Exhibit A
Hiscox Insurance Company Inc.

Your Insurance documents

Enclosed you will find the policy documents that make up your insurance contract with us.

Please read through all of these documents. If you have any questions or need to update any of your information please call

us at 800-867-4001 (Mon-Fri, 7am-10pm EST).

Your insurance documents

Declarations Page

This contains specific policy information, such as the limits and deductibles you have selected.

Policy Wording

This details the terms and conditions of your coverage, subject to policy endorsements.

Endorsements

These documents modify the Policy Wording or Declarations Page. These include relevant terms and conditions as

required by your state and are part of your policy.

Notices

These documents provide information that may affect your coverage such as optional terrorism coverage (if

purchased) and other important items required by your state.

Reporting a claim

Please inform us immediately if you have a claim or loss to report. Please have your policy number available so we

can handle your call quickly.

Email: reportaclaim@hiscox.com

Phone: 866-424-8508

Mail: Attn: Direct Claims

Hiscox

520 Madison Avenue - 32nd Floor

New York, NY, 10022

EXHIBIT 

A
Declarations Page
HISCOX INSURANCE COMPANY INC. (A Stock Company)

104 South Michigan Avenue, Suite 600, Chicago, Illinois 60603

BOP D001 01 10 Includes copyrighted material of Insurance Services Office, Inc., with

its permission. © ISO Properties, Inc., 2005

Page 1

Businessowners Insurance Declarations

In return for the payment of the premium, and subject to all the terms of this Policy, we agree with you to provide the

insurance as stated in this Policy.

Policy No.: UDC-1575520-BOP-19

Renewal of: UDC-1575520-BOP-18

Named Insured: CHIEF OF STAFF LLC

Address: 750 Main St Ste 1304

Hartford, CT 06103

Policy period:

From: April 30, 2019 To: April 30, 2020

At 12:01 A.M. (Standard Time) at the address shown above.

Form of Business: Limited Liability Company

Premises Information:

Premises Number: 1 Building Number: 1

Premises Address: 750 Main St Ste 1304

Hartford, CT 06103

Section I - Property

Property Coverage Limits of Insurance

Premises Number: 1

Building Number: 1

Limit of Insurance: $ 50,000

Covered Property: Business Personal Property

Deductibles (Apply per location , per occurrence):

Premises Number: 1

Deductible: $ 500

Optional Coverage/ Glass Deductible: $ 500

Additional Coverages - No Optional Higher Limits or extended number of days apply

Coverage Extensions - No Optional Higher Limits apply

Optional Coverages do not apply

Section II - Liability and Medical Expenses
HISCOX INSURANCE COMPANY INC. (A Stock Company)

104 South Michigan Avenue, Suite 600, Chicago, Illinois 60603

BOP D001 01 10 Includes copyrighted material of Insurance Services Office, Inc., with

its permission. © ISO Properties, Inc., 2005

Page 2

Liability and Medical Expenses: $ 2,000,000 Per Occurrence

Products/Completed Operations Aggregate: See policy for details

Other Than Products/Completed Operations

Aggregate:

See policy for details

Damage to Premises Rented to You: $ 50,000 Any one premises

Medical Expenses: $ 5,000 Per Person

Total Premium: $ 619.00

Attachments: See attached Forms and Endorsements Schedule.

IN WITNESS WHEREOF, the Insurer indicated above has caused this Policy to be signed by its President and Secretary, but this Policy shall not be effective unless also signed by the Insurer's duly

authorized representative.

President

Secretary

Authorized Representative
HISCOX INSURANCE COMPANY INC. (A Stock Company)

104 South Michigan Avenue, Suite 600, Chicago, Illinois 60603

INT D001 01 10 Page 1 of 1

Forms and Endorsements Schedule

Forms and Endorsements made part of this policy at time of issue:

BOP D001 01 10 - Businessowners Insurance Declarations

BP 00 03 01 10 - Business Owners Policy Coverage Form

BOP E5206 CW (03/10) - Exclusion - Personal Information

BOP E5208 CW (03/10) - Definition of Employee

BOP E5211 CW (03/10) - Exclusion - Intercompany Products Suits

BOP E5212 CW (03/10) - Lock and Key Replacement

BOP E5214 CW (03/10) - Notice Information

BOP E5215 CW (03/10) - Right and Duty to Select Defense Counsel

BOP E5217 CW (03/10) - Cancellation Provision (14 Day Full Refund)

BP 05 95 01 06 - Electronic Data Liability

BP 05 01 07 02 - Calculation of Premium

BP 04 54 01 06 - Newly Acquired Organizations

BP 02 11 03 12 - Connecticut Changes

BOP E5202 CW (03/10) - Aggregate Limit Endorsement (Double Limit)

BOP E5422 CW (02/15) - Blanket Additional Insured - Lessors of Premises, Clients

BP 05 23 01 15 - Cap On Losses From Certified Acts Of Terrorism

BP 05 15 01 15 - Disclosure Pursuant To Terrorism Risk Insurance Act

BP 04 04 01 10 - Hired Auto and Non-Owned Coverage

INT N001 CW (01/09) - Economic And Trade Sanctions Policyholder Notice
Policy Wording
 

BUSINESSOWNERS

BP 00 03 01 10

BP 00 03 01 10 © Insurance Services Office, Inc., 2009 Page 1 of 49

BUSINESSOWNERS 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 Coverage Form the words "you" and 

"your" refer to the Named Insured shown in the Declarations. The words "we", "us" and "our" refer to th

Company providing this insurance. 

In Section – Liability, the word "insured" means any 

person or organization qualifying as such under Paragraph C. Who Is An Insured. 

Other words and phrases that appear in quotation 

marks have special meaning. Refer to Paragraph H.

Property Definitions in Section – Property and Paragraph F. Liability And Medical Expenses Definitions in 

Section – Liability.

SECTION I – PROPERTY 

A. Coverage 

We will pay for direct physical loss of or damage t

Covered Property at the premises described in the 

Declarations caused by or resulting from any Covered Cause of Loss. 

 1. Covered Property 

Covered Property includes Buildings as described under Paragraph a. below, Business 

Personal Property as described under Paragraph b. below, or both, depending on whether 

a Limit of Insurance is shown in the Declarations for that type of property. Regardless of 

whether coverage is shown in the Declarations 

for Buildings, Business Personal Property, or 

both, there is no coverage for property described under Paragraph 2. Property Not Covered. 

 a. Buildings, meaning the buildings and structures at the premises described in the Declarations, including: 

 (1) Completed additions; 

 (2) Fixtures, including outdoor fixtures; 

 (3) Permanently installed: 

 (a) Machinery; and 

 (b) Equipment; 

 (4) Your personal property in apartments, 

rooms or common areas furnished by 

you as landlord; 

 (5) Personal property owned by you that is 

used to maintain or service the buildings 

or structures or the premises, including: 

 (a) Fire extinguishing equipment; 

 (b) Outdoor furniture; 

(c) Floor coverings; and 

 (d) Appliances used for refrigerating, 

ventilating, cooking, dishwashing or 

laundering; 

 (6) If not covered by other insurance: 

 (a) Additions under construction, alterations and repairs to the buildings or 

structures; 

 (b) Materials, equipment, supplies and 

temporary structures, on or within 

100 feet of the described premises, 

used for making additions, alterations or repairs to the buildings or 

structures. 

 b. Business Personal Property located in or on 

the buildings at the described premises or 

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

of the described premises, including: 

 (1) Property you own that is used in your 

business; 

 (2) Property of others that is in your care, 

custody or control, except as otherwise 

provided in Loss Payment Property Loss 

Condition Paragraph E.5.d.(3)(b);

 (3) Tenant's improvements and betterments. Improvements and betterments 

are fixtures, alterations, installations or 

additions: 

 (a) Made a part of the building or structure you occupy but do not own; and 

 (b) You acquired or made at your expense but cannot legally remove; 

 (4) Leased personal property which you 

have a contractual responsibility to insure, unless otherwise provided for under Paragraph 1.b.(2); and 

 (5) Exterior building glass, if you are a tenant and no Limit of Insurance is shown 

in the Declarations for Building property. 

The glass must be owned by you or in 

your care, custody or control. 
Page 2 of 49 © Insurance Services Office, Inc., 2009 BP 00 03 01 10

2. Property Not Covered 

Covered Property does not include: 

 a. Aircraft, automobiles, motortrucks and other 

vehicles subject to motor vehicle registration; 

 b. "Money" or "securities" except as provided 

in the: 

 (1) Money And Securities Optional Coverage; or 

 (2) Employee Dishonesty Optional Coverage; 

 c. Contraband, or property in the course of 

illegal transportation or trade; 

 d. Land (including land on which the property 

is located), water, growing crops or lawns; 

 e. Outdoor fences, radio or television antennas (including satellite dishes) and their 

lead-in wiring, masts or towers, signs (other 

than signs attached to buildings), trees, 

shrubs or plants, all except as provided in 

the: 

 (1) Outdoor Property Coverage Extension; 

or 

 (2) Outdoor Signs Optional Coverage; 

 f. Watercraft (including motors, equipment 

and accessories) while afloat; 

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

"valuable papers and records"; except as 

otherwise provided in this policy; 

h. "Computer(s)" which are permanently installed or designed to be permanently installed in any aircraft, watercraft, motortruck 

or other vehicle subject to motor vehicle 

registration. This paragraph does not apply 

to "computer(s)" while held as "stock"; 

"Electronic data", except as provided under 

Additional Coverages – Electronic Data. 

This Paragraph does not apply to your 

"stock" of prepackaged software. 

Animals, unless owned by others and 

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

"stock" while inside of buildings. 

3. Covered Causes Of Loss 

Risks of direct physical loss unless the loss is: 

 a. Excluded in Paragraph B. Exclusions in 

Section or 

 b. Limited in Paragraph 4. Limitations in Section 

 4. Limitations 

 a. We will not pay for loss of or damage to: 

 (1) 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. 

(2) 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. 

 (3) 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. This limitation 

does not apply to the Optional Coverage 

for Money and Securities. 

 (4) Property that has been transferred to a 

person or to a place outside the described premises on the basis of unauthorized instructions. 

 (5) The interior of any building or structure 

caused by or resulting from rain, snow, 

sleet, ice, sand or dust, whether driven 

by wind or not, unless: 

 (a) 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 

 (b) The loss or damage is caused by or 

results from thawing of snow, sleet 

or ice on the building or structure. 

b. 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: 

(1) Animals, and then only if they are killed 

or their destruction is made necessary. 

(2) Fragile articles such as glassware, 

statuary, marble, chinaware and porcelain, if broken. This restriction does not 

apply to: 

(a) Glass that is part of the exterior or 

interior of a building or structure; 
BP 00 03 01 10 © Insurance Services Office, Inc., 2009 Page 3 of 49

 (b) Containers of property held for sale; 

or

 (c) Photographic or scientific instrument 

lenses.

 c. For loss or damage by theft, the following 

types of property are covered only up to the 

limits shown: 

 (1) $2,500 for furs, fur garments and garments trimmed with fur. 

(2) $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. 

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

forms. 

5. Additional Coverages 

 a. Debris Removal 

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

will pay your expense to remove debris 

of Covered Property caused by or resulting 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) Extract "pollutants" from land or 

water; or 

 (b) Remove, restore or replace polluted 

land or water. 

 (3) Subject to the exceptions in Paragraph 

(4), the following provisions apply: 

 (a) The most that 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 Paragraph (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. 

 (4) We will pay up to an additional $10,000 

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. 

Therefore, if Paragraphs (4)(a) and/or 

(4)(b) apply, 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 $10,000. 

 (5) Examples 

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). 
Page 4 of 49 © Insurance Services Office, Inc., 2009 BP 00 03 01 10

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 $ 30,000

 Debris Removal Expense 

 Payable 

 Basic Amount $ 10,500

 Additional Amount $ 10,000

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 ($30,000) exceeds 25% of the 

loss payable plus the deductible 

($30,000 is 37.5% of $80,000), and because the sum of the loss payable and 

debris removal expense ($79,500 + 

$30,000 = $109,500) would exceed the 

Limit of Insurance ($90,000). The additional amount of covered debris removal 

expense is $10,000, the maximum payable under Paragraph (4). Thus the total 

payable for debris removal expense in 

this example is $20,500; $9,500 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 of 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 

$2,500, unless a different limit is shown in 

the Declarations, for your liability for fire 

department service charges: 

 (1) Assumed by contract or agreement prior 

to loss; or 

 (2) Required by local ordinance.

 d. Collapse 

The coverage provided under this Additional Coverage – Collapse applies only to 

an abrupt collapse as described and limited 

in Paragraphs 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 

policy or that contains Covered Property 

insured under this policy, 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: 

(i) A cause of loss listed in Paragraph (2)(a) or (2)(b);

(ii) One or more of the "specified 

causes of loss"; 

(iii) Breakage of building glass; 
BP 00 03 01 10 © Insurance Services Office, Inc., 2009 Page 5 of 49

(iv) Weight of people or personal 

property; or 

(v) 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) Awnings; 

 (b) Gutters and downspouts; 

 (c) Yard fixtures; 

 (d) Outdoor swimming pools; 

 (e) Piers, wharves and docks; 

 (f) Beach or diving platforms or appurtenances; 

 (g) Retaining walls; and 

 (h) Walks, roadways and other paved 

surfaces; 

if an abrupt collapse is caused by a 

cause of loss listed in Paragraphs (2)(a)

through (2)(d), we will pay for loss or 

damage to that property only if such loss 

or damage is a direct result of the abrupt 

collapse of a building insured under this 

policy and the property is Covered 

Property under this policy. 

 (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 Paragraphs (2)(a) through (2)(d)

of this Additional Coverage; 

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

(c) The property which collapses is not 

of a kind listed in Paragraph (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 policy. 

(8) The term Covered Cause of Loss includes the Additional Coverage – Collapse as described and limited in Paragraphs d.(1) through d.(7).

 e. 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 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. 

We will not pay the cost to repair any defect 

that caused the loss or damage; but we will 

pay the cost to repair or replace damaged 

parts of fire extinguishing equipment if the 

damage: 

 (1) Results in discharge of any substance 

from an automatic fire protection system; or 

 (2) Is directly caused by freezing. 

 f. Business Income 

 (1) Business Income 

 (a) 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 the described premises. 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 the site at which 

the described premises are located. 
Page 6 of 49 © Insurance Services Office, Inc., 2009 BP 00 03 01 10

With respect to the requirements set 

forth in the preceding paragraph, if 

you occupy only part of the site at 

which the described premises are located, your premises means: 

 (i) The portion of the building which 

you rent, lease or occupy; and 

 (ii) Any area within the building or on 

the site at which the described 

premises are located, if that area 

services, or is used to gain access to, the described premises. 

 (b) We will only pay for loss of Business 

Income that you sustain during the 

"period of restoration" and that occurs within 12 consecutive months 

after the date of direct physical loss 

or damage. We will only pay for ordinary payroll expenses for 60 days 

following the date of direct physical 

loss or damage, unless a greater 

number of days is shown in the Declarations. 

 (c) Business Income means the: 

 (i) Net Income (Net Profit or Loss 

before income taxes) that would 

have been earned or incurred 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; 

and 

 (ii) Continuing normal operating 

expenses incurred, including payroll. 

 (d) Ordinary payroll expenses: 

(i) Means payroll expenses for all 

your employees except: 

 i. Officers; 

 ii. Executives; 

 iii. Department Managers; 

 iv. Employees under contract; 

and 

 v. Additional Exemptions shown 

in the Declarations as: 

Job Classifications; or 

Employees. 

 (ii) Include: 

 i. Payroll; 

 ii. Employee benefits, if directly 

related to payroll; 

 iii. FICA payments you pay; 

 iv. Union dues you pay; and 

 v. Workers' compensation premiums. 

 (2) Extended Business Income 

 (a) 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: 

 (i) Begins on the date property except finished stock is actually repaired, rebuilt or replaced and 

"operations" are resumed; and 

 (ii) 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. 30 consecutive days after the 

date determined in Paragraph 

(a)(i) above, unless a greater 

number of consecutive days is 

shown in the Declarations. 

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. 

 (b) 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. 

 (3) With respect to the coverage provided in 

this Additional Coverage, suspension 

means: 

 (a) The partial slowdown or complete 

cessation of your business activities; 

or 

 (b) That a part or all of the described 

premises is rendered untenantable, if 

coverage for Business Income applies. 
BP 00 03 01 10 © Insurance Services Office, Inc., 2009 Page 7 of 49

 (4) This Additional Coverage is not subject 

to the Limits of Insurance of Section – 

Property. 

 g. Extra Expense 

 (1) We will pay necessary Extra Expense 

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 at the described 

premises. 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 the site at which the 

described premises are located. 

With respect to the requirements set 

forth in the preceding paragraph, if you 

occupy only part of the site at which the 

described premises are located, your 

premises means: 

 (a) The portion of the building which you 

rent, lease or occupy; and 

 (b) Any area within the building or on the 

site at which the described premises 

are located, if that area services, or 

is used to gain access to, the described premises. 

 (2) Extra Expense means expense incurred: 

 (a) To avoid or minimize the suspension 

of business and to continue "operations": 

 (i) At the described premises; or 

 (ii) At replacement premises or at 

temporary locations, including relocation expenses, and costs to 

equip and operate the replacement or temporary locations. 

 (b) To minimize the suspension of business if you cannot continue "operations". 

(c) To: 

 (i) Repair or replace any property; or 

 (ii) Research, replace or restore the 

lost information on damaged 

"valuable papers and records"; 

to the extent it reduces the amount 

of loss that otherwise would have 

been payable under this Additional 

Coverage or Additional Coverage 

Business Income. 

 (3) With respect to the coverage provided in 

this Additional Coverage, suspension 

means: 

 (a) The partial slowdown or complete 

cessation of your business activities; 

or 

 (b) That a part or all of the described 

premises is rendered untenantable, if 

coverage for Business Income applies. 

 (4) We will only pay for Extra Expense that 

occurs within 12 consecutive months after the date of direct physical loss or 

damage. This Additional Coverage is 

not subject to the Limits of Insurance of 

Section – Property. 

 h. 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 for each location under this Additional Coverage is $10,000 for 

the sum of all such expenses arising out of 

Covered Causes of Loss occurring during 

each separate 12-month period of this policy. 

 i. Civil Authority 

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 
Page 8 of 49 © Insurance Services Office, Inc., 2009 BP 00 03 01 10

(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 necessary 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. 

The definitions of Business Income and Extra Expense contained in the Business Income and Extra Expense Additional Coverages also apply to this Civil Authority 

Additional Coverage. The Civil Authority 

Additional Coverage is not subject to the 

Limits of Insurance of Section – Property. 

 j. Money Orders And "Counterfeit Money" 

We will pay for loss resulting directly from 

your having accepted in good faith, in exchange for merchandise, "money" or services: 

 (1) Money orders issued by any post office, 

express company or bank that are not 

paid upon presentation; or 

 (2) "Counterfeit money" that is acquired 

during the regular course of business. 

The most we will pay for any loss under this 

Additional Coverage is $1,000. 

 k. Forgery Or Alteration 

 (1) We will pay for loss resulting directly 

from forgery or alteration of, any check, 

draft, promissory note, bill of exchange 

or similar written promise of payment in 

"money", that you or your agent has issued, or that was issued by someone 

who impersonates you or your agent. 

 (2) If you are sued for refusing to pay the 

check, draft, promissory note, bill of exchange or similar written promise of 

payment in "money", on the basis that it 

has been forged or altered, and you 

have our written consent to defend 

against the suit, we will pay for any reasonable legal expenses that you incur in 

that defense. 

 (3) For the purpose of this coverage, check 

includes a substitute check as defined in 

the Check Clearing for the 21st Century 

Act, and will be treated the same as the 

original it replaced.

(4) The most we will pay for any loss, including legal expenses, under this Additional Coverage is $2,500, unless a 

higher Limit of Insurance is shown in the 

Declarations. 

 l. Increased Cost Of Construction 

 (1) This Additional Coverage applies only to 

buildings insured on a replacement cost 

basis. 

(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 enforcement 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 Paragraphs (3) through (9) of this Additional 

Coverage. 

 (3) The ordinance or law referred to in 

Paragraph (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. 
BP 00 03 01 10 © Insurance Services Office, Inc., 2009 Page 9 of 49

 (5) Under this Additional Coverage, we will 

not pay for: 

 (a) The enforcement of 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 

"fungi", wet rot or dry rot; or 

(b) Any costs associated with the enforcement of 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", 

"fungi", wet rot or dry rot. 

 (6) The most we will pay under this Additional Coverage, for each described 

building insured under Section – Property, is $10,000. If a damaged building(s) 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 each damaged building, is 

$10,000. 

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 repairs or replacement are 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. 

(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 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 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 Property Loss Condition in Section 

 – Property do not include the increased 

cost attributable to enforcement of an 

ordinance or law. The amount payable 

under this Additional Coverage, as 

stated in Paragraph (6) of this Additional 

Coverage, is not subject to such limitation. 

 m. Business Income From Dependent 

Properties 

 (1) We will pay for the actual loss of Business Income you sustain due to physical 

loss or damage at the premises of a dependent property caused by or resulting 

from any Covered Cause of Loss. 

However, this Additional Coverage does 

not apply when the only loss to dependent property is loss or damage to "electronic data", including destruction or corruption of "electronic data". If the 

dependent property sustains loss or 

damage to "electronic data" and other 

property, coverage under this Additional 

Coverage will not continue once the 

other property is repaired, rebuilt or replaced. 

The most we will pay under this Additional Coverage is $5,000 unless a 

higher Limit of Insurance is indicated in 

the Declarations. 

 (2) We will reduce the amount of your Business Income loss, other than Extra Expense, to the extent you can resume 

"operations", in whole or in part, by using any other available: 

 (a) Source of materials; or 

 (b) Outlet for your products. 

 (3) If you do not resume "operations", or do 

not resume "operations" as quickly as 

possible, we will pay based on the 

length of time it would have taken to resume "operations" as quickly as possible. 
Page 10 of 49 © Insurance Services Office, Inc., 2009 BP 00 03 01 10

 (4) Dependent property means property 

owned by others whom you depend on 

to: 

 (a) Deliver materials or services to you, 

or to others for your account. But 

services does not mean water, 

communication or power supply services; 

 (b) Accept your products or services; 

 (c) Manufacture your products for delivery to your customers under contract 

for sale; or 

 (d) Attract customers to your business. 

The dependent property must be located 

in the coverage territory of this policy. 

 (5) The coverage period for Business Income under this Additional Coverage: 

 (a) Begins 72 hours after the time of 

direct physical loss or damage 

caused by or resulting from any Covered Cause of Loss at the premises 

of the dependent property; and 

 (b) Ends on the date when the property 

at the premises of the dependent 

property should be repaired, rebuilt 

or replaced with reasonable speed 

and similar quality. 

 (6) The Business Income coverage period, 

as stated in Paragraph (5), does not include any increased period required due 

to the enforcement of any ordinance or 

law that: 

 (a) Regulates the construction, use or 

repair, or requires the tearing down 

of any property; or 

 (b) Requires any insured or others to 

test for, monitor, clean up, remove, 

contain, treat, detoxify or neutralize, 

or in any way respond to, or assess 

the effects of "pollutants". 

The expiration date of this policy will not 

reduce the Business Income coverage 

period. 

 (7) The definition of Business Income contained in the Business Income Additional Coverage also applies to this 

Business Income From Dependent 

Properties Additional Coverage. 

 n. Glass Expenses 

 (1) We will pay for expenses incurred to put 

up temporary plates or board up openings if repair or replacement of damaged 

glass is delayed. 

(2) 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. 

 o. Fire Extinguisher Systems Recharge 

Expense 

 (1) We will pay: 

 (a) The cost of recharging or replacing, 

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

needed) if they are discharged on or 

within 100 feet of the described 

premises; and 

(b) For loss or damage to Covered 

Property if such loss or damage is 

the result of an accidental discharge 

of chemicals from a fire extinguisher 

or a fire extinguishing system. 

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

 (3) The most we will pay under this Additional Coverage is $5,000 in any one 

occurrence.

 p. Electronic Data 

 (1) 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.

 (2) The Covered Causes of Loss applicable 

to Business Personal Property include a 

computer 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.
BP 00 03 01 10 © Insurance Services Office, Inc., 2009 Page 11 of 49

 (3) 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 $10,000, 

unless a higher Limit of Insurance is 

shown in the Declarations. 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.

 q. Interruption Of Computer Operations 

 (1) 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.

 (2) With respect to the coverage provided 

under this Additional Coverage, the 

Covered Causes of Loss are subject to 

the following:

 (a) Coverage under this Additional Coverage – Interruption Of Computer 

Operations is limited to the "specified 

causes of loss" and Collapse.

 (b) If the Businessowners Coverage 

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.

 (c) The Covered Causes of Loss include 

a computer 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, modify, maintain, repair or replace that system.

 (3) The most we will pay under this Additional Coverage – Interruption Of Computer Operations 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, is 

$10,000 unless a higher Limit of Insurance is shown in the Declarations. 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.

 (4) 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 (3) above has not been exhausted. 

(5) 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 Paragraphs (1) through (4) of this 

Additional Coverage. 
Page 12 of 49 © Insurance Services Office, Inc., 2009 BP 00 03 01 10

 (6) 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 Paragraphs (1) through (4) of this 

Additional Coverage. 

 r. Limited Coverage For "Fungi", Wet Rot 

Or Dry Rot 

 (1) The coverage described in Paragraphs 

r.(2) and r.(6) only applies when the 

"fungi", wet rot or dry rot are the result of 

a "specified cause of loss" other than 

fire or lightning that occurs during the 

policy period and only if all reasonable 

means were used to save and preserve 

the property from further damage at the 

time of and after that occurrence. 

(2) We will pay for loss or damage by 

"fungi", wet rot or dry rot. As used in this 

Limited Coverage, the term loss or 

damage means: 

 (a) Direct physical loss or damage to 

Covered Property caused by "fungi", 

wet rot or dry rot, including the cost 

of removal of the "fungi", wet rot or 

dry rot; 

(b) The cost to tear out and replace any 

part of the building or other property 

as needed to gain access to the 

"fungi", wet rot or dry rot; 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 "fungi", wet rot or 

dry rot are present. 

 (3) The coverage described under 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) which 

take place in a 12-month period (starting 

with the beginning of the present annual 

policy period). With respect to a particular occurrence of loss which results in 

"fungi", wet rot or dry rot, we will not pay 

more than the total of $15,000 even if 

the "fungi", wet rot or dry rot continues 

to be present or active, or recurs, in a 

later policy period. 

(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 

"fungi", wet rot or dry rot, and other loss 

or damage, we will not pay more, for the 

total of all loss or damage, than the applicable Limit of Insurance on the affected Covered Property.

If there is covered loss or damage to 

Covered Property, not caused by 

"fungi", wet rot or dry rot, loss payment 

will not be limited by the terms of this 

Limited Coverage, except to the extent 

that "fungi", wet rot or dry rot causes 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 the Water Damage, 

Other Liquids, Powder Or Molten Material Damage or Collapse Additional Coverages. 

 (6) The following applies only if Business 

Income and/or Extra Expense Coverage 

applies to the described premises and 

only if the suspension of "operations" 

satisfies all the terms and conditions of 

the applicable Business Income and/or 

Extra Expense Additional Coverage. 

 (a) If the loss which resulted in "fungi", 

wet rot or dry rot does not in itself 

necessitate a suspension of "operations", but such suspension is necessary due to loss or damage to 

property caused by "fungi", wet rot or 

dry rot, then our payment under the 

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 "fungi", wet rot or dry rot, 

but remediation of "fungi", wet rot or 

dry rot 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.
BP 00 03 01 10 © Insurance Services Office, Inc., 2009 Page 13 of 49

6. Coverage Extensions 

In addition to the Limits of Insurance of Section 

 – Property, you may extend the insurance 

provided by this policy as provided below. 

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. 

 a. Newly Acquired Or Constructed 

Property 

 (1) Buildings 

If this policy covers Buildings, 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 premises 

other than the one described, 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) Business Personal Property 

If this policy covers Business Personal 

Property, you may extend that insurance 

to apply to: 

 (a) Business Personal Property, 

including such property that you 

newly acquire, at any location 

you acquire; 

(b) 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; or 

(c) Business Personal Property that 

you newly acquire, located at the 

described premises. 

This Extension does not apply to personal property that you temporarily acquire in the course of installing or performing work on such property or your 

wholesale activities. 

The most we will pay for loss or damage 

under this Extension is $100,000 at 

each building. 

 (3) Period Of Coverage

With respect to insurance on or at each 

newly acquired or constructed property, 

coverage will end when any of the following first occurs: 

 (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. 

 b. Personal Property Off-premises 

You may extend the insurance provided by 

this policy to apply to your Covered Property, other than "money" and "securities", 

"valuable papers and records" or accounts 

receivable, while it is in the course of transit 

or at a premises you do not own, lease or 

operate. The most we will pay for loss or 

damage under this Extension is $10,000. 

 c. Outdoor Property 

You may extend the insurance provided by 

this policy to apply to your outdoor fences, 

radio and television antennas (including 

satellite dishes), signs (other than signs attached to buildings), trees, shrubs and 

plants, including debris removal expense. 

Loss or damage must be caused by or result from any of the following 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 $2,500, unless a 

higher Limit of Insurance for Outdoor Property is shown in the Declarations, but not 

more than $1,000 for any one tree, shrub or 

plant. 
Page 14 of 49 © Insurance Services Office, Inc., 2009 BP 00 03 01 10

 d. Personal Effects 

You may extend the insurance that applies 

to Business Personal Property to apply to 

personal effects owned by you, your officers, your partners or "members", your 

"managers" or your employees. This extension does not apply to: 

 (1) Tools or equipment used in your business; or 

 (2) Loss or damage by theft. 

The most we will pay for loss or damage 

under this Extension is $2,500 at each described premises. 

 e. Valuable Papers And Records 

 (1) You may extend the insurance that 

applies to Business Personal Property 

to apply to direct physical loss or damage to "valuable papers and records" 

that you own, or that are in your care, 

custody or control caused by or resulting 

from a Covered Cause of Loss. This 

Coverage Extension includes the cost to 

research, replace or restore the lost information on "valuable papers and records" for which duplicates do not exist. 

(2) This Coverage Extension does not apply 

to: 

 (a) Property held as samples or for 

delivery after sale; and 

 (b) Property in storage away from the 

premises shown in the Declarations. 

 (3) The most we will pay under this Coverage Extension for loss or damage to 

"valuable papers and records" in any 

one occurrence at the described premises is $10,000, unless a higher Limit of 

Insurance for "valuable papers and records" is shown in the Declarations. 

For "valuable papers and records" not at 

the described premises, the most we will 

pay is $5,000. 

 (4) Loss or damage to "valuable papers and 

records" will be valued at the cost of restoration or replacement of the lost or 

damaged information. To the extent that 

the contents of the "valuable papers and 

records" are not restored, the "valuable 

papers and records" will be valued at 

the cost of replacement with blank materials of substantially identical type. 

 (5) Paragraph B. Exclusions in Section – 

Property does not apply to this Coverage Extension except for: 

 (a) Paragraph B.1.c., Governmental 

Action; 

 (b) Paragraph B.1.d., Nuclear Hazard; 

 (c) Paragraph B.1.f., War And Military 

Action; 

 (d) Paragraph B.2.f., Dishonesty; 

 (e) Paragraph B.2.g., False Pretense; 

(f) Paragraph B.2.m.(2), Errors Or 

Omissions; and 

 (g) Paragraph B.3.

f. Accounts Receivable 

 (1) You may extend the insurance that 

applies to Business Personal Property 

to apply to accounts receivable. We will 

pay: 

 (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 loss or damage; and 

 (d) Other reasonable expenses that you 

incur to reestablish your records of 

accounts receivable; 

that result from direct physical loss or 

damage by any Covered Cause of Loss 

to your records of accounts receivable. 

 (2) The most we will pay under this Coverage Extension for loss or damage in any 

one occurrence at the described premises is $10,000, unless a higher Limit of 

Insurance for accounts receivable is 

shown in the Declarations. 

For accounts receivable not at the described premises, the most we will pay 

is $5,000. 

 (3) Paragraph B. Exclusions in Section – 

Property does not apply to this Coverage Extension except for: 

 (a) Paragraph B.1.c., Governmental 

Action; 

 (b) Paragraph B.1.d., Nuclear Hazard; 

 (c) Paragraph B.1.f., War And Military 

Action; 

 (d) Paragraph B.2.f., Dishonesty; 

 (e) Paragraph B.2.g., False Pretense; 

 (f) Paragraph B.3.; and 

 (g) Paragraph B.6., Accounts Receivable Exclusion. 
BP 00 03 01 10 © Insurance Services Office, Inc., 2009 Page 15 of 49

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. These 

exclusions apply whether or not the loss event 

results in widespread damage or affects a substantial area. 

 a. Ordinance Or Law 

 (1) The enforcement of any ordinance or 

law: 

 (a) Regulating the construction, use or 

repair of any property; or 

 (b) Requiring the tearing down of any 

property, including the cost of removing its debris. 

 (2) This exclusion, Ordinance Or Law, applies whether the loss results from: 

 (a) An ordinance or law that is enforced 

even if the property has not been 

damaged; or 

 (b) The increased costs incurred to 

comply with an ordinance or law in 

the course of construction, repair, 

renovation, remodeling or demolition 

of property or removal of its debris, 

following a physical loss to that property. 

 b. Earth Movement 

 (1) Earthquake, including any earth sinking, 

rising or shifting related to such event; 

(2) Landslide, including any earth sinking, 

rising or shifting related to such event; 

(3) Mine subsidence, meaning subsidence 

of a man-made mine, whether or not 

mining activity has ceased; 

(4) Earth sinking (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 

Paragraphs (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. 

