1004516 2000 143551 200 03-21-2012

Certified Policy Record

I, the undersigned, do hereby confirm that I am custodian of the records pertaining to the issuance of 

policies by State Farm Florida Insurance Company. 

I certify that the attached documents represent a true and accurate record of the terms and conditions 

of Policy Number 98-QC-5216-7 including any endorsements, if applicable, for the policy term(s) 

03/10/2020 - 03/10/2021 and insuring ROYAL PALM OPTICAL INC based on available records. 

The policy was in effect on the loss date of 03/16/2020.

_________________________________ 

CHRIS WILLIAMS 

Underwriter 

Date:___________________ 5/14/2020

ROYAL PALM 000001 EXHIBIT A

Case 9:20-cv-80749-RS Document 12-2 Entered on FLSD Docket 06/11/2020 Page 1 of 107
STATE FARM FLORIDA INSURANCE COMPANY

A STOCK COMPANY WITH HOME OFFICES IN WINTER HAVEN, FLORIDA

3 Ravinia Drive Atlanta GA 30346-2117 POLICY NUMBER 98-QC-5216-7

 

M-19-2436-FB1B F Z

K2,U4,L9

AT2

____

____

____

____

____

____

____

I 94 003816 Z 3125 19

ROYAL PALM OPTICAL INC

17940 MILITARY TRL STE 400

BOCA RATON FL 33496-2411

Prepad

JAN 13 2020

N

024829 294

 

JAN 13 2020

003819 3125

0109-ST--0001

ROYAL PALM 000002

Case 9:20-cv-80749-RS Document 12-2 Entered on FLSD Docket 06/11/2020 Page 2 of 107
98-QC-5216-7

024829

M 24829

FLORIDA ASSESSMENT PAGE

FULL ENTITY NAME AMOUNT

Florida Trust Fund Assessment $3.04

Florida Emergency Management Preparedness, and Assistance Trust Fund Assessment $4.00

Total Florida Assessments $ 7.04

ROYAL PALM 000003

Case 9:20-cv-80749-RS Document 12-2 Entered on FLSD Docket 06/11/2020 Page 3 of 107
Policy Number

Policy Period Efectiv Date Expiraton Date

Automaic Renwal policy period 12 months - Ifthe is hown as , thispolicy wlbe rnwed automaicly subject ohe prmius, rules and

forms inefct oreach suceding policy period. Ifthis policy sterminated, weil gveyou andthe Mortgae/Linholder witen otice n

compliance withe policy provisn oras equird bylaw.

530-68 a.205-31 (o1f32c)

STATE FARM FLORIDA INSURANCE COMPANY

A STOCK COMPANY WITH HOME OFFICES IN WINTER HAVEN, FLORIDA

3 Ravinia Drive Atlanta GA 30346-2117

RENEWAL DECLARATIONS

98-QC-5216-7

 

M-19-2436-FB1B F Z

K2,U4,L9

____

____

____

____

____

____

____

I 94 003816 Z 3125 19

Named Insured

ROYAL PALM OPTICAL INC

17940 MILITARY TRL STE 400

BOCA RATON FL 33496-2411 Agent and Mailing Address

ROD MABE INSURANCE AGENCY INC

5493 WILES RD STE 102

COCONUT CREEK FL 33073-4219

PHONE: (954) 975-6774

(800) 749-6775

12 Months MAR 10 2020 MAR 10 2021

The policy period begins adens at12:0 amstandr time athe prmise locatin. 

 

Retail Sales Policy

Entity: Corporation

NOTICE: Information concerning changes in your policy language is included. Please call your agent

if you have any questions.

POLICY PREMIUM $ 3,027.00

FL TRUST FUND $ 3.04

FL EMPA ASSESSMENT $ 4.00

Total Amount $ 3,034.04

Discounts Applied:

Renewal Year

Years in Business

Protective Devices

Sprinkler

Claim Record

JAN 13 2020

CMP-4000

Continued on Reverse Side of Page Page 1 of 8

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024830 294

Prepad

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Includes copyrighted materil ofInsurace Srvices Ofice, In.with spermison.

JAN 13 2020

0209-ST--0001

ROYAL PALM 000004

Case 9:20-cv-80749-RS Document 12-2 Entered on FLSD Docket 06/11/2020 Page 4 of 107
M 24829

RENEWAL DECLARATIONS (CONTINUED)

Policy Number 98-QC-5216-7 Retail Sales Policy for ROYAL PALM OPTICAL INC

SECTION I - PROPERTY SCHEDULE

Location

Number

Location of

Described

Premises

Limit of Insurance*

Coverage A - Buildings

Limit of Insurance*

Coverage B - Business Personal

Property

Seasonal

IncreaseBusiness

Personal

Property

001 17940 N MILITARY TRL STE 400 egarvoC N0,831 $%04 

BOCA RATON FL 33496-2411

* As of the effective date of this policy, the Limit of Insurance as shown includes any increase in the limit due to Inflation Coverage.

SECTION I - INFLATION COVERAGE INDEX(ES)

Cov A - Inflation Coverage Index: N/A

Cov B - Consumer Price Index: 257.3

SECTION I - DEDUCTIBLES

Basic Deductible 0,1$ 

 Special Deductibles: 

Money and Securities 052$ Employee Dishonesty 052$ 

Equipment Breakdown 0,1$ 

 

Other deductibles may apply - refer to policy.

JAN 13 2020

CMP-4000

024830 Continued on Next Page Page 2 of 8

Prepad

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Includes copyrighted materil ofInsurace Srvices Ofice, In.with spermison.

JAN 13 2020

ROYAL PALM 000005

Case 9:20-cv-80749-RS Document 12-2 Entered on FLSD Docket 06/11/2020 Page 5 of 107
M 24829

RENEWAL DECLARATIONS (CONTINUED)

Policy Number 98-QC-5216-7 Retail Sales Policy for ROYAL PALM OPTICAL INC

____

____ ____

SECTION I - EXTENSIONS OF COVERAGE - LIMIT OF INSURANCE - EACH DESCRIBED PREMISES

The coverages and corresponding limits shown below apply separately to each described premises shown in these

Declarations, unless indicated by "See Schedule." If a coverage does not have a corresponding limit shown below,

but has "Included" indicated, please refer to that po licy provision for an explanation of that coverage.

LIMIT OF

COVERAGE INSURANCE

Accounts Receivable On Premises 0,1$ 

Off Premises 0,5$ 

 Arson Reward 0,5$ 

Back-Up Of Sewer Or Drain 0,51$ 

Brands And Labels 0,52$ 

Collapse deulcnI 

Damage To Non-Owned Buildings From Theft, Burglary Or Robbery timL BegarvoC 

Debris Removal sol dervoc f%52 

Equipment Breakdown deulcnI 

Fire Department Service Charge 0,5$ 

Fire Extinguisher Systems Recharge Expense 0,5$ 

Forgery Or Alteration 0,1$ 

Glass Expenses deulcnI 

Increased Cost Of Construction And Demolition Costs (applies only when buildings are %01 

insured on a replacement cost basis)

Money And Securities (Off Premises) 0,5$ 

Money And Securities (On Premises) 0,1$ 

Money Orders And Counterfeit Money 0,1$ 

Newly Acquired Business Personal Property (applies only if this policy provides 0,01$ 

Coverage B - Business Personal Property)

JAN 13 2020

CMP-4000

Continued on Reverse Side of Page Page 3 of 8

N

024831 294

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JAN 13 2020

0309-ST--0001

ROYAL PALM 000006

Case 9:20-cv-80749-RS Document 12-2 Entered on FLSD Docket 06/11/2020 Page 6 of 107
M 24829

RENEWAL DECLARATIONS (CONTINUED)

Policy Number 98-QC-5216-7 Retail Sales Policy for ROYAL PALM OPTICAL INC

Newly Acquired Or Constructed Buildings (applies only if this policy provides 0,52$ 

Coverage A - Buildings) 

Ordinance Or Law - Equipment Coverage deulcnI 

Outdoor Property 0,5$ 

Personal Effects (applies only to those premises provided Coverage B - Business 05,2$ 

Personal Property)

Personal Property Off Premises 0,51$ 

Pollutant Clean Up And Removal 0,1$ 

Preservation Of Property syaD 03 

Property Of Others (applies only to those premises provided Coverage B - Business 05,2$ 

Personal Property)

Signs 0,1$ 

Valuable Papers And Records

On Premises 0,1$ 

Off Premises 0,5$ 

 Water Damage, Other Liquids, Powder Or Molten Material Damage deulcnI 

SECTION I - EXTENSIONS OF COVERAGE - LIMIT OF INSURANCE - PER POLICY

The coverages and corresponding limits shown below are the most we will pay regardless of the number of

described premises shown in these Declarations.

LIMIT OF

COVERAGE INSURANCE

Dependent Property - Loss Of Income 0,1$ 

 Employee Dishonesty 0,1$ 

Utility Interruption - Loss Of Income 0,01$ 

Loss Of Income And Extra Expense Actual Loss Sustained - 12 Months

JAN 13 2020

CMP-4000

024831 Continued on Next Page Page 4 of 8

Prepad

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Includes copyrighted materil ofInsurace Srvices Ofice, In.with spermison.

JAN 13 2020

ROYAL PALM 000007

Case 9:20-cv-80749-RS Document 12-2 Entered on FLSD Docket 06/11/2020 Page 7 of 107
M 24829

RENEWAL DECLARATIONS (CONTINUED)

Policy Number 98-QC-5216-7 Retail Sales Policy for ROYAL PALM OPTICAL INC

____

____ ____

SECTION II - LIABILITY

LIMIT OF

COVERAGE INSURANCE

Coverage L - Business Liability 0,01$ 

 Coverage M - Medical Expenses (Any One Person) 0,5$ 

Damage To Premises Rented To You 0,03$ 

Opticians Professional Liability 0,01$ 

LIMIT OF

AGGREGATE LIMITS INSURANCE

Products/Completed Operations Aggregate 0,02$ 

 General Aggregate 0,02$ 

Professional Aggregate 0,01$ 

Each paid claim for Liability Coverage reduces the amount of insurance we provide during the applicable

annual period. Please refer to Section II - Liability in the Coverage Form and any attached endorsements.

Your policy consists of these Declarations, the BUSINESSOWNERS COVERAGE FORM shown below, and any other

forms and endorsements that apply, including those shown below as well as those issued subsequent to the

issuance of this policy.

FORMS AND ENDORSEMENTS

CMP-4100 Businessowners Coverage Form

FE-6999.2 *Terrorism Insurance Cov Notice

CMP-4259.1 Amendatory Endorsement

CMP-4746.1 Hired Auto Liability

CMP-4428 Opticians Prof Liab

CMP-4750 Exclus-Windstorm or Hail (Fl)

CMP-4703.1 Utility Interruption Loss Incm

CMP-4788 Addl Insd Mgrs Lessor of Prem

CMP-4839 Loss Payable

JAN 13 2020

CMP-4000

Continued on Reverse Side of Page Page 5 of 8

N

024832 294

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Includes copyrighted materil ofInsurace Srvices Ofice, In.with spermison.

JAN 13 2020

0409-ST--0001

ROYAL PALM 000008

Case 9:20-cv-80749-RS Document 12-2 Entered on FLSD Docket 06/11/2020 Page 8 of 107
M 24829

RENEWAL DECLARATIONS (CONTINUED)

Policy Number 98-QC-5216-7 Retail Sales Policy for ROYAL PALM OPTICAL INC

CMP-4874 FL Cat Ground Cover Collapse

CMP-4825 Brands and Labels

CMP-4561.1 Policy Endorsement

CMP-4706 Back-Up of Sewer or Drain

CMP-4704.1 Dependent Prop Loss of Income

CMP-4710 Employee Dishonesty

CMP-4709 Money and Securities

CMP-4522.1 Loss of Income & Extra Expense

FE-3650 Actual Cash Value Endorsement

FD-6007 Inland Marine Attach Dec

* New Form Attached

SCHEDULE OF ADDITIONAL INTERESTS

Interest Type: Loss Payee

Endorsement #: CMP4839

Loan Number: N/A

NATIONAL SUPPLIER

CLEARINGHOUSE PALMETTO

GBA * AG-495

2300 SPRINGDALE DR BLDG 1

CAMDEN SC 290201728

Interest Type: Addl Insured-Section II

Endorsement #: CMP4788

Loan Number: N/A

LJB2, LLC

C/O MINK & MINK INC

3081 E COMMERCIAL BLVD STE 105

FT LAUDERDALE FL 333084329

Interest Type: Addl Insured-Section II

Endorsement #: CMP4788

Loan Number: N/A

LJBOF DELAWARE LLC

MINK AND MINK INC LLC

3081 E COMMERCIAL BLVD

FOR 33308

JAN 13 2020

CMP-4000

024832 Continued on Next Page Page 6 of 8

Prepad

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Includes copyrighted materil ofInsurace Srvices Ofice, In.with spermison.

JAN 13 2020

ROYAL PALM 000009

Case 9:20-cv-80749-RS Document 12-2 Entered on FLSD Docket 06/11/2020 Page 9 of 107
M 24829

RENEWAL DECLARATIONS (CONTINUED)

Policy Number 98-QC-5216-7 Retail Sales Policy for ROYAL PALM OPTICAL INC

____

____ ____

JAN 13 2020

CMP-4000

Continued on Reverse Side of Page Page 7 of 8

N

024833 294

Prepad

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Includes copyrighted materil ofInsurace Srvices Ofice, In.with spermison.

JAN 13 2020

0509-ST--0001

ROYAL PALM 000010

Case 9:20-cv-80749-RS Document 12-2 Entered on FLSD Docket 06/11/2020 Page 10 of 107
M 24829

RENEWAL DECLARATIONS (CONTINUED)

Policy Number 98-QC-5216-7 Retail Sales Policy for ROYAL PALM OPTICAL INC

JAN 13 2020

CMP-4000

Page 8 of 8

N

024833 294

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JAN 13 2020

ROYAL PALM 000011

Case 9:20-cv-80749-RS Document 12-2 Entered on FLSD Docket 06/11/2020 Page 11 of 107
Policy Number

Policy Period Efectiv Date Expiraton Date

Automaic Renwal policy period 12 months - Ifthe is hown as , thispolicy wlbe rnwed automaicly subject ohe prmius, rules and

forms inefct oreach suceding policy period. Ifthis polcy isterminated, weil gveyou andthe Mortgae/Linholder witen otice n

compliance withe policy provisn oras equird bylaw.

Se Rvers forSchedul Page withLmits

The above Prmiu Amount isclude inthe Policy Premiu shown the Dclartions.

Your plicy onsit ofhes Declartions, theINLAD MARINE CONDITONS shown below, andy other foms andeorsemnts hat

aply, including those hown below asel asthoe isued subequnt ohe isuance ofthis polcy.

530-68 a.205-31 (o1f32c)

Forms, Options, adEnorsemnts

Anual Poicy Premiu

STATE FARM FLORIDA INSURANCE COMPANY

A STOCK COMPANY WITH HOME OFFICES IN WINTER HAVEN, FLORIDA

3 Ravinia Drive Atlanta GA 30346-2117

INLAND MARINE ATTACHING DECLARATIONS

98-QC-5216-7

 

M-19-2436-FB1B F Z

____

____ ____

Named Insured

ROYAL PALM OPTICAL INC

17940 MILITARY TRL STE 400

BOCA RATON FL 33496-2411

12 Months MAR 10 2020 MAR 10 2021

The policy period begins adens at12:0 amstandr time athe prmise locatin. 

 

ATTACHING INLAND MARINE

Included

FE-8739 Inland Marine Conditions

FE-8791 Amendment of Conditions

FE-8743.1 Inland Marine Computer Prop

JAN 13 2020

FD-6007

024834

Prepad

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Includes copyrighted materil ofInsurace Srvices Ofice, In.with spermison.

JAN 13 2020

0609-ST--0001

ROYAL PALM 000012

Case 9:20-cv-80749-RS Document 12-2 Entered on FLSD Docket 06/11/2020 Page 12 of 107
530-68 a.205-31 (o1f32c)

OTHER LIMTS ANDEXCLUSION MAY PLY -REF TOYUR POLICY

ENDORSEMNT

NUMBER COVERAGE

LIMT OF

INSURANCE

DEUCTIBLE 

AMOUNT

ANUAL

PREMIU

ATCHING INLAD MARINE SCHEDULE PAGE

ATCHING LAND MARINE

98-QC-5216-7 M 24829

FE-8743.1 Inland Marine Computer Prop $ 25,000 $ 500 Included

Loss of Income and Extra Expense $ 25,000 Included

JAN 13 2020

FD-6007

024834

Prepad

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Includes copyrighted materil ofInsurace Srvices Ofice, In.with spermison.

JAN 13 2020

ROYAL PALM 000013

Case 9:20-cv-80749-RS Document 12-2 Entered on FLSD Docket 06/11/2020 Page 13 of 107
98-QC-5216-7 024835

____

____ ____ 0709-ST--0001

ROYAL PALM 000014

Case 9:20-cv-80749-RS Document 12-2 Entered on FLSD Docket 06/11/2020 Page 14 of 107
98-QC-5216-7 024835 M 24829

ROYAL PALM 000015

Case 9:20-cv-80749-RS Document 12-2 Entered on FLSD Docket 06/11/2020 Page 15 of 107
98-QC-5216-7 024836

____

____ ____ 0809-ST--0001

ROYAL PALM 000016

Case 9:20-cv-80749-RS Document 12-2 Entered on FLSD Docket 06/11/2020 Page 16 of 107
98-QC-5216-7 024836 M 24829

(CONTINUED)

ROYAL PALM 000017

Case 9:20-cv-80749-RS Document 12-2 Entered on FLSD Docket 06/11/2020 Page 17 of 107
98-QC-5216-7 024837

____ ____

(CONTINUED)

0909-ST--0001

ROYAL PALM 000018

Case 9:20-cv-80749-RS Document 12-2 Entered on FLSD Docket 06/11/2020 Page 18 of 107
98-QC-5216-7 024837 M 24829

ROYAL PALM 000019

Case 9:20-cv-80749-RS Document 12-2 Entered on FLSD Docket 06/11/2020 Page 19 of 107
98-QC-5216-7 010712

____

____ ____

98-QC-5216-7

ROYAL PALM OPTICAL INC

17940 MILITARY TRL STE 400

BOCA RATON FL 33496-2411

NATIONAL SUPPLIER

CLEARINGHOUSE PALMETTO

GBA * AG-495

2300 SPRINGDALE DR BLDG 1

CAMDEN SC 29020-1728

LESSOR PERSONAL PROPERTY OR LIENHOLDER/SEE DEC PAGE

ST-22833-2000

ROYAL PALM 000020

Case 9:20-cv-80749-RS Document 12-2 Entered on FLSD Docket 06/11/2020 Page 20 of 107
98-QC-5216-7 010712

ROYAL PALM 000021

Case 9:20-cv-80749-RS Document 12-2 Entered on FLSD Docket 06/11/2020 Page 21 of 107
98-QC-5216-7 010714

____

____ ____

98-QC-5216-7

ROYAL PALM OPTICAL INC

17940 MILITARY TRL STE 400

BOCA RATON FL 33496-2411

LJB2, LLC

C/O MINK & MINK INC

3081 E COMMERCIAL BLVD STE 105

FT LAUDERDALE FL 33308-4329

SEE DECLARATIONS PAGE

ST-23033-2000

ROYAL PALM 000022

Case 9:20-cv-80749-RS Document 12-2 Entered on FLSD Docket 06/11/2020 Page 22 of 107
98-QC-5216-7 010716

____

____ ____

98-QC-5216-7

ROYAL PALM OPTICAL INC

17940 MILITARY TRL STE 400

BOCA RATON FL 33496-2411

LJBOF DELAWARE LLC

MINK AND MINK INC LLC

3081 E COMMERCIAL BLVD

FOR 33308

17940 N MILITARY TRL STE 400 BOCA RATON FL

ST-23233-2000

ROYAL PALM 000023

Case 9:20-cv-80749-RS Document 12-2 Entered on FLSD Docket 06/11/2020 Page 23 of 107
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ROYAL PALM 000024

Case 9:20-cv-80749-RS Document 12-2 Entered on FLSD Docket 06/11/2020 Page 24 of 107
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ROYAL PALM 000029

Case 9:20-cv-80749-RS Document 12-2 Entered on FLSD Docket 06/11/2020 Page 29 of 107
CMP-4746.1 

Page 1 of 2 

©, Copyright, State Farm Mutual Automobile Insurance Company, 2013 

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

CONTINUED 

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. 

CMP-4746.1 HIRED AUTO LIABILITY 

This endorsement modifies insurance provided under the following: 

BUSINESSOWNERS COVERAGE FORM 

1. The insurance provided under Coverage L – 

Business Liability in SECTION II – LIABILITY, applies to “bodily injury” or “property 

damage” arising out of the maintenance or 

use of a “hired auto” by you or your “employees” in the course of your business. 

2. For insurance provided by this endorsement 

only: 

a. The exclusions under Section II – Exclusions, other than exclusions 1., 2., 4., 7., 

and 10., and the SECTION II – NUCLEAR 

ENERGY LIABILITY EXCLUSION, are deleted and replaced by the following: 

(1) “Bodily injury” to: 

(a) An “employee” of the insured arising out of and in the course of: 

i. Employment by the insured; or 

ii. Performing duties related to the 

conduct of the insured's business; or 

(b) The spouse, child, parent, brother or 

sister of that “employee” as a consequence of Paragraph (a) above. 

This exclusion applies: 

(a) Whether the insured may be liable 

as an employer or in any other capacity; and 

(b) To any obligation to share damages with or repay someone else 

who must pay damages because 

of injury. 

This exclusion does not apply to: 

(a) Liability assumed by the insured 

under an “insured contract”; or 

(b) “Bodily injury” arising out of and in 

the course of domestic employment by the insured unless benefits for such injury are in whole or 

in part either payable or required to 

be provided under any workers 

compensation law. 

(2) “Property damage” to: 

(a) Property owned or being transported by, or rented or loaned to 

the insured; or 

(b) Property in the care, custody or 

control of the insured. 

b. We will not pay under Coverage M – 

Medical Expenses for “bodily injury” arising out of the use of any “hired auto”. 

c. SECTION II – WHO IS AN INSURED, is 

replaced by the following: 

1. Each of the following is an insured under this endorsement to the extent set 

forth below: 

a. You; 

b. Any other person using a “hired 

auto” with your permission; and 

c. Any other person or organization, 

but only for their liability because 

of acts or omissions of an insured 

under a. or b. above. 

2. None of the following is an insured: 

a. Any person engaged in the business 

of his or her employer for “bodily injury” to any co-“employee” of such 

person injured in the course of 

employment, or to the spouse, 

child, parent, brother or sister of 

that co-“employee” as a consequence of such “bodily injury”, or 

for any obligation to share damages with or repay someone else 

who must pay damages because 

of the injury; 

b. Any: 

(1) Partner or “executive officer” 

for any “auto” owned by or registered to such partner or officer or a member of his or her 

household; or 

ROYAL PALM 000030

Case 9:20-cv-80749-RS Document 12-2 Entered on FLSD Docket 06/11/2020 Page 30 of 107
CMP-4746.1 

Page 2 of 2 

(2) “Employee” for any “auto” 

owned by or registered to such 

“employee” or a member of his 

or her household;

c. Any person while employed in or 

otherwise engaged in duties in 

connection with an “auto business”, other than an “auto business” you operate;

d. The owner or lessee (of whom you 

are a sublessee) of a “hired auto” 

or any agent of or any person or 

entity employed by such owner or 

lessee; or 

e. Any person or organization for the 

conduct of any current or past 

partnership or joint venture that is 

not shown as a Named Insured in 

the Declarations. 

3. With respect to this endorsement the following 

additional definitions apply: 

a. “Auto business” means the business or 

occupation of selling, repairing, servicing, 

storing or parking “autos”. 

b. “Hired auto” means any “auto” you 

lease, hire, rent or borrow. This does not 

include any “auto” you lease, hire, rent 

or borrow from any of your “employees”, 

your partners or members (if you are a 

partnership or joint venture), “members” 

or “managers” (if you are a limited liability company), your “executive officers” (if 

you are an organization other than a 

partnership, joint venture or limited liability company) or members of their 

households. 

All other policy provisions apply. 

CMP-4746.1 

©, Copyright, State Farm Mutual Automobile Insurance Company, 2013 

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

ROYAL PALM 000031

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CMP-4428 

Page 1 of 4 

©, Copyright, State Farm Mutual Automobile Insurance Company, 2008 

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

CONTINUED 

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. 

CMP-4428 OPTICIANS PROFESSIONAL LIABILITY 

This endorsement modifies insurance provided under the following: 

BUSINESSOWNERS COVERAGE FORM 

1. The following coverage is added to SECTION 

II — LIABILITY: 

OPTICIANS PROFESSIONAL LIABILITY 

1. When a Limit Of Insurance is shown in the 

Declarations for Opticians Professional Liability, we will pay those sums that the insured becomes legally obligated to pay as 

damages because of “bodily injury”, 

“property damage” or “personal and advertising injury” caused by: 

a. “Wrongful acts”, but only in connection 

with the optical services of your business, including the preparation, fitting, 

demonstration or distribution of ophthalmic lenses and similar products; 

and 

b. Goods or products (including optical 

products) or containers which are prepared, sold, handled or distributed by 

the insured at or from premises you 

own or rent (including any optical establishment which you have discontinued using), if the “bodily injury”, 

“property damage”, or “personal and 

advertising injury” occurs after possession of the goods or products have 

been relinquished to others. 

We will have the right and duty to defend 

the insured by counsel of our choice 

against any “suit” seeking those damages. 

However, we will have no duty to defend 

the insured against any “suit” seeking 

damages for “bodily injury”, “property 

damage” or “personal and advertising injury”, to which this insurance does not apply. 

We may at our discretion, investigate any 

“occurrence” or offense and settle any 

claim or “suit” with or without the insured’s 

consent, for any reason and at any time. 

But: 

a. The amount we will pay for damages 

is limited as described in SECTION II 

— OPTICIANS PROFESSIONAL LIMITS OF INSURANCE; and 

b. Our right and duty to defend end when 

we have used up the applicable Limit 

Of Insurance in the payment of judgments or settlements. 

No other obligation or liability to pay sums 

or perform acts or services is covered unless explicitly provided for under Section 

II – Supplementary Payments. 

2. This insurance applies: 

a. To “bodily injury” and “property damage” only if: 

(1) The “bodily injury” or “property 

damage” is caused by an “occurrence” that takes place in the “coverage territory”; 

(2) The “bodily injury” or “property 

damage” occurs during the policy 

period; and 

(3) Prior to the policy period, no insured listed under Paragraph 1.a.

of SECTION II — WHO IS AN INSURED and no “employee” authorized by you to give or 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 listed 

insured or authorized “employee” 

knew, prior to the policy period, 

that the “bodily injury” or “property 

damage” occurred, then any continuation, change or resumption of 

such “bodily injury” or “property 

damage” during or after the policy 

period will be deemed to have 

been known before the policy period. 

b. To “personal and advertising injury” 

caused by an offense, but only if the 

offense was committed in the “coverage territory” during the policy period. 

3. “Bodily injury” or “property damage” which 

occurs during the policy period and was 

not, prior to the policy period, known to 

ROYAL PALM 000032

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CMP-4428 

Page 2 of 4 

©, Copyright, State Farm Mutual Automobile Insurance Company, 2008 

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

CONTINUED 

have occurred by any insured listed under 

Paragraph 1.a. of SECTION II — WHO IS 

AN INSURED or any “employee” authorized by you to give or receive notice of an 

“occurrence” or claim, includes any continuation, change or resumption of “bodily 

injury” or “property damage” after the end 

of the policy period. 

4. “Bodily injury” or “property damage” will be 

deemed to have been known to have occurred at the earliest time when any insured listed under Paragraph 1.a. of 

SECTION II — WHO IS AN INSURED or 

any “employee” authorized by you to give 

or receive notice of an “occurrence” or 

claim: 

a. Reports all, or any part, of the “bodily 

injury” or “property damage” to us or 

any other insurer; 

b. Receives a written or verbal demand 

or claim for damages, or other relief, 

because of the “bodily injury” or “property damage”; or 

c. Becomes aware by any other means 

that “bodily injury” or “property damage” 

has occurred or has begun to occur. 

5. Damages because of “bodily injury” include damages claimed by any person or 

organization for care, loss of services or 

death resulting at any time from the “bodily injury”. 

2. With respect to coverage provided under this 

endorsement, Section II – Exclusions apply 

except as amended as follows: 

a. The following exclusions do not apply: 

(1) Paragraph 12.d. under Damage To 

Property, but only with respect to 

“property damage” to any goods or 

products (including optical products) or 

containers while in the care, custody 

or control of any insured in connection 

with the optical services of your business. 

(2) Paragraphs 11. Professional Services 

Or Treatment, 12.f. under Damage To 

Property, and 14. Damage To Your 

Work, but only with respect to “wrongful acts” in connection with the optical 

services of your business. 

b. The following are added: 

Criminal Acts 

“Bodily injury”, “property damage” or “personal and advertising injury” arising out of 

a criminal act including but not limited to 

sexual abuse or molestation or fraud 

committed by the insured or any person 

for whom the insured is legally responsible. 

Optometrist Or Ophthalmologist 

“Bodily injury”, “property damage” or “personal and advertising injury” arising out of 

the rendering of or failure to render professional services in the practice of optometry or ophthalmology. This includes 

any practice of: 

a. Prescribing or administering medicines 

or topical ocular pharmaceutical 

agents; 

b. Prescribing of ophthalmic lenses and 

similar products; or 

c. Diagnosing or treating visual defects, 

abnormal conditions or diseases of the 

human eye or adnexa. 

Partnership Or Association 

“Bodily injury”, “property damage” or “personal and advertising injury” arising out of 

acts, errors, omissions, or offenses of any 

insured as a member, partner, officer, director or shareholder of any professional 

partnership, association or corporation. 

Hospitals Or Other Enterprises 

“Bodily injury”, “property damage”, or “personal and advertising injury” arising out of 

acts, errors, omissions, or offenses of any 

insured as proprietor, hospital administrator, officer, stockholder or member of the 

board of directors, trustees or governors 

of any hospital, sanitarium, clinic with bed 

and board facilities, nursing home, laboratory or other enterprise not named in the 

Declarations. 

Damage To Property 

“Property damage” to any goods or products (including optical products) or containers which are prepared, sold, handled, 

or distributed by you, arising out of such 

goods, products or containers or any part 

of them. 

3. With respect to the coverage provided under 

this endorsement, the following is added to 

ROYAL PALM 000033

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CMP-4428 

Page 3 of 4 

©, Copyright, State Farm Mutual Automobile Insurance Company, 2008 

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

CONTINUED 

Paragraph 1.b.(1) of SECTION II — WHO IS 

AN INSURED: 

However, none of these “employees” or “volunteer workers” are insureds for: 

 “Bodily injury”, “property damage” or “personal and advertising injury” arising out of his or 

her providing or failing to provide professional 

services. However, your “employees” or “volunteer workers” are insureds with respect to 

their providing or failing to provide optical services in connection with your business, including the preparation, fitting, demonstration or 

distribution of ophthalmic lenses and similar 

products. 

4. With respect to the coverage provided under 

this endorsement, SECTION II — LIMITS OF 

INSURANCE is replaced by the following: 

SECTION II — OPTICIANS PROFESSIONAL 

LIMITS OF INSURANCE 

1. The Limits Of Insurance of SECTION II — 

LIABILITY, shown in the Declarations, 

and the rules below, fix the most we will 

pay regardless of the number of: 

a. Insureds; 

b. Premises insured; 

c. Claims made or “suits” brought; or 

d. Persons or organizations making 

claims or bringing “suits” 

2. The most we will pay for the sum of all 

damages because of all: 

a. “Bodily injury” and “property damage” 

arising out of any one “occurrence”; 

and 

b. “Personal and advertising injury” sustained by any one person or organization; 

is the Opticians Professional Liability Limit 

shown in the Declarations for the policy 

period during which the injury or damage 

first occurs and no additional limits or coverage will be available for the “occurrence” 

or offense under any additional years that 

this policy remains in force. 

3. Aggregate Limit. 

The most we will pay for the sum of all 

“bodily injury”, “property damage”, and 

“personal and advertising injury” is the 

Professional Aggregate Limit shown in the 

Declarations. 

