Face/Front Page

Insured’s Name: 4-UP CORP

DBA: MIAMI LAKES PERFUMES

Policy # FSF15744042 001 UMR# (Lloyd’s policies only): 

Policy Dates: From: 03/10/2020 To: 03/10/2021

Surplus Lines Agent’s Name: Scott H. Smith

Surplus Lines Agent’s Address: 20 Church St Suite 1500, Hartford, CT 06103

Surplus Lines Agent’s License #: A247664

Producing Agent’s Name: Butler Buckley Deets Inc

Producing Agent’s Physical Address: 6161 Blue Lagoon Drive Suite 420 Miami, FL 33126

“THIS INSURANCE IS ISSUED PURSUANT TO THE FLORIDA SURPLUS LINES LAW. PERSONS 

INSURED BY SURPLUS LINES CARRIERS DO NOT HAVE THE PROTECTION OF THE FLORIDA 

INSURANCE GUARANTY ACT TO THE EXTENT OF ANY RIGHT OF RECOVERY FOR THE 

OBLIGATION OF AN INSOLVENT UNLICENSED INSURER.” 

“SURPLUS LINES INSURERS’ POLICY RATES AND FORMS ARE NOT 

APPROVED BY ANY FLORIDA REGULATORY AGENCY.” 

 

Policy Premium: $3,706.00 Policy Fee: $200.00

Inspection Fee: $100.00 Service Fee: $4.01

Tax: $200.30 Citizen’s Assessment: $0.00

EMPA Surcharge: $4.00 FHCF Assessment: $0.00

Surplus Lines Agent’s Countersignature:

 

 

o “THIS POLICY CONTAINS A SEPARATE DEDUCTIBLE FOR 

HURRICANE OR WIND LOSSES, WHICH MAY RESULT IN HIGH OUTOF-POCKET EXPENSES TO YOU.”

o “THIS POLICY CONTAINS A CO-PAY PROVISION THAT MAY 

RESULT IN HIGH OUT-OF-POCKET EXPENSES TO YOU.”

Case 1:20-cv-22049-KMM Document 1-3 Entered on FLSD Docket 05/15/2020 Page 1 of 90
NOTHING HEREIN CONTAINED SHALL BE HELD TO VARY, ALTER, WAIVE OR EXTEND ANY OF THE

TERMS, CONDITIONS, OR LIMITATIONS OF THE POLICY TO WHICH THIS NOTICE IS ATTACHED

OTHER THAN AS STATED ABOVE.

SL-24680 (Ed. 10/09) Page 1 of 1

Westchester Surplus Lines Insurance Company

Insured:

4-UP CORP

MIAMI LAKES PERFUMES

Attached To Policy No.: FSF15744042 001

Effective Date: 03-10-2020

FLORIDA SURPLUS LINES NOTIFICATION

THIS INSURANCE IS ISSUED PURSUANT TO THE FLORIDA SURPLUS

LINES LAW. PERSONS INSURED BY SURPLUS LINES CARRIERS DO

NOT HAVE THE PROTECTION OF THE FLORIDA INSURANCE GUARANTY

ACT TO THE EXTENT OF ANY RIGHT OF RECOVERY FOR THE

OBLIGATION OF AN INSOLVENT UNLICENSED INSURER.

SURPLUS LINES INSURERS' POLICY RATES AND FORMS ARE NOT

APPROVED BY ANY FLORIDA REGULATORY AGENCY.

Case 1:20-cv-22049-KMM Document 1-3 Entered on FLSD Docket 05/15/2020 Page 2 of 90
Policy Declarations

SLPD (03/08) © Chubb. 2016. All rights reserved. Page 1 of 1

Policy No. FSF15744042 001 Renewal of: New

NAMED INSURED & MAILING ADDRESS

4-UP CORP

DBA:MIAMI LAKES PERFUMES

18600 NW 87th Ave, Suite 102

Hialeah, FL 33015

POLICY PERIOD

When Coverage Begins: 03/10/2020 12:01 A. M. Local Time At Named Insured's Address

When Coverage Ends: 03/10/2021 12:01 A. M. Local Time At Named Insured's Address

INSURING COMPANY Producer's Name & Address:

Westchester Surplus Lines

Insurance Company (A.M. Best

Rating A++)

R-T SPECIALTY LLC

500 WEST MONROE STREET 28TH FLOOR

CHICAGO

IL

60661

Producer No.:Z05533

ATTACHED FORMS

Authorization Information

Dated: 03/10/2020

 

 Authorized Representative

THIS INSURANCE IS ISSUED PURSUANT TO THE FLORIDA SURPLUS

LINES LAW. PERSONS INSURED BY SURPLUS LINES CARRIERS DO NOT

HAVE THE PROTECTION OF THE FLORIDA INSURANCE GUARANTY ACT

TO THE EXTENT OF ANY RIGHT OF RECOVERY FOR THE OBLIGATION

OF AN INSOLVENT UNLICENSED INSURER.

SURPLUS LINES INSURERS' POLICY RATES AND FORMS ARE NOT

APPROVED BY ANY FLORIDA REGULATORY AGENCY.

Case 1:20-cv-22049-KMM Document 1-3 Entered on FLSD Docket 05/15/2020 Page 3 of 90
CHUBB Westchester Binding

Common Policy Declarations

AWB0102 (02/16) © Chubb. 2016. All rights reserved. Page 1 of 1

 Policy Number: FSF15744042 001 Renewal of: New

 Company Name: Westchester

Surplus Lines

Insurance

Company (A.M.

Best Rating A++)

 Named Insured & Mailing Address: 4-UP CORP

DBA:MIAMI

LAKES

PERFUMES

Producer’s Name & Address: R-T SPECIALTY LLC

18600 NW 87th

Ave, Suite 102

Hialeah, FL 33015

500 WEST MONROE STREET 28TH

FLOOR

CHICAGO, IL 60661

Producer No.: Z05533

Form of Business: Corporation Business Description: Perfume Store

When Coverage

Begins:

03/10/2020 12:01 A.M. Local Time at Named

Insured’s Address

General Policy

Information And

Policy Period

When Coverage

Ends:

03/10/2021 12:01 A.M. Local Time at Named

Insured’s Address

In return for the payment of premium, and subject to all the terms and conditions

of this policy, we agree to provide the insurance as stated in this policy.

The premium for this policy is indicated below next to the applicable Coverage Form(s).

Premiums may be subject to adjustment.

Coverage Form 

 

 

Property $3,706.00

 

Total Policy Term Premium: $3,706.00

 

Total Amount Due: $3,706.00

Attached Forms See Forms Schedule CPFS2

Information

Date Issued: 03/10/2020

These Declarations together with the Coverage Declarations, Common Policy Conditions and Coverage

Conditions (if applicable), Coverage Form(s) and Forms and Endorsements, if any, issued to form a part

thereof, complete the above numbered policy.

Case 1:20-cv-22049-KMM Document 1-3 Entered on FLSD Docket 05/15/2020 Page 4 of 90
 Commercial Property Declarations 

AWB0103 (02/16)

©Chubb.2016.Allrights reserved.

Includes copyrighted material of Insurance Services Office, Inc with its permission Page 1 of 1

Location

Loc.

No.

Bld.

No. Address

1 1 18600 NW 87th Ave Unit 102, Hialeah, FL 33015

Loc.

No. Bld. No. Coverage Rate Limit of Insurance $ Premium

1 1 Contents/BPP 0.44 $700,000 $3,142

1 1 Business

Interruption

0.44 $70,000 $314

ALL ALL Property

Enhancement

$250

 Total Advance Premium This Page: $3,706

 Total Advance Property Premium : $3,706

The Replacement Cost and Co-insurance or BI/EE Mo. Limit Of Indemnity options are provided when indicated by

an entry below:

Loc. No. Bld. No. Coverage

Covered Causes

of Loss

Form

Replacement

Cost

Co-insurance

% or BI/EE Mo.

Limit Of Indemnity

1 1

Contents/BP

P

Special Including

Theft

X 80%

1 1

Business

Interruption

Special Including

Theft

X

BI/EE

80%

 See attached Schedule AWB0103s

Company: Westchester Surplus Lines Insurance Company (A.M.

Best Rating A++)

SYM: FS Policy ID: FSF15744042 001

Coverages and Limits Provided

Insurance at Described Location Applies Only for Coverage for Which a Limit of Insurance is shown

Coverage Options

Deductible 

$5,000 See Multiple Deductible Form See Windstorm Or Hail Deductible

Form X

Case 1:20-cv-22049-KMM Document 1-3 Entered on FLSD Docket 05/15/2020 Page 5 of 90
Boiler and Machinery/Equipment Breakdown 

Declarations

Form CPBMB2 (06/11) © Chubb. 2016. All rights reserved. Page 1 of 2

Company: Westchester Surplus Lines Insurance Company

(A.M. Best Rating A++)

SYM: FS Policy ID: FSF15744042 001

Location Building Location of Objects Shown Below

1 1 18600 NW 87th Ave Unit 102, Hialeah, FL 33015

Coverages Coverages, Limits of Insurance and Options – Insurance applies only to a coverage for which a

Limit or "Included" is shown below.

COVERAGE LIMIT

"Total Limit per Accident": $770,000

Property Damage: Included in "Total Limit per Accident"

Business Income, including Service Interruption: Included in "Total Limit per Accident"

Extended Business Income: Not Covered for 30 days

Extra Expense, including Service Interruption: Included in Business Income

Perishable Goods, including Ammonia

Contamination and Service Interruption:

$25,000

CFC Refrigerants: $25,000

Computer Equipment: $25,000

Demolition and Increased Cost of Construction: $25,000

Expediting:

Newly Acquired or Constructed Property

- Property Damage Buildings:

Your Business

Personal

Property:

Notice

Requirement:

$250,000 at each building

$100,000 at each building 30 days

Newly Acquired Locations - Business

Income / Extra Expense: Notice

Requirement:

Not Covered at each location Not

Applicable days

Hazardous Substance: $25,000

Water Damage: Included in "Total Limit per Accident"

"Total Limit per Accident" means the total maximum amount payable for all coverage provided under

this Endorsement as the result of "One Accident".

Additional

Coverages

COVERAGE LIMIT

DataRestoration $25,000

Deductible COVERAGE DEDUCTIBLE

Property Damage: $1,000

Business Income: Included

Extra Expense: Included

OtherDeductible(s):

Case 1:20-cv-22049-KMM Document 1-3 Entered on FLSD Docket 05/15/2020 Page 6 of 90
Boiler and Machinery/Equipment Breakdown 

Declarations

Form CPBMB2 (06/11) © Chubb. 2016. All rights reserved. Page 2 of 2

Special

Provisions

Attached

Forms

Information

 

Refer to Forms Schedule CPfs2

 

Case 1:20-cv-22049-KMM Document 1-3 Entered on FLSD Docket 05/15/2020 Page 7 of 90
Forms Schedule

CPfs2 (01/11) 1 of 2

Company: Westchester Surplus Lines Insurance Company (A.M. Best Rating A++)

SYM: FS Policy ID: FSF15744042 001

Policy Period When Coverage Begins: 03/10/2020 12:01 A.M. Local Time At Named Insured’s Address

When Coverage Ends: 03/10/2021 12:01 A.M. Local Time At Named Insured’s Address

Form Number Form Title

SL24680 (10/09) FLORIDA SURPLUS LINES NOTIFICATION

SLPD (03/08) SURPLUS LINES DECLARATIONS

AWB0102 (02/16) COMMON POLICY DECLARATIONS

AWB0103 (02/16) COMMERCIAL PROPERTY DECLARATIONS

CPBMB2 (06/11) BOILER AND MACHINERY/EQUIPMENT BREAKDOWN

DECLARATIONS

CPfs2 (01/11) FORMS SCHEDULE

ACE0204 (05/10) FUNGUS, WET ROT, DRY ROT AND BACTERIA EXCLUSION

ACE0210 (01/08) NUCLEAR, BIOLOGICAL, CHEMICAL, RADIOLOGICAL

EXCLUSION ENDORSEMENT

ACE0359 (12/10) EARTHQUAKE SPRINKLER LEAKAGE EXCLUSION

ACE0421 (08/09) PRE-EXISTING PROPERTY DAMAGE EXCLUSION

ACE0676 (01/12) COVERAGE PLUS + PROPERTY ENHANCEMENT

ENDORSEMENT

ACE0677 (01/12) COVERAGE PLUS PROPERTY ENHANCEMENT

ENDORSEMENT SCHEDULE OF SUB-LIMITS

ACE0681 (10/11) DEFINITION OF LOSS OCCURRENCE ENDORSEMENT

ACE0755 (02/13) COMMERCIAL PROPERTY CONDITIONS

AWB0211 (02/16) WINDSTORM OR HAIL DEDUCTIBLE

BM1000 (05/99) EQUIPMENT BREAKDOWN COVERAGE ENDORSEMENT

CP0010 (10/12) BUILDING AND PERSONAL PROPERTY COVERAGE FORM

CP0030 (10/12) BUSINESS INCOME (AND EXTRA EXPENSE) COVERAGE

FORM

CP0411 (10/12) PROTECTIVE SAFEGUARDS

CP1030 (10/12) CAUSES OF LOSS - SPECIAL FORM

CP1211 (10/00) Burglary and Robbery Protective Safeguards

ILP003 (07/05) FLOOD COVERAGE ADVISORY NOTICE TO POLICYHOLDERS

FA49317 (06/17) ASBESTOS MATERIAL EXCLUSION

ALL39844 (02/13) CHUBB PRIVACY NOTICE

WSG084 (05/11) SURPLUS LINES BROKER NOTICE

TRIA24 (01/15) POLICYHOLDER DISCLOSURE NOTICE OF TERRORISM

INSURANCE COVERAGE

ALL10750 (01/15) TERRORISM EXCLUSION ENDORSEMENT

CP0125 (02/12) FLORIDA CHANGES

LD5S23j (03/14) SIGNATURE ENDORSEMENT

IL0017 (11/98) COMMON POLICY CONDITIONS

ALL20887 (10/06) CHUBB PRODUCER COMPENSATION PRACTICES & POLICIES

ALL21101 (11/06) TRADE OR ECONOMIC SANCTIONS ENDORSEMENT

ALL5X45 (11/96) QUESTIONS ABOUT YOUR INSURANCE?

AWB0311 (02/16) CLAIMS DIRECTORY

AWB0310 (09/15) MINIMUM EARNED PREMIUM ENDORSEMENT

SL44730a (01/16) SERVICE OF SUIT ENDORSEMENT - FLORIDA

ALL42490b (07/16) U.S. FOREIGN ACCOUNT TAX COMPLIANCE ACT (“FATCA”)

ILP001 (01/04) U.S. TREASURY DEPARTMENT'S OFFICE OF FOREIGN

ASSETS CONTROL (OFAC) ADVISORY NOTICE TO

Case 1:20-cv-22049-KMM Document 1-3 Entered on FLSD Docket 05/15/2020 Page 8 of 90
Forms Schedule

CPfs2 (01/11) 2 of 2

POLICYHOLDERS

Case 1:20-cv-22049-KMM Document 1-3 Entered on FLSD Docket 05/15/2020 Page 9 of 90
FUNGUS, WET ROT, DRY ROT AND BACTERIA EXCLUSION

Named Insured

4-UP CORP

Endorsement Number

Policy Symbol

FS

Policy Number

FSF15744042 001

Policy Period

03-10-2020 To 03-10-2021

Effective Date of Endorsement

Issued By (Name of Insurance Company)

Westchester Surplus Lines Insurance Company

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

THIS ENDORSEMENT MODIFIES INSURANCE PROVIDED UNDER THE FOLLOWING:

COMMERCIAL PROPERTY COVERAGE PART

COMMERCIAL INLAND MARINE COVERAGE PART

A. The following exclusion is added:

We will not pay for loss, or physical loss or damage, caused directly or indirectly by any of the following. Such loss or

physical loss or damage, is excluded regardless of any cause or event that contributes concurrently or in any

sequence to the loss, or physical loss or damage:

1. Presence, growth, proliferation, spread or activity of "fungus", wet rot or dry rot or bacteria. But if "fungus" wet rot,

dry rot or bacteria results in a "specified cause of loss", we will pay for the loss caused by that "specified cause of

loss". This exclusion does not apply when "fungus", wet rot or dry rot, or bacteria results from fire or lightning;

2. Enforcement of any ordinance or law which requires the demolition, repair, replacement, reconstruction,

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

proliferation, spread or any activity of "fungus", wet rot or dry rot, or bacteria; or

3. The cost 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", "fungus", wet rot or dry rot, or bacteria.

B. The following are added to the Definitions:

"Fungus" means any type or form of fungus, including mold or mildew, and any mycotoxins, spores, scents or

byproducts produced or released by fungi.

“Specifiedcause of loss” means: 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.

“Pollutants”means any solid, liquid, gaseous or thermal irritant or contaminant, including vapor, soot, fumes, acids,

alkalis, chemicals and waste. Waste includes materials to be recycled, reconditioned or reclaimed.

This endorsement may be attached to a coverage form or an endorsement with a different definition from the listed

definitions. If there is a different definition, that definition does not apply to this endorsement.

All other terms and conditions remain unchanged.

ACE0204 (05/10) © Chubb. 2016. All rights reserved. Page 1 of 1

1

Case 1:20-cv-22049-KMM Document 1-3 Entered on FLSD Docket 05/15/2020 Page 10 of 90
NUCLEAR, BIOLOGICAL, CHEMICAL, RADIOLOGICAL

EXCLUSION ENDORSEMENT

Named Insured

4-UP CORP

Endorsement Number

Policy Symbol

FS

Policy Number

FSF15744042 001

Policy Period

03-10-2020 To 03-10-2021

Effective Date of Endorsement

Issued By (Name of Insurance Company)

Westchester Surplus Lines Insurance Company

Insert the policy number. The remainder of the information is to be completed only when this endorsement is issued subsequent to the preparation of the policy.

THIS ENDORSEMENT CHANGES YOUR POLICY. PLEASE READ IT CAREFULLY.

This endorsement modifies insurance provided under the following:

BOILER AND MACHINERY COVERAGE PART

COMMERCIAL INLAND MARINE COVERAGE PART

COMMERCIAL PROPERTY COVERAGE PART

CRIME AND FIDELITY COVERAGE PART

The following exclusions are added to your Policy or Coverage Part.

This insurance does not apply to:

B. Loss or damage arising directly or indirectly from the

dispersal, application or release of, or exposure to,

chemical, radiological, or biological materials or agents, all

whether controlled or uncontrolled, or due to any act or

condition incident to any of the foregoing, whether such

loss be direct or indirect, proximate or remote, or be in

whole or in part caused by, contributed to, or aggravated

by, any physical loss or damage insured against by this

Policy or Coverage Part, however such dispersal,

application, release or exposure may have been caused.

C. If this endorsement is attached to a Commercial Inland

Marine Policy or Coverage Part, the term loss or damage

is changed to Loss.

A. Loss or damage arising directly or indirectly

from nuclear detonation, reaction, nuclear

radiation or ra-dioactive contamination, all

whether controlled or uncontrolled, or due

to any act or condition incident to any of the

foregoing, whether such loss be direct or

indirect, proximate or remote, or be in

whole or in part caused by, contributed to,

or aggravated by, any physical loss or

damage insured against by this Policy or

Coverage Part, however such nuclear

detonation, reaction, nuclear radiation or

radioactive contamination may have been

caused. This exclusion replaces any other

nuclear detonation, nuclear reaction,

nuclear radiation or radioactive

contamination exclusions found elsewhere

in this Policy.

ACE0210 (01/08) .© Chubb. 2016. All rights reserved. Page 1 of 1

Case 1:20-cv-22049-KMM Document 1-3 Entered on FLSD Docket 05/15/2020 Page 11 of 90
ACE0359 (12/10) © Chubb. 2016. All rights reserved. Page 1 of 1

EARTHQUAKE SPRINKLER LEAKAGE EXCLUSION

Named Insured

4-UP CORP

Endorsement Number

Policy Symbol

FS

Policy Number

FSF15744042 001

Policy Period

03-10-2020 To 03-10-2021

Effective Date of Endorsement

Issued By (Name of Insurance Company)

Westchester Surplus Lines Insurance Company

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

THIS ENDORSEMENT MODIFIES INSURANCE PROVIDED UNDER THE FOLLOWING:

COMMERCIAL PROPERTY COVERAGE PART

COMMERCIAL INLAND MARINE COVERAGE PART

This policy does not insure against loss caused directly or indirectly by any of the following. Such loss is excluded

regardless of any other cause or event contributing concurrently or in any sequence to the loss.

Loss or damage by sprinkler leakage caused directly by earthquake, earth movement or volcanic eruption.

Definitions

Sprinkler leakage means:

A. Leakage or discharge of water or other substances from within any automatic sprinkler system, or

B. Direct loss caused by collapse or fall of a tank forming a part of such system.

Automatic sprinkler system means:

Any automatic fire protective system including sprinklers, discharge nozzles and ducts, pipes, valves, fittings,

tanks (including their component parts and supports), pumps and private fire protection mains, all connected

with and constituting a part of an automatic protective system; and non-automatic fire protective systems,

hydrants, standpipes or outlets supplied from an automatic fire protective system.

All other terms and conditions remain unchanged.

Case 1:20-cv-22049-KMM Document 1-3 Entered on FLSD Docket 05/15/2020 Page 12 of 90
ACE0421 (08/09) © Chubb. 2016. All rights reserved. Page 1 of 1

PRE-EXISTING PROPERTY DAMAGE EXCLUSION

Named Insured

4-UP CORP

Endorsement Number

Policy Symbol

FS

Policy Number

FSF15744042 001

Policy Period

03-10-2020 To 03-10-2021

Effective Date of Endorsement

Issued By (Name of Insurance Company)

Westchester Surplus Lines Insurance Company

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

THIS ENDORSEMENT MODIFIES INSURANCE PROVIDED UNDER THE FOLLOWING:

PROPERTY COVERAGE PART

INLAND MARINE COVERAGE PART

This policy excludes any loss or damage directly or indirectly caused by, resulting from or contributed to by any

pre-existing property damage at the time of loss.

Case 1:20-cv-22049-KMM Document 1-3 Entered on FLSD Docket 05/15/2020 Page 13 of 90
ACE0676 (01/12) Includes copyrighted material of Insurance Services Office, Inc., with its permission

 

Page 1 of 4

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

THIS ENDORSEMENT MODIFIES INSURANCE PROVIDED UNDER THE FOLLOWING:

BUILDING AND PERSONAL PROPERTY COVERAGE FORM

CONDOMINIUM ASSOCIATION COVERAGE FORM

COMMERCIAL PROPERTY COVERAGE PART

THIS FORM MUST BE ACCOMPANIED BY A COVERAGE Plus+ PROPERTY ENHANCEMENT ENDORSEMENT

SCHEDULE OF SUB-LIMITS

A. Fire Department Service Charge

1. Additional Coverage Fire Department Service

Charge, A.4.c., is deleted and replaced by the

following.

When the fire department is called to save or

protect Covered Property from a Covered Cause

of Loss, we will pay up to the Fire Department

Service Charge Limit of Insurance shown in the

Schedule of Sub-Limits for your liability for fire

department service charges:

(1) Assumed by contract or agreement prior to

loss; or

(2) Required by local ordinance, or

(3) Foam solutions, dry chemicals, halon, or

other fire extinguishing materials which have

been lost, expanded, damaged or destroyed

as a result of or arising out of a Covered

Cause of Loss.

B. Pollution Clean up and Removal

1. Under Additional Coverage Pollution Clean

up and Removal, A.4.d., the last paragraph is

deleted and replaced by the following:

The most we will pay under this Additional

Coverage for each described premises is

Limit of Insurance shown in the Schedule of

Sub-Limits for the sum of all covered

expenses arising out of Covered Causes of

Loss occurring during each separate 12-

month period of this policy.

C. Electronic Data

1. Additional Coverages Electronic Data, A.4.

f. (4), is deleted and replaced by the following:

The most we will pay under this Additional

Coverage, Electronic Data, for all loss or

damage sustained in any one policy year,

regardless of the number of occurrences of loss

or damage or the number of premises, locations

or computer systems involved is the Electronic

Data Limit of Insurance shown in the Schedule

of Sub-Limits. If loss payment on the first

occurrence does not exhaust this amount, then

the balance is available for subsequent loss or

damage sustained in but not after that policy

year. With respect to an occurrence which

begins in one policy year and continues or

results in additional loss or damage in a

subsequent policy year(s), all loss or damage is

deemed to be sustained in the policy year in

which the occurrence began.