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 of or damage to Covered Property. 

 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 policy. 

 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. 
Page 16 of 49 © Insurance Services Office, Inc., 2009 BP 00 03 01 10

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. 

This exclusion does not apply to loss or 

damage to "computer(s)" and "electronic 

data". 

 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. 

 h. Certain Computer-related Losses 

 (1) The failure, malfunction or inadequacy 

of: 

 (a) Any of the following, whether belonging to any insured or to others: 

 (i) "Computer" hardware, including 

microprocessors or other electronic data processing equipment 

as may be described elsewhere 

in this policy; 

 (ii) "Computer" application software 

or other "electronic data" as may 

be described elsewhere in this 

policy; 

 (iii) "Computer" operating systems 

and related software; 

 (iv) "Computer" networks; 

 (v) Microprocessors ("computer" 

chips) not part of any "computer" 

system; or 

 (vi) Any other computerized or electronic equipment or components; 

or 

 (b) Any other products, and any services, data or functions that directly 

or indirectly use or rely upon, in any 

manner, any of the items listed in 

Paragraph (a) above; 

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

or more dates or times. An example is 

the inability of computer software to recognize the year 2000. 

 (2) Any advice, consultation, design, 

evaluation, inspection, installation, maintenance, repair, replacement or supervision provided or done by you or for you 

to determine, rectify or test for, any potential or actual problems described in 

Paragraph (1) above. 
BP 00 03 01 10 © Insurance Services Office, Inc., 2009 Page 17 of 49

However, if excluded loss or damage, as 

described in Paragraph (1) above results in 

a "specified cause of loss" under Section – 

Property, we will pay only for the loss or 

damage caused by such "specified cause 

of loss". 

We will not pay for repair, replacement or 

modification of any items in Paragraph 

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

change any features.

 i. "Fungi", Wet Rot Or Dry Rot 

Presence, growth, proliferation, spread or 

any activity of "fungi", wet rot or dry rot. 

But if "fungi", wet rot or dry rot result in a 

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

loss or damage caused by that "specified 

cause of loss". 

This exclusion does not apply: 

 (1) When "fungi", wet rot or dry rot result 

from fire or lightning; or 

(2) To the extent that coverage is provided 

in the Limited Coverage For "Fungi", 

Wet Rot Or Dry Rot Additional Coverage, with respect to loss or damage by a 

cause of loss other than fire or lightning. 

 j. Virus Or Bacteria 

(1) Any virus, bacterium or other microorganism that induces or is capable of inducing physical distress, illness or disease. 

(2) However, the exclusion in Paragraph (1)

does not apply to loss or damage 

caused by or resulting from "fungi", wet 

rot or dry rot. Such loss or damage is 

addressed in Exclusion i.;

(3) With respect to any loss or damage 

subject to the exclusion in Paragraph 

(1), such exclusion supersedes any exclusion relating to "pollutants". 

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

or resulting from any of the following: 

 a. Electrical Apparatus 

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: 

 (1) Electrical current, including arcing; 

 (2) Electrical charge produced or conducted 

by a magnetic or electromagnetic field; 

 (3) Pulse of electromagnetic energy; or 

 (4) Electromagnetic waves or microwaves. 

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

damage caused by fire. 

We will pay for loss or damage to "computer(s)" due to artificially generated electrical, magnetic or electromagnetic energy if 

such loss or damage is caused by or results 

from: 

 (1) An occurrence that took place within 

100 feet of the described premises; or 

(2) Interruption of electric power supply, 

power surge, blackout or brownout if the 

cause of such occurrence took place 

within 100 feet of the described premises. 

 b. Consequential Losses 

Delay, loss of use or loss of market. 

 c. Smoke, Vapor, Gas 

Smoke, vapor or gas from agricultural 

smudging or industrial operations. 

 d. Steam Apparatus 

Explosion of steam boilers, steam pipes, 

steam engines or steam turbines owned or 

leased by you, or operated under your control. 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. 

 e. Frozen Plumbing 

Water, other liquids, powder or molten material that leaks or flows from plumbing, 

heating, air conditioning or other equipment 

(except fire protective systems) caused by 

or resulting from freezing, unless: 

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

building or structure; or 

 (2) You drain the equipment and shut off 

the supply if the heat is not maintained. 
Page 18 of 49 © Insurance Services Office, Inc., 2009 BP 00 03 01 10

 f. Dishonesty 

Dishonest or criminal acts by you, anyone 

else with an interest in the property, or any 

of your or their partners, "members", officers, "managers", employees, directors, 

trustees, authorized representatives or anyone to whom you entrust the property for 

any purpose: 

 (1) Acting alone or in collusion with others; 

or 

 (2) Whether or not occurring during the 

hours of employment. 

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

employees is not covered. 

With respect to accounts receivable and 

"valuable papers and records", this exclusion does not apply to carriers for hire. 

This exclusion does not apply to coverage 

that is provided under the Employee Dishonesty Optional Coverage. 

g. False Pretense 

Voluntary parting with any property by you 

or anyone else to whom you have entrusted 

the property if induced to do so by any 

fraudulent scheme, trick, device or false 

pretense. 

 h. Exposed Property 

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

 i. Collapse 

(1) Collapse, including any of the following 

conditions of property or any part of the 

property: 

 (a) An abrupt falling down or caving in; 

(b) Loss of structural integrity, including 

separation of parts of the property or 

property in danger of falling down or 

caving in; or 

(c) Any cracking, bulging, sagging, 

bending, leaning, settling, shrinkage 

or expansion as such condition relates to Paragraph i.(1)(a) or i.(1)(b). 

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. 

 (2) This Exclusion i., 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.

 j. Pollution 

We will not pay for loss or damage caused 

by or resulting from the 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". 

 k. Neglect 

Neglect of an insured to use all reasonable 

means to save and preserve property from 

further damage at and after the time of loss. 

l. Other Types Of Loss 

 (1) Wear and tear; 

 (2) Rust or other corrosion, decay, deterioration, hidden or latent defect or any 

quality in property that causes it to damage or destroy itself; 

 (3) Smog; 

 (4) Settling, cracking, shrinking or expansion; 

 (5) Nesting or infestation, or discharge or 

release of waste products or secretions, 

by insects, birds, rodents or other animals; 

(6) Mechanical breakdown, including rupture or bursting caused by centrifugal 

force. 

This exclusion does not apply with respect to the breakdown of "computer(s)"; 

 (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. 
BP 00 03 01 10 © Insurance Services Office, Inc., 2009 Page 19 of 49

But if an excluded cause of loss that is 

listed in Paragraphs (1) through (7) above 

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. 

 m. Errors Or Omissions 

Errors or omissions in: 

 (1) Programming, processing or storing 

data, as described under "electronic 

data" or in any "computer" operations; or 

 (2) Processing or copying "valuable papers 

and records". 

However, we will pay for direct physical loss 

or damage caused by resulting fire or explosion if these causes of loss would be 

covered by this coverage form. 

 n. Installation, Testing, Repair 

Errors or deficiency in design, installation, 

testing, maintenance, modification or repair 

of your "computer" system including "electronic data". 

However, we will pay for direct physical loss 

or damage caused by resulting fire or explosion if these causes of loss would be 

covered by this coverage form. 

 o. Electrical Disturbance 

Electrical or magnetic injury, disturbance or 

erasure of "electronic data", except as provided for under the Additional Coverages of 

Section – Property. 

However, we will pay for direct loss or damage caused by lightning. 

 p. Continuous Or Repeated Seepage Or 

Leakage Of Water 

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. 

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

or resulting from any of the following Paragraphs a. through c. But if an excluded cause 

of loss that is listed in Paragraphs a. through 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 

Weather conditions. But this exclusion only 

applies if weather conditions contribute in 

any way with a cause or event excluded in 

Paragraph B.1. above to produce the loss 

or damage. 

 b. Acts Or Decisions 

Acts or decisions, including the failure to act 

or decide, of any person, group, organization or governmental body. 

c. Negligent Work 

Faulty, inadequate or defective: 

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

 (2) Design, specifications, workmanship, 

repair, construction, renovation, remodeling, grading, compaction; 

 (3) Materials used in repair, construction, 

renovation or remodeling; or 

 (4) Maintenance; 

of part or all of any property on or off the 

described premises. 

 4. Additional Exclusion 

The following applies only to the property 

specified in this Additional Exclusion. 

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. 

 5. Business Income And Extra Expense 

Exclusions 

 a. We will not pay for: 

 (1) Any Extra Expense, or increase of Business Income 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 
Page 20 of 49 © Insurance Services Office, Inc., 2009 BP 00 03 01 10

 (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. 

 (2) Any other consequential loss. 

 b. With respect to this exclusion, suspension 

means: 

 (1) The partial slowdown or complete cessation of your business activities; and 

 (2) That a part or all of the described premises is rendered untenantable, if coverage for Business Income applies. 

6. Accounts Receivable Exclusion 

The following additional exclusion applies to 

the Accounts Receivable Coverage Extension: 

We will not pay for: 

 a. Loss or damage caused by or resulting 

from alteration, falsification, concealment or 

destruction of records of accounts receivable done to conceal the wrongful giving, 

taking or withholding of "money", "securities" or other property. 

This exclusion applies only to the extent of 

the wrongful giving, taking or withholding. 

 b. Loss or damage caused by or resulting 

from bookkeeping, accounting or billing errors or omissions. 

 c. Any loss or damage that requires any audit 

of records or any inventory computation to 

prove its factual existence. 

C. Limits Of Insurance 

 1. The most we will pay for loss or damage in any 

one occurrence is the applicable Limits of Insurance of Section – Property shown in the 

Declarations. 

 2. The most we will pay for loss of or damage to 

outdoor signs attached to buildings is $1,000 

per sign in any one occurrence. 

 3. The amounts of insurance applicable to the 

Coverage Extensions and the following Additional Coverages apply in accordance with the 

terms of such coverages and are in addition to 

the Limits of Insurance of Section – Property: 

a. Fire Department Service Charge; 

b. Pollutant Clean-up And Removal; 

c. Increased Cost Of Construction; 

d. Business Income From Dependent Properties; 

 e. Electronic Data; and 

 Interruption Of Computer Operations. 

 4. Building Limit – Automatic Increase 

 a. In accordance with Paragraph C.4.b., the 

Limit of Insurance for Buildings will automatically increase by 8%, unless a different 

percentage of annual increase is shown in 

the Declarations. 

 b. The amount of increase is calculated as 

follows: 

 (1) Multiply the Building limit that applied on 

the most recent of the policy inception 

date, the policy anniversary date, or any 

other policy change amending the Building limit by: 

(a) The percentage of annual increase 

shown in the Declarations, expressed as a decimal (example: 7% 

is .07); or 

(b) .08, if no percentage of annual increase is shown in the Declarations; 

and 

(2) Multiply the number calculated in accordance with b.(1) by the number of days 

since the beginning of the current policy 

year, or the effective date of the most 

recent policy change amending the 

Building limit, divided by 365. 

Example: 

If: 

The applicable Building limit 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. 

 5. Business Personal Property Limit – 

Seasonal Increase 

 a. Subject to Paragraph 5.b., the Limit of 

Insurance for Business Personal Property is 

automatically increased by: 

 (1) The Business Personal Property – Seasonal Increase percentage shown in the 

Declarations; or 

(2) 25% if no Business Personal Property – 

Seasonal Increase percentage is shown 

in the Declarations; 

to provide for seasonal variances. 
BP 00 03 01 10 © Insurance Services Office, Inc., 2009 Page 21 of 49

b. The increase described in Paragraph 5.a 

will apply only if the Limit of Insurance 

shown for Business Personal Property in 

the Declarations is at least 100% of your 

average monthly values during the lesser 

of: 

 (1) The 12 months immediately preceding 

the date the loss or damage occurs; or 

 (2) The period of time you have been in 

business as of the date the loss or damage occurs. 

D. Deductibles 

 1. We will not pay for loss or damage in any one 

occurrence until the amount of loss or damage 

exceeds the Deductible shown in the Declarations. We will then pay the amount of loss or 

damage in excess of the Deductible up to the 

applicable Limit of Insurance of Section – 

Property. 

 2. Regardless of the amount of the Deductible, 

the most we will deduct from any loss or damage under all of the following Optional Coverages in any one occurrence is the Optional 

Coverage Deductible shown in the Declarations: 

 a. Money and Securities; 

 b. Employee Dishonesty; 

 c. Outdoor Signs; and 

d. Forgery or Alteration. 

But this Optional Coverage Deductible will not 

increase the Deductible shown in the Declarations. This Deductible will be used to satisfy the 

requirements of the Deductible in the Declarations. 

 3. No deductible applies to the following Additional Coverages: 

 a. Fire Department Service Charge; 

 b. Business Income; 

 c. Extra Expense; 

 d. Civil Authority; and 

e. Fire Extinguisher Systems Recharge Expense. 

E. Property Loss Conditions 

 1. Abandonment 

There can be no abandonment of any property 

to us. 

 2. Appraisal 

If we and you disagree on 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 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. 

 (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 

Limits of Insurance of Section – Property. 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. 
Page 22 of 49 © Insurance Services Office, Inc., 2009 BP 00 03 01 10

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. 

 (9) 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. 

 4. Legal Action Against Us 

No one may bring a legal action against us under this insurance unless: 

 a. There has been full compliance with all of 

the terms of this insurance; and 

 b. The action is brought within two years after 

the date on which the direct physical loss or 

damage occurred. 

 5. Loss Payment 

In the event of loss or damage covered by this 

policy: 

 a. 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; 

 (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 Paragraph d.(1)(e) below. 

 b. We will give notice of our intentions within 

30 days after we receive the sworn proof of 

loss. 

 c. We will not pay you more than your financial interest in the Covered Property. 

 d. Except as provided in Paragraphs (2)

through (7) below, we will determine the 

value of Covered Property as follows: 

 (1) At replacement cost without deduction 

for depreciation, subject to the following: 

 (a) If, at the time of loss, the Limit of 

Insurance on the lost or damaged 

property is 80% or more of the full 

replacement cost of the property 

immediately before the loss, we will 

pay the cost to repair or replace, after application of the deductible and 

without deduction for depreciation, 

but not more than the least of the following amounts: 

 (i) The Limit of Insurance under 

Section – Property that applies 

to the lost or damaged property; 

 (ii) The cost to replace, on the same 

premises, the lost or damaged 

property with other property: 

 i. Of comparable material and 

quality; and 

 ii. Used for the same purpose; 

or 

 (iii) The amount that you actually 

spend that is necessary to repair 

or replace the lost or damaged 

property. 

If a building is rebuilt at a new premises, the cost is limited to the cost 

which would have been incurred had 

the building been built at the original 

premises. 

(b) If, at the time of loss, the Limit of 

Insurance applicable to the lost or 

damaged property is less than 80% 

of the full replacement cost of the 

property immediately before the loss, 

we will pay the greater of the following amounts, but not more than the 

Limit of Insurance that applies to the 

property: 

 (i) The actual cash value of the lost 

or damaged property; or 

 (ii) A proportion of the cost to repair 

or replace the lost or damaged 

property, after application of the 

deductible and without deduction 

for depreciation. This proportion 

will equal the ratio of the applicable Limit of Insurance to 80% of 

the cost of repair or replacement. 
BP 00 03 01 10 © Insurance Services Office, Inc., 2009 Page 23 of 49

 (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 on a replacement cost basis 

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: 

 (i) Until the lost or damaged property is actually repaired or replaced; and 

 (ii) Unless the repairs or replacement are made as soon as reasonably possible after the loss or 

damage. 

However, if the cost to repair or replace the damaged building property 

is $2,500 or less, we will settle the 

loss according to the provisions of 

Paragraphs d.(1)(a) and d.(1)(b)

above whether or not the actual repair or replacement is complete. 

 (e) The cost to repair, rebuild or replace 

does not include the increased cost 

attributable to enforcement of any 

ordinance or law regulating the construction, use or repair of any property. 

 (2) If the Actual Cash Value – Buildings 

option applies, as shown in the Declarations, Paragraph (1) above does not apply to Buildings. Instead, we will determine the value of Buildings at actual 

cash value. 

(3) The following property at actual cash 

value: 

 (a) Used or secondhand merchandise 

held in storage or for sale; 

 (b) Property of others. However, 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; 

 (c) Household contents, except personal 

property in apartments or rooms furnished by you as landlord; 

 (d) Manuscripts; and 

 (e) Works of art, antiques or rare articles, including etchings, pictures, 

statuary, marble, bronzes, porcelain 

and bric-a-brac. 

 (4) Glass at the cost of replacement with 

safety glazing material if required by 

law. 

 (5) Tenants' Improvements and Betterments at: 

 (a) Replacement cost if you make repairs promptly. 

 (b) A proportion of your original cost if 

you do not make repairs promptly. 

We will determine the proportionate 

value as follows: 

 (i) Multiply the original cost by the 

number of days from the loss or 

damage to the expiration of the 

lease; and 

 (ii) Divide the amount determined in 

(i) 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. 

 (c) Nothing if others pay for repairs or 

replacement. 

 (6) Applicable only to the Optional Coverages: 

 (a) "Money" at its face value; and 

 (b) "Securities" at their value at the close 

of business on the day the loss is 

discovered. 

 (7) Applicable only to Accounts Receivable: 

 (a) If you cannot accurately establish the 

amount of accounts receivable outstanding as of the time of loss or 

damage: 

 (i) We will determine the total of the 

average monthly amounts of accounts receivable for the 12 

months immediately preceding 

the month in which the loss or 

damage occurs; and 
Page 24 of 49 © Insurance Services Office, Inc., 2009 BP 00 03 01 10

 (ii) We will adjust that total for any 

normal fluctuations in the amount 

of accounts receivable for the 

month in which the loss or damage occurred or for any demonstrated variance from the average 

for that month. 

 (b) The following will be deducted from 

the total amount of accounts receivable, however that amount is established: 

 (i) The amount of the accounts for 

which there is no loss or damage; 

 (ii) The amount of the accounts that 

you are able to reestablish or collect; 

(iii) An amount to allow for probable 

bad debts that you are normally 

unable to collect; and 

 (iv) All unearned interest and service 

charges. 

 e. Our payment for loss of or damage to personal property of others will only be for the 

account of the owners of the property. We 

may adjust losses with the owners of lost or 

damaged property if other than you. If we 

pay the owners, such payments will satisfy 

your claims against us for the owners' property. 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, provided you have complied 

with all of the terms of this policy; and 

 (1) We have reached agreement with you 

on the amount of loss; or 

 (2) An appraisal award has been made. 

 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 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.

 6. Recovered Property 

If either you or we recover any property after 

loss settlement, that party must give the other 

prompt notice. At your option, you may retain 

the property. But then you must return to us the 

amount we paid to you for the property. We will 

pay recovery expenses and the expenses to 

repair the recovered property, subject to the 

Limits of Insurance of Section – Property. 

 7. Resumption Of Operations 

We will reduce the amount of your: 

 a. 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. 

 b. Extra Expense loss to the extent you can 

return "operations" to normal and discontinue such Extra Expense. 
BP 00 03 01 10 © Insurance Services Office, Inc., 2009 Page 25 of 49

 8. 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 Paragraphs (a)

and (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 Paragraphs 

(1)(a) through (1)(f) above, we will reduce the amount we would otherwise 

pay for the loss or damage by 15%. 

 F. Property General Conditions 

 1. 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 

Form 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. 

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 policy, the mortgageholder 

will still have the right to receive loss payment if the mortgageholder: 

(1) Pays any premium due under this policy 

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 policy 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 policy: 

 (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. 
Page 26 of 49 © Insurance Services Office, Inc., 2009 BP 00 03 01 10

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. 

 3. No Benefit To Bailee 

No person or organization, other than you, having custody of Covered Property will benefit 

from this insurance. 

 4. Policy Period, Coverage Territory 

Under Section – Property: 

 a. We cover loss or damage commencing: 

 (1) During the policy period shown in the 

Declarations; and 

 (2) Within the coverage territory or, with 

respect to property in transit, while it is 

between points in the coverage territory. 

b. The coverage territory is: 

 (1) The United States of America (including 

its territories and possessions); 

 (2) Puerto Rico; and 

 (3) Canada. 

G. Optional Coverages 

If shown as applicable in the Declarations, the fol

lowing Optional Coverages also apply. These coverages are subject to the terms and conditions applicable to property coverage in this policy, excep

as provided below. 

 1. Outdoor Signs 

 a. We will pay for direct physical loss of or 

damage to all outdoor signs at the described premises: 

 (1) Owned by you; or 

 (2) Owned by others but in your care, custody or control. 

 b. Paragraph A.3., Covered Causes Of Loss, 

and Paragraph B., Exclusions in Section – 

Property, do not apply to this Optional Coverage, except for: 

 (1) Paragraph B.1.c., Governmental Action; 

 (2) Paragraph B.1.d., Nuclear Hazard; and 

 (3) Paragraph B.1.f., War And Military Action. 

 c. We will not pay for loss or damage caused 

by or resulting from: 

 (1) Wear and tear; 

 (2) Hidden or latent defect; 

 (3) Rust; 

 (4) Corrosion; or 

 (5) Mechanical breakdown. 

 d. The most we will pay for loss or damage in 

any one occurrence is the Limit of Insurance for Outdoor Signs shown in the Declarations. 

 e. The provisions of this Optional Coverage 

supersede all other references to outdoor 

signs in this policy. 

 2. Money And Securities 

 a. We will pay for loss of "money" and "securities" used in your business while at a bank 

or savings institution, within your living 

quarters or the living quarters of your partners or any employee having use and custody of the property, at the described premises, or in transit between any of these 

places, resulting directly from: 

 (1) Theft, meaning any act of stealing; 

 (2) Disappearance; or 

 (3) Destruction. 

 b. In addition to the Limitations and Exclusions 

applicable to Section – Property, we will 

not pay for loss: 

 (1) Resulting from accounting or arithmetical errors or omissions; 

 (2) Due to the giving or surrendering of 

property in any exchange or purchase; 

or 

(3) Of property contained in any "money"-

operated device unless the amount of 

"money" deposited in it is recorded by a 

continuous recording instrument in the 

device. 
BP 00 03 01 10 © Insurance Services Office, Inc., 2009 Page 27 of 49

 c. The most we will pay for loss in any one 

occurrence is: 

 (1) The limit shown in the Declarations for 

Inside the Premises for "money" and 

"securities" while: 

 (a) In or on the described premises; or 

 (b) Within a bank or savings institution; 

and 

 (2) The limit shown in the Declarations for 

Outside the Premises for "money" and 

"securities" while anywhere else. 

 d. All loss: 

 (1) Caused by one or more persons; or 

 (2) Involving a single act or series of related 

acts; 

is considered one occurrence. 

 e. You must keep records of all "money" and 

"securities" so we can verify the amount of 

any loss or damage. 

 3. Employee Dishonesty 

 a. We will pay for direct loss of or damage to 

Business Personal Property and "money" 

and "securities" resulting from dishonest 

acts committed by any of your employees 

acting alone or in collusion with other persons (except you or your partner) with the 

manifest intent to: 

 (1) Cause you to sustain loss or damage; 

and also 

 (2) Obtain financial benefit (other than salaries, commissions, fees, bonuses, promotions, awards, profit sharing, pensions or other employee benefits earned 

in the normal course of employment) for: 

 (a) Any employee; or 

 (b) Any other person or organization. 

 b. We will not pay for loss or damage: 

 (1) Resulting from any dishonest or criminal 

act that you or any of your partners or 

"members" commit whether acting alone 

or in collusion with other persons. 

(2) Resulting from any dishonest act committed by any of your employees (except 

as provided in Paragraph a.), "managers" or directors: 

 (a) Whether acting alone or in collusion 

with other persons; or 

(b) While performing services for you or 

otherwise. 

(3) The only proof of which as to its existence or amount is: 

 (a) An inventory computation; or 

 (b) A profit and loss computation. 

 c. The most we will pay for loss or damage in 

any one occurrence is the Limit of Insurance for Employee Dishonesty shown in the 

Declarations. 

d. All loss or damage: 

 (1) Caused by one or more persons; or 

 (2) Involving a single act or series of acts; 

is considered one occurrence. 

 e. If any loss is covered: 

 (1) Partly by this insurance; and 

(2) Partly by any prior cancelled or terminated insurance that we or any affiliate 

had issued to you or any predecessor in 

interest; 

the most we will pay is the larger of the 

amount recoverable under this insurance or 

the prior insurance. 

We will pay only for loss or damage you 

sustain through acts committed or events 

occurring during the policy period. Regardless of the number of years this policy remains in force or the number of premiums 

paid, no Limit of Insurance cumulates from 

year to year or period to period. 

 f. This Optional Coverage is cancelled as to 

any employee immediately upon discovery 

by: 

 (1) You; or 

 (2) Any of your partners, "members", "managers", officers or directors not in collusion with the employee; 

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

 g. We will pay only for covered loss or damage sustained during the policy period and 

discovered no later than one year from the 

end of the policy period. 

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

have recovered under that insurance except that the time within which to discover 

loss or damage had expired, we will pay for 

it under this Optional Coverage, provided: 

 (1) This Optional Coverage became effective at the time of cancellation or termination of the prior insurance; and 
Page 28 of 49 © Insurance Services Office, Inc., 2009 BP 00 03 01 10

 (2) The loss or damage would have been 

covered by this Optional Coverage had 

it been in effect when the acts or events 

causing the loss or damage were committed or occurred. 

 The insurance under Paragraph h. above is 

part of, not in addition to, the Limit of Insurance applying to this Optional Coverage 

and is limited to the lesser of the amount 

recoverable under: 

 (1) This Optional Coverage as of its effective date; or 

 (2) The prior insurance had it remained in 

effect. 

 j. With respect to the Employee Dishonesty 

Optional Coverage in Paragraph G.3., employee means: 

 (1) Any natural person: 

 (a) While in your service or for 30 days 

after termination of service; 

(b) Who you compensate directly by 

salary, wages or commissions; and 

(c) Who you have the right to direct and 

control while performing services for 

you; 

 (2) Any natural person who is furnished 

temporarily to you: 

 (a) To substitute for a permanent employee as defined in Paragraph (1)

above, who is on leave; or 

(b) To meet seasonal or short-term 

workload conditions; 

 (3) Any natural person who is leased to you 

under a written agreement between you 

and a labor leasing firm, to perform duties related to the conduct of your business, but does not mean a temporary 

employee as defined in Paragraph (2) 

above; 

(4) Any natural person who is a former 

employee, director, partner, member, 

manager, representative or trustee retained as a consultant while performing 

services for you; or 

(5) Any natural person who is a guest student or intern pursuing studies or duties, 

excluding, however, any such person 

while having care and custody of property outside any building you occupy in 

conducting your business. 

But employee does not mean: 

 (1) Any agent, broker, factor, commission 

merchant, consignee, independent contractor or representative of the same 

general character; or 

(2) Any "manager", director or trustee except while performing acts coming within 

the usual duties of an employee. 

4. Equipment Breakdown Protection Coverage 

 a. We will pay for direct loss of or damage to 

Covered Property caused by or resulting 

from a mechanical breakdown or electrical 

failure to pressure, mechanical or electrical 

machinery and equipment. 

Mechanical breakdown or electrical failure 

to pressure, mechanical or electrical machinery and equipment does not mean any: 

(1) Malfunction including but not limited to 

adjustment, alignment, calibration, 

cleaning or modification; 

 (2) Leakage at any valve, fitting, shaft seal, 

gland packing, joint or connection; 

(3) Damage to any vacuum tube, gas tube, 

or brush; or 

(4) The functioning of any safety or protective device. 

b. Paragraphs A.4.a.(1) and A.4.a.(2), Limitations, do not apply to this Optional Coverage. 

c. With respect to the coverage provided by 

this Optional Coverage, the following exclusions in Paragraph B. Exclusions do not 

apply: 

(1) Paragraph B.2.a. Electrical Apparatus; 

(2) Paragraph B.2.d. Steam Apparatus;

and 

(3) Paragraph B.2.l.(6) Mechanical Breakdown.

 d. With respect to the coverage provided by 

this Optional Coverage, Paragraph

G.1.c.(5) of the Outdoor Sign Optional 

Coverage does not apply. 

e. If a dollar deductible is shown in the Declarations for this Optional Coverage, we will 

first subtract the applicable deductible 

amount from any loss we would otherwise 

pay. We will then pay the amount of loss in 

excess of the applicable deductible up to 

the applicable limit for this coverage. 

If no optional deductible is chosen for this 

Optional Coverage, the Property Deductible 

shown in the Declarations applies. 
BP 00 03 01 10 © Insurance Services Office, Inc., 2009 Page 29 of 49

 f. With respect to Additional Coverages 5.f.

Business Income and 5.g. Extra Expense, if the 72-hour time period in the 

definition of "period of restoration" (hereinafter referred to as time deductible) is 

amended for this Optional Coverage as 

shown in the Declarations, we will not pay 

for any Business Income loss that occurs 

during the consecutive number of hours 

shown as the time deductible in the Declarations immediately following a mechanical 

breakdown or electrical failure. If a time deductible is shown in days, each day shall 

mean 24 consecutive hours. 

As respects the coverage provided by this 

Optional Coverage, any time deductible 

shown in the Declarations for Equipment 

Breakdown Protection Coverage supersedes any time deductible otherwise applicable to the Business Income coverage 

provided by this policy. 

g. With respect to the coverage provided by 

this Optional Coverage, Paragraph H. 

Property Definitions is amended as follows: 

1. "Computer" means: 

a. Programmable electronic equipment 

that is used to store, retrieve and 

process data; and 

b. Associated peripheral equipment 

that provides communication, including input and output functions such 

as printing and auxiliary functions 

such as data transmission. 

"Computer" includes those used to operate 

production type machinery or equipment. 

h. Whenever any covered pressure, mechanical or electrical machinery and equipment is 

found to be in, or exposed to, a dangerous 

condition, any of our representatives may 

suspend coverage provided by this Optional 

Coverage for loss from a mechanical 

breakdown or electrical failure to that pressure, mechanical or electrical machinery 

and equipment. 

However, coverage provided by this Optional Coverage may be reinstated for loss 

from a mechanical breakdown or electrical 

failure to that pressure, mechanical or electrical machinery and equipment if the reasons for the suspension are found by any of 

our representatives to no longer exist. 

We may suspend or reinstate this Optional 

coverage by mailing or delivering a written 

notification regarding the suspension or reinstatement to: 

 (1) Your last known address; or 

(2) The address where the pressure, mechanical or electrical machinery and 

equipment is located. 

This notification will indicate the effective 

date of the suspension or reinstatement. 

If the coverage provided by this Optional 

Coverage is not reinstated, 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. 

H. Property Definitions 

 1. "Computer" means: 

 a. Programmable electronic equipment that is 

used to store, retrieve and process data; 

and 

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

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

"Computer" does not include those used to operate production type machinery or equipment. 

 2. "Counterfeit money" means an imitation of 

"money" that is intended to deceive and to be 

taken as genuine. 

 3. "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. 

 4. "Fungi" means any type or form of fungus, 

including mold or mildew, and any mycotoxins, 

spores, scents or by-products produced or released by fungi. 

 5. "Manager" means a person serving in a directorial capacity for a limited liability company. 

6. "Member" means an owner of a limited liability 

company represented by its membership interest, who also may serve as a "manager". 
Page 30 of 49 © Insurance Services Office, Inc., 2009 BP 00 03 01 10

 7. "Money" means: 

 a. Currency, coins and bank notes in current 

use and having a face value; and 

 b. Travelers checks, register checks and 

money orders held for sale to the public. 

 8. "Operations" means your business activities 

occurring at the described premises. 

9. "Period of restoration": 

 a. Means the period of time that: 

 (1) Begins: 

 (a) 72 hours after the time of direct 

physical loss or damage for Business Income Coverage; or 

 (b) 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 

 (2) Ends on the earlier of: 

 (a) The date when the property at the 

described premises should be repaired, rebuilt or replaced with reasonable speed and similar quality; or 

 (b) The date when business is resumed 

at a new permanent location. 

 b. Does not include any increased period 

required due to the enforcement of 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". 

 10. "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. 

 11. "Securities" means negotiable and nonnegotiable instruments or contracts representing either "money" or other property and includes: 

 a. Tokens, tickets, revenue and other stamps 

(whether represented by actual stamps or 

unused value in a meter) in current use; 

and 

 b. Evidences of debt issued in connection with 

credit or charge cards, which cards are not 

issued by you; 

but does not include "money". 

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

Fire; lightning; explosion; windstorm or hail; 

smoke; aircraft or vehicles; riot or civil commotion; vandalism; leakage from fire extinguishing 

equipment; sinkhole collapse; volcanic action; 

falling objects; weight of snow, ice or sleet; water damage. 

a. Sinkhole collapse means the sudden sinking or collapse of land into underground 

empty spaces created by the action of water on limestone or dolomite. This cause of 

loss does not include: 

 (1) The cost of filling sinkholes; or 

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

 b. Falling objects does not include loss of 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 accidental discharge 

or leakage of water or steam as the direct 

result of the breaking apart or cracking of 

any part of a system or appliance (other 

than a sump system including its related 

equipment and parts) containing water or 

steam. 

 13. "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. 

 14. "Valuable papers and records" means inscribed, printed or written: 

 a. Documents; 

 b. Manuscripts; and 

 c. Records; 

including abstracts, books, deeds, drawings, films, maps or mortgages. 

But "valuable papers and records" does not 

mean "money" or "securities". 
BP 00 03 01 10 © Insurance Services Office, Inc., 2009 Page 31 of 49

SECTION II – LIABILITY 

A. Coverages 

 1. Business Liability 

 a. We will pay those sums that the insured 

becomes legally obligated to pay as damages because of "bodily injury", "property 

damage" or "personal and advertising injury" to which this insurance applies. We 

will have the right and duty to defend the 

insured against any "suit" seeking those 

damages. However, we will have no duty to 

defend the insured against any "suit" seeking damages for "bodily injury", "property 

damage" or "personal and advertising injury" to which this insurance does not apply. 