The Opticians Limits Of Insurance apply 

separately to each consecutive annual period and to any remaining period of less 

than 12 months, starting with the beginning of the policy period shown in the Declarations, unless the policy period is 

extended after issuance for an additional 

period of less than 12 months. In that 

case, the additional period will be deemed 

part of the last preceding period for the 

purposes of determining the Limits Of Insurance. 

5. With respect to the coverage provided under 

this endorsement, SECTION II — DEFINITIONS are amended as follows: 

a. The definition of “occurrence” is replaced 

by the following: 

“Occurrence” means: 

a. Any “wrongful act”, together with all related “wrongful acts”, caused by one or 

more insureds, to any one person; and 

b. An accident, including continuous or 

repeated exposure to substantially the 

same general harmful conditions, involving goods or products (including 

optical products) or containers which 

are prepared, sold, handled or distributed by the insured at or from premises you own or rent (including any optical establishments which you have 

discontinued using), after possession 

of the goods or products have been relinquished to others. 

b. The following definition is added: 

“Wrongful act” means any act, error, omission or offense caused by the rendering of 

or failure to render professional services, 

in connection with the optical services of 

your business, including the preparation, 

fitting, demonstration or distribution of 

ophthalmic lenses and similar products. 

6. With respect to the coverage provided under 

this endorsement, Paragraph 7. of SECTION I 

AND SECTION II — COMMON POLICY 

CONDITIONS is replaced by the following: 

7. Other Insurance 

a. Opticians Professional Liability is excess over: 

(1) Any other insurance that insures 

for such “occurrences”; or 

ROYAL PALM 000034

Case 9:20-cv-80749-RS Document 12-2 Entered on FLSD Docket 06/11/2020 Page 34 of 107
CMP-4428 

Page 4 of 4 

(2) Any other primary insurance available to you covering liability for 

damages arising out of “occurrences” for which you have been 

added as an additional insured by 

attachment of an endorsement. 

b. When this insurance is excess, we will 

have no duty under Opticians Professional Liability to defend any claim or 

“suit” that any other insurer has a duty 

to defend. If no other insurer defends, 

we will undertake to do so; but we will 

be entitled to the insured’s rights 

against all those other insureds. 

c. The total insurance provided under 

Opticians Professional Liability and 

any other policy written by us will not 

exceed the highest Limit Of Insurance 

applicable under any one of the policies written by us. 

All other policy provisions apply. 

CMP-4428 

©, Copyright, State Farm Mutual Automobile Insurance Company, 2008 

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

ROYAL PALM 000035

Case 9:20-cv-80749-RS Document 12-2 Entered on FLSD Docket 06/11/2020 Page 35 of 107
CMP-4750 

Page 1 of 1 

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. 

CMP-4750 EXCLUSION — WINDSTORM OR HAIL (Florida) 

This endorsement modifies insurance provided under the following: 

BUSINESSOWNERS COVERAGE FORM 

1. Under Paragraph 1. of SECTION I — EXCLUSIONS the following is added: 

Windstorm Or Hail 

Windstorm or Hail. But, if windstorm or hail results in fire or explosion, we will pay for the loss 

caused by that fire or explosion. 

However, if the LOSS OF INCOME AND EXTRA EXPENSE endorsement is shown in the Declarations, this endorsement does not apply to the coverages provided by the LOSS OF INCOME AND 

EXTRA EXPENSE endorsement. At the time of loss, you must have other valid and collectible windstorm or hail insurance on the property covered by this policy. 

2. Under Paragraph 17. SECTION I — DEFINITIONS, windstorm or hail is deleted from "specified 

causes of loss". 

All other policy provisions apply. 

CMP-4750 

©, Copyright, State Farm Mutual Automobile Insurance Company, 2013 

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

ROYAL PALM 000036

Case 9:20-cv-80749-RS Document 12-2 Entered on FLSD Docket 06/11/2020 Page 36 of 107
CMP-4703.1 

Page 1 of 1 

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. 

CMP-4703.1 UTILITY INTERRUPTION — LOSS OF INCOME 

This endorsement modifies insurance provided under the following: 

LOSS OF INCOME AND EXTRA EXPENSE 

The following coverage is added to the EXTENSIONS OF COVERAGE: 

Utility Interruption 

a. We will pay for the “Loss Of Income” and any 

necessary “Extra Expense” you sustain due to 

the necessary “suspension” of your “operations” during the “period of restoration” at the 

described premises caused by an interruption 

in “utility service” to that premises. The interruption in “utility service” must result from an 

accidental direct physical loss by a “specified 

cause of loss” to the property described in Paragraph b.(2). 

The most we will pay in any one occurrence 

under this endorsement, regardless of the 

number of described premises, is the Limit Of 

Insurance for Utility Interruption – Loss Of Income shown in the Declarations. 

b. With respect to this endorsement the following 

definitions are added: 

(1) “Period of Restoration” means: 

(a) The period of time that begins when 

the “utility service” to the described 

premises has been interrupted for 

eight continuous hours; and 

(b) Ends when the interrupted “utility service” has been restored to the described premises for two continuous 

hours. 

(2) “Utility Service” means: 

(a) Water supply services, meaning the 

following types of property supplying 

water to the described premises: 

i. Pumping stations; and 

ii. Water mains. 

(b) Communication supply services, meaning property supplying communication 

services, including telephone, radio, 

microwave or television services, to the 

described premises, such as: 

i. Communication transmission lines, 

including optic fiber transmission 

lines; 

ii. Coaxial cables; and 

iii. Microwave relays except satellites. 

(c) Power supply services, meaning the 

following types of property supplying 

electricity, steam or gas to the described premises: 

i. Utility generating plants; 

ii. Switching stations; 

iii. Substations; 

iv. Transformers; and 

v. Transmission lines. 

There is no coverage under this endorsement to 

the extent coverage is provided under the Equipment Breakdown Extension of Coverage of your 

policy. 

All other policy provisions apply. 

CMP-4703.1 

©, Copyright, State Farm Mutual Automobile Insurance Company, 2012 

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

ROYAL PALM 000037

Case 9:20-cv-80749-RS Document 12-2 Entered on FLSD Docket 06/11/2020 Page 37 of 107
CMP-4874 

Page 1 of 6 

©, Copyright, State Farm Mutual Automobile Insurance Company, 2014 

CONTINUED 

YOUR POLICY PROVIDES COVERAGE FOR A CATASTROPHIC GROUND 

COVER COLLAPSE THAT RESULTS IN THE PROPERTY BEING CONDEMNED 

AND UNINHABITABLE. OTHERWISE, YOUR POLICY DOES NOT PROVIDE 

COVERAGE FOR SINKHOLE LOSSES. YOU MAY PURCHASE ADDITIONAL 

COVERAGE FOR SINKHOLE LOSSES FOR AN ADDITIONAL PREMIUM. 

CMP-4874 FLORIDA CATASTROPHIC GROUND COVER COLLAPSE COVERAGE 

This endorsement modifies insurance provided under the following: 

BUSINESSOWNERS COVERAGE FORM 

There is no coverage for loss caused by “catastrophic ground cover collapse” under Section I

of the policy other than that which is provided by 

this endorsement. The provisions of this endorsement apply only with respect to “catastrophic ground cover collapse”. 

1. With respect to “catastrophic ground cover 

collapse”, Coverage A – Buildings, Coverage B – Business Personal Property,

Property Not Covered, and Property Subject To Limitations are replaced by the following: 

Coverage A – Buildings 

Buildings, meaning the “principal commercial 

buildings” at each premises described in the 

Declarations. 

Coverage B – Business Personal Property 

Business Personal Property located inside the 

“principal commercial building” at the premises 

described in the Declarations including: 

1. Property, used in your business, that you 

own, lease from others or rent from others, or that is loaned to you; 

2. Property of others that is in your care, custody or control, unless provided for in Paragraph 1. immediately above; 

3. Tenant’s improvements and betterments. 

Improvements and betterments are fixtures, alterations, installations or additions: 

a. Made a part of the “principal commercial building” you occupy but do not 

own; and 

b. You acquired or made at your expense 

but cannot legally remove; 

4. Building glass, if you are a tenant and 

no Limit of Insurance is shown in the 

Declarations for Coverage A – Buildings. 

The glass must be owned by you or in 

your care, custody or control; and 

5. Property as described in Coverage A – 

Buildings, if you are a tenant and no Limit 

Of Insurance is shown in the Declarations 

for Coverage A – Buildings. The property 

must: 

a. Pertain to the described premises occupied but not owned by you; and 

b. Be your insurance responsibility according to the terms of your lease or 

rental agreement. 

Property Not Covered 

Covered Property does not include: 

1. The following property, even if they are attached to, extend from or abut any portion 

of the “principal commercial building” at 

the described premises, regardless of 

whether damaged by “catastrophic ground 

cover collapse” or the process of repairing 

the “principal commercial building”: 

a. Any appurtenant structures located on 

the premises that do not share the 

same foundation, floor slab or footings 

as a “principal commercial building”; 

b. Fences, walls, porches and carports, 

unless they are necessary for the 

structural integrity of the “principal 

commercial building”; 

c. Sidewalks, driveways, roadways, parking lots, bridges or other paved surfaces; 

d. Retaining walls; 

e. Outdoor swimming pools, outdoor hot 

tubs, and outdoor spas and their associated plumbing, filtering and circulating 

systems, even if they are covered or 

ROYAL PALM 000038

Case 9:20-cv-80749-RS Document 12-2 Entered on FLSD Docket 06/11/2020 Page 38 of 107
CMP-4874 

Page 2 of 6 

©, Copyright, State Farm Mutual Automobile Insurance Company, 2014 

CONTINUED 

enclosed by a roof, cage, awning, 

canopy or similar structure; 

f. Awnings, patio covers, pool cages and 

screen enclosures; 

g. Pool houses, pool decks, patios, decks 

or lanais; or 

h. Lawn sprinkling systems and other 

plumbing, sewage or utility systems 

outside the “principal commercial 

building” whether or not connected to 

or part of the internal building systems 

unless those systems are required for 

legal habitation of the “principal commercial building”; 

2. Aircraft, automobiles, motor trucks or other 

vehicles subject to motor vehicle registration; 

3. “Money” or “securities”; 

4. Contraband or property in the course of illegal transportation or trade; 

5. Land (including land necessary to support 

the “principal commercial building”). 

With respect to land the following are also 

not covered: 

a. Any cost required to replace, rebuild, 

excavate, grade, backfill, fill, stabilize 

or otherwise restore the land; or 

b. The cost of repair techniques designed 

to compensate for or prevent land instability to the “principal commercial 

building”; 

6. Outdoor radio or television antennas (including satellite dishes) and their lead-in 

wiring, masts or towers, outdoor signs 

(whether or not attached to buildings), and 

outdoor trees, shrubs, plants or lawns; 

7. Accounts, bills, food stamps, other evidences of debt, accounts receivable or 

“valuable papers and records”; 

8. “Computer(s)” which are permanently installed or designed to be permanently installed in any aircraft, automobile, 

watercraft, motor truck or other vehicle 

subject to motor vehicle registration. This 

paragraph does not apply to “computer(s)” 

while held as “stock”; 

9. “Electronic Data”. This paragraph does 

not apply to your “stock” of prepackaged 

software; or 

10. Animals, including those held as “stock”, 

whether inside the “principal commercial 

building” or not; 

Property Subject To Limitations 

We will not pay for loss to: 

1. Steam boilers, steam pipes, steam engines or steam turbines caused by any 

condition or event inside such equipment. 

But we will pay for loss to such equipment 

caused by an explosion of gases or fuel 

within the furnace of any fired vessel or 

within the flues or passages through which 

the gases of combustion pass. 

2. Hot water boilers or other water heating 

equipment, air conditioning units or refrigerating units caused by any condition or 

event inside such boilers or equipment, 

other than an explosion. 

3. Property that is missing, where the only 

evidence of the loss is a shortage disclosed on taking inventory, or other instances where there is no physical 

evidence to show what happened to the 

property. 

2. With respect to “catastrophic ground cover 

collapse”, SECTION I — COVERED CAUSES 

OF LOSS is replaced by the following: 

SECTION I — COVERED CAUSES OF 

LOSS 

We insure for: 

1. “Catastrophic ground cover collapse” to 

Covered Property; or 

2. Accidental direct physical loss to Business 

Personal Property caused by “catastrophic 

ground cover collapse”; 

unless the loss is: 

1. Excluded in SECTION I — EXCLUSIONS; 

or 

2. Limited in the Property Subject To Limitations provision. 

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©, Copyright, State Farm Mutual Automobile Insurance Company, 2014 

CONTINUED 

3. With respect to “catastrophic ground cover 

collapse”, the following is added to Paragraph 

1.b. Earth Movement under SECTION I — 

EXCLUSIONS: 

Earth movement does not include “catastrophic ground cover collapse” as described 

in this endorsement. With regard to “catastrophic ground cover collapse”, we do not insure against loss caused by abandonment of 

the property covered. 

4. With respect to “catastrophic ground cover 

collapse”, SECTION I — EXTENSIONS OF 

COVERAGE is replaced by the following: 

SECTION I — EXTENSIONS OF COVERAGE 

Subject to the terms and conditions applicable 

to SECTION I of this policy, the following Extensions Of Coverage apply separately to the 

“principal commercial building” at each location described in the Declarations. But the 

amount of insurance provided on any one described location will not be more than the Limit 

Of Insurance specified in each Extension Of 

Coverage if a limit is included in the extension. 

1. Debris Removal

a. We will pay your expense to remove 

debris of Covered Property caused by 

a Covered Cause Of Loss that occurs 

during the policy period. 

b. Debris Removal does not apply to 

costs to: 

(1) Extract “pollutants” from land or 

water; or 

(2) Remove, restore or replace polluted 

land or water. 

c. The amount we will pay for debris removal expense is limited to 25% of the 

sum of the deductible plus the amount 

that we pay for loss by a Covered 

Cause Of Loss to the Covered Property that has sustained loss. 

However, the most that we will pay for 

the total of the loss by a Covered 

Cause Of Loss plus debris removal 

expense is the Limit Of Insurance applicable to the Covered Property that 

has sustained loss. 

2. Preservation Of Property

If it is necessary to move Covered Property 

from the “principal commercial building” to 

preserve it from loss by a Covered Cause 

Of Loss, we will pay for any accidental direct physical loss to that property: 

a. While it is being moved or while temporarily stored at another location; and 

b. Only if the loss occurs within 30 days 

after the property is first moved. 

The amount we pay under this Extension 

Of Coverage will not increase the applicable Limit of Insurance. 

3. Increased Cost Of Construction And 

Demolition Cost 

a. This Extension Of Coverage applies 

only to “principal commercial buildings” 

insured on a replacement cost basis. 

b. In the event of damage by a Covered 

Cause Of Loss to a building that is 

Covered Property, we will pay the: 

(1) Increased costs incurred to comply 

with enforcement of an ordinance 

or law in the course of repair, rebuilding or replacement of damaged parts of that property; and 

(2) Cost to demolish and clear the site 

of undamaged parts of the same 

building, as a consequence of enforcement of an ordinance or law 

that requires demolition of such 

undamaged property; 

subject to the limitations stated in Paragraphs c. through i. of this Extension 

Of Coverage. 

c. The ordinance or law referred to in this 

Extension Of Coverage is an ordinance or law that is in force at the time 

of loss and regulates the demolition, 

repair, rebuilding, or replacement of 

buildings or establishes zoning or land 

use requirements at the described 

premises, and is in force at: 

(1) The described premises; or 

(2) Another premises, if such ordinance or law requires relocation. 

d. Under this Extension Of Coverage, we 

will not pay any costs due to an ordinance or law that: 

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CONTINUED 

(1) You were required to comply with 

before the loss, even when the 

building was undamaged; and 

(2) You failed to comply with. 

e. Under this Extension Of Coverage, we 

will not pay for: 

(1) The enforcement of any ordinance 

or law which requires demolition, 

repair, rebuilding, replacement, 

remodeling or remediation of property due to contamination by “pollutants“ or due to the presence, 

growth, proliferation, spread or any 

activity of “fungi“, wet or dry rot, virus, bacteria or other microorganisms; or 

(2) Any costs associated with the enforcement of any ordinance or law 

which 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 of “pollutants“, “fungi“, wet or dry rot, virus, 

bacteria or other microorganisms. 

f. The most we will pay under this Extension Of Coverage, for each described premises insured under 

SECTION I — PROPERTY, is the 

lesser of: 

(1) The amount you actually spend: 

(a) For the increased cost to repair, rebuild or replace the 

building at the described or another premises in the same 

general vicinity if relocation is 

required by ordinance or law, 

but not more than a building of 

the same height, floor area, 

and style on the same or similar premises as the damaged 

building; and 

(b) To demolish and clear the site 

of the undamaged parts of the 

building at the described premises caused by enforcement of 

any ordinance or law; or 

(2) The percentage for Increased Cost 

of Construction and Demolition 

Cost applied to the Limit Of Insurance applicable to that damaged 

building as shown in the Declarations. If a damaged building is 

covered under a blanket Limit Of 

Insurance which applies to more 

than one building, then the most 

we will pay under this Extension Of 

Coverage is the amount determined 

by applying the percentage as 

shown in the Declarations to the 

risk amount shown in our records 

as of the most recent Declarations 

applicable to that damaged building. 

The amount we pay under this Extension Of Coverage will not increase the 

applicable Limit Of Insurance. 

g. With respect to this Extension Of Coverage: 

(1) We will not pay for the: 

(a) Increased Cost Of Construction: 

i. Until the property is actually 

repaired, rebuilt or replaced, at the described or 

another premises; and 

ii. Unless the repairs, rebuilding or replacement are 

made as soon as reasonably possible after the loss, 

not to exceed two years. 

We may extend this period 

in writing during the two 

years. 

(b) Loss of value for the undamaged portion of the building 

caused by enforcement of any 

ordinance or law. 

(2) If the building is repaired, rebuilt or 

replaced at the described premises, 

or if you elect to rebuild at another 

premises, the most we will pay for 

the Increased Cost Of Construction is the increased cost of construction at the described 

premises. 

(3) If the ordinance or law requires relocation to another premises, the 

most we will pay for the Increased 

Cost Of Construction is the increased cost of construction at the 

new premises. 

h. This Extension Of Coverage is not 

subject to the terms of the Ordinance 

Or Law Exclusion, to the extent that 

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©, Copyright, State Farm Mutual Automobile Insurance Company, 2014 

CONTINUED 

such Exclusion would conflict with the 

provisions of this Extension Of Coverage. 

i. The amount payable under this Extension Of Coverage, as stated in 

Paragraph f. of this Extension Of Coverage, is not subject to Paragraph 

e.(4)(a)iv. under Loss Payment of 

SECTION I — CONDITIONS. 

5. With respect to “catastrophic ground cover 

collapse”, Paragraph 1.b. Appraisal under 

SECTION I — CONDITIONS does not apply. 

6. The following definitions apply when used with 

this Florida Catastrophic Ground Cover Collapse Coverage endorsement: 

a. “Catastrophic ground cover collapse” 

means geological activity that results in all 

the following: 

(1) The abrupt collapse of the ground 

cover; 

(2) A depression in the ground cover 

clearly visible to the naked eye; 

(3) “Structural damage” to the “principal 

commercial building”, including the 

foundation; and 

(4) The “principal commercial building” being condemned and ordered to be vacated by the governmental agency 

authorized by law to issue such an order for that structure. 

“Catastrophic ground cover collapse” does 

not include damage consisting merely of 

the settling or cracking of a foundation, 

structure or building. 

b. “Primary structural member” means a 

structural element designed to provide 

support and stability for the vertical or lateral loads of the overall structure. 

c. “Primary structural system” means an assemblage of “primary structural members”. 

d. “Principal commercial building” means the 

building permanently affixed to the realty 

from which you conduct your primary operation or business, including its foundation, floor slab and footings supporting the 

building, and garages or other structures 

sharing the same foundation, floor slab or 

footings. 

e. “Structural damage” means a “principal 

commercial building”, regardless of the 

date of its construction, has experienced 

the following: 

(1) Interior floor displacement or deflection 

in excess of acceptable variances as 

defined in ACI 117-90 or the Florida 

Building Code, which results in settlement related damage to the interior 

such that the interior building structure 

or members become unfit for service 

or represents a safety hazard as defined within the Florida Building Code; 

(2) Foundation displacement or deflection 

in excess of acceptable variances as 

defined in ACI 318-95 or the Florida 

Building Code, which results in settlement related damage to the “primary 

structural members” or “primary structural systems” that prevents those 

members or systems from supporting 

the loads and forces they were designed to support to the extent that 

stresses in those “primary structural 

members” or “primary structural systems” exceeds one and one-third the 

nominal strength allowed under the 

Florida Building Code for new buildings of similar structure, purpose or location; 

(3) Damage that results in listing, leaning, 

or buckling of the exterior load bearing 

walls or other vertical “primary structural members” to such an extent that 

a plumb line passing through the center of gravity does not fall inside the 

middle one-third of the base as defined within the Florida Building Code; 

(4) Damage that results in the “principal 

commercial building”, or any portion of 

the “principal commercial building” 

containing “primary structural members” or “primary structural systems”, 

being significantly likely to imminently 

collapse because of the movement or 

instability of the ground within the influence zone of the supporting ground 

within the sheer plane necessary for 

the purpose of supporting such “principal commercial building” as defined 

within the Florida Building Code; or 

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(5) Damage occurring on or after October 

15, 2005, that qualifies as “substantial 

structural damage” as defined in the 

Florida Building Code. 

h. “Substantial structural damage” means a 

condition where: 

(1) In any story, the elements of the lateral-force-resisting system have suffered damage such that the lateral 

load-carrying capacity of the structure 

in any horizontal direction has been 

reduced by more than 20 percent from 

its pre-damaged condition; or 

(2) The capacity of any vertical loadcarrying component, or any group of 

such components, that supports more 

than 30 percent of the total area of the 

structure’s floor(s) and roof(s) has 

been reduced more than 20 percent 

from its pre-damaged condition and 

the remaining capacity of such affected 

elements, with respect to all dead and 

live loads, is less than 75 percent of 

that required by the Florida Building 

Code, Building for new buildings of 

similar structure, purpose and location. 

7. With respect to “catastrophic ground cover 

collapse”, the Ordinance Or Law endorsement, when shown on the Declarations, applies but only with regard to the “principal 

commercial building”. 

All other policy provisions apply. 

CMP-4874 

©, Copyright, State Farm Mutual Automobile Insurance Company, 2014 

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CMP-4825

Page 1 of 1

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

CMP-4825 BRANDS AND LABELS

This endorsement modifies insurance provided under the following:

BUSINESSOWNERS COVERAGE FORM

The following is added under SECTION I —

EXTENSIONS OF COVERAGE:

Brands And Labels

a. If branded or labeled merchandise that is 

Covered Property is damaged by a Covered 

Cause Of Loss, we may take all or any part of 

the property at an agreed or appraised value. 

If so, you may:

(1) Stamp the word salvage on the merchandise or its containers, if the stamp will not 

physically damage the merchandise; or

(2) Remove the brands or labels, if doing so will 

not physically damage the merchandise. 

You must relabel the merchandise or its 

containers to comply with the law.

b. We will pay reasonable costs you incur to 

perform the activity described in a.(1) or 

a.(2) above. But the most we will pay for 

these costs in any one occurrence under 

this Extension Of Coverage is the Limit Of 

Insurance for Brands And Labels shown in 

the Declarations. 

The amount we pay under this Extension Of 

Coverage is an additional amount of insurance.

All other policy provisions apply.

CMP-4825

©, Copyright, State Farm Mutual Automobile Insurance Company, 2008

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

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CMP-4561.1 

Page 1 of 5 

©, Copyright, State Farm Mutual Automobile Insurance Company, 2015 

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

CONTINUED 

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. 

CMP-4561.1 POLICY ENDORSEMENT 

This endorsement modifies insurance provided under the following: 

BUSINESSOWNERS COVERAGE FORM 

1. BUSINESSOWNERS COVERAGE FORM 

TABLE OF CONTENTS is amended as follows: 

a. The title Electronic Data is changed to Access Or Disclosure Of Confidential Or 

Personal Information And Data-related Liability. 

b. The title Recording And Distribution Of 

Material or Information In Violation Of Law 

is changed to Recording And Distribution 

Of Material. 

2. Paragraph 2.f. Dishonesty under SECTION I – 

EXCLUSIONS is replaced by the following: 

f. Dishonesty 

(1) Dishonest or criminal acts by you, anyone else with an interest in the property, or any of your or their partners, 

“members”, officers, “managers“, employees, directors, trustees, or authorized representatives, whether acting 

alone or in collusion with each other or 

with any other party; or 

(2) Theft by any person to whom you entrust the property for any purpose, 

whether acting alone or in collusion 

with any other party. 

This exclusion applies whether or not an act 

occurs during your normal hours of operation. 

This exclusion does not apply to acts of destruction by your employees; but theft by your 

employees is not covered. 

With respect to accounts receivable and “valuable papers and records”, this exclusion 

does not apply to carriers for hire.

3. SECTION I — EXTENSIONS OF COVERAGE is amended as follows: 

a. Paragraph 4.a.(1) under Collapse is replaced by the following: 

(1) Collapse means an abrupt falling down 

or caving in of a building or any part of 

a building;

b. Paragraph 5. is replaced by the following: 

5. Water Damage, Other Liquids, Powder Or Molten Material Damage 

If loss caused by covered water or 

other liquid, powder, or molten material 

occurs, we will also pay the cost to 

tear out and replace only that particular part of the covered building or 

structure necessary to gain access to 

the specific point of that system or appliance from which the water or other 

substance escaped. 

We will not pay the cost to repair any 

defect that caused the loss; but we will 

pay the cost to repair or replace damaged parts of fire extinguishing equipment if the damage: 

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

b. Is directly caused by freezing. 

The amount we pay under this Extension of Coverage will not increase 

the applicable Limit of Insurance. 

c. Paragraph 13. is replaced by the following: 

13. Personal Property Off Premises 

You may extend the insurance provided 

by this coverage form to apply to Covered 

Property, other than “money” and “securities”, “valuable papers and records”, or accounts receivable, while it 

is in the course of transit or at another 

premises. The most we will pay for 

loss in any one occurrence under this 

Extension Of Coverage is the Limit Of 

Insurance for Personal Property Off 

Premises shown in the Declarations. 

The amount we pay under this Extension Of Coverage is an additional 

amount of insurance. 

If the Covered Property is located at 

another premises you own, lease, operate, or regularly use, the insurance 

provided under this extension applies 

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CMP-4561.1 

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©, Copyright, State Farm Mutual Automobile Insurance Company, 2015 

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CONTINUED 

only if the loss occurs within 90 days 

after the property is first moved. 

The Other Insurance Condition contained in SECTION I AND SECTION II 

— COMMON POLICY CONDITIONS 

does not apply to this Extension Of 

Coverage. The insurance provided 

under this Extension Of Coverage is 

primary and does not contribute with 

any other insurance. 

d. The following is added to Paragraph 22.e. 

under Equipment Breakdown: 

Paragraph 5.b. under Coverage B – 

Business Personal Property is replaced 

by: 

b. Be your responsibility to maintain or 

insure according to the terms of your 

lease or rental agreement. 

e. The following is added: 

Business Personal Property In Portable 

Storage Units 

You may extend the insurance provided by 

this coverage form to apply to Business 

Personal Property, other than “money” and 

“securities”, “valuable papers and records”, or accounts receivable, while temporarily stored in a portable storage unit 

(including a detached trailer) located within 100 feet of the described premises. 

The most we will pay for loss under this 

Extension Of Coverage is $10,000. 

The amount we pay under this Extension 

Of Coverage will not increase the applicable Limit Of Insurance. 

Coverage will end 90 days after Business 

Personal Property has been placed in the 

storage unit. Coverage does not apply if 

the storage unit itself has been in use at 

the described premises for more than 90 

consecutive days, even if the Business 

Personal Property has been stored there 

for 90 or fewer days at the time of loss. 

4. SECTION II — LIABILITY is amended as 

follows: 

a. Section II – Exclusions is amended as 

follows: 

(1) The following is added to Paragraph 3. 

Liquor Liability: 

This exclusion applies even if the 

claims allege negligence or other 

wrongdoing in the supervision, hiring, 

employment, training, or monitoring of 

others by an insured, or providing or 

failing to provide transportation with 

respect to any person that may be under 

the influence of alcohol if the “occurrence” which caused the “bodily injury” 

or “property damage” involved that 

which is described in Paragraph 3.a.

(2) Paragraph 8.f. under Aircraft, Auto 

Or Watercraft is replaced by the following: 

f. “Bodily injury” or “property damage” arising out of: 

(1) The operation of machinery or 

equipment that is attached to, 

or part of, a land vehicle that 

would qualify under the definition of “mobile equipment” if it 

were not subject to a compulsory or financial responsibility 

law or other motor vehicle insurance or motor vehicle registration law where it is licensed 

or principally garaged; 

(2) The operation of any of the following machinery or equipment: 

(a) Cherry pickers and similar 

devices mounted on automobile or truck chassis and 

used to raise or lower 

workers; and 

(b) Air compressors, pumps, 

and generators, including 

spraying, welding, building 

cleaning, geophysical exploration, lighting, and well 

servicing equipment; or

(3) The operation of your business 

from a land vehicle: 

(a) While it is parked and functioning, other than “loading 

and unloading”, as a premises for your business operations; and 

(b) That would qualify under the 

definition of “mobile equipment” if it were not subject 

to a compulsory or financial 

responsibility law or other 

motor vehicle insurance or 

motor vehicle registration 

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CMP-4561.1 

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©, Copyright, State Farm Mutual Automobile Insurance Company, 2015 

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

CONTINUED 

law where it is licensed or 

principally garaged. 

(3) Paragraphs 17.b. and 17.c. under 

Personal And Advertising Injury are 

replaced by the following: 

b. Arising out of oral or written publication of material, in any manner, if 

done by or at the direction of the 

insured with knowledge of its falsity; 

c. Arising out of oral or written publication of material, in any manner, 

whose first publication took place 

before the beginning of the policy 

period; 

(4) The last paragraph of 17.h. under 

Personal And Advertising Injury is 

replaced by the following: 

For the purposes of this exclusion, the 

placing of frames, borders or links, or 

advertising, for you or others anywhere on the Internet, is not by itself, 

considered the business of advertising, broadcasting, publishing or telecasting; 

(5) Paragraphs 18. Electronic Data and 

19. Recording And Distribution Of 

Material In Violation Of Law are replaced by the following: 

18. Access Or Disclosure Of Confidential Or Personal Information 

And Data-related Liability 

a. Damages arising out of any 

access to or disclosure of any 

person’s or organization’s confidential or personal information, including patents, trade 

secrets, processing methods, 

customer lists, financial information, credit card information, 

health information, or any other 

type of nonpublic information; 

or 

b. Damages arising out of the 

loss of, loss of use of, damage 

to, corruption of, inability to access, or inability to manipulate 

electronic data.

This exclusion applies even if damages are claimed for notification 

costs, credit monitoring expenses, 

forensic expenses, public relations 

expenses, or any other loss, cost or 

expense incurred by you or others 

arising out of that which is described 

in Paragraph a. or b. above. 

As used in this exclusion, electronic 

data means information, facts, or 

computer programs stored as or on, 

created or used on, or transmitted 

to or from computer software (including systems and applications 

software), on hard or floppy disks, 

CD-ROMs, tapes, drives, cells, data 

processing devices, or any other 

repositories of computer software 

which are used with electronically 

controlled equipment. The term 

computer programs, referred to in 

the foregoing description of electronic data, means a set of related 

electronic instructions which direct 

the operations and functions of a 

computer or device connected to it, 

which enable the computer or device to receive, process, store, retrieve, or send data.

19. Recording and Distribution of 

Material 

Damages arising directly or indirectly out of any communication, 

by or on behalf of any insured, that 

violates or is alleged to violate: 

a. The Telephone Consumer Protection Act (TCPA), CAN-SPAM 

Act of 2003, Fair Credit Reporting Act (FCRA), or Fair and Accurate Credit Transaction Act 

(FACTA); including any regulations and any amendment of or 

addition to such statutes; 

b. Any federal, state or local law, 

statute, ordinance, or regulation, in addition to Paragraph a.

above, that addresses, prohibits 

or limits the printing, dissemination, disposal, collecting, recording, sending, transmitting, 

communicating, or distribution 

of material or information; or 

c. Any other federal, state or local 

law, statute, ordinance, or 

regulation that may provide a 

basis for a separate claim or 

cause of action arising out of 

any communication referenced 

in Paragraphs a. or b. above. 

