. above is replaced by the limit ofinsurance shown in the Declarations forValuable Papers and Records – Off-Premises.

F. The Valuable Papers and Records CoverageExtension, paragraph A.5.i. in the Standard PropertyCoverage Form and paragraph A.6.i. in the SpecialProperty Coverage Form., do not apply to anypremises where this Optional Coverage applies.

G. With respect to coverage provided by thisendorsement, paragraph E.5.d.(6) in the StandardProperty Coverage Form and in the Special PropertyCoverage Form are replaced by the following:

(6) We will determine the value of "Valuable Papersand Records" at the cost of:

a. Blank materials for reproducing the records;and

of 2 Form SS 04 47 04 09

b. The reasonable cost to research, replace orrestore the lost information.

H. Section B. Exclusions does not apply to thisOptional Coverage except for:




I. Additional Exclusions

We will not pay for direct physical loss or physicaldamage caused by or resulting from any of thefollowing:

(1) Dishonest acts by:

(a) You, or your employees or authorizedrepresentatives;

(b) Anyone else with an interest in the property,or their employees or authorizedrepresentatives; or

(c) Anyone else to whom the property isentrusted.

This exclusion applies whether or not suchpersons are acting alone or in collusion withother persons or such acts occur during thehours of employment.

But this exclusion does not apply to a carrier forhire.

(2) Errors or omissions in processing or copying.

But we will pay for direct physical loss orphysical damage caused by resulting fire orexplosion.

(3) Electrical or magnetic injury, disturbance orerasure of electronic recordings.

But we will pay for direct physical loss orphysical damage caused by lightning.

(4) Voluntary parting with any property by you oranyone entrusted with the property if induced todo so by any fraudulent scheme, trick, device orfalse pretense.

(5) Unauthorized instructions to transfer property toany person or to any place.


CRIME COMMON CONDITIONS AND EXCLUSIONS



Standard Property 3. Joint InsuredThe following conditions are added theCoverage Form Special Property Coverageand the a. If more than one Insured is named in theForm. Declarations, the first named Insured will act

for itself and for every other Insured for allA. CRIME COMMON CONDITIONSpurposes of this insurance. If the first named1. Consolidation - MergerInsured ceases to be covered, then the next

If through consolidation or merger with, or named Insured will become the first namedpurchase of assets of, some other entity: Insured.a. Any additional persons become “employees” ; b. If any Insured or partner or officer of that

or Insured has knowledge of any informationrelevant to this insurance, that knowledge isb. You acquire the use and control of anyconsidered knowledge of every Insured.additional premises;

c. An “employee” of any Insured is considered toany insurance afforded for “employees” orbe an “employee” of every Insured.premises also applies to those additional

“employees” and premises, but only if you: d. If this insurance or any of its coverages is(1) canceled or terminated as to any Insured, lossGive us written notice within 60 days

sustained by that Insured is covered only ifthereafter; anddiscovered no later than one year from the(2) Pay us an additional premium.date of that cancellation or termination.

2. Discovery Period for Losse. We will not pay more for loss sustained by

We will pay only for covered loss discovered no more than one Insured than the amount welater than one year from the end of the policy would pay if all the loss had been sustainedperiod. by one Insured.Discovery of loss occurs when you first become 4. Legal Action Against Usaware of facts which would cause a reasonable

The following replaces the Legal Action Against Usperson to assume that a loss covered by thisin the Property Loss Conditions:policy has been, or may be incurred even thoughNo one may bring a legal action against us underthe exact amount or the details of the loss may notthis Coverage Part unless:then be known.

a.Discovery also occurs when you receive notice of There has been full compliance with all of thean actual or potential claim against you alleging terms of this Coverage Part; andfacts, which if true, would be a covered loss under b. The action is brought within 2 years after thethis policy. date on which you discover the loss .


5. Loss Sustained During Prior Insurance We will also apply any deductible under thatprior policy to the extent it exceeds thea. If you, or any predecessor in interest,deductible under this policy.sustained loss during the period of any prior

8. Ownership of Property, Interests Coveredinsurance that you or the predecessor ininterest could have recovered under that The property covered under this insurance isinsurance except that the time within which to limited to property:discover loss had expired, we will pay for it

a. That you own or hold; orunder this insurance, provided:b. For which you are legally liable.(1) This insurance became effective at theHowever, this insurance is for your benefit only. Ittime of cancellation or termination of theprovides no rights or benefits to any other personprior insurance; andor organization.(2) The loss would have been covered by this

9. Policy Periodinsurance had it been in effect when theacts or events causing the loss were a. The Policy Period is stated in thecommitted or occurred. Declarations.

b. The insurance under this Condition is part of, b. Subject to the Loss Sustained During Priornot in addition to, the Limits of Insurance A.5.Insurance condition, above, we will payapplying to this insurance and is limited to the only for loss that you sustain through actslesser of the amount recoverable under: committed or events occurring during the(1) Policy Period.This insurance as of its effective date; or

10. Recoveries(2) The prior insurance had it remained ineffect. The following replaces the Recovered Property in

the Property Loss Conditions:6. Non-Cumulation of Limit of Insurance

a. Any recoveries less the cost of obtainingRegardless of the number of years this insurancethem, made after settlement of loss coveredremains in force or the number of premiums paid,by this insurance will be distributed as follows:no Limit of Insurance cumulates from year to year

or period to period. (1) To you, until you are reimbursed for any7. Loss Covered Under This Insurance and Prior loss that you sustain that exceeds the

Limit of Insurance and the DeductibleInsurance Issued by Us or Any AffiliateAmount, if any;If any loss is covered under this policy and under

(2) Then to us, until we are reimbursed forany prior canceled or terminated insurance that wethe settlement made;or any affiliate had issued to you or any

predecessor in interest, we will not pay more that (3) Then to you, until you are reimbursed forthe highest single Limit of Insurance. We will that part of the loss equal to thesettle such claim as follows: Deductible Amount, if any.a. b.We will first pay the Limit of Insurance Recoveries do not include any recovery:

applicable under this policy subject to this (1) From insurance, suretyship, reinsurance,policy's applicable deductible; then security or indemnity taken for our benefit;

b. If the Limit of Insurance under that prior policy oris equal to or less than the Limit of Insurance (2) Of original “securities” after duplicat es ofunder this policy, we will make no further them have been issued.payment; or

B. CRIME COMMON EXCLUSIONSc. If the Limit of Insurance under that prior policy

The following are Exclusions replace the Exclusions inis higher than the Limit of Insurance under thisSection B:policy, we will then pay for any remaining part1. Governmental Actionof the loss.

But in no event will our total payment for loss We will not pay for loss resulting from seizure orbe more than would be payable under the destruction of property by order of governmentalpolicy with the highest Limit of Insurance. authority.

Page 2 of 3 Form SS 04 80 03 00

2. Indirect Loss 3. Any natural person who is your partner or memberof a limited liability corporation.We will not pay for loss that is an indirect result of

any act or occurrence covered by this insurance 4. Any natural person, whether or not compensa ted,including, but not limited to, loss resulting from: while performing services for you as the chairman

or a member of any committee;a. Your inability to realize income that you wouldhave realized had there been no loss of, or 5. Any natural person who is a non-compensatedloss from damage to, Covered Property. officer;

b. Payment of damages of any type for which 6. Any natural person who is a director or trusteeyou are legally liable. But, we will pay while acting as a member of any of your elected orcompensatory damages arising directly from a appointed committees or while acting within theloss covered under this insurance. scope of the usual duties of an "employee";

c. Payment of costs, fees or other expenses you 7. Any natural person who is a non-compens atedincur in establishing either the existence or the volunteer, other than one who is a fund solicitor,amount of loss under this insurance. while performing services for you that are usual to

the duties of an "employee";3. Legal Expenses8. Any natural person who is a former employee,We will not pay for expenses related to any legal

director, partner, member, representative oraction.trustee retained as a consultant while performing

4. Nuclear Hazard services for you;We will not pay for loss resulting from nuclear 9. Any natural person who is a student intern who isreaction, nuclear radiation or radioactive pursuing studies or acting within the scope of thecontamination, or any related act or incident. usual duties of an “employee” ;

5. War and Similar Actions 10. Any natural person, who is a student enrolled inWe will not pay for loss resulting from war, your facility, while handling or has possession ofwhether or not declared, warlike action, property or funds in connection with sanctionedinsurrection, rebellion or revolution, or any related student activities;act or incident. 11. The spouses of and children over 18 years old

C. CRIME COMMON DEFINTIONS who reside with any "employee" who is a buildingmanager, superintendent or janitor.The following is added to Definitions

Each family is deemed to be, collectively, one"Employee" means:"employee" for the purposes of this insurance,

1. Any natural person: except that any Termination Condition appliesa. While in your service (and for 60 days after individually to the spouse and children.

termination of service); and "Employee" does not mean:b. Whom you compensate directly by salary, (1) An agent, broker, factor, commission merchant,

wages or commissions; and consignee, independent contractor orc. Whom you have the right to direct and control representative of the same general character; or

while performing services for you; (2) Any manager, director, partner, member or trustee,2. Any natural person employed by an employment except while acting within the scope of the usual

contractor while that person is subject to your duties of an “employee” .direction and control and performing services foryou excluding, however, any such person whilehaving care and custody of property outside thepremises;

Form SS 04 80 03 00 Page 3 of 3


FORGERY COVERAGE(Including Credit Cards, Currency and Money Orders)



Except as otherwise stated in this endorsement, the will pay for any reasonable legal expenses thatterms and conditions of the policy apply to the you incur and pay in that defense. Thisinsurance stated below. payment is in addition to the applicable Limit ofThe following is added to Additional Coverages: Insurance. The Deductible does not apply to

this Coverage Extension.A. FORGED OR ALTERED INSTRUMENTSCOVERAGE 4. Additional Conditions1. Covered Property The following conditions apply in addition to

the Common Policy Conditions and the CrimeCovered Property means the followingCommon Conditions and Exclusions Form.instruments:

a. We will treat mechanically reproduceda. Checks, drafts, promissory notes, orfacsimile signatures the same assimilar written promises, orders orhandwritten signatures.directions to pay a sum certain in "money"

that are: b. You must include with your proof of lossany instrument involved in that loss, or, if(1) Made or drawn by or drawn upon you;that is not possible, an affidavit setting(2) Made or drawn by one acting as yourforth the amount and cause of loss.

agent;c. The Coverage Territory is revised to coveror that are purported to have been so

loss you sustain anywhere in the world.made or drawn; and5. Exclusionb. Written instruments required in

The following Exclusion applies in addition toconjunction with any credit, debit orthe Exclusions in the Crime Commoncharge card issued to you or anyConditions and Exclusions."employee" for business purposes.

We will not pay for loss resulting from any2. Covered Causes of Lossdishonest or criminal act committed by any of

Covered Causes of Loss means forgery oryour "employees” , directors, or trustees:

alteration.a. Acting alone or in collusion with other3. Legal Expense Additional Coverage

persons; orIf you are sued for refusing to pay any

b. While performing services for you orCovered Instrument on the basis that it hasotherwise.been forged or altered, and you have our

written consent to defend against the suit, we


B. COUNTERFEIT CURRENCY AND MONEY b. We will not pay for loss resulting from theORDERS COVERAGE giving or surrendering of property in any

exchange or purchase.1. Covered Propertyc. We will not pay for loss resulting fromCovered Property means the following:

your, or anyone acting on your express orWe will pay for loss directly resulting from implied authority, being induced by anya. Money orders, including counterfeit money dishonest act to voluntarily part with title to

orders, of any United States or Canadian or possession of any property.post office, express company or national C DEDUCTIBLEor state (or Canadian) chartered bank that

We will not pay for loss in any one Occurrenceare not paid upon presentation; andunless the amount of loss exceeds the

b. Counterfeit United States or Canadian Deductible stated in the Declarations. We willpaper currency. then pay the amount of loss in excess of the

2. Covered Causes of Loss Deductible, up to the Limit of Insurance.

Covered Causes of Loss means the D. LIMIT OF INSURANCEacceptance of Covered Property in good faith, The most we will pay for each Occurrence of lossin exchange for merchandise, money or under this Endorsement is the Forgery Limit ofservices, during the regular course of Insurance stated in the Declarations.business.

The Additional Coverages are included in this Limit3. Exclusions of Insurance.

The following Exclusion applies in addition to E. OCCURRENCE DEFINITIONthe Exclusions in the Crime Common

1. For Forged or Altered Instruments Coverage,Conditions and Exclusions.Occurrence means all loss caused by any

a. We will not pay for loss resulting from any person or in which that person is involved,dishonest or criminal act committed by any whether the loss involves one or moreof your "employees” , directors, trustees or instruments of Covered Property.authorized representatives:

2. For Counterfeit Currency and Money Order(1) Acting alone or in collusion with other OccurrenceCoverage, means an:

persons; ora. Act or series of related acts involving one

(2) While performing services for you or or more persons; orotherwise.

b. Act or event, or series of related acts orevents not involving any person.

Page 2 of 2 Form SS 04 86 03 00



OFF-PREMISES UTILITY SERVICES – DIRECT DAMAGE



Except as otherwise stated in this endorsement, theterms and conditions of the policy apply to theinsurance stated below.

A. DIRECT DAMAGE EXTENSION FOR OFF-PREMISES UTILITY SERVICES

This Coverage Extension applies only to the“scheduled premises” shown in the Declarationswith a Utility Services Limit of Insurance. TheUtility Services Limit of Insurance is part of, not inaddition to, the Limit of Insurance stated in theDeclarations as applicable to the CoveredProperty.

We will pay for direct physical loss of or physicaldamage to Covered Property described in theDeclarations caused by the interruption of utilityservice to the “scheduled premises”. Theinterruption must result from direct physical loss orphysical damage by a Covered Cause of Loss tothe following property, not on the “scheduledpremises”:

1. "Water Supply Services";

2. "Communication Supply Services"; or

3. "Power Supply Services".

B. ADDITIONAL DEFINITIONS1. "Water Supply Services", meaning the

following types of property supplying water tothe “scheduled premises”:a. Pumping stations; and

b. Water mains.2. "Communication Supply Services",

meaning property supplying communicationservices, including telephone, radio,microwave or television services, includingoverhead transmission lines to the “scheduledpremises”, such as:a. Communication transmission lines,

including optic fiber transmission lines;b. Coaxial cables; andc. Microwave radio relays except satellites.

3. "Power Supply Services", meaning thefollowing types of property supplyingelectricity, steam or gas, including overheadtransmission lines to the “scheduledpremises”:a. Utility generating plants;b. Switching stations;c. Substations;d. Transformers; ande. Transmission Lines.



CYBERFLEX COVERAGE



This endorsement modifies coverage under theBusiness Liability Coverage Form for your web site orinternet related activities.A. Exclusion 1.p. "Personal and Advertising Injury"

(Section B. - EXCLUSIONS) is modified as follows:1. Paragraphs (4), (5) and (7) are deleted and

replaced by the following:(4) Arising out of any breach of contract,

except an implied contract to useanother's "advertising idea" in your"advertisement" or on "your web site";

(5) Arising out of the failure of goods,products or services to conform withany statement of quality orperformance made in your"advertisement" or on "your web site";

(7) (a) Arising out of any actual or allegedinfringement or violation of anyintellectual property rights, such ascopyright, patent, trademark, tradename, trade secret, service mark orother designation of origin orauthenticity; or

(b) Any injury or damage alleged in anyclaim or "suit" that also alleges aninfringement or violation of anyintellectual property right, whethersuch allegation of infringement orviolation is made against you or anyother party involved in the claim or"suit", regardless of whether thisinsurance would otherwise apply.

However, this exclusion does not apply ifthe only allegation in the claim or "suit"involving any intellectual property right islimited to:

(1) Infringement in your"advertisement", of:(a) Copyright;(b) Slogan; or(c) Title of any literary or artistic

work; or

(2) Copying in your "advertisement", aperson's or organization's"advertising idea" or style of"advertisement".