We may, at our discretion, investigate any 

"occurrence" or any offense and settle any 

claim or "suit" that may result. But: 

(1) The amount we will pay for damages is 

limited as described in Paragraph D. – 

Liability And Medical Expenses Limits 

Of Insurance in Section – Liability; and 

 (2) Our right and duty to defend end when 

we have used up the applicable Limit of 

Insurance in the payment of judgments 

or settlements or medical expenses. 

No other obligation or liability to pay sums 

or perform acts or services is covered 

unless explicitly provided for under Paragraph Coverage Extension – Supplementary Payments. 

b. This insurance applies: 

 (1) To "bodily injury" and "property damage" 

only if: 

 (a) The "bodily injury" or "property damage" is caused by an "occurrence" 

that takes place in the "coverage territory"; 

 (b) The "bodily injury" or "property damage" occurs during the policy period; 

and 

(c) Prior to the policy period, no insured 

listed under Paragraph C.1. Who Is 

An Insured and no "employee" authorized by you to give or receive notice of an "occurrence" or claim, 

knew that the "bodily injury" or "property damage" had occurred, in whole 

or in part. If such a listed insured or 

authorized "employee" knew, prior to 

the policy period, that the "bodily injury" or "property damage" occurred, 

then any continuation, change or resumption of such "bodily injury" or 

"property damage" during or after the 

policy period will be deemed to have 

been known before the policy period. 

 (2) To "personal and advertising injury" 

caused by an offense arising out of your 

business, but only if the offense was 

committed in the "coverage territory" 

during the policy period. 

 c. "Bodily injury" or "property damage" which 

occurs during the policy period and was 

not, prior to the policy period, known to 

have occurred by any insured listed under 

Paragraph C.1. Who Is An Insured or any 

"employee" authorized by you to give or receive notice of an "occurrence" or claim, includes any continuation, change or resumption of "bodily injury" or "property damage" 

after the end of the policy period. 

d. "Bodily injury" or "property damage" will be 

deemed to have been known to have occurred at the earliest time when any insured 

listed under Paragraph C.1. Who Is An Insured or any "employee" authorized by you 

to give or receive notice of an "occurrence" 

or claim: 

 (1) Reports all, or any part, of the "bodily 

injury" or "property damage" to us or any 

other insurer; 

(2) Receives a written or verbal demand or 

claim for damages because of the "bodily injury" or "property damage"; or 

(3) Becomes aware by any other means 

that "bodily injury" or "property damage" 

has occurred or has begun to occur. 
Page 32 of 49 © Insurance Services Office, Inc., 2009 BP 00 03 01 10

 e. Damages because of "bodily injury" include 

damages claimed by any person or organization for care, loss of services or death resulting at any time from the "bodily injury". 

 f. Coverage Extension – Supplementary 

Payments 

 (1) We will pay, with respect to any claim 

we investigate or settle, or any "suit" 

against an insured we defend: 

 (a) All expenses we incur. 

 (b) Up to $250 for cost of bail bonds 

required because of accidents or 

traffic law violations arising out of the 

use of any vehicle to which Business 

Liability Coverage for "bodily injury" 

applies. We do not have to furnish 

these bonds. 

 (c) The cost of bonds to release attachments, but only for bond amounts 

within our Limit of Insurance. We do 

not have to furnish these bonds. 

 (d) All reasonable expenses incurred by 

the insured at our request to assist 

us in the investigation or defense of 

the claim or "suit", including actual 

loss of earnings up to $250 a day 

because of time off from work. 

 (e) All court costs taxed against the insured in the "suit". However, these 

payments do not include attorneys' 

fees or attorneys' expenses taxed 

against the insured. 

 (f) Prejudgment interest awarded 

against the insured on that part of 

the judgment we pay. If we make an 

offer to pay the Limit of Insurance, 

we will not pay any prejudgment interest based on that period of time 

after the offer. 

 (g) All interest on the full amount of any 

judgment that accrues after entry of 

the judgment and before we have 

paid, offered to pay, or deposited in 

court the part of the judgment that is 

within our Limit of Insurance. 

These payments will not reduce the limit 

of liability. 

 (2) If we defend an insured against a "suit" 

and an indemnitee of the insured is also 

named as a party to the "suit", we will 

defend that indemnitee if all of the following conditions are met: 

 (a) The "suit" against the indemnitee 

seeks damages for which the insured has assumed the liability of the 

indemnitee in a contract or agreement that is an "insured contract"; 

 (b) This insurance applies to such liability assumed by the insured; 

 (c) The obligation to defend, or the cost 

of the defense of, that indemnitee, 

has also been assumed by the insured in the same "insured contract"; 

 (d) The allegations in the "suit" and the 

information we know about the "occurrence" are such that no conflict 

appears to exist between the interests of the insured and the interests 

of the indemnitee; 

 (e) The indemnitee and the insured ask 

us to conduct and control the defense of that indemnitee against 

such "suit" and agree that we can 

assign the same counsel to defend 

the insured and the indemnitee; and 

 (f) The indemnitee: 

 (i) Agrees in writing to: 

 i. Cooperate with us in the investigation, settlement or defense of the "suit"; 

 ii. Immediately send us copies of 

any demands, notices, summonses or legal papers received in connection with the 

"suit"; 

 iii. Notify any other insurer 

whose coverage is available 

to the indemnitee; and 

 iv. Cooperate with us with respect to coordinating other 

applicable insurance available 

to the indemnitee; and 

 (ii) Provides us with written authorization to: 

 i. Obtain records and other 

information related to the 

"suit"; and 

 ii. Conduct and control the defense of the indemnitee in 

such "suit". 
BP 00 03 01 10 © Insurance Services Office, Inc., 2009 Page 33 of 49

 (3) So long as the conditions in Paragraph 

(2) are met, attorneys' fees incurred by 

us in the defense of that indemnitee, 

necessary litigation expenses incurred 

by us and necessary litigation expenses 

incurred by the indemnitee at our request will be paid as Supplementary 

Payments. Notwithstanding the provisions of Paragraph B.1.b.(2) Exclusions 

in Section – Liability, such payments 

will not be deemed to be damages for 

"bodily injury" and "property damage" 

and will not reduce the Limits of Insurance. 

Our obligation to defend an insured's indemnitee and to pay for attorneys' fees 

and necessary litigation expenses as 

Supplementary Payments ends when: 

 (a) We have used up the applicable 

Limit of Insurance in the payment of 

judgments or settlements; or 

 (b) The conditions set forth above, or 

the terms of the agreement described in Paragraph (2)(f) above are 

no longer met. 

2. Medical Expenses 

 a. We will pay medical expenses as described 

below for "bodily injury" caused by an accident: 

 (1) On premises you own or rent; 

 (2) On ways next to premises you own or 

rent; or 

 (3) Because of your operations; 

provided that: 

 (a) The accident takes place in the 

"coverage territory" and during the 

policy period; 

 (b) The expenses are incurred and reported to us within one year of the 

date of the accident; and 

 (c) The injured person submits to examination, at our expense, by physicians of our choice as often as we 

reasonably require. 

 b. We will make these payments regardless of 

fault. These payments will not exceed the 

Limits of Insurance of Section – Liability. 

We will pay reasonable expenses for: 

 (1) First aid administered at the time of an 

accident; 

 (2) Necessary medical, surgical, x-ray and 

dental services, including prosthetic devices; and 

 (3) Necessary ambulance, hospital, professional nursing and funeral services. 

B. Exclusions 

 1. Applicable To Business Liability Coverage 

This insurance does not apply to: 

 a. Expected Or Intended Injury 

"Bodily injury" or "property damage" expected or intended from the standpoint of 

the insured. This exclusion does not apply 

to "bodily injury" resulting from the use of 

reasonable force to protect persons or 

property. 

 b. Contractual Liability 

"Bodily injury" or "property damage" for 

which the insured is obligated to pay damages by reason of the assumption of liability 

in a contract or agreement. This exclusion 

does not apply to liability for damages: 

(1) That the insured would have in the absence of the contract or agreement; or 

 (2) Assumed in a contract or agreement 

that is an "insured contract", provided 

the "bodily injury" or "property damage" 

occurs subsequent to the execution of 

the contract or agreement. Solely for the 

purposes of liability assumed in an "insured contract", reasonable attorney 

fees and necessary litigation expenses 

incurred by or for a party other than an 

insured are deemed to be damages because of "bodily injury" or "property 

damage", provided: 

 (a) Liability to such party for, or for the 

cost of, that party's defense has also 

been assumed in the same "insured 

contract"; and 

 (b) Such attorney fees and litigation 

expenses are for defense of that 

party against a civil or alternative 

dispute resolution proceeding in 

which damages to which this insurance applies are alleged. 

 c. Liquor Liability 

"Bodily injury" or "property damage" for 

which any insured may be held liable by 

reason of: 

 (1) Causing or contributing to the intoxication of any person; 

 (2) The furnishing of alcoholic beverages to 

a person under the legal drinking age or 

under the influence of alcohol; or 
Page 34 of 49 © Insurance Services Office, Inc., 2009 BP 00 03 01 10

 (3) Any statute, ordinance or regulation 

relating to the sale, gift, distribution or 

use of alcoholic beverages. 

This exclusion applies only if you are in the 

business of manufacturing, distributing, selling, serving or furnishing alcoholic beverages. 

 d. Workers' Compensation And Similar 

Laws 

Any obligation of the insured under a workers' compensation, disability benefits or unemployment compensation law or any similar law. 

 e. Employer's Liability 

"Bodily injury" to: 

 (1) An "employee" of the insured arising out 

of and in the course of: 

 (a) Employment by the insured; or 

 (b) Performing duties related to the 

conduct of the insured's business; or 

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

sister of that "employee" as a consequence of Paragraph (1) above. 

This exclusion applies: 

 (1) Whether the insured may be liable as an 

employer or in any other capacity; and 

 (2) To any obligation to share damages with 

or repay someone else who must pay 

damages because of the injury. 

This exclusion does not apply to liability assumed by the insured under an "insured 

contract". 

 f. Pollution 

 (1) "Bodily injury" or "property damage" 

arising out of the actual, alleged or 

threatened discharge, dispersal, seepage, migration, release or escape of 

"pollutants": 

 (a) At or from any premises, site or 

location which is or was at any time 

owned or occupied by, or rented or 

loaned to, any insured. However, this 

subparagraph does not apply to: 

 (i) "Bodily injury" if sustained within 

a building and caused by smoke, 

fumes, vapor or soot produced by 

or originating from equipment that 

is used to heat, cool or dehumidify the building, or equipment that 

is used to heat water for personal 

use, by the building's occupants 

or their guests; 

(ii) "Bodily injury" or "property damage" for which you may be held 

liable, if you are a contractor and 

the owner or lessee of such 

premises, site or location has 

been added to your policy as an 

additional insured with respect to 

your ongoing operations performed for that additional insured 

at that premises, site or location 

and such premises, site or location is not and never was owned 

or occupied by, or rented or 

loaned to, any insured, other than 

that additional insured; or 

(iii) "Bodily injury" or "property damage" arising out of heat, smoke or 

fumes from a "hostile fire"; 
BP 00 03 01 10 © Insurance Services Office, Inc., 2009 Page 35 of 49

 (b) At or from any premises, site or 

location which is or was at any time 

used by or for any insured or others 

for the handling, storage, disposal, 

processing or treatment of waste; 

 (c) Which are or were at any time transported, handled, stored, treated, disposed of, or processed as waste by 

or for: 

 (i) Any insured; or 

(ii) Any person or organization for 

whom you may be legally responsible; or 

 (d) At or from any premises, site or 

location on which any insured or any 

contractors or subcontractors working directly or indirectly on any insured's behalf are performing operations if the "pollutants" are brought 

on or to the premises, site or location 

in connection with such operations 

by such insured, contractor or subcontractor. However, this subparagraph does not apply to: 

 (i) "Bodily injury" or "property damage" arising out of the escape of 

fuels, lubricants or other operating fluids which are needed to 

perform the normal electrical, hydraulic or mechanical functions 

necessary for the operation of 

"mobile equipment" or its parts, if 

such fuels, lubricants or other 

operating fluids escape from a 

vehicle part designed to hold, 

store or receive them. This exception does not apply if the 

"bodily injury" or "property damage" arises out of the intentional 

discharge, dispersal or release of 

the fuels, lubricants or other operating fluids, or if such fuels, lubricants or other operating fluids 

are brought on or to the premises, site or location with the intent that they be discharged, dispersed or released as part of the 

operations being performed by 

such insured, contractor or subcontractor; 

(ii) "Bodily injury" or "property damage" sustained within a building 

and caused by the release of 

gases, fumes or vapors from materials brought into that building in 

connection with operations being 

performed by you or on your behalf by a contractor or subcontractor; or 

(iii) "Bodily injury" or "property damage" arising out of heat, smoke or 

fumes from a "hostile fire". 

 (e) At or from any premises, site or 

location on which any insured or any 

contractors or subcontractors working directly or indirectly on any insured's behalf are performing operations if the operations are to test for, 

monitor, clean up, remove, contain, 

treat, detoxify or neutralize, or in any 

way respond to, or assess the effects of, "pollutants". 

 (2) Any loss, cost or expense arising out of 

any: 

 (a) Request, demand, order or statutory 

or regulatory requirement that any 

insured or others test for, monitor, 

clean up, remove, contain, treat, detoxify or neutralize, or in any way respond to, or assess the effects of, 

"pollutants"; or 

(b) Claim or "suit" by or on behalf of a 

governmental authority for damages 

because of testing for, monitoring, 

cleaning up, removing, containing, 

treating, detoxifying or neutralizing, 

or in any way responding to, or assessing the effects of, "pollutants". 

However, this paragraph does not apply 

to liability for damages because of 

"property damage" that the insured 

would have in the absence of such request, demand, order or statutory or 

regulatory requirement or such claim or 

"suit" by or on behalf of a governmental 

authority. 

g. Aircraft, Auto Or Watercraft 

"Bodily injury" or "property damage" arising 

out of the ownership, maintenance, use or 

entrustment to others of any aircraft, "auto" 

or watercraft owned or operated by or 

rented or loaned to any insured. Use includes operation and "loading or unloading". 
Page 36 of 49 © Insurance Services Office, Inc., 2009 BP 00 03 01 10

This exclusion applies even if the claims allege negligence or other wrongdoing in the 

supervision, hiring, employment, training or 

monitoring of others by an insured, if the 

"occurrence" which caused the "bodily injury" or "property damage" involved the 

ownership, maintenance, use or entrustment to others of any aircraft, "auto" or watercraft that is owned or operated by or 

rented or loaned to any insured. 

This exclusion does not apply to: 

 (1) A watercraft while ashore on premises 

you own or rent; 

 (2) A watercraft you do not own that is: 

 (a) Less than 51 feet long; and 

 (b) Not being used to carry persons or 

property for a charge; 

 (3) Parking an "auto" on, or on the ways 

next to, premises you own or rent, provided the "auto" is not owned by or 

rented or loaned to you or the insured; 

 (4) Liability assumed under any "insured 

contract" for the ownership, maintenance or use of aircraft or watercraft; or 

 (5) "Bodily injury" or "property damage" 

arising out of: 

(a) The operation of machinery or 

equipment that is attached to, or part 

of, a land vehicle that would qualify 

under the definition of "mobile 

equipment" if it were not subject to a 

compulsory or financial responsibility 

law or other motor vehicle insurance 

or motor vehicle registration law 

where it is licensed or principally garaged; or 

(b) The operation of any of the following 

machinery or equipment: 

 (i) Cherry pickers and similar devices mounted on automobile or 

truck chassis and used to raise or 

lower workers; and

 (ii) Air compressors, pumps and 

generators, including spraying, 

welding, building cleaning, geophysical exploration, lighting and 

well servicing equipment.

h. Mobile Equipment 

"Bodily injury" or "property damage" arising 

out of: 

 (1) The transportation of "mobile equipment" by an "auto" owned or operated 

by or rented or loaned to any insured; or 

 (2) The use of "mobile equipment" in, or 

while in practice for, or while being prepared for, any prearranged racing, 

speed, demolition or stunting activity. 

 i. War 

"Bodily injury", "property damage" or "personal and advertising injury", however 

caused, arising, directly or indirectly, out of: 

 (1) War, including undeclared 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 government authority in hindering or defending against any of these. 

 j. Professional Services 

"Bodily injury", "property damage" or "personal and advertising injury" caused by the 

rendering or failure to render any professional service. This includes but is not limited to: 

 (1) Legal, accounting or advertising services; 

 (2) Preparing, approving, or failing to prepare or approve maps, drawings, opinions, reports, surveys, change orders, 

designs or specifications; 

 (3) Supervisory, inspection or engineering 

services; 

 (4) Medical, surgical, dental, x-ray or nursing services treatment, advice or instruction; 

 (5) Any health or therapeutic service treatment, advice or instruction; 

 (6) Any service, treatment, advice or instruction for the purpose of appearance 

or skin enhancement, hair removal or 

replacement or personal grooming; 

 (7) Optometry or optical or hearing aid services including the prescribing, 

preparation, fitting, demonstration or distribution of ophthalmic lenses and similar products or hearing aid devices; 

(8) Body piercing services; and 

 (9) Services in the practice of pharmacy. 
BP 00 03 01 10 © Insurance Services Office, Inc., 2009 Page 37 of 49

This exclusion applies even if the claims allege negligence or other wrongdoing in the 

supervision, hiring, employment, training or 

monitoring of others by an insured, if the 

"occurrence" which caused the "bodily injury" or "property damage", or the offense 

which caused the "personal and advertising 

injury", involved the rendering or failure to 

render of any professional service. 

k. Damage To Property 

"Property damage" to: 

 (1) Property you own, rent or occupy, including any costs or expenses incurred 

by you, or any other person, organization or entity, for repair, replacement, 

enhancement, restoration or maintenance of such property for any reason, 

including prevention of injury to a person 

or damage to another's property; 

 (2) Premises you sell, give away or abandon, if the "property damage" arises out 

of any part of those premises; 

 (3) Property loaned to you; 

 (4) Personal property in the care, custody 

or control of the insured; 

 (5) That particular part of real property on 

which you or any contractor or subcontractor working directly or indirectly on 

your behalf is performing operations, if 

the "property damage" arises out of 

those operations; or 

 (6) That particular part of any property that 

must be restored, repaired or replaced 

because "your work" was incorrectly 

performed on it. 

Paragraphs (1), (3) and (4) of this exclusion 

do not apply to "property damage" (other 

than damage by fire) to premises, including 

the contents of such premises, rented to 

you for a period of seven or fewer consecutive days. A separate Limit of Insurance applies to Damage To Premises Rented To 

You as described in Paragraph D. Liability 

And Medical Expenses Limit Of Insurance 

in Section – Liability. 

Paragraph (2) of this exclusion does not 

apply if the premises are "your work" and 

were never occupied, rented or held for 

rental by you. 

Paragraphs (3), (4), (5) and (6) of this exclusion do not apply to liability assumed 

under a sidetrack agreement. 

Paragraph (6) of this exclusion does not 

apply to "property damage" included in the 

"products-completed operations hazard". 

 l. Damage To Your Product 

"Property damage" to "your product" arising 

out of it or any part of it. 

 m. Damage To Your Work 

"Property damage" to "your work" arising 

out of it or any part of it and included in the 

"products-completed operations hazard". 

This exclusion does not apply if the damaged work or the work out of which the 

damage arises was performed on your behalf by a subcontractor. 

 n. Damage To Impaired Property Or 

Property Not Physically Injured 

"Property damage" to "impaired property" or 

property that has not been physically injured, arising out of: 

 (1) A defect, deficiency, inadequacy or 

dangerous condition in "your product" or 

"your work"; or 

 (2) A delay or failure by you or anyone 

acting on your behalf to perform a contract or agreement in accordance with 

its terms. 

This exclusion does not apply to the loss of 

use of other property arising out of sudden 

and accidental physical injury to "your product" or "your work" after it has been put to 

its intended use. 

 o. Recall Of Products, Work Or Impaired 

Property 

Damages claimed for any loss, cost or expense incurred by you or others for the loss 

of use, withdrawal, recall, inspection, repair, 

replacement, adjustment, removal or disposal of: 

 (1) "Your product"; 

 (2) "Your work"; or 

 (3) "Impaired property"; 

if such product, work or property is withdrawn or recalled from the market or from 

use by any person or organization because 

of a known or suspected defect, deficiency, 

inadequacy or dangerous condition in it. 

 p. Personal And Advertising Injury 

"Personal and advertising injury": 

 (1) Caused by or at the direction of the 

insured with the knowledge that the act 

would violate the rights of another and 

would inflict "personal and advertising 

injury"; 
Page 38 of 49 © Insurance Services Office, Inc., 2009 BP 00 03 01 10

 (2) Arising out of oral or written publication 

of material, if done by or at the direction 

of the insured with knowledge of its falsity; 

 (3) Arising out of oral or written publication 

of material whose first publication took 

place before the beginning of the policy 

period; 

 (4) For which the insured has assumed 

liability in a contract or agreement. This 

exclusion does not apply to liability for 

damages that the insured would have in 

the absence of the contract or agreement; 

(5) Arising out of a breach of contract, except an implied contract to use another's 

advertising idea in your "advertisement"; 

(6) Arising out of the failure of goods, products or services to conform with any 

statement of quality or performance 

made in your "advertisement"; 

(7) Arising out of the wrong description of 

the price of goods, products or services 

stated in your "advertisement"; 

(8) Committed by an insured whose business is: 

 (a) Advertising, broadcasting, publishing 

or telecasting;

 (b) Designing or determining content of 

websites for others; or 

(c) An Internet search, access, content 

or service provider. 

However, this exclusion does not apply 

to Paragraphs 14.a., b. and c. of "personal and advertising injury" under 

Paragraph F. Liability And Medical Expenses Definitions. 

For the purposes of this exclusion, the 

placing of frames, borders or links, or 

advertising, for you or others anywhere 

on the Internet, by itself, is not considered the business of advertising, broadcasting, publishing or telecasting. 

 (9) Arising out of the actual, alleged or 

threatened discharge, dispersal, seepage, migration, release or escape of 

"pollutants" at any time; 

 (10) With respect to any loss, cost or expense arising out of any: 

 (a) Request, demand or order that any 

insured or others test for, monitor, 

clean-up, remove, contain, treat, detoxify or neutralize or in any way respond to, or assess the effects of, 

"pollutants"; or 

 (b) Claim or "suit" by or on behalf of a 

governmental authority for damages 

because of testing for, monitoring, 

cleaning up, removing, containing, 

treating, detoxifying or neutralizing or 

in any way responding to, or assessing the effects of, "pollutants". 

(11) Arising out of an electronic chatroom or 

bulletin board the insured hosts, owns or 

over which the insured exercises control; 

(12) Arising out of the infringement of copyright, patent, trademark, trade secret or 

other intellectual property rights. Under 

this exclusion, such other intellectual 

property rights do not include the use of 

another's advertising idea in your "advertisement". 

However, this exclusion does not apply 

to infringement, in your "advertisement", 

of copyright, trade dress or slogan. 

 (13) Arising out of the unauthorized use of 

another's name or product in your e-mail 

address, domain name or metatags, or 

any other similar tactics to mislead another's potential customers.

 q. Electronic Data 

Damages arising out of the loss of, loss of 

use of, damage to, corruption of, inability to 

access, or inability to manipulate electronic 

data. 

As used in this exclusion, electronic data 

means information, facts or computer programs stored as or on, created or used on, 

or transmitted to or from computer software 

(including systems and applications software), on hard or floppy disks, CD-ROMs, 

tapes, drives, cells, data processing devices or any other repositories of computer 

software which are used with electronically 

controlled equipment. The term computer 

programs, referred to in the foregoing description of electronic data, means a set of 

related electronic instructions which direct 

the operations and functions of a computer 

or device connected to it, which enable the 

computer or device to receive, process, 

store, retrieve or send data. 
BP 00 03 01 10 © Insurance Services Office, Inc., 2009 Page 39 of 49

 r. Criminal Acts 

"Personal and advertising injury" arising out 

of a criminal act committed by or at the direction of the insured. 

 s. Recording And Distribution Of Material 

Or Information In Violation Of Law 

"Bodily injury", "property damage", or "personal and advertising injury" arising directly 

or indirectly out of any action or omission 

that violates or is alleged to violate: 

 (1) The Telephone Consumer Protection 

Act (TCPA), including any amendment 

of or addition to such law; 

 (2) The CAN-SPAM Act of 2003, including 

any amendment of or addition to such 

law; 

 (3) The Fair Credit Reporting Act (FCRA), 

and any amendment of or addition to 

such law, including the Fair and Accurate Credit Transaction Act (FACTA); or

 (4) Any federal, state or local statute, ordinance or regulation, other than the 

TCPA, CAN-SPAM Act of 2003 or 

FCRA and their amendments and additions, that addresses, prohibits, or limits 

the printing, dissemination, disposal, 

collecting, recording, sending, transmitting, communicating or distribution of 

material or information.

Exclusions c., d., e., f., g., h., i., k., l., m., n.

and o. in Section – Liability do not apply to 

damage by fire to premises while rented to 

you, or temporarily occupied by you with permission of the owner. A separate Damage To 

Premises Rented To You Limit of Insurance 

applies to this coverage as described in Paragraph D. Liability And Medical Expenses Limits 

of Insurance in Section – Liability. 

 2. Applicable To Medical Expenses Coverage 

We will not pay expenses for "bodily injury": 

 a. To any insured, except "volunteer workers". 

 b. To a person hired to do work for or on behalf of any insured or a tenant of any insured. 

 c. To a person injured on that part of premises 

you own or rent that the person normally 

occupies. 

 d. To a person, whether or not an "employee" 

of any insured, if benefits for the "bodily injury" are payable or must be provided under 

a workers' compensation or disability benefits law or a similar law. 

 e. To a person injured while practicing, instructing or participating in any physical exercises or games, sports or athletic contests. 

 f. Included within the "products-completed 

operations hazard". 

 g. Excluded under Business Liability Coverage. 

3. Applicable To Both Business Liability 

Coverage And Medical Expenses Coverage 

– Nuclear Energy Liability Exclusion 

This insurance does not apply: 

 a. Under Business Liability Coverage, to "bodily injury" or "property damage": 

 (1) With respect to which an insured under 

the policy is also an insured under a nuclear energy liability policy issued by the 

Nuclear Energy Liability Insurance Association, Mutual Atomic Energy Liability 

Underwriters or Nuclear Insurance Association of Canada, or would be an insured under any such policy but for its 

termination upon exhaustion of its limit 

of liability; or 

(2) Resulting from the "hazardous properties" of "nuclear material" and with respect to which: 

 (a) Any person or organization is required to maintain financial protection pursuant to the Atomic Energy 

Act of 1954, or any law amendatory 

thereof; or 

 (b) The insured is, or had this policy not 

been issued would be, entitled to indemnity from the United States of 

America, or any agency thereof, under any agreement entered into by 

the United States of America, or any 

agency thereof, with any person or 

organization. 

 b. Under Medical Expenses Coverage, to 

expenses incurred with respect to "bodily 

injury" resulting from the "hazardous properties" of "nuclear material" and arising out 

of the operation of a "nuclear facility" by any 

person or organization. 

 c. Under Business Liability Coverage, to "bodily injury" or "property damage" resulting 

from the "hazardous properties" of the "nuclear material"; if: 

 (1) The "nuclear material": 

 (a) Is at any "nuclear facility" owned by, 

or operated by or on behalf of, an insured; or 
Page 40 of 49 © Insurance Services Office, Inc., 2009 BP 00 03 01 10

 (b) Has been discharged or dispersed 

therefrom; 

 (2) The "nuclear material" is contained in 

"spent fuel" or "waste" at any time possessed, handled, used, processed, 

stored, transported or disposed of by or 

on behalf of an insured; or 

 (3) The "bodily injury" or "property damage" 

arises out of the furnishing by an insured of services, materials, parts or 

equipment in connection with the planning, construction, maintenance, operation or use of any "nuclear facility"; but if 

such facility is located within the United 

States of America, its territories or possessions or Canada, this Exclusion (3)

applies only to "property damage" to 

such "nuclear facility" and any property 

thereat. 

 d. As used in this exclusion: 

 (1) "By-product material" has the meaning 

given it in the Atomic Energy Act of 

1954 or in any law amendatory thereof; 

 (2) "Hazardous properties" include radioactive, toxic or explosive properties; 

 (3) "Nuclear facility" means: 

 (a) Any "nuclear reactor"; 

 (b) Any equipment or device designed 

or used for: 

 (i) Separating the isotopes of uranium or plutonium; 

 (ii) Processing or utilizing "spent 

fuel"; or 

 (iii) Handling, processing or packaging "waste"; 

 (c) Any equipment or device used for 

the processing, fabricating or alloying of "special nuclear material" if at 

any time the total amount of such 

material in the custody of the insured 

at the premises where such equipment or device is located consists of 

or contains more than 25 grams of 

plutonium or uranium 233 or any 

combination thereof, or more than 

250 grams of uranium 235; 

 (d) Any structure, basin, excavation, 

premises or place prepared or used 

for the storage or disposal of 

"waste"; 

and includes the site on which any of the 

foregoing is located, all operations conducted on such site and all premises 

used for such operations; 

 (4) "Nuclear material" means "source material", "special nuclear material" or "byproduct material"; 

 (5) "Nuclear reactor" means any apparatus 

designed or used to sustain nuclear fission in a self-supporting chain reaction 

or to contain a critical mass of fissionable material; 

 (6) "Property damage" includes all forms of 

radioactive contamination of property; 

 (7) "Source material" has the meaning 

given it in the Atomic Energy Act of 

1954 or in any law amendatory thereof; 

 (8) "Special nuclear material" has the 

meaning given it in the Atomic Energy 

Act of 1954 or in any law amendatory 

thereof; 

 (9) "Spent fuel" means any fuel element or 

fuel component, solid or liquid, which 

has been used or exposed to radiation 

in a "nuclear reactor"; 

 (10) "Waste" means any waste material: 

 (a) Containing "by-product material" 

other than the tailings or wastes produced by the extraction or concentration of uranium or thorium from 

any ore processed primarily for its 

"source material" content; and 

 (b) Resulting from the operation by any 

person or organization of any "nuclear facility" included under Paragraphs (a) and (b) of the definition of 

"nuclear facility". 

C. Who Is An Insured 

 1. If you are designated in the Declarations as: 

 a. An individual, you and your spouse are 

insureds, but only with respect to the conduct of a business of which you are the sole 

owner. 

 b. A partnership or joint venture, you are an 

insured. Your members, your partners and 

their spouses are also insureds, but only 

with respect to the conduct of your business. 

 c. A limited liability company, you are an insured. Your members are also insureds, but 

only with respect to the conduct of your 

business. Your managers are insureds, but 

only with respect to their duties as your 

managers. 
BP 00 03 01 10 © Insurance Services Office, Inc., 2009 Page 41 of 49

 d. An organization other than a partnership, 

joint venture or limited liability company, 

you are an insured. Your "executive officers" and directors are insureds, but only 

with respect to their duties as your officers 

or directors. Your stockholders are also insureds, but only with respect to their liability 

as stockholders. 

 e. A trust, you are an insured. Your trustees 

are also insureds, but only with respect to 

their duties as trustees. 

2. Each of the following is also an insured: 

 a. Your "volunteer workers" only while performing duties related to the conduct of 

your business, or your "employees", other 

than either your "executive officers" (if you 

are an organization other than a partnership, joint venture or limited liability company) or your managers (if you are a limited 

liability company), but only for acts within 

the scope of their employment by you or 

while performing duties related to the conduct of your business. However, none of 

these "employees" or "volunteer workers" 

are insureds for: 

 (1) "Bodily injury" or "personal and advertising injury": 

(a) To you, to your partners or members 

(if you are a partnership or joint venture), to your members (if you are a 

limited liability company), or to a co-

"employee" while in the course of his 

or her employment or performing duties related to the conduct of your 

business, or to your other "volunteer 

workers" while performing duties related to the conduct of your business; 

 (b) To the spouse, child, parent, brother 

or sister of that co-"employee" as a 

consequence of Paragraph (a)

above; 

 (c) For which there is any obligation to 

share damages with or repay someone else who must pay damages 

because of the injury described in 

Paragraph (a) or (b); or 

 (d) Arising out of his or her providing or 

failing to provide professional health 

care services. 

 (2) "Property damage" to property: 

 (a) Owned, occupied or used by, 

 (b) Rented to, in the care, custody or 

control of, or over which physical 

control is being exercised for any 

purpose by 

you, any of your "employees", "volunteer 

workers", any partner or member (if you 

are a partnership or joint venture), or 

any member (if you are a limited liability 

company). 

 b. Any person (other than your "employee" or 

"volunteer worker"), or any organization 

while acting as your real estate manager. 

 c. Any person or organization having proper 

temporary custody of your property if you 

die, but only: 

 (1) With respect to liability arising out of the 

maintenance or use of that property; 

and 

 (2) Until your legal representative has been 

appointed. 

d. Your legal representative if you die, but only 

with respect to duties as such. That representative will have all your rights and duties 

under this policy. 

No person or organization is an insured with respect to the conduct of any current or past partnership, joint venture or limited liability company

that is not shown as a Named Insured in the Declarations. 

D. Liability And Medical Expenses Limits Of 

Insurance 

 1. The Limits of Insurance of Section – Liability 

shown in the Declarations and the rules below 

fix the most we will pay regardless of the number of: 

 a. Insureds; 

 b. Claims made or "suits" brought; or 

 c. Persons or organizations making claims or 

bringing "suits". 