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©, Copyright, State Farm Mutual Automobile Insurance Company, 2015 

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CONTINUED 

b. Paragraph 1.d.(2) under Coverage M – 

Medical Expenses is replaced by the following: 

(2) Executes authorization to allow us to 

obtain copies of medical bills, medical 

records, and any other information we 

deem necessary to substantiate the 

claim. 

Such authorizations must not: 

(a) Restrict us from performing our 

business functions in: 

i. Obtaining records, bills, information, and data; or 

ii. Using or retaining records, 

bills, information, and data collected or received by us; 

(b) Require us to violate federal or 

state laws or regulations; 

(c) Prevent us from fulfilling our data 

reporting and data retention obligations to insurance regulators; or 

(d) Prevent us from disclosing claim 

information and data: 

i. To enable performance of our 

business functions; 

ii. To meet our reporting obligations to insurance regulators; 

iii. To meet our reporting obligations to insurance data consolidators; and 

iv. As otherwise permitted by law. 

If the holder of the information refuses to provide it to us despite 

the authorization, then at our request the person making claim or 

his or her legal representative must 

obtain the information and promptly 

provide it to us; and 

c. SECTION II — WHO IS AN INSURED is 

amended as follows: 

(1) Paragraph 1.c. does not apply. 

(2) Paragraphs 2.b.(1) and (4) are replaced by the following: 

(1) “Employees” with respect to “bodily 

injury” to: 

(a) Any co-“employee” arising out 

of and in the course of the co-

“employee’s” employment or 

while performing duties related 

to the conduct of your business; or 

(b) The spouse, child, parent, 

brother, or sister of that co-

“employee” as a consequence 

of Paragraph (a) above; 

(4) The owner of a “non-owned auto” 

or any agent of or any person or 

entity employed by such owner. 

d. Paragraph 2.b. under Financial Responsibility Laws of SECTION II — GENERAL CONDITIONS does not apply. 

e. SECTION II — DEFINITIONS is amended 

as follows: 

(1) Paragraph 2. is replaced by the following: 

2. “Auto” means: 

a. A land motor vehicle, trailer, or 

semitrailer designed for travel 

on public roads, including any 

attached machinery or equipment; or 

b. Any other land vehicle that is 

subject to a compulsory or financial responsibility law or 

other motor vehicle insurance 

or motor vehicle registration 

law where it is licensed or principally garaged. 

However, “auto” does not include 

“mobile equipment”. 

(2) The following is added to Paragraph 

15. “mobile equipment”: 

However, “mobile equipment” does not 

include land vehicles that are subject 

to a compulsory or financial responsibility law or other motor vehicle insurance or motor vehicle registration 

where they are licensed or principally 

garaged. Land vehicles subject to a 

compulsory or financial responsibility 

law or other motor vehicle insurance 

law or motor vehicle registration law 

are considered “autos”. 

(3) Paragraphs 18.f. and g. of “personal 

and advertising injury” are replaced by 

the following: 

f. The use of another’s advertising 

idea in your “advertisement”; 

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CMP-4561.1 

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g. Infringing upon another’s trade 

dress or slogan in your “advertisement”, or 

h. Infringement of another’s copyright, patent, trademark, or trade 

secret. 

f. The following are added to SECTION I 

AND SECTION II – COMMON POLICY 

CONDITIONS: 

Our Rights Regarding Claim Information 

a. We will collect, receive, obtain, use, 

and retain all the items described in 

Paragraph b.(1) below and use and retain the information described in Paragraph b.(3)(b) below, in accordance 

with applicable federal and state laws 

and regulations and consistent with the 

performance of our business functions. 

b. Subject to Paragraph a. above, we will 

not be restricted in or prohibited from: 

(1) Collecting, receiving, or obtaining 

records, receipts, invoices, medical 

bills, medical records, wage information, salary information, employment information, data, and any 

other information; 

(2) Using any of the items described in 

Paragraph b.(1) above; or 

(3) Retaining: 

(a) Any of the items in Paragraph 

b.(1) above; or 

(b) Any other information we have 

in our possession as a result of 

our processing, handling, or 

otherwise resolving claims 

submitted under this policy. 

c. We may disclose any of the items in 

Paragraph b.(1) above and any of the 

information described in Paragraph 

b.(3)(b) above: 

(1) To enable performance of our 

business functions; 

(2) To meet our reporting obligations 

to insurance regulators; 

(3) To meet our reporting obligations 

to insurance data consolidators; 

(4) To meet other obligations required 

by law; and 

(5) As otherwise permitted by law. 

d. Our rights under Paragraphs a., b., 

and c. above shall not be impaired by 

any: 

(1) Authorization related to any claim 

submitted under this policy; or 

(2) Act or omission of an insured or a 

legal representative acting on an 

insured’s behalf. 

Electronic Delivery 

With your consent, we may electronically 

deliver any document or notice, including 

a notice to renew, nonrenew, or cancel, 

instead of mailing it or delivering it by other 

means. Proof of transmission will be sufficient proof of notice. 

All other policy provisions apply. 

CMP-4561.1 

©, Copyright, State Farm Mutual Automobile Insurance Company, 2015 

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

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CMP-4706 

Page 1 of 1 

CMP-4706 

©, Copyright, State Farm Mutual Automobile Insurance Company, 2008 

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

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. 

CMP-4706 BACK-UP OF SEWER OR DRAIN 

This endorsement modifies insurance provided under the following: 

BUSINESSOWNERS COVERAGE FORM 

1. We will pay for accidental direct physical loss to 

Covered Property described under Coverage B 

– Business Personal Property directly and 

immediately caused solely by water or sewage: 

a. That enters through a sewer or drain located inside the interior of the structure; or 

b. Which enters into and overflows from within a sump pump, sump pump well, or any 

other system located inside the interior of 

the structure, designed to remove subsurface water drained from the foundation 

area. 

2. Coverage provided by this endorsement does 

not apply if: 

a. You fail to keep a sump pump or its related 

equipment in proper working condition; 

b. You fail to perform the routine maintenance or repair necessary to keep a sewer or drain free from obstructions; or 

c. The loss occurs, or is in progress within 

the first 5 days of the inception of this endorsement. However, this provision does 

not apply when the coverage is continued 

as part of your policy renewal. 

3. The most we will pay for loss in any one occurrence, at the described premises, under 

this endorsement is the Limit Of Insurance for 

Back-up Of Sewer Or Drain shown in the Declarations. 

The amount that we pay under this endorsement is an additional amount of insurance. 

4. With respect to the coverage provided under 

this endorsement, Paragraph 1.h. Water of 

SECTION I — EXCLUSIONS is replaced by 

the following: 

h. Water

(1) Flood, surface water, waves (including 

tidal wave, tsunami, and seiche), tides, 

tidal water, overflow of any body of 

water, or spray or surge from any of 

these, all whether driven by wind or 

not, except as specifically provided in 

the BACK-UP OF SEWER OR DRAIN 

endorsement; 

(2) Mudslide or mudflow; 

(3) Water or sewage that backs up or 

overflows from a sewer, drain or sump, 

except as specifically provided in the 

BACK-UP OF SEWER OR DRAIN endorsement; 

(4) Water or sewage under the ground 

surface pressing on, or flowing or 

seeping through: 

(a) Foundations, walls, floors or paved 

surfaces; 

(b) Basements, whether paved or not; 

or 

(c) Doors, windows or other openings; 

or 

(5) Material carried or otherwise moved by 

any of the Water, as described in Paragraphs (1) through (4) above. 

But if Water, as described in Paragraphs 

(1) through (5), results in accidental direct 

physical loss by fire, explosion or sprinkler 

leakage, we will pay for the loss caused by 

that fire, explosion or sprinkler leakage. 

5. The following provisions, if part of your policy, 

do not apply to loss covered under this endorsement: 

a. Inflation Coverage and Business Personal 

Property Limit Seasonal Increase under 

SECTION I — LIMITS OF INSURANCE; 

b. SECTION I — EXTENSIONS OF COVERAGE other than: 

(1) Debris Removal; 

(2) Preservation Of Property; and 

(3) Pollution Clean Up And Removal; 

c. LOSS OF INCOME AND EXTRA EXPENSE; and 

d. Any endorsement provisions that add coverage for any type of direct, indirect or 

consequential losses. 

All other policy provisions apply. 

ROYAL PALM 000050

Case 9:20-cv-80749-RS Document 12-2 Entered on FLSD Docket 06/11/2020 Page 50 of 107
CMP-4704.1 

Page 1 of 1 

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. 

CMP-4704.1 DEPENDENT PROPERTY — LOSS OF INCOME 

This endorsement modifies insurance provided under the following: 

LOSS OF INCOME AND EXTRA EXPENSE 

The following coverage is added to the EXTENSIONS OF COVERAGE: 

Dependent Properties 

a. We will pay for the “Loss Of Income” and any 

necessary “Extra Expense” you sustain due to 

the necessary “suspension” of your “operations” during the “period of restoration”. The 

“suspension” must be caused by an accidental direct physical loss to “dependent 

property” caused by a Covered Cause Of 

Loss. 

However, coverage under this endorsement 

does not apply when the only loss to “dependent property” is loss to “electronic data”, including destruction or corruption of “electronic data”. 

If the “dependent property” sustains loss to 

“electronic data” and other property, coverage 

will not continue once the other property is repaired, rebuilt or replaced. 

The most we will pay in any one occurrence 

under this endorsement, regardless of the 

number of described premises, is the Limit Of 

Insurance for Dependent Property – Loss Of 

Income shown in the Declarations. 

b. We will reduce the amount payable under this 

endorsement to the extent you can resume 

“operations”, in whole or in part, by using any 

other available: 

(1) Source of materials; or 

(2) Outlet for your products. 

c. With respect to this endorsement the following 

definitions are added: 

(1) “Dependent property” means property 

owned by others whom you depend on to: 

(a) Deliver materials or services to you or 

to others for your account. But services does not mean water supply services, power supply services, or 

communication services, including 

services relating to internet access or 

access to any electronic network; 

(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. 

The “dependent property” must be located 

in the coverage territory of this policy. 

(2) “Period of restoration”, with respect to dependent property, means the period of 

time that: 

(a) Begins immediately after the time of accidental direct physical loss caused by 

any 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. 

The “period of restoration” 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 

of “pollutants”. 

The expiration date of this policy will not 

reduce the “period of restoration”. 

All other policy provisions apply. 

CMP-4704.1 

©, Copyright, State Farm Mutual Automobile Insurance Company, 2012 

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

ROYAL PALM 000051

Case 9:20-cv-80749-RS Document 12-2 Entered on FLSD Docket 06/11/2020 Page 51 of 107
CMP-4710 

Page 1 of 2 

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. 

CMP-4710 EMPLOYEE DISHONESTY 

This endorsement modifies insurance provided under the following: 

BUSINESSOWNERS COVERAGE FORM 

The following is added as an Extension of Coverage under SECTION I — EXTENSIONS OF 

COVERAGE. 

Employee Dishonesty 

1. We will pay for direct physical loss to Business Personal Property and “money” and “securities” resulting from dishonest acts 

committed by any of your “employees” acting 

alone or in collusion with other persons (except you or your partner) with the manifest intent to: 

a. Cause you to sustain loss; and 

b. Obtain financial benefit (other than salaries, commissions, fees, bonuses, promotions, awards, profit sharing, pensions or 

other “employee” benefits earned in the 

normal course of employment) for: 

(1) Any “employee”; or 

(2) Any other person or organization intended by that “employee” to receive 

that benefit. 

2. The most we will pay for loss under this Coverage in any one occurrence, regardless of 

the number of described premises, is the Limit 

Of Insurance for Employee Dishonesty shown 

in the Declarations, even if the occurrence includes more than one policy period. 

The amount we pay under this Extension of 

Coverage is an additional amount of insurance. 

Regardless of the amount of the Basic Deductible, the most we will deduct from any 

loss under this Extension of Coverage in any 

one occurrence is the applicable deductible 

listed for Employee Dishonesty under Special 

Deductibles shown in the Declarations. 

3. We will determine the value of: 

a. “Money” at its face value; and 

b. “Securities” at their value at the close of 

business on the day the loss is discovered. 

4. All loss: 

a. Caused by one or more persons; or 

b. Involving a single act or series of acts; 

is considered one occurrence. 

5. With respect to coverage provided by this endorsement: 

a. Paragraph 2. of Property Not Covered

does not apply. 

b. Paragraph 1.d. of Property Subject To 

Limitations does not apply. 

c. Paragraph 2.f. of SECTION I — EXCLUSIONS does not apply. 

d. The first paragraph under SECTION I — 

EXTENSIONS OF COVERAGE does not 

apply. 

6. We will not pay for loss: 

a. Resulting from any dishonest or criminal 

act that you or any of your partners commit whether acting alone or in collusion 

with other persons. 

b. When the only proof of its existence or 

amount is: 

(1) An inventory computation; or 

(2) A profit and loss computation. 

7. This Coverage does not apply to any “employee” immediately upon discovery by: 

a. You; or 

b. Any of your partners, “members”, “managers”, officers, directors, or trustees not 

in collusion with the “employee”; 

of any dishonest act committed by that “employee” before or after being hired by you. 

8. We will pay only for loss you sustain through 

acts committed or events occurring during the 

policy period. 

These acts must be discovered no later than 

one year from the end of the policy period. 

9. Regardless of the number of years this policy 

remains in force or the number of premiums 

paid, no Limit Of Insurance cumulates from 

year to year or period to period. 

©, Copyright, State Farm Mutual Automobile Insurance Company, 2008 

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

CONTINUED 

ROYAL PALM 000052

Case 9:20-cv-80749-RS Document 12-2 Entered on FLSD Docket 06/11/2020 Page 52 of 107
CMP-4710 

Page 2 of 2 

10. If any loss is covered: 

a. Partly by this insurance; and 

b. Partly by any prior cancelled or terminated 

insurance or expired policy period that we 

or any affiliate had issued to you or any 

predecessor in interest; 

the most we will pay is the larger of the 

amount recoverable under this insurance or 

the prior insurance. 

11. If you (or any predecessor in interest) sustained loss during the policy period of any prior insurance that you could have recovered 

under that insurance except that the time within which to discover loss had expired, we will 

pay for it under this Coverage, provided: 

a. This Coverage became effective at the 

time of cancellation or termination of the 

prior insurance; and 

b. The loss would have been covered by this 

Coverage had it been in effect when the 

acts or events causing the loss were 

committed or occurred. 

12. The insurance under Paragraph 11. above is 

part of, not in addition to, the Limit Of Insurance applying to this Coverage and is limited 

to the lesser of the amount recoverable under: 

a. This Coverage as of its effective date; or 

b. The prior insurance had it remained in effect. 

13. With respect to this Coverage “employee” 

means: 

a. Any natural person: 

(1) While in your service or for 30 days after termination of service; 

(2) Who you compensate directly by salary, wages or commissions; and 

(3) Who you have the right to direct and 

control while performing services for 

you; 

b. Any “manager”, director, officer or trustee, 

whether compensated or not, except while 

performing acts outside the scope of their 

normal duties; 

c. Any natural person who is furnished temporarily to you: 

(1) To substitute for a permanent “employee” as described in Paragraph a.

above, who is on leave; or 

(2) To meet seasonal or short-term work 

load conditions; 

d. Any natural person who is leased to you 

under a written agreement between you 

and a labor leasing firm, to perform duties 

related to the conduct of your business, 

but does not mean a temporary “employee” as described in Paragraph c. above; 

e. Any natural person who is a former “employee”, director, officer, partner, “member”, “manager”, representative or trustee 

retained as a consultant while performing 

services for you; or 

f. Any natural person who is a guest student 

or intern pursuing studies or duties, excluding, however, any such person while 

having care and custody of property outside any building you occupy in conducting your business. 

But this does not include any agent, broker, 

factor, commission merchant, consignee, independent contractor or representative of the 

same general character. 

All other policy provisions apply. 

CMP-4710 

©, Copyright, State Farm Mutual Automobile Insurance Company, 2008 

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

ROYAL PALM 000053

Case 9:20-cv-80749-RS Document 12-2 Entered on FLSD Docket 06/11/2020 Page 53 of 107
CMP-4709 

Page 1 of 1 

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. 

CMP-4709 MONEY AND SECURITIES 

This endorsement modifies insurance provided under the following: 

BUSINESSOWNERS COVERAGE FORM 

The following is added as an Extension of Coverage under SECTION I — EXTENSIONS OF 

COVERAGE. 

Money And Securities

1. We will pay for loss of “money” and “securities” used in your business while at a bank or 

savings institution, within your living quarters 

or the living quarters of your partners or any 

employee having use and custody of the 

property, at the described premises, or in 

transit between any of these places, resulting 

directly from: 

a. Theft, meaning any act of stealing; 

b. Disappearance; or 

c. Destruction. 

2. The most we will pay for loss to “money” and 

“securities” in any one occurrence under this 

Coverage is: 

a. The Limit Of Insurance for Money And Securities (On Premises) shown in the Declarations while: 

(1) In or at the described premises; or 

(2) Within a bank or savings institution; 

and 

b. The Limit Of Insurance for Money And Securities (Off Premises) shown in the Declarations while anywhere else. 

The amount we pay under this Extension of 

Coverage is an additional amount of insurance. 

Regardless of the amount of the Basic Deductible, the most we will deduct from any 

loss under this Extension of Coverage in any 

one occurrence is the applicable deductible 

listed for Money And Securities under Special 

Deductibles shown in the Declarations. 

3. We will determine the value of: 

a. “Money” at its face value; and 

b. “Securities” at their value at the close of 

business on the day the loss is discovered. 

4. With respect to coverage provided by this endorsement: 

a. Paragraph 2. of Property Not Covered

does not apply. 

b. Paragraphs 1.c. and 1.d. of Property 

Subject To Limitations does not apply.

5. All loss: 

a. Caused by one or more persons; or 

b. Involving a single act or series of related 

acts; 

is considered one occurrence. 

6. We will not pay under this Extension Of Coverage for loss consisting of one or more of the 

following: 

a. Resulting from accounting or arithmetical 

errors or omissions; 

b. Due to the giving or surrendering of property in any exchange or purchase; or 

c. Of property contained in any “money”-

operated device unless the amount of 

“money” deposited in it is recorded by a 

continuous recording instrument in the device. 

7. You must keep records of all “money” and 

“securities” so we can verify the amount of 

any loss. 

All other policy provisions apply. 

CMP-4709 

©, Copyright, State Farm Mutual Automobile Insurance Company, 2008 

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

ROYAL PALM 000054

Case 9:20-cv-80749-RS Document 12-2 Entered on FLSD Docket 06/11/2020 Page 54 of 107
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Case 9:20-cv-80749-RS Document 12-2 Entered on FLSD Docket 06/11/2020 Page 58 of 107
FE-3650 

Page 1 of 1 

FE-3650 ACTUAL CASH VALUE ENDORSEMENT 

The following is added to any provision which uses the term “actual cash value”: 

Actual cash value means the value of the damaged part of the property at the time of loss, calculated as the estimated cost 

to repair or replace such property, less a deduction to account for pre-loss depreciation. For this calculation, all components of this estimated cost including, but not limited to: 

1. materials, including any tax; 

2. labor, including any tax; and 

3. overhead and profit; 

are subject to depreciation. 

The depreciation deduction may include such considerations as: 

1. age; 

2. condition; 

3. reduction in useful life; 

4. obsolescence; and 

5. any pre-loss damage including wear, tear, or deterioration; 

of the damaged part of the property. 

All other policy provisions apply. 

FE-3650 

©, Copyright, State Farm Mutual Automobile Insurance Company, 2015 

ROYAL PALM 000059

Case 9:20-cv-80749-RS Document 12-2 Entered on FLSD Docket 06/11/2020 Page 59 of 107
FE-8739 

Page 1 of 3 

FE-8739 INLAND MARINE CONDITIONS 

Coverage in the Inland Marine Form is primary to 

any coverage provided in the policy this Form is 

attached to, for the same property. 

The following Conditions also apply: 

1. Agreement. We agree to provide the insurance described in this policy. You agree to pay 

premiums when due and comply with the provisions of this policy. 

2. Definitions. Throughout this policy, the 

words “you” and “your” refer to the Named Insured and any other person or organization 

qualifying as a Named Insured under this policy. The words “we”, “us” and “our” refer to the 

Company providing this insurance. 

3. Valuation. The value of covered property will 

be determined based on the provisions in the 

applicable coverage form attached. 

4. Loss Payment. In the event of loss covered 

by this policy: 

a. We will give notice, within 30 days after 

we receive the sworn statement of loss, of 

our intent to settle the loss according to 

one of the following methods: 

(1) Pay the value of lost or damaged 

property as determined in the Valuation Condition shown in the applicable 

coverage form; 

(2) Pay the cost of replacing or repairing 

the lost or damaged property, plus any 

reduction in value of repaired items; 

(3) Take all or any part of the property at 

an agreed or appraised value; or 

(4) Repair, rebuild or replace the property 

with other property of like kind and 

quality; 

b. We will not pay you more than your financial interest in the covered property; 

c. We may adjust losses with the owners of 

lost or damaged property if other than you. 

If we pay the owners, such payments will 

satisfy your claims against us for the owners’ property. We will not pay the owners 

more than their financial interest in the 

covered property; 

d. We may elect to defend you, at our expense, against suits arising from claims of 

owners of property; 

e. We will pay for covered loss within 30 

days after we receive the sworn statement 

of loss, if: 

(1) You have complied with all of the 

terms of this policy; and 

(2) We have reached agreement with you 

on the amount of loss or an appraisal 

award has been made. 

5. Duties in the Event of Loss. You must see 

that the following are done in the event of loss 

to covered property: 

a. Notify the police if a law may have been 

broken; 

b. Give us prompt notice of the loss. Include 

a description of the lost or damaged property in the notice; 

c. As soon as possible, give us a description 

of how, when and where the loss occurred; 

d. Take all reasonable steps to protect the 

covered property from further damage by 

an insured loss. If feasible, set the damaged property aside and in the best possible order for examination. Also keep a 

record of your emergency and temporary 

repair expenses for consideration in the 

settlement of the claim. This will not increase the limit of insurance; 

e. At our request, give us complete inventories of the damaged and undamaged 

property. Include quantities, costs, values 

and amount of loss claimed; 

f. Permit us to inspect the property and records proving the loss; 

g. If requested, permit us to question you 

under oath at such times as may be reasonably required about any matter relating 

to this insurance or your claim, including 

your books and records. In such event, 

your answers must be signed; 

h. Send us a signed, sworn statement of loss 

containing the information we request to 

settle the claim. You must do this within 60 

days after our request. We will supply you 

with the necessary forms; 

i. Cooperate with us in the investigation or 

settlement of the claim; 

©, Copyright, State Farm Mutual Automobile Insurance Company, 2008 

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

CONTINUED 

ROYAL PALM 000060

Case 9:20-cv-80749-RS Document 12-2 Entered on FLSD Docket 06/11/2020 Page 60 of 107
FE-8739 

Page 2 of 3 

j. Resume all or part of your business activities at the described premises as quickly 

as possible. 

6. Appraisal. If you and we disagree on the 

value of the property or the amount of loss, either may make written demand for an appraisal of the loss. In this event, each party 

will select a competent and impartial appraiser. Each party will notify the other of the selected appraiser’s identity within 20 days after 

receipt of the written demand for an appraisal. 

The two appraisers will select an umpire. If 

the appraisers cannot agree upon an umpire 

within 15 days, either may request that selection be made by a judge of a court having jurisdiction. The appraisers will state separately 

the value of the property and amount of loss. 

If they fail to agree, they will submit their differences to the umpire. A decision agreed to 

by any two will be binding. Each party will: 

a. Pay its chosen appraiser; and 

b. Bear the other expenses of the appraisal 

and umpire equally. 

If we submit to an appraisal, we will still retain 

our right to deny the claim. 

7. Abandonment. There can be no abandonment of any property to us. 

8. Legal Action Against Us. No one may bring 

legal action against us under this insurance 

unless: 

a. There has been full compliance with all of 

the terms of this insurance; and 

b. The action is brought within two years after the date on which the accidental direct 

physical loss occurred. But if the law of 

the state in which this policy is issued allows more than two years to bring legal 

action against us, that longer period of 

time will apply. 

9. Recovered Property. If either you or we recover any property after loss settlement, that 

party must give the other prompt notice. At 

your option, the property will be returned to 

you. You must then return to us the amount 

we paid to you for the property. We will pay 

recovery expenses and the expenses to repair 

the recovered property subject to the limit of 

insurance. 

10. No Benefit to Bailee. No person or organization, other than you, having custody of covered property will benefit from this insurance. 

11. Knowledge or Control. We will not pay for 

loss while the chance of loss is increased by 

any means within your knowledge or control. 

12. Policy Period, Coverage Territory. We cover loss commencing during the policy period 

and within or between the coverage territory. 

The coverage territory is the United States of 

America (including its territories and possessions), Puerto Rico and Canada. 

13. Changes

a. This policy contains all the agreements 

between you and us concerning the insurance afforded. The first Named Insured 

shown in the Declarations is authorized to 

make changes in the terms of this policy 

with our consent. This policy’s terms can 

be amended or waived only by endorsement issued by us and made a part of this 

policy. 

b. We may change the Named Insured’s policy address as shown in the Declarations 

and in our records to the most recent address provided to us by: 

(1) You; or 

(2) The United States Postal Service. 

14. Concealment, Misrepresentation or Fraud. 

This policy is void in any case of fraud by you 

as it relates to the policy at any time. It is also 

void if you or any other insured intentionally 

conceal or misrepresent a material fact concerning: 

a. This policy; 

b. The covered property; 

c. Your interest in the covered property; or 

d. A claim under this policy. 

15. Examination of Your Books and Records. 

We may examine and audit your books and 

records as they relate to this policy at any 

time during the policy period and up to three 

years afterward. 

16. Inspections and Surveys

a. We have the right to: 

(1) Make inspections and surveys at any 

time; 

(2) Give you reports on the conditions we 

find; and 

(3) Recommend changes. 

©, Copyright, State Farm Mutual Automobile Insurance Company, 2008 

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

CONTINUED 

ROYAL PALM 000061

Case 9:20-cv-80749-RS Document 12-2 Entered on FLSD Docket 06/11/2020 Page 61 of 107
FE-8739 

Page 3 of 3 

b. We are not obligated to make any inspections, surveys, reports or recommendations and any such actions we do 

undertake relate only to insurability and 

the premiums to be charged. We do not 

make safety inspections. We do not undertake to perform the duty of any person 

or organization to provide for the health or 

safety of workers or the public. And we do 

not warrant that conditions: 

(1) Are safe and healthful; or 

(2) Comply with laws, regulations, codes 

or standards. 

c. Paragraphs a. and b. of this condition apply not only to us, but also to any rating, 

advisory, rate service or similar organization which makes insurance inspections, 

surveys, reports or recommendations. 

17. Liberalization. If we adopt any revision that 

would broaden the coverage under this policy 

without additional premium within 45 days prior 

to or during the policy period, the broadened 

coverage will immediately apply to this policy. 

18. Other Insurance. If loss covered by this policy is also covered by other insurance written 

in your name, we will not pay for a greater 

proportion of the covered loss than this policy’s Limit of Insurance bears to the total 

amount of insurance covering such loss. 

19. Premiums

a. The first Named Insured shown in the 

Declarations: 

(1) Is responsible for the payment of all 

premiums; and 

(2) Will be the payee for any return premiums we pay. 

b. The premium shown in the Declarations 

was computed based on rates in effect at 

the time the policy was issued. On each 

renewal, continuation or anniversary of the 

effective date of this policy, we will compute the premium in accordance with our 

rates and rules then in effect. 

c. You may continue this policy in force by 

paying a continuation premium for each 

successive one-year period. The premium 

must be: 

(1) Paid to us prior to the anniversary 

date; and 

(2) Determined in accordance with Paragraph b. above. 

Our forms then in effect will apply. If you 

do not pay the continuation premium, this 

policy will expire on the first anniversary 

date that we have not received the premium. 

d. Undeclared exposures, acquisition, or 

change in your business operation may 

occur during the policy period that are not 

shown in the Declarations. If so, we may 

require an additional premium. That premium will be determined in accordance 

with our rates and rules then in effect. 

20. Transfer of Rights of Recovery Against 

Others to Us. If any person or organization 

to or for whom we make payment under this 

policy has rights to recover damages from another, those rights are transferred to us to the 

extent of our payment. That person or organization must do everything necessary to secure our rights and must do nothing after loss 

to impair them. But you may waive your rights 

against another party in writing: 

a. Prior to a loss to your Covered Property. 

b. After a loss to your Covered Property only 

if, at time of loss, that party is one of the 

following: 

(1) Someone insured by this insurance; 

(2) A business firm: 

(a) Owned or controlled by you; or 

(b) That owns or controls you; or 

(3) Your tenant. 

You may also accept the usual bills of lading or shipping receipts limiting the liability 

of carriers. 

This will not restrict your insurance. 

21. Transfer of Your Rights and Duties Under 

This Policy. Your rights and duties under this 

policy may not be transferred without our written consent except in the case of death of an 

individual Named Insured. If you die, your rights 

and duties will be transferred to your legal representative but only while acting within the 

scope of duties as your legal representative. 

Until your legal representative is appointed, 

anyone having proper temporary custody of 

your property will have your rights and duties 

but only with respect to that property. 

22. Conformity to State Law. When a provision 

of this policy is in conflict with the applicable 

law of the state in which this policy is issued, 

the law of the state will apply. 

FE-8739 

©, Copyright, State Farm Mutual Automobile Insurance Company, 2008 

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

ROYAL PALM 000062

Case 9:20-cv-80749-RS Document 12-2 Entered on FLSD Docket 06/11/2020 Page 62 of 107
FE-8791 

Page 1 of 1 

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. 

FE-8791 AMENDMENT OF INLAND MARINE CONDITIONS (Florida) 

1. Paragraph 4.e. under Loss Payment is replaced by the following: 

e. Provided you have complied with all the 

terms of this policy, we will pay for covered 

loss: 

(1) Within 20 days after we receive the 

sworn proof of loss and reach written 

agreement with you; or 

(2) Within 30 days after we receive the 

sworn proof of loss and: 

(a) There is an entry of a final judgment; or 

(b) There is a filing of an appraisal 

award with us. 

2. Paragraph 6. Appraisal is replaced by the 

following: 

6. Appraisal 

If you and we fail to agree on the value of 

the property or the amount of loss, either 

party can demand that the value of the 

property or the amount of loss be set by 

appraisal. A demand for appraisal must 

be in writing. You must comply with the 

Duties In The Event Of Loss condition 

before making a demand. 

Each party will select a qualified, disinterested appraiser and notify the other of the 

appraiser’s identity within 20 days of receipt of the written demand. Each party 

shall be responsible for the compensation 

of their selected appraiser. The two appraisers shall then select a qualified, disinterested umpire. If the two appraisers are 

unable to agree upon an umpire within 15 

days, you or we can ask a judge of a court 

of record in the state where the premises 

described in the Declarations is located to 

select an umpire. Reasonable expenses 

of the appraisal and the reasonable 

compensation of the umpire shall be paid 

equally by you and us. 

The appraisers shall then set the value of 

the property or the amount of loss. The 

value of the property or the amount of loss 

is determined by the actual cash value, 

market value or replacement cost of the 

loss according to the Valuation provision in 

the applicable coverage form attached, including any amendment to that condition. 

If a dispute exists regarding the extent of 

the damages or whether any part of the 

loss is covered by the policy, the appraisers will itemize the damages according to 

the scope of the loss specified by each 

party. If the appraisers submit a written 

report of an agreement to us, the amount 

agreed upon shall be the value of the 

property or the amount of loss. If the appraisers fail to agree within 30 days, unless the time is extended by mutual 

agreement, they shall submit their differences to the umpire. 

Written agreement signed by any two of 

these three shall set the value of the 

property or the amount of loss. 

Appraisal is only available to determine 

the actual cash value, market value or replacement cost of the loss, and has no effect on matters of coverage. Appraisal is 

a non-judicial proceeding and neither party will be awarded attorney fees or be subject to an entry of judgment in a court. We 

do not waive any of our rights by submitting to an appraisal. 