2. Paragraph (9) does not apply.3. Subparagraphs (a), (b) and (c) of Paragraph

(12) do not apply.B. Section G. - LIABILITY AND MEDICAL

EXPENSES DEFINITIONS is amended as follows:1. Paragraph b. of definition 1. "advertisement" is

deleted and replaced by:"Advertisement" means the widespread publicdissemination of information or images thathas the purpose of inducing the sale of goods,products or services through:b. The Internet;

2. Paragraphs f. and g. of the definition of"personal and advertising injury" are deletedand replaced by the following:"Personal and advertising injury" means injury,including consequential "bodily injury", arisingout of one or more of the following offenses:f. Copying, in your "advertisement" or on "your

web site", a person's or organization's"advertising idea" or style of "advertisement";

g. Infringement of copyright, slogan, or title ofany literary or artistic work, in your"advertisement" or on "your web site"; or

3. The following is added to the definition of"personal and advertising injury":As used in this definition, oral, written or electronicpublication includes publication of material in yourcare, custody or control by someone notauthorized to access or distribute that material.

4. The following definition is added:"Your web site" means a web page or set ofinterconnected web pages prepared andmaintained by you, or by others on your behalf, forthe purposes of promoting your goods or services,that is accessible over a computer network.



ACTUAL LOSS SUSTAINED BUSINESS INCOME & EXTRAEXPENSE - SPECIFIED LIMIT COVERAGE



This coverage applies only when it is indicated in theDeclarations. The provisions of the policy apply to thecoverage stated in this endorsement, except asindicated below.

A. Provision A.4.g. Business Income in the StandardProperty Coverage Form and provision A.5.o.Business Income in the Special Property CoverageForm are deleted and replaced by the following:

Business Income

(1) We will pay for the actual loss of BusinessIncome you sustain due to the necessarysuspension of your "operations" during the"period of restoration". The suspension must becaused by direct physical loss of or physicaldamage to property at the ”scheduledpremises”, including personal property in theopen (or in a vehicle) within 1,000 feet of the"scheduled premises", caused by or resultingfrom a Covered Cause of Loss.

(2) With respect to the requirements set forth in thepreceding paragraph, if you occupy only part ofthe site at which the "scheduled premises" arelocated, your "scheduled premises" also means:

(a) The portion of the building which you rent,lease or occupy; and

(b) Any area within the building or on the site atwhich the "scheduled premises" are located,but only if that area services, or is used to gainaccess to, the "scheduled premises".

(3) We will only pay for loss of Business Incomethat occurs within 12 consecutive months afterthe date of direct physical loss or physical

damage. This Additional Coverage is subject tothe Business Income Specified Limit ofInsurance indicated in the Declarations.


(a) Net Income (Net Profit or Loss beforeincome taxes) that would have been earnedor incurred if no direct physical loss orphysical damage had occurred; and

(b) Continuing normal operating expensesincurred, including payroll.

(5) With respect to the coverage provided in thisAdditional Coverage, suspension means:

(a) The partial slowdown or complete cessationof your business activities; or

(b) That part or all of the "scheduled premises"is rendered untentanable as a result of aCovered Cause of Loss if coverage forBusiness Income applies to the policy.

B. Provision A.4.h. Extra Expense in the StandardProperty Coverage Form and provision A.5.p. ExtraExpense in the Special Property Coverage Formare deleted and replaced by the following:

Extra Expense

(1) We will pay reasonable and necessary ExtraExpense you incur during the "period ofrestoration" that you would not have incurred ifthere had been no direct physical loss orphysical damage to property at the ”scheduledpremises”, including personal property in theopen (or in a vehicle) within 1,000 feet, causedby or resulting from a Covered Cause of Loss.

of 2 Form SS 40 60 10 12

(2) With respect to the requirements set forth in thepreceding paragraph, if you occupy only part ofthe site at which the "scheduled premises" arelocated, your "scheduled premises" also means:

(a) The portion of the building which you rent,lease or occupy; and

(b) Any area within the building or on the site atwhich the "scheduled premises" are located,but only if that area services, or is used to gainaccess to, the "scheduled premises".

(3) Extra Expense means expense incurred:

(a) To avoid or minimize the suspension ofbusiness and to continue "operations":

(i) At the ”scheduled premises”; or

(ii) At replacement premises or attemporary locations, including:

(aa) Relocation expenses; and

(bb) Cost to equip and operate thereplacement or temporary location,other than those costs necessary torepair or to replace damaged stockand equipment.

(b) To minimize the suspension of business ifyou cannot continue "operations".

(c) To:

(i) Repair or replace any property; or

(ii) Research, replace or restore the lostinformation on damaged "valuablepapers and records";

to the extent it reduces the amount of loss thatotherwise would have been payable under thisAdditional Coverage, Extra Expense, orAdditional Coverage – Business Income.

We will only pay for Extra Expense that occurswithin 12 consecutive months after the date ofdirect physical loss or physical damage. ThisAdditional Coverage is included in and subjectto the Business Income Specified Limit ofInsurance indicated in the Declarations.


(a) The partial slowdown or complete cessationof your business activities; or

(b) That part or all of the "scheduled premises"is rendered untentanable as a result of aCovered Cause of Loss if coverage forExtra Expense applies to the policy.

(5) Limitation

This Extra Expense Coverage does not apply to:

(a) Any deficiencies in insuring building orbusiness personal property; or

(b) Any expense related to any recall ofproducts you manufacture, handle ordistribute.

C. Provision A.4.j. Extended Business Income in theStandard Property Coverage Form and provisionA.5.r. Extended Business Income in the SpecialProperty Coverage Form are deleted and replacedby the following:

Extended Business Income

(1) If the necessary suspension of your "operations"produces a Business Income loss payableunder this policy, we will pay for the actual lossof Business Income you incur during that periodthat:

(a) Begins on the date property is actuallyrepaired, rebuilt or replaced and"operations" are resumed; and

(b) Ends on the earlier of:

(i) The date you could restore your"operations" with reasonable speed, tothe condition that would have existed ifno direct physical loss or physicaldamage occurred; or

(ii) 30 consecutive days after the datedetermined in (1)(a) above.

Loss of Business Income must be caused bydirect physical loss or physical damage at the“scheduled premises” caused by or resultingfrom a Covered Cause of Loss.

This Additional Coverage is included in andsubject to the Business Income Specified Limitof Insurance indicated in the Declarations.


(a) The partial slowdown or complete cessation ofyour business activities; and

(b) That a part or all of the "scheduled premises"is rendered untenantable as a result of aCovered Cause of Loss.


Form SS 40 93 07 05 Page 1 of 3


LIMITED FUNGI, BACTERIA OR VIRUS COVERAGE


SPECIAL PROPERTY COVERAGE FORMSTANDARD PROPERTY COVERAGE FORM

PERSONAL PROPERTY OF OTHERSCOMPUTERS AND MEDIA COVERAGE

A. Fungi, Bacteria or Virus Exclusions

1. Paragraph A.5.i.(5). of the Increased Cost ofConstruction Additional Coverage of theStandard Property Coverage Form is replacedby the following:

(5) Under this Additional Coverage, wewill not pay for:

(a) The enforcement of any ordinanceor law which requires demolition,repair, replacement, reconstruction,remodeling, or remediation ofproperty due to contamination by"pollutants" or due to the presence,growth, proliferation, spread or anyactivity of "fungi", wet or dry rot,bacteria or virus; or

(b) Any costs associated with theenforcement of an ordinance orlaw which requires any insured orothers to test for, monitor, cleanup, remove, contain, treat, detoxifyor neutralize, or in any wayrespond to or assess the effects of"pollutants", "fungi", wet or dry rot,bacteria or virus.

2. The following exclusion is added to ParagraphB.1. Exclusions of the Standard PropertyCoverage Form and the Special PropertyCoverage Form; Paragraph F., AdditionalExclusions of Computers and Media, formSS 04 41, and to form SS 04 45, PersonalProperty of Others:

i. "Fungi", Wet Rot, Dry Rot, Bacteria AndVirus

We will not pay for loss or damage causeddirectly or indirectly by any of thefollowing. Such loss or damage isexcluded regardless of any other cause orevent that contributes concurrently or inany sequence to the loss:

(1) Presence, growth, proliferation,spread or any activity of "fungi", wetrot, dry rot, bacteria or virus.

(2) But if "fungi", wet rot, dry rot, bacteriaor virus results in a "specified cause ofloss" to Covered Property, we will payfor the loss or damage caused by that"specified cause of loss".

This exclusion does not apply:

(1) When "fungi", wet or dry rot, bacteriaor virus results from fire or lightning; or

(2) To the extent that coverage isprovided in the Additional Coverage –Limited Coverage for "Fungi", WetRot, Dry Rot, Bacteria and Virus withrespect to loss or damage by a causeof loss other than fire or lightning.

This exclusion applies whether or not the lossevent results in widespread damage or affects asubstantial area.

B. The following Additional Coverage is added toParagraph A.4. of the Standard Property CoverageForm or Paragraph A.5. of the Special PropertyCoverage Form, and applies to the optional coverageform SS 04 41, Computers and Media and SS 04 45,Personal Property of Others and form:

of 3 Form SS 40 93 07 05

1. Limited Coverage For "Fungi", Wet Rot,Dry Rot, Bacteria and Virus

a. The coverage described in 1.b. below onlyapplies when the "fungi", wet or dry rot,bacteria or virus is the result of one ormore of the following causes that occursduring the policy period and only if allreasonable means were used to save andpreserve the property from further damageat the time of and after that occurrence.

(1) A "specified cause of loss" other thanfire or lightning;

(2) Equipment Breakdown Accidentoccurs to Equipment BreakdownProperty, if Equipment Breakdownapplies to the affected premises.

b. We will pay for loss or damage by "fungi",wet rot, dry rot, bacteria and virus. Asused in this Limited Coverage, the termloss or damage means:

(1) Direct physical loss or direct physicaldamage to Covered Property caused by"fungi", wet rot, dry rot, bacteria or virus,including the cost of removal of the"fungi", wet rot, dry rot, bacteria or virus;

(2) The cost to tear out and replace any partof the building or other property asneeded to gain access to the "fungi", wetrot, dry rot, bacteria or virus; and

(3) The cost of testing performed afterremoval, repair, replacement orrestoration of the damaged property iscompleted, provided there is a reasonto believe that "fungi", wet rot, dry rot,bacteria or virus are present.

c. Unless a higher Limit of Insurance is shownin the Declarations for Limited "Fungi",Bacteria or Virus Coverage, the coveragedescribed under this Limited Coverage is nomore than the Limit of Insurance stated in theDeclarations for Building and BusinessPersonal Property, but not greater than$50,000.

If form SS 04 41, Computers and Media,and form SS 04 45, Personal Property ofOthers, are made a part of this policy, thenthe Limits of Insurance for Computers andMedia, and Personal Property of Others isincluded within this coverage limit. Thiscoverage is made applicable to separate"scheduled premises" as described in theDeclarations. Regardless of the numberof claims, this limit is the most we will payper "scheduled premises" for the total ofall loss or damage arising out of all

(1) occurrences of "specified causes ofloss" (other than fire or lightning); and

(2) Equipment Breakdown Accident thatoccurs to Equipment BreakdownProperty;

which take place in a 12-month period(starting with the beginning of thepresent annual policy period).

With respect to a particular occurrence ofloss which results in "fungi", wet or dry rot,bacteria or virus, we will not pay morethan the total of $50,000 unless a higherLimit of Insurance is shown in theDeclarations, even if the "fungi", wet or dryrot, bacteria, or virus continues to bepresent or active, or recurs, in a laterpolicy period.

d. The coverage provided under this LimitedCoverage does not increase the applicableLimit of Insurance on any CoveredProperty. If a particular occurrence resultsin loss or damage by "fungi", wet rot, dryrot, bacteria or virus, and other loss ordamage, we will not pay more, for the totalof all loss or damage, than the applicableLimit of Insurance on the affected CoveredProperty.

If there is covered loss or damage toCovered Property, not caused by "fungi",wet rot, dry rot, bacteria or virus, losspayment will not be limited by the terms ofthis Limited Coverage, except to the extentthat "fungi", wet or dry rot, bacteria or viruscauses an increase in the loss. Any suchincrease in the loss will be subject to theterms of this Limited Coverage.

e. The terms of this Limited Coverage do notincrease or reduce the coverage for WaterDamage provided under provision B.1.h.,Exclusion – Water Damage of the StandardProperty Coverage Form or AdditionalCoverage provision A.5.n., Water Damage,Other Liquid, Powder or Molten MaterialDamage of the Special Property CoverageForm.

f. The following applies only if a Time ElementCoverage applies to the "scheduledpremises" and only if the suspension of"operations" satisfies all the terms andconditions of the applicable Time ElementCoverage.

(1) If the loss which resulted in "fungi",wet or dry rot, bacteria or virus doesnot in itself necessitate a suspensionof "operations", but such suspensionis necessary due to loss or damage to

Form SS 40 93 07 05 Page 3 of 3

property caused by "fungi", wet or dry rot,bacteria or virus, then our payment underthe Time Element Coverage is limited tothe amount of loss and expense sustainedin a period of not more than 30 daysunless another number of days isindicated in the Declarations. The daysneed not be consecutive. If a coveredsuspension of "operations" was caused byloss or damage other than "fungi", wet ordry rot, bacteria or virus, but remediationof "fungi", wet or dry rot, bacteria or virusprolongs the "period of restoration", we willpay for loss and expense sustained duringthe delay (regardless of when such adelay occurs during the "period ofrestoration"), but such coverage is limitedto 30 days unless another number of daysis indicated in the Declarations. The daysneed not be consecutive.

C. Fungi Definition

1. "Fungi" means any type or form of fungus,including mold or mildew, and any mycotoxins,spores, scents or by-products produced orreleased by fungi.



IDENTITY RECOVERY COVERAGE FOR BUSINESSOWNERSAND EMPLOYEES

IDENTITY THEFT CASE MANAGEMENT SERVICE AND EXPENSEREIMBURSEMENT



A. The following is added to paragraph 5. AdditionalCoverages (Section A. - Coverage):

IDENTITY RECOVERY COVERAGE

We will provide the Case Management Service andExpense Reimbursement Coverage indicatedbelow if all of the following requirements are met:

1. There has been an "identity theft" involving thepersonal identity of an "identity recoveryinsured" under this policy; and

2. Such "identity theft" is first discovered by the"identity recovery insured" during the policyperiod for which this Identity Recoverycoverage is applicable; and

3. Such "identity theft" is reported to us as soonas practicable but in no event later than 60days after it is first discovered by the "identityrecovery insured."

If all three of the requirements listed above havebeen met, then we will provide the following to the"identity recovery insured":

1. Case Management Service

Services of an "identity recovery casemanager" as needed to respond to the "identitytheft"; and

2. Expense Reimbursement

Reimbursement of necessary and reasonable"identity recovery expenses" incurred as adirect result of the "identity theft."

This coverage is additional insurance.

B. The following additional exclusions are added toSection B. - Exclusions and apply to this coverage:

EXCLUSIONS

We do not cover loss or expense arising from anyof the following:

1. Theft of a professional or business identity.

2. Any fraudulent, dishonest or criminal act by an"identity recovery insured" or any person aidingor abetting an "identity recovery insured", or byany authorized representative of an "identityrecovery insured", whether acting alone or incollusion with others. However, this exclusionshall not apply to the interests of an "insured"who has no knowledge of or involvement insuch fraud, dishonesty or criminal act.

3. Loss other than "identity recovery expenses".

4. An "identity theft" that is first discovered by the"identity recovery insured" prior to or after thepolicy period for which this coverage applies.This exclusion applies whether or not such"identity theft" began or continued during theperiod of coverage.

5. An "identity theft" that is not reported to uswithin 60 days after it is first discovered by the"identity recovery insured."

6. An "identity theft" that is not reported in writingto the police.

of 3 Form SS 41 12 12 17


1. Case Management Service is available asneeded for any one "identity theft" for up to 12consecutive months from the inception of theservice. Expenses we incur to provide CaseManagement Service do not reduce theamount of limit available for ExpenseReimbursement coverage.