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

 a. "Bodily injury", "property damage" and 

medical expenses arising out of any one 

"occurrence"; and 

 b. "Personal and advertising injury" sustained 

by any one person or organization; 

is the Liability and Medical Expenses limit 

shown in the Declarations. But the most we will 

pay for all medical expenses because of "bodily injury" sustained by any one person is the 

Medical Expenses limit shown in the Declarations. 
Page 42 of 49 © Insurance Services Office, Inc., 2009 BP 00 03 01 10

3. The most we will pay under Business Liability 

Coverage for damages because of "property 

damage" to a premises while rented to you or 

in the case of fire while rented to you or temporarily occupied by you with permission of the 

owner is the applicable Damage To Premises 

Rented To You limit shown for that premises in 

the Declarations. For a premises temporarily 

occupied by you, the applicable limit will be the 

highest Damage To Premises Rented To You 

limit shown in the Declarations. 

 4. Aggregate Limits 

The most we will pay for: 

 a. All "bodily injury" and "property damage" 

that is included in the "products-completed 

operations hazard" is twice the Liability and 

Medical Expenses limit. 

 b. All: 

 (1) "Bodily injury" and "property damage" 

except damages because of "bodily injury" or "property damage" included in 

the "products-completed operations 

hazard"; 

(2) Plus medical expenses; 

(3) Plus all "personal and advertising injury" 

caused by offenses committed; 

is twice the Liability and Medical Expenses 

limit. 

Subject to Paragraph a. or b. above, whichever 

applies, the Damage To Premises Rented To 

You Limit is the most we will pay for damages 

because of "property damage" to any one 

premises, while rented to you, or in the case of 

fire, while rented to you or temporarily occupied by you with permission of the owner. 

The Limits of Insurance of Section – Liability 

apply separately to each consecutive annual 

period and to any remaining period of less than 

12 months, starting with the beginning of the 

policy period shown in the Declarations, unless 

the policy period is extended after issuance for 

an additional period of less than 12 months. In 

that case, the additional period will be deemed 

part of the last preceding period for purposes 

of determining the Limits of Insurance. 

E. Liability And Medical Expenses General 

Conditions 

 1. Bankruptcy 

Bankruptcy or insolvency of the insured or of 

the insured's estate will not relieve us of our 

obligations under this policy. 

 2. Duties In The Event Of Occurrence, 

Offense, Claim Or Suit 

 a. You must see to it that we are notified as 

soon as practicable of an "occurrence" or 

an offense which may result in a claim. To 

the extent possible, notice should include: 

 (1) How, when and where the "occurrence" 

or offense took place; 

 (2) The names and addresses of any injured persons and witnesses; and 

 (3) The nature and location of any injury or 

damage arising out of the "occurrence" 

or offense. 

b. If a claim is made or "suit" is brought 

against any insured, you must: 

 (1) Immediately record the specifics of the 

claim or "suit" and the date received; 

and 

 (2) Notify us as soon as practicable. 

You must see to it that we receive written 

notice of the claim or "suit" as soon as practicable. 

 c. You and any other involved insured must: 

 (1) Immediately send us copies of any demands, notices, summonses or legal 

papers received in connection with the 

claim or "suit"; 

 (2) Authorize us to obtain records and other 

information; 

 (3) Cooperate with us in the investigation or 

settlement of the claim or defense 

against the "suit"; and 

 (4) Assist us, upon our request, in the enforcement of any right against any person or organization that may be liable to 

the insured because of injury or damage 

to which this insurance may also apply. 

 d. No insured will, except at that insured's own 

cost, voluntarily make a payment, assume 

any obligation, or incur any expense, other 

than for first aid, without our consent. 

3. Legal Action Against Us 

No person or organization has a right under 

this policy: 

 a. To join us as a party or otherwise bring us 

into a "suit" asking for damages from an insured; or 

 b. To sue us on this policy unless all of its 

terms have been fully complied with. 
BP 00 03 01 10 © Insurance Services Office, Inc., 2009 Page 43 of 49

A person or organization may sue us to recover on an agreed settlement or on a final 

judgment against an insured; but we will not be 

liable for damages that are not payable under 

the terms of this policy or that are in excess of 

the applicable Limit of Insurance. An agreed 

settlement means a settlement and release of 

liability signed by us, the insured and the 

claimant or the claimant's legal representative. 

 4. Separation Of Insureds 

Except with respect to the Limits of Insurance 

of Section – Liability, and any rights or duties 

specifically assigned in this policy to the first 

Named Insured, this insurance applies: 

 a. As if each Named Insured were the only 

Named Insured; and 

 b. Separately to each insured against whom 

claim is made or "suit" is brought. 

 F. Liability And Medical Expenses Definitions 

 1. "Advertisement" means a notice that is broadcast or published to the general public or specific market segments about your goods, products or services for the purpose of attracting 

customers or supporters. For the purposes of 

this definition: 

 a. Notices that are published include material 

placed on the Internet or on similar electronic means of communication; and 

b. Regarding websites, only that part of a 

website that is about your goods, products 

or services for the purposes of attracting 

customers or supporters is considered an 

advertisement. 

2. "Auto" means: 

 a. A land motor vehicle, trailer or semitrailer 

designed for travel on public roads, including any attached machinery or equipment; 

or 

b. Any other land vehicle that is subject to a 

compulsory or financial responsibility law or 

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

principally garaged.

However, "auto" does not include "mobile 

equipment". 

 3. "Bodily injury" means bodily injury, sickness or 

disease sustained by a person, including death 

resulting from any of these at any time. 

 4. "Coverage territory" means: 

 a. The United States of America (including its 

territories and possessions), Puerto Rico 

and Canada; 

 b. International waters or airspace, but only if 

the injury or damage occurs in the course of 

travel or transportation between any places 

included in Paragraph a. above; or 

 c. All other parts of the world if the injury or 

damage arises out of: 

 (1) Goods or products made or sold by you 

in the territory described in Paragraph a.

above; 

 (2) The activities of a person whose home 

is in the territory described in Paragraph 

a. above, but is away for a short time on 

your business; or 

 (3) "Personal and advertising injury" offenses that take place through the Internet or similar electronic means of communication; 

provided the insured's responsibility to pay 

damages is determined in a "suit" on the merits 

in the territory described in Paragraph a. above 

or in a settlement we agree to. 

 5. "Employee" includes a "leased worker". "Employee" does not include a "temporary worker". 

 6. "Executive officer" means a person holding any 

of the officer positions created by your charter, 

constitution, bylaws or any other similar governing document. 

 7. "Hostile fire" means one which becomes uncontrollable or breaks out from where it was intended to be. 

8. "Impaired property" means tangible property, 

other than "your product" or "your work", that 

cannot be used or is less useful because: 

 a. It incorporates "your product" or "your work" 

that is known or thought to be defective, deficient, inadequate or dangerous; or 

 b. You have failed to fulfill the terms of a contract or agreement; 

if such property can be restored to use by: 

 (1) The repair, replacement, adjustment or 

removal of "your product" or "your work"; 

or 

 (2) Your fulfilling the terms of the contract or 

agreement. 

9. "Insured contract" means: 

 a. A contract for a lease of premises. However, that portion of the contract for a lease 

of premises that indemnifies any person or 

organization for damage by fire to premises 

while rented to you or temporarily occupied 

by you with permission of the owner is not 

an "insured contract"; 
Page 44 of 49 © Insurance Services Office, Inc., 2009 BP 00 03 01 10

 b. A sidetrack agreement; 

 c. Any easement or license agreement, except in connection with construction or 

demolition operations on or within 50 feet of 

a railroad; 

 d. An obligation, as required by ordinance, to 

indemnify a municipality, except in connection with work for a municipality; 

 e. An elevator maintenance agreement; 

 f. That part of any other contract or agreement pertaining to your business (including 

an indemnification of a municipality in connection with work performed for a municipality) under which you assume the tort liability of another party to pay for "bodily 

injury" or "property damage" to a third person or organization. Tort liability means a 

liability that would be imposed by law in the 

absence of any contract or agreement. 

Paragraph does not include that part of 

any contract or agreement: 

 (1) That indemnifies a railroad for "bodily 

injury" or "property damage" arising out 

of construction or demolition operations, 

within 50 feet of any railroad property 

and affecting any railroad bridge or trestle, tracks, roadbeds, tunnel, underpass 

or crossing; 

 (2) That indemnifies an architect, engineer 

or surveyor for injury or damage arising 

out of: 

 (a) Preparing, approving or failing to 

prepare or approve maps, drawings, 

opinions, reports, surveys, change 

orders, designs or specifications; or 

(b) Giving directions or instructions, or 

failing to give them, if that is the primary cause of the injury or damage; 

or 

 (3) Under which the insured, if an architect, 

engineer or surveyor, assumes liability 

for an injury or damage arising out of the 

insured's rendering or failure to render 

professional services, including those 

listed in Paragraph (2) above and supervisory, inspection or engineering services. 

 10. "Leased worker" means a person leased to you 

by a labor leasing firm under an agreement between you and the labor leasing firm, to perform duties related to the conduct of your business. "Leased worker" does not include a 

"temporary worker". 

11. "Loading or unloading" means the handling of 

property: 

 a. After it is moved from the place where it is 

accepted for movement into or onto an aircraft, watercraft or "auto"; 

 b. While it is in or on an aircraft, watercraft or 

"auto"; or 

 c. While it is being moved from an aircraft, 

watercraft or "auto" to the place where it is 

finally delivered; 

but "loading or unloading" does not include the 

movement of property by means of a mechanical device, other than a hand truck, that is not 

attached to the aircraft, watercraft or "auto". 

 12. "Mobile equipment" means any of the following 

types of land vehicles, including any attached 

machinery or equipment: 

 a. Bulldozers, farm machinery, forklifts and 

other vehicles designed for use principally 

off public roads; 

 b. Vehicles maintained for use solely on or 

next to premises you own or rent; 

 c. Vehicles that travel on crawler treads; 

 d. Vehicles, whether self-propelled or not, on 

which are permanently mounted: 

 (1) Power cranes, shovels, loaders, diggers 

or drills; or 

 (2) Road construction or resurfacing equipment such as graders, scrapers or rollers; 

e. Vehicles not described in Paragraph a., b., 

c. or d. above that are not self-propelled 

and are maintained primarily to provide 

mobility to permanently attached equipment 

of the following types: 

 (1) Air compressors, pumps and generators, including spraying, welding, building cleaning, geophysical exploration, 

lighting and well servicing equipment; or 

 (2) Cherry pickers and similar devices used 

to raise or lower workers; 

 f. Vehicles not described in Paragraph a., b., 

c. or d. above maintained primarily for purposes other than the transportation of persons or cargo. 

However, self-propelled vehicles with the 

following types of permanently attached 

equipment are not "mobile equipment" but 

will be considered "autos": 

 (1) Equipment designed primarily for: 

 (a) Snow removal; 
BP 00 03 01 10 © Insurance Services Office, Inc., 2009 Page 45 of 49

 (b) Road maintenance, but not construction or resurfacing; or 

 (c) Street cleaning; 

 (2) Cherry pickers and similar devices 

mounted on automobile or truck chassis 

and used to raise or lower workers; and 

 (3) Air compressors, pumps and generators, including spraying, welding, building cleaning, geophysical exploration, 

lighting and well servicing equipment. 

However, "mobile equipment" does not include 

land vehicles that are subject to a compulsory 

or financial responsibility law or other motor 

vehicle insurance or motor vehicle registration 

law where they are licensed or principally garaged. Land vehicles subject to a compulsory 

or financial responsibility law or other motor 

vehicle insurance law or motor vehicle registration law are considered "autos". 

 13. "Occurrence" means an accident, including 

continuous or repeated exposure to substantially the same general harmful conditions. 

 14. "Personal and advertising injury" means injury, 

including consequential "bodily injury", arising 

out of one or more of the following offenses: 

a. False arrest, detention or imprisonment; 

 b. Malicious prosecution; 

 c. The wrongful eviction from, wrongful entry 

into, or invasion of the right of private occupancy of a room, dwelling or premises that 

a person occupies, committed by or on behalf of its owner, landlord or lessor; 

d. Oral or written publication, in any manner, 

of material that slanders or libels a person 

or organization or disparages a person's or 

organization's goods, products or services; 

 e. Oral or written publication, in any manner, 

of material that violates a person's right of 

privacy; 

The use of another's advertising idea in 

your "advertisement"; or 

 g. Infringing upon another's copyright, trade 

dress or slogan in your "advertisement". 

 15. "Pollutants" mean any solid, liquid, gaseous or 

thermal irritant or contaminant, including 

smoke, vapor, soot, fumes, acids, alkalis, 

chemicals and waste. Waste includes materials 

to be recycled, reconditioned or reclaimed. 

16. "Products-completed operations hazard": 

 a. Includes all "bodily injury" and "property 

damage" occurring away from premises you 

own or rent and arising out of "your product" 

or "your work" except: 

 (1) Products that are still in your physical 

possession; or 

 (2) Work that has not yet been completed 

or abandoned. However, "your work" will 

be deemed completed at the earliest of 

the following times: 

 (a) When all of the work called for in 

your contract has been completed. 

 (b) When all of the work to be done at 

the job site has been completed if 

your contract calls for work at more 

than one job site. 

 (c) When that part of the work done at 

the job site has been put to its intended use by any other person or 

organization other than another contractor or subcontractor working on 

the same project. 

Work that may need service, maintenance, correction, repair or replacement, 

but which is otherwise complete, will be 

treated as completed. 

The "bodily injury" or "property damage" 

must occur away from premises you own or 

rent, unless your business includes the selling, handling or distribution of "your product" for consumption on premises you own 

or rent. 

 b. Does not include "bodily injury" or "property 

damage" arising out of: 

 (1) The transportation of property, unless 

the injury or damage arises out of a 

condition in or on a vehicle not owned or 

operated by you, and that condition was 

created by the "loading or unloading" of 

that vehicle by any insured; or 

 (2) The existence of tools, uninstalled 

equipment or abandoned or unused materials. 

17. "Property damage" means: 

 a. Physical injury to tangible property, including all resulting loss of use of that property. 

All such loss of use shall be deemed to occur at the time of the physical injury that 

caused it; or 

 b. Loss of use of tangible property that is not 

physically injured. All such loss of use shall 

be deemed to occur at the time of the "occurrence" that caused it. 
Page 46 of 49 © Insurance Services Office, Inc., 2009 BP 00 03 01 10

For the purposes of this insurance, electronic 

data is not tangible property. 

As used in this definition, electronic data 

means information, facts or programs stored 

as, created or used on, or transmitted to or 

from computer software, including systems and 

applications software, hard or floppy disks, CDROMs, tapes, drives, cells, data processing 

devices or any other media which are used 

with electronically controlled equipment. 

 18. "Suit" means a civil proceeding in which damages because of "bodily injury", "property damage", or "personal and advertising injury" to 

which this insurance applies are alleged. "Suit" 

includes: 

a. An arbitration proceeding in which such 

damages are claimed and to which the insured must submit or does submit with our 

consent; or 

 b. Any other alternative dispute resolution 

proceeding in which such damages are 

claimed and to which the insured submits 

with our consent. 

 19. "Temporary worker" means a person who is 

furnished to you to substitute for a permanent 

"employee" on leave or to meet seasonal or 

short-term workload conditions. 

20. "Volunteer worker" means a person who is not 

your "employee", and who donates his or her 

work and acts at the direction of and within the 

scope of duties determined by you, and is not 

paid a fee, salary or other compensation by 

you or anyone else for their work performed for 

you. 

21. "Your product": 

 a. Means: 

 (1) Any goods or products, other than real 

property, manufactured, sold, handled, 

distributed or disposed of by: 

 (a) You; 

 (b) Others trading under your name; or 

(c) A person or organization whose 

business or assets you have acquired; and 

 (2) Containers (other than vehicles), materials, parts or equipment furnished in 

connection with such goods or products. 

 b. Includes: 

 (1) Warranties or representations made at 

any time with respect to the fitness, 

quality, durability, performance or use of 

"your product"; and 

 (2) The providing of or failure to provide 

warnings or instructions. 

 c. Does not include vending machines or 

other property rented to or located for the 

use of others but not sold. 

22. "Your work": 

 a. Means: 

 (1) Work or operations performed by you or 

on your behalf; and 

 (2) Materials, parts or equipment furnished 

in connection with such work or operations. 

 b. Includes: 

 (1) Warranties or representations made at 

any time with respect to the fitness, 

quality, durability, performance or use of 

"your work"; and 

 (2) The providing of or failure to provide 

warnings or instructions. 

SECTION III – COMMON POLICY CONDITIONS 

(APPLICABLE TO SECTION I – PROPERTY AND 

SECTION II – LIABILITY) 

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. Five days before the effective date of cancellation if any one of the following conditions exists at any building that is Covered 

Property in this policy; 

 (1) The building has been vacant or unoccupied 60 or more consecutive days. 

This does not apply to: 

 (a) Seasonal unoccupancy; or 

 (b) Buildings in the course of construction, renovation or addition. 

Buildings with 65% or more of the rental 

units or floor area vacant or unoccupied 

are considered unoccupied under this 

provision. 

 (2) After damage by a Covered Cause of 

Loss, permanent repairs to the building: 

 (a) Have not started, and 

 (b) Have not been contracted for, 

within 30 days of initial payment of loss. 

 (3) The building has: 

 (a) An outstanding order to vacate; 
BP 00 03 01 10 © Insurance Services Office, Inc., 2009 Page 47 of 49

 (b) An outstanding demolition order; or 

 (c) Been declared unsafe by governmental authority. 

 (4) Fixed and salvageable items have been 

or are being removed from the building 

and are not being replaced. This does 

not apply to such removal that is necessary or incidental to any renovation or 

remodeling. 

(5) Failure to: 

 (a) Furnish necessary heat, water, 

sewer service or electricity for 30 

consecutive days or more, except 

during a period of seasonal unoccupancy; or 

 (b) Pay property taxes that are owing 

and have been outstanding for more 

than one year following the date due, 

except that this provision will not apply where you are in a bona fide dispute with the taxing authority regarding payment of such taxes. 

 b. 10 days before the effective date of cancellation if we cancel for nonpayment of premium. 

 c. 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 suffi

cient 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. Concealment, Misrepresentation Or Fraud 

This policy is void in any case of fraud by you as 

relates to this policy at any time. It is also void if 

you or any other insured, at any time, intentionall

conceal or misrepresent a material fact concerning: 

 1. This policy; 

 2. The Covered Property; 

 3. Your interest in the Covered Property; or 

 4. A claim under this policy. 

D. Examination Of Your Books And Records 

We may examine and audit your books and records as they relate to this policy at any time dur

ing the policy period and up to three years afterward. 

E. 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 and 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. 

 F. 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. 
Page 48 of 49 © Insurance Services Office, Inc., 2009 BP 00 03 01 10

G. Liberalization 

If we adopt any revision that would broaden the 

coverage under this policy without additional premium within 45 days prior to or during the policy 

period, the broadened coverage will immediately 

apply to this policy. 

H. Other Insurance 

 1. If there is other insurance covering the same 

loss or damage, 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 of Section – Property. 

 2. Business Liability Coverage is excess over: 

 a. Any other insurance that insures for direct 

physical loss or damage; or 

b. Any other primary insurance available to 

you covering liability for damages arising 

out of the premises or operations for which 

you have been added as an additional insured by attachment of an endorsement. 

 3. When this insurance is excess, we will have no 

duty under Business Liability Coverage to defend any claim or "suit" that any other insurer 

has a duty to defend. If no other insurer defends, we will undertake to do so, but we will 

be entitled to the insured's rights against all 

those other insurers. 

 I. Premiums 

 1. The first Named Insured shown in the Declarations: 

 a. Is responsible for the payment of all premiums; and 

 b. Will be the payee for any return premiums 

we pay. 

 2. The premium shown in the Declarations was 

computed based on rates in effect at the time 

the policy was issued. On each renewal, continuation or anniversary of the effective date of 

this policy, we will compute the premium in accordance with our rates and rules then in effect. 

 3. With our consent, you may continue this policy 

in force by paying a continuation premium for 

each successive one-year period. The premium must be: 

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

b. Determined in accordance with Paragraph 

2. above. 

Our forms then in effect will apply. If you do not 

pay the continuation premium, this policy will 

expire on the first anniversary date that we 

have not received the premium. 

 4. Undeclared exposures or change in your business operation, acquisition or use of locations 

may occur during the policy period that are not 

shown in the Declarations. If so, we may require an additional premium. That premium will 

be determined in accordance with our rates 

and rules then in effect. 

 J. Premium Audit 

 1. This policy is subject to audit if a premium 

designated as an advance premium is shown 

in the Declarations. We will compute the final 

premium due when we determine your actual 

exposures. 

 2. Premium shown in this policy as advance premium is a deposit premium only. At the close of 

each audit period we will compute the earned 

premium for that period and send notice to the 

first Named Insured. The due date for audit 

premiums is the date shown as the due date 

on the bill. If the sum of the advance and audit 

premiums paid for the policy period is greater 

than the earned premium, we will return the 

excess to the first Named Insured. 

 3. The first Named Insured must keep records of 

the information we need for premium computation, and send us copies at such times as we 

may request. 

K. Transfer Of Rights Of Recovery Against Others 

To Us 

 1. Applicable to Businessowners Property Coverage: 

If any person or organization to or for whom we 

make payment under this policy has rights to 

recover damages from another, those rights 

are transferred to us to the extent of our payment. That person or organization must do 

everything necessary to secure our rights and 

must do nothing after loss to impair them. But 

you may waive your rights against another 

party in writing: 

 a. Prior to a loss to your Covered Property. 

b. After a loss to your Covered Property only 

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

 (1) Someone insured by this insurance; 

 (2) A business firm: 

 (a) Owned or controlled by you; or 

 (b) That owns or controls you; or 

 (3) Your tenant. 
BP 00 03 01 10 © Insurance Services Office, Inc., 2009 Page 49 of 49

You may also accept the usual bills of lading or 

shipping receipts limiting the liability of carriers. 

This will not restrict your insurance. 

 2. Applicable to Businessowners Liability Coverage: 

If the insured has rights to recover all or part of

any payment we have made under this policy, 

those rights are transferred to us. The insured 

must do nothing after loss to impair them. At 

our request, the insured will bring "suit" or 

transfer those rights to us and help us enforce 

them. This condition does not apply to Medical 

Expenses Coverage. 

 L. 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. 
Endorsements
Hiscox Insurance Company Inc.

Policy Number:

Named Insured:

Endorsement Number:

Endorsement Effective:

 

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

BOP E5206 CW (03/10) Page of 

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

EXCLUSION – PERSONAL INFORMATION

This endorsement modifies insurance provided under the following: 

BUSINESSOWNERS COVERAGE FORM

The following is added to paragraph B. Exclusions 

1. Applicable To Business Liability Coverage of 

Section II Liability:

Personal Information

This insurance does not apply to odily injury”, 

“property damage” or “personal and advertising 

injury caused by the insured’s failure to protect any

non public, personally identifiable information in the 

sured’s care, custody or control

UDC-1575520-BOP-19

CHIEF OF STAFF LLC

1

April 30, 2019
Hiscox Insurance Company Inc.

Policy Number:

Named Insured:

Endorsement Number:

Endorsement Effective:

 

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

BOP E5208 CW (03/10) Page of 

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

DEFINITION OF EMPLOYEE

This endorsement modifies insurance provided 

under the following: 

BUSINESSOWNERS COVERAGE FORM

With respect to Section Liability, Definition 

5. “Employee” in Paragraph F . Liability And 

Medical Expenses Definitions is deleted and 

replaced with the following:

5. “Employee” includes a “leased worker” and a 

“temporary worker”

UDC-1575520-BOP-19

CHIEF OF STAFF LLC

2

April 30, 2019
Hiscox Insurance Company Inc.

olicy Number:

Named Insured:

Endorsement Number:

Endorsement Effective:

 

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

BOP E5211 CW (03/10) Page of 

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

EXCLUSION – INTERCOMPANY PRODUCTS SUITS

This endorsement modifies insurance provided under the following: 

BUSINESSOWNERS COVERAGE FORM

The following is added to paragraph B. Exclusions 

1. Applicable To Business Liability Coverage of 

Section II Liability:

Intercompany Product Suits

This insurance does not apply to any claim for 

damages by any Named Insured against another 

Named Insured because of “bodily injury” or 

“property damage” arising out of “your products” and 

included within the “products completed operations 

hazard”.

UDC-1575520-BOP-19

CHIEF OF STAFF LLC

3

April 30, 2019
Hiscox Insurance Company Inc.

Policy Number:

Named Insured:

Endorsement Number:

Endorsement Effective:

 

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

BOP E5212 CW (03/10) Page of 

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

LOCK AND KEY REPLACEMENT

This endorsement modifies insurance provided under the following: 

BUSINESSOWNERS COVERAGE FORM

Section I Property, A. Coverage, paragraph 6. 

Coverage Extensions is amended to add the 

following:

Lock and Key Replacement

1. You may extend the insurance provided by 

this policy to apply to the:

(1) replacement of stolen keys;

(2) repair of locks;

(3) replacement of lock sets due to a breach 

of building security.

2. The most we will pay for loss or damage 

under this Extension is $1,000 unless a 

higher Limit of Insurance for Lock and Key 

Replacement is shown in the Declarations.

No Deductible applies to this Extension.

UDC-1575520-BOP-19

CHIEF OF STAFF LLC

4

April 30, 2019
Hiscox Insurance Company Inc.

Policy Number:

Named Insured:

Endorsement Number:

Endorsement Effective:

 

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

BOP E5214 CW (03/10) Page of 

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

NOTICE INFORMATION

This endorsement modifies insurance provided under the following: 

BUSINESSOWNERS COVERAGE FORM

SCHEDULE

Where To Send Notice

Phone: 866 424 8508

Email: reportacl im@hiscox.com

Mail: Hiscox

520 Madison Avenue 32nd Floor

 Attn: Direct Claims

New York, NY, 10022

Subparagraph 3. Duties In The Event Of Loss Or 

Damage in paragraph E. Property Loss 

Conditions of Section I – Property and 

Subparagraph 2. Duties In The Event Of 

Occurrence, Offense, Claim Or Suit in paragraph 

. Liability And Medical Expenses General 

Conditions of Section II – Liability are amended 

to include the following:

Any notification required by this policy shall be 

provided to us at the address listed in the above 

SCHEDULE

UDC-1575520-BOP-19

CHIEF OF STAFF LLC

5

April 30, 2019
Hiscox Insurance Company Inc.

Policy Number:

Named Insured:

Endorsement Number:

Endorsement Effective:

 

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

BOP E5215 CW (03/10) Page of 

RIGHT AND DUTY TO SELECT DEFENSE COUNSEL

This endorsement modifies insurance provided under the following: 

BUSINESSOWNERS COVERAGE FORM

In regard to any covered “suit” seeking damages

under Section Liability 1. Business Liability

our right and duty to defend shall include the right to 

select d fense counsel.

In regard to any suit arising from claims of owners of 

property that we elect to defend under subparagraph 

of paragraph 5. Loss Payment of Section I 

Property E. Property Loss Conditions, our 

election to defend such suits shall include the right 

to select defense counsel.

UDC-1575520-BOP-19

CHIEF OF STAFF LLC

6

April 30, 2019
Hiscox Insurance Company Inc.

Policy Number:

Named Insured:

Endorsement Number:

Endorsement Effective:

 

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

BOP E5217 CW (03/10) Page of 

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

CONNECTICUT – CANCELLATION PROVISION (14 DAY FULL REFUND)

This endorsement modifies insurance provided under the following:

BUSINESSOWNERS COVERAGE FORM

In paragraph A. Cancellation of Section III

COMMON POLICY CONDITIONS (APPLICABLE 

TO SECTION I PROPERTY AND SECTION II 

LIABILITY), subparagraph 5. is deleted in its entirety 

and replaced with the following: 

5. f this Policy s cancelled, we will send the Named 

Insured any premium refund due. If we cancel, the 

refund will be pro rata. 

If the Named Insured cancels, the refund may be 

less than pro rata. However, i the Named Insured

cancels within 14 days of the inception of the 

policy period shown in the Declarations without 

there having been (i) a Covered Cause of Loss; 

(ii) an offense arising out of your business that 

caused a “personal and advertising injury”; or (iii) 

an “occurrence” that caused “bodily injury” or 

“property damage”; or (iv) an accident that 

caused “bodily injury”; then we shall return in full 

any premium amount actually paid to us. In such 

event, the effective date of cancellation shall be 

deemed to be the inception date of the policy 

period shown in the Declarations

The cancellation will be effective even if we have 

not made or offered a refund.

UDC-1575520-BOP-19

CHIEF OF STAFF LLC

7

April 30, 2019
Hiscox Insurance Company Inc.

Policy Number:

Named Insured:

Endorsement Number:

Endorsement Effective:

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

BP 05 95 01 06 © ISO Properties, Inc., 2005 Page of 

ELECTRONIC DATA LIABILITY – LIMITED COVERAGE

This endorsement modifies insurance provided under the following:

BUSINESSOWNERS COVERAGE FORM

Loss Of Electronic Data Limit:

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

Section II Liability is amended as follows:

A. Exclusion 1.q. is replaced by the following:

1. Exclusions

This insurance does not apply to:

q . Electronic Data

Damages arising out of the loss of, loss of 

use of, damage to, corruption of, inability to 

access, or inability to manipulate "ele tronic 

data" that does not result from physical injury to tangible property. 

B . The following is added to Paragraph D. Liabi ity 

And Medical Expenses Limits Of Insurance:

Subject to 2. and 4. above, the Loss Of Electronic 

Data Limit shown in the Schedule above is the 

most we will pay under Paragraph A.1. Business 

Liability for "property damage" because of all loss 

of "electronic data" arising out of any one "occu

rence".

C . The following definition is added to Paragraph F. 

Liability And Medical Expenses Definitions

"Electronic data" means information, facts or programs stored as or on, created or used on, or 

transmitted to or from computer software (including systems and applications software), hard or 

floppy disks, CD ROMS, tapes, drives, cells, data 

processing devices or any other media which are 

used with electronically controlled equi ment.

D . For the purposes of the coverage provided by this 

endorsement, Paragraph F.17. Liability And 

M e ical E penses Definitions is replaced by the 

following:

17. Property damage" means:

a. Physical injury to tangible property, including all resulting loss of use of that property. 

All such loss of use shall be deemed to oc -

cur at the time of the physical injury that 

caused it; 

b . Loss of use of tangible property that is not 

physically injured. All such loss of use shall 

be deemed to occur at the time of the "oc -

currence" that caused it; or

c. Loss of, loss of use of, damage to, corruption of, inability to access, or inability to 

properly manipulate "electronic data", resul ing from physical injury to tangible property. All such loss of "electronic data" shall 

be deemed to occur at the time of the "oc -

currence" that caused it.

For the purposes of this insurance, "electronic 

data" is not tangible pro erty.

UDC-1575520-BOP-19

CHIEF OF STAFF LLC

8

April 30, 2019

25,000
Hiscox Insurance Company Inc.

Policy Number:

Named Insured:

Endorsement Number:

Endorsement Effective:

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

BP 05 01 07 02 © ISO Properties, Inc., 2001 Page of 

CALCULATION OF PREMIUM

This endorsement modifies insurance provided u der the following: 

BUSINESSOWNERS COVERAGE FORM

The following is added: 

The premium shown in the Declarations was com -

puted based on rates in effect at the time the policy 

was issued. On each renewal, continuation, or ann

versary of the effective date of this policy, we will 

compute the premium in acco dance with our rates 

and rules then in effect. 

UDC-1575520-BOP-19

CHIEF OF STAFF LLC

9

April 30, 2019
Hiscox Insurance Company Inc.

Policy Number:

Named Insured:

Endorsement Number:

Endorsement Effective:

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

BP 04 54 01 06  ISO Properties, Inc., 2004 Page of 

NEWLY ACQUIRED ORGANIZATIONS

This endorsement modifies insurance provided under the following:

BUSINESSOWNERS COVERAGE FORM

The following is added to Paragraph C. Who Is An

Insured in Section II Liability:

3. Any organization you newly acquire or form, 

other than a partnership, joint venture, or l

mited liability company and over which you 

mai tain ownership or majority interest, will 

qualify as a Named Insured if there is no other 

similar insurance available to that organization. 

H owever: 

a. Coverage under this provision is afforded 

only until the 90th day after you acquire or 

form the organization or the end of the po

cy period, whichever is earlier; 

b . Paragraph A.1. Business Liability does 

not apply to:

(1) "Bodily injury" or "property damage" that 

occurred before you acquired or formed 

the organization; and 

(2) "Personal and advertising injury" arising 

out of an offense committed before you 

acquired or formed the organization. 

No person or organization is an insured with 

respect to the conduct of any current or past 

partnership, joint venture, or limited liability 

company that is not shown as a Named Insured in the Declarations. 

UDC-1575520-BOP-19

CHIEF OF STAFF LLC

10

April 30, 2019
Hiscox Insurance Company Inc.

Policy Number:

Named Insured:

Endorsement Number:

Endorsement Effective:

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. 

BP 02 11 03 12 © Insurance Services Office, Inc., 2012 Page of 

CONNECTICUT CHANGES 

This endorsement modifies insurance provided under the following: 

BUSINESSOWNERS COVERAGE FORM 

A. Section I Property is amended as follows:

1. The following are added to Paragraph E.2. 

Appraisal Property Loss Condition:

a. You and we must notify the other of the 

appraiser selected within 20 days of the 

written demand for appraisal. 

b . If the appraisers do not agree on the 

selection of an umpire within 15 days, they 

must request selection of an umpire by a 

judge of a court having jurisdiction. 