D. Back Up of Sewers and Drains Coverage

COVERAGE PLUS+ PROPERTY ENHANCEMENT ENDORSEMENT

Named Insured Endorsement Number

4-UP CORP

Policy Symbol Policy Number Policy Period Effective Date of Endorsement

FS FSF15744042

001

03-10-2020 To 03-10-2021

Issued By (Name of Insurance Company)

Westchester Surplus Lines Insurance Company

Case 1:20-cv-22049-KMM Document 1-3 Entered on FLSD Docket 05/15/2020 Page 14 of 90
ACE0676 (01/12) Includes copyrighted material of Insurance Services Office, Inc., with its permission

 

Page 2 of 4

The following is added as an Additional

Coverage under Section A.4.:

g. Back Up of Sewers and Drains Coverage

1. Under this Additional Coverage, we will pay for

loss or damage arising out of a Covered Cause

of Loss to Covered Property at the premises

described in the declarations.

2. Under this Additional Coverage, Back Up of

Sewers and Drains means water that backs up

or overflows or is otherwise discharged from a

sewer, drain, sump, sump pump or related

equipment.

3. For the purposes of this Additional Coverage 

only, Exclusion B.1.g. Water of the Cause of

Loss – Special Form (CP 10 30) is deleted and

replaced by the following:

g. Water

(1) Flood, surface water, waves (including

tidal wave and tsunami), tides, tidal

water, overflow of any body of water, or

spray from any of these, all whether or

not driven by wind (including storm

surge);

(2) Mudslide or mudflow;

(3) Water under the ground surface

pressing on, or flowing or seeping

through:

(1) Foundations, walls, floors, or paved

surfaces;

(2) Basements, whether paved or not;

or

(3) Doors, windows or other openings;

or

(4) Waterborne material carried or otherwise

moved by any of the water referred to in

Para-graph 1., or 3. ., or material carried or

other-wise moved by mudslide or mudflow.

This exclusion applies regardless of whether

any of the above, in Paragraphs 1. through 4.,

is caused by an act of nature or is otherwise

caused. An example of a situation to which this

exclusion applies is the situation where a dam,

levee, sea-wall or other boundary or

containment system fails in whole or in part, for

any reason, to contain the water.

But if any of the above, in Paragraphs 1.

through 4., results in fire, explosion or sprinkler

leakage, we will pay for the loss or damage

caused by that fire, explosion or sprinkler

leakage (if sprinkler leakage is a Covered

Cause of Loss).

The most we will pay under this Additional

Coverage is the Backup of Sewers and Drains

Limit of Insurance shown in the Schedule of

Sub-Limits for the sum of all covered expenses

arising out of Covered Causes of Loss occurring

during each separate 12-month period of this

policy.

E. Personal Effects and Property of Others

1. Coverage Extension Personal Effects And

Property Of Others, A.5.b., is deleted and

replaced by the following:

b. Personal Effects And Property Of Others

You may extend the insurance that applies

to Your Business Personal Property to apply

to:

(1) Personal effects owned by you, your

officers, your partners or members, your

managers or your employees. This

extension does not apply to loss or

damage by theft.

(2) Personal property of others in your care,

custody or control.

(3) The most we will pay for loss or damage

under this Extension at each described

premises is the Personal Effects and

Property of Others Limit of Insurance

shown in the Schedule of Sub-Limits.

Our payment for loss of or damage to

personal property of others will only be

for the account of the owner of the

property.

F. Valuable Papers and Records Coverage

1. Under Coverage Extension Valuable Papers

and Records (Other Than Electronic Data),

A.5.c.(4), is deleted and replaced by the

following:

Case 1:20-cv-22049-KMM Document 1-3 Entered on FLSD Docket 05/15/2020 Page 15 of 90
ACE0676 (01/12) Includes copyrighted material of Insurance Services Office, Inc., with its permission

 

Page 3 of 4

(4) Under this Extension, the most we will

pay to replace or restore the lost

information at each described premises

is the Valuable Papers and Records

Limit of Insurance shown in the

Schedule of Sub-Limits. Such amount

is additional insurance. We will also

pay for the cost of blank material for

reproducing the records (whether or

not duplicates exist), and (when there

is a duplicate) for the cost of labor to

transcribe or copy the records. The

costs of blank material and labor are

subject to the applicable Limit of

Insurance on Your Business Personal

Property and therefore coverage of

such costs is not additional insurance.

G. Property Off-premises

1. Coverage Extension Property Off Premises,

A.5.d., is deleted and replaced by the following:

d. Property Off-Premises

1. You may extend the insurance provided

by this Coverage Form to apply to your

Covered Property while it is away from

the described premises, if it is:

(a) Temporarily at a location you do not

own, lease or operate;

(b) In storage at a location you lease,

provided the lease was executed

after the beginning of the current

policy term; or

(c) At any fair, trade show or exhibition.

2. This Extension does not apply to

property:

(a) In or on a vehicle;

(b) In the care, custody or control of

your salespersons, unless the

property is in such care, custody or

control at a fair, trade show or

exhibition; or

(c) Stock

3. The most we will pay for loss or damage

under this Extension is the Property

Off-premises Limit of Insurance shown

in the Schedule of Sub-Limits.

H. Outdoor Property

1. Under Coverage Extension Outdoor Property,

A.5.e., the last paragraph is deleted and

replaced by the following:

The most we will pay for loss or damage under

this Extension is the Outdoor Property Limit of

Insurance shown in the Schedule of Sub-Limits,

but we will not pay more than $250 for any one

tree, shrub or plant. These limits apply to any

one occurrence, regardless of the types or

number of items lost or damaged in that

occurrence.

I. Signs

1. The second paragraph of Section C. Limits Of

Insurance is deleted and replaced by the

following::

The most we will pay for loss or damage to

outdoor signs, whether or not the sign is

attached to a building, is the Outdoor Signs Limit

of Insurance shown in the Schedule of SubLimits.

J. Property In Transit

1. Under the Causes of Loss - Special Form,

CP1030, Additional Coverage Extensions

Property in Transit, F.1.c. is deleted and

replaced by the following:

c. The most we will pay for loss or damage

under this Extension is the Property in

Transit Limit of Insurance shown in the

Schedule of Sub-Limits.

K. Accounts Receivable

The following Coverage Extension is added to the

Section A.5. Coverage Extensions of the Building

and Personal Property Coverage Form (CP 00

10):

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ACE0676 (01/12) Includes copyrighted material of Insurance Services Office, Inc., with its permission

 

Page 4 of 4

g. Accounts Receivable

1. You may extend the insurance that

applies to Business Personal Property to

apply to covered losses and expenses

that you incur as a result of loss to your

records of "accounts receivable." But this

extension does not apply to "accounts

receivable" which exist as electronic data,

unless the loss results from "specified

causes of loss." The most we will pay

under this coverage extension for all loss

or damage sustained in any one policy

year, regardless of the number of

occurrences of loss or damage or the

number of premises, is the limit stated in

the Schedule. This additional coverage is

provided within, not in addition to, the

Limit of Insurance stated in the

Declarations as applicable to Business

Personal Property.

2. “Accounts Receivable” means:

a) All amounts due from your customers

that you are unable to collect;

b) Interest charges on any loan required

to offset amounts you are unable to

collect pending our payment of these

amounts;

c) Collection expenses in excess of your

normal collection expenses that are

made necessary by the loss; and

d) Other reasonable expenses that you

incur to re-establish your records of

"accounts receivable."

3. If you cannot accurately establish the amount

of "accounts receivable" outstanding as of the

time of loss, the following method will be used

to determine the loss:

a) Determine the total of the average

monthly amounts of "accounts receivable"

for the 12 months immediately preceding

the month in which the loss occurred; and

b) 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.

4. The following will be deducted from the total

amount of "accounts receivable," however

that amount is established:

a) The amount of the accounts for which

there is no loss;

b) The amount of the accounts that you

are able to re-establish or collect;

c) An amount to allow for probable bad

debts that you are normally unable to

collect; and

d) All unearned interest and service

charges.

5. You will pay us the amount of all recoveries

you receive for a loss paid by us. But you will

not pay us any recoveries in excess of the

amount we have paid.

Under this additional coverage, electronic

data has the meaning described under

Property Not Covered – Electronic Data in the

Building and Personal Property Coverage

Form.

The most we will pay for loss or damage under this

additional coverage is the Accounts Receivable Limit

of Insurance shown in the Schedule of Sub-Limits.

Case 1:20-cv-22049-KMM Document 1-3 Entered on FLSD Docket 05/15/2020 Page 17 of 90
COVERAGE PLUS+ PROPERTY ENHANCEMENT ENDORSEMENT

SCHEDULE OF SUB-LIMITS

Named Insured Endorsement Number

4-UP CORP

Policy Symbol Policy Number Policy Period Effective Date of Endorsement

FS FSF15744042 001 03-10-2020 To 03-10-2021

Issued By (Name of Insurance Company)

Westchester Surplus Lines Insurance Company

This Schedule Summary is intended to be a general description of coverage. Specific coverage, conditions and exclusions

are given in the Coverage Plus+ Property Enhancement Endorsement ACE0676 (01/12) attached to the policy.

Additional Coverage’s Sub-Limits of Insurance – Per Occurrence

Fire Department Service Charge $ 10,000

Pollution Clean Up and Removal $ 25,000

Electronic Data $ 10,000

Back-Up of Sewers and Drains $ 10,000

Coverage Extensions Sub-Limits of Insurance – Per Occurrence

Personal Effects and Property of Others $ 10,000

Valuable Papers and Records $ 25,000

Property off Premises $ 25,000

Outdoor Property $ 5,000

Signs $ 10,000

Property in Transit $ 10,000

Accounts Receivable $ 25,000

The maximum Limit of Insurance is stated in the Commercial Property coverage part declaration Page; however, if a Sublimit of Liability is stated above or elsewhere in this Policy, the lesser limit shall apply.

The Sub-limit(s) are the most the Company will pay in any one occurrence for various extensions, endorsements,

coverage Parts, Perils, causes of Loss or locations. If an annual aggregate is provided, the occurrence Sub-limit of

Insurance is the most the Company will pay in any one-policy year for such extensions, endorsement, coverage parts,

Perils, causes of Loss or locations.

The Sub-limit(s) are part of and not in addition to the Limit of Insurance. The Sub-limit(s) do not increase the Limit of

Insurance or any other Sub-limit.

All other terms and conditions remain unchanged.

ACE0677 (01/12) © Chubb. 2016. All rights reserved. Page 1 of 1

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ACE0681 (10/11) © Chubb. 2016. All rights reserved. Page 1 of 2

DEFINITION OF LOSS OCCURRENCE ENDORSEMENT

Named Insured 

 4-UP CORP

Endorsement Number 

 

Policy Symbol 

FS

Policy Number 

FSF15744042 001

Policy Period

03-10-2020 To

 

03-10-2021

Effective Date of Endorsement

Issued By (Name of Insurance Company) 

Westchester Surplus Lines Insurance Company

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

THIS ENDORSEMENT MODIFIES INSURANCE PROVIDED UNDER THE FOLLOWING:

COMMERCIAL PROPERTY COVERAGE PART

COMMERCIAL INLAND MARINE COVERAGE PART

The following definition is added to this policy; supersedes any other definition, express or implied, of the term “Loss

Occurrence” in any term, provision or endorsement to this policy; and applies not withstanding such term, provision or

endorsement:

1. ”Loss Occurrence” means the sum of all individual losses arising out of and directly caused by any one disaster,

accident or loss or series of disasters, accidents or losses arising out of one event which occurs anywhere within

the Coverage Territory. The duration and extent of any one Loss Occurrence will be limited to all individual losses

sustained by the Insured occurring during any period of 72 consecutive hours arising out of and directly caused by

the same event, except:

A. As regards Windstorm (including Tier 1 Counties), Flood, Hail or Tornado, including ensuing collapse,

Flood and Water Damage: all individual losses sustained by the Insured occurring during any period of 96

consecutive hours arising out of and directly caused by the same event.

B. As regards the perils of riot, strike or civil commotion, vandalism and malicious mischief, including losses

from all other perils covered hereunder following as a result of the aforesaid perils: all losses or series of

losses occurring during any period of 72 consecutive hours arising out of and directly caused by the same

event. The maximum duration of 72 consecutive hours may be extended in respect of individual losses

which occur beyond such 72 consecutive hours during the continued occupation of the Insured’s

premises by strikers, provided such occupation commenced during the aforesaid period.

C. As regards the peril of Earthquake, including losses from all other perils covered hereunder following as a

result of Earthquake: only those individual losses covered hereunder, which commence during the period

of 168 consecutive hours, may be included in the Loss Occurrence.

D. As regards the peril of freeze: only those individual losses directly caused by collapse, breakage of glass,

water and/or liquid damage due to burst pipes tanks or pressure vessels; damage to machinery or

equipment, stock and/or work in progress due to freeze; and/or individual losses arising directly out of the

lack of supply of power, current, coolant and/or fuel due to frozen pipes and/or frozen feed lines may be

included in the Loss Occurrence.

Except for those Loss Occurrences referred to in sub-paragraphs A. and B. above, the Insured may chose the

date and time when such period of consecutive hours commences, provided that it is not earlier than the date and

time of the occurrence of the first recorded individual loss sustained by the Insured arising out of that disaster,

accident or loss and provided that only one such period of consecutive hours will apply with respect to one event.

However, as respects those Loss Occurrences referred to in sub-paragraphs A. and B. above, if the disaster,

accident or loss occasioned by the event is of greater duration than the specified period of consecutive hours,

then the Insured may divide that disaster, accident or loss into two or more Loss Occurrences, provided no two

periods overlap and no individual loss is included in more than one such period and provided that no period

commences earlier than the date and time of the occurrence of the first recorded individual loss sustained by the

Insured arising from that disaster, accident or loss.

Case 1:20-cv-22049-KMM Document 1-3 Entered on FLSD Docket 05/15/2020 Page 19 of 90
 

ACE0681 (10/11) © Chubb. 2016. All rights reserved. Page 2 of 2

 

 However, we shall not be liable hereunder for any loss or damage:

a) Occurring before this policy becomes effective; or

b) Arising from an “occurrence” which is in progress at the time this policy becomes effective, even if such loss

or damage occurs after this policy becomes effective; or

c) Occurring after the expiration of this policy, except loss or damage arising from an “occurrence” in progress

at the time this policy expires.

This provision in no way alters any Policy Limit of Liability or Sub-limit of Liability.

All other terms and conditions remain unchanged.

Case 1:20-cv-22049-KMM Document 1-3 Entered on FLSD Docket 05/15/2020 Page 20 of 90
COMMERCIAL PROPERTY

COMMERCIAL PROPERTY CONDITIONS

This Coverage Part is subject to the following conditions, the Common Policy Conditions and applicable Loss

Conditions and Additional Conditions in Commercial Property Coverage Forms.

A. CONCEALMENT, MISREPRESENTATION OR

FRAUD

This Coverage Part is void in any case of fraud by

you as it relates to this Coverage Part at any time.

It is also void if you or any other insured, at any

time, intentionally conceal or misrepresent a material fact concerning:

1. This Coverage Part;

2. The Covered Property;

3. Your interest in the Covered Property; or

4. A claim under this Coverage Part.

B. CONTROL OF PROPERTY

Any act or neglect of any person other than you

beyond your direction or control will not affect this

insurance.

The breach of any condition of this Coverage Part

at any one or more locations will not affect coverage at any location where, at the time of loss or

damage, the breach of condition does not exist.

C. 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.

D. LEGAL ACTION AGAINST US

No one may bring a legal action against us under

this Coverage Part unless:

1. There has been full compliance with all of the

terms of this Coverage Part; and

2. The action is brought within 2 years after the

date on which the direct physical loss or damage occurred.

E. LIBERALIZATION

If we adopt any revision that would broaden the

coverage under this Coverage Part without 

additional premium within 45 days prior to or during

the policy period, the broadened coverage will

immediately apply to this Coverage Part.

F. NO BENEFIT TO BAILEE

No person or organization, other than you, having

custody of Covered Property will benefit from this

insurance.

G. OTHER INSURANCE

1. You may have other insurance subject to the

same plan, terms, conditions and provisions as

the insurance under this Coverage Part. If you

do, we will pay our share of the covered loss or

damage. Our share is the proportion that the

applicable Limit of Insurance under this Coverage Part bears to the Limits of Insurance of all

insurance covering on the same basis.

2. If there is other insurance covering the same

loss or damage, other than that described in 1.

above, we will pay only for the amount of 

covered loss or damage in excess of the

amount due from that other insurance, whether

you can collect on it or not. But we will not pay

more than the applicable Limit of Insurance.

H. POLICY PERIOD, COVERAGE TERRITORY

Under this Coverage Part:

1. We cover loss or damage commencing:

a. During the policy period shown in the

Declarations; and

b. Within the coverage territory.

2. The coverage territory is:

a. The United States of America (including its

territories and possessions); and

b. Puerto Rico.

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

ACE0755 (02/13) © Chubb. 2016. All rights reserved. Page 1 of 2

Case 1:20-cv-22049-KMM Document 1-3 Entered on FLSD Docket 05/15/2020 Page 21 of 90
 I. TRANSFER OF RIGHTS OF RECOVERY

AGAINST OTHERS TO US

If any person or organization to or for whom we

make payment under this Coverage Part 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 or

Covered Income.

2. After a loss to your Covered Property or 

Covered Income only if, at time of loss, that

party is one of the following:

a. Someone insured by this insurance;

b. A business firm:

(1) Owned or controlled by you; or

(2) That owns or controls you; or

c. Your tenant.

This will not restrict your insurance.

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

ACE0755 (02/13) © Chubb. 2016. All rights reserved. Page 2 of 2

Case 1:20-cv-22049-KMM Document 1-3 Entered on FLSD Docket 05/15/2020 Page 22 of 90
AWB0211 (02/16)

© Chubb. 2016. All rights reserved. Page 1 of 2

WINDSTORM OR HAIL DEDUCTIBLE FORM

Named Insured

4-UP CORP

Endorsement Number

Policy Symbol

FS

Policy Number

FSF15744042 001

Policy Period

2020-03-10 To 2021-03-10

Effective Date of Endorsement

Issued By (Name of Insurance Company)

WestchesterSurplusLines

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

THIS ENDORSEMENT MODIFIES INSURANCE PROVIDED UNDER THE FOLLOWING:

COMMERCIAL PROPERTY COVERAGE PART

Minimum Dollar Deductible $5000 Per Occurrence (applicable with a Percentage Deductible)

Percentage or Applicable to Applicable to Location # Building #

Dollar Deductible "Named Storm" "Hawaii Hurricane"

Only Only

1 1 5% Yes No Yes No

With respect to loss or damage caused directly or indirectly by:

1. Windstorm or hail, or

2. Rain damage to the interior of any building or structure, or the property inside the building or structure,

whether the rain is driven by wind or not, provided the building or structure first sustains windstorm or hail

damage to its roof or walls through which the rain enters,

the Deductibles shown in the Schedule above replace any other applicable deductible.

Each location deductible shown in the Schedule above applies separately to such location, regardless of the

number of locations that suffer loss or damage.

Case 1:20-cv-22049-KMM Document 1-3 Entered on FLSD Docket 05/15/2020 Page 23 of 90
AWB0211 (02/16)

© Chubb. 2016. All rights reserved. Page 1 of 2

A. Calculation of Percentage Deductible:

If the applicable deductible for a location is shown as a percentage, for each windstorm or hail occurrence, the

deductible for such location will be calculated and applied separately to:

1. Each building or structure;

2. The contents in or on each building or structure;

3. Personal Property in the open;

4. Business Income/Extra Expense and/or Rental Value; and

5. All other covered items.

In determining the amount, if any, that we will pay for loss or damage, we will deduct an amount equal to the

applicable Percentage Deductible, shown in the Schedule above, to each value listed in the most recent

Schedule Of Values, for each covered item that has sustained loss or damage and for which a claim is being

made under this policy.

If a covered item is not included in the most recent Schedule Of Values, the total values of such covered item at

the time of loss and at the location that suffered loss or damage will be used.

In no event will the deductible amount determined above be less than the applicable Minimum Dollar Deductible

shown in the Schedule above.

B. Calculation of Dollar Deductible:

If the applicable deductible for a location is shown in dollars, for each windstorm or hail occurrence, in

determining the amount, if any, that we will pay for loss or damage, we will deduct an amount equal to the

applicable Dollar Deductible shown in the Schedule above from the total amount of loss or damage at such

location. This Dollar Deductible does not apply to Extra Expense.

C. The deductibles calculated above apply after any reduction required by the coinsurance condition, if

applicable.

D. If coverage is provided for Business Income, the deductibles calculated above apply in addition to the 72

hour waiting period as stated in Form CP 0030 "Business Income (and Extra Expense) Coverage Form" or

Form CP 0032 "Business Income (without Extra Expense) Coverage Form" as regards to loss or damage

described above.

E. If indicated in the Schedule above, the provisions of this endorsement apply only to "Named Storms" or

"Hawaii Hurricanes" as defined in the Named Storm Deductible And Named Storm Definition Endorsement,

form ACE0244 or the Hawaii Hurricane Definition And Hawaii Hurricane Deductible Endorsement, form

ACE0249 attached to this policy.

All other terms and conditions remain unchanged.

Case 1:20-cv-22049-KMM Document 1-3 Entered on FLSD Docket 05/15/2020 Page 24 of 90
EQUIPMENT BREAKDOWN COVERAGE ENDORSEMENT

This endorsement modifies insurance provided under the following:

 BASIC PROPERTY FORM

BROAD PROPERTY FORM

COMPREHENSIVE PROPERTY FORM

BUILDING AND PERSONAL PROPERTY COVERAGE FORM

CAUSES OF LOSS—SPECIAL FORM

CAUSES OF LOSS—BROAD FORM

CAUSES OF LOSS—BASIC FORM

The following is added: ADDITIONAL COVERAGES:

Equipment Breakdown

(1) We will pay for loss caused by or resulting from an “Accident” to “covered equipment”. As used in this

Additional Coverage, an “Accident” means direct physical loss as follows:

(a) mechanical breakdown, including rupture or bursting caused by centrifugal force;

(b) artificially generated electrical 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 or damage to steam boilers, steam pipes, steam engines or steam turbines caused by or resulting

from any condition or event inside such equipment; or

(e) loss or damage to hot water boilers or other water heating equipment caused by or resulting from any

condition or event inside such boilers or equipment.

(2) The following coverages also apply to loss caused by or resulting from an “Accident” to “covered

equipment”. These coverages do not provide additional amounts of insurance.

(a) Expediting Expenses

With respect to your damaged Covered Property, we will pay, up to the amount shown in the

Schedule, the reasonable extra cost to:

(i) make temporary repairs; and

(ii) expedite permanent repairs or replacement.

(b) Hazardous Substances

We will pay for the additional cost to repair or replace Covered Property because of contamination

by a hazardous substance. This includes the additional expenses to clean up or dispose of such

property.

Hazardous substance means any substance other than ammonia that has been declared to be

hazardous to health by a governmental agency.

Additional costs mean those beyond what would have been required had no hazardous substance

been involved.

The most we will pay for loss or damage under this coverage, including actual loss of Business

Income you sustain and necessary Extra Expense you incur, if shown as covered, and loss under

Perishable Goods coverage, is the amount shown in the Schedule.

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

1

BM 1000 (05-99)

Case 1:20-cv-22049-KMM Document 1-3 Entered on FLSD Docket 05/15/2020 Page 25 of 90
 (c) Perishable Goods

(i) We will pay for your loss of "perishable goods" due to spoilage.

(ii) We will also pay for your loss of "perishable goods" due to contamination from the release of

refrigerant, including but not limited to ammonia.

(iii) We will also pay any necessary expenses you incur to reduce the amount of loss under this

coverage. We will pay for such expenses to the extent that they do not exceed the amount of

loss that otherwise would have been payable under this coverage.

(iv) If you are unable to replace the "perishable goods" before its anticipated sale, the amount of

our payment will be determined on the basis of the sales price of the "perishable goods" at

the time of the “Accident”, less discounts and expenses you otherwise would have had.

Otherwise our payment will be determined in accordance with the Valuation condition.

The most we will pay for loss or damage under this coverage is the amount shown in the Schedule.

(d) Computer Equipment

We will pay for loss or damage caused by or resulting from an “Accident” to “computer equipment”.

The most we will pay for loss or damage under this coverage, including actual loss of Business

Income you sustain and necessary Extra Expense you incur, if shown as covered, is the amount

shown in the Schedule.

(e) CFC Refrigerants

We will pay for the additional cost to repair or replace Covered Property because of the use or

presence of a refrigerant containing CFC (chlorinated fluorocarbon) substances. This means the

additional expense to do the least expensive of the following:

(i) Repair the damaged property and replace any lost CFC refrigerant;

(ii) Repair the damaged property, retrofit the system to accept a non-CFC refrigerant and charge

the system with a non-CFC refrigerant; or

(iii) Replace the system with one using a non-CFC refrigerant.

Additional costs mean those beyond what would have been required had no CFC refrigerant been

involved.

The most we will pay for loss or damage under this coverage, including actual loss of Business

Income you sustain and necessary Extra Expense you incur, if shown as covered, and loss under

Perishable Goods coverage, is the amount shown in the Schedule.