2. Expense Reimbursement coverage is subjectto a limit of $15,000 annual aggregate per"identity recovery insured." Regardless of thenumber of claims, this limit is the most we willpay for the total of all loss or expense arisingout of all "identity thefts" to any one "identityrecovery insured" which are first discovered bythe "identity recovery insured" during a 12-month period starting with the beginning of thepresent annual policy period. If an "identitytheft" is first discovered in one policy periodand continues into other policy periods, all lossand expense arising from such "identity theft"will be subject to the aggregate limit applicableto the policy period when the "identity theft" wasfirst discovered.

a. Legal costs as provided under paragraph d.of the definition of "identity recoveryexpenses" are part of, and not in addition to,the Expense Reimbursement coverage limit.

b. Lost Wages and Child and Elder CareExpenses as provided under paragraphs e.and f. of the definition of "identity recoveryare jointly subject to a sublimit of $250 perday, not to exceed $5,000 in total. Thissublimit is part of, and not in addition to,the Expense Reimbursement coveragelimit. Coverage is limited to lost wages andexpenses incurred within 12 months afterthe first discovery of the "identity theft" bythe "identity recovery insured".

c. Mental Health Counseling as providedunder paragraph g. of the definition of"identity recovery expenses" is subject to asublimit of $1,000. This sublimit is part of,and not in addition to, the ExpenseReimbursement coverage limit. Coverageis limited to counseling that takes placewithin 12 months after the first discovery ofthe "identity theft" by the "identity recoveryinsured".

D. DEDUCTIBLE

Case Management Service is not subject to adeductible.

Expense Reimbursement coverage is subject to adeductible of $250. Any one "identity recoveryinsured" shall be responsible for only onedeductible under this Identity Recovery Coverageduring any one policy period.

E. The following additional conditions are added toSection F. - Property General Conditions and applyto this coverage:

CONDITIONS

1. Assistance and Claims

For assistance, the "identity recovery insured"should call the Identity Recovery Help Line at1-866-989-2905.

The Identity Recovery Help Line can providethe "identity recovery insured" with:

a. Information and advice for how to respondto a possible "identity theft"; and

b. Instructions for how to submit a servicerequest for Case Management Serviceand/or a claim form for ExpenseReimbursement Coverage.

In some cases, we may provide CaseManagement services at our expense to an"identity recovery insured" prior to adetermination that a covered "identify theft" hasoccurred. Our provision of such services is notan admission of liability under the policy. Wereserve the right to deny further coverage orservice if, after investigation, we determine thata covered "identify theft" has not occurred.

As respects Expense ReimbursementCoverage, the "identity recovery insured" mustsend to us, within 60 days after our request,receipts, bills or other records that support hisor her claim for "identity recovery expenses."

2. Services

The following conditions apply as respects anyservices provided by us or our designees toany "identity recovery insured" under thisendorsement:

a. Our ability to provide helpful services in theevent of an "identity theft" depends on thecooperation, permission and assistance ofthe "identity recovery insured."

b. All services may not be available orapplicable to all individuals. For example,"identity recovery insureds" who are minors orforeign nationals may not have credit recordsthat can be provided or monitored. Service inCanada will be different from service inUnited States and Puerto Rico in accordancewith local conditions.

c. We do not warrant or guarantee that ourservices will end or eliminate all problemsassociated with an "identity theft" orprevent future "identity thefts."

Form SS 41 12 12 17 Page 3 of 3

F. With respect to the provisions of this endorsementonly, the following definitions are added to SectionG. - Property Definitions:

DEFINITIONS

1. "Identity Recovery Case Manager" means oneor more individuals assigned by us to assist an"identity recovery insured" withcommunications we deem necessary for re-establishing the integrity of the personal identityof the "identity recovery insured." This includes,with the permission and cooperation of the"identity recovery insured," written andtelephone communications with lawenforcement authorities, governmentalagencies, credit agencies and individualcreditors and businesses.

2. "Identity Theft" means the fraudulent use of thesocial security number or other method ofidentifying an "identity recovery insured." Thisincludes fraudulently using the personal identityof an "identity recovery insured" to establishcredit accounts, secure loans, enter intocontracts or commit crimes.

"Identity theft" does not include the fraudulentuse of a business name, d/b/a or any othermethod of identifying a business activity.

3. "Identity Recovery Expenses" means thefollowing when they are reasonable andnecessary expenses that are incurred in theUnited States or Canada as a direct result ofan "identity theft":

a. Costs for re-filing applications for loans,grants or other credit instruments that arerejected solely as a result of an "identity theft."

b. Costs for notarizing affidavits or othersimilar documents, long distance telephonecalls and postage solely as a result of yourefforts to report an "identity theft" or amendor rectify records as to your true name oridentity as a result of an "identity theft."

c. Costs for up to twelve (12) credit reportsfrom established credit bureaus datedwithin 12 months after your knowledge ordiscovery of an "identity theft."

d. Legal Costs

Fees and expenses for an attorneyapproved by us for:

(1) Defending any civil suit brought againstan "identity recovery insured" by acreditor or collection agency or entityacting on behalf of a creditor for non-payment of goods or services ordefault on a loan as a result of an"identity theft"; and

(2) Removing any civil judgmentwrongfully entered against an "identityrecovery insured" as a result of the"identity theft."

e. Lost Wages

Actual lost wages of the "identity recoveryinsured" for time reasonably andnecessarily take away from work and awayfrom the work premises. Time away fromwork includes partial or whole work days.Actual lost wages may include payment forvacation days, discretionary days, floatingholidays and paid personal days. Actuallost wages does not include sick days orany loss arising from time taken away fromself employment. Necessary time off doesnot include time off to do tasks that couldreasonably have been done during non-working hours.

f. Child and Elder Care Expenses

Actual costs for supervision of children orelderly or infirm relatives or dependents ofthe "identity recovery insured" during timereasonably and necessarily taken awayfrom such supervision. Such care must beprovided by a professional care providerwho is not a relative of the "identityrecovery insured".

g. Mental Health Counseling

Actual costs for counseling from a licensedmental health professional. Such caremust be provided by a professional careprovider who is not a relative of the "identityrecovery insured".

4. "Identity Recovery Insured" means thefollowing:

a. A full time employee of the entity insuredunder this policy; or

b. The owner of the entity insured under thispolicy who meets any of the followingcriteria:

(1) A sole proprietor of the insured entity;

(2) A partner in the insured entity; or

(3) An individual having an ownershipposition of 20% or more of the insuredentity.

An "identity recovery insured" must always bean individual person. The entity insured underthis policy is not an "identity recovery insured."

All other provisions of this policy apply.


Form SS 41 51 10 09 Page 1 of 1


BUILDING LIMIT- AUTOMATIC INCREASE REVISION



Except as otherwise stated in this endorsement, theterms and conditions of the policy apply to the insurancestated below.A. Paragraph C.5 Building Limit-Automatic Increase

of the SPECIAL PROPERTY COVERAGE FORM orSTANDARD PROPERTY COVERAGE FORM isdeleted.

B. The following is added to Additional Coverages,paragraph A.5 of the SPECIAL PROPERTYCOVERAGE FORM or paragraph A.4. of theSTANDARD PROPERTY COVERAGE FORM:

Building Limit - Automatic Increase

a. If the covered loss or damage to Buildingproperty at a “scheduled premises” exceeds theLimit of Insurance stated in the Declarations, theLimit of Insurance available for the covered lossor damage in that occurrence will automaticallyincrease by up to 8%.

b. The amount of increase will be:

(1) The Limit of Insurance for Buildings thatapplied on the most recent of the policyinception date, policy anniversary date, orthe date of any other policy changeamending the Building limit, multiplied by

(2) The 8% annualized percentage of AutomaticIncrease, expressed as a decimal

(08), multiplied by

(3) The number of days since the beginning ofthe current policy year or the effective dateof the most recent policy change amendingthe Limit of Insurance for Buildings, dividedby 365.

Example:

The applicable Limit of Insurance for Buildings is$100,000. The automatic increase percentage is8%. The number of days since the beginning ofthe policy period (or last policy change) is 146.

The amount of increase is:

$100,000 X .08 X 146 divided by 365 = $3,200



(Includes copyrighted material of Insurance Services Office, Inc. with its permission.)

AMENDMENT - DEFINITION OF INSURED CONTRACT



Paragraph f. of the definition of "insured contract" in the Liability And Medical Expenses Definitions Section isreplaced by the following:f. That part of any other contract or agreement pertaining to your business (including an indemnification of a

municipality in connection with work performed for a municipality) under which you assume the tort liability ofanother party to pay for "bodily injury" or "property damage" to a third person or organization. Tort liabilitymeans a liability that would be imposed by law in the absence of any contract or agreement.

Paragraph f. includes that part of any contract or agreement that indemnifies a railroad for "bodily injury" or"property damage" arising out of construction or demolition operations within 50 feet of any railroad propertyand affecting any railroad bridge or trestle, tracks, road-beds, tunnel, underpass or crossing.

However, Paragraph f. does not include that part of any contract or agreement:

(1) That indemnifies an architect, engineer or surveyor for injury or damage arising out of:

(a) Preparing, approving or failing to prepare or approve maps, shop drawings, opinions, reports surveys,field orders, change orders, designs or drawings and specifications; or

(b) Giving directions or instructions, or failing to give them, if that is the primary cause of the injury or

damage; or

(2) Under which the insured, if an architect, engineer or surveyor, assumes liability for an injury or damagearising out of the insured's rendering or failure to render professional services, including those listed in (1)above and supervisory, inspection, architectural or engineering activities.


PERILS SPECIFICALLY EXCEPTED

As used herein, "Peril" means a cause of physical loss ordamage to property. It has this meaning whether or not itis called a "Peril" or a "Cause of Loss" in this policy.

This exception A. does not reduce the insurance forloss or damage caused directly by a Covered Peril.

As used in this endorsement:Even if any of the terms of this policy might be construedotherwise, the following Perils, as described in ParagraphsA. and B. below, are SPECIFICALLY EXCEPTED FROMTHIS POLICY. WE DO NOT COVER OR INSUREAGAINST LOSS OR DAMAGE DIRECTLY ORINDIRECTLY CAUSED BY, RESULTING FROM,CONTRIBUTED TO OR AGGRAVATED BY, OR WHICHWOULD NOT HAVE OCCURRED BUT FOR, EITHER OFTHESE PERILS:

1. If this policy is written to cover the risk of loss fromspecifically named causes. "Covered Peril"means any Peril specifically named as covered; or

2. If written to cover the risk of loss withoutspecifying specifically named causes, "CoveredPeril" means any Peril not described above andnot otherwise excluded or excepted from thecauses of loss covered by this policy.

A. ACTS, ERRORS OR OMISSIONS by you or others in: B. COLLAPSE, "CRACKING" OR "SHIFTING" ofbuildings, other structures or facilities, or their parts, ifthe collapse, "cracking" or "shifting":

1. Planning, zoning, developing, surveying, testing orsiting property;

1. Occurs during "earth movement," "volcaniceruption" or "flood" conditions or within 72 hoursafter they cease; and

2. Establishing or enforcing any building code, or anystandard, ordinance or law about the construction,use or repair of any property or materials, orrequiring the tearing down of any property,including the removal of its debris;

2. Would not have occurred but for "earthmovement," "volcanic eruption" or "flood."

3. The design, specifications, workmanship, repair,construction, renovation, remodeling, grading orcompaction of all or any part of the following:

But if loss or damage by a covered Peril ensues at thecovered premises, we will pay for that ensuing loss ordamage.

a. Land or buildings or other structures;This exception B. applies whether or not there areother provisions in this policy relating to collapse,"cracking" or "shifting" of buildings, other structures orfacilities, or their parts. Any such provision is revisedby this endorsement to include this exception.

b. Roads, water or gas mains, sewers, drainageditches, levees, dams, or other facilities; or

c. Other improvements or changes in oradditions to land or other property.

4. The furnishing of work, materials, parts orequipment in connection with the design,specifications, workmanship, repair, construction,renovation, remodeling, grading or compaction ofany of the above property or facilities; or

But if this policy specifically covers (by endorsement or inany other way) loss or damage caused by one or more ofthe following Perils:

1. Earthquake;

2. Flood;5. The maintenance of any of such property or

facilities.3. Volcanic action;

4. Volcanic eruption; orThis exception A. applies whether or not the propertyor facilities described above are: 5. Sinkhole collapse,

this exception B. will not reduce that coverage.1. Covered under this policy; or

As used in this exception B.:2. On or away from the covered premises.

Form IH 10 01 09 86 Printed in U.S.A. Page 1 of 2


1. "Cracking" means cracking, separating, shrinking,bulging, or expanding;

5. "Volcanic eruption" means the eruption, explosionor effusion of a volcano. It does not includevolcanic action if loss by volcanic action isspecifically covered in this policy;

2. "Shifting" means shifting, rising, settling, sinking,or lateral or other movement;

6. "Flood" means:3. "Earth movement" means any earth movement,including but not limited to "earthquake," landslide,mudflow, erosion, contraction or expansion,subsidence, any movement of earth resulting fromwater combining with the ground or soil, and anyother "shifting" of earth; all whether or notcombined with "flood" or "volcanic eruption." Itdoes not include sinkhole collapse if loss bysinkhole collapse is specifically covered in thispolicy;

a. Flood, surface water, waves, tides, tidal water,tidal waves, high water, and overflow of anybody of water, or their spray, all whetherdriven by wind or not;

b. Release of water held by a dam, levy or dikeor by a water or flood control device;

c. Water that backs up from a sewer or drain; or

d. Water under the ground surface pressing on,or flowing, leaking or seeping through:4. "Earthquake" means a shaking or trembling of the

earth's crust, caused by underground volcanic ortectonic forces or by breaking or "shifting" of rockbeneath the surface of the ground from naturalcauses. An "Earthquake" includes all relatedshocks and after shocks;

(1) Foundations, walls, floors or pavedsurfaces;

(2) Basements, whether paved or not; or

(3) Doors, windows or other openings.

Form IH 10 01 09 86 Printed in U.S.A. Page 2 of 2



EXCLUSION - AIRCRAFT PRODUCTS LIABILITY



This insurance does not apply to "bodily injury" or "propertydamage" in the "products-completed operations hazard"and arising out of:

3. Helicopters;

4. Gliders;

5. Missiles; or1. "Aircraft products;"6. Spacecraft.2. Reliance upon any representation or warranty made

with respect thereto; "Aircraft Products" means:

3. To any liability arising out of the "grounding" of any"aircraft," or

1. "Aircraft;" or

2. Any other goods or products, other than real property,manufactured, sold, handled or distributed, or servicesproduced or recommended by:

4. Liability assumed by you under any contract oragreement if such liability arises out of "aircraftproduct:"

a. You; ora. Designed;

b. Others trading under your name;b. Manufactured;

when used in the manufacture, repair, operation,maintenance or use of any "aircraft."c. Sold;

"Grounding" means:d. Handled; or1. The withdrawal of one or more "aircraft" from flight

operations; ore. Distributed;

By you or by others trading under your name. 2. The imposition of speed, passenger or load restrictionson "aircraft.""Aircraft" includes but is not limited to:

1. Heavier-than-air flying vehicles;

2. Lighter-than-air flying vehicles;

Form SS 05 18 07 92 Printed in U.S.A. (NS)




EXCLUSION - NUCLEAR ENERGY LIABILITY

1. This insurance does not apply:

a. To any injury or damage:

(1) With respect to which an insured under thepolicy is also an insured under a nuclearenergy liability policy issued by NuclearEnergy Liability Insurance Association,Mutual Atomic Energy Liability Underwritersor Nuclear Insurance Association ofCanada, or any of their successors, orwould be an insured under any such policybut for its termination upon exhaustion of itslimit of liability; or

(2) Resulting from the "hazardous properties" of"nuclear material" and with respect to which:

(a) Any person or organization is requiredto maintain financial protection pursuantto the Atomic Energy Act of 1954, or anylaw amendatory thereof; or

(b) The insured is, or had this policy notbeen issued would be, entitled toindemnity from the United States ofAmerica, or any agency thereof, underany agreement entered into by theUnited States of America, or any agencythereof, with any person or organization.

b. Under any Medical Payments or MedicalExpenses Coverage, to expenses incurred withrespect to "bodily injury" resulting from the"hazardous properties" of "nuclear material" andarising out of the operation of a "nuclear facility"by any person or organization.

c. To any injury or damage resulting from the"hazardous properties" of "nuclear material"; if:

(1) The "nuclear material":

(a) Is at any "nuclear facility" owned by, oroperated by or on behalf of, an insured;or

(b) Has been discharged or dispersedtherefrom;

(2) The "nuclear material" is contained in "spentfuel" or "waste" at any time possessed,handled, used, processed, stored,transported or disposed of by or on behalf ofan insured; or

(3) The injury or damage arises out of thefurnishing by any insured of any "technologyservices" in connection with the planning,construction, maintenance, operation or useof any "nuclear facility"; or

(4) The injury or damage arises out of thefurnishing by an insured of services,materials, parts or equipment in connectionwith the planning, construction,maintenance, operation or use of any"nuclear facility"; but if such facility is locatedwithin the United States of America, itsterritories or possessions or Canada, thisexclusion (4) applies only to "propertydamage" to such "nuclear facility" and anyproperty thereat.