2. Paragraph E.8.a.(1)(b) Vacancy Property Loss 

Condition is replaced by the following: 

(b) When this policy is issued to the owner or 

general lessee of a building, building means 

the entire building. Such building is vacant 

when 70% or more of its total square 

f o tage:

 (i) Is not rented to a lessee or sub-lessee 

or is not used by the lessee or sublessee to conduct its customary 

operations; and/or 

 (ii) Is not used by the building owner to 

conduct customary operations. 

3. Paragraph F.2. Mortgageholders Property 

General Condition is replaced by the following:

2. Mortgageholder's Interests And 

Obligations 

If loss hereunder is made payable, in whole 

or in part, to a designated mortgageholder 

not named herein as the insured, such 

interest in this policy may be cancelled by 

giving to such mortgageholder a ten days' 

written notice of cancellation. 

If you fail to render proof of loss such 

mortgageholder, upon notice, shall render 

proof of loss in the form specified within 

sixty (60) days thereafter and shall be 

subject to the provisions hereof relating to 

appraisal and time of payment and of 

bringing suit. If we claim that no liability 

existed as to the mortgagor or owner, we 

shall, to the extent of payment of loss to the 

mortgageholder, be subrogated to all the 

mortgageholder's rights of recovery, but 

without impairing mortgageholder's rights to 

sue; or we may pay off the mortgage debt 

and require an assignment thereof and of 

the mortgage. Other provisions relating to 

the interests and obligations of such 

mortgageholder may be added hereto by 

agreement in writing. 

4. Paragraph E.5.g . of the Property Loss 

Conditions is replaced by the following: 

E. Property Loss Conditions 

5. Loss Payment 

g . We will pay for covered loss or 

damage within 30 days after we 

receive the sworn proof of loss, 

provided you have complied with all 

the terms of this Policy and: 

(1) We have reached agreement with 

you on the amount of loss; or 

(2) An appraisal award has been 

made. 

UDC-1575520-BOP-19

CHIEF OF STAFF LLC

11

April 30, 2019
Page of © Insurance Services Office, Inc., 2012 BP 02 11 03 12

Prior to the expiration of the 

aforementioned time period, we may 

make partial payment towards the 

amount of loss as an advance 

payment, provided we and you agree 

to such advance payment in writing. 

The advance payment will be 

credited towards the total amount of 

covered loss or damage. An advance 

payment does not extend the time for 

payment of the total amount of 

c overed loss or damage. 

B . Section II Liability is amended as follows: 

The term spouse is replaced by the following: 

Spouse or party to a civil union recognized under 

Connecticut law. 

C . Section III Common Policy Conditions is 

amended as follows: 

1. Paragraph A. Cancellation is replaced by the 

following: 

A. Cancellation 

1. The Named Insured shown in the 

Declarations may cancel this policy by 

mailing or delivering to us advance 

written notice of cancellation. 

2. Cancellation Of Policies In Effect For 

Less Than 60 Days 

If this policy has been in effect for less 

than 60 days and is not a renewal of a 

policy we issued, we may cancel this 

policy for any reason by giving you 

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. Cancellation Of Policies In Effect For 

60 Days Or More 

a. If this policy has been in effect for 60 

days or more or this is a renewal of a 

policy we issued, we may cancel this 

policy by giving you written notice of 

cancellation at least: 

(1) 10 days before the effective date 

of cancellation if we cancel for 

one or more of the following 

r easons: 

(a) Nonpayment of premium; 

(b) Conviction of a crime arising 

out of acts increasing the 

hazard insured against; 

(c) Discovery of fraud or material 

misrepresentation by you i

obtaining the policy or in 

perfecting any claim under the 

policy; 

(d) Discovery of any willful or 

reckless act or omission by 

you increasing the hazard 

insured against; or 

(e) A determination by the 

C ommissioner that 

continuation of the policy 

would violate or place us in 

violation of the law; or 

(2) 60 days before the effective date 

of cancellation if we cancel for 

one or more of the following 

r easons: 

(a) Physical changes in the 

property which increase the 

hazard insured against; 

(b) A material increase in the 

hazard insured against; or 

(c) A substantial loss of 

reinsurance by us affecting 

this particular line of 

insurance. 

b . We may not cancel policies in effect 

for 60 days or more or renewal 

policies for any reason other than the 

reasons described in Paragraph 3.a.

c. If we cancel for nonpayment of 

premium, you may continue the 

coverage and avoid the effect of the 

c ancellation by payment in full at any 

time prior to the effective date of 

cancellation. 

d . Notice of cancellation will be sent or 

delivered by: 

(1) Registered mail; 

(2) Certified mail; or 

(3) Mail evidenced by a United 

States Post Office certificate of 

mailing. 

4. We will give notice to you at your last 

mailing address known to us. 
BP 02 11 03 12 © Insurance Services Office, Inc., 2012 Page of 

5. Notice of cancellation will state the 

s pecific reason for the cancellation and 

the effective date of cancellation. The 

policy period will end on that date. 

6. If this policy is cancelled, we will send 

the 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. 

Notice of cancellation will state that the 

excess premium (if not tendered) will be 

refunded on demand. 

7. If notice is mailed, proof of mailing will 

be sufficient proof of notice. 

2. The following paragraph is added and 

supersedes any provision to the contrary:

M . Nonrenewal 

1. If we decide not to renew this policy, we 

will mail or deliver to you a written notice 

of nonrenewal, stating the specific 

r eason for nonrenewal, at least 60 days 

before the expiration date of this policy. 

The notice will be sent to your address 

last known to us. 

2. This notice will be delivered or sent by: 

a. Registered mail; 

b . Certified mail; or 

c. Mail evidenced by a certificate of 

mailing. 

If notice is mailed, proof of mailing is 

sufficient proof of notice. 

3. However, we are not required to send 

this notice if nonrenewal is due to your 

failure to pay any advance premium 

required for renewal. 

D . The following paragraph is added to the 

Businessowners Coverage Form: 

If any conditions of The Standard Fire Insurance 

Policy of the State of Connecticut, as set forth in 

the General Statutes of Connecticut, are 

c onstrued to be more liberal than any other policy 

condition, the conditions of The Standard Fire 

Insurance Policy will apply. 

E. The following is added to any provision which uses 

the term actual cash value as it pertains to direct 

loss or damage to a covered building caused b y

Covered Cause of Loss: 

The actual cash value immediately prior to the 

time of such loss or damage shall be the amount 

which it would cost to repair or replace such 

building with material of like kind and quality, 

minus reasonable depreciation. Depreciation, as 

used herein, means a decrease in value over a 

period of time due to wear and tear. 
Hiscox Insurance Company Inc.

Policy Number:

Named Insured:

Endorsement Number:

Endorsement Effective:

 

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

BOP E5202 CW (03/10) Page of 

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

AGGREGATE LIMIT ENDORSEMENT (DOUBLE LIMIT)

This endorsement modifies insurance provided under the following: 

BUSINESSOWNERS COVERAGE FORM

Subparagraph Aggregate Limits in paragraph D. 

Liability and Medical Expenses Limits of 

Insurance of Section II Liability is deleted and 

replaced with the following:

4. Aggregate Limits

The most we will pay for all:

(1) “Bodily injury” and “property damage”;

(2) Plus medical expenses;

(3) Plus all “personal and advertising injury” 

caused by offenses committed;

is twice the Liability and Medical Expenses limit

The Damage To Premises Rented To You Limit is 

the most we will pay for damages because of 

“property damage” to any one premises, while 

rented to you, or in the case of fire, while rented to 

you or temporarily occupied by you with permission 

of the owner.

The Limits of Insurance of Section Liability apply 

separately to each consecutive annual period and to 

any remaining period of less than 12 months, 

starting with the beginning of the policy period 

shown in the Declarations, unless the policy period 

is extended after issuance for an additional period of 

less than 12 months. In that case, the additional 

period will be deemed part of the last preceding 

period for purposes of determining the Limits of 

Insurance. 

UDC-1575520-BOP-19

CHIEF OF STAFF LLC

12

April 30, 2019
Hiscox Insurance Company Inc. 

Policy Number: 

Named Insured: 

Endorsement Number: 

Endorsement Effective: 

BOP E5422 CW (02/15) Includes copyrighted material of Insurance Services Office, Inc., with its 

permission. 

Page 1 of 1 

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. 

BLANKET ADDITIONAL INSURED –LESSORS OF PREMISES, 

CLIENTS

BUSINESSOWNERS COVERAGE FORM 

A. The following is added to Paragraph C. Who Is An Insured in Section II Liability: 

3. If you have agreed in a written contract or agreement to add them as an additional insured 

to a policy providing the type of coverage afforded by this insurance, the following persons 

or organizations are added to this policy as additional insureds: 

a. Any person or organization from whom you lease any premises, but only with respect 

to liability arising out the ownership, maintenance, or use of that part of the premises 

leased to you.

However, this insurance does not apply to any structural alterations, new construction, 

or demolition operations performed by or on behalf of the additional insured.

A person or organization’s status as an additional insured under this subsection a. 

ends when you cease to be a tenant in the premises. 

b. Any person or organization for whom you are performing operations, but only with 

respect to liability arising out of:

(1) Your acts or omissions or of those acting on your behalf; and 

(2) The performance of your ongoing operations for the additional insured. 

A person or organization’s status as an additional insured under this subsection b. 

ends when your operations for that additional insured are completed.

UDC-1575520-BOP-19

CHIEF OF STAFF LLC

13

April 30, 2019
Hiscox Insurance Company Inc.

Policy Number:

Named Insured:

Endorsement Number:

Endorsement Effective:

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

BP 05 23 01 15 © Insurance Services Office, Inc., 2015 Pag of 

CAP ON LOSSES FROM CERTIFIED 

ACTS OF TERRORISM

This endorsement modifies insurance provided under the following:

BUSINESSOWNERS COVERAGE FORM

The following provisions are added to the Busines -

sowners Policy and apply to Property and L ability 

Coverages:

A CAP ON CERTIFIED TERRORISM LOSSES

"Certified act of terrorism" means an act that is 

certified by the Secretary of the Treasury, in ac -

cordance with the provisions of the federal Terro

ism Risk Insurance Act, to be an act of terrorism 

pursuant to such Act. The criteria contained in the 

Terrorism Risk Insu ance Act for a "certified act of 

terrorism" include the fo lowing:

The act resulted in insured losses in excess of 

$5 million in the aggregate, attributable to all 

types of insurance subject to the Terrorism 

Risk Insurance Act; and

2. The act is a violent act or an act that is dangerous to human life, property or infr structure 

and is 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 co duct of the United States 

Government by coercion.

If aggregate insured losses attributable to te rorist 

acts certified under the Terrorism Risk Insu ance 

Act exceed $100 billion in a calendar year and we 

have met our insurer deductible under the Terro

ism Risk Insurance Act, we shall not be liable for 

the payment of any portion of the amount of such 

losses that exceeds $100 billion, and in such case 

insured los es up to that amount are subject to pro 

rata allocation in accordance with procedures es -

tablished by the Secretary of the Treasury.

B .

T he terms and limitations of any terrorism exclusion, or the inapplicability or omission of a terro

ism excl sion, do not serve to create coverage for 

loss or injury or damage that is otherwise excluded 

der this Policy

UDC-1575520-BOP-19

CHIEF OF STAFF LLC

15

April 30, 2019
Hiscox Insurance Company Inc.

Policy Number:

Named Insured:

Endorsement Number:

Endorsement Effective:

THIS ENDORSEMENT IS ATTACHED TO AND MADE PART OF YOUR POLICY IN 

RESPONSE TO THE DISCLOSURE REQUIREMENTS OF THE TERRORISM RISK 

INSURANCE ACT. THIS ENDORSEMENT DOES NOT GRANT ANY COVERAGE OR 

CHANGE THE TERMS AND CONDITIONS OF ANY COVERAGE UNDER THE POLICY.

BP 05 15 01 15 © Insura nce Services Office, Inc., 2015 Page of 

DISCLOSURE PURSUANT TO 

TERRORISM RISK INSURANCE ACT

SCHEDULE

SCHEDULE PART I

Terrorism Premium (Certified Acts)

Additional information, if any, concerning the terrorism pr mium:

SCHEDULE PART II

Federal share of terrorism losses 85% year 2015; 84% year 2016; 83% year 2017; 82% year 2018; 81% 

year 2019 and 80% year 2020.

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

A. Disclosure Of Premium

In accordance with the federal Terrorism Risk Insurance Act, we are required to provide you with a 

notice disclosing the portion of your premium, if 

any, attributable to coverage for terrorist acts cert

fied under the Terrorism Risk Insurance Act. The 

portion of your premium attributable to such c overage is shown in the Schedule of this endorsement or in the policy De larations.

B . Disclosure Of Federal Participation In Payment 

Of Terrorism Losses

The United States Government, Department of the 

Treasury, will pay a share of terrorism losses insured under the federal program. he federal 

share equals a percentage (as shown in Part of 

the Schedule of this endorsement or n the policy 

Declarations) of that portion of the amount of such 

insured losses that exceeds the applicable insurer 

retention. However, if aggregate insured losses a

tributable to terrorist acts certified under the Te

rorism Risk Insurance Act exceed $100 bi lion in a 

calendar year, the Treasury shall not make any 

payment for any portion of the amount of such 

losses that exceeds $100 billion.

UDC-1575520-BOP-19

CHIEF OF STAFF LLC

16

April 30, 2019

6.00
Page of © Insurance Services Office, Inc., 2015 BP 05 15 01 15

C . Cap On Insurer Participation In Payment Of 

Terrorism Losses

If aggregate insured losses attributable to te rorist 

acts certified under the Terrorism Risk Insu ance 

Act exceed $100 billion in a calendar year and we 

have met our insurer deductible under the Terro

ism Risk Insurance Act, we shall not be liable for 

the payment of any portion of the amount of such 

losses that exceeds $100 billion, and in such case 

insured los es up to that amount are subject to pro 

rata allocation in accordance with procedures es -

tablished by the Secretary of the Treasury.
Hiscox Insurance Company Inc.

Policy Number:

Named Insured

Endorsement Number:

Endorsement Effective:

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

BP 04 04 01 10 © Insurance Services Office, Inc., 200 Page of 

HIRED AUTO AND NON OWNED AUTO LIABILITY

This endorsement modifies insurance provided under the following: 

BUSINESSOWNERS COVERAGE FORM

SCHEDUL E

Coverage Additional Premium

A. Hired Auto Liability

B . Non wned Auto Liability

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

A. Insurance is provided only for those coverages for 

w hich a specific premium charge is shown in the 

Declarations or in the Schedule. 

1. Hired Auto Liability 

The insurance provided under Paragraph A.1.

Business Liability in Section Liability

applies to "bodily injury" or "property damage" 

arising out of the maintenance or use of a 

"hired auto" by you or your "employees" in the 

course of your business. 

2. Non wned Auto Liability 

The insurance provided under Paragraph A.1.

Business Liability in Section Liability

applies to "bodily injury" or "property damage" 

arising out of the use of any "non owned auto" 

in your business by any person. 

B . For insurance provided by this endorsement only: 

1. The exclusions under Paragraph B.1. Appli

cable To Business Liability Coverage in 

Section II Liability other than Exclusions a., 

b., d., f. and and the Nuclear Energy Liabil

ity Exclusion, are deleted and replaced by the 

following: 

a. "Bodily injury" to: 

(1) An "employee" of the insured arising out 

of and in the course of: 

(a) Employment by the insured; or 

(b) Performing duties related to the 

conduct of the insured's business; or 

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

sister of that "employee" as a conse

quence of Paragraph (1) above. 

This exclusion applies: 

(1) Whether the insured may be liable as an 

employer or in any other capacity; and 

(2) To any obligation to share damages with 

or repay someone else who must pay 

damages because of injury. 

This exclusion does not apply to: 

(1) Liability assumed by the insured under 

an "insured contract"; or 

UDC-1575520-BOP-19

CHIEF OF STAFF LLC

17

April 30, 2019

179.00

0.00
Page of © Insurance Services Office, Inc., 200 BP 04 04 01 10

(2) "Bodily injury" arising out of and in the 

course of domestic employment by the 

insured unless benefits for such injury 

are in whole or in part either payable or 

required to be provided under any work

ers compensation law. 

b . "Property damage" to: 

(1) Property owned or being transported by, 

or rented or loaned to the insured; or 

(2) Property in the care, custody or control 

of the insured.

2. Paragraph C. Who Is An Insured in Section II 

Liability is replaced by the following: 

1. Each of the following is an insured under 

this endorsement to the extent set forth be

low:

a. You;

b . Any other person using a "hired auto" 

with your permission; 

c. For a "non owned auto":

(1) Any partner or "executive officer" of 

yours; or

(2) Any "employee" of yours

but only while such "non owned auto" is 

being used in your business; and 

d . Any other person or organization, but 

only for their liability because of acts or 

omissions of an insured under a., b . or 

c. above. 

2. None of the following is an insured:

a. Any person engaged in the business of 

his or her employer for "bodily injury" to 

any co "employee" of such person in

jured in the course of employment, or to 

the spouse, child, parent, brother or sis

ter of that co "employee" as a conse

quence of such "bodily injury", or for any 

obligation to share damages with or re

pay someone else who must pay dam

ages because of the injury; 

b . Any partner or "executive officer" for any 

"auto" owned by such partner or officer 

or a member of his or her household; 

c. Any person while employed in or other

wise engaged in duties in connection 

with an "auto business", other than an 

"auto business" you operate; 

d . The owner or lessee (of whom you are a 

sublessee) of a "hired auto" or the 

owner of a "non owned auto" or any 

agent or "employee" of any such owner 

or lessee; or

e. Any person or organization for the con

duct of any current or past partnership 

or joint venture that is not shown as a 

Named Insured in the Declarations.

C . For the purposes of this endorsement only, Para

graph H. Other Insurance in Section III Com

mon Policy Conditions is replaced by the follow

ing:

This insurance is excess over any primary insur

ance covering the "hired auto" or "non owned 

auto".

D . The following additional definitions apply: 

1. "Auto usiness" means the business or occu

pation of selling, repairing, servicing, storing or 

parking "autos". 

2. "Hired uto" means any "auto" you lease, hire, 

rent or borrow. This does not include any 

"auto" you lease, hire, rent or borrow from any 

of your "employees", your partners or your "ex

ecutive officers" or members of their house

holds.

3. "Non wned uto" means any "auto" you do 

not own, lease, hire, rent or borrow which is 

used in connection with your business. This in

cludes "autos" owned by your "employees", 

your partners or your "executive officers", or 

members of their households, but only while 

used in your business or your personal affairs.
Notices
Hiscox Insurance Company Inc. 

ECONOMIC AND TRADE SANCTIONS POLICYHOLDER NOTICE 

INT N001 CW 01 09 Page 1 of 1 

Hiscox is committed to complying with the U.S. Department of Treasury Office of Foreign Assets Control (OFAC) 

requirements. OFAC administers and enforces economic sanctions policy based on Presidential declarations of 

national emergency. OFAC has identified and listed numerous foreign agents, front organizations, terrorists, and 

narcotics traffickers as Specially Designated Nationals (SDN’s) and Blocked Persons. OFAC has also identified 

Sanctioned Countries. A list of Specially Designated Nationals, Blocked Persons and Sanctioned Countries may be 

found on the United States Treasury’s web site http://www.treas.gov/offices/enforcement/ofac/. 

Economic sanctions prohibit all United States citizens (including corporations and other entities) and permanent 

resident aliens from engaging in transactions with Specially Designated Nationals, Blocked Persons and Sanctioned 

Countries. Hiscox may not accept premium from or issue a policy to insure property of or make a claim payment to a 

Specially Designated National or Blocked Person. Hiscox may not engage in business transactions with a Sanctioned 

Country. 

A Specially Designated National or Blocked Person is any person who is determined as such by the Secretary of 

Treasury. 

A Sanctioned Country is any country that is the subject of trade or economic embargoes imposed by the laws or 

regulations of the United States. 

In accordance with laws and regulations of the United States concerning economic and trade embargoes, this policy 

may be rendered void from its inception with respect to any term or condition of this policy that violates any laws or 

regulations of the United States concerning economic and trade embargoes including, but not limited to the following: 

(1) Any insured under this Policy, or any person or entity claiming the benefits of such insured, who is or becomes 

a Specially Designated National or Blocked Person or who is otherwise subject to US economic trade 

sanctions; 

(2) Any claim or suit that is brought in a Sanctioned Country or by a Sanctioned Country government, where any 

action in connection with such claim or suit is prohibited by US economic or trade sanctions; 

(3) Any claim or suit that is brought by any Specially Designated National or Blocked Person or any person or 

entity who is otherwise subject to US economic or trade sanctions; 

(4) Property that is located in a Sanctioned Country or that is owned by, rented to or in the care, custody or control 

of a Sanctioned Country government, where any activities related to such property are prohibited by US

economic or trade sanctions; or 

(5) Property that is owned by, rented to or in the care, custody or control of a Specially Designated National or 

Blocked Person, or any person or entity who is otherwise subject to US economic or trade sanctions. 

Please read your Policy carefully and discuss with your broker/agent or insurance professional. You may also visit the 

US Treasury’s website at http://www.treas.gov/offices/enforcement/ofac/
Application Summary
Hiscox Insurance Company Inc.

Application Summary

© Hiscox Inc. 2010 Page 1

The following outlines the details you have given us about your business. We have relied on the accuracy of this information in

order to issue your policy. If any of the items below are incorrect or have changed, please call us at 888-202-3007 so that we

can update your policy details.

Your policy

Policy number: UDC-1575520-BOP-19

Quote reference number: 5300690

Product: Business Owners Policy

Business name: CHIEF OF STAFF LLC

Business address: 750 Main St Ste 1304

City: Hartford

State: CT

Zip code: 06103

Name: Bruce Hafford

Email address: STEVE@STSWORLD.NET

Telephone number: 860-875-2259

Liability and Medical Expense Limit

Coverage for claims of physical injury or property

damage that may occur on your premises or

where you conduct your business

$ 2,000,000

Deductible: $ 500

When would you like your policy to start? April 30, 2019

Your business

What is your primary type of business? Human Resources (HR)

Consulting

Your business’s ownership structure (please select one). Limited Liability Company

Do you currently have an insurance policy in effect for the coverage requested? Yes

Please provide the name of your insurance carrier: FOREMOST

I consent to engage in electronic transactions. Agree

What are your business's estimated gross sales during the next 12 months? Note:

Your best estimate is fine. Include all revenues, fees and commissions.

$ 800,000.00
© Hiscox Inc. 2010 Page 2

Including yourself, how many full-time, part-time, and temporary employees does

your business have? (Do not include subcontractors.)

5-10

Which of the following coverages do you want to include? Business Property (e.g. office

equipment , furniture, computers)

Is your business operated out of your home? No

Other than the business address provided above, how many additional locations

does your business own or rent?

0

For each location, please provide

Address: 750 Main St Ste 1304,

Hartford, CT 06103

Approximately how many square feet does your business occupy at this location? 450

Describe the construction of the building: Fire resistive or modified fire

resistive

Does the building contain an automatic sprinkler system? Yes

Is any manufacturing performed in this building? No

What is the total value of your business personal property at this location? $ 50,000

Please indicate if you use any of the safeguards below at any of your properties:

Premises equipped with smoke detectors

Premises equipped with burglar alarms

Exterior doors equipped with dead-bolt locks

Utilize safes for valuable items, money, and papers, etc.

Other; please explain

Yes

Yes

Yes

Yes

No

To protect your business’s electronic data, do you use firewalls and anti-virus

software, back up data frequently, and physically secure equipment that holds

Electronic Data?

Yes

Do you or your business supply, manufacture, or distribute any tangible goods or

products?

Note: Brochures, documents and reports are not considered as tangible goods.

No

Does your business perform any design, construction, installation, removal, or

physical repair of any property or tangible good?

No

Does your business provide any of the following services?

● Actuarial advice

● Construction management or architecture

● Credit counseling

● Engineering

● Financing or financial auditing

● Investment or tax advice

● Insurance placement or advice

● Legal advice

● Lobbying and/or political advice

● Medical advice

● Mergers and acquisitions or business valuations

No

Does your business use rented or non-owned vehicles (e.g. an employee’s car) for

business purposes?

Yes
© Hiscox Inc. 2010 Page 3

If your partners, officers, directors, trustees or employees use their vehicles for

business purposes, do you request that they have insurance for those vehicles?

Yes

Of the total value of your business personal property, what is the value of your

computer and electronic equipment? This includes PCs, laptops, PDAs, printers,

servers, storage devices, multi-functional devices etc.

$10,000

For the next 12 months, what is your estimated payroll expense for yourself, your

full-time, part-time, and temporary employees? (Do not include subcontractors.)

$ 800,000.00

Statements About Your Business

As the individual completing this transaction, you are authorized to purchase and

bind this insurance on behalf of the entity applying for coverage.

I have read and agree

Your business is not controlled or owned by any other firm, corporation, or entity. I have read and agree

For the entire period of time that you have owned and controlled the business, You

have not sold, purchased or acquired, discontinued, merged into or consolidated

with another business.

I have read and agree

Your business has never had any commercial insurance cancelled or rescinded. I have read and agree

During the last five years:

● You, or your business’s current and past partners, officers, directors, trustees

and employees have never been indicted for or convicted of any crime involving

fraud, bribery, arson or any arson-related crime in connection with any property.

● No bankruptcy has been filed by or against your business.

● No foreclosure, repossession, judgment or lien has been filed against your

business.

I have read and agree

Business Activities

Your Business does not conduct any of the following activities:

● Automotive repair or sales

● Food service/restaurant operations

● Medical services

● Retail operations

Note: This does not include the activities of your clients in any of these industries

I have read and agree

Claims and Loss History

Based upon your knowledge and the knowledge of your business’s current and

past partners, officers, directors and employees, during the last five years a third

party has never made a claim against your business and you do not know of any

reason why someone may make a claim.

I have read and agree

Based upon your knowledge and the knowledge of your business’s current and

past partners, officers, directors and employees, during the last five years you have

not experienced any property related losses.

I have read and agree

Indicate the number of property related losses 0
© Hiscox Inc. 2010 Page 4

Business Owners Insurance

The limits of liability represent the total amount available to pay losses or judgments and settlements for any claims. We

are not liable for any amounts that exceed these limits. Some losses may be paid that do not diminish these limits of

liability and we may pay these at our expense.

If coverage is provided, it shall apply only to occurrences that take place during the policy period.

Losses, judgments, and settlements incurred may be subject to a deductible amount that applies to an individual

coverage. The deductible is the amount you must pay before we will make any payments under the policy. Some

coverage may not be subject to a deductible, in which case you are not required to make payments before any

payments are made under the policy. Please consult the policy language for details.

If you have knowledge of any circumstance that may lead to a loss or a claim being made against you, coverage will be

excluded if such loss occurs or claim is made.

Losses or occurrences that took place prior to the inception of the policy are excluded.

Other information

Fraud Warning

It is a crime to knowingly and intentionally attempt to defraud an insurance company by providing false or misleading

information or concealing material information during the application process or when filing a claim. Such conduct could

result in your policy being voided and subject you to criminal and civil penalties.

Optional Terrorism coverage:

You have elected to purchase optional terrorism coverage for:

$ 6.00

You have confirmed that you agree with the General Statements provided. Yes

I agree to accept delivery of my insurance policy via email to the address provided. Yes

I have read the information above and confirm it is all correct. I understand that

by checking this box I am agreeing to enter into a binding agreement with Hiscox

Insurance.

Yes
Exhibit B
PO BOX 6260

AURORA IL 60598-6260 Hiscox Insurance Company Inc.

104 South Michigan Avenue, Suite 600

Chicago, Illinois 60603

June 16, 2020

Page 1

TH Version

Notice of Renewal

Bruce Hafford

750 Main St Ste 1304

Hartford, CT 06103

Named Insured: CHIEF OF STAFF LLC

Policy: Business Owners Policy

Policy Number: UDC-1575520-BOP-19

Dear Bruce Hafford,

It’s been our pleasure to serve you this past year. As your next period of coverage approaches, we look forward to

continuing our relationship for another year.

Your new period of policy coverage is scheduled to begin on April 30, 2020 at which time your current policy will

expire. There have been no changes made to your coverage.

Your new policy documents are attached. Please review them carefully. As a reminder, your annual premium for

your next period of coverage is $619.00 and no rate increases have been applied to your policy.

Your payments will be collected in the amounts and on the dates outlined in the attached billing summary, and they

will be charged to the same account you provided to us. If you chose our no-fee installment plan, you will continue

to pay by convenient monthly payments.

Each new policy year is a good opportunity to review your coverage against any changes in your business to make

sure your policy still fits your needs. Have any of the following happened in the last year?

● Your business grew or reduced gross sales or payroll by more than 25%.

● You have merged with or acquired another organization.

● Someone else bought your business.

● You or your business had a claim made against you or experienced a loss.

If any of these took place, please call us and have your policy number ready so we can discuss the relevant details

with you. If we do not hear from you, your policy will renew based on the information we already have on file, at our

current rates. Your next period of coverage will then start on the date referenced above.

EXHIBIT 

B
Hiscox Insurance Company Inc.

104 South Michigan Avenue, Suite 600

Chicago, Illinois 60603

Hiscox Inc. doing business in CA as Hiscox Insurance Agency Page 2

TH Version

If you have any questions or need to make a change to your coverage, please contact one of our friendly licensed

advisors at 800-867-4001.

Thank you for choosing Hiscox. We look forward to working with you in the upcoming year.

Sincerely,

Ben Walter, President, Hiscox Insurance Company Inc.
Exhibit C
A Guide To Your Business Owners Policy

© Hiscox Inc. 2010 Page 1

The following is a guide to your Business Owners policy. We have identified several key coverage items along with the limits

and deductibles you have selected. To make it easier, we have also added a brief explanation of those items.

We want you to feel confident about your new policy. If any of the information below is incorrect or if you have any questions,

please contact one of our advisors at 888-202-3007 (Mon-Fri, 7am-10pm EST) or manage your policy at:www.hiscox.com/

manage-your-policy.

Your business details

Name: Bruce Hafford

Business name: CHIEF OF STAFF LLC

Address: 750 Main St Ste 1304

City: Hartford

State: CT

Zip code: 06103

Occupation: Human Resources (HR) Consulting

Telephone number: 860-875-2259

Email address: STEVE@STSWORLD.NET

Your Business Owners Policy

Policy number: UDC-1575520-BOP-19

Policy effective dates:

This determines the time period during which your coverage applies.

From:

To:

April 30, 2019

April 30, 2020

Form of business:

This identifies the legal structure of your business and determines who is

insured under your policy.

Limited Liability Company

Total cost of policy: $ 619.00

Specific coverage selected

Business Personal Property Included

Buildings Excluded

Crime package Excluded

Electronic data package Excluded

Business interruption and extra expense Included

Hired/non-owned vehicle liability Included

EXHIBIT 

 C
© Hiscox Inc. 2010 Page 2

Liability and medical expenses Included

Optional terrorism coverage Elected

Properties listed on your policy

Premises no: 1

Address: 750 Main St Ste 1304

City: Hartford

State: CT

Zip code: 06103

Your limits for this property

Business Personal Property (BPP) limit

The most we will pay (per occurrence) for loss or damage to your business

equipment and property (e.g. computers, furniture) at this location.

$ 50,000

Deductible

The amount you must pay (per occurrence) for property losses covered

under the policy before the policy makes any payments.

$ 500

Additional coverage and limits

Business income and extra expense

We will pay for the actual income your business loses and extra expenses

you incur as a result of an insured loss that prevents you from running your

business.

Actual loss amount

for up to 12 months

Forgery or alteration

The most we will pay for losses resulting from forgery or alteration of checks

or similar instruments.

$2,500

Electronic data

The most we will pay to replace or restore your business’s lost or damaged

electronic data.

$10,000

Interruption of computer operations

The most we will pay for lost income your business may experience as a

result of an insured loss of electronic data, due to an interruption of your

computer operations.

$10,000

Business Personal Property away from your premises

The amount we will pay for loss or damage to property that is away from

your business’s premises.

$ 10,000

Personal effects

The most we will pay for loss or damage (apart from theft and equipment

used in your business) to personal property.

$2,500/premises

Valuable papers and records

The most we will pay (per occurrence) for loss or damage to your business’s

valuable papers and records.

$10,000 on premises

$5,000 off premises

Accounts receivable

This is the most we will pay (per occurrence) for lost receivables due to

physical damage to your records (e.g. invoices).

$10,000 on premises

$5,000 off premises
© Hiscox Inc. 2010 Page 3

Your liability coverage and limits

Liability and medical expenses

The most we will pay, to the extent you are liable, for all damages and

medical expenses that arise out of any one occurrence as well as personal

and advertising injury (e.g., libel, slander) sustained by any one person

or organization. Defense costs we incur, in the defense of a lawsuit filed

against you, will not reduce this limit.

$ 2,000,000

Aggregate limit

On your declaration page this appears as ‘Other than products/completed

operations aggregate limit.’ It is the most we will pay for all damages and

medical expenses for the duration of the policy. See the aggregate limits

endorsement in your policy.

$ 4,000,000

Damage to premises rented to you

The most we will pay for your liability for damage by fire to premises rented

to you. This limit also applies to your liability to premises you rent for a

period of 7 or fewer consecutive days. If you are a home-based business,

this coverage does not apply to damage to your home.

$ 50,000 any one premises

Medical expenses

The most we will pay for all medical expenses sustained by any one person.

$ 5,000 any one person

Deductible

No deductible applies to your liability coverage so you are not required to

make any payments in the event of such claims.

No deductible

Hired/Non-Owned Vehicle Liability

Hired/non-owned vehicle liability

This coverage is for claims arising from the use of a rented or non-owned

vehicle in the course of your business.

Included in your Liability and

Medical Expenses Limit

Other policy information

14 day full refund

Be confident that you have made the right choice. We give you 14 days to review your policy. If you are not satisfied and

have not had any claims or losses, you can cancel your policy back to its start date and receive a full refund.