 (f) Service Interruption

The insurance provided for Business Income, Extra Expense and Perishable Goods is extended to

apply to loss caused by or resulting from an “Accident” to equipment that is owned by a utility,

landlord, or other supplier with whom you have a contract to provide you with any of the following

services: electrical power, communications, waste disposal, air conditioning, refrigeration, heating,

gas, air, water or steam.

 (g) Demolition and Increased Cost of Construction

 If an “Accident” to “covered equipment” damages a building that is Covered Property;

 and the loss is increased by enforcement of any ordinance or law in

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2

BM 1000 (05-99)

Case 1:20-cv-22049-KMM Document 1-3 Entered on FLSD Docket 05/15/2020 Page 26 of 90
force at the time of the “Accident” that regulates the construction or repair of buildings, or

establishes zoning or land use requirements, we will pay for the following additional costs to comply

with such ordinance or law;

(i) Your actual expenditures for the cost to demolish and clear the site of undamaged parts.

(ii) Your actual expenditures for increased costs to repair, rebuild or construct the building. If the

building is repaired or rebuilt, it must be intended for similar use or occupancy as the current

building, unless otherwise required by zoning or land use ordinance or law.

(iii) Your loss as described in Business Income and Extra Expense coverages, caused by loss

covered in (i) or (ii) above, if these coverages are indicated in the Declarations.

We will not pay for:

(iv) Any fine;

(v) Any liability to a third party;

(vi) Any increase in loss due to a “hazardous substance”; or

(vii) Increased construction costs until the building is actually repaired or replaced.

(3) Conditions

(a) 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 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 written notice from us. 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.

(b) Jurisdictional Inspections

If any property that is “covered equipment” under this endorsement requires inspection to comply

with state or municipal boiler and pressure vessel regulations, we agree to perform such inspection

on your behalf.

(4) DEDUCTIBLE

The Deductible in the Declarations applies unless a special deductible is shown in the Schedule. If a special

Deductible is shown, the following applies.

(a) Property Damage Coverages Deductibles apply to all loss or damage covered by this endorsement,

with the exception of those coverages subject to the Business Income and Extra Expense Coverages

Deductibles as noted below.

If deductibles vary by type of “covered equipment” and more than one type of equipment is involved

in any “one accident”, the highest deductibles will apply.

(b) Application of Deductibles

(i) Dollar Deductibles

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3

BM 1000 (05-99)

Case 1:20-cv-22049-KMM Document 1-3 Entered on FLSD Docket 05/15/2020 Page 27 of 90
 We will not pay for loss or damage resulting from any “one accident” until the amount of loss

or damage exceeds the applicable Deductible shown in the Schedule. We will then pay the

amount of loss or damage in excess of the applicable Deductible, up to the applicable Limit

of Insurance, after any deduction required by the Coinsurance condition or the Agreed Value

Optional Coverage.

(ii) Time Deductible

If a time Deductible is shown in the Schedule, we will not be liable for any loss occurring

during the specified number of hours or days immediately following the Accident. If a time

Deductible is expressed in days, each day shall mean twenty-four consecutive hours.

(iii) Multiple of Average Daily Value (ADV)

If a deductible is expressed as a number times ADV, that amount will be calculated as

follows:

The ADV (Average Daily Value) will be the Business Income (as defined in any Business

Income coverage form that is part of this policy) that would have been earned had no

“Accident” occurred during the period of interruption of business divided by the number of

working days in that period. No reduction shall be made for the Business Income not being

earned, or in the number of working days, because of the “Accident” or any other scheduled

or unscheduled shutdowns during the period of interruption. The ADV applies to all locations

included in the valuation of the loss.

The number indicated in the Schedule shall be multiplied by the ADV as determined above.

The result shall be used as the applicable Deductible.

(5) EXCLUSIONS

(a) All exclusions and limitations in the Property Form or Causes of Loss form apply to Equipment

Breakdown, except the following do not apply to Equipment Breakdown:

(i) In the Basic Property Form, Exclusions 2.a., 2.d.(6) and 2.e. and Limitations E.a. and E.b.

(ii) In the Broad Property Form, Exclusions 2.a., 2.d.(6) and 2.e. and Limitations E.a. and E.b.,

(iii) In the Comprehensive Property Form, Exclusions 2.a., 2.d.(6) and 2.e. and Limitations E.a.

and E.b.

(iv) In the Causes of Loss—Basic Form, Exclusions 2.a., 2.d. and 2.e.

(v) In the Causes of Loss—Broad Form, Exclusions 2.a., 2.b. and 2.c.

(vi) In the Causes of Loss—Special Form, Exclusions 2.a., 2.d.(6) and 2.e., and Limitations C.a.

and C.b.

(b) The exclusions are modified as follows:

(i) The following is added to Exclusion 1.g.(1) of the applicable Property Form or Causes of

Loss form:

However, if electrical “covered equipment” requires drying out because of the above, we will

pay for the direct expenses of such drying out subject to the applicable Limit of Insurance

and Deductible.

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

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BM 1000 (05-99)

Case 1:20-cv-22049-KMM Document 1-3 Entered on FLSD Docket 05/15/2020 Page 28 of 90
(ii) As respects this endorsement only, the last paragraph of Exclusion 2.d. is deleted and

replaced with the following:

But if an excluded cause of loss that is listed in 2.d.(1) through (7) results in an “Accident”,

we will pay for the loss or damage caused by that “Accident”.

This provision does not apply to the Causes of Loss—Basic Form or Causes of Loss—Broad

Form.

(iii) If the Causes of Loss-- Basic Form or Causes of Loss-- Broad Form applies, the following is

added to Exclusion 2.:

Depletion, deterioration, corrosion, erosion, wear and tear, or other gradually developing

conditions. But if loss or damage from an “Accident” results, we will pay for that resulting

loss or damage.

(c) None of the following is “covered equipment”:

(i) structure, foundation, cabinet, compartment or air supported structure or building;

(ii) insulating or refractory material;

(iii) sewer piping, underground vessels or piping, or piping forming a part of a sprinkler system;

(iv) water piping other than boiler feedwater piping, boiler condensate return piping or water

piping forming a part of a refrigerating or air conditioning system;

(v) vehicle, dragline, excavation or construction equipment; or

(vi) equipment manufactured by you for sale.

(d) We will not pay under this endorsement for loss or damage caused by or resulting from:

(i) your failure to use all reasonable means to protect the "perishable goods" from damage

following an “Accident”;

(ii) any defect, virus, loss of data or other situation within “media”. But if loss or damage from

an “Accident” results, we will pay for that resulting loss or damage; or

(iii) any of the following tests:

a hydrostatic, pneumatic or gas pressure test of any boiler or pressure vessel; or

an insulation breakdown test of any type of electrical equipment.

(e) With respect to Service Interruption coverage and Perishable Goods coverage, we will also not pay

for loss or damage caused by or resulting from: fire; lightning; windstorm or hail; explosion (except

for steam or centrifugal explosion); smoke; aircraft or vehicles; riot or civil commotion; vandalism;

sprinkler leakage; falling objects; weight of snow, ice or sleet; freezing or collapse.

(6) DEFINITIONS

(a) “Boilers and Vessels” means:

(i) Any boiler, including attached steam, condensate and feedwater piping; and

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

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BM 1000 (05-99)

Case 1:20-cv-22049-KMM Document 1-3 Entered on FLSD Docket 05/15/2020 Page 29 of 90
(ii) Any fired or unfired pressure vessel subject to vacuum or internal pressure other than the

static pressure of its contents.

This term does not appear elsewhere in this endorsement, but may appear in the Schedule.

(b) "Computer equipment" means Covered Property that is electronic computer or other data processing

equipment, including “media” and peripherals used in conjunction with such equipment.

(c) “Covered equipment”, unless otherwise specified in the Schedule, 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.

(d) “Media” means all forms of electronic, magnetic and optical tapes and discs for use in any electronic

computer or electronic data processing equipment.

(e) “One Accident” means: If an initial Accident causes other Accidents, all will be considered “one

accident”. All Accidents that are the result of the same event will be considered “one accident”.

(f) “Perishable Goods” means personal property maintained under controlled conditions for its

preservation, and susceptible to loss or damage if the controlled conditions change.

(g) “Production Machinery” means any machine or apparatus that processes or produces a product

intended for eventual sale. However, “production machinery” does not mean any fired or unfired

pressure vessel other than a cylinder containing a movable plunger or piston.

This term does not appear elsewhere in this endorsement, but may appear in the Schedule.

The most we will pay for loss or damage under this endorsement is the applicable Limit of Insurance shown in the

Declarations. Coverage provided under this endorsement does not provide an additional amount of insurance.

Authorized Representative

All other terms and conditions remain unchanged.

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

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Case 1:20-cv-22049-KMM Document 1-3 Entered on FLSD Docket 05/15/2020 Page 30 of 90
COMMERCIAL PROPERTY

CP 00 10 10 12

CP 00 10 10 12 © Insurance Services Office, Inc., 2011 Page 1 of 16

BUILDING AND PERSONAL PROPERTY 

COVERAGE FORM 

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

what is and is not covered. 

Throughout this policy, the words "you" and "your" refer to the Named Insured shown in the Declarations. The 

words "we", "us" and "our" refer to the company providing this insurance. 

Other words and phrases that appear in quotation marks have special meaning. Refer to Section H. Definitions. 

A. Coverage 

We will pay for direct physical loss of or damage to 

Covered Property at the premises described in the 

Declarations caused by or resulting from any 

Covered Cause of Loss. 

 1. Covered Property 

Covered Property, as used in this Coverage 

Part, means the type of property described in 

this section, A.1., and limited in A.2. Property 

Not Covered, if a Limit Of Insurance is shown 

in the Declarations for that type of property. 

 a. Building, meaning the building or structure 

described in the Declarations, including: 

 (1) Completed additions; 

 (2) Fixtures, including outdoor fixtures; 

 (3) Permanently installed: 

 (a) Machinery; and 

 (b) Equipment; 

 (4) Personal property owned by you that is 

used to maintain or service the building 

or structure or its premises, including: 

 (a) Fire-extinguishing equipment; 

 (b) Outdoor furniture; 

 (c) Floor coverings; and 

 (d) Appliances used for refrigerating, 

ventilating, cooking, dishwashing or 

laundering; 

 (5) If not covered by other insurance: 

 (a) Additions under construction, 

alterations and repairs to the building 

or structure; 

(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 building 

or structure. 

 b. Your Business Personal Property

consists of the following property located in 

or on the building or structure described in 

the Declarations or in the open (or in a 

vehicle) within 100 feet of the building or 

structure or within 100 feet of the premises 

described in the Declarations, whichever 

distance is greater: 

 (1) Furniture and fixtures; 

 (2) Machinery and equipment; 

 (3) "Stock"; 

 (4) All other personal property owned by 

you and used in your business; 

 (5) Labor, materials or services furnished or 

arranged by you on personal property of 

others; 

 (6) Your use interest as tenant in 

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; 

 (7) Leased personal property for which you 

have a contractual responsibility to 

insure, unless otherwise provided for 

under Personal Property Of Others. 

 c. Personal Property Of Others that is: 

 (1) In your care, custody or control; and 

 (2) Located in or on the building or structure 

described in the Declarations or in the 

open (or in a vehicle) within 100 feet of 

the building or structure or within 100 

feet of the premises described in the 

Declarations, whichever distance is 

greater. 

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However, our payment for loss of or 

damage to personal property of others will 

only be for the account of the owner of the 

property. 

 2. Property Not Covered 

Covered Property does not include: 

 a. Accounts, bills, currency, food stamps or 

other evidences of debt, money, notes or 

securities. Lottery tickets held for sale are 

not securities; 

 b. Animals, unless owned by others and 

boarded by you, or if owned by you, only as 

"stock" while inside of buildings; 

 c. Automobiles held for sale; 

 d. Bridges, roadways, walks, patios or other 

paved surfaces; 

 e. Contraband, or property in the course of 

illegal transportation or trade; 

 f. The cost of excavations, grading, backfilling 

or filling; 

 g. Foundations of buildings, structures, 

machinery or boilers if their foundations are 

below: 

 (1) The lowest basement floor; or 

 (2) The surface of the ground, if there is no 

basement; 

 h. Land (including land on which the property 

is located), water, growing crops or lawns 

(other than lawns which are part of a 

vegetated roof); 

 i. Personal property while airborne or 

waterborne; 

 j. Bulkheads, pilings, piers, wharves or docks; 

 k. Property that is covered under another 

coverage form of this or any other policy in 

which it is more specifically described, 

except for the excess of the amount due 

(whether you can collect on it or not) from 

that other insurance; 

 l. Retaining walls that are not part of a 

building; 

 m. Underground pipes, flues or drains; 

n. Electronic data, except as provided under 

the Additional Coverage, Electronic Data. 

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. This 

paragraph, n., does not apply to your 

"stock" of prepackaged software, or to 

electronic data which is integrated in and 

operates or controls the building's elevator, 

lighting, heating, ventilation, air conditioning 

or security system; 

 o. The cost to replace or restore the 

information on valuable papers and 

records, including those which exist as 

electronic data. Valuable papers and 

records include but are not limited to 

proprietary information, books of account, 

deeds, manuscripts, abstracts, drawings 

and card index systems. Refer to the 

Coverage Extension for Valuable Papers 

And Records (Other Than Electronic Data) 

for limited coverage for valuable papers and 

records other than those which exist as 

electronic data; 

 p. Vehicles or self-propelled machines 

(including aircraft or watercraft) that: 

 (1) Are licensed for use on public roads; or 

 (2) Are operated principally away from the 

described premises. 

This paragraph does not apply to: 

 (a) Vehicles or self-propelled machines 

or autos you manufacture, process 

or warehouse; 

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 (b) Vehicles or self-propelled machines, 

other than autos, you hold for sale; 

 (c) Rowboats or canoes out of water at 

the described premises; or 

 (d) Trailers, but only to the extent 

provided for in the Coverage 

Extension for Non-owned Detached 

Trailers; or 

 q. The following property while outside of 

buildings: 

 (1) Grain, hay, straw or other crops; 

 (2) Fences, radio or television antennas 

(including satellite dishes) and their 

lead-in wiring, masts or towers, trees, 

shrubs or plants (other than trees, 

shrubs or plants which are "stock" or are 

part of a vegetated roof), all except as 

provided in the Coverage Extensions. 

 3. Covered Causes Of Loss 

See applicable Causes Of Loss form as shown 

in the Declarations. 

 4. Additional Coverages 

 a. Debris Removal 

 (1) Subject to Paragraphs (2), (3) and (4),

we will pay your expense to remove 

debris of Covered Property and other 

debris that is on the described premises, 

when such debris is caused by or 

results from a Covered Cause of Loss 

that occurs during the policy period. The 

expenses will be paid only if they are 

reported to us in writing within 180 days 

of the date of direct physical loss or 

damage. 

 (2) Debris Removal does not apply to costs 

to: 

 (a) Remove debris of property of yours 

that is not insured under this policy, 

or property in your possession that is 

not Covered Property; 

(b) Remove debris of property owned by 

or leased to the landlord of the 

building where your described 

premises are located, unless you 

have a contractual responsibility to 

insure such property and it is insured 

under this policy; 

(c) Remove any property that is 

Property Not Covered, including 

property addressed under the 

Outdoor Property Coverage 

Extension; 

(d) Remove property of others of a type 

that would not be Covered Property 

under this Coverage Form;

(e) Remove deposits of mud or earth 

from the grounds of the described 

premises; 

 (f) Extract "pollutants" from land or 

water; or 

 (g) Remove, restore or replace polluted 

land or water. 

 (3) Subject to the exceptions in Paragraph

(4), the following provisions apply:

 (a) The most we will pay for the total of 

direct physical loss or damage plus 

debris removal expense is the Limit 

of Insurance applicable to the 

Covered Property that has sustained 

loss or damage. 

(b) Subject to (a) 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 direct physical loss or 

damage to the Covered Property that 

has sustained loss or damage. 

However, if no Covered Property has 

sustained direct physical loss or 

damage, the most we will pay for 

removal of debris of other property (if 

such removal is covered under this 

Additional Coverage) is $5,000 at 

each location. 

 (4) We will pay up to an additional $25,000 

for debris removal expense, for each 

location, in any one occurrence of 

physical loss or damage to Covered 

Property, if one or both of the following 

circumstances apply: 

 (a) The total of the actual debris removal 

expense plus the amount we pay for 

direct physical loss or damage 

exceeds the Limit of Insurance on 

the Covered Property that has 

sustained loss or damage. 

(b) The actual debris removal expense 

exceeds 25% of the sum of the 

deductible plus the amount that we 

pay for direct physical loss or 

damage to the Covered Property that 

has sustained loss or damage. 

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Therefore, if (4)(a) and/or (4)(b) applies, 

our total payment for direct physical loss 

or damage and debris removal expense 

may reach but will never exceed the 

Limit of Insurance on the Covered 

Property that has sustained loss or 

damage, plus $25,000. 

 (5) Examples 

The following examples assume that 

there is no Coinsurance penalty. 

Example 1 

Limit of Insurance: $ 90,000

Amount of Deductible: $ 500

Amount of Loss: $ 50,000

Amount of Loss Payable: $ 49,500

 ($50,000 – $500)

Debris Removal Expense: $ 10,000

Debris Removal Expense Payable: $ 10,000

($10,000 is 20% of $50,000.) 

The debris removal expense is less than 25% of the 

sum of the loss payable plus the deductible. The sum 

of the loss payable and the debris removal expense 

($49,500 + $10,000 = $59,500) is less than the Limit 

of Insurance. Therefore, the full amount of debris 

removal expense is payable in accordance with the 

terms of Paragraph (3). 

Example 2 

Limit of Insurance: $ 90,000

Amount of Deductible: $ 500

Amount of Loss: $ 80,000

Amount of Loss Payable: $ 79,500

 ($80,000 – $500)

Debris Removal Expense: $ 40,000

Debris Removal Expense Payable 

 Basic Amount: $ 10,500

Additional Amount: $ 25,000

The basic amount payable for debris removal 

expense under the terms of Paragraph (3) is 

calculated as follows: $80,000 ($79,500 + $500) x .25 

= $20,000, capped at $10,500. The cap applies 

because the sum of the loss payable ($79,500) and 

the basic amount payable for debris removal expense 

($10,500) cannot exceed the Limit of Insurance 

($90,000). 

The additional amount payable for debris removal 

expense is provided in accordance with the terms of 

Paragraph (4), because the debris removal expense 

($40,000) exceeds 25% of the loss payable plus the 

deductible ($40,000 is 50% of $80,000), and because 

the sum of the loss payable and debris removal 

expense ($79,500 + $40,000 = $119,500) would 

exceed the Limit of Insurance ($90,000). The 

additional amount of covered debris removal expense 

is $25,000, the maximum payable under Paragraph 

(4). Thus, the total payable for debris removal 

expense in this example is $35,500; $4,500 of the 

debris removal expense is not covered. 

 b. Preservation Of Property 

If it is necessary to move Covered Property 

from the described premises to preserve it 

from loss or damage by a Covered Cause 

of Loss, we will pay for any direct physical 

loss or damage to that property: 

 (1) While it is being moved or while 

temporarily stored at another location; 

and 

 (2) Only if the loss or damage occurs within 

30 days after the property is first moved. 

 c. Fire Department Service Charge 

When the fire department is called to save 

or protect Covered Property from a 

Covered Cause of Loss, we will pay up to 

$1,000 for service at each premises 

described in the Declarations, unless a 

higher limit is shown in the Declarations. 

Such limit is the most we will pay 

regardless of the number of responding fire 

departments or fire units, and regardless of 

the number or type of services performed. 

This Additional Coverage applies to your 

liability for fire department service charges: 

 (1) Assumed by contract or agreement prior 

to loss; or 

 (2) Required by local ordinance. 

No Deductible applies to this Additional 

Coverage. 

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 d. 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 or 

results from a Covered Cause of Loss that 

occurs during the policy period. The 

expenses will be paid only if they are 

reported to us in writing within 180 days of 

the date on which the Covered Cause of 

Loss occurs. 

This Additional 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 under this Additional 

Coverage for each described premises is 

$10,000 for the sum of all covered 

expenses arising out of Covered Causes of 

Loss occurring during each separate 12-

month period of this policy. 

 e. Increased Cost Of Construction 

 (1) This Additional Coverage applies only to 

buildings to which the Replacement 

Cost Optional Coverage applies. 

 (2) In the event of damage by a Covered 

Cause of Loss to a building that is 

Covered Property, we will pay the 

increased costs incurred to comply with 

the minimum standards of an ordinance 

or law in the course of repair, rebuilding 

or replacement of damaged parts of that 

property, subject to the limitations stated 

in e.(3) through e.(9) of this Additional 

Coverage. 

 (3) The ordinance or law referred to in e.(2)

of this Additional Coverage is an 

ordinance or law that regulates the 

construction or repair of buildings or 

establishes zoning or land use 

requirements at the described premises 

and is in force at the time of loss. 

 (4) Under this Additional Coverage, we will 

not pay any costs due to an ordinance 

or law that: 

 (a) You were required to comply with 

before the loss, even when the 

building was undamaged; and 

 (b) You failed to comply with. 

 (5) Under this Additional Coverage, we will 

not pay for: 

 (a) The enforcement of or compliance 

with any ordinance or law which 

requires demolition, repair, 

replacement, reconstruction, 

remodeling or remediation of 

property due to contamination by 

"pollutants" or due to the presence, 

growth, proliferation, spread or any 

activity of "fungus", wet or dry rot or 

bacteria; or 

 (b) Any costs associated with the 

enforcement of or compliance with 

an 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", "fungus", wet 

or dry rot or bacteria. 

 (6) The most we will pay under this 

Additional Coverage, for each described 

building insured under this Coverage 

Form, is $10,000 or 5% of the Limit of 

Insurance applicable to that building, 

whichever is less. If a damaged building 

is covered under a blanket Limit of 

Insurance which applies to more than 

one building or item of property, then the 

most we will pay under this Additional 

Coverage, for that damaged building, is 

the lesser of $10,000 or 5% times the 

value of the damaged building as of the 

time of loss times the applicable 

Coinsurance percentage. 

The amount payable under this 

Additional Coverage is additional 

insurance. 

 (7) With respect to this Additional 

Coverage: 

 (a) We will not pay for the Increased 

Cost of Construction: 

 (i) Until the property is actually 

repaired or replaced at the same 

or another premises; and 

 (ii) Unless the repair or replacement 

is made as soon as reasonably 

possible after the loss or 

damage, not to exceed two 

years. We may extend this period 

in writing during the two years. 

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 (b) If the building is repaired or replaced 

at the same premises, or if you elect 

to rebuild at another premises, the 

most we will pay for the Increased 

Cost of Construction, subject to the 

provisions of e.(6) of this Additional 

Coverage, is the increased cost of 

construction at the same premises. 

(c) If the ordinance or law requires 

relocation to another premises, the 

most we will pay for the Increased 

Cost of Construction, subject to the 

provisions of e.(6) of this Additional 

Coverage, is the increased cost of 

construction at the new premises. 

 (8) This Additional 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 Additional Coverage. 

 (9) The costs addressed in the Loss 

Payment and Valuation Conditions and 

the Replacement Cost Optional 

Coverage, in this Coverage Form, do 

not include the increased cost 

attributable to enforcement of or 

compliance with an ordinance or law. 

The amount payable under this 

Additional Coverage, as stated in e.(6) 

of this Additional Coverage, is not 

subject to such limitation.

 f. Electronic Data 

 (1) Under this Additional Coverage, 

electronic data has the meaning 

described under Property Not Covered, 

Electronic Data. This Additional 

Coverage does not apply to your "stock" 

of prepackaged software, or to 

electronic data which is integrated in 

and operates or controls the building's 

elevator, lighting, heating, ventilation, air 

conditioning or security system.

(2) Subject to the provisions of this 

Additional Coverage, we will pay for the 

cost to replace or restore electronic data 

which has been destroyed or corrupted 

by a Covered Cause of Loss. 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. 

 (3) The Covered Causes of Loss applicable 

to Your Business Personal Property 

apply to this Additional Coverage, 

Electronic Data, subject to the following: 

(a) If the Causes Of Loss – Special 

Form applies, coverage under this 

Additional Coverage, Electronic 

Data, is limited to the "specified 

causes of loss" as defined in that 

form and Collapse as set forth in that 

form. 

(b) If the Causes Of Loss – Broad Form 

applies, coverage under this 

Additional Coverage, Electronic 

Data, includes Collapse as set forth 

in that form. 

 (c) If the Causes Of Loss form is 

endorsed to add a Covered Cause of 

Loss, the additional Covered Cause 

of Loss does not apply to the 

coverage provided under this 

Additional Coverage, Electronic 

Data. 