2. As used in this exclusion:

a. "Byproduct material", "source material" and"special nuclear material" have the meaningsgiven them in the Atomic Energy Act of 1954 orin any law amendatory thereof.

b. "Computer system and network" means:

(1) Leased or owned computer hardwareincluding mobile, networked, and datastorage computing equipment;

(2) Owned or licensed software;

(3) Owned websites;

(4) Leased or owned wireless input and outputdevices; and

(5) Electronic backup facilities and data storagerepositories employed in conjunction withitems 1 through 4 above.

c. "Hazardous properties" include radioactive, toxicor explosive properties.

d. "Nuclear facility" means:

(1) Any "nuclear reactor";

(2) Any equipment or device designed or usedfor:

(a) Separating the isotopes of uranium orplutonium;

(b) Processing or utilizing "spent fuel"; or

(c) Handling, processing or packaging"waste",

of 2 Form SS 05 47 09 15

(3) Any equipment or device used for theprocessing, fabricating or alloying of "specialnuclear material" if at any time the totalamount of such material in the custody ofthe insured at the premises where suchequipment or device is located consists of orcontains more than 25 grams of plutoniumor uranium 233 or any combination thereof,or more than 250 grams of uranium 235;

(4) Any structure, basin, excavation, premisesor place prepared or used for the storage ordisposal of "waste";

and includes the site on which any of theforegoing is located, all operations conducted onsuch site and all premises used for suchoperations.

e. "Nuclear material" means "byproduct material","source material" or "special nuclear material".

f. "Nuclear reactor" means any apparatusdesigned or used to sustain nuclear fission in aself-supporting chain reaction or to contain acritical mass of fissionable material.

g. Injury or damage and "property damage" includeall forms of radioactive contamination ofproperty.

h. "Spent fuel" means any fuel element or fuelcomponent, solid or liquid, which has been usedor exposed to radiation in a "nuclear reactor".

i. "Technology services" means:

1. the following services performed for others:

a. Consulting, analysis, design, installation,training, maintenance, support andrepair of or on: software, wirelessapplications, firmware, shareware,networks, systems, hardware, devicesor components;

b. Integration of systems;

c. Processing of, management of, miningor warehousing of data;

d. Administration, management, operationor hosting of: another party's systems,technology or computer facilities;

e. Website development; website hosting;

f. Internet access services; intranet,extranet or electronic informationconnectivity services; softwareapplication connectivity services;

g. Manufacture, sale, licensing,distribution, or marketing of: software,wireless applications, firmware,shareware, networks, systems,hardware, devices or components;

h. Design and development of: code,software or programming;

i. Providing software application:services, rental or leasing;

j. Screening, selection, recruitment orplacement of candidates for temporaryor permanent employment by others asinformation technology professionals;

k. "Telecommunication services"; and

l. "Telecommunication products".

2. web-related software and connectivityservices performed for others; and

3. activities on the "named insured's""computer system and network".


Form SS 51 11 03 17 Page 1 of 1

EXCLUSION - UNMANNED AIRCRAFT (PROPERTY)This endorsement modifies insurance provided under the following:



A. COVERAGE

Paragraph A.2., Property Not Covered,Subparagraph a. is deleted and replaced with thefollowing:

a. Aircraft (including "unmanned aircraft"),automobiles, motor trucks and othervehicles subject to motor vehicleregistration.

C. DEFINITIONS

The following changes are made to Section G.,PROPERTY DEFINITIONS:


"Unmanned aircraft" means an aircraft that isnot:

a. Designed;

b. Manufactured; or

c. Modified after manufacture

to be controlled directly by a person from withinor on the aircraft and which is owned by you orowned by others but in your care, custody, orcontrol.

"Unmanned aircraft" includes equipmentdesigned for and used exclusively with the"unmanned aircraft", provided such equipment isessential for operation of the "unmannedaircraft" or for executing "unmanned aircraftoperations".


"Unmanned aircraft operations" means yourbusiness activities in support of the specificoperations listed in the Description of Businesssection of the Declarations.



(Includes copyrighted material of Insurance Services Office, Inc. with its permission)

CAP ON LOSSES FROM CERTIFIED ACTS OF TERRORISM


BUSINESS LIABILITY COVERAGE FORMOWNERS AND CONTRACTORS PROTECTIVE LIABILITY COVERAGE FORM


UMBRELLA LIABILTY PROVISIONS

A. Disclosure Of Federal Share Of Terrorism LossesThe United States Department of the Treasury willreimburse insurers for a portion of such insuredlosses, as indicated in the table below that exceedsthe applicable insurer deductible:

Calendar Year Federal Share ofTerrorism Losses

2015 85%

2016 84%

2017 83%

2018 82%

2019 81%

2020 or later 80%

However, if aggregate industry insured losses,attributable to "certified acts of terrorism" under thefederal Terrorism Risk Insurance Act, as amended(TRIA), exceed $100 billion in a calendar year, theTreasury shall not make any payment for anyportion of the amount of such losses that exceeds$100 billion. The United States government has notcharged any premium for their participation incovering terrorism losses.

B. Cap On Insurer Liability for Terrorism LossesA "certified act of terrorism" means an act that iscertified by the Secretary of the Treasury, inaccordance with the provisions of federal TerrorismRisk Insurance Act, to be an act of terrorism underTRIA. The criteria contained in TRIA for a "certifiedact of terrorism" include the following:1. The act results in insured losses in excess of $5

million in the aggregate, attributable to all typesof insurance subject to TRIA; and

2. The act results in damage within the UnitedStates, or outside the United States in the caseof certain air carriers or vessels or the premisesof an United States mission; and

3. The act is a violent act or an act that isdangerous to human life, property orinfrastructure and is committed by an individual orindividuals acting as part of an effort to coercethe civilian population of the United States or toinfluence the policy or affect the conduct of theUnited States Government by coercion.

If aggregate industry insured losses attributable to"certified acts of terrorism" under TRIA exceed $100billion in a calendar year, and we have met, or willmeet, our insurer deductible under TRIA, we shallnot be liable for the payment of any portion of theamount of such losses that exceed $100 billion. Insuch case, your coverage for terrorism losses maybe reduced on a pro-rata basis in accordance withprocedures established by the Treasury, based onits estimates of aggregate industry losses and ourestimate that we will exceed our insurer deductible.In accordance with the Treasury's procedures,amounts paid for losses may be subject to furtheradjustments based on differences between actuallosses and estimates.

C. Application Of Exclusions

The terms and limitations of any terrorism exclusion,the inapplicability or omission of a terrorismexclusion, or the inclusion of terrorism coverage, donot serve to create coverage for any loss whichwould otherwise be excluded under this CoverageForm or Policy, such as losses excluded by thePollution Exclusion, Nuclear Hazard Exclusion andthe War And Military Action Exclusion.

72 SBA AP9428

ADDITIONAL INSURED - MANAGER/LESSOR

.

001 001

04/10/19 06/25/20

POLICY NUMBER:


Form IH 12 00 11 85 T SEQ. NO. Printed in U.S.A. Page

Process Date: Expiration Date:

72 SBA AP9428

ADDITIONAL INSURED - PERSON-ORGANIZATION

.

002 001

04/10/19 06/25/20

POLICY NUMBER:




72 SBA AP9428

CONTRACTORS EQUIPMENT SCHEDULE

CONTRACTORS EQUIPMENT SCHEDULETOTAL VALUE $

ITEM DESCRIPTION OF ITEM VALUE2008 YALE FORKLIFT MODEL: GLC050VXNVSE083 $7,578SERIAL NO.: A910V02530C

003 001

04/10/19 06/25/20

POLICY NUMBER:




0010000

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY


WAGE AND HOUR CLAIMS EXPENSES -EMPLOYMENT PRACTICES LIABILITY



Exclusion B. in SECTION III - EXCLUSIONS isdeleted and replaced by the following:

B. We shall not pay "loss" in connection with any"claim" based upon, arising from, or in any wayrelated to:

1. any claims for unpaid wages (includingovertime pay), workers’ compensationbenefits, unemployment compensation,disability benefits, or social security benefits;

2. any actual or alleged violation of the WorkerAdjustment and Retraining Notification Act, theNational Labor Relations Act, theOccupational Safety and Health Act, theConsolidated Omnibus Budget ReconciliationAct of 1985, "ERISA", or any similar law; or

3. any "wage and hour violation".

Provided, however, that this Exclusion B. shallnot apply to that portion of "loss" that represents:

a. a specific amount the "insureds"become legally obligated to pay solelyfor a "wrongful act" of "retaliation"; or

b. "Claims expenses" incurred to defend a"wage and hour violation" referenced insub-paragraph 3. above subject to aSub-Limit of Liability of $ thatis part of, and not in addition to, theLimits of Liability applicable to thisCoverage Part (the Wage and HourDefense Costs Sub-Limit). Moreover:

1. SECTION VIII.I.2. of this CoveragePart notwithstanding, 100% of the"insured’s" "claims expenses"covered pursuant to this sub-paragraph b. shall be allocated tocovered "loss" until the Wage andHour Defense Costs Sub-Limit isexhausted. Once the Wage andHour Defense Costs Sub-Limit isexhausted, allocation shall continuein accordance with SECTIONVIII.I.2.;

2. the Wage and Hour Defense CostsSub-Limit is available notwithstandingthe fact that a "wage and hourviolation" is not an "employmentpractices wrongful act"; and

3. the Wage and Hour Defense CostsSub-Limit is only available for "claimexpenses" incurred to defend a "wageand hour violation" that occurred on orafter the "retroactive date" and beforethe end of the "policy period",regardless of whether any such"claim" for a "wage and hour violation"is made during the "policy period" orthe Extended Reporting Period, ifapplicable.

All other terms and conditions of this CoveragePart remain unchanged.


EMPLOYMENT PRACTICES LIABILITY COVERAGE FORM(CLAIMS MADE)

Form SS 09 01 12 14

QUICK REFERENCE

EMPLOYMENT PRACTICES LIABILITYCOVERAGE FORM (CLAIMS MADE)

READ YOUR POLICY CAREFULLY

Beginning on PageSECTION I: INSURING AGREEMENT 1

SECTION II: DEFINITIONS 1

SECTION III: EXCLUSIONS 5

SECTION IV: DISCOVERY CLAUSE 6

SECTION V: EXTENDED REPORTING PERIOD 6

SECTION VI: COVERAGE TERRITORY 6

SECTION VII: LIMITS OF LIABILITY AND DEDUCTIBLE 6

SECTION VIII: DUTIES IN THE EVENT OF CLAIM; DEFENSEAND SETTLEMENT

7

SECTION IX: CONDITIONS 9



EMPLOYMENT PRACTICES LIABILITY COVERAGE FORM(CLAIMS MADE)

NOTICE: COVERAGE PROVIDED BY THIS COVERAGE PART IS CLAIMS MADE COVERAGE. EXCEPT ASOTHERWISE SPECIFIED HEREIN: COVERAGE APPLIES ONLY TO A CLAIM FIRST MADE AGAINST THEINSUREDS DURING THE POLICY PERIOD AND WHICH HAS BEEN REPORTED TO US IN ACCORDANCEWITH THE APPLICABLE NOTICE PROVISIONS. COVERAGE IS SUBJECT TO THE INSURED’S PAYMENT OFTHE APPLICABLE DEDUCTIBLE. PAYMENTS OF CLAIM EXPENSES ARE SUBJECT TO, AND REDUCE, THEAVAILABLE LIMITS OF LIABILITY. PLEASE READ THE COVERAGE PART CAREFULLY AND DISCUSS THECOVERAGE WITH YOUR INSURANCE AGENT OR BROKER. UPON TERMINATION OF THIS COVERAGEPART, EXTENDED REPORTING PERIOD COVERAGE IS AVAILABLE.

Various provisions in this policy restrict coverage. Please read the entire policy carefully to determine your rights,duties and what is and is not covered.

Throughout this Coverage Part the words you and your refer to the "Named Insured" in the Declarations. The wordswe, us and our refer to the stock insurance company member of THE HARTFORD shown on the Declarations Page.

Words and phrases that appear in quotation marks are defined in SECTION II - DEFINITIONS of this Coverage Part.

In consideration of, and subject to, the payment of the premium by you and in reliance upon the accuracy andcompleteness of the "application", including but not limited to the statements, attachments and exhibits contained inand submitted with the "application", we agree with you, subject to all terms, exclusions and conditions of thisCoverage Part, as follows:

SECTION I - INSURING AGREEMENT

Employment Practices Liability

We shall pay "loss" on behalf of the "insureds"resulting from an "employment practices claim" firstmade against the "Insureds" during the "policy period"or Extended Reporting Period, if applicable, for an"employment practices wrongful act" by the "insureds".

SECTION II - DEFINITIONS

A. "Application" means the application for thisCoverage Part, including any materials orinformation submitted therewith or madeavailable to us during the underwritingprocess, which application shall be on file withus. Such "application" shall be deemed a partof this Coverage Part and attached hereto. Inaddition, "application" includes any warranty,representation or other statement provided tous within the past three years in connectionwith any policy or coverage part of which thisCoverage Part is a renewal or replacement.

B. "Benefits" means perquisites, fringe benefits,deferred compensation, severance pay andany other form of compensation (other than

salaries, wages, or bonuses as a componentof a front or back pay award).

C. "Claim" means any "employment practicesclaim".

D. "Claims expenses" means:

1. reasonable and necessary legal fees andexpenses, including, but not limited to, e-discovery expenses, incurred in thedefense or appeal of a "claim";

2. "Extradition costs"; or

3. the costs of appeal, attachment or similarbonds, provided that we shall have noobligation to furnish such bonds.

However, "claim expenses" shall not include:

a. salaries, wages, remuneration,overhead or benefit expensesassociated with any "insureds";

b. any fees, expenses or costs which areincurred by or on behalf of a partywhich is not a covered "insured"; or

c. any fees, expenses or costs whichwere incurred prior to the date on


Page 2 of 11 Form SS 09 01 12 14

which we received written notice of the"claim" from the "insured".

E. "Controlled partnership" means a limitedpartnership in which and so long as the "namedinsured" owns or controls, directly or indirectly,more than 50% of the limited partnershipinterest and an "insured entity" is the solegeneral partner.

F. "Damages" means the amounts, other than"claim expenses", that the "insureds" arelegally liable to pay solely as a result of a"claim" covered by this Coverage Part,including:

1. compensatory damages, including frontpay and back pay;

2. settlement amounts;

3. pre- and post-judgment interest;

4. costs awarded pursuant to judgments;

5. punitive and exemplary damages;

6. the multiple portion of any multiplieddamage award; or

7. liquidated damages under the AgeDiscrimination in Employment Act and theFamily and Medical Leave Act.

However, "damages" shall not include:

a. taxes, fines or penalties imposed bylaw;

b. non-monetary relief;

c. "Benefits";

d. future compensation for any personhired, promoted, or reinstatedpursuant to a judgment, settlement,order or other resolution of a "claim";

e. "Stock benefits";

f. costs associated with providing anyaccommodations required by theAmericans with Disabilities Act or anysimilar law; or

g. any other matters uninsurablepursuant to any applicable law;provided, however, that with respect topunitive and exemplary damages, orthe multiple portion of any multiplieddamage award, the insurability of suchdamages shall be governed by theinternal laws of any applicablejurisdiction that most favors coverageof such damages.