3. Paragraph 8.b. under Legal Action Against 

Us is replaced by the following: 

b. The action is brought within five years after the date on which the accidental direct 

physical loss occurred. 

All other policy provisions apply. 

FE-8791 

©, Copyright, State Farm Mutual Automobile Insurance Company, 2014 

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

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FE-8743.1 

Page 1 of 4 

©, Copyright, State Farm Mutual Automobile Insurance Company, 2013 

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

CONTINUED 

FE-8743.1 INLAND MARINE COMPUTER PROPERTY FORM 

INSURING AGREEMENT 

We will pay for accidental direct physical loss to: 

1. “Computer equipment”, used in your business 

operations, that you own, lease from others, 

rent from others, or that is loaned to you. 

However, we do not insure “computer equipment” used to operate or control vehicles. 

2. Removable data storage media used in your 

business operations to store “electronic data”. 

We do not insure property you lease to others or 

rent to others. 

We do not insure “computer programs” or “electronic data” except as provided in the Computer 

Programs And Electronic Data Extension Of Coverage. 

LIMIT OF INSURANCE 

We will pay for all covered loss up to the limits 

shown on the Schedule Page. 

DEDUCTIBLE

The deductible amount shown on the Schedule 

Page will only apply to the property covered under this form. This amount will be deducted from 

the amount of any loss under this coverage. 

EXCLUSIONS

1. We do not insure under any coverage for any 

loss to any property while in transit as 

checked baggage on a commercial airline; 

2. We do not insure for loss either consisting of, 

or caused by, one or more of the following: 

a. Errors and omissions in programming. 

However, we do insure for any resulting 

loss unless the resulting loss itself is excluded; 

b. Faulty, inadequate, unsound or defective 

design, specifications, workmanship, or 

repair. However, we do insure for any resulting loss unless the resulting loss itself 

is excluded; 

c. Wear, tear, marring, scratching, rust, corrosion or deterioration. However, we do 

insure for any resulting loss unless the resulting loss itself is excluded; 

d. Property that is missing, where the only evidence of the loss is a shortage disclosed 

on taking inventory, or other instances 

where there is no physical evidence to 

show what happened to the property; 

e. Any dishonest or criminal act occurring at 

any time by you, any of your partners, 

employees, directors, or trustees; 

f. Hidden or latent defect or any quality in 

property that causes it to damage or destroy itself. However, we do insure for any 

resulting loss unless the resulting loss itself is excluded; or 

g. Obsolescence; 

3. We do not insure under any coverage for any 

loss which would not have occurred in the absence of one or more of the following excluded 

events. We do not insure for such loss regardless of: (a) the cause of the excluded event; or 

(b) other causes of the loss; or (c) whether 

other causes acted concurrently or in any sequence with the excluded event to produce 

the loss; or (d) whether the event occurs suddenly or gradually, involves isolated or widespread damage, arises from natural or 

external forces, or occurs as a result of any 

combination of these: 

a. Fungi

Growth, proliferation, spread or presence 

of “fungi”, including: 

(1) Any loss of use or delay in repairing or 

replacing covered property, including 

any associated cost or expense, due 

to interference at the location of the 

covered property or at the location of 

the repair or replacement of that property by “fungi”; 

(2) Any remediation of “fungi”, including 

the cost or expense to: 

(a) Remove the “fungi” from covered 

property or to repair, restore or replace that property; 

(b) Take apart and repair any property 

as needed to gain access to the 

“fungi”; 

(c) Contain, treat, detoxify, neutralize 

or dispose of or in any way respond to or assess the effects of 

the “fungi”; or 

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CONTINUED 

(d) Remove any property to protect it 

from the presence of or exposure 

to “fungi”; and 

(3) The cost of any testing or monitoring 

of air or property to confirm the type, 

absence, presence or level of “fungi”, 

whether performed prior to, during, or 

after removal, repair, restoration or replacement of covered property. 

b. Governmental Action

Seizure or destruction of property by order 

of governmental authority. 

But we will pay for acts of destruction ordered by governmental authority and taken 

at the time of a fire to prevent its spread. 

c. Nuclear Hazard

Nuclear reaction or radiation, or radioactive contamination. Loss caused by the 

nuclear hazard will not be considered loss 

caused by fire, explosion or smoke. 

But if nuclear reaction or radiation, or radioactive contamination results in fire, we 

will pay for the loss caused by that fire. 

d. War And Military Action

(1) War, including undeclared or civil war; 

(2) Warlike action by a military force, including action in hindering or defending against an actual or expected 

attack by any government, sovereign 

or other authority using military personnel or other agents; or 

(3) Insurrection, rebellion, revolution, 

usurped power or action taken by governmental authority in hindering or defending against any of these. 

EXTENSIONS OF COVERAGE 

1. Computer Programs And Electronic Data 

a. We will pay for accidental direct loss to: 

(1) The following types of “computer programs” and “electronic data” that you 

own, license from others, lease from 

others, or rent from others: 

(a) “Computer programs” used in your 

business operations; or 

(b) The “electronic data” that exists in 

“computer” memory or on “computer” storage media, used in your 

business operations. 

(2) That portion of your customers’ “electronic data” that is supplied to you for 

processing or other use in your business operations. Coverage for customers’ “electronic data” is limited to 

the specific data file(s) containing the 

information you are processing or using in your business operations. 

We do not cover any property you lease to 

others, rent to others or license to others. 

We do not cover “computer equipment” or 

removable data storage media under this 

Extension Of Coverage. This coverage extension is included in the Limit Of Insurance shown on the Schedule Page. 

Loss does not include any consequential 

loss except as may be provided in the optional Loss Of Income And Extra Expense 

coverage. 

b. All items under the EXCLUSIONS section 

of this form apply to this Extension Of 

Coverage except: 

(1) Item a. in Paragraph 2. does not apply 

to: 

(a) “Computer programs” other than 

the program in which the error or 

omission in programming occurs; 

and 

(b) “Electronic data”; 

covered under this extension; 

(2) Item b. in Paragraph 2. does not apply 

to “electronic data” covered under this 

extension; and 

(3) Items c. and d. in Paragraph 2. do not 

apply to “computer programs” and 

“electronic data” covered under this 

extension. 

c. We do not provide coverage for loss to, or 

loss of value resulting from infringement 

of, your intellectual property rights. 

2. Fire Protection Devices

We will cover your expense, for up to 

$25,000, to recharge or refill any fire protection devices which have been discharged to 

protect the covered property. 

The amount we pay under this Extension Of 

Coverage is an additional amount of insurance and is not subject to a deductible. 

3. Debris Removal 

We will cover your expense to remove the debris of covered property, caused by Covered 

Cause Of Loss. 

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©, Copyright, State Farm Mutual Automobile Insurance Company, 2013 

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

CONTINUED 

The amount we pay under this Extension Of 

Coverage will not increase the applicable Limit Of Insurance. 

SPECIAL CONDITIONS 

1. Valuation

We agree all losses to: 

a. “Computer equipment” will be determined 

based on the cost to repair or replace with 

that of similar performance, capacity or 

function. 

b. Removable data storage media will be determined based on the cost to repair or 

replace that media with blank media of 

similar performance, capacity or function. 

c. “Computer programs”: 

(1) That are commercial off-the-shelf will 

be determined based on the cost to 

repair or replace with that of similar 

performance, capacity or function; or 

(2) That are not commercial off-the-shelf will 

be determined based on the cost of reproducing the programs if they are reproduced. If not reproduced, loss will be 

determined based on the cost of blank, 

readily available, removable data storage media, such as blank discs, with 

suitable capacity to store the programs. 

d. “Electronic data” will be determined based 

on the cost of reproducing the data, if it is 

reproduced. If not reproduced, loss will be 

determined based on the cost of blank, 

readily available, removable data storage 

media, such as blank discs, with suitable 

capacity to store the data. 

2. One Loss 

If an initial loss causes other losses, all will be 

considered one loss. All losses that are the 

result of the same event will be considered 

one loss. 

OPTIONAL COVERAGE – LOSS OF INCOME 

AND EXTRA EXPENSE 

1. If a limit is shown on the Inland Marine 

Schedule Page for Loss Of Income And Extra 

Expense, coverage under this form is provided, 

subject to that limit, for the following: 

a. The actual “Loss Of Income” you sustain 

due to the necessary “suspension” of your 

operations during the “period of restoration”. 

The “suspension” must be caused by damage or destruction to property covered 

under this form, by a Covered Cause Of 

Loss; and 

b. Any necessary “extra expense” you incur 

during the “period of restoration” that you 

would not have incurred if there had been 

no damage or destruction to property covered under this form, by a Covered Cause 

Of Loss. 

We will only pay for “Loss Of Income” or “extra expense” that you sustain during the “period 

of restoration” that occurs within 12 consecutive months after the date of loss. We will only 

pay for “ordinary payroll expenses” for 90 

days following the date of loss. 

2. We will not pay for: 

a. Any “extra expense” or increase of “Loss 

Of Income” caused by suspension, lapse 

or cancellation of any license, lease or 

contract. But if the suspension, lapse or 

cancellation is directly caused by the 

“suspension” of your operations, we will 

cover such loss that affects your “Loss Of 

Income” during the “period of restoration”; 

b. Any “extra expense” caused by suspension, 

lapse or cancellation of any license, lease or 

contract beyond the “period of restoration”; 

c. Any other consequential loss; or 

d. Loss caused by seizure or destruction of 

property by order of governmental authority. 

But we will pay for acts of destruction ordered by governmental authority and taken 

at the time of a fire to prevent its spread. 

DEFINITIONS

1. “Computer” means: 

a. Programmable electronic equipment that 

is used to store, retrieve and process data; 

and 

b. Associated peripheral equipment that provides communication, including input and 

output functions such as printing and auxiliary functions such as data transmission. 

“Computer” does not include those used to 

operate production type machinery or equipment. 

2. “Computer equipment” means “computers”, 

“computer” cables and wiring not attached to 

or forming a part of a building, and equipment 

manuals. “Computer equipment” does not 

mean other types of devices with internal 

computing capability, such as intelligent devices that contain an embedded chip or some 

other form of logic circuitry, or the computing 

components in those devices. 

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3. “Computer programs” means a set of related 

electronic instructions which direct the operations and functions of a “computer” or device 

connected to it, which enable the “computer” 

or device to receive, process, store, retrieve 

or send data. 

4. “Electronic data” means information, facts or 

“computer programs” stored as or on, created 

or used on, or transmitted to or from “computer” 

software (including systems and applications 

software), on hard or floppy disks, CD-ROMs, 

tapes, drives, cells, data processing devices 

or any other repositories of “computer” software which are used with electronically controlled equipment. 

5. “Extra expense” means expense incurred: 

a. To avoid or minimize the “suspension” of 

business and to continue operations. 

b. To minimize the “suspension” of business 

if you cannot continue operations. 

c. To repair or replace any property to the 

extent it reduces the amount of loss that 

would otherwise have been payable under 

this coverage or “Loss Of Income” coverage. 

6. “Fungi” means any type or form of fungus, 

including mold or mildew, and any mycotoxins, spores, scents or byproducts produced or 

released by fungus. 

7. “Loss Of Income” means the sum of the 

amounts as described in a. and b. below: 

a. Net income (net profit or loss before income taxes) that would have been earned 

or incurred if no accidental direct loss had 

occurred, including: 

(1) “Rental value”; 

(2) “Maintenance fees”, if you are a condominium association or other similar 

community association; 

(3) Total receipts and contributions (less 

operating expenses) normally received 

during the period of disruption of operations; and 

(4) Tuition and fees from students, including fees from room, board, laboratories 

and other similar sources. 

b. Continuing normal operating expenses incurred, including “ordinary payroll expenses”. 

Net income does not include any net income 

that would likely have been earned as a result 

of an increase in the volume of business due 

to favorable business conditions caused by 

the impact of the Covered Cause Of Loss on 

customers or on other businesses. 

8. “Maintenance fees” means the regular payment made to you by unit-owners and used to 

service the common property. 

9. “Ordinary payroll expenses”: 

a. Mean payroll expenses for all your employees except: 

(1) Officers; 

(2) Executives; 

(3) Department Managers; and 

(4) Employees under contract; 

b. Include: 

(1) Payroll; 

(2) Employee benefits, if directly related to 

payroll; 

(3) FICA payments you pay; 

(4) Union dues you pay; and 

(5) Workers’ compensation premiums. 

10. “Period of restoration” means the period of 

time that: 

a. Begins immediately after the time of loss 

to property covered by this form; and 

b. Ends on the date when the property covered by this form should be repaired, rebuilt, restored or replaced with reasonable 

speed and similar quality. 

The expiration date of this policy will not cut 

short the “period of restoration”. 

11. “Rental value” means: 

a. The total anticipated rental income from 

tenant occupancy of the premises described in the Declarations as furnished 

and equipped by you; 

b. The amount of all charges which are the 

legal obligation of the tenant(s) and which 

would otherwise be your obligations; and 

c. The fair rental value of any portion of the 

described premises which is occupied by 

you. 

12. “Suspension” means the partial slowdown or 

complete cessation of your business activities. 

FE-8743.1 

©, Copyright, State Farm Mutual Automobile Insurance Company, 2013 

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

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State Farm®

Businessowners

Coverage Form

CMP-4100 

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CMP-4100 1

©, Copyright, State Farm Mutual Automobile Insurance Company, 2008 

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

BUSINESSOWNERS COVERAGE FORM 

TABLE OF CONTENTS 

Page 

AGREEMENT 3 

SECTION I — PROPERTY 3 

Coverage A – Buildings 3 

Coverage B – Business Personal Property 3 

Property Not Covered 3 

Property Subject To Limitations 4 

SECTION I — COVERED CAUSES OF LOSS 4 

SECTION I — EXCLUSIONS 5 

Ordinance Or Law 5 

Earth Movement 5 

Volcanic Eruption 5 

Governmental Action 5 

Nuclear Hazard 5 

Power Failure 5 

War And Military Action 5 

Water 5 

Certain Computer-Related Losses 6 

Fungi, Virus Or Bacteria 6 

Electrical Apparatus 6 

Consequential Losses 6 

Smoke, Vapor, Gas 6 

Steam Apparatus 6 

Frozen Plumbing 7 

Dishonesty 7 

False Pretense 7 

Exposed Property 7 

Collapse 7 

Pollution 7 

Neglect 7 

Other Types Of Losses 7 

Errors Or Omissions 7 

Installation, Testing, Repair 7 

Electrical Disturbance 8 

Continuous Or Repeated Seepage, 

Discharge Or Leakage Of Water 8 

Page 

Weather Conditions 8 

Acts Or Decisions 8 

Work 8 

Loss To Products 8 

SECTION I — EXTENSIONS OF COVERAGE 8 

Debris Removal 8 

Preservation Of Property 9 

Fire Department Service Charge 9 

Collapse 9 

Water Damage, Other Liquids, Powder Or 

Molten Material Damage 10 

Pollutant Clean Up And Removal 10 

Money Orders And Counterfeit Money 10 

Forgery Or Alteration 10 

Increased Cost Of Construction And 

Demolition Cost 10 

Glass Expenses 11 

Fire Extinguisher Systems Recharge Expense 11 

Newly Acquired Or Constructed Property 12 

Personal Property Off Premises 12 

Outdoor Property 12 

Personal Effects 12 

Valuable Papers And Records 13 

Accounts Receivable 13 

Signs 13

Arson Reward 13 

Damage To Non-Owned Buildings 

From Theft, Burglary Or Robbery 14 

Property Of Others 14 

Equipment Breakdown 14 

Ordinance Or Law – Equipment Coverage 16 

SECTION I — LIMITS OF INSURANCE 17

SECTION I — DEDUCTIBLES 17

SECTION I — CONDITIONS 17

Abandonment 17

Appraisal 17

Duties In The Event Of Loss 17 

Legal Action Against Us 18 

Loss Payment 18 

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Page 

Recovered Property 20 

Vacancy 20 

Control Of Property 20 

Mortgageholders 20 

No Benefit To Bailee 21 

Policy Period, Coverage Territory 21 

SECTION I — DEFINITIONS 21 

SECTION II — LIABILITY 23 

Coverage L – Business Liability 23 

Section II – Supplementary Payments 23 

Section II – Exclusions 24 

Expected Or Intended Injury 24 

Contractual Liability 24 

Liquor Liability 25 

Workers’ Compensation And Similar Laws 25 

Employer’s Liability 25 

Employment-Related Practices 25 

Pollution 25 

Aircraft, Auto Or Watercraft 26 

Mobile Equipment 27 

War 27 

Professional Services Or Treatment 27 

Damage To Property 27 

Damage To Your Product 27 

Damage To Your Work 28 

Damage To Impaired Property Or 

Property Not Physically Injured 28 

Recall Of Products, Work Or 

Impaired Property 28 

Personal And Advertising Injury 28 

Electronic Data 28 

Recording And Distribution Of Material 

In Violation Of Law 29 

Fungi 29 

SECTION II — DAMAGE TO PREMISES 

RENTED TO YOU 29 

Page 

SECTION II — MEDICAL EXPENSES 29 

Coverage M – Medical Expenses 29 

Coverage M – Medical Expenses Exclusion 30 

SECTION II — NUCLEAR ENERGY 

LIABILITY EXCLUSION 30 

SECTION II — WHO IS AN INSURED 31 

SECTION II — LIMITS OF INSURANCE 32 

SECTION II — DEDUCTIBLES 33 

SECTION II — GENERAL CONDITIONS 33 

Bankruptcy 33 

Financial Responsibility Laws 33 

Duties In The Event Of Occurrence, 

Offense, Claim Or Suit 33 

Legal Action Against Us 34 

Separation Of Insureds 34 

SECTION II — DEFINITIONS 34 

SECTION I AND SECTION II — COMMON 

POLICY CONDITIONS 37 

Changes 37 

Concealment, Misrepresentation Or Fraud 37 

Examination Of Your Books And Records 37 

Inspections And Surveys 37 

Insurance Under Two Or More Coverages 38 

Liberalization 38 

Other Insurance 38 

Premiums 38 

Premium Audit 39 

Transfer Of Rights Of Recovery Against 

Others To Us 39 

Transfer Of Your Rights And Duties Under 

This Policy 39 

Conformity To State Law 39 

Severability 39 

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CMP-4100 3 

©, Copyright, State Farm Mutual Automobile Insurance Company, 2008 

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

AGREEMENT: We agree to provide the insurance described in this policy. You agree to pay premiums when due and 

comply with the provisions of this policy. 

Various provisions in this policy restrict coverage. Read the entire policy carefully to determine rights, duties and what is 

and is not covered. 

Throughout this policy, the words “you” and “your” refer to the Named Insured shown in the Declarations and any other 

person or organization qualifying as a Named Insured under this policy. The words “we”, “us” and “our” refer to the Company providing this insurance, as shown in the Declarations. Declarations include the policy Declarations or Renewal 

Declarations and any amendments thereto. 

In SECTION II — LIABILITY, the word “insured” means any person or organization qualifying as such under SECTION II 

— WHO IS AN INSURED. 

Other words and phrases that appear in quotation marks have special meaning. Refer to SECTION I — DEFINITIONS

and SECTION II — DEFINITIONS. Definitions apply to the singular, plural, and possessive forms of these words and 

phrases. 

SECTION I — PROPERTY 

When a Limit Of Insurance is shown in the Declarations for 

that type of property as described under Coverage A – 

Buildings, Coverage B – Business Personal Property, 

or both, we will pay for accidental direct physical loss to 

that Covered Property at the premises described in the 

Declarations caused by any loss as described under SECTION I — COVERED CAUSES OF LOSS. 

Covered Property includes property as described under 

Coverage A – Buildings, property as described under 

Coverage B – Business Personal Property, or both. 

Regardless of whether coverage is shown in the Declarations for Coverage A – Buildings, Coverage B –

Business Personal Property, or both, there is no coverage for property described under Property Not Covered. 

Coverage A – Buildings 

Buildings, meaning the buildings and structures at the described premises, including: 

1. Completed additions; 

2. Fixtures, including outdoor fixtures; 

3. Permanently installed: 

a. Machinery; and 

b. Equipment; 

4. Your personal property in apartments, rooms or common areas furnished by you as landlord; 

5. Personal property owned by you that is used to maintain or service the buildings or structures or the described premises, including: 

a. Fire extinguishing equipment; 

b. Outdoor furniture; 

c. Floor coverings; and 

d. Appliances used for refrigerating, ventilating, cooking, dishwashing or laundering; and 

6. If not covered by other insurance: 

a. Additions under construction, alterations and repairs to the buildings or structures; and 

b. Materials, equipment, supplies and temporary 

structures, on or within 100 feet of the described 

premises, used for making additions, alterations or 

repairs to the buildings or structures. 

Coverage B – Business Personal Property 

Business Personal Property located in or on the buildings 

at the described premises or in the open (or in a vehicle) 

within 100 feet of the described premises, including: 

1. Property, used in your business, that you own, lease 

from others or rent from others, or that is loaned to 

you; 

2. Property of others that is in your care, custody or control, unless provided for in item 1. immediately above; 

3. Tenant’s improvements and betterments. Improvements and betterments are fixtures, alterations, installations or additions: 

a. Made a part of the building or structure you occupy 

but do not own; and 

b. You acquired or made at your expense but cannot 

legally remove; 

4. Building glass, if you are a tenant and no Limit Of Insurance is shown in the Declarations for Coverage A – 

Buildings. The glass must be owned by you or in your 

care, custody or control; and 

5. Property as described in Coverage A – Buildings, if 

you are a tenant and no Limit Of Insurance is shown in 

the Declarations for Coverage A – Buildings. The 

property must: 

a. Pertain to the described premises occupied but not 

owned by you; and 

b. Be your insurance responsibility according to the 

terms of your lease or rental agreement. 

Property Not Covered 

Covered Property does not include: 

1. Aircraft, automobiles, motor trucks or other vehicles 

subject to motor vehicle registration; 

2. “Money” or “securities”; 

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©, Copyright, State Farm Mutual Automobile Insurance Company, 2008 

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

3. Contraband or property in the course of illegal transportation, commerce or trade; 

4. Land (including land necessary to support any covered 

building or structure). 

With respect to land the following are also not covered: 

a. Any cost required to replace, rebuild, excavate, 

grade, backfill, fill, stabilize or otherwise restore the 

land; or 

b. The cost of repair techniques designed to compensate for or prevent land instability to any building or structure; 

5. Outdoor radio or television antennas (including satellite 

dishes) and their lead-in wiring, masts or towers, outdoor signs (whether or not attached to buildings), and 

outdoor trees, shrubs, plants or lawns (other than 

trees, shrubs, plants or lawns while held as “stock”), all 

except as provided in the: 

a. Outdoor Property Extensions Of Coverage; or 

b. Signs Extensions Of Coverage; 

6. Watercraft (including motors, equipment and accessories) while afloat; 

7. Accounts, bills, food stamps, other evidences of debt, 

accounts receivable or “valuable papers and records”; 

except as otherwise provided in this coverage form; 

8. “Computer(s)” which are permanently installed or designed to be permanently installed in any aircraft, automobile, watercraft, motor truck or other vehicle 

subject to motor vehicle registration. This paragraph 

does not apply to “computer(s)” while held as “stock”; 

9. “Electronic Data”. This paragraph does not apply to 

your “stock” of prepackaged software; or 

10. Natural water or growing crops. 

Property Subject To Limitations 

1. We will not pay for loss to: 

a. Steam boilers, steam pipes, steam engines or 

steam turbines caused by any condition or event inside such equipment. But we will pay for loss to 

such equipment caused by an explosion of gases or 

fuel within the furnace of any fired vessel or within 

the flues or passages through which the gases of 

combustion pass. 

b. Hot water boilers or other water heating equipment, 

air conditioning units or refrigerating units caused by 

any condition or event inside such boilers or equipment, other than an explosion. 

c. Property that is missing, where the only evidence of 

the loss is a shortage disclosed on taking inventory, 

or other instances where there is no physical evidence to show what happened to the property. 

d. Property that has been transferred to a person or 

to a place outside the described premises on the 

basis of unauthorized instructions. 

e. The interior of any building or structure, or the 

property inside any building or structure, caused by 

rain, snow, sleet, ice, sand or dust, whether driven 

by wind or not, unless: 

(1) The building or structure first sustains damage 

by a Covered Cause Of Loss to its roof, outside 

walls, or outside building glass through which 

the rain, snow, sleet, ice, sand or dust enters; or 

(2) The loss is caused by thawing of snow, sleet 

or ice on the building or structure. 

f. Bridges, roadways, driveways, walks, patios or 

other paved surfaces, outdoor swimming pools and 

related equipment, retaining walls, bulkheads, pilings, piers, wharves, docks and underground 

pipes, flues or drains caused by: 

(1) Freezing or thawing; 

(2) Impact of watercraft; or 

(3) The pressure or weight of ice, water, or snow 

whether driven by wind or not. 

2. We will not pay for loss to fragile articles such as 

glassware, statuary, marble, chinaware and porcelain, 

if broken, unless caused by any of the “specified causes of loss” or by building glass breakage. This restriction does not apply to: 

a. Glass that is part of the exterior or interior of a 

building or structure; 

b. Containers of property held for sale; or 

c. Photographic or scientific instrument lenses. 

3. For loss by theft, the following types of property are 

covered only up to the limits shown: 

a. $2,500 for furs, fur garments and garments 

trimmed with fur. 

b. $2,500 for jewelry, watches, watch movements, 

jewels, pearls, precious and semi-precious stones, 

bullion, gold, silver, platinum and other precious alloys or metals. This limit does not apply to jewelry 

and watches worth $100 or less per item. 

c. $2,500 for patterns, dies, molds and forms. 

4. Animals are covered only if: 

a. Owned by others and in your care, custody or control; or 

b. Held as “stock” and only while inside of buildings. 

We will pay only if the animals are killed, stolen, or their 

destruction is made necessary by any of the “specified 

causes of loss” or by building glass breakage. 

SECTION I — COVERED CAUSES OF LOSS 

We insure for accidental direct physical loss to Covered 

Property unless the loss is: 

1. Excluded in SECTION I — EXCLUSIONS; or 

2. Limited in the Property Subject To Limitations provision. 

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SECTION I — EXCLUSIONS 

1. We do not insure under any coverage for any loss 

which would not have occurred in the absence of one 

or more of the following excluded events. We do not 

insure for such loss regardless of: (a) the cause of the 

excluded event; or (b) other causes of the loss; or (c) 

whether other causes acted concurrently or in any sequence with the excluded event to produce the loss; or 

(d) whether the event occurs suddenly or gradually, involves isolated or widespread damage, arises from 

natural or external forces, or occurs as a result of any 

combination of these: 

a. Ordinance Or Law

(1) The enforcement of any ordinance or law: 

(a) Regulating the construction, use or repair 

of any property; or 

(b) Requiring the tearing down of any property, 

including the cost of removing its debris. 

(2) This exclusion, Ordinance Or Law, applies 

whether the loss results from: 

(a) An ordinance or law that is enforced even 

if the property has not been damaged; or 

(b) The increased costs incurred to comply with 

an ordinance or law in the course of construction, repair, renovation, remodeling or demolition of property or removal of its debris, 

following an accidental direct physical loss to 

that property. 

b. Earth Movement

(1) Earthquake, whether combined with water or 

not, including any earth sinking, rising or shifting related to such event; 

(2) Landslide, whether combined with water or 

not, including any earth sinking, rising or shifting related to such event; 

(3) Mine subsidence, whether combined with water 

or not, meaning subsidence of a man-made 

mine, whether or not mining activity has ceased; 

or 

(4) Earth sinking (other than “sinkhole collapse”), rising or shifting, whether combined with water or 

not, including soil conditions which cause settling, cracking or other disarrangement of foundations or other parts of realty. Soil conditions 

include contraction, expansion, freezing, thawing, 

erosion, the action of water or any other natural 

forces; or improper compaction, site selection, 

excavation, retention, stabilization or any other 

external forces. 

But if Earth Movement, as described in Paragraphs 

(1) through (4) above, results in fire or explosion, 

we will pay for the loss caused by that fire or explosion. 

c. Volcanic Eruption

Volcanic eruption, explosion or effusion. But if volcanic eruption, explosion or effusion results in fire, 

building glass breakage or “volcanic action”, we will 

pay for the loss caused by that fire, building glass 

breakage or “volcanic action”. 

All volcanic eruptions that occur within any 168-hour 

period will constitute a single occurrence. 

d. Governmental Action

Seizure or destruction of property by order of governmental authority. 

But we will pay for acts of destruction ordered by 

governmental authority and taken at the time of a 

fire to prevent its spread, if the fire would be covered under this coverage form. 

e. Nuclear Hazard

Nuclear reaction or radiation, or radioactive contamination. 

Loss caused by the nuclear hazard will not be considered loss caused by fire, explosion or smoke. 

But if nuclear reaction or radiation, or radioactive 

contamination results in fire, we will pay for the 

loss caused by that fire. 

f. Power Failure

The failure of power or other utility service supplied 

to the described premises, if the failure occurs away 

from the described premises. Failure includes lack 

of sufficient capacity and reduction in supply. 

But if the failure of power or other utility service results in a Covered Cause Of Loss, we will pay for 

the loss caused by that Covered Cause Of Loss. 

g. War And Military Action

(1) War, including undeclared or civil war; 

(2) Warlike action by a military force, including action in hindering or defending against an actual 

or expected attack, by any government, sovereign or other authority using military personnel or other agents; or 

(3) Insurrection, rebellion, revolution, usurped 

power, or action taken by governmental authority in hindering or defending against any of 

these. 

h. Water

(1) Flood, surface water, waves (including tidal 

waves, tsunami, and seiche), tides, tidal water, 

overflow of any body of water, or spray or 

surge from any of these, all whether driven by 

wind or not; 

(2) Mudslide or mudflow; 

(3) Water or sewage that backs up or overflows 

from a sewer, drain or sump; 

(4) Water or sewage under the ground surface 

pressing on, or flowing or seeping through: 

(a) Foundations, walls, floors or paved surfaces; 

(b) Basements, whether paved or not; or 

(c) Doors, windows or other openings; or 

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(5) Material carried or otherwise moved by any of 

the Water, as described in Paragraphs (1)

through (4) above. 

But if Water, as described in Paragraphs (1)

through (5), results in accidental direct physical 

loss by fire, explosion or sprinkler leakage, we will 

pay for the loss caused by that fire, explosion or 

sprinkler leakage. 

i. Certain Computer-Related Losses

(1) The failure, malfunction or inadequacy of: 

(a) Any of the following, whether belonging to 

any insured or to others: 

i. “Computer” hardware, including microprocessors or other electronic data processing equipment as may be described 

elsewhere in this coverage form; 

ii. “Computer” application software or 

other “electronic data” as may be described elsewhere in this coverage 

form; 

iii. “Computer” operating systems and related software; 

iv. “Computer” networks; 

v. Microprocessors (“computer” chips) not 

part of any “computer” system; or 

vi. Any other computerized or electronic 

equipment or components; or 

(b) Any other products, and any services, data 

or functions that directly or indirectly use or 

rely upon, in any manner, any of the items 

listed in Paragraph (a) above; 

due to the inability to correctly recognize, distinguish, interpret or accept one or more dates 

or times. 

(2) Any advice, consultation, design, evaluation, 

inspection, installation, maintenance, repair, 

replacement or supervision provided or done 

by you or for you to determine, rectify or test 

for, any potential or actual problems described 

in Paragraph (1) above. 

But, if excluded loss, as described in Paragraph (1)

above results in any of the “specified causes of loss” 

under SECTION I — PROPERTY, we will pay only for 

the loss caused by such “specified causes of loss”. 

We will not pay for repair, replacement or modification of any items in Paragraph (1)(a) or 

(1)(b) to correct any deficiencies or change any 

features. 

j. Fungi, Virus Or Bacteria 

(1) Growth, proliferation, spread or presence of 

“fungi” or wet or dry rot; or 

(2) Virus, bacteria or other microorganism that induces or is capable of inducing physical distress, illness or disease; and 

(3) We will also not pay for:

(a) Any loss of use or delay in rebuilding, repairing or replacing covered property, including 

any associated cost or expense, due to interference at the described premises or location 

of the rebuilding, repair or replacement of 

that property, by “fungi”, wet or dry rot, virus, 

bacteria or other microorganism; 

(b) Any remediation of “fungi”, wet or dry rot, 

virus, bacteria or other microorganism, including the cost or expense to: 

i. Remove the “fungi”, wet or dry rot, virus, bacteria or other microorganism 

from Covered Property or to repair, restore or replace that property; 

ii. Tear out and replace any part of the 

building or other property as needed to 

gain access to the “fungi”, wet or dry rot, 

virus, bacteria or other microorganism; or 

iii. Contain, treat, detoxify, neutralize or 

dispose of or in any way respond to or 

assess the effects of the “fungi”, wet or 

dry rot, virus, bacteria or other microorganism; or 

(c) The cost of any testing or monitoring of air 

or property to confirm the type, absence, 

presence or level of “fungi”, wet or dry rot, 

virus, bacteria or other microorganism, 

whether performed prior to, during or after 

removal, repair, restoration or replacement 

of Covered Property. 