Notice of claim

If you have a claim, please call us at 866-424-8508. You may also e-mail us at reportaclaim@hiscox.com

What does my Business Owners Policy cover?

For a summary showing examples of what you are and are not covered for, please read the Coverage Summary document.

This guide does not modify the terms and conditions of your policy, which are contained in your policy documents, nor does

it imply any claim is covered or not covered. We recommend that you read your policy documents to learn the details of your

coverage.
Reinventing Small Business Insurance

This part of the policy does cover

We want you to understand the Hiscox Business Owners Policy. This summary explains the main areas of 

coverage and those for which your business is and isn’t covered. 

If you have any questions about your coverage, please contact one of our advisors at 888-202-3007 

(Mon-Fri, 8am-10pm EST) or manage your policy at: www.hiscox.com/manage-your-policy.

Business Owners Policy 

Business Personal Property Coverage Summary

Business equipment

We cover for loss or damage to your business equipment (e.g., computers, printers, servers, and office furniture).

Tenant improvements

We cover improvements to your office space that you have made or acquired, but do not own and cannot 

legally remove.

Coverage in and away from the office

Your business equipment is insured when physically in your office. We also provide coverage for equipment 

you take away from the office, such as laptops, projectors, or other insured equipment.

Accidental damage included 

Not only do we protect your business equipment against standard risks like fire, we also cover losses 

due to accidental damage. 

Replacing damaged items

Most property protected under this policy is valued at its replacement cost and there is no deduction for 

depreciation. This means you can replace damaged items with equipment of like kind and quality. 

Personal effects

We provide up to $2,500 of coverage, per premise, for personal items that are damaged in an insured loss. 

However, this does not include the theft of those items or equipment used in your business.

Lost business income and extra expense

We will pay the actual income your business loses and extra expenses you incur for up to 12 months if you 

cannot operate your business as a result of damage to your insured equipment. This would include up to 60 days 

of employee payroll expenses. 

Restoration of electronic data

We provide up to $10,000 of coverage to replace or restore your electronic data that is lost as a result of an 

insured loss. This includes losses caused by a virus or malicious code. If you have purchased our Electronic 

Data Loss upgrade package, the limit is increased to $25,000. 
This part of the policy does not cover

Common claims examples

Lost income due to data loss

If your business suffers an electronic data loss, we will also cover up to $10,000 for the actual income your 

business loses and extra expenses you incur if you cannot operate your business. If you have purchased our 

Electronic Data Loss upgrade package, the limit is increased to $25,000.

Valuable papers and records

We will pay for loss or damage to your business’s valuable papers and records – up to $10,000 on your 

business premises and up to $5,000 if the incident happens away from your office.

Forgery or alteration

We will pay up to $2,500 for losses that result from the forgery or alteration of a check or similar financial 

document. Hiscox may also defend you if you are sued for failing to honor a financial document you believe 

has been forged. You can increase this limit by purchasing our Crime Package upgrade.

Accounts receivable

We will pay for lost receivables you cannot collect from your customers and extra collection expenses you incur 

as a result of damage to your records such as invoices. We cover up to $10,000 for losses to records at your 

business premises and up to $5,000 for losses to records away from your premises.

Earthquakes, floods, and volcanoes

We won’t cover you for losses caused by earthquakes, floods, or volcanoes. However, if a fire results from one 

of these events, we will cover the loss as a result of the fire.

Dishonesty/false pretense

We won’t cover your business for dishonest or criminal acts committed by you or your employees. We also 

won’t cover any losses for property given up under false pretense. Destruction of property by your employees 

may be covered, but theft by your employees is not. You may obtain coverage for employee theft by purchasing 

our Crime Package upgrade.

Utilities

We won’t cover losses due to the failure of a power, communication, or other utility service supplier.

Errors or omissions

We won’t cover any losses due to mistakes in the programming, processing, or storage of electronic data 

or processing of valuable papers and records.

Computer testing, installation, or repair

We won’t cover any losses due to mistakes in the design, installation, testing, maintenance, or modifications 

of your computer systems.

Insuring for full value

If you insure your property for less than 80% of the full replacement cost, you may not receive the full amount of 

your loss.

Stolen property — A break-in results in stolen business property as well as the theft of a client’s property that 

was in your possession. Your Hiscox Business Owners Policy will cover the loss up to your coverage limits for 

that location.
Equipment damaged away from the office — You take the train to visit a client. Your laptop is damaged 

during the journey. We offer coverage for equipment damaged outside the office. 

Business interruption — A fire sweeps through your office space, destroying your computer network and 

equipment, which you have insured as business personal property. As a result, your business can’t operate for 

two weeks. The lost income and extra expenses incurred from the loss are covered.

Coverage summaries, descriptions, and claims examples are provided for illustrative purposes only and are 

subject to the applicable policy limits, deductibles, exclusions, terms, and conditions. Not all insurance 

products and services are available in all states. Hiscox recommends you read the policy documents to learn 

the full details of coverage. 

Underwritten by Hiscox Insurance Company Inc., 233 North Michigan Avenue, Suite 1840, Chicago, IL 60601, as administered by Hiscox Inc., 

a licensed insurance provider in all states and DC.
This part of the policy does not cover

Reinventing Small Business Insurance

This part of the policy does cover

We want you to understand the Hiscox Business Owners Policy. This summary explains the main areas of 

coverage and those for which your business is and isn’t covered. 

If you have any questions about your coverage, please contact one of our advisors at 888-202-3007 

(Mon-Fri, 8am-10pm EST) or manage your policy at: www.hiscox.com/manage-your-policy. 

Business Owners Policy

Hired or Non-Owned Vehicle Liability Insurance 

Coverage Summary

Liability claims

We cover claims arising from the use of a rented or non-owned business vehicle for business purposes (e.g., if 

your employee drove their own car t a client’s office). If the employee is involved in an accident, your business

may be legally liable. This optional upgrade adds this coverage as part of your General Liability limit in your

Business Owners Policy. 

Defense costs

If you’re sued, even if you’re not at fault, we will appoint an attorney to defend you, even if the lawsuit 

is groundless. We will pay these defense costs on your behalf and they will not reduce your limits of liability.

Actions of your full-time and temporary staff

This upgrade covers the actions of all your employees (full-time or temporary staff) when driving a non-owned 

or rented vehicle for business purposes, to the extent your business is liable. 

Protection for your company, not your employees

It is important to remember that this coverage protects you for claims made against your business and not 

your employees driving the vehicles. 

Physical damage

This coverage doesn’t provide protection for physical damage to the rented or non-owned vehicles being used. 

Transportation of property

This doesn’t cover damage to property being transported or property within your care.
Common claims examples

The quick errand – You ask one of your employees to use their car to go on a quick errand and purchase office 

supplies for your office. While on the errand, the employee is involved in an accident and your business may be 

found liable for the damages. We will provide protection up to your coverage limits.

Your employees visiting clients – Many small business employees will use their own vehicles to make client 

visits. If they were involved in an accident, the policy would provide protection for the business against any such 

liability claims.

Coverage summaries, descriptions, and claims examples are provided for illustrative purposes only and are 

subject to the applicable policy limits, deductibles, exclusions, terms, and conditions. Not all insurance 

products and services are available in all states. Hiscox recommends you read the policy documents to learn 

the full details of coverage. 

Underwritten by Hiscox Insurance Company Inc., 104 South Michigan Avenue, Suite 600, Chicago, IL 6060 , as administered by Hiscox Inc., 

a licensed insurance provider in all states and DC.
Reinventing Small Business Insurance

This part of the policy does cover

We want you to understand the Hiscox Business Owners Policy. This summary explains the main areas of 

coverage and exclusions. 

If you have any questions about your coverage, please contact one of our advisors at 888-202-3007 

(Mon-Fri, 8am-10pm EST) or manage your policy at: www.hiscox.com/manage-your-policy. 

Business Owners Policy 

General Liability Coverage Summary

Bodily injury or property damage

To the extent you are legally liable, we cover damages or claims expenses if you injure a third party or damage 

someone else’s property (including damage due to a fire at a premise you rent, unless you work from home).

Medical payments

We will make medical payments as a result of bodily injury that occurs in the course of your business operations,

regardless of fault.

Defense costs

If you’re sued, even if you’re not at fault, we will appoint an attorney to defend you, regardless of whether the 

lawsuit is groundless. We will pay these defense costs on your behalf and they will not reduce your limits.

Personal and advertising injury

We cover claims of libel and slander that are not part of your professional services. We also protect you if your 

advertisement unintentionally uses a third party’s advertising idea or infringes upon another’s copyright. We do 

not provide this coverage to marketing or PR professionals, research consultants, graphic designers, lawyers, real 

estate agents/brokers or property managers. 

Electronic data liability

Specifically added for consultants and technology service providers, Hiscox covers your liability for damage 

to someone’s electronic data resulting from the physical damage of property. We provide up to $25,000 

of coverage.

Worldwide insurance coverage

We cover damage that occurs in the United States, its territories, and Canada. We also offer some coverage for 

instances outside these areas while you’re away on short periods of travel.

Employees or temporary staff

Hiscox will cover claims arising from your employees’ or temporary staff’s actions if they were performed on 

behalf of your business.

Supplemental payments

Your Hiscox policy covers the following expenses, should they be incurred, without reducing your limit of liability:

All expenses we incur, including the defense of lawsuits

Up to $250 day for reasonable expenses (including loss of earnings) you incur as result of assisting

us in the defense of a claim or lawsuit

Interest on damage awards
This part of the policy does not cover

Common claims examples

Intent to injure

We won’t cover you for any act that occurs with the intent to injure. This includes personal and advertising 

injuries if you knew your actions were false or knew they violated the rights of others.

Outside the policy period

We won’t cover claims for bodily injury, property damage, or personal and advertising injury that do not 

occur during the policy period. 

Known claims and circumstances

We won’t cover your business for any claim or circumstance that could result in a claim you knew about prior 

to the start of your first Hiscox policy.

Personally identifiable information

We won’t cover your failure to protect any personally identifiable information that is in your care.

Professional services

We won’t cover any professional services performed by you. These types of risks may be covered as part 

of our Professional Liability policy.

Vehicles and boats

We won’t cover any claims arising out of the ownership or use of an automobile or a watercraft.

Workers’ compensation

We won’t cover any obligation you may have under a workers’ compensation claim or similar law.

Your property

We won’t cover claims for damage to property you own or have in your care. However, protection for your own 

business equipment is part of your Business Personal Property coverage. 

Personal and advertising injury

We don’t provide this coverage to marketing or PR professionals, research consultants, graphic designers, 

lawyers, real estate agents/brokers or property managers. However, this coverage is available as part of our 

Professional Liability policy. 

Bodily injury — A client falls over your bag and you are legally liable for the injury. We will cover the

subsequent claim and related medical expenses up to your limit of liability

Property damage and data loss — You spill coffee on a client’s server, causing damage and loss of data. 

We will cover the subsequent claim up to your limit of liability.

Personal injury — One of your employees is at lunch. He talks to the owner of the shop about one of your 

clients in a false and unflattering way. The client learns of this discussion and sues for slander. We will cover the 

subsequent claim, up to your limits of liability, and pay for an attorney to defend you, if necessary. 

Coverage summaries, descriptions, and claims examples are provided for illustrative purposes only and are 

subject to the applicable policy limits, deductibles, exclusions, terms, and conditions. Not all insurance 

products and services are available in all states. Hiscox recommends you read the policy documents to learn 

the full details of coverage. 

Underwritten by Hiscox Insurance Company Inc., 104 venue, ed by 

a licensed insurance provider in all states and DC.
Exhibit D
STATE OF CONNECTICUT 

BY HIS EXCELLENCY 

NED LAMONT 

EXECUTIVE ORDER NO. 7H I ,J 

PROTECTION OF PUBLIC HEALTH AND SAFETY DURING COVID-19 PANDEMIC 

AND RESPONSE - RESTRICTIONS ON WORKPLACES FOR NON-ESSENTIAL 

BUSINESSES, COORDINATED RESPONSE EFFORT 

WHEREAS, on March 10, 2020, I issued declarations of public health and civil preparedness 

emergencies, proclaiming a state of emergency throughout the State of Connecticut as a result of 

the coronavirus disease 2019 (COVID-19) outbreak in the United States and confirmed spread in 

Connecticut; and 

WHEREAS, my Executive Order No. 7, dated March 12, 2020, among other things, prohibited 

gatherings of 250 people or more for social and recreational activities, including but not limited 

to, community, civic, leisure, and sporting events; parades; concerts; festivals; movie screenings; 

plays or performances; conventions; and similar activities, and suspended various statutes and 

regulations to protect public health and safety; and 

WHEREAS, my Executive Order No. 7A, dated March 13, 2020, authorized the Commissioner 

of Public Health to restrict entrance into nursing homes and similar facilities to protect people who 

are most vulnerable to COVID-19; and 

WHEREAS, my Executive Order No. 7B, dated March 14, 2020, among other things, modified 

in-person open meetings requirements, waived certain rules to mitigate the critical shortage of 

hand sanitizer and personal protective equipment (PPE), maintain and increase the availability of 

childcare, and provide for increased healthcare resources and facilities; and 

WHEREAS, my Executive Order No. 7C, dated March 15, 2020, among other things, cancelled 

classes in public schools for at least two weeks, provided for closure and remote conduct of 

business at Department of Motor Vehicle branches, extended deadlines for municipal budget 

preparations, and suspended or modified laws and regulations governing health care data and 

visitation at ce1iain health care and congregate care settings; and 

WHEREAS, my Executive Order No. 7D, dated March 16, 2020, restricted social and recreational 

gatherings of all types to fewer than 50 people, closed bars and restaurants to all service except 

food and non-alcoholic beverage takeout and delivery, closed gyms, fitness centers and movie 

theaters, and prohibited on-site operations at off-track betting facilities; and 

Exhibit 

D
WHEREAS, my Executive Order No. 7E, dated March 17, 2020, among other things, waived the 

requirement for an 180-day school year, suspended fingerprinting availability to that for critical 

requirements, extended the duration of various licenses and permits under the authority of the 

Commissioner of Emergency Services and public protection, and suspended certain requirements 

for recoupment of overpayment and hearings conducted by the Department of Social Services; and 

WHEREAS, my Executive Order No. 7F, dated March 18, 2020, ordered the closure of Large 

Shopping Malls, the closure of places of public amusement except public parks and open recreation 

areas, expanded Medicaid telehealth coverage, waived in-person service, hearing, and screening 

requirements for ce11ain Probate Com1 proceedings in vulnerable group care settings, and clarified 

my order cancelling school classes; and 

WHEREAS, my Executive Order No. 7G, dated March 19, 2020, ordered the postponement of 

the presidential primaty, suspended non-critical court operations, expanded the availability of 

telehealth services, and enacted additional public health measures; 

WHEREAS, COVID-19 is a respiratory disease that spreads easily from person to person and 

may result in serious illness or death; and 

WHEREAS, the World Health Organization has declared the COVID-19 outbreak a pandemic; 

and 

WHEREAS, the risk of severe illness and death from COVID-19 appears to be higher for 

individuals who are 60 years of age or older and for those who have chronic health conditions; and 

WHEREAS, to reduce spread ofCOVID-19, the United States Centers for Disease Control and 

Prevention and the Connecticut Depattment of Public Health recommend implementation of 

community mitigation strategies to increase containment of the virus and to slow transmission of 

the virus, including cancellation of gatherings of people and social distancing in smaller 

gatherings; and 

WHEREAS, to facilitate the most timely and effective response to the COVID-19 emergency 

disaster, it is critical for the State of Connecticut to act quickly to gather, coordinate, and deploy 

goods, services, professionals, and volunteers of all kinds; 

WHEREAS, in a short period of time, COVID-19 has rapidly spread throughout Connecticut, 

necessitating updated and more stringent guidance from federal, state, and local officials; and 

NOW, THEREFORE, I, NED LAMONT, Governor of the State of Connecticut, by vittue of the 

authority vested in me by the Constitution and the laws of the State of Connecticut, do hereby 

ORDER AND DIRECT: 

I. Restrictions on Workplaces for Non-Essential Businesses. Effective on 

Mm·ch 23, 2020 at 8:00 p.m. and through April 22, 2020, unless earlier 

modified, extended, or terminated by me, all businesses and not-for-profit 

entities in the state shall employ, to the maximum extent possible, any 

telecommuting or work from home procedures that they can safely employ. 

Non-essential businesses or not-for-profit entities shall reduce their in-person 
workforces at any workplace locations by 100% not later than March 23, 2020 

at 8:00 p.m. Any essential business or entity providing essential goods, services 

or functions shall not be subject to these in-person restrictions. 

Not later than 8 p.m. on March 22, 2020, the Department of Economic and 

Community Development ("DECD") shall issue lawfully binding guidance 

about which businesses are essential. Those business shall include, but not be 

limited to, the 16 critical infrastructure sectors as defined by the Depa11ment of 

Homeland Security and available at https://wv./w.cisa.gov/criticalinfrastructure-sectors, essential health care operations including hospitals, 

clinics, dentists, pharmacies, elder care and home health care workers, 

companies and institutions involved in the research and development, 

manufacture, distribution, warehousing, and supplying of phmmaceuticals, 

biotechnology therapies, health care data, consumer health products, medical 

devices, diagnostics, equipment, services and any other healthcare related 

supplies or services; essential infrastructure, including utilities, wastewater and 

drinking water, telecommunications, airports and transportation infrastructure; 

manufacturing, including food processing, pharmaceuticals, and industries 

supp011ing the essential services required to meet national security 

commitments to the federal government and U.S. Militmy; the defense 

industrial base, including aerospace, mechanical and software engineers, 

manufacturing/production workers, aircraft and weapon system mechanics and 

maintainers; essential retail, including grocery stores and big-box stores or 

wholesale clubs, provided they also sell groceries; pharmacies, gas stations and 

convenience stores; food and beverage retailers (including liquor/package 

stores and manufacturer permittees) and restaurants, provided they comply with 

previous and future executive orders issued during the existing declared public 

health and civil preparedness emergency; essential services including trash and 

recycling collection, hauling, and processing, mail and shipping services; news 

media; legal and accounting services; banks, insurance companies, check 

cashing services, and other financial institutions; providers of basic necessities 

to economically disadvantaged populations; construction; vendors of essential 

services and goods necessmy to maintain the safety, sanitation and essential 

operations of residences or other essential businesses, including pest control 

and landscaping services; vendors that provide essential services or products, 

including logistics and technology support, child care and services needed to 

ensure the continuing operation of government agencies and the provision of 

goods, services or functions necessmy for the health, safety and welfare of the 

public. 

Any other business may be deemed essential after requesting an opinion from 

DECD, which shall review and grant such request, should it determine that it is 

in the best interest of the state to have the workforce continue at full capacity to 

properly respond to this emergency. 
2. Coordinated Response Effort. Effective immediately and for the duration of 

the public health and civil preparedness emergency, notwithstanding Section 

28-8a of the Connecticut General Statutes, in order to ensure the coordinated, 

clear and expeditious execution of civil preparedness functions for the 

protection of the public health, and pursuant to my emergency powers, 

including but not limited to Section 28-9(b) of the Connecticut General Statutes, 

no municipal chief executive officer or designee may enact or enforce any order 

that conflicts with any provision of any of my Executive Orders or an order 

issued by an executive agency pursuant to the existing public health and civil 

preparedness emergency, or issue any shelter-in-place order or order 

prohibiting travel, unless they first seek and receive written permission from 

the Department of Emergency Services and Public Protection. The provisions 

of this order shall not be deemed to invalidate any order previously issued by a 

municipal chief executive or designee or preclude a municipality from 

enforcing any existing local rule or ordinance that does not conflict with any 

executive order issued pursuant to my March 10, 2020 declaration of public 

health and civil preparedness emergency. 

Dated at Hartford, Connecticut, this 20th day of March, 2020. 

Jt:_ ;/~/t: Denise W. Merrill 

Secretary of the State 

Ned Lamont 

Governor 
Exhibit E
STATE OF CONNECTICUT 

BY HIS EXCELLENCY 

NED LAMONT 

EXECUTIVE ORDER NO. 7J 

PROTECTION OF PUBLIC HEALTH AND SAFETY DURING COVID-19 PANDEMIC 

AND RESPONSE- CLARIFYING EO NO. 7H REGARDING OPERATIONS AT NONESSENTIAL BUSINESSES AND PROVIDING FOR RAPID STATE GOVERNMENT 

EMERGENCY RESPONSE 

WHEREAS, on March 10, 2020, I issued declarations of public health and civil preparedness 

emergencies, proclaiming a state of emergency throughout the State of Connecticut as a result of 

the coronavirus disease 2019 (COVID-19) outbreak in the United States and confirmed spread in 

Connecticut; and 

WHEREAS, my Executive Order No. 7, dated March 12, 2020, among other things, prohibited 

gatherings of 250 people or more for social and recreational activities, including but not limited 

to, community, civic, leisure, and sporting events; parades; conceits; festivals; movie screenings; 

plays or performances; conventions; and similar activities, and suspended various statutes and 

regulations to protect public health and safety; and 

WHEREAS, my Executive Order No. 7A, dated March 13, 2020, authorized the Commissioner 

of Public Health to restrict entrance into nursing homes and similar facilities to protect people who 

are most vulnerable to COVID-19; and 

WHEREAS, my Executive Order No. 7B, dated March 14, 2020, among other things, modified 

in-person open meetings requirements, waived certain rules to mitigate the critical shortage of 

hand sanitizer and personal protective equipment (PPE), maintain and increase the availability of 

childcare, and provide for increased healthcare resources and facilities; and 

WHEREAS, my Executive Order No. 7C, dated March 15, 2020, among other things, cancelled 

classes in public schools for at least two weeks, provided for closure and remote conduct of 

business at Depa1tment of Motor Vehicle branches, extended deadlines for municipal budget 

preparations, and suspended or modified laws and regulations governing health care data and 

visitation at certain health care and congregate care settings; and 

WHEREAS, my Executive Order No. 7D, dated March 16, 2020, restricted social and recreational 

gatherings of all types to fewer than 50 people, closed bars and restaurants to all service except 

food and non-alcoholic beverage takeout and delivery, closed gyms, fitness centers and movie 

theaters, and prohibited on-site operations at off-track betting facilities; and 

Exhibit

E
WHEREAS, my Executive Order No. 7E, dated March 17, 2020, among other things, waived the 

requirement for an 180-day school year, suspended fingerprinting availability to that for critical 

requirements, extended the duration of various licenses and permits under the authority of the 

Commissioner of Emergency Services and public protection, and suspended ce11ain requirements 

for recoupment of overpayment and hearings conducted by the Depat1ment of Social Services; and 

WHEREAS, my Executive Order No. 7F, dated March 18, 2020, ordered the closure of Large 

Shopping Malls, the closure of places of public amusement except public parks and open recreation 

areas, expanded Medicaid telehealth coverage, waived in-person service, hearing, and screening 

requirements for certain Probate Court proceedings in vulnerable group care settings, and clarified 

my order cancelling school classes; and 

WHEREAS, my Executive Order No. 7G, dated March 19, 2020, ordered the postponement of 

the presidential primmy, suspended non-critical com1 operations, expanded the availability of 

telehealth services, and enacted additional public health measures; and 

WHEREAS, my Executive Order No. 7H, dated March 20, 2020, limited the workplace 

operations of non-essential businesses, and on-profit, created a process to designate those that are 

essential, and provided for consistency across the state in governmental response to the COVID19 pandemic; and 

WHEREAS, my Executive Order No. 71, dated March 21, 2020, among other things, granted 

various forms of financial relief to recipients of public health and economic assistance, enacted 

measures to protect the health of children in the care of the Depat1ment of Children and Families, 

and enacted a series of measures to allow municipalities and their administrative bodies to conduct 

essential business while reducing the risk of COVID-19 transmission; and 

WHEREAS, COVID-19 is a respirato1y disease that spreads easily from person to person and 

may result in serious illness or death; and 

WHEREAS, the World Health Organization has declared the COVID-19 outbreak a pandemic; 

and 

WHEREAS, the risk of severe illness and death from COVID-19 appears to be higher for 

individuals who are 60 years of age or older and for those who have chronic health conditions; and 

WHEREAS, to reduce spread ofCOVID-19, the United States Centers for Disease Control and 

Prevention and the Connecticut Depat1ment of Public Health recommend implementation of 

community mitigation strategies to increase containment of the virus and to slow transmission of 

the virus, including cancellation of gatherings of fifty people or more and social distancing in 

smaller gatherings; and 

WHEREAS, if COVID-10 is transmitted to an elderly person, there is a high risk of serious illness 

or m011ality; and 

WHEREAS, the availability of methadone for ongoing medication assisted treatment is critical 

for the treatment of patients by Methadone Maintenance Clinics; 
WHEREAS the delive1y of methadone take-home doses will allow for patients that are unable to 

travel to the facility an opp01iunity to receive their medication in their home and decrease the risk 

of transmission of COVID-19; and 

WHEREAS, it is critical that fire service personnel in the midst of certification testing are able to 

to meet contractual, bylaw, and probationary requirements as mandated by their employers, and 

are able to perform their vital public safety role throughout this state of emergency; and 

WHEREAS, Governor Rell's Executive Order No. 27, adopted and extended by Governor 

Malloy's Executive Order No. 3, restricts the rehiring of Temporary Worker Retirees (TWRs) to 

two calendar years; and 

WHEREAS, Public Acts 3-01 and 03-2 prohibit the rehiring of any state employee who 

participated in the Early Retirement Incentive Program offered in 2003; and 

WHEREAS, the COVID-19 pandemic has created staffing disruptions in state agencies and has 

also increased the need for services provided by state agencies, resulting in critical skills sho1iages 

in ce1iain areas, including those related to healthcare and public safety; and 

WHEREAS, people who have retired from state service already possess the requisite knowledge, 

experience and/or licenses and are willing to return to work on a tempora1y basis can help agencies 

mitigate the such staffing shortages; and 

WHEREAS, during the current public health crisis, accommodations for safe and effective 

operations of state agencies and state employees and the clients of these agencies are rapidly 

changing and evolving; and 

WHEREAS, during the current public health crisis, additional accommodations and facilities 

beyond what is currently available in Connecticut may be necessaiy to address the effects of 

COVID-19, including but not limited to housing, health care, and medical treatment; and 

WHEREAS, it is imperative to the health and safety of the general public that the State of 

Connecticut is able to adapt to the current crisis on an emergency basis, and provide essential 

human services for the duration of this emergency; and 

WHEREAS, it is critical to the protection of the public health and safety that the Department of 

Administrative Services and the agencies for which it provides real estate services be able to 

respond to these emergency circumstances as expeditiously as possible; and 

WHEREAS, in order to effectively respond to and alleviate the effects of the emergency, ce1iain 

statutorily mandated procedures for the leasing, assignment and use of real estate for state agencies, 

employees and the general public should be condensed and streamlined, to enable the State to enter 

into leases relating to emergency needs created by the COVID-19 crisis; and 

WHEREAS, effective utilization of leased real estate may require the State to make ce1iain minor 

capital improvements, or acquire furniture, fixtures and equipment; and 
WHEREAS, non-essential retailers provide useful and necessaty products and employ tens of 

thousands of people throughout the state, and with proper precautions, may be able to conduct 

limited operations without increasing the risk of transmission of COVID-19; and 

WHEREAS, it is critical to the safety and recovery of non-essential businesses and nonprofit 

organizations that their buildings and grounds remain secure and in good working order and 

continue to receive and process mail and packages; and 

WHEREAS, upon a proclamation that a civil preparedness emergency exists, section 28-9(b) of 

the Connecticut General Statutes authorizes the modification or suspension in whole or in part by 

executive order of any statute or regulation or requirement or part thereof that conflicts with the 

efficient and expeditious execution of civil preparedness functions or the protection of public 

health; 

NOW, THEREFORE, I, NED LAMONT, Governor of the State of Connecticut, by virtue of the 

authority vested in me by the Constitution and the laws of the State of Connecticut, do hereby 

ORDER AND DIRECT: 

1. Clarification of Executive Order No. 7H Regarding Non-Essential Business 

Operations. Executive Order No. 7H, dated March 20, 2020 is hereby amended 

to permit 1) non-essential retailers to be staffed on site, provided that they may 

only offer remote ordering (e.g. phone, internet, mail, dropbox) and delive1y or 

curb-side pick-up, and 2) non-essential businesses and nonprofits to allow staff 

or third patties on site to the minimum extent necessary to provide security, 

maintenance, and receipt of mail and packages, or other services deemed 

essential in implementing guidance issued by the Department of Economic and 

Community Development. 

2. Extension of Time Period for Fire Service Personnel Examinations. 

Section 7-3231-lSa (d) (!)of the Regulations of Connecticut State Agencies is 

modified to authorize the Commissioner of Emergency Services and Public 

Protection to extend the time by which examination components for a given 

level of certification for fire-service personnel must be completed, by 90 days, 

provided that he is authorized, in his sole discretion, to revoke such extensions 

as he deems necessmy to protect public safety, and to fmther extend such 

timeline as he deems necessary. 

3. Delivery of Methadone to Homebound Patients by Methadone 

Maintenance Clinics. Section 21a-252 of the Connecticut General Statutes is 

modified to permit the delivery of take-home doses of methadone for the 

treatment of drug dependent patients who are determined to be unable to travel 

to the treatment facility due to COVID-19 or related concerns. The 

Commissioner of Consumer Protection may issue any implementing orders or 

guidance that she deems necessa1y to implement this order. 
4. Suspension of Rehiring Procedures and Restrictions on Temporary 

Worker Retirees (TWR). In order to enable agencies to meet critical staffing 

needs caused by COVID-19 with skilled and experienced employees who 

require little to no additional training, Gov. Rell's Executive Order No. 37, Gov. 

Malloy's Executive Order No. 3, Section 6(b)(F) of Public Act 03-01 and 

Section 6(b)(G) of Public Act 03-02 are suspended to remove the two-year 

limitation TWRs and to authorize rehiring employees who participated in 

retirement incentive programs. Agencies shall expedite review and approval of 

any related extension or hiring requests. 

5. Modification of Real Property Statutes to Facilitate Leasing, Repairs, 

Alterations and Use of Real Property to Address the COVID-19 

Emergency. In accordance with the provisions of Section 28-9(b )(I) of the 

Connecticut General Statutes, the following statutes are modified as set forth 

herein to authorize the Secretmy of the Office of Policy and Management or her 

designee, or the Commissioner of Administrative Services, as applicable, to 

take any action they deem necessmy to expedite the leasing or use of real 

property by the State of Connecticut to respond to the COVID-19 emergency: 

a. subsections (a), (k) and (o) of Section 4b-23 of the Connecticut General 

Statutes, which require agencies to submit requests for space for approval 

by the Secretary of the Office of Policy and Management; to obtain 

approval for any space that was not included in the state facilities plan, and 

require the approval of the Secretmy of the Office of Policy and 

Management of all leases, lease renewals and holdover agreements 

proposed by the Commissioner of the Department of Administrative 

Services; 

b. subsections (3) and (4) of Section 4-67g(f) of the Connecticut General 

Statutes, which requires the approval of the Secretmy of the Office of 

Policy and Management prior to any use of state real property by an entity 

other than a state agency, or use of state real prope1ty by a state agency 

other than the state agency with custody and control over such state real 

prope1ty; 

c. subsection (f) of section 4b-3 of the Connecticut General Statutes, as to that 

pmtion of the statute that requires the approval of the State Properties 

Review Board of real estate acquisitions, sales, leases and subleases 

proposed by the Commissioner of Administrative Services; 

d. section 4b-29 of the Connecticut General Statutes, only as to that portion 

of the statute that requires the approval of the State Prope1ties Review 

Board for the Commissioner of Administrative Services to order the 

assignment and removal of state agencies to and from real estate available 
to the state, through ownership or lease, when he deems it necessaiy to 

provide space, facilities and necessaiy accommodations to meet the needs 

of any of such agencies and when such assigrunent or removal will be in 

the best interests of the state; 

e. section 4b-33 of the Co1111ecticut General Statutes in its entirety, which 

requires any person, firm, partnership, association, corporation or other 

entity, seeking to enter into a lease or lease-purchase agreement with the 

state through the Commissioner of Administrative Services to file a sworn 

statement with said Commissioner disclosing the names of any persons 

having a financial interest in the property or premises involved, and which 

provides that failure to make such disclosure is punishable by a civil 

penalty; 

f. section 4b-34 of the Connecticut General Statutes in its entirety, which 

mandates adve1iising for leased space and notification to the Connecticut 

Association of Realtors of requirements for leased space by executive 

branch agencies; 

6. State Contracting Statutes Modified to Facilitate Leasing, Repairs, 

Alterations and Use of Real Property to Address the COVID-19 

Emergency. In accordance with the provisions of Section 28-9(b )(!) of the 

Co1111ecticut General Statutes, the following statutes are modified as set forth 

herein to authorize the Secretaiy of the Office of Policy and Management or her 

designee, or the Commissioner of Administrative Services, as applicable, to 

take any action they deem necessaiy to expedite the state-wide property 

transfers, assigrunents of space and leasing or use of real property by the State 

of Co1111ecticut to respond to the COVID-19 emergency: 

a. sections 4-252 and 9-612(f)(2)(E) of the Co1111ecticut General Statutes 

and Governor Malloy's Executive Order 49, which require disclosure of 

certain gifts and campaign contributions by state contractors and 

prospective state contractors for state contracts over $50,000; 

b. section 4e-70 of the Connecticut General Statutes, which requires state 

contractors to comply with certain confidentiality requirements; 

c. sections 4e-29 and 4e-30 of the Connecticut General Statutes, which 

require state contractors to permit certain audit and inspection activities 

by the State at the contractors' expense; 

d. section 4a-57 requiring competitive solicitations for all purchases and 

contracts for supplies, materials, equipment and contractual services, 

including, pursuant to section 4d-8, the purchasing, leasing and 
contracting for information system and telecommunication system 

facilities, equipment and services; and 

e. section 4b-91 that sets forth the process for competitive solicitation for 

public works contracts. 