G. "Debtor in possession" means a "debtor inpossession" as such term is defined inChapter 11 of the United States BankruptcyCode as well as any equivalent status underany similar law.

H. "Domestic partner" means any natural personqualifying as a domestic partner under theprovisions of any applicable federal, state orlocal law or any domestic partner relationshiparrangement recognized outside of the UnitedStates and under the Human Resource policyof the "insured entity".

I. "Employee" means any natural person whowas, is or shall become a(n):

1. employee of an "insured entity" includingany part time, seasonal, temporary,leased, or loaned employee; or

2. volunteer or intern with an "insured entity".

J. "Employee data privacy wrongful act" means:

1. the failure to prevent any unauthorizedaccess to or use of data containing "PrivateEmployment Information" of any"Employee" or applicant for employmentwith the "Insured Entity" including any suchfailure that directly results in a violation withrespect to the privacy of such"Employee’s" or applicant’s medicalinformation under the Health InsurancePortability and Accountability Act (HIPAA)or credit information under the Fair CreditReporting Act (FCRA); or

2. the failure to notify any "employee" orapplicant for employment with the "insuredentity" of any actual or potentialunauthorized access to or use of "privateemployment information" of any "employee"or applicant for employment with the"insured entity", if such notice was requiredby state or federal regulation or statute.

K. "Employment practices claim" means any:

1. written demand for monetary damages orother civil non-monetary relief commencedby the receipt of such demand, including,without limitation, a written demand foremployment reinstatement;

2. civil proceeding, including an arbitration orother alternative dispute resolutionproceeding, commenced by the service ofa complaint, filing of a demand forarbitration, or similar pleading; or

3. formal administrative or regulatoryproceeding, including, without limitation, aproceeding before the Equal EmploymentOpportunity Commission or similargovernmental agency, commenced by thefiling of a notice of charges, formalinvestigative order or similar document;

by or on behalf of an "employee", an applicantfor employment with an "insured entity", or an"independent contractor".


Form SS 09 01 12 14 Page 3 of 11

"Employment practices claim" also means thereceipt of a notice of violation, order to showcause, or a written demand for monetary orinjunctive relief that is the result of an auditconducted by the United States Office ofFederal Contract Compliance Programs.

"Employment practices claim" also means awritten request to the "insureds" to toll or waivea statute of limitations regarding a potential"Employment practices claim" as describedabove. Such "claim" shall be commenced bythe receipt of such request.

However, "employment practices claim" shallnot include any labor or grievance proceedingor arbitration that is subject to a collectivebargaining agreement.

L. "Employment practices wrongful act" means:

1. wrongful dismissal, discharge, ortermination of employment (includingconstructive dismissal, discharge, ortermination), wrongful failure or refusal toemploy or promote, wrongful discipline ordemotion, failure to grant tenure, negligentemployment evaluation, or wrongfuldeprivation of career opportunity;

2. sexual or other workplace harassment,including bullying in the workplace, quidpro quo and hostile work environment;

3. employment discrimination, includingdiscrimination based upon age, gender,race, color, creed, marital status, sexualorientation or preference, gender identityor expression, genetic makeup, or refusalto submit to genetic makeup testing,pregnancy, disability, HIV or other healthstatus, Vietnam Era Veteran or othermilitary status, or other protected statusestablished under federal, state, or locallaw;

4. "Retaliation";

5. breach of any oral, written, or impliedemployment contract, including, withoutlimitation, any obligation arising from apersonnel manual, employee handbook, orpolicy statement; or

6. violation of the Family and Medical LeaveAct.

"Employment practices wrongful act" alsomeans the following, but only when alleged inaddition to or as part of any "employmentpractices wrongful act" described above:

a. employment-related wrongful inflictionof mental anguish or emotionaldistress;

b. failure to create, provide for or enforceadequate or consistent employment-related policies and procedures;

c. negligent retention, supervision, hiringor training;

d. employment-related invasion ofprivacy, defamation, ormisrepresentation; or

e. an "employee data privacy wrongfulact".

M. "ERISA" means the Employee RetirementIncome Security Act of 1974.

N. "Extradition costs" means reasonable andnecessary fees and expenses directly resultingfrom a "claim" in which an "insured person"lawfully opposes, challenges, resists ordefends against any request for the extraditionof such "insured person" from his or hercurrent country of employ and domicile to anyother country for trial or otherwise to answerany criminal accusation, including the appealof any order or other grant of extradition ofsuch "insured person".

O. "Financial insolvency" means the status of an"insured entity" as a result of:

1. the appointment of any conservator,liquidator, receiver, rehabilitator, trustee, orsimilar official to control, supervise,manage or liquidate such "insured entity";or

2. such "insured entity" becoming a "debtor inpossession".

P. "Independent contractor" means any naturalperson working in the capacity of anindependent contractor pursuant to an"independent contractor agreement".

Q. "Independent contractor agreement" meansany express contract or agreement betweenan "independent contractor" and an "insuredentity" specifying the terms of the "insuredentity’s" engagement of such "independentcontractor".

R. "Insured entity" means:

1. the "named insured"; or

2. any "subsidiary".

"Insured entity" shall include any such entity asa "debtor in possession".

"Insured entity" shall also include any suchentity in its capacity as a general partner of a"controlled partnership".

S. "Insured person" means any:

1. "Employee";

2. "Manager"; or


Page 4 of 11 Form SS 09 01 12 14

3. regarding the Employment PracticesLiability Insuring Agreement, an"independent contractor" provided thatwithin 30 days of an "employmentpractices claim" having been made againstsuch "independent contractor" that the"insured entity" agrees in writing toindemnify such "independent contractor"for any "loss" arising out of such "claim".

T. "Insureds" means any:

1. "Insured entity"; or

2. "Insured person".

U. "Interrelated wrongful acts" means "wrongfulacts" that have as a common nexus any fact,circumstance, situation, event, transaction,goal, motive, methodology, or cause or seriesof causally connected facts, circumstances,situations, events, transactions, goals,motives, methodologies or causes.

V. "Loss" means "claim expenses" and"damages".

W. "Manager" means any natural person whowas, is or shall become a(n):

1. duly elected or appointed director, advisorydirector, board observer, advisory boardmember, officer, member of the board ofmanagers or management committeemember of an "insured entity";

2. "Employee" in his/her capacity as legalcounsel to an "insured entity"; or

3. executive of an "insured entity" createdoutside the United States to the extent thatsuch executive holds a position equivalentto those described in 1. or 2. above.

X. "Named insured" means the individuals,partnerships or corporations designated in theDeclarations.

Y. "Notice manager" means the natural personsin the offices of the chief executive officer,chief financial officer, general counsel, riskmanager, human resources manager or anyequivalent position to the foregoing, of an"Insured Entity".

Z. "Policy period" means the period from theEffective Date to the Expiration Date set forthin the Declarations or any earlier cancellationdate.

AA. "Private employment information" means anyinformation regarding an "employee" orapplicant for employment with the "insuredentity", which is collected or stored by an"insured" for the purposes of establishing,maintaining or terminating an employmentrelationship.

BB."Retaliation" means adverse treatment of an"employee" or "independent contractor" basedupon such person:1. exercising any rights under law, including,

without limitation, rights under any workerscompensation laws, the Family andMedical Leave Act, "ERISA", or theAmericans with Disabilities Act;

2. refusing to violate any law;3. assisting, testifying, or cooperating with a

proceeding or investigation regardingalleged violations of law by any "insured";

4. disclosing or threatening to disclosealleged violations of law to a superior or toany governmental agency; or

5. filing any whistle blower claim against any"insured" under the federal False ClaimsAct, the Sarbanes-Oxley Act of 2002, orany similar law.

CC."Stock benefits" means any offering, plan oragreement between an "insured entity" andany "employee" that grants stock, stockoptions or stock appreciation rights in the"insured entity" to such person, including,without limitation, restricted stock or any otherstock grant. "Stock benefits" shall not includeemployee stock ownership plans or employeestock purchase plans.

DD."Subsidiary" means any:1. corporation in which and so long as the

"named insured" owns or controls, directlyor indirectly, more than 50% of theoutstanding securities representing theright to vote for the election of the board ofdirectors of such corporation;

2. limited liability company in which and solong as the "named insured" owns orcontrols, directly or indirectly, the right toelect, appoint or designate more than 50%of such entity’s managing members;

3. a "controlled partnership";4. corporation operated as a joint venture in

which and so long as the "named insured"owns or controls, directly or indirectly,exactly 50% of the issued and outstandingvoting stock and which, pursuant to awritten agreement with the owner(s) of theremaining issued and outstanding votingstock of such corporation, the "namedinsured" solely controls the managementand operation of such corporation; or

5. foundation, charitable trust or politicalaction committee in which and so long assuch entity or organization is controlled bythe "named insured" or any "subsidiary" asdefined in 1. through 4. above.


Form SS 09 01 12 14 Page 5 of 11

EE. "Wage and hour violation" means any actual oralleged violation of the duties andresponsibilities that are imposed upon an"insured" by any federal, state or local law orregulation anywhere in the world, including butnot limited to the Fair Labor Standards Act orany similar law (except the Equal Pay Act),which govern wage, hour and payroll practices.Such practices include but are not limited to:1. the calculation and payment of wages,

overtime wages, minimum wages andprevailing wage rates;

2. the calculation and payments of benefits;3. the classification of any person or

organization for wage and hour purposes;4. reimbursing business expenses;5. the use of child labor; or6. garnishments, withholdings and other

deductions from wages.FF. "Wrongful act" means any actual or alleged

"employment practices wrongful act".SECTION III - EXCLUSIONS

A. We shall not pay "Loss":1. for bodily injury, sickness, disease, death,

false arrest or imprisonment, abuse ofprocess, malicious prosecution, trespass,nuisance or wrongful entry or eviction, or forinjury to or destruction of any tangibleproperty including loss of use or diminutionof value thereof; provided, however, thatthis exclusion shall not apply to that portionof "loss" that directly results from mentalanguish or emotional distress when allegedin connection with an otherwise covered"employment practices wrongful act";

2. for any actual or alleged "wrongful act" by"insured persons" of any "subsidiary" intheir capacities as such, or by any"subsidiary", if such "wrongful act" actuallyor allegedly occurred when such entity wasnot a "subsidiary";

3. in connection with any "claim" based upon,arising from, or in any way related to any:a. prior or pending demand, suit, or

proceeding against any "insured" asof, or

b. audit initiated by the United StatesOffice of Federal Contract CompliancePrograms before,

the effective date of the first EmploymentPractices Liability Coverage Part issued andcontinuously renewed by us, or the same orsubstantially similar fact, circumstance, orsituation underlying or alleged in suchdemand, suit, proceeding, or audit;

4. in connection with any "claim" based upon,arising from, or in any way related to anyfact, circumstance, or situation that, beforethe Effective Date in the Declarations, wasthe subject of any notice given under anyother employment practices liability policy,management liability policy or otherinsurance policy which insures "wrongfulacts" covered under this Coverage Part;

5. in connection with any "claim" based upon,arising from, or in any way related to theliability of others assumed by an "insured"under any contract or agreement;provided, however, this exclusion shall notapply to liability that would have beenincurred in the absence of such contract oragreement;

6. for breach of any "independent contractoragreement"; or

7. for a lockout, strike, picket line, hiring ofreplacement workers or similar action inconnection with any labor dispute, labornegotiation or collective bargainingagreement.

B. We shall not pay "loss" in connection with any"claim" based upon, arising from, or in any wayrelated to:

1. any claims for unpaid wages (includingovertime pay), workers’ compensationbenefits, unemployment compensation,disability benefits, or social securitybenefits;

2. any actual or alleged violation of theWorker Adjustment and RetrainingNotification Act, the National LaborRelations Act, the Occupational Safety andHealth Act, the Consolidated OmnibusBudget Reconciliation Act of 1985,"ERISA", or any similar law; or

3. any "wage and hour Violation"

Provided, however, that this exclusion B. shallnot apply to that portion of "loss" thatrepresents a specific amount the "insureds"become legally obligated to pay solely for a"wrongful act" of "retaliation".

C. We shall not pay "loss" in connection with any"claim" based upon, arising from, or in any wayrelated to liability incurred for breach of anyoral, written, or implied employment contract;provided, however, that this exclusion shall notapply to liability that would have been incurredin the absence of such contract nor shall itapply to the portion of "loss" representing"claim expenses" incurred to defend againstsuch liability.


Page 6 of 11 Form SS 09 01 12 14

SECTION IV - DISCOVERY CLAUSE

If, during the "policy period", the "insureds"become aware of a "wrongful act" that mayreasonably be expected to give rise to a "claim",and, if written notice of such "wrongful act" is givento us during the "policy period", including thereasons for anticipating such a "claim", the natureand date of the "wrongful act", the identity of the"insureds" allegedly involved, the alleged injuriesor damages sustained, the names of potentialclaimants, and the manner in which the "insureds"first became aware of the "wrongful act", then any"claim" subsequently arising from such "wrongfulact" shall be deemed to be a "claim" first madeduring the "policy period" on the date that wereceive the above notice.

SECTION V - EXTENDED REPORTING PERIODSubject to provisions A. through G. below, if thisCoverage Part is canceled or non-renewed otherthan for non-payment of premium, you shall havethe right to purchase an extended period to report"claims" under this Coverage Part for any "claim"first made during the period of time set forth in theSupplemental Extended Reporting PeriodEndorsement, and following the effective date ofsuch cancellation or nonrenewal and reported inwriting during such period or within sixty (60) daysthereafter, but only with respect to any "wrongfulact" which takes place prior to the effective date ofsuch cancellation or nonrenewal.A. The Extended Reporting Period shall be

effective only upon the payment of anadditional premium. The additional premiumwill be 200% of the annual advance premiumfor this coverage. At the commencement ofthe Extended Reporting Period, the entirepremium thereof shall be deemed fully earnedand non-refundable.

B. The quotation of a different premium ordeductible or limit of liability for renewal is nota cancellation or refusal to renew for thepurposes of this provision.

C. You shall have no right to purchase theExtended Reporting Period, unless you havesatisfied all conditions of the Coverage Partand all premiums and deductibles outstandinghave been paid.

D. Your right to purchase the Extended ReportingPeriod shall terminate unless written noticetogether with full payment of the premium forthe Extended Reporting Period is given to usno later than sixty (60) days following theeffective date of cancellation or nonrenewal.

E. The fact that the period of time to report "claims"is extended by virtue of the Extended ReportingPeriod shall not increase or reinstate the Limit ofLiability stated in the Declarations.

F. Extended Reporting Periods do not extend the"policy period" or change the scope of coverageprovided. They apply only to "wrongful acts"that occur before the end of the "policy period".

"Claims" for such injury which are first receivedwithin sixty (60) days after the "policy period",or during the Extended Reporting Period if ineffect, will be deemed to have been made onthe last date of the "policy period".

G. Once in effect, Extended Reporting Periodsmay not be canceled by us.

SECTION VI -COVERAGE TERRITORY

Coverage under this Coverage Part appliesworldwide, provided that the "claim" is made andany legal action is pursued within the UnitesStates, its territories, possessions orcommonwealths, or Canada.

SECTION VII - LIMITS OF LIABILITY ANDDEDUCTIBLE

A. The maximum we will pay for each "claim"under this Coverage Part is the Each ClaimLimit of Liability stated in the Declarations,subject to the Annual Aggregate Limit ofLiability stated in the Declarations.

The maximum we will pay for all "claims"under this Coverage Part is the AnnualAggregate Limit of Liability stated in theDeclarations, regardless of the number of"claims".

If the applicable Limit of Liability for thisCoverage Part is exhausted, the premium forthis Coverage Part shall be deemed fullyearned. "Claim expenses" shall be part of, andnot in addition to, the Limits of Liability.Payment of "claim expenses" by us shallreduce each Limit of Liability.