This exclusion does not apply if “fungi”, wet or dry 

rot, virus, bacteria or other microorganism results 

from an accidental direct physical loss caused by 

fire or lightning. 

2. We do not insure under any coverage for loss whether 

consisting of, or directly and immediately caused by, 

one or more of the following: 

a. Electrical Apparatus

Artificially generated electrical current, including 

electric arcing, that disturbs electrical devices, appliances or wires. 

But if artificially generated electrical current results 

in accidental direct physical loss by fire, we will pay 

for the loss caused by fire. 

b. Consequential Losses

Delay, loss of use or loss of market. 

c. Smoke, Vapor, Gas

Smoke, vapor or gas from agricultural smudging or 

industrial operations. 

d. Steam Apparatus

Explosion of steam boilers, steam pipes, steam 

engines or steam turbines owned or leased by you, 

or operated under your control. 

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But if explosion of steam boilers, steam pipes, 

steam engines or steam turbines results in accidental direct physical loss by fire or combustion 

explosion, we will pay for the loss caused by that 

fire or combustion explosion. 

We will also pay for loss caused by the explosion 

of gases or fuel within the furnace of any fired vessel or within the flues or passages through which 

the gases of combustion pass. 

e. Frozen Plumbing

Water, other liquids, powder or molten material that 

leaks or flows from plumbing, heating, air conditioning or other equipment (except fire protective 

systems) caused by freezing, unless: 

(1) You do your best to maintain heat in the building or structure; or 

(2) You drain the equipment and shut off the water 

supply if the heat is not maintained. 

f. Dishonesty

Dishonest or criminal acts by you, anyone else with 

an interest in the property, or any of your or their 

partners, “members”, officers, “managers“, employees, directors, trustees, authorized representatives or anyone to whom you entrust the property 

for any purpose: 

(1) Acting alone or in collusion with others; or 

(2) Whether or not occurring during the hours of 

employment. 

This exclusion does not apply to acts of destruction 

by your employees; but theft by employees is not 

covered. 

With respect to accounts receivable and “valuable 

papers and records”, this exclusion does not apply 

to carriers for hire. 

g. False Pretense 

Voluntary parting with any property by you or anyone else to whom you have entrusted the property 

if induced to do so by any fraudulent scheme, trick, 

device or false pretense. 

h. Exposed Property

Rain, snow, ice or sleet to personal property in the 

open. 

i. Collapse

Collapse, except as provided under SECTION I — 

EXTENSIONS OF COVERAGE. But if collapse results in a Covered Cause Of Loss, we will pay for 

the loss caused by that Covered Cause Of Loss. 

j. Pollution

We will not pay for loss caused by the presence, 

discharge, dispersal, seepage, migration, release or 

escape of “pollutants” unless the presence, discharge, dispersal, seepage, migration, release or 

escape is itself caused by any of the “specified 

causes of loss”. But if the discharge, dispersal, seepage, migration, release or escape of “pollutants” results in an accidental direct physical loss by any of 

the “specified causes of loss”, we will pay for the 

loss caused by that “specified cause of loss”. 

k. Neglect

Neglect of an insured to use all reasonable means 

to save and preserve property from further damage 

at and after the time of loss. 

l. Other Types Of Loss

(1) Wear and tear; 

(2) Rust or other corrosion, decay, deterioration, 

hidden or latent defect or any quality in property 

that causes it to damage or destroy itself; 

(3) Smog; 

(4) Settling, cracking, shrinking or expansion; 

(5) Nesting or infestation, or discharge or release 

of waste products or secretions, by insects, 

birds, rodents or other animals; 

(6) Mechanical breakdown, including rupture or 

bursting caused by centrifugal force; or 

(7) The following causes of loss to personal property: 

(a) Dampness or dryness of atmosphere; 

(b) Changes in or extremes of temperature; or 

(c) Marring or scratching. 

But if an excluded cause of loss that is listed in Paragraphs (1) through (7) above results in an accidental 

direct physical loss by any of the “specified causes of 

loss” or by building glass breakage, we will pay for 

the loss caused by that “specified cause of loss” or by 

building glass breakage. 

m. Errors Or Omissions

Errors or omissions in: 

(1) Programming, processing or storing data, as 

described under “electronic data” or in any 

“computer” operations; or 

(2) Processing or copying “valuable papers and 

records”. 

But if accidental direct physical loss results from 

fire or explosion, we will pay for that resulting loss 

unless the resulting loss is itself one of the losses 

not insured in SECTION I of this coverage form. 

n. Installation, Testing, Repair

Errors or deficiency in design, installation, testing, 

maintenance, modification or repair of your “computer” system including “electronic data”. 

But if accidental direct physical loss results from 

fire or explosion, we will pay for that resulting loss 

unless the resulting loss is itself one of the losses 

not insured in SECTION I of this coverage form. 

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o. Electrical Disturbance

Electrical or magnetic injury, disturbance or erasure 

of “electronic data”. However, we will pay for accidental direct loss caused by lightning. 

p. Continuous Or Repeated Seepage, Discharge 

Or Leakage Of Water

Continuous or repeated seepage, discharge or 

leakage of water, or the presence or condensation 

of humidity, moisture or vapor, that occurs over a 

period of 14 days or more. 

3. We do not insure under any coverage for any loss consisting of one or more of the items below. Further, we do 

not insure for loss described in Paragraphs 1. and 2.

immediately above regardless of whether one or more of 

the following: (a) directly or indirectly cause, contribute to 

or aggravate the loss; or (b) occur before, at the same 

time, or after the loss or any other cause of the loss: 

a. Weather Conditions

Weather conditions. But this exclusion only applies 

if weather conditions contribute in any way with a 

cause or event excluded in Paragraph 1. and 2.

above to produce the loss. 

b. Acts Or Decisions

Conduct, acts or decisions, including the failure to 

act or decide, of any person, group, organization or 

governmental body whether intentional, wrongful, 

negligent or without fault. 

c. Work

Faulty, inadequate or defective: 

(1) Planning, zoning, development, surveying, siting; 

(2) Design, specifications, workmanship, repair, 

construction, renovation, remodeling, grading, 

compaction; 

(3) Materials used in repair, construction, renovation or remodeling; or 

(4) Maintenance; 

of part or all of any property (including land, structures or improvement of any kind) on or off the described premises. 

But if accidental direct physical loss results from items 

3.a., 3.b., or 3.c., we will pay for that resulting loss unless the resulting loss is itself one of the losses not insured in SECTION I of this coverage form. 

4. Additional Exclusion 

The following applies only to the property specified in 

this Additional Exclusion. 

Loss To Products 

We will not pay for loss to any merchandise, goods or 

other product consisting of, caused by or resulting from 

error or omission by any person or entity (including 

those having possession under an arrangement where 

work or a portion of the work is outsourced) in any 

stage of the development, production or use of the 

product, including planning, testing, processing, packaging, installation, maintenance or repair. This exclusion 

applies to any effect that compromises the form, substance or quality of the product. But if such error or 

omission results in a Covered Cause Of Loss, we will 

pay for the loss caused by that Covered Cause Of Loss. 

SECTION I — EXTENSIONS OF COVERAGE 

Subject to the terms and conditions applicable to SECTION I

of this coverage form, the following Extensions Of Coverage apply separately to each premises described in the 

Declarations. But the amount of insurance provided on any 

one described premises will not be more than the Limit Of 

Insurance specified in each Extension Of Coverage if a 

limit is included in the extension. 

1. Debris Removal 

a. Subject to Paragraphs c. and d., we will pay your 

expense to remove debris of Covered Property 

caused by a Covered Cause Of Loss that occurs 

during the policy period. 

If a covered building or structure is damaged by 

one or more broken or fallen trees, in any one occurrence, we will pay up to $500 for the removal of 

tree debris from each described premises. 

The expenses will be paid only if they are reported 

to us in writing within 180 days of the date of accidental direct physical loss. 

b. Debris Removal does not apply to costs to: 

(1) Extract “pollutants” from land or water; or 

(2) Remove, restore or replace polluted land or 

water. 

c. Subject to the exceptions in Paragraph d. the following provisions apply: 

(1) The most that we will pay for the total of accidental direct physical loss plus debris removal 

expense is the Limit Of Insurance applicable to 

the Covered Property that has sustained loss. 

(2) Subject to Paragraph (1) above, the amount 

we will pay for debris removal expense is limited to 25% of the sum of the deductible plus 

the amount that we pay for accidental direct 

physical loss to the Covered Property that has 

sustained loss. 

d. We will pay up to an additional $10,000 for debris 

removal expense, for each described premises, in 

any one occurrence of accidental direct physical 

loss to Covered Property, if one or both of the following circumstances apply: 

(1) The total of the actual debris removal expense 

plus the amount we pay for accidental direct 

physical loss exceeds the Limit Of Insurance on 

the Covered Property that has sustained loss. 

(2) The actual debris removal expense exceeds 

25% of the sum of the deductible plus the 

amount that we pay for accidental direct physical loss to the Covered Property that has sustained loss. 

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Therefore, if Paragraphs d.(1) and/or d.(2) apply, our 

total payment for accidental direct physical loss and 

debris removal expense may reach but will never exceed the Limit Of Insurance on the Covered Property 

that has sustained loss, plus $10,000. 

2. Preservation Of Property 

If it is necessary to move Covered Property from the 

described premises to preserve it from loss by a Covered Cause Of Loss, we will pay for any accidental direct physical loss to that property: 

a. While it is being moved or while temporarily stored 

at another location; and 

b. Only if the loss occurs within 30 days after the 

property is first moved. 

The amount we pay under this Extension of Coverage 

will not increase the applicable Limit Of Insurance. 

3. Fire Department Service Charge 

When the fire department is called to save or protect 

Covered Property from a Covered Cause Of Loss, the 

most we will pay for loss in any one occurrence, at the 

described premises, is the Limit Of Insurance for Fire 

Department Service Charge shown in the Declarations 

for your liability for fire department charges: 

a. Assumed by contract or agreement prior to loss; or 

b. Required by local ordinance. 

The amount that we pay under this Extension Of Coverage is an additional amount of insurance. 

4. Collapse 

a. With respect to buildings: 

(1) Collapse means an abrupt falling down or caving 

in of a building or any part of a building with the 

result that the building or part of the building cannot be occupied for its intended purpose; 

(2) A building or any part of a building that is in 

danger of falling down or caving in is not considered to be in a state of collapse; 

(3) A part of a building that is standing is not considered to be in a state of collapse even if it 

has separated from another part of the building; and 

(4) A building that is standing or any part of a 

building that is standing is not considered to be 

in a state of collapse even if it shows evidence 

of cracking, bulging, sagging, bending, leaning, 

settling, shrinkage or expansion. 

b. We will pay for accidental direct physical loss to 

Covered Property, caused by collapse of a building 

or any part of a building that is insured under this 

coverage form or that contains Covered Property 

insured under this coverage form, if the collapse is 

caused by one or more of the following: 

(1) Any of the “specified causes of loss” or by 

breakage of building glass, all only as insured 

against in this coverage form; 

(2) Decay that is hidden from view, unless the 

presence of such decay is known to an insured 

prior to collapse; 

(3) Insect or vermin damage that is hidden from 

view, unless the presence of such damage is 

known to an insured prior to collapse; 

(4) Weight of people or personal property; 

(5) Weight of rain that collects on a roof; or 

(6) Use of defective material or methods in construction, remodeling or renovation if the collapse occurs during the course of the 

construction, remodeling or renovation. However, if the collapse occurs after construction, 

remodeling or renovation is complete and is 

caused in part by a cause of loss listed in Paragraphs (1) through (5), we will pay for the loss 

even if use of defective material or methods in 

construction, remodeling or renovation, contributes to the collapse. 

The criteria set forth in Paragraphs a.(1) through 

a.(4) do not limit the coverage otherwise provided 

under this Extension Of Coverage for the causes of 

loss listed in Paragraphs b.(1), b.(4), and b.(5). 

c. With respect to the following property: 

(1) Awnings; 

(2) Gutters and downspouts; 

(3) Yard fixtures; 

(4) Outdoor swimming pools; 

(5) Piers, wharves and docks; 

(6) Beach or diving platforms or appurtenances; 

(7) Retaining walls; and 

(8) Walks, roadways and other paved surfaces; 

if the collapse is caused by a cause of loss listed in 

Paragraphs b.(2) through b.(6), we will pay for loss 

to that property only if such loss is a direct result of 

the collapse of a building insured under this coverage form and the property is Covered Property under this coverage form. 

d. If personal property abruptly falls down or caves in 

and such collapse is not the result of collapse of a 

building, we will pay for loss to Covered Property 

caused by such collapse of personal property only 

if: 

(1) The collapse of personal property was caused 

by a cause of loss listed in Paragraphs b.(1)

through b.(6) of this Extension Of Coverage; 

(2) The personal property which collapses is inside a building; and 

(3) The property which collapses is not of a kind 

listed in Paragraph c. above, regardless of 

whether that kind of property is considered to 

be personal property or real property. 

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The coverage stated in this Paragraph d. does not 

apply to personal property if marring and/or 

scratching is the only damage to that personal 

property caused by the collapse. 

Collapse of personal property does not mean 

cracking, bulging, sagging, bending, leaning, settling, shrinkage or expansion. 

e. The amount we pay under this Extension Of Coverage will not increase the applicable Limit Of Insurance. 

5. Water Damage, Other Liquids, Powder Or Molten 

Material Damage 

If loss caused by covered water or other liquid, powder 

or molten material occurs, we will also pay the cost to 

tear out and replace any part of the covered building or 

structure to repair damage to the system or appliance 

from which the water or other substance escapes. 

We will not pay the cost to repair any defect that 

caused the loss; but we will pay the cost to repair or 

replace damaged parts of fire extinguishing equipment 

if the damage: 

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

b. Is directly caused by freezing. 

The amount we pay under this Extension Of Coverage 

will not increase the applicable Limit Of Insurance. 

6. Pollutant Clean Up And Removal 

We will pay your expense to extract “pollutants” from 

land or water at the described premises if the discharge, 

dispersal, seepage, migration, release or escape of the 

“pollutants” is caused by a Covered Cause Of Loss that 

occurs during the policy period. The expenses will be 

paid only if they are reported to us in writing within 180 

days of the date on which the Covered Cause Of Loss 

occurs. 

This Extension Of Coverage does not apply to costs to 

test for, monitor or assess the existence, concentration 

or effects of “pollutants“. But we will pay for testing 

which is performed in the course of extracting the “pollutants” from the land or water. 

The most we will pay for each described premises under 

this Extension Of Coverage is the Limit Of Insurance for 

Pollutant Clean Up And Removal shown in the Declarations. This limit is for the sum of all such expenses arising out of Covered Causes Of Loss occurring during 

each separate 12 month period of this policy. 

The amount we pay under this Extension Of Coverage 

is an additional amount of insurance. 

7. Money Orders And Counterfeit Money 

We will pay for loss resulting directly from your having 

accepted in good faith, in exchange for merchandise, 

“money“ or services: 

a. Money orders issued by any post office, express 

company or bank that are not paid upon presentation; or 

b. “Counterfeit money” that is acquired during the 

regular course of business. 

The most we will pay for any loss in any one occurrence 

is the Limit Of Insurance for Money Orders And “Counterfeit Money” shown in the Declarations. 

The amount we pay under this Extension Of Coverage 

is an additional amount of insurance. 

8. Forgery Or Alteration 

a. We will pay for loss resulting directly from forgery 

or alteration of any check, draft, promissory note, 

bill of exchange or similar written promise of payment in “money” that you or your agent has issued, 

or that was issued by someone who impersonates 

you or your agent. 

b. If you are sued for refusing to pay the check, draft, 

promissory note, bill of exchange or similar written 

promise of payment in “money”, on the basis that it 

has been forged or altered, and you have our written consent to defend against the suit, we will pay 

for any reasonable legal expenses that you incur in 

that defense. 

c. For the purpose of this coverage, check includes a 

substitute check as defined in the Check Clearing 

for the 21st Century Act, and will be treated the 

same as the original it replaced. 

d. The most we will pay for any loss, including legal 

expenses, in any one occurrence is the Limit Of Insurance for Forgery Or Alteration shown in the 

Declarations. 

The amount we pay under this Extension Of Coverage 

is an additional amount of insurance. 

9. Increased Cost Of Construction And Demolition 

Cost 

a. This Extension Of Coverage applies only to buildings insured on a replacement cost basis. 

b. In the event of damage by a Covered Cause Of 

Loss to a building that is Covered Property, we will 

pay the: 

(1) Increased costs incurred to comply with enforcement of an ordinance or law in the course 

of repair, rebuilding or replacement of damaged parts of that property; and 

(2) Cost to demolish and clear the site of undamaged parts of the same building, as a consequence of enforcement of an ordinance or law 

that requires demolition of such undamaged 

property; 

subject to the limitations stated in Paragraphs c.

through i. of this Extension Of Coverage. 

c. The ordinance or law referred to in this Extension 

Of Coverage is an ordinance or law that is in force 

at the time of loss and regulates the demolition, repair, rebuilding, or replacement of buildings or establishes zoning or land use requirements at the 

described premises, and is in force at: 

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(1) The described premises; or 

(2) Another premises, if such ordinance or law requires relocation. 

d. Under this Extension Of Coverage, we will not pay 

any costs due to an ordinance or law that: 

(1) You were required to comply with before the 

loss, even when the building was undamaged; 

and 

(2) You failed to comply with. 

e. Under this Extension Of Coverage, we will not pay 

for: 

(1) The enforcement of any ordinance or law 

which requires demolition, repair, rebuilding, 

replacement, remodeling or remediation of 

property due to contamination by “pollutants“ 

or due to the presence, growth, proliferation, 

spread or any activity of “fungi“, wet or dry rot, 

virus, bacteria or other microorganisms; or 

(2) Any costs associated with the enforcement of 

any ordinance or law which 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 of “pollutants“, “fungi“, wet or dry rot, virus, bacteria or 

other microorganisms. 

f. The most we will pay under this Extension Of Coverage, for each described premises insured under 

SECTION I — PROPERTY, is the lesser of: 

(1) The amount you actually spend: 

(a) For the increased cost to repair, rebuild or 

replace the building at the described or 

another premises in the same general vicinity if relocation is required by ordinance 

or law, but not more than a building of the 

same height, floor area, and style on the 

same or similar premises as the damaged 

building; and 

(b) To demolish and clear the site of the undamaged parts of the building at the described premises caused by enforcement 

of any ordinance or law; or 

(2) The percentage for Increased Cost of Construction and Demolition Cost applied to the 

Limit Of Insurance applicable to that damaged 

building as shown in the Declarations. 

If a damaged building is covered under a blanket Limit Of Insurance which applies to more 

than one building, then the most we will pay under this Extension Of Coverage is the amount 

determined by applying the percentage as 

shown in the Declarations to the risk amount 

shown in our records as of the most recent Declarations applicable to that damaged building. 

The amount we pay under this Extension Of Coverage will not increase the applicable Limit Of Insurance. 

g. With respect to this Extension Of Coverage: 

(1) We will not pay for the: 

(a) Increased Cost Of Construction: 

i. Until the property is actually repaired, 

rebuilt or replaced, at the described or 

another premises; and 

ii. Unless the repairs, rebuilding or replacement are made as soon as reasonably possible after the loss, not to 

exceed two years. We may extend this 

period in writing during the two years. 

(b) Loss of value for the undamaged portion of 

the building caused by enforcement of any 

ordinance or law. 

(2) If the building is repaired, rebuilt or replaced at 

the described premises, or if you elect to rebuild at another premises, the most we will pay 

for the Increased Cost Of Construction is the 

increased cost of construction at the described 

premises. 

(3) If the ordinance or law requires relocation to another premises, the most we will pay for the Increased Cost Of Construction is the increased 

cost of construction at the new premises. 

h. This Extension Of Coverage is not subject to the 

terms of the Ordinance Or Law Exclusion, to the 

extent that such Exclusion would conflict with the 

provisions of this Extension Of Coverage. 

i. The amount payable under this Extension Of Coverage, as stated in Paragraph f. of this Extension 

Of Coverage, is not subject to Paragraph 

e.(4)(a)iv. under Loss Payment of SECTION I — 

CONDITIONS. 

10. Glass Expenses 

If Covered Property is damaged by a Covered Cause 

Of Loss we will pay for expenses incurred to: 

a. Put up temporary plates or board up openings if repair or replacement of damaged glass is delayed. 

b. Remove or replace obstructions when repairing or 

replacing glass that is part of a building. This does 

not include removing or replacing window displays. 

The amount we pay under this Extension Of Coverage 

will not increase the applicable Limit Of Insurance. 

11. Fire Extinguisher Systems Recharge Expense 

a. We will pay: 

(1) The cost of recharging or replacing, whichever 

is less, your fire extinguishers and fire extinguishing systems (including hydrostatic testing 

if needed) if they are discharged on or within 

100 feet of the described premises; and 

(2) For loss to Covered Property if such loss is the 

result of an accidental discharge of chemicals 

from a fire extinguisher or a fire extinguishing 

system. 

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b. No coverage will apply if the fire extinguishing system is discharged during installation or testing. 

c. The most we will pay for loss in any one occurrence is the Limit Of Insurance for Fire Extinguisher Systems Recharge Expense shown in the 

Declarations. 

The amount we pay under this Extension Of Coverage 

is an additional amount of insurance. 

12. Newly Acquired Or Constructed Property 

a. Buildings 

If this coverage form covers Buildings, you may extend that insurance to apply to: 

(1) Your new buildings while being built on the described premises; and 

(2) Buildings you acquire not at the described 

premises, intended for: 

(a) Similar use as the building at the described 

premises; or 

(b) Use as a warehouse. 

The most we will pay for loss under this Extension 

Of Coverage at each building, is the Limit Of Insurance for Newly Acquired Or Constructed Buildings 

shown in the Declarations. 

The amount we pay under this Extension Of Coverage is an additional amount of insurance. 

b. Business Personal Property 

If this coverage form covers Business Personal 

Property, you may extend that insurance to apply 

to Business Personal Property: 

(1) Including such property that you newly acquire, 

at any premises you acquire; or 

(2) Including such property that you newly acquire, 

located at your newly constructed or acquired 

buildings at the described premises. 

This Extension Of Coverage does not apply to personal property that you temporarily acquire in the 

course of installing or performing work on such 

property or your wholesale activities. 

The most we will pay for loss under this Extension 

Of Coverage at each building, is the Limit Of Insurance for Newly Acquired Business Personal Property shown in the Declarations. 

The amount we pay under this Extension Of Coverage is an additional amount of insurance. 

c. Period Of Coverage 

With respect to insurance on or at each newly acquired or constructed property, coverage will end 

when any of the following first occurs: 

(1) This policy expires; 

(2) 30 days expire after you acquire the property 

or begin construction of that part of the building 

that would qualify as covered property; or 

(3) You report values to us. 

We will charge you additional premium for values 

reported from the date you acquire the property or 

begin construction of that part of the building that 

would qualify as covered property. 

13. Personal Property Off Premises 

You may extend the insurance provided by this coverage form to apply to your Covered Property, other than 

“money” and “securities”, “valuable papers and records” 

or accounts receivable, while it is in the course of transit 

or at another premises. The most we will pay for loss in 

any one occurrence under this Extension Of Coverage 

is the Limit Of Insurance for Personal Property Off Premises shown in the Declarations. 

The amount we pay under this Extension Of Coverage 

is an additional amount of insurance. 

If the Covered Property is located at another premises 

you own, lease, operate, or regularly use, the insurance 

provided under this extension applies only if the loss occurs within 90 days after the property is first moved. 

The Other Insurance Condition contained in SECTION I 

AND SECTION II — COMMON POLICY CONDITIONS does not apply to this Extension Of Coverage. 

The insurance provided under this Extension Of Coverage is primary and does not contribute with any other 

insurance. 

14. Outdoor Property 

You may extend the insurance provided by this coverage form to apply to your outdoor radio and television 

antennas (including satellite dishes), trees, shrubs, 

plants and lawns (other than trees, shrubs, plants or 

lawns held as “stock”). The loss must be caused by 

any of the following causes of loss: 

a. Fire; 

b. Lightning; 

c. Explosion; 

d. Riot or civil commotion; 

e. Aircraft or vehicles; 

f. Vandalism; or 

g. Theft. 

The most we will pay for loss in any one occurrence, at 

the described premises, under this Extension Of Coverage is the Limit Of Insurance for Outdoor Property 

shown in the Declarations. But we will not pay more 

than $1,000 for any one tree, shrub or plant. 

The amount we pay under this Extension Of Coverage 

is an additional amount of insurance. 

15. Personal Effects 

You may extend the insurance that applies to Business 

Personal Property to apply to personal effects owned by 

you, your employees, your partners or members (if you 

are a partnership or joint venture), your “managers” or 

“members” (if you are a limited liability company), or 

your ”executive officers” (if you are an organization other 

than a partnership, joint venture or limited liability company). This extension does not apply to: 

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a. Tools or equipment used in your business; or 

b. Loss by theft. 

The most we will pay for loss in any one occurrence, at 

the described premises, under this Extension Of Coverage is the Limit Of Insurance for Personal Effects 

shown in the Declarations. 

The amount we pay under this Extension Of Coverage 

is an additional amount of insurance. 

16. Valuable Papers And Records 

a. You may extend the insurance provided by this 

coverage form to apply to “valuable papers and 

records” that you own, or that are in your care, custody or control caused by a Covered Cause Of 

Loss. This Extension Of Coverage includes the 

cost to research, replace or restore the lost information on “valuable papers and records” for which 

duplicates do not exist. 

b. This Extension Of Coverage does not apply to: 

(1) Property held as samples or for delivery after 

sale; and 

(2) Property in storage away from the described 

premises. 

c. The most we will pay for loss to “valuable papers and 

records” in any one occurrence, at the described 

premises, under this Extension Of Coverage is the 

Limit Of Insurance for Valuable Papers And Records 

(On Premises) shown in the Declarations. 

For “valuable papers and records” not at the described premises, the most we will pay for loss in any 

one occurrence under this Extension of Coverage is 

the Limit Of Insurance for Valuable Papers And Records (Off Premises) shown in the Declarations. 

The amount we pay under this Extension Of Coverage is an additional amount of insurance. 

d. Loss to “valuable papers and records” will be valued at the cost of restoration or replacement of the 

lost or damaged information. To the extent that the 

contents of the “valuable papers and records” are 

not restored, the “valuable papers and records” will 

be valued at the cost of replacement with blank 

materials of substantially identical type. 

17. Accounts Receivable 

a. You may extend the insurance provided by this 

coverage form to apply to accounts receivable. We 

will pay: 

(1) All amounts due from your customers that you 

are unable to collect; 

(2) Interest charges on any loan required to offset 

amounts you are unable to collect pending our 

payment of these amounts; 

(3) Collection expenses in excess of your normal 

collection expenses that are made necessary 

by loss; and 

(4) Other reasonable expenses that you incur to reestablish your records of accounts receivable; 

that result from loss by any Covered Cause Of 

Loss to your records of accounts receivable. 

b. The most we will pay for loss in any one occurrence, at the described premises, under this Extension Of Coverage is the Limit Of Insurance for 

Accounts Receivable (On Premises) shown in the 

Declarations. 

For accounts receivable not at the described premises, the most we will pay for loss in any one occurrence under this Extension Of Coverage is the 

Limit Of Insurance for Accounts Receivable (Off 

Premises) shown in the Declarations. 

The amount we pay under this Extension Of Coverage is an additional amount of insurance. 

c. The following exclusion applies to the Accounts 

Receivable Extension Of Coverage: 

We will not pay for: 

(1) Loss caused by alteration, falsification, concealment or destruction of records of accounts 

receivable done to conceal the wrongful giving, 

taking or withholding of “money”, “securities” or 

other property. 

This exclusion applies only to the extent of the 

wrongful giving, taking or withholding. 

(2) Loss caused by bookkeeping, accounting or 

billing errors or omissions. 

(3) Any loss that requires any audit of records or 

any inventory computation to prove its factual 

existence. 

18. Signs 

You may extend the insurance provided by this coverage form to apply to signs attached to buildings 

(whether indoor or outdoor) at the described premises 

and to outdoor signs not attached to buildings at the 

described premises which are owned by you, or owned 

by others but are in your care, custody or control. 

The most we will pay for loss in any one occurrence 

under this Extension Of Coverage is the Limit Of Insurance for Signs shown in the Declarations. 

The amount we pay under this Extension Of Coverage 

is an additional amount of insurance. 

19. Arson Reward 

We will pay a reward for information which leads to an 

arson conviction in connection with a fire loss covered 

under this coverage form. 

Regardless of the number of persons involved in 

providing information, the most we will pay for loss in 

any one occurrence under this Extension Of Coverage 

is the Limit Of Insurance for Arson Reward shown in 

the Declarations. 

The amount we pay under this Extension Of Coverage 

is an additional amount of insurance. 

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20. Damage To Non-Owned Buildings From Theft, Burglary Or Robbery 

You may extend the insurance that applies to Business 

Personal Property to apply to a building or part of a 

building, including equipment pertaining to the service 

of the building, occupied but not owned by you caused 

by actual or attempted theft, burglary or robbery. 

This Extension Of Coverage does not apply to: 

a. Glass, other than glass building blocks; 

b. Any lettering or ornamentation; or 

c. Building property or equipment removed from the 

described premises. 

The amount we pay under this Extension Of Coverage 

will not increase the applicable Limit Of Insurance. 

21. Property Of Others 

You may extend the insurance that applies to Business 

Personal Property to apply to personal property of others in your care, custody or control only while the personal property is located at the described premises. 

The most we will pay for loss in any one occurrence 

under this Extension Of Coverage is the Limit Of Insurance for Property Of Others shown in the Declarations. 

The amount we pay under this Extension Of Coverage 

is an additional amount of insurance. 

This Extension Of Coverage does not apply to: 

a. Personal effects owned by you, your employees, 

your partners or members (if you are a partnership or 

joint venture), your “managers” or “members” (if you 

are a limited liability company), or your ”executive officers” (if you are an organization other than a partnership, joint venture or limited liability company); or 

b. Personal property of others that must be restored, 

repaired or replaced because your work was incorrectly performed on it. 

The Other Insurance Condition contained in SECTION I AND SECTION II — COMMON POLICY 

CONDITIONS does not apply to this Extension Of 

Coverage. The insurance provided under this Extension Of Coverage is primary and does not contribute 

with any other insurance. We will decide if our payment for loss under this extension will be made to you 

or to the owner of the property. 

22. Equipment Breakdown 

a. You may extend the insurance provided by this coverage form to apply for direct physical loss to Covered Property caused by an “accident” to “covered 

equipment”. The most we will pay for each covered 

loss under this Extension Of Coverage is the Limit Of 

Insurance that applies to the Covered Property, unless a specific limit is stated in the Additional Coverages below. 

The amount we pay under this Extension Of Coverage, or any Additional Coverage described below, will 

not increase the applicable Limit Of Insurance. 

b. Equipment Breakdown Additional Coverage 

(1) Expediting Expenses. We will pay up to 

$100,000 for the reasonable extra cost to: 

(a) Make temporary repairs to; and 

(b) Expedite permanent repairs or permanent 

replacement of; 

Covered Property damaged by an “accident” to 

“covered equipment”. 

The amount we pay under this Expediting Expenses Additional Coverage will not increase 

the applicable Limit Of Insurance. 

(2) Drying Out Expenses. We will pay, up to the 

applicable Limit Of Insurance for Coverage A 

– Buildings or Coverage B – Business Personal Property, whichever applies, the direct 

expenses of drying out wetness in electrical 

“covered equipment” caused by one of the 

items listed in Paragraph 1.h. under SECTION I 

— EXCLUSIONS. 