 (d) The Covered Causes of Loss include 

a virus, harmful code or similar 

instruction introduced into or enacted 

on a computer system (including 

electronic data) or a network to 

which it is connected, designed to 

damage or destroy any part of the 

system or disrupt its normal 

operation. But there is no coverage 

for loss or damage caused by or 

resulting from manipulation of a 

computer system (including 

electronic data) by any employee, 

including a temporary or leased 

employee, or by an entity retained by 

you or for you to inspect, design, 

install, modify, maintain, repair or 

replace that system. 

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 (4) The most we will pay under this 

Additional Coverage, Electronic Data, is 

$2,500 (unless a higher limit is shown in 

the Declarations) for all loss or damage 

sustained in any one policy year, 

regardless of the number of occurrences 

of loss or damage or the number of 

premises, locations or computer 

systems involved. If loss payment on the 

first occurrence does not exhaust this 

amount, then the balance is available for 

subsequent loss or damage sustained in 

but not after that policy year. With 

respect to an occurrence which begins 

in one policy year and continues or 

results in additional loss or damage in a 

subsequent policy year(s), all loss or 

damage is deemed to be sustained in 

the policy year in which the occurrence 

began. 

 5. Coverage Extensions 

Except as otherwise provided, the following 

Extensions apply to property located in or on 

the building described in the Declarations or in 

the open (or in a vehicle) within 100 feet of the 

described premises. 

If a Coinsurance percentage of 80% or more, 

or a Value Reporting period symbol, is shown 

in the Declarations, you may extend the 

insurance provided by this Coverage Part as 

follows: 

 a. Newly Acquired Or Constructed 

Property 

 (1) Buildings 

If this policy covers Building, you may 

extend that insurance to apply to: 

 (a) Your new buildings while being built 

on the described premises; and 

 (b) Buildings you acquire at locations, 

other than the described premises, 

intended for: 

 (i) Similar use as the building 

described in the Declarations; or 

 (ii) Use as a warehouse. 

The most we will pay for loss or damage 

under this Extension is $250,000 at 

each building. 

 (2) Your Business Personal Property 

 (a) If this policy covers Your Business 

Personal Property, you may extend 

that insurance to apply to: 

 (i) Business personal property, 

including such property that you 

newly acquire, at any location 

you acquire other than at fairs, 

trade shows or exhibitions; or 

 (ii) Business personal property, 

including such property that you 

newly acquire, located at your 

newly constructed or acquired 

buildings at the location 

described in the Declarations. 

The most we will pay for loss or 

damage under this Extension is 

$100,000 at each building. 

 (b) This Extension does not apply to:

 (i) Personal property of others that 

is temporarily in your possession 

in the course of installing or 

performing work on such 

property; or 

 (ii) Personal property of others that 

is temporarily in your possession 

in the course of your 

manufacturing or wholesaling 

activities. 

 (3) Period Of Coverage

With respect to insurance provided 

under this Coverage Extension for 

Newly Acquired Or Constructed 

Property, coverage will end when any of 

the following first occurs: 

 (a) This policy expires; 

 (b) 30 days expire after you acquire the 

property or begin construction of that 

part of the building that would qualify 

as covered property; or 

 (c) 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. 

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 b. Personal Effects And Property Of Others 

You may extend the insurance that applies 

to Your Business Personal Property to 

apply to: 

 (1) Personal effects owned by you, your 

officers, your partners or members, your 

managers or your employees. This 

Extension does not apply to loss or 

damage by theft. 

 (2) Personal property of others in your care, 

custody or control. 

The most we will pay for loss or damage 

under this Extension is $2,500 at each 

described premises. Our payment for loss 

of or damage to personal property of others 

will only be for the account of the owner of 

the property. 

 c. Valuable Papers And Records (Other 

Than Electronic Data) 

 (1) You may extend the insurance that 

applies to Your Business Personal 

Property to apply to the cost to replace 

or restore the lost information on 

valuable papers and records for which 

duplicates do not exist. But this 

Extension does not apply to valuable 

papers and records which exist as 

electronic data. Electronic data has the 

meaning described under Property Not 

Covered, Electronic Data. 

 (2) If the Causes Of Loss – Special Form 

applies, coverage under this Extension 

is limited to the "specified causes of 

loss" as defined in that form and 

Collapse as set forth in that form. 

 (3) If the Causes Of Loss – Broad Form 

applies, coverage under this Extension 

includes Collapse as set forth in that 

form.

(4) Under this Extension, the most we will 

pay to replace or restore the lost 

information is $2,500 at each described 

premises, unless a higher limit is shown 

in the Declarations. Such amount is 

additional insurance. We will also pay 

for the cost of blank material for 

reproducing the records (whether or not 

duplicates exist) and (when there is a 

duplicate) for the cost of labor to 

transcribe or copy the records. The 

costs of blank material and labor are 

subject to the applicable Limit of 

Insurance on Your Business Personal 

Property and, therefore, coverage of 

such costs is not additional insurance. 

 d. Property Off-premises 

 (1) You may extend the insurance provided 

by this Coverage Form to apply to your 

Covered Property while it is away from 

the described premises, if it is: 

 (a) Temporarily at a location you do not 

own, lease or operate; 

(b) In storage at a location you lease, 

provided the lease was executed 

after the beginning of the current 

policy term; or 

(c) At any fair, trade show or exhibition. 

 (2) This Extension does not apply to 

property:

 (a) In or on a vehicle; or 

 (b) In the care, custody or control of 

your salespersons, unless the 

property is in such care, custody or 

control at a fair, trade show or 

exhibition.

(3) The most we will pay for loss or damage 

under this Extension is $10,000. 

 e. Outdoor Property 

You may extend the insurance provided by 

this Coverage Form to apply to your 

outdoor fences, radio and television 

antennas (including satellite dishes), trees, 

shrubs and plants (other than trees, shrubs 

or plants which are "stock" or are part of a 

vegetated roof), including debris removal 

expense, caused by or resulting from any of 

the following causes of loss if they are 

Covered Causes of Loss: 

 (1) Fire; 

 (2) Lightning; 

 (3) Explosion; 

 (4) Riot or Civil Commotion; or 

 (5) Aircraft. 

The most we will pay for loss or damage 

under this Extension is $1,000, but not 

more than $250 for any one tree, shrub or 

plant. These limits apply to any one 

occurrence, regardless of the types or 

number of items lost or damaged in that 

occurrence. 

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Subject to all aforementioned terms and 

limitations of coverage, this Coverage 

Extension includes the expense of 

removing from the described premises the 

debris of trees, shrubs and plants which are 

the property of others, except in the 

situation in which you are a tenant and such 

property is owned by the landlord of the 

described premises. 

 f. Non-owned Detached Trailers 

 (1) You may extend the insurance that 

applies to Your Business Personal 

Property to apply to loss or damage to 

trailers that you do not own, provided 

that: 

 (a) The trailer is used in your business; 

 (b) The trailer is in your care, custody or 

control at the premises described in 

the Declarations; and 

 (c) You have a contractual responsibility 

to pay for loss or damage to the 

trailer. 

 (2) We will not pay for any loss or damage 

that occurs: 

 (a) While the trailer is attached to any 

motor vehicle or motorized 

conveyance, whether or not the 

motor vehicle or motorized 

conveyance is in motion; 

 (b) During hitching or unhitching 

operations, or when a trailer 

becomes accidentally unhitched from 

a motor vehicle or motorized 

conveyance. 

 (3) The most we will pay for loss or damage 

under this Extension is $5,000, unless a 

higher limit is shown in the Declarations.

 (4) This insurance is excess over the 

amount due (whether you can collect on 

it or not) from any other insurance 

covering such property. 

 g. Business Personal Property Temporarily 

In Portable Storage Units 

 (1) You may extend the insurance that 

applies to Your Business Personal 

Property to apply to such property while 

temporarily stored in a portable storage 

unit (including a detached trailer) 

located within 100 feet of the building or 

structure described in the Declarations 

or within 100 feet of the premises 

described in the Declarations, whichever 

distance is greater. 

(2) If the applicable Covered Causes of 

Loss form or endorsement contains a 

limitation or exclusion concerning loss or 

damage from sand, dust, sleet, snow, 

ice or rain to property in a structure, 

such limitation or exclusion also applies 

to property in a portable storage unit. 

(3) Coverage under this Extension: 

(a) Will end 90 days after the business 

personal property has been placed in 

the storage unit; 

(b) 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 as 

of the time of loss or damage. 

(4) Under this Extension, the most we will 

pay for the total of all loss or damage to 

business personal property is $10,000 

(unless a higher limit is indicated in the 

Declarations for such Extension) 

regardless of the number of storage 

units. Such limit is part of, not in addition 

to, the applicable Limit of Insurance on 

Your Business Personal Property. 

Therefore, payment under this 

Extension will not increase the 

applicable Limit of Insurance on Your 

Business Personal Property. 

(5) This Extension does not apply to loss or 

damage otherwise covered under this 

Coverage Form or any endorsement to 

this Coverage Form or policy, and does 

not apply to loss or damage to the 

storage unit itself.

Each of these Extensions is additional 

insurance unless otherwise indicated. The 

Additional Condition, Coinsurance, does not 

apply to these Extensions. 

B. Exclusions And Limitations 

See applicable Causes Of Loss form as shown in 

the Declarations. 

C. Limits Of Insurance 

The most we will pay for loss or damage in any 

one occurrence is the applicable Limit Of 

Insurance shown in the Declarations. 

The most we will pay for loss or damage to 

outdoor signs, whether or not the sign is attached 

to a building, is $2,500 per sign in any one 

occurrence. 

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The amounts of insurance stated in the following 

Additional Coverages apply in accordance with the 

terms of such coverages and are separate from 

the Limit(s) Of Insurance shown in the 

Declarations for any other coverage: 

1. Fire Department Service Charge; 

2. Pollutant Clean-up And Removal; 

3. Increased Cost Of Construction; and 

4. Electronic Data. 

Payments under the Preservation Of Property 

Additional Coverage will not increase the 

applicable Limit of Insurance. 

D. Deductible 

In any one occurrence of loss or damage 

(hereinafter referred to as loss), we will first reduce 

the amount of loss if required by the Coinsurance 

Condition or the Agreed Value Optional Coverage. 

If the adjusted amount of loss is less than or equal 

to the Deductible, we will not pay for that loss. If 

the adjusted amount of loss exceeds the 

Deductible, we will then subtract the Deductible 

from the adjusted amount of loss and will pay the 

resulting amount or the Limit of Insurance, 

whichever is less. 

When the occurrence involves loss to more than 

one item of Covered Property and separate Limits 

of Insurance apply, the losses will not be 

combined in determining application of the 

Deductible. But the Deductible will be applied only 

once per occurrence. 

Example 1 

(This example assumes there is no Coinsurance 

penalty.) 

Deductible: $ 250

Limit of Insurance – Building 1: $ 60,000

Limit of Insurance – Building 2: $ 80,000

Loss to Building 1: $ 60,100

Loss to Building 2: $ 90,000

The amount of loss to Building 1 ($60,100) is less 

than the sum ($60,250) of the Limit of Insurance 

applicable to Building 1 plus the Deductible. 

The Deductible will be subtracted from the amount of 

loss in calculating the loss payable for Building 1: 

 $ 60,100 

 – 250 

 $ 59,850 Loss Payable – Building 1 

The Deductible applies once per occurrence and 

therefore is not subtracted in determining the amount 

of loss payable for Building 2. Loss payable for 

Building 2 is the Limit of Insurance of $80,000. 

Total amount of loss payable: 

$59,850 + $80,000 = $139,850 

Example 2 

(This example, too, assumes there is no Coinsurance 

penalty.) 

The Deductible and Limits of Insurance are the same 

as those in Example 1. 

Loss to Building 1: $ 70,000

(Exceeds Limit of Insurance plus Deductible)

Loss to Building 2: $ 90,000

 (Exceeds Limit of Insurance plus Deductible) 

Loss Payable – Building 1: $ 60,000

(Limit of Insurance)

Loss Payable – Building 2: $ 80,000

(Limit of Insurance)

Total amount of loss payable: $ 140,000

E. Loss Conditions 

The following conditions apply in addition to the 

Common Policy Conditions and the Commercial 

Property Conditions: 

 1. Abandonment 

There can be no abandonment of any property 

to us. 

 2. 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. The two 

appraisers will select an umpire. If they cannot 

agree, 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 there is an appraisal, we will still retain our 

right to deny the claim. 

 3. Duties In The Event Of Loss Or Damage 

 a. You must see that the following are done in 

the event of loss or damage to Covered 

Property: 

 (1) Notify the police if a law may have been 

broken. 

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(2) Give us prompt notice of the loss or 

damage. Include a description of the 

property involved. 

 (3) As soon as possible, give us a 

description of how, when and where the 

loss or damage occurred. 

 (4) Take all reasonable steps to protect the 

Covered Property from further damage, 

and keep a record of your expenses 

necessary to protect the Covered 

Property, for consideration in the 

settlement of the claim. This will not 

increase the Limit of Insurance. 

However, we will not pay for any 

subsequent loss or damage resulting 

from a cause of loss that is not a 

Covered Cause of Loss. Also, if 

feasible, set the damaged property 

aside and in the best possible order for 

examination. 

 (5) At our request, give us complete 

inventories of the damaged and 

undamaged property. Include quantities, 

costs, values and amount of loss 

claimed. 

 (6) As often as may be reasonably required, 

permit us to inspect the property proving 

the loss or damage and examine your 

books and records. 

Also, permit us to take samples of 

damaged and undamaged property for 

inspection, testing and analysis, and 

permit us to make copies from your 

books and records. 

 (7) 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. 

 (8) Cooperate with us in the investigation or 

settlement of the claim. 

 b. 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. 

 4. Loss Payment 

 a. In the event of loss or damage covered by 

this Coverage Form, at our option, we will 

either: 

 (1) Pay the value of lost or damaged 

property; 

 (2) Pay the cost of repairing or replacing the 

lost or damaged property, subject to b.

below; 

 (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, subject to b. below. 

We will determine the value of lost or 

damaged property, or the cost of its repair 

or replacement, in accordance with the 

applicable terms of the Valuation Condition 

in this Coverage Form or any applicable 

provision which amends or supersedes the 

Valuation Condition. 

 b. The cost to repair, rebuild or replace does 

not include the increased cost attributable 

to enforcement of or compliance with any 

ordinance or law regulating the 

construction, use or repair of any property. 

 c. We will give notice of our intentions within 

30 days after we receive the sworn proof of 

loss. 

 d. We will not pay you more than your 

financial interest in the Covered Property. 

 e. 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. 

 f. We may elect to defend you against suits 

arising from claims of owners of property. 

We will do this at our expense. 

 g. We will pay for covered loss or damage 

within 30 days after we receive the sworn 

proof of loss, if you have complied with all 

of the terms of this Coverage Part, and: 

 (1) We have reached agreement with you 

on the amount of loss; or 

 (2) An appraisal award has been made. 

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 h. A party wall is a wall that separates and is 

common to adjoining buildings that are 

owned by different parties. 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, the 

Valuation and Coinsurance Conditions 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. 

 5. 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. 

 6. Vacancy 

 a. Description Of Terms 

 (1) As used in this Vacancy Condition, the 

term building and the term vacant have 

the meanings set forth in (1)(a) and 

(1)(b) below: 

 (a) When this policy is issued to a 

tenant, and with respect to that 

tenant's interest in 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. 

 (b) 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: 

 (i) Rented to a lessee or sublessee 

and used by the lessee or 

sublessee to conduct its 

customary operations; and/or 

 (ii) Used by the building owner to 

conduct customary operations. 

 (2) Buildings under construction or 

renovation are not considered vacant. 

 b. Vacancy Provisions 

If the building where loss or damage occurs 

has been vacant for more than 60 

consecutive days before that loss or 

damage occurs: 

 (1) We will not pay for any loss or damage 

caused by any of the following, even if 

they are Covered Causes of Loss: 

 (a) Vandalism; 

 (b) Sprinkler leakage, unless you have 

protected the system against 

freezing; 

 (c) Building glass breakage; 

 (d) Water damage; 

 (e) Theft; or 

 (f) Attempted theft. 

 (2) With respect to Covered Causes of Loss 

other than those listed in b.(1)(a)

through b.(1)(f) above, we will reduce 

the amount we would otherwise pay for 

the loss or damage by 15%. 

 7. Valuation 

We will determine the value of Covered 

Property in the event of loss or damage as 

follows: 

 a. At actual cash value as of the time of loss 

or damage, except as provided in b., c., d.

and e. below. 

 b. If the Limit of Insurance for Building 

satisfies the Additional Condition, 

Coinsurance, and the cost to repair or 

replace the damaged building property is 

$2,500 or less, we will pay the cost of 

building repairs or replacement. 

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The cost of building repairs or replacement 

does not include the increased cost 

attributable to enforcement of or 

compliance with any ordinance or law 

regulating the construction, use or repair of 

any property. 

However, the following property will be 

valued at the actual cash value, even when 

attached to the building: 

 (1) Awnings or floor coverings; 

 (2) Appliances for refrigerating, ventilating, 

cooking, dishwashing or laundering; or 

 (3) Outdoor equipment or furniture. 

 c. "Stock" you have sold but not delivered at 

the selling price less discounts and 

expenses you otherwise would have had. 

 d. Glass at the cost of replacement with 

safety-glazing material if required by law. 

 e. Tenants' Improvements and Betterments at: 

 (1) Actual cash value of the lost or 

damaged property if you make repairs 

promptly. 

 (2) A proportion of your original cost if you 

do not make repairs promptly. We will 

determine the proportionate value as 

follows: 

 (a) Multiply the original cost by the 

number of days from the loss or 

damage to the expiration of the 

lease; and 

 (b) Divide the amount determined in (a)

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. 

 (3) Nothing if others pay for repairs or 

replacement. 

F. Additional Conditions 

The following conditions apply in addition to the 

Common Policy Conditions and the Commercial 

Property Conditions: 

 1. Coinsurance 

If a Coinsurance percentage is shown in the 

Declarations, the following condition applies: 

 a. We will not pay the full amount of any loss if 

the value of Covered Property at the time of 

loss times the Coinsurance percentage 

shown for it in the Declarations is greater 

than the Limit of Insurance for the property. 

Instead, we will determine the most we will 

pay using the following steps: 

 (1) Multiply the value of Covered Property 

at the time of loss by the Coinsurance 

percentage; 

 (2) Divide the Limit of Insurance of the 

property by the figure determined in 

Step (1); 

 (3) Multiply the total amount of loss, before 

the application of any deductible, by the 

figure determined in Step (2); and 

 (4) Subtract the deductible from the figure 

determined in Step (3). 

We will pay the amount determined in Step 

(4) or the Limit of Insurance, whichever is 

less. For the remainder, you will either have 

to rely on other insurance or absorb the 

loss yourself. 

Example 1 (Underinsurance) 

When: The value of the property is: $ 250,000

 The Coinsurance percentage 

for it is: 80%

The Limit of Insurance for it is: $ 100,000

The Deductible is: $ 250

 The amount of loss is: $ 40,000

Step (1): $250,000 x 80% = $200,000 

 (the minimum amount of insurance to 

meet your Coinsurance requirements) 

Step (2): $100,000 ÷ $200,000 = .50 

Step (3): $40,000 x .50 = $20,000 

Step (4): $20,000 – $250 = $19,750 

We will pay no more than $19,750. The remaining 

$20,250 is not covered. 

Example 2 (Adequate Insurance) 

When: The value of the property is: $ 250,000

 The Coinsurance percentage 

for it is: 80%

The Limit of Insurance for it is: $ 200,000

 The Deductible is: $ 250

The amount of loss is: $ 40,000

The minimum amount of insurance to meet your 

Coinsurance requirement is $200,000 ($250,000 x 

80%). Therefore, the Limit of Insurance in this 

example is adequate, and no penalty applies. We will 

pay no more than $39,750 ($40,000 amount of loss 

minus the deductible of $250). 

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 b. If one Limit of Insurance applies to two or 

more separate items, this condition will 

apply to the total of all property to which the 

limit applies. 

Example 3 

When: The value of the property is: 

 Building at Location 1: $ 75,000

 Building at Location 2: $ 100,000

 Personal Property 

at Location 2: $ 75,000

 $ 250,000

 The Coinsurance percentage 

for it is: 90%

 The Limit of Insurance for 

Buildings and Personal Property 

at Locations 1 and 2 is: $ 180,000

 The Deductible is: $ 1,000

 The amount of loss is: 

 Building at Location 2: $ 30,000

 Personal Property 

at Location 2: $ 20,000

 $ 50,000

Step (1): $250,000 x 90% = $225,000 

 (the minimum amount of insurance to 

meet your Coinsurance requirements 

and to avoid the penalty shown below) 

Step (2): $180,000 ÷ $225,000 = .80 

Step (3): $50,000 x .80 = $40,000 

Step (4): $40,000 – $1,000 = $39,000 

We will pay no more than $39,000. The remaining 

$11,000 is not covered. 

 2. Mortgageholders 

 a. The term mortgageholder includes trustee. 

 b. We will pay for covered loss of or damage 

to buildings or structures to each 

mortgageholder shown in the Declarations 

in their order of precedence, as interests 

may appear. 

 c. The mortgageholder has the right to receive 

loss payment even if the mortgageholder 

has started foreclosure or similar action on 

the building or structure. 

d. If we deny your claim because of your acts 

or because you have failed to comply with 

the terms of this Coverage Part, the 

mortgageholder will still have the right to 

receive loss payment if the mortgageholder: 

 (1) Pays any premium due under this 

Coverage Part at our request if you 

have failed to do so; 

 (2) Submits a signed, sworn proof of loss 

within 60 days after receiving notice 

from us of your failure to do so; and 

 (3) Has notified us of any change in 

ownership, occupancy or substantial 

change in risk known to the 

mortgageholder. 

All of the terms of this Coverage Part will 

then apply directly to the mortgageholder. 

 e. If we pay the mortgageholder for any loss 

or damage and deny payment to you 

because of your acts or because you have 

failed to comply with the terms of this 

Coverage Part: 

 (1) The mortgageholder's rights under the 

mortgage will be transferred to us to the 

extent of the amount we pay; and 

 (2) 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. 

 f. If we cancel this policy, we will give written 

notice to the mortgageholder at least: 

 (1) 10 days before the effective date of 

cancellation if we cancel for your 

nonpayment of premium; or 

 (2) 30 days before the effective date of 

cancellation if we cancel for any other 

reason. 

g. 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. 

G. Optional Coverages 

If shown as applicable in the Declarations, the 

following Optional Coverages apply separately to 

each item: 

 1. Agreed Value 

 a. The Additional Condition, Coinsurance, 

does not apply to Covered Property to 

which this Optional Coverage applies. We 

will pay no more for loss of or damage to 

that property than the proportion that the 

Limit of Insurance under this Coverage Part 

for the property bears to the Agreed Value 

shown for it in the Declarations. 

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 b. If the expiration date for this Optional 

Coverage shown in the Declarations is not 

extended, the Additional Condition, 

Coinsurance, is reinstated and this Optional 

Coverage expires. 

 c. The terms of this Optional Coverage apply 

only to loss or damage that occurs: 

 (1) On or after the effective date of this 

Optional Coverage; and 

 (2) Before the Agreed Value expiration date 

shown in the Declarations or the policy 

expiration date, whichever occurs first. 

 2. Inflation Guard 

 a. The Limit of Insurance for property to which 

this Optional Coverage applies will 

automatically increase by the annual 

percentage shown in the Declarations. 

 b. The amount of increase will be: 

 (1) The Limit of Insurance that applied on 

the most recent of the policy inception 

date, the policy anniversary date, or any 

other policy change amending the Limit 

of Insurance, times 

 (2) The percentage of annual increase 

shown in the Declarations, expressed as 

a decimal (example: 8% is .08), times 

 (3) The number of days since the beginning 

of the current policy year or the effective 

date of the most recent policy change 

amending the Limit of Insurance, divided 

by 365. 

Example 

If: The applicable Limit of Insurance is: $ 100,000

 The annual percentage increase is: 8%

 The number of days since the 

beginning of the policy year 

(or last policy change) is: 146

 The amount of increase is: 

$100,000 x .08 x 146 ÷ 365 = $ 3,200

 3. Replacement Cost 

 a. Replacement Cost (without deduction for 

depreciation) replaces Actual Cash Value in 

the Valuation Loss Condition of this 

Coverage Form. 

 b. This Optional Coverage does not apply to: 

 (1) Personal property of others; 

 (2) Contents of a residence; 

 (3) Works of art, antiques or rare articles, 

including etchings, pictures, statuary, 

marbles, bronzes, porcelains and bric-abrac; or 

 (4) "Stock", unless the Including "Stock" 

option is shown in the Declarations. 