B. We shall pay "loss" in excess of the Deductibleapplicable to each "claim" as specified on theDeclarations.

C. All Deductibles shall be borne by the"insureds" at their own risk; they shall not beinsured.

D. The Deductible shall apply to "claim expenses"covered hereunder. If, any "claim expenses"are incurred by us prior to the "insured’s"complete payment of the Deductible, then the"insureds" shall reimburse us therefor uponour request.

E. No Deductible shall apply to "loss" incurred byany "insured person" that an "insured entity" isnot permitted by common or statutory law toindemnify, or is permitted or required toindemnify, but is not able to do so by reason of"financial insolvency".


Form SS 09 01 12 14 Page 7 of 11

F. If an "insured entity" is permitted or required bycommon or statutory law to indemnify an"insured person" for any "loss", or to advance"claim expenses" on their behalf, and does notdo so other than because of "financialinsolvency", then such "insured entity" and the"named insured" shall reimburse and hold usharmless for our payment or advancement ofsuch "loss" up to the amount of the Deductiblethat would have applied if such indemnificationhad been made.

G. If a "subsidiary" is unable to indemnify an"insured person" for any "loss", or to advance"claim expenses" on their behalf, because of"financial insolvency", then the "namedinsured" shall reimburse and hold us harmlessfor our payment or advancement of such "loss"up to the amount of the applicable Deductiblethat would have applied if such indemnificationhad been made.

The Limit of Liability for this Coverage Partapplies separately to each consecutive annualperiod and to any remaining period of lessthan twelve (12) months starting with thebeginning of the "policy period" shown in theDeclarations, unless the "policy period" isextended after issuance for an additionalperiod of less than twelve (12) months. In thatcase, the additional period will be deemed partof the last preceding period for purposes ofdetermining the Limit of Liability.

SECTION VIII - DUTIES IN THE EVENT OF CLAIM;DEFENSE AND SETTLEMENT

A. We shall have the right and duty to defend"claims" covered under this Coverage Part,even if such "claim" is groundless, false orfraudulent, provided that:

1. the "insureds" give notice to us inaccordance with the applicable noticeprovisions; and

2. such "claim" does not involve allegations,in whole or in part, of a "wage and hourviolation".

For any "claim" involving allegations, in wholeor in part, of a "wage and hour violation", itshall be the duty of the "insureds", and not ourduty, to defend such "claim".

B. If we have the duty to defend a "claim", ourduty to defend such "claim" shall cease uponexhaustion of any applicable Limit of Liability.

C. The "insureds" shall not admit or assume anyliability, make any settlement offer or enter intoany settlement agreement, stipulate to anyjudgment, or incur any "claim expenses"regarding any "claim" without our prior writtenconsent, such consent not to be unreasonablywithheld. We shall not be liable for any

admission, assumption, settlement offer oragreement, stipulation, or "claim expenses" towhich we have not consented.

D. We shall have the right to associate ourself inthe defense and settlement of any "claim" thatappears reasonably likely to involve thisCoverage Part. We may make anyinvestigation we deem appropriate inconnection with any "claim". We may, with thewritten consent of the "insureds", settle any"claim" for a monetary amount that we deemreasonable.

E. The "insureds" shall give to us all informationand cooperation as we may reasonablyrequest. However, if we are, in our solediscretion, able to determine coveragefor cooperating "insureds", the failure ofone "insured person" to cooperate with us shallnot impact coverage provided to cooperating"insureds".

F. With respect to a covered "claim" for which wedo not have the duty to defend, we shalladvance "claim expenses" in accordance withSection VIII I. that we believe to be coveredunder this Coverage Part until a differentallocation is negotiated, arbitrated or judiciallydetermined.

G. Required Notice to Us

As a condition precedent to coverage underthis Coverage Part, the "insureds" shall give uswritten notice of any "claim" as soon aspracticable after a "notice manager" becomesaware of such "claim", but in no event laterthan:

1. if this Coverage Part expires or isotherwise terminated without beingrenewed with us, ninety (90) days after theeffective date of said expiration ortermination; or

2. subject to SECTION V, the expiration ofthe Extended Reporting Period, ifapplicable;

provided, however, that if the Coverage Part iscancelled for non-payment of premium, the"insured" will give us written notice of such"claim", prior to the effective date ofcancellation.

However, with regard to any "employmentpractices claim" which is brought as a formaladministrative or regulatory proceeding,including, without limitation, a proceedingbefore the Equal Employment OpportunityCommission or similar governmental agency,commenced by the filing of a notice ofcharges, formal investigative order or similardocument, as a condition precedent tocoverage under this Coverage Part the


Page 8 of 11 Form SS 09 01 12 14

"insureds" shall give us written notice of any"claim" as soon as practicable after a "noticemanager" becomes aware of such "claim", butin no event later than:

3. if this Coverage Part is renewed, no morethan 180 days after a "notice manager"becomes aware of such "claim"; or

4. if this Coverage Part expires or isotherwise terminated without beingrenewed with us, ninety (90) days after theeffective date of said expiration ortermination; or

5. subject to SECTION V, the expiration ofthe Extended Reporting Period, ifapplicable;

provided, if the Coverage Part is cancelled fornon-payment of premium, the "insured" willgive us written notice of such "claim", prior tothe effective date of cancellation.

H. Subrogation

1. We shall be subrogated to all of the"insureds’" rights of recovery regarding anypayment of "loss" by us under thisCoverage Part. The "insureds" shallexecute all papers required and doeverything necessary to secure andpreserve such rights, including theexecution of any documents necessary toenable us to effectively bring suit in thename of the "insureds". The "insureds"shall do nothing to prejudice our positionor any potential or actual rights ofrecovery.

2. We shall not exercise our rights ofsubrogation against an "insured person"under this Coverage Part unless such"insured person" has:

a. obtained any personal profit,remuneration or advantage to whichsuch "insured person" was not legallyentitled, or

b. committed a criminal or deliberatelyfraudulent act or omission or any willfulviolation of law,

if a judgment or other final adjudicationestablishes such personal profit,remuneration, advantage, act, omission, orviolation.

I. Allocation

Where "insureds" who are afforded coveragefor a "claim" incur an amount consisting ofboth "loss" that is covered by this CoveragePart and also loss that is not covered by thisCoverage Part, because such "claim" includesboth covered and uncovered matters, thencoverage shall apply as follows:

1. with respect to a covered "claim" for whichwe have the duty to defend:

a. 100% of the "insured’s" "claimexpenses" shall be allocated tocovered "loss"; and

b. All other "loss" shall be allocatedbetween covered "loss" and non-covered loss based upon the relativelegal exposure of all parties to suchmatters.

2. with respect to a covered "claim" for whichwe do not have the duty to defend, all"loss" shall be allocated between covered"loss" and non-covered loss based uponthe relative legal exposure of all parties tosuch matters.

SECTION IX - CONDITIONS

A. Coverage Part Priority; Headings

If any provision in this Coverage Part isinconsistent or in conflict with the terms andconditions of any provisions in this Policy, theterms and conditions of this Coverage Partshall control only for purposes of determiningcoverage hereunder. The headings of thevarious sections of this Coverage Part areintended for reference only and shall not bepart of the terms and conditions of coverage.

B. Notice Addresses

1. All notices to the "insureds" shall be sentto the first "named insured" at the addressspecified in the Declarations.

2. All notices to us shall be sent to theaddress specified in the Declarations. Anysuch notice shall be effective upon receiptby us at such address.

C. Spousal/Domestic Partner LiabilityCoverage

Coverage shall apply to the lawful spouse or"domestic partner" of an "insured person" for a"claim" made against such spouse or"domestic partner", provided that:

1. such "claim" arises solely out of:

a. such person’s status as the spouse or"domestic partner" of an "insuredperson"; or

b. such spouse or "domestic partner’s"ownership of property sought asrecovery for a "wrongful act";

2. the "insured person" is named in such"claim" together with the spouse or"domestic partner"; and

3. coverage of the spouse or "domesticpartner" shall be on the same terms andconditions, including any applicable


Form SS 09 01 12 14 Page 9 of 11

Deductible , that applies to coverage of the"insured person" for such "claim".No coverage shall apply to any "claim" fora "wrongful act" of such spouse or"domestic partner".

D. Estates and Legal RepresentativesIn the event of the death, incapacity orbankruptcy of an "insured person", any "claim"made against the estate, heirs, legalrepresentatives or assigns of such "insuredperson" for a "wrongful act" of such "insuredperson" shall be deemed to be a "claim" madeagainst such "insured person". No coverageshall apply to any "claim" for a "wrongful act" ofsuch estate, heirs, legal representatives orassigns.

E. Minimum StandardsIn the event that there is an inconsistencybetween:1. the terms and conditions that are required

to meet minimum standards of a state’s law(pursuant to a state amendatoryendorsement attached to this CoveragePart ), and

2. any other term or condition of this CoveragePart,

it is understood and agreed that, wherepermitted by law, we shall apply those termsand conditions of 1. or 2. above that are morefavorable to the "insured".

F. Other Insurance1. The coverage provided under this

Coverage Part for any "employmentpractices claim" shall be primary.

2. Notwithstanding the above, the coverageprovided under this Coverage Part for any"employment practices claim" madeagainst a temporary, leased or loaned"employee" or an "independent contractor"shall be excess of the amount of anydeductible, retention and limits of liabilityunder any other policy or policiesapplicable to such "claim", whether suchother policy or policies are stated to beprimary, contributory, excess, contingentor otherwise, unless such other insuranceis written specifically excess of this Policyby reference in such other policy orpolicies to this Policy's Policy Number.

G. Interrelationship of ClaimsAll "claims" based upon, arising from or in anyway related to the same "wrongful act" or"interrelated wrongful acts" shall be deemed tobe a single "claim" for all purposes under thisCoverage Part first made on the earliest datethat:

1. any of such "claims" was first made,regardless of whether such date is beforeor during the "policy period";

2. notice of any "wrongful act" describedabove was given to us under thisCoverage Part pursuant to Sections IV orVIII; or

3. notice of any "wrongful act" describedabove was given under any priorinsurance policy.

H. Deductible Waiver

Regarding a "claim" that is a class action civilproceeding, no Deductible shall apply to "claimexpenses" incurred in connection with such"claim", and we shall reimburse the "insureds"for any covered "claim expenses" paid by the"insureds" within the Deductible otherwiseapplicable to such "claim", if a:

1. final adjudication with prejudice pursuantto a trial, motion to dismiss or motion forsummary judgment; or

2. complete and final settlement withprejudice;

establishes that none of the "insureds" in such"claim" are liable for any "loss".

I. Application

1. The "insureds" represent that theDeclarations and statements contained inthe "application" are true, accurate andcomplete. This Coverage Part is issued inreliance upon the "application".

2. If the "application" contains intentionalmisrepresentations or misrepresentationsthat materially affect the acceptance of therisk by us no coverage shall be affordedunder this Coverage Part for any"insureds" who knew on the Effective Dateof this Coverage Part of the facts that wereso misrepresented, provided that:

a. knowledge possessed by any "insuredperson" shall not be imputed to anyother "insured person"; and

b. knowledge possessed by any of yourchief executive officer, generalcounsel, chief financial officer, humanresources director or any positionequivalent to the foregoing of the"named insured", or anyone signingthe "application", shall be imputed toall "insured entities". No otherperson’s knowledge shall be imputedto an "insured entity".


Page 10 of 11 Form SS 09 01 12 14

J. Changes in Exposure

1. Acquisitions or Created Subsidiaries

If, before or during the "policy period", any"insured entity" acquires or creates a"subsidiary", then such acquired or createdentity and its subsidiaries, and any naturalpersons that would qualify as "insuredpersons" thereof, shall be "insureds" to theextent such entities and persons wouldotherwise qualify as "insureds" under thisCoverage Part,, but only for "wrongfulacts" occurring after such acquisition orcreation. No coverage shall be availablefor any "wrongful act" of such "insureds"occurring before such acquisition orcreation, or for any "interrelated wrongfulacts" thereto.

However, if the fair value of the assets ofany such acquired or created entityexceed 25% of the total assets of the"named insured" as reflected in its mostrecent consolidated financial statementsprior to such acquisition or creation, then,as a condition precedent to coveragehereunder, the "insureds" shall give uswritten notice and full, written details of theacquisition or creation as soon aspracticable (but, in all cases, within ninety(90) days of such acquisition or creation).There shall be no coverage under anyrenewal or replacement of this CoveragePart for any such new "subsidiary" and itssubsidiaries, and any natural persons thatwould qualify as "insured persons" thereof,unless the "insureds" comply with theterms of this provision.

2. Mergers

If, before or during the "policy period", any"insured entity" merges with another entitysuch that the "insured entity" is thesurviving entity, then such merged entityand its subsidiaries, and any naturalpersons that would qualify as "insuredpersons" thereof, shall be "insureds" to theextent such entities and persons wouldotherwise qualify as "insureds" under thisCoverage Part, but only for "wrongful acts"occurring after such merger. No coverageshall be available for any "wrongful act" ofsuch "insureds" occurring before suchmerger or for any "interrelated wrongfulacts" thereto.

However, if the fair value of the assets ofany newly merged entity exceed 25% ofthe total assets of the "named insured" asreflected in its most recent consolidatedfinancial statements prior to such merger,

then, as a condition precedent to coveragehereunder, the "insureds" shall give uswritten notice and full, written details of themerger as soon as practicable (but, in allcases, within ninety (90) days of suchmerger). There shall be no coverageunder any renewal or replacement of thisCoverage Part for any newly merged entityor any of its subsidiaries, and any naturalpersons that would qualify as "insuredpersons" thereof, unless the "insureds"comply with the terms of this provision.

3. Takeover of Named Insured

If, before or during the "policy period":

a. the "named insured" merges into orconsolidates with another entity suchthat the "named insured" is not thesurviving entity; or

b. more than 50% of the securitiesrepresenting the right to vote for the"named insured's" board of directorsor managers is acquired by anotherperson or entity, group of persons orentities, or persons and entities actingin concert,

then coverage shall continue under thisCoverage Part, but only for "wrongful acts"occurring before any such transaction. Nocoverage shall be available for any"wrongful act" occurring after suchtransaction. Upon such transaction, thisCoverage Part shall not be cancelled andthe entire premium for this Coverage Partshall be deemed fully earned. The"insured" shall give us written notice andfull, written details of such transaction assoon as practicable (but, in all cases,within ninety (90) days of suchtransaction). If any transaction describedherein occurs, then we will not beobligated to offer any renewal orreplacement of this Coverage Part.

4. Loss of Subsidiary Status

If, before or during the "policy period", anyentity ceases to be a "subsidiary", thencoverage shall be available under thisCoverage Part for such "subsidiary" and its"insured persons", but only for a "wrongfulact" of such "insureds" occurring beforesuch transaction. No coverage shall beavailable for any "wrongful act" of such"insureds" occurring after suchtransaction.

K. References To Laws

1. Wherever this Coverage Part mentionsany law, including, without limitation, anystatute, Act or Code of the United States,


Form SS 09 01 12 14 Page 11 of 11

such mention shall be deemed to includeall amendments of, and all rules orregulations promulgated under, such law.

2. Wherever this Coverage Part mentionsany law or laws, including, withoutlimitation, any statute, Act or Code of theUnited States, and such mention isfollowed by the phrase "or any similar law",such phrase shall be deemed to include allsimilar laws of all jurisdictions throughoutthe world, including, without limitation,statutes and any rules or regulationspromulgated under such statutes as wellas common law.

L. Action Against Us

1. No action shall be taken against us unlessthere shall have been full compliance withall the terms and conditions of thisCoverage Part.

2. No person or organization shall have anyright under this Coverage Part to join us asa party to any "claim" against the"insureds" nor shall we be impleaded bythe "insureds" in any such "claim".

M. Entire Agreement

This Coverage Part, the "application" and anywritten endorsements attached hereto, alongwith the Declarations constitute the entireagreement between you and us relating to thisCoverage Part’s insurance.

N. Bankruptcy or Insolvency

Bankruptcy or insolvency of any "insureds"shall not relieve us of any of our obligationsunder this Coverage Part.