The amount we pay under this Drying Out Expenses Additional Coverage will not increase 

the applicable Limit Of Insurance. 

The water damage exclusions found in Paragraph 1.h. under SECTION I — EXCLUSIONS

do not apply to this Drying Out Expenses Additional Coverage. 

(3) Spoilage. We will pay up to $100,000 for 

physical loss to “perishable goods” at the described premises due to: 

(a) Spoilage; 

(b) Contamination from the release of refrigerant, including but not limited to ammonia; or 

(c) Any necessary expenses you incur to reduce the amount of loss under this Spoilage Additional Coverage to the extent that 

they do not exceed the amount of loss that 

otherwise would have been payable under 

this Spoilage Additional Coverage. 

Such loss to “perishable goods” must be directly 

caused by an “accident” to “covered equipment”. 

The amount we pay under this Spoilage Additional Coverage will not increase the applicable 

Limit Of Insurance. 

(4) Service Interruption

(a) If Loss Of Income And Extra Expense endorsement is shown in the Declarations, 

you may extend that insurance to apply to 

an “accident” to “utility service equipment”. 

(b) You may extend the insurance provided in 

the Spoilage Additional Coverage above to 

apply to your loss, damage or expense 

caused by an “accident” to “utility service 

equipment”. 

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(c) The coverage provided by this Service Interruption Additional Coverage will not apply unless the failure or disruption of 

service exceeds 24 hours in length, immediately following the “accident”. However, 

once this waiting period is met, coverage 

will begin at the initial time of the failure or 

disruption of service. 

The amount we pay under this Service Interruption Additional Coverage will not increase 

the applicable Limit Of Insurance. 

(5) Data Restoration. We will pay up to $100,000 

for the reasonable and necessary cost to research, replace or restore “electronic data” 

which has been destroyed or corrupted by an 

“accident” to “covered equipment”. To the extent 

that “electronic data” is not replaced or restored, 

the loss will be valued at the cost of replacement of the media on which the “electronic data” 

was stored, with blank media of substantially 

identical type. 

If Loss Of Income And Extra Expense endorsement is shown in the Declarations, you 

may extend that insurance to apply to an “accident” to “covered equipment” caused by an 

interruption of computer operations due to destruction or corruption of “electronic data”. The 

amount we pay will be subject to the same 

$100,000 limit of insurance. 

The amount we pay under this Data Restoration Additional Coverage will not increase the 

applicable Limit Of Insurance. 

c. Hazardous Substances Limitation. The most we 

will pay for the increased cost to repair or replace 

Covered Property and the increased cost to clean 

up or dispose of such property caused by “hazardous substance” contamination resulting from an 

“accident” to “covered equipment” is $100,000. 

This does not include contamination of “perishable 

goods” by refrigerant, including but not limited to 

ammonia, which is addressed in Paragraph 

22.b.(3)(b) above. For the purposes of this limitation, increased cost means costs beyond what 

would have been required had no “hazardous substance” been involved. 

If Loss Of Income And Extra Expense endorsement 

is shown in the Declarations, any increased loss 

under such coverage caused by “hazardous substance” contamination to Covered Property resulting 

from an “accident” to “covered equipment” will be 

subject to and included in the same $100,000 Limit 

Of Insurance. For the purposes of this limitation, increased loss means any loss or expense covered 

under Loss Of Income coverage beyond what would 

have been sustained or incurred had no “hazardous 

substance” been involved. 

The amount we pay under this Hazardous Substance Limitation will not increase the applicable 

Limit Of Insurance. 

d. One Loss. If an initial “accident” causes other “accidents”, all will be considered one loss. All “accidents” that are the result of the same event will be 

considered one loss. 

e. To the extent of any coverage provided under this 

Extension Of Coverage: 

(1) Paragraph 9. under Property Not Covered is 

deleted. 

(2) Paragraphs 1.a. and 1.b. under Property Subject To Limitations are deleted. 

(3) Paragraph 1.f. of SECTION I — EXCLUSIONS

is replaced by the following: 

f. The failure of power or other utility service 

supplied to the described premises, if the 

failure occurs away from the described 

premises, except as provided in the Extensions of Coverage - Equipment Breakdown. 

Failure includes lack of sufficient capacity 

and reduction in supply. 

(4) Paragraphs 2.a. and 2.d. of SECTION I — 

EXCLUSIONS are deleted. 

(5) Paragraph 2.l. of SECTION I — EXCLUSIONS

is replaced by the following: 

l. Other Types Of Loss

(1) Wear and tear; 

(2) Rust or other corrosion, decay, deterioration, hidden or latent defect or any 

quality in property that causes it to 

damage or destroy itself; 

(3) Smog; 

(4) Settling, cracking, shrinking or expansion; 

(5) Nesting or infestation, or discharge or 

release of waste products or secretions, by insects, birds, rodents or other animals; 

(6) The following causes of loss to personal property: 

(a) Dampness or dryness of atmosphere, except as provided in the 

Equipment Breakdown Extension 

Of Coverage; 

(b) Changes in or extremes of temperature, except as provided in the 

Equipment Breakdown Extension 

Of Coverage; or 

(c) Marring or scratching. 

But if an excluded cause of loss that is 

listed in Paragraphs (1) through (6) above 

results in direct physical loss to Covered 

Property by an “accident” to “covered 

equipment” we will pay for that resulting 

loss. 

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f. We will not pay under this Extension Of Coverage 

for loss caused by: 

(1) A hydrostatic, pneumatic or gas pressure test 

of any boiler or pressure vessel; or 

(2) An insulation breakdown test of any type of 

electrical equipment. 

g. If Loss Of Income And Extra Expense endorsement 

is shown in the Declarations, we will not pay for delay in resuming operations due to the need to reconstruct or re-input data or programs on electronic 

media and records, except as provided in this 

Equipment Breakdown Extension Of Coverage. 

h. With respect to Service Interruption Additional Coverage above, we will not pay for an “accident” 

caused by: fire; lightning; windstorm or hail; explosion (except as specifically provided in Paragraph 

1.c. of SECTION I — DEFINITIONS); smoke; aircraft 

or vehicles; riot or civil commotion; vandalism; sprinkler leakage; falling objects; weight of snow, ice or 

sleet; freezing; collapse; flood or earth movement. 

i. Additional Conditions

(1) Suspension. When any “covered equipment” is 

found to be in or exposed to a dangerous condition, any of our representatives may immediately suspend the insurance against loss to any 

property from an “accident” to that “covered 

equipment”. We can do this by mailing or delivering a written notice of suspension to your address as shown in the Declarations, or at the 

address where the equipment is located. Once 

suspended in this way, your insurance can be 

reinstated only by an endorsement for that 

“covered equipment.” If we suspend your insurance, you will get a pro rata refund of premium. 

But the suspension will be effective even if we 

have not yet made or offered a refund. 

(2) Jurisdictional Inspections. If any property that 

is “covered equipment” under this Extension Of 

Coverage requires inspection to comply with 

state or municipal boiler and pressure vessel 

regulations, we agree to perform such inspection on your behalf. 

(3) Environmental, Safety And Efficiency Improvements. If “covered equipment” requires 

replacement due to an “accident”, we will pay 

your additional cost to replace with equipment 

that is better for the environment, safer or more 

efficient than the equipment being replaced. 

However, we will not pay more than 125% of 

what the cost would have been to replace with 

like kind and quality. This condition does not 

increase any of the applicable limits. This condition does not apply to any property to which 

actual cash value applies. 

23. Ordinance Or Law – Equipment Coverage 

a. Subject to Paragraph b. below, if a Covered Cause 

Of Loss occurs to equipment that is Covered 

Property, we will pay to repair or replace the 

equipment as required by law. 

b. If a Covered Cause Of Loss occurs to refrigeration 

equipment that is Covered Property, we will pay: 

(1) The cost to reclaim the refrigerant as required 

by law; 

(2) The cost to retrofit the equipment to use a nonCFC refrigerant as required by the Clean Air 

Act of 1990, and any amendments thereto or 

any other similar laws; and 

(3) The increased cost to recharge the system 

with a non-CFC refrigerant. 

The amount we pay under this Extension Of Coverage will not increase the applicable Limit Of Insurance. 

c. We will not pay under this Extension Of Coverage 

for the costs associated with the enforcement of 

any ordinance or law which 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 of “pollutants”, 

“fungi”, wet or dry rot, virus, bacteria or other microorganisms. 

d. Loss to the equipment will be determined as follows: 

(1) If the equipment is repaired or replaced, on the 

described or another premises, we will not pay 

more than the lesser of: 

(a) The amount you actually spend to repair 

the equipment, but not for more than the 

amount it would cost to replace the equipment with equipment of the same kind and 

quality; or 

(b) The Limit Of Insurance shown in the Declarations as applicable to the covered 

Building or Business Personal Property. 

(2) If the equipment is not repaired or replaced, 

we will not pay more than the lesser of: 

(a) The actual cash value of the equipment at 

the time of loss; or 

(b) The Limit Of Insurance shown in the Declarations as applicable to the Building or 

Business Personal Property. 

(3) We will not pay for loss due to any ordinance 

or law that: 

(a) You were required to comply with before 

the loss, even if the equipment was undamaged; and 

(b) You failed to comply with. 

e. This Extension Of Coverage is not subject to the 

terms of the Ordinance Or Law Exclusion, to the 

extent that such Exclusion would conflict with the 

provisions of this Extension Of Coverage. 

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SECTION I — LIMITS OF INSURANCE 

1. Unless otherwise stated, the most we will pay for loss 

in any one occurrence is the applicable Limit Of Insurance of SECTION I — PROPERTY shown in the Declarations. 

2. Inflation Coverage

If the Declarations indicate that Inflation Coverage applies then the Limits Of Insurance shown in the Declarations for Coverage A – Buildings and Coverage B 

– Business Personal Property will adjust as determined below during the term of this policy at the same 

rate as the Inflation Coverage Index shown in the Declarations for each coverage. 

The most we will pay for loss in any one occurrence is 

the adjusted applicable Limit Of Insurance on the date 

of that occurrence. 

To determine a limit on a given date: 

a. Divide the applicable Inflation Coverage Index on 

that date by the Inflation Coverage Index as shown 

in the Declarations or as amended as described 

below; then 

b. Multiply the resulting factor by the applicable Limit 

Of Insurance. 

The Limits Of Insurance will not be reduced to less 

than the amounts shown in the Declarations. 

If during the term of this policy the Limit Of Insurance 

for Coverage A – Buildings or Coverage B – Business Personal Property is changed at your request, 

the applicable Inflation Coverage Index as of the effective date shown in the Declarations is amended to coincide with the effective date of such change. 

3. Business Personal Property Limit – Seasonal Increase

a. The Limit Of Insurance for Coverage B – Business 

Personal Property will automatically increase by the 

percentage shown in the Declarations to provide for 

seasonal variations. 

b. This increase will apply only if the Limit Of Insurance shown for Coverage B – Business Personal Property in the Declarations is at least 100% of 

your average monthly values during the lesser of: 

(1) The 12 months immediately preceding the date 

the loss occurs; or 

(2) The period of time you have been in business as 

of the date the loss occurs. 

SECTION I — DEDUCTIBLES 

1. We will not pay for loss in any one occurrence until the 

amount of loss exceeds the Basic Deductible shown in 

the Declarations. We will then pay the amount of loss 

in excess of the Basic Deductible up to the applicable 

Limit Of Insurance of SECTION I — PROPERTY. 

2. Regardless of the amount of the Basic Deductible, the 

most we will deduct from any loss under a coverage for 

which a Special Deductible is shown in the Declarations 

is the amount of the Special Deductible shown for that 

coverage. 

The Special Deductibles will not increase the Basic 

Deductible shown in the Declarations. The Special Deductibles will be used to satisfy the requirements of the 

Basic Deductible in the Declarations. 

3. No deductible applies to the following Extensions Of 

Coverage: 

a. Fire Department Service Charge; 

b. Fire Extinguisher Systems Recharge Expense; and 

c. Arson Reward. 

SECTION I — CONDITIONS 

1. Property Loss Conditions 

a. Abandonment 

There can be no abandonment of any property to us. 

b. Appraisal 

If we and you disagree on the value of the property 

or the amount of loss, either may make written 

demand for an appraisal of the loss. In this event, 

each party will select a competent and impartial 

appraiser. Each party will notify the other of the selected appraiser’s identity within 20 days after receipt of the written demand for an appraisal. The 

two appraisers will select an umpire. If the appraisers cannot agree upon an umpire within 15 days, 

either may request that selection be made by a 

judge of a court having jurisdiction. The appraisers 

will state separately the value of the property and 

amount of loss. If they fail to agree, they will submit 

their differences to the umpire. A decision agreed 

to by any two will be binding. Each party will: 

(1) Pay its chosen appraiser; and 

(2) Bear the other expenses of the appraisal and 

umpire equally. 

If there is an appraisal, we will still retain our right 

to deny the claim. 

c. Duties In The Event Of Loss 

(1) You must see that the following are done in the 

event of loss to Covered Property: 

(a) Notify the police if a law may have been 

broken. 

(b) Give us prompt notice of the loss. Include 

a description of the property involved. 

(c) As soon as possible, give us a description 

of how, when and where the loss occurred. 

(d) Take all reasonable steps to protect the 

Covered Property from further damage, 

and keep a record of your emergency 

and temporary repair expenses necessary to protect the Covered Property, for 

consideration in the settlement of the 

claim. This will not increase the Limits Of 

Insurance of SECTION I — PROPERTY. 

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

However, we will not pay for any subsequent loss resulting from a cause of loss 

that is not a Covered Cause Of Loss. Also, 

if feasible, set the damaged property aside 

and in the best possible order for examination. 

(e) At our request, give us complete inventories of the damaged and undamaged 

property. Include quantities, costs, values 

and amount of loss claimed. 

(f) As often as may be reasonably required, 

permit us to inspect the property proving the 

loss and examine your books and records. 

Also permit us to take samples of damaged and undamaged property for inspection, testing and analysis, and permit us to 

make copies from your books and records. 

(g) Send us a signed, sworn proof of loss containing the information we request to investigate the claim. You must do this within 60 

days after our request. We will supply you 

with the necessary forms. 

(h) Cooperate with us in the investigation or 

settlement of the claim. 

(i) Resume all or part of your “operations” as 

quickly as possible. 

(2) We may examine any insured under oath, 

while not in the presence of any other insured 

and at such times as may be reasonably required, about any matter relating to this insurance or the claim, including an insured’s books 

and records. In the event of an examination, 

an insured’s answers must be signed. 

d. Legal Action Against Us 

No one may bring a legal action against us under 

this insurance unless: 

(1) There has been full compliance with all of the 

terms of this insurance; and 

(2) The action is brought within 2 years after the 

date on which the accidental direct physical 

loss occurred. 

e. Loss Payment 

In the event of loss covered by this policy: 

(1) At our option, we will either: 

(a) Pay the value of lost or damaged property; 

(b) Pay the cost of repairing or replacing the 

lost or damaged property; 

(c) Take all or any part of the property at an 

agreed or appraised value; or 

(d) Repair, rebuild or replace the property with 

other property of like kind and quality. 

We will determine e.(1)(a) in accordance with 

the applicable terms of Paragraph e.(4) below 

or any applicable provision which amends or 

supersedes the terms of Paragraph e.(4) below. 

(2) We will give notice of our intentions within 30 

days after we receive the sworn proof of loss. 

(3) We will not pay you more than your lawful financial interest in the Covered Property. 

(4) Except as provided in Paragraphs (b) through 

(e) below, we will determine the value of Covered Property as follows: 

(a) At replacement cost without deduction for 

depreciation, as of the time of loss, subject to 

the following: 

i. We will pay the cost to repair or replace, after application of the deductible and without deduction for 

depreciation, but not more than the 

least of the following amounts: 

1) The Limit Of Insurance under 

SECTION I — PROPERTY that 

applies to the lost or damaged 

property; 

2) The cost to replace, on the described premises, the lost or damaged property with other property 

of comparable material, quality 

and used for the same purpose; or 

3) The amount that you actually 

spend that is necessary to repair 

or replace the lost or damaged 

property. 

If a building is rebuilt at a new premises, the cost is limited to the cost which 

would have been incurred had the 

building been built at the described 

premises. 

ii. You may make a claim for loss covered by this insurance on an actual 

cash value basis instead of on a replacement cost basis. In the event you 

elect to have loss settled on an actual 

cash value basis, you may still make a 

claim on a replacement cost basis if 

you notify us of your intent to do so 

within 180 days after the loss. 

iii. We will not pay on a replacement cost 

basis for any loss: 

1) Until the lost or damaged property 

is actually repaired or replaced; 

and 

2) Unless the repairs or replacement 

are made as soon as reasonably 

possible after the loss. 

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iv. The cost to repair, rebuild or replace 

does not include the increased cost attributable to enforcement of any ordinance or law regulating the construction, 

use or repair of any property. 

(b) The following property at actual cash value 

as of the time of loss: 

i. Property of others, plus the cost of labor, materials, or services furnished or 

arranged by you on such property. 

However, if an item(s) of personal 

property of others is subject to a written contract which governs your liability for loss to that item(s), then 

valuation of that item(s) will be based 

on the amount for which you are liable 

under such contract, but not to exceed 

the lesser of the replacement cost of 

the property or the applicable Limit Of 

Insurance. 

With respect to this provision, property 

used in your business that you lease 

from others or rent from others, or that 

is loaned to you, is not considered 

property of others. 

Under Personal Property Off Premises 

and Property Of Others of SECTION I 

— EXTENSIONS OF COVERAGE, 

the value of property of others in your 

care, custody or control will be determined in accordance with Paragraph 

e.(4)(a) above; 

ii. Household contents, except personal 

property in apartments or rooms furnished by you as landlord; 

iii. Manuscripts; 

iv. Works of art, antiques or rare articles, 

including etchings, pictures, statuary, 

marble, bronzes, porcelain and bric-abrac; and 

v. Used or second-hand merchandise 

held in storage or for sale. 

We will not pay more for loss in any one 

occurrence than the lesser of: 

i. The Limit Of Insurance under SECTION I — PROPERTY that applies to 

the lost or damaged property; or 

ii. The actual cash value of the lost or 

damaged property as of the time of loss. 

(c) Glass at the cost of replacement with safety glazing material if required by law. 

(d) Tenants’ improvements and betterments at: 

i. Replacement cost in accordance with 

the terms set forth in Paragraph 

(4)(a)iii above; 

ii. A proportion of your original cost if you 

do not make repairs as soon as reasonably possible. We will determine 

the proportionate value as follows: 

1) Multiply the original cost by the 

number of days from the loss to 

the expiration of the lease; and 

2) Divide the amount determined in 1)

above by the number of days from 

the installation of improvements to 

the expiration of the lease. 

If your lease contains a renewal option, 

the expiration of the renewal option period will replace the expiration of the lease 

in this procedure; or 

iii. Nothing if others pay for repairs or replacement. 

(e) Applicable only to Accounts Receivable: 

i. If you cannot accurately establish the 

amount of accounts receivable outstanding as of the time of loss: 

1) We will determine the total of the 

average monthly amounts of accounts receivable for the 12 

months immediately preceding the 

month in which the loss occurs; 

and 

2) We will adjust that total for any 

normal fluctuations in the amount 

of accounts receivable for the 

month in which the loss occurred 

or for any demonstrated variance 

from the average for that month. 

ii. The following will be deducted from 

the total amount of accounts receivable, however that amount is established: 

1) The amount of the accounts for 

which there is no loss; 

2) The amount of the accounts that 

you are able to re-establish or collect; 

3) An amount to allow for probable 

bad debts that you are normally 

unable to collect; and 

4) All unearned interest and service 

charges. 

(5) A payment for loss to personal property of others may be provided to you on behalf of the 

owners of the property. We may adjust losses 

with the owners of lost or damaged property if 

other than you. If we pay the owners, such 

payments will satisfy your claims against us for 

the owners’ property. 

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We will not pay the owners more than their financial interest in the Covered Property. 

(6) We may elect to defend you against suits arising from claims of owners of property. We will 

do this at our expense. 

(7) We will pay for covered loss within 30 days after we receive the sworn proof of loss, provided you have complied with all of the terms of 

this policy, and 

(a) We have reached agreement with you on 

the amount of loss; or 

(b) An appraisal award has been made. 

(8) In settling covered losses involving a party 

wall, we will pay a proportion of the loss to the 

party wall based on your interest in the wall in 

proportion to the interest of the owner of the 

adjoining building. However, if you elect to repair or replace your building and the owner of 

the adjoining building elects not to repair or replace that building, we will pay you the full value of the loss to the party wall, subject to all 

applicable policy provisions including Limits Of 

Insurance and all other provisions of this Loss 

Payment Condition. Our payment under the 

provisions of this paragraph does not alter any 

right of subrogation we may have against any 

entity, including the owner or insurer of the adjoining building, and does not alter the terms of 

the Transfer Of Rights Of Recovery Against 

Others To Us Condition in this policy. 

A party wall is a wall that separates and is 

common to adjoining buildings that are owned 

by different parties. 

f. Recovered Property 

If either you or we recover any property after loss 

settlement, that party must give the other prompt 

notice. At your option, you may retain the property. 

But then you must return to us the amount we 

paid to you for the property. We will pay recovery 

expenses and the expenses to repair the recovered property, subject to the Limits Of Insurance of 

SECTION I — PROPERTY. 

g. Vacancy 

(1) Description Of Terms 

(a) As used in this Vacancy Condition, the 

term building and the term vacant have the 

meanings set forth in Paragraphs i. and ii.

below: 

i. When this policy is issued to a tenant, 

and with respect to that tenant’s interest in Covered Property, building 

means the unit or suite rented or 

leased to the tenant. Such building is 

vacant when it does not contain 

enough Business Personal Property to 

conduct customary operations. 

ii. When this policy is issued to the owner 

or general lessee of a building, building means the entire building. Such 

building is vacant unless at least 31% 

of its total square footage is: 

1) Rented to a lessee or sub-lessee 

and used by the lessee or sublessee to conduct its customary 

operations; and/or 

2) Used by the building owner to 

conduct customary operations. 

(b) Buildings under construction or renovation 

are not considered vacant. 

(2) Vacancy Provisions 

If the building where loss occurs has been vacant for more than 60 consecutive days before 

that loss occurs: 

(a) We will not pay for any loss caused by any 

of the following even if they are Covered 

Causes Of Loss: 

i. Vandalism; 

ii. Sprinkler leakage, unless you have 

protected the system against freezing; 

iii. Building glass breakage; 

iv. Water damage; 

v. Theft; or 

vi. Attempted theft. 

(b) With respect to Covered Causes Of Loss 

other than those listed in Paragraphs (a)i.

through (a)vi. above, we will reduce the 

amount we would otherwise pay for the 

loss by 15%. 

2. Property General Conditions 

a. Control Of Property 

Any act or neglect of any person other than you 

beyond your direction or control will not affect this 

insurance. 

The breach of any SECTION I condition at any one 

or more described premises will not affect coverage at any described premises where, at the time 

of loss, the breach of condition does not exist. 

b. Mortgageholders 

(1) The term “mortgageholder” includes trustee. 

(2) We will pay for covered loss to buildings or 

structures to each mortgageholder shown in 

the Declarations in their order of precedence, 

as interests may appear. 

(3) The mortgageholder has the right to receive 

loss payment even if the mortgageholder has 

started foreclosure or similar action on the 

building or structure. 

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

(4) If we deny your claim because of your acts or 

because you have failed to comply with the 

terms of this policy, the mortgageholder will 

still have the right to receive loss payment if 

the mortgageholder: 

(a) Pays any premium due under this policy at 

our request if you have failed to do so; 

(b) Submits a signed, sworn proof of loss within 60 days after receiving notice from us of 

your failure to do so; and 

(c) Has notified us of any change in ownership, occupancy or substantial change in 

risk known to the mortgageholder. 

All of the terms of this policy will then apply directly to the mortgageholder. 

(5) If we pay the mortgageholder for any loss and 

deny payment to you because of your acts or 

because you have failed to comply with the 

terms of this policy: 

(a) The mortgageholder’s rights under the 

mortgage will be transferred to us to the 

extent of the amount we pay; and 

(b) The mortgageholder’s right to recover the 

full amount of the mortgageholder’s claim 

will not be impaired. 

At our option, we may pay to the mortgageholder the whole principal on the mortgage plus any 

accrued interest. In this event, your mortgage 

and note will be transferred to us and you will 

pay your remaining mortgage debt to us. 

(6) If we cancel this policy, we will give written notice to the mortgageholder at least: 

(a) 10 days before the effective date of cancellation if we cancel for your nonpayment 

of premium; or 

(b) 30 days before the effective date of cancellation if we cancel for any other reason. 

(7) If we elect not to renew this policy, we will give 

written notice to the mortgageholder at least 10 

days before the expiration date of this policy. 

c. No Benefit To Bailee 

No person or organization, other than you, having 

custody of Covered Property will benefit from this 

insurance. 

d. Policy Period, Coverage Territory 

Under SECTION I — PROPERTY: 

(1) We cover loss commencing: 

(a) During the policy period shown in the Declarations; and 

(b) Within the coverage territory or, with respect 

to property in transit, while it is between 

points in the coverage territory. 

(2) The coverage territory is: 

(a) The United States of America (including its 

territories and possessions); 

(b) Puerto Rico; and 

(c) Canada. 

SECTION I — DEFINITIONS 

1. “Accident” means direct physical loss as follows: 

a. Mechanical breakdown, including rupture or bursting caused by centrifugal force; 

b. Artificially generated electric current, including 

electric arcing, that disturbs electrical devices, appliances or wires; 

c. Explosion of steam boilers, steam pipes, steam 

engines or steam turbines owned or leased by you, 

or operated under your control; 

d. Loss to steam boilers, steam pipes, steam engines 

or steam turbines caused by any condition or event 

inside such equipment; or 

e. Loss to hot water boilers or other water heating 

equipment, air conditioning units or refrigerating 

units caused by any condition or event inside such 

boilers or equipment. 

“Accident” does not mean any defect, programming error, programming limitation, computer virus, malicious 

code, loss of “electronic data”, loss of access, loss of 

use, loss of functionality or other condition within or involving “electronic data” of any kind. 

2. “Computer” means: 

a. Programmable electronic equipment that is used to 

store, retrieve and process data; and 

b. Associated peripheral equipment that provides 

communication, including input and output functions such as printing and auxiliary functions such 

as data transmission. 

“Computer” does not include those used to operate 

production type machinery or equipment. 

3. “Counterfeit money” means an imitation of “money” 

that is intended to deceive and to be taken as genuine. 

4. “Covered equipment” means Covered Property built to 

operate under vacuum or pressure, other than weight 

of contents, or used for the generation, transmission or 

utilization of energy. 

None of the following is “covered equipment”: 

a. Structure, foundation, cabinet, compartment or air 

supported structure or building; 

b. Insulating or refractory material; 

c. Sewer piping, underground vessels or piping, or 

piping forming a part of a sprinkler system; 

d. Water piping other than boiler feedwater piping, 

boiler condensate return piping or water piping 

forming a part of a refrigerating or air conditioning 

system; 

e. Vehicle, aircraft, floating vessel or any equipment 

mounted on such vehicle, aircraft or floating vessel. 

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©, Copyright, State Farm Mutual Automobile Insurance Company, 2008 

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

However, any property that is stationary, permanently installed at a described premises and that receives electrical power from an external power 

supplier will not be considered a vehicle, aircraft or 

floating vessel; 

f. Satellite, spacecraft or any equipment mounted on 

a satellite or spacecraft; 

g. Dragline, excavation equipment or construction 

equipment; or 

h. Equipment manufactured by you for sale. 

5. “Electronic data” means information, facts or computer 

programs stored as or on, created or used on, or 

transmitted to or from computer software (including 

systems and applications software), on hard or floppy 

disks, CD-ROMs, tapes, drives, cells, data processing 

devices or any other repositories of computer software 

which are used with electronically controlled equipment. 

The term computer programs, referred to in the foregoing description of electronic data, means a set of related 

electronic instructions which direct the operations and 

functions of a “computer” or device connected to it, 

which enable the “computer” or device to receive, process, store, retrieve or send data. 

6. “Executive officer” means a person holding any of the 

officer positions created by your charter, constitution, 

by-laws or any other similar governing document.

7. “Fungi” means any type or form of fungus, including mold 

or mildew, and any mycotoxins, spores, scents or byproducts produced or released by fungi. 

8. “Hazardous substance” means any substance that is 

hazardous to health or has been declared to be hazardous to health by a governmental agency. 

9. “Manager” means a person serving in a directorial capacity for a limited liability company. 

10. “Member” means an owner of a limited liability company represented by its membership interest, who also 

may serve as a “manager”. 

11. “Money” means: 

a. Currency, coins and bank notes in current use and 

having a face value; and 

b. Travelers checks, register checks and money orders held for sale to the public. 

12. “Operations” means your business activities occurring 

at the described premises. 

13. “Perishable goods” means personal property maintained under controlled conditions for its preservation, 

and susceptible to loss or damage if the controlled 

conditions change. 

14. “Pollutants” means any solid, liquid, gaseous or thermal irritant or contaminant, including smoke, vapor, 

soot, fumes, acids, alkalis, chemicals and waste. 

Waste also includes materials to be recycled, reconditioned or reclaimed. 

15. “Securities” means negotiable and non-negotiable instruments or contracts representing either “money” or 

other property and includes: 

a. Tokens, tickets, revenue and other stamps (whether represented by actual stamps or unused value 

in a meter) in current use; and 

b. Evidences of debt issued in connection with credit or 

charge cards, which cards are not issued by you; 

but does not include “money”. 

16. “Sinkhole collapse” means the sudden sinking or collapse of land into underground empty spaces created 

by the action of water on limestone or dolomite. This 

cause of loss does not include: 

a. The cost of filling sinkholes; or 

b. Sinking or collapse of land into man-made underground cavities. 

17. “Specified causes of loss” means the following: 

Fire; lightning; explosion; windstorm or hail; smoke; aircraft or vehicles; riot or civil commotion; vandalism; leakage from fire extinguishing equipment; “sinkhole 

collapse”; “volcanic action”; falling objects; weight of 

snow, ice or sleet; water damage. 

a. Falling objects does not include loss to: 

(1) Personal property in the open; or 

(2) The interior of a building or structure, or property inside a building or structure, unless the 

roof, an outside wall, or outside building glass 

of the building or structure is first damaged by 

a falling object. 

b. Water damage, meaning only abrupt accidental 

discharge or leakage of water or steam as the direct result of the abrupt rupture of any part of a 

plumbing system or appliance (other than a sump 

system including its related equipment and parts) 

containing water or steam. 

18. “State Farm Companies” means one or more of the 

following: 

a. State Farm Mutual Automobile Insurance Company; 

b. State Farm Fire and Casualty Company; and 

c. Subsidiaries or affiliates of either a. or b. above.

19. “Stock” means merchandise held in storage or for sale, 

raw materials and in-process or finished goods, including supplies used in their packing or shipping. 

20. “Utility service equipment” means non-covered property, of a type that otherwise meets the definition of “covered equipment”, that is owned by a utility, landlord, 

landlord’s utility or other supplier who provides you with 

any of the following services: 

a. Internet access, wide area network, telecommunications or data transmission services; 

b. Water, electricity, natural gas, steam, heating, air 

conditioning, refrigeration or compressed air services; or 

c. Waste disposal services; 

to the described premises. 

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

21. “Valuable papers and records” means inscribed, printed or written: 

a. Documents; 

b. Manuscripts; and 

c. Records; 

including abstracts, books, deeds, drawings, films, 

maps or mortgages. 

But “valuable papers and records” does not mean 

“money”, “securities” or “electronic data”. 

22. “Volcanic action” means accidental direct physical loss 

resulting from the eruption of a volcano when the loss 

is caused by: 

a. Airborne volcanic blast or airborne shock waves; 

b. Ash, dust or particulate matter; or 

c. Lava flow. 

We will not pay for the cost to remove ash, dust or particulate matter that does not cause accidental direct 

physical loss to Covered Property.