Under the terms of this Replacement Cost 

Optional Coverage, tenants' improvements 

and betterments are not considered to be 

the personal property of others. 

 c. You may make a claim for loss or damage 

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 or damage settled on an actual cash 

value basis, you may still make a claim for 

the additional coverage this Optional 

Coverage provides if you notify us of your 

intent to do so within 180 days after the loss 

or damage. 

 d. We will not pay on a replacement cost basis 

for any loss or damage: 

 (1) Until the lost or damaged property is 

actually repaired or replaced; and 

 (2) Unless the repair or replacement is 

made as soon as reasonably possible 

after the loss or damage. 

With respect to tenants' improvements and 

betterments, the following also apply: 

 (3) If the conditions in d.(1) and d.(2) above 

are not met, the value of tenants' 

improvements and betterments will be 

determined as a proportion of your 

original cost, as set forth in the 

Valuation Loss Condition of this 

Coverage Form; and 

 (4) We will not pay for loss or damage to 

tenants' improvements and betterments 

if others pay for repairs or replacement.

 e. We will not pay more for loss or damage on 

a replacement cost basis than the least of 

(1), (2) or (3), subject to f. below: 

 (1) The Limit of Insurance applicable to the 

lost or damaged property; 

 (2) The cost to replace the lost or damaged 

property with other property: 

 (a) Of comparable material and quality; 

and 

 (b) Used for the same purpose; or 

 (3) The amount actually spent that is 

necessary to repair or replace the lost or 

damaged property. 

If a building is rebuilt at a new premises, the 

cost described in e.(2) above is limited to 

the cost which would have been incurred if 

the building had been rebuilt at the original 

premises. 

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 f. The cost of repair or replacement does not 

include the increased cost attributable to 

enforcement of or compliance with any 

ordinance or law regulating the 

construction, use or repair of any property. 

 4. Extension Of Replacement Cost To 

Personal Property Of Others 

 a. If the Replacement Cost Optional Coverage 

is shown as applicable in the Declarations, 

then this Extension may also be shown as 

applicable. If the Declarations show this 

Extension as applicable, then Paragraph 

3.b.(1) of the Replacement Cost Optional 

Coverage is deleted and all other provisions 

of the Replacement Cost Optional 

Coverage apply to replacement cost on 

personal property of others. 

 b. With respect to replacement cost on the 

personal property of others, the following 

limitation applies: 

If an item(s) of personal property of others 

is subject to a written contract which 

governs your liability for loss or damage 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. 

H. Definitions 

 1. "Fungus" means any type or form of fungus, 

including mold or mildew, and any mycotoxins, 

spores, scents or by-products produced or 

released by fungi. 

 2. "Pollutants" means 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. 

 3. "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. 

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COMMERCIAL PROPERTY

CP 00 30 10 12

CP 00 30 10 12 © Insurance Services Office, Inc., 2011 Page 1 of 9

BUSINESS INCOME (AND EXTRA EXPENSE) 

COVERAGE FORM 

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

what is and is not covered. 

Throughout this policy, the words "you" and "your" refer to the Named Insured shown in the Declarations. The 

words "we", "us" and "our" refer to the company providing this insurance. 

Other words and phrases that appear in quotation marks have special meaning. Refer to Section F. Definitions. 

A. Coverage 

 1. Business Income 

Business Income means the: 

 a. Net Income (Net Profit or Loss before 

income taxes) that would have been earned 

or incurred; and 

b. Continuing normal operating expenses 

incurred, including payroll. 

For manufacturing risks, Net Income includes 

the net sales value of production. 

Coverage is provided as described and limited 

below for one or more of the following options 

for which a Limit Of Insurance is shown in the 

Declarations: 

 (1) Business Income Including "Rental 

Value". 

 (2) Business Income Other Than "Rental 

Value". 

 (3) "Rental Value". 

If option (1) above is selected, the term 

Business Income will include "Rental Value". If 

option (3) above is selected, the term Business 

Income will mean "Rental Value" only. 

If Limits of Insurance are shown under more 

than one of the above options, the provisions 

of this Coverage Part apply separately to each. 

We will pay for the actual loss of Business 

Income you sustain due to the necessary 

"suspension" of your "operations" during the 

"period of restoration". The "suspension" must 

be caused by direct physical loss of or damage 

to property at premises which are described in 

the Declarations and for which a Business 

Income Limit Of Insurance is shown in the 

Declarations. The loss or damage must be 

caused by or result from a Covered Cause of 

Loss. With respect to loss of or damage to 

personal property in the open or personal 

property in a vehicle, the described premises 

include the area within 100 feet of such 

premises. 

With respect to the requirements set forth in 

the preceding paragraph, if you occupy only 

part of a building, your premises means: 

 (a) The portion of the building which you 

rent, lease or occupy; 

(b) The area within 100 feet of the 

building or within 100 feet of the 

premises described in the 

Declarations, whichever distance is 

greater (with respect to loss of or 

damage to personal property in the 

open or personal property in a 

vehicle); and 

 (c) Any area within the building or at the 

described premises, if that area 

services, or is used to gain access 

to, the portion of the building which 

you rent, lease or occupy. 

 2. Extra Expense 

 a. Extra Expense Coverage is provided at the 

premises described in the Declarations only 

if the Declarations show that Business 

Income Coverage applies at that premises. 

b. Extra Expense means necessary expenses 

you incur during the "period of restoration" 

that you would not have incurred if there 

had been no direct physical loss or damage 

to property caused by or resulting from a 

Covered Cause of Loss. 

We will pay Extra Expense (other than the 

expense to repair or replace property) to: 

 (1) Avoid or minimize the "suspension" of 

business and to continue operations at 

the described premises or at 

replacement premises or temporary 

locations, including relocation expenses 

and costs to equip and operate the 

replacement location or temporary 

location. 

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(2) Minimize the "suspension" of business if 

you cannot continue "operations". 

We will also pay Extra Expense to repair or 

replace property, but only to the extent it 

reduces the amount of loss that otherwise 

would have been payable under this 

Coverage Form. 

 3. Covered Causes Of Loss, Exclusions And 

Limitations 

See applicable Causes Of Loss form as shown 

in the Declarations. 

 4. Additional Limitation – Interruption Of 

Computer Operations 

 a. Coverage for Business Income does not 

apply when a "suspension" of "operations" 

is caused by destruction or corruption of 

electronic data, or any loss or damage to 

electronic data, except as provided under 

the Additional Coverage, Interruption Of 

Computer Operations.

 b. Coverage for Extra Expense does not apply 

when action is taken to avoid or minimize a 

"suspension" of "operations" caused by 

destruction or corruption of electronic data, 

or any loss or damage to electronic data, 

except as provided under the Additional 

Coverage, Interruption Of Computer 

Operations. 

 c. 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. 

 d. This Additional Limitation does not apply 

when loss or damage to electronic data 

involves only electronic data which is 

integrated in and operates or controls a 

building's elevator, lighting, heating, 

ventilation, air conditioning or security 

system. 

 5. Additional Coverages 

a. Civil Authority 

In this Additional Coverage, Civil Authority, 

the described premises are premises to 

which this Coverage Form applies, as 

shown in the Declarations. 

When a Covered Cause of Loss causes 

damage to property other than property at 

the described premises, we will pay for the 

actual loss of Business Income you sustain 

and necessary Extra Expense caused by 

action of civil authority that prohibits access 

to the described premises, provided that 

both of the following apply: 

(1) Access to the area immediately 

surrounding the damaged property is 

prohibited by civil authority as a result of 

the damage, and the described 

premises are within that area but are not 

more than one mile from the damaged 

property; and 

(2) The action of civil authority is taken in 

response to dangerous physical 

conditions resulting from the damage or 

continuation of the Covered Cause of 

Loss that caused the damage, or the 

action is taken to enable a civil authority 

to have unimpeded access to the 

damaged property. 

Civil Authority Coverage for Business 

Income will begin 72 hours after the time of 

the first action of civil authority that prohibits 

access to the described premises and will 

apply for a period of up to four consecutive 

weeks from the date on which such 

coverage began. 

Civil Authority Coverage for Extra Expense 

will begin immediately after the time of the 

first action of civil authority that prohibits 

access to the described premises and will 

end: 

 (1) Four consecutive weeks after the date 

of that action; or 

 (2) When your Civil Authority Coverage for 

Business Income ends; 

whichever is later. 

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 b. Alterations And New Buildings 

We will pay for the actual loss of Business 

Income you sustain and necessary Extra 

Expense you incur due to direct physical 

loss or damage at the described premises 

caused by or resulting from any Covered 

Cause of Loss to: 

 (1) New buildings or structures, whether 

complete or under construction; 

 (2) Alterations or additions to existing 

buildings or structures; and 

 (3) Machinery, equipment, supplies or 

building materials located on or within 

100 feet of the described premises and: 

 (a) Used in the construction, alterations 

or additions; or 

 (b) Incidental to the occupancy of new 

buildings. 

If such direct physical loss or damage 

delays the start of "operations", the "period 

of restoration" for Business Income 

Coverage will begin on the date 

"operations" would have begun if the direct 

physical loss or damage had not occurred. 

 c. Extended Business Income 

 (1) Business Income Other Than "Rental 

Value" 

If the necessary "suspension" of your 

"operations" produces a Business 

Income loss payable under this policy, 

we will pay for the actual loss of 

Business Income you incur during the 

period that: 

 (a) Begins on the date property (except 

"finished stock") is actually repaired, 

rebuilt or replaced and "operations" 

are resumed; and 

 (b) Ends on the earlier of: 

 (i) The date you could restore your 

"operations", with reasonable 

speed, to the level which would 

generate the business income 

amount that would have existed if 

no direct physical loss or damage 

had occurred; or 

 (ii) 60 consecutive days after the 

date determined in (1)(a) above. 

However, Extended Business Income 

does not apply to loss of Business 

Income incurred as a result of 

unfavorable business conditions caused 

by the impact of the Covered Cause of 

Loss in the area where the described 

premises are located. 

Loss of Business Income must be 

caused by direct physical loss or 

damage at the described premises 

caused by or resulting from any Covered 

Cause of Loss. 

 (2) "Rental Value" 

If the necessary "suspension" of your 

"operations" produces a "Rental Value" 

loss payable under this policy, we will 

pay for the actual loss of "Rental Value" 

you incur during the period that: 

 (a) Begins on the date property is 

actually repaired, rebuilt or replaced 

and tenantability is restored; and 

(b) Ends on the earlier of: 

 (i) The date you could restore tenant 

occupancy, with reasonable 

speed, to the level which would 

generate the "Rental Value" that 

would have existed if no direct 

physical loss or damage had 

occurred; or 

 (ii) 60 consecutive days after the 

date determined in (2)(a) above. 

However, Extended Business Income 

does not apply to loss of "Rental Value" 

incurred as a result of unfavorable 

business conditions caused by the 

impact of the Covered Cause of Loss in 

the area where the described premises 

are located. 

Loss of "Rental Value" must be caused 

by direct physical loss or damage at the 

described premises caused by or 

resulting from any Covered Cause of 

Loss. 

 d. Interruption Of Computer Operations 

 (1) Under this Additional Coverage, 

electronic data has the meaning 

described under Additional Limitation – 

Interruption Of Computer Operations. 

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 (2) Subject to all provisions of this 

Additional Coverage, you may extend 

the insurance that applies to Business 

Income and Extra Expense to apply to a 

"suspension" of "operations" caused by 

an interruption in computer operations 

due to destruction or corruption of 

electronic data due to a Covered Cause 

of Loss. However, we will not provide 

coverage under this Additional 

Coverage when the Additional Limitation 

– Interruption Of Computer Operations 

does not apply based on Paragraph 

A.4.d. therein. 

 (3) With respect to the coverage provided 

under this Additional Coverage, the 

Covered Causes of Loss are subject to 

the following: 

 (a) If the Causes Of Loss – Special 

Form applies, coverage under this 

Additional Coverage, Interruption Of 

Computer Operations, is limited to 

the "specified causes of loss" as 

defined in that form and Collapse as 

set forth in that form. 

(b) If the Causes Of Loss – Broad Form 

applies, coverage under this 

Additional Coverage, Interruption Of 

Computer Operations, includes 

Collapse as set forth in that form. 

 (c) If the Causes Of Loss form is 

endorsed to add a Covered Cause of 

Loss, the additional Covered Cause 

of Loss does not apply to the 

coverage provided under this 

Additional Coverage, Interruption Of 

Computer Operations. 

 (d) The Covered Causes of Loss include 

a virus, harmful code or similar 

instruction introduced into or enacted 

on a computer system (including 

electronic data) or a network to 

which it is connected, designed to 

damage or destroy any part of the 

system or disrupt its normal 

operation. But there is no coverage 

for an interruption related to 

manipulation of a computer system 

(including electronic data) by any 

employee, including a temporary or 

leased employee, or by an entity 

retained by you or for you to inspect, 

design, install, maintain, repair or 

replace that system. 

 (4) The most we will pay under this 

Additional Coverage, Interruption Of 

Computer Operations, is $2,500 (unless 

a higher limit is shown in the 

Declarations) for all loss sustained and 

expense incurred in any one policy year, 

regardless of the number of 

interruptions or the number of premises, 

locations or computer systems involved. 

If loss payment relating to the first 

interruption does not exhaust this 

amount, then the balance is available for 

loss or expense sustained or incurred as 

a result of subsequent interruptions in 

that policy year. A balance remaining at 

the end of a policy year does not 

increase the amount of insurance in the 

next policy year. With respect to any 

interruption which begins in one policy 

year and continues or results in 

additional loss or expense in a 

subsequent policy year(s), all loss and 

expense is deemed to be sustained or 

incurred in the policy year in which the 

interruption began. 

 (5) This Additional Coverage, Interruption 

Of Computer Operations, does not apply 

to loss sustained or expense incurred 

after the end of the "period of 

restoration", even if the amount of 

insurance stated in (4) above has not 

been exhausted. 

 6. Coverage Extension 

If a Coinsurance percentage of 50% or more is 

shown in the Declarations, you may extend the 

insurance provided by this Coverage Part as 

follows: 

Newly Acquired Locations 

 a. You may extend your Business Income and 

Extra Expense Coverages to apply to 

property at any location you acquire other 

than fairs or exhibitions. 

 b. The most we will pay under this Extension, 

for the sum of Business Income loss and 

Extra Expense incurred, is $100,000 at 

each location, unless a higher limit is shown 

in the Declarations. 

 c. Insurance under this Extension for each 

newly acquired location will end when any 

of the following first occurs: 

 (1) This policy expires; 

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 (2) 30 days expire after you acquire or 

begin to construct the property; or 

 (3) You report values to us. 

We will charge you additional premium for 

values reported from the date you acquire 

the property. 

The Additional Condition, Coinsurance, does 

not apply to this Extension. 

B. Limits Of Insurance 

The most we will pay for loss in any one 

occurrence is the applicable Limit Of Insurance 

shown in the Declarations. 

Payments under the following coverages will not 

increase the applicable Limit of Insurance: 

 1. Alterations And New Buildings; 

 2. Civil Authority; 

 3. Extra Expense; or 

 4. Extended Business Income. 

The amounts of insurance stated in the 

Interruption Of Computer Operations Additional 

Coverage and the Newly Acquired Locations 

Coverage Extension apply in accordance with the 

terms of those coverages and are separate from 

the Limit(s) Of Insurance shown in the 

Declarations for any other coverage. 

C. Loss Conditions 

The following conditions apply in addition to the 

Common Policy Conditions and the Commercial 

Property Conditions: 

 1. Appraisal 

If we and you disagree on the amount of Net 

Income and operating expense 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. 

The two appraisers will select an umpire. If 

they cannot agree, either may request that 

selection be made by a judge of a court having 

jurisdiction. The appraisers will state separately 

the amount of Net Income and operating 

expense or 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 there is an appraisal, we will still retain our 

right to deny the claim. 

 2. Duties In The Event Of Loss 

 a. You must see that the following are done in 

the event of loss: 

 (1) Notify the police if a law may have been 

broken. 

 (2) Give us prompt notice of the direct 

physical loss or damage. Include a 

description of the property involved. 

 (3) As soon as possible, give us a 

description of how, when and where the 

direct physical loss or damage occurred. 

(4) Take all reasonable steps to protect the 

Covered Property from further damage, 

and keep a record of your expenses 

necessary to protect the Covered 

Property, for consideration in the 

settlement of the claim. This will not 

increase the Limit of Insurance. 

However, we will not pay for any 

subsequent loss or damage resulting 

from a cause of loss that is not a 

Covered Cause of Loss. Also, if 

feasible, set the damaged property 

aside and in the best possible order for 

examination. 

 (5) As often as may be reasonably required, 

permit us to inspect the property proving 

the loss or damage and examine your 

books and records. 

Also permit us to take samples of 

damaged and undamaged property for 

inspection, testing and analysis, and 

permit us to make copies from your 

books and records. 

 (6) 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. 

 (7) Cooperate with us in the investigation or 

settlement of the claim. 

 (8) If you intend to continue your business, 

you must resume all or part of your 

"operations" as quickly as possible. 

 b. 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. 

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 3. Loss Determination 

 a. The amount of Business Income loss will be 

determined based on: 

 (1) The Net Income of the business before 

the direct physical loss or damage 

occurred; 

 (2) The likely Net Income of the business if 

no physical loss or damage had 

occurred, but not including 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; 

 (3) The operating expenses, including 

payroll expenses, necessary to resume 

"operations" with the same quality of 

service that existed just before the direct 

physical loss or damage; and 

(4) Other relevant sources of information, 

including: 

 (a) Your financial records and 

accounting procedures; 

 (b) Bills, invoices and other vouchers; 

and 

 (c) Deeds, liens or contracts. 

 b. The amount of Extra Expense will be 

determined based on: 

 (1) All expenses that exceed the normal 

operating expenses that would have 

been incurred by "operations" during the 

"period of restoration" if no direct 

physical loss or damage had occurred. 

We will deduct from the total of such 

expenses: 

 (a) The salvage value that remains of 

any property bought for temporary 

use during the "period of restoration", 

once "operations" are resumed; and 

 (b) Any Extra Expense that is paid for by 

other insurance, except for insurance 

that is written subject to the same 

plan, terms, conditions and 

provisions as this insurance; and 

 (2) Necessary expenses that reduce the 

Business Income loss that otherwise 

would have been incurred. 

 c. Resumption Of Operations 

We will reduce the amount of your: 

 (1) Business Income loss, other than Extra 

Expense, to the extent you can resume 

your "operations", in whole or in part, by 

using damaged or undamaged property 

(including merchandise or stock) at the 

described premises or elsewhere. 

 (2) Extra Expense loss to the extent you 

can return "operations" to normal and 

discontinue such Extra Expense. 

 d. If you do not resume "operations", or do not 

resume "operations" as quickly as possible, 

we will pay based on the length of time it 

would have taken to resume "operations" as 

quickly as possible. 

 4. Loss Payment 

We will pay for covered loss within 30 days 

after we receive the sworn proof of loss, if you 

have complied with all of the terms of this 

Coverage Part, and: 

 a. We have reached agreement with you on 

the amount of loss; or 

 b. An appraisal award has been made. 

D. Additional Condition 

COINSURANCE 

If a Coinsurance percentage is shown in the 

Declarations, the following condition applies in 

addition to the Common Policy Conditions and the 

Commercial Property Conditions. 

We will not pay the full amount of any Business 

Income loss if the Limit of Insurance for Business 

Income is less than: 

 1. The Coinsurance percentage shown for 

Business Income in the Declarations; times 

 2. The sum of: 

 a. The Net Income (Net Profit or Loss before 

income taxes), and 

 b. Operating expenses, including payroll 

expenses, 

that would have been earned or incurred (had 

no loss occurred) by your "operations" at the 

described premises for the 12 months following 

the inception, or last previous anniversary date, 

of this policy (whichever is later). 

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Instead, we will determine the most we will pay 

using the following steps: 

Step (1): Multiply the Net Income and operating

expense for the 12 months following the

inception, or last previous anniversary 

date, of this policy by the Coinsurance 

percentage; 

Step (2): Divide the Limit of Insurance for the

described premises by the figure

determined in Step (1); and 

Step (3): Multiply the total amount of loss by the

figure determined in Step (2).

We will pay the amount determined in Step (3) or 

the limit of insurance, whichever is less. For the 

remainder, you will either have to rely on other 

insurance or absorb the loss yourself. 

In determining operating expenses for the purpose 

of applying the Coinsurance condition, the 

following expenses, if applicable, shall be 

deducted from the total of all operating expenses: 

 (1) Prepaid freight – outgoing; 

 (2) Returns and allowances; 

 (3) Discounts; 

 (4) Bad debts; 

 (5) Collection expenses; 

 (6) Cost of raw stock and factory supplies 

consumed (including transportation 

charges); 

 (7) Cost of merchandise sold (including 

transportation charges); 

 (8) Cost of other supplies consumed 

(including transportation charges); 

 (9) Cost of services purchased from 

outsiders (not employees) to resell, that 

do not continue under contract; 

 (10) Power, heat and refrigeration expenses 

that do not continue under contract (if 

Form CP 15 11 is attached); 

 (11) All payroll expenses or the amount of 

payroll expense excluded (if Form CP 

15 10 is attached); and 

 (12) Special deductions for mining properties 

(royalties unless specifically included in 

coverage; actual depletion commonly 

known as unit or cost depletion – not 

percentage depletion; welfare and 

retirement fund charges based on 

tonnage; hired trucks). 

Example 1 (Underinsurance) 

When: The Net Income and operating 

expenses for the 12 months 

following the inception, or last 

previous anniversary date, of 

this policy at the described 

premises would have been: $ 400,000

 The Coinsurance percentage is: 50%

The Limit of Insurance is: $ 150,000

The amount of loss is: $ 80,000

Step (1): $400,000 x 50% = $200,000 

 (the minimum amount of insurance to 

meet your Coinsurance requirements)

Step (2): $150,000 ÷ $200,000 = .75 

Step (3): $80,000 x .75 = $60,000 

We will pay no more than $60,000. The remaining 

$20,000 is not covered. 

Example 2 (Adequate Insurance) 

When: The Net Income and operating 

expenses for the 12 months 

following the inception, or last 

previous anniversary date, of 

this policy at the described 

premises would have been: $ 400,000

The Coinsurance percentage is: 50%

The Limit of Insurance is: $ 200,000

 The amount of loss is: $ 80,000

The minimum amount of insurance to meet your 

Coinsurance requirement is $200,000 ($400,000 x 

50%). Therefore, the Limit of Insurance in this 

example is adequate and no penalty applies. We will 

pay no more than $80,000 (amount of loss). 

This condition does not apply to Extra Expense 

Coverage. 

E. Optional Coverages 

If shown as applicable in the Declarations, the 

following Optional Coverages apply separately to 

each item. 

 1. Maximum Period Of Indemnity 

 a. The Additional Condition, Coinsurance, 

does not apply to this Coverage Form at the 

described premises to which this Optional 

Coverage applies. 

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 b. The most we will pay for the total of 

Business Income loss and Extra Expense is 

the lesser of: 

 (1) The amount of loss sustained and 

expenses incurred during the 120 days 

immediately following the beginning of 

the "period of restoration"; or 

 (2) The Limit Of Insurance shown in the 

Declarations. 

 2. Monthly Limit Of Indemnity 

 a. The Additional Condition, Coinsurance, 

does not apply to this Coverage Form at the 

described premises to which this Optional 

Coverage applies. 

 b. The most we will pay for loss of Business 

Income in each period of 30 consecutive 

days after the beginning of the "period of 

restoration" is: 

 (1) The Limit of Insurance, multiplied by 

 (2) The fraction shown in the Declarations 

for this Optional Coverage. 

Example 

When: The Limit of Insurance is: $ 120,000

 The fraction shown in the 

Declarations for this Optional 

Coverage is: 1/4

 The most we will pay for loss in 

each period of 30 consecutive 

days is: $ 30,000

 ($120,000 x 1/4 = $30,000) 

 If, in this example, the actual 

amount of loss is: 

 Days 1–30: $ 40,000

 Days 31–60: $ 20,000

 Days 61–90: $ 30,000

 $ 90,000

 We will pay: 

 Days 1–30: $ 30,000

 Days 31–60: $ 20,000

 Days 61–90: $ 30,000

 $ 80,000

 The remaining $10,000 is not covered.

 3. Business Income Agreed Value 

 a. To activate this Optional Coverage: 

 (1) A Business Income Report/Work Sheet 

must be submitted to us and must show 

financial data for your "operations": 

 (a) During the 12 months prior to the 

date of the Work Sheet; and 

 (b) Estimated for the 12 months 

immediately following the inception 

of this Optional Coverage. 