O. Authorization of First Named Insured

The first "named insured" shall act on behalf ofall "Insureds" with respect to all matters underthis Coverage Part, including, withoutlimitation, giving and receiving of noticesregarding "claims", cancellation, election of theExtended Reporting Period, payment ofpremiums, receipt of any return premiums, andacceptance of any endorsements to thisCoverage Part.

P. When We Do Not Renew

1. If we decide not to renew this CoveragePart, we will mail or deliver to the first"named insured" shown in theDeclarations written notice of thenonrenewal not less than thirty (30) daysbefore the expiration date.

2. If notice is mailed, proof of mailing will besufficient proof of notice.

3. Any state amendatory endorsementchanging Nonrenewal Conditions for anypart of this policy shall also apply to thisCoverage Part.



THIRD PARTY LIABILITY ENDORSEMENT - EMPLOYMENTPRACTICES LIABILITY



I. SECTION I - INSURING AGREEMENT of thisCoverage Part is amended to include thefollowing:

Third Party Liability

We shall pay "loss" on behalf of the "insureds"resulting from a "third party claim" first madeagainst the "insureds" during the "policy period"or the Extended Reporting Period, if applicable,for a "third party wrongful act" by the "insureds."

II. SECTION II - DEFINITIONS of this CoveragePart is amended in the following manner:

A. The definition of "claim" is amended toinclude the following:

"Claim" also means any "third party claim."

B. The definition of "wrongful act" is amendedto include the following:

"Wrongful act" also means any actual oralleged "third party wrongful act".

C. The following definitions are added:

"Third party" means any natural person whois a customer, vendor, service provider orother business invitee of an "insured entity"."Third party" shall not include "employees".

"Third party claim" means any:

1. written demand for monetary damagesor other civil non-monetary reliefcommenced by the receipt of suchdemand;

2. civil proceeding, including an arbitrationor other alternative dispute resolutionproceeding, commenced by the serviceof a complaint, filing of a demand forarbitration, or similar pleading; or

3. formal administrative or regulatoryproceeding commenced by the filing of anotice of charges, formal investigativeorder or similar document;

by or on behalf of a "third party".

"Third party claim" also means a writtenrequest to the "insureds" to toll or waive astatute of limitations regarding a potential"third party claim" as described above.Such "claim" shall be commenced by thereceipt of such request.

"Third party wrongful act" means:

1. discrimination against a "third party"based upon age, gender, race, color,national origin, religion, creed, maritalstatus, sexual orientation or preference,pregnancy, disability, HIV or otherhealth status, Vietnam Era Veteran orother military status, or other protectedstatus established under federal, stateor local law; or

2. sexual harassment or other harassmentof a "third party", including unwelcomesexual advances, requests for sexualfavors or other conduct of a sexualnature.

III. The following exclusion is added to SECTION III- EXCLUSIONS:

We shall not pay "loss" in connection with any"third party claim" based upon, arising from or inany way related to any price discrimination orviolation of any anti-trust law or any similar lawdesigned to protect competition or prevent unfairtrade practices.




RETROACTIVE DATE ENDORSEMENT - EMPLOYMENTPRACTICES LIABILITY



I. SECTION I - INSURING AGREEMENT of thisCoverage Part is amended to include thefollowing:

This Coverage Part applies only to "claims" for"wrongful acts" that occurred on or after the"retroactive date" set forth in the Declarationsand before the end of the "policy period",regardless of whether such "claim" is madeduring the "policy period" or the ExtendedReporting Period, if applicable.

II. The following definition is added to SECTION II -DEFINITIONS of this Coverage Part:

"Retroactive date" means the date specified inthe Declarations. If no date is specified, the"retroactive date" will be the same as theEffective Date of this Coverage Part.



LOSS PAYABLE PROVISIONS


COMMON POLICY CONDITIONSSTANDARD PROPERTY COVERAGE FORM


The following is added to the Standard or Special PropertyCoverage Form PROPERTY LOSS CONDITION, asshown in the Declarations by description of location,property, name and address of loss payee and thefollowing applicable Loss Payable Provision (A, B or C):

c. If we deny your claim because of your acts orbecause you have failed to comply with theterms of this policy, the Loss Payee will stillhave the right to receive loss payment if theLoss Payee:

A. LOSS PAYABLE (1) Pays any premium due under this policyat our request if you have failed to do so;For Covered Property in which both you and a Loss

Payee shown in the Declarations have an insurableinterest, we will:

(2) Submits a signed, sworn proof of losswithin 60 days after receiving notice fromus of your failure to do so; and1. Adjust losses with you; and

(3) Has notified us of any change inownership, occupancy or substantialchange in risk known to the Loss Payee.

2. Pay any claim for loss or damage jointly to youand the Loss Payee, as interests may appear.

B. LENDER'S LOSS PAYABLEAll the terms of the Property Coverage Formwill then apply directly to the Loss Payee.1. The Loss Payee shown in the Declarations is a

creditor (including a mortgageholder or trustee)with whom you have entered a contract for thesale of Covered Property, whose interest in thatCovered Property is established by such writtencontracts as:

d. If we pay the Loss Payee for any loss ordamage and deny payment to you because ofyour acts or because you have failed tocomply with the terms of this policy:

(1) The Loss Payee's rights will betransferred to us to the extent of theamount we pay; and

a. Warehouse receipts;

b. A contract for deed;

c. Bills of lading; or (2) The Loss Payee's right to recover the fullamount of the Loss Payee's claim will notbe impaired.

d. Financing statements.

2. For Covered Property in which both you and aLoss Payee have insurable interest: At our option, we may pay to the Loss Payee the

whole principal on the debt plus any accruedinterest. In this event, you will pay yourremaining debt to us.

a. We will pay for covered loss or damage toeach Loss Payee in their order of precedence,as interests may appear.

3. If we cancel this policy, we will give written noticeto the Loss Payee at least:

b. The Loss Payee has the right to receive losspayment even if the Loss Payee has

a. 10 days before the effective date ofcancellation if we cancel for your nonpaymentof premium; or

started foreclosure for similar action on theCovered Property.

Form SS 12 12 03 92 Printed in U.S.A. (NS) Page 1 of 2


b. 30 days before the effective date ofcancellation if we cancel for any other reason.

b. Pay any claim for loss or damage jointly toyou and the Loss Payee, as interests mayappear.4. If we do not renew this policy, we will give written

notice to the Loss Payee at least 10 days beforethe expiration date of this policy.

3. The following is added to the OTHERINSURANCE Common Policy Condition:

C. CONTRACT OF SALE For Covered Property that is the subject of acontract of sale, the word "you" includes theLoss Payee.

1. The Loss Payee shown in the Declarations is aperson or organization you have entered acontract with for the sale of Covered Property.

2. For Covered Property in which both you and theLoss Payee have an insurable interest, we will:

a. Adjust losses with you; and

Page 2 of 2 Form SS 12 12 03 92 Printed in U.S.A. (NS)


Form IH 99 40 04 09 Page 1 of 1

U.S. DEPARTMENT OF THE TREASURY, OFFICE OF FOREIGN ASSETSCONTROL ("OFAC") ADVISORY NOTICE TO POLICYHOLDERS

No coverage is provided by this Policyholder Notice nor can it be construed to replace any provisions of yourpolicy. You should read your policy and review your Declarations page for complete information on thecoverages you are provided.

This Notice provides information concerning possible impact on your insurance coverage due to directivesissued by the United States. Please read this Notice carefully.

The Office of Foreign Assets Control ("OFAC") of the U.S. Department of the Treasury administers andenforces economic and trade sanctions based on U.S. foreign policy and national security goals againsttargeted foreign countries and regimes, terrorists, international narcotics traffickers, those engaged in activitiesrelated to the proliferation of weapons of mass destruction, and other threats to the national security, foreignpolicy or economy of the United States. OFAC acts under Presidential national emergency powers, as well asauthority granted by specific legislation, to impose controls on transactions and freeze assets under U.S.jurisdiction. OFAC publishes a list of individuals and companies owned or controlled by, or acting for or onbehalf of, targeted countries. It also lists individuals, groups, and entities, such as terrorists and narcoticstraffickers designated under programs that are not country-specific. Collectively, such individuals andcompanies are called "Specially Designated Nationals and Blocked Persons" or "SDNs". Their assets areblocked and U.S. persons are generally prohibited from dealing with them. This list can be located on OFAC’sweb site at – http//www.treas.gov/ofac.

In accordance with OFAC regulations, if it is determined that you or any other insured, or any person or entityclaiming the benefits of this insurance has violated U.S. sanctions law or is an SDN, as identified by OFAC, thepolicy is a blocked contract and all dealings with it must involve OFAC. When an insurance policy isconsidered to be such a blocked or frozen contract, no payments nor premium refunds may be made withoutauthorization from OFAC.

MOSTRE EXHIBITS LLC

72 SBA AP9428

06/25/19 06/25/20

SENTINEL INSURANCE COMPANY, LIMITED

Form IH 99 41 04 09 Page 1 of 1

Named Insured:

Policy Number:

Effective Date: Expiration Date:

Company Name:


TRADE OR ECONOMIC SANCTIONS ENDORSEMENT

This insurance does not apply to the extent that trade or economic sanctions or other laws or regulationsprohibit us from providing insurance, including, but not limited to, the payment of claims.

All other terms and conditions remain unchanged.

EXHIBIT C

208174095_1 LAW

March 16, 2020

William Bates Mostre Exhibits LLC 416 Mary Lindsay Polk Dr, STE 508 Franklin, TN 37067

Re: Insured: Mostre Exhibits LLC Claim Number : CP0018660166 Policy Number: 72 SBA AP9428 Reported Date of Loss: 02/22/2020

Dear William Bates:

This letter responds to Mostre Exhibits LLC’s (“you” or “your”) claim for loss of business income due to the ongoing Coronavirus outbreak. For the reasons discussed below, based on the facts of your loss as we understand them, there is no coverage for this loss under the above policy.

As we understand the facts, you have suffered a loss of business income as a result of trade shows being cancelled and in turn the customers you build exhibits for have cancelled their orders. The tradeshows were cancelled due to concerns over the spread of coronavirus. No direct physical loss or damage has occurred to property at the scheduled premises listed in your policy or at any location that would qualify as a dependent property. Additionally, no business personal property owned by you suffered any direct physical loss or damage from this event.

Please refer to the Declarations page of your policy, which lists the following locations as “scheduled premises”:

416 Mary Lindsay Polk Dr, STE 508 Franklin, TN 37067 965 Park Center Dr, Vista, CA 92081

We have carefully reviewed your policy and, unfortunately, there is no coverage available for this loss. We are basing this determination on the following policy language found within Form SS 00 07 07 05 in the Spectrum policy, which states, in part, as follows:

A. COVERAGE

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We will pay for direct physical loss of or physical damage to Covered Property at the premises described in the Declarations (also called "scheduled premises" in this policy) caused by or resulting from a Covered Cause of Loss.

3. Covered Causes of Loss

RISKS OF DIRECT PHYSICAL LOSS unless the loss is:

a. Excluded in Section B., EXCLUSIONS; or

b. Limited in Paragraph A.4. Limitations; that follow.

This property policy protects your business personal property against risks of direct physical loss or damage at your Scheduled Premises. You have not identified any physical loss to any building or personal property at a scheduled premises.

The policy also provides certain coverages for loss of business income, described below:

5. Additional Coverages o. Business Income

(1) We will pay for the actual loss of Business Income you sustain due to the necessary suspension of your "operations" during the "period of restoration". The suspension must be caused by direct physical loss of or physical damage to property at the "scheduled premises", including personal property in the open (or in a vehicle) within 1,000 feet of the “scheduled premises”, caused by or resulting from a Covered Cause of Loss.

(2) With respect to the requirements set forth in the preceding paragraph, if you occupy only part of the site at which the “scheduled premises” are located, your “scheduled premises” also means:

(a) The portion of the building which you rent, lease or occupy; and

(b) Any area within the building or on the site at which the “scheduled premises” are located, but only if that area services, or is used to gain access to, the “scheduled premises”.

(3) We will only pay for loss of Business Income that occurs within 12 consecutive months after the date of direct physical loss or physical damage.

This Additional Coverage is not subject to the Limits of Insurance.


(a) Net Income (Net Profit or Loss before income taxes) that would have been earned or incurred if no direct physical loss or physical damage had occurred; and

(b) Continuing normal operating expenses incurred, including payroll.

(5) With respect to the coverage provided in this Additional Coverage, suspension means:

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(a) The partial slowdown or complete cessation of your business activities; or

(b) That part or all of the “scheduled premises” is rendered untentantable as a result of a Covered Cause of Loss if coverage for Business Income applies to the policy.

The Business Income coverage does not apply to this loss, at a minimum, because there has been no physical loss or damage to property at a scheduled premises. You also have not shown that any suspension of your business operations has occurred due to a covered cause of loss. Other reasons may apply, including the exclusions discussed below.

The policy also includes coverage for loss caused by property damage at other premises that qualify as a Dependent Property. It provides as follows:

s. Business Income from Dependent Properties (1) We will pay for the actual loss of Business Income you sustain due to direct

physical loss or physical damage at the premises of a dependent property caused by or resulting from a Covered Cause of Loss.

The most we will pay under this Additional Coverage is $5,000 in any one occurrence unless a higher Limit of Insurance is indicated in the Declarations.

(2) We will reduce the amount of your Business Income loss, other than Extra Expense, to the extent you can resume "operations", in whole or in part, by using any other available:

(a) Source of materials; or

(b) Outlet for your products.

(3) If you do not resume "operations", or do not resume "operations" as quickly as possible, we will pay based on the length of time it would have taken to resume "operations" as quickly as possible.

(4) Dependent Property means property owned, leased or operated by others whom you depend on to:

(a) Deliver materials or services to you or to others for your account. But services do not include:

(i) Water, communication, power services or any other utility services; or

(ii) Any type of web site, or Internet service.

(b) Accept your products or services;

(c) Manufacture your products for delivery to your customers under contract for sale; or

(d) Attract customers to your business premises.

The dependent property must be located in the coverage territory of this policy.

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(5) The coverage period for Business Income under this Additional Coverage:

(a) Begins 72 hours after the time of direct physical loss or physical damage caused by or resulting from a Covered Cause of Loss at the premises of the dependent property; and

(b) Ends on the date when the property at the premises of the dependent property should be repaired, rebuilt or replaced with reasonable speed and similar quality.

(6) The Business Income coverage period, as stated in Paragraph (5), does not include any increased period required due to the enforcement of any ordinance or law that:

(a) Regulates the construction, use or repair, or requires the tearing down of any property; or (b) Requires any insured or others to test for, monitor, clean up, remove,

contain, treat, detoxify, or neutralize, or in any way respond to, or assess the effects "pollutants."

(7) The definition of Business Income contained in the Business Income Additional Coverage also applies to this Business Income From Dependent Properties Additional Coverage.

The loss did not occur at your “scheduled premises” listed on your policy as referenced above. In addition, no loss occurred as a result of direct physical damage from a covered cause of loss at any location that would qualify as a dependent property as outlined above. Accordingly, the business income from dependent property coverage does not apply.

We also bring the following potentially applicable exclusions to your attention. Even if you suffer a loss that is otherwise covered by one or more of the above coverages, these exclusions may bar coverage for the loss.

B. EXCLUSIONS

2. We will not pay for physical loss or physical damage caused by or resulting from:

i. Pollution: We will not pay for loss or damage caused by or resulting from the discharge, dispersal, seepage, migration, release or escape of "pollutants and contaminants" unless the discharge, dispersal, seepage, migration, release or escape is itself caused by any of the "specified causes of loss." But if physical loss or physical damage by the "specified causes of loss" results, we will pay for the resulting physical loss or physical damage caused by the "specified cause of loss."

G. PROPERTY DEFINITIONS

15. "Pollutants and Contaminants" means any solid, liquid, gaseous or thermal irritant or contaminant, including smoke, vapors, soot, fumes, acids, alkalis, chemicals and waste, or any other material which causes or threatens to cause physical loss,

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physical damage, impurity to property, unwholesomeness, undesirability, loss of marketability, loss of use of property, or which threatens human health or welfare. Waste includes materials to be recycled, reconditioned or reclaimed.