7. Approval for Transactions Covered by Sections 5 and 6 of This Order. 

Department of Administrative Services shall submit all proposed real estate 

transactions subject to this order to the Deputy Secretaiy of the Office of Policy 

and Management or his/her designee for review and approval. The Deputy 

Secreta1y or his/her designee shall have one (1) calendar day to respond to any 

proposed transaction pursuant to this Order, after which it shall be deemed 

approved. 

Unless otherwise specified herein, this order shall take effect inunediately and shall remain 

in effect for the duration of the public health and civil preparedness emergency, unless 

earlier modified or terminated by me. 

Dated at Hartford, Connecticut, this 22nd day of March, 2020. 

2!::;~;~ _ Denise W. Merrill 

Secretaiy of the State 

Ned Lamont 

Governor 
Exhibit F
1

1 STATE OF MICHIGAN 

2 IN THE CIRCUIT COURT FOR THE COUNTY OF INGHAM 

3 _____________________________________ 

4 GAVRILIDES MANAGEMENT COMPANY, 

5 Plaintiff, 

6 vs. File No. 20-258-CB 

7 

8 MICHIGAN INSURANCE COMPANY, 

9 Defendant. 

10 _____________________________________/ 

11 

12 DEFENDANTS MOTION FOR SUMMARY DISPOSITION 

13 BEFORE THE HONORABLE JOYCE DRAGANCHUK, CIRCUIT COURT JUDGE 

14 LANSING, MICHIGAN – WEDNESDAY, JULY 01, 2020 

15 

16 

17 APPEARANCES: 

18 For the Plaintiff: Matthew J. Heos-P73786 

19 3452 East Lake Lansing Road 

20 East Lansing, Michigan 48823 

21 517-256-4240

22 

23 

24 For the Defendant: Henry Emrich-P29948 

25 2025 East Beltline Avenue SE-#600 

26 Grand Rapids, Michigan 49546 

27 616-285-0143

28 

29 

30 Recorded/transcribed by: Susan C. Melton, CER 7548 

31 Certified Electronic Reporter 

32 (517) 483-6500 x6703

33 

34 

35 

36 

37 

38 

39 

40 

41 

42 

43 

44 

Exhibit

F
2

1 TABLE OF CONTENTS 

2 

3 

4 WITNESSES PAGE 

5 None. 

6 

7 

8 

9 EXHIBITS 

10 None admitted. 

11 

12 

13 

14 

15 

16 

17 

18 

19 

20 

21 

22 

23 

24 

25 

26 

27 
3

1 Lansing, Michigan 

2 Wednesday, July 01, 2020 

3 2:58:57 PM 

4 THE COURT: This is, pardon me if I massacre 

5 this, Gavri--, Gavrilides Management Company, et al versus 

6 Michigan Insurance Company, docket number 20-258-CB. And 

7 this is the time set for Defendant Michigan Insurance 

8 Company’s Motion for Summary Disposition. And just for the 

9 record, could I have your appearances, please? 

10 MR. HEOS: Yes, your Honor. Matthew Heos and Nick 

11 Gavrilides is here in the courtroom also with me. He is 

12 the owner of the immediate plaintiff company’s. 

13 MR EMRICH: Henry Emrich on behalf of Michigan 

14 Insurance Company, your Honor and my assistant Chenney 

15 Ward. 

16 THE COURT: Okay, thank you. And your motion, Mr. 

17 Emrich, if you wish to go ahead. 

18 MR. EMRICH: Thank you, your Honor. I am going to 

19 assume that the Court has read all of the pleadings in 

20 this case, so I’ll try not to belabor some of the points. 

21 I think the, the key fact that we need to focus on is that 

22 as we’ve argued is that there’s no question here but the 

23 policies that insure Mr. Gavrilides properties against, 

24 against direct physical loss or damage to the property and 

25 contrary, any claim with the policy benefits in question 
4

1 this business income coverage is illusory, the policy in 

2 question here clearly provides that for the business 

3 coverage, the business income coverage to apply and, and 

4 most of the other primary coverages under their policy, 

5 there must be a direct physical loss of or damage to the 

6 insured property in order for it to apply. 

7 And I think it’s important as we’ll discuss 

8 later in our argument depending on what Mr. Heos has to 

9 say, why this is important, we must focus on the fact that 

10 there must be direct physical loss or damage to the 

11 insured property and not direct physical loss of use of or 

12 damage to the property as has been suggested by Mr. 

13 Gavrilides and his attorney in order for the coverage at 

14 issue to apply. 

15 While I acknowledge, your Honor, that this is a 

16 somewhat unique, extraordinary if you will, matter to be 

17 filing at this point in the proceedings as our initial 

18 pleading; I think it’s important to understand that when 

19 we look at Mr. Gavrilides complaint, it does not contain 

20 one single allegation that this insured property has in 

21 any way been damaged or lost. To the contrary, the 

22 allegations in the complaint affirmatively allege that the 

23 plaintiff business interruption claim is based on the 

24 “Stay at Home” orders of Governor Whitmer. There is no 

25 allegation of any kind that the property in question has 
5

1 in any way been damaged, lost or anything of the sort. 

2 Given that this motion has been brought under 

3 2.116(c)(10), plaintiff must produce some evidence to 

4 contradict the uncontroverted facts that have been alleged 

5 not only in the complaint, but in the affidavit submitted 

6 Mr. Gavrilides and in any of the other materials that Mr. 

7 Heos has attached to his response as, as indicated, most 

8 importantly, the affidavit of Mr. Gavrilides that 

9 reiterates the admissions in the complaint that there has 

10 not been any loss of or damage to either of the properties 

11 for which they seek coverage. 

12 The insureds property today exists in the very 

13 same condition as it existed the day prior to the 

14 effective date of the “Stay at Home” order. They have not 

15 been lost, they have not been damaged, they have not 

16 required any repairs because of any damage to those 

17 properties. The business operation, its, its operation as 

18 a restaurant today is, is the same as the day prior to the 

19 effective date of the order, albeit with some modifi20 cations that had been required to avoid grouping and to 

21 maintain social distancing in, in a sense improvements to 

22 the real estate. Not repairs, you know, and, and it’s 

23 been maintained as a take-out, take-out operation at least 

24 until recently when they resumed the dining operation. 

25 There has been no loss of or damage to either building 
6

1 that has prevented the plaintiff from operating as a 

2 restaurant or entering it for that matter if--, as they 

3 have. If plaintiffs wanted to sell either building today, 

4 they could do so. And while plaintiffs have provided some 

5 speculative evidence about the decreased value of that 

6 property, although, as I read Mr.--, as I read the 

7 materials that Mr. Heos kindly attached to his response, 

8 the fact of the matter is it pointed out in that article 

9 was that while they operation of a commercial property may 

10 get harder, it’s not impossible to operate it in the 

11 future under our new normal. 

12 Because plaintiffs complaint, the affidavit, the 

13 other information that has been provided to your Honor 

14 provides no evidence of any damage to that property. 

15 Plaintiffs could never prove that either property suffered 

16 any direct physical loss from the imposition of Governor 

17 Whitmer’s emergency order. And thus, could never recover 

18 business interruption coverage under this policy based on 

19 the facts that have been presented to the Court. The same 

20 holds true under the business cover, income coverage, if a 

21 civil authority prevents or prohibits access to either 

22 property because of direct physical damage to an adjacent 

23 or nearby property for the very same reason. There has 

24 been no direct physical loss or damage to any adjacent 

25 property that has been alleged, that has been provided to 
7

1 the Court in Mr. Heos response. And frankly, when you look 

2 at the order that they have, that is at issue in this 

3 case, there’s nothing there that prevents access to Mr. 

4 Gavrilides properties whatsoever. 

5 In summary, your Honor, there are no facts 

6 alleged in the complaint or in any of the materials that 

7 I’ve looked at, including Mr. Gavrilides affidavit, that 

8 shows there has been direct physical loss of or damage to 

9 the insured property. And for those reasons, your Honor, 

10 we believe that our motion--, for those reasons alone, we 

11 believe our motion for summary disposition should be 

12 granted. 

13 I’d just like to make a couple of additional 

14 points before I shut up. I really believe summary 

15 disposition is warranted on this basis alone and I would 

16 turn the Court to the case that we’ve discussed in our, in 

17 our brief, your Honor, that’s referred to Universal 

18 Insurance Production versus Chubb. And that’s the decision 

19 of the Eastern District of Michigan involving a claim that 

20 involved insured property. It was damaged by a pervasive 

21 odor that developed in the property as a result of mold 

22 that grew in the property because of some water seepage. 

23 And why that case is important is because it discusses the 

24 Michigan Rules of Contract Interpretation, that still 

25 apply today, policy language is clear and unambiguous on 
8

1 its face, which we believe is clearly the case here that 

2 states that the words and the terms of the policy should 

3 be enforced utilizing plain and commonly understood 

4 meanings. 

5 And when I said earlier that that’s important 

6 when we talk about what direct physical loss of or damage 

7 to property means, it means we look at those words. We 

8 don’t add words such as loss of use, that Mr. Heos and Mr. 

9 Gavrilides have added in order to understand what we’re 

10 talking about here. We look at the language in the policy. 

11 Every case that Mr. Heos produced your Honor, says the 

12 very same thing. In Univer--, Universal, like here, the 

13 policy was an ‘all-risk’ policy that required, like here, 

14 direct physical loss or damage to the insured property in 

15 order to trigger coverage unless that coverage was 

16 excluded. 

17 As Universal pointed out, applying a dictionary 

18 meaning of direct and physical as meaning something 

19 immediate or proximate as a premise to something that is 

20 distant or incidental and physical meaning something that 

21 has a material existence meant in the context of a loss 

22 involving a contaminant that, unlike here, per the uncon23 troverted allegations of the complaint and other evidence 

24 produced by plaintiff in response to this motion. That in 

25 order for direct physical loss of the property in this 
9

1 context, the contaminant must actually alter the structure 

2 integrity of the property in order to trigger coverage 

3 under language that is at issue in this case. And it 

4 didn’t happen in Universal, as the Court denied coverage 

5 there, granted affirmed summary disposition. And 

6 importantly your Honor, it hasn’t even been alleged in 

7 this case. Regardless of any authority to the contrary, 

8 anywhere else in the country, this remains the law in our 

9 courts when interpreting policy terms at issue. There is a 

10 requirement that there be direct physical loss of or 

11 damage to property. And the allegations produced here in 

12 the complaint and the evidence that’s been attached have 

13 specifically acknowledged no such contamination and no 

14 such damage to the property as a result of that contami15 nation. 

16 As in Universal, your Honor, the mere presence 

17 of odor or even mold was not any evidence of structural or 

18 tangible damage to the insured property. And as such, no 

19 direct physical loss or damage to the property had-, was 

20 occurred. Here, your Honor, we have the very same thing 

21 except that we have not even had any allegations of any 

22 damage to the property caused by this unfortunate, this 

23 horrible virus. 

24 Finally, and although we do not believe the 

25 Court even has to get to this point, even if we assume for 
10

1 purposes of this motion that contamination occurred on 

2 each premises and that somehow effected the structural 

3 integrity of either building, again, neither scenario is 

4 alleged. And even if it were, we do not believe under the 

5 circumstances and the science that exists that it would 

6 necessarily constitute direct physical loss over damage to 

7 the property. The buyer’s exclusion of the policy, which 

8 clearly and unequivocally states that it applies to all 

9 coverages and endorsement and that the company will not 

10 pay for loss or damages caused by or resulting from any 

11 virus, bacteria or other microorganism that induces or is, 

12 is capable of inducing physical distress, illness or 

13 disease. And Lord knows, that that has certainly been the 

14 case with what’s happened with Covid-19 throughout our 

15 country. 

16 Clearly, your Honor, that exclusion, again, I 

17 don’t believe you even have to get there, but that 

18 exclusion would clearly exclude any claim here even if 

19 plaintiff’s could prove direct physical loss of or damage 

20 to the insured property or any nearby property that 

21 resulted in a civil authority issuing an order prohibiting 

22 access to the property. As of eight days ago, your Honor, 

23 they have only been few jurisdictions in this country, 

24 Florida and Pennsylvania, that have discussed and applied 

25 this, a similar exclusion as at issue in this case and in 
11

1 every one of those cases, the Court has enforced that 

2 exclusion as written because it’s clear and unambiguous. 

3 Again, your Honor, for all the reasons that we’ve set 

4 forth here today and the brief that we filed and our 

5 reply, we request that the Court grant our Motion for 

6 Summary Disposition at this time. Thank you. 

7 THE COURT: Thank you. Mr. Heos? 

8 MR. HEOS: Thank you, your Honor and may it 

9 please the Court. And obviously Mr. Emrich and I have a 

10 different interpretation of direct physical loss of or 

11 damage to covered properties because here the loss comes 

12 from the issue of the executive order restricting use of 

13 property. Physically you cannot use for, for dine-in 

14 services any of the interior of the building for a period 

15 of time. And a complete prohibition isn’t contemplated by 

16 the language of the contract, I think a limited 

17 restriction also falls within the coverage. And I think 

18 that if you’re gonna accept the defendants argument you 

19 would have to limit the meaning to destruction of the 

20 physical building itself, but we know that the coverage 

21 extends to non-destructive loss, civil authority being 

22 one. 

23 I put in example in the brief subterranean 

24 pollution, you can look at asbestos or a computer virus is 

25 something that would occur that there would be no physical 
12

1 destruction to the property itself. The fact of the matter 

2 is that Mr. Gavrilides can’t use the covered properties 

3 because of or he’s lost rather the use of those properties 

4 because of the order and it looks like that will continue 

5 in some form for a while. So, I think that counsel is 

6 wrong in trying to limit the scope even with the case law 

7 he cited, most of which is persuasive and not binding. 

8 That’s number one, Judge. 

9 And as for the virus exclusion itself, the only 

10 case law we have relates to person to person transmission 

11 of a virus at the covered property. And I think that fits 

12 more with what’s going on. We see in the news that Harpers 

13 in East Lansing and even the Hotcat in Kalamazoo is making 

14 headlines of people contracting Covid there. But, the 

15 impetus of the order was to protect public health and 

16 welfare, which is the governor’s duty. It’s not caused by 

17 a virus. It would be the same order as with the damn in 

18 Midland being issued to protect public health and welfare. 

19 It wasn’t caused by a flood. It was caused by the 

20 Governor’s duty to act and protect the people she’s 

21 charged with protecting and I think that’s what happening. 

22 Or it’s distinguishable from the case and I 

23 think it’s Bowler, the case cited regarding the virus. And 

24 I think that if you go further in accepting defendant’s 

25 position, then we get into the illusory promise of well if 
13

1 the government issues an order, we’re not gonna cover it 

2 because any decision of a government body or group of 

3 people is excluded. And so then, you get into the circle 

4 in the contract where if you’re going to buy into counsels 

5 logic, it would make that provision illusory. And for 

6 those reasons, I think that the motion should actually 

7 roll back on the defendants because the language to 

8 support the claim, to the extent that the Court thinks 

9 there’s a deficiency in my pleading and is gonna grant 

10 defendants motion, I’d like Leave to Amend the Complaint. 

11 But, I don’t think that’s the case here. And with that, 

12 I’ll leave it, if the Court would like to ask any 

13 questions, I’m happy to take them. 

14 THE COURT: I don’t have any. Thank you. I’ll 

15 give Mr. Emrich rebuttal time. 

16 MR. EMRICH: Thank you, your Honor. Your Honor, 

17 what I would say is that when we talk about these cases 

18 that Mr. Heos has mentioned that might provide coverage in 

19 certain situations, I read those cases a little while ago 

20 and I’m kind of tired reading some of these cases about 

21 insurance coverage. But, the point in every one of those 

22 cases is that the condition she referred to actually 

23 caused damage to the property. 

24 In this case, there has not been any such 

25 damage. And if we look at what the coverage for business 
14

1 loss or business--, the business income loss that they’re 

2 seeking says, it says that if the business, the coverage 

3 would apply if the business operation is suspended 

4 provided the suspension must be caused by the direct 

5 physical loss of or damage to property. In this case, that 

6 hasn’t occurred. Nothing prevents Mr. Gavrilides from 

7 using that property. It has been used as such. The fact 

8 that there may be other coverages that may provide some 

9 limited coverage, they’re against what Mr. Heos is arguing 

10 because clearly, if those coverages were covered under 

11 this language, then why have a special coverage that 

12 provides certain conditions for its application. 

13 The point is, in each of those civil authority 

14 cases that he talked about, the property actually 

15 sustained damage. Here it didn’t sustain damage. As to his 

16 claim in this case, that he wants an opportunity to amend 

17 his complaint if the Court feels compelled to grant my 

18 motion, what is that going to accomplish? He’s already 

19 alleged in his complaint and his client has already signed 

20 an affidavit where he no doubt put his hand up and swore 

21 to the contents of that affidavit in which he said there 

22 has been no damage to that property. 

23 We don’t create coverage by-, because somebody 

24 thinks they ought to have coverage. But, that, that, that 

25 whole line of cases Roy versus Continental Insurance and 
15

1 some of the other cases in our, in our brief that we 

2 cited, clearly supports the notion that the reasonable 

3 expectation concept doesn’t apply in Michigan. It just 

4 doesn’t cut it. There is no coverage here, your Honor. 

5 That exclusion is clear. If the Court feels that there may 

6 be or that there may be a situation that would give rise 

7 to, but again, you have to come forward at the time that 

8 you, that you respond to this motion with some evidence 

9 that suggests that. That hasn’t happened here. I mean even 

10 when you look at the response that he’s filed, he talks 

11 about scenario’s that have absolutely no bearing to this 

12 case. 

13 And you know, I’ll just make one last point, 

14 your Honor, you know, when I was a young Prosecutor, I had 

15 the benefit of being able to argue a number of cases to 

16 juries that required me to prove the defendant’s guilt 

17 beyond a reasonable doubt. And in those cases, I was 

18 trained to listen closely to the defendant’s argument and 

19 had been the case where the facts were particularly 

20 egregious, a defense attorney would often not even talk 

21 about those facts and talk about the law. And he talked 

22 about how that law was somehow created this reasonable 

23 doubt in hopes of creating some confusion on the part of 

24 one juror who might then find in his clients favor because 

25 reasonable doubt existed. And, and in those cases, I would 
16

1 make sure that when I got up in rebuttal, just as I have 

2 been given the opportunity to here, I would point that out 

3 to the jury and indicate to them that there’s a reason for 

4 that. And that’s because they didn’t want you to talk 

5 about the facts that clearly supported conviction. 

6 On the other hand, if it was a case where the 

7 law, you know, or the facts may have been murky, but the 

8 law was clear, the defense attorney would only focus on, 

9 you know, on those facts and not talk about the law. And 

10 again, I point that out to the jury there. But, in this 

11 case, you know, and there were cases back then to, like 

12 our case here that were neither supported by the facts or 

13 the law. Which I believe is clearly the case in this case. 

14 And the defense attorney would get up and argue something 

15 that to the jury that had absolutely nothing to do with 

16 the case in hopes of confusing them. Just like Mr. Heos 

17 has suggested by talking about these asbestos cases or 

18 some of these other cases that have nothing to do with 

19 this. 

20 Well in this case, when you look at his 

21 responsive pleading, he talks about an accident situation 

22 that has absolutely no application here. Nothing to do 

23 with this case. While in his argument, he starts out 

24 talking about a discussion of the virus of racism and as 

25 there, as there, we would point out, if we were in front 
17

1 of a jury, just like I’d point out to them and I’m 

2 pointing out to you, it hasn’t got anything to do with 

3 this case. Your Honor, the reason for that and the reason 

4 for the topic of that is that he knows that neither the 

5 facts or the law support his claim and nothing he could 

6 file as an amendment would change that. 

7 He is hoping to somehow create this little bit 

8 of possibility, some scintilla that some evidence is gonna 

9 pop up that shows that the property has been damaged in 

10 hopes that he could trigger coverage. And as this Court 

11 knows under the cases we’ve discussed in our brief, that 

12 is not sufficient to deny summary disposition in a case 

13 that clearly warrants it even at this early stage. 

14 Thank you your Honor for your patience. Thank 

15 you Mr. Heos, we’ve never met. I’ve heard a lot of good 

16 things about you. Mr. Gavrilides, nice to have met you, 

17 very sorry for the situation you’re in. It’s just crazy 

18 all the way around. And just like having to argue this 

19 case on TV is really just disconcerting for me. But, in 

20 any event, thank you your Honor for your patience. 

21 THE COURT: Thank you. You’re on Youtube not TV. 

22 But-- 

23 MR. EMRICH: I meant screen. Yeah, whatever. 

24 THE COURT: Right. 

25 MR. EMRICH: The screen. 
18

1 THE COURT: I, I did read the briefs. I studied 

2 them very carefully and I’ve listened to the argument of 

3 counsel today. And taking all the-, that together I, I 

4 note that the plaintiff speaks of and focuses on arguments 

5 about access to the property, use of the property and 

6 definitions of loss and damage. But, the first inquiry has 

7 to start with a full look, not just isolating some words 

8 or phrases from the policy. But, a full look at the 

9 coverage that’s provided under the policy. 

10 Coverage is provided for actual loss of business 

11 income sustained during a suspension of operations. The 

12 policy goes on to provide the ‘suspension must be caused 

13 by direct physical loss of or damage to property.’ And it 

14 also provides ‘the loss or damage must be caused by or 

15 result from a covered cause of loss. The causes of loss 

16 special form provides that a covered cause of loss means 

17 risks of direct physical loss.’ 

18 So, whether we’re talking about the cause for 

19 the suspension of the business or the cause for the loss 

20 or the damage, it is clear from the policy coverage 

21 provision only direct physical loss is covered. Under 

22 their common meanings and under federal case law as well, 

23 that the plaintiff has cited that interprets this standard 

24 form of insurance, direct physical loss of or damage to 

25 the property has to be something with material existence. 
19

1 Something that is tangible. Something according to the one 

2 case that the plaintiff has cited from the Eastern 

3 District, that alters the physical integrity of the 

4 property. The complaint here does not allege any physical 

5 loss of or damage to the property. The complaint alleges a 

6 loss of business due to executive orders shutting down the 

7 restaurants for dining, for dining in the restaurant due 

8 to the Covid-19 threat. 

9 But, the complaint also states that a no time 

10 has Covid-19 entered the Soup Spoon or the Bistro through 

11 any employee or customer and in fact, states that it has 

12 never been present in either location. So, there simply 

13 are no allegations of direct physical loss of or damage to 

14 either property. The plaintiff seems to make in the 

15 briefing, at least, two arguments about the language in 

16 the coverage provision and what it means. 

17 The first argument is that the plaintiff says 

18 coverage applies to “direct physical loss or damage to 

19 property.” Even if that were the wording of the coverage 

20 provision, it wouldn’t save the plaintiff from the 

21 requirement that the loss or damage must be physical and 

22 the analysis could end right there. But, I have to go on 

23 to say that this is not even the wording of the coverage 

24 provision. Coverage according to the policy applies to a 

25 suspension caused by “direct physical loss of or damage to 
20

1 property.” So, I’m not going to get into a detailed 

2 analysis of the rules of grammar. But, common rules of 

3 grammar would apply to make that phrase a short-cut way of 

4 saying “direct physical loss of property or direct 

5 physical damage to property.” So, again, the plaintiff 

6 just can't avoid the requirement that there has to be 

7 something that physically alters the integrity of the 

8 property. There has to be some tangible, i.e., physical 

9 damage to the property. 

10 Then the plaintiff in the briefing, at least, 

11 seems to make a second argument that and this is not 100% 

12 clear, but, it seems like the plaintiff is saying that the 

13 physical requirement is met because people were physically 

14 restricted from dine-in services. But, that argument is 

15 just simply nonsense. And it comes nowhere close to 

16 meeting the requirement that there’s some, there has to be 

17 some physical alteration to or physical damage or tangible 

18 damage to the integrity of the building. 

19 So, the next argument that the plaintiff makes 

20 is that the virus and bacteria exclusion is vague and 

21 can’t apply here. The plaintiff has not adequately 

22 explained how the term virus is vague. And in fact, 

23 supplies a completely workable, understandable, usable 

24 definition of the word virus. The argument in this regard 

25 really seems to be more that the virus exclusion doesn’t 
21

1 apply. And it goes something like this as far as I can 

2 tell, first, a virus can’t cause physical loss or damage 

3 to property because virus’ harm people, not property. 

4 Second, the damage caused here was really caused by 

5 actions of the civil authority to protect public health. 

6 And then third, therefore, coverage for acts of any 

7 person, group, organization or governmental body applies. 

8 But, that argument bring us right back to the direct 

9 physical loss or damage requirement. Again, going back to 

10 the cause of loss special form B, as in boy, exclusions 

11 provides that acts of government are only covered when 

12 they result in a covered cause of loss. A covered cause 

13 of loss, again, is direct physical loss. So, even if the 

14 virus exclusion did not apply, which the plaintiff has not 

15 supported that it doesn’t apply, I only argue that it’s 

16 vague, which I reject. But, even if it did not apply, it 

17 could only be coverage for governmental actions that 

18 resulted in direct physical loss or damage. 

19 And then, finally, the plaintiff argues that the 

20 policy has a contradiction in it that renders it illusory. 

21 So, the plaintiff says that the policy extends coverage 

22 for governmental acts. But, then, it takes it away in the 

23 causes of loss special form. But, that’s simply not true. 

24 Coverage is provided for actual loss of business income 

25 sustained during the suspension of operations. However, 
22

1 according to the coverage provision, the suspension must 

2 be caused by direct physical loss of or damage to 

3 property. And governmental acts are likewise covered if 

4 it results in a covered cause of loss, which is again, a 

5 direct physical loss. There is no granting of coverage 

6 and then excluding the same coverage in the policy. As a 

7 matter of fact, the policy is consistent throughout and 

8 consistent with federal law cited by the plaintiff. It 

9 requires physical loss or damage. 

10 There is a virus exclusion even if plaintiff was 

11 alleging, was alleging, even if there were allegations in 

12 the complaint alleging actual physical loss or damage, 

13 which the complaint does not do. But, there is a virus 

14 exclusion that would also apply. And governmental action 

15 that results in direct physical loss is covered. But 

16 again, there is no direct physical loss alleged here. 

17 Now, I have to address a little bit this, that 

18 it was brought as a (c)(10) motion. The actually the 

19 defendant hasn’t provided any support by way of factual 

20 support, depositions, affidavits, et cetera, for a (c)(10) 

21 motion. So, if the defendant doesn’t do that, then the 

22 plaintiff has no burden under Maiden versus Rosewood. So, 

23 there’s no shifting burden until the moving party first 

24 does it. But, I don’t think it properly is labeled a 

25 (c)(10) motion. I think it’s a (c)(8) motion. Because this 
23

1 is the motion that can be decided as a matter of law. Take 

2 all the allegations in the complaint as true and examine 

3 nothing more than the contract upon which the complaint is 

4 based, the policy of insurance and as a matter of law, the 

5 plaintiffs complaint cannot be sustained. And although the 

6 plaintiff has requested a chance to amend without any 

7 indication of how they would do that, there actually is no 

8 factual development that could change the fact that the 

9 complaint is complaining about the loss of access or use 

10 of the premised due to executive orders and the Covid-19 

11 virus crisis. So, there’s no factual development that 

12 could possibly change that or amendment to the complaint 

13 that could possibly change that those things do not 

14 constitute the direct physical damage or injury that’s 

15 required under the policy as I’ve outlined. 

16 So, for those reasons, I am granting the 

17 Defendant’s Motion for Summary Disposition. I’m doing it 

18 under MCR 2.116 (c)(8). And Mr.— 

19 MR. EMRICH: Thank you, your Honor. 

20 THE COURT: Mr. Emrich, will you submit an order? 

21 MR. EMRICH: Certainly will, your Honor. 

22 THE COURT: Okay. 

23 MR. EMRICH: Thank you. 

24 THE COURT: Thank you. 

25 MR. HEOS: Thank you very much. 
24

1 THE COURT: That will conclude our hearing. 

2 (Hearing concludes at 3:32:35 PM.) 

3 

4 

5 

6 

7 

8 

9 

10 STATE OF MICHIGAN) 

11 ) 

12 COUNTY OF INGHAM) 

13 

14 

15 

16 I certify that that this transcript, consisting of 24 

17 pages, is a complete, true, and correct transcript of the 

18 proceedings and testimony taken in this case on Wednesday, 

19 July 01, 2020. 

20 

21 

22 July 09, 2020 ___________________________ 

23 Susan C. Melton-CER 7548 

24 30th Circuit Court 

25 313 West Kalamazoo Avenue 

26 Lansing, Michigan 48901 

27 517-483-6500 ext. 6703 

28 
Exhibit G
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 SOUTHERN DISTRICT REPORTERS, P.C.

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k5e2SocH

UNITED STATES DISTRICT COURT 

SOUTHERN DISTRICT OF NEW YORK 

------------------------------x

SOCIAL LIFE MAGAZINE, INC.,

 Plaintiff, New York, N.Y. 

 v. 20 Civ. 3311(VEC) 

SENTINEL INSURANCE COMPANY 

LIMITED, 

 Defendant.

------------------------------x Teleconference 

 Order to Show Cause 

 May 14, 2020 

 10:00 a.m. 

Before: 

HON. VALERIE E. CAPRONI, 

 District Judge 

APPEARANCES

GABRIEL J. FISCHBARG 

 Attorney for Plaintiff 

STEPTOE & JOHNSON, LLP 

 Attorneys for Defendant 

BY: CHARLES A. MICHAEL 

 SARAH D. GORDON 

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Exhibit

G
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 SOUTHERN DISTRICT REPORTERS, P.C.

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k5e2SocH

THE COURT: Good morning, everybody. 

Do I have a court reporter on the line? 

THE COURT REPORTER: Good morning, your Honor.

Kristen Carannante.

THE COURT: Good morning.

Okay. Do I have Mr. Fischbarg for the plaintiff?

MR. FISCHBARG: Yes, Judge. Hi.

THE COURT: Mr. Fischbarg, is anyone else on the line

for the plaintiff?

MR. FISCHBARG: Yes. The plaintiff is on a separate

phone available if you need evidence or --

THE COURT: The principal of Social Life?

MR. FISCHBARG: Yes. He is in my office, you know,

more than six feet away, and --

THE COURT: Okay.

And who do I have for the defendant? 

MR. MICHAEL: Good morning, your Honor. This is

Charles Michael, from Steptoe & Johnson, for the defendant.

With me is my partner Sarah Gordon, who was just admitted pro

hac vice, and who will be doing the presentation today.

THE COURT: Terrific. 

All right -- 

MS. GORDON: Good morning, your Honor.

THE COURT: Good morning.

Only people who are speaking need to note their

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appearances, and I have got those, Mr. Fischbarg and

Ms. Gordon. Everybody else, please mute your telephone.

Also, if you hear that sound that sounds like someone 

has dropped off the line once we get started, I need you to 

stop talking so that I can make sure that I have still got the 

court reporter and your adversary on the line. 

So, Mr. Fischbarg, this is your motion, so you get to

go first.

MR. FISCHBARG: Yes. So I submitted a reply

memorandum, you know, in the afternoon yesterday. I was just

wondering if --

THE COURT: Yes. I saw that. Thank you.

MR. FISCHBARG: Okay, so you were also able to read

it, I suppose?

THE COURT: Yes, yes.

MR. FISCHBARG: Okay.

So I guess the only other thing I want to add that's 

not in the papers, and then I don't know if your Honor has any 

issues that you want to talk about, is I mentioned that Liberty 

Mutual had this exclusion for viruses and it is also evident 

that other insurance companies have the same exclusion, 

including Travelers Insurance Company, and they filed the -- 

they actually filed a federal lawsuit for declaratory judgment 

in California, Docket No. 20 Civ. 3619, to preempt such claims, 

I guess to enforce their exclusion for viruses. So to the 

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extent that the defendant is claiming some kind of overreach by 

the plaintiff here, I don't think it is proper. There are 

several insurance companies who are capable of putting in a 

virus exclusion in their policies, and in this case there is 

none. So -- 

THE COURT: Let me ask you something. First off, I

want to start with basics. Do you agree that New York law

applies?

MR. FISCHBARG: Yes.

THE COURT: All right. So the -- is it the Roundabout

Theatre case?

MS. GORDON: Yes, your Honor.

THE COURT: First Department case?

MS. GORDON: Yes, your Honor. This is Ms. Gordon on

behalf of Sentinel.

THE COURT: Thank you.

Mr. Fischbarg, it would seem to me that the Roundabout

case is a real problem for your position.

Would you like to explain to me why it doesn't

preclude your claim?

MR. FISCHBARG: Yes. That case applies to off-site

property damage rendering the premises at issue inaccessible.

So in this case, you don't have off-site property damage. You

have on-site property damage.

THE COURT: What is the damage? There is no damage to

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your property.

MR. FISCHBARG: Well, the virus exists everywhere.

THE COURT: It damages lungs. It doesn't damage

printing presses.

MR. FISCHBARG: Right. Well, that's a different

issue, whether or not -- that's a different issue than the

Roundabout case that had to do with accessibility. Now we are

jumping to the topic of whether a virus can cause physical

damage to a printing press, as your Honor mentioned. So that's

a separate issue, and there are a lot of cases that we have

cited where this type of material, a virus, does cause physical

damage.

THE COURT: What's your best case? What do you think

is your best case under New York law?