(2) The Declarations must indicate that the 

Business Income Agreed Value Optional 

Coverage applies, and an Agreed Value 

must be shown in the Declarations. The 

Agreed Value should be at least equal 

to: 

 (a) The Coinsurance percentage shown 

in the Declarations; multiplied by 

 (b) The amount of Net Income and 

operating expenses for the following 

12 months you report on the Work 

Sheet. 

 b. The Additional Condition, Coinsurance, is 

suspended until: 

 (1) 12 months after the effective date of this 

Optional Coverage; or 

 (2) The expiration date of this policy; 

whichever occurs first. 

 c. We will reinstate the Additional Condition, 

Coinsurance, automatically if you do not 

submit a new Work Sheet and Agreed 

Value: 

 (1) Within 12 months of the effective date of 

this Optional Coverage; or 

 (2) When you request a change in your 

Business Income Limit of Insurance. 

 d. If the Business Income Limit of Insurance is 

less than the Agreed Value, we will not pay 

more of any loss than the amount of loss 

multiplied by: 

 (1) The Business Income Limit of 

Insurance; divided by 

 (2) The Agreed Value. 

Example 

When: The Limit of Insurance is: $ 100,000

The Agreed Value is: $ 200,000

 The amount of loss is: $ 80,000

Step (1): $100,000 ÷ $200,000 = .50 

Step (2): .50 x $80,000 = $40,000 

We will pay $40,000. The remaining $40,000 is not 

covered. 

 4. Extended Period Of Indemnity 

Under Paragraph A.5.c., Extended Business 

Income, the number 60 in Subparagraphs 

(1)(b) and (2)(b) is replaced by the number 

shown in the Declarations for this Optional 

Coverage. 

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CP 00 30 10 12 © Insurance Services Office, Inc., 2011 Page 9 of 9

F. Definitions 

 1. "Finished stock" means stock you have 

manufactured. 

"Finished stock" also includes whiskey and 

alcoholic products being aged, unless there is 

a Coinsurance percentage shown for Business 

Income in the Declarations. 

"Finished stock" does not include stock you 

have manufactured that is held for sale on the 

premises of any retail outlet insured under this 

Coverage Part. 

 2. "Operations" means: 

 a. Your business activities occurring at the 

described premises; and 

 b. The tenantability of the described premises, 

if coverage for Business Income Including 

"Rental Value" or "Rental Value" applies. 

 3. "Period of restoration" means the period of time 

that: 

 a. Begins: 

 (1) 72 hours after the time of direct physical 

loss or damage for Business Income 

Coverage; or 

 (2) Immediately after the time of direct 

physical loss or damage for Extra 

Expense Coverage; 

caused by or resulting from any Covered 

Cause of Loss at the described premises; 

and 

b. Ends on the earlier of: 

 (1) The date when the property at the 

described premises should be repaired, 

rebuilt or replaced with reasonable 

speed and similar quality; or 

 (2) The date when business is resumed at a 

new permanent location. 

"Period of restoration" does not include any 

increased period required due to the 

enforcement of or compliance with any 

ordinance or law that: 

 (1) Regulates the construction, use or 

repair, or requires the tearing down, of 

any property; or 

 (2) 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 cut 

short the "period of restoration". 

 4. "Pollutants" means 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. 

 5. "Rental Value" means Business Income that 

consists of: 

 a. Net Income (Net Profit or Loss before 

income taxes) that would have been earned 

or incurred as rental income from tenant 

occupancy of the premises described in the 

Declarations as furnished and equipped by 

you, including fair rental value of any 

portion of the described premises which is 

occupied by you; and 

b. Continuing normal operating expenses 

incurred in connection with that premises, 

including: 

 (1) Payroll; and 

(2) The amount of charges which are the 

legal obligation of the tenant(s) but 

would otherwise be your obligations. 

 6. "Suspension" means: 

 a. The slowdown or cessation of your 

business activities; or

 b. That a part or all of the described premises 

is rendered untenantable, if coverage for 

Business Income Including "Rental Value" 

or "Rental Value" applies. 

Case 1:20-cv-22049-KMM Document 1-3 Entered on FLSD Docket 05/15/2020 Page 55 of 90
POLICY NUMBER: FSF15744042 001 COMMERCIAL PROPERTY

CP 04 11 10 12

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

CP 04 11 10 12 Copyright, Insurance Services Office, Inc., 1997 Page 1 of 2 

PROTECTIVE SAFEGUARDS

This endorsement modifies insurance provided under the following:

COMMERCIAL PROPERTY COVERAGE PART

STANDARD PROPERTY POLICY

SCHEDULE

Premises Number Building Number

Protective Safeguards

Symbols Applicable

1 Building #1 P9

Describe Any "P-9": Functioning and operating smoke detectors in all units and/or occupancies

Information required to complete this Schedule, if not shown above, will be shown in the Declarations.

A. The following is added to the Commercial Property

Conditions:

Protective Safeguards

1. As a condition of this insurance, you are

required to maintain the protective devices or

services listed in the Schedule above.

2. The protective safeguards to which this

endorsement applies are identified by the

following symbols:

"P-1" Automatic Sprinkler System, including

related supervisory services.

Automatic Sprinkler System means:

a. Any automatic fire protective or

extinguishing system, including connected:

(1) Sprinklers and discharge nozzles;

(2) Ducts, pipes, valves and fittings;

(3) Tanks, their component parts and

supports; and

(4) Pumps and private fire protection mains.

b. When supplied from an automatic fire

protective system:

(1) Non-automatic fire protective systems;

and

(2) Hydrants, standpipes and outlets.

"P-2" Automatic Fire Alarm, protecting the

entire building, that is:

a. Connected to a central station; or

b. Reporting to a public or private fire alarm

station.

"P-3" Security Service, with a recording

system or watch clock, making hourly rounds

covering the entire building, when the premises

are not in actual operation.

"P-4" Service Contract with a privately owned

fire department providing fire protection service

to the described premises.

"P-5" Automatic Commercial Cooking

Exhaust And Extinguishing System installed

on cooking appliances and having the following

components:

a. Hood:

b. Grease removal device;

c. Duct system; and

d. Wet chemical fire extinguishing equipment.

"P-9", the protective system described in the

Schedule.

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CP 04 11 10 12 Copyright, Insurance Services Office, Inc., 2011 Page 2 of 2 

B. The following is added to the Exclusions section

of:

Causes Of Loss – Basic Form

Causes Of Loss – Broad Form

Causes Of Loss – Special Form

Mortgageholders Errors And Omissions Coverage

Form

Standard Property Policy

We will not pay for loss or damage caused by or

resulting from fire if, prior to the fire, you:

1. Knew of any suspension or impairment in any

protective safeguard listed in the Schedule

above and failed to notify us of that fact; or

2. Failed to maintain any protective safeguard

listed in the Schedule above, and over which

you had control, in complete working order.

If part of an Automatic Sprinkler System or

Automatic Commercial Cooking Exhaust And

Extinguishing System is shut off due to breakage,

leakage, freezing conditions or opening of

sprinkler heads, notification to us will not be

necessary if you can restore full protection within

48 hours.

Case 1:20-cv-22049-KMM Document 1-3 Entered on FLSD Docket 05/15/2020 Page 57 of 90
COMMERCIAL PROPERTY

CP 10 30 10 12

CP 10 30 10 12 © Insurance Services Office, Inc., 2011 Page 1 of 10

CAUSES OF LOSS – SPECIAL FORM 

Words and phrases that appear in quotation marks have special meaning. Refer to Section G. Definitions. 

A. Covered Causes Of Loss 

When Special is shown in the Declarations, 

Covered Causes of Loss means direct physical 

loss unless the loss is excluded or limited in this 

policy. 

B. Exclusions 

 1. We will not pay for loss or damage caused 

directly or indirectly by any of the following. 

Such loss or damage is excluded regardless of 

any other cause or event that contributes 

concurrently or in any sequence to the loss. 

 a. Ordinance Or Law 

The enforcement of or compliance with any 

ordinance or law: 

 (1) Regulating the construction, use or 

repair of any property; or 

 (2) Requiring the tearing down of any 

property, including the cost of removing 

its debris. 

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 a physical loss to that 

property. 

 b. Earth Movement 

(1) Earthquake, including tremors and 

aftershocks and any earth sinking, rising 

or shifting related to such event; 

(2) Landslide, including any earth sinking, 

rising or shifting related to such event; 

(3) Mine subsidence, meaning subsidence 

of a man-made mine, whether or not 

mining activity has ceased; 

(4) Earth sinking (other than sinkhole 

collapse), rising or shifting 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, 

improperly compacted soil and the 

action of water under the ground 

surface. 

But if Earth Movement, as described in 

b.(1) through (4) above, results in fire or 

explosion, we will pay for the loss or 

damage caused by that fire or explosion. 

(5) 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 or damage caused by that 

fire, building glass breakage or Volcanic 

Action. 

Volcanic Action means direct loss or 

damage resulting from the eruption of a 

volcano when the loss or damage is 

caused by: 

 (a) Airborne volcanic blast or airborne 

shock waves; 

 (b) Ash, dust or particulate matter; or 

 (c) Lava flow. 

With respect to coverage for Volcanic 

Action as set forth in (5)(a), (5)(b) and 

(5)(c), all volcanic eruptions that occur 

within any 168-hour period will constitute 

a single occurrence. 

Volcanic Action does not include the 

cost to remove ash, dust or particulate 

matter that does not cause direct 

physical loss or damage to the 

described property. 

This exclusion applies regardless of 

whether any of the above, in Paragraphs 

(1) through (5), is caused by an act of 

nature or is otherwise caused. 

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 c. Governmental Action 

Seizure or destruction of property by order 

of governmental authority. 

But we will pay for loss or damage caused 

by or resulting from acts of destruction 

ordered by governmental authority and 

taken at the time of a fire to prevent its 

spread, if the fire would be covered under 

this Coverage Part. 

 d. Nuclear Hazard 

Nuclear reaction or radiation, or radioactive 

contamination, however caused. 

But if nuclear reaction or radiation, or 

radioactive contamination, results in fire, we 

will pay for the loss or damage caused by 

that fire. 

 e. Utility Services 

The failure of power, communication, water 

or other utility service supplied to the 

described premises, however caused, if the 

failure: 

(1) Originates away from the described 

premises; or 

(2) Originates at the described premises, 

but only if such failure involves 

equipment used to supply the utility 

service to the described premises from 

a source away from the described 

premises. 

Failure of any utility service includes lack of 

sufficient capacity and reduction in supply. 

Loss or damage caused by a surge of 

power is also excluded, if the surge would 

not have occurred but for an event causing 

a failure of power. 

But if the failure or surge of power, or the 

failure of communication, water or other 

utility service, results in a Covered Cause of 

Loss, we will pay for the loss or damage 

caused by that Covered Cause of Loss. 

Communication services include but are not 

limited to service relating to Internet access 

or access to any electronic, cellular or 

satellite network. 

 f. 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. 

 g. Water 

(1) Flood, surface water, waves (including 

tidal wave and tsunami), tides, tidal 

water, overflow of any body of water, or 

spray from any of these, all whether or 

not driven by wind (including storm 

surge); 

(2) Mudslide or mudflow; 

(3) Water that backs up or overflows or is 

otherwise discharged from a sewer, 

drain, sump, sump pump or related 

equipment; 

(4) Water 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) Waterborne material carried or 

otherwise moved by any of the water 

referred to in Paragraph (1), (3) or (4),

or material carried or otherwise moved 

by mudslide or mudflow. 

This exclusion applies regardless of 

whether any of the above, in Paragraphs 

(1) through (5), is caused by an act of 

nature or is otherwise caused. An example 

of a situation to which this exclusion applies 

is the situation where a dam, levee, seawall 

or other boundary or containment system 

fails in whole or in part, for any reason, to 

contain the water. 

But if any of the above, in Paragraphs (1)

through (5), results in fire, explosion or 

sprinkler leakage, we will pay for the loss or 

damage caused by that fire, explosion or 

sprinkler leakage (if sprinkler leakage is a 

Covered Cause of Loss). 

 h. "Fungus", Wet Rot, Dry Rot And 

Bacteria 

Presence, growth, proliferation, spread or 

any activity of "fungus", wet or dry rot or 

bacteria. 

But if "fungus", wet or dry rot or bacteria 

result in a "specified cause of loss", we will 

pay for the loss or damage caused by that 

"specified cause of loss". 

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CP 10 30 10 12 © Insurance Services Office, Inc., 2011 Page 3 of 10

This exclusion does not apply: 

 (1) When "fungus", wet or dry rot or bacteria 

result from fire or lightning; or 

 (2) To the extent that coverage is provided 

in the Additional Coverage, Limited 

Coverage For "Fungus", Wet Rot, Dry 

Rot And Bacteria, with respect to loss or 

damage by a cause of loss other than 

fire or lightning. 

Exclusions B.1.a. through B.1.h. apply whether 

or not the loss event results in widespread 

damage or affects a substantial area. 

 2. We will not pay for loss or damage caused by 

or resulting from any of the following: 

 a. Artificially generated electrical, magnetic or 

electromagnetic energy that damages, 

disturbs, disrupts or otherwise interferes 

with any: 

 (1) Electrical or electronic wire, device, 

appliance, system or network; or 

 (2) Device, appliance, system or network 

utilizing cellular or satellite technology. 

For the purpose of this exclusion, electrical, 

magnetic or electromagnetic energy 

includes but is not limited to: 

 (a) Electrical current, including arcing; 

 (b) Electrical charge produced or 

conducted by a magnetic or 

electromagnetic field; 

 (c) Pulse of electromagnetic energy; or 

 (d) Electromagnetic waves or 

microwaves. 

But if fire results, we will pay for the loss or 

damage caused by that fire. 

 b. Delay, loss of use or loss of market. 

 c. Smoke, vapor or gas from agricultural 

smudging or industrial operations. 

 d.(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. But if mechanical breakdown 

results in elevator collision, we will pay 

for the loss or damage caused by that 

elevator collision. 

 (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 2.d.(1) through (7) results in a 

"specified cause of loss" or building glass 

breakage, we will pay for the loss or 

damage caused by that "specified cause of 

loss" or building glass breakage. 

 e. Explosion of steam boilers, steam pipes, 

steam engines or steam turbines owned or 

leased by you, or operated under your 

control. But if explosion of steam boilers, 

steam pipes, steam engines or steam 

turbines results in fire or combustion 

explosion, we will pay for the loss or 

damage caused by that fire or combustion 

explosion. We will also pay for loss or 

damage caused by or resulting from the 

explosion of gases or fuel within the furnace 

of any fired vessel or within the flues or 

passages through which the gases of 

combustion pass. 

f. Continuous or repeated seepage or 

leakage of water, or the presence or 

condensation of humidity, moisture or 

vapor, that occurs over a period of 14 days 

or more. 

 g. 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 

or resulting from freezing, unless: 

 (1) You do your best to maintain heat in the 

building or structure; or 

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 (2) You drain the equipment and shut off 

the supply if the heat is not maintained. 

 h. Dishonest or criminal act (including theft) by 

you, any of your partners, members, 

officers, managers, employees (including 

temporary employees and leased workers), 

directors, trustees or authorized 

representatives, whether acting alone or in 

collusion with each other or with any other 

party; or 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: 

 (1) Applies whether or not an act occurs 

during your normal hours of operation; 

(2) Does not apply to acts of destruction by 

your employees (including temporary 

employees and leased workers) or 

authorized representatives; but theft by 

your employees (including temporary 

employees and leased workers) or 

authorized representatives is not 

covered. 

 i. 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. 

 j. Rain, snow, ice or sleet to personal 

property in the open. 

 k. Collapse, including any of the following 

conditions of property or any part of the 

property: 

(1) An abrupt falling down or caving in; 

(2) Loss of structural integrity, including 

separation of parts of the property or 

property in danger of falling down or 

caving in; or 

(3) Any cracking, bulging, sagging, bending, 

leaning, settling, shrinkage or expansion 

as such condition relates to (1) or (2) 

above.

But if collapse results in a Covered Cause 

of Loss at the described premises, we will 

pay for the loss or damage caused by that 

Covered Cause of Loss. 

This exclusion, k., does not apply: 

 (a) To the extent that coverage is 

provided under the Additional 

Coverage, Collapse; or 

(b) To collapse caused by one or more 

of the following: 

 (i) The "specified causes of loss"; 

(ii) Breakage of building glass; 

(iii) Weight of rain that collects on a 

roof; or 

 (iv) Weight of people or personal 

property. 

 l. Discharge, dispersal, seepage, migration, 

release or escape of "pollutants" unless the 

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 a 

"specified cause of loss", we will pay for the 

loss or damage caused by that "specified 

cause of loss". 

This exclusion, I., does not apply to 

damage to glass caused by chemicals 

applied to the glass. 

m. Neglect of an insured to use all reasonable 

means to save and preserve property from 

further damage at and after the time of loss. 

3. We will not pay for loss or damage caused by 

or resulting from any of the following, 3.a.

through 3.c. But if an excluded cause of loss 

that is listed in 3.a. through 3.c. results in a 

Covered Cause of Loss, we will pay for the 

loss or damage caused by that Covered Cause 

of Loss. 

 a. Weather conditions. But this exclusion only 

applies if weather conditions contribute in 

any way with a cause or event excluded in 

Paragraph 1. above to produce the loss or 

damage. 

 b. Acts or decisions, including the failure to act 

or decide, of any person, group, 

organization or governmental body. 

 c. 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 on or off the 

described premises. 

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 4. Special Exclusions 

The following provisions apply only to the 

specified Coverage Forms: 

 a. Business Income (And Extra Expense) 

Coverage Form, Business Income 

(Without Extra Expense) Coverage Form, 

Or Extra Expense Coverage Form

We will not pay for: 

 (1) Any loss caused by or resulting from: 

 (a) Damage or destruction of "finished 

stock"; or 

 (b) The time required to reproduce 

"finished stock". 

This exclusion does not apply to Extra 

Expense. 

(2) Any loss caused by or resulting from 

direct physical loss or damage to radio 

or television antennas (including satellite 

dishes) and their lead-in wiring, masts or 

towers. 

 (3) Any increase of loss caused by or 

resulting from: 

 (a) Delay in rebuilding, repairing or 

replacing the property or resuming 

"operations", due to interference at 

the location of the rebuilding, repair 

or replacement by strikers or other 

persons; or 

 (b) Suspension, lapse or cancellation of 

any license, lease or contract. But if 

the suspension, lapse or cancellation 

is directly caused by the 

"suspension" of "operations", we will 

cover such loss that affects your 

Business Income during the "period 

of restoration" and any extension of 

the "period of restoration" in 

accordance with the terms of the 

Extended Business Income 

Additional Coverage and the 

Extended Period Of Indemnity 

Optional Coverage or any variation 

of these. 

 (4) Any Extra Expense caused by or 

resulting from suspension, lapse or 

cancellation of any license, lease or 

contract beyond the "period of 

restoration". 

 (5) Any other consequential loss. 

 b. Leasehold Interest Coverage Form 

 (1) Paragraph B.1.a., Ordinance Or Law, 

does not apply to insurance under this 

Coverage Form. 

 (2) We will not pay for any loss caused by: 

 (a) Your cancelling the lease; 

 (b) The suspension, lapse or 

cancellation of any license; or 

 (c) Any other consequential loss. 

 c. Legal Liability Coverage Form 

 (1) The following exclusions do not apply to 

insurance under this Coverage Form: 

 (a) Paragraph B.1.a. Ordinance Or Law; 

 (b) Paragraph B.1.c. Governmental 

Action; 

 (c) Paragraph B.1.d. Nuclear Hazard; 

 (d) Paragraph B.1.e. Utility Services; 

and 

 (e) Paragraph B.1.f. War And Military 

Action. 

(2) The following additional exclusions 

apply to insurance under this Coverage 

Form: 

 (a) Contractual Liability 

We will not defend any claim or 

"suit", or pay damages that you are 

legally liable to pay, solely by reason 

of your assumption of liability in a 

contract or agreement. But this 

exclusion does not apply to a written 

lease agreement in which you have 

assumed liability for building damage 

resulting from an actual or attempted 

burglary or robbery, provided that: 

 (i) Your assumption of liability was 

executed prior to the accident; 

and 

 (ii) The building is Covered Property 

under this Coverage Form. 

 (b) Nuclear Hazard 

We will not defend any claim or 

"suit", or pay any damages, loss, 

expense or obligation, resulting from 

nuclear reaction or radiation, or 

radioactive contamination, however 

caused. 

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 5. Additional Exclusion 

The following provisions apply only to the 

specified property: 

Loss Or Damage To Products 

We will not pay for loss or damage to any 

merchandise, goods or other product 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 or damage 

caused by that Covered Cause of Loss. 

C. Limitations 

The following limitations apply to all policy forms 

and endorsements, unless otherwise stated: 

1. We will not pay for loss of or damage to 

property, as described and limited in this 

section. In addition, we will not pay for any loss 

that is a consequence of loss or damage as 

described and limited in this section. 

 a. Steam boilers, steam pipes, steam engines 

or steam turbines caused by or resulting 

from any condition or event inside such 

equipment. But we will pay for loss of or 

damage to such equipment caused by or 

resulting from 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 caused by or resulting from any 

condition or event inside such boilers or 

equipment, other than an explosion. 

c. The interior of any building or structure, or 

to personal property in the building or 

structure, caused by or resulting from 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 or walls through which the rain, 

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

 (2) The loss or damage is caused by or 

results from thawing of snow, sleet or 

ice on the building or structure. 

 d. Building materials and supplies not 

attached as part of the building or structure, 

caused by or resulting from theft. 

However, this limitation does not apply to: 

 (1) Building materials and supplies held for 

sale by you, unless they are insured 

under the Builders Risk Coverage Form; 

or 

(2) Business Income Coverage or Extra 

Expense Coverage. 

 e. Property that is missing, where the only 

evidence of the loss or damage is a 

shortage disclosed on taking inventory, or 

other instances where there is no physical 

evidence to show what happened to the 

property. 

 f. Property that has been transferred to a 

person or to a place outside the described 

premises on the basis of unauthorized 

instructions. 

 g. Lawns, trees, shrubs or plants which are 

part of a vegetated roof, caused by or 

resulting from: 

 (1) Dampness or dryness of atmosphere or 

of soil supporting the vegetation;

 (2) Changes in or extremes of temperature;

 (3) Disease;

 (4) Frost or hail; or 

 (5) Rain, snow, ice or sleet.

2. We will not pay for loss of or damage to the 

following types of property unless caused by 

the "specified causes of loss" or building glass 

breakage: 

 a. Animals, and then only if they are killed or 

their destruction is made necessary. 

 b. Fragile articles such as statuary, marbles, 

chinaware and porcelains, if broken. This 

restriction does not apply to: 

 (1) Glass; or 

 (2) Containers of property held for sale. 

 c. Builders' machinery, tools and equipment 

owned by you or entrusted to you, provided 

such property is Covered Property. 

However, this limitation does not apply: 

 (1) If the property is located on or within 

100 feet of the described premises, 

unless the premises is insured under the 

Builders Risk Coverage Form; or 

 (2) To Business Income Coverage or to 

Extra Expense Coverage. 

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CP 10 30 10 12 © Insurance Services Office, Inc., 2011 Page 7 of 10

 3. The special limit shown for each category, a.

through d., is the total limit for loss of or 

damage to all property in that category. The 

special limit applies to any one occurrence of 

theft, regardless of the types or number of 

articles that are lost or damaged in that 

occurrence. The special limits are (unless a 

higher limit is shown in the Declarations): 

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

trimmed with fur. 

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

movements, jewels, pearls, precious and 

semiprecious 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. 

d. $250 for stamps, tickets, including lottery 

tickets held for sale, and letters of credit. 

These special limits are part of, not in addition 

to, the Limit of Insurance applicable to the 

Covered Property. 

This limitation, C.3., does not apply to 

Business Income Coverage or to Extra 

Expense Coverage. 

 4. We will not pay the cost to repair any defect to 

a system or appliance from which water, other 

liquid, powder or molten material escapes. But 

we will pay the cost to repair or replace 

damaged parts of fire-extinguishing equipment 

if the damage: 

 a. Results in discharge of any substance from 

an automatic fire protection system; or 

 b. Is directly caused by freezing. 

However, this limitation does not apply to 

Business Income Coverage or to Extra 

Expense Coverage. 

D. Additional Coverage – Collapse 

The coverage provided under this Additional 

Coverage, Collapse, applies only to an abrupt 

collapse as described and limited in D.1. through 

D.7. 

 1. For the purpose of this Additional Coverage, 

Collapse, abrupt collapse means an abrupt 

falling down or caving in of a building or any 

part of a building with the result that the 

building or part of the building cannot be 

occupied for its intended purpose. 