16. "Scheduled Premises" means any premises listed by location address in the Scheduled Premises section of the Declarations.

19. "Specified Cause 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.

Even if coverage were potentially available for any of the above coverages for loss caused by Coronavirus, the pollution exclusion could also bar coverage. The Coronavirus is understood to be an irritant or contaminant which causes or threatens to cause physical impurity, unwholesomeness and clearly threatens human health or welfare. No Specified Cause of Loss of which we are aware has caused its release or dispersal in such a manner as to impact your claim.

We also direct your attention to another potentially applicable exclusion, as follows:

B. EXCLUSIONS

3. We will not pay for loss or damaged caused by or resulting from any of the following. But if physical loss or physical damage by a Covered Cause of Loss results, we will pay for that resulting physical loss or damage.

b. Acts or Decisions: Acts or decisions, including the failure to act or decide, of any person, group, organization or governmental body.

We are not liable to pay for loss caused by or resulting from the decision of any person, group, organization or, governmental body to cancel or otherwise prevent the usual flow of business, unless damage results from a Covered Cause of Loss.

An additional endorsement on your policy- Form SS 04 28 09 07 “Manufacturers Stretch” provides an increased coverage limit for Business Income From Dependent Properties that is more than the available limit on the base policy. Although this form would potentially provide a higher coverage limit that the amount provided on the base policy, the coverage itself still only applies if the loss is the result of direct physical damage having occurred at a dependent property. Therefore, this coverage does not apply. Please refer to the SS 04 28 09 07 Form which states:

Except as otherwise stated in this endorsement, the terms and conditions of the policy apply to the insurance stated below. C. The following changes apply only if Business Income and Extra Expenses are covered under this policy. These changes apply to the Standard Property Coverage Form, Additional Coverages, A.4., or to the Special Property Coverage Form, Additional Coverages, A.5.:

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3. Business Income from Dependent Properties The following Additional Coverage is added:

We will pay up to $25,000 in any one occurrence as a limit of Insurance to apply to loss of Business Income and Extra Expense due to direct physical damage at property of others you depend on. This Limit of Insurance is in addition to any other Limit shown in the Declarations for specific Dependent Properties.

This additional coverage is subject to the provisions of Business Income from Dependent Properties, Form SS 04 78, with the exception of the Limit of Insurance provision contained in that form. Business Income from Dependent Properties, Form SS 04 78 is made a part of this policy whether or not Business Income from Dependent Properties coverage is indicated in the Declarations.

There is no requirement for Dependent Properties to be scheduled for the coverages provided by this Stretch endorsement to apply.

Lastly, your policy also includes Form SS 40 93 07 05- Limited Fungi, Bacteria or Virus Coverage. We have carefully reviewed this form as well and see no potential for coverage for the loss you incurred since there was no direct physical damage to covered property by a “specified cause of loss. Please refer to the form which states, in part, as follows:

2. The following exclusion is added to Paragraph B.1. Exclusions of the Standard Property Coverage Form and the Special Property Coverage Form; Paragraph F., Additional Exclusions of Computers and Media, form SS 04 41, and to form SS 04 45, Personal Property of Others:

i. "Fungi", Wet Rot, Dry Rot, Bacteria And Virus We will not pay for loss or damage caused directly or indirectly by any of the

following. Such loss or damage is excluded regardless of any other cause or event that contributes concurrently or in any sequence to the loss: (1) Presence, growth, proliferation, spread or any activity of "fungi", wet rot, dry rot, bacteria or virus. (2) But if "fungi", wet rot, dry rot, bacteria or virus results in a "specified cause of loss" to Covered Property, we will pay for the loss or damage caused by that "specified cause of loss". This exclusion does not apply: (1) When "fungi", wet or dry rot, bacteria or virus results from fire or lightning; or (2) To the extent that coverage is provided in the Additional Coverage – Limited Coverage for "Fungi", Wet Rot, Dry Rot, Bacteria and Virus with respect to loss or damage by a cause of loss other than fire or lightning.

This exclusion applies whether or not the loss event results in widespread damage or affects a substantial area.

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The coronavirus itself was not caused or spread by a “Specified Cause of Loss” listed above. As such, the "Fungi", Wet Rot, Dry Rot, Bacteria And Virus Exclusion on Form SS 40 93 07 05 applies.

The policy also provides as follows:

B. The following Additional Coverage is added to Paragraph A.4. of the Standard Property Coverage Form or Paragraph A.5. of the Special Property Coverage Form, and applies to the optional coverage form SS 04 41, Computers and Media and SS 04 45, Personal Property of Others Form:

1. Limited Coverage For "Fungi", Wet Rot, Dry Rot, Bacteria and Virus a. The coverage described in 1.b. below only applies when the "fungi", wet or dry rot, bacteria or virus is the result of one or more of the following causes that occurs during the policy period and only if all reasonable means were used to save and preserve the property from further damage at the time of and after that occurrence. (1) A "specified cause of loss" other than fire or lightning; (2) Equipment Breakdown Accident occurs to Equipment Breakdown Property, if Equipment Breakdown applies to the affected premises. b. We will pay for loss or damage by "fungi", wet rot, dry rot, bacteria and virus. As used in this Limited Coverage, the term loss or damage means: (1) Direct physical loss or direct physical damage to Covered Property caused by "fungi", wet rot, dry rot, bacteria or virus, including the cost of removal of the "fungi", wet rot, dry rot, bacteria or virus; (2) The cost to tear out and replace any part of the building or other property as needed to gain access to the "fungi", wet rot, dry rot, bacteria or virus; and (3) The cost of testing performed after removal, repair, replacement or restoration of the damaged property is completed, provided there is a reason to believe that "fungi", wet rot, dry rot, bacteria or virus are present. c. Unless a higher Limit of Insurance is shown in the Declarations for Limited "Fungi", Bacteria or Virus Coverage, the coverage described under this Limited Coverage is No more than the Limit of Insurance stated in the Declarations for Building and Business Personal Property, but not greater than $50,000.

If form SS 04 41, Computers and Media, and form SS 04 45, Personal Property of Others, are made a part of this policy, then the Limits of Insurance for Computers And Media, and Personal Property of Others is included within this coverage limit. This coverage is made applicable to separate "scheduled premises" as described in the Declarations. Regardless of the number of claims, this limit is the most we will pay per "scheduled premises" for the total of all loss or damage arising out of all (1) occurrences of "specified causes of loss" (other than fire or lightning); and (2) Equipment Breakdown Accident that occurs to Equipment Breakdown Property; which take place in a 12-month period (starting with the beginning of the present annual policy period). With respect to a particular occurrence of loss which results in "fungi", wet or dry rot, bacteria or virus, we will not pay more than the total of $50,000 unless a higher

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Limit of Insurance is shown in the Declarations, even if the "fungi", wet or dry rot, bacteria, or virus continues to be present or active, or recurs, in a later policy period. d. The coverage provided under this Limited Coverage does not increase the applicable Limit of Insurance on any Covered Property. If a particular occurrence results in loss or damage by "fungi", wet rot, dry rot, bacteria or virus, and other loss or damage, we will not pay more, for the total of all loss or damage, than the applicable Limit of Insurance on the affected Covered Property.

If there is covered loss or damage to Covered Property, not caused by "fungi", wet Rot, dry rot, bacteria or virus, loss payment will not be limited by the terms of this Limited Coverage, except to the extent that "fungi", wet or dry rot, bacteria or virus causes an increase in the loss. Any such increase in the loss will be subject to the terms of this Limited Coverage. e. The terms of this Limited Coverage do not increase or reduce the coverage for Water

Damage provided under provision B.1.h., Exclusion – Water Damage of the Standard Property Coverage Form or Additional Coverage provision A.5.n., Water Damage, Other Liquid, Powder or Molten Material Damage of the Special Property Coverage Form. f. The following applies only if a Time Element Coverage applies to the "scheduled premises" and only if the suspension of "operations" satisfies all the terms and conditions of the applicable Time Element Coverage. (1) If the loss which resulted in "fungi", wet or dry rot, bacteria or virus does not in itself necessitate a suspension of "operations", but such suspension is necessary due to loss or damage to property caused by "fungi", wet or dry rot, bacteria or virus, then our payment under the Time Element Coverage is limited to the amount of loss and expense sustained in a period of not more than 30 days unless another number of days is indicated in the Declarations. The days need not be consecutive. If a covered suspension of "operations" was caused by loss or damage other than "fungi", wet or dry rot, bacteria or virus, but remediation of "fungi", wet or dry rot, bacteria or virus prolongs the "period of restoration", we will pay for loss and expense sustained during the delay (regardless of when such a delay occurs during the "period of restoration"), but such coverage is limited to 30 days unless another number of days is indicated in the Declarations. The days need not be consecutive.

The preceding coverage is also contingent on direct physical damage resulting from a specified cause of loss. Again, since the Coronavirus was not caused or spread by a specified cause of loss, this coverage does not apply.

In summary, we sincerely regret that we are unable to provide coverage for your loss for the following reasons, as noted above and in the specific policy language cited:

The virus is not occurring at any scheduled premises and has not damaged any building or business personal property.

There was no direct physical damage to any location that would qualify as a dependent property.

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Your loss has not resulted in the full or partial closure of your business due to direct physical damage by a covered cause of loss to covered property.

Any loss caused by the release, escape, dispersal of a contaminant, defined in your policy as including a contaminant that threatens human health or welfare is specifically excluded.

Any loss caused by or resulting from the decision of any person, group, organization or, governmental body to cancel or otherwise prevent the usual flow of business is also excluded from coverage.

Our coverage decision in this matter is based upon the facts as we currently understand them. If you have any other information that may bear on our coverage review please submit that information to my attention so that we may give it due consideration.

The foregoing should not be construed as a waiver of any of Sentinel Insurance Company Ltd’s rights and defenses under policy number 72 SBA AP 9428, and Sentinel Insurance Company Ltd specifically reserves its right to modify or supplement this review of coverage based upon any additional information which it may obtain and/or any other grounds which may appear.

If you have any questions, or would like to discuss this matter further, please feel free to contact me at 860-716-2115.

Sincerely,

Justin Lorenzo General Adjuster Sentinel Insurance Company Ltd

CC: IOA Insurance Services 4370 La Jolla Village Drive 600 San Diego, CA 92122

EXHIBIT D

RICARDO LARA CALIFORNIA INSURANCE COMMISSIONER

CALIFORNIA DEPARTMENT OF INSURANCE PROTECT • PREVENT • PRESERVE

300 Capitol Mall, 17th Floor Sacramento, California 95814

(916) 492-3500

NOTICE TO: All Admitted and Non-Admitted Insurance Companies, All Licensed

Insurance Adjusters and Producers, and Other Licensees and Interested Parties

FROM: Insurance Commissioner Ricardo Lara DATE: April 14, 2020 RE: Requirement to Accept, Forward, Acknowledge, and Fairly Investigate

All Business Interruption Insurance Claims Caused by the COVID-19 Pandemic

To help combat the spread of the COVID-19 virus, various federal, state, and local government officials have issued emergency public health orders and “shelter-in-place” directives. The COVID-19 pandemic has severely curtailed activities of policyholders in both personal and commercial lines, causing significant and widespread economic loss in California. Business Interruption insurance is an optional coverage that may be purchased as part of a comprehensive multi-peril commercial policy, business owners’ policy, or on a stand-alone basis. Many small and large California businesses purchase Business Interruption insurance to protect against the loss of income and other losses caused by an interruption to the normal operations of the business. The California Department of Insurance (Department) continues to encourage businesses to review their policies, including policy exclusions, coverage limits, and applicable deductibles, and contact their insurance companies to determine what their policies cover as each insurance policy is different and the coverage varies. However, despite the Department’s on-going guidance to businesses statewide during the COVID-19 pandemic, it has received numerous complaints from businesses, public officials, and other stakeholders asserting that certain insurers, agents, brokers, and insurance company representatives are attempting to dissuade policyholders from filing a notice of claim under its Business Interruption insurance coverage, or refusing to open and investigate these claims upon receipt of a notice of claim. Therefore, Insurance Commissioner Ricardo Lara finds it necessary to issue this Notice to ensure that all agents, brokers, insurance companies, and other licensees accept,

Notice on Requirement to Accept, Forward, Acknowledge, and Fairly Investigate All Business Interruption Insurance Claims Caused by the COVID-19 Pandemic Page 2 April 14, 2020 forward, acknowledge, and fairly investigate all business interruption insurance claims submitted by businesses. Commissioner Lara hereby notifies all agents, brokers, insurance companies, and other Department licensees that they are required to comply with their contractual, statutory, regulatory, and other legal obligations, including but not limited to, the obligations set forth in the California Fair Claims Settlement Practices Regulations (Cal. Code Regs. tit. 10; sections 2695.1 et seq.) (the “Regulations”) in connection with all California insurance claims including, but not limited to, Business Interruption insurance claims, event cancellation claims, and other related claims filed by California businesses. The Regulations require, among other things, that all insurers, insurance agents, brokers, insurance company representatives, and other Department licensees accept any communication from the policyholder or its representative indicating that the policyholder desires to make a claim against a policy that reasonably suggests that a response is expected as a notice of claim. (Regulations, section 2695.5(b).) Upon receipt of a notice of claim, every Department licensee is required to transmit such notice of claim to the insurer immediately. (Regulations, section 2695.5(d).) Upon receipt of a notice of claim, subject to certain exceptions, every insurer is required to acknowledge the notice of claim immediately, but in no event more than 15 calendar days after receipt of the notice of claim. (Regulations, section 2695.5(e).) If the acknowledgment of a claim is not in writing, a written acknowledgment of the receipt and date of the notice of claim must be made in the claim file of the insurer. (Regulations, section 2695.5(e)(1).) Failure of an insurance agent or claims agent to transmit a notice of claim to the insurer promptly will be imputed to the insurer, except where the subject policy was issued pursuant to the California Automobile Assigned Risk Program. (Regulations, section 2695.5(e)(1).) Upon receipt of a notice of claim, the insurer is required to provide the policyholder with the necessary forms, instructions, and reasonable assistance, including but not limited to, specifying the information the policyholder must provide in connection with the proof of claim and begin any necessary investigation of the claim. (Regulations, section 2695.5(e)(2).) Thereafter, every insurer is required to conduct and diligently pursue a thorough, fair, and objective investigation of the reported claim, and is prohibited from seeking information not reasonably required for or material to the resolution of a claim dispute before determining whether the claim will be accepted or denied, in whole or in part. (Regulations, section 2695.7(d).) After conducting a thorough, fair, and objective investigation of the claim, the insurer must accept or deny the claim, in whole or in part, immediately, but in no event more than 40 days after receipt of the proof of claim. The amount of the claim accepted or denied by the insurer must be clearly documented in the claim file unless the claim has been denied in its entirety. (Regulations, section 2695.7(b).)

Notice on Requirement to Accept, Forward, Acknowledge, and Fairly Investigate All Business Interruption Insurance Claims Caused by the COVID-19 Pandemic Page 3 April 14, 2020 If the claim is denied in whole or in part, the insurer is required to communicate the denial in writing to the policyholder listing all the legal and factual bases for such denial. (Regulations, section 2695.7(b)(1).) Where the denial of a first party claim is based on a specific statute, applicable law or policy provision, condition, or exclusion, the written denial must include reference to and provide an explanation of the application of the statute, applicable law, or policy provision, condition, or exclusion to the claim. Lastly, every insurer that denies or rejects a third party claim, in whole or in part, or disputes liability or damages must do so in writing. (Regulations, section 2695.7(b)(1).) Based on the foregoing, every insurer, insurance agent, broker, insurance company representative, and other Department licensees is required to comply with their contractual, statutory, regulatory, and other legal obligations in connection with all California insurance claims, including but not limited to, Business Interruption insurance claims, event cancellation claims, and other related claims filed by California businesses. Additionally, no insurer, insurance agent, broker, insurance company representative, or other Department licensee shall dissuade policyholders from filing a notice of claim under its Business Interruption insurance coverage, or refuse to open and investigate such claims upon receipt of a notice of claim.

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