SECTION II — LIABILITY 

Coverage L – Business Liability 

1. When a Limit Of Insurance is shown in the Declarations for Coverage L – Business Liability, we will pay 

those sums that the insured becomes legally obligated 

to pay as damages because of “bodily injury”, “property 

damage” or “personal and advertising injury” to which 

this insurance applies. We will have the right and duty 

to defend the insured by counsel of our choice against 

any “suit” seeking those damages. However, we will 

have no duty to defend the insured against any “suit” 

seeking damages for “bodily injury”, “property damage” 

or “personal and advertising injury”, to which this insurance does not apply. We may, at our discretion, investigate any “occurrence” or offense and settle any claim 

or “suit” with or without the insured’s consent, for any 

reason and at any time. But: 

a. The amount we will pay for damages is limited as described in SECTION II — LIMITS OF INSURANCE; 

and 

b. Our right and duty to defend end when we have 

used up the applicable Limit Of Insurance in the 

payment of judgments or settlements or medical 

expenses. 

No other obligation or liability to pay sums or perform 

acts or services is covered unless explicitly provided 

for under Section II – Supplementary Payments. 

2. This insurance applies: 

a. To “bodily injury” and “property damage” only if: 

(1) The “bodily injury” or “property damage” is 

caused by an “occurrence” that takes place in 

the “coverage territory”; 

(2) The “bodily injury” or “property damage” occurs 

during the policy period; and 

(3) Prior to the policy period, no insured listed 

under Paragraph 1.a. of SECTION II — WHO 

IS AN INSURED and no “employee” authorized by you to give or 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 listed insured or authorized “employee” knew, prior to the policy 

period, that the “bodily injury” or “property 

damage” occurred, then any continuation, 

change or resumption of such “bodily injury” or 

“property damage” during or after the policy 

period will be deemed to have been known before the policy period. 

b. To “personal and advertising injury” caused by an 

offense arising out of your business, but only if the 

offense was committed in the “coverage territory” 

during the policy period. 

3. “Bodily injury” or “property damage” which occurs during 

the policy period and was not, prior to the policy period, 

known to have occurred by any insured listed under 

Paragraph 1.a. of SECTION II — WHO IS AN INSURED or any “employee” authorized by you to give or 

receive notice of an “occurrence” or claim, includes any 

continuation, change or resumption of “bodily injury” or 

“property damage” after the end of the policy period. 

4. “Bodily injury” or “property damage” will be deemed to 

have been known to have occurred at the earliest time 

when any insured listed under Paragraph 1.a. of SECTION II — WHO IS AN INSURED or any “employee” 

authorized by you to give or receive notice of an “occurrence” or claim: 

a. Reports all, or any part, of the “bodily injury” or 

“property damage” to us or any other insurer; 

b. Receives a written or verbal demand or claim for 

damages, or other relief, because of the “bodily injury” or “property damage”; or 

c. Becomes aware by any other means that “bodily 

injury” or “property damage” has occurred or has 

begun to occur. 

5. Damages because of “bodily injury” include damages 

claimed by any person or organization for care, loss of 

services or death resulting at any time from the “bodily 

injury”. 

Section II – Supplementary Payments 

1. We will pay, with respect to any claim we investigate or 

settle, or any “suit” against an insured we defend: 

a. All expenses we incur. 

b. Up to $250 for cost of bail bonds required because 

of accidents or traffic law violations arising out of 

the use of any vehicle to which Coverage L – 

Business Liability for “bodily injury” applies. We 

do not have to furnish these bonds. 

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c. The premium for bonds to release attachments, but 

only for bond premiums within our Limit Of Insurance. We do not have to furnish, finance, arrange 

for, guarantee or collateralize these bonds. 

d. All reasonable expenses incurred by the insured at 

our request to assist us in the investigation or defense of the claim or “suit”, including actual loss of 

earnings up to $250 a day because of time off from 

work. 

e. Any cost taxed against the insured in the “suit”, except for attorney fees and expenses. 

f. Prejudgment interest awarded against the insured 

on that part of the judgment we pay. If we make an 

offer to pay the Limit Of Insurance, we will not pay 

any prejudgment interest based on that period of 

time after the offer. 

g. All interest on the full amount of any judgment that 

accrues after entry of the judgment and before we 

have paid, offered to pay, or deposited in court the 

part of the judgment that is within our Limit Of Insurance. 

These payments will not reduce the Limit Of Insurance. 

2. If we defend an insured against a “suit” and an indemnitee of the insured is also named as a party to the 

“suit”, we will defend that indemnitee if all of the following conditions are met: 

a. The “suit” against the indemnitee seeks damages 

for which the insured has assumed the liability of 

the indemnitee in a contract or agreement that is 

an “insured contract”; 

b. This insurance applies to such liability assumed by 

the insured; 

c. The obligation to defend, or the cost of the defense 

of, that indemnitee, has also been assumed by the 

insured in the same “insured contract”; 

d. The allegations in the “suit” and the information we 

know about the “occurrence” or offense are such that 

no conflict appears to exist between the interests of 

the insured and the interests of the indemnitee; 

e. The indemnitee and the insured ask us to conduct 

and control the defense of that indemnitee against 

such “suit” and agree that we can assign the same 

counsel to defend the insured and the indemnitee; 

and 

f. The indemnitee: 

(1) Agrees in writing to: 

(a) Cooperate with us in the investigation, settlement or defense of the “suit”; 

(b) Immediately send us copies of any demands, notices, summonses or legal papers received in connection with the “suit”; 

(c) Notify any other insurer whose coverage is 

available to the indemnitee; and 

(d) Cooperate with us with respect to coordinating other applicable insurance available 

to the indemnitee; and 

(2) Provides us with written authorization to: 

(a) Obtain records and other information related to the “suit”; and 

(b) Conduct and control the defense of the indemnitee in such “suit”. 

3. So long as the conditions in Paragraph 2. above are 

met, attorneys’ fees incurred by us in the defense of 

that indemnitee, necessary litigation expenses incurred 

by us and necessary litigation expenses incurred by 

the indemnitee at our request will be paid as Supplementary Payments. Notwithstanding the provisions of 

Paragraph 2.b. in Section II – Exclusions, such payments will not be deemed to be damages for “bodily injury” and “property damage” and will not reduce the 

Limits Of Insurance. 

Our obligation to defend an insured’s indemnitee and 

to pay for attorneys’ fees and necessary litigation expenses as Supplementary Payments ends when: 

a. We have used up the applicable Limit Of Insurance 

in the payment of judgments or settlements; or 

b. The conditions set forth above, or the terms of the 

agreement described in Paragraph 2.f. above are 

no longer met. 

Section II – Exclusions 

Applicable to Coverage L – Business Liability, this insurance does not apply to: 

1. Expected Or Intended Injury 

a. “Bodily injury” or “property damage” expected or intended to cause harm as would be expected by a 

reasonable person; or 

b. “Bodily injury” or “property damage” which is the 

result of willful and malicious, or criminal acts of 

the insured. 

This exclusion does not apply to “bodily injury” or 

“property damage” resulting from the use of reasonable 

force to protect persons or property. 

2. Contractual Liability 

“Bodily injury” or “property damage” for which the insured is obligated to pay damages by reason of the 

assumption of liability in a contract or agreement. This 

exclusion does not apply to liability for damages: 

a. That the insured would have in the absence of the 

contract or agreement; or 

b. Assumed in a contract or agreement that is an “insured contract”, provided the “bodily injury” or 

“property damage” occurs subsequent to the execution of the contract or agreement. Solely for the purposes of liability assumed in an “insured contract”, 

reasonable attorney fees and necessary litigation 

expenses incurred by or for a party other than an insured are deemed to be damages because of “bodily injury” or “property damage”, provided: 

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(1) Liability to such party for, or for the cost of, that 

party’s defense has also been assumed in the 

same “insured contract”; and 

(2) Such attorney fees and litigation expenses are 

for defense of that party against a civil or alternative dispute resolution proceeding in which 

damages to which this insurance applies are 

alleged. 

3. Liquor Liability 

a. “Bodily injury” or “property damage” for which any 

insured may be held liable by reason of: 

(1) Causing or contributing to the intoxication of 

any person; 

(2) The furnishing of alcoholic beverages to a person under the legal drinking age or under the 

influence of alcohol; or 

(3) Any statute, ordinance or regulation relating to 

the sale, gift, distribution or use of alcoholic 

beverages. 

b. This exclusion applies only if you: 

(1) Manufacture, sell or distribute alcoholic beverages; or 

(2) Serve or furnish alcoholic beverages: 

(a) As a regular part of your business; 

(b) For a charge whether or not such activity: 

i. Requires a license; or 

ii. Is for the purpose of financial gain or 

livelihood; or 

(c) Without a charge, if a license is required 

for such activity. 

4. Workers’ Compensation And Similar Laws 

Any obligation of the insured under a workers’ compensation, disability benefits or unemployment compensation law or any similar law. 

5. Employer’s Liability 

a. “Bodily injury” to: 

(1) An “employee” or a former “employee” of the 

insured arising out of and in the course of: 

(a) Employment by the insured; or 

(b) Performing duties related to the conduct of 

the insured’s business; or 

(2) The spouse, child, parent, brother or sister of 

that “employee” as a consequence of Paragraph (1) above. 

b. This exclusion applies: 

(1) Whether the insured may be liable as an employer or in any other capacity; and 

(2) To any obligation to share damages with or repay someone else who must pay damages because of the injury. 

This exclusion does not apply to liability assumed 

by the insured under an “insured contract”. 

6. Employment-Related Practices 

a. “Bodily injury” or “personal and advertising injury” 

to: 

(1) A person arising out of any: 

(a) Refusal to employ that person; 

(b) Termination of that person’s employment; 

or 

(c) Employment-related practices, policies, acts 

or omissions, such as coercion, demotion, 

evaluation, malicious prosecution, reassignment, discipline, defamation, harassment, humiliation or discrimination directed 

at that person; or 

(2) The spouse, child, parent, brother or sister of 

that person as a consequence of Paragraph 

(1) above. 

b. This exclusion applies: 

(1) Whether the insured may be liable as an employer or in any other capacity; 

(2) To any obligation to share damages with or repay someone else who must pay damages because of the injury; or 

(3) Whether the injury causing event described in 

Paragraph a.(1) above occurs before employment, during employment or after employment 

of that person. 

7. Pollution 

a. “Bodily injury” or “property damage” arising out of 

the actual, alleged or threatened discharge, dispersal, seepage, migration, spill, release or escape 

of “pollutants”: 

(1) At or from any premises, site or location which 

is or was at any time owned or occupied by, or 

rented or loaned to, any insured. However, this 

subparagraph does not apply to: 

(a) “Bodily injury” if sustained within a building 

and caused by smoke, fumes, vapor or 

soot produced by or originating from 

equipment that is used to heat, cool or dehumidify the building, or equipment that is 

used to heat water for personal use, by the 

building’s occupants or their guests; 

(b) “Bodily injury” or “property damage” for 

which you may be held liable, if you are a 

contractor and the owner or lessee of such 

premises, site or location has been added 

to your policy as an additional insured with 

respect to your ongoing operations performed for that additional insured at that 

premises, site or location and such premises, site or location is not and never was 

owned or occupied by, or rented or loaned 

to, any insured, other than that additional 

insured; or 

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(c) “Bodily injury” or “property damage” arising 

out of heat, smoke or fumes from a “hostile 

fire”; 

(2) At or from any premises, site or location which 

is or was at any time used by or for any insured or others for the handling, storage, disposal, processing or treatment of waste; 

(3) Which are or were at any time transported, 

handled, stored, treated, disposed of, or processed as waste by or for: 

(a) Any insured; or 

(b) Any person or organization for whom you 

may be legally responsible; or 

(4) At or from any premises, site or location on 

which any insured or any contractors or subcontractors working directly or indirectly on any 

insured’s behalf are performing operations if 

the “pollutants” are brought on or to the premises, site or location in connection with such 

operations by such insured, contractor or subcontractor. However, this subparagraph does 

not apply to: 

(a) “Bodily injury” or “property damage” arising 

out of the escape of fuels, lubricants or other operating fluids which are needed to perform the normal electrical, hydraulic or 

mechanical functions necessary for the operation of “mobile equipment” or its parts, if 

such fuels, lubricants or other operating fluids escape from a vehicle part designed to 

hold, store or receive them. This exception 

does not apply if the “bodily injury” or “property damage” arises out of the intentional 

discharge, dispersal or release of the fuels, 

lubricants or other operating fluids, or if 

such fuels, lubricants or other operating fluids are brought on or to the premises, site 

or location with the intent that they be discharged, dispersed or released as part of 

the operations being performed by such insured, contractor or subcontractor; 

(b) “Bodily injury” or “property damage” sustained within a building and caused by the 

release of gases, fumes or vapors from 

materials brought into that building in connection with operations being performed 

by you or on your behalf by a contractor or 

subcontractor; or 

(c) “Bodily injury” or “property damage” arising 

out of heat, smoke or fumes from a “hostile 

fire”. 

(5) At or from any premises, site or location on 

which any insured or any contractors or subcontractors working directly or indirectly on any 

insured’s behalf are performing operations if 

the operations are to test for, monitor, clean 

up, remove, contain, treat, detoxify or neutralize, or in any way respond to, or assess the effects of, “pollutants”. 

b. Any loss, cost or expense arising out of any: 

(1) Request, demand, order or statutory or regulatory requirement that any insured or others test 

for, monitor, clean up, remove, contain, treat, 

detoxify or neutralize, or in any way respond 

to, or assess the effects of, “pollutants”; or 

(2) Claim or “suit” by or on behalf of a governmental authority for damages because of testing 

for, monitoring, cleaning up, removing, containing, treating, detoxifying or neutralizing, or in 

any way responding to, or assessing the effects of, “pollutants”. 

However, this paragraph does not apply to liability 

for damages because of “property damage” that 

the insured would have in the absence of such request, demand, order or statutory or regulatory requirement or such claim or “suit” by or on behalf of 

a governmental authority. 

8. Aircraft, Auto Or Watercraft 

“Bodily injury” or “property damage” arising out of the 

ownership, maintenance, use or entrustment to others 

of any aircraft, “auto” or watercraft owned or operated 

by or rented or loaned to any insured. Use also includes operation and “loading or unloading”. 

This exclusion applies even if the claims allege negligence or other wrongdoing in the supervision, hiring, 

employment, training or monitoring of others by an insured, if the “occurrence” which caused the “bodily injury” or “property damage” involved the ownership, 

maintenance, use or entrustment to others of any aircraft, “auto” or watercraft that is owned or operated by 

or rented or loaned to any insured. 

This exclusion does not apply to: 

a. A watercraft while ashore on premises you own or 

rent; 

b. A watercraft you do not own that is: 

(1) Less than 51 feet long; and 

(2) Not being used to carry persons or property for 

a charge; 

c. Parking an “auto” on, or on the ways next to, premises you own or rent, provided the “auto” is not 

owned by or rented or loaned to you or any insured; 

d. Liability assumed under any “insured contract” for 

the ownership, maintenance or use of aircraft or 

watercraft; 

e. “Bodily injury” or “property damage” arising out of 

the use of any “non-owned auto” in your business 

by any person; or 

f. “Bodily injury” or “property damage” arising out of: 

(1) The operation of machinery or equipment that is 

attached to, or part of, a land vehicle that would 

qualify under the definition of “mobile equipment” if it were not subject to a compulsory or 

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financial responsibility law or other motor vehicle insurance or motor vehicle registration law 

where it is licensed or principally garaged; or 

(2) The operation of any of the following machinery or equipment: 

(a) Cherry pickers and similar devices mounted on automobile or truck chassis and 

used to raise or lower workers; and 

(b) Air compressors, pumps and generators, 

including spraying, welding, building cleaning, geophysical exploration, lighting and 

well servicing equipment. 

9. Mobile Equipment 

“Bodily injury” or “property damage” arising out of: 

a. The transportation of “mobile equipment” by an 

“auto” owned or operated by or rented or loaned to 

any insured; or 

b. The use of “mobile equipment” in, or while in practice 

for, or while being prepared for, any prearranged racing, speed, demolition or stunting activity or contest. 

10. War 

“Bodily injury”, “property damage” or “personal and advertising injury”, however caused, arising, directly or 

indirectly, out of: 

a. War, including undeclared civil war; 

b. Warlike action by a military force, including action 

in hindering or defending against an actual or expected attack, by any government, sovereign or 

other authority using military personnel or other 

agents; or 

c. Insurrection, rebellion, revolution, usurped power, 

or action taken by government authority in hindering or defending against any of these. 

11. Professional Services Or Treatment 

“Bodily injury”, “property damage” or “personal and advertising injury” arising out of the rendering or failure to 

render any professional service or treatment. This includes but is not limited to: 

a. Legal, accounting or advertising services; 

b. Preparing, approving, or failing to prepare or approve maps, shop drawings, opinions, reports, surveys, field orders, change orders or drawings and 

specifications; 

c. Supervisory, inspection, architectural or engineering activities; 

d. Treatment, advice or instruction of any medical, 

surgical, dental, x-ray or nursing services; 

e. Treatment, advice or instruction of any health or 

therapeutic services; 

f. Any service, treatment, advice or instruction for the 

purpose of appearance or skin enhancement, hair 

removal or replacement or personal grooming; 

g. Optometry or optical or hearing aid services including 

the prescribing, preparation, fitting, demonstration or 

distribution of ophthalmic lenses and similar products 

or hearing aid devices; 

h. Body piercing services; 

i. Services in connection with the practice of pharmacy; 

j. Handling, embalming, disposal, burial, cremation 

or disinterment of dead bodies; and 

k. Veterinary services or treatments. 

This exclusion applies even if the claims allege negligence or other wrongdoing in the supervision, hiring, 

employment, training or monitoring of others by an insured, if the “occurrence” which caused the “bodily injury” or “property damage”, or the offense which 

caused the “personal and advertising injury”, involved 

the rendering or failure to render of any professional 

service. 

12. Damage To Property 

“Property damage” to: 

a. Property you own, rent or occupy, including any costs 

or expenses incurred by you, or any other person, 

organization or entity, for repair, replacement, enhancement, restoration or maintenance of such 

property for any reason, including prevention of injury 

to a person or damage to another’s property; 

b. Premises you sell, give away or abandon, if the 

“property damage” arises out of any part of those 

premises; 

c. Property loaned to you; 

d. Personal property in the care, custody or control of 

any insured; 

e. That particular part of real property on which you or 

any contractor or subcontractor working directly or 

indirectly on your behalf is performing operations, if 

the “property damage” arises out of those operations; 

f. That particular part of any property that must be 

restored, repaired or replaced because “your work” 

was incorrectly performed on it; or 

g. Covered Property under SECTION I of this policy 

that is held in common by members of a condominium or association. 

Paragraph b. of this exclusion does not apply if the 

premises are “your work” and were never occupied, 

rented or held for rental by you. 

Paragraphs c., d., e., and f. of this exclusion do not 

apply to liability assumed under a sidetrack agreement. 

Paragraph f. of this exclusion does not apply to “property damage” included in the “products-completed operations hazard”. 

13. Damage To Your Product 

“Property damage” to “your product” arising out of it or 

any part of it. 

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14. Damage To Your Work 

“Property damage” to “your work” arising out of it or 

any part of it and included in the “products-completed 

operations hazard”. 

15. Damage To Impaired Property Or Property Not 

Physically Injured 

“Property damage” to “impaired property” or property 

that has not been physically injured, arising out of: 

a. A defect, deficiency, inadequacy or dangerous 

condition in “your product” or “your work”; or 

b. A delay or failure by you or anyone acting on your 

behalf to perform a contract or agreement in accordance with its terms. 

This exclusion does not apply to the loss of use of other property arising out of sudden and accidental physical injury to “your product” or “your work” after it has 

been put to its intended use. 

16. Recall Of Products, Work Or Impaired Property 

Damages claimed for any loss, cost or expense incurred by you or others for the loss of use, withdrawal, 

recall, inspection, repair, replacement, adjustment, removal or disposal of: 

a. “Your product”; 

b. “Your work”; or 

c. “Impaired property”; 

if such product, work or property is withdrawn or recalled from the market or from use by any person or 

organization because of a known or suspected defect, 

deficiency, inadequacy or dangerous condition in it. 

17. Personal And Advertising Injury 

a. Caused by or at the direction of the insured with 

the knowledge that the act would violate the rights 

of another and would inflict “personal and advertising injury”; 

b. Arising out of oral or written publication of material, 

if done by or at the direction of the insured with 

knowledge of its falsity; 

c. Arising out of oral or written publication of material 

whose first publication took place before the beginning of the policy period; 

d. For which the insured has assumed liability in a 

contract or agreement. This exclusion does not 

apply to liability for damages that the insured would 

have in the absence of the contract or agreement; 

e. Arising out of a breach of contract, except an implied contract to use another’s advertising idea in 

your “advertisement”; 

f. Arising out of the failure of goods, products or services to conform with any statement of quality or 

performance made in your “advertisement”; 

g. Arising out of the wrong description of the price of 

goods, products or services stated in your “advertisement”; 

h. Committed by an insured whose business is: 

(1) Advertising, broadcasting, publishing or telecasting; 

(2) Designing or determining content of web-sites 

for others; or 

(3) An Internet search, access, content or service 

provider. 

However, this exclusion does not apply to Paragraphs 18.a., b. and c. of “personal and advertising injury” under SECTION II — DEFINITIONS. 

For the purposes of this exclusion, the placing of 

frames, borders or links, or advertising, for you or 

others anywhere on the Internet, by itself, is not 

considered the business of advertising, broadcasting, publishing or telecasting; 

i. Arising out of the actual, alleged or threatened discharge, dispersal, seepage, migration, release or 

escape of “pollutants” at any time; 

j. With respect to any loss, cost or expense arising 

out of any: 

(1) Request, demand, order, or statutory or regulatory requirement that any insured or others test 

for, monitor, clean-up, remove, contain, treat, 

detoxify or neutralize or in any way respond to, 

or assess the effects of, “pollutants”; or 

(2) Claim or “suit” by or on behalf of a governmental authority for damages because of testing 

for, monitoring, cleaning up, removing, containing, treating, detoxifying or neutralizing or in 

any way responding to, or assessing the effects of, “pollutants”; 

k. Arising out of an electronic chatroom or bulletin 

board the insured hosts, owns or over which the 

insured exercises control; 

l. Arising out of the infringement of copyright, patent, 

trademark, trade secret or other intellectual property 

rights. Under this exclusion, such other intellectual 

property rights do not include the use of another's 

advertising idea in your "advertisement". 

However, this exclusion does not apply to infringement, in your “advertisement”, of copyright, 

trade dress or slogan; 

m. Arising out of the unauthorized use of another’s name 

or product in your e-mail address, domain name or 

metatags, or any other similar tactics to mislead another’s potential customers; or 

n. Arising out of a criminal act committed by or at the 

direction of the insured. 

18. Electronic Data 

Damages arising out of the loss of, loss of use of, 

damage to, corruption of, inability to access, or inability 

to manipulate electronic data. 

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As used in this exclusion, electronic data means information, facts or computer programs stored as or on, 

created or used on, or transmitted to or from computer 

software (including systems and applications software), 

on hard or floppy disks, CD-ROMs, tapes, drives, cells, 

data processing devices or any other repositories of 

computer software which are used with electronically 

controlled equipment. The term computer programs, referred to in the foregoing description of electronic data, 

means a set of related electronic instructions which direct the operations and functions of a computer or device connected to it, which enable the computer or 

device to receive, process, store, retrieve or send data. 

19. Recording And Distribution Of Material In Violation 

Of Law 

“Bodily injury”, “property damage”, or “personal and advertising injury” arising directly or indirectly out of any 

action or omission that violates or is alleged to violate: 

a. The Telephone Consumer Protection Act (TCPA), including any amendment of or addition to such law; 

b. The CAN-SPAM Act of 2003, including any 

amendment of or addition to such law; 

c. The Fair Credit Reporting Act (FCRA), and any 

amendment of or addition to such law, including 

the Fair and Accurate Credit Transaction Act 

(FACTA); or 

d. Any federal, state or local statute, ordinance or 

regulation, other than the TCPA, CAN-SPAM Act 

of 2003 or FCRA and their amendments and additions, that addresses, prohibits, or limits the printing, dissemination, disposal, collecting, recording, 

sending, transmitting, communicating or distribution of material or information. 

20. Fungi 

a. “Bodily injury”, “property damage”, or “personal and 

advertising injury” arising out of the actual, alleged or 

threatened inhalation of, ingestion of, contact with, 

exposure to, existence of, or presence of any “fungi”: 

(1) At or from any premises, site or location which 

is or was at any time owned or occupied by, or 

rented or loaned to, any insured; or 

(2) At or from any premises, site or location on 

which any insured or any contractor or subcontractor working directly or indirectly on behalf 

of any insured is or was at any time performing 

operations; 

b. Any loss, cost or expense arising out of any: 

(1) Request, demand, order or statutory or regulatory requirement that any insured or others test 

for, monitor, clean up, remove, contain, treat, 

detoxify, neutralize, remediate or dispose of or 

in any way respond to or assess the effects of 

“fungi”; or 

(2) Claim or “suit” for damages because of testing for, monitoring, cleaning up, removing, 

containing, treating, detoxifying, neutralizing, 

remediating or disposing of, or in any way responding to or assessing the effects of “fungi”. 

This exclusion does not apply to any “fungi” that are, 

are on, or are contained in, a good or product intended 

for bodily consumption. 

SECTION II — DAMAGE TO PREMISES RENTED TO YOU 

Subject to the terms and conditions of SECTION II of this 

coverage form, unless otherwise indicated, we will also pay 

those sums that the insured becomes legally obligated to 

pay as damages because of “property damage” to premises rented to you or occupied by you with the owner’s permission. This insurance applies if such “property damage” 

arises out of any insured loss in SECTION I of this coverage form. 

However, we will not pay for loss to property described in 

Paragraphs 3., 4. and 5. under Coverage B – Business 

Personal Property of SECTION I — PROPERTY. 

The most we will pay for damages because of “property 

damage” to these premises arising out of any one event, or 

a series or combination of such events, is the separate 

Damage To Premises Rented To You limit as described in 

SECTION II — LIMITS OF INSURANCE. This limit applies 

per “occurrence”. 

Our limit will not be increased regardless of the number of: 

1. Insureds; 

2. Premises insured; 

3. Claims made or “suits” brought; or 

4. Persons or organizations making claims or bringing “suits”. 

Section II – Exclusions 3., 4., 5., 6., 7., 8., 9., 10., 12., 13., 

14., 15., and 16. do not apply to this coverage. 

For the purpose of determining our limit for this coverage, 

all “property damage” arising out of a continuous or repeated exposure to substantially the same general conditions shall be considered as arising out of one 

“occurrence”. 

SECTION II — MEDICAL EXPENSES 

Coverage M – Medical Expenses 

1. When a Limit Of Insurance is shown in the Declarations for Coverage M – Medical Expenses we will pay 

medical expenses as described below for “bodily injury” caused by an accident: 

a. On premises you own or rent; 

b. On ways next to premises you own or rent; or 

c. Because of your operations; 

provided that: 

a. The accident takes place in the “coverage territory” 

and during the policy period; 

b. The expenses are incurred and reported to us within one year of the date of the accident; 

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c. The injured person submits to examination, at our 

expense, by physicians of our choice as often as 

we reasonably require; and 

d. The injured person, or, when appropriate, someone acting on behalf of that person: 

(1) Gives us written proof of claim, under oath if 

required, as soon as practicable; 

(2) Executes authorization to allow us to obtain 

copies of medical reports or other records; and 

(3) Submits to us all information we need to comply with state or federal law. 

2. We will make these payments regardless of fault. The 

amount we will pay for medical expenses is limited as 

described in SECTION II — LIMITS OF INSURANCE. 

We will pay reasonable expenses for: 

a. First aid administered at the time of an accident; 

b. Necessary medical, surgical, x-ray and dental services, including prosthetic devices; and 

c. Necessary ambulance, hospital, professional nursing and funeral services. 

Coverage M – Medical Expenses Exclusions 

Under Coverage M – Medical Expenses, we will not pay 

expenses for “bodily injury”: 

1. Excluded under Section II – Exclusions applicable to 

Coverage L – Business Liability. 

2. To any insured, except “volunteer workers”. 

3. To a person hired to do work for or on behalf of any 

insured or a tenant of any insured. 

4. To a person injured on that part of the premises you 

own or rent that the person normally occupies. 

5. To a person, whether or not an “employee” of any insured, if benefits for the “bodily injury” are payable or 

must be provided under a workers’ compensation or 

disability benefits law or a similar law. 

6. To a person injured while practicing, instructing or participating in any physical exercises or games, sports or 

athletic contests. 

7. Included within the “products-completed operations 

hazard”. 

8. Arising out of the use of any “non-owned auto”. 

SECTION II — NUCLEAR ENERGY LIABILITY EXCLUSION 

Applicable to both Coverage L – Business Liability and 

Coverage M – Medical Expenses, this insurance does not 

apply: 

1. Under Coverage L – Business Liability, to “bodily 

injury” or “property damage”: 

a. With respect to which an insured under the policy 

is also an insured under a nuclear energy liability 

policy issued by the Nuclear Energy Liability Insurance Association, Mutual Atomic Energy Liability 

Underwriters or Nuclear Insurance Association of 

Canada, or would be an insured under any such 

policy but for its termination upon exhaustion of its 

Limit Of Liability; or 

b. Resulting from the “hazardous properties” of “nuclear material” and with respect to which: 

(1) Any person or organization is required to maintain financial protection pursuant to the Atomic 

Energy Act of 1954, or any law amendatory 

thereof; or 

(2) The insured is, or had this policy not been issued would be, entitled to indemnity from the 

United States of America, or any agency thereof, under any agreement entered into by the 

United States of America, or any agency thereof, with any person or organization. 

2. Under Coverage M – Medical Expenses, to expenses 

incurred with respect to “bodily injury” resulting from 

the “hazardous properties” of “nuclear material” and 

arising out of the operation of a “nuclear facility” by any 

person or organization. 

3. Under Coverage L – Business Liability, to “bodily 

injury” or “property damage” resulting from the “hazardous properties” of the “nuclear material” if: 

a. The “nuclear material”: 

(1) Is at any “nuclear facility” owned by, or operated by or on behalf of, an insured; or 

(2) Has been discharged or dispersed therefrom; 

b. The “nuclear material” is contained in “spent fuel” 

or “waste” at any time possessed, handled, used, 

processed, stored, transported or disposed of by or 

on behalf of an insured; or 

c. The “bodily injury” or “property damage” arises out 

of the furnishing by an insured of services, materials, parts or equipment in connection with the 

planning, construction, maintenance, operation or 

use of any “nuclear facility”; but if such facility is located within the United States of America, its territories or possessions or Canada, this Paragraph c.

applies only to “property damage” to such “nuclear 

facility” and any property thereat. 

4. As used in this exclusion: 

a. “By-product material” has the meaning given it in 

the Atomic Energy Act of 1954 or in any law 

amendatory thereof; 

b. “Hazardous properties” include radioactive, toxic or 

explosive properties; 

c. “Nuclear facility” means: 

(1) Any “nuclear reactor”; 

(2) Any equipment or device designed or used for: 

(a) Separating the isotopes of uranium or plutonium; 

(b) Processing or utilizing “spent fuel”; or 

(c) Handling, processing or packaging “waste”; 

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(3) Any equipment or device used for the processing, fabricating or alloying of “special nuclear material” if at any time the total amount of 

such material in the custody of the insured at 

the premises where such equipment or device 

is located consists of or contains more than 25 

grams of plutonium or uranium 233 or any 

combination thereof, or more than 250 grams 

of uranium 235; 

(4) Any structure, basin, excavation, premises or 

place prepared or used for the storage or disposal of “waste”; 

and includes the site on which any of the foregoing 

is located, all operations conducted on such site 

and all premises used for such operations; 

d. “Nuclear material” means “source material”, “special nuclear material” or “by-product material”; 

e. “Nuclear reactor” means any apparatus designed or 

used to sustain nuclear fission in a self-supporting 

chain reaction or to contain a critical mass of fissionable material; 

f. “Property damage” includes all forms of radioactive 

contamination of property; 

g. “Source material” has the meaning given it in the 

Atomic Energy Act of 1954 or in any law amendatory thereof; 

h. “Special nuclear material” has the meaning given it 

in the Atomic Energy Act of 1954 or in any law 

amendatory thereof; 

i. “Spent fuel” means any fuel element or fuel component, solid or liquid, which has been used or exposed to radiation in a “nuclear reactor”; 

j. “Waste” means any waste material: 

(1) Containing “by-product material” other than the 

tailings or wastes produced by the extraction 

or concentration of uranium or thorium from 

any ore processed primarily for its “source material” content; and 

(2) Resulting from the operation by any person or 

organization of any “nuclear facility” included 

under Paragraphs (1) and (2) of the definition 

of “nuclear facility”. 