2. We will pay for direct physical loss or damage 

to Covered Property, caused by abrupt 

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 such collapse is caused 

by one or more of the following: 

a. Building decay that is hidden from view, 

unless the presence of such decay is 

known to an insured prior to collapse; 

b. Insect or vermin damage that is hidden 

from view, unless the presence of such 

damage is known to an insured prior to 

collapse; 

 c. Use of defective material or methods in 

construction, remodeling or renovation if the 

abrupt collapse occurs during the course of 

the construction, remodeling or renovation. 

d. Use of defective material or methods in 

construction, remodeling or renovation if the 

abrupt collapse occurs after the 

construction, remodeling or renovation is 

complete, but only if the collapse is caused 

in part by: 

 (1) A cause of loss listed in 2.a. or 2.b.; 

 (2) One or more of the "specified causes of 

loss"; 

 (3) Breakage of building glass; 

 (4) Weight of people or personal property; 

or 

 (5) Weight of rain that collects on a roof. 

 3. This Additional Coverage – Collapse does 

not apply to: 

 a. A building or any part of a building that is in 

danger of falling down or caving in; 

b. A part of a building that is standing, even if 

it has separated from another part of the 

building; or 

c. A building that is standing or any part of a 

building that is standing, even if it shows 

evidence of cracking, bulging, sagging, 

bending, leaning, settling, shrinkage or 

expansion. 

 4. With respect to the following property: 

 a. Outdoor radio or television antennas 

(including satellite dishes) and their lead-in 

wiring, masts or towers; 

Case 1:20-cv-22049-KMM Document 1-3 Entered on FLSD Docket 05/15/2020 Page 64 of 90
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 b. Awnings, gutters and downspouts; 

 c. Yard fixtures; 

 d. Outdoor swimming pools; 

 e. Fences; 

 f. Piers, wharves and docks; 

 g. Beach or diving platforms or 

appurtenances; 

 h. Retaining walls; and 

 i. Walks, roadways and other paved surfaces; 

if an abrupt collapse is caused by a cause of 

loss listed in 2.a. through 2.d., we will pay for 

loss or damage to that property only if: 

 (1) Such loss or damage is a direct result of 

the abrupt collapse of a building insured 

under this Coverage Form; and 

 (2) The property is Covered Property under 

this Coverage Form. 

 5. If personal property abruptly falls down or 

caves in and such collapse is not the result of 

abrupt collapse of a building, we will pay for 

loss or damage to Covered Property caused by 

such collapse of personal property only if: 

 a. The collapse of personal property was 

caused by a cause of loss listed in 2.a.

through 2.d.;

b. The personal property which collapses is 

inside a building; and 

c. The property which collapses is not of a 

kind listed in 4., regardless of whether that 

kind of property is considered to be 

personal property or real property. 

The coverage stated in this Paragraph 5. does 

not apply to personal property if marring and/or 

scratching is the only damage to that personal 

property caused by the collapse. 

 6. This Additional Coverage, Collapse, does not 

apply to personal property that has not abruptly 

fallen down or caved in, even if the personal 

property shows evidence of cracking, bulging, 

sagging, bending, leaning, settling, shrinkage 

or expansion. 

 7. This Additional Coverage, Collapse, will not 

increase the Limits of Insurance provided in 

this Coverage Part. 

8. The term Covered Cause of Loss includes the 

Additional Coverage, Collapse, as described 

and limited in D.1. through D.7.

E. Additional Coverage – Limited Coverage For 

"Fungus", Wet Rot, Dry Rot And Bacteria 

 1. The coverage described in E.2. and E.6. only 

applies when the "fungus", wet or dry rot or 

bacteria are the result of one or more of the 

following causes that occur during the policy 

period and only if all reasonable means were 

used to save and preserve the property from 

further damage at the time of and after that 

occurrence: 

 a. A "specified cause of loss" other than fire or 

lightning; or 

 b. Flood, if the Flood Coverage Endorsement 

applies to the affected premises. 

This Additional Coverage does not apply to 

lawns, trees, shrubs or plants which are part of 

a vegetated roof. 

 2. We will pay for loss or damage by "fungus", 

wet or dry rot or bacteria. As used in this 

Limited Coverage, the term loss or damage 

means: 

 a. Direct physical loss or damage to Covered 

Property caused by "fungus", wet or dry rot 

or bacteria, including the cost of removal of 

the "fungus", wet or dry rot or bacteria; 

 b. The cost to tear out and replace any part of 

the building or other property as needed to 

gain access to the "fungus", wet or dry rot 

or bacteria; and 

c. The cost of testing performed after removal, 

repair, replacement or restoration of the 

damaged property is completed, provided 

there is a reason to believe that "fungus", 

wet or dry rot or bacteria are present. 

 3. The coverage described under E.2. of this 

Limited Coverage is limited to $15,000. 

Regardless of the number of claims, this limit is 

the most we will pay for the total of all loss or 

damage arising out of all occurrences of 

"specified causes of loss" (other than fire or 

lightning) and Flood which take place in a 12-

month period (starting with the beginning of the 

present annual policy period). With respect to a 

particular occurrence of loss which results in 

"fungus", wet or dry rot or bacteria, we will not 

pay more than a total of $15,000 even if the 

"fungus", wet or dry rot or bacteria continue to 

be present or active, or recur, in a later policy 

period. 

Case 1:20-cv-22049-KMM Document 1-3 Entered on FLSD Docket 05/15/2020 Page 65 of 90
CP 10 30 10 12 © Insurance Services Office, Inc., 2011 Page 9 of 10

 4. The coverage provided under this Limited 

Coverage does not increase the applicable 

Limit of Insurance on any Covered Property. If 

a particular occurrence results in loss or 

damage by "fungus", wet or dry rot or bacteria, 

and other loss or damage, we will not pay 

more, for the total of all loss or damage, than 

the applicable Limit of Insurance on the 

affected Covered Property. 

If there is covered loss or damage to Covered 

Property, not caused by "fungus", wet or dry rot 

or bacteria, loss payment will not be limited by 

the terms of this Limited Coverage, except to 

the extent that "fungus", wet or dry rot or 

bacteria cause an increase in the loss. Any 

such increase in the loss will be subject to the 

terms of this Limited Coverage. 

 5. The terms of this Limited Coverage do not 

increase or reduce the coverage provided 

under Paragraph F.2. (Water Damage, Other 

Liquids, Powder Or Molten Material Damage) 

of this Causes Of Loss form or under the 

Additional Coverage, Collapse. 

 6. The following, 6.a. or 6.b., applies only if 

Business Income and/or Extra Expense 

Coverage applies to the described premises 

and only if the "suspension" of "operations" 

satisfies all terms and conditions of the 

applicable Business Income and/or Extra 

Expense Coverage Form: 

 a. If the loss which resulted in "fungus", wet or 

dry rot or bacteria does not in itself 

necessitate a "suspension" of "operations", 

but such "suspension" is necessary due to 

loss or damage to property caused by 

"fungus", wet or dry rot or bacteria, then our 

payment under Business Income and/or 

Extra Expense is limited to the amount of 

loss and/or expense sustained in a period 

of not more than 30 days. The days need 

not be consecutive. 

 b. If a covered "suspension" of "operations" 

was caused by loss or damage other than 

"fungus", wet or dry rot or bacteria but 

remediation of "fungus", wet or dry rot or 

bacteria prolongs the "period of restoration", 

we will pay for loss and/or expense 

sustained during the delay (regardless of 

when such a delay occurs during the 

"period of restoration"), but such coverage 

is limited to 30 days. The days need not be 

consecutive. 

F. Additional Coverage Extensions 

 1. Property In Transit

This Extension applies only to your personal 

property to which this form applies. 

 a. You may extend the insurance provided by 

this Coverage Part to apply to your 

personal property (other than property in 

the care, custody or control of your 

salespersons) in transit more than 100 feet 

from the described premises. Property must 

be in or on a motor vehicle you own, lease 

or operate while between points in the 

coverage territory. 

b. Loss or damage must be caused by or 

result from one of the following causes of 

loss: 

 (1) Fire, lightning, explosion, windstorm or 

hail, riot or civil commotion, or 

vandalism. 

 (2) Vehicle collision, upset or overturn. 

Collision means accidental contact of 

your vehicle with another vehicle or 

object. It does not mean your vehicle's 

contact with the roadbed. 

 (3) Theft of an entire bale, case or package 

by forced entry into a securely locked 

body or compartment of the vehicle. 

There must be visible marks of the 

forced entry. 

 c. The most we will pay for loss or damage 

under this Extension is $5,000. 

This Coverage Extension is additional 

insurance. The Additional Condition, 

Coinsurance, does not apply to this Extension. 

 2. Water Damage, Other Liquids, Powder Or 

Molten Material Damage 

If loss or damage caused by or resulting from 

covered water or other liquid, powder or molten 

material damage loss occurs, we will also pay 

the cost to tear out and replace any part of the 

building or structure to repair damage to the 

system or appliance from which the water or 

other substance escapes. This Coverage 

Extension does not increase the Limit of 

Insurance. 

 3. Glass 

 a. We will pay for expenses incurred to put up 

temporary plates or board up openings if 

repair or replacement of damaged glass is 

delayed. 

Case 1:20-cv-22049-KMM Document 1-3 Entered on FLSD Docket 05/15/2020 Page 66 of 90
Page 10 of 10 © Insurance Services Office, Inc., 2011 CP 10 30 10 12

b. We will pay for expenses incurred to 

remove or replace obstructions when 

repairing or replacing glass that is part of a 

building. This does not include removing or 

replacing window displays. 

This Coverage Extension F.3. does not 

increase the Limit of Insurance. 

G. Definitions 

 1. "Fungus" means any type or form of fungus, 

including mold or mildew, and any mycotoxins, 

spores, scents or by-products produced or 

released by fungi. 

 2. "Specified causes of loss" means the following: 

fire; lightning; explosion; windstorm or hail; 

smoke; aircraft or vehicles; riot or civil 

commotion; vandalism; leakage from fireextinguishing equipment; sinkhole collapse; 

volcanic action; falling objects; weight of snow, 

ice or sleet; water damage. 

 a. Sinkhole collapse means the sudden 

sinking or collapse of land into underground 

empty spaces created by the action of 

water on limestone or dolomite. This cause 

of loss does not include: 

 (1) The cost of filling sinkholes; or 

 (2) Sinking or collapse of land into manmade underground cavities. 

 b. Falling objects does not include loss or 

damage to: 

 (1) Personal property in the open; or

 (2) The interior of a building or structure, or 

property inside a building or structure, 

unless the roof or an outside wall of the 

building or structure is first damaged by 

a falling object. 

 c. Water damage means: 

 (1) Accidental discharge or leakage of 

water or steam as the direct result of the 

breaking apart or cracking of a 

plumbing, heating, air conditioning or 

other system or appliance (other than a 

sump system including its related 

equipment and parts), that is located on 

the described premises and contains 

water or steam; and

 (2) Accidental discharge or leakage of 

water or waterborne material as the 

direct result of the breaking apart or 

cracking of a water or sewer pipe that is 

located off the described premises and 

is part of a municipal potable water 

supply system or municipal sanitary 

sewer system, if the breakage or 

cracking is caused by wear and tear. 

But water damage does not include loss or 

damage otherwise excluded under the 

terms of the Water Exclusion. Therefore, for 

example, there is no coverage under this 

policy in the situation in which discharge or 

leakage of water results from the breaking 

apart or cracking of a pipe which was 

caused by or related to weather-induced 

flooding, even if wear and tear 

contributed to the breakage or cracking. As 

another example, and also in accordance 

with the terms of the Water Exclusion, there 

is no coverage for loss or damage caused 

by or related to weather-induced flooding 

which follows or is exacerbated by pipe 

breakage or cracking attributable to wear 

and tear. 

To the extent that accidental discharge or 

leakage of water falls within the criteria set 

forth in c.(1) or c.(2) of this definition of 

"specified causes of loss," such water is not 

subject to the provisions of the Water 

Exclusion which preclude coverage for 

surface water or water under the surface of 

the ground. 

Case 1:20-cv-22049-KMM Document 1-3 Entered on FLSD Docket 05/15/2020 Page 67 of 90
CP 12 11 10 00 Copyright, Insurance Services Office, Inc., 1999 Page 1 of 1 

POLICY NUMBER: FSF15744042 001 COMMERCIAL PROPERTY

CP 12 11 10 00

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

BURGLARY AND ROBBERY PROTECTIVE

SAFEGUARDS

This endorsement modifies insurance provided under the following:

COMMERCIAL PROPERTY COVERAGE PART

SCHEDULE*

Premises

No.

Building

No.

Protective Safeguards

Symbols Applicable

1 

 

1 BR-1

Describe any "BR-4":

* Information required to complete this Schedule, if not shown on this endorsement, will be shown in the

Declarations.

A. The following is added to the Commercial

Property Conditions:

BURGLARY AND ROBBERY PROTECTIVE

SAFEGUARDS

1. As a condition of this insurance, you are

required to maintain the protective devices

and/or services listed in the Schedule above.

2. The protective safeguard(s) to which this

endorsement applies are identified by the

following symbols:

a. "BR-1" Automatic Burglary Alarm, protecting

the entire building, that signals to:

(1) An outside central station; or

(2) A police station.

b. "BR-2" Automatic Burglary Alarm, protecting

the entire building, that has a loud sounding

gong or siren on the outside of the building.

c. "BR-3" Security Service, with a recording

system or watch clock, making hourly rounds

covering the entire building, when the premises

are not in actual operation.

d. "BR-4" The protective safeguard described in

the Schedule.

B. The following is added to the Exclusions section of

the Causes Of Loss – Special Form:

BURGLARY AND ROBBERY PROTECTIVE

SAFEGUARDS

We will not pay for loss or damage caused by or

resulting from theft if, prior to the theft, you:

1. Knew of any suspension or impairment in any

protective safeguard listed in the Schedule above

and failed to notify us of that fact; or

2. Failed to maintain any protective safeguard listed

in the Schedule above, and over which you had

control, in complete working order.

Case 1:20-cv-22049-KMM Document 1-3 Entered on FLSD Docket 05/15/2020 Page 68 of 90
 IL P 003 07 05

FLOOD COVERAGE

ADVISORY NOTICE TO POLICYHOLDERS

THIS POLICY DOES NOT COVER DAMAGE FROM FLOOD.

FOR INFORMATION ABOUT FLOOD INSURANCE, PLEASE CONTACT THE NATIONAL FLOOD INSURANCE

PROGRAM OR YOUR INSURANCE AGENT.

IL P 003 07 05 © ISO Properties, Inc., 2005 Page 1 of 1 

Case 1:20-cv-22049-KMM Document 1-3 Entered on FLSD Docket 05/15/2020 Page 69 of 90
FA-49317 (06/17) Page 1 of 1

ASBESTOS MATERIAL EXCLUSION

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

This endorsement modifies insurance provided under the following:

COMMERCIAL PROPERTY COVERAGE PART

The following supersedes the terms and conditions of this Coverage Part. We will not pay for:

1) Demolition or increased cost of reconstruction, repair, debris removal or loss of use necessitated by the

enforcement of any law or ordinance regulating asbestos material; or

2) Any government direction or request declaring that asbestos material present in or part of or utilized on any

undamaged portion of the insured's property can no longer be used for the purpose for which it was

intended or installed and must be removed or modified.

All other terms and conditions of this policy remain unchanged. This endorsement is a part of your policy and

takes effect on the effective date of your policy unless another effective date is shown.

Authorized Representative

Case 1:20-cv-22049-KMM Document 1-3 Entered on FLSD Docket 05/15/2020 Page 70 of 90
V.1.2013 

CHUBB GROUP OF COMPANIES

U.S. PRIVACY NOTICE

WHAT DOES THE CHUBB GROUP OF COMPANIES DO WITH 

YOUR PERSONAL INFORMATION?

Reasons we can share your

personal information Does Westchester 

share?

Can you limit this sharing?

For our everyday business purposes – such

as to process your transactions, maintain your

account(s), respond to court orders and legal

investigations, or report to credit bureaus 

Yes No

For our marketing purposes – to offer our

products and services to you 

Yes No

For joint marketing with other financial

companies

Yes No

For our affiliates’ everyday business

purposes – information about your

transactions and experiences 

Yes No

For our affiliates’ everyday business

purposes – information about your

creditworthiness 

No We don’t share 

For our affiliates to market to you No We don’t share 

For nonaffiliates to market to you No We don’t share 

4 

Questions? Call 1-800-352-4462 or go to www.acegroup.com/us-en/contact-us/general-inquiry-form.aspx

FACTS

Why?

Insurance companies choose how they share your personal information. Federal and state law gives

consumers the right to limit some but not all sharing. Federal and state law also requires us to tell you

how we collect, share, and protect your personal information. Please read this notice carefully to

understand what we do.

What?

The types of personal information we collect and share depend on the product or service you have with

us. This information can include: 

 Social Security number and payment history 

 insurance claim history and medical information 

 account transactions and credit scores 

When you are no longer our customer, we continue to share information about you as described in this

notice. 

How?

All insurance companies need to share customers’ personal information to run their everyday business.

In the section below, we list the reasons insurance companies can share their customers’ personal

information; the reasons the Westchester chooses to share; and whether you can limit this sharing. 

Case 1:20-cv-22049-KMM Document 1-3 Entered on FLSD Docket 05/15/2020 Page 71 of 90
V.1.2013 

Page 2 

Who we are

Who is providing this

notice?

The Chubb Group of Companies. A list of these companies is located at the end of 

this document. 

What we do

How does 

Westchester protect 

my personal

information?

To protect your personal information from unauthorized access and use, we use security

measures that comply with federal law. These measures include computer safeguards and

secured files and buildings. 

We restrict access to personal information to our employees, affiliates’ employees, or others

who need to know that information to service the account or to conduct our normal business

operations. 

How does 

Westchester collect 

my personal

information?

We collect your personal information, for example, when you 

 apply for insurance or pay insurance premiums 

 file an insurance claim or provide account information 

 give us your contact information 

We also collect your personal information from others, such as credit bureaus, affiliates, or

other companies. 

Why can’t I limit all

sharing?

Federal law gives you the right to limit only 

 sharing for affiliates’ everyday business purposes – information about your

creditworthiness 

 affiliates from using your information to market to you 

 sharing for nonaffiliates to market to you 

State laws and individual companies may give you additional rights to limit sharing. See

below for more on your rights under state law. 

Definitions

Affiliates

Companies related by common ownership or control. They can be financial and

nonfinancial companies. 

 Our affiliates include those with an Westchester name and financial companies, 

such as Westchester Fire Insurance Company and ESIS, Inc. 

Nonaffiliates

Companies not related by common ownership or control. They can be financial and

nonfinancial companies. 

 Westchester does not share with nonaffiliates so they can market to you. 

Joint Marketing

A formal agreement between nonaffiliated financial companies that together market financial

products or services to you. 

 Our joint marketing partners include categories of companies such as banks. 

Case 1:20-cv-22049-KMM Document 1-3 Entered on FLSD Docket 05/15/2020 Page 72 of 90
V.1.2013 

Page 3 

Other important information

For Insurance Customers in CA, CT, GA, IL, MA, ME, MN, MT, NC, NJ, OH, OR, and VA only: Under state law, you

have the right see the personal information about you that we have on file. To see your information, write Chubb US

Customer Services, P.O. Box 1000, 436 Walnut Street, WA04B, Philadelphia, PA 19106.Chubb may charge a reasonable 

fee to cover the costs of providing this information. If you think any of the information is wrong, you may write us. We will 

let you know what actions we take. If you do not agree with our actions, you may send us a statement. If you want a full 

description of privacy rights that we will protect in accordance with the law in your home state, please contact us and we

will provide it. We may disclose information to certain third parties, such as law enforcement officers, without your 

permission. 

For Nevada residents only: We may contact our existing customers by telephone to offer additional insurance products

that we believe may be of interest to you. Under state law, you have the right to opt out of these calls by adding your

name to our internal do-not-call list. To opt out of these calls, or for more information about your opt out rights, please

contact our customer service department. You can reach us by calling 1-800-352-4462, emailing us at

info@acegroup.com, or writing to P.O. Box 1000, 436 Walnut Street, WA04B, Philadelphia, PA 19106. You are being

provided this notice under Nevada state law. In addition to contacting Westchester, Nevada residents can contact the

Nevada Attorney General for more information about your opt out rights by calling 775-684-1100, emailing

bcpinfo@ag.state.nv.us, or by writing to: Office of the Attorney General, Nevada Department of Justice, Bureau of

Consumer Protection: 100 North Carson Street, Carson City, NV 89701.

For Vermont residents only: Under state law, we will not share information about your creditworthiness within our

corporate family except with your authorization or consent, but we may share information about our transactions or

experiences with you within our corporate family without your consent. 

Chubb Group of Companies legal entities

Chubb Group of Companies use the names: ACE American Insurance Company, ACE Fire Underwriters Insurance Company, ACE

Insurance Company of the Midwest, ACE Property and Casualty Insurance Company, Atlantic Employers Insurance Company,

Bankers Standard Fire and Marine Company, Bankers Standard Insurance Company, Century Indemnity Company, Illinois Union

Insurance Company, Indemnity Insurance Company of North America, Insurance Company of North America, Pacific Employers

Insurance Company, Westchester Fire Insurance Company, Westchester Surplus Lines Insurance Company, ESIS, Inc., Combined

Insurance Company of America, Combined Life Insurance Company of New York, Penn Millers Insurance Company, Agri General

Insurance Company 

Case 1:20-cv-22049-KMM Document 1-3 Entered on FLSD Docket 05/15/2020 Page 73 of 90
WSG-084 (05/11)

Westchester Surplus Lines

Insurance Company

INSURANCE COMPANY

11575 Great Oaks Way

Suite 200

Alpharetta, GA 30022

NOTICE

POLICY NO: FSF15744042 001

NAME OF NSURED: 4-UP CORP

ADDRESS: 18600 NW 87th Ave, Suite 102

Hialeah, FL 33015

We are pleased to enclose your policy for this account.

Please be advised that by binding this risk with the above referenced Surplus Lines Insurance Company,

you agree that as the Surplus Lines Broker responsible for the placement of this insurance policy, it is

your obligation to comply with all States Surplus Lines Laws including completion of any

declarations/affidavits that must be filed as well as payment of any and all Surplus Lines taxes that must

be remitted to the State(s). We will look to you for indemnification if controlling Surplus Lines Laws are

violated by you as the Surplus Lines broker responsible for the placement.

You further confirm that any applicable state requirement concerning a diligent search for coverage by

admitted carriers has been fulfilled in accordance with state law. 

Thank you for this placement and your regulatory compliance.

Date: 03-16-2020

Case 1:20-cv-22049-KMM Document 1-3 Entered on FLSD Docket 05/15/2020 Page 74 of 90
TRIA24 (01/15)

Westchester Surplus Lines Insurance Company

Insurance Company

4-UP CORP

Policyholder

FSF15744042 001

Policy Number

R-T SPECIALTY LLC

Broker/Producer

POLICYHOLDER DISCLOSURE

NOTICE OF TERRORISM INSURANCE COVERAGE

You were notified that under the Terrorism Risk Insurance Act, as amended, you have a right to purchase insurance

coverage for losses resulting from acts of terrorism. As defined in Section 102(1) of the Act: The term "act of terrorism"

means any act or acts that are certified by the Secretary of the Treasury---in consultation with the Secretary of Homeland

Security, and the Attorney General of the United States---to be an act of terrorism; to be a violent act or an act that is

dangerous to human life, property, or infrastructure; to have resulted in damage within the United States, or outside the

United States in the case of certain air carriers or vessels or the premises of a United States mission; and to have been

committed by an individual or individuals as part of an effort to coerce the civilian population of the United States or to

influence the policy or affect the conduct of the United States Government by coercion.

YOU SHOULD KNOW THAT WHERE COVERAGE IS PROVIDED BY YOUR POLICY FOR LOSSES RESULTING FROM

CERTIFIED ACTS OF TERRORISM, SUCH LOSSES MAY BE PARTIALLY REIMBURSED BY THE UNITED STATES

GOVERNMENT UNDER A FORMULA ESTABLISHED BY FEDERAL LAW. HOWEVER, YOUR POLICY MAY CONTAIN

OTHER EXCLUSIONS WHICH MIGHT AFFECT YOUR COVERAGE, SUCH AS AN EXCLUSION FOR NUCLEAR

EVENTS. UNDER THE FORMULA, THE UNITED STATES GOVERNMENT GENERALLY REIMBURSES 85% FOR

YEAR 2015, 84% BEGINNING ON JANUARY 1, 2016; 83% BEGINNING ON JANUARY 1, 2017, 82% BEGINNING ON

JANUARY 1, 2018; 81% BEGINNING ON JANUARY 1, 2019 AND 80% BEGINNING ON JANUARY 1, 2020, OF

COVERED TERRORISM LOSSES EXCEEDING THE STATUTORILY ESTABLISHED DEDUCTIBLE PAID BY THE

INSURANCE COMPANY PROVIDING THE COVERAGE. THE PREMIUM THAT WOULD BE CHARGED FOR THIS

COVERAGE IS PROVIDED BELOW AND DOES NOT INCLUDE ANY CHARGES FOR THE PORTION OF LOSS THAT

MAY BE COVERED BY THE FEDERAL GOVERNMENT UNDER THE ACT.