MR. FISCHBARG: Well, the problem is, under New York

law, there isn't much law. The New Jersey federal court, in

TRAVCO, citing other cases, including from other circuits,

where physical damage had a broader interpretation that

includes loss of use and not just, you know, something where

you take a hammer and break an item.

THE COURT: With loss of use, I mean, loss of use from

things like mold is different from you not being able to,

quote, use your premises because there is a virus that is

running amuck in the community.

MR. FISCHBARG: Okay. I would disagree with that. I

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would say virus and mold are equivalent. They are both

physical items which, if they land on a surface or are on a

surface, just like spores that are also listed in the policy,

mold is also listed in the policy. I would say that the virus,

mold spores --

THE COURT: Hang on -- 

MR. FISCHBARG: -- anything -- 

THE COURT: A second.

Do I still have the court reporter? 

THE COURT REPORTER: Yes, your Honor.

THE COURT: Do I have I still have, Ms. Gordon?

MS. GORDON: Yes, your Honor.

THE COURT: All right. Go ahead.

MR. FISCHBARG: Mold spores, bacteria, virus, all

those are physical items which damage whatever they are on,

whatever they land on. And in this case, the virus, when it

lands on something and you touch it, you could die from it.

So --

THE COURT: That damages you. It doesn't damage the

property.

MR. FISCHBARG: But you are not able to use the

property because it damages you. So it's a corollary. In

other words, this policy, by the way, mentions the word "virus"

and "bacteria" in it in two places.

THE COURT: Where does it mention it?

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MR. FISCHBARG: It mentions it in the PDF as well as

Exhibit 9, page 36 and 37, which is page 7 of 25 of the special

property coverage form under additional coverages, section

5(j), where the insured would cover certain law enforcement

orders requiring you to -- requiring remediation. But it

contains an exclusion for bacteria and viruses, and it uses the

word "bacteria" and it uses the word "virus." 

So what this is really referring to is the Legionella

bacteria, which is causes Legionnaires' disease typically. 

That's the bacteria. Virus is obviously something else. So 

this is obviously referring to when there is a Legionnaires' 

outbreak in a building, which could happen in New York pretty 

often, every few years, and then the building gets shut down 

and they have to do remediation. Either they -- at least as a 

bacteria, Legionella bacteria only occurs in water or pipes or 

in mist. So the building is shut down, and then you might have 

to -- and now there is a new code where the buildings have to 

test their cooling systems for Legionella bacteria. So that's 

an example where a bacteria causes property loss, or loss of 

use, or damage, physical damage to property. And I would say 

the virus is equivalent to that bacteria. So -- 

THE COURT: But it's not. This is different. The

virus is not specifically in your property that is causing

damage. It is everywhere. The Legionnaire example is very

different. Because it's not like Legionnaire is running

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rampant throughout the city, and therefore your office building

can get closed. It is that the Legionnaire bacteria is in that

building causing -- 

MR. FISCHBARG: Yes. 

THE COURT: -- that building to be shut down.

MR. FISCHBARG: Yes. Yes.

So this virus is everywhere, including this office in 

particular, this office. In other words, they just did a 

random survey of people going into a grocery store in New York, 

and 20 percent tested positive. So, Judge, that's just a 

one-sample test. So if the infection rate in New York City is 

20 percent, then the virus is literally everywhere. So if 

it -- 

THE COURT: That's what -- 

MR. FISCHBARG: -- is -- 

THE COURT: That is what has caused the damage is that

the governor has said you need to stay home. It is not that

there is any particular damage to your specific property.

MR. FISCHBARG: Well, okay, that's --

THE COURT: You may not even have the virus in your

property.

MR. FISCHBARG: Well, okay, that's -- I would

disagree. The virus not just causes -- it lands on equipment,

it lands everywhere. That's why all of these -- all of the

health guidelines from the World Health Organization and

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elsewhere talk about wearing gloves, talk about wiping things

down, because it lands on surfaces. It doesn't just get

transmitted through the air. Another way of getting it is

through contact --

THE COURT: Right, but what -- 

MR. FISCHBARG: -- when it touches your -- 

THE COURT: What evidence do you have that your

premises are infected with the COVID bug.

MR. FISCHBARG: Well, the plaintiff is here. He got

COVID. So that's evidence there.

THE COURT: Well, it's not evidence that he got it in

his office.

MR. FISCHBARG: Yes, but, okay, it's not -- we're

not -- I don't know what burden of proof we are looking at,

whether it is beyond a reasonable doubt -- 

THE COURT: No, it's -- 

MR. FISCHBARG: -- or more likely than not, more

likely than not, he can testify where he was and more likely

than not he either got it from his office or he got it from his

home. So that's a different burden of proof. If you are

looking for some kind of burden of proof to show that he got it

from his office, I mean, that's an evidentiary question, and we

can get an epidemiologist to testify and get an expert to

testify on that, which I understand is going to happen in the

other lawsuits that have been filed across the country

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regarding --

THE COURT: Okay.

MR. FISCHBARG: -- this issue.

THE COURT: Okay.

MR. FISCHBARG: So . . .

THE COURT: Anything further, Mr. Fischbarg?

MR. FISCHBARG: No, I guess that's all for now. Thank

you.

THE COURT: Okay. Thanks.

Ms. Gordon.

MS. GORDON: Thank you, your Honor. This is Sarah

Gordon on behalf of Sentinel, and we agree with your Honor's

thoughts here. 

The property policy has two distinct requirements 

here. There has to be direct physical loss or physical damage 

to the property and the cause of the business interruption 

damages they are seeking has to be direct physical loss or 

damage, and the cause here is not physical damage. 

We think, you know, as your Honor rightly pointed out, 

Roundabout controls. It is under New York law. It's a First

Department case from 2002. There are no subsequent decisions 

that have disagreed or overturned it here in New York; and, if 

anything, it has been confirmed by this . . . 

THE COURT: Hang on. Did I lose my court reporter? 

THE COURT REPORTER: No, Judge. I'm here. 

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THE COURT: Did I lose Mr. Fischbarg?

MR. FISCHBARG: No, I'm here.

THE COURT: Okay.

MS. GORDON: This court, your Honor, in Newman Myers,

adopted the exact same rationale for a law firm that was trying

to assert damages where there were no -- business interruption

damages, where there was no physical harm to the property.

And, you know --

THE COURT: Let me interrupt you for a second.

So Judge Engelmayer in Newman went out of his way to 

talk about a case where there was a bunch of -- there was a 

rock slide which didn't actually hit the house or the premises, 

and yet they got coverage and coverage for the invasion of 

fumes. 

MS. GORDON: Yes, your Honor.

So for most of the cases, there are a number of them,

there is -- what has happened is something physically has

happened to the property that prevents people from being on the

property. So, for example, in Gregory Packaging, in New

Jersey, there was ammonia leaked out and they couldn't be on

the property, so something physically happened. You couldn't

necessarily see it or touch it, but there were fumes and it was

unsafe to be there. The same thing with Motorists, where there

was E. coli in the well. You couldn't be in that house because

you were exposed to other things that had the E. coli.

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The property has to be entirely unusable or 

uninhabitable for physical loss or damage to constitute a loss 

of use. We don't think that's the law in New York in any 

circumstance, but even in those other cases, there is nothing 

equivalent here. Mr. Fischbarg's client can go to his 

premises. There is no ammonia or mold or anything in the air 

that's not going to allow him on to the property. In fact, the 

governor's orders explicitly allow him to go to the property 

and get his mail or do routine business functions. The only 

rule is that he has to stay six feet apart from other people. 

So those cases are entirely distinguishable. 

And when a business, a property is allowed to remain 

open or people can still occupy the premises, there is no 

direct physical loss or damage. That was the case -- that's 

what the court said in Port Authority, that's what happened in 

Mama Jo's, where the restaurant was allowed to be open. The

cases where there is direct physical loss or damage, you 

literally cannot be on the premises because there is something 

there that is making it uninhabitable, and here that just isn't 

true. 

THE COURT: Okay. Mr. Fischbarg I will give you the

last word.

MR. FISCHBARG: All right. So I would disagree that

he is allowed to go to the premises. In fact, the opposite is

true. The executive order 202.8 says it requires 100 percent

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reduction. So he can't go there, and he is not allowed to go

there, and that is a separate claim. It is the civil authority

claim besides the breach of contract claim.

THE COURT: Doesn't the executive order say -- I'm

sorry, which executive order are you talking about?

MR. FISCHBARG: It is . . .

It is Exhibit 3 of the declaration, and then on page

2, "Each employer shall reduce the in-person workforce at any

work locations by 100 percent no later than March 22 at 8p.m."

And then it says --

THE COURT: Right, but that doesn't mean the boss

can't go to the work location.

MR. FISCHBARG: I would say he is -- he is an employee

and he can't go. I think it does. In my building here in New

York, there is nobody here. I'm the only one. There is no

bosses in any of the offices.

THE COURT: There is nothing about the governor's

order that prohibits a small businessperson or a big

businessperson from going into their office to pick up mail, to

water the plants, to do anything like -- 

MR. FISCHBARG: Your Honor -- 

THE COURT: -- that, including employees that are

working.

MR. FISCHBARG: Sorry.

MS. GORDON: Your Honor, this is Sarah Gordon. Oh, go

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ahead, Mr. Fischbarg.

MR. FISCHBARG: Okay. 

Again, I would disagree. I think the order is pretty 

clear that 100 percent means that you are not supposed to go to 

work, and that's what people have been doing in New York. They 

are not going into the office. And to the extent they are 

getting mail, I mean, there is work-arounds where the workers 

in the building have been leaving it downstairs for people to 

pick up, but the way it's been implemented is that 100 percent 

means no one is going to any office. 

THE COURT: You are in your office.

MR. FISCHBARG: Yeah, I'm not -- I'm considered, by

the way -- lawyers are considered essential, and if you are a

sole practitioner, you are considered essential. So I have the

exclusion, and that's why I am here, but otherwise I wouldn't

be here. So . . .

MS. GORDON: Your Honor, if I may? We submitted with

Mr. Michael's affidavit, Exhibit D, a printout from the Empire

State Development website. And on question 13, it addresses

exactly this issue. It says, "What if my business is not

essential but a person must pick up mail or perform a similar

routine function each day?" And the answer provided by the

Empire State is, "A single person attending a nonessential

closed business temporarily to perform a specific task is

permitted so long as they will not be in contact with other

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people."

THE COURT: I thought I had read that somewhere.

MS. GORDON: Yes. It is in Mr. Michael's declaration,

and I think it's ECF 18-4, page 304.

THE COURT: Okay.

MR. FISCHBARG: Right, but I think the executive order

supersedes that is what I would argue.

THE COURT: Okay.

Mr. Fischbarg, you have got to demonstrate a

probability of success on the merits. I feel bad for your

client. I feel bad for every small business that is having

difficulties during this period of time. But New York law is

clear that this kind of business interruption needs some damage

to the property to prohibit you from going. You get an A for

effort, you get a gold star for creativity, but this is just

not what's covered under these insurance policies.

So I will have a more complete order later, but your

motion for preliminary injunction is going to be denied.

Anything further for the plaintiff?

MR. FISCHBARG: I guess just a housekeeping thing. We

filed an amended complaint. Are we going to deem it served or

does it have to be re-served?

THE COURT: Has the defendant -- does the defendant

want to be reserved or will you take the amended complaint?

MR. MICHAEL: Your Honor, this is Charles Michael. 

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We have entered a notice of appearance, and so I think 

once they filed it on ECF, that service, we are happy to 

consider it served. That's fine. And he does have one 

amendment as of right. 

THE COURT: Correct.

MR. MICHAEL: That was within his right to file it.

THE COURT: Does defendant plan to move or answer?

MR. MICHAEL: Probably to move. We would have to

discuss it with our client, but I believe so. 

THE COURT: Okay. What are the parties' position on

discovery while the motion to dismiss is pending? 

MR. FISCHBARG: Well, I would say there are two

motions filed -- there is one in the Eastern District of

Pennsylvania and one in, I think, the Northern District of

Illinois -- for an MDL, multi-district litigation, involving a

lot of lawsuits combining, so I think this might be happening

in each state until that motion is decided, and I think the

briefing schedule is in June --

MS. GORDON: We -- your Honor --

MR. FISCHBARG: -- so I think -- 

MS. GORDON: Sorry, Mr. Fischbarg.

MR. FISCHBARG: So I would say that this case might be

transferred to the multi-district panel at some point.

THE COURT: Okay. So, Mr. Fischbarg, what I am

hearing you say is that you are perfectly happy to have the

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defendants not move until we find out whether or not your case

is going to get scooped up into the MDL?

MR. FISCHBARG: Yes, correct.

THE COURT: All right. I presume that the defendants

are perfectly happy to do nothing until you hear back from the

MDL.

MS. GORDON: Your Honor, I need to consult with my

client on that. I'm not sure that that's true. We don't think

these cases are appropriate for consolidation in the MDL for

many of the reasons which were evident today, given the

different states' conclusions on these laws. So I need to

consult with my client on the motion practice. We may intend

to want to move in any event.

THE COURT: Okay. Well, you could move, but if there

is a likely -- if there is some likelihood that they are going

to get scooped into the MDL, I'm not likely to decide it until

that decision is made. So it is entirely -- I guess from my

perspective I don't really care, but from your client's

perspective, they may be making a motion to dismiss that's

unnecessary. If you are right, and you may well be right, that

they are not going to MDL these kinds of cases, then all that's

happening is this is just being delayed into the summer for you

to incur fees making a motion to dismiss.

So why don't you talk to your client, figure out what

you want to do. One way or the other, it does not seem to me

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to make sense to proceed with discovery in this matter,

certainly under the circumstances that everyone is in, and

particularly the plaintiff is in, strapped for revenue, until

we figure out whether a lawsuit is going to go forward.

So talk to your client, figure out whether -- the

defendant should talk to Sentinel. Figure out whether you are

happy staying this case pending a decision on the MDL or not,

and just write me a letter and let me know.

MS. GORDON: Yes, your Honor. Thank you.

MR. MICHAEL: Your Honor --

THE COURT: Anything further from the plaintiff?

MR. MICHAEL: Just one housekeeping matter. This is

Charles Michael, again, for the defendant.

THE COURT: Okay.

MR. MICHAEL: I just wondered if there was any special

procedures for ordering the transcript or if we go just through

the normal Southern District website? I didn't know, under the

COVID circumstances, if there is something different we should

do.

THE COURT: I don't think there is anything different,

but we have got the court reporter on. 

So, Madam Court Reporter, is there anything different 

they need to do? 

THE COURT REPORTER: At the end of this proceeding, I

am going to email the parties with their instructions.

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THE COURT: Okay. 

MR. MICHAEL: Terrific. Thank you so much. 

THE COURT: Anything further from the plaintiff,

Mr. Fischbarg?

MR. FISCHBARG: No. Thank you, Judge.

THE COURT: Anything further from the insurance

company? Ms. Gordon?

MS. GORDON: No. Thank you, your Honor.

THE COURT: All right. Thank you, all.

MR. FISCHBARG: Okay. Bye, Judge.

MR. MICHAEL: Thank you, your Honor.

oOo 

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Exhibit H
SUPERIOR COURT OF THE DISTRICT OF COLUMBIA

CIVIL DIVISION—CIVIL ACTIONS BRANCH

ORDER DENYING PLAINTIFFS’ MOTION FOR SUMMARY JUDGMENT AND 

GRANTING DEFENDANT’S CROSS-MOTION FOR SUMMARY JUDGMENT

This matter comes before the Court on Plaintiffs’ Motion for Summary Judgment

(“Plaintiffs’ Motion”) and Defendant’s Cross-Motion for Summary Judgment (“Defendant’s 

Motion”). While the Court is sympathetic to the plight of Plaintiffs, it must grant summary

judgment to Defendant as a matter of law.

I. FACTS

Plaintiffs own and operate a number of prominent restaurants in the District of Columbia.

They all purchased “Ultrapack Plus Commercial Property Coverage” from Defendant Erie 

Insurance Exchange. Included in this policy is coverage for “loss of ‘income’ and/or ‘rental 

income’” sustained “due to partial or total ‘interruption of business’ resulting directly from ‘loss’ 

or damage” to the property insured. Rose’s 1 Ultrapack Plus Commercial Property Coverage 

(“Coverage”) at 3. The coverage document further states that the “policy insures against direct 

physical ‘loss’” with the exception of several exclusions that are not relevant to this matter. Id. 

at 4.

This case comes in the context of the COVID-19 pandemic. COVID-19 is “a novel 

severe acute respiratory illness that has killed ... more than 100,000 nationwide. At this time,

there is no known cure, no effective treatment, and no vaccine. Because people may be

ROSE’S 1, LLC, et al.,

Plaintiffs,

 v.

ERIE INSURANCE EXCHANGE,

 Defendant.

*

*

*

*

*

*

*

*

*

Civil Case No. 2020 CA 002424 B

Civil II, Calendar I

Judge Kelly A. Higashi

Exhibit

H
2

infected but asymptomatic, they may unwittingly infect others.” South Bay United

Pentecostal Church v. Newsom, 140 S. Ct. 1613 (2020) (Roberts, C.J., concurring). On March 

11, 2020, D.C. Mayor Muriel Bowser declared a state of emergency and a public health 

emergency due to the “imminent hazard of or actual occurrence of widespread exposure” to 

COVID-19. Plaintiffs’ Statement of Material Facts (“SMF”) ¶3. On March 16, Mayor Bowser 

issued an order prohibiting table seating at restaurants and bars in D.C. SMF ¶4. On March 20, 

Mayor Bowser extended this ban to “standing customers at restaurants, bars, taverns, and multipurpose facilities.” SMF ¶5. On March 24, Mayor Bowser ordered the closure of all nonessential businesses. SMF ¶6. On March 30, she ordered all D.C. residents to stay in their 

residences except for limited “essential” reasons, a restriction that continued for several months. 

SMF ¶¶7-8. 

As a result of Mayor Bowser’s orders, the restaurant Plaintiffs were forced to close their 

businesses and suffered serious revenue losses. SMF ¶¶21-22. To cover those losses, they filed 

insurance claims with Defendant pursuant to insurance policies that “are substantively identical 

in all ways relevant to this action.” SMF ¶78. When Defendant denied their claims, Plaintiffs 

filed this lawsuit seeking a declaratory judgment that their claims were covered by the express 

language of their insurance contracts with Defendant. Both sides subsequently moved for 

summary judgment.

II. SUMMARY JUDGMENT STANDARD

D.C. Superior Court Rule of Civil Procedure 56 allows a court to grant summary

judgment to a party when there is no genuine issue of material fact and the moving party is 

entitled to judgment as a matter of law. D.C. Super. Ct. Civ. R. 56(a); Perkins v. District of 

Columbia, 146 A.3d 80, 84 (D.C. 2016). In considering a motion for summary judgment, the 
3

court must view the evidence “in the light most favorable to the nonmoving party, who is entitled 

to all favorable inferences which may reasonably be drawn from the evidentiary materials.” 

Phelan v. City of Mt. Rainier, 805 A.2d 930, 936 (D.C. 2002) (internal quotation marks omitted). 

The Court “may not resolve issues of fact or weigh evidence at the summary judgment stage.” 

Fry v. Diamond Construction, Inc., 659 A.2d 241, 245 (D.C. 1995) (internal quotation marks 

omitted). Even if no material dispute of fact exists, the moving party must still establish that it is 

entitled to judgment as a matter of law. D.C. Super. Ct. Civ. R. 56(a).

III. ANALYSIS

Under District of Columbia law, “[c]ontract principles are applicable to the interpretation

of an insurance policy.” Carlyle Inv. Mgmt. LLC v. Ace Am. Ins. Co., 131 A.3d 886, 894 (D.C. 

2016). “The proper interpretation” of an insurance contract, “including whether [the] contract is 

ambiguous, is a legal question.” Id. (internal quotation mark omitted) (quoting Tillery v. D.C. 

Contract Appeals Bd., 912 A.2d 1169, 1176 (D.C. 2006)). “[A]n insurance policy is to be . . . 

enforced in accordance with the real intent of the parties as expressed in the language employed 

in the policy.” Redmond v. State Farm Ins. Co., 728 A.2d 1202, 1205 (D.C. 1999) (internal 

quotation marks omitted) (quoting Peerless Ins. Co. v. Gonzalez, 697 A.2d 680, 682 (Conn. 

1997)). A court must “give the words used in an insurance contract their common, ordinary, and 

. . . popular meaning,” Id. (omission in original) (internal quotation marks omitted) (quoting 

Quadrangle Dev. Corp. v. Hartford Ins. Co., 645 A.2d 1074, 1075 (D.C. 1994)), and must 

interpret the contract “as a whole, giving reasonable, lawful, and effective meaning to all its 

terms, and ascertaining the meaning in light of all the circumstances surrounding the parties at 

the time the contract was made,” Carlyle Inv. Mgmt., 131 A.3d at 895 (internal quotation mark 

omitted) (quoting Debnam v. Crane Co., 976 A.2d 193, 197 (D.C. 2009)).
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“[I]f the provisions of the contract are ambiguous, the correct interpretation becomes a 

question for a factfinder.” Carlyle Inv. Mgmt., 131 A.3d 886 at 895 (internal quotation marks 

omitted) (quoting Debnam, 976 A.2d at 197-98). “Where,” however, “insurance contract 

language is not ambiguous, summary judgment is appropriate because a written contract duly 

signed and executed speaks for itself and binds the parties without the necessity of extrinsic 

evidence.” Fogg v. Fidelity Nat. Title Ins. Co., 89 A.3d 510, 514 (D.C. 2014) (internal quotation 

marks omitted) (quoting Stevens v. United Gen. Title Ins. Co., 801 A.2d 61, 66 (D.C. 2002)). 

Indeed, the Court “should not seek out ambiguity where none exists.” Athridge v. Aetna Cas. & 

Sur. Co., 351 F.3d 1166, 1172 (D.C. Cir. 2003) (citing Medical Serv. of Dist. of Columbia v. 

Llewellyn, 208 A.2d 734, 736 (D.C. 1965)).

At the most basic level, the parties dispute whether the closure of the restaurants due to 

Mayor Bowser’s orders constituted a “direct physical loss” under the policy. Plaintiffs start with

dictionary definitions to support their case. For example, they cite the American Heritage 

Dictionary definition of “direct” as “[w]ithout intervening persons, conditions, or agencies; 

immediate.” Plaintiffs’ Motion at 9-10. They also cite the Oxford English Dictionary definition 

of “physical” as pertaining to things “[o]f or pertaining to matter, or the world as perceived by

the senses; material as [opposed] to mental or spiritual.” Id. at 10. As for “loss,” it is defined by 

the coverage document as “direct and accidental loss of or damage to covered property.” 

Coverage at 36.

Plaintiffs use these definitions to make three primary arguments. First, Plaintiffs argue 

that the loss of use of their restaurant properties was “direct” because the closures were the direct 

result of the mayor’s orders without intervening action. Plaintiffs’ Motion at 9-10. But those

orders were governmental edicts that commanded individuals and businesses to take certain 
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actions. Standing alone and absent intervening actions by individuals and businesses, the orders

did not effect any direct changes to the properties. 

Second, Plaintiffs argue that their losses were “physical” because the COVID-19 virus is 

“material” and “tangible,” and because the harm they experienced was caused by the mayor’s 

orders rather than “some abstract mental phenomenon such as irrational fear causing diners to 

refrain from eating out.” Plaintiffs’ Motion at 11. But Plaintiffs offer no evidence that COVID19 was actually present on their insured properties at the time they were forced to close. And the 

mayor’s orders did not have any effect on the material or tangible structure of the insured 

properties.

Third, Plaintiffs argue that by defining “loss” in the policy as encompassing either “loss” 

or “damage,” Defendant must treat the term “loss” as distinct from “damage,” which connotes 

physical damage to the property. Plaintiffs’ Motion at 11-12. In contrast, Plaintiffs argue, “loss” 

incorporates “loss of use,” which only requires that Plaintiffs be deprived of the use of their 

properties, not that the properties suffer physical damage. Id. at 12-13. But under a natural 

reading of the term “direct physical loss,” the words “direct” and “physical” modify the word

“loss.” As such, pursuant to Plaintiffs’ dictionary definitions, any “loss of use” must be caused, 

without the intervention of other persons or conditions, by something pertaining to matter—in 

other words, a direct physical intrusion on to the insured property. Mayor Bowser’s orders were 

not such a direct physical intrusion.

Further, none of the cases cited by Plaintiffs stand for the proposition that a governmental 

edict, standing alone, constitutes a direct physical loss under an insurance policy. In Gregory 

Packaging, Inc. v. Travelers Property Casualty Co. of America, the court found that the release 

of ammonia into a juice cup packaging factory was a “direct physical loss” because it constituted 
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“an actual change in insured property then in a satisfactory state, occasioned by accident or other 

fortuitous event directly upon the property causing it to become unsatisfactory for future use or 

requiring that repairs be made to make it so.” 2014 U.S. Dist. LEXIS 165232 at *13-19 (D.N.J. 

Nov. 25, 2014) (quoting AFLAC Inc. v. Chubb & Sons, Inc., 260 Ga. App. 306, 319-20 (Ga. Ct. 

App. 2003)) (internal quotation marks omitted) (emphasis added). Similarly, in Western Fire 

Insurance Co. v. First Presbyterian Church, the Colorado Supreme Court found a “direct 

physical loss” when gasoline fumes from an unknown source entered an insured church and the 

fire department ordered the church’s closure. 437 P.2d 52, 55 (Colo. 1968). The court based its 

reasoning on the fact that the church “became so infiltrated and saturated as to be uninhabitable, 

making further use of the building highly dangerous.” Id. At the same time, the Court noted that 

“[i]t is perhaps quite true” that the fire department’s closure order, “standing alone, does not in 

and of itself constitute a ‘direct physical loss.’” Id. (emphasis added). All of the other cases 

cited by Defendant involved some compromise to the physical integrity of the insured property. 

See Port Authority v. Affiliated FM Insurance Co., 311 F.3d 226, 236 (3d Cir. 2002) (presence of 

asbestos in building was not “physical loss” because building owner could not show real or 

imminent “contamination of the property such that its function is nearly eliminated or destroyed, 

or the structure is made useless or uninhabitable”); Motorists Mut. Ins. Co. v. Hardinger, 131 

Fed. Appx. 823, 826-27 (3d Cir. 2005) (presence of bacterium on property could constitute 

“direct physical loss” if it “reduced the use of the property to a substantial degree”); TRAVCO 

Insurance Co. v. Ward, 715 F. Supp. 2d 699, 709-10 (E.D. Va. 2010), aff’d 504 F. Appx. 251 

(4th Cir. 2013) (home rendered uninhabitable by toxic gases released by defective drywall 

constituted “direct physical loss”); Mellin v. Northern Security Insurance Company, Inc., 115 

A.3d 799, 805 (N.H. 2015) (cat urine odor from neighboring apartment may constitute “direct 
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physical loss” if plaintiff could show “distinct and demonstrable alteration to the unit”); Murray 

v. State Farm Fire & Casualty Co., 509 S.E.2d 1, 16-17 (W.Va. 1998) (landslide rendering 

homes uninhabitable, due to either actual physical damage or palpable future risk of physical 

damage from a follow-on landslide, was a “direct physical loss”); Sentinel Management Co. v. 

New Hampshire Insurance Co., 563 N.W.2d 296, 300-01 (Minn. Ct. App. 1997) (asbestos 

contamination in building was “direct physical loss” when “property rendered useless”).

In contrast, courts have rejected coverage when a business’s closure was not due to direct 

physical harm to the insured premises. In Roundabout Theatre Co. v. Continental Casualty Co., 

the City of New York ordered the closure of a theater after a portion of a neighboring building 

under construction collapsed onto the street and adjacent buildings. 302 A.D.2d 1, 2-3 (N.Y. 

App. Div. 2002). The theater itself sustained minor damage that was repaired in one day. Id. at 

3. Nonetheless, the court found that the theater did not suffer a “direct physical loss” as a result 

of the city-mandated closure. Id. at 7. It found that “[t]he plain meaning of the words ‘direct’ 

and ‘physical’” narrowed the scope of coverage and mandated “the conclusion that losses 

resulting from off-site property damage do not constitute covered perils under the policy.” Id. 

Similarly, in Newman Myers Kreines Gross, P.C. v. Great Northern Insurance Co., a federal 

district court found that a law firm did not suffer a “direct physical loss” when an electric utility

preemptively shut off power in advance of Hurricane Sandy. 17 F. Supp. 3d 323 (S.D.N.Y. 

2014). The court distinguished the cases cited by the law firm (several of which were also cited 

by Plaintiffs in this case) as either “involv[ing] the closure of a building due to either a physical 

change for the worse in the premises ... or a newly discovered risk to its physical integrity.” Id. 

at 330. Citing Roundabout, the Court reasoned:

The critical policy language here—"direct physical loss or damage"—similarly, and 

unambiguously, requires some form of actual, physical damage to the insured premises to 
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trigger loss of business income and extra expense coverage. Newman Myers simply

cannot show any such loss or damage to the 40 Wall Street Building as a result of either 

(1) its inability to access its office from October 29 to November 3, 2012, or (2) Con Ed's 

decision to shut off the power to the Bowling Green network. The words "direct" and 

"physical," which modify the phrase "loss or damage," ordinarily connote actual, 

demonstrable harm of some form to the premises itself, rather than forced closure of the 

premises for reasons exogenous to the premises themselves, or the adverse business 

consequences that flow from such closure.

Id. at 331; see also United Airlines, Inc. v. Insurance Co. of State of Pa., 385 F. Supp. 2d 343, 

349 (S.D.N.Y. 2005), aff'd 439 F.3d 128 (2d Cir. 2006) (“The inclusion of the modifier ‘physical' 

before ‘damages’ . . . supports [defendant’s] position that physical damage is required before 

business interruption coverage is paid.”); Philadelphia Parking Auth. v. Federal Insurance Co., 

385 F. Supp. 2d 280, 287-88 (S.D.N.Y. 2005) (noting that “‘direct physical’ modifies both loss 

and damage,” and therefore “the interruption in business must be caused by some physical 

problem with the covered property . . . which must be caused by a ‘covered cause of loss’”).

While the Court can find no published cases in this jurisdiction analyzing the exact term 

“direct physical loss,” cases addressing similar issues do not help Plaintiffs. Most relevantly, in 

Bros., Inc. v. Liberty Mutual Fire Insurance Co., the District of Columbia Court of Appeals 

considered whether a restaurant could recover on its claim after it lost business due to a curfew 

imposed by the D.C. government as a result of the riots following the assassination of Dr. Martin 

Luther King, Jr. in 1968. 268 A.2d 611 (D.C. 1970). The insurance contract included this 

relevant language:

In consideration of the premium for this coverage shown on the first page of this policy

[Building and Contents] . . . the coverage of this policy is extended to include direct loss 

by . . . Riot . . . [and] Civil Commotion . . . .

When this Endorsement is attached to a policy covering Business Interruption, . . . the 

term “direct,” as applied to loss, means loss, as limited and conditioned in such policy, 

resulting from direct loss to described property from perils insured against; . . . .
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Id. at 613 (emphasis in original).1 The Court of Appeals interpreted the term “direct loss” in the 

contract to mean “a loss proximately resulting from physical damage to the property or contents 

caused by a riot or civil commotion.” Id. Under that definition, the Court found that the 

restaurant was unable to recover, since, “at the most,” the restaurant’s lost business due to the 

curfew “was an indirect, if not remote, loss resulting from riots” and there was no “physical 

damage to the property.” Id. Accordingly, while the Court agrees with Plaintiffs that Bros., Inc. 

is not directly on point, the case does support the proposition that, in the context of property

insurance, the term “direct loss” implies some form of direct physical change to the insured 

property.

With both dictionary definitions and the weight of case law supporting Defendant’s 

interpretation of the term “direct physical loss,” Plaintiffs’ additional arguments are 

unconvincing. First, Plaintiffs argue that because the insurance contract has specific exclusions 

for “loss of use” under some coverage lines but not for Income Protection coverage, the Court 

should infer that the Income Protection coverage covers losses such as Plaintiffs’. Plaintiffs’ 

Motion at 13-14. But as already discussed, even if “loss of use” was covered, Plaintiffs would 

still have to show that the loss of use was a “direct physical loss” similar to those in the cases 

discussed supra at 5-7. And for the reasons explained in this order, there was no “direct physical 

loss” to Plaintiffs. Second, Plaintiffs argue that, unlike some similar insurance policies, their 

policies do not include a specific exclusion for pandemic-related losses. Id. at 19-20. But again, 

 

1 This Court notes that the phrase at issue in the Bros., Inc. contract was “direct loss,” as opposed to “direct physical 

loss,” at issue in the present case, and that in the Bros., Inc. case, there was an issue as to whether the “Building and 

Contents” Form, which was mistakenly attached to the policy at the time of signing, or the “Business Interruption” 

Form, which the insurance company later substituted, was construed by the trial court. However, the Court of 

Appeals found it “unnecessary to ascertain which of the two forms was construed by the trial court,” 268 A.2d at 

612, as the Court found that the insurance company prevailed under both forms.
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even in the absence of such an exclusion, Plaintiffs would still be required to show a “direct 

physical loss.” Because they cannot do so, the Court grants summary judgment to Defendant.

Accordingly, it is this 6th day of August, 2020, hereby

ORDERED that Plaintiffs’ Motion for Summary Judgment is DENIED; and it is further

ORDERED that Defendant’s Cross-Motion for Summary Judgment is GRANTED; and 

it is further

ORDERED that judgment is ENTERED in favor of Defendant Erie Insurance Exchange 

and against Plaintiffs, the initial scheduling conference is VACATED, and the case is CLOSED.

___________________________

 Kelly A. Higashi 

Associate Judge 

 (Signed in Chambers) 

COPIES TO:

David L. Feinberg

Michael C. Davis

George E. Reede, Jr.

Jessica Pak

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