SECTION II — WHO IS AN INSURED 

1. Except for liability arising out of the use of “non-owned 

autos”:

a. If you are designated in the Declarations as: 

(1) An individual, you and your spouse are insureds, but only with respect to the conduct of 

a business, other than described in (2) through 

(5) below, of which you are the sole owner. 

(2) A partnership or joint venture, you are an insured. Your members, your partners and their 

spouses are also insureds, but only with respect to the conduct of your business. 

(3) A limited liability company, you are an insured. 

Your “members” are also insureds, but only 

with respect to the conduct of your business. 

Your “managers” are insureds, but only with 

respect to their duties as your “managers”. 

(4) An organization other than a partnership, joint 

venture or limited liability company, you are an 

insured. Your “executive officers” and directors 

are insureds, but only with respect to their duties as your officers or directors. Your stockholders are also insureds, but only with respect 

to their liability as stockholders. 

(5) A trust, you are an insured. Any executor, administrator, trustee, beneficiary or custodian of 

your estate or living trust are also insureds, but 

only while acting within the scope of their duties as such. 

b. Each of the following is also an insured: 

(1) Your “volunteer workers” only while performing 

duties related to the conduct of your business, 

or your “employees”, other than either your 

“executive officers” (if you are an organization 

other than a partnership, joint venture or limited liability company) or your “managers” (if 

you are a limited liability company), but only for 

acts within the scope of their employment by 

you or while performing duties related to the 

conduct of your business. However, none of 

these “employees” or “volunteer workers” are 

insureds for: 

(a) “Bodily injury” or “personal and advertising 

injury”: 

i. To you, to your partners or members 

(if you are a partnership or joint venture), to your “members” (if you are a 

limited liability company), to a co-

“employee” while in the course of his 

or her employment or performing duties related to the conduct of your 

business, or to your other “volunteer 

workers” while performing duties related to the conduct of your business; 

ii. To the spouse, child, parent, brother or 

sister of that co-“employee” or “volunteer worker” as a consequence of Paragraph i. above; or 

iii. For which there is any obligation to 

share damages with or repay someone else who must pay damages because of the injury described in 

Paragraph i. or ii. above. 

(b) “Property damage” to property: 

i. Owned, occupied or used by, 

ii. Rented to, in the care, custody or control of, or over which physical control is 

being exercised for any purpose by 

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you, any of your “employees”, “volunteer 

workers”, any partner or member (if you 

are a partnership or joint venture), or any 

“member” (if you are a limited liability company). 

(2) Any person (other than your “employee” or “volunteer worker”), or any organization while acting as your real estate manager. 

(3) Any person or organization having proper temporary custody of your property if you die, but 

only: 

(a) With respect to liability arising out of the 

maintenance or use of that property; and 

(b) Until your legal representative has been 

appointed. 

(4) Your legal representative if you die, but only 

with respect to duties as such. That representative will have all your rights and duties 

under this policy. 

c. With respect to “mobile equipment” registered in 

your name under any motor vehicle registration law, 

any person is an insured while driving such equipment along a public highway with your permission. 

Any other person or organization responsible for the 

conduct of such person is also an insured but only 

with respect to liability arising out of the operation of 

the equipment and only if no other insurance of any 

kind is available to that person or organization for 

this liability. However, no person or organization is 

an insured with respect to: 

(1) “Bodily injury” to a person employed by the 

same employer of the person driving the 

equipment; or 

(2) “Property damage” to property owned by, rented to, in the charge of or occupied by you or 

the employer of any person who is an insured 

under this provision. 

d. Any organization you newly acquire or form, other 

than a partnership, joint venture or limited liability 

company, and over which you maintain ownership 

or majority interest, will qualify as a Named Insured 

if there is no other similar insurance available to 

that organization. However: 

(1) Coverage under this provision is afforded only 

until the 90th day after you acquire or form the 

organization or the end of the policy period, 

whichever is earlier; 

(2) There is no coverage for: 

(a) “Bodily injury” or “property damage” that 

occurred; or 

(b) “Personal and advertising injury” arising 

out of an offense committed; 

before you acquired or formed the organization. 

2. Only with respect to liability arising out of the use of 

“non-owned autos”: 

a. Each of the following is an insured to the extent set 

forth below: 

(1) You; 

(2) Any partner or “executive officer” of yours but 

only while such “non-owned auto” is being 

used in your business; or 

(3) Any “employee” of yours but only while such 

“non-owned auto” is being used in your business; and 

(4) Any other person or organization, but only for 

their liability because of acts or omissions of 

an insured under (1), (2) or (3) above. 

b. None of the following is an insured: 

(1) “Employees” with respect to “bodily injury” to 

any fellow “employee” of the insured arising 

out of and in the course of the fellow “employee's” employment or while performing duties 

related to the conduct of your business; 

(2) Any: 

(a) Partner or “executive officer” for any “auto” 

owned by or registered to such partner or 

officer or a member of his or her household; or 

(b) “Employee” for any “auto” owned by or 

registered to such “employee” or a member of his or her household; 

(3) Any person while employed in or otherwise 

engaged in duties in connection with a business of selling, repairing, servicing, storing, or 

parking “autos” unless that business is yours; 

or 

(4) The owner of a “non-owned auto” or any agent 

or “employee” of any such owner. 

No person or organization is an insured with respect to the 

conduct of any current or past partnership, joint venture or 

limited liability company that is not shown as a Named Insured in the Declarations. 

SECTION II — LIMITS OF INSURANCE 

1. The Limits Of Insurance of SECTION II — LIABILITY

shown in the Declarations and the rules below fix the 

most we will pay regardless of the number of: 

a. Insureds; 

b. Premises insured; 

c. Claims made or “suits” brought; or 

d. Persons or organizations making claims or bringing 

“suits”. 

2. The most we will pay for the sum of all damages because of all: 

a. “Bodily injury”, “property damage” and medical expenses arising out of any one “occurrence”; and 

b. “Personal and advertising injury” sustained by any 

one person or organization; 

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is the Coverage L – Business Liability limit shown 

in the Declarations for the policy period during which 

the injury or damage first occurs and no additional 

limits or coverage will be available for the “occurrence” or offense under any additional years that this 

policy remains in force. But the most we will pay for 

all medical expenses because of “bodily injury” sustained by any one person is the Coverage M – Medical Expenses limit shown in the Declarations. 

This limit does not apply to “property damage” to a 

premises while rented to you or occupied by you 

with the permission of the owner. 

3. The most we will pay for damages because of “property damage” to a premises while rented to you or occupied by you with the permission of the owner is the 

Damage To Premises Rented To You limit shown in 

the Declarations.

4. Aggregate Limits 

The most we will pay for: 

a. All “bodily injury” and “property damage” that is 

included in the “products-completed operations 

hazard” is the Products And Completed Operations 

Aggregate limit shown in the Declarations. 

b. All: 

(1) “Bodily injury” and “property damage” except 

damages because of “bodily injury” or “property damage” included in the “productscompleted operations hazard”; 

(2) Medical expenses; and 

(3) “Personal and advertising injury” caused by offenses committed; 

is the General Aggregate limit shown in the Declarations. 

This General Aggregate limit applies separately to 

each premises not on the same or connecting lots. 

However, this General Aggregate limit does not 

apply to “property damage” payable under SECTION II — DAMAGE TO PREMISES RENTED TO 

YOU coverage. 

The Limits Of Insurance of SECTION II — LIABILITY apply separately to each consecutive annual period and to 

any remaining period of less than 12 months, starting with 

the beginning of the policy period shown in the Declarations, unless the policy period is extended after issuance 

for an additional period of less than 12 months. In that 

case, the additional period will be deemed part of the last 

preceding period for purposes of determining the Limits Of 

Insurance. 

SECTION II — DEDUCTIBLES 

If a deductible amount is shown in the Declarations under 

SECTION II — DEDUCTIBLES our obligation to pay 

damages on your behalf under the “property damage” 

liability coverage provided by Coverage L – Business 

Liability applies only to the amount of damages in excess of the deductible shown in the Declarations under 

SECTION II — DEDUCTIBLES. This deductible amount 

applies per claim to all damages because of “property 

damage” sustained by one person or organization as the 

result of any one “occurrence”. This deductible will apply 

only to the amount of the loss and will not reduce our Limit 

Of Insurance. 

However, the deductible does not apply to “property damage” payable under SECTION II — DAMAGE TO PREMISES RENTED TO YOU coverage. 

We may pay any part or all of the deductible amount to 

settle any claim or “suit”. Upon notification of the action 

taken, you will promptly reimburse us for that part of the 

deductible amount that has been paid by us. 

SECTION II — GENERAL CONDITIONS 

1. Bankruptcy 

Bankruptcy or insolvency of the insured or of the insured’s estate will not relieve us of our obligations under this policy. 

2. Financial Responsibility Laws 

a. When this policy is certified as proof of financial responsibility for the future under the provisions of 

any motor vehicle financial responsibility law, the 

insurance provided by the policy for “bodily injury” 

liability and “property damage” liability will comply 

with the provisions of the law to the extent of the 

coverage and limits of insurance required by that 

law. 

b. With respect to “mobile equipment” to which this 

insurance applies, we will provide any liability, uninsured motorists, underinsured motorists, no-fault 

or other coverage required by any motor vehicle 

law. We will provide the required limits for those 

coverages. 

3. Duties In The Event Of Occurrence, Offense, Claim 

Or Suit 

a. You must see to it that we are notified as soon as 

practicable of an “occurrence” or an offense which 

may result in a claim. To the extent possible, notice 

should include: 

(1) How, when and where the “occurrence” or offense took place; 

(2) The names and addresses of any injured persons and witnesses; and 

(3) The nature and location of any injury or damage arising out of the “occurrence” or offense. 

b. If a claim is made or “suit” is brought against any 

insured, you must: 

(1) Immediately record the specifics of the claim or 

“suit” and the date received; and 

(2) Notify us as soon as practicable. 

You must see to it that we receive written notice of 

the claim or “suit” as soon as practicable. 

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c. You and any other involved insured must: 

(1) Immediately send us copies of any demands, 

notices, summonses or legal papers received 

in connection with the claim or “suit”; 

(2) Authorize us to obtain records and other information; 

(3) Cooperate with us in the investigation, or settlement of the claim or defense against the 

“suit”; and 

(4) Assist us, upon our request, in the enforcement of any right against any person or organization that may be liable to the insured 

because of injury or damage to which this insurance may also apply. 

d. No insured will, except at that insured’s own cost, 

voluntarily make a payment, assume any obligation, or incur any expense, other than for first aid, 

without our consent. 

4. Legal Action Against Us 

No person or organization has a right under this policy: 

a. To join us as a party or otherwise bring us into a 

“suit” asking for damages from an insured; or 

b. To sue us on this policy unless all of its terms have 

been fully complied with. 

A person or organization may sue us to recover on an 

agreed settlement or on a final judgment against an insured obtained after an actual trial; but we will not be liable for damages that are not payable under the terms of 

this policy or that are in excess of the applicable Limit Of 

Insurance. An agreed settlement means a settlement and 

release of liability signed by us, the insured and the 

claimant or the claimant’s legal representative. 

5. Separation Of Insureds 

Except with respect to the SECTION II — LIMITS OF 

INSURANCE, and any rights or duties specifically assigned in this policy to the first Named Insured, this insurance applies: 

a. As if each Named Insured were the only Named 

Insured; and 

b. Separately to each insured against whom claim is 

made or “suit” is brought. 

SECTION II — DEFINITIONS 

1. “Advertisement” means a notice that is broadcast or 

published to the general public or specific market segments about your goods, products or services for the 

purpose of attracting customers or supporters. For the 

purposes of this definition: 

a. Notices that are published include material placed 

on the Internet or on similar electronic means of 

communication; and 

b. Regarding web-sites, only that part of a web-site 

that is about your goods, products or services for 

the purposes of attracting customers or supporters 

is considered an advertisement. 

2. “Auto” means a land motor vehicle, trailer or semitrailer 

designed for travel on public roads, including any attached machinery or equipment. 

However, “auto” does not include “mobile equipment”. 

3. “Bodily injury” means bodily injury, sickness or disease 

sustained by a person, including death resulting from 

any of these at any time. “Bodily injury” includes mental 

anguish or other mental injury caused by the “bodily injury”. 

4. “Coverage territory” means: 

a. The United States of America (including its territories and possessions), Puerto Rico and Canada; 

b. International waters or airspace, but only if the injury or damage occurs in the course of travel or 

transportation between any places included in Paragraph a. above; or 

c. All other parts of the world if the injury or damage 

arises out of: 

(1) Goods or products made or sold by you in the 

territory described in Paragraph a. above; 

(2) The activities of a person whose home is in the 

territory described in Paragraph a. above, but 

is away for a short time on your business; or 

(3) “Personal and advertising injury” offenses that 

take place through the Internet or similar electronic means of communication; 

provided the insured’s responsibility to pay damages is determined in a “suit” on the merits in the 

territory described in Paragraph a. above or in a 

settlement we agree to. 

5. “Employee” includes a “leased worker”. “Employee” 

does not include a “temporary worker”. 

6. “Executive officer” means a person holding any of the 

officer positions created by your charter, constitution, 

by-laws or any other similar governing document. 

7. “Fungi” means any type or form of fungus, including 

mold or mildew, and any mycotoxins, spores, scents or 

by-products produced or released by “fungi”. 

8. “Hostile fire” means one which becomes uncontrollable 

or breaks out from where it was intended to be. 

9. “Impaired property” means tangible property, other 

than “your product” or “your work”, that cannot be used 

or is less useful because: 

a. It incorporates “your product” or “your work” that is 

known or thought to be defective, deficient, inadequate or dangerous; or 

b. You have failed to fulfill the terms of a contract or 

agreement; 

if such property can be restored to use by the repair, 

replacement, adjustment or removal of “your product” 

or “your work” or your fulfilling the terms of the contract 

or agreement. 

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10. “Insured contract” means: 

a. A contract for a lease of premises. However, that 

portion of the contract for a lease of premises that 

indemnifies any person or organization for “property damage” to premises while rented to you or 

temporarily occupied by you with permission of the 

owner is not an “insured contract”; 

b. A sidetrack agreement; 

c. Any easement or license agreement, except in 

connection with construction or demolition operations on or within 50 feet of a railroad; 

d. An obligation, as required by ordinance, to indemnify a municipality, except in connection with work 

for a municipality; 

e. An elevator maintenance agreement; 

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 of another party to pay for 

“bodily injury” or “property damage” to a third person or organization. Tort liability means a liability 

that would be imposed by law in the absence of 

any contract or agreement. 

Paragraph f. does not include that part of any contract or agreement: 

(1) That indemnifies a railroad for “bodily injury” or 

“property damage” arising out of construction 

or demolition operations, within 50 feet of any 

railroad property and affecting any railroad 

bridge or trestle, tracks, road beds, tunnel, underpass or crossing; 

(2) That indemnifies an architect, engineer or surveyor for injury or damage arising out of: 

(a) Preparing, approving or failing to prepare 

or approve maps, drawings, opinions, reports, surveys, change orders, designs or 

specifications; or 

(b) Giving directions or instructions, or failing 

to give them, if that is the primary cause of 

the injury or damage; or 

(3) Under which the insured, if an architect, engineer or surveyor, assumes liability for an injury 

or damage arising out of the insured’s rendering or failure to render professional services, 

including those listed in Paragraph (2) above 

and supervisory, inspection or engineering 

services. 

11. “Leased worker” means a person leased to you by a 

labor leasing firm under an agreement between you 

and the labor leasing firm, to perform duties related to 

the conduct of your business. “Leased worker” does 

not include a “temporary worker”. 

12. “Loading or unloading” means the handling of property: 

a. After it is moved from the place where it is accepted for movement into or onto an aircraft, watercraft 

or “auto”; 

b. While it 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 is finally delivered; 

but “loading or unloading” does not include the movement of property by means of a mechanical device, 

other than a hand truck, that is not attached to the aircraft, watercraft or “auto”. 

13. “Manager” means a person serving in a directorial capacity for a limited liability company. 

14. “Member” means an owner of a limited liability company represented by its membership interest, who also 

may serve as a “manager”. 

15. “Mobile equipment” means any of the following types of 

land vehicles, including any attached machinery or 

equipment: 

a. Bulldozers, farm machinery, forklifts and other vehicles designed for use principally off public roads; 

b. Vehicles maintained for use solely on or next to 

premises you own or rent; 

c. Vehicles that travel on crawler treads; 

d. Vehicles, whether self-propelled or not, on which 

are permanently mounted: 

(1) Power cranes, shovels, loaders, diggers or 

drills; or 

(2) Road construction or resurfacing equipment 

such as graders, scrapers or rollers; 

e. Vehicles not described in Paragraph a., b., c. or d.

above that are not self-propelled and are maintained primarily to provide mobility to permanently 

attached equipment of the following types: 

(1) Air compressors, pumps and generators, including spraying, welding, building cleaning, 

geophysical exploration, lighting and well servicing equipment; or 

(2) Cherry pickers and similar devices used to 

raise or lower workers; 

f. Vehicles not described in Paragraph a., b., c. or d.

above maintained primarily for purposes other than 

the transportation of persons or cargo. 

However, self-propelled vehicles with the following 

types of permanently attached equipment are not 

“mobile equipment” but will be considered “autos”: 

(1) Equipment designed primarily for: 

(a) Snow removal; 

(b) Road maintenance, but not construction or 

resurfacing; or 

(c) Street cleaning; 

(2) Cherry pickers and similar devices mounted on 

automobile or truck chassis and used to raise 

or lower workers; and 

(3) Air compressors, pumps and generators, including spraying, welding, building cleaning, 

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geophysical exploration, lighting and well servicing equipment. 

16. “Non-owned auto” means any “auto” you do not own, 

lease, hire, rent or borrow which is used in connection 

with your business. This includes “autos” owned by or 

registered to your “employees”, partners or members 

(if you are a partnership or joint venture), “members” or 

“managers” (if you are a limited liability company), “executive officers” (if you are an organization other than a 

partnership, joint venture or limited liability company), 

or members of their households, but only while used in 

your business or your personal affairs. 

17. “Occurrence” means an accident, including continuous 

or repeated exposure to substantially the same general 

harmful conditions. 

18. “Personal and advertising injury” means injury, including consequential “bodily injury”, arising out of one or 

more of the following offenses: 

a. False arrest, detention or imprisonment; 

b. Malicious prosecution; 

c. The wrongful eviction from, wrongful entry into, or 

invasion of the right of privacy, of a room, dwelling 

or premises that a person occupies, committed by 

or on behalf of its owner, landlord or lessor; 

d. Oral or written publication, in any manner, of material that slanders or libels a person or organization 

or disparages a person’s or organization’s goods, 

products or services; 

e. Oral or written publication, in any manner, of material that violates a person’s right of privacy; 

f. The use of another’s advertising idea in your “advertisement”; or 

g. Infringing upon another’s copyright, trade dress or 

slogan in your “advertisement”. 

19. “Pollutants” mean any solid, liquid, gaseous or thermal irritant or contaminant, including smoke, vapor, 

soot, fumes, acids, alkalis, chemicals and waste. 

Waste includes materials to be recycled, reconditioned 

or reclaimed. 

20. “Products-completed operations hazard”: 

a. Includes all “bodily injury” and “property damage” 

occurring away from premises you own or rent and 

arising out of “your product” or “your work” except: 

(1) Products that are still in your physical possession; or 

(2) Work that has not yet been completed or 

abandoned. However, “your work” will be 

deemed completed at the earliest of the following times: 

(a) When all of the work called for in your contract has been completed. 

(b) When all of the work to be done at the job 

site has been completed if your contract 

calls for work at more than one job site. 

(c) When that part of the work done at the job 

site has been put to its intended use by 

any other person or organization other 

than another contractor or subcontractor 

working on the same project. 

Work that may need service, maintenance, correction, repair or replacement, but which is otherwise complete, will be treated as completed. 

The “bodily injury” or “property damage” must occur away from premises you own or rent, unless 

your business includes the selling, handling or distribution of “your product” for consumption on 

premises you own or rent. 

b. Does not include “bodily injury” or “property damage” arising out of: 

(1) The transportation of property, unless the injury or damage arises out of a condition in or on 

a vehicle not owned or operated by you, and 

that condition was created by the “loading or 

unloading” of that vehicle by any insured; or 

(2) The existence of tools, uninstalled equipment 

or abandoned or unused materials. 

21. “Property damage” means: 

a. Physical injury to tangible property, including all resulting loss of use of that property. All such loss of 

use shall be deemed to occur at the time of the 

physical injury that caused it; or 

b. Loss of use of tangible property that is not physically injured or destroyed, provided such loss of 

use is caused by physical injury to or destruction of 

other tangible property. All such loss of use shall 

be deemed to occur at the time of the “occurrence” 

that caused it. 

For the purposes of this insurance, electronic data is 

not tangible property. 

As used in this definition, electronic data means information, facts or computer programs stored as or on, 

created or used on, or transmitted to or from computer 

software (including systems and applications software), 

on hard or floppy disks, CD-ROMs, tapes, drives, cells, 

data processing devices or any other repositories of 

computer software which are used with electronically 

controlled equipment. The term computer programs, referred to in the foregoing description of electronic data, 

means a set of related electronic instructions which direct the operations and functions of a computer or device connected to it, which enable the computer or 

device to receive, process, store, retrieve or send data. 

22. “State Farm Companies” means one or more of the 

following: 

a. State Farm Mutual Automobile Insurance Company; 

b. State Farm Fire and Casualty Company; and 

c. Subsidiaries or affiliates of either a. or b. above. 

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23. “Suit“ means a civil proceeding in which damages because of “bodily injury“, “property damage“, or “personal and advertising injury“ to which this insurance apapplies are alleged. “Suit“ includes: 

a. An arbitration proceeding in which such damages 

are claimed and to which the insured must submit 

or does submit with our consent; or 

b. Any other alternative dispute resolution proceeding 

in which such damages are claimed and to which 

the insured submits with our consent. 

24. “Temporary worker“ means a person who is furnished to: 

a. You to substitute for a permanent “employee“ on 

leave; or 

b. Meet seasonal or short-term workload conditions. 

25. “Volunteer worker“ means a person who is not your 

“employee“, and who donates his or her work and acts 

at the direction of and within the scope of duties determined by you, and is not paid a fee, salary or other 

compensation by you or anyone else for their work performed for you. 

26. “Your product“: 

a. Means: 

(1) Any goods or products, other than real property, manufactured, sold, handled, distributed or 

disposed of by: 

(a) You; 

(b) Others trading under your name; or 

(c) A person or organization whose business 

or assets you have acquired; and 

(2) Containers (other than vehicles), materials, 

parts or equipment furnished in connection 

with such goods or products. 

b. Includes: 

(1) Warranties or representations made at any 

time with respect to the fitness, quality, durability, performance or use of “your product“; and 

(2) The providing of or failure to provide warnings 

or instructions. 

c. Does not include vending machines or other property rented to or located for the use of others but 

not sold. 

27. “Your work“: 

a. Means: 

(1) Work or operations performed by you or on 

your behalf; and 

(2) Materials, parts or equipment furnished in connection with such work or operations. 

b. Includes: 

(1) Warranties or representations made at any 

time with respect to the fitness, quality, durability, performance or use of “your work“; and 

(2) The providing of or failure to provide warnings 

or instructions. 

SECTION I AND SECTION II — COMMON POLICY CONDITIONS 

1. Changes 

a. This policy contains all the agreements between 

you and us concerning the insurance afforded. The 

first Named Insured shown in the Declarations is 

authorized to make changes in the terms of this 

policy with our consent. This policy’s terms can be 

amended or waived only by endorsement issued 

by us and made a part of this policy. 

b. We may change the Named Insured’s policy address 

as shown in the Declarations and in our records to 

the most recent address provided to us by: 

(1) You; or 

(2) The United States Postal Service. 

2. Concealment, Misrepresentation Or Fraud 

This policy is void in any case of fraud by you as it relates to this policy at any time. It is also void if you or 

any other insured, at any time, intentionally conceal or 

misrepresent a material fact concerning: 

a. This policy; 

b. The Covered Property; 

c. Your interest in the Covered Property; or 

d. A claim under this policy. 

3. Examination Of Your Books And Records 

We may examine and audit your books and records as 

they relate to this policy at any time during the policy 

period and up to three years afterward. 

4. Inspections And Surveys 

a. We have the right to: 

(1) Make inspections and surveys at any time; 

(2) Give you reports on the conditions we find; and 

(3) Recommend changes. 

b. We are not obligated to make any inspections, surveys, reports or recommendations and any such 

actions we do undertake relate only to insurability 

and the premiums to be charged. We do not make 

safety inspections. We do not undertake to perform 

the duty of any person or organization to provide 

for the health or safety of workers or the public. 

And we do not warrant that conditions: 

(1) Are safe and healthful; or 

(2) Comply with laws, regulations, codes or standards. 

c. Paragraphs a. and b. of this condition apply not 

only to us, but also to any rating, advisory, rate 

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service or similar organization which makes insurance inspections, surveys, reports or recommendations. 

d. Paragraph b. of this condition does not apply to 

any inspections, surveys, reports or recommendations we may make relative to certification, under 

state or municipal statutes, ordinances or regulations, of boilers, pressure vessels or elevators. 

5. Insurance Under Two Or More Coverages 

If two or more of this policy’s coverages apply to the 

same loss or damage, we will not pay more than the 

actual amount of the loss or damage. 

6. Liberalization 

If we adopt any revision that would broaden the coverage under this policy without additional premium within 

45 days prior to or during the policy period, the broadened coverage will immediately apply to this policy. 

7. Other Insurance 

SECTION I — PROPERTY

If there is other insurance covering the same loss, we 

will pay only for the amount of covered loss in excess 

of the amount due from that other insurance, whether 

you can collect on it or not. However, this insurance is 

primary and does not contribute with any other insurance for a covered loss to property as described in 

Coverage A – Buildings that you do not own and 

which is your insurance responsibility according to the 

terms of a lease or rental agreement. We will decide if 

our payment for loss will be made to you or to the 

owner of the property. But we will not pay more than 

the applicable Limit Of Insurance of SECTION I — 

PROPERTY coverages shown in the Declarations. 

SECTION II — LIABILITY 

If other valid and collectible insurance is available to 

the insured for a loss we cover under SECTION II —

LIABILITY, our obligations are limited as follows: 

a. Primary Insurance 

This insurance is primary except when Paragraph 

b. below applies. If this insurance is primary, our 

obligations are not affected unless any of the other 

insurance is also primary. Then, we will share with 

all that other insurance by the method described in 

Paragraph c. below. 

b. Excess Insurance 

(1) This insurance is excess over: 

(a) Any of the other insurance, whether primary, 

excess, contingent or on any other basis: 

(i) That insures for accidental direct physical loss; or 

(ii) If the loss arises out of the maintenance 

or use of aircraft, "autos" or watercraft 

to the extent not subject to paragraph 8.

of Section II – Exclusions. 

(b) Any other primary insurance available to 

you covering liability for damages arising 

out of the premises or operations, or the 

products and completed operations, for 

which you have been added as an additional insured by attachment of an endorsement. 

(2) When this insurance is excess, we will have no 

duty under Coverage L – Business Liability

to defend the insured against any "suit" if any 

other insurer has a duty to defend the insured 

against that "suit". If no other insurer defends, 

we will undertake to do so, but we will be entitled to the insured's rights against all those 

other insurers. 

(3) When this insurance is excess over other insurance, we will pay only our share of the 

amount of the loss, if any, that exceeds the 

sum of: 

(a) The total amount that all such other insurance would pay for the loss in the absence 

of this insurance; and 

(b) The total of all deductible and self-insured 

amounts under all that other insurance. 

(4) We will share the remaining loss, if any, with 

any other insurance that is not described in 

this Excess Insurance provision and was not 

bought specifically to apply in excess of the 

SECTION II — LIABILITY Limits Of Insurance 

shown in the Declarations. 

c. Method Of Sharing 

If all of the other insurance permits contribution by 

equal shares, we will follow this method also. Under this approach, each insurer contributes equal 

amounts until it has paid its applicable limit of insurance or none of the loss remains, whichever 

comes first. 

If any of the other insurance does not permit contribution by equal shares, we will contribute by limits. Under this method, each insurer's share is 

based on the ratio of its applicable limit of insurance to the total applicable limits of insurance of all 

insurers. 

d. Other Insurance Provided By Us

The total insurance provided under Coverage L – 

Business Liability and any other policy written by 

us will not exceed the highest Limit Of Insurance 

applicable under any one of the policies written by 

us. 

8. Premiums 

a. The first Named Insured shown in the Declarations: 

(1) Is responsible for the payment of all premiums; 

and 

(2) Will be the payee for any return premiums we 

pay. 

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b. The premium shown in the Declarations was 

computed based on rates in effect at the time the 

policy was issued. On each renewal, continuation 

or anniversary of the effective date of this policy, 

we will compute the premium in accordance with 

our rates and rules then in effect. 

c. Unless otherwise provided by an alternative payment plan in effect with “State Farm Companies“, 

you may continue this policy in force by paying a 

continuation premium for each successive oneyear period. The premium must be: 

(1) Paid to us prior to the anniversary date; and 

(2) Determined in accordance with Paragraph b.

above. 

Our forms then in effect will apply. If you do not 

pay the continuation premium, this policy will expire on the first anniversary date that we have not 

received the premium. 

d. Undeclared exposures or change in your business 

operation, acquisition or use of premises may occur during the policy period that are not shown in 

the Declarations. If so, we may require an additional premium. That premium will be determined in 

accordance with our rates and rules then in effect. 

e. The premium for this policy may vary based upon 

the purchase of other insurance from the “State 

Farm Companies”. 

9. Premium Audit 

a. This policy is subject to audit if a premium designated as an estimated premium is shown in the 

Declarations. We will compute the final premium 

due when we determine your actual exposures. 

b. Premium shown in this policy as estimated premium 

is a deposit premium only. At the close of each audit 

period we will compute the earned premium for that 

period and send notice to the first Named Insured. 

The due date for audit premiums is the date shown 

as the due date on the bill. If the sum of the estimated and audit premiums paid for the policy period 

is greater than the earned premium, we will return 

the excess to the first Named Insured. 

c. The first Named Insured must keep records of the 

information we need for premium computation, and 

send us copies at such times as we may request. 

10. Transfer Of Rights Of Recovery Against Others To Us 

a. Applicable to SECTION I — PROPERTY: 

If any person or organization to or for whom we 

make payment under this policy has rights to recover damages from another, those rights are 

transferred to us to the extent of our payment. That 

person or organization must do everything necessary to secure our rights and must do nothing after 

loss to impair them. But you may waive your rights 

against another party in writing: 

(1) Prior to a loss to your Covered Property. 

(2) After a loss to your Covered Property only if, at 

time of loss, that party is one of the following: 

(a) Someone insured by this insurance; 

(b) A business firm: 

i. Owned or controlled by you; or 

ii. That owns or controls you; or 

(c) Your tenant. 

You may also accept the usual bills of lading or 

shipping receipts limiting the liability of carriers. 

This will not restrict your insurance. 

b. Applicable to SECTION II — LIABILITY: 

If the insured has rights to recover all or part of any 

payment we have made under this policy, those 

rights are transferred to us. The insured must do 

nothing after loss to impair them. At our request, 

the insured will bring “suit“ or transfer those rights 

to us and help us enforce them. This condition 

does not apply to Medical Expenses Coverage. 

11. Transfer Of Your Rights And Duties Under This Policy 

Your rights and duties under this policy may not be 

transferred without our written consent except in the 

case of death of an individual Named Insured. 

If you die, your rights and duties will be transferred to 

your legal representative but only while acting within 

the scope of duties as your legal representative. Until 

your legal representative is appointed, anyone having 

proper temporary custody of your property will have 

your rights and duties but only with respect to that 

property. 

12. Conformity To State Law 

When a provision of this policy is in conflict with the 

applicable law of the state in which this policy is issued, the law of the state will apply. 

13. Severability

If any provision of this policy is held invalid or unenforceable by a court that has jurisdiction, then: 

a. Such provision will remain in full force to the extent 

not held invalid or unenforceable; and 

b. All other provisions of this policy will remain valid 

and enforceable. 

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