YOU SHOULD ALSO KNOW THAT THE TERRORISM RISK INSURANCE ACT, AS AMENDED, CONTAINS A $100

BILLION CAP THAT LIMITS U.S. GOVERNMENT REIMBURSEMENT AS WELL AS INSURERS’ LIABILITY FOR

LOSSES RESULTING FROM CERTIFIED ACTS OF TERRORISM WHEN THE AMOUNT OF SUCH LOSSES IN ANY

ONE CALENDAR YEAR EXCEEDS $100 BILLION. IF THE AGGREGATE INSURED LOSSES FOR ALL INSURERS

EXCEED $100 BILLION, YOUR COVERAGE MAY BE REDUCED.

You elected NOT to purchase terrorism coverage under the Act at the price indicated. ACCORDINGLY, WE WILL NOT

PROVIDE THIS COVERAGE AND YOU DO NOT OWE THE ADDITIONAL PREMIUM FOR THAT COVERAGE

INDICATED BELOW.

Terrorism coverage described by the Act under your policy was made available to you for additional

premium in the amount of $334, however you elected to decline such coverage. 

Case 1:20-cv-22049-KMM Document 1-3 Entered on FLSD Docket 05/15/2020 Page 75 of 90
ALL-10750 (01/15) © Chubb. 2016. All rights reserved. Page 1 of 2

TERRORISM EXCLUSION ENDORSEMENT

Named Insured 

 4-UP CORP

Endorsement Number 

Policy Symbol 

FS

Policy Number 

FSF15744042 001

Policy Period

03-10-2020 To

 

03-10-2021

Effective Date of Endorsement

Issued By (Name of Insurance Company) 

Westchester Surplus Lines Insurance Company

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

THIS ENDORSEMENT MODIFIES INSURANCE PROVIDED UNDER THE FOLLOWING: 

BOILER AND MACHINERY COVERAGE PART

BUSINESS AUTO COVERAGE FORM

GARAGE COVERAGE FORM

MOTOR CARRIER COVERAGE FORM

TRUCKERS COVERAGE FORM

BUSINESS AUTO PHYSICAL DAMAGE COVERAGE FORM

COMMERCIAL INLAND MARINE COVERAGE PART

COMMERCIAL PROPERTY COVERAGE FORM

COMMERCIAL PROPERTY COVERAGE PART

STANDARD PROPERTY POLICY

The following exclusion is added to this policy and applies to all coverages, additional coverages, and coverage

extensions, notwithstanding any provision to the contrary in this policy or any other endorsement hereto:

A. This insurance does not cover loss, damage, injury, expense, cost, or legal obligation directly or indirectly caused

by or resulting from any of the following, regardless of any other cause or event, whether or not insured under this

policy, contributing concurrently or in any other sequence thereto:

1. "Act of Terrorism"; or

2. Actions taken by or on behalf of any government or any branch or division thereof (including, without

limitation, the uniformed armed forces, militia, police, state security, and anti-terrorism agencies) in

responding to, preventing, combating, defending or retaliating against any "Act of Terrorism; or

3. dispersal, application, or release of any actual or alleged pathogen, poison, biologic or chemical product,

material, waste or substance as a result of an Act of Terrorism, and it reasonably appears that one purpose of

the Act of Terrorism was to release such product, material, waste or substance.

This exclusion applies whether or not the "Act of Terrorism" was committed in concert with or on behalf of any

organization or government.

The terms and limitations of this exclusion do not serve to create coverage for any loss which would otherwise be

excluded under this Policy, such as, but not limited to, losses excluded by the “Nuclear Exclusion” or the “War

Exclusion” or similar provision.

B. As used in this endorsement:

1. “Act of Terrorism” means any act against persons, organizations or property of any nature that involves the

following or preparation for the following:

a. Use or threat of force or violence; or

b. Commission or threat of a dangerous act; or

c. Commission or threat of an act that interferes with or disrupts an electronic, communication,

information, or mechanical system; and

Case 1:20-cv-22049-KMM Document 1-3 Entered on FLSD Docket 05/15/2020 Page 76 of 90
ALL-10750 (01/15) © Chubb. 2016. All rights reserved. Page 2 of 2

2. Appears to be intended, in whole or in part, to:

a. Intimidate or coerce a government or the civilian population; or

b. Disrupt any segment of a nation's economy; or

c. Influence the policy of a government by intimidation or coercion; or

d. Affect the conduct of a government by mass destruction, assassination, kidnapping or hostage-taking;

or

e. Further political, ideological, religious, social or economic objectives or to express (or express

opposition to) a philosophy or ideology; or

f. Respond to governmental action or policy.

"Act of Terrorism" shall also include any incident determined to be such by an official, department or agency

that has been specifically authorized by federal statute to make such a determination.

C. Exception Covering Certain Fire Losses

If an Act of Terrorism results in a fire and the direct physical loss or damage to property insured hereunder

located in any State of the United States, the District of Columbia, the Commonwealth of Puerto Rico, the

Commonwealth of the Northern Mariana Islands, American Samoa, Guam, each of the United States Virgin

Islands and any territory or possession of the United States, that, either pursuant to the Standard Fire Policy or

otherwise, prohibits exclusions for acts of terrorism that result in fire, this Company will pay for the loss or

damage caused by that fire. Such coverage for fire applies only to direct loss or damage to property insured

hereunder and may be limited, in accordance with the Standard Fire Policy, to the lesser of the actual cash value

of the property at the time of the loss or the amount which it would cost to repair or replace the property, without

allowance for any increased cost of repair or replacement by reason of any ordinance or law, and without any

compensation for business interruption, extra expense to continue business activities, or any other coverage for

loss or damage other than direct physical loss or damage to the property insured hereunder.

All other terms and conditions remain unchanged.

Case 1:20-cv-22049-KMM Document 1-3 Entered on FLSD Docket 05/15/2020 Page 77 of 90
COMMERCIAL PROPERTY

CP 01 25 02 12

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. 

CP 01 25 02 12 © Insurance Services Office, Inc., 2011 Page 1 of 3

FLORIDA CHANGES 

This endorsement modifies insurance provided under the following: 

COMMERCIAL PROPERTY COVERAGE PART 

A. When this endorsement is attached to Standard 

Property Policy CP 00 99, the term Coverage Part 

in this endorsement is replaced by the term Policy. 

B. The following provision applies when a 

Coinsurance percentage is shown in the 

Declarations: 

Florida law states as follows: 

Coinsurance contract: The rate charged in this 

policy is based upon the use of the coinsurance 

clause attached to this policy, with the consent of 

the Insured. 

C. The following is added: 

If windstorm is a Covered Cause of Loss and loss 

or damage to Covered Property is caused by or 

results from windstorm, the following exclusion 

applies in: 

 1. Broward County; 

2. Dade County; 

3. Martin County; 

4. Monroe County; 

5. Palm Beach County; and 

6. All the areas east of the west bank of the 

Intracoastal Waterway in the counties of: 

 a. Indian River; and 

 b. St. Lucie. 

Windstorm Exterior Paint And Waterproofing 

Exclusion 

We will not pay for loss or damage caused by 

windstorm to: 

 1. Paint; or 

 2. Waterproofing material; 

applied to the exterior of buildings unless the 

building to which such loss or damage occurs also 

sustains other loss or damage by windstorm in the 

course of the same storm event. But such 

coverage applies only if windstorm is a Covered 

Cause of Loss. 

When loss or damage to exterior paint or 

waterproofing material is excluded, we will not 

include the value of paint or waterproofing material 

to determine: 

 a. The amount of the Windstorm or Hail 

Deductible; or 

 b. The value of Covered Property when 

applying the Coinsurance Condition. 

D. The Loss Payment Condition dealing with the 

number of days within which we must pay for 

covered loss or damage is replaced by the 

following: 

Provided you have complied with all the terms of 

this Coverage Part, we will pay for covered loss or 

damage upon the earliest of the following: 

 (1) Within 20 days after we receive the 

sworn proof of loss and reach written 

agreement with you; 

 (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; or 

 (3) Within 90 days of receiving notice of an 

initial, reopened or supplemental claim, 

unless we deny the claim during that 

time or factors beyond our control 

reasonably prevent such payment. If a 

portion of the claim is denied, then the 

90-day time period for payment of claim 

relates to the portion of the claim that is 

not denied. 

Paragraph (3) applies only to the 

following: 

 (a) A claim under a policy covering 

residential property;

 (b) A claim for building or contents 

coverage if the insured structure is 

10,000 square feet or less and the 

policy covers only locations in 

Florida; or

Case 1:20-cv-22049-KMM Document 1-3 Entered on FLSD Docket 05/15/2020 Page 78 of 90
Page 2 of 3 © Insurance Services Office, Inc., 2011 CP 01 25 02 12

 (c) A claim for contents coverage under 

a tenant's policy if the rented 

premises are 10,000 square feet or 

less and the policy covers only 

locations in Florida. 

E. Sinkhole Collapse Coverage Removed 

Sinkhole Collapse coverage is removed, as 

indicated in Paragraphs E.1. through E.4.; and 

coverage for Catastrophic Ground Cover Collapse 

is added instead as set forth in Paragraph F. 

 1. In the Causes Of Loss – Basic Form and in the 

Standard Property Policy, Sinkhole Collapse is 

deleted from the Covered Causes of Loss and 

sinkhole collapse is no longer an exception to 

the Earth Movement Exclusion. 

 2. In the Causes Of Loss – Broad Form, Sinkhole 

Collapse is deleted from the Covered Causes 

of Loss and from the Additional Coverage – 

Collapse; and sinkhole collapse is no longer an 

exception to the Earth Movement Exclusion. 

 3. In the Causes Of Loss – Special Form, 

Sinkhole Collapse is deleted from the 

"specified causes of loss" and is no longer an 

exception to the Earth Movement Exclusion. 

 4. In the Mortgageholders Errors And Omissions 

Coverage Form, Sinkhole Collapse is deleted 

from the Covered Causes of Loss under 

Coverage B and from the "specified causes of 

loss", and is no longer an exception to the 

Earth Movement Exclusion. 

Further, this Coverage Part does not insure 

against Sinkhole Loss as defined in Florida law 

unless an endorsement for Sinkhole Loss is made 

part of this policy. However, if Sinkhole Loss 

causes Catastrophic Ground Cover Collapse, 

coverage is provided for the resulting Catastrophic 

Ground Cover Collapse even if an endorsement 

for Sinkhole Loss is not made part of this policy. 

F. The following is added to this Coverage Part as a 

Covered Cause of Loss. In the Causes Of Loss – 

Special Form and Mortgageholders Errors And 

Omissions Coverage Form, the following is also 

added as a "specified cause of loss". However, as 

a "specified cause of loss", the following does not 

apply to the Additional Coverage – Collapse. 

Catastrophic Ground Cover Collapse 

We will pay for direct physical loss or damage to 

Covered Property caused by or resulting from 

catastrophic ground cover collapse, meaning 

geological activity that results in all of 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 building, including 

the foundation; and 

4. The insured structure being condemned and 

ordered to be vacated by the governmental 

agency authorized by law to issue such an 

order for that structure. 

However, damage consisting merely of the settling 

or cracking of a foundation, structure or building 

does not constitute loss or damage resulting from 

a catastrophic ground cover collapse. 

The Earth Movement Exclusion and the Collapse

Exclusion do not apply to coverage for 

Catastrophic Ground Cover Collapse. 

Coverage for Catastrophic Ground Cover Collapse 

does not increase the applicable Limit of 

Insurance. Regardless of whether loss or damage 

attributable to catastrophic ground cover collapse 

also qualifies as Sinkhole Loss or Earthquake (if 

either or both of those causes of loss are covered 

under this Coverage Part), only one Limit of 

Insurance will apply to such loss or damage. 

G. The following applies to the Additional Coverage 

– Civil Authority under the Business Income (And 

Extra Expense) Coverage Form, Business Income 

(Without Extra Expense) Coverage Form and 

Extra Expense Coverage Form: 

1. The Additional Coverage – Civil Authority 

includes a requirement that the described 

premises are not more than one mile from the 

damaged property. With respect to described 

premises located in Florida, such one-mile 

radius does not apply. 

2. The Additional Coverage – Civil Authority is 

limited to a coverage period of up to four 

weeks. With respect to described premises 

located in Florida, such four-week period is 

replaced by a three-week period. 

 3. Civil Authority coverage is subject to all other 

provisions of that Additional Coverage. 

Case 1:20-cv-22049-KMM Document 1-3 Entered on FLSD Docket 05/15/2020 Page 79 of 90
CP 01 25 02 12 © Insurance Services Office, Inc., 2011 Page 3 of 3

H. The following provisions are added to the Duties 

In The Event Of Loss Or Damage Loss 

Condition: 

(1) A claim, supplemental claim or 

reopened claim for loss or damage 

caused by hurricane or other windstorm 

is barred unless notice of claim is given 

to us in accordance with the terms of 

this policy within three years after the 

hurricane first made landfall or a 

windstorm other than hurricane caused 

the covered damage. (Supplemental 

claim or reopened claim means an 

additional claim for recovery from us for 

losses from the same hurricane or other 

windstorm which we have previously 

adjusted pursuant to the initial claim.) 

This provision concerning time for 

submission of claim, supplemental claim 

or reopened claim does not affect any 

limitation for legal action against us as 

provided in this policy under the Legal 

Action Against Us Condition, including 

any amendment to that condition. 

(2) Any inspection or survey by us, or on 

our behalf, of property that is the subject 

of a claim, will be conducted with at 

least 48 hours' notice to you. The 48-

hour notice may be waived by you. 

 I. The following definition of structural damage is 

added with respect to the coverage provided 

under this endorsement: 

"Structural damage" means a covered 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 

represent 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 exceed 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 building, or any 

portion of the 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 building as defined within the Florida 

Building Code; or 

5. Damage occurring on or after October 15, 

2005, that qualifies as substantial structural 

damage as defined in the Florida Building 

Code. 

Case 1:20-cv-22049-KMM Document 1-3 Entered on FLSD Docket 05/15/2020 Page 80 of 90
LD-5S23j (03/14)

SIGNATURES

Named Insured

4-UP CORP

Endorsement Number

Policy Symbol

FS

Policy Number

FSF15744042 001

Policy Period

03-10-2020 to 03-10-2021

Effective Date of Endorsement

Issued By (Name of Insurance Company)

Westchester Surplus Lines Insurance Company

Insert the policy number. The remainder of the information is to be completed only when this endorsement is issued subsequent to the preparation of the policy.

THE ONLY SIGNATURES APPLICABLE TO THIS POLICY ARE THOSE REPRESENTING THE COMPANY

NAMED ON THE FIRST PAGE OF THE DECLARATIONS.

By signing and delivering the policy to you, we state that it is a valid contract.

ILLINOIS UNION INSURANCE COMPANY (A stock company)

525 W. Monroe Street, Suite 400, Chicago, Illinois 60661

WESTCHESTER SURPLUS LINES INSURANCE COMPANY (A stock company)

Royal Centre Two, 11575 Great Oaks Way, Suite 200, Alpharetta, GA 30022

 

 ____________________________________

 Authorized Representative

Case 1:20-cv-22049-KMM Document 1-3 Entered on FLSD Docket 05/15/2020 Page 81 of 90
IL 00 17 11 98

IL 00 17 11 98 Copyright, Insurance Services Office, Inc., 1998 Page 1 of 1 o

COMMON POLICY CONDITIONS

All Coverage Parts included in this policy are subject to the following conditions.

A. Cancellation

1. The first Named Insured shown in the Declarations may cancel this policy by mailing or delivering to us advance written notice of cancellation.

2. We may cancel this policy by mailing or delivering to the first Named Insured written notice

of cancellation at least:

a. 10 days before the effective date of cancellation if we cancel for nonpayment of premium; or

b. 30 days before the effective date of cancellation if we cancel for any other reason.

3. We will mail or deliver our notice to the first

Named Insured's last mailing address known to

us.

4. Notice of cancellation will state the effective

date of cancellation. The policy period will end

on that date.

5. If this policy is cancelled, we will send the first

Named Insured any premium refund due. If we

cancel, the refund will be pro rata. If the first

Named Insured cancels, the refund may be

less than pro rata. The cancellation will be effective even if we have not made or offered a

refund.

6. If notice is mailed, proof of mailing will be sufficient proof of notice.

B. Changes

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.

C. 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.

D. Inspections And Surveys

1. We have the right to:

a. Make inspections and surveys at any time;

b. Give you reports on the conditions we find;

and

c. Recommend changes.

2. 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:

a. Are safe or healthful; or

b. Comply with laws, regulations, codes or

standards.

3. Paragraphs 1. and 2. 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.

4. Paragraph 2. 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.

E. Premiums

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.

F. 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.

Case 1:20-cv-22049-KMM Document 1-3 Entered on FLSD Docket 05/15/2020 Page 82 of 90
Chubb Producer Compensation

Practices & Policies

Chubb believes that policyholders should have access to information about Chubb'spractices and policies related to the

payment of compensation to brokers and independent agents. You can obtain that information by accessing our website

at http://www.chubbproducercompensation.com or by calling the following toll-free telephone number: 1-866-512-2862.

ALL-20887 (10/06) Page 1 of 1

Case 1:20-cv-22049-KMM Document 1-3 Entered on FLSD Docket 05/15/2020 Page 83 of 90
TRADE OR ECONOMIC SANCTIONS ENDORSEMENT

Named Insured

4-UP CORP

Endorsement Number

Policy Symbol

CP

Policy Number

FSF15744042 001

Policy Period

03-10-2020 to 03-10-2021

Effective Date of Endorsement

Issued By (Name of Insurance Company)

Westchester Surplus Lines Insurance Company

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

 

This insurance does not apply to the extent that trade or economic sanctions or other laws or regulations prohibit 

us from providing insurance, including, but not limited to, the payment of claims. All other terms and conditions of

policy remain unchanged.

 Authorized Agent

ALL-21101 (11/06) Ptd. in U.S.A. Page 1 of 1

Case 1:20-cv-22049-KMM Document 1-3 Entered on FLSD Docket 05/15/2020 Page 84 of 90
Questions About Your Insurance?

Answers to questions about your insurance, coverage information, or assistance in resolving

complaints can be obtained by calling Chubb, Customer Support Service Department, at 1-800-

352-4462.

ALL-5X45 (11/96) Ptd. in U.S.A. Page 1 of 1

1

Case 1:20-cv-22049-KMM Document 1-3 Entered on FLSD Docket 05/15/2020 Page 85 of 90
Claims Directory

Claims or Loss Notices related to this policy should be reported to the following:

Claim Office Email and Fax Location

Chubb First Notices Email: P.O. Box 5122

North American ChubbClaimsFirstNotice@Chubb.com Scranton, PA

Claims 18505-0554

First Notices Fax:

215-640-5041 or

1-877-395-0310

General Correspondence Fax:

1-866-635-5688

AWB0311 (02/16) © Chubb. 2016. All rights reserved. Page 1 of 1

Case 1:20-cv-22049-KMM Document 1-3 Entered on FLSD Docket 05/15/2020 Page 86 of 90
MINIMUM EARNED PREMIUM ENDORSEMENT

Named Insured

4-UP CORP

Endorsement Number

Policy Symbol

FS

Policy Number

FSF15744042 001

Policy Period

03-10-2020to 03-10-2021

Effective Date of Endorsement

Issued By (Name of Insurance Company)

Westchester Surplus Lines Insurance Company

Insert the policy number. The remainder of the information is to be completed only when this endorsement is issued subsequent to the preparation of the policy.

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

This endorsement modifies insurance provided under the following:

COMMERCIAL PROPERTY COVERAGE PART

COMMERCIAL GENERAL LIABILITY COVERAGE PART

The following is added to Section IV - Conditions:

Cancellation by You; Minimum Earned Premium

If this policy is cancelled at your request, there will be a minimum earned premium retained by us, determined as follows:

(i) Minimum Earned Premium at inception: $ _______________ , or

(ii) Minimum Earned Premium at inception: 25% of Policy Term Premium

whichever is greater.

All other terms and conditions of this policy remain unchanged.

AWB0310 (09-15)

© Chubb. 2016. All rights reserved. Page 1 of 1

Case 1:20-cv-22049-KMM Document 1-3 Entered on FLSD Docket 05/15/2020 Page 87 of 90
SL-44730a (01/16)

SERVICE OF SUIT ENDORSEMENT - FLORIDA

Named Insured 

 4-UP CORP

Endorsement Number 

Policy Symbol 

FS

Policy Number 

FSF15744042 001

Policy Period

03-10-2020

 

 to

 

03-10-2021

Effective Date of Endorsement

Issued By (Name of Insurance Company) 

Westchester Surplus Lines Insurance Company

Insert the policy number. The remainder of the information is to be completed only when this endorsement is issued subsequent to the preparation of the policy.

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

Information about service of suits upon the company is given below. Service of process of suits against the

company may be made upon the following person, or another person the company may designate:

Chief Financial Officer of the State of Florida

Department of Financial Services

200 E. Gaines Street

Tallahassee, FL 32399

The person named above is authorized and directed to accept service of process on the company's behalf in any

action, suit or proceeding instituted against the company. If the insured requests, the company will give the

insured a written promise that a general appearance will be entered on the company's behalf if a suit is brought.

If the insured requests, the company will submit to the jurisdiction of any court of competent jurisdiction. The

company will accept the final decision of that court or any Appellate Court in the event of an appeal. However,

nothing in this endorsement constitutes a waiver of the company’s right to: remove an action to a United States

District Court, seek a transfer of a case to another court, or to enforce policy provisions governing choice of law or

venue selection, as may be permitted by the laws of the United States, or of any state in the United States.

Florida law requires that the Chief Financial Officer of the State of Florida be designated as the company's agent

for service of process. In Florida the company designates the Chief Financial Officer as the company's true and

lawful attorney upon whom service of process on the company's behalf may be made. The company also

authorizes the Chief Financial Officer to mail process received on the company's behalf to the company person

named below.

Mr. Paul Bech, Esq., Associate General Counsel

Chubb

436 Walnut Street

Philadelphia, PA 19106-3703

NOTHING HEREIN CONTAINED SHALL BE HELD TO VARY, ALTER, WAIVE OR EXTEND ANY OF THE

TERMS, CONDITIONS, OR LIMITATIONS OF THE POLICY TO WHICH THIS ENDORSEMENT IS ATTACHED

OTHER THAN AS ABOVE STATED.

________________________________________

 Authorized Representative

Case 1:20-cv-22049-KMM Document 1-3 Entered on FLSD Docket 05/15/2020 Page 88 of 90
ALL-42490b (07/16)

U.S. FOREIGN ACCOUNT

TAX COMPLIANCE ACT (“FATCA”)

The U.S. Foreign Account Tax Compliance Act, commonly known as “FATCA”, became the law in the U.S. in

March of 2010 and becomes effective July 1, 2014. Pursuant to FATCA, brokers, producers, agents and/or clients

may need to obtain withholding certificates from insurance companies. For information on how to obtain the

applicable withholding certificate from Chubb U.S. insurance companies, please go to the following web site:

http://www2.chubb.com/us-en/u-s-foreign-account-tax-compliance-act-fatca.aspx

Case 1:20-cv-22049-KMM Document 1-3 Entered on FLSD Docket 05/15/2020 Page 89 of 90
IL P 001 01 04

IL P 001 01 04 © ISO Properties, Inc., 2004 Page 1 of 1

U.S. TREASURY DEPARTMENT'S OFFICE OF FOREIGN 

ASSETS CONTROL ("OFAC") 

ADVISORY NOTICE TO POLICYHOLDERS 

No coverage is provided by this Policyholder Notice nor can it be construed to replace any provisions of your policy. You should read your policy and review your Declarations page for complete information on the coverages you 

are provided. 

This Notice provides information concerning possible impact on your insurance coverage due to directives issued 

by OFAC. Please read this Notice carefully. 

The Office of Foreign Assets Control (OFAC) administers and enforces sanctions policy, based on Presidential 

declarations of "national emergency". OFAC has identified and listed numerous: 

! Foreign agents; 

! Front organizations; 

! Terrorists; 

! Terrorist organizations; and 

! Narcotics traffickers; 

as "Specially Designated Nationals and Blocked Persons". This list can be located on the United States Treasury's 

web site ñ http//www.treas.gov/ofac. 

In accordance with OFAC regulations, if it is determined that you or any other insured, or any person or entity 

claiming the benefits of this insurance has violated U.S. sanctions law or is a Specially Designated National and 

Blocked Person, as identified by OFAC, this insurance will be considered a blocked or frozen contract and all 

provisions of this insurance are immediately subject to OFAC. When an insurance policy is considered to be such 

a blocked or frozen contract, no payments nor premium refunds may be made without authorization from OFAC. 

Other limitations on the premiums and payments also apply. 

Case 1:20-cv-22049-KMM Document 1-3 Entered on FLSD Docket 05/15/2020 Page 90 of 90